Agenda packet — Palo Alto City Council, September 15, 2025 (part 2 of 3)

(h) Liability. Applicant is responsible for safely and legally complying with the requirements of this secƟon. Neither the issuance of a Permit under the requirements of the Director or building department, nor the compliance with the requirements of this secƟon or with any condiƟon imposed by the City, shall relieve any Person from responsibility for damage to Persons or property resulƟng therefrom, or as otherwise imposed by law, nor impose any liability upon the City for damages to Persons or property.

Part 9 Copper Controls

16.11.360 Copper Controls

(a) Pools, Spas, and Fountains. Discharges from pools, spas, and fountains that contain copper- based chemicals are prohibited from entering the Storm Drain System. Owners of pools, spas, and fountains shall either install a connecƟon to a private sanitary sewer, including a Item 8
Attachment C - Ordinance
Amending PAMC Chapter

16.11 (Stormwater Pollution
Prevention)

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connecƟon for ﬁlter backwash, or divert the Discharge for use in landscaping. Discharge diverted for use in landscaping shall not overﬂow the landscaped area.

(b) Sources. Each industrial source in the City shall have BMPs in place to minimize Discharge of copper to the Storm Drain System, including consideraƟon of roof runoﬀ that might accumulate copper deposits from venƟlaƟon systems on site.

(c) Rooﬁng Materials. Copper metal rooﬁng, copper granule containing asphalt shingles, and copper guƩers shall not be permiƩed for use on any residenƟal, commercial, or industrial Building for which a Building Permit is required. Copper ﬂashing for use under Ɵles or slates and small copper ornaments are exempt from this prohibiƟon. Replacement rooﬁng and guƩers on historic structures are exempt, provided that the rooﬁng material used shall be pre-paƟnated at the factory. For the purposes of this exempƟon, the deﬁniƟon of "historic" shall be limited to structures designated as Category 1 or Category 2 Buildings in the current ediƟon of the Palo Alto Historical and Architectural Resources Report and Inventory.

(d) Sites requiring copper controls shall comply with all applicable BMPs described in City regulaƟons and otherwise prescribed by the Director.

SECTION 3. If any SecƟon, SubsecƟon, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not aﬀect the validity of the remaining porƟon or SecƟons of the Ordinance. The Council hereby declares that it would have adopted the Ordinance and each SecƟon, SubsecƟon, sentence, clause or phrase thereof irrespecƟve of the fact that any one or more SecƟons, SubsecƟons, sentences, clauses or phrases be declared invalid.

SECTION 4. The Council ﬁnds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to SecƟon 15308 of the CEQA Guidelines, because it is an acƟon taken by the City as a regulatory agency to assure the maintenance, restoraƟon, enhancement, or protecƟon of the environment where the regulatory process involves procedures for protecƟon of the environment.
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Attachment C - Ordinance
Amending PAMC Chapter

16.11 (Stormwater Pollution
Prevention)

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SECTION 5. This ordinance shall be eﬀecƟve on the thirty-ﬁrst day aŌer the date of its adopƟon.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ City AƩorney or Designee City Manager

____________________________
Director of Public Works
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Attachment C - Ordinance
Amending PAMC Chapter

16.11 (Stormwater Pollution
Prevention)

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Resolution No. ________

A Resolution of the Council of the City of Palo Alto Adopting Regulations for Stormwater Pollution Prevention

R E C I T A L S

A. Chapter 16.11 of the Palo Alto Municipal Code, entitled Stormwater Pollution Prevention, imposes stormwater management requirements intended to protect the receiving waters and storm drain system and implement the requirements of the Municipal Regional Stormwater Permit (“MRP”) issued by the San Francisco Bay Regional Water Quality Control Board (“Regional Water Board”).

B. On September 15, 2025, an ordinance amending Chapter 16.11 was introduced. To implement that amended ordinance, City staff as directed by the City Engineer have prepared the Palo Alto Regulations for Stormwater Pollution Prevention, incorporated by reference in this Resolution.

C. Chapter 12.20 of the Palo Alto Municipal Code provides that the City Council may by resolution adopt rules and regulations governing utility services, including storm drainage.

NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows:

SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, the Palo Alto Regulations for Stormwater Pollution Prevention, incorporated herein, are approved and adopted. Except as otherwise specified in the Regulations, the Regulations shall become effective on the date that the ordinance amending Chapter 16.11 introduced September 15, 2025, goes into effect. Upon adoption, the Regulations will be published on the City’s website, paloalto.gov.

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Item 8
Attachment D - Resolution
Adopting Regulations for
Stormwater Pollution
Prevention

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SECTION 2. The Council finds that the adoption of this Resolution is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15308 of the CEQA Guidelines, because it is an action taken by the City as a regulatory agency to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

__________________________ _____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

__________________________ _____________________________ City Attorney or Designee City Manager

_____________________________
Director of Public Works
Item 8
Attachment D - Resolution
Adopting Regulations for
Stormwater Pollution
Prevention

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Ordinance No. ______
Ordinance of the Council of the City of Palo Alto Amending Title 16 of the Palo Alto Municipal Code to Add a New Chapter 16.13, Requirements for Food FaciliƟes Related to Water PolluƟon PrevenƟon and Management of Fats, Oils, and Grease

The Council of the City of Palo Alto ORDAINS as follows:

SECTION 1. Findings and DeclaraƟons. The City Council ﬁnds and declares as follows:

A. Urban Stormwater Runoﬀ is considered a signiﬁcant pathway for Pollutants into local creeks and the San Francisco Bay. Rain, irrigaƟon, and other water ﬂows wash Pollutants oﬀ impervious surfaces like streets, sidewalks, roofs, driveways, and parking lots into Storm Drain Systems and creeks and, ulƟmately, to the San Francisco Bay. Water that ﬂows to the Bay from the Storm Drain System and creeks does not receive any treatment and is oŌen contaminated by Pollutants that can be toxic to ﬁsh, wildlife, and people.

B. Fats, Oils and Grease generated by Food FaciliƟes can easily clog Sanitary Sewer System pipes when ﬂushed down the drain without pretreatment. Clogged pipes can result in Sanitary Sewer System backups and overﬂows, pollute local creeks and the Bay, and cause signiﬁcant infrastructure damage creaƟng a ﬁnancial strain on businesses, residents, and the City.

C. The City is required to comply with the State Water Resources Control Board Order No.

WQ 2022-0103-DWQ Statewide Waste Discharge Requirements General Order for Sanitary Sewer Systems, which requires protecƟon of the Sanitary Sewer System and eliminaƟon of preventable Sanitary Sewer Overﬂows.

D. ProtecƟon of the Storm Drain System, Sanitary Sewer System, and local Receiving Waters requires strict regulaƟons to prevent discharges and damage to infrastructure. Water quality requirements in the Municipal Regional Stormwater Permit issued by the San Francisco Bay Regional Water Quality Control Board, the U.S. Environmental ProtecƟon Agency "General Pretreatment RegulaƟons for ExisƟng and New Sources of PolluƟon" published at Title 40 of the Code of Federal RegulaƟons, Part 403, and the Federal Water PolluƟon Control Act, 33 U.S.C. secƟon 1251 shall be followed.

E. In order to beƩer protect public health, local Receiving Waters, and the City’s Storm Drain and Sanitary Sewer Systems, the City now intends to update its Municipal Code to include all applicable Food Facility requirements within the same Chapter 16.13, as opposed to dividing Stormwater and pretreatment requirements between mulƟple chapters.

Item 8
Attachment E - Ordinance
Adopting New PAMC
Chapter 16.13
(Requirements for Food
Facilities Related to Water
Pollution Prevention and
Management of Fats, Oils,
and Grease)

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F. Food FaciliƟes shall also adhere to requirements in Chapter 16.11, a component of the City’s Stormwater Compliance Program, which supports the City’s authority to implement Stormwater PolluƟon prevenƟon requirements mandated by the Regional Water Quality Control Board.

SECTION 2. Title 16 of the Palo Alto Municipal Code is amended to establish Chapter 16.13 to read as follows:

Item 8
Attachment E - Ordinance
Adopting New PAMC
Chapter 16.13
(Requirements for Food
Facilities Related to Water
Pollution Prevention and
Management of Fats, Oils,
and Grease)

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Table of Contents
Part 1 Purpose and Intent; DeﬁniƟons _____________________________________________ 5

16.13.010 Purpose and Intent ________________________________________________________ 5

16.13.020 DeﬁniƟons _______________________________________________________________ 5 Part 2 General Provisions ______________________________________________________ 10

16.13.030 AdministraƟon ___________________________________________________________ 10

16.13.040 Applicability _____________________________________________________________ 11

16.13.050 Conﬂicts with Other Laws __________________________________________________ 11

16.13.060 Alternate Means and Methods ______________________________________________ 11

16.13.070 RetenƟon of Records ______________________________________________________ 11

16.13.080 ObstrucƟon, Damage, or Impairment to Storm Drain and Sanitary Sewer Systems and Rights-of-way ____________________________________________________________________ 11 Part 3 Authority to Inspect and Enforce ___________________________________________ 12

16.13.090 Authority to Inspect _______________________________________________________ 12

16.13.100 Authority to Require CorrecƟve AcƟons _______________________________________ 12

16.13.110 Fees and Charges _________________________________________________________ 13 Part 4 Prohibited Discharges, Devices, and ConnecƟons ______________________________ 13

16.13.120 Prohibited Discharges _____________________________________________________ 13

16.13.130 Prohibited Devices, Equipment, and ConnecƟons _______________________________ 14 Part 5 Grease Control Device Requirements ________________________________________ 14

16.13.140 Requirements for Installing or Replacing ExisƟng Grease Control Devices _____________ 14

16.13.150 Grease Control Device Maintenance Requirements ______________________________ 14 Part 6 RooŌop Grease Containment System Requirements ____________________________ 14

16.13.160 Requirements for Installing or Replacing ExisƟng RooŌop Grease Containment Systems _ 14 Part 7 Waste Oil Management Requirements ______________________________________ 14

16.13.170 Waste Oil Storage Requirements for Food FaciliƟes ______________________________ 14

16.13.180 Waste Oil Management and Maintenance Requirements for Food FaciliƟes ___________ 15 Part 8 Spill Response Requirements ______________________________________________ 15

16.13.190 Requirements for Fats, Oils, and Grease Spill Response AcƟviƟes Conducted at and Associated with Food FaciliƟes _______________________________________________________ 15 Part 9 Best Management PracƟces for ExisƟng FaciliƟes ______________________________ 15

16.13.200 Required Best Management PracƟces for ExisƟng FaciliƟes ________________________ 15 Part 10 Mobile Food FaciliƟes ___________________________________________________ 15 Item 8
Attachment E - Ordinance
Adopting New PAMC
Chapter 16.13
(Requirements for Food
Facilities Related to Water
Pollution Prevention and
Management of Fats, Oils,
and Grease)

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16.14.210 Mobile Food FaciliƟes _____________________________________________________ 15 Part 11 Food Facility Closure or Ownership Change __________________________________ 15

16.14.220 Food Facility Closure or Change of Ownership __________________________________ 15

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Attachment E - Ordinance
Adopting New PAMC
Chapter 16.13
(Requirements for Food
Facilities Related to Water
Pollution Prevention and
Management of Fats, Oils,
and Grease)

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Part 1 Purpose and Intent; DeﬁniƟons

16.13.010 Purpose and Intent

The purpose of this Chapter is to control and limit impacts from Fats, Oils, and Grease (FOG) generated by Food FaciliƟes to the City of Palo Alto (City) Storm Drain System, Sanitary Sewer System, right-of-way, and Receiving Waters, including the San Francisco Bay (Bay) and local creeks, marshes, wetlands and other natural habitats, as well as to protect human health and the environment. This Chapter is enacted and shall be implemented in a manner consistent with the U.S. Environmental ProtecƟon Agency "General Pretreatment RegulaƟons for ExisƟng and New Sources of PolluƟon" published at Title 40 of the Code of Federal RegulaƟons, Part 403, the Porter-Cologne Water Quality Control Act (Water Code SecƟon 13000 et seq.), and the Federal Clean Water Act (33 U.S.C. SecƟon 1251 et seq.) (CWA), as amended from Ɵme to Ɵme. This Chapter is designed to be no less stringent than regional, state or federal regulaƟons, rules, orders, and policies but in some respects is more stringent. The City intends to update and modify this Chapter as needed to conƟnue to meet state and regional requirements and provide a program for protecƟon of the San Francisco Bay and other Receiving Waters. If any provision of this Chapter conﬂicts with state or regional requirements, as amended or updated, the more stringent and environmentally protecƟve provision shall apply.

This Chapter supplements the provisions of Chapters 16.09 and 16.11 of the Palo Alto Municipal Code, which apply to uses and acƟviƟes in the City more broadly, as well as Food FaciliƟes. This Chapter is intended to complement, rather than supersede, the provisions of City building codes and regulaƟons applicable to the installaƟon and operaƟon of grease capturing equipment.

16.13.020 DeﬁniƟons

The following terms, whenever used in this Chapter, are capitalized and shall be as deﬁned herein. For purposes of this Chapter, terms deﬁned in Chapter 16.11 shall have the same meaning in this Chapter, 16.13, except to the extent expressly modiﬁed in this SecƟon. (a) “A” deﬁniƟons: Reserved
(b) “B” deﬁniƟons:
(1) “Best Management PracƟces” or “BMPs” means a combinaƟon of general good housekeeping pracƟces, PolluƟon prevenƟon and educaƟonal pracƟces, operaƟons and maintenance procedures, and other pracƟces to prevent or reduce to the Maximum Extent PracƟcable Non-Stormwater Discharges directly or indirectly to the Storm Drain System, Sanitary Sewer System, right-of-way, or Receiving Waters. (2) “Building” means any structure used or intended for supporƟng or sheltering any use or occupancy.

Item 8
Attachment E - Ordinance
Adopting New PAMC
Chapter 16.13
(Requirements for Food
Facilities Related to Water
Pollution Prevention and
Management of Fats, Oils,
and Grease)

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(c) “C” deﬁniƟons:
(1) “City” or “The City” means City of Palo Alto, California. (2) “Community Food Producer” means a producer of agricultural products on land that is not zoned for agricultural use but is otherwise in compliance with applicable local land use and zoning restricƟons, including but not limited to restricƟons governing personal gardens, community gardens, school gardens, and culinary gardens. (d) “D” deﬁniƟons:
(1) “Director” means the Director of Public Works of the City of Palo Alto and their duly authorized designees.
(2) “Discharge” means the introducƟon of a Pollutant to the Storm Drain System, Sanitary Sewer System, or a Receiving Water from any acƟvity or operaƟon associated with a Food Facility or Mobile Food Facility. (3) “Discharger” means any Person who causes or permits a Discharge. (e) “E” deﬁniƟons:
(1) “Enforcement Response Plan” or “ERP” means a reference document for inspecƟon staﬀ and management to ensure a consistent and transparent enforcement process for meeƟng City, regional, and state requirements.
(f) “F” deﬁniƟons:
(1) “Fats, Oils, and Grease” or “FOG” means any substance, such as a vegetable or animal product, that is used in, or is a byproduct of, the cooking or food preparaƟon process, and that turns or may turn viscous or solidiﬁes with a change in temperature or other condiƟons. FOG does not include any products associated with petroleum.
(2) “Food Facility” means a permanent establishment or mobile business operaƟng for the purpose of preparing, packaging, serving, or providing food (including only pre- packaged) and/or drinks for consumpƟon by that establishment’s members, customers, employees, or the general public. “Food Facility” does not include the following:
(i) LocaƟons where food is stored temporarily but not prepared or served; (ii) Private home kitchens, also known as coƩage food operaƟons, as deﬁned by the California Department of Public Health;
(iii) Community Food Producers;
(iv) Farmers’ markets and produce stands, except where food is prepared and served at the market;
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Attachment E - Ordinance
Adopting New PAMC
Chapter 16.13
(Requirements for Food
Facilities Related to Water
Pollution Prevention and
Management of Fats, Oils,
and Grease)

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(v) Kitchen faciliƟes principally for individual use by employees ancillary to another primary use (i.e., oﬃce break rooms); and
(vi) Public events at temporary locaƟons without connecƟons to the Sanitary Sewer System and Storm Drain System.
(3) “Food Facility Development Project” means new construcƟon or replacement of a structure built to serve solely as a Food Facility or a structure that includes a Food Facility and requires a Planning EnƟtlement or Building Permit from the City. (4) “Food Waste Disposer” means a device installed under a sink drain used to shred and/or grind food waste into smaller parƟcles in order for it to drain to the Sanitary Sewer System.
(g) “G” deﬁniƟons:
(1) “Grease Control Device” means a device designed to collect and prevent passage of food waste and FOG into the Sanitary Sewer System. Grease Control Devices addressed in this Chapter include gravity grease interceptors, grease removal device(s), and hydromechanical grease interceptors.
(h) “H” deﬁniƟons: Reserved
(i) “I” deﬁniƟons: Reserved
(j) “J” deﬁniƟons: Reserved
(k) “K” deﬁniƟons: Reserved
(l) “L” deﬁniƟons:
(1) “Lateral” means the drainage piping and appurtenances that consƟtute a Building’s connecƟon to the Sanitary Sewer System.
(m) “M” deﬁniƟons:
(1) “Maximum Extent PracƟcable” or “MEP” means uƟlizing all reasonably feasible means, including implementaƟon of BMPs, control techniques, and system, design and engineering methods.
(2) “Mobile Food Facility” means any vehicle used in conjuncƟon with a commissary or other permanent Food Facility upon which food is sold or distributed at retail. This does not include a “transporter” used to transport packaged food from a Food Facility, or other approved source to the consumer.
(3) “Municipal Regional Permit” or “MRP” means the most recently adopted San Francisco Bay Area Municipal Regional Stormwater Permit, a mulƟ-countywide municipal Stormwater NPDES Permit issued by the California Regional Water Quality Control Board, San Francisco Bay Region-Region 2 (Regional Water Board), to Item 8
Attachment E - Ordinance
Adopting New PAMC
Chapter 16.13
(Requirements for Food
Facilities Related to Water
Pollution Prevention and
Management of Fats, Oils,
and Grease)

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regulate Discharges from municipaliƟes and local agencies in Alameda, Contra Costa, San Mateo, and Santa Clara counƟes, and the ciƟes of Fairﬁeld, Suisun City, and Vallejo to the San Francisco Bay.
(n) “N” deﬁniƟons:
(1) “Non-Stormwater Discharge” means any Discharge that is not enƟrely composed of Stormwater. Non-Stormwater Discharges include but are not limited to polluted groundwater, any Pollutant, Discharges allowed under an NPDES Permit, or an Illicit Discharge.
(2) “NPDES” means NaƟonal Pollutant Discharge EliminaƟon System, which is a naƟonal program for issuing, modifying, revoking and reissuing, terminaƟng, monitoring and enforcing permits, and imposing and enforcing pretreatment requirements, under SecƟons 307, 402, 318, and 405 of the Federal Clean Water Act. (o) “O” deﬁniƟons: Reserved
(p) “P” deﬁniƟons:
(1) “Person” means any individual, partnership, ﬁrm, company, corporaƟon, associaƟon, joint venture, joint stock company, trust, estate, governmental enƟty, or any other legal enƟty; or their representaƟves, agents, or designees. (2) “Pervious” refers to a material or surface (such as landscaping or natural landscape) that allows water to inﬁltrate below the surface. Pervious materials may include, but are not limited to, permeable interlocking concrete pavers, permeable pavers, Pervious concrete and porous asphalt.
(3) “Planning EnƟtlement” means approval provided by the City to develop a Building (or Buildings) or a piece of land for a speciﬁc use according to the City’s development standards, rules, and regulaƟons.

(4) "Pollutants” or “Pollutant” means those substances that may cause or contribute to the degradaƟon of water quality of Receiving Waters and are harmful to aquaƟc life, human health and the environment. Pollutants associated with Food FaciliƟes include cleaning agents, food waste, trash, and Fats, Oils, and Grease. (5) "PolluƟon" means the presence, introducƟon or Discharge into a Receiving Water of a Pollutant that has harmful or poisonous eﬀects on aquaƟc life, ecological habitat, natural processes of creeks and waterbodies, public health and the environment. (q) “Q” deﬁniƟons: Reserved

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Attachment E - Ordinance
Adopting New PAMC
Chapter 16.13
(Requirements for Food
Facilities Related to Water
Pollution Prevention and
Management of Fats, Oils,
and Grease)

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(r) “R” deﬁniƟons:
(1) “Receiving Water” means waters of the State, as deﬁned by the Porter-Cologne Water Quality Control Act. Receiving Waters include but are not limited to creeks, marshes, wetlands, shorelines, estuaries, and bays.
(2) "Refuse" means and includes compostable materials, recyclable materials, and solid waste. Solid waste means solid and semisolid wastes, generated in or upon, related to the occupancy of, remaining in or emanaƟng from residenƟal premises or commercial premises including but not limited to garbage, trash, rubbish, ashes, and industrial wastes.
(3) “Refuse Management Area” means an area located outdoors used to store Refuse bins and/or dumpsters, inside or outside of an enclosure. (4) “Responsible Party” means any Person who owns, operates, or manages a property, business, facility, or site, or who is otherwise responsible for the acƟviƟes thereon or the Person whose acƟon or omission causes or results in a violaƟon of this Chapter. (5) “RooŌop Grease Containment Systems” means the ﬁlters applied to rooŌop terminaƟons at Food FaciliƟes. They are applied to rooŌop fans on exhaust systems to capture the aerosol form of FOG from food being cooked in the kitchen. (s) “S” deﬁniƟons:
(1) “San Francisco Bay Regional Water Quality Control Board” or “Regional Water Board” means the regional agency whose mission is to preserve, enhance, and restore the quality of the San Francisco Bay’s water resources for the protecƟon of the environment, public health, and all beneﬁcial uses. This agency oversees compliance of the MRP .
(2) “Sanitary Sewer Overﬂow” means any overﬂow, spill, release, Discharge, or diversion of untreated or parƟally treated wastewater from a Sanitary Sewer System. (3) “Sanitary Sewer System” means the collecƟon system, all sewers, treatment plants and other faciliƟes owned or operated by the City for carrying, collecƟng, storing, treaƟng, reclaiming, and disposing of sanitary sewage and industrial wastes (as deﬁned in SecƟon 16.09.015 of Title 16 of the Palo Alto Municipal Code). (4) “Storm Drain System” means the storm drain faciliƟes owned, managed, or operated by the City by which Stormwater is collected and/or conveyed to Receiving Waters, including but not limited to streets and roads, guƩers, curbs, inlets, piped storm drains, parking lots, pumping faciliƟes, retenƟon and detenƟon basins, natural and human-made or altered drainage channels, reservoirs, and other drainage structures which are within the City’s jurisdicƟon. The Storm Drain System also includes pipes, underground and surface conveyances, and other components on private property Item 8
Attachment E - Ordinance
Adopting New PAMC
Chapter 16.13
(Requirements for Food
Facilities Related to Water
Pollution Prevention and
Management of Fats, Oils,
and Grease)

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and other property within the City’s limits not owned by the City that connect and/or route Stormwater and Stormwater Runoﬀ to the City’s Storm Drain System. (5) “Stormwater” means any surface ﬂow, runoﬀ, and drainage consisƟng enƟrely of water that originates from precipitaƟon events.
(6) “Stormwater Runoﬀ” means ﬂow that is created when precipitaƟon falls on Impervious Surfaces or compacted Pervious surfaces that do not allow water to inﬁltrate into the ground.
(7) “Structural Retroﬁt Best Management PracƟces” or “Structural Retroﬁt BMPs” means a retroﬁt to a structure, ﬁxed feature, or property to prevent or minimize the potenƟal of a Discharge to the Storm Drain System, Sanitary Sewer System, or Receiving Waters.
(t) “T” deﬁniƟons: Reserved
(u) “U” deﬁniƟons:
(1) “United States Environmental ProtecƟon Agency” or “U.S. EPA” or “EPA” means the Environmental ProtecƟon Agency of the United States of America, a federal agency, whose mission is to protect human health and the environment and the oversees compliance with environmental regulaƟons.
(v) “V” deﬁniƟons: Reserved
(w) “W” deﬁniƟons:
(1) “Waste Oil” means FOG generated by cooking or Food Facility equipment that is not plumbed to the Sanitary Sewer System but is collected, stored, and hauled oﬀ-site.

Waste Oil is also known as cooking oil, yellow oil, or tallow. (2) “Waste Oil Container” means any container used to store Waste Oil. (x) “X” deﬁniƟons: Reserved
(y) “Y” deﬁniƟons: Reserved
(z) “Z” deﬁniƟons: Reserved

Part 2 General Provisions

16.13.030 AdministraƟon

The Director shall be responsible for the administraƟon and enforcement of the provisions of this Chapter and for promulgaƟng such orders, rules, condiƟons of approval, and requirements as are necessary to accomplish the purposes of this Chapter. The primary regulatory document

Item 8
Attachment E - Ordinance
Adopting New PAMC
Chapter 16.13
(Requirements for Food
Facilities Related to Water
Pollution Prevention and
Management of Fats, Oils,
and Grease)

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implemenƟng this Chapter is Palo Alto RegulaƟons for Food FaciliƟes Related to Water PolluƟon PrevenƟon and Management of Fats, Oils, and Grease.

16.13.040 Applicability

This Chapter shall apply to all Food FaciliƟes and Mobile Food FaciliƟes as deﬁned in this Chapter. Nothing in this Chapter shall be interpreted to infringe on any vested property right.

16.13.050 Conﬂicts with Other Laws

In the event of any conﬂict between this Chapter and any federal or state law, regulaƟon, order, or permit, the requirement that establishes the higher standard for public health or safety shall govern. Nothing in this Chapter shall preclude enforcement of any other applicable law, regulaƟon, order, or permit.

16.13.060 Alternate Means and Methods

If compliance with any secƟon of these regulaƟons is infeasible, the Director, upon applicaƟon in wriƟng by the owner, a lessee, or an authorized representaƟve of the Food Facility, is authorized to approve alternate means or methods of compliance with this Chapter. The Food Facility shall demonstrate, as required by the Director, that the proposed alternaƟve is at least equivalent in quality, strength, eﬀecƟveness, ﬁre resistance, durability, and safety. The parƟculars of any such approval made by the Director shall be in wriƟng and a signed copy shall be furnished to the applicant.

16.13.070 RetenƟon of Records

Food FaciliƟes shall comply with the records retenƟon requirements in the Palo Alto RegulaƟons for Food FaciliƟes.

16.13.080 ObstrucƟon, Damage, or Impairment to Storm Drain and Sanitary Sewer Systems and Rights-of-way

Dischargers shall be responsible for and liable to the City for any obstrucƟon, damage, or impairment to the Storm Drain System, Sanitary Sewer System, and other rights-of-way associated with a Discharge that causes an obstrucƟon, damage, or any other impairment to the Storm Drain System and Sanitary Sewer System. The City may assess a charge against the Discharger to reimburse the City for costs incurred to clean or repair said obstrucƟon, damage or impairment.

Item 8
Attachment E - Ordinance
Adopting New PAMC
Chapter 16.13
(Requirements for Food
Facilities Related to Water
Pollution Prevention and
Management of Fats, Oils,
and Grease)

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Part 3 Authority to Inspect and Enforce

16.13.090 Authority to Inspect

(a) The Director shall have the authority to inspect inside and outside of private and public Food FaciliƟes, sites, property, structures, equipment, and drainage systems associated with Food FaciliƟes, whether exisƟng or under construcƟon, whenever necessary to ensure and conﬁrm compliance with this Chapter and applicable state, regional, and City regulaƟons.

(b) The Director shall be authorized to enter, without unreasonable delay, any premises subject to the requirements of this Chapter to conduct inspecƟons and monitoring to assure compliance with this Chapter and applicable state, regional, and City regulaƟons.

An inspecƟon fee shall be charged for each inspecƟon at the amount listed in the City’s Adopted Municipal Fee Schedule.

(c) In the event the owner or occupant of the premises refuses entry aŌer a request to enter and inspect the premises has been made, the City is hereby empowered to seek assistance from any court of competent jurisdicƟon in obtaining such entry.

16.13.100 Authority to Require CorrecƟve AcƟons

(a) Enforcement. The Director shall have primary responsibility for enforcement of this Chapter. The Director is authorized to take all acƟons reasonable and necessary to enforce this Chapter and any regulaƟons developed as required hereunder. ViolaƟons of this Chapter may be enforced as allowed by Title I of the Palo Alto Municipal Code. The Director is authorized to exercise the authority provided in the California Penal Code secƟon 836.5.

(b) The Director may require any Food Facility or Person deemed to have violated this Chapter to take any or all of the following acƟons:

(1) Ensure that the PolluƟon be remediated and the aﬀected private and City property and infrastructure, as relevant, be restored within a speciﬁed Ɵme. The Responsible Party shall also be responsible for cleanup or reimbursement of cleanup costs incurred by the City for cleanup acƟviƟes associated with any Discharges that have entered the City’s right-of-way, Storm Drain and/or Sanitary Sewer Systems. (2) Implement applicable BMPs to protect the Storm Drain System, Sanitary Sewer System, and Receiving Waters to address Pollutant sources, including but not limited to, outdoor Waste Oil storage and disposal areas; outdoor Refuse Management Areas; outdoor parking areas and access roads; outdoor areas used by customers and employees; outdoor wash areas; outdoor drainage from indoor areas; rooŌop equipment; Grease Control Devices and associated plumbing connecƟons; private Item 8
Attachment E - Ordinance
Adopting New PAMC
Chapter 16.13
(Requirements for Food
Facilities Related to Water
Pollution Prevention and
Management of Fats, Oils,
and Grease)

Item 8: Staff Report
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Laterals; and other sources that have a reasonable potenƟal to contribute to PolluƟon.
(3) Install Structural Retroﬁt BMPs to address noncompliance of this Chapter. These projects shall be approved by the Director and may be require a Planning EnƟtlement or Building Permit approval from the City.

(c) The Director shall implement a Stormwater Enforcement Response Plan to facilitate Ɵmely and eﬀecƟve compliance with the requirements of this Chapter. The Enforcement Response Plan shall contain, at a minimum, the following:
(1) Enforcement procedures;
(2) Enforcement tools and scenarios;
(3) Procedures for Ɵmely correcƟon of potenƟal and actual Discharges; and (4) Procedures for referral and coordinaƟon with other agencies.

(d) The remedies established in this SecƟon are not exclusive. In addiƟon to any other remedies allowed under the Palo Alto Municipal Code, violaƟons may be subject to penalƟes established by resoluƟon of the Council or any other enforcement mechanism allowed by law.

16.13.110 Fees and Charges

The City may adopt reasonable fees and charges for reimbursement of costs of administering and enforcing this Chapter.

Part 4 Prohibited Discharges, Devices, and ConnecƟons

16.13.120 Prohibited Discharges

No Person shall cause, allow, or permit any Threatened or Actual Discharge or allow any of the following to ﬂow or spill to any Pervious area, street, or City right-of-way. Prohibited Discharges include, but are not limited to, the following:

(a) Fats, Oils, and Grease (FOG), including any liquid or other wastes containing FOG; (b) Grease Control Device contents;
(c) Waste Oil Container contents;
(d) Drippings or spills from Outdoor Refuse Management Areas; (e) Refuse, liquids, and other waste from indoor and outdoor storage and wash areas and public or employee areas associated with a Food Facility; and (f) FOG accumulaƟons on rooŌops of Food FaciliƟes from rooŌop terminaƟons.

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Attachment E - Ordinance
Adopting New PAMC
Chapter 16.13
(Requirements for Food
Facilities Related to Water
Pollution Prevention and
Management of Fats, Oils,
and Grease)

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16.13.130 Prohibited Devices, Equipment, and ConnecƟons

(a) Plumbing lines and drainage ﬁxtures located in bathrooms shall not be connected to a Grease Control Device.
(b) No dishwashers shall be connected to a Grease Control Device. (c) No Food Facility shall install, maintain, or use a Food Waste Disposer (as required in

16.08.110 of Title 16 of the Palo Alto Municipal Code). (d) Unless otherwise approved by the Director, no Food Facility shall install, maintain, or use any food waste liqueﬁers, aerobic or anaerobic food waste digesters, food composters, or similar devices designed or intended to digest biodegradable kitchen waste to be drained to the Sanitary Sewer System.
(e) A Food Facility shall not connect any ﬁxture or outdoor drainage to the City’s Storm Drain System except with permission from the Director.

Part 5 Grease Control Device Requirements

16.13.140 Requirements for Installing or Replacing ExisƟng Grease Control Devices

Food FaciliƟes shall install and operate a Grease Control Device and with required connected ﬁxtures in compliance with the Palo Alto RegulaƟons for Food FaciliƟes.

16.13.150 Grease Control Device Maintenance Requirements

Grease Control Devices shall be maintained in accordance with the Palo Alto RegulaƟons for Food FaciliƟes.

Part 6 RooŌop Grease Containment System Requirements

16.13.160 Requirements for Installing or Replacing ExisƟng RooŌop Grease Containment Systems

Food FaciliƟes shall install and maintain RooŌop Containment systems in accordance with the Palo Alto RegulaƟons for Food FaciliƟes.

Part 7 Waste Oil Management Requirements

16.13.170 Waste Oil Storage Requirements for Food FaciliƟes

Food FaciliƟes shall comply with the waste oil storage requirements in the Palo Alto RegulaƟons for Food FaciliƟes.

Item 8
Attachment E - Ordinance
Adopting New PAMC
Chapter 16.13
(Requirements for Food
Facilities Related to Water
Pollution Prevention and
Management of Fats, Oils,
and Grease)

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16.13.180 Waste Oil Management and Maintenance Requirements for Food FaciliƟes

All Food FaciliƟes that use and store Waste Oil Containers shall comply with the requirements in the Palo Alto RegulaƟons for Food FaciliƟes.

Part 8 Spill Response Requirements

16.13.190 Requirements for Fats, Oils, and Grease Spill Response AcƟviƟes Conducted at and Associated with Food FaciliƟes

Fats, Oils, and Grease spill response acƟviƟes conducted at and associated with Food FaciliƟes shall comply with the Palo Alto RegulaƟons for Food FaciliƟes.

Part 9 Best Management PracƟces for ExisƟng FaciliƟes

16.13.200 Required Best Management PracƟces for ExisƟng FaciliƟes

In addiƟon to the Best Management PracƟces required by Chapter 16.11 of the Palo Alto Municipal Code, Food FaciliƟes shall implement BMPs in accordance with the Palo Alto RegulaƟons for Food FaciliƟes.

Part 10 Mobile Food FaciliƟes

16.14.210 Mobile Food FaciliƟes

Mobile Food FaciliƟes shall comply with requirements of the Santa Clara County Department of Environmental Health and applicable secƟons of the Palo Alto RegulaƟons for Food FaciliƟes.

Part 11 Food Facility Closure or Ownership Change

16.14.220 Food Facility Closure or Change of Ownership

(a) Food FaciliƟes shall be responsible for a ﬁnal cleanout and shuƫng down of operaƟons of their Grease Control Device(s) upon closure of their business and shall adhere to the Palo Alto RegulaƟons for Food FaciliƟes.

(b) GCDs shall be cleaned in accordance with the Palo Alto RegulaƟons for Food FaciliƟes at the Ɵme of Food Facility business closure, closure of the Building in which the Food Facility is located, or a change in ownership of the Food Facility. (c) A GCD that has been abandoned in place or has been otherwise disconƟnued from further use shall have the contents removed therefrom, and the boƩom perforated and be completely ﬁlled with crushed rock, sand, controlled low strength material, concrete, or other material as approved by the Director. Subsequent Food FaciliƟes shall be made Item 8
Attachment E - Ordinance
Adopting New PAMC
Chapter 16.13
(Requirements for Food
Facilities Related to Water
Pollution Prevention and
Management of Fats, Oils,
and Grease)

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aware of the abandoned GCD and install a separate GCD that meets current requirements.
(d) Building owners that occupy a space or Building with a Grease Control Device that is deemed out of compliance or was not adequately shut down when the previous Food Facility closed shall take responsibility for that device. Owners shall adhere to the Palo Alto RegulaƟons for Food FaciliƟes.

SECTION 3. If any secƟon, subsecƟon, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not aﬀect the validity of the remaining porƟon or secƟons of the Ordinance. The Council hereby declares that it would have adopted the Ordinance and each secƟon, subsecƟon, sentence, clause or phrase thereof irrespecƟve of the fact that any one or more secƟons, subsecƟons, sentences, clauses or phrases be declared invalid.

