Agenda packet — Palo Alto City Council, January 12, 2026 (part 3 of 4)

4. CONTRACTOR will maintain qualification records for personnel who perform covered tasks for a minimum period of 5 years after the individual is no longer performing them.

The City has the right to review and receive such records upon request, for up to 5 years after the completion of the agreement.

Equipment

1. Prior to beginning the leak survey each year, which is typically done in March/April, CONTRACTOR will submit an annual inventory list of each FI or RMLD unit that may be used. The list will identify survey usage (mobile or walking), model and serial number, CONTRACTOR’s identification number, age of unit, last calibration date, and next calibration due date.

2. CONTRACTOR will supply industry standard equipment for the duration of the contract.

City reserves the right to accept or reject the equipment. Only units listed on the annual inventory list will be reviewed for approval by the City for use on this project.

3. CONTRACTOR will immediately remove from service any unit not calibrated in the appropriate intervals or not approved by City and replace such units with approved calibrated units.

4. While performing walking surveys, CONTRACTOR will provide each GLS with a handheld flame ionization unit or RMLD unit.

5. CONTRACTOR will supply gas canisters for FI units and ensure RMLD units are operational and fully charged.

6. While performing mobile surveys, CONTRACTOR will provide a vehicle, computer and approved mobile methane leak detector. The vehicle will be equipped with a multiple intake system of adequate length to obtain samples of air from an area at least eight (8) feet wide along the path of the survey.

Mobile Survey

1. CONTRACTOR will furnish all labor and equipment necessary to conduct a mobile gas leak survey of approximately but not limited to Two Hundred Ten (210) miles of distribution mains, annually, through the City.

2. CONTRACTOR will operate the approved motor vehicle for use in conducting the survey.

3. CONTRACTOR will conduct the survey at speeds that allow an adequate sample to be continuously obtained by intakes as the vehicle passes over venting locations, considering the location of the gas main and any adverse conditions which may exist. Adverse conditions may include heavy traffic, parked vehicles, road closures, or other obstacles that may arise on public streets. The GLS will be accommodated in such adverse conditions as the GLS conducts the survey or inform the Project Manager if additional aid is required.

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4. CONTRACTOR will verify all detected all leak indications by a walking survey and will classify the leak indications in accordance with Table 1 at the end of this document.

5. CONTRACTOR will establish the spread and concentration of each leak indication and enter the ground leak detection details on a ground leak survey report form (see Exhibit F).

6. CONTRACTOR will enter information on the report that documents:
a. The date and by whom the survey was conducted
b. Each leak will be identified by:
i. Numerical sequence
ii. Address, grade
iii. Percentage (%) or part per million (PPM) gas reading c. The location of the leak with diagram of property addresses, street intersections, valve locations, etc....

7. CONTRACTOR will mark all leaks in yellow paint upon verification.

8. CONTRACTOR will take care to prevent overspray or damage to customer property.

Walking Survey

1. CONTRACTOR will survey the entire gas distribution system in a two (2) year cycle. In even numbered years CONTRACTOR will conduct the walking survey on the north side of the City and in odd numbered years CONTRACTOR will conduct the walking survey on the south side of the City. Contractor’s 2023 walking gas leak survey (the first year of this contract) will cover the south side of the City and will include approximately 9,000 commercial and residential gas services. Maps of both the north and south sides of the City are included in (see Exhibit H).

2. In addition to either the north or south side of the City, CONTRACTOR will also include the following fourteen principal business districts in the annual walking survey:

Business Districts:

1. East Meadow Circle

2. Golf Course

3. St. Francis

4. San Antonio / Fabian

5. Charleston Center

6. Midtown

7. Downtown / Town & Country

8. Alma Center

9. El Camino Real

10. Stanford Shopping Center

11. VA Hospital
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12. Bayshore

13. Stanford Industrial Park

14. Palo Alto Country Club

3. CONTRACTOR will be able to recognize and react appropriately according to their Contractor Operator Qualification certification to Abnormal Operating Conditions (AOCs) that may indicate a dangerous situation or a condition exceeding design limit.

4. CONTRACTOR will mark all leaks in yellow paint upon verification.

5. CONTRACTOR will take care to prevent overspray or damage to customer property.

6. The CONTRACTOR will furnish all professional services necessary to perform the tasks.

7. Provide a minimum of two technicians to be tested and qualified for performing leak surveys and completing visual inspections to identify abnormal operating conditions and atmospheric corrosion per the City’s Operator Qualification Plan.

8. Furnish all labor, equipment, material, travel and all necessary incidentals to conduct a mobile gas leak survey of all distribution mains.

9. Conduct a mobile survey of all gas distribution mains.

10. Check detection instruments for proper operation and calibrate each instrument with a known gas sample per the manufacturer’s specifications, before using the instruments to conduct the surveys. Submit proof of calibration each year to the Utilities Project before beginning the survey and as requested during the duration of the survey.

11. Furnish all labor, equipment, material, travel and all necessary incidentals to conduct a walking gas leak survey of all commercial and residential gas services, up to and including the meter sets in the fourteen principal business districts and either the North or South side of the City (in alternating years).

12. Survey each service line from the back of the curb up to and including the meter set.

13. Use gas detection equipment capable of detecting the concentration of at least 50 PPM of gas in the air at any sampling point. Equipment will analyze for methane content by using a flame ionization detector. The instrument will be equipped with a visual display of concentration levels and an audible detection alarm.

14. Document any Abnormal Operating Conditions (AOCs) found during the survey on a City-provided form (see Exhibit E), including photographs.

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15. Revisit sites as described below on any initially inaccessible service lines and meter sets.

16. Conduct a recheck of all existing gas leaks identified on the survey maps each year.

17. Submit all completed forms to the Project Manager no later than 7:30 A.M. on the next regular business day following the day of the survey.

18. City will provide no carbon required (NCR) forms for all leak documentation (see Exhibits E & F) and locked gate doorhangers (see Exhibit G).

Walking Survey Details

1. CONTRACTOR will conduct the walking survey every year on alternating sides (north and south) of the City. Maps of both the north and south sides of the City are included in (see Exhibit H).

2. CONTRACTOR will survey the entire gas distribution system in a two (2) year cycle. In even numbered calendar years, CONTRACTOR will conduct the walking survey on the north side of the City and in odd numbered years, CONTRACTOR will conduct the walking survey on the south side of the City. The 2023 walking gas leak survey (the first year of this contract) will cover the south side of the City and will include approximately 9,000 commercial and residential gas services.

3. In addition to either the north or south side of the City, the annual walking survey also includes the following fourteen principal business districts:

Business Districts:

1. East Meadow Circle

2. Golf Course

3. St. Francis

4. San Antonio / Fabian

5. Charleston Center

6. Midtown

7. Downtown / Town & Country

8. Alma Center

9. El Camino Real

10. Stanford Shopping Center

11. VA Hospital

12. Bayshore

13. Stanford Industrial Park

14. Palo Alto Country Club

4. CONTRACTOR will survey each gas service, up to and including the meter set.

5. CONTRACTOR will conduct the survey at walking speeds sufficiently slow to allow an adequate sample to be continuously obtained by the instrument intake as it passes over Docusign Envelope ID: 6679A2C3-C4A0-4C67-9985-766D2E34D34F Item 5
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venting locations. In performing the leak survey of gas services, CONTRACTOR will survey the area to be covered along the route of the service line from the back of the curb, up to and including the meter set.

6. CONTRACTOR will address any leaks found during the walking survey as described below:
a. Upon detection, CONTRACTOR will verify all leak indications and classify them in accordance with Table 1 at the end of this Exhibit. CONTRACTOR will establish the spread and concentration of each leak indication and enter the ground leak detection details on a ground leak survey report form (see Exhibit F). CONTRACTOR will enter information on the report form to document:
i. When and by whom the survey was conducted
ii. Each leak will be identified by:
i. Numerical sequence
ii. Address
iii. Grade
iv. Percentage (%) or part per million (PPM) gas reading v. Leak location, including a hand drawn map
b. CONTRACTOR will complete meter leak/AOC forms supplied by the City, or a City approved equivalent (see Exhibit E), to assess compliance with City’s utility standards. CONTRACTOR may take the sample through the reading lid and is not required to remove the lids of curb meter boxes.
i. CONTRACTOR will number the meter leak forms consecutively and separately from the ground leaks. CONTRACTOR will also conduct a visual inspection of the gas riser, gas meter and the regulator for defects, corrosion and illegal grounding by other utilities (including, but not limited to, telephone and cable companies). CONTRACTOR will complete a City- provided Abnormal Operating Condition (AOC) Survey form (see Exhibit E) for each location identified as an AOC. CONTRACTOR will provide a photograph of all reported AOCs. CONTRACTOR will ensure the address of the location will be visible in the photograph.

c. CONTRACTOR will describe all ground leaks and meter leaks and note them on the City-provided Map at the appropriate address. CONTRACTOR’s notes will include leak number, leak concentration, leak location and Palo Alto Meter # from the meter, if applicable. CONTRACTOR will verify all addresses where leaks are found by checking the physical address on the building.
i. In cases where there are inconsistencies between the physical addresses and the address in the Map, CONTRACTOR will consider the address on the building correct and note that on the Map and on the Survey Report Form.

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d. CONTRACTOR will mark each service with a red check ( ) on the Map and enter each service on the City-provided reporting format (spreadsheet or database) to report the data electronically.
e. Any service not checked will be considered not surveyed and CONTRACTOR must be re-survey in order to adequately perform the tasks required in this Agreement (see subsection “f” immediately below for additional information on completing surveys). f. A location is considered completed/surveyed by CONTRACTOR only when CONTRACTOR’s GLS has leak tested the service line and meter set for gas leaks, and verified, classified and documented the findings.
g. CONTRACTOR will make every reasonable effort to complete the survey upon the initial site visit. If the GLS is unable to conduct or complete the survey at any location because of an inability to access the premise, CONTRACTOR will take the following actions:
i. Complete the “Special Instructions” section of the Gas Meter Leak/AOC Survey Tag (see Exhibit E). CONTRACTOR’s GLS will indicate on the form the reason the survey was not completed at the location (locked gate, dog, etc.).
ii. A City-provided door hanger (see Exhibit G) will be attached to the door. The door hanger will advise the resident to contact the City to schedule a date/time for the survey to be conducted on the service/meter.
iii. If CONTRACTOR’s GLS is unable to access a location to conduct a complete survey, CONTRACTOR will make up to two additional attempts. The Project Manager may assist in setting up appointments with residents for the two additional attempts. CONTRACTOR’s GLS will be courteous and on time for appointments.
iv. CONTRACTOR’s GLS will be available at the conclusion of each survey to work with the City’s meter reading group to access any location where the GLS was unable to complete the survey due to inaccessibility or any other reason.
v. If, after an initial visit and two additional visits as arranged by the Project Manager, the site is still inaccessible, the City will consider the contractor’s obligation fulfilled and eligible for payment.

Re-survey of Existing 3 Gas Leaks

A list of existing Grade 3 Gas Leaks will be provided to the CONTRACTOR’s GLS each year.

CONTRACTOR will re-survey leaks and reassess them annually and provide a revised Leak Survey form (see Exhibit F) to the Project Manager. Leak resurveying is a time sensitive task and CONTRACTOR will observe department implemented timelines.

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distribution system. Known leaks are located throughout the City and are identified on the Maps with a red colored asterisk (*). The specific locations of existing leaks will be provided upon award of the contract.

Work Hours
CONTRACTOR will not conduct overtime, weekend or holiday work, unless receiving prior approval by City. The workday is M-TH 7:30 AM and 4:00 PM.

General Reporting Requirements

1. CONTRACTOR’s GLS will immediately report all leaks of a hazardous nature (Grade 1) to Utility Dispatch at (650) 329-2579, to have the leak recorded in the dispatch log and to dispatch a Utility Field Services Representative to the location. The GLS will remain on site until Utility staff arrives. All houseline leaks discovered are considered grade 1 and CONTRACTOR will call them into dispatch. The GLS will wait on scene until a Field Service Representative or other City representative arrives and will communicate findings.

2. CONTRACTOR will deliver completed Survey Report forms, Gas Meter Leak / AOC Survey forms, and Maps to the City no later than 7:30 A.M. on the next regular workday following the survey, unless other arrangements are specifically identified by the City.

Drug Testing Requirements
CONTRACTOR’s employees who perform operating, maintenance, or emergency response functions on natural gas pipelines are subject to the provisions of Title 49 CFR Part 199, “Drug and Alcohol Testing”, including the requirements for drug testing, record keeping, education, and training. CONTRACTOR will ensure that its affected employees are given drug testing in accordance with the regulations.

CONTRACTOR will submit a copy of its “Drug and Alcohol Testing Policy” before performing any work under this Agreement.

Final Report
CONTRACTOR will prepare a final report, which provides documentation of the entire survey and the results of such survey. One (1) hard copy of the report submitted to the City within thirty (30) days of the survey completion date. CONTRACTOR will provide an electronic copy of the report if available.

Additional On-Call Services - Citywide
CONTRACTOR will perform additional on-call leak surveying services at the request of City due to emergencies, uprating’s, and additional scheduled work that may come up within the contract period.

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Table 1
Grading and Identification of Gas Leaks
Grade Definition Priority of Leak Repair Examples
3 Non-Hazardous –
Leaks that are non-
hazardous at the time
of detection and can
reasonably be
expected to remain
non-hazardous.

Leaks will be scheduled for re-evaluation
during the next scheduled leakage survey
or within 15 calendar months of detection,
whichever occurs first, until the leak is re-
graded or no longer results in a reading.

Grade 3 leaks may include, but are not limited to:

1. A leak that naturally vents to the atmosphere.

2. Any indication of gas < 4% gas-in-air (80% Low
Explosive Level LEL) in small gas associated substructures such as valve boxes.

3. A leak with minimal migration.

4. Any indication of gas <1% gas-in-air (20% LEL) in a
confined space.
2 Intermediate - Leaks
that are not
hazardous at the time
of detection, justify
scheduled repair
based on probable
future hazard.

Leaks should be repaired within one year
but no later than 15 months from the date
reported. In determining the repair
priority, criteria such as the following
should be considered:

1. Amount of and migration of gas.

2. Proximity of gas to buildings and
subsurface structures.

3. Extent of pavement.

4. Any leak, which in the judgment of
company personnel at the scene, is of
sufficient magnitude to justify schedule
repair

Grade 2 leaks may include, but are not limited to:

1. Any leak requiring action prior to any adverse changes in venting conditions.

2. Any leak that would likely migrate into or under
buildings.

3. Any indication of gas > 2% gas-in-air (40% LEL)
under a sidewalk in a wall-to-wall paved area that is not a Grade 1 leak.

4. Any indication of gas > 5% gas-in-air (100% LEL)
under a street in a wall-to-wall paved area.

5. Any indication of gas < 4% gas-in-air (80% LEL) in
small substructures associated with gas facilities that would likely migrate creating a probable future hazard.

6. Any indication of gas between 1% and 4% gas-in-air
(20% - 80% LEL) in a confined space.
1 Hazardous - Leaks
that pose an
immediate hazard to
persons or property
and requires
continuous action
until conditions are
no longer hazardous.

Prompt remedial action must be
undertaken for leaks classified as
hazardous. Prompt remedial action may
include, but not be limited to the
following:

1. Implementation of the CPAU
Emergency Operating Plan.

2. Evacuation of buildings.

3. Blocking off/barricading an area.

4. Rerouting traffic.

5. Eliminating ignition sources.

6. Venting the area and/or buildings.

7. Stopping the flow of gas by closing
valves or other means.

8. Notifying Fire, Police and/or other
emergency responders.

Grade 1 leaks may include, but are not limited to:

1. Any gas leak that can be seen, heard, or felt.

2. Any leak which, in the judgment of company personnel at the scene, is considered as an immediate hazard.

3. Escaping gas that has ignited.

4. Any indication of gas that has migrated into or under a building.

5. Any indication of gas at the outside wall or where gas would likely migrate to an outside wall due to surface
conditions or cover and/or subsurface structures or a
building.

6. Any indication of gas > 4% gas-in-air (80% LEL) in a confined space.

7. Any indication of gas > 4% gas-in-air (80% LEL) in
small substructures not associated with gas facilities where gas would likely migrate to the outside wall of a building.

8. All leaks inside a building(s)

9. All leaks inside enclosures containing electrical
equipment.

10. All houseline leaks

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EXHIBIT A-1

PROFESSIONAL SERVICES TASK ORDER

CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.

CONTRACT NO.

OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)

1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.:

2. CONSULTANT NAME:

3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________

5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________

6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________

7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:

SERVICES AND DELIVERABLES TO BE PROVIDED

SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)

8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________

I hereby authorize the performance of the
work described in this Task Order.

APPROVED:

CITY OF PALO ALTO

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

I hereby acknowledge receipt and acceptance of this
Task Order and warrant that I have authority to
sign on behalf of Consultant.

APPROVED:

COMPANY NAME: ______________________

BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________

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EXHIBIT B

SCHEDULE OF PERFORMANCE

CONSULTANT shall perform the Services according to the following schedule, with clarifications by the Project Manager where needed:

1. Re-survey of all existing grade 3 leaks to be completed before their annual review date (between April 6th and May 15th of each year).

2. Walking Survey to be completed by December of each year, start date to be determined by the project manager each year usually around June, dependent on the completion of the resurveying leak survey.

3. Mobile Survey to be performed during October/November each year.

4. The complete gas survey to be completed by December 31 of each year.

Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on- call agreements per Section 1 or agreements with Additional Services per Section 4.)

The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement.

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EXHIBIT C

COMPENSATION

CITY agrees to compensate CONSULTANT for the Services performed in accordance with the terms and conditions of this Agreement, including Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4 of the Agreement), based on the hourly rate schedule attached as Exhibit C-1.

The compensation to be paid to CONSULTANT under this Agreement for all S ervices, any specified reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed the amount(s) stated in Section 4 of this Agreement . CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4) , within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY.

REIMBURSABLE EXPENSES

CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time /overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder.

Reimbursable expenses, if any are specified as reimburs able under this section , will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00.

A. Travel outside the San Francisco Bay A rea, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses.

B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost.

All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information.

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EXHIBIT C-1

SCHEDULE OF RATES

CONSULTANT’s schedule of rates is as follows:

CPAU GAS LEAK SURVEY BID
TABLE Consultant
Bid Schedule A: Mobile Gas (Methane)
Leak Survey
Mobile Survey
Year 1
Mobile Survey
Year 2
Mobile Survey
Year 3
Bid Schedule
A Total- Years
1 through 3
Mobile Gas Leak Survey. All labor,
equipment, material, travel and all necessary
incidentals to conduct a mobile gas leak
survey of the City's gas distribution system
mains including appropriate documentation.
$ 40,000.00 $ 41,000.00 $ 42,025.00 $ 123,025.00 Bid Schedule B: Business District Gas
(Methane) Leak Survey
Business
Districts
Survey
Year 1
Business
Districts
Survey
Year 2
Business
Districts
Survey
Year 3
Bid Schedule
B Total- Years
1 through 3
Business District Leak Survey. All labor,
equipment, material, travel and all necessary
incidentals to conduct an annual walking gas
leak survey of 14 business districts including
appropriate documentation.
$ 20,000.00 $ 20,500.00 $ 21,013.00 $ 61,513.00 Bid Schedule C: Walking Gas (Methane)
Leak Survey
Cost Per
Service
Surveyed
Year 1
Cost Per
Service
Surveyed
Year 2
Cost Per
Service
Surveyed
Year 3
Bid Schedule
C Total -
Years 1
through 3
Walking Gas Leak Survey. All labor,
equipment, material, travel and all necessary
incidentals to conduct an annual walking gas
leak survey of approximately 9,000 residential
& commercial gas services, up to and
including the meter set including appropriate
documentation and repeat visits when
necessary.
$ 8.33 $ 8.55 $ 8.76 $ 230,790.00 Bid Schedule D: Gas Leak Resurvey -
Citywide.

Cost Per
Service
Resurveyed
Year 1
Cost Per
Service
Resurveyed
Year 2
Cost Per
Service
Resurveyed
Year 3
Bid Schedule
D Total -
Years 1
through 3
All labor, equipment, material, travel and all
necessary incidentals to resurvey
approximately 100 existing gas leaks, up to
and including the meter set including
appropriate documentation.
$ 30.00 $ 30.75 $ 31.55 $ 9,230.00 On-Call Services - Citywide
Year 1 Year 2 Year 3 Total - Years 1
through 3
All labor, equipment, material, travel and all
necessary incidentals to perform additional
leak survey services (main, services, meters,
$
30,000.00
$
30,000.00
$
30,000.00
$
90,000.00
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valves, etc.), including all appropriate
documentation.

Total $ 168,000.00 $ 171,525.00 $ 175,033.00 $ 514,558.00 Year 1 Year 2 Year 3 Total 3 Years

The total proposed costs per year:
• Year 1: $138,000
• Year 2: $141,525
• Year 3: $145,033
• On-Call Services: $30,000

The above pricing is broken down in the bid table. In addition to the bid table, we have included some rates below for various activities:
• $225/hr of regular time labor
o Bundled labor rate that includes truck, survey tools, and survey equipment o Labor for: OQ training, additional work, etc.
• $300/hr for labor outside of work hours
o Bundled labor rate that includes truck, survey tools, and survey equipment o Labor for: Emergency leak response, etc.
• $500 mobilization cost for emergency/on-call services • Minimum of 4 hours of labor to be charged for each on-call request or additional work • $150/hr for additional admin work

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EXHIBIT D

INSURANCE REQUIREMENTS

CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE

CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.

AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.

REQUIRED TYPE OF COVERAGE REQUIREMENT

MINIMUM LIMITS
EACH

OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY

STATUTORY

STATUTORY STATUTORY STATUTORY
YES

GENERAL LIABILITY, INCLUDING

PERSONAL INJURY, BROAD FORM

PROPERTY DAMAGE BLANKET

CONTRACTUAL, AND FIRE LEGAL

LIABILITY

BODILY INJURY

PROPERTY DAMAGE

BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000

$1,000,000

YES

AUTOMOBILE LIABILITY,

INCLUDING ALL OWNED, HIRED,

NON-OWNED

BODILY INJURY
- EACH PERSON
- EACH OCCURRENCE

PROPERTY DAMAGE

BODILY INJURY AND PROPERTY

DAMAGE, COMBINED
$1,000,000
$1,000,000
$1,000,000

$1,000,000

$1,000,000
$1,000,000
$1,000,000

$1,000,000

YES

PROFESSIONAL LIABILITY,

INCLUDING, ERRORS AND

OMISSIONS, MALPRACTICE (WHEN

APPLICABLE), AND NEGLIGENT

PERFORMANCE
ALL DAMAGES $1,000,000
YES

THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST

AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM

OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.

I. INSURANCE COVERAGE MUST INCLUDE:

A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY.

II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING EMAIL: [email protected]

III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS:

A. PRIMARY COVERAGE

WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,

INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR

CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.

Docusign Envelope ID: 6679A2C3-C4A0-4C67-9985-766D2E34D34F Item 5
Attachment A - Baron
Contracting, Contract
C26195486

Item 5: Staff Report
Pg.
32 Packet Pg. 242 of 469

Professional Services
Rev. Oct 16,2024

Page 29 of 29 ends

B. CROSS LIABILITY

THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER

THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE

INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE

INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.

C. NOTICE OF CANCELLATION

1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON

OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.

2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.

EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO SENT TO THE FOLLOWING EMAIL:

[email protected]

Docusign Envelope ID: 6679A2C3-C4A0-4C67-9985-766D2E34D34F Item 5
Attachment A - Baron
Contracting, Contract
C26195486

Item 5: Staff Report
Pg.
33 Packet Pg. 243 of 469

Baron Contracting $ 40,000.00 $ 41,000.00 $ 42,025.00 $ 123,025.00 Alisto Inc. $ 29,610.00 $ 29,840.00 $ 30,270.00 $ 89,720.00 Heath Consultants Inc. DQ DQ DQ DQ
Leak Detection Services Inc. DQ DQ DQ DQ
Bid Schedule B: Business District Gas (Methane) Leak
Survey
Business Districts
Survey
Year 1
Business
Districts Survey
Year 2
Business
Districts Survey
Year 3
Bid Schedule B
Total- Years 1
through 3
Business District Leak Survey. All labor, equipment,
material, travel and all necessary incidentals to conduct an annual walking gas leak survey of 14 business
districts including appropriate documentation.

Baron Contracting $ 20,000.00 $ 20,500.00 $ 21,013.00 $ 61,513.00 Alisto Inc. $ 67,415.00 $ 68,945.00 $ 71,500.00 $ 207,860.00 Heath Consultants Inc. DQ DQ DQ DQ
Leak Detection Services Inc. DQ DQ DQ DQ
Bid Schedule C: Walking Gas (Methane) Leak Survey
Cost Per Service
Surveyed Year 1
Cost Per Service
Surveyed Year
2 Cost Per Service
Surveyed Year
3 Bid Schedule C
Total - Years 1
through 3
Walking Gas Leak Survey. All labor, equipment,
material, travel and all necessary incidentals to conduct an annual walking gas leak survey of approximately
9,000 residential & commercial gas services, up to and
including the meter set including appropriate
documentation and repeat visits when necessary.

Baron Contracting $ 74,970.00 $ 76,950.00 $ 78,840.00 $ 230,760.00 Alisto Inc. $ 263,045.00 $ 273,240.00 $ 283,780.00 $ 820,065.00 Heath Consultants Inc. DQ DQ DQ DQ
Leak Detection Services Inc. DQ DQ DQ DQ
Bid Schedule D: Gas Leak Resurvey - Citywide.

Baron Contracting $ 3,000.00 $ 3,075.00 $ 3,155.00 $ 9,230.00 Alisto Inc. $ 7,230.00 $ 7,495.00 $ 7,770.00 $ 22,495.00 Heath Consultants Inc. DQ DQ DQ DQ
Leak Detection Services Inc. DQ DQ DQ DQ
Total
Year 1 Year 2 Year 3 Total 3 Years
Item 5
Attachment B - Bid Summary

Item 5: Staff Report
Pg.
34 Packet Pg. 244 of 469

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E-Grid
q
Item 5
Attachment C - Gas Leak
Survey Grid

Item 5: Staff Report
Pg.
35 Packet Pg. 245 of 469

City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: January 12, 2026
Report #:2510-5319
TITLE
Approval of a Contract with the Media Center for Cable Casting Services of Public Meetings for a Term of Three Years and a Not to Exceed Amount of $540,000 with Two One-Year Options to Extend for a Potential Not to Exceed amount of $900,000 over a five-year term, for cablecasting, production, and streaming services; CEQA Status – Not a Project.

RECOMMENDATION
Staff recommends that the City Council approve a three-year agreement (Attachment A) between the City of Palo Alto and Midpeninsula Community Media Center, Inc., from January 1, 2026 through January 1, 2029, in an amount not to exceed $180,000 per year, with two one- year options to extend (for a potential total not to exceed amount of $900,000 for a five-year term), for cablecasting, production and streaming services.

BACKGROUND
In 1983, a Joint Powers Agreement (JPA agreement) was entered into by the cities of Palo Alto, Menlo Park, East Palo Alto, the Town of Atherton, and San Mateo and Santa Clara counties for the purposes of obtaining cable television service within these jurisdictions (only portions of the counties are covered). The JPA agreement gives the City of Palo Alto (the City) the sole authority to act on behalf of the Joint Powers communities. Cable franchise holders provide various forms of compensation (franchise fees and public, education, and government (PEG) fees) to pay for the use of the Joint Powers’ public rights-of-way.

The City’s Cable Television Ordinance provides that the City may designate a nonprofit entity to serve the Joint Powers by providing PEG facilities, programming and related services.

Midpeninsula Community Media Center, Inc. (Midpen Media) has served in this capacity since the early 1990’s, through a series of agreements. In 2000, as part of the sale of Cable Co-op to AT&T, Midpen Media received a $17 million charitable donation. This donation was used to purchase a state-of-the-art studio, video production and training facility located at 900 San Antonio Road in Palo Alto. The donation monies are also used, on an ongoing basis, to fund a portion of Midpen Media’s annual operating expenditures. Since Midpen Media owns its video Item 6
Item 6 Staff Report

Item 6: Staff Report
Pg.
1 Packet Pg. 246 of 469

production facility and has ongoing income from the AT&T donation to supplement its operating expenditures, there is a significant barrier to entry for any other provider of these services. Bringing in a new provider would require an extensive and complex implementation process involving the City’s IT department and the new service provider. As such, under Palo Alto Municipal Code (PAMC) 2.30.360, the City Manager has approved an exemption from competitive solicitation due to the impracticality to solicit for these services.

In its continuing role, Midpen Media administers the Joint Powers’ seven local PEG channels, broadcasts local community programs, provides coverage of local government meetings, offers video production classes and workshops to community members, and provides local election coverage. In 2025, Midpen Media provided coverage of all live government meetings and produced local programs. Since the state of emergency due to COVID-19, Midpen Media has assisted the City with streaming Council meetings live via YouTube and Zoom.

ANALYSIS
Staff recommends that Council approve a new three-year agreement with Midpen Media, with two one-year options to extend, in an amount not to exceed $180,000 per year, starting on January 1, 2026. This agreement enables the following services:
1) Cablecasting of Palo Alto City Council, Council Committee, Board and Commission, and Citizen Advisory Committee meetings;
2) Cablecasting of the Mayor’s State of the City address, the annual City Council retreat, and other special events;
3) Recording of Utility Department workshops, major capital infrastructure projects, and special events; and
4) Streaming and archiving services.

Midpen Media will bill for these services monthly based upon the standard rates established in the PEG Support Services Agreement with the Joint Powers, approved by the Palo Alto City Council on January 27, 2020.

The new agreement again includes the scope from the last agreement for the recording of special Utility Department workshops, capital infrastructure projects, and community events (in an amount not to exceed $40,000 per year and on an as-needed basis). Either party may terminate the agreement with six months prior written notice.

If this contract extension is not approved, there would be a startup period where the City would need to hire additional staff or assign current City staff to take on videography duties, purchase any necessary equipment and/or software, and develop the process/procedures needed for channel switching and archiving meetings. The City may not be able to televise meetings on the government channel or archive meetings until this effort is finalized. Also, funding for this alternative is anticipated to be more than the $180,000 annual cost paid to Midpen Media for these services.

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FISCAL/RESOURCE IMPACT
Funds for the first year of this agreement are included in the Fiscal Year 2026 Budget. The General Fund will support $140,000 for citywide public meeting coverage, and the Utilities Enterprise Funds will support $40,000 specifically for special Utilities workshops, capital infrastructure projects, and community events. The agreement includes a provision for annual CPI rate adjustments beginning in 2026. While the contract establishes a not-to-exceed annual cap of $180,000, staff will monitor service usage rates. If CPI increases significantly reduces the billable hours available under this cap, staff may return to Council for a contract amendment or budget adjustment in future fiscal years. Historically, hours have been under the cap.

Subsequent years of the contract are subject to Council approval of annual operating budgets.

STAKEHOLDER ENGAGEMENT
Staff has coordinated with the Media Center on this agreement.

ENVIRONMENTAL REVIEW
The approval of this contract is exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15061(c)(3).

ATTACHMENTS
Attachment A: Midpen Media, Contract C26196212
APPROVED BY:

Lauren Lai, Administrative Services Director
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1 CONTRACT NO. C26196212

BETWEEN

CITY OF PALO ALTO
AND
MIDPENINSULA COMMUNITY MEDIA CENTER, INC.

FOR CABLECASTING, PRODUCTION, AND

STREAMING SERVICES

This Cablecasting, Production, and Streaming Services Agreement (the “Agreement”), dated as of December 15, 2025, is entered into by and between the CITY OF PALO ALTO, a California chartered municipal corporation (the "City"), and the MIDPENINSULA COMMUNITY MEDIA CENTER, INC., a corporation organized under the California Nonprofit Public Benefit Corporation Law ("Mi dpen Media") (individually, a “Party” and, collectively, the “Parties”), in reference to the following facts and circumstances:

RECITALS:

1. The City is a party to the Amended and Restated Joint Exercise of Powers Agreement, dated June 23, 2009, and as hereinafter may be amended ("JPA Agreement"), by and between the Cities of Palo Alto, East Palo Alto and Menlo Park, the Town of Atherton and th e Counties of San Mateo and Santa Clara (collectively, “Joint Powers” or “JPA”), and is authorized to act on behalf of the JPA members.

2. The City desires to provide support for the use of cable television public, educational, and government (“PEG”) access channels provided pursuant to federal and City law.

3. Pursuant to the Digital Infrastructure and Video Competition Act of 2006, codified at Cal. Util. Code §§ 5800 et seq. (“DIVCA”), the California Public Utilities Commission (“CPUC”) has granted separate video franchises to AT&T and Comcast to serve areas that include the jurisdictions of the JPA members. (AT&T, Comcast and any other entity franchised by the CPUC as a video service provider to provide video service within the jurisdictional area of any JPA member is referred to, individually, as “Cable Compan y” and, collectively, as “Cable Companies”.)

4. DIVCA permits, and the City’s Cable Television Ordinance No. 4636, adopted May 8, 2000, provides that (A) the City may designate a nonprofit access management entity (“Access Corporation”) to operate and administer PEG access facilities, equipment and channels (“PEG Facilities” or "PEG Facilities and Channels,” as appropriate), (B) certain channel capacity shall be provided by Cable Companies for PEG access, (C) certain ongoing payments shall be made by Cable Companies for PEG Facilities, and (D) certain se rvices shall be provided by Cable Companies for PEG Facilities.

5. By an agreement between the City and Midpen Media, dated July 1, 2020, Midpen Media agreed to provide certain services to the City relating to support of City governmental access programming.

6. The City , by City Council Resolution No. 8100, adopted October 22,

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2 2001, has designated Midpen Media as the Access Corporation to operate and manage the PEG Facilities and Channels. Midpen Media has served in such capacity since 2001, through a series of agreements.

7. Midpen Media has agreed to continue to serve as the Access Corporation designated by the City and to serve the JPA community by providing PEG access facilities, programming and services.

8. The City wishes Midpen Media to continue to provide, and Midpen Media wishes to provide, to the City certain services relating to and supporting the development, production, cablecasting and video streaming of City governmental access programming.

NOW, THEREFORE, in consideration of the recitals and the following mutual covenants, terms and conditions, the Parties agree:

SECTION 1. TERM OF AGREEMENT; TERMINATION

1.1 The term of this Agreement is three (3) years, commencing on December 15, 2025, unless it is terminated earlier, as provided in this Agreement.

1.2 This Agreement may be extended, by mutual agreement of the Parties, in writing, for up to two (2) additional one-year periods.

1.3 On or before January 1, 2028, the Media Center shall give the City written notice of its intention to seek an extension. If the Agreement is extended, on or before January 1, 2029, the Media Center shall give the City written notice of its intention to seek an additional extension.

1.4 On or before March 31, 2028 (and March 31, 2029, if the Agreement is extended in 2028), the City shall respond to the Media Center’s request for an extension, stating either the City’s decision to extend or not to extend. The City shall not be required to provide any reason for approving or denying the Media Center’s request.

1.5 Either Party may terminate this Agreement for convenience, on not less than one hundred eighty (180) days’ prior written notice.

SECTION 2. SCOPE OF SERVICES AND COMPENSATION

2.1 General. Midpen Media's work for the City shall be scheduled at the City’s convenience based on the deadlines mutually agreed to between Midpen Media and the City.

Absence of Midpen Media’s staff will not justify Midpen Media’s failure to comply with deadlines. Midpen Media will provide technical expertise and trained staff for City projects.

Midpen Media will operate and maintain equipment for City projects.

2.2 Administration. Midpen Media shall maintain a backup library of electronic recordings of City meetings recorded under this Agreement for a period of one year after the expiration of the term.

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3 2.3 Marketing and Publicity. Midpen Media will provide marketing and publicity of City programs, including, but not limited to, television and digital signage announcements. The City will augment this publicity as needed.

2.4 Services and Compensation.

2.4.1 Cablecasting services: Midpen Media shall cablecast all City Council, Commission, Board and Committee meetings, as set forth in Exhibit A, attached hereto and made a part hereof. These meetings will be aired on Government Access Channel 26; in the event Midpen Media Center cablecasts two City meetings at the same time, the second meeting will be aired on Government Access Channel 29 or in accordance with the JPA’s government channel policies and procedures when there is a scheduling conflict with another JPA member. Midpen Media shall bill the City on a monthly basis, at the hourly rates set forth in Exhibit B, attached hereto made a part hereof, for actual cablecasting hours.

2.4.2 Other production services, special events, and support services for City emergency operations: Midpen Media shall cablecast the Mayor’s State of the City address and the annual City Council retreat. Midpen Media will provide broadcasting support services for City emergency operations as needed. Other video production needs may be identified during the year.

Midpen Media shall bill the City on a monthly basis for hours associated with these services, in accordance with the hourly rates set forth in Exhibit B.

2.4.2.1 Other productions and special events.
(A) The City will attempt to provide a minimum of five (5) business days prior written notice of its desire to have other productions, special events or activities recorded. Subject to any pre -existing contractual obligations and personnel and equipment avail ability, Midpen Media shall attempt to provide the services requested by the City.

2.4.3 Streaming services: Midpen Media shall stream live any meeting cablecast on Government Access Channels. These Internet streams shall be accessible to users of established computer operating systems, devices, and internet browsers.

(A) Midpen Media shall index and archive City meetings and post links to meeting archives on the Midpen Media website. Midpen Media shall make reasonable efforts to post meeting recordings on the Midpen Media website within two (2) business days following each meeting, and shall remain continuously available thereafter. Midpen Media shall use YouTube for indexing and archiving services, subject to YouTube’s then-current availability and access policies.

Any alternate format shall be mutually agreed to by the Parties. (B) Midpen Media shall notify the City within two (2) hours of discovering that its website is disabled or off line, or any of the archived City recordings is unavailable to the public.

Midpen Media shall make reasonable and diligent and efforts, working with YouTube as necessary, to restore access as soon as reasonably practicable, and will provide the City with timely updates regarding progress.
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4 Midpen Media shall deliver to the City a complete copy of all archived recordings on media provided by the City, in a machine-readable format mutually agreed-upon by the parties, within 30 days. This paragraph shall survive the termination or expiration of this Agreement.

Midpen Media shall bill the City on a monthly basis for hours associated with these services, in accordance with the hourly rates set forth in Exhibit B.

2.4.4 City’s Utilities Department special events: Midpen Media shall record Utilities Department special events (including, but not limited to, meetings, workshops, and Facility Manager meetings) or as requested by the Manager of Utilities Program Services or his/her designee, provided five working days’ notice is given. Midpen Media shall bill the City on a monthly basis for hours associated with these services, in accordance with the hourly rates set forth in Exhibit B.

2.4.5 Compensation: The total amount of Midpen Media's billings shall not exceed One Hundred Eighty Thousand Dollars ($ 180,000) per year. Of this amount, Midpen Media’s billings for Utilities Department events as described in Section 2.4. 4 above shall not exceed Forty Thousand Dollars ($40,000) per year.

2.4.6 Prompt Payment. The City will pay Midpen Media within thirty (30) days of receipt of a proper invoice from Midpen Media.

SECTION 3. INDEMNITY; LIMITATION OF LIABILITY

3.1 Midpen Media shall indemnify and defend the City, and its elected and appointed officers and employees (an “Indemnified Party” or collectively “Indemnified Parties”), against any third -party claim (a) arising or resulting from or out of Midpen Media’s failure to comply with any applicable laws, rules, regulations or other requirements of local, state or federal authorities, or (b) of libel, slander, invasions of privacy, or infringement of common law or statutory copyright, which claim, directly or indirect ly, results from Midpen Media’s use, or Midpen Media’s supervision of use by others, of channels, funds, equipment, facilities or staff granted under this Agreement, City law or the Cable Companies’ CPUC video service franchises.

Midpen Media shall pay any costs or damages finally awarded by a court of competent jurisdiction or agreed upon in settlement. Midpen Media’s obligation under this Section are contingent on Midpen Media receiving prompt notice of any claim from the applicable Indemnified Party, sole control of the defense and settlement of any dispute (provided that an Indemnified Party may participate in such defense with counsel of its own choice at its own cost), and reasonable cooperation, at Midpen Media’s sole expense, from the Indemnified Parties.

3.2 IN NO EVENT WILL EITHER PARTY BE LIABLE FOR ANY

CONSEQUENTIAL, INDIRECT, EXEMPLARY, SPECIAL OR INCIDENTAL DAMAGES,

INCLUDING ANY LOST DATA AND LOST PROFITS, ARISING FROM OR RELATING TO

THIS AGREEMENT, EVEN IF THE PARTIES HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. MIDPEN MEDIA’S TOTAL CUMULATIVE

LIABILITY IN CONNECTION WITH THIS AGREEMENT, WHETHER IN CONTRACT OR TORT OR OTHERWISE, WILL NOT EXCEED $1,000,000. THIS SECTION DOES NOT LIMIT EITHER PARTY’S LIABILITY FOR BODILY INJURY OR PROPERTY DAMAGE.

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5 SECTION 4. COPYRIGHTS
The City shall own the copyright of any programs created or produced as a result of this Agreement, and Midpen Media shall make no claim of copyright or ownership of any such programming.

SECTION 5. DISTRIBUTION RIGHTS
Unless otherwise directed by the City, Midpen Media shall ensure that all programs produced under this Agreement shall be distributed on the governmental access channel(s) and the web, as described in this Agreement. This paragraph shall not be interpreted to restrict other distribution (beyond distribution on the channel(s) authorized by this Agreement), so long as such other distribution is with the prior written consent of the City and consistent with any pertinent guidelines established by the City, ap plicable PEG access operating policies and procedures, and applicable law.

SECTION 6. INSURANCE

6.1 Midpen Media, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit “C”, attached hereto and made a part hereof, and as follows in Section 6.1.1. Midpen Media and its contractors, if any, shall obtain a policy endorsement naming CITY as additional insured under any general liability or automobile policy or policies.

6.1.1 Cablecasters’ Errors and Omissions Insurance in an amount not less than $1,000,000, each occurrence and aggregate covering the content of productions which are cablecast on the access channel(s) in, at a minimum, the following areas: libel and slander; copyright or trademark infringement; infliction of emotional distress; invasion of privacy; plagiarism; and the misuse of musical or literary materials.

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

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

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6 6.4 The procuring of such required policy or policies of insurance will not be construed to limit Midpen Media’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, Midpen Me dia will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired.

SECTION 7. NONDISCRIMINATION

7.1 Midpen Media shall not discriminate against any person, employee or applicant for employment or subcontractor on the basis of race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, ge netic information or condition, housing status, marital status, familial status, weight or height of such person.

7.2 Midpen Media shall not discriminate in the delivery of services on the basis race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, m arital status, familial status, weight or height of such person.

