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HomeMy WebLinkAbout2020-06-23 City Council Agenda PacketCity Council 1 Tuesday, June 23, 2020 Special Meeting Virtual Meeting 5:00 PM ****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 Special Orders of the Day 5:00-5:15 PM 1.Appointment of two Candidates to the Utilities Advisory Commission for Three-year Terms Ending May 31, 2023 Oral Communications 5:15-5:45 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 5:45-5:50 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 2.Authorize the City Manager to Place "Black Lives Matter" on a City Street Near Palo Alto City Hall REVISED- THIS AGENDA HAS BEEN REVISED BY COUNCIL MOTION ON JUNE 22, 2020 Public Comment 2 June 23, 2020 3.Approval of a Lease Agreement Between Palo Alto Unified School District (PAUSD) and the City of Palo Alto for the Cubberley Community Center for 54 Months, Not-to-Exceed $2,733,280 per Year 4.Adoption of a Resolution Continuing the Proclamation of Local Emergency due to COVID-19 4A. (FORMER AGENDA ITEM NUMBER 9)Approval of Amendment Number 2 to Contract Number C18171057 With AECOM for Continued and Expanded Services for the Connecting Palo Alto Rail Grade Separation, PL-17001, Effort and to Increase Compensation by $309,872 for a Total Not-to-Exceed Amount of $2,794,658; and Approval of an Updated Rail Workplan (THIS ITEM WAS MOVED TO CONSENT BY A MOTION OF THE COUNCIL ON JUNE 22, 2020) Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 5:50-7:30 PM 4B. PUBLIC HEARING / QUASI-JUDICIAL. 488 University Avenue [19PLN- 00038]: Request for a Waiver From Title 18 to Allow Conversion of a Residential use to a Hotel use to Accommodate 100 Guestrooms. In Addition, the Applicant Requests Approval of an Architectural Review and Historic Review Application for Interior and Exterior Renovations to the Hotel President to This Category 2 Historic Building, as Well as a Parking Adjustment to Accommodate the Conversion to a Hotel use. The Project Also Includes a Conditional Use Permit to Allow for Restoration and use of a Historic Rooftop Garden and for the On-site Sale of Alcoholic Beverages. Proposed Revisions Include Structural and Seismic Retrofit of the Existing Structure. Zone District: Downtown Commercial District With Ground Floor and Pedestrian Overlays (CD- C)(GF)(P). Environmental Assessment: Exempt From the Provisions of the California Environmental Quality Act (CEQA) Pursuant to Guidelines Sections 15332 (In-fill Development), 15331 (Historical Resource Restoration/Rehabilitation), 15301 (Existing Facilities), and 15302 (Replacement or Reconstruction) (THIS ITEM WAS CONTINUED FROM JUNE 22, 2020 TO THIS EVENING) 7:30-8:00 PM 5.PUBLIC HEARING: Adoption of a Resolution to Suspend Assessments for Fiscal Year 2021 on the Downtown Palo Alto Business Improvement District (BID) 6.Discuss the Parks and Recreation Commission's Pilot Program to Increase Access to Foothills Park for Nonresidents and Provide Public Comment Public Comment Presentation Public Comment Presentation Applicant Presentation 3 June 23, 2020 Direction to Staff (THIS ITEM WAS CONTINUED BY COUNCIL ON JUNE 22, 2020 TO A DATE IN AUGUST) 8:00-9:00 PM 7.Adoption of an Urgency Interim Ordinance Temporarily Allowing Expansion of Outdoor Dining, Retail, and Other Activities on Public and Private Property; Relaxing Regulations Regarding: 1) Onsite Parking, 2)On-sale and Consumption of Alcohol, 3) Design/Architectural Review, and 4) Permit Fees to Facilitate Such Outdoor use; and Adoption of a Resolution Authorizing Temporary Street Closures of California Avenue, University Avenue and Adjacent Downtown Blocks; and Approving a Temporary Pilot Parklet Program Including Standards and Requirements 8.Discussion and Direction to Staff on Housing Affordability Requirements for Projects Proposed Under the Planned Home Zoning (PHZ) (Planned Community Zoning) (THIS ITEM WAS CONTINUED BY COUNCIL ON JUNE 22, 2020 TO A DATE IN AUGUST) 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. 9.Approval of Amendment Number 2 to Contract Number C18171057 With AECOM for Continued and Expanded Services for the Connecting Palo Alto Rail Grade Separation, PL-17001, Effort and to Increase Compensation by $309,872 for a Total Not-to-Exceed Amount of $2,794,658; and Approval of an Updated Rail Workplan (THIS ITEM HAS BEEN MOVED TO CONSENT) Presentation Public Comment Presentation 4 June 23, 2020 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 OFFICE OF THE CITY CLERK June 23, 2020 The Honorable City Council Palo Alto, California Appointment of two Candidates to the Utilities Advisory Commission for Three-year Terms Ending May 31, 2023 On Tuesday, June 23, 2020, the Council is scheduled to appoint two candidates to the Utilities Advisory Commission (UAC) for three-year terms ending May 31, 2023. Background On June 2, 2020 the Council interviewed applicants for the UAC. The Staff Report for the interviews can be viewed here. Applications can be viewed here. A recording of the interviews can be viewed online on the City Council Agenda and Minutes Webpage. Utilities Advisory Commission Vote to appoint two candidates to the UAC for three-year terms ending May 31, 2023. The first two candidates to receive at least four votes (required) will be appointed. The 4 UAC Candidates are as follows: 1. Claude Ezran 2. Lisa Forssell (Incumbent) 3. Phil Metz 4. Lauren Segal (Incumbent) Department Head: Beth Minor, City Clerk Page 2 City of Palo Alto (ID # 11454) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/23/2020 City of Palo Alto Page 1 Summary Title: Place Black Lives Matter on a City Street Near City Hall Title: Authorize the City Manager to Place "Black Lives Matter" on a City Street Near Palo Alto City Hall From: City Manager Lead Department: Community Services Recommendation Staff recommends City Council adopt the following motion: 1. In solidarity with the Mayor of Washington, D.C. and the Black Lives Matter movement, joining other cities around the country, authorize the City Manager to place the words "Black Lives Matter" on a City street (or streets) near Palo Alto City Hall as soon as practicable. 2. The City Manager is authorized to approve a specific design and location in consultation with the Public Art Commission and the community and in conformance with Council’s direction above. The City Manager will also consider the relationship with other street markings intended for traffic control. Background and Discussion On June 15, 2020, the City Council directed the Public Art Commission to explore public art honoring diversity, and work with the community to paint “Black Lives Matter” or a similar message near City Hall, as soon as possible. Staff returns to Council with the recommended motion above to authorize the painting on a street or streets in front of or near City Hall. This action confirms the City Council’s direction to waive technical and process requirements as needed to affect changes to public streets, protect the City from liability, and expedite this effort. The Public Art Commission will work with staff to find and select artists to develop the “Black Lives Matter” design and for the City Manager’s final approval. In reviewing the design and placement, the Public Art Commission and City Manager will take care to consider existing street markings, such as lane markings and pedestrian crossings. City of Palo Alto Page 2 Timeline If City Council approves of the recommended motion, staff will work with the PAC to outreach to artists and invite design proposals. PAC will review the designs and make a recommendation to the City Manager for final approval. Once a final concept is approved, it is envisioned that actual painting will occur on one day to prevent prolonged road closures. Resource Impact The Fiscal Year (FY) 2021 Proposed Budget, which is still subject to City Council approval on June 22, 2020, includes sufficient funding to support anticipated expenses of this project. The project will be funded in compliance with existing Public Art policies. The Public Art Commission will make a recommendation on number of artists and locations, which will determine the project budget, estimated by staff to range from $10,000 to $15,000. The Police and Public Works Departments will assist with necessary road closures, expected to be no more than two days. Stakeholder Engagement A petition letter signed by over 1,000 individuals in support of painting Black Lives Matter on Hamilton Avenue in front of City Hall was sent to City Council earlier this month. As discussed above, the process will involve community involvement and outreach to artists and selection of the artists through the Public Art Commission. Environmental Review The subject project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the City’s environmental regulations. Specifically, the City, acting as the Lead Agency, finds this project exempt from CEQA in accordance with CEQA Guidelines Section 15301 (Existing Facilities). City of Palo Alto (ID # 11460) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/23/2020 City of Palo Alto Page 1 Summary Title: Cubberley Lease Agreement Title: Approval of Lease Agreement Between Palo Alto Unified School District and City of Palo Alto for Cubberley for 54 Months, Not-to-Exceed $2,733,280 per Year From: City Manager Lead Department: Administrative Services Recommended Motion Staff recommends that Council authorize the City Manager to execute the Lease Agreement contained in Attachment A between Palo Alto Unified School District (PAUSD) and the City of Palo Alto (City) for the Cubberley premises for a 54-month term ending December 31, 2024, at an annual rent of between $2,500,000 and $2,733,280, depending on the amount of space occupied. Executive Summary On June 15, 2020, City Council authorized the City Manager to execute the same lease agreement for Cubberley that is recommended in this memorandum, except for the length of the term (Report ID # 11386). Based on feedback from school officials, and in continued partnership with PAUSD, City Council unanimously endorsed placing the 54- month lease agreement (Attachment A) for approval on the June 22, 2020 consent calendar as reported out at the June 17, 2020 City Council meeting. Background The City currently leases approximately 27 acres from PAUSD at Cubberley and offers various services and resources through those facilities including short term and long- term rentals, fields, gyms, and theater, as well as an auditorium. The original lease Agreement was for 15 years, beginning January 1, 1990 and ending on December 31, 2004. Since 1989, City staff and PAUSD have entered into several lease amendments and other agreements regarding the site needs. The City exercised its first option to extend the lease for an additional ten years through December 31, 2014 and its second option to extend the lease through December 31, 2019. PAUSD consented to the City’s request to continue its tenancy on a month-to-month basis beginning on January 1, 2020. Due to the negative impacts to the City’s budget from the events surrounding City of Palo Alto Page 2 COVID-19 and the request by PAUSD to retain portions of Cubberley, a new lease for Cubberley has been negotiated to reduce the City’s use of the premises and the corresponding cost. Discussion On June 15, 2020, City Council authorized the City Manager to execute the same lease agreement for Cubberley that is recommended in this memorandum, except for a 30- month term rather than a 54-month term (Report ID # 11386). Based on feedback from school officials, and in continued partnership with PAUSD, City Council unanimously endorsed placing the 54-month lease agreement (Attachment A) for approval on the June 22, 2020 consent calendar. Council tentatively approved the new amount for the Cubberley lease recommended in this memorandum as part of the FY 2021 proposed budget hearings in May. Council is scheduled to adopt the FY 2021 budget on June 22. Additional information including financials and tenants were provided to the City Council during the budget hearings and can be found here: http://cityofpaloalto.org/civicax/filebank/documents/76655. Timeline PAUSD’s Board approved the Cubberley lease at its May 26, 2020 meeting. Staff issued termination notices to affected tenants at Cubberley, effective June 29, 2020. The new lease will commence on July 1, 2020. Council is scheduled to adopt the FY 2021 budget, which includes the new Cubberley lease, on June 22, 2020. Resource Impact Currently, the City pays a base rent to PAUSD for the use of the 27 acres of Cubberley facilities of $5.4 million. The City covers the operations and maintenance costs of approximately $2.6 million annually including the utilities for the facility. In addition, the City earns both short-term and long-term rental receipts of $1.6 million annually. Ultimately resulting in a net cost to the City of $6.4 million. Under this new agreement, the base rent for the new Cubberley lease will be reduced from $452,487 per month ($5,429,844/yr.) to $227,773 ($2,733,276/yr.). The operating and maintenance costs are expected to continue at current levels noted above however, the City will now be reimbursed by PAUSD for a portion of their share. Lastly, as a result of the reduced area, it is expected that both short-term rental revenues and long- term lease revenues will reduce however, the estimated amounts are currently unknown at this time. Staff continues to work to find new space for displaced tenants. The FY 2021 Proposed budget assumes a net savings of $2.5 million in net cost to the City, this will be monitored closely to ensure these terms and impacts mange within this estimate. Although not a term in this revised lease agreement, the City expects to continue contributing $1,864,248 annually into the Cubberley Property Infrastructure Fund. City of Palo Alto Page 3 Policy Implications Amending the Lease Agreement at Cubberley Community Center is consistent with policies and programs in the Comprehensive Plan promoting City-PAUSD collaboration and the effective provision of community services. Stakeholder Engagement The City and PAUSD collaborated on development of a new agreement containing these terms. City staff have delivered termination notices and are proactively seeking potential alternative spaces to relocate those tenants and renters affected at Cubberley. Staff will work with PAUSD to propose releasing a joint press release on June 22, 2020, explaining the future use of Cubberley Environmental Review This does not constitute a project for purposes of the California Environmental Quality Act (CEQA). Attachments: • Attachment A: Cubberley Lease LEASE AGREEMENT BY AND BETWEEN PALO ALTO UNIFIED SCHOOL DISTRICT AS LANDLORD and CITY OF PALO ALTO, A CALIFORNIA CHARTERED MUNICIPAL CORPORATION AS TENANT TABLE OF CONTENTS PAGE 1.DEMISE. ...............................................................................................................................6 2. PREMISES. ............................................................................................................................6 2.1 Premises ...................................................................................................................6 2.2 Possession ................................................................................................................6 2.3 Termination of Original Lease .................................................................................6 3. TERM ...................................................................................................................................7 4. RENT. ...................................................................................................................................7 4.1 Base Rent .................................................................................................................7 4.2 Additional Rent ........................................................................................................7 5. TAXES. .................................................................................................................................7 5.1 Reserved ...................................................................................................................7 5.2 Taxes ........................................................................................................................7 5.3 Nonuse Payments .....................................................................................................8 6. UTILITIES .............................................................................................................................8 7. ALTERATIONS. .....................................................................................................................8 7.1 Tenant Alterations ....................................................................................................8 7.2 Liens .........................................................................................................................8 8. MAINTENANCE AND REPAIR OF PREMISES. ........................................................................9 8.1 Maintenance and Repair by Tenant .........................................................................9 8.2 Maintenance and Repair by Landlord ......................................................................9 9. ENVIRONMENTAL PROTECTION PROVISIONS.....................................................................9 9.1 Hazardous Materials ................................................................................................9 9.2 Environmental Indemnity ......................................................................................10 10. ASSIGNMENT AND SUBLETTING. .......................................................................................10 11. INDEMNITY AND WAIVER OF CLAIMS. .............................................................................10 11.1 Tenant Indemnification ..........................................................................................10 11.2 Landlord Indemnification ......................................................................................11 11.3 Survival/No Impairment ........................................................................................11 12. INSURANCE. .......................................................................................................................11 12.1 Tenant’s Insurance .................................................................................................11 1 TABLE OF CONTENTS (CONTINUED) PAGE 12.2 Certificates of Insurance ........................................................................................11 13. DAMAGE OR DESTRUCTION. .............................................................................................12 13.1 Repair Obligations .................................................................................................12 13.2 Abatement of Rent .................................................................................................12 14. CONDEMNATION. ...............................................................................................................12 15. DEFAULT. ...........................................................................................................................12 15.1 Events of Default ...................................................................................................12 15.2 Remedies ................................................................................................................13 15.3 No Waiver ..............................................................................................................13 15.4 Landlord’s Breach ..................................................................................................13 16. SURRENDER OF PREMISES. ................................................................................................13 17. HOLDING OVER. ................................................................................................................14 18. NOTICE. .............................................................................................................................14 19. EARLY TERMINATION BY TENANT. ..................................................................................14 19.1 Debt Limitation ......................................................................................................14 19.2 Gann Limit .............................................................................................................14 19.3 Restriction on Taxing Power .................................................................................14 20. RESERVED ..........................................................................................................................15 21. RESERVED ..........................................................................................................................15 22. MISCELLANEOUS. ..............................................................................................................15 22.1 Governing Law ......................................................................................................15 22.2 Severability ............................................................................................................15 22.3 Attorneys’ Fees ......................................................................................................15 22.4 Force Majeure ........................................................................................................15 22.5 Brokers ...................................................................................................................15 22.6 Access by Landlord................................................................................................15 22.7 Waiver of Right to Jury Trial .................................................................................16 22.8 Article and Section Titles.......................................................................................16 22.9 Quiet Possession ....................................................................................................16 22.10 Asbestos Notification for Commercial Property Constructed Before 1979 ..........16 2 TABLE OF CONTENTS (CONTINUED) PAGE 22.11 Lead Warning Statement........................................................................................16 22.12 Certified Access Specialist Disclosure ..................................................................16 22.13 Time of the Essence ...............................................................................................17 22.14 Entire Agreement ...................................................................................................17 22.15 Counterparts ...........................................................................................................17 INDEX OF EXHIBITS Exhibit A Property B Premises C Space Used by City D Space Used by PAUSD 3 LEASE AGREEMENT BASIC LEASE INFORMATION Lease Date: Dated as of [Insert date in DocuSign] for reference purposes only Landlord: Palo Alto Unified School District Landlord’s Address: Palo Alto Unified School District 25 Churchill Avenue Palo Alto, CA 94306 Attn: Superintendent of Schools Tenant: City of Palo Alto Tenant’s Address: City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 Attn: Manager, Real Property Property: The 27.48-acre Cubberley School consisting of approximately 15.94 acres of outdoor recreational area and an additional 11.54 acres of land improved with walkways, a parking lot, and 104,600 square feet of buildings, as depicted in Exhibit A (“Property”). Usable Area: Approximately 807,486 square feet of area consisting of 15.94 acres (694,346 square feet) of outdoor recreational area and 104,600 square feet of buildings (“Usable Area”). Premises: A portion of the Usable Area consisting of the theater, pavilion, Gym A, Gym B, Rooms G5 and G8, JMZ (Junior Museum and Zoo), S Building, fields, and all other areas marked as Leased by City in Exhibit B, containing approximately 65,046 rentable square feet of building area and 15.94 acres of outdoor recreational area, located in the City of Palo Alto and more particularly described and depicted in Exhibit B (“Premises”). It is understood that such acreage and square footage figures are only approximate and have not been precisely determined. Length of Term: 54 months Commencement Date: July 1, 2020 Expiration Date: December 31, 2024 Extension Option: None 4 Monthly Base Rent: $208,333.33 per month for use of the theater, pavilion, Gym A, Gym B, Rooms G5 and G8, and fields $13,790.00 per month for use of the JMZ (Junior Museum and Zoo) $5,650.00 per month for use of the S Building Tenant’s Share: 58.81%, as reasonably adjusted for changes in the physical size of the Premises, Usable Area, or the Property occurring thereafter (“Tenant’s Share”) See breakdown of calculation in Exhibit C. Landlord’s Share: 41.19%, as reasonably adjusted for changes in the physical size of the Premises, Usable Area, or the Property occurring thereafter (“Landlord’s Share”) See breakdown of calculation in Exhibit D. Security Deposit: $0 Permitted Use: Any use permitted by law Brokers: None 5 LEASE AGREEMENT THIS LEASE AGREEMENT is made and entered into by and between PALO ALTO UNIFIED SCHOOL DISTRICT (“Landlord” or “District”) and CITY OF PALO ALTO, a California chartered municipal corporation (“Tenant” or “City”). The Basic Lease Information, the Exhibits and this Lease Agreement are and shall be construed as a single instrument and are referred to herein as the “Lease”. 1. DEMISE. In consideration for the rents and all other charges and payments payable by Tenant, and for the agreements, terms and conditions to be performed by Tenant in this Lease, Landlord does hereby lease to Tenant and Tenant does hereby hire and take from Landlord, the Premises described below, upon the agreements, terms and conditions of this Lease for the Term hereinafter stated. 2. PREMISES. 2.1 Premises. The Premises demised by this Lease are as specified in the Basic Lease Information. The Premises have the address and contain the square footage specified in the Basic Lease Information; provided, however, that any statement of square footage set forth in this Lease is an approximation which Landlord and Tenant agree is reasonable and no economic terms based thereon shall be subject to revision whether or not the actual square footage is more or less. Tenant shall have the right to reduce the Premises by surrendering the JMZ and/or S Building back to Landlord upon 30 days written notice. City intends to surrender the JMZ Building to Landlord after completion of a new museum building (that is not located on the Property) and moving to that new building. The portion of the Property including, but not limited to, parking, walkways, restrooms, and other portions of the Property which are non-exclusive are collectively referred to herein as the “Common Areas”. Tenant shall have the non-exclusive right during the Term to use the Common Areas along with others having the right to use the Common Areas. 2.2 Possession. Tenant accepts the Premises in its current condition and configuration without any representations or warranties by Landlord, and subject to all matters of record and all applicable laws, ordinances, rules and regulations. Tenant acknowledges that it is currently in possession and has been in possession of the Property under that certain Lease and Covenant Not to Develop, dated September 1, 1989, as amended by that certain Amendment No. 1, dated July 21, 1998, and as further amended by that certain Amendment No. 2, dated August 13, 2002, and , and as further amended by that certain Amendment No. 3, dated as of January 1, 2015 (collectively the “Original Lease”). 2.3 Termination of Original Lease. As of the Lease Commencement Date identified in the Basic Lease Information above, the Original Lease shall be deemed terminated and, except for such obligations which expressly survive termination, the parties shall have no further rights or obligations thereunder. Tenant’s right of continued occupancy of the Premises shall thereafter be solely pursuant to the terms of this Lease. 6 3. TERM. The term of this Lease (“Term”) shall be for the period specified in the Basic Lease Information, commencing on the Commencement Date (“Commencement Date”). This Lease shall terminate at midnight on December 31, 2024 (“Expiration Date”), unless sooner terminated or extended as hereinafter provided. 4. Rent. 4.1 Base Rent. (a) Generally. From and after the Commencement Date, Tenant shall pay to Landlord, in advance of the first day of each calendar month, without any setoff or deduction and without further notice or demand, the monthly installments of rent specified in the Basic Lease Information (“Base Rent”). If the Commencement Date should be on a date other than the first day of a calendar month, the Monthly Base Rent installment paid for any fractional month during the Term shall be prorated based upon a thirty (30) day calendar month. If Tenant exercises its right to reduce the Premises, Base Rent shall be reduced by $13,790.00 per month if the JMZ Building is surrendered and $5,650.00 per month if the S Building is surrendered. 4.2 Additional Rent. As used in this Lease, the term “Additional Rent” shall mean all sums of money, other than Base Rent, that are due and payable by Tenant under the terms of this Lease. The term “Rent,” as used herein, shall mean all Base Rent, Additional Rent and all other amounts payable hereunder from Tenant to Landlord. Unless otherwise specified herein, all items of Rent other than Base Rent shall be due and payable by Tenant on or before the date that is thirty (30) days after billing by Landlord. 5. TAXES. 5.1 Reserved. 5.2 Taxes. Tenant shall reimburse to Landlord as Additional Rent Tenant’s Share of all Taxes as herein defined within thirty (30) days after receipt of an invoice and proof of payment from Landlord. Payments for any fractional period shall be prorated. For purposes of this Section 5.2, the term “Taxes” shall mean all taxes, assessments, fees, impositions, assessments and charges levied (if at all) upon or with respect to the Premises, personal property of Landlord used in the operation of the Premises or Landlord’s interest in the Premises. Taxes shall include, without limitation and whether now existing or hereafter enacted or imposed, all general real property taxes, all general and special bonds and assessments, all charges, fees and levies for or with respect to transit, housing, police, fire, flood control, infrastructure, or other governmental or quasi-governmental services or purported benefits to or burdens attributable to the Premises, that are now or hereafter levied or assessed against Landlord or the Premises by the United States of America, the State of California, the City of Palo Alto, or any other political or public entity, and shall also include any other tax, fee or other excise, however described, that may now or hereafter be levied or assessed as a substitute for, or as an addition to, in whole or in part, any other Taxes, whether or not now customary or in the contemplation of the parties on the date of this Lease. Taxes shall not include any increase as the result of any transfer of Premises. Tenant shall pay any taxes levied or assessed against personal property or trade fixtures placed by Tenant in or about the Premises during the Term. The interest created by this Lease may at 7 some time be subject to property taxation under the laws of the State of California. If property taxes are imposed, the party in whom the possessory interest is vested may be subject to the payment of the taxes levied on such interest. This notice is included in this Lease pursuant to the requirements of section 107.6 (a) of the Revenue and Taxation Code of the State of California. 5.3 Nonuse Payments. In the event any nonuse payments or taxes are levied against the Premises, or any portion thereof, in accordance with any section of the California Education Code, Landlord shall initially be responsible for the payment of any such non-use payments or taxes. Landlord may invoice Tenant for 75% of the non-use payment or taxes paid. Said invoice to Tenant shall be accompanied by proof of payment by Landlord. Tenant shall thereafter reimburse the paying party within thirty (30) days after receipt of said invoice and proof of payment. 6. UTILITIES. Tenant shall contract directly with the providers of, and shall pay all charges for water, sewer, storm water, gas, electricity, and refuse collection to be furnished to the Property, together with all related installation or connection charges or deposits (“Utilities”). If any such Utilities are not separately metered or billed to Tenant for the Premises but rather are billed to and paid by Landlord, Tenant shall reimburse Landlord, as Additional Rent, its pro rata share of the cost of such services, within thirty (30) days after receipt of Landlord’s proof of payment of the same. If any Utilities are not separately metered, Landlord shall have right to determine Tenant’s consumption by either submetering, survey, or other methods designed to measure consumption with reasonable accuracy. 7. ALTERATIONS. 7.1 Tenant Alterations. Tenant may make any alterations, improvements, additions or structural changes, exclusive of any maintenance or repair obligations of Tenant under Section 8.1 (each an “Alteration”) of whatever nature it deems necessary for its free use and enjoyment of the Premises without Landlord approval. The foregoing notwithstanding, for any Alterations for which the estimated cost will exceed Three Hundred Thousand Dollars ($300,000.00), Tenant shall be required to provide Landlord with written notice thereof not less than thirty (30) days prior to commencing work. Said notice shall include plans and specifications depicting the Alterations and, upon completion, Tenant shall furnish Landlord with a set of “as built” plans for the Alterations. Any Alterations shall be at Tenant’s sole cost and expense, unless otherwise agreed upon in writing by Landlord. Alternations shall be made in compliance with all applicable laws. In the event any such Alterations are subject to the Field Act, Ed. Code, §§39140-39159, 39210-39232, 81130-81147, it shall be the sole responsibility of Tenant to obtain such permits or approvals from the Department of General Services as may be required for any such Alterations. Landlord agrees to reasonably cooperate with Tenant in securing any such approvals. 7.2 Liens. Tenant shall pay when due all claims for labor or materials furnished Tenant for use in the Premises. Tenant shall not permit any mechanic liens, stop notices, or any other liens against the Premises, or any of Tenant’s interests under this Lease for any labor or materials furnished to Tenant in connection with work performed on or about the Premises by or at the direction of Tenant. Tenant shall indemnify, hold harmless and defend Landlord from any liens and encumbrances arising out of any work performed or materials furnished by or at the 8 direction of Tenant. In the event that Tenant does not, within ninety (90) days following the imposition of any such lien or stop notice, cause such lien or stop notice to be released of record by payment or posting of a proper bond, or otherwise Landlord shall have, in addition to all other remedies provided herein or by law, the right, but not the obligation, to cause the same to be released by such means as it may deem proper, including payment of the claim giving rise to such lien. All such sums paid by Landlord and expenses reasonably incurred in connection therewith, including reasonable attorneys’ fees and costs, shall be payable to Landlord by Tenant within thirty (30) days of Tenant’s receipt of an invoice from Landlord, which invoice shall document all such sums paid. 8. MAINTENANCE AND REPAIR OF PREMISES. 8.1 Maintenance and Repair by Tenant. Tenant shall maintain the Property in substantially the same condition as of the Commencement Date of this Lease Term, subject to Landlord reimbursement at the following rates: Landlord’s reimbursement rate for Common Areas will be at the rate of Landlord’s share, as detailed in Basic Lease Information. Areas of the Property that are not the Premises or Common Areas will be at the rate of 100%. Landlord shall reimburse Tenant within thirty (30) days of receipt of invoice from Tenant. Tenant’s repair and maintenance obligations include, without limitation, repairs to: all interior and exterior work and Common Areas on the Property, and all janitorial, pest control, plumbing, fire sprinkler, sewage, heating, ventilation, air-conditioning, roof repair and replacement, electrical and lighting facilities, irrigation systems, fences, landscaping, litter collection and removal. Tenant shall further, at its own costs and expense, repair or restore any damage or injury to all or any part of the Property caused by Tenant or Tenant’s agents, employees, invitees, licensees, visitors or contractors, including but not limited to repairs or replacements necessitated by (i) the construction or installation of Alterations to the Premises by or on behalf of Tenant; (ii) the moving of any property into or out of the Premises; or Tenant’s use and occupancy of the Premises. In the event that any law, regulation or mandate requires the expenditure in excess of $250,000 to bring the Property into compliance the parties shall negotiate in good faith a cost sharing agreement as between Landlord and Tenant for any amount in excess of $250,000. If no agreement is reached after ninety (90) days from the commencement of negotiations, the parties agree to resolve the matter through the option available in Section 22.7 of this Lease. 8.2 Maintenance and Repair by Landlord. Landlord shall, at its own cost and expense, perform maintenance or repair of the Property when necessitated by the negligence or willful misconduct of Landlord, and with respect to the remediation of any Hazardous Materials (as defined herein below) that existed on, about or under the Property as of the commencement of the term under the Original Lease. 9. Environmental Protection Provisions. 9.1 Hazardous Materials. “Hazardous Materials” shall mean any material, substance or waste that is or has the characteristic of being hazardous, toxic, explosive, radioactive or corrosive, including, without limitation, petroleum, solvents, lead, acids, pesticides, paints, PCBs, asbestos, materials commonly known to cause cancer or reproductive harm and those materials, substances and/or wastes, including wastes which are or later become regulated by any local governmental authority, the state in which the Premises are located or the 9 United States Government, including, but not limited to, substances defined as “hazardous substances,” “hazardous materials,” “toxic substances” or “hazardous wastes” in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. §9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. §1801, et seq.; the Resource Conservation and Recovery Act; all environmental laws of the state where the Premises are located, and any other environmental law, regulation or ordinance now existing or hereinafter enacted. “Hazardous Materials Laws” shall mean all present and future federal, state and local laws, ordinances and regulations, prudent industry practices, requirements of governmental entities and manufacturer’s instructions relating to industrial hygiene, environmental protection or the use, analysis, generation, manufacture, storage, presence, disposal or transportation of any Hazardous Materials, including without limitation the laws, regulations and ordinances referred to in the preceding sentence. 9.2 Environmental Indemnity. Tenant shall indemnify and hold Landlord harmless from any and all costs, claims, judgments, including Landlord’s reasonable attorney’s fees and court costs, relating to the storage, placement or use of Hazardous Materials by Tenant on or about the Premises. Tenant shall reimburse Landlord for (i) all costs of cleaning up or other alterations to the Premises necessitated by Tenant’s use, storage or disposal of Hazardous Materials at the Premises; and (ii) any diminution in the fair market value of the Premises caused by Tenant’s use, storage or disposal of Hazardous Materials in the Premises. Landlord shall indemnify and hold Tenant harmless from any and all costs, claims, judgments, losses, demands, causes of action, proceedings or hearings, including Tenant’s reasonable attorney’s fees and court costs, relating to the storage, placement or use of Hazardous Materials or underground tanks existing on or about the Premises placed there by Landlord or which existed before the commencement of this Lease Term. The obligations of Tenant and Landlord under this Section 9.2 shall survive the expiration of the Lease Term. 10. ASSIGNMENT AND SUBLETTING. Tenant may at any time, and from time to time, sublease all or any portion of the Premises without first obtaining the consent of Landlord. Landlord acknowledges that as of the Lease Date identified in the Basic Lease Information, there are various subleases entered into by Tenant under the Original Lease. Unless explicitly agreed to in writing by Landlord, no assignment or subleasing of all or any portion of the Premises shall release or discharge Tenant of or from any of its obligations hereunder. 11. INDEMNITY AND WAIVER OF CLAIMS. 11.1 Tenant Indemnification. Tenant shall indemnify, defend and hold Landlord harmless against and from all liabilities, obligations, damages, penalties, claims, actions, costs, charges, judgment and expenses (including reasonable attorneys’ fees, costs and disbursements) (collectively referred to as “Losses”), arising from (a) the use of, or any activity done, permitted or suffered in or about the Premises by Tenant, (b) any activity done, permitted or suffered by Tenant or Tenant’s agents, contractors, invitees or licensees in or about the Premises, (c) any act, neglect, fault, willful misconduct of Tenant or Tenant’s agents, or (d) from any breach or default in the terms of this Lease by Tenant or Tenant’s agents, except to the extent such claims arise out of or relate to the actions or omissions of Landlord. If any action or proceeding is brought 10 against Landlord by reason of any such claim, upon notice from Landlord, Tenant shall defend the same at Tenant’s expense. 11.2 Landlord Indemnification. Landlord shall indemnify, defend and hold Tenant and Tenant-related parties harmless against and from all Losses arising from any use of, or any activity done, permitted or suffered by Landlord or Landlord’s agents, contractors, invitees or licensees in or about the Premises. If any action or proceeding is brought against Tenant by reason of any such claim, upon notice from Tenant, Landlord shall defend the same at Landlord’s expense by counsel. 11.3 Survival/No Impairment. The obligations of Tenant and Landlord under this Article 11 shall survive any termination or expiration of this Lease. The foregoing indemnity obligations shall not relieve any insurance carrier of its obligations under any policies carried by either party, to the extent that such policies cover the peril or exposure that result in the claims that are subject to the foregoing indemnity. 12. INSURANCE. 12.1 Tenant’s Insurance. (a) Damage Liability. Tenant shall maintain in full force throughout the Term, commercial general liability insurance providing coverage on an occurrence form basis with limits of not less than Five Million Dollars ($5,000,000.00) each occurrence for bodily injury and property damage combined, covering bodily injury and property damage liability. Said insurance obligations may be satisfied by Tenant’s insurance policy or policies, Tenant’s self-insurance, or Tenant’s participation in a pooling program with applicable coverage, or any combination thereof. (b) Personal Property Insurance. Tenant shall maintain in full force and effect on the improvements located on the Premises and its personal property, furniture, furnishings, trade fixtures and equipment from time to time located in, on or upon the Premises in an amount not less than one hundred percent (100%) of their full replacement value from time to time during the Term, providing protection against all perils, included within the standard form of “all-risk” (i.e., “Special Cause of Loss”) fire and casualty insurance policy. Landlord shall have no interest in the insurance upon Tenant’s property or Alterations and will sign all documents reasonably necessary in connection with the settlement of any claims or loss by Tenant. Said insurance obligations may be satisfied by Tenant’s insurance policy or policies, Tenant’s self- insurance, or Tenant’s participation in a pooling program with applicable coverage, or any combination thereof. 12.2 Certificates of Insurance. Upon execution of this Lease by Tenant, and not less than thirty (30) days prior to expiration of any policy thereafter, Tenant shall furnish to Landlord a certificate of insurance reflecting that the insurance required by this Article is in force, accompanied by an endorsement(s) showing the required additional insureds satisfactory to Landlord in substance and form, or other reasonable evidence of compliance with this Article 12. 11 13. DAMAGE OR DESTRUCTION. 13.1 Repair Obligations. In the event of damage or destruction to the improvements on the Premises from any cause other than the negligence of Landlord, Tenant shall, at its sole cost and expense, whether or not any such casualty is covered by insurance, either promptly repair or rebuild the same so as to make said damaged improvements as nearly similar to in character and quality as the improvements existed immediately prior to such casualty. Alternatively, in the event of damage or destruction materially interferes with Tenant’s use and enjoyment of the Premises, Tenant my terminate this Lease by the giving of not less than thirty (30) days written notice to Landlord, and assigning to Landlord all insurance proceeds for the repair or replacement of the Premises. 13.2 Abatement of Rent. In the event of damage or destruction to the Premises not caused by the negligence of Tenant or any subtenant, the Rent payable by Tenant for the period required for the repair, remediation or restoration of such damage shall be abated in proportion to the degree to which Tenant’s use of the Premises is impaired, and such abatement shall be Tenant’s sole remedy for such impairment of use. All other obligations of Tenant hereunder shall be performed by Tenant. 14. CONDEMNATION. If the whole or if any material part of the Premises is taken or condemned for any public or quasi-public use under either state or federal law, by eminent domain or purchase in lieu thereof (a “Taking”), and (a) such Taking renders the Premises unsuitable, in Tenant’s reasonable opinion, for the purposes for which they were leased; or (b) the Premises cannot be repaired, restored or replaced at reasonable expense to an economically profitable unit, then Tenant may, at its option, terminate this Lease as of the date possession vests in the condemning party. If twenty-five percent (25%) or more of the Premises is taken and if the Premises remaining after such Taking would be untenantable (in Tenant’s reasonable opinion) for the conduct of Tenant’s business operations, Tenant shall have the right to terminate this Lease as of the date possession vests in the condemning party. The termination shall be effective as of the effective date of any order granting possession to, or vesting legal title in, the condemning authority. If this Lease is not terminated, Base Rent shall be appropriately adjusted to account for any reduction in the square footage of the Premises. Landlord shall be entitled to any and all compensation, damages, income, rent, awards or any interest thereon which may be paid or made in connection with any such Taking, and Tenant shall be entitled to receive a pro-rata portion of any award for the value of Tenant’s fixture, equipment and personal property (specifically excluding components of the Premises which under this Lease or by law are or at the expiration of the Term will become the property of Landlord, including, without limitation, fixtures and Alterations). 15. DEFAULT. 15.1 Events of Default. The occurrence of any of the following shall constitute a “Default” by Tenant: 12 (a) Tenant fails to make any payment of Rent when due, if payment in full is not received by Landlord within twenty five (25) days after written notice that it is past due. (b) Tenant fails to perform or comply with any provision of this Lease and does not fully cure such failure within ninety (90) days after notice to Tenant or, if such failure cannot be cured within such ninety (90) day period, Tenant fails within such period to commence, and thereafter diligently proceed with, all actions necessary to cure such failure as soon as reasonably possible. 15.2 Remedies. Upon the occurrence of any Default under this Lease, whether enumerated in Section 15.1 or not, Landlord shall have the option to pursue any remedy provided by law, including: (a) Terminate this Lease and Tenant’s right to possession of the Premises; (b) Employ the remedy described in California Civil Code § 1951.4 (Landlord may continue this Lease in effect after Tenant’s breach and abandonment and recover Rent as it becomes due, if Tenant has the right to sublet or assign, subject only to reasonable limitations); or (c) Notwithstanding Landlord’s exercise of the remedy described in California Civil Code § 1951.4 in respect of an event or events of Default, at such time thereafter as Landlord may elect in writing, to terminate this Lease and Tenant’s right to possession of the Premises and recover an award of damages as provided above. 15.3 No Waiver. The subsequent acceptance of Rent hereunder by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease, other than the failure of Tenant to pay the particular Rent so accepted, regardless of Landlord’s knowledge of such preceding breach at the time of acceptance of such Rent. No waiver by Landlord of any breach hereof shall be effective unless such waiver is in writing and signed by Landlord. 15.4 Landlord’s Breach. If Landlord fails to perform any obligations, covenants, agreements or provisions contained herein to be observed or performed by Landlord for a period of twenty-five (25) days after written notice thereof from Tenant, the Landlord shall be deemed to be in default hereunder, and Tenant may take whatever action, at law or at equity, may appear necessary or desirable to enforce the observance or performance of such obligations, covenants, agreements or provisions including termination of this Lease. 16. SURRENDER OF PREMISES. At the termination of this Lease or Tenant’s right of possession, Tenant shall remove Tenant’s property including any furniture, fixtures, equipment installed by or for the benefit of Tenant from the Premises, and quit and surrender the Premises to Landlord in substantially the same condition as of the Commencement Date of this Lease Term, ordinary wear and tear and damage which Landlord is obligated to repair hereunder excepted. Landlord may, by notice to Tenant not less than ninety (90) nor more than One Hundred Eighty (180) days prior to the Expiration Date require Tenant, at Tenant’s expense, remove any Alterations and repair any 13 damage caused by such removal. If Tenant fails to remove any of Tenant’s property, or to restore the Premises to the required condition, Landlord, at Tenant’s sole cost and expense, shall be entitled (but not obligated) to remove and store Tenant’s property and/or perform such restoration of the Premises. Landlord shall not be responsible for the value, preservation or safekeeping of Tenant’s property. Tenant shall pay Landlord, upon demand, the expenses and storage charges incurred. If Tenant fails to remove Tenant’s property from the Premises or storage, within sixty (60) days after notice, Landlord may deem all or any part of Tenant’s property to be abandoned and, at Landlord’s option, title to Tenant’s property shall vest in Landlord or Landlord may dispose of Tenant’s property in any manner Landlord deems appropriate. 17. HOLDING OVER. If Tenant fails to surrender all or any part of the Premises at the termination of this Lease, occupancy of the Premises after termination shall be that of a month to month tenancy. Tenant’s occupancy shall be subject to all the terms and provisions of this Lease and Tenant shall pay an amount (on a pro-rata per month basis) equal to the amount of the Base Rent due for the period immediately preceding the holdover. 18. NOTICE. All notices shall be in writing and delivered by hand or sent by registered, express, or certified mail, with return receipt requested or with delivery confirmation requested from the U.S. postal service, or sent by overnight or same day courier service at the party’s respective Notice Address(es) set forth in the Basic Lease Information (“Notice Address”). Each notice shall be deemed to have been received on the earlier to occur of actual delivery or the date on which delivery is refused, or, if Tenant has vacated the Premises or any other Notice Address of Tenant without providing a new Notice Address, three (3) days after notice is deposited in the U.S. mail or with a courier service in the manner described above. Either party may, at any time, change its Notice Address (other than to a post office box address) by giving the other party written notice of the new address. 19. EARLY TERMINATION BY TENANT. 19.1 Debt Limitation. In the event the Palo Alto City Council does not appropriate funds for payment of the Rent due under this Lease in any year, this Lease shall terminate upon 120-day written notice thereof. 19.2 Gann Limit. Tenant may terminate this Lease in any fiscal year in which Tenant is not authorized by the Palo Alto Electorate to exceed the expenditure limitation imposed by the California Constitution in any other State or Federal legislative act, commencing with the fiscal year 2020-2021. In that event, Tenant may terminate this Lease upon the giving of six (6) months written notice which must be given within thirty (30) days of an unsuccessful election seeking such authorization. 19.3 Restriction on Taxing Power. If State or Federal law is enacted, an initiative measure passed or a court decision rendered which reduces the City’s general fund revenue or restricts the City’s authority to collect or levy general fund taxes which the City has the right to 14 collect or levy as of the Commencement Date of this Lease, the City may terminate this Lease in whole or in part as hereinafter set forth, by giving six (6) months prior written notice to Landlord after such law, measure or decision becomes effective; provided, however, there shall be no right of termination unless the effect of such law, measure or decision is to reduce the City’s general fund revenue or taxing authority by one million, five hundred thousand dollars ($1,500,000.00) from the previous fiscal year. 20. RESERVED. 21. Reserved. 22. MISCELLANEOUS. 22.1 Governing Law. This Lease shall be interpreted and enforced in accordance with the Laws of the State of California and Landlord and Tenant hereby irrevocably consent to the jurisdiction and proper venue of such state. 22.2 Severability. If any section, term or provision of this Lease is held invalid by a court of competent jurisdiction, all other sections, terms or severable provisions of this Lease shall not be affected thereby, but shall remain in full force and effect. 22.3 Attorneys’ Fees. In the event of an action, suit, arbitration or proceeding brought by Landlord or Tenant to enforce any of the other’s covenants and agreements in this Lease, the prevailing party shall be entitled to recover from the non-prevailing party any costs, expenses (including out of pocket costs and expenses) and reasonable attorneys’ fees incurred in connection with such action, suit or proceeding. 22.4 Force Majeure. Whenever a period of time is prescribed for the taking of an action by Landlord or Tenant (other than the payment of Rent), the period of time for the performance of such action shall be extended by the number of days that the performance is actually delayed due to strikes, acts of God, shortages of labor or materials, war, terrorist acts, pandemics, civil disturbances, extreme weather and other causes beyond the reasonable control of the performing party (“Force Majeure”). 22.5 Brokers. Landlord and Tenant each represents and warrants to the other that neither it nor its officers or agents nor anyone acting on its behalf has dealt with any real estate broker in the negotiating or making of this Lease. Each party agrees to indemnify, defend and hold harmless the other from any claim or claims, and costs and expenses, including attorneys’ fees, incurred by the indemnified party in conjunction with any such claim or claims of any broker or brokers to a commission in connection with this Lease as a result of the actions of the indemnifying party. 22.6 Access by Landlord. In addition to access provided by this Lease, Landlord shall be allowed access to the Premises at all reasonable times throughout the term of this Lease, for any reasonable purpose upon prior written notice to Tenant. Landlord shall give Tenant a minimum of one (1) business day’s prior notice of an intention to enter the Premises, unless the entry is reasonably required on an emergency basis for safety, environmental, operations or security purposes. 15 22.7 Waiver of Right to Jury Trial. Landlord and Tenant agree to make good faith efforts to resolve any dispute. If dispute cannot be resolved, Landlord and Tenant may assert their respective rights to a trial by jury of any contract or tort claim, counter claim, cross-complaint, or cause of action in any action, proceeding, or hearing brought by either party against the other on any matter arising out of or in any way connected with this Lease, the relationship of Landlord and Tenant, or Tenant’s use or occupancy of the Premises, including without limitation any claim of injury or damage or the enforcement of any remedy under any current or future law, statute, regulation, code, or ordinance. 22.8 Article and Section Titles. The Article and Section titles used herein are not to be consider a substantive part of this Lease, but merely descriptive aids to identify the paragraph to which they referred. Use of the masculine gender includes the feminine and neuter, and vice versa. 22.9 Quiet Possession. Landlord covenants and agrees with Tenant that, upon Tenant’s payment of Rent and observing and performing all of the terms, covenants, conditions, provisions and agreements of this Lease on Tenant’s part to be observed or performed, Tenant shall have the quiet possession of the Premises throughout the Term. 22.10 Asbestos Notification for Commercial Property Constructed Before 1979. Tenant acknowledges that Landlord has advised Tenant that, because of their age, certain improvements may contain asbestos-containing materials (“ACMs”). If Tenant undertakes any Alterations as may be permitted herein, Tenant shall undertake the Alterations in a manner that avoids disturbing ACMs present in the Premises. If ACMs are likely to be disturbed in the course of such work, Tenant shall encapsulate or remove the ACMs in accordance with an approved asbestos-removal plan and otherwise in accordance with all applicable Environmental Laws, including giving all notices required by California Health & Safety Code Sections 25915-25919.7. In the event that money becomes available from the State of California for the cleanup or abatement of asbestos, Landlord shall use good faith efforts to obtain a share of such funds to be applied to any asbestos remediation work at the Premises. Any such money thus obtained by Landlord shall be assigned by Landlord to Tenant for the purpose of asbestos abatement. 22.11 Lead Warning Statement. Tenant acknowledges that Landlord has advised Tenant that buildings built before 1978 may contain lead-based paints (“LBP”). Lead from paint, paint chips and dust can pose health hazards if not managed properly. 22.12 Certified Access Specialist Disclosure. In accordance with Civil Code Section 1938, Landlord hereby discloses that the Premises have not undergone inspection by a Certified Access Specialist for purposes of determining whether the property has or does not meet all applicable construction related accessibility standards pursuant to Civil Code Section 55.53. A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the 16 CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the Premises. The forgoing notwithstanding, the parties agree that Tenant shall be solely responsible for the payment of all fees for the CASp inspection and for any repairs it deems necessary to correct violations of construction-related accessibility standards within the Premises as a result of the CASp inspection. 22.13 Time of the Essence. Time is of the essence of this Lease and each and all of its provisions. 22.14 Entire Agreement. This Lease contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in this Lease, and no prior agreements or understandings pertaining to any such matter shall be effective for any purpose. No provision of this Lease may be amended or added except by an agreement in writing signed by the parties hereto or their respective successors-in-interest. 22.15 Counterparts. This Lease may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. 17 EXHIBIT A PROPERTY OUTLINED IN RED FOPAL Tennis Courts Soccer/Football/Rugby Field Running Track FOPAL P K7 K6 K5 K4 K3 K2 1J1K J2 J3 J4 J5 J6 J7 L1 H6 H5FH F V U M4 M2 D1 D2A2D3 D4 D5 D6 D7 A3 A4 A5 A6 A7 B2 B3 B4 B5 C5 C4 C3 C2 B6 B7 C6 C7 H2 H1 3H 4H L3 L4 6L5L MIDDLEFIELD ROAD Theatre Pavilion G4 G6 GymAGymB M7 2 M1 M3 1J J3 J4 J5 J2I T1 T2* S Cubberley Community Center 4000 Middlefield Road, Palo Alto, CA 94303 Tel. 650.329.2418 Fax 650.856.8756 www.cityofpaloalto.org cubberley@cityofpaloalto.org Map Legend Office Hours: Monday - Friday 8:30am to 5:30pm Accessible Parking Restrooms School JMZ E G7 Softball 3 Softball 4 Softball 2 Softball 1 Soccer 1Soccer 2 North G8 ( EXHIBIT B PREMISES PAUSD space used by City Indoor area*  (including addl  spaces)65,046            Room G5 1,656              Room G8 490                 Gym A 5,500              Gym B 7,200              Theater only 7,800              N + Pavilion 17,500            S 5,700              Auditorium (JMZ) 13,200            Maintenance* 2,000              Boiler Room**‐                  FOPAL* (near track) 4,000              Total City Use 65,046            58.81% *Estimated sq ft, confirmation pending  **Boiler room included in Common Areas EXHIBIT C SPACE USED BY CITY (IN SQ. FT.) PAUSD space used by PAUSD Indoor area 45,554                 A 5,300                   B 5,300                   G4, G6, G7 13,354                 I (two levels) 13,000                 M2, M3, M4 5,000                   Q 3,600                   Total PAUSD Use 45,554                 41.19% EXHIBIT D SPACE USED BY PAUSD (IN SQ. FT.) CITY OF PALO ALTO OFFICE OF THE CITY ATTORNEY June 23, 2020 The Honorable City Council Palo Alto, California Adoption of a Resolution Continuing the Proclamation of Local Emergency due to COVID-19 Recommendation: Adopt the attached Resolution continuing the Proclamation of Local Emergency due to COVID- 19 first issued by the City Manager, acting as the Director of Emergency Services, on March 12, 2020, and ratified by the Council on March 16, 2020. Background: On March 12, 2020 the City Manager, acting as the Director of Emergency Services, issued a Proclamation of Local Emergency (Attachment A) regarding the presence and community spread of novel coronavirus, or COVID-19, in Santa Clara County and our region. The Council ratified the Proclamation on March 16, 2020. The City Council continued the Proclamation of Emergency on May 11, 2020. The Proclamation allows the City to exercise extraordinary police powers, should these be needed; provides immunity for emergency actions; authorizes issuance of certain necessary orders and regulations; activates pre-established emergency processes; and is a prerequisite for requesting state or federal assistance related to the emergency, should such assistance become available. Under state and local law, Council must review the need for continuing the emergency at least once every 60 days and formally terminate the emergency when conditions warrant. At this time, the State of California and Santa Clara County remain under public health orders requiring social distancing, wearing of face coverings, and regulating business and other activities. State and County officials have advised that regulations designed to limit the spread of COVID-19 will be revised as conditions evolve and that COVID-19 regulations, in some form, will be required for many months. The City has been engaged in a comprehensive effort to respond to the COVID-19 emergency and associated economic contraction, including multiple initiatives to support community health and safety and assist local distressed business. To take one example, in order to support resumption of business and economic activity while complying with health orders, the City has relied on its emergency powers to temporarily close certain streets to vehicular traffic and waive Code requirements that would otherwise restrict outdoor dining and retail activity. We Page 2 anticipate further emergency actions will be needed as the pandemic and economic fallout continue to evolve. Discussion: State and County health orders restricting activities of businesses and the public remain in place at this time. While revisions are expected, health officials have advised that some restrictions and precautions are likely to remain in place for some time, and that there will be an ongoing need for significant public health activities including testing, tracing, isolation, and treatment. The staff recommendation to continue the local proclamation of emergency reflects the continued volatility of the current public health emergency and uncertainty of issues to come. At this time, the City uses the state of emergency to address several continuing special needs for support to the community. This includes a moratorium on residential evictions and the requirement of face coverings away from home. The authority also allows for operational changes necessary through this timeframe including City staff reassignments and deployments as disaster service workers. To support the recovery of business and economic activity, the City references the Local Emergency in temporary business support programs such as street closures and the waiver of Code and Conditional Use Permit requirements that would otherwise restrict outdoor dining and retail activity. These programs, services and activities, and others like them, will be needed for some time. The continued Proclamation allows us to change and modify services in response to these continuing community needs. Throughout the extended emergency period, staff will exercise great restraint in the application of restrictions or actions that impact the public. For all the reasons stated, staff recommends that the Council adopt the attached Resolution continuing the Proclamation of Local Emergency. Council can terminate the Local Emergency at any time when the need is no longer present. Staff will continue to regularly update Council on the COVID-19 situation and the City’s response. If not terminated earlier, staff will bring an item to Council in approximately 60 days to revisit the need for continuing the Local Emergency. Environmental Review: This action is exempt from environmental review by statute. See CEQA Guidelines Section 15269, Emergency Projects Undertaken for Specific Actions Necessary to Prevent or Mitigate an Emergency. Attachments: Proclamation of Local Emergency, issued March 12, 2020 Resolution Continuing the Proclamation of Local Emergency Page 3 ATTACHMENTS: • Attachment A: Proclamation of Local Emergency Covid 19 (PDF) • Attachment B: Resolution Continuing the Proclamation of Local Emergency (PDF) Department Head: Molly Stump, City Attorney Page 4 Page 1 of 2 City of Palo Alto Proclamation of Local Emergency WHEREAS, Sections 2.12.050 of the City of Palo Alto Municipal Code empowers the Director of Emergency Services (City Manager) or the Assistant Director of Emergency Services (Office of Emergency Services Chief) to proclaim the existence or threatened existence of a local emergency when said City is affected or likely to be affected by a public calamity and the City Council is not in session; and WHEREAS, the Director of Emergency Services (City Manager) of the City of Palo Alto does hereby find that conditions of extreme peril to the safety of persons and property have arisen within the City, caused by a novel coronavirus, designated “COVID-19,” which was detected in Wuhan City, Hubei Province, China, in December 2019, and has spread globally to more than 118 countries, areas or territories; and WHEREAS, the World Health Organization has designated COVID-19 a Global Pandemic; and WHEREAS, COVID-19 has infected more than 125,288 people and caused more than 4,614 deaths worldwide, including a total of 177 positive cases and three deaths in California, 48 confirmed infections and 1 death in Santa Clara County; and WHEREAS, many cases in California and the Bay Area have been contracted through community transmission; and WHEREAS, the Centers for Disease Control and Prevention (CDC) and the Santa Clara County Public Health Department have urged local government, employers, organizations and individuals to take preventative actions to slow the spread of the virus and mitigate its effects, including observing good personal hygiene practices, social distancing, cancelling unnecessary travel and large gatherings, and working from home where possible; and WHEREAS, the City of Palo Alto has implemented daily communication to inform residents and connect them with County Public Health and the CDC guidance; urged residents to practice good personal hygiene and social distancing; cancelled or postponed large events; encouraged remote work where possible; and modified non-essential services to protect employees and the public, while maintaining City services; and WHEREAS, these conditions are, or are likely to be, beyond the control of the services, personnel, equipment, and facilities of the City; and DocuSign Envelope ID: E3A02FD5-00E1-4DBD-8E86-E0E1BC4BF68E Page 2 of 2 WHEREAS, the City Council of the City of Palo Alto is not in session and cannot immediately be called into session; NOW, THEREFORE, IT IS HEREBY PROCLAIMED that a local emergency now exists throughout the City of Palo Alto; and IT IS FURTHER PROCLAIMED AND ORDERED that during the existence of said local emergency the powers, functions, and duties of the emergency organization of the City shall be those prescribed by state law and by ordinances and resolutions of this City; and that this emergency proclamation shall expire in 7 days after issuance unless confirmed and ratified by the governing body of the City of Palo Alto. Dated: ________________ By: _____________________________________ Edward Shikada City Manager Director of Emergency Services DocuSign Envelope ID: E3A02FD5-00E1-4DBD-8E86-E0E1BC4BF68E 3/12/2020 Certificate Of Completion Envelope Id: E3A02FD500E14DBD8E86E0E1BC4BF68E Status: Completed Subject: Please DocuSign: Emergency Proc covid 19.pdf Source Envelope: Document Pages: 2 Signatures: 1 Envelope Originator: Certificate Pages: 2 Initials: 0 Judy Ng AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Judy.Ng@CityofPaloAlto.org IP Address: 199.33.32.254 Record Tracking Status: Original 3/12/2020 2:33:45 PM Holder: Judy Ng Judy.Ng@CityofPaloAlto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Ed Shikada Ed.Shikada@cityofpaloalto.org Ed Shikada, City Manager City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 3/12/2020 2:36:02 PM Viewed: 3/12/2020 2:37:31 PM Signed: 3/12/2020 2:37:45 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Meghan Horrigan-Taylor Meghan.Horrigan-Taylor@CityofPaloAlto.org Chief Communications Officer City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 3/12/2020 2:37:46 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Kenneth Dueker Kenneth.Dueker@CityofPaloAlto.org Security Level: Email, Account Authentication (None) Sent: 3/12/2020 2:37:47 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Carbon Copy Events Status Timestamp Molly Stump Molly.Stump@CityofPaloAlto.org City Attorney City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 3/12/2020 2:37:48 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 3/12/2020 2:37:48 PM Certified Delivered Security Checked 3/12/2020 2:37:48 PM Signing Complete Security Checked 3/12/2020 2:37:48 PM Completed Security Checked 3/12/2020 2:37:48 PM Payment Events Status Timestamps NOT YET APPROVED 200618 tlh 0140207 Resolution No. ________ A Resolution of the City of Palo Alto Re-Confirming and Continuing the Proclamation of Existence of a Local Emergency Due to COVID-19 R E C I T A L S A. Sections 2.12.050 of Chapter 2.12 (Emergency Organization and Functions) of Title 2 (Administrative Code) of the Palo Alto Municipal Code empowers the Director of the Emergency Services (City Manager or Designee) to proclaim the existence or threatened existence of a local emergency if the Council of the City of Palo Alto (“City”) is not in session, and requires that the City Council shall take action to ratify the proclamation within seven (7) days thereafter; and B. Under California Government Code Section 8680.9, a local emergency is a condition of extreme peril to persons or property proclaimed as such by the governing body of the local agency affected by a natural or manmade disaster; and C. The purpose of a local emergency proclamation is to provide extraordinary police powers, immunity for emergency actions, authorize issuance of orders and regulations, and activate pre-established emergency provisions; and D. A local emergency proclamation is a prerequisite for requesting state or federal assistance; and E. Conditions of extreme peril to the safety of persons and property have arisen within the City, based on the following: 1. A novel coronavirus, designated “COVID-19,” was detected in Wuhan City, Hubei Province, China, in December 2019, and has spread globally. The World Health Organization has designated COVID-19 a Global Pandemic. 2. COVID-19 is highly transmissible from person to person and can cause serious illness and death. It has infected millions of people and caused hundreds of thousands of deaths worldwide, including many confirmed cases and deaths in California and in Santa Clara County. 3. The Centers for Disease Control and Prevention (CDC), State of California and Santa Clara County Public Health Department have issued numerous orders to limit the spread of COVID-19 including advising or requiring social distancing and the wearing of face coverings, and limiting and regulating business and other activities. 4. The efforts required to prepare for, respond to, mitigate, and recover from the emergency conditions caused by COVID-19 have imposed and will continue to impose extraordinary requirements and expenses on the City, which are or are NOT YET APPROVED 200618 tlh 0140207 likely to be beyond the control of the services, personnel, equipment and facilities of the City. F. The City Council does hereby find that the above described conditions of extreme peril did warrant and necessitate, and continue to warrant and necessitate, the proclamation of the existence of a local emergency in the City; and G. California Government Code, Title 2, Division 1, Chapter 7.5 - California Disaster Assistance Act (CDAA) allows that with the proclamation of a local emergency the City may seek financial assistance and may request reimbursement of the significant expenses incurred during response, if approved by the Director of the California Office of Emergency Services or Concurrence or Governor’s Proclamation; and H. On March 12, 2020, the Director of Emergency Services issued a proclamation, attached hereto, declaring the existence of a local emergency within the City, which was ratified by the City Council on March 16, 2020, and continued on May 11, 2020; and I. The associated emergency conditions are on-going and the emergency should not be terminated at this time; NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows: SECTION 1. The Proclamation of Existence of a Local Emergency, attached hereto, as initially issued by the Director of Emergency Services on March 12, 2020, and thereafter ratified, confirmed and continued, is hereby re-confirmed and continued. SECTION 2. The City Council has reviewed the need for continuing the declaration of local emergency and finds based on substantial evidence that the public interest and necessity require the continuance of the proclamation of local emergency related to COVID-19. SECTION 3. Said local emergency shall be deemed to continue to exist until terminated by the City Council of the City of Palo Alto. SECTION 4. The Director of the Office of Emergency Services is hereby directed to report to the City Council within sixty (60) days on the need for further continuing the local emergency. / / / / / / / / NOT YET APPROVED 200618 tlh 0140207 SECTION 5. The Council finds that the adoption of this resolution is statutorily exempt from environmental review under the California Environmental Quality Act Guidelines Section 15269, Emergency Projects Undertaken for Specific Actions Necessary to Prevent or Mitigate an Emergency. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ _____________________________ City Attorney City Manager _____________________________ Director of Emergency Operations _____________________________ Director of Administrative Services City of Palo Alto (ID # 11273) City Council Staff Report Report Type: Action Items Meeting Date: 6/23/2020 City of Palo Alto Page 1 Council Priority: Grade Separations, Transportation and Traffic Summary Title: AECOM Contract Amendment-Rail and Adoption of Updated Rail Workplan Title: Approval of Amendment Number 2 to Contract Number C18171057 With AECOM for Continued and Expanded Services for the Connecting Palo Alto Rail Grade Separation (PL-17001) Effort and to Increase Compensation by $309,872 for a Total Not-to-Exceed Amount of $2,794,658; and Approval of Updated Rail Workplan From: City Manager Lead Department: Transportation Department Recommendation Staff recommends that the City Council approve and authorize the City Manager or his designee to execute Amendment No. 2 to Contract C18171057 with AECOM for continued and expanded services for the Connecting Palo Alto Rail Grade Separation (PL-17001) effort and to increase maximum compensation by $309,872 for a total not-to-exceed amount of $2,794,658; and approve the updated rail workplan. Background The City Council approved a contract with AECOM to serve as the primary consultant for the Connecting Palo Alto Rail Grade Separation Project on April 16, 2018. The approved contract (C18171057), for $1,278,660, is shown in CMR #9100. City Council approved Amendment No. 1 to the contract on June 24, 2019 (CMR #10463). Amendment No. 1 expanded the scope of services to include additional work requested by the City Council in relation to the Connecting Palo Alto effort at an increased maximum compensation of $1,206,126. On September 9, 2019, the City Council provided additional direction to staff and changed the responsibilities of the former Community Advisory Panel and reconstituted the advisory group as the Expanded Community Advisory Panel (XCAP) with additional responsibilities and City of Palo Alto Page 2 members. In making that change, the City Council also gave the XCAP a deadline of April 30, 2020 to complete their work. Though the XCAP has worked diligently, they will be unable to meet their April 30, 2020 deadline due to a variety of circumstances including interruptions in their meeting schedule as a result of the COVID-19 emergency. On January 21, 2020, the City Council heard an update from the XCAP where the XCAP presented new ideas for the City Council to consider adding to the list of seven (7) current alternatives under consideration. The new ideas came from the community and were reviewed by the XCAP and some volunteer retired civil engineers before coming to the City Council. At this meeting, the City Council directed staff to move forward immediately with exploring two of the three new idea concepts presented by the XCAP. Following that City Council action, staff and AECOM have been diligently working with the new idea proposers and the XCAP Technical Working Subgroup to further refine the ideas and get them to a level comparable to the existing seven (7) alternatives. In addition to the extended schedule, the proposed contract amendment primarily reflects additional work related to the new ideas. In a recent report to the City Council on March 23, 2020 the City Council deferred discussion of a business tax and also requested that staff return to City Council with a Railroad Grade Separation workplan that extends the target date for selection of preferred alternatives in light of delays and challenges related to COVID-19. Staff shares that workplan in the staff report below which outlines the work needed by AECOM to fulfill City Council’s requests from January 2020 as well as the work going forward to achieve selection of preferred alternatives. The proposed contract amendment is attached to this report as Attachment A. Discussion On January 21, 2020, the City Council authorized the review of two additional new ideas: one idea for the Churchill underpass grade separation and the other idea modifying each of the grade separations at Meadow and Charleston. These new ideas require additional work to develop the fact sheets, renderings, and videos to better depict the preliminary design and show work in three dimensions. The three-dimensional renderings and videos will help provide better perspective of the proposed improvements for community engagement and greater reach to the public. In addition, staff is working to support the XCAP with requested information in a timely manner for the review of various alternatives. Due to COVID 19 conditions, there have been delays to XCAP meetings. This was also shared by the XCAP during update to City Council on June 8, 2020. These delays have extended the schedule for public input and deliberation of alternatives to August 2020. The proposed recommendations for the grade separation project are anticipated to be completed by the end of August 2020. The additional work to evaluate the proposed new alternatives resulted in the need to have additional consultant services, estimated at $309,872. Staff requested that AECOM provide the City of Palo Alto Page 3 scope for additional work to assist with preparation of renderings videos, traffic evaluation of the new alternatives, and project management. The specific elements requiring contract amendment are outlined by task as follows: Task 1: Project Management – the time extension of 10 months (March 2020-December 2020) to the project schedule will extend general project management tasks required for managing all aspects of the planning effort (administration, coordination, and quality control). This task also accounts for meetings with outside agencies relevant to the project (e.g., Caltrain). Task 4. Community Engagement – This task incudes preparation of 3-D renderings/photo simulations and 360-degree color 3-D animated videos for all the new ideas (as described in Task 6). Task 6. Identify Recommended Alternatives – this is where the analysis on the two (2) new ideas is included. The main aspects of the Task 6 amendment include: • Civil engineering for new ideas at three locations (Churchill Partial Underpass and Meadow/Charleston Underpass). • Preliminary civil engineering conducted to help the XCAP and the City Council review the proposed new ideas (4 new ideas were studied for the XCAP; 3 of those came forward to the City Council; 2 were further pushed forward by City Council). • Traffic engineering at Churchill, Meadow and Charleston: o New idea that included a roundabout at Alma and Embarcadero o New idea that included a partial underpass at Churchill o New idea that included a partial underpass and bike/ped changes at Meadow/Charleston o More traffic analysis on two existing alternatives: Churchill viaduct and Meadow/Charleston viaduct (per XCAP request) o Draft and final traffic memorandums • Preliminary construction cost estimates for new ideas Updated Rail Workplan With the schedule changes due to COVID-19, staff proposes a workplan that will allow the XCAP to finish their work and study the existing seven (7) alternatives, allow the XCAP to review and comment on the analysis on the new ideas, and allow staff the time to have broader community conversations on all nine (9) alternatives. This amount of work with report outs to the City Council will well equip the City Council with needed information to decide on preferred alternatives this year. Staff proposes the workplan timeline as follows: a. Engage the XCAP through the months of July 2020. They will receive all technical information in this timeframe and will be able to review it all if they continue their almost weekly meeting schedule. City of Palo Alto Page 4 b. Staff will coordinate additional community engagement opportunities in July/August 2020. c. All analytical work should be completed by July which will help with the XCAP meetings and community conversations. d. XCAP will complete their deliberation on alternatives by mid-September and prepare the final report. XCAP is anticipated to update Council in August and present the final report in early October. e. Final project reporting and the Project Study Report (PSR) will be completed by AECOM consultant by December based on Council’s direction. Timeline, Resource Impact, Policy Implications Funding required for this contract amendment is available in Railroad Grade Separation and Safety Improvement Capital Improvement Project PL-17001 in FY 2020 and FY 2021, subject to City Council approval of the FY 2021 – 2025 Capital Improvement Plan on June 22, 2020. Amendment No. 2 increases the contract amount from $2,484,786 to $2,794,658, a net increase of $309,872 for services outlined above. Any future need for an annual contract budget adjustment for a subsequent contract year will be addressed in the development of the FY 2022 budget and recommended to Council through the annual budget development process. City staff was able to get a 5% reduction in the costs for the proposed amendment from the consultant. The consultant was able to achieve this reduction through a combination of measures including a reduction to hourly rates charged for certain personnel and reduction/elimination of the sub-consultant markup. Grade separations along the Caltrain corridor are a City priority, as evidenced by Comprehensive Plan Policy T-3.15 “Pursue grade separation of rail crossings along the rail corridor as a City priority.” The proposed contract would advance this priority and respond to Program T3.15.1: “Undertake studies and outreach necessary to advance grade separation of Caltrain to become a “shovel ready” project and strongly advocate for adequate State, regional, and federal funding for design and construction of railroad grade separations.” Environmental Review: The AECOM consultant contract amendment described in this report does not constitute a project under the California Environmental Quality Act and is therefore not subject to environmental review. Attachments: • Attachment A: AECOM Rail Program Management Services Contract Amendment No 2 Attachments: • Attachment A: Amendment #2 C18171057 AECOM AMENDMENT NO. 2 TO CONTRACT NO. C18171057 BETWEEN THE CITY OF PALO ALTO AND AECOM TECHNICAL SERVICES, INC. This Amendment No. 2 (this “Amendment”) to Contract No. C18171057 (the “Contract” as defined below) is entered into as of June 23, 2020, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and AECOM TECHNICAL SERVICES, INC., a California corporation, located at 300 Lakeside Drive, Suite 400, Oakland, California 94612 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties for a three-year team for the provision of providing program management, enhanced community engagement services, grade separation planning and alternatives analysis, and technical assistance on rail engineering and design, all related to CITY’s Connecting Palo Alto Railroad Grade Separation Project. B. The Parties now wish to amend the Contract in order to increase the maximum compensation by $309,872.00.00, from $2,484,786.00 to $2,794,658.00, for the provision of revised and augmented Basic Services as described in Exhibit “A-2”, Amendment No. 2, Supplemental Scope of Services, attached hereto and incorporated herein. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a. Contract. The term “Contract” shall mean Contract No. C18171057 between CONSULTANT and CITY, dated April 23, 2018, as amended by: Amendment No.1, dated June 24, 2019 b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 4. “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to read as follows: “SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” as amended by Exhibits “A-1” and “A-2” (referred to collectively as Exhibit “A” or the “Basic Services”), and reimbursable expenses, shall not exceed Two Million Six Hundred Fourteen Thousand Six Hundred Fifty-Eight Dollars ($2,614,658.00). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event Additional Services are authorized, the total compensation for Basic Services, Additional Services, and reimbursable expenses shall not exceed Two Million Seven Hundred Ninety-Four Thousand Six Hundred Fifty-Eight Dollars ($2,794,658.00). The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”.” SECTION 3. Exhibit “A-2” to this Amendment (attached hereto and incorporated herein) shall amend, but not replace, Exhibit “A” attached to the original Contract and Exhibit “A-1” attached to Amendment No. 1 to the Contract. References to “Exhibit A” in the Contract shall mean Exhibits “A”, “A-1” and “A-2” read together. To the extent the provisions of Exhibit “A-2” directly conflict with original Exhibit “A” or Exhibit “A-1”, the provisions of Exhibit “A-2” will control. SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “A-2” entitled “AMENDMENT NO. 2, SUPPLEMENTAL SCOPE OF SERVICES”, ADDED. b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE”, AMENDED, REPLACES PREVIOUS. c. Exhibit “C” entitled “COMPENSATION”, AMENDED, REPLACES PREVIOUS. d. Exhibit “C-3” entitled “HOURLY RATE SCHEDULE”, AMENDED, REPLACES PREVIOUS. SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 6. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE) SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO City Manager APPROVED AS TO FORM: City Attorney or designee AECOM TECHNICAL SERVICES, INC. By: Name: Title: By: Name: Title: Attachments: EXHIBIT “A-2”: AMENDMENT NO. 2, SUPPLEMENTAL SCOPE OF SERVICES, ADDED EXHIBIT “B”: SCHEDULE OF PERFORMANCE, AMENDED EXHIBIT “C”: COMPENSATION, AMENDED EXHIBIT “C-3”: HOURLY RATE SCHEDULE, AMENDED Authorized Signatory R. Martin Czarnecki Etty Mercurio Vice President Vers.: Aug. 5, 2019 Page 5 of 20 EXHIBIT “A-2” AMENDMENT NO. 2 SUPPLEMENTAL SCOPE OF SERVICES This Exhibit “A-2” Supplemental Scope of Services amends Exhibit “A” Scope of Services, as previously amended by Exhibit “A-1”, and should be read together therewith. To the extent the provisions of Exhibit “A-2” directly conflict with original Exhibit “A” or Exhibit “A-1”, the provisions of Exhibit “A-2” will control. SCOPE OF WORK CONSULTANT will manage the Project, which will include required technical analyses of alternatives and a community and stakeholder engagement process to identify and develop locally-preferred alternatives for modifications to the existing at-grade crossings in Palo Alto at Churchill Avenue, Meadow Drive, and Charleston Road. CONSULTANT will coordinate and manage the project in conjunction with CITY’s staff. The goal is to conduct the necessary analysis and community engagement to identify locally preferred alternatives by August 2020, so environmental analysis can begin in Fall 2020. If a locally preferred alternative is not selected by August 2020, then an additional supplemental services request may be needed. The tasks anticipated in this supplemental scope of services with descriptions of supplemental services for each task and associated deliverables are shown below. Task 1: Project Management Task 4: Community Engagement Task 6: Identify Recommended Alternatives Task 1. Project Management Task 1.1 – Project Management and Administration For the additional 10 months of the Project (March 2020-December 2020), CONSULTANT will continue to provide project management for each task for the duration of the Project. Management activities will consist of administration, coordination, and quality control, as follows: a. Prepare a scope, budget, and updated project schedule. b. Continue to supervise, coordinate, and monitor activities and product development for conformance with the scope of services and CITY standards. c. Prepare eight (8) additional monthly invoices and progress reports. Task 1.2 – Performance and Quality Monitoring CONSULTANT will continue to use a project specific Quality Assurance Plan for technical reviews and detailed checking for work products including the work produced by CONSULTANT’s subconsultants. The CONSULTANT will continue to make sure that all work performed on the Project is checked and that all deliverables undergo a quality review before submittal to CITY. Vers.: Aug. 5, 2019 Page 6 of 20 Task 1.3 – Monthly Invoicing, Progress Reports and Schedule CONSULTANT will prepare and update the project schedule based on the supplemental work and will submit it to CITY staff for review and approval. Task 1 Supplemental Deliverables: a. Updated baseline project schedule b. Monthly update of progress against baseline schedule c. Eight (8) additional monthly invoices with progress report Task 4. Community Engagement Task 4.1 New Ideas Animations and Renderings City Council directed that new ideas identified by the XCAP be studied further. CONSULTANT will prepare 3D renderings/photo simulations and 360-desgree color 3D animated videos of approximately 5 minutes for up to three (3) new ideas/alternatives as identified in Task 6.2. Task 4 Supplemental Deliverables: a. Presentation materials including exhibit boards and PowerPoint presentations for three (3) Town Halls. b. Detailed color 3D graphic renderings/photo simulations for up to three (3) new ideas. c. 3D animation for up to three (3) new ideas Task 6. Identify Recommended Alternatives Task 6.1 – Traffic Engineering Churchill and Meadow/Charleston Alternatives CONSULTANT will analyze the traffic implications for proposed grade separation alternatives and new ideas as described below. CONSULTANT will provide its findings and recommendations to CITY in a draft traffic memorandum. CONSULTANT will respond to comments from City Staff and XCAP committee as applicable and provide a final memo report. Churchill Viaduct: Under this alternative, a viaduct will be constructed via an elevated structure at the Churchill crossing and Churchill will continue to provide east-west connection for pedestrians, bicycles and vehicles. CONSULTANT will quantify the improvements in delay and level of service at the Alma/Churchill intersection with the proposed viaduct. Existing AM and PM peak hour traffic counts and future volumes for the Alma Street/Churchill Avenue intersection will be obtained from the 2018 counts and 2030 forecasts presented in the Draft Churchill Closure report. No new traffic counts will be conducted. Churchill Closure (New Idea - Roundabout at Alma Street and Embarcadero Road): This new idea proposes to close Churchill Avenue at the Caltrain grade crossing. West of the Caltrain tracks, Churchill will not provide east-west connection to vehicular traffic. Pedestrian and bicycle connection across Alma Street will be provided via a tunnel under the Caltrain tracks. The Churchill closure would result in some traffic that would be diverted to Embarcadero Road that would cause significant impacts to the Alma Street/Embarcadero Road intersections that include Kingsley Avenue, Lincoln Avenue and High Street. To alleviate impacts caused by the Churchill Avenue closure, this alternative proposes a viaduct over Embarcadero Road for the Caltrain and an at-grade roundabout that would provide direct connections between Alma Street and Embarcadero Road. CONSULTANT will quantify the delay and level of service for the proposed Alma/Embarcadero roundabout using Synchro 10. Traffic operations at the roundabout Vers.: Aug. 5, 2019 Page 7 of 20 will be analyzed under existing and future conditions. Existing AM and PM peak hour traffic counts and future volumes for Alma/Lincoln, Alma/Embarcadero slip ramp, High Street/Embarcadero Road, Alma/Kingsley will be obtained from the Draft Churchill Closure report. No new traffic counts will be conducted. Churchill Partial Underpass (New Idea): This alternative proposes to separate Caltrain from Churchill Avenue but preserve access to Alma street by keeping Churchill Avenue partially open via a modified underpass. It requires lowering both Churchill and Alma to allow West Churchill to pass underneath the Caltrain tracks, while keeping East Churchill at grade and closing it to through traffic from West Churchill. The most significant traffic-flow change is that no through traffic is allowed on Churchill Avenue across Alma Street. This alternative separates the bicycle and pedestrian traffic crossing Alma Street from vehicular traffic by providing a bridge over Churchill Avenue that connects to the bike trail next to Palo Alto High School. CONSULTANT will evaluate the intersection delay and level of service at the Alma/Churchill Avenue intersection with the proposed lane configuration and also evaluate the impacts of diverting the east-west through traffic from Churchill Avenue to Embarcadero Road and Oregon Expressway. Existing and future volumes at all intersections that would be affected by the proposed grade separation under this alternative will be obtained from the Draft Churchill Closure report. No new traffic counts will be conducted. Meadow/Charleston Viaduct: Under this alternative, a viaduct will be constructed via an elevated structure at the Meadow and Charleston crossings and both streets will continue to provide east-west connection for pedestrians, bicycles and vehicles. CONSULTANT will quantify the improvements in delay and level of service at the Alma/Meadows Drive and Alma/Charleston Road intersections with the proposed viaduct by comparing to existing conditions. New AM (7 – 9 AM) and PM (4-6 PM) peak hour traffic counts will be conducted for the Alma /Meadows Drive and Alma/Charleston Road intersections when schools are in session. Field observations will be conducted to collect information on lane geometry, signal timings, number of trains and gate down times, vehicular queue lengths to quantify intersection delay and level of service under existing conditions without a viaduct. VISSUM software that has the capability to analyze signal-preemption will be used to analyze intersection delay and level of service. Meadow/Charleston Underpass (New Idea): This alternative proposes to keep the Caltrain tracks at grade and lower Meadows Drive to go under the tracks and under Alma Road. Turning movements to and from Alma Street will be facilitated by a roundabout that would be provided to the east along Meadows Drive. CONSULTANT will conduct new AM and PM peak hour traffic counts along E. Meadows Drive at Park Boulevard, Alma Street, Emerson Street and Ramona Street intersections to quantify traffic operations under existing conditions and with the proposed underpass and roundabout. At Charleston Road, this alternative proposes to keep the Caltrain tracks at grade and lower Charleston Road to go under the tracks. Some turning movements will be prohibited at the intersection itself but will be facilitated by a roundabout that would be provided at Mumford Place. CONSULTANT will conduct new AM and PM peak hour traffic counts along Charleston Road at Park Boulevard, Alma Street, Wright Place and Mumford Place to quantify traffic operations under existing conditions and with the proposed underpass and roundabout. Task 6.2 –New Ideas Engineering and Costs City Council directed staff to explore new ideas identified by the XCAP. There are four (4) new ideas identified: Vers.: Aug. 5, 2019 Page 8 of 20 • South Tunnel At-Grade Concept • Embarcadero/Alma Roundabout and Viaduct • Churchill Crossing Concept • Charleston/Meadow Underpass Concept CONSULTANT will review up to four (4) new ideas and prepare a technical memo evaluating at a high- level the geometry, structures, right of way requirements, groundwater/stormwater impacts, traffic/access circulation, safe routes for pedestrians and bikes, and cost effective effectiveness. Based on feedback from the XCAP, up to three (3) new ideas will be advanced for further study. CONSULTANT will develop conceptual design for three (3) new grade separation ideas. In addition, CONSULTANT will identify design exceptions and constraints for the ideas. The effort will include developing planning-level design plan, profile, and cross-sections to develop a construction cost estimate, identify major constraints and assess key impacts against CITY’s adopted design criteria. Once engineering plan, profile and cross-sections are prepared, and submitted to CITY for initial review and comment, CONSULTANT will develop renderings and a 3D animation. This additional effort assumes four rendering views per new idea and a 3D animation as described in Task 4. Task 6 Deliverables a. Exhibits (engineering at a 15%-level for conceptual plan, profile and typical section for up to 3 new ideas) b. Preliminary Construction Cost Estimates for new ideas (up to 3 new ideas) c. Draft and Final Traffic Memorandum (up to 4 new ideas) d. Draft and Final Technical Memorandum of New Ideas (up to 4 new ideas) Vers.: Aug. 5, 2019 Page 20 of 20 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each task within the number of days/weeks specified on Attachment “B” Schedule of Performance. Attachment “B” reflects the currently anticipated schedule. CONSULTANT will regularly update the schedule in consultation with CITY’s Project Manager. The time to complete each task may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. (See following page for Schedule) DocuSign Envelope ID: 7AAFDF50-1ABE-44D8-94AE- DocuSign Envelope ID: 2E3AB548-E6D0-4A38-8248-8A9EAEEC7829 56471B8229D0 ATTACHMENT "B" Schedule of Performance City of Palo Alto Rail Program Management Services ID Task Name Duration Start Finish Predecessors 1 NOTICE TO PROCEED 0 wks Mon 4/23/18 Mon 4/23/18 2 TASK 1 - Project Management 34.2 wks Mon 4/30/18 Mon 12/24/18 3 Kick-off Meeting 1 day Mon 4/30/18 Mon 4/30/18 1FS+1 wk 4 Prepare Project Execution Plan and Quality Assurance Procedures 4 wks Tue 5/1/18 Mon 5/28/18 3 5 Baseline Schedule 4 wks Tue 5/1/18 Mon 5/28/18 3 6 Monthly Invoices, Progress Reports & Schedule Updates 34 wks Tue 5/1/18 Mon 12/24/18 3 7 Meetings 30 wks Mon 5/21/18 Fri 12/14/18 8 Biweekly (20) 30 wks Mon 5/21/18 Fri 12/14/18 1FS+4 wks 9 City Council Rail Committee (8) 30 wks Mon 5/21/18 Fri 12/14/18 8SS 10 Planning and Transportation Commission (4) 30 wks Mon 5/21/18 Fri 12/14/18 8SS 11 City Council (4) 30 wks Mon 5/21/18 Fri 12/14/18 8SS 12 Other Transportation Agencies / Local Jurisdictions (10) 30 wks Mon 5/21/18 Fri 12/14/18 8SS 13 TASK 2 - Data Collection Review 12 wks Mon 4/30/18 Mon 7/23/18 14 Existing Studies 4 wks Tue 5/1/18 Mon 5/28/18 3 15 Technical Data and As-builts 4 wks Tue 5/1/18 Mon 5/28/18 3 16 Field Review 1 wk Tue 5/29/18 Mon 6/4/18 14,15 17 Base Mapping (from Caltrain) 0 wks Mon 4/30/18 Mon 4/30/18 3 18 Traffic Data Collection and Review 8 wks Tue 5/29/18 Mon 7/23/18 15 19 Right-of-Way Research 4 wks Tue 5/29/18 Mon 6/25/18 15 20 Utility Research 8 wks Tue 5/29/18 Mon 7/23/18 15 21 Draft Design Criteria 4 wks Tue 5/29/18 Mon 6/25/18 15 22 City Review 2 wks Tue 6/26/18 Mon 7/9/18 21 23 Final Design Criteria 2 wks Tue 7/10/18 Mon 7/23/18 22 24 TASK 3 - TAC Meetings 34 wks Tue 5/1/18 Mon 12/24/18 25 Convene TAC 4 wks Tue 5/1/18 Mon 5/28/18 3 26 TAC Meetings (8) 30 wks Tue 5/29/18 Mon 12/24/18 25 27 TASK 4 - Community Engagement 36 wks Tue 5/1/18 Mon 1/7/19 28 Draft Community Engagement Plan 1 wk Tue 5/1/18 Mon 5/7/18 3 29 City Review 1 wk Tue 5/8/18 Mon 5/14/18 28 30 Final Community Engagement Plan 1 wk Tue 5/15/18 Mon 5/21/18 29 31 Community Workshops (6) 28 wks Mon 6/4/18 Mon 12/17/18 32 Workshop #1 0 days Mon 6/4/18 Mon 6/4/18 28FS+4 wks 33 Workshop #2 0 days Mon 7/2/18 Mon 7/2/18 32FS+4 wks 34 Workshop #3 0 days Mon 8/13/18 Mon 8/13/18 33FS+6 wks 35 Workshop #4 0 days Mon 9/24/18 Mon 9/24/18 34FS+6 wks 36 Workshop #5 0 days Mon 11/5/18 Mon 11/5/18 35FS+6 wks 37 Workshop #6 0 days Mon 12/17/18 Mon 12/17/18 36FS+6 wks 38 Community Engagement White Paper 31 wks Tue 6/5/18 Mon 1/7/19 39 Workshop Summary #1 1 wk Tue 6/5/18 Mon 6/11/18 32 40 Workshop Summary #2 1 wk Tue 7/3/18 Mon 7/9/18 33 41 Workshop Summary #3 1 wk Tue 8/14/18 Mon 8/20/18 34 42 Workshop Summary #4 1 wk Tue 9/25/18 Mon 10/1/18 35 43 Workshop Summary #5 1 wk Tue 11/6/18 Mon 11/12/18 36 44 Workshop Summary #6 1 wk Tue 12/18/18 Mon 12/24/18 37 45 Executive Summary 2 wks Tue 12/25/18 Mon 1/7/19 39,40,41,42,43,44 46 Online questionnaire (2) 12 wks Tue 6/5/18 Mon 8/27/18 47 Questionnaire #1 2 wks Tue 6/5/18 Mon 6/18/18 32 48 Questionnaire #2 2 wks Tue 8/14/18 Mon 8/27/18 34 49 Database of community / stakeholder comments 20 wks Tue 5/22/18 Mon 10/8/18 30 50 Website Input 20 wks Tue 5/22/18 Mon 10/8/18 30 51 Content for Direct Mailings (4) 20 wks Tue 5/22/18 Mon 10/8/18 30 52 3D graphics / photo simulations (8) 6 wks Tue 8/21/18 Mon 10/1/18 60 53 3D 360 video flyovers (4) 6 wks Tue 8/21/18 Mon 10/1/18 60 54 TASK 5 - Alternative Analysis 26 wks Tue 5/15/18 Mon 11/12/18 55 Supplement Reports 8 wks Tue 7/3/18 Mon 8/27/18 56 Trenching and Tunneling White Paper 8 wks Tue 7/3/18 Mon 8/27/18 33 57 Palo Alto Financing White Paper 8 wks Tue 7/3/18 Mon 8/27/18 33 58 Rail Corridor Circulation Study 8 wks Tue 7/3/18 Mon 8/27/18 33 59 Evaluate and select feasible alternatives 8 wks Tue 5/15/18 Mon 7/9/18 3FS+2 wks 60 Selection of feasible alternatives 0 wks Mon 8/20/18 Mon 8/20/18 59,13FS+4 wks 61 Draft Evaluation Report 8 wks Tue 8/21/18 Mon 10/15/18 60 62 City Review 2 wks Tue 10/16/18 Mon 10/29/18 61 63 Final Evaluation Report 2 wks Tue 10/30/18 Mon 11/12/18 62 64 TASK 6 - Alternative Recommendation 22 wks Tue 8/21/18 Mon 1/21/19 65 Develop draft concept plans for recommended alternatives 8 wks Tue 8/21/18 Mon 10/15/18 60 66 Develop evaluation/ranking matrix 8 wks Tue 8/21/18 Mon 10/15/18 60 67 RECOMMENDED ALTERNATIVE 0 wks Mon 11/5/18 Mon 11/5/18 66,36 68 Draft Summary White Paper 4 wks Tue 11/6/18 Mon 12/3/18 65,67 69 City Review 4 wks Tue 12/4/18 Mon 12/31/18 68 70 Final Summary White Paper 2 wks Tue 1/8/19 Mon 1/21/19 69,45 71 TASK 7 - CAHSR Environmental Analysis Phase 30 wks Tue 5/1/18 Mon 11/26/18 72 Draft Comments / Supplemental Information to CAHSR 30 wks Tue 5/1/18 Mon 11/26/18 3 73 Attend Meetings (2) 30 wks Tue 5/1/18 Mon 11/26/18 72SS 74 TASK 8 - Financing Plan 12 wks Tue 8/21/18 Mon 11/12/18 75 Provide financial advise on funding strategies 2 wks Tue 8/21/18 Mon 9/3/18 60 76 Draft Rail Financing White Paper 6 wks Tue 9/4/18 Mon 10/15/18 75 77 City Review 2 wks Tue 10/16/18 Mon 10/29/18 76 78 Final Rail Financing White Paper 2 wks Tue 10/30/18 Mon 11/12/18 77 79 OPTIONAL SERVICES - Environmental Analysis and PSR 0 wks Mon 1/21/19 Mon 1/21/19 80 Begin CEQA and NEPA clearance support and PSR 0 wks Mon 1/21/19 Mon 1/21/19 70,45 2019 F M A M J J A S O N D J F NOTICE TO PROCEED 4/23 TASK 1 - Project Management 12/24 Kick-off Meeting 4/30 are Project Execution Plan and Quality Assurance Procedures 5/28 Baseline Schedule 5/28 Monthly Invoices, Progress Reports & Schedule Updates 12/24 Biweekly (20) 12/14 City Council Rail Committee (8) 12/14 Planning and Transportation Commission (4) 12/14 City Council (4) 12/14 Other Transportation Agencies / Local Jurisdictions (10) 12/14 Existing Studies 5/28 Technical Data and As-builts 5/28 Field Review 6/4 Base Mapping (from Caltrain) 4/30 Traffic Data Collection and Review 7/23 Right-of-Way Research 6/25 Utility Research 7/23 Draft Design Criteria 6/25 City Review 7/9 Final Design Criteria 7/23 Convene TAC 5/28 TAC Meetings (8) 12/24 TASK 4 - Community Engagement 1/7 Draft Community Engagement Plan 5/7 City Review 5/14 Final Community Engagement Plan 5/21 Community Workshops (6) 12/17 Workshop #1 6/4 Workshop #2 7/2 Workshop #3 8/13 Workshop #4 9/24 Workshop #5 11/5 Workshop #6 12/17 Community Engagement White Paper 1/7 Workshop Summary #1 6/11 Workshop Summary #2 7/9 Workshop Summary #3 8/20 Workshop Summary #4 10/1 Workshop Summary #5 11/12 Workshop Summary #6 12/24 Executive Summary 1/7 Questionnaire #1 6/18 Questionnaire #2 8/27 Database of community / stakeholder comments 10/8 Website Input 10/8 Content for Direct Mailings (4) 10/8 3D graphics / photo simulations (8) 10/1 3D 360 video flyovers (4) 10/1 Trenching and Tunneling White Paper 8/27 Palo Alto Financing White Paper 8/27 Rail Corridor Circulation Study 8/27 Evaluate and select feasible alternatives 7/9 Selection of feasible alternatives 8/20 Draft Evaluation Report 10/15 City Review 10/29 Final Evaluation Report 11/12 TASK 6 - Alternative Recommendation 1/21 Develop draft concept plans for recommended alternatives 10/15 Develop evaluation/ranking matrix 10/15 RECOMMENDED ALTERNATIVE 11/5 Draft Summary White Paper 12/3 City Review 12/31 Final Summary White Paper 1/21 Draft Comments / Supplemental Information to CAHSR 11/26 Attend Meetings (2) 11/26 Provide financial advise on funding strategies 9/3 Draft Rail Financing White Paper 10/15 City Review 10/29 Final Rail Financing White Paper 11/12 OPTIONAL SERVICES - Environmental Analysis and PSR 1/21 Begin CEQA and NEPAclearance support and PSR 1/21 Printed: Thu 3/29/18 4:10 PM Task Critical Task Milestone Summary Progress City of Palo Alto Rail Program Management Services - Amendment No. 1 and 2 ID Task Name Duration Start Finish % Complete Predecessors 1 NOTICE TO PROCEED - Original Contract 0 wks Mon 4/23/18 Mon 4/23/18 100% 2 NOTICE TO PROCEED - Amendment No. 1 0 wks Mon 6/24/19 Mon 6/24/19 100% 3 NOTICE TO PROCEED - Amendment No. 2 (assumed) 0 wks Mon 4/20/20 Mon 4/20/20 0% 4 Task 1 - Project Management and Administration 131.2 wks Mon 4/23/18 Mon 10/26/20 78% 5 Kick-off Meeting 1 day Mon 4/23/18 Mon 4/23/18 100% 1 6 Performance and Quality Monitoring 131 wks Tue 4/24/18 Mon 10/26/20 78% 5 7 Coordination Meetings - includes City Council Meetings 131 wks Tue 4/24/18 Mon 10/26/20 78% 5 8 Monthly Invoicing, Progress Reports and Schedule 131 wks Tue 4/24/18 Mon 10/26/20 78% 5 9 Task 2 - Data Collection and Investigation 33.8 wks Tue 4/24/18 Fri 12/14/18 100% 18 Task 3 - Palo Alto Technical Advisory Committee (TAC) 4 wks Thu 11/15/18 Wed 12/12/18 100% 20 Task 4 - Community Engagement 119.8 wks Tue 4/24/18 Mon 8/10/20 88% 21 Develop outreach plan 8 wks Tue 4/24/18 Mon 6/18/18 100% 5 22 Community Meetings 63 wks Thu 8/23/18 Thu 11/7/19 100% 23 Community Meeting #1 0 wks Thu 8/23/18 Thu 8/23/18 100% 24 Community Meeting #2 0 wks Wed 11/28/18 Wed 11/28/18 100% 25 Community Meeting #3 0 wks Wed 3/27/19 Wed 3/27/19 100% 26 Community Meeting #4 0 wks Thu 11/7/19 Thu 11/7/19 100% 27 Community Advisory Panel (CAP) Meetings (total 7) 30.2 wks Wed 8/15/18 Wed 3/13/19 100% 28 Extended Community Advisory Panel (XCAP) (through June 17, 2020) 52.2 wks Wed 6/19/19 Wed 6/17/20 80% 29 Town Hall Meetings 20 wks Thu 2/20/20 Thu 7/9/20 0% 30 Town Hall #1 0 wks Thu 2/20/20 Thu 2/20/20 100% 31 Town Hall #2 (Virtual) 0 wks Thu 6/25/20 Thu 6/25/20 0% 32 Town Hall #3 (Virtual) 0 wks Thu 7/9/20 Thu 7/9/20 0% 33 Council Meetings 17.4 wks Thu 4/9/20 Mon 8/10/20 0% 34 Rail work plan and contract amendment prints for Council 0 wks Thu 4/9/20 Thu 4/9/20 0% 35 Take rail work plan and contract amendment to City Council 0 wks Mon 4/20/20 Mon 4/20/20 0% 36 XCAP update to Council 0 wks Mon 6/8/20 Mon 6/8/20 0% 37 Council Discussion and Decision on preferred alternative 0 wks Mon 8/10/20 Mon 8/10/20 0% 38 Task 5 - Identify Alternatives for Analysis 0 wks Tue 6/19/18 Tue 6/19/18 100% 40 Task 6 - Identify Recommended Alternatives for Analysis 130.2 wks Tue 6/19/18 Tue 12/15/20 28% 41 Alternatives for analysis augmented by amendment no. 1 68.8 wks Tue 6/19/18 Fri 10/11/19 40% 39 42 Alternative Evaluation 68 wks Tue 6/19/18 Mon 10/7/19 80% 43 Traffic Impact Analysis 16 wks Mon 12/17/18 Fri 4/5/19 80% 14 44 Traffic Micro-simulation for Existing Conditions 12 wks Mon 6/24/19 Fri 9/13/19 0% 2,24 45 Traffic Mitigation 8 wks Mon 6/24/19 Fri 8/16/19 0% 2,24 46 Embarcadero/Alma Widening Concept Designs 16 wks Mon 6/24/19 Fri 10/11/19 0% 2 47 South Palo Alto Tunnel 16 wks Mon 6/24/19 Fri 10/11/19 0% 2 48 South Palo Alto Tunnel with freight at-grade separate from Caltrain tracks 16 wks Mon 6/24/19 Fri 10/11/19 0% 2 49 Churchill Viaduct 16 wks Mon 6/24/19 Fri 10/11/19 0% 2 50 New Ideas from XCAP 27 wks Wed 12/11/19 Tue 6/16/20 25% 51 Meet with Staff and XCAP Technical Group (Meadow) 23 wks Wed 12/11/19 Tue 5/19/20 0% 52 Meet with Staff and XCAP Technical Group (Charleston) 21 wks Wed 12/25/19 Tue 5/19/20 0% 51SS+2 wks 53 Layout, Typical Sections & Renderings (Meadow) 7 wks Mon 3/30/20 Fri 5/15/20 0% 54 Layout, Typical Sections & Renderings (Charleston) 7 wks Mon 3/30/20 Fri 5/15/20 0% 55 Prepare noise evaluation memo 16.8 wks Mon 2/3/20 Thu 5/28/20 100% 56 City Review 1 wk Fri 5/29/20 Thu 6/4/20 95% 55 57 Prepare presentation material for noise evaluation 0 wks Thu 6/4/20 Thu 6/4/20 0% 56 58 Prepare traffic memo 4.8 wks Mon 4/13/20 Thu 5/14/20 100% 59 Prepare animations for Churchill and Meadow/Charleston Alt 4 wks Wed 5/20/20 Tue 6/16/20 0% 52 60 Compile cost estimates 4 wks Mon 5/18/20 Fri 6/12/20 0% 53,54 61 Outreach Materials 23 wks Mon 2/3/20 Fri 7/10/20 0% 62 Outline and setup for town halls, virtual town halls and XCAP mtgs 23 wks Mon 2/3/20 Fri 7/10/20 0% 63 Update fact sheets, create new fact sheets for new ideas 4 wks Mon 5/18/20 Fri 6/12/20 0% 53,54 64 Project Study Report 61.4 wks Mon 10/14/19 Tue 12/15/20 0% 65 Alternatives for analysis augmented by amendment no. 1 12 wks Mon 10/14/19 Fri 1/3/20 0% 42,43,44,45,46,47,48,49 66 New Ideas from XCAP 12 wks Wed 6/17/20 Tue 9/8/20 0% 53,54,55,56,57,58,59,60 67 Draft PSR 0 wks Tue 9/8/20 Tue 9/8/20 0% 66,65 68 City Review 4 wks Wed 9/9/20 Tue 10/6/20 0% 67 69 Revise PSR 4 wks Wed 10/7/20 Tue 11/3/20 0% 68 70 Final PSR 0 wks Tue 11/3/20 Tue 11/3/20 0% 69 71 Publish PSR 0 wks Tue 12/15/20 Tue 12/15/20 0% 70FS+6 wks 72 Task 7 - CAHSR 8 wks Wed 7/8/20 Tue 9/1/20 0% 73 Assist City 8 wks Wed 7/8/20 Tue 9/1/20 0% 74 Task 8 - Financing Plan 4 wks Wed 9/9/20 Tue 10/6/20 0% 75 Funding Advisory Services 4 wks Wed 9/9/20 Tue 10/6/20 0% 68SS 16 2017 2018 2019 2020 20 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 NOTICE TO PROCEED - Original Contract 4/23 NOTICE TO PROCEED - Amendment No. 1 6/24 NOTICE TO PROCEED - Amendment No. 2 (assumed) 4/20 Kick-off Meeting 4/23 Performance and Quality Monitoring 10/26 Coordination Meetings - includes City Council Meetings 10/26 Monthly Invoicing, Progress Reports and Schedule 10/26 Develop outreach plan 6/18 Community Meeting #1 8/23 Community Meeting #2 11/28 Community Meeting #3 3/27 Community Meeting #4 11/7 Community Advisory Panel (CAP) Meetings (total 7) 3/13 Extended Community Advisory Panel (XCAP) (through June 17, 2020) 6/17 Town Hall #1 2/20 Town Hall #2 (Virtual) 6/25 Town Hall #3 (Virtual) 7/9 Rail work plan and contract amendment prints for Council 4/9 Take rail work plan and contract amendment to City Council 4/20 XCAP update to Council 6/8 Council Discussion and Decision on preferred alternative 8/10 Task 5 - Identify Alternatives for Analysis 6/19 Task 6 - Identify Recommended Alternatives for Analysis 12/15 Alternative Evaluation 10/7 Traffic Impact Analysis 4/5 Traffic Micro-simulation for Existing Conditions 9/13 Traffic Mitigation 8/16 Embarcadero/Alma Widening Concept Designs 10/11 South Palo Alto Tunnel 10/11 South Palo Alto Tunnel with freight at-grade separate from Caltrain tracks 10/11 Churchill Viaduct 10/11 New Ideas from XCAP 6/16 Meet with Staff and XCAP Technical Group (Meadow) 5/19 Meet with Staff and XCAP Technical Group (Charleston) 5/19 Layout, Typical Sections & Renderings (Meadow) 5/15 Layout, Typical Sections & Renderings (Charleston) 5/15 Prepare noise evaluation memo 5/28 City Review 6/4 Prepare presentation material for noise evaluation 6/4 Prepare traffic memo 5/14 Prepare animations for Churchill and Meadow/Charleston Alt 6/16 Compile cost estimates 6/12 Outline and setup for town halls, virtual town halls and XCAP mtgs 7/10 Update fact sheets, create new fact sheets for new ideas 6/12 Project Study Report 12/15 Alternatives for analysis augmented by amendment no. 1 1/3 New Ideas from XCAP 9/8 Draft PSR 9/8 City Review 10/6 Revise PSR 11/3 Final PSR 11/3 Publish PSR 12/15 Assist City 9/1 Funding Advisory Services 10/6 Printed: Tue 6/2/20 11:40 AM Task Critical Task Milestone Summary Progress Professional Services Rev. April 27, 2016 20 EXHIBIT “C” COMPENSATION CITY agrees to compensate CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as Exhibit “C-1” up to the not to exceed budget amount for each task set forth below. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, and the total compensation for Additional Services do not exceed the amounts set forth in Section 4 of this Agreement. TASK ORIGINAL CONTRACT NOT TO EXCEED AMOUNT NOT TO EXCEED AMOUNT ADDED OR (SUBTRACTED) BY AMENDMENT NO 1 NOT TO EXCEED AMOUNT ADDED BY AMENDMENT NO 2 Task 1 Project Management $225,184.00 $136,825 $48,827 Task 2 Data Collection & Review $121,117.20 $12,360 $0 Task 3 Convene Technical Advisory $51,873.60 ($39,806) $0 Committee Meetings Task 4 Community Engagement $285,885.60 $470,050 $79,626 Task 5 Identify Alternative Analysis $177,420.00 $0 $0 Task 6 Identify Recommended Alternatives $312,523.20 $387,406 $178,419 Task 7 Assist with CAHSR Environmental $32,424.00 $0 $0 Analysis Phase Task 8 Financing Plan $28,032.00 $59,290 $0 Reimbursables and Other Direct Costs $44,200.00 $0 $3,000 Additional Services 0 $180,000 $0 TOTAL CONTRACT AMOUNT $1,278,660.0 $1,206,126 $309,872 MAXIMUM TOTAL COMPENSATION $2,794,658.00 Professional Services Rev. April 27, 2016 21 TOTAL BASIC SERVICES (AMENDMENT NO. 2) $ 306,872.00 TOTAL BASIC SERVICES (AMENDMENT NO. 1) $1,026,126.00 TOTAL BASIC SERVICES (ORIGINAL CONTRACT) $1,234,460.00 Reimbursable Expenses $47,200.00 Additional Services $180,000.00 Maximum Total Compensation $2,794,658.00 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $2,500.00 shall be approved in advance by the CITY’s project manager. EXHIBIT C-3 HOURLY RATE SCHEDULE - AMENDMENT NO. 2 Amendment 2 - Palo Alto Railroad Grade Separation Program Classification ==> SUBS ODCs Total AECOM Hours TOTAL $ Principal in Charge Lead Project Professional- Track/Sys Project Manager Lead Project Engr-Civil Senior Project Engr-Civil Project Professional Controls Project Engr - Civil Sr Project Engr- Structure Sr Project Engr - Cost Estimating Sr Ilustrator Sr Ilustrator Sr CADD Technician CADD Technician Project Assistant Alta Apex Hexagon WRECO 2020 Hourly Billing Rate ==> $327.95 $275.16 $282.46 $222.15 $224.52 $207.99 $154.00 $254.98 $188.70 $178.11 $142.62 $142.59 $106.88 $90.96 1.00 1.00 1.00 1.00 1.00 1.0 PROJECT MANAGEMENT 1.1 Project Management and Administration 10 15 10 $ 1,500 35 $11,096 1.2 Performance and Quality Monitoring 30 60 90 $26,786 1.3 Monthly Invoicing, Progress Reports, and Schedule 10 20 32 $1,050 62 $10,945 Subtotal Hours 40 0 85 0 0 30 0 0 0 0 0 0 0 32 187 Subtotal Cost $13,118 $0 $24,009 $0 $0 $6,240 $0 $0 $0 $0 $0 $0 $0 $2,911 $0 $1,500 $1,050 $0 $0 $48,827 4.0 COMMUNITY ENGAGEMENT 4.1a New Idea - Churchill Partial Underpass Animations & Renderings 4 2 60 92 10 168 $26,542 4.1b New Idea - Meadow Underpass Animations & Renderings 4 2 60 92 10 168 $26,542 4.1c New Idea - Charleston Underpass Animations & Renderings 4 2 60 92 10 168 $26,542 Subtotal Hours 0 12 6 0 0 0 0 0 0 180 276 0 30 0 504 Subtotal Cost $0 $3,302 $1,695 $0 $0 $0 $0 $0 $0 $32,060 $39,363 $0 $3,206 $0 $0 $0 $0 $0 $0 $79,626 6.0 IDENTIFY RECOMMENDED ALTERNATIVES 6.1 Traffic Engineering for Churchill and Meadow/Charleston Alternatives 12 8 $72,000 20 $77,167 6.2a Technical Memo for New Ideas (4) 10 18 24 52 $10,489 6.2b New Idea - Churchill Partial Underpass Engineering & Costs 2 20 17 18 48 3 40 30 $1,000 178 $34,960 6.2c New Idea - Meadow Underpass Engineering & Costs 3 20 16 18 48 2 40 30 $1,000 177 $34,810 6.2d New Idea - Charleston Underpass Engineering & Costs 2 10 16 24 2 40 30 $1,000 124 $23,993 Subtotal Hours 7 60 12 57 54 0 144 7 120 0 0 90 0 0 551 Subtotal Cost $2,296 $16,510 $3,390 $12,662 $12,124 $0 $22,176 $1,785 $22,644 $0 $0 $12,833 $0 $0 $0 $0 $72,000 $0 $3,000 $181,419 TOTAL Hrs 47 72 103 57 54 30 144 7 120 180 276 90 30 32 1,242 TOTAL Cost $15,414 $19,812 $29,093 $12,662 $12,124 $6,240 $22,176 $1,785 $22,644 $32,060 $39,363 $12,833 $3,206 $2,911 $0 $1,500 $73,050 $0 $3,000 1,242 $309,872 THE LEVEL OF EFFORT IS BASED ON THE FOLLOWING ASSUMPTIONS: 1) Scope of work is as defined in Amendment 2 Scope of services. 2) Expected timeline for the project will be extended from February 2020 to December 2020 (10 months). 3) City Council will make a decision on a preferred alternative by August 2020. 4) Billing rates are per the contract and have been escalated approximately 3%. Titles of Project Manager and Support Service Manager has been escalated more than 3%. 5) Postage for mailings are not included and will be paid by the City. 6) It is assumed that readily available topographic information from the Caltrain Modernization Project will be used for base mapping, supplemented by publicly available aerial images. 7) Property surveys, title searches & utility potholing are not included. 8) A rendering costs about $5000 each. 9) Polling not included in scope - City to conduct polling through another source. 