Item 8
Attachment E - Ordinance
Adopting New PAMC
Chapter 16.13
(Requirements for Food
Facilities Related to Water
Pollution Prevention and
Management of Fats, Oils,
and Grease)

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SECTION 5. This Ordinance shall be eﬀecƟve on the thirty-ﬁrst day aŌer the date of its adopƟon.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ City AƩorney or Designee City Manager

____________________________
Director of Public Works

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Attachment E - Ordinance
Adopting New PAMC
Chapter 16.13
(Requirements for Food
Facilities Related to Water
Pollution Prevention and
Management of Fats, Oils,
and Grease)

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Resolution No. ________

A Resolution of The City of Palo Alto Adopting Regulations for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease

R E C I T A L S

A. Requirements for food facilities related to water pollution prevention and management of fats, oils, and grease (FOG) were previously included in Chapter 16.11 of the Palo Alto Municipal Code (PAMC), entitled Stormwater Pollution Prevention, and Chapter 16.09, entitled Sewer Use Ordinance.

B. On September 15, 2025, in order to better protect public health, local receiving waters, and the City’s storm drain and sanitary sewer systems, the City introduced an ordinance that would add a new chapter to the PAMC, Chapter 16.13, and consolidate requirements for food facilities related to management of stormwater and FOG within that Chapter. To implement that ordinance, City staff as directed by the Director of Public Works have prepared the Palo Alto Regulations for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease, incorporated by reference in this Resolution.

C. Chapter 12.20 of the Palo Alto Municipal Code provides that the City Council may by resolution adopt rules and regulations governing utility services, including wastewater and storm drainage utility services.

NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows:

SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, the Palo Alto Regulations for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease, incorporated herein, are approved and adopted. Except as otherwise specified in the Regulations, the Regulations shall become effective on the date that the ordinance introduced September 15, 2025, adding Chapter 16.13 to the PAMC goes into effect.

Upon adoption, the Regulations will be published on the City’s website, paloalto.gov.

//
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Attachment F - Resolution
Adopting Regulations for
Food Facilities Related to
Water Pollution Prevention
and Management of Fats,
Oils, and Grease

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INTRODUCED AND PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

__________________________ _____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

__________________________ _____________________________ City Attorney or Designee City Manager

_____________________________
Director of Public Works
Item 8
Attachment F - Resolution
Adopting Regulations for
Food Facilities Related to
Water Pollution Prevention
and Management of Fats,
Oils, and Grease

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Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Amending Title 16 of the Palo Alto Municipal Code to Add a New Chapter 16.66 (Hauled Liquid Waste) to Regulate the Discharge of Hauled Liquid Waste at the Palo Alto Regional Water Quality Control Plant (RWQCP)

The Council of the City of Palo Alto ORDAINS as follows:

SECTION 1. Findings and Declarations. The City Council finds and declares as follows:

A. The Palo Alto Regional Water Quality Control Plant (RWQCP) accepts certain hauled liquid wastes from transporters that operate within the areas served by the RWQCP.

B. Hauled liquid waste can cause adverse impacts to wastewater treatment plants because it is typically more concentrated than domestic wastewater and may not be equalized when discharged.

C. Adverse impacts may include pass through, interference, sludge contamination, and hazards to personnel at the RWQCP.

D. To prevent adverse impacts associated with hauled liquid wastes, the City of Palo Alto needs to adequately control the discharge of hauled liquid waste at the RWQCP.

E. This ordinance revises the hauled liquid waste program by adding new requirements and clarifying existing requirements for the discharge of hauled liquid waste to the RWQCP, including suggested requirements from the 2007 Environmental Protection Agency Model Pretreatment Ordinance.

SECTION 2. A new Chapter 16.66 (Hauled Liquid Waste) is hereby added to Title 16 of the Palo Alto Municipal Code to read as follows:

Chapter 16.66 Hauled Liquid Waste

SECTIONS:

16.66.010 Purpose

16.66.020 Definitions

16.66.030 Responsibility of the Director

16.66.040 Discharge of Hauled Liquid Waste

16.66.050 Hauled Liquid Waste Discharge Permit Required

16.66.060 Hauled Liquid Waste Discharge Permit Application Procedure

16.66.070 Approved Vehicles

16.66.080 Waste Monitoring

16.66.090 Reporting Requirements for Waste Haulers
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Attachment G - Ordinance
Adopting New PAMC
Chapter 16.66 (Hauled
Liquid Waste)

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16.66.100 Retention of Records

16.66.110 Insurance

16.66.120 Hauled Liquid Waste Discharge Permit Modification

16.66.130 Hauled Liquid Waste Discharge Permit Suspension or Revocation

16.66.140 Hauled Liquid Waste Discharge Permit Denial, Suspension, or Revocation Hearing

16.66.150 Personnel Orientation

16.66.160 Enforcement and Penalties

16.66.170 Charges and Fees

16.66.180 Closure of Receiving Station

16.66.010 Purpose

The purpose of this Chapter is to regulate the discharge of hauled liquid waste at the Palo Alto Regional Water Quality Control Plant (RWQCP).

16.66.020 Definitions

The following terms and phrases, whenever used in this Chapter, shall be as defined herein.

(a) “Chemical toilet waste” means human excrement and deodorizers collected from a portable chemical toilet.

(b) “Cesspool” means a lined or partially lined underground pit into which raw sanitary sewage is discharged.

(d) “Director” means the City’s director of public works, his or her designee, or such other person as may be designated by the city manager.

(e) “Hauled liquid waste” means sewage collected from a septic tank, seepage pit, cesspool, chemical toilet, or other similar device.

(f) “Hauled liquid waste discharge permit” means a permit issued by the director, used as a control mechanism, which grants revocable permission and authorization to discharge hauled liquid waste to the receiving station.

(g) “Hazardous material” means any material so designated by Title 17 of this code.

(h) “Hazardous waste” means a material designated as a hazardous waste by Federal, State, or local regulations.

(i) “Industrial waste” means any waste so designated by Chapter 16.09 of this code.

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Attachment G - Ordinance
Adopting New PAMC
Chapter 16.66 (Hauled
Liquid Waste)

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(j) “NPDES permit” means National Pollutant Discharge Elimination System Permit and controls water pollution by regulating point sources that discharge pollutants into waters of the United States.

(k) “Person” means any individual, partnership, copartnership, firm, company, corporation, association, joint stock company, trust, estate, governmental entity, or any other legal entity; or their legal representatives, agents, or assigns. This definition includes all Federal, State, and local government entities.

(l) “Publicly Owned Treatment Works” or “POTW” means a treatment works, as defined by Section 212 of the Clean Water Act (33 U.S.C. Section 1292), which is owned by the City.

This definition includes any devices or systems used in the collection, storage, treatment, recycling, and reclamation of sewage or industrial wastes of a liquid nature and any conveyances, which convey wastewater to a treatment plant.

(m) “Receiving station” means the location that has been identified by the director as the authorized discharge point for hauled liquid wastes.

(n) “RWQCP service area” means the cities of Los Altos, Mountain View, and Palo Alto; the town of Los Altos Hills; the East Palo Alto Sanitary District; and the unincorporated area of the County of Santa Clara where the Stanford University campus is located.

(o) “Seepage pit” means a device comprised of one or more pits extending into porous strata, lined with open-jointed masonry or similar walls, capped and provided with a means of access such as a manhole cover and into which wastewater disposal system effluent is discharged.

(p) “Sewage” means any material so designated by Chapter 16.09 of this code.

(q) “Waste hauler” means any person engaged in the collection and transport of waste.

16.66.030 Responsibility of the Director

Except as otherwise provided herein, the director shall administer, implement and enforce the provisions of this Chapter. The director shall be responsible for promulgating such orders, rules, regulations and requirements as are necessary to accomplish the purpose of this Chapter. Any powers granted to or duties imposed upon the director may be delegated by the director to a duly authorized City employee.

16.66.040 Discharge of Hauled Liquid Waste

(a) Hauled liquid waste may only be discharged at the receiving station.

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Adopting New PAMC
Chapter 16.66 (Hauled
Liquid Waste)

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(b) No waste hauler shall introduce or cause to be introduced into the receiving station the following pollutants, substances, or wastewater:

(1) Commercial or industrial process wastewater, industrial waste, hazardous materials, or hazardous waste;

(2) Stormwater, groundwater, or artesian well water, unless authorized by the director;

(3) Wastes from soil boring or construction operations;

(4) Sludge, biosolids, or any other solid materials from sewage or water treatment plants;

(5) Grease, oil, or waste collected from grease control devices as defined by Chapter 16.13 of this code;

(6) Any waste prohibited by Section 16.09.040 of this code; or

(7) Any waste collected from any property or location outside the RWQCP service area, unless authorized by the director.

16.66.050 Hauled Liquid Waste Discharge Permit Required

(a) No person shall deliver or discharge hauled liquid wastes at the receiving station without first obtaining a hauled liquid waste discharge permit from the director.

(b) Any violation of the terms and conditions of a hauled liquid waste discharge permit shall be deemed a violation of this Chapter and shall subject the permittee to the enforcement provisions set forth in this Chapter. Obtaining a hauled liquid waste discharge permit from the City does not relieve a permittee of its obligation to comply with all Federal, State, or county waste hauling requirements or with any other applicable provisions of Federal, State, and local law.

(c) No hauled liquid waste discharge permit is transferable without prior written consent of the director. A change of ownership (including a transfer of the majority of shares in a corporate discharger) requires submittal of a new hauled liquid waste discharge permit application and payment of any applicable fees.

(d) The director may impose terms and conditions or other provisions in hauled liquid waste discharge permits which the director deems reasonable or necessary to carry out the purpose of this Chapter.

(e) Issuance of a hauled liquid waste discharge permit establishes a conditional privilege to discharge. Issuance of a hauled liquid waste discharge permit does not create property rights, nor does it create a vested irrevocable right or privilege. The director has the right Item 8
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Adopting New PAMC
Chapter 16.66 (Hauled
Liquid Waste)

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to refuse any hauled liquid waste load.

16.66.060 Hauled Liquid Waste Discharge Permit Application Procedure

(a) An applicant for a hauled liquid waste discharge permit shall complete and submit a hauled liquid waste discharge permit application established by the director. The director may require information in addition to that required on the hauled liquid waste discharge permit application form as deemed reasonable or necessary to evaluate the hauled liquid discharge permit application.

(b) Completed hauled liquid waste discharge permit applications shall be filed by the discharger not less than ten (10) calendar days in advance of commencing or recommencing discharge. The discharger shall not commence or recommence discharge prior to obtaining a hauled liquid waste discharge permit without specific, interim approval from the director to discharge during the permitting process.

(c) The director may deny any application for a hauled liquid waste discharge permit for good cause, including, but not limited to, the following reasons:

(1) The application contains false or misleading information;

(2) The application is not accompanied by the required fee(s);

(3) The issuance of the hauled liquid waste discharge permit would result in the discharge of wastes of such quantity or strength that the public health, safety, or public or private property are endangered;

(4) The issuance of the hauled liquid waste discharge permit would cause the City to violate any NPDES permit conditions, or any Federal, State, or local laws or regulations;

(5) The applicant has not provided adequate information to establish that its discharge will comply with all requirements of this Chapter and with such other terms and conditions as the director may deem necessary to include in the applicant's hauled liquid waste discharge permit;

(6) The applicant has failed to pay or has outstanding fees, fines, or penalties owed to the City related to activities governed by this Chapter.

(d) If the director denies the issuance of a hauled liquid waste discharge permit, any application fees paid shall not be returned to the applicant unless the director has ascertained that a hauled liquid waste discharge permit is not required to discharge the waste for which the hauled liquid waste discharge permit application is made.

(e) Incomplete or inaccurate hauled liquid waste discharge permit applications will not be Item 8
Attachment G - Ordinance
Adopting New PAMC
Chapter 16.66 (Hauled
Liquid Waste)

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processed.

16.66.070 Approved Vehicles

Access to and use of the receiving station shall be granted only to vehicles possessing a valid permit issued by the Santa Clara County Department of Environmental Health in addition to a hauled liquid waste discharge permit approved by the director.

16.66.080 Waste Monitoring

(a) The director may conduct all inspection, surveillance, sampling, and monitoring necessary to assure compliance with applicable Federal, State, and local regulations including this Chapter.

(b) The City shall have the right by and through its officers, employees, or other persons engaged by the City to do so, to take such samples of hauled liquid waste delivered by any person to the receiving station as the City in its sole discretion may deem appropriate to obtain a representative sample of each delivery's contents. Such samples may be taken prior to, during, or after any such delivery or discharge. Without being limited thereto, results of analyses made of such samples at an accredited laboratory may be used to determine a permittee's compliance with the provisions of this Chapter.

(c) The director may require a waste hauler to provide representative sample and/or a representative waste analysis of any load prior to discharge.

16.66.090 Reporting Requirements for Waste Haulers

(a) The director may require holders of hauled liquid waste discharge permits to submit reports to demonstrate or document compliance with this Chapter.

(b) The director may require information on a waste hauler’s operations in addition to that required in the hauled liquid waste discharge permit application or other reports to evaluate waste hauler compliance with the provisions of this Chapter.

(c) The director may establish an electronic submittal program for submission of reports, documents and data and require use thereof by holders of hauled liquid waste discharge permits.

(d) Waste haulers that send electronic (digital) documents to the director to satisfy the requirements of this Section must meet all Federal, State, and local electronic signature requirements. Electronic data shall be in a format required by the director. The director may require reporting in both digital and traditional format.

(e) Nothing in an electronic submittal program established by the director limits the use of the electronically submitted reports, documents, or data or any information contained Item 8
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Adopting New PAMC
Chapter 16.66 (Hauled
Liquid Waste)

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therein as evidence in enforcement proceedings.

(f) Waste haulers shall comply with all reporting requirements established by the director. A waste hauler’s failure to submit required reports, documents or data as required or by the specified submission deadline shall constitute a violation of the provisions of this Chapter. The director may allow submission of required reports, documents and/or data on the following business day in instances where the due date falls on a weekend or legal holiday.

16.66.100 Retention of Records

Waste haulers subject to the reporting requirements of this Chapter shall retain, and make available for inspection and copying without unreasonable delay, all records of information obtained pursuant to this Chapter including, but not limited to, any required monitoring activities, any additional records of information obtained pursuant to monitoring activities undertaken by the discharger independent of such requirements, and documentation associated with best management practices. This includes electronic data and information records maintained and/or submitted in accordance with Section 16.66.090 of this Chapter. All records required to be maintained by this Chapter shall remain available for a period of at least three (3) years. This period shall be automatically extended for the duration of any pending investigation or enforcement of NPDES Permit conditions or where the discharger has been specifically notified of a longer retention period by the director.

16.66.110 Insurance

No person shall deliver or discharge hauled liquid wastes at the receiving station unless such person, at his or her sole cost and expense, has and maintains in full force and effect the insurance policies, endorsements, certificates and/or binders required by the City.

16.66.120 Hauled Liquid Waste Discharge Permit Modification

The director may modify any hauled liquid waste discharge permit for good cause, including, but not limited to, the following reasons:

(a) To incorporate any new or revised Federal, State, or local requirements;

(b) A change in the POTW that requires either a temporary or permanent reduction or elimination of the authorized discharge;

(c) Information indicating that the permitted discharge poses a threat to the POTW, City personnel, or the receiving waters;

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(e) Misrepresentations or failure to fully disclose all relevant facts in the hauled liquid waste discharge permit application or in any required reporting;

(f) To correct typographical or other errors in the hauled liquid waste discharge permit;

(g) To reflect a transfer of the facility ownership or operation to a new owner or operator; or

(h) To implement programs or policies required or requested of the City by appropriate Federal, State, or local regulatory agencies.

16.66.130 Hauled Liquid Waste Discharge Permit Suspension or Revocation

(a) The director may deny or suspend the use of the receiving station to any person who fails to comply with the orders, rules, regulations, and requirements adopted by the director or the terms and conditions contained in a hauled liquid waste discharge permit.

(b) The director may suspend or revoke a hauled liquid waste discharge permit indefinitely for good cause, including, but not limited to, the following reasons:

(1) Failure to complete a hauled liquid waste discharge permit application;

(2) Misrepresentation or failure to fully disclose all relevant facts in the hauled liquid waste discharge permit application;

(3) Knowingly or negligently providing false information on any hauled liquid waste discharge permit application, manifest, document, or other record submitted to the RWQCP;

(4) Falsifying reports and certification statements;

(5) Failure to accurately complete reports or other paperwork required by the director;

(6) Failure to provide a representative sample upon request;

(7) Tampering with monitoring equipment;

(8) Disposal of wastes originating outside the RWQCP service area without prior approval from the director;

(9) Disposal of wastes at the receiving station in a manner which causes or threatens to cause undue mess to the receiving station;
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(10) Disposal of wastes at any location other than the receiving station;

(11) Failure to pay fees, fines, or penalties;

(12) Failure to maintain a valid Environmental Health permit through the Santa Clara County Department of Environmental Health;

(13) Failure to provide advance notice of the transfer of business ownership;

(14) Violation of any term or condition of the hauled liquid waste discharge permit or any provision of this Chapter; or

(15) Failure of the waste hauler to comply with the waste handling, disposal, and reporting requirements of the Santa Clara County Department of Environmental Health.

(c) All hauled liquid waste discharge permits issued to a discharger are void upon the issuance of a new hauled liquid waste discharge permit to that discharger.

16.66.140 Hauled Liquid Waste Discharge Permit Denial, Suspension, or Revocation Hearing

(a) An applicant or permit holder shall have at its request, a hearing before the city manager, or his or her designee, to appeal a decision by the director to deny the applicant’s discharge permit application, suspend, or revoke a discharger’s discharge permit.

(b) The director shall give the applicant or permit holder written notice of intent to deny the applicant’s discharge permit application, suspend, or revoke a discharger’s discharge permit. The notice shall set forth specifically the grounds for the director’s intention to deny the applicant’s discharge permit application, suspend, or revoke a discharger’s discharge permit and shall inform the applicant or permit holder that they have ten (10) calendar days from the date of receipt of the notice to file a written request for a hearing with the director. The application shall be denied or the permit shall be revoked, or suspended if a hearing request is not received by the director within the ten (10) day period.

(c) If the applicant, permit holder, or interested party or parties file(s) a timely hearing request, the city manager, or his or her designee, shall within ten (10) calendar days from the receipt of the request, set a time and place for the hearing. All parties involved shall have the right to offer testimonial, documentary, and tangible evidence bearing on the issues and to be represented by counsel. The decision of the city manager, or designee, whether to deny the applicant’s discharge permit application or to modify, make subject to additional terms, suspend, or revoke the discharger’s discharge permit shall be final.

16.66.150 Personnel Orientation

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(a) Waste haulers shall attend orientation provided by the City prior to initial discharge but after permit issuance. All waste haulers are responsible for ensuring new drivers know where the receiving station is and how to use it, or to arrange for a City-provided orientation prior to discharge.

16.66.160 Enforcement and Penalties

(a) Warning. When the director finds that a user has violated, or continues to violate, any provision of this Chapter or a hauled liquid waste discharge permit, the director may issue verbal or written warnings in response to minor violations of this Chapter. Compliance with warnings does not limit further enforcement action by the City.

(b) Notice of violation. When the director finds that a user has violated, or continues to violate, any provision of this Chapter, a hauled liquid waste discharge permit, or order issued hereunder, the director may serve upon that discharger a written notice of violation (NOV). The NOV may include a deadline for the discharger to respond with an explanation of the violation and a plan for the satisfactory correction and prevention thereof. Submission of such a plan in no way relieves the discharger of liability for any violations occurring before or after receipt of the NOV. Nothing in this Section shall limit the authority of the director to take any action, including emergency actions or any other enforcement action, without first issuing a notice of violation.

(c) Administrative citation. When the director finds that a user has violated, or continues to violate, any provision of this Chapter or a hauled liquid waste discharge permit, the director may issue an administrative citation in accordance with the provisions contained in Chapter 1.12 of this code. Issuance of an administrative citation shall not be a bar against, or a prerequisite for, taking any other action against the person.

(d) Emergency suspension. The director may immediately suspend any discharge, after informal notice to the user, whenever such suspension is necessary to stop an actual or threatened discharge, which reasonably appears to present, or cause an imminent or substantial endangerment to the health, safety, or welfare of persons. The director may also immediately suspend a discharger’s discharge that threatens to interfere with the operation of the POTW, or which presents, or may present, an endangerment to the environment. Any discharger notified of a suspension of its discharge shall immediately stop or eliminate its contribution. In the event of a discharger’s failure to immediately comply voluntarily with the suspension order, the director may take such steps as deemed necessary to prevent or minimize damage to the POTW or endangerment to any persons.

The director may allow the discharger to recommence its discharge when the discharger has demonstrated to the satisfaction of the director that the period of endangerment has passed.

(e) Civil penalties.

(1) Any person who has violated, or continues to violate any provision of this Chapter or a hauled liquid waste discharge permit shall be liable to the City for a maximum Item 8
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civil penalty of up to twenty-five thousand dollars ($25,000) per day for each day in which such violation occurs.

(2) The City may petition the Superior Court of California pursuant to Government Code Section 54740 to recover the sums in subsection (e)(1) of this Section as well as reasonable attorneys’ fees, court costs, and other expenses associated with enforcement activities, including sampling and monitoring expenses, and the cost of any actual damages incurred by the City.

(3) Filing a suit for civil penalties shall not be a bar against, or a prerequisite for, taking any other action against a discharger.

(f) Criminal penalties. As provided in Chapter 1.08 of this code, violations of the provisions of this Chapter shall be subject to criminal penalties.

(g) Remedies nonexclusive. The remedies provided for in this Chapter are cumulative and not exclusive, and shall be in addition to the provisions of Chapters 1.08, 1.12, and 1.16 of this code, and all other remedies available to the City under Federal, State, or local law. The director may take any, all, or any combination of these actions against a noncompliant discharger. The director is empowered to take more than one enforcement action against any noncompliant discharger. Enforcement actions may be taken concurrently.

16.66.170 Charges and Fees

(a) The City may adopt reasonable fees for reimbursement of costs of setting up and operating the City’s hauled liquid waste program, which may include:

(1) Fees for treatment and discharge of hauled liquid waste;

(2) Fees for hauled liquid waste discharge permit applications including the cost of processing such applications;

(3) Fees for monitoring, inspection, and surveillance procedures including the cost of collection and analyzing a waste hauler’s discharge, and reviewing monitoring reports and certification statements submitted by waste haulers;

(4) Fees for filing appeals;

(5) Fees to recover administrative and other costs (not included in subsection (a)(2) of this Section) associated with the enforcement activity taken by the director to address discharger noncompliance; and

(6) Other fees as the City may deem necessary to carry out the requirements of this Chapter.

16.66.180 Closure of Receiving Station
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The director may suspend discharge of hauled liquid waste at the receiving station for a period of time deemed reasonable or necessary, for good cause including, but not limited to: RWQCP operational issues, concerns, or violations; emergencies; natural disasters; power failures; RWQCP maintenance or repair; excess flow entering the RWQCP; and weather conditions. Hauled liquid waste discharge permit holders shall have no recourse against the City for any reason including, but not limited to, economic loss incurred as a result of receiving station closure.

SECTION 3. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause, or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid.

SECTION 4. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15308 of the CEQA Guidelines, because it is an action taken by the City as a regulatory agency to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment.

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SECTION 5. This Ordinance shall be effective on the thirty-first day after the date of its adoption.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ City Attorney or Designee City Manager

____________________________
Director of Public Works

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Resolution No. _____
Resolution of the Council of the City of Palo Alto Amending and Restating the Administrative Penalty Schedule and Civil Penalty Schedules for Certain Violations of the Palo Alto Municipal Code

The Council of the City of Palo Alto RESOLVES as follows:

SECTION 1. Administrative Penalties. The administrative penalty schedule for violations of the Palo Alto Municipal Code established by Resolution No. 10144 is hereby amended and restated to read as follows:

Standard penalty unless otherwise indicated below. $50

Second violation within 36 month period 150% of listed penalty (unless otherwise specified)

Third & subsequent violations within 36 month period. 200% of listed penalty (unless otherwise specified)

Delinquency penalty. 10% per month, simple interest, on delinquent amount

4.04.020 License or permit required. 300

4.04.100 Display of license or permit. 300

4.10.045 License fees for pushcart vendors. 300

4.10.050 Regulations for solicitors and peddlers. 350

4.10.055 Identification cards for solicitors. 250

4.10.057 Regulations for pushcart vendors. 300

4.10.070 License required - circus etc. 300

4.10.120 Arcade prohibited. 250

4.10.200 Pawn brokers prohibited. 250

4.10.230 Daily report of second hand dealers. 250

4.10.240 Maintaining reports - second hand dealers. 250

4.10.260 Failure to make report - second hand dealers. 250

4.10.270 Second hand goods held for inspection. 250

4.18.040 Unlawful dog or cat kennel. 250

4.30.010 Soliciting without a permit. 250

4.30.100 Conduct of solicitations. 250

4.32.020 Soliciting without a permit. 250

4.32.060 Investigation of records of solicitor. 250

4.32.090 Acts required during solicitation. 250

4.32.100 Restriction of solicitation. 250

4.32.110 Hours of solicitation. 250

4.34.020 Permit required - closing out sale. 250

4.39.030 Audible alarms. 250

4.39.040 Limitation on automatic dialing devices. 250

4.39.060 Registration of alarm. 250

4.39.110 Alarm violations. 100

4.42.020 Certificate of public convenience. 1000
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4.42.085 Controlled substance and alcohol testing. 500

4.42.090 Taxi owners permit. 5000

4.42.100 Taxi drivers permit expired. 250

4.42.130(b) Taxi drivers permit not displayed. 250

4.42.190 Taximeters. 500

4.42.200 Taxi cab operating regulations. 250

4.42.210(a) Interference with inspection. 500

4.42.210(b) Inspection of vehicles. 500

4.42.220 Operating regulations. 500

4.42.230 Maintenance of vehicles. 500

4.51.030 License required - bingo. 250

4.51.050 Minors restricted - bingo. 50

4.51.080 Staffing and operations - bingo. 250

4.51.110 Physical presence required - bingo. 250

4.52.020 License required - billiards and bowling. 1000

4.52.040 Minors restricted - billiards and bowling. 250

4.52.060 Offensive conduct - billiards and bowling. 250

4.52.070 Interference w/emerg. Access -billiards/bowling. 250

4.54.030(a) Permit required - massage establishment. 1000

4.54.060(a) Permit required - massage tech. 250

4.54.110 Massage establishment facilities. 250

4.54.130 Business name - massage. 250

4.55.030 License required - adult entertainment. 1000

4.56.030 License required - hot tub and sauna. 1000

4.56.060 Employee permit required - hot tub and sauna. 250

4.56.100 Hot tub/sauna establishment and operations. 250

4.56.120 Business name - hot tub and sauna. 250

4.56.150 Display of permit - hot tub and sauna. 250

4.56.200 Employment of persons < 18 - hot tub and sauna. 250

4.57.020 Permit required - firearms sales. 1000

4.57.095 Firearms dealers – business and security. 500

4.58.020 Minors restricted - narcotics paraphernalia shop. 750

4.58.030 Regulations - narcotics paraphernalia shop. 750

4.59.010 Pet shop requirements. 250

4.59.020 Pet shop sanitation. 250

4.59.030 Pet shop food. 250

4.59.040 Pet shop notification. 250

4.59.050 Pet shop - sale of dangerous or wild animals. 250

4.59.070 Dead animals. 250

4.59.080 Permit required - pet shop and kennel. 250

4.59.090 Permit required - grooming shop. 250

4.59.095 Sales of kittens and puppies. 250

4.59.100 Sales of raccoons. 250

4.59.105 Sales of rabbits, chicks, ducklings. 250

4.60.030 Business registration required 250

4.60.060 Business registry application required 250

4.60.120(a) Business registry fee delinquency 50% of registry fee if 1-30 days late 100% of fee or 31+ days late

5.12.010 Permit required - refreshment stand. 250

5.20.030 Discarding solid waste. 250

5.20.040 Accumulation of garbage. 250

5.20.050 Unauthorized bins, boxes, containers-first violation. 500 Second and subsequent violations. 1000
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5.20.080 Number of containers required. 250

5.20.090 Collection of recyclable materials. 250 for Commercial Premises 50 for Residential Premises

5.20.100 Collection of compostable materials. 250 for Commercial Premises 50 for Residential Premises

5.20.105 Contamination of containers. 250 for Commercial Premises 50 for Residential Premises

5.20.108 Multifamily properties/Commercial premises. 250

5.20.109 Requirements for special events. 100

5.20.111 Self-haul in violation of code 100

5.20.120 Improper container condition. 250

5.20.130 Maintenance of bins and boxes- first violation. 250 Second and subsequent violations. 500

5.20.160 Spillage or leakage of solid waste. 250

5.20.180 No accumulation of solid waste. 250

5.20.190 No burning, burial, or dumping of solid waste. 250

5.20.200 Hazardous waste. 500

5.20.220 Scavenging prohibited. 100

5.30.020 Polystyrene & Non-Recyclable Plastic. 500

5.30.025(a)-(d) Limitation on use of Disposable Foodware items 100 and other Disposable products.

5.30.025(e) Prohibition of third-party vendors providing utensils 350 or condiments unless requested by customer.

5.35.020 Bags at retail establishments. 500

5.35.030 Bags at supermarkets. 500

6.08.020(b) Interference with animal control officer. 250

6.16.010 No dog license. 50

6.16.080 Number of dogs allowed. 100

6.16.100 Leash Law. 100

6.20.010 Animals at large. 100

6.20.020 Animals on unenclosed premises. 100

6.20.030 Animals kept in enclosures. 100

6.20.035 Tying animals to bicycle racks or trees. 100

6.20.040 Nuisance on sidewalk. 100

6.20.045 Animal waste removal - first offense. 25

6.20.045 Animal waste removal - second offense. 50

6.20.045 Animal waste removal - third offense. 125

6.20.055 Animals in vehicles. 250

6.20.060 Bees close to property line. 100

6.20.080 Permit required - livestock. 100

6.20.090 Maintaining birds, goats, pigs and rabbits. 100

6.20.110 Number of cats kept. 100

6.20.120 Permit required - breeding animals. 100

6.20.130 Cat or dog in heat. 100

6.20.140 Barking dogs. 100

6.20.150 Vaccination required - animals. 100

6.20.160 Sanitary enclosures. 100

6.20.170 Slaughter of animals. 500

6.24.020 Permit required - construction of stable. 250

6.24.050 Maintenance of stable. 250

6.28.040 Possession of dangerous or wild animals. 500

6.32.010 Keeping diseased animals. 500

6.32.020 Confining animals with rabies. 500
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6.32.050 Dead animals in public. 500

6.36.010 Sales of certain animals. 250

8.04.020 Unauthorized removal of public trees 5000 per tree or reproduction cost up to 10,000, whichever is greater

8.04.020(a) Failure to comply with permit 500 per tree for work on public trees.

8.04.020(a) Damage to public trees 150 per inch diameter of damaged tree part

8.04.020(b) Fasten a sign, wire, or injurious material 250 per tree to any public tree.

8.04.020(c) Excavate or pave near public trees 500 per tree

8.04.080 Interference with tree enforcement. 500

8.08.010 Weeds as public nuisance. 250

8.10.040 Failure to disclose protected tree 500 per tree

8.10.050 Unauthorized removal of protected tree 5000 per tree or reproduction cost up to 10,000, whichever is greater

8.10.055 Failure to comply with tree replacement. 750 per tree

8.10.070 Failure to care for protected trees. 500 per tree

8.10.080(b) Failure to comply with development conditions. 500 per condition

9.04.010 Open container in business district. 100

9.04.020 Open container in City parking lot. 100

9.04.030 Open container near liquor store. 100

9.04.040 Social host. First violation 250
Second violation 500
Third & subsequent violation 1000

9.07.020 Safe Storage of Firearms 1000

9.08.010 Discharge of firearms/fireworks. 1000

9.09.010(a) Urinating/defecating on street or public place. 250

9.09.010(b) Igniting or maintaining outdoor fire. 250

9.10.030 Residential property noise limits. 100

9.10.040 Commercial property noise limits. 100

9.10.050 Public property noise limits. 100

9.10.060(b) Construction noise signs. 250

9.10.060(c) Construction noise. 250

9.10.060(d) Construction equipment noise. 100

9.10.060(e) Residential power equipment noise. 100

9.10.060(f) Leaf blower noise- first violation. 250
Leaf blower noise- second violation 500
Leaf blower noise- third and subsequent violation 1000

9.10.060(g) Street sweeping noise. 100

9.10.060(h) Refuse collection noise. 100

9.10.060(i) Safety device noise. 100

9.10.060(k) Public parking lot cleaning noise. 100

9.10.060(l) Business district street cleaning noise. 100

9.12.010 Loudspeakers. 150

9.14.020 Smoking prohibited - enclosed places. 250 (2nd violation in 1 year: $300; 3rd and subsequent violations
in 1 year: $500)

9.14.025 Smoking prohibited – unenclosed areas. 250 (2nd violation in 1 year: $300; 3rd and subsequent violations
in 1 year: $500)

9.14.030 Smoking prohibited - city cars. 250 (2nd violation in 1 year: $300; Item 8
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3rd and subsequent violations
in 1 year: $500)

9.14.035 Smoking prohibited – public parks and public events 250 (2nd violation in 1 year: $300; 3rd and subsequent violations
in 1 year: $500)

9.14.040 Smoking prohibited - child care facilities. 250 (2nd violation in 1 year: $300; 3rd and subsequent violations
in 1 year: $500)

9.14.050 Smoking prohibited – commercial areas
and public events. 250 (2nd violation in 1 year: $300; 3rd and subsequent violations
in 1 year: $500)

9.14.080 Location of tobacco vending machines. 1000

9.14.090 Display of tobacco products. 500

9.14.100 Failure to post “No Smoking” signs. 50

9.22.010 Impersonating public officials. 500

9.26.020 False representation as police officer. 250

9.28.010 Hotel guest register required. 250

9.28.020 Use of false name by hotel guest. 50

9.40.020 Landing aircraft at other than airport. 1000

9.44.010 Solicitation prohibited - public parking lot. 100

9.48.010 Displaying goods on sidewalk. 50

9.48.025 Sitting or lying on University Avenue sidewalks. 100

9.48.030 Operation of sidewalk elevator. 500

9.48.040 Throwing rubbish on streets. 250

9.48.050 Obligation to clean sidewalk. 200

9.50.010 Graffiti prohibited on public property. 500

9.56.030 Abatement of public nuisance. 500 unless otherwise specified

9.56.030(a)(5) Thirty-five foot site triangle. 200

9.56.030(a)(8) Foliage/branch obstruction. 200

9.56.030(a)(10) Excessive planting strip vegetation height. 150

9.60.030 Blocking entrances to City Hall. 500

9.60.050 Placing signs or climbing on City Hall. 500

9.60.060 Bicycles and skateboards at City Hall. 50

9.60.070 Alcoholic beverages prohibited - City Hall. 100

9.64.010 Overnight use of community facilities 250

9.74.030 Discrimination in housing. 250

9.78.020 Mosquito breeding places. 500

9.79.100 News rack violations. 100

12.08.010 Permit required - public right of way. 500

12.08.100 Removal of City Engineer monuments. 500

12.11.010 Building parklet on public right-of-way without 1000 permit

12.11.060 Violation of Chapter 12.11, permit, or regulations 500

12.12.010 Building on public easement without or in violation 1000 of encroachment permit

12.12.020 Failure to obtain or violation of commercial 500 sidewalk encroachment permit

12.16.030 Overhead wires in underground districts. 500

12.16.090 Property owner responsibility. 500

12.20.010 Utility rules and regulations 500 unless otherwise specified

12.20.010 Emergency water conservation regulations 100 (2nd violation in 1 year: $250; (Reso. Nos. 9509, 9460, 9449) 3rd and subsequent violations Item 8
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12.20.020 Providing false information to City Utilities. 500

12.32.010 Water use regulation. 100

15.04.070 Violations of Uniform Fire Code. 500 unless otherwise specified

16.04.050 Violations of California Building Code as amended. 500 unless otherwise specified

16.05.040 Violations of California Mechanical Code as amended500

16.06.050 Violations of California Residential Code as amended.500

16.08.040 Violations of California Plumbing Code as amended. 500

16.09.200260 Violations of Sewer Use Ordinance 1000

16.10.020 Construction of private sewer system. 750

16.10.050 Permit required - private sewage system. 500

16.11 (All Sections) Violations of the Stormwater Pollution Prevention Ordinance 1000

16.13 (All Sections) Violations of the Food Facilities Ordinance 1000

16.14.040 Violations of California Green Building 500 Standards Code as amended

16.14.260 Failure to meet diversion requirements. $150 per ton of waste not diverted or $3000, whichever is
greater

16.14.370 Failure to meet diversion requirements. $150 per ton of waste not diverted or $3000, whichever is
greater

16.16.060 Violations of California Electrical Code as amended. 500

16.17.020 Violations of California Energy Code as amended. 500

16.18.020 Violations of International Pool and Spa Code as 500 amended

16.20.020 Design review required - signs. 500

16.20.090 Prohibited signs. 250

16.20.100 Prohibited locations - signs. 250

16.20.110 Fuel price signs required. 250

16.20.210 Non-compliance with sign ordinance. 250

16.20.230 Abandoned signs. 250

16.20.250 Parking of advertising vehicles. 250

16.24.080 Fence violation. 250

16.28.060 Permit required - excavation and grading. 500

16.28.330 Protection of adjacent property. 500

16.28.340 Deposits of earth, rock, etc. 500

16.32.010 Permit required - moving a building. 250

16.36.050 Curb painting without a permit. 100

16.36.060 House numbering required. 100

16.38.020 Certificate of occupancy – community housing. 500

16.40.040 Dangerous and substandard buildings. 500

16.40.090 Non-compliance with order of building official. 500

16.40.180 Interference with repair or demolition work. 500

16.42.090 Failure to submit seismic report. 250

16.45.070 Failure to pay fee - Stanford Research Park. 250

16.46.060 Failure to pay fee - San Antonio - West Bayshore. 250

16.47.050 Failure to pay housing impact fee. 250

16.49.050 Exterior alteration of downtown historic structures 10000 or a significant structure outside the downtown
without or in violation of permit

16.49.060 Demolition of a significant downtown building 10000 without or in violation of permit
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16.49.070 Demolition of a contributing downtown structure 10000 or significant structure outside the downtown
without or in violation of permit

16.49.080 Maintenance of downtown historic structure. 10000

16.49.090 Demolition of downtown historic structure. 10000

16.52.070 Construction - flood hazards. 500

16.59.090 Failure to pay fee- Citywide Transportation Impact. 250

16.60.090 Failure to pay fee- Charleston/Arastradero. 250

16.62.020 Maintenance of expired building permit 200 for 31st through 60th day 400 for 61st through 120th day
800 for 121st day and thereafter

16.66 (All Sections) Violations of Hauled Liquid Waste 1000 Ordinance

17.04.020 Violations of hazardous materials storage. 500, unless otherwise specified

17.04.030 Specific obligation - hazardous materials. 500

17.10.010 General obligation - underground storage tanks. 750 unless otherwise specified

17.10.040 Permit required - underground storage. 500

17.10.140 Financial responsibility - underground storage. 500

17.10.150 Monitoring underground storage tanks. 1000

17.10.170 Unlawful abandonment - underground storage tanks.1000

17.12.010 Permit required - hazardous materials storage. 750

17.12.020 New hazardous materials storage facilities. 750

17.12.060 Hazardous materials storage facilities. 750

17.16.010 Hazardous materials management plan. 250

17.20.010 Hazardous materials inventory statement. 250

17.24.010 Hazardous materials discharge report. 750

17.32.010 Permit required - storage of hazardous materials. 1000

18.01.080 Violation of zoning laws. 500

18.16.060(d)Hotel stay in excess of 30 days. 200

18.38.020 Planned Community zoning (unless otherwise 500 specified in PC ordinance) 2500 beginning the 181st day following notice of violation

Violations of Ordinance 5069 shall be subject to the penalties listed above except that the penalty for violations of Sections 4(b)(1),
(2), (6), and (7) of Ordinance 5069
shall not be subject to the
penalties above or to the
escalators for second, third and
subsequent violations, but shall be
$2157 per day, for each and every
day that a grocery store is not in
operation within College Terrace
Centre in accordance with the
terms of Ordinance 5069. (The City
Council intends to adjust this
penalty amount periodically in
future updates to this
administrative penalty schedule to
account for periodic increases in
the Consumer Price Index for All
Urban Consumers.) In calculating
the penalties for such violations,
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the City will allow for a grace
period for any daily violations that
do not exceed six (6) cumulative
months in any five (5) year period.