SECTION 8. INDEPENDENT CONTRACTOR
It is understood and agreed that Midpen Media is an independent contractor and that no relationship of principal and agent or employer and employee exists between the Parties. If in the performance of this Agreement any third persons are employed by Midpen Media, such persons shall be entirely and exclusively under the control, direction and supervision of Midpen Media.

All terms of employment, including hours, wages, working conditions, discipline, hiring and discharging or any other term of employment shall be determined by Midpen Media, and the City shall have no right or authority over such persons or terms of employment.

SECTION 9. ASSIGNMENT

Neither this Agreement, nor any interest herein, shall be assigned, encumbered or transferred by Midpen Media or its current board or members to any other person, either directly or indirectly, except as may be expressly authorized in writing by the City prior to any such assignment, encumbrance or transfer.

SECTION 10. RECORDS

Midpen Media shall maintain all necessary books and records in connection with the services provided pursuant to this Agreement . Upon receipt of a reasonable request of the City, Midpen Media shall, at any time during its normal business hours, make available to the City or its agents or representatives all of its records with respect to all matters covered by this Agreement.

SECTION 11. NON-APPROPRIATIONS

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7 and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any City fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within the City's fiscal year in the e vent that funds are only appropriated for a portion of the fiscal years and funds for this Agreement are no longer available.

SECTION 12. DEFAULT; REMEDIES FOR DEFAULT

12.1 Midpen Media shall be in default of this Agreement if it fails to perform any of its material obligations under this Agreement. If the Media Center fails to cure a default within forty-five (45) days after the City gives Mipen Media notice of default, the City shall give written notice to the Media Center that it has materially breached this Agreement, and the notice of termination shall become effective on the date specified in the notice by the City.

12.2 Section 12.1 notwithstanding, Midpen Media shall be in immediate default of this Agreement if any of its officers, employees, or agents misappropriates public funds provided to Midpen Media under this Agreement by the City or any Cable Company pursuant to a franchise agreement, or if it fails to obtain and maintain its tax exemption status under Section 501(c)(3) of the Internal Revenue Code of 1986.

SECTION 13. NOTICES

13.1 All notices and other communications to be given by either Party may be given, in writing, by depositing the same in the United States mail, postage prepaid and addressed to the appropriate Party, as follows:

To City: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
To Midpen Media: Midpeninsula Community Media Center, Inc. 900 San Antonio Road
Palo Alto, CA 94303

13.2 Any Party may change its address for notice by written notice to the other Party at any time.

SECTION 14. MISCELLANEOUS PROVISIONS

14.1 Each Party agrees to execute all documents and do all things necessary and appropriate to carry out the provisions of this Agreement.

14.2 The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law.

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8 14.3 This Agreement shall be governed and interpreted in accordance with the laws of the State of California, without regard to its conflicts of law rules or principles.

14.4 In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California.

14.5 The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties.

14.6 All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement.

14.7 This Agreement is the entire agreement of the Parties and supersedes all prior negotiations and agreements whether written or oral. This Agreement may be amended only by written agreement and no purported oral amendment to this Agreement shall be valid.

14.8 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities.

14.9 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement.

[SIGNATURES ARE SET FORTH ON THE FOLLOWING PAGE]

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9 IN WITNESS WHEREOF, the Parties by their duly appointed representatives have executed this Agreement as of the date written above.

ATTEST: CITY OF PALO ALTO:

City Clerk Mayor

APPROVED AS TO FORM: MIDPENINSULA COMMUNITY MEDIA
CENTER, INC.:

________________________________ By:______________________________ City Attorney or Designee
Name:___________________________

Title:____________________________
APPROVED:

________________________________
City Manager of Designee

APPROVED:

________________________________
Chief Information Officer

APPROVED:

________________________________
Risk Manager
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Executive Director
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10 EXHIBIT A
Midpen Media shall cablecast the following meetings:

• All Palo Alto City Council meetings held in the City Council Chambers or Community Meeting Room
• All Palo Alto Planning and Transportation Commission meetings held in the City Council Chambers or Community Meeting Room
• All Palo Alto Utilities Advisory Commission meetings held in the City Council Chambers or Community Meeting Room
• All Palo Alto City Council Finance Committee meetings held in the City Council Chambers or Community Meeting Room
• All Palo Alto City Council Policy and Services Committee meetings held in the City Council Chambers or Community Meeting Room

• All Palo Alto Architectural Review Board meetings held in the City Council Chambers or Community Meeting Room
• All Palo Alto Historic Resources Board meetings held in the City Council Chambers or Community Meeting Room

• All Human Relations Commission meetings held in the City Council Chambers or Council Conference Room
• All Library Advisory Commission meetings held in the City Council Chambers or Community Meeting Room
• All Parks and Recreation Commission meetings held in the City Council Chambers or Community Meeting Room

• All Public Art Commission meetings held in the City Council Chambers or Community Meeting Room
• All City Council Rail Committee meetings held in the City Council Chambers or the Community Meeting Room

• All meetings of any other ad hoc or regular City Council committee that may be established by the City Council, in the City Council Chambers or the Community Meeting Room • Citizen Advisory Committee meetings
• Any special meetings as requested by the Palo Alto City Council or Palo Alto City Manager or his designee, provided five working days’ notice is given Docusign Envelope ID: E34B3B82-199D-4E3A-AF43-9D707922A7BE Item 6
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11 • As requested, any special events at Mitchel Park
• As requested, any Palo Alto City Library event
• Christmas Tree Lighting events and as requested, any holiday / special events • All mayoral-related special events
• All firefighter public seminar events
• All sibling city events as may be requested.

City may notify Midpen Media that the cablecast of any of the above meetings are not required for a certain date(s) or period of time. Further, if any of the legislative or advisory bodies listed no longer require cablecasting, City will notify Midpen Media. City may request that Midpen Media cablecast the meetings of other bodies formed during the term of this Agreement; the cablecasting of these additional meetings may be added by a writing signed by City’s Cable Coordinator and Midpen Media’s Chief Executive Officer.

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12 EXHIBIT “B”

SCHEDULE OF RATES

Midpen Media shall charge City according to the following schedule of rates for performing the following services related to governmental access programming:

Meeting Coverage (three-hour minimum):

City Hall Video Coverage: $126.00 per hour
Single Camera Coverage with City
equipment at location: $126.00 per hour
Single Camera Coverage with Media
Center equipment: $136.00 per hour
Remote video coverage with the studio $287.00 per hour
in a box. Crew of 3 requires 4.0 hrs/set
up, plus breakdown and transportation
time (minimum of 2 hrs of meeting coverage)
Parking Permit Reimbursement for meetings starting Visitor Permit Fee Before 3pm
Cancellation fee (for City’s
cancellation of scheduled Midpen Media
coverage without 24 hours' prior notice
the Midpen Media): $314.00 flat fee

Additional Services:

Web indexing and archiving: $115.00 per meeting
Server storage for archived meetings: $179.00 per month Video clip preparation: $105.00 per hour
I-Net Services: $145.00 per hour
Program Development:

Site visit and planning: $159.00 per hour Videography with equipment: $131.00 per hour Editing: $105.00 per hour Hosting and preparation: $145.00 per hour Studio crew per person: $65.00 per hour
Technical Consult/Troubleshooting $159.00 per hour
Duplication of videotapes/DVD’s of meetings:

Meetings under two hours $28.00 per dup Meetings over two hours $38.00 per dup

Provide training and / or certification in the use 10% discount Of equipment, channels, and services for City from generally Employees applicable rate

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13 in the Consumer Price Index – All Urban Consumers for the San Francisco -Oakland-San Jose MSA during the preceding calendar year.

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14 EXHIBIT C

INSURANCE REQUIREMENTS

CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN

AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.

AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW:

REQUIRED TYPE OF COVERAGE REQUIREMENT

MINIMUM LIMITS
EACH

OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION EMPLOYER’S

LIABILITY

STATUTORY

YES

GENERAL LIABILITY, INCLUDING

PERSONAL INJURY, BROAD FORM

PROPERTY DAMAGE BLANKET

CONTRACTUAL, AND FIRE LEGAL

LIABILITY

BODILY INJURY

PROPERTY DAMAGE

BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000

$1,000,000

YES AUTOMOBILE LIABILITY, INCLUDING

ALL OWNED, HIRED, NON-OWNED

BODILY INJURY
- EACH PERSON
- EACH OCCURRENCE

PROPERTY DAMAGE

BODILY INJURY AND PROPERTY

DAMAGE, COMBINED
$1,000,000
$1,000,000
$1,000,000

$1,000,000

$1,000,000
$1,000,000
$1,000,000
$1,000,000

$1,000,000

PROFESSIONAL LIABILITY, INCLUDING,

ERRORS AND OMISSIONS, MALPRACTICE
(WHEN APPLICABLE), AND NEGLIGENT

PERFORMANCE

ALL DAMAGES $1,000,000

YES
THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED : CONTRACTOR, AT ITS

SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT

THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE

COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.

I. INSURANCE COVERAGE MUST INCLUDE:

A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY.

II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE.

III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS”

A. PRIMARY COVERAGE

WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS Docusign Envelope ID: E34B3B82-199D-4E3A-AF43-9D707922A7BE Item 6
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15 POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.

B. CROSS LIABILITY

THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT

REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.

C. NOTICE OF CANCELLATION

1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON - PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.

2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON -PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.

NOTICES SHALL BE EMAILED TO: [email protected]

Docusign Envelope ID: E34B3B82-199D-4E3A-AF43-9D707922A7BE Item 6
Attachment A - Midpen
Media, Contract C26196212

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: IT Department
Meeting Date: January 12, 2026
Report #:2510-5289
TITLE
Approve the City Manager or Designee to Execute Purchase Order C26196045 with Insight Public Sector, Utilizing a County of Riverside Cooperative Contract ITARC-00930, to Procure Microsoft Enterprise Software Licensing, Cloud Services, and Server/Data Center Licensing for a 3-Year Term with a maximum Total Not-To-Exceed Amount of $2,506,936, inclusive of a Contingency in the Amount of $50,000 Annually.

RECOMMENDATION
Staff recommends that City Council approve and authorize the City Manager or designee to execute Purchase Order C26196045 with Insight Public Sector, utilizing the County of Riverside Cooperative Contract ITARC-00930, to procure Microsoft 365 enterprise licensing, Azure cloud services, Microsoft security and collaboration tools, server and SQL licensing, and related support services for a 3-year term (February 1, 2026 to January 31, 2029) with a base contract amount of $2,356,936 and an additional $50,000 annual contingency to accommodate potential increases in Microsoft licensing or cloud usage needs (Attachment A).

BACKGROUND
On February 24, 2020, City Council approved a 3-year contract with Insight Public Sector, leveraging the County of Riverside Enterprise Agreement for Microsoft products and services1.

The County of Riverside’s master agreement allowed the City to secure significant discounts through cooperative purchasing, exempt from Palo Alto’s competitive solicitation requirements under PAMC 2.30.360(j).
1 February 24, 2020 City Council Staff Report no. 10946, Item no. 7:
https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2020/id-10946.pdf?t=53319.98s
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On January 30, 2023, Council approved Amendment No. 1 to Contract C20177991, extending the term for another three years for $1.7 million through January 20263. This extension continued Microsoft G3/G5 enterprise licensing, Azure cloud commitments, and security add- ons such as Defender and Power BI. During this period, the City implemented expanded cybersecurity protections, deployed cloud-based backups, and utilized Microsoft scheduling and data services to support emergency response and business continuity.

ANALYSIS
City of Palo Alto relies on Microsoft products and cloud services to deliver core business functions, maintain cybersecurity, and provide essential collaboration tools to staff. The proposed 3-year contract with Insight Public Sector will continue Citywide access to Microsoft 365 enterprise licensing (M365 G3, G5, and F1), Copilot AI enhancements, Exchange Online, Teams collaboration and conferencing, Power BI, Project, Visio, and Power Automate. These services are critical for email, productivity applications, cloud-based collaboration, analytics, and workflow automation. The agreement also covers Azure cloud services and GitHub Enterprise, allowing the City to host applications, store data, and expand compute resources as needed.

In addition to collaboration and productivity platforms, the contract provides licensing for SQL Server, Windows Server Datacenter and Standard, System Center management tools, CIS security suite, and Remote Desktop Services. These technologies underpin the City’s data centers, financial and enterprise applications, and cybersecurity controls. Without a Microsoft Enterprise Agreement, the City would be required to purchase these licenses individually at significantly higher cost, while also losing key entitlements such as version upgrades, enterprise mobility and security protections, and disaster recovery capabilities.

Table 1: Three-Year Cost Breakdown
Contract Year Term Period Amount
Year 1 02/01/2026 – 01/31/2027 $785,645
Year 2 02/01/2027 – 01/31/2028 $785,645
Year 3 02/01/2028 – 01/31/2029 $785,645
Total $2,356,936
Note: Amounts shown above represent the base contract costs only and do not include the additional $50,000 annual contingency. Totals have been rounded to the nearest whole dollar and may not equal the sum of the individual line items due to the rounding of individual cents.

Solicitation Process
Insight Public Sector, as the awarded Licensing Solution Provider (LSP) under the County of Riverside cooperative contract, provides access to competitively negotiated Microsoft government pricing among the best available to local agencies. This three-year extension of 3 January 30, 2023 City Council Staff Report, Item no. 2: https://www.paloalto.gov/files/assets/public/v/1/agendas- minutes-reports/reports/city-manager-reports-cmrs/year-archive/2020/id-10946.pdf?t=53319.98 Item 7
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$2.36 million is 39.7% higher than the prior three years of $1.7 million. This price increase reflects growth and true-ups in the City’s license counts and security add-ons implemented during the prior term (e.g., expanded M365 licensing, security tools such as Microsoft Defender and related protections), and higher subscription-based consumption costs, including Azure cloud services and associated storage/backup usage that scale with operational demand. The proposed amount reflects current licensing requirements and the City’s projected cloud and security needs over the next three-year term to avoid service disruption and maintain compliance with Microsoft licensing requirements. By leveraging the Riverside agreement, the City secures competitive discounts on software licensing, cloud subscriptions, and security add- ons, while streamlining contract management and ensuring compliance with Microsoft licensing requirements.

FISCAL/RESOURCE IMPACT
Funding for Year 1 in the amount of $785,645 has already been appropriated through the City’s annual budget process. During the City’s annual budget development process, staff incorporated the projected licensing price increase into the budget. Funding for years 2 and 3 of the contract will be reviewed and considered as part of future budget development cycles.

The Information Technology Department (ITD) is supported through an internal service fund model. Approximately 49% of ITD’s costs are funded by the General Fund, with the remaining 51% supported by enterprise and special revenue funds.

STAKEHOLDER ENGAGEMENT
The services were coordinated with internal stakeholders and the service provider.

ENVIRONMENTAL REVIEW
The approval of this contract is exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15061(c)(3).

ATTACHMENTS
Attachment A: Insight Microsoft Licensing 3-Yr Quote
APPROVED BY:

Darren Numoto, Chief Information Officer
Staff Lead: Lisa Bolger, Assistant Director Information Technology/CTO Item 7
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1 of 5 11/13/2025
City of Palo Alto
Quotation: 1125-PaloAlto-Budgetary-Renewal-V5-MSEA-FA Insight Team Date: November 6, 2025 Robertson, Christopher
Enrollment: 68000857 (480) 409-6775
Contract: ITARC-00930
http://www.insight.com/azureterms
Customer understands and acknowledges that it is obtaining the software Products directly from Microsoft Corporation and that Insight provides no warranty to Customer covering the Products purchased hereunder. All warranties relating to such Products are granted solely by Microsoft Corporation.

Enrollment#: 68000857
Confidential. Cover Thank you for the opportunity to quote.

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Attachment A - Insight Microsoft Licensing 3-Yr
Quote

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11/13/2025 Page 2 of 5
City of Palo Alto
Quotation: 1125-PaloAlto-Budgetary-Renewal-V5-MSEA-FA
Date: November 6, 2025
Enrollment: 68000857
Contract: ITARC-00930
Part Number Item Name Level Purchase Period Pool Product Type Quantity Unit Price Extended Price Additional Products
9GS-00135 CIS Suite Datacenter Core ALng SA 2L D Added at Signing Servers Software Assurance 24 183.88$ 4,413.12$ 9GA-00313 CIS Suite Standard Core ALng SA 2L D Added at Signing Servers Software Assurance 248 39.19$ 9,719.12$ 359-00961 SQL CAL ALng SA User CAL D Added at Signing Servers Software Assurance 1000 37.73$ 37,730.00$ 810-04760 SQL Server Enterprise ALng SA D Added at Signing Servers Software Assurance 15 1,552.99$ 23,294.85$ 228-04433 SQL Server Standard ALng SA D Added at Signing Servers Software Assurance 12 162.27$ 1,947.24$ 9EP-00208 System Center DC Core ALng SA 2L D Added at Signing Servers Software Assurance 56 53.97$ 3,022.32$ 9EN-00198 System Center Standard Core ALng SA 2L D Added at Signing Servers Software Assurance 304 19.78$ 6,013.12$ QEJ-00003 Visual Studio Ent with GitHub ALng SA D Added at Signing Applications Software Assurance 2 1,077.53$ 2,155.06$ QEK-00003 Visual Studio Pro with GitHub ALng SA D Added at Signing Applications Software Assurance 1 308.67$ 308.67$ 6VC-01254 Win Remote Desktop Services CAL ALng SA UCAL D Added at Signing Servers Software Assurance 20 26.13$ 522.60$ 9EA-00278 Win Server DC Core ALng SA 2L D Added at Signing Servers Software Assurance 140 139.19$ 19,486.60$ 9EA-00279 Win Server DC Core ALng SASU 2L Win Server Std D Added at Signing Servers SA Step Up 484 274.16$ 132,693.44$ 9EM-00270 Win Server Standard Core ALng SA 2L D Added at Signing Servers Software Assurance 506 21.37$ 10,813.22$ Year One On-Premises Total: 252,119.36$
Year One Subscriptions Total: 533,526.00$
Year One Combined Total: 785,645.36$
Additional Products
9GS-00135 CIS Suite Datacenter Core ALng SA 2L D Added at Signing Servers Software Assurance 24 183.88$ 4,413.12$ 9GA-00313 CIS Suite Standard Core ALng SA 2L D Added at Signing Servers Software Assurance 248 39.19$ 9,719.12$ 359-00961 SQL CAL ALng SA User CAL D Added at Signing Servers Software Assurance 1000 37.73$ 37,730.00$ 810-04760 SQL Server Enterprise ALng SA D Added at Signing Servers Software Assurance 15 1,552.99$ 23,294.85$ 228-04433 SQL Server Standard ALng SA D Added at Signing Servers Software Assurance 12 162.27$ 1,947.24$ 9EP-00208 System Center DC Core ALng SA 2L D Added at Signing Servers Software Assurance 56 53.97$ 3,022.32$ 9EN-00198 System Center Standard Core ALng SA 2L D Added at Signing Servers Software Assurance 304 19.78$ 6,013.12$ QEJ-00003 Visual Studio Ent with GitHub ALng SA D Added at Signing Applications Software Assurance 2 1,077.53$ 2,155.06$ QEK-00003 Visual Studio Pro with GitHub ALng SA D Added at Signing Applications Software Assurance 1 308.67$ 308.67$ 6VC-01254 Win Remote Desktop Services CAL ALng SA UCAL D Added at Signing Servers Software Assurance 20 26.13$ 522.60$ 9EA-00278 Win Server DC Core ALng SA 2L D Added at Signing Servers Software Assurance 140 139.19$ 19,486.60$ 9EA-00279 Win Server DC Core ALng SASU 2L Win Server Std D Added at Signing Servers SA Step Up 484 274.16$ 132,693.44$ 9EM-00270 Win Server Standard Core ALng SA 2L D Added at Signing Servers Software Assurance 506 21.37$ 10,813.22$ Year Two On-Premises Total: 252,119.36$
Year Two Subscriptions Total: 533,526.00$
Year Two Combined Total: 785,645.36$
Additional Products
9GS-00135 CIS Suite Datacenter Core ALng SA 2L D Added at Signing Servers Software Assurance 24 183.88$ 4,413.12$ 9GA-00313 CIS Suite Standard Core ALng SA 2L D Added at Signing Servers Software Assurance 248 39.19$ 9,719.12$ 359-00961 SQL CAL ALng SA User CAL D Added at Signing Servers Software Assurance 1000 37.73$ 37,730.00$ 810-04760 SQL Server Enterprise ALng SA D Added at Signing Servers Software Assurance 15 1,552.99$ 23,294.85$ 228-04433 SQL Server Standard ALng SA D Added at Signing Servers Software Assurance 12 162.27$ 1,947.24$ 9EP-00208 System Center DC Core ALng SA 2L D Added at Signing Servers Software Assurance 56 53.97$ 3,022.32$ Confidential. EA At Signing Thank you for the opportunity to quote.

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11/13/2025 Page 3 of 59EN-00198 System Center Standard Core ALng SA 2L D Added at Signing Servers Software Assurance 304 19.78$ 6,013.12$ QEJ-00003 Visual Studio Ent with GitHub ALng SA D Added at Signing Applications Software Assurance 2 1,077.53$ 2,155.06$ QEK-00003 Visual Studio Pro with GitHub ALng SA D Added at Signing Applications Software Assurance 1 308.67$ 308.67$ 6VC-01254 Win Remote Desktop Services CAL ALng SA UCAL D Added at Signing Servers Software Assurance 20 26.13$ 522.60$ 9EA-00278 Win Server DC Core ALng SA 2L D Added at Signing Servers Software Assurance 140 139.19$ 19,486.60$ 9EA-00279 Win Server DC Core ALng SASU 2L Win Server Std D Added at Signing Servers SA Step Up 484 274.16$ 132,693.44$ 9EM-00270 Win Server Standard Core ALng SA 2L D Added at Signing Servers Software Assurance 506 21.37$ 10,813.22$ Year Three On-Premises Total: 252,119.36$
Year Three Subscriptions Total: 533,526.00$
Year Three Combined Total: 785,645.36$
Three Year On-Premises Total: 756,358.08$
Three Year Subscriptions Total: 1,600,578.00$
Three Year Combined Total: 2,356,936.08$
Confidential. EA At Signing Thank you for the opportunity to quote.

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Attachment A - Insight Microsoft Licensing 3-Yr Quote

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11/13/2025 Page 4 of 5
City of Palo Alto
Quotation: 1125-PaloAlto-Budgetary-Renewal-V5-MSEA-FA Subscription Start Date: 2/1/2026 Date: November 6, 2025 Subscription End Date: 1/31/2029 Enrollment: 68000857
Contract: ITARC-00930
Year One: 12 Months 12
Part Number Item Name Level Purchase Period Pool Product Type Quantity Term Price Extended Price Enterprise Products - Lead
AAD-34700 M365 G3 Unified FSA Renewal GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 1100 $328.82 361,702.00$ AAD-34704 M365 G3 Unified FUSL GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 225 $386.81 87,032.25$ AAL-45735 M365 G5 GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 5 $612.45 3,062.25$ Additional Products - Commercial Azure
AAA-35418 Azure Monetary Commitment Provision D Non-Specific Servers Monthly Subscriptions-VolumeLicense 1 $0.00 -$ Additional Products - Lead
J5U-00004 AzureprepaymentG ShrdSvr ALNG SubsVL MVL Commit Provision D Non-Specific Servers Monthly Subscriptions-VolumeLicense 1 $0.00 -$ 3GU-00001 Defender O365 P1 GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 30 $18.32 549.60$ 3NS-00003 Exchange Online P2 GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 150 $73.02 10,953.00$ PEY-00002 GitHub Enterprise Sub Per User D Non-Specific Applications Monthly Subscriptions-VolumeLicense 15 $191.82 2,877.30$ EP2-24658 M365 Copilot GCC Sub Add-on D Non-Specific Applications Monthly Subscriptions-VolumeLicense 25 $366.30 9,157.50$ 3EB-00001 M365 F1 GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 100 $23.44 2,344.00$ M9T-00002 O365 Extra File Storage GCC Sub Add-on Extra Storage 1 GB D Non-Specific Servers Monthly Subscriptions-VolumeLicense 5000 $2.20 11,000.00$ 7E7-00001 Planner & Project P3 FSA GCC Renewal Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 100 $232.97 23,297.00$ 7VX-00001 Planner & Project P5 GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 2 $502.32 1,004.64$ 1O5-00001 Power Automate Premium GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 2 $161.17 322.34$ HJR-00002 Power BI Premium EM1 GCC Sub D Non-Specific Servers Monthly Subscriptions-VolumeLicense 1 $5,708.18 5,708.18$ 6U1-00004 Power BI Premium USL GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 6 $200.98 1,205.88$ DDJ-00001 Power BI Pro GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 39 $100.37 3,914.43$ NYH-00001 Teams AC with Dial Out US/CA GCC Sub Add-on D Non-Specific Servers Monthly Subscriptions-VolumeLicense 1325 $0.00 -$ LM9-00001 Teams Domestic Calling Plan GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 2 $128.94 257.88$ VA1-00001 Teams Rooms Pro GCC Sub Per Device D Non-Specific Servers Monthly Subscriptions-VolumeLicense 5 $429.79 2,148.95$ 9K4-00003 Visio P2 FSA GCC Renewal Sub Per User D Non-Specific Applications Monthly Subscriptions-VolumeLicense 60 $116.48 6,988.80$ 12 Month Total: 533,526.00$
Year Two: 12 Months 12
Enterprise Products - Lead
AAD-34700 M365 G3 Unified FSA Renewal GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 1100 $328.82 361,702.00$ AAD-34704 M365 G3 Unified FUSL GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 225 $386.81 87,032.25$ AAL-45735 M365 G5 GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 5 $612.45 3,062.25$ Additional Products - Commercial Azure
AAA-35418 Azure Monetary Commitment Provision D Non-Specific Servers Monthly Subscriptions-VolumeLicense 1 $0.00 -$ Additional Products - Lead
J5U-00004 AzureprepaymentG ShrdSvr ALNG SubsVL MVL Commit Provision D Non-Specific Servers Monthly Subscriptions-VolumeLicense 1 $0.00 -$ 3GU-00001 Defender O365 P1 GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 30 $18.32 549.60$ 3NS-00003 Exchange Online P2 GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 150 $73.02 10,953.00$ PEY-00002 GitHub Enterprise Sub Per User D Non-Specific Applications Monthly Subscriptions-VolumeLicense 15 $191.82 2,877.30$ EP2-24658 M365 Copilot GCC Sub Add-on D Non-Specific Applications Monthly Subscriptions-VolumeLicense 25 $366.30 9,157.50$ 3EB-00001 M365 F1 GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 100 $23.44 2,344.00$ M9T-00002 O365 Extra File Storage GCC Sub Add-on Extra Storage 1 GB D Non-Specific Servers Monthly Subscriptions-VolumeLicense 5000 $2.20 11,000.00$ 7E7-00001 Planner & Project P3 FSA GCC Renewal Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 100 $232.97 23,297.00$ 7VX-00001 Planner & Project P5 GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 2 $502.32 1,004.64$ 1O5-00001 Power Automate Premium GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 2 $161.17 322.34$ HJR-00002 Power BI Premium EM1 GCC Sub D Non-Specific Servers Monthly Subscriptions-VolumeLicense 1 $5,708.18 5,708.18$ 6U1-00004 Power BI Premium USL GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 6 $200.98 1,205.88$ DDJ-00001 Power BI Pro GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 39 $100.37 3,914.43$ NYH-00001 Teams AC with Dial Out US/CA GCC Sub Add-on D Non-Specific Servers Monthly Subscriptions-VolumeLicense 1325 $0.00 -$ LM9-00001 Teams Domestic Calling Plan GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 2 $128.94 257.88$ VA1-00001 Teams Rooms Pro GCC Sub Per Device D Non-Specific Servers Monthly Subscriptions-VolumeLicense 5 $429.79 2,148.95$ 9K4-00003 Visio P2 FSA GCC Renewal Sub Per User D Non-Specific Applications Monthly Subscriptions-VolumeLicense 60 $116.48 6,988.80$ 12 Month Total: 533,526.00$
Year Three: 12 Months 12
Confidential. EA Monthly Subscriptions Thank you for the opportunity to quote.

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11/13/2025 Page 5 of 5Enterprise Products - Lead
AAD-34700 M365 G3 Unified FSA Renewal GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 1100 $328.82 361,702.00$ AAD-34704 M365 G3 Unified FUSL GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 225 $386.81 87,032.25$ AAL-45735 M365 G5 GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 5 $612.45 3,062.25$ Additional Products - Commercial Azure
AAA-35418 Azure Monetary Commitment Provision D Non-Specific Servers Monthly Subscriptions-VolumeLicense 1 $0.00 -$ Additional Products - Lead
J5U-00004 AzureprepaymentG ShrdSvr ALNG SubsVL MVL Commit Provision D Non-Specific Servers Monthly Subscriptions-VolumeLicense 1 $0.00 -$ 3GU-00001 Defender O365 P1 GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 30 $18.32 549.60$ 3NS-00003 Exchange Online P2 GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 150 $73.02 10,953.00$ PEY-00002 GitHub Enterprise Sub Per User D Non-Specific Applications Monthly Subscriptions-VolumeLicense 15 $191.82 2,877.30$ EP2-24658 M365 Copilot GCC Sub Add-on D Non-Specific Applications Monthly Subscriptions-VolumeLicense 25 $366.30 9,157.50$ 3EB-00001 M365 F1 GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 100 $23.44 2,344.00$ M9T-00002 O365 Extra File Storage GCC Sub Add-on Extra Storage 1 GB D Non-Specific Servers Monthly Subscriptions-VolumeLicense 5000 $2.20 11,000.00$ 7E7-00001 Planner & Project P3 FSA GCC Renewal Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 100 $232.97 23,297.00$ 7VX-00001 Planner & Project P5 GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 2 $502.32 1,004.64$ 1O5-00001 Power Automate Premium GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 2 $161.17 322.34$ HJR-00002 Power BI Premium EM1 GCC Sub D Non-Specific Servers Monthly Subscriptions-VolumeLicense 1 $5,708.18 5,708.18$ 6U1-00004 Power BI Premium USL GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 6 $200.98 1,205.88$ DDJ-00001 Power BI Pro GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 39 $100.37 3,914.43$ NYH-00001 Teams AC with Dial Out US/CA GCC Sub Add-on D Non-Specific Servers Monthly Subscriptions-VolumeLicense 1325 $0.00 -$ LM9-00001 Teams Domestic Calling Plan GCC Sub Per User D Non-Specific Servers Monthly Subscriptions-VolumeLicense 2 $128.94 257.88$ VA1-00001 Teams Rooms Pro GCC Sub Per Device D Non-Specific Servers Monthly Subscriptions-VolumeLicense 5 $429.79 2,148.95$ 9K4-00003 Visio P2 FSA GCC Renewal Sub Per User D Non-Specific Applications Monthly Subscriptions-VolumeLicense 60 $116.48 6,988.80$ 12 Month Total: 533,526.00$
36 Month Total: 1,600,578.00$
Confidential. EA Monthly Subscriptions Thank you for the opportunity to quote.

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Police
Meeting Date: January 12, 2026
Report #:2512-5609
TITLE
FIRST READING: Adoption of an ordinance to Amend Chapters 4.54 and 4.56 of the Palo Alto Municipal Code to Amend the Regulation of Massage Establishments and Hot Tub/Sauna Establishments as Recommended by the Policy & Services Committee; and Adoption of a Resolution to Amend the Administrative Penalty Schedule to Amend Related Penalties; CEQA status - not a project.

RECOMMENDATION
Staff recommends the City Council adopt an ordinance (Attachment A) amending the Palo Alto Municipal Code Chapter 4.54 on massage establishments and Chapter 4.56 on hot tub/sauna establishments, as unanimously recommended by the Policy and Services Committee on October 29, 2025 with minor updates from public feedback as detailed below in this staff report. Staff also recommend adoption of a resolution amending the Municipal Penalty Schedule (Attachment B) to conform existing penalties to new code numbering and delete penalties for sections no longer used.

EXECUTIVE SUMMARY
The proposed ordinance updates the Palo Alto Municipal Code to regulate massage and massage therapists in Palo Alto as well as hot tub/sauna businesses. For massage businesses and therapists, the codes provide clear standards to ensure massage therapy businesses are run safely and legally by setting basic rules for their buildings, cleanliness, and staff qualifications, while also deterring illegal activities like human trafficking, wage theft, and prostitution. This update allows only massage therapists certified by the state-sanctioned non-profit California Massage Therapy Council (CAMTC) to conduct massage in the city for the businesses. The new framework also offers City enforcement staff a broader mandate, increased options for enforcement, and clearer parameters for action. Updates to existing fees will be considered.

For Hot Tub/Sauna establishments, the proposed code directs the business operator to comply with County of Santa Clara requirements so the city can delete redundant codes.

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BACKGROUND
Palo Alto’s regulation of massage and hot tub/sauna businesses has evolved over the years. For massage businesses, it began formally in the early 1970s when the city enacted PAMC 4.54 to regulate massage businesses, in response to concerns about health and public safety. Codes were removed in 1997 to allow home-based massage businesses1.

In 2008, the regulatory landscape for massage therapy in California underwent a pivotal transformation with the passage of Senate Bill 731 (SB 731). This legislation established the California Massage Therapy Council (CAMTC), a private, non-profit organization tasked with overseeing the voluntary statewide certification of massage professionals. By creating a unified framework for certification and granting CAMTC the authority to conduct background checks and regulate massage schools, SB 731 replaced the previous patchwork of inconsistent local regulations with uniform state standards, thereby elevating professional standards and enhancing public protection. Further regulatory updates by state legislature came in 2011 (AB 619), reverting some control over massage business licensing back to local jurisdictions. In response, the City adopted an ordinance updating the Municipal Code in 20122. This is the last time the PAMC was updated for massage.

Staff has identified 19 existing massage establishments that will need to obtain establishment permits under the new code. Every massage therapist working in Palo Alto is already CAMTC- certified or is working on obtaining certification. Staff has identified one Hot Tub/Sauna business.

ANALYSIS
This discussion will address massage businesses and then hot tub/saunas. Since the last time Palo Alto updated the PAMC related to massage businesses in 2012, several more state assembly bills have been passed. The proposed ordinance would align Palo Alto with current state law, the CAMTC standards, and updated regulatory practices, fostering a safe and healthy environment for the massage business community, service providers, and the customer.

Similar to the current code, the proposed code requires massage establishments and practitioners to meet certain minimum standards, including building, sanitation, and 1 City Council, June 10, 1997 Report #273-97
https://portal.laserfiche.com/Portal/DocView.aspx?id=60793&repo=r-704298fc&searchid=a23b43a1-b630-493e- 87c1-21a2f6be1f37)
2 City Council, July 23, 2012, Report #2988 https://portal.laserfiche.com/Portal/DocView.aspx?id=108080&repo=r- 704298fc&searchid=18851bab-7ab7-466f-b71b-48eff2c9bd20) Passed on September 9, 2012 https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes- reports/agendasminutes/city-council-agendas-minutes/00-archive/2012/09-04-12-agenda.pdf) Item 8
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operational requirements. Massage establishments will continue to have a local permit to operate, with provisions for annual permit renewals, application procedures, and associated fees. Like current code, the proposed code requires permits to be displayed where they are easily visible and allows city officials to inspect establishments to ensure compliance. Both existing and proposed codes provide a process for denying, suspending, or revoking permits if applicants or permit holders are found to have violated certain rules or laws, and in both, there is an appeals process for those who have been denied a permit or had one revoked.

Additionally, both laws include exemptions for certain professionals, such as physicians, nurses, physical therapists, and people who are certified by the California Massage Therapy Council (CAMTC), meaning those individuals do not need to obtain additional local permits. Both the existing and proposed codes have detailed definitions to clarify the terms used throughout the law, and they require compliance with other relevant city and state codes, such as building and health regulations. Overall, the main similarities lie in their goals of ensuring only qualified people can operate or work in massage establishments, maintaining high health and safety standards, and providing clear procedures for permitting, enforcement, and appeals for both businesses and their practitioners.

Despite many similarities with the existing code, the proposed code introduces several major changes. One of the biggest differences is the strong reliance on California’s statewide certification system for individual professionals by the non-profit, non-governmental CAMTC.

Under the new code, only CAMTC-certified professionals can legally provide massage services for compensation, eliminating the City’s existing system of issuing separate permits to individual massage technicians and trainees who do not want to be state-certified. This will shift credentialing and background checks of individual therapists to the non-profit, whereas the existing code required the police chief to review the education, background, and criminal history for each applicant. Another difference is that the proposed code adds more clarity for massage operators about the permitting process. The proposed code details exactly what information is required for business permits and includes more requirements for transparency, such as proof of lease or property owner acknowledgment and documentation of compliance with wage and hour laws. The proposed code also expands operational requirements, like stricter rules on business hours, customer privacy, and hygiene, and prohibits certain items like beds. There are also more specific rules for facility layout, signage, and clothing requirements, and mandatory posting of human trafficking notices.

Additionally, the proposed code sets out more comprehensive grounds and procedures for permit suspension or revocation, including violations of labor laws and advertising regulations.

It also gives the City the power to impose a five-year moratorium on massage businesses at locations where a permit was revoked. Finally, the proposed code adds administrative penalties and citations as enforcement tools and more clearly separates mobile and home-based businesses from fixed establishments. These changes aim to raise standards for public safety and business integrity.

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Staff would like to express appreciation to the Santa Clara County Human Trafficking Task Force, CAMTC staff, and City of Sunnyvale personnel for their valuable input and collaboration in developing these amendments to the massage ordinance. Their expertise and support were instrumental in shaping these changes.

For hot tub/sauna code sections, much of the code is deleted and the licensing requirement is changed from City issuance to a requirement it be licensed by the County of Santa Clara, which already licenses such businesses for compliance with County environmental health standards.

Since the Policy and Services review, the Department conducted two outreach sessions and follow-up discussions with the business community and updated the ordinance Policy and Services recommended advancing to City Council based on the feedback received. Those updates are reflected in the ordinance in Attachment A and include:

1.Hours of Operation
For massage establishments that have been in operation for 10 years or longer, the Department reinstated an exemption process to allow establishments to provide massage services past 10:00 p.m. However, even with an exemption, no massage shall conclude later than midnight. The hour restriction does not apply to the use of hot tubs and saunas at combined hot tub/massage establishments.

2.Posting of Price List
The originally proposed ordinance required all services and prices to be displayed in a public area. In recognition of a combination of massage and non-massage (hot tub) offerings and variable pricing (e.g., based on time, day, or holiday), the Department updated the proposed ordinance to require only that massage service prices be posted, with an allowance for price variability.

3. Main Entry Door
The Department has updated the proposed ordinance to permit one or more entry doors leading directly to the reception and waiting area, rather than limiting establishments to a single entry. This change is intended to prevent patron entry from inconspicuous or rear entrances while allowing flexibility in business layout.

4. Locking of Interior Doors
The updated language now allows practical exceptions to the prohibition on locking interior doors. Hot tub rooms, private offices, storage rooms, and equipment rooms are now exempt from this requirement.

5. Beds and Soft Mattresses
The revised ordinance permits soft mattresses in hot tub rooms, recognizing their role in patron safety and comfort.

6. Alcohol Service
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does not apply to the non-massage areas of the establishment. Alcohol service is still subject to other laws, including California Alcohol Beverage Control as may be applicable.

7. Sandal/Flip Flop Requirement
The Department updated the requirement in the proposed ordinance to state that sandals or flip flops must be provided to patrons if they are offered use of shower facilities. This replaces the previous language, which prohibited patrons from using shower facilities unless wearing slip-resistant sandals or flip flops.

FISCAL/RESOURCE IMPACT
The work to create this proposal has been done by City staff with no-cost support by the previously mentioned organizations. The adoption of the proposed ordinance would not significantly impact existing workload of staff. Department revenue and expenses are not expected to change. Updated fees related to permitting will be updated in the FY 2027 budget cycle if they are required.

STAKEHOLDER ENGAGEMENT
As massage establishments and massage therapist applicants have contacted the Police Department’s code enforcement over the last year, staff has notified them that the City is exploring significant updates regarding regulation and permitting processes for massage establishments. As this process moves along, staff will engage individually with established businesses to inform them of the proposed changes.

The Department held an in-person information session on November 18, 2025, at the Downtown Library with establishment representatives. From that meeting and others, the Department updated the proposed ordinance to reflect valuable feedback. A second meeting was held with the establishments on December 11, 2025, to review those changes. What is presented with this report reflects those updates since Policy and Services reviewed the originally proposed ordinance.

ENVIRONMENTAL REVIEW
Council action on this item is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3), as it can be seen with certainty that the activity will not have a significant effect on the environment.

ATTACHMENTS
Attachment A: Ordinance Amending PAMC Chapters 4.54 and 4.56 Attachment B: Resolution Amending and Restating the Administrative Penalty Schedule to Amend Penalties for PAMC Chapters 4.54 and 4.56.

APPROVED BY:

Andrew Binder, Police Chief
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Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Amending Chapter 4.54 (“Massage Establishments”) and Chapter 4.56 (Hot Tub/Sauna Establishments) of Title 4 (Business Licenses and Regulations)

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

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

A. Massage establishments are primarily regulated in the Palo Alto Municipal Code at PAMC Chapter 4.54. The last major update to this chapter was in 2012. Chapter 4.54 is currently enforced primarily by the Palo Alto Police Department.

B. Massage is also regulated in state law under the Massage Therapy Act, codified in the Business and Professions Code section 4600 et seq. The State Legislature enacted the Act in 2008. The Act was substantially ame nded in 2014 under AB 1147, and has been amended again in 2025 under AB 1504.

C. Through this ordinance, the City desires to amend Chapter 4.54 in order to respond to the changes to the Act and codify existing practi ces. Foremost, this ordinance will result in the City no longer licensing individual massage technicians; instead, technicians must be certified by the California Massage Therapy Council (“CAMTC”). The CAMTC is the state- recognized body in charge of such certif ication and enacts statewide standards for training and certification. The CAMTC also approves massage schools in an effort to uphold training standards and prevent bad actors from opening degree mills. This update also ensures that local regulations stay current with industry standards and public health requirements, enhancing safety and professionalism. Thes e updates also help address new trends, prevent illicit activities, and clarify licensing procedures for businesses.

D. This ordinance also amends Chapter 4.56 (H ot Tub/Sauna Establishments) to remove existing permitting requirements. These es tablishments are already regulated by the County’s Department of Environmental Health.

