City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: September 15, 2025
Report #:2504-4566
TITLE
FIRST READING: Adoption of Four Ordinances, as Recommended by the Retail Committee, to Amend and Reorganize Stormwater and Wastewater Management Requirements by Amending PAMC Chapter 16.09 (Sewer Use Ordinance), Amending Chapter 16.11 (Stormwater Pollution Prevention), Adding New Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease), and Adding New Chapter
16.66 (Hauled Liquid Waste); Adoption of Two Resolutions Establishing Regulations to Implement PAMC Chapters 16.11 and 16.13; Adoption of a Resolution Amending and Restating the Administrative Penalty Schedule and Civil Penalty Schedules for Certain Violations of the PAMC; CEQA Status – Exempt under CEQA Guidelines Section 15308
RECOMMENDATION
The Retail Committee and Staff recommend that City Council adopt the:
1. Ordinance amending PAMC Chapter 16.09 (Sewer Use Ordinance) (Attachment B);
2. Ordinance amending PAMC Chapter 16.11 (Stormwater Pollution Prevention) (Attachment C);
3. Resolution creating regulations to implement PAMC Chapter 16.11 (Attachment D);
4. Ordinance adding new PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease) (Attachment E);
5. Resolution creating regulations to implement PAMC Chapter 16.13 (Attachment F);
6. Ordinance adding new PAMC Chapter 16.66 (Hauled Liquid Waste) (Attachment G); and
7. Resolution amending and restating the Administrative Penalty Schedule and Civil Penalty Schedules for Certain Violations of the PAMC (Attachment H).
EXECUTIVE SUMMARY
The City’s Public Works Watershed Protection team oversees regulatory compliance for sewer use and stormwater permits, including enforcing the San Francisco Bay Regional Water Quality Control Board permit requirements for businesses, industry, and residents to prevent illicit discharges of pollutants into creeks and the San Francisco Bay. The City’s requirements for stormwater and wastewater management are currently codified in Chapters 16.09 (Sewer Use Ordinance) and 16.11 (Stormwater Pollution Prevention) of the PAMC.
This item primarily consists of edits to simplify and reorganize existing requirements into four separate PAMC chapters for easier use and reference, updates that formalize existing City processes and align with new state regulations and permit requirements, and recommended changes based on staff experience and best practices in the field of stormwater and FOG management. Proposed major and new changes to each PAMC Chapter are summarized in the Analysis section below, and additional detail is captured in Attachment A: Summary of Proposed Changes to all Chapters. Those items are identified in this report. Finally, staff has compiled regulatory handbooks to help local businesses who are required to comply with regulations in Chapters 16.11 and 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of FOG).
Public feedback was solicited through extensive outreach and five public meetings. Staff also presented the proposed Ordinance changes at the June 18, 2025 Retail Committee meeting.
Several comments were received from public meetings and during the public comment process that resulted in clarifying edits to the proposed revisions for Chapter 16.09 (Sewer Use Ordinance); no significant comments were received on the other proposed PAMC Chapters.
On August 20, 2025 the Retail Committee heard this item and unanimously recommended that Council adopt the Staff recommendation.1
BACKGROUND
The City of Palo Alto owns and operates the Regional Water Quality Control Plant (RWQCP) that treats wastewater collected from Palo Alto, Mountain View, Stanford University, Los Altos, Los Altos Hills, and the East Palo Alto Sanitary District. Wastewater from these jurisdictions is treated by the RWQCP prior to discharge to the San Francisco Bay (Bay). Stormwater in Palo Alto flows directly to creeks and/or the Bay without treatment. Both wastewater and stormwater discharges are regulated by the United States Environmental Protection Agency via National Pollutant Discharge Elimination System (NPDES) permits issued by the San Francisco Bay Regional Water Quality Control Board (Water Board) and associated regulations. In addition, management of fats, oils, and grease (FOG) is also regulated by the California Plumbing Code. The City is charged with enforcing permit and other regulatory requirements to 1 Retail Committee voted (3) in support of recommending City Council approval; https://www.paloalto.gov/Departments/City-Clerk/City-Council-Committees/Retail-Ad-Hoc-Committee keep pollution from entering the receiving waters through the storm drain and sanitary sewer systems.
Current requirements for sewer use, management of FOG, and hauled liquid waste are captured in PAMC Chapter 16.09 (Sewer Use Ordinance).2 Stormwater pollution prevention requirements are captured in both the existing Sewer Use Ordinance and PAMC Chapter 16.11 (Stormwater Pollution Prevention).3 Updates to these PAMC Chapters are required at this time to ensure City compliance with current state and federal regulations and best practices in the fields of stormwater and FOG management, to codify existing City practices, and to improve clarity and organization of the various requirements in the PAMC.
