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HomeMy WebLinkAbout2021-06-01 City Council Agenda PacketCity Council 1 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY’S WEBSITE. Tuesday, June 1, 2021 Special Meeting 5:00 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available on the City’s website, 11 days in advance. ***BY VIRTUAL TELECONFERENCE ONLY*** CLICK HERE TO 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. PUBLIC COMMENT Members of the public may speak to agendized items; up to three minutes per speaker, to be determined by the presiding officer. If you wish to address the Council on any issue that is on this agenda, please complete a speaker request card located on the table at the entrance to the Council Chambers, and deliver it to the City Clerk prior to discussion of the item. You are not required to give your name on the speaker card in order to speak to the Council, but it is very helpful. Public comment may be addressed to the full City Council via email at City.Council@cityofpaloalto.org. TIME ESTIMATES Time estimates are provided as part of the Council's effort to manage its time at Council meetings. Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. HEARINGS REQUIRED BY LAW Applicants and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and up to three minutes for concluding remarks after other members of the public have spoken. Call to Order Special Orders of the Day 5:00-5:15 PM 1.Proclamation Honoring Gunn High School Football Coach Jason Miller 2.Proclamation Honoring Gunn High School Titans Football Team Study Session 5:15-6:30 PM 3.Discussion of the Format for Meetings of the City Council and Other Public Bodies Potentially Beginning August 2021 REVISED Presentation 2 June 1, 2021 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY’S WEBSITE. Agenda Changes, Additions and Deletions Oral Communications 6:40-6:55 PM Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration o f Oral Communications period to 30 minutes. Minutes Approval 6:55-7:00 PM 4.Approval of Action Minutes for the May 17 and 18, 2021 City Council Meetings Consent Calendar 7:00-7:05 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 5.SECOND READING: Adoption of Ordinances Responding to State Housing Bills Regarding Density Bonus and Affordable Housing, Environmental Assessment: Exempt Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3) (FIRST READING: May 18, 2021 PASSED: 7-0) City Manager Comments 7:05-7:15 PM Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 7:15-7:45 PM 6.Approval of the Tri-party Fire Agreement for Foothills Reserve Fire Station Staffing During Fire Season 7:45-9:00 PM 7.Discussion on the Scope of Economic Development and Resources Needed for Implementation; and Direction to Staff on the Desired Scope and Goals of Future Investment 9:00-10:00 PM 8.Adoption of an Ordinance Establishing Board and Commission Term Limits, Consolidating Recruitment to May of Each Year, and Codifying the Human Relations Commission's Existing Role of Recommending Grant Funding 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. Presentation Public Comment Presentation B&C Handbook 9.PUBLIC HEARING: Adoption of a Resolution to Suspend Assessments for Fiscal Year 2022 for Downtown Business Improvement District (BID) (STAFF REQUESTS THIS ITEM BE CONTINUED TO JUNE 7, 2021) Presentation 3 June 1, 2021 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION ON THE CITY’S WEBSITE. Additional Information Standing Committee Meetings Finance Committee Meeting Cancelled June 1, 2021 Schedule of Meetings Schedule of Meetings Public Letters to Council Set 1 Set 2 Set 3 Set 4 Set 5 Set 6 4 June 1, 2021 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION 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 o n 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. CLICK HERE TO JOIN Meeting ID: 362 027 238 Phone:1(669)900-6833 CITY OF PALO ALTO OFFICE OF THE CITY CLERK June 1, 2021 The Honorable City Council Palo Alto, California Proclamation Honoring Gunn High School Football Coach Jason Miller ATTACHMENTS: • Attachment A: Proclamation Honoring Gunn High School Coach Jason Miller (DOCX) Department Head: Beth Minor, City Clerk Page 2 Proclamation __________________________ Tom DuBois Mayor HONORING COACH JASON M. MILLER WHEREAS, Coach Jason Miller, as a 21 year-old offensive coordinator, broke the state rushing record at 7,309 yards at Inglewood High School; at Compton High School, Coach Miller took a winless program to the playoffs the next year in Southern California’s toughest division, as well as won the San Gabriel Valley League championship in 2015; and WHEREAS, as a Special Education teacher in the Therapeutic Support Program at Greene Middle School, Mr. Miller was lauded for turning around the class, helping students transition to the general education setting; upon his hiring at Gunn High School in 2018 as football coach and Social Studies teacher, Mr. Miller was honored by Santa Clara County as Civic Engagement Teacher of the Year. He was a finalist for Gunn High School’s Teacher of the Year and was voted by SCVAL peers as Coach of the Year in 2019; in January of 2020, he was selected as head coach in the prestigious Charlie Wiedermeyer All-Star Game; and WHEREAS, Coach Miller instituted a mandatory study hall and behavior standards which eliminated grade and behavior issues in the team; prior to his arrival, Gunn had won two league games in five years and averaged losing by 18 points per game in the 2019 league; with Mr. Miller, the team won five league games in 2021 and the Gunn Titans average margin of victory was 36 points in the El Camino Division of the SCVAL in Spring 2021; Gunn football in 2021 dominated the competition, going undefeated for the first time in fifty years (1971) and dominating the Central Coast Section statistics; and WHEREAS, Jason Miller is the lead teacher in the Social Justice Pathway program and his work in the classroom has spilled onto the field; the Gunn football team participated in political and civil rights demonstrations during the summer and the “Stop Asian Hate” campaign as the season unfolded; and WHEREAS, Coach Miller has reformed the Gunn Titan football program and transformed the reputation of the athletics program in the San Francisco Bay Area by infusing social consciousness into the constitution of his football program. The impact he has on the lives of Palo Alto’s youth and adults is immeasurable. NOW, THEREFORE, I, Tom DuBois, Mayor of the City of Palo Alto on behalf of the entire City Council do hereby recognize and applaud Jason Miller for excellence in leadership, coaching ethic, commitment, and character. PRESENTED: June 1, 2021 CITY OF PALO ALTO OFFICE OF THE CITY CLERK June 1, 2021 The Honorable City Council Palo Alto, California Proclamation Honoring Gunn High School Titans Football Team ATTACHMENTS: • Attachment A: Proclamation Honoring Gunn High School Football Team (DOCX) Department Head: Beth Minor, City Clerk Page 2 Proclamation __________________________ Tom DuBois Mayor HONORING GUNN HIGH SCHOOL TITANS FOOTBALL TEAM WHEREAS, the Gunn High School football team showed incredible character, bravery and leadership during a pandemic by adhering to Covid-19’s ever-changing rules and procedures; being the first team on Gunn’s campus to condition in pods; and WHEREAS, the team demonstrated civic responsibility and leadership by taking active roles in demonstrations to bring attention to the value of Black Lives in the United States; wearing decals in support of the “Stop Asian Hate” campaign; promoting social justice causes in interviews with the San Jose Mercury News; and WHEREAS, the team prepared for the 2021 Spring season over a fifteen-month period where conditioning workouts and practices were virtual for extended periods of time; Gunn’s football team finished the season with a 5-0 record, the first undefeated record for a Gunn Titans Football Team since 1971; and WHEREAS, the team finished the season with the following leaders in statistics: Richard Jackson IV finished 1st in the Central Coast Section (CCS) in rushing yards with 854 yards; James Lambert finished 5th in CCS with 641 yards; the Titans finished both 1st in California with 2,326 rushing yards. Gunn finished 1st in CCS in points scored (49.8 points per game); Richard Jackson IV scored 96 points (15 TDs) 4th in the state and 1st in CCS. This year’s postseason honorees include: Coaches’ Award, Winston Qui, Lineman of the Year; All Bay Area Honorable Mention Eskinder Erlan, Iron Man Award Neil Hanson, Friendship Award Griffin Willard, Most Inspirational Evan Cole, Defensive Player of the Year Filippi Montes, Offensive Player of the Year and Honorable Mention All-Bay Area James Lambert, Special Teams Player of the Year Joakim Bonnet, and Most Outstanding Player, 2nd team All-Area Richard Jackson IV. NOW, THEREFORE, I, Tom DuBois, Mayor of the City of Palo Alto on behalf of the entire City Council do hereby recognize and send up a big cheer for the 2020-2021 Gunn Football Team and applaud them for their activism, discipline, extraordinary perseverance that has brought honor to their team, their school and to our community. PRESENTED TO: Evan Cole, Griffin Willard, Kevin Green, Richard Jackson, Emrey Cohen, James Lambert, Cory Hallada, Eskinder Erlan, Neil Hanson, Ayush Nagrani, Eric Wang, Winston Qui, Denzel Davis, Evan Wiederhold, Eugene Kim, Bradley Phan, Noah Panousis, Fillipi Montes, Jonah Easton, Mick Dobrov, Arjun Raja, David Hafoka, Ilan Kim, Nico Kapoor, and Sione Fisiiahi. PRESENTED: June 1, 2021 City of Palo Alto (ID # 12314) City Council Staff Report Report Type: Study Session Meeting Date: 6/1/2021 City of Palo Alto Page 1 Summary Title: Discuss the Future Format and Forum for Public Meetings Title: Discussion of the Format for Meetings of the City Council and Other Public Bodies Potentially Beginning August 2021 From: City Manager Lead Department: IT Department Recommendation Staff recommends the City Council review and give direction on the various options outlined for the conduct of meetings of the City Council and other bodies subject to the Ralph M. Brown Act after the shelter in place and emergency order restrictions are lifted, potentially occurring before City Council’s return from its summer break, August 1, 2021. Recommended Motion Staff recommends City Council direct staff to plan for a hybrid model for City Council meetings to be implemented following the lifting of emergency order restrictions, and confirm any change to its Procedures and Protocols regarding remote attendance of Council members. Background The City Council and other boards, commissions and committees conduct their business in a public forum on behalf of the community we represent, in accordance with the requirements of California’s Ralph M. Brown Act (Gov Code § 54950, et seq.). The Brown Act requires local government business to be conducted at noticed public meetings, with limited exceptions. The Act includes numerous procedures regarding location, attendance, agendas and public participation opportunities. Historically, this has meant meetings that occur at a City facility, open to all and often televised. Relevant here, the Brown Act allows bodies to use audio and/or video teleconferencing to meet, deliberate, and take public comment, provided that all the following requirements are met: 1. At least a quorum of the public body must participate from locations within the local agency’s jurisdiction. 2. All remote locations from which a member of the body is participating must be made available for the public. City of Palo Alto Page 2 3. Each remote location must be specifically identified in the notice and agenda of the meeting, including a full address. 4. Agendas must be posted at each remote location, even if a hotel room or a residence. 5. Each remote location, including a hotel room or residence, must be accessible to the public and have technology, such as a speakerphone, to enable the public to participate. 6. The agenda must provide the opportunity for the public to address the legislative body directly at each teleconference location. 7. All votes must be by roll call. In addition to these state law requirements, the City Council’s procedures discourage Council Members from participating via teleconference and limit Members’ use of teleconferencing to three occasions per year. (Palo Alto City Council Procedures and Protocols Handbook , pp. 6-7.) In March 2020, the County of Santa Clara and State of California issued shelter-in-place orders in response to the COVID-19 pandemic. On March 17, 2020, Governor Newsom issued Executive Order N-29-20, which, among other things, suspended the provisions of the Brown Act numbered 1 through 6, above. These changes made it easier and safer for Brown Act bodies to meet remotely, with meeting participants joining virtual platforms such as Zoom or WebEx, for the continued conduct of the government’s business. Since March 2020, the City has been conducting public meetings via virtual teleconference only, with no central physical location where members of the body, staff and the public gather. In the interests of health and safety, the Council suspended enforcement of its procedure limiting teleconferencing to three times per year. Teleconferencing has been used as the sole means for meetings of all public bodies subject to the Brown Act, including the City Council, Council committees, and the various City boards and commissions. The meetings are 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 the agendas. Discussion The administration is bringing this item forward for City Council deliberation and feedback as we move towards the end of shelter-in-place and social distancing requirements. The Governor of California has June 15th as the date for “reopening,” assuming the state hits certain statistics regarding positivity and vaccination rates. While details are not yet available, staff anticipates that the Governor’s emergency orders, including Order N-29-20, which suspended Brown Act requirements in order to support full teleconferencing, may end at that time. Unless the state Legislature amends the Brown Act and makes those amendments effective immediately, the City of Palo Alto Page 3 underlying provisions of the Brown Act (numbered 1 through 6, above) will once again be applicable and binding on cities. In preparation for the potential sunset of emergency orders, staff ha s been tracking a number of legislative actions that are currently in various stages with the State of California. Many organizations have both benefitted and struggled with the current remote model, and potential new legislation may provide for some changes to the current Brown Act. Brief summary of the current pending legislation under consideration by the State of California follows the table of scenarios outlined for Council’s consideration . However, should the current State emergency order not continue past June 15th, and the likely scenario that new legislation not be passed timely, the prior Brown Act rules that govern public meetings would be followed. On return from the summer break, Council may be meeting back in the Council chambers at City Hall following the more rigorous re gulations as outlined by the Brown Act. This would require public noticing of all locations that City Council members may be meeting from, and ensuring they are open to the public. In addition, the City Council may wish to review its own policies and procedures, to adjust for the lessons learned as a result of the adapted operations due to the pandemic. For example, the current City Council Procedures and Protocols Handbook limits City Council members to three meetings with remote participation annually. Staff and the public have also been impacted by the adjusted format as a result of the pandemic, increasing access through teleconferencing, reaching new segments of the community who were unable to physically visit City Hall as well as a broader depth of staff members present to facilitate the City Council’s deliberations and to share their expertise, when previously it may have been centralized to a smaller team. Upon review, a core question of which platform to operate with will be the crux of how staff will assist in adapting processes upon return after the Council summer break: 1) in person presence as the core platform, or 2) remote/teleconference as the core platform (for this the City has been using Zoom). The table below is a summary of three options staff has outlined to assist the Council in their deliberations to obtain feedback as staff continue s to plan for the future format of public meetings. Much of this discourse is focused on City Council meetings, and once that is discussed and tested further, staff will use that guidance to inform the format of Boards, Committees, and Commissions alike. The expectation is that by the first meeting on August 9, 2021, the Covid-19 restrictions will be lifted or minimal allowing for in person Council meetings. This outline does not address sundry items such as capacity limits as those remain unknown. SCENARIO 1 PRE COVID FORMAT SCENARIO 2 REMOTE PUBLIC COMMENT SCENARIO 3 HYBRID MODEL DESCRIPTION Council, Public, Staff, and others will participate in person only Council, Staff, and others will participate in person only. Public will have the option Majority of Council will participate in person with the option of remote participation in alignment City of Palo Alto Page 4 to provide comment in person or remotely with legislative requirements; Public, staff, and others may participate in person or virtually LOGISTICS Public meetings will convene as they were prior to the shelter in place order and using the current technology in council chambers. Public meetings will convene as they were prior to the shelter in place order using the current technology in council chambers, except that the public will have the option to provide comment remotely via teleconference only. Council meetings will convene on site but will be hosted on the Zoom platform. The experience for in person and remote participants will be similar allowing for all to see the same content displayed. Councilmember remote participation would be dependent on policies and procedures both as required by state regulations and the City’s operating guidelines. This is the most complex scenario and will take coordination and planning. BENEFITS • Current equipment and staffing needs are available and authorized to run the meetings • No additional cost • Current equipment and staffing needs are available and authorized to run the meetings • Minor additional cost to allow for public comment via teleconference would be necessary. • Meeting available on YouTube and MidPen simultaneously • Reduce travel costs as consultants, contractors, public can participate in person or remotely. • Improved video quality streaming directly to MidPen • Continued broader participation by staff, public, and others with the option to participate remotely • Similar experience for in person and remote participants CHALLENGES Many of the current benefits that have been Many of the current benefits that have been Adjustments to both equipment and staffing City of Palo Alto Page 5 realized from the past year of remote would not continue: • Public not allowed to participate remotely • Council, Public, Staff, others required to be on site • Only broadcast through MidPen realized from the past year of remote would not continue: • Council, Staff, others required to be on site • Managing in person and remote speakers • Only broadcast through Midpen would be necessary in order to support this model. • Budget for new equipment • Managing in person and remote public speakers • Additional resources required to manage remote callers • Additional staff required to operate the AV systems for the meeting REQUIREMENTS No new requirements In person would be the primary platform and adjustment to ensure teleconference participation of the public is available. A virtual platform such as Zoom will be the primary AV platform. • Purchasing of new AV equipment • Additional TV’s for public and council • Estimated interim equipment cost: $40,000 Pending State of California Legislation As discussed earlier, the Governor’s Executive Order No. N-29-20 suspends the Ralph M. Brown Act’s requirements for teleconferencing during the COVID-19 pandemic, provided that notice requirements are met. Unfortunately, those Executive Order only applies to the current health pandemic and does not sustain after the Governor’s Executive Order is lifted. There are some pieces of legislation currently being discussed in Sacramento that address changes in the Brown Act to allow for more flexibility than the existing Brown Act (non -Executive Order) allows for. The bills are summarized below. AB 339: This bill is in hearing on May 20, 2021. As amended, this bill would not apply to Palo Alto. Assembly Bill 339 (AB 339) would, as amended, until December 31, 2023, require all open and public meetings of a city council or a county board of supervisors that governs a jurisdiction containing at least 250,000 people to include an opportunity for members of the public to attend via a telephonic option and or an internet -based service option. The bill would require all open and public meetings to include an in-person public comment opportunity, except in specified circumstances during a declared state or local emergency. The b ill would require all meetings to provide the public with an opportunity to comment on proposed legislation in City of Palo Alto Page 6 person and remotely via a telephonic and or an internet -based service option, as provided. The bill also removed the language requirements from the legislation. AB 361: This bill was sent to the Senate Rules Committee on May 18, 2021. As amended, Assembly Bill 361 (AB 361), Open meetings: local agencies: teleconferences (Rivas) will provide additional flexibility for local city councils, boards, commissions, and other agencies to meet remotely via video and teleconference during a local emergency that makes meeting in person inadvisable, while still seeking to maintain high levels of public access and transparency. AB 361 will allow public agencies to meet remotely to continue providing services to the public without jeopardizing the safety of the public, local agency personnel, or board members. Local agencies will accommodate both internet video conferencing phone calls to ensure that the public can access these meetings with or without an internet connection. In the bill, if a specified state or local emergency is declared, a local city council would be allowed to meet via a videoconferencing platform and/or phone. The public would be able to participate through such online and telephonic platforms, too. AB 361 also allows for social distancing in person meetings if the type of emergency allows for that. SB 274: This bill was sent to Committee on May 13, 2021. No further update at this time. Senate Bill 274 (SB 274) would require a local agency with an internet website, or its designee, to email a copy of, or website link to, the agenda or a copy of all the documents constituting the agenda packet if the person requests that the items be delivered by email. If a local agency determines it to be technologically infeasible to send a copy of the documents or a link to a website that contains the documents by email or by other electronic means, the bill would require the legislative body or its designee to send by mail a copy of the agenda or a website link to the agenda and to mail a copy of all other documents constituting the agenda packet, as specified. By requiring local agencies to comply with these provisions, this bill would impose a state-mandated local program. AB 703: This bill will not be moving further this legislative year. The City has supported this bill. Assembly Bill 730 (AB 703) would remove the notice requirements particular to teleconferencing and would revise the requirements of the act to allow for teleconferencing subject to existing provisions regarding the posting of notice of an agenda, provided that the public is allowed to observe the meeting and address the legislative body directly both in person and remotely via a call-in option or internet-based service option, and that a quorum of members participate in person from a singular physical location clearly identified on the agenda that is open to the public and situated with in the jurisdiction. The bill would require that, in each instance in which notice of the time of the teleconferenced meeting is otherwise given or the agenda for the meeting is otherwise posted, the local agency also give notice of the means by which members of the public may observe the meeting and offer public comment and that the legislative body have and implement a procedure for receiving and swiftly resolving requests for reasonable accommodation for individuals with City of Palo Alto Page 7 disabilities, consistent with the federal Americans with Disabilities Act, as provided. This bill would declare the Legislature’s intent, consistent with the Governor’s Executive Order No. N-29-20, to improve and enhance public access to local agency meetings into the future, and considering the digital age, by allowing broader access through teleconferencing options. Resource Impact Depending on the Council feedback, staff expects costs for both the equipment and audio- visual consultant expertise for the implementation and management of a revised set-up for public meetings. In addition, as outlined in the Discussion section, there are expected staffing implications depending on the scenario outlined. Staff is currently anticipating an interim solution to be implemented to ensure continuity of operations and compliance with the California Brown Act requirements. However, once firmer information is available, staff anticipates re-evaluating the previously planned City Council Chambers Upgrade project in light of the new environment, with significant adjustments expected to include considering a revised format for engagement, both in the physical environment as well as audio visual (AV). Stakeholder Engagement This item has been coordinated throughout the City Departments such as the City Clerk’s Office, City Attorney’s Office, and Public Works Department. Staff has also considered the interests of the public, councilmembers, and staff. Environmental Review As a study session, this item is not a project for the purposes of the Cali fornia Environmental Quality Act. CITY OF PALO ALTO OFFICE OF THE CITY CLERK June 1, 2021 The Honorable City Council Attention: Finance Committee Palo Alto, California Approval of Action Minutes for the May 17 and 18, 2021 City Council Meetings Staff is requesting Council review and approve the attached Action Minutes. ATTACHMENTS: • Attachment A: 05-17-21 CCM DRAFT Action Minutes (DOCX) • Attachment B: 05-18-21 CCM DRAFT Action Minutes (PDF) Department Head: Beth Minor, City Clerk Page 2 CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 7 Special Meeting May 17, 2021 The City Council of the City of Palo Alto met on this date in virtual teleconference at 5:01 P.M. Participating Remotely: Burt, Cormack, DuBois, Filseth, Kou, Stone, Tanaka Absent: Special Orders of the Day 1. Presentation by La Comida. NO ACTION TAKEN Study Session 2. Presentation by Polco/NRC of the City of Palo Alto Community Survey Report Results. NO ACTION TAKEN Agenda Changes, Additions and Deletions Mayor DuBois announced Agenda Item Number 12, “Closed Session- Conference With Labor Negotiators…” has been removed from the agenda and will be heard at a later date. Minutes Approval 3. Approval of Action Minutes for the April 26 and May 3, 2021 City Council Meetings. MOTION: Council Member Kou moved, seconded by Vice Mayor Burt to approve the Action Minutes for the April 26 and May 3, 2021 City Council Meetings. MOTION PASSED: 7-0 Consent Calendar Council Member Tanaka registered a no vote on Agenda Item Number 5 and 8. DRAFT ACTION MINUTES Page 2 of 7 (Sp.) City Council Meeting Draft Action Minutes: 05/17/2021 MOTION: Mayor DuBois moved, seconded by Council Member Cormack to approve Agenda Item Numbers 4-8. 