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HomeMy WebLinkAbout2020-05-18 City Council Agenda PacketCity Council 1 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Monday, May 18, 2020 Special Meeting Virtual Meeting 5:00 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday 11 days preceding the meeting. ****BY VIRTUAL TELECONFERENCE ONLY*** https://zoom.us/join Meeting ID: 362 027 238 Phone:1(669)900-6833 Pursuant to the provisions of California Governor’s Executive Order N-29-20, issued on March 17, 2020, to prevent the spread of Covid-19, this meeting will be held by virtual teleconference only, with no physical location. The meeting will be broadcast on Cable TV Channel 26, live on YouTube at https://www.youtube.com/c/cityofpaloalto, and Midpen Media Center at https://midpenmedia.org. Members of the public who wish to participate by computer or phone can find the instructions at the end of this agenda. To ensure participation in a particular item, we suggest calling in or connecting online 15 minutes before the item you wish to speak on. TIME ESTIMATES Time estimates are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. HEARINGS REQUIRED BY LAW Applicants and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and up to three minutes for concluding remarks after other members of the public have spoken. Call to Order Closed Session 5:00-6:00 PM Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker. A. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his Designees Pursuant to Merit System Rules and Regulations (Ed Shikada, Rumi Portillo, Molly Stump, Monique LeConge Ziesenhenne, Nick Raisch, Kiely Nose, Gina Roccanova, Charles Sakai) Employee Organizations: Utilities Management and Professional Association of Palo Alto (UMPAPA); Service Employees International Union, (SEIU) Local 521; REVISED 2 May 18, 2020 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Service Employees International Union, (SEIU) Local 521, Hourly Unit; Palo Alto Police Officers Association (PAPOA); Palo Alto Fire Chiefs’ Association (FCA) and Employee Organization: International Association of Fire Fighters (IAFF), Local 1319; Palo Alto Police Manager’s Association (PAPMA) Authority: Government Code Section 54957.6(a) Study Session 6:00-7:00 PM 1.Update to the City's Transportation Analysis Methodology to Comply With Senate Bill 743, Including use of Vehicle Miles Traveled (VMT) for California Environmental Quality Act (CEQA) Review and Level of Service (LOS) Standard for Local Transportation Analysis (Continued From May 4, 2020) Agenda Changes, Additions and Deletions Oral Communications 7:00-7:15 PM Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. Consent Calendar 7:15-7:20 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 2.Adoption of an Ordinance Amending Title 12 of the Palo Alto Municipal Code to set a 120-day Statute of Limitations for Challenges to the City’s Water Service Rates, Wastewater Collection and Disposal Rates, Refuse Rates, Storm Water Management Fees, and Fiber Licensing Service Rates 3.Approval and Authorization for the City Manager or Designee to Execute a Professional Services Agreement With Magellan Advisors, LLC in a Not-to-Exceed Amount of $214,236 for Phase 1 of the Fiber Network Expansion Plan (This item has been removed) 4.Approval and Authorization for the City Manager or Designee to Execute the Following Marketing and Graphics Contracts in a Combined Not-to-Exceed Amount of $290,000 Annually and a Combined Not-to- Exceed Amount of $1,450,000 Over a Five-year Term: A) Eric Goldsberry Art Direction, Contract Number C20176172A; B) Marketing for Change, Contract Number C20176172B; and C) Underground Advertising, Contract Number C20176172C; Finding of California Environmental Quality Act (CEQA) Exemption (This item has been removed) MEMO MEMO Presentation 3 May 18, 2020 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. 5.QUASI-JUDICIAL. 2353 Webster Street [18PLN-00339]: Appeal of Director’s Approval of an Individual Review Application to Demolish an Existing One-story 1,593 Square Foot Home and Construct a Two- story Home (Approximately 3,133 Square Feet) With a Basement and Attached Garage; Approved by the Director of Planning and Development Services on March 17, 2020. Zoning District: Single- family Residential (R-1) City Manager Comments 7:20-7:30 PM Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 7:30-8:30 PM 6.Adoption of Amendments to the City of Palo Alto Tobacco Retail Ordinance (PAMC Chapter 4.64) to Further Restrict Electronic Cigarette Products and Flavored Tobacco Products, Direct Staff to Discuss Amending the Tobacco Retail Permit (TRP) Agreement With the County of Santa Clara, and Updates to Council's Previous Questions on Reducing Youth Tobacco use (Continued From May 18, 2020) Council Member Questions, Comments and Announcements Members of the public may not speak to the item(s) Adjournment AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance. MEMO Presentation Public Comment Public Comment 4 May 18, 2020 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Additional Information Standing Committee Meetings Finance Committee Meeting Cancellation May 19, 2020 City/School Committee Meeting May 21, 2020 Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Informational Report Report to City Council on Accessory Dwelling Unit/Junior Accessory Dwelling Unit Development Activity for Fourth Quarter 2019 Demand Side Management Report for Fiscal Year 2019 Summary of Emerging Needs Fund Allocations to Assist With COVID-19 Response Public Letters to Council Set 1 5 May 18, 2020 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Public Comment Instructions Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom-based meeting. Please read the following instructions carefully. A. You may download the Zoom client or connect to the meeting in- browser. If using your browser, make sure you are using a current, up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers including Internet Explorer. B. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. C. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. D. When called, please limit your remarks to the time limit allotted. E. A timer will be shown on the computer to help keep track of your comments. 3. Spoken public comments using a smart phone will be accepted through the teleconference meeting. To address the Council, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions B-E above. 4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. https://zoom.us/join Meeting ID: 362 027 238 Phone:1(669)900-6833 City of Palo Alto (ID # 11333) City Council Staff Report Report Type: Study Session Meeting Date: 5/18/2020 City of Palo Alto Page 1 Summary Title: Senate Bill 743 Implementation Title: Update to the City's Transportation Analysis Methodology to Comply With Senate Bill 743, Including Use of Vehicle Miles Traveled (VMT) for CEQA Review and Level of Service (LOS) Standard for Local Transportation Analysis (Continued From May 4, 2020) From: City Manager Lead Department: Transportation Department Recommendation Staff recommends that the City Council receive a presentation on: 1. Updating the City’s transportation analysis methodology to implement Vehicle Miles Traveled (VMT) as the metric for conducting analyses of projects, pursuant to the California Environmental Quality Act (CEQA); and 2. Adopting a Council Policy that establishes a standard for vehicular Level of Service (LOS) analyses, consistent with Program T2.3.1 of the Comprehensive Plan Transportation Element. No formal action is requested at this time. Staff will return to Council in June 2020 with a request for action on a VMT threshold of significance for CEQA analyses and a Level of Service Policy for local-level analyses. Executive Summary This staff report provides background information and summarizes key options staff is considering in developing the City’s compliance with changes to CEQA. The focus of CEQA transportation analyses has shifted due to California Senate Bill (SB) adoptions in 2013 and 2018 (SB 743 and SB 375). The previous focus was on driver delay (Level of Service) at intersections. The new focus is on the reduction of greenhouse gas emissions, creation of multimodal transportation networks, and promotion of a mix of land uses that reduces the need to drive. Palo Alto must adopt an official policy regarding the impact threshold criteria to City of Palo Alto Page 2 be applied in CEQA analyses of local development projects by July 1, 2020. Staff is tasked to consider what VMT reduction level to recommend as a CEQA threshold of significance for Council adoption. For reasons stated herein, including consistency with current state guidance, staff anticipates recommending 15 percent below baseline (existing development) VMT as the CEQA VMT reduction threshold for residential and office projects. Background Senate Bill 743 (2013) Senate Bill (SB) 743 required the Governor’s Office of Planning and Research (OPR) to amend the CEQA guidelines with respect to the analysis of potential transportation impacts using an alternative metric to Level of Service (LOS). The legislative intent of this change is to better balance the needs of congestion management with statewide goals related to infill development, promotion of public health through active transportation, and greenhouse gas (GHG) emission reduction targets per SB 375. The California Air Resources Board (CARB) adopted the State’s current GHG reduction targets at the March 22, 2018 Board Hearing. In late 2018, after more than five years of development and public comment, the California Natural Resources Agency adopted OPR’s recommended updates to the CEQA Guidelines. The updated Guidelines became effective on December 28, 2019. The Guidelines now require agencies to use vehicle miles traveled (VMT) as the metric for CEQA transportation analyses by July 1, 2020. Agencies in California may no longer use LOS as a threshold of significance for performing a CEQA analysis of a proposed project after July 1, 2020, although LOS can still be analyzed for other purposes if desired. OPR has posted video presentations explaining the rationale for the move away from LOS and towards VMT. Staff encourages Councilmembers to view these videos in order as they provide an excellent introduction to this topic: • Problems with LOS – https://tinyurl.com/Problems-with-LOS • Benefits of VMT – https://tinyurl.com/Benefits-of-VMT • Methods for Land Use Projects – https://tinyurl.com/Methods-for-Land-Use-Projects Level of Service and TIRE Index Methods The City of Palo Alto currently uses LOS as the primary method for analyzing potential CEQA transportation impacts for all development projects. The City’s CEQA documents also consider the potential for increases in traffic on roadway segments near projects, known as the Traffic Infusion on Residential Environment (TIRE) index. To comply with SB 743, the City, in collaboration with Fehr & Peers (a subconsultant to City’s consultant AECOM), is reviewing existing local and state planning documents and policies. While staff considers appropriate VMT thresholds of significance for CEQA analyses, staff is also considering the appropriate LOS standards to analyze a project’s consistency with City policy. City of Palo Alto Page 3 Greenhouse Gas Emission Reduction The State of California is focused on VMT to achieve the reduction of GHG emissions over time. Recently, the California Air Resources Board (CARB) found that emissions from statewide passenger vehicle travel per capita were increasing. CARB determined that it will not be possible to achieve the State’s 2030 and post-2030 emissions goals without changes to how communities and transportation systems are planned, alongside reductions in single- occupancy vehicle travel and reductions in VMT.1 The SB 375 greenhouse gas reduction targets for our region (the Metropolitan Transportation Commission/Association of Bay Area Governments) were set in 2013 and 2018 as follows: To achieve a 19 percent GHG reduction, the State is promoting the creation of multimodal transportation networks and a finer mix of land uses. And, as noted, the State is requiring jurisdictions to establish a VMT threshold prior to July 1, 2020. Council must establish a VMT threshold of significance for CEQA analyses; however, the Comprehensive Plan directs staff to retain Level of Service as a factor in the City’s consideration of development projects, separate from CEQA. VMT Reduction Threshold and Sustainability and Climate Action Plan Based on the OPR technical advisory document and consistent with other jurisdictions, staff anticipates recommending 15 percent (below existing development VMT) as the CEQA VMT reduction threshold for residential and office projects. Staff’s likely recommendations for initial VMT thresholds to be applied as of July 1, 2020 are consistent with current State guidance. VMT threshold adoption is a necessary first step in a series of Council actions related to transportation in the coming year. 1 California Air Resources Board (Nov. 2018) 2018 Progress Report on California’s Sustainable Communities and Climate Protection Act, pp. 4, 5, 28 available at https://ww2.arb.ca.gov/sites/default/files/2018- 11/Final2018Report_SB150_112618_02_Report.pdf. City of Palo Alto Page 4 Following the 2020 Sustainability and Climate Action Plan (S/CAP) Update, Council will have a chance to again review and adjust the CEQA thresholds to align with S/CAP goals or policies. More detailed information on the S/CAP Update Process is available in a Staff Report to Council in April 2020 (CMR #11201; https://tinyurl.com/SCAP-Update-SR). After Council adopts VMT thresholds in compliance with SB 743 and a Level of Service policy, staff intends to embark upon step 2. That is, staff will bring forward a Transportation Demand Management (TDM) Ordinance, which will include mitigation policies and a menu of mitigation measures for Council consideration. The TDM Ordinance will define VMT reduction and monitoring approaches consistent with CEQA and the City’s Comprehensive Plan. Discussion To assist agencies in establishing a significance threshold and metrics for VMT analysis, OPR issued a guidance document, Technical Advisory on Evaluating Transportation Impacts in CEQA (https://bit.ly/3e32RU9). Staff derived many of the options for establishing a VMT threshold in the City of Palo Alto from this technical advisory document. Staff requests Council consideration in three key areas: methodology/metrics, screening criteria, and thresholds. A Note about Methodology and Metrics Staff has explored options for establishing methodologies and metrics to analyze transportation impacts under CEQA after July 1, 2020. A methodology is the way VMT will be calculated and metrics are the way VMT is measured and reported. Council will not be required to adopt a specific methodology or VMT metric for every CEQA analysis. That is, because the most appropriate methodology or metric varies depending on the proposed land use or type of project, a methodology or metric for a land use plan would be different than for a specific development project. Furthermore, different development projects could require different methodologies and metrics. The information presented at the end of this report provides Council with an understanding of how staff would approach most development projects including residential, office, and retail uses. More detailed information on methodology and metrics can be found in Attachment A. Screening OPR recommends a screening process for project types known to be low VMT generators. Projects that meet screening criteria can be determined to have a less than significant VMT impact without conducting a quantitative VMT analysis unless there is information indicating that the project is unique in some way that determines it may not be a low VMT generator. The City could choose to screen out some, or all, of these project types to enable only a qualitative discussion in their associated CEQA documents. This assumes that cumulative VMT impacts are consistent with long-term air pollution and GHG reduction expectations. This screening approach would enable project streamlining by eliminating the need to prepare a quantitative analysis for low VMT-generating projects that meet the screening criteria. OPR’s City of Palo Alto Page 5 Technical Advisory document includes the following list of project types presumed to have a ‘less than significant’ impact on VMT and that the City may choose to screen: • Small Projects – Projects that generate or attract fewer than 110 trips per day. Based on research for small project triggers, this may equate to nonresidential projects of 10,000 square feet or less and residential projects of 20 units or less. • Projects Located in Low-VMT Areas – Residential and office projects located in low-VMT areas that incorporate similar features to the nearby developments (i.e., density, mix of uses, and transit accessibility) on the basis that the project will exhibit similar, low VMT. • Projects in Proximity to a Major Transit Stop – Projects that are located within a half mile of an existing or planned high-quality transit corridor or major transit station. This includes the existing Downtown Palo Alto Caltrain station, the California Avenue Caltrain station, and bus stops for bus routes with headways of 15 minutes or less. OPR identifies additional criteria that must be met to make this determination, including high density (minimum floor area ratio of 0.75), parking supply (i.e., less than required based on City code), consistency with Plan Bay Area 2040 (http://2040.planbayarea.org/), and no effect on existing affordable residential housing. • Affordable Housing – Residential projects containing a specific amount of affordable housing (based on local circumstances and substantial evidence as determined by the City); this is on the basis that affordable housing generates less VMT than market-rate housing. Affordable housing located within infill locations generally improves jobs- housing balance and may thus result in shorter commutes for low-income workers. • Local-Serving Retail Projects – The City of Palo Alto may also screen local-serving retail projects of less than 50,000 square feet, on the basis that they attract trips that would otherwise travel longer distances. Staff would evaluate both the project characteristics and the context of the project location to determine whether a given retail project is local-serving. Regional-serving retail projects would not be subject to screening. • Transportation Projects – Transit projects, bicycle and pedestrian projects, and roadway projects that do not result in an increase in vehicle capacity or VMT. When staff returns to Council in June, the Council will need to determine which, if any, of the above screening conditions could apply to future development projects, exempting them from quantitative VMT analyses that will likely show a less-than-significant impact. Screening of such projects would be supported by a qualitative discussion of the project, including its site and location characteristics. The discussion would support the conclusion that a given City of Palo Alto Page 6 project is a low VMT generator and can be screened from a quantitative VMT assessment. Threshold OPR’s technical advisory document recommends thresholds that vary by project and land use type. The thresholds are generally based on applying Total VMT or VMT efficiency metrics. For residential and office projects, OPR indicates that a “per capita or per employee VMT that is 15 percent below that of existing development may be a reasonable threshold.” The recommended OPR thresholds are based on substantial evidence that aligns CEQA transportation analysis to meet statewide targets for GHG emission reductions. This overarching goal is consistent with the City’s Comprehensive Plan 2030. The Comp Plan includes several goals and policies that strive to reduce GHG emissions and air quality impacts, reduce single-occupancy vehicle use, and encourage multi-modal transportation. The City’s Sustainability and Climate Action Plan (S/CAP) Framework has GHG emission reduction goals that are more aggressive than state goals. The 15 percent VMT reduction target could be refined in the future to reflect GHG emission reduction goals in the S/CAP that will be completed in 2021. In order to align the City with current state VMT reduction targets before July 1, 2020, staff anticipates recommending Council adopt initial thresholds consistent with OPR’s recommendations. For individual land use projects that are not screened out and require a quantitative VMT assessment, this would mean the following: • Residential Projects – A proposed project exceeding a level of 15 percent below existing (baseline) home-based VMT per resident would indicate a significant transportation impact. • Office Projects – A proposed project exceeding a level of 15 percent below existing (baseline) regional home-based work VMT per employee would indicate a significant transportation impact. • Retail projects – A proposed project that results in a net increase in total VMT would indicate a significant transportation impact. • Mixed-Use Projects – The City will apply one of the above residential, office, or retail thresholds for mixed-use projects with a dominant use. If there is more than one primary land use type, each of the primary land uses would be evaluated independently by applying the relevant threshold above. • Other Project Types – The City will either develop an ad hoc (i.e., project-specific) VMT threshold for a unique land use type or apply the most applicable of the above thresholds depending on project characteristics. • Redevelopment Projects – Where a project replaces existing VMT-generating land uses, if the replacement leads to a net overall decrease in VMT, the project would cause a less City of Palo Alto Page 7 than significant VMT impact. If the redevelopment project leads to a net overall increase in VMT, it would cause a significant VMT impact. When applying the above thresholds, a project’s VMT is compared to a baseline VMT value that is typically either a citywide or regional average for a land use type. The baseline VMT represents existing conditions and estimated changes over time. The values presented below represent conditions of the 2015 baseline year. As VMT assessments are conducted over the coming years, the VMT baseline values will be updated. VTA has provided baseline VMT data from the VTA travel demand model for residential and office uses at both the Palo Alto citywide and Santa Clara countywide scales. This data provides an indication of VMT characteristics for residential and office uses in the city, compared to the county average, which is similar to the regional average. As seen in the table below, residential uses in Palo Alto generate about 29 percent less VMT per capita than the county (or regional) average. Office uses in Palo Alto generate similar VMT per employee as the county (or regional) average. Consistent with the Council’s stated objective to facilitate the implementation of new housing and integration of jobs, staff anticipates recommending that the VMT baseline for residential uses be measured against the regional VMT per capita, and offices uses be measured against the regional VMT per employee. This recognizes that residential uses in Palo Alto are generally low VMT generators because it places housing in closer proximity to jobs, and therefore would be less likely to result in a significant VMT impact. 2015 Baseline VMT Palo Alto Santa Clara County Home-Based VMT Per Capita 9.48 13.33 Employment-Based VMT Per Employee 16.71 16.64 The City is currently preparing an update to its S/CAP. As a leader in climate action, the City of Palo Alto is likely to update its S/CAP to establish more stringent targets for GHG and air emission reductions beyond the state targets. Because of the pressing state deadline for establishing a VMT threshold, and because the City’s S/CAP update is still in progress, staff anticipates returning to Council before July 1, 2020 and recommending that Council adopt thresholds that are consistent with the state’s recommendations. However, upon completion of the S/CAP, staff would return to the Council. Council could then determine if the City’s VMT thresholds should be revised to better align with the City GHG reduction goals, based on the target reductions identified in CEQA analysis for the S/CAP and the adopted S/CAP. Mitigation Options If a project is determined to result in a significant VMT impact, it requires the identification of mitigation measures to avoid or substantially reduce these effects. City of Palo Alto Page 8 The most common strategies for mitigating VMT impact are to: 1) change the project land use mix or density, 2) reduce proposed vehicle parking supply levels, 3) implement on-site or off- site capital improvements for transit, bicycle, or pedestrian travel, and/or 4) implement trip reduction programs as described in a Transportation Demand Management (TDM) program. TDM programs can include several components such as telecommuting, transit subsidies, shuttles, carpool matching, parking cash-out programs, and unbundled parking. Mandated in the City’s current Municipal Code and further defined in the City’s Comprehensive Plan Policy T1.2.3, is the following TDM requirement for certain projects: A project is subjected to a specific percentage reduction in peak hour motor vehicle trips using TDM measures if the project: • generates 50 or more net new peak hour trips, or • claims a reduction in net new trips due to proximity to public transit, or • requests a parking reduction. After adoption of changes in the City’s transportation analysis methodology and process to comply with SB 743, staff will return to Council with a TDM Ordinance. The ordinance will include mitigation measures designed to effectively reduce VMT and a monitoring structure to ensure projects with TDM plans remain compliant with CEQA. Level of Service (LOS) Analysis Palo Alto’s Comprehensive Plan Program T2.3.1 states, “When adopting new CEQA significance thresholds for VMT for compliance with SB 743 (2013), adopt standards for vehicular LOS analysis for use in evaluating the consistency of a proposed project with the Comprehensive Plan, and also explore desired standards for MMLOS, which includes motor vehicle LOS, at signalized intersections.” While agencies may no longer use LOS as a threshold for CEQA analysis, the City intends to retain LOS as a metric for analyzing projects subject to CEQA in conformance with Policy T2.3 and Program T2.3.1. For more background information on LOS, the Council had a study session in 2016 on LOS (https://www.cityofpaloalto.org/civicax/filebank/documents/53796) Currently, the City follows methods and metrics for analyzing LOS like those set forth in VTA’s Congestion Management Program (CMP). Staff will return to Council in June with this information together with a proposed LOS policy for the Council’s consideration, while staff presents recommended VMT screening criteria and significance thresholds under CEQA. VMT Methodology and Metrics City of Palo Alto Page 9 Methodology This section is provided as background to understanding VMT methodology and metrics. Aside from screening, Council will not be asked to approve methodology or metrics since these may vary from project to project. CEQA requires environmental analyses to reflect a “good faith effort at full disclosure.” Lead agencies should not truncate any VMT analysis because of jurisdictional or other boundaries. For example, agencies should not fail to count the portion of a trip that falls outside the jurisdiction or discount the VMT from a trip that crosses a jurisdictional boundary. Thus, where existing methodologies can estimate the full extent of vehicle travel from a project, CEQA specifies that a lead agency should apply them to do so. The following describes both a screening methodology and a quantitative VMT evaluation methodology. • Screening Methodology: To identify projects that could be screened from a quantitative VMT analysis, the Santa Clara Valley Transportation Authority (VTA) is leading the development of a web-based, Santa Clara Countywide VMT Estimation Tool. This tool will provide the basis for identifying Palo Alto land uses that are low VMT generators and/or within a transit priority area. Such uses could thus be screened out from preparing a quantitative VMT analysis. For projects that are screened out, the City would provide a qualitative discussion of the project characteristics. The qualitative discussion would form the basis for determining that the project is presumed to have a less than significant VMT impact. The VTA’s estimation tool is an effort to streamline the process by determining whether a project is likely to result in significant VMT impacts. Staff anticipates the tool will be complete and available for use by July 1, 2020. More information on the VMT Estimation Tool can be found in Attachment B. • Quantitative Methodology: For larger or more unique land development projects that are not screened out, a travel demand model of regional scope should be used to develop quantitative VMT forecasts. A model allows for a more complete accounting of all vehicle trips and trip lengths. A model can produce estimates for the project’s cumulative impacts on VMT that account for changes in behavior. These models can also account for the potential induced travel effects of a project on VMT. For Palo Alto, this would mean using either the Santa Clara Valley Transportation Authority (VTA) or Metropolitan Transportation Commission (MTC) travel models. The VTA model has a substantially more refined transportation network in the City of Palo Alto than the MTC model does. Therefore, the VTA tool would be a preferred tool for most projects. City of Palo Alto Page 10 Due to the level of effort involved in creating and maintaining its own forecasting model, staff anticipate utilizing: • The VTA travel model for preparing quantitative VMT forecasts for large or unique projects, and • The VTA VMT estimation tool for screening land use projects that would be low VMT generators and/or projects located in a transit priority area and thus presumed to have a less than significant impact. Metrics The City may assess projects based on a preferred form of the VMT metric. The following section discusses two options for measuring VMT and several options for reporting VMT where a quantitative estimate of VMT is required for a project. The metric that will be applied for CEQA studies will depend on the type of project evaluated, its scale, and characteristics. There are two options for measuring or calculating VMT: project-generated VMT (which measures total or partial amount of travel to and from the project) and project’s effect on VMT (which measures how the project changes travel in a given geographic area, typically at a city, county, or regional scale, also known as “boundary VMT”). Each VMT metric typically requires the use of a travel forecast model. Project-generated VMT measures the amount of vehicle travel generated by a project (i.e., number of vehicle trips multiplied by their corresponding trip lengths). These calculations are usually performed using outputs from a travel forecasting model. A total project-generated VMT metric is often calculated for land use projects as a key input to CEQA analyses of air quality, GHG, and energy impacts. A partial project-generated VMT metric is often used for screening of certain land use types such as residential and office uses. Project’s effect on VMT is measured by comparing all VMT on roadways within a selected area or boundary (i.e., city, county, or region) for scenarios without and with a project or plan. It is forecasted using a travel demand model and provides a more complete evaluation of the potential effects of land use projects or a land use plan. It captures the combined effect of new VMT, shifting of existing VMT to/from other neighborhoods, and/or shifting of existing VMT to alternate travel routes or modes. Projects’ effect on VMT would be evaluated for retail uses and large development projects that would result in a significant change in the city’s jobs-housing balance. A project’s effect would be evaluated to measure potential VMT impacts for transportation projects that add roadway capacity or otherwise induced vehicle travel. It is also the approach that would be used where a cumulative analysis of VMT is required, likely for office or regional-serving commercial uses. There are also several options for reporting VMT: City of Palo Alto Page 11 • total VMT, • partial VMT (i.e., only light duty vehicles, by trip purpose), and • VMT as an efficiency metric (i.e., VMT per capita). New land use projects accommodate population and employment growth; this growth generates new VMT (i.e., a new office building resulting from a land use rezone will generate new vehicle trips and VMT). Whether a project contributes to a more efficient land use pattern (i.e., one that requires less vehicle travel compared to similar land uses) can be determined by using a VMT efficiency metric. Efficiency metrics express this total increase in VMT relative to the increase in residents and employees (VMT per resident, or VMT per worker). Total VMT metrics include all types of VMT captured by a travel forecasting model, regardless of the type of vehicle or the trip’s purpose. In practice, this means the metric includes visitor trips, medium-duty and heavy-duty vehicles, public transit buses, and other types of vehicle miles, miles that might not be captured in the most common partial VMT metrics. Total VMT is a metric that would be estimated for retail and potentially large mixed-use projects, land use plans (i.e., Comprehensive Plan, Specific Plans, etc.), and transportation projects. Such projects would require a quantitative VMT assessment and have the potential to influence vehicle travel associated with neighboring land uses and/or displace other existing trips within the region. Partial VMT is a metric that involves combining only a subset of the VMT generated by vehicle trips, vehicle types, land uses, and/or trip purposes associated with a land development project. Examples include accounting only for: • light-duty vehicles (as recommended by OPR for residential and office uses), • trips made between home and work (as recommended by OPR for office uses), or • trips associated with a dominant land use type for a multi-use project. The following VMT efficiency metrics (i.e., VMT per capita) are recommended by OPR for residential and office projects. The VTA’s VMT tool provides existing VMT values for the following VMT efficiency metrics by city. The VTA model can be used to provide a project specific estimation of these VMT metrics for future projects in Palo Alto. • Home-based VMT per resident (residential projects) reflects how close households are to common destinations, as well as the available transportation options. The trip type is specific to local residents, and it helps to compare residential projects across different locations. This method answers the question, “Do people living here drive more or less on average compared to other places?” City of Palo Alto Page 12 • Home-based VMT per employee (office projects) reflects how close a workplace is to places where employees live. The trip type is specific to work trips, and it helps to compare employment projects across different locations. This method answers the question, “Do people working here drive more or less during their commutes compared to workers in other places?” For most single-use projects, using a VMT efficiency metric is the most straightforward way to analyze project VMT, and is the metric recommended by OPR in its technical advisory document. Policy Implications The City’s Comprehensive Plan 2030 already acknowledged and incorporated the regulatory changes mandated by SB 743. While the Comprehensive Plan noted that VMT would be used as the metric for analyzing potential transportation impacts under CEQA, the Plan directed staff to adopt LOS standards (and consider multi-modal LOS standards) to analyze the potential for local-level project impacts. Resource Impact This work to develop SB 743 methodology, thresholds, and TDM/mitigation measures is funded through the current S/CAP consultant contract with AECOM. (Fehr & Peers is subconsultant to AECOM.) Transitioning to the use of the VMT metric and thresholds would likely involve the use of the forthcoming VTA VMT estimation tool and staff training. Along with other jurisdictions in Santa Clara County, the City paid additional Congestion Management Program (CMP) dues to VTA in Fiscal Year 2020 (FY20) toward development of the VMT tool and will pay VTA for a license to use the VMT tool. Training costs would be absorbed by the Office of Transportation and Planning and Development Services Department. The cost of performing VMT and other environmental analysis under CEQA for private development projects would be billed to applicants in accordance with the City’s standard application review cost recovery process. Timeline Staff will work with its consultant to further study VMT thresholds. Staff will return to Council before July 1, 2020 with a recommendation and resolution to adopt screening criteria and VMT thresholds in compliance with SB 743 and a LOS policy. The timeline for Council review and discussions of a Transportation Demand Management Ordinance and mitigation measures will follow in the fall. Following S/CAP Update adoption, staff will return to Council for direction on whether to adjust CEQA thresholds to align with S/CAP policies. Environmental Review The adoption of a new transportation threshold of significance under the California City of Palo Alto Page 13 Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15064.7 does not require environmental review and is not a “project” pursuant to State CEQA Guidelines Sections 15060 (c)(3) and 15378. The establishment and implementation of a VMT threshold is a state-mandated requirement under SB 743 and Section 15064.3 of the CEQA Guidelines. Attachments: Attachment A: SB 743 Summary Memo for Council Study Session (PDF) Attachment B: Santa Clara Countywide VMT Estimation Tool (PDF) 332 Pine Street | 4th Floor | San Francisco, CA 94104 | (415) 348-0300 | Fax (415) 773-1790 www.fehrandpeers.com Memorandum Date: April 17, 2020 To: Sylvia Star-Lack and Joanna Chan, City of Palo Alto From: Bob Grandy, Daniel Rubins, and Teresa Whinery, Fehr & Peers Subject: Summary of Key Decisions for SB 743 Implementation in the City of Palo Alto – for May 4 City Council Study Session SF20-1094 This memorandum summarizes the key decisions that are required for implementation of Senate Bill (SB) 743 within the City of Palo Alto. SB 743 eliminates the use of automobile delay from the CEQA environmental review process and the determination of CEQA transportation impacts. The new metric required by the CEQA Guidelines is vehicle-miles traveled (VMT). The shift from automobile delay to VMT changes the focus of transportation impact analysis in CEQA from measuring impacts to drivers, to measuring the impact of driving. SB 743 takes full effect on July 1, 2020; after that time, all transportation impact analysis for CEQA must rely on VMT. CEQA Statute Section 21099(b)(2) states that upon certification of the 2018 CEQA Guidelines, LOS shall not be considered a significant impact on the environment. CEQA transportation studies should continue to evaluate the effect of a project on transit, pedestrian, and bicycle service or facilities as well as safety. As described in this memorandum, SB 743 has ramifications for a range of City processes, including but not limited to the CEQA process, the entitlements review process, and the traffic impact fee. Key Decisions for SB 743 Implementation Changing the metric used to determine significant transportation impacts requires the City to provide guidance to project sponsors and environmental consultants on the following items: • Metrics, or how VMT is presented; • Screening, or determining which projects require quantitative or qualitative VMT analysis; Key Decisions for Palo Alto SB 743 Implementation April 17, 2020 Page 2 of 17 • Methods, or how VMT will be calculated; • Thresholds, or how much VMT is determined to have a significant impact on the environment; and, • Mitigation Options, or how project sponsors can address significant VMT impacts related to their projects. In addition, each of the above decisions must include guidance related to three separate project types: • Land Use Projects, including development projects for a variety of land uses; • Land Use Plans, including future Comprehensive Plan updates and future Specific Plans, Area Plans, and Precise Plans; and, • Transportation Projects, including infrastructure changes, lane additions or removals, bicycle and pedestrian facilities, etc. This memorandum describes alternative approaches to applying VMT as a CEQA transportation metric because the most appropriate method, metric, screening approach, threshold, and mitigation varies depending on the land use or type of project. The information presented provides an understanding of how the City of Palo Alto would approach most land use project types including residential, office, and retail land use projects. Metrics The City of Palo Alto may assess projects based on a preferred form of the VMT metric. There are two options for measuring VMT (project-generated VMT and the project’s effect on VMT) and several options for reporting VMT, includes total VMT, partial VMT (such as VMT disaggregated by trip purpose), or VMT as an efficiency metric (such as VMT per resident). There are two primary metrics for measuring VMT of a given project or geographic area: project- generated VMT, or the total amount of travel to and from the project, and the project’s effect on VMT, or the way a project changes travel in a given geographic area (this is also known as “boundary VMT”). A more detailed description of each metric is provided below. Figure 1 illustrates the difference between these two types of VMT. Project-generated VMT measures the amount of all vehicle type travel generated by a project (i.e., number of vehicle trips multiplied by their corresponding trip lengths). This is the VMT metric that is currently calculated for land use projects as a key input to CEQA air quality, GHG, and Key Decisions for Palo Alto SB 743 Implementation April 17, 2020 Page 3 of 17 energy assessments. This VMT metric will be measured to determine transportation impacts for certain land use types such as residential and office uses, as well as provide inputs to a project’s air quality, GHG, and energy assessments. Project’s effect on VMT is measured by comparing all VMT on roadways within a selected area or boundary for scenarios without and with a project or plan. It is forecast using a travel demand model and provides a more complete evaluation of the potential effects of certain land use projects or an area plan because it captures the combined effect of new VMT, shifting of existing VMT to/from other neighborhoods, and/or shifting of existing VMT to alternate travel routes or modes. Project effect on VMT would be evaluated for retail uses and large development projects that would result in a significant change in the city’s jobs-housing balance. It would be evaluated to measure potential VMT impacts for transportation projects that add roadway capacity. It is also the approach that would be used where a cumulative analysis of VMT is required, likely for office or regional-serving commercial uses. This metric the effect a project would have on the way all people travel in a selected area (i.e., either a citywide, countywide, or regional scale). It can also provide an indication of whether there would be a net increase or net decrease in VMT if a land use project was built in a different location. There are also several ways to report VMT. New land use projects accommodate population and employment growth; this growth generates new VMT (e.g., a new office building resulting from a land use rezone will generate new vehicle trips and VMT). Whether a project contributes to a more efficient land use pattern (i.e., one that requires less vehicle travel compared to similar land uses) can be determined by using a VMT efficiency metric. Efficiency metrics express this total increase in VMT relative to the increase in residents and employees (VMT per resident, or VMT per worker). Total project-generated VMT as a stand-alone metric tends to be more relevant as an input to air quality, GHG, and energy consumption impact analysis. Total VMT is a metric that would be estimated for retail and potentially large mixed-use projects, land use plans (i.e., Comprehensive Plan, Specific Plans, etc.), and transportation projects that require a quantitative VMT assessment and have the potential to influence vehicle travel associated with neighboring land uses and/or displace other existing trips within the region. Partial VMT is a metric that involves combining only a subset of the VMT generated by vehicle trips, vehicle types, land uses, and/or trip purposes associated with a land development project. Examples include accounting only for light-duty vehicles (as recommended by OPR for residential and office uses), only for trips made between home and work (as recommended by OPR for office uses), or only for trips associated with a dominant land use type for a mixed-use project. Measuring Vehicle Miles Traveled (VMT) Figure 1 Project Limits/Jurisdiction Limits Notes: External to External (XX) trips are excluded from this VMT metric. Adjustments to project generated VMT made to include the full length of trips that leave the jurisdiction to capture inter-jurisdiction travel. 1 2 3 Project Generated VMT 4 Project Effect on VMT (Boundary VMT) Notes: Boundary VMT is all the VMT on the streets within the Project Limits / Jurisdiction Limits. External to Internal (XI) VMT Internal to External (IX) VMT Internal to Internal VMT1 2 3 External to External (XX) VMT4 External to Internal (XI) VMT Internal to External (IX) VMT 2x Internal to Internal (2xII) VMT1 2 3 External to External (XX) VMT4 Project Limits/Jurisdiction Limits 3 1 2 4 Key Decisions for Palo Alto SB 743 Implementation April 17, 2020 Page 5 of 17 VMT efficiency metrics can be further disaggregated into specific types of VMT and populations, such as considering only the VMT generated by residents making trips to and from home. Each of the VMT efficiency metrics listed below addresses a slightly different question in terms of impact analysis. • Home-based VMT per resident reflects how close households are to common destinations, as well as the available transportation options. Because the trip type is specific to local residents, it helps compare residential projects across different locations. However, it omits many different trip types and is considered a “partial” VMT metric. Answers the question: Do people living here drive more or less on average compared to other places? • Home-based work VMT per employee reflects how close a workplace is to places where employees live. Because the trip type is specific to work trips, it helps compare office or other employment projects across different locations. However, it omits many different trip types, and is considered a “partial” VMT metric. Answers the question: Do people working here drive more or less during their commutes compared to workers in other places? • Total project-generated VMT per service population provides a more comprehensive understanding of VMT than the home-based or home-based work partial VMT metrics. By taking the total VMT to and from a project or zone and dividing it by the total number of residents plus the total number of employees, we can compare how VMT intensive the project is as a whole. One caveat for total VMT per service population is that employment-based uses generate more total VMT than non-employment uses, so projects with more employment may have a higher VMT rate by this metric. Further, the VMT associated with employees also includes VMT generated by visitors and customers. Retail and commercial land uses, therefore, generate disproportionately higher levels of VMT per employee. Answers the question: Is this area or project as a whole more or less VMT intensive than other places? For most single-use projects, using one of the partial VMT efficiency metrics (home-based trips per resident, for example) is the simplest way to analyze the VMT generated by a project for screening purposes. This is also the method recommended by the Office of Planning and Research (OPR) in its Technical Advisory.1 If a project is not screened out of VMT impact analysis and thereby determined to result in a less than significant VMT impact, then a complete VMT analysis should be performed. 1 http://opr.ca.gov/docs/20190122-743_Technical_Advisory.pdf Key Decisions for Palo Alto SB 743 Implementation April 17, 2020 Page 6 of 17 Screening OPR recommends a screening process for project types known to be low VMT generators. The City of Palo Alto may choose to screen projects based on one or more of the OPR criteria described in more detail below, requiring only a qualitative discussion in the CEQA document. This screening approach would enable project streamlining by eliminating the need to prepare a quantitative VMT analysis for low VMT-generating projects that meet the screening criteria. This is most appropriate for projects that are consistent with the Comprehensive Plan and/or those that would reduce VMT based on their characteristics. As with all CEQA screening, an impact presumption of less-than-significant should be based on substantial evidence for the project. The OPR Technical Advisory includes suggested methods for screening projects to quickly identify when a project should be expected to cause a less than significant VMT impact without conducting a detailed VMT analysis. The OPR Technical Advisory suggests that lead agencies may screen out VMT impacts for small projects, residential and office projects located in low-VMT areas, projects located in proximity to a major transit stop, affordable housing developments, local-serving retail projects of less than 50,000 square feet, and transportation projects that would not result in an increase to vehicle capacity. Since land use plans affect a larger area and serve as the basis for environmental analysis of future projects, all land use plans (including the Comprehensive Plan, Precise Plans, and Specific Plans) should conduct a quantitative VMT analysis and not utilize screening. Screening for Small Projects The City of Palo Alto may choose to screen projects that generate or attract fewer than 110 trips per day. Based on research for small project triggers, this may equate to nonresidential (e.g., office) projects of 10,000 square feet or less and residential projects of 20 units or less. Screening for Projects Located in Low-VMT Areas The City of Palo Alto may choose to screen residential and office projects located in low-VMT areas that incorporate similar features to the nearby developments (i.e., density, mix of uses, and transit accessibility) on the basis that the project will exhibit similarly low VMT. Screening for Projects in Proximity to a Major Transit Stop The City of Palo Alto may choose to screen projects that are located within a half mile of an existing or planned high-quality transit corridor or major transit station. Proximity to transit is Key Decisions for Palo Alto SB 743 Implementation April 17, 2020 Page 7 of 17 explicitly listed in the CEQA Guidelines as a reason to presume a project has no significant impacts based on VMT. In Palo Alto, this includes the existing Downtown Palo Alto Caltrain station and at stops for bus routes with headways of 15 minutes or less. The OPR Technical Advisory notes that a presumption of less than significant should not be applied, and a VMT analysis should be performed, if the project: • Has a Floor Area Ratio (FAR) of less than 0.75 • Includes more parking than required by the City of Palo Alto • Is inconsistent with Plan Bay Area • Replaces affordable residential units with a smaller number of moderate- or high-income residential units If any of the above conditions apply, a detailed VMT analysis should be conducted to determine whether the project exceeds the VMT thresholds. Screening for Affordable Housing The City of Palo Alto may choose to screen residential projects containing a particular amount of affordable housing (based on local circumstances and substantial evidence as determined by the City) on the basis that affordable housing generates less VMT than market-rate housing. Affordable housing located within infill locations generally improves jobs-housing balance and may thus result in shorter commutes for low-income workers. Screening for Local-Serving Retail The City of Palo Alto may choose to screen local-serving retail projects of less than 50,000 square feet, on the basis that they attract trips that would otherwise travel longer distances. Staff would evaluate both the project characteristics and the context of the project location to make a determination as to whether a given retail project is local serving. Regional-serving retail projects would not be subject to screening. Screening for Transportation Projects The City of Palo Alto may choose to screen transit projects, bicycle and pedestrian projects, and roadway projects that do not result in an increase in vehicle capacity or VMT. Key Decisions for Palo Alto SB 743 Implementation April 17, 2020 Page 8 of 17 Methods The City of Palo Alto has discretion to select its preferred method for calculating VMT. The method used for setting VMT impact thresholds must be the same method used for project impact analysis. CEQA requires environmental analyses to reflect a “good faith effort at full disclosure.” Lead agencies should not truncate any VMT analysis because of jurisdictional or other boundaries, for example, by failing to count the portion of a trip that falls outside the jurisdiction or by discounting the VMT from a trip that crosses a jurisdictional boundary. Thus, where methodologies exist that can estimate the full extent of vehicle travel from a project, CEQA specifies that a lead agency should apply them to do so. The following describes both a screening methodology and a quantitative VMT evaluation method. • To identify projects that could be screened from a quantitative VMT analysis, the Santa Clara Valley Transportation Authority (VTA) is leading the development of a web-based countywide Santa Clara Countywide VMT Estimation Tool. This tool will provide the basis for identifying land uses in Palo Alto that are low VMT generators and/or would be located in a transit priority area and could thus be screened out from preparing a quantitative VMT analysis. For projects that are screened out, the City would provide a qualitative discussion of the project characteristics that form the basis for determining that the project is presumed to have a less than significant VMT impact. The VTA’s estimation tool is an effort to streamline the process by determining whether a project is likely to result in significant VMT impacts. It is anticipated to be complete and available for use by July 1, 2020. • For larger or more unique land development projects that are not screened out, a travel demand model of regional scope should be used to develop quantitative VMT forecasts because it allows for a more complete accounting of all vehicle trips and trip lengths, and can produce estimates for the project’s cumulative impacts on VMT that account for changes in behavior. These models can also account for the potential induced travel effects of a project on VMT. For Palo Alto, this would mean using either the Santa Clara Valley Transportation Authority (VTA) or Metropolitan Transportation Commission (MTC) travel models. The VTA model has a substantially more refined transportation network in the City of Palo Alto than the MTC model does and would therefore be a preferred tool for most projects. Key Decisions for Palo Alto SB 743 Implementation April 17, 2020 Page 9 of 17 The VTA travel model may be used to calculate the VMT metrics described above if the project is large enough for the model to be sensitive to changes in land use.2 Ideally, this would consist of calculating total project-generated VMT, total Citywide or County VMT, and VMT per employee/resident/service population for model scenarios with and without the project. Impacts could be assessed based on both efficiency metrics (e.g., home- based VMT per resident) as well as the project’s effect on VMT (the total change between no project and plus project scenarios). Because Palo Alto is located near the edge of the model boundaries, VMT reported by the model should be adjusted to account for VMT that extends beyond the model limits (e.g., from Palo Alto to San Rafael, which is outside the VTA boundary). These adjustments should include adding an average trip length for vehicle trips leaving the model area based on data from the California State Travel Demand Model, the California Household Travel Survey, mobile devices, or the US Census Bureau. Mixed-use projects should be analyzed using the VTA travel model to assess the project’s effect on VMT and report home-based VMT per resident and home-based work VMT per employee for residential and office components, respectively. Home-based VMT per resident may also be useful for other uses with similar travel characteristics, such as hotels or group quarters. Home-based work VMT per employee may be useful for other uses similar to employment, such as schools, universities, etc. Some land use components (retail, restaurant, entertainment) may be assessed qualitatively if they serve primarily local trips. Particularly for retail uses, a qualitative discussion of how the uses would primarily serve local trips may be adequate to determine the project’s effect on VMT. Otherwise, based on guidance in the OPR Technical Advisory, retail projects should be assessed based on the project’s effect on VMT. Some projects may not be large enough for the VTA travel model to be sensitive to the changes they represent, but too large to qualify for small project screening. In these cases, spreadsheet- based methods based on a VMT generation rate for the project’s TAZ may be useful. This method works well when the proposed project is similar to the types of land uses already present in the TAZ (for instance, adding a new multi-family development to a residential zone). If the project is 2 Model calibration and sensitivity testing should occur as part of any analysis involving travel demand model runs. Key Decisions for Palo Alto SB 743 Implementation April 17, 2020 Page 10 of 17 small, and somewhat unique for the area in which it is proposed, additional data may need to be collected. Other alternatives for assessing the VMT effects of smaller projects are to further validate a sub- area travel model (which requires additional time and effort for analysis and may be expensive), or to use a sketch planning tool such as CalEEMod or MXD+ that have been modified to reflect trip generation rates and trip lengths consistent with the VTA travel model used to set thresholds. The determination of whether a project requires a qualitative, sketch-level, or model-level assessment will need to be made during the environmental scoping process. Thresholds OPR’s technical advisory document recommends thresholds that vary by project and land use type. The thresholds are generally based on applying Total VMT or VMT efficiency metrics. The City of Palo Alto has discretion to set its own VMT impact thresholds for land use and transportation projects. A key question that must be addressed as part of choosing this threshold is whether the City’s expectations for VMT reduction align with state goals. State goals are tied directly to greenhouse gas (GHG) reduction goals, which may or may not be shared with the City. Since thresholds must be supported by substantial evidence, the City will need to carefully review state guidance from OPR and CARB about VMT thresholds before making a determination. Further, the Caltrans endorsement of the OPR thresholds is likely to establish the expectation that a state threshold has been set for land use projects that add VMT to the state highway system. The CEQA Guidelines encourage local jurisdictions to adopt significance thresholds intended for general use by resolution or ordinance as part of a public process. Lead agencies also have the option to establish thresholds on a project-by-project basis. The City of Palo Alto will need to identify VMT impact thresholds for land use projects, land use plans, and transportation projects. Adopting these thresholds through a public process improves transparency and can be used to help educate the public and project applicants about the City’s expectations. VMT goals that the City sets should be consistent with other adopted plans. Adopting a VMT threshold is a discretionary action and should be consistent with the Comprehensive Plan in particular. VMT reduction is often a part of policies related to reducing air quality impacts, reducing greenhouse gas emissions, or improving energy efficiency. The City should also reconcile how its adopted VMT threshold would contribute to state goals for GHG reduction and discuss how it is helping to meet these goals. Key Decisions for Palo Alto SB 743 Implementation April 17, 2020 Page 11 of 17 Any CEQA impact threshold should be supported by substantial evidence, which in turn should consist of facts, reasonable assumptions based on facts, and expert opinions supported by facts. The discussion below focuses on the relative substantial evidence available for various threshold options the City may consider. Regardless of the specific threshold the City selects, Palo Alto will still need to consider other substantial evidence related to VMT impacts when analyzing specific projects and making determinations of VMT impact significance.3 Thresholds – Land Use Projects and Plans The state’s guidance on thresholds is presented in the OPR Technical Advisory and the CARB California Air Resources Board 2017 Scoping Plan – Identified VMT Reductions and Relationship to State Climate Goals. The OPR threshold generally requires land use projects to achieve a VMT reduction of 15 percent below the city or regional (e.g., Bay Area or Santa Clara County) baseline average depending on the type of land use. The CARB analysis indicates that this threshold would need to be 16.8 percent for automobile only VMT to achieve state GHG reduction goals. For residential and office projects, OPR indicates that a “per capita or per employee VMT that is 15 percent below that of existing development may be a reasonable threshold.” The recommended OPR thresholds are based on substantial evidence that aligns CEQA transportation analysis to meet statewide targets for GHG emission reductions. This overarching goal is consistent with the City’s Comprehensive Plan 2030. The Comp Plan includes several goals and policies that strive to reduce GHG emissions and air quality impacts, reduce single-occupancy vehicle use, and encourage multi-modal transportation. The City’s current S/CAP has GHG emission reduction goals that are more aggressive than state goals. The 15 percent VMT reduction target may need to be refined to reflect GHG emission reduction goals in the updated S/CAP scheduled for adoption in 2021. In order to align the City with current state VMT reduction targets by July 1, 2020, the City may adopt an initial set of VMT thresholds that are consistent with OPR’s recommendations and update those thresholds later as needed. For individual land use projects that are not screened out and require a quantitative VMT assessment, this would mean the following: 3 One example of this evidence may be the SB 150 report provided by the California Air Resources Board (CARB), which provides evidence that statewide VMT per capita is increasing rather than decreasing. https://ww2.arb.ca.gov/sites/default/files/2018-11/Final2018Report_SB150_112618_02_Report.pdf Key Decisions for Palo Alto SB 743 Implementation April 17, 2020 Page 12 of 17 • Residential projects – A proposed project exceeding a level of 15 percent below existing (baseline) home-based VMT per resident would indicate a significant transportation impact. • Office projects – A proposed project exceeding a level of 15 percent below existing (baseline) regional home-based work VMT per employee would indicate a significant transportation impact. • Retail projects – A net increase in total VMT would indicate a significant transportation impact. This metric reflects the nature of most local-serving retail to distribute existing vehicle trips, rather than generate or induce new vehicle trips. • Mixed-use projects – The City will apply one of the above residential, office, or retail thresholds for mixed-use projects with a dominant use. If there is more than one primary land use type, each of the primary land uses would be evaluated independently by applying the relevant threshold above. • Other project types – The City will either develop an Ad Hoc (i.e., project-specific) VMT threshold for a unique land use type or apply the most applicable of the above thresholds depending on project characteristics. • Redevelopment projects – Where a project replaces existing VMT-generating land uses, if the replacement leads to a net overall decrease in VMT, the project would cause a less than significant VMT impact. If the redevelopment project leads to a net overall increase in VMT, it would cause a significant VMT impact. When applying the above thresholds, project’s VMT is compared to a baseline VMT value that is typically either a citywide or regional average for a land use type. The baseline VMT represents existing conditions and estimated changes over time. The values presented below are for current conditions. As VMT assessments are conducted over the coming years, the VMT Baseline values will be updated. The 15 percent reductions specified in the Technical Advisory are based on light-duty vehicle project generated VMT (i.e., passenger cars and light trucks). They were also included before completion of CARB modeling of MPO regional transportation plan/sustainable communities strategies (RTP/SCSs). The CARB Scoping Plan and Mobile Source Strategy identifies that a 14.3 percent reduction in total VMT or a 16.8-percent reduction in light-duty vehicle VMT per capita from 2018 baseline levels is necessary to meet state GHG reduction goals by 2050. These reduction values are based on a fair share estimate of new development’s responsibility for VMT reduction and presume that all 2050 California residents will be performing at the reduced VMT Key Decisions for Palo Alto SB 743 Implementation April 17, 2020 Page 13 of 17 levels. If existing residents (those present in 2018) do not change their travel behavior and the full reduction in