ANALYSIS
To make it easier for regulated businesses to understand the regulations that impact them, the proposed revisions would result in four separate PAMC Chapters for easier use and reference:
Amended PAMC Chapter 16.09: Sewer Use Ordinance;
Amended PAMC Chapter 16.11: Stormwater Pollution Prevention; Proposed new PAMC Chapter 16.13: Requirements for Food Facilities Related to Water Pollution Prevention and Management of FOG; and
Proposed new PAMC Chapter 16.66: Hauled Liquid Waste.
Proposed major and new changes to each PAMC Chapter are summarized below, and additional detail is captured in Attachment A: Summary of Proposed Changes to all Chapters.
Chapter 16.09: Sewer Use Ordinance (Attachment B)
The Sewer Use Ordinance (Chapter 16.09) regulates industrial and commercial users’ discharges into the sanitary sewer system. Proposed revisions to the existing PAMC Chapter 16.09 (Sewer Use Ordinance) include:
Removal of existing requirements for stormwater pollution prevention (now in PAMC
16.11), FOG (now in PAMC 16.13), and hauled liquid waste (now in PAMC 16.66); Incorporation of requirements and recommendations from a 2022 RWQCP Pretreatment Program audit conducted by the State Water Resources Control Board; Incorporation of recommendations of the United States Environmental Protection Agency’s Model Pretreatment Ordinance that meets federal requirements; and 2 Palo Alto Municipal Code, Chapter 16.09, Sewer Use Ordinance, July 22, 2010; https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-71241#JD_Chapter 16.09 3 Palo Alto Municipal Code, Chapter 16.11, Stormwater Pollution Prevention Ordinance, July 4, 2019; https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-72096 Clarification, consolidation, and reorganization of text to codify current City implementation practices and enhance use.
Significant changes from the current PAMC Chapter 16.09 include:
Addition of ability of City to use general discharge permits in place of individual discharge permits under proposed Section 16.09.075, Discharge Permit Required; Addition of provisions for federal requirements, non-significant categorical industrial users, and electronic reporting under proposed Section 16.09.120, Reporting & Certification Requirements for Industrial Users;
Replacement of five-day reporting requirement with a 30-day advance notice of changes under proposed Section 16.09.130, Reports of Changed Conditions & Final Closure; and Addition of provisions for pools less than 20,000 gallons to discharge without a permit under proposed Section 16.09.180, Requirements for Exceptional Waste.
Chapter 16.11: Stormwater Pollution Prevention (Attachment C) Business, industry, and residents help reduce pollutants entering the City’s storm drain system, creeks, and the Bay by complying with stormwater pollution prevention requirements. Chapter
16.11 codifies requirements for stormwater pollution prevention, including requirements issued by the Water Board in the 2022 Municipal Regional Stormwater National Pollutant Discharge Elimination System Permit (MRP). Proposed revisions to the existing PAMC Chapter
16.11 (Stormwater Pollution Prevention) include:
Addition of existing requirements for stormwater pollution prevention that were removed from PAMC Chapter 16.09;
Incorporation of requirements from the 2022 MRP issued by the San Francisco Bay Regional Water Quality Control Board and additional requirements and procedures that further support permit compliance; and
Creation of related regulations for clarification of text and to codify current City implementation practices. The proposed regulatory handbook, entitled “Palo Alto Regulations for Stormwater Pollution Prevention” is available for review at the link below and will be available on the City’s website upon adoption. 4 The proposed resolution adopting the regulations is Attachment D to this report. 4 Proposed Palo Alto Regulations for Stormwater Pollution Prevention; https://www.paloalto.gov/files/assets/public/v/1/city-clerk/staff-report-links/stormwater-management- regulations-0290172.pdf
Significant changes from the current PAMC Chapter 16.11 include the following new requirements necessary for the City to comply with the MRP (see Attachment A for a summary of changes):
Proposed Section 16.11.300, Mobile Businesses (in alignment with the MRP), clarifies that mobile businesses and those businesses and residents that contract with them are responsible for their non-stormwater discharges to City streets and the City storm drain system. Identified responsible parties may be required to cover City costs for conducting clean-ups and disposal of discharges and may be subject to citations, particularly for continued non-compliance;
Proposed Section 16.11.320, Trash Load Reductions (in alignment with the MRP), requires that properties with private stormwater drainage systems connected directly to the City’s storm drain system establish controls to prevent discharges of trash. Existing business may comply by implementing trash control practices like sweeping and trash pick-up, or by installing and maintaining a trash capture device in each private inlet.