However, this grace period was
previously applied to violations
from 1/10/18 through 7/10/18, so
there is no entitlement to any
further grace period prior to
1/10/23.

18.42.060(a)Incompatibility of home occupations. 200

18.42.060(b) Employees of home occupation. 200

18.42.060(c) On site advertising of home occupation. 200

18.42.060(d) Floor area of home occupation. 200

18.42.060(e) Traffic related to home occupation. 200

18.42.060(f) Home occupation as nuisance. 200

18.42.060(g) Outdoor storage related to home occupation. 200

18.42.070 Servicing vehicles in residential zone. 250

18.52.050 Transportation demand management conditions 1000 4000 beginning the 181st day
following notice of violation

18.84.200 Temporary uses. 250

22.04.030 Compliance with park regulations. 46 for violation of regulation R1-6 requiring payment of Foothills Park
entry fee; 250 for violation of all
other Park & Open Space
Regulations.

22.04.040 Failure to obtain use permit. 300

22.04.150(b) Entry at unapproved location - Foothills Park 50

22.04.150(c) Person in park after hours - Foothills Park. 250

22.04.150(d) Speed limit 20MPH - Foothills Park. 250

22.04.150(e) Vehicles in Foothills Park after hours. 100

22.04.150(f) Skateboards and motorcycles - Foothills Park. 250

22.04.150(g) Smoking on trails - Foothills Park. 1000

22.04.150(h) Fires in Foothills Park. 1000

22.04.150(i) Use of trails - Foothills Park. 100

22.04.150(l) Unleashed dog - Foothills Park. 250

22.04.155 Restraint of dogs in City parks. 250

22.04.160 Permit required - sales in parks. 250

22.04.170 Violation of park use permit. 250

22.04.180 Sound in parks. 250

22.04.190 Unauthorized golf and other games in parks. 250

22.04.200 Unauthorized models and kites in parks. 100

22.04.210 Parking in parks. 100

22.04.215 Launch and takeout from ramp or dock. 250

22.04.220 Bicycle not permitted on trails. 250

22.04.230 Dumping in park. 1000

22.04.240 Interference with park use permit. 250

22.04.250 Park regulations . 250 unless otherwise specified

22.04.260 Discharge of weapons in park. 500

22.04.270 Removal of flora or fauna. 500

22.04.280 Removal of turf or soil. 500

22.04.290(a) Damaging, defacing, etc., property. 1000 Item 8
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22.04.290(b) Marking, writing or printing on property. 1000

22.04.290(c) Attaching sign, etc., without permit. 500

22.04.290(d) Entering, etc., structure after posted hours. 250

22.04.290(e) Bringing portable tables without a permit. 100

22.04.300 Unlawful fire in city park. 1000

22.04.310 Enid Pearson Arastradero, Esther Park closure. 250

22.04.315 Byxbee Park and Baylands closed. 250

22.04.320 Parks closed. 250

22.04.321(a)Skateboarding in park after hours. 50

22.04.322 Trespass at Rinconada Park pool. 50

22.04.330 Alcohol in Cogswell Park. 250

22.04.331 Alcohol in Lytton Plaza. 250

22.04.332 Alcohol in Johnson Park. 250

22.04.333 Alcohol in Boulware Park. 250

22.04.334 Alcohol in Scott St. Minipark. 250

22.04.335 Alcohol in Greer Park. 250

22.04.336(a)Alcohol in Rinconada Park. 250

22.04.337 Alcohol in Mitchell Park. 250

22.04.338 Alcohol in Robles Park. 250

22.04.339 Alcohol in Hopkins Park. 250

22.04.340 Vehicles in park. 250

22.04.341 Alcohol in El Palo Alto Park. 250

22.04.342 Alcohol in Heritage Park. 250

22.04.343 Alcohol in Pardee Park. 250

22.04.350 Consumption of alcoholic beverage in vehicles. 250

22.04.360 Open container in park - alcoholic beverage. 250

22.04.370 Reckless driving in park. 250

22.04.380 Unlawful riding and towing in parks. 250

22.04.390 Duck pond. 100

SECTION 2. Municipal Code Civil Penalties. The civil penalty schedule for violations of the Palo Alto Municipal Code established by Resolution No. 10113 is hereby restated to read as follows*:

Standard penalty unless otherwise indicated below. $46

10.36.020 No parking in parkways. 46

10.36.030(a)Storage on the street (72 hours). 86

10.36.040(a)(1)Vehicle for sale on street. 46

10.36.040(a)(2)Repairing vehicle on street. 46

10.36.050 Not w/in 18” of left curb--One-way street. 46

10.36.090 Removal of chalk markings. 111

10.40.020(a)(1)Parking violation – red curb. 46

10.40.020(a)(4)Parking violation – green curb. 46

10.40.020(a)(5)Parking violation – blue curb. 308

10.40.020(b)Parking in violation of sign (except blue curb). 46

10.40.020(b)Unlawful disabled parking - signs (blue curb). 308

10.40.040(b)Commercial vehicle double parking. 46

10.40.050 Unlawful parking in yellow loading zone. 46

10.40.060 Unlawful parking in passenger loading zone. 46

10.40.070 Unlawful alley parking. 46

10.40.100(g)Parking in a bus zone. 46

10.44.010(b)Overtime parking (limited time zone). 41

10.44.010(c)Additional violation of time limited or no 44 Item 8
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parking zones.

10.44.020(a)Oversized vehicle parking in residential or 46 public facilities zones 2am-6am.

10.44.040(b)Not in space marking. 46

10.44.050(b)Parking violation--temporary sign. 46

10.44.060 Dealers--parking for sale or repair. 46

10.44.070(b)Parking in violation of posted sign. 46

10.44.080 Vehicle obstruction of roadway or lot. 46

10.44.090 Unattended vehicle, engine running. 111

10.45.110 Parking in on-street valet parking space. 46

10.46.110 Overtime residential parking permit (CT) 53

10.48.030 Truck route violation. 211

10.50.100(a)Violation of posted RPP permit sign 53

10.60.070(c)Permit not properly displayed. 41

10.60.070(d)Overtime permit parking in City lot. 41

10.60.070(e)Parking without permit in permit area. 46

22.04.150(e)In Foothills Park after hours. 111

22.04.210 Parking in parks. 111
Late payment penalty. 35
Collection cost penalty. 35% of listed penalty

*All penalties include state-mandated assessments pursuant to Gov’t. Code 76000, S.B 1407(2008), and Government Code 76000.3 (S.B. 857, 2008) totaling $12.50.

SECTION 3. Vehicle Code Civil Penalties. The civil penalty schedule for violations of the California Vehicle Code established by Resolution No. 10113 is hereby restated to read as follows*:

5200 No front license plate. $78
(If corrected within 31 days) 10 (state mandated)
5204(a) No registration tabs on license plate. 78
(If corrected within 31 days) 10 (state mandated)
21113(a) Parking on public grounds. 46
22500(a) Parking in an intersection. 46
22500(b) Parking in a crosswalk. 46
22500(d) Parking w/in 15 feet--fire station driveway. 46 22500(e) Blocking driveway. 46
22500(f) Parking on sidewalk. 46
22500(g) Parking or stopping--excavation site, etc. 46 22500(h) Double parking on roadway. 46
22500(i) Parking in a bus zone. 261
22500(l) Parking in front of accessible curb. 303
22500.1 Parking in a fire lane (public or private). 46 22502 Right hand wheels not w/in 18” of rt. curb. 46
22505(b) Parking on state highway violation. 46
22507.8(a-b)Unlawful parking in handicapped space. 303 22507.8(c)(1-2)Straddling Lines/Cross hatched, disabled. 303 22511.57(a) Parking/standing of vehicle in disabled parking $753 stall or space with invalid license/placard.
22511.57(b) Unauthorized use of license/placard for vehicle $753 parking/standing in disabled parking stall or space.
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stall or space with counterfeit, forged, altered or
mutilated license/placard for disabled.
22514 Parking within 15 feet of fire hydrant. 46
22515 Unattended vehicle, engine running. 111
22516 Person locked in vehicle. 111
22521 Parking within 7 1/2 feet of railroad tracks. 46 22522 Parking near sidewalk access ramp. 303
22523(a) Unlawful abandonment of vehicle on highway. 131 22523(b) Abandoned vehicle--public/private property. 131 22526 Entering/blocking intersection – anti-gridlock. 131 22951 No street, alley parking--patron vehicles. 46

*All penalties include state-mandated assessments pursuant to Gov’t. Code 76000, S.B 1407(2008), and Government Code 76000.3 (S.B. 857, 2008) totaling $12.50.

SECTION 4. The Council finds that the adoption of this resolution does not meet the definition of a project under Public Resources Code Section 21065, thus, no environmental assessment under the California Environmental Quality Act is required.

SECTION 5. This resolution shall become effective on the date that the ordinances introduced September 15, 2025, amending Chapters 16.09 and 16.11, and adding Chapters

16.13 and 16.66 to the Palo Alto Municipal Code become effective.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

ATTEST: APPROVED:

________________________________ ________________________________ City Clerk Mayor

________________________________ ________________________________ City Attorney or Designee City Manager

________________________________
Director of Public Works

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: September 15, 2025
Report #:2508-5040
TITLE
QUASI-JUDICIAL. 400 Mitchell Lane [25PLN-00006]: Recommendation From the Planning and Transportation Commission to Uphold the Director’s Decision to Approve a Conditional Use Permit Allowing a Private University Educational Use Within an Existing Building. CEQA Status:

Exempt in accordance with CEQA Guidelines Section 15301 (Existing Facilities). Zone District: PF.

RECOMMENDATION
The Planning and Transportation Commission (PTC) recommends that Council take the following action:

1. Uphold the Director’s Decision to approve the proposed Conditional Use Permit based on findings and subject to conditions of approval set forth in the Record of Land Use Action in Attachment B.

EXECUTIVE SUMMARY
On June 9, 2025 the Director of Planning and Development Services (Director) tentatively approved a Conditional Use Permit (CUP) to allow a Private University Education Use within an existing building at 400 Mitchell Lane. A request for hearing was filed pursuant to PAMC Section

18.77.060 on July 17, 2025, within the 14-day period allowed for such requests following the tentative decision. In accordance with the standard review process, the project went before the Planning and Transportation Commission for a recommendation and is now presented to the City Council for a final decision.

The Planning and Transportation Commission recommended that Council uphold the Director’s decision to approve the project. In accordance with PAMC Section 18.77.060, this item is placed on the consent agenda within 45 days of the PTC’s recommendation. If Council chooses to remove the recommendation from the consent calendar, three votes are required. If pulled, the application shall be set for a new noticed hearing before the City Council.

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BACKGROUND
The request for public hearing did not specify any concerns with the project. Despite repeated requests to provide a reason for the appeal, the requestor has not responded to provide a specific reason, nor did the requestor attend the PTC hearing.

However, a separate e-mail sent by the requestor the day prior to filing a request for hearing expressed concerns that there were two separate applications on file for the same site, the subject application and a request for a hazardous tree removal. The requester stated that the two projects should be processed together and asserted that processing these separately is a violation of the California Environmental Quality Act (CEQA). As detailed in the City’s response to this e-mail (Attachment E), these two applications are unrelated and have independent utility. Therefore, staff disagrees that processing these two permits separately is a violation of CEQA.

Additional background information is provided in the PTC report for the proposed project.1 Project Description
The project is a request from Stanford University for a CUP for a private University educational use for the Doeer School of Sustainability at 400 Mitchell Lane. Stanford proposes to utilize the existing building and construct interior tenant improvements to accommodate the use. The site would offer working and training spaces and a field trip resource for students near transit. The facility is also intended to host a portion of the Geoscience Specimen Collection that includes geological and paleo samples to support a wide range of courses. The project plans are included in Attachment H. Physical improvements are limited to ADA improvements (e.g. for restrooms), replacement of existing HVAC, electrical and lighting improvements, and plumbing/fire safety improvements.

Neighborhood Setting and Character
The project site is located on a 0.551-acre portion of land on the same parcel as El Camino Park.

The property is owned by Stanford University, and the City has had a long-term lease on a portion of the parcel for the park since 1915. The property abuts the downtown Caltrain Station and the Palo Alto transit center with connections to the Dumbarton Express, SamTrans, VTA, and Marguerite Shuttles. The site is bordered by El Camino Real to the west, Alma Street/Caltrain train tracks to the east, Palo Alto Avenue to the north, and the University Avenue Caltrain bus transfer station to the south. The existing structure previously housed the American Red Cross and Urban Ministry of Palo Alto, that has been unoccupied for several years.

Planning and Transportation Commission Recommendation
On July 30, 2025, the Planning and Transportation Commission (PTC) conducted a public 1 The July 30, 2025, Planning and Transportation Commission Report is available online at:
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hearing3 and unanimously recommended that Council uphold the Director’s decision to approve the Conditional Use Permit application with modifications to add the word “University” to the CUP findings to further clarify the proposed use, revised language in Condition of Approval #13 to clearly indicate the duration of the CUP, and staff’s review of Conditions of Approval #22-33 to determine their applicability with removing any that do not apply to the project. The individual requesting the hearing did not attend the PTC hearing.4

ANALYSIS
Staff and the PTC have reviewed the proposed project and find that the project is in conformance with applicable plans, policies, regulations, and the CUP findings.

Consistency with the Comprehensive Plan, Area Plans, and Guidelines5 The Comprehensive Plan land use designation for the project site is Public Park (P) as it is located on the same parcel as El Camino Park. This land use designation is defined as “Open lands whose primary purpose is public access for active recreation and whose character is essentially urban.” The existing building is situated on a 0.551-acre area of the larger parcel and is not part of the park dedication. The City subleases the portion of the larger parcel that is dedicated as parkland. The proposed use would not impact park services or conflict with public access to the site and is a conditionally permitted use of the site. Therefore, the proposed use is consistent with the Comprehensive Plan land use designation.

Further, the project supports Comprehensive Plan Policy L-2.9 through the reuse of an existing building. The proposed use by the Standford Doeer School of Sustainability also aligns with Comprehensive Plan Policy C-1.5 by expanding access to nearby resources and fostering student engagement with its proximity to public transportation.

Zoning Compliance6
Staff has reviewed the proposed project’s consistency with the Public Facilities (PF) and applicable zoning standards. In the PF district, a Private University Education use is listed as a conditionally permitted use. The proposed project would not increase the existing floor area of the structure. No site plan changes are planned with the associated project beyond the replacement of a wooden accessibility ramp with a concrete replacement ramp. As part of the PTC recommendation, Condition of Approval #13 was revised to clearly indicate the duration of the CUP as provided by PAMC Section 18.77.100 – Duration of Permits. Staff also reviewed Conditions of Approval #22-33 to ensure their applicability to the project and removed one condition that did not apply to the project as reflected in Attachment B. Staff has concluded that the proposed use and renovation, as conditioned, comply with the City’s Zoning Code. 3 The July 30, 2025, Planning and Transportation Commission Report is available online at:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16561 4 The July 30, 2025, Planning and Transportation Commission meeting can be viewed online at:
https://youtube.com/watch?v=Yn2dywjPd4Q?feature=share
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Multi-Modal Access & Parking
Per Assembly Bill (AB) 209711 which “prohibits public agencies from enforcing minimum automobile parking requirements for developments located close to public transit,” no parking is required on sites located within 0.5 miles of a public transit station, such as the downtown Caltrain Station. There will be no reduction in parking spaces with the project. Currently, there are 17 parking stalls provided with 1 accessible parking stall.

Williamson Act
The California Land Conservation Act of 1965, commonly known as the Williamson Act, is a State program that discourages agricultural lands from being converted to urban uses, preserves open space, and promotes efficient urban growth patterns. In 1973, The City of Palo Alto and Stanford University entered into a Williamson Act Contract that included the subject property (Attachment F). Compatible uses with the governing contract are listed as the uses permitted by the regulations in the PF zoning district. Because a private educational use is a conditionally permitted use within the PF zoning district and the project will utilize an existing building, the proposed use is consistent with the existing Contract.

Consistency with Application Findings
The CUP findings for approval are set forth in PAMC Section 18.76.010 and are detailed in the June 9, 2025, tentative approval letter (Attachment C). However, staff notes that there are minor changes in text to the CUP findings to clarify the proposed use. Specifically, the Record of Land Use Action has been refined based on comments from the PTC to clearly indicate the proposed use as a Private University Educational use, which is differentiated from a private education use in the code. The findings were also modified to correct a minor factual error in reference to the age of the building and the age of the El Camino Park. These modifications are reflected in Attachment B. The proposed use is consistent with the Comprehensive Plan and is a conditionally permitted use set forth in the Zoning Code. Staff finds that the project would not be detrimental to the public health, safety, general welfare, or convenience.

POLICY IMPLICATIONS
Regional actions emphasize liveliness and activation at the Palo Alto Transit Center. VTA’s ad hoc subcommittee intends to transform the historic depot into an active, transit-friendly hub that enhances visitor experience, supports community engagement, and ensures long-term sustainability, with potential public-facing elements such as shared micromobility, limited retail/services, nonprofit space, and digital wayfinding/history kiosks. While MTC has funded near-term access work (Quarry Road Connection), that action does not set depot programming.

The application before the Planning Director, the Planning and Transportation Commission, and now the City Council is a Conditional Use Permit for a private university educational use within an existing Stanford-owned building in the PF district, where such use is conditionally 11 The text for Assembly Bill 2097 is available online:
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permitted. Approval requires findings that the use “will not be detrimental or injurious to property or improvements in the vicinity, and will not be detrimental to the public health, safety, general welfare, or convenience,” and that it “will be located and conducted in a manner in accord with the Palo Alto Comprehensive Plan and the purposes of the Zoning Ordinance.” Given the subcommittee’s activation focus on public-oriented, energizing uses at the depot, one could find that the private university use may not, by itself, fully advance that vision. Others may note the site has been long vacant and the proposal reuses an existing building on Stanford property; on that basis, the use may be viewed as not detrimental, even if it does not fully deliver the activation outcomes envisioned by VTA. If three or more City Councilmembers wish to study this further, the item can be removed from the Consent Calendar and scheduled for a future hearing.

FISCAL/RESOURCE IMPACT
The recommendation in this report has no significant budget or fiscal impacts. The proposed project is a private development that is subject to cost recovery; therefore, processing of this application does not directly impact City resources. The proposed private university use would utilize a vacant building.

STAKEHOLDER ENGAGEMENT
As part of the standard CUP review process, information about the application and about the proposed decision was mailed to owners and occupants of property within 600 feet of the subject property following the filing of the application and following the director’s decision. No comments were received from any members of the public prior to the issuance of the tentative decision. Following the tentative decision, the City received the request for hearing, which did not cite any specific concerns related to the Project. The PTC held a public hearing to consider the request for public hearing on June 30, 2025. Notice of that hearing was published in the Daily Post and mailed to property owners and tenants within a 600-foot radius at least 10 days prior to the public hearing. The requestor did not show up to the public hearing. One member of the public spoke at the hearing and expressed concerns with the separate tree removal permit citing that the tree removal information was difficult to find and should not be considered separate from the CUP. The request for a tree removal application letter (25PLN- 00131) is included in Attachment G.

ENVIRONMENTAL REVIEW
The subject project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. In accordance with Section 15301 (Existing Facilities), the project is exempt as the proposed activity will involve negligible or no expansion of the existing facilities.

As detailed in the City’s response to the appellant on June 17, 2025 (Attachment E), although there are two separate applications on file, one for the subject CUP and one for the removal of Item 9
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two Bay laurel (Laurus nobilis) trees (as hazardous tree removals), processing these applications separately is not a violation of CEQA. The CUP includes interior improvements and the change in use. The hazardous tree removals are not required to accommodate the proposed use and therefore the two projects have independent utility. Moreover, even if the two tree removals (and required replacement planting) were included in the subject application, the project would continue to be exempt from CEQA in accordance with CEQA Guidelines Section 15301.

Therefore, processing these projects separately does not change the conclusions of the environmental review under either application.

ATTACHMENTS
Attachment A: Location Map
Attachment B: Draft Record of Land Use Action
Attachment C: June 9, 2025, Tentative Approval Letter
Attachment D: Request for Hearing Letter
Attachment E: Email Correspondence Regarding CEQA Compliance Attachment F: Applicant’s Project Request Letter
Attachment G: Request for Tree Removal Application Letter (25PLN-00131) Attachment H: Project Plans
APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 9
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24 2425University Avenue _Train StationAmerican_Red CrossFire_Station # 1 Rescue_Air
GARAGETower_WellBuilding AAELECTIONEER COURTBuilding BBBuilding CCBuilding DD The PlazaBloomingdales
Building FLADY ELLEN PLBuilding WP F Chang'sParking Structure Sand Hill Station
Building C
13-190Neuroscience_Health Center
Building LAZMOOR PLACEFleming's Prime_Steakhouse_& Wine Bar 87.4'54.1'161.5'193.0'112.5'193.0'112.5' 105.0'50.0'225.0'93.0'12.5'37.5'112.5'130.5'125.0'143.0'112.5'50.0'12.5'93.0'100.0'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'112.5'112.9'12.5'112.5'.8'99.9'225.8'55.0'125.0'38.0'37.5'112.5'37.5'112.5'37.5'112.5'37.5'112.5'93.0'50.0'93.0'50.0'93.0'62.5'93.0'62.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'100.0'112.5'25.0'112.5'125.0'225.0'93.0'62.5'93.0'62.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'37.5'112.5'37.5'112.5'93.0'162.5'93.0'162.5'112.5'75.0'100.0'50.0'43.0'100.0'43.0'100.0'45.0'35.0'112.5'35.0'112.5'75.0'37.5'75.0'37.5'75.0'37.5'75.0'37.5'75.0'37.5'75.0'37.5'162.5'220.0'26.0'101.0'31.5'68.2'5.5'32.8'33.8'32.8'5.5'68.2'27.5'68.2'.8'32.8'25.0'32.8'.8'68.2'29.5'68.2'3.7'32.8'33.8'32.8'3.7'68.2'27.5'68.3'2.7'32.7'32.7'2.7'68.3'31.5'94.5'10.2'22.3'101.0'26.0'32.8'5.5'68.2'27.5'68.2'5.5'32.8'33.8'32.8'.8'68.3'29.5'68.3'.8'32.8'25.0'32.7'3.7'68.2'72.0'29.7'72.0'29.7'72.0'31.9'72.0'31.9'37.5'112.5'37.5'112.5'50.0'112.5'50.0'112.5'75.0'112.5'75.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'75.0'112.5'75.0'112.5'65.0'112.5'15.0'18.5'50.0'131.0'50.0'112.5'50.0'112.5'50.0'94.0'50.0'94.0' 190.0'190.0'190.0'75.0'40.0'75.0'40.0'75.0'66.0'75.0'66.0'50.0'106.0'50.0'106.0'75.0'106.0'75.0'106.0'50.0'106.0'50.0'106.0'50.0'106.0'50.0'50.0'106.0'50.0'106.0'50.0'106.0'50.0'106.0'50.0'106.0'50.0'106.0'50.0'106.0'50.0'106.0'50.0'106.0'50.0'106.0'45.0'106.0'45.0'106.0'30.0'106.0'30.0'106.0'25.0'106.0'25.0'106.0'50.0'106.0'50.0'106.0'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'100.0'50.0'100.0'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'125.0'50.0'125.0'50.0'125.0'50.0'125.0'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'112.5'50.0'32.5'5.0'80.0'45.0'112.5'5.0'80.0'5.0'80.0' 130.0'75.6'64.0'37.5'64.0'37.5'50.0'75.0'50.0'75.0'36.0'112.5'50.0'75.0'14.0'37.5'50.0'112.5'150.0'100.0'50.0'12.5'100.0'112.5'50.0'106.0'50.0'106.0'72.0'30.3'72.0'30.3'72.0'32.5'72.0'32.5'72.0'32.5'72.0'32.5'72.0'32.5'72.0'32.5'72.0'32.5'72.0'32.5'31.5'68.2'2.7'32.8'22.3'10.2'94.5'27.5'68.2'3.7'32.7'33.8'32.8'2.7'68.2'190.0'190.0'190.0'190.0'190.0'190.0'190.0'190.0'190.0'190.0'190.0'190.0' 542.81'542.81'542.81'542.81'542.81'542.81'542.81'542.81'77.3' 593.6' 588.3'51.3'79.0'30.0'69.9'31.6'70.0'31.6'54.3'30.0'27.7'74.5'39.2'486.4'32.9'122.4'5.3'977.6'144.5' 288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'514.7'149.8'55.0'14.4'10.2'41.8'19.3'15.5'13.2'17.3'133.6'436.5'42.4'49.6'338.1'64.5'73.8'14.4'.0'.2'6.8'.8'.9'.0'1.3'.8'.9'.8'.7'.8'1.1'12.1'9.8'17.2'23.9'177.8'66.1'24.2'566.5'45.7'7.0'329.0'135.0'336.8'143.1'60.0'602.1'229.8'43.9'124.5'68.1'195.1'77.2'204.2'

52.0'
288.7'335.5'235.2'254.7'85.8'45.0'114.5'45.0'114.5'25.0'6.0'25.0'99.4'50.0'95.4'60.0'171.5'60.0'171.5'171.5'44.8'171.5'44.7'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'288.7'335.5'235.2'254.7'85.8'89.8'111.5'89.7'111.5'50.0'112.5'50.0'112.5'100.0'112.5'100.0'112.5'75.0'112.5'75.0'112.5'275.0'77.1'147.0'35.4'128.0'112.5'35.4'147.0'35.4'147.0'75.0'37.5'75.0'37.5'75.0'75.0'75.0'75.0'150.0'112.5'150.0'112.5'785.2'56.2'202.6'10.9'10.0'10.0'11.9'84.5'336.8'143.1'329.0'135.0'84.5'21.4'10.8'10.6'124.9'112.0'25.2'31.7'17.7'9.6'9.2'

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Bldg AABldg BBBldg CBldg CCBldg DDBldg FBldg GBldg L180 Bldg W 205252270271101141143325Bldg A120121129131139207221223215-233251432436101 225-233228- 234210- 216250-254209-215223- 229247-259251- 257241- 247272-280311-317240- 248202- 216335101 211213
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QUARRY ROADQUARRY ROADEL CAMINO REALPALO ALTO AVENUEEL CAMINO REALEL CAMINO REALEL CAMINO REALPALO ALTO AVENUEHAWTHORNE AVENUEEMERSON STREETRAMONA STREETEMERSON STREETHAWTHORNE AVENUEHIGH STREETEVERETT AVENUEEVERETT AVENUEHIGH STREETALMA STREETALMA STREETALMA STREETLYTTON AVENUEEL CAMINO REALQUARRY ROADALMA STREETEMERSON STREETHIGH STREETRAMONA STREET

UNIVERSITY CIRCLEMITCHELL LANE
LANE 15 EASTSAND HILL ROAD

PEAR LANESWEET OLIVE WAYEL CAMINO REALSHOPPING CENTER WAYPISTACHE PLACE PENINSULA CORRIDOR JOINT POWERS BOARDPENINSULA CORRIDOR JOINT POWERS BOARDPENINSULA CORRIDOR JOINT POWERS BOARD

PALO ROAD
RM-30
RM-30
PC-3429
PC-5158

RMD (NP)

CD-N (P)

CD-C (P)
PC-3111

CD-C (GF)(P)
PC-4262
PC-3102
PC-4182
RM-20

CD-N (P)
PC-4374
RM-30 PC-4243

RMD (NP)
PC-3266
RM-30
El Camino ParkEl Camino Park
Stanford Shopping Center
El Palo Alto ParkTract No. 5447El Palo Alto Park
Lot Q
This map is a product of the
City of Palo Alto GIS
This document is a graphic representation only of best available sources.

Legend
Railroad
Zone Districts
Tree
Project
Project Building
0' 281'
Attachment ALocation Map 400 Mitchell Lane

CITY OF PALO ALTOINCORPORATEDCALIFORNIA
P a l o A l t o
T h e C i t y o f
APRIL 16 1894
The City of Palo Alto assumes no responsibility for any errors ©1989 to 2016 City of Palo Alto sswitze, 2025-08-11 16:11:50
(\\cc-maps\Encompass\Admin\Personal\Planning.mdb)
Item 9
Attachment A - Location
Map

Item 9: Staff Report
Pg.
7 Packet Pg. 294 of 445

Page 1 of 8 ends

ACTION NO. 2025-____

RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 400 MITCHELL LANE: CONDITIONAL USE PERMIT (25PLN-00006) On September 8, 2025, the Council of the City of Palo Alto held a duly noticed public hearing and, after considering all of the evidence presented, approved the Conditional Use Permit application for a Private University educational use in the PF Zoning District, making the following findings, determination and declarations:

SECTION 1. Background.

A. On January 8, 2025, Stanford University filed and application for a Conditional Use Permit (CUP) to allow for a Private University educational use within an existing building at 400 Mitchell Lane (“The Project”).

B. In accordance with 18.16.040, a CUP is required for a Private University educational use within the PF zoning district.

C. On June 9, 2025, The Director of Planning and Development Services tentatively approved the CUP in accordance with, and subject to the provisions of, City of Palo Alto Municipal Code (PAMC) Chapter 18.76.

D. On July 17, 2025, within the 14-day request for hearing period following the tentative decision, a request for hearing was filed pursuant to PAMC Section 18.77.060.

E. Following the hearing request, on July 30, 2025, the Planning and Transportation Commission held a duly noticed public hearing, at which evidence was presented and all persons were afforded an opportunity to be heard. The Commission recommended approval of the proposed project to City Council.

F. On September 8, 2025, the City Council held a duly noticed public hearing on the CUP application, at which evidence was presented and all persons were afforded an opportunity to be heard in accordance with the Palo Alto Municipal Code and the Council’s Policies and Procedures.

SECTION 2. Environmental Review. The City, acting as the lead agency for the project, has determined that the project is exempt from the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15301 (Existing Facilities), which provides exemptions for existing facilities.

SECTION 3. Conditional Use Permit Findings
Conditional Use Permit approval is based on the findings indicated under PAMC Section 18.76.010:

1.The proposed use, at the proposed location, will not be detrimental or injurious to property or improvements in the vicinity, and will not be detrimental to the public health, safety, general Item 9
Attachment B - Draft Record
of Land Use Action

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welfare, or convenience.

Stanford University will utilize the existing building for field education services with working and training spaces and host a portion of the Geoscience Specimen Collection. The building will provide the space needed for geological and paleo specimen management, staging, and preparation. The site’s close proximity to a high-quality public transit facility, Caltrain, and other public transportation methods will facilitate student participation, provide resources, and promote sustainable scientific practices. The project does not propose any expansion of the existing building and the scope of work is limited to interior and utility improvements. The project, as conditioned, complies with applicable building and fire requirements for any proposed tenant improvements and for use and occupancy. For these reasons the proposed Private University educational use will not be conducted in a manner that will be injurious to property or improvements in the vicinity or that could be detrimental to the public health, safety, and general welfare, or convenience.

2.The proposed use will be located and conducted in a manner in accord with the Palo Alto Comprehensive Plan and the purposes of the Zoning Ordinance.

The subject property has a land use designation of Public Park as it is located on the same parcel as El Camino Park. This land use designation is defined as “Open lands whose primary purpose is public access for active recreation and whose character is essentially urban.” The existing building is situated on a 0.551 subleased area of the larger parcel and is not part of the park dedication. The proposed use of the existing building is compatible with the land use designation as it would not prevent or impede current El Camino Park services. The subject building was previously used by the American Red Cross and Urban Ministry of Palo Alto and has since been vacant. The site is zoned Public Facilities (PF). This zoning allows Private University educational uses as a conditionally permitted use. In 1973, The City of Palo Alto and Stanford University entered into a Williamson Act Contract that included the subject property. Uses permitted by the regulations in the PF zoning district are listed as a compatible use with the governing Williamson Act Contract. Therefore, approval of the project for use of an existing building on the property that is consistent with the PF Zone District’s permitted uses would not result in any conflicts with the existing Willamson Act Contract. The CUP allows the City to review the proposed use at this location to assure that it maintains operations that are compatible with the zoning district and other existing neighborhood uses. As conditioned, the proposed use will be located and conducted in a manner in accord with the Palo Alto Comprehensive Plan and the purposes of the Zoning Ordinance.

SECTION 4. Conditions of Approval.

Planning Division

1. CONFORMANCE WITH PLANS. Construction and development shall conform to the approved plans entitled, " C3_400 Mitchell Lane_Plan,” uploaded to the Palo Alto Online Permitting Services Citizen Portal on April 14, 2025, as modified by these conditions of approval.

2. USE AND OCCUPANCY PERMIT. A valid Use and Occupancy permit issued by the Building Item 9
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Department is required for the Stanford University Doerr School.

3. BUILIDNG PERMIT. A copy of this approval letter shall be printed on any drawings submitted for building permit related to this use.

4. HOURS OF OPERATION. The use is allowed to operate from 6:00 a.m. to 10:00 p.m. per Zoning Code Sections 18.42.040, 18.42.090. All clean up or set up activities shall be conducted within these approved business hours.

5. EVENTS. The Private Educational Use is limited to twelve (12) special events in a calendar year.

Any special event more than the allotted twelve (12) requires approval of a Temporary Use Permit, which must be filed with the City no less than 45 days from the date of the event. The Temporary Use Permit may include conditions to address traffic, circulation, parking, noise, litter, event timing, duration or other conditions deemed appropriate to mitigate potential nuisances to area residents, nearby businesses and institutions, and traffic.

6. CAPACITY. The Private Educational Use shall not exceed the maximum occupant load as provided by the building’s occupancy classification in the California Building Standards Code (Cal. Code Regs. Title 24).

