Agenda packet — Palo Alto City Council, May 12, 2025 (part 1 of 3)

CITY COUNCIL
Regular Meeting
Monday, May 12, 2025
Council Chambers & Hybrid
5:30 PM

Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference or in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda.

The meeting will be broadcast on Cable TV Channel
26, live on YouTube
https://www.youtube.com/c/cityofpaloalto
, and streamed to Midpen Media
Center
https://midpenmedia.org
.

VIRTUAL PARTICIPATION

CLICK HERE TO JOIN

(
https://cityofpaloalto.zoom.us/j/362027238
)
Meeting ID: 362 027 238 Phone:1(669)900-6833

PUBLIC COMMENTS
General

Public

Comment

for

items

not

the

agenda

will

accepted

person

for

three
minutes

amount

time

determined

the

Chair.

General

public

comment

will

heard
for

30 minutes.

Additional

public

comments,

any,

will

heard

the

end

the

agenda.

Public

comments

for

agendized

items

will

accepted

both

person

and

via

Zoom

for

to
three

minutes

amount

time

determined

the

Chair.

Requests

speak

will

taken
until

5 minutes

after

the

staff’s

presentation

determined

the

Chair.

Written

public
comments

can

submitted

advance

[email protected]

and

will

provided

to
the

Council

and

available

for

inspection

the

City’s

website.

Please

clearly

indicate

which
agenda item you are referencing in your subject line.

PowerPoints,

videos,

other

media

presented

during

public

comment

are

accepted

only
by

[email protected]

least

24 hours

prior

the

meeting.

Once

received,

the

Clerk

will

have

them

shared

public

comment

for

the

specified

item.

uphold

strong
cybersecurity

management

practices,

USB’s

other

physical

electronic

storage

devices

are

not
accepted.

Signs

and

symbolic

materials

less

than

2 feet

3 feet

are

permitted

provided

that:

(1)

sticks,
posts,

poles

similar/other

type

handle

objects

are

strictly

prohibited;

(2)

the

items

not
create

facility,

fire,

safety

hazard;

and

(3)

persons

with

such

items

remain

seated

when
displaying

them

and

must

not

raise

the

items

above

shoulder

level,

obstruct

the

view

passage
of other attendees, or otherwise disturb the business of the meeting.

TIME ESTIMATES
Listed

times

are

estimates

only

and

are

subject

change

any

time,

including

while

the
meeting

progress.

The

Council

reserves

the

right

use

less

time

any

item,

to
change

the

order

items

and/or

continue

items

another

meeting.

Particular

items

may

be
heard

before

after

the

time

estimated

the

agenda.

This

may

occur

order

best
manage the time at a meeting or to adapt to the participation of the public.

1 May 12, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at
www.paloalto.gov/agendas
.

CALL TO ORDER

SPECIAL ORDERS OF THE DAY (5:30 - 5:50 PM)

1. Proclamations Honoring Ella Cohen – California Interscholastic Federation State Wrestling Champion, and Angelina Jiang – State Runner Up

2. Proclamation Recognizing National Police Week as May 11-17, 2025, and National Peace Officers' Memorial Day as May 15, 2025

3. Review List of Applicants and Select Candidates to Interview for the Architectural Review Board (ARB) Vacancies; CEQA Status: Not a project
Supplemental Report added

AGENDA CHANGES, ADDITIONS AND DELETIONS

PUBLIC COMMENT (5:50 - 6:20 PM)
Members of the public may speak in-person ONLY to any item NOT on the agenda. 1-3 minutes depending on number of speakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:20 - 6:30 PM) Members of the public may not speak to the item(s).

STUDY SESSION (Item 4: 6:30 - 8:00 PM, Item 5: 8:00 - 9:00 PM)

4. FY 2026 Proposed Operating and Capital Budget - Finance Committee Update and Council Budget Discussion
Late Packet Report added

5. Discussion of Strategies for the Use of Low Carbon Fuel Standard, Electric and Gas Cap and Trade, and Electric and Gas Public Benefits Revenues; CEQA Status - Not a Project

CONSENT CALENDAR (9:00 - 9:05 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

6. Approve the Office of the City Auditor Quarterly Report for the Period of October - December 2024

2 May 12, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at
www.paloalto.gov/agendas
.

7. Stanford University Medical Center (SUMC) Annual Report to Council for Fiscal Year 2024 (FY 24)

8. Approval of Professional Services Contract No. C25193532 with Biggs Cardosa Associates Inc. in an Amount Not to Exceed $750,000 for On-Call Structural Engineering Services for City Structures including Bridges, Buildings, and Other Structures over a Period of Three Years; CEQA status – Not a Project

9. Approval of Two Professional Services Contracts, No. C25192359A with the Embarcadero Media Foundation and C25192359B with San Francisco Daily dba The Daily Post, in an Amount Not to Exceed $425,000 in Total for Legal Advertising Services for a Period of 5 Years; CEQA Status - Not a Project
CITY MANAGER COMMENTS (9:05 - 9:20 PM)

BREAK (15 MINUTES)

ACTION ITEMS (Item 10: 9:35 - 11:00 PM)
Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.

10. FIRST READING: Adoption of an Ordinance Amending Various Palo Alto Municipal Code Chapters in Title 16 and 18 in Response to Direction from the California Department of Housing and Community Development (HCD) Regarding State Accessory and Junior Accessory Dwelling Unit Law. CEQA Status - Exempt From the Provisions of the California Environmental Quality Act (CEQA) Pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines Section 15061(b)(3).

ADJOURNMENT

INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action during this meeting’s agenda.

11. Sales Tax Digest Q4 (Oct-Dec) 2024

OTHER INFORMATION
Standing Committee Meetings this week

3 May 12, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at
www.paloalto.gov/agendas
.

Council Appointed Officers Committee May 12, 2025
Policy & Services Committee May 13, 2025
City/Schools Liaison Committee May 15, 2025 CANCELED

Public Comment Letters
Schedule of Meetings

SUPPLEMENTAL / AMENDED AGENDA ITEMS

3. Review List of Applicants and Select Candidates to Interview for the Architectural Review Board (ARB) Vacancies; CEQA Status: Not a project
Supplemental Report added

4. FY 2026 Proposed Operating and Capital Budget - Finance Committee Update and Council Budget Discussion
Late Packet Report added

4 May 12, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at
www.paloalto.gov/agendas
.

PUBLIC COMMENT INSTRUCTIONS
Members

the

Public

may

provide

public

comments

teleconference

meetings

via

email,
teleconference, or by phone.

1. Written public comments
may be submitted by email to
[email protected]
.

2. For

person

public

comments

please

complete

speaker

request

card

located

the
table

the

entrance

the

Council

Chambers

and

deliver

the

Clerk

prior

to
discussion of the item.

3. Spoken

public

comments

for

agendized

items

using

computer

smart

phone

will

be
accepted

through

the

teleconference

meeting.

address

the

Council,

click

the

link
below to access a Zoom-based meeting. Please read the following instructions carefully. ◦
You

may

download

the

Zoom

client

connect

the

meeting

in-

browser.

using
your

browser,

make

sure

you

are

using

current,

up-to-date

browser:

Chrome

30 ,
Firefox

27 ,

Microsoft

Edge

12 ,

Safari

7 .

Certain

functionality

may

disabled

in
older

browsers

including

Internet

Explorer.

download

the

Zoom

application

onto
your

smart

phone

from

the

Apple

App

Store

Google

Play

Store

and

enter

the
Meeting ID below.
◦
You

may

asked

enter

address

and

name.

request

that

you
identify

yourself

name

this

will

visible

online

and

will

used

notify

you
that it is your turn to speak.
◦
When

you

wish

speak

Agenda

Item,

click

“raise

hand.”

The

Clerk

will
activate

and

unmute

speakers

turn.

Speakers

will

notified

shortly

before

they
are called to speak.
◦
When

called,

please

limit

your

remarks

the

time

limit

allotted.

timer

will

be
shown on the computer to help keep track of your comments.

4. Spoken

public

comments

for

agendized

items

using

phone

use

the

telephone

number
listed

below.

When

you

wish

speak

agenda

item

hit

your

phone

we
know

that

you

wish

speak.

You

will

asked

provide

your

first

and

last

name

before
addressing

the

Council.

You

will

advised

how

long

you

have

speak.

When

called
please limit your remarks to the agenda item and time limit allotted.

CLICK HERE TO JOIN
Meeting ID: 362-027-238 Phone: 1-669-900-6833
Americans

with

Disability

Act

(ADA)

the

policy

the

City

Palo

Alto

offer

its

public
programs,

services

and

meetings

manner

that

readily

accessible

all.

Persons

with
disabilities

who

require

materials

appropriate

alternative

format

who

require

auxiliary
aids

access

City

meetings,

programs,

services

may

contact

the

City’s

ADA

Coordinator

at
(650)

329-2550

(voice)

emailing

[email protected]
.

Requests

for

assistance

or
accommodations

must

submitted

least

24 hours

advance

the

meeting,

program,

or
service.

5 May 12, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at
www.paloalto.gov/agendas
.

California

Government

Code

§84308
,

commonly

referred

the

"Levine

Act,"

prohibits

an
elected

official

local

government

agency

from

participating

proceeding

involving

a
license,

permit,

other

entitlement

for

use

the

official

received

campaign

contribution
exceeding

$500

from

party

participant,

including

their

agents,

the

proceeding

within

the
last

12 months.

“license,

permit,

other

entitlement

for

use”

includes

most

land

use

and
planning

approvals

and

the

approval

contracts

that

are

not

subject

lowest

responsible

bid
procedures

and

have

value

over

$50,000.

“party”

person

who

files

application

for,

or
is

the

subject

of,

proceeding

involving

license,

permit,

other

entitlement

for

use.

A
“participant”

person

who

actively

supports

opposes

particular

decision

proceeding
involving

license,

permit,

other

entitlement

for

use,

and

has

financial

interest

the
decision.

The

Levine

Act

incorporates

the

definition

“financial

interest”

the

Political

Reform
Act,

which

encompasses

interests

business

entities,

real

property,

sources

income,

sources
of

gifts,

and

personal

finances

that

may

affected

the

Council’s

actions.

you

qualify

a
“party”

“participant”

proceeding,

and

you

have

made

campaign

contribution

a
Council

Member

exceeding

$500

made

within

the

last

12 months,

you

must

disclose

the
campaign contribution before making your comments.

6 May 12, 2025
Materials submitted after distribution of the agenda packet are available for public inspection at
www.paloalto.gov/agendas
.

City Council
Staff Report
Report Type: SPECIAL ORDERS OF THE DAY
Lead Department: City Clerk
Meeting Date: May 12, 2025
Report #:2504-4548
TITLE
Proclamations Honoring Ella Cohen – California Interscholastic Federation State Wrestling Champion, and Angelina Jiang – State Runner Up

ATTACHMENTS
Attachment A: Proclamation Honoring Ella Cohen
Attachment B: Proclamation Honoring Angelina Jiang
APPROVED BY:

Mahealani Ah Yun
Item 1
Item 1 Staff Report

Item 1: Staff Report
Pg.
1 Packet Pg. 7 of 349

HONORING ELLA COHEN

WHEREAS, Ella Cohen, a freshman at Palo Alto High School, has demonstrated exceptional athletic ability and commitment to wrestling; and
WHEREAS, Ella Cohen won the 2025 USA Wrestling Girls National High School Showcase tournament; and
WHEREAS, Ella Cohen has achieved the remarkable feat of winning the California Interscholastic Federation State Wrestling Championship in the 105-pound division; and WHEREAS, this accomplishment is a testament to Ella Cohen’s hard work, skill, and the support she has received from her coaches, family, and the Palo Alto High School athletic program; and WHEREAS, Ella Cohen's achievement brings pride and recognition to Palo Alto High School and the City of Palo Alto.

NOW, THEREFORE I, Ed Lauing, Mayor of the City of Palo Alto, on behalf of the entire City Council, do hereby recognize and congratulate Ella Cohen for her outstanding achievement in winning the CIF State Wrestling Championship. We commend her dedication, sportsmanship, and the positive impact she has on our community.

Presented: May 12, 2025

______________________________
Ed Lauing
Mayor

Proclamation
Item 1
Attachment A -
Proclamation Honoring
Ella Cohen

Item 1: Staff Report
Pg.
2 Packet Pg. 8 of 349

HONORING ANGELINA JIANG

WHEREAS, Angelina Jiang, a senior at Gunn High School, has shown exceptional athletic ability and commitment to wrestling; and
WHEREAS, Angelina Jiang won the 2024 Brian Keck P reseason Girls National Wrestling Tournament; and
WHEREAS, Angelina Jiang has distinguished herself as a runner -up in the 155-pound division at the California Interscholastic Federation State Wrestling Tournament; and WHEREAS, Angelina Jiang followed this up by winning the California F reestyle Wrestling Championship in Fresno; and
WHEREAS, this accomplishment is a testament to Angelina Jiang's hard work, skill, and the support she has received from her coaches, family, and the Gunn High School athletic program; and WHEREAS, Angelina Jiang's achievement brings pride and recognition to Gunn High School and the City of Palo Alto.

NOW, THEREFORE I, Ed Lauing, Mayor of the City of Palo Alto, on behalf of the entire City Council, do hereby recognize and congratulate Angelina Jiang for her outstanding achievement as a runner-up in the CIF State Wrestling Tournament. We commend her dedication, sportsmanship, and the positive impact she has on our community.

Presented: May 12, 2025

______________________________
Ed Lauing
Mayor

Proclamation
Item 1
Attachment B -
Proclamation Honoring
Angelina Jiang

Item 1: Staff Report
Pg.
3 Packet Pg. 9 of 349

City Council
Staff Report
Report Type: SPECIAL ORDERS OF THE DAY
Lead Department: Police
Meeting Date: May 12, 2025
Report #:2410-3702
TITLE
Proclamation Recognizing National Police Week as May 11-17, 2025, and National Peace Officers' Memorial Day as May 15, 2025

ATTACHMENTS
Attachment A: Proclamation Recognizing National Police Week and National Peace Officers’ Memorial Day
APPROVED BY:

Andrew Binder, Police Chief
Item 2
Item 2 Staff Report

Item 2: Staff Report
Pg.
1 Packet Pg. 10 of 349

NATIONAL POLICE WEEK, MAY 11 - 17, AND
NATIONAL PEACE OFFICERS’ MEMORIAL DAY, MAY 15, 2025

WHEREAS, the United States Congress and the President of the United States have designated May 15, 2025, as National Peace Officers’ Memorial Day and the week in which it falls as Police Week; and WHEREAS, the members of the Palo Alto Police Department play an essential role in safeguarding the rights and freedoms of its citizens; and
WHEREAS, it is important that all citizens know and understand the problems, duties, and responsibilities of their police department, and that members of our police department recognize their duty to serve the people by safeguarding life and property, by protecting against violence or disorder, and by protecting the innocent against deception and the weak against oppression or intimidation; and WHEREAS, the City of Palo Alto asks all citizens to join in honoring the police officers, past and present, who, by their faithful and loyal devotion to their responsibilities , have rendered a dedicated service to their communities and, in doing so, have established for themselves an enviable and enduring reputation for preserving the rights and security of all citizens.

NOW, THEREFORE I, Ed Lauing, Mayor of the City of Palo Alto, on behalf of the entire City Council, do hereby proclaim the week of May 11
th - 17th, 2025, as Police Week and urge all citizens of Palo Alto to observe Thursday, May 15th, 2025, as Peace Officers’ Memorial Day in honor of those peace officers who, through their courageous deeds, have lost their lives or have become disabled in the performance of duty.

Presented: May 12, 2025

______________________________
Ed Lauing
Mayor

Proclamation
Item 2
Attachment A -
Proclamation Recognizing
National Police Week and
National Peace Officers’
Memorial Day

Item 2: Staff Report
Pg.
2 Packet Pg. 11 of 349

City Council
Staff Report
Report Type: SPECIAL ORDERS OF THE DAY
Lead Department: City Clerk
Meeting Date: May 12, 2025
Report #:2504-4600
TITLE
Review List of Applicants and Select Candidates to Interview for the Architectural Review Board (ARB) Vacancies; CEQA Status: Not a project

RECOMMENDATION
Staff recommends the City Council to review the list of applicants from the Architectural Review Board Extended Recruitment and select candidates to interview. An interview selection process for Boards, Commissions, and Committee (BCC) candidates will be considered by the City Council at the City Council Regular Meeting scheduled for May 5, 2025. A supplemental report will be published on May 8, 2025 with an update regarding City’s Council’s decision.

BACKGROUND
The Spring 2025 recruitment cycle for the Architectural Review Board aimed to fill Seats 1, 2, and 5, with terms beginning April 1, 2025, and ending March 31, 2028. The initial recruitment resulted in three (3) applicants, two (2) of whom were incumbents.

At the Regular Meeting on March 10, 20251, the City Council voted to interview all three applicants. In addition, City Council directed staff to report to the Policy and Services Committee with a revised BCC interview selection process for all future BCC recruitments. The City Council is scheduled to consider the Committee’s recommendation at its May 5, 2025 meeting and will use whichever process is adopted to select interview candidates for this ARB recruitment.

The thee (3) initial candidates were interviewed at the City Council Special Meeting on March 24, 2025.2 City Council expressed a desire to expand the applicant pool and directed staff to 1City Council, March 10, 2025; Agenda Item #1:SR #2502-4136 https://portal.laserfiche.com/Portal/DocView.aspx?id=149099&repo=r-704298fc 2City Council, March 24, 2025; Summary Minutes
https://portal.laserfiche.com/Portal/DocView.aspx?id=162462&repo=r-704298fc Item 3
Item 3 Staff Report

Item 3: Staff Report
Pg.
1 Packet Pg. 12 of 349

reopen the recruitment for the Architectural Review Board. The extended recruitment period was launched on March 27, 2025, with a revised application deadline set for April 30, 2025.

Total Applications Received (12):
•Ashutosh Gupta
•Bei Xu
•Daniel Benas
•Danny Cao
•David Hirsch (Incumbent) *
•Grace Lee
•Khelan Bhatt
•Martin Jojarth
•Matthew Kelly
•Naveen Govind
•Sema Yavuz *
•Yingxi Chen (Incumbent) *
*Interviews completed March 24, 2025
Simultaneously, staff presented a range of options to the Policy and Services Committee on April 8, 20253, aimed at addressing the City Council direction to improve the overall interview selection process. The Committee approved the recommendation below, which will be brought to City Council for consideration at the May 5, 20254 meeting MOTION: Vice Mayor Veenker moved, seconded by Councilmember Lu, to recommend the City Council adopt the following procedure to select BCC candidates to interview:

The number of candidates to interview varies based on the number of vacancies.

Councilmembers will vote on whom to interview, getting twice the number of votes as there are openings. The top vote getters are interviewed. •Interview all candidates if there are 6 or fewer applicants •Interview up to 6 candidates when there 1-2 openings
•Interview up to 8 candidates when there are 3 openings •Interview up to 10 candidates when there are 4 openings MOTION PASSED: 3-0
3 Policy and Services Committee, April 8, 2025; Summary Minutes https://portal.laserfiche.com/Portal/DocView.aspx?id=161075&repo=r-704298fc 4 City Council, May 5, 2025; Agenda Item #11; SR#2504-4537 https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=5a4dda36-269d-432b-bbed-f8e2e51aeff0 Item 3
Item 3 Staff Report

Item 3: Staff Report
Pg.
2 Packet Pg. 13 of 349

Membership Requirements
At least three members shall be architects, landscape architects, building designers or other design professionals (PAMC 2.21.0102). This requirement is currently satisfied by Commissioners Mousam Adcock, Kendra Rosenberg, David Hirsch and Yingxi Chen. David Hirsch and Yingxi Chen’s terms are expiring, and their applications are included in this recruitment.

STAKEHOLDER ENGAGEMENT
City staff publicized the recruitment through the City’s Uplift Local community e-newsletter, City Clerk’s Office e-newsletters, the City’s website and the City’s social media channels.

Recruitment information was also posted at Palo Alto libraries and City Hall and distributed by email to community-based organizations, businesses, individuals, and City subscription-based notification lists. The recruitment was also advertised in both print and online advertisements in Palo Alto’s local newspapers.

ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because it an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. CEQA Guidelines section 15378(b)(5).

ATTACHMENTS
Attachment A: Architectural Review Board Initial & Extended Recruitment Applications - Redacted
APPROVED BY:

Mahealani Ah Yun, City Clerk
Item 3
Item 3 Staff Report

Item 3: Staff Report
Pg.
3 Packet Pg. 14 of 349

Architectural Review Board Application
Submitted on 14 April 2025, 3:40pm
Receipt number 82
Related form version 15
Name Ashutosh Gupta
Cell Phone Number
Home Phone Number
Email Address
Are you a Palo Alto resident? No
Address
City FREMONT
Postal Code 94536
Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members?
No
Are you available and committed to complete the term applied for?
Yes
Fair Political Practices
No
Excluding your principal residence, do you or your spouse own real property in Palo Alto?
No
How did you learn about the vacancy on the Architectural Review Board?
Email from the City
Personal Information
1 of 3
Item 3
Attachment A -
Architectural Review
Board Initial and
Extended Applications-
Redacted

Item 3: Staff Report
Pg.
4 Packet Pg. 15 of 349

Read the code, and check only ONE option below: I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City’s website.

Consent to Publish Personal Information on the City of Palo Alto Website Occupation Director of Design at OR Homes
Please list your relevant education, training, experience, certificates of training, licenses, and professional registration.

If describing work experience, please include
company/employer name and occupation.
.I hold a Bachelor's in Architecture, NCARB certification, and am a licensed architect. I'm also a LEED AP and have an MBA from the University of Illinois Urbana-Champaign. I founded and run a residential architecture firm focused on single-family homes, with extensive experience in Palo Alto and neighboring Bay Area cities—having designed hundreds of homes. In addition to my design practice, I bring a strong technology background, having led engineering teams as Director of Engineering in both Y Combinator-backed startups and large firms like Nielsen, NetApp, and Informatica. This unique blend of architecture and tech leadership aligns well with the innovation-driven culture of the Bay Area.

Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held.
.I have volunteered with Habitat for Humanity and Friends of the Library, contributing time toward housing and literacy efforts. I'm also active in local animal rescue—fostering dogs and helping them find permanent homes. As an architect, I’ve worked closely with hundreds of homeowners, gaining insight into evolving community needs and values around housing, sustainability, and quality of life. My professional and volunteer work reflects a deep commitment to supporting and improving the communities I live and work in.

Please select all that apply to you. Architect, landscape architect, building designer, other design professional
Personal and Job Experience

1. Why are you interested in serving on the Architectural Review Board and what experience would you bring to the position?
I bring a unique perspective through my background in architecture, technology, and business, as well as my LEED accreditation and entrepreneurial experience. Having grown up in India—a country with a rich architectural heritage—I value cultural diversity in design. I’m passionate about sustainable, people-centered spaces and believe Palo Alto can further embrace outdoor environments for casual gatherings, recreation, and community connection. With my cross-disciplinary background and deep understanding of both local housing needs and broader design trends, I hope to contribute to a vibrant, thoughtful built environment.

2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it.

While I appreciate the Board’s work on a range of design and planning issues, I’m particularly interested in how we shape spaces—both indoor and outdoor—to foster human connection. In today’s screen-driven world, it’s more important than ever to create environments that encourage real, in-person interaction, especially for children and families.

I’m passionate about designs that build community, support well-being, and activate public and semi-public spaces as places for gathering, play, and casual engagement.

3. If you are appointed, what specific goals would you like to see the Architectural Review Board achieve, and how would I would like the Architectural Review Board to place greater emphasis on the thoughtful use of open spaces to strengthen community connection Application Questions
2 of 3
Item 3
Attachment A -
Architectural Review
Board Initial and
Extended Applications-
Redacted

Item 3: Staff Report
Pg.
5 Packet Pg. 16 of 349

you help in the process? and well-being. This includes supporting the integration of parks, informal gathering spaces, and areas for recreation and sports into new developments. I would contribute by advocating for designs that balance aesthetics with functionality and promote healthier, more engaged communities through well-planned outdoor environments.

4. Please identify a project (or projects) that you find to be examples of good architecture, and explain why. You may include samples, identify project addresses, or provide links.

Some exemplary projects of good architecture include:

Sangath (Ahmedabad, Gujarat)
Jawahar Kala Kendra (Jaipur, Rajasthan)
Tongva Park (Santa Monica, California)
Menil Drawing Institute (Houston, Texas)
In ancient cultures, architecture was a direct response to the environment and the needs of its inhabitants. When I moved to the U.S. 20 years ago, I noticed that homes, whether in Chicago, Texas, Florida, or California, were often quite similar despite vastly different climates.

This lack of response to local environment and context stood in contrast to the thoughtful design seen in more traditional cultures, where buildings were shaped by their surroundings and purpose.

