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HomeMy WebLinkAbout2024-12-16 City Council Summary MinutesCITY COUNCIL SUMMARY MINUTES Page 1 of 18 Regular Meeting December 16, 2024 The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:31 p.m. Present In Person: Burt, Kou, Lauing, Lythcott-Haims, Stone, Tanaka, Veenker Present Remotely: Absent: None Call to Order Mayor Stone called the meeting to order. The clerk called roll and declared all were present. Special Orders of the Day 1. Proclamation Expressing Appreciation to Dean Batchelor Upon His Retirement NO ACTION Vice Mayor Lauing read the proclamation. Utilities Director Dean Batchelor thanked Vice Mayor Lauing for the kind words. He voiced that over his 16 years he could not have been successful without the Palo Alto City Council. He thanked City Manager Ed Shikada and the City for having allowed him to be the Utilities Director. Mayor Stone invited Director Batchelor to the dais for a photo. Vice Mayor Lauing added that he had had the pleasure of working closely with Director Batchelor in the last two years on the UAC. All the members respected him for his transparency, his honesty, and his dialogue to ensure that the best ideas would be presented to Council. He spoke of Director Batchelor successfully recruiting folks for the Utilities Department. He thanked Director Batchelor. Councilmember Burt stated that he had worked with Director Batchelor for many years but closely for the last four years on the Finance Committee and on the Sustainability and Climate Action Plan. He commented that Director Batchelor should be proud of his achievements. SUMMARY MINUTES Page 2 of 18 City Council Meeting Summary Minutes: 12/16/2024 Councilmember Veenker echoed Vice Mayor Lauing and Councilmember Burt’s comments related to the talent and service he had brought to the City. She thanked him for tutoring her and for his patience. She spoke of him being modest, humble, and classy. She was impressed with how he mentored his team and how much he cared about his employees. Councilmember Kou completely agreed with her colleagues’ comments. She thanked Director Batchelor. She had observed that he had a quiet strength and confidence, which gave her confidence. She thought Council sought advice and guidance from him more than he from Council. Councilmember Lythcott-Haims thanked Director Batchelor for his years of service. She had learned much from him on the Finance Committee. She was grateful for his guidance and would miss him. She wished him the very best. Mayor Stone seconded the stated comments. He voiced that Director Batchelor had been a mentor. He thanked him for his leadership and service, which had led to the City’s accomplishments. He would be missed, and he hoped he would stay in touch. Councilmember Tanaka echoed his colleagues’ comments. He appreciated all Director Batchelor’s work. 2. Proclamation Recognizing Gunn High School Pickleball Club NO ACTION Mayor Stone recited the proclamation, which he was honored to do. He invited the Gunn High School Pickleball Club to speak and to the dais for a photo. The Gunn High School Pickleball Club did not speak but approached the dais for a photo. Closed Session 3. CONFERENCE WITH CITY ATTORNEY—POTENTIAL LITIGATION Subject: Potential Litigation Regarding Adequacy of City of Palo Alto Housing Element, As Set Forth in Letter Dated August 2, 2024 from David Lanferman, Esq. Authority: Government Code Section 54956.9(d)(2) One Case, as Defendant Public Comment: There were no requests to speak. MOTION: Council Member Burt moved, seconded by Council Member Lythcott-Haims to go into Closed Session. MOTION PASSED: 7-0 SUMMARY MINUTES Page 3 of 18 City Council Meeting Summary Minutes: 12/16/2024 Council went into Closed Session at 5:56 p.m. Council returned from Closed Session at 7:05 p.m. Mayor Stone announced no reportable action. Agenda Changes, Additions and Deletions City Manager Ed Shikada declared there were no changes. Public Comment Mayor Stone reminded the public of some of the new policies. Ken H. advocated for a sugary drink tax. He provided a handout related to Santa Cruz passing such a tax and Berkley reaffirming their tax and making it permanent. He thought the tax would provide the City up to $2M, which could fund programs. He wished Councilmembers Kou and Tanaka the best and thanked them for their service. Shani K. discussed and showed videos of the king tide occurrence that happened in the Baylands on Saturday. Anna F., a City employee and SEIU member, spoke of the City vacancy rate being 10 percent but retention still being an issue. She discussed the importance of the Water Quality Control Plant having experienced staff at all times and stated that take-home pay should compete with water quality control districts. She voiced that cutting corners on the COLA and health insurance premiums was a problem. Jaya U. asked Council to invest in City employees more. He provided examples how that could be done as it related to COLA, increasing contributions to healthcare premiums, etc. He requested that Council work with the bargaining team to learn more about the aforementioned benefits and others. Sophia H. hoped Council would further invest in the City’s workforce and support livable wages and benefits, which she commented would benefit the local economy and ensure emergency preparedness, public health, etc. She attested to the honesty and hard work of the City employees she knew personally. Riko M., the Chief Elected Officer of SEIU Local 521, spoke of a study done in about 2010 showing Palo Alto having the largest and highest amount of City services per capita in the world. He was proud to represent the employees. He hoped their proposals would be taken into consideration by Council. He opined that inspectors and 911 Dispatch were in crisis. He requested that there be investment in the employees. They wanted a contract now. Ratu read a statement for a coworker, Marlon Kasberg, a zookeeper at the JMZ, which addressed healthcare not existing for part-time employees and that a fair union contract should SUMMARY MINUTES Page 4 of 18 City Council Meeting Summary Minutes: 12/16/2024 enable part-time employees affordable healthcare. He stated that other cities in the Bay Area provided benefits at the 30-hour level of work, and he asked Palo Alto to echo that and to work with his union to improve working conditions. Ratu thanked Riko M. for his comments. Patricia W., a lead public safety dispatcher with the City for 17 years, expressed that in those 17 years the Dispatch Center had never been fully staffed. They did not receive compensation for being on call and requested to be compensated and recognized for lost days off. She asked the City to work with SEIU to come to an agreement for fair compensation and to recognize the sacrifices made by dispatchers. Melody T., a librarian, quoted a portion of Martin Niemöller’s First they came. She voiced that the negotiations were not just about money and healthcare but also about rights and protections and that hard-won rights should not be traded for money. She felt that COLA and healthcare needed to be addressed and asked the City to help the union bargain for a fair contract. Mark E. stated that City employees were genuine, caring, and loving people with families. He voiced that studies had shown that employers who paid employees their worth retained their workforce and saved the employer money. He spoke of valuable employees leaving Palo Alto for more money, which left current employees with a larger workload. He discussed not being able to afford to live in Palo Alto. He suggested some positions have the option of working from home, which would cut long commute times. He would email additional remarks. Susan L. supported library staff having better healthcare benefits. She stated that the priority of the community should be to attract and keep the best employees. Rebecca K., a senior librarian and member of the SEIU Local 521, discussed retention and recruitment challenges. She voiced that a fair union contract supporting competitive wages and benefits was essential in preserving a skilled and dedicated workforce. She asked Council to work with her union to improve working conditions. Joe H. had recently received notice that his homeowner’s and earthquake insurance would not be renewed after having the policy for many years. He noted that part of the reason had to do with trees and vegetation needing to be trimmed to clear dwellings by at least five feet. He wanted to know if the City could do anything to protect the canopy if this should become pervasive throughout the city. Council Member Questions, Comments and Announcements Councilmember Veenker shared that on December 12 the Executive Committee of the League of California Cities Peninsula Divisions had its annual retreat. She thanked City Manager Ed Shikada for attending. On January 24, there would be a legislative address in South San Francisco, which would focus on upcoming legislative activities. There would be a luncheon event on economic development in January, which would be in or near Palo Alto, and she would provide more information in January along with there being a new Councilmember SUMMARY MINUTES Page 5 of 18 City Council Meeting Summary Minutes: 12/16/2024 luncheon for the peninsula. Legislative action days would be in Sacramento in April and a climate event with students in August, and she would provide updates in the future. BAAQMD had two meetings in two weeks related to no-NOx appliances, which were on track for the same schedule as previously and would come into effect for water heaters on January 1, 2027 and HVACs on January 1, 2029. She had been selected to be the vice chair of that board. All were invited to join the caroling event that would take place Saturday on University Avenue. Councilmember Lythcott-Haims congratulated Councilmember Veenker on her appointment as Vice Chair of BAAQMD. Mayor Stone spoke of his attending a mayors’ conference in Southern California to combat antisemitism. He had learned tools and made strong connections to continue combatting hate. He was looking forward to working with his colleagues to ensure everyone feeling safe and welcomed in Palo Alto. Study Session 4. Discussion of 2024 City Council Ad Hoc Committees Activities NO ACTION Assistant City Manager Kiely Nose displayed slides and discussed the Council Ad Hoc process, which allowed councilmembers to gain greater depth in certain areas. Each ad hoc had a purpose statement, and this item was an opportunity for Council to collaborate on ad hoc activities. The P&P Handbook contained ad hoc committee guidelines and their intended use, which she elaborated on. She explained that ad hocs could meet without Brown Act procedures unless an ad hoc continued past their temporary or limited time period. She furnished a slide listing Council’s standing and ad hoc committees of 2024. The standing committees were all Brown Act bodies and two of the ad hocs performed in a Brown Act body procedural fashion. The P&S Committee had met on December 10 to discuss 2025 priority setting, and she provided a slide with the unanimous motion. There was a recommendation that the 2025 mayor not make councilmember appointments to ad hoc committees prior to the 2025 annual retreat. The annual retreat was scheduled for January 25, 2025. At this meeting, Council would receive the ad hoc committees’ reports from the seven 2024 ad hocs. Councilmember Lythcott-Haims, Chair of the Cubberley Real Estate Transaction Ad Hoc Committee, stated that the ad hoc had a limited purpose and duration. The transaction was to determine how to acquire the real estate for intended use, and presumably a new ad hoc would be created to focus on the design of the redevelopment and the bond effort intended to fund it. It had been a rewarding process that she was grateful to have been a part of. Councilmember Burt asked when discussions would occur related to next year’s ad hocs, Brown Acted committees, or purviews on a given topic, such as an ad hoc to move the Cubberley plan forward. SUMMARY MINUTES Page 6 of 18 City Council Meeting Summary Minutes: 12/16/2024 City Manager Ed Shikada responded that P&S recommended that the 2025 ad hoc discussion be part of the retreat, which would include determining the ad hocs. The memberships were a mayoral responsibility. He believed that recommendation would be brought to Council for discussion on January 13, and Council could decide to have that discussion at the retreat or a different direction could be taken. There would potentially be action on the 13th. Councilmember Burt was hesitant to delay appointing ad hocs until after the retreat because they would not begin until mid to late February and some topics were time sensitive. He noted that there was great urgency with Cubberley. Mayor Stone asked if the current Cubberley Ad Hoc could continue until a new ad hoc was set up. City Manager Shikada remarked that Council had approved a Cubberley work plan, so staff was getting Concordia under contract and organizing staff resources to support the effort. In terms of the work to be done, no time would be lost. He suggested continuing the strategy discussion informally irrespective of what might be done with the ad hoc. City Attorney Molly Stump answered that