4. Approval of Amendment Number 4 to Contract Number C18172676 With Dixon Resources to Extend the Term to June 2022 With no Additional Costs for the Downtown Parking Study. 5. Approval of a Professional Services Agreement With CAD Masters, Inc. for Ongoing Support, Maintenance, Development, and Enhancement of the Geospatial Design and Asset Management System for the Utilities Department in an Amount of $390,000 per Year, for a Total No t-to- Exceed Amount of $1,950,000 for up to Five Years. 6. Resolution 9955 Entitled, “Resolution of the Council of the City of Palo Alto Making Required Findings in Support of the City's Grant Application for the State Transportation Development Act Article 3 Funds to Update the City's Bicycle and Pedestrian Transportation Plan .” 7. Adoption of a: 1) Resolution 9956 Entitled, “Resolution of the Council of the City of Palo Alto Waiving the Business Registration Fee for Fiscal Year 2022, if Completed on Time, and Extending the due Date to July 15, 2021”; 2) Resolution 9957 Entitled, “Resolution of the Council of the City of Palo Alto Declaring an Intention to Temporarily Suspend the Levy of Assessment Against Businesses Within the Downtown Business Improvement District (BID) for Fiscal Year 2022, and Setting a Public Hearing on the Proposed Temporary Suspension for June 1, 2021 ”; and 3) Approval of the Reimbursement of any Business Registration Fees and BID Assessments Already Paid in 2021. 8. SECOND READING: Finance Committee Recommends City Council Approve Park, Community Center, and Library Development Impact Fee Justification Study; Adjustments to Park, Community Center, and Library Development Impact Fees; Ordinance 5521 Entitled, “Ordinance of the Council of the City of Palo Alto Updating Park Land In Lieu fee; and Direct Staff to Implement the Impact Fee Updates With the Fiscal Year 2022 Budget (Continued From March 8, 2021) (FIRST READING: April 12, 2021 PASSED: 6-1 Tanaka no).” MOTION ITEMS 4, 6, 7 PASSED: 7-0 MOTION ITEMS 5 and 8 PASSED: 6-1 Tanaka no Council took a break at 7:07 P.M. and returned at 7:22 P.M. DRAFT ACTION MINUTES Page 3 of 7 (Sp.) City Council Meeting Draft Action Minutes: 05/17/2021 Action Items 9. PUBLIC HEARING: Resolution 9958 Entitled, “Resolution of the Council of the City of Palo Alto Confirming the Weed Abatement Report and Ordering the Cost of Abatement to be a Special Assessment on the Respective Properties Described Therein.” Public Hearing opened at 7:33 P.M. Public Hearing closed at 7:36 P.M. MOTION: Mayor DuBois moved, seconded by Vice Mayor Burt to adopt the Resolution confirming the weed abatement report and ordering abatement costs to be a special assessment on the properties specified in the report. MOTION PASSED: 7-0 10. Approval of a Construction Contract With C. Overaa & Co. in the Total Amount of $15,123,900, and Three Amendments to Existing Agreements With: 1) Stanford University, 2) East Palo Alto Sanitary District, and 3) Mountain View and Los Altos, for the Primary Sedimentation Tanks Rehabilitation and Equipment Room Electrical Upgrade Project (WQ-14003) at the Regional Water Quality Control Plant; Resolution 9959 Entitled, “Resolution of the Council of the City of Palo Alto Revising and Superseding Resolution Number 9667, Establishing Pledged Sources of Revenue for Repayment of State Revolving Fund Loan”; and Resolution 9960 Entitled, “Resolution of the Council of the City of Palo Alto Authorizing an Installment Sale Agreement With the California State Water Resources Control Board for Financing the Design and Construction of the Primary Sedimentation Tanks Rehabilitation and Equipment Room Electrical Upgrade Project.” MOTION: Council Member Cormack moved, seconded by Mayor DuBois to: A. Approve and authorize the City Manager or his designee to execute the contract with C. Overaa & Co., in the amount of $13,749,000 for the Primary Sedimentation Tanks Rehabilitation and Equipment Room Electrical Upgrade Project, funded in Wastewater Treatment Enterprise Fund Capital Improvement Program, Project WQ14003, at the Regional Water Quality Control Plant; B. Authorize the City Manager or his designee to execute one or more change orders to the contract with C. Overaa & Co. for related, additional but unforeseen work that may develop during the project, DRAFT ACTION MINUTES Page 4 of 7 (Sp.) City Council Meeting Draft Action Minutes: 05/17/2021 the total value of which shall not exceed $1,374,900 or 10 percent of the contract amount, for a total not-to-exceed amount of $15,123,900; C. Approve the adoption of a Resolution authorizing an Installment Sale Agreement with the California State Water Resource Control Board (SWRCB) in connection with the financing of the design and construction of the Primary Sedimentation Tanks Rehabilitation and Equipment Room Electrical Upgrade Project; D. Approve the adoption of a Resolution revising and superseding Resolution Number 9667 establishing pledged sources of revenue for repayment of funding pursuant to the federal Clean Water Act Amendments; and E. Approve Amendment Number 7 to the agreement between Palo Alto and Stanford University; the Second Amended and Restated Agreement between Palo Alto and the East Palo Alto Sanitary District; and Addendum Number 10 to the agreement between Palo Alto, Mountain View, and Los Altos. MOTION PASSED: 7-0 11. Continued Discussion of the Fiscal Year 2022 Budget. Council took a break at 9:22 P.M. and returned at 9:28 P.M. MOTION: Mayor DuBois moved, seconded by Council Member Kou to direct the Finance Committee and City Staff to adopt the seven items of consideration and the recommended revised balancing strategy with the following modifications: A. Adjust use of ARPA funds to 60 percent in Year 1 and 40 percent in Year 2; B. Add in the following: i. $260,000 for outreach and hotdog shows for Children’s Theatre; ii. $50,000 YCI matching County funds; and iii. $75,000 to Restore Council contingency Budget to $100,00 total. C. Reduce the TMA budget to $150,000; DRAFT ACTION MINUTES Page 5 of 7 (Sp.) City Council Meeting Draft Action Minutes: 05/17/2021 D. Direct the Finance Committee to look into adjusting RPP Fees on Municipal Fee Schedule to be 10 percent higher than garage fees, and consider appropriate level of fees (2020 vs 2021); E. Return with long range CIP plan in the fall of 2021, for the CIP 2023 and beyond to adjust for changes in budget, including Phase 4 Charleston Arastradero; and F. Direct the Finance Committee to find a way to fund the Roth building through the combination of impact fees and SUMC funds. AMENDMENT: Council Member Filseth moved, seconded by Council Member Cormack to adjust use of ARPA funds to 50 percent in Year 1 and 50 percent in Year 2. AMENDMENT FAILED: 3-4 Burt, DuBois, Kou, Stone no AMENDMENT: Council Member Filseth moved, seconded by Council Member Cormack to add to the Motion Part F “contingent on federal funding.” AMENDMENT FAILED: 3-4 Burt, DuBois, Kou, Stone no INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion Part B “$150,000 for HSRAP Funding and $30,000 for Twilight Concert Series. AMENDMENT: Council Member Tanaka moved, seconded by Council Member XX to direct the Finance Committee to look at potential savings and ways to streamline the span of control for the City. AMENDMENT FAILED DUE TO THE LACK OF A SECOND AMENDMENT: Council Member Stone moved, seconded by Vice Mayor Burt to remove, “..including Phase 4 Charleston Arastradero” from the Motion, Part E.; and add “move forward with Phase 4 of the Charleston/Arastradero Project using funding Option 1.” AMENDMENT PASSED: 5-2 Cormack, Kou no MOTION AS AMENDED: Mayor DuBois moved, seconded by Council Member Kou to direct the Finance Committee and City Staff to adopt the seven items of consideration and the recommended revised balancing strategy with the following modifications: A. Adjust use of ARPA funds to 60 percent in Year 1 and 40 percent in Year 2; DRAFT ACTION MINUTES Page 6 of 7 (Sp.) City Council Meeting Draft Action Minutes: 05/17/2021 B. Add in the following: i. $260,000 for outreach and hotdog shows for Children’s Theatre; ii. $50,000 YCI matching County funds; iii. $75,000 to Restore Council contingency Budget to $100,000 total; iv. $150,000 for HSRAP Funding; and v. $30,000 for Twilight Concert Series. C. Reduce the TMA budget to $150,000; D. Direct the Finance Committee to look into adjusting RPP Fees on the Municipal Fee Schedule to be 10% higher than garage fees, and consider appropriate level of fees (2020 vs 2021); E. Return with long range CIP plan in the fall of 2021, for the CIP 2023 and beyond to adjust for changes in budget; F. Direct the Finance Committee to find a way to fund the Roth building through the combination of impact fees and SUMC funds; and G. Move forward with Phase 4 of the Charleston/Arastradero Project using funding Option 1. MOTION SPLIT FOR THE PURPOSE OF VOTING MOTION PARTS A, C-G PASSED: 4-3 Cormack, Filseth, Tanaka no MOTION PART B PASSED: 5-2 Filseth, Tanaka no Closed Session 12. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his designees Pursuant to Merit System Rules and Regulations (Ed Shikada, Rumi Portillo, Molly Stump, Kiely Nose, Bob Jonsen, Geo Blackshire, Dean Batchelor, Nick Raisch) Employee Organizations: Service Employees International Union, (SEIU) Local 521; Service Employees International Union, (SEIU) Local 521, Hourly Unit; Palo Alto Police Officers Association (PAPOA); Palo Alto Fire Chiefs’ Association (FCA) and Employee Organization: International Association of Fire Fighters (IAFF), Local 1319; Palo Alto Police Manager’s Association (PAPMA); Utilities DRAFT ACTION MINUTES Page 7 of 7 (Sp.) City Council Meeting Draft Action Minutes: 05/17/2021 Management and Professional Association of Palo Alto (UMPAPA); Authority: Government Code Section 54957.6(a). Adjournment: The meeting was adjourned at 11:44 P.M. ATTEST: APPROVED: ____________________ ____________________ City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC) 2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section 2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City’s website. CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 3 Special Meeting May 18, 2021 The City Council of the City of Palo Alto met on this date in virtual teleconference at 5:01 P.M. Participating Remotely: Burt, Cormack, DuBois, Filseth, Kou, Stone; Tanaka arrived at 7:00 P.M. Absent: Agenda Changes, Additions and Deletions None Study Session 1. 955 Alma St [21PLN-00013]: Request for Prescreening of a Proposal to Rezone the Subject Site From RT-35 to Planned Community/Planned Home Zoning (PHZ) and Redevelop the Site With a new 4-Story Mixed- use Development That Includes 36 Residential Studios, 6,348 Square Feet of Office Space, and a Below Grade Parking Facility. Environmental Assessment: Not a Project; any Subsequent Formal Application Would be Subject to California Environmental Quality Act (CEQA) Review. Zoning District: RT-35 (Residential Transition District) South of Forest Avenue (SOFA) II Coordinated Area Plan (CAP). NO ACTION TAKEN 2. 2239 Wellesley (21PLN-00045): Request by Cato Investments, LLC for Prescreening of Their Proposal to Rezone the Properties at 2239 and 2241 Wellesley from R-1 (Single Family Residential) to Planned Community/Planned Home Zoning (PHZ) and to Redevelop the Site With a 24-Unit Multi-family Development. Environmental Assessment: Not a Project; any Subsequent Formal Application Would be Subject to California Environmental Review Act (CEQA) Review. NO ACTION TAKEN Council took a break at 7:26 P.M. and returned at 7:37 P.M. DRAFT ACTION MINUTES Page 2 of 3 Sp. City Council Meeting Draft Action Minutes: 05/18/2021 Consent Calendar MOTION: Mayor DuBois moved, seconded by Council Member Cormack to approve Agenda Item Number 3. 3. Adoption of Ordinances Responding to State Housing Bills Regarding Density Bonus and Affordable Housing. Environmental Assessment: Exempt Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3). MOTION PASSED: 7-0 Action Items 4. PUBLIC HEARING / QUASI-JUDICIAL: 181 Addison Avenue [20PLN-00300] Request for Review of a Preliminary Parcel Map With Exception and Variance to Subdivide one Existing lot Into two Parcels With Less Than the Minimum 60 Foot Frontage. Environmental Assessment: Consistent With Previously Adopted Environmental Impact Report (EIR) for the City's Comprehensive Plan. Zoning District: R-2 (Two Family Residential) Within the South of Forest Avenue (SOFA) II Coordinated Area Plan (CAP). Public Hearing opened at 7:46 P.M. Public Hearing closed at 7:49 P.M. MOTION: Council Member Kou moved, seconded by Council Member Stone to adopt a Record of Land Use (RLUA) approving the request for a Preliminary Parcel Map with Exception and Variance based on findings and subject to conditions of approval. MOTION PASSED: 7-0 5. Direction to Staff Regarding 2023-31 Regional Housing Needs Allocation Appeal. MOTION: Mayor DuBois moved, seconded by Vice Mayor Burt to direct Staff to prepare and file an appeal of the City’s Regional Housing Needs Allocation, based on Staff’s identified technical errors and elements from the January 21, 2021 letter sent to the Association of Bay Area Governments (ABAG) Executive Board Members. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER “…with the letter read, approved, and signed by the Mayor”. DRAFT ACTION MINUTES Page 3 of 3 Sp. City Council Meeting Draft Action Minutes: 05/18/2021 MOTION AS AMENDED: Mayor DuBois moved, seconded by Vice Mayor Burt to direct Staff to prepare and file an appeal of the City’s Regional Housing Needs Allocation, based on Staff’s identified technical errors and elements from the January 21, 2021 letter sent to the Association of Bay Area Governments (ABAG) Executive Board Members, with the letter read, approved, and signed by the Mayor. MOTION AS AMENDED PASSED: 5-2 Cormack, Tanaka no Adjournment: The meeting was adjourned at 9:40 P.M. ATTEST: APPROVED: ____________________ ____________________ City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC) 2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section 2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City’s website. CITY OF PALO ALTO OFFICE OF THE CITY CLERK June 1, 2021 The Honorable City Council Palo Alto, California SECOND READING: Adoption of Ordinances Responding to State Housing Bills Regarding Density Bonus and Affordable Housing. Environmental Assessment: Exempt Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3) (FIRST READING: May 18, 2021 PASSED: 7-0) This was heard by the City Council on May 18, 2021 for a first reading. No changes were made to the Ordinance; it is now before you for a second reading. ATTACHMENTS: • Attachment A: Housing Ordinances (PDF) Department Head: Beth Minor, City Clerk Page 2 *NOT YET ADOPTED* 1 0160038_20210506_ay Ordinance No. ____ Ordinance of the Council of the City of Palo Alto Amending Chapter 18.15 (Residential Density Bonus) of Title 18 (Zoning) of the Palo Alto Municipal Code (PAMC) to Update the Density Bonus Program in Accordance with AB 2345. The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and declarations. The City Council finds and declares as follows: A. On September 28, 2020, the Governor approved AB 2345, which substantially revised requirements for the existing Density Bonus Law (Government Code Section 65400 et seq.), which requires a city to provide a developer that proposes a housing development within the jurisdictional boundaries of that city with a density bonus and other incentives or concessions for the production of lower income housing units, or for the donation of land within the development, if the developer agrees to construct a specified percentage of units for very low income, low-income, or moderate-income households or qualifying residents and meets other requirements. B. In previous years, the Governor also approved other revisions to the Density Bonus Law, including AB 1934, SB 1227, AB 2372, and AB 2753. C. The City Council is therefore updating the Density Bonus Chapter of the Zoning Code, Chapter 18.15 in Title 18 of the Palo Alto Municipal Code, to comply with these revisions. SECTION 2. Chapter 18.15 (Density Bonus) of Title 18 (Zoning) is hereby amended as follows: 18.15 RESIDENTIAL DENSITY BONUS [. . .] 18.15.010 Purpose [. . .] 18.15.020 Definitions Whenever the following terms are used in this chapter, they shall have the meaning established by this section: [. . .] *NOT YET ADOPTED* 2 0160038_20210506_ay (s) “Replace” means either of the following: (i) If any dwelling units described in Section 18.15.030(h)(i) are occupied on the date that the application is submitted to the City, the proposed housing development shall provide at least the same number of units of equivalent size to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. For unoccupied dwelling units described in Section 18.15.030(h)(i) in a development with occupied units, the proposed housing development shall provide units of equivalent size or type, or both, to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category in the same proportion of affordability as the occupied units. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. If the replacement units will be rental dwelling units, theses units shall be subject to a recorded affordability restriction for at least 55 years. For purposes of this subsection (s) of Section 18.15.020, “equivalent size” means that the replacement units contain at least the same total number of bedrooms as the units being replaced. (ii) If all dwelling units described in Section 18.15.030(h)(i) have been vacated or demolished within the five-year period preceding the application, the proposed housing development shall provide at least the same number of units of equivalent size, as existed at the highpoint of those units in the five-year period preceding the application to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those persons and families in occupancy at that time, if known. If the incomes of the persons and families in occupancy at the highpoint is not known, then one-half of the required units shall be made available at affordable rent or affordable housing cost to, and occupied by, very low income persons and families and one-half of the required units shall be made available for rent at affordable housing costs to, and occupied by, low-income persons and families. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years. [. . .] (v) “Lower income student” means a student who has a household income and asset level that does not exceed the level for Cal Grant A or Cal Grant B award recipients as set forth in Section 69432.7(k) of the Education Code. The eligibility of a unit for lower income students under this section shall be verified by an affidavit, award letter, or letter of eligibility provided by the institution of higher education in which the student is enrolled or by the California Student Aid Commission that the student receives or is *NOT YET ADOPTED* 3 0160038_20210506_ay eligible for financial aid, including an institutional grant or fee waiver from the college or university, the California Student Aid Commission, or the federal government. 18.15.030 Density Bonuses This section describes the density bonuses that will be provided, at the request of an applicant, when that applicant provides restricted affordable units as described below. (a) The city shall grant a 20 twenty percent (20%) density bonus when an applicant for a development of five (5) or more dwelling units seeks and agrees to construct at least any one of the following in accordance with the requirements of this Section and Government Code Section 65915: (i) At least 10 ten percent (10%) of the total dwelling units of the development as restricted affordable units affordable to lower income households. Between ten and twenty percent (10-20%), For each one percent (1%) increase in the percentage of restricted lower income units, a development will receive an additional one and one- half percent (1.5%) density bonus up to thirty-five percent (35%) of the maximum residential density. For each one percent (1%) increase in the percentage of restricted lower income units exceeding twenty percent (20%), a development will receive an additional three and three-quarters percent (3.75%) density bonus up to fifty percent (50%) of the maximum residential density; or (ii) At least five percent (5%) of the total dwelling units of the development as restricted affordable units affordable to very low income households. Between five and eleven percent (5-11%), for For each one percent (1%) increase in the percentage of restricted very low income units, a development will receive an additional two and one- half percent (2.5%) density bonus up to thirty-five percent (35%) of the maximum residential density. For each one percent (1%) increase in the percentage of restricted very low income units exceeding eleven percent (11%), a development will receive an additional three and three-quarters percent (3.75%) density bonus up to fifty percent (50%) of the maximum residential density; or [. . .] (b) The city shall grant a five percent (5%) density bonus when an applicant for a development of five (5) or more additional dwelling units seeks and agrees to construct a development, in accordance with the requirements of this Section and Government Code Section 65915, in which at least 10 percent (10%) of the total dwelling units in a common interest development as defined in California Civil Code Section 4100 for of a housing development are sold to persons and families of low or moderate income households, provided that all dwelling units in the development are offered to the public for purchase. For each one percent (1%) increase in the percentage of restricted moderate income units between ten and forty percent (10-40%), a development will *NOT YET ADOPTED* 4 0160038_20210506_ay receive an additional one percent (1%) density bonus up to thirty-five percent (35%) of the maximum residential density. For each one percent (1%) increase in the percentage of total dwelling units restricted for moderate income households exceeding forty percent (40%), a development will receive an additional three and three-quarters percent (3.75%) density bonus up to fifty percent (50%) of the maximum residential density. (c) Reserved. The city shall grant a thirty-five percent (35%) density bonus when an applicant for a student housing development of five (5) or more additional dwelling units seeks and agrees to construct in accordance with the requirements of this Section and Government Code Section 65915: (i) At least twenty percent (20%) of the total dwelling units will be restricted for lower income students. (ii) For purposes of calculating a density bonus granted pursuant to this subparagraph, the term “unit” as used in this subparagraph means one rental bed and its pro rata share of the associated common area facilities. The units described in this subparagraph shall be subject to an affordability restriction of 55 years. (iii) All units will be used exclusively for undergraduate, graduate, or professional students enrolled full time at an institution of higher education accredited by the Western Association of Schools and Colleges or the Accrediting Commission for Community and Junior Colleges. (iv) The applicant submits evidence that the applicant entered into an operating agreement or master lease with one or more institutions of higher education for the institution(s) to occupy all units of the student housing development with students from that institution(s). (v) The rent provided in the applicable units of the development for lower income students shall be calculated at thirty percent (30%) of sixty-five percent (65%) of the area median income for Santa Clara County for a single-room occupancy unit type. (vi) The applicant will provide priority for the applicable affordable units for lower income students experiencing homelessness. A homeless service provider, as defined in paragraph (3) of subdivision (e) of Section 103577 of the Health and Safety Code, or institution of higher education that has knowledge of a person’s homeless status may verify a person’s status as homeless for purposes of this subclause. (d) The city shall grant a density bonus to a development if the following criteria apply: one hundred percent (100%) of all units in the development, including total units and density bonus units, but exclusive of manager’s unit or units, are for lower income households, as defined by Section 50079.5 of the Health and Safety Code, except that *NOT YET ADOPTED* 5 0160038_20210506_ay twenty percent (20%) of the units in the development, including total units and density bonus units, may be for moderate-income households, as defined in Section 50053 of the Health and Safety Code. For rental units, rents shall be restricted as set forth in Government Code section 65915(c)(1)(B)(ii). (i) Except as otherwise provided in clause (ii), the city will grant a density bonus of eighty percent (80%) of the number of units for lower income households. (ii) If the development is located within one-half mile of a major transit stop, the city will not impose any maximum controls on density. If no maximum control on density is imposed pursuant to this subparagraph, then the housing development will be eligible for four concessions or incentives, but not eligible for additional waivers or modifications to development standards, notwithstanding Section 18.15.060, except as the city may allow. (d)(e) When calculating the number of permitted density bonus units, any fractions of units shall be rounded to the next highest number. An applicant may elect to receive a density bonus that is less than the amount permitted by this section; however, the city shall not be required to similarly reduce the number of restricted affordable units required to be dedicated pursuant to this section and Government Code Section 65915(b). (e)(f) Each development is entitled to only one density bonus, which shall be selected by the applicant based on the percentage of very low restricted affordable units, lower income restricted affordable units, or moderate income restricted affordable units, or the development’s status as a senior citizen housing development or qualifying mobilehome park, or the development's provision of restricted affordable units for transitional foster youth, disabled veterans or homeless persons. Density bonuses from more than one category may not be combined. Except as provided for in 18.15.030(d), In in no case shall a development be entitled to a density bonus of more than thirty-five fifty percent (35%) (50%). (f)(g) The density bonus units shall not be included when determining the number of restricted affordable units required to qualify for a density bonus. When calculating the required number of restricted affordable units, any resulting decimal or fraction shall be rounded to the next larger integer. (g)(h) Any restricted affordable unit provided pursuant to the city’s below market rate housing program shall be included when determining the number of restricted affordable units required to qualify for a density bonus or other entitlement under this chapter. However, the payment of a housing impact or in lieu fee shall not qualify for a density bonus or other entitlement under this chapter. *NOT YET ADOPTED* 6 0160038_20210506_ay (h)(i) An applicant (or project) shall be ineligible for a density bonus or any other incentives or concessions under this chapter if the housing development is proposed on any property that includes a parcel or parcels on which rental dwelling units are or, if the dwelling units have been vacated or demolished in the five-year period preceding the application, have been subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; subject to any other form of rent or price control through the City’s valid exercise of its police power; or occupied by lower or very low income households, unless the proposed housing development replaces those units, and either of the following applies: (i) The proposed housing development, inclusive of the units replaced pursuant to this paragrpah paragraph, contains affordable units at the percentages set forth in Section 18.15.030. (ii) Each unit in the development, exclusive of a manager’s unit or units, is affordable to, and occupied by, either a lower or very low income household. (i)(j) Certain other types of development activities are specifically eligible for a density bonus pursuant to state law: (i) A development may be eligible for a density bonus in return for land donation pursuant to the requirements set forth in Government Code Section 65915(g). (ii) A condominium conversion may be eligible for a density bonus or concession pursuant to the requirements set forth in Government Code Section 65915.5. (iii) An applicant for a commercial development who has entered into an agreement for partnered housing may be eligible for a density bonus pursuant to the requirements set forth in Government Code Section 65915.7. (j)(k) As provided in Section 18.15.080(c), development proposed with rezoning to the Planned Community zone district are entitled to densities approved as part of the rezoning and shall not be entitled to a density bonus in addition to the units entitled by the rezone. (k)(l) Notwithstanding any provision of this chapter, all developments must satisfy all applicable requirements of the city’s Below Market Rate Housing Program in Chapter 16.65, which may impose requirements for restricted affordable units in addition to those required to receive a density bonus or concessions. Table 1 summarizes the density bonus provisions described in this Section. // *NOT YET ADOPTED* 7 0160038_20210506_ay Table 1 Density Bonus Summary Table Restricted Affordable Units (RAUs) or Category Minimum Percentage of Restricted Affordable Units RAUs Percentage of Density Bonus Granted Additional Bonus for Each 1% Increase in Restricted Affordable Units RAUs Percentage of RAUs Required for 35% Density Bonus Percentage of Restricted Units RAUs Required for Maximum 35% 50% Density Bonus Very Low Income 5% 20% 2.50% (3.75% bonus for increases above 11% RAU) 11% 11% 15% Lower Income 10% 20% 1.50% (3.75% bonus for increases above 20% RAU) 20% 20% 24% Moderate Income 10% 5% 1% (3.75% bonus for increases above 40% RAU) 40% 40% 44% Lower Income Student Housing 20% 35% ------ ------ ------ Senior Citizen Housing 100% 20% ------ ------ ------ Qualifying Mobile Park 100% 20% ------ ------ ------ 100% Affordable Units 100% 80% (or no maximum density) ------ ------ ------ Note: A density bonus may be selected from only one category up to a maximum of 35% of the Maximum Residential Density. 18.15.040 Development Standards for Affordable Units [. . .] 18.15.050 Development Concessions and Incentives This section includes provisions for providing concessions or incentives pursuant to Government Code Section 65915. (a) By right parking incentives. Upon request by the applicant, a development that is eligible for a density bonus may provide parking as provided in this subsection (a), *NOT YET ADOPTED* 8 0160038_20210506_ay consistent with Government Code Section 65915(p), inclusive of handicapped and guest parking for persons with a disability and guests: (i) Zero to one bedroom unit: one on-site parking space; (ii) Two to three bedroom unit: two one and one-half on-site parking spaces; (iii) Four or more bedroom unit: two and one-half parking spaces. If the total number of spaces required results in a fractional number, it shall be rounded up to the next whole number. For purposes of this subsection, this parking may be provided through tandem parking or uncovered parking, but not through on-street parking. (b) Additional parking incentives for transit oriented project. (i) For purposes of this subdivision, a development shall have unobstructed access to a major transit stop if a resident is able to access the major transit stop without encountering natural or constructed impediments. For purposes of this subdivision, “natural or constructed impediments” includes, but is not limited to, freeways, rivers, mountains, and bodies of water, but does not include residential structures, shopping centers, parking lots, or rails used for transit. (A) Notwithstanding paragraph subdivision (a) above, if a development includes the maximum percentage at least twenty percent (20%) of low-income or at least eleven percent (11%) of very low income units provided for in section 18.15.030(b)(a)(i) or (ii), and is located within one-half mile of a major transit stop, as defined in subdivision (o) of Section 65915 of the Government Code subdivision (b) of Section 21155 of the Public Resources Code, and there is unobstructed access to the major transit stop from the development, then, upon request of the applicant, the city shall not impose a vehicular parking ratio, inclusive of handicapped and guest parking for persons with a disability and guests, that exceeds 0.5 spaces per bedroom unit. For purposes of this subdivision, a development shall have unobstructed access to a major transit stop if a request is able to access the major transit stop without encountering natural or constructed impediments. (ii) Notwithstanding paragraph subdivision (a) above, if a development consists solely of rental units, exclusive of a manager’s unit, with an affordable housing cost to lower income families, as provided in Section 50052.5 of the Health and Safety Code, then, upon the request of the applicant, the city shall not impose a vehicular parking standards if the development meets one of the following criteria ratio, inclusive of handicapped and guest parking, that exceeds the following ratios: *NOT YET ADOPTED* 9 0160038_20210506_ay (A) If the The development is located within one-half mile of a major transit stop, as defined in subdivision (o) of Section 65915 of the Government Code subdivision (b) of Section 21155 of the Public Resources Code, and there is unobstructed access to the major transit stop from the development. (B) If the The development is a for-rent housing development for individuals who are 62 years of age or older that complies with Sections 51.2 and 51.3 of the Civil Code, the ratio shall not exceed 0.5 spaces per unit. The and the development shall have has either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day. (C) If the The development is either a special needs housing development, as defined in Section 51312 of the Health and Safety Code, or a supportive housing development, as defined in Section 50675.14 of the Health and Safety Code. the ratio shall not exceed 0.3 spaces per unit. The development shall have A development that is a special needs housing development must have either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day. (iii) Notwithstanding paragraphs (i) and (ii) (b)(i), (b)(ii)(A), and (b)(ii)(B), the city may impose a higher vehicular parking ratio not to exceed the ratio described in paragraph subdivision (a) if the city has conducted an area wide or citywide parking study in compliance with Government Code Section 65915(p)(7)(8). (c) Other incentives and concessions. A development is eligible for other concessions or incentives as follows: (i) One concession or incentive for a development that makes at least ten percent (10%) of the total dwelling units affordable to lower income households; or at least five percent (5%) of the total dwelling units affordable to very low income households; or at least ten percent (10%) of the total dwelling units affordable to moderate income households in a common interest development in which the units are for sale; or at least twenty percent (20%) of the total units in a student housing development for low income students, as provided for in 18.15.030(c). (ii) Two concessions or incentives for a development that makes at least twenty seventeen percent (20%)(17%) of the total dwelling units affordable to lower income households; or at least ten percent (10%) of the total dwelling units affordable to very low income households; or at least twenty percent (20%) of the total dwelling units affordable to moderate income households in a common interest development in which the units are for sale. (iii) Three concessions or incentives for a development that makes at least thirty twenty-four percent (30%)(24%) of the total dwelling units affordable to lower income *NOT YET ADOPTED* 10 0160038_20210506_ay households; or at least fifteen percent (15%) of the total dwelling units affordable to very low income households, or at least thirty percent (30%) of the total dwelling units affordable to moderate income households in a common interest development in which the units are for sale. (iv) Four concessions or incentives for a development that provides one hundred percent (100%) of the total units, exclusive of a manager’s unit or units, are for lower income households, as described in Section 18.15.030, subdivision (d). Such development may additionally receive a height increase of three stories or thirty-three (33) feet. Table 2 summarizes the provisions of Concessions or Incentives described in subsection (a). Table 2 Concessions and Incentives Summary Table Target Group Restricted Affordable Units Very Low Income 5% 10% 15% Lower Income 10% 20% 17% 30% 24% Moderate Income (Common Interest Development Applicable to For-Sale Units Only) 10% 20% 30% Lower Income Student Housing 20% --- --- Maximum Incentive(s)/Concession(s) 1 2 3 Notes: 1. Concessions or incentives may be selected from only one category (very low, lower, or moderate, low income student development) 2. No concessions or incentives are available for land donation, or for senior citizen housing developments and qualifying mobilehome parks that do not contain restricted affordable units. 3. In a student development, a “unit” is defined according to 18.15.030(c)(ii). [. . .] (g) Nothing in this chapter shall be construed to require the provision of direct financial concessions for the development, including the provision of publicly owned land by the city or the waiver of fees or dedication requirements. 18.15.060 Waiver/Modification of Development Standards An applicant may apply for a waiver or modification of development standards that will have the effect of physically precluding the construction of a development at the densities or with the concessions or incentives permitted by this chapter. The developer *NOT YET ADOPTED* 11 0160038_20210506_ay must demonstrate that development standards that are requested to be waived or modified will have the effect of physically precluding the construction of a development meeting the criteria of subsection (a) of Section 18.15.030 at the densities or with the concessions or incentives permitted by this chapter. A development that receives a waiver from any maximum controls on density pursuant to Section 18.15.030(d)(2) shall not be eligible for waivers or modifications to development standards pursuant to this Section. 18.15.070 Child Care Facilities [. . .] 18.15.080 Application Requirements An Application for a density bonus, incentive, concession, waiver, modification or revised parking standard shall be made as follows: (a) An All applications for a density bonus, incentive, concession, waiver, modification or revised parking standard shall be submitted with the first application for a discretionary permit for a development and shall be processed concurrently with those discretionary permits. The application shall be on a form prescribed by the city and shall include the following information: (i) A brief description of the proposed development, including the total number of dwelling units, restricted affordable units, and density bonus units proposed. (ii) The zoning and comprehensive plan designations and assessor’s parcel number(s) of the project site, and a description of any density bonus, concession or incentive, waiver or modification, or revised parking standard requested (iii) A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveway and parking layout. (iv) Site plan showing location of market-rate units, restricted affordable units, and density bonus units within the proposed development; (v) level of affordability of the restricted affordable units and proposed method to ensure affordability; (b) If a concession or incentive is requested, the following information must be included in the application: (iv)(i) If a concession or incentive is requested, a A brief explanation as to the actual cost reduction achieved through the concession or incentive. *NOT YET ADOPTED* 12 0160038_20210506_ay (ii) For concessions and incentives that are not included within the menu of incentives/concessions set forth in subsection (c) of Section 18.15.050, the application requires the submittal of the project proforma or other comparable documentation (referred to herein as the “proforma information”) to the Director, providing evidence that the requested concessions and incentives result in identifiable and actual cost reductions. The cost of reviewing the project proforma information, including, but not limited to, the cost to the city of hiring a consultant to review the financial data, shall be borne by the applicant. The proforma information shall include all of the following items: (A) The actual cost reduction achieved through the concession; (B) Other information requested by the Planning Director. The Planning Director may require additional information as is required to evaluate the proforma information; (c) If a waiver or modification of development standards is requested, the following information must be included in the application: (v)(i) If a waiver or modification is requested, a A brief explanation of why the development standard would physically preclude the construction of the development with the density bonus, incentives, and concessions requested. (vi) Site plan showing location of market-rate units, restricted affordable units, and density bonus units within the proposed development; (vii) level of affordability of the restricted affordable units and proposed method to ensure affordability; (viii) For concessions and incentives that are not included within the menu of incentives/concessions set forth in subsection (c) of Section 18.15.050, the application requires the submittal of the project proforma or other comparable documentation (referred to herein as the “proforma information”) to the Director, providing evidence that the requested concessions and incentives result in identifiable and actual cost reductions. The cost of reviewing the project proforma information, including, but not limited to, the cost to the city of hiring a consultant to review the financial data, shall be borne by the applicant. The proforma information shall include all of the following items: (A) The actual cost reduction achieved through the concession; (B) Other information requested by the Planning Director. The Planning Director may require additional information as is required to evaluate the proforma information; (ix)(ii) If a waiver or modification of a development standard is requested, the applicant shall provide evidence Evidence that the development standard for which the waiver or modification is requested will have the effect of physically precluding the construction of the development with the density bonus and concessions requested; *NOT YET ADOPTED* 13 0160038_20210506_ay (x)(d) If a density bonus or concession is requested for a land donation, the application shall show the location of the land to be dedicated, provide proof of site control, and provide evidence that all of the requirements and each of the findings included in Government Code Section 65915(g) can be made; (xi)(e) If a density bonus or concession is requested for a child care facility, the application shall show the location and square footage of the child care facilities and provide evidence that all of the requirements and each of the findings included in Government Code Section 65915(h) can be made. (xii)(f) If a density bonus or concession is requested for a condominium conversion, the applicant shall provide evidence that all of the requirements found in Government Code Section 65915.5 can be met. (b)(g) In accordance with state law, neither the granting of a concession, incentive, waiver, modification, or revised parking standard, nor the granting of a density bonus, shall be interpreted, in and of itself, to require a general plan amendment, zoning change, variance, or other discretionary approval. (c)(h) The Planned Community (PC) zone district is intended to accommodate developments requiring flexibility under controlled conditions not attainable under other zoning districts. Because of the flexible nature of the PC zone, which determines site specific requirements including density, the chapter does not apply to this zoning district. (d)(i) This chapter implements state density bonus law. Any density bonus, incentive, concession, revised parking standard, waiver, or modification sought by an applicant shall be made pursuant to this chapter and may not be combined with similar requests under state density bonus law. 18.15.090 Review Procedures An application for a density bonus, incentive, concession, waiver, modification or revised parking standard shall be acted upon by the Approval Authority concurrently with the application for the first Discretionary permit. The granting of a density bonus shall not be deemed approval of the entire Project or approval of any subsequent discretionary permit. [. . .] (c) If the findings required by subsection (a) of this Section cannot be made, the Approval Authority may deny an application for a concession, incentive, waiver or *NOT YET ADOPTED* 14 0160038_20210506_ay modification only if it makes one of the following written findings, supported by substantial evidence: (i) The concession, incentive, waiver or modification is not concession or incentive does not result in identifiable and actual cost reductions required to provide for affordable rents or affordable sales prices; or [. . .] (d) If the Approval Authority is not the City Council, any decision denying a density bonus, incentive, concession, waiver, modification or revised parking standard may be appealed to the City Council within fourteen days of the date of the decision. 18.15.100 Regulatory Agreement (a) AApplicants for a density bonus, incentive, concession, waiver, modification or revised parking standard shall enter into a regulatory agreement with the city. The terms of the draft agreement shall be approved as to form by the City Attorney and reviewed and revised as appropriate by the Director of Planning and Development Services, who shall formulate a recommendation to the Approval Authority for final approval. [. . .] SECTION 3. 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 4. 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 5. The Council finds that the adoption of this ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to CEQA Guideline sections 15061(b)(3) because the ordinance simply codifies existing state law and it can be seen with certainty that the minor adjustments herein will have a significant effect on the environment. Any project seeking to utilize the density bonus provisions herein will be subject to appropriate environmental review. *NOT YET ADOPTED* 15 0160038_20210506_ay SECTION 6. 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 *NOT YET ADOPTED* DRAFT 1 0160037_20210104_ay_16 Ordinance No. ____ Ordinance of the Council of the City of Palo Alto Amending Chapter 18.52 (Parking and Loading Requirements) of Title 18 (Zoning) of the Palo Alto Municipal Code (PAMC) to Update Parking Requirements in Compliance with Measures Promoting the Construction of Affordable Housing. The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and declarations. The City Council finds and declares as follows: A. On September 28, 2020, the Governor approved AB 1851, which prohibits local authorities from requiring the replacement of religious-use parking spaces that a developer of a religious institution affiliated housing development project proposes to eliminate as part of that housing development project. B. For developments receiving density bonuses, the parking requirements described in Chapter 18.52 of the Palo Alto Municipal Code may be modified or superseded by Chapter 18.15 of the Palo Alto Municipal Code, governing density bonuses. C. The City Council is therefore updating the parking requirements in Title 18 of the Palo Alto Municipal Code to comply with AB 1851 and to make reference to Chapter 18.15 of the Palo Alto Municipal Code. SECTION 2. Section 18.52.040 (Off-Street Parking, Loading and Bicycle Facility Requirements) of Chapter 18.52 (Parking and Loading Requirements) of Title 18 (Zoning) is hereby amended as follows: 18.52.040 Off-Street Parking, Loading and Bicycle Facility Requirements (a) Parking Requirements In each district, off-street parking, loading and bicycle facilities for each use shall be provided in accordance with Tables 1 and 2, shown in subsection (c) of this Section 18.52.040. For affordable housing developments qualifying for density bonuses under Chapter 18.15 of the Palo Alto Municipal Code, adjustments to parking requirements will be calculated in accordance with Chapter 18.15. The requirement for any use not specifically listed shall be determined by the director on the basis of requirements for similar uses, and on the basis of evidence of actual demand created by similar uses in Palo Alto and elsewhere, and such other traffic engineering or planning data as may be available and appropriate to the establishment of a minimum requirement. [. . .] *NOT YET ADOPTED* DRAFT 2 0160037_20210104_ay_16 SECTION 3. Section 18.52.045 (Minor Adjustments to Existing Parking Facilities) of Chapter 18.52 (Parking and Loading Requirements) of Title 18 (Zoning) is hereby amended as follows: 18.52.045 Minor Adjustments to Existing Parking Facilities (a) The following minor adjustments may be made to existing parking facilities that are intended to remain in substantially the same form after restriping. (a)(1) Accessibility and EVSE-related equipment. For sites with existing development, the number on-site parking spaces may be reduced to the minimum extent necessary to: (1) achieve state or federally mandated accessibility requirements or (2) permit installation of electrical utility equipment required for EVSE. A maximum of 10% of the existing automobile parking stalls, or one stall, whichever is greater, may be removed pursuant to this section. The loss of a parking space is not permitted to accommodate EVSE itself. To the extent reasonably feasible, electrical equipment required for EVSE shall be placed in a location that minimizes visibility from the public right-of-way. (b)(2) Substitution of bicycle parking. For sites with existing development, where additional bicycle parking facilities cannot reasonably be located outside of the parking facility area, existing automobile parking stalls may be substituted with long- or short-term bicycle parking facilities. The maximum number of substitutions shall be two existing automobile parking spaces, or 10% of the existing automobile parking stalls, whichever is greater. A minimum of four long-term or eight short-term bicycle parking spaces is required per automobile parking space. The bicycle parking spaces are to be located in the same physical location as the automobile spaces they are replacing, which shall be near primary entries of the building on-site or in locations that meet best practices for bicycle parking facilities. (b) Substitution of religious-use parking for housing development projects. (1) This subdivision applies to religious institution affiliated housing development projects, as defined by Section 65913.6(a)(5) of the California Government Code. (2) The developer of a religious institution affiliated housing development project is not required to replace religious-use parking spaces which the developer eliminates as a part of that housing development project. Such a reduction may not exceed fifty percent (50%) of the number of religious-use parking spaces that are available at the time the request is made. *NOT YET ADOPTED* DRAFT 3 0160037_20210104_ay_16 (3) Religious-use parking spaces may count towards parking spaces required for the religious institution affiliated housing development project if: (A) There is at least one space per unit, (B) The parcel is within one-half mile walking distance of public transit, or (C) There is a car share vehicle located within one block of the parcel. SECTION 4. 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 5. 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 6. The Council finds that the adoption of this ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to CEQA Guideline sections 15061(b)(3) because the ordinance simply codifies existing state law and it can be seen with certainty that there is no possibility that the codification of such parking regulations will have a significant effect on the environment. Any project seeking to utilize the parking substitution provisions herein will be subject to appropriate environmental review. // // // // // // // *NOT YET ADOPTED* DRAFT 4 0160037_20210104_ay_16 SECTION 7. 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 City of Palo Alto (ID # 12298) City Council Staff Report Report Type: Action Items Meeting Date: 6/1/2021 City of Palo Alto Page 1 Summary Title: Tri City Fire Agreement for Fire Station 8 (Foothills) Staffing During Fire Season Title: Approval of the Tri -party Fire Agreement for Foothills Reserve Fire Station Staffing During Fire Season From: City Manager Lead Department: Fire Staff Recommendation Staff recommends that the City Council approve the City of Palo Alto entering into a memorandum of understanding (Agreement) with the Los Altos Hills County Fire District and the Santa Clara County Fire Department to staff Palo Alto Fire Station 8 (Foothills) during wildland fire seasons (Attachment A). Executive Summary Acceptance of the staff recommendation will authorize the City of Palo Alto to enter into an Agreement to staff Fire Station 8 (Foothills) during wildland fire season. This Agreement positions our region well to maximize limited fire resources and increase the level of service within our communities to support wildfire protection during the fire seasons. During wildland fire season, the station will be staffed seven days a week with a three-person company. The engine will be staffed for a minimum 12-hour day (estimated to be 8am to 8pm) and more hours as warranted should weather conditions such as red flag warnings occur. Palo Alto Fire and Santa Clara County Fire will staff Fire Station 8 (Foothills) on a monthly rotation beginning in June, and extending to the end of wildland fire season, typically November. Under this proposal, all three agencies will provide resources that benefit the respective communities and the Santa Clara County Mutual Aid system. The Agreement is year to year for up to four additional years, where Los Altos Hills County Fire District will be billed monthly to pay for a three-person fire crew at an overtime rate of pay while on duty assignment at Fire Station 8 (Foothills) during the Wildland Firefighting Season. Background City of Palo Alto Page 2 The County of Santa Clara has a long history of wildland fires occurring throughout its wildland urban interface and rural areas, as well as in its open spaces and parks. W hile wildland fires within our county cannot be fully prevented, fire service agencies have proactively engaged in establishing preemptive operational efforts to minimize potential impact and increase our community’s resiliencies should wildland fires occur. Before the summer of 2015, Palo Alto Fire Station 8 (Foothills) was staffed annually from July 1 through October 31, from 8:00 am through 8:00 pm, every day during fire season. The Palo Alto Fire Department would staff a fire engine staffed with three (3) personnel: a captain, an engineer (driver), and a firefighter. This all-risk crew would respond to fires, medical emergencies, rescue events, etc. In addition to responding to emergencies, the crew at Station 8 (Foothills) would conduct re-inspections of the residents in the Palo Alto Foothills, participate in wildfire training exercises, and patrol the roads and trails inside the park. Historically during fire season, Fire Station 8 (Foothills) was staffed with overtime personnel daily. In 2016, as a budget reduction strategy it was decided that Fire Station 8 (Foothills) would no longer be staffed every day from July 1 through October 31. Instead, the fire station would only be staffed on high fire danger days like a Red Flag Warning or special events like the 4th of July. During the 2020 fire season, Fire Station 8 (Foothills) was staffed for 17 days, the most since 2016. This increase in staffing was not only determined by the dry weather conditions but primarily due to the proximity of the CZU Fire and its proximity to the border of Palo Alto. Discussion Acceptance of the staff recommendation will authorize the City to enter into an Agreement to support a staffing plan of Fire Station 8 (Foothills) during wildland fire season. The Palo Alto Fi re Department and County Fire administrative staff have worked collaboratively on this recommendation and are fully prepared to begin working on the operational implementation. Joint staffing of Palo Alto Fire Station 8 (Foothills) is an excellent example of local agencies working together to maximize limited fire resources while increasing the level of service within our communities. Working together, Palo Alto Fire Department, the Los Altos Hills County Fire District, and the Santa Clara County Fire Department believe this partnership will serve as a positive example to other fire agencies of what can be accomplished when several jurisdictions work together. California’s 2020 fire season is characterized by a record-setting year of wildfires. Nearly 10,000 fires burned over 4.2 million acres translates to the largest wildfire season in recorded California’s history. 2021’s fire season is expected to be another year of devastating fire conditions. January 2021 was recorded as one of the driest Januaries in California’s history. In addition to the fire hazard, since Foothills Nature Preserve has opened to the public visitation has increased by 322% (124,000 visitors) compared with the same time period in 2020, January through April (29,472). People generate calls for service. Having Station 8 (Foothills) staffed and ready to respond to fires and emergency medical incidents is highly beneficial as many visitors are from all three jurisdictions of the parties in the Agreement. City of Palo Alto Page 3 The basic premise behind a wildland fire response is to minimize damage by keeping the fire small. Typically, the goal is to contain a wildland fire at 10-acres or less and eliminate any threat to populated areas. To accomplish the containment of wildfires, staffing is constantly modified throughout a fire season based on changing weather conditions. Resource availability, location, and staffing are critical components of providing a timely response and rapid containment when a wildland fire occurs. In reviewing resource-positioning within Los Altos Hills and the more rural areas of Palo Alto, the three local jurisdictions have identified an opportunity to combat the growing wildland fire threat to these communities proactively. Palo Alto Fire Department’s Station 8 (Foothills) resides within the northwestern portion of Santa Clara County. This fire station is uniquely positioned within Foothills Nature Preserve – strategically placed in its specific location to serve and provide protection from wildland fire. The potential impact of such an event would have on life and property could be devastating. When staffed, Palo Alto Station 8 (Foothills) crews can rapidly respond to emergencies that occur within areas inclusive of Palo Alto, Los Altos Hills, and the vast surrounding open spaces. The fire engine located at Station 8 (Foothills) will be an all-risk resource equipped to respond to various emergencies, including but not limited to medical emergencies, rescues, wildland fires, and structure fires. Timeline, Resource Impact, Policy Implications Los Altos Hills County Fire District (LAHCFD) shall provide funding to pay for a three-person fire crew at an overtime rate of pay while on duty assignment at Station 8 (Foothills) during the Wildland Firefighting Season as described in Section 3.1.1 of the Agreement. LAHCFD will be billed monthly to recover the cost of staffing Station 8 (Foothills). The Fiscal Year 2022 budget will be adjusted to reflect the new revenue and additional overtime expenses in the Midyear Budget Adjustment process. There are no additional resources required from the general fund as a result of this contract other than routine maintenance of Station 8. As noted, Palo Alto Fire and Santa Clara County Fire will staff Fire Station 8 (Foothills) on a monthly rotation beginning in June, and extending to the end of fire season, typically November. County Fire shall be authorized to occupy and use Fire Station 8 (Foothills) at no cost, other than as specified in the agreement, during wildland firefighting season, solely for the purpose of providing fire protection and other related services from the effective date of this Agreement and during such time as this Agreement remains in effect. This Agreement shall renew on a year to year bases for up to four (4) addition al years for a total term of five years. Environmental Review The agreement does not constitute a project under the California Environmental Quality Act (CEQA). Attachments: • Attachment A: Tri-City Agreement Fire Station 8 1 FIRE AND EMERGENCY MEDICAL SERVICES AGREEMENT BETWEEN SANTA CLARA COUNTY CENTRAL FIRE PROTECTION DISTRICT, LOS ALTOS HILLS COUNTY FIRE DISTRICT, AND CITY OF PALO ALTO FOR THE OPERATIONS AND FUNDING OF FIRE STATION 8 This Fire and Emergency Medical Services Agreement (the “Agreement”) for the operations and funding of Fire Station 8, is made by and among the Santa Clara County Central Fire Protection District, a special district (“DISTRICT”), the Los Altos Hills County Fire District, a special district (“LAHCFD”), and the City of Palo Alto, a California municipal corporation and charter city (“CITY”) (each a “Party” and collectively the “Parties”), with respect to the provision of Fire and Emergency Medical Services. RECITALS WHEREAS, CITY provides fire protection and emergency medical services within its municipal boundaries; and WHEREAS, LAHCFD provides fire protection services within its district boundaries through a fire services contract with the DISTRICT for fire suppression, emergency medical response and associated fire resources; and WHEREAS, LAHCFD desires to enhance and extend its annual high fire season firefighting capabilities by expenditure of its funds in order to supplement its existing fire services agreement with the DISTRICT to extend to the northern boundaries of its jurisdiction that border Palo Alto and thereby, enhance emergency response times and proximity to areas of high fire danger for its residents, and WHEREAS, pursuant to this Agreement, DISTRICT and CITY are willing to provide their resources, firefighting crews and equipment and enhance services at the northern boundaries of LAHCFD and CITY, and LAHCFD is willing to expend funds for the services provided in this Agreement; and WHEREAS, CITY owns Fire Station Number 8, (“Station 8”) located in the Palo Alto Foothills Park at 3300 Page Mill Road, adjacent to the boundary of the LAHCFD, and for a period of time commencing in 1992, LAHCFD had participated with CITY to exercise jointly their powers to provide fire protection and emergency medical response during the summer and high fire season months by staffing Station 8 for wildland firefighting; and WHEREAS, Station 8’s location is advantageous to the strategic needs of the Parties relative to the rapid deployment of, including but not limited to, apparatus and equipment, resources, and proximity to mobilize emergency responses by housing fire crews for wildland firefighting; and WHEREAS, the Parties have contemplated the current availability of resources. i.e., facilities, personnel, equipment, risks/call response types, agency/system benefits and sustainability considerations in order to provide life safety and property protection during summer and high fire season months; and 2 WHEREAS, the Parties desire to work in partnership and each contribute resources to staff and utilize Station 8 primarily to improve the wildland firefighting capabilities of the Parties in their respective jurisdictions and bolster regional mutual aid; and WHEREAS, the Parties therefore desire to jointly exercise their powers to provide fire protection and emergency medical response pursuant to Government Code section 6500, et seq., under the terms and conditions set forth below. NOW THEREFORE, in consideration of the recitals and the mutual obligations of the parties set forth in this Agreement, DISTRICT, LAHCFD, and CITY agree as follows: ARTICLE 1 DEFINITIONS 1.1 Definitions. For purposes of clarity and consistency, the definitions set forth in Exhibit B hereto shall apply to this Agreement unless the context clearly requires a different meaning. 1.2 The definitions included in the Exhibit B, shall apply to this Agreement unless the Agreement indicates otherwise. ARTICLE 2 TERM; EXTENSIONS 2.1 Term of Agreement. This Agreement shall be effective on the date of full execution by the Parties and shall be effective until December 31, 2021. 2.2 Extensions. This Agreement shall automatically renew on a year-to-year basis for up to four additional years, unless any Party provides written notice of non-renewal to the other Parties prior to December 1 of each year. Any notice of non-renewal shall be approved by the respective legislative bodies of the Parties issuing the notice of non-renewal. 2.3 Continuing Obligations. The provisions in Sections 2.3 and 6.2.6 and Article 9 shall survive expiration or termination of this Agreement for any reason. ARTICLE 3 SCOPE OF SERVICES 3.1 Fire Suppression and Protection Services. During wildland firefighting season, which shall be defined as from June 15 to October 31 or as otherwise agreed to in writing by the Parties as weather conditions require (“Wildland Firefighting Season”) DISTRICT and CITY shall jointly provide the following fire suppression and protection services (“Services”) necessary to operate Station 8 for the mutual benefit of the Parties: 3.1.1 During Wildland Firefighting Season, Station 8 shall be staffed by the CITY and the DISTRICT as further specified in this Agreement with a three-person engine company for a minimum of 12 hours per day (generally 8:00 a.m. to 8:00 p.m.), seven days a week, and more hours as reasonably warranted should weather conditions such 3 as red flag warnings occur subject to agreement of the respective fire chiefs of the CITY and DISTRICT. The engine shall be a Type 3 or Type 6 engine and an all-risk resource and shall include equipment and Advanced Life Support (“ALS”) medical equipment. As specified below, on a rotating monthly basis, or on a rotation scheduled as determined by the Parties, CITY and DISTRICT personnel shall staff the engine with one fire captain, one engineer and one firefighter or in a three-person crew configuration as determined by the fire chief or his or her designee, of the agency deploying the fire protection services for that duty shift. One crew member will be qualified and accredited in Santa Clara County as a paramedic. The apparatus and personnel assigned to Station 8 will respond to the areas in the CITY, DISTRICT and LAHCFD, adjacent to the Page Mill Road corridor from Skyline Blvd. to Interstate 280, and will be available for mutual aid in accordance with the Santa Clara County Local Fire Service and Rescue Mutual Aid Plan, dated March 5, 1997. Staffing flexibility and schedule rotation shall be accommodated to avoid impacts from agency staffing challenges. Staffing shall be compensated at the respective Parties’ overtime rates of pay in accordance with Article 10.2 and Exhibit C. Staffing and schedule rotation flexibility may be adjusted as reasonably necessary between the DISTRICT and the CITY by approval of the respective fire chiefs or designees to accommodate staffing and operational needs. The responsibility will be with the assigned Party to fill the engine based on the assigned monthly schedule. o Starting as soon as feasible after the effective date of this Agreement and no earlier than June 15, 2021, CITY will staff its Type 3 or Type 6 engine at Station 8. o Starting July 1, 2021, DISTRICT and CITY shall rotate monthly to staff its Type 3 or Type 6 engine at Station 8. DISTRICT and CITY may make adjustments in the rotating schedule as agreed to in writing by the fire chiefs or designees to provide staffing and operational flexibility. o This monthly staffing and rotation of engine and personnel by agency shall continue through October 31, 2021 but may be extended as needed through the month of November or later following the staffing and rotation model schedule below:  June-CITY  July-DISTRICT  August-CITY  September-DISTRICT  October-CITY  November-DISTRICT CITY and DISTRICT shall retain the obligation to provide all salary and employee benefits required by contract or by law (including workers compensation benefits) for their respective employees assigned under this Agreement. Each employee assigned under this Agreement shall be subject to their respective agency’s personnel rules, regulations, and processes, as well as any labor contract provisions applicable to that employee. No personnel performing any part of this Agreement shall be deemed to be employees, agents or contractors of LAHCFD. 4 3.2 Dispatch Communications. County Communications shall be primarily responsible for dispatch of Station 8 resources under this Agreement, subject to cooperation between the Parties based upon the operational needs of the Parties. ARTICLE 4 4.1 Reserved. ARTICLE 5 SERVICE LEVELS, STANDARDS OF PERFORMANCE 5.1 Standard of Performance. DISTRICT and CITY shall perform all services required under this Agreement in a manner and according to the standards observed by competent fire personnel providing equivalent services. All products of whatever nature and all services shall be prepared and provided in a professional manner. ARTICLE 6 REAL PROPERTY 6.1 Real Property Defined. As used in this section, the term “Real Property” shall mean that land and improvements situated thereon consisting of the Station 8 fire station and appurtenances thereto owned by CITY, as described in that document entitled “CITY Real Property Schedule,” attached hereto as Exhibit A, and incorporated by reference herein. 6.2 Real Property. 6.2.1 CITY shall make available to DISTRICT all documentation regarding manufacturers warranties, invoices and product information (such as owner’s manuals, operation and maintenance records) pertaining to all appliances and systems in place in Real Property. 6.2.2 Subject to the terms and conditions contained in this Section, DISTRICT shall be authorized to occupy and use CITY’s Real Property at no cost, other than as specified herein, during Wildland Firefighting Season, solely for the purpose of providing fire protection and other related services from the effective date of this Agreement and during such time as this Agreement remains in effect. 6.2.3 DISTRICT, and CITY shall occupy and use the Real Property as a fire station for the housing of fire crews, emergency medical personnel, fire apparatus, and equipment unless CITY consents to the use thereof for other purposes. Said Real Property may also be used for miscellaneous incidental purposes related to the performance of fire prevention and suppression services, such as, storage of surplus equipment or materials and supplies, repair shops, administrative offices and staff training centers. 