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SECTION 2. Chapter 4.54 (Massage Establis hments) of the Palo Alto Municipal Code is hereby amended and restated in its entirety to read as follows:

4.54.010 Purpose and intent.

In enacting this chapter, the City Council reco gnizes that massage therapy is a professional pursuit which can offer the public valuable health and therapeutic services, but that unless properly regulated, the practi ce of massage therapy and the operation of massage businesses may be associated with unlawful activity and po se a threat to the quality of life in the local community. It is the purpose and intent of this chapter to provide for the orderly regulation of offices and establishments providing massage th erapy services, and to prevent and discourage the misuse of massage therapy as a front for human trafficking, prostitution, and related activities in violation of state law, all in the interests of the public health, safety, and welfare, by providing certain minimum building, sanitation, and oper ation standards for such businesses, and by requiring certain minimum qualifications for the operators and practitioners of such businesses.

It is the further intent of this chapter to streamline local massage therapy permitting procedures, while still facilitating and advancing the ethical practice of massage therapy, by relying upon the uniform statewide regulations enacted by the Le gislature in 2008 as Business and Professions Code Sections 4600 et seq., known as the Mass age Therapy Act, as subsequently amended, and by restricting the commercial practice of massage in the city to those persons duly certified to practice by the California Massage Therapy Council formed pursuant to those statutes.

4.54.020 Definitions.

For the purpose of this chapter, unless the co ntext clearly requires a different meaning, the words, terms, and phrases set forth in this sect ion shall have the meanings that are given them in this section:

"Authorized massage professional" means a massage professional who is identified in a permit issued pursuant to this chapter as a person employed or retained by a massage establishment to practice massage.

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"California massage therapy council" or "CAMTC" means the massage therapy organization formed pursuant to Business and Professions Code Section 4600 et seq.

"CAMTC-certified massage professional" means any individual currently certified by the California Massage Therapy Council as a massage therapist or massage practitioner pursuant to Business and Professions Code Section 4600 et seq.

"Compensation" means the payment, loan, advance, donation, contribution, deposit, exchange, or gift of money or anything of value.

"Department" means the Chief of the Palo Alto Police Department or designee charged with the administration of this chapter.

"Inspector" means the person or persons designated by the city to conduct any inspections required or permitted under this chapter.

"Massage," "massage therapy," and/or "bodywork" for purposes of this chapter mean the skillful application of touch, including but not limited to, pressure, stroking, kneading, compression on or movement of the external surfaces of the body by a practitioner to produce increased awareness, relaxation, pain relief, injury rehabilitation, or neuromuscular reeducation.

"Massage establishment" means any business that offers massage therapy, baths or health treatments including, but not limited to, aromatherapy, vapor, shower, electric tub, sponge, hot towels, mineral fermentation, sauna, steam or any other type of bath, involving massages or baths in exchange for compensation. Home-based massage businesses and businesses that provide mobile massage services are also considered to be massage establishments. For purposes of this chapter, the term "massage establishment" may be applied to include establishments which offer or advertise themselves as providing "relaxation" or "tanning" Item 8
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where the essential nature of the interaction between the employee and the customer involves "massage" as defined herein. The terms, names or phrases listed on business license or fictitious name application forms are not necessarily conclusive as to the nature of the business.

"Owner" or "massage establishment owner" means any of the following persons:
(1) The sole proprietor of a sole proprietorship operating a massage establishment. (2) Any general partner of a general or limited partnership that owns a massage establishment.
(3) Any person who has a ten percent or greater ownership interest in a corporation that owns a massage establishment.
(4) Any person who is a member of a limited liability company that owns a massage establishment.
(5) All owners of any other type of business association that owns a massage establishment. "Operator" or "massage establishment operator" means any person who is an owner or manager of a massage establishment.

"Mobile massage service" means the engaging in or carrying on of massage therapy for compensation at locations other than a massage establishment at a fixed location.

"Patron" means an individual on the premises of a massage establishment for the purpose of receiving massage therapy.

"Person" means any individual, firm, association, partnership, corporation, joint venture, limited liability company, or combination of individuals.

"Reception and waiting area" means an area immediately inside the main entry door of the massage establishment dedicated to the reception and waiting of patrons or visitors of the massage establishment and which is not a massage therapy room or otherwise used for the provision of massage therapy services.

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“School of massage” means any school or institution of learning that is recognized as an approved school pursuant to Business and Professions Code Division 2, Chapter 10.5 (known as the Massage Therapy Act), as may be amended.

"Sole proprietorship" means a massage establishment where the owner owns one hundred percent of the business and has one or no other employees or independent contractors.

"Visitor" means any individual not retained or employed by the massage establishment and not receiving or waiting to receive massage therapy services, but excluding law enforcement personnel or governmental officials performing governmental business.

4.54.030 Business registration required.

The requirements of this chapter are in addition to any business registration and business tax requirements imposed pursuant to PAMC Chapters 4.60 and 2.37, respectively of this code.

4.54.040 Other permits and authorizations required.

The requirements of this chapter are in addition to any permits or authorizations that may be required under other applicable laws including but not limited to the city's building, fire, zoning, and health regulations.

4.54.050 Exemptions.

This chapter shall not apply to the following classes of individuals while engaged in the performance of the duties of their respective professions:
(a) Physicians, surgeons, chiropractors, osteopaths, podiatrists, physical therapists, nurses, acupuncturists or any other person licensed to practice any healing art under the provisions of Division 2 (commencing with Section 500) of the Business and Professions Code when engaging in such practice within the scope of his or her license. This subsection (a) shall apply only to a person who meets the qualifications above and shall Item 8
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not extend to any other person, including by virtue of being a tenant, independent contractor, employee, or co-worker of the exempted person. (b) Trainers of any amateur, semi-professional, or professional athlete or athletic team, so long as such persons do not practice massage therapy as their primary occupation at any location where they provide such services in the city. (c) Barbers, estheticians, and cosmetologists who are duly licensed under the laws of the State of California, while engaging in practices within the scope of their licenses. This subsection (c) shall apply only to a person who meets the qualifications above and shall not extend to any other person, including by virtue of being a tenant, independent contractor, employee, or co-worker of the exempted person. (d) Individuals administering massages or health treatments involving massage to persons participating in single occurrence athletic, recreational, or educational events such as road races, track meets, triathlons, educational events, or conferences, provided that the event is open to the public or to a significant segment of the public such as employees of sponsoring or participating corporations, and the massage services are provided at the site of the event during, immediately preceding, or immediately following the event.
(e) Individuals administering massages or health treatments involving massage to persons at a state-licensed “general acute care hospital” or other “health facilities” as defined by California Health and Safety Code section 1250 when employed or contracted at the direction of the hospital or health facility.
(f) Somatic practitioners who use no physical touch of any kind at any time in their practice.
(g) Enrolled students of a school of massage when they are performing massage within the city as part of a formal supervised internship or training program operated by the school, without compensation other than school credit, on the premises of a massage establishment duly authorized to operate pursuant to the terms of this chapter; and provided that the operator of the massage establishment has first notified the Item 8
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Department in writing of the name, residence address, and school of the students and the dates of the trainings.

4.54.060 CAMTC certification required.

It is unlawful for any individual to practice ma ssage therapy for compensation within the city unless that individual is a CAMTC-certified massage professional.

4.54.070 Reserved.

4.54.080 Massage establishment permit required—Prohibited conduct.

(a) It is unlawful for any person to operate a massage establishment within the city without first obtaining a massage establishment permit from the Department. (b) It is unlawful for a massage establishment operator to employ or retain any person to practice massage therapy for compensation, or to allow any person to perform massage therapy for compensation on the premises of a massage establishment, unless that person is a CAMTC-certified massage professional and unless that person is identified as an authorized massage professional on the permit issued pursuant to this chapter. For purposes of this chapter, a massage establishment operator "employs or retains" a person to practice massage therapy for compensation when:
(1) That person is a directly paid employee of the massage establishment; or (2) That person's association with a massage establishment is that of an independent contractor who receives compensation for massage therapy provided to patrons of the massage establishment; or
(3) That person receives a referral of patrons from the massage establishment and, at any time before or after the referral, arranges in any way for compensation to flow to the massage establishment operator.

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(c) It is unlawful for a massage establishment to operate under any name or conduct business under any designation not specified in the massage establishment permit issued pursuant to this chapter.
(d) It is unlawful for a massage establishment to continue to operate following the sale or transfer of any interest in the massage establishment to a person who was not identified as an owner in the massage establishment permit application.

4.54.090 Permit application.

The owners of the massage establishment shall file an application for a permit on a form provided by the Department. The application shall be accompanied by the fee established by the city's fee schedule. The application shall include the following information:
(a) The name, address, and telephone number of the massage establishment. (b) The name, residence address and telephone number, and business address and telephone number of each owner of the massage establishment. (c) The form of business under which the applicant will be conducting the massage `establishment, i.e., corporation, general or limited partnership, limited liability company, or other form. If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation, together with the names and residence addresses of each of its officers, directors, and each shareholder holding more than ten percent of the stock of the corporation. If the applicant is a general or limited partnership, the application shall set forth the name and residence address of each of the partners, including limited partners. If one or more of the partners is a corporation, the provisions of this section pertaining to a corporate applicant shall apply. If the applicant is a limited liability company, the application shall set forth the name and residence address of each of the members. If one or more of the members is a partnership, limited liability company, or corporation, the provisions of this section pertaining to a partnership, limited liability company, or corporate applicant shall apply, as applicable.

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(d) The name, address, and telephone number of the owner of the real property upon, in, or from which the certified massage establishment is to be operated. In the event the applicant is not the legal owner of the property, the application shall be accompanied by a copy of any written lease between the applicant and the property owner authorizing use of the premises for a massage establishment, or, alternatively, if there is no written lease, then a written, notarized acknowledgment from the property owner that the property owner has been advised that a massage establishment will be operated by the applicant upon, in, or from the property owner's property. (e) If the massage establishment will be located on a property in a residential or commercial condominium or other common interest development, the applicant shall submit a notarized statement from the homeowner's association or condominium owner's association acknowledging that the association has been advised that a massage establishment will be operated by the applicant and that such use of the property is allowed by the property's covenants, codes, and restrictions. This requirement is in addition to any applicable zoning code requirements or regulations. (f) A description of the proposed massage establishment, including the type of treatments to be administered.
(g) The name of each individual who the massage establishment employs or retains to perform massage therapy for compensation, whether on or off the massage establishment premises.
(h) The name of each individual who is regularly employed or retained by the massage establishment to perform services on the premises other than massage therapy, and the nature of their services.
(i) For each individual who the massage establishment does or will employ or retain to perform massage therapy for compensation, whether on or off the massage establishment premises, a copy of that individual's current certification from the CAMTC as a certified massage practitioner or certified massage therapist, and a copy of his or her current CAMTC-issued identification card.

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(j) For each owner of the massage establishment who is a CAMTC-certified massage professional, a copy of his or her current certification from the CAMTC as a certified massage practitioner or as a certified massage therapist and a copy of his or her current CAMTC-issued identification card.
(k) For each owner of the massage establishment who is not a CAMTC-certified massage professional, the following information:
(1) Whether any owner of the massage establishment has within the five years immediately preceding the date of application been convicted of any felony in any state.
(2) Whether any owner of the massage establishment is currently required to register under the provisions of Section 290 of the California Penal Code. (3) The business, occupation, and employment history of each owner of the massage establishment for five years preceding the date of application, and the inclusive dates of same.
(4) One set of fingerprints, and any required fee for such fingerprinting shall be paid by the applicant.

(l) Whether any certificate, license or permit has ever been issued to the applicant by any jurisdiction under the provisions of any ordinance or statute governing massage or somatic practice, and as to any such certificate, license or permit, the name and address of the issuing authority, the effective dates of such certificate, license or permit, whether such certificate, license or permit was ever suspended, revoked, withdrawn, or denied; and copies of any documentary materials relating to such suspension, revocation, withdrawal, or denial.
(m) Such other information as may be required by the permit authority to determine compliance with any other eligibility requirements for issuance of the permit as specified by federal, state, or local law.
(n) A statement that within the last five years the applicant has not failed to comply with a final court order or administrative action of an investigatory agency finding a violation of Item 8
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applicable federal, state and local wage and hour laws, including, but not limited to, the Federal Fair Labor Standards Act, the California Labor Code, and any local minimum wage ordinance or prevailing wage requirements. For purposes of this subsection, a final court order or administrative action is one as to which there is no pending appeal and the time for filing an appeal has passed.

4.54.100 Permit issuance.
(a) The Department shall issue a massage establishment permit if the applicant meets the requirements of this chapter and no grounds for denial exist under Section 4.54.110.

The Department may impose conditions on the permit consistent with this chapter and applicable law.
(b) Notice to Property Owner. If the applicant is not the record owner of the property where the massage establishment is located, the Department may send a written notice to the property owner advising of the issuance of the permit and of the regulations applicable to the massage establishment. The Department may also provide the property owner with copies of any other notices or communications with the applicant sent at any time before or after issuance of the permit.
(c) Term. A massage establishment permit issued pursuant to the terms of this chapter shall be valid for a term of one year from the date of issuance, and, unless suspended or revoked, must be renewed by the massage establishment operator annually so long as the massage establishment is operating within the city. (d) Insurance. Insurance coverage is a condition of receiving a permit and proof of such coverage is required. Unless specified otherwise by Department regulation, proof of liability insurance, or the equivalent, for not less than one hundred thousand dollars ($100,000) per massage therapist licensed, or to be licensed, at the massage establishment up to a maximum of one million dollars ($1,000,000) shall be required by the time of permit issuance. This requirement can be satisfied by insurance provided in the name of a massage therapist or the massage establishment. Coverage must be Item 8
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maintained for the entirety of the permit period. The Department may establish regulations governing insurance requirements that do not conflict with this section.

4.54.110 Permit denial.

The Department may deny an application for a massage establishment permit on any of the following grounds:
(a) The massage establishment, as proposed by the applicant, would not comply with the requirements of this chapter.
(b) The massage establishment, as proposed by the applicant, would not comply with any applicable law, including, but not limited to the city's building, fire, zoning, and health regulations or regulations under the CAMTC.
(c) The applicant has knowingly made any false, misleading or fraudulent statement of material fact in the application for a massage establishment permit. (d) Any owner of the massage establishment, within five years immediately preceding the date of filing of the application, has been convicted in a court of competent jurisdiction of any offense that relates directly to the operation of a massage establishment whether as a massage establishment owner or operator or as a person practicing massage for compensation, or as an employee of either; or has at any time been convicted in a court of competent jurisdiction of any felony the commission of which occurred on the premises of a massage establishment.
(e) Any owner of the massage establishment is currently required to register under the provisions of Section 290 of the California Penal Code. (f) Any owner of the massage establishment, within five years of the date of application, has been convicted in a court of competent jurisdiction of any violation of Sections 266, 266a, 266e, 266f, 266g, 266h, 266i, 266j, 315, 316, 318, 647(b) of the California Penal Code, or conspiracy or attempt to commit any such offense, or any offense in a jurisdiction outside of the State of California that is the equivalent of any of the aforesaid offenses.
(g) Any owner of the massage establishment has been subjected to a permanent injunction against the conducting or maintaining of a nuisance pursuant to Sections 11225 through Item 8
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11235 of the California Penal Code, or any similar provision of law in a jurisdiction outside the State of California.
(h) Any owner of the massage establishment, within five years of the date of application, and as established by clear and convincing evidence, has engaged in acts prohibited under California Penal Code Sections 266, 266a, 266e, 266f, 266g, 266h, 266i, 266j, 315, 316, 318, 647(b).
(i) Any owner of the massage establishment is an individual who has not attained the age of eighteen years.
(j) Any owner of the massage establishment, within five years immediately preceding the date of filing of the application, has had a certificate, permit or license to practice massage for compensation or to own and/or operate a massage establishment revoked or denied in any jurisdiction, including CAMTC.
(k) Any owner of the massage establishment currently owns or operates a massage establishment in the city of Palo Alto that is not in good standing due to the existence of uncorrected violations or unpaid fines or fees.
(l) Within the last five years, the applicant has failed to comply with a final court order or administrative action of an investigatory agency finding a violation of applicable federal, state and local wage and hour laws, including, but not limited to, the Federal Fair Labor Standards Act, the California Labor Code, and any local minimum wage ordinance or prevailing wage requirements. For purposes of this subsection, a final court order or administrative action is one as to which there is no pending appeal and the time for filing an appeal has passed.

4.54.120 Notice of denial—Appeal.
(a) If an application for a massage establishment permit is denied, the Department shall give written notice to the applicant specifying the grounds for denial. (b) The applicant may appeal the decision to deny a massage establishment permit by filing a written notice of appeal with the Department within fifteen days after deposit of the decision in the mail, specifying in detail the grounds for such appeal.

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(c) The City Clerk shall set a time and place for the hearing on the appeal not less than thirty days after the date the appeal was received by the Department, and shall give written notice by mail to the applicant of the date, time, and place for the hearing. The hearing may be conducted virtually or by phone at the discretion of the City. The hearing shall be conducted in accordance with Section 4.54.180. (d) After the hearing on the appeal, the City’s hearing officer may refer the matter back to the Department for a new investigation and decision, may affirm the decision of the Department, or may direct the Department to issue the license. The decision of the hearing officer or designee upon such appeal shall be final and shall be subject to judicial review according to the provisions and time limits set forth in Code of Civil Procedure Section 1094.6.

4.54.130 Amendments to permit required upon change of information. (a) Within 14 days of a change of the information provided in the application for a certified massage establishment on file with the City, the operator shall file an application to amend the permit to reflect such change. An application to amend a massage establishment permit shall be made by submitting an application on a form provided by the Department. The application shall be accompanied by the fee established by the city's fee schedule.
(b) The application shall not be approved unless the Department determines that the terms of the amended permit comply with all requirements of this chapter and all other local, state, and federal laws, and the massage establishment has no outstanding violations or unpaid citations or fees. Inspection of the massage establishment may be required prior to approval of the amendment.
(c) An amendment shall not be used to change the location or owners of a massage establishment. Instead, a new permit application is required. (d) A denial of an application to amend a massage establishment permit may be appealed in the same manner as a denial of an application for a permit under Section 4.54.120.

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4.54.140 Requirements for all massage establishment facilities and operations. (a) Operational Requirements. Except as otherwise specifically provided in this chapter, the following operational requirements shall be applicable to all massage establishments located within the city:
(1) No massage establishment shall be kept open for business between the hours of ten p.m. of one day and eight a.m. of the following day. A massage begun any time before ten p.m. must nevertheless terminate at ten p.m. This restriction does not apply to the use of hot tubs at a massage establishment that also has hot tubs in compliance with PAMC Chapter 4.56, but must follow any other applicable law or condition of permit as to hours of operation. (A) After ten years of co ntinuous operation, a massage establishment may be exempted from the hours restrictions of this section by the Department upon a written request which details the factual reasons supporting good cause for the exemption. The Department, in determining what constitutes good cause for this exemption from the hours restrictions, shall consider and weight the following factors: (i) ongoing compliance with this Chapter including updated review of permit requirements; (ii) the impact which the massage establishment has had on the health, safety, and welfare of the local community, including, but not limited to, parking and traffic congestion; and (iii) the massage establishment's compliance or noncompliance with all federal, state, and local laws, including, but not limited to, this municipal code. If, upon review of those factors, the Department determines that good cause does exist for the requested exemption, the Department may then exempt the massage establishment from the hours restrictions of this section. However, in no event shall any massage end later than midnight or begin earlier than six a.m. If the Department denies an application for an exemption under this subsection (A), the massage establishment may appeal under the process in PAMC section 4.54.120. The Department may revoke an exemption issued under this subsection (A) for the Item 8
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reasons stated in PAMC section 4.54.170 and such revocation is subject to hearing under PAMC section 4.54.180.
(2) The hours of operation of the massage establishment shall be displayed in a conspicuous public place in the reception and waiting area and in any front window clearly visible from outside of the massage establishment. (3) Patrons and visitors shall be permitted in the massage establishment only during the hours of operation.
(4) During the hours of operation, patrons shall be permitted in massage therapy rooms only if at least one duly authorized certified massage professional is present on the premises of the massage establishment. Patrons shall not be permitted in any employee break room on the premises.
(5) During the hours of operation, visitors shall not be permitted in massage therapy rooms except as follows:
(A) The parents or guardian of a patron who is a minor child may be present in the massage therapy room with that minor child;
(B) The minor child of a patron may be present in the massage therapy room with the patron when necessary for the supervision of the child; or (C) The conservator, aid, or other caretaker of a patron who is elderly or disabled may be present in the massage therapy room with that elderly or disabled person.
(6) During the hours of operation, except as otherwise provided herein, no visitors shall be permitted in massage therapy rooms, break rooms, dressing rooms, showers, or any other room or part of the massage establishment premises other than the reception and waiting area or toilet rooms. (7) Except for a patron who is inside a massage therapy room for the purpose of receiving a massage, no patrons or visitors shall be permitted in or on the massage establishment premises at any time who are less than fully clothed in outer garments of nontransparent material, or who display or expose themselves in underclothing or similar intimate apparel.

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(8) A list of massage services available and the cost of such services shall be posted in an open and conspicuous public place on the premises. The massage services shall be described in English and may also be described in such other languages as may be convenient. No massage establishment operator shall permit, and no person employed or retained by the massage establishment shall offer to perform any massage services or request or demand fees other than those posted.
(9) The massage establishment shall keep on the premises a complete and current roster of all owners, operators, and managing employees of the massage establishment and all massage professionals and other persons employed or retained by the massage establishment. The roster shall include the name, residence address, and phone number of each individual. The roster shall be available for inspection by city officials charged with the enforcement of this chapter.
(b) Physical Facility and Building and Fire Code Requirements. Except as otherwise specifically provided in this chapter, the following physical facility and building code requirements shall be applicable to all massage establishments located within the city:
(1) Main entry door and reception and waiting area required. One or more main entry door shall be provided for patron entry to the massage establishment, which shall open to an interior patron reception and waiting area immediately.

All patrons and any persons other than individuals employed or retained by the massage establishment shall be required to enter and exit through the main entry door(s). Unless the massage establishment is a sole proprietorship or a home occupation with one or no other employees, the main entry door shall be unlocked at all times during business hours.
(2) No massage establishment located in a building or structure with exterior windows fronting a public street, highway, walkway, or parking area shall block visibility into the interior reception and waiting area through the use of curtains, Item 8
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closed blinds, tints, or any other material that obstructs, blurs, or unreasonably darkens the view into the premises.
(3) All interior doors, including massage therapy rooms or cubicles (but excluding individual dressing rooms, showers, and toilet rooms, storage/equipment rooms, offices for staff only, and rooms for hot tubs at massage establishments that are also a hot tub/sauna establishment in compliance with PAMC Chapter 4.56) shall be incapable of being locked and shall not be blocked to prevent opening. Draw drapes, curtain enclosures, or accordion-pleated closures in lieu of doors are acceptable on all inner massage therapy rooms or cubicles. (4) Minimum lighting equivalent to at least one forty-watt light shall be provided in each massage therapy room or cubicle.
(5) A massage table or professional massage chair specifically designed for seated massage shall be used for all massage therapy, with the exception of "Thai," "Shiatsu," and similar forms of massage therapy, which may be provided on a padded mat on the floor, provided the patron is fully attired in loose clothing, pajamas, scrubs, or similar style of garment. Massage tables shall have a minimum height of eighteen inches.
(6) Beds, floor mattresses, and waterbeds are not permitted on the premises of the massage establishment, and no massage establishment shall be used for residential or sleeping purposes, which may be shown by circumstantial evidence such as the presence of bedding, pillows, sleeping bags, suitcases, clothing, toiletries or other personal belongings, cooking appliances, utensils or food in excess of a business establishment's normal requirements. A massage establishment that is also a hot tub/sauna establishment in compliance with PAMC Chapter 4.56 may have beds or floor mattresses only in rooms used for hot tubs and shall not be used for massage or residential purposes. (7) All locker facilities that are provided for the use of patrons shall be fully secured for the protection of the patrons' valuables, and each patron shall be given control of the key or other means of access.

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(8) The massage establishment shall comply with all applicable state and local building and fire codes as adopted in Title 16 of this code. (9) Any signage referring to the massage establishment located on or adjacent to the building housing the massage establishment must match the business name that is listed on the massage establishment permit. A massage establishment shall not have signage that refers to another business name. (c) Health and Safety Requirements. Except as otherwise specifically provided in this chapter, the following health and safety requirements shall be applicable to all massage establishments located within the city:
(1) The massage establishment shall at all times be equipped with an adequate supply of clean sanitary towels, coverings, and linens. Massage table or chair shall be covered with a fresh, clean sheet or other clean covering appropriate to the equipment for each patron, just before the client arrives. After a towel, covering, or linen has been used once, it shall be deposited in a closed receptacle and not used again until properly laundered and sanitized. Towels, coverings, and linens shall be laundered either by regular commercial laundering, or by a noncommercial laundering process that includes immersion in water at least one hundred forty degrees Fahrenheit for not less than fifteen minutes during the washing or rinsing operation. Clean towels, coverings, and linens shall be stored in closed, clean cabinets when not in use. A certified massage professional engaged in the practice of mobile massage shall carry a sufficient quantity of clean and sanitary towels, sheets, and linens to comply with the requirements. (2) All massage therapy rooms or cubicles, wet and dry heat rooms, toilet rooms, shower compartments, hot tubs, and pools shall be thoroughly cleaned and disinfected as needed, and at least once each business day when the premises has been or will be open and such facilities in use. All bathtubs shall be thoroughly cleaned and disinfected after each use.
(3) All liquids, creams, or other preparations used on or made available to patrons shall be kept in clean and closed containers. Powders may be kept in clean Item 8
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shakers. All bottles and containers shall be distinctly and correctly labeled to disclose their contents. When only a portion of a liquid, cream, or other preparation is to be used on or made available to a patron, it shall be removed from the container in such a way as not to contaminate the remaining portion. (4) No invasive procedures shall be performed on any patron. Invasive procedures include, but are not limited to:
(A) Application of electricity that contracts the muscle; (B) Penetration of the skin by metal needles;
(C) Abrasion of the skin below the nonliving, epidermal layers; (D) Removal of skin by means of any razor-edged instrument or other device or tool;
(E) Use of any needle-like instrument for the purpose of extracting skin blemishes; and
(F) Other similar procedures.
(5) All bathrobes, bathing suits, and/or other garments that are provided for the use of patrons shall be either fully disposable and not used by more than one patron, or shall be laundered after each use pursuant to subsection (c)(1) of this section. (6) All combs, brushes, and/or other personal items of grooming or hygiene that are provided for the use of patrons shall be either fully disposable and not used by more than one patron, or shall be fully disinfected after each use. (7) All massage establishments must provide patrons with slip-resistant sandals or flip-flops to wear while in the shower compartment. All footwear such as sandals or flip-flops that are provided for the use of patrons either shall be fully disposable and not used by more than one patron, or shall be fully disinfected after each use.
(8) Patrons' genitals and female patrons' breasts must be fully draped at all times while any individual employed or retained by the massage establishment is in the massage room or cubicle with the patron. No massage shall be provided to a Item 8
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patron that results in intentional contact, or occasional and repetitive contact, with the genitals or anal region of a patron.
(9) No alcoholic beverages shall be sold, served, or furnished to any patron; nor shall any alcoholic beverages be kept or possessed on the premises of a massage establishment. A massage establishment that is also a hot tub/sauna establishment in compliance with PAMC Ch. 4.56 is not subject to this limitation for non-massage areas of the establishment, but must adhere to all other applicable laws, including any applicable zoning code provisions and California Department of Alcohol Beverage Control requirements.
(d) Attire and Physical Hygiene Requirements. The following attire and physical hygiene requirements shall be applicable to all employees and any other persons who work permanently or temporarily on the premises of a massage establishment within the city, including, but not limited to, all persons who are employed or retained to practice massage for the massage establishment:
(1) No person shall dress in:
(A) Attire that is transparent, see-through, or substantially exposes the person's undergarments;
(B) Swim attire, unless providing a water-based massage modality approved by the CAMTC;
(C) A manner that exposes the person's chest, breasts, buttocks, or genitals; (2) No massage establishment operator, employee, or visitor shall, while on the premises of a massage establishment or while performing any mobile massage service, and while in the presence of any patron, customer, employee or visitor, expose his or her chest, breast, buttocks, or genitals. (3) All persons shall thoroughly wash their hands with soap and water or any equally effective cleansing agent immediately before providing massage to a patron. No massage shall be provided upon a surface of the skin or scalp of a patron where such skin is inflamed, broken (e.g., abraded or cut), or where a skin infection or eruption is present.

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(e) Display of Permit and Certifications.
(1) The massage establishment permit shall be displayed in an open and conspicuous place on the premises visible from the main entry door and/or reception and waiting area of the massage establishment. (2) Each person employed or retained by a massage establishment to perform massage in or on the premises or through a mobile massage service shall display on his or her person the valid current photograph-bearing identification card issued to that employee by the CAMTC. A copy of each such identification card and the person's original CAMTC certificate shall also be displayed in an open and conspicuous place visible from the main entry door and/or reception and waiting area of the massage establishment. The home address of any employee need not be displayed. If a massage establishment has more than 25 massage therapists and can demonstrate to the Department it is not reasonably practical to display a copy of each identification card and original CAMTC certificate as required above, then the massage establishment may request from the Department an alternative method of displaying copies of identification cards and CAMTC certificates. Such alternatives may only be approved in writing and shall comply with any applicable state law requirements. (f) Display of Human Trafficking Notices. The massage establishment shall comply with the requirements in California Civil Code Section 52.6 related to the posting of information for victims of human trafficking.
(g) Home Occupation and Mobile-Only Businesses—Exemptions. (1) Where a certified massage establishment is a home occupation, and the operator has complied with the provisions of Section 18.42.010 of this code pertaining to home occupations, the provisions of subsections (a)(2), (b)(1)—(3), and (b)(6) of this section shall not apply, and the portions of the residence subject to the requirements of subsections (b) and (c) of this section shall be only those portions that are used at any time by the patron of the massage establishment.

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(2) For massage establishments that provide mobile-only services and have no fixed location for performing massage, provisions of this section related to businesses with fixed locations shall not apply. Specifically, the provisions of subsections (a)(2)—(9), (b)(1)—(4), (b)(6)—(8), (c)(2) a nd (7), (e)(1), and (f) of this section shall not apply to mobile-only establishments.

4.54.150 Massage establishment inspections.
(a) As a condition of the massage establishment permit, investigating officials of the Department shall have the right to enter any massage establishment, other than an establishment providing mobile only services, during regular business hours, to make reasonable inspection to ascertain whether there is compliance with the provisions of this chapter. For home occupations, reasonable inspection shall be limited to the portions of the residence open to patrons.
(b) The massage establishment operator shall take immediate action to correct each violation noted by the inspector. A reinspection will be performed to ensure that each violation noted by the inspector has been corrected.

4.54.160 Reserved.

4.54.170 Revocation or suspension.

All massage establishment operators shall be deemed to know and understand the requirements and prohibitions of this chapter. Any massage establishment permit issued pursuant to this chapter may be suspended or revoked by the Department after a hearing, where the Department finds that any of the following have occurred on even a single occasion:
(a) The permittee or any person employed or retained by the massage establishment has violated any provision of this chapter.
(b) The permittee or any person employed or retained by the massage establishment has been convicted in a court of competent jurisdiction of having violated, or has engaged in conduct constituting a violation of, any of the following: California Penal Code Sections 266, 266a, 266e, 266f, 266g, 266h, 266i, 266j, 315, 316, 318, 647(b), or conspiracy or Item 8
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attempt to commit any such offense, or any offense in a jurisdiction outside of the State of California that is the equivalent of any of the aforesaid offenses. (c) The permittee or any person employed or retained by the massage establishment is required to register under Section 290 of the California Penal Code. (d) The permittee has been subject to a permanent injunction against the conducting or maintaining of a nuisance pursuant to this code, or Sections 11225 through 11235 of the California Penal Code, or any similar provision of law in any jurisdiction outside the State of California.
(e) The permittee or any person employed or retained by the massage establishment has engaged in fraud or misrepresentation or has knowingly made a misstatement of material fact while working in or for the massage establishment as it pertains to the massage establishment.
(f) The permittee has continued to operate the massage establishment after the massage establishment permit has been suspended.
(g) Massage has been performed on the premises of the massage establishment, with or without the permittee's actual knowledge, by any person who is not a duly authorized CAMTC-certified massage professional.
(h) A person who is not a duly authorized CAMTC-certified massage professional has provided mobile massage services through or on behalf of the massage establishment. (i) There have been one or more acts prohibited under California Penal Code Sections 266, 266a, 266e, 266f, 266g, 266h, 266i, 266j, 315, 316, 318, or 647(b), taking place on the premises of the massage establishment, whether or not any criminal prosecution has been pursued or conviction obtained for such acts, and whether or not they occurred with or without the actual knowledge of the permittee.
(j) The permittee or any person employed or retained by the massage establishment or any other person on the premises of the massage establishment has engaged in conduct or committed acts that a reasonable person in the patron's position would understand as an offer to perform on or engage in with the patron acts that are sexual in nature or that involve touching of the patron's genitals, or anal region.

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(k) The permittee or any person employed or retained by the massage establishment has engaged in sexually suggestive advertising related to massage services available at the massage establishment, including, but not limited to displaying photographs of individuals clothed in swim attire, or attire that is transparent, see-through or substantially exposes the individual's undergarments, breasts, buttocks, or genitals, describing massage services as "erotic," "sensual" or similarly sexual in nature, listing advertisements in any media (including online) intended for adults only, or describing the appearance or age of massage providers.
(l) If the applicant has failed to comply with a final court order or administrative action of an investigatory agency finding a violation of applicable federal, state and local wage and hour laws, including, but not limited to, the Federal Fair Labor Standards Act, the California Labor Code, and any local minimum wage ordinance or prevailing wage requirements. For purposes of this subsection, a final court order or administrative action is one as to which there is no pending appeal and the time for filing an appeal has passed. In addition, any disciplinary action taken by CAMTC shall be considered in determining grounds for revocation, suspension or nonrenewal.

4.54.180 Hearing for revocation or suspension.
(a) The Department shall give written notice of a hearing for the revocation or suspension of any permit granted pursuant to this chapter to the permittee. The notice shall set forth the time and place of the hearing, the ground or grounds upon which the hearing is based, the pertinent code sections, and a brief statement of the factual issues in support thereof. The notice shall be mailed, postage prepaid, addressed to the permittee at the last known address of the permittee, or it shall be delivered to the permittee personally, at least ten days prior to the hearing date. (b) Within ten days of the hearing the Department shall render its decision in writing, stating its findings and the action taken, if any. The decision letter shall be mailed, postage prepaid, addressed to the permittee at the last known address of the permittee, or it shall be delivered to the permittee personally.

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(c) Within ten days from the deposit of the decision letter in the mail or its receipt by the permittee, whichever occurs first, the permittee may appeal the decision in writing to the city manager or designee, setting forth with particularity the ground or grounds for the appeal.
(d) The hearing officer shall give written notice of the hearing on the appeal not less than ten days from the date the appeal was received by the city. The hearing shall be conducted in accordance with Section 4.54.190.
(e) After the hearing on the appeal, the hearing officer or designee may refer the matter back to the Department for a new investigation and decision, may affirm the decision of the Department, may dismiss the disciplinary action, or may revoke or suspend the permit. The decision of the hearing officer upon such appeal shall be final and shall be subject to judicial review according to the provisions and time limits set forth in Code of Civil Procedure Section 1094.6.
(f) The notices provided to the massage establishment pursuant to this section may also be sent to the owner of the premises where the massage establishment is located.

However, failure to provide notice to the property owner shall not invalidate any actions taken by the city.

4.54.190 Hearing rules.

The following rules shall apply to any hearing requi red by this chapter. All parties involved shall have the right to offer testimonial, documentary, and tangible evidence bearing on the issues, to be represented by counsel, and to confront and cross-examine witnesses. Any relevant evidence may be admitted if it is the sort of evidence upon which reasonable persons are accustomed to rely in the conduct of serious affairs. Any hearing under this chapter may be continued for a reasonable time for the convenience of a party or witness.

4.54.200 Violations a public nuisance—Penalties, nuisance abatement, and other remedies.

Any massage establishment operated, conducted, or maintained contrary to the provisions of this chapter shall be, and the same is hereby declared to be, unlawful and a public nuisance, and Item 8
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the city attorney may, in addition to or in lieu of prosecuting a criminal action hereunder, commence an action or actions, proceeding or proceedings, for the abatement, removal and enjoinment thereof, in the manner provided by la w. Such remedies shall be in addition to any other judicial and administrative penalties and re medies available to the city under this code or under state law.
(a) For the purpose of enforcing the requirements of this chapter, all owners and operators of the massage establishment shall be jointly and severally responsible for the conduct of all massage establishment employees, agents, independent contractors, or other representatives while such persons are on the premises of the massage establishment or providing mobile massage services on behalf of the massage establishment. (b) In addition to any other remedy available to the city under applicable law, a massage establishment permit may be suspended or revoked as provided in Sections 4.54.170 and 4.54.180. Upon issuance of a final order by the Department or Hearing Officer to revoke the massage permit, the massage establishment shall immediately cease operation, and, if so ordered by the hearing officer, no other massage establishment shall be permitted to operate at that location by any person for a period of not less than five years ("the moratorium period"). If the operator is not also the legal owner of the real property on which the massage establishment is situated, notice of such revocation and the five-year prohibition shall be provided by the permit authority to the owner of record of the property as shown on the latest county assessment roll.
(c) In addition to any other remedy available to the city under applicable law, a massage establishment permit may not be renewed or amended unless and until all due and unpaid citations issued pursuant to this chapter are paid in full, and all outstanding violations have been corrected.
(d) Notwithstanding any other provision of this chapter, where a Notice of Revocation or Suspension has been issued to the operator of a massage establishment pursuant to Section 4.54.180 of this chapter, the Department shall not process or grant an application for a massage establishment permit for a new massage establishment at the Item 8
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same premises unless and until such Notice of Revocation or Suspension is dismissed; or a final determination is made pursuant to that section that the current operator's massage establishment permit is not or should not be revoked; or any moratorium period imposed pursuant to this chapter has expired.

4.54.200 Administrative Citations and Penalties
(a) Violations. Upon a finding by the City that a business has violat ed any provision of this chapter, the City may issue an administrative citation and/or compliance order resulting in administrative fines pursuant to PAMC Chapters 1.12 and 1.16. (b) Separate Violations . Each violation of any provision of this chapter shall constitute a separate violation. Each client to whom massage is provided or offered in violation of this chapter shall also constitute a separate violation. Each day upon which a massage business remains open for business in violatio n of this chapter shall also constitute a separate violation.
(c) Outstanding Fines . All outstanding penalties resulting from administrative citations and/or compliance orders must be paid pr ior to the issuance or renewal of any registration.
(d) Appeals. Appeals of administrative citation s and compliance orders may be made pursuant to the appeal procedures in PAMC Chapters 1.12 and 1.16, respectively.

SECTION 3. Chapter 4.56 (Hot Tub/Sa una Establishments) of the Palo Alto Municipal Code is hereby amended and restated in its entirety to read as follows:

4.56.010 Purpose and intent.

It is the purpose and intent of this chapter to provide for the orderly regulation of hot tub/sauna establishments and hot tub/sauna establishment employees, as defined in this chapter in the interests of the public health, safety and welfare by providing certain minimum building, sanitation and health standards for hot tub/sauna establishments and by providing certain minimum standards and regulations regarding the conduct and activities of the owners and employees of hot tub/sauna establishments.Reserved.

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4.56.020 Definitions.

For the purpose of this chapter, unless the context clearly requires a different meaning, the words, terms, and phrases set forth in this section shall have the meanings given them in this section:
(a) "Hot tub/sauna establishment" means any establishment having a fixed place of business where any person, as defined in this section, for compensation, engages in, conducts, carries on or permits to be engaged in, conducted or carried on any of the following as the principal functions; provided, that any establishment wherein any employee provides any services defined as massage or adult entertainment by Sections 4.54.020 or 4.55.020 shall be licensed pursuant to the provisions of Chapters 4.54 or 4.55, respectively. (1) Where Russian, Turkish, Finnish, Swedish, hot air, vapor, electric cabinet, steam, mineral, sweat, salt, Japanese, sauna, fomentation, alcohol or baths of any kind whatsoever are furnished or made available; and/or
(2) Where the public has access, on a rental basis, to private rooms or suites located within the establishment, in which are located or provided hot tubs, jacuzzis, saunas, showers, similar and/or related facilities, or any combination thereof.

The term "hot tub/sauna establishment" does not include licensed hospitals, nursing homes, sanitaria, or individuals holding a valid certificate to practice the healing arts under the laws of the state of California, or individuals working under the direction of any such certificated persons. The term "hot tub/sauna establishment" does not include any type of a privately owned and operated health spa, gymnasium or exercise facility where the primary purpose of the establishment is the offering of exercise or physical fitness equipment and facilities to prospective patrons; even though such establishment may have, on its premises, facilities for hot baths, and/or hot tubs, jacuzzis, saunas and related facilities for the incidental use of patrons.
(b) "Hot tub/sauna establishment employee" means every owner, partner, manager, supervisor, employee or any other person, whether paid or not, who renders personal services of any type in the operation of a hot tub/sauna establishment.

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(c) "License" means the license to operate a hot/tub sauna establishment as required by this chapter.
(d) "Permit" means the permit to engage in the activities of a hot tub/sauna establishment employee as required by this chapter.
(e) "Person" means any individual, partnership, firm, association. joint venture, corporation. or combination of individuals.

Whenever, in this chapter, the singular form of any of the terms defined in this section is used, the same includes the plural form of such term.

4.56.030 Hot tub/sauna establishment County license required.

It is unlawful for any person to engage in, conduct or carry on, in or upon any premises within the city the operation of a hot tub//sauna establishment without the any applicable valid license(s) or permit(s) required by and obtained from the chief of police as required by this chapter. A. hot tub/sauna establishment license the County of Santa Clara. shall be issued to any person who has complied with the requirements of Sections 4.56.050 and 4.56.110, and all applicable provisions of the code; unless grounds for denial of such license are found to exist. In addition to those set forth in Section 4.04.140, grounds for denial shall include:
(a) The applicant made a material misstatement in the application for a license; (b) The applicant has, within five years immediately preceding the date of the filing of the application, been convicted in a court of competent jurisdiction of an offense involving conduct which requires registration under California Penal Code Section 290, or any violations of Sections 311 through 311.7, 313.1, 314, 315, 316, 318, or 647(a), 647(b), 647(d), or 647(h) of the California Penal Code, or of any offense involving theft of property or violence; (c) That the operation of a hot tub/sauna establishment, as proposed by the applicant, if permitted, would not comply with all applicable laws including, but not limited to, all city ordinances and regulations;
(d) That the operation of the proposed hot tub/sauna establishment is likely to be injurious to the health, safety and welfare of the people of the city; Item 8
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(e) That the applicant is lacking in the background and qualifications to conduct a bona fide hot tub/sauna establishment; or
(f) That the applicant has violated any provision of this chapter, or of any similar ordinance, law, rule or regulation of another public agency which regulates the operation of hot tub/sauna or related establishments.