5. Architectural Review Board Members work with the
documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection, but will help you better understand the work of the board.

I have experience working with zoning codes while designing homes in Palo Alto, ensuring compliance with local regulations and design standards. I am also familiar with CEQA (California Environmental Quality Act) and its implications in the planning and design process If you'd like to provide any additional documents, please upload below.

Please confirm that you have read the Boards and
Commissions Handbook.

Yes
Signature Name of signatory: Ashutosh Gupta
Date Completed 04/14/2025
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Architectural Review Board Application
Submitted on 18 April 2025, 6:00pm
Receipt number 85
Related form version 15
Name Bei Xu
Cell Phone Number
Home Phone Number
Email Address
Are you a Palo Alto resident? No
Address
City Hayward
Postal Code 94544
Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members?
No
Are you available and committed to complete the term applied for?
Yes
Fair Political Practices
No
Excluding your principal residence, do you or your spouse own real property in Palo Alto?
No
How did you learn about the vacancy on the Architectural Review Board?
Email from the City
Personal Information
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Consent to Publish Personal Information on the City of Palo Alto Website Occupation Senior Architect
Please list your relevant education, training, experience, certificates of training, licenses, and professional registration.

If describing work experience, please include
company/employer name and occupation.

I hold a BA in Architecture and minor in Urban Planning from UC Berkeley and an MArch from Cornell University. I am a licensed architect in California, with LEED AP BD+C and WELL AP certifications. I currently work as a Senior Architect at Tesla Design + Planning. Prior to joining Tesla, I was a Lead Project Designer at DES Architects + Engineers and an Associate at Studios Architecture.

Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held.

I was a summer intern at the Planning Department at City of Albany in 2008, then I continue my role as a volunteer through summer of 2009.

Please select all that apply to you. Architect, landscape architect, building designer, other design professional
Personal and Job Experience

1. Why are you interested in serving on the Architectural Review Board and what experience would you bring to the position?
I am interested in serving on the Board because I believe in the power of thoughtful, well-designed architecture and planning, I want to take part in shaping a vibrant, sustainable, and inclusive community. With over 8 years of professional experience, I bring a strong understanding of design excellence, environmental stewardship, and community-focused development.

My academic background laid a strong foundation in design theory and critical thinking. Professionally, I have designed and led a diverse range of projects, from proviate residentials to large-scale commercial developments. My LEED and WELL AP certifications reflect my commitment to sustainbility and wellness design.

Having worked in both side of the induestry, I bring a balanced perspective that values innovation while respecting contextual and regulatory considerations. I’m passionate about contributing to a review process that upholds design integrity while encouraging creativity and dialogue among stakeholders.

2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it.

I am interested in the California Avenue Signage Program and Outdoor Activation Zone topic. I think it's a great way to engage commercial activities with community space, promoting more walkable and car-free urban blocks. Visual signage is also a powerful tool to define the character and function of the street. That said, I think there are many challenges that come with outdoor programs like this. It’s critical to learn from past projects and other cities, and to gather feedback from the businesses that will be operating in the space.

3. If you are appointed, what specific goals would you like to see the Architectural Review Board achieve, and how would you help in the process?
If appointed to the Palo Alto ARB, my goals would be to promote design innovation, sustainability, and greater transparency in the review process. With experience on both the architectural and ownership sides of development, I recognize the importance of balancing the architect's design intent with the financial realities faced by the owners. As a Application Questions
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Architectural Review Board Application
Submitted on 22 April 2025, 2:49pm
Receipt number 88
Related form version 15
Name Daniel Phillip Benas
Cell Phone Number
Home Phone Number
Email Address
Are you a Palo Alto resident? Yes
Address
City Palo Alto
Postal Code 94306
Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members?
No
Are you available and committed to complete the term applied for?
Yes
Fair Political Practices
No
Excluding your principal residence, do you or your spouse own real property in Palo Alto?
No
How did you learn about the vacancy on the Architectural Review Board?
Email from the City
Personal Information
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Consent to Publish Personal Information on the City of Palo Alto Website Occupation Finance Professional
Please list your relevant education, training, experience, certificates of training, licenses, and professional registration.

If describing work experience, please include
company/employer name and occupation.

BS Business--UC Berkeley; MBA-UCLA. Active CPA licenses in California and Texas. Employer name is Business Wire-a Berkshire Hathaway Company. Head of Finance.

Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held.

I have volunteered in the past through my religious affiliation and am also a docent for California St. Parks
Please select all that apply to you. None
Personal and Job Experience

1. Why are you interested in serving on the Architectural Review Board and what experience would you bring to the position?
My experience relating to this area is financial and project related. As a finance professional, I have been involved in manufacturing and facilities build-outs, including wafer fabs. My value add would be mostly on the practical versus esthetic side where I have true deep experience versus opinions.

2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it.

The issue of second story overlay in the Eichler communities where I live.

3. If you are appointed, what specific goals would you like to see the Architectural Review Board achieve, and how would you help in the process?
The dual goals of developing business in the community while retaining the current Palo Alto esthetic

4. Please identify a project (or projects) that you find to be examples of good architecture, and explain why. You may include samples, identify project addresses, or provide links.

There have been numerous upgrades and rebuilds on my street. There were two across the street from me. One family took the care to build a two-story house while retaining the Eichler esthetic. Very thoughtfully done. The other house next door was just a McMansion that while nice, doesn't particularly fit within the neighborhood. People have the right to do what they want within the law, but I thought the prior example was more tasteful.

I do not have working experience with these documents but reading legal and technical documents have been a part of my job for 45 years.

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If you'd like to provide any additional documents, please upload below.

Daniel Benas Resume.2.19.24.doc
Please confirm that you have read the Boards and
Commissions Handbook.

Yes
Signature Name of signatory: Daniel P Benas
Date Completed 04/22/2025
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DANIEL BENAS, CPA (active)
Palo Alto, CA 94306

Highly accomplished & results-driven, 30+ years of experience in scaling, ramping and monetizing companies, developing motivated finance teams, spearheading finance -related practices along with verifiable success in streamlining operations. Organizational scope includes Fortune 500, Controllership of three public companies and successful pre-IPO companies.

Core Competencies include: Technical Accounting (US GAAP, SEC Reporting & Revenue recognition); ASC 606 Implementation; IPO Experience; Collaborative Leadership; Effective Recruiter, Talent Development and Mentoring, Building organizational capabil ity; Financial Planning and Analysis; Scaling and Ramping Operations; M&A Diligence & Integration; Sarbanes-Oxley/ Processes and Procedures; ERP Implementation; Treasury & Bank Relationships; Successful leadership through public company restatements and SOX remediation; Legal Relationships; Multi-Disciplined Manager of: Human Resources, IT, Facilities and Production Control Depts.

EXPERIENCE
BUSINESS WIRE-A BERKSHIRE HATHAWAY COMPANY- Vice President-Finance 2020-Present • Finance Head reporting to CEO. Leading Finance portion of operational turn- around of media-tech company acquired by BRK • Reduced close by one week; numbers to management Day 3. Streamlined accounting processes; rebuilt accounting team • OTC process reengineering and automation. Implemented Esker OTC system and customer portal. DSO improved by 35 days • Facilitated 22% YoY revenue growth. Increased dividend cash flow to BRK by over 30%. Manage team of 35 PULMONX CORPORATION (LUNG), Redwood City, CA-Vice President-Controller 2019-2020 • Hired by late-stage pulmonary device manufacturer to lead company through S -1 process & to be public company Controller • Hired and built public company accounting team; took close from annual hindsight to 7 day monthly close in 6 months • First S-1 filing done within 5 months of hire and 2019 FY filing done in 54 days with public flip on February 28, 2020 • Minimal SOX deficiencies (non-reportable); IPO placed on hold due to COVID-19 • Developed full absorption cost accounting system for company’s Redwood City manufacturing plant SILEGO TECHNOLOGY (SLGO), Santa Clara, CA Vice President – Corporate Controller 2014- 2019 • Led late-stage semiconductor company through restatement process to complete confidential S-1 filing • Cured 18 MW over 18 months allowing Silego to file with zero MW’s • Led effort to early adapt Topic 606, Revenue Recognition within S-1 filing process; prepared road-show and IB packages • Drove implementation of Microsoft Dynamics AX ERP system • Built multinational finance team of 12 in the US, Taiwan, Ukraine and PRC; set up offshore tax structure (ETR 5%) • Developed audit worthy cost accounting reporting process, timely close and budgeting processes • Sale to Dialog Semi. (DLG.DE) for $300M; retained for integration as Top 25 performer. Achieved 99% of deal potential • Retained by Dialog to lead Finance for their World-Wide Operations Group (Manufacturing, IT, Quality, Procurement.)

SOAProjects, Mountain View, CA; Technical Accounting Consultant (before/after Callidus) 2011- 2014 Positions included: 1) supporting a Singapore IPO IFRS filing for a US based Medical Device Firm; 2) supporting acquisition of two public company REIT’s with $18B market cap; 3) Interim Controller position supporting a QAD ERP installation and UK product launch for a pre-IPO medical device co; 4) Interim Controller for a public military contractor; 5) SEC filings for a semiconductor firm

CALLIDUS
CLOUD (CALD), Pleasanton, CA; Vice President – Corporate Controller 2011 – 2013 • Managed finance staff of 20 for an $100M+ public SaaS company directing all areas of accounting including revenue recognition
• Performed financial due diligence and led integration for eight international acquisitions (combined purchase price of $40M+) in Serbia, India, New Zealand, and the UK; set up 200 person “in-sourced” entity in India saving company $5M in OPEX • Implemented financial segment of NetSuite ERP system

CORSAIR COMPONENTS (formerly CORSAIR MEMORY), Fremont, CA 2009-2010 Vice President – Corporate Controller
Recruited to restructure the worldwide financial organization of a $400M late-stage electronics company with sales in Europe, U.S., Russia, and Latin America and manufacturing in Taiwan and China. • Reduced audit costs by $1.1M (65%); Remediated four MW’s enabling Company to become IPO-ready • Shortened close from sixteen to four days resulting in a streamlined process for reporting • Rebuilt the financial staff through the recruitment of six key hires and termination of non- performers; managed a staff of eighteen in four worldwide locations
• Coordinated the set up of the offshore trading company in Hong Kong and logistics center in South China • Signed off as principal accounting officer on Company’s S-1 filings which were completed on schedule • Revamped revenue process resulting in removal MW and an overall reduction in delinquent chargebacks of $2M

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DANIEL BENAS Page Two

MONOLITHIC POWER SYSTEMS (MPWR), San Jose, CA; Vice President – Corporate Controller 2006 – 2009 Recruited to turn around the financial organization of a $180M publicly traded firm facing numerous legal challenges and de- listment from NASDAQ.
• Directed the successful 3-year restatement within two months of hire which enabled the company to avoid being de-listed • Successfully took company through Sarbanes-Oxley (SOX) remediation curing five material weaknesses and established normal financial operations with timely closes
• Rebuilt the financial staff with the recruitment of 8 key hires and termination of non-performers; managed WW staff of 20 • Set up operations and hired financial staff for new manufacturing facility in Chengdu

INFINERA CORPORATION (INFN), Sunnyvale, CA; Vice President – Finance/Corporate Controller 2001 – 2006 Employee number 37 in a telecom networking manufacturer utilizing proprietary semiconductor technology. Company created the first digital optical network reducing product size by 2/3 and cost by 50% • Secured a $30M debt package with Silicon Valley Bank. Package also contained working capital financing • Created two asset-backed loan packages totaling $10M which reduced operating burn by 10% • Raised $167M in Series B-E financing from venture, corporate, and international government investors • Coordinated auction procurement tasks enabling Indium Phosphide Fab to be built for $15M • Established an Indian subsidiary to perform software development saving $8M annually utilizing a government -sponsored tax holiday program; led site selection in Bangalore
• Drove turnkey outsource-manufacturing process saving $10M+/yr. • Involved in setting up initial $140M revenue transaction with Level 3 which led to IPO • Led team that implemented Microsoft-Great Plains ERP system in preparation for IPO • Managed Human Resources, IT and Facilities departments in 2003-2004

CYPRESS SEMICONDUCTOR (CY), San Jose, CA 1989 – 2001
Vice President – Corporate Finance (1999 – 2001)
Led a 42-person team in a $1.3B corporation. Managed Internal, External and SEC Reporting, Consolidations, Financial and Strategic Planning, Shared Services and Financial IT Systems. Coordinated the annual audit as well as interfaced with audit committee. Oversaw preparation for Board of Director’s meetings and analys t conferences. • Led overhaul of capital acquisition & planning processes resulting in the successful completion of over $1B in capital projects • Negotiated and integrated ten successful acquisitions (totaling $300M annual revenue) • Implemented new versions of Oracle and Ariba Travel and Expense system • Drove process improvements in finance transactional functions that enabled successful transfer to Cypress Philippines Director – Worldwide Sales and Marketing Finance (1998 – 1999) • Directed all financial planning and accounting activities in support of Sales & Marketing worldwide including revenue and distributor accounting, commissions, and A/R
• Led multiple cross-functional process re-engineering teams including automating and streamlining the consignment process which led to channel growth of $60M in one year
• Simplified and automated the Distributor Accounting system saving the Company $3M per year in false debits Finance Director – Worldwide Manufacturing (1996 – 1998) • Directed financial planning and accounting for all manufacturing entities - $16M improvement in profitability during tenure • Set up Finance department for the first 100% Cypress-owned Asian plant in the Philippines; part of site development team • Transferred most manufacturing, cost accounting, and transactional activities to the Philippines saving $400K /year Controller, Production Control Manager and Business Unit Manager-Datacom Division (1989-1995) • Member of management team that grew division from $6M to $250M becoming the most profitable in CY • On team that did initial offshoring at CY moving to assembly and test facilities in Thailand dropping product costs over 50% • Led production control team meeting or exceeding forecasts for eight consecutive quarters • Ran EOL business unit, profitably harvesting end of life products XEROX CORPORATION (XRX), Fremont and Santa Clara, CA 1982 – 1989 Senior Auditor /Manuf acturing Financial Planning Manager/Memorywriter Controller OCCIDENTAL PETROLEUM (OXY), Houston, TX – Treasury 1981 – 1982 LAVENTHOL AND HORWATH CERTIFIED PUBLIC ACCOUNTANTS (Size-#10 worldwide) 1980 – 1981

EDUCATION / ACCREDITATIONS
UCLA – ANDERSON SCHOOL OF MANAGEMENT, Los Angeles, CA, MBA – Finance UNIVERSITY OF CALIFORNIA (HAAS), Berkeley, CA, B.S., Business Administration – Honors CERTIFIED PUBLIC ACCOUNTANT – California (active) and Texas (active) PLATINA NETWORKS- Finance Technical Advisor- Santa Clara, CA-Series A networking company 2015-Present ATLAS MAGNETICS- Finance Advising CFO—Reno NV, L’viv-Ukraine—Series A semiconductor company 2021-Present Item 3
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Architectural Review Board Application
Submitted on 8 April 2025, 12:49am
Receipt number 81
Related form version 15
Name Danny Cao
Cell Phone Number
Home Phone Number
Email Address
Are you a Palo Alto resident? No
Address
City San Leandro
Postal Code 94579
Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members?
No
Are you available and committed to complete the term applied for?
Yes
Fair Political Practices
No
Excluding your principal residence, do you or your spouse own real property in Palo Alto?
No
How did you learn about the vacancy on the Architectural Review Board?
Email from the City
Personal Information
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Consent to Publish Personal Information on the City of Palo Alto Website Occupation Architectural Designer
Please list your relevant education, training, experience, certificates of training, licenses, and professional registration.

If describing work experience, please include
company/employer name and occupation.

As an architectural designer with 15 years of experience, I bring a wealth of expertise in designing and constructing diverse projects, from aviation and tall towers to commercial, multi-family, and single-family custom residential developments. My educational background is rooted in the esteemed California Polytechnic State University in San Luis Obispo.

Throughout my career, I have had the opportunity to collaborate with renowned firms such as PGAL, AGPS, BDE, and Woods Bagot.

Currently, I am part of the talented team at Collaborative Design Studio in Dublin, where I continue to push the boundaries of innovative design and construction. My extensive experience has equipped me with a unique understanding of the complexities and nuances of various project scales, allowing me to deliver well-rounded and effective solutions that meet the needs of clients and stakeholders alike.

Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held.

Through volunteering, I've had the privilege of designing and developing construction documents for various places of worship, including churches and Buddhist temples, both locally in the Bay Area and internationally. This experience has not only broadened my understanding of diverse faith communities but also allowed me to apply my skills in a meaningful way, contributing to the creation of sacred spaces that serve as hubs for spiritual growth and connection. By working on these projects, I've gained insight into the unique needs and requirements of each community, honing my ability to craft thoughtful and functional designs that cater to their specific needs.

Please select all that apply to you. Architect, landscape architect, building designer, other design professional
Personal and Job Experience

1. Why are you interested in serving on the Architectural Review Board and what experience would you bring to the position?
I'm excited about the opportunity to serve on the Architectural Review Board because I'm passionate about preserving and enhancing the aesthetic and cultural character of our community. As an architectural designer with 15 years of experience, I bring a deep understanding of design principles, land use regulations, and community engagement.

Throughout my career, I've worked on various projects, from commercial developments to custom residences, and I've developed a keen eye for balancing growth with preservation. My experience volunteering has also given me insight into the importance of respecting diverse architectural styles and community needs.

2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it.

One issue that recently caught my attention was a proposal for a new mixed-use development in a historically significant neighborhood, which aimed to balance preservation and innovation.

I'm drawn to this issue because it highlights the complexities of navigating competing interests in urban development. On one hand, preserving the neighborhood's historic character is crucial for maintaining its unique identity. On the other hand, incorporating modern amenities Application Questions
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and sustainable design elements can enhance the area's livability and appeal.

What resonates with me is the opportunity to find creative solutions that honor the past while embracing the future. As an architectural designer, I've worked on projects that blend old and new, and I believe that thoughtful design can reconcile seemingly conflicting goals. I'm interested in exploring how the Board can facilitate a discussion that considers multiple perspectives, ultimately yielding a solution that benefits the community as a whole.

3. If you are appointed, what specific goals would you like to see the Architectural Review Board achieve, and how would you help in the process?
If appointed to the Architectural Review Board, I would like to see the Board enhance community character by ensuring new developments and renovations respect and enhance the unique character of our neighborhoods, while also promoting innovative and sustainable design solutions. I'd also like to see a balance between preserving historic buildings and allowing for thoughtful growth and development that meets the needs of our community.

To achieve these goals, I would work closely with community members, developers, architects, and city staff to ensure diverse perspectives are considered and decisions reflect the community's values and needs. I would provide thoughtful and constructive feedback on design proposals, drawing on my experience as an architectural designer and understanding of design principles and land use regulations. I would also help develop clear guidelines and standards that are easy to understand, providing a framework for consistent and fair decision-making.

4. Please identify a project (or projects) that you find to be examples of good architecture, and explain why. You may include samples, identify project addresses, or provide links.

One project that I find to be an example of good architecture is the de Young Museum in San Francisco's Golden Gate Park. Designed by architects Herzog & de Meuron, the building's design seamlessly integrates with its surroundings while also showcasing innovative and striking features.

The deYoung Museum's copper-clad exterior is a nod to the park's natural surroundings. The building's undulating copper walls and textured surfaces create a sense of movement and visual interest, and help blending the structure into the park's landscape.

What I find particularly compelling about the deYoung Museum is its ability to balance modernity with context. The building's bold design and innovative materials are thoughtfully integrated with the surrounding park, creating a harmonious relationship between architecture and nature. Overall, the deYoung Museum is a testament to the power of architecture to inspire, educate, and connect people with their environment.

Although I haven't had the opportunity to contribute to these projects, I'm eager to explore them further in my own time.
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If you'd like to provide any additional documents, please upload below.

Please confirm that you have read the Boards and
Commissions Handbook.

Yes
Signature Name of signatory: Danny Cao
Date Completed 04/08/2025
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Architectural Review Board Application
Submitted on 21 April 2025, 2:27pm
Receipt number 77
Related form version 15
Name David Hirsch
Cell Phone Number
Home Phone Number
Email Address
Are you a Palo Alto resident? Yes
Address
City Palo Alto
Postal Code 94301
Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members?
No
Are you available and committed to complete the term applied for?
Yes
Fair Political Practices
No
Excluding your principal residence, do you or your spouse own real property in Palo Alto?
No
How did you learn about the vacancy on the Architectural Review Board?
Community Group
Email from the City
Personal Information
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Palo Alto Weekly
City Website
Read the code, and check only ONE option below: I give permission for the City of Palo Alto to post to the City’s website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk.

Consent to Publish Personal Information on the City of Palo Alto Website Occupation Retired Architect
Please list your relevant education, training, experience, certificates of training, licenses, and professional registration.

If describing work experience, please include
company/employer name and occupation.

Harvard College BA Philosophy, The Cooper Union - non degree, Harvard Grad. School of Design - M Arch Registered Architect; New York State and Connecticut; Senior Urban Designer; Mayors Office of Development (MOD); Partner in several NYC Architectural Firms and founding partner of Urban Architectural Initiatives (UAI) from 1917-2026 responsible for many varied residential projects, educational facilities, community facilities and commercial street improvements.

Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held.

Pre-Palo Alto: Renovated brownstone in Park Slope neighborhood of Brooklyn, Y.Y.; Active in block association, then Park Slope Civic Council for various neighborhood improvements; Board member Prospect Park Environmental Center including overseeing renovation of Historic Tennis House; participated in application to NYC Landmarks Commission to qualify Park Slope as first first designated historic neighborhood; Palo Alto Assistant t consultants for consultants first study of Cubberley to create a coordinated new community facility and future school ; ARB member for two terms.

Please select all that apply to you. Architect, landscape architect, building designer, other design professional
Personal and Job Experience

1. Why are you interested in serving on the Architectural Review Board and what experience would you bring to the position?
I request the opportunity to serve a final term on the ARB. I believe my experience as the founder of an architectural firm in NY and previous experiences, especially my affprdab;e housing projects, civic buildings, educational facilities, historic structures, small commercial buildings and commercial street improvements has provided me with a deep understanding of the design and construction process. The two terms on the ARB has broadened this experience with the addition of the group consensus peocess.

One special additional professional experience in NYC was as a senior urban designer for the Mayor's Office of Development, which effectively created opportunities for the
restoration of failing commercial areas of the city. Fellow ARB member Peter Baltay and I agree that a development Office would significantly benefit to Palo Alto, especially as the city ought to be more pro-actively encouraging housing opportunities and neighborhood improvements in response to the Housing Element.

2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it.

A ten unit townhome development is proposed for a small section of the parking lot adjacent to Town and Country on Encina Avenue. Separately owned parcels surrounding this small development is a large parking lot Application Questions
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for T & C customers, There are presently no plans for the development of the immediately adjacent parking lots, In my opinion this project should be paused until a coordinated area plan is developed for the entire lot. The T & C principal spoke to this need and noted their interest in coordinating with the townhome developer, and yet my fellow Board members still voted to pass on this limited project. I did not. My opinion is that we must be responsible to the larger responsibility of the Housing Element as well as to recognize the limited and inappropriate location of the original townhome submission located in the midst of a parking lot, with inadequate open space and disruptive to the important community values of this historic quality of this excellent retail neighbor.

3. If you are appointed, what specific goals would you like to see the Architectural Review Board achieve, and how would you help in the process?
Our responsibility is often fairly simple, since many qualified architects are willing to cope with the complexity of the approval process and standard regulations for individual buildings to build here But the signifiant increase in housing requirements in response to the Housing Element requirements will likely cause larger, more complex multi- building developments. RHNA unit requirements relative to their likely impact throughout Palo Alto (25 buildings at 250 units each = 6,250 total units and at an average of 2.3 people per apartment, about a 22% increase in our total population) which means consideration of extensive additional physical services and possibly other community facilities.) Site and building planning in such potentially non-conforming overlay developments, based on the PTOD Review Process 18.34.060 (d) suggests pre-zoning ARB review at the preliminary design phase, prior to Planning Commission review per the Zoning Code. I believe this is a critical requirement.

4. Please identify a project (or projects) that you find to be examples of good architecture, and explain why. You may include samples, identify project addresses, or provide links.

St. Giorgio Margeroni on Venice's Grand Canal Arch. Palladio. The height of the Renaissance by the master of the Classical style.A hierarchy of scale to humble man in his quest for immorality. The chapel at Ronchamp France. Arch. Le Corbusier. The master of early 20th Century modernism -a painter, sculptor, architect created his boldest expression, a church roofed with a giant uplifted boat-like hull supported on battered walls with irregularly placed penetrations for beams of daylight to criss-cross the spare interior. The Capital of Bangladesh.