5 6.2.4 All personnel assigned to the facility shall keep the premises in a safe, neat and clean condition. All personnel shall also maintain in good working order, and meet and confer to replace when necessary, all CITY-owned furnishings, appliances, and fixtures. DISTRICT agrees not to remove any CITY-owned furnishings, appliances, or fixtures from the Real Property, except with the prior written approval of CITY. 6.2.5 All personnel assigned to the facility shall maintain in good condition and repair the grounds surrounding the premises, the walls, ceiling, floors, vegetation, sidewalks, driveways and other structural components of the premises, the plumbing, heating and cooling systems, electrical conduits, outlets, switches and emergency generators. Repairs will be performed promptly according to code. 6.2.6 CITY shall be responsible for any and all repairs and/or replacement, and maintenance of fuel tanks at the fire station listed in Exhibit A. CITY shall retain any and all rights of ownership in said fuel tanks. CITY shall be fully responsible for any and all clean-up costs associated with fuel tanks on the premises prior to, during, and after DISTRICT’S use of the fire station listed in Exhibit A. CITY shall not be responsible for contamination caused by DISTRICT, as determined by a court of competent jurisdiction, including but not limited to, costs for cleanup, response, removal, remediation, administrative oversight, criminal or civil penalties, and attorney fees and costs. Where contamination is from a joint cause there shall be joint liability to the extent such liability is not severable and/or apportionable. This section shall survive the termination of this Agreement. 6.2.7 In the event that any of the Real Property is for any cause destroyed or damaged beyond repair by DISTRICT personnel or their agents, to the extent such destruction or damage is caused by DISTRICT’s personnel or agents, DISTRICT shall within a reasonable time replace same with improvements and facilities of the same kind and purpose, and of at least the same quality, size and capacity as those damaged or destroyed. 6.2.8 Except as otherwise provided by this Agreement, DISTRICT shall not lease, sublease or otherwise assign its right to use the Real Property to any other party or permit any other party to permanently or temporarily occupy or use the Real Property, or assign its right to perform services under this Agreement without the written consent of CITY. Likewise, CITY shall not lease, sublease or otherwise assign its rights to use the Real Property to any other party to permanently or temporarily occupy or use the Real Property without the written consent of DISTRICT and LAHCFD. No successor in interest of DISTRICT shall be vested with any right to use the Real Property under this Agreement without the written consent of CITY. 6.3 Identity of Fire Station. The Parties mutually agree that the retention of community identity is important to all agencies, and therefore, Station 8 shall continue to be identified as CITY station and may also be identified with the logos of the Parties as determined by CITY, and the apparatus stationed 6 therein shall bear the name of the agency providing the apparatus in use by its personnel. ARTICLE 7 VEHICLES AND EQUIPMENT 7.1 Apparatus and Equipment. DISTRICT and CITY shall provide at their sole respective expense, the Type 3 or Type 6 fire engine located at Station 8 during their respective monthly rotation. Except as otherwise provided in this Agreement, the engine shall also be available to respond as part of the mutual aid system as requested and approved by the Operational Area Coordinator. The engine shall be an all-risk resource and shall include equipment and Advanced Life Support (ALS) medical equipment. It shall be equipped to respond to a variety of emergencies, including but not limited to medical emergencies, rescues, wildland fires, and structure fires. ARTICLE 8 RECORDS RETENTION 8.1 Record Retention and Storage. In accordance with all applicable laws and local policies, each Party shall retain ownership of its own fire service records. The Parties agree to grant access to, share and exchange records as needed, in compliance with applicable federal, state, and local laws and policies concerning data protection and privacy. No Party may destroy another Party’s records without written permission. Notwithstanding anything to the contrary, the CITY and DISTRICT shall retain all records related to this Agreement for a period five (5) years after termination or expiration of this Agreement. CITY and DISTRICT shall promptly provide any and all such records to LAHCFD upon request. ARTICLE 9 INSURANCE, INDEMNITIES AND RELATIONSHIPS OF THE PARTIES 9.1.1 Insurance Required. CITY and DISTRICT shall maintain self-insurance or commercial coverage during all periods this Agreement is in effect to provide comprehensive general liability insurance and property insurance to enable it to meet all contractual obligations herein. The CITY and DISTRICT’s comprehensive general liability insurance or any future self-insurance program shall provide minimum coverage of five million dollars ($5,000,000) if commercially available. Certificates of insurance evidencing ongoing coverage shall be mutually provided to each Party’s risk manager annually on the anniversary date of this Agreement. Each Party shall be given thirty (30) days advance notification of any material changes, cancellations or anticipated lapses in coverage from each other Party including, but not limited to, policy limits and deductibles. Any significant changes in coverage shall be subject to approval by the other Parties. 9.1.2 CITY and DISTRICT shall each maintain its current workers’ compensation self- insurance program or shall at all times maintain workers’ compensation insurance in an amount to comply with California statutory requirements. Each Party (CITY or DISTRICT or both) with assigned personnel shall be responsible for any and all 7 workers’ compensation claims arising solely out of an industrial accident or incident to the extent an incident occurred prior to the effective date of this Agreement. 9.2 Indemnities and Relationships of the Parties 9.2.1 CITY’s and/or DISTRICT’s Fire Station Number 8 personnel shall not be considered to be either general or special employees of LAHCFD, or agents or contractors of LAHCFD, for any purposes, including the workers' compensation laws. 9.2.2 Except as otherwise provided for in this Agreement, and notwithstanding the provisions of Government Code Section 895.2, DISTRICT and CITY shall mutually defend, indemnify, and hold harmless each other and their respective officers, agents, employees and representatives from any and all losses, liability, damages, claims, suits, actions and administrative proceedings, and demands and all expenditures and cost relating to acts or omissions of the indemnitor, its officers agents or employees arising out of or incidental to the performance of any of the provisions of this Agreement, including, but not limited to, claims alleging intentional or negligent acts or omissions, willful misconduct, or violations of state or federal civil rights laws. Parties do not assume liability for the acts or omissions of persons other than their respective officers, employees, and agents. In the event of the concurrent negligence of the DISTRICT and CITY, or the officers, agents and/or employees of multiple Parties, then the liability for any and all claims for injuries or damages which arise out of the performance of this Agreement shall be apportioned under California’s theory of comparative fault as presently established or may be hereafter modified. Notwithstanding the provisions of Government Code Section 895.2, to the fullest extent permitted by law, and in recognition of LAHCFD’s sole role as the funder of services under this Agreement, CITY and/or DISTRICT shall defend (with counsel reasonably approved by LAHCFD), indemnify and hold harmless the LAHCFD, the LAHCFD Board of Commissioners, members of the LAHCFD Board of Commissioners, the LAHCFD’s employees, representatives, agents and volunteers from any and all suits, damages, costs, fees, claims, demands, causes of action, liabilities, losses expenses, damage or injury of any kind, in law or equity, to property or persons, including wrongful death and financial losses (collectively, “Claims”) in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of, CITY and/or DISTRICT’s officers, assistants, subcontractors, employees or agents in connection with the performance of Services or this Agreement. 9.2.3 This Agreement is entered into solely for the mutual benefit of the signatory parties and not for the benefit of any resident or other person or entity. No person or entity not a party hereto shall have any right to enforce this Agreement or bring any action as a consequence of this Agreement arising out of a failure or omission on the part of any of the Parties to provide the Services described herein. 9.2.4 This Agreement shall supplement and shall not supplant or reduce the scope of any agreements or arrangements between the Parties for automatic aid or mutual aid or otherwise, including but not limited to LAHCFD’s existing fire services agreement with DISTRICT, in emergencies requiring fire suppression or first responder medical care into the areas of LAHCFD covered by this Agreement. 8 9.2.5 This Agreement shall not be construed to create any separate joint powers entity under the provisions of Government Code §6500, et seq. Notwithstanding the provisions for allocation of loss or liability provided therein, the provisions of this Agreement for loss allocation shall govern. ARTICLE 10 TERMS OF PAYMENT/FINANCIAL PROVISIONS 10.1 Wildland Firefighting Season Operating Costs. Except as otherwise provided in this Agreement, the Parties agree that the amount provided in this Article shall be sufficient to cover all expenses associated with providing comprehensive fire and emergency medical services including, but not limited to staffing, supplies, services, capital outlay, vehicle and equipment maintenance and amortization, and communications. 10.2 LAHCFD shall provide funding to pay for a three-person fire crew at overtime rate of pay while on duty assignment at Station 8 during the Wildland Firefighting Season as described in Section 3.1.1 (i.e.,12 hours per day 7 days per week) above at the published California Office of Emergency Services overtime salary rates (1.5 times of salary) for each of the above-described positions of CITY and DISTRICT respectively. LAHCFD shall pay no additional costs and no costs associated with, including but not limited to, administration, management including battalion chief and other staffing, overhead fees, station costs and/or engine equipment costs. Due to the unpredictability and severity of weather conditions and/or wildland fire events, additional staffing hours, beyond the core staffing hours for Station 8, as described above in this paragraph, are anticipated. These additional funds shall be allocated as agreed to by the Parties. The total not to exceed amount (“Not to Exceed Amount”) for costs for the 2021 Wildland Firefighting Season to be funded by LAHCFD shall be $558,000 as calculated pursuant to the method set forth in the attached Exhibit C unless this paragraph is amended by the Parties. Parties also anticipate amending this Agreement, including this Section 10.2, as necessary to reflect funding amounts for Wildland Firefighting Seasons beyond 2021. To the extent a grant and/or other external funding source is obtained to pay for or to offset the cost of staffing Station 8 pursuant to this Agreement, LAHCFD shall be reimbursed and/or excused from paying in an amount equal to the grant and/or external funding source obtained. However, funds expended by LAHCFD will be only for payment of actual staff hours worked as described in the paragraph above and Exhibit C. 10.3 DISTRICT and CITY shall invoice LAHCFD monthly based on services provided and shall provide timesheet records to substantiate amounts invoiced. LAHCFD shall make payments within thirty (30) days of receipt of the invoice. If an amendment to Exhibit C is required for payments, LAHCFD may be required to delay payment by a reasonable time period to allow for any necessary amendments. // // 9 ARTICLE 11 TERMINATION 11.1 Termination for Cause. Without limiting any other remedy that may be available, this Agreement may be terminated for a material breach after giving the breaching Party notice and a reasonable opportunity to cure as stated in Section 12.1. 11.2 Termination without Cause. Any Party may terminate this Agreement without cause by providing a notice of non-renewal as provided in Section 2.2 above. 11.3 Duties Upon Termination. In the event of termination, and in accordance with all applicable laws, all Parties shall retain ownership of their respective fire service records. However, this ownership shall be subject to retention and production provisions specified in Section 8. 11.4 Payment upon Termination. DISTRICT and/or CITY shall meet and confer and shall rebate to LAHCFD any payment for services not received, and DISTRICT and/or CITY shall pay LAHCFD a pro-rated amount for all days not constituting a full pay period owed up to and including the date of termination, but in no event shall LAHCFD pay for any days or months of personnel services rendered as required in Section 10 of this Agreement subsequent to the termination date, except as by written agreement for extension of the Wildfire Firefighting Season. Acceptance of the final payment as described in this paragraph to LAHCFD shall constitute a complete accord and satisfaction between the Parties, solely as to the issue of payments of services on termination. ARTICLE 12 DISPUTE RESOLUTION 12.1 Mediation. At any time during the term of this Agreement, the Party aggrieved by a material breach may give written notice describing the breach to the Party responsible. Upon receipt of the written notice, the Party responsible shall respond within ten (10) working days in writing with a detailed action plan summarizing the Party’s position on any pertinent issue and how the Party will correct the problem. If the dispute is not resolved within thirty (30) days of the date on which the action plan is sent, the Parties will explore submission of the issue to mediation. If the foregoing processes fail to fully resolve the dispute, the Parties may pursue all remedies available to them in law or equity. 12.2 Governing Law. California law shall govern this Agreement and the interpretation thereof. ARTICLE 13 MISCELLANEOUS PROVISIONS 13.1 Incorporation of Exhibits. This Agreement incorporates each of the exhibits by reference. 10 13.2 Assignment. Except as expressly provided herein, CITY, LAHCFD, and DISTRICT shall not assign, delegate, subcontract, grant, or encumber any right, duty or interest, in whole or in part, in or of this Agreement. 13.3 Notices. All notices, demands or other writings to be given, made, or sent pursuant to this Agreement or which may be given or made or sent, by any party to this Agreement to another (other than routine correspondence between the parties), shall be deemed to have been fully given, made or sent when put in writing and delivered personally or mailed by first class certified return receipt mail, addressed to the respective parties as follows: To CITY: CITY MANAGER Palo Alto City Hall 250 Hamilton Avenue Palo Alto, CA 94301 To DISTRICT: FIRE CHIEF 14700 Winchester Boulevard Los Gatos, CA 95032 To LAHCFD: General Manager P.O. Box 1766 Los Altos, CA 94023-1766 The address to which any notice, demand or other writing may be given or made or sent to any Party may be changed by written notice given by such Party. 13.4 Compliance with Law. The Parties agree to comply with and abide by all federal, state, county, municipal and other governmental statutes, ordinances, laws and regulations which affect this Agreement. 13.5 Covenant of Further Assurances. The Parties agree that subsequent to the execution and delivery of this Agreement, and without any additional consideration, they shall perform such further acts and shall execute such additional documents as are reasonably necessary and appropriate to fulfill the intent of the parties under this Agreement and to affect any necessary corrections thereto (as may be requested from time to time). 13.6 Waiver of Rights. No Party may waive or release any of its rights or interests in this Agreement except in writing. Failure to assert any right arising from this Agreement shall not be deemed or construed to be a waiver of such right. Waiver of any particular right shall not constitute a waiver of any other right under this Agreement. 13.7 Interest in Agreement. This Agreement shall not be deemed or construed to confer upon any person or entity, other than the parties hereto, any right or interest, including, without limiting the generality of the foregoing, any third-party beneficiary status or any right to enforce any provision of this Agreement. // 11 13.8 Consents. Approvals, and Modifications. 13.8.1 All consents, approvals, interpretations, and waivers relating to this Agreement shall bind a Party only when executed by such Party’s Authorized Representative. CITY’s Authorized Representative shall be its City Manager; and DISTRICT’s shall be its Fire Chief and LAHCFD’s shall be its General Manager. Agents expressly authorized in writing by said City Manager, and/or Fire Chief, and/or General Manager shall also be Authorized Representatives. Modification of this Agreement may occur only in writing upon the mutual consent of the Parties. 13.8.2 The City Manager is authorized to approve minor modifications to this contract on behalf of CITY, provided such modifications do not significantly affect the scope of services or compensation. The Fire Chief is authorized to approve minor modifications on behalf of DISTRICT provided such modifications do not significantly affect the scope of services or compensation. The General Manager is authorized to approve minor modifications to this contract on behalf of LAHCFD provided such modifications do not significantly affect the scope of services or compensation. A “minor modification” for the purpose of this section is one that is necessary as a result of a potential threat to public safety and the lack of the timely ability to obtain proposed changes’ approval from the legislative bodies of the Parties. 13.9 Entire Agreement. This Agreement constitutes the entire understanding and agreement between these Parties; and no other agreement, statement, or promise made by any Party, or any employee, officer, or agent of any Party which is not contained in this Agreement is binding or valid. 13.10 Successors in Interest. This Agreement shall be binding upon and shall inure to the benefit of any successors to or assigns of the Parties. 13.11 Severability. Should any part, term, portion, or provision of this Agreement be deemed to be in conflict with any law of the United States or of the State of California, or otherwise found to be unenforceable or ineffectual by a court of competent jurisdiction, the validity of the remaining terms, parts, portions, or provisions shall be deemed severable and shall not be affected, provided such remaining portions or provisions can be construed in substance to constitute the Agreement. 13.12 Nondiscrimination. Each Party and every subcontractor shall comply with the provisions of the California Fair Employment and Housing Act, California Government Code section 12900 et. seq. and Title VII, 42 United States Code, Section 2000e et seq. and any amendments thereto. This Agreement may, at the option of any Party, be terminated or suspended in whole or in part in the event the other Party fails to comply with this nondiscrimination provision in accordance with the termination provisions. 13.13 Counterparts/Electronic Signature. This Agreement may be executed in counterparts. Unless otherwise prohibited by law or DISTRICT policy, the parties agree that an electronic copy of a signed contract, or an electronically signed contract, has the same 12 force and legal effect as a contract executed with an original ink signature. The term "electronic copy of a signed contract" refers to a transmission by facsimile, electronic mail, or other electronic means of a copy of an original signed contract in a portable document format. The term "electronically signed contract" means a contract that is executed by applying an electronic signature using technology approved by the DISTRICT. Effective Date of Agreement. This Agreement shall become effective on the date when all Parties have signed the agreement. IN WITNESS WHEREOF, the Parties hereto executed this agreement as set forth below. SANTA CLARA COUNTY CENTRAL FIRE PROTECTION DISTRICT _____________________________ By: MIKE WASSERMAN, Chairperson Board of Directors Signed and certified that a copy of this document has been delivered by electronic or other means to the Chairperson, Board of Directors ATTEST: __________________________________ MEGAN DOYLE Clerk of the Board of Directors APPROVED AS TO FORM AND LEGALITY: __________________________________ CHRISTOPHER R. CHELEDEN Lead Deputy County Counsel // // // // // // 13 CITY OF PALO ALTO _____________________________ By: ED SHIKADA City Manager ATTEST: __________________________________ BETH MINOR City Clerk APPROVED AS TO FORM: __________________________________ TERENCE HOWZELL Chief Assistant City Attorney LOS ALTOS HILLS COUNTY FIRE DISTRICT _______________________ MARK WARREN, President Board of Commissioners of Los Altos Hills County Fire District ATTEST: Date: ________________________ CORI VARGAS District Clerk APPROVED AS TO FORM AND LEGALITY: _________________________ STEVE MITRA Assistant County Counsel Exhibits: Exhibit A: City Real Property Schedule Exhibit B: Definitions Exhibit C: Staffing Costs 14 EXHIBIT A CITY REAL PROPERTY SCHEDULE Fire Station City of Palo Alto Palo Alto Station 8 at Foothills Park EXHIBIT B Definitions Emergency Management Emergency Management is an ongoing process to prevent, mitigate, prepare for, respond to, and recover from an incident that threatens life, property, operations, or the environment. Real Property The term "Real Property" shall mean that land and improvements situated thereon consisting of fire stations and appurtenances thereto owned by the CITY as described in that document entitled "CITY Real Property Schedule," attached hereto as Exhibit "A," and incorporated by reference herein. Apparatus and Equipment Shall mean the vehicles and tools required to perform the services and duties required by this contract, including, but not limited to, fire engines, ladder trucks, rescue units, command vehicles, pick-up trucks, sedans, ladders, fire hose, nozzles, breathing apparatus, and specialized rescue tools. EXHIBIT C Method of Calculating Costs to be Paid by LAHCFD I. The core staffing component of the Not to Exceed Amount is calculated by number of days of assignment that includes seven (7) days per week, at a twelve (12) hour shift per day for a three (3) member fire crew at a published Cal OES pay rate calculated at overtime pay for each position (“Base Amount”) for each agency. Pay rates shall be adjusted if Cal OES published rates for that pay period are adjusted. II. Also to be included in the Not to Exceed Amount are additional hours and days beyond the core staffing described in I above. Additional hours and days are necessary to provide additional staff for high fire dangers that occur as a result of red flag warnings, weather conditions, surrounding fires, and other emergencies that cause threat of a wildland fire. Additional staffing for these events shall be determined by the agency fire chief whose fire crew is on duty at time of the event and/or conditions necessitating staffing above the core staffing. LAHCFD and the fire chief whose fire crew is not on duty will be notified as soon as feasible. The Parties must agree in writing for continuation of the additional staffing once it is feasible for the Parties to confer. III. LAHCFD’s total funding contribution shall not exceed the Not to Exceed Amount reflected in the Agreement, Section 10.2, as the Agreement is from time to time amended. The Parties shall keep each other apprised of the usage of LAHCFD funds to ensure that any necessary amendment to the Agreement may be timely made. City of Palo Alto (ID # 12232) City Council Staff Report Report Type: Action Items Meeting Date: 6/1/2021 City of Palo Alto Page 1 Summary Title: Discussion and Direction on the Scope of Economic Development Title: Discussion on the Scope of Economic Development and Resources Needed for Implementation and Direction to Staff on the Desired Scope and Goals of Future Investment From: Cit y Manager Lead Department: Administrative Services Recommendation Staff recommends that the City Council discuss and provide direction on the scope of the economic development function for the City