the Cubberley Ad Hoc had concluded its work as defined. She thought the 13th would be a preliminary opportunity to discuss the committees in context with all the other interests and needs. There was not a formal process for closing a committee, but the committee had not been meeting, which was appropriate because its goal had been met. Councilmember Burt was still concerned with losing time as he did not think the ad hoc would convene before late February. Councilmember Kou inquired if determining the purpose for the next Cubberley Ad Hoc would be discussed on the 13th, voted on at the retreat, and if staff would then meet with consultants regarding the scope. She wanted the next mayor to know that he or she not making councilmember appointments to ad hoc committees prior to the 2025 annual retreat was not meant to circumvent the new mayor but was to have time for Council to meet and determine ad hocs, to have more discussion at the retreat, and for new councilmembers to understand what the ad hocs would be discussing and them being included in the discussion in January. City Manager Shikada replied that there was a scope for Cubberley and the contract was being put in place to get the consultant started. That work was not waiting on an ad hoc to continue. The strategic work for Council guiding the product of the work that Concordia would be doing to ensure it meeting the needs and level of support needed for the anticipated funding would occur over the next calendar year, so the work could proceed. They expected Council’s approval of the recommendation to come on the 13th and then determining how ad hocs would fit into that would occur at the retreat. Councilmember Lythcott-Haims wanted to continue the Cubberley process as soon as possible, but she was optimistic that the current proposal was workable. SUMMARY MINUTES Page 7 of 18 City Council Meeting Summary Minutes: 12/16/2024 Councilmember Burt suggested some committees be continuous without needing to be reformulated. Councilmember Veenker, Chair of the Climate Protection Ad Hoc Committee, spoke of there being a great upgrade and expansion of the working group. At the last few meetings, there had been an upsurge in energy and commitment to hit the 80 x 30 goals, and there was a realization that the City should support residents and businesses in reaching those goals. She shared a photo of the working group. She noted that the committee had sometimes been constrained, and she hoped the committee could be transitioned into a Brown Acted standing committee. Councilmember Kou was surprised that a biologist or someone from Canopy was not part of the group, and moving forward, she asked that such be included in the discussion. Councilmember Veenker stated it would be nice to have a Brown Acted committee that could bring sustainability in, which they could not do the past year. Councilmember Burt, Chair of the El Camino Ad Hoc Committee, noted that the committee had focused on the El Camino Plan and the Parking Mitigation Program. He thought the tasks had been largely completed. He and the Vice Mayor wanted to ensure that the Parking Mitigation Program would be adjusted as needed, which staff seemed to be focused on. He did not think there was a need to continue the ad hoc. Vice Mayor Lauing, Vice Chair of the El Camino Ad Hoc Committee, wanted to keep an eye on the mitigations in terms of short-term parking for drop-offs and implications on neighborhoods when trying to find new parking spaces. He declared success for the ad hoc. He concurred that the ad hoc was logically at the end of their work. Vice Mayor Lauing, Chair of the Housing Ad Hoc Committee, stated that the team and planning had focused on the Housing Element, as they should have, but it compromised other things getting done. They had made progress on a strategy for affordable housing fundraising. Councilmember Lythcott-Haims questioned if the ad hoc would be ending and if so if there would be a new mechanism for Council to be involved in a San Antonio Area Plan. She wanted to ensure there would be coordination as it related to Cubberley and San Antonio. Vice Mayor Lauing opined that there needed to be some kind of housing committee whether it be Brown Acted or an ad hoc. He added that there should also be coordination for amenities for a new neighborhood. City Manager Shikada suggested the preferred mechanism be discussed by Council in January. Councilmember Burt added