Agenda packet — Palo Alto City Council, April 20, 2026 (part 1 of 3)

CITY COUNCIL
Regular Meeting
Monday, April 20, 2026
Council Chambers & Hybrid
5:30 PM
Amended Agenda
Amended agenda items appear below in RED

Palo

Alto

City

Council

meetings

will

held

“hybrid”

meetings

with

the

option

attend

by
teleconference

person.

Information

how

the

public

may

observe

and

participate

the
meeting

located

the

end

the

agenda.

The

meeting

will

broadcast

Cable

Channel
26,

live

YouTube

https://www.youtube.com/c/cityofpaloalto
,

and

streamed

Midpen

Media
Center
https://midpenmedia.org
.

VIRTUAL PARTICIPATION

CLICK HERE TO JOIN

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

PUBLIC COMMENTS
General

Public

Comment

for

items

not

the

agenda

will

accepted

person

for

three
minutes

amount

time

determined

the

Chair.

General

public

comment

will

heard
for

30 minutes.

Additional

public

comments,

any,

will

heard

the

end

the

agenda.

Public

comments

for

agendized

items

will

accepted

both

person

and

via

Zoom

for

to
three

minutes

amount

time

determined

the

Chair.

Requests

speak

will

taken
until

5 minutes

after

the

staff’s

presentation

determined

the

Chair.

Written

public
comments

can

submitted

advance

[email protected]

and

will

provided

to
the

Council

and

available

for

inspection

the

City’s

website.

Please

clearly

indicate

which
agenda

item

you

are

referencing

your

subject

line.

Multiple

individuals

who

wish

speak

on
the

same

item

may

designate

spokesperson.

Spokespersons

must

representing

five

more
verified

individuals

who

are

present

either

person

via

zoom.

Spokespeople

will

allowed
up

10 minutes,

the

discretion

the

presiding

officer.

Speaking

time

may

reduced

the
presiding officer reduces the speaking time for individual speakers.

PowerPoints,

videos,

other

media

presented

during

public

comment

are

accepted

only
by

[email protected]

least

24 hours

prior

the

meeting.

Once

received,

the

Clerk

will

have

them

shared

public

comment

for

the

specified

item.

uphold

strong
cybersecurity

management

practices,

USB’s

other

physical

electronic

storage

devices

are

not
accepted.

Signs

and

symbolic

materials

less

than

2 feet

3 feet

are

permitted

provided

that:
(1)

sticks,

posts,

poles

similar/other

type

handle

objects

are

strictly

prohibited;

(2)

the
items

not

create

facility,

fire,

safety

hazard;

and

(3)

persons

with

such

items

remain
seated

when

displaying

them

and

must

not

raise

the

items

above

shoulder

level,

obstruct

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

TIME ESTIMATES
Listed

times

are

estimates

only

and

are

subject

change

any

time,

including

while

the
meeting

progress.

The

Council

reserves

the

right

use

less

time

any

item,

to
change

the

order

items

and/or

continue

items

another

meeting.

Particular

items

may

be
heard

before

after

the

time

estimated

the

agenda.

This

may

occur

order

best

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

1 April 20, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.

CALL TO ORDER

SPECIAL ORDERS OF THE DAY (5:30 - 5:45 PM)

1. Proclamation Recognizing Earth Day and the Palo Alto Youth Climate Advisory Board

2. Proclamation Recognizing National Crime Victims' Rights Week April 19-25, 2026

AGENDA CHANGES, ADDITIONS AND DELETIONS

PUBLIC COMMENT (5:45 - 6:15 PM)
Members of the public may speak in-person ONLY to any item NOT on the agenda. 1-3 minutes depending on number of speakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.

COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:15 - 6:25 PM) Members of the public may not speak to the item(s).

STUDY SESSION (Item 3: 6:25 - 7:25 PM, Item 4: 7:25 - 8:25 PM)

3. Discussion of the Draft 2026-2030 Santa Clara County Community Plan to End Homelessness; CEQA Status—Not a project.

4. 910 Webster Street [26PLN-00026]. Request for Council Prescreening to Rezone the Subject Property from RM-20 to Planned Community/Planned Home Zoning and to Allow Construction of 70 Residential Units in a Seven-Story Structure. CEQA Status: Not a Project.

CONSENT CALENDAR (8:25 - 8:30 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.

5. Approval of Minutes from April 6, 2026 Meeting

6. Adopt a Resolution Authorizing the Director of Planning and Development Services to Make Minor Modifications to the 2023-2031 Housing Element Site Inventory. CEQA Status: The City Council adopted a Revised Addendum to the Comprehensive Plan Final Environmental Impact Report on December 18, 2023, that, in conjunction with the Comprehensive Plan Final EIR, fully analyzes the impacts of the 6th Cycle Housing Element, including minor modifications to the site inventory.

Supplemental Report Added

2 April 20, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.

7. Approval of Amendment Number 1 to Contract C23187554 with Vox Network Solutions to Increase Compensation by $212,819 and to Extend the Term to June 30, 2027, for Maintenance of the City’s Enterprise Phone System; CEQA Status – exempt under section 15061(b)(3).

8. FIRST READ: Adopt an Entertainment Zone Ordinance to Establish an Entertainment Zone on California Avenue as Recommended by the Economic Development Ad Hoc Committee; CEQA status – Categorically Exempt.

9. Approval of Contract Amendment No. 3 to Contract S25190354 with Larratt Brothers Plumbing Inc. in the Amount of $950,000, for a Revised Total Not to Exceed $1,445,000 and to Extend the Contract Term for One Additional Year ending July 21, 2027, for the Residential Emergency Water Heater Replacement Pilot Program Within Electrification Programs; CEQA Status – Not a Project.

10. 4075 El Camino Way [23PLN-00202]: Recommendation to Decline Adoption on Second Reading of an Ordinance Adopting an Amendment to a Planned Community Ordinance (PC-5116) to Allow for Modifications to an Existing 121-Unit Assisted Living and Memory Care Facility. First Reading Adoption was on March 16, 2026. CEQA Status: Exempt from the Provisions of the California Environmental Quality Act (CEQA) in Accordance with CEQA Guidelines Section 15301 (Modifications to Existing Facilities).

Supplemental
Report Added
AA1.

Amend the FY 2026 Budget Appropriation for the Capital Improvement Fund to Establish the Embarcadero Road Improvement Project, Phase 1, and Authorize the City Manager or Their Designee to Award a Construction Contract with a Qualified Contractor for the Embarcadero Road Improvement Project, Phase 1; CEQA Status – Exempt under CEQA Guidelines Section 15301(c)
New Item Added
CITY MANAGER COMMENTS (8:30 - 8:40 PM)

BREAK (15 MINUTES)

ACTION ITEMS (Item 11: 8:55 - 10:00 PM; Item 12: 10:00 - 10:30 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.

11. Quasi-Judicial: Adoption of a Resolution Documenting the City Council’s Consideration and Decision on an Appeal of the Chief Building Official’s Order to Demolish the Buildings Located at 531 Stanford Avenue.

12. Adoption of Recommendations by the Policy & Services Committee Implementing Changes to Meeting Procedures Related to Teleconferencing, Remote Public Participation, Translation and Interpretation Assistance, and Expanded Public Outreach;

3 April 20, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.

CEQA Status – Not a Project.

ADJOURNMENT

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

Monthly Investment Report - March 2026 (Unaudited)
AA2.

Informational Update on Stanford Palo Alto Community Playing Fields (Mayfield) PFAS Testing Results
New Item Added

OTHER INFORMATION
Standing Committee Meetings this week

Finance Committee April 21, 2026
City Schools Liaison Committee April 23, 2026

Public Comment Letters
Schedule of Meetings

AMENDED AGENDA ITEMS

Supplemental Report Added

Supplemental

4 April 20, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.

Report Added

AA1.

AA2.

Informational Update on Stanford Palo Alto Community Playing Fields (Mayfield) PFAS Testing Results
New Item Added

PUBLIC COMMENT INSTRUCTIONS
Members

the

Public

may

provide

public

comments

teleconference

meetings

via

email,
teleconference, or by phone.

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

2. For

person

public

comments

please

complete

speaker

request

card

located

the
table

the

entrance

the

Council

Chambers

and

deliver

the

Clerk

prior

to
discussion of the item.

3. Spoken

public

comments

for

agendized

items

using

computer

smart

phone

will

be
accepted

through

the

teleconference

meeting.

address

the

Council,

click

the

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

may

download

the

Zoom

client

connect

the

meeting

in-

browser.

using
your

browser,

make

sure

you

are

using

current,

up-to-date

browser:

Chrome

30 ,
Firefox

27 ,

Microsoft

Edge

12 ,

Safari

7 .

Certain

functionality

may

disabled

in
older

browsers

including

Internet

Explorer.

download

the

Zoom

application

onto
your

smart

phone

from

the

Apple

App

Store

Google

Play

Store

and

enter

the
Meeting ID below.
◦
You

may

asked

enter

address

and

name.

request

that

you
identify

yourself

name

this

will

visible

online

and

will

used

notify

you
that it is your turn to speak.
◦
When

you

wish

speak

Agenda

Item,

click

“raise

hand.”

The

Clerk

will
activate

and

unmute

speakers

turn.

Speakers

will

notified

shortly

before

they
are called to speak.
◦
When

called,

please

limit

your

remarks

the

time

limit

allotted.

timer

will

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

4. Spoken

public

comments

for

agendized

items

using

phone

use

the

telephone

number
listed

below.

When

you

wish

speak

agenda

item

hit

your

phone

we
know

that

you

wish

speak.

You

will

asked

provide

your

first

and

last

name

before
addressing

the

Council.

You

will

advised

how

long

you

have

speak.

When

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

5 April 20, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.

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

with

Disability

Act

(ADA)

the

policy

the

City

Palo

Alto

offer

its

public
programs,

services

and

meetings

manner

that

readily

accessible

all.

Persons

with
disabilities

who

require

materials

appropriate

alternative

format

who

require

auxiliary
aids

access

City

meetings,

programs,

services

may

contact

the

City’s

ADA

Coordinator

at
(650)

329-2550

(voice)

emailing

[email protected]
.

Requests

for

assistance

or
accommodations

must

submitted

least

24 hours

advance

the

meeting,

program,

or
service.

California

Government

Code

§84308
,

commonly

referred

the

"Levine

Act,"

prohibits

an
elected

official

local

government

agency

from

participating

proceeding

involving

a
license,

permit,

other

entitlement

for

use

the

official

received

campaign

contribution
exceeding

$500

from

party

participant,

including

their

agents,

the

proceeding

within

the
last

12 months.

“license,

permit,

other

entitlement

for

use”

includes

most

land

use

and
planning

approvals

and

the

approval

contracts

that

are

not

subject

lowest

responsible

bid
procedures

and

have

value

over

$50,000.

“party”

person

who

files

application

for,

or
is

the

subject

of,

proceeding

involving

license,

permit,

other

entitlement

for

use.

A
“participant”

person

who

actively

supports

opposes

particular

decision

proceeding
involving

license,

permit,

other

entitlement

for

use,

and

has

financial

interest

the
decision.

The

Levine

Act

incorporates

the

definition

“financial

interest”

the

Political

Reform
Act,

which

encompasses

interests

business

entities,

real

property,

sources

income,

sources
of

gifts,

and

personal

finances

that

may

affected

the

Council’s

actions.

you

qualify

a
“party”

“participant”

proceeding,

and

you

have

made

campaign

contribution

a
Council

Member

exceeding

$500

made

within

the

last

12 months,

you

must

disclose

the
campaign contribution before making your comments.

6 April 20, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas
.

City Council
Staff Report
Report Type: SPECIAL ORDERS OF THE DAY
Lead Department: City Clerk
Meeting Date: April 20, 2026
Report #:2604-6196
TITLE
Proclamation Recognizing Earth Day and the Palo Alto Youth Climate Advisory Board

ATTACHMENTS
Attachment A: Earth Day and Palo Alto Youth Climate Advisory Board APPROVED BY:

Mahealani Ah Yun, City Clerk
Item 1
Item 1 Staff Report

Item 1: Staff Report
Pg.
1 Packet Pg. 7 of 489

Recognizing Earth Day and the Palo Alto Youth Climate Advisory Board

WHEREAS, anthropogenic climate change is a threat to the wellbeing of communities around the world, including Palo Alto; and
WHEREAS, the City of Palo Alto is committed to reducing greenhouse gas emissions to mitigate climate change, to protecting and enhancing the natural environment, and to increasing livability in Palo Alto for residents through climate adaptation; and
WHEREAS, youth are both the demographic most affected by the impacts of climate change and uniquely positioned to educate their peers and motivate action for a more sustainable community; and WHEREAS, the inaugural Youth Climate Advisory Board convened in September 2024 to address issues of sustainability and climate action relevant to Palo Alto youth and to support the City in implementing the Sustainability and Climate Action Plan, and
WHEREAS, each year, “Earth Day” is celebrated by people globally, recognizing the value of the natural environments that sustain us and the importance of mitigating climate change, and WHEREAS, the ultimate success of Palo Alto is strongly correlated to the care of the natural resources that sustain us; and
WHEREAS, on April 22nd, 2026, the City of Palo Alto is observing Earth Day.

NOW, THEREFORE I, Vicki Veenker, Mayor of the City of Palo Alto, do hereby proclaim April 22nd as Palo Alto Earth Day, commend the Youth Climate Advisory Board for their leadership in promoting climate action and sustainability, and urge all residents to acknowledge the importance of climate action and sustainability, to care for the natural environment, to support our City’s multi -faceted sustainability and climate action programs, and to take action to reduce greenhouse gas emissions.

Presented: April 20, 2026

______________________________
Vicki Veenker
Mayor

Proclamation
Item 1
Attachment A - Earth Day
and Palo Alto Youth Climate
Advisory Board

Item 1: Staff Report
Pg.
2 Packet Pg. 8 of 489

9 7
9 2
City Council
Staff Report
Report Type: SPECIAL ORDERS OF THE DAY
Lead Department: City Clerk
Meeting Date: April 20, 2026
Report #:2604-6231
TITLE
Proclamation Recognizing National Crime Victims' Rights Week April 19-25, 2026

ATTACHMENTS
Attachment A: National Crime Victims’ Rights Week
APPROVED BY:

Mahealani Ah Yun, City Clerk
Item 2
Item 2 Staff Report

Item 2: Staff Report
Pg.
1 Packet Pg. 9 of 489

NATIONAL CRIME VICTIMS’ RIGHTS WEEK
April 19-25, 2026

WHEREAS, violent crime touches too many people in Palo Alto, as it does in all parts of our county; and

WHEREAS, since 1981, National Crime Victims’ Rights Week has served as a time to honor the strength and resilience of crime victims, elevate their voices, and reaffirm our commitment to ensuring justice, healing, and support for all those impacted by crime; and

WHEREAS, crime victims and their families often face emotional, physical, and financial hardships, and it is essential that they are treated with dignity, respect, and compassion while being informed of, and able to exercise, their rights; and

WHEREAS, the Santa Clara County District Attorney’s Office Victim Services Unit (VSU) is the designated Victim Witness Assistance Program pursuant to California Penal Code §13835, providing comprehensive, trauma - informed, and client-centered services to victims of all types of crime, regardless of whether charges are filed; and

WHEREAS, the VSU is staffed by specially trained professionals who assist victims in understanding and exercising their rights throughout and beyond the criminal justice process, including providing crisis intervention, emergency assistance, court support, resource referrals, and assistance with compensation and restitution; and

WHEREAS, in the past year, the VSU has demonstrated its commitment to the community by providing over 79,000 services to more than 7,350 crime victims throughout Santa Clara County; and

WHEREAS, the VSU Claims Unit processed over 2,400 California Victim Compensation Board applications in 2025, securing $1,896,466 in financial assistance to help victims, including those in Palo Alto, recover from crime - related expenses; and

WHEREAS, in 2025, the District Attorney’s Office expanded access to the VSU in North County by offering in- person victim advocate services at the Palo Alto branch of the District Attorney’s Office, increasing accessibility for local residents; and

WHEREAS, raising awareness of victims’ rights and available services strengthens our community’s ability to respond to and support those impacted by crime, ensuring that no victim feels alone on their path toward healing and justice.

NOW, THEREFORE I, Vicki Veenker, Mayor of the City of Palo Alto on behalf of the entire City Council, do hereby proclaim April 19–25, 2026, as National Crime Victims’ Rights Week in the City of Palo Alto, and encourage all residents to recognize the importance of victims’ rights, support those impacted by crime, and promote access to services that foster safety, healing, and justice for all.

Presented: April 20, 2026

_____________________________
Vicki Veenker
Mayor

Proclamation
Item 2
Attachment A - National
Crime Victims' Rights Week

Item 2: Staff Report
Pg.
2 Packet Pg. 10 of 489

City Council
Staff Report
From: City Manager
Report Type: STUDY SESSION
Lead Department: City Manager
Meeting Date: April 20, 2026
Report #:2601-5875
TITLE
Discussion of the Draft 2026-2030 Santa Clara County Community Plan to End Homelessness; CEQA Status—Not a project.

RECOMMENDATION
Staff recommends that City Council discuss and provide feedback to County representatives on the Draft 2026-2030 Santa Clara County Community Plan to End Homelessness.

EXECUTIVE SUMMARY
This transmits and provides a forum for Santa Clara County (County) staff to discuss and receive feedback from Council on the Draft 2026-2030 Santa Clara County Community Plan to End Homelessness. County staff will be at the April 20, 2026 Council meeting to present information and discuss the Draft Plan with the Council. Ultimately, once the County has completed outreach and finalized the Draft Plan, staff and the County anticipate the final plan to come back to the Council for review and endorsement. For the past five years, the City has aligned its work relating to homelessness and stability to the County’s 2020-2025 Community Plan to End Homelessness goals addressing the root causes of homelessness, improving the quality of life for unsheltered individuals, and creating healthy neighborhoods for all, and expanding homelessness prevention and housing programs to meet demand. The 2020-2025 Plan achieved its goal of 20,830 people housed and made significant progress on a variety of fronts, including a 19 percent decrease in new households becoming homeless.1 The new proposed draft 2026-2030 Plan contains focus areas to reduce inflow into homelessness, help people to get and stay housed, strengthen access to care and services for people experiencing unsheltered homelessness, and center people with lived experience to lead and transform the homeless system. Similar to the 2020-2025 Plan, much of current City policy and work relating to homelessness and housing stability also aligns with the new draft Plan. 1 2020-2025 Community Plan to End Homelessness Final Progress Report, communityplan-2025-final-progress- report.

Item 3
Item 3 Staff Report

Item 3: Staff Report
Pg.
1 Packet Pg. 11 of 489

This staff report summarizes County data related to homelessness among people affiliated with Palo Alto to help provide a shared fact base and support Council discussion and feedback on the new draft Plan.

BACKGROUND
In August 2021, Council endorsed the Santa Clara County Community Plan to End Homelessness 2020-2025.3 Over the Plan’s five-year time period, the City of Palo Alto engaged in a variety of efforts supporting the Plan’s strategies,4 including:

1. Addressing the root causes of homelessness through system and policy changes through renter protections and anti-displacement provisions;

2. Improving the quality of life for unsheltered individuals and creating healthy neighborhoods for all through piloting and then making permanent its safe parking ordinance and expanding safe parking capacity, constructing an interim housing shelter, piloting a homeless outreach team, and financially supporting a variety of services through the Human Services Resource Allocation Process (HSRAP); and

3. Expanding homelessness prevention and housing programs with $57 million in contributions to affordable housing construction in Palo Alto.5 At the close of the 2020-2025 Plan, the County reported results countywide, with achievements including,
20,830 people housed (goal was 20,000), consisting of 47 percent chronically homeless and 26 percent families with children,
27,037 people placed in temporary housing and shelter, 38,060 people received homelessness prevention assistance, with 93 percent of families remaining stably housed while receiving services, 19 percent decrease in new households becoming homeless, 82 percent increase in temporary housing and shelter capacity, consisting of 1,533 shelter units, 1,190 interim housing units, 365 other transitional housing programs, and 332 safe parking spaces, and
56 deeply affordable and supportive housing developments equaling more than 6,500 homes open, under construction, or in the pipeline.
3 City Council Staff Report, August 8, 2021, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas- minutes-reports/reports/city-manager-reports-cmrs/year-archive/2021/id-13453.pdf. 4 City Council Staff Report, February 10, 2025,
https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=6751&meetingTemplateType=2&comp iledMeetingDocumentId=13091 .
5 City Council Staff Presentation, August 25, 2025,
https://cityofpaloalto.primegov.com/api/compilemeetingattachmenthistory/historyattachment/?historyId=13976 d90-1d8c-42c7-988f-e84d17a90ad0.

Item 3
Item 3 Staff Report

Item 3: Staff Report
Pg.
2 Packet Pg. 12 of 489

Going forward, the new draft Plan9 was built over several months of stakeholder engagement and in consultation with community members, service providers, people with lived experience, and staff from different jurisdictions within the County. The draft Plan identifies the following four focus areas, each accompanied by three strategies, emphasizing capacity and access, service delivery, and system coordination:
Focus Area 1 — Prevent people from becoming homeless
oStrategy A – Expand programs and investments to prevent people from becoming homeless
oStrategy B – Ensure services are effective to prevent people from becoming homeless
oStrategy C – Enhance coordination across systems to prevent people from becoming homeless
Focus Area 2 — Continue to house people and support them in retaining their housing oStrategy A – Increase and maintain a continuum of housing options that meets the need
oStrategy B – Increase consistency, diversity, and quality of housing and services for people accessing the housing continuum
oStrategy C – Improve system coordination throughout the housing continuum Focus Area 3 — Strengthen access to care and services for people experiencing unsheltered homelessness
oStrategy A – Build capacity and expand access to trusted, culturally responsive, and coordinated services and resources throughout Santa Clara County oStrategy B – Increase consistency, variety, and quality of outreach, basic, and essential needs services
oStrategy C – Invest in approaches that improve outcomes and reduce harm for people living unsheltered and the community at-large
Focus Area 4 — Center and invest in people with lived experience to lead and transform the homeless system
oStrategy A – Expand the representation of people with lived experience in leadership roles and decision-making bodies
oStrategy B – Build leadership capacity and advancement pathways for people with lived experience
oStrategy C – Equip homeless system partners to effectively partner with people with lived experience

9 See Attachment A: Santa Clara County Draft Plan to End Homelessness, https://url.usb.m.mimecastprotect.com/s/KAYACoABY2cDNOnGH1fzSpUmsx?domain=osh.santaclaracounty.gov Item 3
Item 3 Staff Report

Item 3: Staff Report
Pg.
3 Packet Pg. 13 of 489

ANALYSIS
To best discuss the new draft Plan, it’s helpful to understand the current flow of Palo Alto- affiliated people11 into and out of homelessness, as well as how the City’s current efforts align with the draft Plan’s focus areas and strategies.

The following summarizes County data related to homelessness among people affiliated with Palo Alto, drawing on the January 2025 Point-in-Time (PIT) Count12 and the Santa Clara County Office of Supportive Housing (OSH) Homeless Management Information System (HMIS) data for Calendar Year (CY) 202513.

The data reflect two core realities:

Homelessness in Palo Alto, particularly unsheltered homelessness, remains a serious challenge.

The January 2025 PIT count identified 418 individuals experiencing homelessness in Palo Alto, including 399 individuals (95%) who were unsheltered. People who are sheltered and experiencing homelessness include those in emergency shelters, transitional housing, or safe havens. Those who are unsheltered are living in places not designed for habitation, such as outdoors, vehicles, streets, parks or abandoned buildings. Palo Alto’s unsheltered proportion is higher than the countywide average, which makes sense given system constraints previously identified in the City’s Housing and Unhoused Services Gap Analysis (e.g., limited interim shelter capacity and housing supply).

Palo Alto’s response is active, coordinated, and service-provider driven.

In partnership with Santa Clara County and a network of nonprofit and healthcare providers, Palo Alto supports outreach, stabilization, interim pathways, housing problem-solving, housing navigation, and supportive services. OSH/HMIS data indicates substantial service activity across programs during CY2025, reflecting both ongoing need and significant partner work.

Key CY2025 HMIS data findings include:
Coordinated Entry Inflow: 297 Palo Alto–affiliated households completed coordinated entry assessments, a consistent, community-wide intake process used to match people to appropriate resources14.
11 For purposes of this staff report, “Palo Alto–affiliated” refers to households identified in OSH/HMIS jurisdiction- level reporting as having a connection to Palo Alto (commonly based on information collected during system engagement, such as self-reported connection and/or service location). 12 County of Santa Clara, Office of Supportive Housing (OSH), “Point-in-Time Count,” https://osh.santaclaracounty.gov/data-and-reports/point-time-count, accessed March 6, 2026. 13 Santa Clara County Office of Supportive Housing (OSH), HMIS jurisdiction-level reporting for Palo Alto (Calendar Year 2025). Source file provided to the City, see Attachment B: Santa Clara County Office of Supportive Housing – Calendar Year 2025 Report (Palo Alto).
14 County of Santa Clara, Office of Supportive Housing (OSH), “Glossary of terms,” https://osh.santaclaracounty.gov/glossary-terms , accessed March 6, 2026.

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Housing Requests and Placements: 154 Palo Alto–affiliated households requested housing assistance, and 71 households were placed into permanent housing.

Placements occur through the countywide system and may be located outside Palo Alto. Service Utilization: Demand remains high across outreach, interim/shelter pathways, housing programs, and service-only supports.

Please note, PIT data are reported as individuals (persons), while coordinated entry and HMIS measures are often reported as households; these measures are not directly comparable. In HMIS reporting, households may also appear in multiple categories19 based on service needs and enrollment during the year20.

System Inflow and Housing Outcomes (CY2025)
Santa Clara County’s Office of Supportive Housing administers the countywide homelessness response system, including coordinated entry, housing placement, and service tracking through the Homeless Management Information System (HMIS). Households experiencing homelessness are assessed using the Vulnerability Index–Service Prioritization Decision Assistance Tool (VI-SPDAT), which helps prioritize households for available housing resources.

HMIS data reflects participating providers and programs; some services may be underrepresented if they are not entered in HMIS. The following information is derived from HMIS and reflects system activity across CY202521.

Coordinated Entry inflow provides an indicator of the scale of household need entering (or re- entering) the homelessness response system. In CY2025, 154 Palo Alto–affiliated households completed first time coordinated entry assessments, compared to 126 in CY2024. With a high unsheltered rate, it is important for Palo Alto to focus on prevention (e.g., helping people to stay housed) to reduce the overall inflow, problem-solving through interim pathways (e.g., identifying and connecting to appropriate shelter or resources) to decrease the percent who are unsheltered, and placement (i.e., into permanent housing) to improve outflow.

Housing requests and placements reflect movement through the County’s coordinated housing system. In CY2025, 154 Palo Alto–affiliated households requested housing assistance and 71 households were placed into permanent housing (countywide: 3,858 requests and 2,012 placements). Because placements occur through the countywide system, housing may be located outside Palo Alto; destination geography is not consistently available in the dataset 5The "breakdown of services" refers to the detailed, client-level tracking of specific assistance provided to individuals or households experiencing or at risk of homelessness. This data is categorized to track service use patterns, measure program effectiveness, and ensure that federal, state, and local funding is accurately reported.

Uplift is a specific services related to bus passes.
21 County of Santa Clara, Office of Supportive Housing (OSH), “Glossary of terms,” accessed March 6, 2026.

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used for this summary25. For those experiencing homelessness, placement outcomes are one of the primary pathways to reducing unsheltered exposure and associated harms. Additionally, increasing the pace of stabilization and housing pathways supports improved conditions in public-facing areas over time.

Program Participation — Palo Alto–Affiliated Households (CY2025) CY2025 service participation, as shown in HMIS, indicates continued demand and substantial provider activity. Households may appear in multiple categories based on needs and enrollment during the year26.
Permanent Supportive Housing 27: 219 households enrolled (214 housed) Rapid Rehousing 28: 74 enrolled (57 housed)
Emergency Housing Voucher Program: 26 enrolled (26 housed) Emergency Shelter 29: 272 served
Transitional Housing 30: 16 served
Safe Parking: 72 served
Street Outreach: 187 served
Housing Problem Solving 31: 203 served
Services Only (incl. UPLIFT) 32: 563 served
Homelessness Prevention: 29 served
25 Santa Clara County Office of Supportive Housing (OSH), HMIS jurisdiction-level reporting for Palo Alto (Calendar Year 2025). Source file provided to the City and attached to this staff report packet: City_of_Palo_Alto_Report_OSH_CY2025.xlsx.
26 Santa Clara County Office of Supportive Housing (OSH), HMIS jurisdiction-level reporting for Palo Alto (Calendar Year 2025). Source file provided to the City and attached to this staff report packet:

City_of_Palo_Alto_Report_OSH_CY2025.xlsx.
27 Housing target towards chronically homeless individuals and families, providing a rental subsidy, intensive case management, and health care. https://osh.santaclaracounty.gov/glossary-terms 28 An intervention to help individuals or families quickly exit homelessness, consisting of identifying housing, providing a modest/declining/temporary rent subsidy, and time-limited case management. 29 Temporary shelter provided for a specific time period only (e.g., 90 days). 30 Temporary supportive housing, typically provided for a limited time (e.g., 2 weeks to 2 years). 31 A Santa Clara County program to help households identify choices and solutions to end their housing crisis (i.e., prevent homelessness or achieve housing stability).
https://files.santaclaracounty.gov/exjcpb1571/migrated/SCC%20CoC%20- %20Housing%20Problem%20Solving%20Guidelines%20062821.pdf 32The Office of Supportive Housing defines support services as targeted, often individualized, assistance designed to help people experiencing homelessness or housing instability obtain permanent housing, retain their tenancy, and improve their stability. These services encompass housing navigation, case management, health services, and life skills training tailored to specific needs. UPLIFT refers to a service that provides bus passes to unhoused individuals.

