HomeMy WebLinkAbout2023-05-15 City Council Summary MinutesCITY COUNCIL
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Special Meeting
May 15, 2023
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual
teleconference at 5:30 P.M.
Present In Person: Burt, Kou, Lauing, Lythcott-Haims, Stone, Tanaka, Veenker
Present Remotely: None
Absent: None
CALL TO ORDER
Mayor Kou called the meeting to order. The meeting was being held in honor of Older
Americans Month.
City Clerk Lesley Milton called roll and noted that all were present.
SPECIAL ORDERS OF THE DAY
1. Proclamation Recognizing National Police Week – May 14-20, 2023, and National Peace
Officers’ Memorial Day – May 15, 2023
Council Member Burt read the proclamation recognizing National Police Week and National
Peace Officers’ Memorial Day. All citizens were asked to join in honoring past and present
police officers. On behalf of Mayor Kou and City Council, the week of May 14-20, 2023, was
proclaimed Police Week, and all citizens were urged to observe Monday, May 15, as Peace
Officers’ Memorial Day.
Police Chief Andrew Binder thanked the community, Council, and Police and City staff for
attending the annual Memorial Grove event. He hoped that another Palo Alto name would not
be added to Police Officer Memorial Wall in Washington, DC. He was grateful for the fallen
officers’ sacrifice and for the current police officers’ service.
PUBLIC COMMENT
There were no public comments.
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Mayor Kou stated the memorial was very moving, and she appreciated the fallen officers being
recognized every year. She thanked the police officers for their work. She invited Chief Binder
to take a photograph with Council.
AGENDA CHANGES, ADDITIONS AND DELETIONS
There were no changes.
PUBLIC COMMENT
1. Andres Mediavilla spoke of an alleged convicted felon who was living in the park
adjacent to their home, which was a safety concern. He had sent an email to Council
concerning the issue. He asked Council to work with PRC to find a solution.
2. Rani Fischer, a volunteer with the Santa Clara County Audubon Society, provided
slides and spoke of local birds, focusing on the Bewick’s Wren, and asked that
climate change be addressed and that there be an end to the release of feral cats.
3. Matt Schlegel discussed climate change and Palo Alto’s goal to reduce carbon
pollution and emissions. He claimed that 20 gas water heaters per week needed to
be converted to heat pump water heaters to reach the pilot program goal and 65
per week to meet the 80 x 30 goal. He wanted an understanding of the hurdles the
program was facing and what actions were being proposed to overcome the hurdles.
He asked Council to host a status report of the program that the community could
access.
4. Wathik Labidi addressed the same issue Andres Mediavilla had spoken of. Safety
around the Timothy Hopkins Park concerned him. A letter had been sent to the
Council yesterday regarding the seriousness and sadness of the situation. He asked
Council to find a solution to the problem, which had been going on for a year.
5. KC Hetterly, an intern with the Santa Clara County Audubon Society, shared slides
and spoke of local birds, focusing on Anna’s hummingbirds. She indicated that
climate change and roaming cats posed threats. She asked that climate change and
the release of feral cats be addressed.
6. Anne Meyer addressed those posing safety issues at the Timothy Hopkins Creekside
Park area, which frightened her. She asked that camping not be allowed in the area
and that a fence be put back up near the creek side.
Mayor Kou asked City Manager Ed Shikada to investigate the Timothy Hopkins Creekside Park
issue and give Council a full report.
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City Manager Ed Shikada acknowledged that Staff had received the email and they were looking
into what could be done about the situation.
COUNCIL MEMBER QUESTIONS, COMMENTS AND ANNOUNCEMENTS
Vice Mayor Stone commented that he had attended the recent Turkish Heirloom Textile Arts &
Craft exhibit and encouraged all to attend next year. He had attended the Palestinian Culture
Day and delivered the proclamation on behalf of the City of Palo Alto.
Council Member Lauing had attended the Affordable Housing workshop and was encouraged
by the attendance.
Council Member Veenker associated herself with Council Member Lauing’s comments and
thanked Staff for the fair.
Mayor Kou had attended an emergency exercise involving Palo Alto Airport and was thankful to
have been invited. She encouraged Council members to familiarize themselves with CalDART
and perhaps contact them and join their exercise next year.
STUDY SESSION
2. Study Session to Discuss Next Steps Following Letter Received on March 13, 2023, from
Palo Alto Unified School District titled “Invitation for Cubberley Development Proposals”
City Manager Ed Shikada announced that it was the first opportunity for public discussion of the
invitation from PAUSD to receive a proposal regarding the Cubberley property. He provided
groundwork for the discussion. Any preliminary feedback Council could provide Staff on the
core interest of the City would be valuable.
Community Development Director Kristen O’Kane shared slides and gave a brief history and
overview of Cubberley, which details were included in the Staff Report. She highlighted the
current physical conditions of Cubberley, which needed daily maintenance to keep it functional.
She clarified that Cubberley served a significant amount of organizations and individuals. A slide
was supplied related to Cubberley finances. The purpose of this meeting was to discuss next
steps following the letter that had been received from PAUSD. Key components of the letter
included the school district retaining 20 acres for future use, which was negotiable. PAUSD was
open to transferring at least seven acres to the City. Staff suggested that Council discussion
focus on the process for communications with PAUSD. Staff recommended communications
begin on a staff-to-staff level using the City-School Liaison Committee to report back to
governing bodies and the public. She asked Council to discuss what should be included in the
proposal related to primary interests and financial considerations and who should be
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designated to work with Staff, if it should be the Cubberley Ad Hoc Committee or others. The
next steps Staff suggested were a closed session to discuss financial matters, finalize a proposal
to present to PAUSD, and then for the City and PAUSD to engage in negotiations and that public
reporting be done at the appropriate times.
Council Member Lauing asked if there was a specific proposal of who would be the
representatives.
City Manager Shikada did not have anyone specifically assigned as representatives. He would be
the primary negotiator likely with Director O’Kane and with real estate staff providing support.
He presumed the representative for PAUSD would be the superintendent but did not know that
for certain.
Council Member Lythcott-Haims spoke of operating expenses and current revenue and
operating at a loss, and she questioned where the monies would come from.
Director O’Kane answered that the expenses were related to managing the facility, which
included utilities, landscaping, etc. Revenues included the long-term leases and the rental
rooms.
City Manager Shikada believed the monies would come from the General Fund. He noted that
Cubberley had never been considered an enterprise and, like most programs, operated at a
loss, and the City provided ongoing operational support.
Vice Mayor Stone asked the minimum acreage needed for a community center. He inquired if
there was anything preventing a community center being on the eight acres the City currently
owned. He thought it would be helpful to have information related to why previous master
plans did not come to fruition. He believed there would be several check-ins with PAUSD to
ensure that the City would be on the proper path. He wanted to better understand what could
be done in various scenarios. He agreed with the next steps Staff recommended. He thought it
was critical that something be done at Cubberley, and he was looking forward to conversations
with PAUSD.
Director O’Kane expressed that the minimum acreage needed for a community center would
depend on the facilities and amenities. She understood that some minor things in the 1991
Master Plan were completed and that some things were not done due to budget constraints.
She recalled that the report completed by the Cubberley Community Advisory Committee did
not provide a plan but provided recommendations for next steps. She thought the 2019
Cubberley Concept Plan was too big a vision, and there was not understanding of PAUSD’s
limitations on financing related to shared community spaces, and she noted that the pandemic
and funding were factors. She thought the 2019 version provided great baseline information
with a lot of community feedback and data to inform the next process.
City Manager Shikada explained that building a community center on the City’s parcel would
have some effect on PAUSD’s parcel as far as utilities, etc.
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Council Member Veenker asked if the cost to the City to run Cubberley in its current state was
$5M a year. She thought it was important to streamline the process so a decision could be
made and to determine how much land there would be and the degree of shared
infrastructure.
Director O’Kane acknowledged that $5M was a good starting point and a good estimate.
Council Member Burt discussed the 2019 Master Plan being dependent on a shared use of
facilities and PAUSD’s future needs, which could not be determined at that time, and it was
dependent on PAUSD sharing in funds for the Capital Project, and it had been determined that
their bond funds could not be used for purposes other than school purposes. He inquired if the
difference between the operating expenses and the revenue would be made up through the
Cubberley Capital Infrastructure Fund. He described what had been described by the Finance
Committee. He remarked that the City needing to control and own more than eight acres had
been a linchpin in moving forward. He was excited that the letter addressed their openness to a
land swap and thought it was an opportunity to go forward with the balance of the Fletcher
Middle School athletic fields swap acre for acre.
Director O’Kane voiced that she would have to get back to Council regarding the difference
between the operating expenses and the revenue being made up through the Cubberley Capital
Infrastructure Fund.
Council Member Tanaka suggested there be a joint meeting with the PAUSD, rather than
sending letters back and forth, to expedite the process.
Mayor Kou inquired how the covenant not to develop came to be; how much was in the
Cubberley Infrastructure Fund; and if the City continued maintenance on the City’s parcel.
Director O’Kane believed there were several schools closed, financial constraints due to
Proposition 13, and low enrollment. She did not know what prompted the agreement, but
there was agreement between the City and PAUSD to not sell those school sites. The
information she had was from past documents. She would return to Council with information as
to the balance of the Cubberley Infrastructure Fund. She explained why the City continued
maintenance on both parcels and discussed a cost share, which was identified in the lease.
Council Member Lythcott-Haims queried as to the estimated acreage being contemplated for a
community center in previous years and if PAUSD’s offer met that vision. She asked if
transferring seven acres would be enough and if there needed to be conversation of more
acreage.
Director O’Kane thought the Cubberley Concept Plan included almost the entire site for
community use, which included fields. She thought the full site was contemplated in all
previous plans. A community center could be built on eight acres, but there would not be a
pool, etc. She outlined that acreage needed would depend on what would be included in the
community center and whether space would continue to be leased from PAUSD.
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City Manager Shikada mentioned that PAUSD’s letter indicated they wanted to retain roughly
20 acres for a potential future school. Planning would need to take land area and sequence of
involving different parts of the parcel into account.
PUBLIC COMMENT
1. Ken Horowitz was disappointed in the Staff Report for the Study Session, and he
claimed there was no gameplan. He noted that there were plan recommendations
on Page 20 of the 2013 report. He opined that the facility had safety issues. He
quoted Yogi Berra: When you come to a fork in the road, take it.
2. Penny Ellson had previously served on both Cubberley Committees that had been
discussed. She expressed her frustration related to both processes, and indicated
there had not been good guidance from Staff, housing being added made people
angry, and that sharing space was a barrier. She agreed with Ken Horowitz’s
comments. She did not see a plan or a strong recommendation related to use. She
hoped there be space for those who would reside in the new housing, which needed
to be walkable and bikeable.
Mayor Kou asked what the size of the parcel was for the Jewish Community Center. She
questioned if the playing fields accommodated afterschool sports. She asked if the athletic
groups could lease directly from the school district.
Director O’Kane did not know the size of the parcel for the Jewish Community Center. She
would provide that information for the closed session. She explained that the City rented
out the athletic fields for mostly youth athletic groups. They did not accommodate
afterschool sports. Potentially the athletic groups could lease directly from the school
district.
Council Member Lauing voiced that this needed to be thought about in sections. PAUSD
being open to Palo Alto acquiring land was a new opportunity, and a process for doing that
was needed. Regarding the community center, he stated that existing benefits needed to be
emphasized. He thought negotiations should focus on how much land to acquire, and then a
plan could begin. He suggested two or three staff members and a council member
participate in negotiations.
Council Member Veenker associated herself with Council Member Lauing’s comments. She
stated that ideally there would be a large enough parcel to plan all at once, but it may have
to be staged.
Council Member Tanaka suggested meeting with PAUSD. He did not think there should be a
purchase until there was a use plan.
Council Member Lythcott-Haims asked about how many housing units were proposed in the
2019 report and if they were reflected in the Housing Element.
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Director O’Kane specified that the 2019 Plan had several housing scenarios, and she would
have to research the number of housing units in that plan. She assumed those units were
not included in the Housing Element.
Council Member Burt agreed that land was needed for a community center to serve the
community and thought housing should be on private land. He thought more than seven
acres should be considered if PAUSD was open to that, but he did not believe they were
offering more than seven acres. He thought 15 acres would be enough to move forward
with a plan. He noted that the City-School Liaison Committee did not lend itself to
negotiations. He thought having a council policy presence, a PAUSD presence, and a staff
presence in negotiation with school administration and board members would be valuable,
and he thought it should be the Cubberley Ad Hoc. He would be interested in being added
to the Cubberley Ad Hoc from the City-School Committee standpoint.
Mayor Kou suggested there be a discussion in closed session related to long-term lease. She
thought infrastructure and cost should be addressed when next meeting with PAUSD. She
wanted the public to be included in discussion regarding Terman Park and thought a
covenant not to develop should be explored. With regard to participation in negotiations,
she suggested the Cubberley Ad Hoc and adding Council Member Burt to it.
Council Member Lythcott-Haims specified that Council was trying to figure out the process.
She was a member of the Ad Hoc and the City-School Liaison Committee. She thought the
Ad Hoc should be a part of negotiations and agreed with Council Member Burt being a part
of that.
Mayor Kou wanted the process to be transparent and the public to be included in
development of the plan and moving forward.
Director O’Kane, after investigating, remarked that the Cubberley site included 3 options
with 64, 112, and 164 housing units.
City Manager Shikada followed up with information related to the balance of the Cubberley
property infrastructure fund, which was about $4M.
CONSENT CALENDAR
3. Approval of Minutes from May 1, 2023, Meeting
4. Approval of a 3-year General Services contract with Johnson Controls Fire Protection,
totaling $423,830, for Automatic Fire Extinguishing Systems Inspection, Testing, and
Repair Services; and Approval of a Budget Amendment in the General Fund.
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5. QUASI-JUDICIAL. 151 S California Avenue {22PLN-00363}: Ratification of Director's
Approval of Waiver from the Retail Preservation Ordinance for an Alternative Viable Use
to Allow for a Medical Office Use to Occupy a 3,500 Square Foot Tenant Space. Zone
District: CC(2). Environmental Assessment: Exempt from CEQA in Accordance with
Guidelines Section 15061(b)(3) and 15301.
6. Approval of a Design-Build Contract with Parking Guidance Systems, LLC in the Amount
of $4,180,217 with Authorization for the City Manager to Negotiate and Execute Change
Orders up to a Not-to-Exceed Amount of $418,022 for the Downtown Automated
Parking Guidance System, Access Controls & Revenue Collection Equipment Project,
Capital Improvement Program Project PL-15002; and Approval of a Budget Amendment
in the Capital Improvement Fund; CEQA status – exempt under CEQA Guidelines Section
15301(c)
7. Adoption of Resolution 10108 Authorizing the City Manager or their Designee to sign
Grant-Related Documents with Caltrans for the Newell Road/San Francisquito Creek
Bridge Replacement Capital Improvement Program Project PE-12011; CEQA:
Environmental Impact Report for the Newell Road Bridge (Resolution No. 9889)
8. Approval of Amendment No. 3 with RossDrulisCusenbery Architecture, Inc. (Contract
No. C17165953) to add $687,500, increasing the not to exceed amount to $9,725,108,
for additional Professional Services for the Public Safety Building Capital Improvement
Program Project (PE-15001); CEQA: Environmental Impact Report for the PSB and New
California Avenue Area Parking Garage (Resolution No. 9772)
9. Amendment No. 5 to the Agreement between the City of Palo Alto and the Friends of
the Junior Museum and Zoo for Mutual Cooperation and Support to Extend the
Agreement through June 2024 and Accept a $75,000 Grant for a Community
Engagement Specialist; CEQA status – not a project
10. Approval of Professional Services Agreement Contract Number S23184570 with Foster &
Foster Consulting Actuaries, Inc. in an Amount Not to Exceed $147,180 to Provide
Actuary Services for a Period of Five Years: CEQA Status – Not a Project
11. Authorization for approval of a Blanket Purchase Order with Granite Rock Company in
the Amount of $500,000 Annually for a Three-Year Term, beginning July 1, 2023 through
June 30, 2026, for a Total Not-to-Exceed Amount of $1,500,000 for Hot Mix Asphalt
Materials for Public Works and Utilities Departments; CEQA Status – Not a Project
PUBLIC COMMENT
There were no requests to speak.
Council Member Tanaka registered a no vote on Agenda Item Numbers 6, 8, 10, and 11.
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Council Members Tanaka and Lythcott-Haims requested to pull Item 8.
MOTION: Council Member Burt moved, seconded by Council Member Kou, to approve Agenda
Item Numbers 3-11.
MOTION PASSED Items 3, 5, 7, 9: 7-0
MOTION PASSED Items 6, 10, 11: 6-1, Tanaka no
MOTION PASSED Items 8: 5-2, Tanaka, Lythcott-Haims no
Council Member Tanaka noted three items, perhaps more, had only a single bid and voiced that
there was a systemic problem with the procurement process. He noted that Item 6 was 27%
more than the prior year. He noted that the contractor, not the City, should have covered
expenses for mistakes they had made related to Item 8. He remarked there were typos related
to Item 10 and that there was an increase in cost that was not explained. He thought the
requirements of the radius from job site for Item 11 should have been 20 miles, not 10 miles,
which would have allowed more bids. He also noted there had been a 35% increase in price.
Council Member Lythcott-Haims was concerned with the extent of the deficits related to Item
8, and she had hoped the item would have been pulled so there could have been a
conversation.
The Council took a 12-minute break.
CITY MANAGER COMMENTS
City Manager Ed Shikada acknowledged and appreciated the comments related to the events
over the weekend, particularly the Affordable Housing Resource Fair and the disaster exercise.
He thanked Council members for their participation in the activities. He noted that the 2022
RIPA data was available, and he looked forward to further discussions. The information was
available at cityofpaloalto.org/PAPDripa. He provided information regarding forthcoming
nighttime road closures. Upcoming community meetings included a remote Budget
Informational Session on May 16 and an in-person open-house-style event on May 17 related
to the Palo Alto Airport Long-Range Facilities and Sustainability Plan. There would be a Third
Thursday on California Avenue event on May 18 and an event each third Thursday in June and
July, and there were discussions to extend it beyond. The next Breaking with the Law event
would be on May 22. The California Avenue Murals Festival would be June 1 through 9, and the
public was invited to watch and invited to participate June 5 through 9. Information could be
found at cityofpaloalto.org/MuralsFestival. He noted that the Council would recess in July.
Tentative upcoming Council items included the Finance Committee Budget Report Out, which
would be a study session, and action related a Firearms Sales Limitation Ordinance on May 22.
There would be no Council meeting on May 29 in observance of Memorial Day. On June 5,
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there would be a study session with Valley Water regarding the Water Purification Project and
action items related to Project Homekey and the S/CAP plan. On June 12 would be the Term
Sheet with Pets In Need for the operation of the Palo Alto Animal Shelter and Council discussion
with the Independent Police Auditor. In advance of that session, Council would receive the next
report from the IPA. On June 19 would be the adoption of the budget, and hopefully there
would be time for a study session related to the Tree Ordinance implementation.
ACTION ITEMS
12. PUBLIC HEARING: Adoption of a Resolution Providing that the City will Not Levy
Assessments for the Downtown Business Improvement District for FY 2024.
Assistant Director Administrative Services David Ramberg outlined that Council had been asked
to hold a formal public hearing and adopt a resolution for the suspension for the Downtown
Business Improvement District assessment for FY 2024. Council approved the resolution of
intent to not levy an assessment on April 24, and this meeting was the second step in the
process.
PUBLIC COMMENT
1. Charlie Weidanz, on behalf of the Palo Alto Chamber of Commerce, spoke in support of
the staff recommendation to adopt the resolution. He discussed the establishment of
the Downtown Business Improvement District and the current economic landscape
being different and the model not being sustainable. He hoped Council would support
their efforts to develop alternative funding sources and continue to prioritize
revitalization of downtown.
MOTION: Vice Mayor Stone moved, seconded by Council Member Veenker, to adopt a
Resolution 10109 declining to levy assessments for Fiscal Year 2024 for the Downtown Business
Improvement District (BID).
Vice Mayor Stone commented that he agreed with Charlie Weidanz’s comments related to not
levying assessments for FY 2024.
Council Member Burt supported the motion. He spoke of the past functions of the bid, which
included promotion of downtown, etc., and thought such functions remained important.
Council would receive a budget update from the Finance Committee, and he recalled that the
Finance Committee unanimously supported a special events manager/coordinator position. He
thought Council’s review of the budget should consider [inaudible] the staff position but also
possible needed out-of-pocket expense. He discussed the upcoming Third Thursday event and
indicated that downtown needed something comparable. He discussed the HBID and thought
abandoning that investment was a mistake and thought the City needed return of the program.
He suggested considering rejuvenating that approach as part of a down plan and capital
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investments in the downtown physical infrastructure. He was more supportive of the City
financially supporting events.
Mayor Kou appreciated Council Member Burt’s comments regarding the Finance Committee.
She was concerned that not having an assessment could impact events, and she supported an
events coordinator. She was concerned about the City possibly funding all the events and
thought it should be a shared cost. She supported the motion.
MOTION PASSED: 7-0
13. Update, Discussion, and Potential Direction regarding State and Federal Legislation
Deputy City Manager Chantal Cotton Gaines introduced consultants from the advocacy firms.
Staff had intended for the meeting to focus on the state a lot. Staff was looking for Council
actions on about six bills with recommended actions. They would also provide information on
the monitoring list. Since the last presentation, they had submitted a few letters related to bills,
which fell within legislative guidelines, that Council had given Staff clear direction through the
legislative guidelines that would support taking positions on those bills.
Townsend Consultant Niccolò De Lucca supplied slides and gave a State legislative overview. He
explained that the Senate and the Assembly Appropriations Committees would meet on May
18, which would block much legislation. He outlined Townsend’s advocacy strategy. He
explained the difference in priority legislation and legislation monitoring. He provided a
summary of legislation that was being monitored. He addressed the state budget reflecting a
deficit and two bonds the governor called out but noted there was no current legislation. He
discussed why the budget would be in framework until November due to personal income tax
and expected there would be formal reconciling of the 2023/2024 budget.
Townsend Public Affairs Consultant Carly Shelby furnished slides and discussed bills the City had
taken the formal positions on, which included AB 1505 and SB 43. They recommended the City
take positions on SB 423, AB 12, AB 1637, AB 1598, SB 2, and ACA 1, and she provided
Townsend’s recommended positions. Related to the Federal Appropriations Fund, she
commented that the Buena Vista Mobile Home Park rehabilitation funds were likely to be
incorporated into the final appropriations bill.
League of California Cities Deputy Executive Director of Advocacy Melanie Perron furnished an
overview of the League overall and announced how Cal Cities set policy. She encouraged
Council’s participation in their board or policy committees. She outlined Cal Cities budget
requests. She highlighted that the Governor’s May Revision Budget largely did not redirect city
funds to address the state budget shortfalls for homelessness, housing, public safety,
infrastructure, or climate change, which they were focused on. She addressed the advocacy
priorities for Cal Cities in 2023. She spoke of homelessness, housing, mental health, and public
safety and bills they supported and opposed. They were releasing a letter to the Assembly
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legislative leadership regarding fentanyl response and asked Council to contact her if they were
interested in joining the letter. She presented the nine bills Cal City was sponsoring, although
positions had been taken on dozens of bills regarding impacts to cities ranging from
environmental quality, housing, etc. She highlighted that they were sponsoring two Brown Act
bills, one of which an extension of AB 361 requirements. They were doing a lot in the public
contracting space, and they would be happy to have a conversation with Council offline. She
provided a list of bills Cal Cities had been directly involved with, which were victories. On the
Federal side, they were very focused on ARPA Fund acts, and she expressed that they may
reach out to Council for assistance. She remarked that Cal Cities had updated the handling of
the annual conference, and she could provide Council with information related to that. She
specified that they were involved in the SB 9 litigation, and there would be material regarding
that in Cal Cities newsletter later in the week. She requested Council let her know if they
needed her to provide the information. She provided an update on the California Business
Roundtable ballot measure, which Cal Cities opposed.
Deputy City Manager Cotton Gaines requested Council confirm their opposition of SB 423 and
AB 1637 and their support of AB 12, AB 1598, SB 2, and ACA 1.
Council Member Veenker wondered if this should go to P&S for feedback to Council. She
supported SB 2 and asked how to call on state officials regarding that resolution.
Consultant De Lucca suggested there be a letter to Senator Portantino and that the letter be
shared with all Assembly members. He suggested making personal phone calls, attending
Sacramento Advocacy Days, and working with other regional leaders to let it be known other
cities were working on this. He had other ideas that he would be happy to speak about offline.
Council Member Veenker encouraged Council to take those suggestions.
Council Member Lythcott-Haims wanted to understand the concern regarding Cal Cities General
Assembly and how it was being addressed. She questioned why Council should oppose SB 9 and
SB 423.
Director Perron explained why there had been concern related to Cal Cities General Assembly
and how changes and enhancements were being made to address that.
Consultant Shelby provided details related to SB 423 revising some approval processes, and
Townsend’s recommendation to oppose SB 423 related to the sunset removal date, and they
thought the bills should be revisited every few years.
Deputy City Manager Cotton Gaines remarked that staff used the legislative guidelines as a
guide for supporting or opposing pieces of legislation, which allowed drafting of a letter if the
guidelines were clear. As there had been contention around SB 423, Staff wanted Council to
have an opportunity to discuss it. She asked Council to share any nuances that should be
included in the position letter.
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Vice Mayor Stone asked for information regarding financial aspects for the City and cyber
security related to AB 1637. He queried if unbundling parking in AB 1317 would extend to BMR
units and if it would require tenants to pay extra for parking. He questioned when Council
would receive a bill monitoring update.
Consultant Shelby answered that the bill was proposed in response to cyber security attacks on
cities, and the bill would require IT departments to recode, reprint material, etc., but there was
no funding mechanism. She explained that there was concern that this may not be fully
implemented by 2026 and there was concern that a domain shift may not equate to additional
security benefits. They recommended opposing the bill as it would be burdensome for cities to
implement by 2026.
Consultant De Lucca indicated that this legislation could possibly slow security breaches but
would not stop them entirely. He would follow up with Council concerning AB 1317 and parking
for BMR units, but he noted that they would not know if it would move forward until May 18.
They were working closely with the administration on the bills being monitored, and they
would know on May 18 which bills the Appropriations Committee would move forward and
which bills would be held. He did not expect to see the amendments until next week. From
there, they could move some bills from monitor to suggest support or recommend opposition.
Deputy City Manager Cotton Gaines noted that direction could be given to Staff today related
to bills Council may want to reflect on, and then Staff could make a discernment in
collaboration with the Mayor and Vice Mayor.
Council Member Burt asked if there had been polling related to the Business Roundtable
measure or if polling was planned. He questioned the role of the Chambers of Commerce,
including the local Chamber of Commerce, in supporting or opposing the bill. He suggested the
participants in the Business Roundtable be considered and their political accountability. He
inquired why RHNA mandates were not characterized as unfunded mandates. He asked if the
League would bring forward an argument regarding RHNA allocations being unfunded
mandates. He noted that the League sponsored legislation and the priority monitored
legislation did not seem to align, and he wanted to know how the lists would be reconciled
going forward.
Director Perron stated polling would be done if it had not already been and it would be done
over the course of the ballot measure. She recalled that the State Chamber of Commerce had
contributed about $100K, which was a small interest, and they were not taking a true proactive
roll. She explained what they considered to be an unfunded mandate. SB 9 was considered a
matter of statewide concern, which could sometimes eliminate the need for it being an
unfunded mandate. They would not bring forward an argument regarding RHNA allocations
being unfunded mandates. She understood the need for additional resources, and she would
take the issue back to her team and follow up with Council. She added that Cal Cities had also
taken an opposed position on AB 1637 and SB 423, so there was overlap. She would be happy
to coordinate with Townsend related to that.
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Consultant De Lucca commented that they had flagged commonalities in League sponsored
legislation and priority monitored legislation. He explained that the League worked on some
larger efforts and Townsend worked on more direct, specific efforts. He would be happy to
work with the League, CSAC, and other associations to reconcile the lists.
Mayor Kou clarified that Townsend was also working based on Palo Alto’s foundational
principals, which was somewhat different than Cal Cities’.
Council Member Tanaka voiced why he supported the Taxpayer Protection and Government
Accountability Act. He also supported SB 423. He opposed AB 12. He detailed why he did not
agree with the recommendations for SB 423 and AB 12. He did not support ACA 1, as he did not
believe the voter threshold should be lowered. Regarding the Brown Act and open meetings, he
wanted to continue open meetings.
Mayor Kou was encouraged by Cal Cities’ direction and the change in terms of taking measures
to promote local decision-making and lobbying against policies that would erode local control.
She appreciated President Ali Sajjad Taj’s leadership and Executive Director Carolyn Coleman’s
letter addressing the budget shortfall and homelessness. She queried if ACA 1 included a
possible parcel tax to fund affordable housing and infrastructure and if AB 309 passed. She had
funding concerns related to staffing regarding AB 1633. She thanked Townsend for monitoring
and providing updates for SB 423. She addressed why she considered Broadband Permit
Applications unreasonable and hoped it would continue to be monitored but that there be a
very clear opposition. Concerning SB 252, she questioned how investments would be affected if
there were divestments in fossil fuel companies. She outlined that SB 405 would pose more
work for City staff and requested it be monitored. She asked why AB 12 referenced furnished
and unfurnished rentals, and felt furnished rentals may need to involve a higher deposit.
Consultant Shelby answered that AB 309 was on the Appropriations Suspense File. It would be
determined what would happen with that on May 18. She understood that AB 1633 would be
acted upon on May 18. They would send updates as they knew more. She did not have
quantifiable metrics related to divestments in fossil fuel companies and the effect on
investments. She noted that a large portion of the portfolio was invested in fossil fuel and
divesting would contribute to the destabilization of the fund. That would be monitored.
Consultant De Lucca understood ACA 1 to include bonds, a local sales tax measure, and parcel
tax, but he would confirm that. As for AB 12, the author’s office indicated they wanted the
deposit to be the same whether furnished or unfurnished.
Council Member Lythcott-Haims stated that there were different perspectives on the term local
control and thought it was dangerous to be in favor of or against it. She wanted Cal Cities to
comment on their opposition to SB 9. She wanted to know specifically what the $2M was to be
allocated for related to Buena Vista.
Director Perron specified that SB 9 interfered with the home rule and clarified that SB 9 was not
an affordable housing bill. She would be happy to provide Council with the Amicus Brief.
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Deputy City Manager Cotton Gaines remarked that a Federal earmark request had been
submitted for the electrification of the Buena Vista site, which aligned with the City’s goals.