4.56.040 Hot tub/sauna establishment license application fee.

Any application for a license to operate a hot tub/sauna establishment shall be accompanied by a nonrefundable fee as set forth in the municipal fee schedule. The application fee shall be used to defray, in part, the costs of investigation and report, and is not made in lieu of any other fees or taxes required under this code. A license to operate a hot tub/sauna establishment shall be renewed annually. The renewal fee shall be as set forth in the municipal fee schedule.

Reserved.

4.56.050 Application for hot tub/sauna establishment license.

Any application for a license to operate a hot tub/sauna establishment shall be made with the chief of police. Within thirty working days following receipt of a completed application, the chief of police shall either issue the permit or mail a written statement of his reasons for denial thereof. The application shall set forth the exact nature of the hot tub/sauna operations or activities to be conducted, the proposed place of business and facilities therefor, and the name and address of each applicant. In addition to the requirements of Chapter 4.04 and this section, any applicant shall furnish the following information:
(a) The previous address of applicant, if any, for a period of three years immediately prior to the date of the application and the dates of residence at each; (b) Written proof that the applicant is at least eighteen years of age; (c) Applicant's height, weight, color of eyes and hair; Item 8
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(d) The applicant shall allow the police department official processing the application to take photographs and fingerprints of the applicant;
(e) Business, occupation or employment history of the applicant for the three years immediately preceding the date of the application;
(f) If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation, together with the names and residence addresses of each of its officers, directors, and each stockholder holding more than five percent of the stock of the corporation. If the applicant is a partnership, the application shall set forth the name and residence address of each of the partners, including limited partners. If one or more of the partners is a corporation, the provisions of this section pertaining to a corporate applicant shall apply;
(g) The names and residence addresses of all persons currently employed or intended to be employed in the hot tub/sauna establishment, regardless of the nature of the employment, other than any person licensed pursuant to Section 4.56.060, along with the proposed or actual nature of the work performed or to be performed, and recent passport-size photographs, suitable to the police department official processing the application, of each such employee. All such employees shall be requested to obtain the permit specified in Section 4.56.060. Any applicant or licensee shall notify the city in writing of the names, addresses, and nature of the work, of any new or proposed employees, and supply the photographs described in this subsection upon determining to employ such person. No such person shall commence such employment until a permit has been obtained as specified in Section 4.56.060. "Employee" means "hot tub/sauna establishment employee" as defined herein. It shall be unlawful for any licensee to employ any hot tub/sauna establishment employee who does not possess a valid permit provided for in Section 4.56.020. Any licensee shall notify the chief of police in writing of the termination of employment of any employee, whether terminated by the licensee or employee, within five days of such termination;
(h) Such other information as may be deemed necessary by the chief of police.

Reserved.

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4.56.060 Hot tub/sauna establishment employee permit required.

It is unlawful for any person to act as a hot tub/sauna establishment employee unless such person holds a valid permit issued by the chief of police. A hot tub/sauna establishment employee permit shall be issued to any person who has fulfilled the requirements of Section

4.56.080, and all other applicable provisions of this code; unless grounds for denial of such permit are found to exist. In addition to those set forth in Section 4.04.140, grounds for denial shall include:
(a) The applicant made a material misstatement in the application for the permit; (b) The applicant, within five years immediately preceding the date of the filing of the application, has been convicted in a court of competent jurisdiction of any offense involving conduct which requires registration under California Penal Code Section 290, or any violation of Sections 311 through 311.7, 313.1, 314, 315, 316, 318 or 647(a), 647(b), 647(d), or 647(h) of the California Penal Code or of any offense involving theft of property; (c) The issuance of the permit is likely to be injurious to the health, safety, welfare, and interest of the people of the city;
(d) The applicant has previously violated any provision of this chapter, or of any similar ordinance, law, rule or regulation of another public agency which regulates the operation of hot tub/sauna establishments or hot tub/sauna establishment employees; (e) The applicant is under eighteen years of age.

Reserved.

4.56.070 Hot tub/sauna establishment employee application fee.

Any application for a permit to act as hot tub/sauna establishment employee shall be accompanied by a nonrefundable fee as set forth in the municipal fee schedule. A hot tub/sauna establishment employee permit shall be renewed annually. The renewal fee shall be as set forth in the municipal fee schedule. Any person who applies for a license to operate a hot tub/sauna establishment and who desires to act as a hot tub/sauna establishment employee within said establishment shall not be required to pay the fee required by the municipal fee schedule, but shall be required to furnish the information set forth in Section 4.56.080.

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Reserved.

4.56.080 Application for hot tub/sauna establishment employee permit.

Any application for a permit to act as a hot tub/sauna establishment employee shall be made with the chief of police. Within thirty working days following receipt of a completed application, the chief of police shall either issue the permit, or mail a written statement of his reason for denial thereof. The chief of police may require the applicant to allow fingerprints to be taken. In addition to the requirements of Chapter 4.04, the applicant shall furnish the following information:
(a) Name, residence address and telephone number;
(b) Social security number and driver's license number if any; (c) Applicant's weight, height, color of hair and eyes; (d) The applicant shall furnish a recent photograph of applicant to the police department official who processes the application;
(e) Written evidence that the applicant is at least eighteen years of age; (f) Business, occupation or employment of the applicant for the three years immediately preceding the date of application;
(g) The name and address of the establishment where the applicant is to be employed, and the name of the owner or operator of the same. Any hot tub/sauna establishment employee granted a permit pursuant to this section must report any change in hot tub/sauna establishment employment within five days of said change; (h) Whether such person has ever been convicted of any crime mentioned in Section

4.56.060. If any person has been so convicted, a statement must be made giving the place and court in which said conviction was had, the specific charge or charges under which the conviction was obtained, and the sentence imposed as a result of such conviction; (i) Such other information as may be deemed necessary by the chief of police.

Reserved.

4.56.090 Appeal.

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In the event a permit or license application has been denied, the applicant shall proceed pursuant to the appeal and hearing provision of Chapter 4.04.

Reserved.

4.56.100 Hot tub/sauna establishment and operations requirements.

All hot tub/sauna establishments shall comply with the following facilities and operations requirements and each of the requirements listed in this section shall be conditions of any hot tub/sauna establishment license which is issued pursuant to the requirements of this chapter:
(a) Hot tub/sauna establishments shall comply with all applicable provisions of this code and with all applicable health and sanitation laws, rules and regulations of the county of Santa Clara and state of California.
(b) Toilet and lavatory facilities shall be provided for employees and patrons of a hot tub/sauna establishment in a number and type not less than the minimum number and type specified in the applicable code section for such type of use. (c) A manager or other supervisory representative of the licensee shall be and remain on the premises of the licensed hot tub/sauna establishment at all times during the operating hours of the establishment. The licensee shall furnish the chief of police with a list of all persons authorized by licensee to act as manager or representative of the licensee. Any change in said list shall be reported to the chief of police immediately. (d) All suites and rooms within hot tub/sauna establishments, for the use of patrons, shall be provided with clean laundered sheets, towels and linens in sufficient quantities which shall be laundered between consecutive uses thereof and stored in an approved sanitary manner. The same sheets, towels and linens shall not be used in excess of one rental period. No sheets, towels or linens shall be laundered or dried in any hot tub/sauna establishment unless such establishment is provided with approved laundry facilities comparable to commercial laundering facilities, for such laundering and drying. Approved receptacles shall be provided for the storage of soiled sheets, linens, and towels. Heavy white paper may be substituted for sheets; provided that such paper is used once for each person and then discarded into a sanitary receptacle.

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(e) All walls, ceilings, floors, pools, showers, bathtubs, hot tubs, jacuzzis, saunas, steam rooms, and all other physical facilities within the establishment must be in good repair and maintained in a clean and sanitary condition. Wet and dry heat rooms, steam or vapor rooms, or steam or vapor cabinets, shower compartments, bathrooms, toilet rooms, saunas, jacuzzis, hot tubs, and individual suites shall be thoroughly cleaned and disinfected each day the business is in operation. Bathtubs (not including hot tubs) shall be cleaned and thoroughly disinfected after each use. Not more than one hot tub or similar water-holding device shall be operated from the same heating or filtering device or any similar mechanism unless each such hot tub or other similar device is capable of being emptied and refilled independent of any other hot tub.
(f) The walls in all rooms where water or steam baths are given shall have a washable, mold- resistant surface.
(g) All lavatories or wash basins shall be provided with hot and cold running water, soap and single-service towels in wall-mounted dispensers.
(h) Cabinets or other covered space shall be provided for the storage of clean linen. (i) To protect patrons from potential health and sanitary hazards, all hot tub/sauna establishment employees shall be clean and shall perform all services on the premises in full, clean outer garments.
(j) Security deposit facilities capable of being locked by the patron or a waterproof security bag that may be carried by the patron shall be available for the protection of the valuables of the patron.
(k) Each service or facility offered, the price thereof, and the minimum length of time such service shall be performed shall be posted in a conspicuous public location within the hot tub/sauna establishment. If the hot tub/sauna establishment contains within it one or more individual rooms or suites, the hourly rental rate for such individual rooms or suites shall also be posted in a conspicuous public location, along with the minimum and maximum periods of time such individual rooms or suites can be rented. All letters and numbers shall be capitals, and not less than one-half inch in height.

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(l) No mirrors of any type shall be placed at any location within or inside the hot tub/sauna establishment unless the approval of the chief of police has first been obtained; provided, however, that if the hot tub/sauna establishment is comprised of one or more individual rooms or suites, a small mirror, not more than three square feet in size, may be placed on the interior of such room or suite on the door leading from such individual room or suite into any interior hallway within such establishment, or such other comparable location not visible from the exterior of such individual room or suite when the door thereto is open as may be approved by the chief of police.
(m) If the hot tub/sauna establishment is comprised of one or more individual rooms or suites which are rented to patrons, the interior of any such individual room or suite shall not be visible from any point outside the room or suite when the door leading from such individual room or suite into any interior hallway is closed.
(n) No alcoholic beverages of any type shall be permitted to be brought into or consumed within or upon the premises or property of any hot tub/sauna establishment. (o) No nudity shall be permitted or allowed to occur in any interior hallways of the establishment, or in any other open patron area or areas located within the hot tub/sauna establishment. Nudity shall only be permitted or allowed within the confines of an individual room or suite located within the establishment and then only by the patrons who have rented such room or suite.
(p) No individual under the age of eighteen years shall be allowed to enter into or to remain upon or within the premises of any hot tub/sauna establishment unless such individual is accompanied by his or her parent or guardian.
(q) All hot tub/sauna establishment employees, while on duty:
(1) Shall remain fully clothed at all times;
(2) Shall not remain inside any of the individual rooms or suites with any patrons of the establishment while the doors leading to the hallways from such rooms or suites are closed.

Said doors shall remain closed at all times during which the individual room or suite is occupied and utilized by any patron;
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(3) Shall not perform, for compensation or otherwise, any type of personal services for the patrons of the establishment, which personal services consist of the touching of any part of the body of a patron with any part of the employee's body, or any implement utilized by an employee.
(r) (1) Hot tub/sauna establishments shall close and remain closed from eleven p.m. to nine a.m.
(2) After one year of operation, a hot tub/sauna establishment may be exempted from the hours restrictions of this section by the chief of police upon a written request which details the factual reasons supporting good cause for the exemption. The chief of police, in determining what constitutes good cause for this exemption from the hours restrictions, shall consider and weight the following factors:
(A) The criteria outlined in Section 4.04.140 of Chapter 4.04; (B) The criteria outlined in Section 4.56.030 of this chapter; (C) The impact which the hot tub/sauna establishment has had on the health, safety, and welfare of the local community, including, but not limited to, parking and traffic congestion; (D) The hot tub/sauna establishment's compliance or noncompliance with all federal, state, and local laws, including, but not limited to, this municipal code.

If, upon review of these factors, the chief of police determines that good cause does exist for the requested exemption, the chief may then exempt the particular hot tub/sauna establishment from the hours restrictions of this section. However, in no event shall any hot tub/sauna establishment close later than two a.m. nor open earlier than six a.m. (3) The exemption from the hours restrictions of this section shall be subject to review and renewal annually at the same time as the renewal of the underlying license and the same factual showing shall be made as that required for the initial exemption. The chief shall not grant an hours exemption unless said establishment has maintained the criteria specified in Section 4.56.100(r)(2).
(s) No hot tub/sauna establishment shall be allowed in the following locations:
(1) Within two hundred fifty feet of the exterior property limits of any public or private elementary school, junior high school or high school;
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(2) Within two hundred fifty feet of the exterior limits of any district where residential use is the principal permitted use, including all R and RM districts, O-S districts, and any P-C or P-F districts where the principal use permitted or maintained is residential; or (3) Within twelve hundred feet of the exterior property limits of any other premises lawfully occupied by a hot tub/sauna establishment or by any establishment subject to the provisions of Chapters 4.54 or 4.55, or any cardroom licensed pursuant to Chapter 4.52. Notwithstanding the provisions of this subdivision, subject to all other provisions of this chapter, a hot tub/sauna establishment license may be issued for an establishment located within twelve hundred feet of another hot tub/sauna establishment, an establishment subject to the provisions of Chapters

4.54 or 4.55, or any cardroom licensed pursuant to Chapter 4.52 if the applicant has obtained, and has in effect, a valid conditional use permit pursuant to Chapter 18.76 (Permits and Approvals). Application for a license under this chapter shall be made and processed prior to an application for a use permit. In the event it is determined that a license under this chapter would be issued for the provisions of this subdivision, the application for a use permit shall then be processed. A license under this chapter shall not be issued until completion of the use permit application process. In the case of such an application, the time limit for action on a hot tub/sauna establishment license application contained in Section 4.56.050 shall be automatically extended as necessary to follow processing of the use permit application. For the purpose of determining compliance with standard (3), as to, between and with respect to establishments lawfully in operation on the effective date of this section, priority between such existing establishments shall be assigned in accordance with the dates upon which said establishments commenced such lawful operations. In the event any dispute arises regarding said dates, the applicant shall have the obligation to establish the date on which he commenced lawful operation.

Any hot tub/sauna establishment lawfully in operation on the effective date of this section shall, within sixty days of said date apply to the chief of police for a determination as to compliance with the provisions of this section. Said application shall be in such form as prescribed by the chief of police.

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Any hot tub/sauna establishment legally existing on the effective date of this subsection and which is not in compliance with the provisions of this subsection shall comply with said provisions within three years of the effective date of this subsection; provided, however, that any such establishment which intends to in any way transfer ownership or alter or change the nature of any such hot tub/sauna establishment on or after the effective date of this subsection shall comply with the provisions of this subsection prior to such transfer, alteration or change.

Any such use which at the expiration of said period is not in compliance with the provisions of this subsection shall at that time discontinue and abate its operation.

Any hot tub/sauna establishment lawfully in operation upon the effective date of this subsection failing to comply with the provisions of this subsection shall be issued a limited-term license containing a statement on its face reciting such noncompliance and the date by which compliance must be accomplished, and that said license shall not be renewed beyond said date.

All distances referred to in this subsection shall be measured between the closest points on the exterior property lines or area boundaries of the parcels or areas involved, except that when a hot tub/sauna establishment subject to the provisions of this section occupies one unit of a multi-unit structure located on a single parcel, distances shall be measured from the exterior boundaries of the unit so occupied.

Reserved.

4.56.110 Inspection by officials.

Any and all investigating officials of the city shall have the right to enter hot tub/sauna establishments from time to time during regular business hours to make reasonable inspections to observe and enforce compliance with building, fire, electrical, plumbing or other health safety regulations. A warrant shall be obtained whenever required by law.

4.56.120 Business name.

No person licensed to operate a hot tub/sauna establishment shall operate under any name or conduct business under any designation not specified in the a County license(s).

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4.56.130 Business location change.

Upon a change of location of a hot tub/sauna establishment, an application to the chief of police shall be made in the same form as an original application, and such application shall be granted, provided all applicable provisions of this code are complied with as in the case of an original application, and a change of location fee as set forth in the municipal fee schedule to defray, in part, the costs of investigation and report has been paid to the city.

Reserved.

4.56.140 Sale or transfer of hot tub/sauna establishment interest.

A sale or transfer of any interest in a hot tub/sauna establishment, which interest would be reported as required in this chapter upon application for a hot tub/sauna establishment license, shall be reported to the chief of police within ten days of such sale or transfer. The chief of police shall investigate any person receiving any interest in a hot tub/sauna establishment as a result of such sale or transfer, and if such person satisfies the requirements relating to hot tub/sauna establishment license applicants, the existing license shall be endorsed to include such person. A fee as set forth in the municipal fee schedule shall be paid to the city for the investigation by the chief of police necessitated by each such sale or transfer.

Reserved.

4.56.150 Display of permits, licenses.

The owner or operator of a hot tub/sauna establishment shall display the hot tub/sauna establishment license and the permit of each and every hot tub/sauna establishment employee employed in the establishment in an open and conspicuous place on the premises. Passport- size photographs of the licensee and permittees shall be affixed to the respective license and permits on display pursuant to this section. Home addresses of hot tub/sauna establishment employees need not be displayed.

Reserved.

4.56.160 Grounds for denial, probation, and disciplinary action.

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In addition to any provisions contained in this chapter, the provisions of Section 4.04.140 shall apply to licenses and permits required under this chapter. Any circumstances constituting grounds for denial shall also constitute grounds for revocation, suspension or disciplinary action.

Reserved.

4.56.170 Hearing.

Any licensee or permittee whose license or permit has been suspended or revoked shall proceed pursuant to the appeal and hearing provisions of Chapter 4.04.

Reserved.

4.56.180 Application to existing establishments and employees.

All operators of existing hot tub/sauna establishments, and all hot tub/sauna establishment employees in the city upon the effective date of this chapter shall comply with all application and other requirements within thirty days following the effective date of this chapter.

Reserved.

4.56.190 Application of other code provisions.

Chapter 4.04 shall apply to the subject matter of this chapter in all respects, including those not specifically mentioned in this chapter.

Reserved.

4.56.200 Employment of persons under the age of eighteen years prohibited.

No licensee shall employ, hire or retain the services of any individual who is under the age of eighteen years old. No licensee shall knowingly employ, hire or retain the services of, or continue to employ or retain, any individual who has been convicted of any of the offenses set forth in subsection (b) of Section 4.56.060, or who has failed to obtain the permit required by Section 4.56.060.

Reserved.

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SECTION 4. If any section, subsection, cl ause 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 5. The Council finds that this proj ect is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment.

SECTION 6. This ordinance shall be effective 31 days after adoption.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

A T T E S T :

____________________________ ________ ____________________ C i t y C l e r k M a y o r

APPROVED AS TO FORM: APPROVED:

____________________________ ________ ____________________ Assistant City Attorney City Manager

________ ____________________
C h i e f o f P o l i c e

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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. 10265 is hereby amended and restated to read as follows (edited sections underlined):

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
Item 8
Attachment B - Resolution
Amending and Restating the
Administrative Penalty
Schedule to Amend
Penalties for PAMC
Chapters 4.54 and 4.56.

Item 8: Staff Report
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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

4.54.060 CAMTC cert. required - massage tech. 250

4.54.080(a) Permit required - massage establishment. 1000

4.54.080(b)-(d) Prohibited conduct – massage establishment 250

4.54.130 Failure to amend massage estab. permit 100

4.54.140 Massage establishment facilities. 250

4.55.030 License required - adult entertainment. 1000

4.56.030 License required - hot tub and sauna. 1000

4.56.120 Business name - 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

5.20.080 Number of containers required. 250

5.20.090 Collection of recyclable materials. 250 for Commercial Premises 50 for Residential Premises
Item 8
Attachment B - Resolution
Amending and Restating the
Administrative Penalty
Schedule to Amend
Penalties for PAMC
Chapters 4.54 and 4.56.

Item 8: Staff Report
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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

6.32.050 Dead animals in public. 500

6.36.010 Sales of certain animals. 250

Item 8
Attachment B - Resolution
Amending and Restating the
Administrative Penalty
Schedule to Amend
Penalties for PAMC
Chapters 4.54 and 4.56.

Item 8: Staff Report
Pg.
51 Packet Pg. 322 of 469

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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

9.06 (All sections) Vanlording prohibited 500

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; 3rd and subsequent violations
in 1 year: $500)
Item 8
Attachment B - Resolution
Amending and Restating the
Administrative Penalty
Schedule to Amend
Penalties for PAMC
Chapters 4.54 and 4.56.

Item 8: Staff Report
Pg.
52 Packet Pg. 323 of 469

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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 in 1 year: $500)

12.20.020 Providing false information to City Utilities. 500 Item 8
Attachment B - Resolution
Amending and Restating the
Administrative Penalty
Schedule to Amend
Penalties for PAMC
Chapters 4.54 and 4.56.

Item 8: Staff Report
Pg.
53 Packet Pg. 324 of 469

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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

16.09.200 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

16.49.070 Demolition of a contributing downtown structure 10000 or significant structure outside the downtown
Item 8
Attachment B - Resolution
Amending and Restating the
Administrative Penalty
Schedule to Amend
Penalties for PAMC
Chapters 4.54 and 4.56.

Item 8: Staff Report
Pg.
54 Packet Pg. 325 of 469

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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,
the City will allow for a grace
period for any daily violations that
Item 8
Attachment B - Resolution
Amending and Restating the
Administrative Penalty
Schedule to Amend
Penalties for PAMC
Chapters 4.54 and 4.56.

Item 8: Staff Report
Pg.
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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

22.04.290(b) Marking, writing or printing on property. 1000

22.04.290(c) Attaching sign, etc., without permit. 500 Item 8
Attachment B - Resolution
Amending and Restating the
Administrative Penalty
Schedule to Amend
Penalties for PAMC
Chapters 4.54 and 4.56.

Item 8: Staff Report
Pg.
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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. 10265 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 parking zones.

10.44.020 Oversized vehicle parking 46
Item 8
Attachment B - Resolution
Amending and Restating the
Administrative Penalty
Schedule to Amend
Penalties for PAMC
Chapters 4.54 and 4.56.

Item 8: Staff Report
Pg.
57 Packet Pg. 328 of 469

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10.44.040(b)Not in space marking. 46

10.44.050 Parking violation. 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. 10265 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.
22511.57(c) Parking/standing of vehicle in disabled parking $753 stall or space with counterfeit, forged, altered or
mutilated license/placard for disabled.
22514 Parking within 15 feet of fire hydrant. 46
Item 8
Attachment B - Resolution
Amending and Restating the
Administrative Penalty
Schedule to Amend
Penalties for PAMC
Chapters 4.54 and 4.56.

Item 8: Staff Report
Pg.
58 Packet Pg. 329 of 469

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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. The changes made in this Resolution shall be effective upon adoption.

INTRODUCED AND PASSED:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

ATTEST:

________________________________ ________________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

_______________________________ ________________________________ City Attorney or Designee City Manager

________________________________
Chief of Police

Item 8
Attachment B - Resolution
Amending and Restating the
Administrative Penalty
Schedule to Amend
Penalties for PAMC
Chapters 4.54 and 4.56.

Item 8: Staff Report
Pg.
59 Packet Pg. 330 of 469

City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: January 12, 2026
Report #:2512-5745
TITLE
SECOND READING: Ordinance of the Council of the City of Palo Alto Renewing the Military Equipment Use Policy in Compliance with Govt. Code Section 7070 et seq. (2025-2026) (FIRST READING: December 8, 2025; PASSED 7-0)

BACKGROUND
The City Council heard this item on December 8, 2025 for a first reading and approved it on a 7- 0 vote. No changes were made to the ordinance, and it is now before the City Council for a second reading.

ATTACHMENTS
Attachment A: Ordinance of the Council of the City of Palo Alto Renewing the Military Equipment Use Policy in Compliance with Govt. Code Section 7070 et seq. (2025-2026) APPROVED BY:

Mahealani Ah Yun, City Clerk
Item 9
Item 9 Staff Report

Item 9: Staff Report
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1 Ordinance No. _____

Ordinance of the Council of the City of Palo Alto Renewing the Military Equipment Use Policy in Compliance with Govt. Code Section 7070 et seq. (2025-2026)

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

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

1. In 2021, the California Legislature and the Governor approved AB 481, which requires the City Council to approve a “Military Equipment Use Policy” in order to acquire, use, or seek funds for the use of certain equipment used by law enforcement. AB 481 is codified at Gov. Code section 7070 et seq.

2. The City Council adopted Ordinance 5562 in September 2022 to approve the City’s first Military Equipment Use Policy. The Ordinance was last renewed on November 4, 2024 as Ordinance 5636.

3. As required by Govt. Code section 7072, the Palo Alto Police Department submitted an annual military equipment report for each type of military equipment approved by the City Council. This report was posted publicly on the Department’s website in November 2025.

The Department also held a community engagement meeting on November 20, 2025.

4. As required by Govt. Code section 707 1, the City Council now intends to renew and restate Ordinance 5635 to implement the Military Equipment Use Policy for another year.

SECTION 2. The City Council makes the following required findings in compliance with Gov. Code section 7071(d)(1) and (e) as to the attached Military Equipment Use Policy:
(A) The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety. (B) The proposed military equipment use policy will safeguard the public’s welfare, safety, civil rights, and civil liberties.
(C) The equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety. (D) Prior military equipment use complied with the military equipment use policy that was in effect at the time.

SECTION 3. The City Council hereby approves the attached Military Equipment Use Policy incorporated as Exhibit A to this ordinance.

SECTION 4. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.

The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the O rdinance would be subsequently declared invalid or unconstitutional.

Item 9
Attachment A - Ordinance
of the Council of the City of
Palo Alto Renewing the
Military Equipment Use
Policy in Compliance with
Govt. Code Section 7070 et
seq. (2025-2026)

Item 9: Staff Report
Pg.
2 Packet Pg. 332 of 469

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2 SECTION 5. The Council finds that adoption of this Ordinance is not a “project” within the meaning of CEQA.

SECTION 6. This Ordinance shall be effective on the thirty -first date after the date of its adoption. This Ordinance shall supersede Ordinance 5635, and any conflict shall be resolved in favor of this Ordinance.

SECTION 7. This Ordinance shall be uncodified.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

NOT PARTICIPATING:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ Assistant City Attorney City Manager

____________________________
Chief of Police

Item 9
Attachment A - Ordinance
of the Council of the City of
Palo Alto Renewing the
Military Equipment Use
Policy in Compliance with
Govt. Code Section 7070 et
seq. (2025-2026)

Item 9: Staff Report
Pg.
3 Packet Pg. 333 of 469

*NOT YET APPROVED*
3 Exhibit A
Palo Alto Police Department Military Equipment Use Policy (Updated November 2025)

I. PURPOSE

This policy is provided to fulfill the obligations set forth in Assembly Bill No. 481 as codified at Govt. Code section 7070 et seq., and establishes guidelines for the acquisition, funding, use and reporting of “military equipment”, as the term is defined in Government Code section 7070.

These obligations include but are not limited to seeking approval on specific items deemed, by statute, to be military equipment and requirements related to compliance, annual reporting, cataloging, and complaints regarding these items.

II. PROCEDURE

A. DEFINITIONS

1. Governing Body – The City Council of the City of Palo Alto.

2. Military Equipment – Shall have the same meaning as defined by California Government Code § 7070(c).

B. GOVERNING BODY APPROVAL

1. The Department shall obtain approval of the governing body prior to engaging in any of the following activities:
a. Requesting military equipment made available pursuant to Section 2576a of Title 10 of the United States Code.
b. Seeking funds for military equipment including, but not limited to, applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
c. Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
d. Collaborating with another law enforcement agency in the deployment or other use of military equipment within the territorial jurisdiction of the governing body. e. Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body pursuant to general order f. Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of, military equipment.
g. Acquiring military equipment through any means not provided in a. through f.

2. In seeking the approval of the governing body, the Department shall comply with Gov. Code § 7071, which requires that the Department submit a proposed military equipment use policy, or subsequent amendments, to the City Council and the public via the law enforcement agency’s internet website at least 30 days prior to any public hearing concerning the military equipment at issue.

Item 9
Attachment A - Ordinance
of the Council of the City of
Palo Alto Renewing the
Military Equipment Use
Policy in Compliance with
Govt. Code Section 7070 et
seq. (2025-2026)

Item 9: Staff Report
Pg.
4 Packet Pg. 334 of 469

*NOT YET APPROVED*
4 3. The governing body must be able to make the following findings in approving the Military Equipment Use Policy as required by Gov. Code § 7071(d)(1) in order to use military equipment:

a. The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety. b. The proposed military equipment use policy will safeguard the public’s welfare, safety, civil rights, and civil liberties.
c. If purchasing the equipment, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety. d. Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance.

C. MILITARY EQUIPMENT ANNUAL REPORT

The Department shall submit an annual military equipment report to the governing body that addresses each type of military equipment possessed by the Department in compliance with Gov. Code § 7072.

1. The Department shall also make each annual military equipment report publicly available on its internet website for as long as the military equipment is available for use.

2. The annual military equipment report shall, at a minimum, include the following information for the immediately preceding calendar year for each type of military equipment:
a. A summary of how the military equipment was used and the purpose of its use. b. A summary of any complaints or concerns received concerning the military equipment.
c. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. d. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report. e. The quantity possessed for each type of military equipment. f. If the Department intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment.

The Department will document each use of military equipment and, via administrative review, ensure compliance with this policy. Any instances of non-compliance will be reported to the City Council via the annual military equipment report, and to the Independent Police Auditor where appropriate.

Item 9
Attachment A - Ordinance
of the Council of the City of
Palo Alto Renewing the
Military Equipment Use
Policy in Compliance with
Govt. Code Section 7070 et
seq. (2025-2026)

Item 9: Staff Report
Pg.
5 Packet Pg. 335 of 469

*NOT YET APPROVED*
5 D. MILITARY EQUIPMENT USE POLICY COMPLAINTS AND CONCERNS

Pursuant to Gov. Code § 7070(d)(7), members of the public may register complaints or concerns or submit questions by any of the following means:

1. Via email to: [email protected]

2. Via phone call to: (650) 329-2406

3. Via mail sent to: Palo Alto Police Department
Attn: Personnel and Training
275 Forest Avenue
Palo Alto, CA 94301
The Department is committed to responding to complaints, concerns and/or questions received through any of the above methods in a timely manner.

E. MILITARY EQUIPMENT TRAINING

Military equipment shall only be used after applicable training, including any course required by the Commission on Peace Officer Standards and Training (P.O.S.T.), has been completed, unless exigent circumstances arise.

F. MILITARY USE EQUIPMENT POLICY CONTENTS

All military use equipment kept and maintained by the Department shall be cataloged in a way which addresses each of the following requirements in compliance with Gov. Code § 7070(d):

1. A description of each type of military equipment, the quantity sought, its capabilities, expected lifespan, and product descriptions from the manufacturer of the military equipment.

2. The purposes and authorized uses for which the law enforcement agency or the state agency proposes to use each type of military equipment.

3. The fiscal impact of each type of military equipment, including the initial costs of obtaining the equipment and estimated annual costs of maintaining the equipment.

4. The legal and procedural rules that govern each authorized use.

5. The training, including any course required by the Commission on Peace Officer Standards and Training, that must be completed before any officer, agent, or employee of the law enforcement agency or the state agency is allowed to use each specific type of military equipment to ensure the full protection of the public’s welfare, safety, civil rights, and civil liberties and full adherence to the military equipment use policy.

6. The mechanisms to ensure compliance with the military equipment use policy, including which independent persons or entities have oversight authority, and, if applicable, what legally enforceable sanctions are put in place for violations of the policy.

Item 9
Attachment A - Ordinance
of the Council of the City of
Palo Alto Renewing the
Military Equipment Use
Policy in Compliance with
Govt. Code Section 7070 et
seq. (2025-2026)

Item 9: Staff Report
Pg.
6 Packet Pg. 336 of 469

*NOT YET APPROVED*
6 G. USE POLICY FOR SPECIFIC EQUIPMENT

Qualifying Equipment Owned/Utilized by the Department

Equipment Type: 37mm Less Lethal Launchers and Kinetic Energy Munitions - CA Gov’t Code §7070(c)(14)
Quantity Owned/Sought: 30 owned Lifespan: Approximately 15 years Equipment Capabilities: The 37MM Less Lethal Launcher is capable of firing 37MM Kinetic Energy and Chemical Agent Munitions. Palo Alto PD only possesses “KO1” impact baton rounds in its inventory.

Manufacturer Product Description: Sage Control Ordinance 37MM launchers are rugged, reliable, and simple to operate less lethal launchers. These launchers are light weight, versatile and used worldwide by police officers. The 37MM launcher family of products is available in single-shot (“Ace”), double-shot (“Deuce”), or magazine fed configurations. Palo Alto PD possesses the “Ace” and “Deuce” models.

Purpose/Authorized Uses: The 37MM Less Lethal Launchers and Kinetic Energy Munitions are intended for use as a less lethal use of force option. Kinetic energy projectiles, when used properly, are less likely to result in death or serious physical injury and can be used in an attempt to de-escalate a potentially deadly situation.

Circumstances appropriate for deployment include, but are not limited to, situations in which:

(a) The suspect is armed with a weapon and the tactical circumstances allow for the safe application of approved munitions.
(b) The suspect has made credible threats to harm him/herself or others. (c) The suspect is engaged in riotous behavior or is throwing rocks, bottles or other dangerous projectiles at people and/or officers.
(d) There is probable cause to believe that the suspect has already committed a crime of violence and is refusing to comply with lawful orders.

Fiscal Impacts: The initial cost of this equipment was approximately $27,000. The ongoing costs for munitions will vary and maintenance is conducted by departmental staff.

Legal/Procedural Rules Governing Use: Use governed by applicable State, Federal and Local law, and PAPD policy, including but not limited to PAPD policy §§ 300 (Use of Force) and 308 (Control Devices and Techniques). Use will continue to be subject to an administrative Use of Force review.

Training Required: Officers must complete a department certified 37mm course as well as regular training and qualifications as required by law and policy.

Other Notes: None.

Equipment Type: Long Range Acoustic Device (LRAD) - CA Gov’t Code §7070(c)(13) Quantity Owned/Sought: 1 Lifespan: Unknown.

Equipment Capabilities: LRAD systems are a type of Acoustic Hailing Device (AHD) used to send messages over long distances. LRAD systems produce much higher sound levels (volume) than normal loudspeakers or megaphones, and can be more narrowly directed.

Manufacturer Product Description: LRAD systems are a type of Acoustic Hailing Device (AHD) used to send messages over long distances. LRAD systems produce much higher sound levels Item 9
Attachment A - Ordinance
of the Council of the City of
Palo Alto Renewing the
Military Equipment Use
Policy in Compliance with
Govt. Code Section 7070 et
seq. (2025-2026)

Item 9: Staff Report
Pg.
7 Packet Pg. 337 of 469

*NOT YET APPROVED*
7 (volume) than normal loudspeakers or megaphones. Over shorter distances, LRAD signals are loud enough to cause pain in the ears of people in their path.

Purpose/Authorized Uses: Primarily used to communicate, from a safe distance, with armed and/or barricaded subjects, for the purpose of negotiation. Can also be used in furtherance of search and rescue operations, and to communicate lawful dispersal orders.

Fiscal Impacts: The initial cost of this equipment was approximately $10,000. The ongoing cost for maintenance will vary.

Legal/Procedural Rules Governing Use: Use governed by applicable State, Federal and Local law, and PAPD policy, including but not limited to PAPD policy § 414 (Hostage and Barricade Incidents). Use will be subject to an administrative review.

Training Required: The Palo Alto Police Department provides internal training for staff members prior to allowing them to use this equipment.

Other Notes: This equipment is maintained and operated by members of the Department’s Crisis Negotiation Team (CNT).

Equipment Type: Diversionary Devices and Chemical Agents (tear gas) and pepper balls - CA Gov’t Code §7070(c)(12)
Quantity Owned/Sought: 108 Lifespan: 5 years
Equipment Capabilities: Capable of creating auditory/visual distractions, and/or deploying tear gas or pepper chemical to distract potentially dangerous individuals.

Manufacturer Product Description:

The Palo Alto Police Department uses Diversionary Devices and Chemical Agents produced by Defense Technology (DT) and Combined Tactical Systems (CTS). All Chemical Agents utilized by PAPD contain CS (Orthochlorobenzalmalononitrile) or OC (Oleoresin Capsicum).

Diversionary Devices:

1. Mini-Bang (CTS-7290M)
a. The Model 7290M Flash-Bang exhibits all of the same attributes of its larger counterpart but in a smaller and lighter package. Weighing in at just 15 ounces the new 7290M is approximately 30% lighter than the 7290 but still has the same 180db output of the 7290 and produces 6-8 million candela of light.

2. 9-Bang (CTS-7290-9)
a. The Model 7290- Aluminum Body Flash Bang's patented multi-bangs feature top and bottom non-fragmenting, minimal movement devices that perform with high reliability incorporating CTS Superior fuze components with the patented and US Army adopted Confidence Clip and pin shroud.

Chemical Agents:

1. CS 37mm Liquid Ferret Barricade Round (CTS-3330)
a. 3330 – Liquid CS filled projectile penetrates intermediate barriers and delivers irritant agents into an adjacent room.

2. CS 37mm Liquid Ferret Barricade Round (DT-1162)
Item 9
Attachment A - Ordinance
of the Council of the City of
Palo Alto Renewing the
Military Equipment Use
Policy in Compliance with
Govt. Code Section 7070 et
seq. (2025-2026)

Item 9: Staff Report
Pg.
8 Packet Pg. 338 of 469

*NOT YET APPROVED*
8 a. The Ferret® 37 mm CS Round is a frangible projectile filled with chemical agent. Upon impacting the barrier, the nose cone ruptures and instantaneously delivers the .16 oz. agent payload inside a structure.

3. CTS 5230b Baffled CS
a. The design of the Baffled CS allows the contents to burn within an internal can and external baffling, and disperse the agent safely with reduced risk of fire.

The grenade is designed primarily for indoor tactical situations to detect and/or dislodge a barricaded subject. This grenade can be hand thrown or launched from a fired delivery system.

4. CTS 5230 Riot CS
a. The CTS Riot CS is specifically designed for outdoor use. It discharges a high volume of smoke and chemical agent through multiple emission ports. This grenade can be hand thrown or launched from a fired delivery system.

Smoke:

1. CTS 5210 White Smoke
a. The CTS 5210 White Smoke Grenade is designed specifically to conceal tactical movement or to route a crowd. The volume of non-irritant smoke and agent is vast and obtrusive.

PepperBall:

Less lethal launchers are designed for minimum time between launches and quick reload speed, so whether in a crowd control scenario, tactical or even Mobile Field Force situation, the PepperBall system offers flexibility, safety and security, all within one platform. Each launcher is air powered, with either carbon dioxide (CO2), nitrogen, or compressed air powering the launch of projectiles.

Purpose/Authorized Uses: creating explosive distractions, and/or deploying chemical agents.

Fiscal Impacts: The initial cost of the Pepperball equipment was approximately $7,920. The ongoing costs for munitions will vary and maintenance is conducted by departmental staff.

The initial cost of the distraction devices and chemical agents was approximately $2,400. The ongoing costs for munitions will vary and (minimal, if any) maintenance is conducted by departmental staff.

Legal/Procedural Rules Governing Use Use governed by applicable State, Federal and Local law, and PAPD policy, including but not limited to PAPD policy §§ 300 (Use of Force), 308 (Control Devices and Techniques), and 408 (Crisis Response Unit).Use of tear gas or pepper balls will continue to be subject to an administrative Use of Force review. Use of distraction devices will be subject to an administrative review to ensure policy compliance.

Training Required: A P.O.S.T. certified Control Devices and Techniques Department chemical agent and distraction device instructor provides internal training for all members of the SWAT team prior to allowing them to use flashbang grenades or tear gas. The Department provides internal training for all members prior to allowing them to use pepper balls.

Other Notes: Distraction devices and chemical agents are exclusively maintained and operated by members of the Department’s Special Weapons and Tactics Team (SWAT).

Equipment Type: Bolt Action Rifle and Ammunition - CA Gov’t Code §7070(c)(10) Quantity Owned/Sought: 1 owned Lifespan: Approximately 15 years Item 9
Attachment A - Ordinance
of the Council of the City of
Palo Alto Renewing the
Military Equipment Use
Policy in Compliance with
Govt. Code Section 7070 et
seq. (2025-2026)

Item 9: Staff Report
Pg.
9 Packet Pg. 339 of 469

*NOT YET APPROVED*
9 Equipment Capabilities: Accuracy International rifle is capable of firing a 7.62mm/.308 cal projectile bullet.

Manufacturer Product Description: Accuracy International (AI) Accuracy Tactical bolt action rifle .308 Winchester/7.62mm NATO.

1. 20" barrel threaded 5/8x24

2. Nightforce:C622 Scope .250 MOA

3. AI Adjustable cheek piece

4. AI Two-stage trigger

5. AI 10-round .380 caliber magazine

6. AI Three-position safety

Purpose/Authorized Uses: This rifle is authorized for use by a specially-trained, SWAT marksman only and may be deployed in any circumstance where the officer can articulate a reasonable expectation that the rifle may be needed. Examples of some general guidelines for deploying the rifle may include but are not limited to:

1. Situations where the officer reasonably anticipates an armed encounter.

2. When the officer is faced with a situation that may require accurate and effective fire at long range.

3. Situations where an officer reasonably expects the need to meet or exceed a suspect's firepower.

4. When an officer reasonably believes that there may be a need to fire on a barricaded person or a person with a hostage.

5. When an officer reasonably believes that a suspect may be wearing body armor.

6. When authorized or requested by a supervisor.

Fiscal Impacts: This equipment was purchased by the Palo Alto Police Department at an initial cost of $6500.00. The ongoing costs for ammunition will vary and maintenance is conducted by departmental staff.

Legal/Procedural Rules Governing Use: Use governed by applicable State, Federal and Local law, and PAPD policy, including but not limited to PAPD policy §§ 300 (Use of Force), 312 (Firearms), and 408 (Crisis Response Unit).Each use will continue to be subject to an administrative Use of Force review.

Training Required: In addition to CA P.O.S.T. certified patrol rifle and CA P.O.S.T. certified standard SWAT Operator training, SWAT marksmen must successfully complete a CA P.O.S.T. certified course as well as regular SWAT marksmanship training and qualifications as required by law and policy.

Other Notes: None.