10) Studying a new alternative plans, estimate, renderings, and animations is about $65,000. C:\Users\millette.litzinger\Documents\Litzinger Data\Palo Alto\Palo Alto Rail Mgmt Services Amendment 2 v5 Submitted.xlsx AECOM/URS 2020 RATE SCHEDULE The services under this Agreement will be compensated in accordance with the following consultant rate schedule and adjusted annually Name/Position/Title Fully-Burdened Hourly Rates** Principal Professional/Project Director $285 - $478 Senior Project Manager $227 - $347 Project Manager $206 - $284 Lead Project Professional/Engineer $214 - $381 Senior Project Professional/Engineer $163 - $271 Sr. Designer/Lab, Field, or CADD Supervisor $142 - $207 Sr. Technician* $130 - $189 Sr. CADD Technician/Sr. Illustrator/Designer* $130 - $177 Project Professional/Engineer $130 - $207 Project Administrator/Controller $117 - $177 Staff Professional/Engineer $81 - $143 Word Processor/Project Assistant/Editor* $71 - $141 Technician* $63 - $154 CADD Technician/Illustrator* $71 - $126 Clerk/Administrator/Intern* $38 - $113 * Overtime premium charged at cost where required by law for non-exempt employees ** Bill rates are computed as actual pay rate at time of service plus current FAR multiplier plus 10% fee (raw labor + 131.94% for FY 2019 plus 10% fee = 255.13%) ** Salaries are adjusted each January 1, but individual merit or promotional increases may occur at any time. Reimbursable Items to be Billed Subcontracted Services at cost In-house printing (per page) Color $1.00, B/W $.10, no markup Vehicles $90/day, $45/½ day, no markup Personal vehicles (mileage) Current IRS rate, no markup Other miscellaneous Expenses at cost APEX Billing Rate Table 2020 Rates Title Rate Markup Estimated Rate for Work Plan Principal $291.00 0% $299.73 Outreach Manager $266.00 0% $273.98 Alta Planning + Design Billing Rate Table 2020 Rates Title Rate Markup Estimated Rate Used for Work Plan Senior Principal $349.00 0% $349.00 Principal $291.00 0% $291.00 Principal $266.00 0% $266.00 Principal $237.00 0% $237.00 Principal - Senior Associate $220.00 0% $220.00 Principal - Senior Associate $199.00 0% $199.00 Principal - Senior Associate $193.00 0% $193.00 Principal - Senior Associate $187.00 0% $187.00 Principal - Senior Associate $182.00 0% $182.00 Senior Associate, Associate $175.00 0% $175.00 Senior Associate, Associate $167.00 0% $167.00 Senior Associate, Associate $162.00 0% $162.00 Associate Senior $152.00 0% $152.00 Associate Senior $147.00 0% $147.00 Associate Senior $139.00 0% $139.00 Senior + Level I $123.00 0% $123.00 Senior + Level I $113.00 0% $113.00 Level I + Level II $105.00 0% $105.00 Level I + Level II $95.00 0% $95.00 Administration $79.00 0% $79.00 Intern $72.00 0% $72.00 Hexagon Billing Rate Table 2020 Rates Merrill Morris Partners Billing Rate Table 2020 Rates Title Rate Markup Estimated Rate Used for Work Plan Principal Landscape Architect $208.00 0% $0.00 Sr Landscape Architect I $178.00 0% $0.00 Sr Landscape Architect Project Manager I $160.00 0% $0.00 Sr Landscape Project Manager I $160.00 0% $0.00 Landscape Architect Project Manager II $136.00 0% $0.00 Administration $84.00 0% $0.00 Title Rate Markup Estimated Rate Used President $288.00 0% $288.00 Principal $247.00 0% $247.00 Senior II $232.00 0% $232.00 Senior I $216.00 0% $216.00 Associate II $196.00 0% $196.00 Associate I $170.00 0% $170.00 Planner II $155.00 0% $155.00 Engineer II $155.00 0% $155.00 Planner I $129.00 0% $129.00 Engineer I $129.00 0% $129.00 Admin $108.00 0% $108.00 Graphics $108.00 0% $108.00 Senior CAD Tech $98.00 0% $98.00 Technician $77.00 0% $77.00 Intern $77.00 0% $77.00 WRECO Billing Rate Table 2020 Rates Title Rate Markup Estimated Rate Used for Work Plan Supervising Engineer $197.00 0% $197.00 Senior Engineer II $186.00 0% $186.00 Senior Engineer I $180.00 0% $180.00 Associate Engineer $124.00 0% $124.00 Project Engineer $124.00 0% $124.00 Staff Engineer $96.00 0% $96.00 Staff Engineer / CADD $93.00 0% $93.00 CADD $85.00 0% $85.00 Project Controls / Sr Administrator $74.00 0% $74.00 Principal Professional $116.00 0% $116.00 Supervising Professional II $96.00 0% $96.00 Supervising Professional I $79.00 0% $79.00 Senior Professional III $74.00 0% $74.00 Senior Professional II $64.00 0% $64.00 Senior Professional I $54.00 0% $54.00 Associate Professional III $47.00 0% $47.00 Associate Professional II $42.00 0% $42.00 Associate Professional I $37.00 0% $37.00 Staff Professional III $37.00 0% $37.00 Staff Professional II $32.00 0% $32.00 Staff Professional I $27.00 0% $27.00 Senior Technician III $54.00 0% $54.00 Senior Technician II $42.00 0% $42.00 Senior Technician I $37.00 0% $37.00 Technician III $32.00 0% $32.00 Technician II $27.00 0% $27.00 Technician I $22.00 0% $22.00 Sr Clerical / Tech Editor III $47.00 0% $47.00 Sr Clerical / Tech Editor II $42.00 0% $42.00 Sr Clerical / Tech Editor I $37.00 0% $37.00 Clerical / Tech Editor III $32.00 0% $32.00 Clerical / Tech Editor II $27.00 0% $27.00 Clerical / Tech Editor I $22.00 0% $22.00 Certificate Of Completion Envelope Id: 04A0CA4758664D20BB6B97A17391FF7E Status: Completed Subject: Please DocuSign: Amendment #2 C18171057 AECOM - Legal reviewed.pdf Source Envelope: Document Pages: 18 Signatures: 2 Envelope Originator: Certificate Pages: 2 Initials: 0 Terry Loo AutoNav: Enabled EnvelopeId Stamping: Disabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Terry.Loo@CityofPaloAlto.org IP Address: 199.33.32.254 Record Tracking Status: Original 6/9/2020 1:33:40 PM Holder: Terry Loo Terry.Loo@CityofPaloAlto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp R. Martin Czarnecki marty.czarnecki@aecom.com Authorized Signatory Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 34.100.75.97 Sent: 6/9/2020 1:39:51 PM Viewed: 6/9/2020 1:51:20 PM Signed: 6/9/2020 1:52:49 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Etty Mercurio etty.mercurio@aecom.com Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 194.129.64.4 Sent: 6/9/2020 1:52:53 PM Viewed: 6/9/2020 2:03:38 PM Signed: 6/9/2020 2:04:42 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Ripon Bhatia Ripon.Bhatia@CityofPaloAlto.org City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 6/9/2020 2:04:45 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Carbon Copy Events Status Timestamp Shahla Yazdy Shahla.Yazdy@CityofPaloAlto.org Security Level: Email, Account Authentication (None) Sent: 6/9/2020 2:04:46 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 6/9/2020 2:04:46 PM Certified Delivered Security Checked 6/9/2020 2:04:46 PM Signing Complete Security Checked 6/9/2020 2:04:46 PM Completed Security Checked 6/9/2020 2:04:46 PM Payment Events Status Timestamps City of Palo Alto (ID # 11421) City Council Staff Report Report Type: Action Items Meeting Date: 6/22/2020 City of Palo Alto Page 1 Summary Title: 488 University Ave: Request to Convert Residential Units to Hotel Use Title: PUBLIC HEARING / QUASI-JUDICIAL. 488 University Avenue [19PLN- 00038]: Request for a Waiver From Title 18 to Allow Conversion of a Residential Use to a Hotel Use to Accommodate 100 Guestrooms. In Addition, the Applicant Requests Approval of an Architectural Review and Historic Review Application for Interior and Exterior Renovations to the Hotel President to This Category 2 Historic Building as well as a Parking Adjustment to Accommodate the Conversion to a Hotel Use. The Project Also Includes a Conditional Use Permit to Allow for Restoration and use of a Historic Rooftop Garden and for the On-site Sale of Alcoholic Beverages. Proposed Revisions Include Structural and Seismic Retrofit of the Existing Structure. Zone District: Downtown Commercial District With Ground Floor and Pedestrian Overlays (CD-C)(GF)(P). Environmental Assessment: Exempt From the Provisions of the California Environmental Quality Act Pursuant to CEQA Guidelines Sections 15332 (In-fill Development), 15331 (Historical Resource Restoration/Rehabilitation), 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction). From: City Manager Lead Department: Planning and Development Services Recommendation Staff recommends that Council grant a waiver to allow conversion of a downtown residential use to a hotel use and approve the requested architectural review, historic review, parking adjustment, and conditional use permit applications, and the associated environmental exemption findings. Executive Summary City of Palo Alto Page 2 GCPA Owner, LLC, the owner of Hotel President, located at 488 University Avenue, requests Council approval of a waiver from Section 18.18.120 to allow conversion of the existing residential use to a non-residential (hotel) use. The proposed hotel use is consistent with the historic use of the property, which operated as a hotel from 1930 to 1968. The existing ground floor retail uses at the subject property would mostly remain though modifications will be made to the ground floor tenant spaces to accommodate a first-floor lobby for the hotel use. The project includes modifications to the existing building as well as a Conditional Use Permit (CUP). The existing building is a Category 2 (Major Building) on Palo Alto’s Historic Inventory and is eligible for listing in the California Register of Historic Resources; therefore, modifications to the proposed structure require architectural review and historic review. However, the Architectural Review Board (ARB) refers major architectural review applications on significant historic structures to the Historic Resources Board (HRB) for recommendation. The CUP allows for modifications to accommodate the continued use of an existing rooftop open space area and to allow the on-site sale of alcohol. Attachment A provides a location map of the project site. The project plans are included as a link available in Attachment E. A detailed Record of Land Use Action will be provided as a late packet item on June 18, 2020. In addition, staff will provide a confidential legal memorandum analyzing significant legal risks associated with alternative actions to the staff recommendation. Background The Hotel President was designed by noted architect Birge Clark in the Spanish Colonial Revival style and constructed in 1929-1930. It was identified as a “Category 2” (Major Building) on Palo Alto’s Historic Inventory in 1979. It has also been deemed eligible for listing in the California Register of Historic Resources. It operated as a commercial hotel from 1930 to 1968. Subsequently the upper five floors of the property were used for residential occupancy in small one or two room units until late 2018. There were 75 total residential units on the site and six ground floor retail spaces. The property is now vacant except for the ongoing commercial/retail uses in four of the six ground floor units. Two years ago, the property was sold, and the new owner expressed interest in converting the residential portion of the building to a hotel use. This resulted in significant public commentary and the Council enacted a no-fault renter eviction ordinance for certain sized buildings in the City.1 The City Council also directed staff to explore additional renter protection regulations and since then, the state legislature and Governor enacted other statewide renter reforms. During this time there were two other locally relevant legislative actions that were made more controversial in light of the anticipated land use conversion at the Hotel President. First, in 1 No Fault Eviction Ordinance https://www.cityofpaloalto.org/civicax/filebank/documents/66603 City of Palo Alto Page 3 February 2019, the City Council removed a restriction in the zoning code that limited the growth of non-residential floor area in the downtown to 350,000 square feet over its 1986 level.2 This action was consistent with a 2017 Council motion to regulate floor area for office and research and development uses on a citywide basis. In April 2019, the City Council considered another ordinance to remedy an inadvertent copying error in the municipal code that precluded any change in land use for downtown buildings that no longer met the City’s current development standards.3 Previously, land uses in non- compliant buildings could be replaced with other permissive land uses regardless of consideration that a building was taller or had more floor area than allowed in the current code. The President Hotel building and other downtown property owners were impacted by this code language that appeared to have been mistakenly enacted in 2016. The City Council adopted an ordinance that restored the ability for downtown property owners to change lawfully permitted land uses in non-conforming buildings but precluded the conversion of residential uses to non-residential uses. A property owner who believes this restriction is preempted by state or federal law may seek a waiver from the City Council (PAMC 18.18.120). Proposed Project In February 2019, the applicant applied for Architectural Review, Historic Review, and a CUP, all associated with a change of use to convert the residential space to a non-residential (hotel use). Hotel President is a ‘grandfathered’ legal non-complying facility with respect to building height, floor area ratio (FAR) and setback projections. This means that the design complied with the prevailing regulations at the time that it was constructed; however subsequent revisions to the municipal code have rendered the structure non-complying with respect to the current regulations. Following the City Council’s adoption of the above ordinance, the applicant provided information to support the request for a waiver. Waiver from Title 18 for Conversion of Use For non-complying facilities, PAMC 18.18.120(b)(2)(F) prohibits the conversion of residential space to a non-residential use. However, the City’s municipal code identifies a waiver process, under which the City Council may waive or adjust one or more requirements of Title 18 (Zoning) or Title 21 (Subdivisions and Other Divisions of Land) in order to avoid preemption by state or federal law. In order to process this request, the applicant must provide evidence to support the claim that state or federal law preempts this City regulation. The applicant requests a waiver from Title 18 to allow the conversion of a residential use to a hotel use, and provides 2 February 11, 2019 Council Report: https://www.cityofpaloalto.org/civicax/filebank/documents/68782 3 April 1, 2019 Council Report: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=59275.74&BlobID=70005 City of Palo Alto Page 4 evidence to support this claim, as discussed further in this report. Architectural and Historic Review The applicant proposes modifications to the interior and exterior of the existing historic structure to accommodate the new use. This requires both Architectural Review and Historic Review. In accordance with PAMC Section 16.49.050, the Architectural Review Board refers applications on significant historic structures to the Historic Resources Board for a recommendation on the proposed alterations. The existing building is a Category 2 historic structure on the City’s Historic Inventory, which is identified as a “Major Building” of regional importance, meritorious works of the best architects or an outstanding example of an architectural style. Therefore, any proposed modifications to the structure must retain the original historic character. Conditional Use Permit Pursuant to PAMC 18.18.060(e)(2), buildings within the CD-C subdistrict that are noncomplying for height or gross floor area shall be permitted to increase height and expand floor area to the minimum degree necessary to provide rooftop access and related amenities. The applicant is seeking approval of a conditional use permit (CUP) in accordance with this requirement. In addition, the applicant requests approval of a conditional use permit for the on-site sale of alcohol. CUP applications are typically evaluated at a staff level and the Director of Planning & Development Services issues a decision on the application. However, because this CUP is associated with the conversion of the use, which requires Council approval of a waiver, the Director has deferred the request for the CUP to Council in accordance with PAMC Section 18.40.170. Discussion The proposed project has been analyzed for consistency with the Comprehensive Plan, Palo Alto Municipal Code, Downtown Design Guidelines, and the Secretary of the Interior’s Standards for Rehabilitation of Historic Structures. Comprehensive Plan4 The Comprehensive Plan includes goals, policies and programs that guide the physical form of the City. ARB finding #1 requires that the design be consistent and compatible with applicable elements of the Palo Alto Comprehensive Plan. The Comprehensive Plan land use designation for the project site is Regional/Community Commercial. This land use designation is “intended to provide a wider variety of goods and services that the neighborhood shopping areas and include such uses as department stores, bookstores furniture stores, apparel shops, restaurants and non-retail services such as offices and banks.” Hotel uses are an allowed use within this 4 The Palo Alto Comprehensive Plan is available online: https://www.cityofpaloalto.org/gov/depts/pln/long_range_planning/2030_comprehensive_plan/default.asp City of Palo Alto Page 5 land use designation. A detailed review of the project’s consistency with the policies in the Comprehensive Plan is provided in Attachment B. The project is consistent with the policies in the Comprehensive plan and therefore fulfills the goals of the plan. Zoning Ordinance5 The site is zoned Downtown Commercial-Community with Ground Floor and Pedestrian Shopping Combining Districts (CD-C [GF][P]). The Downtown Commercial-Community District is intended to be “a comprehensive zoning district for the downtown business area, accommodating a wide range of commercial uses serving city-wide and regional business and service needs, as well as providing for residential uses and neighborhood service needs.” Hotel uses are permitted uses within the CD-C Zone District. The Ground Floor Combining District is intended to provide design guidelines and modify the uses allowed in the commercial districts and subdistricts to promote active, pedestrian-oriented uses, with a high level of transparency and visual interest at the ground level. The Pedestrian Shopping combining district is intended to modify the regulations of the commercial downtown district in locations where it is deemed essential to foster the continuity of retail stores and display windows and to avoid a monotonous pedestrian environment in order to establish and maintain an economically healthy retail district. The project proposes minor modifications to the façade at 488 University to accommodate the hotel use. These modifications are architecturally sensitive, retaining the integrity of the historic structure. The project retains a pedestrian entrance along the University frontage as well as windows, awnings, and the marquee, which create visual interest on the ground floor of this building. Three of the four existing ground floor retail uses on this parcel would remain in operation. Staff has performed a detailed review of the project’s consistency with applicable development standards. As detailed in the zoning compliance summary table in Attachment B, the proposed project complies with the requirements for the CD-C zone district, as well as the requirements of the Ground Floor and Pedestrian Shopping combining districts or is otherwise seeking, through the requested approvals, permission to deviate from certain code standards in a manner that is consistent with the zoning ordinance. With approval of the requested waiver and the CUP, the proposed project would be consistent with the zoning ordinance. Section 18.18.120 Waiver The subject building is a legal non-complying facility in that it complied with the prevailing zoning and building standards at the time that it was constructed. However, due to subsequent changes to the regulations, the building was rendered legal non-complying with respect to 5 The Palo Alto Zoning Ordinance is available online: http://library.amlegal.com/nxt/gateway.dll/California/paloalto_ca/paloaltomunicipalcode?f=templates$fn=default .htm$3.0$vid=amlegal:paloalto_ca City of Palo Alto Page 6 current standards for height (50 feet), floor area (maximum of 2.0 to 1 floor area ratio), and setbacks (basement, marquee entry, and sixth floor balcony protrude into the setbacks). For non-complying facilities PAMC 18.18.120(b)(2)(F) prohibits the conversion of residential space to a non-residential use. However, for cases where an applicant asserts preemption by state or federal law, the municipal code identifies a waiver process, which requires Council approval. The applicant’s statement of its position and claims with respect to its waiver request, along with supporting documentation, is provided in Attachment C. Primarily, the applicant claims that prohibiting the conversion of this property to a non- residential use would be contrary to and preempted by the Ellis Act. The applicant’s letter states that, “under the Ellis Act, a local government may not prohibit an owner from taking its property out of residential rental use, nor may a city impose a “prohibitive price” or unconstitutional condition on a party exiting the residential rental business, or a burdensome constraint on the subsequent use of property after the owner exercises Ellis Act rights.” Staff believes the applicant has made a sufficient showing to support the approval of a waiver under Section 18.18.120 and recommends that the requested waiver, allowing conversion to a hotel use, be granted. Section 18.18.120 broadly authorizes the City Council to waive or adjust provisions of Title 18 (Zoning) or Title 21 (Subdivisions and Other Divisions of Land), in response to a waiver request. Thus, rather than granting a waiver that would allow conversion of the residential use to a hotel use, the Council could adjust the City’s regulations on conversion of rental units to condominiums in Chapter 21.40, which currently prohibit conversion of the building to ownership housing. However, staff does not recommend such action, based on advice from the City Attorney’s Office. A thorough analysis of the legal risks associated with various options before the Council will be provided confidentially in tandem with this staff report. Rooftop Open Space The project proposes a new elevator, which would provide ADA compliant access throughout the building, including access to the rooftop open space. The elevator overrun would extend beyond the existing height of the building (80 feet) to 90 feet, three inches. This is the minimum necessary height to provide access to the rooftop. PAMC 18.18.060(e)(2) allows for this increase in height on legal non-complying buildings within the downtown area through approval of a Conditional Use Permit process. The project meets the conditional use permit findings with respect to revisions and access to the open space, as outlined in the Record of Land Use Action. In accordance with this code section, the floor area associated with rooftop access is not counted toward gross floor area; therefore, this would not increase the building’s non-compliance with respect to floor area. The project also includes modifications to the existing rooftop features, including existing City of Palo Alto Page 7 enclosed space on the rooftop. As shown on the project plans in Attachment E, these revisions would not increase the gross floor area or increase the height of the proposed structure, except as previously stated to accommodate access to the rooftop. Therefore, with approval of the requested CUP, the proposed modifications to the rooftop would comply with the zoning ordinance. Though this open space has historically been used by residents; conditions of approval have been provided to ensure that use of the rooftop open space by hotel guests would not be impactful to neighboring properties. Sale of Alcoholic Beverages The on-site sale of alcohol requires approval of a conditional use permit in accordance with PAMC 18.42.090. The project complies with the CUP findings, as outlined in the Record of Land Use Action. Therefore, with approval of the CUP, the on-site sale of alcoholic beverages would be consistent with the zoning ordinance. Modifications to a Historic Structure As outlined in the Historic Resources Memorandum entitled “Hotel President-SOI Standards Consultation Memorandum” dated March 2, 2020, the proposed modifications to this historic structure are consistent with the SOI standards for Treatment of a Historic Resources. This memorandum is provided in Appendix B of Attachment D. The findings for historic and architectural review approval are provided in the Record of Land Use Action. The Historic Resources Board held a hearing on the proposed project on May 14, 2020.6 At the hearing the board unanimously recommended approval of the project. The board’s motion included agreement with the conclusion that the building is eligible for the CRHR and an agreement with the conclusion that the project is consistent with the SOI Standards for the Treatment of Historic Resources. The HRB’s motion also included a provision that the applicant return to the HRB subcommittee for further review of some of the building’s proposed finishes, including: • The proposed new tile on the University Avenue façade • Details regarding the proposed modifications to the sixth floor guard • Color brushouts • Details of the arches of the lobby wall The Record of Land Use Action includes a condition of approval that requires the applicant to return to the HRB subcommittee prior to issuance of a building permit to provide these details. Ground Floor Retail Preservation In accordance with the City’s ground floor retail preservation ordinance, as codified in PAMC 6 Meeting Minutes Historic Resource Board, May 14, 2020: https://www.cityofpaloalto.org/civicax/filebank/documents/77187 City of Palo Alto Page 8 Section 18.40.180, ground floor retail and retail-like uses that were legally established as of March 2015 may only be replaced with other retail and retail-like uses. The proposed project’s ground floor retail and retail-like (restaurant) uses would therefore be required to remain or otherwise be replaced with other retail or retail-like uses. The proposed project modifies the ground floor retail spaces and former ground floor residential access to accommodate a lobby, bar, and kitchen for the hotel use. Hotel uses are considered retail-like uses in accordance with PAMC Section 18.04.030(125.1). Therefore, the proposed project increases the overall retail and retail-like uses on the ground floor. Multi-Modal Access & Parking The proposed hotel use increases the site’s existing non-compliance with respect to parking requirements in that it requires more parking in accordance with PAMC Section 18.52 than the existing use. Therefore, in order to allow for the conversion to a hotel use, the project would need to bring the parcel into compliance with the parking requirements. California Health and Safety Code Section 18962 requires that local jurisdictions provide a 25 percent reduction in parking requirements for conversion of a designated historical resource to any non-residential use. Therefore, with application of the 25 percent reduction, the proposed project is required to provide a total of 115 parking spaces. The applicant is proposing 14 spaces (12 standard spaces and 2 valet spaces) on-site and 25 spaces off-site at 330 Everett (11 standard spaces and 14 valet spaces). The remaining 76 spaces would be paid in-lieu to the Downtown Parking Assessment District; the current fee is $106,171 per space and is expected to increase to $111,862 per space in late August. The conditions of approval will require compliance with a valet management plan that has been reviewed and approved by the City’s Office of Transportation. The applicant will comply with bicycle parking requirements and does not propose any new curb cuts that could create a new hazard for bicyclists. Three-Party Parking Agreement The applicant proposes off-site parking for 25 of their required parking spaces at 330 Everett. Eleven of these spaces would be provided as standard spaces and 14 would be provided as valet spaces. Off-site parking is allowed in accordance with PAMC Section 18.52.080(d), which allows off-site parking at other sites within the boundaries of the parking assessment district. With this proposal, parking at a ratio of 0.75 parking spaces per unit would be provided for the senior housing use at this property. This complies with the current parking standards for senior housing facilities and would not conflict with the Planned Community Ordinance (PC-4053) for that site, which does not specify parking requirements. The conditions of approval will require documentation of the use of these parking spaces for Hotel President through a minor architectural review application and a three-party parking agreement between the two properties owners and the City. The agreement will ensure the parking spaces at 330 Everett City of Palo Alto Page 9 are not being used by any other entity except for the Hotel President and the senior housing facility. Transit Demand Management Plan The City requires implementation of a Transit Demand Management (TDM) plan in conjunction with the approval of parking adjustments, including parking design alternatives, such as the proposed valet parking plan. The TDM plan is also required to comply with the City’s Comprehensive Plan requirements, which identify TDM reduction requirements for projects within the Downtown area. The proposed TDM plan has been reviewed by the Office of Transportation. The Office of Transportation has included conditions of approval, which require revisions to the proposed TDM plan, prior to approval. Review and approval of the revised TDM plan will be required prior to approval of a building permit. Policy Implications The proposed project converts a residential use within an existing historic building to its historic hotel use. The project includes modifications to the interior and exterior that restore the existing historic building, and seismically retrofit the building. The policy implications associated with this change in use and the proposed modifications to the structure are discussed below and primarily relate to housing, compliance with state regulations, the treatment of historic resources, and safety. Housing The City’s Comprehensive Plan, including the adopted Housing Element, encourage residential uses throughout the City and identifies the City’s Regional Housing Needs Allocation (RHNA), which outline the City’s targets for the production of housing units at all income levels. The proposed project would convert an exisitng residential rental use to a non-residential (hotel use). Although this conversion is not consistent with goals encouraging housing