Arch. Louis Kahn. A layering of fortress-like forms with huge geometric cut-outs, symbolic statement for this formation of a new country. A Dutch school and residence. Arch. Aldo van Eyck. A repetitive hierarchy of roof forms and courts, a system of clustered educational and residential areas for group living with the purpose of creating individual and social awareness.for children with limiting social issues.
.
.

The Comp. Plan and the Zoning Code are an integral part of our analysis based on the Planning Department's inclusion in our bi-monthly packet.

The relevant zoning per project is also required on the submitted applicants drawings. The Comp Plan is especially important to understand the preferred nature of the entire Palo Alto community. The El Camino planning is in flux based on recent re-zoning, and this applies to major areas of San Antonio Road as well. CEQA issues are normally addressed by Planning. Density bonus's has become critical to advance the Housing Element. I have personally been made aware of the Secy. of the Interior's Historic Building requirements on several significant Historic Restoration projects for our NYC office. As the ARB representative, I worked with the consultants on the Objective Design Standards and our board was consulted on the SB9 Standards as well. I note the Downtown Guidelines and California Street Improvement Guidelines are presently being revised.
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If you'd like to provide any additional documents, please upload below.
5F96A2EB-20B6-4D08-8F6C-44E2DBA667E2_1_105_c.jpeg
08D62009-989F-47CD-B0A4-2156B6B5EC49_1_105_c.jpeg
80C86B60-F90F-4173-A81E-3908C966139A_1_105_c.jpeg
889C19AA-F484-4DDC-8035-16F1D8842B69_1_105_c.jpeg
Please confirm that you have read the Boards and
Commissions Handbook.

Yes
Signature
Date Completed 04/21/2025
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Architectural Review Board Application
Submitted on 30 April 2025, 5:18pm
Receipt number 93
Related form version 15
Name Grace Lee
Cell Phone Number
Home Phone Number
Email Address
Are you a Palo Alto resident? Yes
Address
City Palo Alto
Postal Code CA
Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members?
No
Are you available and committed to complete the term applied for?
Yes
Fair Political Practices
No
Excluding your principal residence, do you or your spouse own real property in Palo Alto?
Yes
How did you learn about the vacancy on the Architectural Review Board?
Email from the City
City Website
Personal Information
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Consent to Publish Personal Information on the City of Palo Alto Website Occupation Designer, Mentor, Volunteer
Please list your relevant education, training, experience, certificates of training, licenses, and professional registration.

If describing work experience, please include
company/employer name and occupation.

Master of Architecture
Master of City Planning
University of California, Berkeley

LEED AP
Former Vice President
Carrasco & Associates Architects
Former Lecturer in Architecture
Stanford University
University of San Francisco
University of California, Berkeley
Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held.

Mentor/college track coach of architectureundergraduate major Cal Poly San Luis Obispo/Peninsula Bridge
Former Palo Alto Architectural Review Board member
Former Pre- Major Advisor, Stanford University
Please select all that apply to you. Architect, landscape architect, building designer, other design professional
Personal and Job Experience

1. Why are you interested in serving on the Architectural Review Board and what experience would you bring to the position?
I first moved to Palo Alto in the late 80s. My husband and I raised our now young adult daughters here. We are thankful for the neighborhoods, commercial districts, parks and libraries.

I wish to contribute to the City’s efforts to plan for a sustainable future, while preserving the history and promoting a healthy environment.

2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it.

I find myself interested in practically all of the ARB agenda items, minor and major. l am curious to learn about and support the history, design and evolution of a space.

I was drawn to recent discussions of a proposed fire station, as well as housing; both institutional and multifamily land uses shape the structure of a neighborhood.

3. If you are appointed, what specific goals would you like to see the Architectural Review Board achieve, and how would you help in the process?
I can recall my experience serving on the board in the past. I have participated in past ARB retreats and design awards.

I hope that the ARB participates in an effective onboarding process, carefully review submittals, listen attentively to community comments, Application Questions
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and be prepared to communicate effectively in collaboration with fellow board members.

4. Please identify a project (or projects) that you find to be examples of good architecture, and explain why. You may include samples, identify project addresses, or provide links.

Palo Alto Children’s Library
Lucie Stern Community Center
Oak Court Apartments
Hana Haus, former Varsity Theater

As both a design professional and former ARB member, I have reviewed these documents.

If you'd like to provide any additional documents, please upload below.

Please confirm that you have read the Boards and
Commissions Handbook.

Yes
Signature Name of signatory: Grace Lee
Date Completed 04/30/2025
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Architectural Review Board Application
Submitted on 1 April 2025, 12:56pm
Receipt number 78
Related form version 15
Name Khelan Bhatt
Cell Phone Number
Home Phone Number
Email Address
Are you a Palo Alto resident? Yes
Address
City Palo Alto
Postal Code 94301-1055
Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members?
No
Are you available and committed to complete the term applied for?
Yes
Fair Political Practices
No
Excluding your principal residence, do you or your spouse own real property in Palo Alto?
No
How did you learn about the vacancy on the Architectural Review Board?
Community Group
Personal Information
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Consent to Publish Personal Information on the City of Palo Alto Website Occupation Technology Entrepreneur / Founder
Please list your relevant education, training, experience, certificates of training, licenses, and professional registration.

If describing work experience, please include
company/employer name and occupation.

I hold a Bachelors degree in Computer Science with honors from Northeastern Illinois University. I also obtained my Masters degree in Computer Science with a Machine Learning concentration from the Illinois Institute of Technology, as well as my M.B.A. from the University of Chicago. I have been focused on the intersection of technology, design and business for over 20 years, with an emphasis on applied high technology, especially Artificial Intelligence and Cybersecurity. I was formerly a Chief Information Security Officer for Plume Design, Inc. in Palo Alto, and have worked at Cisco, IBM, Gap, Inc., Anheuser-Busch InBev and with hyper-growth startups. I currently am founder of a startup that uses AI agents to fight fraud in B2B commerce. I am also an experienced real estate investor since 2005, having redeveloped, owned and operated multi-family properties and single family homes in my native Chicago as well as across the San Francisco Bay area.

Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held.

I am a Cub Scout den leader (2024-2025 Palo Alto Pack 57), a youth volunteer at Addison Elementary school YMCA/Project Cornerstone (2020-2025), and have previously mentored/volunteered for the Boys and Girls Club of the Peninsula (2018-2019). I am proud of the city I live and work in, Palo Alto, and desire to contribute to the long-term development, stability and desirability of our community.

Please select all that apply to you. None
Personal and Job Experience

1. Why are you interested in serving on the Architectural Review Board and what experience would you bring to the position?
Since 2005, I have been a real estate re-developer, investor and owner, both in my native Chicago, as well as in California and internationally.

While it has been a passive investment for me alongside my career in high technology, I stay abreast of trends in housing, development, sustainability and other factors. Because housing and real estate are such fundamental aspects of society, and because I have a unique perspective spanning real estate and technology, I am seeking this position on the ARB as a way to give back to my community, learn from my fellow stakeholders, and hopefully apply technology to enhance and improve the experience and outcome for all stakeholders.

2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it.
70 Encina Avenue, near Town & Country Village, interested me, as it illustrated the various, often competing, interests of stakeholders and the importance of having a well-defined process as well as sufficient time and communications for multiple voices to not only be heard, but have an opportunity to think and collaborate on a mutually favorable outcome.

That the developer heeded concerns about density and traffic, while ensuring the project was economically viable, is a positive outcome.

3. If you are appointed, what specific goals would you like to see the Architectural Review Board achieve, and how would you help in the process?
If appointed, I would like to see the ARB continue to meet its primary responsibilities of reviewing the design of new construction and changes to existing commercial, industrial and multi-family properties while Application Questions
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balancing obligations of harmonious development, desirable use of land and an emphasis on aesthetics. My contribution would be to provide my unique voice as a multi-family developer, real estate investor, technology entrepreneur and current property owner and resident of Palo Alto. I feel there are many opportunities to apply advanced technology, especially artificial intelligence, to the ARB and help us meet our goals in an efficient, transparent and balanced manner. Palo Alto has an opportunity to continue to lead across our region and even the world by adapting and applying certain cutting edge advanced technologies, and with my unique background, I am confident I can make a meaningful contribution to the team.

4. Please identify a project (or projects) that you find to be examples of good architecture, and explain why. You may include samples, identify project addresses, or provide links.

Growing up in the City of Chicago, I was spoiled for choice when it comes to fantastic architecture. I lived in the literal shadows of giants Frank Lloyd Wright, Louis Sullivan, Helmut Jahn and Rem Koolhaas and contemporaries like Jeanne Gang. I studied on the campus of Koolhaas- designed Illinois Tech. I was a former condo owner at 600 N. Fairbanks Ct. in Chicago, which was designed by Jahn. I almost bought a 55th floor unit of Gang's famous Aqua Tower. My parents took me to Oak Park to see Frank Lloyd Wright's famous designs. Closer to home in California, I am impressed by Joseph Eichler's mid-century modern homes for the masses. Many of my friends and neighbors live in Palo Alto's famed Eichlers, and I have tried several times (unsuccessfully!) to buy an Eichler over the years. Walking distance from my current home on High Street is the Joseph Bellomo designed 102 University Ave. I have never been inside, but I admire the rooftop gardens and the undulating facade.

I am familiar with the zoning code, comprehensive plan and permit streamlining act. I have applied for and obtained city of Palo Alto permits (none subject to ARB, however) at my former home at 526 Seneca Street and current home at 233 High Street.

If you'd like to provide any additional documents, please upload below.

Please confirm that you have read the Boards and
Commissions Handbook.

Yes
Signature Name of signatory: Khelan Bhatt
Date Completed 04/01/2025
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Architectural Review Board Application
Submitted on 30 April 2025, 6:36pm
Receipt number 79
Related form version 15
Name Marton Jojarth
Cell Phone Number
Home Phone Number
Email Address
Are you a Palo Alto resident? No
Address
City Mountain View
Postal Code 94040
Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members?
No
Are you available and committed to complete the term applied for? Yes Fair Political Practices
No
Excluding your principal residence, do you or your spouse own real property in Palo Alto?
No
How did you learn about the vacancy on the Architectural Review Board? Email from the City Personal Information
Read the code, and check only ONE option below: I give permission for the City of Palo Alto to post to the City’s website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk.

Consent to Publish Personal Information on the City of Palo Alto Website Personal and Job Experience
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Occupation Building designer
Please list your relevant education, training, experience, certificates of training, licenses, and professional registration. If describing work experience, please include company/employer name and occupation.

I am the President of Mindframe Inc (www.mindframe.live), a design-build firm operating primarily in Palo Alto. I have been designing and constructing single family homes in Palo Alto since 2016 and have completed many new construction and remodel projects, including Individual Reviews. Prior to launching my firm, I was an executive at Equinix Inc. and Google Inc. I hold a General Contractor license in California, as well as an MBA degree from Harvard Business School, a Master of Science in Industrial Relations from Oxford University (UK) and PhD in Economics from the University of St Gallen (Switzerland).

Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held.

I am member of The Nova Vista Symphony Orchestra in Sunnyvale.

Please select all that apply to you. Architect, landscape architect, building designer, other design professional

1. Why are you interested in serving on the Architectural Review Board and what experience would you bring to the position?
I lived in Palo Alto between 2008 and 2022 and I continue to work in Palo Alto on a daily basis. I am excited to help shape Palo Alto in a way that preserves its heritage, celebrates its beauty and sets it up for future success.

I am a designer and builder of single family homes, and most of my projects are in Palo Alto. I am well versed in Palo Alto’s approach to planning, zoning and building code. I am familiar with Palo Alto’s Planning & Development Services and interact with Planning and Building staff regularly. Prior to becoming a designer, I was working as an executive in various tech companies, most recently at Google Inc.

Thanks to this experience, I can help contribute a business perspective to the ARB.

I would like to use this diverse background to act as a helpful bridge between the architecture profession, developers, and City staff.

2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it.

The ARB played a key role in the development of the Objective Design Standards for SB9 projects. The implications of SB9 have been a matter of keen interest of most of my clients ever since 2021. Almost every family who is considering constructing a new home in Palo Alto wants to know about SB9. Initially, it was not easy to work with these questions as the rules were new and difficult to apply to most situations. The 2023 permanent ordinance made things much clearer and more flexible. With the 2024 Objective Design Guidelines, the conversations about SB9 have become straightforward. I was not personally involved in the study sessions or the focus group, but I was aware of them and it is clear that the ARB has taken its role seriously to collect feedback from key stakeholders. It was very successful in helping the City adjust its rules and help to balance the need for housing development while maintaining neighborhood character.

3. If you are appointed, what specific goals would you like to see the Architectural Review Board achieve, and how would you help in the process?
As a member of the ARB, I would like to advocate for developments that are architecturally innovative and artistically creative, rather than just satisfy the objective design guidelines. I would like innovation and art to still respect the architectural heritage of the city, which includes the enhanced utilization of local materials, native plants, and environmental sustainability, including aspects such as bird safety and night lighting.

I am interested in helping the ARB to continue to provide more proactive guidance to developers on what is expected and desired from new projects. More publicity around the Design Awards program could be helpful, or publications showcasing examples of excellent design in Palo Alto.

I would like to support the Coordinated Area Plans and collaborate with other city departments and other boards and commissions to expanding Palo Alto’s resident housing and businesses in a way that is architecturally attractive and enhances the appeal of Palo Alto.

4. Please identify a project (or projects) that you find to be examples of good architecture, and explain why. You may include samples, identify project addresses, or provide links.

The development at 2500 El Camino Real offers many examples for what good architecture in Palo Alto looks like. My explanation for this choice is summarized and illustrated with pictures in the following document:
https://docs.google.com/document/d/1nRijdbcnDaZgEIzn0_mastba7FtR4CNLYcA0vBFC usp=sharing

5. Architectural Review Board Members work with the documents listed below. If you have experience with any of these documents, please As part of my work as a building designer, I work regularly with the Zoning Code, The Palo Alto Comprehensive Plan, various neighborhood design guidelines Application Questions
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describe that experience. Experience with these documents is not required for selection, but will help you better understand the work of the board.
(Eichler, Professorville), the Single-Family Zoning Technical Manual, Individual Review Guidelines, Fence Code and the Historic Review Guide. I am very familiar with these documents.

If you'd like to provide any additional documents, please upload below.

Please confirm that you have read the Boards and Commissions Handbook.

Yes
Signature Name of signatory: Marton Jojarth
Date Completed 04/07/2025
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Architectural Review Board Application
Submitted on 29 April 2025, 9:56pm
Receipt number 92
Related form version 15
Name Matthew Kelly
Cell Phone Number
Home Phone Number
Email Address
Are you a Palo Alto resident? No
Address
City Menlo Park
Postal Code 94025
Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members?
No
Are you available and committed to complete the term applied for?
Yes
Fair Political Practices
Yes
Excluding your principal residence, do you or your spouse own real property in Palo Alto?
No
How did you learn about the vacancy on the Architectural Review Board?
Email from the City
Personal Information
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Consent to Publish Personal Information on the City of Palo Alto Website Occupation Architect
Please list your relevant education, training, experience, certificates of training, licenses, and professional registration.

If describing work experience, please include
company/employer name and occupation.
- Education: Bachelor of Arts (major- Architecture, Lehigh '05); Master of Architecture (Penn, '08);
- Licensed architect in CA since 2026; LEED AP BD+C
- Principal/partner at Huang Iboshi Architecture (since 2010) Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held.

Volunteer coach in Alpine Little League since 2023; volunteer at local church
Please select all that apply to you. Architect, landscape architect, building designer, other design professional
Personal and Job Experience

1. Why are you interested in serving on the Architectural Review Board and what experience would you bring to the position?
I am interested in using my experience as an architect to help improve my community beyond individual private, residential clients. I have worked on projects across several municipalities in the Bay Area (including Palo Alto) over the past 15 years. I would bring my professional insights as an architect and my personal experience as a father of two school-age children. I want to do my part to ensure the best possible future for my children and families within the community.

2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it.

One issue I'm interested in is the implementation and adoption of the Housing Element. There is clearly an urgent need for more housing and I would be eager to be part of the process. I'm also interested in bringing more life to downtown areas (e.g., University Avenue, California Avenue), specifically foot traffic. I have lived in cities of all sizes and I love seeing downtown spaces fully activated.

3. If you are appointed, what specific goals would you like to see the Architectural Review Board achieve, and how would you help in the process?
I would like to see more multi-family housing projects that the City can be proud of, and the design of which would be models for other municipalities. There is so much design talent in the Bay Area, yet I see so many projects built in which good design seems to be an afterthought.

4. Please identify a project (or projects) that you find to be examples of good architecture, and explain why. You may include samples, identify project addresses, or provide links.

I am very impressed with Springline (https://springline.com/) in Menlo Park. I like that there is a generous sidewalk on El Camino and that there are multiple access points to the site. The scale feels very comfortable, though I would have liked to see an extra story or two to provide more housing units. More public gathering space is always welcome and there is a great deal here. While the Mission Style has been overused on all kinds of project types over the years, it is applied tastefully here and is appropriate for Menlo Park. This project is not trying too hard to be something it's not, and I think it's very successful as a result.

Application Questions
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Architectural Review Board Application
Submitted on 21 April 2025, 5:13pm
Receipt number 84
Related form version 15
Name Naveen
Cell Phone Number
Home Phone Number
Email Address
Are you a Palo Alto resident? No
Address
City Fremont
Postal Code 94539
Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members?
No
Are you available and committed to complete the term applied for?
Yes
Fair Political Practices
No
Excluding your principal residence, do you or your spouse own real property in Palo Alto?
No
How did you learn about the vacancy on the Architectural Review Board?
City Website
Personal Information
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Read the code, and check only ONE option below: I give permission for the City of Palo Alto to post to the City’s website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk.

Consent to Publish Personal Information on the City of Palo Alto Website Occupation Architect/Urban Planner
Please list your relevant education, training, experience, certificates of training, licenses, and professional registration.

If describing work experience, please include
company/employer name and occupation.

Masters in Urban Planning, Texas A&M, College Station
Bachelors of Architecture, RVCE, Bangalore, India
LEED Accredited Professional (LEED AP)
Currently serving as a Senior Project Manager for the City of Mountain View, California, I specialize in public infrastructure and civic facility projects. My professional background spans both public agencies and private firms, with prior leadership roles at several well-regarded multidisciplinary architecture and engineering firms.

Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held.

Historical Architectural Review Board Member, City of FremontCity of Fremont, Sep 2024 - Present · 8 mos
Please select all that apply to you. Architect, landscape architect, building designer, other design professional
Personal and Job Experience

1. Why are you interested in serving on the Architectural Review Board and what experience would you bring to the position?
I’m interested in serving on the Architectural Review Board because I’m committed to supporting and enhancing the design excellence that characterizes Palo Alto. With over 20 years of experience in the architecture industry—spanning both public agencies and private firms— I bring a depth of design and construction experience. Combined with my graduate degree in Urban Planning, I offer a well-rounded perspective that considers both design excellence and urban context.

2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it.

The public hearing for the 70 Encina Avenue Housing Project (24PLN- 00095) on February 6, 2025, was particularly engaging. The topic of rezoning for housing has become increasingly prominent across California in response to the ongoing housing shortage and the recent adoption of updated Housing Elements. I found the board’s discussion and recommendation both thoughtful and encouraging.

3. If you are appointed, what specific goals would you like to see the Architectural Review Board achieve, and how would you help in the process?
If appointed, I would aim to help the Architectural Review Board achieve several key goals: promote thoughtful and sustainable growth, facilitate meaningful public engagement, and support applicants in meeting Palo Alto’s high standards for design excellence.

4. Please identify a project (or projects) that you find to be examples of good architecture, and explain why. You may include samples, identify project addresses, or provide links.

Palo Alto is home to several examples of strong architecture, but my top pick would be the recently completed Stanford Center for Academic Medicine by HOK. The building’s thoughtful massing, clean design elements, and carefully selected materials complement the surrounding campus architecture. Additionally, it offers a variety of outdoor spaces that take full advantage of the California climate, enhancing both Application Questions
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functionality and user experience. Here is a link to project - https://www.hok.com/projects/view/stanford-university-school-of- medicine%E2%80%AFcenter-for-academic-medicine/

I am currently working with a consultant to obtain CEQA approval for a new Public Safety Building for the City of Mountain View. In this role, I am assisting the City by reviewing and providing feedback on CEQA documents, supporting the public noticing process, and coordinating with the Planning Department to gather input and facilitate approval.

In my current role as a board member of the Fremont Architectural Review Board, I regularly reference the Secretary of the Interior’s Standards when reviewing projects with historical significance to ensure they meet established preservation guidelines and compliance requirements.

If you'd like to provide any additional documents, please upload below.

Please confirm that you have read the Boards and
Commissions Handbook.

Yes
Signature Name of signatory: naveen govind
Date Completed 04/21/2025
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Architectural Review Board Application
Submitted on 25 January 2025, 9:44am
Receipt number 71
Related form version 15
Name Sema Yavuz
Cell Phone Number
Home Phone Number
Email Address
Are you a Palo Alto resident? Yes
Address
City Palo Alto
Postal Code 94301
Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members?
No
Are you available and committed to complete the term applied for?
Yes
Fair Political Practices
No
Excluding your principal residence, do you or your spouse own real property in Palo Alto?
No
How did you learn about the vacancy on the Architectural Review Board?
Palo Alto Weekly
Personal Information
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Consent to Publish Personal Information on the City of Palo Alto Website Occupation Architect and Urban designer
Please list your relevant education, training, experience, certificates of training, licenses, and professional registration.

If describing work experience, please include
company/employer name and occupation.

USGBC LEED certified
CA architectural license
20 year experience as an architect and urban planner
Worked for Hillier, EYP up at East coast and had my own architectural firm in San Diego 2007-2013
Designed cities, office campuses, schools, homes, tenant improvement projects in US and internationally
I have been focusing on affordable housing investment, development and operations in Indiana since 2012 to present
I am mostly concerned and pationate about about affordability of housing to the young generation all in all through out the country Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held.

New to the community. Moved from San Diego end of December 2024 lived in Palo Alto 2018 to 2021
Please select all that apply to you. Architect, landscape architect, building designer, other design professional
Personal and Job Experience

1. Why are you interested in serving on the Architectural Review Board and what experience would you bring to the position?
Advocating affordable home. Sustainable urban and building practices also working and enhancing the urban design guidelines for downtown

2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it.

Affordable housing homes for everyone, mitigation of wild fires

3. If you are appointed, what specific goals would you like to see the Architectural Review Board achieve, and how would you help in the process?
Affordable housing, enhancing urban design guidelines with business success and affordability to all in mind. Promote diversity

4. Please identify a project (or projects) that you find to be examples of good architecture, and explain why. You may include samples, identify project addresses, or provide links.

Affordable housing using Modular’s and prefabricated components projects with mixed use component that promotes revitalization with sustainability in mind

5. Architectural Review Board Members work with the
documents listed below. If you have experience with any of I have experience developing/ designing Design guidelines , master planning
Application Questions
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these documents, please describe that experience. Experience with these documents is not required for selection, but will help you better understand the work of the board.

If you'd like to provide any additional documents, please upload below.

Please confirm that you have read the Boards and
Commissions Handbook.

Yes
Signature Name of signatory: Sema Yavuz
Date Completed 01/23/2025
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Architectural Review Board Application
Submitted on 24 April 2025, 10:38am
Receipt number 90
Related form version 15
Name Yingxi Chen
Cell Phone Number
Home Phone Number
Email Address
Are you a Palo Alto resident? Yes
Address
City Palo Alto
Postal Code 94303
Do you have any relatives or members of your household who are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members?
No
Are you available and committed to complete the term applied for?
Yes
Fair Political Practices
No
Excluding your principal residence, do you or your spouse own real property in Palo Alto?
No
How did you learn about the vacancy on the Architectural Review Board?
Email from the City
Other: Current sitting Vice Chair - reapplying for position Personal Information
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If describing work experience, please include
company/employer name and occupation.

Licensed Architect in the State of California
LEED Accredited Professional
Work Experience:

Y. Chen Architect, Principal, 2017 - present
Williams + Paddon Architects + Planners, Job Captain, 2011- 2017 Collaborative Design Studio, Architectural Intern, 2008- 2011 CHORA Architecture and Urbanism, Researcher and Designer, 2007 Education:

Master of Architecture, University at Buffalo, The State University of New York, 2008
Study Abroad Program - Henry Van de Velde Institute in Antwerp, Belgium, 2007
Bachelor of Architecture, Beijing University of Technology, Beijing, China, 2006
Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held.

Currently Vice Chair on the Palo Alto Architecture Review Board Committee member, AIA (American Institute of Architects) Silicon Valley 2018 Design Awards
Committee member, AIA Silicon Valley 2018 and 2019 Home Tour Please select all that apply to you. Architect, landscape architect, building designer, other design professional
Personal and Job Experience

1. Why are you interested in serving on the Architectural Review Board and what experience would you bring to the position?
To me, buildings represent a lasting commitment. As architects, we bear the responsibility of designing quality spaces where people live, work, and thrive. The role of the ARB is even more significant in this context, and I am eager to contribute to shaping a better community.