7. GROSS FLOOR AREA, LOT COVERAGE AND PARKING. This approval does not include any changes/increase in gross floor area, lot coverage, or parking on the property. The tenant shall manage the use such that the parking demand of the use does not exceed the parking spaces allocated to the property through the Parking Assessment District and consistent with the project description.

8. SIGNAGE. This approval does not include new signage or adjustments to existing signage.

9. EXTERIOR ALTERATIONS. Any exterior alterations would require a separate Architectural Review application.

10. PROPERTY MAINTENANCE. The operator shall keep the subject property free of litter associated with the business operation.

11. INTENSIFICATION. Any intensification of use shall require an amendment to the Conditional Use Permit and any other entitlements as specified in the Palo Alto Municipal Code.

12. NUISANCES AND NOISE. The business shall be operated in a manner to protect any nearby residential properties from excessive noise, odors, lighting, or other nuisances from any sources during the business hours. Noise levels emanating from the restaurant use shall not exceed the maximum level established in the PAMC Chapter 9.10.

13. EXPIRATION. The project approval shall be valid for a period of one year from the original date of approval. In the event a building permit(s) is not secured for the project, or the use does not Item 9
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commence within the time limit specified above, the approval shall expire and be of no further force or effect. If a use authorized by a permit or approval is discontinued for a period of twelve months, the permit or approval will no longer be in effect. If a building or structure that is subject to a permit or approval is destroyed or demolished, the permit or approval will no longer be in effect.

14. REVOCATION OR MODIFICATION OF APPROVALS. The director may issue a notice of noncompliance for any failure to comply with any condition of this permit approval, or when a use conducted pursuant to a Conditional Use Permit is being conducted in a manner detrimental to the public health, safety, and welfare.

15. INDEMNITY. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice.

Building Division

16. As part of the Use and Occupancy permit submittal and/or as part of building permit submittal for a tenant improvement, include the furniture layout with exiting path, occupants, exit sign/path clearly shown.

17. Submit tenant improvement plans as part of building permit submittal. Refer to the following submittal checklist for additional information and submittal requirements. https://www.cityofpaloalto.org/files/assets/public/v/6/development-services/building- division/checklists/simplified/c8-tenant-improvement-submittal-checklist_1.16.2025.pdf Utilities Department
The following comments are required to be addressed prior to any future related permit application such as a Building Permit, Excavation and Grading Permit, Certificate of Compliance, Street Work Permit, Encroachment Permit, etc.:

FOR BUILDING PERMIT (WGW Utility Engineering)

18. The applicant shall submit a completed water-gas-wastewater service connection application - load sheet for the City of Palo Alto Utilities. The applicant must provide all the information requested for utility service demands (water in fixture units/g.p.m., gas in b.t.u.h, and sewer in fixture units/g.p.d.). The applicant shall provide the existing (prior) loads, the new loads, and the combined/total loads (the new loads plus any existing loads to remain).

19. The applicant shall submit improvement plans for utility construction. The plans must show the size and location of all underground utilities within the development and the public right of way Item 9
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including meters, backflow preventers, fire service requirements, sewer mains, sewer cleanouts, sewer lift stations, and any other required utilities. Plans for new wastewater laterals and mains need to include new wastewater pipe profiles showing existing potentially conflicting utilities especially storm drain pipes, electric and communication duct banks. Existing duct banks need to be daylighted by potholing to the bottom of the duct bank to verify cross section prior to plan approval and starting lateral installation. Plans for new storm drain mains and laterals need to include profiles showing existing potential conflicts with sewer, water, and gas.

20. The applicant must show on the site plan the existence of any auxiliary water supply, (i.e. water well, gray water, recycled water, rain catchment, water storage tank, etc).

21. The applicant shall be responsible for installing and upgrading the existing utility mains and/or services, laterals as necessary to handle anticipated peak loads. This responsibility includes all costs associated with the design and construction for the installation/upgrade of the utility mains and/or services/laterals.

22. An approved reduced pressure principle assembly (RPPA backflow preventer device) is required for all existing and new water connections from Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive. The RPPA shall be installed on the owner's property and directly behind the water meter within 5 feet of the property line. RPPA’s for domestic service shall be lead free. Show the location of the RPPA on the plans.

23. An approved reduced pressure detector assembly (RPDA backflow preventer device, STD. WD- 12A or STD. WD-12B) is required for all existing and new fire water connections from Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive. The RPDA shall be installed on the owner's property and directly behind the City owned meter, within 5’ (feet) of the property line or City Right of Way.

24. All backflow preventer devices shall be approved by the WGW engineering division. Inspection by the city inspector is required for the supply pipe between the meter and the assembly.

25. The applicant shall pay the capacity fees and connection fees associated with new utility service/s or added demand on existing services. The approved relocation of services, meters, hydrants, or other facilities will be performed at the cost of the person/entity requesting the relocation.

26. If a new water service line installation for fire system usage is required. Show the location of the new water service on the plans. The applicant shall provide to the engineering department a copy of the plans for fire system including all fire department's requirements.

27. Each unit or building shall have its own water meter and gas meter shown on the plans. Each parcel shall have its own water and gas service and sewer lateral connection shown on the plans.

28. A sewer lateral per lot is required. Show the location of the new sewer lateral on the plans. A Item 9
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profile of the sewer lateral is required showing any possible conflicts with storm, electric/communications ductbanks or other utilities.

29. All existing water, and gas. and wastewater services/laterals that will not be reused shall be abandoned at the main per the latest WGW utilities standards.

30. Utility vaults, transformers, utility cabinets, concrete bases, or other structures cannot be placed over existing water, gas, or wastewater mains/services. Maintain 1’ horizontal clear separation from the vault/cabinet/concrete base to existing utilities as found in the field. If there is a conflict with existing utilities, Cabinets/vaults/bases shall be relocated from the plan location as needed to meet field conditions. Trees may not be planted within 10 feet of existing water, gas, and wastewater mains/laterals/water services/or meters. New water or wastewater services/laterals/meters may not be installed within 10’ of existing trees. Maintain 10’ between new trees and new water and wastewater services/laterals/meters.

31. The applicant shall provide to the WGW Utility Engineering department a copy of the plans for fire system including all fire department's requirements prior to the actual service installation.

32. All utility installations shall be in accordance with the City of Palo Alto utility standards for water, gas, & wastewater.

Zero Waste Division

33. Provide all three types of containers (recycle, compost, and landfill) as required by PAMC

5.20.108 and SB 1383 in the structure, including in the training room. If the scope of work involves installing internal and/or external refuse bins, then the following requirements apply.

Refer to Palo Alto Municipal Code 5.20.108 - Requirements for owners or managers of multifamily properties and commercial premises. Any location where refuse bins will be installed shall have three bins - recycle (blue container), compost (green container), and garbage (black container).

Show on the plans where the bins will be placed. The three types of refuse bins must be placed right next to each other. Provide cut sheets for the types of refuse bins (recycle, compost, and landfill) that will be used, any related millwork and colored signage. Locations where refuse bins may be located include common area such as entrances, lobbies, conference rooms, back of the house kitchen, cafés, breakrooms, and dining areas (if applicable). The only exceptions are restrooms, copy areas, and mother’s room.
a. Restrooms must have a green compost container for paper towels and an optional black landfill container if applicable. For wall mounted bins, signage must be placed on the bin.
b. Copy areas and mail areas must have either a recycle bin only or all three refuse receptacles (green compost, blue recycle, and black landfill container). c. Mother’s room must minimally have a green compost container and black landfill container.
d. Laboratory sinks need at least a compost container. A recycling container and a landfill container may also be required depending on waste generated in the lab.

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34. If refuse bins will be placed inside a cabinet, then provide cut-sheets for the millwork. The front of the cabinet doors shall have a minimum of four inches in height worth of color-coding, extending the full width of the cabinet door. If there are openings on top of the millwork then the holes need be colored. Signage must also be provided on the containers and on front of the cabinet doors.

35. Signage must be color coded with photos or illustrations of commonly discarded items that are acceptable to place into the bin and words or text of items which are not acceptable to be placed into the bin. Please refer to PAMC 5.20.108 and the Internal Container Guide. Examples of appropriate signage can be found in the Managing Zero Waste at Your Business Guide. Electronic copies of these signage can be found on the Zero Waste Palo Alto’s website, https://www.cityofpaloalto.org/Departments/Public-Works/Zero-Waste/What-Goes- Where/Toolkit#section-2 and hard copies can be requested from the waste hauler, GreenWaste of Palo Alto, (650) 493-4894.

Fire Department

36. Early detection fire alarm system shall be required for the proposed use. This shall be incorporated as part of the Use and Occupancy permit submittal and/or as part of building permit submittal for a tenant improvement.

SECTION 5. Term of Approval.

1. Conditional Use Permit. The project approval shall be valid for a period of one year from the original date of approval. In the event the use does not commence within the time limit specified above, the approval shall expire and be of no further force or effect. Additionally, A Use Permit that has not been used for a period of one (1) year or more shall become null and void (PAMC 18.77.100).
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INTRODUCED: September 8, 2025
PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST: APPROVED:
_________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM:
_________________________ ____________________________
Assistant City Attorney City Manager
_____________________________
Director of Planning and
Development Services
PLANS AND DRAWINGS REFERENCED:

Those plans titled “C3_400 Mitchell Lane_Plan; Conditional Use Permit; Stanford University,” consisting of eight (8) pages, dated April 14, 2025. A copy of these plans is on file with the Department of Planning and Development Services.

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Attachments: Findings and Conditions of Approval
June 9, 2025

The Board of Trustees of the Leland Stanford Junior University 415 Broadway St, 3rd Floor MC 8873
Redwood City, CA 94063

Subject: 400 Mitchell Lane (25PLN-00006) Conditional Use Permit for Private Educational Use

The application referenced above has been conditionally approved by the Director of Planning and Development Services. The approval was granted pursuant to Palo Alto Municipal Code (PAMC) Section 18.77. This determination is based on the review of all information contained within the project file, all public comments received, and the review of the proposal in comparison to applicable zoning and municipal code requirements.

PROJECT DESCRIPTION: Request for a Conditional Use Permit to allow for a Private Educational use within an existing building at 400 Mitchell Lane. Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act (CEQA) in Accordance with CEQA Guidelines Section 15301 (Existing Facilities). Zone District: PF.

This Conditional Use Permit is granted in accordance with and subject to the provisions of Chapter

18.76 of the City of Palo Alto Municipal Code. This Director’s decision shall become final fourteen (14) calendar days from the postmark date of this mailing (or on the next business day if it falls on a weekend or holiday) unless a request for hearing is filed pursuant to PAMC Section 18.77.060.

The request for hearing shall be in writing and submitted to the Planning Division, prior to the end of the business day of the fourteenth day. If a hearing is not requested the Director’s decision will become final. A Conditional Use Permit that has not been used for any period of one (1) year or more shall become null and void (PAMC 18.77.100). The time period to start the proposed use may be extended once for an additional year by the Director of Planning.

Should you have any questions regarding the Director’s decision, please do not hesitate to contact the project planner, Steven Switzer, by email, [email protected] or call, (650) 329-2321.

Sincerely,

Steven Switzer
Project Planner

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CONDITIONAL USE PERMIT FINDINGS

Conditional Use Permit approval is based on the findings indicated under PAMC Section 18.76.010 and is subject to the Conditions of Approval listed below:

1. The proposed use, at the proposed location, will not be detrimental or injurious to property or improvements in the vicinity, and will not be detrimental to the public health, safety, general welfare, or convenience.

Stanford University will utilize the existing building for field education services with working and training spaces and host a portion of the Geoscience Specimen Collection. The building will provide the space needed for geological and paleo specimen management, staging, and preparation. The site’s close proximity to a high-quality public transit facility, Caltrain, and other public transportation methods will facilitate student participation, provide resources, and promote sustainable scientific practices. The project does not propose any expansion of the existing building and the scope of work is limited to interior and utility improvements. The project, as conditioned, complies with applicable building and fire requirements for any proposed tenant improvements and for use and occupancy. For these reasons the proposed Private Educational use will not be conducted in a manner that will be injurious to property or improvements in the vicinity or that could be detrimental to the public health, safety, and general welfare, or convenience.

2. The proposed use will be located and conducted in a manner in accord with the Palo Alto Comprehensive Plan and the purposes of the Zoning Ordinance.

The subject property has a land use designation of Public Park as it is located on the same parcel as El Camino Park. This land use designation is defined as “Open lands whose primary purpose is public access for active recreation and whose character is essentially urban.” The existing building existed prior to development of the park on this same parcel and the proposed use is compatible with this land use designation. The site is zoned Public Facilities (PF). This zoning allows Private Educational uses as a conditionally permitted use. In 1973, The City of Palo Alto and Stanford University entered into a Williamson Act Contract that included the subject property. Uses permitted by the regulations in the PF zoning district are listed as a compatible use with the governing Williamson Act Contract. Therefore, approval of the project for use of an existing building on the property that is consistent with the PF Zone District’s permitted uses would not result in any conflicts with the existing Willamson Act Contract. The CUP allows the City to review the proposed use at this location to assure that it maintains operations that are compatible with the zoning district and other existing neighborhood uses.

As conditioned, the proposed use will be located and conducted in a manner in accord with the Palo Alto Comprehensive Plan and the purposes of the Zoning Ordinance.

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CONDITIONS OF APPROVAL

Planning

2. USE AND OCCUPANCY PERMIT. A valid Use and Occupancy permit issued by the Building Department is required for the Stanford University Doerr School.

3. BUILIDNG PERMIT. A copy of this approval letter shall be printed on any drawings submitted for building permit related to this use.

5. EVENTS. The Private Educational Use is limited to twelve (12) special events in a calendar year.

Any special event more than the allotted twelve (12) requires approval of a Temporary Use Permit, which must be filed with the City no less than 45 days from the date of the event. The Temporary Use Permit may include conditions to address traffic, circula tion, parking, noise, litter, event timing, duration or other conditions deemed appropriate to mitigate potential nuisances to area residents, nearby businesses and institutions, and traffic.

8. SIGNAGE. This approval does not include new signage or adjustments to existing signage.

9. EXTERIOR ALTERATIONS. Any exterior alterations would require a separate Architectural Review application.

10. PROPERTY MAINTENANCE. The operator shall keep the subject property free of litter associated with the business operation.

11. INTENSIFICATION. Any intensification of use shall require an amendment to the Conditional Use Permit and any other entitlements as specified in the Palo Alto Municipal Code.

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12. NUISANCES AND NOISE. The business shall be operated in a manner to protect any ne arby residential properties from excessive noise, odors, lighting, or other nuisances from any sources during the business hours. Noise levels emanating from the restaurant use shall not exceed the maximum level established in the PAMC Chapter 9.10.

13. EXPIRATION. The project approval shall be valid for a period of one year from the original date of approval. In the event a building permit(s) is not secured for the project, or the use does not commence within the time limit specified above, the approval shall expire and be of no further force or effect.

14. REVOCATION OR MODIF ICATION OF APPROVALS . The director may issue a notice of noncompliance for any failure to comply with any condition of this permit approval, or when a use conducted pursuant to a Conditional Use Permit is being conducted in a manner detrimental to the public health, safety, and welfare.

Building Department

Utilities Department

The following comments are required to be addressed prior to any future related permit application such as a Building Permit, Excavation and Grading Permit, Certificate of Compliance, Street Work Permit, Encroachment Permit, etc.:

PRIOR TO ISSUANCE OF DEMOLITION PERMIT (if required)

18. The applicant shall submit a request to disconnect utility services and remove meters. The utilities demo is to be processed within 10 working days after receipt of the request. The Docusign Envelope ID: EFC9E493-D4F3-4C97-B647-A8989D5D8328 Item 9
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demolition permit will be issued by the building inspection division after all utility services and/or meters have been disconnected and removed.

FOR BUILDING PERMIT (WGW Utility Engineering)

19. The applicant shall submit a completed water-gas-wastewater service connection application - load sheet for the City of Palo Alto Utilities. The applicant must provide all the information requested for utility service demands (water in fixture units/g.p.m., gas in b.t.u.h, and sewer in fixture units/g.p.d.). The applicant shall provide the existing (prior) loads, the new loads, and the combined/total loads (the new loads plus any existing loads to remain).

20. The applicant shall submit improvement plans for utility construction. The plans must show the size and location of all underground utilities within the development and the public right of way including meters, backflow preventers, fire service requirements, sewer mains, sewer cleanouts, sewer lift stations, and any other required utilities. Plans for new wastewater laterals and mains need to include new wastewater pipe profiles showing existing potentially conflicting utilities especially storm drain pipes, electric and communication duct banks. Existing duct banks need to be daylighted by potholing to the bottom of the duct bank to verify cross section prior to plan approval and starting lateral installation. Plans for new storm drain mains and laterals need to include profiles showing existing potential conflicts with sewer, water, and gas.

21. The applicant must show on the site plan the existence of any auxiliary water supply, (i.e. water well, gray water, recycled water, rain catchment, water storage tank, etc).

22. The applicant shall be responsible for installing and upgrading the existing utility mains and/or services, laterals as necessary to handle anticipated peak loads. This responsibility includes all costs associated with the design and construction for the installation/upgrade of the utility mains and/or services/laterals.

23. An approved reduced pressure principle assembly (RPPA backflow preventer device) is required for all existing and new water connections from Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive. The RPPA shall be installed on the owner's property and directly behind the water meter within 5 feet of the property line. RPPA’s for domestic service shall be lead free. Show the location of the RPPA on the plans.

24. An approved reduced pressure detector assembly (RPDA backflow preventer device, STD.

WD-12A or STD. WD-12B) is required for all existing and new fire water connections from Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive. The RPDA shall be installed on the owner's property and directly behind the City owned meter, within 5’ (feet) of the property line or City Right of Way.

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25. All backflow preventer devices shall be approved by the WGW engineering division.

Inspection by the city inspector is required for the supply pipe between the meter and the assembly.

26. The applicant shall pay the capacity fees and connection fees associated with new utility service/s or added demand on existing services. The approved relocation of services, meters, hydrants, or other facilities will be performed at the cost of the person/entity requesting the relocation.

27. If a new water service line installation for fire system usage is required. Show the location of the new water service on the plans. The applicant shall provide to the engineering department a copy of the plans for fire system including all fire department's requirements.

28. Each unit or building shall have its own water meter and gas meter shown on the plans.

Each parcel shall have its own water and gas service and sewer lateral connection shown on the plans.

29. A sewer lateral per lot is required. Show the location of the new sewer lateral on the plans.

A profile of the sewer lateral is required showing any possible conflicts with storm, electric/communications ductbanks or other utilities.

30. All existing water, and gas. and wastewater services/laterals that will not be reused shall be abandoned at the main per the latest WGW utilities standards.

31. Utility vaults, transformers, utility cabinets, concrete bases, or other structures cannot be placed over existing water, gas, or wastewater mains/services. Maintain 1’ horizontal clear separation from the vault/cabinet/concrete base to existing utilities as found in the field. If there is a conflict with existing utilities, Cabinets/vaults/bases shall be relocated from the plan location as needed to meet field conditions. Trees may not be planted within 10 feet of existing water, gas, and wastewater mains/laterals/water services/or meters. New water or wastewater services/laterals/meters may not be installed within 10’ of existing trees. Maintain 10’ between new trees and new water and wastewater services/laterals/meters.

32. The applicant shall provide to the WGW Utility Engineering department a copy of the plans for fire system including all fire department's requirements prior to the actual service installation.

33. All utility installations shall be in accordance with the City of Palo Alto utility standards for water, gas, & wastewater.

Zero Waste

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34. Provide all three types of containers (recycle, compost, and landfill) as required by PAMC

5.20.108 and SB 1383 in the structure, including in the training room. If the scope of work involves installing internal and/or external refuse bins, then the following requirements apply. Refer to Palo Alto Municipal Code 5.20.108 - Requirements for owners or managers of multifamily properties and commercial premises. Any location where refuse bins will be installed shall have three bins - recycle (blue container), compost (green container), and garbage (black container). Show on the plans where the bins will be placed. The three types of refuse bins must be placed right next to each other. Provide cut sheets for the types of refuse bins (recycle, compost, and landfill) that will be used, any related millwork and colored signage. Locations where refuse bins may be located include common area such as entrances, lobbies, conference rooms, back of the house kitchen, cafés, breakrooms, and dining areas (if applicable). The only exceptions are restrooms, copy areas, and mother’s room.
a. Restrooms must have a green compost container for paper towels and an optional black landfill container if applicable. For wall mounted bins, signage must be placed on the bin.
b. Copy areas and mail areas must have either a recycle bin only or all three refuse receptacles (green compost, blue recycle, and black landfill container). c. Mother’s room must minimally have a green compost container and black landfill container.
d. Laboratory sinks need at least a compost container. A recycling container and a landfill container may also be required depending on waste generated in the lab.

35. If refuse bins will be placed inside a cabinet, then provide cut-sheets for the millwork. The front of the cabinet doors shall have a minimum of four inches in height worth of color- coding, extending the full width of the cabinet door. If there are openings on top of the millwork then the holes need be colored. Signage must also be provided on the containers and on front of the cabinet doors.

36. Signage must be color coded with photos or illustrations of commonly discarded items that are acceptable to place into the bin and words or text of items which are not acceptable to be placed into the bin. Please refer to PAMC 5.20.108 and the Internal Container Guide.

Examples of appropriate signage can be found in the Managing Zero Waste at Your Business Guide. Electronic copies of these signage can be found on the Zero Waste Palo Alto’s website, https://www.cityofpaloalto.org/Departments/Public-Works/Zero- Waste/What-Goes-Where/Toolkit#section-2 and hard copies can be requested from the waste hauler, GreenWaste of Palo Alto, (650) 493-4894.

Fire Department

37. Early detection fire alarm system shall be required for the proposed use. This shall be incorporated as part of the Use and Occupancy permit submittal and/or as part of building permit submittal for a tenant improvement.

Docusign Envelope ID: EFC9E493-D4F3-4C97-B647-A8989D5D8328 Item 9
Attachment C - June 9,
2025, Tentative Approval
Letter

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From: Raybould, Claire
To: herb
Cc: Switzer, Steven; Armer, Jennifer; Lait, Jonathan; City Mgr; Perez-Ibardolasa, Val Subject: RE: 400 Mitchell Lane [25PLN-00131]
Date: Tuesday, June 17, 2025 12:40:07 PM
Attachments: image003.png
image002.png
Good morning Herb,

Thank you for your e-mail. Although these two applications (25PLN-00131 and 25PLN-00006) happen to be proposed at the same property, these are two separate and distinct projects. Both projects have independent utility, meaning that approval of either is unrelated to and not dependent on the other. One is a request for a hazardous tree removal at the property, which is allowed if the required evidence is provided to support the conclusion that the tree is hazardous and with replacement planting consistent with the tree technical manual. The tree removal permit was recently submitted and is still under review. The second project, which the Director tentatively approved, is a conditional use permit for a change in use within the existing structure. Modifications to the exterior are not planned or necessary to accommodate the change in use. Therefore, removal of the tree is not a result of, or in any way related to, the change in use. Processing these separately or as one application would not change the finding that the project or projects are exempt from CEQA in accordance with CEQA Guidelines Section 15301. Accordingly, processing these applications separately does not constitute piecemealing under CEQA.

If you would like to discuss further please let me know. I have some availability at 2pm today and I’m happy to give you a call to discuss.

Regards,
Claire

Claire Raybould, AICP
Manager, Current Planning
Planning and Development Services Department
(650) 329-2116 | [email protected]
www.cityofpaloalto.org

Parcel Report
| Palo Alto Zoning Code | Online Permitting System | Planning Forms & Applications | Planning Applications Mapped

From: herb <[email protected]>
Sent: Monday, June 16, 2025 1:42 PM
To: Perez-Ibardolasa, Val <[email protected]> Item 9
Attachment E - Email
Correspondence Regarding
CEQA Compliance

Item 9: Staff Report
Pg.
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Cc: Switzer, Steven <[email protected]>; Raybould, Claire <[email protected]>; Armer, Jennifer <[email protected]>; Lait, Jonathan <[email protected]>; Council, City <[email protected]>; Clerk, City <[email protected]>
Subject: 400 Mitchell Lane [25PLN-00131]

CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

400 MITCHELL LANE [25PLN-00131] June 16, 2025 The application for the removal of two trees in the central courtyard of the building at 400 Mitchell Lane (Application No. 25PLN-00131) is a segment of the same California Environmental Quality Act (CEQA) project as the application f ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ !
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CGBANNERINDICATOR
400 MITCHELL LANE [25PLN-00131]

June 16, 2025

The application for the removal of two trees in the central courtyard of the building at 400 Mitchell Lane (Application No. 25PLN-00131) is a segment of the same California Environmental Quality Act (CEQA) project as the application for a Conditional Use Permit at the same address (Application No. 25PLN-00006).

CEQA regulations prohibit segmenting the review and approval of each segment separately.

CEQA Regulation 15378 says in relevant part:

15378. PROJECT

(a) “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.

(c) The term “project” refers to the activity which is being approved and which may be subject to several discretionary approvals by governmental agencies. The term “project” does not mean each separate governmental approval.

Therefore, a single environmental assessment and action are required for the two applications.

The current segmenting of the project violates CEQA.

Thank you for your consideration of these comments.

Herb Borock
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Attachment E - Email
Correspondence Regarding
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STANFORD UNIVERSITY

DEPARTMENT OF PROJECT MANAGEMENT

LAND, BUILDINGS AND REAL ESTATE

February 27, 2025
City of Palo Alto
Planning Department
250 Hamilton Avenue
Palo Alto, CA 94301

Subject: Conditional Use Permit Request for Stanford Doerr School of Sustainability Facility at 400 Mitchell Lane

Hello,
I am writing to formally request a Conditional Use Permit (CUP) to establish a facility for the Stanford Doerr School of Sustainability (SDSS) at 400 Mitchell Lane.

This property is located in the P-F Zoning District, which permits private university uses with a CUP . The proposed use of this property is integral to our mission of advancing sustainability through interdisciplinary research and education. With a large faculty and numerous departments, institutes, and programs, SDSS fosters collaboration in key areas related to Earth, climate, and society. Below are descriptions of the existing and proposed uses of the property, and information addressing how this project aligns with the necessary findings as stipulated by the City of Palo Alto.

Existing and Proposed Uses:

The property at 400 Mitchell Lane has an existing building that has been unoccupied for several years. It was previously used by American Red Cross and Urban Ministry of Palo Alto. Our proposal is to use this building as a facility for SDSS, which includes:

Field Education
SDSS enhances hands-on learning experiences for students, including various field trips and training courses. We support these activities by connecting students and instructors with necessary resources, offering a range of opportunities, both locally and abroad. This facility will include working and training space and field trip resources. Its proximity to public transportation will greatly facilitate student participation and access to necessary resources.

Geoscience Specimen Collections
In collaboration with faculty, SDSS manages a diverse collection of geological and paleo samples, supporting a wide range of courses. The facility will host a portion of those samples. This collection aids research and education by providing essential resources and promoting sustainable scientific practices.

The facility will provide the needed space for specimen management, staging, and preparation.

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STANFORD UNIVERSITY

DEPARTMENT OF PROJECT MANAGEMENT

LAND, BUILDINGS AND REAL ESTATE

Supporting Findings:

1. Public Health, Safety, General Welfare, or Convenience: The granting of this application will not be detrimental or injurious to the surrounding property or improvements. The proposed facility will repurpose an existing vacant building, thereby revitalizing the area and contributing positively to the community. Our activities will be conducted in a manner that ensures safety and convenience for both our students and nearby residents. The nature of the work, focused on sustainability and education, inherently supports public welfare by fostering environmentally responsible practices.

2. Consistency with the Palo Alto Comprehensive Plan and Title 18 (Zoning): The proposal aligns with the Palo Alto Comprehensive Plan’s emphasis on sustainable development and education.

The SDSS facility will promote interdisciplinary research and learning in key areas concerning Earth, climate, and society, directly contributing to the city's goals of sustainability and knowledge advancement. Additionally, as a private university use, this project is consistent with the purposes of Title 18 (Zoning), specifically within the P-F zoning district, where such uses are permitted with a CUP .

3. Compliance with Williamson Act Contract: In 1973, the City of Palo Alto and Stanford entered into a Williamson Act Contract, which has been attached to this application for reference. This site is included in that agreement. The proposed use of the structure for the Stanford Doerr School of Sustainability is consistent with the terms of the Williamson Act Contract and does not present any conflicts.

In summary, the establishment of the SDSS facility at 400 Mitchell Lane will support our mission and enhance the educational and research capabilities of our faculty and students. The project will bring life to a currently unoccupied building, integrate seamlessly with the community, and align with Palo Alto’s broader goals as outlined in the Comprehensive Plan.

We respectfully request the approval of this Conditional Use Permit to move forward with our plans.

Thank you for considering our application. Should you require any additional information or have further questions, please do not hesitate to contact me.

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STANFORD UNIVERSITY

DEPARTMENT OF PROJECT MANAGEMENT

LAND, BUILDINGS AND REAL ESTATE

Sincerely,

Stacey Yuen
Project Manager
Stanford University
[email protected]
650-454-6741
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In accordance with Government Code 65103.5, in addition to architectural drawings, a design professional or the owner of a copyright may submit a site plan or a massing diagram for posting online or for distribution to the public. The City of Palo Alto requires that such site plan or massing diagram be provided as a separate electronic file. If the design professional or the owner of the copyright elects not to provide a separate electronic file containing a site plan or massing diagram upon submission of architectural diagrams, they will be deemed to have granted permission for the City to share architectural drawings online and for distribution to the public.

For File Number, Date Received, Fees,
and Project Status please see Accela
(City Database)
bit.ly/PaloAltoACA
For general questions, please email
[email protected]
Application Request
Architectural Review
Conditional Use Permit / Amendment
Design Enhancement Exception
Historic Review
Home Improvement Exception
Temporary Use Permit
Transfer of Development Rights
Property Location
Address of Subject Property: ___________________________________________________________________________________________ Zone District: _____________________ Assessor’s Parcel Number: ________________________ Historic Category (if applicable): ____ ___________  Project Description Housing Development Project as Defined by the State: Yes No ___________________________________________________________________________________________________________________ Property Owner 
Name: _______________________________________________________ Email: _________________________________________ Address: _______________________________________________________ Phone 1: _________________________________________ City: ______________________________________ State: ________ Zip: __________ Phone 2: ____________________________ I hereby certify that I am the owner of record of the property described in Box #2 above and that I approve of the requested action herein. If this application(s) is subject to 100% cost recovery of planning costs, I understand that charges for staff time spent processing this application(s) will be based on the Policy and Procedures document provided to me. I understand that my initial deposit is an estimate of these charges and not a fee, and I agree to abide by the billing policy stated.

Signature of Owner: Date:

Applicant/Primary Contact/
Entitlement Recipient

Name: ___________________________
Address: _________________________
_________________________________
City: _____________________________
Zip Code: ______________ State: _____
Phone: ___________________________
Email: ____________________________
Name: _____________________________
Address: ___________________________
___________________________________
City: _______________________________
Zip Code: ______________ State: _______
Phone: _____________________________
Email: ______________________________
Architect  Engineer
Primary Contact If Different From
Applicant




Name: _____________________________
Address: ___________________________
___________________________________
City: _______________________________
Zip Code: ______________ State: _______
Phone: _____________________________
Email: ______________________________
Variance
Zone Change
Planned Community or Amendment
Other:
Individual Review
Preliminary AR Review
Council Prescreening
Coordinated Development (SOFA 1)
Site and Design Review
Subdivision
Planning Review Application
Department
of Planning & Development Services 250
Hamilton Avenue, Palo Alto, CA 94301
Appointments are required for all application submittals, please call (650) 329-2496 (ext. 6, option 2)
or email [email protected] to schedule
400 Mitchell Lane 94301
120-31-009
Tree Removal
Matthew Sesody
1250 Ames Rd
Milpitas
95035
CA
925-967-5063
[email protected]
Ramsey Shuayto
[email protected]
415 Broadway 3rd floor
Redwood City
Ca
94063
✔
3/19/25
Ramsey Shuayto
Digitally signed by Ramsey
Shuayto
Date: 2025.03.19 15:10:29 -07'00'
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Attachment G - Request for
Tree Removal Application
Letter (25PLN-00131)

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Revised: 7/23/22

DEPARTMENT OF PLANNING & DEVELOPMENT SERVICES

POLICY AND PROCEDURES FOR

APPLICATIONS SUBJECT TO COST RECOVERY
Planning and Development Services, in accordance with the Municipal Fee Schedule adopted by the City Council, has instituted a program of full and partial recovery fees for processing of the following types of applications.

Each of these types of applications may also require review by the Attorneys’ Office as well as the possible preparation of legal documents such as ordinances and/or resolutions, and either a deposit or fee for legal review will be collected:

Appeal Costs Exceeding Appeals Filing Fee
Architectural Review, Major Project
Administrative Extensions and Zoning Letters
Comprehensive Plan change
Development Agreement and Development
Agreement Annual Review
Environmental Documents
Legal Review for Additional Hearings
Major Architectural Review Projects

Major Subdivision
– Tentative Map and Subdivision Final Map
Mitigation Monitoring- EIR
Mitigation Monitoring – MND
Mills Act or Williamson Act – Establish or Withdraw
Planned Community
Pre-Screening
Site and Design
Transfers of Development Rights
Williamson Act – Establish or Withdraw
Wireless Applications
Zone Change
Our policy and procedures for recovering processing costs are as follows:
 A deposit in the amount indicated in the Municipal Fee Schedule will be accepted at the time the application is filed. If a project requires multiple entitlements, and any one of those entitlements is subject to cost recovery, as listed above, and the entitlements are being processed concurrently, then the entire processing of the project will be subject to cost recovery.  An accounting of staff time charged towards the deposit will be sent to the applicant or property owner.

If the amount incurred exceeds the amount of the deposit, an invoice will be generated. The bill will be sent by the City’s Administrative Services Department and shall be paid within 30 days, or legal interest will accrue. The City reserves the right to suspend application processing or delay issuance of a building permit due to nonpayment. The applicant and property owner are legally responsible for payment of all fees, regardless of whether an entitlement is granted.  In the event there are significant anticipated costs for outside consultants in excess of the amount deposited, a deposit for the full cost of the consultant work will be required at the time the consultant agreement is signed plus 25% for contract administration costs. In the event changes to the project result in additional costs, an additional deposit will be required at the time the consultant agreement is amended.  Following a final decision on the application and project file closure, a final accounting will be sent, along with either a bill if actual processing costs exceeding the amount on deposit, or a refund if the deposit amount exceeds actual processing costs.
 The applicant or property owner applicant will be billed for all time charged to the application. A current table of rates and explanation of charges is printed on the back of this form.

AGREED UPON BY:

Applicant/Owner Name: Signature: Date:

Ramsey Shuayto
3/19/25
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Letter (25PLN-00131)

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Hourly Rates for Deposit Based Fees/Contracts
Positions Effective 8/19/24
Administrative Assistant $ 199.72
Administrative Associate I $ 171.31
Administrative Associate II $ 188.76
Administrative Associate III $ 202.32
Arborist $ 231.19
Assistant Director Planning and Development Services $ 446.72 Associate Engineer $ 282.49
Associate Planner $ 247.09
Building/Planning Technician $ 198.69
Business Analyst $ 288.26
Chief Planning Official $ 397.22
Chief Transportation Official $ 346.85
City Legal Counsel $ 417.82
Code Enforcement Officer $ 242.07
Code Enforcement Lead $ 268.08
Coordinator Transit Management Systems $ 244.88
Director of Planning and Development Services $ 483.96 Engineer $ 229.88
Engineering Tech III $ 169.37
Landscape Architect/Park Planner $ 255.37
Management Analyst $ 257.27
Planning Manager $ 314.41
Planner $ 258.99
Principal Planner $ 306.54
Project Engineer $ 331.22
Senior Engineer $ 272.88
Senior Management Analyst $ 298.44
Senior Planner $ 298.69
Urban Forestry Manager $ 286.04
Building - Inspections and Investigations - Unclassified $ 356.01 Building - Additional Plan Review $ 276.04
Planning - Miscellaneous Plan Check & Inspection $ 278.57 Fire - Additional Hours Over Plan Review/Inspection $ 361.16 Public Works- Miscellaneous Plan Check $ 319.31
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Tree Removal Application
Letter (25PLN-00131)

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Revision Date: 02/23/2023
Questions?
Contact the City’s Watershed Protection Group
Email: [email protected]
Phone: (650) 329-2122
Part 1. PROJECT INFORMATION
Property Address: ___________________________ APN: _________________ Part 2. PCBs PROGRAM SCREENING CRITERIA
Part 3. PCBs PROGRAM COMPLIANCE
The response is “YES” to both 2(a) AND to 2(b). The project must meet Program requirements.

A. Sign and date the certification statement in Part 4 before submitting this application from.

B. The PCB
s Applicant Package must be submitted with the Deconstruction Building Permit Application. Details may be found at cityofpaloalto.org/pcbdeconprogram.

NOTE: Program requirements are considerable, and the required coordination with the Environmental Protection Agency and other agencies may take several months.

It is recommended that projects conduct this
step as early as possible prior to deconstruction (during the project planning process) to minimize delays.

Part 4. CERTIFICATION STATEMENT
I certify that the information provided in this form is, to the best of my knowledge and belief, true, accurate, and complete.

I further certify that I understand my responsibility for knowing and complying with all relevant laws and regulations related to reporting, abating, handling, and disposing of PCBs material and waste. I understand there are significant penalties for submitting false information. I will retain a copy of this form and the supporting documentation for at least 5 years.

Signature: Date:
(Property Owner/Agent/Legal Representative)
Print/Type:
(Property Owner/Agent/Legal Representative Name)
Signature: Date:
(Consultant Completing Application Form)
Print/Type:
(Consultant Completing Application Form)
All buildings to be deconstructed that meet BOTH criteria below must comply with Program requirements:

A. The building to be deconstructed is NOT a wood-framed, single-family residential, or two- family residential (duplex).

B. The building to be deconstructed was constructed or remodeled between January 1, 1950 and December 31, 1980.

YES If the answer to (a) AND (b) are both “YES,” then the project must meet Program requirements. CONTINUE TO PART 3.

NO If the answer to either (a) OR (b) is “NO,” then the project is exempt from PCB requirements.

STOP HERE and sign t
he certification statement (Part 4) and submit this form with planning application materials.

POLYCHLORINATED BIPHENYLS (PCBs ) IN PRIORITY BUILDING MATERIALS

DECONSTRUCTION PROGRAM PLANNING APPLICABILITY FORM

ALL PROJECTS MUST COMPLETE THIS WORKSHEET
3/6/26
Matthew Sesody
3/6/25
Matthew Sesody
400 Mitchell Ln
120-31-009
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Letter (25PLN-00131)

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October 24, 2024

400 Mitchell Lane
Palo Alto Ca 94301

2 Declining Bay Laurel Trees
There are 2 declining Laurus nobilis trees that are a concern to the client and I.

Observations

Tree #26 has a DBH of 24” and is approximately 20-
25’with a canopy spread of 10’ on either side. There is a large cavity at the base of the tree as well as cracked and peeling bark. At the time of inspection there were fungus fruiting bodies on one of the leaders. The tree has lost 30% of its canopy at the time of inspection.

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Attachment G - Request for Tree
Removal Application Letter (25PLN-
00131)

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Tree #27 has a DBH of 22” and a height of approximately 20-25’ with a canopy spread of 10’ on either side. The tree has signs of decay at the buttress root and a old fruiting body in the same area. There are multiple leaders on this tree and at the union there is decay. I was able to clean out the union and was able to easily slip my pocket knife 3” into the bark.

Summary

It is my professional opinion that these 2 trees are a hazard and should be removed. The size of the decay in tree #26 is a major concern as well as the decay fruiting bodies along a main leader.

Item 9
Attachment G - Request for Tree
Removal Application Letter (25PLN-
00131)

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Please reach out with any questions.

Thanks!

Matthew Sesody

Matthew Sesody
Monarch Tree Services
ISA Certified Arborist #WE-12524A
Mobile: 925-967-5063
Email: [email protected]

Item 9
Attachment G - Request for Tree
Removal Application Letter (25PLN-
00131)

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Item 9
Attachment G - Request for Tree
Removal Application Letter (25PLN-
00131)

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(5) Shade trees, typ.
(5) QE(3) CR
REMOVE FLAGPOLESAND CONCRETE BASEEXISTINGSHRUBS, TYP.

SHRUBS TO MATCHEXISTING ADJACENTTO BUILDING
(16) ACMOVE SIGN TO EDGEOF SIDEWALK(3) CR
(9) RIEXISTINGSHRUBS(2) HA
(11) AC
MULCH(See note #2)
MULCH(See note #2)
(26) CA
(3) SA
(3) SA(6) SC
01632'
400 MITCHELL / PLANTING PLANUniversity Architect/Campus Planning & Design Scale: 1/16"=1'-0"
Date: 09-19-2024

1.PROVIDE 3" LAYER OF MULCH FOR ALL NEW PLANT BEDS, MAINTAIN 4" OF CLEARANCE AROUNDALL CROWNS, STEMS AND TRUNKS OF PLANT MATERIAL TO MINIMIZE POTENTIAL DISEASES.2.MULCH TO BE ARBOR MULCH BY LYNGSO GARDEN MATERIALS, ph: (650) 364-1730 OR PSSI (ph:650-321-4236) IF AVAILABLE, OR APPROVED EQUAL.3.TEST EXISTING SOILS, AMEND SOIL IN ALL PLANTING AREAS ACCORDING TO SOILS REPORTRECOMMENDATIONS.4.INCORPORATE COMPOST AT A RATE OF AT LEAST FOUR CUBIC YARDS PER 1,000 SQUARE FEETTO A DEPTH OF SIX INCHES INTO LANDSCAPE AREA (UNLESS CONTRA-INDICATED BY A SOILTEST). REFER TO STANFORD FDG SPECIFICATIONS.5.IRRIGATION TO BE DESIGN BUILD. TREES SHOULD BE ON SEPARATE VALVES FROM SHRUBS,MINIMUM TWO BUBBLERS PER TREE. CONTRACTOR TO SUBMIT IRRIGATION DRAWINGS ANDPARTS LISTS FOR REVIEW AND APPROVAL BY STANFORD PRIOR TO INSTALLATION.6.PRIOR TO BEGINNING LANDSCAPE INSTALLATION, A PRELIMINARY SITE WALK SHOULD BE DONEWITH PROJECT MANAGER, LANDSCAPE CONTRACTOR, AND LANDSCAPE ARCHITECT TOIDENTIFY ANY SITE CONDITIONS NEEDING ATTENTION.7.PROTECT EXISTING TREES FROM INJURY AND COMPACTION. HAND DIG WITHIN ROOT ZONE ANDDO NOT CUT ROOTS OVER 2" DIAMETER. IF ANY ROOTS 2" DIAMETER OR LARGER AREENCOUNTERED DURING EXCAVATION NEAR ANY TREE, PLEASE CONTACT STANFORD PROJECTMANAGER.8.STANFORD FDG PLANTING SPECIFICATIONS GUIDELINES AND STANFORD STANDARD PLANTINGDETAILS ARE TO BE FOLLOWED. REFER TO SPECIFICATIONS DIVISION 32, SECTION 32 90 00.9.VERIFY LOCATIONS OF UTILITIES BY CALLING USA BEFORE DIGGING.10.REESTABLISH PROPER FINISHED GRADE PRIOR TO PLACING NEW PLANTS AND POSTCONSTRUCTION.11.PROVIDE MATCHING SPECIES AND FORMS FOR ALL HEDGE PLANTINGS. SPACE EQUALLY. DONOT PLANT WITHIN 2' OF NEW OR EXISTING TREE.12.CONTACT PROJECT MANAGER OR LANDSCAPE ARCHITECT IF PROBLEMS OCCUR WITH PLANTORDERS OR FOR CONSTRUCTION DIRECTION.13.CONTACT PROJECT MANAGER/LANDSCAPE ARCHITECT TO APPROVE ALL PLANT MATERIALSFOR VIGOR AND SPECIES BEFORE PLANTING.14.CONTACT PROJECT MANAGER/LANDSCAPE ARCHITECT FOR REVIEW AND APPROVAL OF PLANTPLACEMENT PRIOR TO INSTALLATION.15.IRRIGATION SYSTEM AS-BUILT PLAN, INCLUDING CONTROLLER, VALVES, LINES, AND HEADS, FORALL NEW PLANTINGS TO BE SUPPLIED TO STANFORD UPON PROJECT COMPLETION.16.COORDINATE TRIMMING OF EXISTING TREES AND SHRUBS WITH CERTIFIED ARBORIST ANDLANDSCAPE ARCHITECT.17.AS PART OF FINAL COMPLETION, ALL AREAS IMPACTED BY LANDSCAPE CONSTRUCTION TO BERESTORED TO ORIGINAL CONDITION, INCLUDING SOILS, PLANTS, IRRIGATIONS, PAVING, ANDOTHERS.18.PROVIDE 90 DAY PLANTING/IRRIGATION MAINTENANCE AND OVER ONE YEAR PLANT/TREEWARRANTY, TO BEGIN AFTER FINAL WALK THROUGH AND PROJECT ACCEPTANCE.

PLANTING NOTES

PLANTING LIST
SHRUBS
SCIENTIFIC NAMECOMMON NAMESIZESPACINGSYMBOLQTYTREES24" BoxAs ShownMesa OakQuercus engelmanniiQE5 Indian Hawthorn5 gal.36" O.C.15 gal.As ShownRay Hatman CeonathusCeanothus 'Ray Hatman'CR6Hoary ManzanitaArctostaphylos canescens var. canescens5 gal.36" O.C.27Heteromeles arbutifolia9Raphiolepsis indicaToyon2ACHARI15 gal.As ShownRock RoseCistus albidus5 gal.30" O.C.26CACleveland Sage5 gal.36" O.C.6Salvia clevelandiiSCWhite Sage5 gal.36" O.C.6Salvia alpianaSA Item 9
Attachment G - Request for Tree Removal
Application Letter (25PLN-00131)

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ATTACHMENT H
Project Plans
In order to reduce paper consumption, a limited number of hard copy project plans are provided to Council Members for their review. The same plans are available to the public, at all hours of the day, via the following online resources.

Directions to review Project plans online:

1. Go to: https://paloalto.buildingeye.com/planning

2. Search for “400 Mitchell Ln” and open record by clicking on the blue dot.

3. Review the record details on the left side, find Application Number: 25PLN-00006, and open the “more details” option.

4. Use the “Records Info” drop down menu and select “Attachments”

5. Open the attachment named “C3_400 Mitchell Lane _Plan.pdf” and dated 07/10/2025 to review the plan set.

Item 9
Attachment H - Project
Plans

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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: September 15, 2025
Report #:2509-5166
TITLE
Approval of a Director’s Interpretation Pursuant to PAMC Section 18.01.025 Concluding That Noncomplying Residential Gross Floor Area may not be Relocated Within a Structure; Denial of the Associated Appeal; Direction to Prepare a Future Code Amendment for Administrative De Minimis Exceptions to the Zoning Code; CEQA: Exempt Pursuant to CEQA Guidelines Section 15061(b)(3)

RECOMMENDATION
Staff recommends that the City Council:

1. Uphold the Director of Planning and Development Services’ formal interpretation dated May 8, 2025, concluding that noncomplying residential gross floor area may not be removed and restored elsewhere on the property pursuant to Palo Alto Municipal Code (PAMC) Chapter 18.70, denying the associated appeal; and,

2. Direct staff to prepare a text amendment authorizing the Director of Planning and Development Services to consider or approve de minimis exceptions from noncomplying facility regulations and similar minor adjustments that are not impactful to adjacent properties or public realm.

BACKGROUND
On June 16, 2025, City Council members Burt, Lu, and Lythcott-Haims pulled the subject report from the consent calendar to schedule the subject hearing.

Attachment A includes the previous report containing staff’s analysis and related attachments.

Attachment B includes additional correspondence from the appellant subsequent to the Council’s action to pull the item. This correspondence appears to generally restate the appellant’s statement from the June 16, 2025 item, but adds an expanded introduction, an executive summary, a new footnote, and several references to a September 2016 email Item 10
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announcing a change in staff implementation of Chapter 18.70. The additional material does not affect staff’s analysis.

FISCAL/RESOURCE IMPACT
The recommendation in this report is not anticipated to have a significant fiscal or budgetary impact. Work related to the recommended text amendment will be folded into other work as able and can reasonably be absorbed within the department budget and resources.

STAKEHOLDER ENGAGEMENT
The interpretation was posted on the City’s website in accordance with PAMC Section

18.01.025. Notice was provided to known interested parties. One formal appeal was submitted.

ENVIRONMENTAL REVIEW
The City Council’s action is categorically exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15061(b)(3), the common sense exemption, because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

ATTACHMENTS
Attachment A: Council Report with Attachments, Dated June 16, 2025 Attachment B: Additional Appellant Correspondence, Dated August 3, 2025 APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 10
Item 10 Staff Report

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CITY OF PALO ALTO

CITY COUNCIL
Monday, June 16, 2025
Council Chambers & Hybrid
5:30 PM

Agenda Item

12. Approval of a Director’s Interpretation Pursuant to PAMC Section 18.01.025 Concluding That Noncomplying Residential Gross Floor Area may not be Relocated Within a Structure; Denial of the Associated Appeal; Direction to Prepare a Future Code Amendment for Administrative De Minimis Exceptions to the Zoning Code; CEQA:

Exempt Pursuant to CEQA Guidelines Section 15061(b)(3)
Item 10
Attachment A - Council
Report with Attachments,
Dated June 16, 2025

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: June 16, 2025
Report #:2505-4747
TITLE
Approval of a Director’s Interpretation Pursuant to PAMC Section 18.01.025 Concluding That Noncomplying Residential Gross Floor Area may not be Relocated Within a Structure; Denial of the Associated Appeal; Direction to Prepare a Future Code Amendment for Administrative De Minimis Exceptions to the Zoning Code; CEQA: Exempt Pursuant to CEQA Guidelines Section 15061(b)(3)

RECOMMENDATION
Staff recommends that the City Council:

EXECUTIVE SUMMARY
On May 8, 2025, the Director of Planning and Development Services issued a formal interpretation of PAMC Chapter 18.70, concluding that noncomplying gross floor area (GFA) may not be removed and replaced elsewhere on a site, even where total GFA is not increased.

This interpretation was prompted by a minor remodel of a single-family home that remains over the district’s GFA limit. A timely appeal challenged the interpretation, arguing that the project does not intensify noncompliance and should be allowed.

Staff believe that the Director‘s interpretation reflects the most reasonable and consistent application of the Municipal Code and that it supports the broader policy goal of reducing Item 10
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Dated June 16, 2025

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noncomplying conditions over time. While the proposal in the appellant‘s case is minor, permitting it would render portions of the code meaningless and could create a precedent for larger changes inconsistent with the Code’s purpose. Staff recommend that the City Council deny the appeal, uphold the interpretation, and direct staff to prepare a future code amendment to allow administrative de minimis exceptions for minor residential modifications that do not impact neighbors or the public realm.

BACKGROUND
PAMC Section 18.01.025 authorizes the Director of Planning and Development Services to interpret Titles 16, 18, and 21 of the Municipal Code. Formal interpretations are posted publicly and may be appealed within 14 calendar days under Section 18.77.070.

On May 8, 2025, the Director issued an interpretation concluding that PAMC Chapter 18.70 prohibits the relocation, or removal and replacement, of noncomplying GFA, see Attachment A.

Noncomplying GFA arises when a structure was legally constructed under earlier zoning rules but exceeds current GFA limits due to annexation or subsequent code amendments. The interpretation affirms that once a noncomplying feature is voluntarily removed, it may not be restored elsewhere on the site, except in a conforming manner.

The proposed project that prompted the interpretation involves a single-family residence located in the R-1 zone in a previously unincorporated area of the Barron Park neighborhood.

The existing structure exceeds the maximum allowable GFA for the district, rendering it noncomplying. Any alterations are therefore evaluated in accordance with Chapter 18.70, which governs maintenance, enlargement, and replacement of noncomplying facilities. In this case, the project proposes a residential remodel modifying a second-floor loft by removing stair access such that it no longer qualifies as GFA. No exterior modifications are proposed for this portion of the project. Concurrently, the applicant proposes to remodel, expand and enclose new floor with new exterior walls toward the side and rear of the residence on the first floor.

The amount of enclosed space would then count as GFA, but would not exceed the GFA removed from the loft and would be located at the side and rear of the residence.

For the reasons set forth in Attachment A, the Director determined that this relocation of noncomplying GFA constituted a prohibited action under both PAMC 18.70.080 and 18.70.100.

A timely appeal was submitted on May 14, 2025.

Appeal Procedures
This item appears on the Consent Calendar. If it is not pulled by three members of the City Council, the City Council’s action to deny the appeal and uphold the interpretation will be final upon adoption of the Consent Calendar. If the item is pulled, it will be agendized for a future noticed public hearing.

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Report with Attachments,
Dated June 16, 2025

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Appellant’s Position
The appellant’s statements are provided in Attachment B and summarized below.

The appellant argues that the Director’s interpretation improperly applies PAMC Section

18.70.100, which they assert only governs scenarios involving damage or destruction, not voluntary modifications. They contend that their project is instead governed by Section

18.70.080, which allows improvements to noncomplying structures that do not increase the degree or manner of noncompliance.

The appellant further disputes the use of the term “relocation,” arguing it introduces a new standard not supported by the Code. The appellant asserts that moving floor area from one location to another within the same structure does not alter the manner of noncompliance, particularly if the total GFA does not increase.

The appellant further argues that the interpretation functions as a de facto code amendment, effectively restricting common remodels without formal legislative action. They raise concerns about fairness and procedural overreach and cite principles of statutory interpretation, asserting that municipal ordinances should be interpreted according to their plain meaning. The appellant argues that the City’s interpretation would not be entitled to any deference from a court and that in the event the matter resulted in litigation, the City would expose itself to liability for attorneys’ fees.

ANALYSIS
The Director’s interpretation is grounded in the plain reading and combined intent of PAMC Sections 18.70.080, 18.70.090, and 18.70.100. These provisions set forth the regulatory framework to implement the general application of the nonconforming facilities chapter of the code and allow the continued use and maintenance of noncomplying facilities while limiting future modifications of such facilities. These three sections serve related but distinct functions in the regulation of noncomplying structures and should be read together to understand their cumulative policy intent.

Section 18.70.080 governs enlargement to noncomplying structures and prohibits changes that increase noncompliance. It further clarifies that it does not prohibit changes that do not affect the particular degree or manner of noncompliance. Section 18.70.090 addresses maintenance and repair, including the limits of allowable structural alterations. Section 18.70.100 regulates the replacement or reconstruction of noncomplying facilities following their partial or full removal. Together, they reinforce a consistent policy that disfavors reestablishing nonconforming conditions once removed or altered. More specifically:

Section 18.70.080 states:
a) Except as specifically permitted by subsections (b) and (c) hereof or by Section 18.12.050(a), no enlargement, expansion, or other addition or Item 10
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improvement to a noncomplying facility shall be permitted which increases the noncompliance. This section shall not be construed to prohibit enlargement or improvement of a facility, otherwise permitted by this title, which does not affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title.
b) …. (not applicable to residential properties)
The appellant asserts that their proposal is permitted by PAMC Section 18.17.080 because it does not affect the particular degree or manner of non-compliance. In essence, the appellant argues that a change in the location of a noncomplying feature cannot be considered a change in the manner of noncompliance because the word “manner” refers only to the general type of noncompliance (e.g. height, setback, or GFA) and cannot refer to “location.” The appellant’s position, however, eliminates the word “particular” from the code. The word “particular” adds a level of specificity to the requisite analysis. The “particular manner” of noncompliance is reasonably understood to mean the specific way in which a structure is noncomplying, which would include location. Rather than introducing new code language, as suggested by the appellant, the Director’s interpretation reflects a reasonable reading of the code that gives effect to all of its provisions.

While the proposal at issue is a relatively minor change to the rear and side of the house, the code must be applied consistently across all residential project types. If the appellant’s reasoning were followed, a one-story home that exceeds the maximum GFA limit could demolish a large portion of the existing structure and rebuild the same amount of floor area as a second story. Though a second story may otherwise be allowed, this reconfiguration would significantly alter the form, massing, and presentation of the noncomplying structure, an outcome that meaningfully affects the manner in which the facility does not comply.

Rather, this provision is intended to distinguish between improvements that preserve the nature and location of a nonconformity and those that materially alter it. For example, a home with a legal noncomplying front yard setback may be permitted to construct a second story or expand toward the rear of the property, so long as the new work complies with all applicable development standards and does not intensify or extend the existing noncompliance. In that scenario, the front yard setback remains unchanged and the particular degree and manner of noncompliance are not affected.

Section 18.70.090 states:
a) Normal and routine maintenance of a noncomplying facility shall be permitted for the purpose of preserving its existing condition, retarding or eliminating wear and tear or physical depreciation, or complying with the requirements of law.

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b) Incidental alterations to a noncomplying facility shall be permitted, provided such alterations do not increase the degree of noncompliance, or otherwise increase the discrepancy between existing conditions and the requirements of this title.
c) Structural alterations to a noncomplying facility shall be permitted when necessary to comply with the requirements of law, or to accommodate a conforming use when such alterations do not increase the degree of noncompliance, or otherwise increase the discrepancy between existing conditions and requirements of this title.

This section governs routine maintenance and repair of noncomplying structures. While it permits work necessary to preserve the structure’s safe and sanitary condition, it does not allow for modifications that expand or reconfigure the noncompliance. Because the proposed project involves removing existing GFA and enclosing a separate area with new exterior walls, it constitutes a reconfiguration, not routine repair, and is therefore outside the scope of Section

18.70.090.

Section 18.70.100 states:

A noncomplying facility which is damaged or destroyed by any means except ordinary wear and tear and depreciation may be reconstructed only as a complying facility, except as follows:
a) When the damage or destruction of a noncomplying facility affects only a portion of the facility that did not constitute or contribute to the noncompliance, said portion may be repaired or reconstructed to its previous configuration.
b) When the damage or destruction of a noncomplying facility affects a portion of the facility that constituted or contributed to the noncompliance, any replacement or reconstruction to such damaged portion shall be accomplished in such manner as not to reinstate the noncompliance or degree of noncompliance caused by the destroyed or damaged portion of the facility, and otherwise in full compliance with this title; however, if the cost to replace or reconstruct the noncomplying portion of the facility to its previous configuration does not exceed fifty percent of the total cost to replace or reconstruct the facility in conformance with this subsection, then the damaged noncomplying portion may be replaced or reconstructed to its previous configuration. In no event shall such replacement or construction create, cause, or increase any noncompliance with the requirements of this title. c) …. (not applicable to residentially zoned properties) Item 10
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d) Notwithstanding subsections (a), (b) and (c) hereof, a noncomplying facility housing a conforming use in the R-1 and RE zones, which when built was a complying facility, which is damaged or destroyed by non- willful means (i.e., acts of God) shall be permitted to be replaced, on the same site, and in its previous configuration, without necessity to comply with the current site development regulations, provided that any such replacement shall not result in increased floor area, height, length or any other increase in the size of the facility.
e) Except as otherwise provided in this section with regard to replacement or reconstruction of a portion of a facility to its previous noncomplying condition, all reconstruction shall be subject to all applicable laws, regulations, and procedures otherwise governing construction on the site at the time said construction is undertaken.

The appellant acknowledges that that PAMC Section 18.70.100 sensibly requires that if a noncomplying structure is deliberately demolished and subsequently replaced or reconstructed, that such replacement or reconstruction may not reinstate the noncompliance.

The appellant argues this section is inapplicable to their project, however, because they do not propose to “replace” or “reconstruct” the GFA that is being removed. The appellant relies on the Merriam-Webster dictionary to assert that the term “replace” does not encompass the “relocation” of GFA from one place to another. In fact, the Merriam-Webster definition of “replace,” also includes “to take the place of especially as a substitute or successor,” and “to put something new in the place of.” Under both of these ordinary dictionary definitions, the appellants proposal to remove GFA from a second story and add GFA to the ground floor could reasonably be considered “replacement.” Again, the Director’s interpretation does not introduce the term ‘relocation’ into the code, but instead relies on the ordinary meaning of the terms already present.

Reconstructing noncomplying GFA elsewhere on the site, regardless of whether the total GFA increases, constitutes an effort to replicate or replace the prior noncompliance in a new location. The provision makes clear that unless narrowly exempted, such features may not be rebuilt. This aligns with the broader purpose of Chapter 18.70 to phase out noncomplying conditions over time. The appellant’s interpretation is not only contrary to this purpose, but it leads to an absurd result: there is no rational explanation for why the code would prohibit reconstruction of a noncomplying feature once removed, while permitting the same noncompliance to be reintroduced elsewhere as a new improvement.

Finally, the appellant asserts that their project does not involve the relocation of GFA but instead involves the demolition of GFA on the upper floor and a separate enlargement on the ground floor. This argument attempts to conceptually separate the removal and addition components of the project. However, if treated independently, the ground floor expansion would constitute a prohibited increase in noncompliance. The appellant’s position relies on Item 10
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linking the two elements to claim there is no net change in the degree of noncompliance, an approach that selectively combines and separates aspects of the project depending on the desired outcome.

The City Council’s determination will be entitled to significant deference from a court The appellant incorrectly asserts that the City’s interpretation of its own municipal code is entitled to no deference. While this may be true when the City has interpreted a statute or regulation promulgated by the State or another agency, it is quite the opposite when the City is interpreting its own codes. A city’s interpretation of the meaning and scope of its own regulations is entitled to deference (Harrington v. City of Davis (2017) 16 Cal.App.5th 420, 434-

45.) Greater deference is particularly appropriate where, as here, there are “indications of careful consideration by senior agency officials.” (Ibid.) Zoning Code Amendment
While the Director’s interpretation is a supportable application of the code and consistent with its text and policy objectives under PAMC Section 18.01.025, staff acknowledge that the proposed project involves a relatively minor change that is unlikely to have a noticeable impact on neighbors or the broader community. The issue raised in this case is not about the scale or character of the change itself, but how to apply the existing language of the Municipal Code consistently.

Because the plain reading of PAMC Chapter 18.70 does not allow for the reconfiguration or reinstatement of noncomplying GFA, staff could not identify a path forward that would permit this type of project without contorting the code and potentially setting a precedent for more significant and impactful modifications.

To address similar situations and introduce flexibility for minor residential projects, staff recommend that the City Council direct the preparation of a future amendment to the Municipal Code that would authorize the Director of Planning and Development Services to consider or approve de minimis deviations from the code, offering an alternative to strict adherence for minor cases. Such a provision would allow small-scale projects to proceed where the resulting change is clearly not consequential to adjacent properties or the broader community but may technically conflict with zoning regulations. The language and scope of the proposed amendment would be reviewed with the Planning and Transportation Commission and presented to the City Council for consideration at a future date. The timeline for this work has not been established and would likely be coordinated with other upcoming zoning code updates.

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STAKEHOLDER ENGAGEMENT
The interpretation was posted on the City’s website in accordance with PAMC Section

18.01.025. Notice was provided to known interested parties. One formal appeal was submitted.

ATTACHMENTS
Attachment A: Director's Interpretation of PAMC Chapter 19.70 Attachment B: Appeal Statement
APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 10
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PLANNING & DEVELOPMENT SERVICES

250 Hamilton Avenue, 5th Floor
Palo Alto, CA 94301
(650) 329-2441

CITY OF PALO ALTO | 250 HAMILTON AVENUE, PALO ALTO, CA. 94301 | 650-329-2441

DATE: May 8, 2025
TO: Planning & Development Services Staff and Interested Community Members FROM: Jonathan Lait, Director
SUBJECT: Director’s Interpretation Regarding Relocation of Noncomplying Residential Gross Floor Area Under PAMC Chapter 18.70

Authority
Palo Alto Municipal Code (PAMC) Section 18.01.025 authorizes the Director of Planning and Development Services to interpret provisions of Titles 16, 18, and 21 of the Palo Alto Municipal Code.

When warranted, formal written interpretations may be issued and posted on the City’s website. Such decisions become effective fourteen days after posting unless appealed in accordance with PAMC Section 18.77.070.

Director’s Interpretation
Where an existing residential building exceeds the allowable gross floor area (GFA) PAMC Chapter 18.70 prohibits the relocation of non-complying floor area from one location to another.

Applicable Code Section(s)
• 18.70.080: Noncomplying Facility – Enlargement
• 18.70.090: Noncomplying facility – Maintenance and repair • 18.70.100: Noncomplying facility – Replacement
Discussion
Palo Alto’s zoning code limits the allowable GFA on residential properties to regulate bulk, scale, and neighborhood compatibility. Some structures that comply with development standards at the time they are constructed may become noncomplying as a result of a change in the applicable regulations (e.g. rezoning or annexation). PAMC Chapter 18.70 sets forth the rules under which such noncomplying facilities may be maintained. Relocation of noncomplying GFA may be independently prohibited by PAMC Sections 18.70.080 and 18.70.100; in addition, relocated GFA does not fall within the scope of permitted alterations under PAMC Section 18.70.090.

PAMC Section 18.70.080: Noncomplying Facility – Enlargement Section 18.70.080, subd. (a), expressly prohibits any improvement to a noncomplying facility that increases the noncompliance. If further clarifies that it does not prohibit improvement of a facility, Docusign Envelope ID: 3A798A6F-1F4E-4D19-8275-72D1C645C1F0 Item 10
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Dated June 16, 2025

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otherwise permitted by Title 18 (the zoning code), which does not affect the particular degree or manner of the noncompliance.

Taken holistically, staff interprets this section to prohibit an improvement that does affect the particular degree or manner of the noncompliance. For example, if a structure is noncomplying because a parapet at the rear of the property exceeds the maximum height by five feet, it would not be permitted to demolish the parapet and reconstruct it identically at the front of the property instead. Even if the new parapet would not increase the amount by which the structure exceeds the maximum height, the change in location would affect the particular manner of noncompliance. Similarly, the relocation of non-complying floor area would violate this prohibition.

Section 18.70.080 is intended to allow the improvement of a noncomplying facility in a manner unrelated to the particular degree or manner of noncompliance. For example, it would allow a structure that is non-complying for height to receive additional GFA provided the new area otherwise complied with the zoning code (e.g. setbacks, lot coverage and floor area limitations, height).

PAMC Section 18.70.090: Noncomplying Facility – Maintenance and repair Section 18.70.090 allows for the maintenance and repair of a noncomplying facility. It allows for incidental alterations that do not increase the degree of noncompliance. It also allows for structural alterations that do not increase the degree of noncompliance, so long as they are “necessary to comply with the requirements of law or to accommodate a conforming use.” Incidental alterations are defined in PAMC Section 18.04.030 to mean alterations to the interior of a building that do not increase its structural strength; alterations to mechanical, electrical and plumbing systems; and changes to fenestrations that do not increase the building’s structural strength. Structural alterations are defined as any other alteration.

Staff interprets this section to allow structural alterations only when necessary to comply with the requirements of law (e.g. building code) or when necessary to accommodate a change to a conforming use (e.g. to provide sufficient egress for a residential use). Absent a change to a conforming use, structural alterations would only be permitted to comply with requirements of law. An alternative interpretation would leave the phrase “necessary to accommodate a conforming use” without any meaning and collapse the distinction between the allowances for incidental and structural alterations in Section 18.70.090.

Section 18.70.090 is intended to allow incidental maintenance and repair of noncomplying facilities in a manner that does not increase noncompliance. It is less permissive regarding structural alterations. The relocation of noncomplying floor area will typically involve structural alterations; in the absence of a change to a conforming use, such alterations are only permitted to the extent necessary to comply with law.

PAMC Section 18.70.100: Noncomplying Facility – Replacement Section 18.70.100 governs the reconstruction of a noncomplying facility that is damaged or destroyed by any means other than ordinary wear and tear. This includes willful damage and destruction as part of a Docusign Envelope ID: 3A798A6F-1F4E-4D19-8275-72D1C645C1F0 Item 10
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construction project as well as non-willful means.1 The general rule expressed this section is that a damaged or destroyed noncomplying facility may only be reconstructed as a complying facility unless an enumerated exception applies.

Proposed relocation of noncomplying GFA falls under subdivision (b), which states that a portion of a facility that contributes to the noncompliance, if damaged or destroyed, may only be replaced or reconstructed in a manner that does not reinstate the noncompliance or the degree of noncompliance.2 Staff interprets the term “replacement” to include replacing demolished GFA in the same or a different location. This section therefore prohibits the removal of floor area that was willfully destroyed and contributed to a noncomplying GFA condition, as well as its reinstatement – whether in whole or in part – at any location within the structure. For example, a project that removes existing GFA and proposes to reconstruct that floor area in a location that requires demolition and reconstruction of exterior building walls to accommodate the removed GFA would involve reconstruction that constitutes a reinstatement of the noncompliance.

The interpretations provided herein are the only ones that give coherent and internally consistent meaning to each of the code sections discussed. In particular, if either section 18.70.080(a) or section

18.70.090(c) is interpreted to allow the relocation of noncomplying floor area, it is unclear what meaning section 18.70.100(b) could have. These interpretations are also consistent with prior direction from the City Council regarding interpretation of similar provisions in PAMC section 18.18.120; in 2015, the City Council directed that the noncomplying facility provision in that section should not be interpreted to allow the relocation of noncomplying floor area in the CD district.

_____________________________
Jonathan Lait, Director
Planning and Development Services
Attachment: Applicable Municipal Code Sections

Posted on Website: May 8, 2025
Appeal Deadline: May 22, 2025

1 An alternative interpretation that applies section 18.70.100 only to non -willful damage or destruction would render subdivision (d) unnecessary, as that section provides a different rule for noncomplying facilities that are damaged and destroyed by non-willful means.
2 Subdivision (b) also provides an exception where the cost to replace or reconstruct the facility in compliance would be at least double the cost to replace or reconstruct the facility to its previous configuration; this analysis assumes that the exception is not triggered.

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18.70.080 Noncomplying facility - Enlargement.
(a) Except as specifically permitted by subsections (b) and (c) hereof or by Section 18.12.050(a), no enlargement, expansion, or other addition or improvement to a noncomplying facility shall be permitted which increases the noncompliance. This section shall not be construed to prohibit enlargement or improvement of a facility, otherwise permitted by this title, which does not affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title. (b) Except in areas designated as special study areas, the director of planning and development services may permit minor additions of floor area to noncomplying facilities in the commercial CC, CS and CN zones and in the industrial MOR, ROLM, RP and GM districts, subject to applicable site development regulations, for purposes of on-site employee amenities, resource conservation, or code compliance, upon the determination that such minor additions will not, of themselves, generate substantial additional employment. Such additions may include, but not be limited to, the following:
(1) Area designed and used solely for providing on-site services to employees of the facility, such as recreational facilities, credit unions, cafeterias and day care facilities; (2) Area designated for resource conservation, such as trash compactors, recycling and thermal storage facilities; and
(3) Area designed and required for hazardous materials storage facilities, handicapped access, and seismic upgrades.
(Ord. 5494 § 3, 2020: Ord. 5381 § 7, 2016: Ord. 5373 § 22 (part), 2016: Ord. 3890 § 20, 1989: Ord. 3683 § 18, 1986: Ord. 3048 (part), 1978)

18.70.090 Noncomplying facility - Maintenance and repair. (a) Normal and routine maintenance of a noncomplying facility shall be permitted for the purpose of preserving its existing condition, retarding or eliminating wear and tear or physical depreciation, or complying with the requirements of law.
(b) Incidental alterations to a noncomplying facility shall be permitted, provided such alterations do not increase the degree of noncompliance, or otherwise increase the discrepancy between existing conditions and the requirements of this title.
(c) Structural alterations to a noncomplying facility shall be permitted when necessary to comply with the requirements of law, or to accommodate a conforming use when such alterations do not increase the degree of noncompliance, or otherwise increase the discrepancy between existing conditions and requirements of this title.
(Ord. 5381 § 7, 2016: Ord. 3683 § 17, 1986: Ord. 3048 (part), 1978)

18.70.100 Noncomplying facility - Replacement.

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(b) When the damage or destruction of a noncomplying facility affects a portion of the facility that constituted or contributed to the noncompliance, any replacement or reconstruction to such damaged portion shall be accomplished in such manner as not to reinstate the noncompliance or degree of noncompliance caused by the destroyed or damaged portion of the facility, and otherwise in full compliance with this title; however, if the cost to replace or reconstruct the noncomplying portion of the facility to its previous configuration does not exceed fifty percent of the total cost to replace or reconstruct the facility in conformance with this subsection, then the damaged noncomplying portion may be replaced or reconstructed to its previous configuration. In no event shall such replacement or construction create, cause, or increase any noncompliance with the requirements of this title. (c) Notwithstanding subsections (a) and (b) hereof, a noncomplying facility in the commercial CS, CN and CC zones and the industrial MOR, ROLM, RP and GM districts, except for those areas designated as special study areas, existing on August 1, 1989, which when built was a complying facility, shall be permitted to be remodeled, improved or replaced in accordance with applicable site development regulations other than floor area ratio, provided that any such remodeling, improvement or replacement shall not result in increased floor area.
(d) Notwithstanding subsections (a), (b) and (c) hereof, a noncomplying facility housing a conforming use in the R-1 and RE zones, which when built was a complying facility, which is damaged or destroyed by non-willful means (i.e., acts of God) shall be permitted to be replaced, on the same site, and in its previous configuration, without necessity to comply with the current site development regulations, provided that any such replacement shall not result in increased floor area, height, length or any other increase in the size of the facility.
(e) Except as otherwise provided in this section with regard to replacement or reconstruction of a portion of a facility to its previous noncomplying condition, all reconstruction shall be subject to all applicable laws, regulations, and procedures otherwise governing construction on the site at the time said construction is undertaken.
(Ord. 5381 § 7, 2016: Ord. 4102 § 1 (part), 1992: Ord. 4016 § 46, 1991: Ord. 3905 § 18, 1989: Ord. 3890 § 21, 1989: Ord. 3048 (part), 1978)
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1 Subject – Appeal of Director’s Application of PAMC § 18.70.100 to Project Concerning 3886 Magnolia Drive, #25BLD-00025

Dear Mayor Lauing and Members of the City Council:

My wife and I hereby appeal the Director’s May 8, 2025, Interpretation Regarding Relocation of Noncomplying Residential Gross Floor Area Under PAMC Chapter 18.70 (the “Determination”).

The Planning Department, on the sole basis of the Determination, has rejected our application for a small remodel of our home in Barron Park which was built in 1948, long prior to Palo Alto’s annexure of our section of the City of Palo Alto.

Background on Our Proposed Project

Our home is currently two stories (although the second story is quite small and is essentially a permitted loft space). Our project is designed to convert our home fully into a single-floor home (in that respect, it is very much unlike the many second story additions routinely processed by the Planning Department). Essentially, the aim of the project is to create a closet in the room that we are using as our primary bedroom and relocate some utilities, such as the laundry and additional kitchen and cleaning storage, to a permitted rumpus room and provide interior access to that room from our existing kitchen.

Currently, we maintain a closet in an upstairs, permitted loft area which entails navigating a steep and narrow staircase (the “Unsafe Permitted Loft Area”). The project does not enlarge the building envelope, add floor area, or replace any space that is “damaged or destroyed.” It removes from FAR the Unsafe Permitted Loft Area and does not “replace” or “reconstruct” that space (i.e., there will no longer be an upstairs loft area in my home and my home will be a single floor structure).

Despite the project’s very modest scope (which is wholly consistent with the City’s goals of enabling aging in place), the Director has arbitrarily and erroneously invoked Palo Alto Municipal Code § 18.70.100 to deny the application. By its express and unambiguous terms, that provision applies when property is “damaged or destroyed” and that portion is “replaced” or “reconstructed.” We are, in fact, not “replacing” or “reconstructing” the Unsafe Permitted Loft Area and thus § 18.70.100 is inapplicable on its face. Instead, § 18.70.080 applies and our project was carefully designed to comply with that provision.

Analysis

Relevant Law and the Standard of Review

When interpreting an ordinance, courts apply the same rules of interpretation applicable to statutes. See Save Our Heritage Organisation v. City of San Diego (2015) 237 Cal.App.4th 163, 174, 187 Cal.Rptr.3d 754.). Courts first examine the language of the ordinance, giving the words their usual and ordinary meaning, in the context of the ordinance as a whole and its purpose. See Audio Visual Services Group, Inc. v. Super. Ct., 182 Cal. Rptr. 3d 748, 754 (Cal. App. 2d Dist. 2015). In addition, courts “apply common sense to the language at hand” and interpret a Item 10
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2 provision in a manner that makes “it workable and reasonable” and avoids an absurd result.

Wasatch Property Management v. Degrate (2005) 35 Cal.4th 1111, 1122, 29 Cal.Rptr.3d 262, 112 P.3d 647.

If we are forced to proceed with an appeal to Santa Clara Superior Court, the City would face the prospect of a significant award of attorneys’ fee award as we would be seeking to vindicate the public’s interest in the proper interpretation of the Palo Alto Municipal Code. See CCP § 1858 (“Upon motion, a court may award attorneys’ fees to a successful party against one or more opposing parties in any action which has resulted in the enforcement of an important right affecting the public interest …”). Also, in litigation the Planning Department would be subject to discovery aimed at determining whether it is invoking Section 100 even-handedly to small remodels like ours (this issue is also the subject of a pending request under the California Public Records Act and I respectfully reserve the right to update the Council once the City has produced adequate records in response to our request).
1 The Director’s Determination

The Director largely bases his rejection of our plan on Section 18.70.100. 2 That section governs
reconstruction of a residential structure that already exceeds current zoning limits and is damaged or deliberately demolished, and it generally (and sensibly) requires that if that facility is “replac[ed]” or “reconstruct[ed] that such replacement or reconstruction not reinstate the noncompliance. The full text of that provision is appended below with relevant highlighting.

1 Indeed, if Section 100 applies to our small project the Planning Department would necessarily have to reject every single remodel of any noncomplying facility (action which would invite a cascade of litigation centered on unlawful taking of property). Judging by the number of projects that are ongoing in Barron Park every day of the week, not even the Planning Department is taking such a restrictive view of Section 100. Indeed, and to its credit, the Planning Department attempted to get some clarity around the meaning and scope of Section 100 back in 2015 but that effort did not gain traction with the members of the City Council at that time. See City Council Staff Report # 6333. We suspect that the Planning Department would benefit from and even appreciate this Council’s guidance on this important issue.

2 Until the Determination was issued on May 8, 2025, the Director entirely rested his rejection on Section 100. In the Determination, he attempts to buttress the rejection with a new claim that we do not satisfy Section 80. This late argument clearly suggests that the Director lacks confidence in his application of Section 100. In any event, the Director’s belated interpretation of Section 80 suffers from the same type of flaw that infects his analysis of Section 100, namely that he inserts terms that are not found in the text of the Code (see infra at 5).

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3 We are clearly not “replacing” or “reconstructing” the Unsafe Permitted Loft Area. We are demolishing it altogether and not replacing or reconstructing it. The Director would of course be correct if we were altering the Unsafe Permitted Loft Area and keeping it as loft space. But that is not our plan.

Since we are not replacing or reconstructing the Unsafe Permitted Loft Area, Section 100 is inapplicable because it only governs replacing or reconstructing space (see highlighting below).

The Director elides this unmistakable fact by arguing in the Determination that what we are doing is “relocating” non-complying floor area and that somehow triggers Section 100. We in fact do not agree that we are “relocating” square footage. Instead, and consistent with § 18.70.080, we are “enlarging” or “improving” a facility in a manner that does not “affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title.”

However, even if the Director were correct in characterizing our project as “relocating” square footage, even then he would be incorrect in claiming that such “relocating” triggers Section 100. This is for the simple and unmistakable reason that Section 100 applies to replacing or reconstructing a portion of a noncomplying facility and we are not replacing or reconstructing the Unsafe Permitted Loft Area. The ordinary dictionary definition of replace is “to restore to a former place or position.” See https://www.merriam-webster.com/dictionary/replace . The
ordinary dictionary definition of “reconstruct” is “to build or assemble (something) again.” See https://www.merriam-webster.com/dictionary/reconstruct. Our project does not restore the Unsafe Permitted Loft Area nor does it assemble it again. As such, Section 100 is wholly inapplicable and the Director has invoked it erroneously.

Essentially, and improperly, the Director attempts to graft the additional terms bolded in red below to the following portion of Section 100:

When the damage or destruction of a noncomplying facility affects a portion of the facility that constituted or contributed to the noncompliance, any replacement or reconstruction to such damaged portion, [or relocation thereof,] shall be accomplished in such manner as not to reinstate the noncompliance or degree of noncompliance caused by the destroyed or damaged portion of the facility, and otherwise in full compliance with this title.

But the term “relocation” appears nowhere in the text of Section 100. It is clearly improper for the Director to insert new terms and limitations in existing Code. If the City wishes to revise the Code it is of course free to do so after complying with State and locale procedure for such modifications. Until then, the Planning Department is obligated to apply the Code as written. See CCP § 1858 (“In the construction of a statute or instrument, the office of the Judge is simply to ascertain and declare what is in terms or in substance contained therein, not to insert what has Item 10
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4 been omitted, or to omit what has been inserted; and where there are several provisions or particulars, such a construction is, if possible, to be adopted as will give effect to all.”).3

Our Project Is In Full Compliance with § 18.70.080

Fortunately, the Palo Alto Municipal Code has a provision that is specifically crafted to provide Palo Alto homeowners with much needed breathing room to update and modernize their homes.

Section 80 allows “enlargements” of facilities so long as they “do not increase the degree or manner of non-compliance.”

The flexibility offered by Section 80 is essential to the Code’s statutory scheme. Without it, the City would invite challenges under both the California and U.S. Constitutions (regulatory takings jurisprudence), as well as under the Housing Crisis Act of 2019 and the Housing Accountability Act, which limit a local agency’s ability to down zone or impose new standards midstream.

“Degree” in the context of Section 80 unquestionably speaks to quantity (the same 2,000 sq ft remains) and “manner” speaks to type of violation. Our proposed project keeps the existing Site Coverage and actually reduces FAR by 11 square feet.

Nonetheless, the Director asserts that “relocating” floor area changes the “manner” of non-compliance because the second floor excess becomes first floor excess. To begin, and as noted above, the Director’s assertion that we are “relocating” floor area is simply incorrect. More fundamentally, there is nothing in the Code that says the vertical placement of excess floor area is itself a violation.

The Director’s logic invents a brand-new metric—location—that appears nowhere in §§ 80, 90, or 100. Under the plain meaning rule, his attempt to graft new terms into existing code should be rejected. See Cnty. of Sacramento v. P. Gas & Elec. Co., 238 Cal. Rptr. 305, 311 (Cal. App. 3d Dist. 1987) (“Where the language is plain and admits of no more than one meaning, the duty of interpretation does not arise, and the rules which are to aid doubtful meanings need no discussion.”) (quotation omitted); see also Franklin v. Appel, 10 Cal. Rptr. 2d 759, 765 (Cal.

App. 2d Dist. 1992) (“The court will not, under the guise of construction, rewrite a law, and will not give the words an effect different from the plain and direct import of the terms used.”).

Thus, there is no question that our project comports with Section 80. Indeed, during the application process the Planning Department based its rejection of our plan solely on Section 100. It was only in the Determination that the Director first claimed that we do not satisfy

3 In his Determination, the Director cites in support of his interpretation the 2015 Council’s consideration of an amendment to a different provision of the Code, section 18.18.120. This provision of the Code is not at issue here and relates to commercial buildings in the Palo Alto Commercial District. (Determination at 3). The proceedings referenced by the Director related to a proposed amendment to the Code and not an interpretation of it. The fact that the Planning Department recognized in 2015 that it needed to amend the Code to apply to relocated space as to commercial buildings in the Commercial District underscores that the Department would need to do the same here to obtain the outcome the Director seeks.

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5 Section 80 as well (as noted above in footnote 2, the last-minute citation to Section 80 likely reflects the Director’s growing realization that Section 100 is not in fact applicable to our project).

Once again, the Director tries to graft terms into the Planning Code that are simply not there. The Determination claims that Section 80 “is intended to allow the improvement of a noncomplying facility in a manner unrelated to the particular degree or manner of noncompliance.” (Determination at 2, emphasis added). But the Code uses the term “affect” not “unrelated.” Our home does not affect the degree of noncompliance because it does not add to it in any respect.

Here as well the Director must apply the Code as written and not language that the Director apparently wishes it contained.
4 Conclusion

With respect to our project, we are proposing an addition that does not affect the degree of non- compliance of our project. We are removing the Unsafe Permitted Loft Area and not reconstructing it. As such, Section 80 applies and is satisfied and Section 100 has no application as a matter of law. It is therefore not within the Director’s discretion to deny the application nor is his legal interpretation of provisions of the Code entitled to any degree of deference by the Council (or, if need be, a court).

Relief Requested

The relief we seek is modest: the ability to improve safety and accessibility in our longtime home without being compelled to demolish legally built, character defining portions of the structure.

Timely intervention will spare everyone protracted appeals and public controversy, restore trust in the permitting system, and align City practice with the letter of its own ordinances.

4 California is of course in a housing crisis. It is therefore quite concerning to my wife and I and a number of other Palo Alto homeowners that the Director is so hostile to reasonable development efforts that he seems to create limitations on the right to develop property when none exist.

Indeed, the State of California has directed complaints to the Planning Department for precisely this reason. See
https://www.paloaltoonline.com/palo-alto/2025/04/03/state-orders-palo-alto-to- revise-laws-on-backyard-dwellings/. It is therefore no surprise that the Planning Department under the Director’s leadership receives abysmal reviews and remains the subject of much frustration in our community. See https://www.paloaltoonline.com/palo- alto/2024/12/10/residents-pan-permitting-laud-libraries-in-new-survey/.

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6 My wife and I respectfully request that the Council reverse the Director’s May 8 determination and find that our remodel complies with § 18.70.080 and that § 18.70.100 does not apply and direct staff to issue ministerial approvals forthwith.

We are available to answer any questions or provide supplemental material at the Council’s request.

Respectfully submitted,

/s/
Joseph and Colleen Petersen
Owners / Applicants
3886 Magnolia Drive, Palo Alto, California 94306
(917) 859 9680
[email protected]

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7 Appendix
Relevant Provisions of the Palo Alto Municipal Code

18.70.100 Noncomplying facility - Replacement.

A noncomplying facility which is damaged or destroyed by any means except ordinary wear and tear and depreciation may be reconstructed only as a complying facility, except as follows:
(a) When the damage or destruction of a noncomplying facility affects only a portion of the facility that did not constitute or contribute to the noncompliance, said portion may be repaired or reconstructed to its previous configuration.
(b) When the damage or destruction of a noncomplying facility affects a portion of the facility that constituted or contributed to the noncompliance, any replacement or reconstruction to such damaged portion shall be accomplished in such manner as not to reinstate the noncompliance or degree of noncompliance caused by the destroyed or damaged portion of the facility, and otherwise in full compliance with this title; however, if the cost to replace or reconstruct the noncomplying portion of the facility to its previous configuration does not exceed fifty percent of the total cost to replace or reconstruct the facility in conformance with this subsection, then the damaged noncomplying portion may be replaced or reconstructed to its previous configuration.

In no event shall such replacement or construction create, cause, or increase any noncompliance with the requirements of this title.
(c) Notwithstanding subsections (a) and (b) hereof, a noncomplying facility in the commercial CS, CN and CC zones and the industrial MOR, ROLM, RP and GM districts, except for those areas designated as special study areas, existing on August 1, 1989, which when built was a complying facility, shall be permitted to be remodeled, improved or replaced in accordance with applicable site development regulations other than floor area ratio, provided that any such remodeling, improvement or replacement shall not result in increased floor area. (d) Notwithstanding subsections (a), (b) and (c) hereof, a noncomplying facility housing a conforming use in the R-1 and RE zones, which when built was a complying facility, which is damaged or destroyed by non-willful means (i.e., acts of God) shall be permitted to be replaced, on the same site, and in its previous configuration, without necessity to comply with the current site development regulations, provided that any such replacement shall not result in increased floor area, height, length or any other increase in the size of the facility. (e) Except as otherwise provided in this section with regard to replacement or reconstruction of a portion of a facility to its previous noncomplying condition, all reconstruction shall be subject to all applicable laws, regulations, and procedures otherwise governing construction on the site at the time said construction is undertaken.
(Ord. 5381 § 7, 2016: Ord. 4102 § 1 (part), 1992: Ord. 4016 § 46, 1991: Ord. 3905 § 18, 1989:

Ord. 3890 § 21, 1989: Ord. 3048 (part), 1978)

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8 (b) Except in areas designated as special study areas, the director of planning and development services may permit minor additions of floor area to noncomplying facilities in the commercial CC, CS and CN zones and in the industrial MOR, ROLM, RP and GM districts, subject to applicable site development regulations, for purposes of on-site employee amenities, resource conservation, or code compliance, upon the determination that such minor additions will not, of themselves, generate substantial additional employment. Such additions may include, but not be limited to, the following:
(1) Area designed and used solely for providing on-site services to employees of the facility, such as recreational facilities, credit unions, cafeterias and day care facilities; (2) Area designated for resource conservation, such as trash compactors, recycling and thermal storage facilities; and
(3) Area designed and required for hazardous materials storage facilities, handicapped access, and seismic upgrades.
(Ord. 5494 § 3, 2020: Ord. 5381 § 7, 2016: Ord. 5373 § 22 (part), 2016: Ord. 3890 § 20, 1989:

Ord. 3683 § 18, 1986: Ord. 3048 (part), 1978)

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Colleen and Joseph Petersen
3886 Magnolia Drive
Palo Alto, CA 94306

August 3, 2025

City Council
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301

Subject – Appeal of Director’s Application of PAMC § 18.70.100 to Project Concerning 3886 Magnolia Drive, #25BLD-00025

Dear Mayor Lauing and Members of the City Council:

Thank you for the opportunity to be heard at the August 18, 2025 Council meeting regarding the Director’s May 8, 2025, Interpretation Regarding Relocation of Noncomplying Residential Gross Floor Area Under PAMC Chapter 18.70 (the “Determination”). The Planning Department, on the sole basis of the Determination, has preliminarily denied our application for a very modest remodel of our home in Barron Park. That remodel is designed to convert our home to a one story residence in the interest of allowing us to “age in place” in a home built in 1948 in full compliance with Santa Clara county building code, long prior to Palo Alto’s annexure of our section of the City of Palo Alto.

Introduction and Summary of Issue

Our home is currently two stories. Our second story is quite small and is essentially a permitted loft space that is accessed through a very steep and narrow staircase (as a shorthand, we will refer to it here as the “existing second-floor room”).

Our project is designed to convert our home fully into a single-floor home (in that respect, it has far less neighborhood impact than the many second story additions routinely processed by the Planning Department). Essentially, the aim of the project is to create a closet in the room that we are using as our primary bedroom and relocate some utilities, such as the laundry and additional kitchen and cleaning storage, to a permitted rumpus room and provide interior access to that room from our existing kitchen.

We designed our project to comply with existing Palo Alto planning and building code.

Specifically, Palo Alto Municipal Code § 18.70.080 expressly permits “enlargements” of noncomplying facilities provided they do not “affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title.” § 18.70.080 (emphasis added). Our project does not “affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title” because it does not: (i) enlarge the lot coverage or add total floor area. In fact, it reduces FAR by 11 square feet by eliminating the upstairs loft and building out on the first floor less square footage than we are removing from the second floor.

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2 Nonetheless, the Director has delayed the application for many months on the basis of the Department’s relatively new interpretation of a different provision, § 18.70.100. That section, on its face, is applicable to noncomplying facilities that are damaged or destroyed and the owner seeks to reconstruct that portion.

Notwithstanding the fact that this provision is facially inapplicable to my project and does not override § 18.70.080 either explicitly or implicitly, the Department has invoked it and has refused to allow my application to proceed. There are two very significant flaws with the Department’s interpretation.

First, it has no support in the actual language of § 18.70.100 (the full text of which is appended below). The Department’s grafting of additional restrictions in Section 100 effectively nullifies the standard governing “enlargements” in Section 80.

Second, even the Department viewed Section 100 as having no such limitation until relatively recently. An e-mail produced by the City pursuant to a California Public Records Act request confirms that the City actually expressly permitted projects such as mine until September, 2016 and then abruptly abandoned that practice without seeking any changes to the actual language of § 18.70.100 (or even seeking any guidance from the Council). A copy of this e-mail is attached and the relevant language reads as follows:

In the past, staff has permitted homeowners to remove square footage from one part of a house and add it back to another portion when the property was over FAR. This was done on a case by case basis and there was criteria to ensure the new square footage would be less impactful. Unfortunately, while this was a long standing staff policy, there is no provision in the code that allows this type of “cut and paste”. Therefore “cut and paste” is officially dead! Please ensure all projects conform to Code Section 18.70.

Email from Jodie Gerhardt, Development Center Manager, September 23, 2016.

In fact, Ms. Gerhardt had it backwards and the City’s prior interpretation of § 18.70.100 was the correct one because it simply does not speak to remodeling projects such as mine and has no language supporting the City’s new interpretation. Instead, Section 80 applies and it authorizes our modest project because that project does not “affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title.”

Finally, we note that in the days prior to our appeal appearing on the Consent Calendar the City advised us that it was willing to amend the Code in a manner that would authorize projects like ours under a de minimis exception. We are grateful for that positive step and proposed that this appeal be suspended pending adoption of the exception but the City was not willing to agree to any sort of timeline on the amendment. Since we are literally “not getting any younger” and without any assurances on timing of the amendment, we believe we have no choice but to move forward with our appeal. We, along with similarly situated homeowners, eagerly await Council’s position on the Director’s Interpretation and thank the Council for its consideration of our appeal.

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3 Executive Summary

Relief Requested: Reverse the May 8, 2025 Determination and direct ministerial processing of Permit #25BLD-00025.

Basis: PAMC § 18.70.080 permits the proposed work because it does not increase the particular degree or manner of noncompliance. PAMC § 18.70.100 applies only when a damaged or destroyed noncomplying portion is replaced or reconstructed; here, the noncomplying second- floor room is being removed—not replaced or reconstructed—and thus § 18.70.100 does not constrain the new first-floor work, which is instead evaluated under § 18.70.080.

Support: (i) the text of PAMC § 18.70.100; (ii) 2016 staff email stating that PAMC § 18.70.100 does not bar reconfiguration of floor area within the same nonconforming structure where the degree or manner of noncompliance is not increased; (iii) plan-set metrics table below demonstrating no increase.

Before/After Zoning Metrics (Attach as Exhibit A)
Metric Existing Proposed
Lot Area (sf) 8,100 SF No Change
Allowable GFA (sf) 3,180 SF No Change
GFA (sf) 3,455.30 SF 3,444.06 SF
FAR 3,455.30 SF = 42.65% 3,444.06 SF = 42.52%
Site Coverage (%) 3,922.39 SF (48.42%) 3,912.53 SF (48.30%) Setbacks (F/R/S) (ft) 20’-2”/45’-1”/ 4’-10” No Change/43’-1”/ 4’-10” Height / Daylight Plane 18’-5”/(E) Non-
Conforming gable on L
Side to Remain
NO Change/No Change
Parking
(covered/uncovered)
1/1 tandem

No Change

Analysis

Relevant Law and the Standard of Review

When interpreting an ordinance, courts apply the same rules of interpretation applicable to statutes. See Save Our Heritage Organisation v. City of San Diego, (2015) 237 Cal.App.4th 163, 174, 187 Cal.Rptr.3d 754.). Courts first examine the language of the ordinance, giving the words their usual and ordinary meaning, in the context of the ordinance as a whole and its purpose. See Item 10
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4 Audio Visual Services Group, Inc. v. Super. Ct., 182 Cal. Rptr. 3d 748, 754 (Cal. App. 2d Dist. 2015). In addition, courts “apply common sense to the language at hand” and interpret a provision in a manner that makes “it workable and reasonable” and avoids an absurd result.

Wasatch Property Management v. Degrate, (2005) 35 Cal.4th 1111, 1122, 29 Cal.Rptr.3d 262, 112 P.3d 647.

Interpretation of the Municipal Code presents a pure question of law and as such the Director’s interpretation is entitled to no deference. See MacIsaac v. Waste Management Collection & Recycling, Inc. (2005) 134 Cal.App.4th 1076, 10. See also Manriquez v. Gourley, 130 Cal. Rptr. 2d 209, 214 (Cal. App. 4th Dist. 2003) (review of an agency’s factual determinations are subject to the substantial evidence rule but “where … the determinative question is one of statutory or regulatory interpretation, an issue of law, [courts] may exercise … independent judgment.”). 1 If we are forced to proceed with an appeal to Santa Clara Superior Court, the City would face the prospect of a significant award of attorneys’ fee award as we would be seeking to vindicate the public’s interest in the proper interpretation of the Palo Alto Municipal Code. See CCP § 1021.5 (“Upon motion, a court may award attorneys’ fees to a successful party against one or more opposing parties in any action which has resulted in the enforcement of an important right affecting the public interest …”). Also, in litigation the Planning Department would be subject to discovery aimed at determining whether it is invoking Section 100 even-handedly to small remodels like ours (this issue is also the subject of a pending request under the California Public Records Act and I respectfully reserve the right to update the Council once the City has produced adequate records in response to our request).
2 The Director’s Determination

The Director largely bases his rejection of our plan on Section 18.70.100. 3 That section governs
reconstruction of a residential structure that already exceeds current zoning limits and is

1 The Department has argued that it is entitled to some degree of deference when interpreting the City’s own municipal code. While this may be correct as a general matter, that principle should not apply here when the Department’s interpretation has no grounding in the actual language of the Code and the Department followed the exact opposite interpretation prior to its unexplained about-face in 2016 (see Ms. Gerhardt’s September 23, 2016 e-mail). 2 Indeed, if Section 100 applies to our small project the Planning Department would necessarily have to reject every single remodel of any noncomplying facility (action which would invite a cascade of litigation centered on unlawful taking of property). Judging by the number of projects that are ongoing in Barron Park every day of the week, not even the Planning Department is taking such a restrictive view of Section 100. Indeed, and to its credit, the Planning Department attempted to get some clarity around the meaning and scope of Section 100 back in 2015 but that effort did not gain traction with the members of the City Council at that time. See City Council Staff Report # 6333. We suspect that the Planning Department would benefit from and even appreciate this Council’s guidance on this important issue.

3 Until the Determination was issued on May 8, 2025, the Director entirely rested his rejection on Section 100. In the Determination, he attempts to buttress the rejection with a new claim that we Item 10
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5 damaged or deliberately demolished, and it generally (and sensibly) requires that if that facility is “replac[ed]” or “reconstruct[ed] that such replacement or reconstruction not reinstate the noncompliance. The full text of that provision is appended below with relevant highlighting.

We are clearly not “replacing” or “reconstructing” the existing second-floor room. We are converting it to attic space and not replacing or reconstructing it. The Director would be correct if we were altering the existing second-floor room and keeping it as loft space. But that is not our plan.

Since we are not replacing or reconstructing the existing second-floor room, Section 100 is inapplicable because it only governs replacing or reconstructing space (see highlighting below).

This is for the simple and unmistakable reason that Section 100 applies to replacing or reconstructing a portion of a noncomplying facility and we are not replacing or reconstructing the existing second-floor room. The ordinary dictionary definition of replace is “to restore to a former place or position.” See https://www.merriam-webster.com/dictionary/replace . The
ordinary dictionary definition of “reconstruct” is “to build or assemble (something) again.” See https://www.merriam-webster.com/dictionary/reconstruct. Our project does not restore the existing second-floor room nor does it assemble it again. As such, Section 100 is wholly inapplicable and the Director has invoked it erroneously.

Essentially, and improperly, the Director attempts to graft the additional terms bolded in red below to the following portion of Section 100:

do not satisfy Section 80. This late argument clearly suggests that the Director lacks confidence in his application of Section 100. In any event, the Director’s belated interpretation of Section 80 suffers from the same type of flaw that infects his analysis of Section 100, namely that he inserts terms that are not found in the text of the Code (see infra at 6).

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6 Code it is of course free to do so after complying with State and local procedure for such modifications. Until then, the Planning Department is obligated to apply the Code as written. See CCP § 1858 (“In the construction of a statute or instrument, the office of the Judge is simply to ascertain and declare what is in terms or in substance contained therein, not to insert what has been omitted, or to omit what has been inserted; and where there are several provisions or particulars, such a construction is, if possible, to be adopted as will give effect to all.”). 4 Our Project Is In Full Compliance with § 18.70.080

Fortunately, the Palo Alto Municipal Code has a provision that is specifically crafted to provide Palo Alto homeowners with homes that do not comply with current code (which is in fact a significant percentage of homes in Palo Alto) with much needed breathing room to update and modernize their homes. Section 80 allows “enlargements” of facilities so long as they “do not increase the degree or manner of noncompliance.”

Nonetheless, the Director asserts that “relocating” floor area changes the “manner” of noncompliance because the second floor excess becomes first floor excess. To begin, and as noted above, the Director’s assertion that we are “relocating” floor area is simply incorrect. More fundamentally, there is nothing in the Code that says the vertical placement of excess floor area is itself a violation.

The Director’s logic invents a brand new metric—location—that appears nowhere in §§

18.70.080, 18.70.090, and 18.70.100. Under the plain meaning rule, his attempt to graft new terms into existing code should be rejected. See Cnty. of Sacramento v. P. Gas & Elec. Co., 238 Cal. Rptr. 305, 311 (Cal. App. 3d Dist. 1987) (“Where the language is plain and admits of no more than one meaning, the duty of interpretation does not arise, and the rules which are to aid doubtful meanings need no discussion.”) (quotation omitted); see also Franklin v. Appel, 10 Cal.

Rptr. 2d 759, 765 (Cal. App. 2d Dist. 1992) (“The court will not, under the guise of construction,

4 In his Determination, the Director cites in support of his interpretation the 2015 Council’s consideration of an amendment to a different provision of the Code, section 18.18.120. This provision of the Code is not at issue here and relates to commercial buildings in the Palo Alto Commercial District. (Determination at 3). The proceedings referenced by the Director related to a proposed amendment to the Code and not an interpretation of it. The fact that the Planning Department recognized in 2015 that it needed to amend the Code to apply to relocated space as to commercial buildings in the Commercial District underscores that the Department would need to do the same here to obtain the outcome the Director seeks.

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7 rewrite a law, and will not give the words an effect different from the plain and direct import of the terms used.”).

Thus, there is no question that our project comports with Section 80. There is also no question that had we submitted our application prior to Ms. Gerhardt’s September 23, 2016 e-mail abruptly reversing its longstanding interpretation without citation to the applicable code text, the project would have been quickly approved.

Indeed, during the application process the Planning Department based its rejection of our plan solely on Section 100. It was only in the Determination that the Director first claimed that we do not satisfy Section 80 as well (as noted above in footnote 2, the last-minute citation to Section 80 likely reflects the Director’s growing realization that Section 100 is not in fact applicable to our project).

Here as well the Director must apply the Code as written and not language that the Director apparently wishes it contained. While we appreciate the Department’s commitment to approve our project in the future under a de minimis exception, our project satisfies current code and no such amendment is necessary.

Conclusion

In sum, and viewing the provisions “holistically” (as the Director purports to do), Section 80 allows “enlargements” of noncomplying facilities provided they do not “affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title.” § 18.70.080 (emphasis added). Section 100 applies when a property owner seeks to replace or reconstruct a non-complying facility or a portion of a non-complying facility. § 18.70.100 (emphasis added). The Department properly recognized this distinction in its interpretation until Ms. Gerhardt’s announcement of a materially different approach, one that was not based on the actual language of the Code and one which constituted a significant and unexplained departure from past practice.

With respect to our project, we are proposing an addition that does not affect the degree of non- compliance of our project. We are removing the existing second-floor room and not reconstructing it. As such, Section 80 applies and is satisfied and Section 100 has no application as a matter of law. It is therefore not within the Director’s discretion to deny the application nor is his legal interpretation of provisions of the Code entitled to any degree of deference by the Council (or, if need be, a court).

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8 Relief Requested

The relief we seek is modest: the ability to improve safety and accessibility in our longtime home without being compelled to demolish legally built, character defining portions of the structure.

Timely intervention will spare everyone protracted appeals and public controversy, restore trust in the permitting system, and align City practice with the letter of its own ordinances.

My wife and I respectfully request that the Council reverse the Director’s May 8 determination and find that our remodel complies with § 18.70.080 and that § 18.70.100 does not apply and direct staff to issue ministerial approvals forthwith.

We are available to answer any questions or provide supplemental material at the Council’s request.

Sincerely,

/s/
Joseph and Colleen Petersen
Owners / Applicants
3886 Magnolia Drive, Palo Alto, California 94306
(917) 859 9680
[email protected]

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9 Appendix
Relevant Provisions of the Palo Alto Municipal Code

18.70.100 Noncomplying facility - Replacement.

A noncomplying facility which is damaged or destroyed by any means except ordinary wear and tear and depreciation may be reconstructed only as a complying facility, except as follows:
(a) When the damage or destruction of a noncomplying facility affects only a portion of the facility that did not constitute or contribute to the noncompliance, said portion may be repaired or reconstructed to its previous configuration.
(b) When the damage or destruction of a noncomplying facility affects a portion of the facility that constituted or contributed to the noncompliance, any replacement or reconstruction to such damaged portion shall be accomplished in such manner as not to reinstate the noncompliance or degree of noncompliance caused by the destroyed or damaged portion of the facility, and otherwise in full compliance with this title; however, if the cost to replace or reconstruct the noncomplying portion of the facility to its previous configuration does not exceed fifty percent of the total cost to replace or reconstruct the facility in conformance with this subsection, then the damaged noncomplying portion may be replaced or reconstructed to its previous configuration.

Ord. 3890 § 21, 1989: Ord. 3048 (part), 1978)

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10 (b) Except in areas designated as special study areas, the director of planning and development services may permit minor additions of floor area to noncomplying facilities in the commercial CC, CS and CN zones and in the industrial MOR, ROLM, RP and GM districts, subject to applicable site development regulations, for purposes of on-site employee amenities, resource conservation, or code compliance, upon the determination that such minor additions will not, of themselves, generate substantial additional employment. Such additions may include, but not be limited to, the following:
(1) Area designed and used solely for providing on-site services to employees of the facility, such as recreational facilities, credit unions, cafeterias and day care facilities; (2) Area designated for resource conservation, such as trash compactors, recycling and thermal storage facilities; and
(3) Area designed and required for hazardous materials storage facilities, handicapped access, and seismic upgrades.
(Ord. 5494 § 3, 2020: Ord. 5381 § 7, 2016: Ord. 5373 § 22 (part), 2016: Ord. 3890 § 20, 1989:

Ord. 3683 § 18, 1986: Ord. 3048 (part), 1978)

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11 Item 10
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEM
Lead Department: Utilities
Meeting Date: September 15, 2025
Report #:2501-4048
TITLE
Approval of a Third Phase Agreement with Northern California Power Agency for the Purchase of Battery Energy Storage Capacity from Trolley Pass Project LLC, over a Term of up to 20 Years for a Total Not to Exceed Amount of $161.7 Million; CEQA status: not a project under CEQA Guidelines sections 15378(a), (b)(5)

RECOMMENDATION
The Utilities Advisory Commission (UAC) and staff recommend that the City Council:

1. Authorize the City Manager, or their designee, to execute a Third Phase Agreement (Attachment A) with the Northern California Power Agency (NCPA) to purchase the output of a 50-megawatt (MW) share of a grid-connected battery energy storage system (BESS) owned by Trolley Pass Project LLC, a subsidiary of Aypa Power Development (Aypa), over a period of 20 years, at a total cost not to exceed $161.7 million;

2. Authorize the City Manager, or their designee, to execute on behalf of the City all related documents or agreements necessary to administer the Third Phase Agreement that are consistent with the Palo Alto Municipal Code and City Council-approved policies, including, but not limited to, collateral assignment agreements; and take any and all actions as are necessary or advisable to implement and administer the Third Phase Agreement; and,

3.Authorize the City Manager, or their designee, to approve and execute amendments to the Third Phase Agreement, as may be required from time to time, so long as the contract price and length of the agreement remain unchanged.

EXECUTIVE SUMMARY
Through a Request for Proposals (RFP) recently conducted by NCPA, the City can enter into an agreement to purchase energy storage capacity from Aypa's Trolley BESS Project. This agreement is for a 50 MW share of a grid-connected battery energy storage system (BESS) over 20 years, at a cost not to exceed $161.7 million. The project is expected to begin operations in June 2029.

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The proposed contract is intended to help the City ensure continued compliance with its resource adequacy (RA) capacity procurement obligations and to provide a financial hedge against the market price exposure created by the solar resources in the City’s supply portfolio. The recommendation aligns with the City's 2023 Integrated Resource Plan (IRP) and will help satisfy requirements under Assembly Bill (AB) 2514 regarding energy storage procurement.

While the market for renewable energy and storage has seen price increases recently due to strong demand, supply chain issues, inflation, and tax and trade policy uncertainties, staff analysis indicates that the Trolley project will provide net financial benefits to the City. The contract is structured with NCPA acting as an intermediary, and participating NCPA members will enter into Third Phase Agreements with NCPA. The City will not be at risk of paying for output that is not delivered.

BACKGROUND
The proposed contract will help the City’s electric utility satisfy one of its core needs: resource RA capacity to meet its RA procurement requirements. This recommendation is also consistent with the new resource acquisition schedule outlined in the City’s 2023 IRP. Furthermore, this report and the recommendation to procure BESS capacity from the two projects will enable the City to satisfy its requirements under Assembly Bill (AB) 2514 to regularly evaluate the cost- effectiveness of energy storage.1
Load Requirements
The City’s overall electricity consumption in 2024 was 922 gigawatt-hours (GWh), which represents a 12% increase (100 GWh) from the level in 2021. While this is a substantial amount of load growth in such a short period of time, it tracks closely with the load projections that staff presented in the 2023 IRP, as illustrated by Figure 1 below. While the trajectory of future load remains uncertain, staff anticipates some level of additional growth due to the City’s aggressive building and transportation electrification efforts, as well as reports of potential new data center projects from some of the City’s commercial customers.
1 The City’s most recent AB 2514 Energy Storage Report (Staff Report 12142, April 2021) found that “neither energy storage within the City nor on the transmission system [is] cost effective for the utility or its customers as a whole,” and therefore the City declined to establish an energy storage procurement target at the time. However, it also noted that staff “will continue to monitor this rapidly maturing space and continue looking for specific projects which by virtue of their location could provide extraordinary resiliency, lower carbon emissions, and/or lower distribution system costs,” and that staff will evaluate utility-scale storage proposals and “will move forward with competitive projects that complement CPAU’s existing supply portfolio.” This report serves as an update to this 2021 report’s analysis on the cost-effectiveness of utility-scale energy storage resources, with staff now finding them to provide a net benefit to the City.

Staff Report 12142: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city- manager-reports-cmrs/year-archive/2021/id-12142.pdf
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Figure 1: Actual and Projected Load Compared to 2023 IRP Load Projections RA Requirements
In response to the severe electricity shortages, rolling blackouts, and increasing wholesale electricity prices that gripped the state during the energy crisis of 2000-2001, in 2004 California adopted an official RA program. The purpose of the program is to ensure the safe and reliable operation of the electric grid by requiring utilities to procure and maintain sufficient generating capacity – including from BESS facilities – to meet statewide peak demand plus a planning reserve margin (currently around 15%). While the City currently meets its system RA obligations, approximately 50 MW of RA capacity from its largest hydroelectric resource is at risk starting as early as 2027 due to potential regulatory changes.

The Market for Energy Storage and Renewable Energy in California California's renewable energy and storage market has evolved significantly over the past decade due to shifting state and federal policies. While solar and storage prices steadily declined from 2010 to 2020, they have begun to increase in recent years. This market shift is attributable to: (a) strong demand driven by the state's ambitious procurement requirements for renewable energy, RA, and storage; (b) pandemic-related supply chain issues and inflation; and (c) recent volatility in federal trade policy and uncertainty surrounding future federal tax incentives for renewable energy and storage projects.

In 2022, Congress passed the Inflation Reduction Act (IRA), which provided generous benefits to developers of renewable energy and storage projects, and which extended those benefits into the 2030s. However, in July 2025 Congress passed a wide-ranging domestic policy law that Item 11
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dramatically scales back those benefits for solar and wind projects and adds new restrictions on the incentives for energy storage and other renewable resources. Furthermore, the U.S. has recently imposed a shifting series of tariffs on imports coming from most countries, including very steep ones on goods coming from China – which is a major producer of solar cells, lithium- ion batteries, as well as the raw materials and components that go into those products. This unprecedented level of policy uncertainty facing the renewable energy and storage industry in the U.S. has caused many project developers to put their development efforts on hold and has led others to raise the prices of the projects they are marketing.

Despite these challenges, renewable energy and storage capacity continue to grow steadily, as utilities strive to meet their various procurement requirements and ensure system reliability in the face of growing loads. Today, California has approximately 20,000 MW of utility-scale solar capacity in operation3, along with approximately 30,000 MW of behind-the-meter solar capacity.4 The state’s BESS capacity has also exploded, going from just 771 MW in 2019 to over 15,000 MW operating today.5

ANALYSIS
Results of NCPA’s 2024 Renewable Energy and Storage RFP In early 2024, NCPA6 issued an RFP for new renewable and/or carbon-free generating resources and energy-storage resources. 7 By the submission deadline in April 2024, NCPA had received a total of about 30 proposals, all of which were for solar and/or BESS facilities. Palo Alto staff evaluated these proposals, primarily based on the economic value provided by each project relative to its cost, narrowing the list down to a handful of projects. During the evaluation, some projects were removed from consideration after securing contracts with other buyers.

Ultimately, Palo Alto staff expressed strong interest in the Trolley contract, as well as a portion of a 200 MW solar-plus-storage project located in Fresno County. Unfortunately, after months of negotiations between the project developer and NCPA and member utility staff, the solar-plus- storage discussions broke down due to an inability to agree to terms related to the risks associated with interconnection delays and tariff price risk. As a result, staff will pursue other avenues in the coming months for procuring additional renewable energy capacity.

Aypa’s Trolley BESS Project Summary
Aypa submitted several BESS project proposals into NCPA’s 2024 RFP, including the Trolley project. Trolley is a planned 400 MW BESS project located in San Bernardino County, near the 3 Energy Information Administration: https://www.eia.gov/state/analysis.php?sid=CA 4 Solar Energy Industries Association: https://seia.org/wp-content/uploads/2025/03/California-3.pdf 5 Governor’s office: https://www.gov.ca.gov/2025/05/19/since-governor-newsom-took-office-californias-battery- storage-has-increased-1944-and-just-achieved-a-major-milestone/ 6 NCPA is a not-for-profit Joint Powers Agency whose membership includes municipalities, a rural electric cooperative, and other publicly owned entities, including the City of Palo Alto. The mission of NCPA is to provide members cost effective wholesale power, energy-related services, and advocacy on behalf of public power consumers through joint action.
7 Section 2.30.340(d) of the City’s Municipal Code permits the City to procure wholesale utility commodities and services through public agencies, including NCPA.

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City of Rancho Cucamonga. The project is at an advanced stage of development, with an executed interconnection agreement (with Southern California Edison), and a Full Capacity Deliverability Status (FCDS) designation from the California Independent System Operator (CAISO), allowing its capacity to count towards RA obligations. It is expected to begin operating in June 2029.

The 20-year Energy Storage Services Agreement (ESSA) with Aypa has a contract price of $12.71/kW-month. However, due to current federal tax and trade policy uncertainty, the agreement allows Aypa to seek a slight price increase (up to 6%) within the next year if an independent evaluator confirms it's necessary for project viability due to cost increases such as changes in tax law or supply chain problems beyond Aypa's control. Even with a potential price increase, the Trolley project remains competitive with other BESS proposals presented to NCPA and is still projected to offer a net financial benefit to the City over its contract term.

Due to the high penetration levels of solar generation in California (particularly Southern California), there are often wide intraday price spreads between the solar-heavy mid-day hours and the more expensive evening hours, when load tends to increase just as solar generation tapers off. BESS facilities are perfectly positioned to capture this value opportunity, charging during the low-priced midday period and discharging during the high-priced evening hours. 13 Despite the significant increase in California’s BESS capacity over the last several years, solar generation capacity continues to grow at an even faster rate, suggesting that this value opportunity is likely to persist or even expand in the future.

The Trolley project's estimated net energy arbitrage value over the contract term will roughly equal its contract cost, based on a long-term forecast of energy prices at its location and a model of the battery's four-hour charging/discharging pattern. The project will also provide valuable RA capacity to the City. Assuming the project’s RA capacity value equals NCPA's current monthly Capacity Pool Program prices, staff estimates the project's overall net value to be approximately $7.70/kW-month, or $4.63 million annually for a 50 MW share.

Other NCPA members seeking a share of the Trolley project include the Cities of Santa Clara (200 MW), Redding (45 MW), Alameda (10 MW), and several smaller members. Staff recommends that Palo Alto contract for a 50 MW share of the Trolley project, primarily due to the RA needs of the City’s existing resource portfolio (as discussed further below). If Palo Alto receives a 50 MW share, NCPA members will collectively be contracting for 320 MW of the project’s total 400 MW capacity.
13 The Trolley BESS project will be scheduled by NCPA in a way that maximizes the total net revenue it produces – whether in the ancillary services (regulation up/down) market, or in the energy market. Most likely it will be used in the “energy arbitrage” manner described here, charging during the lowest priced hours of the day and discharging during the highest priced hours. It will not explicitly operate as a “load-following” resource (i.e., one that attempts to balance the City’s load and resource supplies), because the City’s portfolio has a high concentration of solar generation it tends to have surplus supplies during the lowest priced hours of the day, and therefore the BESS will likely have the effect of balancing the City’s load and generation supplies.

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Accurately predicting the net value of any 15- or 20-year contract is challenging due to significant uncertainties in future energy and RA prices, which are influenced by macroeconomic conditions, regulations, and regional power market dynamics. Furthermore, the Trolley contract has added economic valuation uncertainty due to the potential for a slight contract price increase discussed above even after execution. Nonetheless, staff anticipates the resource will be a beneficial long- term investment for the City.

Contract Structure
The Trolley agreement is structured as a direct contract between NCPA and the project developer, Aypa. To enable NCPA to enter into this agreement, participating NCPA members must execute Third Phase Agreements with NCPA, which specify the rights and obligations of NCPA and participating members regarding governance and administration of the agreement.

These Third Phase Agreements also obligate the participating members to pay their contract percentage share of all project costs, including administrative services costs, scheduling coordination costs, and all other costs related to the ESSA. The City and NCPA utilized the same contractual arrangement in 2023 for the Calpine geothermal agreement.

Palo Alto’s Electric Supply Portfolio with the Trolley Project As noted earlier, the Trolley project will provide the City with valuable RA capacity and a financial hedge against intraday market price volatility. In addition, adding this BESS capacity to the City’s supply portfolio aligns with the City’s adopted 2023 Integrated Resource Plan (IRP).

However, because BESS facilities only store (rather than generate) energy, this resource will not have any impact on the City’s renewable portfolio standard (RPS) position. Additionally, BESS facilities actually consume a small amount of energy, due to the 10-15% roundtrip efficiency losses that are inherent to batteries. This minimal effect on the City’s load-resource balance is illustrated by the small gray bars below the x-axis in Figure 2.

As Figure 2 illustrates, starting in 2029 staff projects that the City’s load will exceed the volume of generation supplies that are currently under contract, and these deficits are projected to grow over time as existing contracts expire and the City’s load increases. Staff is actively working to acquire resources to fill these deficit positions – for example, by initiating discussions with two of the City’s existing suppliers about extending wind and landfill gas PPAs that are set to expire in the next few years. NCPA is also preparing to issue another RFP in early 2026 for new renewable energy and storage resources, and Utilities staff will again actively participate in this process to pursue new generation supplies.

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Figure 2: Projected Annual Load and Energy Supplies with Trolley As a load-serving entity within the CAISO balancing authority, the City must comply with Resource Adequacy (RA) market obligations. CAISO RA requirements specify the annual and monthly generating capacity levels the City must procure for local, system, and flexible RA needs – which are based on the City’s projected peak load plus a planning reserve margin (PRM). The City currently satisfies its RA requirements by leveraging its own resources, participating in NCPA's Capacity Pool Program, and engaging in bilateral transactions with other market participants. The BESS capacity from the Trolley contract will contribute to the City's system RA requirements.

Figures 3 below indicates that the City currently has system RA surpluses of approximately 50 MW per month. The recommended share of the Trolley contract would increase the City’s system RA surplus position by 50 MW. Note, however, that roughly half of the RA capacity that the City receives from its largest single resource (representing about 50 MW from the Western Base Resource hydroelectric contract) is at risk as early as 2027 due to potential regulatory changes.

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Figure 3: Annual Average System RA Balance Forecast with Trolley Consistency with IRP’s Recommended Plan
In 2023, in accordance with state law, the City adopted an Integrated Resource Plan (IRP) that included an extensive analysis of its future load and resource needs. The IRP’s Recommended Plan called for acquiring 25 MW of new solar generation capacity in both 2030 and 2031 (followed by additional volumes in the late 2030s and early 2040s), plus some BESS capacity in the early 2040s15. Approving the Trolley contract aligns with the IRP’s recommendations, although the BESS capacity will come online about a decade sooner than planned. This deviation is justified by the potential loss of significant RA capacity from the City’s existing supply portfolio—a possibility that was not apparent in 2023 – and the strong financial merit of the Trolley contract.

Also, in the IRP staff noted that an important goal in new resource acquisitions was to diversify the City’s supply portfolio and reduce its seasonal and intraday market price exposure. Given that Palo Alto’s current electric supply portfolio lacks large-scale energy storage capacity, the recommended addition of 50 MW of BESS capacity will significantly diversify the City’s resource mix. And with a significant concentration of solar resources in both the City's supply portfolio and the broader CAISO grid, the addition of this BESS capacity will allow NCPA to balance the City’s load while substantially mitigating the City's exposure to daily low-priced hours. 15 Specifically, the Recommended Plan included 25 MW of 4-hour BESS capacity in 2041, 25 MW of 10-hour BESS capacity in 2043, and 25 MW of 8-hour BESS capacity in 2045.

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Risk Management Assessment
In general, businesses in the renewable industry often lack extensive financial and operational track records, and due to their capital-intensive nature, they tend to be highly leveraged as well.

Aypa fits this pattern, in that it does not have a credit rating or an extensive balance sheet.

However, it is a Blackstone portfolio company with a proven history of developing energy storage and hybrid (solar-plus-storage) renewable projects across North America, with 35 projects completed or under construction.

To mitigate the credit risk associated with the supplier, the contract requires that Aypa provide a significant amount of collateral (in the form of cash or a letter of credit)17, which would protect the City and the other offtakers in a scenario where the facility is unable to produce the contracted output and the market price of the replacement storage capacity is higher than the price of this resource. And crucially, under the terms of the proposed contract the City is not at risk for paying for output that is not delivered. The City will only be obligated to pay if Trolley’s capacity is available to be used for RA compliance and energy arbitrage purposes.

FISCAL/RESOURCE IMPACT
Council approval of this Third Phase Agreement will grant the City the rights to a 50 MW share of the Trolley BESS, with a total not-to-exceed amount of $8.08 million/year during the 20-year contract term (which is expected to begin in June 2029). Funding for the purchase of the Trolley output will be included in the Electric Utility Fund budget beginning in FY 2029.

STAKEHOLDER ENGAGEMENT
Utilities staff and the City Attorney’s Office coordinated with NCPA staff as well as staff from other participating NCPA member agencies to negotiate the terms of the contract with Aypa.

Utilities staff also consulted with Administrative Services Department staff to assess the credit risk associated with this contract.

At its July 9, 2025 meeting, the UAC reviewed staff’s recommendation to contract for a 50 MW share of the Trolley BESS project. Commissioners inquired about how the project will be operated and various contract provisions, the expected impacts on the renewable energy and storage industry from the recent passage of new federal domestic policy laws, and the risks the City may face through this agreement. Following this discussion, the UAC voted unanimously (7-0) to recommend that the City Council approve the staff recommendation.

ENVIRONMENTAL REVIEW
The City Council’s recommendation to approve the Trolley Third Phase Agreements does not meet the definition of a project under the California Environmental Quality Act (CEQA), pursuant 17 The collateral requirement will initially be $20 million for NCPA’s share of the contract, increasing to $40 million on January 1, 2028. Once the project begins operating, the collateral requirement will be $32 million throughout the term of the agreement.

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to CEQA Guidelines sections 15378(a) since Palo Alto’s purchase of capacity and storage under this Agreement has no potential to result in a physical change to the environment, and 15378(b)(5), since entering the agreement is an administrative action of government that will not result in physical changes to the environment. The Seller, Trolley Pass Project, LLC, is responsible for obtaining CEQA approvals from Rancho Cucamonga, the Lead Agency, under Article 13 of the Agreement. The City has no obligation to make any purchases under the Agreement until CEQA approvals for the underlying Project are complete, the judicial review period for CEQA challenges has passed, or such challenges, if any, have been dismissed.

ATTACHMENTS
Attachment A: Third Phase Agreement with NCPA for the Trolley BESS Project APPROVED BY:

Alan Kurotori, Utilities Director
Staff: Jim Stack, Ph.D, Senior Resource Planner
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THIRD PHASE AGREEMENT
FOR

ENERGY STORAGE SERVICE AGREEMENT
WITH

TROLLEY PASS PROJECT LLC
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THIRD PHASE AGREEMENT FOR BATTERY ENERGY STORAGE AGREEMENT

TABLE OF CONTENTS
Section 1. Definitions.....................................................................................................3 Section 2. Purpose........................................................................................................10 Section 3. Sale and Purchase of Product...................Error! Bookmark not defined.

Section 4. Billing and Payments................................................................................11 Section 5. Security Deposit Administration.............................................................14 Section 6. Cooperation and Further Assurances.....................................................19 Section 7. Participant Covenants and Defaults.......................................................19 Section 8. Administration of Agreement..................................................................23 Section 9. Transfer of Rights by Participants...........................................................25 Section 10. Term and Termination..............................................................................26 Section 11. Withdrawal of Participants......................................................................26 Section 12. Settlement of Disputes and Arbitration..................................................27 Section 13. Miscellaneous.............................................................................................27 EXHIBIT A. Project Participation Percentages...........................................................40 EXHIBIT B. Eenergy Storage Services Agreement.....Error! Bookmark not defined.

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1 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT This THIRD PHASE AGREEMENT (“this Agreement”) is dated as of ______________, 20__ by and among the Northern California Power Agency, a joint powers agency of the State of California (“NCPA”), and the signatories to this Agreement other than NCPA (“Participants”). NCPA and the Participants are referred to herein individually as a “Party” and collectively as the “Parties”.

RECITALS
A. NCPA has heretofore been duly established as a public agency pursuant to the Joint Exercise of Powers Act of the Government Code of the State of California and, among other things, is authorized to acquire, construct, finance, and operate buildings, works, facilities, and improvements for the generation and transmission of electric capacity and energy for resale.

B. Each of the Participants is a signatory to the Joint Powers Agreement which created NCPA and therefore is a Member.

C. Each of the Participants to this Agreement have executed the Amended and Restated Facilities Agreement, dated October 1, 2014, which establishes the framework under which Project Agreements are created for the development, design, financing, construction, and operation of specific NCPA Projects.

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2 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT D. The Participants desire NCPA to enter into an Energy Storage Service Agreement (“ESSA”) with Trolley Pass Project LLC (“Seller”), to purchase the Product for the benefit of the Participants’ customers.

E. Each Participant is authorized by its Constitutive Documents to obtain the Product for its present or future requirements, through contracts with NCPA or otherwise.

F. To enable NCPA to enter into the ESSA on behalf of the Participants, pursuant to the terms and conditions of the Amended and Restated Facilities Agreement, NCPA and the Participants wish to enter into this Agreement to provide all means necessary for NCPA to fulfill obligations incurred on behalf of NCPA and the Participants pursuant to the ESSA, and to enable and obligate the Participants to take delivery of and pay for the Product and to pay NCPA for all costs it incurs for undertaking the foregoing activities.

G. Upon full execution of this Agreement, NCPA will enter into the ESSA on behalf of the Participants, and such ESSA shall be deemed a NCPA Project by the Commission.

H. Each of the Parties intends to observe the provisions of this Agreement in good faith and shall cooperate with all other Parties in order to achieve the full benefits of joint action.

I. The Parties desire to equitably allocate costs of NCPA’s provision of services under this Agreement among the Participants.

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3 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT J. The Participants further desire, insofar as possible, to insulate other Members who are not Participants, from risks inherent in the services and transactions undertaken on behalf of the Participants pursuant to this Agreement.

NOW, THEREFORE, the Parties agree as follows:

Section 1. Definitions.

1.1 Definitions. Whenever used in this Agreement (including the Recitals hereto), the following terms shall have the following respective meanings, provided, capitalized terms used in this Agreement (including the Recitals hereto) that are not defined in Section 1 of this Agreement shall have the meaning indicated in Section 1 of the Power Management and Administrative Services Agreement, dated October 1, 2014:

1.1.1 “Actual Contract Price Increase” has the meaning set forth in Section 1.1 of the ESSA.

1.1.2 “Administrative Services Costs” means that portion of the NCPA administrative, general and occupancy costs and expenses, including those costs and expenses associated with the operations, direction and supervision of the general affairs and activities of NCPA, general management, treasury operations, accounting, budgeting, payroll, human resources, information technology, facilities management, salaries and wages (including retirement benefits) of employees, facility operation and maintenance costs, taxes and payments in lieu of taxes (if any), insurance premiums, fees for legal, engineering, financial and other services, power management services, Item 11
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4 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT general settlement and billing services and general risk management costs, that are charged directly or apportioned to the provision of services under this Agreement.

Administrative Services Costs as separately defined herein and used in the context of this Agreement is different and distinct from the term Administrative Services Costs as defined in Section 1 of the Power Management and Administrative Services Agreement.

1.1.3 “Agreement” means this Third Phase Agreement, including all Exhibits attached hereto.

1.1.4 "All Resources Bill” has the meaning set forth in the Power Management and Administrative Services Agreement.

1.1.5 “CAISO” means the California Independent System Operator Corporation, or its functional successor.

1.1.6 “CAISO Tariff” means the duly authorized tariff, rules, protocols and other requirements of the CAISO, as amended from time to time.

1.1.7 “Capacity Damages” has the meaning set forth in Section 1.1 of the ESSA.

1.1.8 “Change in Tax Law” has the meaning set forth in Section 1.1 of the ESSA.

1.1.9 “Commercial Operation” has the meaning set forth in Section 1.1 of the ESSA.

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5 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT

1.1.10 “Commercial Operation Date” has the meaning set forth in Section

1.1 of the ESSA.

1.1.11 "Commission” has the meaning set forth in the Power Management and Administrative Services Agreement.

1.1.12 “Constitutive Documents” means, with respect to NCPA, the Joint Powers Agreement and any resolutions or bylaws adopted thereunder with respect to the governance of NCPA, and with respect to each Participant, the California Government Code and other statutory provisions applicable to such Participant, any applicable agreements, charters, contracts, or other documents concerning the formation, operation or decision making of such Participant, including, if applicable, its city charter, and any codes, ordinances, bylaws, and resolutions adopted by such Participant’s governing body.

1.1.13 “Contract Price” has the meaning set forth in Section 1.1 of the ESSA.

1.1.14 “Defaulting Participant” has the meaning set forth in Section 7.2.

1.1.15 “Electric System” has the meaning set forth in the Power Management and Administrative Services Agreement.

1.1.16 “Event of Default” has the meaning set forth in Section 7.2.

1.1.17 “Facility” has the meaning set forth in Section 1.1 of the ESSA.

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1.1.18 “Final Independent Report” has the meaning set forth in Section

1.1 of the ESSA.

1.1.19 “General Operating Reserve” means the NCPA General Operating Reserve created through resolution of the Commission, as the same may be amended from time to time.

1.1.20 “Initial Independent Report” has the meaning set forth in Section

1.1 of the ESSA.

1.1.21 “Installed Battery Capacity” has the meaning set forth in Section

1.1 of the ESSA.

1.1.22 “MW” means megawatt.

1.1.23 “MWh” means megawatt hour.

1.1.24 “NCPA” has the meaning set forth in the Recitals hereto.

1.1.25 “Participant” has the meaning set forth in the recitals of this Agreement.

1.1.26 “Party” or “Parties” has the meaning set forth in the preamble hereto; provided that “Third Parties” are entities that are not Party to this Agreement.

1.1.27 “Power Management and Administrative Services Agreement” means the NCPA Power Management and Administrative Services Agreement, dated as of October 1, 2014, between NCPA and the Members who are signatories to that agreement by which NCPA provides Power Management and Administrative Services.

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1.1.28 “Product” has the meaning set forth in Section 1.1 of the ESSA.

1.1.29 “Project” or “ESSA” means the Energy Storage Service Agreement, dated as of ____________, 20__ between NCPA and Seller, under which NCPA, on behalf of the Participants, purchases Product from the Facility located in San Bernardino County, California, consisting of a separately metered 300 MWAC section of a larger battery energy storage facility commonly known as the Trolley Battery Energy Storage Project. Upon final execution of the ESSA, the Project shall be deemed a NCPA Project in accordance with the Amended and Restated Facilities Agreement. The ESSA has been attached to this Agreement as Exhibit B.

1.1.30 “Project Costs” means all costs charged to and paid by NCPA pursuant to the ESSA.

1.1.31 “Project Participation Percentage” has the meaning set forth in the Power Management and Administrative Services Agreement, and are set forth in Exhibit A of this Agreement.

1.1.32 “Proposed Contract Price Increase” has the meaning set forth in Section 1.1 of the ESSA.

1.1.33 “Proposed Contract Price Increase Cap” has the meaning set forth in Section 1.1 of the ESSA.

1.1.34 “Revenue” means , with respect to each Participant, all income, rents, rates, fees, charges, and other moneys derived by the Participant from the Item 11
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8 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT ownership or operation of its Electric System, including, without limiting the generality of the foregoing: (a) all income, rents, rates, fees, charges or other moneys derived from the sale, furnishing and supplying of electric capacity and energy and other services, facilities, and commodities sold, furnished, or supplied through the facilities of its Electric System; (b) the earnings on and income derived from the investment of such income, rents, rates, fees, charges or other moneys to the extent that the use of such earnings and income is limited by or pursuant to law to its Electric System; (c) the proceeds derived by the Participant directly or indirectly from the sale, lease or other disposition of all or a part of the Electric System; and (d) the proceeds derived by Participant directly or indirectly from the consignment and sale of freely allocated greenhouse gas compliance instruments into periodic auctions administered by the State of California under the California Cap-and-Trade Program, provided that such proceeds are a permitted use of auction proceeds, but the term Revenues shall not include (i) customers' deposits or any other deposits subject to refund until such deposits have become the property of the Participant or (ii) contributions from customers for the payment of costs of construction of facilities to serve them.

1.1.35 “Scheduling Protocols” means the applicable provisions of the Amended and Restated Scheduling Coordination Program Agreement, and any other contractual or other arrangements between NCPA and the Participants concerning the scheduling, delivery and metering of the ESSA.

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1.1.36 “Security Deposit” means the account established by NCPA and funded by the Participants in accordance with Section 5, the funds of which are available for use by NCPA in accordance with the terms and conditions hereof.

1.1.37 “Seller” means Trolley Pass Project LLC, as set forth in Recital D of this Agreement, or as otherwise set forth in the ESSA.

1.1.38 “Storage Contract Capacity” has the meaning set forth in Section

1.1 of the ESSA.

1.1.39 “Supply Chain Event” has the meaning set forth in Section 1.1 of in the ESSA.

1.1.40 “Term” has the meaning set forth in Section 10.

1.1.41 “Third Party” means an entity (including a Member) that is not Party to this Agreement.

1.2 Rules of Interpretation. As used in this Agreement (including the Recitals hereto), unless in any such case the context requires otherwise: The terms “herein,” “hereto,” “herewith” and “hereof” are references to this Agreement taken as a whole and not to any particular provision; the term “include,” “includes” or “including” shall mean “including, for example and without limitation;” and references to a “Section,” “subsection,” “clause,” “Appendix”, “Schedule”, or “Exhibit” shall mean a Section, subsection, clause, Appendix, Schedule or Exhibit of this Agreement, as the case may be.

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10 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT regulation or ordinance shall be a reference to that agreement, instrument, tariff or other document, or law, regulation or ordinance as such now exists and as may be amended from time to time, or its successor. A reference to a “person” includes any individual, partnership, firm, company, corporation, joint venture, trust, association, organization or other entity, in each case whether or not having a separate legal personality and includes its successors and permitted assigns. A reference to a “day” shall mean a Calendar Day unless otherwise specified. The singular shall include the plural and the masculine shall include the feminine, and vice versa.

Section 1. Purpose. The purpose of this Agreement is to: (i) set forth the terms and conditions under which NCPA shall enter into the ESSA on behalf of the Participants, (ii) authorize NCPA, acting on behalf of the Participants, to engage in all activities related to that basic purpose, and (iii) specify the rights and obligations of NCPA and the Participants with respect to the ESSA.

Section 2. Sale and Purchase of Product. By executing this Agreement, each Participant acknowledges and agrees to be bound by the terms and conditions of the Agreement, and that the Agreement is written as a “take-or-pay” agreement. Any Product delivered to NCPA under the ESSA shall be delivered to each Participant in proportion to such Participant’s Project Participation Percentage as set forth in Exhibit A, and each Participant shall accept and pay for its respective percentage of such Product. To the extent a Participant is unable to accept such deliveries in full, NCPA shall dispose of such Item 11
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11 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT surplus in its sole discretion, in such a manner to attempt to maximize Participant value and that Participant shall reimburse to NCPA any costs incurred by NCPA in doing so.

Notwithstanding the above, NCPA may allocate Product procured through the ESSA among the Participants in such percentages as NCPA may, in its reasonable discretion, determine are necessary, desirable, or appropriate, in order to accommodate Participant transfer rights pursuant to Section 9.

3.1 Scheduling. Product delivered from Seller shall be scheduled for and to the Participants in accordance with Scheduling Protocols, and the terms and conditions of the ESSA.

Section 4. Billing and Payments

4.1 Participant Payment Obligations. Each Participant agrees to pay to NCPA each month its respective portion of the Project Costs, Administrative Services Costs, scheduling coordination costs, and all other costs for services provided in accordance with this Agreement and the Amended and Restated Facilities Agreement. In addition to the aforementioned monthly payment obligations, each Participant is obligated to fund: (i) any and all required Security Deposits calculated in accordance with Section 5, and (ii) any working capital requirements for the Project maintained by NCPA as determined, collected and set forth in the Annual Budget.

4.2 Invoices. NCPA will issue an invoice to each Participant for its share of Project Costs, Administrative Services Costs, scheduling coordination costs, and all other Item 11
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12 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT costs for services provided in accordance with this Agreement and the Amended and Restated Facilities Agreement. Such invoice may be either the All Resources Bill or separate special invoice, as determined by NCPA. At NCPA’s discretion, invoices may be issued to Participants using electronic media or physical distribution.

4.3 Payment of Invoices. All invoices delivered by NCPA (including the All Resources Bill) are due and payable thirty (30) Calendar Days after the date thereof; provided, however, that any amount due on a day other than a Business Day may be paid on the following Business Day.

4.4 Late Payments. Any amount due and not paid by a Participant in accordance with Section 4.3 shall be considered late and bear interest computed on a daily basis until paid at the lesser of (i) the per annum prime rate (or reference rate) of the Bank of America NT&SA then in effect, plus two percent (2%) or (ii) the maximum rate permitted by law.

4.5 Billing Disputes. A Participant may dispute the accuracy of any invoice issued by NCPA under this Agreement by submitting a written dispute to NCPA, within thirty (30) Calendar Days after the date of such invoice; nonetheless the Participant shall pay the full amount billed when due. If a Participant does not timely question or dispute the accuracy of any invoice in writing, then the invoice shall be deemed to be correct.

Upon review of a submitted dispute, if an invoice is determined by NCPA to be incorrect, then NCPA shall issue a corrected invoice and refund any amounts that may be due to the Participant. If NCPA and the Participant fail to agree on the accuracy of an invoice within Item 11
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13 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT thirty (30) Calendar Days after the Participant has disputed it, then the General Manager shall promptly submit the dispute to the Commission for resolution. If the Commission and the Participant fail to agree on the accuracy of a disputed invoice within sixty (60) Calendar Days after its submission to the Commission, then the dispute may then be resolved under the mediation and arbitration procedures set forth in Section 12 of this Agreement; provided, however, that prior to resorting to either mediation or arbitration proceedings, the full amount of the disputed invoice must be paid by the Participant.

4.6 Billing/Settlement Data and Examination of Books and Records.

4.6.1 Settlement Data. NCPA shall make billing and settlement data available to the Participants in the All Resources Bill, or other invoice, or upon request.

NCPA may also, at its sole discretion, make billing and settlement support information available to Participants using electronic media (e.g. electronic data portal).

Procedures and formats for the provision of such electronic data submission may be established by the Commission from time to time. Without limiting the generality of the foregoing, NCPA may, in its reasonable discretion, require the Participants to execute a non-disclosure agreement prior to providing access to the NCPA electronic data portal.

4.6.2 Examination of Books and Records. Any Participant to this Agreement shall have the right to examine the books and records created and Item 11
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14 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT maintained by NCPA pursuant to this Agreement at any reasonable, mutually agreed upon time.

Section 5. Security Deposit Administration

5.1 Security Deposit Requirements. Each Participant agrees that any funds deposited at NCPA to satisfy Participant’s Security Deposit requirements pursuant to this Agreement shall be irrevocably committed and held by NCPA in the General Operating Reserve, and that such funds may be used by NCPA in accordance with Section 5.1.3.

Each Participant’s Security Deposit will be accounted separately from and in addition to any other security accounts or deposits maintained pursuant to any other agreement between NCPA and the Participant, or any other such security account or deposits required of Members. In connection with fulfilling the Security Deposit requirements of this Agreement, Participant may elect to use its uncommitted funds held in the General Operating Reserve to satisfy in whole or in part its Security Deposit required under Section 5. If Participant chooses to satisfy in whole or in part its security requirements using its uncommitted funds held in the General Operating Reserve, then Participant is required to execute and deliver to NCPA an Irrevocable Letter of Direction, directing NCPA to utilize Participant’s uncommitted General Operating Reserve funds for such purposes, and the designated funds will thereafter be irrevocably committed and held by NCPA to satisfy the requirements of this Agreement.

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15 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT

5.1.1 Initial Amounts. No later than ninety (90) day prior to the Commercial Operation Date, each Participant shall ensure that sufficient Security Deposit funds have been deposited with and are held by NCPA in an amount not greater than the highest three (3) months of estimated Project Costs, as estimated by NCPA. Such Security Deposit requirement may be satisfied by Participant in whole or part either in cash, through irrevocable commitment of its uncommitted funds held in the General Operating Reserve in accordance with Section 5.1, or through a clean, irrevocable letter of credit satisfactory to NCPA’s General Manager.

5.1.2 Subsequent Deposits. Periodically, and at least quarterly, NCPA shall review and revise its estimate of Project Costs for which Participant shall be obligated to pay under this Agreement. Following such review, NCPA shall determine whether each Participant has a sufficient Security Deposit balance at NCPA. To the extent that any Participant’s Security Deposit balance is greater than one hundred and ten percent (110%) of the amount required herein, NCPA shall credit such amount as soon as practicable to the Participant’s next following All Resources Bill, or by separate special invoice. To the extent that any Participant’s Security Deposit balance is less than ninety percent (90%) of the amount required herein, NCPA shall add such amount as soon as practicable to such Participant’s next All Resources Bill, or as necessary, to a special invoice to be paid by Participant upon receipt. Credits or additions shall not be made to Participants who satisfy these Security Deposit requirements in whole through Item 11
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16 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT the use of a letter of credit; provided, that the amount of the letter of credit shall be adjusted, as required from time to time, in a like manner to assure an amount not to exceed the highest three (3) months of estimated Project Costs is available to NCPA, as determined by NCPA.

5.1.3 Use of Security Deposit Funds. NCPA may use any and all Security Deposit funds held by NCPA (or utilize a letter of credit provided in lieu thereof) to pay any costs it incurs hereunder, including making payments to Seller, without regard to any individual Participant’s Security Deposit balance or proportionate share of Project Costs, and irrespective of whether NCPA has issued an All Resources Bill or special invoice for such costs to the Participants or whether a Participant has made timely payments of All Resources Bills or special invoices.

Should Participant have satisfied its Security Deposit requirements in whole or part through a letter of credit, NCPA may draw on such letter of credit to satisfy Participant’s obligations hereunder at NCPA’s sole discretion. Notwithstanding the foregoing, if any Participant fails to pay any costs incurred by NCPA pursuant to this Agreement, NCPA shall first use that non-paying Participant’s Security Deposit and shall not use any other Participants’ Security Deposit until such non-paying Participant’s Security Deposit has been exhausted.

5.1.4 Accounting. If Security Deposit funds or a letter of credit are used by NCPA to pay any costs it incurs hereunder as described in Section 5.1.3, then NCPA Item 11
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17 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT will maintain a detailed accounting of each Participant’s shares of funds withdrawn, and upon the collection of all or a part of such withdrawn funds, NCPA will credit back to each non-defaulting Participant the funds collected in proportion to such non- defaulting Participant’s share of funds initially withdrawn.

5.1.5 Emergency Additions. In the event that funds are withdrawn pursuant to Section 5.1.3, or if the Security Deposit held by NCPA is otherwise insufficient to allow for NCPA to pay any invoice, demand, request for further assurances by Seller, or claims, NCPA shall notify all Participants of the deficiency. In conjunction with such notice, NCPA shall send a special or emergency assessment invoice to the Participant or Participants that caused or are otherwise responsible for the deficiency. Each Participant of such an invoice shall pay to NCPA such assessment when and if assessed by NCPA within two (2) Business Days of the invoice date of the assessment, or shall consent to and direct NCPA to draw on any existing letter of credit Participant has established for such purposes. In the event that the Participant or Participants that caused or are otherwise responsible for the deficiency cannot, does not or will not pay to NCPA the special or emergency assessment within two (2) Business Days after the invoice date, NCPA shall immediately submit a special or emergency invoice to all remaining Participants, and such remaining Participants shall pay to NCPA such assessment within two (2) Business Days after the invoice date of Item 11
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18 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT the assessment, or shall consent to and direct NCPA to draw on any existing letter of credit that Participant has established for such purposes.

5.1.6 Security Deposit Interest. NCPA shall maintain a detailed accounting of each Participant’s Security Deposits, and withdrawals of such funds, held by NCPA. Security Deposits held by NCPA shall be invested by NCPA in accordance with the General Operating Reserve policies and investment policies adopted by the NCPA Commission. Interest earned on the Security Deposit funds shall be proportionately credited to the Participants in accordance with their weighted average balances held therein. Any Security Deposit losses caused by early termination of investments shall be allocated among the Participants in accordance with the General Operating Reserve provisions and guidelines approved by the Commission, as the same may be amended from time to time; provided, however, to the extent that either the General Operating Reserve provisions and guidelines do not apply or the Security Deposit is not adequate to cover the losses, then such losses shall be allocated among the Participants in accordance with their proportionate Security Deposit balances.