Qualifying Equipment Owned/Utilized by Palo Alto OES

Equipment Type: Command and control vehicle – CA Gov’t Code §7070(c)(5) Quantity Owned/Sought: 1 Lifespan: Approximately 20 years Item 9
Attachment A - Ordinance
of the Council of the City of
Palo Alto Renewing the
Military Equipment Use
Policy in Compliance with
Govt. Code Section 7070 et
seq. (2025-2026)

Item 9: Staff Report
Pg.
10 Packet Pg. 340 of 469

*NOT YET APPROVED*
10 Equipment Capabilities: The City of Palo Alto Office of Emergency Services (OES) has a Mobile Emergency Operations Center (MEOC) vehicle.

Manufacturer Product Description: The MEOC is built on a 40’ Freightliner chassis, 2010 Model Year.

Purpose/Authorized Uses: The MEOC serves as a resource for public safety and coordinates with other such vehicles operated by other agencies. It is deployed to “all hazards” ranging from natural disasters, wildfires, crime, special events, and planned and unplanned disruptions to 9-1-1 and Emergency Operations Center systems and facilities.

Fiscal Impacts: The MEOC was acquired in approximately 2010 with grant funding of $300,000 and City funding of $375,000. The ongoing costs for maintenance and operation will vary and most maintenance is conducted by City staff.

Legal/Procedural Rules Governing Use: It is the policy of OES to use the MEOC in accordance with California State law regarding the operation of motor vehicles. Furthermore, since the MEOC is grant-funded and since the MEOC is a rare resource, the City may support mutual aid with the MEOC (for example wildfire response). Use will be subject to an administrative review to ensure policy compliance.

Training Required: The MEOC is a highly complex system. City staff are provided with requisite training and licensing, depending on their role in supporting the MEOC.

Other Notes: The MEOC is not a “military vehicle” but could support coordination with the National Guard, FEMA, and other cooperating agencies after a major earthquake or other disaster.

Qualifying Equipment known to be owned and/or utilized by law enforcement units with which the Palo Alto Police Department collaborates and/or participates for law enforcement purposes

Equipment Type: Unmanned Aircraft Systems (UAS/Drones) – CA Gov’t Code §7070(c)(1) Quantity Owned/Sought: None (outside owned) Lifespan: Various Equipment Capabilities: Remotely piloted aerial vehicles capable of providing live and recorded video images captured from aerial positions, including images enhanced by Forward Looking Infrared (FLIR) and optical zoom lenses.

Manufacturer Product Description: Various. Dependent upon the availability of mutual aid equipment and personnel at the time of need.

Purpose/Authorized Uses: UAS/Drones may be utilized to enhance the Department’s mission of protecting lives and property when other means and resources are not available or are less effective. Uses may include but are not limited to: search and rescue; suspect apprehension; crime scene documentation; tactical operations; scene security; hazard monitoring, identification and mitigation; response to emergency calls; crisis communications; legally authorized surveillance.

Fiscal Impacts: None. Equipment owned, maintained, and operated by another agency.

Legal/Procedural Rules Governing Use: Use governed by applicable State, Federal and Local law, Federal Aviation Administration (FAA) regulations, and PAPD policy, including but not limited to PAPD policy §§ 322 (Search and Seizure) and 352 (Outside Agency Assistance).Federal Aviation Administration (FAA) regulations . Absent a warrant or exigent circumstances, operators and observers shall adhere to FAA altitude regulations and shall not intentionally record or transmit images of any location where a person would have a Item 9
Attachment A - Ordinance
of the Council of the City of
Palo Alto Renewing the
Military Equipment Use
Policy in Compliance with
Govt. Code Section 7070 et
seq. (2025-2026)

Item 9: Staff Report
Pg.
11 Packet Pg. 341 of 469

*NOT YET APPROVED*
11 reasonable expectation of privacy (e.g., residence, yard, enclosure). Operators and observers shall take reasonable precautions to avoid inadvertently recording or transmitting images of areas where there is a reasonable expectation of privacy. Upon mutual aid or other request from PAPD, UAS/Drone will be operated by the deploying agency’s staff pursuant to their own policies and review.

Training Required: Prior to piloting any UAS/Drone staff members must secure an FAA Remote Pilot License and complete all training required by our FAA COA.

Other Notes: None.

Equipment Type: Unmanned, remotely piloted, powered ground vehicles - CA Gov’t Code §7070(c)(1)
Quantity Owned/Sought: None (outside owned) Lifespan: Various Equipment Capabilities: Robots are capable of being remotely navigated to provide scene information and intelligence in the form of video and still images transmitted to first responders.

Manufacturer Product Description: Various. Dependent upon the availability of mutual aid equipment and personnel at the time of need.

Purpose/Authorized Uses: To enhance the safety of potentially dangerous situations by providing first responders with the ability to capture video and still images of hazardous areas prior to, or in lieu of, sending in personnel.

Fiscal Impacts: None. Equipment owned, maintained, and operated by another agency.

Legal/Procedural Rules Governing Use: Absent a warrant or exigent circumstances, operators and observers shall adhere to all applicable privacy laws and shall not intentionally record or transmit images of any location where a person would have a reasonable expectation of privacy (e.g., residence, yard, enclosure). Use governed by applicable State, Federal and Local law, Federal Aviation Administration (FAA) regulations, and PAPD policy, including but not limited to PAPD policy §§ 322 (Search and Seizure) and 352 (Outside Agency Assistance). Upon mutual aid or other request from PAPD, vehicle will be operated by deploying agency’s staff pursuant to their own policies and review.

Training Required: Subject to the policies of the deploying agency.

Other Notes: While the Palo Alto Police Department does not own or operate this equipment, it could be deployed to an incident within city limits.

Equipment Type: Wheeled vehicles that have a breaching apparatus attached - CA Gov’t Code §7070(c)(3)
Quantity Owned/Sought: None (outside owned) Lifespan: Various Equipment Capabilities: Capable of breaching doors, gates, and other points of entry; facilitating the safe transport of officers or civilians facing an armed suspect.

Manufacturer Product Description: Various. Dependent upon the availability of mutual aid equipment and personnel at the time of need.

Purpose/Authorized Uses: Breaching doors, gates, and other points of entry. Safely transporting police personnel or evacuating civilians, when facing with an armed suspect.

Fiscal Impacts: None. Equipment owned, maintained, and operated by another agency.

Legal/Procedural Rules Governing Use: Use governed by applicable State, Federal and Local law, and PAPD policy, including but not limited to PAPD policy §§ 322 (Search and Seizure) and 352 (Outside Agency Assistance). Upon mutual aid or other request from PAPD, vehicle will be operated by deploying agency’s staff pursuant to their own policies and review.

Item 9
Attachment A - Ordinance
of the Council of the City of
Palo Alto Renewing the
Military Equipment Use
Policy in Compliance with
Govt. Code Section 7070 et
seq. (2025-2026)

Item 9: Staff Report
Pg.
12 Packet Pg. 342 of 469

*NOT YET APPROVED*
12 Training Required: Subject to the policies of the deploying agency.

Other Notes: While the Palo Alto Police Department does not own or operate this equipment, it could be deployed to an incident within city limits.

Item 9
Attachment A - Ordinance
of the Council of the City of
Palo Alto Renewing the
Military Equipment Use
Policy in Compliance with
Govt. Code Section 7070 et
seq. (2025-2026)

Item 9: Staff Report
Pg.
13 Packet Pg. 343 of 469

City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: January 12, 2026
Report #:2512-5746
TITLE
SECOND READING: Ordinance of the Council of the City of Palo Alto Prohibiting Parking of Detached Trailers and Other Non-Motorized Vehicles on Public Streets (FIRST READING:

December 8, 2025; PASSED 6-1, Lythcott-Haims no)

BACKGROUND
The City Council heard this item for a first reading on December 8, 2025 and approved it on a 6- 1, Lythcott-Haims no vote. No changes were made to the ordinance, and it is now before the City Council for a second reading.

ATTACHMENTS
Attachment A: Ordinance of the Council of the City of Palo Alto Prohibiting Parking of Detached Trailers and Other Non-Motorized Vehicles on Public Streets APPROVED BY:

Mahealani Ah Yun, City Clerk
Item 10
Item 10 Staff Report

Item 10: Staff Report
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1 Packet Pg. 344 of 469

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1 0290189_20251119_ms29

Ordinance No. ____
Ordinance of the Council of the City of Palo Alto Prohibiting Parking of Detached Trailers and Other Non-Motorized Vehicles on Public Streets

The Council of the City of Palo Alto does ORDAIN as follows:

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

A. Section 22507 of the California Vehicle Code authorizes the City to regulate the parking of vehicles on City streets.

B. The City has experienced a proliferation of detached trailers and other non-motorized vehicles parked on public streets and an associated increase in reports of public health, safety and aesthetic concerns.

C. Street parking is a limited resource within the City. Storage of detached trailers and other non-motorized vehicles on public streets consumes limited parking supply and impedes the use of the public streets for temporary parking.

D. Detached non-motorized vehicles that cannot be moved on a regular basis impede street sweeping and other clean-up operations and restrict views of motorists, cyclists and pedestrians.

E. Inhabited non-motorized vehicles can lead to unauthorized gray and black water disposal with the potential for illegal discharges of septic waste, wastewater, fuels, or trash from such vehicles into City streets, gutters, or storm drains due to their inability to move to access authorized disposal sites. This is particularly hazardous to the public health because Palo Alto’s storm drain system flows directly into the San Francisco Bay. The City has an obligation under federal, state, and regional regulations to keep pollutants out of the storm drain system.

F. Detached trailers and other non-motorized vehicles cannot be easily or quickly moved in an emergency and may therefore cause safety hazards.

SECTION 2. Section 10.44.020 of the Palo Alto Municipal Code is amended to read as follows (additions underlined, deletions struck through):

10.44.020 Standing or parking, two a.m. to six a.m.
(a) No person shall, between the hours of two a.m. and six a.m. of any day, unless authorized by a hardship permit issued pursuant to Section 10.44.021 or a construction or maintenance permit issued pursuant to Section 10.40.045, park upon streets or alleys located within a residential zone or public facility zone any of the following vehicles:
(1) Oversized vehicles;
(2) Trailers;
(3) Camper shells;
(4) Tow trucks as defined by California Vehicle Code Section 615; (5) Special construction equipment as defined by California Vehicle Code Section 565.

Item 10
Attachment A - Ordinance
of the Council of the City of
Palo Alto Prohibiting Parking
of Detached Trailers and
Other Non-Motorized
Vehicles on Public Streets

Item 10: Staff Report
Pg.
2 Packet Pg. 345 of 469

*NOT YET APPROVED*

2 0290189_20251119_ms29

(b) Notwithstanding the provisions of this section, no signs or markings are necessary to give effect to the restrictions and prohibitions contained in this section. No person shall park or leave standing a non-motorized vehicle upon any public street or highway. (1) For the purposes of this subsection, “non-motorized vehicle” means any trailer, camp trailer, semitrailer or trailer coach as defined by the California Vehicle Code. “Non-motorized vehicle” does not include any bicycle, scooter, or micromobility device.
(2) This subsection shall not apply to a nonmotorized vehicle that is attached to a vehicle capable of moving the nonmotorized vehicle in a lawful manner upon the street, carries a hardship permit issued pursuant to Section 10.44.021 or a construction or maintenance permit issued pursuant to Section 10.40.045, is actively being loaded or unloaded, or is undergoing emergency repairs. (c) Where not inconsistent with the U.S. Constitution or other applicable law, vehicles parked in violation of this section are subject to tow.

SECTION 3. Severability. If any provision, clause, sentence or paragraph of this ordinance, or the application to any person or circumstances, shall be held invalid, such invalidity shall not affect the other provisions of this Ordinance which can be given effect without the invalid provision or application and, to this end, the provisions of this Ordinance are hereby declared to be severable.

SECTION 4. Effective Date. This ordinance shall be effective on the thirty-first day after the date of its adoption.

//
Item 10
Attachment A - Ordinance
of the Council of the City of
Palo Alto Prohibiting Parking
of Detached Trailers and
Other Non-Motorized
Vehicles on Public Streets

Item 10: Staff Report
Pg.
3 Packet Pg. 346 of 469

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SECTION 5. CEQA. The City Council finds and determines that this Ordinance is not a project within the meaning of section 15378 of the California Environmental Quality Act (“CEQA”) because it has no potential for resulting in physical change in the environment, either directly or ultimately. Alternatively, it is exempt from CEQA under CEQA Guidelines section 15308 as a regulatory action for the protection of the environment.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ Assistant City Attorney City Manager

____________________________
Chief Transportation Official

____________________________
Chief of Police

Item 10
Attachment A - Ordinance
of the Council of the City of
Palo Alto Prohibiting Parking
of Detached Trailers and
Other Non-Motorized
Vehicles on Public Streets

Item 10: Staff Report
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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: January 12, 2026
Report #:2512-5747
TITLE
SECOND READING: Ordinance of the Council of the City of Palo Alto Prohibiting Rental of Vehicles for Human Habitation (FIRST READING: December 8, 2025; PASSED 6-1, Lythcott-Haims no)

BACKGROUND
The City Council heard this item for a first reading on December 8, 2025 and approved it on a 6- 0, Lythcott-Haims no vote. No changes were made to the ordinance, and it is now before the City Council for a second reading.

ATTACHMENTS
Attachment A: Ordinance of the Council of the City of Palo Alto Prohibiting Rental of Vehicles for Human Habitation
APPROVED BY:

Mahealani Ah Yun, City Clerk
Item 11
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Ordinance No. ____
Ordinance of the Council of the City of Palo Alto ProhibiƟng Rental of Vehicles for Human HabitaƟon

The Council of the City of Palo Alto does ORDAIN as follows:

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

A. The pracƟce of renƟng out recreaƟonal vehicles or other oversized vehicles for use as living or sleeping quarters, known as “vanlording,” is a growing concern in many ciƟes, including the City of Palo Alto.

B. RecreaƟonal vehicles used for vanlording are parked on public streets, occupying valuable and limited street parking spaces.

C. Allowing vanlords to rent out vehicles in the public right of way facilitates private proﬁt- taking from the use of a public resource.

D. The pracƟce of vanlording is unlicensed and unregulated and therefore oŌen associated with unregistered, poorly maintained, and inadequately insured vehicles.

E. Vanlords oﬀer renters a place to stay without responsibly addressing health and safety issues that can arise when inhabited vehicles are parked on public streets. These issues include improper waste disposal, unsanitary condiƟons, illegal parking, tapping into or blocking ﬁre hydrants or other uƟlity infrastructure, and the creaƟon of ﬁres.

F. The renƟng out of vehicles for human habitaƟon is not currently regulated. Unlike tradiƟonal landlords and property management enƟƟes, vanlords are not explicitly subject to laws that require the upkeep and maintenance of rental housing. Accordingly, those who rent from them are not protected by laws that secure tenants’ rights or even basic habitability standards.

G. With this ordinance, the City Council intends to prohibit vanlording within the City of Palo Alto.

SECTION 2. Chapter 9.06 Rental of Vehicles for Human HabitaƟon is hereby added to Title 9 of the Palo Alto Municipal Code, to read as follows:

9.06.010 Rental of recreaƟonal vehicles for living or sleeping quarters – ProhibiƟon.

No person shall rent, lease, let out, or otherwise loan any oversized vehicle which is subsequently uƟlized for living or use as sleeping quarters on any street, alley, or city-owned or city-controlled premises in exchange for money, goods, or services.

For the purposes of this Chapter, “oversized vehicle” means any vehicle exceeding seven feet in height or exceeding twenty feet in overall length or exceeding seven feet in width (including any Item 11
Attachment A - Ordinance
of the Council of the City of
Palo Alto Prohibiting Rental
of Vehicles for Human
Habitation

Item 11: Staff Report
Pg.
2 Packet Pg. 349 of 469

*NOT YET APPROVED*

2 0290191_20251119_ms29

load or accessory thereon other than antennas), provided that this deﬁniƟon shall not apply to vehicles which exceed these dimensions solely because of modiﬁcaƟons required to accommodate a disability and the vehicle is lawfully displaying a disabled placard or license.

It shall not be necessary to prove that the person who rented, leased, let out, or otherwise loaned any vehicle which was subsequently uƟlized for living or sleeping quarters intended or knew that the vehicle would be used for living or use as sleeping quarters on any street, alley, or city-owned premises.

9.06.020 Rental of recreaƟonal vehicles for living or sleeping quarters – AdverƟsements prohibited.

No person shall adverƟse for rent, lease, let out, or loan in any newspaper, or through any other medium including online, social media, or other plaƞorms, any oversized vehicle available for the purpose of uƟlizing the vehicle for living or use as sleeping quarters on any street, alley, or city-owned or city-controlled premises.

9.06.030 Rental of Vehicles in the Public Right of Way
It shall be unlawful for any person who deals in or whose business involves the rental or leasing of vehicles, including recreaƟonal vehicles (RVs) or other oversized vehicles, to park, store, or leave standing any such vehicles, whether occupied or vacant, on any street, alley, or other public right-of-way during the conduct of such business. This prohibiƟon does not apply to a vehicle owned only for personal use and not involved in the business of rental or leasing of vehicles, if otherwise legally parked.

9.06.050 Rental of Space in the Public Right of Way
No person or enƟty other than the City of Palo Alto and any of its departments or designees or other appropriate public enƟty shall have the authority to sell, lease, license, permit, reserve or facilitate the reserving of any street, way, alley, highway, road, parkway, parking space or other public right of way or City-controlled parking lot in the City of Palo Alto without wriƩen authorizaƟon from the City. Any person who purports to sell, lease, license, permit, reserve or facilitate reserving of space in the public right of way via a wriƩen or oral agreement of any kind, with or without compensaƟon, is in violaƟon of this secƟon.

9.06.060 Enforcement

Item 11
Attachment A - Ordinance
of the Council of the City of
Palo Alto Prohibiting Rental
of Vehicles for Human
Habitation

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Each day in which a violaƟon of this Chapter occurs shall consƟtute a separate violaƟon of this Chapter. Each vehicle in violaƟon of this Chapter shall consƟtute a separate violaƟon of this Chapter. ViolaƟons are enforceable through any penalty available by law, including those speciﬁed in Title 1 of this Code.

SECTION 3. Severability. If any provision, clause, sentence or paragraph of this ordinance, or the applicaƟon to any person or circumstances, shall be held invalid, such invalidity shall not aﬀect the other provisions of this Ordinance which can be given eﬀect without the invalid provision or applicaƟon and, to this end, the provisions of this Ordinance are hereby declared to be severable.

SECTION 4. EﬀecƟve Date. This ordinance shall be eﬀecƟve on the thirty-ﬁrst day aŌer the date of its adopƟon.

//
Item 11
Attachment A - Ordinance
of the Council of the City of
Palo Alto Prohibiting Rental
of Vehicles for Human
Habitation

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SECTION 5. CEQA. The City Council ﬁnds and determines that this Ordinance is not a project within the meaning of secƟon 15378 of the California Environmental Quality Act (“CEQA”) because it has no potenƟal for resulƟng in physical change in the environment, either directly or ulƟmately.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

ATTEST:

APPROVED:

______________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: ____________________________
City Manager
______________________________
Assistant City AƩorney ____________________________
Chief of Police
Item 11
Attachment A - Ordinance
of the Council of the City of
Palo Alto Prohibiting Rental
of Vehicles for Human
Habitation

Item 11: Staff Report
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5 Packet Pg. 352 of 469

City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: January 12, 2026
Report #:2512-5748
TITLE
SECOND READING: Interim Ordinance of the Council of the City of Palo Alto Temporarily Extending Interim Ordinance 5645, Amending Various Chapters of Title 16 (Building Regulations) and Title 18 (Zoning) and Title 21 (Subdivisions and Other Divisions of Land) of the Palo Alto Municipal Code to Implement Recent State Housing Laws (FIRST READING: December 8, 2025, PASSED 7-0)

ATTACHMENTS
Attachment A: Interim Ordinance of the Council of the City of Palo Alto Temporarily Extending Interim Ordinance 5645, Amending Various Chapters of Title 16 (Building Regulations) and Title 18 (Zoning) and Title 21 (Subdivisions and Other Divisions of Land) of the Palo Alto Municipal Code to Implement Recent State Housing Laws
APPROVED BY:

Mahealani Ah Yun, City Clerk
Item 12
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Ordinance No. ____

Interim Ordinance of the Council of the City of Palo Alto Temporarily Extending Interim Ordinance 5645, Amending Various Chapters of Title 16 (Building Regulations) and Title 18 (Zoning) and Title 21 (Subdivisions and Other Divisions of Land) of the Palo Alto Municipal Code to Implement Recent State Housing Laws

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. On January 13, 2025, the City Council adopted Ordinance No. 5645, Amending Various Chapters of Title 16 (Building Regulations) and Title 18 (Zoning) and Title 21 (Subdivisions and Other Divisions of Land) of the Palo Alto Municipal Code to Implement Recent State Housing Laws, with an expiration date of December 31, 2025.

B. The City Council now desires to extend these sections of the ordinance until December 31, 2026.

SECTION 2. The effective date of Ordinance No. 5645 is hereby extended to December 31, 2026, unless further extended by the City Council or superseded by replacement legislation.

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. Environmental Review.

The Council finds that the Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that updating the municipal code to implement existing changes in preemptive state housing law will have a significant effect on the environment. //
//
Item 12
Attachment A - Interim
Ordinance of the Council of
the City of Palo Alto
Temporarily Extending
Interim Ordinance 5645,
Amending Various Chapters
of Title 16 (Building
Regulations) and Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) of the
Palo Alto Municipal Code to
Implement Recent State
Housing Laws

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SECTION 4. Effective Date.

This ordinance shall be effective on the thirty-first day after the date of its adoption (second reading).

INTRODUCED:

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ Assistant City Attorney City Manager

____________________________
Director of Planning and
Development Services

Item 12
Attachment A - Interim
Ordinance of the Council of
the City of Palo Alto
Temporarily Extending
Interim Ordinance 5645,
Amending Various Chapters
of Title 16 (Building
Regulations) and Title 18
(Zoning) and Title 21
(Subdivisions and Other
Divisions of Land) of the
Palo Alto Municipal Code to
Implement Recent State
Housing Laws

Item 12: Staff Report
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3 Packet Pg. 355 of 469

City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Community Services
Meeting Date: January 12, 2026
Report #:2511-5568
TITLE
Study and Assessment of Palo Alto Turf Systems and Direct Staff to Proceed with El Camino Park Synthetic Turf Replacement and Natural Grass Pilot; CEQA Status – Categorically and Statutorily Exempt

RECOMMENDATION
The City Council Ad Hoc Committee recommends that City Council direct staff to:

1. Proceed with replacing the existing synthetic turf at El Camino Park with improved synthetic turf using organic infill and to implement risk management measures, including stormwater filtration, enhanced maintenance practices, and related mitigation measures; and

2. Pursue a natural grass pilot project to enhance playability and durability; and

3. Continue to explore opportunities to transition from synthetic turf at Cubberley.

EXECUTIVE SUMMARY
At its November 17, 20251 meeting, City Council considered a staff and Park and Recreation Commission recommendation to approve the Study and Assessment of Turf Systems for the City of Palo Alto Playing Fields2 and to proceed with replacement of the synthetic turf at El Camino Park. City Council voted unanimously to defer action and establish an Ad Hoc Committee to further discuss the Study with staff and return with recommendations. 1 City Council, November 17, 2025, Agenda Item #9, SR# 2508-5070, https://portal.laserfiche.com/Portal/DocView.aspx?id=237438&repo=r-704298fc 2 2025 Study and Assessment of Turf Systems for the City of Palo Alto Playing Fields, Updated: November 3, 2025, https://www.paloalto.gov/files/assets/public/v/1/community-services/staff-report-contracts/open-space-parks- and-golf/turf-study-report/2025-city-of-palo-alto-turf-study-report.pdf Item 13
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Since that meeting, staff have completed additional follow-up requested by City Council and the Ad Hoc Committee, including interdepartmental stormwater assessments, clarification of cost assumptions, analysis of summer field utilization, and further evaluation of natural grass pilot options.

The City Council Ad Hoc Committee met on November 24 and December 9, 2025. Based on those discussions, the Ad Hoc Committee recommends proceeding with replacement of the existing synthetic turf at El Camino Park using improved synthetic turf and organic infill with enhanced risk mitigation measures, advancing a pilot project to improve natural grass playability, and continuing to explore long-term opportunities to transition from synthetic turf at Cubberley.

Staff analysis confirms that El Camino Park remains a critical component of the City’s athletic field system. Removal of the synthetic turf would displace approximately 1,221 permitted players annually, including about 570 Palo Alto residents, with no available capacity at other City fields to absorb this demand. Summer availability does not offset peak fall, winter, and spring demand, when fields are fully programmed.

The Study and Assessment of Turf Systems is intended to inform the City’s long-term policy framework for athletic field surface decisions. Future actions, including Cubberley, will apply this framework using site-specific operational data and pilot outcomes, rather than initiating new systemwide studies. This approach balances fiscal stewardship, operational clarity, and timely decision-making.

BACKGROUND
The City of Palo Alto’s Community Services Department manages a system of natural and synthetic athletic fields, including El Camino Park, Stanford Palo Alto Community Playing Fields (Mayfield), and Cubberley. The synthetic turf field at El Camino Park, installed in 2015, has reached the end of its useful life and requires replacement.

A Capital Improvement Project (PG-24000) to replace the El Camino Park synthetic turf was included in the FY2024 Adopted Capital Budget. In May 20245, the Finance Committee recommended that City Council direct staff conduct additional study to inform future turf replacement decisions. The Turf Study was incorporated into the FY 2025 Budget6, and replacement of the El Camino Park synthetic turf was placed on hold pending completion of the study.
5 Finance Committee, May 21, 2024; Agenda Item #1; SR# 2402-2664, https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=543c404f-2b05-4cbb-b9df-75ffb768545d 6 City Council, June 17, 2024; Agenda Item #28; SR# 2406-3140, https://portal.laserfiche.com/Portal/DocView.aspx?id=73983&repo=r-704298fc&searchid=004d1d0a-4344-4816- %20ab2d-c044073c40cb
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Replacement of the Mayfield synthetic turf was approved by City Council in June 20259. That project achieved substantial completion on December 5, 2025, and was delivered on time and on budget. The fields were immediately opened for public use.

The Study and Assessment of Turf Systems for the City of Palo Alto Playing Fields evaluates synthetic, natural, and hybrid turf systems with respect to playability, lifecycle cost efficiency, maintenance requirements, environmental and health considerations, and community priorities. The Study includes a case study of El Camino Park and provides system-level recommendations for future turf decisions.

On November 17, 2025, City Council considered a staff and Park and Recreation Commission recommendation to approve of the Study and Assessment of Turf Systems and to proceed with replacement of the synthetic turf at El Camino Park. City Council voted 7-0 to defer the item to a date uncertain and establish an Ad Hoc Committee to further discuss the Study with staff and return to Council with recommendations.

A substitute motion to direct staff to proceed with synthetic turf replacement at El Camino Park and to designate Cubberley as a pilot natural grass site failed on a 3-4 vote.

ANALYSIS
The City initiated the Study and Assessment of Turf Systems to provide a consistent, systemwide framework for evaluating synthetic, natural, and hybrid turf systems across City athletic facilities. The Study evaluated lifecycle costs, playability, environmental considerations, maintenance requirements, and community priorities and is intended to guide future capital and operational decisions. At the November 17 Council meeting, the Council approved a new Ad Hoc Committee to further review the Study and return to Council with a recommendation.

Mayor Lauing, Vice Mayor Veenker, and Councilmember Burt comprised the City Council Ad Hoc Committee, and met on November 24 and December 9, 2025. They reviewed the Study and Assessment of Turf Systems and requested additional clarification from staff on several topics. During these meetings, the Ad Hoc Committee sought further information regarding risk mitigation measures including stormwater protection measures, infill materials, PFAS considerations/testing, surface heat, and maintenance practices. Discussions also included lifecycle cost assumptions, seasonal field usage at El Camino Park, and potential pilot approaches for improving natural grass playability. The following sections summarizes the topics that were discussed by the Ad Hoc Committee.
9 3 City Council, June 9, 2025; Agenda Item #9; SR #2501-3998, https://portal.laserfiche.com/Portal/DocView.aspx?id=182834&repo=r-704298fc&searchid=a59660f1-1e15-47f0- %20beac-c9d5573bbaab
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Risk Mitigation Measures
Risk mitigation measures were a central focus of both the Turf Study and subsequent policy discussions. Key areas of concern include PFAS, infill materials, stormwater protection, surface heat, and GMAX6 performance.

Historically, PFAS testing was not conducted for synthetic turf materials. Going forward, staff will pursue material testing and manufacturer verification as part of replacement projects.

Previous fields utilized thermoplastic elastomer (TPE) infill; proposed replacements would use natural cork infill, which reduces plastic content and lowers surface temperatures.

Stormwater protection has also been strengthened. Earlier fields did not include storm drain filtration; proposed mitigation now includes subsurface drainage improvements and/or the installation of inlet filtration where applicable. GMAX testing has been conducted annually to monitor surface hardness, and staff will be continuing this practice with increased scrutiny as fields approach the end of their useful life.

Staff coordinated interdepartmental stormwater and drainage assessments with Parks and Watershed Protection and Storm Drain work groups at multiple locations. At the recently completed Stanford Palo Alto Community Playing Fields (Mayfield) project, drainage is fully subsurface and there are no open drains requiring filtration. At El Camino Park, staff have ordered 13 inlet hat filters and 3 exterior sock filters for installation. At Cubberley, filters are already in place around the field and track area, and staff are evaluating whether additional filtration is warranted.

Cost Assumptions
Public comments and Ad Hoc Committee discussions also requested clarification regarding cost assumptions included in the Turf Study. Synthetic turf replacement costs presented in the Study are based on industry benchmarks and public project data, rather than project-specific bid pricing. Cost estimates include turf replacement only and exclude pad replacement and site- specific improvements. Pad replacement is not assumed with every turf replacement cycle and was excluded from lifecycle cost comparisons due to site-specific condition variability. Lifecycle costs vary based on use intensity, staffing levels, subsurface conditions, and maintenance strategies. Staff are currently reassessing whether full pad replacement is required at El Camino Park and is in the process of obtaining updated, site-specific pricing.

El Camino Park
The Ad Hoc Committee requested additional data on field usage at El Camino Park. Staff provided analysis of summer field utilization at El Camino Park for 2025. In June, approximately 30 percent of available time slots were reserved. In July, approximately 70 to 75 percent of available time slots were reserved. While utilization increases later in the summer, overall summer use remains significantly below peak-season demand.

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Youth field demand in Palo Alto is driven primarily by organized league seasons, which occur in the fall, winter, and spring. Most youth leagues pause during the summer due to travel and camp participation. Winter league play cannot shift to summer because leagues do not operate during that period. During peak seasons, El Camino Park is fully booked on weekdays from approximately 4:00 p.m. to 10:00 p.m. and on weekends from approximately 8:00 a.m. to 10:00 p.m. There is no available capacity at other City fields to absorb El Camino Park use if the synthetic turf were removed.

Based on current winter permitted use, removal of the El Camino Park synthetic turf would displace approximately 1,221 players annually, including approximately 570 Palo Alto residents.

This includes approximately 733 youth players, of whom about 412 are Palo Alto residents, and approximately 488 adult players, of whom about 158 are Palo Alto residents. There is no available capacity elsewhere in the City’s athletic field system to absorb this displaced use.

Natural Grass Pilot Project
Consistent with the Turf Study recommendations, staff will explore opportunities to enhance natural grass playability through a pilot program to determine if different maintenance practices or designs could increase playability on natural grass fields, particularly during the winter months when synthetic turf fields are heavily relied upon. Data collected from the turf pilot will be used to analyze if carrying capacity (playable hours) can be increased on native turf fields through enhanced turf management practices. If so, enhanced turf management could help the city meet user demands and partially offset user impacts from converting synthetic fields to natural turf. Staff consulted with an agronomist, who confirmed that while turf quality could be improved through increased maintenance, overall gains in carrying capacity would likely be limited. While the scope of the proposed pilot is still being finalized, it could involve a range of maintenance adjustments and field renovations, from minor to reconstructing fields with a new base, soil, and grass. Staff will develop an optimized turf management program at select fields and study over the course of one year, if the pilot program results in increased playable hours and field quality at the pilot locations the pilot will be used to inform future capital and operating decisions in turf management.

Staff are evaluating Greer Park and Cubberley natural grass fields as pilot location(s). The pilot program would be part of the FY 2027 budget discussion and is subject to City Council review and appropriation of the required funding. Advancing a natural grass pilot program will assist in continuing evaluation of long-term opportunities to transition from synthetic turf at Cubberley.

Cubberley Field
Cubberley Turf Replacement (CB-28000) is scheduled for FY 2028. Data and findings from the FY 2027 natural grass pilot, combined with the adopted Turf Study framework, will inform staff’s implementation recommendation for Cubberley. This approach allows City Council to make a timely, evidence-based decision without repeating prior systemwide analyses.

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FISCAL/RESOURCE IMPACT
El Camino Park
A Capital Improvement Project (PG-24000) to replace the El Camino Park synthetic turf was originally included in the FY 2024 Adopted Capital Budget. The Turf Study was funded through PG-24000 in approximately $139,613. The current project balance following completion of the Turf Study is approximately $660,000 and was included as part of the annual budget reappropriation process to reflect funding in FY2026 for CIP Project PG-24000.

Replacement of the El Camino Park synthetic turf is estimated to cost between $1.0 million and $1.3 million, with construction targeted for Spring 2026. A budget amendment for the estimated $340,000 - $640,000 gap in PG-24000 is anticipated to be brought to City Council in April.

Natural Grass Pilot Project
Once cost estimates are available, staff will bring forward the pilot program for City Council review, including potential requests for appropriation as needed. This is anticipated to be discussed as part of the proposed FY 2027 budget.

Utilizing the Turf Study as the framework for future decisions avoids the cost and staff time associated with conducting additional systemwide turf studies and supports efficient use of limited capital and operating resources.

STAKEHOLDER ENGAGEMENT
Robust stakeholder engagement was conducted as part of the Study and Assessment of Turf Systems and informed the recommendations previously presented to the City Council. That engagement process is fully documented in the Turf Study and was summarized in the November 17, 2025 staff report.

As part of the Study, City staff facilitated multiple opportunities for public input and stakeholder dialogue, including three focus groups held in July 2025 representing El Camino Park field users, the Sierra Club Loma Prieta Chapter, and the Parks and Recreation Commission Playing Fields Ad Hoc Committee. Standardized questions were distributed in advance, and participants were invited to provide written and verbal feedback. A summary of the focus group outreach, questionnaire, and responses is included in Appendix C11 of the Study. 11 Study and Assessment of Turf Systems, Appendix C: City of Palo Alto Outreach Questionnaire and Responses, https://www.paloalto.gov/files/assets/public/v/1/community-services/staff-report-contracts/open-space-parks- and-golf/turf-study-report/appendix-c-outreach-questions-and-responses.pdf Item 13
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The City also maintained a dedicated project webpage13 to provide transparent and up-to-date information and to encourage community participation. The draft Study was released for public review on August 13, 2025, initiating a formal public comment period that ran through September 3, 2025. During that period, and through Parks and Recreation Commission meetings on August 26 and September 23, 2025, the City received a total of 32 public comments from 21 unique contributors. Appendix F of the Study summarizes these comments and provides a table of key themes and staff responses.

Since the November 17, 2025 City Council meeting, staff have continued to receive public input through standard public processes, including written correspondence to City Council, and public comment at Parks and Recreation Commission meetings. This input focused primarily on implementation considerations, system capacity, environmental mitigation measures, and timing, rather than the underlying findings of the Study.

This staff report builds upon the extensive engagement already completed and incorporates additional clarification and analysis requested by City Council and the Ad Hoc Committee.

ENVIRONMENTAL REVIEW
City Council action on this item is exempt from CEQA review under Sections 15306 and 15262 of the CEQA Guidelines. Approval of this report does not commit the City to a specific construction project. CEQA review will be conducted as required for future implementation actions.

APPROVED BY:

Kristen O'Kane, Community Services Director
13 Turf Study Project Webpage, https://www.paloalto.gov/Departments/Community-Services/Parks-Open-Space- Golf-Division/Whats-Happening-in-Your-Parks/Turf-Study
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Palo Alto Public Improvement Corporation Board
of Directors
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Administrative Services
Meeting Date: January 12, 2026
Report #:2311-2231
TITLE
Approval of Fiscal Year 2025 Palo Alto Public Improvement Corporation's Annual Financial Report. CEQA Status - Not a Project

RECOMMENDATION
Staff recommends that the Board of Directors of the Palo Alto Public Improvement Corporation (PIC) approve the Fiscal Year (FY) 2025 Annual Financial Report for the Palo Alto Public Improvement Corporation.

BACKGROUND
The City established the Palo Alto Public Improvement Corporation in 1983. The PIC is a nonprofit corporation, legally distinct from the City, that allows the City to issue Certificates of Participation (COPs) to fund capital improvements. The City Council serves as the PIC’s Board of Directors. The PIC, through a lease-leaseback structure, finances the acquisition, improvement, and construction of City facilities. The PIC uses the lease payments by the City’s General Fund to pay the debt service on the COPs. On July 13, 1998, Council adopted a resolution establishing itself as the Board of Directors of the PIC. The PIC’s bylaws of require its Board to meet at least annually and approve the annual financial report for the Corporation.

In 1983 and 1998, the City of Palo Alto issued COPs to fund improvements to the Civic Center and the Golf Course, respectively. The Civic Center bonds were refinanced in 2002 to take advantage of lower interest rates and COPs were issued to finance the construction of commercial space adjacent to the new parking structure on Bryant/Florence Street. These bonds (referred to as the Downtown Parking Improvement bonds or 2002B COP) were used to build a two story above-ground structure of approximately 7,638 square feet at 445 Bryant Street. That structure was previously leased and operated as a privately owned fitness club until 2022 and will be re-opened as a downtown community center with classes, summer camps, a teen center operated by the Community Services Department and a senior nutrition program operated by La Comida.

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In fiscal year 2018, the City issued the 2018 Capital Improvement Project and Refinancing COPs in the amount of $9 million to refinance the 2002B COPs ($0.6 million) and to finance renovations for the Palo Alto Municipal Golf Course ($8.4 million). Fire Station 1 was used as the leased property and collateral for these COPs since it had a market value closer to the COPs issuance amount. This provided a net present value savings of $0.2 million or 6.47% on the 2002B refunded bonds and substituted Fire Station 1 as the leased property/collateral. This refinancing allowed the City to then use the Civic Center as collateral for the 2021 Public Safety building COPs.

In fiscal year 2019, the City issued the California Avenue Parking Garage Tax-exempt Series A ($26.8 million plus $4.9 million premium) and Taxable Series B ($10.6 million) COPs. These bonds were issued to fund the construction of the new California Avenue parking garage.

Rinconada Library was used as collateral during the garage construction. The garage was completed in December 2020; staff will convert the leased property/collateral for these COPs to the garage to preserve greater operational flexibility to use this garage facility over the life of the bonds (e.g., lease portion of the garage for private parking or other commercial use), a portion of the bonds were issued as taxable bonds.

In fiscal year 2021, the City issued the 2021 Public Safety Building tax-exempt COPs ($101.5 million plus $6.5 million premium) for the construction of the City’s new public safety building.

The debt service is payable solely from and secured by the lease payments to be made by the City’s General Fund to the Public Improvement Corporation pursuant to the Lease Agreement.

Civic Center was used as collateral during the building construction and the newly built Public Safety Building will become the leased property/collateral for these COPs. Staff will switch the leased property/collateral before Spring 2026.

The reserve account requirement was waived on all the outstanding COPs due to the City being a highly rated bond issuer. This resulted in additional bonds issuance amount and the related interest savings.

ANALYSIS
The attached financial statement shows the financial condition of the PIC. The debt service payments have been made on time and all financial requirements have been met. At year-end, June 30, 2025, total outstanding debt principal on the COPs equaled $138.5 million as follows:

COPs Description
Principal
Outstanding
(millions)
Fiscal Year Debt
will be Retired
2018 Capital Improvement (2002B
Refinance and Golf Course) $7.8 2048
2019 California Ave. Parking Garage $33.6 2049
2021 Public Safety Building $97.1 2051
Total COPs $138.5
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Staff recommends that the Board of Directors of the Palo Alto Public Improvement Corporation (PIC) approve the FY 2025 Annual Financial Report for the PIC.

POLICY IMPLICATIONS
Approval of the Palo Alto Public Improvement Corporation’s Annual Financial Report is consistent with prior Council policy direction and resolutions.

FISCAL/RESOURCE IMPACT
Approval of the Palo Alto Public Improvement Corporation’s Annual Financial Report will have no resource impact.

STAKEHOLDER ENGAGEMENT
Staff works internally and coordinates with the City Auditor’s Office third party external auditor Macias Gini & O’Connell LLP (MGO) to prepare this report.

ENVIRONMENTAL REVIEW
This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378, because it is an administrative activity that will not result in either a direct or reasonably foreseeable indirect physical changes in the environment.

ATTACHMENTS
Attachment A: Palo Alto Public Improvement Fiscal Year 2025 Annual Financial Report APPROVED BY:

Lauren Lai, Administrative Services Director
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PALO ALTO

PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto, California) Annual Financial Report
For the Year Ended June 30, 2025
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PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto, California) Annual Financial Report
For the Year Ended June 30, 2025

Table of Contents

Page

Independent Auditor’s Report ................................................................................................................... 1

Management’s Discussion and Analysis (Unaudited) .............................................................................. 3

Basic Financial Statements

Government-wide Financial Statements:

Statement of Net Position ................................................................................................................... 5 Statement of Activities ....................................................................................................................... 6

Debt Service Fund Financial Statements:

Balance Sheet ..................................................................................................................................... 7 Statement of Revenues, Expenditures and Changes in Fund Balance ................................................ 8

Notes to the Basic Financial Statements .................................................................................................. 9

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w
ww.mgocpa.com Macias Gini & O’Connell LLP
2121 N. California Boulevard, Suite 750
Walnut Creek, CA 94596
1 Independent Auditor’s Report
Board of Director of the
Palo Alto Public Improvement Corporation
The Honorable Mayor and
Members of the City Council of the
City of Palo Alto, California
Opinions
We have audited the financial statements of the go vernmental activities and the major fund of the Palo Alto Public Improvement Corporation (Corporation), a component unit of the City of Palo Alto, California (City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the Corporation’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the major fund of the Corporation as of June 30, 2025, and the respective ch anges in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statemen ts section of our report. We are required to be independent of the Corporation and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements The Corporation’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles gene rally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Corporation’s ability to continue as a going concern for twelve months beyond the fina ncial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

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2 Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conduc ted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of intern al control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

• exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material misstatem ent of the financial stat ements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• obtain an understanding of internal control re levant to the audit in order to design audit procedures that are appropriate in the circumst ances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s internal control. Accordingly, no such opinion is expressed.
• evaluate the appropriateness of accounting po licies used and the reasonableness of significant accounting estimates made by management, as we ll as evaluate the overall presentation of the financial statements.
• conclude whether, in our judgment, there are c onditions or events, considered in the aggregate, that raise substantial doubt about the Corporati on’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant a udit findings, and certain internal control–related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis be presented to supplement the b asic financial statements. Such information is the responsibility of management and, although not a part of the basic financ ial statements, is required by the Governmental Accounting Standards Bo ard who considers it to be an ess ential part of financial reporting for placing the basic financial statements in an appr opriate operational, economic, or historical context.