Before starting my own practice, I gained valuable experience working with two architectural firms, where I had the opportunity to participate in a diverse range of projects—from schools to hotel resorts, from ski lodges to car dealerships. With this experience, I hope to continue making a meaningful impact and help create environments that enrich our community.

2. Please describe an issue that recently came before the Board that is of particular interest to you and describe why you are interested in it.

Given the housing crisis we are facing, I am especially interested in finding a balance between supporting a healthy, growing city and preserving its unique character. One of the key challenges is addressing onsite circulation issues while also alleviating the pressure on road traffic across the city.

3. If you are appointed, what specific goals would you like to see the Architectural Review Board achieve, and how would I would like to see the ARB take an active role in reviewing large-scale urban planning for specific areas. Providing coordinated plans and Application Questions
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you help in the process? guidelines before the start of projects would be highly beneficial.

4. Please identify a project (or projects) that you find to be examples of good architecture, and explain why. You may include samples, identify project addresses, or provide links.

Our city is home to many quality buildings, and one of my favorites is the Junior Museum and Zoo. It serves as a great example of an inspiring and interactive space for children. Architecturally, the gable roof and clean forms offer a contemporary interpretation of the surrounding neighborhood.

I have reviewed all of these documents during my time on ARB If you'd like to provide any additional documents, please upload below.

Please confirm that you have read the Boards and
Commissions Handbook.

Yes
Signature Name of signatory: Yingxi Chen
Date Completed 04/24/2025
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City Council
Staff Report
From: City Manager
Report Type: STUDY SESSION
Lead Department: Administrative Services
Meeting Date: May 12, 2025
Report #:2505-4609
TITLE
FY 2026 Proposed Operating and Capital Budget - Finance Committee Update and Council Budget Discussion
This will be a late packet report published on May 8, 2025.

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City Council
Staff Report
From: City Manager
Report Type: STUDY SESSION
Lead Department: Public Works
Meeting Date: May 12, 2025
Report #:2503-4421
TITLE
Discussion of Strategies for the Use of Low Carbon Fuel Standard, Electric and Gas Cap and Trade, and Electric and Gas Public Benefits Revenues; CEQA Status - Not a Project

RECOMMENDATION
This is a study session item and no Council action is requested. Staff is requesting feedback on its strategy for the use of Low Carbon Fuel Standard, Electric and Gas Cap and Trade, and Electric and Gas Public Benefits revenues in the FY 2026 Budget. In addition, staff requests feedback on proposed general guidelines for future adoption regarding the use of Public Benefits revenues.

EXECUTIVE SUMMARY
The City, through operating a utility, receives and collects revenues designed to promote efficiency, conservation, and emissions reduction, and which can also be used in ways that reduce electric and gas rates or bills. These include revenues related to State-mandated participation by both the electric and gas utilities in the Western Climate Initiative Cap and Trade Program (Cap and Trade), the electric utility’s participation in the State’s Low Carbon Fuel Standard Program, and mandated electric and gas utility spending on public benefits programs.

Each revenue source has its own regulatory constraints, but within those constraints Council direction has generally been to prioritize efficiency, conservation, and emissions reduction.

To date, these revenue sources have been used to buy renewable energy, fund low-income programs, deliver energy efficiency programs, and for building and vehicle electrification. While Cap and Trade revenues have been routinely utilized by PG&E and many publicly owned utilities to customers in the form of “climate credits”, Palo Alto has not historically used the funds in that manner. However, staff and the Utilities Advisory Commission currently recommend use of $1.6 million for a one-time climate credit in FY 2026 to mitigate the impact of proposed gas rate increases on residential gas customers.

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The City is completing a Sustainability and Climate Action Plan (S/CAP) Funding Study to develop potential strategies for scaling up building and vehicle electrification in line with the S/CAP goal of reducing emissions 80% from 1990 levels by 2030 (80x30 goal). Discussions on these strategies will take place with the Climate Action and Sustainability Committee, other Committees or Commissions, and the full Council throughout 2025. This study session item will support discussions of longer-term commitments of these revenue sources for renewable energy procurement to meet State RPS mandates, climate programs, rate and bill reduction, and other utility purposes.

For the FY 2026 budget, staff is proposing to continue spending on renewable energy and energy efficiency, and to expand building and vehicle electrification program spending for one year in support of Council Climate priorities and the S/CAP 2023-2025 Work Plan Climate work items. Staff is also recommending the addition of a one-year gas climate credit for rate relief.

Given the complexity of the current economic, budgetary, and policy environment and the need to balance community climate goals, utility rate affordability, and other community goals, staff is seeking to brief Council on this strategy as part of the FY 2026 budget process.

In developing these strategies staff noted the difference between the Cap and Trade and Low Carbon Fuel Standard revenue sources, which have formal Council policies adopted by resolution outlining uses of funds, and the Public Benefits funds, which do not. Spending for Public Benefits is determined by regular budget adoption and goal setting, but it would be helpful to establish policies to guide development of budget proposals going forward. Staff is seeking feedback regarding a proposal for formalizing the acceptable uses of Public Benefits revenue sources.

BACKGROUND
The City receives or collects special non-rate revenues related to several programs as part of its operations as a public utility:
•Cap and Trade: The City is allocated allowances as part of the State-mandated participation by its electric and gas utilities in the Western Climate Initiative Cap and Trade Program (Cap and Trade). The mandated sale of these allowances generates revenues (Electric and Gas Cap and Trade revenues).
•Low Carbon Fuel Standard: The City receives credits under the State’s Low Carbon Fuel Standard (LCFS) program for delivering electricity to electric vehicles (EVs) in Palo Alto. It auctions these credits to fossil fuel suppliers, who are required to buy them to fulfill program mandates.
•Public Benefits: The State mandates that electric utilities collect a surcharge equal to a fixed percentage of revenues (the Public Benefits surcharge) and use those revenues for specific public purposes. The State also requires gas utilities to provide certain types of public purpose programs if they want to avoid paying into a collective fund run by the California Energy Commission to provide those programs.

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These revenue sources are subject to various state laws and regulatory requirements and Council policies (summarized below and in more detail in Attachment A):
•Cap and Trade revenues must be used for GHG emissions reduction programs (including renewable energy, efficiency, fuel switching, SF6 reduction, and more, with different opportunities for the gas vs. electric utility) or returned to ratepayers on a non-volumetric basis as a climate credit. Council has adopted a policy1 for the use of Cap and Trade revenues and has expressed a preference for emissions reductions over climate credits.
•LCFS revenues must be used for the benefit of current or future EV owners, with a particular focus on income-qualified EV owners. Council has adopted a program2 for the use of LCFS revenues focused heavily on education and outreach and on multi-family EV charging.
•Public Benefits revenues must be used for electric or gas efficiency, research and development, low-income programs, and may be used to buy renewable energy for the electric utility. Council has approved spending plans for Public Benefits revenues and has expressed policy goals through the adoption of energy efficiency goals and local solar plans. However, no general statement of policy preference exists for Public Benefits revenues as exists for Cap and Trade and LCFS revenues.

Attachment A summarizes the regulatory requirements, Council policies, the history of policy adoption and approved uses of revenues, and examples of allowable uses of revenues.

Historically, Council has approved the use of Cap and Trade, LCFS, and Public Benefits revenues to buy renewable energy, deliver energy efficiency and local solar programs, and for building and vehicle electrification, as shown in Attachment B. Challenges through the pandemic have resulted in a slower spend of some (but not all) of these funds than planned resulting in some increased reserve levels. However, the programs and activities anticipated for sustainability and climate actions far exceed these funds in total, which is what the long term funding strategy seeks to look into for sustainable funding sources. Some of these funds must also be spent within 10 years of collection, which is a consideration for Gas Cap and Trade funds in particular.

1 Resolution 10077, October 3, 2022, Resolution of the Council of the City of Palo Alto Amending the City’s Policy on the Use of Freely Allocated Allowance Under the State's Cap-and-Trade Program and Authorizing the City Manager to use $1.25 million from the Gas Utility Cap and Trade Reserve for the Advanced Heat Pump Water Heater program - also see Attachment A for more detail. 2 Resolution 9871, December 2, 2019, Resolution Amending Utility Rate Schedule E-15 (Electric Service Connection Charges), and Approving Updates to the City’s Program for use of Revenues from the Sale of Low Carbon Fuel Standard Credits – also see Attachment A for more detail Item 5
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ANALYSIS
Strategy for FY 2026 Budget Process
There are several community priorities these revenues could be helpful in advancing:
•Achieving 80x30 and other S/CAP climate goals.
•Meeting or exceeding State Mandates on Renewable Portfolio Standard of 60% by 2030. •Implementing programs supportive of State and regional vehicle and building electrification regulations.
•Maintaining electric competitive utility rates for affordability and promoting fuel switching. •Advancing community goals, some of which are also emissions-reducing, such as municipal electrification or local resiliency.

FY 2026 Proposals for Use of Cap and Trade, LCFS, and Public Benefits Charge Reserves and Revenues
Staff has submitted budget and rate proposals in FY 2026 consistent with the following strategies:
•Focused climate spending on programs that are Council Priority Objectives and in the 2023- 2025 S/CAP Work Plan, with initial budgets large enough for scalable “proof of concept” with the recognition that staff may return to Council to request additional funds through budget amendments based on need and program effectiveness. •Continued funding of the City’s renewable portfolio from Electric Cap and Trade revenues, which helps maintain the City’s lower utility rates compared to surrounding cities, thereby improving the cost-effectiveness of electrification.
•A distribution of single year gas climate credits to gas residential customers (at a cost of $1.6 million). The proposed credit is recommended in the FY 2026 Gas Utility Financial Forecast by the Utilities Advisory Commission (UAC), and was reviewed by the Finance Committee on April 15, without action taken.

Staff is proposing a strategy focused on shorter-term proposals to allow discussions planned in 2025 on strategies for scaling up climate action to take place, in line with Council‘s 2025 Climate Action and Adaptation & Natural Environment Protection Priority Objective 28.

Preliminary results from the S/CAP Funding Study performed to support this objective are showing community electrification to be a net benefit, even on the accelerated time scales of the 80x30 and other S/CAP climate goals, though costs and benefits vary among customers, time frames, and equipment types.3 But various factors mean creativity will be needed to design programs to realize that net benefit. For example, the costs and the benefits are different depending on the technology and across different groups of community members.

Also, the savings in household expenses from electrified equipment are realized over time, 3 For more information, please see the April 4 Climate Action and Sustainability Committee report on this topic:
https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=7672&meetingTemplateType=2&comp iledMeetingDocumentId=13682
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while the up-front cost of the equipment can be higher than the cost of gas equipment replacements.

The S/CAP Funding Study has given staff the modeling tools needed to design creative program proposals, and staff intends to bring alternatives to policymakers over the coming year. But these programs may need significant funding to pilot. In the long-term, staff anticipates the need to design these programs to attract outside capital to cover the higher up-front costs of electrification improvements. But to prove the program models work, pilots would be needed with funding to cover the up-front costs.

Cap and Trade, LCFS, and Public Benefits are good sources of funding for pilot programs, and for meeting State-mandated Renewable Portfolio Standards without devoting General Fund money. Therefore, staff is following a strategy in the FY 2026 budget of balancing spending of these revenue sources, targeting climate programs, new renewable energy power purchase agreements, and short-term natural gas rate relief to give the City Council time to develop its priorities for Climate Action programs in the 2026-2027 time period. This approach also gives time to better understand the economic climate. With this information in hand, decisions about longer-term program commitments can be made through the FY 2027 budget process.

The following sections outline some of the potential opportunities and tradeoffs staff considered in developing its FY 2026 proposals organized in the following sections:
•Opportunities for climate programs to support 80x30 and S/CAP climate goals •Opportunities for State and Regional regulatory support •Opportunities for utility bill competitiveness
•Opportunities to support other community goals.

Investment levels in each of these choices are not binary decisions, rather a blend of opportunities could be pursued among the priorities though stability for customers and programs is something to consider. However, every mix of policy choices involves tradeoffs. In its FY 2026 budget proposal staff has attempted to strike a balance between these various goals, and will continue to do so in future fiscal year proposals.

Opportunities for climate programs to support 80x30 and S/CAP climate goals To -date, the City has been pursuing a three-phase strategy in scaling up climate action:
•First, run early pilots and do studies to support expanded pilots; •Second, run large pilots focused on early adopters; and •Third, use the lessons learned from large pilots to develop scalable programs to serve the majority of Palo Altans.

In the 2023-2025 Work Plan, the City focused on the first phase of the strategy, including studies and small-scale pilots, in areas like small and medium business electrification, major facility electrification, and affordable housing electrification. Larger-scale pilots have been Item 5
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conducted for early adopters in single-family building electrification (especially the 1000-unit Advanced Heat Pump Water Heater Pilot Program and the 150-unit Whole Home Electrification Program), and a multi-family EV charging program on track to achieve EV charging in buildings representing 10% of multi-family units in Palo Alto. These pilots help the City understand community decision-making, identify barriers like permitting and utility connections, create outreach strategies, and develop scalable financial models. The second phase larger pilots, costing between $5 million and $9 million, cover the incremental up-front installation costs for many early adopters, with long-term community benefits that offset some or all of these costs, some of which accrue to the City, partially offsetting the costs of the pilots. The programs aim to find financial strategies to attract outside capital, but until those strategies are proven, funding is needed for up-front costs. This could require $25 million to $40 million in funding through 2030.

In coming years, staff anticipates the need for advanced pilots in the areas of small and medium business electrification, major facility electrification, affordable housing electrification, public EV charging, and multi-family building electrification. Lessons learned from advanced pilots in one area are not necessarily directly transferrable to other areas, since different property owners have different ownership structures and uses for their buildings, the outreach strategies vary, the types of equipment in each building can differ, and the strategies for property maintenance can differ. In FY 2026, in line with Council priority objectives and the 2023-2025 S/CAP Work Plan, staff is proposing:
•A “proof of concept” advanced pilot for small and medium business rooftop HVAC electrification.
•Smaller pilots for major facility electrification and central space and water heating in multi- family buildings.
•Expansions of the advanced pilots for single-family building electrification and multi-family EV charging to move these programs closer to a scalable program design.

California Air Resources Control Board (CARB) has provided guidance on the use of LCFS funds; CARB is expected to provide guidance on Cap-and-Trade funds in 2026. It is worth noting that some of the funding sources discussed can also be used to achieve Mobility goals to ramp up participation in alternative transportation modes and achieve transportation emissions reductions. These funding sources could be useful for pilots in the areas of micromobility and promoting bicycling and walking based on studies currently being done in those areas by the Office of Transportation.

Opportunities for State and Regional regulatory support Two regulations have the potential to significantly accelerate vehicle and building electrification – Advanced Clean Cars II and the Bay Area Air District Zero NOx standards:
•The Advanced Clean Cars II regulation requires 100% of vehicle sales in California to be emissions free by 2035.

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•The Bay Area Air District’s Zero Nox standards come into effect in phases. At each phase, the sale of these appliances becomes prohibited in the Bay Area:
o2027: Residential-scale gas water heaters
o2029: Gas space heaters
o2031: Commercial-scale gas water heaters
Local agency support will help these mandates be successful, in the form of incentives, financing, and technical assistance due to the lower familiarity of the market with these technologies and the higher up-front cost. Examples of support include:
•Facilitating access to EV charging for multi-family residents, either publicly available or in multi-family parking lots. The costs of these chargers are significantly higher than in single- family homes and the logistics of installation are more complex. •Facilitating transformer upgrades for larger multi-family buildings either separately or as part of the multi-year grid modernization program.
•Providing help to homeowners and condo owners whose mandated building electrification projects are more complex. This could include technical assistance or incentives. •Providing assistance programs for those who cannot afford the increased cost of the electrified equipment.
•Financing the higher up-front costs for other homeowners may be desirable, with repayment being at least partially offset by long-term bill savings.

The cost of programs like the ones listed above is estimated to be in the range of $20 million to $30 million through 2030, though there is some overlap between these costs and the potential costs noted above for pilots to achieve the 80x30 and S/CAP climate goals.

Opportunities for utility bill competitiveness
Other agencies in the Bay Area deliver both utility services and climate programs: publicly owned utilities (POUs) and community choice aggregators (CCAs). Examples of local POUs include City of Alameda Municipal Power (AMP) and Silicon Valley Power (SVP), the electric utility for the City of Santa Clara. Nearby CCAs include Peninsula Clean Energy (PCE), Silicon Valley Clean Energy (SVCE), San Jose Clean Energy (SJCE), and Ava Community Energy, formerly East Bay Clean Energy. All of these agencies work to strike a balance between keeping bills competitive, enhancing customer programs, and reducing emissions, with different weighting on the two different types of efforts varying from agency to agency.

For the median Palo Alto electric utility customer, Palo Alto bills are lower than all other agencies in the Bay Area but one, ranging from 8% lower to 50% lower. SVP, which has a far larger share of revenue-generating industrial loads than other utilities, has lower rates. All utilities and CCAs except SVP, SJCE, and Ava maintain 100% carbon free electricity from renewable, hydroelectric, and nuclear sources in their base rates. SVP allocates its carbon free energy to its residents, who make up about 6% of its load, and its natural gas and unspecified Item 5
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market power to its commercial customers. Ava (previously East Bay Clean Energy) also purchases some market power from unspecified sources.

Table 1: Electric Bill Comparison
Agency
Est. Monthly Electric Bill
at Palo Alto Median
Electric Usage
Palo Alto Bill %
Higher or Lower
% Carbon Free
Energy
City of Palo Alto $83.73 100%
PCE $164.97 -49% 100%
SVCE $165.57 -49% 100%
AMP $91.27 -8% 100%
SVP $69.02 21% 100% (Res)
53% (Comm)
Ava $159.57 -48% 89%
PG&E $167.97 -50% 100%
Chart 1: Electric Bill Comparison
Most other Bay Area agencies are providing significant funding for climate programs. PCE, SVCE, and Ava maintain rates close to PG&E, above what is needed to recover their cost of providing energy, and part of this revenue is used to fund customer programs. Like Palo Alto, AMP has dedicated all of its Cap and Trade revenue and revenue from renewable energy credit exchanges for climate programs and purchases of renewable energy resources. SVP uses it for renewable energy resources, energy storage projects, customer rebates (solar, storage, EV charging incentives) and higher discounts to low-income customers and uses allowances to cover its emissions compliance requirements in a similar way that Palo Alto uses allowances to cover its gas utility compliance requirements. PG&E uses its public purpose funds for energy efficiency and building electrification, among other purposes. $0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
$180.00
City of
Palo Alto
PCE SVCE AMP SVP Ava PG&E
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If the City, rather than expending funding on climate pilots to advance 80x30 and S/CAP climate goals, instead focused on electric rate competitiveness and supporting State and regional regulations, there would be an opportunity to reduce rates about 2% through 2030, equal to about $1.67 per month on the median residential bill. Some of the funding sources that would need to be used for this reduction do not extend past 2030. Various State leaders have stated an intent to extend the Cap and Trade program, but it is still unclear what revenues would be allocated to publicly owned utilities in that extension.

The City maintains comparable rates to PG&E for most gas customers, with the exception of some commercial customers. This is true despite the fact that PG&E uses its Gas Cap and Trade revenue to provide climate credits to residential and small business customers. The Council has expressed a policy preference for the use of Gas Cap and Trade revenues for emissions reduction rather than climate credits, but if it were to adjust that policy there would be an opportunity to reduce gas rates about 7% to 8% through 2030, which would be equal to about $5 to $7 per month on the median residential gas bill. Gas Cap and Trade revenues do not extend past 2030, so rates would need to be increased again unless the State extended this revenue source for the City.

Opportunities to support other community goals
These funding sources can be deployed to achieve other community goals as well, such as municipal electrification or resiliency projects. And, of course, as noted above, City alternative transportation projects that reduce emissions are also eligible uses of funds.

There are already incentives available for electrification of City facilities via the City’s commercial electrification incentive programs, and the City is taking advantage of those incentives wherever possible. But heavy-duty vehicle electrification, both the chargers and the vehicles themselves, represent a unique City need. These funding sources could likely be used for this purpose, with the understanding that while these programs would yield emissions reductions, they would not yield scalable program results since the City is one of the only heavy fleet operators in Palo Alto, and is perhaps the only one, unless new facilities (e.g. for rideshare or transit agencies) are built. The City is still working to determine the systemic cost of fleet electrification, so no cost estimates are included here, but there is an upcoming purchase of a low-emissions fire vehicle that is expected to cost $700,000 more than a comparable internal combustion version.

Local resiliency, both short-term (outages under 24 hours) and long-term (outages lasting for days or weeks), is an important consideration if the community continues to pursue an electrified future. Investing in local solar and storage projects can be more expensive than investing in utility-scale projects outside Palo Alto, but if located within the community, these projects could also provide resiliency. The City currently supports these projects via its net energy metering program, which enables residents to reduce their utility bills by connecting solar and storage behind the meter, and its Palo Alto CLEAN program, which pays solar and Item 5
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storage owners for every kWh of energy delivered to the City’s electric system. These solar and storage systems, if configured as microgrids, can be connected to specific circuits within buildings to provide additional resiliency during short-term or longer-term outages. If the City wanted to increase its support to local microgrid projects, these funding sources could be used as an alternative to the use of ratepayer funds (as were used for the Palo Alto CLEAN). Staff is currently analyzing various strategies to achieve the community’s resiliency goals as part of its implementation of the Reliability and Resiliency Strategic Plan and does not yet have cost estimates.

Establishing a Policy for Use of Public Benefits Funds
As noted above, the Council has approved policy documents for the use of Electric and Gas Cap and Trade and LCFS revenues. Staff recommends a similar policy document for Electric and Gas Public Benefits revenues. Staff has drafted a policy for Council feedback (Attachment C). This policy provides more specificity on how these revenues can be used in compliance with State law. A summary of the uses noted in the policy are shown in Table 2 below, though the policy does not preclude other legally compliant options:

Table 2: Proposed Council Policy: Public Benefit Programs Utility Regulatory Section Uses Noted in Council Policy Public Utilities Code Section 385, enacted in 1996, requires all POUs to collect a usage-based charge to fund investments in four areas:
(1) Cost-effective demand-side
management services to promote
energy efficiency and energy
conservation
•Energy efficiency and conservation
•Building electrification as an energy
efficiency measure
•E-bikes and other small EVs as
transportation efficiency
(2) New investment in renewable
energy resources and technologies
consistent with existing statutes and
regulations which promote those
resources and technologies
•Utility-scale renewable energy
resources
•Local renewable energy (could include
energy storage or be configured as a
microgrid)
(3) Research, development and
demonstration programs for the public
interest to advance science or
technology not adequately provided by
competitive and regulated markets
•Small pilots of emerging energy or
electrification technologies or
program delivery mechanisms
Electric
(4) Services provided for low-income
electricity customers, including, but
not limited to, energy
efficiency services, education,
weatherization, and rate discounts
•Low-income efficiency
•Low-income rate assistance
•Low-income vehicle electrification,
including EV charging
•E-bikes and other small EVs as
transportation efficiency
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Gas Public Utilities Code Section 890, enacted in 2000, imposes a surcharge on all natural gas consumed in California to fund certain public purposes (listed below). Municipalities that offer programs similar to those set forth below are not required to collect the surcharge:
•Low-income rate assistance and weatherization
•Cost effective energy efficiency and conservation measures •Public interest research and development
The proposed Council policy restates these objectives without elaboration, though it would be possible to elaborate further in the policy on the types of programs the Council wants to prioritize in this area.

FISCAL/RESOURCE IMPACT
The fiscal and staffing resource impact of decisions on the use of these revenue sources will depend on the spending decisions made. The impacts of different spending decisions are included above in the description of each listed spending opportunity. In general, climate programs to further the 80x30 goal require significant staff time and resources, as noted above.

Commitments to State and Regional regulatory support require slightly lower, but still significant staff time and resources. Committing funds to new renewable energy resources to meet State RPS goals requires the least staff time and helps maintain competitive utility rates in comparison to other public owned utilities.

The fiscal impact of staff’s proposed FY 2026 Climate budget items will be provided as part of the FY 2026 budget process.

STAKEHOLDER ENGAGEMENT
Staff has not done outreach beyond public hearings (e.g. UAC, Finance, Council) on the use of these revenue sources. Staff has held numerous public hearings on the S/CAP over the past decade and holds public hearings on utility rates annually. Staff plans to continue these types of hearings in the future. The Air District has done public outreach and held hearings about its Zero NOx regulations.