VMT was allocated to new growth, then the reduction goal would be much higher. Further, if VMT per capita trends continue to increase as noted in the 2018 Progress Report California’s Sustainable Communities and Climate Protection Act, California Air Resources Board, November 2018, then these reduction percentage values will have to increase. Also, the recommendation above for mixed-use projects to rely on the ”dominant use” in VMT analysis may present new challenges. The term ”dominant use” is not defined in the CEQA statute or CEQA Guidelines. One other agency threshold to consider is Caltrans. The Local Development-Intergovernmental Review (LD-IGR) Branch at Caltrans (https://dot.ca.gov/programs/transportation-planning/office- of-smart-mobility-climate-change/local-development-intergovernmental-review) has responsibility to reduce potential adverse impacts of local development on the state transportation system. As part of its responsibilities, each district branch performs reviews of CEQA environmental documents for local land use projects. These reviews include providing expectations for transportation impact analysis such as metrics and thresholds. Caltrans released a VMT-Focused Transportation Impact Study Guide (February 28, 2020) that recommends use of the OPR thresholds for land use projects and plans. This guidance did not specify whether to use the 15.0 or 16.8 percent threshold value (both values are included in the OPR Technical Advisory). The Caltrans Guide also mentions that Caltrans may request additional analysis for transportation projects; standards for those projects are discussed in the section below. Setting a threshold lower than the 15-percent reduction recommended by OPR in their Technical Advisory is likely legally defensible, so long as the threshold is supported by substantial evidence. The substantial evidence is critical in the threshold setting process and should explain why the OPR-recommended threshold is not appropriate for the lead agency or project, and why another threshold was selected. This evidence will be the basis for supporting the recommended threshold and should carefully consider the definition of substantial evidence contained Section 15384 of the CEQA Guidelines. Additionally, while this approach would likely result in a more modest (and therefore more feasible) VMT reduction target, feasibility of mitigating an impact is not sufficient justification for setting an impact threshold. Setting a threshold higher than the 15-percent reduction recommended by OPR would be consistent with forecasts in the CARB SB 150 report, which includes evidence that VMT per capita is increasing and, as a result, so are GHG per capita emissions. The thresholds published by CARB Key Decisions for Palo Alto SB 743 Implementation April 17, 2020 Page 14 of 17 and OPR are based on a number of assumptions about future outcomes related to VMT generation of current residents, fuels, electric vehicles, that may not qualify as reasonably foreseeable under CEQA and do not consider the influence of transportation network companies (e.g., Uber and Lyft) and autonomous vehicles (AV) on travel behavior. These sorts of travel trends, if they continue, may contribute to ‘other substantial evidence’ that higher VMT reduction levels must be considered and discussed when making a significance finding. Each of the thresholds above uses a nexus between VMT and GHG to establish substantial evidence. However, future court decisions may indicate that VMT as a metric may be more analogous to prior LOS analysis (i.e., allowing communities to determine what level of VMT change would result in effects that the community finds to be significant, including effects such as increased traffic and noise). If VMT thresholds are treated more like LOS thresholds, then lead agencies would have a similar level of discretion to establish thresholds based on context (i.e., sensitivity to the amount of vehicle travel). Past practice allowed lead agencies to set LOS thresholds based largely on the local community’s sensitivity to travel delay. For example, rural areas that were more sensitive were allowed to establish LOS thresholds that equated to lower levels of delay. Using this analogy, a lead agency could set VMT thresholds based on a community’s sensitivity to the amount of vehicle travel or its associated effects. Thresholds – Transportation Projects OPR and Caltrans recommend that a net increase in total VMT may indicate a significant impact for transportation projects. A net decrease or no change in VMT would be evidence of a less than significant VMT impact. Projects that reduce or have no impact on VMT include most active transportation projects, road diets, and minor operational changes to local roadways. However, capacity increases (i.e., lane additions) on arterial roadways or roadways that carry regional traffic have the potential to induce new vehicle traffic, and therefore new VMT. As an example, adding an additional lane on an arterial roadway that reduces delay, may make driving even more competitive than walking, and shift some trips from walking to driving. The no net new VMT threshold is the threshold preferred by Caltrans for assessment of impacts to Caltrans facilities and recommended in the OPR Technical Advisory. As a threshold, it is also reflective of whether a project simply improves operations for existing users (decreasing delay or improving safety with no change in VMT) or if it also results induces demand for driving. Key Decisions for Palo Alto SB 743 Implementation April 17, 2020 Page 15 of 17 Mitigation Trip reduction measures or changes in project land use mix or density are two of the most common strategies for reducing significant VMT impacts at the project site. Longer-term options include program-based approaches such as adopting VMT impact fees, developing a mitigation exchange, or using a mitigation bank. Program-based approaches rely on VMT reduction as the essential nexus and offer the ability to mitigate off-site. Use of transportation demand management (TDM) strategies for mitigation requires monitoring because effectiveness depends on building tenant performance. The primary methods of mitigating a VMT impact are to either change the project or implement a program designed to reduce VMT, such as a TDM program. VTA has identified the following four VMT mitigation categories. • Change the project land use mix or density • Reduce proposed vehicle parking supply levels • Implement on-site or off-site capital improvements for transit, bicycle, or pedestrian travel • Implement trip reduction programs as described in a Transportation Demand Management (TDM) program Project changes may include incorporating a mix of land uses or increasing a project’s density. Reduced vehicle parking supply, often in combination with providing increased bicycle parking, can have a substantial effect on reducing vehicle travel or VMT. TDM measures include telecommuting, transit subsidies and/or shuttles, parking strategies to discourage automobile trips (e.g., unbundled parking, paid parking, etc.), promotional programs and incentives (e.g., hosting Bike to Work day or providing transit vouchers), subsidies for commuters using transit or carpooling, and facilities for bicyclists and pedestrians. The TDM programs may be implemented on a project-by-project basis or through a coordinated citywide or countywide program, potentially funded by a future VMT impact fee. The effectiveness of TDM programs varies widely based on many factors, including participant travel behavior and preferences, the level of investment, project location, and the quality of the multimodal transportation infrastructure. Because of this variation, mitigating a VMT impact using TDM requires a rigorous ongoing monitoring program that measures VMT performance over time until sufficient evidence exists that the VMT reduction goal has been achieved and will be Key Decisions for Palo Alto SB 743 Implementation April 17, 2020 Page 16 of 17 maintained. This monitoring effort would require additional city staff or project applicant resources and may result in an increased number of projects that have VMT impacts that remain significant and unavoidable even after feasible mitigation. Considerations for Comprehensive Plan Goals and Policies Retaining LOS and Other Metrics The City of Palo Alto may set operational metrics such as delay and LOS as standards in its Circulation Element. Future projects would then be required to conduct traffic studies as part of the entitlement process. The City of Palo Alto can continue to use vehicle LOS outside of the CEQA process if the City determines it is an important part of the transportation analysis process. For instance, the City may wish to set roadway operating standards based on LOS in the Comprehensive Plan or use LOS to determine a nexus for a transportation impact fee program. Although the City of Palo Alto can also continue to condition projects to build transportation improvements through the entitlement process in a variety of ways, projects that increase roadway capacity would likely be required to conduct a detailed CEQA VMT analysis to measure induced vehicle travel. Land Use Planning / EIR Tiering A Comprehensive Plan update can be used to address desired development on parcels outside a screening area, through analyzing the VMT impacts as part of the Comprehensive Plan EIR. While SB 743 presents new standards for transportation impact assessment, the option to “tier” CEQA analysis from previous environmental review will remain. The tiering process consists of streamlining topics studied for a project if that project was assessed under a previous EIR, such as a single parcel that is consistent with a previously analyzed Specific Plan. In this case, the project would only need to analyze those items which were not previously analyzed. Therefore, if the Specific Plan analyzed VMT in the EIR, then the project may not be required to conduct a detailed VMT analysis. In the near term, this may require investment in plan-area VMT analysis, however it would streamline future projects consistent with an environmentally cleared Comprehensive Plan or Specific Plan that analyzed VMT. Should the City expect a future Comprehensive Plan to cause a VMT impact, the CEQA review process can be streamlined by reviewing and mitigating projects in the Comprehensive Plan at a citywide level. An updated Comprehensive Plan with a certified EIR identifying the potential VMT Key Decisions for Palo Alto SB 743 Implementation April 17, 2020 Page 17 of 17 impacts can serve as a starting point for tiered future analysis, and potentially include a framework for developers to contribute to an impact fee program based on VMT reduction as the essential nexus. Mitigation Programs Including improvement measures and plans/programs that reduce VMT in the Comprehensive Plan Circulation Element can help establish a nexus for off-site mitigation. To compensate for limitation of on-site project mitigation, the City can develop off-site mitigation programs as noted above, these types of programs are strengthened when the Comprehensive Plan Circulation Element includes VMT reduction policies and recommends a specific program type considering the other objectives of the Comprehensive Plan. The policies need to consider whether support exists in the community to mitigate in areas not adjacent to the project where the direct impact of new development will be felt the most. Implications for Future CEQA Transportation Analysis Once Palo Alto has implemented SB 743 and prepared the needed technical methods, CEQA transportation analyses for small to medium size projects in Palo Alto would likely require be substantially reduced in scope and schedule, allowing for a streamlined approach. Emphasis would be on discussion of transit, bicycle and pedestrian, and safety concerns rather than vehicular delay. For projects that are unable to be screened from a quantitative VMT assessment, there would be an additional analysis cost; however, this would likely remain somewhat less than the cost for assessing LOS impacts. LOS analysis would not be included in the transportation analysis for CEQA but may be performed independently and used to inform conditions of approval for projects. The City would determine what level of LOS analysis is appropriate, as well as how to assess deficiencies in roadway operations. These criteria will be set in the Circulation Element of the Comprehensive Plan. Critically, this moves the LOS analysis process into the administrative and planning realm; while findings will still be presented to help decision-makers make an informed decision, the potential for litigation based on CEQA adequacy of LOS analysis is removed. ATTACHMENT B Santa Clara Countywide VMT Estimation Tool The Santa Clara Countywide VMT Estimation Tool (SCC VMT Estimation Tool) will screen projects that are exempt from further VMT analysis using project generated VMT thresholds and transportation priority areas, estimate the project generated VMT rate, and estimate VMT reductions for land use projects in Santa Clara County. The types of land use projects addressed include residential, office, and industrial land uses, those land uses in combination with each other, and those land uses with or without local serving retail space. The SCC VMT Estimation Tool will be modular such that Santa Clara Valley Transportation Authority (VTA), along with cities in Santa Clara County and the County of Santa Clara, can include specific VMT screening criteria or model data within the Tool. The Tool will be scalable such that it can be used for a range of project sizes and location within any jurisdiction in Santa Clara County. The SCC VMT Estimation tool evaluates the VMT for proposed land use projects by determining whether the project is located within a low VMT generating area, estimating the project generated VMT, and evaluating the project generated VMT after potential reduction measures have been applied. The travel forecasting data that the SCC VMT Estimation Tool uses is static, meaning that any data in this tool does not affect the data used from the source travel forecasting model. The SCC VMT Estimation Tool consists of three separate modules: ▪ VMT Screening – The location of the project is used to determine if the project site is within a low VMT generating area, including low VMT generating traffic analysis zones (TAZ) or parcels and transit priority areas (TPA). ▪ Project Generated VMT – A combination of the project’s location and project details is used to estimate VMT generated from the project, which is expressed as a VMT rate (i.e., VMT per population generating the VMT). This process can use the Santa Clara Valley Transportation Authority (VTA)’s parcel-level VMT data or TAZ level VMT generation rates to estimate the project’s VMT. ▪ VMT Reductions – A series of VMT mitigation measures are applied to potentially reduce the project generated VMT. The project VMT is compared to the applicable VMT threshold to determine whether it falls below the threshold at the start, or whether it is reduced below the threshold after applying additional VMT reduction measures. The VMT threshold used in this module is calculated in the VMT Screening module City of Palo Alto (ID # 11100) City Council Staff Report Report Type: Consent Calendar Meeting Date: 5/18/2020 City of Palo Alto Page 1 Council Priority: Fiscal Sustainability Summary Title: Water, Wastewater, Refuse, and Fiber Rates Statute of Limitations Ordinance Title: Adoption of an Ordinance Amending Title 12 of the Palo Alto Municipal Code to Set a 120-Day Statute of Limitations for Challenges to the City’s Water Service Rates, Wastewater Collection and Disposal Rates, Refuse Rates, Storm Water Management Fees, and Fiber Licensing Service Rates From: City Manager Lead Department: Utilities Recommended Motion Staff recommends that Council adopt the attached Ordinance (Attachment A) amending the Palo Alto Municipal Code to set a 120-day statute of limitations for challenges to the City’s water service rates, wastewater collection and disposal rates, refuse rates, storm water management fees, and fiber licensing service rates. Recommendation Staff recommends that Council adopt the attached Ordinance (Attachment A) amending the Palo Alto Municipal Code to set a 120-day statute of limitations for challenges to the City’s water service rates, wastewater collection and disposal rates, refuse rates, storm water management fees, and fiber licensing service rates. Background In 2000, the California State Legislature enacted a 120-day statute of limitations for challenges to municipal electric rates or charges. This statute applies to electric rate challenges in Palo Alto. Because the Legislature did not enact a similar statute of limitations for challenges to gas rates, on May 20, 2019, Council adopted an Ordinance setting its own statute of limitations for challenges to gas rates. To remain consistent with state and local law, Palo Alto can similarly adopt a statute of limitations for challenges to water, wastewater collection and disposal, refuse, storm water management fees, and fiber licensing rates. The public policy underlying this 120-day statute of limitations is to ensure that local agencies will be promptly informed of any challenges to their ability to collect fees and spend the revenues thereby generated. To City of Palo Alto Page 2 promote this public policy, Palo Alto can enact its own statute of limitations for rate challenges. Discussion Public Utilities Code Section 10004.5 sets a 120-day statute of limitations for challenges to municipal electric rates or charges. Challenges to water and sewer capacity and connection fees, development impact fees, and certain building and zoning fees must also be brought within 120 days, under Government Code Section 66022. Because the Legislature did not enact a similar statute of limitations for challenges to gas rates or charges, on May 20, 2019, Council adopted an Ordinance setting its own statute of limitations for challenges to gas rates. Adopting a similar statute of limitations for challenges to water service rates, wastewater collection and disposal rates, refuse rates, storm water management fees, and fiber licensing service rates aims to balance the interests of the City with the interests of the City’s utility customers, by allowing customers to bring challenges within a reasonable, but limited, period of time. Without a statute of limitations, customers may seek a refund years after a charge has been collected, making it difficult for the City of Palo Alto Utilities and Public Works Departments to maintain the stable budget necessary to operate effectively, while keeping rates as low as possible. By establishing a reasonable period of time beyond which the City will not face exposure to challenges to the validity of water service rates, wastewater collection and disposal rates, refuse rates, storm water management fees, and fiber licensing service rates, a statute of limitations minimizes the fiscal uncertainty that results when there is no clearly established closure on such challenges, and provides clear guidance to customers considering a challenge. These are the same public policy concerns which underlie the state statutes applicable to electric rates and the capacity, connection, and development fees described above. Policy Implications The proposed Ordinance is consistent with the City’s policy of fiscal sustainability. Resource Impact The approval of the Ordinance as recommended would allow Customers to bring challenges to water service rates, wastewater collection and disposal rates, refuse rates, storm water management fees, and fiber licensing service rates within 120 days after the effective date of the applicable rates. Adoption of this statute of limitations will facilitate stable budgeting and planning necessary to operate effectively and keep rates as low as possible. Environmental Review The Council finds that the adoption of this Ordinance setting a statute of limitations for challenges to water service rates, wastewater collection and disposal rates, refuse rates, storm water management fees, and fiber licensing service rates does not meet the definition of a project under Public Resources Code section 21065, and therefore California Environmental Quality Act (“CEQA”) review is not required. Attachments: City of Palo Alto Page 3 • Attachment A: ORDINANCE Water, Wastewater, Refuse, and Fiber Rates Statute of Limitations *Yet To Be Passed* 6055264 Ordinance No._____ Ordinance of the Council of the City of Palo Alto Amending Section 12.20.030 (Statute of Limitations for Challenges to Gas Rates) of Chapter 12.20 (Utility Rules and Regulations) of the Palo Alto Municipal Code to Set a 120-Day Statute of Limitations for Challenges to Water Service Rates, Wastewater Collection and Disposal Rates, Refuse Rates, Storm Water Management Fees, and Fiber Licensing Service Rates The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A. A statute of limitations for challenges to water service rates, wastewater collection and disposal rates, refuse rates, storm water management fees, and fiber licensing service rates aims to balance the interests of the City of Palo Alto (“City”) with the interests of City of Palo Alto Utilities Customers (“Customers”), by allowing Customers to bring challenges within a reasonable, but limited, period of time. B. Without a statute of limitations, Customers may argue that they are able to request a refund years after a charge has been collected, making it difficult for the City of Palo Alto Utilities and Public Works Departments to maintain the stable budget necessary to operate effectively, while keeping rates as low as possible. C. By establishing a reasonable period of time beyond which the City will not face exposure to challenges to the validity of water service rates, wastewater collection and disposal rates, refuse rates, storm water management fees, and fiber licensing service rates, a statute of limitations minimizes the fiscal uncertainty that results when there is no clearly established closure on such challenges, and provides clear guidance to customers considering a challenge. D. The California State Legislature enacted a similar 120-day statute of limitations for challenges to electric rates or charges in 2000, which is codified in Public Utilities Code Section 10004.5. This rule applies to electric rate challenges in Palo Alto. E. Because the Legislature did not enact a similar statute of limitations for challenges to gas rates or charges, on May 20, 2019, Council adopted an ordinance enacting its own statute of limitations for challenges to gas rates or charges. F. It is incumbent upon the City of Palo Alto to similarly enact its own statute of limitations for challenges to water service rates, wastewater collection and disposal rates, refuse rates, storm water management fees, and fiber licensing service rates, which reflects the same public policy concerns underlying Public Utilities Code Section 10004.5. *Yet To Be Passed* 6055264 SECTION 2. Section 12.20.030 (Statute of Limitations for Challenges to Gas Rates) of Chapter 12.20 (Utility Rules and Regulations) is hereby amended to read as follows (amendments underlined): 12.20.030 Statute of Limitations for Challenges to Gas Rates, Water Service Rates, Wastewater Collection and Disposal Rates, Refuse Rates, Storm Water Management Fees and Fiber Licensing Service Rates. Any judicial action or proceeding against the City, to attack, review, set aside, void, or annul an ordinance, resolution, or motion fixing or changing a rate or charge for: a) a gas commodity or a gas service furnished by city and adopted on or after June 1, 2019, or b) for water services, wastewater collection and disposal, refuse, storm water management, or fiber licensing services furnished by city and adopted on or after June 1, 2020 shall be commenced within 120 days of the effective date of that ordinance, resolution, or motion. SECTION 3. If any section, subsection, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the ordinance. The Council hereby declares that it should have adopted the ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. SECTION 4. The Council finds that the adoption of this ordinance setting a statute of limitations for challenges to water service rates, wastewater collection and disposal rates, refuse rates, storm water management fees, and fiber licensing service rates does not meet the definition of a project under Public Resources Code section 21065, therefore California Environmental Quality Act (“CEQA”) review is not required. // // // // // // // // *Yet To Be Passed* 6055264 // SECTION 5. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Assistant City Attorney City Manager Director of Utilities 1 of 1 TO: HONORABLE CITY COUNCIL FROM: DEAN BATCHELOR, DIRECTOR OF UTILITIES DATE: MAY 18, 2020 SUBJECT: AGENDA ITEM NUMBER 3- Approval and Authorization for the City Manager or Designee to Execute a Professional Services Agreement With Magellan Advisors, LLC, in a Not-to-Exceed Amount of $214,236 for Phase 1 of the Fiber Network Expansion Plan The item has been pulled in order to allow Staff time to re-negotiate pricing. _______________________ _______________________ Dean Batchelor Ed Shikada Director of Utilities Department City Manager 3 1 of 1 TO: HONORABLE CITY COUNCIL FROM: DEAN BATCHELOR, DIRECTOR OF UTILITIES DATE: MAY 18, 2020 SUBJECT: AGENDA ITEM NUMBER 4- Approval and Authorization for the City Manager or Designee to Execute the Following Marketing and Graphics Contracts in a Combined Not to-Exceed Amount of $290,000 Annually and a Combined Not-to-Exceed Amount of $1,450,000 Over a Five-year Term: A) Eric Goldsberry Art Direction, C20176172A; B) Marketing for Change, C20176172B; and C) Underground Advertising, C20176172C; Finding of CEQA Exemption The item has been pulled in order to allow Staff time to re-negotiate pricing. _______________________ _______________________ Dean Batchelor Ed Shikada Director of Utilities Department City Manager 4 City of Palo Alto (ID # 11246) City Council Staff Report Report Type: Consent Calendar Meeting Date: 5/18/2020 City of Palo Alto Page 1 Summary Title: 2353 Webster Street: Appeal of Director's Decision on Individual Review Application Title: QUASI-JUDICIAL. 2353 Webster Street [18PLN-00339]: Appeal of Director’s Approval of an Individual Review Application to Demolish an Existing One-Story 1,593 Sq Ft Home and Construct a Two-Story Home ( Approx. 3,133 Sq Ft) with a Basement and an Attached Garage; Approved by the Director of Planning & Development Services on March 17, 2020. Zoning District: Single-Family Residential (R-1) From: City Manager Lead Department: Planning and Development Services Recommendation Staff recommends City Council decline to hear the appeal and uphold the Planning and Development Services Director’s approval of the Individual Review (IR) application (file 18PLN- 00339). The project is a new two-story home at 2353 Webster Street. Executive Summary This request is an appeal of the Director’s approval of a Single-Family Individual Review (IR) application for a new two-story home. Three or more Council Members’ votes would be needed to remove this item off the consent calendar and to set the matter for a future hearing. Appellants Jack Morton and Mary Ellen White are the owners of 2343 Webster Street, a single- story home abutting the subject property. As required by the Palo Alto Municipal Code, staff mailed all decision and hearing notices regarding the project to the immediate neighbors, including the appellant. Following the Director’s Hearing on February 27, 2020, the Director upheld the tentative approval. The appellant is concerned about the 300-year-old oak tree in the proposed home’s rear yard, dewatering to construct the basement, and the size of the proposed house. City of Palo Alto Page 2 Background Individual Review applications are reviewed and approved through the Low-Density Residential Review Process set forth in Palo Alto Municipal Code (PAMC) 18.77.075. First, a project receives a staff-level ‘proposed Director’s decision’; a tentative staff decision subject to a hearing request process. Any adjacent property owner or occupant may request a Director’s Hearing within 14 days of the decision. If requested, the Director then sets and conducts a noticed public hearing on the project, receives testimony, and makes a decision that becomes final 14 days thereafter. Following this approval, and within the 14-day appeal period, owners or occupants of abutting properties may appeal the decision to Council. Appeals are placed on the Council consent calendar for final action. The Council has two options. The first option is for Council to approve the item on consent, adopting the findings and affirming the Director’s decision. The second option, if three or more Council members vote to remove the project from the consent, is for Council to set an appeal hearing. This appeal hearing would be scheduled as soon as practical, and neighbors would be notified in accordance with Palo Alto Municipal Code (PAMC) Section 18.77.075. Project Review and Director’s Approval The Individual Review program applies to the construction of new two-story homes and second story additions. The program is intended to mitigate the effects of the additions on neighboring single-family homes (per PAMC Section 18.12.110(a)). Development applications subject to the IR regulations must be consistent with the IR guidelines (per PAMC Section 18.12.110(d)). The IR guidelines include criteria related to (1) basic site planning, (2) neighborhood compatibility for height, mass and scale, (3) resolution of architectural form, massing and roof lines, (4) visual character of street facing facades and entries, and (5) placement of second-story windows and decks for privacy. The subject IR application was originally submitted on October 4, 2018 and received comments from the Planning, Public Works Engineering, and Urban Forestry departments, in addition to IR Guideline Review by the City’s consulting architect. The appellant and other neighbors initially provided comments on October 21, 2018 and these comments were incorporated into the review. Initial Revisions The applicant submitted revised plans on June 6, 2019 to address comments prepared by staff on November 1, 2018. The following are comments related to neighbor concerns and how they were addressed in the resubmitted plans, which staff then tentatively approved: City of Palo Alto Page 3 Concern Response Side facing windows and wrap-around balcony would create a privacy issue for side neighbors Initial plans did not meet IR Guideline #5. Approved design has only one second floor side-facing window, located in the stairway 6’8” above the landing. Balcony is limited to the rear only, with a 5’8” privacy wall to prevent views to near side, over 50 feet away from the opposite site (acceptable to neighbors). Basement construction could harm 300-year old Oak tree on the subject property Urban Forestry staff requested an Arborist Report. The owner hired Davey Tree Expert Company to prepare the report and act as project Arborist. Urban Forestry staff reviewed the report and requested edits as necessary to ensure appropriate tree protection. Additional Revisions: The applicant further refined the design and arborist report for additional reviews. These revisions, submitted on August 26, 2019 and November 20, 2019, were tentatively approved on December 5, 2019. On December 19, 2019, the appellant made a timely request for a Director’s Hearing. Staff held an additional meeting with the appellant and other interested neighbors on January 14, 2020 to better understand the neighbor’s concerns, which were not fully presented in the request letter. Director’s Hearing February 27, 2020 During the hearing, the appellants reiterated the concerns they previously expressed to staff. They stated that (1) they believed the house was too large for typical single-family use, (2) the 300-year-old Oak tree was not appropriately protected, and (3) dewatering for the basement could damage the tree and/or neighboring properties. The project complies or has been conditioned to comply with applicable dewatering regulations. These regulations were updated in 2017 and 2018 in response to residents’ concerns. The concerns were that temporary construction-related groundwater dewatering wasted water, damaged structures, trees and vegetation, and depleted or altered the flow of groundwater. The current dewatering regulations are included as Attachment E. It was also determined during the hearing that additional research was needed to understand if the tentative conditions incorporated all possible measures to protect the tree. Between the hearing and the Director’s decision, Urban Forestry staff corresponded with the project arborist, and made additional recommendations that were incorporated as conditions in the Director’s Decision. City of Palo Alto Page 4 Director’s Approval and Appeal On March 16, 2020, following the Director’s Hearing, the Director approved the application, imposing additional conditions requiring that: • Plans include additional tree protection measures (Conditions #1 a-g, #23-32), including requiring: o 14 feet of the existing foundation nearest the tree to remain – abandoned, not removed; o Demolition of the remaining existing foundation by air spade and/or hand tools only and be performed under the supervision of a Certified Arborist; o Recommendations from the final Arborist Report be included as conditions of approval; o Tree protection fencing installed prior to demolition, where feasible, and no closer than 40 feet from the specimen Valley Oak. o the applicant’s consulting arborist to make daily visits during demolition to the site and prepare a daily memo attesting to the contractor’s compliance with the arborists report and related Urban Forestry conditions of approval (Condition Numbers 27-40) o During demolition and construction, all pervious area within the TPZ shall be covered with 12 inches of woodchips and a layer of plywood, to the satisfaction of Urban Forestry (Condition Numbers 28b and 28c) o The location for the dewatering monitoring well required in Condition Number 43 shall be determined by the Director of Public Works prior to building permit approval to ensure the goals of the monitoring well are balanced with the need to protect the specimen Valley Oak. • Staff will also hold a preconstruction meeting to discuss the construction phase conditions with those who will be onsite during construction (Condition #2). On March 31, 2020, the appellant appealed the Director’s approval of the IR application (Attachment B), based on concerns for the health of the oak tree, even with the additional review by Urban Forestry and new conditions added. Discussion The project meets all five of the guidelines for Individual Review. The project complies with the Public Works regulations for dewatering, and Urban Forestry regulations for protecting the 300- year-old Oak tree. Findings for the project’s compliance with IR guidelines are provided in Attachment F, with analysis provided by the City’s consulting architect and dated October 3, 2019. The letter also includes recommended conditions of approval, which were incorporated as Condition #5e and #13a. The project is expected to meet all requirements for dewatering, in accordance with the standard conditions of approval. City of Palo Alto Page 5 The Director added the conditions to further clarify how to protect the 300-year-old Oak tree. They are provided in Attachment A as Condition of Approval #1, Special Conditions. In total, the project has met the findings for approval, and the project approval is enhanced with the special Director’s conditions to ensure protection of the 300-year-old Oak tree. Therefore, staff recommends upholding the Director’s decision to approve the project. Alternative to Staff Recommendation The Council’s alternative to the staff recommendation, as outlined in PAMC Section 18.77.075(g)(2), is to remove the recommendation from the consent calendar with three votes. The Council could set the application for a public hearing before the City Council, to enable the City Council to hear the item, adopt findings, and take action on the application. If the Council so directs, staff will identify a date for the hearing and will provide appropriate public notice in advance of the hearing. Stakeholder Engagement Notices of the pending application and tentative decision were provided in accordance with the municipal code. Staff has been in regular communication with applicant and appellant. A director’s hearing was held that resulted in additional conditions being imposed on the project. The applicant and appellant have been advised of this item being scheduled on the agenda and opportunities to provide public input. Policy Implications The Director’s decision to approve the application is consistent with staff’s implementation of the Individual Review Guidelines, and with the policies and intent of the Individual Review Process. This is the third appeal of an Individual Review project since 2015. It is, however, the first appeal during the five year time period of a home that is not within an Eichler neighborhood. Also notably absent from the appeal are privacy concerns, which are typically an appeal topic associated with IR applications. Environmental Review This project is exempt from the provision of the California Environmental Quality Act (CEQA) per Section 15303(a) of the CEQA Guidelines. Attachments: Attachment A: Director's Approval Letter Attachment B: Appeal Letter Attachment C: Tentative Approval Letter City of Palo Alto Page 6 Attachment D: Location Map Attachment E: 2020 Regulations for Dewatering during Construction of Below Ground Structures Attachment F: Consulting Architect's Review Letter Attachment G: September 2019 Arborist Report Attachment H: Project Plans March 16, 2020 Yali Zhou 2353 Webster St. Palo Alto, CA 94301 Gordana Pavlović 602 Hawthorne Avenue Palo Alto, CA 94301 Email: design@gordana.net SUBJECT: 2353 Webster Street - Individual Review Application 18PLN-00339 On December 5, 2019, the Director of Planning and Community Environment conditionally approved Single Family Individual Review application 18PLN-00339 for a new two-story residence with a basement at 2353 Webster St. This approval was granted pursuant to the Palo Alto Municipal Code (PAMC) Sections 18.12.110 and 18.77.075. The conditionally approved project plan set received November 20, 2019, meets the Palo Alto Single Family Individual Review Guidelines, and complies with the R-1 zone district regulations and other applicable City regulations for development as conditioned. Prior to the approval becoming effective, a timely request for Director’s Hearing was received and a Director’s Hearing was held on February 27, 2020. On March 16, 2020, the Director of Planning and Community Environment upheld the conditionally approved project. PROJECT DESCRIPTION The proposal is a request by Gordana Pavlović for Single Family Individual Review to allow demolition of an existing single story residence and construction of a new two-story single-family residence with a basement and an attached one-car garage in the R-1 zoning district, as shown on the plans received on November 20, 2019. DIRECTOR’S HEARING The hearing was requested by Jack Morton and Mary Ellen White. Their concerns included the size of the home, protection for the 300-year old Oak tree, and dewatering during basement construction. DECISION AND FINDINGS The Director of Planning and Community Environment finds that the project (as submitted on November 20, 2019 and as conditioned here) is in compliance with both the Municipal Code and the Individual Review Design Guidelines. The Director finds: DocuSign Envelope ID: 5F69F71E-F7A2-4BBE-A368-09596D6D50FD 2353 Webster Street 18PLN-00339 March 16, 2020 2  The project has been reviewed and found to be in compliance with the Palo Alto Municipal Code and IR Guidelines 1-5.  This property contains a 300-year-old specimen valley oak that requires specific and carefully prescribed tree protection measures during construction.  Potential impacts of dewatering are sufficiently reduced and monitored through Public Works standard conditions of approval and policies for dewatering. This approval will become effective 14 calendar days from the postmark date of this letter, unless an appeal is filed, as provided by Chapter 18.77.075 of the PAMC. An appeal may be filed by written request with the City Clerk before the date the Director’s decision becomes final. The written request shall be accompanied by a fee, as set forth in the municipal fee schedule. Only an applicant, or the owner or tenant of an adjacent property may appeal. If you need assistance reviewing the plans, you may visit the City’s Development Center at 285 Hamilton Avenue. A copy of this letter shall accompany all future requests for City permits relating to this approval. This approval expires in 24 months from the effective date. Should you have any questions regarding this approval, please feel free to contact Emily Foley, AICP at emily.foley@cityofpaloalto.org. Sincerely, Jonathan Lait, AICP Director of Planning and Development Services Attachment A – Findings for Approval cc: Jack Morton, 2343 Webster St, Palo Alto, CA 94301, jack@mortoncpa.com Mary Ellen 2343 Webster St, Palo Alto, CA 94301, mycek@earthlink.net Sandra Browman, 2397 Webster St, Palo Alto, CA 94301 sandra.browman@yahoo.com Keith Bennett, kbennett@luxsci.net Neighbor notification list DocuSign Envelope ID: 5F69F71E-F7A2-4BBE-A368-09596D6D50FD 2353 Webster Street 18PLN-00339 March 16, 2020 3 Attachment A INDIVIDUAL REVIEW CONDITIONS OF APPROVAL 2353 Webster Street 18PLN-00339 March 16, 2020 The approval is subject to compliance with the following conditions. The property owner is solely responsible for the conditions of approval being met. Planning staff recommends the property owner discuss the conditions of approval with the contractor, designer, etc. and contact Planning staff with any questions. PLANNING DIVISION 1. SPECIAL CONDITIONS. Based on the significance of the 300 year old specimen Valley Oak tree (Quercus lobata), the following special conditions apply: a. The 14 feet of the existing foundation nearest the tree shall be abandoned (left in place - remain as existing). b. Demolition of the remaining existing foundation shall use air spade and/or hand tools only and be performed under the supervision of a Certified Arborist. c. The final Arborist Report shall be reviewed and approved by the City’s Urban Forester and printed on the building permit plans; all recommendations from the Arborist Report shall be followed. d. The tree protection fencing shall be installed prior to demolition, where feasible. Following demolition, the remainder of the tree protection fencing shall be installed per approved plans and no closer than 40 feet from the specimen Valley Oak. e. During demolition, the applicant’s consulting arborist shall make daily visits to the site and prepare a daily memo attesting to the contractor’s compliance with the arborists report and related Urban Forestry conditions of approval (Condition Numbers 27-40) f. During demolition and construction, all pervious area within the TPZ shall be covered with 12 inches of woodchips and a layer of plywood, to the satisfaction of Urban Forestry (Condition Numbers 28b and 28c) g. The location for the dewatering monitoring well required in Condition Number 43 shall be determined by the Director of Public Works prior to building permit approval to ensure the goals of the monitoring well are balanced with the need to protect the specimen Valley Oak. 2. PRECONSTRUCTION MEETING. A preconstruction meeting shall occur at the time of building permit issuance. The contractor, homeowner, contracted project arborist, as well as the project planner, urban forester, building official and supervising building inspector shall be present at this meeting to discuss construction-phase conditions of approval, particularly arborist supervision of demolition of the existing structure. DocuSign Envelope ID: 5F69F71E-F7A2-4BBE-A368-09596D6D50FD 2353 Webster Street 18PLN-00339 March 16, 2020 4 3. CONFORMANCE WITH PLANS. Construction and development shall conform to the approved plans entitled, “Yali Residence, 2353 Webster Street, Palo Alto, California,” stamped as received by the City on November 20, 2019 on file with the Planning Department, 250 Hamilton Avenue, Palo Alto, California except as modified by these conditions of approval. 4. BUILDING PERMIT. Apply for a building permit and meet any and all conditions of the Planning, Fire, Public Works, and Building Departments. 5. BUILDING PERMIT PLAN SET. A copy of this cover letter and conditions of approval shall be printed on the second page of the plans submitted for building permit. Project plans submitted for Building permits shall incorporate the following changes: a. Gravel is not allowed within the first 10 feet of the property. b. The roof overhang at the front entry counts towards the Lot Coverage. Please show this on the FAR diagram and cover sheet data table. c. The T sheets shall be updated with the arborist report dated September 2019 which was submitted separately from the Plan Set and received November 20, 2019 d. Tree protection fencing shall be shown on Site Plan, matching the Arborist Report e. A row of tall shrubs and/or at least two trees along the left side lot line starting from near the rear corner of the house and extending to the rear lot setback line. The trees and/or tall shrubs should be evergreen and form a relatively continuous screen with plants that can grow to at 20 feet tall under normal conditions. This shall be shown on the Site Plan. f. Provide the correct GB-1 sheet, signed by the applicant or owner 6. PROJECT MODIFICATIONS: All modifications to the approved project shall be submitted for review and approval prior to construction. If during the Building Permit review and construction phase, the project is modified by the applicant, it is the responsibility of the applicant to contact the Planning Division/project planner directly to obtain approval of the project modification. It is the applicant’s responsibility to highlight any proposed changes to the project and to bring it to the project planner’s attention. 7. OBSCURED/TRANSLUCENT GLAZING. All obscure glazing, as shown on the plan set, shall be permanent in nature and shall remain for the life of the structure. Obscure glazing is either decorative glazing that does not allow views through placed into the window frame or acid etched or similar permanent alteration of the glass. Films or like additions to clear glass are not permitted where obscure glazing is shown. Obscure glazing shall not be altered in the future and shall be replaced with like materials if damaged. If operable, these windows shall open towards the public right-of-way. 8. REQUIRED PARKING: All single family homes shall be provided with a minimum of one covered parking space (10 foot by 20 foot interior dimensions) and one uncovered parking space (8.5 feet by 17.5 feet). DocuSign Envelope ID: 5F69F71E-F7A2-4BBE-A368-09596D6D50FD 2353 Webster Street 18PLN-00339 March 16, 2020 5 9. UTILITY LOCATIONS: In no case shall utilities be placed in a location that requires equipment and/or bollards to encroach into a required parking space. In no case shall a pipeline be placed within 10 feet of a proposed tree and/or tree designated to remain. 10. NOISE PRODUCING EQUIPMENT: All noise producing equipment shall be located outside of required setbacks, except they may project 6 feet into the required street side setbacks. In accordance with Section 9.10.030, No person shall produce, suffer or allow to be produced by any machine, animal or device, or any combination of same, on residential property, a noise level more than six dB above the local ambient at any point outside of the property plane. 11. DAYLIGHT PLANE: The daylight plane must clear the point where the wall plane intersects the top of the roof material. 12. IMPERVIOUS SURFACE: A minimum of 60 % of the required front yard shall have a permeable surface that permits water absorption directly into the soil (Section 18.12.040 (h)). The building permit plan set shall include a diagram demonstrating compliance. 13. REQUIRED IR LANDSCAPING/TREES. The following landscaping is required to ensure the project’s conformance with the City’s IR Guidelines and therefore must remain for the life of the structure. Required new screening trees and shrubs shall be a minimum size of 24 inch box and measure at least eight (8) feet tall. a. A row of shrubs or a minimum of two large trees as described in Condition #3e. b. Existing oak tree in rear yard 14. PROJECT ARBORIST. The property owner shall hire a certified arborist to ensure the project conforms to all Planning and Urban Forestry conditions related to landscaping/trees. 15. TREE PROTECTION FENCING. Tree protection fencing shall be required for the front street tree and the rear yard oak tree. 16. FENCES. Fences and walls shall comply with the applicable provisions of Chapter 16.24, Fences, of the Palo Alto Municipal Code (PAMC). Heights of all new and existing fencing must be shown on the Building Permit plans. a. Where the existing fence is located off the subject property and/or where the existing fence is failing, a new Code compliant fence shall be constructed. 17. LIGHT WELLS. Railings around light wells shall be screened from street view. Screening may consist of plant material or fencing. DocuSign Envelope ID: 5F69F71E-F7A2-4BBE-A368-09596D6D50FD 2353 Webster Street 18PLN-00339 March 16, 2020 6 18. BASEMENT WALLS: Basement retaining walls shall not extend beyond the exterior wall plane of the first floor of the house, excluding lightwells, below grade patios and approved extensions, to the satisfaction of the Director of Planning. 19. BASEMENT CONSTRUCTION WALLS: Any walls, temporary or otherwise, installed to facilitate construction of a basement shall be removed or constructed in such a way as to not significantly restrict the growth of required landscaping, to the satisfaction of the Director of Planning. 20. DECONSTRUCTION SURVEY: A Deconstruction Survey is required for demolition permit applications submitted on or after January 1, 2017. This survey submittal shall include a list of materials that are salvageable from the project as well as the values of such materials. At this time, the City’s only approved vendor for this service is The ReUse People. Contact them to schedule this FREE service by phone (888)588-9490 or e-mail info@thereusepeople.org. More information can be found at www.TheReusePeople.org. If you have further questions, please contact Scott McKay at scott.mckay@cityofpaloalto.org. 21. PLANNING FINAL INSPECTION. A Planning Division Final inspection will be required to determine substantial compliance with the approved plans prior to the scheduling of a Building Division final. Any revisions during the building process must be approved by Planning, including but not limited to; materials, fenestration and hard surface locations. Contact your Project Planner at the number below to schedule this inspection. 22. PERMIT EXPIRATION. The project approval shall be valid for a period of two years from the original date of approval. Application for a one year extension of this entitlement may be made prior to expiration, by emailing the Current Planning Support Staff (Alicia Spotwood - Alicia.Spotwood@CityofPaloAlto.org). If a timely extension is not received, or the project has already received an extension and the applicant still wishes to pursue this project, they must first file for a new Planning application and pay the associated fees. This new application will be reviewed for conformance with the regulations in place at that time. 23. INDEMNITY: To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice. GREEN BUILDING & ENERGY REACH CODE REQUIREMENTS: NOTICE FOR PERMIT APPLICATIONS SUBMITTED ON OR AFTER 1/1/20: Please be advised that the Palo Alto City Council has approved Energy Ordinance 5485 and Green Building Ordinance 5481 for all new permit applications. The Green Building Ordinance has an effective date of January 1st, 2020 and the Energy Reach Code Ordinance has an effective date DocuSign Envelope ID: 5F69F71E-F7A2-4BBE-A368-09596D6D50FD 2353 Webster Street 18PLN-00339 March 16, 2020 7 of April 1, 2020. To review the upcoming changes, visit the Development Services webpage .On the left-hand side under “EXPLORE”, hover over “Green Building” and select “Compliance.” You may also email Green Building at GreenBuilding@cityofpaloalto.org for specific questions about your project. 24. GREEN BUILDING CONDITIONS OF APPROVAL a) The project is a new construction residential building of any size** and therefore must meet the California Green Building Code mandatory requirements outlined in Chapter 4, (with local amendments) plus Tier 2 minimum pre-requisites and electives outlined in Appendix A4* (with local amendments). The project must hire a Green Building Special Inspector for a pre-permit third-party design review and a third-party green building inspection process. The project must select a Green Building Special Inspector from the City’s list of approved inspectors. PAMC 16.14.080 (Ord. 5481 § 1, 2019) (1) *Note: Projects subject to Tier 1 or Tier 2 shall not be required to fulfill any requirements outlined in Appendix A4.2 Energy Efficiency. All energy efficiency measures are found in the 2019 California Energy Code and the Palo Alto Energy Reach Code PAMC 16.17 & 16.18 as described in the Energy Reach Code section of this letter. (2) **Accessory Dwelling Unit (Detached) Exception: (a) Free standing detached Accessory Dwelling Units of new construction shall meet the following: (i) California Green Building Standards Code Mandatory plus Tier 2 prerequisite requirements. (ii) No Planning and Design electives. (iii) Two (2) Water Efficiency and Conservation electives. (iv) Two (2) Material Conservation and Resource Efficiency electives. (v) One (1) Environmental Quality elective. b) The project is a residential construction project of any size with a given valuation of $25,000 or more and therefore must meet the enhanced construction waste reduction at Tier 2 (80% construction waste reduction). PAMC 16.14.260 (Ord. 5481 § 1 (part), 2019) c) The project is a new detached single-family, dwelling and therefore shall comply with the following requirements for electric vehicle supply equipment (EVSE): (a) In general. The property owner shall provide Conduit Only, EVSE-Ready Outlet, or EVSE Installed for each residence. The property owner shall provide as minimum a panel capable to accommodate a dedicated branch circuit and service capacity to install at least a 208/240V, 50 amperes grounded AC outlet (Level 2 EVSE). The raceway shall terminate in close proximity to the proposed location of the charging system into a listed cabinet, box, enclosure, or receptacle. The raceway shall be installed so that minimal removal of materials is necessary to complete the final installation. The raceway shall have capacity to accommodate a 100-ampere circuit. (b) Design. The proposed location of a charging station may be internal or external to the dwelling, and shall be in close proximity to an on-site parking space. The DocuSign Envelope ID: 5F69F71E-F7A2-4BBE-A368-09596D6D50FD 2353 Webster Street 18PLN-00339 March 16, 2020 8 proposed design must comply with all applicable design guidelines, setbacks and other code requirements. PAMC 16.14.420 (Ord. 5481 §1, 2019) 25. LOCAL ENERGY REACH CODE CONDITIONS OF APPROVAL – Effective 4/1/20 a) The project includes new residential construction of any size and is submitted for building permit on or after April 1, 2020 and therefore triggers the Local Energy Efficiency Reach Code. All new residential construction projects of any size submitted after January 1, 2020 until March 31, 2020 shall comply with statewide mandatory energy standards as outlined in the 2019 California Energy Code, Title 24, Part 6. i) Single-Family Residential Options: (1) New single-family residential construction projects shall be designed to be all-electric. (2) The installation of fireplaces, space-conditioning equipment, water heating system, clothes drying and cooking appliances shall be electric and not fueled by natural gas. (a) An All-Electric Building complies with the performance standard if both the Total Energy Design Rating and the Energy Efficiency Design Rating for the Proposed Building are no greater than the corresponding Energy Design Ratings for the Standard Design Building. (b) The Energy Budget for newly constructed buildings is expressed in terms of the Energy Design Rating, which is based on TDV energy. The Energy Design Rating (EDR) has two components, the Energy Efficiency Design Rating, and the Solar Electric Generation and Demand Flexibility Design Rating. The Solar Electric Generation and Demand Flexibility Design Rating shall be subtracted from the Energy Efficiency Design Rating to determine the Total Energy Design Rating. The Proposed Building shall separately comply with the Energy Efficiency Design Rating and the Total Energy Design Rating. (i) Compliance demonstration requirements for performance standards: Certificate of Compliance. The Certificate of Compliance is prepared and signed by a Certified Energy Analyst and the Total Energy Design Rating of the Proposed Design shall be no greater than the Standard Design Building. (Ord. 5485 §1, 2019) b) Mandatory Photovoltaic (PV) Requirements: i) All new low-rise residential buildings shall have a photovoltaic (PV) system meeting the minimum qualification requirements as specified in Joint Appendix JA11, with annual electrical output equal to or greater than the dwelling’s annual electrical usage. (CEC §150.1, 2019) 26. Additional Green Building and Energy Reach Code information, ordinances and applications can be found at http://www.cityofpaloalto.org/gov/depts/ds/green_building/default.asp. If you have any questions DocuSign Envelope ID: 5F69F71E-F7A2-4BBE-A368-09596D6D50FD 2353 Webster Street 18PLN-00339 March 16, 2020 9 regarding Green Building requirements please call the Green Building Consultant at (650) 329-2179 or send an email to GreenBuilding@CityofPaloAlto.org. PUBLIC WORKS URBAN FORESTRY CONDITIONS – Catherine Mondkar catherine.mondkar@cityofpaloalto.org 27. SPECIAL CONDITIONS. The Applicant shall strictly adhere to the recommendations for tree preservation, pneumatic/hand evacuation, and to all tree protection measures as outlined in the 9/22/19 Davey Resources Group arborist report, or as updated thereafter. Additional tree protection protocol shall be followed as specified by Palo Alto Urban Forestry in the following items below. a) The first fourteen feet (14’) of the existing concrete slab closest to tree #5 (72” DBH Valley Oak, Quercus lobata) shall be left in place, abandoned, and therefore shall not demolished. Regarding the remaining portion of the concrete slab to be demolished within the TPZ, the construction procedures as described in Condition 27 below are to be employed for the demolition of the remaining twenty-six feet (26’) of existing concrete slab within the TPZ. 28. SPECIAL TREE PROTECTION MEASURES. The Contractor shall under the supervision of an ISA certified Arborist furnish the following tree protection materials on site prior to commencing demolition of the specified portion of the existing home foundation. a) No heavy equipment or vehicles of any sort are to be used within the tree protection zone (TPZ= DBHx10/12= 60’ TPZ). Hand tools and pneumatic air spades only are to be used within the TPZ for the purpose of demolition. No loading of equipment, materials or objects of any sort may be stored within the TPZ. b) 12” inches of wood chips topped with sheets of plywood shall be furnished within all pervious areas of the tree protection zone within the scope of work prior to beginning demolition. c) As pervious areas within the TPZ are gradually exposed, 12” inches of wood chips topped with sheets of plywood shall be furnished within the remaining areas of the TPZ . d) Only hand and pneumatic excavation are to be used during deconstruction of the existing foundation. e) As demolition progresses and pervious areas are surfaced, any roots exposed to the air for greater than one (1) hour are to be wrapped in burlap to maintain moisture and covered in original soil where possible. f) Following hand and pneumatic demolition of the specified portion on the existing foundation, type I tree protection fencing (as specified on the T-1 sheet) shall be installed to the extent of the TPZ as per plan drawings and maintained for the duration of the project. 29. TREE PROTECTION INSPECTIONS. In addition to standard tree protection fencing inspections, at the time of pneumatic demolition around tree #5, City Staff will perform a tree protection inspection to ensure that hand excavation and tree protection measures are being met as outlined in the above- mentioned conditions of approval. Following demolition of the specified portion of the foundation, another tree protection inspection by City staff will take place to ensure that the required fencing is in place. DocuSign Envelope ID: 5F69F71E-F7A2-4BBE-A368-09596D6D50FD 2353 Webster Street 18PLN-00339 March 16, 2020 10 30. ARBORIST CONSTRUCTION SUPERVISION. For the duration of hand demolition within the TPZ, the project Arborist shall make a daily visit on site to ensure that tree protection measures, materials and best practices are being employed by the contractor and on-site foreman overseeing the work. 31. TREE APPRAISAL. Prior to the issuance of a grading or building permit, the applicant shall prepare and secure a tree appraisal for tree #5 (72” DBH Valley Oak, Quercus lobata). The appraisal of the condition and replacement value of tree #5 shall recognize the location of the tree in the proposed development. The appraisal may be part of the Tree Survey Report or listed separately. For the purposes of tree appraisal, the monetary market or replacement value shall be determined using the most recent version of the “Guide for Plant Appraisal”, in conjunction with the Species and Classification Guide for Northern California. The appraisal shall be performed at the applicant’s expense, and the appraiser shall be subject to the Director’s approval. See PAMC 8.10.020(k)(2), 8.10.110 (b)(2), and sections 6.25 and 6.40 of the Palo Alto Tree Technical Manual. 32. TREE APPRAISAL DURATION. The tree appraisal duration period shall be five years from the date of final occupancy. A tree shall be considered dead when the main leader has died back, 25% of the crown is dead or if major trunk or root damage is evident. A new tree or trees of equal or greater appraised value shall be planted in the same area by the property owner. Landscape area and irrigation shall be readapted to provide optimum growing conditions for the replacement tree(s). The replacement tree(s) that are planted shall be subject to a new two-year establishment and monitoring program. The project sponsor shall provide an annual tree evaluation report as originally required. 33. TREE PROTECTION COMPLIANCE. The owner and contractor shall implement all protection and inspection schedule measures, design recommendations and construction scheduling as stated in the TPR & Sheet T-1, and is subject to code compliance action pursuant to PAMC 8.10.080. The required protective fencing shall remain in place until final landscaping and inspection of the project. Project arborist approval must be obtained and documented in the monthly activity report sent to the City. The mandatory Contractor and Arborist Monthly Tree Activity Report shall be sent monthly to the City (pwps@cityofpaloalto.org) beginning with the initial verification approval, using the template in the Tree Technical Manual, Addendum 11. 34. PLAN CHANGES. Revisions and/or changes to plans before or during construction shall be reviewed and responded to by the (a) project site arborist, or (b) landscape architect with written letter of acceptance before submitting the revision to the Building Department for review by Planning, PW or Urban Forestry. 35. TREE DAMAGE. Tree Damage, Injury Mitigation and Inspections apply to Contractor. Reporting, injury mitigation measures and arborist inspection schedule (1-5) apply pursuant to TTM, Section 2.20- 2.30. Contractor shall be responsible for the repair or replacement of any publicly owned or protected trees that are damaged during the course of construction, pursuant to Title 8 of the Palo Alto Municipal Code, and city Tree Technical Manual, Section 2.25. DocuSign Envelope ID: 5F69F71E-F7A2-4BBE-A368-09596D6D50FD 2353 Webster Street 18PLN-00339 March 16, 2020 11 36. GENERAL. The following general tree preservation measures apply to all trees to be retained: No storage of material, topsoil, vehicles or equipment shall be permitted within the tree enclosure area. The ground under and around the tree canopy area shall not be altered. Trees to be retained shall be irrigated, aerated and maintained as necessary to ensure survival. 37. BUILDING PERMIT SUBMITTAL- PROJECT ARBORIST CERTIFICATION LETTER. Prior to submittal for staff review, attach a Project Arborist Certification Letter that he/she has; (a) reviewed the entire building permit plan set submittal and, (b) affirm that ongoing Contractor/Project Arborist site monitoring inspections and reporting have been arranged with the contractor or owner (see Sheet T-1) and, (c) understands that design revisions (site or plan changes) within a TPZ will be routed to Project Arborist/Contractor for review prior to approval from City. 38. TREE PROTECTION VERIFICATION. Prior to any site work verification from the contractor that the required protective fencing is in place shall be submitted to the Urban Forestry Section. The fencing shall contain required warning sign and remain in place until final inspection of the project. 39. EXCAVATION RESTRICTIONS APPLY (TTM, Sec. 2.20 C & D). Any approved grading, digging or trenching beneath a tree canopy shall be performed using ‘air-spade’ method as a preference, with manual hand shovel as a backup. For utility trenching, including sewer line, roots exposed with diameter of 1.5 inches and greater shall remain intact and not be damaged. If directional boring method is used to tunnel beneath roots, then Table 2-1, Trenching and Tunneling Distance, shall be printed on the final plans to be implemented by Contractor. 