HomeMy WebLinkAbout2024-09-23 City Council Summary MinutesCITY COUNCIL
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Special Meeting
September 23, 2024
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, Lythcott-Haims, Stone, Tanaka, Veenker
Tanaka Arrived at 5:33 P.M
Lythcott-Haims Arrived at 5:35 P.M.
Present Remotely: Lauing
Absent: None.
Roll Call
Mayor Stone called the meeting to order. Mahealani Ah Yun, City Clerk, called roll noting five
present.
Vice Mayor Lauing invoked the Just Cause Provision of AB 2449. He disclosed 1 person over 18,
his spouse, was present in the room with him.
Agenda Changes, Additions and Deletions
Kiely Nose, Assistant City Manager indicated there were no changes.
Closed Session
1. Tentative: PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Authority: Cal. Gov. Code section 54957(b);
Title: City Attorney, City Clerk
Item Removed Off Agenda
AA1. PUBLIC EMPLOYEE PERFORMANCE EVALUATIONS
Authority: Cal. Gov. Code section 54957(b)(1)
Titles: City Manager, City Attorney and City Clerk
Public Comment:
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1. Tom H. expressed disappointment in the City Manager’s decision in response to his
complaints about the City’s management of middle school athletics program. He stated
the City Manager and staff refused to discuss cooperating with the nonprofit
organization he founded as an alternative to the City program. He asked that his
feedback be considered during the City Manager’s performance evaluation.
2. Weifeng P. spoke about the City Manager and his department denying the opportunity
for the JLS Cross Country Team run by Coach Tom's nonprofit to participate in the
league competitions.
MOTION: Council Member Kou moved, seconded by Council Member Veenker to go into
Closed Session.
MOTION PASSED: 7-0
Council went into Closed Session at 5:38 P.M.
Council returned from Closed Session at 8:46 P.M.
Mayor Stone announced no reportable action.
Public Comment
Mayor Stone outlined the Council’s policies on public comment and laid out ground rules.
1. Tom H., pastor of First Presbyterian Church Palo Alto, spoke about the City’s withdrawal
of support of the recent Multifaith Peace Picnic and due to objections raised regarding
the participation of a long-time co-sponsor of the event. He understood some feeling
the need to withdraw support with the last-minute controversy popping up but urged
everyone to know what they were getting into in the future when supporting multifaith
work.
2. Avram F. discussed a controversy over a poster entitled “Stop US Aid to Israel”.
3. Steve R. commented about “no parking” signs placed in front of businesses on El
Camino. He wished Palo Alto and Caltrans could have included businesses along El
Camino Real and stated that parking is the lifeblood of retail business.
4. Samina S., founder of American Muslim Voice Foundation, talked about discrimination
her organization has recently experienced having been labeled as a terrorist
organization. She requested to know what basis this decision had been made on.
5. Thomas S. spoke about his sister leaving him at the hospital with MRSA and about a
towel he invented for women at the beach.
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6. John K. suggested providing a light so people could read the version of the agenda. He
requested that the tables presented in the staff reports be accompanied by a CSV or
Excel file to make it more accessible.
Council Member Questions, Comments and Announcements
Council Member Veenker announced that the Sibling City USA sponsored town hall on
democracy, voter access and turnout on Sunday at 1:00 would be online only. The second one
on housing in October would be in-person. She mentioned that the Bay Area Air Quality
Management District would be attending the Clean Air Day to answer questions about the
upcoming appliance rules and other clean air things.
Council Member Burt shared that about 8000 people attended the Palo Alto Intermodal Center
event. He encouraged the Mayor, Vice Mayor and City Manager to bring the review to
determine whether they will take positions on state and local ballot measures to an earlier
date.
Council Member Lythcott-Haims mentioned the upcoming election and urged people to attend
the candidate forum being held at Mitchell Park from 7 PM to 9 PM on October 3.