ENVIRONMENTAL REVIEW
Council’s discussion of the use of these revenue sources is not a project as defined by CEQA because it does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4).

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ATTACHMENTS
Attachment A: Summary of State regulations and Council Policies for Cap and Trade, LCFS, and Public Benefits
Attachment B: Cap and Trade, LCFS, and Public Benefits Reserves, Revenues, and Expenses Attachment C: Proposed Policy on the Use of Electric and Gas Public Benefits Funds APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
Kiely Nose, Interim Utilities Director
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Attachment A
Low Carbon Fuel Standard, Cap and Trade, and Public Benefits Revenues
State Regulations and Council Policies
This attachment provides an overview of the State regulations and Council policies applicable to the revenues received as a result of:
•The State-mandated participation of the City’s gas and electric utilities in the Western Climate Initiative Cap and Trade Program (Gas and Electric Cap and Trade revenues) •The City’s electric utility’s participation in the State’s Low Carbon Fuel Standard program for the electricity it serves to electric vehicles (LCFS revenues) •The revenues the State mandates the City’s electric utility collect for public purpose programs and the gas utility’s public purpose program requirements (Gas and Electric Public Benefits)
Electric Cap and Trade
Regulatory requirements: 17 Code of California Regulations (CCR) 95892 •Revenue must be used “for the primary benefit of retail electricity ratepayers of each electrical distribution utility, consistent with the goals of AB 32, and may not be used for the benefit of entities or persons other than such ratepayers.” (17 CCR sec. 95892(d)(3)). •Revenues subject to to any limitations imposed by the governing body of the utility, as well as those listed below.
•Revenue must be used for:
oRenewable energy (including with energy storage), as described in 95892(d)(3)(A); oEnergy efficiency or other projects that reduce energy demand oFuel switching, including zero emissions vehicles (ZEVs) or ZEV infrastructure, active transportation, or public transportation
oOther greenhouse gas (GHG) emissions activities for which the electrical distribution utility can demonstrate GHG emission reductions, including but not limited to sulfur hexafluoride (SF6) reduction, wildfire risk reduction, or forest carbon sequestration oNon-volumetric return to ratepayers (e.g. a climate credit) oAdministrative overhead and educational programs of the above uses Council policy: Resolution 100771, approved October 3, 2022 The Council resolution, originally approved in 2012 and amended in 2022, permits:
• Purchases of renewable energy
• Investment in energy efficiency
• Fuel switching from other fuels to electricity
• Investment in other carbon reduction activities
• Rebates to electric ratepayers
1 Resolution 10077, October 3, 2022, Resolution of the Council of the City of Palo Alto Amending the City’ s Policy on the Use of Freely Allocated Allowance Under the State's Cap-and-Trade Program and Authori zing the City Manager to use $1.25 million from the Gas Utility Cap and Trade Reserve for the Advanced Heat Pump Water Heater program, https://portal.laserfiche.com/Portal/DocView.aspx?id=38224&repo=r- 704298fc
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Attachment A
All uses of these funds will be reviewed for compliance with applicable State law before implementing new programs.

Examples of permissible uses of Electric Cap and Trade Funds:

Use category Examples
Renewable energy •Buying energy via power purchase agreement (PPA) from utility-scale renewable generators outside Palo Alto
•Prepayments of PPAs to reduce overall costs
•Buying local renewable energy (e.g. via Palo Alto CLEAN) from solar installations or solar + battery microgrids
•Incentives / rebates for local renewable energy (e.g. solar rebates), including local solar + battery microgrids
Energy efficiency •Rebates or programs to install efficient equipment in buildings, including “Efficiency as a Service” programs Fuel switching •Rebates or programs to replace gas equipment in buildings with electric equipment,
•Zero emissions vehicle rebates and charging/fueling
infrastructure
Other carbon reduction •Replacing SF6 in utility equipment (e.g. transformers) •Active transportation (e.g. walking, biking, e-bikes, e- scooters)
•Public transit
Rebates •Climate Credit to some or all customers in Palo Alto History of Council policy adoption and revenue allocation •December 10, 2012: Council adopts Resolution 9307 2 on use of Cap and Trade revenue for the Electric Utility. Authority to designate use of revenue was delegated to the City Manager, except for customer rebates, which were required to be approved by Council. In the discussion staff recommended that the revenues be used to fund renewable energy and energy efficiency programs already planned by the utility. •FY 2012 – FY 2020: 100% of funds were used for renewable energy and energy efficiency. •August 4, 2020: Council approved use of some Cap and Trade revenue for local decarbonization.3 Revenue was to be transferred to a Cap and Trade reserve until designated for use under the Council-adopted policy.
•October 3, 2022: Council adopts Resolution 10077 updating the use of Cap and Trade revenue policy for the Electric Utility to explicitly include fuel switching from other fuels to electricity.
2 Resolution 9307, December 10, 2012, Resolution of the Council of the City of Palo Alto Adopting the Ca p-and-Trade Revenue Utilization Policy for the Use of Revenues From the Sale of Allocated Allowances i n California's Greenhouse Gas Cap-and-Trade Auctions, https://portal.laserfiche.com/Portal/DocView.asp x?id=9550&repo=r-704298fc
3 Staff Report 11556, August 24, 2020: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?Blo bID=78046
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Attachment A
Gas Cap and Trade
Regulatory requirements: 17 CCR 95893
•Revenue must be used “for the primary benefit of retail gas ratepayers of each electrical distribution utility, consistent with the goals of AB 32, and may not be used for the benefit of entities or persons other than such ratepayers.” (17 CCR sec. 95893(d)(3)) •Revenues subject to any limitations imposed by the governing body of the utility, as well as those listed below.
•Revenue must be used for:
oEnergy efficiency and other projects that reduce energy demand oOther GHG emissions activities, for which the natural gas supplier can demonstrate GHG emission reductions, including but not limited to reductions in emissions of uncombusted natural gas not required by mandates
oNon-volumetric return to ratepayers (e.g. a climate credit) oAdministrative overhead and educational programs for the above uses Council policy: Resolution 100774, approved October 3, 2022 The Council resolution, originally approved in 2015 and amended in 2022, permits:
• Investment in energy efficiency
• Purchases of cost effective renewable biogas
• Fuel switching from natural gas to electricity that reduces greenhouse gas emissions • Investment in other carbon reduction activities including system maintenance or replacement to reduce fugitive gas emissions;
• Non-volumetric rebates to electric ratepayers
It expresses a preference for the use of revenues for GHG-reducing activities. All uses of these funds will be reviewed for compliance with applicable State law before implementing new programs.

Examples of permissible uses of Gas Cap and Trade Funds:

Use category Examples
Energy efficiency •Rebates or programs to install efficient equipment in buildings, including “Efficiency as a Service” programs Purchases of cost-effective
biogas
•Purchases of cost-effective biogas for the gas portfolio Fuel switching •Rebates or programs to replace gas equipment in buildings with electric equipment,
Other carbon reduction •Leak detection and repair more frequent than mandated Rebates •Climate Credit to some or all customers in Palo Alto History of Council policy adoption and revenue allocation 4 Resolution 10077, October 3, 2022, Resolution of the Council of the City of Palo Alto Amending the City’ s Policy on the Use of Freely Allocated Allowance Under the State's Cap-and-Trade Program and Authori zing the City Manager to use $1.25 million from the Gas Utility Cap and Trade Reserve for the Advanced Heat Pump Water Heater program, https://portal.laserfiche.com/Portal/DocView.aspx?id=38224&repo=r- 704298fc
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•January 26, 2015: Council adopts Resolution 9487 5 on the use of Gas Cap and Trade revenue. The policy expresses a preference for the use of revenues for GHG-reducing activities.
•October 3, 2022: Council adopts Resolution 10077 updating the use of Cap and Trade revenue policy for the Gas Utility to explicitly include fuel switching from other fuels to electricity. At that time Council also allocated $1.25 million for the Advanced Heat Pump Water Heater Pilot Program.
•April 15, 2024: Council allocated an additional $846K to the Advanced Heat Pump Water Heater Pilot Program
Low Carbon Fuel Standard
Regulatory requirements: 17 CCR 95483(c), 95491(d)(3)(A) California Air Resources Board (CARB) Guidance Document 20-03
•25% of credit revenue must be contributed to the statewide Clean Fuel Reward program •50% of remaining credit revenue must be used for low-income individuals •The remaining credit revenue must be used to benefit current or future EV drivers •CARB strongly encourages revenue collected from a specific sector (e.g. residential) to be used for projects serving that sector
Council policy: Resolution 9871, December 2, 20196
The Council resolution, originally approved in 2016 and amended in 2019, permits the following for the use of funds from the sale of LCFS credits obtained due to serving electricity to EVs:
• EV charger infrastructure focused on multi-family, including utility connection fees • EV rebates, including e-bikes and e-scooters
• Rate incentives to lower the cost of EV charging or encourage off-peak charging • EV demand response
• Education and outreach
All uses of these funds will be reviewed for compliance with applicable State law before implementing new programs.
5 Resolution 9487, January 26, 2015, Resolution of the Council of the City of Palo Alto Amending the Cap -and-Trade Revenue Utilization Policy to Cover the Use of Freely Allocated Allowances for the Gas and El ectric Utilities, https://portal.laserfiche.com/Portal/DocView.aspx?id=10165&repo=r-704298fc 6 Resolution 9871, December 2, 2019, Resolution Amending Utility Rate Schedule E-15 (Electric Service Connection Charges), and Approving Updates to the City’s Program for use of Revenues from the Sale of Low Carbon Fuel Standard Credits, https://portal.laserfiche.com/Portal/DocView.aspx?id=18339&repo=r- 704298fc
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Examples of permissible uses of LCFS Funds from serving electricity to EVs:

Use category Examples
Low-income projects and
programs
•EV charging infrastructure
•EV rebates
•Public transit and active transportation (bikes, walking) •E-mobility (e.g. e-bikes, e-scooters, EV sharing and
rideshare)
•Bill credits to reduce the cost of EV charging
Use for the benefit of
current and future EV
owners
•EV charging infrastructure
•EV rebates
•Bill credits to reduce the cost of EV charging
The policy also includes provisions related to the LCFS credits received for serving compressed natural gas (CNG), which must be used to promote CNG vehicle adoption, including:
• Capital and maintenance costs of the City’s CNG station • Activity to dispense carbon neutral CNG (e.g. offsets or renewable natural gas) • Reducing the CNG retail charge rate
History of Council policy adoption and revenue allocation •October 24, 2016: Council adopts a policy on the use of Low Carbon Fuel Standard revenue.7 It included an initial spending plan and gave the City Manager authority to make changes.
•December 2, 2019: Council approves Resolution 9871 updating the policy to include rebates for connection fees (e.g. the cost of transformer upgrades) Electric Public Benefits
Regulatory requirements: State Public Utilities Code Section 385 (AB 1890, 1996) •Publicly owned utilities must impose a surcharge on all electricity sales to fund:
o(1) Cost-effective demand-side management services to promote energy-efficiency and energy conservation
o (2) New investment in renewable energy resources and technologies consistent with existing statutes and regulations which promote those resources and technologies. o(3) Research, development and demonstration programs for the public interest to advance science or technology which is not adequately provided by competitive and regulated markets.
o(4) Services provided for low-income electricity customers, including but not limited to, targeted energy efficiency service and rate discounts.

Council policy: FY 1998 Rate Setting Process, spring 1997 and FY 1999 Budget, spring 1998 7 Staff Report ID#7301, October 24, 2016:
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Attachment A
On May 5, 1997 Council approved modifications to the electric utility rates to separate them into distribution, supply, and public benefits charges, as mandated by law, and as described in City Manager’s Report (CMR) 219:978. The public benefits charge was only 1.6% of revenues when it took effect July 1, 1997, below the 2.85% of revenues mandated by law, but in its motion to approve the FY 1999 Budget on June 22, 1998 the Council approved a UAC and Finance Committee recommendation to increase Public Benefits spending to 2.85% as described in CMR 237:989. A Public Benefits Reserve was also created to hold any unspent funds from the Public Benefits charge.

Council has approved plans for spending of electric public benefits funds in various forms since then. The most current approved plan for electric public benefit spending was adopted May 3, 2021, setting 10-year electric energy efficiency goals.10 Examples of permissible uses:

Use category Examples
Cost-effective energy
efficiency and conservation
•Rebates or programs to install efficient equipment in
buildings, including “Efficiency as a Service” programs •Rebates or programs to replace gas equipment in
buildings with electric.
•E-bikes or e-scooters as transportation energy efficiency Renewable energy •Buying energy via power purchase agreement (PPA) from utility-scale renewable generators outside Palo Alto
•Prepayments of PPAs to reduce overall costs
•Buying local renewable energy (e.g. via Palo Alto CLEAN) from solar installations or solar + battery microgrids
•Incentives / rebates for local renewable energy (e.g. solar rebates), including local solar + battery microgrids
Research and development •Building envelope improvements to reduce heat loss Low-income services •Utilities Residential Energy Assistance Program, which does direct installation of efficiency measures in homes •Rate or bill discounts for low-income customers
•Low-income building or vehicle electrification programs (including EV charging) that reduce bills for income-
qualified customers compared to use of gas or gasoline
Gas Public Benefits
Regulatory requirements: State Public Utilities Code Section 890 (AB 1002, 2000) •A surcharge must be imposed on all methane gas consumed in California to fund:
olow-income rate assistance programs,
olow-income energy efficiency programs,
8 City Manager’s Report 219:97, Finance Committee, May 5, 1997, Proposed Electric Fund Rate Increas e, Establishment of Unbundled Rates and New Commercial Rate Options, and Calaveras Reserve Propo sal, https://portal.laserfiche.com/Portal/DocView.aspx?id=60628&repo=r-704298fc 9 City Manager’s Report 237:98, May 19, 1998, Proposed Electric Public Benefits Programs for Fiscal Ye ar 1998-1999, https://portal.laserfiche.com/Portal/DocView.aspx?id=60632&repo=r-704298fc 10 Staff Report ID#12068, May 3, 2021: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas- minutes-reports/reports/city-manager-reports-cmrs/year-archive/2021/id-12068.pdf Item 5
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Attachment A
ocost-effective energy efficiency and conservation activities, and opublic interest research and development not adequately provided by the competitive and regulated markets.
•Municipalities that offer home weatherization services, low-income customer rate assistance or programs similar to those set forth above are not required to collect the surcharge.

Council policy: FY 1997 Budget, June 24, 1996
In its motion to approve the FY 1997 Budget on June 24, 1996 the Council approved a UAC and Finance Committee recommendation to approve a new Demand Side Management (DSM) policy as described in City Manager’s Report (CMR) 209:96. CMR:209:9611 recommended a “policy for allocation of (between .75% and 1.25% of revenues) to the environmentally friendly and DSM programs, with proposed program details to be provided to the UAC for review and comment.”
Council has approved plans for spending of gas public benefits in various forms since then. The most current approved plan for gas public benefit spending was adopted April 3, 2017, setting 10 year gas efficiency goals.12
Examples of permissible uses:

Use category Examples
Low-income rate
assistance programs
•Utilities Rate Assistance Program
Low-income energy
efficiency programs
•Utilities Residential Energy Assistance Program, which does direct installation of efficiency measures in homes
Cost-effective energy
efficiency and conservation
•Building envelope improvements to reduce heat loss
Research and Development •Building electrification resulting in reduced gas utility costs (e.g. block electrification to prevent gas main replacement) 11 City Manager’s Report 209:96, City Council, April 18, 1996, Budget Issue: New Demand Side Manage ment Program, https://portal.laserfiche.com/Portal/DocView.aspx?id=60592&repo=r-704298fc 12 Staff Report ID#7862, April 3, 2017: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas- minutes-reports/reports/city-manager-reports-cmrs/year-archive/2017/final-staff-report-id-7862_update-of- ten-year-gas-efficiency-goals.pdf
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Low Carbon Fuel Standard, Cap and Trade, and Public Benefits Reserves, Revenues, and Expenses Projected Revenues and Commitments ($000)Funding Source FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Public Benefits 7,268LCFS 6,534Electric Cap and Trade 4,122Gas Cap and Trade 13,568 Public Benefits 5,063 5,293 5,557 5,831 6,119 6,398LCFS 1,120 1,232 1,355 1,400 1,400 1,400Electric Cap and Trade 2,992 2,999 3,024 3,013 3,039 3,039Gas Cap and Trade 3,141 3,416 3,690 3,959 4,221 4,470 Public Benefits (4,840) (4,840) (4,262) (4,390) (4,522) (4,658)LCFS (2,564) (1,064) (1,064) (1,064) (1,064) -Electric Cap and Trade (1,282) (1,789) (1,944) (2,103) (2,309) (2,279)Gas Cap and Trade - - - - - - Public Benefits - (1,299) - - - -LCFS - (2,981) - - - -Electric Cap and Trade - - - - - -Gas Cap and Trade (9,770) (1,305) - - - -FROM RESERVES (6,140) (338) - - - -UNCOMMITTED REVENUES - - 6,355 6,646 6,884 8,370 FY 2025 and FY 2026 Budget Proposals
Reserves, FY24 YE ($000)FY 2024 Year-End Reserves
FY 2025-FY 2030 Projected Revenues
FY 2025-FY 2030 Committed Based on Existing Budgets and Policies Item 5
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DRAFT ATTACHMENT C
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Proposed Policy on the Use of Electric and Gas Public Benefits Funds I. Electric Public Benefits Charge
Public Utilities Code Section 385, enacted in 1996, requires all publicly owned utilities (POUs) with distribution facilities to collect a nonbypassable usage-based charge to fund investments in four areas:
(1) Cost-effective demand-side management services to promote energy efficiency and energy conservation.
(2) New investment in renewable energy resources and technologies consistent with existing statutes and regulations which promote those resources and technologies. (3) Research, development and demonstration programs for the public interest to advance science or technology which is not adequately provided by competitive and regulated markets. (4) Services provided for low-income electricity customers, including, but not limited to, energy efficiency services, education, weatherization, and rate discounts.

While Public Utilities Code Section 385 prescribes a specific revenue collection formula,1 the statute provides POUs flexibility to implement a program as long as expenditures fall within the four categories specified in the statute. This structure has remained unchanged for nearly 20 years.2 Legislative history supports an interpretation of broad POU authority over their Public Benefits programs. The last bill to amend Section 385 was SB 1939 in 2000. Both the final Senate Floor Analysis and final Assembly Floor Analysis included the following description of the Public Benefits program:

AB 1890 (Brulte), Chapter 854, Statutes of 1996, the landmark electric restructuring law, requires IOUs and publicly-owned utilities to impose a surcharge on each electricity customer to fund, among other programs, needs- based public purpose programs for low-income electricity customers, including but not limited to, targeted energy efficiency and rate discounts. The publicly- owned utilities, unlike the IOUs, are not required to spend specified amounts on public purpose programs and have total discretion as to how these monies are spent.3
1 The statute does not establish a specific collection rate from customers, but it does establish a formula. Most POUs have interpreted this formula to result in a local distribution service charge of 2.85%. POUs may present the charge as a separate bill component or fold it into the overall rate.
2 In contrast, the statutes governing similar programs for investor-owned utilities have regularly been restructured, modified, and limited over that time period. The lack of legislative action related to POU public benefits programs suggests that the Legislature views POU programs as consistent with legislative intent. (Bd. of Trustees of California State Univ. v. Pub.

Employment Relations Bd., 155 Cal. App. 4th 866, 877–78 (2007)). 3 Senate Floor Analysis of SB 1939, August 30, 2000 (emphasis added).

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II. Gas Public Benefits Charge
Public Utilities Code Section 890, enacted by AB 1002 in 2000, imposes a surcharge on all natural gas consumed in California to fund:
1) low-income rate assistance programs,
2) low-income energy efficiency programs,
3) cost-effective energy efficiency and conservation activities, and 4) public interest research and development not adequately provided by the competitive and regulated markets.

Municipalities that offer home weatherization services, low-income customer rate assistance or programs similar to those set forth above are not required to collect the surcharge. Since Palo Alto’s Gas Utility offers the services and programs described, CPAU does not collect the surcharge as a separate line item on customer bills. Rather, the Gas Utility uses between 0.75% and 1.25% of gas utility revenues to fund Gas Public Benefit Programs in whatever amount is needed to fulfill demand for the above programs.

Legislative history described the gas Public Benefit programs as “of a similar character” as the non- bypassable surcharge which funds electric public purpose programs and “specific to the service territory of each gas public utility”.4
III. Use of Gas and Electric Public Benefits Funds
In light of the statutory text and legislative history interpreting the Electric and Gas Public Benefits statutes, the Council wishes to set forth a policy on prioritization of the use of Public Benefits funds collected by the City’s Electric and Gas Utilities. All uses of these funds will be reviewed for compliance with applicable State law before implementing new programs. 1)Electric Utility Public Benefits revenues may be used for any of the purposes identified in Public Utilities Code section 385 in the following order of preference:
a) Demand Side Management Programs to support Distributed Energy Resource Integration b)Cost effective energy efficiency and conservation measures to ensure compliance with SB 1037 (2005) requiring the development of all cost-effective energy efficiency and SB 350 (2015) which increased energy efficiency targets statewide.
i) Energy efficiency and conservation include building electrification measures that reduce energy use on a btu basis compared to a gas equivalent piece of equipment. ii) Cost-effectiveness can be determined by studies using the direct supply cost savings to the community associated with the efficiency or electrification measures. iii) Incentives for the purchase of e-bikes or other small EVs or provision of leasing services are included as an energy efficiency measure for electric transportation. c) Services to low-income customers, including:
i) Low-income rate discounts
4 California Bill Analysis of AB 1002, June 27, 2000.

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ii) Energy efficiency and building electrification services, provided that electrification measures reduce customer utility bills compared to a gas equivalent piece of equipment. iii) Vehicle electrification, including EV charging.
iv) Incentives for the purchase of e-bikes or other small EVs or provision of leasing services as an energy efficiency measure for electric transportation. d) Purchasing or providing incentives for renewable energy (with or without the inclusion of battery storage), either locally or outside Palo Alto
e) Research and development funding for small pilots of emerging energy or electrification technologies or program delivery mechanisms.
2)Gas Public Benefits Revenues may be used for any of the purposes identified in Public Utilities Code section 890, in the following order of preference:
a)Low-income rate assistance and weatherization
b)Cost effective energy efficiency and conservation measures c)Public interest research and development
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Auditor
Meeting Date: May 12, 2025
Report #:2504-4585
TITLE
Approve the Office of the City Auditor Quarterly Report for the Period of October - December 2024

RECOMMENDATION
The Policy & Services Committee and the Office of the City Auditor recommend City Council approve the results of the Office of the City Auditor Quarterly Report for the Period of October through December 2024.

BACKGROUND
The City of Palo Alto’s (City) contract with Baker Tilly Advisory Group, LP (Baker Tilly) outlines six tasks for administering the City Auditor function. As part of Task 5 – Various Reporting & City Hotline, Baker Tilly provides quarterly status reports on audit progress and completion, as well as progress on other tasks to City Council.

Task 6 – Evaluation and Benchmarking, tasks the City Auditor with conducting a benchmarking assessment of audit activities and costs against other comparable cities.

ANALYSIS
The internal audit activities from October – December 2024 are listed below by task as set forth in Baker Tilly’s agreement with the City:
•Task 1 – Citywide Risk Assessment
The Citywide Risk Assessment was completed in November and presented to the Policy & Services Committee and City Council in December 2024.1 •Task 2 – Preparation of the Annual Audit Plan
1 Policy & Services Committee Meeting 12/10/2024 Staff Report 2411-3841 Item 6
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The FY2025 Audit Plan was approved by City Council in December 2024.2 •Task 3 – Selection of External Financial Auditor and Annual Audit Coordination The City’s external auditor, Macias Gini & O’Connell, LLP (MGO) completed the FY2024 Financial Statement Audit and Annual Comprehensive Financial Report (ACFR)3 also known as the Single Audit and presented the results at the December 3, 2024 Finance Committee meeting. MGO issued a clean opinion on each audit report and reported no findings within the Agreed-Upon Procedures report.
•Task 4 – Execute Annual Audit Plan
Presented two audit reports to the Policy & Services Committee:

ADA Compliance on November 6, 20244
Recruitment & Succession Planning Audit on December 10, 20245 Several Audits from the FY2024 Audit Plan were in reporting in the 2nd quarter of FY2025 including:

Grant Management Audit (Task Order 4.24)
Emergency Preparedness Audit (Task Order 4.25)
Utility Billing Audit (Task Order 4.26)
Payment Card Industry Data Security Standards Audit (Task Order 4.27) Dispatch Center Program Assessment (Task Order 4.28)
•Task 5 – Periodic Reporting, Hotline Monitoring, and Other Administrative Functions No hotline allegations were received during this period. One hotline allegation was closed with no remediation needed. One hotline allegation is still being investigated.

