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2020-10-05 City Council Agenda Packet
City Council 1 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ONLINE ON THE CITY’S WEBSITE. Monday, October 5, 2020 Special Meeting 5:00 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available on the City’s website on the Thursday 11 days preceding the meeting. ****BY VIRTUAL TELECONFERENCE ONLY*** https://zoom.us/join Meeting ID: 362 027 238 Phone:1(669)900-6833 Pursuant to the provisions of California Governor’s Executive Order N-29-20, issued on March 17, 2020, to prevent the spread of Covid-19, this meeting will be held by virtual teleconference only, with no physical location. The meeting will be broadcast on Cable TV Channel 26, live on YouTube at https://www.youtube.com/c/cityofpaloalto, and Midpen Media Center at https://midpenmedia.org. Members of the public who wish to participate by computer or phone can find the instructions at the end of this agenda. To ensure participation in a particular item, we suggest calling in or connecting online 15 minutes before the item you wish to speak on. TIME ESTIMATES Time estimates are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. HEARINGS REQUIRED BY LAW Applicants and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and up to three minutes for concluding remarks after other members of the public have spoken. Call to Order Study Session 5:00-6:00 PM 1.2951 El Camino Real [20PLN-00158]: Pre-screening of a Proposal to Rezone the Subject Property From CS (Service Commercial) and R-1 (Single-Family Residential) to Planned Home Zoning (PHZ) and Redevelop the Site With a Mixed-use Development That Includes Approximately 119 new Residential Units, 5,000 Square Feet of Office Space, and 1,000 Square Feet of Retail Space. Environmental Assessment: not a Project and any Subsequent Formal Application Would be Subject to the California Environmental Quality Act (CEQA). Zoning District: CS (Service Commercial) and R-1 (Single-Family) Staff Presentation Public Comment Applicant Presentation 2 October 5, 2020 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ONLINE ON THE CITY’S WEBSITE. Agenda Changes, Additions and Deletions Oral Communications 6:00-6:30 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. Minutes Approval 6:30-6:35 PM 2.Approval of Action Minutes for the September 21, 2020 City Council Meeting Consent Calendar 6:35-6:40 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 3.Adoption of a Resolution Approving and Authorizing the City Manager to Execute the Professional Services Agreement Between the Northern California Power Agency (NCPA) and the Cities of Palo Alto and Santa Clara for Electric Transmission, Generation and Regulatory Consulting Services, on Behalf of the City of Palo Alto, in an Amount Not-to-Exceed $821,875 Through October 31, 2025 4.Approval of Fiscal Year 2020 Reappropriation Requests to be Carried Forward Into Fiscal Year 2021 and Budget Amendments in Various Funds 5.Review and Approval of the 2020 Annual Williamson Act Contract Renewals Within Palo Alto City Limits 6.Approval of Amendment Number 1 to Contract Number C20176363 With Magellan Advisors, LLC for an Integrated Fiber Expansion Approach and Acceleration of the Fiber-to-the-Premises (FTTP) Business Case, and to Increase Compensation by $285,065 for a Total Not-to-Exceed Amount of $497,576 7.SECOND READING: Adoption of an Ordinance Amending Section 18.18.090 (Parking and Loading) of Chapter 18.18 (Downtown Commercial District) of Title 18 (Zoning) of the Palo Alto Municipal Code (PAMC) to Temporarily Extend Ineligibility of Certain Uses to Participate in the University Avenue In-lieu Parking Program (FIRST READING: May 11, 2020 PASSED: 4-3) City Manager Comments 6:40-6:45 PM MEMO Q&A 3 October 5, 2020 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ONLINE ON THE CITY’S WEBSITE. Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 6:45-8:15 PM 8.PUBLIC HEARING/LEGISLATIVE: Adoption of Several Ordinances Regarding Accessory Dwelling Units and Junior Accessory Dwelling Units Amending Palo Alto Municipal Code Titles 16 (Building) and 18 (Zoning); Amendments Include Repealing Section 18.42.040 (Accessory and Junior Accessory Dwelling Units) and Adding a new Chapter 18.09 (Accessory Dwelling Units and Junior Accessory Dwelling Units); and Updating Chapters 18.04 (Definitions), 16.58 (Development Impact Fees), 16.04 (California Building Code), 16.06 (California Residential Code), and 16.14 (California Green Building Standards Code). Environmental Assessment: Exempt From Review Under the California Environmental Quality Act (CEQA) Pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines Sections 15061(b)(3), 15282(h), 15301, 15302 and 15305 (CONTINUED FROM AUGUST 17, 2020) 8:15-9:30 PM 9.Approval of an Extension of the Pilot Phase of the Old Palo Alto Residential Preferential Parking Program (RPP) for a Period of Twelve Months (CONTINUED FROM SEPTEMBER 14, 2020) 9:30-10:30 PM 10.Review and Discussion of the City of Palo Alto's Public Art Program, and Direct Staff to Either Amend the Municipal Code to Temporarily Suspend the One Percent for Public Art in Municipal Projects and/or Private Development Projects for two Years, or Provide Other Direction to Staff Council Member Questions, Comments and Announcements Members of the public may not speak to the item(s) Adjournment AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance. MEMO MEMO Public Comment Public Comment Presentation Presentation Presentation Public Comment 4 October 5, 2020 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ONLINE ON THE CITY’S WEBSITE. Additional Information Informational Report Update Regarding the North Ventura Coordinated Area Plan (NVCAP) and Developments in the Project Vicinity Standing Committee Meetings Finance Committee Meeting Cancellation October 06, 2020 City Council Meeting Cancellation October 12, 2020 Schedule of Meetings Schedule of Meetings Tentative Agenda Tentative Agenda Public Letters to Council Set 1 5 October 5, 2020 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ONLINE ON THE CITY’S WEBSITE. Public Comment Instructions Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom-based meeting. Please read the following instructions carefully. A. You may download the Zoom client or connect to the meeting in- browser. If using your browser, make sure you are using a current, up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers including Internet Explorer. B. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. C. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. D. When called, please limit your remarks to the time limit allotted. E. A timer will be shown on the computer to help keep track of your comments. 3. Spoken public comments using a smart phone will be accepted through the teleconference meeting. To address the Council, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions B-E above. 4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. https://zoom.us/join Meeting ID: 362 027 238 Phone:1(669)900-6833 City of Palo Alto (ID # 11524) City Council Staff Report Report Type: Study Session Meeting Date: 10/5/2020 City of Palo Alto Page 1 Summary Title: 2951 El Camino Real: PHZ Prescreening Title: 2951 El Camino Real [20PLN-00158]: Pre-screening of a Proposal to Rezone the Subject Property From CS (Service Commercial) and R -1 (Single- Family Residential) to Planned Home Zoning (PHZ) and Redevelop the Site With a Mixed-use Development That Includes Approximately 119 new Residential Units, 5,000 Square Feet of Office Space, and 1,000 Square Feet of Retail Space. Environmental Assessment: not a Project; any Subsequent Formal Application Would be Subject to the California Environmental Quality Act (CEQA). Zoning District: CS (Service Commercial) and R-1 (Single-Family) From: City Manager Lead Department: Planning and Development Services Recommendation Staff recommends that Council conduct a prescreening review and provide informal comments regarding the applicant’s request to rezone the subject CS- and R1-zoned properties to “Planned Home Zoning (PHZ)”.1 Comments provided during the prescreening process are not binding on the City or the applicant. Executive Summary The subject prescreening application responds to the City Council’s expressed interest in learning from home builders what it takes to create more housing opportunities in Palo Alto. Adapting the planned community zoning process, a PHZ application must meet two initial qualifying criteria established by the City Council: 1) provide 20% of the total units as income restricted inclusionary housing and 2) provide more housing units than required for any net new jobs. 1 Referred to in this report as "Planned Home Zone" to emphasize the focus on housing as the benefit to the community. Still, PAMC Section 18.38, which outlines the requirement and process for Planned Community (PC) Zoning, remains the underlying code supporting application of this policy. City of Palo Alto Page 2 The location of this project along El Camino Real and its adjacency R1 zoned properties present unique policy considerations described later in this report that would benefit from initial Council comments. The prescreening request is a study session discussion only and no formal action will be taken by the City Council. Background On February 3, 2020, the City Council identified housing as one of three key priorities for the year. A few days later the Council unanimously endorsed using planned home zoning (PHZ) for housing and mixed-use housing projects to help spur housing production. PHZs allow a home builder to share a plan for adding housing, but also includes one or more requests to modify local zoning standards. In exchange for modifying certain development standards, the project must include at least 20% of the housing units as deed restricted for lower income households. Moreover, the number of housing units must offset the number of net new commercial jobs that are generated by the project. The City Council endorsed staff’s proposed approach for the inclusionary housing options and the formula to determine the jobs/housing ratio on September 21, 2020.2 Since Council signaled its unanimous interest in using PHZs to stimulate housing, staff has meet with several individuals exploring possible redevelopment of certain properties, including representatives for the subject request. In accordance with Palo Alto Municipal Code (PAMC) Section 18.79.030(A), a prescreening review is required for legislative changes, including rezoning, prior to submittal of a formal application. Prescreenings are intended to solicit early feedback on proposed projects and, like all study sessions, cannot result in any formal action. Because this proposal may return to the City Council as a quasi-judicial application, Councilmembers should refrain from forming firm opinions supporting or opposing the project. Project Description The owner, Jessica Rose Aragmonte, requests a prescreening review for a conceptual mixed-use project containing 119 dwelling units, 5,000 square feet of office space and 1,000 square feet of retail/commercial area. The total project floor area is 132,096 square feet resulting in a floor area ratio of 2.8 (2.8 FAR). The building extends to approximately 56 feet in height adjacent to El Camino Real with stair/elevator enclosures up to 65 feet. The height transitions to 37 feet adjacent to the R1-zoned properties to the rear and along Olive and Pepper Avenues. 2 Staff Report: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=43675.41&BlobID=78363. City of Palo Alto Page 3 The project has been designed with one level of subterranean parking and provides all required parking spaces (176 spaces) using mechanical lifts as permitted by the zoning code. Based on the existing land uses, the project would also meet the City’s retail preservation requirements. The residential units include a mix of studios (21), one bedroom (66) and two bedroom (32) units. The project would need to demonstrate compliance with one of the four 20% inclusionary housing requirement options recently endorsed by the City Council, but due to the recent direction received and the timing of this report, it was not known which option that applicant would choose. The applicant is aware of and would fulfil this requirement. There is also a slight reduction in office area with no net new increase in any commercial floor area and therefore, no net new increase in jobs based on the housing/jobs formula being used to evaluate PHZ projects. The applicant’s project description and project plans are included with this report as Attachments C and D, respectively. Project Setting The project site consists of five parcels adjacent to El Camino Real and between Pepper and Olive Avenues. Three parcels fronting El Camino Real are zoned service commercial (CS); two parcels fronting on Olive Avenue are zoned single family residential (R1).3 Attachment A provides a location map with adjacent zoning designations. Existing land uses includes commercial offices and a small retail building. One of the residential properties is developed with a one story commercial building; the other residential property contains a single family dwelling. The project site is located within the North Ventura Coordinated Area Plan (NVCAP) boundary (see below diagram – project site is located within Block 2), which is an ongoing planning initiative to create a more walkable mixed use neighborhood.4 3 One of the subject properties, 470 Olive Avenue, is the subject of an ongoing code enforcement action for not having amortized the commercial use on the R1 zoned property. On October 2, 2017 the City Council considered a prescreening request to allow for the retention of the commercial use. Staff report: https://www.cityofpaloalto.org/civicax/filebank/documents/61253. Meeting transcript: https://www.cityofpaloalto.org/civicax/filebank/documents/62983. 4 More information on the NVCAP effort is online: https://www.paloaltonvcap.org/ City of Palo Alto Page 4 Figure 1 NVACP Index Area/Block Map This stretch of El Camino Real has seen recent development activity including 50-foot tall, 57- unit workforce housing project at 2755 El Camino Real, which is under construction, and planning approvals for a new mixed-use, 30-unit residential project at the former Mike’s Bikes location. A few months ago, the City Council reviewed another PHZ prescreening application for a 187-unit mixed use project with office. To the east of the project site there is a mix of single family zoned and developed properties along Pepper and Olive Avenues with some commercial businesses; beyond that a large commercial property with an office building (Cloudera). Discussion The subject application is the second prescreening request since the Council’s endorsement to consider PHZ applications to promote more housing production in the community. This application is distinguished from the first prescreening5 in that it is principally a housing project, including only a small portion of office floor area. However, the proximity to adjacent residential properties and overall size present other policy considerations the Council may want to discuss. 5 Staff report for prescreening application at 3300 El Camino Real: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=73113.28&BlobID=77258. City of Palo Alto Page 5 The applicant owns one of the two R1-zoned properties incorporated into the design and has an agreement with the other adjacent residential property owner for a future development. While the conceptual design is shown with lower building heights, setbacks, and transitions in scale from other residential properties, incorporation of these two R1-zoned lots would extend the multi-family development into the residential neighborhood. The City’s zoning regulations include requirements that address the interface of larger developments on commercial properties from nearby residential uses and offers its greatest protections for R1-zoned property. In addition to daylight plane requirements, which are intended to preclude a building from encroaching in a calculated area that preserves access to light and provides some privacy to residential uses, the code also restricts the height of buildings on commercially zoned property to 35 feet when located within 150 feet of an R1- zoned property. For the subject application, most of the CS-zoned property is subject to this lower transitional height limit. The conceptual plans show some encroachment into the daylight plane requirement for the adjacent residential property along Olive Avenue and a building height of 37 feet that transitions to about 45 feet toward El Camino Real and 56 feet on the CS zoned portion of the project site. Additionally, the regulations for PHZ projects are precluded from exceeding 50 feet in height unless other land use entitlements such as a design enhancement exception or variance are granted. Staff’s initial review of the concept plans suggests these applications are not applicable and that a legislative zoning text amendment would be required to encroach into the residential transition area and to extend more than 50 feet in height. The contemplated floor area is another adjustment from the basic zoning regulations that would be required through the PHZ. In 2018, the City Council enacted the housing incentive program that authorized certain housing and mixed-use projects to build up to a 1.5 FAR along El Camino Real. The City Council also has authorized qualifying affordable housing projects to reach a 2.4 FAR (Wilton Court). The prescreening for the property located at 3300 El Camino Real a few months ago had a 1.8 FAR and included office and housing. Only Downtown Palo Alto has greater density in the City allowing up to a 3.0 FAR for housing and mixed-use housing projects. There are other aspects of the project that may require modification from the zoning regulations, which will be evaluated if an application is formally filed. One other known adjustment will be to lot coverage, but this is an area where the City has previously allowed consideration of a waiver for housing incentive projects. Private open space is another area that requires further analysis; the applicant’s initial plans do not comply and likely needs further refinement following the prescreening review. It is also worth noting that the project site is located within the California Olive Emerson regional plume of volatile organic compounds, which has affected groundwater, due to off-site contamination. A vapor barrier is therefore City of Palo Alto Page 6 likely to be required with this project and has cost and design implications to support future housing opportunities. Policy Implications The subject proposal illustrates the tension between the City’s desire to increase housing production, including income restricted inclusionary housing, with the external constraints imposed by market forces and applicant tolerance for risk over return within the City’s regulatory framework. When the City Council endorsed using PHZ to encourage more housing, it was known that this process would necessarily result in potential home builders seeking relief from certain development standards among those, floor area, parking reductions, adjustments to retail preservation requirements, lot coverage and height were anticipated to be the more likely requests. Each PHZ that is presented to the City Council represents the unique challenges individual developers face with specific lot constraints and their willingness to accept various returns on cost or yield for the project. The subject proposal is one of the larger projects staff has reviewed under the PHZ process, in terms of floor area and scale, but it also includes a decent mix in housing typology and meets the City’s parking requirements, which is often challenging standard to address. Due to the limited size of the existing retail area, the project is also able to address the City Council’s goals related to retail preservation. The City Council’s feedback on the conceptual plans to incorproate the R1-zoned properties as part of the multi-family development and the associated amendment to the comprehensive plan to change the underlying land use designation is a key consideration that could have a signficant impact on whether the project moves forward or is modified to address Council remarks. Equally important is the Council’s tolerance for legislative action to allow for an encroachment into the 35 foot transitional height limit and the overall 50 foot restriction for planned community projects. The residential/commercial transitional height restrictions for properties along El Camino Real that abut R1 zoning will continue to be a limiting factor for some PHZ applications. The overall 50 foot height limit for planned community, or PHZ projects, will similiarly be a concern for other projects throughout the City regardless of the zoning of adjacent properties. Staff anticipates a future text amendment will be required if the City Council is supportive of allowing at least certain projects to exceed this 50 foot height limit.6 6 Prior planned community, or PC applications, have been allowed to exceed 50 feet for certain architectural design elements or features and not for an additional level of floor area. The design enhancement exception is not City of Palo Alto Page 7 The size of the project, in terms of floor area, is another policy consideration for the City Council. Any reduction to floor area will result in smaller or fewer units, or both. A significant reduction in housing units will impact future returns that could adversely affect project feasibility or reduce it to a level where the applicant abandons the project. However, allowing for increases in floor area and height, in this instance, also enables the applicant to forego adding office floor area and results in a fully compliant parking facility illustrating the tradeoffs home builders make designing their projects. The Council is also aware that this project is located within the NVCAP study area. An informational report was transmitted to the City Council highlighting this project and some other applications on file in and around this area. At the outset of the NVCAP process, the City Council declined to establish a moratorium enabing these applications to be filed and processed. At this time, there is no formal direction from the NVCAP process that could be applied to this project. Lastly, the plans and compliance review in this report and preliminary. The purpose of the prescreening process is not to exhaustively review a project for compliance with code or require significantly detailed plans, which may change before a formal application is filed. If filed, however, a comprehensive review and analysis will be performed and the Planning and Transportation Commission and Architectural Review Board will have opportunities to hold public hearings and make recommendations to the City Council, which makes the final decision on any PHZ application. Stakeholder Engagement This item was published in the Daily Post on September 21, 2020, which is 14 days in advance of the meeting. Postcard mailing occurred on September 18, 2020, which is 17 days in advance of the meeting. It should be noted that the property owners (developers) have been attending the most recent NVCAP meetings and have expressed interest in hosting their own community meeting to engage with the neighbors. Environmental Review The prescreening application involves no discretionary action and is therefore not a project and not subject to review pursuant to the California Environmental Quality Act (CEQA). Attachments: Attachment A: Location Map Attachment B: Zoning Comparison Table Attachment C: Applicant's Project Description necessarily an appropriate mechanism to allow for an additional level or two of residential floor area and a text amendment to the zoning or other ordinance would be required to allow PHZ projects to exceed 50 feet. City of Palo Alto Page 8 Attachment D: Project Plans 119.7' 119.7' 50.0' 119.7' 115.7' 1 50.0' 200.0' 50.0' 134.7' 50 134.7' 50.0' 134.7' 50.0' 134.7' 50.0' 134.7' 50.0' 134.7' 50.0' 134.7' 50.0' 134.7' 50.0' 134.7' 0.0' 50.0' 50.0' 150.0' 150.0' 65.7' 119.7'119.7' 50.0' 119.7' 5 119.7' 50.0' 119.7' 50.0' 50.0' 119.7' 50.0' 119.7' 119.7' 50.0' 119.7' 50.0' 119.7' 50.0' 119.7' 50.0' 50.0' 119.7' 50.0' 119.7' 50.0' 119.7' 50.0' 119.7' 119.7' 50.0' 119.7' 50.0' 119.7' 50.0' 119.7' 50.0' 119.7' 50.0' 119.7' 50.0' 119.7' 50.0' 119.7' 50.0' 119.7' 50.0' 119.7' 50.0' 47.9' 150.0' 47.9' 150.0' 95.7' 150.0' 95.7' 150.0' 95.7' 150.0' 95.7' 150.0' 200.0' 72.6' 200.0' 50.0' 150.0' 430 440 450 460 470 2875 420 430 440 450 451 441 431 421 411 456 470 471 461 2999 2951 2905 461 3001 473 OLIVE AVENU PEPPER AVENUE CAMI NO REA L N O REAL This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Propsoed Project Site Assessment Parcel Current Features abc Known Structures Tree (TR) Zone Districts Curb Edge Sidewalk 0'63' 2591 El Camino Real Planned Housing Zoning (PHZ) CITY O F PALO A L TO IN C O R P O R ATE D C ALIFOR N IA P a l o A l t oT h e C i t y o f A P RIL 16 1894 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2016 City of Palo Alto sgutier, 2020-08-24 13:13:01 (\\cc-maps\Encompass\Admin\Personal\Planning.mdb) Zoning Comparison Table 2951 El Camino Real Parcel Data Address Zoning & Comp LU Parcel Area (approximate sf) APN 2905 El Camino Real CS & CS 14,361 132-37-033 2951 El Camino Real CS & CS 14,358 132-37-052 2999 El Camino Real CS & CS 7,179 132-37-030 470 Olive Street R-1 & SF 5,983 132-37-029 456 Olive Street R-1 & SF 5,983 132-37-028 Total Parcel Area 47,864 sf* Zoning Information CS Zoning Mixed Use & Residential CS HIP Zoning Proposed PHZ Required Setbacks Front 0 - 10' to create an 8' - 12' effective sidewalk width 12' effective sidewalk width Side 10’ Required Adjacent to R-1 10’ Required Adjacent to R-1 10’ at Olive, 13’ at Pepper Rear None Required Adjacent to Commercial, 10’ Adjacent to Residential None Required Adjacent to Commercial, 10’ Adjacent to Residential 29’ Adjacent to R-1 properties Street Side 5’ 5’ 5’ min, 20’ along Olive Height 50’ (35’ Within 150’ of a residential district (other than an RM-40 or PC zone) abutting or located within 50 feet of the site) 50’ (35’ Within 150’ of a residential district (other than an RM-40 or PC zone) abutting or located within 50 feet of the site) Max 65’ on ECR, 37’ Along Olive (35’ maximum height within 150 ‘ of any RE, R-1, R-2, RM, or applicable PC district.) Build to Lines 50% of frontage built to setback (1) 33% of side street built to setback (1) 50% of frontage built to setback (1) 33% of side street built to setback (1) 100 frontage built to setback, ~40% of street side Olive, 100% Floor Area Ratio 0.9:1 (47,864 sf); 0.5:1 residential, 0.4:1 Nonresidential 1.5:1 (71,798 sf); 2.0:1 Max ~2.8:1 (132,098 sf) Lot Coverage 50% (23,931 sf) 50% (23,931 sf) 63% (30,026 sf) Residential Density No Maximum No Maximum 119 DU on 1.1 acres (108 DU/acres) Common Open Space 30% 13,412 sf Private Open Space 150 sf/unit 37.39 sf/unit; Total 4,450 sf (Private) Parking Retail 1 space/200 sf (Intensive Retail) 5 spaces @ 1/200 sf Office 1 space/250 sf (General Business Office) 20 spaces @ 1/250 sf Housing 1 per micro unit 1 per studio unit 87 spaces/Studio & 1BD, 64 spaces/2BD 1 per 1-bedroom unit 2 per 2-bedroom or larger unit At least one space per unit must be covered Tandem parking allowed for any unit requiring two spaces (one tandem space per unit, associated directly with another parking space for the same unit, up to a maximum of 25% of total required spaces for any project with more than four (4) units) (21 studio units, 66 1-BED, 32 2-BED) Total Parking Required: Residential 151, Commercial 25 Proposed: 151 Residential, 26 Commercial Loading Area Office 1 space @ 10,000- 99,000 sf None Proposed Retail 1 space @ 5,000- 29,999 sf None Proposed Housing No Requirement for Multiple Family Residential Uses None Proposed File Number: 20PLN-00158 Date Submitted: July 22, 2020 Project Type: Mixed-Use Residential Address: 2951 El Camino Real Project Description: Acclaim Companies is proposing a new mixed-use residential development located at 2905-2999 El Camino that will provide 119 new residences while retaining the existing small office and retail uses currently on the project site. The multifamily residences will be rental units with up to 24 below-market- rate units. An underground parking garage preserves the street level for active uses and landscaping while providing a total of 176 parking spaces–151 residential parking spaces, 20 commercial parking spaces, and 5 retail parking spaces. The existing properties include approximately 1,000 square feet of retail and 5,000 square feet of office which will be retained along El Camino Real, increasing their visibility while buffering the new residences from busy traffic and street noise. The residential units are terraced in 3-5 stories oriented around a courtyard and along the quieter side streets of Olive Avenue and Pepper Avenue. To respect the massing and zoning of adjacent single-family homes, the building height varies from 3 stories directly adjacent to R-1 to 5 stories along El Camino Real. The 5th floor along El Camino real does not exceed 65 feet to the top of the highest point. The majority of the 5th floor is set back an additional 6’ along all street frontages to minimize the visual impact and accentuate the four-story height. The proposal complies with the CS setback requirements with a 12’ minimum sidewalk width along El Camino Real and a minimum 5’ side setback along Olive and Pepper Avenues. At 470 and 456 Olive, the setback is increased to 20’ consistent with R-1 zoning. The 5-story height and increased setbacks along Olive create a townhouse scale to reflect adjacent single-family homes. In addition to complying with the setbacks described above, the proposal complies with parking and open space requirements. The project sponsor would like the Palo Alto City Council to consider the following adjustments to the current zoning: • Additional height on CS parcels (50’ modified to 65’ via a text amendment) • Additional height on R-1 parcels (30’ modified to 37’ via a text amendment) • Increased FAR (1.5 modified to 2.8) • Increased residential density (modified to 108 DU/AC) These zoning modifications will contribute to a vibrant, mixed-use community by preserving existing ground floor retail and adding up to 24 affordable residential units. 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 “2951 El Camino Real” 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://bit.ly/PS2951ECR CITY OF PALO ALTO OFFICE OF THE CITY CLERK October 5, 2020 The Honorable City Council Attention: Finance Committee Palo Alto, California Approval of Action Minutes for the September 21, 2020 City Council Meeting Staff is requesting Council review and approve the attached Action Minutes. ATTACHMENTS: • Attachment A: 09-21-20 DRAFT Action Minutes (PDF) Department Head: Beth Minor, City Clerk Page 2 CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 3 Special Meeting September 21, 2020 The City Council of the City of Palo Alto met on this date in Virtual Teleconference at 5:04 P.M. Participating Remotely: Cormack, DuBois, Filseth, Fine, Kniss, Kou, Tanaka Absent: Consent Calendar Vice Mayor DuBois moved, seconded by Council Member Kou, third by Council Member Filseth to move Agenda Item Numbers 1 and 3 to a date uncertain. MOTION: Council Member Kniss moved, seconded by Mayor Fine to approve Agenda Item Numbers 2, 4-6. 1. Approval of Construction Cameras for use at the California Avenue Parking Garage and Highway 101 Pedestrian/Bicycle Overpass Construction Projects; and Approval of a Parking Guidance System in Accordance With the Surveillance and Privacy Protection Ordinance. 2. Approve Contract Amendments to Extend the Following Banking and Related Services Contracts: 1) U.S. Bank and its Wholly-owned Subsidiary Elavon for General Banking and Merchant Services; 2) Wells Fargo for Lockbox Services; 3) Union Bank for Investment Safekeeping (Custodial) Services; and 4) JP Morgan Chase Bank for Purchase Card (P-card) Services. 3. Consideration of an Appeal of a Director's Interpretation Made Pursuant to Palo Alto Municipal Code Section 18.01.025 and Related to Seismic Rehabilitation. The Project is Exempt From the California Environmental Quality Act (CEQA) in Accordance With CEQA Guidelines 15061(b)(3). 4. Approval of a Contract Between Project Safety Net, Inc. for Youth Mental Health Support in the Amount of $100,000 per Year; Approval of a One- time Transfer of $21,604 in Donations for a Not-to-Exceed Amount of $521,604 for the Term of September 21, 2020 Through June 30, 2025; and Approval of a Budget Amendment in the Public Services Donation Fund by a Two-thirds Vote. DRAFT ACTION MINUTES Page 2 of 3 City Council Meeting Draft Action Minutes: 09/21/2020 5. Resolution 9914 Entitled, “Resolution of the Council of the City of Palo Alto to Extend the Bicycle and Electric Scooter Share Pilot Program for 18 Months.” 6. Resolution 9915 Entitled, “Resolution of the Council of the City of Palo Alto Approving and Authorizing the City Manager or Designee to Execute the Continuing Reimbursement Agreement for Letters of Credit With US Bank National Association at an Estimated Cost of $35,000 per Year in Connection With the City’s Market Purchase Program Agreement With Northern California Power Association (NCPA);” and Authorizing the Execution and Delivery of all Documents Relating to the Letters of Credit. MOTION PASSED FOR AGENDA ITEM NUMBERS 2, 4-6: 7-0 Rail Communications Update 7. Connecting Palo Alto Rail Grade Separation: Receive an Update From the Expanded Community Advisory Panel (XCAP). NO ACTION TAKEN Council took a break at 7:19 P.M. and returned at 7:35 P.M. Action Items 8. Recommendation of the Planning and Transportation Commission (PTC) to: 1) Discuss the Draft Economic Analysis Analyzing Potential Increases to Inclusionary Housing Requirements; 2) Maintain the Inclusionary Housing Requirements at 15 Percent for Ownership Housing and the Housing Impact Fee for Rental Housing; and 3) Authorize an Analysis of Specific Adjustments Across the Spectrum of Zoning and Financial Factors That Would Support a 20 Percent Inclusionary Housing Requirement. MOTION: Mayor Fine moved, seconded by Council Member Kniss to: A. Maintain the inclusionary housing requirements at 15 percent for ownership housing units and retain the housing impact fee for rental housing projects; B. Direct Staff and the Planning and Transportation Commission to explore possible zoning amendments or other factors that could support a future 20 percent inclusionary requirement for ownership and rental housing while recognizing that such analysis will be constrained without funding for additional consultant resources; and DRAFT ACTION MINUTES Page 3 of 3 City Council Meeting Draft Action Minutes: 09/21/2020 C. Direct Staff to return with adjustments to parking and retail standards in a manner consistent with this analysis. AMENDMENT: Vice Mayor DuBois moved, seconded by Council Member Filseth to maintain inclusionary housing requirements at 15 percent for ownership housing units; and direct Staff to return with a proposal to replace the housing impact fee for rental housing with an inclusionary requirement. AMENDMENT FAILED: 3-4 Cormack, Fine, Kniss, Tanaka no MOTION PASSED: 6-1 Kou no Council took a break at 9:56 P.M. and returned at 10:11 P.M. 9. Discussion and Direction to Staff on Housing Affordability Requirements for Projects Proposed Under the Planned Home Zoning (Planned Community Zoning). This Action is Exempt From the California Environmental Quality Act (CEQA) in Accordance With CEQA Guidelines 15061(b)(3). MOTION: Council Member Kniss moved, seconded by Mayor Fine to: A. Endorse an approach that offers a menu of options to home builders to meet the 20 percent inclusionary requirement for “planned home zoning” projects; and B. Affirm direction regarding the calculation for determining the number of housing units required to offset net new jobs created by a planned home zoning project. MOTION PASSED: 4-3 DuBois, Filseth, Kou no Adjournment: The meeting was adjourned in honor of the late Supreme Court Justice Ruth Bader Ginsberg at 11:27 P.M. City of Palo Alto (ID # 11409) City Council Staff Report Report Type: Consent Calendar Meeting Date: 10/5/2020 City of Palo Alto Page 1 Summary Title: Member Services Agreement with NCPA for BAMx Consultant Title: Adoption of a Resolution Approving and Authorizing the City Manager to Execute the Professional Services Agreement Between the Northern California Power Agency (NCPA) and the Cities of Palo Alto and Santa Clara for Electric Transmission, Generation and Regulatory Consulting Services, on Behalf of the City of Palo Alto in an Amount Not-to-Exceed $821,875 Through October 31, 2025 From: City Manager Lead Department: Utilities Recommendation Staff recommends that Council adopt a resolution approving and authorizing the City Manager, or his designee, to execute the Professional Services Agreement between the Northern California Power Agency and the Cities of Palo Alto and Santa Clara for Electric Transmission, Generation and Regulatory Consulting Services, on behalf of the City of Palo Alto, for a five-year contract term ending October 31, 2025. The City’s share of the cost of the contract will not exceed $164,375 annually or $821,875 over the five-year term. Executive Summary The Northern California Power Agency (NCPA) provides contract management services to the cities of Palo Alto and Santa Clara for consulting services related to electric transmission issues affecting them both. For consulting agreements executed by NCPA on behalf of one, or a subset of, NCPA members, and to which the members are not a party, NCPA requires that those members enter into a Professional Services Agreement with NCPA. The approval of this Professional Services Agreement with NCPA (Attachment B) is the subject of this report. NCPA has a separate contract with Flynn Resource Consultants, Inc. (Flynn RCI) to provide electric transmission consulting services to Palo Alto and Santa Clara. The last contract between NCPA and Flynn RCI, initially executed in June 2017, expired on June 30, 2020. In May 2020 NCPA issued an RFP for a consultant to provide these services and in June selected Flynn RCI for a five-year contract through October 2025 for a not-to-exceed total of $3,250,000, or $650,000 during each annual period of the agreement. Palo Alto’s share of the five-year Flynn RCI contract services and NCPA’s contract management fees of $7,500 per year will not exceed CITY OF PALO ALTO City of Palo Alto Page 2 $821,875 for the full five-year term. A major benefit from these services positions Palo Alto to critically review statewide transmission projects that result in increases in high voltage transmission charges, which are estimated to increase over the next five years, from $10.9 million in FY 2021 to $14 million in FY 2025 for the City’s electric utility. Similar engagement through this agreement provides review of PG&E’s local transmission planning, which impact the low voltage transmission charges paid by the utility, also in the range of $10 million to $14 million per year over the next several years. Background NCPA is a joint powers agency whose members are publicly owned electric utilities, including Palo Alto (City). NCPA arranges for delivery of the City’s electric power on the electric transmission system to the point of interconnection with the City’s distribution system and manages electric resources that the City jointly owns with other NCPA members. Following the 2000/2001 California electricity market crisis, the California Independent System Operator (CAISO) initiated a major redesign of the state’s electricity markets, in which the City participated with the consulting assistance of Flynn RCI. The Cities of Palo Alto, Alameda, and Santa Clara identified common interests in advocating for certain market design proposals, and formed the group referred to as the Bay Area Municipal Transmission Group, or BAMx. Recognizing their need for technical and regulatory consulting services, the BAMx members considered ways to reduce costs by sharing professional services. The options considered included forming a new joint powers agency that would then retain a consultant; entering into three separate consulting agreements with one consulting company; or working through NCPA. At the time, the members decided that the best alternative was for NCPA to provide the consulting services, thereby reducing administrative costs and facilitating coordination with other NCPA members with common interests. Subsequently, in 2003, the BAMx members requested that NCPA provide professional services related to electric transmission, power generation, regulatory issues, and electric market design issues affecting the three cities. The wider NCPA membership was not engaged in the issues of interest to BAMx, so on March 1, 2003 NCPA entered into a consulting agreement with Flynn RCI to provide these services to the BAMx members. In 2015 Port of Oakland joined BAMx, but in 2016 the Port and City of Alameda withdrew from BAMx, at which time the annual Flynn Contract decreased from $760,000 to $650,000, and now BAMx consists of the Cities of Palo Alto and Santa Clara. Since March 2003, Flynn RCI has been representing BAMx in Bay Area electric transmission expansion planning processes, at CAISO proceedings related to electric market design in California, in filings at the Federal Energy Regulatory Commission, and in other regional electric transmission planning venues. BAMx, through Flynn RCI, its consultant, has also advocated for improved reliability of electricity transmission service in and to the Bay Area, has influenced the CAISO’s electric transmission planning process to provide for more effective stakeholder participation, and has persuaded the CAISO to take on the responsibility of forecasting the rapidly increasing transmission access charges. BAMx has also had some success in influencing City of Palo Alto Page 3 the transmission interconnection process, thereby lowering the anticipated transmission access charge increases. Recent activities from the ongoing partnership between BAMx, NCPA and Flynn RCI include participation in proceedings reviewing the investor owned utilities (such as PG&E) Public Safety Power Shutoff (PSPS) events; working with the CAISO to better forecast possible outages from such PSPS events; and participating in a stakeholder process to replace the current methodology for allocating grid charges to electric utilities. Discussion As the latest contract between NCPA and Flynn RCI expired on June 30, 2020, NCPA staff selected Flynn RCI through a competitive bidding process for a new five-year contract and is preparing to execute a new agreement to continue the consulting services from Flynn RCI through October 31, 2025. This agreement is provided for reference in Attachment C. NCPA requires the two BAMx members to execute a new Professional Services Agreement for the same five-year term, which is the subject of this report and the attached Resolution. The Professional Services Agreement between NCPA and the BAMx members (Attachment B) states that NCPA is performing or providing these services at the request of the BAMx members, and formalizes NCPA’s role in processing invoices from Flynn RCI and allocating the monthly charges to each BAMC member. The detailed cost allocation to the BAMx members is provided in Table 1. Table 1: Contract Cost Allocation per Year % Share Flynn Contract NCPA Admin Fee Total Palo Alto 25% $162,500 $1,875 $164,375 Santa Clara 75% $487,500 $5,525 $493,125 Total 100% $650,00 $7,500 $657,500 The agreement also contains provisions that limit NCPA’s liability and that of non-participating NCPA members, which NCPA requires in all its agreements. The value to the City of participating in BAMx is the continued advocacy for fair and equitable electric market rules, beneficial electric transmission solutions, and effective stakeholder participation in electric transmission planning processes. BAMx takes a lead role in advocating for rigorous economic and needs analyses in the CAISO’s transmission planning proceedings to build new transmission to potential renewable electric resource sites in remote locations. To put this in context for Palo Alto, every $100 million in transmission investments in the CAISO increases the high voltage transmission charge by six to seven cents, resulting in an increase in annual costs for the City’s electric portfolio of $60,000 to $70,000 (about 0.6 % of the City’s FY 2020 high voltage transmission access cost of $11 million). Resource Impact The City’s share of the Flynn RCI contract is available in the Electric Fund’s FY 2021 operating budget. The Consulting Agreement between NCPA and Flynn RCI (Attachment C) specifies a not- City of Palo Alto Page 4 to-exceed contract amount of $650,000 for FY 2021 for BAMx member services. NCPA’s BAMx Agreement (Attachment B) will also charge BAMx members an annual fee of $7,500 for monthly billing and contract preparation and review. The City’s 25% cost share, outlined in the BAMx Agreement Exhibit B (“Compensation Schedule and Hourly Fees”), is $164,375 per year. This is further described above in Table 1, with the City’s annual maximum of $164,375 covering 25% of the Flynn RCI contract services ($162,500) and 25% of the NCPA BAMx contract admin fee ($1,875). For the subsequent years of the contract the BAMx members will annually set the scope of work and budget up to a maximum of $650,000 per year. Funding necessary for the City’s share of the contract costs for FY 2022 and subsequent years will be contingent upon Council approval. NCPA’s previous multi-year contracts with Flynn RCI included a 3% increase in hourly fees at the the start of each fiscal year. In this contract, NCPA negotiated with Flynn to hold their rates at the FY 2020 levels for the duration of the five year contract. The annual Flynn Contract amount ($650,000) and annual NCPA fees ($7,500) are held at the same levels as the previous three- year contract executed in FY 2018, but this year NCPA negotiated a five-year term with the fixed hourly rates. Policy Implications Entering into this agreement does not create new policy, is consistent with existing policy, and is consistent with the 2018 Utilities Strategic Plan’s priority on Financial Efficiency and Resource Optimization. Stakeholder Engagement Through BAMx , Utility staff engages in statewide proceedings related to the electric transmission grid. Environmental Review The Council’s adoption of a resolution approving and authorizing the City Manager to execute the Professional Services Agreement between the Northern California Power Agency and the Cities of Palo Alto and Santa Clara on behalf of the City of Palo Alto does not require review under the California Environmental Quality Act, because it does not meet the definition of a “project” under section 21065 of the Public Resources Code and section 15378(b)(5) of the CEQA Guidelines, as an administrative governmental activity which will not cause a direct or indirect physical change in the environment. Attachments: • Attachment A: Resolution ATTACHMENT A NOT YET APPROVED 027091020 Resolution No. _______ Resolution of the Council of the City of Palo Alto Approving and Authorizing the City Manager to Execute the Professional Services Agreement Between the Northern California Power Agency and the Cities of Palo Alto and Santa Clara For Electric Transmission, Generation and Regulatory Consulting Services, on Behalf of the City of Palo Alto in an Amount not to Exceed $821,875 through October 31, 2025 R E C I T A L S A. The City of Palo Alto (“City”), a municipal utility and a chartered city, is a member of the Northern California Power Agency (“NCPA”). B. In 2003, Palo Alto, along with two other NCPA members, the Cities of Alameda and Santa Clara, formed the Bay Area Municipal Transmission Group (“BAMx”) and requested that NCPA provide professional consulting services related to electric transmission, power generation, regulatory issues, and electric market design issues affecting the BAMx members. C. Since 2003, NCPA has contracted with Flynn Resource Consultants, Inc. (“Flynn RCI”) to provide these consulting services to the BAMx members. D. The current contract between NCPA and Flynn RCI expired on June 30, 2020 and NCPA is planning to execute a new contract with Flynn RCI, following a competitive selection process, to continue to provide these consulting services through October 2025. E. In 2015, the City of Oakland, acting by and through its Board of Port Commissioners (the “Port of Oakland”) expressed a desire to join BAMx, and the BAMx members desired to add the Port of Oakland to their membership. F. In 2016, the Port of Oakland and City of Alameda both withdrew from BAMx membership (hereinafter, references to “BAMx” include the Cities of Palo Alto and Santa Clara). G. For consulting agreements executed by NCPA on behalf of one, or a subset of, NCPA members, NCPA requires that those members enter into a Professional Services Agreement with NCPA. H. The Professional Services Agreement between the BAMx members and NCPA specifies the terms and conditions under which NCPA will procure the requested professional consulting services from Flynn RCI and allocate charges between the BAMx members. The Council of the City of Palo Alto RESOLVES as follows: ATTACHMENT A NOT YET APPROVED 027091020 SECTION 1. The Council approves and authorizes the City Manager, or his designee, to execute on behalf of the City of Palo Alto the Professional Services Agreement between the Northern California Power Agency and the Cities of Palo Alto and Santa Clara for Electric Transmission, Generation, and Regulatory Consulting services, in an amount not to exceed $821,875 for Palo Alto’s share for the five year contract term through October 31, 2025. SECTION 2. The Council finds that funds to cover the City’s share of the Flynn RCI services under the BAMx contract with NCPA for the first year of the contract are allocated in the Electric Fund’s proposed budget for FY 2021. SECTION 3. The Council finds that the adoption of this resolution does not require review under the California Environmental Quality Act, because it does not meet the definition of a “project” under section 21065 of Public Resources Code and section 15378(b)(5) of the CEQA Guidelines, as an administrative governmental activity which will not cause a direct or indirect physical change in the environment. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ _____________________________ Deputy City Attorney City Manager _____________________________ Director of Utilities _____________________________ Director of Administrative Services City of Palo Alto (ID # 11526) City Council Staff Report Report Type: Consent Calendar Meeting Date: 10/5/2020 City of Palo Alto Page 1 Council Priority: Fiscal Sustainability Summary Title: Approval of Fiscal Year 2020 Reappropriation Requests to be Carried Forward into Fiscal Year 2021 Title: Approval of Fiscal Year 2020 Reappropriation Requests to be Carried Forward Into Fiscal Year 2021 and Budget Amendments in Various Funds From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that the City Council amend the Fiscal Year 2021 Budget Appropriation Ordinance for various funds as identified in Attachment A, and various capital projects as identified in Attachment B and Attachment C (requires a supermajority approval or 5 affirmative votes). Background As a part of the annual fiscal year-end process, staff reviews the City’s unencumbered and unspent appropriations of the fiscal year just ended and the City’s spending plans. Encumbered amounts are those subject to the legal claims of other parties due to contractual obligations (for example, commitments made through purchase orders), which are carried forward from one fiscal year to the next. Each year there are a small number of important projects that staff was not able to complete or encumber funds. The reappropriation process allows staff to bring forward funding recommendations to City Council to continue these projects into the next fiscal year. On September 22, 2014, the City Council approved a recommendation to amend Chapter 2.28, Section 2.28.090 of the Municipal Code, reducing the previous two-step reappropriations process (preliminary and final reappropriation authorization) to one step as long as the Administrative Services Department (ASD) Director/Chief Financial Officer (CFO) certifies that sufficient unencumbered and unexpended funds are available in the Fiscal Year that just ended to be carried forward to the subsequent Fiscal Year. Additionally, the City Council amended the Municipal Code to eliminate the provision allowing City of Palo Alto Page 2 for the automatic reappropriation of capital project funds. Capital projects; however, may still be delayed or deferred for various reasons therefore, there remains a need to reappropriate funds in some instances. This reappropriation is completed by reviewing the status of projects as part of the annual budget process and built into the annual adopted budget. Now that Fiscal Year 2020 has closed and staff has processed necessary accounting transactions, unexpended and unencumbered funds for each capital project have been reviewed one final time. Based on that review, staff recommends capital dollars remaining for some projects in various funds through Fiscal Year 2020 are reappropriated to Fiscal Year 2021. Staff also recommends reversing a portion of previously authorized reappropriations due to lower project cost or reprioritization due to the financial impacts of COVID-19. In a few capital projects, more funding was spent in FY 2020 than was anticipated in reappropriations. In these projects, staff recommends technical clean-up actions to reduce the funds appropriated in FY 2021 to align project funding with the appropriate fiscal year, while maintaining the same overall total project budget. Discussion Attachment A identifies those operating budget requests that staff recommends for approval, while Attachment B lists recommended capital project requests. Attachment C includes the recommended technical clean-up items for a few capital projects. With the submission of this report for City Council consideration, the ASD Director/CFO certifies sufficient unencumbered and unexpended funds are available from Fiscal Year 2020 to be reappropriated to Fiscal Year 2021. Operating Budget Reappropriations Overall, this report recommends the reappropriation of $23.8 million in expenses across all funds in the Operating Budget and $15 million in expenses offset by $22.4 million in revenues across all funds in the Capital Budget. Revenues may be out of balance to expenses due to the timing of many reimbursable grants which experience a delay by nature. In the City’s General Fund, reappropriation of $2.4 million in expenses offset by $0.5 million in revenues are recommended. Based on preliminary unaudited financial statements, these appropriated funds by the City Council were unspent in FY 2020. In reviewing the reappropriation of funds from FY 2020 to FY 2021, in light of the current financial constraints, staff were strict and conservative in determining which funds should be carried forward versus the savings realized to assist in rebuilding reserves including the Budget Stabilization Reserve in the General Fund. All recommended funds were previously appropriated for the same intended purpose, the project remains active, and/or the funds are bound in their usage due to donations or legal restrictions. In instances where projects were completed, were placed on pause due to COVID-19 impacts and other priorities, or there was not an active project plan, any savings were returned to reserve balances. The projects recommended for budget reappropriations are outlined in more detail in Attachment A and can generally be grouped into the following categories: City of Palo Alto Page 3 • Timing and Workload Delays: Projects in this category were delayed due to competing workload demands, appropriation of funds late in the fiscal year, or other unanticipated delays. Activity for these projects continue by the City Council and staff through continued public discussions, contract negotiations and procurement processes, and continued support through this public health emergency. Examples of projects in this category include: Advancing Racial Equity ($500,000), Elwell Court Office Improvements ($356,000), COVID-19 Small Business Support Program ($190,000), Public Toilet Lease ($198,000), Sustainability and Climate Action Plan (S/CAP) Update ($168,500), Green Stormwater Infrastructure (GSI) Plan ($115,000), Urban Forest Master Plan Year 5 ($80,000), Sea Level Rise Vulnerability Assessment Plan ($38,600). • Human Services Resource Allocation Process (HSRAP) Reserve: As part of the FY 2015 Adopted Budget, the City Council established a one-time reserve of $50,000 for HSRAP funding requests. In FY 2019, $10,000 was allocated to Heart and Home Collaborative, a non-profit organization that provides shelter and services to unhoused women in Palo Alto. No additional funds were allocated from this reserve in FY 2020, so the remaining balance of $40,000 is recommended to be reappropriated to FY 2021. • Think Fund Teen Services Programs (formerly Bryant Street Garage Teen Program): In 2001, the City Council voted to lease out a garage property located at 455 Bryant Street. Since this site was formerly the location of the Bryant Street Teen Center, a stipulation in the lease required that seventy five percent of the rental revenues would be used to fund programs specifically for Palo Alto youth and teens. In prior years, staff has returned the Policy and Services Committee and City Council for guidance on community engagement and potential uses of this funding (CMR 4776, CMR 8887). Teen Services programs include but are not limited to: Think Fund grants, ClickPA website, Teen Arts Council, MakeX, Art Center, Think Fund Gala, and the Buoyancy Teen Festival. The unspent balance of $351,000 is recommended to be reappropriated to FY 2021 to ensure resources are available to continue providing teen services to the community and develop a long‐term approach to maintain delivery of these services. These funds were discussed as part of the FY 2021 budget deliberations and at that time the Council wished to honor prior direction to maintain this one-time funding. Depending on the continued financial uncertainties and potential reductions in revenues that assist in funding these programs, these funds may be necessary to offset lower than expected revenue receipts while maintaining current FY 2021 service levels. • Multi-year Funding Agreements: Projects in this category include approved donations, grants, loans, and other funding agreements that restricts the use of these funds for a certain purpose, and that are anticipated to continue in the coming year. Examples in this category include: Solar Generator Trailer Grant ($200,000), SB2 Grant to streamline affordable housing ($310,000), Art Center Ceramics Studio Bequest ($37,525), Alta Housing (formerly Palo Alto Housing Corporation) Loan for Affordable Housing at 3705 City of Palo Alto Page 4 El Camino Real ($20.5 million) and El Dorado ($225,032), and the North Ventura Grant and Sobrato Funding Agreement for the North Ventura Coordinated Area Plan ($8,942). • Management Training Program: The Management Training Program provides $1,000 per eligible employee under the terms outlined in the MGMT and PAPMA labor agreements. The purpose of this program is to provide employees with resources to improve and supplement their job and professional skills. In total, $289,000 in unused funding is requested to be reappropriated to FY 2021 for various training programs, including: diversity, inclusion and ethics, civics and citizen engagement, leadership and management, budget, finance, procurement, interpersonal communication, presentation skills, business writing, time management, project management, change management, and safety & security. This action recommends carrying forward 50% for use aligned with the original intended use of the funds, and the remaining funds used to assist in balancing the FY 2020 budget actions to address financial implications of COVID-19. This action defaults these unspent funds to be allocated to the City’s Budget Stabilization Reserve. Capital Budget Reappropriations As discussed in the Background section of this report, starting with the Fiscal Year 2016 capital budget, all capital project reappropriations require City Council approval. The FY 2021 Adopted Budget included $88.0 million in reappropriated expenditure funds, partially offset by $25.8 million in reappropriated revenue, across all City funds based on estimates of anticipated spending and revenue collections in FY 2020. Since the adoption of the capital budget, some adjustments and refinements to project reappropriations are required since FY 2020 year-end actuals and project costs have been updated to reflect actual experience. These primarily reflect either increases or decreases to assumed reappropriations in the FY 2021 Adopted Budget: • Additional reappropriations are recommended when project expenditures originally anticipated to occur before the end of FY 2020 will now occur in FY 2021. Similarly, revenue that was anticipated to be collected in FY 2020 will be reappropriated to FY 2021 to align with the actual collections; • Downward adjustments to reappropriations are recommended when expenses were not anticipated to occur until FY 2021 and funding was reappropriated in the budget document to FY 2021. However, the expenses were realized in FY 2020, so an adjustment to reduce the budgeted funding in FY 2021 to align with the actual timing of expenses. The reappropriation of revenue is treated similarly; if it was assumed revenue would not be collected in FY 2020 and was reappropriated to FY 2021 an adjustment to reduce the reappropriated revenue is needed to align collections in the appropriate fiscal year. City of Palo Alto Page 5 Table 1 summarizes the recommended net adjustments as detailed in Attachment B. These Fiscal Year 2021 adjustments represent the final step in the City Council-approved change to the reappropriation process. There are sufficient expenditure savings in Fiscal Year 2020 to support all recommended adjustments. It should be noted that the revised process and active review of all project reappropriations results in a reduced level of reappropriated funding from one year to the next, compared to the process of automatically reappropriating unspent capital funding, better reflecting the needs of the various capital projects and of the overall program. Table 1: Year-End Capital Project Reappropriation Summary – By Fund Fund Number of Projects Recommended Revenue Reappropriation Adjustment Recommended Expense Reappropriation Adjustment GE N E R A L Capital Improvement Fund 41 $19,111,526 $10,468,213 Cubberley Infrastructure Fund 4 $0 $1,030,666 EN T E R P R I S E F U N D S Airport Fund 2 $3,174,109 $146,466 Electric Fund 7 $150,000 $(901,780) Fiber Fund 1 $0 $(682) Gas Fund 1 $0 $111,791 Stormwater Management Fund 2 $0 $2,698,273 Wastewater Collection Fund 1 $0 $(341,395) Wastewater Treatment Fund 1 $0 $2,551,988 Water Fund 5 $0 $223,001 IN T E R N A L SE R V I C E Technology Fund 1 $0 $(119,699) Vehicle Replacement and Maintenance Fund 3 $0 $(951,947) Total All Funds 69 $22,435,635 $14,914,895 City of Palo Alto Page 6 Technical Clean-up Actions As detailed in Attachment C, a net adjustment of $2.0 million in additional expenses is recommended in the New Public Safety Building project (PE-15001) in the Capital Improvement Fund to maintain the total approved project budget of $118.0 million. This net adjustment reflects higher than expected actual expenses in FY 2020, offset by lower than expected encumbered expenses in FY 2020. Actual project expenses came in FY 2020 that were programed in FY 2021 ($811,000), and a large contract was not executed in time for the FY 2020 fiscal close (approximately $2.8 million). This adjustment will align the budget by year with the actual expenses by year. A corresponding adjustment will be done in FY 2020 as part of the FY 2020 Year-End clean-up process, currently scheduled for review by the Finance Committee in December 2020. Resource Impact All projects, programs and corresponding funding contained within this report were previously approved by the City Council for FY 2020, this report simply aligns funding between fiscal years with the status of projects and programs. The ASD Director/CFO certifies that sufficient funds exist for the recommended Fiscal Year 2020 Operating Budget adjustments (Attachment A), and Capital Budget adjustments (Attachment B and Attachment C). For Operating reappropriations, staff recommends expense reappropriations of $2.4 million in the General Fund, $20.7 million in Special Revenue Funds, $0.5 million in Enterprise Funds, and $0.2 million in Internal Service Funds. Additionally, staff recommends revenue reappropriations of $0.5 million in the General Fund. For capital projects, in addition to the amounts reappropriated as part of the FY 2021 Adopted Capital Budget, staff recommends $11.5 million in expenses be reappropriated to FY 2021 in the Capital Improvement Funds, offset by $19.1 million in revenue reappropriations. Also recommended is a $4.5 million increase in expenditures in the various Enterprise Funds with reappropriated revenue of $3.3 million, and a net reduction of $1.0 million in expenditures in the Internal Service Funds. Including the reappropriations approved in the FY 2021 Adopted Capital Budget, the total reappropriations will be $51.4 million in expenses, partially offset by $25.5 million in revenue in the Capital Improvement Fund projects; $45.6 million in expenses, partially offset by $22.7 million in revenue in the Enterprise Fund projects; and $5.9 million in expenses, in the Internal Service Fund projects. The results of the reappropriations and technical clean-up actions will have a net zero impact to the total projects’ budgets over the life of the projects. Stakeholder Engagement Review and reconciliation of the funding available for both the Operating reappropriations and the reappropriations for individual Capital projects was coordinated between ASD divisions of the Office of Management and Budget and Accounting as well as with the impacted departments. City of Palo Alto Page 7 Policy Implications This recommendation is consistent with adopted Council policy. Environmental Review The action recommended is not a project for the purposes of the California Environmental Quality Act. Attachments: • Attachment A: FY 2020 Reappropriation Requests • Attachment B: FY 2020 Capital Improvement Program (CIP) Reappropriations • Attachment C: FY 2021 Technical Clean Up Items FY 2020 TO FY 2021 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A Fund Name Department Title Description Recommended Revenue Appropriation Recommended Expense Appropriation General Fund City Managers Office COVID-19 Small Business Support Program This action reappropriates funding for grants as part of the Small Business Support Program, created by the City Council to support local businesses during the COVID-19 pandemic. In May 2020 City Council approved a total of $500,000 in funding for small business grants (CMR 11309). This action will reappropriate the remaining funding, $190,000, so grants can continue to be distributed until funds are exhausted. $ - $ 190,000 General Fund Community Services Art Center Ceramics Studio Bequest This action reappropriates a bequest from the Sherrie Innis Estate. On June 19, 2017, the City Council approved a bequest of $54,350 from the Sherrie Innis Estate to maintain and upgrade the ceramic studio at the Palo Alto Art Center (CMR 8187). The ceramics studio maintains kilns, wheels, and several other large pieces of equipment that will need repair or replacement in the near future. The program does not have funding appropriated for major repairs and replacements and uses the bequest for these needs. At the close of FY 2020, $37,525 remained unspent and is recommended to be reappropriated for repair and replacement needs in FY 2021. $ - $ 37,525 General Fund Community Services Think Fund Teen Services This action reappropriates funds in the Think Fund (formerly the Bryant Street Garage Teen Program). In 2001, the City Council voted to lease out a garage property located at 455 Bryant Street. Since this site was formerly the location of the Bryant Street Teen Center, a stipulation in the lease required that seventy five percent of the rental revenues would be used to fund programs specifically for Palo Alto youth and teens. In prior years, Staff has returned to the Policy and Services Committee and City Council for guidance on community engagement and potential uses of this funding (CMR 4776, CMR 8887). Teen Services programs include but are not limited to: Think Fund grants, ClickPA website, Teen Arts Council, MakeX, Art Center, Think Fund Gala and the Buoyancy Teen Festival. This action will reappropriate $351,000, the same value previously reappropriated from FY 2019 to FY 2020, to ensure resources are available to continue providing quality teen services to the community and develop a long‐term approach to maintain delivery of these services. $ - $ 351,000 General Fund Non-Departmental Human Services Resource Allocation Program (HSRAP) Reserve This action reappropriates the remaining balance in the Human Services Resource Allocation Program (HSRAP) Reserve. As part of the FY 2015 Adopted Budget, the City Council established a one‐time reserve of $50,000 for HSRAP funding requests. In FY 2019, $10,000 was allocated to Heart and Home Collaborative, a non‐profit organization that provides shelter and services to unhoused women in Palo Alto. The remaining balance of $40,000 is recommended to be reappropriated to FY 2021 for future HSRAP use. $ - $ 40,000 Page 1 of 5 FY 2020 TO FY 2021 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A Fund Name Department Title Description Recommended Revenue Appropriation Recommended Expense Appropriation General Fund Non-Departmental Management Development Funds This action reappropriates funding for management training and professional development. The Management Training Program provides $1,000 per eligible employee under the terms outlined in the labor agreements with the Management and Professional group and the Palo Alto Police Management Association. The purpose of this program is to provide employees with resources to improve and supplement their job and professional skills. This action is recommended for the continuation of the program and will include the following training programs: ethics, civics and citizen engagement, leadership and management, budget, finance, procurement, interpersonal communication, presentation skills, business writing, time management, project management, change management, online-based education, and safety & security. As a result of associated with FY 2020 balancing actions to address financial implications of COVID-19, only half of the remaining balance of these funds is recommended to be reappropriated to FY 2021. $ - $ 289,000 General Fund Non-Departmental Advancing Racial Equity An allocation of $500,000 for the advancement of racial equity was approved in FY 2020 (CMR 11328). In light of the current national and local racial equity movement, this funding was set aside to help fund a recently approved resolution and the associated workplan to address system inequities that is currently with the Council for review. Since the workplan was not completed in FY 2020, these funds are recommended to be reappropriated to FY 2021 to support initiatives related to advancing racial equity, as directed by the City Council. $ - $ 500,000 General Fund Office of Emergency Services Solar Generator Trailer Grant This action reappropriates reimbursable grant funding from the State of Homeland Security (SHSG) through the County of Santa Clara. This grant will fund a mobile solar energy generation and storage trailer to provide emergency power to City facilities and community response efforts. Staff initiated the solicitation and selection of the contract in FY 2020 and anticipates awarding the contract in FY 2021. $ 200,000 $ 200,000 General Fund Planning and Development Services North Ventura Grant and Sobrato Funding Agreement: North Ventura Coordinated Area Plan (NVCAP) This action reappropriates funding from the North Ventura Grant and Sobrato for the North Ventura Coordinated Area Plan (NVCAP). In total, $888,000 was appropriated on March 5, 2018, to the Planning and Development Services Department to develop coordinated area plans that guide the development of the North Ventura area and complete the associated environmental clearance (CMR 8986). The Department has secured consultancy services to assist staff with the planning and urban design of the area, and a feasibility analysis to integrate Matadero Creek into an open space area within the NVCAP project boundary. At the close of FY 2020, $8,942 of this funding remains unspent and will be used to continue public outreach and other work obligated under the funding agreement in FY 2021. $ 8,942 $ 8,942 Page 2 of 5 FY 2020 TO FY 2021 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A Fund Name Department Title Description Recommended Revenue Appropriation Recommended Expense Appropriation General Fund Planning and Development Services SB2 Grant This action reappropriates reimbursable grant funding from the California Department of Housing and Community Development (HCD) to implement process improvements that accelerate housing production and streamline affordable housing approvals. Due to staff vacancies, this work is not anticipated to begin until FY 2021. $ 310,000 $ 310,000 General Fund Public Works Public Toilets Contract This action reappropriates funding to cover anticipated back due payments for the public toilets lease with the vendor, JC Decaux. The City has been working on a new lease with JC Decaux after the contract expired in 2019. Services for the public toilets continued beyond the contract term; however, billing was temporarily withheld by JC Decaux pending the outcome of the contract negotiations. Once a new lease is reviewed and approved by Council (currently scheduled for October 5, 2020), all back- due payments for FY 2020 will need to be paid. $ - $ 198,000 General Fund Public Works Sea Level Rise Contract This action reappropriates funding for the portion of the Sea Level Rise Vulnerability Assessment Plan contract covered by the Sustainability Division in Public Works. This plan is jointly funded by the Wastewater Treatment Fund Watershed Protection Group and the Utilities Department. On March 18, 2019 the City Council accepted the Sea Level Rise Policy and directed staff to return to Council with a Sea Level Rise Adaptation Plan by December 2020 (CMR 9576). This plan aligns with the City Council’s Climate Change priority, and will serve as the Sustainability and Climate Action Plan (S/CAP) Sea Level Rise chapter. $ - $ 38,600 General Fund Public Works Sustainability and Climate Action Plan (S/CAP) Update Contract This action reappropriates funding for the 2020 S/CAP Update process as directed by the Council in June 2020 upon reviewing CMR 11304. This update will help the City to work towards the Council priority of "Sustainability, in the context of climate change" as well as to meet its sustainability goals, including its goal of reducing greenhouse gas (GHG) emissions 80 percent below 1990 levels by 2030. $ - $ 168,500 General Fund Public Works Urban Forest Master Plan Year 5 This action reappropriates funding to complete Year 5 tasks of the Urban Forest Master Plan (UFMP) that were scheduled for FY 2020, iuncluding a corntract amendment with Canopy. An amendment for the Canopy contract was recommended in FY 2020 to implement several Year 5 UFMP programs; however, due to delays caused by the COVID-19 outbreak, the contract amendment was delayed (currently scheduled for October 5, 2020). Year 5 of the UFMP requires completion of nine programs, including The Great Oak Count to update the Oakwell Survey in order to assess changes in Palo Alto’s native oak population since 1997, evaluate their health, and recommend actions to improve conditions. This program is the largest piece of Year 5 and requires the assistance of Canopy. $ - $ 80,000 518,942$ 2,411,567$ Total General Fund Reappropriation Page 3 of 5 FY 2020 TO FY 2021 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A Fund Name Department Title Description Recommended Revenue Appropriation Recommended Expense Appropriation Housing In-Lieu Fund: Residential and Commercial; Residential Housing Impact Fund Planning and Development Services Alta Housing (formerly Palo Alto Housing Corporation (PAHC)) Affordable Housing Loan Agreement: 3705 El Camino Real (Wilton Court) This action reappropriates funding for an agreement with Alta Housing (formerly the Palo Alto Housing Corporation (PAHC)) to develop and construct a 100 percent affordable housing project at 3705 El Camino Real (Wilton Court). In total, $20.5 million in City contributions have been appropriated for this project. The City Council approved the initial contribution of $10.0 million at the June 3, 2019 meeting (CMR 10143); $1.0 million from the Residential Housing Fund, and $9.0 million from the Commercial Housing Fund. The City Council approved an additional contribution of $10.5 million at the January 13, 2020 meeting (CMR 10928); $7.2 million from the Residential Housing Fund, $2.7 million from the Commercial Housing Fund, and $0.6 million from the Residential Housing Impact Fund. At the close of FY 2020, no expenditures had been made. The full $20.5 million is recommended to be reappropriated to begin the project in FY 2021. $ - $ 20,518,931 Housing In-Lieu Fund: Commercial Planning and Development Services Alta Housing (formerly Palo Alto Housing Corporation (PAHC)) Affordable Housing Loan Agreement: El Dorado This action reappropriates funding for the El Dorado affordable housing agreement. In total, $375,000 was approved by the City Council on June 22, 2015 to Alta Housing (formerly the Palo Alto Housing Corporation (PAHC)) to deed restrict and rehabilitate property at 110‐1030 El Dorado Avenue (CMR 5712). The deed restriction ensures that the three units on this property are leased only to qualifying low income households. At the close of FY 2020, Alta Housing had drawn down a total of $149,968. This action ensures that the unspent balance is available to continue the rehabilitation of the properties in FY 2021. $ - $ 225,032 -$ 20,743,963$ Total Special Revenue Fund Reappropriation Page 4 of 5 FY 2020 TO FY 2021 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A Fund Name Department Title Description Recommended Revenue Appropriation Recommended Expense Appropriation Electric, Gas, Water, and Wastewater Collection Funds Utilities Elwell Court Office Improvements This action reappropriates funding from various utilities funds to cover Elwell Court office renovations and associated moving costs. Funding for this project was previously appropriated in FY 2020, however the project was delayed due to the lease renewal process. In addition to renovations to improve the space at Elwell, this project will help bring the space in compliance with the American Disability Act (ADA). The City is currently evaluating external leases, including Elwell Court, to ensure the space is still needed as a result of shelter in place orders due to the COVID-19 outbreak. Use of this funding will be dependent onapproval of the lease renewal. $ - $ 356,000 Stormwater Management Fund Public Works Green Stormwater Infrastructure (GSI) Plan This action reappropriates funding to cover the first year of a 5-year contract for consultant services providing technical support to develop and implement the Green Stormwater Infrastructure (GSI) Plan. The GSI Plan was accepted by the City Council at the May 13, 2019 meeting to comply with the State's Municipal Regional Stormwater National Pollutant Discharge Elimination System (MRP) Permit and outline a plan to integrate GSI features into the City's urban landscapes and stormwater systems (CMR 9883). As part of this plan, consultancy services will be used to develop an Engineering Specifications document for citywide GSI standards and a GSI Maintenance and Monitoring Manual. The solicitation and selection of the vendors were not completed prior to the end of FY 2020, this action ensures sufficient funding is available to award the contract in FY 2021 (anticipated to be presented to Council in Fall 2020). $ - $ 115,000 $ - $ 471,000 Technology Fund Information Technology Development Services Technology Fee This action reappropriates funding for various technology projects in the Planning and Development Services Department. As part of the Adopted Municipal Fee Schedule, a surcharge up to three percent is included in fees to recover funding for technology projects. These projects include the ongoing technical support of the City's Graphical Information System (GIS) and the new ESRI platform, implementing an online permitting system (reducing in-person transactions), expanding Accela capabilities, and digitizing and storing plans and records. At the close of FY 2020, $170,500 of the approximate $325,000 collected remains unspent and will be used for planned projects in FY 2021. $ - $ 170,500 -$ 170,500$ Total All Funds 518,942$ 23,797,030$ Total Enterprise Fund Reappropriation Total Internal Service Fund Reappropriation Page 5 of 5 FY 2020 to FY 2021 Capital Project Reappropriations ATTACHMENT B 1 Project ID Project Title Fund Revenue Reappropriation Adjustment Expense Reappropriation Adjustment AC‐18001 JMZ Renovation Capital Improvement Fund 151,123$ (152,000)$ AC‐86017 Art In Public Spaces Capital Improvement Fund ‐$(49,400)$ FD‐14002 Fire Ringdown System Replacement Capital Improvement Fund 35,000$ ‐$ FD‐18000 Self‐Contained Breathing Apparatus (SCBA) Replacement Capital Improvement Fund 3,700$ ‐$ FD‐20000 Cardiac Monitor Replacement Capital Improvement Fund 13,000$ (22,000)$ PE‐08001 Rinconada Park Improvements Capital Improvement Fund ‐$(10,000)$ PE‐09003 City Facility Parking Lot Maintenance Capital Improvement Fund ‐$199,866$ PE‐11011 Highway 101 Pedestrian/Bicycle Overpass Project Capital Improvement Fund 8,752,658$ 169,901$ PE‐12011 Newell Road/San Francisquito Creek Bridge Replacement Capital Improvement Fund 1,864,873$ (15,000)$ PE‐12017 City Hall First Floor Renovations Capital Improvement Fund ‐$185,300$ PE‐13011 Charleston/Arastradero Corridor Project Capital Improvement Fund (198,219)$ ‐$ PE‐14018 Baylands Boardwalk Improvements Capital Improvement Fund ‐$6,000$ PE‐15003 Fire Station 3 Replacement Capital Improvement Fund ‐$28,900$ PE‐15020 Civic Center Waterproofing Study and Repairs Capital Improvement Fund ‐$49,800$ PE‐17004 California Avenue District Gateway Signs Capital Improvement Fund ‐$142,886$ PE‐17010 Civic Center Electrical Upgrade & EV Charger Installation Capital Improvement Fund 240,000$ 163,056$ PE‐18000 New California Avenue Area Parking Garage Capital Improvement Fund ‐$307,016$ PE‐18001 CalTrain Corridor Video Management System Installation Capital Improvement Fund ‐$78,398$ PE‐18002 High and Bryant Street Garages Waterproofing and Repairs Capital Improvement Fund ‐$(12,250)$ PE‐18004 Fire Station 4 Replacement Capital Improvement Fund ‐$249,998$ PE‐18016 Civic Center Fire Life Safety Upgrades Capital Improvement Fund ‐$249,357$ PE‐19001 Water, Gas, Wastewater Office Remodel Capital Improvement Fund 654,000$ 84,269$ PE‐19002 Animal Shelter Renovation Capital Improvement Fund ‐$1,052,804$ PE‐20000 Foothills Park Dam Seepage Investigation and Repairs Capital Improvement Fund ‐$30,000$ PE‐20002 City Facilities Assessment and Record Plan Management System Capital Improvement Fund ‐$150,000$ PE‐86070 Street Maintenance Capital Improvement Fund 1,707,171$ 5,620,452$ PF‐01003 Building Systems Improvements Capital Improvement Fund ‐$30,000$ PF‐02022 Facility Interior Finishes Replacement Capital Improvement Fund ‐$243,422$ PF‐14003 University Avenue Parking Improvements Capital Improvement Fund 343,000$ ‐$ ‐484,587$ ‐ PF‐16006 Municipal Service Center Lighting, Mechanical, and Electrical Improvements Capital Improvement Fund $ PG‐06001 Athletic Courts Resurfacing Capital Improvement Fund $(39,100)$ Page 1 of 3 FY 2020 to FY 2021 Capital Project Reappropriations ATTACHMENT B Project ID Project Title Fund Revenue Reappropriation Adjustment Expense Reappropriation Adjustment PG‐06003 Benches, Signage, Walkways, Perimeter Landscaping, and Site Amenities Capital Improvement Fund ‐$(10,435)$ PG‐09002 Park and Open Space Emergency Repairs Capital Improvement Fund ‐$(12,550)$ PL‐04010 Bicycle and Pedestrian Transportation Plan Implementation Capital Improvement Fund 1,200,000$ ‐$ PL‐05030 Traffic Signal and Intelligent Transportation Systems Capital Improvement Fund 700,000$ ‐$ PL‐16002 Parking Management and System Implementation Capital Improvement Fund 1,145,220$ ‐$ PL‐17001 Railroad Grade Separation and Safety Improvements Capital Improvement Fund 2,000,000$ ‐$ PL‐20000 Churchill Avenue/Alma Street Railroad Crossing Safety Improvements Capital Improvement Fund 500,000$ 400,000$ PO‐11001 Thermoplastic Lane Marking and Striping Capital Improvement Fund ‐$16,394$ PO‐12001 Curb and Gutter Repairs Capital Improvement Fund ‐$448,469$ PO‐89003 Sidewalk Repairs Capital Improvement Fund ‐$400,073$ CB‐16002 Cubberley Roof Replacements Cubberley Fund ‐$427,708$ CB‐17001 Cubberley Repairs Cubberley Fund ‐$26,744$ CB‐17002 Cubberley Field Restroom Cubberley Fund ‐$256,215$ CB‐19001 Cubberley Building Management Systems Cubberley Fund ‐$319,999$ AP‐16000 Airport Apron Reconstruction Airport 3,174,109$ ‐$ AP‐20000 Airport Facilities Electrical Improvements Airport ‐$146,466$ EL‐10006 Rebuild Underground District 24 Electric ‐$525,678$ EL‐16000 Rebuild Underground District 26 Electric ‐$200,000$ EL‐16003 Substation Physical Security Electric ‐$(18,599)$ EL‐17002 Substation 60kV Breaker Replacement Electric ‐$591,980$ EL‐17005 Inter‐substation Line Protection Relay Electric ‐$(31,946)$ EL‐17007 Facility Relocation for Caltrain Modernization Project Electric ‐$(1,090,085)$ EL‐19004 Wood Pole Replacement Electric 150,000$ (1,078,808)$ FO‐16000 Fiber Optics Network ‐ System Rebuild Fiber Optics ‐$(682)$ GS‐80019 Gas Meters and Regulators Gas ‐$111,791$ SD‐06101 Storm Drainage System Replacement And Rehabilitation Stormwater Management ‐$372,328$ SD‐19000 Loma Verde Avenue Trunk Line Improvements Stormwater Management ‐$2,325,945$ WC‐16001 Wastewater Collection System Rehabilitation/Augmentation Project 29 Wastewater Collection ‐$(341,395)$ WQ‐19003 Advanced Water Purification Facility Wastewater Treatment ‐$2,551,988$ WS‐07000 Water Regulation Station Improvements Water ‐$472,394$ WS‐09000 Water Tank Seismic Upgrade and Rehabilitation Water ‐$(12,688)$ Page 2 of 3 FY 2020 to FY 2021 Capital Project Reappropriations ATTACHMENT B Project ID Project Title Fund Revenue Reappropriation Adjustment Expense Reappropriation Adjustment WS‐13001 Water Main Replacement ‐ Project 27 Water ‐$(197,378)$ WS‐14001 Water Main Replacement ‐ Project 28 Water ‐$(22,591)$ WS‐19000 Mayfield Reservoir Subgrade and Venting Repair Water ‐$(16,736)$ TE‐12001 Development Center Blueprint Technology Enhancements Technology ‐$(119,699)$ VR‐18000 Scheduled Vehicle and Equipment Replacement ‐ Fiscal Year 2018 Vehicle ‐$17,196$ VR‐19000 Scheduled Vehicle and Equipment Replacement ‐ Fiscal Year 2019 Vehicle ‐$(507,095)$ VR‐20000 Scheduled Vehicle and Equipment Replacement ‐ Fiscal Year 2020 Vehicle ‐$(462,048)$ Total All Funds 22,435,635$ 14,914,895$ Page 3 of 3 FY 2021 Technical Clean‐up Actions ATTACHMENT C Fund Name Department Title Description Expense Capital Improvement Fund Public Works New Public Safety Building (PE‐15001) This 2014 Infrastructure Plan (IP) project was over expended in FY 2020, and the budget was increased by $811,056 as part of the FY 2020 Year‐End process, and a corresponding decrease of $811,056 is recommended in FY 2021. In addition, as part of the Adopted FY 2021 Capital Budget, it was estimated that $2.8 million would be encumbered for this project in FY 2020. However, this contract was unable to be completed before the end of FY 2020 so $2.8 million is recommended to be appropriated to this project in FY 2021 in order to maintain the total project budget of $118.0 million over the life of the project. 2,018,149$ Page 1 of 1 City of Palo Alto (ID # 11531) City Council Staff Report Report Type: Consent Calendar Meeting Date: 10/5/2020 City of Palo Alto Page 1 Summary Title: Williamson Act Contract Renewal (2020) Title: Review and Approval of the Annual Williamson Act Contract Renewals Within Palo Alto City Limits (2020) From: City Manager Lead Department: Planning and Development Services Recommendation Staff recommends that the City Council take the following actions: 1. Find that the project is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15317; and 2. Review and approve the renewal of Williamson Act contracts listed in Attachment A. Background The California Land Conservation Act of 1965, commonly known as the Williamson Act, is a state program. The program discourages agricultural lands from being converted to urban uses, preserves open space, and promotes efficient urban growth patterns. Under the California Land Conservation Act Program (Williamson Act), private landowners can voluntarily restrict their land to agricultural and compatible open-space land uses under a minimum ten-year rolling term contracts administered by the jurisdictions. In return, the State assesses the restricted parcels for property taxes at a rate consistent with their actual use or generated income, rather than potential market value. The program provides property tax relief to owners of agricultural land who agree to limit the use of their property to agricultural or other approved compatible uses. On July 24, 1974, the City of Palo Alto adopted Ordinance No. 2663 to institute rules for both establishing and administering Williamson Act contracts for Palo Alto properties. Among other things, the rules regarding administration of established contracts limit the allowable uses of the property to what is described in the contract. The rules also provide that the contract must City of Palo Alto Page 2 remain in place when a property is sold, ensuring that the new owners are subject to the same use restrictions. The contracts are for a rolling ten-year term with a renewal date of January 1 each year, at which time one year is added to the contract term. The term would remain a total of ten years unless either party provides notice of non-renewal. Every year, at least 80 days prior to the January 1 renewal date, the City Council reviews the contracts. Also, at that time, Council may initiate a notice of non-renewal for any contract or approve a notice of non-renewal submitted by a landowner. If the Council takes such action, then that contract does not renew on January 1 and terminates ten years later. Under certain conditions, the Council may also approve a landowner’s request to cancel a contract. Should Council not approve a notice of non-renewal or a cancellation, the contract automatically renews for the ten-year term each January 1. Discussion The Williamson Act Property Report for the calendar year 2020 (Attachment A) includes information on the 23 existing parcels in Palo Alto currently under contract, as well as parcels undergoing the process of non-renewal. Attachment A lists 2020 assessed land values, acreages, and the land class (prime and non-prime land) for these parcels. Attachment B is a map showing the locations of these individual parcels has been prepared for reference. Properties Under Contract Renewal Owners of 23 properties are renewing their contracts with the City of Palo Alto for another ten- year term, starting from January 1, 2021. Of the 23 contracts, the privately-operated Palo Alto Hills Golf and Country Club is not eligible for tax benefits. Although this golf course is a permitted use, only golf courses that are open to the public and charge minimal green fees are eligible for tax benefits. A total of 350 acres of land are under Williamson Act contracts in the City of Palo Alto. Approximately 42 percent of this land (147 acres) is defined as prime land with a Class I or Class II natural resource conservation service rating. Class I or II lands are considered to have the features to sustain long-term agricultural production. Private individuals own about 70 percent of the land under contract. Stanford University Board of Trustee owns another 27 percent while the remaining three percent is owned by City of Palo Alto. The Williamson Act Status Report 2016-17 published by California Department of Conservation in August 2019 provides the detailed report of the land enrollment under the California Land Conservation Act throughout the state of California from January 1, 2016 through December 31, 2017.1 11 https://www.conservation.ca.gov/dlrp/wa/Documents/stats_reports/2018%20WA%20Status%20Report.pdf City of Palo Alto Page 3 Properties Under Contract Non-Renewal No applications for Williamson Act contract non-renewal were filed with the City between November 1, 2019 through August 1, 2020. At present, there are two parcels, previously approved for non-renewal by the City Council (in 2014 and 2016), that are undergoing the ten- year non-renewal process for termination. The two parcels will reach the end of their remaining terms on December 31, 2024 and 2026 respectively (see Attachment A for parcel details). The California Department of Conservation’s Williamson Act Program requires participating cities and counties to complete and submit applications for an Open Space Subvention Act payment per Government Code section 16144. The code states: "On or before October 31 each year, the governing body of each county, city, or city and county shall report to the Secretary of the Resources Agency the number of acres of land under its regulatory jurisdiction which qualify for state payments pursuant to the various categories enumerated in Section 16142, together with supporting documentation as the secretary by regulation may require.” While the State no longer provides meaningful subvention payments to local agencies, this reporting requirement remains in the law. Policy Implications The recommended action implements Ordinance No. 2663 regarding the administration of the Williamson Act for Palo Alto properties. The Williamson Act program complies with the goals of the Natural Environment Element of the City’s Comprehensive Plan. The Natural Environment Element encourages protection, and conservation of Palo Alto’s open space, natural resources and ecosystems. Program N1.3.1 of Goal N-1 specifically supports preservation of Palo Alto’s Williamson Act agricultural preserves. Resource Impacts The State of California bases property tax assessment for Williamson Act parcels on a rate consistent with the actual land use or generated income, rather than its potential market value. Because of this method of assessment, the City does not receive market value tax revenue for these properties. Based on data collected from the County Assessor’s Office, the City would have received approximately $15,725 in tax revenue if the parcels were not under Williamson Act contracts. Historically, the City received approximately $1,000 a year in subvention payments from the State to partially offset the foregone revenue. However, the State suspended funding for these payments since 2011. The Assembly Bill 1265 allowed participating cities and counties to City of Palo Alto Page 4 recapture ten percent (10%) of the benefits; however, the implementation of this provision is generally only cost effective for cities and counties that have significant acreage under contract. Timeline This is an annual report due to the California Department of Conservation by October 31 of each year. Stakeholder Engagement As typical of the City’s annual review process, owners of the listed properties were consulted in the preparation of this report. Environmental Review The proposed project is exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15317 (Open Space Contracts or Easements) of the CEQA Guidelines. Attachments: Attachment A: List of Williamson Act Properties 2020 Attachment B: Williamson Act Parcels Map 2020 Number APN Street Name Full Address Owner Name Williamson Act Land Ownership Zoning Acreage after Deducting Homesite Exclusion Homesite Exclusion Land Class Contract Start Date Contract Status Assessed Land Value 20201 (Assessed Information as of 6/30/2020) Assessed Land Value 20191 Assessed Land Value 20181 1 120-31- 0012 El Camino Real 103 El Camino Real Leland Stanford Jr., Univ. Board of Trustees Stanford University Land PF 0.72 No acreage deducted Prime Unknown Unchanged; contract will continue for at least another 10 years. $12,266 $11,621 $11,040 2 120-31- 0092 El Camino Real 103 El Camino Real Leland Stanford Jr., Univ. Board of Trustees Stanford University Land PF 10.00 No acreage deducted Prime Unknown Unchanged; contract will continue for at least another 10 years. $170,666 $161,684 $153,600 3 142-16- 052 Coyote Hill Road No Street Number Leland Stanford Jr., Univ. Board of Trustees Stanford University Land AC (D)36.02 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $16,453 $15,587 $14,808 4 142-16- 057 Coyote Hill Road No Street Number Leland Stanford Jr., Univ. Board of Trustees Stanford University Land AC( D)15.33 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $9,072 $8,594 $8,165 5 142-16- 064 Deer Creek Road No Street Number Leland Stanford Jr., Univ. Board of Trustees Stanford University Land AC( D)4.04 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $2,799 $2,652 $2,520 6 142-16- 065 Deer Creek Road No Street Number Leland Stanford Jr., Univ. Board of Trustees Stanford University Land AC( D)16.70 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $9,833 $9,315 $8,850 List of Parcels under Williamson Act Contract to Renew on January 1, 2021 Page 1 of 4 ATTACHMENT A Number APN Street Name Full Address Owner Name Williamson Act Land Ownership Zoning Acreage after Deducting Homesite Exclusion Homesite Exclusion Land Class Contract Start Date Contract Status Assessed Land Value 20201 (Assessed Information as of 6/30/2020) Assessed Land Value 20191 Assessed Land Value 20181 7 142-16- 069 Coyote Hill Road No Street Number Leland Stanford Jr., Univ. Board of Trustees Stanford University Land AC( D)12.48 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $7,488 $7,094 $6,740 8 182-33- 0143 Arastradero Rd 1525 Arastrader o Rd City of Palo Alto City of Palo Alto Land PF 11.42 No acreage deducted Prime Unknown Unchanged; contract will continue for at least another 10 years. $0 $0 $0 9 182-35- 008 Alexis Dr Alexis Dr Palo Alto Hills Golf and Country Club, Inc. Private Ownership OS 5.52 No acreage deducted Prime 5/1/1973 Unchanged; contract will continue for at least another 10 years. $56,020 $54,992 $53,846 10 182-35- 035 Alexis Dr 3000 Alexis Dr Palo Alto Hills Golf and Country Club, Inc. Private Ownership OS 119.92 No acreage deducted Prime 5/1/1973 Unchanged; contract will continue for at least another 10 years. $1,543,993 $1,513,719 $1,484,039 11 351-05- 024 Page Mill Rd 3845 Page Mill Rd Judith A. Block Trustee Private Ownership OS 7.72 One acre deducted for homesite Non Prime 2/16/1976 Unchanged; contract will continue for at least another 10 years. $56,535 $55,410 $54,309 12 351-05- 042 Page Mill Rd 3837 Page Mill Rd David P. and Cynthia Lautzenhei ser Trustee Private Ownership OS 9.00 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $429,571 $421,128 $412,854 13 351-05- 043 Page Mill Rd No Street Number Richard D. Guhse Trustee Private Ownership OS 19.01 No acreage deducted Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $1,333 $1,263 $1,200 Page 2 of 4 Number APN Street Name Full Address Owner Name Williamson Act Land Ownership Zoning Acreage after Deducting Homesite Exclusion Homesite Exclusion Land Class Contract Start Date Contract Status Assessed Land Value 20201 (Assessed Information as of 6/30/2020) Assessed Land Value 20191 Assessed Land Value 20181 14 351-05- 044 Page Mill Rd 3905 Page Mill Rd Michael R. Lowry Private Ownership OS 5.43 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $196,815 $192,956 $189,173 15 351-05- 045 Page Mill Rd 3895 Page Mill Rd Marc and Lesley Wilkinson Private Ownership OS 9.00 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $1,125,982 $1,103,904 $1,082,259 16 351-05- 046 Page Mill Rd 3885 Page Mill Rd William W. and Sharon T. Luciw Trustee Private Ownership OS 7.45 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $1,124,795 $1,102,725 $1,081,089 17 351-05- 047 Page Mill Rd 3875 Page Mill Rd Richard D. Kniss Trustee & Et Al Private Ownership OS 10.00 No acreage deducted Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $666 $631 $600 18 351-05- 048 Page Mill Rd 3865 Page Mill Rd Grace Carland Trustee Private Ownership OS 9.00 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $38,875 $38,094 $37,330 19 351-05- 049 Page Mill Rd 3855 Page Mill Rd Patrick K. Suppes Private Ownership OS 10.00 No acreage deducted Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $560,592 $549,600 $538,824 20 351-12- 062 Skyline Blvd 5061 Skyline Blvd Rogers Noah Private Ownership OS 10.39 No acerage deducted Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $220,735 $216,175 $662 21 351-12- 063 Skyline Blvd 5065 Skyline Blvd Robert Schulte Trustee Et al Private Ownership OS 11.35 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $517,949 $507,794 $497,838 Page 3 of 4 Number APN Street Name Full Address Owner Name Williamson Act Land Ownership Zoning Acreage after Deducting Homesite Exclusion Homesite Exclusion Land Class Contract Start Date Contract Status Assessed Land Value 20201 (Assessed Information as of 6/30/2020) Assessed Land Value 20191 Assessed Land Value 20181 22 351-12- 066 Skyline Blvd 2287 Skyline Blvd Robert Schulte Trustee Et al Private Ownership OS -0.76 No acreage deducted Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $28 $27 $25 23 351-25- 015 Page Mill Rd 4201 Page Mill Rd Bruce A Leak Private Ownership OS 10.31 One acre deducted for homesite Non Prime Unknown Unchanged; contract will continue for at least another 10 years. $1,722,842 $1,688,974 $1,655,780 24 351-12- 006 Skyline Blvd 1405 Skyline Blvd Midpenins ula Regional Open Space District Midpeninsula Regional Open Space District OS 138.59 Non Prime 2/26/1973 Contract Terminates 12/31/24 25 351-05- 050 Page Mill Rd 3849 Page Mill Rd Jeffrey A. and Mary L. Thomas Private Ownership OS 10 Non Prime 2/7/1977 Contract Terminates 12/31/26 Source: City of Palo Alto, Williamson Act Parcel Database 2020. Note 1 Note 2 Note 3 Santa Clara County Assessors Office, Website: https://www.sccassessor.org/index.php/all-situs-search?SFrom=all&SType=all&STab=address&addValue= The City of Palo Alto leases this land for public use; however, it is privately owned. Value not assessed because land is owned by public agency. List of Parcels undergoing Non-Renewal Process Page 4 of 4 Arastradero Lake Felt Lake Boronda Lake 351-12-006 351-05-050 HeritagePark Foothills Park Los Trancos Open Space Preserve Monte Bello Open Space Preserve Upper Stevens Creek Canyon County Park Skyline Ridge Open Space Preserve Long Ridge Open SP Russian Ridge Open Space Preserve Coal Creek Open Space Preserve Jasper Ridge Biological Preserve Rancho San Antonio Open Space Preserve Palo Alto Baylands Nature Preserve Foothill Open Space Preserve Arastradero Preserve Cameron Park Weisshaar Park Mayflield Park Peers Park El Palo Alto Park Lytton Plaza CogswellPlaza Scott Park Kellogg Park Bol Park Rinconada Park Bowden Park Johnson Park Eleanor Pardee Park Boulware Park Terman Park Robles Park Monroe Park Mitchell Park D Jesus Ramos Park Hoover Park Greer Park Baylands Atheletic Byxbee Park Bowling Green Henry Seale Park Sarah Wallis Park Werry Park Juana Briones Park Esther Clark Park WilliamsPark Stanford/Palo Alto Community Playing Fields San Antonio Rd 280 B o ule v ard Alameda de las P ulgas Sa nd Hi l l R o a d 2 8 0 Junipe r o Serra Boulevard P a ge Mi l l Road Ar a s t ra d er o R o a d El Cam i n o R e a l San Antonio Avenue Cha r l e s t o n R o a d G 5 M o n t e B e l l o R o a d MoodyRoad A l t a m on t Roa d O regon Expr e ssway Middlefi e l d R oad Univers 1 0 1 A l m a Street l A l p i n e R o a d Foothill Expre s s w a y H i g h w a y 2 8 0 Lo s Trancos Road Hillview East Bayshore West B ayshore Fabian El M o nte R oa d Sand Hill R oad Road MillPage Skyline Emb a rcader o R oad StanfordUniversity Park Mountain View Los AltosLos Altos Hills Santa Clara County San Mateo County Portola Valley El Camino Park This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Williamson Act Parcels Under Contract for 2020 Parcels with Non Renewal Notices Approved 0'7000' Williamson Act Parcels 2020 CITY O F PALO A L TO I N C O R P O R ATE D C ALIFOR N IA P a l o A l t oT h e C i t y o f A P RIL 16 1894 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2016 City of Palo Alto ATTACHMENT B City of Palo Alto (ID # 11580) City Council Staff Report Report Type: Consent Calendar Meeting Date: 10/5/2020 City of Palo Alto Page 1 Summary Title: Contract Amendment with Magellan Advisors Title: Approval of Amendment Number 1 to Contract Number C20176363 With Magellan Advisors, LLC, for an Integrated Fiber Expansion Approach and Acceleration of the Fiber-to-the-Premises (FTTP) Business Case and to Increase Compensation by $285,065 for a Total Not-to-Exceed Amount of $497,576 From: City Manager Lead Department: Utilities Recommendation Staff recommends that the City Council approve and authorize the City Manager, or his designee, to execute Amendment No. 1 to Contract C20176363 (Attachment A) with Magellan Advisors, LLC (Magellan), for an integrated fiber expansion approach and acceleration of the fiber-to-the-premises (FTTP) business case and to increase compensation by $285,065 for a total not-to-exceed amount of $497,576. Background On June 1, 2020, City Council approved a contract in the amount of $212,511 with Magellan for Phase 1 of the fiber network expansion plan (Council Report #11368). Phase 1 seeks a high- level design and cost estimate for fiber expansion to support Advanced Metering Infrastructure (AMI), Supervisory Control and Data Acquisition (SCADA), and wireless communication for City field staff and other City services. In addition to AMI and SCADA, the City is also pursuing a comprehensive fiber expansion strategy from an integrated cross-utility perspective in Phase 3 of the expansion plan to extend fiber-to-the premises (FTTP). The overall objective of this strategy is to evaluate the feasibility of integrating fiber network expansion into other ongoing utility capital improvement projects and programs, if practical, to fully leverage the City’s fiber asset and minimize the incremental cost to extend fiber to the premises. The four (4) phases of the Fiber Network Expansion plan are as follows: • Phase 1 seeks a high-level design and cost estimate for fiber expansion to support Advanced Metering Infrastructure (AMI), Supervisory Control, Data Acquisition (SCADA), Q CITY OF PALO ALTO City of Palo Alto Page 2 and wireless communication for City field staff and other City services; • Phase 2 seeks a detailed engineering design and cost estimate for fiber expansion to support AMI, SCADA, and wireless communication for City field staff and other City services; • Phase 3 seeks a business case and high-level design for a citywide FTTP network. The FTTP network and high-level design in the business case should expand on the fiber network for AMI, SCADA and wireless communication; and • Phase 4 seeks a detailed engineering design, cost estimate and a phased deployment approach for FTTP. Under the previous plan, each individual phase must be completed and approved by City Council before the decision is made to proceed with the next phase. With the contract amendment, staff recommends advancing some FTTP analysis and tasks from Phase 3 to Phase 1 so they can be completed concurrently. The new approach will enable staff to bring forward preliminary findings of FTTP business case analysis in conjunction with the findings and recommendations of Phase 1 within six months. Discussion On August 5, 2020, Utilities Advisory Commission (UAC) discussed the importance of broadband service and FTTP given the shift to teleworking, telepresence, and remote learning due to the pandemic (UAC Report #11468). UAC asked staff and Magellan to determine if it was feasible and effective to accelerate some FTTP analysis and tasks in Phase 3 to shorten the duration of the fiber network expansion plan and provide UAC and Council more up to date information of cost projections and alternative approaches to build out FTTP network. As a result of COVID-19 and sheltering in place, telecommunication networks have become one of the most critical infrastructures for communities. Millions of people rely on the internet daily for telework, remote learning, telemedicine, and E-commerce. Interestingly, the pandemic has also changed the way we use the internet. Previously, asymmetrical, one-way download use (i.e. video streaming) took up much of our at-home bandwidth, but now, symmetrical uploads and downloads (i.e. video conferencing) are much more prevalent. Fiber broadband is one of the technologies that can handle symmetric traffic. Even after the pandemic is over, there will continue to be a high demand for telework, remote learning, telemedicine, E-commerce, and other cloud applications. Staff and Magellan believes there are synergies in combining Phases 1 and 3 of the fiber network expansion project for the purpose of accelerating FTTP business case and developing a fully integrated fiber design plan instead of a phased approach. The contract amendment will enable Magellan to begin Phase 3 tasks in parallel to the Phase 1 tasks that are currently underway. This approach will allow Phase 1 to be completed in the same time duration of six months as the original scope yet have preliminary findings of the FTTP business case completed for review by the UAC and Council within the same timeframe. City of Palo Alto Page 3 The FTTP business case will assess how citywide FTTP would enhance City and utility services through densification of fiber from deployment of FTTP. It will also assess how the current commercial dark fiber leasing program would be impacted by citywide FTTP. This work will culminate in a broadband financial plan that assesses the financial performance of a FTTP network under different business models such as retail, partnerships, and fiber leasing. The FTTP business case will also incorporate several other scenarios that could reduce cost or create synergies with other capital projects (i.e. electric undergrounding, gas, and water main replacement and abandonment). Below is a high level workplan including resequencing and milestones. With the revised approach, staff and Magellan recommends resequencing the order of individual tasks to take advantage of synergies in combining the phases while also delivering preliminary findings and business case within the original six-month timeline. The italicized tasks (C, E, H, I, J, and K) were originally listed under Phase 3 (tasks 11-16) but are being recommended to be combined with Phase 1 (tasks 1-5) to accelerate the FTTP analysis and business case. A. Prepare draft local ordinances to support broadband deployment. (Task 5) B. Perform as-is fiber optic network map audit and reconciliation. (Task 1) C. Develop FTTP business case options to determine the viability of deploying broadband services to the Palo Alto community, to enhance City and community services, and expansion opportunities for commercial dark fiber. (Task 11) D. Prepare a high-level design and cost estimate of a fiber optic communication system for AMI, SCADA, and wireless communications for Public Safety, Public Works, and Utilities field staff. (Task 2) E. Conduct a market assessment of the local broadband and telecommunications market in Palo Alto that will inform an FTTP business case. (Task 12) F. Prepare bill of materials and cost estimates for the fiber expansion to support AMI, SCADA and internal wireless communication. (Task 3) G. Prepare a preliminary report for Phase 1 that will include presentations by the selected consultant(s) before the Utilities Advisory Commission (UAC) by the first quarter of 2021 and for the City Council at a public meeting by the second quarter of 2021. The goal of this report is to inform the UAC and City Council of the findings of the fiber expansion study and the findings of the FTTP business case and seek direction. (Task 4) H. Based on UAC and City Council direction, explore public private partnership options for FTTP deployment. (Task 14) I. Based on UAC and City Council direction, conduct needs assessment and statistically valid broadband surveys for FTTP, electric system underground district conversion projects and customer appliance electrification to determine realistic demand from Palo Alto residents and businesses. (Task 13) J. Update FTTP business case and cost estimate with findings from partnership opportunities and market assessment. (Task 15) K. Prepare a final report based on the results of the needs assessment, statistically valid broadband surveys and partnerships for presentation before the UAC and the City City of Palo Alto Page 4 Council. (Task 16) Separate RFPs will be issued for construction and construction management services if approved by the City Council for implementation in the future. Magellan will be precluded from bidding on future construction and construction management services solicitation RFPs due to conflict of interest prohibitions in California’s Government Code Section 1090. The prohibitions were communicated to the Proposers in the RFP and confirmed by staff in the demonstration interview. Resource Impact Funding for the additional FTTP analysis and tasks under revised Phase 1 of the fiber network expansion plan is available in the FY 2021 Fiber Operating and Capital Budget. The updated funding allocation below is based on the tasks associated with the electric and fiber utilities. Revised Phase 1 Milestones:Electric Fiber Total A. Local Ordinances 28,350$ 28,350$ B. Asset & Survey Assessment 74,760$ 74,760$ C. FTTP Business Case and High Level Design 179,100$ 179,100$ D. High Level Cost Estimates for AMI, SCADA, City wireless network and FTTP 49,350$ 49,350$ E. Market Assessment 11,550$ 11,550$ F. High Level Design for AMI, SCADA and City wireless network 16,800$ 16,800$ G. Report & Presentation (Preliminary)8,000$ 2,500$ 10,500$ H. Community Assessment and Survey 21,000$ 21,000$ I. Partnership Options 21,000$ 21,000$ J. FTTP Business Case and Design Update 21,000$ 21,000$ K. Report & Presentation (Final)2,500$ 8,000$ 10,500$ -$ Travel (reimbursable)2,000$ 6,432$ 8,432$ Additional Services (if needed)7,865$ 37,369$ 45,234$ Total 86,515$ 411,061$ 497,576$ As a result of synergies of combining Phases 1 and 3, staff re-negotiated high-level design and City of Palo Alto Page 5 travel expenses with Magellan which reduced total project budget by $35,200 and is reflected in the contract award amount. There was also a project reduction of $19,221 in the Phase 1 of the previous contract award. City of Palo Alto Page 6 Timeline The estimated timeline of the updated Phase 1 activities are outlined below: Stakeholder Engagement With this proposed multi-phase and integrated cross-utility approach, the Utilities Advisory Commission (UAC) will become the forum for community participation, outreach and oversight for electric undergrounding, electric system rebuilds, fiber system rebuilds, gas main replacement, electrification, fiber, and wireless planning. The UAC will facilitate recommendations to the Council and create the best opportunity to efficiently leverage the City’s fiber network with other ongoing utility capital improvement projects, environmental sustainability goals and public benefit programs. Each individual phase must be completed and approved by City Council before the decision is made to proceed with the next phase. Prior to implementation of subsequent phases, staff will return to Council with the respective tasks, costs, and contracts for approval. On August 5, 2020, Utilities Advisory Commission (UAC) discussed the importance of broadband service and FTTP given the shift to teleworking, telepresence, and remote learning due to the COVID-19 pandemic. UAC asked staff and Magellan to accelerate some FTTP analysis and tasks in Phase 3 to earlier phases to shorten the duration of the fiber network expansion plan. Q3 2020 Q4 2020 Ql 2021 Jun )JI Aug Sep Oct Nov De< Jan ~ 20-Fiber O tic Netw rk Ex ansion Plan Phase 1-Palo Alto• Melanie D. 0 000 -ProJect Manage ent • Dan H. + 1 1 -(Task 1) Fiber Reconciliation Audit I 002 -(Task 5) local Ordinance Development I Feb Mar Q22021 Apr May Jun Q3 2021 Jul 003 -(Task 2) High-Level Design for AMI, Public Works & Public Safety Wireless I 004 -(Task 12) Market Assessment I 005 -(Task 11) ITTP Business Case Development Aug Sep Q4 2021 Oct Q NOY De< 6 -(Task 3) Bill of Materials & Cost Estimates (For High-Level Design for AMI, Public Works & Public Safety Wireless) b-oo1 -(Task 4) Phase 1 Report. Presentations & Approval Process -(Including Preliminary Findings on Business Case for ITTH) ~ -(Task 14) Partnership Options c5.!m -(Task 13) Needs Assessments & Surveys b 10 -(Task 15) Incorporate Findings into ITTH Business Case b 011 -(Task 16) Presentation to UAC & City Council (Final ITTH Business Case) City of Palo Alto Page 7 Environmental Review Approval of the attached contract for design services and development of cost estimates for the fiber network expansion project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15306 (Information Collection) of the CEQA Guidelines because the services consist of data collection, research, and evaluation as part of a study leading to an action that the City has not yet approved or funded. The City will conduct an environmental assessment of subsequent project phases, as needed, prior to implementation. City of Palo Alto (ID # 11637) City Council Staff Report Report Type: Consent Calendar Meeting Date: 10/5/2020 City of Palo Alto Page 1 Summary Title: Downtown In-Lieu Parking Office Ban Temporary Extension Title: SECOND READING: Adoption of an Ordinance Amending Section 18.18.090 (Parking and Loading) of Chapter 18.18 (Downtown Commercial District) of Title 18 (Zoning) of the Palo Alto Municipal Code (PAMC) to Temporarily Extend Ineligibility of Certain Uses to Participate in the University Avenue In-lieu Parking Program (FIRST READING: May 11, 2020 PASSED: 4-3) From: City Manager Lead Department: Planning and Development Services Recommendation: Staff recommends that Council adopt the attached ordinance. Background: On May 11, 2020, the City Council adopted on first reading an ordinance extending a ban on commercial office uses above the ground floor from participating in the City’s downtown in-lieu parking program. This motion is provided below: SUBSTITUTE MOTION AS AMENDED: Council Member Kou moved, seconded by Vice Mayor DuBois to adopt the Ordinance extending a ban on commercial office uses above the ground floor from participating in the City’s downtown in-lieu parking program for a period of nine-months during which time the Planning and Transportation Commission would make a recommendation and return to Council. SUBSTITUTE MOTION AS AMENDED PASSED: 4-3 Fine, Kniss, Tanaka no City of Palo Alto Page 2 A review of the administrative record for this ordinance found that the required second reading had not occurred and is now being placed on the Council’s consent calendar. The ordinance will become effective on the 31st day following the second reading. Staff anticipates returning to the Council in advance of the nine month deadline following meetings with the Planning and Transportation Commission. Attachments: Attachment A: Ordinance Amending PAMC Section 18.18.090 to Temporarily Extend Ineligibility of Certain Uses to Participate in the University Avenue In-Lieu Parking Program (PDF) *NOT YET APPROVED* 20200330_ay_016_0160023 1 Ordinance No. ____ Ordinance of the Council of the City of Palo Alto Amending Section 18.18.090 (Parking and Loading) of Chapter 18.18 (Downtown Commercial District) of Title 18 (Zoning) of the Palo Alto Municipal Code (PAMC) to Temporarily Extend Ineligibility of Certain Uses to Participate in the University Avenue In-Lieu Parking Program 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. The City of Palo Alto (City) is a job center with among the highest housing prices and greatest jobs to housing imbalances in the Bay Area, resulting in a housing shortage that threatens the city’s prosperity, diversity, stability, environment, quality of life, and community character. B. A variety of policies result in incentives for office development over housing, including the availability of the University Avenue In-Lieu Parking Program. C. On April 1, 2019, the Palo Alto City Council adopted Ordinance 5460, which included a temporary ban on participation in the University Avenue In-Lieu Parking Program for certain uses, pending further study and recommendation from the Planning and Transportation Commission (PTC). D. Additional time is required for the City staff and the PTC to develop a recommendation regarding permanent changes to the University Avenue Parking In-Lieu Program. E. On March 4, 2020, California Governor Gavin Newsom declared a State of Emergency due to the threat of Coronavirus Disease 2019 (COVID-19). F. 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 for three weeks beginning March 17 (the Shelter-in-Place Order). The Order limits activity, travel, and business functions to only the most essential needs. G. In an effort to reduce the spread of COVID-19, the City has cancelled several meetings of the PTC in March and April 2020, eliminating opportunities for PTC consideration prior to the expiration of the initial temporary ban on May 1, 2020. *NOT YET APPROVED* 20200330_ay_016_0160023 2 H. Pursuant to Palo Alto Municipal Code section 18.80.090, the public health, safety, and welfare require that the temporary ban on participation in the University Avenue In-Lieu Parking Program be temporarily extended to maintain the status quo pending further study by City Staff and the PTC. SECTION 2. Subdivision (d) of Section 18.18.090 (Parking and Loading) of Chapter 18.18 (Downtown Commercial (CD) District) of Title 18 (Zoning) is hereby amended to read as follows: 18.18.090 Parking and Loading [. . .] (d) In-lieu Parking Provisions In connection with any expansion of the supply of public parking spaces within the CD commercial downtown district, the city shall allocate a number of spaces for use as "in- lieu parking" spaces to allow development to occur on sites which would otherwise be precluded from development due to parking constraints imposed by monetary contribution to the city to defray the cost of providing such parking. Contributions for each required parking space shall equal the incremental cost of providing a net new parking space in an assessment district project plus cost for the administration of the program, all as determined pursuant to Chapter 16.57 of Title 16 of this code, by the director of planning and community environment, whose decision shall be final. Only sites satisfying one or more of the following criteria, as determined by the director of planning and community environment, shall be eligible to participate in the in-lieu parking program: (1) Construction of on-site parking would necessitate destruction or substantial demolition of a designated historic structure; (2) The site area is less than 10,000 square feet, but of such an unusual configuration that it would not be physically feasible to provide the required on-site parking; (3) The site is greater than 10,000 square feet, but of such an unusual configuration that it would not be physically feasible to provide the required on-site parking; (4) The site is located in an area where city policy precludes curb cuts or otherwise prevents use of the site for on-site parking; or (5) The site has other physical constraints, such as a high groundwater table, which preclude provision of on-site parking without extraordinary expense. *NOT YET APPROVED* 20200330_ay_016_0160023 3 Office uses above the ground floor shall not be eligible to participate in the in-lieu parking program for one year two years from the effective date of Ordinance No. 5460, from May 2, 2019 through May 1, 2020 2021. [. . .] SECTION 3. 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 4. The Council finds that the potential environmental impacts related to the Housing Workplan Ordinance, including the amendments enacted herein were analyzed in the Final EIR for the Comprehensive Plan Update, which was certified and adopted by the Council by Resolution No. 9720 on November 13, 2017. This Ordinance is consistent with and implements the program evaluated in the EIR. /// /// /// /// /// /// /// /// /// /// /// /// *NOT YET APPROVED* 20200330_ay_016_0160023 4 SECTION 5. This Ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Attorney City Manager ____________________________ Director of Planning & Development Services 1 of 1 TO: HONORABLE CITY COUNCIL FROM: JONATHAN LAIT, DIRECTOR PLANNING & DEVELOPMENT SERVICES DATE: OCTOBER 5, 2020 SUBJECT: AGENDA ITEM 7 - SECOND READING: ADOPTION OF AN ORDINANCE AMENDING SECTION 18.18.090 (PARKING AND LOADING) OF CHAPTER 18.18 (DOWNTOWN COMMERCIAL DISTRICT) OF TITLE 18 (ZONING) OF THE PALO ALTO MUNICIPAL CODE (PAMC) TO TEMPORARILY EXTEND INELIGIBILITY OF CERTAIN USES TO PARTICIPATE IN THE UNIVERSITY AVENUE IN-LIEU PARKING PROGRAM (FIRST READING: MAY 11, 2020 PASSED: 4-3) Staff has revised Attachment A, the draft ordinance, of the staff report to correct the end-date of the ordinance to accurately reflect Council’s motion of a nine-month extension. The ordinance attached to the staff report reads as follows: Office uses above the ground floor shall not be eligible to participate in the in-lieu parking program for one year two years from the effective date of Ordinance No. 5460, from May 2, 2019 through May 1, 2020 2021. The attached corrected ordinance language reads as follows: Office uses above the ground floor shall not be eligible to participate in the in-lieu parking program for one year from the effective date of Ordinance No. 5460, from May 2, 2019 through May 1, 2020 through February 1, 2021. _______________________ _________________________ Jonathan Lait Ed Shikada Director of Planning & Development Services City Manager 7 DocuSign Envelope ID: 2FC81696-D947-4224-B03C-DE07FAA55B79 *NOT YET APPROVED* 20200330_ay_016_0160023 1 Ordinance No. ____ Ordinance of the Council of the City of Palo Alto Amending Section 18.18.090 (Parking and Loading) of Chapter 18.18 (Downtown Commercial District) of Title 18 (Zoning) of the Palo Alto Municipal Code (PAMC) to Temporarily Extend Ineligibility of Certain Uses to Participate in the University Avenue In-Lieu Parking Program 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. The City of Palo Alto (City) is a job center with among the highest housing prices and greatest jobs to housing imbalances in the Bay Area, resulting in a housing shortage that threatens the city’s prosperity, diversity, stability, environment, quality of life, and community character. B. A variety of policies result in incentives for office development over housing, including the availability of the University Avenue In-Lieu Parking Program. C. On April 1, 2019, the Palo Alto City Council adopted Ordinance 5460, which included a temporary ban on participation in the University Avenue In-Lieu Parking Program for certain uses, pending further study and recommendation from the Planning and Transportation Commission (PTC). D. Additional time is required for the City staff and the PTC to develop a recommendation regarding permanent changes to the University Avenue Parking In-Lieu Program. E. On March 4, 2020, California Governor Gavin Newsom declared a State of Emergency due to the threat of Coronavirus Disease 2019 (COVID-19). F. 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 for three weeks beginning March 17 (the Shelter-in-Place Order). The Order limits activity, travel, and business functions to only the most essential needs. G. In an effort to reduce the spread of COVID-19, the City has cancelled several meetings of the PTC in March and April 2020, eliminating opportunities for PTC consideration prior to the expiration of the initial temporary ban on May 1, 2020. DocuSign Envelope ID: 2FC81696-D947-4224-B03C-DE07FAA55B79 *NOT YET APPROVED* 20200330_ay_016_0160023 2 H. Pursuant to Palo Alto Municipal Code section 18.80.090, the public health, safety, and welfare require that the temporary ban on participation in the University Avenue In-Lieu Parking Program be temporarily extended to maintain the status quo pending further study by City Staff and the PTC. SECTION 2. Subdivision (d) of Section 18.18.090 (Parking and Loading) of Chapter 18.18 (Downtown Commercial (CD) District) of Title 18 (Zoning) is hereby amended to read as follows: 18.18.090 Parking and Loading [. . .] (d) In-lieu Parking Provisions In connection with any expansion of the supply of public parking spaces within the CD commercial downtown district, the city shall allocate a number of spaces for use as "in- lieu parking" spaces to allow development to occur on sites which would otherwise be precluded from development due to parking constraints imposed by monetary contribution to the city to defray the cost of providing such parking. Contributions for each required parking space shall equal the incremental cost of providing a net new parking space in an assessment district project plus cost for the administration of the program, all as determined pursuant to Chapter 16.57 of Title 16 of this code, by the director of planning and community environment, whose decision shall be final. Only sites satisfying one or more of the following criteria, as determined by the director of planning and community environment, shall be eligible to participate in the in-lieu parking program: (1) Construction of on-site parking would necessitate destruction or substantial demolition of a designated historic structure; (2) The site area is less than 10,000 square feet, but of such an unusual configuration that it would not be physically feasible to provide the required on-site parking; (3) The site is greater than 10,000 square feet, but of such an unusual configuration that it would not be physically feasible to provide the required on-site parking; (4) The site is located in an area where city policy precludes curb cuts or otherwise prevents use of the site for on-site parking; or (5) The site has other physical constraints, such as a high groundwater table, which preclude provision of on-site parking without extraordinary expense. DocuSign Envelope ID: 2FC81696-D947-4224-B03C-DE07FAA55B79 *NOT YET APPROVED* 20200330_ay_016_0160023 3 Office uses above the ground floor shall not be eligible to participate in the in-lieu parking program for one year from the effective date of Ordinance No. 5460, from May 2, 2019 through May 1, 2020 through February 1, 2021. [. . .] SECTION 3. 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 4. The Council finds that the potential environmental impacts related to the Housing Workplan Ordinance, including the amendments enacted herein were analyzed in the Final EIR for the Comprehensive Plan Update, which was certified and adopted by the Council by Resolution No. 9720 on November 13, 2017. This Ordinance is consistent with and implements the program evaluated in the EIR. /// /// /// /// /// /// /// /// /// /// /// /// DocuSign Envelope ID: 2FC81696-D947-4224-B03C-DE07FAA55B79 *NOT YET APPROVED* 20200330_ay_016_0160023 4 SECTION 5. This Ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Attorney City Manager ____________________________ Director of Planning & Development Services DocuSign Envelope ID: 2FC81696-D947-4224-B03C-DE07FAA55B79 Certificate Of Completion Envelope Id: 2FC81696D9474224B03CDE07FAA55B79 Status: Completed Subject: Please DocuSign: PDS At Places Memo Council Oct 5 Agenda Item No 7 Source Envelope: Document Pages: 5 Signatures: 2 Envelope Originator: Certificate Pages: 2 Initials: 0 Madina Klicheva AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Madina.Klicheva@CityofPaloAlto.org IP Address: 24.7.54.36 Record Tracking Status: Original 9/29/2020 1:46:50 AM Holder: Madina Klicheva Madina.Klicheva@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 Jonathan Lait Jonathan.Lait@CityofPaloAlto.org Interim Director Planning and Community Environment City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Uploaded Signature Image Using IP Address: 199.33.32.254 Sent: 9/29/2020 1:48:08 AM Viewed: 9/30/2020 8:50:29 AM Signed: 9/30/2020 9:21:37 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign 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: 9/30/2020 9:21:39 AM Viewed: 9/30/2020 10:46:40 AM Signed: 9/30/2020 10:47:18 AM 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 Beth Minor Beth.Minor@CityofPaloAlto.org City Clerk City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 9/30/2020 10:47:20 AM Electronic Record and Signature Disclosure: Carbon Copy Events Status Timestamp Not Offered via DocuSign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 9/30/2020 10:47:20 AM Certified Delivered Security Checked 9/30/2020 10:47:20 AM Signing Complete Security Checked 9/30/2020 10:47:20 AM Completed Security Checked 9/30/2020 10:47:20 AM Payment Events Status Timestamps City of Palo Alto (ID # 11548) City Council Staff Report Report Type: Action Items Meeting Date: 10/5/2020 City of Palo Alto Page 1 Summary Title: City Council First Reading: ADU Ordinance Title: PUBLIC HEARING/LEGISLATIVE: Adoption of Several Ordinances Regarding Accessory Dwelling Units and Junior Accessory Dwelling Units Amending Palo Alto Municipal Code Titles 16 (Building) and 18 (Zoning); Amendments Include Repealing Section 18.42.040 (Accessory and Junior Accessory Dwelling Units) and Adding a new Chapter 18.09 (Accessory Dwelling Units and Junior Accessory Dwelling Units); and Updating Chapters 18.04 (Definitions), 16.58 (Development Impact Fees), 16.04 (California Building Code), 16.06 (California Residential Code), and 16.14 (California Green Building Standards Code). Environmental Assessment: Exempt From Review Under the California Environmental Quality Act (CEQA) Pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines Sections 15061(b)(3), 15282(h), 15301, 15302 and 15305 (CONTINUED FROM AUGUST 17, 2020) From: City Manager Lead Department: Planning and Development Services Recommendation Staff recommends the City Council adopt the attached Ordinances amending Palo Alto Municipal Code Titles 16 (Building) and 18 (Zoning) to amend regulations for Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs). Executive Summary On January 1, 2020, California’s new ADU and JADU laws went into effect. The Palo Alto City Council adopted an Interim Urgency Ordinance (Attachment B) on January 13, 2020 to comply with the new laws. The Interim Ordinance, in effect through January 2021, was intended to make minimal changes to the City’s existing ADU regulations, while staff prepared a more comprehensive update. The Updated ADU Ordinance (Attachment A) is intended to streamline and simplify Palo Alto’s ADU/JADU regulations, ensure compliance with state laws, and City of Palo Alto Page 2 promote the production of ADUs and JADUs in Palo Alto. The Planning and Transportation Commission (PTC) recommended approval of the Updated ADU Ordinance related to the Title 18 changes within its purview. The Updated ADU Ordinance creates PAMC Chapter 18.09, providing development standards for all types of ADUs and JADUs. The chapter replaces the ADU and JADU sections from Chapter 18.42, in a more user-friendly format. The updated ordinance goes further than strictly required by State legislation in some cases, to promote development of housing units. In addition, Planning and Development Services staff have proposed several minor updates to the local regulations for the California Building Code, California Residential Code, and California Green Building Code as they relate to ADUs. Specifically, the proposed ordinances provided as Attachments D, E and F amend the following PAMC Title 16 (Building) Sections: o 16.04.300 of Chapter 16.04 (California Building Code, Attachment G) o 16.06.240 of Chapter 16.06 (California Residential Code, Attachment H) o 16.14.080 of Chapter 16.14 (California Green Building Standards Code, Attachment I) Proposed revisions to PAMC Chapters 16.04.300 and 16.06.240 of the California Building Code and the California Residential Code Ordinances are to provide clarity related to conversions of existing accessory buildings, such as garages and non-habitable storage structures into Accessory Dwelling Units (ADUs). Section 16.14.080 is proposed as new code section of the California Green Building Standards Code Ordinance (PAMC Chapter 16.14). Additional minor edits to Chapter 16.14 were created to align with Section 16.14.080. These changes consolidate the ADU and JADU requirements for green building compliance to provide clarity and streamlines the ADU and JADU green building requirements. Following Council adoption of the attached ordinances modifying Titles 16 and 18, staff will continue working toward increasing the production of ADUs and JADUs. Efforts may include: • process initiatives to simplify the review of these project types, • use of SB2 funding to design pre-approved ADU/JADU designs, • establishment of an over-the-counter approval process, and • ongoing community outreach efforts, including updates to our webpages. Background Overview and Role of Palo Alto’s ADUs ADUs provide much needed housing for Palo Altans and efforts to meet its Regional Housing Needs Allocation (RHNA) targets. Over the last several years, the number of ADUs permitted and constructed in Palo Alto has steadily increased. The upward trend is documented in the City of Palo Alto Page 3 most recent ADU quarterly report in the Council packet for August 17, 2020.1 For the past three years, the data shows that detached ADUs are the most prevalent application type (130 filed in total), followed by attached ADUs (60 filed in total). JADUs are a very distant third (3 filed). Staff will continue tracking production and include the data in the quarterly reports to Council. The proposed ordinance may increase ADU development because the ordinance proposes additional incentives and streamlines regulations. Staff expect ADU development will be advanced further in the upcoming Housing Element update (must be updated by January 2023). AB 671 requires that Housing Elements incentivize and promote ADUs at all income levels. State Laws The State of California continues to propose legislation to promote ADU production. In October 2019, Governor Newsom signed several bills related to ADUs and JADUs (AB 68, AB 881, SB 13). These new laws became effective on January 1, 2020, and invalidated local ordinances that did not comply with the new standards. For expediency, on January 13, 2020, the Council adopted an Interim Urgency Ordinance, incorporating state laws to the minimum extent necessary. The Interim Urgency ordinance is effective until January 31, 2021 or until Council adopts an updated ‘permanent’ ordinance. Together, the state law, found in Government Code section 65852.2 (Attachment F), requires: o One detached ADU and one JADU are permitted by right on a single-family lot, subject to certain constraints. o ADUs are allowed by right in multi-family and mixed-use zones. Up to two detached ADUs, plus conversion of uninhabited spaces for multiple ADUs (up to 25% of units in multifamily buildings). o There is no minimum lot size for ADUs. o A zero setback is allowed if converting an existing structure at property line. o Maximum four-foot interior side and rear setbacks for newly constructed ADUs. o Lot coverage, floor area ratios (FARs) or open space requirements must allow at least an 800 sf ADU. o Minimum 16 ft. height allowed. o Cannot set maximum square footage less than 850 for one-bedroom ADU, or 1,000 sf for two+ bedrooms. o JADUs are no longer limited to smaller kitchen appliances and sewer connections. o 60-day permit processing timeline. o No replacement parking is required for garage conversions to ADU. o No impact fees on ADUs less than 750 sf; if larger, impact fees to be proportional to main house. o 5-year moratorium on local owner-occupancy restrictions until 1/1/25. 1 ADU Report: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=51733.4&BlobID=77912 City of Palo Alto Page 4 o Owners may request a 5-year stay of building code enforcement available on unpermitted ADUs if they meet health and safety standards. o ADUs count towards achieving a jurisdiction’s Regional Housing Needs Allocation (RHNA). o No short-term rentals of ADUs or JADUs. PTC Action On May 27, 2020, the Planning and Transportation Commission (PTC) recommended the Accessory Dwelling Unit (ADU) ordinance (voting 4-2-1, Commissioners Lauing and Summa voting no, Commissioner Riggs absent).2 Note that the PTC is not required to review changes to Title 16, so the PTC did not review the proposed changes to Chapters 16.04, 16.06, 16.16, and 16.58. PTC also recommended Council provide direction to staff to research and find ways to enable ADUs to be used as Affordable units. Title 16 Revisions Revisions to PAMC Chapters 16.04 and 16.06 for the California Building Code and the California Residential Code Ordinances are proposed to provide clarity related to conversions of existing accessory buildings, such as garages and non-habitable storage structures into Accessory Dwelling Units (ADUs). Sections 16.04.300 and 16.06.240 both apply to the Table 1809.7 for Prescriptive Footings Supporting Walls for Light-Frame Construction and has been revised to include an entry for ADU Conversions. This additional entry allows the existing smaller footing size for Group U Occupancies, (i.e., garages and non-habitable structures) to be maintain when converting these structures to ADUs. This can occur provided that the existing footing is not deteriorating and is deemed structurally sound by the designer, architect, or engineer of record for the ADU conversion. Section 16.14.080 of the California Green Building Standards Code Ordinance has been created as a new section in Chapter 16.14 that consolidates the ADU and JADU requirements for green building compliance. Previously, the ADU requirements were listed in multiple sections based on Mandatory, Tier 1 or Tier 2 threshold requirements for residential construction. This revision will provide clarity and streamlines the ADU and JADU green building requirements. For example, staff has proposed restructuring the Cool Roof and Recycled Content requirements from Green Building prescriptive mandatory to an elective for Tier 1 projects. Section 16.58 of the Palo Alto Municipal Code regulates development impact fees for ADU/JADUs. New state code requirements only allow that development impact fees be charged for units that are greater than 750 square feet or more. The current code still reflects Palo Alto’s regulations from before the new state code requirements which did not have a square 2 May 27, 2020 Planning and Transportation Commission Meeting materials; Staff report with ordinance link: https://www.cityofpaloalto.org/civicax/filebank/documents/76826. Video link: https://midpenmedia.org/planning-transportation-commission-63-5132020-2/. City of Palo Alto Page 5 footage threshold for exempting certain units for fees. This change, reflected in Attachment A, is made to bring the City’s current code into conformance with the new requirements. Additional Efforts to Support ADU Development The proposed ordinance is part of a multi-prong approach to streamlining. Additional efforts include (1) creation of an ADU checklist for applicants, (2) developing a user-friendly submittal guide for building professionals and homeowners, and (3) consolidating ADU information onto a central location on the City’s ADU website. City Council previously supported receipt of SB 2 grant funds to develop ADU prototypes and application packages to facilitate expedited approvals. By developing packages that include preapproved drawings, applicants can show the design on their site plan and have the drawings as attachments. This could help applicants to save on the costs for architect/designer services. This project will begin later this year. Discussion Staff and the PTC recommend the proposed ordinance, which simplifies the code and encourages ADU/JADU development. Ordinance Structure The ordinance is divided into two primary sections. The first, proposed section 18.09.030, provides regulations governing ADUs and JADUs to which the City cannot apply local regulations. The second, proposed section 18.09.040, applies to ADUs over which the City can exert some local control (i.e. ADUs that do not fit into the categories set forth in section 18.09.030). For these ADUs, the ordinance proposes, to a limited extent, local regulations like daylight plane, tree preservation, and privacy. While many property owners may choose the path prescribed by state law, some may want to deviate from those choices to add additional space or achieve some other flexibility. Topic Areas The following section describes the changes the PTC recommended in terms of seven topic areas. These are areas where the proposed ordinance goes beyond the state law to promote ADUs/JADUs. These also represent differences from the Interim Urgency Ordinance. Each section begins with a short summary that is italicized to improve readability, followed by a narrative and more technical description of the proposed ordinance. 1. Allowing Either an Attached or a Detached ADU to be Combined with a JADU Staff and the PTC recommend the proposed ordinance to allow the development of JADUs that coincide with the development of attached ADUs as well as detached ADUs, regardless of the size of the ADU. City of Palo Alto Page 6 Government Code section 65852.2(e)(1)(B) requires cities to allow a single-family lot to develop one qualifying detached ADU up to 800 square feet, and one JADU of up to 500 square feet. Whether the unit is detached from the primary house or not, the same amount of floor area could be present on the property. Differentiating between attached or detached is unnecessarily restrictive. Each unit must a have separate, exterior entrance; and only JADUs can have an interior communicating opening (doorway) to a primary home. Therefore, concerns about allowing a house to grow without providing additional housing units are somewhat mitigated. One downside of this policy is that the size of homes could become larger, with greater massing and without a clear delineation of primary unit and secondary units. 2. Privacy and Two-Story ADUs Under state law, property owners are able to create two-story ADUs, which previously were only allowed in 2 residential zones in Palo Alto (Residential Estate and Open Space). In the proposed ordinance, staff propose some measures to restrict two-story ADUs. If a new attached ADU is constructed as part of a newly built home, it must be approved if it follows the zoning development standards of that home, including additional height that would be able to support a two-story unit. If an ADU were created in an existing portion of a two-story home, it could be located on the second floor or span from the ground floor to the upper floor, provided it maintained exterior access and had no internal connection between the units. It is important to note new construction of full two-story, detached units is not likely feasible within a 16-foot height limit, which is the proposed maximum height of an ADU. It would be difficult to contain the necessary floor-to-ceiling clearance and roof assembly for 2 floors within 16 feet for the state mandated units. This ceiling height can, however, support “loft” spaces. Previous ADU ordinances, including the interim urgency ordinance, maintained a 17-foot height limit, but that could provide opportunities to build two story unit with no privacy measures. As such, staff suggests reducing it to 16 feet to provide some protection against these unit types – even though privacy measures cannot be applied to state mandated units. While the privacy impacts of these units may be cause for concern for neighbors of such units, the City of Palo Alto is unable to impose privacy requirements for units described in proposed PAMC 18.09.030. In addition, the City would not be able to prevent ADUs that follow the state requirements from having a loft space, which was previously not allowed. Instead, the proposed ordinance clarifies that such loft space counts as floor area for an ADU. Staff and the PTC recommend the proposed ordinance to allow loft space in units for which the City can apply local regulations. By creating a path towards a two-story ADU—an ADU with a City of Palo Alto Page 7 loft—that incorporates measures to enhance privacy, the City hopes to encourage ADUs that minimize concerns and conflicts with neighbors. The proposed privacy protections are: 1) Units must offset windows to be out of line with an adjacent property’s windows. 2) All windows facing an adjoining property must utilize obscured glazing. 3) Any second floor or loft, non-egress window facing an adjoining property must have a minimum five-foot sill height. These policies are proven techniques for privacy protection drawn from the Individual Review Guidelines. These would also be easy to implement and support the state requirement that all ADUs be reviewed ministerially. 3. Parking and JADUs The draft ordinance allows for a JADU conversion of a portion or all, of an existing garage that is attached to an existing home. The covered parking spaces displaced by the JADU would be required to be replaced on site as uncovered parking spaces. The replacement parking spaces could be placed within the required front or street side yards of a property. A major reason ADU applications increased following the Council adoption of ADU regulations in 2017 was the relaxation of parking space requirements. Parking requirements for JADUs however, were not changed nor was a parking replacement opportunity allowed. Previously, JADUs were only allowed to be conversions of an existing bedroom. Now, State law enables homeowners to build a JADU and an ADU within a brand-new home. Therefore, the interpretation that a JADU is only a converted bedroom is inconsistent. The draft ordinance allows for a JADU conversion of a portion or all, of an existing garage that is attached to an existing home. The covered parking spaces displaced by the JADU would be required to be replaced on site as uncovered parking spaces. The replacement parking spaces could be placed within the required front or street side yards of a property. In the end, residents can choose whether they want to convert the garage to an ADU or JADU. Allowing garages to convert into JADUs creates an incentive and is of great interest to residents. Staff believes there will be increased development of JADUs. Staff has heard concerns from residents that the new local and State regulations may increase vehicle traffic and the presence of vehicles parked on public streets in residential neighborhoods. With the opportunity for three separate housing units on a single-family zoned property, more individuals may be living on a site and each may own a car. While this is also a concern to staff, individually, these units do not have parking requirements as dictated by the State. By allowing JADUs to benefit from the conversion allowances already afforded to ADUs, City of Palo Alto Page 8 the ordinance may increase the likelihood of additional vehicles present in a neighborhood. However, maintaining uncovered, on-site parking would help alleviate this issue. 4. Noise Producing Equipment The draft ordinance proposes allowing noise producing equipment for all units to follow their respective setback requirements. This would remove one of the site planning challenges homeowners face when designing an ADU. The City will still have mechanisms in place to protect neighbors from excessive noise. This is a change from the existing Palo Alto Municipal Code, which prohibits noise producing equipment within the standard property setbacks. Under current regulations, noise producing equipment would need to be placed outside of the minimum setbacks for the property.3 State law changes the minimum setback to four feet for ADUs. Updating the location requirements for noise-producing equipment will not diminish the protection neighbors have from excessive noise as other means can mitigate noise levels. First, newer technology has resulted in quieter equipment. For example, commonly proposed mini- split AC systems used on detached structures have a decibel range between 45 and 60 decibels (dBs). Second, for louder equipment, many manufacturers can provide sound blankets, which typically reduce the decibel rating five or more decibels. The City can require homeowners to utilize a sound blanket or use quieter, new equipment where feasible. Finally, regardless of these changes, the noise ordinance still requires that ambient noise in residential neighborhoods not exceed 66 dBs at the property line, so it is in the interest of an ADU owner to use quiet, well-placed equipment. 5. Removing the Deed Restriction Process for ADUs The proposed ordinance eliminates the requirement of recording deed restrictions for ADUs. The elimination of the deed restriction removes a lengthy recordation process and streamlines the ADU approval process. State law requires deed restrictions for JADUs. Previously, deed restrictions included: (1) the owner may not rent the property for less than 30 days, (2) the owner may not sell the properties separately, and (3) the owner had to occupy the property. The proposed ordinance instead codifies requirements for the rental and sale of an ADU. Note that state law no longer allows an owner occupancy requirement. Code Enforcement staff can, using the code, address any issue related to a homeowner not following rental or sale requirements. Deed restrictions do offer more clarity to future property owners regarding restrictions placed on ADUs. Staff believe, however, that both disclosure 3 Minimum R-1 setbacks range from six feet to eight feet for interior side setbacks, 16 feet for a street side setback, and 20 feet or more (notwithstanding special setbacks) for front and rear setbacks. City of Palo Alto Page 9 during the property acquisition process and due diligence on a homebuyer’s part will keep all parties informed. 6. Providing a Uniform Exemption of ADU Square Footage from FAR, Lot Coverage, and Maximum House Size Under State rules, the City must allow floor area over a property’s maximum allowable floor area (calculated with respect to site area as a Floor Area Ratio (FAR) maximum) to the extent necessary to construct an 800 sq. ft. ADU. This requirement was incorporated into both the Interim Ordinance and the proposed ordinance without modification. Thus, properties would be entitled to different amounts of exempt ADU square footage depending on the amount of FAR available for the property after accounting for the primary residence. This can be illustrated by imagining a 6,000 square foot R-1 lot, which would allow up to 2,550 sq. ft. of floor area. A homeowner with a 2,000 square foot primary residence on this property would be entitled to exempt up to 250 square feet of an 800 square foot ADU (550 remaining square feet + 250 square feet over the maximum FAR = 800 sf). In a second scenario, if the primary residence were 2,550 square feet, the property owner would be entitled to exempt all 800 square feet of the ADU. In a final scenario, if the primary residence were less than 1,750 square feet, ADU floor area exemption would not be required or provided. This creates an incentive for a property owner to build a primary home to the maximum FAR before applying for an ADU. This could have the effect of encouraging tear-down remodels. This approach to ADU square footage also makes it more difficult to construct an ADU over 800 sq. ft, as the entire square footage of the ADU would need to be accommodated within allowable FAR without any exemption. To avoid these effects and to encourage ADU production, staff and the PTC recommend the ordinance provide a uniform “bonus” for ADUs: only square footage above 800 sq. ft. would count towards the floor area maximum (FAR, lot coverage, or maximum house size). This approach could make it easier for the public to understand how these limits can impact what is allowed and make it easier for staff to implement. It also would remove a potential incentive to demolish an existing residence to max out FAR before building an ADU. Finally, this approach would allow a property owner seeking to build a larger ADU to do so if there is additional FAR available for the site. 7. Providing a 500 Square Foot Floor Area Exemption for JADUs Staff and the PTC recommend the updated ordinance, which includes an allowance for JADUs to exempt up to 500 sq. ft. of floor area—similar to the exemption for ADU floor area. For homeowners seeking to create both an ADU and JADU, staff and the PTC propose limiting the City of Palo Alto Page 10 total exemption by requiring the 800 sq. ft provided by the state to be shared between the ADU and JADU. In this manner, a combination of square footage could be attributed to both units, but it would not limit someone from utilizing all of it to build an 800 sq. ft. ADU. Conversely, if there were not enough square footage left over to build a JADU, then the applicant would resort to converting a garage or another part of their primary residence. This code change would provide residents the opportunity to build both an ADU and JADU without having to convert the primary home’s allowable floor area. With these proposed changes, staff believes that it will help to support increased development of accessory units within the City. As identified earlier, staff believes that treating the 800 square foot allowance provided by the state as a ‘bonus’ will simplify implementation for staff and the public of the state’s requirements. Additionally, staff believes it will provide flexibility for homeowners to choose how large or small a unit to build without getting trapped in a sequence-based barrier that would drive more homeowners to demolish everything in order to capture what the state allows them to do. This proposed policy seeks to promote JADUs beyond what is required. State law does not create any specific floor area allowances for JADUs. In 2017-2018, the City updated its regulations to allow for bonus floor area for ADUs and JADUs (220 sq. ft. and 50 sq. ft. bonus floor area for ADUs and JADUs, respectively). While these changes greatly helped to spur the development of ADUs, JADU remains low. (2 applications). Policy Implications The following topics were presented to the PTC and discussed on May 27, 2020. The PTC did not recommend including them in the Updated ADU ordinance: 1. Treatment of secondary street frontages 2. Allowing doorways between an ADU and the primary unit 3. Increasing the exemption for development impact fees 4. The flood zone, screening, and grading and drainage 5. Allowing two-story ADUs 6. Enabling basements at a four-foot setback for accessory/junior dwelling units 7. Proposing changes to the City’s Green Building Program for accessory units Should the City Council choose to address any of these issues, staff can amend the Updated Ordinances. Treatment of Secondary Street Frontages Several provisions of the new state ADU laws provide that cities cannot impose “side and rear” setbacks of more than four feet for ADUs. For the first half of this year, the City interpreted this requirement to refer to interior side and rear lot lines only. In other words, secondary street City of Palo Alto Page 11 frontages or “street-side” lot lines were still subject to the setbacks provided in the underlying zoning (generally 16-feet). This additionally would apply to streets that have a special setback on the street-side frontage (for example homes on corner lots). Following input from State Department of Housing and Community Development (HCD), staff have applied the four-foot setback rule to all “side and rear” lot lines, including secondary street frontages. Staff has learned, informally, that HCD interprets the four-foot setback rule to apply to secondary street frontages as well as interior side and rear lot lines. Staff believe this is not the only possible reading of the statute. The terms “side setback” and “rear setback” are not defined in state law; these are primarily creatures of local zoning ordinances. While many jurisdictions refer to a secondary street frontage as a “street-side” yard, others call this a secondary front yard and consider corner lots to have two front yards. Given this variation at the local level, the ADU statute’s reference to side and rear setbacks could be interpreted to mean only interior setbacks. In addition, there are important policy reasons for increased setbacks on street frontages, including maintaining visibility for safety and consistent urban design practices across the streetscape. HCD’s position on this issue is significant because the department is charged with reviewing all local ADU regulations for compliance with the state law. If HCD finds that a local ordinance is out of compliance, a local agency has 30 days to respond by either amending its ordinance or adopting findings to explain why it believes the ordinance does in fact comply with state law, despite HCD’s contrary opinion. If an agency chooses to adopt such findings, the ultimate question of compliance with state law would likely be resolved by a court. Staff is looking to receive input on whether City Council wishes to accept HCD’s interpretation of the setback issue, which staff adopted as a practice beginning in June. There are policy options to encourage increased setbacks for secondary street frontages in the instance City Council does not support a four-foot setback, but was willing to consider reducing corner lot impacts which staff has considered below: Removing Requirement to Convert “Existing” Garages/Carports Current state and local regulations require that there must be an “existing” garage or carport in order to benefit from reduced parking requirements. In maintaining this requirement, it enshrines that a structure must first be built and then later modified in order to benefit from the reduced parking requirements. From a process standpoint, this would mean applying for two different permits with the City; each with their own plans, inspections, plan check fees, etc. This creates a two-step process for applicants seeking to develop ADUs that can add time, money, and barriers to unit production. Requiring this additional process, does not necessarily add value to the quality of an application if the homeowner is intent on building a second unit. In the end, it results in more time for staff to review a project at two different stages where the City could instead provide this as an incentive for properties to build units that are compliant City of Palo Alto Page 12 with the City’s goals; namely, maintaining the street-side setback on a corner lot. Providing Additional Bonus FAR and/or Reduced Setbacks for Unit Development Another incentive to consider would be to provide for additional floor area or more flexible setbacks along the rear and side yards than four-feet. Given that corner lots present design challenges, increasing any bonus square footage may not eliminate the barriers inherent in developing a corner lot property. However, by providing a more reduced setback along the rear and interior side yards (e.g. no setbacks for accessory units on a corner lot) residents may feel more compelled to develop units in conformance with Palo Alto’s intended neighborhood context. Allowing the Main House to Encroach to a 10 Foot Setback if Only Doing an ADU/JADU A third incentive to consider would be to allow the main house to have a reduced setback only under the condition that an accessory unit is also developed on the property. Staff believes that providing this incentive will help to simultaneously encourage accessory unit development and provide additional flexibility to develop corner lots, while also supporting the City’s streetscape and urban design principles established by the front yard setback requirement. The transition from 10 feet to 20 feet will be less stark than a transition from four feet to 20 feet. It would be important to ensure that this allowance applied to a standard street-side setback as well as one that had a special setback. Having a consistent approach would lead to a simplified application process for residents and staff. Any one of these polices, or combination thereof, could provide an adequate enough incentive for a homeonwer to not propose a four foot setback. However, if City Council wishes to defer to the four foot setback, as suggested by HCD, then these items need not be discussed. It would instead be important to identify that these reduced setbacks are applicable to standard corner lots as well as those with a special setback along the street-side frontage. Resource Impact The impact to the City’s resources as a result of adopting this ordinance would be minimal. Given that City staff established the proposals in this ordinance, there was no cost for bringing on a consultant or other group to manage this project. At this point, the resources expended would be limited staff trainings on the materials, implementation and communication of this ordinance to the public, and staff time spent updating checklists or webpage information. After ordinance adoption, any cost that would be incurred by the City would be driven by staff’s proposal to research model/prototype unit development. The City has been awarded SB 2 grant funding to be able to financially support this project so that there would no General Fund impact for selecting a consultant to perform the work. City of Palo Alto Page 13 Timeline The City must adopt a new ADU ordinance by January 31, 2021 to replace the urgency ordiane adopted earlier this year. Before a new ordinance can take effect, a second reading of the attached ordinance must be scheduled. Following the adoption of the ordinance, staff will advance additional ADU activities identified for the SB 3 grant monies. This would include developing prototype units as well as checklists, digital resources, and process improvements. Stakeholder Engagement In February 2020, staff reached out to a list of 15 individuals, including local architects and other frequent Development Center applicants, with a 10-question survey. The ten questions requirements/review process. The list of survey questions and responses is Attachment C to this report. Additionally, other City staff members who commonly review ADU applications survey and staff responses are discussed in the Discussion section of this report. A summary of the issues and staff responses to them is in Attachment D. Staff attended a community meeting on ADUs May 19, 2020, presented slides regarding how Palo Alto had implemented the new State laws, and answered questions. The Zoom meeting was sponsored by Palo Alto Forward with multiple panelists. Staff’s presentation was attached to the PTC report. Following the release of the City Council agenda slated for August 17, 2020, members of the public were able to access the proposed ADU Ordinance and staff report. A group of local architects established a group, which they named the “ADU Task Force”. The group reached out to staff regarding the proposed ordinance seeking clarification, suggesting edits, and making recommendations. Staff met with the group twice for several hours in late September to review their feedback on the proposed ordinance. Overall, the group applauded the efforts to create a more streamlined ADU development process that sought to align local policies and practices with state laws, while also offering local incentives to promote ADU development. Some issues were resolved through discussion and explanation. In some areas, the City Attorney provided non-substantive edits to the ordinance in order to further clarify the language for readers of the text and reduce confusion. This progress notwithstanding, areas of disagreement remain. In some areas, the architects group disagrees with the staff’s interpretations of State code.4 In other areas, the group proposes ADU policies that, in their professional experience, will make it easier for property owners to construct ADUs. 4 For example, the groups disagree on whether state law requires the City to treat 800 square feet as a “bonus,” and whether the City can impose its daylight plane and tree preservation regulations on those ADUs for which local regulations apply. All these issues were addressed in the Interim Urgency Ordinance adopted by the City Council in January 2020, which was transmitted to HCD for review. During informal conversations, HCD did not identify the City’s positions on these issues as areas of concern. City of Palo Alto Page 14 Some of the items are listed below. Council may wish to address some items through the ordinance. If so, Council can provide staff direction to update the ordinance accordingly and include the changes in the second reading of the ordinance. These items include: 1. Subterranean Construction and/or Basements – By allowing basements below ADUs or by allowing some portion of an ADU to be constructed below grade, designers may provide more habitable space overall, including creating two-story ADUs. The zoning code currently prohibits basements within the setbacks of properties except for permitted primary home encroachments into the rear yard setback. When staff spoke with other departments, there was no other limitation on basement locations except for when a property is in the flood zone. Staff suggested allowing basements as an option to the PTC, but the topic did not generate significant discussion. The PTC did not make a motion to amend the proposed ordinance to allow basements. When this topic has come up before, some community members have also expressed concern about the impact excavation could have on the root system of nearby trees. 2. Noise Producing Equipment – The architect group suggested regulating noise producing equipment through requiring the equipment meet a certain decibel (dB) level; this would be in lieu of regulating both the decibel level and location of the equipment. This would provide more flexibility in different situations. This could, however, place noise producing equipment closer to the property line and thus closer to neighboring properties. Advances in technology have resulted in much quieter equipment. For louder equipment, staff could require a noise analysis or study that would demonstrate its compliance to get approved or further regulate its location if equipment does not comply. Maintenance is also a consideration for exterior noise-generating equipment. 3. On-Site Covered Parking When an ADU or JADU Converts a Garage – The architect group suggested allowing property owners to provide on-site covered parking that is attached to an ADU. For example, if a garage is converted to an ADU, a covered parking space (garage) could be provided attached to the ADU and not count towards the size of the ADU. While the proposed ordinance does allow the construction of a covered parking space to replace the lost space, the space counts towards the floor area and the maximum size of an ADU if the structures are attached. On one hand, this could create a disincentive to provide covered, on-site parking to the ADU. Covered parking could be a benefit to the occupant as well as the broader neighborhood. On the other hand, the massing of the building would increase if the garage did not count towards the ADU. In practice, many garages are not used for City of Palo Alto Page 15 vehicular storage, so the need to maintain car parking space may not be met even if a garage is provided. 4. Reconstructing Versus Converting Non-Conforming Structures – The architect group asserts that, in many cases, it is more efficient, cost-effective, and provides a better housing unit to demolish an existing structure than to convert that structure to habitable space. Yet, without some allowances for changing a non-conforming structure’s exterior envelope, rebuilding in the exact same dimensions may not be feasible. In the proposed ordinance, staff has interpreted the state law to mean that no physical alteration to the building’s existing envelope (or existing three-dimensional footprint) could be made without having to rebuild the structure to a conforming location. This supports the City’s typical desire to ensure non-conforming structures are eventually eliminated; the City does not typically seek to perpetuate a non-conforming structure’s existence nor to further the degree of its non-conformity (in this case size). Alternatively, Council may also choose to allow reconstruction of non-confirming buildings in the same location in substantially the same dimensions. Council may, for example, allow the height of the structure to increase by up to 3 feet and the width of the structure to grow by 1 foot in all directions, while remaining in the same non- conforming location. This increase could allow a newly constructed ADU to accommodate contemporary code requirements and needs of habitable buildings without significantly increasing the degree of non-conformity, but may exacerbate perceived concerns regarding privacy. 5. Sewer Line Connections – Running separate sewer line from a detached ADU to the main can increase the cost of an ADU. The architect group asks the City to allow detached ADUs to be exempted from this requirement. Attached ADUs and JADUs can connect to the primary home’s existing sewer connection; and the group seeks to have detached ADUs to be treated likewise. The City’s Chief Building Official has researched the code and cannot find any latitude within the code to exempt detached ADUs from the requirement to install an additional sewer line, unless a finding of infeasibility can be made and costs, which are often cited as the principal constraint, is not a qualifying factor. Modification of the ordinance regarding any of these items is not required to maintain compliance with the state law. Council may, however, concur with the practitioners and amend the proposed ordinance to increase production of ADUs and JADUs. Environmental Review City of Palo Alto Page 16 The Council finds that the adoption of this Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines sections 15061(b)(3), 15301, 15302 and 15305 because it requirements related to accessory dwelling units as established in Government Code Section 65852.2, and these changes are also likely to result in few additional dwelling units dispersed throughout the City. As such, it can be seen with certainty that the proposed action will not have the potential for causing a significant effect on the environment. Attachments: Attachment A: 2020 Update ADU Ordinance Attachment B: Interim Urgency Ordinance January 2020 (Ordinance #5489) Attachment C: Ten Survey Questions and Responses (February 2020) Attachment D: More Outreach Information Attachment E: Community Meeting May 19, 2020 Attachment F: Government Code Section 65852.2. Accessory Dwelling Units Attachment G: Ch 16.04 2019 Building Code ADU Amendments 6.23.20 Attachment H: Ch 16.06 2019 Residential Code ADU Amendments 6.23.20 Attachment I: Ch 16.14 2019 Green Building Code ADU Amendments 6.23.20 *NOT YET APPROVED* 1 0160028_20200922_ay_16 Ordinance No.__ Ordinance of the Council of the City of Palo Alto Amending Title 18 (Zoning) of the Palo Alto Municipal Code to Amend Requirements Relating to Accessory Dwelling Units and Junior Accessory Dwelling Units The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A. Housing in California is increasingly unaffordable. In 2017, the average California home cost about 2.5 times the national average home price and the monthly rent was 50% higher than the rest of the nation. Rents in San Francisco, San Jose, Oakland, and Los Angeles are among the top 10 most unaffordable in the nation. B. Housing in Palo Alto is especially unaffordable. The average Palo Alto home currently costs about 8 times the national average home price and the monthly rent is about 2.5 times the national average. C. Palo Alto has a jobs/housing imbalance. When addressing this imbalance, the City must not only provide housing but also ensure affordability. D. Assembly Bills (“ABs”) 68, 587, 671, and 881 and Senate Bill (“SB”) 13 (“State ADU Law”) pertain to accessory dwelling units (“ADUs”) and junior accessory dwelling units (“JADUs”) and were approved by the California Legislature on September 13, 2019 and signed by the Governor on October 9, 2019. These bills, codified primarily in California Government Code sections 65952.2 and 65952.22, are intended to spur the creation of lower cost housing by easing regulatory barriers to the creation of ADUs and JADUs. E. This ordinance is adopted to comply with the mandates of the State ADU Law. SECTION 2. Section 18.42.040 (Accessory and Junior Accessory Dwelling Units) of Chapter 18.42 (Standards for Special Uses) of Title 18 (Zoning) of the Palo Alto Municipal Code (“PAMC”) is deleted in its entirety. SECTION 3. Chapter 18.09 (Accessory Dwelling Units and Junior Accessory Dwelling Units) of Title 18 (Zoning) of the Palo Alto Municipal Code (“PAMC”) is added to read: 18.09.010 Purpose The intent of this Chapter is to provide regulations to accommodate accessory and junior accessory dwelling units (ADU/JADU), in order to provide for variety to the city's housing stock and additional affordable housing opportunities. These units shall be separate, self-contained living units, with separate entrances from the main residence, whether attached or detached. The standards below are provided to minimize the impacts of units on nearby residents and throughout the city, and to assure that the size and location of such dwellings is compatible with the existing or proposed residence(s) on the site and with other structures in the area. *NOT YET APPROVED* 2 0160028_20200922_ay_16 18.09.020 Applicable Zoning Districts The establishment of an accessory dwelling unit is permitted in zoning districts when single- family or multi-family residential is a permitted land use. 18.09.030 Units Exempt from Generally Applicable Local Regulations (a) Government Code section 65852.2, subdivision (e) provides that certain units shall be approved notwithstanding state or local regulations that may otherwise apply. The following types of units shall be governed by the standards in this section. In the event of a conflict between this section and Government Code section 65852.2, subdivision (e), the Government Code shall prevail. i. An ADU or JADU within the existing space of a single-family dwelling or an ADU within the existing space of an accessory structure (i.e. conversion without substantial addition). ii. An ADU or JADU within the proposed space of a single-family dwelling. iii. A detached, new construction ADU on a lot with a proposed or existing single-family dwelling, provided the ADU does not exceed 800 square feet, sixteen feet in height, or four-foot side and rear (i.e. interior) setbacks. iv. ADUs created by conversion of portions of existing multi-family dwellings not used as livable space. v. Up to two detached ADUs on a lot with an existing multi-family dwelling. (b) The Development Standards for units governed by this section are summarized in Table 1. // // // // // // // // // // *NOT YET APPROVED* 3 0160028_20200922_ay_16 Table 1: Development Standards for Units Described in Government Code Section 65852.2(e) Single-Family Multi-Family Conversion of Space Within an Existing Single-Family Home or Accessory Structure Construction of Attached ADU Within the Space of a Proposed Single-Family Home New Construction of Detached ADU Conversion of Non-Habitable Space Within Existing Multi-family Dwelling Structure Conversion or Construction of Detached ADU Number of Units Allowed 1 ADU and 1 JADU 25% of the existing units (at least one) 2 Minimum size1 150 sf Maximum size1 N/A2 800 sf N/A Setbacks N/A, if condition is sufficient for fire and safety Underlying zone standard for Single Family Home (ADU must be within space of Single-Family Home) 4 feet from side and rear lot lines; underlying zoning for front setback N/A 4 feet from side and rear lot lines; underlying zoning for front setback Daylight Plane N/A N/A Maximum Height N/A 163 N/A 164 Parking None State Law Reference 65852.2(e)(1)(A) 65852.2(e)(1)(A) 65852.2(e)(1)(B) 65852.2(e)(1)(C) 65852.2(e)(1)(D) (1) Lofts where the height from the floor level to the underside of the rafter or finished roof surface is 5' or greater shall count towards the unit’s floor area. (2) Up to 150 sf may be added for the purpose of ingress and egress only. (3) Units built in a flood zone are not entitled to any height extensions granted to the primary dwelling. (c) Development standards stated elsewhere in this Section or Title 18, including standards related to FAR, lot coverage, and privacy, are not applicable to ADUs or JADUs that qualify for approval under this section. (d) The establishment of accessory dwelling units and junior accessory dwelling units pursuant to this section shall not be conditioned on the correction of non-conforming zoning conditions; provided, however, that nothing in this section shall limit the authority of the Chief Building Official to require correction of building standards relating to health and safety. (e) The installation of fire sprinklers shall not be required in an accessory dwelling unit if sprinklers are not required for the primary residence. Nothing in this section shall preclude the Fire Marshal from accepting fire sprinklers as an alternative means of compliance with generally applicable fire protection requirements. (f) Rental of any unit created pursuant to this section shall be for a term of 30 days or more. (g) Attached units shall have independent exterior access from a proposed or existing single- family dwelling. Except for JADUs, attached units shall not have an interior access point to the primary dwelling (e.g. hotel door or other similar feature/appurtenance). (h) Conversion of an existing accessory structure pursuant to Government Code section 65852.2(e)(1)(A) may include reconstruction in-place of a non-conforming structure, so long *NOT YET APPROVED* 4 0160028_20200922_ay_16 as the renovation of reconstruction does not increase the degree of non-compliance, such as increased height, envelope, or further intrusion into required setbacks. (i) Street addresses shall be assigned to all units prior to building permit final to assist in emergency response. (j) The unit shall not be sold separately from the primary residence. (k) Replacement parking is not required when a garage, carport, or covered parking structure is converted to, or demolished in conjunction with the construction of, an ADU. (l) JADUs shall comply with the requirements of Section 18.09.050. 18.09.040 Units Subject to Local Standards (a) This section shall govern applications for ADUs and JADUs that do not qualify for approval under section 18.09.030 and for which the City may impose local standards pursuant to Government Code section 65852.2, subdivisions (a) through (d). (b) The Development Standards for units governed by this section are provided in Table 2. Table 2: All other Units Attached Detached JADU Number of Units Allowed1 1 1 Minimum size 150 sf Maximum size 900 sf (1,000 sf for two or more bedrooms); no more than 50% of the size of the single-family home 900 sf (1,000 sf for two or more bedrooms) 500 sf Setbacks 4 feet from side and rear lot lines; underlying zone standard for front setback Daylight Plane Initial Height 8 feet at lot line Angle 45 degrees Maximum Height3 Res. Estate (RE) 30 feet Open Space (OS) 25 feet All other eligible zones 16 feet Parking None Square Footage Exemption Up to 800 sf(4) Up to 500 sf(4) (1) An attached or detached ADU may be built in conjunction with a JADU on a lot with an existing or proposed single family home (2) Lofts where the height from the floor level to the underside of the rafter or finished roof surface is 5' or greater shall count towards the unit’s floor area. (3) Units built in a flood zone are not entitled to any height extensions granted to the primary dwelling. (4) Lots with both an ADU and a JADU may exempt a maximum combined total of 800 square feet of the ADU and JADU from FAR, Lot Coverage, and Maximum House Size calculations. (c) A single-family dwelling shall exist on the lot or shall be constructed on the lot in conjunction with the construction of an ADU/JADU. *NOT YET APPROVED* 5 0160028_20200922_ay_16 (d) ADU and/or JADU square footage shall not be included in FAR, Lot Coverage, and Maximum House Size calculations for a lot with an existing or proposed single family home, up to the amounts stated in Table 2. ADU and/or JADU square footage in excess of the exemptions provided in Table 2 shall be included in FAR, Lot Coverage, and Maximum House Size calculations for the lot. (e) Attached units shall have independent exterior access from a proposed or existing single-family dwelling. Except for JADUs, attached units shall not have an interior access point to the primary dwelling (e.g. hotel door or other similar feature/appurtenance). (f) No protected tree shall be removed for the purpose of establishing an accessory dwelling unit unless the tree is dead, dangerous or constitutes a nuisance under Section 8.04.050. Any protected tree removed pursuant to this subsection shall be replaced in accordance with the standards in the Tree Technical Manual. (g) For properties listed in the Palo Alto Historic Inventory, the California Register of Historical Resources, the National Register of Historic Places, or considered a historic resource after completion of a historic resource evaluation, compliance with the appropriate Secretary of Interior’s Standards for the Treatment of Historic Properties shall be required. (h) Noise-producing equipment such as air conditioners, water heaters, and similar service equipment, shall be located outside of the setbacks for the ADU/JADU. All such equipment shall be insulated and housed, except that the planning director may permit installation without housing and insulation, provided that a combination of technical noise specifications, location of equipment, and/or other screening or buffering will assure compliance with the city’s Noise Ordinance at the nearest property line. All service equipment must meet the city’s Noise Ordinance in Chapter 9.10 of the Municipal Code. (i) Setbacks i. Detached units shall maintain a minimum three-foot distance from the primary unit, measured from the exterior walls of structures. ii. No basement or other subterranean portion of an ADU/JADU shall encroach into a setback required for the primary dwelling. iii. Projections, including but not limited to windows, doors, mechanical equipment, venting or exhaust systems, are not permitted to encroach into the required setbacks, with the exception of a roof eave of up to 2 feet. (j) Design i. Except on corner lots, the unit shall not have an entranceway facing the same lot line (property line) as the entranceway to the main dwelling unit unless the entranceway to the accessory unit is located in the rear half of the lot. Exterior staircases to second floor units shall be located toward the interior side or rear yard of the property. ii. Privacy A. Second story doors and decks shall not face a neighboring dwelling unit. Second story decks and balconies shall utilize screening barriers to prevent views into adjacent properties. These barriers shall provide a minimum five-foot, six-inch, screen wall from the floor level of the deck or balcony and shall not include perforations that would allow visibility between properties. *NOT YET APPROVED* 6 0160028_20200922_ay_16 B. Second story windows, excluding those required for egress, shall have a five-foot sill height as measured from the second-floor level, or utilize obscured glazing on the entirety of the window when facing adjacent properties. Second story egress windows shall utilize obscured glazing on the entirety of the windows which face adjacent properties. C. Second story windows shall be offset from neighbor’s windows to maximize privacy. (k) Parking i. Replacement parking is not required when a garage, carport, or covered parking structure is converted to, or demolished in conjunction with the construction of, an ADU. ii. Replacement parking is required when an existing attached garage is converted to a JADU. These replacement spaces may be provided as uncovered spaces in any configuration on the lot including within the front or street side yard setback for the property. A. The Director shall have the authority to modify required replacement parking spaces by up to one foot in width and length upon finding that the reduction is necessary to accommodate parking in a location otherwise allowed under this code and is not detrimental to public health, safety or the general welfare. B. Existing front and street side yard driveways may be enlarged to the minimum extent necessary to comply with the replacement parking requirement above. Existing curb cuts shall not be altered except when necessary to promote public health, safety or the general welfare. iii. When parking is provided, the unit shall have street access from a driveway in common with the main residence in order to prevent new curb cuts, excessive paving, and elimination of street trees, unless separate driveway access will result in fewer environmental impacts such as paving, grading or tree removal. iv. If covered parking for a unit is provided in any district, the maximum size of the covered parking area for the accessory dwelling unit is 220 square feet. This space shall count towards the total floor area for the site but does not contribute to the maximum size of the unit unless attached to the unit. (l) Miscellaneous requirements i. Street addresses shall be assigned to all units prior to building permit final to assist in emergency response. ii. The unit shall not be sold separately from the primary residence. iii. Rental of any unit created pursuant to this section shall be for a term of 30 days or more. iv. The installation of fire sprinklers shall not be required in an accessory dwelling unit if sprinklers are not required for the primary residence. Nothing in this section shall preclude the Fire Marshal from accepting fire sprinklers as an alternative means of compliance with generally applicable fire protection requirements. *NOT YET APPROVED* 7 0160028_20200922_ay_16 18.09.050 Additional Requirements for JADUs (a) A junior accessory dwelling unit shall be created within the walls of an existing or proposed primary dwelling. (b) The junior accessory dwelling unit shall include an efficiency kitchen, requiring the following components: A cooking facility with appliances, and; food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit. i. A cooking facility with appliances shall mean, at minimum a one burner installed range, an oven or convection microwave, a 10 cubic foot refrigerator and freezer combination unit, and a sink that facilitates hot and cold water. ii. A food preparation counter and storage cabinets shall be of reasonable size in relation to a JADU if they provide counter space equal to a minimum 24-inch depth and 36- inch length. (c) For the purposes of any fire or life protection ordinance or regulation or for the purposes of providing service for water, sewer, or power, a junior accessory dwelling unit shall not be considered a separate or new unit. (d) The owner of a parcel proposed for a junior accessory dwelling unit shall occupy as a primary residence either the primary dwelling or the junior accessory dwelling. Owner-occupancy is not required if the owner is a governmental agency, land trust, or housing organization. (e) Prior to the issuance of a building permit for a junior accessory dwelling unit, the owner shall record a deed restriction in a form approved by the city that includes a prohibition on the sale of the junior accessory dwelling unit separate from the sale of the single-family residence, requires owner-occupancy consistent with subsection (m)(iv) above, does not permit short- term rentals, and restricts the size and attributes of the junior dwelling unit to those that conform with this section. SECTION 4. Subsection (g) of Section 16.58.030 of Chapter 16.58 (Development Impact Fees) of Title 16 (Building) of the Palo Alto Municipal Code (“PAMC”) is amended to read: (f) Accessory dwelling units (ADU) less than 750 square feet in size. Any impact fees to be charged for an accessory dwelling unit of 750 square feet or more shall be proportional to the square footage of the primary dwelling unit established by the conversion of an existing garage or carport, provided that the existing garage or carport was legally constructed, or received building permits, as of January 1, 2017, and is converted to an ADU with no expansion of the existing building envelope; SECTION 5. Subsections (a)(4) and (a)(75) of Section 18.04.030 (Definitions) of Chapter 18.04 (Definitions) of Title 18 (Zoning) of the Palo Alto Municipal Code (“PAMC”) is amended to read: [. . .] (4) “Accessory dwelling unit” means an attached or a detached residential dwelling unit which provides complete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single- *NOT YET APPROVED* 8 0160028_20200922_ay_16 family dwelling is situated. An accessory dwelling unit also includes the following: (A) An efficiency unit, as defined in Section 17958.1 of the Health and Safety Code. (B) A manufactured home, as defined in Section 18007 of the Health and Safety Code. In some instances this Code uses the term second dwelling unit interchangeably with accessory dwelling unit. For the purposes of this definition, in order to provide “complete independent living facilities,” a dwelling unit shall not have an interior access point to another dwelling unit (e.g. hotel door or other similar feature/appurtenance). [. . .] (75) “Kitchen” means a room designed, intended or used for cooking and the preparation of food and dishwashing. Kitchen facilities include the presence of major appliances, utility connections, sink, counter, for storing, preparing, cooking, and cleaning. (A) For ADUs, major appliances shall mean a minimum two burner installed range, and an oven or convection microwave, as well as a minimum 16 cubic foot freezer and refrigerator combination unit. Kitchens shall also include counter space for food preparation equal to a minimum 24-inch depth and 36-inch length, and a sink that facilitates hot and cold water. [. . .] SECTION 6. Any provision of the Palo Alto Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 7. 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 8. The Council finds that the adoption of this Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines sections 15061(b)(3), 15301, 15302 and 15305 because it constitutes minor adjustments to the City’s zoning ordinance to implement State law requirements related to accessory dwelling units as established in Government Code Section 65852.2, and these changes are also likely to result in few additional dwelling units dispersed throughout the City. As such, it can be seen with certainty that the proposed action will not have the potential for causing a significant effect on the environment. // // // // *NOT YET APPROVED* 9 0160028_20200922_ay_16 SECTION 9. This ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: NOT PARTICIPATING: ATTEST: __________________________________ __________________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________________ ___________________________________ Assistant City Attorney City Manager __________________________________ Director of Planning & Development Services Attachment B The Web Link to the Interim Urgency Ordinance January 2020 (Ordinance #5489): http://bit.ly/copa_ordinance_5489 Attachment C The Web Link to the Ten Survey Questions Regarding ADUs and Responses: http://bit.ly/adu_survey Attachment D The Web Link to More Information Regarding Outreach: http://bit.ly/outreach_info Attachment E The Web Link to the Presentation for Community Meeting on May 19, 2020: http://bit.ly/adu_meeting_may19 Attachment F The Web Link to the Government Code Section 65852.2. Accessory Dwelling Units: http://bit.ly/adu_gov_code 1 2019 Code Cycle ORD Amending Ch. 16.04 Building Code NOT YET ADOPTED Ordinance No. Ordinance of the Council of the City of Palo Alto Repealing Chapter 16.04 of the Palo Alto Municipal Code and Amending Title 16 to Adopt a New Chapter 16.04, California Building Code, California Historical Building Code, and California Existing Building Code, 2019 Editions, and Local Amendments and Related Findings The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Chapter 16.04 of the Palo Alto Municipal Code is hereby amended by repealing it in its entirety and adopting a new Chapter 16.04 to read as follows: 16.04 CALIFORNIA BUILDING CODE 16.04.010 2019 California Building Code adopted. The California Building Code, 2019 Edition, Title 24, Part 2 of the California Code of Regulations, together with those omissions, amendments, exceptions and additions thereto, is adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein. Unless superseded and expressly repealed, references in City of Palo Alto forms, documents and regulations to the chapters and sections of the former California Code of Regulations, Title 24, 2016, shall be construed to apply to the corresponding provisions contained within the California Code of Regulations, Title 24, 2019. Ordinance No. 5477 of the City of Palo Alto and all other ordinances or parts of ordinances in conflict herewith are hereby suspended and expressly repealed. Wherever the phrases “California Building Code” or “Building Code” are used in this code or any ordinance of the City, such phrases shall be deemed and construed to refer and apply to the California Building Code, 2019 Edition, Title 24, Part 2 of the California Code of Regulations, as adopted by this chapter. One copy of the California Building Code, 2019 Edition, has been filed for use and examination of the public in the Office of the Building Official of the City of Palo Alto. 16.04.20 2019 California Building Code Appendix Chapters adopted. The following Appendix chapters and section of the California Building Code, 2019 Edition, are adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein: A. Appendix I – Patio Covers B. Section J109.4 – Drainage across Property Lines (Appendix J) C. Appendix O – Emergency Housing 2 2019 Code Cycle ORD Amending Ch. 16.04 Building Code 16.04.030 Cross - References to California Building Code. The provisions of this Chapter contain cross-references to the provisions of the California Building Code, 2019 Edition, in order to facilitate reference and comparison to those provisions. 16.04.040 Section 1.11.2.1.1 Duties and powers of the enforcing agency/Enforcement. Section 1.11.2.1.1 of Chapter 1 of the California Building Code is amended to read: 1.11.2.1.1 The responsibility for enforcement of building standards adopted by the State Fire Marshal and published in the California Building Standards Code relating to fire and panic safety and other regulations of the State Fire Marshal shall, except as provided in Section 1.11.2.1.2, be as follows: 1. The city, county or city and county with jurisdiction in the area affected by the standard or regulation shall delegate the enforcement of the building standards relating to fire and panic safety and other regulations of the State Fire Marshal as they relate to Group R-3 occupancies, as described in Section 310.1 of Part 2 of the California Building Standards Code, to both enforcement divisions specific to their areas of enforcement disciplines: 1.1 The chief of the fire authority of the city or an authorized representative and; 1.2. The chief building official of the city or an authorized representative. 16.04.050 Violations -- Penalties. It is unlawful for any person to violate any provision or to fail to comply with any of the requirements of this Chapter or any permits, conditions, or variances granted under this Chapter. Violators shall be subject to any penalty or penalties authorized by law, including but not limited to: administrative enforcement pursuant to Chapters 1.12 and 1.16 of the Palo Alto Municipal Code; and criminal enforcement pursuant to Chapter 1.08 of the Palo Alto Municipal Code. Each separate day or any portion thereof during which any violation of this Chapter occurs or continues shall be deemed to constitute a separate offense. When the chief building official determines that a violation of this Chapter has occurred, the chief building official may record a notice of pendency of code violation with the Office of the County Recorder stating the address and owner of the property involved. When the violation has been corrected, the chief building official shall issue and record a release of the notice of pendency of code violation. 16.04.060 Enforcement -- Criminal Enforcement Authority. The employee positions designated in this section are authorized to exercise the authority provided in California Penal Code section 836.5 for violations of this Chapter. The designated employee positions are: (1) chief building official, (2) assistant chief building official, (3) building inspection manager, and (4) code enforcement officer. 16.04.070 Local Amendments. 3 2019 Code Cycle ORD Amending Ch. 16.04 Building Code The provisions of this Chapter shall constitute local amendments to the cross-referenced provisions of the California Building Code, 2019 Edition, and shall be deemed to replace the cross-referenced sections of said Code with the respective provisions set forth in this Chapter. 16.04.075 Section 101 General. Section 101 of Chapter 1 of the California Building Code is amended to read: 101.1 Title. The regulations shall be known as the Building Code of City of Palo Alto, hereinafter referred to as “this code.” 16.04.080 Section 105.1.3 Demolition permits. Section 105.1.3 of Chapter 1 of the California Building Code is added to read: 105.1.3 Demolition permits. In addition to other requirements of law, every person seeking a permit to demolish a unit used for residential rental purposes shall furnish an affidavit or declaration under penalty of perjury that the unit proposed to be demolished is vacant, or that notice to vacate has been given to each tenant lawfully in possession thereof as required by law or by the terms of such tenancy. No work or demolition shall begin upon any portion of such a unit until each and every portion has been vacated by all tenants lawfully in possession thereof. 16.04.085 Section 105.3.2 Time limitation of application. Section 105.3.2 of Chapter 1 of the California Building Code is amended to read: Section 105.3.2 Time limitation of application. An application for a permit for any proposed work shall be deemed to have been abandoned 365 days after the date of filing, unless such application has been pursued in good faith or a permit has been issued; except that the building official is authorized to grant one or more extensions and/or reactivations for additional periods not exceeding 90 days each. The extension shall be required in writing and justifiable cause demonstrated. 16.04.090 Section 105.5 Expiration. Section 105.5 of Chapter 1 of the California Building Code is amended to read: 105.5 Expiration. Every permit issued shall become invalid unless the work on the site authorized by such permit is commenced within 180 days or 12 months for residential occupancies after its issuance, or if the work authorized on the site by such permit is suspended or abandoned for a period of 180 days after the time the work is commenced. For the purpose of this section, failure to progress a 4 2019 Code Cycle ORD Amending Ch. 16.04 Building Code project to the next level of required inspection shall be deemed to be suspension of the work. The chief building official or designee is authorized to grant, in writing, no more than three extensions and reactivations of permits that would otherwise expire or reactivations of expired permits, for periods not more than 180 days each and may require: 1) that the construction documents be revised to partially or fully comply with current codes; and 2) payment of a fee; and 3) payment of a penalty pursuant to Chapter 16.62 of the Palo Alto Municipal Code, as it may be amended from time to time. Extensions and reactivations shall be requested in writing and justifiable cause demonstrated. Additional extensions or reactivations beyond three may only be granted with the approval of the City Council. 105.5.1 Term Limit for Permits. All work associated with a building permit must be completed, and final inspection issued, within 48 months of permit issuance. 16.04.100 Section 109.6 Refunds. Section 109.6 of Chapter 1 of the California Building Code is amended to read: 109.6 Refunds The building official or designee may authorize the refund of any fee paid hereunder which was erroneously paid or collected. The building official or designee may authorize the refund of not more than eighty percent (80%) of the Permit Fee paid when no work has occurred under a permit issued pursuant to this Chapter. The building official or designee may authorize the refund of not more than eighty percent (80%) of the Plan Review Fee paid when a permit application is withdrawn or canceled before any plan review work has started. 16.04.110 Section 109.7 Re-Inspection fees. Section 109.7 of Chapter 1 of the California Building Code is added to read: 109.7 Re-Inspection Fees. A Re-Inspection Fee may be assessed/authorized by the building official or the building inspection supervisor for each re-inspection required when work for which an inspection is requested is not ready for inspection or when required corrections noted during prior inspections have not been completed. A “Re- Inspection Fee” may be assessed/authorized when: 1. The inspection record card is not posted or otherwise available on the work site; or 2. The approved plans are not readily available for the inspector at the time of inspection; or 3. The inspector is unable to access the work at the time of inspection; or 5 2019 Code Cycle ORD Amending Ch. 16.04 Building Code 4. When work has substantially deviated from the approved plans without the prior approval of the building official. 5. When a Re-Inspection Fee is assessed, additional inspection of the work will not be performed until the fee has been paid. 16.04.115 Section 110.2.1 Preliminary accessibility compliance inspection. Section 110.2.1 of Chapter 1 of the California Building Code is added to read: 110.2.1 Preliminary accessibility compliance inspection. Before issuing a permit, the building official or designee is authorized to examine or cause to be examined the pre- construction accessibility compliance conditions of the buildings, structures, and sites for which an application has been filed. 16.04.120 Section 110.3.3 Lowest floor elevation. Section 110.3.3 of Chapter 1 of the California Building Code is amended to read: 110.3.3 Lowest floor elevation. In flood hazard areas, upon placement of the lowest floor, including the basement, and prior to further vertical construction, the elevation certification shall be submitted to City Public Works Engineering for inspection approval prior to foundation inspection by City Building Inspection. 16.04.130 Section 111.1 – Use and occupancy. Section 111.1 of Chapter 1 of the California Building Code is amended to read: 111.1 Use and occupancy. A building or structure shall not be used or occupied, and a change in the existing occupancy of a building or structure or portion thereof shall not be made, until the building official has issued a certificate of occupancy therefor as provided herein. Issuance of a certificate of occupancy shall not be construed as an approval of a violation of the provisions of this code or of other ordinances of the jurisdiction. Exception: Certificates of occupancy are not required for: 1. Work exempt from permits under Section 105.2 2. Group R – Division 2, 3 occupancies 3. Group U occupancies 111.1.1 Change of occupancy or tenancy. Each change of occupancy, official name or tenancy of any building, structure or portion thereof, shall require a new certificate of occupancy, whether or not any alterations to the building are required by this code. If a portion of any building does not conform to the requirements of this code for a proposed occupancy, that portion shall be made to conform. The building official may issue a new certificate of occupancy without requiring compliance with all such requirements if it is determined that the change in occupancy or 6 2019 Code Cycle ORD Amending Ch. 16.04 Building Code tenancy will result in no increased hazard to life or limb, health, property or public welfare. When application is made for a new certificate of occupancy under this section, the building official and fire chief shall cause an inspection of the building to be made. The inspector(s) shall inform the applicant of those alterations necessary, or if none are necessary, and shall submit a report of compliance to the building official. Before any application for a new certificate of occupancy is accepted, a fee shall be paid by the applicant to cover the cost of the inspection of the building required by the change of occupancy or tenancy. 16.04.140 Section 111.3– Temporary occupancy. Section 111.3 of Chapter 1 of the California Building Code is amended to read: 111.3 Temporary occupancy. The building official is authorized to issue a temporary certificate of occupancy before the completion of the entire work covered by the permit, or as otherwise required, provided that such portion or portions shall be occupied safely. The building official shall set a time period during which the temporary certificate of occupancy is valid. 16.04.150 Section 111.5 Posting. Section 111.5 of Chapter 1 of the California Building Code is added to read: 111.5 Posting. The certificate of occupancy shall be posted in a conspicuous, readily accessible place in the building or portion of building to be occupied and shall not be removed except when authorized by the building official. 16.04.153 Section 115 Stop Work Order. Section 115 of Chapter 1 of the California Building Code is amended to read: SECTION 115 STOP WORK ORDER 115.1 Authority. Whenever the building official finds any work regulated by this code being performed in a manner that is contrary to the provisions of this code, without a permit, beyond the scope of the issued permit, in violation of the Palo Alto Municipal Code or Zoning Ordinance, or dangerous or unsafe, the building official is authorized to issue a stop work order. 115.2 Issuance. The stop work order shall be in writing and shall be posted in a visible location near the location where the work is being conducted. If the owner or owner’s agent is not on site at the time of posting, a notice advising the reasons for the stop work order issuance shall be hand delivered or mailed first-class to the owner of the property 7 2019 Code Cycle ORD Amending Ch. 16.04 Building Code involved, or to the owner’s agent, or to the person doing the work. Upon issuance of a stop work order, the cited work shall immediately cease. The stop work order shall state the reason for the order, the conditions under which the cited work will be permitted to resume, and the name and contact information of the official or agency issuing the order. 115.3 Unlawful Continuance. Any person who continues to engage in any work after having been served with a stop work order, except such work as that person is directed to perform to remove a violation or unsafe condition, shall be guilty of a misdemeanor. 115.4 Removal of Posted Stop Work Order. Any person who removes a posted stop work order without written consent of the Building Official shall be guilty of a misdemeanor. 115.5 Response Required. Violators receiving a stop work order are required to respond to the Building Division within five (5) business days of the issued notice to receive instructions on how to rescind the order. 115.6 Permit Application Required. A building permit application with construction or demolition plans and supporting (structural calculations, energy calculations, accessible access) documents must be submitted for approval within fifteen (15) working days following response to the Building Division. Plans will be reviewed and correction letters issued or permit application approved by the Building Division. A response to any correction letter must be submitted within fifteen (15) working days of the date of the correction letter. Ten working days will be required to review this second submission and a permit approved for issuance. Permits ready for issuance must be issued within 5 working days thereafter. All construction must be inspected as work progresses and signed off by all (affected) departments within 180 days of building permit issuance. 115.7 Stop Work Order Penalty. The Building Official may impose Stop Work Order Penalties in accordance with Section 1.14.050 of this code and/or other applicable law. 16.04.155 Section 502.1 Address identification. Section 502.1 of Chapter 5 of the California Building Code is amended to read: 502.1 Address identification. New and existing buildings shall be provided with approved address identification. The address identification shall be legible and placed in a position that is visible from the street or road fronting the property. Address identification characters shall contrast with their background. Address numbers shall be Arabic numbers or alphabetical letters. Numbers shall not be spelled out. Each character shall be a minimum of 4 inches (102 mm) high with a minimum stroke width of ½ inch (12.7 mm) unless required to be larger by Section 502.1.2. When required by the fire code official, address identification shall be provided in additional approved locations to facilitate emergency response. Where access is by means of a private road and the building address cannot be viewed from the public way, a monument, pole or other approved sign or means shall be used to identify the structure. Address numbers shall be maintained. 8 2019 Code Cycle ORD Amending Ch. 16.04 Building Code 502.1.1 Address illumination. Address identification required by Section 501.2 shall be illuminated. 502.1.2 Address identification size. Address numbers and letters shall be sized as follows: 1. When the structure is between thirty-six (36) and fifty (50) feet from the road or other emergency means of access, a minimum of one-half inch (0.5”) stroke by six inches (6”) high is required. 2. When the structure is fifty (50) or more feet from the road or other emergency means of access, a minimum of one inch (1”) stroke by nine inches (9”) high is required. 16.04.160 Section 702A Definitions – Wildland-Urban Interface Fire Area. Section 702A of Chapter 7A of the California Building Code is amended include the following definition of “Wildland-Urban Interface Fire Area”: WILDLAND-URBAN INTERFACE FIRE AREA is a geographical area identified by the State of California as a “Fire Hazard Severity Zone” in accordance with Public Resources Code Sections 4201 through 4202 and Government Code Sections 51175 through 51189, or other areas designated by the enforcing agency to be at a significant risk from wildfires. Within the city limits of the City of Palo Alto, “Wild Land-Urban Fire Interface Area” shall also include all areas west of Interstate 280, and all other areas recommended as a “Very High Fire Hazard Severity Zone” by the Director of the California Department of Forestry. 16.04.170 Reserved 16.04.180 Section 903.2 – Automatic Sprinkler Systems, Where Required. Section 903.2 of Chapter 9 the California Building Code is amended to read as follows: 903.2 Automatic sprinkler systems, where required. Approved automatic sprinkler systems in new buildings and structures and in existing modified buildings and structures, shall be provided in the locations described in this section. Automatic fire sprinklers shall be installed per the requirements set forth in Sections 903.2.1 through 903.2.18 and as follows, whichever is the more restrictive: 1. An automatic sprinkler system shall be provided throughout all new buildings and structures. Exception: New non-residential occupancies, buildings or structures that do not exceed 350 square feet of building area and contain no plumbing fixtures. 9 2019 Code Cycle ORD Amending Ch. 16.04 Building Code 2. An automatic sprinkler system shall be provided for all existing buildings or structures where modifications have been determined by the Building Official to trigger requirements for seismic retrofit. 3. An automatic sprinkler system shall be provided throughout all existing buildings when modifications are made that create conditions described in Sections 903.2.1 through 903.2.18, or that create an increase in fire area to more than 3600 square feet or when the addition is equal or greater than 50% of the existing building square footage whichever is more restrictive. 4. An automatic sprinkler system shall be provided throughout all new or rendered usable for occupancy and/or storage space basements regardless of size and throughout existing basements that are expanded by more than 50% or is conditioned for use. If the addition is only the basement, then only the basement is required to be fire sprinkler protection. 5. An automatic sprinkler system shall be installed throughout when either the roof structure and/or exterior wall structure have been removed and/or replaced by at least 50% of the existing structure. 6. An automatic sprinkler system shall be installed throughout when any change in use or occupancy creating a more hazardous fire/life safety condition, as determined by the Fire Chief. 16.04.190 Section 903.3.1.1 NFPA sprinkler systems. Section 903.3.1.1 of Chapter 9 of the California Building Code is amended to read as follows: 903.3.1.1 NFPA 13 sprinkler systems. Where the provisions of this code require that a building or portion thereof be equipped throughout with an automatic sprinkler system in accordance with this section, sprinklers shall be installed throughout in accordance with NFPA 13 and State and local requirements except as provided in Section 903.3.1.1. 1. For new buildings having no designated use or tenant, the minimum sprinkler design density shall be Ordinary Hazard Group II. 2. Where future use or tenant is determined to require a higher density, the sprinkler system shall be augmented to meet the higher density. 16.04.200 Section 903.3.1.2 – NFPA 13R sprinkler systems. Section 903.3.1.2 of Chapter 9 of the California Building Code is amended to read as follows: 903.3.1.2 NFPA 13R sprinkler systems. Where allowed in buildings of Group R Occupancies, up to and including four stories in height, automatic sprinkler systems shall be installed throughout in accordance with NFPA 13 and State and local standards. 10 2019 Code Cycle ORD Amending Ch. 16.04 Building Code 16.04.210 Section 903.3.1.3 – NFPA 13D sprinkler systems. Section 903.3.1.3 of Chapter 9 of the California Building Code is amended to read as follows: 903.3.1.3 NFPA 13D sprinkler systems. Where allowed, automatic sprinkler systems installed in one-and two-family detached dwellings and townhouses shall be installed throughout in accordance with NFPA 13D and State and local standards. Fire sprinkler protection is required under rear covered patios extending 4 feet perpendicular from the exterior of the structure. 16.04.220 Reserved 16.04.230 Reserved 16.04.240 Section 903.4.3 - Floor control valves. Section 903.4.3 of Chapter 9 of the California Building Code is amended to read as follows: 903.4.3 Floor control valves. Automatic sprinkler systems serving buildings two (2) or more stories in height shall have valves installed so as to control the system independently on each floor including basements. 16.04.250 Section 905.3.1 Standpipe Systems. Section 905.3.1 of the California Building Code is amended to read as follows: 905.3.1 Height. A Class I standpipe system shall be installed in buildings 3 or more stories in height and in below grade occupied levels. 16.04.255 Section 1203.6 Ventilation of weather-exposed enclosed assemblies. Section 1203.6 of Chapter 12 of the California Building Code is added to read: 1203.6 Ventilation of weather-exposed enclosed assemblies. Exterior projecting elements and appurtenances exposed to the weather and sealed underneath, including but not limited to balconies, landings, decks, and stairs, shall have cross ventilation for each separate enclosed space by ventilation openings protected against the entrance of rain and snow. Blocking and bridging shall be arranged so as not to interfere with the movement of air. The net free ventilating area shall not be less than 1/150th of the area of the space ventilated. Ventilation openings shall comply with Section1203.2.1. An access panel of sufficient size shall be provided on the underside of the enclosed space to allow for periodic inspection. Exceptions: 1. An access panel is not required where the exterior coverings applied to the underside of joists are easily removable using only common tools. 11 2019 Code Cycle ORD Amending Ch. 16.04 Building Code 2. Removable soffit vents of at least four inches (4”) in width can be used to satisfy both ventilation and access panel requirements. 16.04.260 Section 1206.3.4 – Roof guardrails at interior courts. Section 1206.3.4 of Chapter 12 of the California Building Code is added to read: 1206.3.4 Roof guardrails at interior courts. Roof openings into interior courts that are bounded on all sides by building walls shall be protected with guardrails. The top of the guardrail shall not be less than 42 inches in height above the adjacent roof surface that can be walked on. Intermediate rails shall be designed and spaced such that a 12 inch diameter sphere cannot pass through. Exception: Where the roof opening is greater than 600 square feet in area. 16.04.265 Section 1406.3.1 Projections exposed to weather. Section 1406.3.1 of Chapter 14 of the California Building Code is added to read: 1406.3.1 Projections exposed to weather. Floor projections exposed to the weather and sealed underneath, including but not limited to balconies, landings, decks, and stairs shall be constructed of naturally durable wood, preservative-treated wood, corrosion-resistant (e.g. galvanized) steel, or similar approved materials. 16.04.270 Section 1503.2.1 Flashing Locations. Section 1503.2.1 of Chapter 15 of the California Building Code is amended to read: 1503.2.1 Locations. Flashing shall be installed at wall and roof intersections, gutters, wherever there is a change in roof slope or direction, and around roof openings. Where flashing is of metal, the metal shall be corrosion resistant with a thickness of not less than 0.019 inches (0.483 mm) (e.g. no. 26 galvanized sheet) and shall be primed and painted. 16.04.275 Section 1613.5 ASCE 7, Section 13.1.4 Seismic Design Requirements for Nonstructural Components. Section 1613.5 of Chapter 16 of the California Building Code is added to include the following: 13.1.4 Exemptions. The following nonstructural components are exempt from the requirements of this section: 1. Furniture (except storage cabinets as noted in Table 13.5-1). 2. Temporary or movable equipment 3. Architectural components in Seismic Design Category B other than parapets supported by bearing walls or shear walls provided that the component importance factor, Ip, is equal to 1.0. 4. Mechanical and electrical components in Seismic Design Category B. 5. Mechanical and electrical components in Seismic Design Category C provided that the component importance factor, Ip, is equal to 1.0. 12 2019 Code Cycle ORD Amending Ch. 16.04 Building Code 6. Mechanical and electrical components in Seismic Design Categories D, E, or F where all of the following apply: a. The component importance factor, Ip, is equal to 1.0; b. The component is positively attached to the structures; c. Flexible connections are provided at seismic separation joints and between the component and associated ductwork, piping, and conduit; and either: i. The component weighs 400 lb (1,780 N) or less and has a center of mass located 4 ft (1.22 m) or less above the adjacent floor level; or ii. The component weights 20 lb (89 N) or less or, in the case of a distributed system, 5 lb/ft (73 N/m) or less; or iii. The component weights 200 lb (890N) or less and is suspended from roof/floor or mounted on wall. 16.04.280 Section 1612.1.1 - Palo Alto Flood Hazard Regulations. Section 1612.1.1 of Chapter 16 of the California Building Code is added to read: 1612.1.1 Palo Alto Flood Hazard Regulations. Notwithstanding the provisions of Section 1612.1, all construction or development within a flood hazard area (areas depicted as a Special Flood Hazard Area on Flood Insurance Rate Maps published by the Federal Emergency Management Agency) shall comply with the City of Palo Alto Flood Hazard Regulations (Palo Alto Municipal Code Chapter 16.52). Where discrepancies exist between the requirements of this code and said regulations, the provisions of said regulations shall apply. 16.04.290 Section 1705.3 Concrete Construction. Section 1705.3 of Chapter 17 of the California Building Code is amended to read: 1705.3 Concrete construction. The special inspections and tests of concrete construction shall be as required by this section and Table 1705.3. Exception: Special inspections shall not be required for: 1. Isolated spread concrete footings of buildings three stories or less above grade plane that are fully supported on earth or rock, where the structural design of the footing is based on a specified compressive strength, f’c, no greater than 2,500 pound per square inch (psi) (17.2 Mpa). 2. Continuous concrete footings supporting walls of buildings three stories or less above grade plane that are fully supported on earth or rock where: 2.1. The footings support walls of light-frame construction; 2.2. The footings are designed in accordance with Table 1809.7; or 2.3. The structural design of the footing is based on a specified compressive strength, f ′c, no greater than 2,500 pounds per square inch (psi) (17.2 MPa), regardless of the compressive strength specified in the construction documents or used in the footing construction. 13 2019 Code Cycle ORD Amending Ch. 16.04 Building Code 3. Nonstructural concrete slabs supported directly on the ground, including pre- stressed slabs on grade, where the effective pre-stress in the concrete is less than 150 psi (1.03 MPa). 4. Concrete foundation walls constructed in accordance with Table 1807.1.6.2. 5. Concrete patios, driveways and sidewalks, on grade. 16.04.300 Table 1809.7 Prescriptive Footings Supporting Walls of Light-Frame Construction. Table 1809.7 of Chapter 18 of the California Building Code is amended to read: TABLE 1809.7 Prescriptive Footings Supporting Walls of Light-Frame Constructionabcd Number of Floors Supported by the Footing e Thickness of Foundation Wall (inches) Width of Footing (inches) Thickness of Footing (inches) Depth of Foundation Below Natural Surface of Ground or Finish Grade (inches) 1&2 8 15 8 20 3 8 18 8 30 Group U Occupancies 8 12 8 12 ADU Conversionsf 8 12 8 12 a. The ground under the floor shall be permitted to be excavated to the elevation of the top of the footing. b. Interior stud-bearing walls shall be permitted to be supported by isolated footings. The footing width and length shall be twice the width shown in this table, and footings shall be spaced not more than 6 feet on center. c. See Section 1905 for additional requirements for concrete footings of structures assigned to Seismic Design Category C, D, E or F. d. All foundations as required in the above Table shall be continuous and have a minimum of three #4 bars of reinforcing steel, except for one story, detached accessory buildings of Group U occupancy where two bars are required. e. Footings shall be permitted to support a roof in addition to the stipulated number of floors. Footings supporting roof only shall be as required for supporting one floor. f. If the existing detached accessory building is being converted to an Accessory Dwelling Unit (ADU) and the existing foundation is being utilized, then a designer, architect or engineer shall provide a letter that the existing foundation complies with the conditions above and is deemed structurally sound. 14 2019 Code Cycle ORD Amending Ch. 16.04 Building Code 16.04.305 Section 1905.1.7 ACI 318, Section 14.1.4. Section 1905.1.7 of Chapter 19 of the California Building Code is amended to read: 1905.1.7 ACI 318, Section 14.1.4. Delete ACI 318, Section 14.1.4, and replace with the following: 14.1.4 - Plain concrete in structures assigned to Seismic Design Category C, D, E or F. 14.1.4.1- Structures assigned to Seismic Design Category C, D, E or F shall not have elements of structural plain concrete, except as follows: (a) Left intentionally blank. (b) Isolated footings of plain concrete supporting pedestals or columns are permitted, provided the projection of the footing beyond the face of the supported member does not exceed the footing thickness. (c) Plain concrete footings supporting walls are permitted, provided the footings have at least three continuous longitudinal reinforcing bars not smaller than No. 4, with a total area of not less than 0.002 times the gross cross-sectional area of the footing except for one story, detached accessory buildings of Group U occupancy where two bars are required. A minimum of one bar shall be provided at the top and bottom of the footing. Continuity of reinforcement shall be provided at corners and intersections. 16.04.310 Section 2308.6 Wall Bracing. Section 2308.6 of Chapter 23 of the California Building Code is amended to read: . . . 2308.6.4 Braced Wall panel construction. For Methods DWB, WSP, SFB, PBS, PCP and HPS, each panel must be not less than 48 inches (1219 mm) in length, covering three stud spaces where studs are spaced 16 inches (406 mm) on center and covering two stud spaces where studs are spaces 24 inches (610 mm) on center. Braced wall panels less than 48 inches (1219 mm) in length shall not contribute toward the amount of required bracing. Braced wall panels that are longer than the required length shall be credited for their actual length. Vertical joints of panel sheathing shall occur over studs and adjacent panel joints shall be nailed to common framing members. Horizontal joints shall occur over blocking or other framing equal in size to the studding except where waived by the installation requirements for the specific sheathing materials. Sole plates shall be nailed to the floor framing in accordance with Section 2308.7 and top plates shall be connected to the framing above in accordance with Section 2308.6.7.2. Where joists are perpendicular to braced wall lines above, blocking shall be provided under and in line with the braced wall panels. 15 2019 Code Cycle ORD Amending Ch. 16.04 Building Code 2308.6.5 Alternate bracing. An alternate braced wall (ABW) or a portal frame with hold-downs (PFH) described in this section is permitted to substitute for a 48-inch (1219 mm) braced wall panel of Method DWB, WSP, SFB, PCP or HPS. Subsections 2308.6.1 through 2308.6.3 are unchanged. 16.04.315 Table 2308.6.1 – footnote b amended. Footnote “b” of table 2308.6.1 of Chapter 23 of the California Building Code is amended to read: b. Method GB, gypsum wallboard is prohibited in Seismic Design Categories D & E. 16.04.317 Table 2308.6.3(1) Bracing Methods. Table 2308.6.3(1) – Bracing Methods of Chapter 23 of the California Building Code is amended to add footnote “b” as follows: Table 2308.6.3(1) BRACING METHODS METHODS, MATERIAL MINIMUM THICKNESS FIGURE CONNECTION CRITERIAa Fasteners Spacing b. Method GB, gypsum wallboard is prohibited in Seismic Design Categories D & E. 16.04.320 Section 2308.9 Attachment of sheathing. Section 2308.9 of Chapter 23 of the California Building Code is added to read: 2308.9 Attachment of sheathing. Fastening of braced wall panel sheathing shall not be less than that prescribed in Table 2308.6.3(1) or 2304.10.1 Wall sheathing shall not be attached to framing members by adhesives. All braced wall panels shall extend to the roof sheathing and shall be attached to parallel roof rafters or blocking above with framing clips (18 gauge minimum) spaced at maximum 24 inches on center with four 8d nails per leg (total eight-8d nails per clip). Braced wall panels shall be laterally braced at each top corner and at maximum 24 inch intervals along the top plate of discontinuous vertical framing. 16.04.322 Chapter 31B – Public Pools. Chapter 31B of the California Building Code has been adopted in its entirety. The California Building Code, Chapter 31B shall apply to the construction, installation, renovation, alteration, addition, relocation, replacement or use of any public pool and its ancillary facilities, mechanical equipment and related piping. 16 2019 Code Cycle ORD Amending Ch. 16.04 Building Code 16.04.325 Section 3304.1 Excavation and fill. Section 3304.1 of Chapter 33 of the California Building Code is amended to read: 3304.1 Excavation and fill. Excavation and fill for buildings and structures shall be constructed or protected so as not to endanger life or property. Stumps and roots shall be removed from the soil to a depth of not less than 12 inches (305mm) below the surface of the ground in the area to be occupied by the building. Wood forms that have been used in placing concrete, if within the ground or between foundation sills and the ground, shall be removed before a building is occupied or used for any purpose. Wooden stakes shall notbe embedded in concrete. Before completion, loose or casual wood shall be removed from direct contact with the ground under the building. 16.04.330 2019 California Existing Building Code Adopted. The California Existing Building Code, 2019 Edition, Title 24, Part 10, which provides alternative building regulations for the rehabilitation, preservation restoration or relocation of existing buildings is adopted and hereby incorporated in this Chapter be reference and made a part hereof the same as if fully set forth herein. One copy of the California, 2019 Edition, has been filed for use and examination of the public in the Office of the Building Official of the City of Palo Alto. 16.04.335 2019 California Existing Building Code and International Existing Building Code Appendix Chapters Adopted. The following Appendix Chapters of the California Existing Building Code (CEBC), 2019 Edition, and International Existing Building Code (IEBC), 2018 Edition, are adopted and hereby incorporated in this Chapter be reference and made a part hereof the same as if fully set forth herein: A. CEBC Appendix A1 – Seismic Strengthening Provisions for Unreinforced Masonry Bearing Wall Buildings B. IEBC Appendix Chapter A2 – Earthquake Hazard Reduction in Existing Reinforced Concrete and Reinforced Masonry Wall Buildings with Flexible Diaphragms. C. CEBC Appendix A3 – Prescriptive Provisions for Seismic Strengthening of Cripple Walls and Sill Plate Anchorage of Light, Wood-Frame Residential Buildings D. CEBC Appendix A4 – Earthquake Risk Reduction in Wood-Frame Residential Buildings with Soft, Weak or Open Front Walls E. CEBC Appendix A5 – Referenced Standards 16.04.340 Section 503.17 – Suspended ceiling systems. Section 503.17 of the California Existing Building Code, Title 24, Part 10 is added to read: 503.17 Suspended ceiling systems. In existing buildings or structures, when a permit is issued for alterations or repairs, the existing suspended ceiling system within the area of the alterations or repairs shall comply with ASCE 7-16 Section 13.5.6. 17 2019 Code Cycle ORD Amending Ch. 16.04 Building Code 16.04.345 Section 503.18 - Mechanical and electrical equipment in Seismic Design Categories D, E, or F. Section 503.18 of the California Existing Building Code, Title 24, Part 10 is added to read: 503.18 Mechanical and electrical equipment in Seismic Design Categories D, E, or F . In existing buildings or structures, when a permit is issued for alteration or repairs, the existing mechanical and electrical equipment on the area of the roof shall comply with ASCE 7-16 Section 13.4 Nonstructural Component Anchorage. 16.04.350 Section 405.2.3.1 – Seismic Evaluation and Design Procedures for Repairs. Section 405.2.3.1 of the California Existing Building Code, Title 24, Part 10 is amended to read: 405.2.3.1 Evaluation and design procedures. The building shall be evaluated by a registered design professional, and the evaluation findings shall be submitted to the code official. The evaluation shall establish whether the damaged building, if repaired to its pre-damage state, would comply with the provisions of the California Building Code for load combinations that include wind or earthquake effects, except that the seismic forces shall be reduced seismic forces. Evaluation for earthquake loads shall be required if the substantial structural damage was caused by or related to earthquake effects or if the building is in Seismic Design Category C, D, E or F. The seismic evaluation and design shall be based on the procedures specified in the building code, ASCE 41 Seismic Evaluation and Upgrade of Existing Buildings. The procedures contained in Appendix A of the International Existing Building Code (IEBC) shall be permitted to be used as specified in Section 405.2.3.1. Wind loads for this evaluation shall be those prescribed in Section 1609. 405.2.3.1.1 CEBC level seismic forces. When seismic forces are required to meet the building code level, they shall be one of the following: 1. One hundred percent of the values in the building code. The R factor used for analysis in accordance with Chapter 16 of the building code shall be the R factor specified for structural systems classified as "Ordinary" unless it can be demonstrated that the structural system satisfies the proportioning and detailing requirements for systems classified as "intermediate" or "special". 2. Forces corresponding to BSE-1 and BSE-2 Earthquake Hazard Levels defined in ASCE 41. Where ASCE 41 is used, the corresponding performance levels shall be those shown in Table 405.2.3.1. 18 2019 Code Cycle ORD Amending Ch. 16.04 Building Code TABLE 405.2.3.1 ASCE 41 PERFORMANCE LEVELS RISK CATEGORY (BASED ON CBC TABLE 1604.5) PERFORMANCE LEVEL FOR USE WITH ASCE 41 BSE-1 EARTHQUAKE HAZARD LEVEL PERFORMANCE LEVEL FOR USE WITH ASCE 41 BSE-2 EARTHQUAKE HAZARD LEVEL * I Life Safety (LS) Collapse Prevention (CP) II Life Safety (LS) Collapse Prevention (CP) III Damage Control Limited Safety IV Immediate Occupancy (IO) Life Safety (LS) * Only applicable when Tier 3 procedure is used. 405.2.3.1.1 Reduced CEBC level seismic forces. When seismic forces are permitted to meet reduced building code levels, they shall be one of the following: 1. Seventy-five percent of the forces prescribed in the building code. The R factor used for analysis in accordance with Chapter 16 of the building code shall be the R factor as specified in Section 405.2.3.1.1. 2. In accordance with the California Existing Building Code and applicable chapters in Appendix A of the International Existing Building Code, as specified in Items a. through e. below. Structures or portions of structures that comply with the requirements of the applicable chapter in Appendix A shall be deemed to comply with the requirements for reduced building code force levels. a. The seismic evaluation and design of unreinforced masonry bearing wall buildings in Risk Category I or II are permitted to be based on the procedures specified in CEBC Appendix Chapter A1. b. Seismic evaluation and design of the wall anchorage system in reinforced concrete and reinforced masonry wall buildings with flexible diaphragms in Risk Category I or II are permitted to be based on the procedures specified in IEBC Appendix Chapter A2. c. Seismic evaluation and design of cripple walls and sill plate anchorage in residential buildings of light-frame wood construction in Risk Category I or II are permitted to be based on the procedures specified in CEBC Appendix Chapter A3 d. Seismic evaluation and design of soft, weak, or open-front wall conditions in multi-unit residential buildings of wood construction in Risk Category I or II are permitted to be based on the procedures specified in CEBC Appendix Chapter A4. e. Seismic evaluation and design of concrete buildings and concrete with masonry infill buildings in all risk categories are permitted to be based on the procedures specified in IEBC Appendix Chapter A5. 19 2019 Code Cycle ORD Amending Ch. 16.04 Building Code 3. Those associated with the BSE-1 Earthquake Hazard Level defined in ASCE 41 and the performance level as shown in Table 405.2.3.1. Where ASCE 41 is used, the design spectral response acceleration parameters SXS and SX1 shall not be taken less than seventy-five percent of the respective design spectral response acceleration parameters SDS and SD1 defined by the California Building Code and its reference standards. 16.04.355 2019 California Historical Building Code adopted. The California Historical Building Code, 2019 Edition, Title 24, Part 8 (authorized by Health and Safety Code Sections 18950 through 18961), which provides alternative building regulations for the rehabilitation, preservation, restoration, or relocation of designated historic buildings, is adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein. One copy of the California Historical Building Code, 2019 Edition, has been filed for use and examination of the public in the Office of the Building Official of the City of Palo Alto. SECTION 2. The Council adopts the findings for local amendments to the California Building Code, 2019 Edition, attached hereto as Exhibit “A” and incorporated herein by reference. SECTION 3. The Council finds that this ordinance is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the amendments herein adopted will have a significant effect on the environment. // // // // // // // // // // // 20 2019 Code Cycle ORD Amending Ch. 16.04 Building Code SECTION 4. This Ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Deputy City Attorney City Manager Director of Planning and Development Services Director of Administrative Services 21 2019 Code Cycle ORD Amending Ch. 16.04 Building Code Exhibit A FINDINGS FOR LOCAL AMENDMENTS TO CALIFORNIA BUILDING CODE AND CALIORNIA EXISTING BUILDING CODE Section 17958 of the California Health and Safety Code provides that the City may make changes to the provisions of the California Building Standards Code. Sections 17958.5 and 17958.7 of the Health and Safety Code require that for each proposed local change to those provisions of the California Building Standards Code which regulate buildings used for human habitation, the City Council must make findings supporting its determination that each such local change is reasonably necessary because of local climatic, geological, or topographical conditions. Local building regulations having the effect of amending the uniform codes, which were adopted by the City prior to November 23, 1970, were unaffected by the regulations of Sections 17958, 17958.5 and 17958.7 of the Health and Safety Code. Therefore, amendments to the uniform codes which were adopted by the City Council prior to November 23, 1970, and have been carried through from year to year without significant change, need no required findings. Also, amendments to provisions not regulating buildings used for human habitation do not require findings. Code: CBC Section Title Add Amended Deleted Justification (See below for keys) 101.1 Title T 105.5 Expiration T 109.6 Refunds T 501.2 Address Identification T 702A Wild Land-Urban Interface Fire Area T 902.1 Definition (Dual Sensor Carbon Monoxide and Smoke Alarm) - T 903.2 Where Automatic Sprinklers Required T 903.3.1.1 NFPA 13 Sprinkler Systems T 903.3.1.2 NFPA 13R Sprinkler Systems T 903.3.1.3 NFPA 13D Sprinkler Systems T 903.4.3 Floor Control Valves T 905.3.1 Standpipe Systems T 907.2.11 Single- and Multiple-Station Smoke Alarms T 1203.6.1 Ventilation of Weather-Exposed, Enclosed Assemblies G, T 1206.3.4 Roof Guardrails at Interior Courts T 1404.13 Projections Exposed to Weather G, T 1503.2.1 Flashing Locations T 22 2019 Code Cycle ORD Amending Ch. 16.04 Building Code 1612.1.1 Palo alto Flood Hazard Regulations C, T 1616.10.15 ASCE 7 Sec. 13.1.4 G 1705.3 Concrete Construction G Table 1809.7 Prescriptive Footings Supporting Walls of Light Frame Construction G,T 16.04.305 ACI 318, Section 14.1.4 G, T 2308.6 Wall Bracing G 2308.6.4 Braced wall panel construction G 2308.6.5 Alternate bracing G Table 2306.1 & Table 2308.6.3(1) Wall Bracing in Seismic Design Categories D & E G 2308.9 Attachment of Sheathing G Chapter 31B Public Pools G 3405.2.1 Evaluation and Design Procedures T Appendix H Signs G, T Appendix I Patio Covers C Appendix J; section J109.4 Drainage Across Property Lines T Appendix O Emergency Housing C, G, T Code: CEBC Section Title Add Amended Deleted Justification (See below for keys) 403.13 Excavation and fill G 404.2.1 Suspended Ceiling Systems G 503.18 Mechanical and electrical equipment in Seismic Design Categories D, E, or F G CEBC Appendix A1 Seismic Strengthening Provisions for Unreinforced Masonry Bearing Wall Buildings G IEBC Appendix A2 Earthquake Hazard Reduction in Existing Reinforced Concrete and Reinforced Masonry Wall Buildings with Flexible Diaphragms. G CEBC Appendix A3 Prescriptive Provisions for Seismic Strengthening of Cripple Walls and Sill Plate Anchorage of Light, Wood-Frame Residential Buildings G 23 2019 Code Cycle ORD Amending Ch. 16.04 Building Code CEBC Appendix A4 Earthquake Risk Reduction in Wood- Frame Residential Buildings with Soft, Weak or Open Front Walls G IEBC Appendix A5 Earthquake Hazard Reduction in Existing Concrete Buildings G 24 2019 Code Cycle ORD Amending Ch. 16.04 Building Code Key to Justification for Amendments to Title 24 of the California Code of Regulations C This amendment is justified on the basis of a local climatic condition. The seasonal climatic conditions during the late summer and fall create severe fire hazards to the public health and welfare in the City. The hot, dry weather frequently results in wild land fires on the brush covered slopes west of Interstate 280. The aforementioned conditions combined with the geological characteristics of the hills within the City create hazardous conditions for which departure from California Building Standards Code is required. G This amendment is justified on the basis of a local geological condition. The City of Palo Alto is subject to earthquake hazard caused by its proximity to San Andreas fault. This fault runs from Hollister, through the Santa Cruz Mountains, epicenter of the 1989 Loma Prieta earthquake, then on up the San Francisco Peninsula, then offshore at Daly City near Mussel Rock. This is the approximate location of the epicenter of the 1906 San Francisco earthquake. The other fault is Hayward Fault. This fault is about 74 mi long, situated mainly along the western base of the hills on the east side of San Francisco Bay. Both of these faults are considered major Northern California earthquake faults which may experience rupture at any time. Thus, because the City is within a seismic area which includes these earthquake faults, the modifications and changes cited herein are designed to better limit property damage as a result of seismic activity and to establish criteria for repair of damaged properties following a local emergency. T The City of Palo Alto topography includes hillsides with narrow and winding access, which makes timely response by fire suppression and emergency response vehicles difficult. Palo Alto is contiguous with the San Francisco Bay, resulting in a natural receptor for storm and waste water run-off. Also the City of Palo Alto is located in an area that is potentially susceptible to liquefaction during a major earthquake. The surface condition consists mostly of stiff to dense sandy clay, which is highly plastic and expansive in nature. The aforementioned conditions within the City create hazardous conditions for which departure from California Building Standards Code is warranted. 1 2019 Code Cycle ORD Amending Ch. 16.06 Residential Code NOT YET ADOPTED Ordinance No. Ordinance of the Council of the City of Palo Alto Repealing Chapter 16.06 of the Palo Alto Municipal Code and Amending Title 16 to Adopt a New Chapter 16.06, California Residential Code, 2019 Edition, and Local Amendments and Related Findings The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Chapter 16.06 of Palo Alto Municipal Code is hereby amended by repealing the Chapter in its entirety and adopting a new Chapter 16.06 to read as follows: 16.06.010 2019 California Residential Code adopted. The California Residential Code, 2019 Edition, Title 24, Part 2.5 of the California Code of Regulations, together with those omissions, amendments, exceptions and additions thereto, is adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein. Unless superseded and expressly repealed, references in City of Palo Alto forms, documents and regulations to the chapters and sections of the former California Code of Regulations, Title 24, 2016, shall be construed to apply to the corresponding provisions contained within the California Code of Regulations, Title 24, 2019. Ordinance No. 5479 of the City of Palo Alto and all other ordinances or parts of ordinances in conflict herewith are hereby suspended and expressly repealed. Wherever the phrases "California Residential Code" or "Residential Code" are used in this code or any ordinance of the city, such phrases shall be deemed and construed to refer and apply to the California Residential Code, 2019 Edition, Title 24, Part 2.5 of the California Code of Regulations, as adopted by this Chapter. One copy of the California Residential Code, 2019 Edition, has been filed for use and examination of the public in the Office of the Building Official of the City of Palo Alto. 16.06.020 2019 California Residential Code Appendix Chapters adopted. The following Appendix Chapters of the California Residential Code, 2019 Edition, are adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein: A. Appendix H – Patio Covers B. Appendix J – Existing Building and Structures C. Appendix K – Sound Transmission D. Appendix V – Swimming Pool Safety Act 2 2019 Code Cycle ORD Amending Ch. 16.06 Residential Code 16.06.030 Cross - References to California Residential Code. The provisions of this Chapter contain cross-references to the provisions of the California Residential Code, 2019 Edition, in order to facilitate reference and comparison to those provisions. 16.06.40 Section 1.11.2.1.1 Duties and powers of the enforcing agency/Enforcement is amended with the following language: Section 1.11.2.1.1 Duties and powers of the enforcing agency/Enforcement The responsibility for enforcement of building standards adopted by the State Fire Marshal and published in the California Building Standards Code relating to fire and panic safety and other regulations of the State Fire Marshal shall, except as provided in Section 1.11.2.1.2, be as follows: 1. The city, county or city and county with jurisdiction in the area affected by the standard or regulation shall delegate the enforcement of the building standards relating to fire and panic safety and other regulations of the State Fire Marshal as they relate to Group R-3 occupancies, as described in Section 310.1 of Part 2 of the California Building Standards Code, to both enforcement divisions specific to their areas of enforcement disciplines: 1.1 The chief of the fire authority of the city, county or city and county, or an authorized representative and; 1.2. The chief building official of the city, county or city and county, or an authorized representative. 16.06.050 Violations -- Penalties. It is unlawful for any person to violate any provision or to fail to comply with any of the requirements of this Chapter or any permits, conditions, or variances granted under this Chapter. Violators shall be subject to any penalty or penalties authorized by law, including but not limited to: administrative enforcement pursuant to Chapters 1.12 and 1.16 of the Palo Alto Municipal Code; and criminal enforcement pursuant to Chapter 1.08 of the Palo Alto Municipal Code. Each separate day or any portion thereof during which any violation of this Chapter occurs or continues shall be deemed to constitute a separate offense. When the chief building official determines that a violation of this Chapter has occurred, the chief building official may record a notice of pendency of code violation with the Office of the County Recorder stating the address and owner of the property involved. When the violation has been corrected, the chief building official shall issue and record a release of the notice of pendency of code violation. 16.06.060 Enforcement -- Criminal Enforcement Authority. The employee positions designated in this section are authorized to exercise the authority provided in California Penal Code section 836.5 for violations of this Chapter. The designated employee positions are: (1) chief building official, (2) assistant chief building official, (3) building 3 2019 Code Cycle ORD Amending Ch. 16.06 Residential Code inspection manager, and (4) code enforcement officer. 16.06.070 Local Amendments. The provisions of this Chapter shall constitute local amendments to the cross-referenced provisions of the California Residential Code, 2019 Edition, and shall be deemed to replace the cross- referenced sections of said Code with the respective provisions set forth in this Chapter. 16.06.080 Section R101.1 Title is amended to read: R101.1 Title These provisions shall be known as the Residential Code for One- and Two- family Dwellings of City of Palo Alto, and shall be cited as such and will be referred to herein as “this code.” 16.06.090 Section R105.1.1 Demolition permits is added to read: R105.1.1 Demolition permits. In addition to other requirements of law, every person seeking a permit to demolish a unit used for residential rental purposes shall furnish an affidavit or declaration under penalty of perjury that the unit proposed to be demolished is vacant, or that notice to vacate has been given to each tenant lawfully in possession thereof as required by law or by the terms of such tenancy. No work or demolition shall begin upon any portion of such a unit until each and every portion has been vacated by all tenants lawfully in possession thereof. 16.04.100 Section R105.5 Expiration is amended to read: R105.5 Expiration. Every permit issued shall become invalid unless the work on the site authorized by such permit is commenced within 12 months after its issuance, or if the work authorized on the site by such permit is suspended or abandoned for a period of 12 months after the time the work is commenced. The chief building official is authorized to grant, in writing, one or more extensions of time, for periods not more than 180 days each and may require: 1) that the construction documents be revised to partially or fully comply with current codes, and 2) payment of a fee. Extensions shall be requested in writing and justifiable cause demonstrated. For the purpose of this section, failure to progress a project to the next level of required inspection shall be deemed to be suspension of the work. 16.06.110 Section R108.5 Refunds is amended to read: R108.5 Refunds. The building official or permit center manager may authorize the refund of any fee paid hereunder which was erroneously paid or collected. The building official or permit center manager may authorize the refund of not more than eighty 4 2019 Code Cycle ORD Amending Ch. 16.06 Residential Code percent (80%) of the permit fee paid when no work has occurred under a permit issued pursuant to this Chapter. The building official or permit center manager may authorize the refund of not more than eighty percent (80%) of the Plan Review Fee paid when a permit application is withdrawn or canceled before any plan review work has started. 16.06.120 Section R109.1.3 Floodplain inspections is amended to read: R109.1.3 Floodplain inspections. In flood hazard areas, upon placement of the lowest floor, including the basement, and prior to further vertical construction, the elevation certification shall be submitted to City Public Works Engineering for inspection approval prior to foundation inspection by city building inspection. 16.06.130 Section R109.5 Re-inspection fees assessed/authorized is added to read: R109.5 Re-inspection fees. A Re-Inspection Fee may be assessed/authorized by the building official or building inspection supervisor for each re-inspection required when work for which an inspection is requested is not ready for inspection or when required corrections noted during prior inspections have not been completed. A “Re-Inspection Fee” may be assessed/authorized when: 1. The inspection record card is not posted or otherwise available on the work site; or 2. The approved plans are not readily available for the inspector at the time of inspection; or 3. The inspector is unable to access the work at the time of inspection; or 4. When work has substantially deviated from the approved plans without the prior approval of the building official. 5. When a Re-Inspection Fee is assessed, additional inspection of the work will not be performed until the fee has been paid. 16.06.140 Section R110.1 Use and occupancy is amended to read: R110.1 Use and occupancy. A building or structure shall not be used or occupied, and a change of occupancy or change of use of a building or structure or portion thereof shall not be made, until the building official has issued a certificate of occupancy therefor as provided herein. Issuance of a certificate of occupancy shall not be construed as an approval of a violation of the provisions of this code or of other ordinances of the jurisdiction. Certificates presuming to give authority to violate or cancel the provisions of this code or other ordinances of the jurisdiction shall not be valid. Exceptions: Certificates of occupancy are not required for: 1. Work exempt from permits under Section 105.2 2. Accessory buildings or structures 3. Group R - Division 3 occupancies 4. Group U occupancies 16.06.150 Section R202 amended – Definitions added. 5 2019 Code Cycle ORD Amending Ch. 16.06 Residential Code Section R202 of the California Residential Code is amended to include the following definition: WILDLAND-URBAN INTERFACE FIRE AREA is a geographical area identified by the State of California as a “Fire Hazard Severity Zone” in accordance with Public Resources Code Sections 4201 through 4202 and Government Code Sections 51175 through 51189, or other areas designated by the enforcing agency to be at a significant risk from wildfires. Within the city limits of the City of Palo Alto, “Wildland-Urban Fire Interface Area” shall also include all areas west of Interstate 280, and all other areas recommended as a “Very High Fire Hazard Severity Zone” by the Director of the California Department of Forestry. 16.06.160 Table 301.2(1) Climatic and Geographic Design Criteria: Section Table 301.2(1) of the California Residential Code is added to read: TABLE R301.2(1) CLIMATIC AND GEOGRAPHIC DESIGN CRITERIA GROUND SNOW LOAD WIND DESIGN SEISMIC DESIGN CATEGORY SUBJECT TO DAMAGE FROM Speed (mph) Topographic effects Weathering Frost line depth Termite 0 110 No D0 thru E Negligible 5” Very High WINTER DESIGN TEMP. (OF) ICE BARRIER UNDERLAYEMENT REQUIRED FLOOD HAZARDS AIR FREEZING INDEX MEAN ANNUAL TEMP. (OF) 40 No See Footnotes p thru r 0 55 p The City of Palo Alto entered National Flood Insurance Program in 1979. q The effective date of the current Flood Insurance Study and Flood Insurance Rate Map is May 18, 2009. r The panel numbers and dates of all currently effective FIRMs and FBFMs: 06085CIND0A, 06085C0010H, 06085C0015H through 06085C0019H, 06085C0030H, 06085C0036H , 06085C0038H , 06085C0180H , 06085C0185H ( May 18, 2009 for all) 16.06.165 Section R310 Emergency escape and rescue openings: Section R310 of the California Residential Code is amended to read: R310.1 Emergency escape and rescue opening required. Basements, habitable attics and every sleeping room shall have not less than one operable emergency escape and rescue opening. Where basements contain one or more sleeping rooms, an emergency escape and rescue opening shall be required in each sleeping room. Emergency escape 6 2019 Code Cycle ORD Amending Ch. 16.06 Residential Code and rescue openings shall open directly into a public way, or to a yard or court that opens to a public way. Exceptions: 1. Storm shelters and basements used only to house mechanical equipment not exceeding a total floor area of 200 square feet ( 18.58 m2) 16.06.170 Section R310.2.3.3 Window well fall protection: Section R310.2.3.3 of the California Residential Code is added to read: R310.2.3.3 Window well fall protection. Window wells with a vertical depth greater than 30 inches shall have guards on all sides. The guards shall be provided in accordance with Section R312.1. Openings shall comply with Section R312.1.3. Access ladder shall comply with Section R310.2.3.1 and shall extend from the bottom of the well to the top of the guard. 16.06.180 Section R310.4.1 Security bars: Section R310.4.1 of the California Residential Code is added to read: R310.4.1 Security bars. Fire Department plan check review and approval of all security bar submittals shall be required prior to the issuance of a Building Permit. 16.06.190 Section R313.2 One- and two-family dwellings automatic fire sprinkler systems. Section R313.2 of the California Residential Code is amended to read: R313.2 One- and two-family dwellings automatic fire sprinkler systems. Approved automatic sprinkler systems in new buildings and structures and in existing modified buildings and structures, shall be provided in the locations described in this section. Automatic fire sprinklers shall be installed per the requirements set forth in Sections 903.2.1 through 903.2.18 of the California Building Code and as follows, whichever is the more restrictive: 1. An automatic sprinkler system shall be provided throughout all new buildings and structures. Exception: New residential occupancies, buildings or structures that do not exceed 350 square feet of building area. 2. An automatic sprinkler system shall be provided for all existing buildings or structures where modifications have been determined by the Building Official to trigger requirements for seismic retrofit. 3. An automatic sprinkler system shall be provided throughout all existing buildings when modifications are made that create an increase in fire area 7 2019 Code Cycle ORD Amending Ch. 16.06 Residential Code to more than 3600 square feet or when the addition is equal or greater than 50% of the existing building square footage whichever is more restrictive. 4. An automatic sprinkler system shall be provided throughout all new basements regardless of size and throughout existing basements that are expanded by more than 50% or is conditioned for use. If the addition is only the basement, then only the basement is required to be fire sprinkler protection. 5. An automatic sprinkler system shall be installed throughout when either the roof structure and/or exterior wall structure have been removed and/or replaced by at least 50% of the existing structure. 6. An automatic sprinkler system shall be installed throughout when any change in use or occupancy creating a more hazardous fire/life safety condition, as determined by the Fire Chief. 16.04.193 Section R313.1.1 – Design and installation. Section R313.1.1 of the California Residential Code is amended to read as follows: R313.1.1 Design and installation. Where allowed, automatic sprinkler systems installed in townhouses shall be installed throughout in accordance with NFPA 13D and State and local standards. 16.04.195 Section R313.2.1 – Design and installation. Section R313.2.1 of the California Residential Code is amended to read as follows: R313.2.1 Design and installation. R313.2.1 Design and installation. Where allowed, automatic sprinkler systems installed in one-and two-family detached dwellings shall be installed throughout in accordance with NFPA 13D and Stat and local standards. 16.06.200 Section R314.1– Smoke detection and notification. Section R314.1 of the California Residential Code is amended to read: R314.1 Smoke detection and notification. Listed single- and multiple-station smoke alarms complying with UL 217 shall be installed in accordance with the California Fire Code Sections 907.2.11.1 through 907.2.11.5 and manufacturer’s installation and use instructions. Smoke alarms and smoke detectors shall be in compliance with this code or subject to the provisions of the Health and Safety Code, they shall also be listed and approved for rapid response to smoldering synthetic materials. All smoke 8 2019 Code Cycle ORD Amending Ch. 16.06 Residential Code alarms or detectors shall be of the photoelectric type or shall have equivalent detection capabilities in compliance with UL 217. Exception: A combination photoelectric/ionization smoke alarm or detector may be used if located no closer than 20 feet to a kitchen, bathroom, fireplace or woodburning stove. 16.06.205 Section R319.1 Address numbers. The following subsections are added to Section R319.1 of the California Residential Code: R319.1.1 Address illumination. Address identification required by Section R319.1 shall be illuminated. R319.1.2 Address identification size. Address numbers and letters shall be sized as follows: 1. When the structure is between thirty-six (36) and fifty (50) feet from the road or other emergency means of access, a minimum of one-half inch (0.5”) stroke by six inches (6”) high is required. 2. When the structure is fifty (50) or more feet from the road or other emergency means of access, a minimum of one inch (1”) stroke by nine inches (9”) high is required. 16.06.210 Section R322.1 – General. The following paragraph is added to Section R322.1 of the California Residential Code: Palo Alto Flood Hazard Regulations. Notwithstanding the provisions of this section, all construction or development within a flood hazard area (areas depicted as a Special Flood Hazard Area on Flood Insurance Rate Maps published by the Federal Emergency Management Agency) shall comply with the City of Palo Alto Flood Hazard Regulations (Palo Alto Municipal Code Chapter 16.52). Where discrepancies exist between the requirements of this code and said regulations, the provisions of said regulations shall apply. 16.06.220 Section R337.1.5 Vegetation management compliance. Section R337.1.5 of the California Residential Code is amended to read: R337.1.5 Vegetation management compliance. Prior to building permit final approval, the property shall be in compliance with the vegetation management requirements prescribed in California Fire Code section 4906, including California Public Resources Code 4291 or California Government Code Section 51182. Acceptable methods of compliance inspection and documentation shall be determined by the enforcing agency and may include any of the following: 1. Local, state, or federal fire authority or designee authorized to enforce vegetation management requirements. 9 2019 Code Cycle ORD Amending Ch. 16.06 Residential Code 2. Enforcing agency - City of Palo Alto Fire Inspection shall inspect the aforementioned requirements and indicate compliance prior to building division final inspection sign- off. 3. Third party inspection and certification authorized to enforce vegetation management requirements. 4. Property owner certification authorized by the enforcing agency. 16.06.230 Section R403.1.3 Footing and stem wall reinforcing in Seismic Design Categories D0, D1, and D2. Section R403.1.3 of the California Residential Code is amended to read: R403.1.3 Footing and stem wall reinforcing in Seismic Design Categories D0, D1, and D2. Concrete footings located in Seismic Design Categories D0, D1 and D2, as established in Table R301.2(1), shall have not fewer than three No. 4 horizontal bars. One No. 4 horizontal bar shall be installed within 12 inches (305 mm) of the top of the stem wall and two No. 4 horizontal bars shall be located 3 to 4 inches (76 mm to 102 mm) from the bottom of the footing. R403.1.3.1 Concrete stem walls with concrete footings. In Seismic Design Categories D0, D1 and D2 where a construction joint is created between a concrete footing and a stem wall, not fewer than one No. 4 vertical bar shall be installed at not more than 4 feet (1219 mm) on center. The vertical bar shall have a standard hook and extend to the bottom of the footing and shall have support and cover as specified in Section R403.1.3.5.3 and extend not less than 14 inches (357 mm) into the stem wall. Standard hooks shall comply with Section R608.5.4.5. Not fewer than one No. 4 horizontal bar shall be installed within 12 inches (305 mm)of the top of the stem wall an two No. 4 horizontal bars shall be located 3 to 4 inhces (76 mm to 102 mm) from the bottom of the footing. R403.1.3.2 Masonry stem walls with concrete footings. In Seismic Design Categories D0, D1 and D2 where a grouted masonry stem wall is supported on a concrete footing, not fewer than one No. 4 vertical bar shall be installed at not more than 4 feet (1219 mm) on center. The vertical bar shall have a standard hook and extend to the bottom of the footing and have support and cover as specified in Section R403.1.3.5.3 and extend not less than 14 inches (357 mm) into the stem wall. Standard hooks shall comply with Section R608.5.4.5. Not fewer than one No. 4 horizontal bar shall be installed within 12 inches (305 mm) of the top of the wall and two No. 4 horizontal bars shall be located 3 to 4 inches (76 mm to 102 mm) from the bottom of the footing. Masonry stem walls shall be solid grouted. In Seismic Design Categories D0, D1 and D2 masonry stem walls without solid grout and vertical reinforcing are not permitted. 16.06.240 Section R403.1.8 – Foundations on expansive soils. Section R403.1.8 of the California Residential Code is amended to read: 10 2019 Code Cycle ORD Amending Ch. 16.06 Residential Code R403.1.8 Foundations on expansive soils. Foundations and floor slabs for buildings located on expansive soils shall be designed in accordance with Section 1808.6 or Table 1809.7 of the California Building Code. Table 1809.7 of the California Building Code is added and amended to read: TABLE 1809.7 Prescriptive Footings Supporting Walls of Light-Frame Constructionabcd Number of Floors Supported by the Footing e Thickness of Foundation Wall (inches) Width of Footing (inches) Thickness of Footing (inches) Depth of Foundation Below Natural Surface of Ground or Finish Grade (inches) 1&2 8 15 8 20 3 8 18 8 30 Group U Occupancies 8 12 8 12 ADU Conversionsf 8 12 8 12 a) The ground under the floor shall be permitted to be excavated to the elevation of the top of the footing. b) Interior stud-bearing walls shall be permitted to be supported by isolated footings. The footing width and length shall be twice the width shown in this table, and footings shall be spaced not more than 6 feet on center. c) See Section 1905 of California Building Code for additional requirements for concrete footings of structures assigned to Seismic Design Category C, D, E or F. d) All foundations as required in the above Table shall be continuous and have a minimum of three #4 bars of reinforcing steel, except for one story, detached accessory buildings of Group U occupancy where two bars are required. e) Footings shall be permitted to support a roof in addition to the stipulated number of floors. Footings supporting roof only shall be as required for supporting one floor. f) If the existing detached accessory building is being converted to an Accessory Dwelling Unit (ADU) and the existing foundation is being utilized, then a designer, architect or engineer shall provide a letter that the existing foundation complies with the conditions above and is deemed structurally sound. 11 2019 Code Cycle ORD Amending Ch. 16.06 Residential Code 16.06.245 Section R504.3.1 Projections exposed to weather. Section R504.3.1 of the California Residential Code is added to read: R504.3.1 Projections exposed to weather. Floor projections exposed to the weather and sealed underneath, including but not limited to balconies, landings, decks, and stairs shall be constructed of naturally durable wood, preservative-treated wood, corrosion-resistant (e.g. galvanized) steel, or similar approved materials. 16.06.247 Section R602.10.4.5 Limits on methods GB and PCP. Section R602.10.4.5 of the California Residential Code is added to read: R602.10.4.5 Limits on methods GB and PCP. In Seismic Design Categories D0, D1, and D2, Method GB is not permitted for use as an intermittent braced wall panels, but gypsum board is permitted to be installed when required by this Section to be placed on the opposite side of the studs form other types of braced wall panel sheathing. In Seismic Design Categories D0, D1, and D2, the use of Method PCP is limited to one-story single family dwelling and accessory structures. 16.06.250 Table R602.10.3(3) – Bracing requirements based on seismic design category. Footnote e to Table R602.10.3(3) is amended to read as follows: g. In Seismic Design Categories D0, D1 and D2, Method GB is not permitted and PCP is limited to one-story dwellings and accessory structures. 16.06.253 Section R703.8.5.1 Locations. Section R703.8.5.1 of the California Residential Code is added to read: R703.8.5.1 Locations. Flashing shall be installed at wall and roof intersections, gutters, wherever there is a change in roof slope or direction, and around roof openings. Where flashing is of metal, the metal shall be corrosion resistant with a thickness of not less than 0.019 inches (0.483 mm) (e.g. no. 26 galvanized sheet) and shall be primed and painted. 16.06.255 Section R806.6 Ventilation of weather-exposed enclosed assemblies. Section R806.6 of the California Residential Code is added to read: R806.6 Ventilation of weather-exposed enclosed assemblies. Exterior projecting elements and appurtenances exposed to the weather and sealed underneath, including but not limited to balconies, landings, decks, and stairs, shall have cross ventilation for each separate enclosed space by ventilation openings protected against the entrance of rain and snow. Blocking and bridging shall be arranged so as not to interfere with the movement of air. The net free ventilating area shall not be less than 1/150th of the area of the space ventilated. Ventilation openings shall comply with Section R806.1 . An access panel of sufficient size shall be provided on the underside of the enclosed space to allow for periodic inspection. Exceptions: 1. An access panel is not required where the exterior coverings applied to the underside of joists are easily removable using only common tools. 12 2019 Code Cycle ORD Amending Ch. 16.06 Residential Code 2. Removable soffit vents 4 inches minimum in width can be used to satisfy both ventilation and access panel requirements. 16.06.260 Section R902.1.4 – Roofing requirements in a Wildland-Urban Interface Fire Area. Section R902.1.4 of the California Residential Code is amended to read: R902.1.4 Roofing requirements in a Wild Land-Urban Interface Fire Area. The entire roof covering on new structures and existing structures on which more than 50 percent of the total roof area is replaced within any one-year period, and any roof covering applied in the alteration, repair or replacement of roofs on existing structures, shall be a fire-retardant roof covering that is at least Class A. Roofing requirements for structures located in a Wildland-Urban Interface Fire Area shall also comply with Section R337.5. 16.06.270 Section R1003.9.2.1 – Repairs, replacements and alterations. Section R1003.9.2.1 is added to the California Residential Code to read: R1003.9.2.1 Repairs, replacements and alterations. When any repair, replacement or alteration to the roof of an existing structure is performed, a spark arrester shall be installed on the existing chimney in accordance with Section R1003.9.2. 16.06.280 Section AJ103 – Preliminary Meeting. Section AJ103 of Appendix J of the California Residential Code is amended to read: Section AJ103.1 General. If a building permit is required at the request of the prospective permit applicant, the building official or his or her designee may meet with the prospective applicant to discuss plans for any proposed work under these provisions prior to the application for the permit. The purpose of this preliminary meeting is for the building official to gain an understanding of the prospective applicant’s intentions for the proposed work, and to determine, together with the prospective applicant, the specific applicability of these provisions. SECTION 2. The Council adopts the findings for local amendments to the California Residential Code, 2013 Edition, attached hereto as Exhibit “A” and incorporated herein by reference. SECTION 3. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the amendments herein adopted will have a significant effect on the environment. // // 13 2019 Code Cycle ORD Amending Ch. 16.06 Residential Code SECTION 4. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABS TENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Senior Deputy City Attorney City Manager Director of Planning & Development Services Director of Administrative Services 14 2019 Code Cycle ORD Amending Ch. 16.06 Residential Code Exhibit A FINDINGS FOR LOCAL AMENDMENTS TO CALIFORNIA RESIDENTIAL CODE (CRC) Section 17958 of the California Health and Safety Code provides that the City may make changes to the provisions of the California Building Standards Code. Sections 17958.5 and 17958.7 of the Health and Safety Code require that for each proposed local change to those provisions of the California Building Standards Code which regulate buildings used for human habitation, the City Council must make findings supporting its determination that each such local change is reasonably necessary because of local climatic, geological, or topographical conditions. Code: CRC Section Title Add Deleted Amended Justification (See below for keys) R101.1 Title T R105.5 Expiration T R 202 Definition (Dual Sensor Carbon Monoxide and Smoke Alarm) T Table R301.2(1) Climatic and Geographic Design Criteria C, G, T R310 Emergency Escape and Rescue Openings C, T R310.2.3.3 Window Well Fall Protection T R 310.4.1 Security Bars T R313.1.1 Design and installation T R 313.2 One and Two Family Dwellings Automatic Spr. Syst. T R313.2.1 Design and installation T R313.3.1.1 Required sprinkler locations T R 314.1 Smoke Detection and Notification C, T R 319.1 Address Identification T R 322.1 Flood Hazard Regulations T R 327.1.5 Vegetation Management Compliance T R403.1.3 Footing and stem wall reinforcing in Seismic Design Categories D0, D1, and D2 G R 403.1.8 Foundation on expansive Soils G, T R 504.3.1 Projections exposed to weather G, T R602.10.4.5 Limits on methods GB and PCP G Table R602.10.3(3) Bracing Requirements Based on Seismic Design Category G R 703.8.5.1 Flashing Locations T R 806.6 Ventilation of Weather-Exposed, Enclosed Assemblies G, T R902.1.4 Roofing Requirements in Wildland- Urban Interface Fire Area T R1003.9.2.1 Repairs, Replacements and Alterations T Appendix H Patio Covers C Appendix J Existing Building and Structures C, T Appendix K Sound Transmission C Appendix V Swimming Pool Safety Act C, G AJ103, AJ103.1 Preliminary Meeting, General C, G Key to Justification for Amendments to Title 24 of the California Code of Regulations C This amendment is justified on the basis of a local climatic condition. The seasonal climatic conditions during the late summer and fall create severe fire hazards to the public health and welfare in the City. The hot, dry weather frequently results in wild land fires on the brush covered slopes west of Interstate 280. The aforementioned conditions combined with the geological characteristics of the hills within the City create hazardous conditions for which departure from California Building Standards Code is required. G This amendment is justified on the basis of a local geological condition. The City of Palo Alto is subject to earthquake hazard caused by its proximity to San Andreas fault. This fault runs from Hollister, through the Santa Cruz Mountains, epicenter of the 1989 Loma Prieta earthquake, then on up the San Francisco Peninsula, then offshore at Daly City near Mussel Rock. This is the approximate location of the epicenter of the 1906 San Francisco earthquake. The other fault is Hayward Fault. This fault is about 74 mi long, situated mainly along the western base of the hills on the east side of San Francisco Bay. Both of these faults are considered major Northern California earthquake faults which may experience rupture at any time. Thus, because the City is within a seismic area which includes these earthquake faults, the modifications and changes cited herein are designed to better limit property damage as a result of seismic activity and to establish criteria for repair of damaged properties following a local emergency. T The City of Palo Alto topography includes hillsides with narrow and winding access, which makes timely response by fire suppression vehicles difficult. Palo Alto is contiguous with the San Francisco Bay, resulting in a natural receptor for storm and waste water run-off. Also the City of Palo Alto is located in an area that is potentially susceptible to liquefaction during a major earthquake. The surface condition consists mostly of stiff to dense sandy clay, which is highly plastic and expansive in nature. The aforementioned conditions within the City create hazardous conditions for which departure from California Building Standards Code is warranted. 1 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle Ordinance No. Ordinance of the Council of the City of Palo Alto Amending and Restating Chapter 16.14 of the Palo Alto Municipal Code, California Green Building Standards Code 2019 Edition, and Local Amendments and Related Findings, and Amending Section 16.12.035 of Chapter 16.12 to Make Conforming Changes The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Title 16 of the Palo Alto Municipal Code is hereby amended by repealing in its entirety Chapter 16.14 and adopting a new Chapter 16.14 to read as follows: 16.14.010 2019 California Green Building Standards Code adopted. The California Green Building Standards Code, 2019 Edition, Title 24, Part 11 of the California Code of Regulations, together with those omissions, amendments, exceptions and additions thereto, is adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein. Unless superseded and expressly repealed, references in City of Palo Alto forms, documents and regulations to the chapters and sections of the former California Code of Regulations, Title 24, shall be construed to apply to the corresponding provisions contained within the California Code of Regulations, Title 24, 2019. Ordinance No. 5481 of the City of Palo Alto and all other ordinances or parts of ordinances in conflict herewith are hereby suspended and expressly repealed. Wherever the phrases “California Green Building Standards Code” or “CALGreen” are used in this code or any ordinance of the City, such phrases shall be deemed and construed to refer and apply to the California Green Building Standards Code, 2019 Edition, as adopted and amended by this chapter. One copy of the California Green Building Standards Code, 2019 Edition, has been filed for use and examination of the public in the Office of the Building Official of the City of Palo Alto. 16.14.20 2019 California Green Building Standards Code Appendix Chapters adopted. The following Appendix Chapters of the California Green Building Standards Code, 2019 Edition, are adopted and hereby incorporated in this Chapter by reference and made a part hereof the same as if fully set forth herein: A. Appendix A4 - Residential Voluntary Measures (Tier 1 and Tier 2) B. Appendix A5 - Non-residential Voluntary Measures (Tier 1 and Tier 2) 2 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle 16.14.030 Cross-References to California Green Building Standards Code. The provisions of this Chapter contain cross-references to the provisions of the California Green Building Standards Code, 2019 Edition, in order to facilitate reference and comparison to those provisions. 16.14.040 Violations – Penalties. It is unlawful for any person to violate any provision or to fail to comply with any of the requirements of this Chapter or any permits, conditions, or variances granted under this Chapter. Violators shall be subject to any penalty or penalties authorized by law, including but not limited to: administrative enforcement pursuant to Chapters 1.12 and 1.16 of the Palo Alto Municipal Code; and criminal enforcement pursuant to Chapter 1.08 of the Palo Alto Municipal Code. Each separate day or any portion thereof during which any violation of this Chapter occurs or continues shall be deemed to constitute a separate offense. When the chief building official determines that a violation of this Chapter has occurred, the chief building official may record a notice of pendency of code violation with the Office of the County Recorder stating the address and owner of the property involved. When the violation has been corrected, the chief building official shall issue and record a release of the notice of pendency of code violation. 16.14.050 Enforcement -- Criminal Enforcement Authority. The employee positions designated in this section are authorized to exercise the authority provided in California Penal Code section 836.5 for violations of this Chapter. The designated employee positions are: (1) chief building official, (2) assistant chief building official, (3) building inspection manager, and (4) code enforcement officer. 16.14.060 Local Amendments. The provisions of this Chapter shall constitute local amendments to the cross-referenced provisions of the California Green Building Standards Code, 2019 Edition, and shall be deemed to replace the cross-referenced sections of said Code with the respective provisions set forth in this Chapter. 16.14.070 Section 202 amended – Definitions added. Section 202 of the California Green Building Standards Code is amended to include the following definitions: 3 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle CPAU: The City of Palo Alto Utilities Department. CALGREEN MANDATORY: CALGreen mandatory requirements are triggered for projects outlined in Section 301.1 Scope of the code, as amended. Projects that trigger only CALGreen mandatory measures are not required to fulfill CALGreen Tier 1 or Tier 2 as listed in Appendix A4 and A5. CALGREEN “TIER 1”: To achieve Tier 1 status, a project must comply with the requirements identified in Appendix A4, section A4.601.4 for residential projects and Appendix A5, section A5.601.2 for non-residential projects. The local adaptations to these appendices are identified in this ordinance. Projects subject to Tier 1 must fulfill CALGreen mandatory measures and CALGreen Tier 1 prerequisite measures. Tier 1 projects must also select the minimum amount of CALGreen elective measures required for Tier 1. CALGREEN “TIER 2”: To achieve Tier 2 status, a project must comply with the requirements identified in Appendix A4, section A4.601.5 for residential projects and Appendix A5, section A5.601.3 for non-residential projects. The local adaptations to these appendices are identified in this ordinance. Projects subject to Tier 2 must fulfill CALGreen mandatory measures and CALGreen Tier 2 prerequisite measures. Tier 2 projects must also select the minimum amount of CALGreen elective measures required for Tier 2. CALGREEN “TIER 1” AND “TIER 2” PREREQUISITE MEASURES: Projects subject to CALGreen Tier 1 or Tier 2 must fulfill the minimum prerequisites as described within Appendix A4, section A4.6 for residential projects and Appendix A5, section A5.6 for non-residential Projects, and local amendments within this ordinance. Tier 1 and Tier 2 prerequisite and elective measures are generally preceded by an “A”. CALGREEN “TIER 1” AND “TIER 2” ELECTIVE MEASURES: Projects subject to CALGreen Tier 1 or Tier 2 must fulfill the minimum number of electives as described within Appendix A4, section A4.6 for residential projects and Appendix A5, section A5.6 for non-residential Projects, and local amendments within this ordinance. Tier 1 and Tier 2 prerequisite and elective measures are generally preceded by an “A”. CALGREEN INSPECTOR: An individual certified through the International Code Council (ICC) CALGreen Inspector/Plans Examiner Certification for demonstrating knowledge and application of Green Building concepts during plan review and inspection. For projects that require a CALGreen Inspector/Plans Examiner verification, the Inspector must be contracted directly with the owner and may not be a contractor or employee of the design or construction firm. 4 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle MODEL WATER EFFICIENT LANDSCAPE ORDINANCE. The California Department of Water Resources Model Water Efficient Landscape Ordinance. PROCESS WATER. Process water means untreated wastewater, uncontaminated by toilet discharge or an unhealthy bodily waste, which is not a threat from unhealthful processing, manufacturing or operating wastes. SALVAGE. Salvage means the controlled removal of items and material from a building, construction, or demolition site for the purpose of on- or off-site reuse, or storage for later reuse. Examples include air conditioning and heating systems, columns, balustrades, fountains, gazebos, molding, mantels, pavers, planters, quoins, stair treads, trim, wall caps, bath tubs, bricks, cabinetry, carpet, doors, ceiling fans, lighting fixtures, electrical panel boxes, fencing, fireplaces, flooring materials of wood, marble, stone or tile, furnaces, plate glass, wall mirrors, door knobs, door brackets, door hinges, marble, iron work, metal balconies, structural steel, plumbing fixtures, refrigerators, rock, roofing materials, siding materials, sinks, stairs, stone, stoves, toilets, windows, wood fencing, lumber and plywood. SQUARE FOOTAGE. For application of green building requirements, square footage means all new square footage, including basement areas (7 feet or greater in height). 16.14.080 Section 301 amended – voluntary tiers added. Section 301 of the California Green Building Standards Code is amended to read: SECTION 301 GENERAL 301.1 Scope. Buildings shall be designed to include the green building measures specified as mandatory in the application checklists contained in this code and any applicable local amendments. In addition, the City requires the use of Voluntary Tiers, as provided in Appendices A4 and A5, for certain residential and non-residential new construction, additions, and alterations. 301.1.1 Residential additions and alterations. [HCD] The mandatory provisions of Chapter 4 shall be applied to additions and/or alterations of existing residential buildings where the addition and/or alteration increases the building's conditioned area, volume, or size. The requirements shall apply only to and/or within the specific area of the addition or alteration. 5 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle Tier 1 adopted (Residential). All residential building additions and/or alterations exceeding 1000 square feet must meet CALGREEN MANDATORY plus the Tier 1 requirements, as amended by this Chapter and as applicable to the scope of work. For Tier 1 projects, the area of alterations will include any construction or renovation to an existing structure other than repair or addition. Alterations include remodeling, reconstruction, historic restoration, changes or rearrangements of the structural parts or elements, and changes or rearrangement in the plan configuration of walls and full height partitions. Normal maintenance, reroofing, painting or wall papering, floor finishes, or replacement-in-kind of mechanical, plumbing and electrical systems are not alterations for the purposes of establishing scope of Tier 1 projects. The area of alteration should be limited to the footprint of the component(s) being altered. This does not exclude mandatory CALGreen requirements. Exception: Attached and detached Accessory Dwelling Units, ADU conversions of existing structures shall meet the California Green Building Standards Code Mandatory requirements only. 301.2 Low-rise and high-rise residential buildings. [HCD] The provisions of individual sections of CALGreen may apply to either low-rise residential buildings, high-rise residential buildings, or both. Individual sections will be designated by banners to indicate where the section applies specifically to low-rise only (LR) or high-rise only (HR). When the section applies to both low-rise and high-rise buildings, no banner will be used. 301.3 Non-residential additions and alterations. [BSC] The provisions of individual sections of Chapter 5 apply to building non-residential additions of 1,000 square feet or greater, and/or building alterations with a permit valuation of $200,000 or above (for occupancies within the authority of California Building Standards Commission). Code sections relevant to additions and alterations shall only apply to the portions of the building being added or altered within the scope of the permitted work. A code section will be designated by a banner to indicate where the code section only applies to newly constructed buildings [N] or to additions and alterations [A]. When the code section applies to both, no banner will be used. Tier 1 adopted. Non-residential alterations (including tenant improvements or renovations) of 5,000 square feet that include replacement of at least two of the following: HVAC system, building envelope, hot water system, or lighting system, must 6 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle comply with CALGREEN MANDATORY plus Tier 1 requirements, as amended by this Chapter and as applicable to the scope of work. Tier 2 adopted. Non-residential additions of 1000 square feet or greater must comply with CALGREEN MANDATORY plus Tier 2 requirements, as amended by this Chapter and as applicable to the scope of work. 301.1.2 Residential new construction – Tier 2 adopted. All newly constructed Residential Buildings must meet CALGREEN MANDATORY plus Tier 2 requirements, as amended by this Chapter and as applicable to the scope of work. 301.1.3 Exception: Free standing detached Accessory Dwelling Units of new construction shall meet the following: California Green Building Standards Code Mandatory plus Tier 2 prerequisite requiremnts. No Planning and Design electives. Two (2) Water Efficiency and Conservation electives. Two (2) Material Conservation and Resource Efficiency electives. 301.1.4301.1.2 One (1) Environmental Quality elective. 301.1.3 Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs). Attached and detached Accessory Dwelling Units, ADU conversions of existing structures that increases the building’s conditioned area and are less than 1,000 square feet shall meet the California Green Building Standards Code (CALGreen) Mandatory requirements only. ADU additions to existing residential buildings less than 1,000 square feet shall meet the CALGreen Mandatory requirements only. Junior Accessory Dwelling Units (JADUs) that increase the volume of the building’s conditioned space shall meet the CALGreen Mandatory requirements only. Tier 2 adopted. Free standing detached Accessory Dwelling Units of new construction shall meet the following: 1. California Green Building Standards Code (CALGreen) Mandatory plus Tier 2 prerequisite requirements. 2. No Planning and Design electives. 3. Two (2) Water Efficiency and Conservation electives. 4. Two (2) Material Conservation and Resource Efficiency electives. 5. One (1) Environmental Quality elective. 301.3.3 Non-residential new construction – Tier 2 adopted. All new non-residential construction must meet CALGREEN MANDATORY plus Tier 2 requirements, as amended by this Chapter and as applicable to the scope of work. 301.6 Special Inspector Requirements. Residential and non-residential project owners subject to CALGREEN MANDATORY plus Tier 1 or Tier 2 requirements shall contract a 7 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle Special Inspector in accordance with section 702.2 of CALGreen, as amended. 16.14.090 Section 702.2 Special Inspection. Section 702.2 of the California Green Building Standards Code is amended to read: 702.2 Special Inspection. When required by the enforcing agency, the owner or responsible entity acting as the owner’s agent shall employ one or more Special Inspectors to provide inspection or other duties necessary to substantiate compliance with this code. Special Inspectors shall demonstrate competence to the satisfaction of the enforcing agency for the particular type of inspection or task to be performed. In addition to other certifications or qualifications acceptable to the enforcing agency, the following certifications or education may be considered by the enforcing agency when evaluating the qualifications of a Special Inspector. The City shall maintain a list of pre- 8 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle approved Special Inspectors in accordance with this section. The owner shall contract a Special Inspector from the pre-approved list meeting one of the following; 1) Certification by a national or regional green building program: ICC Certified CALGreen Inspector/Plans Examiner: Contract a CALGreen Inspector to provide third-party verification of compliance prior to Permit Issuance and prior to Final Inspection. 2) Other programs acceptable to the enforcing agency. When required by the enforcing agency, the owner or responsible entity acting as the owner’s agent shall employ one or more Special Inspectors to provide inspection or other duties necessary to substantiate compliance with this code. Special Inspectors shall demonstrate competence to the satisfaction of the enforcing agency for the particular type of inspection or task to be performed. In addition, the Special Inspector shall have a certification from a recognized state, national or international association, as determined by the local agency. The city shall maintain a list of pre-approved Special Inspectors in accordance with this section. Note: Special Inspectors shall be independent entities with no financial interest in the materials or the project they are inspecting for compliance with this code. 16.14.100 Reserved. 16.14.110 Residential Projects. Chapter 4 Preface: Green building requirements for project type and scope. A preface is added to Chapter 4 of the California Green Building Standards Code to read: Preface - Green Building Requirements for Project Type and Scope. For design and construction of residential projects, the City of Palo Alto requires compliance with the mandatory measures of Chapter 4, in addition to use of Tier 1 and Tier 2 as specified in Palo Alto Municipal Code Chapter 16.14. See Section 202 for definitions on CALGREEN MANDATORY, Tier 1 prerequisites and electives, and Tier 2 prerequisites and electives. All elective measures are adopted as written under Appendix A4 unless otherwise indicated in this Section. 16.14.120 Section A4.104 Site Preservation. Section A4.104.1 is adopted as a Tier 1 and Tier 2 elective and is amended to read: 9 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle A4.104.1 Supervision and Education by a Special Inspector. Individuals with oversight authority on the project, as defined in section 16.14.090 of this code, who have been trained in areas related to environmentally friendly development, shall teach green concepts to other members of the builder’s staff and ensure training and written instruction has been provided to all parties associated with the development of the project. Prior to the beginning of the construction activities, the builder shall receive a written guideline and instruction specifying the green goals of the project. Note: Lack of adequate supervision and dissemination of the project goals can result in negative effects on green building projects. If the theme of green building is not carried through the project, the overall benefit can be substantially reduced by the lack of knowledge and information provided to the various entities involved with the construction of the project. 16.14.130 Section A4.105 Deconstruction and Reuse of Existing Materials. Section A4.105.1 Section A4.105.1 is adopted as an elective measure effective through June 30, 2020. Starting July 1, 2020 per Chapter 5.24 of Title 5 of the Municipal Code, Section A4.105.1 is not adopted as an elective measure. See Chapter 5.24 of the Municipal Code for the local deconstruction requirements. Section A4.105.2 is adopted as a Tier 1 and Tier 2 elective measure. A4.105.2 Reuse of materials. Nonhazardous materials which can be easily reused include but are not limited to the following: 1. Light fixtures 2. Plumbing fixtures 3. Doors and trim 4. Masonry 5. Electrical devices 6. Appliances 7. Foundations or portions of foundations Note: Reused material must be in compliance with the appropriate Title 24 requirements. 10 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle 16.14.140 Reserved.Section A4.106.5 Cool roof for reduction of heat island effect. Section A4.106.5 is not adopted as a Tier 1 prerequisite. Section A4.106.5 is adopted as a Tier 1 elective. 16.14.150 Section A4.106.8 Electric Vehicle (EV) Charging for New Construction. Section A4.106.8 is not adopted as a Tier 1 and Tier 2 elective measure. Projects must comply with the mandatory electric vehicle supply equipment (EVSE) requirements stated in Section A4.106.8, as amended. 16.14.160 Section A4.106.9 Bicycle Parking. Section A4.106.9 is not adopted as a Tier 1 and Tier 2 elective measure. Projects must comply with the bicycle parking requirements in the Palo Alto Municipal Code. 16.14.170 Section A4.106.10 Light Pollution Reduction. Section A4.106.10 is adopted as a Tier 1 and Tier 2 elective measure for all covered projects and is amended to read: A4.106.10 Light pollution reduction. Outdoor lighting systems shall be designed and installed to comply with the following: 1. The minimum requirements in the California Energy Code for Lighting Zones 1-4 as defined in Chapter 10 of the California Administrative Code; and 2. Backlight, Uplight and Glare (BUG) ratings as defined in IES TM-15-11; and 3. Allowable BUG ratings not exceeding those shown in Table A4.106.10; or 4. Comply with a local ordinance lawfully enacted pursuant to Section 101.7 of this code, whichever is more stringent. Projects may use an approved equal reference standard for light fixtures where BUG ratings are unavailable. Exceptions: 1. Luminaires that qualify as exceptions to the California Energy Code. 2. Emergency lighting. 3. One- and two-family dwellings. Note: The International Dark-Sky Association (IDA) and the Illuminating 11 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle Engineering Society of North America (IESNA) have developed a Model Lighting 12 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle Ordinance (MLO). The MLO was designed to help municipalities develop outdoor lighting standards that reduce glare, light trespass, and skyglow. The model ordinance and user guides for the ordinance may be accessed at the International Dark-Sky Association web site. 16.14.180 Section A4.203.1 Performance Approach for Newly Constructed Buildings. Sections A4.203.1 is not adopted as a Tier 1 and Tier 2 elective measure. Projects shall comply with Chapter 16.17 of the Palo Alto Municipal Code (Energy Reach Code). 16.14.190 Reserved. 16.14.200 Reserved. 16.14.210 Reserved. 16.14.220 Section A4.304.3 Irrigation Metering Device. Section A4.304.3 is adopted as a Tier 1 and Tier 2 elective measure and is amended to read: A4.304.3 Irrigation Metering Device. Dedicated irrigation meters from CPAU are to be installed in all new construction and rehabilitated landscapes when the landscape is greater than 1,000 square feet. 16.14.230 Section A4.305 Water Reuse Systems. Sections A4.305.1, A4.305.2, and A4.305.3 are adopted as Tier 1 and Tier 2 elective measures, and are amended to read: A4.305.1 Graywater. Alternative plumbing piping is installed to permit the discharge from the clothes washer and other fixtures (except toilets and kitchen sinks) to be used for an irrigation system in compliance with the California Plumbing Code. In the event that the whole house graywater system is installed in compliance with the California Plumbing Code, then this measure shall count as 3 electives. A4.305.2 Recycled Water Piping. Based on projected availability, dual water piping is installed for future use of recycled water at the following locations: 1. Interior piping for the use of recycled water is installed to serve all water closets, urinals, and floor drains. 13 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle 2. Exterior piping is installed to transport recycled water from the point of connection to the structure. Recycled water systems shall be designed and installed in accordance with the California Plumbing Code. A4.305.3 Recycled water for landscape irrigation. Recycled water piping is used for landscape irrigation. Section A4.305.4 is added as Tier 1 and Tier 2 prerequisite and shall read as follows: A4.305.4 Additions and alterations. All multifamily residential additions and alterations must install recycled water infrastructure for irrigation when the landscape area exceeds 1,000 square feet. 16.14.240 Section A4.403.1 Frost Protection Foundation Systems. Sections A4.403.1 is not adopted as a Tier 1 and Tier 2 elective measure. 16.14.250 Section A4.403.2 Reduction in cement use. Section A4.403.2 is not adopted as a Tier 1 and Tier 2 prerequisite. Section A4.403.2 is adopted as a Tier 1 and Tier 2 elective measure and shall read as: A4.403.2 Reduction in cement use. As allowed by the enforcing agency, cement used in foundation mix design shall be reduced as follows: Tier 1. Not less than a 20 percent reduction in cement. Tier 2: Not less than a 25 percent reduction in cement. Note: Products commonly used to replace cement in concrete mix designs include, but are not limited to: 1. Fly ash 2. Slag 3. Silica fume 4. Rice hull ash 16.14.255 Section A4.405.3.1 Recycled content Section A.4.405.3.1 is not adopted as a Tier 1 prerequisite. Section A4.405.3.1 is adopted as a Tier 1 elective. 14 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle 16.14.260 Section A4.408.1 Enhanced Construction Waste Reduction. Section A4.408.1 is adopted as mandatory and is amended to read: 15 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle A4.408.1 Enhanced Construction Waste Reduction. Nonhazardous construction and demolition debris generated at the site is diverted to recycle or salvage in compliance with the following: Projects with a given valuation of $25,000 or more must have at least an 80-percent reduction. Any mixed recyclables that are sent to mixed-waste recycling facilities shall include a qualified third party verified facility average diversion rate. Verification of diversion rates shall meet minimum certification eligibility guidelines, acceptable to the local enforcing agency. A4.408.1.1 Documentation. Documentation shall be provided to the enforcing agency which demonstrates compliance with all construction and demolition waste reduction requirements. 16.14.265 Section A4.504.1 Compliance with formaldehyde limits. Section A4.504.1 is adopted as a Tier 1 and Tier 2 elective measure. 16.14.270 Section A4.504.3 Thermal insulation. Section A4.504.3 is not adopted as a Tier 1 and Tier 2 prerequisite. Section A4.504.3 is adopted as a Tier 1 and Tier 2 elective measure. 16.14.280 Non-Residential Projects: Chapter 5 Preface Green Building Requirements for Project Type and Scope. A Preface is added to Chapter 5 of the California Green Building Standards Code to read: Preface – Green Building Requirements for Project Type and Scope. For design and construction of non-residential projects, the City requires compliance with the mandatory measures of Chapter 5, in addition to use of Tier 1 and Tier 2 as specified in Palo Alto Municipal Code Chapter 16.14. See Section 202 for definitions on CALGREEN MANDATORY, Tier 1 prerequisites and electives, and Tier 2 prerequisites and electives. All elective measures are adopted as written under Appendix A5 unless otherwise indicated in this Section. 16.14.290 Section 5.106.1.1 Local storm water pollution prevention. Section 5.106.1.1 Local ordinance is amended to read: 16 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle 5.106.1.1 Local ordinance. Newly constructed projects and additions shall comply with additional storm water pollution prevention measures as applicable. (See Chapter 16.11, Storm Water Pollution Prevention, of the Palo Alto Municipal Code.) 16.14.295 Section 5.106.8 Light pollution reduction Section 5.106.8 Light pollution reduction is amended to read: 5.106.8 Light pollution reduction. Outdoor lighting systems shall be designed and installed to comply with the following: 1. The minimum requirements in the California Energy Code for Lighting Zones 0-4 as defined in Chapter 10, Section 10-114 of the California Administrative Code; and 2. Backlight (B) ratings as defined in IES TM-15-11 (shown in Table A-1 in Chapter 8); 3. Uplight and Glare ratings as defined in California Energy Code (shown in Tables 130.2-A and 130.2-B in Chapter 8); and 4. Allowable BUG ratings not exceeding those shown in Table 5.106.8 [N]; or 5. Comply with a local ordinance lawfully enacted pursuant to Section 101.7, whichever is more stringent. Projects may use an approved equal reference standard for light fixtures where BUG ratings are unavailable. Exceptions: 1. Luminaires that qualify as exceptions in Section 140.7 of the California Energy Code. 2. Emergency lighting. 3. Building facade meeting the requirements in Table 140.7-B of the California Energy Code, Part 6. 4. Custom lighting features as allowed by the local enforcing agency, as permitted by Section 101.8 Alternate materials, designs and methods of construction. 16.14.300 Section 5.305.1.3 Dual Plumbing. Section 5.305.1.3 Dual plumbing is added as mandatory and is amended to read: 17 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle 5.305.1.3 Dual plumbing. New buildings and facilities shall be dual plumbed for potable and recycled water systems for toilet flushing when recycled water is available. All building projects for which CPAU recycled water service is available must install dual Plumbing and use recycled water for toilet and urinal flushing when the building area is greater than 10,000 square feet or where installation of 25 or more toilets and urinals is proposed. All projects for which CPAU recycled water service is not yet available must install dual plumbing for use of recycled water for toilet and urinal flushing when the building area exceeds 50,000 square feet or where installation of 50 or more toilets and urinals is proposed. 16.14.310 Reserved. 16.14.320 Reserved. 16.14.330 Reserved. 16.14.340 Reserved. 16.14.350 Reserved. 16.14.360 Section 5.304.2 Invasive species prohibited. Section 5.304.2 is added as mandatory to read: 5.304.2 Invasive species prohibited. All non-residential new construction, additions, and alterations shall not install invasive species in a landscape area of any size. 16.14.365 Section 5.306 Non-residential enhanced water budget. Section 5.306 Non-residential enhanced water budget is added as mandatory to read: 5.306 Non-residential enhanced water budget. Non-residential buildings anticipated to use more than 1,000 gallons of water a day shall complete an Enhanced Water Budget Calculator as established by the Chief Building Official or designee . 16.14.370 Section A5.408 Construction Waste Reduction, Disposal and Recycling. Section A5.408.3.1.1 Enhanced Construction Waste Reduction is adopted at Tier 2 (80% construction waste reduction) as a mandatory requirement for all non-residential construction, including new construction, additions, and alterations, as long as the construction has a 18 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle valuation exceeding $25,000. Non-residential projects with a lower valuation shall remain subject to California Green Building Code Chapter 5 mandatory requirements. 16.14.375 Reserved. 16.14.380 Section 5.410.4.6 Energy STAR portfolio manager. Section 5.410.4.6 Energy STAR portfolio manager is added as mandatory to read: 5.410.4.6 Energy STAR portfolio manager. All non-residential projects exceeding $100,000 valuation must provide evidence of an Energy STAR Portfolio Manager project profile for both water and energy use prior to Permit Issuance, acquire an Energy STAR Portfolio Manager Rating, and submit the rating to the City of Palo Alto once the project has been occupied after 12 months. 16.14.390 Section 5.410.4.7 Performance reviews – energy. Section 5.410.4.7 Performance reviews - energy is added to read: 5.410.4.7 Performance reviews – energy. All projects over 10,000 square feet. The City reserves the right to conduct a performance review, no more frequently than once every five years unless a project fails review, to evaluate the building's energy use to ensure that resources used at the building and/or site do not exceed the maximum allowance set forth in the rehabilitation or new construction design. Following the findings and recommendations of the review, the City may require adjustments to the energy usage or energy-using equipment or systems if the building is no longer compliant with the original design. Renovation or rehabilitation resulting from such audit activity shall be considered a project and shall be subject to applicable documentation submittal requirements of the City. This section is effective only for those projects for which a building permit was issued after January 1, 2009. 16.14.400 Section 5.410.4.8 Performance reviews – water. Section 5.410.4.8 Performance reviews - water is added to read: 5.410.4.8 Performance reviews – water. All sites greater than one acre: The City reserves the right to conduct performance reviews, no more frequently than once every five years unless a project fails review, to evaluate water use to ensure that resources used at the building and/or site do not exceed a maximum allowance set forth in the rehabilitation or new construction design. Water use reviews may be initiated by the 19 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle Building Division, or as a coordinated effort between the CPAU and the Santa Clara Valley Water District (SCVWD), or as part of SCVWD's established water conservation programs. Following the findings and recommendations of the review, the City may require adjustments to irrigation usage, irrigation hardware, and/or landscape materials to reduce consumption and improve efficiency. Renovation or rehabilitation resulting from such audit activity shall be considered a project and shall be subject to applicable documentation submittal requirements of the City. 16.14.410 Section 5.506 Indoor Air Quality. Section 5.506.3 is added as mandatory to read: Section 5.506.3 Indoor Air Quality Management Plan. All commercial and multi- family projects must submit an Indoor Air Quality Management Plan (IAQ) with building permit application in accordance with the Sheet Metal and Air Conditioning Contractors National Association (SMACNA IAQ) Guidelines for Occupied Buildings Under Construction, 2nd edition ANSI/SMACNA 008-2008. 