Council Member Kou gave a report on the Retail Ad Hoc that took place on September 18
where the Retail Committee discussed recommendations from staff as well as what Planning
and Transportation Commission had discussed and recommended to enhance and facilitate
retail and economic vibrancy throughout the city as part of the City Council's Economic and
Development Transition Priority for 2024. The Retail Committee recommended City Council
move on some immediate, near-term and longer-term items. This would be coming back to
Council for formal action on each of the phases. The Retail Ad Hoc Committee did have some
formal action to take place in immediate phases in the near term. Some will be going back to
Planning and Transportation Commission for review and discussion. At the longer term, staff
will be working on Comprehensive Zoning Ordinance update.
Mayor Stone encouraged everyone to go to the Clean Air At Home event at the Mitchell Park
Community Center September 28 from 1:00 to 3:00 PM and Bike Palo Alto on October 6 from
1:00 to 3:00 PM at Fairmeadow School.
Consent Calendar
1. Jade C. - Item 8 – spoke in support of Item Number 8.
2. John K. - Item 3 – submitted that there is not information nor language in the ordinance
that would accomplish the goal. He explained how enacting this would create impact-
free zones for huge swaths of R1 districts in Palo Alto and the issue of what to do about
proportionality analysis for ADUs not being charged impact fees for homes that are
scraped or rebuilt.
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3. Penny E. (Zoom) shared about the Bike Palo Alto event.
4. Carol B. (Zoom) – item 8 – spoke in appreciation of the Council’s support of Item 8.
5. Amie A. (Zoom) – commented on Item 3 stating that single family fees are substantially
lower than multifamily fees and represent a real source of embedded inequality in our
housing system and that they are showing 0 units approved to meet the housing
element goals. They have a long way to go in removing barriers to housing including
high and inequitable fees. She looked forward to the fee study that will be coming in
December 2025 and substantive and what we hope will be important changes in 2026.
Council Member Tanaka registered a no vote on Agenda Item Numbers 4 and 6.
Council Member Kou registered a no vote on Agenda Item Numbers 6 and 9.
Council Member Lythcott-Haims, Veenker, and Stone requested to pull Agenda Item Number 3.
MOTION: Council Member Veenker moved, seconded by Mayor Stone to approve Agenda Item
Numbers 2, 4-9 and to pull Agenda Item 3 of consent (to be heard at a date uncertain).
MOTION PASSED ITEMS 2, 5, 7, 8: 7-0
MOTION PASSED ITEM 4: 6-1, Tanaka no
MOTION PASSED ITEMS 6: 5-2, Kou, Tanaka no
MOTION PASSED ITEMS 9: 6-1, Kou no
Council Member Tanaka voted no on Item 4 because there was no range of bids and the scope
of the task order was unclear. He voted no on Item 6 because it was an extension but there had
been no performance review of the vendor. He thought the City’s procurement process was in
need of improvement.
Council Member Kou echoed Council Member Tanaka’s views on Item 6. On Item 9, she could
not certify the environmental report when there are mitigations on paper that do not equate to
living through the impacts and having no parking for people with disabilities seemed to be
discrimination and a legal issue.
2. Approval of Minutes from September 9, 2024 Meeting
3. Adopt an Ordinance Amending the Municipal Fee Schedule to Modify the Calculation for
Park, Community Center and Library Development Impact Fees From per Unit to per
Square Feet for Residential Development. CEQA Status: Exempt Pursuant to 15061(b)(3).
4. Approval of Four (4) Professional Services Contracts for Reliability and Resiliency On-Call
Services for a Period of Up to 5 Years to Support the Implementation of Palo Alto’s
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Reliability and Resiliency Strategic Plan as Needed: 1) Contract Number C25189412A
with Buro Happold in an Amount Not to Exceed $450,000; and 2) C25189412B with
EcoMotion, C25189412C with Energeia, and C25189412D with Energy and
Environmental Economics, Inc. (E3), in an Amount Not to Exceed $250,000 (Each); CEQA
Status – Not a Project.