5.1.7 Return of Funds. Upon termination or a permitted withdrawal of a Participant in accordance with this Agreement, the affected Participant may apply to NCPA for the return of their share of Security Deposit funds ninety (90) days after the effective date of such termination or withdrawal. However, NCPA shall, in its sole but Item 11
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19 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT reasonable discretion, as determined by the NCPA General Manager, estimate the then outstanding liabilities of the Participant, including any estimated contingent liabilities and shall retain all such funds, if any, until all such liabilities have been fully paid or otherwise satisfied in full. After all such liabilities have been satisfied in full, as determined by NCPA’s General Manager, any remaining balance of the Participant’s share of the Security Deposit will be refunded to the Participant within sixty (60) days thereafter.

Section 6. Cooperation and Further Assurances. Each of the Parties agree to provide such information, execute and deliver any instruments and documents and to take such other actions as may be necessary or reasonably requested by any other Party which are consistent with the provisions of this Agreement and which do not involve the assumption of obligations other than those provided for in this Agreement, in order to give full effect to this Agreement and to carry out the intent of this Agreement. The Parties agree to cooperate and act in good faith in connection with obtaining any credit support required in order to satisfy the requirements of this Agreement.

Section 7. Participant Covenants and Defaults

7.1 Each Participant covenants and agrees: (i) to make payments to NCPA, from its Electric System Revenues, of its obligations under this Agreement as an operating expense of its Electric System; (ii) to fix the rates and charges for services provided by its Electric System, so that it will at all times have sufficient Revenues to meet the obligations Item 11
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20 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT of this Agreement, including the payment obligations; (iii) to make all such payments due NCPA under this Agreement whether or not there is an interruption in, interference with, or reduction or suspension of services provided under this Agreement, such payments not being subject to any reduction, whether by offset or otherwise, and regardless of whether any reasonable dispute exists; and (iv) to operate its Electric System, and the business in connection therewith, in accordance with Good Utility Practices.

7.2 Events of Default. An Event of Default under this Agreement shall exist upon the occurrence of any one or more of the following by a Participant (the “Defaulting Participant”):
(i) the failure of any Participant to make any payment in full to NCPA when due;
(ii) the failure of a Participant to perform any covenant or obligation of this Agreement where such failure is not cured within thirty (30) Calendar Days following receipt of a notice from NCPA demanding cure; provided, that this subsection shall not apply to any failure to make payments specified by subsection 7.2 (i)); (iii) if any representation or warranty of a Participant material to the services provided hereunder shall prove to have been incorrect in any material respect when made and the Participant does not cure the facts underlying such incorrect representation or warranty so that the representation or warranty becomes true and correct within thirty (30) Calendar Days after the date of receipt of notice from NCPA demanding cure; or Item 11
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21 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT (iv) if a Participant is in default or in breach of any of its covenants or obligations under any other agreement with NCPA and such default or breach is not cured within the time periods specified in such agreement.

7.3 Uncontrollable Forces. A Party shall not be considered to be in default in respect of any obligation hereunder if prevented from fulfilling such obligation by reason of Uncontrollable Forces; provided, that in order to be relieved of an Event of Default due to Uncontrollable Forces, a Party affected by an Uncontrollable Force shall:
(i) first provide oral notice to the General Manager using telephone communication within two (2) Business Days after the onset of the Uncontrollable Force, and provide subsequent written notice to the General Manager and all other Parties within ten (10) Business Days after the onset of the Uncontrollable Force, describing its nature and extent, the obligations which the Party is unable to fulfill, the anticipated duration of the Uncontrollable Force, and the actions which the Party will undertake so as to remove such disability and be able to fulfill its obligations hereunder; and (ii) use due diligence to place itself in a position to fulfill its obligations hereunder and if unable to fulfill any obligation by reason of an Uncontrollable Force such Party shall exercise due diligence to remove such disability with reasonable dispatch; provided, that nothing in this subsection shall require a Party to settle or compromise a labor dispute.

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22 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT

7.4 Cure of an Event of Default. An Event of Default shall be deemed cured only if such default shall be remedied or cured within the time periods specified in Section 7.2 above, as may be applicable, provided, however, upon request of the Defaulting Participant the Commission may waive the default at its sole discretion, where such waiver shall not be unreasonably withheld.

7.5 Remedies in the Event of Uncured Default. Upon the occurrence of an Event of Default which is not cured within the time limits specified in Section 7.2, without limiting other rights or remedies available under this Agreement, at law or in equity, and without constituting or resulting in a waiver, release or estoppel of any right, action or cause of action NCPA may have against the Defaulting Participant, NCPA may take any or all of the following actions:
(i) suspend the provision of services under this Agreement to such Defaulting Participant; or
(ii) demand that the Defaulting Participant provide further assurances to guarantee the correction of the default, including the collection of a surcharge or increase in electric rates, or such other actions as may be necessary to produce necessary Revenues to correct the default.

7.6 Effect of Suspension.

7.6.1 Generally. The suspension of this Agreement will not terminate, waive, or otherwise discharge any ongoing or undischarged liabilities, credits or Item 11
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23 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT obligations arising from this Agreement until such liabilities, credits or obligations are satisfied in full.

7.6.2 Suspension. If performance of all or any portion of this Agreement is suspended by NCPA with respect to a Participant in accordance with subsection

7.5(i), then such Participant shall pay any and all costs incurred by NCPA as a result of such suspension including reasonable attorney’s fees, the fees and expenses of other experts, including auditors and accountants, or other reasonable and necessary costs associated with such suspension and any portion of the Project Costs, scheduling and dispatch costs, and Administrative Services Costs that were not recovered from such Participant as a result of such suspension.

Section 8. Administration of Agreement

8.1 Commission. The Commission is responsible for the administration of this Agreement. Each Participant shall be represented by its Commissioner or their designated alternate Commissioner (“Alternate”) pursuant to the Joint Powers Agreement. Each Commissioner shall have authority to act for the Participant represented with respect to matters pertaining to this Agreement.

8.2 Forum. Whenever any action anticipated by this Agreement is required to be jointly taken by the Participants, such action shall be taken at regular or special meetings of the NCPA Commission.

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24 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT

8.3 Quorum. For purposes of acting upon matters that relate to administration of this Agreement, a quorum of the Participants shall consist of those Commissioners, or their designated Alternate, representing a numerical majority of the Participants.

8.4 Voting. Each Participant shall have the right to cast one vote with respect to matters pertaining to this Agreement. A unanimous vote of all Participants shall be required for action regarding: (i) any transfer of rights to a Third Party as described in Section 9 of this Agreement; and (ii) for matters related to any of the following actions as provided for in the ESSA: (a) exercising any early termination provisions as set forth in the ESSA, and (b) exercising any assignment rights as set forth in the ESSA. For all other matters pertaining to this Agreement, a majority vote of the Participants shall be required for action.

8.5 Storage Rate Adjustment Event. Section 2.5 of the ESSA permits the Seller to request a Contract Price adjustment from NCPA to address cost increases that Seller incurs as a result of a Change in Tax Law or Supply Chain Event. If the Proposed Contract Price Increase or Actual Contract Price Increase is equal to or less than the Proposed Contract Price Increase Cap, then as further set forth in Section 2.5 of the ESSA, such Proposed Contract Price Increase or Actual Contract Price Increase shall be deemed accepted by the Participants and NCPA, and the parties to the ESSA shall amend the Contract Price in the ESSA.

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25 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT If the Proposed Contract Price Increase and/or Actual Contract Price Increase is greater than the Proposed Contract Price Increase Cap by an amount that is less than or equal to fifteen percent (15.00%) of the original Contract Price, in aggregate, then the NCPA General Manager is hereby delegated authority by the Participants to approve the price increase based on their determination that (1) the Initial Independent Report or Final Independent Report supports the Proposed Contract Price Increase and/or Actual Contract Price Increase, and (2) the ESSA with the Proposed Contract Price Increase and/or Actual Contract Price Increase is still favorable when compared to current market conditions for similar products. The NCPA General Manager shall notify the Commission of the acceptable Proposed Contract Price Increase and/or Actual Contract Price Increase and associated modifications to the ESSA with the foregoing findings, if any, at the next available Commission meeting. If the Proposed Contract Price Increase and/or Actual Contract Price Increase is greater than fifteen percent (15.00%) of the original Contract Price, in aggregate, then the proposed modifications to the ESSA will be brought to the Commission for discussion and further action.

Section 9. Transfer of Rights by Participants

9.1 A Participant has the right to make transfers, sales, assignments and exchanges (collectively “transfers(s)”) of any portion of its Project Participation Percentage and rights thereto, subject to the approval provisions in Section 8.4 of this Agreement, provided that the transferee satisfies all applicable criterion in the ESSA. If a Participant Item 11
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26 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT desires to transfer a portion or its entire share of the Project for a specific time interval, or permanently, then NCPA will, if requested by such Participant, use its best efforts to transfer that portion of the Participant’s share of the Project.

9.2 Unless otherwise set forth in this Agreement, before a Participant may transfer an excess Project share pursuant to Section 9.1 to any person or entity other than a Participant, it shall give all other Participants the right to purchase the share on the same terms and conditions. Before a Participant may transfer an excess Project share pursuant to Section 9.1 to any person or entity other than a Member, it shall give all Members the right to purchase the share on the same terms and conditions. Such right shall be exercised within thirty (30) days of receipt of notice of said right.

No transfer shall relieve a Participant of any of its obligations under this Agreement except to the extent that NCPA receives payment of these obligations from a transferee.

Section 10. Term and Termination. This Agreement shall become effective when it has been duly executed by all Participants, and delivered to and executed by NCPA (the “Effective Date”). NCPA shall notify all Participants in writing of the Effective Date. The Term of this Agreement shall be coterminous with the ESSA, and shall commence on the Effective Date, and shall continue through the term of the ESSA.

Section 11. Withdrawal of Participants. No Participant may withdraw from this Agreement except as otherwise provided for herein.

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27 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT Section 12. Settlement of Disputes and Arbitration. The Parties agree to make best efforts to settle all disputes among themselves connected with this Agreement as a matter of normal business under this Agreement. The procedures set forth in Section 10 of the Power Management and Administrative Services Agreement shall apply to all disputes that cannot be settled by the Participants themselves; provided, that the provisions of Section 4.5 shall first apply to all disputes involving invoices prepared by NCPA.

Section 13. Miscellaneous

13.1 Confidentiality. The Parties will keep confidential all confidential or trade secret information made available to them in connection with this Agreement, to the extent possible, consistent with applicable laws, including the California Public Records Act.

Confidential or trade secret information shall be marked or expressly identified as such.

If a Party (“Receiving Party”) receives a request from a Third Party for access to, or inspection, disclosure or copying of, any other Party’s (the “Supplying Party”) confidential data or information, which the Receiving Party has possession of (“Disclosure Request”), then the Receiving Party shall provide notice and a copy of the Disclosure Request to the Supplying Party within three (3) Business Days after receipt of the Disclosure Request.

Within three (3) Business Days after receipt of such notice, the Supplying Party shall provide notice to the Receiving Party either:
(i) that the Supplying Party believes there are reasonable legal grounds for denying or objecting to the Disclosure Request, and the Supplying Party requests the Item 11
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28 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT Receiving Party to deny or object to the Disclosure Request with respect to identified confidential information. In such case, the Receiving Party shall deny the Disclosure Request and the Supplying Party shall defend the denial of the Disclosure Request at its sole cost, and it shall indemnify the Receiving Party for all costs associated with denying or objecting to the Disclosure Request. Such indemnification by the Supplying Party of the Receiving Party shall include all of the Receiving Party’s costs reasonably incurred with respect to denial of or objection to the Disclosure Request, including but not limited to costs, penalties, and the Receiving Party’s attorney’s fees; or (ii) that the Receiving Party may grant the Disclosure Request without any liability by the Receiving Party to the Supplying Party.

13.2 Indemnification and Hold Harmless. Subject to the provisions of Section

13.4, each Participant agrees to indemnify, defend and hold harmless NCPA and its Members, including their respective governing boards, officials, officers, agents, and employees, from and against any and all claims, suits, losses, costs, damages, expenses and liability of any kind or nature, including reasonable attorneys’ fees and the costs of litigation, including experts, to the extent caused by any acts, omissions, breach of contract, negligence (active or passive), gross negligence, recklessness, or willful misconduct of that Participant, its governing officials, officers, employees, subcontractors or agents, to the maximum extent permitted by law.

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29 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT

13.3 Several Liabilities. No Participant shall, in the first instance, be liable under this Agreement for the obligations of any other Participant or for the obligations of NCPA incurred on behalf of other Participants. Each Participant shall be solely responsible and liable for performance of its obligations under this Agreement, except as otherwise provided for herein. The obligation of each Participant under this Agreement is, in the first instance, a several obligation and not a joint obligation with those of the other Participants.

Notwithstanding the foregoing, the Participants acknowledge that any debts or obligations incurred by NCPA under this Agreement on behalf of any of them shall be borne solely by such Participants in proportion to their respective Project Participation Percentages, and not by non-Participant Members of NCPA, pursuant to Article IV, Section 3(b) of the Joint Powers Agreement.

In the event that a Participant should fail to pay its share of the debts or obligations incurred by NCPA as required by this Agreement, the remaining Participants shall, in proportion to their Project Participation Percentages, pay such unpaid amounts and shall be reimbursed by the Participant failing to make such payments.

13.4 No Consequential Damages. FOR ANY BREACH OF ANY PROVISION OF

THIS AGREEMENT FOR WHICH AN EXPRESS REMEDY OR MEASURE OF DAMAGES

IS PROVIDED IN THIS AGREEMENT, THE LIABILITY OF THE DEFAULTING PARTY

SHALL BE LIMITED AS SET FORTH IN SUCH PROVISION, AND ALL OTHER Item 11
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30 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT DAMAGES OR REMEDIES ARE HEREBY WAIVED. IF NO REMEDY OR MEASURE OF

DAMAGE IS EXPRESSLY PROVIDED, THE LIABILITY OF THE DEFAULTING PARTY

SHALL BE LIMITED TO ACTUAL DAMAGES ONLY AND ALL OTHER DAMAGES AND REMEDIES ARE HEREBY WAIVED. IN NO EVENT SHALL NCPA OR ANY

PARTICIPANT OR THEIR RESPECTIVE SUCCESSORS, ASSIGNS, REPRESENTATIVES,

DIRECTORS, OFFICERS, AGENTS, OR EMPLOYEES BE LIABLE FOR ANY LOST

PROFITS, CONSEQUENTIAL, SPECIAL, EXEMPLARY, INDIRECT, PUNITIVE, OR

INCIDENTAL LOSSES OR DAMAGES, INCLUDING LOSS OF USE, LOSS OF

GOODWILL, LOST REVENUES, LOSS OF PROFIT OR LOSS OF CONTRACTS EVEN IF

SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND

NCPA AND EACH PARTICIPANT EACH HEREBY WAIVES SUCH CLAIMS AND

RELEASES EACH OTHER AND EACH OF SUCH PERSONS FROM ANY SUCH LIABILITY.

The Parties acknowledge that California Civil Code section 1542 provides that: “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.” The Parties waive the provisions of section 1542, or other similar provisions of law, and intend that the waiver and release provided by this Section of this Agreement shall be fully enforceable despite its reference to future or unknown claims.

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31 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT

13.5 Waiver. No waiver of the performance by a Party of any obligation under this Agreement with respect to any default or any other matter arising in connection with this Agreement shall be effective unless given by the Commission or the governing body of a Participant, as applicable. Any such waiver by the Commission in any particular instance shall not be deemed a waiver with respect to any subsequent performance, default or matter.

13.6 Amendments. Except where this Agreement specifically provides otherwise, this Agreement may be amended only by written instrument executed by the Parties with the same formality as this Agreement.

13.7 Assignment of Agreement.

13.7.1 Binding Upon Successors. This Agreement shall inure to the benefit of and shall be binding upon the respective successors and assignees of the Parties to this Agreement.

13.7.2 No Assignment. Neither this Agreement, nor any interest herein, shall be transferred or assigned by a Party hereto except with the consent in writing of the other Parties hereto, which consent shall not be unreasonably withheld.

13.8 Severability. In the event that any of the terms, covenants or conditions of this Agreement or the application of any such term, covenant or condition, shall be held invalid as to any person or circumstance by any court having jurisdiction, all other terms, covenants or conditions of this Agreement and their application shall not be affected Item 11
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32 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT thereby, but shall remain in force and effect unless the court holds that such provisions are not severable from all other provisions of this Agreement.

13.9 Governing Law. This Agreement shall be interpreted, governed by, and construed under the laws of the State of California.

13.10 Headings. All indices, titles, subject headings, section titles and similar items are provided for the purpose of convenience and are not intended to be inclusive, definitive, or affect the meaning of the contents of this Agreement or the scope thereof.

13.11 Notices. Any notice, demand or request required or authorized by this Agreement to be given to any Party shall be in writing, and shall either be personally delivered to a Participant’s Commissioner or Alternate, and to the General Manager, or shall be transmitted to the Participant and the General Manager at the addresses shown on the signature pages hereof. The designation of such addresses may be changed at any time by written notice given to the General Manager who shall thereupon give written notice of such change to each Participant. All such notices shall be deemed delivered when personally delivered, two (2) Business Days after deposit in the United States mail first class postage prepaid, or on the first Business Day following delivery through electronic communication.

13.12 Warranty of Authority. Each Party represents and warrants that it has been duly authorized by all requisite approval and action to execute and deliver this Agreement and that this Agreement is a binding, legal, and valid agreement enforceable in accordance Item 11
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33 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT with its terms. Upon execution of this Agreement, each Participant shall deliver to NCPA a resolution of the governing body of such Participant evidencing approval of and authority to enter into this Agreement.

13.13 Counterparts. This Agreement may be executed in any number of counterparts, and each executed counterpart shall have the same force and effect as an original instrument and as if all the signatories to all of the counterparts had signed the same instrument. Any signature page of this Agreement may be detached from any counterpart of this Agreement without impairing the legal effect of any signatures thereon, and may be attached to another counterpart of this Agreement identical in form hereto but having attached to it one or more signature pages.

13.14 Venue. In the event that a Party brings any action under this Agreement, the Parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Placer or in the United States District Court for the Eastern District of California.

13.15 Attorneys’ Fees. If a Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provisions of this Agreement, then each Party shall bear its own fees and costs, including attorneys’ fees, associated with the action.

13.16 Counsel Representation. Pursuant to the provisions of California Civil Code Section 1717 (a), each of the Parties were represented by counsel in the negotiation and Item 11
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34 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT execution of this Agreement and no one Party is the author of this Agreement or any of its subparts. Those terms of this Agreement which dictate the responsibility for bearing any attorney’s fees incurred in arbitration, litigation or settlement in a manner inconsistent with the provisions of Section 13.2 were intentionally so drafted by the Parties, and any ambiguities in this Agreement shall not be interpreted for or against a Party by reason of that Party being the author of the provision.

13.17 No Third Party Beneficiaries. Nothing contained in this Agreement is intended by the Parties, nor shall any provision of this Agreement be deemed or construed by the Parties, by any third person or any Third Parties, to be for the benefit of any Third Party, nor shall any Third Party have any right to enforce any provision of this Agreement or be entitled to damages for any breach by the Parties of any of the provisions of this Agreement.

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35 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT IN WITNESS WHEREOF, NCPA and each Participant have, by the signature of its duly authorized representative shown below, executed and delivered a counterpart of this Agreement.

NORTHERN CALIFORNIA

POWER AGENCY
651 Commerce Drive
Roseville, CA 95678
_____________________________
By: Randy S. Howard
Title: General Manager
Date:

Approved as to form:
_____________________________
By: Jane E. Luckhardt
Its: General Counsel
Date:

Attestation (if applicable):
_____________________________
By:__________________________
Its:

Date:

CITY OF SANTA CLARA
1500 Warburton Avenue
Santa Clara, CA 95050
_____________________________
By:__________________________
Title: __________________________
Date:

Approved as to form:
_____________________________
By:__________________________
Its: City Attorney
Date:

Attestation (if applicable):
_____________________________
By:__________________________
Its:

Date:

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36 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT

CITY OF ALAMEDA
2000 Grand Street
P.O. Box H
Alameda, CA 94501
_____________________________
By:__________________________
Title: ________________________
Date:

Approved as to form:
_____________________________
By:__________________________
Its: City Attorney
Date:

Attestation (if applicable)
_____________________________
By:__________________________
Its:

Date:

CITY OF LOMPOC
100 Civic Center Plaza
Lompoc, CA 93436
_____________________________
By:__________________________
Title: ________________________
Date:

Approved as to form:
_____________________________
By:

Its: City Attorney__________________
Date:

Attestation (if applicable)
_____________________________
By:__________________________
Its:

Date:

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CITY OF PALO ALTO
250 Hamilton Avenue
Palo Alto, CA 94301
_____________________________
By:__________________________
Title: ________________________
Date:

Approved as to form:
_____________________________
By:

Its: City Attorney__________________
Date:

Attestation (if applicable)
_____________________________
By:__________________________
Its:

Date:

CITY OF REDDING
777 Cypress Avenue
Redding, CA 96001
_____________________________
By:__________________________
Title: ________________________
Date:

Approved as to form:
_____________________________
By:

Its: City Attorney__________________
Date:

Attestation (if applicable)
_____________________________
By:__________________________
Its:

Date:

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38 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT

CITY OF SHASTA LAKE
4477 Main Street
Shasta Lake, CA 96019
_____________________________
By:__________________________
Title: ________________________
Date:

Approved as to form:
_____________________________
By:

Its: City Attorney__________________
Date:

Attestation (if applicable)
_____________________________
By:__________________________
Its:

Date:____________________________

CITY OF UKIAH
300 Seminary Avenue
Ukiah, CA 95482
_____________________________
By:__________________________
Title: ________________________
Date:

Approved as to form:
_____________________________
By:

Its: City Attorney__________________
Date:

Attestation (if applicable)
_____________________________
By:__________________________
Its:

Date:____________________________
Item 11
Attachment A - Third Phase
Agreement with NCPA for
the Trolley BESS Project

Item 11: Staff Report
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39 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT CITY OF OAKLAND, acting
by and through its
Board of Port Commissioners
530 Water Street
Oakland, CA 94607
_____________________________
By:__________________________
Title: ________________________
Date:

Approved as to form:
_____________________________
By:

Its: City Attorney__________________
Date:

Attestation (if applicable)
_____________________________
By:__________________________
Its:

Date:____________________________
Item 11
Attachment A - Third Phase
Agreement with NCPA for
the Trolley BESS Project

Item 11: Staff Report
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40 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT

EXHIBIT A

PROJECT PARTICIPATION PERCENTAGES
Table 1 of this Exhibit A lists the Members, and their respective initial Project Participation Percentage share of the Project, that are expected to execute this Agreement by signature, and therefore become Participants (the “Initial Participants):

On the Effective Date of the Agreement, NCPA shall prepare Table 2 to reflect the Final Project Participation Percentages of each Participant, and such Table 2 will be added to this Exhibit A as an amendement to this Agreement. NCPA shall provide Notice to each Participant of Table 2 that is incorporated into this Exhibit A as described herein.

Pursuant to Section 5 of Exhibit B of the ESSA, if, at Commercial Operation, the Installed Battery Capacity is less than one hundred percent (100%) of the Storage Contract Capacity, Seller shall have one hundred twenty (120) days after the Commercial Operation Date to install additional capacity such that the Installed Battery Capacity is equal to (but not greater than) the one hundred percent (100%) of the Storage Contract Capacity. If Seller fails to construct the Storage Contract Capacity by such date, Seller shall pay NCPA Item 11
Attachment A - Third Phase
Agreement with NCPA for
the Trolley BESS Project

Item 11: Staff Report
Pg.
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41 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT Capacity Damages, and for each MW (or portion thereof) that the Storage Contract Capacity exceeds the Installed Battery Capacity, the Project Participation Share for the Participants shall be automatically adjusted and reduced, on a pro rata basis, to equal to actual amount of Installed Battery Capacity.

Item 11
Attachment A - Third Phase
Agreement with NCPA for
the Trolley BESS Project

Item 11: Staff Report
Pg.
53 Packet Pg. 421 of 445

42 THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT

EXHIBIT B
Energy Storage Service Agreement
The Energy Storage Service Agreement between Trolley Pass Project LLC and Northern California Power Agency has been attached to this Agreement as Exhibit B.

Item 11
Attachment A - Third Phase
Agreement with NCPA for
the Trolley BESS Project

Item 11: Staff Report
Pg.
54 Packet Pg. 422 of 445

City Council
Staff Report
From: City Clerk
Report Type: ACTION ITEMS
Lead Department: City Clerk
Meeting Date: September 15, 2025
Report #:2508-5127
TITLE
Designation of Voting Delegate and Alternate for the League of California Cities Annual 2025 Conference, to be held October 8-10, 2025, in Long Beach, California

RECOMMENDATION
The City Council should consider attendee Vice Mayor Veenker and designate a voting delegate for the 2025 League of California Cities Annual Conference.

BACKGROUND
The League’s 2025 Annual Conference is scheduled for October 8-10, 2025 in Long Beach, California. Every year, the League of California Cities convenes a member-driven General Assembly at the Cal Cities Annual Conference and Expo. The General Assembly is an important opportunity where city officials can directly participate in the development of Cal Cities policy.

Taking place on Friday, October 10, the General Assembly is comprised of voting delegates appointed by each member city; every city has one voting delegate. The appointed voting delegate plays an important role during the General Assembly by representing our city and voting on resolutions.

To cast a vote during the General Assembly, the City Council must designate a voting delegate and up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity. Voting delegates may either be an elected or appointed official. At this time, Vice Mayor Veenker is the sole Council member that has expressed interest in attending and is registered to attend the 2025 Annual Conference.

Please find attached correspondence received from the League of California Cities outlining the voting designations and process for the General Assembly. Staff anticipates the designated Item 12
Item 12 Staff Report

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voting delegate(s) to use the City of Palo Alto’s 2025 Federal and State Legislative Guidelines1 to help inform the City’s position on items to be voted on at the General Assembly meeting.

FISCAL/RESOURCE IMPACT
There is no fiscal impact associated with this item.

ATTACHMENTS
Attachment A: 2025 Cal Cities Voting Delegate Information Memo APPROVED BY:

Mahealani Ah Yun, City Clerk
1 City of Palo Alto’s 2025 Federal and State Legislative Guidelines:
https://www.paloalto.gov/files/assets/public/v/1/city-manager/legislation/2025-legislative-guidelines.pdf Item 12
Item 12 Staff Report

Item 12: Staff Report
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1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org

DATE: Wednesday, July 16, 2025

TO: Mayors, Council Members, City Clerks, and City Managers

RE: DESIGNATION OF VOTING DELEGATES AND ALTERNATES
League of California Cities Annual Conference and Expo, Oct. 8-10, 2025 Long Beach Convention Center

Every year, the League of California Cities convenes a member-driven General Assembly at the Cal Cities Annual Conference and Expo. The General Assembly is an important opportunity where city officials can directly participate in the development of Cal Cities policy.

Taking place on Oct. 10, the General Assembly is comprised of voting delegates appointed by each member city; every city has one voting delegate. Your appointed voting delegate plays an important role during the General Assembly by representing your city and voting on resolutions.

To cast a vote during the General Assembly, your city must designate a voting delegate and up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity. Voting delegates may either be an elected or appointed official.

Action by Council Required. Consistent with Cal Cities bylaws, a city’s voting delegate and up to two alternates must be designated by the city council. Please note that designating the voting delegate and alternates must be done by city council action and cannot be accomplished by individual action of the mayor or city manager alone.

Following council action, please submit your city’s delegates through the online submission portal by Wed., Sept. 24. When completing the Voting Delegate submission form, you will be asked to attest that council action was taken. You will need to be signed in to your My Cal Cities account when submitting the form.

Submitting your voting delegate form by the deadline will allow us time to establish voting delegate/alternate records prior to the conference and provide pre-conference communications with voting delegates.

Conference Registration Required. The voting delegate and alternates must be registered to attend the conference. They need not register for the entire conference; they may register for Friday only. Conference registration is open on the Cal Cities website.

Council Action Advised by September 24, 2025
Item 12
Attachment A - 2025 Cal
Cities Voting Delegate
Information Memo

Item 12: Staff Report
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For a city to cast a vote, one voter must be present at the General Assembly and in possession of the voting delegate card and voting tool. Voting delegates and alternates need to pick up their conference badges before signing in and picking up the voting delegate card at the voting delegate desk. This will enable them to receive the special sticker on their name badges that will admit the voting delegate into the voting area during the General Assembly.

Please view Cal Cities’ event and meeting policy in advance of the conference.

Transferring Voting Card to Non-Designated Individuals Not Allowed. The voting delegate card may be transferred freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the General Assembly, they may not transfer the voting card to another city official.

Seating Protocol during General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.

The voting delegate desk, located in the conference registration area of the Long Beach Convention Center in Long Beach, will be open at the following times: Wednesday, Oct. 8, 8:00 a.m.-6:00 p.m. and Thursday, Oct. 9, 7:30 a.m.-4:00 p.m. On Friday, Oct. 10, the voting delegate desk will be open at the General Assembly, starting at 7:30 a.m., but will be closed during roll calls and voting.

The voting procedures that will be used at the conference are attached to this memo.

Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city’s voting delegate and alternates.

Once again, thank you for submitting your voting delegate and alternates by Wednesday, Sept. 24. If you have questions, please contact Zach Seals at [email protected].

A
ttachments:
• General Assembly Voting Guidelines
• Information Sheet: Cal Cities Resolutions and the General Assembly Item 12
Attachment A - 2025 Cal
Cities Voting Delegate
Information Memo

Item 12: Staff Report
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1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org

General Assembly Voting Guidelines

1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to Cal Cities policy.

2. Designating a City Voting Representative. Prior to the Cal Cities Annual Conference and Expo, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the voting delegate form provided to the Cal Cities Credentials Committee.

3. Registering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the voting delegate desk in the conference registration area. Voting delegates and alternates must sign in at the voting delegate desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the General Assembly.

4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city’s voting card by providing a signature to the credentials committee at the voting delegate desk, may sign petitions to initiate a resolution.

5. Voting. To cast the city's vote, a city official must have in their possession the city's voting card and voting tool; and be registered with the credentials committee. The voting card may be transferred freely between the voting delegate and alternates but may not be transferred to another city official who is neither a voting delegate nor alternate.

6. Voting Area at General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.

7. Resolving Disputes. In case of dispute, the credentials committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the General Assembly.

Item 12
Attachment A - 2025 Cal
Cities Voting Delegate
Information Memo

Item 12: Staff Report
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Sixty days before the
Annual Conference
and Expo, Cal Cities
members may submit
policy proposals on
issues of importance
to cities. The resolution must
have the concurrence of at least
five additional member cities or
individual members.

How it works: Cal Cities
Resolutions and the General Assembly
General Assembly
General Resolutions Policy Committees
Developing League of California Cities policy is a dynamic process that engages a wide range of members to ensure Cal Cities represents cities with one voice. These policies directly guide Cal Cities’ advocacy to promote local decision-making, and lobby against statewide policies that erode local control.

The resolutions process and General Assembly is one way that city officials can directly participate in the development of Cal Cities policy. If a resolution is approved at the General Assembly, it becomes official Cal Cities policy. Here’s how resolutions and the General Assembly work.

The petitioned
resolution is an
alternate method
to introduce policy
proposals during
the annual conference. The
petition must be signed by
voting delegates from 10% of
member cities, and submitted to
the Cal Cities President at least
24 hours before the beginning
of the General Assembly.

Petitioned Resolutions
The Cal Cities
President assigns
general resolutions
to policy committees
where members
review, debate, and recommend
positions for each policy proposal.

Recommendations are forwarded
to the Resolutions Committee.

Who’s who
The Resolutions Committee
includes representatives
from each Cal Cities
diversity caucus, regional
division, municipal
department, and policy
committee, as well as
individuals appointed by
the Cal Cities president.

Voting delegates
are appointed by each
member city; every city
has one voting delegate.

The General Assembly is a
meeting of the collective
body of all voting
delegates —one from
every member city.

Seven policy committees
meet throughout the year
to review and recommend
positions to take on bills
and regulatory proposals.

Policy committees include
members from each Cal
Cities diversity caucus,
regional division, and
municipal department,
as well as individuals
appointed by the Cal
Cities president.

During the General Assembly, voting delegates
debate and consider general and petitioned
resolutions forwarded by the Resolutions
Committee. Potential Cal Cities bylaws
amendments are also considered at this meeting.

Cal Cities policy
development is a member-
informed process,
grounded in the voices and
experiences of city officials
throughout the state.

For more information visit www.calcities.org/general-assembly Prior to the Annual Conference and Expo
Resolutions Committee
The Resolutions
Committee considers
all resolutions. General
Resolutions approved1 by
either a policy committee
or the Resolutions Committee are next
considered by the General Assembly.

General resolutions not approved, or
referred for further study by both a
policy committee and the Resolutions
Committee do not go to the General
Assembly. All Petitioned Resolutions
are considered by the General
Assembly, unless disqualified.2
During the Annual Conference and Expo
1 The Resolution Committee can amend a general resolution prior to sending it to the General Assembly. 2 Petitioned Resolutions may be disqualified by the Resolutions Committee according to Cal Cities Bylaws Article VI. Sec. 5(f).

Item 12
Attachment A - 2025 Cal
Cities Voting Delegate
Information Memo

Item 12: Staff Report
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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: Administrative Services
Meeting Date: September 15, 2025
Report #:2503-4252
TITLE
Semi-annual Reports of Contracts Awarded by the City Manager, Procurement Officer or Other Designated Employees for the period of January 1, 2025 through June 30, 2025; CEQA Status- Not a Project.

RECOMMENDATION
This is an informational report and no action is required.

DISCUSSION
Palo Alto Municipal Code (PAMC) Section 2.30.710(a)1 requires the City Manager to provide a semi-annual report to Council consisting of contracts awarded by the City Manager, Procurement Officer or other designated employees for:

1. Goods contracts $85,000 through $250,000 per year (Attachment A), and

2. Professional and General Services $25,000 through $85,000 and Public Works Contracts $85,000 through $250,000 per year (Attachment B).

The contracts in Attachment A consist of nine (9) distinct awards for goods, and the contracts in Attachment B consist of seventy-seven (77) distinct awards for a range of services. These awards are a core element of the efficient and effective provision of services by the City to our community and reflect extensive coordination and prudent decision-making.

1 Palo Alto Municipal Code 2.30.710 City Manager reports https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-62183 Item A
Item A Staff Report

Item A: Staff Report
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The PAMC section that sets forth the authority designated by Council to the Procurement Officer to award and sign contracts is PAMC 2.30.2003 and to the City Manager to award and sign contracts is PAMC 2.30.2104.

ENVIRONMENTAL REVIEW
This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably foreseeable indirect physical change in the environment.

ATTACHMENTS
Attachment A: Goods Contracts Awarded $85,000 through $250,000 per year Attachment B: Professional and General Services $25,000 through $85,000 per year and Public Works Contracts $85,000 through $250,000 per year
APPROVED BY:

Lauren Lai, Administrative Services Director
3 Palo Alto Municipal Code 2.30.200 Procurement officer contract award authority https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-61873 4 Palo Alto Municipal Code 2.30.210 City Manager contract award authority https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-61881 Item A
Item A Staff Report

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ATTACHMENT A
Goods Contracts Awarded $85,000 through $250,000 per year January 1, 2025 through June 30, 2025
Contract Awarded To Award Date Award Amount
Bidding Exemption or
Number of Bids
Sent/Received
*PAMC 2.30.360
Description
COOPER POWER SYSTEMS 6/16/2025 $145,817.96 3457/3 3 ‐Phase Pad Mounted Distribution Voltage DASHER TECHNOLOGIES INC 2/20/2025 $189,154.23 2.30.360(j) HPE Aruba Networking CX 6300M GOLDEN GATE SYSTEMS LLC 2/20/2025 $201,307.31 2.30.360(j) Purchase of 150 HP EliteBook 640 Notebook PC MEIDEN AMERICA SWITCHGEAR INC 6/23/2025 $125,351.89 2.30.360(d) COP 60kV Circuit Breaker PACE SUPPLY CORP 5/21/2025 $142,268.01 3485/6 Hydrant Steamer #76 PACIFIC FITNESS PRODUCTS LLC 1/22/2025 $103,723.87 2.30.360(j) Fitness Equipment for the Public Safety Building TRANE US INC 4/14/2025 $151,425.86 2.30.360(j) HVAC Equipment (7 units) TROJAN TECHNOLOGIES CORP 4/1/2025 $88,271.32 2.30.360 (e) UV Lamp, UV System WINNER CHEVROLET INC 4/17/2025 $176,647.47 416/4 Purchase of Three Chevy Silverado EV Crew Cab Trucks *PAMC 2.30.360
https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-61990

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Palo Alto City CouncilSeptember 15, 2025

Palo Alto City Council
September 15, 2025