HomeMy WebLinkAbout2022-06-20 City Council Action MinutesCITY COUNCIL
ACTION MINUTES
Page 1 of 8
Special Meeting
June 20, 2022
The City Council of the City of Palo Alto met on this date in the Council Chambers and
by virtual teleconference at 3:00 P.M.
Present In-person: Burt, Cormack, DuBois, Filseth, Kou, Stone, Tanaka
Present Virtually: None
Absent: None
Closed Session
1. CONFERENCE WITH CITY ATTORNEY-POTENTIAL LITIGATION Subject:
Threatened litigation regarding interpretation and application of non-
conforming use provisions for 340 Portage and associated addresses, as set
forth in September 10, 2021 letter from Sobrato Organization Authority:
Potential Exposure to Litigation Under Government Code Section
54956.9(d)(2) One Case, as Defendant
MOTION: Council Member DuBois moved, seconded by Council Member Stone to go
into Closed Session.
MOTION PASSED: 7-0
Agenda Changes, Additions and Deletions
Oral Communications
Consent Calendar
Council Member Kou registered a no vote on Agenda Item Number 24, 26.
Council Member Cormack registered a no vote on Agenda Item Number 24, 27
Council Member Tanaka registered a no vote on Agenda Item Number 6, 07, 10, 23,
27
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ACTION MINUTES
Page 2 of 8
Sp. City Council Meeting
Action Minutes: 06/20/2022
MOTION: Council Member DuBois moved, seconded by Mayor Burt to approve
Agenda Item Numbers 2-27.
2. Approve Minutes from the June 6, 2022 City Council Meeting
3. Approval of Contract Number C23181853A With Accurate Structural
Incorporated for a Total Not-to-Exceed Amount of $2,405,369 for the
Installation of 9 Electric Station Perimeter Security Lighting/Camera Additions
4. Approval of a Professional Services Agreement With Carollo Engineers, Inc. for
Development of a One Water Plan for the City of Palo Alto Contract Number
C23183089 in the Total Amount Not-to-Exceed $559,000
5. Approval of the Fiscal Year 2023 Investment Policy
6. Approval of a Contract with EPI-USE Labs, LLC to Host Online the City's SAP
ERP System and Provide Related Services in an Amount Not to Exceed
$2,214,140 (including of $2,014,140 for Basic Services and a Contingency of
$200,000 for Additional Services Approved by City via Task Order) over a
Three-and-a-Half-Year Term
7. Approval of contract number C231833249 with Digitech Computer LLC to
provide Ambulance Billing Services in the amount of $140,000 a year not to
exceed $700,000.
8. Approval of Amendment No. 2 to Contract No. C18168154 with SWA Services
Group, Inc. for Janitorial Cleaning and Maintenance Services in Order to Extend
the Term by Six Months through February 28, 2023 and Increase the
Compensation by $1,242,777 for a New Total Not-to-Exceed Amount of
$12,272,542.
9. Approval of a New Dark Optical Fiber License Agreement With the Palo Alto
Unified School District as a Customer, From December 17, 2022 Through June
30, 2027
10. Approval of Early Renewal of Contract Number C20176092 With Equinix LLC
for Addition of $53,384 for New Service Connections and Maintenance,
Approval of Past Charges of $16,628 for Increased Services, and Approval of
Addition of $50,000 for City Manager Authority to Add Fiber Services, for a
Total Not-to-Exceed Amount of $745,476 from $625,465
11. Approval of Amendment Number 1 to Contract Number C21178372C with C&S
Engineers, Inc. for the Airport Apron Reconstruction Project (AP-16000) in the
Amount of $215,023 for a New Total Not-to-Exceed Amount of $1,715,023,
and approval of a Budget Amendment in the Airport Fund in Fiscal Year 2022
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ACTION MINUTES
Page 3 of 8
Sp. City Council Meeting
Action Minutes: 06/20/2022
12. Adoption of Resolution 10054 Implementing the Water Use Restrictions in
Stage II of Palo Alto’s Amended 2020 Water Shortage Contingency Plan in
Compliance With the State Water Resources Control Board’s May 24, 2022
Emergency Water Conservation Regulations, and Restricting Potable Irrigation
to No More Than Two Days a Week, with Exceptions for Tree Health, Health
and Safety, and Certain Non-Residential Zone Irrigation
13. Approval and Authorization for the City Manager to Execute Purchase Orders
for Electric Distribution Transformers With Prequalified Vendors in an Amount
up to $2,000,000 Annually Between FY 2022 - FY 2026 in a Total Not-to-
Exceed Amount of $10,000,000
14. Policy and Services, Office of the City Auditor and Staff recommends that City
Council Approve the Building and Permit Review Report
15. Consent of the Macias Gini & O’Connell’s Single Audit Report for the Year Ended
June 30, 2021
16. Approval of an Agreement Between Santa Clara Valley Water District and the
City of Palo Alto for Administration and Funding of Water Conservation and
Stormwater Rebate Programs for a Total-Not-to-Exceed Amount of $675,000
Over a Three Year Term Ending June 30, 2025
17. Approval of Professional Services Contract Number C22184801 with
Construction Testing Services for On-Call Construction Dewatering and
Deconstruction Services in an Amount Not to Exceed $339,480 Over a 3-year
Term.
18. Approval of Contract No. C22184848 with Salas O'Brien Engineers, Inc., for a
Total Amount Not to Exceed $110,212, for Engineering Design Services for the
Municipal Service Center Lighting, Mechanical, and Electrical Improvements
Project Capital Improvement Program Project (PF-16006)
19. Approve Contract C22184489 with Martina Entriken Not to Exceed $330,000
for a Term of Three Years to Provide a Preschool/Toddler Program
20. Adoption of Resolution 10055 Proposing the Appropriations Limit for Fiscal
Year 2023
21. Approval of Lease Agreement between Palo Alto Unified School District
(Landlord) and City of Palo Alto (Tenant) for Extended Day Care Sites for 12
months, Rent Not to Exceed $707,676 per Year
22. Policy and Services Committee Recommendations that the City Council
Support a Pending State Bill Regarding Orderly Meeting Conduct (Senate Bill
1100) and Support with Amendments a Bill Regarding Children’s Camp
Regulations (Assembly Bill 1737)
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ACTION MINUTES
Page 4 of 8
Sp. City Council Meeting
Action Minutes: 06/20/2022
23. SECOND READING: Adoption of Ordinance 5552 Amending Palo Alto
Municipal Code Section 18.52.070 (Parking Regulations for CD Assessment
District) to Continue a Temporary Ban on Eligibility of Commercial Office Uses
Above the Ground Floor to Participate in the Downtown Parking In-Lieu
Program and Making Clerical Amendments to PAMC Section 16.57.010
(Applicability) in Chapter 16.57 (In-Lieu Parking Fee for New Nonresidential
Development in the Commercial Downtown (CD) Zoning District) (FIRST
READING: June 6, 2022: PASSED: 6-1, Tanaka No)
24. SECOND READING: Adoption of Ordinance 5553 and Ordinance 5554
Implementing the Objective Standards Project, Including: 1) New Chapter
18.24, Contextual Design Criteria and Objective Design Standards; 2)
Modifications to Affordable Housing (AH) Overlay District to Eliminate the
Legislative Process; 3) Changes to Remove Inconsistencies and Redundancies,
and Streamline Project Review Throughout Title 18 (FIRST READING: June 1,
2022: PASSED: 5-1, Cormack No, DuBois absent)
25. SECOND READING: Adoption of Ordinance 5555 Amending the City's
Surveillance and Privacy Protection Ordinance to Exempt the Foothills Fire
Early Warning System (PAMC 2.30.680). (FIRST READING: June 6, 2022:
PASSED: 7-0)
26. SECOND READING: Adoption of Ordinance 5556 Exempting Some Below-
Grade Parking Facilities from Gross Floor Area. Zone District: R-1(10,000).