Compliance will be evaluated by City inspectors; and
Proposed Section 16.11.320, Trash Load Reductions (proposed by City staff to further MRP compliance regarding trash control), also requires that all development projects with private stormwater drain systems install trash capture devices during construction.
This generally applies to commercial and multi-family properties with parking lots or large structures.
Where compliance with the requirements of Chapter 16.11 would be infeasible, the Public Works Director may approve an alternate compliance plan on a case-by-case basis.
Chapter 16.13: Requirements for Food Facilities Related to Water Pollution Prevention and Management of FOG (Attachment E)
Chapter 16.13 consolidates FOG management requirements for local restaurants and other food facilities in a single new chapter. It includes existing and new requirements that reduce stormwater pollution and FOG discharges into the sanitary sewer system, which can cause sanitary sewer overflows. Proposed revisions to requirements currently codified in PAMC Chapter 16.09 (Sewer Use Ordinance) include:
Creation of a new PAMC Chapter (16.13) consolidating requirements for the management of FOG generated from food facilities;
Incorporation of requirements from the 2022 MRP issued by the San Francisco Bay Regional Water Quality Control Board and additional requirements that further support permit compliance; and
Creation of related regulations for clarification of text and to codify current City implementation practices. The proposed regulatory handbook, entitled “Palo Alto Regulations for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease” is available for review at the link below and will be available on the City’s website upon adoption.5 The proposed resolution adopting the regulations is Attachment F to this report.
Significant changes to the current FOG requirements in PAMC Chapter 16.09 include the following (see Attachment A for a summary of changes):
Proposed Section 16.13.140, Requirements for Installing or Replacing Existing Grease Control Devices (GCDs), establishes requirements for the devices that remove FOG from wastewater to prevent clogged private plumbing and discharges to the sanitary sewer system. A primary update is that major food facility development projects will be required to connect all kitchen and bar fixtures to one or more GCDs (i.e., the number of GCDs will be determined by the allowed configuration of an individual food facility); Proposed Section 16.13.170, Waste Oil Storage Requirements for Food Facilities, requires secondary containment for waste oil (e.g., used fryer oil) containers stored outdoors, as waste oil is considered hazardous once it comes in contact with the environment. This proposed change would address community requests for cleaner commercial areas that reduce favorable conditions for rodents and address unsightly and odorous FOG storage and would protect sensitive creek environments from FOG- related sanitary sewer overflows. This requirement is in line with the California Fire Code and Palo Alto Municipal Code Title 17, Hazardous Materials Storage and would go into effect July 1, 2026; and
The associated regulations include requirements that would apply to projects that require installing a new GCD or replacing an existing GCD. Such requirements include prohibiting sharing of new GCDs, requiring wastewater discharge through GCDs only by means of gravity, requiring two-way GCD lateral cleanouts, prohibiting materials that are susceptible to corrosion in low pH environments, and new sizing requirements for hydromechanical grease interceptors. These changes are consistent with emerging FOG management practices and are recommended based on staff experience addressing sewer backups and overflows due to GCDs that do not meet these standards. They would be implemented through local amendments to the CA Plumbing Code during the fall 2025 update of the City’s Building Regulations (Title 16). It is anticipated that they will be effective January 1, 2026.
Where compliance with the requirements of Chapter 16.13 would be infeasible, the Public Works Director may approve an alternate compliance plan on a case-by-case basis. 5 Proposed Palo Alto Regulations for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease; http://paloalto.gov/files/assets/public/v/1/city-clerk/staff-report-links/fog-regulations- 0290173-corrected.pdf
Chapter 16.66: Hauled Liquid Waste (Attachment G)
Businesses that pump out septic tanks or portable toilet waste (i.e., liquid waste) must comply with proper discharge requirements at the Regional Water Quality Control Plant. Chapter 16.66 is a new chapter for haulers of liquid waste. Proposed revisions to current hauled liquid waste requirements in the current PAMC Chapter 16.09 (Sewer Use Ordinance), include:
Creation of a new PAMC Chapter (16.66) consolidating requirements related to discharge of hauled liquid waste at the Regional Water Quality Control Plant; Inclusion of existing requirements for hauled liquid waste that were removed from PAMC Chapter 16.09;
Incorporation of recommendations of the United States Environmental Protection Agency’s Model Pretreatment Ordinance; and
Clarification, consolidation, and reorganization of text to codify current City implementation practices and enhance use.