We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management a bout the methods of preparing the information and comparing the information for consistency with ma nagement’s responses to our inquiries, the basic financial statements, and other knowle dge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Walnut Creek, California
October 31, 2025

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PAL ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto, California) Management’s Discussion & Analysis (Unaudited)
For the Year Ended June 30, 2025

3 The Palo Alto Public Improvement Corporation (Corpor ation), a component unit of the City of Palo Alto (City), follows the provisions of Govern mental Accounting Standards Board (GASB). The Corporation is controlled by the City and was organized to assist the City in financing public improvements. The Corporation issues debt and turns the proceeds of the debt over to the City unde r lease agreements that provide a revenue source for the repa yment of this debt. The Corporation has three outstanding debts and has turned over the proceeds to th e City, which pledged certain lease pa yments as collateral for this debt as discussed in Note 4 to the financial statements.

FINANCIAL HIGHLIGHTS

GASB requires the issuance of government-wide financial statements as well as fund financial statements.

The government-wide financial statements report the ba lance of the Corporation’s long-term debt while the individual fund statements do not.

In fiscal year 2018, the City issu ed 2018 Capital Improvement Project and Refinancing Certificates of Participation (2018 COPs) in the amount of $9.0 million to refinance the 2002B Downtown Parking Improvements Certificates of Partic ipation remaining balance of $0.8 m illion, and also to fund the Palo Alto Municipal Golf Course renovations.

In fiscal year 2019, the City issued the 2019 Califor nia Avenue Parking Garage tax exempt Series A and taxable Series B Certificates of Participation (2019A and 2019B COPs) in the amount of $26.8 million plus $4.9 million premium, and $10.6 million, respectiv ely. The 2019A and 2019B COPs were issued to fund the construction of the new California Avenue parking garage.

In fiscal year 2021, the City issued the 2021 Public Sa fety Building Certificates of Participation (2021 COPs) in the amount of $101.5 millio n plus $6.5 million premium. The 2021 COPs were issued to fund the construction of the new public safety building.

As of June 30, 2025, the Corporation has th e following outstanding debt: the 2018 COPs, 2019A and 2019B COPs, and 2021 COPs.

At the government-wide level, the interest and fiscal agent charges were $4.3 million for fiscal year 2025, a decrease of $0.2 million from the prior year. The in terest on leases from the City of Palo Alto was $4.3 million, a decrease of $0.2 million from the prior year . The decrease is mainly due to the decrease in outstanding debt from the prior year.

The Corporation ended fiscal year 2025 with tota l assets of $148.8 million, a decrease of $3.6 million from the prior year. Total assets consisted of $0.1 million in cash and investments, $0.8 million of lease interest receivable from the City of Palo Alto, and $147.9 million of investment in leases to the City of Palo Alto. The total liabilities we re $148.7 million, a decrease of $3.6 million from the prior year. The decrease of assets and liabilities resulted from scheduled principal and interest payments of the 2018 COPs, the 2019A and 2019B COPs, and the 2021 COPs.

As of June 30, 2025, the Corporation reported a
$0.1 million restricted net position.

At the fund level, the Corporation’s revenues exceeded expenditures by $15.0 thousand. As of June 30, 2025, the Corporation had one fund, th e Debt Service Fund, which reported a $0.1 million restricted fund balance.

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PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto, California) Management’s Discussion & Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025

4 OVERVIEW OF THE CORPORATION’S BASIC FINANCIAL STATEMENTS

The annual financial report is comprised of two parts:

1) Management’s discussion and analysis (this part),

2) The basic financial statements, which include the government-wide and the fund financial statements, along with the notes to these financial statements.

The basic financial statements comp rise the government-wide financial statements and the fund financial statements. These two sets of financial statements provide two different views of the Corporation’s financial activities and financial positions, both short-term and long-term.

The government-wide financial statements provide a long-term view of the Corporation’s activities as a whole, and comprise the statement of net position and the statement of activities. The statement of net position provides information about th e financial position of the Corporation as a whole, including all its long-term liabilities on the full accrual basis, similar to that used by corporations. The statement of activities provides information about all the Cor poration’s revenues and expenses on the full accrual basis, with the emphasis on measuring net revenues or expenses of the Corporation’s program. The statement of activities explains in detail the change in net position for the year.

The fund financial statements report the Corporation’s operations in more detail than the corporate-wide statements and focus primarily on the short-term ac tivities of the debt service fund. Fund financial statements measure only current revenues and expend itures; current assets, liabilities and fund balances; and they exclude capital assets and long-term debt.

Together, these statements along with the notes to the financial statements are called the basic financial statements.

DEBT ADMINISTRATION

The Corporation issues debt in the form of Certificat es of Participation (COPs) to be repaid from future lease receipts from the City. Legally, these COP issues are the Corporation’s debt only; the City is liable only for the payment of the amounts set forth in the lease securing each debt issue.

As of June 30, 2025, the Corporation has the following outstanding debt (excluding premium): 2018 COPs, 2019A and 2019B COPs, and 2021 COPs with outstanding principal balances of $7.8 million, $33.6 million and $97.1 million, respectively.

ECONOMIC OUTLOOK AND MAJOR INITIATIVES

The economy of the City and its major initiatives for the coming year are discussed in detail in the City’s Annual Comprehensive Financial Report.

CONTACTING THE CORPORATION’S FINANCIAL MANAGEMENT

These basic financial statements are intended to provid e citizens, taxpayers, investors, and creditors with a general overview of the Corporation’s finances. Qu estions about these financial statements should be directed to the Finance Department of the City of Palo Alto, 250 Hamilton Avenue, Palo Alto, CA 94301.

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Assets
Cash held for operations 112,885 $
Cash and investments held by trustee 4,186
Lease interest receivable 775,266
Investment in leases to the City of Palo Alto 147,880,762 Total assets 148,773,099
Liabilities
Interest payable 775,266
Long-term debt:

Due in one year 3,743,253
Due in more than one year 144,137,509
Total liabilities 148,656,028
Net Position
Restricted for debt service 117,071 $

PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto)
Statement of Net Position
June 30, 2025
See accompanying notes to financial statements.
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Expenses
Interest and fiscal agent charges 4,295,076 $
Program revenues
Interest on leases from the City of Palo Alto 4,295,673 Net program revenues 597
General revenues
Investment earnings 14,430
Change in net position 15,027
Net position, beginning of the year 102,044
Net position, end of the year 117,071 $

PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto)
Statement of Activities
For the Year Ended June 30, 2025
See accompanying notes to financial statements.
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Assets
Cash held for operations 112,885 $
Cash and investments held by trustee 4,186
Lease interest receivable 775,266
Investment in leases to City of Palo Alto 147,880,762
Total assets 148,773,099 $
Deferred Inflows of Resources
Unavailable lease receipts from the City of Palo Alto 148,656,028 $ Fund balance
Restricted for debt service 117,071
Total deferred inflows of resources and fund balance 148,773,099 $ Reconciliation of fund balance to net position
Fund balance restricted for debt service 117,071 $
Long-term receivables are not available to pay for current period expenditures and are considered unavailable on the governmental fund balance sheet. 148,656,028 Some liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in governmental funds.

Interest payable (775,266)
Long-term debt due within one year (3,743,253)
Long-term debt due in more than one year (144,137,509)
Net position of governmental activities 117,071 $

PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto)
Balance Sheet
June 30, 2025
Debt Service Fund
See accompanying notes to financial statements.
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Revenues:

Lease receipts from the City of Palo Alto:

Principal 3,170,000$
Interest 4,729,196
Other 597
Investments earnings 14,430
Total revenues 7,914,223
Expenditures:

Debt service:

Principal repayment 3,170,000
Interest and fiscal agent charges 4,729,196
Total expenditures 7,899,196
Net change in fund balance 15,027
Fund balance, beginning of the year 102,044
Fund balance, end of the year 117,071 $
Reconciliation of net change in fund balance to change in net position Net change in fund balance - debt service fund 15,027 $ Amounts reported for governmental activities in the statement of activities are different because:

Repayment of bond principal is an expenditure in the governmental funds, but in the statement of net position the repayment reduces long-term liabilities. 3,170,000 Interest accrued on long-term debt and amortization of bond premium do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds.

Change in interest payable 25,867
Amortization of bond premium 408,253
Some amounts reported in the statement of revenues, expenditures and changes in fund balances reflect the timing of collection of assets which are not includable as revenues on the statement of activities.

Lease receipt for bond principal repayment (3,170,000)
Lease receipt for interest payment (25,867)
Impact of bond premium amortization on lease receipt (408,253) Change in net position of governmental activities 15,027 $

PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto)
Statement of Revenues, Expenditures and Changes in Fund Balance For the Year Ended June 30, 2025
Debt Service Fund
See accompanying notes to financial statements.
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PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto, California) Notes to the Basic Financial Statements
For the Year Ended June 30, 2025

9 NOTE 1 – DESCRIPTION OF REPORTING ENTITY

The Palo Alto Public Improvement Corporation (the Corporation) was incorporated in September 1983 under the General Nonprofit Corporation Law of the St ate of California to acquire, construct and lease capital improvement projects. The Corporation is exempt from federal income taxes under Section 501(c)(4) of the Internal Revenue Code. Th e Corporation provides financing of public capital improvements for the City through the issuance of Cer tificates of Participation (COPs), a form of debt which allows investors to participate in a stream of future lease payments. Proceeds from the COPs are used to construct projects which are leased to the City for lease payments which are sufficient in timing and amount to meet the debt service requirements of the COPs.

The Corporation is an integral part of the City of Palo Alto, California (City). It primarily services the City and its governing body is composed of the City Council. Therefore, the financial data of the Corporation has also been included as a blended com ponent unit within the City’s annual comprehensive financial report for the year ended June 30, 2025.

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Presentation
Government-wide Statements: The statement of net position and the statement of activities include the financial activities of the Corporation. Eliminations have been made to minimize the double counting of internal activities.

The statement of activities presents a comparison betw een direct expenses and program revenues for each function of the Corporation’s activities. Direct expen ses are those that are specifi cally associated with a program or function and, therefore, are clearly iden tifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program.

Revenues that are not classified as program revenu es, including investment earnings, are presented as general revenues.

Fund Financial Statements: The fund financial statements provide information about the Corporation’s funds. The emphasis of fund financial statements is on major individual funds, of which the Corporation only reports one debt service fund.

(b) Major Fund
Major funds are defined as funds that have either assets, liabilities, re venues or expenditures equal to ten percent of their fund-type total and five percent of the grand total. The Corporation has one fund which is reported as a major governmental fund in the accompanying financial statements as follows:

Debt Service Fund – This fund accounts for debt service payments on the Corporation’s long-term debt.

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PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto, California) Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

10 NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)

(c) Basis of Accounting
The government-wide financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned ad expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers revenues susceptible to accrual to be available if the revenues are collected within ninety days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt , claims and judgments, a nd compensated absences, which are recognized as expenditures to the extent they have matured.

(d) Investment in Leases

Improvements financed by the Corporation are leased to the City for their entire estimated useful life and will become the City property at the conclusion of the lease on November 1, 2050. The Corporation therefore records the present value of the lease and c onsiders the leased improvement to have been sold for this amount when leased.

(e) Net Position
The government-wide financial statements utilize a net position presentation. Net position is further categorized as net investment in capital assets, restrict ed and/or unrestricted. As of June 30, 2025, the entire net position was considered restricted.

Restricted Net Position – This category presents external restri ctions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.

(f) Deferred Inflows of Resources
A deferred inflow of resources is defined as an acquis ition of net asset or fund balances applicable to a future reporting period and will not be recognized as an inflow of resources (revenue) until that time. On the governmental fund balance sheet, the lease recei pts from the City corresponding to the debt are recorded as deferred inflows of resources since the balances are not current financial resources.

(g) Fund Balances
At June 30, 2025, the Corporation’s government al fund’s fund balances include the following classification:

Restricted Fund Balance – includes amounts that can be spent onl y for the specific purposes stipulated by external resource providers, constitutio nally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers.

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PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto, California) Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

11 NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)

(h) Estimates
The preparation of basic financial statements in c onformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

NOTE 3 – CASH AND INVESTMENTS HELD BY TRUSTEE

(a) Interest Rate Risk
Interest rate risk is the risk that a change in market interest rates will adversely affect the fair value of an investment. Normally, the longer it takes an investme nt to reach maturity, th e greater will be that investment’s sensitivity to changes in market rates. Information about the sensitivity of the fair values of the Corporation’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the Corporation’s investments by maturity:

Investment Type Amount Maturity Date
Money Market Mutual Fund 4,186 $ 42 days

(b) Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. As of June 30, 2025, the Corp oration’s investments in money market mutual funds are rated AAAm by Standard & Poor’s.

(c) Fair Value Hierarchy
The City categorizes its fair value measurements with in the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The Corporation’s investments in money market mutual funds are not subject to the fair value hierarchy.

(d) Investment Policy
The Corporation must maintain required amounts of cash and investments by trustee under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged as reserves to be used if the Corporation fails to meet its obligation under these debt issues. The California Government Code (Code) requires these funds to be invested in accordance with bond indentures or State statutes. All these funds have been invested as permitted under the Code a nd bond indentures, including the cash held for operations invested in the City’s investment pool. The City’s investment policy is described in detail in the City’s Annual Comprehensive Financial Report.

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PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto, California) Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

12 NOTE 3 – CASH AND INVESTMENTS HELD BY TRUSTEE (Continued)

The table below identifies the investme nt types that are authorized by the City’s investment policy. The table also identifies certain provisions of the City’s Investment Policy that address interest rate risk, credit risk and concentration of credit risk.

Maximum
Maturity
Minimum
Credit Quality
Maximum
Percentage
of Portfolio
Maximum
Investment in
One Issuer
U.S. Government Securities 10 years (*) N/A No Limit No Limit U.S. Government Agency Securities 10 years (*) N/A No Limit (A) No Limit Certificates of Deposit 10 years (*) N/A 20% 10% of the par value of
portfolio
Bankers Acceptances 180 days N/A 30% $5 m illion
Commercial Paper 270 days A-1 15% $3 m illion (B)
Local Agency Investment Fund N/A N/A No Limit $75 m illion per account
Short-Term Repurchase Agreements 1 year N/A No Limit No Limit City of Palo Alto Bonds N/A N/A No Limit No Limit
Money Market Deposit Accounts N/A N/A No Limit No Limit Mutual Funds N/A N/A 20% 10%
Negotiable Certificates of Deposit 10 years (*) N/A 10% $5 million Medium-Term Corporate Notes 5 years AA 10% $5 million
10 years (*) AA/AA2 40% No Limit
Supranational 5 years AA/AA2 20% 10% of the par
value of
portfolio
(A)
(B) The lesser of $3 million or 10% of outstanding commercial paper of any one institution. (*) The maximum maturity is based on the Investment Policy that is approved by the City Council and is less restrictive than the California Governmental Code.

Authorized Investment Type
California State and Municipal and other
49 State Issued Bonds
Callable and multi-step securities are limited to no more than 25% of the par value of the portfolio, provided that: 1) the potential call dates are known at the time of purchase, 2) the interest rates at which they "step- up" are known at the time of purchase, and 3) the entire face value of the security is redeemed at the call date.

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PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto, California) Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

13 NOTE 4 – LONG-TERM DEBT

The Corporation’s long-term debt activities are presented below:

Balance Balance Amount due
July 1, 2024 Retirements June 30, 2025 in one year
Certificates of Participation
2018 Capital Improvement Project

2.20-4.22%, due 11/1/2047 7,985,000 $ 205,000 $ 7,780,000 $ 215,000 $ 2019 California Ave. Parking Garage
Series A & B

2.5%-5%, due 11/1/2048 34,365,000 720,000 33,645,000 760,000 2021 Public Safety Building
2%-5%, due 11/1/2050 99,370,000 2,245,000 97,125,000 2,360,000 Add: Unamortized Premium 9,739,015 408,253 9,330,762 408,253 Total 151,459,015 $ 3,578,253 $ 147,880,762 $ 3,743,253 $

On June 1, 2018, the City issued the 2018 Capita l Improvement Project and Refinancing Certificates of Participation (2018 COPs) in the amount of $9.0 million to fully refinance the 2002B Downtown Parking Improvement Project Certificates of Participation and to fund the renovation of the Palo Alto Municipal Golf Course. Principal payments are due annually on November 1 and interest payments semi-annually at various rates on May 1 and November 1. The 2018 CO Ps are secured by lease revenues received by the Corporation from any City’s General Fund revenue source.

On March 21, 2019, the City issued the 2019 Califor nia Avenue Parking Garage tax exempt Series A and taxable Series B Certificates of Participation (2019A and 2019B COPs) in the amount of $26.8 million plus $4.9 million premium, and $10.6 million, respec tively, for the construction of the new California Avenue Parking Garage. Principal payments are due annually on November 1 and interest payments semi-annually at various rates on May 1 and November 1. The 2019A and 2019B COPs are secured by lease revenues received by the Corporation from any City’s General Fund revenue source.

On March 24, 2021, the City issued the 2021 Public Safety Building Certificates of Participation (2021 COPs) in the amount of $101.5 million plus $6.5 mil lion premium for the construction of the new public safety building. Principal payments are due annually on November 1 and interest payments semi-annually at various rates on May 1 and November 1. The 2021 COPs are secured by lease revenues received by the Corporation from any City’s General Fund revenue source.

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PALO ALTO PUBLIC IMPROVEMENT CORPORATION
(A Component Unit of the City of Palo Alto, California) Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025

14 NOTE 4 – LONG-TERM DEBT (Continued)

Future annual debt service on the outstanding debt is shown below:

For the Year
Ending June 30, Principal Interest Total
2026 3,335,000 $ 4,569,844 $ 7,904,844 $ 2027 3,495,000 4,402,268 7,897,268 2028 3,675,000 4,226,076 7,901,076 2029 3,865,000 4,040,594 7,905,594 2030 4,050,000 3,845,456 7,895,456 2031-2035 23,090,000 16,373,857 39,463,857 2036-2040 27,300,000 12,124,665 39,424,665 2041-2045 31,570,000 7,796,552 39,366,552 2046-2050 33,215,000 2,745,366 35,960,366 2051 4,955,000 55,744 5,010,744 138,550,000$ 60,180,422 $ 198,730,422 $

Events of Default and Acceleration Clauses
Generally, the Corporation is consider ed to be in default if the Corporation fails to pay the principal of and interest on the outstanding long -term debt when become due and payable. If an event of default has occurred and is continuing, the principal of the long-te rm debt, together with the accrued interest, may be declared due and payable immediately.

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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: January 12, 2026
Report #:2512-5778
TITLE
Review and Approval of Suggested Changes to the City Council Procedures and Protocols Handbook as Recommended by the Policy and Services Committee. CEQA Status – Not a project.

RECOMMENDATION
The Policy and Services Committee recommends that the City Council review and approve suggested changes to the City Council Procedures and Protocols Handbook. The recommended suggestions relate to Brown Act Amendments, Proclamations, Consent Calendar Process, and Mayor/Vice Mayor Compensation. Other suggested changes may also be discussed.

BACKGROUND
The Municipal Code provides that the City Council shall adopt “a handbook of procedural rules governing any aspect of the conduct of meetings and hearings for the Council and its standing committees, including but not limited to agenda requirements, the order of business, rules of order, rules of evidence, closed session procedures and rules for public participation in meetings.” The City Council adopted the first version of the City Council Procedures and Protocols Handbook in the early 2000s and regularly updates the Handbook. The Handbook is available on the City’s website.1
Section 8.1 of the Handbook states the frequency that City Council should review the Handbook.

This year is the first year of returning to a regular review of the Handbook as the City Council chose not to do additional Handbook review in late 2024 given the extensive work done in 2023 and early 2024.

On December 15, 2025, the City Council adopted two changes to the Handbook recommended by the Policy and Services Committee.2 These recommended changes came from the November 1 https://www.cityofpaloalto.org/files/assets/public/v/6/city-clerk/city-charterprocedures/2024-adopted-council- protocols-and-procedures-manual-10.2024.pdf
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19, 2025 Policy and Services Committee 5 discussion of recurring City Council items and were suggestions intended to lighten the load on City Council meeting agendas. Changes went to City Council for approval separate from the regular Handbook review as one of them was a timely item for approval. The two items included reviewing the Handbook in odd years and providing committee chairs the discretion to call January committee meetings if needed.

On December 9, 2025, the Policy and Services Committee, during this year’s regular Handbook review, discussed suggested changes from both staff and members of the City Council. After discussion, the Committee recommended Handbook changes related to some of the suggested items. The Analysis section of this report summarizes the proposed changes. Other suggestions (provided in Attachment B) were not recommended at this time but may be further discussed by the full City Council.

ANALYSIS
The Policy and Services Committee recommends the following revisions to the Handbook:

1. Brown Act Amendments (Procedures Section 2.3): Updates based on SB 707: Further information below (copied from the Policy and Services December 9, 2025 staff report)

2. Proclamations (Procedures Section 3.2): Based on previous City Council direction in 2023, staff updated the guidelines for proclamation issuance based on best practice.

3. Consent Calendar (Procedures Section 3.8): If an item is pulled from Consent, hear it as the first action item for brief discussion (limited to 10 minutes) at that meeting if feasible, and continue it to another meeting if it is not resolved within that timeframe.

4. Mayor and Vice Mayor Additional Compensation (Protocols Section 4.1): Update this language to remove this section from the Handbook given that City Councilmember compensation is already at the highest authorized level according to State law.

The redlined draft Handbook is included in Attachment A with these proposed changes. Of note, in the redlined Handbook, staff also included language adopted on December 16, 2024 6 related to Councilmember expense reimbursement. These changes are shown in redline since they are not currently reflected in the published Handbook.

Recommended revision #1 - SB 707 Brown Act Amendments Updates SB 707 extends and revises the alternative teleconferencing provisions of AB 2449, which was also known as “just cause” or “emergency circumstances” teleconferencing. The redlines in the 5 Policy and Services Committee Meeting, November 19, 2025, Item #5; Link:
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attachment incorporate the following new alternative teleconferencing provisions, effective January 1, 2026:
• Extends expiration date to 2030,
• Removes the procedural differences between attending remotely for “just cause” or for “emergency circumstances,”
• Expands “just cause” to include certain military service obligations, and • Requires meeting minutes to identify specific provision a member relies on to participate remotely.

Other requirements associated with just-cause alternative teleconferencing, such as participating by video, remain in place.

Staff will return to the Committee and the City Council to discuss and seek recommendations on the implementation of other SB 707 provisions. The City Clerk’s Office and City Attorney’s Office are coordinating with several other departments to ensure these changes can be discussed by Councilmembers and implemented before SB 707’s effective dates in January and July of 2026.

Staff anticipates public discussion of these changes at the following meetings:
Quarter 1 Calendar Year 2026 –tentatively February 2026 Policy and Services Committee Policy guidance on public outreach and access, subsidiary bodies’ teleconferencing, and technology disruption policy.
Quarter 2 Calendar Year 2026 –Action Item at City Council Meeting anticipated in spring Adoption of a policy regarding technology disruptions during council meetings and adoption or direction regarding public outreach and access and subsidiary bodies.

Preview new practices regarding virtual public participation and agenda translation, as applicable.

Recommended Revision #2 – Proclamations
Staff provided a recommended revision to reflect current practice with minor clarifications.

Recommended Revision #3 – Handling of pulled Consent Calendar Items Following discussion, the Policy and Services Committee recommended revised wording to facilitate resolution of straightforward issues, while recognizing that some issues may require deferral to future City Council meetings.

Recommended Revision #4 – Mayor and Vice Mayor Additional Compensation The Policy and Services Committee recommended deleting this unnecessary language in Protocols Section 4.1. The language became obsolete when City Council compensation was increased. On the substance of the issue, the Committee reviewed prior City Council action which sought to establish a committee of Council-appointed designees to review Item 15
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and make recommendations for updated Councilmember compensation. The Councilmember compensation committee was never formed. The Policy and Services Committee discussed the need for an alternative approach for identifying committee members.

FISCAL/RESOURCE IMPACT
No fiscal impact known at this time for the Handbook review.

STAKEHOLDER ENGAGEMENT
Staff solicited suggestions from City Councilmembers with a due date of December 1, 2025. Those items were included for Committee review at the December 9, 2025 meeting.

ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because revising the Procedures and Protocols Handbook is a continuing administrative or maintenance activity. CEQA Guidelines section 15378(b)(2).

ATTACHMENTS
Attachment A: Council Protocols and Procedures Manual December 2025 Redline Attachment B: Compilation of All Suggested Handbook Ideas, 2025 APPROVED BY:

Ed Shikada, City Manager
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If you have any questions about this handbook, please feel free to contact the City Clerk by phone at (650) 329-2571 and e-mail at [email protected] or the City Attorney by phone at (650) 329-2171 and e-mail at [email protected].

CITY COUNCIL

PROCEDURES AND

PROTOCOLS

HANDBOOK
Procedures and Protocols Approved 09/09/2024
(lLast uUpdated January 12, 2026 505/13/2024 and
05/20/2024)
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TABLE OF CONTENTS
Introduction........................................................................................................................................3 PART I: CITY COUNCIL PROCEDURES....................................................................................................4 SECTION 1 – CITY COUNCIL ORGANIZATION AND STRUCTURE..............................................................................4

1.1 Annual Organization of City Council .........................................................................................................4

1.2 Council Committees..................................................................................................................................4

1.3 Respect the Work of the Council Committees..........................................................................................7 SECTION 2 - GENERAL PROCEDURES FOR CITY COUNCIL MEETINGS.....................................................................7

2.1 Meeting Schedules, Agendas and Supporting Materials ..........................................................................8

2.2 The Mayor and Vice Mayor Should Work with Staff to Plan the Council Meetings..................................9

2.3 Attendance Procedures ............................................................................................................................9

2.4 Colleagues’ Memos.................................................................................................................................14 SECTION 3 - CITY COUNCIL MEETING ORDER OF THE AGENDA ...........................................................................15

3.1 Call to Order ...........................................................................................................................................15

3.2 Special Orders of the Day .......................................................................................................................16

3.3 Closed Sessions.......................................................................................................................................16

3.4 Agenda Changes, Additions, and Deletions ............................................................................................18

3.5 General Public Comment (see Section 5 on Public Participation for more details about “General Public Comment”) ..................................................................................................................................18

3.6 Councilmember Questions, Comments, and Announcements (including reports on Boards, Commissions, and Committees).............................................................................................................18

3.7 Study Sessions ........................................................................................................................................18

3.8 Consent Agenda......................................................................................................................................19

3.9 City Manager’s Comments......................................................................................................................21

3.10 Action Items............................................................................................................................................21

3.11 Adjournment ..........................................................................................................................................21 SECTION 4 - PROCEDURES AT CITY COUNCIL MEETINGS.....................................................................................22

4.1 Council Motion and Voting Processes throughout the Agenda (exist. Procedures 2.4 U and V) ............22

4.2 Motion Procedures .................................................................................................................................22

4.3 Voting and Debate of Agenda Items .......................................................................................................26

4.4 Quasi-Judicial Matters ............................................................................................................................28 SECTION 5 - HOW THE PUBLIC ENGAGES WITH THE CITY COUNCIL ....................................................................30

5.1 Public Participation During City Council Meetings..................................................................................30 SECTION 6 - CITY COUNCIL QUESTIONS ON AGENDA-RELATED ITEMS ...............................................................33

6.1 Submit Questions on Council Agenda Items Ahead of the Meeting .......................................................33

6.2 City Council emails for Agenda-Related Items Procedure.......................................................................34 SECTION 7 – COUNCIL VALUES AND ANNUAL COUNCIL PRIORITIES ...................................................................34 SECTION 8 - PROCEDURES AND PROTOCOLS REVIEW AND ENFORCEMENT .......................................................36

8.1. Annual Review and Update of the Handbook.........................................................................................36

8.2. Commitment to Follow the Procedures and Protocols Handbook .........................................................36

8.3 Procedures for Enforcement....................................................................................................................36 PART II: CITY COUNCIL PROTOCOLS ...................................................................................................41 SECTION 1 – CITY COUNCIL CONDUCT.................................................................................................................41 Item 15
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1.1 Positive Work Place Environment...........................................................................................................41

1.2 Comply with Law ....................................................................................................................................41

1.3 City Council Core Responsibilities (exist. Protocol Sec. 1)......................................................................41

1.4 General Member Conduct ......................................................................................................................42

1.5 Decisions Based on Merit .......................................................................................................................43

1.6 Advocacy 43

1.7 Council Conduct with City Staff...............................................................................................................44

1.8 Use of Staff Time.....................................................................................................................................45 SECTION 2 - CITY COUNCIL CONDUCT WITH PALO ALTO BOARDS AND COMMISSIONS .....................................46

2.1 If Attending a Board or Commission Meeting, Identify Your Comments as Personal Views or Opinions. 46 2.2 Refrain from Lobbying Board and Commission Members.......................................................................46

2.3 Remember that Boards and Commissions are Advisory to the Council as a Whole, not as Individual Councilmembers ....................................................................................................................................46

2.4 Concerns about an Individual Board or Commission Member Should be Pursued with Tact..................46

2.5 Be Respectful of Diverse Opinions ..........................................................................................................47

2.6 Keep Political Support Away from Public Forums ...................................................................................47

2.7 Maintain an Active Liaison Relationship..................................................................................................47

2.8 Role of Council Liaison to Board or Commission.....................................................................................47 SECTION 3 - STAFF CONDUCT WITH CITY COUNCIL .............................................................................................47

3.1 Respond to Council Questions as Fully and as Expeditiously as is Practical............................................47

3.2 Respect the Role of Councilmembers as Policy Makers for the City.......................................................47

3.3 Demonstrate Professionalism and Non-Partisanship in all Interactions with the Community and in Public Meetings......................................................................................................................................47

3.4 It is Important for the Staff to Demonstrate Respect for the Council at all Times..................................48 SECTION 4 - CITY COUNCIL AND BOARDS AND COMMISSIONS POLICY FOR TRAVEL AND MISCELLANEOUS EXPENSE REIMBURSEMENT ................................................................................................................................48

4.1 Miscellaneous Expenditures ...................................................................................................................48

4.2 Council and Boards and Commission Travel Policy.................................................................................48 SECTION 5 – CITY COUNCIL REIMBURSEMENT POLICY FOR EXPENSES INCURRED IN THE PERFORMANCE OF THEIR OFFICIAL DUTIES .......................................................................................................................................50

5.1 Purpose ...................................................................................................................................................50

5.2 Authorized Expenses ..............................................................................................................................50

5.3 Monitoring and Reporting......................................................................................................................51 SECTION 6 - Confidentiality, Conflicts of Interest, Gifts And Favors ....................................................................51 Item 15
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3 City Council Procedures and Protocols Handbook
Introduction
The purpose of this City Council Procedures and Protocols Handbook is to review a set of rules through which the Palo Alto City Council conducts its business in a fair, equitable and effective manner.

Adoption of the Handbook is requirement of the Palo Alto Municipal Code:

Municipal Code 2.04.100 – Handbook of Procedural Rules
The Council shall adopt by resolution a handbook of procedural rules governing any aspect of the conduct of meetings and hearings for the council and its standing committees, including but not limited to agenda requirements, the order of business, rules of order, rules of evidence, closed session procedures and rules for public participation in meetings. The handbook of procedural rules shall be deemed guidelines and failure to comply with any procedural rule shall not be the basis for challenge to or invalidation of any action of the council, nor shall they be construed to create any independent remedy or right of action of any kind.

The handbook is organized in two parts:

Part I: City Council Procedures
This section explains the process through which work is done and basic rules for City Council meetings including public participation guidelines.

Part II: City Council Protocols
This section explains conduct guidance for the City Council.

If a provision of this Handbook conflicts or is inconsistent with the Charter, the Municipal Code, or State or Federal law, the Charter, Code, or State or Federal law shall govern.

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4 City Council Procedures and Protocols Handbook
PART I: CITY COUNCIL PROCEDURES
SECTION 1 – CITY COUNCIL ORGANIZATION AND STRUCTURE

1.1 Annual Organization of City Council
The Palo Alto Charter, Article III, Section 8 directs Council to elect one of its members to serve as Mayor and one as Vice-Mayor, and sets forth their duties. Palo Alto Municipal Code Section

2.04.060 provides additional detail. In addition to those duties, the Mayor is also to make appointments of Councilmembers to regional bodies / agencies that Palo Alto has a seat on as applicable or where not otherwise provided for by law.

Mayor and Vice-Mayor are elected at the first meeting in January each year. Nominations may be made by any Councilmember and do not require a second.

1.2 Council Committees
(a) Standing Council Committees
Policy
It is the policy of the Council to use standing committees in open and public meetings to study City business in greater depth than what is possible in the time allotted for Council meetings.

Purpose
These rules are intended to enhance public participation and committee meetings so that the best possible decisions can be made for Palo Alto.

General Requirements
Council standing committees shall be subject to the following procedural rules:
1) Quorum
A majority of the committee membership shall constitute a quorum. 2) Referrals
Only the Council or City Manager shall make referrals to the standing committees.

Referrals will generally be directed to only one of the standing committees.

Items may be withdrawn from the committee and taken up for consideration by the Council at any Council meeting with the consent of a majority of the Council, and subject to any applicable noticing or agenda-posting requirements. 3) Attendance by Nonmembers
As required by the Brown Act, Councilmembers who are not on a committee may attend the committee meeting but only as an observer; they may not speak or otherwise participate in the committee meeting.

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requirements will apply.
4) Function of committees
The purpose and intent of committee meetings is to expedite Council action by providing more thorough and detailed discussion and study of prospective or current Council agenda items with a full and complete airing of all sentiments and expressions of opinion on City problems by both the committee and the public. Actions of the committee shall be advisory recommendations only except as to matters delegated to the committee by Council.
5) Minutes and Report of Committee
The City Clerk shall be responsible for the preparation and distribution to the Council of the minutes of standing committee meetings. The minutes for these meetings shall be action minutes which reflect the motions made during these meetings. The minutes of each committee meeting serve as the report to the Council and should be included, as appropriate, in subsequent relevant staff reports.
6) Agenda
The presiding officer of each standing committee shall work with staff to prepare the agenda for committee meetings. Items should be scheduled as they are ready, taking into account the sequence of referral, the time required for staff research and analysis to support committee discussions, the time-sensitivity of items, and other factors as determined by the chair and City Manager.
7) Public Participation at Committees
The presiding officer shall determine the time that each speaker is allotted during general public comment and public comment on agendized items. The chair will typically set individual speaker speaking time at 3 minutes per speaker. If extended public participation is desired the chair may provide for a longer period; if there are a large number of speakers or many agenda items, speaking time may be shortened. 8) New Standing Committees
Council may establish new standing committees as needed. (b) Policy and Services Committee
The Municipal Code states that the role of the Council Policy & Services Committee is to consider and make recommendations on matters referred to it by the Council relating to parliamentary and administrative procedures and policy matters pertaining to intergovernmental relations, personnel policies, planning and zoning, traffic and parking, public work, and community and human services. (§2.04.220).
(c) Finance Committee
The Municipal Code states that the role of the Council Finance Committee is to consider and make recommendations on matters referred to it by the Council relating to finance, budget, financial audits, capital planning and debt. (§2.04.210).

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6 City Council Procedures and Protocols Handbook
(d) Council Appointed Officers (CAO) Committee
The CAO Committee meets on an as-needed schedule to address issues that Council has referred to the Committee related to Council's four direct appointees: the City Manager, City Attorney, City Clerk and City Auditor. For example, the committee may be tasked with duties related to performance evaluations, compensation, and the filling of vacancies. The CAO Committee is to make recommendations to the Council annually regarding the process for CAO evaluations and the selection of the consultant to serve as the facilitator for the CAO evaluations for the year.

The CAO Committee is also to schedule the CAO performance evaluations in partnership with staff.
(e) City Schools Liaison Committee
The City-Schools Liaison Committee is composed of two Councilmembers and two members of the Board of Education of the Palo Alto Unified School District. The committee’s purpose is to share information, collaborate, and coordinate on issues related to Palo Alto’s school-aged children and youth.
(f) Ad Hoc Committees
Policy
The Council may create Ad Hoc Committees on a limited basis where necessary to study City business in greater depth than what is possible in the time allotted for Council and Standing Committee meetings.

Purpose
These rules are intended to clarify the distinctions between Standing and Ad Hoc Committees and to set up guidelines for creation of Ad Hoc Committees.

General Requirements
Council Ad Hoc Committees shall be subject to the following procedural rules:
1) Definition of Ad Hoc Committee
An Ad Hoc Committee is a temporary advisory committee composed solely of less than a quorum of members of the Council or any Council Standing Committee. The work of an Ad Hoc Committee has a limited or single purpose. An Ad Hoc committee is not intended to be perpetual but rather to be dissolved in a finite period time, once its specific task is completed. By contrast, a Standing Committee has continuing subject matter jurisdiction over a variety of related topics.
2) Brown Act
The procedural requirements of the Brown Act apply to all committees that have either:
(a) continuing subject matter jurisdiction over a matter or group of related matters; or (b) a regular meeting schedule set by Council action. All Standing Committees are Brown Act bodies. Ad hoc committees are generally not Brown Act bodies, provided that they are temporary bodies, formed for the purpose of addressing a limited or single purpose, include only members of Council, and do not have a regular meeting schedule set by Council action. When Council creates an Ad Hoc committee that is not a Brown Act body, Council may, at its discretion, direct that the committee follow Brown Act procedures.

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3) Creation and Appointment
The Mayor or the Council may create an Ad Hoc Committee and appoint three or fewer members of the Council to serve. In contrast, only the Council and not the Mayor alone can create a Standing Committee. The Mayor makes appointments to Standing and Ad Hoc Committees. The Mayor will publicly announce any Ad Hoc Committee created by her or him and its membership and stated purpose. The Clerk shall post this information on the Council website. The City Manager shall prepare a report to Council about the anticipated time commitment required for staff to assist the Ad Hoc Committee. 4) Duration
Ad Hoc Committees are created for a finite period of time. If an Ad Hoc Committee does not complete its task by the end of the calendar year, it shall not continue unless reappointed by the new Mayor in the following year.
5) Members
Ad Hoc Committees shall consist of less than a quorum of Councilmembers only, and shall not include any other persons, including members of other legislative bodies. 6) Reporting
Ad Hoc Committees shall report their recommendations to the Council in the timeframe directed by Council. Any Councilmember may ask during ‘Councilmember Questions, Comments And Announcements’ that an updated Ad Hoc Committee report be placed on an upcoming meeting agenda.
7) Termination of Ad Hoc Committee by Majority of Council A majority of the Council may vote to terminate any Ad Hoc Committee following placement of the issue on an agenda.
8) Conclusion
A public announcement shall be made any time the Ad Hoc Committee has concluded its work and/or upon dissolution.

1.3 Respect the Work of the Council Committees
Council should respect the work of Council committees, as their purpose is to provide focused, in- depth discussion of issues to help inform and expedite Council business. If a matter is taken forward to the full Council for approval after receiving a unanimous vote at committee, the item will be placed on the Consent Calendar, unless otherwise recommended by the committee, Mayor, City Attorney or City Manager.
* * *
SECTION 2 - GENERAL PROCEDURES FOR CITY COUNCIL MEETINGS The purpose of these guidelines is to facilitate the orderly and efficient conduct of Council business. This purpose recognizes the value of establishing a community understanding of meeting procedures so that broad public participation is encouraged. This purpose also recognizes that Councilmembers must have Item 15
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8 City Council Procedures and Protocols Handbook
a common approach to the discussion and debate of City business so that meetings are both streamlined and thorough.

These are guidelines, rather than rules. The Council intends that City staff and Councilmembers will follow these guidelines. However, these guidelines should not be used in a way that leads to inefficiency, unfairness, or the promotion of form over substance.

In addition to Council-adopted guidelines, State law establishes a variety of mandatory meeting rules that the City must follow in order to ensure open government and fair process, regardless of unusual situations and consequences. (See Cal. Govt Code section 54950.)

2.1 Meeting Schedules, Agendas and Supporting Materials (a)Meeting Schedules for Regular and Special Meetings
The Council generally conducts two different kinds of meetings: regular meetings and special meetings.

The Municipal Code provides that regular Council meetings are conducted at City Hall on the first three Monday nights of each month, except during the Council’s annual summer and winter recesses, at 5:30 p.m.

The Council also schedules periodic special meetings, which are meetings on any day or time other than the regular meeting time. This may include meetings on the regularly-scheduled first three Mondays where the start time is 5 p.m. or earlier, or meetings on a fourth or fifth Monday, or meetings scheduled on any other day or time.

The Mayor or Council may call a special meeting on a minimum of 24 hours’ notice. Special meetings need not be held at City Hall, as long as the alternate location is within the City. The Council makes every effort to provide notice well in advance of 24 hours, especially when the special meeting is for the purpose of conducting a Study Session.
(b) Posting of Agendas
Under the Brown Act, meeting agendas must be posted no later than 72-hours prior to regular meetings and 24-hours prior to special meetings. It is City policy to make every effort to post the agenda on Thursday, 11 days prior to Monday meetings, whether regular or special. Agendas are posted in King Plaza by the elevators and are uploaded to the Council web page. (c) Supporting Reports and Materials
It is City policy to make every effort to provide supporting reports and materials at the time the agenda is posted. Typically, this will occur 11 days before the meeting. Materials that are not available at the time of agenda posting will be distributed as soon as feasible before the meeting. Materials that are distributed to a majority of Council will be made available to the public at the same time, as required by law. Some materials, such as presentation materials or “supplemental memoranda” (previously referred to as “at places” memoranda) may be distributed to Councilmembers and the public at the meeting. (d) Late Submittal of Correspondence or Other Information Related to Planning Applications In order to allow for adequate staff review and analysis and to ensure public access to information, all plans, correspondence, and other documents supporting planning applications being heard by the Council Item 15
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must be submitted to staff not later than noon five (5) working days prior to the release of the Council Agenda Packet. If any correspondence or other information is submitted after this deadline to Councilmembers or staff, and staff determines additional review is needed, staff will reschedule the item for a future Council meeting.

If a Councilmember receives planning application materials from a project applicant, or receives other significant material related to the application from any source, he or she shall notify the City Clerk and the City Manager as soon as possible so that all relevant material can be entered into the official record and made available to all parties and the public. At the meeting the Council may determine whether to continue or refer the item to the appropriate board and/or commission if significant changes to a project or significant new information become known.