that the VTA had a public meeting on the preliminary planning for reconstruction for the San Antonio and 101 and the Charleston and Rengstorff interchanges, which he elaborated on. He mentioned that it would be important to engage with VTA. SUMMARY MINUTES Page 8 of 18 City Council Meeting Summary Minutes: 12/16/2024 Councilmember Burt, Chair of the Rail Ad Hoc Committee, thought a lot of progress had been made. He had spoken to the City Manager about getting quite zones and safety and security topics to Council for discussion and potential action to address the noise through quiet zones or wayside horns and combining quiet zones, wayside horns, and signal optimization. Caltrain would be updating their business plan in 2025 with a lower projection of train growth than what had been projected previously. The cost of grade separations had greatly increased. Caltrain’s corridor crossing strategy now included an enhanced grade crossing strategy, which he explained. There may be a package of measures that could provide 70 percent of the benefits being sought from a grade separation at a fraction of the cost and time. The committee expressed enthusiasm in pursuing an enhanced strategy as an alternative on Churchill, at least for the foreseeable future, which he detailed. He recalled that the City Manager said it would be an opportunity to have a conceptual discussion about that. It would need to be agendized so the full Council could decide if this should be considered. He asked when it could be agendized if Council had an interest in that. City Manager Shikada thought it could be agendized soon in the new year and that much of the work that had been done could be presented as a package. Councilmember Lythcott-Haims supported it coming to Council. Councilmember Kou, Chair of the Retail Ad Hoc Committee, stated that merchants and businesses were concerned with cleanliness, messiness, etc., and staff had been addressing that. Moving forward, she thought it needed to be determined through staff, the merchants, and the committee what would be done near, mid, and long term. There had been a study session last month concerning options to address retail vacancies downtown, which had been informative. A panelist had noted that Palo Alto had higher commercial lease prices than Burlingame, which she thought warranted research. She asked that the committee continue to include the Midtown Business District in discussions. Councilmember Burt considered Midtown to be the third downtown and important. There had been a number of near-term measures taken, and he thought the businesses and the public should know about that package. It had been discussed that medium-term measures would be done between now and going forward with the long-term plan, and he thought the next target should be determining what those would be. He asked if the Cal Ave closure had been extended and if there was a plan to agendize the permanent parklet matter. City Manager Shikada responded that extension of the Cal Ave closure was on consent for this meeting. He thought the permanent parklet issue would come forward after the first of the year. Installation of planters, etc., would occur immediately after the holidays, and because of staff bandwidth, they wanted to do that before moving on to the discussion of the next steps. Councilmember Burt thought it needed to come to Council as folks were anxious for permanent parklets. SUMMARY MINUTES Page 9 of 18 City Council Meeting Summary Minutes: 12/16/2024 Councilmember Kou inquired if the roadwork on El Camino would address the left-hand turn onto California Avenue. She urged that this be part of the Retail Committee’s discussion moving forward. City Manager Shikada answered that staff had been working with Caltrans and the new striping would reflect a more permanent circumstance, but it would not be a permanent installation. As a state highway, they were operating under Caltrans’ constraints, so until there was final legislative action to close the street, it would be temporary. Councilmember Kou, a member of the Stanford Ad Hoc Committee, stated that they had learned a lot from Stanford representatives about how property tax was addressed. There had been a number of discussions about making Quarry Road more accessible and safer for public transportation, pedestrians, and bicyclists. They were learning some of Stanford’s long-term visions. Stanford wanted to work with Palo Alto, but