5. Approve a Revised Project Boundary for the Ongoing Downtown Housing Plan Project.
CEQA Status: Exempt per 15061(b)(3)
6. Approval of Contract Amendment Number 3 to Seven Contracts in the amount of
$750,000 for On-Call Services to Provide Expertise for Long-Range Planning Projects,
Application Processing, Environmental Review, and Other Planning Analysis in the
Planning and Development Services Department. CEQA Status: Not a Project.
7. Approval of Two Audits as Recommended by the Policy & Services Committee: Public
Safety Construction Audit and Parking Permit Technology Contracts Audit
8. Adoption of an Ordinance Updating Palo Alto Municipal Code Chapter 4.64 (Permits for
Retailers of Tobacco Products) to Conform with County Amendments and Approval of
the Updated Agreement Between the County of Santa Clara and City of Palo Alto for a
Tobacco Retail Permit Program; CEQA Status – Not a Project
9. REINTRODUCED FIRST READING: Adopt an Ordinance Adding Chapter 18.29 and
Amending Chapters 18.14, 18.24, 18.70, and 16.65 in the Palo Alto Municipal Code as
well as Amendments to the Zoning District Map, and Rezoning of Parcels Within the
NVCAP area (PREVIOUSLY INTRODUCED: August 5, 2024 PASSED 6-1, Kou no)
City Manager Comments
Assistant City Manager Nose thought it best to do a date uncertain regarding Item 3 and she
would work with the Mayor and Vice Mayor to find a date. She noted that staff had shared the
National Weather Service Heat Advisory in effect for that day and the next day. Temperatures
were expected to rise over the coming weekend. She provided a slide presentation discussing
upcoming community events and activities, opportunities to engage and volunteer, the Junior
Museum and Zoo pricing changes, notable tentative upcoming Council items and ways to share
input and stay informed.
Action Items
10. Review the Procurement Process Review Audit and Supplemental Information Regarding
Competitive Solicitation Outcomes and Approve the Audit
Mike Chimera, Baker Tilly Manager, gave a slide presentation about the results of the
Procurement Process Review Audit to include a highlight of the objectives, 50 contracts
sampled from FY22 and FY23, finding 1: supporting documentation for contract award, finding
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2: purchasing manual inconsistencies, finding 3: needs assessment and market analysis and
finding 4: vendor record creation.
Kate Murdock, City Auditor, joined the presentation discussing ASD management response.
Council Member Kou explained a change of management was the reason this was not
unanimously voted on and was brought to Council.
Council Member Burt remarked that the use of a checklist and the needs assessment were
sound recommendations. He requested implementation schedules on the audit
recommendations from staff.
Lauren Lai, Administrative Services Director/ CFO, instructed finding 1 relates to the checklist
that will roll out by December of this year. Finding 2 relates to updating the purchasing manual
and will be updated in November. Finding 3 relates to the needs assessment and is being
incorporated at this time. Finding 4 relates to developing a fix to adjust the SAP issue and is
being worked on currently.
Council Member Tanaka asked for explanation on finding 1 in terms of failed testing of 2
contracts. He wanted to know how this issue would be mitigated. He talked about not having a
range of bids on contracts. He wanted to know if any research had been done on that issue. He
felt there was a breakdown in the procurement process with single bids. He advised
investigating why they only get one bid.
City Auditor Murdock explained they had an original sample of 50 contracts and 2 did not have
the competitive bidding process exemption form filled out. She stated that the mitigation of
this issue was part of the checklist recommendation. She recalled that they looked at the staff
reports as part of if the information was being communicated but not that specific issue. She
remarked that there were instances where there was only one vendor in a particular contract
space. She felt not putting more detail in the audit report about all the work that was done was
a failure on their part but they did look at the competitive bidding process and whether it was
reasonable and that is why there are no findings related to that in the report.
Director Lai summarized the practice of how bid summaries are reported. She commented
subsequent to the P&S committee meeting she asked staff to aggregate all the formal bids we
did in that past year to follow up on this. It turned out that purchasing staff does research on
solicitations that have zero or one bid results. They contact other vendors that might have
pulled down the solicitation and inquire as to why they did not submit a bid. They keep a record
and a notation in the SAP. In their research, it was found either some of them don't have the
time to respond or some responded that they did not have the availability or bandwidth to take
on the City project or the products or expertise as described in the scope of work. She
remarked when they have low bids they do research to find out why some of the vendors did
not respond.
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Assistant City Manager Nose explained each of the contracts are attached to the staff report
and they all have a Schedule C which shows the hourly rates depending on the individuals
within that contract that will be working on a task order or a project.
Council Member Tanaka suggested adding the reasons people refused to bid in the staff report.
He thought it would be helpful to benchmark other cities and to think about why vendors are
reluctant to bid on their projects. He did not understand why there was no explanation in the
staff reports when a bid was disqualified.
City Auditor Murdock indicated benchmarking was something they do in some of their audit
reports but they did not in this report. She admitted they went over budget with this project
and there were constraints. She remarked that benchmarking is very difficult.
Mayor Stone clarified that the summary of the vendor feedback was actually in the staff report.
He wanted explanation about the six contracts found to not have included all the key
documentation.
Council Member Lythcott-Haims agreed with Council Member Tanaka’s premise that one bid is
potentially problematic. She indicated they learned at P&S that the questions they were asking
about one bid were beyond the scope of the audit sought. There was a lack of familiarity at
Baker Tilly owing to turnover. She wanted to know why only 11 contracts were checked.
Ms. Murdock answered budget and time constraints were the limitations on checking the
contracts.
Council Member Veenker appreciated Council Member Tanaka's concern and persistence on
this issue being good stewards of the city's budget and resources. She appreciated the audit
and supported the motion. She commended the staff for their willingness to receive feedback.
Mr. Chimera remarked that it was undetermined why the documentation was not included in
the six contracts.
David Ramberg, Assistant Administrative Services Director, commented in two cases
disagreement was had with the City Auditor. There were two instances in which they indicated
that their opinion was that they should have an Appendix E for two exemptions. The current
practice is that there is a broad array of exemptions that are outlined in the municipal code in
which they require an exemption approval process through the Appendix E form for those that
require a judgment call by staff and need to be authorized all the way through the organization.
There are a number of exemption points in the municipal code that point to exemptions by
definition. One of those examples is legal contracts are exempt by definition so they do not
prepare a form when they are exempt by definition. There is a host of other examples in the
municipal code that have those similar types of defined exemptions. To lessen the burden of
administrative processing, they do not push a form through the process for that. They have
worked closely with their partners in the organization to validate that as an appropriate
process. There were two examples where the City Auditor thought that they should have had
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an Appendix E in those. They talked with them and acknowledged that they were going to go
forward with that opinion. They subsequently pointed out that they did not have an Appendix E
for the stated reasons.
Vice Mayor Lauing opined that as it was normal procedure to use sample sizing in an audit, they
received a high quality audit.
Council Member Tanaka expressed appreciation for Baker Tilly’s work on the audit and hoped
in the future they would do more around the performance of the procurement. He clarified
that he was talking about missing information in other staff reports. He emphasized the
importance of vendor management and review when renewing vendor contracts.
Ms. Murdock thought that there were ways to work performance measures and expectations
into contracts. She did not know if there were liability concerns with putting a vendor
performance in in a document like a staff report. She would need to research the issue.
MOTION: Council Member Lythcott-Haims moved, seconded by Mayor Stone to approve the
Procurement Process Review Audit.
MOTION PASSED: 7-0
Adjournment: The meeting was adjourned at 10:07 P.M.