40. PLAN SET REQUIREMENTS. The final Plans submitted for building permit shall include the following information and notes on relevant plan sheets: a) SHEET T-1, BUILDING PERMIT. The building permit plan set will include the City’s full-sized, Sheet T-1 (Tree Protection-it's Part of the Plan!), available on the Development Center website at http://www.cityofpaloalto.org/civicax/filebank/documents/31783. The Applicant shall complete and sign the Tree Disclosure Statement and recognize the Project Arborist Tree Activity Inspection Schedule. Monthly reporting to Urban Forestry/Contractor is mandatory. (Insp. #1: applies to all projects; with tree preservation report: Insp. #1-7 applies) b) The Tree Preservation Report (TPR). All sheets of the Applicant’s TPR approved by the City for full implementation by Contractor, shall be printed on numbered Sheet T-1 (T-2, T-3, etc) and added to the sheet index. c) Plans to show protective tree fencing. The Plan Set (esp. site, demolition, grading & drainage, foundation, irrigation, tree disposition, utility sheets, etc.) must delineate/show the correct configuration of Type I, Type II or Type III fencing around each Regulated Tree, using a bold dashed line enclosing the Tree Protection Zone (Standard Dwg. #605, Sheet T-1; City Tree Technical Manual, Section 6.35-Site Plans); or by using the Project Arborist’s unique diagram for each Tree Protection Zone enclosure. DocuSign Envelope ID: 5F69F71E-F7A2-4BBE-A368-09596D6D50FD 2353 Webster Street 18PLN-00339 March 16, 2020 12 PUBLIC WORKS ENGINEERING CONDITIONS – Ajay Kumar ajay.kumar@cityofpaloalto.org The following shall be addressed prior to issuance of a Building Permit, Excavation and Grading Permit, Certificate of Compliance, Street Work Permit and/or Encroachment Permit. 41. DEMOLITION PLAN: Place the following note adjacent to an affected tree on the Site Plan and Demolition Plan: “Excavation activities associated with the proposed scope of work shall occur no closer than 10-feet from the existing street tree, or as approved by the Urban Forestry Division contact 650-496-5953. Any changes shall be approved by the same”. 42. GRADING PERMIT: Separate Excavation and Grading Permit will be required for grading activities on private property that fill, excavate, store or dispose of 100 cubic yards or more based on PAMC Section 16.28.060. Applicant shall prepare and submit an excavation and grading permit to Public Works separately from the building permit set. The permit application and instructions are available at the Development Center and on our website. http://www.cityofpaloalto.org/gov/depts/pwd/forms_and_permits.asp 43. GRADING & DRAINAGE PLAN: The plan set must include a grading & drainage plan prepared by a licensed professional that includes existing and proposed spot elevations, earthwork volumes, finished floor elevations, area drain and bubbler locations, drainage flow arrows to demonstrate proper drainage of the site. Adjacent grades must slope away from the house a minimum of 2% or 5% for 10-feet per 2013 CBC section 1804.3. Downspouts and splashblocks should be shown on this plan, as well as any site drainage features such as swales, area drains, bubblers, etc. Grading that increases drainage onto, or blocks existing drainage from neighboring properties, will not be allowed. Public Works generally does not allow rainwater to be collected and discharged into the street gutter, but encourages the developer to keep rainwater onsite as much as feasible by directing runoff to landscaped and other pervious areas of the site. See the Grading & Drainage Plan Guidelines for New Single Family Residences on the City’s website. http://www.cityofpaloalto.org/civicax/filebank/documents/2717 44. BASEMENT DRAINAGE: Due to high groundwater throughout much of the City and Public Works prohibiting the pumping and discharging of groundwater, perforated pipe drainage systems at the exterior of the basement walls or under the slab are not allowed for this site. A drainage system is, however, required for all exterior basement-level spaces, such as lightwells, patios or stairwells. This system consists of a sump, a sump pump, a backflow preventer, and a closed pipe from the pump to a dissipation device onsite at least 10-feet from the property line and 3-feet from side an rear property lines, such as a bubbler box in a landscaped area, so that water can percolate into the soil and/or sheet flow across the site. Include these dimensions on the plan. The device must not allow stagnant water that could become mosquito habitat. Additionally, the plans must show that exterior basement-level spaces are at least 7-3/4” below any adjacent windowsills or doorsills to minimize the potential for flooding the basement. Public Works recommends a waterproofing consultant be retained to design and inspect the vapor barrier and waterproofing systems for the basement. DocuSign Envelope ID: 5F69F71E-F7A2-4BBE-A368-09596D6D50FD 2353 Webster Street 18PLN-00339 March 16, 2020 13 45. BASEMENT SHORING: Shoring Plans prepared by a licensed professional are required for the Basement Excavation and shall be submitted with the Grading and Excavation Permit. Shoring for the basement excavation, including tiebacks, must not extend onto adjacent private property or into the City right-of-way without having first obtained written permission from the private property owners and/or an encroachment permit from Public Works. 46. The site drainage system that collects runoff from downspouts and landscape area shall be a separated from the pump system that discharges runoff from light wells. Plot and clearly label the two separate systems and including the separate outfalls for each system. 47. UTILITIES: Note that all above ground utilities, such as transformer, backflow preventer, gas meters, etc., shall be located within project site but accessible from the street. Any new or relocated utilities will correspond with approved locations from City Utilities Department. 48. GEOTECHNICAL REPORT: Shall clearly identify the highest projected groundwater level to be encountered in the area of the proposed basement in the future will be ______ feet below existing grade. Provide the following note on the Final Grading Plans. “In my professional judgement, the highest projected groundwater level to be encountered in the area of the proposed basement in the future will be ______ feet below existing grade. As a result, the proposed drainage system for the basement retaining wall will not encounter and pump groundwater during the life of this wall.” 49. DEWATERING: Excavation may require dewatering during construction. Public Works only allows groundwater drawdown well dewatering. Open pit groundwater dewatering is not allowed. Dewatering is only allowed from April through October due to inadequate capacity in our storm drain system. The geotechnical report for this site must list the highest anticipated groundwater level. We recommend that a piezometer be installed in the soil boring. The contractor shall determine the depth to groundwater immediately prior to excavation by using a piezometer or by drilling and exploratory hole. Based on the determined groundwater depth and season the contractor may be required to dewater the site or stop all grading and excavation work. In addition Public Works may require that all groundwater be tested for contaminants prior to initial discharge and at intervals during dewatering. If testing is required, the contractor must retain an independent testing firm to test the discharge water for contaminants Public Works specifies and submit the results to Public Works. Public Works reviews and approves dewatering plans as part of a Grading Permit and Dewatering Permit. The applicant can include a dewatering plan in the building permit plan set in order to obtain approval of the plan during the building permit review, but the contractor will still be required to obtain a Grading Permit prior to dewatering. Alternatively, the applicant must include the above dewatering requirements in a note on the site plan. Public Works has dewatering guidelines available at the Development Center and on our website. https://www.cityofpaloalto.org/gov/depts/pwd/forms_and_permits/default.asp DocuSign Envelope ID: 5F69F71E-F7A2-4BBE-A368-09596D6D50FD 2353 Webster Street 18PLN-00339 March 16, 2020 14 50. WATER FILLING STATION: applicant shall install a water station for the non-potable reuse of the dewatering water. This water station shall be constructed within private property, next to the right- of-way, (typically, behind the sidewalk). The station shall be accessible 24 hours a day for the filling of water carrying vehicles (i.e. street sweepers, etc.). The water station may also be used for onsite dust control. Before a discharge permit can be issued, the water supply station shall be installed, ready for operational and inspected by Public Works. The groundwater will also need to be tested for contaminants and chemical properties for the non-potable use. The discharge permit cannot be issued until the test results are received. Additional information regarding the station will be made available on the City’s website under Public Works. 51. WORK IN THE RIGHT-OF-WAY: The plans must clearly indicate any work that is proposed in the public right-of-way, such as sidewalk replacement, driveway approach, or utility laterals. The plans must include notes that the work must be done per City standards and that the contractor performing this work must first obtain a Street Work Permit from Public Works at the Development Center. If a new driveway is in a different location than the existing driveway, then the sidewalk associated with the new driveway must be replaced with a thickened (6” thick instead of the standard 4” thick) section. Additionally, curb cuts and driveway approaches for abandoned driveways must be replaced with new curb, gutter and planter strip. 52. Provide the following note on the Site Plan and adjacent to the work within the Public road right- of-way. “Any construction within the city’s public road right-of-way shall have an approved Permit for Construction in the Public Street prior to commencement of this work. THE PERFORMANCE OF THIS WORK IS NOT AUTHORIZED BY THE BUILDING PERMIT ISSUANCE BUT SHOWN ON THE BUILDING PERMIT FOR INFORMATION ONLY.” 53. Provide the following note on the Site Plan and Grading and Drainage Plan: “Contractor shall not stage, store, or stockpile any material or equipment within the public road right-of-way.” Construction phasing shall be coordinate to keep materials and equipment onsite. 54. SIDEWALK, CURB & GUTTER: As part of this project, the applicant shall replace those portions of the existing sidewalks, curbs, gutters or driveway approaches in the public right-of-way along the frontage(s) of the property. Contact Public Works’ inspector at 650-496-6929 to arrange a site visit so that the inspector can discuss the extent of replacement work along the public road. The site plan submitted with the building permit plan set must show the extent of the replacement work. The plan must note that any work in the right-of-way must be done per Public Works’ standards by a licensed contractor who must first obtain a Street Work Permit from Public Works at the Development Center. Provide site direction sheet obtained from PW inspector in plan set. 55. Any existing driveway to be abandoned shall be replaced with standard curb & gutter. This work must be included within a Permit for Construction in the Public Street from the Public Works DocuSign Envelope ID: 5F69F71E-F7A2-4BBE-A368-09596D6D50FD 2353 Webster Street 18PLN-00339 March 16, 2020 15 Department. A note of this requirement shall be placed on the plans adjacent to the area on the Site Plan. 56. IMPERVIOUS SURFACE AREA: The project will be creating or replacing 500 square feet or more of impervious surface. Accordingly, the applicant shall provide calculations of the existing and proposed impervious surface areas with the building permit application. The Impervious Area Worksheet for Land Developments form and instructions are available at the Development Center or on our website. 57. PUBLIC WORKS STANDARDS CONDITIONS: The City's full-sized "Standard Conditions" sheet must be included in the plan set. Copies are available from Public Works on our website: http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=67175.06&BlobID=66261 58. STORM WATER POLLUTION PREVENTION: The City's full-sized "Pollution Prevention - It's Part of the Plan" sheet must be included in the plan set. Copies are available from Public Works on our website http://www.cityofpaloalto.org/civicax/filebank/documents/2732 59. This project triggers the California Regional Water Quality Control Board’s revised provision C.3 for storm water regulations (incorporated into the Palo Alto Municipal Code, Section 16.11) that apply to residential land development projects that create or replace between 2,500 and 10,000 square feet of impervious surface area. The applicant must implement one or more of the following site design measures on the grading and drainage plan:  Direct roof runoff into cisterns or rain barrels for reuse.  Direct roof runoff onto vegetated areas.  Direct runoff from sidewalks, walkways, and/or patios onto vegetated areas.  Direct runoff from driveways and/or uncovered parking lots onto vegetated areas.  Construct sidewalks, walkways, and/or patios with permeable surfaces.  Construct driveways, and/or uncovered parking lots with permeable surfaces 60. Provide the following as a note on the Site Plan: “The contractor may be required to submit a logistics plan to the Public Works Department prior to commencing work that addresses all impacts to the City’s right-of-way, including, but not limited to: pedestrian control, traffic control, truck routes, material deliveries, contractor’s parking, concrete pours, crane lifts, work hours, noise control, dust control, storm water pollution prevention, contractor’s contact, noticing of affected surrounding properties , and schedule of work. The requirement to submit a logistics plan will be dependent on the number of applications Public Works Engineering receives within close proximity to help mitigate and control the impact to the public-right-of-way. If necessary, Public Works may require a Logistics Plan during construction.” End Project Conditions DocuSign Envelope ID: 5F69F71E-F7A2-4BBE-A368-09596D6D50FD 0 PLANNING &DEVELOPMENT SERVICES CITY OF 250 Hami ton Avenue,5th FloorPALOPaloAlto,CA 91a301 ALTO (650)329-2441 December 5,2019 Gordana PavIovh 602 Hawthorne Avenue Palo Alto,CA 94301 Email:design@gordana.net SUBJECT:2353 Webster Street (18PLN-00339)Individual Review The Director of Planning and Community Environment has conditionally approved your Single Family Individual Review application to allow demolition of an exi5ting single story residence and construction of a new two-story single-family residence with an attached one-cat garage in the R-1 zoning district. This approval was granted pursuant to the Palo Alto Municipal Code Sections 18.12.110 and 18.77.075. The proposed project is exempt from the provisions of the California Environmental Quality Act (CEQA) in accordance with Guideline Section 15303 (New Construction).As conditioned,the project meets all five of the Palo Alto Single Family Individual Review Guidelines and complies with the R-1 Zone District development regulations. This approval will become effective 14 days from the postmark date of this letter,unless the Planning Department receives a written request for a Directors Heating prior to the end of the business day 14 calendar-days after the postmark date.Only an applicant,or the owner or tenant of an adjacent property may request a hearing.As the plans may have been revised since the original submittal, interested parties may wish to review the tentatively approved plans online at the City’s Planning webpage bit.ly/PABuildingEye.If you need assistance reviewing the plans,you may visit the City’s Development Center at 285 Hamilton Avenue. This letter and attached conditions and findings shall be printed onto building permit plans relating to this approval.if the building permit has not been issued and construction commenced within two years from the effective approval date,this approval will expire.Awritten request for an extension may be submitted prior to the expiration date.The Director may grant a one-year extension of this approval.Should you have any questions regarding this approval,please do not hesitate to call Emily Foley,Project Planner,at (650)617-3125 or e-mail at Emily.foley@cityofpaloalto.org. Sincerely, Emily Foley,AICP Associate Planner cc:Neighbor notification list (adjacent neighbors)Attachment:Conditions of Approval Property Owner 0 0 2353 Webster St.approval ndividual Review 18PLN-00339 Page 2 of 12 INDIVIDUAL REVIEW CONDITIONS OF APPROVAL 2353 Webster Street,18PLN-00339 The approval is subject to compliance with the following conditions.The property owner is solely responsible for the conditions of approval being met.Planning staff recommends the property owner discuss the conditions of approval with the contractor,designer,etc.and contact Planning staff with any questions. The approval is subject to the following conditions; PLANNING DIVISION CONDITIONS: 1.CONFORMANCE WITH PLANS.Construction and development shall conform to the approved plans entitled,“Vail Residence,2353 Webster Street,Palo Alto,California,”stamped as received by the City on November 20,2019 on file with the Planning Department,250 Hamilton Avenue,Palo Alto, California except as modified by these conditions of approval. 2.BUILDING PERMIT.Apply for a building permit and meet any and all conditions of the Planning, Fire,Public Works,and Building Departments. 3.BUILDING PERMIT PLAN SET.A copy of this cover letter and conditions of approval shall be printed on the second page of the plans submitted for building permit.Project plans submitted for Building permits shall incorporate the following changes: a.Gravel is not allowed within the first 10 feet of the property. b.The roof overhang at the front entry counts towards the Lot Coverage.Please show this on the FAR diagram and covet sheet data table. c.The Tsheets shall be updated with the arborist report dated September 2019 which was submitted separately from the Plan Set and received November 20,2019 U.Tree protection fencing shall be shown on Site Plan,matching the Arborist Report e.A row of tall shrubs and/or at least two trees along the left side lot line starting from near the tear corner of the house and extending to the rear lot setback line.The trees and/or tall shrubs should be evergreen and form a relatively continuous screen with plants that can grow to at 20 feet tall under normat conditions.This shall be shown on the Site Plan. f.Provide the correct GB-i sheet,signed by the applicant or owner 4.PROJECT MODIFICATIONS:All modifications to the approved project shall be submitted for review and approval prior to construction,If during the Building Permit review and construction phase,the project is modified by the applicant,it is the responsibility of the applicant to contact the Planning Division/project planner directly to obtain approval of the project modification.It is the applicant’s responsibility to highlight any proposed changes to the project and to bring it to the project planner’s attention. 2353 Webster St.approval Individual Review 18PLN-00339 Page 3 of 12 5.OBSCURED/TRANSLUCENT GLAZING.All obscure glazing,as shown on the plan set,shall be permanent in nature and shall remain for the life of the structure.Obscure glazing is either decorative glazing that does not allow views through placed into the window frame or acid etched or similar permanent alteration of the glass.Films or like additions to cleat glass are not permitted where obscure glazing is shown.Obscure glazing shall not be altered in the future and shall be replaced with like materials if damaged.If operable,these windows shall open towards the public right-of-way. 6.REQUIRED PARKING:All single family homes shall be provided with a minimum of one covered parking space (10 foot by 20 foot interior dimensions)and one uncovered parking space (8.5 feet by 17.5 feet). 7.UTILITY LOCATIONS:In no case shall utilities be placed in a location that requires equipment and/or bollards to encroach into a required parking space.In no case shall a pipeline be placed within 10 feet of a proposed tree and/or tree designated to remain. 8.NOISE PRODUCING EQUIPMENT:All noise producing equipment shall be located outside of required setbacks,except they may project 6 feet into the required street side setbacks.In accordance with Section 9.10.030,No person shall produce,suffer or allow to be produced by any machine,animal or device,or any combination of same,on residential property,a noise level more than six dB above the local ambient at any point outside of the property plane. 9.DAYLIGHT PLANE:The daylight plane must clear the point where the wall plane intersects the top of the roof material. 10.IMPERVIOUS SURFACE:A minimum of 60%of the required front yard shall have a permeable surface that permits water absorption directly into the soil (Section 18.12.040 fh)).The building permit plan set shall include a diagram demonstrating compliance. 11.REQUIRED IR LANDSCAPING/TREES.The following landscaping is required to ensure the project’s conformance with the City’s IR Guidelines and therefore must remain for the life of the structure. Required new screening trees and shrubs shall be a minimum size of 24 inch box and measure at least eight (8)feet tall. a.A row of shrubs or a minimum of two large trees as described in Condition 113e. b.Existing oak tree in rear yard 12.PROJECT ARBORIST.The property owner shall hire a certified arborist to ensure the project conforms to all Planning and Urban Forestry conditions related to landscaping/trees. 13.TREE PROTECTION FENCING.Tree protection fencing shall be required for the front street tree and the rear yard oak tree. 0 a 2353 Webster St.approval Individual Review 18PLNO0339 Page 4 of 12 14.FENCES.Fences and walls shall comply with the applicable provisions of Chapter 16.24,Fences,of the Palo Alto Municipal Code (PAMC).Heights of all new and existing fencing must be shown on the Building Permit plans. a.Where the existing fence is located off the subject property and/or where the existing fence is failing,a new Code compliant fence shall be constructed. 15.LIGHT WELLS.Railings around light wells shall be screened from Street view.Screening may consist of plant material or fencing. 16.BASEMENT WALLS:Basement retaining walls shall not extend beyond the exterior wall plane of the first floor of the house,excluding lightwells,below grade patios and approved extensions,to the satisfaction of the Director of Planning. 17.BASEMENT CONSTRUCTION WALLS:Any walls,temporary or otherwise,installed to facilitate construction of a basement shall be removed or constructed in such a way as to not significantly restrict the growth of required landscaping,to the satisfaction of the Director of Planning. 18.DECONSTRUCTION SURVEY:ADeconstruction Survey is required for demolition permit applications submitted on or after January 1,2017.This survey submittal shall include a list of materials that are salvageable from the project as well as the values of such materials.At this time,the City’s only approved vendor for this service is The ReUse People,Contact them to schedule this FREE service by phone (888)588-9490 or e-mail info@thereusepeople.org.More information can be found at www.TheReusePeople.org.If you have further questions,please contact Scott McKay at scott.mckay@cityofpaloalto.org. 19.PLANNING FINAL INSPECTION.A Planning Division Final inspection will be required to determine substantial compliance with the approved plans prior to the scheduling of a Building Division final. Any revisions during the building process must be approved by Planning,including but not limited to;materials,fenestration and hard surface locations.Contact your Project Planner at the number below to schedule this inspection. 20.PERMIT EXPIRATION.The project approval shall be valid for a period of two years from the original date of approval.Application for a one year extension of this entitlement may be made prior to expiration,by emailing the Current Planning Support Staff (Alicia Spotwood - Alicia.Spotwood(ECityofPaIoAlto.org).If a timely extension is not received,or the project ha5 already received an extension and the applicant still wishes to pursue this project,they must first file for a new Planning application and pay the associated fees.This new application will be reviewed for conformance with the regulations in place at that time. 21.INDEMNITY:To the extent permitted by law,the Applicant shall indemnify and hold harmless the City,its City Council,its officers,employees and agents (the “indemnified parties”)from and against any claim,action,or proceeding brought by a third party against the indemnified parties and the applicant to attack,set aside or void,any permit or approval authorized hereby for the Project, 0 2333 Webster St.approval Individual Review 8PLN-00339 Page 5 of 12 including (without limitation)reimbursing the City for its actual attorneys’fees and costs incurred in defense of the litigation.The City may,in its sole discretion,elect to defend any such action with attorneys of its own choice. GREEN BUILDING &ENERGY REACH CODE REQUIREMENTS: NOTICE FOR PERMITAPPLICATIONS SUBMI7TED ON ORAFTER 1/1/17:Please be advised that the Palo Alto City Council has approved Energy Ordinance 5383 and Green Building Ordinance 5393 far all new permit applications with on effective date for Januoty 1r,2017.To review the upcoming changes,visit the Development Services webpage .On the left-hand side under “EXPLORE”,hover over “Green Building”and select “Compliance.”For information regarding the Model Water Efficient Landscape Ordinance,please see the Outdoot Water Efficiency Webpoge for compliance documentation.You may also email Green Building at GreenBuildiaa@cityofpploaltp,orp Jot specfic questions about your project. 22.GREEN BUILDING CONDITIONS OF APPROVAL a)The proiect is a new construction residential building of any size and therefore must meet the California Green Building Code mandatory requirements outlined in Chapter 4,(with local amendments)plus Tier 2 minimum pre-requisites and electives outlined In Appendix A4*(with local amendments).The project must hire a Green Building Special Inspector for a pre-permit third-party design review and a third-party green building inspection process.The project must select a Green Building Special Inspector from the City’s list of approved inspectors.PAMC 16.14.080 (Ord.5393 5 1,2016) (1)*Note:Projects subject to Tier 1 or Tier 2 shall not be required to fulfill any requirements outlined in Appendix A4.2 Energy Efficiency.All energy efficiency measures are found in the 2016 California Energy Code and the Palo Alto Energy Reach Code PAMC 16.17 &16.18 as described in the Energy Reach Code section of this letter. b)Model Water Efficient Landscape Ordinance (MWELO):The project is a residential new construction project with an aggregate landscape area of 500 square feet or mote included in the project scope of work and therefore shall comply with the requirements of the Landscape Documentation Package (5492.3).Please see the Outdoor Water Efficiency Webpage for compliance documentation.(MWELO Title 23,Chapter 2.7) c)The prolect is a residential construction project of any size and therefore must meet the enhanced construction waste reduction at Tier 2 (80%construction waste reduction).PAMC 16.14.260 (Ord.5393 §1 (part),2016) U)The project is a new detached single-family dwelling and therefore shall comply with the following requirements for electric vehicle supply equipment fEVSE): (a)The property owner shall provide as minimum a panel capable to accommodate a dedicated branch circuit and service capacity to install at least a 208/240V,50 amperes grounded ACoutlet (Level 2 EVSE).The raceway shall terminate in close proximity to the proposed location of the charging system into a listed cabinet,box, enclosure,or receptacle.The raceway shall be installed so that minimal removal of 0 2353 Webster St.approval Individual Review 18PLN-00339 Page 6 of 12 materials is necessary to complete the final installation.The raceway shall have capacity to accommodate a 100-ampere circuit. (b)Design.The proposed location of a charging station may be internal or external to the dwelling,and shall be in close proximity to an on-site parking space.The proposed design must comply with all applicable design guidelines,setbacks and other code requirements.PAMC 16.14.420 (Ord.5393 §2,2016) 23.LOCAL ENERGY REACH CODE CONDITIONS OF APPROVAL a)The project includes new residential construction of any size and therefore triggers the Local Energy Efficiency Reach Code.For all new single-family residential there are two compliance options and one all-electric exception. i)Single-Family Residential Options: (1)OPTION 1:Performance:New single-family residential construction projects without a solar photovoltaic (PV)system,the performance approach specified within the 2016 California Energy Code shall be used to demonstrate that the TDV Energy of the proposed building is at least 10%less than the TDV Energy of the Standard Design,ifthe proposed building does not include a PV systems. (a)Solar Ready Infrastructure:A dedicated solar zone shall be located on the rood or overhang of the building and have a total area no less than 500 square feet.Install a conduit extending from the roofline and terminating at the electrical panel. (2)OPTION 2:Performance:New single-family residential construction projects JJi a solar photovoltaic (PV)system,the performance approach specified within the 2016 California Energy Code shall be used to demonstrate that the TDV Energy of proposed single-family residential construction is at least 20%less than the TDV Energy of the Standard Design,if the proposed building includes a photovoltaic system. (a)Solar Ready Infrastructure:A dedicated solar zone shall be located on the rood or overhang of the building and have a total area no less than 500 square feet.Install a conduit extending from the roofline and terminating at the electrical panel. b)All Electric Exemption: I)All-Electric Exception to the Local Energy Reach Code:New single-family residential construction that is designed and built to be all-electric shall be exempt from the requirements of Section 100.3.Local Energy Efficiency Reach Code. 24.Additional Green Building and Energy Reach Code information,ordinances and applications can be found at http://www.cityofpaloafto.org/gov/depts/ds/green_buildingJdefault.asp.If you have any question5 regarding Green Building requirements please call the Green Building Consultant at (650)329-2179. 2353 Webster St.approval Individual Review 18PCN-00339 Page7ofl2 PUBLIC WORKS URBAN FORESTRY CONDtTIONS —Catherine Mondkar catherine.mondkaricitypfoaloalto.org 25.The Applicant must strictly adhere to the recommendations for tree preservation and pneumatic/hand evacuation and to all tree protection measures as outlined in the 9/22/19 Davey Resources Group arborist report. In addition to standard tree protection fencing inspections,inspections at the time of demotion/excavation around tree #5 will take place by City Staff to ensure that hand excavation and tree protection measures are being met.Additional tree protection fencing inspections may applythroughout the course of construction.See general comments below: 26.TREE PROTECTION COMPLIANCE.The owner and contractor shall implement all protection and inspection schedule measures,design recommendations and construction scheduling as stated in the TPR &Sheet T-1,and is subject to code compliance action pursuant to PAMC 8.10.080.The required protective fencing shall remain in place until final landscaping and inspection of the project. Project arborist approval must be obtained and documented in the monthly activity report sent to the City.The mandatory Contractor and Arborist Monthly Tree Activity Report shall be sent monthly to the City (pwps@cityofpaloalto.org)beginning with the initial verification approval,using the template in the Tree Technical Manual,Addendum 11. 27.PLAN CHANGES.Revisions and/or changes to plans before or during construction shall be reviewed and responded to by the (a)project site arborist,or fb)landscape architect with written letter of acceptance before submitting the revision to the Building Department for review by Planning,PW or Urban Forestry. 2$.TREE DAMAGE.Tree Damage,Injury Mitigation and Inspections apply to Contractor,Reporting,injury mitigation measures and arborist inspection schedule (1-5)apply pursuant toUM,Section 2.20-2.30. Contractor shall be responsible for the repair or replacement of any publicly owned or protected trees that are damaged during the course of construction,pursuant to Title $of the Palo Alto Municipal Code,and city Tree Technical Manual,Section 2.25. 29.GENERAL.The following general tree preservation measures apply to all trees to be retained:No storage of material,topsoil,vehicles or equipment shall be permitted within the tree enclosure area. The ground under and around the tree canopy area shall not be altered.Trees to be retained shall be irrigated,aerated and maintained as necessary to ensure survival. 30.BUILDING PERMIT SUBMITTAL-PROJECT ARBORIST CERTIFICATION LETTER.Prior to submittal for staff review,attach a Project Arborist Certification Letter that he/she has;(a)reviewed the entice building permit plan set submittal and,(b)affirm that ongoing Contractor/Project Arborist site monitoring inspections and reporting have been arranged with the contractor or owner (see Sheet T-1)and,fc)understands that design revisions (site or plan changes)within a TPZ will be routed to Project Arborist/Contractor for review prior to approval from City. 0 0 2353 Webster St.approval Individual Review 18PLN-00339 Page 8 of 12 31.TREE PROTECTION VERIFICATION.Prior to any site work verification from the contractor that the required protective fencing is in place shall be submitted to the Urban Forestry Section.The fencing shall contain required warning sign and remain in place until final inspection of the project. 32.EXCAVATION RESTRICTIONS APPLY (UM,Sec.2.20 C &D).Any approved grading,digging or trenching beneath a tree canopy shall be performed using ‘air-spade’method as a preference,with manual hand shovel as a backup.For utility trenching,including sewer line,roots exposed with diameter of 1.5 inches and greater shall remain intact and not be damaged.If directional boring method is used to tunnel beneath roots,then Table 2-1,Trenching and Tunneling Distance,shall be printed on the final plans to be implemented by Contractor. 33.PLAN SET REQUIREMENTS.The final Plans submitted for building permit shall include the following Information and notes on relevant plan sheets: a.SHEETT-1,BUILDING PERMIT.The building permit plan set will include the City’s full-sized,Sheet T-1 (Tree Protection-it’s Part of the Plan!),available on the Development Center website at http://www.cityoftaloalto.org/civicax/filebank/documents/31783.The Applicant shall complete and sign the Tree Disclosure Statement and recognize the Project Arborist Tree Activity Inspection Schedule.Monthly reporting to Urban Forestry/Contractor is mandatory. (lnsp.#1:applies to all projects;with tree preservation report:lnsp.#1-7 applies) b.The Tree Preservation Report ITPR).All sheets of the Applicant’s TPR approved by the City for full implementation by Contractor,shall be printed on numbered Sheet T-1 fT-2,T-3,etc)and added to the sheet index. C.Plans to showprotective tree fencing.The Plan Set (esp.site,demolition,grading &drainage, foundation,irrigation,tree disposition,utility sheets,etc.)must delineate/show the correct configuration of Type I,Type It or Type Ill fencing around each Regulated Tree,using a bold dashed line enclosing the Tree Protection Zone (Standard Dwg.#605,Sheet T-1; City Tree Technical Manual,Section 6.35-Site Plans);or by using the Project Arborist’s unique diagram for each Tree Protection Zone enclosure. PUBLIC WORKS ENGINEERING CONDITIONS —Ajay Kumar ajay.kumar@cityofpaIoaIto.org The following shall be addressed prior to issuance of a Building Permit,Excavation and Grading Permit, Certificate of Compliance,Street Work Permit and/or Encroachment Permit. 34.DEMOLITION PLAN:Place the following note adjacent to an affected tree on the Site Plan and Demolition Plan:“Excavation activities associated with the proposed scope of work shall occur no closer than 10-feet from the existing street tree,or as approved by the Urban Forestry Division contact 650-496-5953.Any changes shall be approved by the same”. 35.GRADING PERMIT:Separate Excavation and Grading Permit will be required for grading activities on private property that fill,excavate,store or dispose of 100 cubic yards or mote based on PAMC Section 16.28.060.Applicant shall prepare and submit an excavation and grading permit to Public Works separately from the building permit set.The permit application and instructions are available at the Development Center and on our website. C V 2353 Webster St approval Individual Review 1SPLN 00339 Page9ofl2 V http ://www.cityofpaloa lto.org/gov/depts/pwd/forms and permits.asp 36.GRADING &DRAINAGE PLAN:The plan set must include a grading &drainage plan prepared by a licensed professional that includes existing and proposed spot elevations,earthwork volumes, finished floor elevations,area drain and bubbler locations,drainage flow arrows to demonstrate proper drainage of the site.Adjacent grades must slope away from the house a minimum of 2%or 5%for 10-feet per 2013 CBCsection 1804.3.Downspouts and splashblocks should be shown on this plan,as well as any site drainage features such as swales,area drains,bubblers,etc.Grading that increases drainage onto,or blocks existing drainage from neighboring properties,will not be allowed.Public Works generally does not allow rainwater to be collected and discharged into the Street gutter,but encourages the developer to keep rainwater onsite as much as feasible by directing runoff to landscaped and other pervious areas of the Site.See the Grading &Drainage Plan Guidelines for New Single Family Residences on the City’s website. http://www.cityofpaloalto.org/civicax/filebank/documents/2717 37.BASEMENT DRAINAGE:Due to high groundwater throughout much of the City and Public Work5 prohibiting the pumping and discharging of groundwater,perforated pipe drainage systems at the exterior of the ba5ement walls or under the slab are not allowed for this site.Adrainage system is, however,required for all exterior basement-level spaces,such as lightwells,patios or stairwells. This system consists of a sump,a sump pump,a backflow preventer,and a closed pipe from the pump to a dissipation device onsite at least 10-feet from the property line and 3-feet from side an rear property lines,such as a bubbler box in a landscaped area,so that water can percolate into the soil and/or sheet flow across the site.Include these dimensions on the plan.The device must not allow stagnant water that could become mosquito habitat.Additionally,the plans must show that exterior basement-level spaces are at least 7-3/4”below any adjacent windowsills or doorsills to minimize the potential for flooding the basement.Public Works recommends a waterproofing consultant be retained to design and inspect the vapor barrier and waterproofing systems for the basement. 38.BASEMENT SHORING:Shoring Plans prepared by a licensed professional are required for the Basement Excavation and shall be submitted with the Grading and Excavation Permit.Shoring for the basement excavation,including tiebacks,must not extend onto adjacent private property or into the City right-of-way without having first obtained written permission from the private property owners and/or an encroachment permit from Public Works. 39.The site drainage system that collects runoff from downspouts and landscape area shall be a separated from the pump system that discharges runoff from light wells.Plot and clearly label the two separate systems and including the separate outfalls for each system. 40.UTILITIES:Note that all above ground utilities,such as transformer,backflow preventer,gas meters, etc.,shall be located within project site but accessible from the street.Any new or relocated utilities will correspond with approved locations from City Utilities Department. 0 0 2353 Webster St.approval Individual Review I8PLN-00339 Page 10 of 12 41.GEOTECHNICAL REPORT:Shall clearly identify the highest projected groundwater level to be encountered in the area of the proposed basement in the future will be ______ feet below existing grade.Provide the following note on the Final Grading Plans.“In my professional judgement,the highest projected groundwater level to be encountered in the area of the proposed basement in the future will be _______ feet below existing grade.As a result,the proposed drainage system for the basement retaining wall will not encounter and pump groundwater during the life of this wall.” 42.DEWATERING:Excavation may require dewatering during construction.Public Works only allows groundwater drawdown well dewatering.Open pit groundwater dewatering is not allowed. Dewatering is only allowed from April through October due to inadequate capacity in our storm drain system.The geotechnical report for this site must list the highest anticipated groundwater level.We recommend that a piezometer be installed in the soil boring.The contractor shall determine the depth to groundwater immediately prior to excavation by using a piezometer or by drilling and exploratory hole.Based on the determined groundwater depth and season the contractor may be required to dewater the site or stop all grading and excavation work.In addition Public Works may require that all groundwater be tested for contaminants prior to initial discharge and at intervals during dewatering.If testing is required,the contractor must retain an independent testing firm to test the discharge water for contaminants Public Works specifies and submit the results to Public Works. Public Works reviews and approves dewatering plans as part of a Grading Permit and Dewatering Permit.The applicant can include a dewatering plan in the building permit plan set in order to obtain approval of the plan during the building permit review,but the contractor will still be requited to obtain a Grading Permit prior to dewatering.Alternatively,the applicant must include the above dewatering requirements in a note on the site plan.Public Works has dewatering guidelines available at the Development Center and on our website. http://www.cityofpaloalto.org/gov/depts/pwd/forms_and_permits.asp 43.WATER FILLING STATION:applicant shall install a water station for the non-potable reuse of the dewatering water.This water station shall be constructed within private property,next to the right- of-way,(typically,behind the sidewalk).The station shall be accessible 24 hours a day for the filling of water carrying vehicles (i.e.street sweepers,etc.).The water station may also be used for onsite dust control,Before a discharge permit can be issued,the water supply station shall be installed, ready for operational and inspected by Public Works.The groundwater will also need to be tested for contaminants and chemical properties for the non-potable use.The discharge permit cannot be issued until the test results are received.Additional information regarding the station will be made available on the City’s website under Public Works. 44.WORK INTHE RIGHT-OF-WAY:The plans must clearly indicate any work that is proposed in the public right-of-way,such as sidewalk replacement,driveway approach,or utility laterals.The plans must include notes that the work must be done per City standards and that the contractor performing this work must first obtain a Street Work Permit from Public Works at the Development Center.If a new driveway is in a different location than the existing driveway,then the sidewalk 0 2353 Webster St.approval Individual Review 18PLN-00339 Page 11 of 12 associated with the new driveway must be replaced with a thickened (6”thick instead of the standard 4”thick)section.Additionally,curb cuts and driveway approaches for abandoned driveways must be replaced with new curb,gutter and planter strip. 45.Provide the following note on the Site Plan and adjacent to the work within the Public road right-of- way.“Any construction within the city’s public toad right-of-way shall have an approved Permit for Construction in the Public Street prior to commencement of this work.THE PERFORMANCE OF THIS WORK IS NOT AUTHORIZED BYTHE BUILDING PERMIT ISSUANCE BUT SHOWN ON THE BUILDING PERMIT FOR INFORMATION ONLY.” 46.Provide the following note on the Site Plan and Grading and Drainage Plan:“Contractor shall not stage,store,or stockpile any material or equipment within the public road tight-of-way.” Construction phasing shall be coordinate to keep materials and equipment onsite. 47.SIDEWALK,CURB &GUTTER:As part of this project,the applicant shall replace those portions of the existing sidewalks,curbs,gutters or driveway approaches in the public right-of-way along the frontage(s)of the property.Contact Public Works’inspector at 650-496-6929 to arrange a site visit so that the inspector can discuss the extent of replacement work along the public road.The site plan submitted with the building permit plan set must show the extent of the replacement work. The plan must note that any work in the tight-of-way must be done per Public Works’standards by a licensed contractor who must first obtain a Street Work Permit from Public Works at the Development Center.Provide site direction sheet obtained from PW inspector in plan set. 48.Any existing driveway to be abandoned 5hall be replaced with standard curb &gutter.This work must be included within a Permit for Construction in the Public Street from the Public Works Department.A note of this requirement shall be placed on the plans adjacent to the area on the Site Plan. 49.IMPERVIOUS SURFACE AREA:The project will be creating or replacing 500 square feet or more of impervious surface.Accordingly,the applicant shall provide calculations of the existing and proposed impervious surface areas with the building permit application.The Impervious Area Worksheet for Land Developments form and instructions are available at the Development Center or on our website. 50.PUBLIC WORKS STANDARDS CONDITIONS:The City’s full-sized “Standard Conditions”sheet must be included in the plan set.Copies are available from Public Works on our website: http://www.cityofpaIoalto.org/civicax/filebank/blobdload.aspx?t67;75.06&Blobl D=6626 1 51.STORM WATER POLLUTION PREVENTION:The City’s full-sized “Pollution Prevention -It’s Part of the Plan”sheet must be included in the plan set.Copies are available from Public Works on our website http://www.cityofpallto.org/civicax/fllebank/documents/2732 0 0 2353 Webster St.approval ndlvidual Review 8PLN-00339 Page 120112 52.This project triggers the California Regional Water Quality Control Board’s revised provision C.3 for storm water regulations (incorporated into the Palo Alto Municipal Code,Section 16.11)that apply to residential land development projects that create or replace between 2,500 and 10,000 square feet of impervious surface area.The applicant must implement one or more of the following site design measures on the grading and drainage plan: •Direct roof runoff into cisterns or rain barrels for reuse. •Direct roof runoff onto vegetated areas. •Direct runoff from sidewalks,walkways,and/or patios onto vegetated areas. •Direct runoff from driveways and/or uncovered parking lots onto vegetated areas. •Construct sidewalks,walkways,and/or patios with permeable surfaces. •Construct driveways,and/or uncovered parking lots with permeable surfaces 53.Provide the following as a note on the Site Plan:“The contractor may be required to submit a logistics plan to the Public Works Department prior to commencing work that addresses all impacts to the City’s right-of-way,including,but not limited to:pedestrian control,traffic control,truck routes,material deliveries,contractor’s parking,concrete pours,crane lifts,work hours,noise control,dust control,storm water pollution prevention,contractor’s contact,noticing of affected surrounding properties,and schedule of work.The requirement to submit a logistics ptan will be dependent on the number of applications Public Works Engineering receives within close proximity to help mitigate and control the impact to the public-right-of-way.If necessary,Public Works may require a Logistics Plan during construction.” End Project Conditions 124-05-037 124-05-038 124-05-033 124-05-060 124-05-061 132-01-085 132-01-074 124-05-018 124-05-034 4-05-041 124-05-040 124-05-039 124-05-059 124-05-035 124-05-036 124-05-019 124-05-032 132-01-084 132-01-072 132-01-082 124-05-017 124-05-016 T OREGON A VENUE O REG O N EXPRESS W A Y G O REGON A VENUE 584 5 586 586 2330 2330 2397 2397 2371 371 2360 2370 2370 2370A 555 555 2343 2343 2353 2353 2333 333 2350 2350 615 615 2360 2360 609 609 2320 613 613 604 604 618 612 612 234 2361 2361 2375 2375 9 685 685A 6 5 0 This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Assessment Parcel Palo Alto Assessment Parcel Palo Alto Assessment Parcel Outside Palo Alto abc Road Centerline Small Text (TC) Curb Face (RF) Pavement Edge (RF) abc Address Label (AP) Current Features 0' 69' Attachment D: Location Map2353 Webster Street18PLN-00339 CITY O F PALO A L TO IN C O R P O RATE D CALIFOR N IA P a l o A l t oT h e C i t y o f A P RIL 16 1894 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2016 City of Palo Alto efoley2, 2020-04-24 09:22:49Assessor Parcels (\\cc-maps\Encompass\Admin\Meta\View.mdb) UPDATED: February 26, 2020 1 Regulations for Groundwater Dewatering during Construction of Below Ground Structures A How-to Guide to Meeting City of Palo Alto Dewatering Requirements I. BACKGROUND In recent years, concerns that temporary construction-related groundwater dewatering may be wasting water, potentially damaging structures, trees and vegetation, and depleting or altering the flow of groundwater, have arisen. In response, the City of Palo Alto (City) established new requirements in February 2016 designed to minimize and standardize the process of pumping and discharge of groundwater from dewatering of below ground structures (e.g., basement or parking garage) during construction. After the results of new groundwater dewatering regulations from the 2016 and 2017 Construction Seasons, the City Council approved several enhancements to the dewatering policy that were codified in the Palo Alto Municipal Code and went into effect in May 2017, and again in December 2017 (Attachment 1). The 2017 changes included improving Fill Station performance, monitoring actual groundwater elevation changes during assessing impacts on nearby structures, clarifying reporting requirements, and a Hydrogeological Study (Study). This guide provides further explanation regarding the most recent code changes (which became effective on February 21, 2018) and is intended to assist project applicants in meeting code requirements. II. GENERAL GROUNDWATER DEWATERING REQUIREMENTS Note that this document is in reference to temporary groundwater dewatering during construction of below ground structures. This document does not contain information regarding dewatering of existing below ground structures in the City of Palo Alto. Temporary construction-related groundwater dewatering (dewatering) may be conducted using 1) groundwater exclusionary techniques (e.g., secant or cut-off walls), or 2) controlled groundwater pumping, also known as drawdown well dewatering. The City’s Public Works Department (Public Works) does not allow open pit dewatering of groundwater during construction; however, it may be allowed, if water quality limits are met, for removal of rainwater if it has accumulated at the bottom of an excavation site. If rainwater dewatering is required, the project manager/applicant must contact the City’s Watershed Protection Group at (650) 329-2122 before discharging to the City’s storm drain system. Attachment 2 provides applicants a basic flow chart to understand the City’s compliance process regarding the two types of allowed construction dewatering. To assist the City in determining whether dewatering will likely be required in the construction of below ground structures, the project applicant must submit a Geotechnical Report, also known as a soils report, (separate from the Hydrogeological Study described below) prior to the Building Permit application. In addition, if the deepest excavation will be within five feet of the anticipated groundwater level stated in the Geotechnical Report, the contractor must determine the depth to groundwater immediately prior to submittal of the Excavation and Grading Permit. It is recommended that the boring hole for this depth measurement be protected and maintained and used as the monitoring well for the dewatering operations. UPDATED: February 26, 2020 2 As discussed later in this document, all dewatering sites are required to install a monitoring well onsite at the farthest feasible point from the underground structure. Placing this boring correctly and protecting it may avoid future work. If groundwater is found to be within two feet of the deepest excavation, a drawdown well dewatering system or cutoff wall must be installed. Regardless of this testing, if groundwater is actually encountered during construction (and the applicant does not have a dewatering permit), the contractor must immediately stop all work and must meet all of the following requirements prior to resuming work. The City’s dewatering season is April 1 through October 31 due to the capacity of the City's storm drain system. Dewatering to the sanitary sewer system is prohibited, exceptions may be allowed only under special circumstances and with a discharge permit obtained through Public Works’ Watershed Protection Group. During the dewatering season, sites will be allowed to dewater for a 12-week time period, including a two-week start-up period. The two-week start-up period is intended to provide adequate time for the contractor to meet the City’s dewatering requirements as well as City staff to inspect and monitor the dewatering start-up operation. At the end of the two-week start-up period, compliance with all performance standards and water quality standards, the hydrogeological study data, shall be demonstrated in order to continue dewatering. Residential sites are expected to complete dewatering within the allotted time period. Dewatering beyond 12 weeks is allowed only under special circumstances and if approved by the City Engineer. The City will consider allowing groundwater discharges to occur (to the storm drain system) from November 1 to March 31 if the applicant can provide sufficient evidence that the receiving storm drain line and water body has sufficient capacity to accommodate a 10-year, 6-hour storm event in addition to the dewatering discharge (a pipe capacity calculation). Where dewatering is required, applicants shall conduct dewatering in full compliance with the provisions of Chapter 16.28 (Excavation, Grading and Fills) as well as Chapter 9.10 (Noise) of the City’s Municipal Code, the regulations in this guide, and other permit conditions established by City staff. Due to the complexity of dewatering projects, City staff may impose and enforce additional requirements when or after a permit is issued in order to ensure public safety, ensure the condition of its infrastructure, or to protect the water quality of downstream water bodies. During the period of construction and dewatering discharge, project applicants/permittees are expected to promptly implement actions identified and required by City staff, including, but not limited to, notices of non-compliance and directives requiring immediate cessation of discharge. Administrative penalties may be put into effect for sites not in compliance with any of the City requirements, and will accrue if the applicant does not comply as requested by the City. A cessation order may be issued for reasons including, but not limited to: capacity issues in the storm drain or sanitary sewer systems; storm drain or sanitary sewer system failures; excess flow entering the Palo Alto Regional Water Quality Control Plant, including exceptional storm events; emergency or routine maintenance of City infrastructure; protection of the environment, public health, safety and welfare; and failure to follow the terms/conditions/requirements of any permit. UPDATED: February 26, 2020 3 NOTE: All information contained in the dewatering permit application, dewatering permit, supporting documents, and the associated street work permit will be made available to the public upon request. III. GROUNDWATER EXCLUSIONARY TECHNIQUE REQUIREMENTS If the rate of groundwater discharge is greater than thirty gallons per minute for residential sites, groundwater exclusionary techniques cannot be used, and the requirements of Subsections IV (below) shall be followed. When groundwater exclusionary techniques are utilized, applicants must submit to the City a Dewatering Permit – Groundwater Exclusionary Technique packet with a Grading and Excavation Permit application (after Planning entitlement is approved). The Grading and Excavation Permit for a project will not be issued until all required submittals related to dewatering have been submitted, reviewed and approved by Public Works Engineering staff. The (Exclusionary Techniques) Dewatering Packet (Attachment 3) shall include the following: 1) Exclusionary Technique Permit form, 2) Exclusionary Technique plan, and 3) Inspection Checklist. Groundwater exclusionary techniques shall be conducted in compliance with the following: A. The rate of discharge of groundwater shall be limited to thirty gpm or less for residential dewatering projects. B. The Dewatering Plan shall be followed at all times and shall consist of a plan view of the project site and include all required features of the dewatering operation such as but not limited to: metered settling tank and it’s safely accessible location onsite, monitoring well at the farthest feasible onsite point from the excavation, location and size of percolation pits, pump location/s, associated piping, and stabilized construction entrance. C. Groundwater Use Plan shall illustrate how the groundwater will be used to the maximum extent practicable and without discharge to the storm drain system. When feasible, the primary focus of discharge shall be to percolate the discharge onto the construction property, usually into percolation pits. A secondary method of discharge should be to percolate the groundwater onto adjacent neighbor properties upon their permission (this should be handled between the project applicant and the property owners without facilitation or further approval from the City). Finally, the groundwater may be trucked offsite and, in coordination with the City’s Urban Forestry and/or Parks and Recreation staff, distributed throughout the City to locations that can use the water. D. The applicant shall install a groundwater monitoring well at the site. It shall be located at the farthest feasible onsite point from the underground structure. Initial groundwater level results must be included in the dewatering plan (same data point as the one required prior to grading and excavation permit application). E. Project status reporting: During the construction period of the underground structure, the applicant must submit periodic groundwater level reports and have the data available per request. At minimum, monitoring well data shall be collected daily for the first two weeks beginning with the start of the excavation UPDATED: February 26, 2020 4 activity and weekly thereafter. A final report shall be submitted two weeks after pumping of residual water ceases. All status reports should be submitted to Public Works Engineering (PWE) staff at the Development Center, email to the PWE staff person reviewing the project is preferred. Questions should be directed to pwecips@CityofPaloAlto.org. NOTE: Administrative Penalties may be imposed upon failure to follow the required reporting frequency. IV. CONTROLLED GROUNDWATER PUMPING (WITHOUT A SECANT OR CUT-OFF WALL) REQUIREMENTS When controlled groundwater pumping techniques are utilized, applicants must submit to the City a Dewatering Permit – Controlled Groundwater Pumping Packet with the Excavation and Grading Permit and Street Work Permit applications (after Planning entitlement is approved). The Excavation and Grading permit for a project will not be issued until all required submittals have been received, reviewed, and approved by PWE staff. A Dewatering Permit must be obtained before any discharge from the site occurs. Note that for residential projects, the Excavation and Grading Permit is only issued concurrently with the Building Permit. While discharging to the storm drain system, construction work on the underground structure shall be continuous and occur daily (in accordance with approved work hours). The contractor shall make progress towards completion of the underground structure without delay and following the detailed construction schedule provided in the Excavation and Grading Permit and/or the Dewatering Permit packet. In addition to what is required for exclusionary techniques (aside from the cut-off wall itself and the 30 gpm limitation), a Hydrogeological Study and an in-depth Groundwater Use Plan must also be submitted. Refer to the Controlled Groundwater Pumping Dewatering Permit Packet in Attachment 4 for more information. The following provides additional details regarding the City’s controlled groundwater pumping requirements: HYDROGEOLOGICAL STUDY REQUIREMENTS HAVE CHANGED: Public Works will no longer accept the use of “single layer models” to analyze subsurface soil condition of a particular parcel or project site where an underground structure is proposed and where dewatering is required. A “single layer model” is defined as any calculation, computer program or other method, which models the composition and/or properties of subsurface soils as a single, homogeneous layer of material. Site specific tests shall be performed to generate data in order to model the subsurface soil properties and produce a more accurate, site-specific, model. Additional information is detailed below. As with exclusionary techniques, the applicant shall install a groundwater monitoring well on the construction site at the farthest feasible point from the underground structure. Initial groundwater level results must be included in the Hydrogeological Study. During the construction period of the underground structure, the applicant must submit frequent groundwater level reports and have the data available per request. At minimum, monitoring well data shall be conducted daily for the first two weeks of the 12-week period and weekly UPDATED: February 26, 2020 5 thereafter. At the end of the two week start-up period, or thereafter, if drawdown results are greater than anticipated, the applicant shall submit a revised Dewatering Hydrogeological Study and any revised conclusions on impacts of the groundwater drawdown. A. Dewatering Hydrogeological Study - The purpose of this Study is to determine the initial, pre-construction groundwater levels as well as the impacts of groundwater pumping on the site and surrounding area. The Study should include the radius of influence (i.e. extent of cone of depression) from each dewatering well (if more than one is installed on-site) as a function of time, based on local soil and groundwater conditions. The Hydrogeological Study shall demonstrate that the dewatering plan has been designed to the maximum extent practicable to minimize the volume of water pumped during the dewatering operation, the flow rate, and the duration of the pumping. The Study shall be stamped by a California licensed Hydrogeologist or California licensed Geotechnical Engineer and submitted to the City as part of the Dewatering Packet. The Study should also include the following items: i. A minimum of 4 borings or other subsurface tests (Cone Penetrometer Tests, CPTs, are preferred) shall be performed across the project site/excavation area by a California licensed Geotechnical Engineer in order to develop a multilayer model of the subsurface soil conditions and properties. The tests should be performed to a depth of no less than 30 feet below existing grade (for residential projects). The test data shall be used to create a multi-layer model of subsurface conditions; single-layer models which model site conditions as a homogenous layer will not be accepted. 1. The data shall be used to design a dewatering plan based on the subsurface conditions/strata which results in the minimization of pumped water to the maximum extent practicable. 2. Well depth shall be specified based upon the subsurface conditions. 3. The pump depth within the dewatering well shall be specified based on the subsurface conditions and required drawdown. ii. A description and cross section(s) of the cone(s) of depression of any on- site monitoring well(s) as well as any nearby dewatering sites within a 400-foot radius of the property that may interact with or be influenced by the dewatering activity at the site. The location of the monitoring well(s) and nearby sites should also be shown on a map. iii. Anticipated drawdown curve and pumping flow rate. A description and cross section(s) of the cones of depression of the dewatering wells shall be calculated and graphed. The predicted drawdown level (depth to groundwater) at the onsite monitoring well shall be shown as a function of time; accurately graphed cross sections with data points or tabular data format shall be provided. The anticipated pumping flow rate shall be calculated for the dewatering system as well as the total volume due to be pumped for the 12 week dewatering period and daily totals. UPDATED: February 26, 2020 6 1. NOTE: The depth of each dewatering well pump will be verified in the field once installed and prior to any dewatering operations. iv. Using extrapolated data from the drawdown curves, determine the pumping rates needed to achieve the following drawdown performance: Prior to pouring a basement slab, groundwater may be pumped no deeper than three feet below the depth of the slab, measured at the center. After the slab is poured, groundwater may be pumped no deeper than one foot below the center. These values can be extrapolated using the (verified) drawdown curves and the on-site monitoring well data points. B. Groundwater Use Plan (Plan) shall demonstrate how the pumped groundwater will be used to the maximum extent practicable. Two required components of this plan are the 1) groundwater flow meter and sediment settling tank system and 2) the Fill Station. Both components must be inspected and approved by City staff before obtaining a Controlled Groundwater Pumping Dewatering Permit. Inspections and approvals are documented via the Inspection Checklist (Attachment 4), which must be signed by a Public Works Inspector prior to issuing the Grading Permit, Dewatering Permit, Street Work permit, and associated Building Permit; no Dewatering Permit will be issued without a Public Works Inspector–signed Checklist. At a minimum, the Plan should include the items below; however, the applicant should be creative in their plan to use the pumped groundwater and shall adhere to the Plan throughout the dewatering period: i. Groundwater flow meter and sediment settling tank system: 1. Provide an accurate, non-mechanical flow meter with a data logger in good working condition at the inlet of the tank. The flow meter shall be positioned in a location which is safely accessible by City inspectors on a regular basis. Both flow rate and total flow measurements shall be easily readable and set to gallons. Before any water is pumped, the initial flow meter reading shall be checked and verified by the Watershed Protection Inspector (WP Inspector) as part of the initial dewatering Inspection Checklist approval process. The WP Inspector will collect meter readings on a daily basis during the two-week start-up period and weekly thereafter; the contractor is required to also monitor and record the meter readings using the same frequency. a. The area surrounding the tank should be kept clear at all times, with a safe pathway to the meter and tank. b. The edge of the tank should not be at the edge of the excavation area, as it may lead to unsafe conditions. c. The contractor shall contact PW Inspection prior to changing or replacing any meter. d. The point of outlet on the settling tank cannot be at the bottom of the settling tank. e. The settling tank must have a discharge valve which can be locked in a closed position. PW or WP Inspectors will UPDATED: February 26, 2020 7 lock the discharge valve to ensure that the erroneous discharge does not occur and that the City is notified and aware of exactly when discharge begins. Further sections below explain this process in greater detail. 