sometimes some of the things they had going on were not very visible to the people of Palo Alto. Stanford was comfortable speaking with the ad hoc, although the people of Palo Alto not knowing what was being discussed might bring some consternation. It had been a pleasure learning from the Stanford representatives. She expressed that collaboration needed to continue, in particular as it related to housing and the Stanford Research Park. She felt there needed to be a safe route through the Research Park for students going from Stanford and from Peter Coutts Stanford Campus toward Fletcher and Gunn High School, and she was looking forward to that being part of the ad hoc’s discussion. Councilmember Burt, a member of the Stanford Ad Hoc Committee, remarked that future agreements for Stanford housing and taxation issues had not been negotiated. It was not intended that the housing Stanford brought forward or intended to propose for the lower Research Park would be restricted to the Stanford workforce, so he understood it would not be exempt from property tax. They were addressing what the Quarry Road extension would mean for the redesign of the circulation of the University Avenue train station area, and the VTA Ad Hoc Committee would be involved with that. Concerning the Bike and Ped Master Plan, they had recently discussed the importance of engaging the Research Park and the university. Regarding the Climate Action Plan, there would ongoing discussions about upgrades to a substation in the Research Park, which may have battery storage capability. Councilmember Lythcott-Haims requested that the Staff Report reflect that she had been a member of the Stanford Ad Hoc for the first half of the year. She stated the Stanford Ad Hoc was built on the potential for a better collaborative relationship with the university. She had found Stanford to be eager to meet with the ad hoc, and she hoped there would be effectiveness while the opportunity existed. Councilmember Kou added that there needed to be discussion concerning where the Stanford Ad Hoc Committee would go from here. She approached such ad hocs with cautious excitement since the public was not included in the discussions. SUMMARY MINUTES Page 10 of 18 City Council Meeting Summary Minutes: 12/16/2024 Councilmember Lythcott-Haims voiced that this had been a wonderful way to learn about the work of the City and Council. The reports gave her a sense of how the biggest priorities were being addressed by Council. Councilmember Veenker echoed Councilmember Lythcott-Haims’ comments and suggested there be reports twice a year. Public Comment There were no requests to speak and no hands were raised. Consent Calendar 5. Approval of Minutes from December 2, 2024 City Council Meeting 6. Adoption of a Resolution Authorizing the City Manager to Transact for Electric Supplies to Meet the City’s Electrical Needs under Electric Master Agreements; CEQA Status: Not a project 7. Adoption of Resolutions Authorizing an Installment Sale Agreement with the California State Water Resources Control Board for Financing of the Local Advanced Water Purification System Project (WQ-19003); CEQA Status - Addendum to the 2015 Environmental Impact Report for the Palo Alto Recycled Water Project (SCH 2011062037) 8. Community Development Block Grant 2025-2030 Consolidated Plan and Authorize Execution of Revenue Agreement with the County of Santa Clara for Annual Action Plan FY 2025-2026 9. Approve a Grant Agreement with the Federal Highway Administration for the South Palo Alto Bikeways Demonstration Project for the receipt of $888,000 in Federal Funds and Requiring $222,000 in City Matching Funds over Four Years; CEQA status – not a project. 10. Approval of Seven Professional Services Contracts C25192617, C24193306 - C24193311, with Safebuilt, LLC, Integrated Design 360, CSG Consultants, Inc., 4LEAF, Inc., True North Compliance Services, Inc., TRB and Associates, Inc., and West Coast Code Consultants, Inc. in the Aggregate Total Not-to-Exceed Amount of $4,000,000 for On-Call Development Services, Inspection, Plan Review, and Green Building Program Services for a Period of Four Years. CEQA Status: Not a Project. 11. Approval of Increase of Construction Contingency for Contract No. C24190072 with O’Grady Paving, Inc. in the Amount of $345,000 to Perform Additional Street Improvement Work on California Avenue and El Camino Real for Capital Improvement Program Projects PL-23000 and PL-12000; and Adoption of a Resolution Continuing the SUMMARY MINUTES Page 11 of 18 City Council Meeting Summary Minutes: 12/16/2024 Closure of a Portion of California Avenue through 2025; CEQA Status – Categorically Exempt under CEQA Guidelines Sections 15301 and 15304 12. Approval of Professional Services Contract Number C25193087 with Rincon Consultants in an Amount Not to Exceed $202,322 for California Environmental Quality Act (CEQA) Review of a Revised Master Plan for the Cubberley Site for a Period of One Year, and Approval of Budget Amendments in the General Fund and Cubberley Infrastructure Fund; CEQA Status – this action will initiate CEQA review of the master plan. 13. Approval of Contract Amendment No 1 to Contract Number C22177024A with CLEAResult Consulting Inc., Extending the Term for Two Additional Years Through November 14, 2026, a Change in the Compensation Structure, and no Change in Not-to- Exceed Amount of $2,571,714 for Efficiency and Electrification Program Services for Small to Medium Business and Commercial Customers; CEQA Status: Not a Project. 14. Approval of Contract Amendment Number 3 to Contract #S20178065 with OIR Group, in the Amount of $20,000 and for a six-month extension to continue Independent Police Auditing Services in Palo Alto. CEQA Status – Not a Project. 15. Approval of Professional Services Contract Number C25192045 with Urban Planning Partners, Inc., in the Amount Not to Exceed of $165,573 for Phase I of the Car Free Ramona Street Project for a Period of One Year, Direct Staff to Return with an Amendment to Approve Phase II; Approval of a Budget Amendment in the General Fund; and Adopt a Resolution Continuing the Closure of a Portion of Ramona St. through 2025; CEQA Status – categorically exempt. 16. Approval of Contract C24191871 Amendment Number 1 Effective July 1, 2024 with Equinix, LLC in the Amount of $1,246,793 to Extend the Term for an Additional 2 Years Through June 30, 2029 for Fiber Licensing Agreement (Attachment A); and Authorization to Increase Contingency Amount by $75,000 for a Total Not to Exceed Amount of $1,954,923; CEQA Status – Not a Project 17. Approval of Purchase Order C24193066 with Origami Risk LLC for Records Management Software Supporting the City’s Claims and Litigation for a Three-Year Term Not-To- Exceed Amount of $206,310; CEQA: Not a project 18. Adoption of a revised salary schedule for Limited Hourly employees to increase the maximum hourly rate for the Management Specialist classification; CEQA Status - not a project 19. Adoption of a Resolution of Intention to Reimburse Expenditures for the Grid Modernization and Related Projects of the Electric Utility System Infrastructure from the Proceeds of Tax-Exempt Utility Revenue Bonds. SUMMARY MINUTES Page 12 of 18 City Council Meeting Summary Minutes: 12/16/2024 20. Accept the City of Palo Alto’s Audited Financial Statements as of June 30, 2024 and the Macias, Gini & O’Connell Management Letter; Approve the FY 2024 Annual Comprehensive Financial Report; and Amend the FY 2024 Budget in Various Funds, as Recommended by the Finance Committee; CEQA Status – Not a Project 21. Approval of Audit Reports and Task Orders: 1) ADA Compliance Audit and Recruitment & Succession Planning Audit; 2) Annual Risk Assessment and 2025 Audit Plan; 3) Task Order Execution for Remaining FY25 Tasks; and 4) Realignment of FY 2024 and FY 2025 Task Order Budgets with No Fiscal Impact as Reviewed by Policy & Services Committee; CEQA: Not A Project 22. FIRST READING: Adoption of a Temporary Ordinance Amending Section 18.42.110 (Wireless Communications Facilities) of Title 18 (Zoning) to Require Architectural Review Board Review for Tier 2 and Tier 3 Wireless Communications Facilities in the Public Rights-of-Way and Repeal the Objective Aesthetic, Noise, and Related Standards for Wireless Communication Facilities in the Public Rights-of-Way. CEQA Status: Exempt Pursuant to CEQA Guidelines Sections 15301, 15302, and 15303. 23. FIRST READING: Adoption of a Temporary Ordinance Amending Various Sections of Titles 18 (Zoning) and 21 (Subdivisions and Other Divisions of Land) to Implement Laws from the 2024 Legislative Session; Adoption of an Identical Emergency Ordinance; and Adoption of a Resolution Repealing SB 9 Objective Design Standards and Replacing Them with Single Family Objective Standards. CEQA Status – Exempt Pursuant to CEQA Guidelines 15061(b)(3). 