2.2 The Mayor and Vice Mayor Should Work with Staff to Plan the Council Meetings There are three purposes to the pre-Council planning meeting: 1) to plan how the meeting will be conducted, including review of approximate time allocation of Staff Report presentations and to ensure adequate time for large complex items; 2) to identify any issues or questions that may need greater staff preparation for the meeting; and 3) to discuss future meetings. Consideration in building the agenda should be given to the potential length of the meeting and at what point items of significant public concern may be heard.

The purpose of the meeting is not to work on policy issues. Normally, only the Mayor and Vice Mayor are invited and expected to attend the pre-Council meetings with the City Manager, other CAOs, and department managers. The Mayor and Vice Mayor’s role is to represent the interest of the entire Council.

2.3 Attendance Procedures
(a) Attendance Required
Councilmembers, the City Clerk, City Attorney, and City Manager, along with any other City officers and department heads that have been requested to be present, shall take their regular stations in the Council Chambers at the start of every scheduled meeting. Councilmembers are expected to be present at the dais at all times except for necessary short breaks and other reasonable exceptions. The presiding officer will ensure that each meeting will include at least one 15-minute break. The Council expects its members to attend regularly and notify the City Clerk of any planned absences. The Council may levy fines of up to $250.00 against Councilmembers who willfully fail to attend meetings (PAMC section 2.04.050). (b) Remote Attendance Teleconferencing of Councilmembers at Council and Committee Meetings Councilmembers are strongly encouraged to attend meetings in person. State law allows Councilmembers to attend meetings remotely by teleconference by following the procedures outlined in Government Code Section 54953(b) (“Standard Remote AttendanceTeleconferencing”) or the alternative procedures outlined in Assembly Bill 2449 (introduced in 2022) (“AB 2449 Remote AttendanceAlternative Teleconferencing”). For convenience, these procedures are summarized below and are current as of the date of Handbook revision. If state law is subsequently amended, the amended terms of Sstate law will apply.

Councilmembers are encouraged to consult in advance with the City Clerk and, if needed, the City Item 15
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Attorney to ensure compliance with all required procedures. 1) Number of Remote Appearances
Remote attendance shall be permitted not more than 3 five (5) times a year per legislative body (for example, five times a year for full Council meetings and five additional times a year for each Council committee). AB 2449Alternative Teleconferencing rules still apply, which state that no more than twolimit the number of meetings that may be attended remotely during a calendar year for “just cause,” depending on the frequency of the legislative body’s regular meetings, as described below.
2) General Procedures for Appearing RemotelyAttending by Teleconference Councilmembers must follow mandatory procedures set forth in sState law. At any meeting where a Councilmember is attending remotely, the following requirements must be met:
(A) At least a quorum of the Council must participate from a singular physical location within the City.
(B) The agenda must identify and include an opportunity for the public to attend and directly address the Councilmember through a call-in option, an internet- based service option, and in-person at the location of the meeting. (C) Council may not take action if there is an unresolved disruption to the meeting broadcast or to the ability to take call-in or internet-based public comment.

If the above threshold requirements are met, the Councilmember attending remotely must ensure they follow the procedures associated with either Standard Remote Attendance Teleconferencing or AB 2449 Remote AttendanceAlternative Teleconferencing.
3) Standard Remote AttendanceTeleconferencing Procedures A Councilmember attending remotelyteleconferencing using these procedures must ensure that:
(A) The meeting agenda identifies the remote attendanceteleconference location and is posted at that location in an area that is accessible and visible 24 hours a day for at least 72 hours prior to a regular meeting and 24 hours prior to a special meeting.
(B) The remote attendanceteleconference location is open and fully accessible to the public, and fully accessible under the Americans with Disabilities Act, throughout the entire meeting. These requirements apply to private residences, hotel rooms, and similar facilities, all of which must remain fully open and accessible throughout the meeting, without requiring identification or registration.
(C) The remote attendanceteleconference technology used is open and fully accessible to all members of the public, including those with disabilities.

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(D) Members of the public who attend the meeting at the remote attendanceteleconference location have the same opportunity to address the Council from the remote teleconference location that they would if they were present in Council Chambers.
(E) The remote attendance teleconference location must not require an admission fee or any payment for attendance.
(F) If the meeting will include a closed session, the Councilmember must ensure that there is a private location available for that portion of the meeting. A private location means a closed room such that no other person can hear any portion of the closed session.

If the a Councilmember intends to follow the procedures of Standard Remote Attendance Teleconferencing but determines that any or all of these requirements cannot be met, he or she shall not participate in the meeting remotely using Standard Remote AttendanceTeleconferencing procedures.
4) Standard Remote AttendanceTeleconferencing Guidelines (A) Five days written notice in advance of the publication of the agenda must be given by the Councilmember to the City Clerk’s office about their intent to participate remotelyby teleconference; the notice must include the address at which the remote attendanceteleconferencing will occur, and the address the Council packet should be mailed to, if a hard copy is requested. (B) The Councilmember is responsible for posting the Council agenda in the remote teleconference location, or having the agenda posted by somebody at the location and confirming that posting has occurred. The City Clerk will assist, if necessary, by emailing, faxing or mailing the agenda to whatever address or fax number the Councilmember requests; however, it is the Councilmember’s responsibility to ensure that the agenda arrives and is posted. If the Councilmember will need the assistance of the City Clerk in delivery of the agenda, the fax number or address must be included in the five-day advance written notice above.
(C) The Councilmember must ensure that the location will be publicly accessible while the meeting is in progress.
(D) The Councilmember must state at the beginning of the Council meeting that the posting requirement was met at the location and that the location is publicly accessible and must describe the location.
5) AB 2449 Remote AttendanceAlternative Teleconferencing Procedures In 2022 tThe Legislature has adopted AB 2449, which amended the Brown Act to allow remote participation in certain narrow circumstances (listed below) without publishing the remote location on the meeting agenda and without providing public access from the Item 15
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remote location.

Where the requirements of AB 2449state law’s Alternative Teleconferencing procedures are met, a Councilmember is not required to follow the procedures described in Section

2.3(b)(3)(A)-(E), above.

A Councilmember may use Alternative Teleconferencing AB 2449 if the Councilmember has either “just cause,” or “emergency circumstances” that require remote participation, as defined by AB 2449state law.
(A) “Just cause” is defined as:.
i.“Just cause” is defined as:
ii.i. a childcare or caregiving need of a child, parent, grandparent, grandchild, sibling, spouse, or domestic partner that requires remote attendance, iii.ii. a contagious illness that prevents in-person attendance, iv.iii. a need related to a physical or mental disability which cannot be resolved by a request for reasonable accommodation, or
iv. travel while on the business of a state or local agency,. v. an immunocompromised child, parent, grandparent, grandchild, sibling, spouse, or domestic partner of the member that requires the member to participate remotely,
vi. a physical or family medical emergency, or
v.vii. military service obligations that result in a member being unable to attend in person because they are serving under official written orders for active duty, drill, annual training, or any other duty required as a member of the California National Guard or a United States Military Reserve organization that requires the member to be at least 50 miles outside the boundaries of the local agency. (B) Notice. A Councilmember with “just cause” to attend remotely must notify the Council or Council committee and the City Clerk at the earliest possible opportunity, including at the start of the meeting, of their need to participate remotely and provide a general description of the circumstances. (C) Emergency Circumstances.
“Emergency circumstances” is defined as a physical or family medical emergency that prevents a Councilmember from attending the Council meeting in person. i. Notification and acceptance.
a. A Councilmember attending remotely due to “emergency circumstances” must notify the Council or Council committee and the City Clerk at the earliest possible opportunity.
b. The Council or Council committee must request a general description of the circumstances relating to the Councilmember’s need to appear remotely. The description does not need to have more than 20 words, and the Councilmember does not have to disclose any personal medical information.

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c. At the earliest opportunity available to it, the Council or Council committee must, by a majority vote of its members, take action on the request to approve or disapprove it. If the request does not allow sufficient time to place it on the agenda for the meeting for which the request is made, the legislative body must take action on the request at the beginning of the meeting by majority vote.
(D) Disclosures. Councilmembers attending remotely must publicly disclose at the meeting before any action is taken whether any other individuals 18 years of age or older are present in the room at the remote location with the member and the general nature of the member’s relationship with the individual. (E) Technology. Councilmembers attending remotely shall participate using both audio and visual technology.
(F) Limits. Councilmembers may only attend meetings using Alternative Teleconferencing a limited number of times per year based on the frequency of the legislative body’s regular meetings. The limits are:
i. City Council – 5 meetings per year
ii. Finance Committee – 5 meetings per year
i.iii. Other committees – 2 meetings per year
If the Councilmember intending to follow the procedures of AB 2449 Remote Attendance Alternative Teleconferencing determines that any or all of these requirements cannot be met, he or she shall not participate in the meeting remotely using AB 2449 Remote Attendance Alternative Teleconferencing procedures.
6) AB 2449 Remote Attendance Alternative Teleconferencing Sample Scripts At the start of the meeting, the Councilmember attending remotely may use the following language to identify under which provision they are attending remotely:

Just Cause:
“I have just cause to attend this meeting remotely under AB 2449the Brown Act. I have not attended a meeting remotely due to just cause more than once this calendar year. I have attended [NUMBER] [COUNCIL/COMMITTEE] meetings remotely this calendar year. I must attend this meeting remotely because…

1. “… I must provide caregiving to [RELATION].”

2. “… a contagious illness prevents me from attending in person.”

3. “… I have a need related to a disability which could not be accommodated at this meeting.”

4. “… I am travelling while on official business of [STATE OR LOCAL AGENCY].”

5. “… my [RELATION] is immunocompromised, requiring me to participate remotely.”

6. “… a [PHYSICAL OR FAMILY] medical emergency prevents me from attending in person.”

4.7. “… I am serving under official written orders required as a member of [MILITARY Item 15
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SERVICE ORGANIZATION] that requires me to be at least 50 miles outside of Palo Alto.”
“In this room, I am accompanied by…

1. “…no one over the age of 18.”

2. “…one or more individuals over the age of 18. They are [RELATION (e.g., my spouse, coworker, medical provider)].”
Emergency Circumstances:
“Due to emergency circumstances, I request to attend this meeting remotely under AB 2449. I have attended [NUMBER] meetings remotely this calendar year. The [PHYSICAL OR FAMILY] medical emergency I am facing requires my remote attendance because [BRIEF DESCRIPTION].”
“In this room, I am accompanied by…

1. “…no one over the age of 18.”

2.1. “…one or more individuals over the age of 18. They are [RELATION (e.g., my spouse, coworker, medical provider)].”

2.4 Colleagues’ Memos
Councilmembers may bring forward a colleagues’ memo on any topic to be considered by the entire Council. A minimum of two Councilmembers are required to place such a memo on the agenda, reflective of the Council procedure requiring a motion and a second for consideration of a motion by the Council. Up to three Councilmembers may sign a colleague memo. To comply with the Brown Act, three is the maximum number Councilmembers who may discuss or sign onto a colleagues’ memo.

Prior to preparing a colleagues’ memo, Councilmembers should consult with the City Manager to determine whether the City Manager is able to address the issues as part of their operational authority and within current budgeted resources. Colleagues’ memos should include a section drafted by the City Manager that identifies any potential staffing or fiscal impacts of the contemplated action. Councilmembers shall provide a copy of the proposed memo to the City Manager and City Attorney prior to finalization. Completed Council colleagues’ memos should be provided to the City Manager, City Attorney and City Clerk with as much advance notice as possible, to provide time for staff to prepare the resource impact section and prepare the memo for placement on the agenda.

The Council will not take action on the night that a colleagues’ memo is introduced if it has any implications for staff resources or current work priorities which are not addressed in the memo.

The Council will discuss the colleagues’ memo and refer it to a committee or direct the City Manager to agendize the matter for Council action. Action may be taken immediately by the Council on colleagues’ memos where there are no resource or staffing implications, or where these implications are fully outlined in the colleagues’ memo. The Brown Act requires that the public be fully informed of the potential action by the Council when the agenda is published. In order to satisfy the Brown Act requirements, the Council should consult with the City Attorney to ensure that the proposed title to the colleagues’ memo contains all actions that the Councilmembers want completed on the night of the Council review.

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Councilmembers nearing the end of their term desiring to submit a colleagues’ memo should consider submittal timing and steps needed in order to ensure Council discussion prior to the end of their term. Staff will make best efforts to agendize such memos prior to the end of the Council term. * * *
SECTION 3 - CITY COUNCIL MEETING ORDER OF THE AGENDA
Council agendas will be prepared by the City Clerk and presented to the Council in the order described below, except as determined otherwise by the Mayor in consultation with the City Manager. In setting the agenda, the typical order of agenda items is as shown below but the ordering can be changed in the agenda-setting process if needed. The City Manager, with prior approval of the Mayor, is authorized to designate upon the agenda items that shall be taken up first or at a specific time during the course of the meeting (PAMC section 2.04.070.) The Council may take matters up out of order upon approval by a majority vote of those present:

Call to Order
Special Orders of the Day
Closed Session
Agenda Changes, Additions and Deletions
General Public Comment
Councilmember Questions, Comments and Announcements
Study Session
Consent Agenda
Items may be placed upon the consent calendar by any council-appointed officer whenever, in such officer's judgment, such items are expected to be routinely approved without discussion or debate.

Council Minutes are approved on Consent. The consent calendar shall be voted upon as one item.

City Manager Comments
Action Items
Adjournment
Items Considered After 10:30 p.m.: The Council makes every effort to end its meetings before 11 p.m.

With that goal in mind, the Council generally does not start discussion of new matters after 10:30 p.m.

Before 10 p.m. the Council will decide and announce whether it will begin consideration of any agenda items after 10:30 p.m. and, if so, which specific items will be taken up.

3.1 Call to Order
The meeting can be called to order in recognition of a holiday or special designation to bring awareness and show appreciation of that holiday or special designation. The Mayor will determine such recognitions in consultation with the Manager, and dates will primarily originate from a calendar adopted by the Council.

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3.2 Special Orders of the Day
(a)Council may acknowledge a special appreciation for individuals or groups for achievements, holidays (dates included in the annual Council-adopted calendar), etc., through the a Special Order of the Day. This can be done through:
- A certificate of recognition for individuals or groups linked to a certain achievement, event or holiday
- Information read by Councilmembers in honor of a group or individual - A proclamation or resolution presented to a group or individual - Informational presentation from a community group about their program. (b)Proclamations are issued at the discretion of the Mayor. Proclamations may be presented at a City Council meeting or issued without a formal presentation. If a presentation at City Council is requested, the Mayor, in consultation with the City Manager and City Clerk, will determine when the proclamation will be agendized. The public may submit requests via email to the City Clerk or via the City Clerk’s webpage. Councilmembers may direct proclamation requests to the Mayor.

The City Clerk’s Office publishes all proclamations on the City’s website and regularly notifies the Council of proclamations issued without presentation at a City Council meeting. (c)The City annually issues routine, non-controversial proclamations for certain recognitions based off a list reviewed by the City Council, contingent upon approval by the Mayor and Vice Mayor.

Potentially controversial proclamation will be brought to the full Council for a vote for approval. (b)(d)Council shall refrain from taking positions on matters related to foreign governments, or concerning the foreign policy of the United States, or its relationship to other countries.

Additionally, the Council shall not adopt resolutions, issue proclamations or official statements, or otherwise engage in advocacy on issues that are outside the scope of local governance.

The Council may support proclamations, resolutions, and matters directly related to Palo Alto’s Sister Cities, provided they focus on cultural, educational, commercial, or other collaborations consistent with the objectives of these partnerships.

Council may adopt positions on domestic acts of the state or federal government which affect the resources of the City, or the health, safety and welfare of the residents or workers of the City consistent with our legislative guidelines.

Statements representing the position of the Council on issues that are controversial, shall be voted upon by the Council.

3.3 Closed Sessions
Closed sessions are the only part of a Council meeting that the public cannot attend though to the public may make public comments before the start of the closed session. Council may meet in closed session only as specifically authorized by State law. The most common types of closed sessions are labor negotiations, litigation, employment issues, and real estate negotiations.

The Council will make a public report after the session where required by State or local law. (a) Closed Session Requirements
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1) Announcements Before Closed Sessions
The Mayor/City Clerk shall announce the item or items to be considered in closed session by reference to the appropriate agenda number or letter, or in an alternate form that shall be provided by the City Attorney.
2) Public Comments
Members of the public are permitted to make public comments on closed session matters. The City Clerk shall be present in the open session to record Council attendance and any statements made by the public or by the Council. 3) Vote to Go into Closed Session
The Council shall vote to go into closed session.
4) Attendance
The City Manager and City Attorney, or their designees, shall attend closed sessions unless it is necessary to excuse them. Additional staff and consultants may attend, but only to the extent that their attendance is necessary to support Council’s consideration of the item.
5) Public Reports
State and local law require the Council to make a public report after a closed session when certain kinds of actions are taken (PAMC section 2.04.030). Reports from closed sessions shall be made by the Mayor, the Vice Mayor in the Mayor's absence, or such other City representative as designated by the Council. Such designated person is the only individual authorized to make public statements concerning the closed session.

It is the policy of the Council to inform the public of action taken in closed session to the greatest extent possible. It is recognized, however, that the need for confidentiality is inherent in closed sessions and that certain matters if revealed may be a detriment to the results desired. The Council shall publicly report:
(A) any decision to appoint, employ, or dismiss a public employee and the roll call vote thereon at its next public meeting;
(B) actions related to litigation and the roll call vote on such actions, unless the report would, in the written opinion of the City Attorney for specifically stated reasons, clearly jeopardize the City’s ability to effectuate service of process on one or more unserved parties or impair the City’s ability to resolve the matter through negotiation, mediation or other form of settlement. Notwithstanding the City Attorney's written opinion, the Council may under any circumstance, by majority vote, determine that it is in the City's best interests to disclose actions taken in closed session related to litigation. The public report shall be given as soon as possible, but no later than the next regular meeting, and shall include the vote or abstention of every member present. The City Attorney’s written opinion shall be made public, along with any action taken and any vote thereon, as soon as any litigation is concluded. The City Attorney shall record any action and vote upon such forms as the City Attorney may deem desirable; Item 15
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(C) Other matters as required by law.
6) No Minutes
No minutes of closed sessions shall be kept. The City Attorney shall record the information necessary to comply with State law and Municipal Code section 2.04.030. 7) Confidentiality
No person in attendance at a closed session may disclose the substance or effect of any matter discussed during the session (PAMC section 2.04.040), except to the extent authorized by a majority vote of Council or as required by a court.

3.4 Agenda Changes, Additions, and Deletions
(a)By majority vote, Council may change the order or delete an item from the agenda. Council may not add items to the agenda except in cases of emergency as defined by State law. (b)When the Council decides to reschedule business items, the business items will generally be rescheduled as follows:
1) Items Rescheduled to a Date Uncertain
When Council reschedules an item to a date uncertain, the City Manager, Clerk and Mayor shall confer on an appropriate date to reschedule the item. 2) Items Rescheduled to a Date Certain
Council may reschedule an item to a specific future Council meeting.

3.5 General Public Comment (see Section 5 on Public Participation for more details about “General Public Comment”)

3.6 Councilmember Questions, Comments, and Announcements (including reports on Boards, Commissions, and Committees)
The purpose of this agenda item is to allow Council to briefly ask staff about matters upon which Council has taken action or given direction, make general comments as a reference to staff on factual matters of community concern, or make brief announcements in a manner consistent with Government Code section 54954.2. If more than brief statements are desired, the item shall be agendized for a future meeting in the manner otherwise provided by these Procedures, such as by the City Manager or through a Colleagues’ Memo. Major policy issues and new assignments will not be discussed or considered in this item. To the extent possible, Council will confer with staff before raising matters under this agenda item. Councilmember questions, comments, and announcements are limited to 3 minutes per Councilmember. This agenda item will generally last up to 15 minutes and the public may not comment.

3.7 Study Sessions
Study Sessions are agenda items during which the Council receives information about City business in an informal setting. Study sessions are intended to be discussion items only. The Decorum rules Item 15
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still apply to the behavior of the Council and public.
(a) Study Session Procedures
1) Time
Special study sessions will be held as needed.
2) Topics and Process
Study sessions are intended to be conducive to in-depth factual presentations by City staff and detailed questioning and brainstorming by Council on issues of significant interest.

The Council may discuss the material freely without following formal rules of parliamentary procedure, and the presiding officer shall have discretion to determine the appropriate process for conducting the study session, including when public comment will be heard.
3) Public Participation
Members of the public are allowed to make public comments on study session matters at the time directed by the presiding officer. The general rules of decorum apply. 4) No Action Taken
Staff may be directed to bring matters back for Council consideration at future meetings, as no action can be taken.

3.8 Consent Agenda
The Consent Agenda is the section where items not anticipated to require discussion can be presented and acted upon efficiently by Council. This generally includes administrative items; implementation of policies and programs previously approved by Council, including contracts; and other routine or non-controversial items. The Mayor and City Manager should be sensitive to high dollar value contracts and consider placing those items in the action agenda section. The consent section may include:
(a) Ordinances and Resolutions
The following ordinances and resolutions may appear on a consent calendar:
1) Second Reading (passage and adoption) of Ordinances. 2) Resolutions that are ceremonial in nature.
3) Ordinances or resolutions that implement a prior Council policy direction in the manner contemplated by the Council's previous actions, in the Adopted Budget (including the Capital Improvement Program and especially in the department key plans), the Council Priorities, and other similar sources.
4) Budget amendments that accept funding such as grants or gifts, provided Council has previously approved the activity or program.
5) Resolutions approving funding applications, such as grants or loans, provided that the program or activity has been previously approved by Council. 6) Clerical amendments to local laws.

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7) Conforming amendments to local laws that are required by State law, except items of significant public interest.
(b) Administrative Matters Including Contracts, Appointments, Approval of Applications, and Any Other Matter
An administrative matter may be placed on the consent calendar if it is:
1) An action that is merely the administrative execution of previous Council direction.

The Council direction and vote will be quoted in the Staff Report accompanying the item.
2) Contracts for which the subject or scope of work has been previously reviewed by the Council.
3) A contract for goods, general services, professional services, public works projects, dark fiber licensing contracts or wholesale commodities, purchases, as outlined in the Purchasing Ordinance, provided such contracts represent the customary and usual business of the department as included in the Adopted Budget. Examples include routine maintenance contracts, annual audit agreements software and hardware support agreements, janitorial services, and copier agreements or postage machine agreements. 4) Designation of heritage trees.
5) Designation of historic building at the request of the property owner if there are no unusual policy ramifications.
6) Approval of funding applications, such as grants or loans, provided that Council has previously approved the general program or activity. 7) Items identified in the Municipal Code for placement on Consent. This includes, for example, certain appeals of determinations of the Director of Planning and Development Services.
8) Approval of minutes.
9) Referral of an item to a Standing Committee, Committee, Board, Commission, or Council Appointed Officer.
10) Other similar matters as determined by the City Manager, in consultation with the Mayor. (c) Items Unanimously Recommended for Approval by a Council Committee or Council-Appointed Board or Commission, Unless Otherwise Recommended by the Committee/Commission, Mayor, City Attorney or City Manager
Items recommended unanimously for approval by Council committees and Council-appointed boards and commissions are generally placed on Consent, except as otherwise recommended by the Committee, Board or Commission, or the Mayor, City Manager or City Attorney, or as required by law.
(d) Public Comment on Consent Agenda
Members of the public wishing to speak to items on the Consent Calendar shall be permitted to speak prior to Councilmember requests to remove an item or the vote to adopt the Consent Calendar. Members of the public who wish to speak to Consent Agenda items will receive the time limit set by the presiding officer (a total of 3 minutes or less) to speak to all Consent Agenda Item 15
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items of interest regardless of the number of items of interest. (e) No Discussion or Debate; Voting; Recusals; Speaking to a No Vote There shall not be discussion or debate on any item on the Consent agenda. A Councilmember who needs to recuse themself from a Consent item shall inform the Mayor and make any public disclosure that is required. The Clerk shall record the recusal on the item.

Any Councilmember may request that his or her vote be recorded as a "no" on any item or items on the Consent agenda. Any Consent item not receiving the number of “yes” votes required for the item is not approved.

Councilmembers may explain their "no" votes at the end of the Consent Agenda, with 3- minutes permitted for non-appeal items and 5 minutes for appeal items for each Councilmember. When a Councilmember votes “no” on multiple Consent agenda items, the Councilmember has up to 3 minutes to speak on any and all of the “no” votes. Councilmembers may also submit statements in writing to the City Clerk before action is taken. The City Clerk shall preserve and make available such written statements in a manner consistent with the Brown Act and shall assure that the minutes of the meeting make reference to the existence and location of such written statements.
(f) Council Requests to Remove Items from Consent Agenda Three Councilmembers may request that an item be removed from the Consent Agenda except where otherwise required by the Municipal Code. Under the Municipal Code, four votes are required to remove a second reading of an ordinance from the Consent Agenda.

If feasible, a removed item will be heard as the first action item of the same meeting for a brief discussion, limited to 10 minutes. The removed item will be agendized for a subsequent meeting if it is not resolved within that timeframe. Removed items will be heard either later in the meeting or agendized for a subsequent meeting, depending upon the number of speakers, the anticipated length of the items that have been officially scheduled for discussion on a particular evening, the availability of staff required to support the discussion, and legally- required noticing procedures. The Mayor, in consultation with the City Manager, will decide when any removed items will be heard.

Councilmembers who intend to request to remove an item should strive to inform the City Manager’s office no later than noon the Sunday before the meeting. This is so that the Manager can assess the operational impacts of rescheduling a removed item to a later agenda and, if appropriate, can arrange for appropriate staff to attend Council to support consideration of the item.

3.9 City Manager’s Comments

3.10 Action Items

3.11 Adjournment
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* * *
SECTION 4 - PROCEDURES AT CITY COUNCIL MEETINGS

4.1 Council Motion and Voting Processes throughout the Agenda (exist. Procedures 2.4 U and V) (a) Motions, Debate & Voting
Policy and Summary of Rules
It is the policy of the Council to follow simplified rules of parliamentary procedure for motions, debate and voting as an alternative procedure to Robert’s Rules of Order. These rules focus on the types of motions the Council can make and when those motions are properly used. See the Summary Table below.

Purpose
The purpose of these rules to facilitate orderly and thorough discussion and debate of Council business in order to create open respectful discussion and results that serve the public interest. (b) Motions
A motion is a formal proposal by a Councilmember asking that the Council take a specified action.

A motion must receive a second before the Council can consider a matter. Motions may be provided to the City Clerk in advance of the Council meeting so that the Clerk can efficiently post the motion on the screen for the convenience of the community and Councilmembers.

There are two types of motions; these are the “main” motion and any secondary motions.

Only one main motion can be considered at a time. The main motion is the first motion to be made and receive a second. A secondary motion is described below which can be considered while a main motion is pending.

4.2 Motion Procedures
(a) Main Motion Procedures
1) Get the Floor
A Councilmember should seek permission of the presiding officer before making a motion. 2) State the Motion
A motion is made by a Councilmember (the “maker”) stating his or her proposal. Longer proposals can be written.
3) Second Required
Any other Councilmember (including the presiding officer) who supports the proposal (or who simply wishes it to be considered) may “second” the motion without first being recognized.
4) Motion Transcribed
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read it.
5) Lack of a Second
If there is no second stated immediately, the presiding officer should ask whether there is a second. If no Councilmember seconds the motion the matter will not be considered. 6) Discussion
The maker shall be the first Councilmember recognized to speak on the motion if it receives a second. The seconder shall be the second Councilmember to speak on the motion.

Generally Councilmembers will speak only once with respect to a motion. If the presiding officer or Council permits any Councilmember to speak more than once on a motion, all Councilmembers shall receive the same privilege.
7) Secondary Motions
Secondary motions may be made by a Councilmember upon getting the floor. 8) Action
After discussion is complete the Council will vote on the motion under consideration. (b) Secondary Motion Procedures
Only one main motion may be entertained by Council at a time. The Council recognizes the following secondary motions which may be considered while a main motion is pending. These motions shall have precedence in the order listed below. This means that a secondary motion that is higher on the list will be considered ahead of a pending secondary motion that is lower on the list:

The purpose of the allowed secondary motions is summarized in the following text and table. 1) Fix the time to which to adjourn
This motion sets a time for continuation of the meeting. It requires a second, is amendable and is debatable only as to the time to which the meeting is adjourned. 2) Adjourn
This motion ends the meeting or adjourns it to another time. It requires a second and is not debatable except to set the time to which the meeting is adjourned, if applicable. A motion to adjourn shall be in order at any time, except as follows: (a) when repeated without intervening business or discussion; (b) when made as an interruption of a member while speaking; (c) when the previous question has been ordered; and (d) while a vote is being taken.
3) Take a recess
This motion interrupts the meeting temporarily. It is amendable but is not debatable. 4) Raise a question of personal privilege
This motion allows a Councilmember to address the Council on a question of personal privilege and shall be limited to cases in which the Councilmember's integrity, character or motives are questioned or when the welfare of the Council is concerned. The maker of Item 15
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the motion may interrupt another speaker if the presiding officer recognizes the "privilege." The motion does not require a second, is not amendable and is not debatable. 5) Lay on the table
This motion is used to interrupt business for more urgent business. A motion to lay on the table requires a second, is not amendable and is not debatable. It shall preclude all amendments or debate of the subject under consideration. If the motion prevails, and the subject is tabled, the matter must be reagendized in the future if further consideration is to be given to the matter.
6) Previous question
This motion “calls the question” by closing debate on the pending motion. A motion for previous question requires a second, is not debatable and is not amendable. It applies to all previous motions on the subject unless otherwise specified by the maker of the motion. If motion for previous question fails, debate is reopened; if motion for previous question passes, then vote on the pending motion. A motion for previous question requires a two- thirds vote of those Councilmembers present and voting. 7) Limit or extend debate
This motion limits or extends the time for the Council or any Councilmember to debate a motion. It requires a second, is amendable and is not debatable. The motion requires a two-thirds vote of those Councilmembers present and voting. 8) Continue to a certain time
This motion continues a matter to another, specified time. It requires a second, is amendable and is debatable as to propriety of postponement and time set. 9) Refer to a city agency, body, committee, board, commission or officer This motion sends a subject to another city agency, body, committee, board, commission or officer for further study and report back to Council, at which time subject is fully debated. It requires a second, is amendable, and is debatable only as to the propriety of referring.

The substance of the subject being referred shall not be discussed at the time the motion to refer is made.
10) Amend or substitute
A motion to amend retains the original motion and modifies it in some way. A substitute motion deletes the original motion and replaces it with a different motion. Both require a second, are amendable, and are debatable only when the motion to which they appy is debatable. A motion to amend an amendment is in order, but one to amend an amendment to an amendment is not. An amendment modifying a motion is in order but an amendment raising an independent question or one that is not germane to the main motion shall not be in order. Amendments take precedence over the main motion and the motion to postpone indefinitely.

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(c) Motion Process Reference Chart
Motion Description 2nd
Required
Debatable Amendable 2/3 Vote
Fix the time to
which to adjourn Sets a next date and time for
continuation of the meeting
YES Only as to time to which
the meeting is adjourned YES NO
Adjourn
Sets time to adjourn. Not in order if (a)
repeated without intervening business
(b) made as an interruption of a
member while speaking; (c) the
previous question has been ordered;
and (d) while a vote is being taken
YES
Only to set the time to
which the meeting is
adjourned NO
NO
Take a recess Purpose is to interrupt the meeting YES NO YES NO Raise a question of
privilege
Allows member to address Council on a
question of personal privilege limited to
Council welfare or cases where a
member’s personal integrity, character,
or motives are questioned.

NO NO NO NO
Lay on the table Interrupts business for more urgent
business

YES NO NO NO
Previous question
(close debate or
“call the question”)
Closes debate on pending motion YES NO NO YES
Limit or extend
limits of debate Purpose is to limit or extend debate YES NO YES YES Motion to continue
to a certain time Continues the matter to another,
specified time

YES YES YES NO
Refer to committee
Sends subject to another city agency,
body, committee, board, commission or
officer for further study and report back
to council, at which time subject is fully
debated
YES
Only as to propriety of
referring, not substance
of referral
YES
NO
Amend or substitute
Modifies (or reverses course of)
proposed action. Cannot raise
independent question. Can amend an
amendment, but no further
YES Only if underlying motion is
debatable YES
NO
Motion to
Reconsider
Motion that can be made only during the
meeting or adjourned meeting in which
the action was taken

YES YES NO NO
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4.3 Voting and Debate of Agenda Items
(a) Presiding officer to review motion
The presiding officer shall assure that all motions are clearly stated before allowing debate to begin.

The presiding officer and the maker of the motion should work with the City Clerk to clarify the motion before allowing debate to begin. The presiding officer may review the motion prior to voting. (b) Presiding officer may debate and vote
The presiding officer may move, second and debate from the chair, subject only to such limitations of debate as are by these rules imposed on all Councilmembers. The presiding officer shall not be deprived of any of the rights and privileges of a Councilmember. (c) Division of question
If the question contains two or more divisible propositions, each of which is capable of standing as a complete proposition if the others are removed, the presiding officer may, and upon request of a Councilmember shall, divide the same. The presiding officer's determination shall be appealable by any Councilmember.
(d) Withdrawal of motion
A motion may only be withdrawn by the maker with the consent of the Councilmember seconding it.
(e) Change of vote
Councilmembers may change their votes before the next item on the agenda is called. (f) Voting
On the passage of every motion, the vote shall be taken by voice or roll call or electronic voting device and entered in full upon the record, except where state law requires a roll call vote (g) Failure to vote
It is the responsibility of every Councilmember to vote unless the member is recused. No Councilmember can be compelled to vote.
(h) Abstaining from vote
Councilmembers should only abstain if they are not sufficiently informed about an item, e.g., when there was a prior meeting on the topic and they were unable to view the prior meeting before the current meeting. In the event of an abstention, or silence during a vote, the abstainer in effect, "consents" that a majority of the quorum of the Councilmembers present may act for him or her.
(i) Not participating
A Councilmember who is recused from an item due to a conflict of interest, common law bias, or other legal prohibition shall make disclosures required by law, leave the dais if required, and not participate in any way in the discussion or determination of the item. A Councilmember may otherwise disqualify themself to avoid an appearance of impropriety.

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(j) Tie votes
Tie votes may be reconsidered during the time permitted by these rules on motion by any member of the Council voting yes or no during the original vote. Before a motion is made on the next item on the agenda, any member of the Council may make a motion to continue the matter to another date. To the extent allowed by law, it is the Council’s intention that any continuance hereunder shall suspend the running of any time in which action of the Council is required by law.

Nothing herein shall be construed to prevent any Councilmember from recommending the agendizing of a matter that resulted in a tie vote for a subsequent meeting. (k) Motion to reconsider
A motion to reconsider any action taken by the Council may be made only during the meeting or adjourned meeting when the action was taken. A motion to reconsider requires a second, is debatable and is not amendable. The motion must be made by one of the prevailing side of an issue but may be seconded by any Councilmember. A motion to reconsider may be made at any time and shall have precedence over all other motions, or while a Councilmember has the floor, providing that no vested rights are impaired. The purpose of reconsideration is to bring back the matter for review. If a motion to reconsider fails, it may not itself be reconsidered.

Reconsideration may be moved only once on the same motion. However, a Councilmember may make a motion to rescind such action at a subsequent meeting of the Council, provided an appropriate item is on the published agenda.
(l) Appeal from the decision of presiding officer
When the rules are silent, the presiding officer shall decide all questions of order, subject to appeal by a Councilmember. When in doubt, the presiding officer may submit the question to the Council, in which case a majority vote shall prevail. Any decision or ruling of the presiding officer may be appealed by request of any member. The presiding officer shall call for a roll call or electronic voting device vote to determine if the presiding officer's ruling shall be upheld. If said vote passes or results in a tie vote, the presiding officer's ruling shall stand. If said vote fails, the decision or ruling of the presiding officer is reversed. (m) Getting the floor; improper references to be avoided Every Councilmember desiring to speak shall address the presiding officer and, upon recognition by the presiding officer, every Councilmember shall be confined to the question under debate, avoiding all indecorous language and personal attacks.
(n) Interruptions
Except for being called to order, a Councilmember once recognized, shall not be interrupted when speaking, except as otherwise provided for in these rules. A Councilmember called to order while speaking shall cease speaking until the question or order is determined, and, if in order, said Councilmember shall be permitted to proceed.
(o) Councilmember Speaking Time
The presiding officer shall give each Councilmember up to five (5) minutes to speak in each round of discussion during discussions on Council items where discussion takes place. The Council shall be guided by the speaking times set by the presiding officer and shall conclude comments at the direction of the presiding officer. The presiding officer shall endeavor to treat all members equitably.

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4.4 Quasi-Judicial Matters
(a) Quasi-Judicial Matters
It is the policy of the Council to assure that the due process rights of all persons are protected during City hearings. A “quasi-judicial” hearing is a hearing that requires a higher level of procedural due process because of the potential impact on life, liberty or property. Usually, quasi-judicial hearings involve consideration of an application to develop real property. The City, including Council and associated Boards and Commissions, reaches a determination by applying standards and requirements in existing law to the facts and evidence submitted in the hearing.

Findings must be stated to explain the evidentiary basis for Council’s final decision.

Purpose
These rules are intended to assure that Council decision making on quasi-judicial matters is based upon facts and evidence known to all parties and to support the role of Boards and Commissions in making independent recommendations to Council.

General Requirements
1) Quasi-Judicial Proceedings Defined
Quasi-judicial proceedings subject to these procedural rules include hearings involving the following matters:
(A) Conditional Use Permits
(B) Variances
(C) Home Improvement Exceptions
(D) Design Enhancement Exceptions
(E) Subdivisions, other than final map approvals
(F) Architectural Review
(G) Other Matters as Determined by the City Attorney
2) Restrictions on Council Communications Outside of Quasi-Judicial Hearings It is the policy of the Council to discourage the gathering and submission of information by Councilmembers outside of any noticed public meeting, prior to final recommendations by the Architectural Review Board or Planning & Transportation Commission. The following procedural guidelines are intended to implement this policy but shall not be construed to create any remedy or right of action.
3) Identification of Quasi-Judicial Matters
The City Attorney, in conjunction with the City Clerk and City Manager, will identify agenda items involving quasi-judicial matters on both the tentative and regular Council agendas.

This identification is intended to inform the Council, interested parties, and the public that this policy will apply to the matter.

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4) Council to Track Contacts
Councilmembers should track contacts with any person or entity pertaining to quasi-judicial matters. Contacts include conversations, meetings, site visits, mailings, or presentations during which substantial factual information about the item is gathered by or submitted to the Councilmember.
5) Disclosure
When a quasi-judicial matter is agendized at Council, Councilmembers will disclose on the record any contacts they have had outside of a noticed meeting, identify any new or different information they have received, and note information that may influence their preliminary views or opinions about the item. Disclosures may be oral or written and should explain the substance of the contact so that the project applicant, other Councilmembers, interested parties, and the public will have an opportunity to learn of the factors influencing the Council's decision and have an opportunity to controvert or rebut any such factor during the hearing. Disclosure alone will not be deemed sufficient basis for a request to continue the item. A contact or the disclosure of a contact shall not be deemed grounds for disqualification of a Councilmember from participation in a quasi- judicial matter unless the Councilmember, in consultation with the City Attorney, determines that the nature of the contact is such that it is not possible for the Councilmember to reach an impartial decision on the item. 6) No Contacts after Hearings
Following closure of a quasi-judicial hearing, and prior to a final decision, Councilmembers will refrain from any contacts pertaining to the item, other than clarifying questions directed to City staff.
7) Written Findings Required
On any matter for which state law or City ordinance requires the preparation of written findings, the staff report and other materials submitted on the matter will contain findings proposed for adoption by the Council. Any motion directly or impliedly rejecting the proposed findings must include a statement of alternative or modified findings or a direction that the matter under consideration be continued for a reasonable period of time in order for staff to prepare a new set of proposed findings consistent with the evidence which has been presented and the decision which is anticipated. 8) Rules of Evidence
Council hearings need not be conducted according to formal rules of evidence. Any relevant evidence may be considered if it is the sort of evidence upon which responsible persons rely in the conduct of serious affairs. The presiding officer may exclude irrelevant or redundant testimony and may make such other rulings as may be necessary for the orderly conduct of the proceedings while ensuring basic fairness and full consideration of the issues involved. Evidentiary objections shall be deemed waived unless made in a timely fashion before the Council.

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9) Councilmembers Who are Absent During Part of a Hearing A Councilmember who is absent from any portion of a hearing conducted by the Council may vote on the matter provided that he or she has watched the video record of the entire portion of the hearing from which he or she was absent and if she or he has examined all of the exhibits presented during the portion of the hearing from which he or she was absent. Councilmembers who were absent should state for the record that they have reviewed the proceedings and materials.
(b) Presenting at Quasi-Judicial Hearings
In the case of a quasi-judicial hearing, single applicants and appellants shall be given 10 minutes for their opening presentation and 3 minutes for rebuttal before the hearing is closed. In the case of a quasi-judicial hearing for which there are two or more appellants, the time allowed for presentation and rebuttal shall be divided among all appellants, and the total time allowed for all appellants shall be a total of twenty minutes for the opening presentation and six minutes for rebuttal before the hearing is closed; however, each individual appellant shall be given a minimum of 5 minutes for presentation and 3 minutes for rebuttal. In the event a request is made and the need for additional time is clearly established, the Presiding Officer shall independently, or may upon advice of the City Attorney, grant sufficient additional time to allow an adequate presentation by the applicant or appellant.
(c) Submittal of Materials Directly to Council
If Councilmembers receive materials related to a quasi-judicial agenda item they should notify the City Clerk and the City Manager as soon as possible so that the materials can be placed in the official record and distributed to all Councilmembers, parties to the proceeding, staff and the public.
* * *
SECTION 5 - HOW THE PUBLIC ENGAGES WITH THE CITY COUNCIL

5.1 Public Participation During City Council Meetings
Overview
The Council welcomes members of the public to participate in meetings through public comment opportunities. It is the policy of the Council to assure that members of the public have the opportunity to speak to any regular or special meeting agenda item before final action. These rules are intended to enhance public participation and Council debate so that the best possible decisions can be made for Palo Alto. Palo Alto has a long and proud tradition of open government and civil, intelligent public discourse.

Open government meetings must allow everyone to be heard without fear of cheers or jeers. For these reasons, the Council takes these rules seriously. Disruptive or unruly behavior in violation of the law can result in removal from the Council meeting and/or arrest and prosecution.