of Palo Alto, including the amount and type of resources Council views as appropriate for implementation of desired economic development program elements. Executive Summary Through the City’s work on Community and Economic Recovery (CER), there have been multiple conversations about the current, and desired future, state of Palo Alto’s local economy. These conversations included a panel discussion with AvenuInsights, Professor Nickelsburg from the UCLA Anderson forecast, and Professor Nick Bloom from Stanford as part of Council’s discussion of City Manager’s Report (CMR) #11790 (https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city- manager-reports-cmrs/year-archive/2020-2/id-11790.pdf) in November 2020. That conversation underscored and emphasized that the City of Palo Alto is facing impacts from COVID-19 that vary in both extent and magnitude from neighboring jurisdictions, specifically with greater decreases in sales tax and Transient Occupancy Tax (TOT) revenues. Through subsequent conversations, Council affirmed the importance of defining the scope and extent of the City’s economic development function. This was incl uded as a work item (Item G) in the Community and Economic Recovery workplan that was approved by the City Council on March 22, 2021 through discussion of CMR #12111 (https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city- manager-reports-cmrs/2021/id-12111.pdf). City of Palo Alto Page 2 As outlined in the May 3, 2021 Community and Economic Recovery Update t o City Council (CMR #12206, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city- manager-reports-cmrs/2021/id-12206.pdf), the City has contracted with the Good City Company to facilitate a discussion regarding the economic development landscape in Palo Alto and make recommendations to inform the scope and breadth of the City’s ongoing economic support activities. The Good City Company’s report is included as Attachment A and they will facilitate the discussion with the City Council on June 1, 2021. Following the discussion with the City Council, the Good City Company will work with staff to develop a scope of work, and potentially a Request for Proposal (RFP), that incorporates City Council feedback on the scope, extent, and intensity of the City’s desired economic development function. This may take the form of a recruitment for a City staff position, an RFP for a consultant to perform the work, or some hybrid model where work is done by in-house staff and consultant resources are used for special, complex, or technically challenging assignments. In reviewing the Good City Company report, City Council could consider a variety of approaches related to economic development. The following except from the Good City Company report, demonstrates surrounding cities approaches to economic development and demonstrate the varying degrees of staff resources and types of activities involved with implementing those programs. Some cities do not have a formal program or dedicated staff but respond as needed to business needs (such as the impacts on businesses from the pandemic) using staff from other city departments. City Council feedback on the scope of the City’s desired economic development function may take the form of: • a recruitment for a City staff position • an RFP for a consultant to perform the work • some hybrid model where work is done by in-house staff and consultant resources are used for special, complex, or technically challenging assignments such as economic impact analyses Good City Company Comparison of Local Cities Economic Development Work: CITY ECONOMIC DEVELOPMENT PROGRAM ACTIVITIES NUMBER OF STAFF Santa Clara No proactive program but City did support businesses in the pandemic by offering grants and responds to business inquiries and issues. No dedicated staff but a team from the city manager’s office responds to business needs City of Palo Alto Page 3 CITY ECONOMIC DEVELOPMENT PROGRAM ACTIVITIES NUMBER OF STAFF Sunnyvale Assistant to the City Manager Economic Development Specialist • Business retention/expansion effort; • Facilitate and support businesses with permitting issues and new development • Proactive efforts to support downtown revitalization Two full time dedicated economic development staff Cupertino • Business retention/expansion effort; • Assist businesses with permitting issues and provides access to resources and tools for local businesses Half-time dedicated economic development contract position. Mountain View Economic Vitality Manager Business Development Specialist Part-time support • Business retention/expansion effort • Facilitate and support businesses with permitting issues and new development • Proactive efforts to support downtown revitalization and relationship with major high-tech companies 2.5 full time dedicated economic development staff; $70,000 ongoing budget for Economic Support; One- time allocation $275,000 for businesses impacted by COVID-19 Los Altos Economic Development Coordinator • Business retention/expansion effort • Facilitate and support businesses with permitting issues and new development • Proactive efforts to support downtown businesses One full time dedicated economic development staff Menlo Park • Responsive assistance for local businesses No dedicated full-time economic development staff. There was a full- time housing/economic development position three years ago, but it not currently filled. Redwood City • Business 1.5 full time dedicated economic City of Palo Alto Page 4 CITY ECONOMIC DEVELOPMENT PROGRAM ACTIVITIES NUMBER OF STAFF Economic Development Manager Part-time support retention/expansion effort; • Facilitate and support businesses with permitting issues and new development • Proactive efforts to support downtown businesses development staff; One-time allocation of $450,000 for assistance to businesses impacted by COVID-19. No ongoing funding allocation. San Carlos Economic Development & Housing Manager Economic Development Coordinator • Business retention/expansion effort • Facilitate and support businesses with permitting issues and new development such as biotech expansions • Proactive efforts to support downtown businesses Two full time dedicated economic development staff Burlingame Economic Development & Housing Specialist • Business retention/expansion effort • Facilitate and support businesses with permitting issues and new development • Proactive efforts to support downtown businesses One full time dedicated economic development staff Belmont The city responds to inquiries and business issues as needed. No dedicated economic development staff Fremont Economic Development Director Two Economic Development Managers Economic Development Specialist • Business retention/expansion effort; • Facilitate and support businesses with permitting issues • Proactive efforts to build a new downtown • Facilitate growth of advanced manufacturing sector and innovative technology companies 4.5 full time economic development positions but only two are currently filled. City of Palo Alto Page 5 Background The City of Palo Alto has not had a formal Economic Development Manager role since the departure of staff in 2016. In the absence of a formal role, the City has dispersed a number of tasks and work items that fall under the definition of economic development across staff in various departments. During the COVID-19 pandemic, this work has been taken on primarily by a temporarily assigned staff member in the City Manager’s Office. This staff member did extensive work throughout the pandemic, ranging from coordinating tailored communication to various business sectors, to helping lead the Uplift Local initiative, to cultivating a closer relationship between the City of Palo Alto and the Chamber of Commerce, and ensuring businesses could connect with City staff to discuss and understand rules, regulations, and restrictions that were changing on a real-time basis. This staff member functioned very similar to the “Economic Development Coordinator” role described in Attachment A in other jurisdictions. Ongoing work of this quality at this level will require the affirmation and commitment of ongoing resources. To go beyond that caliber with additional work will require additional resources. As the City seeks to emerge from the pandemic, it is anticipated that the staff member who has been temporarily assigned to the City Manager’s Office to assist with econ omic recovery efforts will transition back to the Police Department in the coming months. The transition underscores the timeliness of this discussion to refine the scope of ongoing economic development in Palo Alto in the aftermath of COVID-19 and its impacts on our community. Timeline Following the discussion with the City Council, the Good City Company will work with staff to finalize the scope of work for the City’s ongoing economic development function. Staff will pursue the necessary next steps to implement an economic development program equal to the desired scope as discussed and recommended by the City Council. Staff will provide updates on this work through the regular Community and Economic Recovery Updates to the City Council. Resource Impact While there are no direct resource impacts from discussing the scope of the economic development function in the City of Palo Alto, the resource impact will be proportionate with the scope as defined by Council. The desired scope of the economic developmen t function will directly correlate to the resources necessary to implement that scope. Additionally, the scope of the economic development work will likely impact potential revenues depending on what elements are included in that work on an ongoing basis. Stakeholder Engagement The City’s ongoing work related to Community and Economic Recovery from the impacts of COVID-19 includes various stakeholder engagement elements. This Council discussion to define City of Palo Alto Page 6 the scope of economic development with the City Council represents the next step in stakeholder engagement. Following the discussion with the City Council, staff anticipates coordinating with the Chamber of Commerce to discuss the scope and solicit further feedback. Environmental Review The action recommended is not a project for the purposes of the California Environmental Quality Act. Attachments: • Attachment A: Good City Company Report - Overview of Economic Development.5.20.21 1 Attachment A CITY OF PALO ALTO: An Overview of Economic Development Prepared and Submitted by: The Good City Company Aaron Aknin Leslie Parks May 20, 2021 2 Attachment A Palo Alto City Council Study Session: Overview of Economic Development I. Introduction The City’s FY 2021 Adopted Budget reflected a reduction in General Fund revenues of $40 million which was anticipated due to financial impacts of the COVID-19 pandemic and resulting economic challenges. The Adopted Budget projected a nearly 40 -50 percent reduction in major revenue categories such as Transient Occupancy Taxes and Sales Taxes. As a result of the economic characteristics of revenue generation in Palo Alto, the City’s revenues have been more significantly impacted by the COVID-19 pandemic than neighboring jurisdictions. The Community and Economic Recovery Strategy workplan was adopted by the City Council on March 22, 2021 (https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/2021/id-12111-[80602].pdf). The workplan (specifically, Item G) referenced a need for the City council to refine the scope and breadth of the City’s economic support activities. The focus of this report and the presentation on June 1 is to define economic development and the role it can play in a community and economic recovery effort. Topics that will be covered in the presentation include: ▪ A definition of economic development ▪ Typical economic development goals and objectives ▪ Types of economic development activities undertaken by cities ▪ Approaches to implementing an economic development program ▪ What kind of effort is appropriate for Palo Alto and what resources are required for that effort? This report provides additional background information for the presentation. Please keep in mind, that the information is intended to help the City Council make an informed decision regarding initiatives and actions that best support and accelerate local community and economic recovery. The report does not advocate for any specific actions that support economic recovery but recognizes that each community has unique needs, opportunities, and goals that shape its approach to economic development. The presentation will conclude with questions from the City Council and a facilitated discussion of the City’s economic strengths, weaknesses, and opportunities and the City’s priority recovery goals. The conversation will allow the City Council to discuss and provide direction on what elements should be included in the scope of the City’s ongoing economic development activities and what resources will be necessary to implement that scope. These elements will then be incorporated into the next steps for the implementat ion of that economic development scope, which could range from hiring staff to developing a Request for Proposal for the provision of ongoing work by an outside consultant. 3 Attachment A II. What is Economic Development? Economic development means different things to different communities and the definition can change with fluctuations in economic cycles. There is no universally accepted definition. The California Association for Economic Development states that1: “Economic development is the creation of wealth from which community benefits are realized. It is an investment in growing the economy and enhancing the prosperity and quality of life for all residents.” Just as there is no universally accepted definition, the goals and objectives of economic development vary from community to community depending on its demographics and economic strengths, weaknesses, assets, opportunities, and challenges. A common goal of a successful city economic development effort enables a city’s general fund to support a high quality of life for the community that includes a diverse range of goods and services and amenities desired by residents. Goals and objectives of economic development can include the following: ➢ Retaining and supporting local businesses that provide goods and services desired by residents ➢ Increasing city revenues so that the general fund can provide high quality services for residents ➢ Improving upward mobility for residents All of these needs play an important role in the larger ecosystem of sustainability. The chart below provides a demographic comparison of Palo Alto, Mountain View, Burlingame, Menlo Park, Redwood City, San Carlos, and Sunnyvale. A community’s economic development goals often address its demographics. 1 The California Association for Local Economic Development members are public entities and practitioners in economic development. 4 Attachment A Demographic Comparison2 Palo Alto Mtn. View Burlingame Menlo Park San Carlos Redwood City U.S. Total Population 65,364 82,739 30,889 34,698 30,185 82,595 328,239,523 Median Household Income $157,120 $128,252 $122,999 $147,824 $169,640 $107,469 $62,843 Per Capita Income $89,205 $73,924 $70,519 $81,562 $83,961 $53,836 $34,103 Poverty Level 5.9% 7.3% 5.5% 8.4% 2.9% 9.6% 10.5% Median Age 41.9 35.0 40.5 38.0 42.6 37.0 38.1 High School Degree or Higher 97.4% 93.4% 95.2% 93.6% 97.2% 86.1% 88.0% B.A. Degree or Higher 81.9% 68.5% 65.3% 69.7% 68.6% 48.0% 32.1% Ethnicity • White 59.7% 54.9% 60.0% 68.6% 75.2% 57.9% 76.3% • Hispanic or Latinx 5.7% 17.8% 12.4% 15.7% 8.6% 37.2%% 18.5% • Asian 32.6% 31.4% 25.3% 13.5% 16.2% 14.3% 5.9% • African American 1.6% 1.8% 1.5% 4.6% 0.7% 1.9% 13.4% Cities that have lower educational attainment and median household income, a higher poverty level, and greater ethnic diversity may have economic development goals that focus on improving upward mobility by attracting and retaining businesses with higher paying jobs. Other cities with high educational attainment and a concentration of knowledge firms may want to implement proactive efforts to retain these businesses or diversify the types of companies located in the community. They may also focus on important issues and challenges such as sustainability of the environment and preserving natural resources that may be threatened by global warming. Besides maintaining a desired standard of living, sustaining a high quality of life for residents is a priority community goal. All the cities in the table have downtowns with unique characteristics. The vitality of these commercial centers is important to each community. In 2 U.S. Census, American Community Survey Quick Facts, 2019. The American Community Survey (ACS) is an ongoing survey that provides vital information on a yearly basis about U.S. demographics . 5 Attachment A addition to tax revenue, downtowns are often viewed as the “heart and soul” of a community. Sustainability of small businesses that provide goods, services, and amenities that contribute to a community’s quality of life is another important goal. Demographic indicators such as income, age, ethnicity, education, and home ownership are also used by brand stores to determine the types of goods and services preferred by shoppers. The COVID-19 pandemic has profoundly changed shopper preferences and behavior in the following ways many of which will continue as the economy recovers: • Shoppers are placing less importance on brands. When there is a scarcity of goods, they buy whatever brand that is available. E-commerce has also opened a global market for online shoppers. • Shelter-in-place generally resulted in less concern about personal appearance that has translated into fewer purchases of clothing, personal services (hair, nails, etc.) and accessories. • There has been a strong response from shoppers to buy local but large format retailers like Costco, Target and Home Depot have generated the strongest sales and tax revenue during the pandemic. • According to the U.S. Department of Commerce, online sales increased 32.4 percent with U.S. retailers from 2019 to 2020 and represented 21.3% of total retail sales last year compared with 15.8% the year prior. Continuation of this trend does not bode well for brick-and-mortar retail which has been undergoing a restructuring prior to the onset of the COVID-19 pandemic. As noted in Professor Nicholas Bloom’s “work from home” presentation to the City Council in November 2020, remote work will have an impact on the recovery of small businesses, especially restaurants in downtowns that rely on office workers as weekday customers. III. What Types of Businesses Contribute to the Local Economy? Today, small businesses are truly the backbone of the U.S. economy. The Small Business Administration (SBA) estimates that small businesses with less than 500 employees make up 99 percent of the businesses in the U.S. and employ 47.1% of the private workforce. Firms with 20 to 99 employees have the largest share of employment and create the most jobs. Profiles of businesses in urban, more densely populated areas, show t hat most employ less than 20 workers and are primarily service businesses (either personal or professional services). This profile applies to businesses in the cities listed in the demographic chart on page three of this report. These small businesses are primarily locally serving and are an important component of a community’s ecosystem. Private sector employers also play a critical role in the local economy. Besides their workers patronizing businesses, many firms are involved in business-to-business commerce that 6 Attachment A generates sales/use tax for the general fund. “Traded sector” businesses are involved in manufacturing, consulting, engineering, technology, finance, etc., while the non -tradable sector consists of local serving businesses that include health, education, retail, and personal services. Traded sector businesses contribute the most value to the local economy because goods and services are sold in competition with firms in other states and countries. Traded sectors jobs are more permanent and pay higher wages which create a multiplier effect by supporting additional jobs inside and outside the local area which means stronger resilience during an economic downturn or natural disaster like the pandemic. Consequently, traded sector technology companies in Palo Alto, no matter the size, make significant contributions to the local economy. Government and healthcare jobs do not create the same multiplier effect as traded sector businesses because they are service jobs many of which pay lower wages than knowledge or manufacturing companies. The chart below shows a list of major employers located in Palo Alto and Mountain View. MOUNTAIN VIEW MAJOR EMPLOYERS NUMBER OF EMPLOYEES3 1. Google 23,324 2. Symantec 2,789 3. El Camino Hospital 2,500 4. Synopsys 2,377 5. Intuit 2,370 6. LinkedIn 1,177 7. Samsung 1,100 PALO ALTO MAJOR EMPLOYERS4 1. Stanford Healthcare 5,500 2. Lucile Packard Children’s Hospital 5,700 3. Stanford University 4,500 4. Veteran’s Affairs Palo Alto Healthcare System 3,900 5. VMWare, Inc. 3,500 6. SAP Labs Inc. 3,500 7. Space Systems/Loral 2,800 8. Hewlett-Packard Company 2,500 9. Palo Alto Medical Foundation 2,200 10. Varian Medical Systems 1,400 3 Source: City of Mountain View, 2020 4 Source: City of Palo Alto; list of major employers as of 2019. Some of the businesses may have downsized or relocated from the City prior to the pandemic. 7 Attachment A Employees from larger businesses support smaller business, as the latter cannot thrive on the patronage of residents alone. This is the ecosystem that has been broken by the pandemic, but it should recover albeit gradually as office workers return in the next year. The three major sources of general fund revenue for cities are sales/use tax, property tax, and transient occupancy tax (also called hotel tax). On average, sales and use tax revenue provides 30 percent of city general purpose revenue and often as much as 45 percent.5 The percentage for Palo Alto in fiscal year 2019-20 was 14.6% of the total $209,669,000 revenues in FY 2019- 20 (ending June 30, 2020). Before online shopping, sales tax was generated from point -of-sale transactions (a physical location). Cities aggressively recruited retailers tha t generated significant sales tax such as box stores and auto dealers. With the shift to E-commerce sales and the demise of brand retail stores, many cities now receive more sales tax revenue from county pools. The “Top Sales Tax Generators” for cities typically include large format stores such as Target, Costco, Walmart, and Home Depot. During the pandemic these retailers have been top performers due to home remodeling and construction of new housing. Costco. Apple stores, and Walmart are considered “recession proof” retail stores that perform better instead of others in good and bad economic times. If possible, the list of top sales tax performers for a city should reflect a balance of retail store types that include those that draw shoppers from other cities. Even if this a desired goal, some cities lack sites and trade areas that meet the requirements of retailers. Below is a chart that compares top sales tax generators for Palo Alto, Mountain View and Sunnyvale: City of Palo Alto: Top Sales/Use Tax Contributors, FY 2019 Anderson Honda Lucile Packard Children’s Hospital Tencent Apple Stores Macy’s Department Store Tesla Audi Palo Alto Magnussen’s Toyota of Palo Alto Tesla Lease Trust Bloomingdales Hp Enterprise Services Shell Service Stations McLaren San Francisco Tiffany & Company Bon Appétit Management Co. Neiman Marcus Department Store Urban Outfitters Hermes Nest Labs Varian Medical Systems Houzz Shop Nordstrom Department Stores Volvo Cars Palo Alto Integrated Archive Systems Stanford Outpatient Clinic Pharmacy 5 League of California Cities, A Primer on California City Finance,2016. 