There had been mixed reactions from the public in terms of the future site being all electric.
City Manager Shikada replied that the electrification for Buena Vista would be significantly
more than $2M.
Council Member Lauing was willing to accept all the oppose and support recommendations,
and he would include supporting SB 2. He noted that the discussion of SB 35 had referred to
vague sunset dates, etc. He supported ACA 1. He agreed with Mayor Kou concerning the
security deposit for rental units.
Council Member Veenker thought current views may be different from the previous City
Council, and she wondered if positions should be taken on the bills that did not have current
consensus and if there should instead be further discussion by Council. She requested more
detail regarding the Governor’s May Revision Budget and shifting to a 2024 bond measure
related to climate change and for a description of AB 698.
Director Perron responded that AB 698 would not move forward. She described what the bill
would have done. The Governor’s May Revision Budget indicated that climate change funding
should go to a bond measure in November 2024, and there were three bond measures pending
in the legislature, which totaled over $20B, and one of the measures would be in play next year.
Vice Mayor Stone asked if the California Housing Authority would also be able to provide state
funding for affordable housing production. He asked how much funding the State was
proposing in the revised May budget for actual affordable housing construction.
Consultant De Lucca stated that was part of the goal. BCSH is the state agency working on
funding, so if this were to move forward with a funding component, it would need to be
addressed. He did not have the state budget information available but was willing to get that
and clarified that the May revise was the governor's proposal back to the legislature. There has
been some support from the Senate and Assembly to maintain $1B for homeless services. The
issue was what the deficit looked like and where there was room for flexibility. The legislature
has said it was a priority depending on how much was still available.
Vice Mayor Stone supported the list as noted and agreed on adding SB 2. He spoke about the
issue of local versus state control and hoped to find a better partnership with the State
regarding housing.
Council Member Lythcott-Haims proposed that it be recorded in the letter when the vote on an
item was not unanimous.
Council Member Veenker felt it was not necessary to choose support or oppose on issues that
were split to a significant degree. She believed there was near consensus on all but SB 423 and
that it should be recorded that the City does not take a formal decision on that item.
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Council Member Burt felt SB 423 was very problematic and endorsed opposing it.
Council Member Tanaka supported the suggestion of having the vote recorded or alternatively
not including the ones there was opposition on.
Council Member Lauing asked what the usual approach is.
Consultant De Lucca stated it was up to the will of the Council.
Mayor Kou stated SB 450 appeared to take away local control even more and asked to keep an
eye on that. She wanted to add SB 634 to the recommended action list as a support. The bill
creates a new type of low-barrier navigation center called opportunity housing. She also
wanted to add to the monitor list SB 4, SB 341, SB 393, SB 440, and SB 532. She wanted to add
AB 965 to the list of recommended action, to oppose. She wanted to vote on the issues that
were believed to have consensus (AB 1637, AB 1598, and SB 2).
MOTION: Council Member Veenker moved, seconded by Council Member Lythcott-Haims, to
direct Staff to take direction on the following bills:
Support
• AB 1598 (Berman)
• SB 2 (Portantino)
Oppose
• AB 1637 (Irwin)
MOTION PASSED: 7-0
ORIGINAL MOTION: Council Member Kou moved, seconded by Council Member Burt, to direct
Staff to take direction on the following bills:
Oppose
• SB 423
SUBSTITUTE MOTION: Council Member Tanaka moved, seconded by Council Member Veenker,
to vote “no position” on SB 423.
MOTION FAILED: 3-4, Burt, Kou, Lauing, Stone no
ORIGINAL MOTION PASSED: 4-3, Lythcott-Haims, Tanaka, Veenker no
MOTION: Council Member Lythcott-Haims moved, seconded by Council Member Tanaka, that if
there is not a unanimous position on a legislative item, then the vote be recorded on any
resulting letter to contain the vote count.
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Council Member Burt stated he would not support listing individual council members' votes.
Council Member Lythcott-Haims was more interested in the concept than the names being
recorded and was happy to have the vote be reflected by number only.
The wording of the motion was revised.
MOTION PASSED: 7-0
ORIGINAL MOTION: Vice Mayor Stone moved, seconded by Council Member Burt, to support
AB 12.
Vice Mayor Stone felt it was critical to protect renters across the state. This would not place an
undue burden on landlords and could provide a safety net for renters trying to enter the rental
market.
Council Member Tanaka opposed this and felt it made no sense for furnished apartments.
SUBSTITUTE MOTION: Mayor Kou moved, seconded by Council Member Tanaka, to add AB 12
to the monitor position.
Mayor Kou stated there was still a concern about the furnished part of it and it should be
brought back after speaking to the author for consideration.
MOTION FAILED: 2-5, Burt, Lauing, Lythcott-Haims, Stone, Veenker no
ORIGINAL MOTION PASSED: 6-1, Tanaka no
MOTION: Council Member Lauing moved, seconded by Council Member Veenker, support ACA
1.
MOTION PASSED: 5-2, Tanaka, Kou no
MOTION: Mayor Kou moved, seconded by Council Member Lythcott-Haims, to support SB 634.
MOTION PASSED: 7-0
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Mayor Kou requested to add SB 450, SB 4, and AB 965 to the monitor list. She asked if there
was anything to be concerned about on the ARPA Funds. She requested to find out earlier
about the next lobbying day.
Consultant De Lucca explained it was a proposal from the House Republicans as part of the debt
ceiling discussions, nothing in a formal bill. They could share with the Congresswoman and
both Senators any recent reports as to drawing down those funds so they know Palo Alto has
been a good actor with the funds.
14. PUBLIC HEARING/LEGISLATIVE: Adopt an Ordinance That Changes Palo Alto Municipal
Code Chapters 18.04, 18.09, 18.10, 18.12, and 18.40 related to Accessory Dwelling Units
and Accessory Structures. Environmental Assessment: Exempt from the provisions of
the California Environmental Quality Act (CEQA) pursuant to Public Resources Code
Section 21080.17 and CEQA Guidelines sections 15061(b)(3), 15301, 15302 and 15305.
Planner Garrett Sauls described the current ADU ordinance adopted in 2020, two additional
motions to continue working with the community and design professionals to consider
additional regulations to incentivize ADU development and to direct the PTC to look at a deed
restricted affordable ADU program. He reviewed the timelines of these policies, including HCD
letters and responses. The purpose of this discussion was to respond to HCD's feedback and
further establish policies that would help encourage, clarify, or resolve any potential conflicts.