The City Auditor’s Office provided the FY2025, Q1 update on October 8, 2024.6 Baker Tilly participated in various meetings including City Council, Executive Leadership, Agenda Planning, and Committee Meetings.
2 Staff Report 2411-3841
3 Staff Report 2404-2912
4 Staff Report 2409-3476
5 Staff Report 2410-3633
6 Staff Report 2409-3519
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•Task 6 – Evaluation and Benchmarking
The City Auditor began a Benchmarking Assessment7 of audit activity costs. The results of this work were presented as part of this Quarterly Status presentation.

At the March 11, 2025 Committee meeting, Policy & Services Committee members requested additional information about cities closer in size to Palo Alto. The table below consolidates the information provided in the original presentation as well as information on the additional cities of Cupertino, Menlo Park, Mountain View, Sunnyvale and Santa Clara.

Comparative Audit Activity Information for FY2024

FISCAL/RESOURCE IMPACT
The Quarterly Status Report does not have a resource impact and is included as part of the annual Office of the City Auditor budget.

ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because the audit activities do not involve any commitment to any specific project which may result in a potentially significant 7 Based on information publicly available on city websites.

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physical impact on the environment. CEQA Guidelines section 15378(b)(4). Council action on this item is not a project as defined by CEQA because the audit activities do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4).

ATTACHMENTS
Attachment A: Office of the City Auditor Quarterly Report for FY25, Q2 APPROVED BY:

Kate Murdock, City Auditor
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Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2022 Baker Tilly US, LLP.

City of Palo Alto
Office of the City Auditor (OCA)
Policy & Services Committee
Meeting
FY2025, Q2 - Quarterly Status Report
March 11, 2025
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Q2

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Agenda
• Audit Activities
• Task 4 – Execute Annual Audit Plan – Project Status
• Task 5 – Various Reporting & City Hotline
• Task 6 – Evaluation & Benchmarking
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3 Quarterly Report for October – December 2024

AUDIT ACTIVITIES
Task Key Activities
1 Citywide risk assessment FY2024 risk assessment was presented to the Policy & Services Committee on 12/10/24.
2 Annual audit plan FY2025 audit plan was adopted by City Council on 12/16/24. 3 Financial statement audit FY2024 Audited Financial Statements scheduled for presented to the Finance Committee on 12/3/24.
4 Execute annual audit plan
Policy & Services Committee approved:
• ADA Compliance Audit (11/6/24)
• Recruitment & Succession Planning (12/10/24)
5 Periodic reporting, hotline
monitoring, admin. function
• One hotline allegation investigation was closed with no remediation needed and one investigation is still in process from the first quarter of FY2025. • No hotline allegations received in Q2 of FY2025.
• Quarterly Status Report for Q1 presented to Policy & Services on 10/8/24. 6 Evaluation and benchmarking Benchmarking study began
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Q2

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4 Quarterly Report for October – December 2024
TASK 4 – EXECUTE ANNUAL AUDIT PLAN
Status of FY2024 Audit Plan Projects*
Department Project Title Task Order Status
Public Works ADA Compliance Audit 4.22 Completed
Human Resources Recruitment & Succession Planning Audit 4.23 Completed Citywide Grant Management Audit 4.24 Completed (02/25)
Utility Utility Billing Audit 4.26 Completed (02/25)
Citywide Emergency Preparedness (Wildfire) Audit 4.25 Reporting Police/Citywide Dispatch Center Program Assessment 4.28 Reporting Citywide Payment Card Industry Data Security Standards Audit 4.27 Reporting * Completed projects are removed from the list the following Quarter’s Status Report Item 6
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Q2

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5 Current Projects
TASK 4 – EXECUTE ANNUAL AUDIT PLAN
Status of FY2025 Audit Plan Projects Started in January 2025* Department Project Title Task Order Status
Administrative Services Purchasing Card 4.29 Planning
Planning & Development Building Permit & Inspection Fees 4.30 Planning Community Services Junior Museum & Zoo Operations 4.31 Planning Community Services Equipment & Materials Inventory Management 4.32 Planning Police/Citywide Public Safety Staffing and Overtime 4.33 Planning Citywide Follow-up on Prior Audit Recommendations 4.34 Planning * Completed projects are removed from the list the following Quarter’s Status Report Item 6
Attachment A - Office of the City
Auditor Quarterly Report for FY25,
Q2

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6 Quarterly Report for July – September 2024
TASK 5 – VARIOUS REPORTING & CITY HOTLINE
Fraud, waste & abuse
Hotline Reports & Updates
Quarter Received In Process Closed
FY25, Q2 0 1 1
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7 Benchmarking Analysis
TASK 6 – EVALUATION & BENCHMARKING
• Comparative Analysis of several Bay Area Cities
• Highlights from the Association of Local Government Auditors 2024 Benchmarking Survey
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Q2

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8 Benchmarking Analysis
TASK 6 – EVALUATION & BENCHMARKING
• Roughly 50 local government agencies that are part of the Association of Local Government Auditors (ALGA)
• Berkeley Glendale
• Long Beach Oakland
• San Jose
• Benchmarking Criteria
• Population
• Audit Budget
• No. of FTEs
• Number of Reports Issued
• Cost per Audit
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Q2

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9 Benchmarking Analysis
TASK 6 – EVALUATION & BENCHMARKING
City Population
Audit Function
Outsourced? Audit Budget No. of FTE’s
No. of Audits
Issued
Average Cost
per Audit
(Audit budget/
No. of Audits)
Berkeley 118,932 No $3,124,862 14.75 1 $3,124,862
Glendale 203,000 No $796,575 2 9* $88,508
Long Beach 449,468 No $3,507,601 18 10 $350,760
Oakland 436,504 No $3,528,626 12 5 $705,725
San Jose 969,655 No $3,641,097 14 17** $214,182
Palo Alto 65,882 Yes $366,755 14+ 3 $122,252
Comparative information for FY 2024
* Three of Glendale’s audits appear to be PCI Compliance Audits **Based on San Jose’s budget document of expected audit outputs, however, their website shows 9 audits issued in FY2023-24 Palo Alto 65,882 Yes $695,124 14+ 7 $99,303
Comparative information for FY 2025
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TASK 6 – EVALUATION & BENCHMARKING
Some metrics from ALGA’s 2024 Benchmarking Survey
• Small shop is defined as 3 to 5 auditors
• Approximately 14 Baker Tilly staff worked on Palo Alto audits in FY24/FY25 • On average, 57% of staff hours are allocated directly to audits for small shops • Over 70% of Baker Tilly contract hours in 2024 were allocated directly to audits
• 95%of management agreed with audit recommendations
• 100% of management agreed with audit recommendations in 2024 • Estimated financial impacts related to audit findings and recommendations • We will look at the feasibility of tracking this in the future Item 6
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Q2

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TASK 6 – EVALUATION & BENCHMARKING
From ALGA’s 2024 Benchmarking Survey: Audit plans compared to ranked audit risk categories
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12 Quarterly Report for October – December 2024

RECOMMENDATION
The Office of the City Auditor recommends that the Policy and Services Committee recommend the City Council accept the Office of the City Auditor’s Quarterly Status Report covering Q2, FY2025.

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: May 12, 2025
Report #:2502-4133
TITLE
Stanford University Medical Center (SUMC) Annual Report to Council for Fiscal Year 2024 (FY 24)

RECOMMENDATION
Staff recommends that the City Council:

1. Review the Stanford University Medical Center (SUMC) Annual Report for FY 24, and find that Stanford Hospitals & Clinics, Lucile Packard Children’s Hospital, and Stanford University (SUMC Parties) have complied in good faith with the terms and conditions of the SUMC Development Agreement;

2. Find that the SUMC Parties are not in default with the terms and conditions of the Agreement in all sections; and

3. Accept the City of Palo Alto’s (City) Annual Report Supplements regarding the funds received from the SUMC Parties, as required under Section 12(d) of the Development Agreement (Attachment E).

EXECUTIVE SUMMARY
The City Council is required to review the SUMC Development Agreement, an agreement between Stanford Hospital and Clinics, Lucile Packard Children’s Hospital, Stanford University (SUMC Parties), and the City of Palo Alto, (the “Agreement”), to confirm compliance with the Agreement’s terms. SUMC prepared their SUMC Annual Report for Fiscal Year (FY) 2023-2024 that discusses how they met their compliance obligations during the reporting time period (Attachment A). The City also uses this Annual Report to Council to provide information on the City’s compliance obligations, such as providing the required summary and description of how the City expended funds provided by SUMC per the Agreement.

As documented in this Annual Report to Council, both SUMC and the City are in compliance with the terms of the Agreement and Agreement Amendment Number 1 for the reporting period FY 24.

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BACKGROUND
On June 6, 2011, the Council approved Comprehensive Plan amendments, zoning changes, a conditional use permit, annexation, and design applications for the Stanford University Medical Center Facilities Renewal and Replacement Project (the “Projects”). The Projects include the construction of the new Stanford Hospital and clinics buildings, an expansion of the Lucile Packard Children’s Hospital (LPCH), construction of new School of Medicine (SOM) buildings, renovation of the existing Hoover Pavilion, construction of a new medical office building and parking garage at Hoover Pavilion, roadway improvements along Welch Road and Durand Way, and SUMC design guidelines. The Development Agreement vesting these approvals became effective on June 6, 2011, and continues for thirty (30) years from the effective date to June 6, 2041.

This report covers activities by the SUMC Parties for FY 24, which is the thirteenth year of the Agreement. The annual report prepared for FY 24 also found the SUMC parties to be in compliance with the Agreement and Agreement Amendment Number 1.1 Previous annual reports and compliance documentation can be found via the weblinks in Attachment B.

ANALYSIS
Development Agreement Section 12, “Periodic Review of Compliance,” requires City Council to confirm SUMC Parties’ compliance with the terms of the Agreement. Discussion items in this report are intended to guide City Council through the many aspects that SUMC and City staff monitor and track throughout the year to ensure compliance.

The SUMC Annual Report for FY 24 (Attachment A) describes the activities related to Agreement implementation and ongoing annual progress toward meeting the following obligations in Section 5 of the Agreement, SUMC Parties’ Promises:
•Health Care Benefits;
•Fiscal Benefits;
•Traffic Mitigation and Reduced Vehicle Trips;
•Linkages (Pedestrian, Bicycle, and Transit);
•Infrastructure, Sustainable Neighborhoods & Communities, Affordable Housing; and •Climate Change.

Staff prepared a summary of the Section 5 obligations and the staff-confirmed compliance status (Attachment C). Agreement Section 12 also includes the requirement for demonstration of good faith compliance with the Agreement. Toward this end, SUMC has timely submitted all the reports required of the SUMC Parties for FY 24.
1 The SUMC Annual Report to Council Fiscal Year 2022-2023 went before City Council at their March 11, 2024 meeting, see Consent Calendar Item 6 at the following meeting weblink:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=1115.

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Construction Activities and Net New Square Footage
SUMC discusses their construction activities for FY 24 in their SUMC Annual Report (Attachment A). City staff reviewed the information regarding SUMC net new square footage in the report and determined this information is complete and correct. No new construction received a certificate of occupancy in FY 2023-24 and therefore there was no change in net square footage.

Traffic Mitigation and Reduced Vehicle Trips
SUMC implemented all required transportation demand management (TDM) obligations in FY 2023-24, such as purchasing of Caltrain Go Passes, funding for the AC Transit U-Line, and other activities. Summaries of these activities can be found in Attachments A and C.

Alternative Mode Share Milestone Targets
SUMC previously achieved their 2021 alternative mode share milestone target of 33% for employee trips early, and every year between 2013 and 2019. The SUMC Parties maintained all TDM requirements in FY 2020 until Santa Clara County issued COVID-19 pandemic shelter-in- place orders in March 2020. On March 27, 2020, the City conditionally approved a one-year delay in the submittal of two reports; the FY 2020 Alternative Mode Share Report and Mitigation Measure TR 2.3 Enhanced Stanford University TDM Program report. Conditional approval of this delay was consistent with the procedures in Section 6(p) of the Agreement.

In Fiscal Years 2020-2021, 2021-2022, and 2022-2023, despite continuing to implement all TDM programs, as well as enhancing communications and promotions, the SUMC parties found that the alternative mode share milestone target of 33% was again not met. Under Agreement Section 5(c)(ix) Monitoring of TDM Programs, missing the alternative mode share milestone target for three consecutive years would have required SUMC to provide two $175,000 payments to the City for alternative transportation funding.

After submitting the FY 2021-2022 Alternative Mode Share report, SUMC sent the City a Notice of Intent to claim a permitted delay as outlined in the Development Agreement Section 18(c) Force Majeure. SUMC subsequently filed a Development Agreement Amendment application that proposed adjusted dates for achieving alternative mode share milestone target dates to account for the effect of the COVID-19 pandemic on SUMC employee use of alternative transportation modes. The City Council approved Ord. 5602: First Amendment to the SUMC Development Agreement Amendment.2 The amendment adjusted the alternative mode share milestone target dates, while still reaching 35.0% by 2026. The amendment also reset the interim target years, which trigger penalties in the event the targets are not met for two consecutive years.

The amendment includes an alternative mode share rate target of 33.0% by 2024, and 35.0% by 2026. Unfortunately, SUMC did not meet their 2024 target of 33.0%. Per the 2024 Alternative 2 Link to Ord. 5602: First Amendment to the SUMC Development Agreement Amendment:
https://portal.laserfiche.com/Portal/DocView.aspx?id=69406&repo=r-704298fc Item 7
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Mode Share Report (Attachment B), the 2024 alternative mode share was 30.5%. No penalty applies unless they also do not meet the 2024 target in 2025.

Construction Sales and Use Tax Monitoring Report
SUMC submitted the annual Construction Sales & Use Tax Monitoring Report on June 30, 2023, for the preceding calendar year. The City sent its required response. Based upon the City’s review of the annual Construction Sales and Use Tax Monitoring Report, revenues for calendar years 2011 through 2023 have totaled $5,497,299. This annual reporting assists in the process of ensuring that the City would receive no less than $8.1M in construction sales and use tax revenue by December 31, 2025.

Use of Development Agreement Funds (Supplement to the Annual Report) The funds received by the City through the Agreement represent funding for Operations and a significant portion of funding for implementation of the City’s Capital Infrastructure Plan.

Section 12 of the Agreement requires the City to prepare a Supplement to the Annual Report.

The Supplement is to include an accounting of the funds received from the SUMC Parties to satisfy the obligations outlined in Section 5 of the Agreement, a description of the account balances, and a summary and description of expenditures from the funds for each Fiscal Year (Attachment D). Section 12 mentions preparation of the Supplement within 45-days of the June and July receipt of the annual reports by SUMC, but there is no penalty for not doing so; after the close of the Fiscal Year, the City conducts an annual audit of the funds in Fall/Winter to demonstrate good faith in implementing the Agreement.

The SUMC Parties have already paid the City approximately $44.3 million in public benefit fees since June 6, 2011 through the FY 2023-24 reporting period.

Regarding fund usage during the Fiscal Year 2023-24 reporting period, the City authorized transfers for the following in the FY 2024 City Operating Budget:
•$366,000 transfer from the Community Health and Safety Fund to the General Fund (Police Department) for a Psychiatric Emergency Response Team (PERT); •$3.3 million transfer from the Infrastructure, Sustainable Neighborhoods and Communities, and Affordable Housing Fund to Capital Improvement Project Fire Station 4 Replacement (PE-18004); and
•$2.0 million transfer from the Infrastructure, Sustainable Neighborhoods and Communities, and Affordable Housing Fund to Capital Improvement Project Roth Building Rehabilitation (PF-23001).

For additional information about the recent use of Agreement funds please refer to the following:
•Fiscal Year 2024 Adopted Operating Budget document, Special Revenue Funds section; and
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•Fiscal Year 2024 Adopted Capital Improvement Budget document. 3 The SUMC agreement Section 5(a)(iii) requires that a joint committee make annual recommendations to the City Council regarding proposed disbursements from the Community Health and Safety Program Fund, and the City Council may use reasonable discretion to accept, reject, or modify these recommendations. The joint committee includes SUMC representatives and City staff from the Office of Transportation, Administrative Services, and Public Works departments. Projects using Community Health and Safety funds have gained mutual support from members of the joint committee and approval from the City Council.

During the fiscal year, the following changes were made between the Operating Budget and the final audited balances:
•$366,000 was not transferred for a PERT team, as Police was unable to hire for this position(s);
•The total transfer from the Infrastructure, Sustainable Neighborhoods and Communities, and Affordable Housing Fund to Capital Improvement Project was slightly lower than budgeted, at $4,575,000; and
•$750,000 was transferred from the Expansion Cost Mitigation fund for the Fire Station #4 Replacement (PE-18004).

FISCAL/RESOURCE IMPACT
There are no fiscal or resource impacts resulting from City Council review of the SUMC Agreement to confirm compliance with its terms. Planning for use of SUMC funds occurs separately during the City’s Annual budgeting process.

STAKEHOLDER ENGAGEMENT
Community members and policy makers were extensively involved in the crafting of the Agreement and all other associated project enabling entitlements; however, no subsequent outreach has been required for the annual reports. Furthermore, subsequent related project entitlements continue to be processed through the City’s standard review processes, as discussed in the Development Agreement and other entitlements.

ENVIRONMENTAL REVIEW
Reviewing and making findings regarding SUMC and City compliance with the Agreement is not a project under the California Environmental Quality Act and no environmental assessment is required for the annual compliance review. An environmental impact report for the entire 3 Fiscal Year 2024 Adopted Operating Budget document, Special Revenue Funds section:
https://www.cityofpaloalto.org/files/assets/public/v/1/administrative-services/city-budgets/fy-2024-city- budget/adopted/fy-24-palo-alto-adopted-operating-budget-book.pdf; Fiscal Year 2024 Adopted Capital Improvement Budget document:
https://www.cityofpaloalto.org/files/assets/public/v/1/administrative-services/city-budgets/fy-2024-city- budget/adopted/palo-alto-adopted-capital-budget-book.pdf.

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SUMC project was prepared and certified by the City Council prior to approval of the Agreement.

ATTACHMENTS
Attachment A: SUMC Annual Report FY 24
Attachment B: Weblinks to Prior SUMC Annual Reports
Attachment C: SUMC Development Agreement Section 5 Compliance Table Attachment D: Supplement to the Annual Report
APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 7
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Image Courtesy of Nearmap US Inc, 2024
PREPARED FOR THE CITY OF PALO ALTO | JULY 3, 2024
2023-24 ANNUAL REPORT
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CONTENTS
EXECUTIVE SUMMARY 1
BACKGROUND AND PURPOSE 2
2023-2024 SUMMARY OF PROGRESS 3
LUCILE PACKARD CHILDREN’S HOSPITAL 3
STANFORD HEAL TH CARE 4
SCHOOL OF MEDICINE 5
BLAKE WILBUR DRIVE ROADWAY EXTENSION 6
NET NEW SQUARE FOOTAGE 7
COMPLIANCE WITH DEVELOPMENT AGREEMENT OBLIGATIONS 8
HEAL TH CARE BENEFITS 8
SECTION 5(a)(ii). FUND FOR HEAL THCARE SERVICES 8
SECTION 5(a)(iii). FUND FOR COMMUNITY HEAL TH AND SAFETY PROGRAMS 8 PALO AL TO FISCAL BENEFITS 8
SECTIONS 5 (b)(i) AND 5(b)(ii). PAYMENT OF SALES AND USE TAXES 9 SECTION 5(b)(iii). FUNDING OF OPERATING DEFICIT 9
SECTION 5(b)(iv). PAYMENT OF UTILITY USER TAX 9
SECTION 5(b)(v). SCHOOL FEES 10
TRAFFIC MITIGATION AND REDUCED VEHICLE TRIPS 10
SECTION 5(c)(ii). MENLO PARK TRAFFIC MITIGATION 10
SECTION 5(c)(iii). EAST PALO ALTO VOLUNTARY MITIGATION 10 SECTION 5(c)(iv). CONTRIBUTIONS TO AC TRANSIT 10
SECTION 5(c)(v). OPTICOM PAYMENTS 11
SECTION 5(c)(vi). CAL TRAIN GO PASSES 11
SECTION 5(c)(vii). MARGUERITE SHUTTLE SERVICE 11
SECTION 5(c)(viii). TRANSPORTATION DEMAND MANAGEMENT COORDINATOR 12 SECTION 5(c)(ix). MONITORING OF TDM PROGRAMS 12
LINKAGES 14
SECTION 5(d)(i). INTERMODAL TRANSIT FUND 14
SECTION 5(d)(ii). QUARRY ROAD FUND 14
SECTION 5(d)(iii). STANFORD BARN CONNECTION 14
INFRASTRUCTURE, SUSTAINABLE NEIGHBORHOODS AND COMMUNITIES, AND AFFORDABLE HOUSING 15 SECTION 5(e). 15
CLIMATE CHANGE 15
SECTION 5(f). CLIMATE CHANGE FUND 15
SATISFACTION OF CONDITIONS OF APPROVAL 15
SECTION 5(h). SATISFACTION OF ALL CONDITIONS OF APPROVAL 15 CONCLUSION 16
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ANNUAL REPORT 2023-24 1

EXECUTIVE SUMMARY
On June 6, 2011, the Stanford University Medical Center parties (now Stanford Medicine)—comprised of Stanford Hospital and Clinics (now Stanford Health Care), Lucile Packard Children’s Hospital, and Stanford University—entered into a Development Agreement with the City of Palo Alto, committing to provide a range of community benefits in exchange for vested development rights to develop and use the Stanford Medicine Renewal and Replacement Project (“Renewal Project”) facilities in accordance with the approvals granted by the City, and a streamlined process for obtaining subsequent project approvals.

The Renewal Project—driven by a growing demand for healthcare services, state-mandated seismic safety requirements, and the need to replace outmoded facilities with modern, technologically advanced spaces—is transforming the way that healthcare is delivered and research is conducted.

Today, thirteen years after the execution of the Development Agreement, the Lucile Packard Children’s Hospital Expansion and the new Stanford Hospital are now open for patient care, and the School of Medicine has completed the first phase of development of its replacement facilities, with its BioMedical Innovations building open for research. Interior renovations within the 1989 portion of the preexisting Stanford Hospital facility are well underway, and are expected to continue for the next several years, bringing the facility up to modern healthcare standards.

Against this backdrop, Stanford Medicine submits its Annual Report in compliance with Section 12(c) of the Development Agreement, and looks forward to continued collaboration with the City of Palo Alto in advancing the goals of both Stanford Medicine and the broader community.

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2 ANNUAL REPORT 2023-24

BACKGROUND AND PURPOSE
The Palo Alto City Council’s unanimous approval of the entitlements for the Stanford Medicine Renewal and Replacement Project in July 2011 has paved the way for a historic investment in new and replacement facilities for Stanford Medicine. The project approvals—including new zoning for the Renewal Project sites, a conditional use permit, architectural review approval, and the execution of a Development Agreement—allow for the construction of approximately 1.3 million net new square feet of hospital facilities, clinics, medical offices, and medical research spaces, and are enabling the Hospitals to optimize the delivery of healthcare services to patients, and maintain their position as leading providers of world-class healthcare.

In order to facilitate this important replacement and expansion work, the Stanford Medicine parties entered into a Development Agreement with the City of Palo Alto, which includes a comprehensive package of community benefits and additional development conditions. In exchange for these benefits, the City has vested for a period of 30 years Stanford Medicine’s rights to develop and use the property in accordance with the project approvals, and agreed to streamline the process for obtaining subsequent approvals.

The terms of the Development Agreement (Section 12(c)) provide for a periodic review of compliance, and require that Stanford Medicine submit an Annual Report to the City of Palo Alto’s Director of Planning and Community Environment each year within 30 days of the anniversary of the agreement effective date (June 6, 2011). The Annual Report is to summarize Stanford Medicine’s progress on the Renewal Project, including a list of net new square footage for which a certificate of occupancy has been received, and a description of the steps that Stanford Medicine has taken to comply with the obligations listed in Section 5 of the Development Agreement. With this report, Stanford Medicine fulfills these requirements.

Within 45 days of receipt of this Annual Report, the City will prepare a Supplement to the Annual Report, to provide an accounting of the City’s balances and expenditures from each of the City Funds and how they were used.

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ANNUAL REPORT 2023-24 3
2023-2024 SUMMARY OF PROGRESS
The Renewal Project has reached key milestones in the past several years, with the opening of the Lucile Packard Children’s Hospital expansion in 2017 and the opening of the New Stanford Hospital in 2019, and most recently the opening of the School of Medicine’s BioMedical Innovations building in 2020

1. While the COVID-19 pandemic changed the pace of progress on the Renewal Project, as Stanford Medicine focused resources on pandemic response, including launching clinical trials for therapeutic treatments for COVID-19 and establishing community testing and vaccination sites, it also highlighted the importance of modern, state-of-the-art facilities to support Stanford Medicine’s research and patient care.