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These numbers, especially the high “services-only” and outreach counts, may suggest a sustained need for engagement and stabilization while households navigate limited interim and permanent housing supply. Another takeaway from this data, is that the breadth of outreach and supportive service participation reflects ongoing harm-reduction, health connection, and crisis-prevention work that supports safer outcomes for vulnerable residents. Additionally, consistent outreach and pathways to housing stability help address impacts in high-use public areas by connecting people to services and reducing the duration/intensity of unsheltered episodes.

Past and Current City Efforts and Alignment with Draft Plan As demonstrated in the table below, the City’s current efforts and policies align with draft Plan focus areas connected to homelessness prevention, the housing continuum, and services.

Focus Area 1 – Prevent people from becoming homeless
Effort Description
Mediation services Contracted with Project Sentinel to provide information, counseling, conciliation, and mediation support
services for dispute resolution in rental housing,
neighborhood, consumers, workplace, person to
person, or community disputes for the Palo Alto Mediation Program (PAMP) and provides
the same services for the City of Palo Alto Mandatory
Response Program (PAMC Chapter 9.72)41.

Fair Housing Awarded Project Sentinel $22,000 (CDBG) to provide fair housing services, including complaint investigation,
counseling, advocacy and community education.

Rental housing stabilization
requirements
Established a variety of rental housing stabilization
requirements, including:
Requirement to offer a 1-year lease at lease renewal
for covered units (PAMC Section 9.68.030)
Just cause eviction protections that are applicable to more units than protections required by State law
(PAMC Section 9.68.040)
Tenant Relocation Assistance for no-fault evictions for covered units at rates equal to or likely exceeding
assistance levels required by State law (PAMC Section

9.68.050; PAMC Section 9.68.060)
Renter’s remedies if there is noncompliance with
housing rental housing stabilization requirements
(PAMC Section 9.68.080)
41 https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-66860 Item 3
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Focus Area 2 – Continue to house people and support them in retaining their housing Housing Services Awarded Alta Housing $87,756 (HSRAP) for enhanced housing services including youth enrichment,
community-building, and economic stability services
to low-income youth and families residing in Alta
Housing communities.
Awarded Silicon Valley Independent Living Center
$20,067 (CDBG) to provide case management services
to low-income individuals with disabilities to secure
affordable and accessible housing.
Awarded LifeMoves $39,154 (CDBG) to provide
housing navigation, benefits counseling and broader
case management services to clients at the
Opportunity Center.

Food security Awarded $10,000 (Emerging Needs grant) to Alta Housing to expand its food security initiative.

Below Market Rate Housing
Program
Contracted with Alta Housing to administer the City’s Below Market Rate (BMR) program designed to expand access to
affordable ownership and rental housing by requiring or facilitating the creation of deed-restricted units for low- and moderate-income households.

Focus Area 3 – Strengthen access to care and services for people experiencing unsheltered homelessness
Overnight warming location
(OWL)
Awarded $113,166 (HSRAP) to Heart and Home Collaborative for Overnight Warming location for unhoused individuals, and $10,000 (Emerging Needs grant) to lengthen the opening dates of the cold weather shelter season.

Outreach services to RV
dwellers
Awarded $70,360.00 to Karat School Project for outreach services to the RV Dweller community in Palo Alto.

Food security Awarded $94,174.00 to LifeMoves to reduce food insecurity for unhoused individuals by providing breakfast and lunch Monday-Friday.

Outreach & street medicine Awarded $241,422 (HSRAP) to Peninsula Healthcare Connections for outreach service, mental health support and street medicine for low income and unhoused individuals, along with operation of Palo Alto Food Closet.

Healthcare services Awarded $135,374 (HSRAP) to Ravenswood Family Health Network for healthcare services for low income and
unhoused Palo Altans and $10,000 (Emerging Needs grant) to update its Optometry care for higher quality of care to low- income and unhoused clients.

Miscellaneous services for
the unhoused
Awarded $735 (mini grant) for various services for the
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Safe Parking Program Funded $447,849 to expand safe parking operations at 2000 Geng Road, adding 10 oversized vehicle spaces
After receiving comments and feedback from Council at the study session, the County will continue to gather feedback from the community, including at an April 30th event at Mitchell Park, before bringing the final Plan to the County Board of Supervisors in late summer/early fall.

Following Board approval, staff will work with the County to bring the final plan back to Council for review and endorsement. For a more detailed timeline, please see Attachment C: Santa Clara County Community Plan timeline.

FISCAL/RESOURCE IMPACT
This report is informational and has no direct fiscal impact. However, the data informs future resource allocation, program planning, and service capacity needs.

STAKEHOLDER ENGAGEMENT
The City meets with the County monthly on topics relating to supportive housing, including the draft Plan. In addition to a variety of interviews, focus groups and steering committee meetings held since spring 2025 throughout Santa Clara County, there was also a north-county specific focus group held in Palo Alto focused on people with lived experience. As mentioned earlier in the report, there is an additional community engagement opportunity in Palo Alto on April 30, from 6-8 pm at Mitchell Park in the El Palo Alto room.

ENVIRONMENTAL REVIEW
This item is not a project as defined by the California Environmental Quality Act because is a study session with no action required by the Council.

ATTACHMENTS
Attachment A: Santa Clara County Draft Community Plan to End Homelessness Attachment B: Santa Clara County Office of Supportive Housing Calendar Year 2025 Report (Palo Alto)
Attachment C: Santa Clara County Community Plan Timeline APPROVED BY:

Ed Shikada, City Manager
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3.3.26 Draft
1 Santa Clara County: Community Plan to End Homelessness Focus Area 1 Prevent people from becoming homeless. Strategy A – Expand programs and investments to prevent people from becoming homeless. Sub-Strategies A1: Increase public and private funding for homelessness prevention programs. A2: Strengthen and sustain a high-impact homelessness prevention system. A3: Align policy and affordable housing investment to improve housing stability for households at-risk of homelessness. Strategy B – Ensure services are effective to prevent people from becoming homeless. Sub-Strategies B1. Prevent evictions through early identification, tenant protections, and system coordination. B2: Enforce fair housing protections and increase access to legal services to combat housing discrimination. B3: Leverage health care resources to prevent homelessness. Strategy C – Enhance coordination across systems to prevent people from becoming homeless. Sub-Strategies C1: Prevent homelessness at discharge or system exit through coordination with health care or behavioral health institutions, foster care, or criminal legal systems.

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Draft 3.3.26 2
C2: Establish partnerships to increase income and employment for those at-risk of homelessness. C3: Strengthen partnerships with safety net services for a community-driven approach to preventing homelessness. Focus Area 2 Continue to house people and support them in retaining their housing. Strategy A – Increase and maintain a continuum of housing options that meets the need. Sub-Strategies A1: Increase public and private funding to build more permanent housing and implement system improvements. A2: Increase public and private funding to expand temporary housing capacity and implement system improvements. A3: Prioritize development of housing for extremely low-income individuals and families making 30% of Area Median Income or less and set joint targets. A4: Build up programs and services to reach geographically underserved areas of the county. A5 Strengthen and diversify permanent housing capacity and options to meet varied needs and acuity levels. A6: Strengthen and diversify temporary housing capacity and options, including Emergency Interim Housing (EIH), to meet varied needs and acuity levels. A7: Co-design innovative and inclusive housing and service models with people with lived experience that expand access to diverse, permanent housing solutions. Strategy B – Increase consistency, diversity, and quality of housing and services for people accessing the housing continuum. Sub-Strategies B1: Standardize high-quality service delivery and individualized care across the housing continuum.

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Draft 3.3.26 3
B2: All housing continuum programs are safe, healthy, and accessible to everyone. B3: Improve tenancy support for participants in permanent housing programs. B4: Invest in equitable workforce development programs for people with lived experience within the homeless system. B5: Promote skill-building and career advancement opportunities for people with lived experience within the homeless system. B6: Support the development and implementation of programs led by people with lived experience that provide peer support, housing navigation, and mentorship. Strategy C – Improve system coordination throughout the housing continuum. Sub-Strategies C1: Reduce returns to homelessness and program exits. C2: Increase coordination between property management and service providers to ensure housing stability. C3: Reduce housing search time and expand landlord capacity for scattered site housing programs. Focus Area 3 Strengthen access to care and services for people experiencing unsheltered homelessness. Strategy A – Build capacity and expand access to trusted, culturally responsive, and coordinated services and resources throughout Santa Clara County. Sub-Strategies A1: Identify sustainable funding for increased access to care and services for people experiencing unsheltered homelessness. A2: Prioritize peer-led and community-driven outreach and communications models to effectively serve underserved regions and populations who are historically underserved or overrepresented in the homeless system. A3: Improve system-wide access to real-time, understandable, and comprehensive resource information and availability.

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Draft 3.3.26 4
Strategy B – Increase consistency, variety, and quality of outreach, basic, and essential needs services. Sub-Strategies B1: Expand service delivery offerings for basic and essential needs and to support stability. B2: Ensure that service providers are equipped with the skills, capacity, and ability to effectively serve those in unsheltered situations. B3: Create a consistent, person-centered approach to address vehicular homelessness. B4: Connect impacted populations to culturally responsive services. Strategy C – Invest in approaches that improve outcomes and reduce harm for people living unsheltered and the community at-large. Sub-Strategies C1: Strengthen coordination between behavioral health, homeless service providers, and public safety partners to divert non-violent homeless-related calls away from law enforcement. C2: Expand re-entry and behavioral health services as alternatives to arrest or emergency room admission. C3: Decrease the number of people residing in encampments and reduce criminalization of homelessness for those who are unsheltered Focus Area 4 Center and invest in people with lived experience to lead and transform the homeless system. Strategy A – Expand the representation of people with lived experience in leadership roles and decision-making bodies. Sub-Strategies A1: Build capacity of local jurisdictions and organizations to increase lived experience in leadership roles and decision-making bodies A2: Create accessible and flexible leadership opportunities that consider varying interests, availability, and backgrounds Item 3
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Draft 3.3.26 5
A3: Reduce structural barriers to participation. Strategy B – Build leadership capacity and advancement pathways for people with lived experience. Sub-Strategies B1: Provide opportunities such as mentorship and education for people with lived experience to establish pathways for leadership advancement. B2: Support transitions from advisory roles to formal decision making and leadership positions. B3: Advance equity in hiring, advancement, and retention of people with lived experience. Strategy C – Equip homeless system partners to effectively partner with people with lived experience. Sub-Strategies C1: Establish standards and best practices to support authentic lived experience engagement C2: Formalize processes to regularly evaluate the quality and depth of lived experience engagement and use findings to drive improvement. C3: Develop clear accountability measures to transparently demonstrate how lived experience input informs decisions and system change.

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City of Palo Alto Report, CY2025 (January 1, 2025 to December 31, 2025) Office of Supportive Housing, Santa Clara County
Santa Clara County Overview
Homelessness in Santa Clara County and the City of Palo Alto Measure of Homelessness
Measures of Homelessness (and Housing Placements)
Currently on the Community Housing Queue, as of January 30, 2026 Homeless in CY2025: Total VI‐SPDAT assessments completed in CY2025 The CY2025 Santa Clara County Supportive Housing System (Active program enrollments during CY2025) Households
Project Type Enrolled Housed (if applicable) Enrolled Housed (if applicable) Enrolled Housed Permanent Supportive Housing (disability required) 4,556 4,331 219 214 4.8% 4.9% Rapid Rehousing 1,679 1,276 74 57 4.4% 4.5% Emergency Housing Voucher Program 653 642 26 26 4.0% 4.0% Emergency Shelter 5,102 NA 272 NA 5.3% NA Transitional Housing 529 NA 16 NA 3.0% NA Safe Parking 550 NA 72 NA 13.1% NA Street Outreach 5,194 NA 187 NA 3.6% NA Housing Problem Solving 4,530 NA 203 NA 4.5% NA Services Only (Includes UPLIFT) 8,944 NA 563 NA 6.3% NA Homelessness Prevention 3,121 NA 29 NA 0.9% NA Emergency Shelter enrollments have increased as the capacity of shelter programs increased from 2,158 units in December 2024 to 2,968 units in December 2025.

Santa Clara County
10,711 people were experiencing homelessness
in Santa Clara County (an increase of 8% from
9,903 in 2023)
∙         7,472 (70%) of them were unsheltered and
3,239 (30%) were sheltered
Santa Clara County
5,311 households
8,614 households
o   3,858 households requested housing
o   2,012 households were placed in permanent
City of Palo Alto
418 people were experiencing homelessness in
the City of Palo Alto  (an increase of 103% from
206 in 2023)
∙         399 (95%) of them were unsheltered
City of Palo Alto Affiliated
187 households
297 households
o   154 households requested housing assistance
Notes:

Only Head of Household data are shown for these reports as planning for housing developments is done at the household level.

Households may be enrolled in more than one program type within the reporting period.

Homelessness Prevention city affiliation definition is based on the current zip code of the head of household at program enrollment. o 71 households were placed in permanent
As we are implementing effective solutions and slowing the growth of the crisis, Santa Clara County saw a 5% decrease in CY2025 in homeless inflow (people seeking homelessness assistance for the first time) compared to CY2024 and a 19% decrease in homeless inflow since CY2019 (the baseline year for the Community Plan). We must summon the collective will and resources to not only respond to the current crisis and scale our successful housing strategies, but also address and eliminate the root causes of homelessness in our community. By pooling our resources and coordinating our efforts, each city’s investment will be multiplied and will maximize our efforts to expand the supportive housing system and end homelessness in Santa Clara County. We hope this bi‐annual report will support your City in meeting the need in your jurisdiction, as well as connect your strategies to county‐wide efforts. • 27,037 people (19,243 households) were served through temporary housing which consists of emergency shelter, transitional housing, and safe parking • Supportive Housing (i.e., Permanent Supportive Housing and Rapid Rehousing) capacity increased by 29% with a total of 6,400 units/subsidies and 1,041 units in the pipeline • Temporary housing (Emergency shelter, Transitional housing, and Safe Parking) capacity increased by 82% with a total of 3,420 units and over 280 shelter units in the pipeline Link to most recent progress report: 2020‐2025 Community Plan to End Homelessness Through a collective impact response implementing the 2020‐2025 Community Plan to End Homelessness, Santa Clara County housed over 3,300 people (about 2,012 households) in CY2025. This continued progress speaks to the efforts of partners working collaboratively on shared goals.

Since January 2020 (through December 2025):
• 20,830 people were connected to permanent housing (12,362 households) • Prevention programs reached 38,060 at‐risk people (20,341 households) Percent of Total SCCCity of Palo Alto Affiliated
Point‐in‐Time Count, January 2025
System Inflow (First time VI‐SPDAT) & Outflow (Housing Placements), CY2025 Santa Clara County
Summary Charts Page 1 of 2
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Summary Chart of City of Palo Alto Affiliated Program Enrollments Project Type Enrolled
Homelessness Prevention 29
Services Only (Includes UPLIFT) 563
Housing Problem Solving 203
Street Outreach 187
Safe Parking 72
Transitional Housing 16
Emergency Shelter 272
Emergency Housing Voucher Program 26
Rapid Rehousing 74
Permanent Supportive Housing (disability required) 219
29 563
203
187
72 16
272
26 74
219
0 100 200 300 400 500 600
HOMELESSNESS PREVENTION
SERVICES ONLY (INCLUDES UPLIFT)
HOUSING PROBLEM SOLVING
STREET OUTREACH
SAFE PARKING
TRANSITIONAL HOUSING
EMERGENCY SHELTER
EMERGENCY HOUSING VOUCHER PROGRAM
RAPID REHOUSING
PERMANENT SUPPORTIVE HOUSING (DISABILITY REQUIRED)
City of Palo Alto: Household Program Enrollments during CY2025 Summary Charts Page 2 of 2
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Homeless Inflow ‐ First Time VI‐SPDAT (Households)
Calendar Year Total Homeless Inflow
(Santa Clara County)
City of Palo Alto
Affiliated Inflow
Percent of
Total
2019 4,744 138 2.9%
2020 3,419 139 4.1%
2021 3,156 173 5.5%
2022 3,440 153 4.4%
2023 4,267 162 3.8%
2024 4,071 126 3.1%
2025 3,858 154 4.0%
Households Placed in Permanent Housing
Calendar Year Total Housed (Santa
Clara County)
City of Palo Alto
Affiliated Housed
Percent of
Total
2019 1,947 87 4.5%
2020 2,099 80 3.8%
2021 1,943 65 3.3%
2022 2,060 64 3.1%
2023 2,509 80 3.2%
2024 2,234 65 2.9%
2025 2,012 71 3.5%
City of Palo Alto Affiliated Households
Homeless Inflow Housed
2019 138 87
2020 147 80
2021 180 65
2022 165 64
2023 168 80
2024 127 65
2025 154 71
138 147
180
165 168
127
154
87 80
65 64
80 65 71
2019 2020 2021 2022 2023 2024 2025
City of Palo Alto: Homeless Inflow and Permanent Housing Placements
Homeless Inflow
Housed
Trends Page 1 of 1
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Demographics for 297 VI‐SPDAT Assessments Completed in CY25, City of Palo Alto:

This represents an indicator of homelessness in CY25 for households affiliated with the City of Palo Alto Note: Data not shown for groups with fewer than 11 respondents Permanent
Supportive
Housing, 146,
49%Rapid Rehousing,
131, 44%
Minimal Range,
20, 7%
By Level of Need (Based on VI‐SPDAT Score)
4%, 11
4%, 11
4%, 12
8%, 25
22%, 64
27%, 79
32%, 95
0 2 04 06 08 0 1 0 0
Jail (Completed a JD‐VI‐
SPDAT)
Other/ Data not collected
Transitional Housing
Couch Surfing
Shelters/ Safe Haven/ Motel
Outdoors
Car/RV/Trailer/Van
Where do you sleep most frequently?
Demographics Page 1 of 7
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8%, 23
15%, 44
22%, 64 22%, 63
18%, 52 17%, 51
0 10
20 30
40 50
60 70
18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 or Above By Age Tier
55%, 163
14%, 41
11%, 33
8%, 25
11%, 34
0 20 40 60 80 100 120 140 160 180
2 years or more
1 ‐ 2 years
6 months to 1 year
3 ‐ 6 months
Less than 3 months
How long has it been since you lived in permanent stable housing? Demographics Page 2 of 7
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Single Adults,
237, 80%
Families with
Children, 44,
15%
Single Youth and Young
Adults, 16, 5%
By Household Type
Man, 180, 61%
Woman/
Additional
Gender
Identities, 117,
39%
By Gender
Demographics Page 3 of 7
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5%, 16
8%, 25
27%, 79
34%, 102
32%, 95
0 20
40 60
80 100
120
American Indian,
Alaska Native,
or Indigenous/ Other
Asian or
Asian American
Black, African
American, or African
Hispanic/
Latina/e/o
White (Non‐Hispanic/
Latina/e/o)
By Race and Ethnicity (Multiple Responses Allowed)
15%, 44
29%, 86
30%, 88
62%, 185
0 50 100 150 200
Drinking or Drug Use Cause Lose Housing
Mental Health or Brain Issues Affect Housing
Physical Disability Limit Housing Options
Homelessness caused by abuse or trauma
By Self‐Reported Disability/Vulnerability (VI‐SPDAT)
Demographics Page 4 of 7
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Demographics for 8,614 Total VI‐SPDAT Assessments Completed in CY25 in Santa Clara County These charts provide information if you would like to compare individual city results with results for the entire county.

Note: Data not shown for groups with fewer than 11 respondents Permanent
Supportive
Housing, 5,273 ,
61%
Rapid
Rehousing,
2,810 , 33%
Minimal Range,
531 , 6%
SCC: By Level of Need (Based on VI‐SPDAT Score)
3%, 263
4%, 337
6%, 492
8%, 656
19%, 1,600
22%, 1,887
39%, 3,379
‐ 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Other/ No Response
Transitional Housing
Jail
Couch Surfing
Shelters/ Safe Haven/ Hotel/ Motel/ Treatment Facility
Car/RV/Trailer/Van
Outdoors
SCC: Where do you sleep most frequently?
Demographics Page 5 of 7
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1%, 61
62%, 5,357
13%, 1,101
8%, 657
6%, 549
9%, 737
2%, 152
‐ 1,000 2,000 3,000 4,000 5,000 6,000
Data not collected
2 years or more
1 ‐ 2 years
6 months to 1 year
3 ‐ 6 months
1 week ‐ 3 months
Less than a week
SCC: How long has it been since you lived in permanent stable housing? 9%, 812
19%, 1,664
25%, 2,183
20%, 1,728
17%, 1,471
9%, 745
‐
500
1,000
1,500
2,000
2,500
18 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65 or Above By Age Tier
Single Adults,
6,790 , 79%
Families with
Children, 1,287
, 15%
Single Youth
and Young
Adults, 537 ,
6%
SCC: By Household Type (Based on VI‐SPDAT Type)
Demographics Page 6 of 7
Item 3
Attachment B - Santa Clara
County Office of Supportive
Housing Calendar Year 2025
Report (Palo Alto)

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Man, 5,237 ,
61%
Woman, 3,263
, 38%
Additional
Gender
Identities, 114
, 1%
SCC: By Gender
7%, 608 7%, 569
15%, 1,301
53%, 4,527
1%, 47 2%, 180
24%, 2,107
‐
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
American Indian,
Alaska Native,
or Indigenous
Asian or Asian
American
Black, African
American, or
African
Hispanic/
Latina/e/o
Middle Eastern
or
North African
Native Hawaiian
or
Pacific Islander
White (Non‐
Hispanic/
Latina/e/o)
SCC: By Race and Ethnicity (Multiple Responses Allowed) 27%, 2,356
29%, 2,525
35%, 3,009
67%, 5,757
‐ 1,000 2,000 3,000 4,000 5,000 6,000 7,000
Drinking or Drug Use Cause Lose Housing
Physical Disability Limit Housing Options
Mental Health or Brain Issues Affect Housing
Homelessness caused by abuse or trauma
SCC: By Self‐Reported Disability/Vulnerability (VI‐SPDAT) Demographics Page 7 of 7
Item 3
Attachment B - Santa Clara
County Office of Supportive
Housing Calendar Year 2025
Report (Palo Alto)

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Notes and Definitions
•      Enrollment and assessment data is from HMIS (Homeless Management Information System) •      Inflow:  First time a person/household completes a VI‐SPDAT assessment (Note that only the head of household of a household with children is instructed to take the Family VI‐SPDAT assessment) •      Outflow: Households placed in permanent housing (a move‐in date in a housing program or an exit to a permanent housing destination from a non‐housing program). Total (Santa Clara County) numbers include HUD‐ VASH housing (PSH) placements but city‐level data does not include most HUD‐VASH clients (since city affiliation Notes about City Affiliation:
•       City affiliation is based on client self‐reported data from 4 city affiliation questions (provided during an assessment) and one program enrollment field:
o   In which city do you spend most of your time?
o   Which city did you live in prior to becoming homeless? o   If you are employed, in which city is your work place? o   If you (or your children) go to school, in which city is your school? o   Zip Code of last permanent address (Program Enrollment) •     Zip Codes used in the analysis for the City of Palo Alto: 94301, 94302, 94303, 94304, 94306, 94309 •       City affiliation for homeless inflow and Community Housing Queue data is based on VI‐SPDAT questions only. •       City affiliation for housing placements is based on the most recent VI‐SPDAT assessment and program enrollment (zip code of last permanent address).
•       City affiliation for most program enrollments is based on the most recent of any assessments that have a city affiliation questions (VI‐SPDAT, Community Hotline/Triage, Housing Problem Solving, Homelessness Prevention) and program enrollment (zip code of last permanent address). •       City affiliation for Housing Problem Solving is based on the Housing Problem Solving Assessment 4 city •       City affiliation for Homelessness Prevention is based on Zip code of current address at program enrollment. •       Street Outreach enrollments do not include Safe Parking enrollments as they are reported separately. •     Housing Problem Solving services include financial assistance, mediation, and attempts by case managers in person or by phone.
•       Homelessness Prevention includes only HPS‐DH and HPS‐OSH (EAN) programs.

Note about Race and Ethnicity
With the new 2024 HMIS data standards, Race and Ethnicity is now one question (previously it was 2 questions) and Hispanic/Latina/e/o was added to the list of Race and Ethnicity options as well as Middle Eastern/North African. Clients may choose more than one race and ethnicity option. We show the responses for each race and consequently; the numbers do not add up to 100%.

Notes Page 1 of 1
Item 3
Attachment B - Santa Clara
County Office of Supportive
Housing Calendar Year 2025
Report (Palo Alto)

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1 2025- 2030 COMMUNITY PLAN TIMELINE
Spring 2025 – Summer/Fall 2026
Onboarding of Steering
Committee
Qualitative & Quantitative
Analysis
Spring 2025
Qualitative Data Collection
Steering Committee drafts Sub-
Strategies & Tasks
Engagement with Cities
Summer 2025
Continued engagement with
Cities
Convene lived experience work
group
Fall 2025
Engagement with Cities on Draft
Plan
Steering Committee finalizes Draft
Plan
Winter 2025–2026
Community Input on Draft Plan
Begin Drafting Sub-Regional
Plans
Finalize Plan based on
Community Input
Spring 2026
CoC Board adopts Plan
Endorsement from Jurisdictions
Year 1 Implementation Begins
Summer - Fall 2026
Item 3
Attachment C - Santa Clara County Community
Plan Timeline

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2 NEXT STEPS
June – Dec. 2026
Mar. – May 2026
Mar. – May 2026 Community Input Review of full
draft plan
Coordinate
feedback from
City leaders, lived
experience &
constituents
Finalize Plan &
Develop Sub-
Regional City
Plans
Finalize plan
based on
Community Input
Develop action
steps and metrics
based on regional
needs
Ensure alignment
with existing City
Plans & Strategies
Plan Adoption
and Endorsement
by County and
Cities
CoC Board
Adoption (June)
Execute process to
obtain BOS and
City Council
endorsement
Plan for
implementation
Item 3
Attachment C - Santa Clara County Community
Plan Timeline

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CITY COUNCIL
Staff Report
From: City Manager
Report Type: STUDY SESSION
Lead Department: Planning and Development Services
Meeting Date: April 20, 2026
Report #: 2603-6074
TITLE
910 Webster Street [26PLN-00026]. Request for Council Prescreening to Rezone the Subject Property from RM-20 to Planned Community/Planned Home Zoning and to Allow Construction of 70 Residential Units in a Seven-Story Structure. CEQA Status: Not a Project.

RECOMMENDATION
Staff recommends that Council conduct a prescreening and provide informal comments regarding the applicant’s request to rezone 910 Webster Street from Low Density Multiple- Family Residence District (RM-20) to Planned Community/Planned Home Zoning (PHZ).

Comments provided during the prescreening process are not binding on the City nor the applicant.

EXECUTIVE SUMMARY
This prescreening is a request by the applicant to rezone the subject property, which is currently zoned Low Density Multiple-Family Residence District (RM-20) to Planned Home Zoning (PHZ). 1 The project includes deconstruction of an existing 24-unit apartment complex and redevelopment of the 1.15 acre site with 70 residential condominium or apartment units, 20% of which would be provided at below market rate.

In accordance with Palo Alto Municipal Code (PAMC) Section 18.79.030(A), a prescreening review is required for legislative changes, including rezoning, prior to submittal of a formal application. Prescreenings are intended to solicit early feedback on proposed projects and, like all study sessions, cannot result in any formal action. Since this proposal may return to the City Council as a formal application, Councilmembers should refrain from forming firm opinions supporting or opposing the project.
1 Referred to in this report as "Planned Home Zoning" to emphasize the focus on housing as the benefit to the community. PAMC Section 18.38, which outlines the requirement and process for Planned Community (PC) Zoning, remains the underlying code supporting application of this policy.

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Following this prescreening, the applicant may choose to file a formal application to amend the zoning for the site. Planned Community Rezoning applications require an initial review by the Planning and Transportation Commission (PTC) followed by a formal recommendation from the Architectural Review Board, a formal recommendation from the PTC, and Council’s final decision as set forth in PAMC Chapter 18.38.

BACKGROUND
On February 3, 2020, Council unanimously endorsed using Planned Home Zoning (PHZ) for housing and mixed-use housing projects to help spur housing production. In exchange for deviation from the development standards, the project must include at least 20% of the housing units as deed restricted across a range of income levels, or an equivalent amount of affordability based on a menu of options.

Project Description
The preliminary schematic drawings, included in Attachment E, are conceptual, as is appropriate at this stage of project consideration. As shown in these schematic drawings, the applicant is proposing an approximately 135,073-square-foot multi-family residential condominium and apartment building with 70 units on a 1.15-acre parcel (50,000 square feet).

The units would be a mix of one-bedroom (6), two-bedroom (61), and three-bedroom (3) units.

The proposed project would have a lot coverage of approximately 24,018 square feet (48%).

The proposed seven story building includes two levels of underground parking, including 130 vehicular parking spaces and 119 bicycle parking spaces. A portion of the ground floor would contain indoor common areas, including a dining hall and a fitness center. A library and terrace lounge would be provided on the seventh floor for residents’ use. The proposed height is 81 feet and six inches to the top of the roof with a cupola that extends to 92 feet and nine inches.

Surrounding Uses
This property is located at the corner of Channing Avenue and Webster Street. The ten-story Channing House Senior Living Community (zoned PC-8659) is located across the street to the west. The property at 899 Webster Street contains a two-story apartment building (zoned RM- 20) located on the opposite corner to the north. Alta Housing’s two-story Webster Woods Apartments (zoned PC-2836) are located across the street to the east. The property at 532 Channing Avenue contains a three-story condominium building containing nine units (zoned RM-20) located to the southwest. There are eight smaller parcels (zoned R-1 & R-2) to the southeast of the subject site, which are being used for single-family, two-family, and multi- family residential uses within one- and two-story buildings.

ANALYSIS
Staff will prepare a thorough analysis of the Zoning Code and Comprehensive Plan compliance upon submittal of a formal application, if filed. A review of the conceptual plans, below, Item 4
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summarizes staff’s preliminary review of the proposal and highlights key policy considerations associated with the applicant’s request.

Comprehensive Plan Compliance
The Comprehensive Plan Land Use Designation of this site is Multiple-Family Residential. High- density housing is identified as an allowed use in some locations within this land use designation. Net densities will range from 8 to 40 units per acre. Density should be on the lower end of the scale next to single-family residential areas. Densities higher than what is permitted may be allowed where measurable community benefits will be derived, services and facilities are available, and the net effect will be consistent with the Comprehensive Plan.

This property is not identified as a Housing Inventory site in the City’s Housing Element. If the proposed project were to move forward, the housing units it creates would effectively increase the City’s Regional Housing Allocation Needs (RHNA) buffer.

Zoning Compliance
For Planned Community/Planned Home Zone (PHZ) rezoning projects, Council has the authority to set the parameters for most development standards, which would be reflected in the tailored ordinance for the new PHZ District. However, for informational purposes, Attachment B compares the development standards under the current RM-20 zone district with the proposed project to assist Council in considerations of how these deviations relate to the proposed public benefits of the project.

The applicant is requesting the following deviations from the existing RM-20 zone district development standards:
A 2.69:1 FAR where a maximum of 0.5 FAR is allowed for multi-family residential use; 48% lot coverage where a maximum of 35% is allowed (an additional 5% is allowed for covered patios and overhangs);
81 feet and six inches tall where a maximum of 35 feet in height is allowed (This does not include the height of the cupola, which extends to 92 feet and nine inches); An interior side yard and rear yard daylight plane with a 10-foot initial height and 65- degree angle where a 10-foot initial height and 50-degree angle is required; and 130 vehicle parking spaces where 140 parking spaces are required (~7% reduction).

The project has not yet been evaluated for consistency with the objective standards set forth in PAMC Chapter 18.24 as the conceptual plans do not provide sufficient information to prepare a complete analysis. As a PHZ application, the project may deviate from these standards in exchange for public benefits. A complete analysis of consistency with these standards would be prepared for informational purposes as part of any formal application. In particular, objective standards related to privacy and daylight plane when adjacent to low-density residential uses would be evaluated closely.

PC Special Requirements
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The project would be subject to special standards for PC districts under PAMC Section

18.38.150(c), (d), and (e). Based on the information provided, the project is not consistent with (e), and consistency with (d) cannot be determined. Staff requests that Council provide feedback on each of these areas.

Setback Relative to Neighboring PC Districts (d)
The project proposes 10-foot setbacks on both sides, but the neighboring PC districts appear to maintain significantly greater setbacks. Channing House (850 Webster Street) appears to be set back approximately 30 feet from its property line. The closest buildings at 601 Addison Avenue average approximately 8.3 feet of setback facing Webster Street, though the applicant has not provided formal setback documentation for either neighboring PC. Staff cannot fully evaluate consistency with this standard without that information. Staff requests that Council provide feedback on whether the applicant should be required to provide formal setback documentation for neighboring PCs before a formal application moves forward, and on whether the proposed Channing Avenue setback appears appropriate given Channing House's apparent setback.

PAMC Section 18.38.150(d) requires that minimum yard requirements be at least as restrictive as those of the most restrictive residential district opposite each site line. Each PC district has its own unique setbacks established in its approved plans or authorizing ordinance.

Daylight Plane Along Side and Rear Property Lines (e)
The project proposes a 65-degree daylight plane angle where 50 degrees is required. This steeper angle allows the building mass to encroach further into the daylight envelope than the code standard permits and in close proximity to lower-density residential uses to the south and southeast. The project is not consistent with this standard. Staff requests that Council provide feedback on whether the proposed daylight plane deviation is acceptable as part of a PHZ, or whether the applicant should be expected to bring the angle into conformance.

PAMC Section 18.38.150(e) requires the daylight plane to begin at a 10-foot initial height and rise at a 50-degree angle until reaching the applicable height limit, or to match the daylight plane requirements of the most restrictive abutting residential district. If the residential daylight plane option is selected, the setback regulations of that adjoining district apply as well.

Housing Incentive Program or State Density Bonus Law Alternatives As an alternative to the PHZ process the applicant could consider two options. One option would be to utilize the Housing Incentive Program (HIP) process, which allows for some deviations to the base zoning standards. These include increases in FAR to 2:1, lot coverage to 70%, and height to 40 feet. It also allows for a reduction in parking to 102 spaces. This would require reducing the scope of the project (both the scale, quantity, and size of the building and proposed units).

Alternatively, the applicant could propose a State Density Bonus Law project and may request waivers and concessions from certain standards in accordance with State Density Bonus Law Item 4
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requirements. The RM-20 zone has a maximum density of 20 units per acre. The highest density achievable under State Density Bonus Law would be 40 units per acre (with a 100% bonus). This is well below the 61 du/ac proposed; additionally, the applicant would be required to provide a significantly higher percentage of the units at BMR in order to achieve this density increase in addition to providing those units to lower income levels.

Multi-Modal Access & Parking
Valley Transit Authority (VTA) bus line 21 is the nearest bus line to the project site (200-300 feet to closest stop). The VTA 21 line runs between the Stanford Shopping Center and the Santa Clara County Transit Center. Buses run with a 30-minute headway between the hours of 6:00 AM to 9:00 PM. The Palo Alto Caltrain Station is located approximately one mile from the project site. This project has not yet been analyzed for consistency with the City’s Bicycle and Pedestrian Transportation Plan and other transportation policies such as Council’s Local Transportation Impact Analysis Policy adopted on June 15, 2020 (CMR 11256). This analysis would be conducted as a part of any formal application and reviewed by the Office of Transportation.

Pedestrian Access
The primary pedestrian entrance is at the corner of Webster Street and Channing Avenue with additional private street front entries for ground floor units.

Parking
All parking is proposed in two levels of below grade parking. The vehicle entrance ramp to access the underground parking levels would be provided from Webster Street near the interior side property line through a single entrance/exit. Of the 130 proposed parking spaces, 60 would be in tandem configuration. Tandem parking is allowed in multiple-family residence districts for any unit requiring two parking spaces, provided that both spaces in tandem are intended for use by the same residential unit. Staff notes as well that in accordance with Assembly Bill (AB) 1317, housing projects are required to unbundle parking from the units. Therefore, tandem configurations on large numbers of parking spaces is not desirable since some of these spaces may not be able to be leased if a single unit does not intend to pay for two parking stalls. The code requires that not more than 25% of the required parking spaces may be in a tandem configuration. Five stalls (3%) are proposed as EVSE ready. No car loading space is proposed, where one is required for residential buildings with more than 50 units.

Bicycle parking is not shown on the plans but appears to be in the below grade parking garage.

Access to bike parking will need to be shown in the plans and should be located near street access points to promote bike usage. One hundred and nineteen (119) bike parking spaces are proposed, which exceeds zoning code requirements (70). A bike room could be designed to meet the requirements of a Restricted-Access Bicycle Enclosure as defined in PAMC

18.54.060(a)(2)(B). The plans don’t differentiate between proposed short-term and long-term bicycle stalls.

Compliance with PAMC Title 9.68 (Rental Protection Requirements) Item 4
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The proposal would require the demolition of 24 existing apartment units to be replaced by a potential mix of 70 condominium and apartment units. When existing residential rental units are being demolished, the landlord must comply with the City’s Rental Protection Requirements under PAMC Chapter 9.68 including proper noticing and relocation assistance. In particular, for a just-cause no-fault eviction, the landlord must offer the existing tenants relocation assistance in one of two ways:

1. Assist the renter to relocate by providing a direct payment to the tenant as described in PAMC Section 9.68.050(b)(3); or

2. Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due.

Should the landlord offer to provide a direct payment to the tenant, the amount shall be equal to one month of the renter’s rent that was in effect when the landlord issued the notice to terminate the tenancy and must be provided within 15 calendar days of service of the notice.

This amount shall be credited against any other relocation assistance required by any other law.

Should the landlord fail to strictly comply with these requirements, it will render the notice of termination void.

Inclusionary Requirement and Jobs Housing Imbalance
The intent of limiting PHZ projects to residential and residential mixed-use is to address the job/housing imbalance and to support increased housing production within the City, consistent with the City’s RHNA allocation. PHZ projects are required to provide more housing than jobs on site. As this is a 100% residential project, no new jobs would be created.

The project is required to provide 20% of the units at Below Market Rate at a range of income levels in accordance with Council’s requirements for projects seeking to rezone using the PHZ process. Option 2 presented in the June 23, 2020, Council staff report3 provides greater weight and flexibility towards providing very-low income units. At this time, the applicant is proposing the equivalent of 20.1% BMR units (12 units) distributed throughout the project, but noted to staff that they may utilize a different option if/when they submit a formal application. The plans don’t identify specific locations for the BMR units, but a breakdown of how many units are proposed at the various income levels has been provided in the table below. Per the Affordable Housing Plan Specifications Form (Item 3), the applicant shall provide a detailed description and chart of each BMR unit's: size, and type relative to the total number of units to verify the project meets the 20% threshold.
3 June 23, 2020 Council staff report. https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2020/id-10715.pdf Item 4
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Source: Attachment C

FISCAL/RESOURCE IMPACT
There is no fiscal or resource impact associated with the recommendation in this report. A future project, if filed, approved and constructed, would generate higher property tax revenue and add residents that would like support in some measure the local economy. A future project would also be subject to development impact fees to address its effects on public services and infrastructure. The precise magnitude of these impact fees will be refined as the application and proposed project advances.

STAKEHOLDER ENGAGEMENT
The Palo Alto Municipal Code requires notice of this public meeting be published in a local paper and mailed to owners and occupants of property within 600 feet of the subject property at least ten days in advance. Notice of a public hearing and postcard mailing for this project was published in the Daily Post on April 10, 2026, which is 10 days in advance of the meeting.

As of the writing of this report, staff received 11 written comments in Attachment D. The comments received by staff generally resolve around the following concerns:

1. Concerns with the height and scale of the proposed building in the context of the surrounding area and impacts on adjacent shorter structures.

2. Concerns on impacts to the quality of life, sunlight, and privacy impacts for existing residents and tenants of the surrounding properties.

3. Concerns around increases to traffic and congestion by increasing the density to the property; especially as it relates to senior citizens and children from nearby schools

4. Concerns around the availability of parking stalls for the site for future tenants

5. The first noted impacts on themselves and their tenants during and after construction while the second noted concerns around growing congestion and potential safety impacts that can create for seniors living at Channing House (850 Webster Street) which is across the street from this project.

6. Concerns surrounding daily operational impacts (noise, odor, etc.) from dining hall on adjacent uses.

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Another member of the public called staff and expressed concerns about scale and transition to low density residential uses next to the site as well as availability of daylight.

ENVIRONMENTAL REVIEW
The prescreening is a preliminary review process in which Councilmembers may provide comment, but no formal action will be taken. Therefore, no review under the California Environmental Quality Act (CEQA) is required at this time. A full review in accordance with CEQA would be initiated with the formal filing of a development application.

ATTACHMENTS
Attachment A: Location Map
Attachment B: Zoning Comparison Table
Attachment C: Applicant’s Project Description Letter
Attachment D: Neighbor Comments
Attachment E: Project Plans
APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 4
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24 Channing House
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HOMER AVENUE

COWPER STREET

CHANNING AVENUE
AD
WE

ADDISON AVENUE

WEBSTER STREET

CHANNING AVENUE

COWPER STREET
LANE 56
RM-20
PC-2836PC-8659 PC-2
Channing
House
This map is a product of the
City of Palo Alto GIS
This document is a graphic representation only of best available sources.

Legend
Special Setback Frontages
Park
School
abc Building Roof Outline
Underlying Lot Line
abc Easement
abc Lot Dimensions
Zone Districts
abc Zone District Labels
City Jurisdictional Limits:

Palo Alto City Boundary
Tree
Current Features
0' 127'

CITY OF PALO ALTO
IN
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94 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto smckay, 2026-03-12 11:49:27
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ATTACHMENT B

ZONING COMPARISON TABLE
910 Webster Street, 26PLN-00026
Table 1: COMPARISON WITH CHAPTER 18.13 (RM-20 DISTRICT), 18.14 (HOUSING INCENTIVE PROGRAM (HIP) and 18.38.150 (PC SPECIAL REQUIREMENTS)
Development Standards
Regulation Required Proposed Residential Project
Minimum Site Area, width and
depth
8,500 sf, 70 feet, 100 feet
None for HIP
50,000 sf (1.15 acres)
Minimum Front Yard 20 feet
10 feet for HIP
22 feet
Rear Yard 10 feet
10 feet for HIP
22 feet
Interior Side Yard 10 feet
10 feet for HIP
15 feet
Street Side Yard 16 feet
8 feet for HIP
22 feet
Max. Site Coverage 35% (17,500 sf)
70% for HIP
48% (24,018 sf)
RM-20 Max. Building Height 30 feet
40 feet for HIP
81 feet 6 inches
92 feet 9 inches (to top of cupola)
PC Special Requirements for
Setbacks
10 feet for interior side and rear 15 feet (side); 22 feet (rear) PC Special Requirements for
height
35 ft when within 150 feet of R-1,
no restriction otherwise.
81 feet 6 inches
92 feet 9 inches (to top of cupola)
Daylight Plane for side and rear lot
lines for sites abutting any R-1, R-
2, or RM-20 district.
10-foot initial height and 45-
degree angle
16-foot & 45-degree angle HIP
10-foot initial height and 65-
degree angle
PC Special Requirements for
Daylight Plane
10-foot initial height and 50-
degree angle
10-foot initial height and 65-
degree angle
Max. Floor Area Ratio (FAR) 0.5:1 (25,000 sf)

2.0:1 for HIP (100,000 sf)

2.69:1 (135,073)
Residential Density 20 du/ac per RM-20 Zone
40 du/ac for HIP
61 DU/AC
(70 units proposed)
Minimum Useable Open Space 150 sf per unit Open Space Provided: 13,606 sf + or 194 sf per unit
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Table 2: CONFORMANCE WITH CHAPTER 18.52 (Off-Street Parking and Loading) Type Required Proposed
Vehicle Parking 1 per unit 1 bedroom or Studio
2 per unit 2+ bedroom
128 spaces total
130 spaces proposed
Bicycle Parking 1 LT space per unit (70)
1 ST space per 10 units (7)
119 spaces
Loading Space 1 car loading space for a building
with 50+ units
None
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1 8 8 5 E l C a m i no R ea l, P a lo Al to , C A 9 4 3 0 6 • 6 5 0 3 2 2 2 2 8 8 • F AX : 6 5 0 3 2 2 2 3 1 6 • a rc hi tec ts @ c a rra sc o . c o m A P ro f e s sio na l C o rpo ra tio n

CARRASCO & ASSOCIATES

A R C H I T E C T S

PROJECT DESCRIPTION “910 WEBSTER STREET”

HIGH DENSITY RESIDENTIAL CONDOMINUM UNITS

Project Overview
The proposed development “910 Webster Street” is a high-density residential community designed to integrate seamlessly into the Downtown Palo Alto context. The project balances the objective of maximizing housing density with a sensitive architectural approach that prioritizes neighborhood compatibility, environmental sustainability, resident well-being and sense of community. Project will include 20% affordable housing units distributed throughout the project.

Massing, Solar Access, and Daylight Plane
The building’s envelope is the result of rigorous solar geometry analysis (refer to Sheets T.1.03 and T.1.04). To protect the solar impacts to adjacent properties, the design implements a 65-degree Daylight Plane on the South and West elevations. • Shadow Study: Our study confirms that this massing eliminates shading on building structures to the south and west after 10:00 AM during the Winter Solstice. • Contextual Sensitivity: Shading impacts on the Channing House are minimized by directing shadows toward unfenestrated walls, while winter evening shadows are largely intercepted by the existing mature canopy of along the sidewalk of Webster Woods Apartment complex on Webster Street.

Community and Pedestrian Orientation
“910 Webster” project is centered around a lushly landscaped central courtyard , anchored by four shade trees and a 12-foot-wide circulation veranda. • Active Ground Floor: Indoor common areas, including the dining hall and fitness center, are oriented toward the courtyard to foster social interaction. • Urban Interface: Ground-floor units feature private front yards and individual street- front entries, reinforcing a "row-house" pedestrian scale and activating the Webster Street sidewalk.
• Rooftop Amenities: A community library and terrace lounge provide diverse gathering spaces for residents.

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1 8 8 5 E l C a m i no R ea l, P a lo Al to , C A 9 4 3 0 6 • 6 5 0 3 2 2 2 2 8 8 • F AX : 6 5 0 3 2 2 2 3 1 6 • a rc hi tec ts @ c a rra sc o . c o m A P ro f e s sio na l C o rpo ra tio n
Sustainability and Energy Performance
The project aims for high energy autonomy, particularly regarding common area climate control.
• Integrated PV System: Photovoltaic panels are utilized as a functional architectural cornice, providing both renewable energy production and passive solar shading for the upper floors.
• Passive Climate Control: All balconies are equipped with operable Plantation Shutters , allowing residents to manually modulate natural ventilation, solar gain, and thermal comfort.

Privacy and Residential Interface
The floor plan is strategically programmed to respect the privacy of the adjacent low- density residential zone.
• Acoustic and Visual Buffers: Bedrooms are primarily located on the south elevation. • Movable Screening: The floor-to-ceiling plantation shutters on all balconies provide a customizable visual buffer, protecting the privacy of both building residents and neighbors.

Landscape and Tree Protection
Recognizing Palo Alto’s commitment to its urban forest, the project is designed around the preservation of existing tree health.
• Subterranean Setbacks: The underground garage is significantly set back (22’ on North, East, and West; 10’ on South) to ensure the root zones of neighboring trees remain undisturbed.
• Permeability: The design maximizes permeable surface area through the central courtyard and perimeter setbacks to manage stormwater runoff effectively.

Requested Concessions/Waivers/Incentives for Affordable Housing:

FAR: 2.69 proposed
Coverage: 50% proposed
Stories: Six-story proposed
Parking: 8% less vehicle parking
Daylight Plane: 65° proposed angle

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Project Description Letter

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From: Lauma Zunte
To: Sauls, Garrett
Cc: Aivars; Eriks Rungis; Indra Rungis; David Goldberg
Subject: Proposed Residencial Highrise
Date: Sunday, March 22, 2026 1:20:02 PM
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i
Dear Mr. Sauls,
My name is Lauma Zunte and I own a small four unit apartment on 569 Addison Avenue in Palo Alto.

Mr. David Goldburg reached out to me recently informing me of a proposed six story apartment complex going up just beyond my backyard fence.

A massive structure as proposed will have a huge impact on my apartment complex. First on my mind is the idea of having such a large structure right next to my small two story building.

Next is the impact on my residents when they go to the pool area that is right next to the common fence.The idea of six stories of prying eyes looking down on the pool area isn't too appealing. Additionally how it will impact the sun in the backyard is also a concern, A large project like this will involve untold months of demolition, clearing and then rebuilding. The noise and pollution alone will create a situation where many of my residents may choose to vacate their units. That will leave me in a financial crisis.

These are a few of my immediate concerns that I hope will be considered if this project moves forward.

Respectfully, Lauma Zunte
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From: Steve Ludvik
To: Sauls, Garrett
Subject: Development on corner of Webster and Channing Ave Date: Wednesday, April 1, 2026 1:37:38 PM
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i
Dear Garrett,
This letter is regarding the proposed 70 unit condominium development at the corner of Webster and Channing Ave.

The development is poorly conceived and the council should reject the proposal.

Channing Ave has become a heavily used thoroughfare between Alma and 101.

Adding congestion from more street parked cars, maintenance services and delivery services (such as DoorDash) traffic will create safety hazards. The crossing at Webster/Channing has already experienced safety events.

Safety:

The proposed development is across the street from Channing House which supports seniors who often walk in the neighborhood. Adding unnecessary risks to their safety is a potential major liability for the city.

I trust you are aware of the many lawsuits filed against the city, the outcome of which can far exceed any tax revenue or other perceived benefits to the city and its residents.

Please consider these factors in your approval process.

I hope that the City makes the correct decision and does not approve the development.

Thank you for your support in this matter
Sincerely,
Steve Ludvik
541 Channing Ave
Palo Alto CA 94301
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April 6, 2026
Garrett Sauls
Project Planner
City of Palo Alto
[email protected]
Subject: Concerns regarding the proposed 6-story development at 910 Webster St, Palo Alto, CA
Dear Mr. Sauls:

I am writing to you as an owner and resident at 532 Channing Ave, Unit 301, Palo Alto regarding a proposal that has been submitted to the city to develop a 6-story condominium building at 910 Webster St, Palo Alto. My unit sits next to the proposed condominium building.

As a direct neighbor, I have significant concerns about the scale of this project. Our building stands at 3 stories, and the current building at 910 Webster is 1-2 stories. A 6-story structure would tower over our existing building, leading to several immediate impacts (note: although positioned as a 6-story building, there is a 7th floor that includes a community library):
● Loss of Natural Light: Many of our units rely on skylights and natural sun exposure that will be permanently blocked by a building of this height. ● Privacy: The significant height disparity would overlook our private living spaces and common areas.
● Neighborhood Character: A building of this density is a massive departure from the current 2 and 3-story profile of our immediate block.

I am not opposed to new neighbors or a thoughtful development, but I believe this proposal is out of scale for this specific location. We are interested in advocating for a more balanced design—ideally limited to 3 stories —that respects the sunlight and privacy of the existing residents.

Thank you for considering my concerns. I can be reached at for any questions:
[email protected]
Mobile: 650-421-3202
Yours sincerely,
Eric Yuen
Owner and HOA Treasurer
532 Channing Ave, Unit 301, Palo Alto, CA 94301
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From: Deborah Dooley
To: Sauls, Garrett
Subject: 910 Webster Project
Date: Saturday, April 4, 2026 10:44:52 PM
CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

I am writing this letter in response to the proposed project at 910 Webster St.

The proposal suggests nearly tripling, 24 to 70 residents, the tenant population, and reducing the driveways from three to one. This one driveway in the center of a primary school corridor is unsafe and hazardous. This is going to maximize traffic problems, which already exist during school commuter hours.

The 900 block of Webster is a high-density and high-traffic area, both for cars and pedestrians. This block is next to Addison Elementary School and one of the primary entrances to the school campus.

The street, the parking, and the pedestrian traffic is extremely high during school commuter hours.

At this time, there are currently parking problems, and the street that the proposal suggests one driveway for both entrances and exits will make this unsafe for the student population.

Parking in this area is currently a problem due to over 100 Channing House employees parking on the streets, the Webster Wood, a high-density housing unit, tenant and guest parking on the streets, and Addison School parking on this block. As a private homeowner, there is often no parking available. This additional car parking will make parking a nightmare. Due to the single driveway, which will slow exiting, some tenants will use street parking, and guests will also park on the street.

I have attached photos of street parking to show the current parking status.

One driveway will slow garage parking traffic. This will result in more tenants parking on the street to avoid this.

I have attached photos showing the dense parking currently in this block This proposal is showing minimal concern for the people who currently live in this neighborhood.

The increase in traffic congestion, parking scarcity, noise pollution, environmental pollution, and the loss of natural sunlight to the neighborhood and its residents is at a high cost to current residents.

I live next door, 934 Webster. This proposed single driveway will be 15 feet from my bedroom windows. 140 tenants using this single driveway will create noise and environmental pollution in my home. What is my recourse?
There are enough congestion problems on this block without making what is already bad even worse. I encourage you to take a survey of school commute times to understand what a hazardous environment this proposal creates.

There is a significant loss of sunlight to all surrounding residents.

There is a significant loss of privacy to all surrounding residents.

There is a significant increase in environmental pollution for all existing residents.

This is a block that transitions from 2 and 3-story buildings to single-level homes.

Adding a six-story home is not appropriate for this site. The streets cannot accommodate this. A building with this many tenants needs to be on a street with four lanes of traffic, not in a high- impact, congested area.

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I have attached 3 parking pictures. These pictures are NOT during school commuting times.

Deborah Dooley
934 Webster Street
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From: David Goldberg
To: Sauls, Garrett
Subject: 910 Webster
Date: Friday, April 3, 2026 4:08:48 PM
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i
Dear Garrett Sauls,
This letter is regarding the proposed 70 unit condominium development at the corner of Webster and Channing Ave, which would replace the Webster Oaks Apartments. The site is a good location for more housing, because it can support an increase in density and at the same time be respectful of the lower density neighbors. But the proposed design doesn't take advantage of that opportunity: it does increase the density but it towers above the neighboring homes, casting a large shadow. I urge that in return for rezoning the property, the council require the developer to be more sensitive to us lower density neighbors.

Let me focus on the impacts on my own home, a condo bordering the west side of the proposed development, which has half the height and 1/3 the density.

On the plus side, the proposal has 1.86 parking spots/unit, which is more than the existing apartment complex. And although parts of the proposed building are only 10 ft from our joint property line, the primary exterior wall is 22' away. Also, the architect has updated the plan to add more trees to visually screen our properties from one another. This is all good. But there is virtually no step down toward our homes on the west side. We will be facing an almost straight 6-story vertical wall. As a consequence, in the summer, the morning sun won't shine on our building until after 10:30 am. The illustration titled "Height Transition" on page 4 of their plans gives a visualization of how much the new condo would tower over our condo.

None of this necessary, because there are designs for this site that would support a significantly increased density without having this negative impact on neighbors.

The residents of this neighborhood purchased their homes in the belief that although we have one very tall building (Channing House), the rest would be a mixed-use neighborhood with buildings topping out at three stories. The proposed 6-story project strikes me as more of an initial bargaining offer than a serious proposal that would balance the amount of extra density against harmful impact to the rest of the neighborhood.

In summary, please consider tying any rezoning with a requirement that the project be more suitable for this transitional location, by either lowering the height or having more step down.

David Goldberg
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532 Channing Ave #201
Palo Alto, CA
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From: Catherine Cohen
To: Sauls, Garrett
Subject: Opposition to Rezoning Proposal – 910 Webster Street (Channing & Webster) Date: Friday, April 3, 2026 4:44:24 PM
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i
Dear Members of the Palo Alto City Council,
I am writing to share my concerns regarding the proposed redevelopment of the Webster Oaks apartment building located at 910 Webster Street, at the corner of Channing Avenue and Webster Street.

I live at 503 Channing Avenue, at the corner of Cowper and Channing, just one block from the proposed site. Given my proximity, I experience firsthand the current traffic, parking, and safety conditions in this area.

The current proposal would replace an existing two-story, 24-unit apartment complex with a six-story, 70-unit condominium development, requiring rezoning of the site. While I support the need for additional housing in Palo Alto, I strongly oppose the rezoning of this site as currently proposed.

This project, in its current form, raises significant concerns related to neighborhood compatibility, safety, and infrastructure impacts.

Scale and Neighborhood Compatibility
A six-story building is not consistent with the surrounding one / two story homes, with only a few 3 story apartment complexes. A six-story complex will fundamentally alter the character of this neighborhood.

While Channing House is a 12-story structure nearby, it has been part of the community since the 1960s, and much of the surrounding neighborhood developed around it. It also functions more as a business/institutional use, bringing with it significant impacts, including more activity, delivery trucks, service vehicles, and emergency response vehicles blocking lanes.

Residents in this area are already dealing with the impacts of that scale and use. For those living closest to Channing House, noise and activity, particularly near the loading and service areas are disruptive, with deliveries sometimes occurring as early as 3:00 AM.

Introducing an additional high-density, multi-story development would further intensify these impacts and significantly change the dynamics of what is currently a residential neighborhood.

This proposal risks creating a precedent for additional large-scale buildings without appropriate transition in height or density. A six-story structure would be out of character and This message needs your attention
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disproportionately impactful in this setting.

Traffic, Safety, and Congestion
This area is already heavily impacted by traffic and presents real safety concerns, conditions that would be materially worsened by a development of this scale.

Channing Avenue is a key thoroughfare to 101, with an elementary school just one block away. Children frequently walk and bike through this area.

Vehicles traveling from Waverly toward Middlefield often exceed the 25-mph speed limit, making the Channing/Webster intersection particularly dangerous.

Channing House delivery / service trucks and emergency vehicles frequently block one lane of this one-way street, causing ongoing traffic and safety issues.

Residents of Channing House regularly walk in the neighborhood, further increasing the need for safe and predictable traffic conditions.

Adding a development of this scale will significantly increase traffic in the area, and those impacts will not be limited to Webster Street, they will spill over onto Channing and further worsen an already constrained and impacted situation.

The proposed development would significantly increase the number of residents and vehicles while consolidating access into a single driveway, which is likely to create additional congestion and bottlenecks at an already impacted intersection.

Parking and Delivery Impacts
Street parking in this area is already limited due to Channing House staff and visitors, school- related activity, and existing neighborhood demand.

Currently, delivery and rideshare vehicles can pull into the existing property. With a larger, denser development and fewer access points, these vehicles will likely double park on surrounding streets, increasing congestion and creating additional safety risks.

Commercial Use and Loading Dock Concerns
I strongly oppose the inclusion of a restaurant within this development, which introduces a commercial use into what is currently a residential area.

A restaurant will require a dedicated loading dock, which is proposed along Webster Street.

This loading area would be directly adjacent to existing homes, including a one-story residence, and near other neighboring properties. The noise associated with deliveries, trash pickup, and ongoing service activity would have a direct and negative impact on nearby residents.

In addition to increased traffic, this introduces an ongoing operational impact that is not consistent with the character of the neighborhood.

Construction Impacts
There are also important unanswered questions regarding construction logistics:

Where will construction vehicles be staged?
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Will workers be transported into the site, or will additional vehicles compete for already limited neighborhood parking? We have the RPP program in place in this neighborhood.

How will disruption to residents be minimized during construction? Given the scale of this project, these impacts will be significant and should be clearly addressed.

Housing Priorities
While I strongly support increasing housing supply in Palo Alto, this project does not appear to address one of the City’s most critical needs: affordable housing. Increasing density without meaningfully contributing to affordability raises important questions about how this project aligns with broader community goals.

For these reasons, I urge the City Council to deny the rezoning request as currently proposed.

I would strongly urge the City to work with the developer on a more balanced alternative, one that meaningfully increases housing while remaining compatible with the surrounding neighborhood. A reduced-scale development, such as a project limited to approximately three stories with appropriate transitions to adjacent properties, would be far more consistent with the character of the area and would mitigate many of the concerns outlined above.

Thank you for your time and consideration.

Sincerely,
Catherine Cohen
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From: Doris Stoessel
To: Sauls, Garrett
Subject: Opposition to the Rezoning Proposal - 910 Webster Street Date: Monday, April 6, 2026 10:01:35 AM
Dear members of the Palo Alto City Council:

I am writing this e-mail to share my concerns regarding the proposed redevelopment of the Webster Oaks apartment complex located at 910 Webster Street. But first let me introduce myself: my name is Doris Stoessel, and I have owned 533 Channing Avenue (one of 24 units in the five building Channing Place Homeowners' Association complex located at 501-547 Channing Avenue) since June of 1982.

I am opposed to redeveloping the Webster Oaks apartment complex for many reasons and am listing four major concerns highlighted below, each followed by a detailed explanation of that specific concern.

1. Too much additional traffic on four city streets: Channing Avenue, Addison Avenue, Homer Avenue, and Webster Street

Let's face it: replacing the 24 unit Webster Oaks apartment complex with a 70 unit complex is going to triple the number of cars currently entering and exiting the complex. I don't have an exact number, but because the residents of our 24 unit Channing Place HOA have roughly 40 vehicles, I am going to assume that the current residents of the Webster Oaks apartment complex also have roughly 40 vehicles. And doing the math leads me to believe that a 70 unit complex would therefore have 120 vehicles. These four city streets were not designed to support an additional 80 (120-40) vehicles each day.

2. Additional traffic will be a hazard to pedestrians on Addison Avenue, Webster Street, and Channing Avenue

Some residents on the 70-unit complex will connect each day from Middlefield to Webster via Homer Avenue and some will connect via Addison Avenue. There's a lot of slow-moving pedestrian traffic on Addison and Webster each morning and afternoon as children and parents walk to and from Addison Elementary School. And there's a lot of slow-moving pedestrian traffic on Webster and Channing as the residents of Channing House stroll around the neighborhood. Adding an additional 80 vehicles each day to this area can only lead to tragic accidents.

3. More (speeding) traffic on Channing Avenue

Channing Avenue is a major connector for Palo Alto residents who live between Alma and Middlefield, and in my opinion, there's already too much traffic on this two lane city street.

There are at least five stop signs along Channing at its western end, but there are no stop signs between Waverley and Middlefield, and drivers speed up along these three blocks despite the 25 mph speed limit. Fourteen of the 24 units in the Channing Place HOA complex enter/exit the complex via a narrow driveway separating our units from Channing House, and near- accidents occur too frequently as we pull onto Channing Avenue at a low speed. Adding up to an additional 80 vehicles each day to this area can only lead to accidents as we try to exit our complex.

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4. Lack of sufficient overnight parking spots on Webster Street and Channing Avenue

The 24-unit Channing Place HOA complex includes garages for its residents, but due to the small size of these garages, the residents have to park roughly 16 of their 40 vehicles on the street each night. By my estimate, the residents of the proposed 70 unit complex would end up having to park 50 (120-70) vehicles on the street each night, but there just aren't 50 parking spaces available. They will end up parking on residential streets south of Addison or forcing us to have to park overnight on residential streets of Addison.

In summary, the proposed complex at 910 Webster Street is too much large for our neighborhood and our city streets. Please do not approve it.

Thank you for your time and consideration.

Sincerely,
...Doris A. Stoessel
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From: Alfred
To: Sauls, Garrett
Subject: Regarding proposed condominium project at Webster Oaks Date: Friday, April 3, 2026 4:42:53 PM
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i
Mr. Sauls:

I reside on the corner of Cowper St and Channing Ave. in Palo Alto. I have lived here for over 36 years. After our brief phone conversation I have elected to submit my comments to you through this email. Please add my comments to the presentation to the City Council when they convene on April 20th, 2026.

In response to the proposed Webster Oaks condominium project I am opposed to the proposed condominium project for the following reasons:

There have been no six story structures permitted or built in the Professorville neighborhood in this century.

A project of this magnitude would be out of scale with the rest of the residential area and would set a precedent for additional large scale residential development in this neighborhood.

The area where the proposed condominium project is already congested with vehicle traffic, including delivery trucks, because both the Channing House and Addison Elementary School which are nearly adjacent to the proposed project.

The disturbance and disruption, both during the construction and in the operation of this large condominium project would severely impact the daily life of the seniors living at the Channing House.

Thank you for your time and consideration,
Alfred J. Mandel
915 Cowper St.

Palo Alto
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From: mountain view
To: Sauls, Garrett
Subject: Webster Oaks apartment building project
Date: Sunday, April 5, 2026 1:27:36 AM
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i
Hello Admins,
I am writing to formally express my disagreement with the proposed building project currently under consideration.

While I understand the intent to support development and growth, I would like to elaborate on several specific concerns regarding the proposed building project:

1. Parking and Traffic Safety: Street parking in this area is already severely constrained, with occupancy rates exceeding 95% on most days. Given the proximity to Addison Elementary School, additional residential units would further intensify congestion. This will make student drop-off and pick-up significantly more difficult and could increase safety risks for children due to heavier traffic and reduced visibility.

2. Impact on School Capacity: Many families choose to live in this neighborhood because of the quality of the local public schools. Increasing the number of housing units may lead to a rise in student enrollment that exceeds the current capacity of nearby schools, potentially affecting class sizes, resources, and the overall quality of education in the community.

3. Safety Considerations: Taller, denser buildings near an elementary school may introduce additional safety and security concerns. It is important that any development near schools carefully assess potential risks and ensure appropriate measures are in place to protect students and staff.

I believe that these factors have not been fully addressed and warrant more careful evaluation before any decisions are finalized. I respectfully urge the relevant authorities to reconsider or further review the proposal, taking into account community feedback and long-term consequences.

I appreciate your time and attention to this matter and hope that my concerns will be given due consideration.

Sincerely,
VM
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From: Robert Ord
To: Sauls, Garrett
Subject: Webster Oaks Proposal
Date: Sunday, April 5, 2026 5:41:13 PM
CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

To Garrett Sauls,
I live at 940 Webster Street two doors down from the Webster Oaks Apartments. I strongly oppose any changes to current zoning ordinances that would allow the newly proposed 70 units to be built at the Webster Oaks property. Parking is already a highly congested problem on our street!!! Sincerely,
Robert Ord
Property owner
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From: victor greene
To: Sauls, Garrett
Subject: Re: Application # 26PLN-00026
Date: Tuesday, April 7, 2026 2:40:08 PM
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i
Re: Application # 26PLN-00026
Palo Alto City Council Prescreening Hearing April 20, 2026 Attention: Project Planner Garrett Sauls
I am Victor Greene.

I am the homeowner at 581 Addison Avenue, Palo Alto, CA.

The current property at 910 Webster Street, commonly known as the Webster Oaks apartment building, contains 20 living units in a two story structure.

I am concerned about the proposal to rezone the site at 910 Webster Street to a planned community and redevelop the parcel with a new residential condominium building.

The current zoning district is RM-20.

The proposed rezoning is to zone the district as a PHZ district.

A PHZ district is wholly disproportionate to the existing community.

The surrounding homes and multifamily structures such as apartment houses and condominium structures are no more than two stories in height.

The existing structures are in conformity with the prevailing neighborhood aesthetics.

The Webster Oaks apartment building sits on the corner of Webster and Channing streets.

Channing House, a building directly across on the opposite corner, is zoned PC-8659.

Channing house was erected in the early 1960s and is zoned as a community building for elderly people to receive and enjoy lifetime care.

Channing House is a benefit to our community.

Not so with the proposal to rezone 910 Webster Street.

The disparate impact of a PHZ structure that may rise to anywhere from eighty-one to ninety-two feet in height would overwhelm the residents our community who live in no more than two story high homes.

The proposed condominium project of six stories in height would negatively impact its neighbors.

I and my neighbors do not live downtown where high rise structures are consistent with downtown Palo Alto.

We reside in a charming old neighborhood in what began as cottages adjacent to Stanford University.

Our small lots and diminutive homes of old Palo Alto remain a tribute to the beauty and charm of our city.

I urge the City Council to prevail upon the proposer of the project submitted in Application # 26PLN-00026 to limit the project to RN-20 zoning with no more than twenty units and a structure no higher than two stories.

Respectfully submitted,
Victor Greene
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From: Sophia Tyra
To: Sauls, Garrett
Cc: ROY TYRA
Subject: Proposed Development at Channing & Webster
Date: Thursday, April 9, 2026 10:35:31 AM
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i
Hello Garrett,
I am a homeowner at 519 Channing Avenue. It was brought to my attention by our HOA that a developer has submitted a preliminary application for a high rise housing development at the corner of Channing and Webster, which is across the street from where I live.

I would like to express my deep concerns for this proposed development. 1) Our zone is residential and although we’re in the downtown, the height and scale of surrounding buildings 3 stories or less. What makes me love my neighborhood is the “homey” feel, with open air views and daylight and trees for homeowners and pedestrians. A high rise development is not conducive to the current look and feel of the neighborhood nor does it fit the vibe of a Palo Alto residential neighborhood. It will cast shadows on surrounding homes and block critical views.
2) If the developer is relying on Channing House as a justifiable precedent for high rise buildings in this neighborhood, they are surely wrong. I live next to Channing House (adjacent to their loading dock side). Not only is that building disproportionally taller than all homes in the surrounding area, CH has proven to be a terrible neighbor to all of us. Between noisy delivery trucks that deliver at all hours day/night, street parking congestion and smoking and littering by their staff, we are all fed up with CH and we don’t want to see a similar development (size/scale) in our neighborhood.
3) Over the last 8-10 years, traffic on Channing Avenue has increased so much so that’s it’s become a main thoroughfare from Alma to Middlefield. There’s public buses, FedEx/UPS/Amazon trucks and countless delivery cars such as Door Dash along our street. This has resulted in drivers not abiding by the speed limit and/or driving the wrong way on a one way street. It’s natural to assume that this new development will add more congestion and traffic concerns with its occupants. A traffic study is necessary. There is a pedestrian crosswalk at Channing and Webster but it doesn’t deter speeders. Young families and children need to tread carefully on these streets to get to/from Addison Elementary. A traffic light intersection should be instalked and I hope that the developer provides an underground parking garage for the tenants. There is a lack of street parking as it stands currently.

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I realize that I’m submitting my comments a bit late but I hope that you consider them in your findings. I would also like to attend any public hearings on this development.

Thanks,
Sophia Tyra
Sent from the all new AOL app for iOS
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If you need assistance reviewing the above documents, please contact the Project Planner or call the Planner-on-Duty at 650-617-3117 or email [email protected]
Project Plans
In order to reduce paper consumption, a limited number of hard copy project plans are provided to Council members for their review. The same plans are available to the public, at all hours of the day, via the following online resources.

Directions to Review Project plans Online:

1. Go to: bit.ly/PApendingprojects

2. Scroll down to find “910 Webster Street” and click the address link

3. On this project-specific webpage you will find a link to the project plans and other important information
Direct Link to Project Webpage:
https://www.paloalto.gov/Departments/Planning-Development-Services/Current- Planning/Projects/910-Webster-St
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City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: April 20, 2026
Report #:2604-6229
TITLE
Approval of Minutes from April 6, 2026 Meeting

RECOMMENDATION
Staff recommends that the City Council review and approve the minutes.

ATTACHMENTS
Attachment A: April 6, 2026 Draft Action Minutes
APPROVED BY:

Mahealani Ah Yun, City Clerk
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CITY COUNCIL

DRAFT ACTION MINUTES

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Regular Meeting
April 6, 2026
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:30 P.M.

Present In Person: Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Stone, Veenker Present Remotely:

Absent:

Special Orders of the Day

1. Interview Candidate for Vacancies on the Planning & Transportation Commission; CEQA Status - Not a Project

NO ACTION

Agenda Changes, Additions and Deletions

Public Comment

Council Member Questions, Comments and Announcements

Study Session

2. Discussion of Nonprofit Partnership Workplan Phase I Purpose and Improvements for FY 2027. CEQA Status – Not a project.

NO ACTION

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DRAFT ACTION MINUTES

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City Council Meeting
Draft Action Minutes: 04/06/2026

3. San Antonio Road Area Plan Update and Council Feedback on Draft Land Use and Transportation Concepts and Alternatives. CEQA Status: Exempt under CEQA Guidelines Section 15262.

NO ACTION

Consent Calendar
Councilmember Lythcott-Haims registered a no vote on Agenda Item Number 13.

Councilmembers Stone and Burt registered a no vote on Agenda Item Number 5.

MOTION: Vice Mayor Stone moved, seconded by Council member Lythcott-Haims to approve Agenda Item Numbers 4-13.

MOTION PASSED ITEMS 4, 6-12: 7-0
MOTION PASSED ITEM 5: 5-2, Stone, Burt no
MOTION PASSED ITEM 13: 6-1, Lythcott-Haims no

4. Approval of Minutes from March 16 and March 23, 2026 Meeting

5. Approval of Construction Contract No. C26196846 with FieldTurf USA, Inc. in an Amount Not-to-Exceed $878,919 for El Camino Park Turf Replacement PG -24000, Including Authorization to Execute Change Orders; and Amend the FY 2026 Budget Appropriation in the Capital Improvement Fund; CEQA status – categorically exempt under CEQA Guidelines sections 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction).

6. Approval of General Services Contract No. C26194173 with Duke’s Root Control for a Total Not-to-Exceed Amount of $279,098 and a Three -Year Term and for Root Foaming Treatment Services; and Finding of California Environmental Quality Act (CEQA) Categorical Exemption pursuant to CEQA Guideline 15301, Maintenance of Existing Facilities

7. Approval of a Final Map for the Properties Located at 4335 and 4345 El Camino Real to Allow for a Condominium Subdivision to Create Eight Units on a 17,406 -Square-Foot Parcel and to Create 21 Units on a 41,370 -Square-Foot Parcel and the Naming of Three Private Streets Associated With the Development (25PLN -00160). CEQA Status: Exempt pursuant to CEQA Guidelines Section 15332 (In -fill Development). Zoning District: CS (Service Commercial).

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DRAFT ACTION MINUTES

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City Council Meeting
Draft Action Minutes: 04/06/2026

8. Approval of Contract Amendment Number 2 to Contract Number C21177635B with Ingram Library Services in the amount of $664,000 for Print Materials and Services for a new not- to-exceed (NTE) of $1,119,000 and to extend the contract term to June 30, 2028, Contract Amendment Number 2 to Contract Number C21177635C with Midwest Tape in the amount of $360,000 for Media and Digital Materials and Services for a new NTE of $1,113,000 and to extend the contract term to June 30, 2028, and Contract Amendment Number 1 to Contract Number C25190507 with OverDrive in the amount of $200,000 for Digital Materials and Services for a new NTE of $400,000 and to extend the contract term to June 30, 2028; CEQA Status – Not a Project.

9. Approval of Amendment Number 2 to Contract Number S20178516 with Hohbach- Lewin Inc. to Increase Compensation by $10,000, Revising the Amount Not- to-Exceed to $70,000 and Extend the Contract Term Through March 30, 2029, for On -Call Structural Engineering Services for Public Art Installations; CEQA Status – exempt under regulation 15061(b)(3).

10. QUASI-JUDICIAL. 530 Barron Avenue [25PLN -00021]: Appeal of Director’s Decision to Deny an Individual Review Application to Allow Partial Deconstruction of an Existing 924-Square-Foot Single-Story Residence and to Allow the Construction of a New 2,528 - Square-Foot Two Story Single -Family Residence with Attached One -Car Garage, 303 - Square-Foot Junior Accessory Dwelling Unit and 497 -Square-Foot of Existing House Converted to Detached Accessory Dwelling Unit. CEQA Status: Exempt from the Provisions of CEQA in Accordance with CEQA Guidelines Section 15303. Zoning District:

R-1 (Single-Family Residential).

11. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter

18.70 (Nonconforming Uses and Noncomplying Facilities) of the Palo Alto Municipal Code to Allow De Minimis Exceptions (FIRST READING: March 9, 2026; PASSED: 7-0)

12. SECOND READING: Ordinance of the Council of Authorizing Work in the Baylands Related to the Adjacent Development at 2100 -2400 Geng Road (24- PLN-00356) (FIRST READING: March 16, 2026; PASSED 7-0)

13. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter

18.40 (General Standards and Exceptions) of Title 18 (Zoning) of the Palo Alto Municipal Code to Adopt Bird Friendly Design Standards (FIRST READING: March 16, 2026; PASSED:
5-2, Lu, Lythcott-Haims no)

City Manager Comments
Ed Shikada, City Manager

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DRAFT ACTION MINUTES

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City Council Meeting
Draft Action Minutes: 04/06/2026
Action Items
AA1. Approval of Selection of and Employment Agreement with James Reifschneider as the Chief of Police at an Annual Salary of $363,584; CEQA Status – Not a Project New Item Added
MOTION: Mayor Veenker moved, seconded by Vice Mayor Stone to confirm the City Manager’s selection of James Reifschneider as Police Chief and approve his employment agreement (Attachment A).

MOTION PASSED: 7-0

14. Approval of FY 2026 -2027 Human Relations Commission, Parks and Recreation Commission, Public Art Commission, and Stormwater Management Oversight Committee Work Plans; CEQA Status - not a project

NO ACTION

15. Adoption of Recommendations by the Policy & Services Committee Implementing Changes to Meeting Procedures Related to Teleconferencing, Remote Public Participation, Translation and Interpretation Assistance, and Expanded Public Outreach; CEQA Status – Not a Project.

Agenda Item Number 15 was not heard and was deferred to a date uncertain.

16. Approval of City Council Values (as Recommended by Policy & Services Committee), 2026 Objectives, Ad Hoc Purpose Statements, and Committee Workplans (Continued from 3/9/2026 - On March 9, 2026, the Council Received Presentations and Public Testimony; the Item Will be Continued to April 6 for further Council Deliberation and Action - No Public Testimony Will be Heard on April 6.) Item Removed Off Agenda Agenda Item Number 16 was removed off the agenda and not heard.

Adjournment: The meeting was adjourned at 11:02 P.M.

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DRAFT ACTION MINUTES

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City Council Meeting
Draft Action Minutes: 04/06/2026

ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)

2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section

2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City’s website.

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CITY COUNCIL
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: April 20, 2026
Report #: 2603-6092
TITLE
Adopt a Resolution Authorizing the Director of Planning and Development Services to Make Minor Modifications to the 2023-2031 Housing Element Site Inventory. CEQA Status: The City Council adopted a Revised Addendum to the Comprehensive Plan Final Environmental Impact Report on December 18, 2023, that, in conjunction with the Comprehensive Plan Final EIR, fully analyzes the impacts of the 6th Cycle Housing Element, including minor modifications to the site inventory.

RECOMMENDATION
Staff recommends that the City Council adopt a resolution to authorize the Director of Planning and Development Services to make modifications to the 2023-2031 Housing Element site inventory that are consistent with the adopted Housing Element.

BACKGROUND
On April 15, 2024,1 a joint meeting of the Planning and Transportation Commission and the City Council was held, and the City Council adopted a resolution adopting a revised 2023-2031 Housing Element. As part of its action to adopt the Revised Housing Element, the City Council directed and authorized the Director of Planning and Development Services to make any non- substantive changes or amendments to the Housing Element requested by the Department of Housing and Community Development (HCD) and to take all other actions necessary to achieve certification. Over the following months, the Director engaged with HCD and made several minor changes to the adopted Housing Element, including changes to the site inventory. The City’s Housing Element was certified by HCD on August 20, 2024.2 1https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82774&dbid=0&repo=PaloAlto&searchid=a9993a9 6-367c-4f66-877a-65b4c99ca3a2&cr=1
2https://www.paloalto.gov/files/assets/public/v/1/planning-amp-development-services/housing- element/housing-element_2023_2031/palo-alto-housing-element.pdf Item 6
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Regional Housing Need Allocation (RHNA) and Maintaining Adequate Sites Per State law requirements, the Housing Element contains information about the City’s housing needs, constraints to building housing, available housing sites, an explanation of City resources for supporting housing development, as well as goals, policies, and programs that will help address the City’s share of regional housing needs as identified by the Association of Bay Area Governments (ABAG). The City’s housing needs are quantified in the RHNA, which includes housing targets at all income levels. As shown in Table 1, the minimum RHNA requirement for Palo Alto in the 2023-31 planning period is 6,086 homes across four income levels.

Table 1: City of Palo Alto 2023-31 RHNA Requirement
Income Level
Very Low
Income Low Income
Moderate
Income
Above
Moderate
Income Total
Area Median
Income (AMI) <50% AMI
50-80% of
AMI 80-120% AMI >120% AMI
Units 1,556 896 1,013 2,621 6,086
Program 1.1 Adequate Sites Program of the Housing Element, consistent with State law, requires the City to maintain a residential site inventory that is adequate to accommodate the City’s share of regional housing needs through the duration of planning period. Program 1.2 Site Inventory Monitoring Program, requires the City to identify additional housing inventory sites if there is a shortfall of adequate RHNA capacity for any income level.5 The City Council adopted a 2026 priority objective in March to identify and designate additional Housing Element site capacity to maintain RHNA compliance. This was identified in anticipation of estimated shortfalls occurring in 2026.

ANALYSIS
The Housing Element site inventory6 includes estimated capacities and income levels based on the best available information at the time of adoption. It is normal for the site inventory to require periodic updates over the course of an eight-year housing element cycle. The proposed resolution would allow the Planning Director to maintain the site inventory as a living document to respond to mid-cycle conditions and to ensure that the City’s site inventory remains compliant with state law.

Updates to the site inventory may be required for a variety of reasons. As sites in the inventory develop, the actual number of units and income levels will vary based on the unique circumstances of each project and likely will not match the City’s projections. A recent example is the project at 2100-2400 Geng Road recently approved by the City Council on March 16, 5 Note: for purposes of determining adequate capacity in a site inventory, the RHNA requirements for very low- and low-income are combined. (See Gov. Code Section 65583.2(c)(3).) 6 https://www.paloalto.gov/files/assets/public/v/1/planning-amp-development-services/housing- element/housing-element_2023_2031/appendix-d_site-inventory.pdf Item 6
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2026. The site was identified with an estimated capacity of 175 moderate income units, but the actual project developed with 145 units, none of which are at the moderate income level (126 units are above-moderate income and 19 units are deed restricted for lower income households). This project created a deficit in the City’s moderate income RHNA category, requiring the City to identify new sites to meet the capacity within 180 days. New sites to accommodate the RHNA must be “suitable and available” for residential development and will be subject to the same rigorous analysis performed in 2023 and 2024.

The Housing Element also includes programs which may require identification of new sites. For example, if the Downtown parking lot sites (Program 1.4) and faith-based sites (Program 1.1E) included in the inventory are not progressed or developed within a specific timeline, they require the projected unit capacity be identified elsewhere.

In addition, staff have heard from property owners who wish for their properties to be added to the site inventory in order to access the upzoning the City has adopted in Chapter 18.14 of the PAMC. These requests will be evaluated as new opportunity sites are considered for inclusion in the Housing Element site inventory. However, developer interest alone will not result in sites being added to the inventory. Each new site will be evaluated for housing development suitability.

Changes to the site inventory in response to these conditions are routine and are expected to be consistent with the substantive analysis, policies, and programs contained in the Housing Element, as well as the environmental impacts analyzed in the Revised Addendum to the Comprehensive Plan Final EIR adopted by the City Council. These changes are generally reported to and reviewed by HCD on an annual basis (and City Council) as part of the Housing Element Annual Progress Report (APR). This process recognizes that the Housing Element site inventory is dynamic, requiring periodic updates as sites are developed and without the need for formal amendment of an adopted Housing Element.

Adoption of the draft resolution (Attachment A) would streamline the process of maintaining the site inventory by allowing sites to be added at various income levels based on current conditions to comply with State law.

FISCAL/RESOURCE IMPACT
Adoption of the resolution recommended by staff would not have additional fiscal impact.

To accomplish the critical and time-sensitive work of identifying suitable replacement sites, staff has issued a task order through the Council approved on-call planning contracts for technical analysis associated with evaluating new housing opportunity sites for inclusion in the inventory. The resolution proposed for approval by City Council will ensure that the process of maintaining the inventory through changing conditions is timely and efficient.

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STAKEHOLDER ENGAGEMENT
Staff placed an ad in the Daily Post newspaper on April 10, 2026, 10 days in advance of the hearing. Preparation of the Housing Element included a range of community outreach methods including surveys, Working Group meetings, community workshops, and public hearings.

Identification of new housing opportunity site to include in the inventory will include coordination with property owners.

The site inventory is located on the City’s website. Any revisions to the inventory would be posted to the same webpage.

ENVIRONMENTAL REVIEW
On April 15, 2024, the City Council adopted Resolution No. 10155, approving a Revised Addendum to the Comprehensive Plan Environmental Impact Report (EIR). The addendum analyzed potential environmental impacts of the 6th Cycle Draft Housing Element. This includes housing production to meet the RHNA through implementation of Housing Element programs, including the program requiring maintenance of the Housing Element sites inventory. Minor updates to the site inventory are consistent with the intensity of development studied in the Revised Addendum and are not anticipated to have an additional environmental impact beyond what was analyzed in the Revised Addendum.

ATTACHMENTS
Attachment A: Draft Resolution
APPROVED BY:

Jonathan Lait, Planning and Development Services Director Item 6
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***NOT YET APPROVED***
1 0160186_20260324_ay16
RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALO ALTO, AUTHORIZING THE

DIRECTOR OF PLANNING AND DEVELOPMENT SERVICES TO UPDATE AND MAINTAIN THE SITE INVENTORY FOR THE CITY’S 2023-2031 HOUSING ELEMENT

R E C I T A L S
A. State Housing Element Law (Government Code Sections 65580 et seq.) requires that the City Council adopt a Housing Element for the eight-year period 2023-2031 to accommodate the City of Palo Alto (City) regional housing need allocation (RHNA) of 6,086 housing units, comprised of 1,556 very-low income units, 896 low-income units, 1,013 moderate-income units, and 2,621 above moderate- income units; and
B. State Housing Element Law further requires the City to include in its Housing Element an inventory of land suitable for residential development and adequate to accommodate the RHNA (Site Inventory). The Site Inventory must include the number of units that can realistically be accommodated on each site and whether each site is adequate to accommodate lower income housing, moderate-income housing, or above moderate-income housing.

C. On April 15, 2024, the City Council adopted Resolution No. 10155, making various findings, adopting a Revised 2023-2031 Housing Element, and authorizing the Director of Planning and Development Services to take further actions necessary to achieve certification of the Housing Element by the California Department of Housing and Community Development (HCD).

D. On August 19, 2024, HCD found that the Revised 2023-2031 Housing Element, as further modified on July 17, 2024, was substantially compliant with state law.

E. Program 1.1 of the Housing Element, Adequate Sites Program , requires the City to maintain a residential site inventory that is adequate to accommodate the City’s RHNA throughout the duration of the Housing Element planning period of 2023-2031. Program 1.2 of the Housing Element, Site Inventory Monitoring Program, requires the City to identify additional housing inventory sites if there is a shortfall of capacity in the Site Inventory to accommodate the RHNA for any income level.

F. In addition, elements of Programs 1.1 and 1.4 of the Housing Element could require the City to identify additional sites for the Site Inventory in the event development on certain sites has not progressed in accordance with timelines specified in those Programs.

G. Finally, the City may wish to modify the Site Inventory on the basis of developer interest in accessing increased development potential that is permitted for sites on the Site Inventory.

H. Minor modifications to the Site Inventory do not require changes to the analysis or policies and programs contained in the Housing Element and do not constitute revision or amendment of the Housing Element, as those terms are used in State Housing Element Law. Modifications to maintain an adequate Site Inventory are generally reported to HCD solely by means of a Housing Element Annual Progress Report.

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Resolution

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***NOT YET APPROVED***
2 0160186_20260324_ay16
I. Pursuant to the provisions and requirements of CEQA and CEQA Guidelines Section 15164, the City as lead agency, prepared a Revised Addendum to the 2017 Comprehensive Plan Final EIR (the Addendum) to analyze the potential environmental impacts resulting from the Revised 2023-2031 Housing Element. This includes housing production to meet the RHNA development of the Site Inventory and implementation of Housing Element programs, including Programs 1.1, 1.2, and 1.4; and
J. On November 13 and December 18, 2023, the City Council approved the Addendum and found that the Addendum, in conjunction with the 2017 Comprehensive Plan EIR adequately analyzed the environmental impacts of development under the Housing Element.

NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby finds that, based on substantial evidence in the record:

1. The Director of Planning and Development Services is hereby directed and authorized to modify the Site Inventory to maintain adequate sites to accommodate the RHNA, to implement the requirements of various Housing Element programs, and as the Director deems appropriate in response to developer interest.

2. The City Council finds that routine modifications to the Site Inventory are consistent with the intensity of development analyzed in the Addendum and are not anticipated to have additional environmental impact beyond what was analyzed in the Addendum and the 2017 Comprehensive Plan EIR.
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***NOT YET APPROVED***
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3. This Resolution shall become effective upon adoption by the City Council.

INTRODUCED and 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
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Resolution

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: IT Department
Meeting Date: April 20, 2026
Report #:2602-5980
TITLE
Approval of Amendment Number 1 to Contract C23187554 with Vox Network Solutions to Increase Compensation by $212,819 and to Extend the Term to June 30, 2027, for Maintenance of the City’s Enterprise Phone System; CEQA Status – exempt under section 15061(b)(3).

RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or designee to execute Amendment No. 1 to Contract No. C23187554 with Vox Network Solutions (Attachment A) for an additional year for the maintenance of the City’s Enterprise Phone System and to increase compensation by $136,897 for basic services and $75,921 for additional services. This amendment results in a revised total contract not-to-exceed amount of $713,740.

BACKGROUND
The City’s enterprise phone system was replaced under a VOX contract following a 2012 RFP process after the prior system was no longer supported by the manufacturer. City Council approved replacing the City’s legacy phone system with a modern Avaya VoIP/hybrid system on June 6, 2012, and the new system was fully implemented in October 20131. After implementation, the City continued to procure ongoing maintenance and support from VOX Most recently, on June 19, 2023, City Council approved Contract no. C23187554 to upgrade the City’s phone system and provide a three-year support term using a National Cooperative Purchasing Alliance (NCPA) cooperative agreement2. Amendment No. 1 maintains service continuity by adding a one-year extension and increasing not-to-exceed authority to address additional, unforeseen licensing necessary to sustain the City’s phone system.

1 June 4, 2012 City Council Staff Report: https://www.cityofpaloalto.org/files/assets/public/v/1/from- archive/agendas-minutes-reports/reports/city-manager-reports-cmrs/2012/cmr-2760.pdf 2 June 19, 2023 City Council Staff Report:
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ANALYSIS
Staff recommends extending services with VOX Network Solutions for one more year to maintain stable, uninterrupted support for the City’s enterprise phone system while the City completes a structured assessment of the best long-term direction (continued on-premises Avaya modernization vs. a cloud solution). The City’s current phone environment supports essential municipal operations and integrations, particularly those tied to public safety, call center reporting, payment-by-phone/IVR workflows, outage/emergency operations, call accounting/audit needs, and hybrid work which are not always supported “out of the box” by basic cloud phone offerings. The existing system is now antiquated and approaching the end of its vendor-supported lifecycle. The City anticipates replacing and modernizing the phone system in the next fiscal year.

As authorized under PAMC section 2.30.360(j), the current contract was procured through NCPA cooperative agreement5, which is reduced pricing available to local government agencies and provides a compliant, efficient procurement path for this interim period. The one-year renewal provides the City time to: (1) assess the City’s current Avaya platform and remaining lifecycle needs, (2) evaluate cost and risk options to upgrade or optimize the City’s on-premises Avaya environment, and (3) competitively investigate leading industry providers for a cloud- based solution without introducing avoidable service disruption or emergency/after-hours support gaps during the evaluation period.

The requested contingency will fund payment of an outstanding $30,383 invoice that could not be paid because additional services funds were exhausted and provide a 10% contingency for unforeseen licensing adjustments during the extension period. This will help maintain continuity of the City’s telecommunications systems during ongoing changes and transition planning.

FISCAL/RESOURCE IMPACT
The costs are expected to occur in FY 2027. Funding for this one-year amendment will be included in the FY 2027 annual budget development process, subject to City Council approval consistent with how multi-year technology support contracts are funded in future years. 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. 5 NCPA Cloud and On-Premise Communications Solutions Contract No. 01-125:
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ENVIRONMENTAL REVIEW
The approval of this contract is exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15061(b)(3).

ATTACHMENTS
Attachment A: Amendment No. 1 to Contract No. C23187554 APPROVED BY:

Darren Numoto, Chief Information Officer; Lisa Bolger, Assistant Director Information Technology/CTO
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AMENDMENT NO. 1 TO CONTRACT NO. C23187554

BETWEEN THE CITY OF PALO ALTO AND
VOX NETWORK SOLUTIONS, INC.

This Amendment No. 1 (this “Amendment”) to Contract No. C23187554 (the “Contract” as defined below) is entered into as of April 20, 2026, by and between the CITY OF PALO ALTO, a California chartered municipal corporation ( “CITY”), and VOX NETWORK SOLUTIONS, INC., a Delaware Corporation , located at 110 S. Hartford Avenue, Suite 2502, Tulsa, OK 74120 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.

R E C I T A L S

A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of upgrading the communications environment to the latest release of software, that offers a more secure communication platform, as detailed therein.

B. The Parties now wish to amend the Contract in order to (1) extend the term end date from June 18, 2026 to June 30, 2027, (2) increase the not to exceed compensation by Two Hundred Twelve Thousand Eight Hundred Eighteen Dollars and Seventy-Two Cents ($212,818.72) from Five Hundred Thousand Nine Hundred Twenty -One Dollars and Twenty -Seven Cents ($500,921.27) to Seven Hundred Thirteen Thousand Seven Hundred Thirty -Nine Dollars and Ninety-Nine Cents ($713,739.99), and (3) update the scope, as detailed herein.

NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree:

SECTION 1. Definitions. The following definitions shall apply to this Amendment:

a. Contract. The term “Contract” shall mean C ontract No. C23187554 between CONSULTANT and CITY, dated June 19, 2023.

b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract.

SECTION 2. Section 2 “TERM” of the Contract is hereby amended to read as follows:

“The term of this Agreement shall be from the date of its full execution through June 30, 202 7 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.”

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SECTION 3. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to read as follows:

“The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Five Hundred Ninety-Two Thousand T wo Hundred Eighty Dollars and Forty -Seven Cents ($592,280.47). The hourly schedule of rates, if applicable, is set out in Exhibit C -1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall b e at no cost to the CITY.

Optional Additional Services Provision (This provision applies only if checked and a not - to-exceed compensation amount for Additional Services is allocated below under this Section 4.)

In addition to the not- to-exceed compensation specified above, CITY has set aside the not- to-exceed compensation amount of One Hundred Twenty -One Thousand Four Hundred Fifty-Nine Dollars and Fifty -Two Cents ($ 121,459.52) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed Seven Hundred Thirteen Thousand Seven Hundred Thirty-Nine Dollars and Ninety-Nine Cents ($713,739.99), as detailed in Exhibit C.

“Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section

4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.

To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter -signature by the CITY Project Manager), the fully exec uted Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for Docusign Envelope ID: 90B3ABDD-8B03-4453-917E-469F8D76241B Item 7
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all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4.

Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.”

SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/ are hereby incorporated in full into this Amendment and into the Contract by this reference:

a. Exhibit “A” entitled “SCOPE OF SERVICES, AMENDMENT NO.1”, AMENDED, REPLACES PREVIOUS.

b. Exhibit “C -1” entitled “ SCHEDULE OF RATES, AMENDMENT NO.1 ”, AMENDED, REPLACES PREVIOUS.

SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect.

SECTION 6 . Incorporation of Recitals . The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference.

(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)

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SIGNATURES OF THE PARTIES

IN WITNESS WHEREOF, the P arties have by their duly authorized representatives executed this Amendment effective as of the date first above written.

CITY OF PALO ALTO

City Manager

APPROVED AS TO FORM:

City Attorney or designee

VOX NETWORK SOLUTIONS, INC.

Officer 1

By:

Name:

Title:

Officer 2

By:

Name:

Title:

Attachments:

EXHIBIT “A” ENTITILED “SCOPE OF SERVICES, AMENDMENT NO.1”, AMENDED, REPLACES

PREVIOUS
EXHIBIT “C-1” ENTITILED “SCHEDULE OF RATES, AMENDMENT NO.1”, AMENDED, REPLACES

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Klaus Hillmann
Evan Jones
Chief Customer Officer
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EXHIBIT A
SCOPE OF SERVICES, AMENDMENT NO.1

AMENDED, REPLACES PREVIOUS

CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”. CITY agrees to purchase and CONSULTANT agrees to provide Signature Support (“Services”) according to the terms of this Amendment No. 1. Waterfield Signature Support (Services) is an Information Technology Infrastructure Library (ITIL) based service consisting of the monitoring, troubleshooting, device and service management (incident, change, problem, MACD), and reporting of the CITY’s Managed Infrastructure.

REQUIREMENT OF MANUFACTURER SUPPORT CONTRACT
Access to manufacturer escalation support and access to patches and software for the covered systems is contingent upon purchase and maintenance of a Manufacturer Support Contract. If no manufacturer support exists or when equipment is deemed unsupportable by the manufacturer, or it is deemed not serviceable due to lack of replacement part availability, Waterfield support will be best effort.

Services Elements Summary
The following tables summarize the service elements included in this Waterfield Signature Support offer:

Service Element Included
24x7x365 Service Desk x
Event Management x
Incident Management x
Problem Management x
Change Management x
WATERFIELD Service Portal x
Technical Account Manager (TAM)
Patch Management
Certificate Management
3rd Party Case Management
Bundled Hours x
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Covered Assets Covered
Qty
Hardware
Replacement
Location : 3638486 CITY OF PALO ALTO- CITY HALL & PD, 250 HAMILTON AVE, PALO ALTO, CA, US, 94301 - City Hall & PD
ASP130 P5 SRVR 1 E
ASP110 SRVR - ASBCE 2 E
LSP 1 E
G450 GTWY 2 N/A
COMMUNICATION MGR - SIMPLEX/DUPLEX 1 Virtual
ADS 1 Virtual
SAL 1 Virtual
SYSTEM MGR 1 Virtual
SESSION MGR 1 Virtual
AADS 1 Virtual
BREEZE PRESENCE SERVER 1 Virtual
AES 1 Virtual
AVAYAMESSAGING R11 1 Virtual
AVAYAMESSAGING - Consolidated Server 1 Virtual
Location : 5233711 CITY OF PALO ALTO, 3201 E BAYSHORE RD, PALO ALTO, CA, US, 94303 - Municipal Service Center
ASP130 P3 SRVR 1 E
G450 GTWY 1 E
LSP - S8300 1 E
COMMUNICATION MGR - ESS 1 Virtual
SESSION MGR 1 Virtual
SESSION MGR - Resiliency 1 Virtual
IX MESSAGING 1 Virtual
Location : Mobile Emergency Op Center at Municipal Service Center Yard – Command Vehicle located on MSC Lot
G430 GTWY 1 N/A
S8300E SERVER 1 N/A
Location : 5367282 UCC - 3241 E Bayshore Rd. Palo Alto, CA 94303 - Survivable Remote G430 GTWY 1 N/A
S8300E SERVER 1 N/A
Location: 5367312 Main Library/ Rinconada – 1213 Newell Rd. Palo Alto, CA 94303 - Main Library Remote GTWY
G430 GTWY 1 N/A
Location : 5367313 Mitchell Park Library – 3700 Middlefield Rd. Palo Alto, CA 94306 - Mitchell Park Library Remote GTWY
G430 GTWY 1 N/A
Location : 5367314 Lucie Stern Complex – 1305 Middlefield Rd, Palo Alto, CA 94301 - Lucie Stern Complex G430 GTWY 1 N/A
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Location : 5367316 Children’s Library – 1275 Harriet St. Palo Alto, CA 94301 - Children's Library G430 GTWY 1 N/A
Location : 5367317 Art Center – 1213 Newell Rd. Palo Alto, CA 94303 - Art Center Remote G430 GTWY 1 N/A
Location : 5367318 Cubberly Ctr – 4000 Middlefield Rd. Palo Alto, CA 94303 - Cubberly Center G430 GTWY 1 N/A
Location : 5367320 Fire Station 1 – 301 Alma St. Palo Alto, CA 94301 - Fire Station 1 G430 GTWY 1 N/A
Location : 5367321 Fire Station 2 – 2675 Hanover St. Palo Alto, CA 94304 - Fire Station 2 G430 GTWY 1 N/A
Location : 5367324 Junior Museum – 1451 Middlefield Rd. Palo Alto, CA 94301 - Junior Museum G430 GTWY 1 N/A
Location : 5367326 Water Quality – 2501 Embarcadero Way Palo Alto, CA 94303 - Water Quality G430 GTWY 1 N/A
Location : 5367329 Utilities Engineering Office – 1007 Elwell Ct. Palo Alto, CA 94303 - Utilities Eng. Office G430 GTWY 1 N/A
Location : 51758172 Fire Station 3 – 2501 Embarcadero Way Palo Alto, CA 94303 - Fire Station 3 G430 GTWY 1 N/A
Location : 51485177 Fire Station 4 – 3600 Middlefield Rd. Palo Alto, CA 94301 - Fire Station 4 G430 GTWY 1 N/A
Location : 51485178 Fire Station 5 – 600 Arastradero Rd. Palo Alto, CA 94301 - Fire Station 5 G430 GTWY 1 N/A
Location : 5367323 Fire Station 6 – 711 Serra St, Stanford, CA 94305 - Fire Station 6 G430 GTWY 1 N/A

Hardware Replacement Legend:

A = Manufacturer parts replacement NBD
B = Manufacturer parts replacement 24x7x4
C = Manufacturer parts Replacement 8x5x4
D = Manufacturer parts replacement and onsite dispatch NBD E = Manufacturer parts replacement and onsite dispatch 24x7x4 F = Manufacturer parts replacement and onsite dispatch 8x5x4 N/A = Not Applicable

INTEGRATED APPLICATIONS NOT COVERED
If present, for applications that have an integration to covered assets listed above but that are not supported by Waterfield directly; Waterfield will support integration points within the covered assets only, far end applications to be supported by CITY or CITY’s vendor. 24x7x365 Service Desk
• Waterfield will provide 24x7 system support for the solution environment. This includes access to Waterfield’s 24x7 Service Desk. All incidents will be responded to and managed according to Waterfield’s ticketing system.

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• Waterfield will document procedures for communicating issues and accessing support. • CITY will be able to open and track tickets via the Waterfield Support Line (phone), the Waterfield Collaboration Portal (web), and email.

Event Management
Waterfield will monitor for Events on all Managed Assets listed above.

Waterfield Responsibilities
• Detect that an Event has occurred by monitoring syslog, SNMP trap messages, KPIs, and/or Threshold Crossing Alerts from Managed Assets.
• Implement Event correlation and filtering through Event Management policies when an Event occurs.

CITY Responsibilities
• Provide access and make configuration changes required for Waterfield to receive messages from the Managed Assets.
• Participate in mitigating and remediating events generated by CITY action or resulting from CITY-owned infrastructure elements.

Incident Management
Waterfield will remotely identify, troubleshoot, and restore normal operational functionality if an Incident is detected in a Managed Asset.

Waterfield Responsibilities
• Create tickets from detected or reported Events, where required. • Manage Incidents by classifying, prioritizing, troubleshooting, and restoring normal operation. • Escalation to the primary telephony OEM is included in Signature Support. Any other OEM or third-party escalations are supported only under the Enhanced Signature Support offering for 3rd Party Vendor Management.
• Assign and reassess Incident priorities in accordance with Waterfield process and policy as defined in the Waterfield Service Management Governance addendum. • Notify relevant parties about Incidents, keeping the parties updated through Incident closure, per communication protocols established at onboarding (preferred CITY contacts, escalation points, etc.).
• Provide Incident reports pertaining to the Managed Assets via the Waterfield Management Portal.

CITY Responsibilities
• Provide the means for Waterfield to access, troubleshoot, and resolve Managed Assets.

Primary remote access for Waterfield will be via the Waterfield Monitoring Server. • Provide details about support contracts and other documentation/authorization required to facilitate Incident resolution.
• Contact Waterfield if the CITY believes an Incident is in progress or has occurred. • Perform Waterfield- or third-party-recommended changes to Managed Assets or third-party Docusign Envelope ID: 90B3ABDD-8B03-4453-917E-469F8D76241B Item 7
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hardware, software, or services, if outside of the scope of Services Management. • Provide Waterfield with updates to CITY-initiated actions related to the Incident(s).

Please note: Incident Tickets will be placed on “hold” for any period of time Waterfield is delayed in receiving required information from the CITY, the End User, or applicable third-party service providers.

Hardware Replacement (Parts Coverage)
Hardware replacement coverage listed in the Covered Assets table will be replaced under this contract via Waterfield parts coverage or Manufacturer Support parts coverage, as noted. Parts will be replaced on a Next Business Day basis if replacement is identified prior to 12:00 p.m.

PST.

Waterfield Technician Dispatch (Onsite Support)
Based on evolving virtualization technologies and support models that have greatly reduced the need for onsite support, and to keep costs down for the CITY, technician dispatch for troubleshooting or replacement hardware installation, if required, will be provided on a Time and Materials basis only.
• If replacement parts provided by the OEM or Waterfield require pre-staging or configuration prior to shipment to the CITY site, Waterfield will notify the CITY, stage the hardware at a Waterfield office location, and ship the hardware to the CITY site for CITY installation. • Upon request, onsite technician support will be provided on a best-effort basis with a Next Business Day target for Priority 1 and 2 Incidents, subject to hardware and resource availability and installation readiness. Onsite support will be billed on a Time and Materials basis or applied against contracted Bundled Hours (if purchased). Dispatch will be supported by a Waterfield resource or Waterfield-authorized contractor.
• If Manufacturer onsite dispatch is purchased, dispatch is subject to the SLA of the purchased model per the Covered Assets table above.

Problem Management
Problem Management is the process of identifying the cause of an error in the supported solutions, usually reported as occurrences of related Incidents, and removing the causes of these errors permanently. Problem resolution and elimination of root cause often calls for the application of a change in the existing environments.

Problem cases are created as necessary and worked by Waterfield staff in order to find the root cause for a single issue or a set of related issues and apply a permanent fix.

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Change Management
Change Management is the process of recording and managing the planned deployment of alterations to CITY environments, processes, and documentation. Waterfield will utilize the CITY’s documented Change Management process, if available. Otherwise, Waterfield will utilize its own system-enforced Change Management process to complete any change needed as the result of an Incident or Problem ticket.

If required by documented CITY change procedures, Waterfield will prepare and provide a Method of Procedure (MOP) document in Waterfield’s standard format outlining the details, timing, and impacts of the change for CITY change-approval processing. If Waterfield is required to participate in CITY Change Advisory Board (CAB) meetings or utilize custom formats or processes for MOP development, additional charges may apply.

Waterfield is not accountable for Changes made by CITY staff outside of the agreed-upon, documented Change Process.

Waterfield will manage the deployment of technical changes to the Managed Assets (e.g., configuration changes) in the CITY’s environment as a result of a change activity. Change types supported by Change Management are Emergency, Normal, and Standard Changes.

Waterfield Responsibilities
• Manage the lifecycle of Change Management Requests, as required, resulting from an Incident, Problem, Service Request, as otherwise mutually agreed to in writing, or as required in accordance with the Change Management Process.
• Coordinate, provide governance, and execute changes to Managed Assets, using commercially reasonable efforts to minimize any adverse impacts of those changes to the CITY’s environment.
• Validate and prioritize Change Requests based on urgency. • Manage the end-to-end lifecycle of Change Requests.
• Provide notifications of change request start and completion for CITY-impacting changes. • Work with the CITY to identify and approve Standard Changes. • As part of the CITY’s CAB process, discuss with the CITY any changes to Monitored Assets that may result from Changes approved with respect to the Managed Assets. • Perform pre- and post-change Health Checks.

CITY Responsibilities
• Provide written documentation to Waterfield at onboarding, or as modified throughout the contract term, defining any custom Change Policies or processes that must be adhered to by Waterfield.
• Submit Requests for Change (RFCs) for Waterfield Managed Assets as Service Requests via the Docusign Envelope ID: 90B3ABDD-8B03-4453-917E-469F8D76241B Item 7
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Portal, Smart Bonding, or the CITY ITSM.
• Submit Requests for Change (RFCs) for CITY Managed Assets as Changes via the Portal, Smart Bonding, or the CITY ITSM.
• Inform Waterfield of CITY scheduling, communicating, and executing of changes or CITY- performed additions or modifications to the supported environment. • Provide Waterfield access to CITY CAB meetings and facilitate communication between Waterfield and the CITY’s CAB.
• Confirm and maintain scheduled windows for change activities. • Determine and mitigate any impacts to the Monitored Assets or out-of-scope devices as a result of a change to the Managed Assets.
• Review and approve (within 48 hours or less) Waterfield-initiated Changes to Managed Assets via Waterfield’s Service Portal.

WATERFIELD Service Portal
Waterfield will provide a web-based Portal that provides CITY reports and information related to the Services. The Waterfield Management Portal will be the primary means of communication on all cases between the Waterfield Service Team and the CITY.

Waterfield Responsibilities
• Implement and make available to the CITY a Portal for the Service. • Provide the capability to open, update, and review cases, changes, etc. • Provide the capability to view reports.

CITY Responsibilities
• Provide end user profiles for Portal access in accordance with relevant industry practice. • Review and update (as needed) Incidents and Change Requests.

Bundled Hours – 6 Hours Annual Allotment
Upon contract activation and at the anniversary date of each subsequent year of a multi-year contract, the CITY’s services account will be credited with the specified annual hours of Waterfield Services to be used at the CITY’s discretion. Additional hours beyond the included/bundled hours will be charged at the contracted rate below. Bundled hours allotment and rate are covered in the Program Fees section below.

All work requested under Bundled Hours is facilitated, scheduled, and coordinated by the Waterfield support team, and all hours spent by all roles engaged in the planning and execution of requested work are accrued against the Bundled Hours. Utilization of hours is tracked and reported to the CITY on a monthly basis or available upon request.

Bundled hours are intended to be used within the contract year and do not roll over to subsequent years.

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Service Requests (Move, Add, Change and Delete – MACD)
Typical uses for these hours include transactional programming requests generally related to specific user additions, removals, or changes and not holistic or scoped changes as outlined above. Waterfield maintains flexibility in working with the CITY on the utilization of Bundled Hours; however, they are intended for use primarily for MACD, defined as follows:
• Requests are made via a ticket in the Waterfield Portal or via email to the Waterfield Service Desk, and fulfilled by Waterfield with communications occurring within Waterfield’s ticketing system.
• MACD is defined as not requiring multiple resources or coordination with external vendors or parties, can be completed in less than two (2) hours per engagement, and does not require Project Management or Coordination.
• Waterfield will utilize a proven change control process for managing changes requested under this program.
• Complex requests requiring PMO management, third-party support coordination, multiple phases, or that support net-new functionality, integrations, or capabilities will be quoted as new project work through the Waterfield account team.

SEVERITY DEFINITIONS AND RESPONSE SLA:

LEVEL DEFINITION SERVICE LEVEL AGREEMENT

RESPONSE TIMES

Priority 1
Service interruption affecting whole
site or network, mission critical server
or service, or critical application on a
managed server

Within one (1) hour

Priority 2
Service interruption affecting small
number of users, or service
degradation affecting many users
(large office or multiple small offices)

Within four (4) hours
Priority 3 Service interruption affecting a single
user, or service; degradation affecting
a few users
Within one (1) business day
Priority 4 Informational & General requests,
MACD requests. Within one (1) week

CITY acknowledges that incidents caused by system hardware or software may require third- party manufacturer involvement. Waterfield is not liable for system hardware or software failures or delays in receiving system software bug fixes, patches, maintenance releases, upgrades, or new version
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EXHIBIT C-1
SCHEDUL OF RATES, AMENDMENT NO.1

AMENDED, REPLACES PREVIOUS

CONSULTANT’S schedule of rates is as follows:

Previously Paid Base for Year 1-3: $455,383.27
Previously Paid Additional Services Year 1-3: $45,538.33 Total Previously Paid Base and Additional Services Year 1-3: $500,921.60

Amendment #1:

Year #4 Base: $136,897.20
Additional Services Increased by: $75,921.19
Total for Amendment #1: $212,818.39

New Total Not to Exceed Compensation: $713,739.99

RATES AMENDED FOR YEAR 1-3 Paid: ($500,921.60)
These amounts for June 19, 2023 – June 18, 2026 are fully paid.

Description Recurring One-Time
AVAYA - HARDWARE / SOFTWARE $0.00 $72,889.19
CALERO SOFTWARE $0.00 $2,556.67
TELSTRAT SUPPORT - 3YR PRE-PAY $0.00 $9,551.44
XIMA SUPPORT - 3YR PRE-PAY $0.00 $2,400.00
AVAYA ONECLOUD SUBSCRIPTION ANNUAL - 1 OF 3 YEAR TERM $54,259.76 $0.00 AVAYA SA HARDWARE MAINTENANCE - 1 OF 3 YEAR TERM $6,506.58 $0.00 MANAGED SERVICES SUPPORT - 1 OF 3 YEAR TERM $25,582.00 $0.00 AVAYA ONECLOUD SUBSCRIPTION ANNUAL - 2 OF 3 YEAR TERM $54,259.76 $0.00 AVAYA SA HARDWARE MAINTENANCE - 2 OF 3 YEAR TERM $6,506.58 $0.00 MANAGED SERVICES SUPPORT - 2 OF 3 YEAR TERM $25,582.00 $0.00 AVAYA ONECLOUD SUBSCRIPTION ANNUAL - 3 OF 3 YEAR TERM $54,259.76 $0.00 AVAYA SA HARDWARE MAINTENANCE - 3 OF 3 YEAR TERM $6,506.58 $0.00 MANAGED SERVICES SUPPORT - 3 OF 3 YEAR TERM $25,582.00 $0.00 PROFESSIONAL SERVICES $0.00 $97,752.27

RATES ADDED FOR NEW ADDITIONAL TERM YEAR 4
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New Avaya Subscription | UC 12-Month and CC 15-Month Term Description Recurring Qty Ext.

Recurring
UC Subscription: July 1, 2026 - June 30, 2027 | 12 MONTH Functional Location : 5233711 CITY OF PALO ALTO, 3201 E BAYSHORE RD, PALO ALTO, CA, US, 94303 255851 SA ON-SITE 24X7 APPL MED SRV R2D 1YPP $1,425.60 1 $1,425.60 NCPA not to exceed: Monthly:
$118.80
- Annual:
$1,425.60

230192 SA ON-SITE 24X7 CM MED GTWY 1YPP $1,150.04 1 $1,150.04 NCPA not to exceed: Monthly:
$95.84
- Annual:
$1,150.04

230042 SA ON-SITE 24X7 CM SM SRV 1YPP $759.05 1 $759.05 NCPA not to exceed: Monthly:
$63.25
- Annual:
$759.05

352508 SA PREF ASP 130 R5 ESXI R7.X 1YPP $387.65 1 $387.65 NCPA not to exceed: Monthly:
$32.30
- Annual:
$387.65

434846 UC ADVANCED LIC FIXED SUBS ADJ LP $0.00 1 $0.00
Functional Location : 5367282 CITY OF PALO ALTO- UCC, 3241 E BAYSHORE, PALO ALTO, CA, US, 94303 434846 UC ADVANCED LIC FIXED SUBS ADJ LP $0.00 1 $0.00
Functional Location : 3638486 CITY OF PALO ALTO- CITY HALL & PD, 250 HAMILTON AVE, PALO ALTO, CA, US, 94301
256194 SA ON-SITE 24X7 APPL LG SRV R2D 1YPP $2,851.20 1 $2,851.20 NCPA not to exceed: Monthly:
$237.60
- Annual:
$2,851.20

255851 SA ON-SITE 24X7 APPL MED SRV R2D 1YPP $1,425.60 2 $2,851.20 Description Recurring Qty Ext.

Recurring
NCPA not to exceed: Monthly: $118.80 - Annual: $1,425.60 230042 SA ON-SITE 24X7 CM SM SRV 1YPP $759.05 1 $759.05 NCPA not to exceed: Monthly: $63.25 - Annual: $759.05

352502 SA PREF S8300E R10.X ESXI R7.X 1YPP $352.40 3 $1,057.20 Docusign Envelope ID: 90B3ABDD-8B03-4453-917E-469F8D76241B Item 7
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NCPA not to exceed: Monthly: $29.37 - Annual: $352.40
Annual: $352.40
284959 SA PREF ADS SAL GTWY OVA $0.00 1 $0.00
284961 SA PREF ADS SLA MON OVA $0.00 1 $0.00
284960 UPG ADV ADS SAL GTWY OVA $0.00 1 $0.00
284962 UPG ADV ADS SLA MON OVA $0.00 1 $0.00
352508 SA PREF ASP 130 R5 ESXI R7.X 1YPP $387.65 2 $775.30 NCPA not to exceed: Monthly: $32.30 - Annual: $387.65

433926 AES DMCC ENTL LIC FXD SUBS ADJLP $0.00 56 $0.00 418056 AES DMCC ENTL R10 RBA FXD SUBS $0.00 56 $0.00
433924 AES BASIC TSAPI ENTL LIC FXD SUBS ADJLP $0.00 108 $0.00 418054 AES BASIC TSAPI ENTL R10 RBA FXD SUBS $0.00 108 $0.00 434845 UC ESSENTIALS LIC FIXED SUBS ADJ LP $25.20 252 $6,350.40 NCPA not to exceed: Monthly: $5.52 - Annual: $66.24

418132 UC ESSNTLS R10 RBA FXD SUBS $0.00 252 $0.00
434846 UC ADVANCED LIC FIXED SUBS ADJ LP $44.60 1284 $57,266.40 NCPA not to exceed: Monthly: $7.92 - Annual: $95.04

418133 UC ADV R10 RBA FXD SUBS $0.00 1284 $0.00
CC Subscription: April 1, 2026 - June 30, 2027 | 15 MONTH Functional Location : 3638486 CITY OF PALO ALTO- CITY HALL & PD, 250 HAMILTON AVE, PALO ALTO, CA, US, 94301
405787 CC ELITE VCE LIC FXD SUBS ADJLP $855.30 28 $23,948.40 NCPA not to exceed: Monthly: $57.02 - Annual: $684.24 – 15 Month: $855.30

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Avaya Subscription | UC 12-Month and CC 15-Month Term
Description Recurring Qty Ext.

Recurring

418118 CC ELITE R10 RBA FXD SUBS $0.00 28 $0.00
Annual Subtotal: $99,581.49

Signature Support | 12-Month: July 1, 2026 - June 30, 2027 Description Recurring Qty Ext.

Recurring
WTSSP45931 Signature Support - Avaya $29,950.00 1 $29,950.00 WT-SSP-AV-MS Signature Support - Avaya
WT-SSP-AV-BH Signature Support - Avaya Bundled Hours
1 6

Annual Subtotal: $29,950.00
XIMA Software License ADD
Description Price Qty Ext. Price
X0016 Realtime Agent $245.97 3 $737.91
PR-XC-Standard Pro-rated Xima Care Support $0.20 170 $34.00 Subtotal: $771.91
XIMA: July 6, 2026 - June 30, 2027
Description Recurring Qty Ext.

Recurring
Serial: CITYOFPALOALTO370D373E2CC216BA7B
XC-8x5-R [Renewal] Standard Xima Care Support Contract $944.00 1 $944.00 Docusign Envelope ID: 90B3ABDD-8B03-4453-917E-469F8D76241B Item 7
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XIMA: July 6, 2026 - June 30, 2027
Description Recurring Qty Ext.

Recurring
This contract includes:

Cancellations and Refunds
In the event of a cancellation of a Service agreement with Xima, the Customer will forfeit all prepaid services as no refunds will be issued.

Annual Subtotal: $944.00
TelStrat: July 6, 2026 - June 30, 2027
Description Recurring Qty Ext.

Recurring
Serial Number:

V2015033101

162-MAINT-ENG- Maintenance - Record Perpetual License-Y4 REC-01
$78.00 8 $624.00
Serial Number:

V2015070906

162-MAINT-ENG- Maintenance - Record Perpetual License-Y4 REC-01
$62.40 42 $2,620.80

Annual Subtotal: $3,244.80
Qty Product Description
28 Realtime Agent Seat
100 Chronicall
1 Custom Reports

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Vers.: Aug. 5, 2019

Page 18 of 18 ends

Professional Services - One-Time Charge
Description Price Qty Ext. Price
WTPSO45931 Subscription Conversion License Service -
Remote Refresh During Brief OT Event
$2,405.00 1 $2,405.00
Subtotal: $2,405.00
Summary
Description Recurring One-Time
Avaya Subscription | UC 12-Month and CC 15-Month Term $99,581.49 $0.00 Signature Support | 12-Month: July 1, 2026 - June 30, 2027 $29,950.00 $0.00 XIMA Software License ADD $0.00 $771.91
XIMA: July 6, 2026 - June 30, 2027 $944.00 $0.00
TelStrat: July 6, 2026 - June 30, 2027 $3,244.80 $0.00
Professional Services - One-Time Charge $0.00 $2,405.00 Subtotal: $133,720.29 $3,176.91
Total: $136,897.20

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Manager
Meeting Date: April 20, 2026
Report #:2602-6009
TITLE
FIRST READ: Adopt an Entertainment Zone Ordinance to Establish an Entertainment Zone on California Avenue as Recommended by the Economic Development Ad Hoc Committee; CEQA status – Categorically Exempt.

RECOMMENDATION
The Ad Hoc Economic Development Committee and staff recommends that the City Council adopt an Entertainment Zone Ordinance to Establish an Entertainment Zone on California Avenue.

BACKGROUND AND ANALYSIS
During the March 18 Ad Hoc Economic Development Committee meeting1, the committee reviewed the recommendation presented by staff and unanimously voted the following motion2:

Recommend the City Council adopt an ordinance adding Chapter 9.05 to the Palo Alto Municipal Code to establish and regulate an entertainment zone pursuant to Senate Bill 969 to allow for the sale of certain alcoholic beverages by licensed establishments for consumption outside in the public right of way on the car-free portion of California Avenue subject to a special event permit including Romona Street, and direct staff to implement the following changes:

1. Allow for ongoing activation of entertainment zone by allowing for ongoing permits from business owners
1 March 18th Economic Development Agenda:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=19967 2 March 18th Economic Development Committee Action Minutes:
https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=19968&compileOutputType =1
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2. Provide staff the flexibility to expand the entertainment zone to the closed portion of Ramona Street after outreach of Ramona Street merchants

3. Modify the special event permit if necessary to effectuate this direction The Economic Development Staff Report 2602-5984 5 provides additional context. The proposed recommendations are intended to support the Council’s priority to enhance business vibrancy efforts.

This report implements a portion of the Committee’s recommendation to advance the Entertainment Zone Ordinance on Car-Free California Avenue. Staff will return to the full City Council to consider expanding permissive use to the downtown area, specifically Car-Free Ramona Street, as well as any needed modifications to permitting requirements. This approach supports California Avenue merchants in time for the World Cup and upcoming Cal Ave activations, while allowing additional outreach regarding Car-Free Ramona Street and further review of the Special Event permit.

Due to the unanimous vote, the first reading of the ordinance has been provided on the consent calendar for approval. If approved on consent, the second reading would be taking place May 4, 2026, on the City Council’s consent calendar. The ordinance will become effective 30-days after the second reading, which means the entertainment zone may commence in early June.

FISCAL/RESOURCE IMPACT
Establishment of an Entertainment Zone requires the one-time administrative costs associated with ordinance and administrative guideline development. Staff will recommend that ongoing costs to support Entertainment Zone operation be recovered through permitting fees to the extent necessary. No additional funding is needed at this time.

STAKEHOLDER ENGAGEMENT
Economic Development staff met with representatives from the California Department of Alcoholic Beverage Control, County of Santa Clara Department of Public Health and the City of San Jose Office of Economic Development to gain a comprehensive understanding of how an entertainment zone operates. Staff met multiple times with California Avenue merchants to ensure the Zone supports California Avenue merchants. The proposed hours, boundary, and additional recommended requirements reflect coordination with the merchants. In addition, internal coordination took place with the Police Department to assess operational, and enforcement considerations specific to Palo Alto. Additional outreach with the Ramona Street stakeholders is forthcoming.

5 Economic Development Staff Report 2602-5984:
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86868&dbid=0&repo=PaloAlto Item 8
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ENVIRONMENTAL REVIEW
This action is categorically exempt under California Environmental Quality Act (CEQA) regulations 15305 (minor alterations in land use limitations) and 15323 (normal operations of facilities for public gatherings).

ATTACHMENTS
Attachment A: Entertainment Zone Ordinance
APPROVED BY:

Ed Shikada, City Manager
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NOT YET APPROVED
1 Ordinance No. ____
Ordinance of the Council of the City of Palo Alto Creating New PAMC Chapter 9.05 (Entertainment Zones) and Establishing an Entertainment Zone on a Portion of California Avenue

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. In 2025, the State of California authorized cities to create entertainment zones with the passage of SB 969 (2025), as codified in various sections of the Business and Professions Code (BPC).

B. In compliance with BPC section 25692, City staff have notified and received feedback from the Palo Alto Police Department about (1) potential health and safety impacts that might be generated by the entertainment zone and strategies to mitigate those impacts; and (2) the zone’s proposed boundaries, days and hours of operation, types of alcoholic beverages permitted, and approved nonglass and nonmetal containers.

C. The City Council now desires to adopt this ordinance to create new Chapter 9.05 in the Palo Alto Municipal Code (PAMC) to implement entertainment zones in Palo Alto . This ordinance will also establish one entertainment zone on the car-free section of California Avenue.

SECTION 2. New Chapter 9.05 (Entertainment Zones) is hereby added to Title 9 (Public Peace, Morals, and Safety) of the Palo Alto Municipal Code to read as follows:

9.05.010 Purpose
The purpose of this Chapter is to implement Senate Bill 969 (2025) as codified in various sections of the Business and Professions Code through the establishment and regulation of entertainment zones to allow the purchase of open container alcoholic beverages for consumption outside in common spaces such as plazas, public streets, sidewalks or public rights-of-way during certain hours.

9.05.020 Definitions.

The definitions set forth in this Section shall govern the application and interpretation of this Chapter.

"ABC" means the California Department of Alcoholic Beverage Control.

"Entertainment Zone" has the meaning set forth in Section 23039.5 of the California Business and Professions Code, as may be amended; and their locations are described under PAMC Section 9.05.050.

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"Entertainment Zone Event" means an event that occurs within the boundaries of an Entertainment Zone in compliance with state law, local laws, and regulations, including this Chapter 9.05, and subject to the requirements of a special event permit issued by the City.

9.05.030 Entertainment zone requirements.
(a) All persons and legal entities of any type (including businesses and non-profit organizations) sponsoring an Entertainment Zone Event, or selling alcoholic beverages at an Entertainment Zone Event shall comply with all applicable state and local laws and regulations, including:

1. All applicable ABC license and permitting requirements;

2. Sections 23357, 23358, 23396 of the California Business and Professions Code, as may be amended from time to time regulating licensed beer manufacturers, licensed winegrowers, and on-sale licensees, respectively;

3. All other laws governing the sale and consumption of alcoholic beverages; and

4. All permit requirements for special events issued by the City. (b) Open alcoholic beverages may only be consumed within an Entertainment Zone during an Entertainment Zone Event, subject to any other restrictions imposed by state or local law, regulations, and permits.
(c) All open alcoholic beverages consumed during an Entertainment Zone Event may only be purchased from a premises located within the Entertainment Zone that is authorized under California Business and Professions Code Section 23357, 23358, 23396, as may be amended, to permit the consumers to leave the premises with open containers of alcoholic beverages for consumption off the premises, or an organization that is authorized by an ABC special event permit or license to make such sales within the Entertainment Zone. (d) All types of beer, wine, spirits, and other alcoholic beverages that are allowed for sale and consumption by the State of California are permitted within an Entertainment Zone, subject to any further restrictions imposed by regulations, license, or permit conditions. This subsection does not authorize any specific ABC licensee to sell or serve types of alcohol not permitted by their license.

9.05.040 Entertainment zone hours.

Outdoor consumption of alcoholic beverages during an Entertainment Zone Event shall only occur between the hours of 12 noon and 10 p.m., inclusive, and on Sundays from 10 a.m. to 10 p.m., inclusive, subject to more restrictive days or times imposed by state or local law, regulations, or permits.

9.05.050 Entertainment zone locations.
(a) Car-Free California Avenue. All plazas, pedestrian malls, public streets, sidewalks and public rights-of-way that are located on either side of California Avenue between El Camino Real and Birch Street are hereby designated as the California Avenue Entertainment Zone under Sections 23039.5 and 25690 of the California and Business and Professions Code.

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9.05.060 Entertainment zone implementation.
(a) Within 90 days of the establishment or modification of an Entertainment Zone, the City’s Office of Economic Development, following consultation with the Police Department, shall provide the following information to ABC, pursuant to Section 25690 of the California Business and Professions Code:

1. A copy of the ordinance establishing or modifying the Entertainment Zone;

2. Information as may be necessary to identify the boundaries of the Entertainment Zone;

3. The days and hours of operation of the Entertainment Zone;

4. The types of alcoholic beverages permitted within the Entertainment Zone; and

5. The approved nonglass and nonmetal containers in which alcoholic beverages may be authorized.
(b) The City Manager or designee is authorized to promulgate regulations under this Chapter 9.05. The regulations shall include the following requirements:

1. Establish a process or procedure to readily identify individuals purchasing or consuming alcoholic beverages within the Entertainment Zone as being 21 years of age or older;

2. Any person or organization seeking a special events permit shall comply with the insurance requirements applicable to that permit; and

3. Any additional requirements not otherwise imposed by state or local law, including but not limited to additional requirements for approved beverage containers, additional restrictions on hours and/or location of operation for the Entertainment Zone Events, and other time, place and manner restrictions.
(c) Upon adoption or revision of the regulations, the Office of Economic Development shall transmit a copy of the regulations to ABC as applicable under ABC requirements. (d) Any holder of an ABC license or permit that wishes to allow customers to leave the premises with open containers of alcoholic beverages for consumption off the premises during an Entertainment Zone Event shall provide the City a copy of the notice provided to ABC under Section 23357, 23358, 23396, or any other applicable section of the California Business and Professions Code, as applicable, at the same time such notice is provided to ABC. (e) In compliance with Section 25692(b) of the California Business and Professions Code, the City Manager or designee shall review the operation of the entertainment zone every two years following the adoption of the entertainment zone to ensure that the entertainment zone is being maintained in a manner that protects the health and safety of the general public. This review shall be conducted in consultation with the Palo Alto Police Department and any reports produced during the review shall be made available to the Department upon request.

SECTION 3. Section 9.04.010 of Chapter 9.04 (Alcoholic Beverages) of Title 9 (Public Peace, Morals, and Safety) of the Palo Alto Municipal Code is hereby amended to add subsection (c) to read as follows (new text in underline):

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9.04.010 Streets, sidewalks, highways, alleys - Consumption of alcoholic beverages prohibited.
(a) It shall be unlawful for any person to consume any alcoholic beverage upon any street, sidewalk, highway or alley except as may be authorized by City Council. (b) Notwithstanding subsection (a) of this section, alcoholic beverages may be consumed in a city-owned or controlled right-of-way by patrons within legally permitted eating establishment seating areas in accordance with, and subject to a conditional use permit issued pursuant to § 18.76.010 of this code.
(c) Notwithstanding subsection (a) of this section, alcoholic beverages may be consumed in a city-owned or controlled right-of-way when duly permitted within an Entertainment Zone and in full compliance with Chapter 9.05 (Entertainment Zones) and all applicable regulations, and permit and license conditions.

SECTION 4. 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 5. Effective Date. This ordinance shall be effective on the 31st day after adoption.

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SECTION 6. CEQA. The City Council finds and determines that this Ordinance is categorically exempt under CEQA regulation 15305 (minor alterations in land use limitations) and 15323 (normal operations of facilities for public gatherings).

INTRODUCED:

PASSED:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

ATTEST:

____________________________ ____________________________ City Clerk Mayor

APPROVED AS TO FORM: APPROVED:

____________________________ ____________________________ Assistant City Attorney City Manager

____________________________
Economic Development Manager

____________________________
Chief of Police

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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: April 20, 2026
Report #:2602-5891
TITLE
Approval of Contract Amendment No. 3 to Contract S25190354 with Larratt Brothers Plumbing Inc. in the Amount of $950,000, for a Revised Total Not to Exceed $1,445,000 and to Extend the Contract Term for One Additional Year ending July 21, 2027, for the Residential Emergency Water Heater Replacement Pilot Program Within Electrification Programs; CEQA Status – Not a Project.

RECOMMENDATION
Staff recommends that City Council approve and authorize the City Manager or their designee to execute Amendment No. 3 (Attachment A) to Contract S25190354 with Larratt Brothers Plumbing Inc. for the Emergency Water Heater Replacement (REWHR) Pilot Program, increase the contract in an amount not-to-exceed $950,000, and amend Exhibit C to add one measure covering administrative fees and to extend the contract term by one additional year to a three- year term. This amendment results in a revised total contract not-to-exceed amount of $1,445,000.

EXECUTIVE SUMMARY
Staff is seeking approval for contract amendment number 3 to Contract S25190354 for the Single-Family Residential Emergency Water Heater Replacement (REWHR) Pilot Program to contribute to the success of the Advanced Heat Pump Water Heater (HPWH) Pilot Program in replacing a total of 1,000 gas water heaters. Staff is requesting to extend the REWHR contract term by one additional year, increase the contract by an additional $950,000, and update Exhibit C to continue offering the REWHR Pilot Program with a minor program improvement.

Staff will offset the amendment amount by disencumbering $950,000 from the previous vendor under contract No. C23181953A1 for the Advanced HPWH Pilot Program. Emergency water heater replacements have accounted for more of the HPWH replacements than initially 1 Contract S25190354 with Larratt Brothers Plumbing
http://www.paloalto.gov/files/assets/public/v/1/utilities/linking-documents/s25190354-larrett-brothers- plumbing.pdf
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expected, the program receives high customer satisfaction and is helping the City achieve the goal of replacing 1,000 gas water heaters with HPWHs. The current two-year contract is set to end on July 31, 2026. This amendment will extend the contract term to July 31, 2027This amount is part of the originally budgeted HPWH program approved by Council on October 3, 2022, funded through the Electric Utility’s Electrification Reserve and Gas Cap and Trade revenues (see Staff Report 14720 and Council Resolution 10075, and Resolution 10076).3

BACKGROUND
Staff and the community have been working to achieve the community’s greenhouse gas (GHG) emissions reduction goals of reducing GHG emissions 80% from 1990 levels by 2030, as adopted in the Sustainability and Climate Action Plan (S/CAP). The current S/CAP was adopted in June 2023 along with the 2023-2025 S/CAP Work Plan.4 The 2023-2025 S/CAP Work Plan included work item 2.1 D, which called for the launch of a HPWH pilot to achieve the replacement of 1,000 gas water heaters with HPWHs. The “Advanced HPWH Pilot Program” was launched in March 20235. It includes rebates for residents who hire their own contractors and a Full-Service program for those who want the City to take care of the whole process, as well as the addition of the REWHR program in September 2024. As of January 2025, 743 installations had been completed across the City’s Rebate, Full-Service, and REWHR programs, with 195, 489, and 59 installations completed under each program, respectively since the Advanced HPWH Pilot Program was adopted in October 2022. The REWHR program was created to facilitate the swift replacement of gas water heaters with heat pump alternatives, addressing the gap left by the Full Service HPWH program, which was not designed for emergency installations. The 2026- 2027 S/CAP Work Plan was approved by City Council on March 2, 2026, continuing the residential electrification programs.6
3 Staff Report 14720, October 3, 2022:
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82036&dbid=0&repo=PaloAlto&searchid=595cfc83- 730f-4a8e-acb8-2a711994f8de&cr=1 ; Council
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=61564&dbid=0&repo=PaloAlto Resolution of the Council of the City of Palo Alto Adopting Design Guidelines for an Advanced Heat Pump Water Heater Pilot Program to Further the City’s Sustainability and Climate Action Plan Goals https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=61564&dbid=0&repo=PaloAlto; and Council https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=61565&dbid=0&repo=PaloAlto Resolution of the Council of the City of Palo Alto Establishing an Electrification Reserve and Amending the Electric Utility Reserves Management Practices
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=61565&dbid=0&repo=PaloAlto 4 2023-2025 S/CAP Work Plan
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82107&dbid=0&repo=PaloAlto&searchid=2893517 6-b25e-40fe-8f67-106930338767&cr=1
5 On October 3, 2022, City Council approved the contract with Synergy Companies, which includes, among other tasks, the administration of an Advanced Heat Pump Water Heater Pilot (https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=81976&dbid=0&repo=PaloAlto) 6 2026-2027 S/CAP Work Plan
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=85324&dbid=0&repo=PaloAlto&searchid=b2427f35 -4f5e-45e1-a2a0-3fac0fad9e95
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The REWHR program has received high customer satisfaction, achieving a score of 9 out of 10.

Installations have been successfully completed within two business days, demonstrating Larratt Bros Plumbing Inc.'s commitment to providing excellent customer service. Their unique customer service tool, called Plunjr, allows homeowners to enter the program quickly and obtain an assessment and quote for a new HPWH.

The REWHR program was initially established in August 2024 for $85,000, and the program launched to the community in September 2024. The contract was first amended11 in October 2024 to accommodate an increased budget of $410,000. Amendment No. 212 made a clerical correction to add an optional Additional Services Provision. In November 2025, a Task Order was executed that allowed Larratt Bros Plumbing Inc. to temporarily serve the Full Service HPWH program during the transition away from the City’s contract with Synergy Companies (contract No. C23181953A), to a new Turnkey Home Electrification Program developed with Franklin Energy Services (contract No. C25193676) called “Electrify My Home.”13 Due to increased incentives from the State’s TECH Clean California program, heightened demand to complete installations prior to the expiration of Federal Tax Credits, and higher participation from the Full Service HPWH program, more funds were utilized at a faster pace than anticipated. The City will receive an estimated $170,000 in reimbursement from the State for the TECH funds disbursed. Amendment number 3 will ensure the REWHR program can continue for one additional year, serving an estimated 150 more HPWH installations (generated from an estimated 300 home assessments). This extension will facilitate further installations throughout Palo Alto, enhancing the transition from gas to heat pump water heaters under emergency circumstances.

ANALYSIS
Gas tank water heaters typically last between 10 to 12 years. It is not uncommon for homeowners to wait until the water heater shows signs of needing a replacement before they call a plumber. Up to 85 percent of water heater replacements occur in an “emergency” when the current water heater fails.14 In such an emergency scenario, the task of switching from a gas water heater to an HPWH is often too complicated and takes too much time for the average homeowner to handle when they are focused on restoring hot water to their family. The REWHR Pilot Program is designed to serve the many homes experiencing water heater failures that require rapid action, with a goal to restore hot water to customers within two business 11 Amendment No. 1 with Larratt Brothers Plumbing
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83038&dbid=0&repo=PaloAlto&searchid=b540650 7-db33-4482-b4e6-fa48c313aef6
12 Contract S25190354 Amendment No. 2 with Larratt Brothers Plumbing http://www.paloalto.gov/files/assets/public/v/1/utilities/linking-documents/s25190354a2-larratt-bros- amendment-no-2.pdf
13 https://www.paloalto.gov/Departments/Utilities/Electrification/Electrify-My-Home 14 New Buildings Institute, 2022. https://newbuildings.org/scaling-up-market-transformation-for-heat-pump- water-heaters/
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days while helping the homeowner switch from a gas water heater to an HPWH. Customers could opt to pay a premium covering work outside of standard business hours if faster service is desired.

Summary of Proposed Contract Terms
Staff recommends extending the current Residential Emergency Water Heater Replacement (REWHR) program contract term by one additional year, increasing the contract not-to-exceed amount by $950,000, and amending Exhibit C to add one measure covering contractors’ administrative fees. This amendment results in a revised total contract not-to-exceed amount of $1,445,000.

Larratt Brothers Plumbing Inc. requires a minimum of eight installations per month to cover the costs of a dedicated program manager that can provide an immediate response to customers with water heater emergencies. The proposed administrative fee measure aims to help Larratt Brothers Plumbing Inc. maintain full-time staff dedicated to the City's program during periods of low sign-ups. Participation in the REWHR program fluctuates significantly, resulting in some months with minimal engagement. The team is still determining the optimal marketing strategies for the REWHR program. Staff proposes an $8,000 administrative fee in any month with fewer than 20 sign-ups (equivalent to 15 home assessments or eight HPWH installations) to ensure program continuity. Because sign-ups can be difficult to track, the contract instead measures home assessments (clearly identified on monthly invoices). The month with the highest home assessments was October 2025 with 20 site assessments. The month with the lowest number of home assessments was April 2025 with only 4 site assessments. The average number of home assessments is 10 per month. While the average to date is below the proposed threshold of 15 home assessments per month, staff plans to increase communications and marketing outreach to customers in concert with the “Electrify My Home” program including website upgrades and doorhangers to spread the word about this program.

Acknowledging the monthly administrative cost, staff is only recommending a one year extension to evaluate the performance and utility of this service.

FISCAL/RESOURCE IMPACT
Funding for this amendment is available under the FY 2026 budget for the Advanced Heat Pump Water Heater Pilot Program, which includes budgets in both the electric and gas utility funds and is funded by a combination of the Electric Utility’s Electrification Reserve funds and Gas Cap and Trade revenues.19
19 For the Full Service HPWH Program, City Council approved $1.25 million from Gas Cap and Trade Revenues, $4.5 million from Electrification Reserve (funded by the electric utility’s Electric Special Projects Reserve) discussed at the September 27, 2022 Council meeting, see
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=81997&dbid=0&repo=PaloAlto&searchid=67b1ec98 -3e85-4ae9-868b-c7513b8ff43e&cr=1; and approved at the October 3, 2022 Council meeting, see Item 9
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The HPWHs installed through the REWHR Pilot will count towards the goal of 1,000 HPWHs in Palo Alto. The additional funds requested here come from disencumbering $950,000 from the previous vendor under contract No. C23181953A for the Advanced HPWH Pilot Program.

Program promotion and outreach will be funded through the climate action outreach budget established in the FY 2026 Adopted Budget. Funding in subsequent fiscal years is subject to Council’s approval of annual budget appropriations.11

STAKEHOLDER ENGAGEMENT
Feedback collected from program participants and collaboration with strategic partners have been instrumental in shaping this program. Engagement with stakeholders like Silicon Valley Clean Energy and others ensures program alignment and efficacy.

ENVIRONMENTAL REVIEW
Council’s approval of the attached agreement described in this staff report does not meet the definition of a project under the California Environmental Quality Act (CEQA), pursuant to the California Public Resources Code Section 21065, because it is not an activity that will cause a direct physical change in the environment. In the alternative, Council’s approval of this agreement is exempt from review under CEQA Guidelines Section 15302, as replacement of existing facilities, and Section 15308, as an action taken for the protection of the environment.

ATTACHMENTS
Attachment A: Contract S25190354 Amendment No. 3 with Larratt Brothers Plumbing APPROVED BY:

Alan Kurotori, Director Utilities
Staff: Linda Grand, Sustainability Programs Administrator https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82036&dbid=0&repo=PaloAlto&searchid=1d57fc3a -c6b9-46a6-aa21-ab6b0fe2a000
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AMENDMENT NO. 3 TO CONTRACT NO. S25190354

BETWEEN THE CITY OF PALO ALTO AND
LARRATT BROS PLUMBING INC.

This Amendment No. 3 (this “Amendment”) to Contract No. S25190354 (the “Contract” as defined below) is entered into as of March 16 , 2026, and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and LARRATT BROS PLUMBING INC. , a California corporation, located at 88 Elmira Street, San Francisco, CA 94124 (“CONSULTANT”).

CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment.

R E C I T A L S

A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of providing Emergency Water Heater Replacement Services (the “Project”) to customers in single family homes in connection with the Project, as detailed therein.

B. T he Parties now wish to amend the Contract in order to increase compensation by Nine Hundred Fifty Thousand Dollars ($950,000) from Four Hundred Niney -Five Thousand dollars ($495,000) to a new total not to exceed One Million, Four Hundred Forty -Five Thousand Dollars ($1,445,000), and to extend the term until July 21, 2027, as detailed herein.

NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree:

SECTION 1. Definitions. The following definitions shall apply to this Amendment:

a. Contract. The term “Contract” shall mean C ontract No. S25190354 between CONSULTANT and CITY, dated August 1, 2024, as amended by:

Amendment No. 1, dated October 7, 2024
Amendment No. 2, dated November 20, 2024

b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract.

SECTION 2. Section 2 “TERM” of the Contract is hereby amended to read as follows:

“SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through July 21, 2027, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.”

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SECTION 3. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to read as follows:

“SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed One Million Three Hundred Thousand Five Hundred Dollars ($1,300,500). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.

Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.)
In addition to the not- to-exceed compensation specified above, CITY has set aside the not-to-exceed compensation amount of One Hundred Forty-Four Thousand Five Hundred Dollars ($144,500) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed One Million, Four Hundred Forty-Five Thousand Dollars ($1,445,000), as detailed in Exhibit C.

a. Exhibit “ B” entitled “ SCHEDULE OF PERFORMANCE ” , AMENDED, REPLACES PREVIOUS.

b. Exhibit “ C-1” entitled “ SCHEDULE OF RATES ”, AMENDED, REPLACES PREVIOUS.

SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect.

SECTION 6 . Incorporation of Recitals . The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference.

(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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SIGNATURES OF THE PARTIES

IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written.

CITY OF PALO ALTO

_____________________________
City Manager

APPROVED AS TO FORM:

_____________________________
City Attorney or designee

LARRATT BROS PLUMBING, INC.

Officer 1

By:______________________________

Name:___________________________

Title:____________________________

Officer 2 (Required for Corp. or LLC)

By:______________________________

Name:___________________________

Title:____________________________

Attachments:

Exhibit “B” entitled “SCHEDULE OF PERFORMANCE”, AMENDED, REPLACES PREVIOUS.

Exhibit “C-1” entitled “SCHEDULE OF RATES”, AMENDED, REPLACES PREVIOUS.

Docusign Envelope ID: 2CA5A8B5-5391-45E8-89F8-6822631BE3C3 President
Aaron Gianni
Andrew Geller
Field Director
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EXHIBIT B

SCHEDULE OF PERFORMANCE
AMENDMENT NO. 3, AMENDED, REPLACES PERVIOUS

CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT an d CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY.

Milestones Completion
Number of Days/Weeks (as
specified below) from NTP

Task 1 HPWH ER Kick-off and Set up
Task 1.1 HPWH ER Kick-off
Task 1.2 Develop HPWH ER Pilot Documents
Task 1.2.1 Develop Program Policies and Procedures Manual Task 1.2.2 Develop Customer Site Assessment Report and Estimate Task 1.2.3 Develop Customer Site Assessment Agreement
Task 1.2.4 Develop Program Participation Agreement
Task 1.2.5 Develop Customer Feedback Forms
Task 1.2.6 Develop Program Report Template
Task 1.2.7 Develop Program Invoice Template
Task 1.3 Transmit Customer Information to CITY’s Program Tracking Database Task 1.4 Setup and testing of program invoice and rebate submission Task 1.5 Provide Eligible Measure List Updates
Task 1.6 Enroll in State or Local Financing Programs

30 days

Task 2 Program Implementation
Task 2.1 Implement Marketing and Outreach Activities
Task 2.2 Develop Customer Intake & hotline
Task 2.3 Perform Customer Site Assessment and Deliver Customer Estimate Task 2.4 Execute Program Participation Agreement, Collect Customer Payments, and Enroll Customers in Financing Programs
Task 2.5 Install Measures and Provide Post-Installation Quality Control Task 2.6 Provide Customer Service, Feedback and Issue Resolution

Ongoing

Task 3 Program Invoicing and Reporting
Task 3.1 Data Management
Task 3.2 Reporting
Task 3.3 Invoicing

Ongoing
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Task 4 Program Close Out
Task 4.1 Resolve Outstanding Jobs in Progress
Task 4.2 Develop and Submit Program Report

Ongoing

Within 30 days
before end of Term

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-1

SCHEDULE OF RATES

The figures set forth in this Exhibit C-1 include all of CONSULTANT’s costs to perform all of the Services listed in this Agreement that correspond to that Eligible Measure, including, without limitation, CONSULTANT’s administrative costs, marketing and outreach costs, implementation (materials and labor) costs, Electrification Site Preparation Services, Electrification Labor Rates and Extended Parts and Labor Warranty costs. No additional fees or charges will be required of CITY or its customers for CONSULTANT to perform the Services listed in this Agreement.

CONSULTANT’s schedule of rates is as follows:

Eligible Measure Description of Measure Cost to
Customer (not
payable by
City):*

Installed cost
per unit (incl
equipment +
labor) ($)
Cost to City:

Installed cost
per unit (incl
equipment +
labor) ($)
Heat pump water
heater (80 gallon,
240V) - weekday
hours
Remove existing gas water heater,
properly dispose of the old water heater
and platform, cap the gas line, install the
drain pan, install the heat pump water
heater and condensate draining per
manufacturer’s instruction based on
location, install new safety straps
meeting code, install noise and vibration
reduction components (flexible pipe
connectors, rubber mat, rubber grommet
at pipe-wall penetrations, rubber
grommet where seismic strapping meets
wall,) install expansion tank, complete
job closure paperwork, repair and paint
walls to original condition as required,
standard one (1) year labor warranty,
and manufacturer's product warranty.
$8,770 N/A
Heat pump water
heater (65 gallon,
240V) - weekday
hours
$6,850 N/A
Heat pump water
heater (50 gallon,
240V) - weekday
hours
$6,630 N/A
Heat pump water
heater (80 gallon,
120V) - weekday
hours
$8,990 N/A
Heat pump water
heater (65 gallon,
120V) - weekday
hours
$7,150 N/A
Emergency water
heater loaner -
Replace-in-kind tank-type water heater
from loaner-reuse supply, properly
N/A $1,800
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weekday hours dispose of old water heater. When
replacing with HPWH at a later date,
keep loaner equipment for future
projects. The customer shall pay the
$1800 at the time it is installed. The
amount will be considered a “down
payment” towards their electrification
and noted on the final invoice as a credit
from the CITY.

Assessment and
Project Estimate -
with
phone/chat/emai
l support 24/7
Utilizing Plunjr + QuitCarbon platform -
all homes will receive an assessment and
a Project Estimate - this row covers
remote service (not in-person at the
homeowner's home)
N/A $250
(Optional) Site
visit for
assessment and
project Estimate -
normal weekday
hours -
When Larratt Bros staff go on-site to
perform assessment and prepare a
Project Estimate. Note that this charge is
instead of, not in addition to the virtual
assessment charge above.

N/A $295
Permit
Coordination,
Optional use for inspectors to use Plunjr
app, at the discretion of the City.

$500 N/A
Permit cost The cost of the HPWH permit will be
covered by the City.

N/A $247, subjected
to annual
adjustment to
permit cost
Administrative
Fee
Administrative fee of $8,000 per month
for any month with fewer than 15 site
Assessments
NA $8,000
Non-standard Site Preparation and/or Installation Services costs for a HPWH installation

Install 18" X 24"
Louver Vents into
existing door
$125 N/A
Provide and
Install
Condensate
Pump
$165 N/A
Plumb out
Temperature-
Pressure Relief
Valve and
$500 N/A
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condensate to
exterior away
from foundation
per building code
requirements
Provide and
Install
Thermostatic
Mixing Valve
$500 N/A
Electrician, labor
hours
Per Hour Price. Non-standard labor costs
will be estimated as part of the Project
Estimate phase.
$210 N/A
Plumber, labor
hours
Per Hour Price. Non-standard labor costs
will be estimated as part of the Project
Estimate phase.
$210 N/A
Electrical services

Install a new
circuit breaker
and up to 30 ft
circuit between
HPWH and
electrical panel
$1,650 N/A
Additional Circuit
run (per
additional 50
feet)
$1,450 N/A
Electric panel
replacement
Remove existing electrical panel,
properly dispose of old equipment,
replace with new panel including
capability for future home electrification
and EV readiness, include two additional
reserve breaker spaces above and
beyond electrification readiness, replace
circuit breakers as required, repair and
paint walls to original condition as
required, standard one (1) year labor
warranty, and manufacturer's product
warranty.

Time and
Materials -
this work is
highly variable
in cost, and
cannot be
reduced to a
single pre-
determined
price
N/A
Sub-panel
replacement /
installation
Add electrical subpanel, properly dispose
of old equipment, ensure home includes
capability for future home electrification
and EV readiness, include two additional
$1,650 N/A
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reserve breaker spaces above and
beyond electrification readiness, replace
circuit breakers as required, repair and
paint walls to original condition as
required, standard one (1) year labor
warranty, and manufacturer's product
warranty.

Install space-
saver quad
breaker (tandem
breaker)
Remove existing 120V standard-width
breaker, install tandem breaker to
maximize use of physical space in panel.
$250 N/A
Program Set Up Costs - Pilot kick off, Develop Pilot documents, Set up and testing of project invoice submissions and rebate applications.

Larratt Bros set
up
Includes a maximum of 16 person/hours
of meetings for Larratt Bros staff.

Additional meeting time is noted in
Comments section below.

N/A $5,500
QuitCarbon set
up
Includes a maximum of 8 person/hours
of meetings for QuitCarbon staff.

Additional meeting time is noted in
Comments section below.

N/A $2,000
Total N/A $7,500
Optional Additional Measures
Heat pump water
heater (80 gallon,
240V) -
weeknight,
weekend, holiday
hours
$10,197 N/A
Heat pump water
heater (65 gallon,
240V) -
weeknight,
weekend, holiday
hours
$8,085 N/A
Heat pump water
heater (50 gallon,
240V) -
weeknight,
weekend, holiday
hours
$7,293 N/A
Heat pump water
heater (80 gallon,
$10,232 N/A
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120V) -
weeknight,
weekend, holiday
hours
Heat pump water
heater (65 gallon,
120V) -
weeknight,
weekend, holiday
hours
$8,201 N/A
Emergency gas
water heater
loaner -
weeknight,
weekend, holiday
hours
$500 $1,800
Project
Assessment &
estimate - remote
- weeknight,
weekend, holiday
hours
Utilizing Plunjr + Larratt Bros call center
staff, with the benefit of QuitCarbon
virtual assessments - note that some
homes will receive this remote project
bid during non-weekday business hours
N/A $250
(Optional) Site
visit for
assessment and
project estimate-
weeknight,
weekend, holiday
hours - upcharge
When Larratt Bros staff go on-site to
perform assessment and/or prepare a
bid outside of normal business hours,
this additional charge will apply. Note
that this charge is instead of, not in
addition to, the site visits during normal
business hours that is noted in the first
section above.
$155 $295
Electrician Hourly
Rate - weeknight,
weekend, holiday
hours
Per Hour Price. Non-standard labor costs
will be estimated as part of the Project
Estimate phase.
$400 N/A
Plumber Hourly
Rate - weeknight,
weekend, holiday
hours
Per Hour Price. Non-standard labor costs
will be estimated as part of the Project
Estimate phase.
$400 N/A
Extended Parts
and labor
warranty
Include 2 yr warranty from the date of
installation
$500 N/A
Meetings, in excess of those listed in project Scope $150/hour Parts and labor shall be covered for one year. $0
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Water Heaters installed in basements, attics, or any other place other than the garage or outside (ground level) closet shall be accessed with an additional cost. Protection of floors, walls, or other finishes shall be assessed on an individual basis and the cost will vary depending on the level of
protection required.
$500-$1,000+
* Note that the Costs to the Customer detailed here are not payable by the City and are only included here to establish the agreed upon pricing to be charged by CONSULTANT to customers.

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Certificate Of Completion
Envelope Id: 2CA5A8B5-5391-45E8-89F8-6822631BE3C3
Status: Completed
Subject: Complete with Docusign: S25190354 Amend 3 final approved rev 3.31.26.pdf Source Envelope:

Document Pages: 11
Signatures: 2
Envelope Originator:

Certificate Pages: 2
Initials: 0
Ann Marie Romero
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
250 Hamilton Ave
Palo Alto , CA 94301
[email protected]
IP Address: 2601:205:4a80:e
Record Tracking
Status: Original
3/31/2026 9:47:20 AM
Holder: Ann Marie Romero
[email protected]
Location: DocuSign
Security Appliance Status: Connected
Pool: StateLocal
Signer Events
Signature
Timestamp
Aaron Gianni
[email protected]
President
Security Level: Email, Account Authentication
(None)

Signature Adoption: Pre-selected Style
Using IP Address: 73.189.115.94
Sent: 3/31/2026 9:49:21 AM
Viewed: 3/31/2026 12:43:27 PM
Signed: 3/31/2026 12:43:46 PM
Electronic Record and Signature Disclosure:

Not Offered via Docusign
Andrew Geller
[email protected]
Field Director
Security Level: Email, Account Authentication
(None)

Signature Adoption: Pre-selected Style
Using IP Address:
2601:640:8e80:33ad:e8df:59de:ffee:6b10
Sent: 3/31/2026 12:43:48 PM
Viewed: 3/31/2026 4:04:28 PM
Signed: 3/31/2026 4:07:00 PM
Electronic Record and Signature Disclosure:

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Signature
Timestamp
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Timestamp
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Status
Timestamp
Intermediary Delivery Events
Status
Timestamp
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Status
Timestamp
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Timestamp
Rachael Romero
[email protected]
Administrative Associate II
Copa
Security Level: Email, Account Authentication
(None)
Sent: 3/31/2026 4:07:02 PM
Viewed: 3/31/2026 4:37:23 PM
Electronic Record and Signature Disclosure:

Not Offered via Docusign
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Item 9
Attachment A - Contract
S25190354 Amendment No.
3 with Larratt Brothers
Plumbing

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CITY COUNCIL
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: April 20, 2026
Report #: 2604-6210
TITLE
4075 El Camino Way [23PLN-00202]: Recommendation to Decline Adoption on Second Reading of an Ordinance Adopting an Amendment to a Planned Community Ordinance (PC-5116) to Allow for Modifications to an Existing 121-Unit Assisted Living and Memory Care Facility. First Reading Adoption was on March 16, 2026. CEQA Status: Exempt from the Provisions of the California Environmental Quality Act (CEQA) in Accordance with CEQA Guidelines Section 15301 (Modifications to Existing Facilities).

RECOMMENDATION
Staff recommends that the City Council:

1. Decline to adopt the second reading ordinance allowing the application to be withdrawn as requested by the applicant.

BACKGROUND
On March 16, 2026, the City Council held a public hearing and, after reducing the number of new units on the site from eleven to seven, approved the project and planned community ordinance on a 7-0 vote.

On March 30, 2026, Planning and Development Services received written notice from the applicant's representative withdrawing the subject application. In light of the Council’s action reducing the scope of the project to seven units, the applicant is no longer interested in moving forward. In light of this request to withdraw the application, staff recommends that the City Council decline to adopt the attached ordinance on second reading.

As an alternative to the staff recommendation, three councilmembers may pull this item from the consent calendar to schedule a hearing. An agendized hearing would afford the City Council an opportunity to reconsider its prior action.

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Attached to this report is the draft planned community ordinance reflecting the City Council action from March 16, 2026. A link to the prior report and background information is available online.1

ATTACHMENTS
Attachment A: Draft Planned Community Ordinance
Attachment B: Applicant Representative’s Withdrawal Letter APPROVED BY:

Jonathan Lait, Planning and Development Services Director 1 March 16, 2026, City Council staff report agenda item 13 is available online at:
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86819&dbid=0&repo=PaloAlto Item 10
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0160182_20260407_ay16
1 Ordinance No. ____

Ordinance of the Council of the City of Palo Alto Amending Section

18.08.040 of the Palo Alto Municipal Code (The Zoning Map) to Amend PC Planned Community Zone (PC-5116) to Allow an Addition to an Existing Senior Assisted Living Facility

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 March 21, 2011, the City Council adopted Ordinance No. 5116, creating PC Planned Community 5116.

B. On August 9, 2023, Irwin Partner Architects on Behalf of Wellquest Living submitted an application for an Ordinance Amending Planned Community Zone District 5116 (PC-5116) to allow a 16-Unit addition and 172 square feet of support space to an existing 121-unit Assisted Living and Memory Care Facility (the “Project”) at 4041 and 4075 El Camino Way (the “Subject Property”).

C. Following Staff Review, the Planning and Transportation Commission (“PTC”) reviewed the project on February 28, 2024 and June 12, 2024 and recommended the project to the Architectural Review Board.

D. The Architectural Review Board reviewed the project on July 18, 2024 and October 17, 2024; and recommended approval of the project to the City Council.

E. The PTC reviewed the project on December 11, 2024 and moved to advance the project to Council, recommending approval of only the seven units which do not face Wilkie Way and denial of the nine units and ground floor office space which faces towards the neighborhood. The motion also recommended returning the Transportation Demand Management plan to the PTC for approval, revising the Findings to reflect the PTC’s recommendation, and removing consideration of past public benefits from the PC Ordinance.

F. The City Council reviewed the project on May 5, 2025 and May 27, 2025 and moved to refer the project back to the PTC with direction that the project be reduced to 11 to 13 units, eliminating third floor units facing Wilkie Way.

G. The PTC reviewed the project again on September 24, 2025 and recommended approval of the project with additional revisions, including a reduction in the project scope to seven new units.

H. Approval of the Planned Community Project would constitute a project under the provisions of the California Environmental Quality Act of 1970, together with related state and local implementation guidelines promulgated thereunder (“CEQA”).

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2 I. The City is the Lead Agency pursuant to Public Resources Code section 21067 as it has the principal responsibility to approve and regulate the Planned Community Project.

J. The City, in compliance with CEQA, determined the project to be Categorically Exempt from CEQA per Section 15301 of the CEQA Guidelines (Existing Facilities).

K. The Council is the decision-making body for approval of the Planned Community Project.

L. The site is so situated, and the use or uses proposed for the site are of such characteristics that the application of general districts or combining districts will not provide sufficient flexibility to allow the proposed development. Specifically, the project modifies an existing Planned Community Project (PC 5116) and includes 11 additional units, beyond the 121 units approved in ordinance 5116, and associated modifications to the development plan in accordance with this change.

M. Development of the site under the provisions of the PC planned community district will result in public benefits not otherwise attainable by application of the regulations of general districts or combining districts, as set forth in Section 6 of this ordinance.

N. The use or uses permitted, and the site development regulations applicable within the district are consistent with the Palo Alto Comprehensive plan, and compatible with existing and potential uses on adjoining sites or within the general vicinity.

SECTION 2. Amendment of Zoning Map.

Section 18.08.040 of the Palo Alto Municipal Code, the “Zoning Map,” is hereby amended by changing the zoning of the property formerly zoned as PC Planned Community Zone 5116 from PC Planned Community Zone 5116 to “PC Planned Community Zone _____”.

SECTION 3. Project Description.

The Project as a whole is described in the Development Plan titled “PALO ALTO COMMONS Wellquest Living” and uploaded to the Palo Alto Online Permitting Services Citizen Portal on October 16, 2025, and as modified by the City Council on March 16, 2026. Specifically, only units one through four and nine through eleven are approved; the other proposed new units depicted on the plans are not approved. The Development Plan and approved supplemental materials and conditions included as part of Ordinance 5116 and Ordinance 3775 are incorporated into this ordinance by reference. With respect to the Subject Property, the Project comprises the uses included in this Ordinance, depicted on the Development Plans as modified by the City Council, incorporated by reference, including the following components:
(a) Modifications to an existing 121-unit assisted living and memory care facility, approved as part of PC Planned Community 5116. The additions would include construction of seven additional assisted living units (approximately 3,958 square feet).

SECTION 4. Land Uses.
(a) The following land uses shall be permitted:

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Planned Community
Ordinance

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0160182_20260407_ay16
3 1. Senior Housing;

2. Eating and Drinking Services for use by residents, employees, and their guests;

3. Personal Services for use by residents, employees, and their guests;

4. Retail Services for use by residents, employees, and their guests;

5. Recreational Facilities for use by residents, employees, and their guests;

6. Administrative Offices for administration of Palo Alto Commons;

7. Medical care for residents as is customarily associated with senior assisted living facilities; and

8. Accessory Uses.

SECTION 5. Site Development Regulations and Development Schedule. (a) Development Standards:

Development standards for the Subject Property shall be those conforming to the Development Plan.
(b) Parking and Loading Requirements:

The Owner shall provide parking and loading as set forth in the Development Plan and Parking Management Plan, entitled “Parking Study & Parking Management Plan for Palo Alto Commons at 4075 El Camino Way in Palo Alto, California,” uploaded to Accela on April 9, 2025. The existing 97 spaces on the property shall be maintained and the Owner shall implement all modifications to the Parking Management Plan required by the Record of Land Use Action for the Project (RLUA No. 2025-XX). (c) Modifications to the Development Plan, Land Uses and Site Development Regulations:

Once the Project has been constructed consistent with the approved Development Plan, any modifications to the exterior design of the Development Plan or any new construction not specifically permitted by the Development Plan or the site development regulations contained in Section 5 (a) – (b) above shall require an amendment to this Planned Community zone. Any use not specifically permitted by this ordinance shall require an amendment to the PC ordinance. (d) Development Schedule:

The Project is required to include a Development Schedule pursuant to PAMC §18.38.100.

The approved Development Schedule is set forth in the Applicant Project Description Letter, and anticipates commencing in April 2025 and concluding in October 2026.

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Planned Community
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4 Construction of the project shall commence within two years of the effective date of this ordinance. Prior to expiration of this timeline, the Owner may seek a one year extension from the Director of Planning and Development Services.

SECTION 6. Public Benefits.
(a) Public Benefits:

Development of the Project Site under the provisions of the PC Planned Community District will result in public benefits not otherwise attainable by application of the regulations of general districts or combining districts.

The public benefit provided by the Project is providing a safe place for Palo Alto residents and other seniors to age and making improvements to the existing facility to expand and improve these services.
(b) Monitoring of Conditions and Public Benefits:

The Applicant shall be responsible for reimbursing the City for all costs incurred in connection with annual compliance inspections and any code enforcement–related activities associated with this approval that occur outside of the annual review process.

Such reimbursement shall be provided either through the placement of a deposit or by payment on a time-and-materials basis, as determined by the Director of Planning and Development Services, in accordance with the Palo Alto Municipal Fee Schedule in effect at the time the costs are incurred.

If conditions or benefits are found deficient by staff, the applicant shall correct such conditions in not more than 90 days from notice by the City. If correction is not made within the prescribed timeframe, the Director of Planning and Development Services will schedule review of the project before the Planning and Transportation Commission and Council to determine appropriate remedies, fines or other actions.

SECTION 7. Environmental Review.

The project would not result in a substantial expansion of the current use and is therefore eligible for a categorical exemption from CEQA under Section 15301 of the CEQA Guidelines (Existing Facilities). //
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Planned Community
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5 SECTION 8. 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

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From: Charlene Kussner
To: Raybould, Claire
Cc: Steve Sandholtz; Stephen Reller; Daniel Bowman
Subject: RE: 4075 el camino way, Withdrawal of Application 23PLN-00202, Amend PC-5116 Date: Monday, March 30, 2026 10:51:17 AM
Attachments: image001.png
image002.png
image003.png
CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links.

Good morning Claire, please have this email be confirmation from the owner of 4075 El Camino Way, Palo Alto Commons, to withdraw the application PLN-00202 to amend PC-5116. The owner is no longer pursuing this entitlement and will not be building any additional units to Palo Alto Commons.

Any conditions approved at City Council hearing dated 3.16.26 no longer apply.

PC-5116 conditions remain in force, and we will continue to adhere to.

Please let me know if this is sufficient, or additional information is required.

Thanks to you and Emily for supporting this project.

Charlene Kussner | V.P. of Development & Asset Management

[email protected]
C: 951.757.2571

Corporate Office: 185 South State Street, Suite 1300, Salt Lake City, UT 84111

CA Office: Wellquest of Menifee Lakes, 29914 Antelope Road, Menifee CA 92586

“All that I have seen teaches me to trust the Creator for all I have not seen.” Ralph Waldo Emerson

THIS MESSAGE CONTAINS CONFIDENTIAL INFORMATION AND IS INTENDED ONLY FOR THE INDIVIDUAL(S) NAMED. IF YOU ARE NOT THE NAMED ADDRESSEE(S) YOU SHOULD NOT DISSEMINATE, DISTRIBUTE OR COPY THIS E-MAIL. PLEASE NOTIFY THE SENDER IMMEDIATELY BY E-MAIL IF YOU HAVE RECEIVED THIS E-MAIL BY MISTAKE AND DELETE THIS E-MAIL FROM YOUR SYSTEM. E-MAIL TRANSMISSION CANNOT BE GUARANTEED TO BE SECURE OR ERROR-FREE AS INFORMATION COULD BE INTERCEPTED, CORRUPTED, LOST, DESTROYED, ARRIVE LATE OR INCOMPLETE, OR CONTAIN VIRUSES. THE SENDER THEREFORE DOES NOT ACCEPT LIABILITY FOR ANY ERRORS OR OMISSIONS IN THE CONTENTS OF THIS MESSAGE, WHICH ARISE AS A RESULT OF E-MAIL TRANSMISSION. IF VERIFICATION IS REQUIRED PLEASE REQUEST A HARD-COPY VERSION. COPYRIGHT 2018. ALL RIGHTS RESERVED BY WELLQUEST LIVING,LLC, AND ITS AFFILIATES.

From: Raybould, Claire <[email protected]>
Sent: Monday, March 23, 2026 2:15 PM
To: Charlene Kussner <[email protected]>
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Representative’s
Withdrawal Letter

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Subject: RE: 4075 el camino way

[EXTERNAL EMAIL]
Yes of course. I’ll send an invite for 30 minutes though I don’t think we need that long. Feel free to forward to whomever else on your team you’d like to have attend.

Claire

From: Charlene Kussner <[email protected]>
Sent: Monday, March 23, 2026 1:13 PM
To: Raybould, Claire <[email protected]>
Subject: RE: 4075 el camino way

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

Can we do Wednesday?

Charlene Kussner | V.P. of Development & Asset Management

[email protected]
C: 951.757.2571

Corporate Office: 185 South State Street, Suite 1300, Salt Lake City, UT 84111

CA Office: Wellquest of Menifee Lakes, 29914 Antelope Road, Menifee CA 92586

“All that I have seen teaches me to trust the Creator for all I have not seen.” Ralph Waldo Emerson

From: Raybould, Claire <[email protected]>
Sent: Monday, March 23, 2026 11:50 AM
To: Charlene Kussner <[email protected]>
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Representative’s
Withdrawal Letter

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Subject: 4075 el camino way

[EXTERNAL EMAIL]
Good morning Charlene,

I had a chance to discuss council’s motion with our attorney further and I’d like to connect further with your team regarding options and next steps given the Council meeting last week.

Do you have time for a quick call either at noon or 2pm today? Ot Wednesday at 1pm (I’m free until 1:30)? I think we only need about 10 minutes and then you can take that information to your team and get back to me about how you’d like to move forward.

Claire

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

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

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Representative’s
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: April 20, 2026
Report #:2601-5873
TITLE
Quasi-Judicial: Adoption of a Resolution Documenting the City Council’s Consideration and Decision on an Appeal of the Chief Building Official’s Order to Demolish the Buildings Located at 531 Stanford Avenue.

RECOMMENDATION
Staff recommend that the City Council Adopt a resolution denying the appeal and upholding the Chief Building Official's Order to Demolish the buildings on the subject property based on findings and conditions set forth in Attachment A.

EXECUTIVE SUMMARY
The property located at 531 Stanford Avenue consists of multiple structures that have been determined by the City Chief Building Official to be dangerous and unsafe, constituting public nuisances that pose substantial danger to health, safety, and general welfare. The buildings were originally permitted as R-1 occupancy (hotel) but were being operated as R-2 occupancy (residential apartments) without authorization.

The enforcement history began on March 18, 2024, when City inspectors discovered numerous life-safety violations during an inspection. On March 21, 2024, the City issued a Notice of Violation identifying critical deficiencies including dilapidated fire sprinkler and alarm systems, lack of fire watch services, blocked egress routes, unpermitted construction, structural concerns, hazardous material storage issues, and numerous building code violations.

Following the initial Notice of Violation, the property owner took some remedial actions to respond to the notice of violation. However, the underlying structural, fire safety, and code compliance issues remained unresolved. On April 2, 2024, Chief Building Official issued an Emergency Notice to Repair or Abate, and on April 9, 2024, the building was red tagged as unsafe for occupancy.

After comprehensive assessment and determination that the structures could not be feasibly repaired to meet code requirements, the Chief Building Official issued a Notice and Order to Demolish on October 17, 2025. The Order was based on findings that the structures were fifty Item 11
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percent or more damaged, decayed, or deteriorated, constituted fire hazards, and could not be repaired to eliminate code violations.

On November 13, 2025, Stanford Orion filed a timely appeal raising four primary contentions:
(1) improper service; (2) failure to meet the demolition threshold; (3) unlawful deconstruction requirement; and (4) unreasonable timeline.

This staff report outlines the actions taken by the Chief Building Official, the legal authority under which those actions were exercised and the substantial evidence supporting the determination that the structures meet the criteria for mandatory demolition. Staff recommends that the City Council deny the appeal and uphold the Order to Demolish.

BACKGROUND
On March 18, 2024, City of Palo Alto code enforcement officials conducted an inspection of the property located at 531 Stanford Avenue (Assessor Parcel Numbers 137-01-121, 137-01-002, and 137-01-003). The property consists of multiple buildings that were originally constructed and permitted for R-1 occupancy (hotel use) but were being operated as R-2 occupancy (residential apartments) without proper authorization or permits.

The March 18, 2024, inspection revealed numerous serious violations. These violations are documented in Attachment J (Declaration of George Hoyt, Chief Building Official) and Attachment L (Declaration of Tamara Jasso, Fire Marshal). On March 21, 2024, the City issued the first Notice of Violation (Attachment B) identifying critical deficiencies requiring immediate remedial action, including:
• Dilapidated Fire Sprinkler & Fire Alarm Systems.
• Unconfirmed Records of Testing for Fire Sprinklers & Fire Alarm Systems. • High Combustible Storage throughout all buildings.
• Improper hazmat storage - Created Corrosive Environments and Conditions. • Severely Corroded electrical and Plumbing systems.
• Combustible Storage in certain areas.
• Plastic film on ceilings in some units and in exit stairways. • Unpermitted remodeling of all units (Includes: Enclosing decks, patios, & roof coverings).
• Unpermitted Construction in Electrical (exposed & unsafe wiring)/ Mechanical/Plumbing/Structural (Unsafe) & Non-Structural. (Gazebo structures) • Potential failure of 2nd Floor exit balcony that appears to be shored for stability. • Dilapidated & Missing emergency exit Signage and emergency lighting. • Expired U&O (permitted for R-1, now being used as R-2) • Inoperable elevators (expired Certifications)
• Blocked Egress - Stanford Side and throughout buildings.

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• Non-functioning and missing egress exits and components. • Pool with visible mold underfloor/garage level, unhygienic Following issuance of the first Notice of Violation, the property owner took certain corrective actions to address immediate life-safety concerns. Fire watch services were implemented, tenants were evacuated from upper floors, and some hazardous conditions were remediated.

However, the underlying structural deficiencies, extensive unpermitted construction, and code violations remained unresolved. A second Notice of Violation (Attachment C) was issued on March 28, 2024, to set new compliance deadlines for the outstanding violations.

Subsequent Code Enforcement Action
Based on the extensive violations, Chief Building Official George Hoyt, issued an Emergency Notice to Repair or Abate on April 2, 2024 (Attachment D). On April 3, 2024, the City issued a third Notice of Violation (Attachment E) for outstanding code violations and issued two administrative citations for failure to comply with previous Notices of Violation. On April 9, 2024, the buildings were red tagged as unsafe for occupancy (Attachment D) and the City issued a fourth and final Notice of Violation (Attachment F).

PAMC Section 16.40.050(c) permits mandatory demolition when any one of three independent conditions exists. Meeting a single criterion is sufficient to require demolition. The three criteria are: (1) a dangerous building is fifty percent or more damaged, decayed, or deteriorated from replacement value or structure; (2) a building cannot be repaired so that it will no longer exist in violation of Chapter 16.40; or (3) a dangerous building is a fire hazard existing or erected in violation of applicable codes.

The Chief Building Official determined that the buildings met the mandatory demolition criteria established in PAMC Section 16.40.050, specifically finding that the buildings:
were fifty percent or more damaged, decayed, or deteriorated from replacement value or structure;
could not be repaired to eliminate violations of PAMC Chapter 16.40; and constituted fire hazards existing in violation of applicable codes.

While satisfaction of any single criterion would have been sufficient to require demolition, the finding that all three criteria are met provides additional support for the demolition order.

On October 16, 2025, the Chief Building Official issued a formal Notice and Order to Demolish the buildings in accordance with California Health and Safety Code Section 17980.6 and PAMC Chapter 16.40 (Attachment G).

On November 7, 2025, Stanford Orion, the property manager and owner representative sent a letter to the City outlining some concerns with the Notice and Order to Demolish (Attachment H). On November 13, 2025, Stanford Orion filed a written appeal of the Notice and Order to Item 11
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Demolish (Attachment I). The appeal was submitted through Stanford Orion’s attorneys, Patterson & O'Neill, PC, and raises four principal arguments: (1) improper service; (2) failure to meet demolition threshold; (3) unlawful deconstruction requirement; and (4) unreasonable timeline.

Pursuant to PAMC Section 16.40.080(f), the filing of the appeal has stayed enforcement of the Notice and Order during the pendency of the appeal.

Applicable Code Provisions and Required Findings
PAMC Chapter 16.40 establishes comprehensive regulations governing unsafe buildings. PAMC Section 16.40.050 establishes mandatory standards for repair, vacation, and demolition.

Demolition is mandatory when any one of three independent conditions exists: (1) a dangerous building is fifty percent damaged, decayed or deteriorated; (2) a building cannot be repaired to eliminate code violations; or (3) a dangerous building is a fire hazard in violation of applicable codes.

To render a decision on the appeal, the City Council shall consider the evidence presented and shall make written findings of fact, based upon the evidence, to support its decision pursuant to PAMC Section 16.40.080(e).

ANALYSIS
The Chief Building Official possesses clear authority to order demolition of dangerous buildings under California Health and Safety Code Section 17980.6 and PAMC Chapter 16.40. The buildings at 531 Stanford Avenue satisfy all three criteria, though meeting only one would be legally sufficient to require demolition.

The Declarations of Chief Building Official George Hoyt, Code Enforcement Manager Elisa Vargas and Fire Marshal Tamara Jasso (Attachments J, K and L, respectively) provide detailed expert analysis of the extent of damage, decay, and deterioration, explaining why the buildings exceed the fifty percent threshold and cannot be feasibly repaired and why these conditions constitute a fire hazard in violation of the California Fire Code and PAMC Title 15. These declarations are accompanied by photographic evidence that substantiates the dangerous conditions at the property (Attachment M).

City's Response to Objections Raised in Appeal Letter
Stanford Orion's appeal raises four objections: (1) improper service of the Notice and Order; (2) failure to meet the threshold for mandatory demolition; (3) unlawful requirement for deconstruction; and (4) unreasonable timeline for compliance. Staff have reviewed each objection and provides the following analysis demonstrating that the Chief Building Official's order was properly issued, is supported by substantial evidence, and complies with all applicable legal requirements. The appellant’s letter and appeal statement are provided in Attachments H and I.

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Objection 1: Alleged Improper Notice
The appellant contends that the Notice and Order was not properly served because the City mailed it to the vacant building at 531 Stanford Avenue.

The Notice and Order was properly served in full compliance with PAMC Section 16.40.060. The City mailed the notice to the property address appearing on county tax records, which is expressly authorized by PAMC Section 16.40.060(d). The code specifies that failure to receive notice does not affect validity and service by certified mail is effective on the date of mailing.

Moreover, the appellant timely filed an appeal, demonstrating actual notice.

In addition to the certified mail service required by code, the City also provided courtesy email notification of the Notice and Order to the property owner and their previous legal counsel.

When Patterson & O'Neill subsequently informed the City that they had not received the email, staff offered a courtesy extension of time to respond to the Notice and Order. This accommodation provided the appellant with additional time beyond the code-required deadlines to review the order and prepare their response.

The Declaration of Code Enforcement Manager Elisa Vargas (Attachment K) supports the City’s position that the notice was issued in accordance with municipal regulations.

Objection 2: Challenge to Determination of Dangerous Conditions The appellant contends that violations do not establish that the building is fifty percent damaged, decayed or deteriorated from replacement value.

The appellant misunderstands the standards. PAMC Section 16.40.050(c) establishes three independent grounds for mandatory demolition, but only one standard must be satisfied to require demolition. The buildings meet all three criteria: (1) fifty percent or more damage based on comprehensive assessment of structural deficiencies, failed systems, and code violations; (2) cannot be repaired so that it will no longer exist in violation of Chapter 16.40; or (3) constitute fire hazards.

The declaration of the Chief Building Official (Attachment J) supports mandatory demolition of the buildings at 531 Stanford Avenue under the first criterion.

Based on a March 2024 inspection, ongoing monitoring, and professional expertise, the Chief Building Official determined that rehabilitation costs exceed fifty percent of replacement value.

This conclusion rests on the cumulative impact of failed and non-functional fire protection systems, systemically corroded electrical and plumbing infrastructure, structural failure requiring emergency shoring, extensive unpermitted construction whose hidden conditions cannot be assessed without demolition, and eighteen months of post-vacancy deterioration that worsened all pre-existing deficiencies. Taken together, the cost of full system replacement, structural reconstruction, unpermitted work remediation, and hazardous materials abatement exceeds the fifty percent threshold, satisfying the first demolition criterion.

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The determination that the buildings cannot be repaired so that it will no longer exist in violation of PAMC Chapter 16.40 is supported by the scope and interconnected nature of the violations. Installing new fire protection systems would require demolition throughout the buildings to access concealed spaces for piping and wiring. Reconstructing the structurally failing exit balcony affects the building's egress system and fire-rated assemblies. Replacing corroded electrical and plumbing systems necessitates opening walls, ceilings, and floors throughout multiple buildings. Remediating the extensive unpermitted construction requires demolition to verify structural adequacy and code compliance. Providing code-compliant egress for the unauthorized R-2 occupancy requires reconfiguring building layouts. The scope of work necessary to eliminate all code violations constitutes reconstruction of the buildings rather than repair. The Declarations of Chief Building Official George Hoyt (Attachment J) and Fire Marshal Tami Jasso (Attachment L) explain why repair is not feasible, supported by photographic evidence (Attachment M).

Regarding the third criteria, the buildings constitute fire hazards through multiple code violations that remain unabated, including: dilapidated fire sprinkler and fire alarm systems ; high combustible storage creating excessive fire loads; improper hazardous materials storage; severely corroded and exposed electrical wiring creating ignition sources; blocked egress preventing safe evacuation; non-functioning fire-rated doors and assemblies compromising fire separation; and missing or dilapidated emergency exit signage and lighting preventing safe egress in emergencies. These fire hazards present imminent life-safety concerns and are detailed in the declarations of Chief Building Official George Hoyt (Attachment J) and Fire Marshal Tamara Jasso (Attachment L). The Declaration of Fire Marshal Tamara Jasso (Attachment L) provides expert fire protection engineering analysis of these hazards, supported by photographic evidence and inspection documentation showing the specific violations (Attachment M).

Objection 3: Request for Deconstruction Instead of Demolition The appellant argues that PAMC Section 5.24.080 exempts dangerous structures from deconstruction requirements.

Staff acknowledge the appellant is correct regarding the exemption. The property owner may choose standard demolition methods or voluntarily elect deconstruction but is not required to use deconstruction. Staff recommend that City Council’s findings reflect that deconstruction requirements are voluntary.

This does not provide grounds to reverse the demolition order. The exemption relates to methods of demolition, not the requirement to remove the structures.

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Objection 4: Claims Regarding Timing and Other Issues
The appellant contends that the May 18, 2026 compliance deadline is unreasonable for three stated reasons: (1) the deadline requires removal during the wet season which can cause delays, increase costs, and create dangerous conditions; (2) essential public health and safety equipment is located on the building with no plan to address this equipment; and (3) the City has delayed approval of a post-demolition plan and the vacant property will continue to be a magnet for nuisance activities.

Inclement Weather Concerns
As an initial matter, the filing of the appeal on November 13, 2025, has stayed enforcement of the Notice and Order pursuant to PAMC § 16.40.080(f). The compliance deadlines are not currently in effect and will remain stayed until the City Council issues its decision.

If the City Council upholds the demolition order, new compliance deadlines will be established based on the date of the Council's decision. As noted in attached resolution (Attachment A), staff's recommendation includes a six-month timeframe from the Council's decision for complete removal of all structures. Six months is a reasonable timeframe based on standard industry practice for low-rise demolition projects, and includes permitting and regulatory approvals, hazardous material abatement, conventional excavator-based structural demolition, below-grade structure removal, debris hauling, and final site restoration.

The appellant's concern about demolition during wet season does not justify delaying the demolition requirement. The six-month timeframe provides flexibility for the property owner to schedule demolition work during favorable weather conditions within the compliance period.

Public Health and Safety Equipment
The appellant references "essential public health and safety equipment" located on the building, referring to wireless telecommunications equipment on the roof.

This claim does not provide grounds to reverse or delay the demolition order.

The appellant has not provided documentation establishing that the rooftop equipment is "essential" to public health and safety, provides unique coverage not available from other facilities, or that its removal would create a public safety gap. City staff requested such documentation prior to the appeal being filed, but it was not provided.

City staff consulted with emergency response personnel regarding wireless coverage in the area. The feedback did not identify any concerns that could not be mitigated through existing infrastructure or services. Removal of commercial wireless equipment from this building is not anticipated to compromise emergency communications.

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removal. The appellant was asked to provide lease documentation but did not do so. The responsibility to maintain wireless coverage rests with the carriers, not with the property owner or City. Wireless carriers can seek alternative locations for equipment including other rooftop sites, tower facilities, and small cell installations. If equipment needs relocation, carriers can pursue permit applications for alternative sites through normal processes.

Housing Applications and Processing Concerns
The appellant contends that the City has delayed approval of development plans. This contention is not relevant to the validity of the City’s demolition order, which is based on the dangerous condition of the existing structures.

The appellant has expressed an interest in demolishing the buildings when a future housing development is ready to be constructed. Staff recommends against linking these two processes.

As explained above, these buildings constitute a public nuisance and present significant ongoing public safety hazards that cannot wait for uncertain future development approvals. The structures have been red tagged as unsafe since April 2024. They present risks of partial structural collapse (evidenced by the shored exit balcony), fire hazard (due to failed fire protection systems and code violations), potential for unauthorized occupancy in unsafe conditions, and environmental health hazards from mold and vermin. Each day these dangerous structures remain standing increases the cumulative risk to neighboring properties, the surrounding community, and any persons who might access the site. The City cannot subordinate its fundamental public safety obligations to speculative future development timelines.

Moreover, any future development approved for the site will necessarily require demolition of the existing unsafe buildings, the same outcome mandated by the current order. Delaying demolition to await development entitlements would simply prolong the period during which dangerous structures threaten public safety, without changing the ultimate need for their removal. The property owner can continue to pursue development applications while complying with the demolition order; these are not mutually exclusive processes. While the property owner is seeking efficiencies with respect to site preparation activities such as grading, this does not justify delay in abating the present public health and safety concerns.

Findings and Conditions
The attached resolution contains the detailed findings and conditions required for the City Council's decision on the appeal. The resolution includes eight findings supporting the denial of the appeal and upholding the demolition order: (1) the buildings constitute dangerous buildings under PAMC §§ 16.40.010 and 16.40.020; (2) the buildings meet all three independent mandatory demolition criteria under PAMC § 16.40.050(c) – though only one is required; (3) the Notice and Order was properly served and the Chief Building Official acted within his authority; (4) the determination is supported by substantial evidence in the administrative record; (5) the Item 11
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six-month timeline and conditions are reasonable and necessary; (6) the buildings qualify for exemption from mandatory deconstruction requirements under PAMC § 5.24.080(a)(3); (7) the appeal arguments do not provide sufficient grounds to reverse the Notice and Order to Demolish; and (8) complete demolition serves the public interest in protecting health, safety, and general welfare. The resolution also establishes five conditions of approval governing demolition timeline, site remediation, permit requirements, perimeter fencing, and ongoing site maintenance. If the City Council upholds the demolition order, staff recommend adoption of the attached resolution upholding the demolition order.

FISCAL/RESOURCE IMPACT
The recommendation does not result in significant fiscal or budgetary impacts to the City. Staff time is absorbed within existing departmental budgets.

STAKEHOLDER ENGAGEMENT
Pursuant to PAMC § 16.40.080(b), the Planning and Development Services Department provided written notice of the time and place of the City Council hearing to the appellant at least seven days prior to the hearing date. Notice was sent on April 9, 2026, by certified mail to the appellant at the address shown on the appeal.

Additionally, city staff have maintained frequent communication with the property owner representatives and legal counsel throughout the code enforcement process beginning March 21, 2024.

ENVIRONMENTAL REVIEW
The action is exempt from CEQA under two independent exemptions: (1) Emergency Projects Exemption (CEQA Guidelines Section 15269) - demolition is necessary to address imminent public health and safety threats; and (2) Common Sense Exemption (CEQA Guidelines Section 15061(b)(3)) - no possibility of significant environmental effect.

ATTACHMENTS
A. Draft Resolution Upholding Chief Building Official Notice to Demolish B. First Notice of Violation (March 21, 2024)
C. Second Notice of Violation (March 28, 2024)
D. Emergency Notice to Repair or Abate (April 2, 2024)
E. Third Notice of Violation (April 3, 2024)
F. Fourth Notice of Violation (April 9, 2024)
G. Notice and Order to Demolish (October 16, 2025)
H. Letter from Property Owner Representative (November 7, 2025) I. Appeal of Notice to Demolish (November 13, 2025)
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J. Declaration of George Hoyt, Chief Building Official
K. Declaration of Elisa Vargas, Code Enforcement Manager L. Declaration of Tamara Jasso, Fire Marshal
M. Photographic Evidence of Code Violations at 531 Stanford Avenue APPROVED BY:

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RESOLUTION NO. ______

RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO FOR
531 STANFORD AVENUE: APPEAL OF CHIEF BUILDING OFFICIAL ORDER TO DEMOLISH (24PCE- 00203)

On April 20, 2026, the City Council of the City of Palo Alto denied the appeal and upheld the Chief Building Official Order to Demolish the structures located at 531 Stanford Avenue, making the following findings, determinations and declarations:

SECTION 1. Background. The City Council of the City of Palo Alto ("City Council") finds, determines, and declares as follows:

A. The subject property is located at 531 Stanford Avenue, Palo Alto, CA 94306; Assessor Parcel Numbers: 137-01-121, 137-01-002, 137-01-003; Property Owner: Aurora Rising Inc/Atlas Star LLC; Case Number: 24PCE-00203.

B. Following a comprehensive inspection conducted on March 18, 2024, the City issued a Notice of Violation on March 21, 2024, identifying numerous serious violations affecting life safety, structural integrity, fire protection systems, and building code compliance.

The Notice identified critical deficiencies requiring immediate remedial action including dilapidated fire sprinkler and alarm systems; lack of fire watch services; high combustible storage; improper hazardous material storage; severely corroded electrical and plumbing systems; unpermitted remodeling and construction; potential structural failure of second floor exit balcony requiring shoring; expired Use and Occupancy permit with unauthorized R-2 use; inoperable elevators; blocked egress; non-functioning fire-rated exits; exposed mold growth; and vermin infestation.

C. Based on the extensive violations and determination that the buildings could not be feasibly repaired to meet code requirements, Chief Building Official George Hoyt issued an Emergency Notice to Repair or Abate on April 2, 2024, pursuant to authority under PAMC Chapter 16.40.

D. On April 9, 2024 the buildings were red-tagged as unsafe for occupancy pursuant to the Chief Building Official authority under PAMC Chapter 16.40. The buildings have remained red-tagged continuously since that date.

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E. On October 17, 2025, following comprehensive evaluation, Chief Building Official George Hoyt issued a formal Notice and Order to Demolish in accordance with California Health and Safety Code § 17980.6 and PAMC Chapter 16.40. The Notice documented that the property contains dangerous and unsafe conditions constituting public nuisances posing substantial danger to health, safety, and general welfare. The Notice identified 18 specific categories of code violations and ordered demolition permit application by November 17, 2025 and completion by May 18, 2026. The Notice was delivered via posting, first-class mail, and certified mail (tracking number 9589 0710 5270 2033 2917 42) to Aurora Rising Inc/Atlas Star at 531 Stanford Avenue, the address on Santa Clara County property tax records.

F. On November 7, 2025, the property owner representative submitted a letter to the City expressing concerns regarding the Notice and Order, including timeline extension requests. City staff met with the representative to discuss issues raised.

G. On November 13, 2025, Stanford Orion, the property manager and owner representative, filed a timely written appeal pursuant to PAMC § 16.40.080. The appeal, submitted through Patterson & O'Neill, PC, raised four objections: (1) improper service; (2) failure to meet demolition threshold; (3) unlawful deconstruction requirement; and (4) unreasonable timeline. Pursuant to PAMC § 16.40.080(f), the appeal stayed enforcement.

H. The administrative record includes expert declarations from City officials:

Declaration of George E. Hoyt, Chief Building Official; Declaration of Elisa Vargas, Code Enforcement Supervisor; and Declaration of Tamara Jasso, Fire Marshal. These declarations are supported by photographic evidence and documentary exhibits.

I. On April 20, 2026, the City Council held a duly noticed public hearing. Notice was provided to the appellant and property owner by certified mail at least seven days prior in accordance with PAMC § 16.40.080(b). The Council considered the administrative record, staff reports, expert declarations, documentary and photographic evidence, and testimony.

SECTION 2. Environmental Review. This action is exempt from the California Environmental Quality Act (CEQA) under two independent exemptions: (1) Emergency Projects Exemption (CEQA Guidelines § 15269(c)) as demolition is necessary to address imminent public health and safety threats posed by dangerous structures; and (2) Common Sense Exemption (CEQA Guidelines § 15061(b)(3)) as there is no possibility that demolition of existing dangerous structures will have a significant environmental effect.

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SECTION 3. Findings

1. The buildings at 531 Stanford Avenue constitute dangerous buildings as defined in PAMC § 16.40.010 and substandard residential buildings as defined in PAMC § 16.40.020.

2. Palo Alto Municipal Code section 16.40.050(c) requires mandatory demolition when any one of three independent conditions exists. Meeting any single criterion is sufficient.

The buildings meet all three criteria: (a) Fifty percent or more damaged, decayed, or deteriorated based on comprehensive assessment of failed fire protection systems, severely corroded electrical and plumbing systems, structural deterioration requiring emergency shoring, extensive unpermitted construction, and deteriorated building systems; (b) Cannot be repaired so that they will no longer exist in violation of PAMC Chapter 16.40 because the scope of necessary work constitutes reconstruction rather than repair; (c) Fire hazards existing or erected in violation of the terms of this chapter, ordinances of this City, and statutes of the State of California.

3. The Notice and Order was properly served by certified mail to the address on Santa Clara County property tax records as authorized by PAMC § 16.40.060(d). Service is effective on mailing regardless of receipt. The timely appeal demonstrates actual notice. The Chief Building Official acted within authority under PAMC § 16.40.060(a).

4. The determination upholding the order to demolish the subject buildings is supported by substantial evidence including: March 18, 2024 comprehensive inspection; October 16, 2025 Notice and Order documenting 18 specific code violations; ongoing red-tag status since April 2024; City records showing lack of required permits; expert declarations from the Chief Building Official, Code Enforcement Supervisor, and Fire Marshal; and supporting photographic and documentary exhibits.

5. The six-month timeframe to demolish the building and associated improvements and to prepare the site in accordance with the applicable conditions is reasonable and sufficient to allow for the procurement of required permits, completion of hazardous material abatement, performance of structural demolition and debris hauling, and final site restoration, while addressing urgent safety concerns. Complete removal of all structures, including subterranean improvements, is necessary to fully abate hazardous conditions. Site grading and installation of perimeter fencing are required to protect public health and safety.

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6. The buildings qualify for exemption from mandatory deconstruction under PAMC § 5.24.080(a) as dangerous buildings required to be abated by demolition. The property owner may use standard demolition methods or voluntarily elect deconstruction.

7. The appeal arguments do not provide sufficient grounds to reverse the order. The service of proper notice argument is contradicted by code provisions and the timely appeal. The dangerous conditions challenge misunderstands the three independent criteria. The deconstruction argument does not undermine the demolition requirement. The timeline concerns do not justify postponement given the nearly two-year enforcement history.

8. Complete demolition is necessary to protect health, safety, and general welfare.

The buildings present ongoing threats including partial structural collapse risk, unabated fire hazards, unauthorized occupancy risk, and environmental hazards. The City has a fundamental obligation under PAMC Chapter 16.40 and California Health and Safety Code § 17980.6 to protect public safety. A vacant, graded, and secured lot presents substantially lower risks than deteriorating dangerous structures.

SECTION 4. Appeal Denied and Demolition Order Upheld. Based on the foregoing findings and substantial evidence, the City Council denies the appeal and upholds the Chief Building Official Order to Demolish the structures at 531 Stanford Avenue, effective March 2, 2026 and subject to the conditions set forth in Section 5.

SECTION 5. Conditions of Approval.

1. All structures, including above-ground buildings and below-ground improvements such as the subterranean garage and swimming pool, shall be completely removed and the site secured no later than October 20, 2026, or within six (6) months of the City Council final decision, whichever is later. The property owner must obtain all required approvals and final inspections from the City Planning and Development Services Department prior to this deadline.

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2. All subterranean excavations resulting from removal of below-ground structures shall be filled with approved materials and graded level with the surrounding site to ensure proper drainage and site stability.

3. A complete application for demolition permit shall be filed with the City Planning and Development Services Department within thirty (30) days of the City Council final action.

Pursuant to PAMC § 5.24.080(a)(3), no deconstruction shall be required; the property owner may use standard demolition methods.

4. A six-foot tall wood or chain-link fence with integrated screening shall be installed and maintained around the perimeter of the property to secure it from unauthorized access. Upon written notice from the City, any deterioration, damage, tears, fraying, graffiti, or similar conditions shall be replaced or corrected within ten (10) days of written notice.

5. The property owner shall maintain the site in a clean, safe, and secure condition at all times. The site shall be kept free of trash, debris, overgrown vegetation, standing water, and similar property maintenance issues. Regular maintenance including mowing, weeding, and litter removal shall be performed as necessary. The property owner shall respond to any written notice from the City regarding site maintenance issues within ten (10) days of notice.

SECTION 6. Effective Date and Finality. This decision is final upon adoption by the City Council on April 20, 2026. Pursuant to PAMC § 16.40.080(e), the City Council has affirmed the Chief Building Official order with the conditions specified herein. This decision is final and not subject to further administrative appeal.

PASSED:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

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CERTIFICATION
I hereby certify that the foregoing is a true and correct copy of the Resolution adopted by the City Council of the City of Palo Alto at its meeting held on April 20, 2026.

Dated: ________________________

_______________________________________
Mahealani Ah Yun, City Clerk
City of Palo Alto

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You are required to provide minimal living standards to all occupants of the dwelling unit(s).

City records show that the buildings located at 531 Stanford Avenue (also known as 520 Oxford Avenue) currently lack proper permits and authorizations for legal use and occupancy. There are no permits on file for 520 Oxford Avenue for an address assignment request. There are also no permits on file that approve or certify residential usage, building alterations or remodeling, fire alarm or sprinkler systems, hazardous materials handling, or pool operation. Due to this substantial lack of required permits and inspections, the ,buildings are presently classified as unsafe structures with multiple substandard conditions.

Some of the identified deficiencies include, but are not limited to the following:
• Dilapidated & Missing emergency Exit Signage and Emergency lighting. (PAMC § 16.40.010 (a)) • Dilapidated Fire Sprinkler & Fire Alarm Systems. (PAMC § 15.04.010, 16.40.010 (p); CFC§ 311.2.2) • Unconfirmed records of testing for Fire Sprinklers & Fire Alarm Systems. {PAMC § 16.40.010 (p); CFC § 107.3) • High combustible storage throughout all buildings. (PAMC § 16.40.010 (p)) • Improper Hazmat storage which has created corrosive environments and conditions. (PAMC § 16.40.010 (p)) • Severely corroded electrical and plumbing systems. (PAMC § 16.40.010 {p)) • Plastic film (unapproved building material) on ceilings in some units and in exit stairways. (PAMC § 16.40.010 (p); CFC§ 311.3)
• Unpermitted construction (shoring): Structural, potential failure of 2nd Floor exit balcony that appears to be shored for stability. (PAMC § 15.04.010; CBC§ 105.1)
• Unpermitted remodeling of all hotel rooms and throughout buildings (Includes: Enclosing decks, patios, & roof coverings). (PAMC § 15.04.010; CRC § R113.1}
• Unpermitted construction; Electrical (exposed and unsafe wiring throughout all buildings), Mechanical (Water Heaters, boilers and holding tanks), Plumbing (New fixtures and repairs throughout buildings) and Mechanical ventilation and exhaust. (PAMC § 16.40.010 (p))
• Unpermitted construction; Non-Structural. {Gazebo structures). (PAMC § 15.04.010; CBC§ 105.1) • Unauthorized Use and Occupancy (originally permitted for R-1, now being used as R-2). (PAMC § 16.40.020 {I)) • Inoperable Elevators (expired certifications) CCR Title 8§3001. Permit to Operate. (c) • Blocked Egress - Stanford Avenue side and throughout buildings. (PAMC §§ 16.40.010 (a), 16.40.020 (j)) • Non-functioning and missing Egress Exits (fire-rated doors and door frames). (PAMC § 16.40.010 (a), 16.40.020 (j))
• Exposed mold growth in basement. (PAMC §§ 16.40.010 (n), 16.40.020 (i), 16.40.020 (m))

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Palo Alto City CouncilApril 20, 2026

Palo Alto City Council
April 20, 2026