2. Design the tank system so that the storage tank is always at minimum one-half full during the entire dewatering period to facilitate water truck usage. 3. Prior to the start-up period and as part of the Inspection Checklist process, once the tank is at least half-full and before any discharge of groundwater occurs, contact Watershed Protection at (650) 329-2122 for an initial inspection and for water quality testing. For non-(contaminated) plume areas, basic measurements will generally include pH, conductivity and turbidity. 4. After the WP Inspector collects water quality samples and provides a clearance that the sample is within acceptable limits, the contractor will contact the WP Inspector to temporarily unlock the tank discharge valve to allow the tank to be drained to the property while waiting to obtain the Dewatering Permit Packet from Public Works Engineering. Consult the WP Inspector for assistance. Provide a screen or other covering over the tank for mosquito management. City staff may require the use of Bacillus thuringiensis israelensis (Bti), a naturally occurring soil bacterium that effectively kills mosquito larvae, if necessary. ii. A Fill Station shall be constructed to provide the City and nearby residents and business owners the opportunity to use the pumped groundwater and to minimize the amount discharged to the storm drain system. The Fill Station should include two methods for water distribution: a truck-filling outlet for water truck distribution to sites in the City and a fill-up outlet, or hose bibbs, for neighboring properties. Detailed information about the fill station and its components is listed below. When the Fill Station is ready, contact Public Works Engineering Inspection staff (PWE Inspector) at (650) 496-6929 for an inspection of both the Fill Station and settling tank system and contact Building Inspection staff at (650) 444-6173 for an Electrical Safety Check. (Inspectors must check off these items on the Inspection Checklist.) The following is required for the Fill Station: 1. Location and set-up: • Locate the Fill Station outside the site construction fence to allow 24-hour access. The construction site should be locked outside of normal construction hours. • A lock is not required at the Fill Station, but if the applicant deems it necessary, a combination lock should be used with the combination of 2, 4, 6, 8 (or other easily UPDATED: February 26, 2020 8 remembered combination and shared with City Inspectors). • Truck fill outlet: provide a 2.5-inch hydrant fitting hose connection with a 50-foot traffic-rated hose. • Neighboring properties fill outlet: provide at least two 100-foot (minimum) hoses arranged on reels and connected to standard hose bibs. Hose bibs shall produce a minimum of 10gpm at the end of each 100 foot hose simultaneously. The applicant shall allow adjacent properties to use hoses connected to the fill station(s). Hoses shall be placed in a manner that is safe to the public and does not cause damage to neighboring or City property. Hoses shall not cross the street. The City may modify these requirements as circumstances require. • As with the tank system, the fill station shall include accurate and safely accessible, non-mechanical flow meters with data loggers in good working condition at the outlet point of the Fill Station to log water reuse. Both flow rate and total flow measurements shall be easily readable and set to gallons. The initial flow meter reading should be noted before any water is pumped. Flow meter reading shall be checked and verified by the PWE or WP Inspector as part of the initial dewatering approval process, Inspection Checklist. The WP Inspector will collect Fill Station meter readings on a daily basis during the two- week start-up period and weekly thereafter; the contractor is required to also monitor and record the meter readings using the same frequency. • Supply log sheets and a pen for truck drivers to log the truck company, date, and amount of each fill-up. • The temporary power source needed for the Fill Station should be placed inside the construction site (and NOT in the Fill Station), if possible. If needed, a switch with an in- use cover to power on the Fill Station pump may be placed inside the fill station cabinet. An additional switch with an in-use cover for the truck-fill hose pump should be provided. Both switches should be clearly labeled. • Provide easy-to-read signage for the Fill Station (including “Do not Drink”) and directions explaining how to use it. • For the hose bibs, provide signage that reads "No Hoses Crossing Street, Sidewalk, or Private Properties." 2. The applicant must demonstrate maximum 10-minute fill time for a ~2700 gallon water truck as part of the Inspection Checklist signoff. 3. Prior to the commencement of dewatering activities, the applicant shall notify occupants of neighboring properties of the temporary availability of water. Contact Public Works Engineering UPDATED: February 26, 2020 9 staff (650 329-2496, Option 8) for copies of door hangers to be used for notification. Door hangers not collected/received by the residents must be removed after 24 hours. iii. Irrigation of sites: The applicant is responsible for having the pumped groundwater delivered to nearby sites as directed by the City. The applicant shall contract with or otherwise provide water truck service; the water truck operator/company shall contact the City’s Urban Forestry staff should be contacted by the truck service company at (650) 496-5986 to determine the location of sites to be irrigated. During the first six weeks of dewatering activities (not including the two-week start-up period), water should be trucked one full day (8 hours) per week from the project site to the irrigation sites. This shall increase to five days per week (8 hours per day) during the remaining 4 weeks of the dewatering period. iv. On-site Use of Groundwater: Pumped groundwater should be used on the construction site as needed and whenever possible. This includes controlled infiltration, irrigation of existing landscaping, dust suppression and other construction needs. C. A Pre-construction Building Condition Survey and Report of structures located on adjacent parcels prepared by a licensed surveyor and meeting City standards must be submitted, reviewed, and approved prior to obtaining a dewatering permit. The survey must be prepared by a California licensed surveyor whereas the photographic and narrative report may be prepared by the applicant. Both documents shall be submitted at the same time as one report. The applicant is responsible for obtaining permission from neighboring property owners to enter their property to take survey points of the building interior. If permission is not granted, City staff should be notified; however, interior survey points are not required in order to obtain a Dewatering Permit. The survey shall include a photographic and narrative report on the external condition of each structure as well as surveyed and marked elevations of adjacent parcels, with particular attention to the condition of concrete foundations, structural connections, brickwork, plasterwork and other architectural finishes that are susceptible to cracking. The report shall assess the likelihood that the proposed dewatering would cause effects (including but not limited to settlement or movement) on off- site private or public structures or infrastructure, including the right-of-way, easements, and utilities within public utility easements, and the health or viability of vegetation or trees. To the extent that the report concludes that off-site effects are reasonably likely to occur, the applicant shall identify avoidance measures to be implemented that will minimize the type and severity of those effects and shall develop a monitoring plan to assess any actual effects on vegetation, trees, structures and infrastructure. D. A pipe capacity calculation is required. This calculation shall show that the storm drain inlet to which the dewatering water is proposed to be discharged to can accommodate the anticipated dewatering discharge in addition to a 10-year, 6 hour storm event. PW Engineering can assist in providing the appropriate storm UPDATED: February 26, 2020 10 drain staff for assistance. NOTE: If the pipe capacity analysis determines that the storm drain discharge point cannot accommodate the dewatering flow in addition to the 10 year, 6 hour, storm event, a Dewatering permit CANNOT be issued the day-of or after the date which is 12 weeks prior to October 31st. In other words, dewatering cannot begin within 12 weeks of October 31st. E. A detailed construction schedule must be included in the dewatering permit application packet. This schedule shall detail construction phases such as, but not limited to: a. Equipment mobilization b. Shoring installation c. Dewatering plan setup d. Excavation activity e. Dewatering start f. Finished excavation g. Basement construction – base rock, rebar, forms, plumbing, concrete, waterproofing, etc. h. Backfill i. Dewatering end The construction schedule shall list the duration of each step in days/weeks and total the number of weeks between Dewatering start and Dewatering end. F. A Dewatering Regulation Acknowledgement Statement must be signed by the property owner/s and licensed contractor and shall accompany the dewatering application. G. Contractor is required to begin shoring installation and excavation once the Excavation and Grading permit is issued and PRIOR to any dewatering operations. In order to minimize the volume of groundwater discharged to the storm drain and to maximize the 12 week allowable dewatering period, the dewatering system may ONLY be turned on once the excavation has encountered water or reached a depth within 2 feet of where groundwater is located based on the current monitoring well measurement at that time. The contractor is required to contact PW Inspection or WP Inspection prior to dewatering operation startup to unlock the settling tank discharge valve. Once the discharge valve is unlocked, the contractor must IMMEDIATELY obtain the dewatering permit from PW staff at the Development Center. If the dewatering permit is not immediately obtained on the same day the discharge valve is unlocked, PW will revoke the Excavation and Grading permit and daily administrative penalties may apply. H. STARTUP of dewatering operations is limited to Monday through Thursday ONLY. UPDATED: February 26, 2020 11 Dewatering may NOT start Friday through Sunday. I. Upon dewatering shutdown, the settling tank meter shall remain in place until City staff have recorded the final meter reading; PW or WP inspection should be contacted to record the meter reading. J. Verify the anticipated drawdown curve with a pump test performed on monitoring well(s) installed on the project site. Though the City is not currently requiring a particular type of pump test, the type used should be authorized and approved by a California licensed Hydrogeologist or CA licensed Geotechnical Engineer. Using the pump test and any other relevant data, the report shall state the anticipated pumping flow rate as well as the total amount of water due to be pumped for the 12 week dewatering period; daily pumped totals shall also be included. Following the two-week start-up period, the dewatering, pumping rates and maximum amount of water pumped on a daily basis shall be limited to the values calculated in the verification study. F. Project status reporting: During the construction period of the underground structure, the applicant must submit periodic reports and have the data available per request. Report contents and submittal frequency requirements are listed below. All status reports should be submitted via email to the Public Works Engineering staff who has been working on your project and who issued the Excavation and Grading permit. Questions should be directed to pwecips@CityofPaloAlto.org. 1) Monitoring well levels: At minimum, monitoring well data shall be collected daily for the first two weeks (start-up period) of the 12-week period and weekly thereafter. Status reports should be submitted weekly during start-up period and monthly thereafter. A final report shall be submitted two weeks after pumping ceases. 2) Flow meter readings: At minimum, flow meter data shall be collected daily for the first two weeks (start-up period) of the 12-week period and weekly thereafter. Status reports should be submitted weekly during start-up period and monthly thereafter. A final report shall be submitted two weeks after pumping ceases. 3) Survey data (see subsection IV.C. above): Once dewatering commences, survey data should be collected and reported weekly during the two-week start-up period and monthly thereafter. Note that the information will be made available to the public upon request. G. The Contractor and/or Applicant is required to contact PW Inspection to obtain the final meter readings once groundwater discharge has finished and prior to dismantling any dewatering system components. UPDATED: February 26, 2020 12 V. ADDITIONAL REQUIREMENTS FOR TEMPORARY CONSTRUCTION-RELATED GROUNDWATER DEWATERING IN GROUNDWATER (CONTAMINATED) PLUME AREAS Certain areas in the City have contaminated groundwater plumes due to previous land use. To determine if a site is in or nearby one of these areas, refer to the Attachment 5 figure. Dewatering sites in these areas must be carefully managed to ensure pumped groundwater does not enter the City’s storm drain system nor that it is used by members of the public without being treated. Therefore, Fill Stations are not required at these sites. However, the same flow meter/data logger requirements described in Section IV (B.i.) shall still be followed in order to account for the amount of groundwater pumped from the site. Construction of below ground structures in these areas triggers treatment requirements (in addition to sediment settlement) before discharging to the City’s storm drain system in order to protect the water quality of downstream creeks and the SF Bay. Because of site complexities, specific requirements may vary site by site. Therefore, for any site in or within 500 feet of the edge of a plume, contact the City’s Watershed Protection Group at (650) 329-2122 for guidance and requirements on sampling, treatment and disposal of temporary construction-related groundwater. Sampling groundwater for contaminants prior to initial discharge will be required, and potentially at intervals during dewatering. For all required sampling, the contractor must retain an independent testing firm to collect and process samples. Finally, the applicant should contact the Regional Water Quality Control Board (Water Board) to ensure additional state agency requirements are met. Note that compliance with the City does not imply compliance with the Water Board. Page 1 of 8 Development Review - Department Comments City Department: Planning Staff Contact: Arnold Mammarella (Consulting Architect) Date: 10/3/2019 Project Address/File #: 2353 Webster Street; 18PLN-00339 A. Staff has reviewed the revised plans for the proposed new two-story house filed on August 26, 2019 for compliance with the Palo Alto Single-Family Individual Review Guidelines. The revised plans are the third submittal with this application. Plans were initially filed on October 4, 2018. Following staff level review along with neighborhood input revised plans were filed on June 6, 2019. Additional neighbor comments were provided on those plans as well as staff review comments. The following content summarizes general information and the Individual Review Evaluation as related to meeting the Individual Review Guidelines for the Planning entitlement approval. Some content may be reiterated from the initial evaluation dated 11/13/18 or from staff comments on revised plans. General Information: There are five Individual Review Guidelines: 1. Site planning for driveway, garage and house, 2. Neighborhood compatibility for height, mass, and scale, 3. Resolution of architectural form, massing, and rooflines, 4. Visual character of street facing facades and entries, and 5. Privacy from second floor windows and decks. For approval, proposals need to be consistent with all five guidelines. The review considers the proposal’s response to each guideline’s approval criterion statement and whether the “key points” associated with each guideline have been followed. Guideline illustrations are also used when helpful to make interpretations in the evaluation. Please see the City’s illustrated guideline booklet if you have questions about the intentions of these regulations. Site and Neighborhood Context The property is located on northeast side (Bay side) of Webster Street one property in from the Oregon Avenue intersection. This block of Webster Street extends between Oregon Avenue to North California Avenue with approximately 23 properties along the street for this block (11 on this side of the street and 12 on the southwest side of the street). Most homes along this side of the street on this block appear to be early ranch style homes with sprawling footprints and low pitch gable or hip roof forms. There are also a couple of cottage style homes with moderate to steep roof pitches. In these homes the second floor is set within the roof form so that building walls are 1 story tall except at gables. Across the street there are numerous two-story homes of mostly modest scale with mixed one and two-story massing along with some one-story homes. Homes on the abutting lots and directly across the street are one- story. Generally, this end of the block has a modest scale to the streetscape featuring homes with mostly horizontal proportions, simple low pitch hip and gable rooflines and traditional materials and detailing. The subject lot is 72 feet wide by 110.4 feet deep, which is similar in shape and dimension to other nearby lots along this side of Webster Street. Lots across the street, excepting the larger corner lot, tend to be similar in depth but narrower at 60 feet in width. There are very large lots to the rear on Byron Street. The existing house built in 1926 has a T-shape footprint—wide facing the street and narrow extending to the rear setback line near the 77-inch diameter oak tree. The site plan configuration leaves a large southeast facing yard area as the home’s primary exterior yard space. This site planning pattern is common for one-story homes along this side of the street (i.e. large or usable yards oriented to the southeast side lot line). Some homes have southeast side yards in combination with large rear yards with two homes having the more traditional front-back yard configuration with narrow, not used side yards. The existing front yard setback is 24 feet, which seems similar to adjacent homes. Other than the existing house, the main site feature is the large oak tree situated in the middle of the rear yard setback with a canopy covering most of the rear half of the lot. The tree is close to the rear wall of the existing house and its canopy extends over much of the existing home’s roof. There are also two street trees within a deep street side planting strip and a few smaller trees on the lot. The street edge is a rolled curb. Public Comment Four neighbors wrote to express concerns or objections to the initial proposed design. They include neighbors on directly abutting lots to each side and the lot directly across the street. One of the issues of concern is the basement in terms of dewatering and possible impacts on adjacent structures and trees. The Individual Review Guidelines do not evaluate these impacts directly although site planning does consider existing homes and large trees as part of the context to preserve as well as patterns of site development in the neighborhood. This review would seek input from the project arborist and Public Work’s Urban Forestry as to possible impacts of basement construction and location on existing regulated trees, including how close the house and basement may be placed relative to existing trees. Otherwise, here are key points of neighbor comments: • 2397 Webster Street neighbor: Impact of basement excavation on large tree as well as neighbor’s large cedar tree. Concerns over privacy impacts. Request that proposed home be limited to no basement and a single story. (Staff note: the IR guidelines cannot limit homes to one-story with no basement. Basements, however, may be required to be adjusted to address tree protection issues and the height, mass, size and location of the second floor would be subject to the IR guidelines.) • 2343 Webster Street neighbor: Large “McMansion” style home undermining character of neighborhood that features historic Stedman homes. Second floor roof volume and excavation for basement impacts on Oak tree. Impacts on solar access and privacy to this owner’s side yard garden area that has southern exposure and used for outdoor dining. (Staff note: the IR guidelines do not evaluate solar access/shading but do evaluate a home’s size and mass relative to the neighborhood context and positioning relative to the daylight plane, particularly when next to small or one-story homes). • 2360 Webster Street neighbor: Loss of Stedman house by demolish and change in neighborhood character. Impact of large two-story home on traditional one-story neighborhood. Inadequate on-site parking. Oak tree threatened by project. • 2334 Webster Street neighbor: The large oak tree is monumental in size. The basement should be modified as needed to ensure that the oak tree is not damaged. Comments on the revised plans (filed on June 6, 2019) were provided by neighbors on the directly abutting lots to the left (north), right (south), and across the street. • 2360 Webster Street neighbor: Similar concerns as previously stated. Main comment is house is too massive. • 2397 Webster Street neighbor: Similar concerns as previously stated, but new comments acknowledge the positive esthetic improvements at front of house. Main comments relate to cedar tree not being shown, privacy (balcony and windows) plus not showing this neighbor’s pool, and house still massive and doesn’t belong on this street. • 2343 Webster Street neighbor: Similar concerns as previously stated, but new comments acknowledge some height and mass reduction. Still see house as a monster house larger than any other on the block and intrusive to the neighborhood context with unnecessary use of building volume along with privacy concerns with proposed second floor deck. At the time of this review no additional neighbor comments are available for this third plan set submittal. Summary of Design Changes Topic Initial Design Second Revised Design Front Setback 25’-6” (main wall at both floors) 21’-4” (26’-10” main wall) Daylight Plane Clearance 6” left side, 6” right side 2’-6” left side, 2’-6” right side Total Floor Area 3,133 SF (max. 3,134 SF) 2,935 SF Second Floor Area 1,464 SF (46.7%) 1,310 SF (44.6%) Height (high ridge) 29’-10” 26’-1.5” Height (second floor eave) 19’-0” 18’-0”; 15’-6” (left side/corner) Height (first floor eave) NA 9’-3” Plate Heights 9’-0” 1st floor, 8’-6” 2nd floor Upper floor lowered 1 to 4 feet Roof Pitch 8:12 6:12 Roof Overhang 1 foot 3 foot 1st Floor, 1 foot 2nd Floor Roof Form Hip with curved dormer at front Hip with lower bay windows Massing Boxy with small first floor projections Stepped with lower roof at stair Front Elevation Two-story wall face, entry form in front Roof across front at first floor Side Elevations Windows, deck railing No windows from 2nd floor Wall Material Stucco (smooth texture) Stucco (smooth texture) Roof Material Shingles Slate tile Window Material Not noted Metal (black) Garage/Entry Door Not noted Stained wood vertical board Window Detail deeply recessed windows deeply recessed windows Second Floor Balcony 27’ wide, 10’-4” deep (facing side) 12’ wide, 6’ deep (facing rear) Balcony Railing/Screen Glass to 3’-6” 5’-6” Stucco wall Added Landscape 2 trees front, 3 right side 1 front, 3 right side unspecified G1 — Site Planning: Placement of Driveway, Garage, and House Approval Criterion: The driveway, garage, and house shall be placed and configured to reinforce the neighborhood’s existing site patterns (i.e. Building footprint, configuration and location, setbacks, and yard areas) and the garage and driveway shall be subordinate to the house, landscaping and pedestrian entry as seen from the street. [Guideline Key Points: 1. Minimize the driveway’s presence and paving; 2. Locate the garage to be subordinate to the house; 3. Configure the house footprint to fit the neighborhood pattern; 4. Create landscaped open spaces between homes; 5. Locate the upper floor back from the front facade and/or away from side lot lines when next to one-story homes; and 6. Do not place the second floor so that it emphasizes the garage.] Comments: The proposal places the house closer to the front portion of the lot and generally breaks from neighborhood site planning patterns of sprawling home footprints with multiple yard orientations. Part of the siting and footprint configuration is based on providing distance from the existing rear yard oak tree to limit impacts on the oak tree from house and basement construction. The proposed house and basement sunken patio would set back 46’-8” from the rear lot line, which limits the portion of the house and sunken patio extending under the tree canopy to about 10 feet. A large setback from the tree is likely warranted for tree protection. The second floor is set back from the first floor at the front and in from the first floor at each side to use one story roof lines facing the street and adjacent one-story homes. This second-floor location responds to key point 5 of this guideline for conditions when adjacent to one-story homes. This is also a considerable change from the initial design that had a primary two-story building form with smaller flat roof attachments. The revised massing also results in clearance to the daylight plane on each side of the house considerably greater than the initial design and closer to the expectation shown on guideline illustration 1B. The garage is set back from the front of the house and narrow with a narrow driveway with minimal paving (pavers). This configuration is consistent with the site planning guideline. Existing landscape, including the street trees and large oak tree are retained. Four new trees or large shrubs are shown along the right, side lot line and one new tree is shown along the left side lot line next to the driveway. There would need to be two or three screening trees or a row of tall screening shrubs along the left side lot line between the rear corner of the house and the rear setback line. All landscape would need to be identified by botanical name and planting size. This could be addressed as approval conditions. Overall site planning with the second revised design responds to site and neighborhood conditions, considering protecting the large oak and adapting to the adjacent one-story homes. The site planning response would be sufficient to meet this guideline with the noted need for landscape conditions of approval. G2 — Neighborhood Compatibility for Height, Mass, and Scale Approval Criterion: The scale (perceived size), mass (bulk or volume) and height (vertical profile) of a new house or upper story addition shall be consistent with the existing neighborhood pattern with special attention to adapting to the height and massing of adjacent homes. [Guideline Key Points: 1. Do not overwhelm an adjacent one-story home; 2. Do not accentuate mass and scale with high first floor level relative to grade, tall wall planes, etc.; 3. Minimize height offsets to adjacent neighbors’ roof edges, including adjacent one-story roof edges; 4. Place floor area within roof forms to mitigate mass and scale; 5. Locate smaller forms forward of larger forms to manage perceived height; and 6. Use roof volume rather than wall plate height to achieve interior volume.] Comments: The height, mass, and scale of the proposed house has been reduced substantially from the initial proposal. See summary of changes above. As can be seen in the streetscape elevation the lowered eave and ridge heights, use of one-story forms and elongated roof edges and reductions to the upper floor size all contribute to the proposed home generally fitting with the existing context without a stark juxtaposition in height, mass, or scale to the adjacent homes. The first-floor eave is kept low, so its line adapts well to the adjacent homes. Roof offsets from the first to second floor are deep enough to be meaningful to mass reduction and the stair volume is closer to 1.5 stories tall than a full 2-stories tall, which with its radiused corner benefits the mass and scale relationship to the adjacent home. Overall, the height, mass, and scale of the proposal would be consistent with this guideline with reasonable adaptations provided to blend with the scale of adjacent homes. G3 — Resolution of Architectural Form, Massing, and Rooflines Approval Criterion: The architectural form and massing shall be carefully crafted to reduce visual mass and distinguish the house’s architectural lines or style. Roof profiles shall enhance the form, scale, and proportion of primary and secondary house volumes, while rendering garage and entry forms subordinate in mass and scale to principal building forms. Upper floor additions shall also be balanced and integrated with the existing building. [Guideline Key Points: 1. Adjust floor plans to work for building form; 2. Use the vocabulary of a particular style to compose forms and rooflines; 3. Avoid awkwardly placed additions; 4. Use a few well- proportioned masses to avoid a cluttered appearance of too many elements; and 5. Adjust roof layouts, ridge orientations, eave lines, etc. to reduce mass and enhance form.] Comments: The proposed forms are distinctive in character, including the general hip roof form and smaller secondary forms and radius corner treatment. The neighbor’s initial comment that the house would be a “McMansion” only seemed applicable to its relative size. With the revised design, the volume is significantly reduced, and the forms are more subdued with stepped hip roof lines and deep overhangs used to enhance the massing and scale. Plate heights are kept low at 7-‘6” or 7’-0” on the second floor with roof volume used for room height. Bay windows are used as secondary features and are well spaced. The general roof geometry is organized and not cluttered with unnecessary hips and valleys. Overall the massing would be well balanced while managing mass and bulk. Additionally, the garage would be a subordinate form as required and the entry would be blended into the main facade. The combined features of the design would meet this guideline. G4 — Visual Character of Street Facing Facades and Entries Approval Criterion: Publicly viewed facades shall be composed with a clear and cohesive architectural expression (i.e. The composition and articulation of walls, fenestration, and eave lines), and include visual focal point(s) and supportive use of materials and detailing. Entries shall be consistent with the existing neighborhood pattern and integrated with the home in composition, scale and design character. The carport or garage and garage door shall be consistent with the selected architectural style of the home. [Guideline Key Points: 1. Compose facades to have a unified/cohesive character; 2. Use stylistically consistent windows and proportion and adequate spacing between focal points; 3. Add visual character with architecturally distinctive eaves, window patterns and materials; 4. Do not use monumental entries/ relate entry type and scale to neighborhood patterns; and 5. Design garage openings and door panels to be modest in scale and architecturally consistent with the home.] Comments: Visible facades have an informal, asymmetrical composition but are organized. Hip roof forms with broad horizontal eaves are emphasized in the design. The main street facing windows are large squares divided into quarters. They are set in bays or stacked between floors or above the entry. The windows have deep, pocket style recesses from the wall face to create a shadow line and the black metal frames contrast with the stucco. The stained wood, vertical board garage and entry doors match in material and pattern and contrast well with the stucco. Slate tile roofing and smooth stucco wall surfaces fit the home’s style well and create a simple but balanced material palette. Overall the streetscape façade, material and detailing treatment would be consistent with this guideline. G5 — Placement of Second-Story Windows and Decks for Privacy Approval Criterion: The size, placement and orientation of second story windows and decks shall limit direct sight lines into windows and patios located at the rear and sides of adjacent properties in close proximity. [Guideline Key Points: 1. Gather information on neighbors’ privacy sensitive windows, patios, yards; 2. Mitigate privacy impacts with obscure glazing, high sill windows, permanent architectural screens or by relocating/reorienting windows; 3. Avoid windowless/unarticulated building walls, especially where visible from the street; and 4. Limit upper story deck size and locate decks to result in minimal loss of privacy to side or rear facing property.] Comments: Side facing windows on the second floor have been more or less eliminated from the design, even at the sides of window bays. There is one side facing window high above the stair landing near the front corner of the house that would have little or no privacy impact. At the rear deck, the deck size has been reduced and pulled away from the side lot line, and a 5’-6” stucco wall has been added to limit sideways views. This will significantly reduce impacts. There could be some impact from the deck over the left side lot line to the rear most window facing the side lot line on the 2343 Webster house. Evergreen screening trees or tall shrubs as noted under guideline one should be placed to improve privacy at the diagonal view angle. The impact is not a direct, close view, so landscape as a secondary measure would be suitable. Landscape is also proposed along the right, side lot line per sheet A1.0, but is not specified. This landscape would help screen sideways views from the deck to the 2397 Webster rear yard but needs to be specified on the plans. With the provision of added landscape screening noted here and under guideline one, and identification and approval of the proposed and additional landscape per approval conditions, this proposal would be consistent with the privacy requirements of this guideline. B. The following are recommended conditions for approval of this Individual Review application that shall be shown on building permit plans for approval: 1. On the site plan filed with the building permit show landscape (a row of tall shrubs and/or at least two trees) along the left side lot line starting from near the rear corner of the house and extending to the rear lot setback line. The trees and/or tall shrubs should be evergreen and form a relatively continuous screen with plants that can grow to at 20 feet tall under normal conditions. 2. All proposed trees and tall screening shrubs shown on the site plan shall be indicated with botanical names, and trees noted at a minimum 24-inch box size and shrubs a minimum 15- gallon size and noted to be installed prior to final building inspection at a minimum height of 8 feet. (Note: landscape information may be shown on a landscape plan separately from the site plan, but trees and tall shrubs should still be shown on the site plan graphically with a note referencing the landscape plan for additional information. Corporate Headquarters 1500 North Mantua Street P.O. Box 5193 Kent, OH 4240-5193 330-673-5685 Toll Free 1-800-828-8312 Fax: 330-673-0860 Western Region Office 6005 Capistrano Suite A Atascadero, CA 93422 Direct: 720-667-9236 barry.duncil@davey.com September 22nd, 2019 Gordana Pavlovic Gordana Design Studio, LLC 602 Hawthorne Ave. Palo Alto, CA 94301 650.483.4622 RE: Arborist Report and Tree Protection Plan for Potential Development Impacts at 2353 Webster St. in Palo Alto, California Dear Ms. Pavlovic, Thank you for contracting with Davey Resource Group regarding the above project. In support of your objectives, Davey Resource Group (DRG) is pleased to provide you with the attached report for the planned construction. A DRG International Society of Arboriculture (ISA) Certified Arborist conducted the site inspection of the trees that may be impacted by construction located at the above location in Palo Alto, California on February 3rd, as well as July 31st, 2019. The trees were assessed for location, size, current condition and overall health, as well as identifying critical and structural root zones to assist with tree protection plans. The attached report can be used to make informed decisions about demolition and construction planning, and long-term care of the trees. The survey determined the following: ▪ Twenty-one (21) trees within the potential impacts of the project scope were evaluated. ▪ Fourteen (14) species were identified with the most significant four (4) species listed as: valley oak (Quercus lobata), coast redwood (Sequoia sempervirens), ash (Fraxinus spp.) and southern magnolia (Magnolia grandiflora) ▪ Tree condition ratings ranged from 52% (Fair) to 75% (Good). ▪ It was determined that eighteen (18) trees will require some form of tree protection measures due to proposed site improvements. ▪ Two (2) trees are recommended for removal due to proposed site improvements. ▪ One (1) large valley oak will require extensive monitoring and specific procedures during demolition and construction Please feel free to contact me if you would like more information or have any questions. Sincerely, Emily Spillett Davey Resource Group Certified Arborist #WE-6702A 2353 Webster St., Palo Alto, CA 1 September 2019 ARBORIST REPORT AND TREE PROTECTION PLAN 2353 Webster St. Palo Alto, California August 2019 Revised September 2019 2353 Webster St., Palo Alto, CA 2 September 2019 Arborist Report & Tree Protection Plan for 2353 Webster St. Palo Alto, California Prepared for Gordana Pavlovic Gordana Design Studio, LLC 602 Hawthorne Ave. Palo Alto, CA 94301 August 2019 Revised September 2019 Prepared by Davey Resource Group A Division of The Davey Tree Expert Company 1500 North Mantua Street Kent, OH 44240 Contact: Ruth Williams Western Region Office 6005 Capistrano Suite A Atascadero, CA 93422 Phone: 503.880.3818 E-mail: ruth.williams@davey.com www.daveyresourcegroup.com Notice of Disclaimer Inventory data provided by Davey Resource Group is based on visual recording at the time of inspection. Visual records do not include testing or analysis and do not include aerial or subterranean inspection. Davey Resource Group is not responsible for discovery or identification of hidden or otherwise non-observable risks. Records may not remain accurate after inspection due to variable deterioration of inventoried material and site disturbance. Davey Resource Group provides no warranty with respect to the fitness of the urban forest for any use or purpose whatsoever or for future outcomes of the inventoried trees. 2353 Webster St., Palo Alto, CA 3 September 2019 Table of Contents Summary 4 Introduction 4 Background 4 Assignment 4 Limits of Assignment 5 Purpose and Use of Report 5 Observations 5 Methods 5 Site Observations 5 Tree Observations 5 Analysis and Discussion 5 Conclusion and Recommendations 6 Appendix A – Tree Photograph Summary 8 Appendix B – Tree Inventory and Condition Assessment 11 Appendix C - Tree Protection Plan Drawing 13 2353 Webster St., Palo Alto, CA 4 September 2019 Summary In August 2017, Davey Resource Group (DRG) was contracted by Gordana Pavlovic to explore the possibility of having a new home on the site, address concerns about the impacts the project might have on the trees in proximity and define an area on the lot where the new construction would be possible at 2353 Webster St. in Palo Alto, CA, and what the condition of the trees are in before any design or construction began. In February 2019, DRG was again contracted by Ms. Pavlovic with a revised design as requested by the Planning department, to update the tree assessment and develop a tree protection plan for the existing trees. The revised design shifted the proposed building further away from a large oak to further protect this tree during and after construction. In the meantime, Jason Shirar, Arborist from S.P. McClenahan Co has been retained by Gordana to care and maintain the trees on the property. An International Society of Arboriculture (ISA) Certified Arborist (#WE-9234A) from DRG conducted the evaluation of twenty-one (21) trees that may be impacted by development on February 3rd, 2018. After receiving comments from the City of Palo Alto, DRG sent another arborist to the site to collect additional information about the trees and neighboring trees. The initial assessment did not note a neighboring Deodar Cedar and as there was some concern expressed by comment from a neighbor, on September 22, 2019, the neighboring Deodar Cedar was added to the assessment. The trees were assessed by their location, size, current condition, and overall health. The current site survey was used to plot the critical root zones (CRZ) of the trees to help guide construction options to reduce potential impacts on the trees. Tree condition was primarily fair (6 trees), while fourteen (14) trees were in good condition. It was determined that two (2) of the trees are recommended for removal due to site improvements, and fifteen (15) trees are recommended for varying degrees of tree protection measures as described in this report as well as the Tree Protection Plan. Tree #5 is a large oak that will require monitoring, specific demolition practices, and fencing during and after demolition to best determine the retention potential of this tree. Typical tree protection fence will include Type I and Type II as found in the Palo Alto Tree Technical Manual. Introduction Background Yali Zhou is planning construction at 2353 Webster St. in Palo Alto, CA. In 2017, DRG was contracted to address concerns about the impacts the project might have on the trees in proximity to development and what the condition of the trees are in before any construction began. Gordana Pavlovic requested that DRG provide feedback regarding a proposed residential design at 2353 Webster St., and how that design may be changed or updated to reflect less impact to a large oak specimen. In 2019, Ms. Pavlovic had designed a new building plan in response to DRG’s recommendations to create a larger Tree Protection Zone for the specimen tree. In February 2019, DRG was again contracted to assess the existing trees and provide Tree Protection Plans for the new proposed residence at 2353 Webster. It was requested on behalf of the homeowners that DRG provide an arborist report on the health of the trees, and to identify what tree protection measures may be needed before final plans are submitted to Palo Alto for approval of the new project. Assignment DRG was contracted to conduct a site evaluation of twenty-one (21) existing trees within the limits of the project scope at 2353 Webster St. in Palo Alto, CA and recommend any necessary tree protection measures for the identified trees. The survey included a visual assessment of the trees’ condition, observations of the site conditions and estimating the current critical root zones to assist with upcoming construction planning. 2353 Webster St., Palo Alto, CA 5 September 2019 Limits of Assignment Many factors can limit specific and accurate data when performing evaluations of trees, their conditions, and potential for failure or response to site disturbances. No soil or tissue testing was performed. All observations were made from the ground and no soil excavation to expose roots was performed. The most recent development plans were available to assist in determining potential construction impacts, but these did not include detailed demolition plans. The determinations and recommendations presented here are based on current data and conditions that existed at the time of the evaluation and cannot be a predictor of the ultimate outcome for the evaluated trees in the future. Purpose and Use of Report The purpose of this report is to provide a summary of the evaluations of the trees located at 2353 Webster St., including an assessment of the current condition and health, as well as providing a tree protection plan for all evaluated trees that may be impacted by construction plans. The findings in this report can be used to make informed decisions on design planning and be used to guide long-term care of the trees. This report and detailed tree protection plan can also be submitted to Palo Alto for permitting purposes. Should the development plans be revised, this report and plan must also be revised to remain valid. Observations Methods Only a visual inspection was used to develop the findings, conclusions, and recommendations found in this report. Data collection included measuring the diameter of significant trees at approximately 54 inches above grade (DBH), height estimation, canopy radius estimation, a visual assessment of tree condition, structure, and health, and a photographic record. Numerical values were assigned to grade the attributes of the roots, trunk, branches, and foliage, including structure and health, and to obtain an overall condition rating. No physical inspection of the upper canopy, sounding, root crown excavation, resistance drilling, or other technologies were used in the evaluation of the trees. Site Observations The surveyed site is a residence on a relatively flat location in Palo Alto, CA. Most of the grounds are landscaped. Tree Observations Twenty-one (21) trees were evaluated as part of this report. Four (4) important species were identified: valley oak (Quercus lobata), coast redwood (Sequoia sempervirens), ash (Fraxinus spp.) and southern magnolia (Magnolia grandiflora). Visual assessments determined tree condition ratings ranged from 52-58% (Fair, 6 trees) to 75% (Good, 14 trees). Tree diameters ranged from 8 to 72 inches. Finally, tree heights were estimated to be approximately 14 to 60 feet. Tree photographs are available upon request and a complete Tree Inventory and Condition Assessment can be found in Appendix A. Analysis and Discussion The surveyed trees are of a mixed size (age) class. Seven (7) trees are on the property under construction, while ten (10) trees are on adjacent property and four (4) are street trees. Lower tree condition ratings were based on trunk structure or damage, visible decay, minor dieback, poor structure, or observed stress. Tree #5 is an older tree that be considered mature and is located very close to the existing house. It is likely that many of the tree roots grow along the house and at the base of the of the existing footers, and this should be noted for the demolition phase. 2353 Webster St., Palo Alto, CA 6 September 2019 The diameters of the surveyed trees were used to illustrate the potential critical root zone (CRZ) of each tree. The CRZ is the area of soil around a tree where the minimum amount of roots considered critical to the health of the tree are located. The CRZ was calculated by multiplying the DBH by 0.83 feet (10 inches). For instance, tree #1 has a DBH of 12 inches and a calculated CRZ of 10 feet (12 x 0.83). This distance may extend beyond the tree canopy dripline and is normally considered the tree protection zone (TPZ). Tree protection fencing is normally installed to protect the CRZ, but at a minimum should be installed at the dripline. Like the CRZ, the structural root zone (SRZ) was also calculated using a commonly accepted method established by Dr. Kim Coder in Construction Damage Assessments: Trees and Sites.1 In this method, the root plate size (i.e. pedestal roots, zone of rapid taper area, and roots under compression) and limit of disruption based upon tree DBH is considered as a minimum distance that any disruption should occur during construction. Significant risk of catastrophic tree failure exists if structural roots within this given radius are destroyed or severely damaged. The SRZ is the area minimal or no disturbance should occur without arborist supervision. Both the CRZ and SRZ for the surveyed trees are illustrated in Appendix C. Conclusion and Recommendations Tree #5 will require extensive planning, additional budget and thorough communication with supervising arborist and the contractor. As the structural root zone may be impacted during demolition, it is critical that all demolition techniques minimize impacts in this area. Currently, the CRZ for this tree is estimated at approximately 11,000 square feet. Based on the proposed demolition that will occur, we estimate that 1850 square feet (17% percent) of this CRZ will be removed. Minor impact to the remaining CRZ area is anticipated from proposed demolition, restoration and utility connections. It is recommended that existing structure demolition is completed by hand from within the building footprint. No Equipment outside the footprint and an arborist should approve the equipment inside the footprint. All demolition and restoration work within the CRZs of retained trees shall be completed by hand and under arborist supervision. Existing soil moisture should be mimicked throughout demolition and construction. Subsequent protection measures should be considered through all stages of demolition and construction. This may include: tree growth regulator (tree #5); root protection matting and 4-6” inches of mulch; installing trunk wrap; using hand tools and light machinery when working in the Tree Protection Zone; watering, wetting and covering roots that may be exposed to sunlight and dry conditions; potentially leaving some parts of the foundation and existing footings in place as to minimally disturb existing roots. Additionally, all fill soils around tree #5 shall mimic existing native soils and shall not be over-compacted, as determined by a soil specialist. To facilitate the demolition of the existing building foundation, the tree protection should be temporarily moved to the outside of the demolition area once the Arborist has arrived onsite to document any tree impacts. Root protection matting and mulch may be necessary to minimize soil compaction and impacts to the existing roots within the Tree Protection Zone, as determined by the supervising arborist. When demolition is complete, soil should be immediately backfilled and incorporated with the native soils using pneumatic air tools, and finally the area should be mulched. Then the tree protection fence should be replaced and remain throughout the duration of construction. All work performed in the TPZ of the trees to be retained should be supervised by a Certified Arborist. Temporary root protection is recommended by using a 4-6” layer of mulch. In addition, the proposed electric 1 Dr. Kim D. Coder, University of Georgia July 1996 2353 Webster St., Palo Alto, CA 7 September 2019 utility connection through the TPZ must be excavated by air tools or by hand, or be directional bored, to avoid unnecessary root damage. The utility work will require arborist oversight. Tree protection measures should be in place before any site work occurs, including: ● Installation of 6’ min high tree protection fencing ● Mulching according to the tree protection plans ● Posting signage on the tree protection fencing ● Pre-work meetings and site visits with the design team ● Ensuring that contractor and subcontractors know when arborist supervision is required This helps to ensure that everyone is on-board towards the same goal- retaining and preserving the twenty- one (21) trees while maintaining a safe residential setting. Following construction, the trees should be monitored monthly by a Certified Arborist to ensure the condition and structure of the tree do not decline over time or become hazardous. If a change in state is observed, the Arborist should recommend mitigation measures, which may include, but are not limited to, increased monitoring, pruning, general plant health care, or removal. 2353 Webster St., Palo Alto, CA 8 September 2019 Appendix A – Tree Photograph Summary Additional photos upon request Image 1. Trees #1-3 along Webster St. 2353 Webster St., Palo Alto, CA 9 September 2019 Image 2. Tree #5 behind house 2353 Webster St., Palo Alto, CA 10 September 2019 Image 3. Tree #5 2353 Webster St., Palo Alto, CA 11 September 2019 Image 4. Tree #5 2353 Webster St., Palo Alto, CA 12 September 2019 Appendix B – Tree Inventory and Condition Assessment Attached 2353 Webster St., Palo Alto, CA 13 September 2019 Appendix C - Tree Protection Plan Drawing Attached Wetland 5300 Wellington Branch Drive • Suite 100 Gainesville, Virginia 20155 Phone: 703-679-5600 • Fax: 703-679-5601 www.wetlandstudies.com Studies and Solutions, Inc.R Ci t y o f P a l o A l t o Tr e e P r o t e c t i o n - I t ’ s P a r t o f t h e P l a n ! Ma k e s u r e y o u r c r e w s a n d s u b s d o t h e j o b r i g h t ! Fe n c e d e n c l o s u r e s a r o u n d t r e e s a r e e s s e n t i a l t o p r o t e c t t h e m b y k e e p i n g t h e f o l i a g e c a n o p y a n d b r a n c h i n g s t r u c t u r e c l e a r f r o m c on t a c t b y e q u i p m e n t , m a t e r i a l s a n d a c t i v i t i e s , pr e s e r v i n g r o o t s a n d s o i l c o n d i t i o n s i n a n i n t a c t a n d n o n - c o m p a c t e d s t a t e , a n d i d e n t i f y i n g t h e T r e e P r o t e c t i o n Z o n e ( T P Z ) i n w h ic h n o s o i l d i s t u r b a n c e i s p e r m i t t e d a n d a c t i v i t i e s a r e r e s t r i c t e d , un l e s s o t h e r w i s e a p p r o v e d . An a p p o v e d t r e e p r o t e c t i o n r e p o r t m u s t b e a d d e d t o t h i s s h e e t w h e n p r o j e c t a c t i v i t y o c c u r s w i t h i n t h e T P Z o f a r e g u l a t e d t r e e . Fo r d e t a i l e d i n f o r m a t i o n o n P a l o A l t o ' s r e g u l a t e d t r e e s a n d p r o t e c t i o n d u r i n g d e v e l o p m e n t , r e v i e w t h e Ci t y T r e e T e c h n i c a l M a n u a l ( T T M ) f o u n d a t w w w . c i t y o f p a l o a l t o . o r g / t r e e s / . T- 1 Sp e c i a l T r e e P r o t e c t i o n I n s t r u c t i o n S h e e t Ci t y o f P a l o A l t o Al l o t h e r t r e e - r e l a t e d r e p o r t s s h a l l b e a d d e d t o t h e s p a c e p r o v i d e d o n t h i s s h e e t ( a d d i n g a s n e e d e d ) In c l u d e t h i s s h e e t ( s ) o n P r o j e c t S h e e t I n d e x o r L e g e n d P a g e . A c o p y o f T - 1 c a n b e d o w n l o a d e d a t w w w . c i t y o f p a l o a l t o . o r g / a r b / f o r m s ZHOU RESIDENCE 2353 WEBSTER ST PALO ALTO, CALIFORNIA WSSI PROJECT # DRGWEST234 T- 1   ST R E E T T R E E P R O T E C T I O N S P E C I F I C A T I O N S - S E C T I O N 3 1 - 31 - 1 Gen e r a l - T r e e p r o t e c t i o n h a s t h r e e p r i m a r y f u n c t i o n s , 1 ) t o k e e p t h e f o l i a g e c a n o p y a n d b r a n c h i n g s t r u c t u r e c l e a r fro m c o n t a c t b y e q u i p m e n t , m a t e r i a l s a n d a c t i v i t i e s ; 2 ) t o p r e s e r v e r o o t s a n d s o i l c o n d i t i o n s i n a n i n t a c t a n d no n - c o m p a c t e d s t a t e a n d 3 ) t o i d e n t i f y t h e T r e e P r o t e c t i o n Z o n e ( T P Z ) i n w h i c h n o s o i l d i s t u r b a n c e i s p e r m i t t e d a n d act i v i t i e s a r e r e s t r i c t e d , u n l e s s o t h e r w i s e a p p r o v e d . 31- 2 R e f e r e n c e D o c u m e n t s a. D e t a i l 5 0 5 - I l l u s t r a t i o n o f s i t u a t i o n s d e s c r i b e d b e l o w . b. T r e e T e c h n i c a l M a n u a l (w w w . c i t y o f p a l o a l t o . o r g / t r e e s / ) 1. Tre n c h i n g R e s t r i c t i o n Z o n e s ( S e c t i o n 2 . 2 0 ( C ) ) 2. Arb o r i s t R e p o r t i n g P r o t o c o l ( S e c t i o n 6 . 3 0 ) 3. Sit e P l a n R e q u i r e m e n t s ( S e c t i o n 6 . 3 5 ) 31- 3 M a t e r i a l s a. T h e T r e e P r o t e c t i o n Z o n e ( T P Z ) : A r e s t r i c t e d a r e a a r o u n d t h e b a s e o f t h e t r e e w i t h a r a d i u s o f 1 0 t i m e s the d i a m e t e r o f t h e t r e e ' s t r u n k o r t e n f e e t , w h i c h e v e r i s g r e a t e r , e n c l o s e d b y f e n c i n g . b. T y p e I T r e e P r o t e c t i o n : Th e f e n c e s h a l l e n c l o s e t h e e n t i r e a r e a u n d e r t h e c a n o p y d r i p l i n e o r T P Z (w h i c h e v e r i s g r e a t e r ) o f t h e t r e e ( s ) t o b e p r o t e c t e d t h r o u g h o u t t h e l i f e o f t h e c o n s t r u c t i o n p r o j e c t . I n s o m e pa r k i n g a r e a s , i f f e n c i n g i s l o c a t e d o n p a v i n g o r c o n c r e t e t h a t w i l l n o t b e d e m o l i s h e d , t h e n t h e p o s t s m a y be s u p p o r t e d b y a n a p p r o p r i a t e g r a d e l e v e l c o n c r e t e b a s e , i f a p p r o v e d . c. T y p e I I T r e e P r o t e c t i o n : Fo r t r e e s s i t u a t e d w i t h i n a p l a n t i n g s t r i p , o n l y t h e p l a n t i n g s t r i p a n d y a r d s i d e of t h e T P Z s h a l l b e e n c l o s e d w i t h t h e r e q u i r e d c h a i n l i n k p r o t e c t i v e f e n c i n g i n o r d e r t o k e e p t h e s i d e w a l k an d s t r e e t o p e n f o r p u b l i c u s e . d. T y p e I I I T r e e P r o t e c t i o n : Tr e e s s i t u a t e d i n a t r e e w e l l o r s i d e w a l k p l a n t e r p i t , s h a l l b e w r a p p e d w i t h 2-i n c h e s o f o r a n g e p l a s t i c f e n c i n g f r o m t h e g r o u n d t o t h e f i r s t b r a n c h a n d o v e r l a i d w i t h 2 - i n c h t h i c k woo d e n s l a t s b o u n d s e c u r e l y ( s l a t s s h a l l n o t b e a l l o w e d t o d i g i n t o t h e b a r k ) . D u r i n g i n s t a l l a t i o n o f t h e pla s t i c f e n c i n g , c a u t i o n s h a l l b e u s e d t o a v o i d d a m a g i n g a n y b r a n c h e s . M a j o r s c a f f o l d l i m b s m a y a l s o req u i r e p l a s t i c f e n c i n g a s d i r e c t e d b y t h e C i t y A r b o r i s t . e. S i z e , t y p e a n d a r e a t o b e f e n c e d : All t r e e s t o b e p r e s e r v e d s h a l l b e p r o t e c t e d w i t h s i x ( 6 ' ) f o o t h i g h c h a i n lin k f e n c e s . F e n c e s a r e t o b e m o u n t e d o n t w o - i n c h d i a m e t e r g a l v a n i z e d i r o n p o s t s , d r i v e n i n t o t h e g r o u n d to a d e p t h o f a t l e a s t 2 - f e e t a t n o m o r e t h a n 1 0 - f o o t s p a c i n g . f. ' W a r n i n g ' s i g n s : A w a r n i n g s i g n s h a l l b e p r o m i n e n t l y d i s p l a y e d o n e a c h f e n c e a t 2 0 - f o o t i n t e r v a l s . T h e sig n s h a l l b e m i n i m u m 8 . 5 - i n c h e s x 1 1 - i n c h e s a n d c l e a r l y s t a t e : “ W A R N I N G - T r e e P r o t e c t i o n Zon e - T h i s f e n c e s h a l l n o t b e r e m o v e d a n d i s s u b j e c t t o a f i n e a c c o r d i n g t o P A M C S e c t i o n 8 . 1 0 . 1 1 0 . ” 31- 4 E x e c u t i o n a. D u r a t i o n : Tre e f e n c i n g s h a l l b e e r e c t e d b e f o r e d e m o l i t i o n , g r a d i n g o r c o n s t r u c t i o n b e g i n s a n d r e m a i n i n pla c e u n t i l f i n a l i n s p e c t i o n o f t h e p r o j e c t , e x c e p t f o r w o r k s p e c i f i c a l l y a l l o w e d i n t h e T P Z . W o r k o r s o i l dis t u r b a n c e i n t h e T P Z r e q u i r e s a p p r o v a l b y t h e p r o j e c t a r b o r i s t o r C i t y A r b o r i s t ( i n t h e c a s e o f w o r k aro u n d S t r e e t T r e e s ) . E x c a v a t i o n s w i t h i n t h e p u b l i c R O W r e q u i r e a S t r e e t W o r k P e r m i t f r o m P u b l i c Wor k s . b. D u r i n g c o n s t r u c t i o n 1. All n e i g h b o r s ' t r e e s t h a t o v e r h a n g t h e p r o j e c t s i t e s h a l l b e p r o t e c t e d f r o m i m p a c t o f a n y k i n d . 2. Th e a p p l i c a n t s h a l l b e r e s p o n s i b l e f o r t h e r e p a i r o r r e p l a c e m e n t p l u s p e n a l t y o f a n y p u b l i c l y o w n e d tre e s t h a t a r e d a m a g e d d u r i n g t h e c o u r s e o f c o n s t r u c t i o n , p u r s u a n t t o S e c t i o n 8 . 0 4 . 0 7 0 o f t h e P a l o Alto M u n i c i p a l C o d e . 3. Th e f o l l o w i n g t r e e p r e s e r v a t i o n m e a s u r e s a p p l y t o a l l t r e e s t o b e r e t a i n e d : a. No s t o r a g e o f m a t e r i a l , t o p s o i l , v e h i c l e s o r e q u i p m e n t s h a l l b e p e r m i t t e d w i t h i n t h e T P Z . b. The g r o u n d u n d e r a n d a r o u n d t h e t r e e c a n o p y a r e a s h a l l n o t b e a l t e r e d . c. Tre e s t o b e r e t a i n e d s h a l l b e i r r i g a t e d , a e r a t e d a n d m a i n t a i n e d a s n e c e s s a r y t o e n s u r e s u r v i v a l . EN D O F S E C T I O N Wetland 5300 Wellington Branch Drive • Suite 100 Gainesville, Virginia 20155 Phone: 703-679-5600 • Fax: 703-679-5601 www.wetlandstudies.com Studies and Solutions, Inc.R Ci t y o f P a l o A l t o Tr e e P r o t e c t i o n - I t ’ s P a r t o f t h e P l a n ! Ma k e s u r e y o u r c r e w s a n d s u b s d o t h e j o b r i g h t ! T- 2 Sp e c i a l T r e e P r o t e c t i o n I n s t r u c t i o n S h e e t Ci t y o f P a l o A l t o Al l o t h e r t r e e - r e l a t e d r e p o r t s s h a l l b e a d d e d t o t h e s p a c e p r o v i d e d o n t h i s s h e e t ( a d d i n g a s n e e d e d ) In c l u d e t h i s s h e e t ( s ) o n P r o j e c t S h e e t I n d e x o r L e g e n d P a g e . A c o p y o f T - 1 c a n b e d o w n l o a d e d a t w w w . c i t y o f p a l o a l t o . o r g / a r b / f o r m s ZHOU RESIDENCE 2353 WEBSTER ST PALO ALTO, CALIFORNIA WSSI PROJECT # DRGWEST234 T- 2   Wetland 5300 Wellington Branch Drive • Suite 100 Gainesville, Virginia 20155 Phone: 703-679-5600 • Fax: 703-679-5601 www.wetlandstudies.com Studies and Solutions, Inc.R T- 3 Sp e c i a l T r e e P r o t e c t i o n I n s t r u c t i o n S h e e t Ci t y o f P a l o A l t o Al l o t h e r t r e e - r e l a t e d r e p o r t s s h a l l b e a d d e d t o t h e s p a c e p r o v i d e d o n t h i s s h e e t ( a d d i n g a s n e e d e d ) In c l u d e t h i s s h e e t ( s ) o n P r o j e c t S h e e t I n d e x o r L e g e n d P a g e . A c o p y o f T - 1 c a n b e d o w n l o a d e d a t w w w . c i t y o f p a l o a l t o . o r g / a r b / f o r m s ZHOU RESIDENCE 2353 WEBSTER ST PALO ALTO, CALIFORNIA WSSI PROJECT # DRGWEST234 T- 3   Wetland 5300 Wellington Branch Drive • Suite 100 Gainesville, Virginia 20155 Phone: 703-679-5600 • Fax: 703-679-5601 www.wetlandstudies.com Studies and Solutions, Inc.R T- 4 Sp e c i a l T r e e P r o t e c t i o n I n s t r u c t i o n S h e e t Ci t y o f P a l o A l t o Al l o t h e r t r e e - r e l a t e d r e p o r t s s h a l l b e a d d e d t o t h e s p a c e p r o v i d e d o n t h i s s h e e t ( a d d i n g a s n e e d e d ) In c l u d e t h i s s h e e t ( s ) o n P r o j e c t S h e e t I n d e x o r L e g e n d P a g e . A c o p y o f T - 1 c a n b e d o w n l o a d e d a t w w w . c i t y o f p a l o a l t o . o r g / a r b / f o r m s ZHOU RESIDENCE 2353 WEBSTER ST PALO ALTO, CALIFORNIA WSSI PROJECT # DRGWEST234 T- 4   Attachment H Project Plans Hardcopies of project plans are provided to the Chief Planning Official. These plans are available to the public online and/or by visiting the Planning and Development Services Department on the 5th floor of City Hall at 250 Hamilton Avenue. Directions to review Project plans online: 1.Go to: https://paloalto.buildingeye.com/planning 2.Search for “2353 Webster Street” and open record by clicking on the green dot 3.Review the record details on the left side and open the “more details” option 4.Use the “Records Info” drop down menu and select “Attachments” 5.Open the attachment named “2353 Webster Approved Plans” and dated 12/05/19 to review the tentatively approved plan set. City of Palo Alto (ID # 11332) City Council Staff Report Report Type: Action Items Meeting Date: 5/18/2020 City of Palo Alto Page 1 Summary Title: Tobacco Retail Permit 4.64 Ordinance Revisions Title: Adoption of Amendments to the City of Palo Alto Tobacco Retail Ordinance (PAMC Chapter 4.64) to Further Restrict Electronic Cigarette Products and Flavored Tobacco Products, Direct Staff to Discuss Amending the Tobacco Retail Permit (TRP) Agreement With the County, and Updates to Council's Previous Questions on Reducing Youth Tobacco use(Continued From May 4, 2020) From: City Manager Lead Department: Public Works Recommendation Per Council direction from the December 9, 2019 Council Meeting, staff recommends that Council: 1.Adopt amendments to the Tobacco Retail Permit (TRP) Ordinance (Municipal Code Chapter 4.64) (Attachment A) which will further restrict sales of flavored and electronic tobacco products, exempt adult-only stores (those stores that provide service to people ages 21 and over), and require new, stricter retailer requirements to further limit under- age 21 access to tobacco retailers; 2.Direct Staff to discuss the exemption provision for adult-only stores with Santa Clara County officials. The exemption has been proposed by Palo Alto staff to avoid severe economic impacts to five small businesses. The goals of the discussion with the County would be to modify the tobacco sales agreement to accommodate the exemption, and to maximize the use of County resources for the Permitting and Enforcement program for regulating Tobacco Retail Sales; and 3.Review staff responses to Council’s December 9, 2019 meeting questions about how to further reduce youth access to tobacco and vaping products. Executive Summary At the December 9, 2019 City Council Meeting, Council directed Staff to return with a revised City of Palo Alto Page 2 Tobacco Retail Permit Ordinance that mirrors the latest revisions to the County Ordinance for the unincorporated areas of the County, with as few exemptions as possible. In researching the potential impacts of this Ordinance to Palo Alto businesses, staff learned that adopting the County Ordinance in its entirety would result in the likely closure of five of the seven adult-only stores in Palo Alto (there are also 15 non-adult tobacco retailers in Palo Alto, but these stores would not see a significant impact to their business). To address this potential major impact to the five small businesses, staff has included an exemption provision in the proposed Ordinance. This provision is not currently supported by the County and could result in the City having to run its own cost-recovery permit program for the 22 stores in Palo Alto that sell tobacco. If Council approves the staff recommendation, staff will engage the County in an effort to avoid or minimize the impact of this outcome. Background The December 9, 2019, Council Colleagues’ Memo discussed community and Councilmember concerns about the rise in youth vaping. As recently reported within the California Student Tobacco Survey, e-cigarette use has continued to increase, particularly among young people. In Santa Clara County, a third of all high school students have tried an e-cigarette and one in eight currently uses them. In addition, e-cigarette use is now associated with a wave of dangerous, life-threatening illnesses. As of October 22, 2019, 1,604 cases of lung injury associated with the use of e-cigarette or vaping products had been reported to the Centers for Disease Control and Prevention (CDC), and there had been 34 confirmed deaths due to e-cigarette or vaping associated lung injury. On December 9, 2019, Council directed staff to return to Council with: 1. An ordinance prohibiting the sale and distribution of all electronic cigarettes and flavored tobacco products, in alignment with the County of Santa Clara’s recent approach, with as few exemptions as possible; 2. Avenues identified to support legislation making it harder for minors to successfully order electronic cigarette products online (e.g. needing a signature of a 21-year-old at delivery); 3. A yearly update on the enforcement activities of the existing Tobacco Retail Permit Ordinance; 4. Suggested funding as needed after a Community Meeting in January 2109; 5. Investigative results of disincentives and/or fines for vaping in public; 6. Work done with Palo Alto Unified School District (PAUSD) through the City/School Liaison Committee to reduce youth vaping; and City of Palo Alto Page 3 7. Recommendation of appropriate disposal methods and education for electronic cigarettes. Discussion The following information provides an update and information for action items identified at the December 9, 2109 Council Meeting. 