Environmental Review: Final Environmental Impact Report (EIR) for the
Castilleja School Project certified on June 6, 2022. (FIRST READING: June 6,
2022 PASSED: 6-1, Kou no)
27. SECOND READING: Adoption of Ordinance 5557 Amending Title 8 of the
PAMC to Expand Tree Protection to Include Additional Protected Tree Species,
Revise Grounds for Tree Removal, and Make Clarifying Changes and Amending
Titles 2, 9, and 18 to make Clerical Updates (FIRST READING: June 6, 2022
PASSED: 5-2, Cormack, Tanaka no)
MOTION SPILT FOR PURPOSE OF VOTING
PASSED ITEMS 2-5, 8, 9, 11-23, 25: 7-0
PASSED ITEMS 6, 7, 10, 23: 6-1 Tanaka no
PASSED ITEMS 24: 5-2 Cormack, Kou no
PASSED ITEMS 26: 6-1 Kou no
PASSED ITEMS 27: 5-2 Cormack, Tanaka no
City Manager Comments
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ACTION MINUTES
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Sp. City Council Meeting
Action Minutes: 06/20/2022
Action Items
28. PUBLIC HEARING: Adoption of the Budget Ordinance for Fiscal Year 2023,
Including the Operating and Capital Budgets, Table of Organization, and Municipal
Fee Schedule; Acceptance of Updates to the Capital Improvement Plan and
Sustainability/Climate Action Plan, and the Retiree Healthcare Actuarial Report; and
Approval of Contributions for Retiree Healthcare Benefits
MOTION: Council Member DuBois moved, seconded by Council Member Cormack
to:
A. Adopt the Fiscal Year 2023 Budget Ordinance 5558 which includes the
Operating and Capital Budgets, Table of Organization, and Municipal Fee
Schedule, as amended by the actions outlined in this report, with the following
additional adjustments in the general fund:
I. Increasing contractual expenditures in the Community Services
Department by $50,000 for additional family events;
II. Increasing contractual expenditures in the Community Services
Department by $50,000 for the Human Services Resource Allocation
Process (HSRAP);
III. Increasing the Reserve: FY 2023 Service Reinvestments (Year 2) in
Non-Departmental by $100,000;
IV. Decreasing the Budget Stabilization Reserve by $200,000
V. Amend the recommended funding for the Youth Connectedness
Initiative (YCI) to fund $50,000 annually for a three-year period,
ending in FY 2025.
B. Accept final FY 2023‐2027 Capital Improvement Plan as amended by the
actions outlined in this report;
C. Accept an Update on the Sustainability Climate Action Plan (Attachment B);
and
D. Refer items on pension funding policy update and a recommended process
for funding non-profit requests to the Finance committee
E. Accept the June 30, 2021 actuarial valuation of the City's Other Post
Employment Benefit (OPEB) Plan and recommended funding levels
MOTION SPLIT FOR THE PURPOSE OF VOTING:
PASSED FOR ITEMS A, B: 6-1, Tanaka no
PASSED FOR ITEMS C, D, E: 7-0
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ACTION MINUTES
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Sp. City Council Meeting
Action Minutes: 06/20/2022
29. PUBLIC HEARING: Adoption of the Community Development Block Grant Funds
(CDBG) Fiscal Year 2022-23 Annual Action Plan and Adoption of a Resolution
Approving Use of CDBG Funds for FY 2022-23; Approval of a Substantial Amendment
to the CDBG Fiscal Year 2020-21 Annual Action Plan and Adoption of an Associated
Resolution; and Budget Amendment in the FY 2023 Operating Budget in the CDBG
Fund.
MOTION: Council Member Cormack moved, seconded by Vice Mayor Kou to:
A. The Human Relations Commission (HRC) and staff recommend City Council
take the following actions:
1. Adopt the draft Fiscal Year 2022-23 Annual Action Plan (Attachment A)
and the associated Resolution 10056 (Attachment B) allocating
Community Development Block Grant (CDBG) funding for Fiscal Year
2022-23; with the following amendment:
a. Reallocate CGDG funding shown in Attachment A from
Downtown Streets Team to Mitchell Park 525 East Charleston
Housing Project
2. Authorize the City Manager to execute the Fiscal Year 2022-23 CDBG
application to fund the Fiscal Year 2022-23 Annual Action Plan and any
other necessary documents concerning the application, and to
otherwise bind the City with respect to the applications and
commitment of funds; and
3. Authorize staff to submit the Fiscal Year 2022-23 Annual Action Plan
(Attachment A) to U.S. Department of Housing and Urban
Development (HUD) by the July 12, 2022 deadline.