8 Attachment A City of Sunnyvale: Top Sales/Use Tax Performers, FY 2020 Bon Appetit Cepheid Chick Fil A Costco Gener8 HCL America Home Depot IHealth Lab Intuitive Surgical Sunnyvale Chrysler Dodge Jeep Ram Sunnyvale Ford Sunnyvale Volkswagen Target Juniper Networks Inc Keysight Technologies Larry Hopkins Honda Lockheed Martin Lowe's Nissan Sunnyvale Pine Cone Lumber Safeway (all Sunnyvale sites) Sierra Circuits Tesla Motors Thoughtspot Inc. Toyota Sunnyvale City of Mountain View: Top Sales/Tax Performers, as of December 2019 Allison BMW Benson Industries Best Buy Bon Appetit Boosted Boards Chevron Costco Financial Services Vehicle Trust Kiwi Crate Kohls Mr. Russell Lee Marshalls Mentor Graphics Mountain View Shell Omnicell Project Fi by Google REI Safeway Siemens Medical Solutions Synopsys Target Total Wine & More Valley Oil Walmart Zones Retailers that sell high end goods are prominent in Palo Alto’s list but not on Sunnyvale’s or Mountain View’s list. Sunnyvale and Mountain View do not have regional shopping centers, but they have large format retailers such as Target, Costco, and Home Depot. The Stanford Shopping Center is a destination retail center that draws international travelers as does Santana Row in San Jose. The ideal retail advantage is to have stores that draw shoppers from 9 Attachment A other nearby cities. Costco can be a destination retail store as there is not a store in every community. Business-to-business tax generators and those that sell online from one location (such as Poshmark and Shutterfly) are also highly desirable. However, online sellers can move the location where orders are taken so it is important for cities to monitor sales tax reports. In summary, the retail environment and shopper behavior are changing constantly which will continue to make sales/use tax a less stable source of revenue for cities. Diversification of retail and other businesses can help increase resilience to the variability of both the retail environment and shopper behavior. Equally important is the sustainability of small businesses which play an important role in enhancing quality of life for residents. Like many cities, most businesses in Palo Alto have less than fifty employees (see table below that highlights only retail businesses).6 They are primarily service businesses (professional and personal), retail and restaurants but there are also businesses in the “middle” that are involved in the trades, manufacturing/production, and supply of materials. These businesses pay higher wages than restaurants and retail. All have a role in a community’s ecosystem. Higher wage jobs are needed to support smal l businesses. Palo Alto Retail Businesses Number of Employees < 5 5 - 9 10 - 19 20 - 49 50 - 99 100-249 250 - 499 Total: Number of Retailers 119 46 34 21 13 6 1 240 Percentage of Total: 49.6% 19.2% 14.2% 8.8% 5.4% 2.5% 0.4% Source: Quarterly Census of Employment and Wages (QCEW) EDD - City of Palo Alto 2020 Q3 Preliminary. NAICS code 44 & 45. IV. What are Community Economic Development Assets or Advantages? Communities vary when it comes to assets that support a thriving economy. The list of assets below are not present in every community. Some are regional serving such as a port, airport, or public transit. The size and type of community (rural or metro) also determines the physical community assets and the types of businesses that start-up or locate in a community. ➢ Port, airport, public transit ➢ Downtowns ➢ Neighborhood business or commercial districts 6 The City of Palo Alto has a number of small retailers, with more than two-thirds employing fewer than nine employees. 90% of local retail employees have fewer than 50 employees. 10 Attachment A ➢ Industrial – R&D, production ➢ Office ➢ Diverse retail ➢ Rural – agriculture ➢ Labor force ➢ Consistent, streamlined, timely planning entitlement and building permit process Occupied and improved retail storefronts, industrial and office space are community assets that contribute to the quality of life, vibrancy, and desirability of a city as a location for businesses and residents. Cities like Redwood City and Palo Alto have an advantage in the current office market because they have an inventory of smaller size quality office space located in a downtown business district. Most cities struggle with the last advantage—the permit process – even though many cities have made improvements with online applications for many simple applications. COVID-19 and the resultant closure of city halls, which has required the use of technology to review plans and conduct inspections, should result in more efficient, timely processing but the volume of permits primarily for home remodeling and difficulty finding sufficient staff has slowed the process in many cities and created a huge backlog of applications. Palo Alto can check the boxes for most of the assets listed above which makes the City a desirable location for businesses and residents. V. Types of Economic Development Activities Implemented by Cities Most Bay Area cities have a program to help ensure economic and community vibrancy. The approach and program activities depend on the community’s economic development goals. Typical goals and activities of an economic development effort include: ➢ Small business assistance, especially for those located in downtown or neighborhood commercial districts. Thriving business districts with restaurants and retail are desirable amenities for residents. ➢ Business retention and expansion – helping all businesses start-up and expand capacity (sales) and achieve sustainability. ➢ Marketing and promotion of city for new businesses and development to fill vacant commercial and industrial space. ➢ Targeting of specific industry clusters to attract investment and higher quality jobs. For example, the cities of San Carlos and South San Francisco have a strong biotech company presence that is growing. New development sites will accommodate expanding biotech companies. 11 Attachment A ➢ Workforce development – ensuring there is a plentiful supply of qualified workers that meets the needs of businesses. ➢ Adequate supply of housing During the last economic expansion, Silicon Valley cities did not focus on business attraction like other California communities. Accommodating the start-up, growth and expansion of existing businesses was the priority of economic development in the valley. The reality was that not many non-high technology businesses choose to relocate to the area from outside the region or state unless there is a market imperative to have a presen ce. The high cost of doing business and living in the area are the primary reasons. Other communities in the state that need better jobs and investment have proactive efforts to attract new businesses, especially technology companies. Consequently, the approach depends on the goals of the community. A less proactive approach would have a basic program that could include business retention and expansion, providing access/information to resources and tools for businesses, and responding to requests for assistance from businesses. A more proactive approach can include efforts to attract specific types of businesses such as large format retail, relocation, or expansion of businesses to occupy vacant office space or allowing more flexibility in interpretation of planning and building requirements to accommodate the unique conditions of a project. This approach is common in communities that are built-out with few vacant sites. The following actual examples illustrate the three types of approaches and responses. SITUATION #1: Restaurants and businesses in a downtown are struggling to attract local customers. They have little time or money for marketing and promotions even use of social media. MORE PROACTIVE RESPONSE: City staff coordinate with the chamber of commerce to develop a “shop local” campaign that includes use of a web directory for all local businesses and restaurants that allows customers to easily find and contact the business. The web directory also facilitates transactions between the business and the customer and is easy for businesses to upload information. The chamber hosts the directory with financial support from one of the city’s larger businesses. The city and chamber partner to promote the directory to residents on social media and other communi cation channels. LESS PROACTIVE RESPONSE: City staff informs businesses there is nothing the city can do to assist businesses and encourages them to join the chamber so they can be included in the chamber directory. MIDDLE GROUND RESPONSE: The city encourages residents to shop local in email communications and social media posts. 12 Attachment A SITUATION #2: A large format retail store that generates significant sales tax has identified a site in the community. It is the only available site that meets their location requirements and is in the desired trade area. The site has challenges: it is smaller than what the retailer needs and, if possible, will require flexibility on parking and setback requirements. MORE PROACTIVE RESPONSE: City staff invites the business’s representative to meet for the purpose of working out a solution to the site’s limitations. Respecting zoning requirements and community process, a solution is found that includes adjustments to parking and setback requirements. LESS PROACTIVE RESPONSE: The city responds that based on its zoning requirements, no meeting is necessary because there are no alternatives and the business should find another location in the city. MIDDLE GROUND RESPONSE: The city cannot make the adjustments because of the zoning but would like to work with the applicant to find another location, if possible. The city would appreciate having a store. SITUATION #3: An auto dealership that has been in a city for thirty years needs to make modifications to its site to accommodate more new cars and expand the showroom and service center as required by corporate office of the automaker. 7 MORE PROACTIVE RESPONSE: City staff invites the dealer to a meeting to review the requested changes to determine if they can be accommodated. Staff is willing to use a more flexible interpretation, or clearly define the land use entitlement process, to allow the modifications so the dealer can continue its operations in the city. LESS PROACTIVE RESPONSE: Staff informs the dealer it needs to find another location that can accommodate the site modifications. MIDDLE GROUND RESPONSE: The city is not able to find a solution for this site but is open to pursuing other options for finding parking for new cars or the service center. Each city needs to determine what approach is best suited for the community. No city is required to have an active economic development program, but a formal program has staff who are experienced and understand the needs of businesses and achieving the community and economic goals. At the end of the day, many businesses will expand and locate in a 7 Auto dealers have specific operating and location requirements mandated by automakers. The automakers also govern the location and number of dealerships in a region. 13 Attachment A community without an active economic development program, but others may choose to find another location if there are too many challenges and issues that cannot be resolved. VI. Examples of City Economic Development Programs The following chart shows a sample of cities in the region that have economic development programs including the number of staff and types of activities. Some cities do not have a formal program or dedicated staff but respond as needed to business needs (such as the impacts on businesses from the pandemic) using staff from other city departments. CITY ECONOMIC DEVELOPMENT PROGRAM ACTIVITIES NUMBER OF STAFF Santa Clara No proactive program but City did support businesses in the pandemic by offering grants and responds to business inquiries and issues. No dedicated staff but a team from the city manager’s office responds to business needs Sunnyvale Assistant to the City Manager Economic Development Specialist • Business retention/expansion effort; • Facilitate and support businesses with permitting issues and new development • Proactive efforts to support downtown revitalization Two full time dedicated economic development staff Cupertino • Business retention/expansion effort; • Assist businesses with permitting issues and provides access to resources and tools for local businesses Half-time dedicated economic development contract position. Mountain View Economic Vitality Manager • Business retention/expansion effort • Facilitate and support businesses with permitting issues and new development 2.5 full time dedicated economic development staff; $70,000 ongoing budget for Economic Support; One- time allocation $275,000 for businesses impacted by COVID-19 14 Attachment A CITY ECONOMIC DEVELOPMENT PROGRAM ACTIVITIES NUMBER OF STAFF Business Development Specialist Part-time support • Proactive efforts to support downtown revitalization and relationship with major high-tech companies Los Altos Economic Development Coordinator • Business retention/expansion effort • Facilitate and support businesses with permitting issues and new development • Proactive efforts to support downtown businesses One full time dedicated economic development staff Menlo Park • Responsive assistance for local businesses No dedicated full time economic development staff. There was a full- time housing/economic development position three years ago but it not currently filled. Redwood City Economic Development Manager Part-time support • Business retention/expansion effort; • Facilitate and support businesses with permitting issues and new development • Proactive efforts to support downtown businesses 1.5 full time dedicated economic development staff; One-time allocation of $450,000 for assistance to businesses impacted by COVID- 19. No ongoing funding allocation. San Carlos Economic Development & Housing Manager Economic Development Coordinator • Business retention/expansion effort • Facilitate and support businesses with permitting issues and new development such as biotech expansions • Proactive efforts to support downtown businesses Two full time dedicated economic development staff Burlingame Economic Development & • Business retention/expansion effort • Facilitate and support businesses with permitting One full time dedicated economic development staff 15 Attachment A CITY ECONOMIC DEVELOPMENT PROGRAM ACTIVITIES NUMBER OF STAFF Housing Specialist issues and new development • Proactive efforts to support downtown businesses Belmont The city responds to inquiries and business issues as needed. No dedicated economic development staff Fremont Economic Development Director Two Economic Development Managers Economic Development Specialist • Business retention/expansion effort; • Facilitate and support businesses with permitting issues • Proactive efforts to build a new downtown • Facilitate growth of advanced manufacturing sector and innovative technology companies 4.5 full time economic development positions but only two are currently filled. Each of the cities above have different economic strengths and weaknesses and, consequently, different goals. Most of the cities have downtowns which are considered valued amenities by the communities. They have office and industrial parks and the presence of iconic high-tech companies. City staff have established mutually beneficial relationships with these companies as part of business retention and expansion. As noted in the table above, most cities have at least one permanent staff position. Depending on skill and experience required, economic development titles range from economic development coordinator, economic development specialist, or economic development manager/director. Below is a list of recent recruitments for economic development staff: CITY POSITION SALARY RANGE MINIMUM QUALIFICATIONS City of Mountain View Economic Vitality Manager $126,553 to $204,830 • Five years of increasingly responsible experience in economic development, redevelopment, real estate financing, and planning • one year of supervisory responsibility • Bachelor’s degree from an accredited college or university with major course work 16 Attachment A CITY POSITION SALARY RANGE MINIMUM QUALIFICATIONS in urban economics, finance, business or public administration or related fi elds • Competitive candidates will possess general knowledge of real estate and land use laws • Experience working in a municipal environment, interacting with elected and/or appointed officials and familiarity with the Silicon Valley economy City of Morgan Hill Economic Development Director/Manager $125,832 to $217,200 • Bachelor’s degree or equivalent with course work in urban planning, economics, business administration, marketing, public administration, political science or related field • Master’s degree in the above fields is highly desired • Five years’ experience as former economic development manager or community development including two years at a supervisory or management level City of San Carlos Economic Development Coordinator $107,353 to $130,476 • Bachelor’s degree in planning, economics, political science, public administration, or business administration • Three to five years experience in economic development, real estate or real estate finance. • Graduate degree in appropriate field may substitute for one year experience Typical roles and responsibilities for each of the positions listed above include the following: (Note that for the economic development manager positions, the roles and responsibilities are defined at a more strategic, leadership level.) Economic Vitality Manager (Mountain View): 2.5 staff • Build and maintain effective relationships with both internal and external stakeholders and provide outstanding customer orientation. • Inspire team members to perform beyond what they believe they are capable of. • Cultivate followership and excitement around goals that advance the big picture of an organization. • Research, evaluate and introduce create and groundbreaking ideas that best serve the business community while supporting the vision for the City. 17 Attachment A Economic Development Manager (Morgan Hill) – 1 staff • Create economic development policies, programs and practices and showcase leadership across departments and with external stakeholders. • Ensure that land development, business attraction and retention, job creation, commercial growth, housing, and amenities to round out and balance the community are strategic and consistent with the Council's goals, priorities, and policies. • Ensure that economic Development accomplishments are measurable, create high - value jobs, increase general fund revenues, tourism, retail and commercial investment. • Leads and directs on-going business retention and attraction efforts in a proactive manner, ensuring increased industry jobs, commercial/industrial investment, and economic growth in Morgan Hill. • Conduct outreach to affected parties on development issues, market constraints and opportunities, and economic opportunity is paramount to good governance. • Ensure that all City departments are engaged to become "Ambassadors" for ec onomic development and to facilitate permit processing of economic development projects. • Provide timely, well documented studies and analyses provide a sound foundation for policy decision recommendations by the economic development team and policy decision making by the City Council Economic Development Coordinator (San Carlos) 2 staff (manager and coordinator) • Develop and implement programs relating to revitalization, business recruitment/retention, economic development, and job creation. • Administer economic development projects and programs from conception, design, budget development, implementation, and financial overview, to final effectiveness evaluation. • Act as liaison between developers and businesses in the evaluation of real estate developments, and landlords/brokers and potential tenants in pursuing leasing of commercial vacancies. • Plan, schedule and coordinate real estate, marketing, site development, and business development programs, including developing marketing strategy, evaluating financing, and preparing public information materials. • Negotiate development transactions consistent with City policies. • Acquire, manage and dispose of property on behalf of the City. • Resolve legal, financial, environmental, and technical real estate issues involved in development projects and commercial leasing opportunities. 18 Attachment A • Encourage and facilitate development by communicating with citizens groups, individuals, and public and private organizations. • Conduct field investigations of development sites. • Collect, compile, organize, and analyze data for use in economic development programs and development objectives. • Prepare comprehensive reports, proposals, and studies related to economic development opportunities and implementation activities. • Represent the City at a wide variety of community meetings. • Monitor legislation related to economic development and make recommendations concerning policy and procedural improvements. • Develop contracts, retain, and coordinate the work of engineers, appraisers, architects, etc. for economic development projects. • Identify and prepare applications for outside funding sources (grants). The roles and responsibilities for San Carlos’ economic development coordinator detail more specifically the implementation tasks associated with a comprehensive economic development program. Mountain View and Morgan Hill’s programs replicate many of these at an implementation level. Very few academic institutions offer a major or minor in economic development. Most economic development professionals have degrees or a background in planning, public administration, economics, or real estate and learn the fundamentals of economic development on the job augmented by coursework offered by professional associations. Even if the candidate is qualified at the manager or director level, he/she may not have specific expertise in real estate economics, marketing and promotions and strategic plann ing. This may limit the ability of the city to conduct in-depth analysis on these topics. In cases when the in- house employee does not have that specific expertise, cities often use outside consultants for discrete tasks that warrant greater research and analysis or are more complex. The costs for consultants on such tasks vary depending on the task and the size of a city. An economic benefits analysis for a development can cost between $25,000 to $50,000. The cost for something more complex like an economic development strategy for a city ranges from $50,000 to $150,000 or more. Not having permanent staff does not preclude a city from providing basic economic development services. Some cities rely on dispersing the function throughout the organization, but this necessarily limits the scope of work. Other cities may use firms to augment the function. Currently only two firms provide economic development staff who their employees on a contract basis to a city. Staff work should be done by an employee of eith er the provider or the city not as an independent contractor because of federal (IRS) regulations that define the work of contractors. 19 Attachment A Depending on how proactive the economic development program is, some cities allocate funds annually for implementation activities (such as special studies, promotional tools for downtowns or events, and other related activities), but in many cities, staff implement a program without a dedicated budget. Funds are appropriated as needed or taken from another department budget. Each city’s approach to economic development is unique depending on its goals and city council’s priorities. VII. What Kind of Economic Development Effort Works for Palo Alto? Assessing a city’s community and economic strengths helps define goals and an appropriate approach to economic development. Opportunities can arise from strengths and weaknesses. A high-level scan of Palo Alto’s economic strengths (including assets) shows the city has many advantages of a major metro center but on a smaller town sca le which is very appealing to knowledge companies and their employees. Strengths: • The City offers a high quality of life for residents with desirable amenities such as parks, regional retail, defined downtown with diverse, unique restaurants and retail, and a diverse range of commercial (office and retail) space. • Proximity to Stanford University and the research park. • Availability of professional services • Proximity to two major airports • Walkability and “bike-ability” of the city • Access to Caltrain Weaknesses: • Perceived availability of parking in the downtown (pre-COVID) • Adjacency to major freeways • High cost of housing (true of every city in the Bay Area) • Limited verticality if high-rise space is in demand or preferred by businesses In terms of priority economic development goals, as previously explained, they are different for each community. For Palo Alto it can be one goal such as: Ensure the City has strong, diverse business base that supports a high quality of life for residents. The types of city actions that support this goal include: 1. Business retention/expansion efforts 20 Attachment A • Contact the top sales tax generators and employers to determine how they are doing and if there are any specific issues the City can help resolve; extend the City’s appreciation for their contribution to the community. • Small businesses outreach and support • Email a monthly newsletter to businesses with current information about business resources such as federal and state grants and loans; free webinars on marketing and promotions offered by various private and public providers; and information about changes in City regulations or other information that concerns local businesses. • Create a business resource webpage that has same information in newsletter as well as basic information about the City (as provided in the City’s budget report). • Distribute an annual survey of businesses asking how they are doing, what resources are helpful, and how can the City assist them? 2. Monitor the City’s internal sales/use tax revenue reports to note any changes in revenue from the top sales tax generators. Often City staff can work with its sales tax consultants and the business to make corrections. 