The HCD comments were described. The proposed areas for regulatory changes were
basements, noise-producing equipment, parking attached to an ADU, privacy, retracting prior
deed restrictions, reconstruction/expansion of nonconforming structures, removing existing
garage requirement, conversion/relocation of uncovered parking stalls, and alignment of ADU
and tree ordinance. The corner lot incentives focus primarily on what benefits the City could
potentially provide to the primary home in order to encourage an individual to develop an ADU
at a greater setback than what would typically be allowed. He explained the policies
considered for inclusion in the draft ordinance and the code modifications to definitions,
sanitation facilities, and accessory structures. He explained the recommended motion and next
steps.
PTC Vice Chair Bryna Chang stated it was a disappointment that the PTC decided not to
continue to pursue the affordable ADU item all, but almost every commissioner had doubts
about whether the program would be effective for various reasons, which bore out when Staff
spoke to the experts. She concurred with everything Planner Sauls said.
PUBLIC COMMENT
1. John Kelley stated he had spoken to Director of Planning and Development Services
Jonathan Lait and felt Staff was in better understanding of concerns regarding the way
ADUs are sometimes asked to pay marginal electrical distribution upgrade costs and also
the advisability of allowing J/ADUs to have, at the homeowner's option, separate sewer
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and utility services. He felt there was a misconception when talking about the
alignment of ADUs and the tree ordinance as the tree ordinance is not a form of
ministerial review and trying to apply that ordinance to state exemption ADUs is
mistaken. He asked Council to direct discussion on what is really necessary to provide
financial incentives to stimulate ADU production back to the PTC. He urged the Council
to have a single standard for detached two-story ADUs throughout the City.
Council Member Lythcott-Haims asked when an analysis of the tree ordinance could be
expected.
City Manager Ed Shikada stated a study session was expected on June 19.
Council Member Burt asked if the noise-producing equipment locations was only for more
significant noise.
Planner Sauls stated the policy considered tonight was relative to the City's existing noise
ordinance, which has limit of 66 dB for most properties. Often, the type of mini split systems
used to facilitate hot and cold air within the J/ADUs have a noise level between 50 and 60,
already complying with that ordinance.
Director of Planning and Development Services Jonathan Lait stated they will be coming to the
Council in August with an ordinance that would address the broader site location of heat pumps
on a property for a principal building.
Council Member Burt also wanted to ensure that the language clearly referred applicants to the
right place with simplicity and clarity.
Director Lait stated there was a reference back to the noise ordinance.
Vice Mayor Stone referenced that the HCD recommended adding "when feasible" to the
language regarding the entryway for J/ADUs and Staff recommended removing the language
altogether. He questioned whether it created a subjective standard for Staff to review on a
case-by-case basis and whether that was allowed under state law. He stated there was
language in other items, egress windows and skylights, regarding feasibility.
Planner Sauls stated feasibility was not defined and can be more subjective. Though there have
not been a lot of issues with this policy, HCD noted it as one of concern related to compliance
with the state law. Egress was better understood from a building code context.
There was further discussion about this.
PTC Vice Chair Chang stated the PTC was sympathetic to the Staff concern about the feasibility
language but wanted to honor the intent of the ordinance. The result was to suggest that it
was encouraged but not required that the unit not have an entranceway, which was the same
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thing as saying "when feasible." The PTC also felt that homeowners would want to do what is
more aesthetically pleasing anyway.
Council Member Lauing questioned the reasoning behind giving in on this particular item and
not items ii and iii. He stated the daylight planes item seemed like the most murky as the
perspectives did not square.
Director Lait explained that HCD stated in their letter that the entry requirement may be unduly
restrictive. It was possible to push back on that if the Council wished. Regarding the daylight
plane, he stated HDC was unambiguous that the standard did not comply with state law. He
stated if Staff made an argument against a change, it was because there was a lot of
information to substantiate the position.
Council Member Veenker suggested putting "when feasible" since that was what HCD asked
for. It would encourage people to try to comply, and if they do not want to, there did not need
to be a very rigorous review.
Director Lait had no concerns with that approach.
Mayor Kou asked if the bonus floor area and lot coverage exemption gave more floor area than
allowed in the code. Regarding the setback, she asked if there was a limit on equipment on the
side of the house, in order not to impede emergency response.
Planner Sauls stated the bonus would have the normal calculation for the site based on size and
the homeowner would have the option to build an 800-sq ft ADU or 500-sq ft JADU on top of
that number. The Fire Department had noted that HVAC systems could be placed in different
locations to allow for ingress and egress.
Council Member Lauing asked if there would be some sort of audit function in place regarding
the tree ordinance.
Director Lait stated there were two tables in the tree ordinance. The first was by right
standards, which Staff cannot do anything about. For table two, the Forestry team would
review for any concerns.
Council Member Burt questioned where in the issues independent utility falls.
Director Lait believed that was in the City Utilities policies and procedures rather than the
zoning ordinance. The State preempts the City from requiring additional meters, but separate
meters are allowed for electricity and water if the homeowner chooses. It is not currently
allowed for sewer.
MOTION: Council Member Lauing moved, seconded by Mayor Kou, to approve section A and
modify language in section 18.09.040(k)(1) Except on corner lots where feasible.
There was discussion about the wording of the motion.
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MOTION PASSED: 7-0
Mayor Kou asked for further explanation on item B vii and then item E i.
Planner Sauls gave an example of a layout with a current requirement of one covered parking
space and then one uncovered space next to it. The City and State provide that in converting a
garage to an ADU, those covered parking spaces do not need to be replaced; however,
uncovered parking spaces are not discussed. The suggested language was to effectively allow
for the uncovered space to be replaced in the front yard setback in the driveway area. It would
mirror the rule for a garage being converted to a JADU currently, allowing the covered space to
be replaced as an uncovered space in the driveway. This would also apply to a new build.
Regarding E i, he explained how floor area was currently calculated in the zoning code and how
that would be affected by adding an ADU.
Council Member Tanaka asked if basements were now allowed under ADUs. He also
questioned the reasoning for the current policy. He felt that basements had no negative
impacts on the neighbors and may allow more housing for the City. He supported allowing
basements under any structure with a foundation.
Planner Sauls stated basements were allowed under Table 1 units if there was no other option
to develop on the site above ground, but basements were not allowed underneath ADUs that
encroach into the setbacks for the main house. The current policy was a carryover from the
ordinance before 2020, which was not as permissive for that type of development, and primary
homes are also not able to have a basement within the setback area.
Council Member Tanaka asked about the policy for floor area ratio and wondered why it was
not consistent with current rules because, again, it does not impact the neighbors. One
pushback on ADU conversions was parking, and he felt this would also help relieve off-street
parking.
Planner Sauls stated there was a specific square footage limitation for these units and the way
to properly capture the limitation would be to include the habitable space of a basement
toward the square footage.
Director Lait stated the discussion about parking in basements was not a part of this proposal,
but Staff could come back at a later date to talk about a code change.
Council Member Veenker asked if there was a status update on the issue of two-story ADUs.
Director Lait stated Staff would need the direction to pursue that change if Council wished to
explore it. It was not currently a part of the work plan to extend the two-story height limit for
ADUs beyond what the State has established.
Council Member Veenker asked for elaboration on the concerns about the affordability
program, including the eight-year period being shorter than the typical length affordable
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housing tenants remain and tenants who might later exceed the income threshold having to
move because there are not alternative units for higher-income people.
Planner Sauls stated those items were all discussed in the PTC on how to make this program
possible. There were 8 to 10 different policies considered to be a part of this program, and
most were pulled out because it was not felt to solve the issue of having deeper levels of
affordable units available. Based on the available market data, the rents for ADUs were
comparable to those of traditional rentals, so the planned range was partially already being met
by the market. In order for it to be a more affordable unit, it would have to be a lower level of
income, which could be challenging for someone hoping to recoup the cost of building the ADU.
Council Member Veenker hoped to continue to find a way to have an affordability program.
Director Lait believed this was an area to collect more information and there were plans to do
so with surveys as set forth in the housing element.
PTC Vice Chair Chang sympathized with the desire to want to make something work but the
amount of incentive needed for one unit of housing was a lot. It was different for an entire
apartment building with different tax incentives and financing than a single homeowner can
access. The owner living on the property usually wants more power over who their tenant is,
possibly related to noise, pets, children, etc., and with affordable housing, the landlord does
not have that option.
Vice Mayor Stone was not quite ready to drop the idea of affordable housing. He stated if
someone builds an ADU, they cannot be forced to use it for housing and asked if Staff had
looked into incentives for that as well.
Planner Sauls stated there was not a capability to monitor whether the ADU is being used for
housing. The monitoring would be more related to whether the tenant would still qualify for
the income category.
Vice Mayor Stone discussed potential incentives that might be offered to use ADUs for housing.
He felt it was critical to have the rental registry because the data was so important. He asked if
Staff anticipated any additional dewatering requirements with ADU basements. He also
mentioned discussing in the future creating streamlining processes for ADUs with companies
that create pre-fab structures.
Director Lait stated there were no additional rules proposed in relation to how it might affect
the water table. He stated there had been discussion about creating additional incentives for
affordable J/ADUs
Council Member Lythcott-Haims was also curious to figure out the right incentives for people to
develop these units for affordable housing. She would like to consult someone on what would
have to be offered to make this work. She also wanted the issue of two-story ADUs to come
back at some point. She did not want the tree ordinance to get in the way of building ADUs and
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asked when the review of that was coming. She did not want to see that ordinance enforced
against the creation of J/ADUs. She appreciated the letter from the Palo Alto ADU Task Force
regarding the differing impact fees based on the size of the main house and wanted to look
more closely at that.
ORIGINAL MOTION: Vice Mayor Stone moved, seconded by Council Member Burt, to approve
sections B, C, D, and E and adopt the draft ordinance amending Palo Alto Municipal Code Title
18 (Zoning) to amend regulations for Accessory Dwelling Units (ADUs), Junior Accessory
Dwelling Units (JADUs), and Accessory Structures, including provision to respond to direction
from the department of Housing and Community Development (HCD) and refer D back to the
PTC for further refinement and discussion the following:
• Create incentives including exempting or reducing impact fees and plan review fees
from affordable units
• Develop incentives for ADUs to be used for housing
There was discussion on the wording of the motion and the incentives previously explored by
the PTC.
Council Member Veenker suggested there may be some way to discount things like sewer, gas,
electric, water hookups if they are intended to be used for affordable units.
Council Member Tanaka wanted to look at reducing impact fees for all ADUs, whether
affordable or not.
Vice Mayor Stone was not interested in that as he wanted to be able to incentivize affordability
and housing.
AMENDMENT TO MOTION: Council Member Tanaka, seconded by Council Member Lythcott-
Haims, moved to add to the motion: exempt basement floor area from ADUs and JADUs.
Council Member Tanaka felt it was important to use all the tools to solve the housing crisis.
Basements do not cause big neighborhood impacts and can add more housing without bigger
structures above ground.
Mayor Kou questioned if this would mean the basement of an ADU could go the full extent of
the main house.
Planner Sauls stated it would be just for J/ADUs and the City code and state law have very
specific size limitations.
Director Lait clarified that it would double the amount of usable floor area, increasing a JADU
from 500 to 1000 sq ft and an ADU from 1000 to 2000 sq ft.
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Vice Mayor Stone stated Council Member Tanaka often speaks to smaller units being less
expensive. With an affordability issue, this motion would make the units larger and therefore
more expensive.
Council Member Burt added that basements were inherently more expensive to construct than
above ground. In addition, there was no parking requirement for what could potentially be a
2000 sq ft home.
Council Member Tanaka felt the community needed more housing of all types and that this
would free up more space for other people. He added that a basement could potentially be
broken into smaller spaces, creating additional units.
Council Member Veenker questioned whether there was a CEQA impact.
Planner Sauls stated these projects were reviewed ministerially and exempt from CEQA. He
also pointed out how exempting basement from square footage area could affect impact fees.
Director Lait stated the enacting legislation would be subject to CEQA but he believed it would
be exempt.
AMENDMENT TO MOTION FAILED: 2-5, Lauing, Veenker, Stone, Burt, Kou no
There was further discussion on the wording of the original motion.
ORIGINAL MOTION PASSED: 7-0
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.