4. Approve an amendment to the Fiscal Year 2023 Operating Budget
Appropriation for the General Fund (requires 2/3 approval) by:
a. Increasing the expense appropriation in the Planning and
Development Services Department by $167,477; and
b. Decreasing the Budget Stabilization Reserve by $167,477.
B. Staff recommend City Council take the following actions:
1. Approve CDBG Substantial Amendment to the Fiscal Year 2020-21
Annual Action Plan to reallocate $194,501 of CDBG-CV funding to two
new projects;
2. Adopt Resolution 10057 (Attachment C) reallocating CDBG-CV
funding as recommended in the above action and as described in this
report; and
3. Authorize staff to submit CDBG Substantial Amendment to the Fiscal
Year 2020-2021 Annual Action Plan to HUD.
4. Approve and authorize the City Manager to accept $653,168 in grant
funding from the U.S. Department of Housing and Urban Development
(HUD)
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ACTION MINUTES
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Sp. City Council Meeting
Action Minutes: 06/20/2022
5. Approve an amendment to the Fiscal Year 2023 Operating Budget
Appropriation for the Community Development Block Grant Fund
(requires 2/3 approval) by: a. Increasing the revenue estimate by
$847,669; and b. Increase expense appropriations by $761,307; and
c. Increase estimated ending fund balance by $86,362.
MOTION PASSED: 7-0
30. PUBLIC HEARING / QUASI-JUDICIAL. 2850 West Bayshore [21PLN-00177]:
Approval for a Major Architectural Review, Conditional Use Permit, and Vesting
Tentative Map to Allow for the Demolition of an Existing Office Building and
Construction of 48 Townhomes with Associated Private Streets, Utilities, Landscaping,
and Amenities. Environmental Assessment: Exempt per CEQA Guidelines Section
15332. Zoning District: ROLM (Research Office and Limited Manufacturing).
MOTION: Council Member Tanaka moved, seconded by Council Member Dubois to:
A. Approve the Conditional Use Permit to enable multiple-family residential use
of the ROLM-zoned property.
B. Approve the Major Architectural Review [21PLN-00177] application based on
findings and subject to conditions of approval.
C. Approve the Vesting Tentative Map [21PLN-00178] application with proposed
street names based on findings and subject to conditions of approval.
D. Agree not to be part of any future Residential Permit Parking program on
Colorado west of Simkin’s court
E. Incorporate the street names recommended by Palo Alto Historical Association
MOTION PASSED: 7-0
31. Adoption of Resolutions: (1) Placing a Measure Affirming the Gas Utility Transfer
on the November 2022 Ballot; (2) Placing a Business Tax on the November 2022
Ballot; and (3) Adopting a Spending Plan for Business Tax Proceeds
MOTION: Council Member DuBois moved, seconded by Mayor Burt to:
A. Defer adoption of a resolution to submit a measure to the voters at the
general municipal election on November 8, 2022 to affirm the natural
gas utility transfer until August 1, 2022;
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ACTION MINUTES
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Sp. City Council Meeting
Action Minutes: 06/20/2022
B. Return with a resolution on August 1, 2022 to submit a measure to the
voters at the general municipal election on November 8, 2022 to adopt
a business tax; and
I. Change the tax rate to exempt the first 5,000 square feet, to tax
from 5,000 – 20,000 at $.06 per square feet and 20,000 +.12 per
square feet per month. The initial rate would be effective January
1, 2023 at 50% of the above rate for the first 24 months.
II. Add in a 35-year sunset
III. Remove the CPI roll over
C. Adopt Resolution 10058 to inform the public of Council’s spending plan
for business tax proceeds.
MOTION PASSED: 5-2, Cormack, Tanaka no
Council Member Questions, Comments and Announcements
Adjournment: The meeting was adjourned at 11:16 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.
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