3. Monitor retail trends and new store formats to see if any concepts might be appropriate for Palo Alto to help fill vacant retail space. Not all vacant space is represented by brand brokerage firms and formally listed. There are many times when retail stores in search of a location are not aware of available spaces especially if they are not formally on the market. These are City activities and actions that can help businesses thrive which, in turn, achieves the goal of supporting a high quality of life for residents. Metrics that annually measure the effectiveness of these efforts include: • Increase in sales tax or TOT because of a new retail store or hotel that located in the City with the assistance of staff; • The number of new retail or office businesses that fill vacant space because of the City’s efforts; • An annual survey of businesses to determine their current needs, how they are doing, effectiveness of City business retention/expansion efforts. The continuous changes occurring in the world today ensures there is no certainty or guarantees about the sources of funding cities rely on to provide the high-quality services and physical infrastructure improvements residents expect. An economic development program can be scaled up or down depending on the goals, the economy; community priorities; and the City’s budget. Efforts can be proactive or less proactive. Many of these actions listed above 21 Attachment A have already been implemented by the City. The facilitated discussion on goals and current economic strengths and weaknesses that follows the presentation can help the Council determine if the City needs to enhance its economic recovery efforts. A city can also choose to let economic development happen organically on its own momentum. There is no “right” or “wrong” way. In conclusion, the information provided in this report is intended to help the City Council decide what role, if any, economic development can play in the City of Palo Alto and what resources may be needed for implementation. 22 Attachment A Attachment I: Biographies of Presenters Aaron Aknin is a Principal and Co-Owner of Good City Company. He has nearly two decades of Bay Area municipal experience, including serving in an executive capacity for several different Peninsula cities, including Redwood City, Palo Alto and San Bruno. He is a membe r of the American Institute of Certified Planners (AICP) and the American Planning Association. Leslie Fujino-Parks has led and assisted with a diverse range of programs in economic development, workforce development, redevelopment, and affordable housing. In addition to her consulting work for urban and rural communities in California and the U.S., Leslie has served as Director of Economic Development for the City of San José; Director of Downtown and Industrial Development for the San José Redevelopment A gency; Director of Community Development for the City of San Carlos; Economic Development Coordinator for the City Burlingame; and Interim Director of the San Mateo County Workforce Development Program. She has also served as interim manager for the City of Redwood City’s housing and economic development programs. Most recently she developed a “Small Business Action Plan” for the City of Mountain View and assisted with a “Business Recovery Plan” for the City of Vacaville. She is currently providing use tax consulting services to the cities of Menlo Park, Burlingame, and San Jose. Leslie is also a trained facilitator in consensus building, community engagement, public process, and strategic planning. The Good City Company is pleased to have the opportunity to make a presentation and facilitate a discussion on economic development. CITY OF PALO ALTO OFFICE OF THE CITY ATTORNEY June 1, 2021 The Honorable City Council Palo Alto, California Adoption of an Ordinance Establishing Board and Commission Term Limits, Consolidating Recruitment to May of Each Year, and Codifying the Human Relations Commission's Existing Role of Recommending Grant Funding Recommendation To implement prior Council direction, staff recommends Council approve the attached ordinance, with adjustments on policy issues as desired, to amend various sections of the Palo Alto Municipal Code in order to: (1) consolidate board and commission recruitments to May; (2) create term limits for board and commission members; and (3) codify existing duties of the Human Relations Commission. Background The City has several statutorily created boards and commissions that provide advice and recommendations to the Council, including the Planning and Transportation Commission (PTC), the Human Relations Commission (HRC), the Utilities Advisory Commission (UAC) and others. On November 30, 2020, Council adopted the following motion as part of an effort to enhance coordination with the boards and commissions, update operations, and increase support and training for board and commission members [Link to staff report and minutes]: MOTION AS AMENDED: A. Adopt the City of Palo Alto Boards, Commissions, and Committees Handbook; and B. Use the Architectural Review Board Application as a template for all Boards and Commission Applications; C. Direct Staff to take the steps necessary to implement these changes; D. Update Human Relations Commission (HRC) description to include HSRAP and Emerging Needs Study; E. Modify term limits to three terms for positions on the Historic Resources Board and Architectural Review Board, and two terms for all other BCCs; F. [provision was not adopted] G. Apply term limits to currently serving BCC members who would be eligible to re -apply for an additional term; H. Require staff reports be provided to the BCCs seven days in advance of each meeting. In addition, Council has discussed moving board and commission appointments from December to May on several occasions. Staff could not find a record of a motion directing this change. Staff has included this change in the attached draft ordinance for the Council’s consideration. Page 2 Discussion Staff returns with the attached ordinance to implement term limits for board and commission members. This ordinance will also consolidate board and commission recruitments to May, changing the current practice of having some recruitments in December. Lastly, the ordinance codifies the Human Relation Commission’s existing duties of reviewing and making grant award recommendations to the City Manager and the City Council. Term Limits for Boards and Commissions Consistent with Council’s motion above, this ordinance implements consecutive term limits for the following boards and commissions: Two Consecutive Terms Three Consecutive Terms • Planning and Transportation Commission • Human Relations Commission • Parks and Recreation Commission • Public Art Board • Utilities Advisory Commission • Architectural Review Board • Historic Resources Board Note: All of the boards and commissions above have 3 year terms, except for the Planning and Transportation Commission, which is 4 years per term. The draft ordinance proposes the following rules to govern these term limits: (a) A member will be deemed to have served a full term if he or she serves more than half of the term. For example, more than half the term would be 18 months plus one day of service for a term scheduled to last three years. (This mirrors the Charter provision for Council terms.) (b) A member’s service that began on or before May 31, 2021 shall count only for those members who served for at least one day on a board or commission between June 1, 2020 and May 31, 2021, up to a maximum of one term. (c) A member who has served up to the term limit may continue in a “hold over” status, if a replacement is not timely appointed, for a maximum of six months past the scheduled end of his or her second term. (d) A member who has served up to the term limit cannot be appointed to the same board or commission for one year. The draft ordinance proposes that term limits be effective as of June 1, 2021. However, Council could decide to change this to another date in the future. Similarly, Council could consider changes to the rules above, including: (a) the length of service that constitutes serving a full term; (b) the length of lookback period for service prior to the eff ective date; (c) the length of hold-over period past the end of the term limit; and (d) the period in which a member cannot be reappointed to the same board or commission. Consolidation of Board & Commission Recruitments to May Page 3 Currently, PAMC section 2.16.070 assigns each board and commission to either May or December recruitment. For those commissioners appointed during the May recruitment period, their terms begin on June 1 (or as soon as appointed thereafter). For those commissioners appointed during the December recruitment period, their terms begin on December 16 (or as soon as appointed thereafter). Terms are fixed and end on either May 31 or December 15. Current Recruitment Schedule (PAMC 2.16.070) May Recruitment (Term begins June 1, ends May 31) December Recruitment (Term begins December 16, ends Dec. 15) • Human Relations Commission • Planning and Transportation Commission • Public Art Board • Utilities Advisory Commission • Architectural Review Board • Historic Resources Board • Parks and Recreation Commission • Planning and Transportation Commission The ordinance will shift all the recruitments for the boards and commissions to May only, and all terms will begin on June 1 (or shortly thereafter if appointments are made after that date) and end on May 31 three years later (or four years in the case of the PTC). Current members of boards and commissions on the December recruitment schedule will have their terms extended by approximately five months to end on May 31 to coincide with the May recruitment period. For example, a member of the PRC was appointed on December 16, 2019. His or her term is scheduled to end on December 15, 2022. Under this ordinance, his or her term will be extended to May 31, 2023. Should a board or commission have a vacancy outside of the normal recruitment cycle, the Council may direct the City Clerk to hold a special recruitmen t. Codify Human Relations Commission’s Existing Grant Recommendation Responsibilities This ordinance will codify the Human Relations Commission’s existing duties of recommending grantees under the Human Services Resource Allocation Process (HSRAP), the Community Development Block Grant (CDBG), and the Emerging Needs Fund. Resource Impact The consolidation of all board and commission recru itments to May is expected to take a larger share of both staff and Council time in the weeks preceding in order to recruit, interview, and appoint candidates to all of the boards and commissions. This work effort will no longer be needed in December. Environmental Review The City Council finds that adoption of this ordinance is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA guidelines section Page 4 15061(b)(3) because it can be seen with certainty that t his ordinance will not have a significant effect on the environment. ATTACHMENTS: • Attachment A: Ordinance Establishing Board & Commission Term Limits, Consolidating Recruitment to May of Each Year, and Codifying the Human Relations Commission's Existing Roles (PDF) Department Head: Molly Stump, City Attorney Page 5 *NOT YET APPROVED*   1   229_20210519_ts24  Ordinance No. _____    Ordinance of the Council of the City of Palo Alto Amending Sections of Title 2  (Administrative Code) of the Palo Alto Municipal Code to Consolidate the  Appointment of Members to Boards and Commissions to May of Each Year;   Establish Term Limits to Boards and Commissions; and Codify Existing Duties of  the Human Relations Commission      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 has several statutory boards and commissions.  See Palo Alto Municipal Code  Chapters 2.18 et seq.;  B. Existing PAMC section 2.16.070 requires that the City Council make regularly‐scheduled  appointments to boards and commissions in December and May of each year.  Each  board or commission is assigned to one of those months;  C. The City Council intends to stop making appointments to boards and commissions in  December and have all regularly‐scheduled board and commission appointments occur  in May;  D. The City Council intends to impose term limits to members of boards and commissions;  and   E. The City Council intends to codify the Human Relations Commission’s existing duties of  making grant recommendations under various grant programs.    SECTION 2.  Section 2.16.070 (Schedule of appointments) of Chapter 2.16 (Boards and  Commissions Generally) of Title 2 (Administrative Code) is hereby amended as follows  (additions are in underline, deletions are in strikethrough):    2.16.070   Schedule of appointments.     (a)   The City Council shall review applications to fill vacancies in the following boards and  commissions in May of each year:     (1)   Human Relations Commission (Chapter 2.22)     (2)   Public Art Commission (Chapter 2.18)     (3)   Utilities Advisory Commission (Chapter 2.23)     (4)   Architectural Review Board (Chapter 2.21)     (5)   Historic Resources Board (Chapter 2.27)     (6)   Parks and Recreation Commission (Chapter 2.25)     (7)   Planning and Transportation Commission (Chapter 2.20)    (b)   The City Council shall review applications to fill vacancies in the following boards and  commissions in December of each year:     (1)   Architectural Review Board (Chapter 2.21)     (2)   Historic Resources Board (Chapter 2.27)  *NOT YET APPROVED*   2   229_20210519_ts24     (3)   Parks and Recreation Commission (Chapter 2.25)     (4)   Planning and Transportation Commission (Chapter 2.20)     (cb)   The City Council shall fill vacancies in all other boards and commissions in May or  December of each year,  or at another time, at its discretion.     (dc)   The City Council may fill mid‐term vacancies during the next regularly scheduled  recruitment for the board or commission or may hold a special recruitment, at its discretion.  Special recruitments shall be subject to the requirements of Section 2.16.060.      SECTION 3.  Chapter 2.16 (Boards and Commissions Generally) is hereby amended to add new  section 2.16.080 (Term limits) as follows:    2.16.080   Term limits.  Effective June 1, 2021, no person may serve more than two consecutive terms of office as a  member of the same board or commission.  This section shall apply to the boards and  commissions listed in section 2.16.070(a), except for the Historic Resources Board and  Architectural Review Board, in which no person may serve more than three consecutive terms  of office as a member of the same board or commission.   (a) For the purposes of this section, a  member will be considered to have served a term of  office under this section if he or she serves more than half of thea standard term. For  boards and commissions with three‐year terms, half of the term shall be 18 months.  For  boards and commissions with four‐year terms, half of the term shall be two years.      (b) A member’s service that began on or before May 31, 2021 shall count under the  provisions of this section only for those members who served for at least one day on a  commission between June 1, 2020 and May 31, 2021, up to a maximum of one term.    (c) A member who has served two consecutive terms of office may remain as a member of  the same commission for up to six months past the end of the term if no replacement is  appointed or until a replacement is appointed, whichever comes first.    (d) A member who has served two consecutive terms of office shall not be appointed to the  same board or commission within one year of the last date of service.      SECTION 4.  Section 2.18.040 (Term of office) of Chapter 2.18 (Public Art Commission) is hereby  amended as follows:    2.18.040   Term of office.     Terms of office on the Public Art Commission shall be three years. Commission appointments  shall be staggered so that three (3) members are appointed in 2018 and every three years  thereafter, and four (4) members are appointed in 2017 and every three years thereafter.  Effective January 1, 2016, terms of office due to expire on April 30 of each year shall be  extended to expire on May 31 of the same year, and thereafter terms Terms of office shall  commence on the first day of June. If a successor is unavailable, a member may remain in office  until his or her successor is appointed, subject to the limits in section 2.16.080.    *NOT YET APPROVED*   3   229_20210519_ts24  SECTION 5.  Section 2.20.020 (Term of office) of Chapter 2.20 (Planning and Transportation  Commission) is hereby amended as follows:    2.20.020   Term of office.     Terms of office on the Planning and Transportation Commission shall be four years. Effective  January 1, 2016, terms of office due to expire on October 31 of each year shall be extended to  expire on December 15 of the same year, and thereafter terms of office shall commence on the  sixteenth day of December Effective June 1, 2021, terms of office due to expire on December  15 of each year shall be extended to expire on May 31 of the following year, and thereafter  terms of office shall commence on the first day of June. If a successor is unavailable, a member  may remain in office until his or her successor is appointed., subject to the limits in section  2.16.080.  SECTION 6.  Section 2.21.025 (Term of office) of Chapter 2.21 (Architectural Review Board) is  hereby amended as follows:    2.21.025   Term of office.     Terms of office on the Architectural Review Board shall be three years. Effective January 1,  2016, the terms of office due to expire on October 31 of each year shall be extended to expire  on December 15 of the same year, and thereafter terms of office shall commence on the  sixteenth day of December. Effective June 1, 2021, terms of office due to expire on December  15 of each year shall be extended to expire on May 31 of the following year, and thereafter  terms of office shall commence on the first day of June. If a successor is unavailable, a member  may remain in office until his or her successor is appointed., subject to the limits in section  2.16.080.    SECTION 7.  Section 2.22.020 (Term of office) of Chapter 2.22 (Human Relations Commission) is  hereby amended as follows:    2.22.020   Term of office.     Terms of office on the Human Relations Commission shall be three years. Effective January 1,  2016, terms of office due to expire on April 30 of each year shall be extended to expire on May  31 of the same year, and thereafter termsTerms of office shall commence on the first day of  June. If a successor is unavailable, a member may remain in office until his or her successor is  appointed., subject to the limits in section 2.16.080.    SECTION 8.  Section 2.23.030 (Term of office) of Chapter 2.23 (Utilities Advisory Commission) is  hereby amended as follows:    2.23.030   Term of office.     Terms of office on the Utilities Advisory Commission shall be three years. Effective January 1,  2016, terms of office due to expire on April 30 of each year shall be extended to expire on May  31 of the same year, and thereafter termsTerms of office shall commence on the first day of  June. Commission appointments shall be staggered so that in each three‐year cycle, two  *NOT YET APPROVED*   4   229_20210519_ts24  members are appointed one year, two members are appointed the next year, and three  members are appointed the next year. If a successor is unavailable, a member may remain in  office until his or her successor is appointed., subject to the limits in section 2.16.080.    SECTION 9.  Section 2.25.030 (Term of office) of Chapter 2.25 (Parks and Recreation  Commission) is hereby amended as follows:    2.25.030   Term of office.     Terms of office on the parks and recreation commission shall be three years. Commission  appointments shall be staggered so that in each three‐year cycle three members are appointed  to serve during the first year, four members are appointed to serve during the second year, and  no members are appointed to serve during the third year. Effective January 1, 2016, terms of  office due to expire on October 31 of each year shall be lengthened to expire on December 15  of the same year, and thereafter terms of office shall commence on the sixteenth day of  December. Effective June 1, 2021, terms of office due to expire on December 15 of each year  shall be extended to expire on May 31 of the following year, and thereafter terms of office shall  commence on the first day of June. If a successor is unavailable, a member may remain in office  until his or her successor is appointed., subject to the limits in section 2.16.080.  SECTION 10.  Section 2.27.020 (Term of office) of Chapter 2.27 (Historic Resources Board) is  hereby amended as follows:    2.27.020   Term of office.     Terms of office on the Historic Resources Board shall be three years. Terms shall be staggered  so that three positions are refilled one year, and four positions are refilled two years later.  Effective January 1, 2016, terms of office due to expire on October 31 of each year shall be  extended to expire on December 15 of the same year, and thereafter terms of office shall  commence on the sixteenth day of December. Effective June 1, 2021, terms of office due to  expire on December 15 of each year shall be extended to expire on May 31 of the following  year, and thereafter terms of office shall commence on the first day of June. If a successor is  unavailable, a member may remain in office until his or her successor is appointed., subject to  the limits in section 2.16.080.  SECTION 11.  Section 2.22.060 (Authority) of Chapter 2.22 (Human Relations Commission) is  hereby amended to add new subsection (g) as follows:    2.22.060   Authority.     Upon making a finding pursuant to Section 2.22.050(a), the commission may act as follows:     (a)   To foster public awareness and understanding of human relations problems by any  means of disseminating information including, but not limited to, educational programs and  printed and electronic media;     (b)   To facilitate resolution of problems or improvement of conditions within the jurisdiction  of the commission by encouragement, persuasion and mediation and by pointing out private or  public agencies which might provide assistance;  *NOT YET APPROVED*   5   229_20210519_ts24     (c)   To make such studies which, in the judgment of the commission, might aid in affecting  matters within the jurisdiction of the commission;     (d)   To recommend local legislation or other action to the council and to encourage the  council to support or oppose state or federal legislation or regulation relating to matters within  the jurisdiction of the commission;     (e)   To coordinate programs of the commission with similar programs by private and public  agencies and organizations; and     (f)   To recommend or oppose legislation other than that of the city, provided that the city  council has not taken an official position with respect to such legislation, and provided further  that any communication, whether oral or written, from the commission concerning such  legislation clearly indicates that such recommendation or opposition is that of the commission  and is not necessarily that of the city council.; and     (g)   To recommend grantees under the Human Services Resource Allocation Process,  Community Development Block Grant, and Emerging Needs Fund.      SECTION 12.   If any section, subsection, sentence, clause, or phrase of this Ordinance is for any  reason held to be invalid or unconstitutional by a decision of any court of competent  jurisdiction, such decision shall not affect the validity of the remaining portions of this  Ordinance.  The City Council hereby declares that it would have passed this Ordinance and each  and every section, subsection, sentence, clause, or phrase not declared invalid or  unconstitutional without regard to whether any portion of the Ordinance would be  subsequently declared invalid or unconstitutional.    SECTION 13.   The Council finds that adoption of this Ordinance is exempt from the California  Environmental Quality Act as it is not a “project” within the meaning of CEQA.        //    //    //    //    //    //    //    //    //  *NOT YET APPROVED*   6   229_20210519_ts24  SECTION 14.    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:      ____________________________                           ____________________________  Deputy City Attorney     City Manager                                                                                         ____________________________  Director of Community Services      ____________________________  Director of Planning and Development  Services      ____________________________  Director of the Office of Transportation