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(a) Access to Meetings
1) In-Person and Remote Participation
Council meetings are available in person in the Council Chambers and through an online meeting platform. Members of the public are welcome to attend the meeting in person or to join the online meeting platform.
2) Translators
Speakers may bring a translator as needed and will be allotted additional time, as appropriate.
3) ADA Access
Palo Alto makes every reasonable effort to accommodate the needs of the disabled consistent with law. Any provision of these rules may be modified if needed to provide reasonable accommodation. Persons needing assistance should contact: the City Clerk, City of Palo Alto, 650- 329-2571 (voice) or email at
[email protected]@cityofpaloalto.org. 4) The Council does not allow members of the public to activate their personal video during their public comments. The Council also does not offer remote participation during the General Public Comment (on items not on the agenda) section during Council meetings. (b) Summary of Rules for Public Participation
Every regular Council agenda has two different kinds of opportunities for the public to speak.

The first is during General Public Comment. The second is during the public comment or public hearing portion of each agenda item.
1) General Public Comment
This part of the meeting is provided so that the public can speak to any subject that is in the Council’s jurisdiction, when there is no item listed on the agenda on that topic. Per meeting, the Council limits the time for General Public Comment to up to 30 minutes initially and allows the presiding officer to move additional General Public Comment to the end of the meeting agenda. State law does not permit the Council to act on or discuss an item raised at that meeting in General Public Comment. Councilmembers shall not enter into debate with speakers, but Councilmembers may ask brief clarifying questions and may ask City staff to follow up on any concerns raised. Remote participation will not be available during the General Public Comment section of the agenda. 2) Public comment or public hearing portion of each agenda Item The Brown Act requires the opportunity for public comment on all listed agenda items, except ceremonial items, procedural items (Agenda Changes and Deletions) and brief announcements (City Manager Comments and Councilmember Questions, Comments and Announcements). Public comments or testimony must be related to the matter under consideration.

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(c) Time Limits
1) Individual Speakers
The presiding officer may announce the time that each speaker may use. The Council generally allows 3 minutes per speaker, but a shorter time may be designated when there are many speakers, numerous items on the agenda, or items anticipated to be lengthy. For example, if there are fewer than 10 speakers, the presiding officer may allow speakers 3 minutes to speak. Or if there are more than 10 speakers, then the presiding officer may choose to reduce the time for each speaker.
2) Spokesperson for a Group
When a group of people wishes to address the Council on the same subject matter, they may designate a spokesperson to address the Council. Spokespersons are subject to the same time limits as other speakers, except that spokespersons who are representing a group of five or more people who have requested to speak and are verified as present in the Council Chambers or online will be allowed 10 minutes and will, to the extent practical, be called upon ahead of individual speakers. If the presiding officer reduces the speaking time for individual speakers, the total speaking time for a spokesperson will also be reduced as determined by the presiding officer.
3) Public Comment on Consent Agenda (repeat of Section 3.8d) Members of the public wishing to speak to items on the Consent Calendar shall be permitted to speak prior to Councilmember requests to remove an item or the vote to adopt the Consent Calendar. Members of the public who wish to speak to Consent Agenda items will receive the time limit set by the presiding officer (a total of 3 minutes or less) to speak to all Consent Agenda items of interest regardless of the number of items of interest.
(d) Gaining Permission to Speak
Any person who wants to make a spoken public comment on an item on the Council agenda can do so if they are attending either in person or virtually. If attending in person, members of the public should fill out a speaker card and hand it in to the City Clerk prior to the end of the staff presentation. Members of the public participating virtually should use the “raise hand” function in the online meeting platform, or if participating via phone, hit *9 to notify the Clerk that they wish to speak. The Clerk will provide the names of the speakers to the Mayor or Vice Mayor so that the speakers can be identified and organized in an orderly way.

The presiding officer will endeavor to identify in advance the time when public comment cards will no longer be accepted.
(e) Public Decorum During Meeting
The presiding officer at Council meetings (usually the Mayor or Vice-Mayor) is authorized and required to “preserve strict order and decorum.” (PAMC section 2.04.080(b).) This is important in order to assure a fair opportunity for everyone to participate in an open and civil setting. 1) No person, other than a Councilmember and the person having the floor, shall be permitted to speak without the permission of the presiding officer.

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2) All remarks should be addressed to the Council as a body and not to any individual member or staff person.
3) No person, besides staff or the Council, shall enter the staff area of the Council dais without the permission of the presiding officer or appropriate Council Appointed Officer.
4) The Palo Alto Municipal Code makes it unlawful for any person to: (1) Disrupt the conduct of a meeting; (2) Make threats against any person or against public order and security while in the Council Chambers; (3) Use the Council Chambers during meetings for any purpose other than participation in or observation of Council Meetings.

Any Councilmember may appeal the presiding officer’s decision on a decorum violation to the full Council. Decorum violations are a misdemeanor and may lead to a person being removed from the Council meeting. (PAMC sections 2.04.120, 2.04.150.) (f) Record of Speakers
1) Persons wishing to address the Council within the meeting room, shall use the microphone provided for the public. All public speakers, whether in person or virtual participants shall speak in a recordable tone, either personally or with assistance, if necessary.
2) Speakers are requested to state their name but cannot be compelled to do so as a condition of addressing the Council.
(g) End of Public Comment After a Council Motion
Following the time for public input and once the matter is returned to the Council no person shall address the Council without first securing the permission of the presiding officer to do so, subject to approval of the City Attorney with respect to any hearing required by law. * * *
SECTION 6 - CITY COUNCIL QUESTIONS ON AGENDA-RELATED ITEMS In order to facilitate open government, all Councilmembers should make decisions with the same information from Staff on agendized or soon-to-be agendized items (i.e., items on the tentative agenda or in a Council Committee). The Council adopted protocols provide a framework for the policy on e-mail communications between Councilmembers and staff on agenda-related items, including the following:

6.1 Submit Questions on Council Agenda Items Ahead of the Meeting In order to focus the Council meetings on consideration of policy issues and to maintain an open forum for public discussion, questions which focus on the policy aspects of agenda items should be discussed at the Council meeting rather than in one-on-one communications with staff prior to the meetings. Any clarifications or technical questions that can be readily answered can be handled before the meeting. Councilmembers are encouraged to submit their questions on agenda items to Item 15
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the City Manager or other appropriate Council Appointed Officer by 5:00 p.m. the Wednesday prior to the meeting so staff can be prepared to respond before or at the Council meeting. If a staff report is incomplete by 5:00 p.m. Thursday, there will be an extension to submit Council questions until 5:00
p.m. Friday. Councilmembers are strongly discouraged from asking questions already addressed in the staff report.

6.2 City Council emails for Agenda-Related Items Procedure (a) Councilmembers should direct any questions on staff reports and agenda items only to the City Manager or designee. Questions on reports from the City Auditor, City Attorney, or City Clerk should be directed to the appropriate Council Appointed Officer. (b) Councilmembers should submit questions on agenda items no later than 5 p.m. on the Wednesday prior to the Council meeting at which the item will be discussed. Staff will make best reasonable efforts to post written responses to timely-submitted questions by Thursday 5 p.m.

Any questions received after 5 p.m. on the Wednesday before the meeting may be responded to via e-mail, or alternatively, will be responded to at the Council meeting. (c) Staff will not engage in “dialogues” with individual Councilmembers regarding questions; however, follow-up questions to initial questions will be responded to at the Council meeting. (d) Staff will give highest priority to responding prior to the Council meeting via e-mail only on items on the Consent Agenda. Questions which address the policy aspects of the item on the Council agenda will not be responded to prior to the meeting, although Staff welcomes such questions in advance of the meeting in order to prepare for the Council and public discussion. Technical and clarifying questions on non-Consent Calendar items will be responded to as time permits. (e) If the staff will be responding to a Councilmember’s Consent Agenda question at the meeting rather responding to the question via e-mail, Staff will inform the Councilmember as early as possible after receipt of the question(s).
(f) Questions and all staff-prepared responses will be forwarded to all Councilmembers as well as posted online for public review of Council agenda questions and staff responses. Staff will include the name of the Councilmember posing the questions in the “subject” field of the e-mail response.
(g) Copies of all Councilmember agenda questions and staff responses will be emailed to the Council and posted publicly on the meeting agenda. If staff responses are not released until the meeting date, they will be provided in printed form at the dais. * * *
SECTION 7 – COUNCIL VALUES AND ANNUAL COUNCIL PRIORITIES Item 15
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(a) Council Values
In November 2022, the Council adopted a set of values as described here:

The Palo Alto City Council holds these values to help guide decisions that:
1) Balance revenues and expenses, now and in the future. 2) Are environmentally sustainable.
3) Integrate equity into our decisions, considering how decisions affect people differently based on their identity or circumstances.
4) Make decisions that create a healthy, safe and welcoming community for all. 5) Safeguard public trust through transparent practices and open communication. 6) Embrace innovation.
(b) Annual Council Priorities
Priorities Background and Definition
The Council adopted its first Council priorities in 1986. Each year the Council reviews its priorities at its Annual Council Retreat. On October 1, 2012 the Council formally adopted the definition of a Council priority, and the Council’s process and guidelines for selection of priorities.

There is a goal of no more than three to four priorities per year and priorities generally have a two- to three-year time limit. Council can identify two to three specific objectives within a priority.

A Council priority is defined as a topic that will receive particular, unusual and significant attention during the year. This varies from a Council value which is defined as an enduring goal and intention to guide the work of the Council. The values (shared above) allow the Council to maintain these enduring intentions while also selecting annual priorities that reflect shorter- term projects and goals.

Purpose
The establishment of Council priorities will assist the Council and staff to better allot and utilize time for discussion and decision making.

Process
In advance of the annual Council Retreat, staff will solicit input from the Council on the priorities to be reviewed and considered for the following year.
1) Councilmembers may submit up to three priorities.
2) Priorities should be submitted no later than December 1. 3) As applicable, the City Manager will contact newly elected officials for their input by December 1.
4) The City Manager and the City Clerk will solicit for the public to share proposed priorities prior to the Council retreat. The Policy and Services Committee shall recommend to the Council which suggestions if any shall be considered at the Council retreat.

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5) Staff will collect and organize the recommended priorities into a list for Council consideration and provide to Council in the packet for the Council retreat.
6) If needed, the Policy and Services Committee, each year at its December meeting, shall make recommendations about the process that will be used at the Annual Retreat paying particular attention to the number of priorities suggested by Councilmembers. The recommended process is to be forwarded to Council for adoption in advance of the Council retreat.
* * *
SECTION 8 - PROCEDURES AND PROTOCOLS REVIEW AND ENFORCEMENT

8.1. Review and Update of the Handbook
Every odd year, the Policy and Services Committee shall initiate a review and update of the Procedures and Protocols Handbook and may make recommendations to Council. Council will review the Handbook and the recommendations of Policy and Services and approve updates as appropriate.

The Council will not politicize these procedural issues.

8.2. Commitment to Follow the Procedures and Protocols Handbook Councilmembers have the primary responsibility to assure that these procedures and protocols are understood and followed, so that the public can continue to have full confidence in the integrity of government. As an expression of the standards of conduct expected by the Council for Councilmembers, the procedures and protocols are intended to be self-enforcing. They are most effective when members are thoroughly familiar with them and embrace their provisions. For this reason, Councilmembers entering office shall sign a statement affirming they have read and understood the Council procedures and protocols.

8.3 Procedures for Enforcement
When a concern arises regarding a Councilmember’s conduct, the concerned Councilmember or members are encouraged, where possible, to raise and attempt to resolve the concern at the lowest possible level, such as through one-on-one direct conversations (consistent with the Brown Act) or through the Mayor.

Under circumstances where Councilmembers believe that actions by another Councilmember are inconsistent with federal, state or local law, this Handbook, or any other document adopted by the Council, and that those actions require formal review and potential Council response, a public discussion and potential disciplinary action are available steps for review and enforcement. The following enforcement procedures are intended for serious or ongoing concerns that are not amenable to resolution through informal means.
(a) Purpose. This policy provides the mechanism by which the Council may adopt a resolution of censure or take other disciplinary action expressing the Council's disapproval of the conduct of a Councilmember if the Council finds, subject to the procedures set forth herein, that a Councilmember's conduct violates federal, state or local law, this Handbook, or any other Item 15
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document adopted by the Council.
(b) Types of Disciplinary Actions. This section refers to the following types of disciplinary actions:
(1) Admonition. An admonition is a warning or reminder. Council may direct an admonition to any or all members of the Council, reminding them that a particular type of behavior is in violation of law or City policy, and that if it occurs or recurs, could make a member subject to a reprimand or censure. An admonition does not necessarily require an investigation or separate hearings to determine whether an allegation is true. However, while an admonition may be issued by the Council prior to a formal investigation or any findings of fact regarding allegations, a significant factual basis should exist before issuing an admonition. In general, Council will provide its members with an opportunity to respond to the alleged violation before taking any action, including issuing an admonition.
(2) Informal Reprimand and Direction to Correct. An informal reprimand is a reprimand directed to a Councilmember or members based on a particular action or set of actions that the Council determines violates law or City policy but is considered to be not sufficiently serious to require formal censure. The Council may include direction to the subject Councilmember or members to correct the particular behavior or the result of the behavior that violated law or City policy.
(3) Resolution of Censure. Censure is a formal statement of disapproval expressed through a resolution. Censure is the strongest sanction available to Council, and is typically reserved for serious or recurring conduct, such as conduct that has substantially disrupted Council’s work, brought approbation on the City, or damaged public trust in City government. A resolution of censure may include the imposition of sanctions against the Councilmember, as allowed by law. Such sanctions may include, for example, removal from a committee or restrictions on City-related travel privileges. (c) Procedures. The following procedures are intended to guide Council to reach accurate and appropriate conclusions in an expeditious manner, while providing fairness and transparency for all Councilmembers and the public. Council will endeavor to adhere to these procedures, except where extraordinary circumstances require alternative steps be taken. In all cases, an opportunity to be heard will be afforded to any Councilmember who may be subject to informal reprimand or censure. (1) Should two or more Councilmembers believe that actions by a Councilmember are inconsistent with federal, state or local law, this Handbook, or any other document adopted by the Council , those Councilmembers may use a Colleagues’ Memo to schedule public discussion of the matter at an upcoming Council meeting. A Colleagues’ Memo may initiate a discussion of Councilmember conduct and Council expectations, may propose that Council protocols be clarified or a new protocol be included in this Handbook, or may propose initiation of disciplinary action. Proposed disciplinary actions may include admonition, informal reprimand, direction to correct, and/or censure.

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(2) If a Colleagues’ Memo proposes discipline of a Councilmember, the Memo must contain the specific charges on which the proposed discipline is based. Completed Council Colleagues’ Memos shall be provided to the City Clerk’s staff by noon on the Thursday 11 days prior to the Council meeting that the memo is intended to be agendized, to provide time for the City Clerk to process for the Council packet. The City Clerk will provide a copy of the Colleagues’ Memo to the Councilmember who is the subject of the memo no later than the Thursday 11 days prior to the meeting at which the memo is agendized. (3) The Councilmember who is the subject of the proposed disciplinary action may address the matter in writing or at the Council meeting or both. If the Councilmember submits written materials, those must be published in a supplemental packet, no later than 72 hours before the meeting.
(4) During the Council meeting at which the Colleagues’ Memo is agendized, the Council will decide, by majority vote, whether:
(i) A formal disciplinary hearing should be agendized for a future Council meeting;
(ii) Further investigation of the allegations is required; (iii) Further investigation is not warranted and an admonition should be issued;
(iv) Council’s procedures and protocols should be clarified or a new procedure or protocol should be introduced; or
(v) No further action is necessary.
(5) If the Council determines that further investigation is required, the Mayor (or the Vice Mayor if the Mayor is the subject of the proposed disciplinary action) may designate an ad hoc committee to conduct the investigation. The Council or the ad hoc committee may select an independent investigator to assist in conducting the investigation. The independent investigator would be managed by the ad hoc committee or other official designated by Council. The ad hoc committee shall review the findings of the investigation and arrive at a recommendation to Council. The ad hoc committee should proceed as promptly as reasonably possible.
(6) Upon receipt of the report of the ad hoc committee, the City Clerk shall place the matter on the Council's next agenda in order for the Council to receive the committee report and determine appropriate next steps. If the Council decides to set the matter for censure hearing, it shall schedule the hearing as soon as possible but no sooner than three weeks after its determination to hear the matter. Council shall give due consideration to requests from the subject Councilmember for additional time to prepare. The Council shall not schedule the matter during any previously scheduled excused absence of the subject Councilmember.
(7) The Mayor (or the Vice Mayor if the Mayor is the subject of the proposed disciplinary action) will designate a Councilmember responsible for preparing and submitting to the City Clerk a censure resolution and supporting materials. Final materials shall be submitted to the Clerk by noon on the Thursday 11 days prior to the Council meeting that the hearing is intended to Item 15
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be agendized, to provide time for the City Clerk to process the materials for the Council packet. The Councilmember assigned to prepare the materials will submit the draft resolution and supporting materials to the City Attorney’s Office no later than the Thursday 18 days before the hearing, to give the City Attorney’s Office adequate time to review the materials before publication. The City Clerk shall deliver written notice of the hearing, along with the report, proposed resolution, and supporting materials, to the Councilmember subject to the censure by close of business on the Thursday 11 days prior to the Council meeting for which the hearing is agendized.
(8) The Councilmember who is the subject of the proposed disciplinary action may address the matter in writing or at the hearing or both. If the Councilmember submits written materials, those must be submitted in time to be published in a supplemental packet no later than 72 hours before the hearing.
(9) At the disciplinary hearing, the Councilmember who is the subject of the request for disciplinary action shall have the opportunity to rebut the allegations in the censure resolution and to question any known complainants or witnesses if they agree to be questioned. The member subject to the charges may be represented and may have the representative speak or ask questions on their behalf. The questioning or cross-questioning of witnesses may be reasonably limited by the Mayor (or Vice Mayor if the Mayor is the subject of the proposed disciplinary action). Testimony shall be taken only from witnesses having direct knowledge of facts or circumstances relevant to the specific charges under consideration. However, the rules of evidence and judicial procedure applicable in courts of law shall not be apply to this hearing, and the procedures shall be generally informal.
(d) Disciplinary Action. If, at the close of the hearing, a majority of the Council finds that the subject member's conduct violates federal, state or local law, this Handbook, or any other document adopted by the Council, the Council may take one or more of the following actions:
(1) Issue an Admonition. An admonition may be directed to any or all members of the Council, reminding them that a particular type of behavior is in violation of law or City policy.
(2) Issue an Informal Reprimand with possible Direction to Correct. An informal reprimand may be issued to a Councilmember or members based on a particular action or set of actions that the Council determines violates law or City policy but is considered to be not sufficiently serious to require formal censure. The Council may include direction to the subject Councilmember or members to correct the particular behavior or the result of the behavior that violated law or City policy.
(3) Adopt a Formal Resolution of Censure, with or without additional sanctions. The Council may adopt a resolution of censure based on clear and convincing facts supporting the allegations of misconduct giving rise to the censure. A resolution of censure may include the imposition of sanctions against the Councilmember as a majority of the Council deems appropriate, as allowed by law. Such sanctions may include, for example, removal from a committee and/or restrictions on City-related travel privileges.

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PART II: CITY COUNCIL PROTOCOLS
The citizens, businesses and organizations of the city are entitled to have fair, ethical and accountable local government, which has earned the public’s full confidence for integrity. To this end, the City Council has adopted Council Protocols and this Code of Ethics for members of the City Council to assure public confidence in the integrity of local government and its effective and fair operation.

SECTION 1 – CITY COUNCIL CONDUCT

1.1 Positive Work Place Environment
Members shall support the maintenance of a positive and constructive work place environment for City employees and for citizens and businesses dealing with the City. Members shall recognize their special role in dealings with City employees to in no way create the perception of inappropriate direction to staff.

1.2 Comply with Law
Members shall comply with the laws of the nation, the State of California and the City in the performance of their public duties. These laws include but are not limited to: the United States and California constitutions, the city Charter, laws pertaining to conflicts of interest, election campaigns, financial disclosures, employer responsibilities and open processes of governments and City ordinances and policies.
(a) Respect for Process
Members shall perform their duties in accordance with the processes and rules of order established by the Council governing the deliberation of public policy issues, meaningful involvement of the public and implementation of policy decisions of the Council by City staff.

1.3 City Council Core Responsibilities (exist. Protocol Sec. 1) All members of the Council, including those serving as Mayor and Vice Mayor, have equal votes. No Councilmember has more power than any other Councilmember, and all should be treated with equal respect.
(a) All Councilmembers:
1) Demonstrate honesty and integrity in every action and statement 2) Comply with both the letter and spirit of the laws and policies affecting the operation of government.
3) Serve as a model of leadership and civility to the community 4) Inspire public confidence in Palo Alto government
5) Work for the common good, not personal interest
6) Prepare in advance of Council meetings and be familiar with issues on the agenda 7) Fully participate in Council meetings and other public forums while demonstrating respect, kindness, consideration, and courtesy to others 8) Do not politicize procedural matters such as minutes approval or agenda order for strategic purposes
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9) Participate in scheduled activities to increase Council effectiveness 10) Review Council procedures, such as these Council Protocols, at least annually 11) Represent the City at ceremonial functions at the request of the Mayor 12) Be responsible for the highest standards of respect, civility and honesty in ensuring the effective maintenance of intergovernmental relations 13) Respect the proper roles of elected officials and City staff in ensuring open and effective government
14) Provide contact information to the City Clerk in case an emergency or urgent situation arises while the Councilmember is out of town

1.4 General Member Conduct
Councils are composed of individuals with a wide variety of backgrounds, personalities, values, opinions, and goals. Despite this diversity, all have chosen to serve in public office in order to improve the quality of life in the community. In all cases, this common goal should be acknowledged even as Council may "agree to disagree" on contentious issues. (a) Conduct of Members
The professional and personal conduct of members must be above reproach and avoid even the appearance of impropriety. Members shall refrain from abusive conduct, personal charges or verbal attacks upon the character or motives of other members of the Council, boards and commissions, the staff or the public. Rude and unprofessional behavior are also unacceptable.

Councilmembers are expected to share factual information during meetings and within the public domain and Councilmembers should refrain from repeating false and misleading information. (b) In Public Meetings
1) Use Formal Titles
The Council should refer to one another formally during Council meetings as Mayor, Vice Mayor or Councilmember followed by the individual’s last name. Committee Meetings can be conducted less formally, at the discretion of the Committee Chair. 2) Practice Civility and Decorum in Discussions and Debate Difficult questions, tough challenges to a particular point of view, and criticism of ideas and information are legitimate elements of a free democracy in action. Be respectful of diverse opinions.
3) Honor the Role of the Presiding Officer in Maintaining Order and Equity Respect the Chair's efforts to focus discussion on current agenda items. Objections to the Chair's actions should be voiced politely and with reason, following the parliamentary procedures outlined in the Council Procedural Rules.
4) Demonstrate Effective Problem-Solving Approaches
Councilmembers have a public stage to show how individuals with disparate points of view can find common ground and seek a compromise that benefits the community as a whole. Councilmembers are role models for residents, businesspeople and other stakeholders involved in public debate.

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5) Be Respectful of Other People's Time
Stay focused and act efficiently during public meetings. (c) In Private Encounters
1) Treat Others as You Would Like to be Treated
Ask yourself how you would like to be treated in similar circumstances, and then treat the other person that way.

1.5 Decisions Based on Merit
Members shall base their decisions on the merits and substance of the matter at hand, rather than on unrelated considerations.

1.6 Advocacy
(a) Representation of Private Interests
In keeping with their role as stewards of the public interest, members of Council shall not appear on behalf of the private interests of third parties before the Council or any other board, commission or proceeding of the City, nor shall members of boards and commissions appear before their own bodies or before the Council on behalf of the private interests of third parties on matters related to the areas of service of their bodies. (b) Advocacy
Members shall represent the official policies or positions of the Council, board or commission to the best of their ability when designated as delegates for this purpose. When presenting their individual opinions and positions, members shall explicitly state they do not represent their body or the City, nor will they allow the inference that they do. (c) Council Voting Delegate Authority at Conferences / Annual Meetings The Council may authorize a Councilmember to act as the voting delegate at conferences or meetings of other bodies, including, but not limited to, the League of California Cities annual conference, National League of Cities conference, and the Association of Bay Area Governments (ABAG) annual meeting. Prior to the conference / meeting, the Council may provide the voting delegate with specific direction on proposed resolutions and other matters. When provided specific direction, the voting delegate’s authority is limited to matters on which the Council has directed the delegate to vote. In the absence of explicit direction, when the Councilmember is aware of a prior position the Council has taken, the Councilmember will adopt that position. (d) Be Cautious in Representing City Positions on Issues Before sending correspondence related to a legislative position, check with City staff to see if a position has already been determined. When corresponding with representatives of other governments or constituents remember to indicate, if appropriate, that the views you state are your own and may not represent those of the full Council.

As a Councilmember, it is important to remember to indicate when the views you state are your own versus views which represent those of the full Council. This is relevant whether sending Item 15
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correspondence related to a legislative position or corresponding with constituents or representatives of other governmental agencies or organizations.

Councilmembers appointed to regional boards, commissions, or agencies shall stay informed of any positions adopted by Council relevant to the jurisdiction of the Board and shall consider such positions along with other pertinent information in carrying out their duties on the regional body.

In the case where a Councilmember is speaking publicly on an issue on which Council has taken a position, and that Councilmember also serves on a regional body that has also taken a position, , the Councilmember should clearly state whether they are speaking on behalf of the City or the regional body.
(e) Use of City Letterhead
Official Mayor/ Council letterhead should only be used for correspondence signed by the Mayor or Councilmembers when specifically directed by the Council or consistent with prior Council direction. This applies to the use of any stationery that could be interpreted as official letterhead.

1.7 Council Conduct with City Staff
Governance of a City relies on the cooperative efforts of elected officials, who set policy, and City staff, which analyze problems and issues, make recommendations, and implement and administer the Council’s policies. Therefore, every effort should be made to be cooperative and show mutual respect for the contributions made by each individual for the good of the community. (a) Treat All Staff as Professionals
Clear, honest communication that respects the abilities, experience, and dignity of each individual is expected. As with your Council colleagues, practice civility and decorum in all interactions with City staff.
(b) Channel Communications through the Appropriate Senior City Staff Questions of City staff should be directed only to the City Manager, Assistant City Manager, City Attorney, City Clerk, Assistant City Clerk, City Auditor, Senior Assistant City Attorneys, or Department Heads. The Office of the City Manager should be copied on any request to Department Heads. Councilmembers should not set up meetings with department staff directly, but work through Department Heads, who will attend any meetings with Councilmembers.

When in doubt about what staff contact is appropriate, Councilmembers should ask the City Manager for direction. However, nothing in these protocols is intended to hinder the access Council-appointed liaisons (e.g. to the San Francisquito JPA or NCPA) may require in order to fulfill their unique responsibilities.
(c) In order to Facilitate Open Government, All Councilmembers Should Make Decisions with the Same information from Staff on Agendized or Soon-to be-Agendized Items (Items on the Tentative Agenda or in a Council Committee)
(d) Never Publicly Criticize an Individual Employee, Including Council Appointed Officers.

Criticism is differentiated from questioning Facts or the opinion of staff. All critical comments about staff performance should only be made to the City Manager through private correspondence or
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conversation. Comments about staff in the office of the City Attorney, City Auditor or City Clerk should be made directly to these CAOs through private correspondence or conversation. (e) Do Not Attend Staff Meetings Unless Requested by Staff Even if the Councilmember does not say anything, the Councilmember’s presence may imply support, show partiality, intimidate staff, or hampers staff’s ability to do its job objectively. (f) Depend upon the Staff to Respond to Citizen Concerns and Complaints It is the role of Councilmembers to pass on concerns and complaints on behalf of their constituents. It is not, however, appropriate to pressure staff to solve a problem in a particular way. Refer citizen complaints to the appropriate senior staff member, according to the protocol on channeling communications. The senior staff member should respond according to the Policy and Procedure for Responding to Customer Complaints. Senior staff is responsible for making sure the Councilmember knows how the complaint was resolved. (g) Do not Solicit Political Support from Staff
The City Charter states that “Neither the city manager or any other person in the employment of the city shall take part in securing or shall contribute any money toward the nomination or election of any candidate for a municipal office.” In addition, some professionals (e.g., City Manager and the Assistant City Manager) have professional codes of ethics, which preclude politically partisan activities or activities that give the appearance of political partisanship.

Councilmembers shall refrain from coercing staff in making recommendations to the Council as a whole.
(h) Use of Public Resources
Councilmembers shall not use public resources, such as City staff time, equipment, supplies or facilities, for private gain or personal purposes.

1.8 Use of Staff Time
(a) Do Not Get Involved in Administrative Functions
The key provisions on Council-staff relations found in section 2.04.170 of the Palo Alto Municipal Code:
“Neither the council nor any of its committees or members shall direct, request or attempt to influence, either directly or indirectly, the appointment of any person to office or employment by the city manager or in any manner interfere with the city manager or prevent the city manager from exercising individual judgment in the appointment of officers and employees in the administrative service. Except for the purpose of inquiry, the council and its members shall deal with the administrative service solely through the city manager, and neither the council nor any member thereof shall give orders to any of the subordinates of the city manager, either publicly or privately.”
(b) Respect the “One Hour” Rule for Staff Work
Requests for staff support should be made to the appropriate senior staff member, according to the protocol for channeling communications. Any request, which would require more than one hour of staff time to research a problem or prepare a response, will need to be approved by the Item 15
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full council to ensure that staff resources are allocated in accordance with overall council priorities. Once notified that a request for information or staff support would require more than one hour, the Councilmember may request that the City Manager place the request on an upcoming Council agenda. The 1-hour rule applies to all Councilmembers equally. * * *
SECTION 2 - CITY COUNCIL CONDUCT WITH PALO ALTO BOARDS AND COMMISSIONS The City has established several Boards and Commissions as a means of gathering more community input. Citizens who serve on Boards and Commissions become more involved in government and serve as advisors to the Council. They are a valuable resource to the City’s leadership and should be treated with appreciation and respect. Councilmembers serve as liaisons to Boards and Commissions, according to appointments made by the Mayor, and in this role are expected to represent the full Council in providing guidance on Council processes or actions to the Board or Commission. Refrain from speaking for the full Council on matters for which the full council has not yet taken a policy position. In other instances, Councilmembers may attend Board or Commission meetings as individuals, and should follow these protocols:

2.1 If Attending a Board or Commission Meeting, Identify Your Comments as Personal Views or Opinions.

Councilmembers may attend any Board or Commission meeting, which are always open to any member of the public. Any public comments by a Councilmember at a Board or Commission meeting, when that Councilmember is not the liaison to the Board or Commission, should make a point to clearly state it is an individual opinion and not a representation of the feelings of the entire Council.

2.2 Refrain from Lobbying Board and Commission Members
It is inappropriate for a Councilmember to contact a Board or Commission member to lobby on behalf of an individual, business, or developer, or to advocate a particular policy perspective. It is acceptable for Councilmembers to contact Board or Commission members in order to better understand a position taken by the Board or Commission or the status of an ongoing matter.

2.3 Remember that Boards and Commissions are Advisory to the Council as a Whole, not as Individual Councilmembers
The Council appoints individuals to serve on Boards and Commissions, and it is the responsibility of Boards and Commissions to follow policy established by the Council. Councilmembers should not feel they have the power or right to unduly influence Board and Commission members. A Board and Commission appointment should not be used as a political reward.

2.4 Concerns about an Individual Board or Commission Member Should be Pursued with Tact If a Councilmember has concerns with a particular Board or Commission member fulfilling his or her roles and responsibilities and is comfortable in talking with that individual privately, the Councilmember should do so. If needed, the Councilmember may involve a Chair of a commission or the liaison to the commission if there is one. Alternatively, or if the problem is not resolved, the Councilmember should consult with the Mayor, who may address the issue to the Council as Item 15
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appropriate.

2.5 Be Respectful of Diverse Opinions
A primary role of Boards and Commissions is to represent many points of view in the community and to provide the Council with advice based on a full spectrum of concerns and perspectives.

Councilmembers may have a closer working relationship with some individuals serving on Boards and Commissions but must be fair to and respectful of all citizens serving on Boards and Commissions.

2.6 Keep Political Support Away from Public Forums
Board and Commission members may offer political support to a Councilmember, but not in a public forum while conducting official duties. Conversely, Councilmembers may support Board and Commission members who are running for office, but not in an official forum in their capacity as a Councilmember.

2.7 Maintain an Active Liaison Relationship
Appointed Council liaisons or alternates are encouraged to attend all regularly scheduled meetings of their assigned Board or Commission.

2.8 Role of Council Liaison to Board or Commission
The role of Council liaison to a Board or Commission is to be a point of contact with Council and a resource to the Board and Commission, as well as to share prior Council discussions and actions on issues as applicable, and assist the Board or Commission in understanding how it might inform Council decision-making. The liaison is expected to attend Board or Commission meetings as requested by the body unless the Councilmember has other conflicting duties. * * *
SECTION 3 - STAFF CONDUCT WITH CITY COUNCIL

3.1 Respond to Council Questions as Fully and as Expeditiously as is Practical The protocol for staff time devoted to research and response is in application here. If a Councilmember forwards a complaint or service request to a department head or a Council Appointed Officer, there shall be follow-through with the Councilmember as to the outcome.

3.2 Respect the Role of Councilmembers as Policy Makers for the City Staff is expected to provide its best professional recommendations on issues. Staff should not try to determine Council support for particular positions or recommendations in order to craft recommendations. The Council must be able to depend upon the staff to make independent recommendations. Staff should provide information about alternatives to staff recommendations as appropriate, as well as pros and cons for staff recommendations and alternatives

3.3 Demonstrate Professionalism and Non-Partisanship in all Interactions with the Community and in Public Meetings
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3.4 It is Important for the Staff to Demonstrate Respect for the Council at all Times All Councilmembers should be treated equally.
* * *
SECTION 4 - CITY COUNCIL AND BOARDS AND COMMISSIONS POLICY FOR TRAVEL AND

MISCELLANEOUS EXPENSE REIMBURSEMENT

4.1 Mayor and Vice Mayor Additional Compensation
The Mayor shall receive $150 monthly and the Vice Mayor $100 monthly to defray additional expenses of these offices.

4.24.1 Miscellaneous Expenditures
(a) Expenditure of City Council Contingency Funds
Requests for expenditure of Council Contingency Funds up to $10,000 should be made to the Mayor and Vice Mayor. Where the Mayor and Vice Mayor agree with the request, it will be announced during Councilmember Questions, Comments and Announcements. The expenditure will be considered approved unless two or more Councilmembers request additional information or discussion, in which case the expenditure will be agendized at a future meeting. Expenditures over $10,000 require action by Council motions, which shall be by Colleagues’ Memo placed on Consent, or as part of an agendized item.
(b) City Purchase of Tickets or Sponsorship of Non-Profit Organization Events The City Manager may purchase tickets or sponsor events by non-profit organizations, subject to budget availability, under any of the following circumstances:
1) where the event serves a City educational purpose,
2) recognition for work done by staff (not including elected or appointed officials), or 3) expending budget allocations specifically intended for event attendance. (c) Expenditure for Annual Holiday Event
Expenditures of up to $1,500 from the Council Special Events budget may be directed to be expended from an annual holiday celebration, subject to budget availability for attendance by Councilmembers, executive leadership staff, and community leaders. Event details will be coordinated by the Mayor and facilitated by staff.

4.34.2 Council and Boards and Commission Travel Policy
Councilmember travel expenses and reimbursements will adhere to the Citywide Travel Arrangements and Expense Reimbursement Policy (Administrative Policy 1-02/ASD) The following additional policy is set by the Council and applies to Councilmembers and to Board and Commissions members. In reimbursing travel and miscellaneous expenses, a municipal purpose requiring the expenditure of public funds must be in evidence; also, in accordance with the Charter and Municipal Code, such expenditures must be from authorized appropriations. Councilmembers are limited to six (6) times per year for travel reimbursements, subject to budget availability.

Councilmember travel will be approved by the Mayor.
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1) Given the City’s relationship with many Sister Cities and a Sibling City, there may be a need to send a Palo Alto delegation to another city abroad or within the United States related to Sister Cities, Sibling City, or shared interests between Palo Alto and another city abroad. The following will apply when a Councilmember travels abroad or domestically on behalf of the City as part of Sister City, Sibling City, or shared interests efforts. Note, such a trip would count towards the six (6) total tips cap described above.

The proposed travel must include an approved Pre-Travel Authorization Request for travel that explains how the travel will advance the City's interests or policy/Council objectives and a consideration of the cost/value relationship of the trip. The request should also explain why virtual attendance is not effective in that circumstance. The Council will be responsible for ensuring that visits to any individual city will be reasonably spaced apart. The Pre-Travel Authorization Request will be approved by the Mayor. If the Mayor is the requested traveler, the request will be approved by the Vice Mayor.
2) Annually, the total amount the Council will budget for international and domestic travel related to Sister Cities, Sibling City, or shared interests between Palo Alto and another city abroad will be capped at $40,000 with reasonable annual adjustments beyond 2024 to account for inflation.

This funding will be distributed equitably amongst Councilmembers who meet the guidelines above and express an interest to travel.

3) It is prohibited for the travelling Councilmember, Mayor, or Vice Mayor to accept hotel accommodations from Sister Cities, Sibling Cities, or Friendship Cities. When receiving other gifts from Sister Cities, Sibling Cities, or Friendship Cities, the Councilmember, Mayor, or Vice Mayor should use discretion and best judgment in accepting the gifts. (b) Support Services
The City Clerk’s Office makes travel arrangements for Councilmembers. This service includes conference registration, hotel reservations, per diem advances and reimbursement of unforeseen expenses. The department liaison for each board and commission will be responsible for arrangements for Officials.
(c) Activities Not Considered Reimbursable
1) Voluntary attendance at any conference or meeting, not representing the City. 2) Meetings of social or service organizations.
3) Meetings of voter groups or with individual citizens concerned with agenda items. 4) Election campaign activities.
5) Alcohol and entertainment expenses.
6)Personal portion of the trip and other non-mileage automobile expenses. (d) Reports to Council
Councilmembers and officials shall provide brief verbal reports on meetings attended at the City’s expense at the next regular Council/Board/Commission meeting. If multiple Officials attended, a joint report may be made. All related documents are subject to the Public Records Act and can be periodically reviewed by auditors.

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(e) Violation of This Policy
Use of public resources or falsifying expense reports is in violation of this policy and may result in any or all of the following:
1) Loss of reimbursement privileges
2) A demand for restitution to the City
3) The City reporting the expenses as income to the elected or appointed Official to state and federal tax authorities
4) Civil penalties of up to $1000 per day and three times the value of the resources used 5) Prosecution for misuse of public resources
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SECTION 5 – CITY COUNCIL REIMBURSEMENT POLICY FOR EXPENSES INCURRED IN THE

PERFORMANCE OF THEIR OFFICIAL DUTIES

5.1 Purpose
This PolicySection establishes the guidelines and standards regarding reimbursement of actual and necessary expenses of the City Council incurred in the performance of official City duties.

Councilmembers may incur expenses in fulfilling the responsibilities as an elected official. All expenditures of public funds must be related to the performance of City business. Councilmembers may be reimbursed for actual and necessary expenses incurred in the performance of authorized City business and official duties in conformance with this Policy.

Reimbursement for travel and mMiscellaneous expenses Expenditures shall be governed by Section 4 – City Council and Boards and Commissions Policy for Travel and Miscellaneous Expense Reimbursement, as detailed in that Section.

5.1 Authorized Expenses
Communications tools (e.g., cellular phones, data plans, computers, and Internet access) are necessary for Councilmembers to fulfill their official responsibilities of communication with constituents, City staff, and others. In lieu of the City providing communication tools to each Councilmember, Councilmembers are expected to use personal devices in the course of their duties. (a) Technology Purchases Reimbursement
Councilmembers may be reimbursed for technology purchases that are essential for performing official duties. These purchases include, but are not limited to, computers, printers, printer ink, tablets, software, and subscriptions services (e.g., internet, Zoom, etc.).

If the technology purchase will be used exclusively for official business, the Councilmember will be reimbursed for all the actual cost of the purchase up to $2,000 each calendar year from the City Council Contingency Funding. A Councilmember is limited to one hardware item of the same type per Item 15
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term. If the City fully reimburses a Councilmember for a physical device, the device must be returned to the City at the end of the Councilmember's service. However, the City may allow the Councilmember to keep the device if it is determined that the device has no value or is no longer useful to the City.

If the technology purchase will be used for personal use as well as official business, Councilmembers will be reimbursed 25% of the actual cost of the purchase up to $2,000 each calendar year from the City Council Contingency Funding. Considering the difficulty in parsing out official use versus personal use in this circumstance, this shall be considered a reasonable amount to represent the reimbursement for actual costs associated with the technology purchase. (a) Cellular Phone Usage Reimbursement
Councilmembers will be reimbursed 25% of the actual total monthly cost of the use of their cellular phone up to $2,000 each calendar year from the City Council Contingency Funding. Considering the difficulty in parsing out official use versus personal use in this circumstance, this shall be considered a reasonable amount to represent the reimbursement for actual costs associated with the use of their cellular phone.
(b) Expenditures Requiring Council Approval
Except as set forth in this SectionSections 4 and 5, all other expenditures require prior approval by the Council at a public meeting. Any questions regarding the propriety of a particular type of expense should be resolved by the Council before the expense is incurred.

5.1 Monitoring and Reporting
All expenses and claims for reimbursement shall be submitted on City expense report forms within 60 days of the incurred expense. All expense reports shall be accompanied by documentation showing that the expenses comply with this Policy the policies set forth in this Manual for expenditure of public resources. Inability to provide such documentation in a timely manner may result in the expense being borne by the Councilmember. Reimbursements that do not comply with this policy will not be approved.

Expense reports are subject to audits. Approved reimbursements will be processed and issued within 30 days of approval.
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SECTION 65 - Confidentiality, Conflicts of Interest, Gifts And Favors Members shall respect the confidentiality of information concerning the property, personnel or affairs of the City. They shall neither disclose confidential information without proper legal authorization, nor use such information to advance their personal, financial or other private interests. There are many State laws regarding confidentiality, conflicts of Interest, and gifts and favors. Councilmembers should stay apprised of and comply with State law on these topics.

Resource Links: will be added here.
Cal Cities Open & Public VI A Guide to the Ralph M. Brown Act https://www.calcities.org/resource/open-public-v-a-guide-to-the-ralph-m.-brown-act Item 15
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Fair Political Practices Commission Conflict of Interest Rules https://www.fppc.ca.gov/learn/conflicts-of-interest-rules.html Fair Political Practices Statements of Economic Interest – Form 700 https://www.fppc.ca.gov/learn/conflicts-of-interest-rules.html Item 15
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Palo Alto City CouncilJanuary 12, 2026

Palo Alto City Council
January 12, 2026