1. Revisions to Municipal Code Chapter 4.64 Tobacco Retail Permit Ordinance Per Council direction, this staff report includes proposed revisions to Palo Alto’s TRP Ordinance (Attachment A). These revisions mirror the recently revised Santa Clara County Department of Environmental Health Ordinance which now prohibits the sale of flavored tobacco products and electronic cigarette devices, but includes an exemption from these new prohibitions for adult-only stores to avoid the permanent store closure that would likely occur for five adult-only tobacco retailers that would be most impacted by the revised TRP. The effective date is July 1, 2020. The current Palo Alto TRP Ordinance adopted in 2018 includes the following: a. Prohibits pharmacies and vending machine sales of tobacco products; b. Restricts new retailers from receiving a TRP if they are located within 500 feet of another tobacco retailer or within 1,000 feet of a school; c. Prohibits the sale of flavored tobacco products except at “adult-only stores” (stores that prohibit anyone under the age of 21 from entering unless they are with an adult); d. Limits storefront advertising of tobacco products; e. Has a 24-month violation look back period, which is the span of time over which any additional violations are considered to be repeat violations. The City Council approved a City-County agreement in 2016 (staff report) that stipulates that the Santa Clara County Department of Environmental Health will administer the TRP process for Palo Alto retailers, and that the City of Palo Alto Police Department (PAPD) will provide annual youth decoy (undercover) checks at tobacco retailers to confirm that no sales to people under age 21 are conducted. This agreement helps ensure compliance with all federal, state, and local laws and uniform standards for tobacco and electronic cigarette product sales, and more frequent permitting inspections than are provided by state and federal regulators. Adopting the identical Santa Clara County Department of Environmental Health TRP revisions approved by the County on November 19, 2019 would add further restrictions which would: a. Prohibit the sale and distribution of electronic cigarette products at all retailers. E-cigarette products include e-cigarettes, e-cigars, e-pipes, vape pens, e-hookahs, and any flavored or unflavored liquid or substance containing nicotine, whether sold separately or sold in combination with any device or delivery system; b. Prohibit the sale of all flavored tobacco products at all retailers; City of Palo Alto Page 4 c. Revise the “look-back” violation period from 24 months to 60 months. The look-back period is the span of time over which additional violations are considered to be repeat violations. Staff has developed the recommended Ordinance, in place of adopting the County’s November 2019 Ordinance revision in its entirety, given the County Ordinance’s potential impact on five small businesses. This is based on feedback from store owners of Mac’s Smoke Shop, Raw Smoke Shop, Red Brick Café & Hookah Nites Lounge, Smoke and More, and Smokes and Vapes. According to these stores, 60 percent or more of their revenue is from sales of flavored tobacco and/or electronic cigarette products to people over age 21. This level of impact to retailers has not been seen in the unincorporated areas of the County where the County Ordinance is in effect (only one store has been impacted in a significant way), nor in the Town of Los Gatos, which also maintains a TRP partnership with the County (no Los Gatos stores were impacted by the Ordinance adoption, which was largely adopted as a preventative measure). To address this major impact to the five small businesses, staff recommends that Council 1) Adopt amendments to the Tobacco Retail Permit (TRP) Ordinance (Municipal Code Chapter 4.64) (Attachment A), with an exemption for adult-only stores; and 2) Direct Staff to discuss the exemption provision with Santa Clara County officials. The goal of the discussion with the County is to modify the current tobacco retailer permit agreement with the County accordingly, and to maximize the use of County resources for the permitting and enforcement program for regulating tobacco retail sales. The exemption for adult-only stores would include three new retailer requirements to further limit underage sales of tobacco products or electronic cigarette products: a. People under age 21 could not enter an adult-only tobacco retailer, even if accompanied by an adult; b. Store staff at adult-only tobacco retailers must be located close enough to the store entrance to check identification before any member of the public enters; c. If any retailer is caught selling tobacco to a minor under 21 twice within 24 months, the permit for that retailer would be terminated, and the retailer would be suspended from applying for a new permit for one year. Reinstating a permit would be considered a “new” permit (not a renewal) and therefore the retailer would lose any grandfathered exemptions allowed under the Ordinance (e.g., school proximity, selling electronic cigarette products or flavored tobacco). This recommendation, combined with new legislation and regulations that have gone into effect since the December 9, 2019 meeting (discussed in Section 2 of this report), would provide a significant reduction in teen access to vaping, and would allow the existing over age-21 stores to remain open for those over age-21 customers that choose to smoke or vape. All of these stores have complied with the requirement for no underage-21 sales of tobacco products during recent undercover youth decoy checks (discussed in Section 3 below). A comparison of Ordinance options is summarized in Attachment B–Comparison of City of Palo Alto Page 5 Current Palo Alto Tobacco Retail Ordinance, Santa Clara County Ordinance, and Proposed Palo Alto Ordinance. If the County opts to not revise the TRP agreement with the City, staff would assume the enforcement responsibilities for the 22 tobacco retailers. Administrative fees assessed to Palo Alto tobacco retailers for enforcement services would be considered (likely similar to those currently assessed by the County). 2. Legislation that will make it more difficult for minors to order electronic cigarette products online: As of January 1, 2020, a new law (via SB 39, Hill1) requires online tobacco sellers or distributors to place tobacco products in a conspicuously marked container and obtain the signature of a person 21 years of age or older before delivering the tobacco product. SB39 requires: a. Online retailers to verify that the purchaser or recipient of the product is 21 years of age or older by matching the name, address, and date of birth provided by the customer to information contained in a database of individuals whose age has been verified to be 21; b. If the seller cannot verify that the purchasing or recipient is 21 year or older, a valid government identification will need to be provided verifying that the billing address is the same on the check or credit card; c. The words “tobacco product” may be printed in the purchaser’s credit card statement so that potentially a parent would be flagged about the purchase; Additionally, a new United States Food and Drug Administration regulation became effective February 6, 2020 which prohibits all retailers from selling flavored cartridge-based e-cigarette products. However, this regulation exempts menthol and tobacco-flavored e- liquids, tank-based systems, and single-use electronic cigarettes).2 The City has also supported several State bills that could help reduce youth access to tobacco products. Letters are listed publicly at : www.cityofpaloalto.org/gov/city_information/intergovernmental_affairs.asp. Current legislation under consideration includes: a. SB 793 (Hill) as currently drafted would prohibit the sale of flavored tobacco products and electronic cigarette products3 state-wide at all retailers; 1Senate Bill No. 39 California Legislative Information, leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200SB39. Accessed April 2, 2020 2 McGinley, L. (2020, February 5) Flavored e-cigarette pod ban starts Thursday: What it means for vapers, kids and parents. Retrieved from https://www.washingtonpost.com/health/2020/02/05/flavored-e-cigarette-pod-ban- starts-thursday-what-it-means-vapers/. 3 http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200SB793. Accessed April 3, 2020. 4http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200SB424, Accessed April 3, 2020. City of Palo Alto Page 6 b. SB 424 (Jackson)–would ban the sale of single-use tobacco products, including single-use filters, single-use plastic devices needed for manipulation of tobacco products, and single-use electronic cigarettes4. This bill would allow the sale of multi-use tobacco products, so long as those products are recyclable, or are collected for take-back by manufacturers of the product. This bill also targets the litter and hazardous waste associated with e-cigarette products. This bill is a carryover from 2019. Both of these bills are on hold because of an imposed COVID-19 California legislature recess, but activity may resume in May 2020. If the above bills were to become law, they would collectively further reduce youth access to vaping throughout the state by decreasing access to both flavored traditional tobacco products, and also single-use electronic cigarettes and vaping products. 3. Enforcement Summary of the Tobacco Retail Permit Ordinance. Currently, the Santa Clara County Department of Health regulates the Palo Alto tobacco retailers. This function includes in-store visits to ensure that businesses comply with TRP requirements. In addition, the PAPD is required to confirm that stores only sell tobacco products to people ages 21 or older. There are currently 22 tobacco retailers in Palo Alto: 15 retailers (mostly gas stations and liquor stores) and seven adult-only (over age-21) stores which include: Raw Smoke Shop, Red Brick Café & Hookah Nites Lounge, Smoke and More, Smokes and Vapes, Mac’s Smoke Shop, Hemingway, and La Bodeguita del Medio. Santa Clara County Department of Health Permit Compliance Checks and Retailer Density The Santa Clara County Department of Environmental Health conducted the first TRP inspections to each retailer in March 2019. There was a high degree of compliance at Palo Alto retailers with most of the multiple Ordinance requirements (e.g., maintaining a permit, compliance with flavored tobacco restrictions, signage, licenses posted, and other requirements). Follow-up letters and visits were conducted to businesses that were out of compliance with any of the Ordinance provisions and particularly to ensure that stores not exempted from the flavored tobacco restriction continued to cease sales of those products. Since implementing the TRP there has been a decrease of seven tobacco retailers in total. In 2017, there were 29 tobacco retailers in the City whereas now there are 22 retailers. This is because: • four businesses were restricted from selling tobacco products because they had a licensed pharmacist on-site (three Walgreens stores and one Safeway); • three businesses did not apply for the TRP and are no longer engaging in the sale of tobacco products (Antonio’s Nut House, Palo Alto Hills Golf and Country Club, and Driftwood Deli and Market); • one location is no longer in business (Cigar House); • one adult-only store went into business (Raw Smoke Shop); City of Palo Alto Page 7 • two attempts were made to apply for a permit, but due to the density restriction, only one store– Raw Smoke Shop– was eligible to receive a permit. In regard to the number of over age-21 stores, there were six over age-21 stores when the TRP Ordinance was adopted in 2017. There are now seven over age-21 retailers because, as discussed above, Raw Smoke Shop opened before the first Tobacco Retail Permit Ordinance went into effect on July 1, 2018. Palo Alto Police Department Undercover Investigations In January 2020, the PAPD completed the annual undercover investigations which are a requirement of the TRP. A Police Department staffing shortage in 2019 prohibited the undercover investigations from occurring that year. The Police Department’s undercover investigations showed that at 85% of retailers that were visited (17 of 20; two retailers were not visited for reasons outlined below), clerks properly checked the identification of the undercover Police Department representative. Upon learning that she was under the age of 21, they refused to sell tobacco products to her. Police had given the undercover representative instructions to present her actual identification if asked, and to respond with her truthful age if asked. Police issued citations to clerks from the three retailers who did not properly check her identification and sold tobacco products to her. As these three criminal cases move through the court process, the Palo Alto Police Department is working with the Santa Clara County Department of Environmental Health to take administrative action against the retailers themselves. Administrative sanctions could include fines and a permit suspension for up to 30 days for the first offense. The Police Department did not visit two retailers during the undercover investigations due to an inability to safely monitor the undercover representative, solely as a result of the physical layout of the establishments. However, since both retailers deal primarily with cigars (a tobacco product not as sought after by young adults as vaping products or cigarettes), the Police Department felt that the need to safely monitor the undercover representative outweighed the need to conduct the compliance check. The Police Department will explore alternate means to conduct compliance checks at these two retailers in the future. 4. Community Funding Needed to Reduce Vaping A forum focused on youth vaping was planned by a committee of the Healthy City Healthy Community workgroup. Palo Alto Medical Foundation funded and hosted the event. The event was held on January 23, 2020 with the goal of bringing community leaders and experts together to share information, facilitate discussion on best practices, and identify gaps and opportunities in local and regional efforts. A keynote was delivered by April Roeseler, Chief of the California Tobacco Control Program of the California Department of Public Health. The forum was attended by approximately 65 people representing youth, City of Palo Alto Page 8 parents, public and private schools, youth-serving organizations, faith-based organizations, health care, law enforcement, local and regional government, and the media. The Healthy City Healthy Community committee asked attendees to complete a post-event survey and asked the question, “If funding were available, where would you prioritize use of funds with respect to youth vaping?” Of the responses, education and prevention in schools was ranked the highest followed by (in order of highest to lowest): treatment for youth addicted to nicotine; connection of anxiety and mental health to vaping; education of middle school students; local data collection on youth vaping; and understanding and elimination of vape waste in the environment. The Healthy City Healthy Community group conducted an initial review of the survey results at its March 4, 2020 meeting and agreed that increased youth education and prevention beginning at the middle school level or younger, could have the greatest impact. Additionally, the group discussed that peer-to-peer education may have greater success and so suggested that increased funding to the ThinkFund (formerly Bryant Street Garage Fund) to fund youth-led initiatives would be the best use of resources. 5. Additional Disincentives to Reduce Vaping in Public Palo Alto Municipal Code Chapter 9.14, Smoking and Tobacco Regulations, already prohibits smoking and e-cigarette use (includes vaping) in public spaces and multi-family dwellings, e.g., all parks, open spaces and Palo Alto facilities; outdoor and indoor commercial dining areas, entryways, public events, recreation areas, service areas, commercial indoor areas, outdoor service areas (bus stops, ATMs, and ticket lines), employment places, construction worksites, the Downtown Business District, and 25 feet from any door (or window) to any enclosed area. Exceptions to this ordinance are allowed if a designated smoking area is established by a shopping/commercial/multi-family property area that is at least 25 feet away from any windows or doors to enclosed areas and that provides receptacles to control litter. Fines range from $250 to $500 for repeat violations in public areas. Currently, PAPD is not resourced to cite smoking in multi-family dwellings, but the ordinance allows landlords to find tenants in material breach of their lease for smoking anywhere on the property except in designated areas and gives other tenants the right to enforce. Public signs are already posted in most of these areas that are owned by the City of Palo Alto and specify that both smoking and e-cigarette/vaping use are prohibited. In addition: a. Free no-smoking signs are available to multi-family units upon request (see cityofpaloalto.org/smoking for signage options); b. The City and Santa Clara County Department of Environmental Health are currently working together to supply businesses with new “No Smoking, No e-cigarette/vaping” signs that will be available to businesses upon request. Staff will provide outreach about sign availability. City of Palo Alto Page 9 It is important to note that as of 2016, the California legislature decriminalized the purchase or possession of any tobacco products or paraphernalia (this includes e-cigarettes or vaping devices) by minors under the age of 18. The law now also prohibits businesses from selling tobacco products or paraphernalia to anyone under the age of 21, or under the age of 18 for active military personnel with valid identification (Palo Alto’s TRP prohibits sales to anyone under the age of 21 regardless of military service standing). Since the law change now places the focus on the retailer rather than the minor, the police are no longer able to cite minors for possessing tobacco or smoking devices. For youth in possession of tobacco or smoking devices on a school campus, PAPD’s standard approach is to allow these incidents to be handled administratively as a school matter. PAPD’s School Resource Officers (SROs) report that during the 2018-19 and 2019-2020 academic years, they only encountered approximately 15 devices in possession of students. Approximately 75% of those were from students at the high schools, while the rest came from students at the middle schools. The SROs report that school administration officials usually confiscate the device and may not choose to notify police since it is handled administratively and there are no longer any criminal ramifications to the student due to the 2016 change in state law as described above. If the SROs do confiscate the device, it is either given to the parents or used as a teaching aid in educational programs. The SROs report that in speaking with students, students are most often buying vaping devices and supplies online with their parents’ credit cards, and do not buy them at Palo Alto retailers. This may be more difficult now with the passage of SB39 which became effective January 1, 2020, as discussed previously in this report. 6. Palo Alto Unified School District (PAUSD) and City/School Liaison Committee effort to Reduce Youth Vaping The City/School Liaison Committee meets once monthly. The committee consists of two PAUSD Board members and two Palo Alto City Council members. The committee discusses issues of mutual interest between the two organizations. As part of the effort to reduce youth vaping, the committee is available to hear updates related to the other initiatives mentioned in this report and participate in other efforts related to this topic. The committee reports their discussions back to the PAUSD Board and Palo Alto City Council. 7. Appropriate Disposal Methods and Education for Electronic Cigarettes Hazardous waste from e-cigarette and vaping products includes nickel cadmium batteries, lithium batteries, and electronic components. Nicotine itself, found in both e-liquids and traditional tobacco products, is also an acutely hazardous product. These products’ designation as hazardous wastes cause real-world problems when they are not properly managed at end-of-life: “filters” of traditional cigarettes are plastic and create one of the most prevalent sources of litter and water pollution in local creeks; lithium City of Palo Alto Page 10 batteries used in many e-cigarette products are documented to have caused explosions during use and during disposal at waste management facilities, and clean-up costs required by state and local public agencies are becoming increasingly documented. The California Department of Transportation, for example, estimates that it costs $41 million annually to clean up cigarettes on roadways. (California Product Stewardship Council, calpsc.org/products, January 31, 2020). Ultimately, an industry-funded product-design and disposal model (also known as “Extended Producer Responsibility”) is needed to relieve the burden of public agencies funding the cleanup and disposal of tobacco and e-cigarette products. This is one goal of SB 424, discussed previously in this report. However, until an industry-funded product design and disposal model is established, the City will accept e-cigarettes, vaping products, and tobacco products at weekly Household Hazardous Waste events and plans to provide outreach about this service in 2020. Timeline Should Council adopt the proposed revisions to the Tobacco Retail Ordinance, the Ordinance would become effective July 1, 2020, which aligns with the County’s Ordinance effective start date. Resource Impact If County of Santa Clara continues its enforcement oversight for Palo Alto tobacco retailers, there will be no significant resource impact to the City beyond the staff time already committeed to develop and mail outreach materials for businesses, visit tobacco retailers, and update the current TRP with the new stricter standards. Should the County be unwilling to revise the TRP agreement with the City, staff would assume the enforcement responsibilities for the 22 tobacco retailers. Staff anticipates this would require a relatively minor use of staff time, with costs ultimately recoverable through administrative fees. Policy Implications This action is consistent with existing City policies. Stakeholder Engagement Businesses were sent a letter on February 19, 2020 outlining potential ordinance changes (Attachment C–Business Outreach for Proposed 2020 TRP Update). The letter included a list of Frequently Asked Questions and a summary of each of Palo Alto’s two smoking ordinance requirements. A duplicate packet of information was hand-delivered to each business on Feburary 26 so that retailers could ask questions, and staff could ensure delivery of the letter and supporting information. Businesses who received notices about proposed Ordinance changes were: 1. Hemingway, 480 University Avenue, Palo Alto (over age-21 store) 2. Mac's Smoke Shop, 534 Emerson Street (over age-21 store) 3. Raw Smoke Shop, 265 California Avenue (over age-21 store) City of Palo Alto Page 11 4. Red Brick Café & Hooka Nites Lounge, 235 University Ave (over age-21 store) 5. Smoke & More, 3896 El Camino Real (over age-21 store) 6. Smokes & Vapes, 3491 El Camino Real (over age-21 store) 7. La Bodeguita del Medio, 463 S California Avenue (maintains an over age-21 smoking lounge) 8. 7-Eleven 2366-18584E, 401 Waverley Street 9. 7-Eleven, 708 Colorado Avenue 10. B&P Florist & Plants, 3880 El Camino Real 11. Barron Park Shell, 3601 El Camino Real 12. Embarcadero Shell, 1161 Embarcadero Rd 13. Ermies Liquor, 3870 El Camino Real 14. Jim Davis Valero, 3972 El Camino Real 15. Palo Alto Arco, 699 San Antonio Road 16. Palo Alto Chevron, 3897 El Camino Real 17. Palo Alto Fine Wine and Spirits, 3163 Middlefield Rd 18. Palo Alto Shell, 2200 El Camino Real 19. Palo Alto Unocal, 835 San Antonio Road 20. Smog Pros Arco, 840 San Antonio Road 21. Valero Corner Store, 705 San Antonio Road 22. Valero of Palo Alto, 1963 El Camino Real The initial outreach fully mirrored the County of Santa Clara approach, including prohibiting the sale and distribution of all electronic cigarettes and flavored tobacco products at adult-only retailers. It did not include the exemption for adult-only retailers or the proposed three new requirements to further limit underage sales of tobacco products or electronic cigarette products at those retailers. Staff will notify the adult-only retailers of these changes to the proposed Ordinance in advance of Council’s consideration of the Ordinance. Following Council’s approval of the Ordinance, additional outreach will be conducted via residential and commercial utility bill inserts, a press release, and social media channels. Environmental Review This proposed Ordinance would not be subject to environmental review under the California Environmental Quality Act (CEQA) because it does not cause a direct physical change in the environment or a reasonably foreseeable indirect change in the physical environment. Attachments: • Attachment A - Ordinance Amending Chapter 4.64 (Permits for Retailers of Tobacco Products) • Attachment B- Summary of TRP Requirements and Alternatives 4 22 20a • Attachment C - Business Outreach for Proposed 2020 TRP Update Not Yet Approved  1 20200422_ts_24_206 Ordinance No. _____  Ordinance of the Council of the City of Palo Alto Amending Chapter 4.64  (“Permits for Retailers of Tobacco Products”) Of Title 4 (Business Licenses and  Regulations).   The Council of the City of Palo Alto ORDAINS as follows:   SECTION 1.  Findings and Declarations.  The City Council finds and declares as follows:  A. Electronic cigarettes, also known as e‐cigarettes, e‐vaporizers, or electronic nicotine  delivery systems, are battery‐operated devices that people use to inhale an aerosol that  typically contains nicotine.  In addition to nicotine, the aerosol from e‐cigarettes may  include up to 31 other components, including formaldehyde, acetaldehyde, glycidol,  acrolein, acetol, and diacetyl.  Several of these compounds are likely carcinogens, and  acrolein is a powerful irritant.1  These products can resemble traditional tobacco  cigarettes (cig‐a‐likes), cigars, or pipes, or even everyday items like pens or USB memory  sticks.2  The pervasive use of these and other related Electronic Cigarette Products has  given rise to a massive and multi‐faceted public health crisis.  B. The Surgeon General has declared the use of e‐cigarettes among youth an “epidemic.”   There is an extensive and rapidly growing body of evidence supporting that  characterization.  For instance:  i.E‐cigarette companies use marketing strategies to target youth.  In 2014, 18 million (7 out of 10) middle and high school students were exposed to e‐ cigarette ads.3 ii.E‐cigarettes are marketed in a variety of flavors that appeal to youth, including gummy bear, birthday cake, cotton candy, and fruit punch. iii.While youth use of combustible cigarettes has decreased dramatically, e‐ cigarette use—or “vaping”—among middle and high school students increased 1  Centers for Disease Control and Prevention.  Cigarette Use Among Youth and Young Adults: A Report of the  Surgeon General (2016). https://www.cdc.gov/tobacco/data_statistics/sgr/e‐cigarettes/index.htm.  2  National Institute on Drug Abuse.  Electronic Cigarettes (E‐cigarettes) (2019).  https://www.drugabuse.gov/publications/drugfacts/electronic‐cigarettes‐e‐cigarettes; Breland A, Soule E, Lopez A,  Ramôa C, El‐Hellani A, Eissenberg T. Electronic cigarettes: what are they and what do they do? Ann N Y Acad Sci.  2017;1394(1):5‐30. doi:10.1111/nyas.12977.  3  Centers for Disease Control and Prevention.  E‐cigarette Ads and Youth (2017).  https://www.cdc.gov/vitalsigns/ecigarette‐ads/index.html.  Attachment A Not Yet Approved  2 20200422_ts_24_206 by 78 percent between 2017 and 2018, with over 4 million kids currently using e‐ cigarettes in 2018.4    iv. The proportion of current e‐cigarette users in high school who reported use on  20 days or more in the past 30‐day period increased from 20 percent in 2017 to  27.7 percent in 2018.5    v. In 2019, the national prevalence of e‐cigarette use during the previous 30 days  was more than 1 in 4 students in the 12th grade, more than 1 in 5 in the 10th  grade, and more than 1 in 11 in the 8th grade.6    vi. Use of e‐cigarettes among undergraduate college students increased from 4.9  percent to 10.1 percent between 2017 and 2018.7    vii. There was a 46.2 percent increase in current e‐cigarette use between 2017 and  2018 among young adults.8    viii. Adolescents obtain e‐cigarettes from a variety of sources.  The most common  sources are: purchasing from a store or online (31.1 percent); buying from  another person (16.3 percent); and giving someone money to purchase for them  (15.0 percent).9     C. Nearly 1 in 3 Santa Clara County teens—31.6 percent—report that they have used an e‐ cigarette at least once.  Most teens obtained their e‐cigarettes from “social sources,”  4  Cullen KA, Ambrose BK, Gentzke AS, Apelberg BJ, Jamal A, King BA. Use of Electronic Cigarettes and Any Tobacco  Product Among Middle and High School Students—United States, 2011–2018. MMWR Morb Mortal Wkly Rep.  2018;67(45):1276‐1277. doi:10.15585/mmwr.mm6745a5.    5  Cullen KA, Ambrose BK, Gentzke AS, Apelberg BJ, Jamal A, King BA. Use of Electronic Cigarettes and Any Tobacco  Product Among Middle and High School Students—United States, 2011–2018. MMWR Morb Mortal Wkly Rep.  2018;67(45):1276‐1277. doi:10.15585/mmwr.mm6745a5.     6  Miech R, Johnston L, O’Malley PM, Bachman JG, Patrick ME. Trends in Adolescent Vaping, 2017–2019. N Engl J  Med. September 2019:NEJMc1910739. doi:10.1056/NEJMc1910739.    7  Compare American College Health Association‐National College Health Assessment II: Undergraduate Student  Reference Group Executive Summary Spring 2018. Silver Spring, MD: American College Health Association with  American College Health Association‐National College Health Assessment II: Reference Group Undergraduate  Executive Summary Spring 2017. Hanover, MD: American College Health Association.  8  Dai H, Leventhal AM. Prevalence of e‐Cigarette Use Among Adults in the United States, 2014‐2018. JAMA.  September 2019. doi:10.1001/jama.2019.15331.    9  Pepper JK, Coats EM, Nonnemaker JM, Loomis BR. How Do Adolescents Get Their E‐Cigarettes and Other  Electronic Vaping Devices? Am J Health Promot. 2019;33(3):420‐429. doi:10.1177/0890117118790366.  Not Yet Approved  3 20200422_ts_24_206 while around 45 percent reported purchasing their own e‐cigarettes (with over a  quarter of this group saying they buy them directly from a local store).10    D. E‐cigarettes have severe adverse health effects for both youth and adults.    i. According to the Surgeon General, “[m]ost e‐cigarettes contain nicotine—the  addictive drug in regular cigarettes, cigars, and other tobacco products. Nicotine  exposure during adolescence can harm the developing brain—which continues  to develop until about age 25. Nicotine exposure during adolescence can impact  learning, memory, and attention.  Using nicotine in adolescence can also  increase risk for future addiction to other drugs.  In addition to nicotine, the  aerosol that users inhale and exhale from e‐cigarettes can potentially expose  both themselves and bystanders to other harmful substances, including heavy  metals, volatile organic compounds, and ultrafine particles that can be inhaled  deeply into the lungs.”11    ii. E‐cigarette use can also play a role in adolescent social maladjustment, including  poor learning and academic performance, increased aggressive and impulsive  behavior, poor sleep quality, attention deficits, impaired memory, cognition, and  increased depression and suicidal ideation.12    iii. Daily e‐cigarette use is associated with increased risk of irreversible  cardiovascular and lung disease through the inhalation of harmful chemicals.13    iv. Secondhand emissions from e‐cigarettes are also dangerous because they  contain “nicotine; ultrafine particles; flavorings such as diacetyl, a chemical  linked to serious lung disease; volatile organic compounds such as benzene,  which is found in car exhaust; and heavy metals, such as nickel, tin, and lead.”14    10  Zhu S‐H, Lee J, Zhuang YL, Branden K, Cole A, Wolfson T, Gamst A (2019). Tobacco use among high school  students in Santa Clara County: Findings from the 2017‐18 California Student Tobacco Survey. San Diego,  California: Center for Research and Intervention in Tobacco Control (CRITC), University of California, San Diego.    11  Surgeon General’s Advisory on E‐cigarette Use Among Youth (2008).  https://e‐ cigarettes.surgeongeneral.gov/documents/surgeon‐generals‐advisory‐on‐e‐cigarette‐use‐among‐youth‐2018.pdf.    12  Tobore TO. On the potential harmful effects of E‐Cigarettes (EC) on the developing brain: The relationship  between vaping‐induced oxidative stress and adolescent/young adults social maladjustment. J Adolesc. 2019;  76:202‐209. doi:10.1016/j.adolescence.2019.09.004.    13  American Lung Association.  The Impact of E‐Cigarettes on the Lung (2011).  https://www.lung.org/stop‐ smoking/smoking‐facts/impact‐of‐e‐cigarettes‐on‐lung.html; Bein K, Leikauf GD. Acrolein ‐ a pulmonary hazard.  Mol Nutr Food Res 55(9):1342‐60. doi: 10.1002/mnfr.201100279.    14  American Lung Association.  The Impact of E‐Cigarettes on the Lung (2011).  https://www.lung.org/stop‐ smoking/smoking‐facts/impact‐of‐e‐cigarettes‐on‐lung.html.  Not Yet Approved  4 20200422_ts_24_206 v. E‐cigarette use is dangerous for pregnant women and is a fetal risk factor.  It is  associated with an increased risk of smallness‐for‐gestational‐age.15    E. In addition to these negative long‐term health effects, e‐cigarette use is now associated  with a wave of dangerous, life‐threatening illnesses.     i. As of October 15, 2019, 1,479 cases of acute lung injury associated with the use  of e‐cigarette or vaping products in 49 states, the District of Columbia, and 1 U.S.  territory have been reported to the Centers for Disease Control and Prevention  (CDC).  Thirty‐three deaths have been confirmed in 24 states.16    ii. Since the CDC’s August 30, 2019 Official Health Advisory,17 there have been two  reported cases of lung injury associated with e‐cigarettes in Santa Clara County.   One of these cases was in an adolescent, and both individuals required  hospitalization.     F. Other risks and injuries are attributable to the proliferation of e‐cigarettes:     i. E‐cigarettes present a poison risk for children. From 2013 to 2017, an estimated  4,745 e‐liquid poisoning cases among children under age five were treated in  U.S. hospital emergency departments.18    ii. E‐cigarettes present a risk of burns and other injuries, usually from  malfunctioning batteries.  From 2015 to 2017, there were an estimated 2,035 e‐ cigarette explosion and burn injuries reported in U.S. hospital emergency  rooms.19     15  Cardenas V, Cen R, Clemens M, et al. Use of Electronic Nicotine Delivery Systems (ENDS) by pregnant women I:  Risk of small‐for‐gestational‐age birth. Tob Induc Dis. 2019;17(May). doi:10.18332/tid/106089    16  Centers for Disease Control and Prevention. Outbreak of Lung Injury Associated with E‐cigarette Use, or Vaping.  October (2019). https://www.cdc.gov/tobacco/basic_information/e‐cigarettes/severe‐lung‐disease.html.    17  Centers for Disease Control and Prevention Official Health Advisory.  Severe Pulmonary Disease Associated with  Using E‐Cigarette Products (Aug. 30, 2019).  https://emergency.cdc.gov/han/han00421.asp.   18  Chang JT, Wang B, Chang CM, Ambrose BK. National estimates of poisoning events related to liquid nicotine in  young children treated in US hospital emergency departments, 2013–2017. Inj Epidemiol. 2019;6(1):10.  doi:10.1186/s40621‐019‐0188‐9.    19  Rossheim ME, Livingston MD, Soule EK, Zeraye HA, Thombs DL. Electronic cigarette explosion and burn injuries,  US Emergency Departments 2015‐2017. Tob Control. 2019;28(4):472‐474. doi:10.1136/tobaccocontrol‐2018‐ 054518.  Not Yet Approved  5 20200422_ts_24_206 G. While the e‐cigarette industry claims that its products help people quit smoking  combustible cigarettes, the evidence shows that e‐cigarette use is actually associated  with increased risk of cigarette initiation, particularly among low‐risk youths.20    i. Use of e‐cigarettes was most common among smokers, and dual users had the  highest prevalence of respiratory symptoms.  On a population level, this  indicates that the present use of e‐cigarettes does not adequately serve as a  smoking cessation tool.21    ii. E‐cigarettes are not commonly used as a quit tool among college students, but  rather as a secondary source of nicotine, most commonly in current smokers.22    iii. Of adults and young adults over 18 who use e‐cigarettes, around 63 percent  typically use non‐tobacco flavored e‐cigarettes, while over a third typically use  tobacco‐flavored or unflavored e‐cigarettes.23    H. Open e‐cigarette systems are customizable by consumers and often allow for potential  “unorthodox” use of the product.  These modifications include altering mechanical  components and replacing liquid cartridges with dangerous off‐market or illegal  substances.24  Customization is one of the most popular social media topics for e‐ cigarettes.25        //  20  Berry KM, Fetterman JL, Benjamin EJ, et al. Association of Electronic Cigarette Use With Subsequent Initiation of  Tobacco Cigarettes in US Youths. JAMA Netw Open. Published online February 01, 2019;2(2):e187794.  doi:10.1001/jamanetworkopen.2018.7794.    21  Hedman L, Backman H, Stridsman C, et al. Association of Electronic Cigarette Use With Smoking Habits,  Demographic Factors, and Respiratory Symptoms. JAMA Netw Open. 2018;1(3):e180789.  doi:10.1001/jamanetworkopen.2018.0789.    22  Martinasek MP, Bowersock A, Wheldon CW. Patterns, Perception and Behavior of Electronic Nicotine Delivery  Systems Use and Multiple Product Use Among Young Adults. Respir Care. 2018;63(7):913‐919.  doi:10.4187/respcare.06001.    23  Landry RL, Groom AL, Vu T‐HT, et al. The role of flavors in vaping initiation and satisfaction among U.S. adults.  Addict Behav. 2019;99:106077. doi:10.1016/j.addbeh.2019.106077.   24  Guy MC, Helt J, Palafox S, et al. Orthodox and Unorthodox Uses of Electronic Cigarettes: A Surveillance of  YouTube Video Content. Nicotine Tob Res. 2019;21(10):1378‐1384. doi:10.1093/ntr/nty132.    25  Lee A, Hart J, Sears C, Walker K, Siu A, Smith C. A picture is worth a thousand words: Electronic cigarette content  on Instagram and Pinterest. Tob Prev Cessat. 2017;3(July). doi:10.18332/tpc/74709.  Not Yet Approved  6 20200422_ts_24_206  SECTION 2.  Chapter 4.64 (Permits for Retailers of Tobacco Products) of Title 4  (Business Licenses and Regulations) is hereby amended and restated as follows:      CHAPTER 4.64.  PERMITS FOR RETAILERS OF TOBACCO PRODUCTS    4.64.010.  Intent.     This Chapter is adopted to:     (1) Ensure compliance with the business standards and practices of the County;     (2)        Encourage responsible retailing of Tobacco Products;     (3)        Discourage violations of laws related to Tobacco Products, especially those that  prohibit or discourage the Sale or Distribution of Tobacco Products to individuals  under 21;     (4) Respond to a new wave of addiction to Electronic Cigarette Products;     (5) Reduce vulnerability to unexplained illnesses associated with Electronic Cigarette  Products; and    (6)   Protect the public health and welfare.     This Chapter does not expand or reduce the degree to which the acts regulated by federal or  state law are criminally proscribed or alter the penalties provided by such laws.     4.64.020.  Definitions.     For the purposes of this Chapter, the following definitions shall apply:     (a) Arm’s Length Transaction means a Sale in good faith and for valuable consideration that  reflects the fair market value in the open market between two or more informed and  willing parties, neither of which is under any compulsion to participate in the  transaction. A Sale between relatives, related companies or partners, or a Sale for which  a significant purpose is avoiding the effect of the violations of this Chapter is not an  Arm’s Length Transaction.     (b) Department means any department of the City of Palo Alto or County of Santa Clara  designated by the City Manager to enforce or administer this Chapter, including the  County of Santa Clara’s Department of Environmental Health and any agency or Person  designated by the Director of the Department of Environmental Health to enforce or  administer the provisions of this Chapter.   Not Yet Approved  7 20200422_ts_24_206   (c) Distribute or Distribution means the transfer, by any Person other than a common  carrier, of a Tobacco Product to another Person for Sale or personal consumption.      (d) Electronic Cigarette Products means any of the following products:    (1) Any device or delivery system that can be used to deliver nicotine in aerosolized  or vaporized form, including, but not limited to, an e‐cigarette, e‐cigar, e‐pipe,  vape pen, or e‐hookah.     (2) Any component, part, or accessory of such a device or delivery system that is  used during its operation.      (3) Any flavored or unflavored liquid or substance containing nicotine, whether Sold  separately or Sold in combination with any device or delivery system that could  be used to deliver nicotine in aerosolized or vaporized form.     (4) Any product for use in an electronic nicotine device or delivery system whether  or not it contains nicotine or tobacco or is derived from nicotine or tobacco.    (5) Electronic Cigarette Products shall not include any battery, battery charger,  carrying case, or other accessory not used in the operation of the device if Sold  separately.  Electronic Cigarette Products shall not include any product that has  been approved by the United States Food and Drug Administration for Sale as a  tobacco cessation product or for other therapeutic purposes where that product  is marketed and Sold solely for such approved use.  See 21 U.S.C. § 387(a).  As  used in this subsection, nicotine does not include any food products as that term  is defined pursuant to Section 6359 of the California Revenue and Taxation Code.    (e) Ownership means possession of a ten percent or greater interest in the stock, assets, or  income of a business, other than a security interest for the repayment of  debt.  Notwithstanding any other definition in this Code, an Owner means a Person who  possesses Ownership.      (f) Permit means a valid permit issued by the Department to a Person to act as a Retailer.    (g) Retailer means any Person who Sells or Distributes Tobacco Products for any form of  consideration.  Retailing shall mean the doing of any of these actions.  This definition is  without regard to the quantity of Tobacco Products Sold or Distributed.     (h) School means a public or private elementary, middle, junior high, or high school.     (i) Sale and Sold includes any sale, exchange, barter or offer for sale.    Not Yet Approved  8 20200422_ts_24_206 (j) Tobacco Product means (unless specifically noted elsewhere) any product subject to  Subchapter IX (21 U.S.C. § 387 et seq. (“Subchapter IX”)) of the Federal Food, Drug, and  Cosmetic Act.  (See 21 U.S.C. § 387a(b) (products subject to Subchapter IX); 21 C.F.R. §§  1100.1‐1100.3 (tobacco products subject to Subchapter IX).)  Products subject to  Subchapter IX include, but are not limited to, cigarettes, cigarette tobacco, roll‐your‐ own tobacco, smokeless tobacco, cigars, pipe tobacco, waterpipe tobacco, and  Electronic Cigarette Products.  Products that are not subject to Subchapter IX include  accessories of Tobacco Products, such as, but not limited to, ashtrays, spittoons, and  conventional matches and lighters that solely provide an external heat source to initiate  but not maintain combustion of a Tobacco Product.      4.64.030.  Requirements and prohibitions.       (a) Permit required. It shall be unlawful for any Person to act as a Retailer without first  obtaining and maintaining a Permit pursuant to this Chapter for each location at which  Retailing occurs.     (b) Lawful business operation. It shall be a violation of this Chapter for any Retailer to  violate any local, state, or federal law applicable to Tobacco Products or the Retailing of  such Tobacco Products.     (c) Display of Permit. Each Permit shall be prominently displayed in a publicly visible place  at the location identified in the Permit.     (d) Notice of minimum age for purchase of Tobacco Products. Retailers shall post  conspicuously, at each point of purchase, a notice stating that selling Tobacco Products  to anyone under 21 years of age is illegal and subject to penalties. Such notice shall be  subject to the approval of the Public Health Department.     (e) Positive identification required. No Retailer shall Sell or Distribute a Tobacco Product to  another individual who appears to be under 30 years of age without first examining the  individual’s identification to confirm that the individual is at least the minimum age  required under state law to purchase and possess the Tobacco Product.     (f) Minimum age for individuals selling Tobacco Products. No individual who is younger  than the minimum age established by State law for the purchase or possession of  Tobacco Products shall engage in Retailing.    (g) False and misleading advertising prohibited. A Retailer without a Permit:     (1)      Shall keep all Tobacco Products out of public view.     (2)      Shall not display any advertisement relating to Tobacco Products that promotes  the Sale or Distribution of such products from the Retailer’s location or that  Not Yet Approved  9 20200422_ts_24_206 could lead a reasonable consumer to believe that Tobacco Products can be  obtained at that location.     (h) Limitation on storefront advertising. No more than 15 percent of the square footage of  the windows and clear doors of a physical storefront used for Retailing Tobacco  Products shall bear advertising or signs of any sort, and all advertising and signage shall  be placed and maintained in a manner that ensures that law enforcement personnel  have a clear and unobstructed view of the interior of the premises, including the area in  which the cash registers are maintained, from the exterior public sidewalk or entrance  to the premises. However, this latter requirement of this subsection (h) shall not apply  to an establishment where there are no windows or clear doors, or where existing  windows are located only at a height that precludes a view of the interior of the  premises by an individual standing outside the premises.     (i) Flavored Tobacco Products.      (1)      Except as permitted in paragraph (3) of this subsection (i), no Retailer shall Sell a  Tobacco Product containing, as a constituent or additive, an artificial or natural  flavor or aroma (other than tobacco) or an herb or spice, including but not limited  to strawberry, grape, orange, clove, cinnamon, pineapple, vanilla, coconut,  licorice, cocoa, chocolate, cherry, mint, menthol, or coffee, that is a characterizing  flavor or aroma of the Tobacco Product, smoke, or vapor produced by the  Tobacco Product.       (2)      A Tobacco Product shall be subject to a rebuttable presumption that the product  is prohibited by paragraph (1) of this subsection if:     (i)  The product’s manufacturer or any other Person associated with the  manufacture or Sale of Tobacco Products makes or disseminates public  statements or claims to the effect that the product has or produces a  characterizing flavor or aroma, other than tobacco; or     (ii)  The product’s label, labeling, or packaging includes a statement or  claim—including any text and/or images used to communicate  information—that the product has or produces a characterizing flavor or  aroma, other than tobacco.    (3)      Except as provided in Paragraph (4) of this subsection (i), Paragraph (1) of this  subsection (i) shall not apply to any Retailer that meets all the following criteria:     (i)       Primarily sells Tobacco Products;     (ii)      Generates more than 60 percent of its gross revenues annually from the  Sale of Tobacco Products;   Not Yet Approved  10 20200422_ts_24_206   (iii)      Does not permit any individual under 21 years of age to be present or  enter the premises at any time;     (iv)       Does not Sell alcoholic beverages or food for consumption on the  premises; and     (v)        Posts a sign outside the retail location that clearly, sufficiently, and  conspicuously informs the public that individuals under 21 years of age  are prohibited from entering the premises;    (vi) Posts a staff person adjacent to all public entrances to the premises and  verifies an individual’s age upon entering using the same standards as  section 4.63.030(e) (Positive identification required).  The staff person  may be located inside or outside the entrance.      (4) No Retailer that is issued a new Permit after June 30, 2020 shall Sell or Distribute  flavored Tobacco Products under paragraph (3) of this subsection (i) after Permit  issuance.  No Retailer that receives a Permit renewal after June 30, 2020 shall  Sell or Distribute flavored Tobacco Products under paragraph (3) of this  subsection (i) after Permit renewal.  Regardless of the date of Permit issuance or  renewal, no Retailer shall Sell or Distribute flavored Tobacco Products after June  30, 2020.     (i) This Paragraph (4) of subsection (i) shall not apply to any Retailer of  Tobacco Products (as such term was defined in the predecessor  Ordinance No. 5418) who the Department determines meets the criteria  of section 4.63.030(i)(3) of Ordinance No. 5418 as of June 30, 2020, and  provided that the Retailer obtains a permit prior to July 1, 2020 pursuant  to sections 4.64.050 and 4.64.060, timely renews its permit pursuant to  section 4.64.070(b), and has not had its permit terminated pursuant to  section 4.64.130(g).    (j) Vending machines prohibited. No Tobacco Product shall be Sold or Distributed to the  public from a vending machine or appliance, or any other coin or token operated  mechanical device designed or used for vending purposes, including, but not limited to,  machines or devices that use remote control locking mechanisms.     (k) Prohibition on Sale or Distribution of Tobacco Products to individuals under 21. No  Retailer shall Sell or Distribute any Tobacco Product to any individual who is under  21 years of age.    (l) Prohibition on Sale or Distribution of Electronic Cigarette Products. No Retailer that is  issued a new Permit after June 30, 2020 shall Sell or Distribute Electronic Cigarette  Not Yet Approved  11 20200422_ts_24_206 Products after Permit issuance.  No Retailer that receives a Permit renewal after June  30, 2020 shall Sell or Distribute Electronic Cigarette Products after Permit renewal.   Regardless of the date of Permit issuance or renewal, no Retailer shall Sell or Distribute  Electronic Cigarette Products after June 30, 2020.      (i)  This subsection (l) shall not apply to any Retailer of Tobacco Products (as such  term was defined in the predecessor Ordinance No. 5418) who the Department  determines meets the criteria of section 4.63.030(i)(3) of Ordinance No. 5418 as  of June 30, 2020, and provided that the Retailer obtains a permit prior to July 1,  2020 pursuant to sections 4.64.050 and 4.64.060, timely renews its permit  pursuant to section 4.64.070(b), and has not had its permit terminated pursuant  to section 4.64.130(g).    4.64.040.  Eligibility requirements for a Permit.       (a)  No Permit may be issued to authorize Retailing at or from other than a fixed location.  For example, Retailing by Persons on foot or from vehicles is prohibited.     (b)  No Permit may be issued to authorize Retailing at a temporary or recurring temporary  event. For example, Retailing at flea markets and farmers’ markets is prohibited.     (c)  No Permit may be issued to authorize Retailing at any location where the profession of  pharmacy is practiced by a pharmacist licensed by the State in accordance with the  Business and Professions Code and where prescription drugs are offered for Sale.    (d)  No Permit may be issued to authorize Retailing at any location within 1,000 feet of a  School, as measured by a straight line between any point along the property line of any  parcel on which a School is located and any point along the perimeter of the Permit  applicant’s proposed business location; provided, however, that the prohibition  contained in this subsection (d) shall not apply to the following:     (1) Any Retailer of Tobacco Products (as such term was defined in the predecessor  Ordinance No. 5418) operating lawfully on June 30, 2018 provided that the  Retailer obtains a permit prior to July 1, 2020 pursuant to sections 4.64.050 and  4.64.060, and timely renews its permit pursuant to section 4.64.070(b);     (2) Any Retailer of electronic smoking devices (as such term was defined in the  predecessor Ordinance No. 5418) operating lawfully on June 30, 2018 provided  that the Retailer obtains a permit prior to July 1, 2020 pursuant to sections  4.64.050 and 4.64.060, and timely renews its permit pursuant to section  4.64.070(b); however, any such Retailer is subject to the prohibition on the Sale  and Distribution of Electronic Cigarette Products established in Section  4.64.030(l) unless exempt by 4.64.030(l)(i); and     Not Yet Approved  12 20200422_ts_24_206 (3) Any lawfully operating Retailer of Tobacco Products that would otherwise  become ineligible to receive or renew a Permit due to the creation or relocation  of a School.     (e)  No Permit may be issued to authorize Retailing at a location which is within 500 feet of a  location occupied by another Retailer, as measured by a straight line between any point  along the perimeter of an existing Retailer’s business location and any point along the  perimeter of the Permit applicant’s proposed business location; provided, however, that  the prohibition contained in this subsection (e) shall not apply to:     (1)  Any Retailer of Tobacco Products (as such term was defined in the predecessor  Ordinance No. 5418) operating lawfully on June 30, 2018 provided that the  Retailer obtains a permit prior to July 1, 2020 pursuant to sections 4.64.050 and  4.64.060, and timely renews its permit pursuant to section 4.64.070(b); and     (2)  Any Retailer of electronic smoking devices (as such term was defined in the  predecessor Ordinance No. 5418) operating lawfully on June 30, 2018 provided  that the Retailer obtains a permit prior to July 1, 2020 pursuant to sections  4.64.050 and 4.64.060, and timely renews its permit pursuant to section  4.64.070(b); however, any such Retailer is subject to the Prohibition on the Sale  and Distribution of Electronic Cigarette Products established in Section  4.64.030(l) unless exempt by 4.64.030(l)(i).     (f)  Any exemption granted to a Retailer pursuant to subsections (d) and (e) shall cease to  apply upon the earlier of any of the following to occur:     (1)  The Retailer fails to timely renew the Permit pursuant to Section 4.64.070(b) of  this Chapter.    (2)  A new Person obtains Ownership in the business.     (3) A Retailer’s Permit is terminated pursuant to Section 4.64.130(g).        4.64.050.  Application procedure.       (a)  It is the responsibility of each Retailer to be informed of all laws applicable to Retailing,  including those laws affecting the issuance of a Permit.  No Retailer may rely on the  issuance of a Permit as a determination by the City that the Retailer has complied with  all laws applicable to Retailing.  A Permit issued contrary to this Chapter, contrary to any  other law, or on the basis of false or misleading information supplied by a Retailer shall  be revoked pursuant to Section 4.64.060 of this Chapter.     (b)  All Permit applications shall be submitted on a form supplied by the Department.     Not Yet Approved  13 20200422_ts_24_206 (c)  A permitted Retailer shall inform the Department in writing of any change in the  information submitted on an application for a Permit within 14 calendar days of a  change.     (d)  All information specified in an application pursuant to this section shall be subject to  disclosure under the California Public Records Act (Government Code Section 6250 et  seq.) or any other applicable law, subject to the laws’ exemptions.       4.64.060.  Permit issuance, denial, and revocation.      (a)  Upon the receipt of a complete application for a Permit, the application fee, and the  annual Permit fee, the Department shall issue a Permit unless substantial evidence  demonstrates that one or more of the following bases for denial exists:     (1)  The information presented in the application is inaccurate or false.     (2)  The application seeks authorization for Retailing at a location for which this  Chapter prohibits issuance of a Permit.     (3)  The application seeks authorization for Retailing by a Person to whom this  Chapter prohibits issuance of a Permit.     (4)  The application seeks authorization for Retailing that is prohibited pursuant to  this Chapter (e.g., mobile vending, Electronic Cigarette Products) or that is  unlawful pursuant to any other law.     (b)  A Permit shall be revoked if the Department finds that one or more of the bases for  denial of a Permit under this section existed at the time application was made or at any  time before the Permit issued.  Such a revocation shall be without prejudice to the filing  of a new Permit application.        4.64.070.  Permit term, renewal, and expiration.       (a)  Term of Permit.  The term of a Permit is one year.  A Permit is invalid upon expiration.     (b)  Renewal of Permit.  The Department shall renew a Permit upon timely payment of the  annual Permit fee provided that the Retailer is in compliance with this Chapter, as  amended.  The Department may, in its discretion, agree to renew any expired Permit  within the three‐month period following expiration if the Retailer pays the annual  Permit fee and applicable late charges.  For every calendar month, or fraction thereof,  that a Retailer fails to renew an expired Permit, a late charge equal to 20 percent of the  annual Permit fee shall be assessed.  A Permit renewed within three calendar months of  expiration shall be treated as if timely renewed.     Not Yet Approved  14 20200422_ts_24_206 (c)  Issuance of Permit after revocation or expiration of Permit.  To apply for a new Permit  more than three calendar months after expiration of a Permit or following revocation of  a Permit that was wrongly issued, a Retailer must submit a complete application for a  Permit, along with the application fee and annual Permit fee.  The Department shall  issue a Permit pursuant to the requirements of Section 4.64.060 of this Chapter.       4.64.080.  Permits nontransferable.       (a)  A Permit may not be transferred from one Person to another or from one location to  another. Whenever a new Person obtains Ownership in a business for which a Permit  has been issued, a new Permit shall be required, but any exemption granted pursuant to  Sections 4.64.030 or 4.64.040 of this Chapter shall cease to apply.     (b)  Notwithstanding any other provision of this Chapter, prior violations of this Chapter at a  location shall continue to be counted against a location and Permit ineligibility and  suspension periods shall continue to apply to a location unless:     (1)  One hundred percent of the interest in the stock, assets, or income of the  business, other than a security interest for the repayment of debt, has been  transferred to one or more new owners; and     (2)  The City is provided with clear and convincing evidence, including an affidavit,  that the business has been acquired in an Arm’s Length Transaction.       4.64.090.  Permit conveys a limited, conditional privilege.       Nothing in this Chapter shall be construed to grant any Person obtaining and maintaining a  Permit any status or right other than the limited, conditional privilege to act as a Retailer at the  location in the City identified on the face of the Permit.  All Permits are issued subject to the  City’s right to amend this Chapter, and Retailers shall comply with all provisions of this Chapter,  as amended.        4.64.100.  Fees.       The Department shall not issue or renew a Permit prior to full payment of any applicable fees.  The City shall, from time to time, establish by resolution or ordinance the fees to issue or to  renew a Permit.  The fees shall be calculated so as to recover the cost of administration and  enforcement of this Chapter, including, for example, issuing a Permit, administering the Permit  program, Retailer education, Retailer inspection and compliance checks, documentation of  violations, and prosecution of violators, but shall not exceed the cost of the regulatory program  authorized by this Chapter.  All fees and interest earned from such fees shall be used exclusively  to fund administration and enforcement of this Chapter.         Not Yet Approved  15 20200422_ts_24_206 4.64.110.  Compliance monitoring.       (a)  Compliance with this Chapter shall be monitored by the Department.  In addition, any  peace officer may enforce the penal provisions of this Chapter.  The City Manager may  designate any number of additional individuals to monitor and facilitate compliance  with this Chapter.     (b)  The Department or other individuals designated to enforce the provisions of this  Chapter shall check each Retailer at least once per 12‐month period to determine if the  Retailer is complying with all laws applicable to Retailing, other than those laws  regulating underage access to Tobacco Products.  Nothing in this paragraph shall create  a right of action in any Retailer or other Person against the City, the County of Santa  Clara, or its agents.     4.64.120.  Prevention of underage Sales.       (a)  The Department or other departments or individuals designated to enforce the  provisions of this Chapter shall, in conjunction with the Police Department, check each  Retailer at least once per 12‐month period to determine whether the Retailer is  conducting business in a manner that complies with laws regulating youth access to  Tobacco Products. Nothing in this paragraph shall create a right of action in any Retailer  or other Person against the City, the County of Santa Clara, or its agents.     (b)  The City shall not enforce any law establishing a minimum age for Tobacco Product  purchases against an individual who otherwise might be in violation of such law because  of the individual’s age (“Youth Decoy”) if the potential violation occurs when:     (1)  The Youth Decoy is participating in a compliance check supervised by a peace  officer or a code enforcement official of the City or County of Santa Clara;     (2)  The Youth Decoy is acting as an agent of a Department or individual designated  by the City or County of Santa Clara to monitor compliance with this Chapter; or     (3)  The Youth Decoy is participating in a compliance check funded in part, either  directly or indirectly through subcontracting, by the City, the County of Santa  Clara, or the California Department of Public Health.       4.64.130.  Penalties for a violation by a Retailer with a Permit.       (a)  Administrative fine.  In addition to any other penalty authorized by law, an  administrative fine shall be imposed and a Permit shall be suspended if any court of  competent jurisdiction determines, or the Department finds based on a preponderance  of the evidence that the Retailer, or any of the Retailer’s agents or employees, has  violated any of the requirements, conditions, or prohibitions of this Chapter, has pled  Not Yet Approved  16 20200422_ts_24_206 guilty, “no contest” or its equivalent to such a violation, or has admitted to a such a  violation.     (b)  Amount of fine.  The amount of the administrative fine for each such violation shall be  as follows:     (1)  A fine not to exceed $100.00 for a first violation within a 12‐month period;    (2)  A fine not to exceed $200.00 for a second violation within a 12‐month period;  and;    (3)  A fine not to exceed $500.00 for each additional violation within a 12‐month  period.     (c)  Time period for Permit suspension.  The period of the suspension shall be as follows:    (1)  For a first violation of this Chapter at a location within any 60‐month period, the  Permit shall be suspended for up to 30 calendar days.     (2)  For a second violation of this Chapter at a location within any 60‐month period,  the Permit shall be suspended for up to 90 calendar days.     (3)  For each additional violation of this Chapter at a location within any 60‐month  period, the Permit shall be suspended for up to one year.      (d)  Waiver of penalties for first violation. The Department may waive any penalties for a  Retailer’s first violation of any requirement, condition, or prohibition of this Chapter,  other than a violation of a law regulating youth access to Tobacco Products, if the  Retailer admits the violation in writing and agrees to forego a hearing on the allegations.  Regardless of the Department’s waiver of penalties for a first violation, the violation will  be considered in determining the penalties for any future violation.     (e)  Corrections period. The Department shall have discretion to allow a Retailer a period of  time to correct any violation of any requirement, condition, or prohibition of this  Chapter, other than a violation of a law regulating youth access to Tobacco Products.  If  the Department exercises its discretion to provide a corrections period, and a Retailer’s  violation is corrected within the time allowed for correction, no penalty shall be  imposed under this section.     (f) Written notice of penalties. Whenever a fine is issued and/or a Permit is suspended  based on a violation of this Chapter, the Department shall provide the Retailer written  notice of the violation and the fine and suspension, including when the suspension shall  take effect.    Not Yet Approved  17 20200422_ts_24_206 (g)  Revocation for Retailers of flavored Tobacco Products or Electronic Cigarette Products.   In addition to any other penalty authorized by law, a Permit shall be revoked if any court  of competent jurisdiction determines, or the Department finds based on a  preponderance of the evidence that any Retailer of flavored Tobacco Products and/or  Electronic Cigarette Products, or any of the Retailer’s agents or employees, has violated  section 4.64.030(k) (Prohibition on Sale or Distribution of Tobacco Products  to individuals under 21), has pled guilty, “no contest” or its equivalent to such a  violation, or has admitted to a such a violation, on two or more occasions within any 24‐ month period.  The Department shall provide the Retailer written notice of the  violations and revocation, including when the revocation shall take effect.      4.64.140.  Penalties for Retailing without a Permit.       (a)  Administrative fine. In addition to any other penalty authorized by law, an  administrative fine and an ineligibility period for application or issuance of a Permit shall  be imposed if a court of competent jurisdiction determines, or the Department finds  based on a preponderance of evidence, that any Person has engaged in Retailing at a  location without a valid Permit, either directly or through the Person’s agents or  employees, has pled guilty, “no contest” or its equivalent to such a violation, or has  admitted to such a violation.     (b)  Amount of fine. The amount of the administrative fine for each such violation shall be as  follows:     (1)  A fine not to exceed $100.00 for a first violation within a 12‐month period;     (2)  A fine not to exceed $200.00 for a second violation within a 12‐month period;  and     (3)  A fine not to exceed $500.00 for each additional violation within a 12‐month  period.     (c)  Time period for Permit ineligibility.  The ineligibility period shall be as follows:    (1)  For a first violation of this section at a location within any 60‐month period, no  new Permit may be issued for the Person or the location (unless Ownership of  the business at the location has been transferred in an Arm’s Length Transaction)  until 30 calendar days have passed from the date of the violation.     (2)  For a second violation of this section at a location within any 60‐month period,  no new Permit may be issued for the Person or the location (unless Ownership of  the business at the location has been transferred in an Arm’s Length Transaction)  until 90 calendar days have passed from the date of the violation.     Not Yet Approved  18 20200422_ts_24_206 (3)  For each additional violation of this section at a location within any 60‐month  period, no new Permit may be issued for the Person or the location (unless  Ownership of the business at the location has been transferred in an Arm’s  Length Transaction) until one year has passed from the date of the violation.     (d)  Waiver of penalties for first violation. The Department may waive any penalties for a  Retailer’s first violation of this section, unless the violation also involves a violation of a  law regulating youth access to Tobacco Products, if the Retailer admits the violation in  writing and agrees to forego a hearing on the allegations. Regardless of the  Department’s waiver of penalties for a first violation, the violation will be considered in  determining the penalties for any future violation.     (e)  Written notice of penalties. Whenever a fine is issued and/or a Permit is suspended  pursuant to this section, the Department shall provide the Retailer written notice of the  fine and suspension, including when the suspension shall take effect.    (f) Appeals. Any penalties imposed under this section may be appealed pursuant to Section  4.64.150 of this Chapter.  A timely appeal shall stay enforcement of the appealed  penalties while the appeal is ongoing.       4.64.150.  Appeals.       (a) Any Retailer served with a written notice of penalties may request an administrative  hearing to appeal the existence of the violation, the amount of the fine, and/or the  length of the suspension by returning a completed hearing request form to the Office  of the County Hearing Officer (or City Clerk if violation is enforced by City) within 10  days from the date of the written notice of penalties.    (b) The Retailer shall include the following in or with the hearing request form:    (1) A statement indicating the reason the Retailer contests the written notice of  penalties;    (2) Any evidence the Retailer wants the Hearing Officer to consider;    (3) An advance deposit of the amount of any fine challenged; and    (4) The address of the Retailer and, if available, an email address that can be used  for contact and correspondence by the Office of the County Hearing Officer  (or City Clerk if violation is enforced by City) and the Department.  The  Retailer may request service of notice by mail.    Not Yet Approved  19 20200422_ts_24_206 (c) The hearing request form shall be deemed filed on the date received by the Office of  the County Hearing Officer (or City Clerk if violation is enforced by City).  A timely  appeal shall stay enforcement of the appealed penalties while the appeal is ongoing.    (d) After receiving a timely hearing request form, the Office of the County Hearing Officer  (or City Clerk if violation is enforced by City) shall notify the Department as soon as  practicable and then shall schedule an administrative hearing.  The Office of the  County Hearing Officer (or City Clerk if violation is enforced by City) shall provide the  Retailer and the Department at least ten calendar days’ written notice of the date,  time, and place of the administrative hearing and the name of the Hearing Officer who  will conduct the hearing.  The notice shall be given to the Retailer either by email, if  requested, or by first class mail, postage prepaid.    (e) Between the time the Retailer requests the administrative hearing and the time of the  Hearing Officer’s decision, the Retailer, the Department, and each of their  representatives shall not engage in ex parte communications with the Office of the  County Hearing Officer (or City Clerk if violation is enforced by City) or the Hearing  Officer regarding the matters at issue in the hearing.    (f) The hearing shall be conducted by the Hearing Officer on the date, time, and place  specified in the notice to the Retailer.  A Retailer’s failure to appear at the hearing  shall constitute an abandonment of the hearing request and a failure to exhaust  administrative remedies as a precedent to judicially challenge the existence of the  violation and the imposition of the fine and suspension.    (g) At the hearing, the Retailer and the Department shall have the opportunity to present  evidence, including witnesses, relevant to the Hearing Officer’s determination of the  matter.  Neither the provisions of the Administrative Procedure Act (Government Code  Section 11500 et seq.) nor the formal rules of evidence in civil or criminal judicial  proceedings shall apply to such hearing.  The Hearing Officer may admit any evidence,  including witnesses, relevant to the determination of the matter, except as otherwise  provided in Section 4.64.160(c).     (h) The written notice of penalties and any other reports prepared by or for the  Department concerning the violation shall be admissible and accepted by the Hearing  Officer as prima facie evidence of the violation and the facts stated in those  documents.     (i) The Hearing Officer may continue the hearing from time to time, in his or her sole  discretion, to allow for its orderly completion.  After receiving the evidence submitted  at the hearing, the Hearing Officer may further continue the hearing and request  additional information from either the Department or the Retailer.    Not Yet Approved  20 20200422_ts_24_206 (j) After considering the evidence and testimony submitted the Hearing Officer shall issue  a written decision regarding the matters properly raised in the request for  administrative hearing. The Hearing Officer’s decision shall:    (1) Be based on a preponderance of the evidence.    (2) Include a statement of the reasons for the decision.    (3) Be issued within 20 calendar days of the close of the hearing.    (4) Be served on both the Retailer and the Department. The decision shall be given  to the Retailer either by email, if requested, or by first class mail, postage  prepaid.    (k) Based on the Hearing Officer’s decision, the Office of the County Hearing Officer (or  City’s Administrative Services Division if violation is enforced by City) shall promptly  refund to the Retailer any amount of the advance fine deposit the Department is not  entitled to and shall provide the remainder to the Department.    (l) The Hearing Officer’s written decision shall constitute the final administrative decision  of the City.      4.64.160.  Enforcement.       (a)  Any violation of this Chapter is hereby declared to be a public nuisance.     (b)  Causing, permitting, aiding, abetting, or concealing a violation of any provision of this  Chapter shall also constitute a violation of this Chapter.     (c)  Whenever evidence of a violation of this Chapter is obtained in any part through the  participation of an individual under the age of 21 years old, such an individual shall not  be required over his or her objection to appear or give testimony in any civil or  administrative process brought to enforce this Chapter and the alleged violation shall be  adjudicated based upon the sufficiency and persuasiveness of the evidence presented.     (d)  Violations of this Chapter may be remedied by a civil action brought by the City Attorney  or Santa Clara County Counsel, including, but not limited to, administrative or judicial  nuisance abatement proceedings, civil code enforcement proceedings, and suits for  injunctive relief.  For the purposes of the civil remedies provided in this Chapter, each  day on which a Tobacco Product is offered for Sale in violation of this Chapter, and each  individual retail Tobacco Product that is Sold or Distributed in violation of this Chapter,  shall constitute a separate violation of this Chapter.     Not Yet Approved  21 20200422_ts_24_206 (e)  Any Person found guilty of violating any provision of this Chapter shall be deemed guilty  of an infraction, punishable as provided by California Government Code § 25132.     (f)  The remedies provided by this Chapter are cumulative and in addition to any other  remedies available at law or in equity.     4.64.170.  No conflict with federal or state law.    Nothing in this Chapter shall be interpreted or applied so as to create any requirement, power,  or duty that is preempted by, or in conflict with, federal or state law, rules, or regulations.      SECTION 3.  If any section, subsection, clause or phrase of this Ordinance is for any  reason held to be invalid, such decision shall not affect the validity of the remaining portion or  sections of the Ordinance.  The Council hereby declares that it should have adopted the  Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the  fact that any one or more sections, subsections, sentences, clauses or phrases be declared  invalid.     SECTION 4.  The Council finds that this project is exempt from the provisions of the  California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA  Guidelines, because it can be seen with certainty that there is no possibility that the ordinance  will have a significant effect on the environment.    //    //    //    //    //    //    //    //    //    //    //  Not Yet Approved  22 20200422_ts_24_206 SECTION 5.  This ordinance shall be effective on July 1, 2020.      INTRODUCED:    PASSED:    AYES:    NOES:    ABSENT:    ABSTENTIONS:    ATTEST:           ____________________________    ____________________________  City Clerk       Mayor    APPROVED AS TO FORM:    APPROVED:    ____________________________    ____________________________  Deputy City Attorney     City Manager            ____________________________          Director of Public Works            ____________________________          Chief of Police             ____________________________          Director of Administrative Services  Attachment B-Comparison of Current Palo Alto Tobacco Retail Ordinance, Santa Clara County Ordinance, and Proposed Palo Alto Ordinance Current TRP Ordinance Requirements Adopted in 2018 Santa Clara County TRP Ordinance Changes Adopted by Santa Clara County in November 2019 Proposed Palo Alto TRP Ordinance Changes Banned Products Prohibits pharmacies and vending machine sales of tobacco products; Prohibits the sale of flavored tobacco products except at adult-only stores (stores that prohibit anyone under the age of 21 from entering unless they are with an adult). Prohibits the sale and distribution of electronic cigarette products at all retailers including adult-only (over-21) retailers; Prohibits the sale of all flavored tobacco products at all retailers including adult-only stores. Same as current ordinance but would: prohibit the sale of all Electronic Cigarette Products except at adult- only stores. Administrative Requirements Limits storefront advertising of tobacco products; New retailers may not locate within 500 feet of another tobacco retailer or within 1,000 feet of a school. Limits storefront advertising of tobacco products; New retailers may not locate within 500 feet of another tobacco retailer or within 1,000 feet of a school. Same as current ordinance but would: prohibit people under age 21 from entering an adult-only store even if accompanied by an adult; require store staff to be located close enough to the store entrance to check ID before any member of the public enters. Enforcement Periodic compliance checks by state and federal agencies; Permit checks conducted by Santa Clara County Department of Health; Undercover checks conducted by Palo Alto Police Department to enforce no under age -21 sales; Repeat violations are considered over 24-month time span. Periodic compliance checks by state and federal agencies; Permit checks conducted by Santa Clara County Department of Health; Undercover checks conducted by Palo Alto Police Department to enforce no under age - 21 sales; Repeat violations are considered over 60- month time span. Same as current ordinance but: repeat violations of sales to anyone under age 21 are considered over 60- month time span; Retailer would lose exemption if two under age-21 sales violations occurred within 24 months. Additional State and Federal Restrictions (discussed in Section 2 of this report) Effective January 1, 2020 SB 39, Hill requires signature of a person 21 years of age or older for delivery of an online tobacco product sale; Effective February 6, 2020 the United States Food and Drug Administration prohibits all retailers from selling flavored cartridge-based e- cigarette products. The following products are exempted: tobacco and menthol flavors, e-liquid flavors used in tank-based systems, and in disposable, single-use “disposable” electronic cigarettes. Attachment B cityofpaloalto. or g Printed with soy-based inks on 100% recycled paper processed without chlorine. CITY OF PALO ALTO Public Works 2501 Embarcadero Way Palo Alto, CA 94303 February 18, 2020 Dear Business Owner, You are receiving this letter because Palo Alto City Council will be voting on proposed changes to the City of Palo Alto Ordinance Code 4.64 Permits for Retailers of Tobacco Products (TRP) which may impact your business. On December 9, 2019, Palo Alto City Council directed City staff to recommend additional measures to address the rapid increase in use of e-cigarettes and vaping products among youth. This included direction to adopt the updated requirements of the Santa Clara County Tobacco Retail Permit Ordinance passed by Santa Clara County Board of Supervisors on November 5, 2019. The key proposed changes are summarized below: 1. For “adult-only (over age-21) tobacco stores” where 60% gross revenue is from tobacco products, the primary proposed TRP changes would: a) Prohibit the sale and distribution of all electronic cigarette products, e.g., devices such as e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah, or any flavored or unflavored liquid or substance containing nicotine, whether sold separately or sold in combination with any device or delivery system); b) Prohibit the sale of flavored tobacco products. Current ordinance requirements allow adult-only stores to sell flavored tobacco products; c) Extend the look-back” violation period from 24 months to 60 months. 2. For all other retailers, the proposed changes to the Ordinance Code would: a) Prohibit the sale and distribution of all electronic cigarette products e.g., devices such as e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah, or any flavored or unflavored liquid or substance containing nicotine, whether sold separately or sold in combination with any device or delivery system; b) Extend the look-back violation period from 24 months to 60 months. To help retailers understand the proposed new ordinance requirements a Summary of the Tobacco Retail Permit Requirements and a list of Frequently Asked Questions are included as attachments. Palo Alto City Council will vote on the proposed Tobacco Retail Permit Ordinance during the April 6, 2020 City Council Meeting (6:00pm, 250 Hamilton Avenue, Palo Alto, City Council Chambers). Council meeting agendas are subject to change so please check the agenda online before attending. The proposed ordinance changes and staff report are posted two weeks before the Council meeting at cityofpaloalto.org/gov/depts/cou/council_agendas.asp. Retailers may attend the Council meeting to provide public comment, or email citycouncil@cityofpaloalto.org. For more information cityofpaloalto.org/smokingordinance, email smoking@cityofpaloalto.org, or call (650) 329-2122. Sincerely, Phil Bobel, Assistant Director City of Palo Alto Public Works Department 1 City of Palo Alto Tobacco Retail Permit Ordinance (Municipal Code 4.64) Frequently Asked Questions On December 9, 2019, Palo Alto City Council directed City staff to revise the City’s current Tobacco Retail Permit Ordinance (TRP) to further restrict the sale and distribution of all e-cigarette products and flavored tobacco products in Palo Alto. The direction was in response to public concern about increased use of e-cigarette products and vaping among youth, and more than 1,600 cases of related lung injury and 34 confirmed deaths nation-wide in 2019. The following information provides answers to frequently asked questions about the proposed changes to Palo Alto’s Tobacco Retail Permit Ordinance. 1. What is the difference between the California Cigarette and Tobacco Products Retailer License and the Santa Clara County Tobacco Retail Permit? Tobacco retailers must maintain both a California Cigarette and Tobacco Products Retailer License ($265 per year) and a Santa Clara County Tobacco Retail Permit ($425 per year). The TRP is administered by the Santa Clara County Department of Environmental Health. The TRP requires additional measures beyond State requirements to curb youth smoking. 2. How are Electronic Cigarette Products and Flavored Tobacco Products defined? An “Electronic Cigarette Product (or e-cigarette)” is any device or delivery system used to deliver nicotine in aerosolized or vaporized form, including e-cigarettes, e-cigars, e-pipes, vape pens, or e-hookahs, or any component, part, or accessory of such a device or delivery system that is used during its operation. Electronic Cigarette Products also include flavored and unflavored liquids or substances containing nicotine, whether sold separately or sold in combination with any device or delivery system. Specific examples include: e-juice or liquid (flavored or unflavored), e-cigarette pods or cartridges (flavored or unflavored), any e-cigarette devices, puff bars or disposable e-cigarette products. A “Flavored Tobacco Product” includes flavored cigarettes, cigarillos or smokeless tobacco that imparts a characterizing taste or smell other than tobacco. Examples include: menthol, mint, wintergreen, fruit, candy, alcohol or spice flavors. 3. What is considered an “adult-only” tobacco store or retailer? “Adult-only” tobacco stores:  Primarily sell tobacco products;  Generate more than 60% of gross revenue from tobacco products or paraphernalia;  Are required to post a sign outside the location clearly stating that anyone under age 21 is prohibited from entering the premises;  Do not sell alcohol or food for onsite consumption. 4. What are the new proposed requirements in the revised Tobacco Retail Ordinance? If City Council approves the new Ordinance requirements, all retailers would be restricted from selling e-cigarette products and “adult-only (over age-21)” stores would no longer be allowed to sell any flavored tobacco products. 2 5. I am an “adult-only (over age 21)” tobacco retailer in Palo Alto. What would the new Ordinance requirements be for my business? Under new Ordinance requirements, these retailers would no longer be able to sell any Flavored Tobacco Products or Electronic Cigarette Products. 6. I am a retailer (not an over age 21 Tobacco Retailer) in Palo Alto. What would the new requirements be for my business? For these retailers, the new Ordinance would prohibit the sale of all Electronic Cigarette Products. Ordinance requirements that became effective January 1, 2019 prohibiting the sale Flavored Tobacco Products would remain. 7. Which tobacco products or e-cigarette products can retailers or adult-only tobacco retailers sell under the proposed Ordinance revisions? Retailers would be able to sell smoking cessation products that have been approved by the United States Food and Drug Administration for sale as a tobacco cessation product, and non-flavored tobacco products such as cigarettes, smokeless/chewing tobacco, cigars, cigarillos/little cigars, and sisha (hookah tobacco). No e-cigarette products of any kind would be allowed for sale. 8. When would the new Ordinance take effect? If approved by City Council, the revised Tobacco Retail Permit Ordinance would become effective on the annual renewal date of each retailer’s permit, and all retailers regardless of their annual permit start date would be required to comply by July 1, 2020. If you have questions about your permit expiration date, please contact Don Tran at don.tran@phd.sccgov.org, Santa Clara County Public Health Department. 9. How would the Ordinance be enforced? The County of Santa Clara Department of Environmental Health conducts yearly inspections of all tobacco retailers. In addition, the City of Palo Alto Police Department conducts annual undercover youth decoy checks to confirm that retailers comply with Ordinance requirements. 10. What are the proposed penalties for not complying with the new Ordinance requirements? Administrative fines up to $500 and permit suspensions for up to one year may be imposed under the proposed Ordinance. 11. How do I provide input to City Council about the proposed Ordinance changes? Palo Alto City Council will vote on the proposed Tobacco Retail Permit Ordinance during the April 6, 2020 City Council Meeting (6:00pm, 250 Hamilton Avenue, Palo Alto, City Council Chambers). Retailers may attend the Council meeting to provide public comment, email citycouncil@cityofpaloalto.org, or mail comments to City Council, 250 Hamilton Avenue, Palo Alto, CA 94301. Please note that Council Meeting agendas are subject to change so check the agenda online before attending. The proposed Ordinance changes and staff report will be posted two weeks before the Council meeting at http://www.cityofpaloalto.org/gov/depts/cou/council_agendas.asp. For more information visit cityofpaloalto.org/smokingordinance, email cleanbay@cityofpaloalto.org, or call (650) 329-2122. The City of Palo Alto has two ordinances which restrict smoking to protect public health. The ordinances are summarized below. For more information visit cityofpaloalto.org/smokingordinance, call (650) 329-2122, or email smokingordinance@cityofpaloalto.org. SUMMARY OF SMOKING AND VAPING ORDINANCE REQUIREMENTS Public spaces, e.g., all parks, open spaces and Palo Alto facilities commercial dining areas, entryways, public events, recreation areas, service areas, commercial indoor areas, outdoor service areas (bus stops, ATMs, and ticket lines), employment places, construction worksites; The Downtown Business District (the University Avenue area); 25 feet from any door or window to any enclosed area; All multi-unit residences with two or more units and common areas, excluding accessory dwelling units, and junior accessory dwelling units; Exceptions: designated smoking areas established by commercial areas that are at least 25 feet away from any windows or doors to enclosed areas; and that include receptacles to control litter. 1.Municipal Code 9.14-Smoking and Tobacco Regulations This ordinance restricts where tobacco may be used. Smoking/vaping is prohibited in: Prohibits pharmacies and vending machines from selling tobacco products; Retailers must display a Tobacco Retail Permit and new retailers are not eligible for a permit if their business is located within 500 feet of another retailer or 1,000 feet of a school; Retailers such as gas stations and liquor stores can currently sell e-cigarette devices but not flavored tobacco products or flavored e-liquids; Flavored tobacco products may only be sold at “adult-only (over age-21)” stores; Limits storefront advertising of tobacco products; Requires the County to administer permits, and Palo Alto Police Department to provide youth decoy undercover checks. 2. Municipal Code 4.64-Permits for Retailers of Tobacco Products (TRP) This ordinance restricts where and which tobacco products may be sold. The current Tobacco Retail Permit: The proposed revisions to the TRP would:  Prohibit the sale and distribution of all Electronic Cigarette Products at all stores (e.g, gas stations, liquor stores and adult-only stores);  Prohibit the sale of flavored tobacco products at adult-only stores;  Extend span of time over which repeat violations are considered from 24 months to 60 months after the first violation so that the number of violations a retailer might accrue with escalating penalties (fines, permit suspensions) would be considered over a span of five years instead of two years. Definitions: 1. An “Electronic Cigarette Product is: a) any device or delivery system used to deliver nicotine in aerosolized or vaporized form, including e-cigarettes, e-cigars, e-pipes, vape pens, or e-hookahs, or any component, part, or accessory of such a device or delivery system that is used during its operation. b) flavored and unflavored liquids or substances containing nicotine, Specific examples include: e-juice or liquid (flavored or unflavored), e-cigarette pods or cartridges (flavored or unflavored), any e-cigarette devices, puff bars or disposable e-cigarette products. 2. A “Flavored Tobacco Product” includes flavored cigarettes, cigarillos or smokeless tobacco that imparts a characterizing taste or smell other than tobacco. Examples include: menthol, mint, wintergreen, fruit, candy, alcohol or spice flavors. AGENDA ITEM NO. 6 CITY OF PALO ALTO MEMORANDUM TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: Public Works AGENDA DATE: May 18, 2020 ID#: 11005 SUBJECT: Adoption of Amendments to the City of Palo Alto Tobacco Retail Ordinance (PAMC Chapter 4.64) Consideration of Proposed Amendments to PAMC Chapter 4.64 was moved from the May 4, 2020 Council meeting and is now scheduled to be considered as an action Item (Item #6) on May 18, 2020. The City has received several comments about the proposed amendments and has taken several steps to address them and provide clarifications. Staff has made several changes to the proposed Ordinance amendments. These changes: 1) clarify that no new adult-only stores would be permitted in Palo Alto; 2) add that any violations of County or State public health orders can lead to the loss of a City permit to operate; 3) clarify that tobacco retailer permits may be transferred to new owners without loss of their status as adult-only stores; and 4) clarify that no new distance requirements for adult-only stores are imposed upon change of ownership. Staff has prepared a: •Summary of Major Public Comments About the Proposed Tobacco Retail Permit Ordinance (Attachment A); •Comparison of Tobacco Prevention Responses in Surrounding Communities (Attachment B); •Redline Comparison of the Proposed Ordinance and Santa Clara County’s Tobacco Retail Permit Ordinance (Attachment C), and; •Final Copy of the Proposed Tobacco Retail Permit Ordinance (Attachment D). ___________________________ ___________________________ Director City Manager 5/14/2020 5/14/2020 AGENDA ITEM NO. 6 Attachment A–Summary of Major Public Comments About Palo Alto’s Proposed Tobacco Retail Permit Ordinance Public Comment Theme Staff Response/How Ordinance Addresses Comment The City must do its part to reduce youth access to vaping and flavored tobacco. Palo Alto’s Proposed Ordinance would be the strongest among cities in the County for those that have adult-only stores. Exempting adult-only stores will lead to more adult- stores and more access to vaping products. No new adult only stores can open. The ordinance requires adult-only retailers to be operating on June 30, 2020 to continue future business operations. Flavored tobacco product availability is what compels kids to use smoking/vaping products. • Flavored tobacco/flavored vaping products currently prohibited at 15 retailers; • Proposed Ordinance would remove sales of all e-cigarettes products (devices and liquids) at non-adult retailers; • Ordinance adds requirements to deter under age-21 access to adult-only stores. The City would have to cover the costs to enforce the permitting process and so enforcement would become a low priority. • The City would require permit fees to cover administrative and staff costs (currently done by the County). Some fees could help fund youth smoking/vaping prevention programs; • Adult-only store enforcement would be a high priority; • State and Federal checks at stores would also continue. The Ordinance will negatively impact my business financially. • Proposed exemptions for adult-only stores, with new restrictions to deter under-age sales. AGENDA ITEM NO. 6 Attachment B–Comparison of Tobacco Prevention Responses in Surrounding Communities City Ordinance Status and Requirements Retailer Impact Santa Clara County Partner 1 Santa Clara County Adopted revised Ordinance 11/19/2019. No flavored or e-cigarettes at any store. Retailers with existing permits can continue to sell until 7/1/2020. • One store closed • One store remains open Yes (self) 2 Los Gatos Adopted 11/19/2019 No flavored or e-cigarettes at any store. Retailers with existing permits can continue to sell until 7/1/2020. No stores impacted in this community (Ordinance enacted as a preventative measure). Yes 3 Cupertino Adopted 2/18/2020. No flavored or e-cigarettes at any store. Retailers with existing permits can continue to sell until 7/1/2020. No adult only stores in this community. Yes 4 Saratoga Already have flavored tobacco ban; exploring the addition of vaping products. Scheduled for Council consideration in June 2020. No adult only stores in this community. Considering County partnership. 5 Los Altos Ordinance is like the County’s but exempts adult-only stores (Edward's Pipe & Tobacco). Exempted the city’s one adult-only retailer. No 6 Sunnyvale Considering flavored tobacco ban at all retailers (providing a six-month grace period to sell inventory in late 2020 or 2021). Still allows e-cigarettes to be sold within city. Three tobacco retailers would go out of business with flavored tobacco ban: • One vape shop • Two smoke shops (primarily sell flavored tobacco) No AGENDA ITEM NO. 6 City Ordinance Status and Requirements Retailer Impact Santa Clara County Partner 7 San Jose Exploring flavored tobacco and e-cigarette ban at all retailers and removing adult-only exemption in 2021. If Council bans all vapes, this will likely affect them. No 8 Menlo Park Effective 1/17/2020 No flavored tobacco and e-cigarettes at any store San Mateo County administers their program. Does not have many 21+ retailers; no stores reported closures so far. One gas station applied to add alcohol sales to offset financial impact. N/A 9 City and County of San Francisco Effective 1/29/2020 Restricts certain electronic cigarette products and flavored tobacco (two e-cigarettes were approved for sale). • At least two vape store closures • City staff cite that it was a major impact to retailers. Many retailers lost 70% sales of tobacco products • Legislation and fees caused decline in tobacco permitted retailers (from 923 in 2015, to 688 today) • Stores began selling CBD and cannabis products and glassware after ordinance. Vape stores changed to tobacco. N/A 1 Comparison of County’s Tobacco Permit Ordinance (Division B11, Chapter XXII)  With the City’s Proposed Ordinance to Amend Chapter 4.64 of the Palo Alto Municipal Code  (City’s deletions in strikethrough, additions underlined)  CHAPTER XXII4.64.  PERMITS FOR RETAILERS OF TOBACCO PRODUCTS  Sec. B11‐576  4.64.010.  Intent.   This Chapter is adopted to:   (1)Ensure compliance with the business standards and practices of the County; (2)Encourage responsible retailing of Tobacco Products; (3)Discourage violations of laws related to Tobacco Products, especially those that prohibit or discourage the Sale or Distribution of Tobacco Products to individuals under 21; (4)Respond to a new wave of addiction to Electronic Cigarette Products; (5)Reduce vulnerability to unexplained illnesses associated with Electronic Cigarette Products; and (6)Protect the public health and welfare. This Chapter does not expand or reduce the degree to which the acts regulated by federal or  state law are criminally proscribed or alter the penalties provided by such laws.   Sec. B11‐577  4.64.020.  Definitions.   For the purposes of this Chapter, the following definitions shall apply:   (a)Arm’s Length Transaction means a Sale in good faith and for valuable consideration that reflects the fair market value in the open market between two or more informed and willing parties, neither of which is under any compulsion to participate in the transaction. A Sale between relatives, related companies or partners, or a Sale for which a significant purpose is avoiding the effect of the violations of this Chapter is not an Arm’s Length Transaction. Attachment C- Redline Comparison of the Proposed Ordinance and Santa Clara County’s Tobacco Retail Permit Ordinance 2 (b) Department means the County’sany department of the City of Palo Alto or County of  Santa Clara designated by the City Manager to enforce or administer this Chapter,  including the County of Santa Clara’s Department of Environmental Health and any  agency or Person designated by the Director of the Department of Environmental  Health to enforce or administer the provisions of this Chapter.     (c) Distribute or Distribution means the transfer, by any Person other than a common  carrier, of a Tobacco Product to another Person for Sale or personal consumption.      (d) Electronic Cigarette Products means any of the following products:    (1) Any device or delivery system that can be used to deliver nicotine in aerosolized  or vaporized form, including, but not limited to, an e‐cigarette, e‐cigar, e‐pipe,  vape pen, or e‐hookah.     (2) Any component, part, or accessory of such a device or delivery system that is  used during its operation.      (3) Any flavored or unflavored liquid or substance containing nicotine, whether Sold  separately or Sold in combination with any device or delivery system that could  be used to deliver nicotine in aerosolized or vaporized form.     (4) Any product for use in an electronic nicotine device or delivery system whether  or not it contains nicotine or tobacco or is derived from nicotine or tobacco.    (5) Electronic Cigarette Products shall not include any battery, battery charger,  carrying case, or other accessory not used in the operation of the device if Sold  separately.  Electronic Cigarette Products shall not include any product that has  been approved by the United States Food and Drug Administration for Sale as a  tobacco cessation product or for other therapeutic purposes where that product  is marketed and Sold solely for such approved use.  See 21 U.S.C. § 387(a).  As  used in this subsection, nicotine does not include any food products as that term  is defined pursuant to Section 6359 of the California Revenue and Taxation Code.    (e) Ownership means possession of a ten percent or greater interest in the stock, assets, or  income of a business, other than a security interest for the repayment of  debt.  Notwithstanding any other definition in this Code, an Owner means a Person who  possesses Ownership.      (f) Permit means a valid permit issued by the Department to a Person to act as a Retailer.    (g) Retailer means any Person who Sells or Distributes Tobacco Products for any form of  consideration.  Retailing shall mean the doing of any of these actions.  This definition is  without regard to the quantity of Tobacco Products Sold or Distributed.   3   (h) School means a public or private elementary, middle, junior high, or high school.     (i(i) Sale and Sold includes any sale, exchange, barter or offer for sale.    (j) Tobacco Product means (unless specifically noted elsewhere) any product subject to  Subchapter IX (21 U.S.C. § 387 et seq. (“Subchapter IX”)) of the Federal Food, Drug, and  Cosmetic Act.  (See 21 U.S.C. § 387a(b) (products subject to Subchapter IX); 21 C.F.R. §§  1100.1‐1100.3 (tobacco products subject to Subchapter IX).)  Products subject to  Subchapter IX include, but are not limited to, cigarettes, cigarette tobacco, roll‐your‐ own tobacco, smokeless tobacco, cigars, pipe tobacco, waterpipe tobacco, and  Electronic Cigarette Products.  Products that are not subject to Subchapter IX include  accessories of Tobacco Products, such as, but not limited to, ashtrays, spittoons, and  conventional matches and lighters that solely provide an external heat source to initiate  but not maintain combustion of a Tobacco Product.      Sec. B11‐5784.64.030.  Requirements and prohibitions.       (a) Permit required. It shall be unlawful for any Person to act as a Retailer in an  unincorporated area of the County without first obtaining and maintaining a Permit  pursuant to this Chapter for each location at which Retailing occurs.     (b) Lawful business operation. It shall be a violation of this Chapter for any Retailer to  violate any local, state, or federal law applicable to Tobacco Products or the Retailing of  such Tobacco Products.     (c) Display of Permit. Each Permit shall be prominently displayed in a publicly visible place  at the location identified in the Permit.     (d) Notice of minimum age for purchase of Tobacco Products. Retailers shall post  conspicuously, at each point of purchase, a notice stating that selling Tobacco Products  to anyone under 21 years of age is illegal and subject to penalties. Such notice shall be  subject to the approval of the Public Health Department.     (e) Positive identification required. No Retailer shall Sell or Distribute a Tobacco Product to  another individual who appears to be under 30 years of age without first examining the  individual’s identification to confirm that the individual is at least the minimum age  required under state law to purchase and possess the Tobacco Product.     (f) Minimum age for individuals selling Tobacco Products. No individual who is younger  than the minimum age established by State law for the purchase or possession of  Tobacco Products shall engage in Retailing.      4 (g) False and misleading advertising prohibited. A Retailer without a Permit:     (1)  Shall keep all Tobacco Products out of public view.     (2)  Shall not display any advertisement relating to Tobacco Products that promotes  the Sale or Distribution of such products from the Retailer’s location or that  could lead a reasonable consumer to believe that Tobacco Products can be  obtained at that location.     (h) Limitation on storefront advertising. No more than 15 percent of the square footage of  the windows and clear doors of a physical storefront used for Retailing Tobacco  Products shall bear advertising or signs of any sort, and all advertising and signage shall  be placed and maintained in a manner that ensures that law enforcement personnel  have a clear and unobstructed view of the interior of the premises, including the area in  which the cash registers are maintained, from the exterior public sidewalk or entrance  to the premises. However, this latter requirement of this subsection (h) shall not apply  to an establishment where there are no windows or clear doors, or where existing  windows are located only at a height that precludes a view of the interior of the  premises by an individual standing outside the premises.     (i) Flavored Tobacco Products.      (1)  Except as permitted in paragraph (3) of this subsection (i), no Retailer shall Sell a  Tobacco Product containing, as a constituent or additive, an artificial or natural  flavor or aroma (other than tobacco) or an herb or spice, including but not  limited to strawberry, grape, orange, clove, cinnamon, pineapple, vanilla,  coconut, licorice, cocoa, chocolate, cherry, mint, menthol, or coffee, that is a  characterizing flavor or aroma of the Tobacco Product, smoke, or vapor  produced by the Tobacco Product.       (2)  A Tobacco Product shall be subject to a rebuttable presumption that the product  is prohibited by paragraph (1) of this subsection if:     (i)  The product’s manufacturer or any other Person associated with the  manufacture or Sale of Tobacco Products makes or disseminates public  statements or claims to the effect that the product has or produces a  characterizing flavor or aroma, other than tobacco; or     (ii)  The product’s label, labeling, or packaging includes a statement or  claim—including any text and/or images used to communicate  information—that the product has or produces a characterizing flavor or  aroma, other than tobacco.    5 (3)  Except as provided in Paragraph (4) of this subsection (i), Paragraph (1) of this  subsection (i) shall not apply to any Retailer that meets all the following criteria:     (i)  Primarily sells Tobacco Products;     (ii)  Generates more than 60 percent of its gross revenues annually from the  saleSale of Tobacco Products;     (iii)  Does not permit any individual under 21 years of age to be present or  enter the premises at any time, unless accompanied by the individual’s  parent or legal guardian, as defined in Section 6903 of the Family Code;     (iv)  Does not Sell alcoholic beverages or food for consumption on the  premises; and     (v)  Posts a sign outside the retail location that clearly, sufficiently, and  conspicuously informs the public that individuals under 21 years of age are  prohibited from entering the premises. ;    (vi) Posts a staff person adjacent to all public entrances to the premises and  verifies an individual’s age upon entering using the same standards as  section 4.63.030(e) (Positive identification required).  The staff person  may be located inside or outside the entrance.      (4) No Retailer that is issued a new Permit after December 19, 2019June 30, 2020  shall Sell or Distribute flavored Tobacco Products under paragraph (3) of this  subsection (i) after Permit issuance.  No Retailer that receives a Permit renewal  after December 19, 2019June 30, 2020 shall Sell or Distribute flavored Tobacco  Products under paragraph (3) of this subsection (i) after Permit renewal.   Regardless of the date of Permit issuance or renewal, no Retailer shall Sell or  Distribute flavored Tobacco Products after June 30, 2020.      ///    ///    ///    ///    ///    6 (i) Paragraph (4) of subsection (i) shall not apply to any Retailer of Tobacco  Products (as such term was defined in the predecessor Ordinance No.  5418) who the Department determines meets the criteria of section  4.63.030(i)(3) of Ordinance No. 5418 as of June 30, 2020, and provided  that the Retailer obtains a permit prior to July 1, 2020 pursuant to  sections 4.64.050 and 4.64.060, timely renews its permit pursuant to  section 4.64.070(b), and has not had its permit revoked pursuant to  section 4.64.130(g).  The exemption granted to a Retailer pursuant to this  subparagraph (i) shall cease to apply upon the earlier of any of the  following to occur:  (1) the Retailer fails to timely renew the Permit  pursuant to Section 4.64.070(b); or (2) a Retailer’s Permit is revoked  pursuant to Section 4.64.130(g).  The exemption in this subparagraph  shall continue to subsequent Retailers upon transfer of Ownership only if:  (1) the subsequent Retailer operates in the same location as the previous  Retailer; (2) the previous Retailer’s exemption did not cease due to  failure to timely renew the permit or permit revocation; (3) the previous  Retailer’s Permit is valid on the date of transfer of ownership to the  subsequent Retailer; (4) the subsequent Retailer applies for a Permit  within 14 days of the transfer in ownership; and (5) the subsequent  Retailer is issued a Permit.    (j) Vending machines prohibited. No Tobacco Product shall be Sold or Distributed to the  public from a vending machine or appliance, or any other coin or token operated  mechanical device designed or used for vending purposes, including, but not limited to,  machines or devices that use remote control locking mechanisms.     (k) Prohibition on Sale or Distribution of Tobacco Products to individuals under 21. No  Retailer shall Sell or Distribute any Tobacco Product to any individual who is under  21 years of age.    (l) Prohibition on Sale or Distribution of Electronic Cigarette Products. No Retailer that is  issued a new Permit after December 19, 2019June 30, 2020 shall Sell or Distribute  Electronic Cigarette Products after Permit issuance.  No Retailer that receives a Permit  renewal after December 19, 2019June 30, 2020 shall Sell or Distribute Electronic  Cigarette Products after Permit renewal.  Regardless of the date of Permit issuance or  renewal, no Retailer shall Sell or Distribute Electronic Cigarette Products after June 30,  2020.                   7 Sec. B11‐579  (1) Subsection (l) shall not apply to any Retailer of Tobacco Products (as such term was  defined in the predecessor Ordinance No. 5418) who the Department determines  meets the criteria of section 4.63.030(i)(3) of Ordinance No. 5418 as of June 30,  2020, and provided that the Retailer obtains a permit prior to July 1, 2020 pursuant  to sections 4.64.050 and 4.64.060, timely renews its permit pursuant to section  4.64.070(b), and has not had its permit revoked pursuant to section 4.64.130(g).   The exemption granted to a Retailer pursuant to this paragraph (1) shall cease to  apply upon the earlier of any of the following to occur:  (1) the Retailer fails to timely  renew the Permit pursuant to Section 4.64.070(b); or (2) a Retailer’s Permit is  revoked pursuant to Section 4.64.130(g).  The exemption in this paragraph (1) shall  continue to subsequent Retailers upon transfer of Ownership only if: (1) the  subsequent Retailer operates in the same location as the previous Retailer; (2) the  previous Retailer’s exemption did not cease due to failure to timely renew the  permit or permit revocation; (3) the previous Retailer’s Permit is valid on the date of  transfer of ownership to the subsequent Retailer; (4) the subsequent Retailer applies  for a Permit within 14 days of the transfer in ownership; and (5) the subsequent  Retailer is issued a Permit.      4.64.040.  Eligibility requirements for a Permit.       (a)  No Permit may be issued to authorize Retailing at or from other than a fixed location.  For example, Retailing by Persons on foot or from vehicles is prohibited.     (b)  No Permit may be issued to authorize Retailing at a temporary or recurring temporary  event. For example, Retailing at flea markets and farmers’ markets is prohibited.     (c)  No Permit may be issued to authorize Retailing at any location where the profession of  pharmacy is practiced by a pharmacist licensed by the State in accordance with the  Business and Professions Code and where prescription drugs are offered for Sale.    (d)  No Permit may be issued to authorize Retailing at any location within 1,000 feet of a  School, as measured by a straight line between any point along the property line of any  parcel on which a School is located and any point along the perimeter of the Permit  applicant’s proposed business location; provided, however, that the prohibition  contained in this subsection (d) shall not apply to the following:     (1) Any Retailer of Tobacco Products (as such term was defined in the predecessor  Ordinance on January 22, 2011No. 5418) operating lawfully on January 21,  2011;June 30, 2018 provided that the Retailer obtains a permit prior to July 1,  2020 pursuant to sections 4.64.050 and 4.64.060, and timely renews its permit  pursuant to section 4.64.070(b);     ///  8 (2) Any Retailer of electronic smoking devices (as such term was defined in the  predecessor Ordinance on August 23, 2014) operating lawfully on August 22,  2014; No. 5418) operating lawfully on June 30, 2018 provided that the Retailer  obtains a permit prior to July 1, 2020 pursuant to sections 4.64.050 and  4.64.060, and timely renews its permit pursuant to section 4.64.070(b); however,  any such Retailer is subject to the prohibition on the Sale and Distribution of  Electronic Cigarette Products established in B11‐578(lSection 4.64.030(l) unless  exempt by 4.64.030(l)(i); and     (3) Any lawfully operating Retailer of Tobacco Products that would otherwise  become ineligible to receive or renew a Permit due to the creation or relocation  of a School.     (e)  No Permit may be issued to authorize Retailing at a location which is within 500 feet of a  location occupied by another Retailer, as measured by a straight line between any point  along the perimeter of an existing Retailer’s business location and any point along the  perimeter of the Permit applicant’s proposed business location; provided, however, that  the prohibition contained in this subsection (e) shall not apply to:     (1)  Any Retailer of Tobacco Products (as such term was defined in the predecessor  Ordinance on January 22, 2011) No. 5418) operating lawfully on January 21,  2011;June 30, 2018 provided that the Retailer obtains a permit prior to July 1,  2020 pursuant to sections 4.64.050 and 4.64.060, and timely renews its permit  pursuant to section 4.64.070(b); and     (2)  Any Retailer of electronic smoking devices (as such term was defined in the  predecessor Ordinance on August 23, 2014) operating lawfully on August 22,  2014;No. 5418) operating lawfully on June 30, 2018 provided that the Retailer  obtains a permit prior to July 1, 2020 pursuant to sections 4.64.050 and  4.64.060, and timely renews its permit pursuant to section 4.64.070(b); however,  any such Retailer is subject to the prohibitionProhibition on the Sale and  Distribution of Electronic Cigarette Products established in B11‐578Section  4.64.030(l) unless exempt by 4.64.030(l)(i).     (f)  Any exemption granted to a Retailer pursuant to subsections (d) and (e) shall cease to  apply upon the earlier of the following to occur:     (1)  The Retailer fails to timely renew the Permit pursuant to Section B11‐ 5824.64.070(b) of this Chapter.    (2) A new Person obtainsRetailer’s Permit is revoked pursuant to Section  4.64.130(g).      9 (g)  Any exemption granted to a Retailer pursuant to subsections (d) and (e) shall continue  to subsequent Retailers upon transfer of Ownership only if: (1) the subsequent Retailer  operates in the same location as the previous Retailer; (2) the previous Retailer’s  exemption did not cease under subsection (f) of this Section; (3) the previous Retailer’s  Permit is valid on the date of transfer of ownership to the subsequent Retailer; (4) the  subsequent Retailer applies for a Permit within 14 days of the transfer in ownership;  and (5) the subsequent Retailer is issued a Permit.        Sec. B11‐5804.64.050.  Application procedure.       (a)  It is the responsibility of each Retailer to be informed of all laws applicable to Retailing,  including those laws affecting the issuance of a Permit.  No Retailer may rely on the  issuance of a Permit as a determination by the CountyCity that the Retailer has complied  with all laws applicable to Retailing.  A Permit issued contrary to this Chapter, contrary  to any other law, or on the basis of false or misleading information supplied by a  Retailer shall be revoked pursuant to Section B11‐5814.64.060 of this Chapter.     (b)  All Permit applications shall be submitted on a form supplied by the Department.     (c)  A permitted Retailer shall inform the Department in writing of any change in the  information submitted on an application for a Permit within 14 calendar days of a  change.     (d)  All information specified in an application pursuant to this section shall be subject to  disclosure under the California Public Records Act (Government Code Section 6250 et  seq.) or any other applicable law, subject to the laws’ exemptions.       Sec. B11‐5814.64.060.  Permit issuance, denial, and revocation.      (a)  Upon the receipt of a complete application for a Permit, the application fee, and the  annual Permit fee, the Department shall issue a Permit unless substantial evidence  demonstrates that one or more of the following bases for denial exists:     (1)  The information presented in the application is inaccurate or false.     (2)  The application seeks authorization for Retailing at a location for which this  Chapter prohibits issuance of a Permit.     (3)  The application seeks authorization for Retailing by a Person to whom this  Chapter prohibits issuance of a Permit.     (4)  The application seeks authorization for Retailing that is prohibited pursuant to  this Chapter (e.g., mobile vending, Electronic Cigarette Products) or that is  unlawful pursuant to any other law.   10   (b)  A Permit shall be revoked if the Department finds that one or more of the bases for  denial of a Permit under this section existed at the time application was made or at any  time before the Permit issued.  Such a revocation shall be without prejudice to the filing  of a new Permit application.        Sec. B11‐5824.64.070.  Permit term, renewal, and expiration.       (a)  Term of Permit.  The term of a Permit is one year.  A Permit is invalid upon expiration.     (b)  Renewal of Permit.  The Department shall renew a Permit upon timely payment of the  annual Permit fee provided that the Retailer is in compliance with this Chapter, as  amended.  The Department may, in its discretion, agree to renew any expired Permit  within the three‐month period following expiration if the Retailer pays the annual  Permit fee and applicable late charges.  For every calendar month, or fraction thereof,  that a Retailer fails to renew an expired Permit, a late charge equal to 20 percent of the  annual Permit fee shall be assessed.  A Permit renewed within three calendar months of  expiration shall be treated as if timely renewed.     (c)  Issuance of Permit after revocation or expiration of Permit.  To apply for a new Permit  more than three calendar months after expiration of a Permit or following revocation of  a Permit that was wrongly issued, a Retailer must submit a complete application for a  Permit, along with the application fee and annual Permit fee.  The Department shall  issue a Permit pursuant to the requirements of Section B11‐5814.64.060 of this  Chapter.       Sec. B11‐5834.64.080.  Permits nontransferable.       (a)  A Permit may not be transferred from one Person to another or from one location to  another. Whenever a new Person obtains Ownership in a business for which a Permit  has been issued, a new Permit shall be required, but any exemption granted pursuant to  Section B11‐579 of this Chapter shall cease to apply.     (b)  Notwithstanding any other provision of this Chapter, prior violations of this Chapter at a  location shall continue to be counted against a location and Permit ineligibility and  suspension periods shall continue to apply to a location unless:     (1)  One hundred percent of the interest in the stock, assets, or income of the  business, other than a security interest for the repayment of debt, has been  transferred to one or more new owners; and     (2)  The CountyCity is provided with clear and convincing evidence, including an  affidavit, that the business has been acquired in an Arm’s Length Transaction.       11 Sec. B11‐5844.64.090.  Permit conveys a limited, conditional privilege.       Nothing in this Chapter shall be construed to grant any Person obtaining and maintaining a  Permit any status or right other than the limited, conditional privilege to act as a Retailer at the  location in the CountyCity identified on the face of the Permit.  All Permits are issued subject to  the County’sCity’s right to amend this Chapter, and Retailers shall comply with all provisions of  this Chapter, as amended.        Sec. B11‐585  4.64.100.  Fees.       The Department shall not issue or renew a Permit prior to full payment of any applicable fees.  The Board of SupervisorsCity shall, from time to time, establish by resolution or ordinance the  fees to issue or to renew a Permit.  The fees shall be calculated so as to recover the cost of  administration and enforcement of this Chapter, including, for example, issuing a Permit,  administering the Permit program, Retailer education, Retailer inspection and compliance  checks, documentation of violations, and prosecution of violators, but shall not exceed the cost  of the regulatory program authorized by this Chapter.  All fees and interest earned from such  fees shall be used exclusively to fund administration and enforcement of this Chapter.     Sec. B11‐586  4.64.110.  Compliance monitoring.       (a)  Compliance with this Chapter shall be monitored by the Department.  In addition, any  peace officer may enforce the penal provisions of this Chapter.  The County  ExecutiveCity Manager may designate any number of additional individuals to monitor  and facilitate compliance with this Chapter.     (b)  The Department or other individuals designated to enforce the provisions of this  Chapter shall check each Retailer at least once per 12‐month period to determine if the  Retailer is complying with all laws applicable to Retailing, other than those laws  regulating underage access to Tobacco Products.  Nothing in this paragraph shall create  a right of action in any Retailer or other Person against the City, the County of Santa  Clara, or its agents.     Sec. B11‐5874.64.120.  Prevention of underage Sales.       (a)  The Public Health Department, Department of Environmental Health, or other  departments or individuals designated to enforce the provisions of this Chapter shall, in  conjunction with the Sheriff’s OfficePolice Department, check each Retailer at least  twiceonce per 12‐month period to determine whether the Retailer is conducting  business in a manner that complies with laws regulating youth access to Tobacco  Products. Nothing in this paragraph shall create a right of action in any Retailer or other  Person against the City, the County of Santa Clara, or its agents.   12   (b)  The CountyCity shall not enforce any law establishing a minimum age for Tobacco  Product purchases against an individual who otherwise might be in violation of such law  because of the individual’s age (“Youth Decoy”) if the potential violation occurs when:     (1)  The Youth Decoy is participating in a compliance check supervised by a peace  officer or a code enforcement official of the City or County of Santa Clara;     (2)  The Youth Decoy is acting as an agent of a Department or individual designated  by the City or County of Santa Clara to monitor compliance with this Chapter; or     (3)  The Youth Decoy is participating in a compliance check funded in part, either  directly or indirectly through subcontracting, by the City, the County of Santa  Clara, or the California Department of Public Health.     Sec. B11‐5884.64.130.  Penalties for a violation by a Retailer with a Permit.       (a)  Administrative fine.  In addition to any other penalty authorized by law, an  administrative fine shall be imposed and a Permit shall be suspended if any court of  competent jurisdiction determines, or the Department finds based on a preponderance  of the evidence that the Retailer, or any of the Retailer’s agents or employees, has  violated any of the requirements, conditions, or prohibitions of this Chapter, has pled  guilty, “no contest” or its equivalent to such a violation, or has admitted to a such a  violation.     (b)  Amount of fine.  The amount of the administrative fine for each such violation shall be  as follows:     (1)  A fine not to exceed $100.00 for a first violation within a 12‐month period;    (2)  A fine not to exceed $200.00 for a second violation within a 12‐month period;  and;    (3)  A fine not to exceed $500.00 for each additional violation within a 12‐month  period.     (c)  Time period for Permit suspension.  The period of the suspension shall be as follows:    (1)  For a first violation of this Chapter at a location within any 60‐month period, the  Permit shall be suspended for up to 30 calendar days.     (2)  For a second violation of this Chapter at a location within any 60‐month period,  the Permit shall be suspended for up to 90 calendar days.     13 (3)  For each additional violation of this Chapter at a location within any 60‐month  period, the Permit shall be suspended for up to one year.      (d)  Waiver of penalties for first violation. The Department may waive any penalties for a  Retailer’s first violation of any requirement, condition, or prohibition of this Chapter,  other than a violation of a law regulating youth access to Tobacco Products, if the  Retailer admits the violation in writing and agrees to forego a hearing on the allegations.  Regardless of the Department’s waiver of penalties for a first violation, the violation will  be considered in determining the penalties for any future violation.     (e)  Corrections period. The Department shall have discretion to allow a Retailer a period of  time to correct any violation of any requirement, condition, or prohibition of this  Chapter, other than a violation of a law regulating youth access to Tobacco Products.  If  the Department exercises its discretion to provide a corrections period, and a Retailer’s  violation is corrected within the time allowed for correction, no penalty shall be  imposed under this section.     (f) Written notice of penalties. Whenever a fine is issued and/or a Permit is suspended  based on a violation of this Chapter, the Department shall provide the Retailer written  notice of the violation and the fine and suspension, including when the suspension shall  take effect.      Sec. B11‐589  (g)  Revocation for Retailers of flavored Tobacco Products or Electronic Cigarette Products.   In addition to any other penalty authorized by law, a Permit shall be revoked and all  exemptions under sections 4.64.030(i)(4)(i), 4.64.030(l)(i), 4.64.040(d), and 4.64.040(e)  shall be lost, if any court of competent jurisdiction determines, or the Department finds  based on a preponderance of the evidence that any Retailer of flavored Tobacco  Products and/or Electronic Cigarette Products, or any of the Retailer’s agents or  employees, has pled guilty, “no contest” or its equivalent to the following  violations, or  has admitted to a such a violation, in any combination, on two or more occasions within  any 60‐month period: (1) a violation of section 4.64.030(k) (Prohibition on Sale or  Distribution of Tobacco Products to individuals under 21); and (2) a violation of any State  Executive Order or Order of the Health Officer of Santa Clara County, including publicly  operating in violation of such orders.  The Department shall provide the Retailer written  notice of the violations and revocation, including when the revocation shall take effect.        ///    ///    ///    14 4.64.140.  Penalties for Retailing without a Permit.       (a)  Administrative fine. In addition to any other penalty authorized by law, an  administrative fine and an ineligibility period for application or issuance of a Permit shall  be imposed if a court of competent jurisdiction determines, or the Department finds  based on a preponderance of evidence, that any Person has engaged in Retailing at a  location without a valid Permit, either directly or through the Person’s agents or  employees, has pled guilty, “no contest” or its equivalent to such a violation, or has  admitted to such a violation.     (b)  Amount of fine. The amount of the administrative fine for each such violation shall be as  follows:     (1)  A fine not to exceed $100.00 for a first violation within a 12‐month period;     (2)  A fine not to exceed $200.00 for a second violation within a 12‐month period;  and     (3)  A fine not to exceed $500.00 for each additional violation within a 12‐month  period.     (c)  Time period for Permit ineligibility.  The ineligibility period shall be as follows:    (1)  For a first violation of this section at a location within any 60‐month period, no  new Permit may be issued for the Person or the location (unless Ownership of  the business at the location has been transferred in an Arm’s Length Transaction)  until 30 calendar days have passed from the date of the violation.     (2)  For a second violation of this section at a location within any 60‐month period,  no new Permit may be issued for the Person or the location (unless Ownership of  the business at the location has been transferred in an Arm’s Length Transaction)  until 90 calendar days have passed from the date of the violation.     (3)  For each additional violation of this section at a location within any 60‐month  period, no new Permit may be issued for the Person or the location (unless  Ownership of the business at the location has been transferred in an Arm’s  Length Transaction) until one year has passed from the date of the violation.     (d)  Waiver of penalties for first violation. The Department may waive any penalties for a  Retailer’s first violation of this section, unless the violation also involves a violation of a  law regulating youth access to Tobacco Products, if the Retailer admits the violation in  writing and agrees to forego a hearing on the allegations. Regardless of the  Department’s waiver of penalties for a first violation, the violation will be considered in  determining the penalties for any future violation.   15   (e)  Written notice of penalties. Whenever a fine is issued and/or a Permit is suspended  pursuant to this section, the Department shall provide the Retailer written notice of the  fine and suspension, including when the suspension shall take effect.    (f) Appeals. Any penalties imposed under this section may be appealed pursuant to Section  B11‐5904.64.150 of this Chapter.  A timely appeal shall stay enforcement of the  appealed penalties while the appeal is ongoing.       Sec. B11‐5904.64.150.  Appeals.       (a) Any Retailer served with a written notice of penalties may request an administrative  hearing to appeal the existence of the violation, the amount of the fine, and/or the  length of the suspension by returning a completed hearing request form to the Office  of the County Hearing Officer (or City Clerk if violation is enforced by City) within 10  days from the date of the written notice of penalties.    (b) The Retailer shall include the following in or with the hearing request form:    (1) A statement indicating the reason the Retailer contests the written notice of  penalties;  (2) Any evidence the Retailer wants the Hearing Officer to consider;    (3) An advance deposit of the amount of any fine challenged; and    (4) The address of the Retailer and, if available, an email address that can be used  for contact and correspondence by the Office of the County Hearing Officer  (or City Clerk if violation is enforced by City) and the Department.  The  Retailer may request service of notice by mail.    (c) The hearing request form shall be deemed filed on the date received by the Office of  the County Hearing Officer. (or City Clerk if violation is enforced by City).  A timely  appeal shall stay enforcement of the appealed penalties while the appeal is ongoing.    (d) After receiving a timely hearing request form, the Office of the County Hearing Officer  (or City Clerk if violation is enforced by City) shall notify the Department as soon as  practicable and then shall schedule an administrative hearing.  The Office of the  County Hearing Officer (or City Clerk if violation is enforced by City) shall provide the  Retailer and the Department at least ten calendar days’ written notice of the date,  time, and place of the administrative hearing and the name of the Hearing Officer who  will conduct the hearing.  The notice shall be given to the Retailer either by email, if  requested, or by first class mail, postage prepaid.    16 (e) Between the time the Retailer requests the administrative hearing and the time of the  Hearing Officer’s decision, the Retailer, the Department, and each of their  representatives shall not engage in ex parte communications with the Office of the  County Hearing Officer (or City Clerk if violation is enforced by City) or the Hearing  Officer regarding the matters at issue in the hearing.    (f) The hearing shall be conducted by the Hearing Officer on the date, time, and place  specified in the notice to the Retailer.  A Retailer’s failure to appear at the hearing  shall constitute an abandonment of the hearing request and a failure to exhaust  administrative remedies as a precedent to judicially challenge the existence of the  violation and the imposition of the fine and suspension.    (g) At the hearing, the Retailer and the Department shall have the opportunity to present  evidence, including witnesses, relevant to the Hearing Officer’s determination of the  matter.  Neither the provisions of the Administrative Procedure Act (Government Code  Section 11500 et seq.) nor the formal rules of evidence in civil or criminal judicial  proceedings shall apply to such hearing.  The Hearing Officer may admit any evidence,  including witnesses, relevant to the determination of the matter, except as otherwise  provided in section B11‐591Section 4.64.160(c).     (h) The written notice of penalties and any other reports prepared by or for the  Department concerning the violation shall be admissible and accepted by the Hearing  Officer as prima facie evidence of the violation and the facts stated in those  documents.     (i) The Hearing Officer may continue the hearing from time to time, in his or her sole  discretion, to allow for its orderly completion.  After receiving the evidence submitted  at the hearing, the Hearing Officer may further continue the hearing and request  additional information from either the Department or the Retailer.    (j) After considering the evidence and testimony submitted the Hearing Officer shall issue  a written decision regarding the matters properly raised in the request for  administrative hearing. The Hearing Officer’s decision shall:    (1) Be based on a preponderance of the evidence.    (2) Include a statement of the reasons for the decision.    (3) Be issued within 20 calendar days of the close of the hearing.    (4) Be served on both the Retailer and the Department. The decision shall be given  to the Retailer either by email, if requested, or by first class mail, postage  prepaid.    17 (k) Based on the Hearing Officer’s decision, the Office of the County Hearing Officer (or  City’s Administrative Services Division if violation is enforced by City) shall promptly  refund to the Retailer any amount of the advance fine deposit the Department is not  entitled to and shall provide the remainder to the Department.    (l) The Hearing Officer’s written decision shall constitute the final administrative decision  of the CountyCity.      Sec. B11‐5914.64.160.  Enforcement.       (a)  Any violation of this Chapter is hereby declared to be a public nuisance.     (b)  Causing, permitting, aiding, abetting, or concealing a violation of any provision of this  Chapter shall also constitute a violation of this Chapter.     (c)  Whenever evidence of a violation of this Chapter is obtained in any part through the  participation of an individual under the age of 21 years old, such an individual shall not  be required over his or her objection to appear or give testimony in any civil or  administrative process brought to enforce this Chapter and the alleged violation shall be  adjudicated based upon the sufficiency and persuasiveness of the evidence presented.     (d)  Violations of this Chapter may be remedied by a civil action brought by the City Attorney  or Santa Clara County Counsel, including, but not limited to, administrative or judicial  nuisance abatement proceedings, civil code enforcement proceedings, and suits for  injunctive relief.  For the purposes of the civil remedies provided in this Chapter, each  day on which a Tobacco Product is offered for Sale in violation of this Chapter, and each  individual retail Tobacco Product that is Sold or Distributed in violation of this Chapter,  shall constitute a separate violation of this Chapter.     (e)  Any Person found guilty of violating any provision of this Chapter shall be deemed guilty  of an infraction, punishable as provided by California Government Code § 25132.     (f)  The remedies provided by this Chapter are cumulative and in addition to any other  remedies available at law or in equity.     Sec. B11‐592. ‐4.64.170.  No conflict with federal or state law.    Nothing in this Chapter shall be interpreted or applied so as to create any requirement, power,  or duty that is preempted by, or in conflict with, federal or state law, rules, or regulations.   *Not Yet Approved* 1 20200513_ts_24_206 Ordinance No. _____  Ordinance of the Council of the City of Palo Alto Amending Chapter 4.64  (Permits for Retailers of Tobacco Products) Of Title 4 (Business Licenses and  Regulations).   The Council of the City of Palo Alto ORDAINS as follows:   SECTION 1.  Findings and Declarations.  The City Council finds and declares as follows:  A.Electronic cigarettes, also known as e‐cigarettes, e‐vaporizers, or electronic nicotine delivery systems, are battery‐operated devices that people use to inhale an aerosol that typically contains nicotine.  In addition to nicotine, the aerosol from e‐cigarettes may include up to 31 other components, including formaldehyde, acetaldehyde, glycidol, acrolein, acetol, and diacetyl.  Several of these compounds are likely carcinogens, and acrolein is a powerful irritant.1  These products can resemble traditional tobacco cigarettes (cig‐a‐likes), cigars, or pipes, or even everyday items like pens or USB memory sticks.2  The pervasive use of these and other related Electronic Cigarette Products has given rise to a massive and multi‐faceted public health crisis. B.The Surgeon General has declared the use of e‐cigarettes among youth an “epidemic.” There is an extensive and rapidly growing body of evidence supporting that characterization.  For instance: i.E‐cigarette companies use marketing strategies to target youth.  In 2014, 18 million (7 out of 10) middle and high school students were exposed to e‐ cigarette ads.3 ii.E‐cigarettes are marketed in a variety of flavors that appeal to youth, including gummy bear, birthday cake, cotton candy, and fruit punch. ///  ///  1  Centers for Disease Control and Prevention.  Cigarette Use Among Youth and Young Adults: A Report of the  Surgeon General (2016). https://www.cdc.gov/tobacco/data_statistics/sgr/e‐cigarettes/index.htm.  2  National Institute on Drug Abuse.  Electronic Cigarettes (E‐cigarettes) (2019).  https://www.drugabuse.gov/publications/drugfacts/electronic‐cigarettes‐e‐cigarettes; Breland A, Soule E, Lopez A,  Ramôa C, El‐Hellani A, Eissenberg T. Electronic cigarettes: what are they and what do they do? Ann N Y Acad Sci.  2017;1394(1):5‐30. doi:10.1111/nyas.12977.  3  Centers for Disease Control and Prevention.  E‐cigarette Ads and Youth (2017).  https://www.cdc.gov/vitalsigns/ecigarette‐ads/index.html.  Attachment D- Final Copy of the Proposed Tobacco Retail Permit Ordinance *Not Yet Approved*  2 20200513_ts_24_206 iii. While youth use of combustible cigarettes has decreased dramatically, e‐ cigarette use—or “vaping”—among middle and high school students increased  by 78 percent between 2017 and 2018, with over 4 million kids currently using e‐ cigarettes in 2018.4    iv. The proportion of current e‐cigarette users in high school who reported use on  20 days or more in the past 30‐day period increased from 20 percent in 2017 to  27.7 percent in 2018.5    v. In 2019, the national prevalence of e‐cigarette use during the previous 30 days  was more than 1 in 4 students in the 12th grade, more than 1 in 5 in the 10th  grade, and more than 1 in 11 in the 8th grade.6    vi. Use of e‐cigarettes among undergraduate college students increased from 4.9  percent to 10.1 percent between 2017 and 2018.7    vii. There was a 46.2 percent increase in current e‐cigarette use between 2017 and  2018 among young adults.8    viii. Adolescents obtain e‐cigarettes from a variety of sources.  The most common  sources are: purchasing from a store or online (31.1 percent); buying from  another person (16.3 percent); and giving someone money to purchase for them  (15.0 percent).9     ///  4  Cullen KA, Ambrose BK, Gentzke AS, Apelberg BJ, Jamal A, King BA. Use of Electronic Cigarettes and Any Tobacco  Product Among Middle and High School Students—United States, 2011–2018. MMWR Morb Mortal Wkly Rep.  2018;67(45):1276‐1277. doi:10.15585/mmwr.mm6745a5.    5  Cullen KA, Ambrose BK, Gentzke AS, Apelberg BJ, Jamal A, King BA. Use of Electronic Cigarettes and Any Tobacco  Product Among Middle and High School Students—United States, 2011–2018. MMWR Morb Mortal Wkly Rep.  2018;67(45):1276‐1277. doi:10.15585/mmwr.mm6745a5.     6  Miech R, Johnston L, O’Malley PM, Bachman JG, Patrick ME. Trends in Adolescent Vaping, 2017–2019. N Engl J  Med. September 2019:NEJMc1910739. doi:10.1056/NEJMc1910739.    7  Compare American College Health Association‐National College Health Assessment II: Undergraduate Student  Reference Group Executive Summary Spring 2018. Silver Spring, MD: American College Health Association with  American College Health Association‐National College Health Assessment II: Reference Group Undergraduate  Executive Summary Spring 2017. Hanover, MD: American College Health Association.  8  Dai H, Leventhal AM. Prevalence of e‐Cigarette Use Among Adults in the United States, 2014‐2018. JAMA.  September 2019. doi:10.1001/jama.2019.15331.    9  Pepper JK, Coats EM, Nonnemaker JM, Loomis BR. How Do Adolescents Get Their E‐Cigarettes and Other  Electronic Vaping Devices? Am J Health Promot. 2019;33(3):420‐429. doi:10.1177/0890117118790366.  *Not Yet Approved*  3 20200513_ts_24_206 C. Nearly 1 in 3 Santa Clara County teens—31.6 percent—report that they have used an e‐ cigarette at least once.  Most teens obtained their e‐cigarettes from “social sources,”  while around 45 percent reported purchasing their own e‐cigarettes (with over a  quarter of this group saying they buy them directly from a local store).10    D. E‐cigarettes have severe adverse health effects for both youth and adults.    i. According to the Surgeon General, “[m]ost e‐cigarettes contain nicotine—the  addictive drug in regular cigarettes, cigars, and other tobacco products. Nicotine  exposure during adolescence can harm the developing brain—which continues  to develop until about age 25. Nicotine exposure during adolescence can impact  learning, memory, and attention.  Using nicotine in adolescence can also  increase risk for future addiction to other drugs.  In addition to nicotine, the  aerosol that users inhale and exhale from e‐cigarettes can potentially expose  both themselves and bystanders to other harmful substances, including heavy  metals, volatile organic compounds, and ultrafine particles that can be inhaled  deeply into the lungs.”11    ii. E‐cigarette use can also play a role in adolescent social maladjustment, including  poor learning and academic performance, increased aggressive and impulsive  behavior, poor sleep quality, attention deficits, impaired memory, cognition, and  increased depression and suicidal ideation.12    iii. Daily e‐cigarette use is associated with increased risk of irreversible  cardiovascular and lung disease through the inhalation of harmful chemicals.13    iv. Secondhand emissions from e‐cigarettes are also dangerous because they  contain “nicotine; ultrafine particles; flavorings such as diacetyl, a chemical  10  Zhu S‐H, Lee J, Zhuang YL, Branden K, Cole A, Wolfson T, Gamst A (2019). Tobacco use among high school  students in Santa Clara County: Findings from the 2017‐18 California Student Tobacco Survey. San Diego,  California: Center for Research and Intervention in Tobacco Control (CRITC), University of California, San Diego.   11  Surgeon General’s Advisory on E‐cigarette Use Among Youth (2008).  https://e‐ cigarettes.surgeongeneral.gov/documents/surgeon‐generals‐advisory‐on‐e‐cigarette‐use‐among‐youth‐2018.pdf.    12  Tobore TO. On the potential harmful effects of E‐Cigarettes (EC) on the developing brain: The relationship  between vaping‐induced oxidative stress and adolescent/young adults social maladjustment. J Adolesc. 2019;  76:202‐209. doi:10.1016/j.adolescence.2019.09.004.    13  American Lung Association.  The Impact of E‐Cigarettes on the Lung (2011).  https://www.lung.org/stop‐ smoking/smoking‐facts/impact‐of‐e‐cigarettes‐on‐lung.html; Bein K, Leikauf GD. Acrolein ‐ a pulmonary hazard.  Mol Nutr Food Res 55(9):1342‐60. doi: 10.1002/mnfr.201100279.    *Not Yet Approved*  4 20200513_ts_24_206 linked to serious lung disease; volatile organic compounds such as benzene,  which is found in car exhaust; and heavy metals, such as nickel, tin, and lead.”14    v. E‐cigarette use is dangerous for pregnant women and is a fetal risk factor.  It is  associated with an increased risk of smallness‐for‐gestational‐age.15    E. In addition to these negative long‐term health effects, e‐cigarette use is now associated  with a wave of dangerous, life‐threatening illnesses.     i. As of October 15, 2019, 1,479 cases of acute lung injury associated with the use  of e‐cigarette or vaping products in 49 states, the District of Columbia, and 1 U.S.  territory have been reported to the Centers for Disease Control and Prevention  (CDC).  Thirty‐three deaths have been confirmed in 24 states.16    ii. Since the CDC’s August 30, 2019 Official Health Advisory,17 there have been two  reported cases of lung injury associated with e‐cigarettes in Santa Clara County.   One of these cases was in an adolescent, and both individuals required  hospitalization.    F. Other risks and injuries are attributable to the proliferation of e‐cigarettes:     i. E‐cigarettes present a poison risk for children. From 2013 to 2017, an estimated  4,745 e‐liquid poisoning cases among children under age five were treated in  U.S. hospital emergency departments.18    ii. E‐cigarettes present a risk of burns and other injuries, usually from malfunctioning  batteries.  From 2015 to 2017, there were an estimated 2,035 e‐cigarette  explosion and burn injuries reported in U.S. hospital emergency rooms.19  14  American Lung Association.  The Impact of E‐Cigarettes on the Lung (2011).  https://www.lung.org/stop‐ smoking/smoking‐facts/impact‐of‐e‐cigarettes‐on‐lung.html.  15  Cardenas V, Cen R, Clemens M, et al. Use of Electronic Nicotine Delivery Systems (ENDS) by pregnant women I:  Risk of small‐for‐gestational‐age birth. Tob Induc Dis. 2019;17(May). doi:10.18332/tid/106089    16  Centers for Disease Control and Prevention. Outbreak of Lung Injury Associated with E‐cigarette Use, or Vaping.  October (2019). https://www.cdc.gov/tobacco/basic_information/e‐cigarettes/severe‐lung‐disease.html.    17  Centers for Disease Control and Prevention Official Health Advisory.  Severe Pulmonary Disease Associated with  Using E‐Cigarette Products (Aug. 30, 2019).  https://emergency.cdc.gov/han/han00421.asp.    18  Chang JT, Wang B, Chang CM, Ambrose BK. National estimates of poisoning events related to liquid nicotine in  young children treated in US hospital emergency departments, 2013–2017. Inj Epidemiol. 2019;6(1):10.  doi:10.1186/s40621‐019‐0188‐9.  19  Rossheim ME, Livingston MD, Soule EK, Zeraye HA, Thombs DL. Electronic cigarette explosion and burn injuries,  US Emergency Departments 2015‐2017. Tob Control. 2019;28(4):472‐474. doi:10.1136/tobaccocontrol‐2018‐ 054518.  *Not Yet Approved*  5 20200513_ts_24_206 G. While the e‐cigarette industry claims that its products help people quit smoking  combustible cigarettes, the evidence shows that e‐cigarette use is actually associated  with increased risk of cigarette initiation, particularly among low‐risk youths.20    i. Use of e‐cigarettes was most common among smokers, and dual users had the  highest prevalence of respiratory symptoms.  On a population level, this  indicates that the present use of e‐cigarettes does not adequately serve as a  smoking cessation tool.21    ii. E‐cigarettes are not commonly used as a quit tool among college students, but  rather as a secondary source of nicotine, most commonly in current smokers.22    iii. Of adults and young adults over 18 who use e‐cigarettes, around 63 percent  typically use non‐tobacco flavored e‐cigarettes, while over a third typically use  tobacco‐flavored or unflavored e‐cigarettes.23    H. Open e‐cigarette systems are customizable by consumers and often allow for potential  “unorthodox” use of the product.  These modifications include altering mechanical  components and replacing liquid cartridges with dangerous off‐market or illegal  substances.24  Customization is one of the most popular social media topics for e‐ cigarettes.25    ///    ///  20  Berry KM, Fetterman JL, Benjamin EJ, et al. Association of Electronic Cigarette Use With Subsequent Initiation of  Tobacco Cigarettes in US Youths. JAMA Netw Open. Published online February 01, 2019;2(2):e187794.  doi:10.1001/jamanetworkopen.2018.7794.    21  Hedman L, Backman H, Stridsman C, et al. Association of Electronic Cigarette Use With Smoking Habits,  Demographic Factors, and Respiratory Symptoms. JAMA Netw Open. 2018;1(3):e180789.  doi:10.1001/jamanetworkopen.2018.0789.    22  Martinasek MP, Bowersock A, Wheldon CW. Patterns, Perception and Behavior of Electronic Nicotine Delivery  Systems Use and Multiple Product Use Among Young Adults. Respir Care. 2018;63(7):913‐919.  doi:10.4187/respcare.06001.    23  Landry RL, Groom AL, Vu T‐HT, et al. The role of flavors in vaping initiation and satisfaction among U.S. adults.  Addict Behav. 2019;99:106077. doi:10.1016/j.addbeh.2019.106077.   24  Guy MC, Helt J, Palafox S, et al. Orthodox and Unorthodox Uses of Electronic Cigarettes: A Surveillance of  YouTube Video Content. Nicotine Tob Res. 2019;21(10):1378‐1384. doi:10.1093/ntr/nty132.    25  Lee A, Hart J, Sears C, Walker K, Siu A, Smith C. A picture is worth a thousand words: Electronic cigarette content  on Instagram and Pinterest. Tob Prev Cessat. 2017;3(July). doi:10.18332/tpc/74709.  *Not Yet Approved*  6 20200513_ts_24_206  SECTION 2.  Chapter 4.64 (Permits for Retailers of Tobacco Products) of Title 4  (Business Licenses and Regulations) is hereby amended and restated as follows:      CHAPTER 4.64.  PERMITS FOR RETAILERS OF TOBACCO PRODUCTS    4.64.010.  Intent.     This Chapter is adopted to:     (1) Ensure compliance with the business standards and practices of the County;     (2)        Encourage responsible retailing of Tobacco Products;     (3)        Discourage violations of laws related to Tobacco Products, especially those that  prohibit or discourage the Sale or Distribution of Tobacco Products to individuals  under 21;     (4) Respond to a new wave of addiction to Electronic Cigarette Products;     (5) Reduce vulnerability to unexplained illnesses associated with Electronic Cigarette  Products; and    (6)   Protect the public health and welfare.     This Chapter does not expand or reduce the degree to which the acts regulated by federal or  state law are criminally proscribed or alter the penalties provided by such laws.     4.64.020.  Definitions.     For the purposes of this Chapter, the following definitions shall apply:     (a) Arm’s Length Transaction means a Sale in good faith and for valuable consideration that  reflects the fair market value in the open market between two or more informed and  willing parties, neither of which is under any compulsion to participate in the  transaction. A Sale between relatives, related companies or partners, or a Sale for which  a significant purpose is avoiding the effect of the violations of this Chapter is not an  Arm’s Length Transaction.     (b) Department means any department of the City of Palo Alto or County of Santa Clara  designated by the City Manager to enforce or administer this Chapter, including the  County of Santa Clara’s Department of Environmental Health and any agency or Person  designated by the Director of the Department of Environmental Health to enforce or  administer the provisions of this Chapter.   *Not Yet Approved*  7 20200513_ts_24_206 (c) Distribute or Distribution means the transfer, by any Person other than a common  carrier, of a Tobacco Product to another Person for Sale or personal consumption.      (d) Electronic Cigarette Products means any of the following products:    (1) Any device or delivery system that can be used to deliver nicotine in aerosolized  or vaporized form, including, but not limited to, an e‐cigarette, e‐cigar, e‐pipe,  vape pen, or e‐hookah.     (2) Any component, part, or accessory of such a device or delivery system that is  used during its operation.      (3) Any flavored or unflavored liquid or substance containing nicotine, whether Sold  separately or Sold in combination with any device or delivery system that could  be used to deliver nicotine in aerosolized or vaporized form.     (4) Any product for use in an electronic nicotine device or delivery system whether  or not it contains nicotine or tobacco or is derived from nicotine or tobacco.    (5) Electronic Cigarette Products shall not include any battery, battery charger,  carrying case, or other accessory not used in the operation of the device if Sold  separately.  Electronic Cigarette Products shall not include any product that has  been approved by the United States Food and Drug Administration for Sale as a  tobacco cessation product or for other therapeutic purposes where that product  is marketed and Sold solely for such approved use.  See 21 U.S.C. § 387(a).  As  used in this subsection, nicotine does not include any food products as that term  is defined pursuant to Section 6359 of the California Revenue and Taxation Code.    (e) Ownership means possession of a ten percent or greater interest in the stock, assets, or  income of a business, other than a security interest for the repayment of  debt.  Notwithstanding any other definition in this Code, an Owner means a Person who  possesses Ownership.      (f) Permit means a valid permit issued by the Department to a Person to act as a Retailer.    (g) Retailer means any Person who Sells or Distributes Tobacco Products for any form of  consideration.  Retailing shall mean the doing of any of these actions.  This definition is  without regard to the quantity of Tobacco Products Sold or Distributed.     (h) School means a public or private elementary, middle, junior high, or high school.     (i) Sale and Sold includes any sale, exchange, barter or offer for sale.    *Not Yet Approved*  8 20200513_ts_24_206 (j) Tobacco Product means (unless specifically noted elsewhere) any product subject to  Subchapter IX (21 U.S.C. § 387 et seq. (“Subchapter IX”)) of the Federal Food, Drug, and  Cosmetic Act.  (See 21 U.S.C. § 387a(b) (products subject to Subchapter IX); 21 C.F.R. §§  1100.1‐1100.3 (tobacco products subject to Subchapter IX).)  Products subject to  Subchapter IX include, but are not limited to, cigarettes, cigarette tobacco, roll‐your‐ own tobacco, smokeless tobacco, cigars, pipe tobacco, waterpipe tobacco, and  Electronic Cigarette Products.  Products that are not subject to Subchapter IX include  accessories of Tobacco Products, such as, but not limited to, ashtrays, spittoons, and  conventional matches and lighters that solely provide an external heat source to initiate  but not maintain combustion of a Tobacco Product.      4.64.030.  Requirements and prohibitions.       (a) Permit required. It shall be unlawful for any Person to act as a Retailer without first  obtaining and maintaining a Permit pursuant to this Chapter for each location at which  Retailing occurs.     (b) Lawful business operation. It shall be a violation of this Chapter for any Retailer to  violate any local, state, or federal law applicable to Tobacco Products or the Retailing of  such Tobacco Products.     (c) Display of Permit. Each Permit shall be prominently displayed in a publicly visible place  at the location identified in the Permit.     (d) Notice of minimum age for purchase of Tobacco Products. Retailers shall post  conspicuously, at each point of purchase, a notice stating that selling Tobacco Products  to anyone under 21 years of age is illegal and subject to penalties. Such notice shall be  subject to the approval of the Public Health Department.     (e) Positive identification required. No Retailer shall Sell or Distribute a Tobacco Product to  another individual who appears to be under 30 years of age without first examining the  individual’s identification to confirm that the individual is at least the minimum age  required under state law to purchase and possess the Tobacco Product.     (f) Minimum age for individuals selling Tobacco Products. No individual who is younger  than the minimum age established by State law for the purchase or possession of  Tobacco Products shall engage in Retailing.    (g) False and misleading advertising prohibited. A Retailer without a Permit:     (1) Shall keep all Tobacco Products out of public view.     (2) Shall not display any advertisement relating to Tobacco Products that promotes  the Sale or Distribution of such products from the Retailer’s location or that  *Not Yet Approved*  9 20200513_ts_24_206 could lead a reasonable consumer to believe that Tobacco Products can be  obtained at that location.     (h) Limitation on storefront advertising. No more than 15 percent of the square footage of  the windows and clear doors of a physical storefront used for Retailing Tobacco  Products shall bear advertising or signs of any sort, and all advertising and signage shall  be placed and maintained in a manner that ensures that law enforcement personnel  have a clear and unobstructed view of the interior of the premises, including the area in  which the cash registers are maintained, from the exterior public sidewalk or entrance  to the premises. However, this latter requirement of this subsection (h) shall not apply  to an establishment where there are no windows or clear doors, or where existing  windows are located only at a height that precludes a view of the interior of the  premises by an individual standing outside the premises.     (i) Flavored Tobacco Products.      (1) Except as permitted in paragraph (3) of this subsection (i), no Retailer shall Sell a  Tobacco Product containing, as a constituent or additive, an artificial or natural  flavor or aroma (other than tobacco) or an herb or spice, including but not limited  to strawberry, grape, orange, clove, cinnamon, pineapple, vanilla, coconut,  licorice, cocoa, chocolate, cherry, mint, menthol, or coffee, that is a characterizing  flavor or aroma of the Tobacco Product, smoke, or vapor produced by the  Tobacco Product.       (2) A Tobacco Product shall be subject to a rebuttable presumption that the product  is prohibited by paragraph (1) of this subsection if:     (i) The product’s manufacturer or any other Person associated with the  manufacture or Sale of Tobacco Products makes or disseminates public  statements or claims to the effect that the product has or produces a  characterizing flavor or aroma, other than tobacco; or     (ii) The product’s label, labeling, or packaging includes a statement or  claim—including any text and/or images used to communicate  information—that the product has or produces a characterizing flavor or  aroma, other than tobacco.    (3) Except as provided in Paragraph (4) of this subsection (i), Paragraph (1) of this  subsection (i) shall not apply to any Retailer that meets all the following criteria:     (i) Primarily sells Tobacco Products;     (ii) Generates more than 60 percent of its gross revenues annually from the  Sale of Tobacco Products;   *Not Yet Approved*  10 20200513_ts_24_206 (iii) Does not permit any individual under 21 years of age to be present or  enter the premises at any time;     (iv) Does not Sell alcoholic beverages or food for consumption on the  premises; and     (v) Posts a sign outside the retail location that clearly, sufficiently, and  conspicuously informs the public that individuals under 21 years of age  are prohibited from entering the premises;    (vi) Posts a staff person adjacent to all public entrances to the premises and  verifies an individual’s age upon entering using the same standards as  section 4.63.030(e) (Positive identification required).  The staff person  may be located inside or outside the entrance.      (4) No Retailer that is issued a new Permit after June 30, 2020 shall Sell or Distribute  flavored Tobacco Products under paragraph (3) of this subsection (i) after Permit  issuance.  No Retailer that receives a Permit renewal after June 30, 2020 shall  Sell or Distribute flavored Tobacco Products under paragraph (3) of this  subsection (i) after Permit renewal.  Regardless of the date of Permit issuance or  renewal, no Retailer shall Sell or Distribute flavored Tobacco Products after June  30, 2020.     (i) Paragraph (4) of subsection (i) shall not apply to any Retailer of Tobacco  Products (as such term was defined in the predecessor Ordinance No.  5418) who the Department determines meets the criteria of section  4.63.030(i)(3) of Ordinance No. 5418 as of June 30, 2020, and provided  that the Retailer obtains a permit prior to July 1, 2020 pursuant to  sections 4.64.050 and 4.64.060, timely renews its permit pursuant to  section 4.64.070(b), and has not had its permit revoked pursuant to  section 4.64.130(g).  The exemption granted to a Retailer pursuant to this  subparagraph (i) shall cease to apply upon the earlier of any of the  following to occur:  (1) the Retailer fails to timely renew the Permit  pursuant to Section 4.64.070(b); or (2) a Retailer’s Permit is revoked  pursuant to Section 4.64.130(g).  The exemption in this subparagraph  shall continue to subsequent Retailers upon transfer of Ownership only if:  (1) the subsequent Retailer operates in the same location as the previous  Retailer; (2) the previous Retailer’s exemption did not cease due to  failure to timely renew the permit or permit revocation; (3) the previous  Retailer’s Permit is valid on the date of transfer of ownership to the  subsequent Retailer; (4) the subsequent Retailer applies for a Permit  within 14 days of the transfer in ownership; and (5) the subsequent  Retailer is issued a Permit.    *Not Yet Approved*  11 20200513_ts_24_206 (j) Vending machines prohibited. No Tobacco Product shall be Sold or Distributed to the  public from a vending machine or appliance, or any other coin or token operated  mechanical device designed or used for vending purposes, including, but not limited to,  machines or devices that use remote control locking mechanisms.     (k) Prohibition on Sale or Distribution of Tobacco Products to individuals under 21. No  Retailer shall Sell or Distribute any Tobacco Product to any individual who is under  21 years of age.    (l) Prohibition on Sale or Distribution of Electronic Cigarette Products. No Retailer that is  issued a new Permit after June 30, 2020 shall Sell or Distribute Electronic Cigarette  Products after Permit issuance.  No Retailer that receives a Permit renewal after June  30, 2020 shall Sell or Distribute Electronic Cigarette Products after Permit renewal.   Regardless of the date of Permit issuance or renewal, no Retailer shall Sell or Distribute  Electronic Cigarette Products after June 30, 2020.      (1) Subsection (l) shall not apply to any Retailer of Tobacco Products (as such term was  defined in the predecessor Ordinance No. 5418) who the Department determines  meets the criteria of section 4.63.030(i)(3) of Ordinance No. 5418 as of June 30,  2020, and provided that the Retailer obtains a permit prior to July 1, 2020 pursuant  to sections 4.64.050 and 4.64.060, timely renews its permit pursuant to section  4.64.070(b), and has not had its permit revoked pursuant to section 4.64.130(g).   The exemption granted to a Retailer pursuant to this paragraph (1) shall cease to  apply upon the earlier of any of the following to occur:  (1) the Retailer fails to timely  renew the Permit pursuant to Section 4.64.070(b); or (2) a Retailer’s Permit is  revoked pursuant to Section 4.64.130(g).  The exemption in this paragraph (1) shall  continue to subsequent Retailers upon transfer of Ownership only if: (1) the  subsequent Retailer operates in the same location as the previous Retailer; (2) the  previous Retailer’s exemption did not cease due to failure to timely renew the  permit or permit revocation; (3) the previous Retailer’s Permit is valid on the date of  transfer of ownership to the subsequent Retailer; (4) the subsequent Retailer applies  for a Permit within 14 days of the transfer in ownership; and (5) the subsequent  Retailer is issued a Permit.      4.64.040.  Eligibility requirements for a Permit.       (a)  No Permit may be issued to authorize Retailing at or from other than a fixed location.  For example, Retailing by Persons on foot or from vehicles is prohibited.     (b)  No Permit may be issued to authorize Retailing at a temporary or recurring temporary  event. For example, Retailing at flea markets and farmers’ markets is prohibited.     *Not Yet Approved*  12 20200513_ts_24_206 (c)  No Permit may be issued to authorize Retailing at any location where the profession of  pharmacy is practiced by a pharmacist licensed by the State in accordance with the  Business and Professions Code and where prescription drugs are offered for Sale.    (d)  No Permit may be issued to authorize Retailing at any location within 1,000 feet of a  School, as measured by a straight line between any point along the property line of any  parcel on which a School is located and any point along the perimeter of the Permit  applicant’s proposed business location; provided, however, that the prohibition  contained in this subsection (d) shall not apply to the following:     (1) Any Retailer of Tobacco Products (as such term was defined in the predecessor  Ordinance No. 5418) operating lawfully on June 30, 2018 provided that the  Retailer obtains a permit prior to July 1, 2020 pursuant to sections 4.64.050 and  4.64.060, and timely renews its permit pursuant to section 4.64.070(b);     (2) Any Retailer of electronic smoking devices (as such term was defined in the  predecessor Ordinance No. 5418) operating lawfully on June 30, 2018 provided  that the Retailer obtains a permit prior to July 1, 2020 pursuant to sections  4.64.050 and 4.64.060, and timely renews its permit pursuant to section  4.64.070(b); however, any such Retailer is subject to the prohibition on the Sale  and Distribution of Electronic Cigarette Products established in Section  4.64.030(l) unless exempt by 4.64.030(l)(i); and     (3) Any lawfully operating Retailer of Tobacco Products that would otherwise  become ineligible to receive or renew a Permit due to the creation or relocation  of a School.     (e)  No Permit may be issued to authorize Retailing at a location which is within 500 feet of a  location occupied by another Retailer, as measured by a straight line between any point  along the perimeter of an existing Retailer’s business location and any point along the  perimeter of the Permit applicant’s proposed business location; provided, however, that  the prohibition contained in this subsection (e) shall not apply to:     (1)  Any Retailer of Tobacco Products (as such term was defined in the predecessor  Ordinance No. 5418) operating lawfully on June 30, 2018 provided that the  Retailer obtains a permit prior to July 1, 2020 pursuant to sections 4.64.050 and  4.64.060, and timely renews its permit pursuant to section 4.64.070(b); and     (2)  Any Retailer of electronic smoking devices (as such term was defined in the  predecessor Ordinance No. 5418) operating lawfully on June 30, 2018 provided  that the Retailer obtains a permit prior to July 1, 2020 pursuant to sections  4.64.050 and 4.64.060, and timely renews its permit pursuant to section  4.64.070(b); however, any such Retailer is subject to the Prohibition on the Sale  *Not Yet Approved*  13 20200513_ts_24_206 and Distribution of Electronic Cigarette Products established in Section  4.64.030(l) unless exempt by 4.64.030(l)(i).     (f)  Any exemption granted to a Retailer pursuant to subsections (d) and (e) shall cease to  apply upon the earlier of the following to occur:     (1)  The Retailer fails to timely renew the Permit pursuant to Section 4.64.070(b) of  this Chapter.    (2) A Retailer’s Permit is revoked pursuant to Section 4.64.130(g).      (g)  Any exemption granted to a Retailer pursuant to subsections (d) and (e) shall continue  to subsequent Retailers upon transfer of Ownership only if: (1) the subsequent Retailer  operates in the same location as the previous Retailer; (2) the previous Retailer’s  exemption did not cease under subsection (f) of this Section; (3) the previous Retailer’s  Permit is valid on the date of transfer of ownership to the subsequent Retailer; (4) the  subsequent Retailer applies for a Permit within 14 days of the transfer in ownership;  and (5) the subsequent Retailer is issued a Permit.      4.64.050.  Application procedure.     (a)  It is the responsibility of each Retailer to be informed of all laws applicable to Retailing,  including those laws affecting the issuance of a Permit.  No Retailer may rely on the  issuance of a Permit as a determination by the City that the Retailer has complied with  all laws applicable to Retailing.  A Permit issued contrary to this Chapter, contrary to any  other law, or on the basis of false or misleading information supplied by a Retailer shall  be revoked pursuant to Section 4.64.060 of this Chapter.     (b)  All Permit applications shall be submitted on a form supplied by the Department.     (c)  A permitted Retailer shall inform the Department in writing of any change in the  information submitted on an application for a Permit within 14 calendar days of a  change.     (d)  All information specified in an application pursuant to this section shall be subject to  disclosure under the California Public Records Act (Government Code Section 6250 et  seq.) or any other applicable law, subject to the laws’ exemptions.     4.64.060.  Permit issuance, denial, and revocation.    (a)  Upon the receipt of a complete application for a Permit, the application fee, and the  annual Permit fee, the Department shall issue a Permit unless substantial evidence  demonstrates that one or more of the following bases for denial exists:     *Not Yet Approved*  14 20200513_ts_24_206 (1)  The information presented in the application is inaccurate or false.     (2)  The application seeks authorization for Retailing at a location for which this  Chapter prohibits issuance of a Permit.     (3)  The application seeks authorization for Retailing by a Person to whom this  Chapter prohibits issuance of a Permit.     (4)  The application seeks authorization for Retailing that is prohibited pursuant to  this Chapter (e.g., mobile vending, Electronic Cigarette Products) or that is  unlawful pursuant to any other law.     (b)  A Permit shall be revoked if the Department finds that one or more of the bases for  denial of a Permit under this section existed at the time application was made or at any  time before the Permit issued.  Such a revocation shall be without prejudice to the filing  of a new Permit application.     4.64.070.  Permit term, renewal, and expiration.     (a)  Term of Permit.  The term of a Permit is one year.  A Permit is invalid upon expiration.     (b)  Renewal of Permit.  The Department shall renew a Permit upon timely payment of the  annual Permit fee provided that the Retailer is in compliance with this Chapter, as  amended.  The Department may, in its discretion, agree to renew any expired Permit  within the three‐month period following expiration if the Retailer pays the annual  Permit fee and applicable late charges.  For every calendar month, or fraction thereof,  that a Retailer fails to renew an expired Permit, a late charge equal to 20 percent of the  annual Permit fee shall be assessed.  A Permit renewed within three calendar months of  expiration shall be treated as if timely renewed.     (c)  Issuance of Permit after revocation or expiration of Permit.  To apply for a new Permit  more than three calendar months after expiration of a Permit or following revocation of  a Permit that was wrongly issued, a Retailer must submit a complete application for a  Permit, along with the application fee and annual Permit fee.  The Department shall  issue a Permit pursuant to the requirements of Section 4.64.060 of this Chapter.     4.64.080.  Permits nontransferable.     (a)  A Permit may not be transferred from one Person to another or from one location to  another. Whenever a new Person obtains Ownership in a business for which a Permit  has been issued, a new Permit shall be required.     *Not Yet Approved*  15 20200513_ts_24_206 (b)  Notwithstanding any other provision of this Chapter, prior violations of this Chapter at a  location shall continue to be counted against a location and Permit ineligibility and  suspension periods shall continue to apply to a location unless:     (1)  One hundred percent of the interest in the stock, assets, or income of the  business, other than a security interest for the repayment of debt, has been  transferred to one or more new owners; and     (2)  The City is provided with clear and convincing evidence, including an affidavit,  that the business has been acquired in an Arm’s Length Transaction.     4.64.090.  Permit conveys a limited, conditional privilege.     Nothing in this Chapter shall be construed to grant any Person obtaining and maintaining a  Permit any status or right other than the limited, conditional privilege to act as a Retailer at the  location in the City identified on the face of the Permit.  All Permits are issued subject to the  City’s right to amend this Chapter, and Retailers shall comply with all provisions of this Chapter,  as amended.      4.64.100.  Fees.     The Department shall not issue or renew a Permit prior to full payment of any applicable fees.  The City shall, from time to time, establish by resolution or ordinance the fees to issue or to  renew a Permit.  The fees shall be calculated so as to recover the cost of administration and  enforcement of this Chapter, including, for example, issuing a Permit, administering the Permit  program, Retailer education, Retailer inspection and compliance checks, documentation of  violations, and prosecution of violators, but shall not exceed the cost of the regulatory program  authorized by this Chapter.  All fees and interest earned from such fees shall be used exclusively  to fund administration and enforcement of this Chapter.     4.64.110.  Compliance monitoring.       (a)  Compliance with this Chapter shall be monitored by the Department.  In addition, any  peace officer may enforce the penal provisions of this Chapter.  The City Manager may  designate any number of additional individuals to monitor and facilitate compliance  with this Chapter.     (b)  The Department or other individuals designated to enforce the provisions of this  Chapter shall check each Retailer at least once per 12‐month period to determine if the  Retailer is complying with all laws applicable to Retailing, other than those laws  regulating underage access to Tobacco Products.  Nothing in this paragraph shall create  a right of action in any Retailer or other Person against the City, the County of Santa  Clara, or its agents.     *Not Yet Approved*  16 20200513_ts_24_206 4.64.120.  Prevention of underage Sales.       (a)  The Department or other departments or individuals designated to enforce the  provisions of this Chapter shall, in conjunction with the Police Department, check each  Retailer at least once per 12‐month period to determine whether the Retailer is  conducting business in a manner that complies with laws regulating youth access to  Tobacco Products. Nothing in this paragraph shall create a right of action in any Retailer  or other Person against the City, the County of Santa Clara, or its agents.     (b)  The City shall not enforce any law establishing a minimum age for Tobacco Product  purchases against an individual who otherwise might be in violation of such law because  of the individual’s age (“Youth Decoy”) if the potential violation occurs when:     (1)  The Youth Decoy is participating in a compliance check supervised by a peace  officer or a code enforcement official of the City or County of Santa Clara;     (2)  The Youth Decoy is acting as an agent of a Department or individual designated  by the City or County of Santa Clara to monitor compliance with this Chapter; or   (3)  The Youth Decoy is participating in a compliance check funded in part, either  directly or indirectly through subcontracting, by the City, the County of Santa  Clara, or the California Department of Public Health.       4.64.130.  Penalties for a violation by a Retailer with a Permit.       (a)  Administrative fine.  In addition to any other penalty authorized by law, an  administrative fine shall be imposed and a Permit shall be suspended if any court of  competent jurisdiction determines, or the Department finds based on a preponderance  of the evidence that the Retailer, or any of the Retailer’s agents or employees, has  violated any of the requirements, conditions, or prohibitions of this Chapter, has pled  guilty, “no contest” or its equivalent to such a violation, or has admitted to a such a  violation.     (b)  Amount of fine.  The amount of the administrative fine for each such violation shall be  as follows:     (1)  A fine not to exceed $100.00 for a first violation within a 12‐month period;    (2)  A fine not to exceed $200.00 for a second violation within a 12‐month period;  and;    (3)  A fine not to exceed $500.00 for each additional violation within a 12‐month  period.     ///  *Not Yet Approved*  17 20200513_ts_24_206 (c)  Time period for Permit suspension.  The period of the suspension shall be as follows:    (1)  For a first violation of this Chapter at a location within any 60‐month period, the  Permit shall be suspended for up to 30 calendar days.     (2)  For a second violation of this Chapter at a location within any 60‐month period,  the Permit shall be suspended for up to 90 calendar days.     (3)  For each additional violation of this Chapter at a location within any 60‐month  period, the Permit shall be suspended for up to one year.      (d)  Waiver of penalties for first violation. The Department may waive any penalties for a  Retailer’s first violation of any requirement, condition, or prohibition of this Chapter,  other than a violation of a law regulating youth access to Tobacco Products, if the  Retailer admits the violation in writing and agrees to forego a hearing on the allegations.  Regardless of the Department’s waiver of penalties for a first violation, the violation will  be considered in determining the penalties for any future violation.     (e)  Corrections period. The Department shall have discretion to allow a Retailer a period of  time to correct any violation of any requirement, condition, or prohibition of this  Chapter, other than a violation of a law regulating youth access to Tobacco Products.  If  the Department exercises its discretion to provide a corrections period, and a Retailer’s  violation is corrected within the time allowed for correction, no penalty shall be  imposed under this section.     (f) Written notice of penalties. Whenever a fine is issued and/or a Permit is suspended  based on a violation of this Chapter, the Department shall provide the Retailer written  notice of the violation and the fine and suspension, including when the suspension shall  take effect.    (g)  Revocation for Retailers of flavored Tobacco Products or Electronic Cigarette Products.   In addition to any other penalty authorized by law, a Permit shall be revoked and all  exemptions under sections 4.64.030(i)(4)(i), 4.64.030(l)(i), 4.64.040(d), and 4.64.040(e)  shall be lost, if any court of competent jurisdiction determines, or the Department finds  based on a preponderance of the evidence that any Retailer of flavored Tobacco  Products and/or Electronic Cigarette Products, or any of the Retailer’s agents or  employees, has pled guilty, “no contest” or its equivalent to the following  violations, or  has admitted to a such a violation, in any combination, on two or more occasions within  any 60‐month period: (1) a violation of section 4.64.030(k) (Prohibition on Sale or  Distribution of Tobacco Products to individuals under 21); and (2) a violation of any State  Executive Order or Order of the Health Officer of Santa Clara County, including publicly  operating in violation of such orders.  The Department shall provide the Retailer written  notice of the violations and revocation, including when the revocation shall take effect.      *Not Yet Approved*  18 20200513_ts_24_206 4.64.140.  Penalties for Retailing without a Permit.       (a)  Administrative fine. In addition to any other penalty authorized by law, an  administrative fine and an ineligibility period for application or issuance of a Permit shall  be imposed if a court of competent jurisdiction determines, or the Department finds  based on a preponderance of evidence, that any Person has engaged in Retailing at a  location without a valid Permit, either directly or through the Person’s agents or  employees, has pled guilty, “no contest” or its equivalent to such a violation, or has  admitted to such a violation.     (b)  Amount of fine. The amount of the administrative fine for each such violation shall be as  follows:     (1)  A fine not to exceed $100.00 for a first violation within a 12‐month period;     (2)  A fine not to exceed $200.00 for a second violation within a 12‐month period;  and     (3)  A fine not to exceed $500.00 for each additional violation within a 12‐month  period.     (c)  Time period for Permit ineligibility.  The ineligibility period shall be as follows:    (1)  For a first violation of this section at a location within any 60‐month period, no  new Permit may be issued for the Person or the location (unless Ownership of  the business at the location has been transferred in an Arm’s Length Transaction)  until 30 calendar days have passed from the date of the violation.     (2)  For a second violation of this section at a location within any 60‐month period,  no new Permit may be issued for the Person or the location (unless Ownership of  the business at the location has been transferred in an Arm’s Length Transaction)  until 90 calendar days have passed from the date of the violation.     (3)  For each additional violation of this section at a location within any 60‐month  period, no new Permit may be issued for the Person or the location (unless  Ownership of the business at the location has been transferred in an Arm’s  Length Transaction) until one year has passed from the date of the violation.     (d)  Waiver of penalties for first violation. The Department may waive any penalties for a  Retailer’s first violation of this section, unless the violation also involves a violation of a  law regulating youth access to Tobacco Products, if the Retailer admits the violation in  writing and agrees to forego a hearing on the allegations. Regardless of the  Department’s waiver of penalties for a first violation, the violation will be considered in  determining the penalties for any future violation.   *Not Yet Approved*  19 20200513_ts_24_206 (e)  Written notice of penalties. Whenever a fine is issued and/or a Permit is suspended  pursuant to this section, the Department shall provide the Retailer written notice of the  fine and suspension, including when the suspension shall take effect.    (f) Appeals. Any penalties imposed under this section may be appealed pursuant to Section  4.64.150 of this Chapter.  A timely appeal shall stay enforcement of the appealed  penalties while the appeal is ongoing.       4.64.150.  Appeals.       (a) Any Retailer served with a written notice of penalties may request an administrative  hearing to appeal the existence of the violation, the amount of the fine, and/or the  length of the suspension by returning a completed hearing request form to the Office  of the County Hearing Officer (or City Clerk if violation is enforced by City) within 10  days from the date of the written notice of penalties.    (b) The Retailer shall include the following in or with the hearing request form:    (1) A statement indicating the reason the Retailer contests the written notice of  penalties;  (2) Any evidence the Retailer wants the Hearing Officer to consider;    (3) An advance deposit of the amount of any fine challenged; and    (4) The address of the Retailer and, if available, an email address that can be used  for contact and correspondence by the Office of the County Hearing Officer  (or City Clerk if violation is enforced by City) and the Department.  The  Retailer may request service of notice by mail.    (c) The hearing request form shall be deemed filed on the date received by the Office of  the County Hearing Officer (or City Clerk if violation is enforced by City).  A timely  appeal shall stay enforcement of the appealed penalties while the appeal is ongoing.    (d) After receiving a timely hearing request form, the Office of the County Hearing Officer  (or City Clerk if violation is enforced by City) shall notify the Department as soon as  practicable and then shall schedule an administrative hearing.  The Office of the  County Hearing Officer (or City Clerk if violation is enforced by City) shall provide the  Retailer and the Department at least ten calendar days’ written notice of the date,  time, and place of the administrative hearing and the name of the Hearing Officer who  will conduct the hearing.  The notice shall be given to the Retailer either by email, if  requested, or by first class mail, postage prepaid.      ///  *Not Yet Approved*  20 20200513_ts_24_206 (e) Between the time the Retailer requests the administrative hearing and the time of the  Hearing Officer’s decision, the Retailer, the Department, and each of their  representatives shall not engage in ex parte communications with the Office of the  County Hearing Officer (or City Clerk if violation is enforced by City) or the Hearing  Officer regarding the matters at issue in the hearing.    (f) The hearing shall be conducted by the Hearing Officer on the date, time, and place  specified in the notice to the Retailer.  A Retailer’s failure to appear at the hearing  shall constitute an abandonment of the hearing request and a failure to exhaust  administrative remedies as a precedent to judicially challenge the existence of the  violation and the imposition of the fine and suspension.    (g) At the hearing, the Retailer and the Department shall have the opportunity to present  evidence, including witnesses, relevant to the Hearing Officer’s determination of the  matter.  Neither the provisions of the Administrative Procedure Act (Government Code  Section 11500 et seq.) nor the formal rules of evidence in civil or criminal judicial  proceedings shall apply to such hearing.  The Hearing Officer may admit any evidence,  including witnesses, relevant to the determination of the matter, except as otherwise  provided in Section 4.64.160(c).     (h) The written notice of penalties and any other reports prepared by or for the  Department concerning the violation shall be admissible and accepted by the Hearing  Officer as prima facie evidence of the violation and the facts stated in those  documents.     (i) The Hearing Officer may continue the hearing from time to time, in his or her sole  discretion, to allow for its orderly completion.  After receiving the evidence submitted  at the hearing, the Hearing Officer may further continue the hearing and request  additional information from either the Department or the Retailer.    (j) After considering the evidence and testimony submitted the Hearing Officer shall issue  a written decision regarding the matters properly raised in the request for  administrative hearing. The Hearing Officer’s decision shall:    (1) Be based on a preponderance of the evidence.    (2) Include a statement of the reasons for the decision.    (3) Be issued within 20 calendar days of the close of the hearing.    (4) Be served on both the Retailer and the Department. The decision shall be given  to the Retailer either by email, if requested, or by first class mail, postage  prepaid.    *Not Yet Approved*  21 20200513_ts_24_206 (k) Based on the Hearing Officer’s decision, the Office of the County Hearing Officer (or  City’s Administrative Services Division if violation is enforced by City) shall promptly  refund to the Retailer any amount of the advance fine deposit the Department is not  entitled to and shall provide the remainder to the Department.    (l) The Hearing Officer’s written decision shall constitute the final administrative decision  of the City.      4.64.160.  Enforcement.       (a)  Any violation of this Chapter is hereby declared to be a public nuisance.     (b)  Causing, permitting, aiding, abetting, or concealing a violation of any provision of this  Chapter shall also constitute a violation of this Chapter.     (c)  Whenever evidence of a violation of this Chapter is obtained in any part through the  participation of an individual under the age of 21 years old, such an individual shall not  be required over his or her objection to appear or give testimony in any civil or  administrative process brought to enforce this Chapter and the alleged violation shall be  adjudicated based upon the sufficiency and persuasiveness of the evidence presented.     (d)  Violations of this Chapter may be remedied by a civil action brought by the City Attorney  or Santa Clara County Counsel, including, but not limited to, administrative or judicial  nuisance abatement proceedings, civil code enforcement proceedings, and suits for  injunctive relief.  For the purposes of the civil remedies provided in this Chapter, each  day on which a Tobacco Product is offered for Sale in violation of this Chapter, and each  individual retail Tobacco Product that is Sold or Distributed in violation of this Chapter,  shall constitute a separate violation of this Chapter.     (e)  Any Person found guilty of violating any provision of this Chapter shall be deemed guilty  of an infraction, punishable as provided by California Government Code § 25132.     (f)  The remedies provided by this Chapter are cumulative and in addition to any other  remedies available at law or in equity.     4.64.170.  No conflict with federal or state law.    Nothing in this Chapter shall be interpreted or applied so as to create any requirement, power,  or duty that is preempted by, or in conflict with, federal or state law, rules, or regulations.      SECTION 3.  If any section, subsection, clause or phrase of this Ordinance is for any  reason held to be invalid, such decision shall not affect the validity of the remaining portion or  sections of the Ordinance.  The Council hereby declares that it should have adopted the  Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the  *Not Yet Approved*  22 20200513_ts_24_206 fact that any one or more sections, subsections, sentences, clauses or phrases be declared  invalid.     SECTION 4.  The Council finds that this project is exempt from the provisions of the  California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA  Guidelines, because it can be seen with certainty that there is no possibility that the ordinance  will have a significant effect on the environment.     SECTION 5.  This ordinance shall be effective on the thirty‐first day after the date of  its adoption.      INTRODUCED:    PASSED:    AYES:    NOES:    ABSENT:    ABSTENTIONS:    ATTEST:           ____________________________    ____________________________  City Clerk       Mayor    APPROVED AS TO FORM:    APPROVED:    ____________________________    ____________________________  Deputy City Attorney     City Manager            ____________________________          Director of Public Works            ____________________________          Chief of Police             ____________________________          Director of Administrative Services  City of Palo Alto (ID # 10999) City Council Staff Report Report Type: Informational Report Meeting Date: 5/18/2020 City of Palo Alto Page 1 Summary Title: ADU Quarterly Report- Q4 2019 Title: Report to City Council on Accessory Dwelling Unit/Junior Accessory Dwelling Unit Development Activity for Fourth Quarter 2019 From: City Manager Lead Department: Planning and Development Services Recommendation This is an informational report and no action is requested. Background In June 2017, the City of Palo Alto amended the Zoning Code (Title 18) to adopt Accessory Dwelling Unit (ADU) regulations to comply with State adopted requirements. At adoption, the City Council directed staff to provide quarterly reports on the number of permits filed for the construction of ADUs. The City Council received the last development report for the second and third quarter 2019 on January 13, 2020 (Report ID# 10869). Discussion Following adoption of the regulations in 2017, the City experienced a significant increase in the number of ADU permits filed. The following table shows a ‘snapshot’ in the rise of ADU permit applications before and after adoption of new regulations. City of Palo Alto Page 2 Table 1: Summary of ADU Permits from 2015-2019 CATEGORY 2015 2016 2017 2018 2019 New ADU Applications Filed 1 10 9 28 55 75 Permits: Ready to Issue (City Approved) 2 8 5 12 39 63 Permits: Issued (Permit Obtained) 3 8 5 12 35 62 Permits: Final Inspection Approved 4 12 33 Detached ADUs (Submitted/Issued) 5 21/8 35/24 52/41 Attached ADUs (Submitted/ Issued) 6 7/4 19/11 22/20 Junior ADUs (Submitted / Issued) 7 0/0 1/0 1/1 Average Application Processing Time (Days Including Weekends) 8 127 214 118 183 135 Average Construction Time (Days Including Weekends) 9 287 173 City Impact Fees Collected for New ADU/JADU’s 10 $96,534 $558,218 $350,360 Notes: 1.Any ADU/JADU Application Submitted for the year 2.Any ADU/JADU application Permit Approved and Ready to Issue, regardless of when the application was submitted. 3.Any ADU/JADU Permit Issued for the year, regardless of when the application was submitted. 4.Any ADU/JADU Permit receiving a Final Inspection (Ready to Occupy) for the year, regardless of when the application was submitted. Years 2015-2017 data point not available. 5.Any Detached ADU Permit Application submitted for the year/Any Detached ADU Permit Issued for the year, regardless of when the application was submitted. Years 2015-2016 data point not available. 6.Any Attached ADU Permit Application submitted for the year/Any Attached ADU Permit Issued for the year, regardless of when the application was submitted. Years 2015-2016 data point not available. 7.Any JADU Permit Application submitted for the year/Any JADU Permit Issued for the year, regardless of when the application was submitted. Years 2015-2016 data point not available. 8.Average number of days from permit application submittal to when permit is approved and ready to issue. This average includes weekends and days application is pending due to applicant preparation of resubmittal or additional information from applicant. 9.Average number of days from permit issued to final inspection completed. This average includes weekends and days staff is waiting for applicant to schedule the next required inspection. 1. 2.Impact Fees collected for new ADU/JADU’s. Years 2015-2016 data point not available. waiting for applicant to schedule the next required inspection. City of Palo Alto Page 3 Data from Table 1 shows that 62 ADU/JADU permits were issued in 2019 or 122 ADU/JADU permits issued since 2015. In the fourth quarter of 2019, the City received a total of 18 ADU building permit applications. All ADU applications except one are in the R-1 single family zone district. Over sixty percent of the applications filed are in North Palo Alto, North of Page Mill Road/Oregon Expressway. Five ADU applications are for construction of new units, while the remaining 13 applications are for conversions of existing spaces, namely detached garages. The majority of the ADU applications filed are for one-bedroom units. The unit sizes ranged from 220 to 790 square feet, with an average unit size of 466 square feet. Only two projects utilized the floor area bonus allowed under the City’s ordinance. ADUs represent just over 20% of the total market rate regional housing need allocation assigned to the City. Next Steps The City Council adopted an Interim Urgency Ordinance for ADUs and JADUs on January 13, 2020. The ordinance is viewable here: https://www.cityofpaloalto.org/civicax/filebank/documents/75357. The adoption of this Interim Ordinance enabled the existing city codes to comply with the recent state laws on ADUs and JADUs. The Interim Ordinance is effective until January 31, 2021 or until City Council adopts a ‘permanent’ or updated ordinance. The City Council at-places memorandum of January 13, 2020 is viewable here: https://www.cityofpaloalto.org/civicax/filebank/documents/74864. The at-places memorandum modified the ordinance provisions presented in the packet report (Report ID # 10953)2 Council action minutes are viewable here: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=58940.61&BlobID =74845 This year an updated ordinance will be presented to Council will recommendations that further refine the City’s ADU regulations to streamline the permitting process for ADUs while incorporating the state regulations. The permanent ordinance will incorporate feedback from stakeholders and recommendations from the Planning and Transportation Commission (PTC). Attachments: Attachment A: List of ADU Building Permit Applications (October to December) 2019 1Link to Staff Report ID # 10869: https://www.cityofpaloalto.org/civicax/filebank/documents/74725 City of Palo Alto Page 4 2Link to Staff Report ID # 10953: https://www.cityofpaloalto.org/civicax/filebank/documents/74731 Attached Detached Attached Detached Garage Other Accessory Structure / Space 1 South Palo Alto R-1 10/10/2019 In Plan Check No x 1 509 2 North Palo Alto R-1 10/18/2019 In Plan Check No x x 1 372 3 South Palo Alto R-1 (S) 10/21/2019 In Plan Check No x x 0 378 4 North Palo Alto R-1 11/20/2019 In Plan Check No x x 1 721 5 South Palo Alto R-1 (8000)(S) 11/20/2019 In Plan Check No x x 1 379 6 South Palo Alto R-1 11/26/2019 In Plan Check No x 1 515 7 North Palo Alto RM-15 12/12/2019 In Plan Check No x x 1 386 8 South Palo Alto R-1 (8000) 12/13/2019 In Plan Check No x 1 611 9 North Palo Alto R-1 12/18/2019 In Plan Check No x 1 476 10 North Palo Alto R-1 12/20/2019 In Plan Check No x x 1 367 11 South Palo Alto R-1 12/23/2019 In Plan Check No x x 1 660 12 North Palo Alto R-1 11/05/2019 In Plan Check No x x 0 220 13 North Palo Alto R-1 12/19/2019 In Plan Check No x 0 385 14 North Palo Alto R-1 12/19/2019 In Plan Check No x 1 790 15 North Palo Alto R-1 12/19/2019 In Plan Check No x x 1 522 16 South Palo Alto R-1 12/19/2019 In Plan Check No x x 0 312 17 North Palo Alto R-1 12/19/2019 In Plan Check No x x 1 500 18 North Palo Alto R-1 12/20/2019 Incomplete No 0 220 Source: City of Palo Alto Accela Data. October 1 through December 31, 2019 Building Permit Issued # of Bedrooms ADU Size (SQFT) List of ADU Building Permit Applications from October to December, 2019 ATTACHMENT A New Construction Conversion Type of Conversion Number of Applications Project Location Zoning Date Filed Application Status City of Palo Alto (ID # 11066) City Council Staff Report Report Type: Informational Report Meeting Date: 5/18/2020 City of Palo Alto Page 1 Summary Title: Demand Side Management Report Title: Demand Side Management Report for Fiscal Year 2019 From: City Manager Lead Department: Utilities Recommendation This memo and the attached report present the achievements of Demand Side Management (DSM) programs implemented by the City of Palo Alto Utilities (CPAU) during Fiscal Year (FY) 2019. This is for the Council’s information and no action is required. Executive Summary The FY 2019 DSM Annual Report provides updates on the achievements of CPAU’s electric, natural gas, and water efficiency programs, as well as locally-sited solar photovoltaic (PV), solar water heating program and sustainability-related programs. The DSM Report also provides updates on various customer outreach and research and development initiatives that are related to achieving savings in electric, gas and water. CPAU exceeded its electric and water efficiency goals for FY 2019 but fell short of meeting its gas goals. The decline in gas savings is largely driven by less savings able to be claimed from home energy report savings persistence as well as the fact that the small and medium business efficiency program was not active in FY 2019 as it is in the process of being updated and launched. Background As a municipal utility that delivers electric, gas and water services to customers in its service territory, CPAU is subject to state laws that govern resource conservation and related expenditures. Key legislation that affects CPAU includes: Assembly Bill (AB) 1890 (1996) requires publicly owned electric utility (POUs) to establish a public benefit charge of 2.85% of revenue to fund any or all of the following “public benefit” programs: • Cost-effective, DSM services to promote energy-efficiency and energy conservation. City of Palo Alto Page 2 • New investment in renewable energy resources and technologies consistent with existing statutes and regulations that promote those resources and technologies. • Research, development, and demonstration programs in the public interest which advance science, or a technology not being adequately provided for by competitive and regulated markets. • Services for low-income electricity customers such as targeted energy-efficiency installations. Senate Bill (SB) 1037 (2005) requires each POU, in procuring energy, to first acquire all available energy efficiency and demand reduction resources that are cost-effective, reliable and feasible. AB 2021 (2006), as amended by AB 2227 (2012), requires POUs to develop annual electric efficiency targets over ten years based on all potentially achievable cost-effective energy savings, update the goals every four years, and provide annual reports to their customers and the California Energy Commission. CPAU adopted its first ten-year electric and gas efficiency targets in 2007 and has since updated these goals twice with the last update completed in December 2012. SB 1 (2006) requires all POUs to adopt, implement and finance a solar initiative program to encourage the installation of residential and commercial solar energy systems. AB 1470 (2007) requires each POU providing gas service to retail end-use gas customers to adopt, implement and finance a solar water heating system incentive program. SBx7-7 (2009) requires water suppliers to reduce the state average per capita daily water consumption by 20% by December 31, 2020. This requirement is incorporated in the 2015 Urban Water Management Plan, adopted by California’s urban water suppliers including Palo Alto. SB 350 (2015) sets targets for utilities of 50% renewable electricity retail sales and double the energy efficiency savings in electricity and natural gas, both by 2030. The law grants compliance flexibility for publicly owned utilities that achieve 50% or more of retail sales from certain large hydroelectric power. Discussion CPAU offers incentives and education programs for customers to encourage energy and water efficiency, customer-owned renewable generation, and enrollment in voluntary renewable energy programs. The table below summarizes the FY 2019 goals and achievements. As shown, the achievements for electric and water efficiency exceeded the goals set for FY 2019. Gas savings missed the target as there was a drop off in commercial gas efficiency projects. City of Palo Alto Page 3 Goals versus Achievements Resource FY 2019 Savings Goals (% of load) FY 2019 Savings Achieved (% of load) FY 2019 Savings Achieved Electricity 0.88% 1.02% 8,980 MWh Gas 1.05% 0.57% 167,186 therms Water 0.91% 3.04% 134,242 CCF Despite not meeting all efficiency savings goals, the portfolio of programs generated cost- effective savings across all three utilities. More information on this can be found in the report. Furthermore, CPAU develops a range of marketing campaigns to promote gas, electric, and water efficiency programs and increase public engagement. Promotional methods include community outreach events, print ads in local publications, utility bill inserts, messaging on bills and envelopes, website, email newsletters, videos for the web and local cable television channels, and the use of social media (Twitter/Facebook/NextDoor/Videos). The attached DSM Report provides details about CPAU’s FY 2019 DSM programs including costs and resource savings by program and by end use, description of customer outreach efforts, and research and development initiatives that are underway. Stakeholder Engagement CPAU receives significant stakeholder engagement on its demand side management programs during the energy efficiency target setting performed every four years. In addition, many program offerings are developed with input from community members, third party subject matter experts, and feedback provided from the UAC and Council. Environmental Review The Demand Side Management Report is not subject to review under the California Environmental Quality Act since receiving this report will have no foreseeable direct or indirect physical change in the environment and therefore does not meet the definition of a Project under Public Resources Code 21065. Attachments: • Attachment A: FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report OVERVIEW: The City of Palo Alto Utilities (CPAU) is the only city-owned utility in California that operates its own utilities for electric, natural gas, water, fiber optic, storm drain, wastewater and refuse services. We have been providing quality services to the citizens and businesses of Palo Alto since 1896. MISSION: To provide safe, reliable, environmentally sustainable and cost-effective services. STRATEGIC DIRECTION: At CPAU, our people empower tomorrow’s ambitions while caring for today’s needs. We make this possible with our outstanding professional workforce, leading through collaboration and optimizing resources to ensure a sustainable and resilient Palo Alto. PRIORITIES: Workforce: We must create a vibrant and competitive environment that attracts, retains, and invests in a skilled and engaged workforce. Collaboration: We must collaborate with internal teams and external stakeholders to achieve our shared objectives of enhanced communication, coordination, education, and delivery of services. Technology: We must invest in and utilize technology to enhance the customer experience and maximize operational efficiency. Financial Efficiency and Resource Optimization: We must manage our finances optimally and use resources efficiently to meet our customers’ service priorities. Fiscal Year 2019 Demand Side Management Report TABLE OF CONTENTS EXECUTIVE SUMMARY ..................................................................................................................... 3 1 ELECTRIC EFFICIENCY ACHIEVEMENTS ..................................................................................... 7 2 GAS EFFICIENCY ACHIEVEMENTS ........................................................................................... 10 3 WATER EFFICIENCY PROGRAMS ............................................................................................. 13 4 SUSTAINABLE ENERGY PROGRAMS ....................................................................................... 16 APPENDIX A: PROGRAM DESCRIPTION ........................................................................................... 19 APPENDIX B: FY 2019 ACHIEVEMENTS BY DSM PROGRAM ............................................................. 24 APPENDIX C: HISTORICAL DSM PROGRAM EXPENDITURES ............................................................. 26 APPENDIX D: CITY POLICIES/PLANS AND STATE MANDATES IMPACTING DSM PROGRAM GOALS AND IMPLEMENTATION ........................................................................................................................ 27 3 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report EXECUTIVE SUMMARY The City of Palo Alto Utilities (CPAU) is pleased to issue the Demand Side Management (DSM) Report for Fiscal Year (FY) 2019. This report is a useful public document showing the efficiency achievements and customer programs. CPAU is committed to supporting environmental sustainability through conservation of electric, gas and water resources. Additionally, CPAU promotes distributed renewable generation, building electrification, and electric vehicles using incentives and educational programs. CPAU accomplishes these goals by delivering a wide range of customer programs and services as described in this report, and strives to do so while remaining personable and in-touch with customer needs. This annual report provides updates on: ♦ Electric and natural gas energy efficiency (EE) programs ♦ Water conservation programs ♦ Sustainability and carbon-reduction programs ♦ Customer engagement and satisfaction programs ♦ Achievements and expenditures ENERGY EFFICIENCY AND WATER CONSERVATION GOALS AND ACHIEVEMENTS CPAU offers incentives and education programs for customers to encourage energy and water efficiency - Table ES.1 summarizes the FY 2019 efficiency goals and achievements. FY 2019 represents the second year of increased energy savings targets1 established since SB 350 was enacted in 2015 with the aim to double the energy efficiency savings in electricity and natural gas in buildings by 2030. CPAU exceeded the higher new electricity efficiency savings goal for 2019 (using gross accounting basis), while falling short of the goal for natural gas efficiency savings. The decline in gas savings is partially driven by the suspension of the home energy report program which is scheduled to resume in FY2021. Water efficiency savings dramatically increased in 2019, because a process to collect data for water savings associated with the Green Building Ordinance was developed. Table ES.1: Efficiency Goals versus Achievements Resource FY 2019 Savings Goals (% of load) FY 2019 Savings Achieved (% of load) FY 2019 Savings Achieved Electricity2 0.88% 1.02% 8,980 MWh Gas 1.05% 0.57% 167,186 therms Water 0.91% 3.04% 134,242 CCF 1 Electric goals: https://www.cityofpaloalto.org/civicax/filebank/documents/56087; Gas goals: https://www.cityofpaloalto.org/civicax/filebank/documents/56113 2 Savings goals and savings achieved are given in Table ES.1 on a gross efficiency savings accounting basis. As a percentage of load, the net electricity savings goal was 0.75% and the net savings achieved was 0.61% or 5,372 MWh. Net values account for the impact of “free ridership” or customers who would have upgraded to more efficient measures without the program or incentive. Gas and water goals and achievements are only tracked on a gross basis, and therefore electricity efficiency savings are shown on a gross basis in Table ES.1 above for consistency. 4 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report CPAU is committed to implementing all cost-effective energy and water efficiency measures (i.e. those that are less expensive than supply-side resources). Table ES.2 summarizes the cost of efficiency over the last three years compared to the projected cost of supply resources. Electric, natural gas, and water efficiency portfolios were cost-effective compared to additional supply-side resources in FY 2019. Overall cost of the portfolios were lower than the historical average. New programs are planned for launch in 2020-2021, and total expenditures are expected to increase as a result. The rolling 3-year average provides the longest view for interpreting the cost effectiveness of efficiency portfolios, as it accounts for yearly variations in program engagement and funding. The rolling 3-year average shows that the electric and water efficiency portfolios have been cost-effective. On the other hand, the 3-year average cost of gas efficiency savings is higher than the future supply. This was driven by very high program costs in FY 2017 as well as inexpensive future supply. The FY 2018 and 2019 gas efficiency cost effectiveness has improved versus future supply cost of gas, but staff continues to assess ways to improve the cost-effectiveness of the gas portfolio going forward. The cost of both the electricity and natural gas efficiency portfolios are also negatively impacted by the Home Efficiency Genie program. The Home Efficiency Genie program is a customer service program that provides great educational value to Palo Alto residents but delivers fairly small energy efficiency savings. Table ES.2: Actual Levelized Efficiency Costs versus Projected Supply Costs FY 2017 Efficiency FY 2018 Efficiency FY 2019 Efficiency 3-yr average Efficiency Future Supply Electric $/kWh $0.056 $0.034 $0.024 $0.038 $0.105 Gas $/therm $1.86 $0.56 $0.56 $0.99 $0.61 Water $/CCF $4.62 $4.71 $0.26 $3.20 $5.77 SUSTAINABILITY GOALS AND ACHIEVEMENTS In FY 2019 efforts around building electrification and electric vehicle charger rebates were increased. Staff also continued working with a marketing consultant to upgrade the marketing materials for all programs including a full website migration. In addition, CPAU claimed energy savings for the third year achieved by Palo Alto’s building energy reach code and improved the data collection process to claim water savings. Staff worked with TRC, a third party auditor who conducted CPAU’s Evaluation, Measurement & Verification to estimate and claim energy savings from projects that reported time dependent valuation (TDV) energy summaries. Finally, CPAU was able to claim savings from its Business New Construction program for one large project that took multiple years to complete but accounted for a significant contribution to overall energy savings. 5 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report CPAU supports a variety of programs designed to promote sustainability and reduce carbon emissions in Palo Alto. The Electric Vehicle Supply Equipment (EVSE) rebate focuses on “hard-to-reach” market segments for EV chargers by targeting multifamily dwellings, nonprofits and schools. The state- mandated solar water heating program is not cost-effective; CPAU offers the program but does not actively promote it. Given the lack of promotion and the low natural gas prices, installed solar water heating systems continue to fall short of the goal. This program is expected to close at the end of July 2020, assuming no new legislation extends the state mandate. Table ES.3: Sustainability Programs and Goals Sustainability Program Program Goal FY 2019 Achievement Cumulative Achievement Through FY 2019 Heat-Pump Water Heater (HPWH) Rebate 110 installed by July 2019 10 40 EV Charger Rebate (EVSE) 200-400 new charging ports by 2021 8 22 Solar Water Heating Compliance – Not Cost Effective 0 systems 68 systems since 2008 CUSTOMER SATISFACTION GOALS AND ACHIEVEMENTS Supporting the community is at the heart of CPAU’s mission. CPAU offers some programs that are not intended to achieve efficiency savings but are offered for educational value or as a customer service program to increase customer satisfaction. Palo Alto once again hosted two educational workshops for the SunShares program, which is a bulk buy program of PV systems for the nine counties comprising the Bay Area. Once again Palo Alto was the number one outreach partner in number of systems installed and kWs installed. Table ES.4: DSM Program Areas Community Engagement Program Program Goal FY 2019 Achievement Cumulative Achievement through FY 2019 Residential Satisfaction >50%3 76%4 - SunShares PV GroupBuy PV capacity 76 kW 497 kW Home Efficiency Genie 120 audits year 76 358 3 This goal is from the 2018 City of Palo Alto Utilities Strategic Plan in the priority area of Collaboration. 4 This residential satisfaction is from the 2018 RKS residential survey in Attachment D of the October 2, 2019 UAC report. The survey is conducted every other year. 6 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report HIGHLIGHTS OF FISCAL YEAR 2019 Three years after implementing the Business New Construction program, one large project was fully closed out in FY2019 and the resulting energy savings were eligible to be claimed. Successful completion of this project accounted for almost half of all gross electric savings. The Commercial and Industrial Energy Efficiency Program is the flagship of CPAU’s commercial portfolio. With three engineering firms working closely with CPAU Key Account Representatives, this program provides the bulk of Palo Alto’s energy savings. The engineering firms assist customers with audits, engineering studies, vendor selection, rebate processing and post-installation inspection making the process as easy as possible for the customer. Roughly a quarter of the gross energy savings resulted from this program. CPAU mirrored this program design into the residential market with the Home Efficiency Genie as “Your Trusted Energy Advisor” and have begun seeing increased engagement with residents. CPAU added an EV Charger Rebate Program in late FY 2017, using funds from the Low Carbon Fuel Standard credit sales and, in 2019, invested additional staff time to expand the program by contracting with a third-party vendor to provide prospective customers with technical assistance. The EV Technical Assistance Program launched in FY 2020. CPAU continues to promote the Heat Pump Water Heater rebate program in effort to achieve the City’s S/CAP goals, but the program has relatively low participation. Both EV charging rebates and the Heat Pump Water Program remained a high priority for staff in FY 2019, reflecting the ongoing community priority of reducing CO2 emissions. Palo Alto participated in the SunShares program again, which is a bulk buy program of PV systems for the nine counties comprising the Bay Area, and once again Palo Alto was the number one outreach partner in number of systems installed and kWs installed. Finally, CPAU continued buying carbon offsets to offset the emissions of the entire natural gas portfolio. 7 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report 1 ELECTRIC EFFICIENCY ACHIEVEMENTS 1.1 Electric Efficiency Savings versus Goals City Council approved CPAU’s first Ten-Year Energy Efficiency Portfolio Plan in April 2007, which included a 10-year cumulative savings target of 3.5% of the forecasted energy use. As mandated by California law, the electric efficiency targets have been periodically updated, with the most recent 10-year cumulative savings goal set at 5.7% between 2018 and 2027. The goal has been impacted by increasingly stringent statewide building codes and appliance standards. The substantial energy savings from these “codes and standards” can no longer be counted towards meeting CPAU’s EE program goals displayed below. With stricter codes and standards, higher efficiency goals and over 30 years of running programs in Palo Alto, staff needs to continue to innovate to maintain and increase efficiency savings. CPAU’s electric efficiency savings goals and achievements as a percentage of the City’s electricity usage are shown in Table 1 below. In FY 2019, on a gross efficiency savings basis, CPAU achieved electric efficiency savings of 1.02% of its total electricity sales through its customer efficiency programs. This exceeded the 2019 CPAU electric efficiency goal by 14%. Table 1: Electric Savings versus Goals Year Annual Savings Goal (% of load) Savings Achieved (% of load) Savings Achieved (MWh) Goal Source FY 2008 0.25% 0.44% 4,399 2007 FY 2009 0.28% 0.47% 4,668 FY 2010 0.31% 0.53% 5,270 FY 2011 0.60% 0.58% 5,497 2010 FY 2012 0.65% 1.31% 12,302 FY 2013 0.70% 0.85% 8,074 FY 2014 0.60% 0.86% 8,218 2012 FY 2015 0.60% 0.65% 6,063 FY 2016 0.60% 0.59% 5,530 FY 2017 0.60% 0.65% 5,986 FY 2018 0.88%5 (0.75%) 1.00%5 (0.66%) 8,9885 (5,957) 20175 FY 2019 0.88%5 (0.75%) 1.02%5 (0.61%) 8,9805 (5,372) 5 Electricity efficiency savings goal and achievements are presented here on a gross basis, and the net numbers are added in parenthesis for FY 2018 and 2019. CPAU will be reporting both net and gross electricity efficiency savings going forward, due to discrepancies between anticipated net to gross ratios during the 2017 goal setting and actual net-to-gross ratios for electric efficiency measures implemented. Staff is will be revising goals in 2020-2021 and is also considering a study specific to Palo Alto to develop a local net-to-gross ratio for programs and measures. 8 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report When accounting for the metric of “free-ridership” the net electric efficiency savings achieved dropped to 0.61% of load, and experts have suggested a Palo Alto specific study to examine free- ridership levels on incentive programs. Staff is currently weighing the relative impact of such a study compared to investing program innovation. Since there is so much uncertainty in the levels of free-ridership, the goals and achievements of the electric efficiency savings are presented on both a net and gross basis. For context, gas and water efficiency measures are both reported on a gross basis. 1.2 FY 2019 Electric Efficiency Savings by End Use and Customer Segment Non-residential customers account for approximately 80% of CPAU’s electric sales, and non- residential efficiency program savings represent about 83% of CPAU’s total electric efficiency savings, as shown in Figure 1. Non-residential new construction and non-residential lighting accounted for approximately 77% of the total electric portfolio savings. The City of Palo Alto’s Energy Reach Code Ordinance is a local ordinance that exceeds state minimum efficiency standards and also contributed substantial electricity efficiency savings. Figure 1: Composition of Net Electric Efficiency Savings in FY 2019 Non-Res Lighting 30% Non-Res New Construction 47% Non-Res Energy Reach Code Ordinance 8% Res Home Energy Report 7% Home Efficiency Genie 1% Multifamily Lighting 3% Low-Income 1% Other 3% 9 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report Figure 2 shows the historical annual electric efficiency savings and annual electric efficiency program expenditures. Figure 2: FY 2008 to FY 2019 Electric Efficiency Savings and Expenditures - 1,000 2,000 3,000 4,000 5,000 0.0% 0.4% 0.8% 1.2% 1.6% 2.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $ Th o u s a n d s Ac h i e v e d N e t E E s a v i n g s a s % o f l o a d Electric Efficiency Program Expenditures Net Savings Achieved as % of Load Completion of a significant EE project at a large commercial customer site 10 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report 2 GAS EFFICIENCY ACHIEVEMENTS 2.1 Gas Efficiency Savings versus Goals In parallel with the development of ten-year electric goals, City Council adopted CPAU’s first set of gas efficiency targets in 2007 to reduce 10-year gas consumption by 3.5%. The most recent goal, set in 2017, is a 5.1% cumulative efficiency savings between 2018 and 2027. Gas savings from heat-pump water heater rebate program are included below. CPAU’s gas efficiency savings goals and achievements as a percentage of sales are shown in Table 3. CPAU has continued to expand its gas efficiency program portfolio in the past several years, with most gas savings delivered through third-party administered programs. Table 3: Gas Savings versus Goals Year Annual Savings Goal (% of load) Savings Achieved (% of load) Savings Achieved (therms) Goal Source FY 2008 0.25% 0.11% 35,057 2007 FY 2009 0.28% 0.29% 146,028 FY 2010 0.32% 0.35% 107,993 FY 2011 0.40% 0.55% 164,640 2010 FY 2012 0.45% 0.74% 220,883 FY 2013 0.50% 1.13% 327,077 FY 2014 0.50% 1.20% 337,079 2012 FY 2015 0.50% 0.92% 229,373 FY 2016 0.55% 1.08% 289,442 FY 2017 0.55% 0.81% 228,707 FY 2018 1.00% 0.93% 264,960 2017 FY 2019 1.05% 0.57% 167,186 2.2 FY 2019 Gas Efficiency Savings by End Use and Customer Segment Non-residential customers account for 52% of CPAU’s gas sales, and in FY 2019, non-residential gas efficiency savings represented about 47% of CPAU’s total gas savings. Non-residential HVAC comes from customers who upgrade HVAC equipment. Home Energy Reports (HERs), which compare customers’ electricity and gas usage to that of similar homes, were discontinued in FY 2015 but provided savings based on assumed persistence of the program’s effects6. In FY 2019, the HER program accounted for 35% of total gas savings and is the final year persistence will be claimed. Had Palo Alto been able to roll out the new Home Energy Report earlier we would have 30% higher gas savings. This program is currently being configured, and will hopefully help customers begin saving natural gas in FY2021. Figure 3 shows the breakdown of gas savings in FY 2019 by end use. The City of Palo Alto’s Energy Reach Code Ordinance is a local ordinance that exceeds state minimum efficiency standards and also contributed natural gas efficiency savings. 6 Savings from a behavioral program can be claimed at a declining level for five years after it closes (Cadmus 2015 report). 11 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report Figure 3: Composition of Natural Gas Efficiency Savings in FY 2019 Non-Res HVAC 35% Non-Res Service and Domestic Hot Water 8% Non-Res Energy Reach Code Ordinance 1% Res Home Energy Report 36% Home Efficiency Genie 12% Low Income 3% Heat Pump Water Heater 1%Other 4% 12 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report Figure 4 compares the historical annual gas efficiency savings and annual gas DSM expenditures. Figure 4: FY 2008 to FY 2019 Gas Efficiency Savings and Expenditures - 300 600 900 1,200 1,500 0.0% 0.3% 0.6% 0.9% 1.2% 1.5% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $ Th o u s a n d s Ac h i e v e d E E s a v i n g s a s % o f L o a d Gas Efficiency Program Expenditures Actual Savings Achieved as % of Load 13 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report 3 WATER EFFICIENCY PROGRAMS 3.1 Water Efficiency Savings versus Goals CPAU’s water savings goals and achievements as a percentage of sales are shown in Table 5. Table 5: Water Savings versus Goals Year Annual Savings Goal (% of load) Savings Achieved (% of load) Savings Achieved (CCF) FY 2008 0.34% 0.72% 39,323 FY 2009 0.34% 0.98% 52,983 FY 2010 0.34% 1.35% 68,948 FY 2011 0.90% 0.47% 23,409 FY 2012 0.91% 1.09% 55,067 FY 2013 0.91% 0.53% 26,513 FY 2014 0.91% 0.64% 32,325 FY 2015 0.91% 1.54% 68,227 FY 2016 0.91% 1.96% 74,484 FY 2017 0.91% 1.40% 57,154 FY 2018 0.91% 0.47% 23,209 FY 2019 0.91% 3.04% 134,242 The City partners with the Santa Clara Valley Water District (Valley Water) to provide water conservation programs. Valley Water administers the programs for Palo Alto customers, and CPAU markets and promotes the programs. FY 2019 is the first year the City has claimed savings associated with the City of Palo Alto’s Green Building Ordinance. Historically, participants were not required to submit water savings data, but the City began collecting that information at the end of FY 2018. Local ordinances such as the City of Palo Alto’s Green Building Ordinance are generally agreed to be an effective way to improve conservation and the FY2019 water efficiency and savings data proves this out. 3.2 FY 2019 Water Efficiency Savings by End Use and Customer Segment The Green Building Ordinance accounted for nearly 90% of all water savings with the remaining 10% coming from the water programs administered by Valley Water. 14 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report Figure 5: Composition of Water Efficiency Savings in FY 2019 Green Building Ordinance 89% Valley Water 11% 15 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report Figure 6 compares the historical annual water efficiency savings and annual water DSM expenditures. Figure 6: FY 2008 to FY 2019 Water Efficiency Savings and Expenditures - 200 400 600 800 1,000 0.0% 0.4% 0.8% 1.2% 1.6% 2.0% 2.4% 2.8% 3.2% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $ Th o u s a n d s Ac h i e v e d w a t e r s a v i n g s a s % o f L o a d Water efficiency program expenditures ($)Actual water savings as % of load 16 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report 4 SUSTAINABLE ENERGY PROGRAMS 4.1 Overview of Sustainable Energy Programs CPAU offers a variety of programs to encourage residents and non-residents to improve the environmental impacts associated with their gas and electric consumption. Customer-side renewable generation programs are available to support the installation of both solar photovoltaic (PV) and solar water heating (SWH) systems. 4.2 PV System Installation Achievements versus Goals As of the end of FY 2019, there were a total of 1,168 PV installations (1,139 residential, 85 non- residential, 6 CLEAN) since CPAU began supporting local solar PV installations in 1999. These customer-side generation systems are not included in CPAU’s Renewable Portfolio Standard (RPS) supply requirements. In FY 2018, the first PV system went live for the Clean Local Energy Accessible Now (CLEAN) program, which purchases electricity from renewable energy generation systems in CPAU’s service territory. The CLEAN program provides a Feed-In-Tariff rate of $0.165/kwh for the first 3 MW of installed capacity. Nearly half of the capacity was reserved in FY 2018 with the remaining capacity reserved in FY 2019. In 1999 CPAU began offering incentives for PV system installations through the PV Partners Program. In FY 2008 the PV rebate budget was increased as mandated by Senate Bill 1 (2006) and Palo Alto’s share of the state-wide goal established by SB 1 was 6.5 MW by 2017. By June 30, 2017, Palo Alto exceeded its share of the state-wide goal, with a total capacity of all Palo Alto PV systems at 8.6 MW, generating about 1.5% of the City’s annual electric energy needs. The PV rebate funds were fully reserved in August 2014 for residential projects and in April 2016 for commercial projects, but rebate payments are expected to continue through FY 2023 due to the five-year performance-based incentive schedule. Residents and commercial customers continue to install solar without a rebate largely due to the continued decrease in solar installation costs, net metering and the 30% Federal Tax Credit. 17 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report Figure 7: Photovoltaic (PV) Installations by Fiscal Year Figure 8: PV System Capacity (kW) added by Fiscal Year FY00- 07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 CLEAN 3 3 Res 176 112 43 52 44 49 49 103 93 131 84 77 64 Non-Res 9 5 9 2 2 4 3 10 9 5 7 8 12 0 50 100 150 200 In s t a l l a t i o n C o u n t FY00- 07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 CLEAN 1,500 1,500 Res 542 328 152 205 187 195 214 543 474 633 409 449 375 Non-Res 123 227 1,037 15 295 249 49 1,383 378 465 508 1,049 591 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Ca p a c i t y A d d e d ( k W -AC ) 18 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report 4.3 Solar Water Heating System Installation Achievements versus Goals A total of 68 solar water heating (SWH) systems have been installed since CPAU began offering SWH rebates to residential and commercial customers in 2008. The SWH rebate program was mandated by AB 1470 (2007) and was recently extended for two additional years by AB 797 (2017). It is administered by the Center for Sustainable Energy (CSE), which also administers SWH rebate programs in the San Diego area. As shown in Figure 9, the number of SWH systems installed has been consistently below target, primarily due to low gas prices which reduce the cost-effectiveness of SWH systems. Unlike PV systems, the cost for SWH systems has not decreased over time. Figure 9: Customer-Side Solar Water Heating Systems—Program Achievements versus Annual Goal of 30 7 17 10 1 1 11 15 1 1 4 00% 25% 50% 75% 100% FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Installed by Fiscal Year Installation Goal 19 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report APPENDIX A: PROGRAM DESCRIPTION The programs offered by CPAU are designed to assist all customer groups achieve efficiency savings in electricity, natural gas and water in a cost-effective manner. Please see Appendix B for the savings totals associated with each program. RESIDENTIAL PROGRAMS • Home Efficiency Genie The Home Efficiency Genie (HEG) has become CPAU’s flagship residential program. Launched in June 2015, the program enables our residents to call the ‘Genie’ to get free utility bill reviews and phone consultations. For a fee, residents also have the option to receive an in-depth home efficiency assessment which includes air leakage testing, duct inspections, insulation analysis, energy modeling and a one-on-one review of assessment reports with an energy expert. This package is also followed up with guidance and support throughout home improvement projects. The HEG program has a high educational component for Palo Alto residents, which likely leads to additional savings that staff cannot track and include in this program’s savings totals. The Genie also tables at various events throughout the year. In FY 2019, the Genie continued to be the gateway to all of CPAU’s residential programs. • Educational Programs and Workshops A variety of educational programs and workshops are held throughout the year. Typically, residential workshops on water and energy programs occur in the spring near Earth Day and in the “Summer Workshop Series.” Many workshops focus on water efficiency, landscaping, energy efficiency, solar, home comfort and green building. CPAU is also invited to table at various events throughout the year to educate residents about the various programs we offer. Customers also receive timely E-newsletters on a variety of efficiency matters. • Home Energy Reports CPAU stopped providing residents with individualized reports comparing their home energy use with neighbors in similarly sized homes in FY 2015. The program was ended due to customer complaints about being compared to neighbors, as well as disputes over the basis of the comparison. Staff began focusing on developing a portal that could replace both reports, but the portal vendor later discontinued their product. Studies have shown that savings persist after the program has ended but decrease at a rate of 20% per year, so some reduced savings are still claimed (Cadmus 2015 report). • MultiFamily Residence Plus+ Program This first-ever CPAU program focusing on multifamily buildings provides free, direct installation of EE measures to multifamily residences with 4 or more units including hospices, care centers, rehab facilities and select small and medium commercial properties. In its first year the program focused on energy-efficient lighting and insulation upgrades. In the summer of 2016, the program was revamped to include more LED lighting upgrades as the price of LEDs had decreased and the 20 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report quality of the lights improved greatly. The addition of LEDs drew excitement from many property managers and building owners who were initially not interested in participating in the program. As a result, CPAU will continue to re-evaluate the program to accommodate this underserved market. Staff expects energy savings to remain high for this program, with a focus on upgrading below-market-rate apartment complexes. • Residential Energy Assistance Program (REAP) REAP provides weatherization and equipment replacement services at no cost to low-income residents and those with certain medical conditions. This program has equal focus on efficiency and comfort, and therefore it is not included in the cost effectiveness calculation used in reporting. The program provides LED lighting, heating system upgrades, insulation for walls and roofs and weather-stripping for doors and windows. • Do-It-Yourself Water-Wise Indoor Survey Palo Alto residents can request a free indoor water survey kit that can help conserve water and save money on utility bills. Residents also become educated on opportunities for conservation in their homes, and they can request free tools to improve efficiency. The program is offered in partnership with the Valley Water. • Free Water-Wise Outdoor Survey Palo Alto residents can schedule a free outdoor survey with a trained irrigation professional. The trained specialist will provide an on-site evaluation of the resident’s irrigation system and provide recommended upgrades and repairs. The program is offered in partnership with the Valley Water. • Landscape Rebate Program (LRP) The Landscape Rebate Program provides rebates for various irrigation hardware upgrades, including rain sensors, high-efficiency nozzles, dedicated landscape meters, and weather-based irrigation controllers, as well as landscape conversion rebates that encourage residential and commercial customers to replace high-water-use landscaping with low-water-use landscaping. During FY 2016 residents were eligible to receive rebates of $3.00/square foot ($2.00 from Valley Water and $1.00 from CPAU). A new agreement with Valley Water was signed in early 2017, continuing our partnership in the LRP. Residents are now eligible to receive rebates of $2/square foot of replaced landscaping ($1.00 from Valley Water and $1.00 from CPAU). 21 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report BUSINESS PROGRAMS • Commercial Advantage Program Business customers are offered rebates for investments in a catalog of energy efficiency products including lighting, motors, HVAC and custom projects that target peak demand and energy reductions. • Commercial and Industrial Energy Efficiency Program (CIEEP) This is the fourth year that CPAU expanded this program to offer Key Accounts (the largest commercial energy users in Palo Alto) the option of picking one of three engineering consulting firms to assist in helping them evaluate and implement energy efficiency projects. Designed for the large commercial customer, CIEEP offered highly effective building commissioning services using third-party contractors Enovity, Ecology Action and BASE. The contracts were extended in June 2018 for two additional years. This assistance included reviewing lighting and heating/cooling systems and their operating specifications. Customers then obtained rebates for replacing chillers, building control systems, linear fluorescent lighting, occupancy sensors, boilers and insulation. • Empower SMB Through third party vendors, this program assisted the installation of electric and gas efficiency savings measures for small and medium sized business customers. This program ended in FY 2018 and is being revamped to launch in FY 2020 but may not generate savings until FY 2021. • Commercial and Industrial Water Efficiency Program CPAU partners with the Valley Water to provide non-residential customers with free landscape irrigation audits, and direct installation of high-efficiency toilets and urinals. Rebates are available for facility process improvements, landscape conversions, irrigation hardware upgrades and weather-based irrigation controllers. • Landscape Survey and Water Budget Program Through Valley Water, the City provides landscape irrigation surveys, water budgets and customized consumption reports for customers with large landscape sites. The service is provided by Waterfluence. The water budget for each landscape site is derived based on the amount of irrigated area, type of plants, type of irrigation system and real-time weather monitoring. Monthly reports documenting a site’s irrigation performance are distributed to site managers, landscapers, HOA board members and other relevant parties, as approved by utility account holders. Through a web portal, customers can access site-specific recommendations, verify water budget assumptions and request a free landscape field survey from an irrigation expert. This program has been in place since 2012 and to date there are 118 large landscape sites covered under this program. 22 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report • PaloAltoGreen This highly successful program enabled residents and businesses to pay a small premium for 100% renewable energy. In June 2014, Council terminated PaloAltoGreen for residential customers since the City’s electric supplies are 100% carbon neutral. Commercial customers can still participate in this program by enrolling in the PaloAltoGreen 100% option or by purchasing blocks in 1,000 kWh increments. Participation enables commercial customers to be recognized under the U.S. EPA Green Power Leadership program or to earn Leadership in Energy and Environmental Design (LEED) Green Power credits. • Palo Alto Clean Local Energy Accessible Now (CLEAN) Program Through the CLEAN (Clean Local Energy Accessible Now) program CPAU offers a feed-in tariff, wherein developers of renewable energy generation projects in Palo Alto can receive a long-term purchase agreement for the output of their projects. All the generated electricity is procured to contribute towards fulfilling Palo Alto’s Renewable Portfolio Standard (RPS) requirement. For fiscal year 2018, the prices are 16.5 ¢/kWh fixed for 15, 20 or 25 years for solar renewable energy resources, up to a capacity limit of 3 MW (and 8.8 ¢/kWh for a 15-year contract term, 8.9 ¢/kWh for a 20-year contract term or 9.1 ¢/kWh for a 25-year contract term beyond that limit), and 8.3 ¢/kWh for a 15-year contract term, 8.4 ¢/kWh for a 20-year contract term and 8.5 ¢/kWh for a 25-year contract term for non-solar eligible renewable energy resources. At the end of FY 2019, 3MW were reserved of the program’s 3 MW limit. • EV Charger Rebate Program The California Air Resources Board (CARB) developed the Low Carbon Fuel Standard (LCFS) program in compliance with AB 32 (the Global Warming Solutions Act of 2006) to reduce the carbon intensity of transportation fuels used in California 10% by 2020. Electric utilities that provide electricity to charge electric vehicles (EVs) are eligible to receive LCFS credits. The City began participating in the program in April 2014 and CARB has been allocating LCFS credits to the City since then. Using funds from the sale of LCFS credits, CPAU launched an EV charger rebate program in FY 2017 to help build out EV infrastructure in anticipation of an increase in the number of EVs in Palo Alto from its current level of 2,500 to between 4,000 and 6,000 EVs by 2020. Staff determined that providing EVSE rebates for underserved segments of the market would be valuable which would include multi-family and mixed-use buildings, schools and non- profits. The LCFS funds are also used for EV education and outreach efforts. PROGRAMS FOR ALL CUSTOMER SEGMENTS • PV Partners CPAU has offered incentives for local solar photovoltaic (PV) installations since 1999, and the City increased the PV rebate budget in 2007 as mandated by SB 1 (2006). Residential rebates were fully reserved in August 2014, and funds for non-residential PV systems were reserved in April 2016. This program is for systems interconnected behind the customer’s electric meter, and customers receive net metering billing as required by SB 1. 23 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report • Solar Water Heating CPAU began to offer rebates to residential and commercial customers that install solar water heating (SWH) systems in 2008. The SWH rebate program was mandated by AB 1470 (2007) and is administered by the Center for Sustainable Energy, which also administers SWH rebate programs in the San Diego area. AB 797 recently extended the SWH mandate for two additional years. Incentives are limited to solar water heating for domestic use; solar water heating systems for pools, spas, or space heat are not eligible. • Green Building Ordinance In April 2015, City Council approved revisions to the City’s Green Building Ordinance (GBO), which includes the Local Energy Efficiency Reach Code requiring new construction projects to exceed California’s building energy efficiency standards (“2013 Title 24 Standards”) by 15%, i.e. a building’s energy consumption must be 15% more efficient than current building code. The Energy Efficiency Reach Code took effect in September 2015. The new 2016 Title 24 Standards went into effect in January 2017 and the GBO mandates that new buildings be 10% more efficient than the new stricter code. CPAU is coordinating with Development Services to report the energy savings attributed to the Green Building Ordinance. CPAU is currently investigating ways to educate, assist and encourage customers to adopt green building principles and energy efficient systems when planning remodeling or new construction projects. 24 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report APPENDIX B: FY 2019 ACHIEVEMENTS BY DSM PROGRAM Table B.1: FY 2019 Achievements by Efficiency Program7 Program Electric savings Gas savings Water savings kWh/yr % Therms/yr % CCF/yr % COM-Business New Construction 4,205,869 47% 6,083 4% 0 0% COM-Com. Advantage 619,266 7% 13,541 8% 0 0% COM-CIEEP 2,393,911 27% 59,289 35% 0 0% RES-HPWH -8,6108 0% 1,410 1% 0 0% RES-Home Efficiency Genie 35,641 0% 19,656 12% 12 0% RES-Home Energy Report 657,110 7% 59,886 36% 0 0% RES-MultiFamilyPlus 230,641 3% 57 0% 0 0% RES-REAP Low Inc 92,119 1% 5,666 3% 0 0% SVWD 0 0% 0 0% 14,295 11% Green Building Ordinance 753,862 8% 1,598 1% 119,935 89% Efficiency Total 8,979,809 100% 167,186 100% 134,242 100% 7 All savings reported in this table are gross amounts. Net savings can be found in this year’s state filing found here: https://www.ncpa.com/policy/reports/energy-efficiency/ 8 State utility and energy commissioners are evaluating fuel-substitution measures, like heat pump water heaters, and once a final decision is adopted, staff will align our reporting methodology for electrification measures with whatever state methodology is implemented. For this year, we are showing the increase in electricity consumption associated with heat pump water heaters as negative amount of energy savings. 25 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report Table B.2: FY 2019 Achievements by CPAU’s Solar Programs Program Number of Installations Electricity kW Saved kWh/yr % PV - Residential 64 375 600,000 15% PV – Commercial (w/ CLEAN) 15 2,091 3,345,600 85% Solar Water Heating - Single Family Residential 0 - - - Solar Water Heating - Multi- Family Residential Low-Income 0 - - - Solar Water Heating - Commercial 0 - - - Solar Programs Total 89 2,466 3,945,600 100% 26 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report APPENDIX C: HISTORICAL DSM PROGRAM EXPENDITURES The chart below shows expenditures by type from FY 2012 through FY 2019. The Solar Renewables category is the sum of expenditures for solar water heating and PV Partners programs. Figure C.1 DSM Expenditures for Electricity, Gas and Water by Year and Function $0 $1 $2 $3 $4 $5 $6 $7 2012 2013 2014 2015 2016 2017 2018 2019 Millions Fi s c a l Y e a r Electric Efficiency Gas Efficiency Water Efficiency Solar Renewables 27 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report APPENDIX D: CITY POLICIES/PLANS AND STATE MANDATES IMPACTING DSM PROGRAM GOALS AND IMPLEMENTATION CITY POLICIES/PLANS Title Description Resolution No. 9241 LEAP, the Long-term Electric Acquisition Plan (April 2012) Resolution No. 9322 Carbon Neutral Plan for Electric Supply (March 2013) Resolution No. 9402 Local Solar Plan (April 2014) Staff Report 3706 Program for Emerging Technology (April 2013) Staff Report 2552 GULP, the Gas Utility Long-term Plan (April 2012) Staff Report 6851 2015 Urban Water Management Plan (May 2016) Staff Report 7304 Sustainability and Climate Action Plan (November 2016) Staff Report 7718 Update of Ten-Year Energy Efficiency Goals for 2018 to 2027 (March 2017) FULL LIST OF STAFF REPORTS • CY 2015: cityofpaloalto.org/gov/agendas/city_managers_reports/2015.asp • CY 2016: cityofpaloalto.org/gov/agendas/city_managers_reports/2016.asp • CY 2017: cityofpaloalto.org/gov/agendas/city_managers_reports/2017.asp • CY 2018: cityofpaloalto.org/gov/agendas/city_managers_reports/2018.asp • CY 2019: cityofpaloalto.org/gov/agendas/city_managers_reports/2019.asp STATE MANDATES AB 797 (2017) Extends existing Solar Water Heating Programs and changes the terminology of “water heating” to “solar thermal.” AB 802 (2015) Requires utilities to maintain records of the energy usage data of all buildings to which they provide service for at least the most recent 12-month period and, upon the request and authorization of the owner (or owner's agent), provide aggregated energy usage data to the owner in the ENERGY STAR Portfolio Manager. AB 1164 (2015) Prohibits cities and counties from enacting or enforcing any ordinance or regulation prohibiting the installation of drought tolerant landscaping, synthetic grass, or artificial turf on residential property. AB 1236 (2015) Obliges cities and counties to adopt an ordinance, with certain specific elements, creating an expedited permitting process for electric vehicle charging stations. For a city the size of Palo Alto, the ordinance must be passed by September 30, 2017. SB 350 (2015) The Clean Energy and Pollution Reduction Act of 2015 sets targets for utilities of 50% renewable electricity retail sales and double the energy efficiency savings in 28 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report electricity and natural gas, both by 2030. The law grants compliance flexibility for POUs that achieve 50% or more of retail sales from certain large hydroelectric power. AB 2188 (2014) Requires a city and/or county to adopt an ordinance creating an expedited, streamlined permitting process for small residential rooftop solar energy systems. Executive Order Due to continued water shortages, on January 17, 2014, the Governor proclaimed a State of Emergency and directed state officials to take all necessary actions to make water immediately available. Part of the proclamation included a 20 percent water reduction goal. On April 1, 2015, the Governor issued an Executive Order (B-36-15) mandating the State Water Resource Control Board impose restrictions leading to a 25 percent reduction in potable water use through February 28, 2016. SB 1420 (2014) Added a requirement to report on distribution system water loss to the UWMP. SB 73 (2013) The California Clean Energy Jobs Act, an initiative approved by the voters as Proposition 39 at the November 2012 statewide general election, establishes a Job Creation Fund with an annual budget of $550M to create clean energy jobs, including funding energy efficiency projects and renewable energy installations in public schools, universities, and other public facilities. The Job Creation Fund will be funded for four years, beginning in the 2013-2014 fiscal year. AB 2227 (2012) AB 2227 changed the triennial energy efficiency target-setting schedule to a quadrennial schedule, beginning March 15, 2013 and every fourth year thereafter. The last EE goals update was due to be submitted to the California Energy Commission by March 15, 2017. The next EE goals update will need to be submitted by March 15, 2021. AB 2514 (2010) Mandates a local publicly owned electric utility to determine appropriate targets, if any, for the utility to procure viable and cost-effective energy storage systems and to adopt an energy storage system procurement target, if appropriate, to be achieved by the utility by December 31, 2016, and a second target to be achieved by December 31, 2021. SBx7-7 (2009) The Water Conservation Bill of 2009 requires water suppliers to reduce the statewide average per capita daily water consumption by 20% by December 31, 2020. To monitor the progress toward achieving the 20% by 2020 target, the bill also requires urban retail water providers to reduce per capita water consumption 10% by the year 2015. AB 1103 (2007) Requires electric and gas utilities maintain records of the energy consumption data of all nonresidential buildings to which they provide service and that by January 1, 2009, upon authorization of a nonresidential building owner or operator, an electric or gas utility shall upload all of the energy consumption data for the specified building to the EPA Energy Star Portfolio Manager in a manner that preserves the 29 of 29 FY 2019 Demand Side Management Annual Report Fiscal Year 2019 Demand Side Management Report confidentiality of the customer. This statute further requires a nonresidential building owner or operator disclose Energy Star Portfolio Manager benchmarking data and ratings, for the most recent 12-month period, to a prospective buyer, lessee, or lender. Enforcement of the latter requirement began on January 1, 2014. AB 1470 (2007) Solar Water Heating and Efficiency Act of 2007. Requires the governing body of each publicly owned utility providing gas service to retail end-use gas customers, to adopt, implement, and finance a solar water heating system incentive program. SB 1 (2006) The California State Legislature enacted SB 1 to encourage the installation of 3,000 megawatts (MW) of photovoltaic (PV) solar energy by the year 2017. SB 1 requires all publicly owned utilities to adopt, finance and implement a solar initiative program for the purpose of investing in and encourage the increased installation of residential and commercial solar energy systems. CPAU’s share of the state goal is 6.5 MW. In 2007, CPAU increased the PV Partners program funding to meet SB1 requirements. CPAU has fully reserved all rebate funds as of April 2016. AB 2021 (2006) Requires the CEC on or before November 1, 2007, and every 3 years thereafter, in consultation with the commission and local publicly owned electric utilities, to develop a statewide estimate of all potentially achievable cost-effective electricity and natural gas efficiency savings and establish statewide annual targets for energy efficiency savings and demand reduction over 10 years. AB 1881 (2006) Requires cities and counties to implement a Water Efficient Landscape Ordinance which is “at least as effective as” the Department of Water Resources (DWR) Model Ordinance in reducing landscape water use. Requirements include enforcing water budgets, planting and irrigation system specifications to meet efficiency criteria. SB 1037 (2005) Requires each local publicly owned electric utility, in procuring energy, to first acquire all available energy efficiency and demand reduction resources that are cost- effective, reliable, and feasible. Also requires each local publicly owned electric utility to report annually to its customers and to the (CEC) its investment on energy efficiency and demand reduction programs. AB 1890 (1996) Requires electric utilities to fund low-income ratepayer assistance programs, public purpose programs for public goods research, development and demonstration, demand- side management and renewable electric generation technologies AB 797 (1983) The Urban Water Management Planning Act (AB 797) requires all California urban water retailers supplying more than 3,000 acre feet per year or providing water to more than 3,000 customers to develop an UWMP. The plan is required to be updated every five years and submitted to the Department of Water Resources before December 31 on years ending in 5 and 0. City of Palo Alto (ID # 11305) City Council Staff Report Report Type: Informational Report Meeting Date: 5/18/2020 City of Palo Alto Page 1 Summary Title: Summary of Emerging Needs Fund Allocations to Assist with COVID-19 Response Title: Summary of Emerging Needs Fund Allocations to Assist with COVID-19 Response From: City Manager Lead Department: Community Services This is an informational report. No Council action is requested at this time. Emerging Needs Fund Allocations to Assist with COVID-19 Response Background The Human Services Emerging Needs Fund (referred to as HSRAP Contingency Fund) is an ongoing annual allocation of $50,000 intended to assist nonprofits serving Palo Alto residents with short-term and/or urgent human service needs. Per guidelines approved by City Council on 3/27/17, the Community Services Department, Office of Human Services utilizes these funds to offset costs that occur outside of the HSRAP grantee cycle, potentially including both new grantees and special hardship cases for existing grantees that would otherwise preclude them from continuing their service to the community. There are four application periods per year. This is the fourth application cycle for FY20 and aims to fund needs and expenses related to the COVID-19 pandemic, specifically providing food, shelter, medical care, mental health care and transportation. There was $33,300 remaining in the HSRAP Contingency Fund at the time of this grant cycle. Discussion Funding requests were received by ten applicants (Attachment A). The maximum amount of funding that can be requested is $10,000 per applicant. Typically, applicants are not eligible for funding if they have received Emerging Needs funding in the last two years. However, given the critical need of services provided by many of Palo Alto’s nonprofits during the pandemic, an exception was made for this grant cycle. City of Palo Alto Page 2 Applications were reviewed by a committee consisting of Human Relations Commissioners Steven Lee and Patti Regehr, and Community Services Manager Elise DeMarzo. The Committee made their initial funding recommendations based on the fund balance in the HSRAP Contingency Fund. The two applicants who were not recommended for funding by the committee include Magical Bridge Foundation and My Digital TAT2 because their funding requests were not for essential needs (food, shelter, medical care, etc.). The Committee offered a secondary recommendation that all of the applicants be fully funded if an additional funding source is identified. Staff agreed with this recommendation for those applicants providing essential human needs and identified a funding source from Community Services Department (CSD) operating cost savings to fully fund the requests of these nonprofits. The savings identified by CSD are the result of cancelling community events and classes, in compliance with Santa Clara County Health Department’s Shelter in Place Order. Attachment A includes the amount that each applicant received in funding through the Emerging Needs Fund. Resource Impact In addition to the $33,300 remaining in the Emerging Needs Fund (HSRAP Contingency Fund), additional funds from cost savings were identified to assist with funding the full amount of those nonprofits providing essential needs to the community. These funds were drawn from a variety of program areas in CSD that experienced class and event cancellations due to the Shelter in Place Order and therefore were able to be reallocated to HSRAP activities. Policy Implications The Emerging Needs Fund Policy was approved by City Council on March 27, 2017 (Staff Report #7802). A revised Policy was approved by City Council on August 19, 2019 (Staff Report #10497). Stakeholder Engagement Applications to the Emerging Needs Fund were sent out to over thirty nonprofits addressing the human services needs of Palo Alto residents, primarily from a list that Human Services staff had created from past HSRAP Request for Proposal periods and checked against a list of Palo Alto based nonprofits. Attachments: • Attachment A: Funding Allocations COVID-19 Attachment A COVID-19 Emerging Needs Fund Applications Agencies Grant Description Grant Request Amount Awarded Avenidas Avenidas Rose Kleiner Center – services to home-bound seniors. $10,000.00 $10,000.00 Downtown Streets Team Food Closet - funds for stipends for Team Members due to food costs and decrease in volunteers and supplies. $10,000.00 $10,000.00 Heart & Home Collaborative Increasing shelter services by 6 weeks and allowing shelter residents to shelter in place 24 hours per day. $10,000.00 $10,000.00 LifeMoves Client assistance & emergency assistance - grocery gift cards, housing emergency assistance, cleaning supplies, thermometers, and administration $10,000.00 $10,000.00 Magical Bridge Virtual concerts $7,500.00 0 My Digital TAT2 "Coping with Coronavirus” podcast for teens in Palo Alto $9,040.00 0 Palo Alto Housing Grocery gift cards for low income families $10,000.00 $10,000.00 Peninsula Healthcare Connection Telehealth - online virtual visits- 2 computer systems, speakers and devices for patient log-in $5,000.00 $5,000.00 Project WeHope Funds would be used to reinstate the showers at the Kurt Kumli Resource Center to help mitigate the spread of COVID-19 $9,600.00 $9,600.00 Vista Center for the Blind and Visually Impaired Virtual wellness & counseling support - phone counseling (medical care & mental health), direct assistance for food resources & medicine and technology training $10,000.00 $10,000.00 $91,140.00 $74,600.00