The section to follow provides an overview of central goals for the project elements that presently are under construction or nearing construction, a synopsis of progress to date, as well as a preview of near- term upcoming activities.

LUCILE PACKARD CHILDREN’S HOSPITAL
In response to growing community needs for specialized pediatric and obstetric care, Lucile Packard Children’s Hospital opened an expanded facility in late 2017. The new Main building, located adjacent to the preexisting Lucile Packard Children’s Hospital (West building), provides patients and doctors with the most modern clinical advancements and technology, while also creating a more patient- and family- centered environment of care, with additional single-patient rooms and more spaces for families to be with their child during treatment and recovery.

The LPCH Main building features a new entrance lobby, public concourse with dining, three floors of nursing units, and new patient rooms. Spaces have been designed with an attention to natural light and views, and the exterior grounds—more than 3.5 acres of outdoor areas and gardens—provide a park-like setting for patients, families, and visitors.
1 Temporary certificate of occupancy was issued in 2020; final certificate of occupancy was issued in 2021.

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LPCH is currently embarking on improvements to its preexisting West building which will modernize its infrastructure and provide a more comfortable patient experience. These improvements include a redesigned main lobby entry and drop-off for the West Building; plans were formally submitted to the City for Architectural Review in Summer 2022 and were approved in Fall 2023.

STANFORD HEALTH CARE
Stanford Health Care is constructing new and replacement hospital facilities to usher in a new era of advanced patient care. Growth in patient volumes and rapidly changing medical technology have rendered much of the existing midcentury hospital infrastructure inadequate, while new seismic safety requirements have accelerated the need to construct replacement facilities.

In November 2019, Stanford Health Care’s first phase of facilities renewal completed as the New Stanford Hospital received its license from the State Department of Public Health and opened to patient care. With the new Stanford Hospital now complete, Stanford Health Care has begun a series of renovations within its preexisting facilities, including the conversion of shared patient rooms into private rooms within the 1989 portion of the Hospital; this renovation work is proceeding in phases over the next several years.

In addition, to enable the conversion of shared patient rooms to private rooms, Stanford Health Care is also planning an addition to the preexisting Hospital of approximately 37,000 square feet. This proposed addition received Architectural Review approval in March 2022, and a City grading / excavation permit was issued in June 2022. Grading activity is ongoing.
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SCHOOL OF MEDICINE
The Stanford University School of Medicine is replacing its outmoded research buildings with new state-of-the-art facilities designed to support contemporary translational research. The new facilities will accommodate 21st century medical advancements and enable the development of new medical innovations, featuring integrated laboratory suites, with easier access between labs and support facilities, enabling transparency, flexibility, and collaboration.

The first phase of School of Medicine development (BioMedical Innovations Building 1, or “BMI-1”) is now complete, having received a certificate of occupancy in Spring 2021, and features four above-grade floors of research labs and light-filled gathering places, and a lower basement level for utility support, as well as a connective tunnel to other nearby research facilities. Building interiors were designed for best practices for laboratory design safety and space allocation, with a flexible template to maximize efficient use of space and ease of renovation. The four above-grade floors provide space for a mix of disciplines, basic and clinical research, wet and dry labs, and leading-edge translational studies. 2023-2024 SUMMARY OF PROGRESS
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BLAKE WILBUR DRIVE ROADWAY EXTENSION
As required by the 2011 Project Approvals, a new link roadway has now been established between Sand Hill Road and Welch Road. This roadway, which was completed in Fall 2023, connects Durand Way to Blake Wilbur Drive, and provides an important automobile, bicycle, and pedestrian connection in the vicinity of the Medical Center. Specifically, it serves as an uncongested route for emergency vehicles accessing the medical campus via Sand Hill Road, and provides improved access to both the Main Medical Campus and the outer Welch medical office buildings. The new roadway includes two travel lanes in each direction, Class II bicycle lanes, sidewalks with planter strips including new tree plantings and bioretention areas, new signal poles, and underground utilities. 2023-2024 SUMMARY OF PROGRESS
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2023-2024 SUMMARY OF PROGRESS

NET NEW SQUARE FOOTAGE
The following table summarizes the net new square footage for which a certificate of occupancy has been issued.

PROJECT COMPONENT GROSS SQUARE

FOOTAGE

STANFORD HEALTH CARE
1101 Welch demolished (40,100)
500 Pasteur 719,266
Total 679,166
LUCILE PACKARD CHILDREN’S HOSPITAL EXPANSION
701 Welch demolished (56,300)
703 Welch demolished (23,500)
Lucile Packard Children’s Hospital Expansion 446,088
Total 366,288

SCHOOL OF MEDICINE
BioMedical Innovations building 196,921
Partial decant of Boswell, Grant, Alway, Lane, Edwards (22,614) Total 174,307

HOOVER PAVILION
Miscellaneous shops and storage demolished (13,831)
Stanford Neuroscience Health Center (Hoover MOB) 91,605 Total 77,774
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COMPLIANCE WITH DEVELOPMENT AGREEMENT OBLIGATIONS
This section of the Annual Report summarizes the steps that Stanford Medicine has taken to comply with its obligations under Section 5 of the Development Agreement.

HEALTH CARE BENEFITS
In addition to the health care funds listed below, Stanford Medicine provides certain intrinsic benefits to the community, as both a global leader in medical care and research, and as a community healthcare services provider. The Renewal Project enables Stanford Medicine to continue its important work, and the addition of more beds for adults and children will help to alleviate overcrowding. Additionally, the new hospital facilities provide critical emergency preparedness and response resources for the community in the event of an earthquake, pandemic, or other major disaster.

Section 5(a)(ii). Fund for Healthcare Services
The Hospitals have designated the amount of $3 million for Healthcare Services, which will increase to $5.6 million by December 31, 2025. No further action is required until 2026. This amount will be reconciled with the construction use tax payments as described in Development Agreement Section 5(b) (ii)(C), and will be spent between 2026 and 2036.

Section 5(a)(iii). Fund for Community Health and Safety Programs Stanford Medicine has contributed a single lump-sum payment of $4 million to establish a Community Health and Safety Program Fund for the City of Palo Alto. This fund is to be distributed to selected community health programs that benefit residents of the City, including the Project Safety Net Program, a community-based mental health plan for youth well-being in Palo Alto. A joint committee is to be established to evaluate proposals regarding the other specific programs to receive funding, composed of two representatives selected by Stanford Medicine and two representatives selected by the City; this committee shall make annual recommendations to the City Council regarding proposed disbursements from the Community Health and Safety Program Fund, and the City Council shall use its reasonable discretion to decide whether to accept, reject, or modify the joint committee recommendations.

Stanford Medicine provided the entire required contribution to the Community Health and Safety Program Fund on August 25, 2011. No further action is required by Stanford Medicine to comply with this Development Agreement provision, though in the past two years Stanford Medicine has engaged with City staff to establish the joint committee to evaluate proposals for programs to receive funding. Based on this engagement, the City intends to use the remaining funds to support the Psychiatric Emergency Response Team (PERT), which will be operated in partnership with the Santa Clara County Behavioral Health Services Department. As required by Development Agreement Section 12(d), the City will provide yearly Supplements to the Annual Report to provide an accounting of the City’s expenditures from this fund, and the purposes for which the expenditures were used.

PALO ALTO FISCAL BENEFITS
The Stanford Medicine Renewal Project brings considerable fiscal benefits to the City of Palo Alto. The project was expected to generate $8.1 million in sales and use tax revenues for the City, and multiple mechanisms have been put into place to ensure that this target is met. The Development Agreement also provides for further fiscal benefits to the City, including a payment by Stanford Medicine to fund the City’s operating deficit, and the payment of utility user taxes and school fees.

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Sections 5(b)(i) and 5(b)(ii). Payment of Sales and Use Taxes As required by the Development Agreement, Stanford Medicine submitted its annual Construction Sales and Use Tax monitoring report to the City on June 28, 2024. The Stanford Medicine parties will continue to submit such a report annually during the construction period for the Renewal Project so that the City can determine the share of construction use taxes that it has received as a result of the Renewal Project.

Each year, within 60 days of receiving the monitoring report, the City will provide its determination of the amount of construction use taxes that it has received as a result of the Renewal Project during the preceding calendar year. In August 2026 or soon thereafter, Stanford Medicine and the City will conduct a reconciliation process to confirm that the City has received at least $8.1 million in construction use taxes as a result of the Renewal Project, as further described in Development Agreement Section 5(b)(ii).

To date, Stanford Medicine has taken the following steps detailed below to maximize the City’s allocation of sales and use taxes associated with Project construction and operation. Documentation of each of these items is included in the 2023 construction use tax monitoring report already submitted. • Stanford Medicine has obtained all permits and licenses necessary to maximize the City’s allocation of construction use taxes derived from the project, including California Seller’s Permits and Use Tax Direct Pay Permits.
• Stanford Medicine has designated and required all contractors and subcontractors to designate the project site as the place of sale of all fixtures furnished or installed as part of the project. • Stanford Medicine has designated and required all contractors and subcontractors to designate the project site as the place of use of all materials used in the construction of the project. • Stanford Medicine has required all contractors and subcontractors to allocate the local sales and use taxes derived from their contracts directly to the City. Stanford Medicine has used best efforts to require contractors and subcontractors to complete and file any forms required by the State Board of Equalization to effect these designations.
• Both Hospitals have obtained use tax direct pay permits from the State of California for their existing facilities in order to increase the City tax allocation for the Hospitals’ purchases. The Hospitals will maintain the use tax direct pay permit for the life of the project. • Finally, Stanford Medicine has assisted the City in establishing and administering a Retail Sales and Use Tax Reporting District for the Renewal Project, to enable the City to track the generation, allocation, reporting and payment of sales and use taxes derived from the Project.

Section 5(b)(iii). Funding of Operating Deficit
In order to assure that City costs associated with the Renewal Project do not exceed revenues to the City resulting from construction and operation of the project, Stanford Medicine has provided to the City a single lump sum payment in the amount of $2,417,000. This payment was made on August 25, 2011. No further action is required by Stanford Medicine to comply with this Development Agreement provision.

Section 5(b)(iv). Payment of Utility User Tax
Stanford Medicine will pay the City a utility user tax at a minimum rate of 5 percent of all electricity, gas, and water charges allocable to new construction completed as part of the project for the life of the project.

This rate may be increased by the City as provided by Section 2.35.100(b) of the Municipal Code. The 5 percent utility user tax is currently being paid by Stanford Medicine.

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Section 5(b)(v). School Fees
Stanford Medicine will pay to the City—which is then to forward to the Palo Alto Unified School District— school fees upon issuance of each building permit from the City or OSHPD, in the amount that is generally applicable to non-residential development at the time of payment based upon net new square footage, as defined in the Development Agreement.

School fees were paid in 2012 for LPCH and SHC in the amounts of $188,815 and $153,802, respectively. In July 2013, additional school fees were paid in the amount of $7,051 to account for additional program square footage for the New Stanford Hospital and Garage. In May 2014, an additional payment of school fees in the amount of $16,119 was made to account for the incremental square footage associated with the Hoover Medical Office Building, beyond the 60,000 square feet originally planned. In November 2015, additional school fees in the amount of $461.16 were paid to account for incremental square footage for the New Stanford Hospital Garage. In May 2022, school fees in the amount of $22,641 were paid to Palo Alto Unified School District to account for Stanford Health Care’s planned addition to the 1989 portion of the preexisting hospital.

TRAFFIC MITIGATION AND REDUCED VEHICLE TRIPS
Stanford Medicine has taken a number of steps to mitigate the potential traffic impacts projected at full project buildout. Stanford Medicine provides a robust transportation demand management program, offering a variety of incentives for employees to forego driving alone to work. As required by the Development Agreement, Stanford Medicine has taken the additional actions outlined below.

Section 5(c)(ii). Menlo Park Traffic Mitigation
Stanford Medicine agreed to contribute to the City of Menlo Park a total of $3,699,000 for use in connection with traffic mitigation, infrastructure enhancements, and the promotion of sustainable neighborhoods and communities and affordable housing. This contribution has been made in three equal payments; the first payment of $1,233,000 was made on August 19, 2011. The second payment of $1,233,000 was made on December 5, 2012, following the November 2012 issuance of the first Hospital foundation permit. The final payment in the amount of $1,233,000 was made on December 14, 2017, within 30 days from issuance of the first Hospital occupancy permit. No further action is required by Stanford Medicine to comply with this Development Agreement provision.

Section 5(c)(iii). East Palo Alto Voluntary Mitigation Stanford Medicine has contributed a single lump sum payment of $200,000 to East Palo Alto to be used for roadway and traffic signal improvements on University Avenue. This payment was made on August 19, 2011. No further action is required by Stanford Medicine to comply with this Development Agreement provision. In the event that Stanford Medicine does not meet the alternative transportation mode goals specified in the Development Agreement by 2026 and is assessed an approximately $4 million payment under Development Agreement section 5(c)(ix)(B), the City will be required to remit $150,000 of such payment to the City of East Palo Alto.

Section 5(c)(iv). Contributions to AC Transit
The Hospitals committed to the following actions within 30 days from issuance of the first Hospital occupancy permit, and have fulfilled these commitments as outlined below:
• The Hospitals agreed to offer a one-time payment of $250,000 to AC Transit to be used for capital

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improvements to the U-Line to increase capacity (Section 5(c)(iv)(A)). As required, the Hospitals offered to contribute $250,000 to AC Transit for capital improvements to the U Line; this offer was accepted, and the payment was made on January 5, 2018.
• The Hospitals agreed to offer to make annual payments to AC Transit in a reasonable amount, not to exceed $50,000, to be used for operating costs of the U-Line to maintain a load factor for bus service to the Medical Center of less than 1 (Section 5(c)(iv)(B)). The Hospitals are making annual payments to AC Transit for purposes of U-Line operating costs. • In order to encourage Hospital employees living in the East Bay to use public transit for their commute, the Hospitals committed to using best efforts to lease 75 parking spaces at the Ardenwood Park and Ride lot, or an equivalent location, at a cost not to exceed $45,000 per year (Section 5(c)(iv)(C)). The Hospitals had been meeting this requirement through the lease of parking spaces in Newark, but bus service to these spaces was suspended during the pandemic due to low ridership. East Bay riders continue to be served by the U Line and DB Express, and the Hospitals and AC Transit are currently finalizing a parking agreement for the Ardenwood Park & Ride Lot in order to better serve these commuters.

Section 5(c)(v). Opticom Payments
Within 30 days from issuance of the first Hospital occupancy permit, the Hospitals committed to pay $11,200 to the City of Palo Alto to be used for the installation of Opticom traffic control systems at the following seven intersections: El Camino Real/Palm Drive/University Avenue; El Camino Real/Page Mill Road; Middlefield Road/Lytton Road; Junipero Serra/Page Mill Road; Junipero Serra/Campus Drive West; Galvez/Arboretum; and the Alpine/280 Northbound ramp. However, since the time that this commitment was made, the City determined that Opticom systems are outdated, and proposed the purchase and installation of the ATMS.now Emergency.now package, which would allow coordinated prioritization at all City-maintained traffic signals. Agreement to this change in traffic signal priority system is documented in a letter dated December 12, 2017 from the City Manager to the SUMC Parties, which was accepted and agreed to by the SUMC Parties by countersigned letter. The required payment was made on December 12, 2017, within 30 days of issuance of the first Hospital occupancy permit.

Section 5(c)(vi). Caltrain GO Passes
The Development Agreement requires that the Hospitals purchase annual Caltrain GO Passes for all existing and new Hospital employees who work more than 20 hours per week at a cost of up to approximately $1.8 million per year, beginning on September 1, 2015. This obligation is expected to continue for a period of 51 years.

Hospital management accelerated the purchase of the annual GO Pass for Hospital employees, and began providing free GO Passes to employees commencing on January 1, 2012. Annual passes were purchased again for all existing and new eligible employees for 2024.

Section 5(c)(vii). Marguerite Shuttle Service
The Hospitals will fund the reasonable costs, in an approximate amount of $2 million, for the purchase of additional shuttle vehicles for the Marguerite shuttle service, as and when required to meet increased demand for shuttle service between the project sites and the Palo Alto Intermodal Transit Station. In addition, the Hospitals will fund as annual payments the reasonable costs, in an approximate amount of $450,000 per year, to cover the net increase in operating costs for the Marguerite Shuttle. Demand for the Marguerite shuttle increased in 2012, and the Hospitals funded the purchase of three new hybrid shuttles to meet this increased demand. Since this time, the Hospitals have funded as annual payments

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the reasonable costs of the net increase in operating costs for the Marguerite Shuttle.

Section 5(c)(viii). Transportation Demand Management Coordinator The Development Agreement requires that the Hospitals employ an onsite qualified Transportation Demand Management (TDM) Coordinator for Stanford Medicine, commencing on September 1, 2015, and continuing through the life of the Renewal Project.

Because the Hospitals accelerated the purchase of the Caltrain GO Pass, the Hospitals also accelerated the hiring of the TDM Coordinator, filling this position in March 2012. The TDM Coordinator is responsible for overseeing the analysis, development, and implementation of programs to advance the Hospitals’ TDM objectives. Specific duties that are carried out in collaboration with Stanford Transportation include raising awareness among commuters about alternative transportation options and Stanford’s commute incentive programs; providing alternative commute planning assistance and responses to customer inquiries; writing and editing electronic and print communications; coordinating and staffing outreach events, such as free transit pass distributions and employee fairs; and providing alternative transportation information and resources at new employee orientations.

The Hospitals also established a new role, Transportation/TDM Director, that is in addition to the previously established TDM Coordinator role, to lead the effort of increasing the use of alternative transportation among Hospital employees.

Section 5(c)(ix). Monitoring of TDM Programs
The Hospitals are required to submit annual monitoring reports showing the current number of employees

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employed over 20 hours per week; the number of employees using an alternative transportation mode as documented by a study or survey to be completed by the Hospitals using a method mutually agreeable to the City and the Hospitals; and the efforts used by the Hospitals to attempt to achieve the Alternative Mode Targets identified in the Development Agreement. The Development Agreement specifies payments to be made in the event that such targets are not met during particular time periods. Stanford Medicine submitted its 2024 Alternative Mode Share Report to the City on May 31, 2024; this report shows an alternative mode split of 30.5% for the Hospitals, reflecting a continuation of the trend of on- campus Hospital staff shifting back to mass transportation and other alternative modes.

In previous years where the pandemic had a pronounced impact on daily life, a shift was observed from alternative modes to single-occupancy vehicles, and the Hospitals’ previously successful alternative mode share slipped significantly. This change in behavior was attributed to reduced levels of transit service at the time and perceived health risks of public transportation. Further exacerbating these issues was the inability for staff to work remotely as they primarily occupy roles which require direct patient interface or otherwise require physical presence. As the pandemic recedes into the distance, transit service levels have normalized and concerns about the health risks of public transit have diminished.

The 2023-24 survey results demonstrate that the Hospitals are continuing along the path to recovery of their previously successful alternative mode share. Reducing drive-alone rates for employees remains a priority, and the Hospitals continue to pilot additional programs to meet the unique needs of their employees while continuing to provide and promote existing alternative mode opportunities.

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LINKAGES
To further encourage use of Caltrain, bus, and other transit services, and to enhance and encourage use of pedestrian and bicycle connections between Stanford Medicine and downtown Palo Alto, Stanford Medicine has funded the following specific infrastructure improvements.

Section 5(d)(i). Intermodal Transit Fund
Stanford Medicine has provided to the City one lump sum payment of $2.25 million for improvements to enhance the pedestrian and bicycle connection from the Palo Alto Intermodal Transit Center to the existing intersection of El Camino Real and Quarry Road. Up to $2 million of this amount is to be used by the City for the development of an attractive, landscaped passive park/green space with a clearly marked and lighted pedestrian pathway, benches, and flower borders. Stanford Medicine paid the entire required amount for the Intermodal Transit Fund on August 25, 2011. No further action is required by Stanford Medicine to comply with this Development Agreement provision. As required by Development Agreement Section 12(d), the City will provide yearly Supplements to the Annual Report to provide an accounting of the City’s expenditures from this fund, and the purposes for which the expenditures were used.

In Summer 2017, prior to issuance of the first Hospital Occupancy Permit, the City completed a temporary path with associated lighting, landscaping / green space, benches, and flower borders from the transit center to the existing crosswalk at the intersection of El Camino Real and Quarry Road. Available funds remaining will be applied to the construction of permanent improvements in the future, which may include a bus transit connection in addition to the planned bicycle and pedestrian improvements.

Section 5(d)(ii). Quarry Road Fund
Stanford Medicine has provided to the City one lump sum payment of $400,000 for improvements to and within the public right-of-way to enhance the pedestrian and bicycle connection from the west side of El Camino Real to Welch Road along Quarry Road, including urban design elements and way finding, wider bicycle lanes, as necessary, on Quarry Road, enhanced transit nodes for bus and/or shuttle stops, and prominent bicycle facilities. Stanford Medicine paid the entire required amount for the Quarry Road Fund on August 25, 2011. No further action is required by Stanford Medicine to comply with this Development Agreement provision. As required by Development Agreement Section 12(d), the City will provide yearly Supplements to the Annual Report to provide an accounting of the City’s expenditures from this fund, and the purposes for which the expenditures were used. The City was required to construct the improvements prior to issuance of the first Hospital Occupancy Permit, but as agreed to with Stanford Medicine, delayed implementation of these improvements until utility trenching to the Medical Center was complete. In late 2018, the City completed these improvements, including enhanced crosswalks and bicycle striping and signage.

Section 5(d)(iii). Stanford Barn Connection
Stanford Medicine agreed to construct up to $700,000 of improvements to enhance the pedestrian connection between the Main Medical Campus and the Stanford Shopping Center from Welch Road to Vineyard Lane, in the area adjacent to the Stanford Barn prior to issuance of the first Hospital Occupancy permit. Construction of the improvements completed in November 2017, in advance of issuance of the first Hospital Occupancy permit. No further action is required by Stanford Medicine to comply with this Development Agreement provision.

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INFRASTRUCTURE, SUSTAINABLE NEIGHBORHOODS AND COMMUNITIES, AND

AFFORDABLE HOUSING
Section 5(e). Infrastructure, Sustainable Neighborhoods and Communities, and Affordable Housing Fund
Stanford Medicine agreed to contribute a total amount of $23.2 million toward City of Palo Alto infrastructure, sustainable neighborhoods and communities, and affordable housing. As required by the Development Agreement, this contribution has been made in three equal payments. The first payment, in the amount of $7,733,333, was made on August 25, 2011; the second payment of $7,733,333 was made on December 5, 2012, following the November 2012 issuance of the first Hospital foundation permit; and the final payment of $7,733,333 was made on December 12, 2017, within 30 days from issuance of the first Hospital occupancy permit. No further action is required by Stanford Medicine to comply with this Development Agreement provision. As required by Development Agreement Section 12(d), the City will provide yearly Supplements to the Annual Report to provide an accounting of the City’s expenditures from this fund, and the purposes for which the expenditures were used.

The City will use $1,720,488 of these funds in the same manner as funds collected under the City’s housing fee ordinance.

CLIMATE CHANGE
Section 5(f). Climate Change Fund
Stanford Medicine agreed to contribute a total amount of $12 million toward City projects and programs for a sustainable community, including programs identified in the City’s Climate Action Plan, carbon credits, and investments in renewable energy and energy conservation. As required by the Development Agreement, this contribution has been made in three equal payments. The first payment, in the amount of $4 million, was made on August 25, 2011; the second payment of $4 million was made on December 5, 2012, following the November 2012 issuance of the first Hospital foundation permit; and the final payment of $4 million was made on December 12, 2017, within 30 days from issuance of the first Hospital occupancy permit. No further action is required by Stanford Medicine to comply with this Development Agreement provision. As required by Development Agreement Section 12(d), the City will provide yearly Supplements to the Annual Report to provide an accounting of the City’s expenditures from this fund, and the purposes for which the expenditures were used.

SATISFACTION OF CONDITIONS OF APPROVAL
Section 5(h). Satisfaction of All Conditions of Approval Stanford Medicine will satisfy all Conditions of Approval by the dates and within the time periods required by the project approvals, subject to modifications allowed by the Development Agreement, and has taken several steps in order to ensure that this requirement is met (Section 5(h)). The Conditions of Approval encompass conditions imposed by the Architectural Review Board, mitigation measures enumerated in the Mitigation Monitoring and Reporting Program, and conditions attached to the Conditional Use Permit.

In order to implement, monitor, and report on the implementation of this diverse array of conditions, Stanford Medicine, with input from City planning staff, has created two Excel spreadsheet tracking and reporting tools. These spreadsheets serve as a centralized repository for compliance monitoring information and documentation, and are updated by the Stanford Medicine project teams on a regular basis, and reviewed by the City.