development, the existing residential rental units were never identified as part of the City’s housing inventory. Therefore, the conversion of these units would not result in a loss of housing units that affects the City’s RHNA targets. The project site is currently vacant and has been vacant since November 2018. Historic As outlined in the Record of Land Use Action, the project is consistent with several policies outlined in the Land Use Element of the Comprehensive Plan related to the preservation and restoration of historic resources. Specifically, the project would result in rehabilitation of an existing Category 2 historic building that is currently vacant and encourage its reuse consistent with the historical use of the site. The proposed modifications to the building comply with the SOI standards and therefore would preserve the historic integrity of the structure, including its character defining features. City of Palo Alto Page 10 Safety The project includes a structural and seismic retrofit of the existing building, which would improve the safety of the building. These upgrades are consistent with the Comprehensive Plan Safety Element policies S-2.5 and S-2.6 which encourage seismic rehabilitation of exisitng buildings, particularly those whose loss would have the greatest community impacts. Because this is a hsitoric structure of major regional importance, seismic upgrades of this building are a priority under Policy S-2.6. Resource Impact The proposed project is a private development that is subject to cost recovery; therefore, processing of this application does not directly impact City resources. Hotel uses provide transit occupancy taxes to the City of Palo Alto. All hotel guests are required to pay transit occupancy taxes in accordance with PAMC Section 2.33; therefore the proposed hotel use will provide revenue for the city in the form of transit occupancy taxes. This revenue is split between the general fund and infrastructure. The project also proposes paying in-lieu fees to the Downtown Parking Assessment District for 76 additional spaces which cannot be feasibly parked on site. The current rate for in-lieu parking spaces is $106,171; therefore the applicant proposes to pay an estimated $8,068,996 toward the Downtown Parking Assessment District. In addition, the project would be subject to impact fees in the amount of $933,675.42. Timeline If approved, the project would file a building application for approval of the proposed revisions. Modifications to the proposed structure are anticiapted to take 16 months to construct. Exterior modifications are anticipated to take appoximately 12 weeks to construct. Stakeholder Engagement Several members of the public expressed concern regarding the conversion of a residential use to a non-residential use. Many of these concerns were provided in response to hearings in April 2019 regarding Title 18 amendments. Those proceedings ultimately resulted in code revisions that prohibited the conversion of residential uses to non reisdential uses on legal noncomplying buildings and created the waiver process, which is the subject of the current request. One current commercial tenant at the site also expressed concern that approval of the subject application would increase the property tax or insurance payments for the existing ground floor tenants. The applicant provided information to the tenant confirming that the proposed application would not result in a change/increase in property tax or insurance payments. Environmental Review The subject project has been assessed in accordance with the authority and criteria contained City of Palo Alto Page 11 in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. Specifically, the project was found to be exempt under CEQA pursuant to CEQA Guidelines Section 15332 (in-fill); 15331 (Restoration of Historic Resource); 15301(Existing Structures); and 15302 (Reconstruction) A documented exemption outlining how the project complies with these exemptions is included in Attachment D. The proposed modifications to the building would be consistent with the Secretary of the Interior’s Standards for Rehabilitation of Historic Resources, as outlined in the analyses provided in Appendices B and C of Attachment D. Attachments: Attachment A: Location Map Attachment B: Zoning Comparison Table Attachment C: Applicant Letter Regarding Waiver Attachment D: Documentation for CEQA Notice of Exemption Attachment E: Project Plans (DOCX) Page 1 of 2 ATTACHMENT B ZONING COMPARISON TABLE 488 University Avenue, 19PLN-00038 Table 1: COMPARISON WITH CHAPTER 18.18 (CD-C DISTRICT) Exclusively Non-Residential Development Standards Regulation Required Existing Proposed Minimum Setbacks Front Yard (Cowper St.) None Required 7 ft 1 in 7 ft 1 in Rear Yard None Required 0 ft 0 ft Interior Side Yard None Required 10 ft 10 ft Street Side Yard (University Ave.) None Required 0 ft(6) 0 ft(6) Special Setback Pursuant to Code Section 20.08 N/A N/A Minimum street setback for sites sharing a common block face with any abutting residential zone district Note 4 N/A N/A Minimum yard (ft) for lot lines abutting or opposite residential zone districts 10 feet (Note 1) N/A N/A Maximum Site Coverage None Required 3,092 sf 3,226 sf Maximum Height 50 ft (Note 3) 85 ft to penthouse 90 ft 1 in to Wireless equipment enclosure 90 ft 3 in to elevator Maximum Floor Area Ratio (FAR) 2.0:1 (18,850 sf) (Note 5) 5.42: 1 (51,115 sf) 5.36:1 (50,540 sf) Daylight Plane for lot lines abutting one or more residential zone districts Initial Height at side or rear lot line (Note 2) N/A N/A Slope (Note 2) N/A N/A Notes 1) The yard shall be planted and maintained as a landscaped screen, excluding area required for site access. 2) The initial height and slope shall be identical to those of the residential zone abutting the site line in question. 3) The maximum height within 150 feet of any abutting residential zone district shall not exceed the height limit of the abutting residential district. 4) The minimum street setback shall be equal to the residentially zoned setback for 150 feet from the abutting single-family or multiple family development. 5) FAR may be increased with transfers of development and/or bonuses for seismic and historic rehabilitation upgrades, not to exceed a total site FAR of 3.0:1 in the CD-C subdistrict or 2.0:1 in the CD-S or CD-N subdistricts. 6) Property includes entry marquee (8’-9”) on the ground floor and balcony (4’0”) on the 6th floor that encroach into this setback. Page 2 of 2 18.18.110 Context-Based Design Criteria. As further described in a separate attachment, development in a commercial district shall be responsible to its context and compatible with adjacent development, and shall promote the establishment of pedestrian oriented design. Table 2: CONFORMANCE WITH CHAPTER 18.52.040 (Off-Street Parking and Loading) for Downtown University Avenue Parking Assessment District Type Required Existing Proposed Conforms? Vehicle Parking (within the Downtown Parking Assessment District) PAMC 18.52.040 Table 2 All uses except residential: 1 space per 250 sf 7,645 sf x 5 floors = 38,225/250 = 153 spaces 115 spaces after State reduction (1) 12 spaces 14 spaces, 25 off-site, 76 in-lieu Yes (2) Bicycle Parking (within the Downtown Parking Assessment District) PAMC 18.52.040 Table 2 All uses except residential: 1 space per 2,500 sf 40% Long Term (LT) 60% Short Term (ST) 20 spaces 8 LT 12 ST 12 ST 11 Long Term 12 Short Term Yes Loading Space 10,000-99,999 sf 1 space 1 1 Yes (1) California Health & Safety Code Section 18962 allows a 25% reduction for historic properties (2) Off site parking required and payment of parking in-lieu fee Attachment C Direct Link to Applicant Letter Regarding Waiver: https://bit.ly/pa_waiver_letter Attachment D Direct Link to Documentation for CEQA Notice of Exemption: https://bit.ly/pa_ceqa_noe Attachment E Project Plans During Shelter-in-Place, project plans are only available online. Directions to review Project plans online: 1. Go to: bit.ly/PApendingprojects 2. Scroll to find “488 University Avenue” and click the address link 3. On this project specific webpage you will find a link to the Project Plans and other important information Direct Link to Project Webpage: https://www.cityofpaloalto.org/news/displaynews.asp?NewsID=4536&TargetID=319 City of Palo Alto (ID # 11405) City Council Staff Report Report Type: Action Items Meeting Date: 6/23/2020 City of Palo Alto Page 1 Summary Title: Downtown Palo Alto Business Improvement District Proposed Suspension of FY 2021 Assessments Title: PUBLIC HEARING: Adoption of a Resolution to Suspend Assessments for Fiscal Year 2021 on the Downtown Palo Alto Business Improvement District From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that the City Council hold a public hearing and adopt a resolution temporarily suspending the levy of assessments in Fiscal Year 2021 in connection with the Downtown Palo Alto Business Improvement District (BID). Background The BID was established by the City Council in 2004 pursuant to the California Parking and Business Improvement Area Law to promote the economic revitalization and physical maintenance of the Palo Alto Downtown business district. The Council appointed the Board of Directors of PADBPA, a non-profit corporation, as the Advisory Board for the BID. The Board’s purpose is to advise the Council on the method and basis for levy of assessments in the BID and the expenditure of revenues derived from the assessments. PADBPA in its capacity as the BID Advisory Board has monthly open meetings governed by the Brown Act which any business or individual can attend. In a typical year, such as 2019 (CMR 10315), without COVID-19 implications the City contracts with Palo Alto Downtown Business and Professional Association (PADBPA) to provide services to businesses in the BID. However, in May 2020 Council suspended the assessment for the BID due to the COVID-19 emergency (CMR 11219). Council subsequently suspended the BID assessment for FY2021, as well, on June 8. On June 8, 2020, the City Council adopted a Resolution Declaring an Intention to Temporarily Suspend the Levy of Assessment in the BID for Fiscal Year 2021, setting a date and time for the public hearing on the proposed to temporarily suspend assessments for June 23, 2020, at 5:00 PM, or thereafter, in the City Council Chambers (CMR 11358). City of Palo Alto Page 2 Discussion Traditionally the PADBPA provides an annual report in the spring including specifics of the estimated revenues and expenses to be collected and services to be provided by PADBPA in the upcoming fiscal year. And in a typical year, PADBPA would now be returning to Council for confirmation of the report and request for to levy assessments for FY 2021. Council’s approval of the levy would trigger a renewal of the contract with PADBPA for the upcoming fiscal year. The City Council rescinded the Downtown BID assessment for FY 2020 on May 4, 2020 and therefore, PADBPA is not submitting a report for FY 2020 activities. After consideration with PADBPA and the City Council, it is recommended that the Downtown BID assessment continue to be suspended for one more year through FY 2021. As such, no BID activities are expected to occur in FY 2021. Staff will collaborate with PADBPA to determine next steps and the future state for the Downtown BID during FY 2021. BID assessments have been collected by the City’s contractor MuniServices, LLC for the last several years along with the Business Registry Certificate program (BRC). A portion of the cost of MuniServices, LLC has been allocated to the BID and this will no longer happen in FY 2021. This transition was made to save costs, streamline efforts and provide businesses with one annual invoice, and aligning the BID and Business Registry Certificate (BRC) fee collection timeline. As a result of this continued suspension, staff expects to have MuniServices, LLC continue with BRC data collection but discontinue BID collection work in FY 2021. This contract is currently a blended service between the BRC and BID, therefore staff will explore contract negotiations with MuniServices as a result of this expected reduction in scope in order to achieve cost savings. Work to continue to register businesses for the BRC without collection of fees continues. This will ensure that the BRC database continues to improve. In FY2021, the City plans to identify means and methods to further enhance collection of the business data in the BRC database as directed by the City Council in March 2020. Resource Impacts The BID is set up as a separate fund within the City’s accounting system. Recently, the BID has required a General Fund subsidy as collected assessments fell short of the costs of operating the BID. With the rescinding and refunding of assessment revenue in FY 2020 per the Council action, the General Fund is expected to need to support the BID for expenses already accrued. A year-end contribution from the General Fund in an amount that is not expected to exceed $70,000 will be needed to balance the fund in FY 2020. Per the contract with PADBPA, the City acts as the collection agent for BID revenues and reimburses PADBPA’s expenses after receipt and verification of invoices. With the suspension of the BID there would be no expenditures in FY 2021 in the Downtown BID fund. However, costs from MuniServices, LLC. may be absorbed by the General Fund as the current contract scope and fee structure is a bundled agreement for both the BID and BRC. As mentioned above, staff will explore contract negotiations with MuniServices as a result of this expected reduction in scope in order to achieve cost savings. If this is unsuccessful, this would result in an City of Palo Alto Page 3 additional cost to the General Fund of approximately $8,000. Additional resources include staff time from the City Manager’s Office and Administrative Services Department to provide oversight to the BID, administer the contract with Avenu, liaise with stakeholders, and prepare the annual reauthorization. Stakeholder Engagement Staff has coordinated with the chair of the PADBPA on the recommendations included in this staff report. Environmental Review The proposed action is not a project for the purposes of the California Environmental Quality Act. Attachments: • Attachment A: Resolution Suspending Assessment for Downtown Business Improvement District Fiscal Year 2021 NOT YET ADOPTED 2020061002 1 Resolution No.____ Resolution of the Council of the City of Palo Alto Temporarily Suspending the Levy of Assessments Against Businesses Within the Downtown Palo Alto Business Improvement District for Fiscal Year 2021 R E C I T A L S A. The Parking and Business Improvement Area Law of 1989 (the "Law"), California Streets and Highways Code Sections 36500 et seq., authorizes the City Council to levy an assessment against businesses within a parking and business improvement area which is in addition to any assessments, fees, charges, or taxes imposed in the City. B. Pursuant to the Law, the City Council adopted Ordinance No. 4819 establishing the Downtown Palo Alto Business Improvement District (the "District") in the City of Palo Alto. C. The City Council, by Resolution No. 8416, appointed the Board of Directors of the Palo Alto Downtown Business & Professional Association (“PADBPA”), a California nonprofit mutual benefit corporation, to serve as the Advisory Board for the District (the "Advisory Board"). D. Since March 17, 2020, Santa Clara County has been under a series of Shelter in Place orders issued by the County Health Officer due to the COVID-19 pandemic and statewide emergency. E. Under the initial Shelter in Place order, most businesses in downtown Palo Alto were required to close. Most retail businesses were required to close entirely and restaurants were required to close to in-person dining. F. Two months later, on May 22, 2020, retail businesses were allowed to open for curbside pickup only, but many businesses remained closed due in part to the strict protocols required to be implemented in order to open and the substantially reduced customer base with most downtown offices still closed and travel restricted under the modified Shelter in Place order. G. Under the most recent Shelter in Place Order, issued on June 1, 2020, in- store retail and outdoor restaurant dining were allowed to resume effective June 5, 2020, with specified public health measures in place. NOT YET ADOPTED 2020061002 2 H. COVID-19 and the measures to mitigate the spread have resulted in significant financial loss and uncertainty for a tremendous number of people and businesses including those in Palo Alto. The financial impacts are anticipated to continue for months, if not longer. I. In recognition of the current challenges affecting downtown businesses, the City Council on May 4, 2020, rescinded the previously levied assessments for the District for Fiscal Year 2020 (July 1, 2019 through June 30, 2020). J. The City Council by Resolution No. ____, declared its intention to temporarily suspend the levied assessments against downtown businesses for Fiscal Year 2021 (July 1, 2020 through June 30, 2021), and scheduled a public hearing on the proposed suspension of assessment on June 23, 2020. K. On June 23, 2020 the City Council held a duly noticed public hearing at which all interested persons were afforded the opportunity to hear and be heard. NOW THEREFORE THE CITY COUNCIL OF THE CITY OF PALO ALTO RESOLVES AS FOLLOWS: SECTION 1. The Council hereby adopts the above Recitals as findings of the Council. SECTION 2. The City Council does hereby temporarily suspend the levy of assessments against businesses within the Downtown Palo Alto Business Improvement District for Fiscal Year 2021. // // // // // // // NOT YET ADOPTED 2020061002 3 SECTION 3. The Council finds that the adoption of this Resolution does not meet the definition of a project under Section 21065 of the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ _____________________________ Assistant City Attorney City Manager _____________________________ Director of Administrative Services City of Palo Alto (ID # 11439) City Council Staff Report Report Type: Action Items Meeting Date: 6/23/2020 City of Palo Alto Page 1 Summary Title: Adoption of Urgency Interim Ordinance Regarding Outdoor Dining and Retail Title: Adoption of an Urgency Interim Ordinance Temporarily Allowing Expansion of Outdoor Dining, Retail and Other Activities on Public and Private Property, and Relaxing Regulations Regarding Onsite Parking, On-sale and Consumption of Alcohol, Design/Architectural Review, and Permit Fees to Facilitate Such Outdoor use; and Adoption of a Resolution Authorizing Temporary Street Closures of California Avenue, University Avenue and Adjacent Downtown Blocks, and Approving a Temporary Pilot Parklet Program Including Standards and Requirements From: City Manager Lead Department: Planning and Development Services Recommendation Staff recommend that the Council: A. Adopt an Interim Urgency Ordinance (Attachment A) Temporarily Allowing Expansion of Outdoor Dining, Retail, and Other Activities on Public and Private Property and Relaxing Regulations Regarding Onsite Parking, On-Sale and Consumption of Alcohol, Design/Architectural Review, and Permit Fees, All to Facilitate Such Outdoor Use During the COVID-19 State of Emergency, With the Ordinance to Take Effect Immediately Upon Adoption; and B. Adopt a Resolution (Attachment B) Temporarily Closing Portions of California Avenue and University Avenue and Certain Downtown Streets Intersecting University Avenue Pursuant to California Vehicle Code Section 21101 and Approving a Pilot Parklet Demonstration Program Including Parklet Design Requirements, All to Facilitate Outdoor Dining and Retail. City of Palo Alto Page 2 Executive Summary On June 8, 2020, the Palo Alto City Council held a study session to discuss how the City might facilitate and enhance opportunities for outdoor dining and outdoor retail throughout the City of Palo Alto during the Shelter in Place period.1 At the meeting, Council members provided feedback to staff and broadly expressed support for the proposals in the staff report.2 This report describes the proposals which would be implemented through adoption of the ordinance and resolution. The programmatic and policy proposals are summarized in a table in Attachment C. The proposed ordinance and resolution cover such topics as: • Sidewalk Dining • Outdoor Retail Display and Sales Activities • Alcohol Consumption • Private Parking Lots • Street Closures • Parklets The proposed ordinance and resolution include additional topics that, though not explicitly discussed during the June 8 Study Session, further policy objectives aligned with the policies the Council did discuss. They further the overall objectives of ensuring Palo Alto’s business districts remain vibrant, that small businesses remain able to operate, and preventing further erosion of the local tax base. These additional proposals include: • Allowing Dining, Retail, and Alcohol Consumption in City-Owned Public Parking Lots • Allowing Personal Services, Indoor Recreation, and Other Uses to be Permitted Outdoors3 • Alcohol Consumption with a Meal in Downtown Plazas (Lytton and Cogswell) By taking action to adopt the resolution and ordinance, the Council will enable these programs and policies to be fully implemented. The proposed temporary provisions will expire at the end of calendar year 2020 or the local proclamation of emergency, whichever is later. Background On March 4, 2020, California Governor Gavin Newsom declared a State of Emergency due to the threat of Coronavirus Disease 2019 (COVID-19). On March 12, 2020, because of the 1 Staff report from 6-8-20 Council meeting: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=65824.82&BlobID=77068 2 Draft minutes from 6-8-20 Council meeting: https://www.cityofpaloalto.org/civicax/filebank/documents/77236 3 These uses would not be allowed to occur within the City until the County Health Order allows these activities to occur or these businesses to resume services. City of Palo Alto Page 3 escalating increase in cases and community spread of COVID-19 in Santa Clara County, City Manager Ed Shikada, acting as the Director of Emergency Services, issued a Proclamation of Local Emergency. The City Council ratified the issuance of the proclamation on March 16, 2020. Also, on March 16, 2020, the public health officers for the six Bay Area counties, including Santa Clara County, took the unprecedented and dramatic step of issuing “shelter-in-place” orders directing county residents to shelter at home beginning March 17 (the SIP Order). The SIP Order limited activity, travel, and business functions to only the most essential needs. The Order required all businesses other than “essential businesses,” as defined, to cease activities at facilities located in the county. Since that time, the County has updated the SIP Order, with the most recent update taking effect on June 5, 2020 at 12:01 am. This update allowed several businesses and services to resume, including outdoor dining and in-person, indoor retail sales. These services are subject to certain restrictions identified in Appendix C-1 of the updated SIP Order. On June 8, 2020, the Palo Alto City Council held a study session to discuss how the City might facilitate and enhance opportunities for outdoor dining and outdoor retail throughout the City of Palo Alto. At the meeting, Council members provided feedback to staff and broadly expressed support for the proposals put forward in the staff report. Through this report and accompanying ordinance and resolution, staff are responding to the feedback and providing legislation for the Council’s consideration and action. Discussion Proposed Ordinance The proposed ordinance is an interim urgency ordinance. The ordinance will become effective upon adoption if four-fifths (4/5) of the Council members present vote to approve the ordinance. The ordinance (Attachment A,; summarized in Attachment C) proposes the following: • Sidewalk and Street Dining – This action modifies the existing encroachment permit program by temporarily waiving fees and architectural review for sidewalk encroachment permits; these would be offered under the “Summer Streets Encroachment Permit” Program. Outdoor dining would also be allowed on closed streets with a Summer Streets Encroachment Permit. • Outdoor Retail Display and Sales Activities – Temporarily allows retailers to apply for Summer Streets Encroachment Permits to display merchandise on sidewalks and closed streets. Presently, the Palo Alto Municipal Code prohibits the display of any merchandise on public sidewalks, except flowers and plants. City of Palo Alto Page 4 • Private Parking Lots – The ordinance temporarily allows up to 50% of the parking spaces in a private parking lot to be used for a combination of outdoor retail and/or outdoor dining. The ordinance temporarily suspends parking requirements and allows, with staff review, for the conversion of the outdoor space to restaurant seating or merchandise display. The space will be reviewed by staff to ensure that pedestrian and vehicular circulation are maintained, that safety of patrons is prioritized, that accessible spaces remain, and that the retail and/or dining areas are clearly demarcated and buffered. For small parking lots, defined as lots that contain 10 or fewer spaces, up to 100% of the lot may be used for outdoor retail and/or dining. This allowance recognizes the limited dimensions of small parking lots and the challenges that may arise from trying to accommodate both vehicles while seating diners and/or spacing merchandise in a socially distanced manner. • Other Private Property Areas – The ordinance would temporarily allow the use of other outdoor areas on an eating/retail establishment’s site (i.e., landscaped areas) to be used for outdoor dining and retail. • Alcohol Consumption – The proposed ordinance allows an establishment with a valid Alcoholic Beverage Control (ABC) license for on-sale consumption of alcohol, and who possesses a valid conditional use permit (CUP) or other locally required approval, to serve alcohol for on-site consumption in any expanded outdoor seating areas, as allowed by ABC regulations and the County Health Order. If, for example, a restaurant obtained a Summer Streets Encroachment Permit to place tables and chairs in a closed portion of California Avenue, that business can serve alcoholic beverages to those customers. Prior to serving, the establishment must also obtain authorization from ABC under the “Temporary Catering Authorization” as required by ABC’s fourth order of regulatory relief. This meets the intention of the proposal brought to Council on June 8th in a more elegant way than originally proposed. On June 8, 2020, staff proposed to allow consumption of an alcoholic beverage with a meal in public and allowing expansion of the footprint with the appropriate ABC license. Upon further review of the ABC license and local code, the proposed ordinance allows consumption in public areas associated with an establishment’s expanded footprint (sidewalk dining, parklet, closed public street), while not generally authorizing public consumption Additional Ordinance Items Staff anticipate that, if the County continues to make progress on preventing and limiting the spread of COVID-19, the Shelter in Place Order may be updated as frequently as every two weeks; including updates during the Council’s summer recess. Staff anticipate that future City of Palo Alto Page 5 orders may take advantage of the region’s climate and the decreased risk of spreading COVID- 19 outdoors to allow more activities to resume, provided they take place outside. In anticipation of this, staff have included provisions in the ordinance that allow the City Manager to develop rules, guidelines, and regulations to permit certain activities. These activities were not discussed during the June 8, 2020 study session. Nevertheless, they align with Council’s objective of taking reasonable measures to ensure the survival of Palo Alto’s commercial areas. Specifically, the proposed ordinance includes the following provisions: • Allowing Dining, Retail, and Alcohol Consumption in City-Owned Public Parking Lots – Staff currently have no plans or developed program for using public parking lots for these purposes. Should, however, circumstances necessitate temporary closures of all or portions of these lots for these purposes, the City Manager would be so empowered. • Allowing Personal Services, Indoor Recreation, and Other Uses to be Permitted Outdoors – In anticipation of increasing relaxation of restrictions through updated Public Health Orders, this provision allows the City to develop a program to allow certain activities to occur outdoors in the same types of areas where outdoor dining and retail would be allowed. • Alcohol Consumption with a Meal in Downtown Plazas (Lytton, Cogswell) – This allows persons to carry meals, including alcoholic beverages, to these public areas to picnic. Should downtown be crowded, this can help visitors and patrons increase social distancing. Resolution The proposed resolution authorizes the City to temporarily and continuously close certain streets in Palo Alto and authorizes a Pilot Parklet Demonstration Project in on-street parking spaces on public streets. While the Palo Alto Municipal Code does allow the City to issue Temporary Street Closure permits for special events, the proposed closures would be for a more extended period than would typically be approved as a special event. Through this resolution, the Council enables the City to implement street closures on California Avenue, University Avenue, and intersecting streets. The closures can last up through Labor Day (September 7, 2020). While the closures need not endure 24 hours a day from now until Labor Day, the resolution provides the flexibility to close these streets during that time frame to host “Summer Streets.” Restaurants and other retailers can, with the appropriate permit, place tables, chairs, merchandise, and associated objects in the closed streets. Working closely with merchants, staff will prepare for, execute, evaluate, and enhance any street closure programs. Through street closures, Palo Alto can help facilitate economic activity in a manner that allows downtown patrons to remain a safer distance from one another. Beginning Thursday, June 11, 2020, the City closed California Avenue from El Camino Real to City of Palo Alto Page 6 Birch Street to traffic. Restaurants with Summer Street Encroachment Permits placed tables, chairs, and umbrellas in the street and served patrons. The closure, scheduled to last through July 6, 2020 under the temporary street closure permit, has been well-received thus far. The City continues to collaborate with restaurants and retailers monitor the success of the program and make adjustments and enhancements. The resolution will allow the closure to continue after July 6, possibly through Labor Day. Similarly, the City continues to engage downtown stakeholders in conversation regarding piloting street closures in downtown Palo Alto. By adoption of the resolution the Council would approve implementation of the Pilot Parklet Demonstration Project. A parklet is a seating area constructed in one or more on-street public parking spaces. Parklets can improve the pedestrian environment and allow people to use public space. In response to the COVID-19 pandemic, parklets can provide areas for outdoor dining in an environment where patrons may be less likely to spread or contract COVID-19. Through the Pilot Parklet Demonstration Project, the City Council allows eligible businesses, which include eating and drinking establishments (e.g. restaurant, wine bar), as well as food- based retail (e.g. coffee shop, ice cream parlor), to apply for a Summer Streets Encroachment Permit to install a parklet.4 The parklets are temporary, with the permit expiring on December 31, 2020 or when the local emergency expires, whichever occurs latest. Upon expiration or termination of the permit, the parklet must be removed at the expense of the permit holder. Exhibit A of the resolution contains standards and requirements for the parklets. The Director of Public Works and his or her staff will ensure that parklets are proposed in conformance with the rules and installed properly. Any deviation from the proposed standards will be considered by City staff on a case-by-case basis, which may require field visits and submission of additional materials. The proposed resolution and standards have been developed upon consideration of two parklet prototypes installed in downtown Palo Alto. One prototype is located on University Avenue and the other on Emerson Street. These prototypes, permitted by the Department of Public Works, provided insight into the challenges and opportunities parklets present. Staff propose the standards and other requirements to address the challenges, take advantage of opportunities, and provide applicants with clarity regarding what is required to successfully plan for, install, and operate parklets. Additionally, the City, with the assistance of a professional architect, is developing two plans for parklets: a plan for angle parking spaces and a plan for parallel parking spaces. These plans should enable a permit holder to easily select the appropriate plan, for a contractor to dimension the plans for the parking spaces immediately adjacent to their storefront and allow 4 All activities taking place in parklets, such as eating, drinking, serving alcohol, will occur only if and when Santa Clara County allows those activities to occur. City of Palo Alto Page 7 the plans to be approved more efficiently by the Department of Public Works. Policy Implications The proposed ordinance and resolution aim to support the business districts and businesses of Palo Alto. Supporting the businesses ensures Palo Altans can meet their daily needs locally and that Palo Alto remains a vibrant community of choice with a high quality of life. Ensuring that businesses survive the pandemic also supports the local tax base that provides revenues that support local services and infrastructure. The ordinance and resolution present a number of policy issues that, were the ordinance or resolution permanent, would warrant more prolonged discussion and deliberation before being considered. In essence, though, the ordinance and resolution allow lawfully and routinely permitted activities to be conducted outdoors instead of indoors; in that way these are not radical departures from local norms regarding acceptable activities and businesses. It is the truly extraordinary and unprecedented times that Palo Alto is confronting which require activities to move outside to be conducted more safely. The duration of these programs provides time for the City Council to observe the impacts of these choices, to amend or adjust the programs, to extend them, or to allow them to expire as prescribed. The ordinance and resolution also provide flexibility for staff to make adjustments to the programs within the overall framework Council enables. Staff hope that through these measures the City can accommodate future updates to the Shelter in Place Order. Resource Impact The implementation of the ordinance and resolution requires review of permits by staff, inspection of sites, inspection of construction, outreach and communication by staff, closure of streets, and monitoring of outcomes, among other tasks. The City can absorb these activites within the existing budget. Through waiving the fees, the City is forgoing $2,226 in FY 2021 per each encroachment permit.5 These fees compensate the City for the staff time required to review and issue encroachment permits. Additionally, the City typically charges $25 per day for a Parking Space Closure to occupy a public parking space. The City will forgoe this revenue and absorb these costs. Timeline The ordinance and resolution require different voting majorities to pass. If passed by a four- fifths (4/5) majority of City Council members present at the meeting, the interim urgency ordinance goes into effect immediately. There will not be a second reading of the ordinance. If passed by a majority of City Council members, the resolution goes into effect immediately. The proposed temporary provisions in both the ordinance and the resolution will expire at the end 5 The FY 2020 fee for an encroachment permit is $2,177. City of Palo Alto Page 8 of calendar year 2020 (December 31, 2020) or at the conclusion of the local proclamation of emergency, whichever is later. Stakeholder Engagement The ordinance and resolution reflect immense collaboration between the City, local businesses, and the community at large. Business owners and managers have engaged with City staff through roundtable discussions, phone calls, e-mail correspondence, and via face-to-face visits by staff walking door-to-door. Surveys from partner organizations such as the Chamber of Commerce have also provided valuable insight into how the City can best collaborate with local businesses. Hundreds of community members have written to the City Council and provided public comment regarding these ideas, particularly street closures. As the programs cotinue and applications for Summer Streets Encroachment Permits and other permits increase, staff will continue to collaborate with applicants. Through our combined effort we hope to realized postive outcomes for businesses, visitors, and residents. Environmental Review (If Applicable) The proposed actions are statutorily exempt under California Environmental Quality Act (CEQA) section 20180(b)(4) (specific actions necessary to prevent or mitigate an emergency) and are categorically exempt from CEQA under CEQA Guidelines 15301 (existing facilities) and 15304(e) (minor temporary use of land having negligible or no permanent effects on the environment). Attachments: Attachment A - Interim Urgency Ordinance Attachment B - Resolution Attachment C - Summary of Legislative Actions NOT YET ADOPTED 2020061702 1 Ordinance No. _____ Interim Ordinance of the Council of the City of Palo Alto Temporarily Allowing Expansion of Outdoor Dining, Retail and Other Activities on Public and Private Property and Relaxing Regulations Regarding Onsite Parking, On-Sale of Alcohol, Design/Architectural Review, Permit Fees, and Alcohol Consumption in Public Places, All to Facilitate Such Outdoor Use During the COVID-19 State of Emergency, and Declaring the Ordinance to be an Emergency Measure to Take Effect Immediately Upon Adoption The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A. On March 4, 2020, California Governor Gavin Newsom declared a State of Emergency due to the threat of the novel coronavirus disease 2019 (“COVID-19”). B. On March 12, 2020, due to the escalating local and regional increase in cases and community spread of COVID-19, City Manager Ed Shikada, acting as the Director of Emergency Services, issued a Proclamation of Local Emergency. The City Council ratified the issuance of the proclamation on March 16, 2020. C. On March 16, 2020, March 31, 2020, and April 29, 2020, the Santa Clara County Health Officer issued orders directing all individuals living in the County to continue to shelter in their place of residence subject to certain exceptions. The original and subsequent orders limited activity, travel, and business functions to only the most essential needs, and required all businesses other than “essential businesses”, as defined, to cease activities at facilities located in the County, impacting the revenue and economic stability of many Palo Alto businesses. D. The directives from the State and the County necessary to contain the spread of COVID-19 have drastically affected the local economy and resulted in serious negative impacts to local businesses, including substantial loss of business income and compensable work hours and wages for individual workers. E. On June 1, 2020, the Santa Clara County Health Officer issued an order effective June 5, 2020 authorizing outdoor dining at restaurants and in-store retail, with the implementation of and adherence to specified public health protocols. F. The State, through the California Department of Public Health and Cal OSHA, has issued COVID-19 Industry Guidance: Dine-In Restaurants, which prioritizes outdoor seating and curbside pick-up to minimize the cross-flow of air for people in enclosed environments. G. Many businesses have already closed permanently, and others are barely surviving. Vibrant commercial centers are essential to Palo Alto. These businesses themselves are an essential part of the community: they provide jobs for Palo Alto workers, provide goods and services to residents and the larger community; they are part of the backbone to the fiscal health of individuals, the city, county and the region. NOT YET ADOPTED 2020061702 2 H. It is vital to create opportunities to help our community rebuild and emerge, to resume some aspects of daily life, to the extent feasible and consistent with health and safety, during this continuing public health emergency. Temporary measures to reduce regulatory requirements and facilitate business activity in outdoor areas will provide critical assistance to businesses to allow them to reopen and help mitigate the potential public health impacts of reopening. I. Epidemiologists have warned that COVID-19 may be present in our communities for many months or even years, requiring ongoing adjustments to daily life and economic activity. The need for physical distancing will likely persist into 2021, and possibly beyond that. J. An urgency ordinance that is effective immediately is necessary to address the immediate threat to public peace, health, safety and welfare of residents, workers and local businesses related to the significant economic impacts of the COVID-19 pandemic, to support businesses to be successful in their reopening in compliance with public health criteria, and to support compliance with public health orders and criteria related to COVID-19 to mitigate the spread of COVID-19 in Palo Alto and the broader community. K. Under Palo Alto Municipal Code Section 2.04.270(d), a four-fifths of the Council members present is required to pass this Ordinance. SECTION 2. City Manager Authorization The City Manager is hereby authorized to use his or her authority as Director of Emergency Services under Palo Alto Municipal Code (“PAMC”) Section 2.12.060 to make and issue rules and regulations on matters reasonably related to the protection of life and property as affected by the Emergency for the expanded operation of outdoor eating areas by eating, drinking and retail establishments (sometimes referred to as “outdoor dining”) and outdoor retail sales and display of wares, as described at the City Council meetings on June 8, 2020 and June 23, 2020, not in conflict with this Ordinance. This authorization includes the authority vested in the City Manager or his or her designee(s) to promulgate guidelines and implementing regulations for the uses and programs described in this Ordinance. SECTION 3. Fee Waivers for Encroachment Permits and Parking Space Closures A. The permit fees set forth in the Municipal Fee Schedule are temporarily waived for applications for encroachment permits under Palo Alto Municipal Code Section 12.12.010 and Section 12.12.020, as modified by this Ordinance, to place structures and equipment in the public right-of-way (including closed streets and sidewalks) for purposes of outdoor dining and outdoor retail sales and display of wares. B. The parking space closure fee in the Municipal Fee Schedule collected by the Department of Planning and Development Services is temporarily waived for the use of a parking space(s) on-street or in a parking lot for purposes of outdoor dining and NOT YET ADOPTED 2020061702 3 outdoor retail sales and display of wares as authorized through an encroachment permit, license, or agreement with the City. SECTION 4. Modified Review Process for Commercial Sidewalk Encroachment Permits Notwithstanding contrary provisions of PAMC Section 12.12.020, permits may be granted for commercial sidewalk encroachments for outdoor retail sales and display areas and outdoor eating areas. Permits for these purposes shall not be required to undergo and complete design review by the Planning Department described in subsection (d) of Section 12.12.020. Except as expressly modified herein, the provisions of Section 12.12.020 shall apply to commercial sidewalk encroachments. SECTION 5. Eating and Drinking Establishments Eating establishments, and drinking establishments when allowed by the County Health Order to operate outdoors, may temporarily relocate some or all of their existing indoor seating capacity to outdoor seating capacity, as follows: A. Location. Outdoor eating areas may be placed in one or more of the following areas: 1. Public streets temporarily closed by the City of Palo Alto, through issuance of an encroachment permit under PAMC Section 12.12.010; 2. Sidewalks through issuance of an encroachment permit under PAMC Section 12.12.020, as modified by Section 4 of this Ordinance; 3. In on-street parking spaces approved for use as temporary parklets, in accordance with the Pilot Parklet Demonstration Project approved by Council Resolution No. _________; 4. Surface parking lots that currently provide required onsite parking for the eating/drinking establishment, through issuance of an approval by the Director of Planning, or his or her designee, as described in subsections C and D of this Section, below; 5. Other outdoor areas on the eating/drinking establishment site not originally permitted for outdoor seating in the establishment’s approved site plan or planning entitlement (such as landscaped areas), through issuance of an approval by the Director of Planning, or his or her designee, in accordance with subsections C and D of this Section, below; and 6. In other areas that the Council identifies by resolution or ordinance. NOT YET ADOPTED 2020061702 4 B. Use of Private Parking Lots – Temporary Reduction of Parking Requirements. 1. Notwithstanding the parking requirements applicable to eating/drinking establishments in Title 18 (Zoning) of the PAMC or in individual planning entitlements or approvals for eating/drinking establishments, an eating/drinking establishment may place outdoor eating areas in its parking lot, so long as at least half of the parking spaces on the subject site remain available for use by vehicles. If the establishment’s parking lot has ten or fewer parking spaces, up to 100 percent of the parking lot may be used for outdoor eating, subject to review and approval of the Planning Director or his or her designee. 2. Notwithstanding the parking requirements applicable to shopping centers and their tenant businesses in Title 18 (Zoning) of the PAMC or in individual planning entitlements or approvals for shopping centers or their tenant businesses, a shopping center with an eating/drinking establishment tenant(s) may place outdoor eating areas for such tenant business(es) in the shopping center parking lot, so long as at least half of the parking spaces on the subject site remain available for use by vehicles. C. Application. An application in a form approved by the Director of Planning shall be submitted to the Planning and Development Services Department to relocate some or all of an eating/drinking establishment’s permitted indoor restaurant seating to outdoor seating in privately-owned areas on the eating/drinking establishment site not originally permitted for outdoor eating. The Director of Planning is authorized to establish submittal requirements and procedures. Temporary Use Permits (TUP) under PAMC Section 18.42.050 may be utilized for this purpose. A TUP issued for this purpose may be valid for a specified period longer than 45 days, notwithstanding subsection (d) of Section 18.42.050. The Planning Director may extend a TUP issued prior to the effective date of this Ordinance to be valid beyond 45 days. D. Seating Layout Review. A Seating Layout Review is required to relocate some or all of an eating/drinking establishment’s permitted indoor seating to outdoor seating in privately-owned areas on the eating/drinking establishment site not originally permitted for outdoor eating. The Seating Layout Review shall be conducted by a transportation planner, planner, and/or fire inspector who will review and either approve or require modifications to the proposed outdoor seating layout based on the following criteria: 1. Seating layout does not create a safety risk and adequate pedestrian and vehicular separation is maintained, including with movable barriers as appropriate where outdoor seating is to be placed in parking lots or on-street parking spaces. 2. Seating layout accommodates appropriate vehicle and pedestrian circulation and maintains adequate paths of travel and complies with accessibility requirements of the Americans with Disabilities Act. NOT YET ADOPTED 2020061702 5 3. Any tents must comply with fire codes and Palo Alto Fire Department issued standards for tents, and safety standards set forth by the National Fire Protection Association for fire-resistant tents and must include an affixed manufacturer’s label stating the tent meets NFPA requirements. A State Fire Marshal seal on the tent or a certificate is needed to prove treatment. 4. Any heaters must comply with fire codes. 5. An adequate and visible barrier is placed that clearly separates the retail area from the parking area and provides sufficient protection for patrons. Adequacy shall be defined in standards and guidelines issued by the Director of Planning. 6. Other requirements established in the standards and guidelines issued by the Director of Planning. E. Fee. No fee will be charged for submittal and review of the Application and for conducting a Seating Layout Review . F. Occupancy. Total seating occupancy (including all indoor and outdoor seating) shall not exceed the overall occupancy for which the restaurant is permitted. G. Alcohol Service. Establishments that are allowed by the City to serve alcohol for onsite consumption by issuance of a conditional use permit (“CUP”) as required by PAMC Section 18.42.090 or as a legal nonconforming use, and that both have an on-sale license from the Department of Alcoholic Beverage Control (“ABC”) and are duly authorized by ABC to serve alcohol in outdoor areas, shall be allowed to serve alcohol for onsite consumption in such outdoor areas, notwithstanding any prohibition on outdoor alcohol service or consumption in the PAMC or planning entitlement issued under Title 18 (Zoning) of the PAMC. During the effective period of this Ordinance, establishments that meet the preceding requirements may expand their footprint to outdoor areas without an amendment of the CUP, notwithstanding PAMC Section 18.42.090(c). Outdoor alcohol service shall be in full compliance with ABC regulations, as amended. H. No Architectural Review. Notwithstanding PAMC Sections 18.77.077 and 18.76.020, architectural review shall not be required for proposed outdoor eating areas or signage related to such areas during the effective period of this Ordinance. SECTION 6. Retail Establishments Retail establishments may temporarily relocate some or all of their existing customer-accessible square footage to outdoor spaces as follows: A. Location. Outdoor retail sales and display areas and outdoor eating areas may be placed in one or more of the following areas: NOT YET ADOPTED 2020061702 6 1. Public streets temporarily closed by the City of Palo Alto, through issuance of an encroachment permit under PAMC Section 12.12.010; 2. Sidewalks through issuance of an encroachment permit under PAMC Section 12.12.020, as modified by Section 4 of this Ordinance; 3. Surface parking lots that currently provide required onsite parking for the retail establishment, through issuance of an approval by the Director of Planning, or his or her designee, as described in subsections C and D of this Section, below; 4. Other outdoor areas on the retail establishment site not originally permitted for retail sales and display or dining in the retail establishment’s approved site plan or planning entitlement (such as landscaped areas), through issuance of an approval by the Director of Planning or his or her designee in accordance with subsections C and D of this Section, below; and 5. In other areas that the Council identifies by resolution or ordinance. B. Use of Private Parking Lots – Temporary Reduction of Parking Requirements. 1. Notwithstanding the parking requirements applicable to retail establishments in Title 18 (Zoning) of the PAMC or in individual planning entitlements or approvals for retail establishments, a retail establishment may conduct outdoor retail sales and display and may place outdoor eating areas in its parking lot, so long as at least half of the parking spaces on the subject site remain available for use by vehicles. If the establishment’s parking lot has ten or fewer parking spaces, up to 100 percent of the parking lot may be used for outdoor eating, subject to review and approval of the Planning Director or his or her designee. 2. Notwithstanding the parking requirements applicable to shopping centers and their tenant businesses in Title 18 (Zoning) of the PAMC or in individual planning entitlements or approvals for shopping centers or their tenant businesses, a shopping center with a retail establishment tenant(s) may place outdoor retail sales and display areas and outdoor eating areas for such tenant business(es) in the shopping center parking lot, so long as at least half of the parking spaces on the subject site remain available for use by vehicles. C. Application. An application in a form approved by the Director of Planning shall be submitted to the Planning and Development Services Department to relocate some or all of a retail establishment’s customer-accessible square footage to outdoor retail sales and display in privately-owned areas on the retail establishment site not originally permitted for outdoor retail sales and display. The Director of Planning is authorized to establish submittal requirements and procedures. Temporary Use Permits (TUP) under PAMC Section 18.42.050 may be utilized for this purpose. A TUP issued for this purpose may be valid for a specified period longer than 45 days, notwithstanding subsection (d) of Section 18.42.050. The Planning Director may extend a TUP issued prior to the effective date of this Ordinance to be valid beyond 45 days. NOT YET ADOPTED 2020061702 7 D. Merchandise or Seating Layout Review. A Layout Review is required to relocate some or all of an retail establishment’s permitted indoor customer-accessible square footage to privately-owned areas on the retail establishment site not originally permitted for retail. The Layout Review shall be conducted by a transportation planner, planner, and/or fire inspector who will review and either approve or require modifications to the proposed retail layout based on the following criteria: 1. The placement of the merchandise, displays, or other items does not create a safety risk and adequate pedestrian and vehicular separation is maintained, including with movable barriers as appropriate where outdoor seating is to be placed in parking lots or on-street parking spaces. 2. The layout accommodates appropriate vehicle and pedestrian circulation and maintains adequate paths of travel and complies with accessibility requirements of the Americans with Disabilities Act. 3. Any tents must comply with fire codes and Palo Alto Fire Department issued standards for tents, and safety standards set forth by the National Fire Protection Association for fire-resistant tents and must include an affixed manufacturer’s label stating the tent meets NFPA requirements. A State Fire Marshal seal on the tent or a certificate is needed to prove treatment. 4. Any heaters must comply with fire codes. 5. An adequate and visible barrier is placed that clearly separates the retail area from the parking area and provides sufficient protection for patrons. Adequacy shall be defined in standards and guidelines issued by the Director of Planning. 6. Other requirements established in the standards and guidelines issued by the Director of Planning. E. Fee. No fee will be charged for submittal and review of the Application and for conducting a Layout Review. F. No Architectural Review. Notwithstanding PAMC Sections 18.77.077 and 18.76.020, architectural review shall not be required for proposed outdoor retail areas or signage related to such areas during the effective period of this Ordinance. NOT YET ADOPTED 2020061702 8 SECTION 7. Compliance with Other Regulations, Orders and Approvals The outdoor uses of public and private property allowed in this Ordinance shall be conducted in compliance with the Order of the Health Officer of the County of Santa Clara in effect (“County Health Order”), this Ordinance, Resolution No. ______, and all other local and state regulations, orders, and approvals, as applicable (collectively, “Applicable Law”). Any approval, allowance or permit to conduct such temporary outdoor use(s) shall be subject to revocation by the issuing City official if the use is conducted in violation of Applicable Law, or poses a threat to public health, safety or welfare. SECTION 8. No Vested Rights The outdoor uses of public and private property allowed in this Ordinance are temporary and shall be terminated upon the earlier of the date stated in the applicable permit/approval or the expiration of this interim Ordinance, unless earlier revoked by the City Manager or other authorized official (or their designee) or terminated by action of the City Council. The City may discontinue one or more, or all, of the allowed outdoor uses at any time if the City Manager or designee determines that the public health, safety or welfare warrant such action. Nothing in this Ordinance shall establish a vested right. SECTION 9. Suspension of Prohibition on Alcohol Consumption in Lytton Plaza and Cogswell Plaza Notwithstanding PAMC Sections 22.04.330 and 22.04.331, the City Manager is authorized to suspend the prohibition on consumption of alcoholic beverages in Lytton Plaza and Cogswell Plaza, and adjacent City surface parking lots. SECTION 10. Use of City Parking Lots for Reopening Activities A. The City Manager, or his or her designee (“City Manager”), is authorized to permit outdoor dining, retail and other activities as allowed by the County Health Order and reasonably necessary to facilitate the reopening of businesses, in public parking lots owned by the City, subject to the City Manager’s adoption of rules, regulations, guidelines, and standards for such use (“Regulations”), and publication of such Regulations on the City’s website. Use of parking lots, or portions thereof, by a business shall require a license or other agreement, including an agreement to indemnify and hold harmless the City, and provision of insurance. B. The City Manager is authorized to waive any fee in the Municipal Fee Schedule associated with the temporary use of parking areas for the purposes identified in Section A above. C. Notwithstanding PAMC Section 9.04.020, the City Manager is authorized to suspend the prohibition on consumption of alcoholic beverages in any City owned parking lot. NOT YET ADOPTED 2020061702 9 SECTION 11. Personal Services, Indoor Recreation and Other Uses When allowed by the County Health Order, the authorized outdoor uses of public and private spaces authorized in this Ordinance may be applied to personal services, indoor recreation and other uses. Prior to authorizing these additional activities to occur, the City Manager, or his or her designee (“City Manager”), shall adopt rules, regulations, guidelines, and standards for these uses, and publish them on the City’s website. SECTION 12. Severability If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 13. Environmental Review The Council finds that the Ordinance is statutorily exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 20180(b)(4) (specific actions necessary to mitigate or prevent an emergency) and is categorically exempt from CEQA under CEQA Guidelines Sections 15301 (existing facilities) and 15304(e) (minor temporary use of land having negligible or no permanent effects on the environment). SECTION 14. Effective Date This Ordinance shall be effective immediately upon adoption by at least four-fifths vote of the City Council members present, pursuant to subsection (a)(4) of Palo Alto Municipal Code Section 2.04.330, and shall remain in effect for the duration of the Local Emergency or until December 31, 2020, whichever is later, unless earlier modified, repealed or extended by the City Council. SECTION 15. Uncodified This Ordinance shall not be codified. // // // // NOT YET ADOPTED 2020061702 10 SECTION 16. Emergency Declaration The Council declares this Ordinance to be an emergency measure, to take effect immediately upon adoption pursuant to Palo Alto Municipal Code Section 2.04.270(d). The facts constituting the emergency are stated in Section 1 of this Ordinance. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Attorney City Manager ____________________________ Director of Public Works ____________________________ Director of Planning & Development Services NOT YET ADOPTED 2020061701 1 Resolution No. Resolution of the Council of the City of Palo Alto Temporarily Closing Portions of California Avenue and University Avenue and Certain Downtown Streets Intersecting University Avenue Pursuant to California Vehicle Code Section 21101, and Approving a Pilot Parklet Demonstration Program Including Parklet Standards and Requirements, All Pursuant to the Local Emergency Declaration to Facilitate Outdoor Dining and Retail R E C I T A L S A. On March 12, 2020, City Manager Ed Shikada, acting as the Director of Emergency Services, issued a Proclamation of Local Emergency due to the risks and community spread of the novel coronavirus disease 2019 (“COVID-19”). The City Council ratified the issuance of the proclamation on March 16, 2020. B. On March 16, 2020, March 31, 2020, and April 29, 2020, the Santa Clara County Health Officer issued orders directing all individuals living in the County to continue to shelter in their place of residence subject to certain exceptions. The original and subsequent orders limited activity, travel, and business functions to only the most essential needs, and required all businesses other than “essential businesses”, as defined, to cease activities at facilities located in the County, impacting the revenue and economic stability of many Palo Alto businesses. C. The directives from the State and the County necessary to contain the spread of COVID-19 have drastically affected the local economy and resulted in serious negative impacts to local businesses, including substantial loss of business income and compensable work hours and wages for individual workers. D. On June 1, 2020, the Santa Clara County Health Officer issued an order effective June 5, 2020 authorizing outdoor dining at restaurants and in-store retail, with the implementation of and adherence to specified public health protocols. E. The State, through the California Department of Public Health and Cal OSHA, has issued COVID-19 Industry Guidance: Dine-In Restaurants, which prioritizes outdoor seating and curbside pick-up to minimize the cross-flow of air for people in enclosed environments. F. Many businesses have already permanently closed, and others are barely surviving. Vibrant commercial centers are essential to Palo Alto. These businesses themselves are an essential part of the community: they provide jobs for Palo Alto workers, provide goods and services to residents and the larger community; they are part of the backbone to the fiscal health of individuals, the city, county and the region. NOT YET ADOPTED 2020061701 2 G. It is vital to create opportunities to help our community rebuild and emerge, to resume some aspects of daily life to the extent feasible and consistent with health and safety, during this continuing public health emergency. Temporary measures and relaxation of regulations to facilitate business activity in outdoor public areas will provide critical assistance to businesses to allow them to reopen and help mitigate the potential public health impacts of reopening. H. California Vehicle Code Section 21101 permits local authorities, by resolution or ordinance, to temporarily close a portion of any street for celebrations, parades, local special events, or other purposes when the closing is necessary for the safety and protection of persons who are to use that portion of the street during the temporary closing. I. Government Code Section 8634 provides that “during a local emergency, the governing body of a political subdivision, or officials designated thereby, may promulgate orders and regulations necessary to provide for the protection of life and property,” and that such orders “shall be in writing and shall be given widespread publicity and notice.” J. On June 11, 2020, the City of Palo Alto temporarily closed portions of California Avenue to vehicles by a street closure permit, issued under the Temporary Street Closure Ordinance (Palo Alto Municipal Code Chapter 10.10) in order to facilitate outdoor dining and retail. The Council desires to extend that closure through September 7, 2020, and in addition temporarily close portions of University Avenue and certain intersecting streets Downtown for the same period. K. The Council desires to further expand opportunities for outdoor restaurant dining through a demonstration pilot project allowing parklets to be placed in spaces currently used for on-street parking on a temporary basis while dining in commercial establishments is prohibited or limited due to COVID-19. L. This Ordinance allowing outdoor dining and outdoor retail on public streets for a temporary period at this critical time furthers public safety, health and welfare, and is necessary to the protection of life and property as affected by the COVID-19 emergency. NOW THEREFORE THE CITY COUNCIL OF THE CITY OF PALO ALTO RESOLVES AS FOLLOWS: SECTION 1. Findings and Declarations. The Council hereby adopts the above Recitals as findings of the Council. NOT YET ADOPTED 2020061701 3 SECTION 2. Temporary Street Closures. A. The following streets are hereby closed to any and all vehicular traffic through September 7, 2020, in accordance with California Vehicle Code Section 21101(e), to facilitate the temporary uses of outdoor dining and retail: 1. California Avenue from Birch Street to El Camino Real. 2. University Avenue from Emerson Street to Cowper Street, with continued vehicular access across University Avenue at each of the intersecting streets. B. The City Manager is authorized to determine the days, hours and duration of the temporary street closure(s) within the period specified in Section A, with reasonable notice provided, and whether exceptions to the closure shall be made for municipal purposes. SECTION 3. Additional Closures. The City Manager is authorized in his or her capacity as the Director of Emergency Services to extend the University Avenue closure to temporarily close the streets intersecting University Avenue in the Downtown area, from Emerson Street to Cowper Street, by issuance of an order, rule or regulation if the City Manager finds it is reasonably related to the protection of life and property as affected by the Local Emergency. These side street closures shall only extend for one block from University Avenue, between University Avenue and Lytton Avenue to the north and between University Avenue and Hamilton Avenue to the south, and shall be in effect no longer than the period of the University Avenue closure. SECTION 4. Pilot Parklet Program and Design Requirements. The City Council hereby approves the temporary use of on-street parking spaces in Palo Alto for parklets under the Pilot Parklet Demonstration Program as described in the City Manager’s Report for the June 23, 2020 Council meeting, and approves the Parklet Standards and Requirements attached as Exhibit A to this Resolution. A. The Director of Public Works/City Engineer, or his or her designee (the “Director”), is delegated the authority to exercise their discretion to approve specific parklet locations, plans, designs, materials, and standards, and amendments thereto, consistent with the Parklet Standards and Requirements. The plans and designs shall be signed by the Director. B. The Director is authorized to issue implementing guidelines and regulations for the Pilot Parklet Demonstration Program, and to approve NOT YET ADOPTED 2020061701 4 amendments to the Parklet Standards and Requirements as the Director in his or her discretion deems necessary and proper. C. The Director may approve a parklet application through issuance of an Encroachment Permit, subject to the general regulations in Palo Alto Municipal Code Section 12.12.010 and the following criteria and procedures: 1. Use. Parklets shall be restricted to outdoor eating areas of eating establishments. 2. Application and Review. A complete application for a parklet encroachment permit shall be reviewed by City staff for a determination as to whether such application complies with the Parklet Standards and Requirements. The application shall include all information necessary for a determination on the application including, but not limited to a certificate of insurance and a hold harmless and indemnity agreement in favor of the City shall be submitted in accordance with the provisions of Palo Alto Municipal Code Section 12.08.120. The Director shall grant or deny the application. 3. Conditions. Conditions of approval may be imposed on parklet encroachment permits to maintain the public health, safety and welfare. 4. Revocation. The Director may revoke a parklet encroachment permit if he or she determines that the conditions of the permit, the provisions of this Ordinance, or any applicable regulation or provision of the Municipal Code are being violated, or if the municipal use of the area is required for reasons of public health, safety, welfare or convenience. The permittee shall be notified of an intent to revoke the permit and shall be entitled to a hearing before the Director whose decision shall be final. SECTION 5. The City Manager is authorized to enact any rule or regulation or implementing guidelines to effectuate the temporary street closures and implement the outdoor dining and retail program on the closed streets. // // // NOT YET ADOPTED 2020061701 5 SECTION 6. The Council finds that this Resolution is statutorily exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 20180(b)(4) (specific actions necessary to mitigate or prevent an emergency) and is categorically exempt from CEQA under CEQA Guidelines Sections 15301 (existing facilities) and 15304(e) (minor temporary use of land having negligible or no permanent effects on the environment). SECTION 7. This Resolution shall become effective immediately upon adoption and will remain in effect until December 31, 2020, unless extended by the City Council. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ _____________________________ Assistant City Attorney City Manager _____________________________ Director of Public Works _____________________________ Chief Transportation Official Exhibit A 1 City of Palo Alto Summer Streets Parklet Encroachment Permit Parklet Standards & Requirements Overall Information for Temporary Parklet Program •What is a Parklet? A parklet is a seating area constructed in one or more public, on-street parking spaces. •Eligible Parklet Applicant: A properly entitled and operating eating and drinking establishment, including retail food establishments such as cafes, ice cream parlors, etc., is eligible to apply for a “Summer Streets Encroachment Permit” (Permit) to construct a parklet in public parking spaces on public streets owned and maintained by the City of Palo Alto. •Eligible Parklet Area: An eligible applicant can propose to construct a parklet in parallel or angle parking space(s) that are immediately adjacent to the frontage of the eating establishment. o The City has discretion to determine the allowable density of parklets in a given area. Every eligible area may not be approved for a parklet. The City will balance the needs of an applicant, neighboring establishments, parking and traffic considerations, among other public needs. •Permitting: Any applicant seeking to install a parklet in a public parking space in the City of Palo Alto must apply for and receive a valid “Summer Streets Encroachment Permit” before beginning construction of the parklet. The permit application will be reviewed by the Department of Public Works and other relevant City departments, prior to approval. o The Department of Public Works shall be an applicant’s primary point of contact. o Construction of a parklet cannot begin until a permit application has been approved. o Prior to serving patrons and otherwise operating the parklet, the parklet must be inspected by the Department of Publics Works and approved for use. o An eligible establishment with a valid Summer Streets Encroachment Permit is eligible to construct and operate a parklet subject to the standards and requirements contained in this document, applicable sections of the Palo Alto Municipal Code, other documents associated by reference, and other documents declared relevant by the Director of Public Works and his or her designee. •Sidewalk Dining: An eligible establishment seeking to place tables and chairs for dining on public sidewalks must also obtain a Summer Streets Sidewalk Encroachment Permit. An eligible establishment may have both a Summer Streets Sidewalk Encroachment Permit and a Summer Streets Parklet Encroachment Permit. •Temporary Nature of Permit: Once issued, a valid “Summer Streets Encroachment Permit” expires on December 31, 2020. All parklet materials are required to be removed at the permit holder’s expense by December 31, 2020. o This deadline notwithstanding, the Summer Streets Encroachment Permit can be revoked by the City at any time. Exhibit A 2 Parklet Standards • An applicant seeking to deviate from the following standards and requirements may need to submit additional materials, may be subject to additional inspections, and may be approved for installation only upon additional review. • If an applicant’s site or proposed parklet design deviates from the conditions and/or design expressed in this document, the proposal will be reviewed and considered. Such review and consideration may require additional time, including a site visit to observe the conditions at the site of the proposed parklet. Design and Siting Standards: 1. Parklet Area a. A parklet may be installed in on-street parallel parking spaces or on-street angle parking spaces. Dimensional requirements for parallel and angle parking spaces differ per the standards below. b. Parallel Parking Spaces i. It is recommended, though not required, that a parklet consist of at least two contiguous parallel parking spaces. ii. A parklet’s outer edge shall be 2 feet back from the outer edge of the existing parking space. For all parallel parking spaces located on public streets within the City of Palo Alto, this shall be 2 feet from the exterior edge (closest to traffic) of marked parking T’s. This is shown in Figure A. iii. These 2 feet shall be kept clear at all times. The only objects which shall lawfully occupy this space are reflective delineator posts, or their equal. Figure A: Dimensions of a Parklet in a Parallel Parking Space Exhibit A 3 iv. Parallel parking spaces typically measure 8 feet wide by 20 feet long. Given the above mentioned 2 feet offset from the outer edge of the parking space, and the 4 foot setbacks creating buffer space for wheel stops (if no tree wells are present on the adjacent areas), the dimensions of a parklet in one space would be 6 feet wide x 12 feet long. (Figure A) v. Parallel parking space measurements may vary across the City of Palo Alto. As a result of this variation, some parklets may measure less than 6 feet wide. vi. Variations notwithstanding, in no case shall a parklet be placed within the 2-foot area measured from the outer edge of the parking space. c. Angle Parking Spaces i. It is recommended, though not required, that a parklet consist of at least two contiguous angle parking spaces. ii. A parklet’s outer edge shall be 2 feet back from the outer edge of the existing angle parking space. For angle parking spaces located on public streets within the City of Palo Alto, this shall be 2 feet from the exterior edge (closest to traffic) of the marked parking stall. This is shown in Figure B. Figure B: Angle Parking Space Parklet Dimensions d. Non-Standard Angle Parking Spaces i. A parklet proposed in angle parking spaces that do not meet the City of Palo Alto’s standard depth for angle parking spaces may only be eligible for parallel parking space parklets. Office of Transportation staff, in partnership with Public Works, will review plans for such sites; this may include a site visit. The additional review will help maximize the parklet while maintaining an adequate travel lane. ii. This applies to all angle parking spaces along University Avenue. 2. Setbacks Adjacent to Active Parking Spaces a. All parklets are required to include 4-foot setbacks from adjacent on-street parking spaces and driveways. b. This setback shall be delineated by a concrete wheel stop. Exhibit A 4 c. The 4-foot setback shall contain a planter if the required wheel stop(s) is/are glued to the roadway (see section regarding safety devices). The planter should be at least 700 pounds when filled with soil or decorative material. d. The 4-foot setback may contain a planter if the required wheel stop(s) are drilled into the roadway. e. The setback may not contain seating or any other objects. 3. Planters & Plants a. Planters in setbacks shall measure as low as 30 inches and high as 36 inches in height. b. Required planters (required for glued down wheel stops) the planters should be 700 pounds, made of light weight material such as fiberglass/plastic/steel or wood. c. The height of any plants contained within planters in setback or planters serving as a parklet platform enclosure shall not exceed 6". d. Plant material shall not impede or hinder pedestrian and vehicular visibility. e. No plants shall have thorns, spikes, or sharp edges. Poisonous or invasive plants are not permitted. 4. Safety devices a. Wheel Stops i. When a parklet is adjacent to active parallel parking spaces, a three-foot wheel stop must be installed. The wheel stop shall measure 3 feet long by 4 inches high. It shall be constructed of concrete or rubber. ii. Affixing Wheel Stops 1. Drilled-in Wheel stops: A permittee will need USA clearance to anchor a wheel stop into the road. 2. While awaiting USA clearance, a permittee may occupy an otherwise completed parklet without the installed wheel stops provided that the parking spaces adjacent are empty and temporarily unavailable. This, the adjacent parking spot is not available due to the work being performed to construct the parklet. 3. Epoxied Wheel stops: Wheel stops affixed to the road with epoxy will require planters in the 4-foot buffer space between the parklet and the wheel stop. A planter in this space must weigh at least 700 pounds. iii. The wheel stop shall be placed one foot from the curb at the edge of the front parking space. A wheel stop shall be placed one foot from the curb at the edge of the rear parking space. iv. Wheel stops shall be setback four feet from the parklet structure. v. Parklets extending the length between two in-street tree wells, as on University Avenue, may omit wheel stops. b. Reflective Delineators i. The parklet shall include installation of Manual of Uniform Traffic Control Devices (MUTCD)1 approved delineator posts or their approved equal. The delineator posts shall 1 MUTCD: Manual of Uniform Traffic Control Devices Exhibit A 5 be a minimum height of 42 inches. The delineator posts shall be placed at the beginning and end of the parklet, as well as every 20 feet of the parklet’s length. These shall be installed on the street side of the parklet. ii. Delineators shall be white with white reflective bands for use on the right side of a travel lane. Reflective bands shall have yellow reflective bands if used on the left edge of a travel lane. iii. Delineator posts shall be surface-mounted to the roadway via epoxy and/or glue down methods unless approved otherwise. iv. Maintenance of the delineator posts shall be the responsibility of the Permit holder. v. Examples of these devices are illustrated in Figures C and D. vi. Reflective delineators must be installed at the outside corners of the parklet. The channelizers or posts must align with the end of the platform and not encroach on the travel lane. vii. Delineators must be MUTCD approved, 42” high, white with white reflective tape, and anchored to the roadway. They shall be anchored via glue down methods viii. The delineators, posts, or their equal must be placed every 20 feet. 5. Parklet Enclosure a. The edges of the parklet platform shall be enclosed. The method of enclosure can take the form of planters, railing, cabling, or other appropriate enclosure. b. The minimum height of the required enclosure is 36 inches (3 feet) and the maximum height is 42 inches. c. The enclosure design must ensure visibility to passing traffic and pedestrians and not create a visual barrier. d. Continuous opaque walls above 42 inches that block views into the parklet from the surrounding streetscape are not allowed. e. The edge treatment shall be substantially secured to the parklet platform. Exhibit A 6 Figure D: Delineator Post with Yellow Reflectors. 6. Adjacent Sidewalk: Neither the construction nor operation of the parklet shall interfere with, obstruct, or otherwise diminish the adjacent sidewalk and pedestrian path of travel. 7. Anchoring a. The parklet shall be anchored to the City curb. b. The anchor shall be installed perpendicular to the curb. c. The manner of anchoring shall be through a pre-drilled hole into the curb and a concrete anchor bolt. d. Any anchoring proposed into the public street will require USA markings and additional staff review. 8. Accessibility a. The parklet shall comply with the Americans with Disabilities Act (ADA). b. Compliance with the ADA can include a parklet surface flush with the sidewalk or a parklet that provides an ADA compliant ramp, railing, landing, and associated eating and drinking facilities. c. Any seating and dining must comply with the applicable accessibility requirements outlined in the adopted California Building Code. d. Flush with Sidewalk Parklets: i. The surface of the parklet platform must be flush with the adjacent sidewalk with a maximum gap of one quarter inch and one quarter inch vertical tolerance. ii. A minimum 4-foot wide accessible path of travel and 5-foot diameter turnaround space must be maintained within the parklet. iii. Any abrupt changes in elevation exceeding 4 inches along an accessible path of travel shall be identified by 6-inch tall warning curbs. Figure C: White Delineator Post with White Reflectors. Exhibit A 7 e. Depressed or Elevated Parklets: i. If a ramp is required for access to the parklet or a portion thereof, it shall comply with all accessibility ramp provisions. 9. Utility Structures Accessibility a. No utilities access points shall be covered by the parklet. 10. Platform Structure a. Structural i. Parklets shall be constructed with quality materials and shall be of naturally durable wood (redwood, cedar), preservative-treated wood, or other engineered material suitable for exterior conditions. ii. The parklet must support 100 pounds per square foot live load. iii. All fastening hardware and fasteners adjacent to and into preservative-treated wood must be hot-dipped zinc-coated galvanized steel, stainless steel, silicon bronze or copper. b. Applicants interested in utilizing fabric sails or other architectural features which may “catch” wind, must provide proof of wind loads. c. Drainage, Ventilation and Rodent Proofing i. The underside of the platform shall be constructed to allow for seasonal drainage. ii. Adequate cross ventilation shall be installed to allow for the surface to dry within 12 –24 hours. iii. Openings under the platform shall be screened with corrosion-resistant material with a maximum one quarter inch mesh. 11. Table and Seating Layout a. Parklet tables shall be placed in conformance with the health and safety standards established by Santa Clara County and State of California. 12. Parking Signage a. Any existing parking signs installed adjacent to the parklet must be covered with opaque plastic; such coverage or illegibility shall occur only in manners approved by the City of Palo Alto through its Department of Public Works and/or its Office of Transportation. 13. Bicycle Facilities a. Bicycle racks or other bicycle facilities shall not be removed, made unusable, or otherwise disturbed by the construction of a parklet. b. Any parklet design that proposes such disruption shall require review by and approval of the Office of Transportation. Parklet Requirements 1. Parklets are prohibited in front of active driveways, on street curves or hills where horizontal or vertical sight-distance is an issue. 2. Parklets are permitted on streets with speed limits of 25 mph or less. Exhibit A 8 3. When located near an intersection, parklets must be located at least 25 feet from the rear most boundary of a crosswalk at the nearest intersection or street corner, as shown in Figure E. a. A curb extension (commonly referred to as a “bulb-out”), some other physical barrier that would protect the parklet in a corner location, or other specific site condition may allow the City to consider variations from the 25-foot minimum requirement. Figure E: Parklet distance from an intersection. 4. Parklets are generally permitted on streets with a running slope (grade) of five percent or less. 5. Parklets can’t block public utilities, bus stops, or driveways. 6. Parklets located next to driveways or alleys must be set back two feet from the outside edge of the driveway. 7. Parklets shall be placed no closer than 50 feet from a bus stop loading zone. 8. Parklets shall be placed no closer than 15 feet from fire hydrants. 9. Parklets shall be placed no closer than 5 feet from catch basin. Parklet construction and design must allow access to the catch basin and shall not obstruct catch basin. 10. Parklets cannot be installed in existing travel lane at any time. Exhibit A 9 11. Umbrella Standards a. Cannot extend past the buffer areas surrounding the parklet. b. Umbrellas or other shade structures cannot extend into the street-facing buffer. c. Must be placed on the parklet platform, not on the sidewalk, roadway, or in the buffer areas. d. Umbrellas must be sufficiently weighted or secured to prevent being blown over or into the street or sidewalk. 12. Heater Standards a. Heaters must be placed at least 5 feet away from any combustible materials. b. All canopies and coverings to be Rated. c. Extinguisher on site d. Propane qualifies as a hazardous material, so storage and permitting would have to be considered. 13. Lighting a. Outdoor lights are allowed if parklet permit holders can connect lighting to a source of power provided by the permit holder. b. Lights and any associated equipment, such as extension cords, must be rated for exterior use. c. Lights can be LED lights only. d. No cords can extend under the floorboards or under any carpeting or other floor covering. Best Practices A. The City of Palo Alto hopes that parklets enliven the streets of Palo Alto. The temporary parklet program allows Palo Altans to more safely enjoy local establishments in an environment that, due to being outdoors, decreases the risk of spreading COVID-19. The parklets also provide an amenity for businesses that may help them continue operations. B. The City encourages neighboring businesses to work together, reach agreements, and otherwise cooperate when it comes to the installation of parklets. That said, no establishment can veto or otherwise prevent the installation of a parklet permit that has been duly reviewed and issued by the City of Palo Alto. C. The City recommends that establishments that wish to install parklets discuss the concept and draft plans with immediately adjacent neighbors. The City may request evidence of such discussion, such as an email, certified email, or other documentation indicating the idea of installing a parklet and draft plans was presented and discussed. D. If two establishments eligible to install parklets are neighboring or are located in such close proximity that they may share the same parklet area, the City requires that the establishments share the parklet space. If one or more establishments are not interested in collaborating to develop and operate a shared parklet, the City requests the applicant provide written acknowledgement from the non-participating party. Attachment C – Summary of Legislative Actions 1 Topic Legislative Action Program and/or Policy Sidewalk Dining Interim Urgency Ordinance Council action to temporarily waive permit fees for encroachment permits and remove architectural review, thus allowing establishments to more quickly obtain permits to place tables and chairs on public sidewalks and in closed portions of public streets. Outdoor Retail Display and Sales Activities Interim Urgency Ordinance Allowing retailors to apply for and receive sidewalk encroachment permits, without fees or architectural review, to display merchandise on sidewalks and closed portions of public streets. Private Parking Lots Interim Urgency Ordinance Allowing up to 50% of a private, off-street parking lot to be temporarily converted to outdoor dining or outdoor retail space, including for provision of services. This is subject to staff review for conformance and safety, but will be allowed without fee and without architectural review. Alcohol Consumption Interim Urgency Ordinance Allowing establishments with valid ABC licenses for on-sale consumption and local CUPs to serve alcohol in outdoor dining areas that are properly permitted, including public sidewalks, parklets, closed portions of public streets, and expanded service areas in private parking lots. Requires establishments receive approval from ABC via the Temporary Catering Authorization permit. Also allows consumption of an alcoholic beverage with a meal in Lytton Plaza, Cogswell Plaza, and King Plaza. Public Parking Lots Interim Urgency Ordinance Enables the City Manager to permit dining, retail, or other activities in City-owned parking lots. Closure of all or portion of the lots and associated permitting would be subject to the development of rules, regulations, and guidelines. No current program is proposed to operate in City-owned parking lots. Personal Services, Indoor Recreation, Interim Urgency Ordinance Enables the City manager to develop rules, regulations, guidelines, and permitting process to allow personal services, indoor recreation, and other uses to be Attachment C – Summary of Legislative Actions 2 Other Uses conducted outdoors. This anticipates continued relaxation of the County Shelter in Place Order; enabling the City to develop and implement the program should the Health Order allow these activities. Temporary Street Closures Resolution Allows the City to temporarily close portions of California Avenue, University Avenue, and other side streets to these thoroughfares, for extended periods of time up to and including Labor Day 2020. While not currently proposed, the resolution authorizes the City Manager to close the intersecting streets as well. Parklet Demonstration Program Resolution Allows the City to permit and implement a Parklet Demonstration Program. Parklets would be permitted, through the Department of Public Works, to occupy on-street parking spaces in public streets. The resolution waives fees and architectural review. The resolution approves the parklet standards and requirements attached to the resolution.