16.14.420 Section A4.106.8 Electric Vehicle (EV) Charging. Section A4.106.8 of the California Green Building Standards Code is adopted as mandatory and amended to read: A4.106.8 Electric Vehicle (EV) Charging for Residential Structures. Newly constructed single family and multifamily residential structures, including residential structures constructed as part of a mixed-use development, shall comply with the following requirements for electric vehicle supply equipment (EVSE). All parking space calculations under this section shall be rounded up to the next full space. The requirements stated in this section are in addition to those contained in Section 4.106.4 of the California Green Building Standards Code. In the event of a conflict between this section and Section 4.106.4 of the California Green Building Standards Code, the more robust EV Charging requirements shall prevail. Definitions. For the purposes of this section, the following definitions shall apply: (a) Level 2 EVSE. “Level 2 EVSE” shall mean an EVSE capable of charging at 30 amperes or higher at 208 or 240 VAC. An EVSE capable of simultaneously charging at 30 amperes for each of two vehicles shall be counted as two Level 2 EVSE. 20 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle (b) Conduit Only. “Conduit Only” shall mean, at minimum: (1) a panel capable to accommodate a dedicated branch circuit and service capacity to install a 208/240V, 50 amperes grounded AC outlet; and (2) raceway or wiring with capacity to accommodate a 100 ampere circuit; terminating in (3) a listed cabinet, box, enclosure, or NEMA receptacle. The raceway shall be installed so that minimal removal of materials is necessary to complete the final installation. (c) EVSE-Ready Outlet. “EVSE-Ready Outlet” shall mean, at minimum: (1) a panel capable to accommodate a dedicated branch circuit and service capacity to install a 208/240V, 50 amperes grounded AC outlet; (2) a two-pole circuit breaker; (3) raceway with capacity to accommodate 100-ampere circuit; (4) 50 ampere wiring; terminating in (5) a 50 ampere NEMA receptacle in a covered outlet box. (d) EVSE Installed. “EVSE Installed” shall mean an installed Level 2 EVSE. A4.106.8.1 New one-family, two-family and townhouse dwellings. The following standards apply to newly constructed detached and attached single family, two-family and townhouse residences. (a) In general. The property owner shall provide Conduit Only, EVSE-Ready Outlet, or EVSE Installed for each residence. (b) Location. The proposed location of a charging station may be internal or external to the dwelling and shall be in close proximity to an on-site parking space consistent with City guidelines, rules, and regulations. A4.106.8.2 New Multi-Family Dwellings. The following standards apply to newly constructed residences in a multi-family residential structure, except as provided in section A4.106.8.2.1. (a) Resident parking. The property owner shall provide at least one EVSE-Ready Outlet or EVSE Installed for each residential unit in the structure. (b) Guest parking. The property owner shall provide Conduit Only, EVSE-Ready Outlet, or EVSE Installed, for at least 25% of guest parking spaces, among which at least 5% (and no fewer than one) shall be EVSE Installed. (c) Accessible spaces. Projects shall comply with the 2019 California Building Code requirements for accessible electric vehicle parking. 21 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle (d) Minimum total circuit capacity. The property owner shall ensure sufficient circuit capacity, as determined by the Chief Building Official or designee , to support a Level 2 EVSE in every location where Circuit Only, EVSE-Ready Outlet or EVSE Installed is required. (e) Location. The EVSE, receptacles, and/or raceway required by this section shall be placed in locations allowing convenient installation of and access to EVSE. In addition, if parking is deed-restricted to individual residential units, the EVSE or receptacles required by subsection (a) shall be located such that each unit has access to its own EVSE or receptacle. Location of EVSE or receptacles shall be consistent with all City guidelines, rules, and regulations. A4.106.8.2.2 Exception – Multi-Family Residential Structures with Individual, Attached Parking. The property owner shall provide Conduit Only, EVSE-Ready Outlet, or EVSE Installed for each newly constructed residence in a multi-family residential structure featuring: (1) a parking space attached to the residence; and (2) a shared electrical panel between the residence and parking space (e.g., a multi-family structure with tuck-under garages). A4.106.8.3 New Hotels. The following standards apply to newly constructed hotels. (a) In general. The property owner shall provide Conduit Only, EVSE-Ready Outlet, or EVSE Installed for at least 30% of parking spaces, among which at least 10% (and no fewer than one) shall be EVSE Installed. (b) Accessible spaces. Projects shall comply with the 2019 California Building Code requirements for accessible electric vehicle parking. (c) Minimum total circuit capacity. The property owner shall ensure sufficient circuit capacity, as determined by the Chief Building Official or designee , to support a Level 2 EVSE in every location where Circuit Only, EVSE-Ready Outlet or EVSE Installed is required. (d) Location. The EVSE, receptacles, and/or raceway required by this section shall be placed in locations allowing convenient installation of and access to EVSE. Location of EVSE or receptacles shall be consistent with all City guidelines, rules, and regulations. 22 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle 16.14.430 Section A5.106.5.3 Electric Vehicle (EV) Charging for Non-Residential Structures. Section A5.106.5.3 of the California Green Building Standards Code is adopted as mandatory and amended to read: A5.106.5.3 Electric Vehicle (EV) Charging for Non-Residential Structures. New non- residential structures shall comply with the following requirements for electric vehicle supply equipment (EVSE). All parking space calculations under this section shall be rounded up to the next full space. The requirements stated in this section are in addition to those contained in Section 5.106.5.3 of the California Green Building Standards Code. In the event of a conflict between this section and Section 5.106.5.3, the more robust EV Charging requirements shall prevail. Definitions. For the purposes of this section, the following definitions shall apply: (a) Level 2 EVSE. “Level 2 EVSE” shall mean an EVSE capable of charging at 30 amperes or higher at 208 or 240 VAC. An EVSE capable of simultaneously charging at 30 amperes for each of two vehicles shall be counted as two Level 2 EVSE. (b) Conduit Only. “Conduit Only” shall mean, at minimum: (1) a panel capable to accommodate a dedicated branch circuit and service capacity to install at least a 208/240V, 50 amperes grounded AC outlet; and (2) raceway or wiring with capacity to accommodate a 100 ampere circuit; terminating in (3) a listed cabinet, box, enclosure, or NEMA receptacle. The raceway shall be installed so that minimal removal of materials is necessary to complete the final installation. (c) EVSE-Ready Outlet. “EVSE-Ready Outlet” shall mean, at minimum: (1) a panel capable to accommodate a dedicated branch circuit and service capacity to install at least a 208/240V, 50 amperes grounded AC outlet; (2) a two-pole circuit breaker; (3) raceway with capacity to accommodate a 100-ampere circuit; (4) 50 ampere wiring; terminating in (5) a 50 ampere NEMA receptacle in a covered outlet box. (d) EVSE Installed. “EVSE Installed” shall mean an installed Level 2 EVSE. A5.106.5.3.5 Non-Residential Structures Other than Hotels. The following standards apply to newly constructed non-residential structures other than hotels. 23 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle (a) In general. The property owner shall provide Conduit Only, EVSE-Ready Outlet, or EVSE Installed for at least 25% of parking spaces, among which at least 5% (and no fewer than one) shall be EVSE Installed. (b) Accessible spaces. Projects shall comply with the 2019 California Building Code requirements for accessible electric vehicle parking. (c) Minimum total circuit capacity. The property owner shall ensure sufficient circuit capacity, as determined by the Chief Building Official or designee , to support a Level 2 EVSE in every location where Circuit Only, EVSE-Ready Outlet or EVSE Installed is required. (d) Location. The EVSE, receptacles, and/or raceway required by this section shall be placed in locations allowing convenient installation of and access to EVSE. Location of EVSE or receptacles shall be consistent with all City guidelines, rules, and regulations. SECTION 2. The Council adopts the findings for local amendments to the California Green Building Standards Code, 2019 Edition, attached hereto as Exhibit “A” and incorporated herein by reference. SECTION 3. Section 16.12.035 of Chapter 16.12 of Title 16 of the Palo Alto Municipal Code is hereby amended to read as follows: 16.12.035 New construction; recycled water use for toilet and urinal flushing and floor trap priming. (a) All applications for building permits for new or remodeled buildings or groups of buildings within the boundaries of a recycled water project area, filed after the adoption of this chapter, where the building square footage total, including both the original square footage and any addition, is greater than 10,000 square feet or where installation of twenty-five or more toilets and urinals is proposed, shall incorporate dual plumbing in the design of the facility to allow the use of recycled water, when it becomes available, for flushing toilets and urinals and priming floor traps. Dual plumbing requirements shall not apply to single family homes. (b) All applications for building permits for new or remodeled buildings or groups of buildings in geographic areas not within the boundaries of a recycled water project area, filed after the adoption of this chapter, where the building square footage total, including both the original square footage and any addition, is greater than 50,000 100,000 square feet or where installation of 50 100 or more toilets and urinals is proposed, shall incorporate dual plumbing in the design of the facility to allow the use of 24 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle recycled water, when it becomes available, for flushing toilets and urinals and priming floor traps. Dual plumbing requirements shall not apply to single family homes. (c) When dual plumbing requirements are triggered by remodeling, only those restroom facilities located within the remodel project area shall be required to incorporate dual plumbing. SECTION 4. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. SECTION 5. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the amendments herein adopted will have a significant effect on the environment. // // // // // // // // // // // // // // 25 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle SECTION 6. This Ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: November 4, 2019 PASSED: November 18, 2019 AYES: CORMACK, DUBOIS, FILSETH, KNISS, KOU, TANAKA NOES: ABSENT: FINE ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Deputy City Attorney City Manager Director of Planning and Development Services Director of Administrative Services 23 2019102205 ORD Amending Ch. 16.14 Green Building Code – 2019 Code Cycle Exhibit A FINDINGS FOR LOCAL AMENDMENTS TO CALIFORNIA GREEN BUILDING STANDARD CODE, 2019 EDITION Section 17958 of the California Health and Safety Code provides that the City may make changes to the provisions in the uniform codes that are published in the California Building Standards Code. Sections 17958.5 and 17958.7 of the Health and Safety Code require that for each proposed local change to those provisions in the uniform codes and published in the California Building Standards Code which regulate buildings used for human habitation, the City Council must make findings supporting its determination that each such local change is reasonably necessary because of local climatic, geological, or topographical conditions. Local building regulations having the effect of amending the uniform codes, which were adopted by the City prior to November 23, 1970, were unaffected by the regulations of Sections 17958, 17958.5 and 17958.7 of the Health and Safety Code. Therefore, amendments to the uniform codes which were adopted by the City Council prior to November 23, 1970 and have been carried through from year to year without significant change, need no required findings. Also, amendments to provisions not regulating buildings used for human habitation, including amendments made only for administrative consistency, do not require findings. Code: Cal Green Section Title Add Deleted Amended Justification (See below for keys) 301 Voluntary tiers added C & E 301.1.3 Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) C & E 303.1.2 Cumulative Construction C & E 4.105 Deconstruction Survey C & E 4.304 Outdoor Water Use C A4.106.5 Cool roof for reduction of heat island effect C A4.405.3.1 Recycled content E 5.105.1 Salvage E 5.106.1.1 Local ordinance C 5.106.8 Light pollution reduction E 5.303.5 Dual Plumbing C 5.304.5 Potable Water Elimination C 5.304.6 Invasive Species E 5.305.1 Non-residential enhanced water budget C 5.410.4.6 Energy STAR portfolio manager C & E 5.410.4.7 Performance reviews – energy C & E 5.410.4.8 Performance reviews – water C & E 5.506.3 Indoor Air Quality Management Plan C & E 702.2 Special Inspection E Appendix A4 Residential Voluntary Measures C & E Appendix A5 Non-Residential Voluntary Measures C & E Key to Justification for Amendments to Title 24 of the California Code of Regulations C This amendment is justified on the basis of a local climatic condition. The seasonal climatic conditions during the late summer and fall create severe fire hazards to the public health and welfare in the City. The hot, dry weather frequently results in wild land fires on the brush covered slopes west of Interstate 280. The aforementioned conditions combined with the geological characteristics of the hills within the City create hazardous conditions for which departure from California Building Standards Code is required. Failure to address and significantly reduce greenhouse gas (GHG) emissions could result in rises in sea level, including in San Francisco Bay, that could put at risk Palo Alto homes and businesses, public facilities, and Highway 101 (Bayshore Freeway), particularly the mapped Flood Hazard areas of the City. Energy efficiency is a key component in reducing GHG emissions, and construction of more energy efficient buildings can help Palo Alto reduce its share of the GHG emissions that contribute to climate change. The burning of fossil fuels used in the generation of electric power and heating of buildings contributes to climate change, which could result in rises in sea level, including in San Francisco Bay, that could put at risk Palo Alto homes and businesses 1 public facilities, and Highway 101. Due to decrease in annual rain fall, Palo Alto experiences the effect of drought and water saving more than some other communities in California. E Green building enhances the public health and welfare by promoting the environmental and economic health of the City through the design, construction, maintenance, operation and deconstruction of buildings and sites by incorporating green practices into all development. The green provisions in this Chapter are designed to achieve the following goals: (a) Increase energy efficiency in buildings; (b) Increase water and resource conservation; (c) Reduce waste generated by construction and demolition projects; (d) Provide durable buildings that are efficient and economical to own and operate; ( e) Promote the health and productivity of residents, workers, and visitors to the city; (f) Recognize and conserve the energy embodied in existing buildings; (g) Encourage alternative transportation; and (h) Reduce disturbance of natural ecosystems. G This amendment is justified on the basis of a local geological condition. The City of Palo Alto is subject to earthquake hazard caused by its proximity to San Andreas fault. This fault runs from Hollister, through the Santa Cruz Mountains, epicenter of the 1989 Loma Prieta earthquake, then on up the San Francisco Peninsula, then offshore at Daly City near Mussel Rock. This is the approximate location of the epicenter of the 1906 San Francisco earthquake. The other fault is Hayward Fault. This fault is about 74 mi long, situated mainly along the western base of the hills on the east side of San Francisco Bay. Both of these faults are considered major Northern California earthquake faults which may experience rupture at any time. Thus, because the City is within a seismic area which includes these earthquake faults, the modifications and changes cited herein are designed to better limit property damage as a result of seismic activity and to establish criteria for repair of damaged properties following a local emergency. T The City of Palo Alto topography includes hillsides with narrow and winding access, which makes timely response by fire suppression vehicles difficult. Palo Alto is contiguous with the San Francisco Bay, resulting in a natural receptor for storm and waste water run-off. Also, the City of Palo Alto is located in an area that is potentially susceptible to liquefaction during a major earthquake. The surface condition consists mostly of stiff to dense sandy clay, which is highly plastic and expansive in nature. The aforementioned conditions within the City create hazardous conditions for which departure from California Building Standards Code is warranted. 1 of 1 TO: HONORABLE CITY COUNCIL FROM: JONATHAN LAIT, DIRECTOR DATE: OCTOBER 5, 2020 SUBJECT: AGENDA ITEM 8 - ADOPTION OF SEVERAL ORDINANCES REGARDING ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS AMENDING PALO ALTO MUNICIPAL CODE TITLES 16 (BUILDING) AND 18 (ZONING); AMENDMENTS INCLUDE REPEALING SECTION 18.42.040 (ACCESSORY AND JUNIOR ACCESSORY DWELLING UNITS) AND ADDING A NEW CHAPTER 18.09 (ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS); AND UPDATING CHAPTERS 18.04 (DEFINITIONS), 16.58 (DEVELOPMENT IMPACT FEES), 16.04 (CALIFORNIA BUILDING CODE), 16.06 (CALIFORNIA RESIDENTIAL CODE), AND 16.14 (CALIFORNIA GREEN BUILDING STANDARDS CODE). ENVIRONMENTAL ASSESSMENT: EXEMPT FROM REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO PUBLIC RESOURCES CODE SECTION 21080.17 AND CEQA GUIDELINES SECTIONS 15061(B)(3), 15282(H), 15301, 15302 AND 15305 (CONTINUED FROM AUGUST 17, 2020) The attached document is an annotated ordinance intended to serve as a crosswalk between the new proposed language and the municipal code’s existing language and code sections. There is no change to any of the regulatory language between this document and the ordinance included in the Council’s packet. This ordinance is for reference only. The ordinance included in the packet completely reorganizes the City’s ADU regulations into a new chapter, clarifies existing language and introduces new policies. The attached annotated ordinance directs the reader to the current corresponding section in the municipal code for those interested in comparing the proposal to existing code. _______________________ _________________________ Jonathan Lait Ed Shikada Director of Planning & Development Services City Manager 8 DocuSign Envelope ID: FF1EC96B-175F-431B-A75F-7413ADB87BCF 1 ORD 2020-07-02 ADU Revamp Ordinance No. Ordinance of the Council of the City of Palo Alto Amending Title 18 (Zoning) of the Palo Alto Municipal Code to Amend Requirements Relating to Accessory Dwelling Units and Junior Accessory Dwelling Units The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A. Housing in California is increasingly unaffordable. In 2017, the average California home cost about 2.5 times the national average home price and the monthly rent was 50% higher than the rest of the nation. Rents in San Francisco, San Jose, Oakland, and Los Angeles are among the top 10 most unaffordable in the nation. B. Housing in Palo Alto is especially unaffordable. The average Palo Alto home currently costs about 8 times the national average home price and the monthly rent is about 2.5 times the national average. C. Palo Alto has a jobs/housing imbalance. When addressing this imbalance, the City must not only provide housing but also ensure affordability. D. Assembly Bills (“ABs”) 68, 587, 671, and 881 and Senate Bill (“SB”) 13 (“State ADU Law”) pertain to accessory dwelling units (“ADUs”) and junior accessory dwelling units (“JADUs”) and were approved by the California Legislature on September 13, 2019 and signed by the Governor on October 9, 2019. These bills, codified primarily in California Government Code sections 65952.2 and 65952.22, are intended to spur the creation of lower cost housing by easing regulatory barriers to the creation of ADUs and JADUs. E. This ordinance is adopted to comply with the mandates of the State ADU Law. SECTION 2. Section 18.42.040 (Accessory and Junior Accessory Dwelling Units) of Chapter 18.42 (Standards for Special Uses) of Title 18 (Zoning) of the Palo Alto Municipal Code (“PAMC”) is deleted in its entirety. SECTION 3. Chapter 18.09 (Accessory Dwelling Units and Junior Accessory Dwelling Units) of Title 18 (Zoning) of the Palo Alto Municipal Code (“PAMC”) is added to read: 18.09.010 Purpose /* This section is taken from current 18.42.040(a)(1) */ The intent of this Chapter is to provide regulations to accommodate accessory and junior accessory dwelling units (ADU/JADU), in order to provide for variety to the city's housing stock and additional affordable housing opportunities. These units shall be separate, self-contained living units, with separate entrances from the main residence, whether attached or detached. The standards below are provided to minimize the impacts of units on nearby residents and throughout the city, and to assure that the size and location of such dwellings is compatible with the existing or proposed residence(s) on the site and with other structures in the area. DocuSign Envelope ID: FF1EC96B-175F-431B-A75F-7413ADB87BCF 2 ORD 2020-07-02 ADU Revamp 18.09.020 Applicable Zoning Districts /* This section is taken from current 18.42.040(a)(2) */ The establishment of an accessory dwelling unit is permitted in zoning districts when single- family or multi-family residential is a permitted land use. 18.09.030 Units Exempt from Generally Applicable Local Regulations /* This section is a restatement and clarification of current 18.42.040(a)(5). The proposed paragraph below introduces the concept of Gov. Code section 65852.2(e) and summarizes the types of ADUs entitled to special treatment under that subsection of the state law. */ (a) Government Code section 65852.2, subdivision (e) provides that certain units shall be approved notwithstanding state or local regulations that may otherwise apply. The following types of units shall be governed by the standards in this section. In the event of a conflict between this section and Government Code section 65852.2, subdivision (e), the Government Code shall prevail. i. An ADU or JADU within the existing space of a single-family dwelling or an ADU within the existing space of an accessory structure (i.e. conversion without substantial addition). ii. An ADU or JADU within the proposed space of a single-family dwelling. iii. A detached, new construction ADU on a lot with a proposed or existing single-family dwelling, provided the ADU does not exceed 800 square feet, sixteen feet in height, or four-foot side and rear (i.e. interior) setbacks. iv. ADUs created by conversion of portions of existing multi-family dwellings not used as livable space. v. Up to two detached ADUs on a lot with an existing multi-family dwelling. (b) The Development Standards for units governed by this section are summarized in Table 1. /* The following table summarizes the criteria that must be met to qualify for special treatment under Gov. Code section 65852.2(e). These criteria are currently provided in a narrative format in 18.42.040(a)(5). The proposed table also includes some provisions that go beyond the strict requirements of state law – e.g. allowing an attached ADU to be built in conjunction with a JADU. Finally, two of the footnotes clarify the application of local law to these ADUs (loft space counting as floor area and the inapplicability of local flood zone height bonus). */ DocuSign Envelope ID: FF1EC96B-175F-431B-A75F-7413ADB87BCF 3 ORD 2020-07-02 ADU Revamp Table 1: Development Standards for Units Described in Government Code Section 65852.2(e) Single-Family Multi-Family Conversion of Space Within an Existing Single-Family Home or Accessory Structure Construction of Attached ADU Within the Space of a Proposed Single-Family Home New Construction of Detached ADU Conversion of Non-Habitable Space Within Existing Multi-family Dwelling Structure Conversion or Construction of Detached ADU Number of Units Allowed1 1 (ADU or JADU) 1 25% of the existing units (at least one) 2 Minimum size2 150 sf Maximum size2 N/A3 800 sf N/A Setbacks N/A, if condition is sufficient for fire and safety Underlying zone standard for Single Family Home (ADU must be within space of Single-Family Home) 4 feet from side and rear lot lines; underlying zoning for front setback N/A 4 feet from side and rear lot lines; underlying zoning for front setback Daylight Plane N/A N/A Maximum Height N/A 164 N/A 164 Parking None State Law Reference 65852.2(e)(1)(A) 65852.2(e)(1)(A) 65852.2(e)(1)(B) 65852.2(e)(1)(C) 65852.2(e)(1)(D) (1) An attached or detached ADU may be built in conjunction with a JADU on a lot with an existing or proposed single family home. (2) Lofts where the height from the floor level to the underside of the rafter or finished roof surface is 5' or greater shall count towards the unit’s floor area. (3) Up to 150 sf may be added for the purpose of ingress and egress only. (4) Units built in a flood zone are not entitled to any height extensions granted to the primary dwelling. (c) Development standards stated elsewhere in this Section or Title 18, including standards related to FAR, lot coverage, and privacy, are not applicable to ADUs or JADUs that qualify for approval under this section. /* The following subsections (d) through (k) state additional requirements for ADUs entitled to special treatment under Gov. Code 65852.2(e), all of which are currently stated in 18.42.040. Under the current ordinance, readers are directed to look variously to 18.42.040(a)(5), (a)(6), (a)(9), and (a)(10) to find all applicable requirements. The proposed ordinance condenses these requirements and allows readers to simply look in one place. */ (d) The establishment of accessory dwelling units and junior accessory dwelling units pursuant to this section shall not be conditioned on the correction of non-conforming zoning conditions; provided, however, that nothing in this section shall limit the authority of the Chief Building Official to require correction of building standards relating to health and safety. (e) The installation of fire sprinklers shall not be required in an accessory dwelling unit if sprinklers are not required for the primary residence. Nothing in this section shall preclude the Fire Marshal from accepting fire sprinklers as an alternative means of compliance with generally applicable fire protection requirements. (f) Rental of any unit created pursuant to this section shall be for a term of 30 days or more. DocuSign Envelope ID: FF1EC96B-175F-431B-A75F-7413ADB87BCF 4 ORD 2020-07-02 ADU Revamp (g) Attached units shall have independent exterior access from a proposed or existing single-family dwelling. Except for JADUs, attached units shall not have an interior access point to the primary dwelling (e.g. hotel door or other similar feature/appurtenance). (h) Conversion of an existing accessory structure pursuant to Government Code section 65852.2(e)(1)(A) may include reconstruction in-place of a non-conforming structure, so long as the renovation of reconstruction does not increase the degree of non-compliance, such as increased height, envelope, or further intrusion into required setbacks. (i) Street addresses shall be assigned to all units prior to building permit final to assist in emergency response. (j) The unit shall not be sold separately from the primary residence. (k) JADUs shall comply with the requirements of Section 18.09.050. 18.09.040 Units Subject to Local Standards /* This section collects ADU regulations that are currently spread across 18.42.040(a)(3), a(4), a(6), a(7), a(8), a(9), and a(10). Rather than having separate sections for Attached ADUs and Detached ADUs as well as a section with regulations pertaining to all ADUs, the proposed ordinance summarizes the regulations in a table with additional narrative requirements, similar to the treatment of development standards in other sections of the zoning code. Except as noted in the staff report, these regulations can all be found in current section 18.42.040. */ (a) This section shall govern applications for ADUs and JADUs that do not qualify for approval under section 18.09.030 and for which the City may impose local standards pursuant to Government Code section 65852.2, subdivisions (a) through (d). (b) The Development Standards for units governed by this section are provided in Table 2. Table 2: All other Units Attached Detached JADU Number of Units Allowed1 1 1 Minimum size 150 sf Maximum size 900 sf (1,000 sf for two or more bedrooms); no more than 50% of the size of the single-family home 900 sf (1,000 sf for two or more bedrooms) 500 sf Setbacks 4 feet from side and rear lot lines; underlying zone standard for front setback Daylight Plane Initial Height 8 feet at lot line Angle 45 degrees Maximum Height3 Res. Estate (RE) 30 feet Open Space (OS) 25 feet All other eligible zones 16 feet Parking None Square Footage Up to 800 sf(4) Up to 500 sf(4) DocuSign Envelope ID: FF1EC96B-175F-431B-A75F-7413ADB87BCF 5 ORD 2020-07-02 ADU Revamp Exemption (1) An attached or detached ADU may be built in conjunction with a JADU on a lot with an existing or proposed single family home (2) Lofts where the height from the floor level to the underside of the rafter or finished roof surface is 5' or greater shall count towards the unit’s floor area. (3) Units built in a flood zone are not entitled to any height extensions granted to the primary dwelling. (4) Lots with both an ADU and a JADU may exempt a maximum combined total of 800 square feet of the ADU and JADU from FAR, Lot Coverage, and Maximum House Size calculations. (c) A single-family dwelling shall exist on the lot or shall be constructed on the lot in conjunction with the construction of an ADU/JADU. (d) ADU and/or JADU square footage shall not be included in FAR, Lot Coverage, and Maximum House Size calculations for a lot with an existing or proposed single family home, up to the amounts stated in Table 2. ADU and/or JADU square footage in excess of the exemptions provided in Table 2 shall be included in FAR, Lot Coverage, and Maximum House Size calculations for the lot. (e) Attached units shall have independent exterior access from a proposed or existing single-family dwelling. Except for JADUs, attached units shall not have an interior access point to the primary dwelling (e.g. hotel door or other similar feature/appurtenance). (f) No protected tree shall be removed for the purpose of establishing an accessory dwelling unit unless the tree is dead, dangerous or constitutes a nuisance under Section 8.04.050. Any protected tree removed pursuant to this subsection shall be replaced in accordance with the standards in the Tree Technical Manual. (g) For properties listed in the Palo Alto Historic Inventory, the California Register of Historical Resources, the National Register of Historic Places, or considered a historic resource after completion of a historic resource evaluation, compliance with the appropriate Secretary of Interior’s Standards for the Treatment of Historic Properties shall be required. (h) Noise-producing equipment such as air conditioners, water heaters, and similar service equipment, shall be located outside of the setbacks for the ADU/JADU. All such equipment shall be insulated and housed, except that the planning director may permit installation without housing and insulation, provided that a combination of technical noise specifications, location of equipment, and/or other screening or buffering will assure compliance with the city’s Noise Ordinance at the nearest property line. All service equipment must meet the city’s Noise Ordinance in Chapter 9.10 of the Municipal Code. (i) Setbacks i. Detached units shall maintain a minimum three-foot distance from the primary unit, measured from the exterior walls of structures. ii. No basement or other subterranean portion of an ADU/JADU shall encroach into a setback required for the primary dwelling. iii. Projections, including but not limited to windows, doors, mechanical equipment, venting or exhaust systems, are not permitted to encroach into the required setbacks, with the exception of a roof eave of up to 2 feet. (j) Design i. Except on corner lots, the unit shall not have an entranceway facing the same lot line (property line) as the entranceway to the main dwelling unit unless the DocuSign Envelope ID: FF1EC96B-175F-431B-A75F-7413ADB87BCF 6 ORD 2020-07-02 ADU Revamp entranceway to the accessory unit is located in the rear half of the lot. Exterior staircases to second floor units shall be located toward the interior side or rear yard of the property. ii. Privacy A. Second story doors and decks shall not face a neighboring dwelling unit. Second story decks and balconies shall utilize screening barriers to prevent views into adjacent properties. These barriers shall provide a minimum five-foot, six-inch, screen wall from the floor level of the deck or balcony and shall not include perforations that would allow visibility between properties. B. Second story windows, excluding those required for egress, shall have a five-foot sill height as measured from the second-floor level, or utilize obscured glazing on the entirety of the window when facing adjacent properties. Second story egress windows shall utilize obscured glazing on the entirety of the windows which face adjacent properties. C. Second story windows shall be offset from neighbor’s windows to maximize privacy. (k) Parking i. Replacement parking is not required when a garage, carport, or covered parking structure is converted to, or demolished in conjunction with the construction of, an ADU. ii. Replacement parking is required when an existing attached garage is converted to a JADU. These replacement spaces may be provided as uncovered spaces in any configuration on the lot including within the front or street side yard setback for the property. A. The Director shall have the authority to modify required replacement parking spaces by up to one foot in width and length upon finding that the reduction is necessary to accommodate parking in a location otherwise allowed under this code and is not detrimental to public health, safety or the general welfare. B. Existing front and street side yard driveways may be enlarged to the minimum extent necessary to comply with the replacement parking requirement above. Existing curb cuts shall not be altered except when necessary to promote public health, safety or the general welfare. iii. When parking is provided, the unit shall have street access from a driveway in common with the main residence in order to prevent new curb cuts, excessive paving, and elimination of street trees, unless separate driveway access will result in fewer environmental impacts such as paving, grading or tree removal. iv. If covered parking for a unit is provided in any district, the maximum size of the covered parking area for the accessory dwelling unit is 220 square feet. This space shall count towards the total floor area for the site but does not contribute to the maximum size of the unit unless attached to the unit. (l) Miscellaneous requirements i. Street addresses shall be assigned to all units prior to building permit final to assist in emergency response. DocuSign Envelope ID: FF1EC96B-175F-431B-A75F-7413ADB87BCF 7 ORD 2020-07-02 ADU Revamp ii. The unit shall not be sold separately from the primary residence. iii. Rental of any unit created pursuant to this section shall be for a term of 30 days or more. iv. The installation of fire sprinklers shall not be required in an accessory dwelling unit if sprinklers are not required for the primary residence. Nothing in this section shall preclude the Fire Marshal from accepting fire sprinklers as an alternative means of compliance with generally applicable fire protection requirements. 18.09.050 Additional Requirements for JADUs /* This section restates and clarifies the provisions of current 18.42.040(b). */ (a) A junior accessory dwelling unit shall be created within the walls of an existing or proposed primary dwelling. (b) The junior accessory dwelling unit shall include an efficiency kitchen, requiring the following components: A cooking facility with appliances, and; food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit. i. A cooking facility with appliances shall mean, at minimum a one burner installed range, an oven or convection microwave, a 10 cubic foot refrigerator and freezer combination unit, and a sink that facilitates hot and cold water. ii. A food preparation counter and storage cabinets shall be of reasonable size in relation to a JADU if they provide counter space equal to a minimum 24-inch depth and 36- inch length. (c) For the purposes of any fire or life protection ordinance or regulation or for the purposes of providing service for water, sewer, or power, a junior accessory dwelling unit shall not be considered a separate or new unit. (d) The owner of a parcel proposed for a junior accessory dwelling unit shall occupy as a primary residence either the primary dwelling or the junior accessory dwelling. Owner-occupancy is not required if the owner is a governmental agency, land trust, or housing organization. (e) Prior to the issuance of a building permit for a junior accessory dwelling unit, the owner shall record a deed restriction in a form approved by the city that includes a prohibition on the sale of the junior accessory dwelling unit separate from the sale of the single-family residence, requires owner-occupancy consistent with subsection (m)(iv) above, does not permit short- DocuSign Envelope ID: FF1EC96B-175F-431B-A75F-7413ADB87BCF 8 ORD 2020-07-02 ADU Revamp term rentals, and restricts the size and attributes of the junior dwelling unit to those that conform with this section. SECTION 4. Subsection (g) of Section 16.58.030 of Chapter 16.58 (Development Impact Fees) of Title 16 (Building) of the Palo Alto Municipal Code (“PAMC”) is amended to read: (g) Accessory dwelling units (ADU) less than 750 square feet in size. Any impact fees to be charged for an accessory dwelling unit of 750 square feet or more shall be proportional to the square footage of the primary dwelling unit established by the conversion of an existing garage or carport, provided that the existing garage or carport was legally constructed, or received building permits, as of January 1, 2017, and is converted to an ADU with no expansion of the existing building envelope; SECTION 5. Subsections (a)(4) and (a)(75) of Section 18.04.030 (Definitions) of Chapter 18.04 (Definitions) of Title 18 (Zoning) of the Palo Alto Municipal Code (“PAMC”) is amended to read: [. . .] (4) “Accessory dwelling unit” means an attached or a detached residential dwelling unit which provides complete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single- family dwelling is situated. An accessory dwelling unit also includes the following: (A) An efficiency unit, as defined in Section 17958.1 of the Health and Safety Code. (B) A manufactured home, as defined in Section 18007 of the Health and Safety Code. In some instances this Code uses the term second dwelling unit interchangeably with accessory dwelling unit. For the purposes of this definition, in order to provide “complete independent living facilities,” a dwelling unit shall not have an interior access point to another dwelling unit (e.g. hotel door or other similar feature/appurtenance). [. . .] (75) “Kitchen” means a room designed, intended or used for cooking and the preparation of food and dishwashing. Kitchen facilities include the presence of major appliances, utility connections, sink, counter, for storing, preparing, cooking, and cleaning. (A) For ADUs, major appliances shall mean a minimum two burner installed range, and an oven or convection microwave, as well as a minimum 16 cubic foot freezer and refrigerator combination unit. Kitchens shall also include counter space for food preparation equal to a minimum 24-inch depth and 36-inch length, and a sink that facilitates hot and cold water. [. . .] SECTION 6. Any provision of the Palo Alto Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. DocuSign Envelope ID: FF1EC96B-175F-431B-A75F-7413ADB87BCF 9 ORD 2020-07-02 ADU Revamp SECTION 7. 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 8. The Council finds that the adoption of this Ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.17 and CEQA Guidelines sections 15061(b)(3), 15301, 15302 and 15305 because it constitutes minor adjustments to the City’s zoning ordinance to implement State law requirements related to accessory dwelling units as established in Government Code Section 65852.2, and these changes are also likely to result in few additional dwelling units dispersed throughout the City. As such, it can be seen with certainty that the proposed action will not have the potential for causing a significant effect on the environment. SECTION 9. This ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: NOT PARTICIPATING: ATTEST: __________________________________ __________________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________________ __________________________________ Assistant City Attorney City Manager __________________________________ Director of Planning & Development Services DocuSign Envelope ID: FF1EC96B-175F-431B-A75F-7413ADB87BCF Certificate Of Completion Envelope Id: FF1EC96B175F431BA75F7413ADB87BCF Status: Completed Subject: Please DocuSign: PDS At Places Memo Council Oct 5 Agenda Item No 8 Source Envelope: Document Pages: 10 Signatures: 2 Envelope Originator: Certificate Pages: 2 Initials: 0 Madina Klicheva AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Madina.Klicheva@CityofPaloAlto.org IP Address: 172.58.92.251 Record Tracking Status: Original 10/1/2020 9:23:51 AM Holder: Madina Klicheva Madina.Klicheva@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 Jonathan Lait Jonathan.Lait@CityofPaloAlto.org Interim Director Planning and Community Environment City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Uploaded Signature Image Using IP Address: 99.88.42.180 Sent: 10/1/2020 9:25:47 AM Viewed: 10/1/2020 10:09:09 AM Signed: 10/1/2020 10:09:14 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign 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: 10/1/2020 10:09:17 AM Viewed: 10/1/2020 10:57:19 AM Signed: 10/1/2020 11:01:28 AM 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 Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 10/1/2020 10:09:17 AM Envelope Summary Events Status Timestamps Certified Delivered Security Checked 10/1/2020 10:57:20 AM Signing Complete Security Checked 10/1/2020 11:01:28 AM Completed Security Checked 10/1/2020 11:01:28 AM Payment Events Status Timestamps City of Palo Alto (ID # 11621) City Council Staff Report Report Type: Action Items Meeting Date: 10/5/2020 City of Palo Alto Page 1 Council Priority: Transportation and Traffic Summary Title: Continue Old Palo Alto RPP Pilot Program Title: Approval of an Extension of the Pilot Phase of the Old Palo Alto Residential Preferential Parking Program for a Period of Twelve Months (Continued From September 14, 2020) From: City Manager Lead Department: Transportation Department Recommendation Staff recommends that the City Council extend the pilot phase of the Old Palo Alto Residential Preferential Parking (RPP) Program for twelve months ending on October 31, 2021. Executive Summary The residential preferential parking (RPP) program in the Old Palo Alto neighborhood is approaching the end of its designated “pilot” phase, designed to limit overflow parking to the neighborhood’s residential streets. While the new program has been largely successful by reducing the impact from non-resident parkers, at least anecdotally, staff recommends extending the Old Palo Alto RPP pilot for an additional twelve months to further evaluate the program, as the economic downturn related to COVID-19 has significantly impacted travel patterns. The additional review and evaluation time will also align with other efforts in the Office of Transportation to better define and evaluate parking management measures underway in the City. Staff will return to Council in Fall of 2021 with any recommended modifications. Background The City Council established the Old Palo Alto RPP Program as a one-year pilot program in Staff Report 10613 by adoption of Resolution No. 9862 in October 2019. Permit sales for the Old Palo Alto RPP Program pilot began early November with soft enforcement (warnings with no City of Palo Alto Page 2 citations) began in November, and full enforcement rolled-out late-November 2019. While there have been minor issues, including high on-street occupancies (“bunching”) on streets near the program’s original boundaries, and complaints from visitors who desire to park near the California Avenue commercial district or Caltrain Station, residents have generally been supportive of the program implementation. In March 2020, COVID-19 was detected and found to be transmitting via community spread throughout the region. To limit the potential spread of respiratory viruses and safeguard those at highest risk of COVID-19, the Santa Clara County Public Health Officer joined by the public health officers of all of the other Bay Area counties issued an order calling for residents to stay home and shelter in place except for limited essential activities. Service changes implemented because of the order included temporarily suspending city-wide enforcement of the Residential Permit Parking program. City staff acted to promote community safety and address existing and potential impacts on City services. Discussion In January of 2020, staff received RPP program feedback and collected preliminary occupancy data. Old Palo Alto residents provided favorable responses to the RPP program, citing a reduction in neighborhood traffic, improved visibility when driving, seeing a higher number of bicyclists, improved safety for bicyclists, and parking availability in their neighborhood. Staff also received concerns about parking overflow on adjacent blocks as non-resident parkers parking beyond the district and walking to their respective destinations, either their place of employment or the Caltrain Station. The proposed Council action would establish a twelve-month extension of the Old Palo Alto RPP Program's pilot phase with no changes. Due to the lack of feasible parking data, staff cannot accurately assess the Old Palo Alto RPP program's effectiveness. The pilot extension will allow staff to consider program improvements and suggestions based on a study of the RPP program post-pandemic for a recommendation based on accurate traffic trends and parking demand. At the end of this extension period, staff will recommend a second pilot extension, dissolve the RPP district, or establish the RPP district as an ongoing program. Policy Implications The following Comprehensive Plan programs and policies are relevant to the Old Palo Alto RPP Program: Policy T-5.5 Minimize the need for employees to park in and adjacent to commercial centers, employment districts and schools City of Palo Alto Page 3 Policy T-5.11 Work to protect residential areas from parking impacts of nearby businesses and uses, recognizing that fully addressing some existing intrusions may take time. Policy B-1.2 Promote Palo Alto’s image as a business-friendly community. Assume an active role in fostering businesses, including small start-ups, entrepreneurs, and innovative businesses. Policy B-1.3 Engage with all stakeholders in the community, including businesses of all sizes, local retailers, the public, and City decision-makers in order to understand the challenges businesses and employers face. Policy B-2.3 Recognize that employers, businesses and neighborhoods share many values and concerns, including traffic and parking issues and preserving Palo Alto’s livability, and need to work together with a priority on neighborhood quality of life. Policy B-3.3 Develop strategies for promoting businesses and employers that generate revenues that will support a full range of high-quality City services, including retain and attract revenue-generating businesses. Policy B-4.2 Attract and support small businesses, start-ups, non-profit organizations, and professional services, which are vital to a diverse and innovative economy. Resource Impact No additional resource impact is expected during the pilot time extension as the continued operation of this program was included in the Adopted FY 2021 Operating Budget. Staff will continue to monitor the activity of this program and will bring forward any necessary budgetary adjustments as part of the annual budget process. Timeline Current parking permits expire on March 31, 2021 and new permits will go on sale at least 20 days in advance of that date. Environmental Review This program is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations since it can be seen with certainty that there is no possibility the extension of this existing program may have a significant effect on the environment and Section 15301 in that this proposed resolution will have a minor impact on existing facilities. City of Palo Alto (ID # 11539) City Council Staff Report Report Type: Action Items Meeting Date: 10/5/2020 City of Palo Alto Page 1 Summary Title: Percent for Public Art Ordinances Title: Review and Discuss the City of Palo Alto's Public Art Program and Direct Staff to Either Amend the Municipal Code to Temporarily Suspend the one Percent for Public art in Municipal Projects and/or Private Development Projects for two Years, or Provide Other Direction to Staff From: City Manager Lead Department: Community Services Recommendation Staff recommends the City Council review and discuss the following report on the Public Art Program and: 1. Direct staff to return to City Council with an ordinance to amend the municipal code to temporarily suspend the one percent for public art in municipal projects and/or private development projects for two years, or 2. Provide other direction to staff. Executive Summary Public art enhances the quality of life in a community, promotes cultural understanding, contributes to public health, fosters economic development and creates vital public spaces. Currently, cities such as West Hollywood, Berkeley and Santa Monica are looking to their public art programs to help their communities heal from the devastating effects of COVID-19. The City of Palo Alto’s (City) two public art ordinances allow for a very broad spectrum of temporary and permanent artworks and provides opportunities for the City, developers, and artists to create diverse and exciting art experiences for the community. The Public Art Program oversees implementation of permanent and temporary art installations throughout the City, including maintenance of the collection of more than 300 permanently sited and portable works of art and the exhibition of approximately 200 works of art throughout City facilities. To read more about the importance of public art in communities, see this 2018 report from Americans for the Arts. The Public Art Program also manages the Cubberley Artist Studio Program, which provides studio space for 23 artists and active programming directly to the community. City of Palo Alto Page 2 There are two ordinances governing the Public Art Program: an ordinance for municipal projects, (Visual Art in Public Places, Municipal Code Chapter 2.26) and an ordinance for private development projects, (Public Art for Private Developments, Municipal Code Chapter 16.61). Together, these ordinances offer parity between what we are doing as a City and what we require of private developers, ensuring that artwork is integrated into development projects throughout the City where appropriate. At the City Council budget hearing on May 26th, City Council directed staff to return to City Council this fall with a temporary suspension of the one percent for Public Art programs for two years, and reevaluate at the mid-year budget check-in. This staff report describes the rich history of the City’s Public Art Program and provides information on how the Program is implemented today. Background Public art can be found throughout the City: inside and outside public buildings, City parks, and even on private property. Art can take various forms, including sculptures, paintings and murals, environmental projects, data visualization artworks, and sculptural functional seating and historic frescoes. While the City’s collection of artwork began in 1972 and 1973 with a volunteer art panel, the City of Palo Alto officially began operating a Public Art Program in 1975 when it created the Visual Arts Jury (later renamed the Public Art Commission) and established the Art in Public Places Program. That same year, Greg Brown served as the City’s first Artist in Residence beginning his murals throughout the downtown corridor with grant support. Nude in Steel by Hans Wehrli was the first outdoor artwork acquired by the City in 1976, and it still stands outside the Rinconada Library. In the early 1980’s the City acquired several outdoor sculptures, including the Bruce Johnson’s wood sculpture in Mitchell Park that children love to explore and the red kinetic Jerome Kirk sculpture that sits adjacent to the Palo Alto Art Center. Byxbee Park opened in 1991 with major earthworks by Peter Richards and Michael Oppenheimer, and many of those features are still visible today. In the late 1990’s, the City partnered with California Avenue businesses to create the “Avenue of the Arts,” commissioning multiple murals and artworks over a period of six years. In 2005, the City passed a policy for the 1% for Art in Municipal projects, paving the way for artworks at the San Francisquito Creek Pump Station, four artworks at Mitchell Park Library and Community Center, the Palo Alto Art Center and Rinconada Library campus, and the California Avenue fountain. The Public Art Program has partnered with the Palo Alto Art Center and the Art Center Foundation to bring community favorites to life such as Patrick Dougherty’s willow sculpture on Embarcadero Road. King Plaza has been the site of ongoing temporary public art installations since 2015, drawing visitors to see artworks in a wide range of expressions and styles, from Burning Man artwork, functional sculpture, to Blue Trees and the meditative labyrinth there today. See Attachment A for images of some of the recognizable public art in Palo Alto. City of Palo Alto Page 3 In nearly 50 years, the public art collection has grown to more than 300 pieces of art valued at over $2 million. The Public Art Program has received national recognition from the Americans for the Arts for multiple projects in recent years, including Conversation by Susan Narduli at City Hall, Tabula by Charles Gadeken and D.V.Rogers on the Visa building, and three temporary installations. Discussion The Public Art Program includes oversight and management of the following major activities, which are described in detail below: 1. Public art in municipal projects 2. Temporary public art projects; housed within the Municipal Program 3. Public art in private developments and the public art in-lieu fund 4. Cubberley Artist Studios 5. Staff support of the Public Art Commission Public Art in Municipal Projects The City of Palo Alto has had a Public Art Program since 1975. In 2006, City Council adopted a Public Art Policy for art in municipal projects. In 2015, City Council further strengthened its ongoing commitment and support for the program by amending the Municipal Code to enhance funding for the Public Art Program. The 2015 ordinance increased funding commitments by mandating that one percent of the City’s annual Capital Improvement Program (CIP) budget be set aside for public art and allowed the funding to be pooled. There are many types of municipal CIP projects that are excluded from the one percent funding mandate, including: 1. ADA Compliance Projects (not including projects where ADA compliance is a portion of a larger project); 2. Road, path and sidewalk repairs, including: traffic signals and upgrades, curb and gutter repairs, sign reflectivity, road and parking sign age, resurfacing of roads or other existing hardscape areas; 3. Emergency repair projects; 4. Cyclical replacement and repair of trails, outdoor furnishings, or fencing; 5. Studies; 6. Roof replacement; 7. Mechanical, security, A/V equipment, HVAC, and IT installations, upgrades and repairs; 8. Art in Public Places CIP; 9. Utilities projects, except where the project includes construction or reconstruction of a building; 10. Vehicle repair and replacement; 11. Seismic upgrades and waterproofing; 12. Projects where the majority of the cost is allocated to elements located underground; or 13. Projects where prohibited by federal or state law, including projects or portions of projects funded by grants from non-City sources that prohibit expenditure of funds for City of Palo Alto Page 4 art. Municipal Public Art funds may be used at any appropriate site within Palo Alto for permanent or temporary public art projects. Additionally, funds from two or more CIP projects may be pooled to fund a single work of art. Public Art in Municipal Projects Budget Process and Project Timeline The one percent for art in municipal projects funding is allocated and tracked in the Art in Public Spaces capital project (AC-86017). Funds in this project are updated annually as part of the development and review of the five-year capital improvement plan to ensure the CIPs required to contribute one percent to the Art in Public Spaces project have been identified. The Art in Public Places project in the City’s Capital Improvement Fund includes both the new funds allocated as part of that budget cycle and the funds already encumbered and under contract for other projects in process as one lump sum. Due to the multi-year nature of public art, many projects are in process over several budget cycles, making the Art in Public Spaces budget appear to be much larger in recent years. The one percent allocation has been larger in recent years due to the Infrastructure Plan projects currently underway and planned for the next few years. The annual one percent allocation is projected to decrease once the Infrastructure Plan projects are complete. The Public Art Commission holds an annual retreat with staff in September to discuss which CIP projects are on the horizon that will have artwork integrated and what the two-year forecast is for new projects. This ensures that the art selection and development processes take place at the same time as the design for the building or facility is taking place. If the building is already designed and the art is added later that frequently results in costly redesign and complications to integrate any artwork into the project. As a result, the stakeholder engagement, artist selection, and design process take place prior to the fiscal year in which the construction is budgeted and the actual funds for that project are allocated to the Art in Public Spaces CIP. While the overall construction budget may increase for a project during this time, the artist is held to the budget amount in their contract. The artist fabrication and installation contract amount is based on estimates the artist secures that are typically only valid for a certain amount of time. For that reason, artists occasionally move forward with fabrication in advance of completion of the construction project to avoid any cost increases on their end. The Public Art Commission and staff use the 2016 adopted Public Art Master Plan priorities as a guide to set forth the priorities for the coming year. This Process Chart outlines the general art selection and approval process for municipal public art projects. Projects installed and commissioned with municipal CIP funds include the Go With the Flow crosswalks on Louis Road, Welcome Wagon at Fire Station 3, Birdie at the Palo Alto Municipal Golf Course, Brilliance sculptures at the Palo Alto Art Center and Rinconada Library campus, Code:ART, the temporary murals at the California Avenue Garage construction site, Confluence fountain on California Avenue, Mitchell Park Library and Community Center artworks, and the Patrick Dougherty willow sculpture commissioned in partnership with the Palo Alto Art Center City of Palo Alto Page 5 and the Art Center Foundation. Current artworks commissioned with CIP funds but not yet installed include artworks for the following Infrastructure Plan projects Charleston/Arastradero corridor, the Highway 101 bike and pedestrian bridge, and three artworks at the Public Safety Building. In addition, eight temporary murals in the commercial corridors of University Ave and California Avenue and artwork commissioned in partnership with the Palo Alto Art Center creating an outdoor gallery along Embarcadero Road. Municipal Project Maintenance Maintenance for the existing collection is allocated in the operating budget for the Community Services Department in the amount of $30,000 annually. Recent projects maintained and restored through these funds include the Greg Brown murals downtown, the California Avenue fountain, and the Nathan Oliveira sculpture at the Art Center. Temporary Public Art Projects In addition to the funding provided through the municipal ordinance described above, the Public Art Program receives baseline funding of $50,000, which is also allocated in the Art in Public Spaces capital project. This funding is generally reserved for temporary public art, such as exhibitions on King Plaza. This amount has served to help fund projects in years when the one percent allocation was small. Public art in private developments and the public art in-lieu fund On December 2, 2013, the Palo Alto City Council adopted an Ordinance to add chapter 16.61 to the Municipal Code establishing a requirement for public art in private development projects. This requirement applies to projects that: require architectural review, will be over 10,000 square feet, and have an estimated construction value of more than $200,000. The Ordinance provides the option of commissioning artwork on the development site equal to the cost of one percent of the estimated construction valuation or paying the one percent to the Public Art Fund in-lieu of commissioning art on site. Developers must complete in-lieu payments prior to the issuance of any building permit for the development project. The Private Development Public Art Ordinance is designed to be fully cost recovery. The public art in private development ordinance does not apply to: 1. Buildings or structures primarily used for religious worship; 2. Historic renovations; 3. Affordable housing developments; 4. Municipal facilities; 5. Repair or reconstruction of structures damaged by flood, fire, wind, earthquake or other disaster; 6. Seismic retrofit projects; or 7. Any project exempted by federal or state law. City of Palo Alto Page 6 Developers that choose to meet the requirements of this ordinance by commissioning their own public art on site must complete their artist selection, design development process and get initial and final approvals from the Public Art Commission prior to the issuance of a building permit. The final artwork must be installed and inspected by Public Art staff prior to the issuance of a final Certificate of Occupancy. Public Art staff works closely with the Planning Department, Development Services and the applicants throughout the process. Developers are required to submit five percent of their overall art budget to the City to offset staff time associated with oversight of this process. They may also choose to contract with staff to manage the public art process on site for an additional 15% of their budget. To learn more about the process, see the public art application packet that is provided to developers. Artworks installed through the private percent for art include artwork at Avenidas Senior Center at 450 Bryant Ave, the Stanford Mall at 180 El Camino Real, the Visa Building at 385 Sherman Ave., 430 Forest Ave., VMware at 3421 Hillview Ave., and the Bowman School at 639 Arastradero Rd. More than 60 projects have been subject to the private development ordinance between 2014 and 2020. To date, a total of 16 projects have been completed including 6 projects with installed artwork onsite and 12 projects paying the in-lieu contribution to the Public Art Fund. Currently, there are 40 active projects, including 11 projects with artwork to be installed onsite, 12 projects planning to pay the in-lieu contribution, and 17 undetermined. There are projects in the process of fabrication and installation currently, including 1050 Page Mill Road, 2600 El Camino Real, and 415 Page Mill Road. The Cubberley Artist Studio Program The Cubberley Artist Studio Program (CASP) supports the vitality of the arts in Palo Alto by providing City-sponsored, affordable studio space for artists, building creative community, and fostering public engagement with the arts and artists. The Cubberley Artist Studio Program consists of 22 studios, currently housing 23 artists. In exchange for subsidized studio space, the artists provide free public programming, such as recent online exhibitions and artist talks, artist portfolio reviews for community artists, and online workshops. In typical years, they host annual open studio days and community exhibitions. Additionally, the artists gift a work of art to the City collection in the first term of their residency. Artists are limited to two four-year residency terms once they are juried into the program through an open call to artists and a competitive process. The program requires some public art and CSD staff time but does not have a dedicated budget to run the program. Staff Support of the Public Art Commission The Public Art Commission consists of five members who meet monthly to advise City staff on the placement, funding amounts, and design development of temporary and permanent artworks on City property as well as on private development projects. Staff suport to the Commission consists of agenda planning; staffing Commisson meetings, creating minutes and City of Palo Alto Page 7 delivering meeting follow up items; supporting Commissioners through the artist selection panel process, public interactions and special events; regular check-ins with the Chair and Vice Chair regarding press, public letters and current events; and relaying resources about developing trends and best practices in the Public Art field. The Public Art Commission holds a retreat during September of each year to set the priorities for the following year in accordance with the Public Art Master Plan while balancing projects already in progress. The Commission will be discussing opportunities for temporary and permanent public art projects that support racial and cultural equity, diversity, community strength and resiliency. This could include temporary murals along University Avenue and California Avenue, permanent or temporary artworks resulting from an artist residency within a City department, or a permanent artwork at a City site focused on racial equity. Resource Impact The resource impact of this staff report will vary depending upon what action Council will take. There is no resource impact if Council chooses to continue the Public Art Program as defined in the Municipal Code. If Council chooses to suspend new funding allocations for either or both of the public art programs (municipal projects and private developments) the impacts are detailed below. Public Art Program Staffing The staffing for the Public Art Program is 2.2 FTE. The Public Art Program Director (Senior Community Services Manager) is partially funded by private percent for art funds and partially by general fund contributions. Other staff are funded wholly by general fund contributions. Municipal Projects (Art in Public Places CIP) Just over $2.0 million is currently allocated for public art related to municipal projects in AC- 86017 in FY2021, which includes approximately $500,000 of funding that was previously encumbered for public art installations that were started in prior years. Of the $1.5M of unencumbered funds, $200,000 is associated with the Downtown Garage project and planned to be shifted back to the Infrastructure Reserve in the Capital Improvement Fund during mid- year budget adjustments. In FY2022, approximately $190,000 is estimated as the 1% for public art from eligible FY22 planned capital projects. In addition to these funding allocations, as described above, the Art in Public Places project receives $50,000 annually as a base allocation from the Capital Improvement Fund. FY 2021 funding has not yet been encumbered to projects and could be reallocated by City Council if the Ordinance is suspended. Approximately $8,000 has been allocated in each fiscal year to cover staff expenses associated with a part-time Art Preparator / Maintenance position. This position is needed regardless of whether any new funding is provided for municipal projects as they are responsible for maintenance of the existing collection. If this ordinance is suspended, a new funding source for this position will need to be identified. At this time, staff has not identified an alternative source. City of Palo Alto Page 8 Private Development Projects As explained above, Public Art is required on-site for most large developments built in the City of Palo Alto and is designed to be fully cost recovery. Since this Ordinance was adopted in 2014, developers have contributed approximately $1.83 million in in-lieu fees. Up to twenty percent of in-lieu fees are used to support the administrative costs associated with managing the Private Development Program. One position is partially funded through Public Art In-lieu fees. This position is needed regardless of whether any new funding is provided for in-lieu projects as they are responsible for projects already in process as well as for oversight of developers who chose to create their own public art on developments. In FY2020, in-lieu fees supported approximately $40,000 of the salary and benefit costs of this position, and staff budgeted a similar level of support in FY2021 and anticipates this continuing for FY2022. If the Private Development Ordinance is suspended for two years, a new funding source will need to be identified for this position. Resource Impact Summary In summary, suspending FY2021 and FY2022 allocations for the Art in Public Spaces CIP (AC- 86017) could result in approximately $1.3 million of savings in the Capital Improvement Fund in FY2021 and $0.2 million to reallocate during the development of the FY2022 Capital budget and 2022-2026 Capital Improvement Plan. A new funding source for $16,000 of part-time salary and benefit costs will also need to be identified. Suspending the FY2021 and FY2022 developer payments for the Public Art in Private Development In-Lieu fund will result in the loss of developer paid revenues, which has ranged from $210,000 to $570,000 annually over the past few years and the need to identify a new funding source for approximately $80,000 in salary and benefit costs. Policy Implications The Public Art Master Plan was approved May 2016 by the Public Art Commission and the City Council formally adopted the Public Art Master Plan August 15, 2016. The Art in Public Spaces program is supported by several policies in the 2030 Comprehensive Plan. o Policy L-4.4.1 Study the feasibility of using public and private funds to provide and maintain landscaping and public spaces such as parks, plazas, sidewalks and public art within commercial areas. o Policy L-4.8 Ensure that University Avenue/Downtown is pedestrian-friendly and supports bicycle use. Use public art, trees, bicycle racks and other amenities to create an environment that is inviting to pedestrians and bicyclists. o Policy L-8.2 Provide comfortable seating areas and plazas with places for public art adjacent to library and community center entrances. o Policy L-8.5 Recognize public art and cultural facilities as a community benefit. Encourage the development of new and the enhancement of existing public and private City of Palo Alto Page 9 art and cultural facilities throughout Palo Alto. Ensure that such projects are compatible with the character and identity of the surrounding neighborhood. o Policy L-8.6 Seek potential new sites for art and cultural facilities, public spaces, open space and community gardens. o Program T1.19.5 Improve amenities such as seating, lighting, bicycle parking, street trees, public art and interpretive stations along bicycle and pedestrian paths and in City parks to encourage walking and cycling and enhance the feeling of safety. o Policy T-1.21 Maintain pedestrian- and bicycle-only use of alleyways Downtown and in the California Avenue area where appropriate to provide connectivity between businesses and parking and transit stops, and consider public art in the alleyways as a way to encourage walking o Policy C-3.4 Utilize the Public Art Master Plan, as amended, as a guide for the continued maintenance and preservation of the Public Art Collection. o Policy C-4.5 Expand the space available in the community for art exhibits, classes and other cultural activities, studios and galleries and other activities made possible by technical innovation, while maintaining and enhancing natural areas. Stakeholder Engagement The Public Art Program coordinates and collaborates with several City departments, the Public Art Commission, artists, local businesses, property owners, and the community. All public art projects include robust stakeholder engagement and involvement throughout the artist selection and art development process. Projects like Code:ART and the California Avenue Public Art Master Plan makes the broader engagement with residents and the business community especially visible. For example, Code:ART drew thousands of visitors to downtown Palo Alto to talk about the future of our underutilized spaces and alleys, and plans are in place to host a future CodeART event. The Public Art Commission has discussed the possibility of Council’s direction to suspend the ordinance at its August 20, 2020 meeting as it relates to the planning of its September retreat. Public Art staff has discussed the potential implications of a suspension internally, but broader community engagement has not taken place. Public Sentiment for the Program Feedback on the City’s public art projects has been overwhelmingly positive throughout the years with many public comments and active volunteer participation. A few select quotes include: • Feedback on the overall collection of public art o Public art enhances our shared spaces in Palo Alto, and I love all your temporary installations as well as the permanent artworks. o Thank you!!! Your work makes our city such a beautiful town to live and work. • Feedback on specific installations o “It has been amazing to see this [Black Lives Matter Mural] unfold and progress so rapidly. And the finished work is so moving and inspiring. I am proud to know that Palo Alto and @publicartpa stepped forward to make CA one of 43 states that have painted this message on pavement. With great appreciation!” City of Palo Alto Page 10 o This mural [Under the Sun by Mohamed Soumah] always makes me smile - especially on drizzly winter days. o [The Year of the Ocean mural in California Avenue bike and pedestrian underpass] I have always loved this mural since I was a child--so glad to see it refreshed. It's neat--whimsical and fun, without pretensions. o Seeing this here [the Blue Trees] makes me happy! Kudos to Konstantin Dimopolous and Palo Alto Public Art for bringing this thought-provoking installation to Palo Alto!! You’ve created so many unique art experiences that enliven our town, turning it into a more interesting, intellectual, cultural, and arts-rich place. • Feedback on special events including the Code: Art Event o Love it! So fun for all ages and anyone can participate. Temporary art is the best. o There is a feeling and sense of community in this event. We like that. o Wonderful enhancement to downtown Palo Alto. Would like more of it! Environmental Review The recommended action is not considered a Project as defined by the California Environmental Quality Act. Attachments: • ATTACHMENT A Public Art Images APPENDIX A: Public Art Images Greg Brown, Boy Fishing, located on the downtown Post Office and Garbage Man with Venusian in Can located on Hamilton Avenue. Greg Brown began painting his whimsical murals in Downtown Palo Alto in 1975, the same year that the Visual Arts Jury and the Art in Public Spaces Program were formalized by Council. Nude in Steel, 1976 by Hans Wehrli The City’s first acquisition of a permanently sited outdoor sculpture, Nude in Steel was originally temporarily exhibited in front of the Palo Alto City Hall. Installed at its current site in front of Rinconada Library in the 1990s, the sculpture has welcomed generations of library visitors and occasionally is found with a flower tucked behind her ear. Welcome Wagon, 2019 by Pete Beeman is the most recently installed permanent artwork at the new Fire Station 3. The artist worked closely with Fire Department staff on the design development for a kinetic bench Byxbee Park’s iconic Pole Field is one of several earthwork installations by Peter Richards and Michael Oppenheimer that is still standing. Bruce Johnson’s After the Fire was one of several sculptures purchased in the 1980’s and is a favorite for children playing in Mitchell Park to explore. Push, by Fred Hunnicutt was installed in the same timeframe. Brad Oldham’s Wise and Whimsy bollards greet visitors to the Mitchell Park Library and Community Center and offer a seat for those who need it. Roger Stoller’s Cloud Forest design was inspired by the coastal redwoods and spreading seeds of knowledge at the library. All four artworks at the Mitchell Park Library and Community Center were developed after extensive stakeholder engagement. Murals by Chris Johanson, David Huffman and Joey Piziali are prime examples of artworks commissioned in partnership with California Avenue businesses to create the “Avenue of the Arts”. Brilliance, 2014 by Joe O’Connell and Blessing Hancock is a series of sculptures that incorporate language sourced from the Palo Alto community about biological, intellectual, and artistic growth. These six sculptures animate the space between the Art Center and the Rinconada Library. Colin Selig’s creative seating along University Avenue were originally a temporary installation. After a lot of positive community feedback, the City decided to purchase the works to keep them downtown. Installation of temporary environmental sculpture Foraging Island by artists Mary O’Brien and Daniel McCormick at Byxbee Park during their artist residency at the Palo Alto Baylands Nature Preserve. 69 community volunteers ranging in age from 6 to 90, donated a total of 189 hours to help the artists create Foraging Island. Two of eight temporary installations from the 2017 Code:ART festival that drew approximately 10,000 visitors to downtown Palo Alto over three days, animating underutilized alleyways and spaces. The planned Code:ART2 festival has been postponed to October 2021. King Plaza has been the site of ongoing temporary public art installations since 2015, inviting visitors to visit the plaza and experience something new. The current installation titled Bucolic Labyrinth by Paz de la Calzada features an audio guide for those seeking instruction on how to walk a labyrinth. Photo Credits: Palo Alto Camera Club, Jim Colton, Mary O’Brien, and Creative Machines The Artwork Forge by Toby Atticus Fraley. Over the course of the installation, the sculpture dispensed approximately 2,000 pieces to the public, twice the amount Public Art staff anticipated. There was an outpouring of social media engagement with this temporary installation as well as repeat visitors to King Plaza. The Palo Alto Public Art program delivers tangible, community-building benefits to the city. In the recent past, it has brought street-traffic to commercial districts, messages of resilience to traffic corridors, and the material of imagination to residential areas. It has brought us together, challenged us, and encouraged us to think differently. Because of these efforts, the public art program is nationally recognized. Now it is time to look forward. The Council has made clear the city’s dedication to recovering from Covid-19 and to promoting a more equitable city. This difficult moment comes with difficult budgetary decisions. The Public Art Program provides the Council and the city a valuable instrument through which to pursue priority goals. Reducing the program will reduce the ability of the city to deliver – often in wonderful, creative ways – those shared goals. Public Art Delivers While a case may be made for arts and artistic endeavors for their own sake, the public art program is focused on enriching life in Palo Alto, and it has flourished by doing so. Code Art, for example, a temporary art public art event held downtown in June 2017, drew thousands of people to the downtown area over the course of a weekend. As people visit Palo Alto to view and visit public art pieces, they spend money in restaurants, coffee houses, bars, shopping and parking. The money spent contributes to the economy and well-being of Palo Alto. More recently, the City Council charged the Public Art Commission (PAC) with working with artists and the community to develop a mural in support of Black Lives Matter (BLM). The BLM project was sent to the PAC on June 15, 2020. The PAC voted to move forward on the project on June 18, 2020, and the BLM mural was completed on June 30, 2020. A panel held in conjunction with the mural gave contributing artists the opportunity to explore with the public, their contributions. The mural and panel provoked important discussion, reflection and learning, was heartily received by the community, and received national attention. Wider evidence supports these arguments for public art programs. Art and public art are a proven way to boost morale during shelter-in-place. A study by Americans for the Arts puts such local programs in wider, national and historical context: Art in public spaces plays a distinguishing role in our country’s history and culture. It reflects and reveals our society, enhances meaning in our civic spaces, and adds uniqueness to our communities. Public art humanizes the built environment. It provides an intersection between past, present, and future between disciplines and ideas. Public art matters because our communities gain cultural, social, and economic value through public art. Funding Matters Funding is a key issue for the public art program. Funds are derived from the percent for art for capital improvement projects. A few details are key here: First, the 2020-2021 fiscal year funding of $1 million was an abnormality for funding of the public art program. The public safety building and associated parking garage contributed to an extremely atypical amount of money for the public art program. Normal funding is approximately between $30,000 to $50,000 a year for public art. For these two projects, artists have been selected and are under contract (funds have been allocated to cover contract costs) to produce the artworks. The normal process is to select artists for a project and have them collaborate with the architects to seamlessly integrate public art into the building. Second, as Council Member Kniss argued during an earlier hearing, a suspension in funding will be difficult to undo or rollback. The loss of staff risks the loss of expertise and dedicated service. If staff is laid off and they find new jobs, a vast wealth of experience will be lost. Third, and most importantly, any suspension in the funding “percent-for-art” funding will limit the ability of the program to respond to current events. It will reduce the development of art that draws visitors to commercial corridors. It will reduce the opportunities for city residents and visitors to gather, at safe distance, and to celebrate our shared resilience and space. Palo Alto Public Art is Focused on Delivering Now The PAC recently approved three priorities for the new twelve months. These priorities align with those of the Council and the city: 1. Develop public art that aids in Palo Alto’s recovery from the Covid-19 crisis by supporting projects that encourage pedestrian traffic and the use of pedestrian-friendly streets, that are located near Palo Alto neighborhoods, as well as commercial corridors and storefronts, and that advance PAMP goals; • Opportunities include: microgrants for temporary public art; Code ART2. 2. Develop public art projects that will continue to advance cultural inclusion and social and racial equity; • Opportunities include: transportations gateways; widening network of artists as with the BLM mural. 3. Widen and strengthen education and advocacy for public art, including through the adoption, roll-out and implementation of the California Ave District Master Plan and the Baylands Art Plan; • Other opportunities include: position paper; infographic; outreach to all Council members. And the PAC is moving rapidly to deliver for our city, by recently approving a microgrants-pilot program to enliven the downtown, mid-town and neighborhood areas. Up to 40 grants will enable sculptures, pictures, posters, murals and even musical performances that help us rebuild. The two papers below offer insights into covid-19 response and public art: Art and public art during the covid-19 pandemic are a way to boost the morale of people that have been in quarantine for months at a time. One paper - Culture & Community in Time of Crisis (https://s28475.pcdn.co/wp-content/uploads/2020/07/CCTC-Key-Findings-from-Wave-1_final.pdf) is a national online survey of audience behaviors, attitudes, motivations, and barriers to cultural participation during the current pandemic. A follow-up study will be published after the pandemic ends. Another study from the Americans for the Arts, Why Public Art Matters 2018 - https://cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=63001.25&BlobID=73346. The Public Art Program has thrived as a result of the City Council, the PAC, city residents and visitors, and, expert and dedicated staff. It is focused on promoting joy, reflection, equity, resilience and creativity – any severe reduction in its funding based on the details of anomalous year, will have effects for years to come. Palo Alto Public Art Commission Ben Miyaji – Chair Loren Gordon – Vice Chair Ian Klaus – Member Nia Taylor – Member Hsyina Shen - Member City of Palo Alto (ID # 11605) City Council Staff Report Report Type: Informational Report Meeting Date: 10/5/2020 City of Palo Alto Page 1 Summary Title: Update Regarding the North Ventura Coordinated Area Plan & Developments in the Project Vicinity Title: Update Regarding the North Ventura Coordinated Area Plan and Developments in the Project Vicinity From: City Manager Lead Department: Planning and Development Services Recommendation This is an informational report and no City Council action is required. Executive Summary This report provides an overview of activities undertaken to date to support the development of the North Ventura Coordinated Area Plan (NVCAP). This report also discusses proposed developments within and nearby to the NVCAP area to keep the Council and community informed. The purpose of the North Ventura Coordinated Area Plan is to capture the City’s vision for this neighborhood in a regulatory document. The document will include land use policies, development standards, and design guidelines for future development. The neighborhood plan will include multi-family housing units, ground-floor retail spaces, public open spaces, and creek improvements. An interconnected street grid will take advantage of the area’s proximity to the Caltrain station, the California Avenue retail corridor, and the El Camino Real arterial. Background The NVCAP project area lies within the Ventura neighborhood of Palo Alto. It is comprised of approximately 60 acres, roughly bounded by Page Mill Road, El Camino Real, Lambert Avenue, and the Caltrain tracks. The plan area is near key community destinations such as the California Avenue Caltrain Station, California Avenue Business District, and Stanford Research Park. The plan area represents a rare opportunity within the City to plan proactively for a transit‐oriented, mixed‐use neighborhood. City of Palo Alto Page 2 The area plan’s genesis lies in the 2015-2023 Housing Element and Land Use & Community Design Element of the City’s 2030 Comprehensive (Comp) Plan, which calls for site-specific planning in the North Ventura area. The Comprehensive Plan anticipated this location as suitable for a significant amount of new housing in a mixed-use, walkable neighborhood. Program L4.10.1 of the Land Use and Community Design Element of the Comp Plan directs staff to prepare a coordinated area plan for this neighborhood. On March 5, 2018, the City Council adopted the preliminary goals and objectives for the coordinated area plan, along with the boundary area for the NVCAP project. The adopted goals addressed the following topics: (1) Housing and Land Use; (2) Transit, Pedestrian, and Bicycle Connections; (3) Connected Street Grid; (4) Community Facilities and Infrastructure; (5) Balance of Community Interests; (6) Urban Design, Design Guidelines, and Neighborhood Fabric; and (7) Sustainability and the Environment. In June 2018, after a competitive solicitation process, the City Council appointed consultant Perkins + Will to assist the City and Working Group in preparation of the NVCAP. Likewise, the City Council appointed 14 members to a Working Group in April 2018. The Working Group convened its first meeting in October 2018. This fall, the Working Group will mark its two-year anniversary. The list below provides a timeline of activities and milestones from the past two years. • March 2018 – City Council approves project goals • April 2018 – Working Group appointed1 • June 2018 – Consultant team, Perkins + Will, selected through competitive process • October 2018 – First Working Group meeting held • December 2018 – City School Committee presentation and discussion • January 2019 - A survey, conducted by Page and Turnbull in January 2019, of all properties 50 years and older within the NVCAP area revealed that no properties are listed on the City of Palo Alto Historic Inventory, the National Register of Historic Places (NRHP), or the California Register of Historic Places (CRHP) 2 • February 2019 – Community workshop held3 • March 2019 – Joint town hall held with Working Group members and City Council4 • July 2019 – Historic Resource Board met and concurred with analysis that 340 Portage and 1 Staff report: https://www.cityofpaloalto.org/civicax/filebank/documents/64658 2 Preliminary Historic Resource Eligibility Analysis: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=47266.35&BlobID=76212 3 Workshop materials available: https://www.paloaltonvcap.org/events-calendar/2018/10/17/c-w-1 4 Staff report: https://www.cityofpaloalto.org/civicax/filebank/documents/69619 City of Palo Alto Page 3 3201-3225 Ash Street are historically significant properties eligible for the NRHP and CRHP5 • August 2019 – City Council approved funding and contract to support feasibility study regarding options to naturalize Matadero Creek; City selected Wetlands Research Associates to conduct the study • Fall 2019 – Selection by Working Group of two co-chairs, Angela Dellaporta and Gail Price • Fall/Winter 2019 – Staff requested and received a one-time grant extension from Caltrans • September 2019 – City Council supported an enhanced contract for the consultant team, Perkins + Will, but did not support allocation of additional budget to fund the contract • January 2020 – Presentation of creek feasibility study initial options to Parks and Recreation Commission • February 2020 – City School Committee presentation and discussion • February 2020 – Second community workshop held; this was a joint workshop which also discussed the design for an expanded Boulware Park6 • March 2020 – Community outreach questionnaire for feedback on draft alternatives • April 2020 – Study session with the Planning & Transportation Commission to introduce the project and initial feedback on the draft plan alternatives In addition, the actions above, the Working Group has met over 15 times. Since the issuance of the Shelter-in-Place Order on March 16, 2020, the Working Group has met remotely. Information regarding each meeting, including materials, presentations, public correspondence, staff reports, and minutes can be found at the project website: https://www.paloaltonvcap.org/. Discussion Presently, the Working Group and staff are focused on finalizing three draft alternatives for presentation to the Planning and Transportation Commission (PTC). Staff plan to bring forward the three draft alternatives in November or December 2020. The PTC will discuss the alternatives and recommend an alternative to the City Council. Staff will then bring the alternatives, including the PTC recommendation, to the City Council for selection of the preferred alternative. Due to budget limitations, the three alternatives will be conceptual, though supported by the qualitative and quantitative data available to the City. After the City Council selects a preferred alternative and provides direction for refinement of the alternative, the City will direct the consultant team to undertake further study and refinement of the preferred alternative. Staff will return to the City Council for review of the 5 Staff report: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=48263.8&BlobID=76213; Meeting minutes: https://www.cityofpaloalto.org/civicax/filebank/documents/74501 6 Workshop materials available here: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=75762&t=62495.71 City of Palo Alto Page 4 revised alternative and with the additional data and information. After consideration by the City Council and affirmation of or direction to further refine the preferred alternative, the environmental review process of the preferred alternative will begin along with development of the final plan documents—including design standards. The environmental review and draft plan documents will return for City Council consideration. Once adopted, the plan will be finalized. Spring & Summer 2020 During the spring and summer of 2020, the Working Group has focused on responding to the three draft alternatives prepared and published in December 2019 and January 2020. Based on initial feedback, the alternatives were revised; the revised alternatives were presented at the community workshop held in February 2020. The City also published an online questionnaire to allow members of the public who could not attend the workshop to provide feedback regarding the draft alternatives.7 Following this, Working Group members were invited to prepare proposed alternatives. Several members responded and prepared draft alternatives. The Working Group read about the proposals and heard each creator of a draft alternative discuss their proposal. Throughout the summer (June, July, August), the co-chairs and staff collaborated to host a series of full Working Group and sub-committee meetings designed to facilitate dialogue and deep conversation about specific issues. By tackling issues such as open space, housing, height, bike facilities—and more—Working Group members were able to clearly hear the preferences and opinions of other members. For some topics, clear consensus emerged. For example, all Working Group members value provision of a public park in the plan area. In other areas, preferences hovered between two different options. For example, preferences for maximum building height ranged from 3 stories to 6 stories, with some folks preferring 3-4 and others open to 4-6. This process allowed for rich discussion, deepening understanding and relationships, and restablishing trust between City staff and members of the Working Group. It should be noted, since the community workshop and in the wake of budget cuts, City staff have been entirely responsible for staffing the Working Group meetings. While the process has not enjoyed some of the talents of the consultant team, the close working relationship of staff and the co-chairs has been invaluable. Staff will re-engage the consultant team in advance of 7 View the survey questions: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=76365&t=68497.3 View the responses to multiple choice questions: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=76366&t=68497.31 View the responses to open-ended questions: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=76367&t=68497.31 City of Palo Alto Page 5 the PTC hearings. Further, staff would like to especially recognized the extrodinary efforts of the co-chairs. In particular, special recognition goes to Angela Dellaporta who has gone above and beyond her duties as co-chair, using her skills as a teacher and facilitator to assist the Group’s preparation for robust, healthy discussions. Proposed Development In and Around the NVCAP Area While the NVCAP process has continued, property owners have brought forward proposals for development in and around the plan area. Some propose mixed-use developments that include housing and commercial space, while others present commercail applications. Overall, this section of the report provides information regarding some of these proposals. Two of the three proposals seek to develop Planned Communities, as Council recently revived PCs under “Planned Home Zoning.” Following Council’s discussion of affordability requirements for PHZs on September 21, 2020, more projects may be proposed. Some Working Group members were surprised that the City is processing applications for planning entitlements and other planning applications in the plan area. Some Working Group members are concerned the work to create a plan for the area may be undermined by development that is entitled before the plan is complete; there is concern that such projects may not conform to the vision of the Working Group nor realize the goals outlined by the City Council. Presently, the City has not enacted a moratorium prohibiting development in the plan area. Applicants can propose projects and request planning entitlements; and staff must process these applications as they would any applications submitted to the City. Further, the City cannot enact a moratorium that imposes restictions or limitations on housing development, including mixed-use development, within all or a portion of the city. This is due to SB 330, which was signed into law by Governor Newsom in 2019. The City could impose a moratorium on commercial development. The following applications and pre-screenings have been submitted to the City for projects in or near the plan area: 1. 340 Portage located in the plan area 2. 2951 El Camino Real located in the plan area 3. 3300 El Camino Real located near the plan area In addition, owners of single family homes have inquired about local rules governing development of accessory dwelling units. No formal applications have been submitted. Following Council’s consideration of changes to the accessory dwelling unit (ADU) ordinance on October 5, 2020, the City may see application submissions for ADUs. 340 Portage City of Palo Alto Page 6 340 Portage is often referred to as “the Fry’s site;” this is because until the end of 2019, Fry’s electronics was located on this parcel. Historically, this building served as cannery; one of the three largest and owned by Chinese American entreprenuer Thomas Foon Chew. Presently, the building houses a variety of research and development tenants. The retail site once occupied by Fry’s remains vacant. The owner, the Sobrato Organization, requests a text amendment to Palo Alto Municpal Code section 18.70.070. The code section currently reads: “The nonconforming uses of the property at 3200 Park Boulevard/340 Portage Avenue/Olive Avenue for retail, research and development, warehouse, and storage uses are permitted in approximately the same ratio of uses existing as of October 16, 2006, subject to the following limitations: (1) retail uses shall not exceed 60,000 square feet, and (2) truck deliveries and other noisy outdoor activities shall be limited to the hours of 8:00 a.m. to 9:00 p.m. weekdays and 9:00 a.m. to 9:00 p.m. weekends.” The applicants seeks a zoning text amendment to remove the phrase, “in approximately the same ratio of uses existing as of October 16, 2006.” Through this amendment, the applicant seeks to allow a variety of retail, research and development, warehouse, and storage uses at this site. In the letter accompanying the application, the owner indicates that a Target may open in the site if the text amendment is approved. It should be noted, however, that a Target retail use is a permitted use and can open in this location without a text amendment. Though the site is identified in the City’s certified Housing Element as a housing opportunity site, the property owner has not proposed housing on this site. Additionally, the owner has stated an intention to retain the building; there are no plans to demolish the building. 2951 El Camino Real This project will be before the City Council for prescreening on October 5, 2020. The development is proposed to be a five-story mixed-use building with one underground parking level. The development includes 116 dwelling units and approximately 5,000 square feet (sf) of ground floor office space and 1,000 sf retail/commercial space. The site’s current zoning is both CS (Commercial Services) and R-1 (Single-Family). The development standards for these zoning districts do not allow for the proposed size of the development and number of dwelling units. 3300 El Camino Real This proposed project is not located in the plan area; it is located across the street from the NVCAP area in the Stanford Research Park. This project came before City Council in a pre- screening on June 22, 2020. Similar to the project above, this project proposes to seek approval City of Palo Alto Page 7 as a Planning Housing Zone (also known as the Planned Community Zone in the Palo Alto Municipal Code). The applicant is proposing two buildings, including a five-story multi-family residential development with 187 units (approximately 180,000 sf) and a two-story office/retail development (approximately 55,000 sf). The floor area ratio (FAR) would be approximately 1.8 to 1. The office component floor area is consistent to the underlying zoning with contemplated increases being associated with the housing project and limited retail area. Five percent of the space is anticipated as amenity floor area to accommodate a gym or similar space for workers. The buildings would have one-level of shared underground parking. The below-grade parking facilities show 352 spaces to accommodate the residential, office, and retail uses, which is within about 20 spaces of the required parking total for such uses. The height of the commercial building is shown to be 35 feet. The height of the multi-family residential building is 60 feet to the ridge of a sloped roof and some stair and elevator shafts extend to 67 feet. Community Outreach The City does not require project applicants to hold community meetings prior to submitting applications nor during the application review process. City planners have expressed to applicants that holding community meetings may be desirable. Planners have also offered to connect project applicants with community members to facilitate meetings or discussion should applicants seek to host any such meetings. In addition to these efforts, planning staff will work to keep Working Group members abreast of proposed applications as they are submitted. Summary of Key Issues Currently, there are no acute issues challenging the project nor are there any issues that require City Council consideration. Overall, the NVCAP process continues to make steady progress despite a limited budget and staff turnover. Staff believe the project can meet the project objectives within the allotted project budget. The deliberations related to the ongoing Regional Housing Needs Allocation (RHNA) process suggest that the City of Palo Alto may receive an allocation of housing units that far exceeds the 5th cycle allocation of 1,988 housing units. The significant increase in allocated housing units as well as the persistent housing needs of Palo Alto residents suggest the City should continue supporting the NVCAP’s vision of a walkable, mixed use neighborhood, that creates housing opportunities. Additional planning will be necessary to identifying housing opportunity sites to satisfy the City’s RHNA. The NVCAP area cannot absorb the entire 6th cycle RHNA allocation. Lastly, Council can consider advancing a moratorium on commercial development in the plan area. The moratorium could be limited to commercial projects only. A moratorium that would limit housing development, including mixed-use housing development, would violate State law. City of Palo Alto Page 8 Timeline Staff anticipates bringing three draft plan alternatives to the Planning and Transportation Commission so that the PTC can recommend a preferred alternative to the City Council. Staff anticipates bringing these three draft alternatives to the PTC before the end of 2020. On October 8, 2020, the Working Group will hold a meeting to discuss three draft alternatives. These draft alternatives reflect the preferences of the Working Group members expressed during the summer discussions and through the draft alternatives proposed by Working Group members. Stakeholder Engagement Earlier portions of the staff report detail the stakeholder engagement, including the Working Group as well as additional community and stakeholder outreach. Environmental Review This staff report is informational only and is exempt from the California Environmental Quality Act.