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CONCLUSION
As the Renewal Project completes its thirteenth year, Stanford Medicine looks forward to continued engagement with the City of Palo Alto as the project continues to progress.

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ATTACHMENT B

LINKS TO PRIOR SUMC ANNUAL REPORTS
SUMC Development Agreement Annual Reporting
Stanford University Medical Center Renewal & Replacement Project Webpage • https://www.paloalto.gov/News-Articles/Planning-and-Development-Services/SUMC-Renewal- Replacement-Project
Prior Fiscal Year Annual Reports:
•Fiscal Year 2011-2012
https://www.paloalto.gov/files/assets/public/v/1/planning-amp-development-services/file- migration/development-projects/sumc/2011-12-annual-report.pdf •Fiscal Year 2012-2013
https://www.paloalto.gov/files/assets/public/v/1/planning-amp-development-services/file- migration/development-projects/sumc/2012-13-annual-report.pdf •Fiscal Year 2013-2014
https://www.paloalto.gov/files/assets/public/v/1/planning-amp-development-services/file- migration/development-projects/sumc/2013-14-annual-report.pdf •Fiscal Year 2014-2015
https://www.paloalto.gov/files/assets/public/v/1/planning-amp-development-services/file- migration/development-projects/sumc/2014-15-annual-report.pdf •Fiscal Year 2015-2016
https://www.paloalto.gov/files/assets/public/v/1/planning-amp-development-services/file- migration/development-projects/sumc/2015-16-annual-report.pdf •Fiscal Year 2016-2017
https://www.paloalto.gov/files/assets/public/v/1/planning-amp-development-services/file- migration/development-projects/sumc/2016-17-annual-report.pdf •Fiscal Years 2017-2018, 2018-2019, and 2019-2020
https://www.paloalto.gov/files/assets/public/v/1/planning-amp-development-services/file- migration/development-projects/sumc/2017-2020-combined-annual-report.pdf •Fiscal Year 2020-2021
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• Fiscal Year 2021-2022
https://www.paloalto.gov/files/assets/public/v/1/planning-amp-development-services/file- migration/development-projects/sumc/2021-2022-sumc-annual-report.pdf •Fiscal Year 2022-2023
https://www.paloalto.gov/files/assets/public/v/1/planning-amp-development-services/file- migration/development-projects/sumc/2022-2023-annual-report.pdf Item 7
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SUMC Development Agreement, Section 5 - SUMC Parties’ Promises Attachment C FY 2023-2024
1 SUMC Development Agreement Compliance: FY 2023-2024
Health Care Benefits
DA
Section Description Summary Activity Complies?
5(a)(ii)
Fund for
Healthcare
Services
Financial assistance
for Palo Alto
residents
SUMC establishment of a $3M fund that will
grow to $5.6M by December 31, 2025. Fund
will be used in even increments over a ten-
year period from 2026-2036 to assist Palo
Alto residents who have self-payment
responsibilities beyond their financial
means, as described in Section 5(a)(ii).

Yes, complies – No activity
required in FY 2023-24.
5(a)(iii)
Fund for
Community
Health and
Safety Programs
$4M fund for
selected community
health programs for
Palo Alto residents
$4M City fund established on August 25,
2011. The joint committee formed according
to the Development Agreement and
approved $366,000 in expenditures from
this fund for FY 2023-24, however it was not
used.

Yes, complies - Fund
activity and balances in FY
2023-24 reported in
Attachment E.

Fiscal Benefits
DA
Section Description Summary Activity Complies?
5(b)(i), (ii)
Payment of
Sales and Use
Taxes
Activities to
maximize sales and
use taxes paid to the
City
SUMC contributes to General Fund Sales and
Use Tax revenues via construction-related
activities. The City reviews the Construction
Sales & Use Tax Monitoring Report that is
Yes, complies - SUMC
timely submitted the
Construction Sales & Use
Tax Monitoring Report for
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SUMC Development Agreement, Section 5 - SUMC Parties’ Promises Attachment C FY 2023-2024
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submitted by SUMC on June 30 of each year.

The City submits a letter to SUMC each year
that notes local tax received from SUMC
project activities for the year. Based upon
the City’s review of the annual Construction
Sales and Use Tax Monitoring Report,
revenues for calendar years 2011 through
2023 have totaled $5,497,299.
the previous calendar year.

The City sent their
required response. This
annual reporting assists in
the process of ensuring
that the City would receive
no less than $8.1M in
construction sales and tax
revenue by December 31,
2025.
5(b)(iii)
Funding of
Operating
Deficit /
Expansion Cost
Mitigation
$2.417M fund to
assure City costs
associated with the
project do not
exceed revenues
resulting from
construction and
operation of the
project.
$2.417M fund established on August 25,
2011. $750,000 were transferred in FY 2023-
2024
Yes, complies - Fund
activity and balances in FY
2023-24 reported in
Attachment E.
5(b)(iv) Payment of
Utility Users Tax
5% tax on all
electricity, gas and
water charges on
new construction
Established in past fiscal years, the Utility
Users Tax is paid through the normal billing
process for each building.

Yes, complies.
5(b)(v) School Fees
PAUSD school fees have been paid based on
the net new square footage reported in the
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SUMC Development Agreement, Section 5 - SUMC Parties’ Promises Attachment C FY 2023-2024
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Payment of PAUSD
fees for net new
square footage
SUMC Annual Report. No occupancy for new
square footage occurred in FY 2023-24.

Yes, complies – No activity
in FY 2023-24
Traffic Mitigation and Reduced Vehicle Trips
DA
Section Description Summary Activity Complies?
5(c)(ii)
Menlo Park
Traffic
Mitigation
$3,699,000 payment
for traffic mitigation,
infrastructure,
sustainable
neighborhoods,
affordable housing
All required payments were made to Menlo
Park between 2011-2017. No further activity
needed.

Yes, complies - completed
in FY 2017-18.
5(c)(iii)
East Palo Alto
Voluntary
Mitigation
$200K for roadway
and signal
improvements on
University Ave.
$200K payment made on
August 19, 2011.

Yes, complies - completed
in FY 2011-12.
5(c)(iv) Contributions
to AC Transit
U-line capital
improvements, low
load factor ratios,
parking spaces at
Ardenwood Park &
Ride
$250K payment made to AC Transit on
January 5, 2018.

SUMC is also invoiced by AC Transit for
payments throughout the year that total
over the $50K per year discussed in the
SUMC Development Agreement. Payments
to AC Transit are required for the life of the
project.

Since FY 2020-2021, SUMC has leased 100
Yes, complies.

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parking spaces in Newark (35263 Fircrest
Drive).
5(c)(v) Opticom
Payments
$11,200 payment
for Opticom traffic
control system at 7
intersections
$11.2K payment made to the City in FY
2017-2018. As the City has upgraded
systems, the City and SUMC agreed through
a letter exchange that the payment could be
used for the new coordinated prioritization
signaling at City-maintained traffic signals.

Yes, complies - completed.
5(c)(vi) Caltrain Go
Passes
SUMC purchase of
passes for all
existing and new
hospital employees
working
>20hrs/week
Go Passes have been purchased per the
Development Agreement since January 1,
2012, including for FY 2023-2024.

Yes, complies.
5(c)(vii) Marguerite
Shuttle Service
Purchase of
additional shuttles
to meet demand
Between 2011-2018, the fleet was expanded
to five renewable diesel-electric hybrid
buses and 41 all-electric buses.

Yes, complies - completed.
5(c)(viii)
SUMC
Transportation
Demand
Management
SUMC hires
coordinator to
promote alternative
transportation
options
TDM Coordinator was hired in March 2012.

This position has since been elevated to a
TDM Program Manager position and the
position remains filled.

Yes, complies.

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SUMC Development Agreement, Section 5 - SUMC Parties’ Promises Attachment C FY 2023-2024
5 SUMC Development Agreement Compliance: FY 2023-2024
(TDM)
Coordinator
5(c)(ix) Monitoring of
TDM Programs
Yearly report
regarding
alternative transit
mode use
The SUMC parties found that the alternative
mode share milestone target of 33%
outlined in SUMC DA Section 5(c)(ix) was not
met for 2024.

SUMC timely submitted
their annual Alternative
Mode Share report for FY
2022-24. SUMC missed the
alternative mode share
target of 33% for one year.

No penalty is incurred
unless SUMC does not
meet the 2024 target in
2025.

Linkages
DA
Section Description Summary Activity Complies?
5(d)(i) Intermodal
Transit Fund
$2.25M payment to
improve pedestrian
linkages to PA
Intermodal Transit
Center
$2.25M City fund established on August 25,
2011. City constructed temporary
improvements prior to the issuance of the
first Hospital Occupancy Permit (LPCH) to
serve the linkage goal and functional
requirements.

There were no expenditures from this fund
during the reporting period FY 2023-2024.

Yes, complies - Fund
activity and balances in FY
2023-24 reported in
Attachment E.

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SUMC Development Agreement, Section 5 - SUMC Parties’ Promises Attachment C FY 2023-2024
6 SUMC Development Agreement Compliance: FY 2023-2024
5(d)(ii) Quarry Road
Fund
$400K payment to
improve pedestrian
linkages along
Quarry Road
$400K City fund established on August 25,
2011. City constructed the improvements
prior to the issuance of the first Hospital
Occupancy Permit (LPCH) to serve the
linkage goal and functional requirements.

Yes, complies –
Completed, as of FY 2019.
5(d)(iii) Stanford Barn
Connection
SUMC budgets up to
$700K for
connections in the
vicinity of barn
SUMC constructed the Stanford Barn
Connection prior to the issuance of the first
Hospital Occupancy Permit (LPCH) to serve
the linkage goal and facilities are fully
operational.

Yes, complies –
Completed.

Infrastructure, Sustainable Neighborhoods and Communities, and Affordable Housing DA
Section Description Summary Activity Complies?
5(e)
Infrastructure,
Sustainable
Neighborhoods
and
Communities,
and Affordable
Housing Fund
$23.2M payment for
these uses
$23.2M fund established between 2011-
2017. There were $5.3M expenditures
budgeted from this fund during the reporting
period FY 2023-24. Actual expenditure
$4.58M
The funds allotted to Affordable Housing
were fully exhausted in FY 2013 for the
Stevenson House Project, and in FY 2020 for
the Wilton Court Housing Project.

Yes, complies -Fund
activity and balances in FY
2022-2023 reported in
Attachment E.

Climate Change
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DA
Section Description Summary Activity Complies?
5(f)
Climate Change
– Sustainability
Programs
Benefit Fund
$12M payment for
climate change-
related projects and
programs
$12M fund established 2011-2017.

There were no expenditures from this fund
during the reporting period FY 2023-2024.

Yes, complies -Fund
activity and balances in FY
2023-24 reported in
Attachment E.

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ATTACHMENT D
FISCAL YEAR 2023-2024 ANNUAL REPORT SUPPLEMENT
SUMC Development Agreement Annual Reporting
Background and Purpose
On June 6, 2011, the City Council approved Comprehensive Plan amendments, zoning changes, a conditional use permit, annexation and design applications for the Stanford University Medical Center Facilities Renewal and Replacement Project (the “Projects”). The Projects include the construction of a new Stanford Hospital and clinics buildings, an expansion of the Lucile Packard Children’s Hospital, construction of new School of Medicine buildings, renovation of the existing Hoover Pavilion, construction of a new medical office building and parking garage at Hoover Pavilion, roadway improvements along Welch Road and Durand Way, and SUMC design guidelines. A Development Agreement (the “Agreement”) vesting these approvals was entered into between the SUMC Parties and the City and was effective on June 6, 2011 and continues for thirty (30) years from the effective date.

The Agreement requires an annual report, prepared by SUMC that outlines the activities of the preceding year and the efforts to fulfill the obligations of the Agreement.

Per the requirements of sections 12(a) and 12(c) of the Agreement, The City of Palo Alto is to prepare a supplement to the annual report that contains an accounting of the funds described in the Section 5 of the Agreement (“SUMC Parties’ Promises”) including the fund balances and expenditures and the purposes for which the expenditures were used.

Public Benefit Fund Accounting
This SUMC Annual Report Supplement covers the period during the thirteenth year of the Agreement:

June 6, 2023 through June 6, 2024. Accounting for the funds outlined extends through the end of the City’s FY 2024.

The specific funding accounts reported in this SUMC Annual Report Supplement are consistent with Section 5 of the Agreement. These funds have been assigned a unique cost center number for accounting purposes. This SUMC Annual Report Supplement also contains the investment earnings and the earnings allocation to the various cost centers.

In summary, the SUMC Parties have paid approximately $44.3 million in public benefit fees to the City since June 6, 2011 through the FY 2023-2024 reporting period. There were no required new payments from the SUMC Parties during the FY 2023-2024 reporting period.

The first payment of $20,800,333 on August 11, 2011 was for the following funds:
•Fund for Community Health and Safety, Project Safety Net (Section 5(a)(iii)); Item 7
Attachment D -
Supplement to the
Annual Report

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•Fund for Expansion Cost Mitigation (Section 5(b)(iii)); •Fund for Pedestrian and Bicycle Connections from Intermodal Transit Center to El Camino Real/Quarry Road Intersection (Section 5(d)(i));
•Fund for Public Right of Way Improvements to Enhance Pedestrian and Bicycle Connections on Quarry Road (Section 5(d)(ii));
•Fund for Infrastructure, Sustainable Neighborhoods and Communities and Affordable Housing (Section 5(e)), and
•Fund for Climate Change - Sustainable Programs Benefit (Section 5(f)(i)).

The second payment of $11,733,333 payment on December 5, 2012 was for the following funds:
• Fund for Infrastructure, Sustainable Neighborhoods and Communities and Affordable Housing (Section 5(e)) and
• Fund for Climate Change - Sustainable Programs Benefit (Section 5(f)(i)).

The third payment and final payment of $11,744,533 on December 12, 2017 was for the following funds:
•Fund for Infrastructure, Sustainable Neighborhoods and Communities and Affordable Housing (Section 5(e));
•Fund for Climate Change -Sustainable Programs Benefit (Section 5(f)(i)); and •Fund for Community Health and Safety, Project Safety Net (Section 5(a)(iii)).

Public Benefit Fund Expenditures
Expenditures and other activity occurred in the following funds in FY 2023-2024:

Budgeted:
•$366,000 transfer from the Community Health and Safety Fund to the General Fund (Police Department) for a Psychiatric Emergency Response Team (PERT); •$3.3 million transfer from the Infrastructure, Sustainable Neighborhoods and Communities, and Affordable Housing Fund to Capital Improvement Project Fire Station 4 Replacement (PE-18004); •$2.0 million transfer from the Infrastructure, Sustainable Neighborhoods and Communities, and Affordable Housing Fund to Capital Improvement Project Roth Building Rehabilitation (PF- 23001);
Actual:
•The total transfer from the Infrastructure, Sustainable Neighborhoods and Communities, and Affordable Housing Fund to Capital Improvement Project was slightly lower than budgeted, at $4,575,000;
•$750,000 was transferred from the Expansion Cost Mitigation fund for the Fire Station #4 Replacement (PE-18004)
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Annual Report

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: May 12, 2025
Report #:2502-4227
TITLE
Approval of Professional Services Contract No. C25193532 with Biggs Cardosa Associates Inc. in an Amount Not to Exceed $750,000 for On-Call Structural Engineering Services for City Structures including Bridges, Buildings, and Other Structures over a Period of Three Years; CEQA status – Not a Project

RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or their designee to execute Contract No. C25193532 with Biggs Cardosa Associates, Inc. to provide on-call structural engineering services for a term of three years in the amount of $250,000 per year, for a total not-to-exceed amount of $750,000.

BACKGROUND
The proposed on-call contract will use funding from the City Bridge Improvements capital improvement program (CIP) project (PE-20001) for as-needed structural inspections, evaluations, and design services for bridges, culverts, and guardrails, and funding for other City structures will be encumbered as task orders assigned to specific CIP projects, funded through those projects’ budgets as approved by Council.

The City owns and maintains about 173 bridge and culvert structures located in the public right- of-way and in parks and preserves. Of these, Caltrans inspects 26 structures and the City is responsible for inspecting the remaining 147 structures. In 2017, an assessment project inspected 50 City-owned bridges and culverts and recommended recurring inspections and short and long-term improvements. The City established a recurring bridge inspection and repair program in fiscal year 2020 which includes recurring inspections, structural evaluation, and recommendations for repairs and maintenance for the structures to meet functional and structural standards. Typically, the recommended recurring inspection frequency of the structures varies from two to four years depending on age and structural conditions. As part of the recurring bridge inspection and repair program, the City entered into a 3-year on-call Item 8
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structural engineering contract1 with Biggs Cardosa Associates, Inc. (Biggs Cardosa) in 2021 in the amount of $85,000 per year. The proposed contract replaces the previous on-call structural contract that has expired. Biggs Cardosa inspected a total of 42 bridge structures and prepared designs for repairs to 7 bridge structures under the previous on-call structural contract. The City’s contractor completed the repairs to the 7 structures in 2024. Biggs Cardosa also provided as-needed structural evaluation for other Public Works CIP projects.

Continuing the inspection and repair program will allow the City to maintain up-to-date inventory of bridges and culverts, identify potential safety and integrity issues, and implement recommended improvements. The on-call contract will also be used for structural needs for other Public Works CIP projects. Work can be authorized on a task order basis rather than requiring a separate contract each time the need for such services arises. The increase in the on-call contract amount from $85,000 per year to $250,000 per year accounts for structural evaluation and design services for other as-needed Public Works capital projects in addition to the bridge structures. The $250,000 on-call contract capacity will only be used if needed.

ANALYSIS
A Request for Proposals (RFP) was posted on OpenGov Procurement, the City’s eProcurement platform, and 3,406 vendors were notified. The solicitation period was for 28 days. Two proposals were received, but one proposal was deemed non-responsive due to not having a current DIR registration, a material requirement of the RFP. The solicitation closed on January 30, 2025.

Table #1: Summary of Request for Proposal
Proposal Description
On-Call Structural Engineering Services for
Bridges and Other City Structures, RFP No.
193532
Proposed Length of Project 3 years
Number of Vendors Notified 3,406
Number of Proposal Packages Downloaded 40
Total Days to Respond to Proposal 28 days
Pre-Proposal Meeting No
Number of Proposals Received 2
Public Link to Solicitation https://procurement.opengov.com/portal/palo- alto-ca/projects/138514
1 Biggs Cardosa Associates Inc. Professional Services Contract for On-Call Structural Engineering Services S21180444; https://www.paloalto.gov/files/assets/public/v/1/public-works/engineering-services/s21180444- bca_psa_fully-executed.pdf
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The proposals were evaluated and one proposal was determined to be responsive to the criteria identified in the RFP. Biggs Cardosa was selected based on the quality and effectiveness of their proposal, the experience of their assigned project staff with similar projects, and prior record of performance with the City. Interviews were not conducted for this evaluation. The hourly rates in the proposed contract are generally 6-12% higher than the 2023-2024 hourly rates in the previous contract for similar job classification. The hourly rates will remain firm for the first two years of the contract and the anticipated escalation in the third year is 3.5% to 6%, which is within the current industry standards. Rebidding the project would delay the contract and would be unlikely to produce more competitive rates. Therefore, staff recommends approval of Contract No. C25193532 (Attachment A) with Biggs Cardosa.

FISCAL/RESOURCE IMPACT
Funding for the on-call structural work will be encumbered as task orders assigned to specific CIP projects, funded through those CIP projects’ budgets as approved by Council.

STAKEHOLDER ENGAGEMENT
Although work under this contract is anticipated to address preventive and corrective maintenance for bridges and other ongoing structural needs, staff will engage the community and relevant Boards, Commissions, and Committees as necessary based on the specific nature of the work identified.

ENVIRONMENTAL REVIEW
Council approval of the proposed on-call structural contract does not constitute a project under CEQA.

ATTACHMENTS
Attachment A: Biggs Cardosa Associates, Inc. Contract C25193532 APPROVED BY:

Brad Eggleston, Director Public Works/City Engineer
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Professional Services
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CITY OF PALO ALTO CONTRACT NO. C25193532

AGREEMENT FOR PROFESSIONAL SERVICES

BETWEEN THE CITY OF PALO ALTO AND
BIGGS CARDOSA ASSOCIATES, INC.

This Agreement for Professional Services (this “Agreement”) is entered into as of the 21st day of April, 2025 (the “Effective Date”) , by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and BIGGS CARDOSA ASSOCIATES, INC. , a California corporation, located at 865 The Alameda, San Jose, CA 95126 (“CONSULTANT”).

The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference:

RECITALS

A. CITY intends to contract for as -needed, on-call structural engineering consultant services (the “Project”) and desires to engage a consultant to provide services for inspection, assessment, and design for repairs to City bridges, culverts, guardrails, and other structures in connection with the Project (the “Services”, as detailed more fully in Exhibit A).

B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services.

C. CITY, in reliance on these representations , desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.

NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows:

SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY.

Optional On-Call Provision (This provision only applies if checked and only applies to on-call agreements.)

CITY may elect to, but is not required to, authorize on-call Services up to the maximum compensation amount set forth in Section 4 (Not to Exceed Compensation).

CONSULTANT shall provide on-call Services only by advanced, written authorization from CITY as detailed in this Section. On-call Services, if any, s hall be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A -1 entitled “PROFESSIONAL SERVICES TASK ORDER”.

Each Task Order shall contain a specific scope of s ervices, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement.

Docusign Envelope ID: 705C0BD3-CF46-4357-AB9C-7D113BB2D69F Item 8
Attachment A - Biggs
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Contract C25193532

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Compensation for on-call Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.

To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully exec uted Task Order shall become part of this Agreement. The cumulative total compensation due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on-call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on-call Services are subject to all requirements and restrictions in this Agreement.

SECTION 2. TERM.

The term of this Agreement shall be from the effective date of this agreement through April 30, 2028 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.

SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT.

CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT.

SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Two Hundred Fifty Thousand Dollars ($250,000) per contract year for a total not-to-exceed compensation of Seven Hundred Fifty Thousand Dollars ($750,000). The hourly schedule of rates, if applicable, is set out in Exhibit C -1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.

SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including , if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s P roject Manager at the address specified in Section 1 3 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.

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SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it , its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this A greement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances.

SECTION 7. COMPLIANCE WITH LAWS . CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services.

SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services , arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions.

SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more , CONSULTANT shall make recommendations to CITY for aligning the P roject design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY.

SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the S ervices requested by CITY under this Agreement.

CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT wi ll be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT’s performance of the S ervices, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT ’s Docusign Envelope ID: 705C0BD3-CF46-4357-AB9C-7D113BB2D69F Item 8
Attachment A - Biggs
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Contract C25193532

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provision of the Services only, and not as to the means by which such a result is obtained.

SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, succes sors, executors, administrators and assignees of the parties.

SECTION 12. SUBCONTRACTING.

Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors.

Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcon tractors authorized by CITY to perform work on this Project are:

BKF Engineers – Civil Engineering
Schaaf & Wheeler – Hydrology & Hydraulics Analyses
Parikh – Geotechnical Investigations & Engineering
Callander – Landscape and Bridge Architecture
Bennett Engineering Services – Transportation & Electrical Engineering

CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors . CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors . CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee.

SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Anthony Notaro as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day-to -day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s P roject Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property.

CITY’s Project Manager is Megha Bansal , Public Works Department, Engineering Services Division, 250 Hamilton Avenue, Palo Alto, CA, 94301, Telephone: 650-329-2693. CITY’s Project Docusign Envelope ID: 705C0BD3-CF46-4357-AB9C-7D113BB2D69F Item 8
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Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time.

SECTION 1 4. OWNERSHIP OF MATERIALS . A ll work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its sub contractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services.

SECTION 15. AUDITS . CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement , including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later.

SECTION 16. INDEMNITY.

[Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all third party demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) to the extent that such Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. CITY will reimburse CONSULTANT for the proportionate percentage of defense costs exceeding CONSULTANT’s proportionate percentage of fault as determined by the final judgment of a court of competent jurisdiction.

[Option B applies to any consultant who does not qualify as a design professional as defined in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney ’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related Docusign Envelope ID: 705C0BD3-CF46-4357-AB9C-7D113BB2D69F Item 8
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to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party.

16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement.

16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement.

SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 2 9.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or parti al exercise of any right or remedy will preclude any other or further exercise of any right or remedy.

SECTION 18. INSURANCE.

18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies.

18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A -:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above.

18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is pri mary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days ’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT , CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement.

18.4. The procuring of such required policy or policies of insurance will not be Docusign Envelope ID: 705C0BD3-CF46-4357-AB9C-7D113BB2D69F Item 8
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Palo Alto City CouncilMay 12, 2025

Palo Alto City Council
May 12, 2025