HomeMy WebLinkAbout2021-06-01 City Council Agenda PacketCity Council
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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
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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.
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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
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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
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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
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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.
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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,
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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;
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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;
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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
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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.
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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”.
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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
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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:
[. . .]
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(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
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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
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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
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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.
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(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.
//
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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),
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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:
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(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
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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
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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.
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(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;
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(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
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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.
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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
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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.
[. . .]
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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.
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(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.
//
//
//
//
//
//
//
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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
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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
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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
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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.
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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.
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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
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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
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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.
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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.
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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.
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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.
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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
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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
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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)
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(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.
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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
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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;
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(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.
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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