Significant changes from the current hauled liquid waste requirements in PAMC Chapter 16.09 include the addition of the following new sections that codify current City implementation practices and are not anticipated to result in programmatic changes:
Section 16.66.060, Hauled Liquid Waste Discharge Permit Application Procedure; Section 16.66.110, Insurance;
Section 16.66.120, Hauled Liquid Waste Discharge Permit Modification; Section 16.66.130, Hauled Liquid Waste Discharge Permit Suspension or Revocation; Section 16.66.140, Hauled Liquid Waste Discharge Permit Denial, Suspension, or Revocation Hearing;
Section 16.66.150, Personnel Orientation;
Section 16.66.170, Charges and Fees; and
Section 16.66.180, Closure of Receiving Station.
Proposed changes to these PAMC chapters require amendment of the City’s Administrative Penalty Schedule to adjust the referenced chapter sections as well as list the appropriate penalties for these PAMC chapter sections (Attachment H).
FISCAL/RESOURCE IMPACT
There are no anticipated fiscal/resource impacts to the City from these proposed ordinance changes. Proposed changes to PAMC Chapters 16.09 (Sewer Use Ordinance) and 16.66 (Hauled Liquid Waste) are not anticipated to result in additional costs to facilities or companies governed by these ordinances.
Proposed changes to PAMC Chapter 16.11 (Stormwater Pollution Prevention) will require properties with private storm drain systems connected directly to the City storm drain system to establish trash controls to prevent trash from being discharged. Costs associated with this requirement will include trash control practices or trash capture devices and associated maintenance. It is anticipated that fewer than 10 existing properties will be impacted. The City will not charge property owners inspection fees for trash capture systems.
Proposed changes to PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of FOG) may result in food facility development projects incurring costs if new kitchen and/or bar fixture connections to GCDs are added or if GCDs are deemed non-operable and must be replaced to prevent discharges of FOG to the City’s sanitary sewer system. Requirements for secondary containment for waste cooking oil are expected to be a one-time cost of approximately $1,500 per food facility.
STAKEHOLDER ENGAGEMENT
Staff conducted extensive public outreach to solicit feedback about the proposed Ordinance changes via the City website; residential and commercial utility bill inserts; hand-delivered information to restaurants on California Avenue, University Avenue, and El Camino Real; the City’s Business Connect, Sustainability and Utilities newsletters; and direct mailers. Emails were also sent to RWQCP partners, permitted industrial facilities, haulers of liquid waste, and food facilities.
Staff presented the proposed Ordinance changes to the Retail Committee in June 2025,6 and a total of five public meetings were held: three were held during the week of March 24, 2025 for businesses and residents, and two were held in June 2025 - one for the California Avenue Merchants Meeting and one for the Downtown/University Avenue Stakeholder Meeting.
Approximately 25 stakeholders in total attended these five meetings. Staff received seven comments on proposed edits to PAMC Chapter 16.09 (Sewer Use Ordinance), all focused on clarifying text or implementation approaches. Four of those comments resulted in minor clarifying edits to the proposed ordinance. Staff received one comment on proposed edits to PAMC Chapter 16.11 (Stormwater Pollution Prevention), which requested stormwater runoff fees be made proportional to impermeable service area. This did not result in changes to the proposed ordinance, because the Palo Alto Municipal Code does not set Stormwater Management Fee charges. Staff received one comment on the proposed PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of FOG) that requested clarification on the need for the FOG program; this comment did not result 6 Retail Committee, June 18, 2025; Agenda Item #1 SR# 2505-4693 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=17543 in changes to the proposed ordinance. No comments were received on the proposed PAMC Chapter 16.66 (Hauled Liquid Waste). Presented all four proposed ordinance revisions to the Retail Committee meeting on August 20, 2025 and received clarifying questions on how the four ordinance revisions relate to each other and how they protect the environment.
ENVIRONMENTAL REVIEW
Council action on this item is exempt from CEQA review under section 15308 of the CEQA Guidelines because it is an action taken by the City as a regulatory body for the protection of the environment.
ATTACHMENTS
Attachment A: Summary of Proposed Changes to all Chapters Attachment B: Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance) Attachment C: Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention) Attachment D: Resolution Adopting Regulations for Stormwater Pollution Prevention 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) Attachment F: Resolution Adopting Regulations for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease
Attachment G: Ordinance Adopting New PAMC Chapter 16.66 (Hauled Liquid Waste) Attachment H: Resolution Amending and Restating Administrative Penalty Schedule APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer