Agenda packet — Portola Valley City Council, November 12, 2025 (part 1 of 2)

TOWN OF PORTOLA VALLEY
Regular Meeting of the Town Council
Wednesday, November 12, 2025
7:00 PM
MAYOR: Judith Hasko
VICE MAYOR: Craig Taylor
COUNCILMEMBERS: Rebecca Flynn, Mary Hufty, Helen Wolter

A G E N D A
HISTORIC SCHOOLHOUSE - 765 Portola Road, Portola Valley, CA 94028 Remote Public Comments: Meeting participants are encouraged to submit public comments in writing in advance of the meeting. Please submit your public comments by using the online form, by 1:00 PM on the day of the meeting. Time permitting, your correspondence will be uploaded to the website. All received questions will be forwarded to the Portola Valley Town Council for consideration during the meeting and included in the public record. Members of the public may also provide comments in person at the meeting. The agenda and staff report will be posted on the Town’s website by approximately 5:00 PM the Friday prior to the meeting. Additionally, technology permitting, the public body will take questions using the Raise Hand button for those who attend the meeting online or by phone. The Mayor will call on people to speak by the phone number calling in. Remote participation is provided as a supplemental way to provide public comment, but this method does not always work. The public is encouraged to attend in person to ensure full participation.

In-Person Public Comments: Please fill out and submit a Public Comment card to the Town Clerk or Mayor prior to speaking. The Mayor will call your name at the appropriate time. Each speaker's time is limited to three (3) minutes. The Mayor reserves the right to limit speaker's time, depending upon the number of speakers or other circumstances.

Assistance for People with Disabilities: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Town Clerk at (650) 851-1700 or by email at [email protected]. Notification 48 hours prior to the meeting will enable the Town to make reasonable arrangements to ensure accessibility to this meeting.

VIRTUAL PARTICIPATION VIA ZOOM
To access the meeting by computer:
https://us06web.zoom.us/j/85770308816?pwd=7p3ae2Itp1id4Mb09KcvQ6bMQZIFp9.1 Webinar ID: 857 7030 8816
Passcode: 048294
To access the meeting by phone:
1-669-900-6833 or 1-888-788-0099 (toll-free)
Mute/Unmute - Press *6 / Raise Hand ? Press *9
1 1. CALL TO ORDER / ROLL CALL

2. A.B. 2449 CONSIDERATIONS: Announcements/Consideration and approval of request to attend remotely by Town Council, pursuant to AB 2449 (just cause and emergency circumstances).

3. REPORT OUT FROM CLOSED SESSION

4. PRESENTATIONS / PROCLAMATIONS
a. Mid-Peninsula Open Space District Annual Presentation

5. TOWN MANAGER REPORT

6. ORAL COMMUNICATIONS

7. CONSENT AGENDA
a. Approve Special Meeting Minutes of October 22, 2025
b. Approve Regular Meeting Minutes of October 22, 2025
c. Warrant List for November 12, 2025
d. Consider Adoption of a Resolution Appointing a Director and an Alternate Director to Serve on the Board of Directors of Pooled Liability Assurance Network Joint Exercise of Powers Agreement (PLAN JPA) on Behalf of the Town of Portola Valley

8. PUBLIC HEARING
a. Hold Public Hearing and Consider Introduction of an Ordinance to Adopt the 2025 California Building Standards Code and Local Amendments

9. REGULAR AGENDA
a. Receive Presentation on the Community Survey from Godbe Research b. Update by Town Council Safety Element Subcommittee
c. Consider Authorizing the Mayor to Execute a Professional Consultant Services Agreement for the Portola Valley Safety Element Update with Urban Planning Partners, Inc.

10. COUNCIL SUBCOMMITTEE, LIAISON COMMITTEE, AND REGIONAL AGENCIES REPORTS a. Report of 9/15/2025 SMC Library JPA Governing Board Meeting b. Liaison Report on 10/01/2025 SFO Roundtable Meeting
c. Report of 10/07/2025 Conservation Committee Meeting
There are no written materials, and the Town Council does not take action under this agenda item.

Persons wishing to address the Town Council on any subject may do so now. Please submit a speaker’s slip located at the front of the room to the Town Clerk or Mayor, prior to speaking. Please note the Council is not able to undertake extended discussion or action on items not on the agenda. Each speaker’s time is limited to three (3) minutes.

Oral and written reports arising out of Council subcommittee and liaison appointments to both in-town and regional committees and initiatives. The Town Council does not take action under this agenda item. 2 d. 10/16/2025 C/CAG Governing Board Meeting
e. Report of 10/25/2025 Peninsula Clean Energy Committee Meeting f. Report of 11/03/2025 SMC Library JPA Governing Board Meeting g. 11/06/2025 EPC Meeting Notes

11. ADJOURNMENT
The next Regular Town Council meeting will be held on November 26, 2025 at 7:00 p.m.

Land Acknowledgement:

The Town of Portola Valley acknowledges the colonial history of this land we dwell upon the unceded territory of the Ramaytush (rah-my-toosh) Ohlone, Tamien Nation, and Muwekma (mah-WEK- mah) Ohlone, who endured a human and cultural genocide that included removal from their lands and their sacred relationship to the land. Portola Valley recognizes that we profit from the commodification of land seized from indigenous peoples and now bear the ecological consequences. We seek to understand the impact of these legacies on all beings and to find ways to make repair. 3 TOWN OF PORTOLA VALLEY

STAFF REPORT
TO: Mayor and Members of the Town Council
FROM: Veronica Dao, Town Clerk
DATE: November 12, 2025
RE: Approve Special Meeting Minutes of October 22, 2025

RECOMMENDATION
Staff recommends Town Council review and approve the October 22, 2025 meeting minutes.

ATTACHMENTS

1. 10-22-2025 Council Special Minutes CS.docx
4 Volume 47
October 22, 2025

Page 1 ends

PORTOLA VALLEY TOWN COUNCIL SPECIAL MEETING MINUTES – OCTOBER 22, 2025

1. CALL TO ORDER / ROLL CALL
Mayor Hasko called the meeting to order at 5:32 p.m. Roll was taken by the Clerk.

Present: Councilmembers Rebecca Flynn, Mary Hufty, Helen Wolter, Mayor Judith Hasko

Absent: Vice Mayor Craig Taylor
Others: Town Manager Darcy Smith, Town Attorney Catherine Engberg, Town Clerk Veronica Dao

2. ORAL COMMUNICATIONS
Mayor Hasko invited public comments on the agenda items.

Public Comment
 Nona Chiariello

3. CLOSED SESSION
Councilmember Wolter announced she will be recusing herself from item 3b.

The Council went into Closed Session at 5:39 p.m. to discuss the following:
a. CONFERENCE WITH REAL PROPERTY NEOGIATORS (Government Code Section 54956.8)
Property: San Mateo County APN 080-010-020 –located approximately one-quarter mile north of the Thomas Fogarty Winery entrance at 19501 Skyline Boulevard, Portola Valley
Town Negotiator: Darcy Smith, Town Manager
Negotiating Parties: Thomas Fogarty
Under negotiation: Price and terms of payment re: potential acquisition by the Town b. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation pursuant to Government Code Section 54956.9A(d)(4): (one potential case)

4. RECONVENE / ADJOURNMENT
The Council reconvened from Closed Session and adjourned the meeting at approximately 7:02 p.m.
5 ________________________ ______________________
Judith Hasko, Mayor Veronica Dao, Town Clerk
Submitted for approval to the Town Council at its November 12, 2025 regular meeting. 6 TOWN OF PORTOLA VALLEY

STAFF REPORT
TO: Mayor and Members of the Town Council
FROM: Veronica Dao, Town Clerk
DATE: November 12, 2025
RE: Approve Regular Meeting Minutes of October 22, 2025

RECOMMENDATION
Staff recommends Town Council review and approve the October 22, 2025 meeting minutes.

ATTACHMENTS

1. 10-22-2025 Council Regular Meeting Minutes.docx
7 Volume 47
October 22, 2025

Page 1 ends

PORTOLA VALLEY TOWN COUNCIL REGULAR MEETING MINUTES – OCTOBER 22, 2025

1. CALL TO ORDER / ROLL CALL
Mayor Hasko called the meeting to order at 7:05 p.m. Roll call was taken by the Clerk.

Present: Councilmembers Helen Wolter, Rebecca Flynn, Mary Hufty, Mayor Judith Hasko

Absent: Vice Mayor Craig Taylor
Others: Town Manager Darcy Smith, Assistant Town Manager Corie Stocker-Pedalino, Town Attorney Catherine Engberg, Finance Director Anthony McFarlane, Interim Planning and Building Director Steve McHarris, Town Clerk Veronica Dao

2. A.B. 2449 CONSIDERATIONS: Announcements/Consideration and approval of request to attend remotely by Town Council, pursuant to AB 2449 (just cause and emergency circumstances) --None.

3. REPORT OUT FROM CLOSED SESSION
Town Attorney Engberg reported that Council met in Closed Session earlier regarding two items, property negotiations for 19501 Skyline Boulevard and anticipated litigation for one potential case. There was nothing to report out.

4. PRESENTATIONS / PROCLAMATIONS
a. Proclamation for National Native American Heritage Month Mayor Hasko made some remarks and encouraged residents to learn more by participating in local activities.
b. Proclamation for Domestic Violence Awareness Month
Mayor Hasko presented the proclamation to Duffy Magilligan, Chair of the Board of Directors for CORA.

5. TOWN MANAGER REPORT
Town Manager Smith updated the Council on the following:
 Statewide election November 4
 Town Trivia Night November 8
 Introduced new Interim Planning and Building Director, Steve McHarris 8 Volume 47
October 22, 2025

Page 2 ends

 New Town Manager weekly blog to provide regular updates on town business to residents

6. ORAL COMMUNICATIONS
Mayor Hasko invited public comment.

Public Comment
 Rita Comes

7. CONSENT AGENDA
Mayor Hasko invited public comment. None were received.

Motion and second (Hufty, Flynn) to approve Consent Agenda items 7a - d. The motion carried 4-0-1 by voice vote, with Vice Mayor Taylor absent. a. Approve Regular Meeting Minutes of October 8, 2025
b. Approve Warrant List of October 22, 2025
c. Consider Sarah Gilbert to Conservation Committee
d. Appoint Simon Klemperer to Geologic Safety Committee

8. REGULAR AGENDA
a. Consider Approval of a Professional Consultant Services Agreement for On-Call Planning, Building, Code Enforcement, and Engineering Services with CSG, Inc. and a Professional Consultant Services Agreement for On-Call Planning, Building, and Engineering Services with Interwest, Inc.

Interim Planning and Building Director McHarris presented the item.

Mayor Hasko invited public comment. None were received.

Council asked questions and discussed the item.

Motion and second (Flynn, Hufty) to approve both service agreements. The motion carried 4-0-1 by voice vote, with Vice Mayor Taylor absent.

9. STUDY SESSION
a. Receive Information and Provide Direction to Staff and the Parks and Recreation 9 Volume 47
October 22, 2025

Page 3 ends

Committee on the Replacement of Existing Restrooms and Snack Shack at Ford Field (Dorothy Ford Park & Open Space) with a Permanent Building Containing Flushable Restrooms and Snack Service Area
Town Manager Smith introduced the item. Karen Askey of the Parks and Recreation Committee presented the item.

Mayor Hasko invited public comment.

Public Comment
 Sloane
 Kristi Corley
 Betsy Morgenthaler
 David Cardinal
 Danna Breen
 Judy Murphy
 Randy Gabrielson
Council discussed the item and provided feedback.

No action was taken.

10. COUNCIL SUBCOMMITTEE, LIAISON COMMITTEE, AND REGIONAL AGENCIES

REPORTS
Councilmembers reported on several local and regional meetings they attended recently.

Mayor Hasko invited public comments. None were received.

11. ADJOURNMENT
The meeting adjourned at 9:39 p.m.
_________________________ _________________________
Judith Hasko, Mayor Veronica Dao, Town Clerk
Submitted for approval to the Town Council at its November 12, 2025 regular meeting. 10 ______________________________________________________________________________________ TO: Mayor and Members of the Town Council
FROM: Tony McFarlane, Finance Director
DATE: November 12, 2025
RE: Warrant List for November 12, 2025
RECOMMENDATION:

1. Review and accept the following Warrant List for the month of November:
11/12/2025 Warrant List

REPORT SUMMARY
The following table lists warrant activity by date, tracks starting and ending warrant numbers, and total amount of warrants issued.

The following table lists payments by fund.

Date
Ending
Warrant #
Warrant 11/12/2025 5542 5593 52 262,222.02 11/13/2025 10/22/2025 5541 Attached are Warrant Lists for:

Prior Warrant List
Type of Warrant Date
Starting
Warrant #
Ending
Warrant #
Total
Warrants Amount
Warrants
Released
Fund Date Amount
General 11/12/2025 122,030.13
Grants 11/12/2025 7,967.75
Open Space 11/12/2025 1,550.00
Library 11/12/2025 1,110.27
Gas tax 11/12/2025 298.44
Inclusion In-lieu 11/12/2025 74,214.26
WHRMD 11/12/2025 3,895.69
Customer Deposits 11/12/2025 51,155.48
Total $ 262,222.02
Payments by Fund

TOWN OF PORTOLA VALLEY

STAFF REPORT

TOWN OF PORTOLA VALLEY
11

Page 2 ends

Warrant List November 12, 2025
The following table lists the warrants issued as EFT/ACH payments. EFT/ACH payments are recurring payments for contributions related to retirement and deferred compensation, workers’ compensation premiums, and utilities, etc.

The following table lists the warrants that were voided and the reason for the voided transaction.

The following table lists the warrants issued outside of the scheduled warrant list cycle for various reasons, such as processing error, reissuing a voided check, or employee separation.

DISCLOSURE
For additional information on any item disclosed in this report, please contact the Finance department directly at [email protected].

ATTACHMENTS

1. 11/12/2025 Warrant List Certification
Date Warrant # Issued to Fund Dept Purpose Amount
11/12/2025 5549 Missionsqaure Retirement 101 Various Oct 31 Contributions $ 1,182.77 11/12/2025 5555 Navia Benefit Solutions 101 Various Oct 31 Deductions 343.33 11/12/2025 5559 PERS Health 101 Various November Premium 20,271.03 11/12/2025 5526 Verizon Wireless 101 610 Oct Mobile Phone 855.52 11/12/2025 5583 Amazon Capital Services 101 610 October Office Supplies 384.03 Warrants issued as ACH/EFT
Date Warrant # Issued to Fund Dept Reason Amount
Warrants Voided and Reissued
Date Warrant # Issued to Fund Dept Purpose Amount
Warrants Issued Outside of a Scheduled Warrant List
Date Warrant # Issued to Fund Dept Purpose Amount
Disclosure
12 TOWN OF PORTOLA VALLEY
Warrant Disbursement Journal
November 12, 2025
Claims totaling $262,222.02 having been duly examined by me and found to be correct are hereby approved and verified by me as due bills against the Town of Portola Valley.

Date _____________________________ ________________________________ Corie Stocker, Assistant Town Manager
Motion having been duly made and seconded, the above claims are hereby approved and allowed for payment.

Signed and sealed this (Date) _____________________
_______________________________ _________________________________ Anthony McFarlane, Finance Director Mayor
13 apachreg Town of Portola Valley mmagahiz 11/05/2025 13:09 Page 1 Check Register
Check Vendor Vendor Name Check Check BW CheckNumber Number Amount Date TypeChecks for Cash Account: 910-11011-000 5542 115 CITY OF SOUTH SAN FRANCISCO 130.00 11/12/255543 124 COMCAST 232.27 11/12/255544 125 CONNIE STACK 2,020.00 11/12/255545 151 DEL RIO ROOFING 1,000.00 11/12/255546 176 EXCEL LD 22.74 11/12/255547 200 GRANICUS 12,860.49 11/12/255548 213 HILLYARD INC 639.54 11/12/255549 218 MISSIONSQUARE RETIREMENT 1,182.77 11/12/25 EFTPS5550 227 INTERSTATE TRAFFIC CNTRL 298.44 11/12/255551 234 J. W. ENTERPRISES 546.88 11/12/255552 269 KATHY WADDELL 728.00 11/12/255553 290 LOS GATOS ROOFING 3,000.00 11/12/255554 324 MIRANDAS LANDSCAPE 2,106.00 11/12/255555 330 NAVIA BENEFIT SOLUTIONS 343.33 11/12/25 EFTPS5556 330 NAVIA BENEFIT SOLUTIONS 200.00 11/12/255557 334 NOLTE ASSOCIATES INC 47,321.98 11/12/255558 339 OCCUSCREEN LLC 82.50 11/12/255559 364 PERS HEALTH 20,271.03 11/12/25 EFTPS5560 372 PINNACLE BUILDING & DESIGN 1,000.00 11/12/255561 375 PLATINUM FACILITY SERVICES 4,936.68 11/12/255562 376 PORTOLA VALLEY HARDWARE 138.69 11/12/255563 429 SHELLY SWEENEY 2,288.00 11/12/255564 431 SIERRA PACIFIC TURF SUPPLY INC 5,859.33 11/12/255565 445 STANDARD INSURANCE CO. 543.13 11/12/255566 489 VERIZON WIRELESS 855.52 11/12/25 EFTPS5567 502 WILLIAM S REHLICH INC 3,895.69 11/12/255568 504 WOODSIDE & PORTOLA PRIVATE 1,267.50 11/12/255569 507 WOODSIDE PRIORY 1,000.00 11/12/255570 518 GOT GOPHERS? 1,050.00 11/12/255571 545 W H DEMPSEY ENGINEERING LLC 1,550.00 11/12/255572 698 MIA DIGIOVANNI 1,800.00 11/12/255573 712 BAYSIDE EQUIPMENT COMPANY 521.23 11/12/255574 730 URBAN PLANNING PARTNERS INC 4,187.50 11/12/255575 744 PATTY DEWES 2,336.96 11/12/255576 751 VIA HEART PROJECT 470.47 11/12/255577 803 CODA TECHNOLOGY GROUP 685.00 11/12/255578 860 STEPFORD 4,541.50 11/12/255579 1002 IACPV LLC 70,026.76 11/12/255580 1016 SHUTE, MIHALY & WEINBERGER LLP 23,644.59 11/12/255581 1064 HDL COREN & CONE 1,504.34 11/12/255582 1091 BOUCHER LAW, PC 8,730.50 11/12/255583 1152 AMAZON CAPITAL SERVICES, INC 384.03 11/12/25 EFTPS 5584 1186 AT&T CORP DBA ACC BUSINESS 735.08 11/12/255585 1195 LEAF CAPITAL FUNDING, LLC 609.80 11/12/255586 1214 SAN MATEO DAILY JOURNAL 2,016.00 11/12/25 14 apachreg Town of Portola Valley mmagahiz 11/05/2025 13:09 Page 2 Check Register
Check Vendor Vendor Name Check Check BW CheckNumber Number Amount Date Type 5587 1235 ST. FRANCIS ELECTRIC, LLC 7,967.75 11/12/255588 1286 THE LEW EDWARDS GROUP 11,500.00 11/12/255589 1291 EVENT 360 130.00 11/12/255590 1292 WOODLAND SCHOOL 130.00 11/12/255591 1293 SILICON VALLEY BICYCLE COALITI 130.00 11/12/255592 1294 ANDREW CHARLES CANAPARY 1,800.00 11/12/255593 1295 BRYSON ROOFING 1,000.00 11/12/25Check totals: 239,185.34ACH totals:EFTPS totals: 23,036.68Wire transfer totals:Payment Manager totals:GRAND TOTALS 262,222.02Check totals: 239,185.34ACH totals:EFTPS totals: 23,036.68Wire transfer totals:Payment Manager totals:GRAND TOTALS 262,222.02 15 apackfnd2 Town of Portola Valley mmagahiz 11/05/2025 13:10 Page 1 Checks by Fund - 11/12/25 to 11/12/25
Vendor Name Account Invoice Invoice Amount Check Check
Compressed Description Number DateFormatted
Fund 101 Dept Balance SheetEVENT 360 101-21052-000-000000 Deposit Refund - 130.00 5589 11/12/25 Event 360Anti-Litter
MISSIONSQUARE RETIREMENT 101-21036-000-000000 Deferred Comp - Oct 1,182.77 5549 11/12/25 31, 2025
NAVIA BENEFIT SOLUTIONS 101-21033-000-000000 Navia Benefit 343.33 5555 11/12/25 10/31/2025
SILICON VALLEY BICYCLE COALITI 101-21052-000-000000 Deposit Refund - 130.00 5591 11/12/25 Event SVBC
WOODLAND SCHOOL 101-21052-000-000000 Deposit Refund - 130.00 5590 11/12/25 Woodland School FunRun Event
WOODSIDE PRIORY 101-21051-000-000000 Deposit Refund - 1,000.00 5569 11/12/25 Community Hall --------------
Fund 101 Dept Total 2,916.10
Fund 101 Dept 110 Town CouncilCITY OF SOUTH SAN FRANCISCO 101-65012-110-000000 COC Dinner Meeting, 130.00 5542 11/12/25 Judith Hasko, Helen Wolter
--------------
Fund 101 Dept 110 Total 130.00
Fund 101 Dept 115 Town CommitteesPATTY DEWES 101-63208-115-000000 Town Picnic & Zotts 2,336.96 5575 11/12/25 to Tots Fun Run2025 Reimbursement
WOODSIDE & PORTOLA PRIVATE 101-63208-115-000000 PV Town Picnic 585.00 5568 11/12/25 Zotts to TotsTraffic Cntrl CleanUp
--------------
Fund 101 Dept 115 Total 2,921.96
Fund 101 Dept 120 Town ManagerPERS HEALTH 101-55021-120-000000 November Health 8,749.51 5559 11/12/25STANDARD INSURANCE CO. 101-55031-120-000000 LTD/Life Premium 543.13 5565 11/12/25 --------------
Fund 101 Dept 120 Total 9,292.64
16 apackfnd2 Town of Portola Valley mmagahiz 11/05/2025 13:10 Page 2 Checks by Fund - 11/12/25 to 11/12/25
Vendor Name Account Invoice Invoice Amount Check Check
Compressed Description Number DateFormatted
Fund 101 Dept 125 Town AttorneySHUTE, MIHALY & WEINBERGER LLP 101-62032-125-000000 Sept Legal Service 23,605.59 5580 11/12/25 --------------
Fund 101 Dept 125 Total 23,605.59
Fund 101 Dept 130 Town ClerkPERS HEALTH 101-55021-130-000000 November Health 1,113.79 5559 11/12/25 --------------
Fund 101 Dept 130 Total 1,113.79
Fund 101 Dept 140 FinanceHDL COREN & CONE 101-62099-140-000000 Contract Svcs Prop 1,504.34 5581 11/12/25 Tax - Oct-Dec 25
PERS HEALTH 101-55021-140-000000 November Health 6,043.82 5559 11/12/25 --------------
Fund 101 Dept 140 Total 7,548.16
Fund 101 Dept 310 Planning DivisionPERS HEALTH 101-55021-310-000000 November Health 1,670.69 5559 11/12/25 --------------
Fund 101 Dept 310 Total 1,670.69
Fund 101 Dept 320 Building DivisionPERS HEALTH 101-55021-320-000000 November Health 556.90 5559 11/12/25 --------------
Fund 101 Dept 320 Total 556.90
Fund 101 Dept 410 Community HallANDREW CHARLES CANAPARY 101-63013-410-000000 FALL 2025 Classes 1,800.00 5592 11/12/25CONNIE STACK 101-63013-410-000000 FALL 2025 Classes 2,020.00 5544 11/12/25KATHY WADDELL 101-63013-410-000000 FALL 2025 Classes 728.00 5552 11/12/25MIA DIGIOVANNI 101-63013-410-000000 FALL 2025 Classes 1,800.00 5572 11/12/25PLATINUM FACILITY SERVICES 101-61051-410-000000 Janitorial Services 1,081.49 5561 11/12/25 - Oct 2025
SHELLY SWEENEY 101-63013-410-000000 FALL 2025 Classes 2,288.00 5563 11/12/25 --------------
Fund 101 Dept 410 Total 9,717.49
17 apackfnd2 Town of Portola Valley mmagahiz 11/05/2025 13:10 Page 3 Checks by Fund - 11/12/25 to 11/12/25
Vendor Name Account Invoice Invoice Amount Check Check
Compressed Description Number DateFormatted
Fund 101 Dept 420 Field RentalsGOT GOPHERS? 101-61055-420-000000 Town Fields Gopher 1,050.00 5570 11/12/25 Trapping- Oct 2025 J. W. ENTERPRISES 101-61056-420-000000 Handicap Unit 315.44 5551 11/12/25 Rental & Services J. W. ENTERPRISES 101-61056-420-000000 Handicap Unit 231.44 5551 11/12/25 Rental & ServicesMIRANDAS LANDSCAPE 101-61055-420-000000 Oct Landscape 2,106.00 5554 11/12/25 ServicesSIERRA PACIFIC TURF SUPPLY INC 101-61055-420-000000 Turf Grass Seed & 5,859.33 5564 11/12/25 Amendments for RenoProj
--------------
Fund 101 Dept 420 Total 9,562.21
Fund 101 Dept 510 Public WorksBAYSIDE EQUIPMENT COMPANY 101-62011-510-000000 Annual Service 521.23 5573 11/12/25 Maintenance onBack-up Generator HILLYARD INC 101-62011-510-000000 Janitorial Supplies 639.54 5548 11/12/25 NOLTE ASSOCIATES INC 101-62037-510-000000 Aug-Sept 25 624.25 5557 11/12/25 Applicant Charges & PW Support NOLTE ASSOCIATES INC 101-62037-510-000000 Jul 25 Applicant 1,581.25 5557 11/12/25Charges & PW Support PERS HEALTH 101-55021-510-000000 November Health 1,185.53 5559 11/12/25PLATINUM FACILITY SERVICES 101-61054-510-000000 Janitorial Services 2,296.91 5561 11/12/25 - Oct 2025
PLATINUM FACILITY SERVICES 101-62011-510-COVD19 Janitorial Services 448.01 5561 11/12/25 - Oct 2025. Fridays disinfection svcs
PORTOLA VALLEY HARDWARE 101-62014-510-000000 October Statement 138.69 5562 11/12/25 Tools
VIA HEART PROJECT 101-62011-510-000000 Town Center-LIFEPAK 470.47 5576 11/12/25 CR Plus Battery & 2Electrodes
--------------
Fund 101 Dept 510 Total 7,905.88
Fund 101 Dept 610 Non-DepartmentalAMAZON CAPITAL SERVICES, INC 101-62301-610-000000 Oxford Binder 30.09 5583 11/12/25 Dividers
AMAZON CAPITAL SERVICES, INC 101-62301-610-000000 Damage free 225.79 5583 11/12/25 adhesive, Lithium 18 apackfnd2 Town of Portola Valley mmagahiz 11/05/2025 13:10 Page 4 Checks by Fund - 11/12/25 to 11/12/25
Vendor Name Account Invoice Invoice Amount Check Check
Compressed Description Number DateFormatted
Charger, Post-It, Binders
AMAZON CAPITAL SERVICES, INC 101-62301-610-000000 15 & 10 lbs. Damage 18.45 5583 11/12/25 free hanging adhesive AMAZON CAPITAL SERVICES, INC 101-62301-610-000000 Bankers Storage 78.65 5583 11/12/25 file boxes 30 pk AMAZON CAPITAL SERVICES, INC 101-62301-610-000000 Work Phone case, 31.05 5583 11/12/25 Logitech Mouse AT&T CORP DBA ACC BUSINESS 101-62021-610-000000 ACC Division of 735.08 5584 11/12/25AT&TEthernet/InternetAccess Oct Stmt BOUCHER LAW, PC 101-62032-610-000000 08/01/24-08/31/24 2,520.50 5582 11/12/25 Legal Services
BOUCHER LAW, PC 101-62032-610-000000 11/01/24-11/30/24 4,522.50 5582 11/12/25 Legal Services
BOUCHER LAW, PC 101-62032-610-000000 06/01/25-06/30/25 1,687.50 5582 11/12/25 Legal Services CODA TECHNOLOGY GROUP 101-62046-610-000000 Service Technician- 685.00 5577 11/12/25 Troubleshoot CameraSwitcher failure
COMCAST 101-62021-610-000000 WIFI-10.21.2025-11. 232.27 5543 11/12/25

0.2025
EXCEL LD 101-62021-610-000000 Oct Telephone LD 22.74 5546 11/12/25 ServicesGRANICUS 101-62305-610-000000 Gov Access Plus 12,860.49 5547 11/12/25 Edition 9/24/2025 -9/23/2026
LEAF CAPITAL FUNDING, LLC 101-62307-610-000000 Toshiba Printer 609.80 5585 11/12/25 Copy Lease
NAVIA BENEFIT SOLUTIONS 101-55025-610-000000 Oct 2025 Monthly Fe 200.00 5556 11/12/25 OCCUSCREEN LLC 101-62399-610-000000 Recruitment 82.50 5558 11/12/25PERS HEALTH 101-55021-610-000000 November Health 950.79 5559 11/12/25SAN MATEO DAILY JOURNAL 101-62309-610-000000 Advertisement Oct 1,008.00 5586 11/12/25SAN MATEO DAILY JOURNAL 101-62309-610-000000 Advertisement Oct 1,008.00 5586 11/12/25STEPFORD 101-62046-610-000000 Monthly Service 3,920.00 5578 11/12/25 Charges 11/01/2025THRU 11/30/2025
STEPFORD 101-62305-610-000000 Veeam Backup and 621.50 5578 11/12/25 Replication for Disaster Recovery - Nov 25
THE LEW EDWARDS GROUP 101-62099-610-000000 Jul Consulting 5,750.00 5588 11/12/25 Services THE LEW EDWARDS GROUP 101-62099-610-000000 Sept Consulting 5,750.00 5588 11/12/25 Services VERIZON WIRELESS 101-62021-610-000000 October Cellular 855.52 5566 11/12/25WOODSIDE & PORTOLA PRIVATE 101-62399-610-000000 PV Town Picnic 682.50 5568 11/12/25 19 apackfnd2 Town of Portola Valley mmagahiz 11/05/2025 13:10 Page 5 Checks by Fund - 11/12/25 to 11/12/25
Vendor Name Account Invoice Invoice Amount Check Check
Compressed Description Number DateFormatted
Zotts to TotsTraffic Cntrl CleanUp
--------------
Fund 101 Dept 610 Total 45,088.72
--------------
Fund 101 Total 122,030.13
Fund 201 Dept 710 Roads & Right-of-WayST. FRANCIS ELECTRIC, LLC 201-74011-710-BEACNS Rectangular Rapid 7,967.75 5587 11/12/25 Flashing Beacon Project JB App #3 --------------
Fund 201 Dept 710 Total 7,967.75
--------------
Fund 201 Total 7,967.75
Fund 204 Dept 725 Open SpaceW H DEMPSEY ENGINEERING LLC 204-74011-725 Mow Springdown Open 1,550.00 5571 11/12/25 Space
--------------
Fund 204 Dept 725 Total 1,550.00
--------------
Fund 204 Total 1,550.00
Fund 205 Dept 510 Public WorksPLATINUM FACILITY SERVICES 205-61054-510-000000 Janitorial Services 1,110.27 5561 11/12/25 - Oct 2025
--------------
Fund 205 Dept 510 Total 1,110.27
--------------
Fund 205 Total 1,110.27
Fund 206 Dept 510 Public Works
20 apackfnd2 Town of Portola Valley mmagahiz 11/05/2025 13:10 Page 6 Checks by Fund - 11/12/25 to 11/12/25
Vendor Name Account Invoice Invoice Amount Check Check
Compressed Description Number DateFormatted
INTERSTATE TRAFFIC CNTRL 206-61013-510-000000 Community & 298.44 5550 11/12/25 Emergency Info, Neighborhood watch signs
--------------
Fund 206 Dept 510 Total 298.44
--------------
Fund 206 Total 298.44
Fund 222 Dept 310 Planning DivisionIACPV LLC 222-62099-310 Reimbursement - 70,026.76 5579 11/12/25 Planning Fees, Willow Comm Housing
URBAN PLANNING PARTNERS INC 222-62099-310 PVHE2 Housing 4,187.50 5574 11/12/25 Element AmendmentsSept 25
--------------
Fund 222 Dept 310 Total 74,214.26
--------------
Fund 222 Total 74,214.26
Fund 505 Dept 620 Road Maintenance DistrictsWILLIAM S REHLICH INC 505-62311-620 WHRMD 3 Traffic 3,895.69 5567 11/12/25 Grates Santa Maria& Tynan Way
--------------
Fund 505 Dept 620 Total 3,895.69
--------------
Fund 505 Total 3,895.69
Fund 701 Dept 340 Customer DepositsBRYSON ROOFING 701-62325-340 Deposit Refund - 5 1,000.00 5593 11/12/25 WintercreekDEL RIO ROOFING 701-62325-340 Deposit Refund - 1,000.00 5545 11/12/25 865 Portola Rd
LOS GATOS ROOFING 701-62325-340 Deposit Refund - 1,000.00 5553 11/12/25 140 Santa Maria Ave 21 apackfnd2 Town of Portola Valley mmagahiz 11/05/2025 13:10 Page 7 Checks by Fund - 11/12/25 to 11/12/25
Vendor Name Account Invoice Invoice Amount Check Check
Compressed Description Number DateFormatted
LOS GATOS ROOFING 701-62325-340 Deposit Refund - 70 1,000.00 5553 11/12/25 Stonegate Rd
LOS GATOS ROOFING 701-62325-340 Deposit Refund - 33 1,000.00 5553 11/12/25 Grove Dr
NOLTE ASSOCIATES INC 701-62038-340 Aug-Sept 25 28,962.23 5557 11/12/25 Applicant Charges & PW Support
NOLTE ASSOCIATES INC 701-62038-340 Jul 25 Applicant 16,154.25 5557 11/12/25 Charges & PW Support
PINNACLE BUILDING & DESIGN 701-62325-340 Deposit Refund - 1,000.00 5560 11/12/25 501 Portola Rd Unit 18E
SHUTE, MIHALY & WEINBERGER LLP 701-62033-340 Sept Legal Service 39.00 5580 11/12/25 --------------
Fund 701 Dept 340 Total 51,155.48
--------------
Fund 701 Total 51,155.48
--------------
**** Grand Total 262,222.02
* * * End of Report * * *
22 .
apapdinv2 mmagahiz Town of Portola Valley Page 1
13:10 11/05/25 Paid Invoices by Date
From: 11/12/2025 to 11/12/2025
Check Check Special Information Net Check Total Invoice NumberDate Number Amount Invoices Paid
Vendor: 115 CITY OF SOUTH SAN FRANCISCO
11/12/25 5542 COC Dinner Meeting, Judith Hasko, Helen Wolter 130.00 130.00 10242025 Vendor: 124 COMCAST
5543 WIFI-10.21.2025-11.20.2025 232.27 232.27 1945-NOV25 Vendor: 125 CONNIE STACK
5544 FALL 2025 Classes 2,020.00 2,020.00 FALL-2025
Vendor: 151 DEL RIO ROOFING
5545 Deposit Refund - 865 Portola Rd 1,000.00 1,000.00 BLDR0308-2025 Vendor: 176 EXCEL LD
5546 Oct Telephone LD Services 22.74 22.74 1199958160
Vendor: 200 GRANICUS
5547 Gov Access Plus Edition 9/24/2025 - 9/23/2026 12,860.49 12,860.49 214443 Vendor: 213 HILLYARD INC
5548 Janitorial Supplies 639.54 639.54 605974794
Vendor: 218 MISSIONSQUARE RETIREMENT
5549 Deferred Comp - Oct 31, 2025 1,182.77 1,182.77 OCT-202531 Vendor: 227 INTERSTATE TRAFFIC CNTRL
5550 Community & Emergency Info, Neighborhood watch signs 298.44 298.44 273062 Vendor: 234 J. W. ENTERPRISES
5551 Handicap Unit Rental & Services 546.88 315.44 269700 Handicap Unit Rental & Services 231.44 269701
Vendor: 269 KATHY WADDELL
5552 FALL 2025 Classes 728.00 728.00 FALL-2025.2
Vendor: 290 LOS GATOS ROOFING
5553 Deposit Refund - 70 Stonegate Rd 3,000.00 1,000.00 BLDR0292-2025 Deposit Refund - 140 Santa Maria Ave 1,000.00 BLDR0280-2025Deposit Refund - 33 Grove Dr 1,000.00 BLDR0298-2025 Vendor: 324 MIRANDAS LANDSCAPE
5554 Oct Landscape Services 2,106.00 2,106.00 2549
Vendor: 330 NAVIA BENEFIT SOLUTIONS
5555 Navia Benefit 10/31/2025 343.33 343.33 10312025
23 .
apapdinv2 mmagahiz Town of Portola Valley Page 2
13:10 11/05/25 Paid Invoices by Date
From: 11/12/2025 to 11/12/2025
Check Check Special Information Net Check Total Invoice NumberDate Number Amount Invoices Paid
Vendor: 330 NAVIA BENEFIT SOLUTIONS
5556 Oct 2025 Monthly Fee 200.00 200.00 11031681
Vendor: 334 NOLTE ASSOCIATES INC
5557 Jul 25 Applicant Charges & PW Support 47,321.98 17,735.50 JUL-2025 Aug-Sept 25 Applicant Charges & PW Support 29,586.48 AUG-SEP-2025 Vendor: 339 OCCUSCREEN LLC
5558 Recruitment 82.50 82.50 262142
Vendor: 364 PERS HEALTH
5559 November Health 20,271.03 20,271.03 100000018095624 Vendor: 372 PINNACLE BUILDING & DESIGN
5560 Deposit Refund - 501 Portola Rd Unit 18E 1,000.00 1,000.00 BLDR0256-2025 Vendor: 375 PLATINUM FACILITY SERVICES
5561 Janitorial Services - Oct 2025 4,936.68 4,488.67 51704 Janitorial Services - Oct 2025. Fridays disinfection svcs 448.01 51705 Vendor: 376 PORTOLA VALLEY HARDWARE
5562 October Statement Tools 138.69 138.69 193-OCT25
Vendor: 429 SHELLY SWEENEY
5563 FALL 2025 Classes 2,288.00 2,288.00 FALL-2025
Vendor: 431 SIERRA PACIFIC TURF SUPPLY INC
5564 Turf Grass Seed & Amendments for Reno Proj 5,859.33 5,859.33 043032 Vendor: 445 STANDARD INSURANCE CO.
5565 LTD/Life Premium 543.13 543.13 2025-OCT
Vendor: 489 VERIZON WIRELESS
5566 October Cellular 855.52 855.52 6126912250
Vendor: 502 WILLIAM S REHLICH INC
5567 WHRMD 3 Traffic Grates Santa Maria & Tynan Way 3,895.69 3,895.69 10132025 Vendor: 504 WOODSIDE & PORTOLA PRIVATE
5568 PV Town Picnic Zotts to Tots Traffic Cntrl Clean Up 1,267.50 1,267.50 241047 Vendor: 507 WOODSIDE PRIORY
5569 Deposit Refund - Community Hall 1,000.00 1,000.00 PRCH-25-4 24 .
apapdinv2 mmagahiz Town of Portola Valley Page 3
13:10 11/05/25 Paid Invoices by Date
From: 11/12/2025 to 11/12/2025
Check Check Special Information Net Check Total Invoice NumberDate Number Amount Invoices Paid
Vendor: 518 GOT GOPHERS?
5570 Town Fields Gopher Trapping- Oct 2025 1,050.00 1,050.00 93306 Vendor: 545 W H DEMPSEY ENGINEERING LLC
5571 Mow Springdown Open Space 1,550.00 1,550.00 2217
Vendor: 698 MIA DIGIOVANNI
5572 FALL 2025 Classes 1,800.00 1,800.00 FALL-2025
Vendor: 712 BAYSIDE EQUIPMENT COMPANY
5573 Annual Service Maintenance on Back-up Generator 521.23 521.23 86910 Vendor: 730 URBAN PLANNING PARTNERS INC
5574 PVHE2 Housing Element Amendments Sept 25 4,187.50 4,187.50 25030-250930 Vendor: 744 PATTY DEWES
5575 Town Picnic & Zotts to Tots Fun Run 2025 Reimbursement 2,336.96 2,336.96 FRRC-25-3 Vendor: 751 VIA HEART PROJECT
5576 Town Center-LIFEPAK CR Plus Battery & 2 Electrodes 470.47 470.47 5777 Vendor: 803 CODA TECHNOLOGY GROUP
5577 Service Technician- Troubleshoot Camera Switcher failure 685.00 685.00 8462 Vendor: 860 STEPFORD
5578 Monthly Service Charges 11/01/2025 THRU 11/30/2025 4,541.50 3,920.00 2502223 Veeam Backup and Replication for Disaster Recovery - Nov 25 621.50 2502224 Vendor: 1002 IACPV LLC
5579 Reimbursement - Planning Fees, Willow Comm Housing 70,026.76 70,026.76 2978-2025 Vendor: 1016 SHUTE, MIHALY & WEINBERGER LLP
5580 Sept Legal Service 23,644.59 23,644.59 SEP-25-SMW
Vendor: 1064 HDL COREN & CONE
5581 Contract Svcs Prop Tax - Oct-Dec 25 1,504.34 1,504.34 SIN055922 Vendor: 1091 BOUCHER LAW, PC
5582 08/01/24-08/31/24 Legal Services 8,730.50 2,520.50 2484 11/01/24-11/30/24 Legal Services 4,522.50 248706/01/25-06/30/25 Legal Services 1,687.50 2840 Vendor: 1152 AMAZON CAPITAL SERVICES, INC
5583 Damage free adhesive, Lithium Charger, Post-It, Binders 384.03 225.79 1DVW-R64C-7PH9 25 .
apapdinv2 mmagahiz Town of Portola Valley Page 4
13:10 11/05/25 Paid Invoices by Date
From: 11/12/2025 to 11/12/2025
Check Check Special Information Net Check Total Invoice NumberDate Number Amount Invoices Paid
11/12/25 5583 15 & 10 lbs. Damage free hanging adhesive 384.03 18.45 1KM1-Y6JN-7KT9 Bankers Storage file boxes 30 pk 78.65 1L6P-WFNC-C6NYWork Phone case, Logitech Mouse 31.05 1MD1-THDY-9FN9Oxford Binder Dividers 30.09 1 PLM-HLXL-6XVY Vendor: 1186 AT&T CORP DBA ACC BUSINESS
5584 ACC Division of AT&T Ethernet/Internet Access Oct Stmt 735.08 735.08 8744686011 Vendor: 1195 LEAF CAPITAL FUNDING, LLC
5585 Toshiba Printer Copy Lease 609.80 609.80 19218185
Vendor: 1214 SAN MATEO DAILY JOURNAL
5586 Advertisement Oct 2,016.00 1,008.00 16294
Advertisement Oct 1,008.00 16295
Vendor: 1235 ST. FRANCIS ELECTRIC, LLC
5587 Rectangular Rapid Flashing Beacon Project JB App #3 7,967.75 7,967.75 240560RET Vendor: 1286 THE LEW EDWARDS GROUP
5588 Jul Consulting Services 11,500.00 5,750.00 001
Sept Consulting Services 5,750.00 003
Vendor: 1291 EVENT 360
5589 Deposit Refund - Event 360 Anti-Litter 130.00 130.00 SEP-25-2 Vendor: 1292 WOODLAND SCHOOL
5590 Deposit Refund - Woodland School Fun Run Event 130.00 130.00 SEP-25-5 Vendor: 1293 SILICON VALLEY BICYCLE COALITI
5591 Deposit Refund - Event SVBC 130.00 130.00 SEP-25-4 Vendor: 1294 ANDREW CHARLES CANAPARY
5592 FALL 2025 Classes 1,800.00 1,800.00 FALL-2025
Vendor: 1295 BRYSON ROOFING
5593 Deposit Refund - 5 Wintercreek 1,000.00 1,000.00 BLDR0258-2025 Check Date Totals 262,222.02
Grand Total 262,222.02
26 TOWN OF PORTOLA VALLEY

STAFF REPORT
TO: Mayor and Members of the Town Council
FROM: Corie Stocker-Pedalino, Assistant Town Manager, Darcy Smith, Town Manager DATE: November 12, 2025
RE: Consider Adoption of a Resolution Appointing a Director and an Alternate Director to Serve on the Board of Directors of Pooled Liability Assurance Network Joint Exercise of Powers Agreement (PLAN JPA) on Behalf of the Town of Portola Valley

RECOMMENDATION
Staff recommend that the Town Council adopt a Resolution appointing a Director and an Alternate Director to Serve on the Board of Directors of Pooled Liability Assurance Network Joint Exercise of Powers Agreement (PLAN JPA) on behalf of the Town of Portola Valley.

BACKGROUND
The Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA) is a joint powers insurance authority consisting of 28 member cities in the San Francisco bay area. Members of PLAN JPA collectively share the risk of self-insured losses and purchase a broad range of risk management services including, but not limited to program administration, accounting and finance, claims administration, risk control, loss prevention, actuarial services, training and education, and legal services to support the shared risk programs.

Originally created in 1986 by the Association of Bay Area Governments (ABAG), PLAN was formed as a non-profit public benefit corporation to assist member communities that were struggling to obtain affordable liability insurance. The Town has participated since 1986.

The Town Council is required to formally adopt a resolution appointing the Town’s representatives to serve on the Board of Directors of PLAN JPA on behalf of the Town. The resolution must indicate which Town positions within the Town are to serve on the PLAN JPA Board of Directors as the Primary Representative and the Alternate Representative. PLAN JPA members have generally appointed individuals in a variety of positions to the Board as voting members and alternates, such as city/town managers, assistant city/town managers, city/town attorneys, finance directors, human resources directors, or administrative services managers. Participation on the Board of Directors is carried out by Town staff as part of their regular duties and does not result in any additional remuneration to the employee, or any additional cost to the Town.

DISCUSSION
This agenda item serves to present a Resolution appointing a Director and an Alternate Director to Serve on the Board of Directors of Pooled Liability Assurance Network Joint Exercise of Powers Agreement (PLAN JPA) on behalf of the Town of Portola Valley.

Staff recommends updating the representatives as follows:
27 Primary Representative: Assistant Town Manager
Alternate Representative: Town Manager

FISCAL IMPACT
There is no fiscal impact on the updating of the Town’s Representatives for Plan JPA.

ATTACHMENTS

1. Resolution
28 RESOLUTION NO. 2981-2025

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF

PORTOLA VALLEY APPOINTING A DIRECTOR AND AN ALTERNATE

DIRECTOR TO SERVE ON THE BOARD OF DIRECTORS OF THE

POOLED LIABILITY ASSURANCE NETWORK JOINT EXERCISE OF

POWERS AGREEMENT (PLAN JPA) ON BEHALF OF THE TOWN OF

PORTOLA VALLEY
WHEREAS, the Town of Portola Valley (“Town”) has been a charter member with the Association of Bay Area Governments Pooled Liability Assurance Network (ABAG PLAN) Corporation formed in 1986 as a non-profit public benefit corporation; WHEREAS, ABAG PLAN was replaced by the Pooled Liability Assurance Joint Exercise of Powers Agreement (PLAN JPA), effective June 2018. The Town Council adopted Resolution No. 2747-2017 on December 13, 2027 authorizing the Town’s participation in the JPA;
WHEREAS, (PLAN JPA) is a joint powers insurance authority consisting of 28 member cities in the San Francisco bay area. Members of PLAN JPA collectively share the risk of self-insured losses and purchase a broad range of risk management services including, but not limited to program administration, accounting and finance, claims administration, risk control, loss prevention, actuarial services, training and education, and legal services to support the shared risk programs; WHEREAS, the operation and administration of the PLAN JPA programs are governed by a Board of Directors consisting of one representative from each member agency;
WHEREAS, the Town Council is required to formally adopt a resolution appointing the Town’s representatives to serve on the Board of Directors of PLAN JPA on behalf of the Town. The resolution must indicate which Town positions within the Town are to serve on the PLAN JPA Board of Directors as the Primary Representative and the Alternate Representative; and,
WHEREAS, participation on the Board of Directors is carried out by Town staff as part of their regular duties and does not result in any additional remuneration to the employee.

NOW, THEREFORE, the Town Council of the Town of Portola Valley does hereby RESOLVE as follows:

The Town of Portola Valley hereby appoints the following positions to be designated as representatives to Plan JPA’s Board of Directors:
29 Primary Representative: Assistant Town Manager
Alternate Representative: Town Manager
PASSED AND ADOPTED at the regular meeting of the Town of Portola Valley on November 12, 2025.

AYES:

NOES:

ABSENT:

ABSTAIN:

By: _________________________
Judith Hasko, Mayor
ATTEST:
_________________________
Veronica Dao, Town Clerk
30 TOWN OF PORTOLA VALLEY

STAFF REPORT
TO: Mayor and Members of the Town Council
FROM: Steve McHarris, Interim Planning and Building Director DATE: November 12, 2025
RE: Hold Public Hearing and Consider Introduction of an Ordinance to Adopt the 2025 California Building Standards Code and Local Amendments

RECOMMENDATION
Staff recommends that the Town Council:

1. Conduct a public hearing and introduce and waive the first reading of an ordinance adopting the 2025 California Building Standards Code with local amendments to those codes (Attachment 1); and

2. Direct staff to place the ordinance and the attached resolution making findings related to the local amendments to the California Building Standards Code (Attachment 2) on the consent calendar for adoption at the next Town Council meeting.

BACKGROUND
The California Building Standards Code (California Code of Regulations, Title 24, Parts 1, 2, 2.5, 3, 4, 5, 6, 7, 8, 9, 10, 11, & 12) (“CBSC”) is updated and published in its entirety every three years; this is sometimes called the “three year code cycle.” The updated CBSC is applicable statewide and is enforced by local governments through the building permit process. The CBSC applies to all buildings and structures for which a building permit application is submitted during the CBSC’s effective period.

The CBSC incorporates regulations applicable to disciplines of the construction industry including the Building, Electrical, Mechanical, and Plumbing Codes.

The CBSC is based on model codes written by the International Code Council, the National Fire Protection Association, the International Association of Plumbing and Mechanical Officials, the California Building Standards Commission, and California Energy Commission. The publication of code updates by these organizations triggers State consideration, amendment, and adoption of an updated set of codes to be used by jurisdictions within the State. The 2025 CBSC goes into effect on January 1, 2026 and all applications for building permits submitted after January 1, 2026 will be subject to the 2025 CBSC.

State law authorizes local governments to amend or modify the Building Standards Code so long as they make express findings that their changes are necessary for local climatic, geological, or topographical conditions. The local amendments must be substantially equivalent to, or more restrictive than, the building standards in the CBSC. Local amendments to the Building Standards Code can be approved at any time during a triennial code cycle; however, common practice is to have these local amendments approved such that they become effective with the new Building Standards Code to provide for clarity in the building permit application process. The adoption of the CBSC with local amendments is a standard activity that occurs across the State. The last CBSC adoption in the Town occurred in 2022.

Following the passage of AB 130 in June 2025, local governments adopting changes to building 31 standards that affect residential units must find that these changes satisfy one of several conditions listed in state law. The Town of Portola Valley’s proposed modifications affecting residential units in the state building standards in the attached ordinance all meet one or more conditions set out in AB 130. The proposed ordinance includes a matrix of reasons for each change, which explains how each change meets one or more of these conditions.

DISCUSSION
Title 15, Buildings and Construction, of the Town of Portola Valley Municipal Code, incorporates the CBSC plus locally adopted amendments to the codes. This Title is known as the Building Code of the Town of Portola Valley. The Building Code of the Town of Portola Valley applies to the construction of any building or structure in the Town on public or private land except for structures constructed in the public right of way.

The proposed ordinance (Attachment 1) adopts all parts of the 2025 California Building Standards Code:

Part 1 (California Administrative Code), Part 2 (Building Code volumes 1 and 2), Part 2.5 (California Residential Code), Part 3 (California Electrical Code), Part 4 (California Mechanical Code), Part 5 (California Plumbing Code), Part 6 (California Energy Code), Part 7 (California Wildland-Urban Interface Code), Part 8 (California Historic Building Code), Part 9 (California Fire Code), Part 10 (California Existing Building Code), Part 11 (California Green Building Standards Code), and Part 12 (California Reference Standards Code) by reference. The ordinance would make certain modifications to the 2025 CBSC that are reasonably necessary because of local climatic, geological, and topographical conditions.

At a later date, the Town will consider ratifying the Woodside Fire Protection District (“Fire District”) ordinance adopting the California Fire Code with modifications. Pursuant to state law, the Fire District’s ordinance is not effective in Portola Valley until the Town ratifies that ordinance. However, the Fire District has not yet adopted its modifications to the state Fire Code.

New to the 2025 California Building Standards Code is Part 7, the Wildland-Urban Interface Code. All previous amendments to California Building Code Section 7A and California Residential Code Section 337—which concerned structures built in Wildland-Urban Interface areas—have been moved to the new Wildland-Urban Interface Code.

Discussion of reach code measures
The proposed ordinance repeals the Town’s all-electric reach code previously codified in Municipal Code Sections 15.04.080(XXX) and (BBBB). These provisions required all new buildings to be all-electric, with no natural gas allowed. The Town is repealing this requirement in response to a 2024 decision from the U.S. Court of Appeals for the Ninth Circuit in California Restaurant Association v. City of Berkeley, 89 F.4th 1094 (9th Cir. 2024), which held that the Energy Policy and Conservation Act preempted Berkeley’s building code that prohibited natural gas piping in new buildings. Although the proposed ordinance repeals the all-electric requirement, residents still have the option of all-electric construction.

The proposed ordinance includes two reach code provisions that are permissible following the Berkeley decision, and which are consistent with or extend current requirements under the existing municipal code. First, the ordinance includes a two-way air conditioning reach code measure based on the model code available on the Bay Area Reach Codes website: https://bayareareachcodes.org/model-reachcodes/. This reach code would apply to projects in existing single-family homes, duplexes and townhomes that include replacement or alteration of an existing air conditioning system or installation of new air conditioning systems. It would require that such projects either include a heat pump space conditioner to replace the air conditioning unit, or install specific energy-related measures in addition to a new air conditioner. This would make mandatory an amended version of the voluntary requirements of the 2025 Title 24, Part 11 California Green Building Standards Code (CALGreen). The attached study commissioned by the California Codes and Standards Program (see Attachment 3) has found that the 32 proposed requirements are cost effective and will result in a reduction in Long-Term System Cost (LSC) energy relative to the existing building.

This new two-way air conditioning measure is consistent with the Town’s previously-adopted air conditioning-to-heat pump reach code codified in Municipal Code Section 15.040.080(YYY), but the new measure would provide additional compliance options.

Second, the ordinance retains the Town’s previously-adopted electric-readiness measures codified in Municipal Code Section 15.080(YYY). These measures apply to residential construction additions, alterations, repairs, and/or accessory dwelling conversions that replace or upgrade the main electric panel. These projects must provide electrical capacity for future electrification of appliances, and must install a dedicated 240-volt branch circuit within three feet of the existing water heater.

FISCAL IMPACT
No fiscal impact.

ATTACHMENTS

1. Ordinance amending Title 15 (Buildings and Construction) of the Town of Portola Valley Municipal Code to adopt the 2025 California Building Standards Code Parts 1, 2, 2.5, 3, 4, 5, 6, 7, 8, 9, 10, 11, & 12 with amendments thereto

2. Resolution making findings related to the local modifications

3. 2025 Single Family AC to Heat Pump Cost-Effectiveness Study 33 1
ORDINANCE NO. 2025-xxx

ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF
PORTOLA VALLEY REPEALING AND REPLACING CHAPTER 15.04
[BUILDING CODE] OF TITLE 15 [BUILDINGS AND CONSTRUCTION] OF

THE PORTOLA VALLEY MUNICIPAL CODE ADOPTING BY REFERENCE THE 2025 CALIFORNIA ADMINISTRATIVE, BUILDING, RESIDENTIAL,

ELECTRICAL, MECHANICAL, PLUMBING, ENERGY, WILDLAND-URBAN

INTERFACE, HISTORICAL, FIRE, EXISTING BUILDING, GREEN

BUILDING STANDARDS, AND REFERENCED STANDARDS CODES WITH

LOCAL AMENDMENTS
The Town Council of the Town of Portola Valley does ordain as follows:

SECTION 1: FINDINGS: The Town Council of the Town of Portola Valley finds and declares as follows:
(a) Health and Safety Code Section 18941.5, with reference to Section 17958.7, allows for more restrictive local amendments to the current California Building Standards Code (“Building Codes”) that are reasonably necessary because of local climatic, geological, or topographical conditions.
(b) The Portola Valley Town Council expressly declares that these proposed amendments to the Building Codes are reasonably necessary because of local climatic, topographical, and geological conditions pursuant to Health and Safety Code Sections 18941.5 and 17958.5, and the Town Council hereby adopts the findings of reasonable necessity as set forth in the Resolution accompanying this ordinance.
(c) Express findings that these modifications to the Building Codes are reasonably necessary are hereby made and will be filed with the California Building Standards Commission in accordance with California Health and Safety Code Section 17958.7 before this ordinance takes effect.
(d) Health and Safety Code Sections 17958, 17958.5 and 17958.7, as modified by AB 130, allow local jurisdictions to make changes to state building standards affecting residential units so long as those changes meet one or more conditions.
(e) The Portola Valley Town Council expressly declares that the Town’s modifications to the Building Codes that affect residential units satisfy one or more of the conditions set out in Health and Safety Code Sections 17958, 17958.5 and 17958.7, as modified by AB 130 (the “AB 130 conditions”), and the Town Council hereby adopts the findings related to the AB 130 conditions as set forth in the Resolution accompanying this ordinance. (f) Pursuant to Sections 17958, 17958.5 and 17958.7 of the Health and Safety Code, as modified by AB 130, the two-way air conditioning and electric-readiness changes to building standards affecting residential units in the 2025 California Green Building Standards Code are necessary to implement the Town’s local code amendment adding a two-way air conditioning and electric-readiness requirement. This local code amendment is adopted to align with the Town’s General Plan Sustainability Element adopted in 2009, permits mixed34 2 fuel residential construction consistent with federal law, and incentivizes all-electric construction, as part of the Town’s adopted greenhouse gas emissions reduction strategy in its General Plan Sustainability Element. Express findings that these changes satisfy the requirements of Condition 5 added by AB 130 are hereby made and will be filed with the California Building Standards Commission in accordance with California Health and Safety Code Section 17958.7 before this ordinance takes effect. (g) In accordance with Public Resources Code Section 25402.1(h)(2) and Section 10-106 of the 2025 California Administrative Code (Cal. Code Regs. Title 24, Part 1), the Town Council has found that the Town’s two-way air conditioning reach code modifications to the energy standards in the California Green Building Standards Code described herein are costeffective, and that the modifications will require the diminution of energy consumption levels permitted by the Energy Code. The Town Council’s findings of cost-effectiveness and energy savings will be filed with the California Energy Commission in accordance with Public Resources Code Section 25402.1(h)(2) and Title 24 Section 10-106 before this ordinance takes effect.

SECTION 2: REPEAL OF CODE: Sections 15.04.010 [Building Code]; 15.04.020 [Amendments to the California Building Code]; 15.04.030 [Administration of the California Residential Code]; 15.04.040, 15.04.050, 15.04.070 [Reserved]; 15.04.060 [Amendments to the California Plumbing Code]; 15.04.080 [Amendments to the California Green Building Standards Code] of Chapter 15.04 [Building Code] of Title 15 [Buildings and Construction] of the Town of Portola Valley Municipal Code are hereby repealed.

SECTION 3: ADOPTION OF CODE: Section 15.04.010 [Building Code] of Chapter

15.04 [Building Code] of Title 15 [Buildings and Construction] of the Town of Portola Valley Municipal Code is hereby adopted to read as follows:

The town's building code is comprised of the following uniform codes:

A. 2025 California Administrative Code (Part 1 of Title 24) California Code of Regulations, California Building Standards Commission; and B. 2025 California Building Code, Volumes 1 and 2 (Part 2 of Title 24) California Code of Regulations, California Building Standards Commission Based on the 2024 International Building Code (IBC) published by the International Code Council (ICC), with modifications; and
C. 2025 California Residential Code (Part 2.5 of Title 24) California Code of Regulations, California Building Standards Commission and Appendices:

Appendix BF: Patio Covers; Appendix BG: Sound Transmission and Appendix CI:

Swimming Pool Safety Act, based on the 2024 International Residential Code (IRC) published by the International Code Council, with modifications; and 35 3
D. 2025 California Electrical Code (Part 3 of Title 24) California Code of Regulations, California Building Standards Commission Based on the 2023 National Electrical Code (NEC) published by the National Fire Protection Association; and
E. 2025 California Mechanical Code (Part 4 of Title 24) California Code of Regulations, California Building Standards Commission Based on the 2024 Uniform Mechanical Code (UMC) published by the International Association of Plumbing and Mechanical Officials (IAPMO); [and]
F. 2025 California Plumbing Code (Part 5 of Title 24) California Code of Regulations, California Building Standards Commission based upon the 2024 Uniform Plumbing Code (UPC) published by the International Plumbing and Mechanical Officials (IAPMO) and Appendix K with modifications; [and] G. 2025 California Energy Code (Part 6 of Title 24) California Code of Regulations, California Building Standards Commission; and
H. 2025 California Wildland-Urban Interface Code (Part 7 of Title 24) Adopted by the Building Standards Commission with modifications.

I. 2025 California Historical Building Code (Part 8 of Title 24), California Code of Regulations, California Building Standards Commission; and J. 2025 California Fire Code (Part 9 of Title 24) California Code of Regulations, California Building Standards Commission Based on the 2024 International Fire Code (IRC) published by the International Code Council; and K. 2025 California Existing Building Code (Part 10 of Title 24) California Code of Regulations, California Building Standards Commission; and L. 2025 Green Building Standards Code (Cal Green) (Part 11 of Title 24) California Code of Regulations, California Building Standards Commission with modifications; and
M. 2025 California Referenced Standards Code (Part 12 of Title 24) Adopted by the Building Standards Commission.

SECTION 4: ADOPTION AND AMENDMENT OF BUILDING CODE. Section

15.04.020 [Amendments to the California Building Code] of Chapter 15.04 [Building Code] of Title 15 [Buildings and Construction] of the Town of Portola Valley Municipal Code is hereby adopted to read as follows:

15.04.020 – Adoption of and Amendments to the California Building Code.

A. The 2025 California Building Code, Title 24, Part 2, Volume 1 and 2, referred to throughout this Chapter as the "Building Code," is hereby referred to and, except as to additions, deletions and amendments hereinafter described, such code is hereby adopted and made a part hereof, the same as if fully set forth in this Article, and shall be the Building Code of the Town. In accordance with California Health and Safety Code Section 17958.7, express findings that modifications to the Building Code are 36 4
reasonably necessary because of local climatic, geological, or topographical conditions are either already on file with the California Building Standards Commission or will be filed prior to the effective date of the ordinance codified in this Article.

B. Subsection 101.1 of the California Building Code is hereby amended to read as follows:
[A] 101.1 Title.

These regulations shall be known as the Building Code of the Town of Portola Valley, hereinafter referred to as “this code”.

C. Subsection 105.2 of the California Building Code is hereby amended to read as follows:
[A] 105.2 Work exempt from permit.

Exemptions from permit requirements of this code shall not be deemed to grant authorization for any work to be done in any manner in violation of the provisions of this code or any other laws or ordinances of this jurisdiction. Permits shall not be required for the following:

1. One-story detached accessory building used as a tool or storage shed, playhouse, and similar use provided the floor area does not exceed 120 square feet (11.15 m2). It is permissible that these structures still be regulated by Section 710A, despite exemption from permit.

2. Nonfixed and movable fixtures, cases, racks, counters and partitions not over five feet nine inches (1753 mm) in height

3. Retaining walls that are not over four feet (1219 mm) in height measured from the bottom of the footing to the top of the wall, unless supporting a surcharge or impounding Class I, II or III-A Liquids.

4. Water tanks supported directly on grade if the capacity is not greater than 5,000 gallons (18 925 L) and the ratio of height to diameter or width does is not greater than 2:1.

5. Platforms and walks, not more than 30 inches (762 mm) above adjacent grade, and not over any basement or story below and are not part of an accessible route.

6. Painting, papering, tiling, carpeting, cabinets, counter tops and similar finish work.

7. Window awnings in Group R, Division 3 (Single Family Residence), and Group U (Private Garage) Occupancies, supported by an exterior wall that do not project more than 54 inches (1372 mm) from the exterior wall and do not require additional support.

8. Prefabricated swimming pools accessory to a Group R, Division 3 Occupancy that 37 5
are less than 24 inches (610 mm) deep, are not greater than 5,000 gallons (18 925 L) and are installed entirely above ground.

9. Swings, temporary sports devices, and other playground equipment accessory to detached one- and two-family dwellings.

D. Subsection 109.6 of the California Building Code is hereby amended to read as follows:
[A] 109.6 Refunds.

The Building Official may authorize refunding of:

1. Any fee paid hereunder, which was erroneously paid or collected.

2. Not more than 80 percent of the permit fee paid when no work has been done under a permit issued in accordance with this code.

3. Not more than 80 percent of the plan review fee paid when an application for a permit for which a plan review fee has been paid is withdrawn or cancelled before any plan reviewing is done.

The Building Official shall not authorize refunding of any fee paid except on written application filed by the original permittee not later than 180 days after the date of the fee payment.

E. Subsection 111.3 of the California Building Code is hereby amended to read as follows:
[A] 111.3 Temporary occupancy.

The building official is authorized to issue a temporary certificate of occupancy before the completion of the entire work covered by the permit, provided that such portion or portions shall be occupied safely. The building official shall set a time period during which the temporary certificate of occupancy is valid. Even if a temporary occupancy permit has been obtained, in no event shall a building be sold or transferred until the final inspection has been signed by the town's building official.

A. Upon request, the town's building official shall provide an applicant with an application for temporary occupancy permit and a list of the town's minimum requirements for temporary occupancy permit. The minimum requirements for temporary occupancy permit shall be developed by the town's building official at their sole discretion.

B. The town's building official may at their sole discretion issue a temporary occupancy permit for the use of a portion or portions of a building if, and only if, the applicant provides a surety deposit in the form of a letter of credit from a savings institution and made payable to the town of Portola Valley or a cashier's check in the amount of ten thousand dollars.
38 6

1. Any costs of the town in enforcing the terms of the temporary occupancy permit or removing occupants from the premises shall be deducted from the surety deposit. If the costs to the town exceed the amount of the surety deposit, the applicant shall be responsible for immediately paying the town any deficiency.

2. The town may in its sole discretion require further deposits or bonds, in an amount not to exceed the cost of completion of the project, plus up to twenty percent to cover any costs incurred by the town in completing the project.

C. The duration of a temporary occupancy permit shall not be more than one year from the date of approval of the temporary occupancy permit. Failure to complete the project within the lesser of one year or the time period indicated on the temporary occupancy permit may result in the immediate revocation of the temporary occupancy permit and eviction from the premises.

D. If the project is not completed in the time set forth in the temporary occupancy permit, which in no event shall exceed one year, the applicant shall show cause for the failure to complete the project and submit a schedule for completion. The applicant must show cause and present a schedule to the town's building official within ten days of the expiration of the temporary occupancy permit or no extension or reinstatement of the temporary occupancy permit will be allowed. The town's building official shall have sole discretion whether to revoke or extend the temporary occupancy permit in light of the evidence concerning the failure to complete the project. The town's building official shall have sole discretion as whether or not the revised scheduled is acceptable. Within ten days of the applicant presenting evidence and a revised schedule, the town's building official shall either extend or revoke the temporary occupancy permit.

E. If a temporary occupancy permit is revoked, the utilities will be disconnected from the project and abatement proceeding may occur in accordance with the town's municipal code and local, state and federal rules and regulations.

F. Subsection 113.1 of the California Building Code is hereby amended to read as follows:
[A] 113.1 General.

In order to hear and decide appeals of orders, decisions or determinations made by the building official relative to the application and interpretation of this code, there shall be and is hereby created a board of appeals. The board of appeals shall be the Town Council. The board shall render all findings in writing to the appellant with a duplicate copy to the building official.

G. Subsection 114.4 of the California Building Code is hereby amended to read as follows:
[A] 114.4 Violation penalties.

Any person who commences any work for which a permit is required, such as, but not 39 7
limited to: grading, demolition, or on a building, structure, electrical, gas, mechanical, fire protection or plumbing system before obtaining the necessary permits shall be subject to a fee established by fee resolution that shall be in addition to the required permit fees. Double Building Permit Fees will apply at a minimum of $500.00 plus $500.00 fine may be added for each violation (type of construction) where a building permit should have been issued.

H. Subsection 903.2 of the California Building Code is hereby added to read as follows:
903.2 Where required.

An approved automatic sprinkler system in buildings and structures shall be provided in the locations described in 903.2.1 through 903.2.12 and Sections 903.2.14 through 903.2.21.

Exceptions:

1. An approved automatic sprinkler system shall not be required in existing structures where repairs, alterations, additions and additions that include alterations are made to unsprinklered, existing buildings when building permit(s) have been issued within any 12-month period that collectively do not exceed more than 50 percent of the existing floor area, 50 percent of the existing wall area or when the combination of the percentages of affected floor area and affected wall area exceeds 50 percent. The following guidance shall be used to calculate these percentages:
a. Calculation of Percentage of Affected Floor Area (PFA):

The floor area of any addition, all rooms affected by any addition, and the floor area of all rooms affected by structural changes made in the building, such as walls, columns,
beams or girders, floor or ceiling joists and coverings, roof rafters, roof diaphragms, footings, piles or retaining walls or similar components, shall be included in computing the floor areas for applying this section.
b. Calculation of Percentage of Affected Wall Area (PWA):

The calculated wall area affected shall include all interior and exterior walls where no studs are proposed to be remain or if some studs remain and/or if the surface of both sides of the studs are proposed to be removed such that one can see through the wall.
c. Calculation of Combination of Percentage of Affected Floor Area (PFA) and Wall Area (PWA): The combination
40 8
of the percentage of affected floor as described above plus the percentage of wall area as described above (PFA + PWA > 50%).

I. Subsection 1031.2 of the California Building Code is hereby amended to read as follows:
1031.2 Where required.

In addition to the means of egress required by this chapter, emergency escape and rescue openings shall be provided in Group R occupancies.

Basements and sleeping rooms below the fourth story above grade plane shall have not fewer than one emergency escape and rescue opening in accordance with this section.

Where basements contain one or more sleeping rooms, an emergency escape and rescue opening shall be required in each sleeping room but shall not be required in adjoining areas of the basement. Such openings shall open directly into a public way or to a yard or court that opens to a public way.

Exceptions:

1. In group R-1 and R-2 occupancies constructed of Type I, Type IIA, Type IIIA or Type IV construction equipped throughout with an approved automatic sprinkler system in accordance with Section 903.3.1.1.

2. Group R-2.1 occupancies meeting the requirements for delayed egress in accordance with Section 1010.2.13 may have operable windows that are breakable in sleeping rooms permanently restricted to a maximum of 4-inch open position.

3. Basements with a ceiling height of less than 80 inches (2032 mm) shall not be required to have emergency escape and rescue openings.

4. Emergency escape and rescue openings are not required from basements or sleeping rooms that have an exit door or exit access door that opens directly into a public way or to a yard, court or exterior egress balcony that opens to a public way.

5. Basements without habitable spaces and having not more than 200 square feet (18.6 m2) in floor area shall not be required to have emergency escape and rescue openings.

6. Storm shelters are not required to comply with this section where the shelter is constructed in accordance with ICC 500.

J. Section 1405.1 of the California Building Code is hereby amended to read as follows:
1405.1 Combustible exterior wall coverings.
41 9
Exterior wall coverings shall be of noncombustible materials.

Exception: Alterations to existing exterior wall coverings that affect less than 10% of the exterior of the building.

K. Section 1505.1 of the California Building Code is hereby amended to read as follows:
[BF] 1505.1 General.

The minimum roof coverings installed on buildings shall be Class A rated tested in accordance with ASTM E108 or UL 790 such as concrete, tile, metal or slate. Wood roof coverings are prohibited.

Exception:

1. Roof covering replacement that affects 25% or less of the building structure.

L. Table 2308.10.1 of section 2308.10 of the California Building Code is hereby amended as follows:

The title of Table 2308.10.1 is amended to read:

Table 2308.10.1 Wall Bracing Requirements
Footnotes are added as follows:

Footnotes “f” and “g” are added to Table 2308.10.1, to read:
f. Methods PBS, HPS, and SFB are not permitted in Seismic Design Categories D or E.
g. Methods GB, DWB and PCP are not permitted in Seismic Design Category E.

SECTION 5: ADOPTION AND AMENDMENT OF RESIDENTIAL CODE. Section

15.04.030 [Amendments to California Residential Code] of Chapter 15.04 [Building Code] of Title 15 [Buildings and Construction] of the Town of Portola Valley Municipal Code is hereby adopted to read as follows:

Section 15.04.030 – Adoption of and Amendments to the California Residential Code.

A. The 2025 California Residential Code, Title 24, Part 2.5, referred to throughout this Chapter as the "Residential Code," is hereby referred to and, except as to additions, deletions and amendments hereinafter described, such code is hereby adopted and made a part hereof, the same as if fully set forth in this Article, and shall be the Residential Code of the Town. In accordance with California Health 42 10
and Safety Code Section 17958.7, express findings that modifications to the Residential Code are reasonably necessary because of local climatic, geological, or topographical conditions are either already on file with the California Building Standards Commission or will be filed prior to the effective date of the ordinance codified in this Article.

B. Subsection R101.1 of the California Residential Code is hereby amended to read as follows:

R101.1 Title.

These regulations shall be known as the Residential Code for One- and Twofamily Dwellings of the Town of Portola Valley, hereinafter referred to as “this code”.

C. Subsection R105.2 of the California Residential Code is hereby amended to read as follows:

R105.2 Work exempt from permit.

1. Other than storm shelters, one-story detached accessory structures, provided the floor area does not exceed 120 square feet (11.15 m2). It is permissible that these structures still be regulated by Part 7 California Wildland-Urban Interface Code, despite exemption from permit.

2. Retaining walls that are not over four feet (1219 mm) in height measured from the bottom of the footing to the top of the wall, unless supporting a surcharge .

3. Water tanks supported directly upon grade if the capacity does not exceed 5,000 gallons (18 927 L) and the ratio of height to diameter or width does not exceed 2:1.

4. Platforms and walks, not more than 30 inches above grade and not over any basement or story below.

5. Painting, papering, tiling, carpeting, cabinets, counter tops and similar finish work.

6. Window awnings supported by an exterior wall that do not project more than 54 inches (1372 mm) from the exterior wall and do not require additional support.

7. Prefabricated swimming pools that are less than 24 inches (210 mm) deep.

Swings, temporary sports devices, and other playground equipment accessory to detached one- and two-family dwellings.

8. Decks not exceeding 200 square feet (18.58 m2) in area, that are not more than 30 inches (762 mm) above grade at any point, are not attached to a dwelling or 43 11
townhouse and do not serve the exit door required by Section 318.4.

Electrical:

1. Listed cord-and-plug connected temporary decorative lighting.

2. Reinstallation of attachment plug receptables but not the outlets therefor.

3. Replacement of branch circuit overcurrent devices of the required capacity in the same location.

4. Electrical wiring, devices, appliances, apparatus or equipment operating at less than 25 volts and not capable of supplying more than 50 watts of energy.

5. Minor repair work, including the replacement of lamps or the connection of approved portable electrical equipment to approved permanently installed receptacles.

Gas:

1. Portable heating, cooking or clothes drying appliances.

2. Replacement of any minor part that does not alter approval of equipment or make such equipment unsafe.

3. Portable-fuel-cell appliances that are not connected to a fixed piping system and are not interconnected to a power grid.

Mechanical:

1. Portable heating appliances.

2. Portable ventilation appliances.

3. Portable cooling units.

4. Steam, hot- or chilled-water piping within any heating or cooling equipment regulated by this code.

5. Replacement of any minor part that does not alter approval of equipment or make such equipment unsafe.

6. Portable evaporative coolers.

7. Self-contained refrigeration systems containing 10 pounds (4.54 kg) or less of refrigerant or that are actuated by motors of 1 horsepower (746 W) or less.

8. Portable-fuel-cell appliances that are not connected to a fixed piping system and are not interconnected to a power gride.

Plumbing:

1. The stopping of leaks in drains, water, soil, waste or vent pipe; provided, however, that if any concealed trap, drainpipe, water, soil, waste or vent pipe becomes defective and it becomes necessary to remove and replace the same with new material, such work shall be considered as new work and a permit shall be 44 12
obtained and inspection made as provided in this code.

2. The clearing of stoppages or the repairing of leaks in pipes, valves or fixtures, and the removal and reinstallation of water closets, provided such repairs do not involve or require the replacement or rearrangement of valves, pipes or fixtures.

D. Subsection R108.5 of the California Residential Code is hereby amended to read as follows:

R108.5 Refunds.

The Building Official may authorize refunding of:

1. Any fee paid hereunder, which was erroneously paid or collected.

2. Not more than 80 percent of the permit fee paid when no work has been done under a permit issued in accordance with this code.

3. Not more than 80 percent of the plan review fee paid when an application for a permit for which a plan review fee has been paid is withdrawn or cancelled before any plan reviewing is done.

The Building Official shall not authorize refunding of any fee paid except on written application filed by the original permittee not later than 180 days after the date of the fee payment.

E. Subsection R110.3 of the California Residential Code is hereby amended to read as follows:

R110.3 Temporary occupancy.

B. The town's building official may at their sole discretion issue a temporary occupancy permit for the use of a portion or portions of a building if, and only 45 13
if, the applicant provides a surety deposit in the form of a letter of credit from a savings institution and made payable to the town of Portola Valley or a cashier's check in the amount of ten thousand dollars.

The applicant must show cause and present a schedule to the town's building official within ten days of the expiration of the temporary occupancy permit or no extension or reinstatement of the temporary occupancy permit will be allowed. The town's building official shall have sole discretion whether to revoke or extend the temporary occupancy permit in light of the evidence concerning the failure to complete the project. The town's building official shall have sole discretion as whether or not the revised
46 14
scheduled is acceptable. Within ten days of the applicant presenting evidence and a revised schedule, the town's building official shall either extend or revoke the temporary occupancy permit.

F. Subsection R112.1 of the California Residential Code is hereby amended to read as follows:

R112.1 General.

G. Subsection R113.4 of the California Residential Code is hereby amended to read as follows:

R113.4 Violation penalties.

Any person who commences any work for which a permit is required, such as, but not limited to: grading, demolition, or on a building, structure, electrical, gas, mechanical, fire protection or plumbing system before obtaining the necessary permits shall be subject to a fee established by fee resolution that shall be in addition to the required permit fees.

Double Building Permit Fees will apply at a minimum of $500.00 plus $500.00 fine may be added for each violation (type of construction) where a building permit should have been issued.

H. Subsection R301.2 of the California Residential Code is hereby amended to read as follows:

R301.2 Climatic and geographic design criteria.

Buildings shall be constructed in accordance with the provisions of this code as limited by the provisions of this section. Additional criteria shall be established by the local jurisdiction and set forth in Table R301.2.
47 15

CLIMATIC AND GEOGRAPHIC DESIGN CRITERIA
GROUND
SNOW
LOAD

WIND DESIGN SEISMIC
DESIGN Speed CATEGORYf d (mph) Topographic
effectsk
Special wind
regionl
Wind-borne
debris zonem
No 91 -102 (Risk
category
dependent)
No No No D-E

SUBJECT TO DAMAGE FROM ICE

BARRIER
UNDERLAYMENT
REQUIREDh
FLOOD
HAZARDSg
AIR

FREEZING
INDEXi
MEAN
ANNUAL Weathering TEMPj a
Frost
line
depthb
Termitec
No No No No PV Muni
Code
Section

18.32 NA 58.55
For SI: 1 pound per square foot = 0.0479 kPa, 1 mile per hour = 0.447 m/s. a. Weathering may require a higher strength concrete or grade of masonry than necessary to satisfy the structural requirements of this code. The weathering column shall be filled in with the weathering index, "negligible," "moderate" or "severe" for concrete as determined from Figure R301.2(3). The grade of masonry units shall be determined from ASTM C34, C55, C62, C73, C90, C129, C145, 0216 or C652. b. The frost line depth may require deeper footings than indicated in Figure R403.1(1).

The jurisdiction shall fill in the frost line depth column with the minimum depth of footing below finish grade.
c. The jurisdiction shall fill in this part of the table to indicate the need for protection depending on whether there has been a history of local subterranean termite damage. d. The jurisdiction shall fill in this part of the table with the wind speed from the basic wind speed map [Figure R301.2(4)A]. Wind exposure category shall be determined on a sitespecific basis in accordance with Section R301.2.1.4. e. Temperatures shall be permitted to reflect local climates or local weather experience as determined by the building official.
f. The jurisdiction shall fill in this part of the table with the seismic design category determined from Section R301.2.2.1.
g. The jurisdiction shall fill in this part of the table with (a) the date of the jurisdiction’s entry into the National Flood Insurance Program (date of adoption of the first code or 48 16
ordinance for management of flood hazard areas), (b) the date(s) of the Flood Insurance Study and (c) the panel numbers and dates of the currently effective F1RMs and FBFMs or other flood hazard map adopted by the authority having jurisdiction, as amended. h. In accordance with Sections R905.1.2, R905.4.3.1, 8905.5.3.1, R905.6.3.1, R905.7.3.1 and R905.8.3.1, where there has been a history of local damage from the effects of ice damming, the jurisdiction shall fill in this part of the table with "YES." Otherwise, the jurisdiction shall fill in this part of the table with "NO." i. The jurisdiction shall fill in this part of the table with the 100-year return period air freezing index (BF-days) from Figure R403.3(2) or from the 100-year (99 percent) value on the National Climatic Data Center data table "Air Freezing Index-USA Method (Base 32°F)."
j. The jurisdiction shall fill in this part of the table with the mean annual temperature from the National Climatic Data Center data table "Air Freezing Index-USA Method (Base 32°F)."
k. In accordance with Section R301.2.1.5, where there is local historical data documenting structural damage to buildings due to topographic wind speed-up effects, the jurisdiction shall fill in this part of the table with "YES." Otherwise, the jurisdiction shall indicate "NO" in this part of the table.
l. In accordance with Figure R301.2(4)A, where there is local historical data documenting unusual wind conditions, the jurisdiction shall fill in this part of the table with "YES" and identify any specific requirements, Otherwise, the jurisdiction shall indicate "NO" in this part of the table.
m. In accordance with Section R301.2.1.2.1. the jurisdiction shall indicate the wind-borne debris wind zone(s). Otherwise, the jurisdiction shall indicate "NO" in this part of the table. n. The jurisdiction shall fill in these sections of the table to establish the design criteria using Table 1a or 1b from ACCA Manual J or established criteria determined by the jurisdiction.
o. The jurisdiction shall fill in this section of the allowable stress design table using the Ground Snow Loads in Figure R301.2(3).

I. Subsection R309.1 of the California Residential Code is hereby amended to read as follows:

R309.1 Townhouse automatic fire sprinkler systems.

An automatic fire sprinkler system shall be installed in townhouses.

Exception: An automatic residential fire sprinkler system shall not be 49 17
required where repairs, additions or alterations are made to existing townhouses that do not have automatic residential fire sprinkler systems installed when building permit(s) have been issued within any 12-month period that do not collectively exceed more than 50 percent of the existing floor area, 50 percent of the existing wall area or 50 percent of the combination of affected floor area and affected wall area percentages. In calculating these percentages, the following guidelines shall apply:
a. Calculation of Percentage of Affected Floor Area (PFA):

The floor area of any addition, all rooms affected by any addition, and the floor area of all rooms affected by structural changes made in the building, such as walls, columns, beams or girders, floor or ceiling joists and coverings, roof rafters, roof diaphragms, footings, piles or retaining walls or similar components, shall be included in computing the floor areas for applying this section.
b. Calculation of Percentage of Affected Wall Area (PWA):

The calculated wall area affected shall include all interior and exterior walls where no studs are proposed to be remain or if some studs remain and/or if the surface of both sides of the studs are proposed to be removed such that one can see
through the wall.
c. Calculation of Combination of Percentage of Affected Floor Area (PFA) and Wall Area (PWA): The combination of the percentage of affected floor as described above plus the percentage of wall area as described above (PFA + PWA < 51%).

J. Subsection R309.1.1 of the California Residential Code is hereby amended to read as follows:

R3091.1 Design and Installation.

Automatic residential fire sprinkler systems for townhouses shall be designed and installed in accordance with section R313 or NFPA 13D.

K. Subsection R309.2 of the California Residential Code is hereby amended to read as follows:

R309.2 One and two-family dwelling automatic fire sprinkler systems.

An automatic fire sprinkler system shall be installed in one and two-family dwellings. 50 18
Exceptions:

1. An automatic residential fire sprinkler system shall not be required where repairs, alterations, additions and additions that include alterations to existing buildings for which building permit(s) have been issued within any 12-month period that do not collectively exceed more than 50 percent of the existing floor area, 50 percent of the existing wall area or 50 percent of the combination of affected floor area and affected wall area percentages. In calculating these percentages, the following guidelines shall apply:
a. Calculation of Percentage of Affected Floor Area (PFA):

The calculated wall area affected shall include all interior and exterior walls where no studs are proposed to be remain or if some studs remain and/or if the surface of both sides of the studs are proposed to be removed such that one can
see through the wall.
c. Calculation of Combination of Percentage of Affected Floor Area (PFA) and Wall Area (PWA): The combination
of the percentage of affected floor as described above plus the percentage of wall area as described above (PFA +
PWA > 50%).

2. Residential fire sprinkler system shall not be required for an accessory dwelling unit, if all the following are met:

2.1The unit meets the definition of an Accessory Dwelling Unit as defined in the Government Code section 65852.2

2.2The existing primary residence does not have automatic fire sprinklers.

2.3The accessory detached dwelling unit does not exceed 1200 square feet in size and is located in compliance with the setbacks of the base zoning district at required by the Portola Valley Municipal Code

2.4 The unit is on the same lot as the primary residence.

L. Subsection R309.2.1 of the California Residential Code is hereby amended to 51 19
read as follows:

R309.2.1 Design and Installation.

Automatic residential fire sprinkler systems shall be designed and installed in accordance with section R309 or NFPA 13D.

M. Subsection R319.1 of the California Residential Code is hereby amended to read as follows:

R319.1 Emergency escape and rescue opening required.

Basements, habitable attics, the room to which a sleeping loft is open, and every sleeping room shall have not less than one operable emergency escape and rescue opening.

Where basements contain one or more sleeping rooms, an emergency escape and rescue opening shall be required in each sleeping room. Emergency escape and rescue openings shall open directly into a public way.

Exceptions:

1. Basements with a ceiling height of less than 80 inches (2032 mm) shall not be required to have emergency escape and rescue openings.

2. Emergency escape and rescue openings are not required from basements or sleeping rooms that have an exit door or exit access door that opens directly into a public way or to a yard, court or exterior egress balcony that opens to a public way.

3. Basements without habitable spaces and having not more than 200 square feet (18.6 m2) in floor area shall not be required to have emergency escape and rescue openings.

4. Storm shelters are not required to comply with this section where the shelter is constructed in accordance with ICC 500.

N. Subsection R319.7 of the California Residential Code is hereby amended to read as follows:

R319.7 Alterations or repairs of existing basement.

New sleeping rooms created in an existing basement shall be provided with emergency escape and rescue opening in accordance with Section 319.1. Other than new sleeping rooms, where existing habitable basements undergo alteration or repairs, an emergency escape and rescue opening is not required.

O. Subsection R319.7.1 of the California Residential Code is hereby deleted. 52 20
P. Subsection R330.1 of the California Residential Code is hereby amended to read as follows:

R330.1 General.

Energy storage systems (ESS) shall comply with the provisions of this section.

Exceptions:

1. ESS less than 1 kWh (3.6 megajoules)
Q. Table R602.10.3(3) of subsection R602.10.3 of the California Residential Code is hereby amended as follows:

The title of Table R602.10.3(3) is amended to read:

TABLE R602.10.3(3)i, j Bracing Requirements Based On Seismic Design Category Footnotes are added as follows:

Footnotes “i” and “j” are added to Table R602.10.3(3), to read:
i. Methods PBS, HPS, SFB and CS-SFB are not permitted in Seismic Design Categories D0, D1, and D2.
j. Methods GB, DWB and PCP are not permitted in Seismic Design Categories D0, D1, and D2 where S1 is greater than or equal to 0.75.

R. Subsection R902.1 of the California Residential Code is hereby amended to read as follows:

R902.1 Roof covering materials.

Roofs shall be covered with materials as set forth in sections 904 and 905. A minimum Class A roofing shall be installed. Class A roofing is required by this section to be listed shall be tested in accordance with UL 790 or ASTM E 108. Wood roof coverings are prohibited.

S. Subsection R902.1.1 of the California Residential Code is hereby amended as follows:

R902.1.1 Roof coverings within fire hazard severity zones or in Wildland-Urban Interface (WUI) areas.

The entire roof covering of every existing structure where more than 25 percent of the total roof area is replaced within any one-year period; where the addition of new roof area exceeds 25 percent of the existing roof area; the entire roof covering of every new building; 53 21
and any roof covering applied in the alteration, repair or replacement of the roof of every existing structure, shall also comply with Part 7, California Wildland-Urban Interface Code.

T. Subsection R902.1.2 of the California Residential Code is hereby amended as follows:

R902.1.2 Roof coverings in all other areas.

The entire roof covering of every existing structure where more than 25 percent of the total roof area is replaced within any one-year period; where the addition of new roof area exceeds 25 percent of the existing roof area; the entire roof covering of every new building; and any roof covering applied in the alteration, repair or replacement of the roof of every existing structure, shall also comply with Part 7, California Wildland-Urban Interface Code..

U. Subsection R902.2 of the California Residential Code is hereby deleted in its entirety.

SECTION 6: ADOPTION OF ELECTRICAL CODE. Section 15.04.040 [Adoption of the California Electrical Code] of Chapter 15.04 [Building Code] of Title 15 [Buildings and Construction] of the Town of Portola Valley Municipal Code is hereby adopted to read as follows:

15.04.040 Adoption of the California Electrical Code
The 2025 California Electrical Code, Title 24, Part 3, referred to throughout this Chapter as the "Electrical Code," is hereby adopted and made a part hereof, the same as if fully set forth in this Article, and shall be the Electrical Code of the Town.

SECTION7: ADOPTION OF MECHANICAL CODE. Section 15.04.050 [Amendments to the California Mechanical Code] of Chapter 15.04 [Building Code] of Title 15 [Buildings and Construction] of the Town of Portola Valley Municipal Code is hereby adopted to read as follows:

15.04.050 Adoption of the California Mechanical Code
The 2025 California Mechanical Code, Title 24, Part 4, referred to throughout this Chapter as the "Mechanical Code," is hereby adopted and made a part hereof, the same as if fully set forth in this Article, and shall be the Mechanical Code of the Town.

SECTION 8: ADOPTION OF AND AMENDMENT TO PLUMBING CODE. Section 54 22

15.04.060 [Adoption and amendment of the California Plumbing Code] of Chapter 15.04 [Building Code] of Title 15 [Buildings and Construction] of the Town of Portola Valley Municipal Code is hereby adopted to read as follows:

15.04.060 Adoption of and Amendment of the California Plumbing Code A. The 2025 California Plumbing Code, Title 24, Part 5, referred to throughout this Chapter as the "Plumbing Code," is hereby adopted and, except as to additions, deletions and amendments hereinafter described, made a part hereof, the same as if fully set forth in this Article, and shall be the Plumbing Code of the Town. In accordance with California Health and Safety Code Section 17958.7, express findings that modifications to the Plumbing Code are reasonably necessary because of local climatic, geological, or topographical conditions are either already on file with the California Building Standards Commission or will be filed prior to the effective date of the ordinance codified in this Article.

B. Subsection 1211.8 Earthquake Actuated Gas Shutoff Valves, of the California Plumbing Code is hereby adopted.

SECTION 9: ADOPTION OF ENERGY CODE. Section 15.04.070 [Adoption of the California Energy Code] of Chapter 15.04 [Building Code] of Title 15 [Buildings and Construction] of the Town of Portola Valley Municipal Code is hereby adopted to read as follows:

15.04.070 Adoption of the California Energy Code
The 2025 California Energy Code, Title 24, Part 6, referred to throughout this Chapter as the "Energy Code," is hereby adopted and made a part hereof, the same as if fully set forth in this Article, and shall be the Energy Code of the Town.

SECTION 10: ADOPTION OF HISTORICAL BUILDING CODE. Section 15.04.080 [Adoption of the California Historical Building Code] of Chapter 15.04 [Building Code] of Title 15 [Buildings and Construction] of the Town of Portola Valley Municipal Code is hereby adopted to read as follows:

15.04.080 Adoption of the California Historical Building Code The 2025 California Historical Building Code, Title 24, Part 8, referred to throughout this Chapter as the "Historical Building Code," is hereby adopted and made a part hereof, the same as if fully set forth in this Article, and shall be the Historical Building Code of the Town.

SECTION 11: ADOPTION OF FIRE CODE. Section 15.04.090 [Adoption of the California 55 23
Fire Code] of Chapter 15.04 [Building Code] of Title 15 [Buildings and Construction] of the Town of Portola Valley Municipal Code is hereby adopted to read as follows:

15.04.090 Adoption of the California Fire Code
The 2025 California Fire Code, Title 24, Part 9, referred to throughout this Chapter as the "Fire Code," is hereby adopted and made a part hereof, the same as if fully set forth in this Article, and shall be the Fire Code of the Town.

SECTION 12: ADOPTION OF EXISTING BUILDING CODE. Section 15.04.100 [Adoption of the California Existing Building Code] of Chapter 15.04 [Building Code] of Title 15 [Buildings and Construction] of the Town of Portola Valley Municipal Code is hereby adopted to read as follows:

15.04.100 Adoption of the California Existing Building Code The 2025 California Existing Building Code, Title 24, Part 10, referred to throughout this Chapter as the "Existing Building Code," is hereby adopted and made a part hereof, the same as if fully set forth in this Article, and shall be the Existing Building Code of the Town.

SECTION 13: ADOPTION OF AND AMENDMENT TO GREEN BUILDING STANDARDS CODE. Section 15.04.110 [Adoption and Amendments to the California Green Building Standards Code] of Chapter 15.04 [Building Code] of Title 15 [Buildings and Construction] of the Town of Portola Valley Municipal Code is hereby adopted to read as follows:

15.04.110 Adoption of and Amendment to the California Green Building Standards Code
A. The 2025 California Green Building Standards Code, Title 24, Part 11, referred to throughout this Chapter as the "Green Building Standards Code," is hereby adopted and, except as to additions, deletions and amendments hereinafter described, made a part hereof, the same as if fully set forth in this Article, and shall be the Green Building Standards Code of the Town. In accordance with California Health and Safety Code Section 17958.7, express findings that modifications to the Green Building Standards Code are reasonably necessary because of local climatic, geological, or topographical conditions are either already on file with the California Building Standards Commission or will be filed prior to the effective date of the ordinance codified in this Article.

B. Subsection 102.3.1 of the California Green Building Standards Code is hereby added to read as follows:
102.3.1 Third party verification.

Third party verification of compliance for applicable building measures of this code is required and shall be provided by a Green Building Specialist as defined in chapter 2 of this code.
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C. Section 202 of the California Green Building Standards Code is hereby amended to add the following definitions:

APPLIED WATER TURF CALCULATOR: An applied water turf calculator is a tool that uses data and methodology from the California Department of Water Resources to estimate the irrigation water requirements for turf minus any water supplied by effective rainfall and effective ground water seepage. The calculator uses the evapotranspiration of applied water (ETaw) for cool-season and warm-season turf that was calculated based on a six-year period of climate data specific to a 4x4 km grid spacing within the town.

GREEN BUILDING SPECIALIST: A green building specialist is a person that is LEED certified for the building type, trained through Build It Green as a certified green building professional, or similar qualifications as approved by the planning director or their designee.

RAINWATER CATCHMENT SYSTEM: Rainwater catchment system means the collected precipitation from rooftops and other above-ground impervious surfaces that is stored in catchment tanks for later use.

TURF: Turf means a ground cover surface of mowed grass. All of the following qualify as turf: annual bluegrass, Kentucky bluegrass, Perennial ryegrass, Red fescue, and tall fescue (cool-season grasses). Bermuda grass, Kikuyu grass, Seashore Paspalum, St.

Agustine grass, Zoysia grass, and Buffalo (warm-season grasses).

D. Section 202 of the California Green Building Standards Code is hereby amended to incorporate the following amendment to the term below:

NEWLY CONSTRUCTED (or NEW CONSTRUCTION). A newly constructed building (or new construction) does not include additions, alterations or repairs. For the purposes of this code, additions, alterations and additions that include alterations to existing low- rise residential buildings for which building permit(s) have been issued within any 12- month period that collectively exceeds more than 50 percent of the existing floor area, 50 percent of the existing wall area or when the combination of the percentages of affected floor area and affected wall area exceeds 50 percent are treated as newly constructed (or new construction). In calculating these percentages, the following guidelines shall apply:
(1) Calculation of Percentage of Affected Floor Area (PFA): The floor area of any addition, all rooms affected by any addition, and the floor area of all rooms affected by structural changes made in the building, such as walls, columns, beams or girders, floor or ceiling joists and coverings, roof rafters, roof diaphragms, footings, piles or retaining walls or similar components, shall be included in computing the floor areas for applying this section. (2) Calculation of Percentage of Affected Wall Area (PWA): The calculated wall area affected shall include all interior and exterior 57 25
walls where no studs are proposed to be remain or if some studs remain and/or if the surface of both sides of the studs are proposed to be removed such that one can see through the wall. (3) Calculation of Combination of Percentage of Affected Floor Area (PFA) and Wall Area (PWA): The combination of the
percentage of affected floor as described above plus the percentage of wall area as described above (PFA + PWA > 50%).

E. Subsection 301.1.1 of the California Green Building Standards Code is hereby amended to read as follows:
301.1.1 Additions and alterations.
[HCD] the mandatory provisions of Chapter 4 shall be applied to additions and alterations of existing residential buildings where the addition or alteration increases the building’s conditioned area, volume or size. The requirements shall apply only to and/or within the specific area of the addition or alterations.

The mandatory provisions of Section 4.106.4.2 may apply to additions or alterations of existing parking facilities or the addition of new parking facilities serving existing multifamily buildings. See Section 4.106.4.3 for application.

NOTE: Repairs including, but not limited to, resurfacing, restriping, and repairing or maintaining existing lighting fixtures are not considered alterations for the purposes of this section.

Exception:

All residential construction additions, alterations, repairs, and/or accessory dwelling unit conversions that include the
replacement/upgrade to the main electric panel shall comply with Section 4.106.5.

F. Section 4.106.5 of the California Green Building Standards Code is hereby added to read as follows:

4.106.5 Residential additions, alterations and accessory dwelling unit conversions.

All residential construction additions, alterations, repairs, and/or accessory dwelling unit conversions that do not meet the definition of newly constructed that include the replacement/upgrade to the main electric panel shall comply with the following:

1. The replacement/upgrade to the main electric panel shall have:
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a. The electrical capacity for and reservation of breaker space in the panel to accommodate the existing single-family
electrical load and the future electrification of:
• An electric stove and oven if the current stove and/or oven are gas:
• An electric clothes dryer if the current clothes dryer is gas;
• One level 2 electric vehicle charging equipment (EVCE); • Photovoltaic panels (PV); and
• For a 240-volt circuit capable of providing electricity to operate a HPWH of comparable size to the existing gas
fired water heater but a minimum of 30 amps per water
heater.
b. All reserved breaker spaces shall be permanently marked as “For Future EVCE, PV and HPWH use”.
c. A dedicated 240-volt branch circuit shall be installed within three (3) feet from the existing water heater location and shall be rated at 30 amps minimum. Both ends of the unused conductor shall be labeled with the word “spare”, be
identified as 240 V ready.

G. Section 4.304.2 of the California Green Building Standards Code is hereby added to read as follows:

4.304.2 Reduction of potable water use on turf.

For all projects with landscapes that include the use of turf, install rainwater catchment system. Irrigation needs of turf should be calculated using the Applied Water for Turf Calculator. All rainwater catchment systems must be installed in compliance with California Plumbing Code in effect at the time of Building permit application.

1. Rainwater Catchment System Size. The rainwater catchment system size shall be determined by using the Applied Water for Turf Calculator. The rainwater catchment system will need to be sized in order to satisfy 50 percent of the estimated annual water demands for the first 500 square feet of turf installed on the project. The rainwater catchment system will need to be sized in order to satisfy 100 percent of the estimated annual water demands for installed turf that is greater than 500 square feet.

2. Alternative. A fully installed graywater system connected to an irrigation system that can satisfy all of the annual water demands of turf as identified in the Applied Water for Turf Calculator can be used as an alternative to installing a rainwater catchment system.

H. Section 4.305 of the California Green Building Standards Code is hereby 59 27
amended to read as follows:

4.305 Graywater “Ready” Infrastructure [LR].

Install graywater “ready” systems as outlined below. Additional plumbing piping is installed to permit the discharge from all clothes washers and all applicable fixtures from bathrooms located above grade to allow for future installation of a distributed irrigation system, either subsurface or treated. All graywater “ready” systems must be installed in compliance with the California Plumbing Code in effect at the time of Building permit application.

1. Identify an appropriate location for possible future installation of a graywater treatment system, including storage tanks.

2. Include either a separate multiple pipe outlet or a diverter valve and an outside “stub-out” installation on clothes washing machine hook-ups, to allow separate discharge of graywater direct for irrigation.

3. Include a building drain(s) for lavatories, showers, and bathtubs, segregated from drains for all other plumbing fixtures, connected to the black water pipe a minimum of three (3) feet from the building foundation.

4. Provide power supply for future graywater treatment system.

5. The graywater system shall be comprised of purple piping. The diverter valve on the clothes washing machine system shall be labeled as “LAUNDRY-TOLANDSCAPE CAPABLE.” Exception:

Accessory dwelling units that include laundry connections shall only be required to include a diverter valve and an outside “stub-out” installation on the clothes washing machine hook-up, to allow separate discharge of graywater direct for irrigation. The diverter valve on the clothes washing machine system shall be labeled as “LAUNDRY-TOLANDSCAPE CAPABLE.” I. Section A4.204.1 of the California Green Building Standards Code is adopted as mandatory and amended to read as follows:

A4.204.1 Energy Efficiency. Alterations to existing residential buildings shall comply with Section A4.204.1.1.

A4.204.1.1 Altered Space-Conditioning System Serving Existing Single-Family Dwelling Units – Mechanical Cooling. When a space-conditioning system serving an existing single-family dwelling unit is altered in climate zones 1 through 14 and 16 by installation or replacement of an air conditioner, the altered system shall comply with either a, b, or c below in addition to the requirements for installation specified by Title 24, Part 6, Sections 150.2(b)1E and 150.2(b)1F:
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a. A heat pump shall be the primary heating source and sized according to the system selection requirements specified by Title 24, Part 6 of Section 150.0(h)5.

Supplemental heating may be provided by gas furnace or electric resistance heating as specified in Title 24, Part 6, Sections 150.0(h)7 and 150.0(i); or b. An air conditioner shall meet all the requirements in either subsection I or II below:

I. Systems with Existing Duct Distribution Systems:

A. The duct system measured air leakage shall be equal to or less than 10 percent of the system air handler airflow as confirmed through field verification and diagnostic testing, per the requirements in Title 24, Part 6, Reference Residential Appendix Section RA3.1.4.3.1; and
Exception 1 to A4.204.1.1bIA. If it is not possible to meet the duct sealing requirements, all accessible leaks shall be sealed and verified through a visual inspection and a smoke test by a certified ECC-Rater utilizing the methods specified in Reference Residential Appendix Section RA3.1.4.3.5.

Exception 2 to A4.204.1.1bIA: Existing duct systems, constructed, insulated or sealed with asbestos.

B. Demonstrate, in every control mode, airflow greater than or equal to 300 CFM per ton of nominal cooling capacity through the return grilles, and an airhandling unit fan efficacy less than or equal to 0.45 W/CFM. The airflow rate and fan efficacy requirements in this section shall be confirmed through field verification and diagnostic testing, following the procedures outlined in Title 24, Part 6, Reference Residential Appendix RA3.3; and
Exception 1 to A4.204.1.1bIB: Systems unable to comply with the minimum airflow rate and system efficacy requirements shall demonstrate compliance by satisfying all of the following:

1. Following the procedures in Section RA3.3.3.1.5;

2. Installing a system thermostat that conforms to the specifications in Section 110.12;

3. For standard ducted systems (without zoning dampers), meet the applicable minimum total return filter grille nominal area requirements in Table 150.0-B or 150.0-C as confirmed by field verification and diagnostic testing in accordance with the procedures in Reference Residential Appendix Sections RA3.1.4.4 and RA3.1.4.5. The design clean-filter pressure drop requirements specified by Section 150.0(m)12D for the system air filter(s) shall conform to the requirements given in Tables 150.0- B and 150.0-C.

Exception 2 to Section A4.204.1.1bIB: Multispeed compressor systems or variable speed compressor systems shall verify air flow (cfm/ton) and fan efficacy (Watt/cfm) for system operation at the maximum compressor speed and the maximum air handler fan speed.

Exception 3 to Section A4.204.1.1bIB: Gas furnace air-handling units manufactured prior to July 3, 2019 shall comply with a fan efficacy value less than or equal to 0.58 W/cfm as confirmed by field verification and diagnostic testing in accordance with the procedures given in Reference Residential 61 29
Appendix RA3.3.

C. In all climate zones, refrigerant charge verification requirements shall meet the requirements in Title 24, Part 6 Section 150.2(b)1Fiib, including the minimum airflow rate specified in Section 150.2(b)1Fiia; and
D. Vented attics shall have insulation installed to achieve a U-factor of 0.020 or insulation installed at the ceiling level shall result in an insulated thermal resistance of R-49 or greater for the insulation alone; luminaires not rated for insulation contact must be replaced or retrofitted with a fireproof cover that allows for insulation to be installed directly over the cover; and Exception 1 to Section A4.204.1.1(b)ID: Dwelling units with at least R-38 existing insulation installed at the ceiling level.

Exception 2 to Section A4.204.1.1(b)ID: Dwelling units where the alteration would directly cause the disturbance of asbestos unless the alteration is made in conjunction with asbestos abatement.

Exception 3 to Section A4.204.1.1(b)ID: Dwelling units with knob and tube wiring located in the vented attic.

Exception 4 to Section A4.204.1.1(b)ID: Where the accessible space in the attic is not large enough to accommodate the required R-value, the entire accessible space shall be filled with insulation provided such installation does not violate Section 806.3 of Title 24, Part 2.5.

E. Air seal all accessible areas of the ceiling plane between the attic and the conditioned space including all joints, penetrations and other openings that are potential sources of air leakage by caulking, gasketing, weather-stripping or otherwise sealing to limit infiltration and exfiltration.

Exception 1 to Section A4.204.1.1bIE: Dwelling units with at least R-38 existing insulation installed at the ceiling level.

Exception 2 to Section A4.204.1.1 bIE: Dwelling units where the alteration would directly cause the disturbance of asbestos unless the alteration is made in conjunction with asbestos abatement.

Exception 3 to Section A4.204.1.1bIE: Dwelling units with atmospherically vented space heating or water heating combustion appliances located inside the pressure boundary of the dwelling unit.

II. Entirely New or Complete Replacement Duct Systems:

A. R-8 duct insulation shall be installed for all new ducts located in unconditioned space; and
B. The total duct system measured air leakage shall be equal to or less than 5 percent of the system air handler airflow as confirmed through field verification and diagnostic testing, per the requirements in Title 24, Part 6, Reference Residential Appendix Section RA3.1.4.3.1; and C. Demonstrate, in every control mode, airflow greater than or equal to 350 CFM per ton of nominal cooling capacity through the return grilles, and an airhandling unit fan efficacy less than or equal to 0.35 W/CFM. The airflow rate and fan efficacy requirements in this section shall be confirmed through field verification and diagnostic testing, following the procedures outlined in Title 24, Part 6, Reference Residential Appendix RA3.3; and
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D. In all climate zones, refrigerant charge verification requirements shall meet the requirements in Title 24, Part 6 Section 150.2(b)1Fiib; and E. In Climate Zones 1-4, 6, and 8-16 if the air handler and ducts are located within a vented attic, vented attics shall have insulation installed to achieve a U-factor of 0.020 or insulation installed at the ceiling level shall result in an insulated thermal resistance of R-49 or greater for the insulation alone; luminaires not rated for insulation contact must be replaced or retrofitted with a fireproof cover that allows for insulation to be installed directly over the cover; and
Exception 1 to Section A4.204.1.1bIIE: In Climate Zones 1, 3, and 6, dwelling units with at least R-19 existing insulation installed at the ceiling level.

Exception 2 to Section A4.204.1.1bIIE: Dwelling units where the alteration would directly cause the disturbance of asbestos unless the alteration is made in conjunction with asbestos abatement.

Exception 3 to Section A4.204.1.1bIIE: Dwelling units with knob and tube wiring located in the vented attic.

Exception 4 to Section A4.204.1.1bIIE: Where the accessible space in the attic is not large enough to accommodate the required R-value, the entire accessible space shall be filled with insulation provided such installation does not violate Section 806.3 of Title 24, Part 2.5.

F. In Climate Zones 2, 4, and 8-16, air seal all accessible areas of the ceiling plane between the attic and the conditioned space including all joints, penetrations and other openings that are potential sources of air leakage by caulking, gasketing, weather-stripping or otherwise sealing to limit infiltration and exfiltration.

Exception 1 to Section A4.204.1.1bIIF: Dwelling units with at least R-19 existing
insulation installed at the ceiling level.

Exception 2 to Section A4.204.1.1bIIF: Dwelling units where the alteration would directly cause the disturbance of asbestos unless the alteration is made in conjunction with asbestos abatement.

Exception 3 to Section A4.204.1.1bIIF: Dwelling units with atmospherically vented space heating or water heating combustion appliances located inside the pressure boundary of the dwelling unit.
c. Performance approach.

The energy budget for alterations is expressed in terms of Long-term System Cost (LSC), and the altered component(s) and any newly installed equipment serving the alteration shall meet the applicable requirements of Subsections A, B, and C below.

A. The altered components shall meet the applicable requirements of Title 24, Part 6, Sections 110.0 through 110.9, Sections 150.0(a) through (l), Sections 150.0(m)1 through 150.0 (m)10, and Sections 150.0(p) through (q). Entirely new or complete replacement mechanical ventilation systems as these terms are used in Section 150.2(b)1L, shall comply with the requirements in Section 150.2(b)1L. Altered mechanical ventilation systems shall comply with the requirements of Section 63 31
150.2(b)1M. Entirely new or complete replacement space-conditioning systems, and entirely new or complete replacement duct systems, as these terms are used in Sections 150.2(b)1C and 150.2(b)1Diia, shall comply with the requirements of Sections 150.0(m)12 and 150.0(m)13.

B. The standard design for an altered component shall be the higher efficiency of existing conditions or the requirements stated in Table A4.204.1.1-A. For components not being altered, the standard design shall be based on the existing conditions. When the third party verification option is specified as a requirement, all components proposed for alteration for which the additional credit is taken, must be verified by a certified ECC-rater.

Table A4.204.1.1-A Standard Design for an Altered Component Altered
Component
Standard Design Without Third
Party Verification of Existing
Conditions Shall be Based On
Standard Design With Third
Party Verification of Existing
Conditions Shall be Based
On
Ceiling
Insulation,
Wall
Insulation,
and Raisedfloor
Insulation
The requirements of Sections
150.0(a), (c), and (d).

The requirements of Section
150.2(b)1J for altered ceilings and for
entirely new or complete replacement
duct systems where the air handler
and ducts are located within a vented
attic.

The requirements of Section
A4.204.1.1b for alterations which
include new or replacement air-cooled
air conditioners.

The existing insulation R-value
Fenestration The requirements of Section
150.1(c)3A.

The existing fenestration Ufactor and
SHGC values as verified.

Window
Film
The requirements of Section
150.1(c)3A.

The existing fenestration in the
alteration shall be based on
TABLE 110.6-A and TABLE
110.6-B.

Doors The U-factor of 0.20. The door area
shall be the door area of the existing
building.

If the proposed U-factor is <

0.20, the standard design shall
be based on the existing Ufactor value as verified.
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Otherwise, the standard design
shall be based on the U-factor
of 0.20. The door area shall be
the door area of the existing
building.

SpaceHeating and
SpaceCooling
Equipment
Table 150.1-A for equipment efficiency
requirements;
Section 150.2(b)1C for entirely new or
complete replacement systems;
Section 150.2(b)1F for refrigerant
charge verification, airflow, and fan
efficacy requirements.

Section A4.204.1.1b for new or
replacement air-cooled air conditioners
The existing efficiency levels.

Air
Distribution
System –
Duct
Sealing
The requirements of Sections
150.2(b)1D and 150.2(b)1E
The requirements of Sections
150.2(b)1D and 150.2(b)1E
Air
Distribution
System –
Duct
Insulation
The proposed efficiency levels.

The requirements of Sections
150.2(b)1D, and for new or
replacement air-cooled air
conditioners, Section A4.204.1.1b.

The existing efficiency levels.

Water
Heating
Systems
The requirements of Section
150.2(b)1Hii
The existing efficiency level.

Roofing
Products
The requirements of Section
150.2(b)1I.

The requirements of Section
150.2(b)1I
All Other
Measures
The proposed efficiency levels. The existing efficiency levels.

C. The proposed design shall be based on the actual values of the altered components.

Exception 1 to Section A4.204.1.1: Where the capacity of the existing main electrical service panel is insufficient to supply the electrical capacity of a heat pump and where the existing main electrical service panel is sufficient to supply a new or replacement air conditioner, as calculated according to the requirements of California Electrical Code 65 33
Article 220.83 or Article 220.87. Documentation of electrical load calculations in accordance with Article 220 must be submitted to the enforcement agency prior to permitting for both the heat pump and proposed air conditioner.

Exception 2 to Section A4.204.1.1: Where the required capacity of a heat pump to meet the system selection requirements of Section 150.0(h)5 is greater than or equal to 12,000 Btu/h more than the greater of the required capacity of an air conditioner to meet the design cooling load OR the capacity of the existing air conditioner. Documentation of heating and cooling load calculations in accordance with 150.0(h) must be submitted to the enforcement agency prior to permitting for both the heat pump and proposed air conditioner.

J. Section 101.12 of the California Green Building Standards Code is hereby added to read as follows:
101.12 Hardship or infeasibility exemption.

If an applicant for a covered project believes that circumstances exist that make it a hardship or infeasible to meet the requirements of Subsections 4.106.5 or A4.204.1, the applicant may request an exemption as set forth below. In applying for an exemption, the burden is on the applicant to show hardship or infeasibility.

1. Application. Any request for an exemption must be included at the time of application submittal. The applicant shall indicate the maximum threshold of compliance he or she believes is feasible for the covered project and the circumstances that he or she believes create a hardship or make it infeasible to fully comply with this chapter. Circumstances that constitute hardship or infeasibility include, but are not limited to, the following:
a. There is conflict with the compatibility of the above referenced sections with other town goals, such as those requiring historic preservation; b. There is conflict with the compatibility of the above referenced sections and the California Building Standards Code;
c. There is conflict with the compatibility of the above referenced sections and the town's zoning ordinance and/or architectural review criteria; and/or d. There is a lack of commercially available technologies to comply with the above referenced sections.

2. Review by Architectural and Site Control Commission. For any covered project for which an exemption is requested and architectural and site control review is required, the architectural and site control commission shall provide a recommendation to the planning director or their designee regarding whether the exemption shall be granted, conditionally granted or denied, along with its recommendation on the project. For any project for which an exemption is requested based on the historic character of the building or site, the town historian shall provide a recommendation to the planning director or their designee regarding whether the exemption shall be granted or denied and shall determine whether the project is consistent with the Secretary of the Interior's Standards for Historic Rehabilitation.

3. Decision by Planning Director (or their designee). The planning director or their 66 34
designee shall make a determination based on the information provided. The planning director or his/her designee shall determine the maximum feasible threshold of compliance reasonably achievable for the project. The decision of the planning director or their designee shall be provided to the applicant in writing. a. If the planning director or their designee determines that it is a hardship or is infeasible for the applicant to meet the requirements of this chapter, the request shall be granted. Notwithstanding, the applicant shall be required to comply with this chapter in all other respects and shall be required to achieve, in accordance with this chapter, the threshold of compliance determined to be reasonably achievable by planning director or their designee.
b. If the planning director or their designee determines that it is reasonably possible for the applicant to fully meet the requirements of this chapter, the request shall be denied.

The project and compliance documentation shall be modified to comply with this chapter prior to further review of any pending planning or building application. c. The planning director or their designee’s decision shall be final.

SECTION 14: ADOPTION OF AND AMENDMENT TO WILDLAND-URBAN INTERFACE CODE. Section 15.04.120 [Adoption of and Amendments to the California Wildland-Urban Interface Code] of Chapter 15.04 [Building Code] of Title 15 [Buildings and Construction] of the Town of Portola Valley Municipal Code is hereby adopted to read as follows:

15.04.120 Adoption of and Amendment to the California Wildland-Urban Interface Code
A. The 2025 Wildland-Urban Interface Code, Title 24, Part 7, referred to throughout this Chapter as the "Wildland-Urban Interface Code," is hereby adopted and, except as to additions, deletions and amendments hereinafter described, made a part hereof, the same as if fully set forth in this Article, and shall be the WildlandUrban Interface Code of the Town. In accordance with California Health and Safety Code Section 17958.7, express findings that modifications to the Wildland-Urban Interface Code are reasonably necessary because of local climatic, geological, or topographical conditions are either already on file with the California Building Standards Commission or will be filed prior to the effective date of the ordinance codified in this Article.

B. Section 202 of the California Wildland-Urban Interface Code is hereby amended to read as follows:

NEW BUILDING. For the purposes of this chapter, alterations, additions and additions that include alterations to existing buildings for which building permit(s) have been issued within any 12-month period that collectively exceeds more than 50 percent of the existing floor area, 50 percent of the existing wall area or when the combination of the percentages of affected floor area and affected wall area exceeds 50 percent are treated as new buildings. In calculating these percentages, the following guidelines shall apply:
67 35
a Calculation of Percentage of Affected Floor Area (PFA): The floor area of any addition, all rooms affected by any addition, and the floor area of all rooms affected by structural changes made in the building, such as walls, columns, beams or girders, floor or ceiling joists and coverings, roof rafters, roof diaphragms, footings, piles or retaining walls or similar components, shall be included in computing the floor areas for applying this section.
b Calculation of Percentage of Affected Wall Area (PWA): The calculated wall area affected shall include all interior and exterior walls where no studs are proposed to be remain or if some studs remain and/or if the surface of both sides of the studs are proposed to be removed such that one can see through the wall. c Calculation of Combination of Percentage of Affected Floor Area (PFA) and Wall Area (PWA): The combination of the percentage of affected floor as described above plus the percentage of wall area as described above (PFA + PWA > 50%).

C. Subsection 504.2 of the California Wildland-Urban Interface Code is hereby amended to add the following two exceptions:
504.2 Roof Coverings.

Exceptions:
5 Roof covering replacement that affects 25% or less of the building structure.
6 Cap Sheet is not required when no less than 1 inch of mineral wool or other noncombustible material is located between the roofing material and wood framing or deck.

Alternately, a Class A fire rated roof underlayment, tested in accordance with ASTM E108, shall be permitted to be used. If the sheathing consists of exterior fire-retardant-treated wood, the underlayment shall not be required to comply with a Class A classification. Bird stops shall be used ate the eaves when the profile fits, to prevent debris at the eave. Hip and ridge caps shall be mudded in to prevent intrusion of fire or embers.

D. Subsection 504.5.2 of the California Wildland-Urban Interface Code is hereby amended to add the following two exceptions:
504.5.2 Exterior wall coverings.

Exception:

5. Alterations to existing exterior wall coverings that affect less than 10% of the exterior of the building.

6. Exterior columns supporting roof structures and trellises wrapped with 68 36
noncombustible material. Ignition resistant or combustible veneers over noncombustible material is prohibited.

E. Subsection 507.1 of the California Wildland-Urban Interface Code is hereby amended to read as follows:
507.1 General.

The roof covering on buildings or structures in existence prior to the adoption of this code that are replaced or have 25 percent or more replaced in a 12-month period shall be replaced with a roof covering required for new construction in accordance with Sections 504.2 and 504.2.1. All portions of a roof covering applied during an addition, alteration or repair to an existing structure shall meet at least a Class A fire classification.

SECTION 15: ADOPTION OF REFERENCED STANDARDS CODE. Section 15.04.130 [Adoption of the California Referenced Standards Code] of Chapter 15.04 [Building Code] of Title 15 [Buildings and Construction] of the Town of Portola Valley Municipal Code is hereby adopted to read as follows:

15.04.130 Adoption of the California Referenced Standards Code The 2025 California Referenced Standards Code, Title 24, Part 12, referred to throughout this Chapter as the "Referenced Standards Code," is hereby adopted and made a part hereof, the same as if fully set forth in this Article, and shall be the Referenced Standards Code of the Town.

SECTION 16: ADOPTION OF ADMINISTRATIVE CODE. Section 15.04.140 [Adoption of the California Administrative Code] of Chapter 15.04 [Building Code] of Title 15 [Buildings and Construction] of the Town of Portola Valley Municipal Code is hereby adopted to read as follows:

15.04.140 Adoption of the California Administrative Code The 2025 California Administrative Code, Title 24, Part 1, referred to throughout this Chapter as the "Administrative Code," is hereby adopted and made a part hereof, the same as if fully set forth in this Article, and shall be the Administrative Code of the Town.

SECTION 17. ENVIRONMENTAL REVIEW. Pursuant to the California Environmental Quality Act (“CEQA”), this action is exempt under California Code of Regulations, Title 14, Section 15308 (the modifications are exempt because they assure maintenance, restoration, enhancement, or protection of the environment) and Section 15061(b)(3) (the modifications are exempt because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment).

SECTION 18. SEVERABILITY. If any part of this ordinance is held to be invalid or inapplicable to any situation by a court of competent jurisdiction, such decision shall not 69 37
affect the validity of the remaining portions of this ordinance or the applicability of this ordinance to other situations.

SECTION 19. EFFECTIVE DATE; PUBLICATION. Pursuant to Government Code Section 36937, this ordinance shall take effect thirty days after adoption. The ordinance, or a comprehensive summary thereof, shall be published in a newspaper of general circulation of the Town of Portola Valley within fifteen days after its adoption. 70 38
INTRODUCED: November 12, 2025
PASSED: 2025
AYES:

NOES:

ABSTENTIONS:

ABSENT:

ATTEST:

By:

Mayor
____________________
Town Clerk
71 RESOLUTION NO. 2982-2025

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PORTOLA VALLEY

MAKING FINDINGS OF FACT REGARDING THE NEED FOR THE MODIFICATIONS TO THE PROVISIONS OF THE 2025 CALIFORNIA BUILDING STANDARDS CODE MADE IN

THE PORTOLA VALLEY MUNICIPAL CODE
WHEREAS, California Health and Safety Code Section 18938 makes certain provisions published in the California Building Standards Code pursuant to Health and Safety Code Section 17922 applicable to all occupancies throughout the state and effective one hundred eighty days after publication by the California Building Standards Commission (“Commission”), or at a later date established by the Commission; and WHEREAS, Health and Safety Code Section 17958 permits cities to amend the requirements of the California Building Standards Code in accordance with Health and Safety Code Sections 17958.5 and 17958.7; and
WHEREAS, Health and Safety Code Section 17958.5 permits cities in adopting provisions of the California Building Standards Code to make such modifications in such provisions as the city determines, pursuant to Health and Safety Code Section 17958.7, are reasonably necessary because of local climatic, geological, or topographical conditions; and
WHEREAS, Health and Safety Code Section 17958.7 requires that a city, before making modifications pursuant to Health and Safety Code Section 17958.5, must make an express finding that such modifications are reasonably necessary because of local climatic, geological, or topographical conditions; and
WHEREAS, under Health and Safety Code Section 17958.7, modifications pursuant to Health and Safety Code Section 17958.5 may not become effective until the required findings and the modifications have been filed with the Commission; and WHEREAS, human activities that release greenhouse gases into the atmosphere contribute to the increase of the worldwide average temperature, drought conditions, and duration of fire seasons; and
WHEREAS, according to the California Department of Forestry and Fire Protection, nine of the ten largest wildfires in California history have occurred since 2017, destroying nearly 10,000 structures and burning more than 4.5 million acres; and WHEREAS, the Town of Portola Valley is situated along a wildland-urban interface and as a result is extremely vulnerable to wildfires and firestorms; and WHEREAS, Sections 17958, 17958.5 and 17958.7 of the Health and Safety Code as modified by AB 130 allow local jurisdictions to make changes to state building standards affecting residential units so long as those changes meet one or more conditions; and
72 WHEREAS, one of the conditions added by AB 130 in Sections 17958, 17958.5 and 17958.7 of the Health and Safety Code is that the changes are necessary to implement a local code amendment that is adopted to align with a general plan approved on or before June 10, 2025, and that permits mixed-fuel residential construction consistent with federal law while also incentivizing all-electric construction as part of an adopted greenhouse gas emissions reduction strategy; and WHEREAS, pursuant to Sections 17958, 17958.5 and 17958.7 of the Health and Safety Code as modified by AB 130, the Town’s proposed two-way air conditioning and electric-readiness changes to building standards affecting residential units in the 2025 California Green Building Standards Code are necessary to implement the Town’s local code amendment; and
WHEREAS, pursuant to Sections 17958, 17958.5 and 17958.7 of the Health and Safety Code as modified by AB 130, the Town’s local code amendment is adopted to align with the Town’s General Plan while permitting mixed-fuel residential construction and incentivizing all-electric construction as part of the Town’s adopted greenhouse gas emission reduction strategy stated in its General Plan; and WHEREAS, the Safety Element of the Town’s General Plan, which was adopted in January 2009, includes relevant Town policies with which the Town’s proposed local code amendment align, including Goal 4421: “reduction of greenhouse gas emissions in the air, green building for new and existing structures, . . . protection of the natural environment, and community education and involvement”; the Overarching Goals: “To employ the principles of ‘green’ building” and “To reduce carbon emissions to 1990 levels by the year 2020 and to 80% below 1990 levels by the year 2050”; the Specific Goal 4423: “Existing Building Stock – Encourage the use of energy efficient features and practices and the use of ‘green’ building design standards in remodeling projects”; and WHEREAS, the Town’s adopted greenhouse gas reduction strategy in the Sustainability Element of its General Plan, adopted in 2009, includes the overarching goal of “reduc[ing] carbon emissions to 1990 levels by the year 2020 and to 80% below 1990 levels by the year 2050,” and the specific goal of “encourag[ing] the use of energy efficient features and practices and the use of ‘green’ building design standards in remodeling projects”; and
WHEREAS, consistent with the Town’s adopted greenhouse gas reduction strategy in its 2009 General Plan Sustainability Element, the proposed two-way air conditioning and electric-readiness changes to the 2025 California Green Building Standards Code establish requirements for existing single-family structures which will encourage electrification of existing buildings, thereby reducing greenhouse gas emissions from residential buildings in the Town; and
WHEREAS, consistent with the requirements of AB 130, the proposed two-way air conditioning and electric-readiness changes imposed by this ordinance permit mixedfuel residential construction; and 73 WHEREAS, consistent with the requirements of AB 130, the proposed two-way air conditioning and electric-readiness changes imposed by this ordinance incentivize all-electric construction by encouraging the cost-effective installation of electric space conditioning appliances and reducing barriers to future electrification of various appliances types; and
WHEREAS, the most cost-effective time to improve the energy efficiency and encourage electrification of existing structures is during significant alterations and additions, when electrical infrastructure may be installed alongside other significant improvements; and
WHEREAS, following adoption of this Ordinance, the Town will submit the local amendments to the 2025 California Building Standards Code and required findings to the CBSC for filing, in accordance with Health & Safety Code Section 17958.7(a); and WHEREAS, Public Resources Code section 25402.1(h)(2) and Section 10-106 of the 2025 California Administrative Code allow a local government to modify the state energy standards when the government finds that its modifications are cost-effective and the California Energy Commission finds that the modifications will require the diminution of energy consumption levels permitted by the Energy Code; and WHEREAS, staff has reviewed the cost-effectiveness studies prepared by the California Statewide Codes and Standards Reach Code Program and finds them sufficient to show that the local two-way air conditioning modifications will comply with the requirements of Public Resources Code section 25402.1(h)(2) and Section 10-106 of the 2025 California Administrative Code; and
WHEREAS, based on these studies, the Town Council finds that the local twoway air conditioning modifications are cost-effective and will required buildings to be designed to consume no more energy than permitted by the California Energy Code; and
WHEREAS, following adoption of this Ordinance, the Town will submit the local amendments to the energy standards in the 2025 California Green Building Standards Code along with the required findings to the California Energy Commission, in accordance with Public Resources Code Section 25402.1(h)(2) and Section 10-106 of the 2025 California Administrative Code (Cal. Code Regs. Title 24, Part 1); and WHEREAS, following adoption of this Ordinance, the Town will submit the local amendments to the 2025 California Building Standards Code and required findings to the CBSC for filing, in accordance with Health & Safety Code Section 17958.7(a); and WHEREAS, the Town Council of the Town of Portola Valley (“Town Council”) intends to adopt an ordinance adopting by reference certain provisions of the California Building Standards Code and making modifications to certain of those provisions pursuant to Health and Safety Code Section 17958.5 (“Building Regulations Adoption Ordinance”);
74 AND WHEREAS, the Town Council has reviewed Attachment 1, which sets forth the reasons for the proposed modifications to the California Building Standards Code contained in the Building Regulations Adoption Ordinance.

NOW, THEREFORE, BE IT RESOLVED that the Town Council does hereby declare and find that:

1. The changes to the provisions of the California Building Standards Code set forth in the Building Regulations Adoption Ordinance are reasonably necessary because of local climatic, geological, or topographical conditions set forth in Attachment 1 in accordance with Health and Safety Code Section 17958.7; and

2. in accordance with Health and Safety Code Sections 17958, 17958.5, and 17958.7, as modified by AB 130, the Town Council finds that the changes affecting residential units in the provisions of the California Building Standards Code set forth in the Building Regulations Adoption Ordinance satisfy one or more of the conditions added by AB 130, as specified in Attachment 1; and

3. in accordance with Health and Safety Code Sections 17958, 17958.5, and 17958.7, as modified by AB 130, the Town Council finds that the two-way air conditioning and electric-readiness changes to building standards affecting residential units in the 2025 California Green Building Standards Code are necessary to implement the Town’s local code amendment adding a two-way air conditioning and electric-readiness requirement, and that the local code amendment is adopted to align with the Town’s General Plan Sustainability Element adopted in 2009, permits mixed-fuel residential construction consistent with federal law, and incentivizes all-electric construction, as part of the Town’s adopted greenhouse gas emissions reduction strategy in its General Plan Sustainability Element; and

4. in accordance with Public Resources Code Section 25402.1(h)(2) and Section 10-106 of the 2025 California Administrative Code (Cal. Code Regs. Title 24, Part 1), the Town Council finds that the Town’s two-way air conditioning reach code modifications to the energy standards in the California Green Building Standards Code (Cal. Code Regs.

Title 24, Part 11) (“CALGreen”) are cost-effective, and that the modifications will require the diminution of energy consumption levels permitted by the Energy Code; and

5. a copy of this Resolution, including Attachment 1, shall be filed with the California Building Standards Commission in accordance with Health and Safety Code Section 17958.7; and

6. a copy of this Resolution, including Attachment 1, shall be filed with the California Energy Commission in accordance with Public Resources Code Section 25402.1(h)(2).

PASSED AND ADOPTED by the Town Council of the Town of Portola Valley at a regular meeting of the Portola Valley Town Council held on the day of , 2025, by the following vote:
75 COUNCIL MEMBERS:

AYES:

NOES:

ABSENT:

ABSTAIN:

SIGNED:

MAYOR, TOWN OF PORTOLA VALLEY,

CALIFORNIA
ATTEST:

DATE:

TOWN CLERK
76 ATTACHMENT 1

FINDINGS OF NECESSITY FOR LOCAL AMENDMENTS
Pursuant to State Law, including but not limited to Sections 18941.5, 17958.5 and 17958.7 of the California Health and Safety Code, the Town Council of the Town of Portola Valley finds that the changes or modifications to the Building Code set forth in Ordinance No. 2025- ## are reasonably necessary due to certain local climatic, geologic and topographic conditions as described below:

FINDING 1: CLIMATIC CONDITIONS
Precipitation ranges from 15 to 24 inches per year with an average of approximately 20 inches per year. Ninety-six percent of the precipitation falls during the months of October through April, and four percent from May through September, leaving a dry period of at least five months each year. Relative humidity remains in the middle range most of the time, ranging from 45 to 65 percent in the winter, but occasionally falling as low as 15 percent. Temperatures from June through September average above 80°F.

It is not unusual to experience several continuous days with temperatures in the mid to high 90s. Prevailing winds in the area come from the west. However, winds are experienced from virtually every direction at one time or another. Velocities are generally in the 12-MPH range, gusting from 25 to 35 MPH.

Locally experienced dry periods cause extreme dryness of untreated wood shakes and shingles on buildings and non- irrigated grass, brush, and weeds, which are often near buildings with wooden roofs. Such dryness causes these materials to rapidly ignite and burn intensely. Because of dryness, a rapidly burning grass fire or exterior building fire will quickly transfer to other buildings with dry shake or shingle roofs by means of radiation or flying brands, sparks and embers. Where there are large and/or numerous buildings with untreated shake or shingle exteriors, a small fire can rapidly grow to a magnitude beyond the control capabilities of the Fire Department, resulting in an excessive fire loss to the community.
77 The average rainfall is frequently surpassed by concentrated periods of heavy rainfall. This factor combined with soil types, terrain, and existing road systems, have led to landslides and flooding across both Town and private road systems. The blockage of access routes delays and/or prevents the ability of fire apparatus to respond to emergency scenes. Although the Town has identified roads traditionally susceptible to closure, clearing of these routes remains dependent upon knowledge and availability of resources.

During 1997 and 1998, partial or complete road blockages were identified on Alpine Road, Wayside Road, Minoca Road, and Escobar Road.

In addition to causing fires to burn and spread rapidly, wind(s) frequently cause(s) tree limbs to break and trees to fall, which can damage electrical transmission lines. Fallen power lines not only cause power outages but, also spark fires. Local winds will continue to be a definite factor of major fire loss to buildings lacking ignition-resistant construction, fire resistive roofs and automatic sprinkler systems.

FINDING 2: GEOLOGIC CONDITIONS
The Town is located in close proximity to the San Andreas Fault and other numerous seismic faults elsewhere in the Bay Area. Buildings and other structures can experience major seismic damage, such as in the Loma Prieta earthquake in 1989. The area is replete with various soils and areas with significant movement potential.

A major earthquake could result in the cutting-off of response routes of fire companies by damaged and/or blocked roads. Earthquakes of the magnitude experienced locally can cause major damage to electrical transmission facilities, break gas and water lines which, in turn, can cause power failures, start fires throughout the Town and County and impair the ability to fight them. The occurrence of multiple fires will quickly disperse existing Fire Department resources, thereby reducing and/or delaying their response to any given fire. Even minor seismic activity has an adverse impact on fire protection. Any earth movement which causes buildings to move creates cracking and warping of walls, smoke barriers, door frames, etc., thereby negating the effectiveness of building elements intended to prevent fire and smoke from spreading within the building. 78 Additionally, these soils are susceptible to seismic shock and moisture concentrations that may result in landslides in hilly and creek-side areas along fire department access/response routes. Such restriction of response routes can result in major fire losses in locations where buildings are covered with untreated wood shakes or shingles, particularly where these structures have no automatic fire protection systems such as sprinklers.

FINDING 3: TOPOGRAPHIC CONDITIONS
Large areas of highly combustible dry grass, weeds, brush, and trees adjacent to structures are common throughout the Town. Above ground electrical power transmission lines are suspended through trees and above large areas of dry vegetation. The hilly terrain, limited surface streets, and arrangement of manmade features around many buildings preclude, or greatly limit, any approach to all but one side.

Above ground electrical transmission lines are subject to damage from overloading, winds, trees, earthquakes, and motor vehicle collisions. Fires involving large areas of dry vegetation can quickly grow to a magnitude beyond local Fire Department capabilities. The limited number of response routes and the lack of feasible alternate routes compound this problem. Additional delays must be anticipated due to attempts on the part of residents to flee or enter the fire area.

Fire damage from these delays results in the need for additional suppression resources to obtain control. The combination of buildings with untreated wood shake or shingle roofs and without fire sprinkler systems and impeded access for the Fire Department can readily result in multiple building fires and major fire losses.

Pursuant to AB 130, codified in Health & Safety Code Sections 17958, 17958.5 and 17958.7, the Town also finds that its local changes or modifications to building standards in the California Building Code applicable to residential units satisfy one or more of the following conditions:

AB 130 CONDITION 1: The changes or modifications are substantially equivalent to changes or modifications that were previously filed by the Town Council of the Town of Portola Valley and were in effect as of September 30, 2025.

AB 130 CONDITION 2: The California Building Standards Commission deems those changes or modifications necessary as emergency standards to protect health and safety.

AB 130 CONDITION 3: The changes or modifications relate to home hardening.

AB 130 CONDITION 4: The building standards relate to home hardening and are proposed for adoption by a fire protection district pursuant to Section 13869.7. 79 AB 130 CONDITION 5: The changes or modifications are necessary to implement a local code amendment that is adopted to align with the Town’s general plan approved on or before June 10, 2025, and that permits mixed-fuel residential construction consistent with federal law while also incentivizing all-electric construction as part of an adopted greenhouse gas emissions reduction strategy.

AB 130 CONDITION 6: The changes or modifications are related to administrative practices, are proposed for adoption during the intervening period pursuant to Section 18942, and exclusively result in any of the following:
(A) Reductions in time for a local agency to issue a postentitlement permit. (B) Alterations to a local agency’s postentitlement fee schedule. (C) Modernization of, or adoption of, new permitting platforms and software utilized by the local agency.
(D) Reductions in cost of internal operation for a local agency. (E) Establishment, alteration, or removal of local programs related to enforcement of building code violations or complaints alleging building code violations.

The table below describes the Town of Portola Valley’s amendments to specific provisions of the 2025 California Building Standards Code and states which of the findings above and other conditions make the amendment reasonably necessary. To the extent the amendments to the 2025 California Building Standards Code are applicable to residential units, the table also states which AB 130 conditions the amendments meet.

Matrix of Justifications for Local Amendments to 2025 California Building Code (Title 24, Part 2)
Portola Valley
Municipal
Code
Section(s)
State Code
Section(s)
Title Add Deleted Amended Justification
(see above)

15.04.020(B) 101.1 Title X 1, 2, 3
AB 130
Condition 1

15.04.020(C) 105.2 Work exempt
from permit
X 1, 2, 3
AB 130
Condition 1, 6

15.04.020(D) 109.6 Refunds X 1, 2, 3
AB 130
Condition 1

15.04.020(E) 111.3 Temporary
occupancy
X 1, 2, 3
AB 130
Condition 1

15.04.020(F) 113.1 General X 1, 2, 3
80 AB 130
Condition 1

15.04.020(G) 114.4 Violation
penalties
X 1, 2, 3
AB 130
Condition 1, 6

15.04.020(H) 903.2 Where required X 1, 3
AB 130
Condition 1, 3

15.04.020(I) 1031.2 Where required X 1, 2, 3
AB 130
Condition 1

15.04.020(J) 1405.1 Combustible
exterior wall
coverings
X 1, 3
AB 130
Condition 1, 3

15.04.020(K) 1505.1 General X 1, 3
AB 130
Condition 1, 3

15.04.020(L) Table
1208.10.1
Wall Bracing
Requirements
X 2
AB 130
Condition 1
Matrix of Justifications for Local Amendments to 2025 California Residential Code (Title 24, Part 2.5)
Portola
Valley
Municipal
Code
Section(s)
State Code
Section(s)
Title Add Deleted Amended Justification
(see above)

15.04.030(B) R101.1 Title X 1, 2, 3
AB 130
Condition 1

15.04.030(C) R105.2 Work exempt
from permit.

X 1, 2, 3
AB 130
Condition 1, 6

15.04.030(D) R108.5 Refunds X 1, 2, 3
AB 130
Condition 1

15.04.030(E) R110.3 Temporary
occupancy.

X 1, 2, 3
AB 130
Condition 1

15.04.030(F) R112.1 General. X 1, 2, 3
AB 130
Condition 1
81 15.04.030(G) R113.4 Violation
penalties.

X 1, 2, 3
AB 130
Condition 1, 6

15.04.030(H) R301.2 Climatic and
geographic
design
criteria.

X 1, 2, 3
AB 130
Condition 1

15.04.030(I) R309.1 Townhouse
automatic fire
sprinkler
systems.

X 1, 3
AB 130
Condition 1, 3

15.04.030(J)R309.1.1 Design and
installation.

X 1, 3
AB 130
Condition 1, 3

15.04.030(K) R309.2 One and two-
family
dwelling
automatic
sprinkler
systems.

X 1, 3
AB 130
Condition 1, 3

15.04.030(L) R309.2.1 Design and
installation.

X 1, 3
AB 130
Condition 1, 3

15.04.030(M) R319.1 Emergency
escape and
rescue
opening
required.

X 1, 2, 3
AB 130
Condition 1

15.04.030(N) R319.7 Alterations or
repairs of
existing
basement.

X 1, 2, 3
AB 130
Condition 1

15.04.030(O) R319.7.1 Existing
emergency
escape and
rescue
openings.

X 1, 2, 3
AB 130
Condition 1

15.04.030(P) R330.1 GeneralX 1, 2, 3
AB 130
Condition 1

15.04.030(Q) Table
R602.10.3(3)
Bracing
Requirements
Based on
Seismic
Design
Category
X2
AB 130
Condition 1
82 15.04.030(R) R902.1 Roof covering
materials.

X 1, 3
AB 130
Condition 1, 3

15.04.030(S) R902.1.1 Roof
coverings
within fire
hazard
severity
zones.

X 1, 3
AB 130
Condition 1, 3

15.04.030(T) R902.1.2 Roof
coverings in
all other
areas
X 1, 3
AB 130
Condition 1, 3

15.04.030(U) R902.2 Fireretardanttreated
shingles and
shakes.

X 1, 2, 3
AB 130
Condition 1
Matrix of Justifications for Local Amendments to 2025 California Plumbing Code (Title 24, Part 5)
Portola
Valley
Municipal
Code
Section(s)
State Code
Section(s)
Title Add Deleted Amended Justification
(see above)

15.04.060(B) 1211.8 Earthquake
Actuated Gas
Shutoff Valves
X 2
AB 130
Condition 1
Matrix of Justifications for Local Amendments to 2025 California Green Building Standards Code
(Title 24, Part 6)
Portola Valley
Municipal Code
Section(s)
State Code
Section(s)
Title Add Deleted Amended Justification
(see above)

15.04.110(B) 102.3.1 Third party
verification
X 1, 2, 3
AB 130
Condition 1

15.04.110(C) 202 Definitions X 1, 2, 3
83 AB 130
Condition 1

15.04.110(D) 202 Definition of
“Newly
Constructed”
X 1, 2, 3
AB 130
Condition 1

15.04.110(E) 301.1.1 Additions and
alterations
X 1, 2, 3
AB 130
Condition 1

15.04.110(F) 4.106.5 Residential
additions,
alterations,
and accessory
dwelling unit
conversions
X 1, 2, 3
AB 130
Condition 1,
5 15.04.110(G) 4.304.2 Reduction of
potable water
use on turf.

X 1, 3
AB 130
Condition 1

15.04.110(H) 4.305 Graywater
“Ready”
Infrastructure
[LR].

X 1, 3
AB 130
Condition 1

15.04.110(I) A4.204.1 Energy
Efficiency
X 1
AB 130
Condition 5

15.04.110(J) 101.12 Hardship or
infeasibility
exemption
X 1
AB 130
Condition 1
Matrix of Justifications for Local Amendments to 2025 California Wildland-Urban Interface Code
(Title 24, Part 7)
Portola
Valley
Municipal
Code
Section(s)
State Code
Section(s)
Title Add Deleted Amended Justification
(see above)

15.04.120(B) 202 New Building. X 1, 3
AB 130
Condition 3

15.04.120(C) 504.2 Roof
Coverings.

X 1, 3
AB 130
Condition 3

15.04.120(D) 504.5.2 Exterior wall
coverings.

X 1, 3
84 AB 130
Condition 3

15.04.120(E) 507.1 General X 1, 3
AB 130
Condition 3
1987953.3
1987953.4
85 2025 CostEffectiveness Study:

Single Family AC to Heat
Pump Replacement
Prepared by:

Ada Shen, Rebecca Evans, Keith
Saechao, Alea German, & Marc
Hoeschele, Frontier Energy, Inc
Misti Bruceri, Misti Bruceri &
Associates, LLC
Prepared for:

Kelly Cunningham, Codes and
Standards Program, Pacific Gas
and Electric
Revision: 2.0
Last modified: 2025/08/08
86 Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 1 2025/08/08
Table 1. Summary of Revisions
Date Description Reference (page or section)
6/09/2025 Original Release N/A
8/08/2025 The following issues were corrected in this report. Note that none of the issues flipped cost-effectiveness results from costeffective to not cost-effective or vice versa in any climate zone except for the DFHP in the 1978-1991 vintage in CZ 15 is now LSC cost-effective.

1. 30-year DFHP results for all sizes except the 3-ton
system have been impacted. Increase in costeffectiveness for Climate Zones 2,4,8-15, decrease in cost effectiveness in Climate Zone 3.

Table 7, Table 8, Table 9,
Table 12, Table 15, Table 22,
Table 25, Table 28, Table 31,
Section 4: Recommendations
and Discussion
Legal Notice
This report was prepared by
Pacific Gas and Electric Company
and funded by the California utility
customers under the auspices of
the California Public Utilities
Commission.

Copyright 2025, Pacific Gas and
Electric Company. All rights
reserved, except that this
document may be used, copied,
and distributed without
modification.

Neither PG&E nor any of its
employees makes any warranty,
express or implied; or assumes
any legal liability or responsibility
for the accuracy, completeness or
usefulness of any data,
information, method, product,
policy or process disclosed in this
document; or represents that its
use will not infringe any privatelyowned rights including, but not limited to, patents, trademarks or
copyrights.
87 Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 2 2025/08/08

2. Incremental cost tables 7-9 had incorrect condensing furnace costs.

3. Zero NOx discussion in the recommendations and
discussion section was based on the high gas
escalation rates but were compared against the
modest escalation standard results. The discussion
has been corrected to compare against the high gas
escalation standard results instead.
88 Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 3 2025/08/08
Acronym List
AC – Air conditioner
ACH50 – Air Changes per
Hour at 50 pascals pressure
differential
AFUE – Annual Fuel
Utilization Efficiency
B/C – Lifecycle Benefit-toCost Ratio
BSC – Building Standards
Commission
CA IOUs – California
Investor-Owned Utilities
CARE – California Alternate
Rates for Energy
CASE – Codes and
Standards Enhancement
CBECC-Res – Computer
program developed by the
California Energy
Commission for
demonstrating compliance
with the California
Residential Building Energy
Efficiency Standards
CFM – Cubic Feet per
Minute
CO2 – Carbon Dioxide
CPAU – City of Palo Alto
Utilities
CPUC – California Public
Utilities Commission
CZ – California Climate
Zone
DFHP – Dual Fuel Heat
Pump
DHW – Domestic Hot Water
DOE – Department of
Energy
EDR – Energy Design
Rating
EER – Energy Efficiency
Ratio
EF – Energy Factor
GHG – Greenhouse Gas
HPWH – Heat Pump Water
Heater
HSPF – Heating Seasonal
Performance Factor
HVAC – Heating,
Ventilation, and Air
Conditioning
IOU – Investor Owned
Utility
kBtu – kilo-British thermal
unit
kWh – Kilowatt Hour
LCC – Lifecycle Cost
LLAHU – Low Leakage Air
Handler Unit
VLLDCS – Verified Low
Leakage Ducts in
Conditioned Space
NEEA – Northwest Energy
Efficiency Alliance
NEM – Net Energy Metering
NPV – Net Present Value
PG&E – Pacific Gas and
Electric Company
PV – Photovoltaic
SCE – Southern California
Edison
SDG&E – San Diego Gas
and Electric
SEER – Seasonal Energy
Efficiency Ratio
SF – Single Family
SMUD – Sacramento
Municipal Utility District
SoCalGas – Southern
California Gas Company
TDV – Time Dependent
Valuation
Therm – Unit for quantity of
heat that equals 100,000
British thermal units
Title 24 – Title 24, Part 6
TOU – Time-Of-Use
UEF – Uniform Energy
Factor
89 Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 1 2025/08/08
Table of Contents
Executive Summary............................................................................................................4 1 Introduction..................................................................................................................7 2 Methodology and Assumptions..................................................................................9

2.1 Modeling............................................................................................................... 9

2.2 Prototype Characteristics.....................................................................................10

2.3 Cost-Effectiveness Approach...............................................................................13

2.3.1 Benefits ...........................................................................................................13

2.3.2 Costs ...............................................................................................................13

2.3.3 Metrics.............................................................................................................15

2.3.4 Utility Rates .....................................................................................................16

2.4 Measure Details and Cost....................................................................................18

2.4.1 Lifecycle Cost Assuming Zero-NOx Standards for Space Heating After 2030 ..20 3 Results........................................................................................................................22

3.1 Cost-Effectiveness Results ..................................................................................22

3.1.1 Cost Effectiveness Results Using Standard Tariffs...........................................23

3.1.2 Cost Effectiveness Results Using CARE Tariffs ...............................................26

3.2 Zero-NOx Scenario Results.................................................................................28

3.3 AC Pathways for Heat Pump Replacements........................................................30 4 Recommendations and Discussion..........................................................................33 5 References .................................................................................................................36 6 Appendices ................................................................................................................38

6.1 Map of California Climate Zones..........................................................................38

6.2 Cost-Effectiveness Results ..................................................................................39

6.2.1 Standard Rates................................................................................................39

6.2.2 CARE tariffs.....................................................................................................45

6.3 Utility Rate Schedules..........................................................................................51

6.3.1 Pacific Gas & Electric.......................................................................................51

6.3.2 Southern California Edison ..............................................................................60

6.3.3 Southern California Gas...................................................................................64

6.3.4 San Diego Gas & Electric ................................................................................65 90 Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 2 2025/08/08

6.3.5 City of Palo Alto Utilities ...................................................................................72

6.3.6 Sacramento Municipal Utilities District (Electric Only) ......................................74

6.3.7 Fuel Escalation Assumptions ...........................................................................76 List of Tables
Table 1. Summary of Revisions............................................................................................ 1 Table 2. Residential Prototype Characteristics ....................................................................10 Table 3. Efficiency Characteristics for Three Vintage Cases................................................12 Table 4. System Sizing by Climate Zone .............................................................................15 Table 5. Investor-Owned Utility Tariffs Used Based on Climate Zone ..................................16 Table 6. Publicly Owned Utility Tariffs Used Based on Climate Zone...................................17 Table 7. Lifecycle Incremental Cost Breakdown for a 4-Ton DFHP Existing Furnace...........19 Table 8. Lifecycle Incremental Cost Breakdown for 4-Ton HPSH ........................................19 Table 9. HVAC Measure Cost Assumptions – 4-Ton Electric Replacements........................20 Table 10. SCAQMD Rule 1111 Proposed Manufacturer Compliance Targets.......................20 Table 11. Lifecycle Incremental Cost Breakdown for 4-Ton System with no Gas Furnaces after 2030............................................................................................................................21 Table 12. [1992-2010] DFHP Existing Furnace....................................................................23 Table 13. [1992-2010] Standard Efficiency HPSH ...............................................................24 Table 14. [1992-2010] High Efficiency HPSH ......................................................................25 Table 15. [1992-2010] DFHP Existing Furnace CARE.........................................................26 Table 16. [1992-2010] Standard Efficiency HPSH CARE ....................................................27 Table 17. [1992-2010] High Efficiency HPSH CARE............................................................28 Table 18. DFHP Existing Furnace On-Bill NPV with High Gas Escalation (Zero-NOx Rule) 29 Table 19. DFHP Existing Furnace LSC Savings (Zero-NOx Rule).......................................30 Table 20. New AC Only Path Cost Estimates ......................................................................32 Table 21. New AC/Furnace and New Ducts Path Cost Estimates........................................32 Table 22. [Pre-1978] DFHP Existing Furnace......................................................................39 Table 23. [Pre-1978] Standard Efficiency HPSH..................................................................40 Table 24. [Pre-1978] High Efficiency HPSH.........................................................................41 Table 25. [1978-1991] DFHP Existing Furnace....................................................................42 Table 26. [1978-1991] Standard Efficiency HPSH ...............................................................43 Table 27. [1978-1991] High Efficiency HPSH ......................................................................44 Table 28. [Pre-1978] DFHP Existing Furnace CARE ...........................................................45 Table 29. [Pre-1978] Standard Efficiency HPSH CARE.......................................................46 Table 30. [Pre-1978] High Efficiency HPSH CARE..............................................................47 Table 31. [1978-1991] DFHP Existing Furnace CARE.........................................................48 Table 32. [1978-1991] Standard Efficiency HPSH CARE ....................................................49 Table 33. [1978-1991] High Efficiency HPSH CARE............................................................50 Table 34. PG&E Baseline Territory by Climate Zone............................................................51 Table 35. PG&E Monthly Gas Rate ($/therm)......................................................................52 91 Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 3 2025/08/08
Table 36. SCE Baseline Territory by Climate Zone ..............................................................60 Table 37. SoCalGas Baseline Territory by Climate Zone .....................................................64 Table 38. SoCalGas Monthly Gas Rate ($/therm)................................................................65 Table 39. SDG&E Baseline Territory by Climate Zone.........................................................65 Table 40. SDG&E Monthly Gas Rate ($/therm) ...................................................................66 Table 41. CPAU Monthly Gas Rate ($/therm) ......................................................................72 Table 42. Real Utility Rate Escalation Rate Assumptions, CPUC En Banc and 2022 TDV Basis...................................................................................................................................77 Table 43. Real Utility Rate Escalation Rate Assumptions, 2025 LSC Basis.........................78 List of Figures
Figure 1. AC vs. Heat Pump Pathway Requirements ..........................................................31 Figure 2. AC vs. Heat Pump Energy Comparison................................................................31 Figure 3. Map of California climate zones. ..........................................................................38 92 Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 4 2025/08/08
Executive Summary
The California Codes and Standards (C&S) Reach Codes program, also known as the Local Energy Codes program, provides technical support to local governments considering adopting a local ordinance (reach code) intended to support meeting local and/or statewide energy efficiency and greenhouse gas (GHG) reduction goals. The program facilitates adoption and implementation of the code when requested by local jurisdictions by providing resources such as cost-effectiveness studies, model language, sample findings, and other supporting documentation.

It is important to note that there is a voluntary measure in the 2025 CALGreen for replacing an air conditioner with a heat pump at time of air conditioner replacement, which can be adopted as is. This report seeks to provide options to modify the heat pump measure and demonstrate the cost-effectiveness of these options.

This analysis used two different metrics to assess the cost-effectiveness of the proposed upgrades for a 1,665 square foot single family home prototype with an attached garage.

Both methodologies require estimating and quantifying the incremental costs and energy savings associated with each energy efficiency measure over a 30-year analysis period. OnBill cost-effectiveness is an occupant-based lifecycle cost (LCC) approach that values energy based upon estimated site energy usage and customer utility bill savings using today’s electricity and natural gas utility tariffs. To reflect how natural gas prices fluctuate with seasonal supply and demand, a normalized curve was used to estimate the cost for the remaining months relative to today’s rates. Long-term Systemwide Cost (LSC) is the California Energy Commission’s metric for determining cost-effectiveness of efficiency measures in the 2025 Energy Code. This metric is intended to capture the long-term projected cost of energy including costs for providing energy during peak periods of demand, carbon emissions, grid transmission and distribution impacts.

Local jurisdictions may adopt ordinances that amend different parts of the California Building Standards Code or may elect to amend other state or municipal codes. The decision regarding which code to amend will determine the specific requirements that must be followed for an ordinance to be legally enforceable. For example, reach codes that amend Part 6 of the California Building Code (the Energy Code) and require energy performance beyond state code minimums must demonstrate the proposed changes are cost-effective and obtain approval from the Energy Commission as well as the Building Standards Commission (BSC). Amendments to Part 11, such as requirements for increased water efficiency or electric vehicle infrastructure only require BSC approval and do not require the Energy Commission approval. Although a cost-effectiveness study is only required to amend Part 6 of the California Building Code, this study provides valuable context for jurisdictions pursuing other ordinance paths to understand the economic impacts of the policy decision.

This study documents the estimated costs, benefits, energy impacts and greenhouse gas emission reductions that may result from implementing an ordinance based on the results to help residents, local leadership, and other stakeholders make informed policy decisions. 93 Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 5 2025/08/08
The following summarizes key results:

2. The study assumes utility rates escalate over time. Because it is very difficult to predict how the rates will change, the analysis presents two escalation scenarios (modest and high gas escalation) to represent a range of outcomes.

3. The LSC metric most often produces more favorable cost-effectiveness results relative to the results produced using actual utility costs (On-Bill). When the analysis assumes a higher escalation rate for natural gas costs relative to electricity in future years (high gas escalation), the On-Bill results are more favorable in some cases. a. In the oldest (pre-1978) vintage, all three measures (dual fuel heat pump with existing furnace, standard heat pump space heater, and high efficiency heat pump space heater) are cost-effective using the LSC metric in all climate zones. When using the On-Bill metric, the measures remain cost-effective in most climate zones.
b. In the newer (1978-1991 and 1992-2010) vintages, the dual fuel heat pump (DFHP Existing Furnace) and the standard efficiency HPSH are cost-effective based on LSC in all cases except for Climate Zone 15 when using both the standard and California Alternate Rates for Energy (CARE) tariff.

4. Using the CARE tariff results in higher cost savings and cost-effectiveness relative to standard rates, with almost all cases yielding first year utility cost savings. The DFHP Existing Furnace is On-Bill cost-effective based on the high gas escalation scenario in all cases in the pre-1978 vintage, and almost all cases in the 1978-1991 and 1992-2010 vintage. It is also On-Bill cost-effective in most climate zones for the modest gas escalation scenario across all vintages. In Climate Zones 5, 8, 9, 10, 14, and 15, cost-effectiveness declines relative to other areas, and in some cases is not cost-effective from an On-Bill perspective. This is the case for both the CARE tariff and the standard rate.

5. The analysis also modeled the cost impact of using a standard time-of-use electricity tariff versus switching to a newer electrification tariff, designed to reduce costs in homes with heat pumps and/or electric vehicles. Older homes tend to be the least efficient and achieve the most savings from improving equipment efficiency. In most of the state, because older homes tend to use more electricity than a similarly sized, newer vintage home, they realize more costs savings under the electrification tariff.

Newer homes tend to use less electricity and therefore do not realize the same cost 94 Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 6 2025/08/08
savings from switching tariffs; they generally perform better under the standard tariff.

This trend is different in milder climate zones in SCE territory (excluding CZ 15), where newer homes realize more cost savings. Both the standard and electrification tariffs in SCE territory include a daily allocation of lower-cost baseline electricity and a second, higher-priced tier when the baseline is exceeded. In many newer homes, a higher percentage of overall electricity use is within the baseline allocation, resulting in greater cost savings.

6. Higher efficiency equipment reduces utility costs in all cases and improves costeffectiveness in many climate zones in the oldest vintage relative to standard efficiency equipment. However, in more efficient newer homes, where costeffectiveness is generally lower, the savings are insufficient to offset the roughly $3,000 increase in incremental cost.

7. Given the adopted Bay Area Air Quality Management District (BAAD) Zero NOx rule, and the proposed California Air Resource Board or South Coast Air Quality Management District (SCAQMD) Zero-NOx rules, and gas furnaces are no longer available or less available to be installed in 2030, a sensitivity analysis was performed for the Zero NOx scenario and found that cost-effectiveness declines in many cases except in Climate Zones 8-10, some results improve enough to become cost-effective. The improved cost-effectiveness in Climate Zones 8-10 is due to the higher baseline cost when a HPSH must be installed at year 10 when the furnace must be replaced. However, the overall magnitude of 30-year On-Bill costeffectiveness is lower because there are only 10 years of utility cost savings. After year 10 the base case and upgrade measures are both heat pumps.

This report documents the key results and conclusions from the Reach Codes Team analysis. A full dataset of all results can be downloaded at https://localenergycodes.com/content/resources. Results alongside policy options can also be explored using the Cost-effectiveness Explorer at https://explorer.localenergycodes.com/.

Model ordinance language and other resources are posted on the C&S Reach Codes Program website at LocalEnergyCodes.com. Local jurisdictions that are considering adopting an ordinance may contact the program for further technical support at [email protected].
95 Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 7 2025/08/08
1 Introduction
The California Codes and Standards Reach Codes program, also known as the Local Energy Codes program, provides technical support to local governments considering adopting a local ordinance intended to support meeting local and/or statewide energy efficiency and greenhouse gas (GHG) reduction goals. The program facilitates adoption and implementation of the code when requested by local jurisdictions by providing resources such as cost-effectiveness studies, model language, sample findings, and other supporting documentation.

Local jurisdictions may adopt ordinances that amend different parts of the California Building Standards Code or may elect to amend other state or municipal codes. The decision regarding which code to amend will determine the specific requirements that must be followed for an ordinance to be legally enforceable. For example, reach codes that amend Part 6 of the California Building Code (the Energy Code) (CEC, 2025) and require energy performance beyond state code minimums must demonstrate the proposed changes are cost-effective and obtain approval from the Energy Commission as well as the Building Standards Commission (BSC). Amendments to Part 11, such as requirements for increased water efficiency or electric vehicle infrastructure only require BSC approval and do not require the Energy Commission approval. Although a cost-effectiveness study is only required to amend Part 6 of the California Building Code, this study provides valuable context for jurisdictions pursuing other ordinance paths to understand the economic impacts of the policy decision. This study documents the estimated costs, benefits, energy impacts and greenhouse gas emission reductions that may result from implementing an ordinance based on the results to help residents, local leadership, and other stakeholders make informed policy decisions.

This report is an update to the 2022 Single Family Retrofit Cost-effectiveness Study (Statewide Reach Codes Team, 2024) focused on an ordinance structure that encourages air conditioner (AC) to heat pump replacement. The methodology, prototype characteristics, and relevant measure packages are retained from the main study referenced above. The study includes updated utility rates, revised costs based on the TECH Clean California1 incremental cost study data, estimated costs for the AC path, updated and expanded AC path options, and a new cost-effectiveness scenario that considers upcoming proposed zero-NOx emission regulations (SCAQMD, 2025) (California Air Resources Board, 2022) (BAAD, 2025).

Local jurisdictions in California may consider adopting local energy ordinances to achieve energy savings beyond what will be accomplished by enforcing building efficiency requirements that apply statewide.

Local jurisdictions may also adopt ordinances that amend different parts of the California Building Standards Code or may elect to amend other state or municipal codes. The 1 https://techcleanca.com/
96 Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 8 2025/08/08
decision regarding which code to amend will determine the specific requirements that must be followed for an ordinance to be legally enforceable. Although a cost-effectiveness study is only required to amend Part 6 of the CA Building Code, it is important to understand the economic impacts of any policy decision. This study documents the estimated costs, benefits, energy impacts and greenhouse gas emission reductions that may result from implementing an ordinance based on the results to help local leadership, residents, and other stakeholders make informed policy decisions.

This report was developed in coordination with the California Statewide Investor-Owned Utilities (IOUs) Codes and Standards Program, the California Energy Commission (CEC), key consultants, and engaged cities—collectively known as the Statewide Reach Codes Team. Model ordinance language and other resources are posted on the C&S Reach Codes Program website at LocalEnergyCodes.com. Local jurisdictions that are considering adopting an ordinance may contact the program for further technical support at [email protected].
97 Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 9 2025/08/08
2 Methodology and Assumptions
This study evaluates a potential reach code that encourages a heat pump or dual fuel system that includes a heat pump combined with a furnace when an air conditioner is replaced or installed new in existing single family homes. The ordinance structure and this analysis is based on the voluntary requirements adopted in 2025 Title 24, Part 11 California Green Building Standards Code (CALGreen), Section A4.204.1.1 for heat pump space conditioning alterations in single family homes (California Energy Commission, 2025). The proposed reach code also defines pathways for air conditioning equipment to be installed combined with additional efficiency measures. The heat pump path requires the heat pump as the primary heat source, with backup heating allowable either provided by electric resistance or natural gas. In cases where the existing furnace remains, the heat pump is installed alongside the existing furnace with integrated controls to allow for the furnace to provide backup heating. In alignment with the 2025 Energy Code requirements the heat pump must be sized to satisfy the heating load at the design heating temperature without the use of backup heat.

All methodology and assumptions are consistent with prior statewide analysis (Statewide Reach Codes Team, 2024) with the following exceptions:

1. Updated utility rates to January 2025

2. Equipment costs based on TECH data where available; the original report was based on Statewide contractor survey costs

3. Cost estimates were obtained for the AC path

4. Expanded AC path options

5. Cost-effectiveness results for the scenario if gas furnaces are no longer available for sale in California in 2030

2.1 Modeling
The Reach Codes Team performed energy simulations using the 2025 research version of the Residential California Building Energy Code Compliance software (CBECC). The 2025 version of CBECC includes updated weather files, metrics, and the weather stations were changed in Climate Zones 4 and 6 from San Jose to Paso Robles and Torrance to Los Angeles International Airport, respectively. Note that at the time of this report, the Energy Commission was working on integrating a new heat pump model into the CBECC-Res software to better reflect the actual energy use of heat pumps. The updated model results in lower heating energy use than is currently estimated. Once the revised software is released, the reach codes team plans to update this analysis.

Three unique building vintages are included: pre-1978, 1978-1991, and 1992-2010. The vintages were defined based on review of historic building code requirements and defining periods with distinguishing features. The proposed measures were modeled to determine the projected site energy (therm and kWh), source energy, GHG emissions, and long-term systemwide cost (LSC) impacts. Annual utility costs were calculated using hourly data 98 Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 10 2025/08/08
output from CBECC, and updated (as of 1/1/2025) electricity and natural gas tariffs for each of the investor-owned utilities (IOUs) as appropriate for that climate zone.

Site energy results are similar between CBECC-Res 2022 and 2025. The 2025 compliance metrics include assumptions that more appliances will be electric in the future. This is predicted to result in higher natural gas retail rates as a result of gas utilities continuing to maintain safe and reliable infrastructure amidst declining natural gas use.

Equivalent CO2 emission reductions were calculated based on outputs from the CBECCRes simulation software. Electricity emissions vary by region and by hour of the year.

CBECC-Res applies two distinct hourly profiles, one for Climate Zones 1 through 5 and 11 through 13 and another for Climate Zones 6 through 10 and 14 through 16. Natural gas emissions do not vary hourly. To compare the mixed-fuel and all-electric cases side-by-side, GHG emissions are presented as pounds of CO2-equivalent (CO2e) emissions.

The Statewide Reach Codes Team designed the approach and selected measures for evaluation based on the 2019 existing building single family reach code analysis (Statewide Reach Codes Team, 2021) and supporting analysis used in the 2025 Energy Code development cycle as well as from outreach to architects, builders, and engineers.

2.2 Prototype Characteristics
The Energy Commission defines building prototypes which it uses to evaluate the costeffectiveness of proposed changes to Energy Code requirements. Average home size has steadily increased over time, and the Energy Commission single family new construction prototypes are larger than many existing single family homes across California. For this analysis, a 1,665 square foot prototype was evaluated. Table 2 describes the basic characteristics of the single family prototype. Additions are not evaluated in this analysis as they are already addressed in Section 150.2 of the Energy Code. In the 2025 Energy Code heat pumps are prescriptively required for space and water heating for additions (California Energy Commission, 2023).

Table 2. Residential Prototype Characteristics
Climate Zone Specification
Existing Conditioned Floor Area 1,665 ft2
Num. of Stories 1
Num. of Bedrooms 3
Window-to-Floor Area Ratio 13%
Attached Garage 2-car garage
Three building vintages were evaluated to determine sensitivity of existing building performance on cost-effectiveness of upgrades. For example, it is widely recognized that adding attic insulation in an older home with no insulation is cost-effective, however, newer homes will likely have existing attic insulation reducing the cost-effectiveness of an incremental addition of insulation. The building characteristics for each vintage were 99 Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 11 2025/08/08
determined based on either prescriptive requirements from the building code that were in effect or standard construction practice during that time period. For example, homes built under 2001 Title 24 are subject to prescriptive envelope code requirements very similar to homes built under the 2005 code cycle, which was in effect until January 1, 2010.

Table 3 summarizes the assumptions for each of the three vintages. Additionally, the analysis assumed the following features when modeling the prototype buildings. • Efficiencies were defined by year of the most recent equipment replacement based on standard equipment lifetimes.
• Individual space conditioning and water heating systems, one per single family building.
• Split-system air conditioner with natural gas furnace. • Gas cooktop, oven, and clothes dryer.

The methodology applied in the analyses begins with a design that matches the specifications as described in Table 3 for each of the three vintages. Heat pump space conditioning measures were modeled to determine the projected energy performance and utility cost impacts relative to the baseline vintage.
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Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 12 2025/08/08
Table 3. Efficiency Characteristics for Three Vintage Cases Building Component Efficiency
Feature Pre-1978 Vintage 1978-1991 Vintage 1992-2010 Vintage Envelope
Exterior Walls 2x4, 16-inch on center wood frame,
R-02
2x4 16 inch on center wood frame,
R-11
2x4 16 inch on center wood frame,
R-13
Foundation Type & Insulation Uninsulated slab (CZ 2-15) Raised floor, R-0 (CZ 1 & 16)
Uninsulated slab (CZ 2-15)
Raised floor, R-0 (CZ 1 & 16)
Uninsulated slab (CZ 2-15)
Raised floor, R-19 (CZ 1 & 16)
Ceiling Insulation & Attic Type
Vented attic, R-5 @ ceiling level for CZ
6 & 7,
Vented attic, R-11 @ ceiling level
(all other CZs)
Vented attic, R-19 @ ceiling level Vented attic, R-30 @ ceiling level Roofing Material & Color Asphalt shingles, dark
(0.10 reflectance, 0.85 emittance)
Asphalt shingles, dark
(0.10 reflectance, 0.85 emittance)
Asphalt shingles, dark
(0.10 reflectance, 0.85 emittance)
Radiant Barrier No No No
Window Type: U-factor/SHGC3 Metal, single pane: 1.16/0.76 Metal, dual pane: 0.79/0.70 Vinyl, dual pane Low-E: 0.55/0.40 House Infiltration at 50 Pascals 15 ACH50 10 ACH50 7 ACH50 HVAC Equipment
Heating Efficiency 78 AFUE (assumes 2 replacements) 78 AFUE (assumes 1 replacement) 78 AFUE Cooling Efficiency 10 SEER (assumes 2 replacements) 10 SEER (assumes 1 replacement) 13 SEER, 11 EER Duct Location & Details Attic, R-2.1, 30% leakage at 25 Pa Attic, R-2.1, 25% leakage at 25 Pa Attic, R-4.2, 15% leakage at 25 Pa Whole Building Mechanical
Ventilation None None None
Water Heating Equipment
Water Heater Efficiency 0.575 Energy Factor (assumes 2
replacements)

0.575 Energy Factor (assumes 1
replacement) 0.575 Energy Factor
Water Heater Type 40-gallon gas storage 40-gallon gas storage 40-gallon gas storage Pipe Insulation None None None
Hot Water Fixtures Standard, non-low flow Standard, non-low flow Standard, non-low flow 2 Pre-1978 wall modeled with R-5 cavity insulation to better align wall system performance with monitored field data and not overestimate energy use. 3 Window type selections were made based on conversations with window industry expert, Ken Nittler. If a technology was entering the market during the time period (e.g., Low-E during 1992-2010 or dual-pane during 1978-1991) that technology was included in the analysis. This provides a conservative assumption for overall building performance and additional measures may be cost-effective for buildings with lower performing windows, for example buildings with metal single pane windows in the 1978-1991 vintage
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2.3 Cost-Effectiveness Approach

2.3.1 Benefits
This analysis used two different metrics to assess the cost-effectiveness of the proposed upgrades. Both methodologies require estimating and quantifying the incremental costs and energy savings associated with each energy efficiency measure. The main difference between the methodologies is the way they value energy impacts:
• On-Bill: Customer-based lifecycle cost approach that values energy based upon estimated site energy usage and customer On-Bill savings using electricity and natural gas utility rate schedules over a 30-year duration, accounting for a three percent discount rate and energy cost inflation per Appendix 6.3.7. • Long-term Systemwide Cost (LSC): Formerly known as Time Dependent Valuation (TDV) energy cost savings, LSC reflects the Energy Commission’s current lifecycle cost (LCC) methodology, which is intended to capture the total value or cost of energy use over 30 years. This method accounts for the hourly cost of marginal generation, transmission and distribution, fuel, capacity, losses, and cap-and-tradebased CO2 emissions (California Energy Commission, 2023). This is the methodology used by the Energy Commission in evaluating cost-effectiveness for measures in the 2025 Energy Code.

Energy simulations were completed using the 2025 research version of the Residential California Building Energy Code Compliance software (CBECC).

2.3.2 Costs
The Reach Codes Team assessed the incremental costs and savings of the packages over the lifecycle of 30-years. Incremental costs represent the equipment, installation, replacement, and maintenance costs of the proposed measure relative to the 2025 Energy Code minimum requirements or standard industry practices.

In February 2024, the TECH Clean California statewide program completed an incremental cost study from cost data collected from 64 contractor participants (Opinion Dynamics, 2024). This report directly uses the TECH costs for all the scenarios for which there was TECH cost data available. These costs were supplemented with measure costs the Reach Codes Team obtained from a contractor survey conducted in the summer of 2023. Additional detail on the contractor cost survey is available in the prior existing building statewide study (Statewide Reach Codes Team, 2024). The following summarizes key assumptions in this costing approach.
• Average statewide costs from the TECH Study were used, no regional specific costs were applied.
• Costs for 3-ton and 4-ton units were scaled for smaller and larger systems based on linear interpolation between the 3-ton and 4-ton costs. 102
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• The TECH study provided cost for a minimum efficiency 60,000 Btu/h gas furnace.

However, beginning in 2028, newly installed residential gas furnaces must comply with updated federal efficiency standards requiring a minimum of 95% AFUE4 .

Because the TECH study did not include cost estimates for a 95% AFUE condensing furnace, an adjustment was made using data from the statewide contractor cost survey. For systems requiring larger furnace capacities, cost estimates were derived as follows:
o 80,000 Btu/h furnaces (serving systems sized 3 tons): The cost difference between the minimum efficiency and 95% AFUE versions of the 80,000 Btu/h furnace and the cost difference between the minimum efficiency 80,000 Btu/h furnace and the minimum efficiency 60,000 Btu/h furnace, as reported in the contractor survey, was added to the TECH cost for the 60,000 Btu/h unit. o 100,000 Btu/h furnaces (serving systems 4 tons and larger): The same method was applied using the corresponding cost differential for 100,000 Btu/h units.
• At time of replacement for the heat pump, based on heating loads and contractor feedback it is assumed an electric resistance backup coil would be installed with the air handler for Climate Zones 1 and 16. The CBECC-Res software applies back up electric resistance heating for all climate zones whenever it is assumed that the heat pump cannot meet the heating load based on the performance of currently available products (Heinemeier, 2025).The TECH costs did not include this option. The $819 incremental cost from the statewide study was added in this case. • At the time of replacement for a furnace when it fails, the statewide study assumed a fan motor replacement. The TECH costs did not include this option. A $1,200 incremental cost was added to the TECH cost.
• At time of replacement for high efficiency heat pump, the sum of the TECH cost for standard efficiency heat pump and the incremental cost difference from the statewide study for high efficiency and standard efficiency heat pump was applied.

Costs were applied based on the system capacity from heating and cooling load calculations in CBECC-Res as presented in Table 4. Air conditioner nominal capacity was calculated as the CBECC-Res cooling load, rounded up to the nearest half ton. Heat pump nominal capacity was calculated as the maximum of either the CBECC-Res heating or cooling load, rounded up to the nearest half ton. In both cases a minimum capacity of 1.5- ton was applied as this represents the typical smallest available split system heat pump equipment. Load calculations revealed that Climate Zones 2 through 15 were coolingdominated, whereas Climate Zones 1 and 16 were heating-dominated. In these heating4 https://www.energy.gov/articles/doe-finalizes-energy-efficiency-standards-residential-furnaces-saveamericans-15- billion#:~:text=These%20furnace%20efficiency%20standards%20were,heat%20for%20the%20livin g%20space.
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Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 15 2025/08/08
dominated zones, the heat pump was upsized compared to an air conditioner designed solely for cooling to ensure adequate heating performance.

Table 4. System Sizing by Climate Zone
Climate
Zone
Air Conditioner
Capacity (tons)
Heat Pump
Capacity (tons)
1 1.5 3.0
2 3.5 3.5
3 2.5 2.5
4 3.5 3.5
5 3.0 3.0
6 3.0 3.0
7 3.0 3.0
8 4.0 4.0
9 4.0 4.0
10 4.0 4.0
11 4.5 4.5
12 4.0 4.0
13 4.5 4.5
14 4.0 4.0
15 5.0 5.0
16 3.5 4.0

2.3.3 Metrics
Cost-effectiveness is presented using net present value (NPV). • NPV: The Reach Codes Team uses net savings (NPV benefits minus NPV costs) as the cost-effectiveness metric. If the net savings of a measure or package is positive, it is considered cost effective. Negative net savings represent net costs to the consumer. A measure that has negative energy cost benefits (energy cost increase) can still be cost effective if the costs to implement the measure are even more negative (i.e., construction and maintenance cost savings).

Improving the energy performance of a building often requires an initial investment. In most cases the benefit is represented by annual On-Bill utility or LSC savings, and the cost by incremental first cost and replacement costs. However, some packages result in initial construction cost savings (negative incremental cost), and either energy cost savings (positive benefits), or increased energy costs (negative benefits). In cases where both construction costs and energy-related savings are negative, the construction cost savings are treated as the benefit while the increased energy costs are the cost. In cases where a measure or package is cost-effective immediately (i.e., upfront construction cost savings and lifetime energy cost savings).
104
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 16 2025/08/08

2.3.4 Utility Rates
In coordination with the CA IOU rates team (comprised of representatives from Pacific Gas and Electric (PG&E), Southern California Edison (SCE) and San Diego Gas and Electric (SDG&E)) and two Publicly-Owned-Utilities (POUs) (Sacramento Municipal Utility District (SMUD) and City of Palo Alto Utilities (CPAU)), the Reach Codes Team determined appropriate utility rates for each climate zone to calculate utility costs and determine On-Bill cost-effectiveness for the proposed measures and packages. The utility tariffs, summarized in Table 5 and Table 6 with details in Section 6.2.26.2.2, were determined based on the appropriate rate for each. Utility rates were applied to each climate zone based on the predominant IOU serving the population of each zone, with a few climate zones evaluated multiple times under different utility scenarios. Climate Zones 10 and 14 were evaluated with both SCE for electricity and Southern California Gas Company (SoCalGas) for gas and SDG&E tariffs for both electricity and gas since each utility has customers within these climate zones. Climate Zone 5 is evaluated under both PG&E and SoCalGas natural gas rates. Two POU or municipal utility rates were also evaluated: SMUD in Climate Zone 12 and CPAU in Climate Zone 4.

First-year utility costs were calculated using hourly electricity and natural gas output from CBECC-Res and applying the utility tariffs summarized in Table 5 and Table 6. Homes with a heat pump in IOU territory are eligible for either the electrification or the standard tariff. Utility costs were calculated under both tariffs with results presented using the one that yielded the lower annual utility cost. The electrification tariff resulted in better utility costs savings when there was high kWh usage, typically in older, less efficient homes. Conversely, newer homes which are more efficient, tend to benefit more under the standard tariff. However, in SCE’s milder climate zones, older homes benefit more under the standard tariff. Annual costs were also estimated for IOU customers eligible for the CARE tariff discounts on both electricity and natural gas bills.

Table 5. Investor-Owned Utility Tariffs Used Based on Climate Zone Climate
Zones
Electric / Gas
Utility
Electricity
Tariff:

Standard
Rate
Electricity
Tariff:

Electrification
Rate
Natural Gas
Tariff
1-5,11-13,16 PG&E / PG&E E-TOU-C E-ELEC G1
5 PG&E / SoCalGas E-TOU-C E-ELEC GR
6, 8-10, 14, 15 SCE / SoCalGas TOU-D-4-9 TOU-D-PRIME GR 7, 10, 14 SDG&E / SDG&E TOU-DR-1 EV-TOU-5 GR
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Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 17 2025/08/08
Table 6. Publicly Owned Utility Tariffs Used Based on Climate Zone Climate
Zones
Electric / Gas Utility
Electricity Tariff: Standard
Rate
Electricity
Tariff:

Electrification
Rate
Natural Gas
Tariff
4 CPAU / CPAU E-1 G1
12 SMUD / PG&E R-TOD G1
Utility rates are assumed to escalate over time. Because it is very difficult to predict how rates will change, two escalation scenarios are presented in this study to represent a range of outcomes. See Appendix 6.3.7 Fuel Escalation Assumptions for details. 1) Modest Gas Escalation: This scenario is based on assumptions from the CPUC 2021 En Banc hearings on utility costs through 2030 (California Public Utilities Commission, 2021a). Escalation rates throughout the remainder of the 30-year evaluation period are based on the escalation rate assumptions within the 2022 Energy Code TDV factors developed by the Energy Commission (California Energy Commission. 2021b).
2) High Gas Escalation: This scenario is based on escalation rates developed by the Energy Commission and used within the 2025 Energy Code LSC factors (LSC replaces TDV in the 2025 Energy Code) which assumed steep increases in gas rates in the latter half of the analysis period.

Electricity tariff structures will evolve over time. Most recently, the CPUC approved an income-graduated fixed charge intended to benefit low-income customers and support electrification measures.5 The IOUs are currently developing tariffs that meet the direction given by the CPUC in this proceeding. These tariffs were not available at the time of this study, but this analysis may be re-evaluated later in 2025 once the rates are finalized. 5 https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/electric-costs/demand-responsedr/demand-flexibility-rulemaking 106
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 18 2025/08/08

2.4 Measure Details and Cost
This section describes the details of the measures and documents incremental costs. All measure costs were obtained from the TECH cost survey and contractor survey unless otherwise noted. These surveys reflect the cost to the customer and include equipment, labor, permit fees, and required HERS testing.

The following heat pump space heater (HPSH) measures were evaluated as described below. All included HERS verified refrigerant charge, 10% duct sealing, and 300 CFM/ton airflow, aligned with the proposed code requirements for the 2025 Title 24 code. 1) Dual Fuel Heat Pump (DFHP Existing Furnace): Replace existing ducted AC with an electric heat pump and install controls to operate the heat pump as the primary space conditioning source and to use the existing gas furnace (78 AFUE) for backup heat when heating demands cannot be met by the heat pump. In this report, dual fuel heat pumps were modeled to disable furnace operation above an outdoor temperature of 35°F in compliance with Energy Code Section 150.0(h)7, which requires this lockout for any heat pump with supplemental heating. A minimum federal efficiency (14.3 SEER2, 11.7 EER2, 7.5 HSPF2) heat pump was evaluated.

Savings are compared to a new AC (14.3 SEER2, 11.7 EER2) alongside the existing furnace (78 AFUE). A new evaporator coil is assumed to be installed with the AC system.
2) HPSH: Replace existing ducted AC and natural gas furnace with an electric heat pump and air handler. Minimum federal efficiency (14.3 SEER2, 11.7 EER2, 7.5 HSPF2) heat pumps were evaluated. Savings are compared to a new ducted natural gas furnace and AC (14.3 SEER2, 11.7 EER2, 80 AFUE).
3) High Efficiency HPSH: Replace existing ducted AC and natural gas furnace with an electric heat pump and air handler. Higher efficiency (17 SEER2, 12.48 EER2, 9.5 HSPF2) heat pumps were evaluated. Savings are compared to a new ducted natural gas furnace and AC (14.3 SEER2, 11.7 EER2, 80 AFUE).

Over the 30-year analysis period, certain changes are assumed when the equipment is replaced that impact both lifetime costs and energy use. Table 7 and Table 8 present the lifetime scenario for the DFHP Existing Furnace and HPSH measures, respectively. The analysis assumed a 20-year effective useful lifetime (EUL) for a furnace, a 15-year EUL for an air conditioner and a 15-year EUL for a heat pump. Lifetimes are based on the Database for Energy Efficient Resources (DEER) (California Public Utilities Commission, 2021b). The existing furnace is assumed to be halfway through its EUL at the beginning of the analysis period. After 10 years when the furnace reaches the end of its life and needs to be replaced, it will be subject to new federal efficiency standards for residential gas furnaces that go into effect in 2028 requiring 95 AFUE6
. Five years later the air conditioner reaches the end of its life and is replaced with a new air conditioner.
6 https://www.energy.gov/articles/doe-finalizes-energy-efficiency-standards-residential-furnaces-saveamericans-15- billion#:~:text=These%20furnace%20efficiency%20standards%20were,heat%20for%20the%20livin g%20space.
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Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 19 2025/08/08
For the DFHP upgrade case, after 10 years when the furnace fails it’s expected that the furnace is abandoned in place since the heat pump serves primary heating and was sized to provide the full design heating load. In this case it is assumed that the fan motor is replaced with a new aftermarket unit and operates another five years until the heat pump fails and is replaced with a new heat pump and air handler. Table 7 through Table 8 present the lifecycle incremental cost breakdown for a 4-ton system. The heat pump is sized for each climate zone based on the heating and cooling load as shown in Table 4, and the 4-ton system was selected as an example to show the lifecycle cost breakdown.

Table 7. Lifecycle Incremental Cost Breakdown for a 4-Ton DFHP Existing Furnace Calendar
Year
Baseline AC
Replacement
Schedule
Baseline
Future
Cost
Baseline
Present
Value
Cost
Heat Pump
Heat
Pump
Future
Cost
Heat
Pump
Present
Value
Cost
2026 AC fails, install new
AC, keep existing
furnace
$10,431 $10,431 AC fails, install new
HP, keep existing
furnace
$12,347 $12,347
2036 Furnace fails, install
new 95AFUE
furnace
$7,879 $5,863 Furnace fails,
replace fan motor
$1,200 $893
2041 AC fails, install new
AC
$10,431 $6,695 HP fails, install new
HP and air handler
$14,529 $9,326
Total $22,989 $22,566
Incremental Cost -$424
Table 8. Lifecycle Incremental Cost Breakdown for 4-Ton HPSH Calendar
Year
Baseline AC
Replacement
Schedule
Baseline Future
Cost
Baseline
Present
Value
Cost
Heat Pump
Heat Pump
Future
Cost
Heat
Pump
Present
Value
Cost
2026 AC fails, install
new AC &
furnace
$13,808 $13,808 AC fails,
install new

HP & AHU
$14,529 $14,529
2041 AC fails, install
new AC
$10,431 $6,695 HP fails,
install new

HP & AHU
$13,529 $8,684
2046 Furnace fails,
install new
95AFUE
furnace
$7,879 $4,363
- - -
2056 Remaining
useful life for
furnace
- -$1,623
- - -
Total $23,243 $23,213
Incremental Cost -$30
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Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 20 2025/08/08
Table 9 presents estimated first and lifetime costs for the baseline and heat pump scenarios for 4-ton equipment. Costs include all material and installation labor including providing new 240 V electrical service to the air handler location for all new air handler installations and decommissioning of the furnace for the cases where the furnace is removed. DFHP costs incorporate controls installation and commissioning to ensure the heat pump and the furnace communicate properly and don’t operate at the same time. Future replacement costs do not include any initial costs associated with 240V electrical service or furnace decommissioning.

Table 9. HVAC Measure Cost Assumptions – 4-Ton Electric Replacements Measure Case
AC +
Evaporator
Coil
Gas
Furnace
/AC
DFHP Existing
Furnace HPSH
High
Efficiency
HPSH
Base Case - - AC +
Evaporator Coil
Gas
Furnace
/AC
Gas
Furnace
/AC
First Cost $10,431 $13,808 $12,347 $14,529 $17,506
Replacement Cost
(Future Value) $18,310 $18,310 $15,729 $13,529 $16,506
Replacement Cost
(Present Value) $12,558 $11,058 $10,219 $8,684 $10,594
Remaining Value at
Year 30 $0 -$1,623 $0 $0 $0
Total Lifecycle Cost $22,989 $23,243 $22,566 $23,213 $28,100 Incremental Cost - - -$424 -$30 $4,857

2.4.1 Lifecycle Cost Assuming Zero-NOx Standards for Space Heating After 2030
The California Air Resource Board proposed a strategy for reducing emissions in their 2022 Scoping Plan for Achieving Carbon Neutrality that includes a zero-emission standard for space and water heaters sold in California that would go into effect in 2030 (California Air Resources Board, 2022).

The South Coast Air Quality Management District (SCAQMD) proposed Rule 1111 for the Reduction of NOx Emissions from Natural Gas-Fired Furnaces. This rule applies to furnaces less than 175,000 Btu/hr and sets compliance goals for manufacturers with the proposed dates in Table 10. The sale of gas furnaces above the compliance target will incur a mitigation fee (SCAQMD, 2025).

Table 10. SCAQMD Rule 1111 Proposed Manufacturer Compliance Targets Target Dates 2027-2028 2029-2032 2033-2035 2036 and after NOx Emitting Units (e.g. gas) 70% 50% 25% 10%
Zero-Emission Units 30% 50% 75% 90%
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Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 21 2025/08/08
The Bay Area Air Quality Management District (BAAD) adopted Rule 9-4 that similarly requires zero NOx standards for space heating systems sold in the Bay Area.

Implementation for residential furnaces will begin January 2029 (BAAD, 2025).

The BAAD Rule 9-4 has been adopted, but both the California Air Resources Board and SCAQMD Rule 1111 are proposed rules that have not yet been adopted, but given the implications these rulings would have on the 30-year cost-effectiveness if gas furnaces were very limited or no longer available in 2030, a sensitivity analysis for this scenario is included in this study for the DFHP Existing Furnace scenario. The other heat pump measures would also be impacted by this ruling; however, for simplicity the team selected one measure to give a sense of the impact on the results. The following costs reflect the scenario where gas furnaces are not available in 2030. This 30-year lifecycle analysis assumes that in 10 years when the furnace reaches the end of its useful life and needs to be replaced, it will be subjected to the SCAQMD Rule 1111 or California Air Resources Board proposal and will be replaced with a heat pump.

Table 11. Lifecycle Incremental Cost Breakdown for 4-Ton System with no Gas Furnaces after 2030
Calendar
Year
Baseline AC
Replacement
Schedule
Baseline
Future
Cost
Baseline
Present
Value
Cost
Heat Pump
Heat
Pump
Future
Cost
Heat
Pump
Present
Value
Cost
2026
AC fails, install new
AC, keep existing
furnace
$10,431 $10,431
AC fails, install new
HP, keep existing
furnace
$12,347 $12,347
2036 Furnace fails, install
new HP $14,529 $10,811 Furnace fails, replace fan motor $1,200 $893 2041 - - - HP fails, install new
HP and air handler $14,529 $9,326
2051 HP fails, install new
HP $13,529 $6,462 - - -
2056 Remaining useful
life for HP - -$4,459 - - -
Total $23,244 $22,566
Incremental Cost -$679
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Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 22 2025/08/08
3 Results
The primary objective of the evaluation is to identify cost-effective HPSH upgrade measures for existing single family buildings, to support the design of local ordinances encouraging installation of a heat pump when replacing an air conditioner. While this section focuses primarily on the results of the cost-effectiveness analysis, it is important to highlight that the associated greenhouse gas (GHG) emissions savings are significant – averaging a 25% annual reduction across the climate zones and vintages. A full dataset of all results, including site energy, source energy, LSC and GHG emissions, can be downloaded at https://localenergycodes.com/content/resources. Results alongside policy options can also be explored using the Cost-effectiveness Explorer at https://explorer.localenergycodes.com/.

3.1 Cost-Effectiveness Results
Table 12 through Table 14 present results across the 16 climate zones for the 1992-2010 vintage using standard tariffs and Table 15 through Table 17 present results across the 16 climate zones and three vintages using CARE tariffs. Results show the incremental cost and utility bill savings for the first year along with cost effectiveness results for LSC and On-Bill under both the modest and high gas escalation scenarios. Results for additional vintages using standard tariffs are in Appendix 6.2 Cost-Effectiveness Results. 111
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 23 2025/08/08

3.1.1 Cost Effectiveness Results Using Standard Tariffs Table 12. [1992-2010] DFHP Existing Furnace
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $2,405 $60 $10,843 $5,471 $21,616
CZ02 PGE $1,670 ($86) $8,462 $2,312 $12,767
CZ03 PGE $1,178 $15 $8,302 $4,810 $13,877
CZ04 PGE $1,670 ($68) $7,396 $1,955 $10,123
CZ04 CPAU $1,670 ($9) $7,396 $2,207 $7,179
CZ05 PGE $1,424 ($12) $6,848 $3,425 $11,150
CZ05 PGE/SCG $1,424 ($195) $6,848 ($1,864) $2,099
CZ06 SCE/SCG $1,424 ($34) $2,647 $675 $1,468
CZ07 SDGE $1,424 ($36) $2,691 $599 $1,734
CZ08 SCE/SCG $1,916 ($65) $2,028 ($662) $311
CZ09 SCE/SCG $1,916 ($90) $2,749 ($1,037) $437
CZ10 SCE/SCG $1,916 ($79) $2,444 ($833) $543
CZ10 SDGE $1,916 $54 $2,444 $2,350 $4,857
CZ11 PGE $2,162 $68 $7,672 $4,713 $14,750
CZ12 PGE $1,916 $44 $8,466 $4,851 $15,371
CZ12 SMUD/PGE $1,916 $353 $8,466 $11,771 $22,513
CZ13 PGE $2,162 $76 $5,318 $3,972 $11,212
CZ14 SCE/SCG $1,916 ($179) $4,803 ($2,215) $1,489
CZ14 SDGE $1,916 ($22) $4,803 $1,431 $7,207
CZ15 SCE/SCG $2,408 ($133) ($122) ($3,289) ($3,060)
CZ16 PGE $2,243 ($66) $8,842 $1,260 $11,982
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Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 24 2025/08/08
Table 13. [1992-2010] Standard Efficiency HPSH
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $3,067 ($145) $10,949 ($34) $17,899
CZ02 PGE $652 ($229) $9,362 ($702) $11,825
CZ03 PGE $514 ($62) $8,244 $2,373 $11,665
CZ04 PGE $652 ($205) $8,680 ($572) $10,753
CZ04 CPAU $652 ($85) $8,680 $556 $7,194
CZ05 PGE $583 ($113) $6,957 $752 $9,206
CZ05 PGE/SCG $583 ($316) $6,957 ($5,101) ($811)
CZ06 SCE/SCG $583 ($37) $2,134 ($63) $716
CZ07 SDGE $583 ($39) $2,156 ($149) $981
CZ08 SCE/SCG $721 ($79) $1,812 ($1,356) ($371)
CZ09 SCE/SCG $721 ($118) $2,589 ($2,038) ($524)
CZ10 SCE/SCG $721 ($103) $2,311 ($1,723) ($259)
CZ10 SDGE $721 $34 $2,311 $1,533 $4,218
CZ11 PGE $790 ($35) $8,817 $2,833 $14,504
CZ12 PGE $721 ($94) $9,199 $1,812 $13,563
CZ12 SMUD/PGE $721 $363 $9,199 $12,027 $24,107
CZ13 PGE $790 $6 $5,948 $2,558 $10,687
CZ14 SCE/SCG $721 ($412) $6,635 ($6,964) ($1,073)
CZ14 SDGE $721 ($107) $6,635 $166 $10,249
CZ15 SCE/SCG $859 ($139) ($112) ($3,434) ($3,186)
CZ16 PGE $2,095 ($385) $13,600 ($2,842) $19,424
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Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 25 2025/08/08
Table 14. [1992-2010] High Efficiency HPSH
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $5,998 $56 $9,783 ($350) $17,727
CZ02 PGE $3,606 ($94) $7,527 ($2,544) $10,080
CZ03 PGE $3,422 $59 $5,701 $312 $9,692
CZ04 PGE $3,606 ($61) $6,961 ($2,193) $9,235
CZ04 CPAU $3,606 $0 $6,961 ($2,389) $4,310
CZ05 PGE $3,514 $4 $4,176 ($1,450) $7,088
CZ05 PGE/SCG $3,514 ($199) $4,176 ($7,303) ($2,929)
CZ06 SCE/SCG $3,514 ($14) ($2,162) ($4,367) ($3,567)
CZ07 SDGE $3,514 ($12) ($2,090) ($4,312) ($3,191)
CZ08 SCE/SCG $3,698 $13 ($1,660) ($4,217) ($3,149)
CZ09 SCE/SCG $3,698 ($26) ($750) ($4,883) ($3,284)
CZ10 SCE/SCG $3,698 ($4) ($844) ($4,418) ($2,864)
CZ10 SDGE $3,698 $132 ($844) ($1,068) $1,587
CZ11 PGE $3,789 $186 $7,738 $2,845 $14,675
CZ12 PGE $3,698 $88 $7,575 $996 $12,879
CZ12 SMUD/PGE $3,698 $422 $7,575 $8,459 $20,580
CZ13 PGE $3,789 $208 $4,419 $2,165 $10,439
CZ14 SCE/SCG $3,698 ($219) $5,760 ($7,575) ($1,506)
CZ14 SDGE $3,698 $77 $5,760 ($424) $9,604
CZ15 SCE/SCG $3,881 $50 ($2,144) ($4,209) ($3,786)
CZ16 PGE $5,071 ($97) $14,557 ($1,291) $21,181
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3.1.2 Cost Effectiveness Results Using CARE Tariffs
Table 15. [1992-2010] DFHP Existing Furnace CARE
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $2,405 $153 $10,843 $6,436 $19,266
CZ02 PGE $1,670 $18 $8,462 $3,916 $12,233
CZ03 PGE $1,178 $73 $8,302 $5,493 $12,696
CZ04 PGE $1,670 $14 $7,396 $3,217 $9,716
CZ04 CPAU $1,670 $0 $7,396 $786 $786
CZ05 PGE $1,424 $47 $6,848 $4,198 $10,337
CZ05 PGE/SCG $1,424 ($98) $6,848 $23 $3,191
CZ06 SCE/SCG $1,424 ($18) $2,647 $967 $1,600
CZ07 SDGE $1,424 ($16) $2,691 $1,000 $1,887
CZ08 SCE/SCG $1,916 ($38) $2,028 ($136) $644
CZ09 SCE/SCG $1,916 ($52) $2,749 ($301) $879
CZ10 SCE/SCG $1,916 ($45) $2,444 ($182) $920
CZ10 SDGE $1,916 $51 $2,444 $2,147 $4,112
CZ11 PGE $2,162 $115 $7,672 $5,068 $13,039
CZ12 PGE $1,916 $103 $8,466 $5,436 $13,792
CZ12 SMUD/PGE $1,916 $418 $8,466 $12,488 $21,071
CZ13 PGE $2,162 $100 $5,318 $4,013 $9,760
CZ14 SCE/SCG $1,916 ($98) $4,803 ($700) $2,268
CZ14 SDGE $1,916 $23 $4,803 $2,156 $6,677
CZ15 SCE/SCG $2,408 ($88) ($122) ($2,307) ($2,111)
CZ16 PGE $2,243 $33 $8,842 $2,737 $11,267
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Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 27 2025/08/08
Table 16. [1992-2010] Standard Efficiency HPSH CARE
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $3,067 $33 $10,949 $2,703 $16,973
CZ02 PGE $652 ($59) $9,362 $2,211 $12,188
CZ03 PGE $514 $25 $8,244 $3,685 $11,074
CZ04 PGE $652 ($53) $8,680 $2,048 $11,067
CZ04 CPAU $652 $0 $8,680 $255 $255
CZ05 PGE $583 ($13) $6,957 $2,389 $9,117
CZ05 PGE/SCG $583 ($173) $6,957 ($2,232) $1,208
CZ06 SCE/SCG $583 ($20) $2,134 $249 $872
CZ07 SDGE $583 ($18) $2,156 $279 $1,161
CZ08 SCE/SCG $721 ($47) $1,812 ($728) $62
CZ09 SCE/SCG $721 ($70) $2,589 ($1,094) $122
CZ10 SCE/SCG $721 ($61) $2,311 ($892) $281
CZ10 SDGE $721 $39 $2,311 $1,509 $3,612
CZ11 PGE $790 $60 $8,817 $4,141 $13,421
CZ12 PGE $721 $22 $9,199 $3,592 $12,940
CZ12 SMUD/PGE $721 $471 $9,199 $13,622 $23,292
CZ13 PGE $790 $61 $5,948 $3,234 $9,693
CZ14 SCE/SCG $721 ($241) $6,635 ($3,632) $1,098
CZ14 SDGE $721 ($5) $6,635 $1,996 $9,885
CZ15 SCE/SCG $859 ($91) ($112) ($2,414) ($2,201)
CZ16 PGE $2,095 ($92) $13,600 $2,163 $19,892
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Table 17. [1992-2010] High Efficiency HPSH CARE
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $5,998 $164 $9,783 $813 $15,177
CZ02 PGE $3,606 $28 $7,527 ($683) $9,357
CZ03 PGE $3,422 $104 $5,701 $674 $8,120
CZ04 PGE $3,606 $41 $6,961 ($703) $8,383
CZ04 CPAU $3,606 $0 $6,961 ($4,595) ($4,595)
CZ05 PGE $3,514 $62 $4,176 ($727) $6,056
CZ05 PGE/SCG $3,514 ($98) $4,176 ($5,348) ($1,853)
CZ06 SCE/SCG $3,514 ($5) ($2,162) ($4,219) ($3,583)
CZ07 SDGE $3,514 ($0) ($2,090) ($4,112) ($3,235)
CZ08 SCE/SCG $3,698 $15 ($1,660) ($4,248) ($3,401)
CZ09 SCE/SCG $3,698 ($8) ($750) ($4,603) ($3,330)
CZ10 SCE/SCG $3,698 $6 ($844) ($4,300) ($3,065)
CZ10 SDGE $3,698 $103 ($844) ($1,892) $191
CZ11 PGE $3,789 $203 $7,738 $2,425 $11,808
CZ12 PGE $3,698 $141 $7,575 $1,351 $10,784
CZ12 SMUD/PGE $3,698 $471 $7,575 $8,735 $18,405
CZ13 PGE $3,789 $192 $4,419 $1,255 $7,809
CZ14 SCE/SCG $3,698 ($111) $5,760 ($5,632) ($783)
CZ14 SDGE $3,698 $115 $5,760 ($98) $7,755
CZ15 SCE/SCG $3,881 $36 ($2,144) ($4,549) ($4,220)
CZ16 PGE $5,071 $95 $14,557 $1,460 $19,324

3.2 Zero-NOx Scenario Results
This section presents cost-effectiveness results for the DFHP Existing Furnace under the scenario where proposed air quality district zero-NOx rules go into effect over the next 10 years. In the base case, at time of replacement of the gas furnace at year 10 a heat pump is installed. The energy profile between the base case and the heat pump upgrade case are subsequently identical for the remaining 20 years of the 30-year analysis period. As a result, energy and cost savings only persist for the first 10 years.

Table 18 shows the On-Bill NPV cost-effectiveness results assuming high gas escalation.

The high gas escalation was used for the zero-NOx analysis because the high gas escalation is built on the assumption that gas furnaces are no longer available to be installed due to zero-NOx regulations or similar policies. Table 19 shows the LSC costeffectiveness results for all three vintages. 2025 LSC savings were calculated using individual year multipliers for the first 10 years, 2026 through 2035. 117
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 29 2025/08/08
Table 18. DFHP Existing Furnace On-Bill NPV with High Gas Escalation (Zero-NOx Rule) Climate
Zone
Electric/
Gas Utility
On-Bill NPV
Pre-1978 1978-1991 1992-2010
CZ01 PGE $5,473 $4,136 $2,349
CZ02 PGE $1,785 $1,031 $1,101
CZ03 PGE $2,863 $2,097 $2,052
CZ04 PGE $2,133 $1,162 $1,019
CZ04 CPAU $2,340 $1,599 $1,213
CZ05 PGE $1,918 $1,486 $1,576
CZ05 PGE/SCG ($1,308) ($834) ($491)
CZ06 SCE/SCG $401 $605 $635
CZ07 SDGE $1,473 $999 $641
CZ08 SCE/SCG ($125) $99 $195
CZ09 SCE/SCG ($563) ($183) $22
CZ10 SCE/SCG ($259) $53 $110
CZ10 SDGE $2,985 $2,261 $1,430
CZ11 PGE $3,287 $2,866 $2,279
CZ12 PGE $2,935 $2,578 $2,202
CZ12 SMUD/PGE $7,877 $5,978 $5,040
CZ13 PGE $2,927 $2,556 $2,053
CZ14 SCE/SCG ($864) ($943) ($543)
CZ14 SDGE $2,204 $1,655 $1,064
CZ15 SCE/SCG $1,338 $396 ($688)
CZ16 PGE $1,192 $1,071 $1,096
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Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 30 2025/08/08
Table 19. DFHP Existing Furnace LSC Savings (Zero-NOx Rule) Climate
Zone
Electric/
Gas Utility

LSC NPV
Pre-1978 1978-1991 1992-2010
CZ01 PGE $3,019 $2,510 $1,558
CZ02 PGE $1,256 $1,025 $1,006
CZ03 PGE $1,460 $1,120 $1,036
CZ04 PGE $1,242 $949 $887
CZ04 CPAU $1,242 $949 $887
CZ05 PGE $1,127 $816 $820
CZ05 PGE/SCG $1,127 $816 $820
CZ06 SCE/SCG $545 $318 $251
CZ07 SDGE $639 $403 $314
CZ08 SCE/SCG $428 $279 $244
CZ09 SCE/SCG $608 $424 $372
CZ10 SCE/SCG $469 $320 $293
CZ10 SDGE $469 $320 $293
CZ11 PGE $1,871 $1,475 $1,263
CZ12 PGE $1,924 $1,539 $1,356
CZ12 SMUD/PGE $1,375 $1,090 $939
CZ13 PGE ($206) ($186) $50
CZ14 SCE/SCG ($206) ($186) $50
CZ14 SDGE $127 $60 $38
CZ15 SCE/SCG ($185) ($12) $77
CZ16 PGE $3,019 $2,510 $1,558

3.3 AC Pathways for Heat Pump Replacements
Many jurisdictions are interested in seeing alternative pathways for residents who may prefer to replace an air conditioner with similar equipment, rather than migrating to a heat pump system. Alternative packages analyzed to support this request include air conditioning equipment combined with additional efficiency measures resulting in options that are reasonably energy or LSC cost equivalent to a heat pump system, to the extent feasible.

Figure 1 shows two AC pathways, one with an existing duct system and another path with a new duct system, alongside the heat pump pathways. The figure presents the proposed efficiency upgrade measures that would be part of a reach code (solid blue) along with the relevant requirements from Title 24, Part 6 that are triggered as part of equipment replacements (white or gradient blue). A reach code that establishes requirements when an air conditioner is replaced or installed new could allow for either a heat pump to be installed or an AC as long as the performance measures listed below are met. 119
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 31 2025/08/08
Figure 1. AC vs. Heat Pump Pathway Requirements
The heat pump only and two AC pathways are presented in Figure 2 comparing total LSC energy use relative to the existing home for the 1992-2010 vintage. The heat pump path is represented by the DFHP Existing Furnace scenario. In most climate zones, the heat pump path results in higher energy savings, in the milder climates the AC and new ducts and New AC Only paths save marginally more energy.

Figure 2. AC vs. Heat Pump Energy Comparison
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Though the AC path does not need to meet cost-effectiveness criteria to be adopted as a reach code since it’s an alternative path, in order to understand the implications of the AC path on the customer, Table 20 and Table 21 present estimated costs for the new AC only and the new AC + new ducts paths respectively.

Table 20. New AC Only Path Cost Estimates
New AC Only Path Pre-1978 1978-1991 1992-2010
Fan Efficacy: 0.45 W/CFM - - -
Refrigerant Charge Verification $100 $100 $1007
R-49 Attic Insulation $5,483 $3,612 $1,827
Air Sealing $1,963 $1,963 $1,963
Total $7,546 $5,675 $3,790
Table 21. New AC/Furnace and New Ducts Path Cost Estimates New AC and New Ducts Path Pre-1978 1978-1991 1992-2010
New R-8 Ducts $6,311 $6,311 $6,311
Furnace $5,951 $5,951 $5,951
Fan Efficacy: 0.35 W/CFM $500 $500 $500
Refrigerant Charge Verification $100 $100 $100
Total $12,862 $12,862 $12,862
7 This is an incremental cost and in some climate zones, refrigerant charge verification is required so there is no incremental cost added.
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4 Recommendations and Discussion
This analysis evaluated the feasibility and cost-effectiveness of AC to heat pump measures in California existing homes built before 2010. To meet the needs of jurisdictions evaluating this option, Statewide Reach Codes Team used both On-Bill and LSC-based lifecycle cost approaches to evaluate cost-effectiveness and quantify the energy cost savings associated with energy efficiency measures compared to the incremental costs associated with the measures.

Conclusions and Discussion:

1. Heat pumps are significantly more efficient than gas furnaces, requiring less than half the energy to meet the heating load. However, despite this reduction in heating energy use, the cost of heating a home using electricity (heat pump) could be higher than the cost to heat that same home with natural gas (furnace), depending on the electricity tariffs relative to the gas tariffs. Therefore, while a heat pump measure could be deemed as cost-effective over its lifecycle, installing a heat pump could result in a decrease or an increase in utility costs in the first years relative to a gas furnace and AC system. For example, the heat pump space heater measure in climate zone 12 in the newest vintage results in the customer saving money on their utility bill in SMUD territory but paying more on their utility bill in PG&E territory. Both PG&E and SMUD territory use PG&E gas rates, but SMUD has lower electricity rates than PG&E. With fuel switching measures like the AC to HP measure, the electricity to gas ratio has a significant impact on the savings or costs the customer will see by switching from gas to an electric heat pump space heater.

2. The LSC metric most often produces more favorable cost-effectiveness results relative to the results produced using actual utility costs (On-Bill). When the analysis assumes a higher escalation rate for natural gas costs relative to electricity in future years (high gas escalation), the On-Bill results are more favorable in some cases. a. In the oldest (pre-1978) vintage, all three measures (dual fuel heat pump with existing furnace, standard heat pump space heater, and high efficiency heat pump space heater) are cost-effective using the LSC metric in all climate zones. When using the On-Bill metric, the measures remain cost-effective in most climate zones.
b. In the newer (1978-1991 and 1992-2010) vintages, the dual fuel heat pump (DFHP Existing Furnace) and the standard efficiency HPSH are cost-effective based on LSC in all cases except for Climate Zone 15 when using both the standard and California Alternative Rates for Energy (CARE) tariff.

3. Using the CARE tariff results in higher cost savings and cost-effectiveness relative to standard rates, with almost all cases yielding first year utility cost savings. The DFHP Existing Furnace is On-Bill cost-effective based on the high gas escalation scenario in all cases in the pre-1978 vintage, and almost all cases in the 1978-1991 and 1992-2010 vintage. It is also On-Bill cost-effective in most climate zones for the 122
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 34 2025/08/08
modest gas escalation scenario across all vintages. In Climate Zones 5, 8, 9, 10, 14, and 15, cost-effectiveness declines relative to other areas, and in some cases is not cost-effective from an On-Bill perspective. This is the case for both the CARE tariff and the standard rate.

4. The analysis also modeled the cost impact of using a standard time-of-use electricity tariff versus switching to a newer electrification tariff, designed to reduce costs in homes with heat pumps and/or electric vehicles. Older homes tend to be the least efficient and achieve the most savings from improving equipment efficiency. In most of the state, because older homes tend to use more electricity than a similarly sized, newer vintage home, they realize more costs savings under the electrification tariff.

Newer homes tend to use less electricity and therefore do not realize the same cost savings from switching tariffs; they generally perform better under the standard tariff.

This trend is different in milder climate zones in SCE territory (excluding CZ 15), where newer homes realize more cost savings than older homes. Both the standard and electrification tariffs in SCE territory include a daily allocation of lower-cost baseline electricity and a second, higher-priced tier when the baseline is exceeded.

In many newer homes, a higher percentage of overall electricity use is within the baseline allocation, resulting in greater cost savings.

5. Higher efficiency equipment reduces utility costs in all cases and improves costeffectiveness in many climate zones in the oldest vintage relative to standard efficiency equipment. However, in more efficient newer homes, where costeffectiveness is generally lower, the savings are insufficient to offset the roughly $3,000 increase in incremental cost.

6. Given the adopted Bay Area Air Quality Management District Zero NOx rule, and the proposed California Air Resource Board or South Coast Air Quality Management District (SCAQMD) Zero-NOx rules, and gas furnaces may not be available to be installed in 2030, a sensitivity analysis was performed for the Zero NOx scenario and found that cost-effectiveness decreases in many cases except in Climate Zone 15.

The improved cost-effectiveness is due to the higher baseline cost when HPSH must be installed at year 10 when the furnace must be replaced. It is also important to note that Climate Zone 15 is the only climate zone that utilizes a 5-ton HPSH, which has a much higher cost than the smaller sized systems, resulting in costeffectiveness improvements under the Zero-Nox rules.

7. While not evaluated in this report, the 2022 Single Family Retrofit Cost-effectiveness Study (Statewide Reach Codes Team, 2024) shows it is beneficial to combine a heat pump space conditioning system with photovoltaics (PV) because the additional electricity required by the heat pump can be met by the PV system and result in reduced utility bills.

8. In this study the dual fuel heat pump is evaluated with an existing furnace, however the homeowner could choose to replace the existing furnace with a new furnace at this time as well. This measure (DFHP New Furnace) was evaluated in the 2022 123
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 35 2025/08/08
Single Family Retrofit Cost-effectiveness Study (Statewide Reach Codes Team, 2024) but found to be less cost-effective than the DFHP Existing Furnace case. 124
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 36 2025/08/08
5 References
BAAD. (2025, May 7). Rules 9-4 and 9-6 Building Appliances. Retrieved from Bay Area Air District: https://www.baaqmd.gov/en/rules-and-compliance/ruledevelopment/building-appliances California Air Resources Board. (2022, August 12). 2022 State Strategy for the State Implementation Plan (2022 State SIP Strategy). Retrieved from California Air Resources Board Web site: https://ww2.arb.ca.gov/sites/default/files/2022- 11/Proposed_2022_State_SIP_Strategy.pdf
California Energy Commission. (2017). Rooftop Solar PV System. Measure number: 2019- Res-PV-D Prepared by Energy and Environmental Economics, Inc. Retrieved from https://efiling.energy.ca.gov/getdocument.aspx?tn=221366 California Energy Commission. (2021b). Final Express Terms for the Proposed Revisions to the 2022 Energy Code Reference Appendices. Retrieved from https://efiling.energy.ca.gov/Lists/DocketLog.aspx?docketnumber=21-BSTD-01 California Energy Commission. (2023). 2025 Energy code Hourly Factors. Retrieved from https://www.energy.ca.gov/files/2025-energy-code-hourly-factors California Energy Commission. (2023). Draft 2025 Energy Code Express Terms. Retrieved from
https://efiling.energy.ca.gov/GetDocument.aspx?tn=252915&DocumentContentId=88 051
California Energy Commission. (2025). Final Express Terms for the Proposed Revisions to 2025 Title 24, Part 11 (CALGreen). Retrieved from
https://efiling.energy.ca.gov/GetDocument.aspx?tn=261229&DocumentContentId=97 592
California Public Utilities Commission. (2021a). Utility Costs and Affordability of the Grid of the Future: An Evaluation of Electric Costs, Rates, and Equity Issues Pursuant to P.U. Code Section 913.1. Retrieved from https://www.cpuc.ca.gov/-/media/cpucwebsite/divisions/office-of-governmental-affairs-division/reports/2021/senate-bill-695- report-2021-and-en-banc-whitepaper_final_04302021.pdf
California Public Utilities Commission. (2021b). Database for Energy-Efficient resources (DEER2021 Update). Retrieved April 13, 2021, from
http://www.deeresources.com/index.php/deer-versions/deer2021 Department of Energy. (2023). DOE Finalizes Energy Efficiency Standards for Residential Furnaces to Save Americans $1.5 Billion In Annual Utility Bills. Retrieved from www.energy.gov: https://www.energy.gov/articles/doe-finalizes-energy-efficiencystandards-residential-furnaces-save-americans-15-billion 125
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 37 2025/08/08
E-CFR. (2020). https://www.ecfr.gov/cgibin/retrieveECFR?gp=&SID=8de751f141aaa1c1c9833b36156faf67&mc=true&n=pt1

0.3.431&r=PART&ty=HTML#se10.3.431_197. Retrieved from Electronic Code of Federal Regulations: https://www.ecfr.gov/cgibin/retrieveECFR?gp=&SID=8de751f141aaa1c1c9833b36156faf67&mc=true&n=pt1

0.3.431&r=PART&ty=HTML#se10.3.431_197
Heinemeier, K. (2025). Residential HVAC Performance. Retrieved from https://title24stakeholders.com/wp-content/uploads/2025/03/Residential-HVACPerformance.pdf SCAQMD. (2025). Proposed Amended Rules (PAR) 1111 and 1121. Retrieved from aqmd.gov.

SCAQMD. (2025, February 21). Space and Water Heating Building Appliances. Retrieved from South Coast AQMD: https://www.aqmd.gov/docs/defaultsource/Agendas/ssc/ssc-agenda-2-21-2025.pdf Statewide CASE Team. (2023). Multifamily Domestic Hot Water. Retrieved from https://title24stakeholders.com/wp-content/uploads/2023/08/2025_T24_CASEReport-_MF-DHW-Final-1.pdf Statewide CASE Team. (2023). Residential HVAC PErformance. Retrieved from https://title24stakeholders.com/wpcontent/uploads/2023/11/Revised_2025_T24_Final-CASE-Report-RES-HVACPerformance.pdf Statewide Reach Codes Team. (2021). 2019 Cost-Effectiveness Study: Existing Single Family Residential Buidling Upgrades. Retrieved from
https://localenergycodes.com/content/resources
Statewide Reach Codes Team. (2024). 2022 Cost-Effectiveness Study: Existing Single Family Building Upgrades. Prepared by Frontier Energy. Retrieved from https://localenergycodes.com/download/1222/file_path/fieldList/Single%20Family%2 0Retrofits%20CostEff%20Report.pdf
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Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 38 2025/08/08
6 Appendices

6.1 Map of California Climate Zones
Climate zone geographical boundaries are depicted in Figure 3. The map in Figure 3 along with a zip-code search directory is available at:
https://ww2.energy.ca.gov/maps/renewable/building_climate_zones.html Figure 3. Map of California climate zones.
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Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 39 2025/08/08

6.2 Cost-Effectiveness Results

6.2.1 Standard Rates
The following tables present results across the 16 climate zones for the pre-1978 (Table 22 through Table 24) and the 1978-1991 (Table 25 through Table 27) vintages supplementing the results in Section 3.

Table 22. [Pre-1978] DFHP Existing Furnace
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $2,405 $155 $25,223 $14,524 $51,831
CZ02 PGE $1,670 ($81) $11,625 $4,391 $20,880
CZ03 PGE $1,178 $39 $11,599 $7,167 $21,825
CZ04 PGE $1,670 ($7) $10,648 $5,023 $18,395
CZ04 CPAU $1,670 $63 $10,648 $5,251 $14,605
CZ05 PGE $1,424 ($29) $9,462 $4,574 $16,955
CZ05 PGE/SCG $1,424 ($314) $9,462 ($3,674) $2,838
CZ06 SCE/SCG $1,424 ($70) $4,223 $179 $1,795
CZ07 SDGE $1,424 $41 $4,278 $2,725 $5,055
CZ08 SCE/SCG $1,916 ($111) $3,365 ($1,358) $524
CZ09 SCE/SCG $1,916 ($168) $4,387 ($2,351) $274
CZ10 SCE/SCG $1,916 ($133) $3,904 ($1,625) $923
CZ10 SDGE $1,916 $201 $3,904 $6,324 $10,832
CZ11 PGE $2,162 $93 $12,045 $7,668 $25,025
CZ12 PGE $1,916 $46 $12,451 $7,097 $24,339
CZ12 SMUD/PGE $1,916 $584 $12,451 $19,146 $36,775
CZ13 PGE $2,162 $112 $8,254 $6,448 $18,815
CZ14 SCE/SCG $1,916 ($244) $6,795 ($2,777) $3,481
CZ14 SDGE $1,916 $65 $6,795 $4,352 $13,446
CZ15 SCE/SCG $2,408 $80 $550 $1,655 $2,681
CZ16 PGE $2,243 ($199) $17,538 $2,333 $25,276
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Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 40 2025/08/08
Table 23. [Pre-1978] Standard Efficiency HPSH
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $3,067 ($127) $27,155 $7,800 $48,445
CZ02 PGE $652 ($242) $13,342 $1,420 $21,282
CZ03 PGE $514 ($46) $11,946 $4,614 $19,670
CZ04 PGE $652 ($139) $13,059 $3,274 $21,888
CZ04 CPAU $652 ($48) $13,059 $3,194 $15,372
CZ05 PGE $583 ($131) $9,998 $2,045 $15,648
CZ05 PGE/SCG $583 ($449) $9,998 ($7,152) ($94)
CZ06 SCE/SCG $583 ($76) $3,860 ($652) $931
CZ07 SDGE $583 $35 $3,876 $1,901 $4,218
CZ08 SCE/SCG $721 ($128) $3,305 ($2,112) ($199)
CZ09 SCE/SCG $721 ($219) $4,415 ($3,839) ($1,141)
CZ10 SCE/SCG $721 ($188) $3,982 ($3,168) ($483)
CZ10 SDGE $721 $166 $3,982 $5,200 $10,049
CZ11 PGE $790 ($74) $14,045 $4,727 $24,836
CZ12 PGE $721 ($179) $13,850 $2,374 $21,622
CZ12 SMUD/PGE $721 $601 $13,850 $19,845 $39,654
CZ13 PGE $790 ($14) $9,394 $3,998 $17,858
CZ14 SCE/SCG $721 ($450) $10,103 ($6,294) $4,015
CZ14 SDGE $721 ($66) $10,103 $2,757 $18,994
CZ15 SCE/SCG $859 $68 $643 $1,364 $2,430
CZ16 PGE $2,095 ($484) $27,492 $2,918 $49,419
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Table 24. [Pre-1978] High Efficiency HPSH
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $5,998 $249 $30,518 $11,401 $52,316
CZ02 PGE $3,606 ($24) $13,354 $1,431 $21,449
CZ03 PGE $3,422 $100 $10,768 $3,122 $18,282
CZ04 PGE $3,606 $118 $13,537 $4,185 $22,984
CZ04 CPAU $3,606 $101 $13,537 $1,665 $13,950
CZ05 PGE $3,514 $10 $8,416 $384 $14,087
CZ05 PGE/SCG $3,514 ($308) $8,416 ($8,814) ($1,654)
CZ06 SCE/SCG $3,514 $3 $380 ($3,709) ($2,052)
CZ07 SDGE $3,514 $114 $430 ($1,063) $1,230
CZ08 SCE/SCG $3,698 $31 $1,065 ($3,478) ($1,420)
CZ09 SCE/SCG $3,698 ($40) $2,358 ($4,759) ($1,897)
CZ10 SCE/SCG $3,698 $6 $2,191 ($3,746) ($882)
CZ10 SDGE $3,698 $344 $2,191 $4,481 $9,276
CZ11 PGE $3,789 $283 $15,614 $7,801 $28,167
CZ12 PGE $3,698 $152 $14,490 $4,899 $24,385
CZ12 SMUD/PGE $3,698 $708 $14,490 $17,350 $37,236
CZ13 PGE $3,789 $326 $10,164 $6,697 $20,802
CZ14 SCE/SCG $3,698 ($173) $11,876 ($5,041) $5,522
CZ14 SDGE $3,698 $244 $11,876 $5,111 $21,254
CZ15 SCE/SCG $3,881 $335 $393 $2,323 $3,635
CZ16 PGE $5,071 $45 $34,043 $9,856 $56,737
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Table 25. [1978-1991] DFHP Existing Furnace
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $2,405 $99 $20,184 $10,746 $40,368
CZ02 PGE $1,670 ($114) $9,216 $2,259 $14,435
CZ03 PGE $1,178 $3 $8,952 $5,020 $15,543
CZ04 PGE $1,670 ($68) $8,234 $2,394 $11,893
CZ04 CPAU $1,670 $18 $8,234 $3,236 $9,492
CZ05 PGE $1,424 ($32) $7,070 $3,268 $11,902
CZ05 PGE/SCG $1,424 ($238) $7,070 ($2,666) $1,747
CZ06 SCE/SCG $1,424 ($39) $2,941 $614 $1,557
CZ07 SDGE $1,424 $1 $3,046 $1,512 $2,837
CZ08 SCE/SCG $1,916 ($78) $2,294 ($877) $294
CZ09 SCE/SCG $1,916 ($116) $3,127 ($1,506) $271
CZ10 SCE/SCG $1,916 ($89) $2,755 ($947) $720
CZ10 SDGE $1,916 $139 $2,755 $4,470 $7,469
CZ11 PGE $2,162 $103 $9,192 $6,313 $18,851
CZ12 PGE $1,916 $60 $9,753 $5,919 $18,655
CZ12 SMUD/PGE $1,916 $430 $9,753 $14,208 $27,211
CZ13 PGE $2,162 $111 $6,312 $5,317 $14,322
CZ14 SCE/SCG $1,916 ($230) $5,080 ($3,128) $1,188
CZ14 SDGE $1,916 $35 $5,080 $2,942 $9,420
CZ15 SCE/SCG $2,408 ($17) $50 ($658) ($161)
CZ16 PGE $2,243 ($161) $14,397 $1,740 $20,318
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Table 26. [1978-1991] Standard Efficiency HPSH
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $3,067 ($128) $21,427 $5,043 $37,346
CZ02 PGE $652 ($235) $10,428 ($90) $14,711
CZ03 PGE $514 ($67) $8,999 $2,767 $13,608
CZ04 PGE $652 ($164) $9,984 $1,062 $14,605
CZ04 CPAU $652 ($66) $9,984 $1,535 $9,914
CZ05 PGE $583 ($132) $7,290 $703 $10,264
CZ05 PGE/SCG $583 ($361) $7,290 ($5,939) ($1,104)
CZ06 SCE/SCG $583 ($43) $2,450 ($151) $775
CZ07 SDGE $583 ($3) $2,539 $747 $2,065
CZ08 SCE/SCG $721 ($96) $2,111 ($1,658) ($472)
CZ09 SCE/SCG $721 ($152) $3,022 ($2,659) ($831)
CZ10 SCE/SCG $721 ($121) $2,672 ($2,017) ($239)
CZ10 SDGE $721 $114 $2,672 $3,568 $6,801
CZ11 PGE $790 ($46) $10,682 $3,545 $18,156
CZ12 PGE $721 ($110) $10,747 $2,278 $16,574
CZ12 SMUD/PGE $721 $445 $10,747 $14,697 $29,392
CZ13 PGE $790 $1 $7,141 $3,112 $13,232
CZ14 SCE/SCG $721 ($398) $7,556 ($6,191) $1,058
CZ14 SDGE $721 ($53) $7,556 $1,909 $13,834
CZ15 SCE/SCG $859 ($25) $71 ($848) ($322)
CZ16 PGE $2,095 ($445) $22,236 $708 $37,873
132
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 44 2025/08/08
Table 27. [1978-1991] High Efficiency HPSH
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $5,998 $169 $23,092 $6,895 $39,412
CZ02 PGE $3,606 ($75) $9,242 ($1,370) $13,547
CZ03 PGE $3,422 $53 $6,872 $675 $11,602
CZ04 PGE $3,606 $26 $9,114 $463 $14,143
CZ04 CPAU $3,606 $43 $9,114 ($868) $7,590
CZ05 PGE $3,514 ($16) $4,859 ($1,522) $8,122
CZ05 PGE/SCG $3,514 ($246) $4,859 ($8,164) ($3,246)
CZ06 SCE/SCG $3,514 ($1) ($1,546) ($4,024) ($3,059)
CZ07 SDGE $3,514 $47 ($1,407) ($2,879) ($1,576)
CZ08 SCE/SCG $3,698 $37 ($828) ($3,608) ($2,300)
CZ09 SCE/SCG $3,698 ($17) $232 ($4,573) ($2,623)
CZ10 SCE/SCG $3,698 $20 $82 ($3,764) ($1,856)
CZ10 SDGE $3,698 $251 $82 $1,869 $5,060
CZ11 PGE $3,789 $259 $10,685 $5,452 $20,283
CZ12 PGE $3,698 $138 $10,023 $2,954 $17,430
CZ12 SMUD/PGE $3,698 $525 $10,023 $11,609 $26,363
CZ13 PGE $3,789 $289 $6,612 $4,624 $14,951
CZ14 SCE/SCG $3,698 ($188) $7,697 ($6,429) $1,012
CZ14 SDGE $3,698 $182 $7,697 $2,525 $14,378
CZ15 SCE/SCG $3,881 $193 ($1,111) ($992) ($267)
CZ16 PGE $5,071 ($30) $26,407 $5,118 $42,581
133
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 45 2025/08/08

6.2.2 CARE tariffs
Table 28. [Pre-1978] DFHP Existing Furnace CARE
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $2,405 $364 $25,223 $16,641 $46,300
CZ02 PGE $1,670 $64 $11,625 $6,507 $19,628
CZ03 PGE $1,178 $128 $11,599 $8,167 $19,817
CZ04 PGE $1,670 $90 $10,648 $6,273 $16,909
CZ04 CPAU $1,670 $0 $10,648 $786 $786
CZ05 PGE $1,424 $69 $9,462 $5,901 $15,746
CZ05 PGE/SCG $1,424 ($157) $9,462 ($613) $4,598
CZ06 SCE/SCG $1,424 ($37) $4,223 $776 $2,067
CZ07 SDGE $1,424 $42 $4,278 $2,609 $4,434
CZ08 SCE/SCG $1,916 ($63) $3,365 ($446) $1,060
CZ09 SCE/SCG $1,916 ($97) $4,387 ($983) $1,121
CZ10 SCE/SCG $1,916 ($75) $3,904 ($511) $1,528
CZ10 SDGE $1,916 $160 $3,904 $5,112 $8,649
CZ11 PGE $2,162 $183 $12,119 $8,564 $22,361
CZ12 PGE $1,916 $152 $12,451 $8,275 $21,982
CZ12 SMUD/PGE $1,916 $686 $12,451 $20,229 $34,321
CZ13 PGE $2,162 $160 $8,329 $6,744 $16,567
CZ14 SCE/SCG $1,916 ($126) $6,795 ($630) $4,382
CZ14 SDGE $1,916 $101 $6,795 $4,679 $11,801
CZ15 SCE/SCG $2,408 $60 $550 $1,131 $1,937
CZ16 PGE $2,243 $34 $17,538 $5,963 $24,236
134
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 46 2025/08/08
Table 29. [Pre-1978] Standard Efficiency HPSH CARE
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $3,067 $205 $27,155 $12,440 $44,777
CZ02 PGE $652 ($16) $13,342 $5,095 $20,910
CZ03 PGE $514 $76 $11,946 $6,319 $18,293
CZ04 PGE $652 $41 $13,059 $6,031 $20,843
CZ04 CPAU $652 $0 $13,059 $255 $255
CZ05 PGE $583 $12 $9,998 $4,285 $15,110
CZ05 PGE/SCG $583 ($240) $9,998 ($2,978) $2,679
CZ06 SCE/SCG $583 ($42) $3,860 ($7) $1,259
CZ07 SDGE $583 $37 $3,876 $1,837 $3,652
CZ08 SCE/SCG $721 ($75) $3,305 ($1,076) $457
CZ09 SCE/SCG $721 ($131) $4,415 ($2,095) $72
CZ10 SCE/SCG $721 ($110) $3,982 ($1,649) $504
CZ10 SDGE $721 $139 $3,982 $4,305 $8,106
CZ11 PGE $790 $94 $14,045 $7,108 $23,108
CZ12 PGE $721 $20 $13,850 $5,506 $20,829
CZ12 SMUD/PGE $721 $772 $13,850 $22,326 $38,189
CZ13 PGE $790 $89 $9,394 $5,347 $16,369
CZ14 SCE/SCG $721 ($241) $10,103 ($2,418) $5,836
CZ14 SDGE $721 $62 $10,103 $4,832 $17,541
CZ15 SCE/SCG $859 $52 $643 $930 $1,769
CZ16 PGE $2,095 $16 $27,492 $10,883 $47,907
135
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 47 2025/08/08
Table 30. [Pre-1978] High Efficiency HPSH CARE
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $5,998 $450 $30,518 $13,096 $45,609
CZ02 PGE $3,606 $126 $13,354 $3,405 $19,322
CZ03 PGE $3,422 $172 $10,768 $3,678 $15,720
CZ04 PGE $3,606 $209 $13,537 $4,926 $19,859
CZ04 CPAU $3,606 $0 $13,537 ($4,595) ($4,595)
CZ05 PGE $3,514 $103 $8,416 $1,521 $12,412
CZ05 PGE/SCG $3,514 ($148) $8,416 ($5,742) ($19)
CZ06 SCE/SCG $3,514 $11 $380 ($3,634) ($2,319)
CZ07 SDGE $3,514 $89 $430 ($1,774) $25
CZ08 SCE/SCG $3,698 $33 $1,065 ($3,586) ($1,955)
CZ09 SCE/SCG $3,698 ($10) $2,358 ($4,304) ($2,027)
CZ10 SCE/SCG $3,698 $21 $2,191 ($3,628) ($1,354)
CZ10 SDGE $3,698 $255 $2,191 $2,127 $5,893
CZ11 PGE $3,789 $327 $15,614 $7,382 $23,549
CZ12 PGE $3,698 $236 $14,490 $5,437 $20,914
CZ12 SMUD/PGE $3,698 $772 $14,490 $17,439 $33,302
CZ13 PGE $3,789 $310 $10,164 $5,378 $16,558
CZ14 SCE/SCG $3,698 ($54) $11,876 ($3,161) $5,265
CZ14 SDGE $3,698 $263 $11,876 $4,651 $17,300
CZ15 SCE/SCG $3,881 $232 $393 ($35) $970
CZ16 PGE $5,071 $360 $34,043 $13,682 $50,953
136
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 48 2025/08/08
Table 31. [1978-1991] DFHP Existing Furnace CARE
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $2,405 $273 $20,184 $12,619 $36,168
CZ02 PGE $1,670 $12 $9,216 $4,240 $13,931
CZ03 PGE $1,178 $76 $8,952 $5,930 $14,293
CZ04 PGE $1,670 $23 $8,234 $3,777 $11,336
CZ04 CPAU $1,670 $0 $8,234 $786 $786
CZ05 PGE $1,424 $40 $7,070 $4,285 $11,150
CZ05 PGE/SCG $1,424 ($122) $7,070 ($400) $3,130
CZ06 SCE/SCG $1,424 ($21) $2,941 $952 $1,705
CZ07 SDGE $1,424 $9 $3,046 $1,631 $2,667
CZ08 SCE/SCG $1,916 ($45) $2,294 ($246) $693
CZ09 SCE/SCG $1,916 ($67) $3,127 ($563) $861
CZ10 SCE/SCG $1,916 ($50) $2,755 ($208) $1,125
CZ10 SDGE $1,916 $110 $2,755 $3,621 $5,975
CZ11 PGE $2,162 $155 $9,192 $6,617 $16,577
CZ12 PGE $1,916 $128 $9,753 $6,583 $16,702
CZ12 SMUD/PGE $1,916 $506 $9,753 $15,028 $25,418
CZ13 PGE $2,162 $135 $6,312 $5,245 $12,393
CZ14 SCE/SCG $1,916 ($128) $5,080 ($1,202) $2,261
CZ14 SDGE $1,916 $65 $5,080 $3,272 $8,344
CZ15 SCE/SCG $2,408 ($9) $50 ($504) ($107)
CZ16 PGE $2,243 $28 $14,397 $4,676 $19,471
137
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 49 2025/08/08
Table 32. [1978-1991] Standard Efficiency HPSH CARE
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $3,067 $146 $21,427 $8,941 $34,641
CZ02 PGE $652 ($47) $10,428 $3,076 $14,864
CZ03 PGE $514 $33 $8,999 $4,259 $12,882
CZ04 PGE $652 ($10) $9,984 $3,558 $14,338
CZ04 CPAU $652 $0 $9,984 $255 $255
CZ05 PGE $583 ($18) $7,290 $2,586 $10,196
CZ05 PGE/SCG $583 ($199) $7,290 ($2,659) $1,219
CZ06 SCE/SCG $583 ($24) $2,450 $215 $956
CZ07 SDGE $583 $6 $2,539 $898 $1,929
CZ08 SCE/SCG $721 ($57) $2,111 ($896) $57
CZ09 SCE/SCG $721 ($91) $3,022 ($1,455) $13
CZ10 SCE/SCG $721 ($71) $2,672 ($1,035) $390
CZ10 SDGE $721 $96 $2,672 $2,939 $5,474
CZ11 PGE $790 $74 $10,682 $5,209 $16,830
CZ12 PGE $721 $30 $10,747 $4,418 $15,794
CZ12 SMUD/PGE $721 $573 $10,747 $16,567 $28,332
CZ13 PGE $790 $72 $7,141 $4,003 $12,047
CZ14 SCE/SCG $721 ($224) $7,556 ($2,880) $2,930
CZ14 SDGE $721 $42 $7,556 $3,476 $12,809
CZ15 SCE/SCG $859 ($13) $71 ($639) ($219)
CZ16 PGE $2,095 ($25) $22,236 $7,529 $37,120
138
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 50 2025/08/08
Table 33. [1978-1991] High Efficiency HPSH CARE
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $5,998 $339 $23,092 $8,460 $34,300
CZ02 PGE $3,606 $57 $9,242 $547 $12,409
CZ03 PGE $3,422 $111 $6,872 $1,228 $9,907
CZ04 PGE $3,606 $113 $9,114 $1,472 $12,340
CZ04 CPAU $3,606 $0 $9,114 ($4,595) ($4,595)
CZ05 PGE $3,514 $58 $4,859 ($544) $7,120
CZ05 PGE/SCG $3,514 ($124) $4,859 ($5,789) ($1,857)
CZ06 SCE/SCG $3,514 $5 ($1,546) ($3,963) ($3,196)
CZ07 SDGE $3,514 $39 ($1,407) ($3,143) ($2,122)
CZ08 SCE/SCG $3,698 $32 ($828) ($3,800) ($2,766)
CZ09 SCE/SCG $3,698 ($0) $232 ($4,336) ($2,784)
CZ10 SCE/SCG $3,698 $25 $82 ($3,803) ($2,290)
CZ10 SDGE $3,698 $184 $82 $124 $2,631
CZ11 PGE $3,789 $272 $10,685 $4,725 $16,488
CZ12 PGE $3,698 $191 $10,023 $3,148 $14,639
CZ12 SMUD/PGE $3,698 $573 $10,023 $11,680 $23,445
CZ13 PGE $3,789 $259 $6,612 $3,262 $11,441
CZ14 SCE/SCG $3,698 ($82) $7,697 ($4,629) $1,311
CZ14 SDGE $3,698 $195 $7,697 $2,166 $11,452
CZ15 SCE/SCG $3,881 $133 ($1,111) ($2,349) ($1,794)
CZ16 PGE $5,071 $245 $26,407 $8,685 $38,470
139
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 51 2025/08/08

6.3 Utility Rate Schedules

6.3.1 Pacific Gas & Electric
The following pages provide details on the PG&E electricity and natural gas tariffs applied in this study. Table 34 describes the baseline territories that were assumed for each climate zone. A net surplus compensation rate of $ 0.03396/ kWh was applied to any net annual electricity generation based on a one-year average of the rates between February 2024 and January 2025.

Table 34. PG&E Baseline Territory by Climate Zone
Climate
Zone
Baseline
Territory
CZ01 V
CZ02 X
CZ03 T
CZ04 X
CZ05 T
CZ11 R
CZ12 S
CZ13 R
CZ16 Y
The PG&E monthly gas rate in $/therm was applied on a monthly basis according to the rates shown in Table 35. The gas rates were developed based on the latest available gas rate for January 2025 and a curve to reflect how natural gas prices fluctuate with seasonal supply and demand. The seasonal curve was estimated from PG&E’s monthly residential tariffs between 2015 and 2024. 12-month curves were created from monthly gas rates for each of the ten years. The ten annual curves were then averaged to arrive at an average normalized annual curve. The baseline and excess transmission charges were found to be consistent over the course of a year and applied for the entire year based on January 2025 rates. The costs presented in Table 35 were then derived by establishing the baseline and excess rates from the latest January 2025 tariff as a reference point, and then using the normalized curve to estimate the cost for the remaining months relative to the January rates.

Corresponding CARE tariffs reflect the 20 percent discount per the GL-1 tariff. 140
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 52 2025/08/08
Table 35. PG&E Monthly Gas Rate ($/therm)
Month Total Charge
Baseline Excess
January $2.63 $3.15
February $2.64 $3.16
March $2.41 $2.94
April $2.24 $2.77
May $2.21 $2.74
June $2.23 $2.77
July $2.26 $2.80
August $2.36 $2.90
September $2.42 $2.98
October $2.52 $3.07
November $2.63 $3.17
December $2.70 $3.23
141
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 53 2025/08/08 142
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 54 2025/08/08 143
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 55 2025/08/08 144
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 56 2025/08/08 145
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 57 2025/08/08 146
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 58 2025/08/08 147
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 59 2025/08/08 148
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 60 2025/08/08

6.3.2 Southern California Edison
The following pages provide details on the SCE electricity tariffs applied in this study. Table describes the baseline territories that were assumed for each climate zone. A net surplus compensation rate of $ 0.01532/ kWh was applied to any net annual electricity generation based on a one-year average of the rates between February 2024 and January 2025.

Table 36. SCE Baseline Territory by Climate Zone
Climate
Zone
Baseline
Territory
CZ06 6
CZ08 8
CZ09 9
CZ10 10
CZ14 14
CZ15 15
149
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 61 2025/08/08 150
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 62 2025/08/08 151
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 63 2025/08/08 152
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 64 2025/08/08

6.3.3 Southern California Gas
Following are the SoCalGas natural gas tariffs applied in this study. Table 37 describes the baseline territories that were assumed for each climate zone.

Table 37. SoCalGas Baseline Territory by Climate Zone
Climate
Zone
Baseline
Territory
CZ05 2
CZ06 1
CZ08 1
CZ09 1
CZ10 1
CZ14 2
CZ15 1
The SoCalGas monthly gas rate in $/therm applied in this analysis is shown in Table 38. The gas rates were developed based on the latest available gas rate for January 2025 and a curve to reflect how natural gas prices fluctuate with seasonal supply and demand. The seasonal curve was estimated from SoCalGas’s monthly residential tariffs between 2015 and 2024. 12-month curves were created from monthly gas rates for each of the ten years. The ten annual curves were then averaged to arrive at an average normalized annual curve.

Long-term historical natural gas rate data was only available for SoCalGas’ procurement charges.8 The baseline and excess transmission charges were found to be consistent over the course of a year and applied for the entire year based on January 2025 rates. The costs presented in Table 38 were then derived by establishing the baseline and excess rates from the latest January 2025 tariff as a reference point, and then using the normalized curve to estimate the cost for the remaining months relative to the January rates. CARE tariffs reflect the 20 percent discount per the GR tariff.
8 The SoCalGas procurement and transmission charges were obtained from the following site:
https://www.socalgas.com/for-your-business/energy-market-services/gas-prices RES2023.xlsx (live.com)
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Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 65 2025/08/08
Table 38. SoCalGas Monthly Gas Rate ($/therm)
Month Procurement
Charge
Transportation Charge Total Charge
Baseline Excess Baseline Excess
January $0.45 $0.98 $1.40 $1.43 $1.85
February $0.31 $0.98 $1.40 $1.29 $1.71
March $0.26 $0.98 $1.40 $1.24 $1.66
April $0.21 $0.98 $1.40 $1.19 $1.62
May $0.22 $0.98 $1.40 $1.20 $1.62
June $0.25 $0.98 $1.40 $1.23 $1.65
July $0.26 $0.98 $1.40 $1.24 $1.66
August $0.29 $0.98 $1.40 $1.27 $1.70
September $0.27 $0.98 $1.40 $1.25 $1.67
October $0.26 $0.98 $1.40 $1.24 $1.66
November $0.29 $0.98 $1.40 $1.27 $1.69
December $0.33 $0.98 $1.40 $1.31 $1.73

6.3.4 San Diego Gas & Electric
Following are the SDG&E electricity and natural gas tariffs applied in this study. Table 39 describes the baseline territories that were assumed for each climate zone. A net surplus compensation rate of $ 0.01837/ kWh was applied to any net annual electricity generation based on a one-year average of the rates between February 2024 and January 2025.

Table 39. SDG&E Baseline Territory by Climate Zone
Climate
Zone
Baseline
Territory
CZ07 Coastal
CZ10 Inland
CZ14 Mountain
The SDG&E monthly gas rate in $/therm was applied on a monthly basis according to the rates shown in Table 40. The gas rates were developed based on the latest available gas rate for January 2025 and a curve to reflect how natural gas prices fluctuate with seasonal supply and demand. The seasonal curve was estimated from SDG&E’s monthly residential tariffs between 2015 and 2024. 12-month curves were created from monthly gas rates for each of the ten years. The ten annual curves were then averaged to arrive at an average normalized annual curve. The baseline and excess transmission charges were found to be consistent over the course of a year and applied for the entire year based on January 2025 rates. The costs presented in Table 40 were then derived by establishing the baseline and excess rates from the latest January 2025 tariff as a reference point, and then using the normalized curve to estimate the cost for the remaining months relative to the January rates.

CARE tariffs reflect the 20 percent discount per the G-CARE tariff. 154
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 66 2025/08/08
Table 40. SDG&E Monthly Gas Rate ($/therm)
Month Total Charge
Baseline Excess
January $2.07 $2.36
February $2.01 $2.30
March $1.93 $2.22
April $1.86 $2.16
May $1.88 $2.18
June $1.94 $2.24
July $1.95 $2.25
August $2.02 $2.32
September $1.97 $2.27
October $1.94 $2.24
November $1.97 $2.27
December $2.07 $2.37
155
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 67 2025/08/08 156
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 68 2025/08/08 157
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 69 2025/08/08 158
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 70 2025/08/08 159
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 71 2025/08/08 160
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 72 2025/08/08

6.3.5 City of Palo Alto Utilities
Following are the CPAU electricity and natural gas tariffs applied in this study. The CPAU monthly gas rate in $/therm was applied on a monthly basis according to the rates shown in Table 41. The gas rates were developed based on the latest available gas rate for January 2025 and a curve to reflect how natural gas prices fluctuate with seasonal supply and demand. The seasonal curve was estimated from CPAU’s monthly residential tariffs between 2018 and 2024. 12-month curves were created from monthly gas rates for each of the seven years. The seven annual curves were then averaged to arrive at an average normalized annual curve. The baseline and excess transmission charges were found to be consistent over the course of a year and applied for the entire year based on January 2025 rates. The costs presented in Table 41 were then derived by establishing the baseline and excess rates from the latest January 2025 tariff as a reference point and then using the normalized curve to estimate the cost for the remaining months relative to the January rates. The monthly service charge applied was $16.93 per month per the January 2025 G-1 tariff.

Table 41. CPAU Monthly Gas Rate ($/therm)
Month G1 Volumetric
Total Baseline
G1 Volumetric
Total Excess
January $1.74 $3.02
February $1.33 $2.53
March $1.24 $2.43
April $1.21 $2.39
May $1.21 $2.39
June $1.23 $2.42
July $1.31 $2.64
August $1.37 $2.71
September $1.36 $2.71
October $1.38 $2.72
November $1.45 $2.80
December $1.57 $2.96
161
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 73 2025/08/08 162
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 74 2025/08/08

6.3.6 Sacramento Municipal Utilities District (Electric Only) Following are the SMUD electricity tariffs applied in this study. The rates effective January 2025 were used.
163
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 75 2025/08/08 164
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 76 2025/08/08

6.3.7 Fuel Escalation Assumptions
The average annual escalation rates in Table 42 and Table 43 were used in this study. Table 42 rates are based on assumptions from the CPUC 2021 En Banc hearings on utility costs through 2030 (California Public Utilities Commission, 2021a). Escalation rates through the remainder of the 30-year evaluation period are based on the escalation rate assumptions within the 2022 TDV factors. No data was available to estimate electricity escalation rates for CPAU and SMUD, therefore electricity escalation rates for PG&E and statewide natural gas escalation rates were applied. Table 43 rates are based on the escalation rate assumptions within the 2025 LSC factors from 2026 through 2055.9 These rates were developed for electricity use statewide (not utility-specific) and assume steep increases in gas rates in the latter half of the analysis period. Data was not available for the year 2026 and so the CPUC En Banc assumptions were applied for those years using the average rate across the three IOUs for statewide electricity escalation.
9https://www.energy.ca.gov/files/2025-energy-code-hourly-factors. (California Energy Commission, 2023). Actual escalation factors were provided by consultants E3.
165
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 77 2025/08/08
Table 42. Real Utility Rate Escalation Rate Assumptions, CPUC En Banc and 2022 TDV Basis Statewide Natural
Gas Residential
Average Rate
(%/year, real)
Electric Residential Average Rate
(%/year, real)

PG&E SCE SDG&E
2026 4.6% 1.8% 1.6% 2.8%
2027 4.6% 1.8% 1.6% 2.8%
2028 4.6% 1.8% 1.6% 2.8%
2029 4.6% 1.8% 1.6% 2.8%
2030 4.6% 1.8% 1.6% 2.8%
2031 2.0% 0.6% 0.6% 0.6%
2032 2.4% 0.6% 0.6% 0.6%
2033 2.1% 0.6% 0.6% 0.6%
2034 1.9% 0.6% 0.6% 0.6%
2035 1.9% 0.6% 0.6% 0.6%
2036 1.8% 0.6% 0.6% 0.6%
2037 1.7% 0.6% 0.6% 0.6%
2038 1.6% 0.6% 0.6% 0.6%
2039 2.1% 0.6% 0.6% 0.6%
2040 1.6% 0.6% 0.6% 0.6%
2041 2.2% 0.6% 0.6% 0.6%
2042 2.2% 0.6% 0.6% 0.6%
2043 2.3% 0.6% 0.6% 0.6%
2044 2.4% 0.6% 0.6% 0.6%
2045 2.5% 0.6% 0.6% 0.6%
2046 1.5% 0.6% 0.6% 0.6%
2047 1.3% 0.6% 0.6% 0.6%
2048 1.6% 0.6% 0.6% 0.6%
2049 1.3% 0.6% 0.6% 0.6%
2050 1.5% 0.6% 0.6% 0.6%
2051 1.8% 0.6% 0.6% 0.6%
2052 1.8% 0.6% 0.6% 0.6%
2053 1.8% 0.6% 0.6% 0.6%
2054 1.8% 0.6% 0.6% 0.6%
2055 1.8% 0.6% 0.6% 0.6%
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Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 78 2025/08/08
Table 43. Real Utility Rate Escalation Rate Assumptions, 2025 LSC Basis Year
Statewide Natural
Gas Residential
Average Rate
(%/year, real)
Statewide
Electricity
Residential
Average Rate
(%/year, real)
2026 4.6% 2.1%
2027 4.2% 0.6%
2028 3.2% 1.9%
2029 3.6% 1.6%
2030 6.6% 1.3%
2031 6.7% 1.0%
2032 7.7% 1.2%
2033 8.2% 1.1%
2034 8.2% 1.1%
2035 8.2% 0.9%
2036 8.2% 1.1%
2037 8.2% 1.1%
2038 8.2% 1.0%
2039 8.2% 1.1%
2040 8.2% 1.1%
2041 8.2% 1.1%
2042 8.2% 1.1%
2043 8.2% 1.1%
2044 8.2% 1.1%
2045 8.2% 1.1%
2046 8.2% 1.1%
2047 3.1% 1.1%
2048 -0.5% 1.1%
2049 -0.6% 1.1%
2050 -0.5% 1.1%
2051 -0.6% 1.1%
2052 -0.6% 1.1%
2053 -0.6% 1.1%
2054 -0.6% 1.1%
2055 -0.6% 1.1%
167
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 79 2025/08/08
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168
There are no written materials for
Item 9a
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TOWN OF PORTOLA VALLEY

STAFF REPORT
TO: Mayor and Members of the Town Council
FROM: Vice Mayor Craig Taylor and Councilmember Rebecca Flynn DATE: November 12, 2025
RE: Update by Town Council Safety Element Subcommittee

BACKGROUND
Given the urgency of enhancing our safety infrastructure, on May 21, 2025 the Town Council established two Town Council Subcommittees: 1) Safety Element Subcommittee to oversee the process of completing a draft Town Safety Element document; and 2) Town Resilience Planning Subcommittee to create a comprehensive list of potential safety initiatives for future action. The Safety Element Council Subcommittee is returning to the Town Council with an update.

RECOMMENDATIONS:

1. We recommend that the Town Council receive this update on our activities over the past five months.

2. We request approval by the full Town Council of the actions listed in the Next Steps section below.

3. We recommend moving forward with the updated Urban Planning Partners contract. The expectation is that we will continue the work leading up to the Second Public Draft Safety Element and that the permanent Planning and Building Director once hired will review the scope of the remaining work.

DISCUSSION
The Town’s Safety Element of our General Plan is the overarching view of our approach to the Town’s safety priorities. The Safety Element when paired with a set of safety and resilience initiatives begins to address in a concrete way the significant safety issues facing the Town.

The Safety Element of the Town of Portola Valley General Plan was last updated July 28, 2010.

Beginning August 2021, the Town embarked on an effort to update the Safety Element. In 2022, Urban Planning Partners, who utilizes Atlas Planning as a subconsultant for their expertise in the Safety Element work, prepared the first Public Draft Safety Element which was circulated for public review in October 2022. The Town received comments from the public, and key Town committees, including: the Geologic Safety Committee, Wildfire Preparedness Committee/Community Planning Assistance for Wildfire (CPAW), Sustainability Committee, and Emergency Preparedness Committee. A list of compiled comments was prepared before the project was paused in July 2023 to focus on efforts to complete the Town’s General Plan Housing Element. It was also determined that it would be beneficial to wait for the updated State Fire Safety Maps so that the maps could be considered. The maps were expected in Mid2023 but were not released until late 2024.

In May 2025, the Town Council approved the creation of a Safety Element Subcommittee to oversee the process of completing a draft Town Safety Element in accordance with state mandates by the first half of the 2025-26 fiscal year, with an original estimated completion date by December 2025. The Safety Element Subcommittee was tasked with:
170
a. Working with Staff, Committees, Commissions, residents, and consultants to finalize the Safety Element; and
b. Planning for community education and engagement with respect to the Safety Element.

The Subcommittee has completed the following tasks to date:

1. Reviewed the 2022 draft Safety Element from Urban Planning Partners along with all public comments and committee feedback.

2. Incorporated comments and feedback into the draft with notes tracking comments received. Added three missing optional hazard sections (Human Health Hazards, Hazardous Materials, and Airport Hazards) identified through evaluation of the 21 Elements Peninsula Resilience Planning Project Safety Element templates.

3. Met with Town staff to discuss the Safety Element and establish next steps, including updating the consultant contract proposal to focus on their domain expertise.

NEXT STEPS:

1. The Subcommittee will complete the work of incorporating feedback and comments.

2. The Consultant will review and revise the updated draft to ensure consistency with State law and State Agency requirements and ensure internal consistency with the Town’s General Plan and Housing Element updates. (Based on approval of the updated Urban Planning Partners Contract)

3. The Consultant will provide the updated draft to the Fire Marshall and Town Geologist and incorporate their comments.

4. Once any additional comments are incorporated, the Consultant will issue the Second Public Draft Safety Element for public review.

5. The Planning Director will review the document and initiate the final approval process.

FINAL APPROVAL PROCESS:

1. Public Review - 30 day

2. Briefing by Safety Element Subcommittee with the Planning Commission Chair and Town Safety Committee Chairs on the upcoming process.

3. Public Study session for Town Council and Planning Commission with attendance by Committee chairs. Council will provide direction to staff to incorporate any necessary changes.

4. The Second Public Draft Safety Element submittal to state agencies CAL FIRE (60 days), State Board of Forestry and Fire Protection (+30 days) and California Geological Survey of the California Department of Conservation.

5. Public Planning Commission meeting for formal recommendation

6. Public Town Council meeting for formal approval
This process is expected to be completed before the end of the fiscal year.

FISCAL IMPACT:

The adopted FY 2025-26 budget includes $50,000 from the Town General Fund for this effort, which must be expended prior to the end of the Fiscal Year on June 30, 2025. Completion of the Safety Element will require staff time as well as consultant time:

The agreement has been updated with more thorough and specific details and is now Time and Materials not to exceed $42,844 (includes subconsultant mark-up). With optional tasks, the total is $49,994.
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This contract is authorized for $49,994 which is within the budget.

ADDITIONAL BACKGROUND INFORMATION
What is a Safety Element?
A Safety Element is a required chapter in a California town, city or county's general plan that outlines policies to protect the community from natural and human-caused hazards. It identifies risks like earthquakes, floods, wildfires, and landslides, and establishes goals, programs, and policies for disaster preparedness, response, and long-term resilience, including climate change impacts. This Safety Element guides local decision-making on land use, zoning, and other developments to minimize risks.

Key functions of a Safety Element
Hazard identification: Identifies and assesses local hazards, such as earthquakes, floods, fires, landslides, and other risks like hazardous materials spills.

Disaster preparedness and response: Sets out policies and programs for emergency response, evacuation, and disaster preparedness.

Risk reduction: Establishes goals and policies to reduce the potential for death, injury, and property damage from disasters.

Climate change resilience: Includes assessments of climate change vulnerability and strategies to mitigate those vulnerabilities.

Guides planning: Provides a framework to inform and align other local planning decisions, including those in the land use and housing elements.

The Portola Valley Safety Element Background sections discuss the natural and human-caused hazard issues that can affect the Town of Portola Valley. Each issue identified in the report includes a general overview of each hazard, how/where the hazard affects the Town and its residents, information on past hazard events, current programs and regulatory frameworks in place to reduce the impacts associated with these hazards, as well as future conditions (including potential climate change impacts associated with these hazards). The intent of this report is to provide background information that informs how and why the goals, policies, and implementation actions within the updated Portola Valley General Plan Safety Element were developed.

The Safety Element of the General Plan will focus on reducing potential risk of death, injuries, damage to property, and the economic and social disruptions resulting from fire, flood, geologic and other hazards.

The General Plan provides policies and standards for the type, location, intensity, and design of development in areas of potential hazards. The intent is not to remove all risks associated with each specific type of hazard, but to reduce risks to life and property and to make informed decisions about land use and development near these hazards. A safety element is required to identify unreasonable risks and provide policies for the protection of the community from such risks. The inherent Portola Valley risks are slope instability, seismic risks, flooding, and fire. More recently, after the passage of SB 379 (2015), climate change risks are required for consideration.

What is a Local Safety Hazard Mitigation Plan?
Local hazard mitigation plans form the foundation of a community's long-term strategy to reduce disaster losses and break the cycle of disaster damage, reconstruction and repetitive damage. FEMA supports local mitigation planning to achieve the following:

Foster partnerships among all levels of government.

Develop and strengthen non-governmental and private partnerships. 172
Promote more disaster-resilient communities.

Reduce the costs associated with disaster response and recovery by promoting mitigation activities.

Community resilience is the ability of a community to prepare for and adapt to anticipated hazards and withstand and recover rapidly from disruptions. Activities such as disaster preparedness (which includes prevention, protection, mitigation, response and recovery) are key steps to resilience.

What is the Safety and Resilience Initiatives List?
This list compiled after working with the Town’s safety and other committees represents the immediate, midterm, and longer-term safety and resilience initiatives that the Town can accomplish by our committees, staff, and available budget to help mitigate the hazards our Town faces. The list represents those initiatives that we can reasonably accomplish given our volunteer labor and constrained staff and budget.
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TOWN OF PORTOLA VALLEY

STAFF REPORT
TO: Mayor and Members of the Town Council
FROM: Steve McHarris, Interim Planning and Building Director DATE: November 12, 2025
RE: Consider Authorizing the Mayor to Execute a Professional Consultant Services Agreement for the Portola Valley Safety Element Update with Urban Planning Partners, Inc.

RECOMMENDATION
Staff recommends that the Council, by motion, authorize the Mayor to execute a Professional Consultant Services Agreement for a 12-month period in an amount not to exceed $49,994 for the Portola Valley Safety Element Update with Urban Planning Partners, Inc.

BACKGROUND
Each California jurisdiction, including Portola Valley, is required to have a Safety Element in its General Plan. The Safety Element of the Town of Portola Valley General Plan was last updated July 28, 2010.

Beginning August 2021, the Town embarked on an effort to update the Safety Element. In 2022, Urban Planning Partners, who utilizes Atlas Planning as a subconsultant for their expertise in the Safety Element work, prepared the first Public Draft Safety Element which was circulated for public review in October 2022. The Town received comments from the public, and key Town committees, including: the Geologic Safety Committee, Wildfire Preparedness Committee/Community Planning Assistance for Wildfire (CPAW), and Emergency Preparedness Committee. A list of compiled comments was prepared before the project was paused in July 2023 to focus on efforts to prepare the Town’s General Plan Housing Element. It was also determined that it would be beneficial to wait for the updated State Fire Safety Maps so that the maps could be considered. The maps were expected in Mid- 2023 but were not released until late 2024.

Staff and the Town Council Safety Element Subcommittee are currently reviewing the list of compiled comments with the relevant committees and incorporating revisions as needed into an Administrative Second Public Draft Safety Element. The Town will provide the administrative draft to Urban Planning Partners by the end of December 2025.

DISCUSSION
The Town staff proposes to execute a contract for the final Safety Element work with Urban Planning Partners Inc. This firm completed the project up to this point and they have the expertise and background information to allow the efficient completion of the project.

The process to finalize and adopt the Safety Element would include the following tasks:

Prepare the second Public Draft Safety Element, which will be published online for public and Town committee review approximately 30 days prior to the Study Session, to ensure that the public and Town committees can review in advance of the meeting. 174
Conduct a Joint Town Council and Planning Commission study session to review the second Public Draft Safety Element and accept public comments.

Compile and summarize all public, committee, Planning Commission, and Town Council comments and provide them to Town staff and the Town Council Subcommittee. Town staff may assist with this compilation as well to ensure costs are in line with the consultant budget.

Incorporate Town feedback and finalize a list of changes in two categories: 1) simple edits that can be made within the current scope and budget or 2) more significant revisions that would require the authorization of Optional Task 3A below.

Optional Task 3A – If the Town Council or public comments warrant significant revisions, the consultants will prepare a Third Public Draft Safety Element under a separate authorization.

The consultants will prepare a brief CEQA Memo documenting that the Administrative Second Public Draft Safety Element is exempt from CEQA.

Prepare the Final Draft Safety Element and submit to the mandated State agencies for review (Cal FIRE, State Board of Forestry and Fire Protection, and CGS) for formal review. Cal FIRE recommends submittal at least 90 days prior to adoption and 30 days prior to the Board of Forestry meeting.

Prepare the Final Safety Element and present it to the Planning Commission for recommendation, and the Town Council for final adoption. This assumes one meeting each and no revisions at these meetings.

The schedule to complete the work has not been developed, as Town staff time is currently limited due to vacancies in the Planning and Building Department, and the vacancy of the permanent Planning and Building Director. Staff propose to move forward now with the preparation of the second Public Draft Safety Element. Staff will re-evaluate the timeline to hold the Study Session to ensure that there is adequate Planning and Building Department staff to support this effort. Completion of the work to adoption is estimated to take approximately six to nine months, which includes the potential 90-day review period by Cal FIRE.

FISCAL IMPACT
The adopted FY 2025-26 budget includes $50,000 from the Town General Fund for this effort, which must be expended prior to the end of the Fiscal Year on June 30, 2025. Completion of the Safety Element will require staff time as well as consultant time:

The agreement has been updated with more thorough and specific details and is now Time and Materials not to exceed $42,844 (includes subconsultant mark-up). With optional tasks, the total is $49,994.

This contract is authorized for $49,994, which is within the budget.

ATTACHMENTS

1. Draft Agreement Between the Town of Portola Valley and Urban Planning Partners with Exhibits Including the Scope of Work and Budget
175
1 AGREEMENT FOR

PORTOLA VALLEY GENERAL PLAN SAFETY ELEMENT UPDATE
THIS AGREEMENT is made and entered into this ___ day of ________, 2025 by and between the Town of Portola Valley, a municipal corporation, (“Town”) and Uban Planning Partners, Inc. (“Consultant”).

RECITALS
A. The Town desires to retain the professional consulting services of Consultant as an independent contractor to support the Town of Portola Valley in completing its Safety Element Update. Consultant services shall include: project management and coordination; preparation of a second Public Draft Safety Element; Assist Planning Commission and Town Council Study Session review of the second Public Draft Safety Element; Finalize the state review and revisions to the Final Draft Safety Element; and Assist with the Final Safety Element and adoption process, as described in more detail in Exhibit A.

B. Consultant represents that it is fully qualified to perform such services by virtue of its experience and the training, education and expertise of its principals and employees.

NOW, THEREFORE, in consideration of performance by the parties of the promises, covenants and conditions contained herein, the parties hereby agree as follows:

1. SCOPE AND LEVEL OF SERVICES. Consultant will provide services as set forth in detail in Exhibit A.

2. TIME OF PERFORMANCE. [RESERVED].

3. STANDARD OF PERFORMANCE. As a material inducement to the Town to enter into this Agreement, Consultant hereby represents and warrants that it has the qualifications and experience necessary to undertake the services to be provided pursuant to this Agreement. Consultant shall perform all work to the highest professional standards and in a manner reasonably satisfactory to the Town. Consultant hereby covenants that it shall follow the highest professional standards in performing all services required hereunder and will perform the services to a standard of reasonable professional care.

4. COMPLIANCE WITH LAW. All services rendered hereunder by Consultant shall be provided in accordance with all ordinances, resolutions, statutes, rules and regulations of the Town, and any federal, state or local governmental agency having jurisdiction in effect at the time the service is rendered. 176
2 5. TERM. This Agreement is effective on ________, 2025 and shall remain in effect for twelve (12 months) from the effective date, or until terminated in accordance with Section 17 below.

6. COMPENSATION. The Town agrees to compensate Consultant for its services according to the fee schedule set forth in Exhibit A, to a maximum of fifty thousand dollars ($49,994.00). The Town also agrees to compensate Consultant for its out-of-pocket expenses to the extent authorized in Exhibit A. In no event shall the total compensation and costs payable to consultant under this Agreement exceed the sum of fifty thousand dollars ($49,994.00) unless specifically approved in writing by the Town Council.

7. METHOD OF PAYMENT. Consultant shall invoice the Town on a monthly basis for work performed after each task is completed as set forth in Exhibit A. Payments to Consultant by Town shall be made within thirty (30) days after receipt by Town of Consultant’s itemized invoices.

8. REPRESENTATIVE. Curtis Banks is hereby designated as the representative of Consultant authorized to act on its behalf with respect to the services specified herein. It is expressly understood that the experience, knowledge, capability and reputation of Curtis Banks were a substantial inducement for Town to enter into this Agreement. Therefore, Curtis Banks shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. The representative may not be changed by Consultant without the express written approval of the Town.

9. INDEPENDENT CONTRACTOR. Consultant is, and shall at all times remain as to the Town, a wholly independent contractor and not an agent or employee of Town. Consultant shall receive no premium or enhanced pay for work normally understood as overtime, nor shall Consultant receive holiday pay, sick leave, administrative leave, or pay for any other time not actually worked. The intention of the parties is that Consultant shall not be eligible for benefits and shall receive no compensation from the Town except as expressly set forth in this Agreement. Consultant shall have no power to incur any debt, obligation, or liability on behalf of the Town or otherwise act on behalf of the Town as an agent. Neither the Town, nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement. Consultant shall at no time, or in any manner, represent that it or any of its agents or employees are in any manner employees of the Town. Consultant agrees to pay all required taxes on amounts paid to Consultant under this Agreement, and to indemnify and hold the Town harmless from any and all taxes, assessments, penalties, and interest asserted against the Town by reason of the independent contractor relationship created by this Agreement. Consultant shall fully comply with the worker’s compensation law regarding Consultant and Consultant’s employees. Consultant further agrees to indemnify and hold the Town harmless from any failure of Consultant to comply with applicable worker’s compensation laws. The Town shall not have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to Town from Consultant as a result of Consultant’s 177
3 failure to promptly pay the Town any reimbursement or indemnification arising under this Section.

10. CONFIDENTIALITY. Consultant, in the course of its duties, may have access to financial, accounting, statistical and personal data of private individuals and employees of the Town. Consultant covenants that all data, documents, discussion, or other information developed and received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by the Town. The Town shall grant such authorization if disclosure is required by law. Upon request, all Town data shall be returned to the Town upon the termination of this Agreement. Consultant’s covenant under this Section shall survive the termination of this Agreement.

11. OWNERSHIP OF MATERIAL. All reports, documents, or other written materials developed or discovered by Consultant or any other person engaged directly or indirectly by Consultant in the performance of this Agreement shall be and remain the property of the Town without restriction or limitation upon its use or dissemination by the Town.

12. CONFLICT OF INTEREST. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by Consultant under this Agreement, or which would conflict in any manner with the performance of its services hereunder. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest which would conflict in any manner with the performance of its services pursuant to this Agreement. Consultant agrees not to accept any employment or representation during the term of this Agreement which is or may make Consultant “financially interested” (as provided in California Government Code Sections 1090 and 87100) in any decision made by the Town on any matter in connection with which Consultant has been retained pursuant to this Agreement. Nothing in this section shall, however, preclude Consultant from accepting other engagements with the Town.

13. ASSIGNABILITY; SUBCONTRACTING. The parties agree that the expertise and experience of Consultant are material considerations for this Agreement.

Consultant shall not assign, transfer, or subcontract any interest in this Agreement, nor the performance of any of Consultant’s obligations hereunder, without the prior written consent of the Town Council, and any attempt by Consultant to do so shall be void and of no effect and a breach of this Agreement.

14. INDEMNIFICATION.

14.1 To the fullest extent permitted by law, Consultant shall indemnify, defend (with independent counsel approved by the Town) and hold harmless the Town, and its elective or appointive boards, officers, employees, agents and volunteers against any claims, losses, or liability that may arise out of or result from damages to property or personal injury received by reason of, or in the course of work performed under this 178
4 Agreement due to the acts or omissions of Consultant or Consultant’s officers, employees, agents or subcontractors. The provisions of this Section survive completion of the services or the termination of this Agreement. The acceptance of such services shall not operate as a waiver of such right of indemnification.

14.2 With regard to Consultant’s professional services, Consultant agrees to use that degree of care and skill ordinarily exercised under similar circumstances by members of Consultant’s profession, including without limitation adherence to all applicable safety standards. To the fullest extent permitted by law, Consultant shall indemnify, defend (with independent counsel approved by the Town) and hold harmless the Town, and its elective or appointive boards, officers, and employees from and against all liabilities, including without limitation all claims, losses, damages, penalties, fines, and judgments, associated investigation and administrative expenses, and defense costs, including, but not limited to, reasonable attorneys’ fees, court costs and costs of alternative dispute resolution regardless of nature or type that arise out of, pertain to, or relate to the negligence, reckless, or willful misconduct of Consultant or Consultant’s officers, employees, agents or subcontractors. The provisions of this Section survive completion of the services or the termination of this Agreement. The acceptance of said services and duties by Town shall not operate as a waiver of such right of indemnification.

14.3 The Town does not and shall not waive any rights that they may possess against Consultant because of the acceptance by the Town or the deposit with the Town of any insurance policy or certificate required pursuant to this Agreement. This hold harmless and indemnification provision shall apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost or expense.

15. INSURANCE REQUIREMENTS. Consultant agrees to have and maintain the policies set forth in Exhibit B entitled “INSURANCE REQUIREMENTS,” which is attached hereto and incorporated herein. All policies, endorsements, certificates, and/or binders shall be subject to approval by the Town Attorney as to form and content. These requirements are subject to amendment or waiver only if so approved in writing by the Town Attorney. Consultant agrees to provide Town with a copy of said policies, certificates, and/or endorsements before work commences under this Agreement. A lapse in any required amount or type of insurance coverage during this Agreement shall be a breach of this Agreement.

16. SUSPENSION. The Town may, in writing, order Consultant to suspend all or any part of Consultant’s services under this Agreement for the convenience of the Town, or for work stoppages beyond the control of the Town or the Consultant. Subject to the provisions of this Agreement relating to termination, a suspension of work does not void this Agreement. In the event that work is suspended for a period exceeding 120 days, the schedule and cost for completion of the work will be adjusted by mutual consent of the parties.
179
5 17. TERMINATION.

17.1 This Agreement may be terminated by either the Town or Consultant following thirty (30) days written notice of intention to terminate. In the event the Agreement is terminated, Consultant shall be paid for any services properly performed to the last working day the Agreement is in effect. Consultant shall substantiate the final cost of services by an itemized, written statement submitted to the Town. The Town’s right of termination shall be in addition to all other remedies available under law to the Town.

17.2 In the event of termination, Consultant shall deliver to the Town copies of all reports, documents, computer disks, and other work prepared by Consultant under this Agreement, if any. If Consultant’s written work is contained on a hard computer disk, Consultant shall, in addition to providing a written copy of the information on the hard disk, immediately transfer all written work from the hard computer disk to a flash drive or similar device and deliver said device to Town. Town shall not pay Consultant for services performed by Consultant through the last working day the Agreement is in effect unless and until Consultant has delivered the above-described items to the Town.

18. CONSULTANT’S BOOKS AND RECORDS. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, supplies, materials, or equipment provided to Town for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant pursuant to this Agreement.

19. NON-WAIVER OF TERMS, RIGHTS AND REMEDIES. Waiver by either party of any breach or violation of any one or more terms or conditions of this Agreement shall not be deemed to be a waiver of any other term or condition contained herein or a waiver of any subsequent breach or violation of the same or any other term or condition.

Acceptance by the Town of the performance of any work or services by Consultant shall not be deemed to be a waiver of any term or condition of this Agreement. In no event shall the Town’s making of any payment to Consultant constitute or be construed as a waiver by the Town of any breach of this Agreement, or any default which may then exist on the part of Consultant, and the making of any such payment by the Town shall in no way impair or prejudice any right or remedy available to the Town with regard to such breach or default.
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6 20. NOTICES. Any notices, bills, invoices, reports or other communications required or permitted to be given under this Agreement shall be given in writing by personal delivery, by facsimile transmission with verification of receipt or by U.S. mail, postage prepaid, and return receipt requested, addressed to the respective parties as follows:

To Town:

Town Manager
Town of Portola Valley
765 Portola Road
Portola Valley, CA 94028
To Consultant:

Urban Planning Partners
Curtis Banks
388 17th Street, Suite 230
Oakland, CA 94512
Notice shall be deemed communicated on the earlier of actual receipt or forty-eight (48) hours after deposit in the U.S. mail, the date of delivery shown on deliverer’s receipt, or by acknowledgment of facsimile transmission.

21. NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY. In the performance of this Agreement, Consultant shall not discriminate against any employee, subcontractor or applicant for employment because of race, color, creed, religion, sex, marital status, sexual orientation, national origin, ancestry, age, physical or mental handicap, or medical condition. Consultant will take affirmative action to ensure that employees are treated without regard to race, color, creed, religion, sex, marital status, sexual orientation, national origin, ancestry, age, physical or mental handicap, or medical condition.

22. ATTORNEYS’ FEES; VENUE. In the event that any party to this Agreement commences any legal action or proceeding to enforce or interpret the provisions of this Agreement, the prevailing party in such action or proceeding shall be entitled to recover reasonable attorneys’ fees and other costs incurred in that action or proceeding, in addition to any other relief to which the successful party may be entitled. The venue for any litigation shall be San Mateo County.

23. COOPERATION. In the event any claim or action is brought against the Town relating to Consultant’s performance or services under this Agreement, Consultant shall render any reasonable assistance and cooperation which Town might require.

24. EXHIBITS, PRECEDENCE. All documents referenced as exhibits in this Agreement are hereby incorporated into this Agreement.

25. PRIOR AGREEMENTS AND AMENDMENTS; ENTIRE AGREEMENT.

This Agreement, and any other documents incorporated herein by specific reference, represent the entire and integrated agreement between the Town and Consultant. This Agreement supersedes all prior oral and written negotiations, representations or agreements. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may only be modified by a 181
7 written amendment duly executed by the parties to this Agreement. Any amendment relating to compensation for Consultant shall be for only a not-to-exceed sum.

IN WITNESS WHEREOF, the Town and Consultant have executed this Agreement effective as of the date written above.

TOWN: CONSULTANT:

By: _______________________
Judith Hasko
Mayor
By: _______________________
Name (printed):________________
Title: _______________________
EIN _______________________
ATTEST:
____________________________
Veronica Dao
Town Clerk
APPROVED AS TO FORM:
____________________________
Catherine C. Engberg
Town Attorney
182
November 5, 2025
Darcy Smith, Town Manager
Planning & Building Department
765 Portola Road
Portola Valley, CA
RE: TOWN OF PORTOLA VALLEY SAFETY ELEMENT UPDATE SCOPE OF WORK Dear Darcy:

Urban Planning Partners, Inc., is pleased to submit the attached Proposal for Services to support the Town of Portola Valley in completing its Safety Element Update. Below we’ve outlined a brief scope of work and the associated fee for services.

The project will be led by Curtis Banks, Associate Principal, who will serve as Project Director. Carla Violet, Associate Principal, will act as Project Manager, working closely with Curtis to oversee day-today coordination and overall progress. Claire Mei, Associate Planner, will support Carla in preparing the amendments. We’ve also brought on Atlas Planning to provide technical expertise.

We understand that this project will happen concurrently with the Housing Element Amendments.

This proposal confirms the availability of key staff to conduct the work necessary to complete the Safety Element Update in a timely and efficient manner. The level of participation by each key staff member is detailed in the budget/timetable attached.

We look forward to partnering with the Town of Portola Valley on this important effort.

Sincerely,
URBAN PLANNING PARTNERS, INC.

Curtis Banks, Carla Violet,
Project Director Project Manager
[email protected] [email protected]

EXHIBIT A
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1 S COPE OF WORK
This section outlines Urban Planning Partners’ recommended scope of work to support the Town of Portola Valley with completing its Safety Element Update.

TASK 1. PROJECT MANAGEMENT AND COORDINATION
Urban Planning Partners will undertake a variety of general management and coordination services throughout the Safety Element Update process. Carla Violet, Project Manager, will serve as the primary point of contact and ensure effective coordination among Town staff, Atlas Planning, and State agencies.

Urban Planning Partners’ project management responsibilities will include:
 Coordinating regularly with Town staff.
 Establishing and facilitating check-in meetings to ensure alignment and progress.  Providing concise updates to Town staff, as desired.
 Completing clear projections and allocations of work for all staff to ensure project deadlines are met or exceeded in a timely manner in conjunction with other project work.  Overseeing a thorough quality assurance and quality control (QA/QC) process including senior level review on all deliverables.
 Coordinate with Cal FIRE, State Board of Forestry and Fire Protection, and the California Geologic Survey (CGS) to facilitate review and input on the Safety Element.

Urban Planning Partners has assumed every-other week (2 times a month), one-hour meetings with key Town staff contacts for the duration of the project to ensure continued collaboration and progress.

TASK 2. PREPARE SECOND PUBLIC DRAFT SAFETY ELEMENT
In 2022, Urban Planning Partners and Atlas Planning prepared the first Public Draft Safety Element, which was circulated for public review in October 2022. The Town received comments from the public, and key Town committees, including: the Geologic Safety Committee, Wildfire Preparedness Committee/Community Planning Assistance for Wildfire (CPAW), and Emergency Preparedness Committee. A list of compiled comments was prepared before the project was paused in July 2023.

Staff and the Town Council Subcommittee will review the list of compiled comments with the relevant committees and incorporate revisions as needed into an Administrative Second Public Draft Safety Element. The Town will provide the administrative draft (in MS Word format) to Urban Planning Partners by December 31, 2025.

Urban Planning Partners with support from Atlas Planning will:
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2  Review and revise the draft to ensure consistency with State law and State agency requirements.
 Ensure internal consistency with the Town’s General Plan and Housing Element updates.  Provide updated GIS files for Town staff to use in updating the CAL FIRE map, if needed. The Town staff will prepare GIS maps and provide to UPP for evaluation to ensure that they are adequate.
 Assist Town staff in coordinating with the Woodside Fire Protection District (WFPD) for final review, and incorporate any required revisions requested by the Fire Marshal  Incorporate any required revisions requested by the Town Geologist.

This task assumes that the Town Geologist will review the Second Public Draft prior to Council consideration. The Town staff will coordinate the review of the Town Geologist, under a separate contract with the Town.

If additional maps are required beyond those assumed, this will constitute an extra service requiring separate authorization.

TASK 3. ASSIST PLANNING COMMISSION AND TOWN COUNCIL STUDY SESSION

REVIEW OF THE SECOND PUBLIC DRAFT SAFETY ELEMENT
Urban Planning Partners and Atlas Planning will provide the Second Public Draft Safety Element to the Town, who will publish online and schedule the item for Joint Planning Commission and Town Council Study Session to provide direction to the Town staff and UPP as to what (if any) final changes will be made to the Second Public Draft Safety Element. The meeting is intended to ensure that the Town Council provides this direction to avoid any additional revisions made to the Safety Element after submittal to the State for their review. The Second Public Draft Safety Element will be posted online approximately 30 days prior to the Study Session, to ensure that the public and Town committees can review in advance of the meeting.

Our team will:
 Prepare a technical PowerPoint presentation (15–20 slides) summarizing key updates and findings.
 Present jointly with Town staff at the Joint Planning Commission and Town Council meeting.  Compile and summarize all public, committee, Planning Commission, and Town Council comments and provide them to Town staff and the Town Council Subcommittee. Town staff may assist with this compilation as well.
 Incorporate Town feedback and finalize a list of changes in two categories: 1) simple edits that can be made within the current scope and budget or 2) more significant revisions that would require the authorization of Optional Task 3A below.

Urban Planning Partners will also prepare a brief CEQA Memo documenting that the Administrative Second Public Draft Safety Element is exempt from CEQA. 185
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3 Optional Task 3A – Prepare a Third Public Draft Safety Element If the Town Council or public comments warrant significant revisions, Urban Planning Partners and Atlas will prepare a Third Public Draft Safety Element under a separate authorization.

TASK 4. STATE REVIEW AND REVISIONS TO FINAL DRAFT SAFETY ELEMENT Atlas Planning and Urban Planning Partners will finalize the Safety Element and submit it to the mandated State agencies for review (Cal FIRE, State Board of Forestry and Fire Protection, and CGS) for formal review. Cal FIRE recommends submittal at least 90 days prior to adoption and 30 days prior to the Board of Forestry meeting.

Optional Task 4A – Prepare a Second Final Draft Safety Element If State agencies request revisions following their review, Urban Planning Partners and Atlas will prepare a Second Final Draft Safety Element as an optional task. Town staff will provide direction on this, taking into consideration whether the State is requiring revisions, or just recommending them as optional.

TASK 5. FINAL SAFETY ELEMENT AND ADOPTION
Urban Planning Partners and Atlas will assist with the final adoption process for the Safety Element, including participation in one Planning Commission and one Town Council hearing.

Our team will:
 Prepare one technical PowerPoint presentation (15–20 slides) to be used at each adoption hearing.
 Present jointly with Town staff at both hearings.

This task assumes no further revisions to the Safety Element after the State review and Planning Commission and Town Council public hearings. Any requested revisions following these hearings will require separate authorization.

ESTIMATED FEE
The estimated fee to complete the scope of work outlined in this proposal (with optional tasks included) is $49,994.

A detailed fee breakdown is provided in the attached table. The work will be performed on a time-andmaterials basis, not to exceed the estimated amount without prior written approval. 186
Portola Valley Safety Element Update Estimated Fee
Curtis Banks
Project Director
Carla Violet
Project Manager
Claire Mei
Associate Planner
Aaron Pfannenstiel,
Project Manager
Associate Planner
Hourly Rate: $250 $250 $160 $250 $145
Task 1. Project Management and Coordination
Team Biweekly Meetings (12) and Project Management 4 15 15 7,150 $ 10 - $ 2,500 $ 9,650 15 4 15 $ 7,150 10 - $ 2,500 $ 9,650
Task 2. Prepare Second Public Draft Safety Element
Coordinate w/WFPD on Town Fire Map Updates (based on recent CalFire maps) 4 - 2 $ 1,320 2 - $ 500 $ 1,820 Review & Revise Second Public Draft Safety Element (excluding figures) 6 - 10 3,100 $ 6 8 $ 2,660 $ 5,760 10 - 12 $ 4,420 8 8 $ 3,160 $ 7,580
Task 3. Assist PC & TC Study Session Review of the Second Public Draft Safety Element One (1) Joint PC and TC Study Session (incl PPT Presentation) 8 - 8 $ 3,280 8 - $ 2,000 $ 5,280 Compile Final Comments 4 - 4 $ 1,640 4 6 $ 1,870 $ 3,510Brief CEQA Exemption Memo 6 - 4 $ 2,140 2 - $ 500 $ 2,640 18 - 16 $ 7,060 14 6 $ 4,370 $ 11,430
Task 4. State Review and Revisions to Final Draft Safety Element Finalize Safety Element and send to CalFire for 60-day review and California Geologic Survey (CGS) 2 - 4 $ 1,140 2 6 $ 1,370 $ 2,510 2 - 4 $ 1,140 2 6 $ 1,370 $ 2,510
Task 5. Final Safety Element and Adoption
One (1) PC and one (1) TC Adoption Meeting (incl PPT Presentation) - 16 8 $ 5,280 16 4 $ 4,580 $ 9,860 16 - 8 $ 5,280 16 4 $ 4,580 $ 9,860

TOTAL LABOR ESTIMATE
hours 61 4 55 50 24
$ 15,250 1,000 8,800 $ 25,050 12,500 3,480 $ 15,980 $ 41,030

OPTIONAL TASKS
Task 3A. Prepare Third Public Draft Safety Element 6 - 8 $ 2,780 2 4 $ 1,080 $ 3,860 Task 4A. Prepare Second Final Draft Safety Element (w/responses to CalFire Edits (if any)) 5 - 6 $ 2,210 2 4 $ 1,080 $ 3,290 $ 4,990 $ 2,160 $ 7,150

DIRECT COSTS
Subconsultant Mark-up (10%) $ - 1,814 $ $ 1,814
$ 1,814 $ - $ 1,814
TOTAL ESTIMATED FEE w/OPTIONAL TASKS
$ 31,854 $ 18,140 $ 49,994
*Note all meeting participation is assumed to be virtual UPP Total
TASK 1 SUBTOTALTASK 2 SUBTOTALTASK 3 SUBTOTALTASK 4 SUBTOTAL

TOTAL OPTIONAL COSTS

TOTAL DIRECT COSTS
TASK 5 SUBTOTAL
Team Total
Urban Planning Partners Atlas Planning
Atlas Planning Total
11/5/2025
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RESUMES
188

CURTIS BANKS, AICP
Associate Principal
Curtis has over 30 years of experience with expertise in planning and community development, including planning, building, affordable housing, and code enforcement. He has served as a Community Development Director and has worked in a variety of capacities. Curtis has experience interacting closely with elected officials, senior management, commissioners, city departments, state and local agencies, and members of the public. He is skilled at leading staff, preparing budgets, and managing complex planning projects. He has managed comprehensive General Plan updates, Downtown Development Plan updates, Neighborhood Plans, and the preparation of ordinances. Curtis has worked on a wide variety of residential and nonresidential projects, included mixed‐use projects, and has overseen the management of affordable housing programs. Curtis was the project managerforthe redevelopment of a 20‐acre industrial site fortheCity of Redwood City. Curtis was also the Project Director for the Saratoga Housing Element Update and EIR, the Portola Valley Housing and Safety Element Updates IS/MND, and the Antioch Housing and Safety Element Updates and EIR.

PROJECT EXPERIENCE
Planning Policy
 MTC/ABAG Alameda County Planning Collaborative Consulting Services | Alameda County, CA
 Antioch Housing Element, General Plan, Zoning Code and Safety Element Update and EIR
 Saratoga Housing Element, General Plan and Safety Element Update and EIR  Portola Valley Housing and Safety Element Update
 Car Free Ramona Street Project | Palo Alto
Contract Planning
 City of Millbrae On Call Contract Planning
 6781 Thorton Avenue Mixed Use Project, Contract Planning, Newark, CA  City of Newark ADU Implementation
 City of Saratoga Housing Element Implementation
 City of Saratoga Contract Planning
 Harbor View Redevelopment Project, Contract Planning, Redwood City, CA  505 East Bayshore Townhouse Project, Contract Planning Redwood City, CA

EDUCATION
Bachelor of Arts, Public Administration
& Political Science | Hayward State
University
Master of Urban & Regional Planning |
San Jose State University
CERTIFICATIONS AND

AFFILIATIONS
Team member since 2019
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CURTIS BANKS | Associate Principal

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Portola Valley City CouncilNovember 12, 2025

Portola Valley City Council
November 12, 2025