24. REINTRODUCED FIRST READING: Adoption of an Ordinance Amending Palo Alto Municipal Code Title 18 (Zoning) and Title 21 (Subdivisions and Other Divisions of Land) to Clarify Existing Regulations and to Implement State Housing Laws Adopted in 2023 and Earlier. CEQA Status - Exempt Pursuant to CEQA Guidelines Section 15061(b)(3). (PREVIOUSLY INTRODUCED: November 12, 2024 PASSED 6-1, Kou no) 25. SECOND READING: Adoption of an Interim Ordinance Amending Chapters 18.04, 18.16, 18.30(A), and 18.30(C) of the Palo Alto Municipal Code to Implement High Priority Retail Revitalization Measures and Direction; Exempt Pursuant to CEQA Guidelines Section 15061(b)(3) (FIRST READING: November 18, 2024 PASSED 7-0) Public Comment Paul A. (Zoom) (Item 22), outside counsel for Verizon Wireless, requested that Item 22 be pulled. They did not think it was appropriate to discard the objective standards for small cells, which had been carefully designed by the ARB and Council in 2019. He suggested referring the item back to staff to work with stakeholders to improve the objective standards as necessary or to come up with some other kind of implementation. SUMMARY MINUTES Page 13 of 18 City Council Meeting Summary Minutes: 12/16/2024 Yvonne P. (Zoom) (Item 22) represented Verizon Wireless as a municipal engagement partner and asked that Item 22 be removed. The current objective standards were based on a collaborative effort between the City and the industry, and she requested that they be allowed to work with the City in amending the objective standards, which were necessary, rather than repealing or replacing them with subjective standards. She stated that adoption of the ordinance would conflict with the FCC standards, cause prolonged appeals to Council, drain on staff, and result in the City missing the shot clock deadlines. Vice Mayor Lauing, Councilmember Tanaka, and Lythcott-Haims requested to pull Agenda Item Number 24. Councilmember Tanaka, Lythcott-Haims, and Veenker requested to pull Agenda Item Number 22. Councilmember Tanaka registered a no vote on Agenda Item Numbers 10, 13, 16, 17, and 18. MOTION: Mayor Stone moved, seconded by Vice Mayor Lauing to approve Agenda Item Numbers 5-21, 23, 25 and to pull Agenda Item Numbers 22 and 24. MOTION PASSED ITEMS 5-9, 11, 12, 14, 15, 19-21, 23, 25: 7-0 MOTION PASSED ITEMS 10, 13, 16-18: 6-1, Tanaka no Councilmember Tanaka voiced that his issue with Item 10 was that the contracts were bundled together and the prior rates of the contracts were not included, so he did not know how much the rates had increased, and there had been no indication of the performance of the old contracts. He considered Item 13 to be an underperforming program, which he elaborated on. As for Item 6, he supported building dark fiber, but he thought the City was too late in building FTTP. Regarding Item 17, he noted there had not been competitive bidding and that the comparison to San Mateo was an old reference. He thought there should have been an RFP with more than one bid. Concerning Item 18, he did not support the revised salary schedule increasing by 48-percent. City Manager Comments City Manager Ed Shikada stated that Items 22 and 24 would be placed on an upcoming agenda, and he would let Council know the dates of such. He spoke of the Emergency Alert System test on December 12 and noted that there had been an excellent level of response. Information on the system itself and signing up was available at cityofpaloalto.org/alertsccfaq. He supplied a slide outlining the holiday hours at City facilities and of City programs. The Safe Streets Action Plan was open for public comment through February 14, and there would then be review by various commissions and Council in the spring. Information could be found at cityofpaloalto.org/safestreetsforall. The construction work at Churchill and Alma had been paused until January 6, and it was expected that the work would conclude by March. Information related to Uplift Local Holidays business support could be found at SUMMARY MINUTES Page 14 of 18 City Council Meeting Summary Minutes: 12/16/2024 upliftlocal.org/holidays. There would be a reorganization meeting on January 6 and a business meeting on January 13. A meeting was scheduled for January 21, and the Council retreat would be on January 25. Action Items 26. Policy and Services Committee Recommendation to Adopt a Policy to Reimburse Council Members Up to $2,000/year from the City Council Contingent Account for Technology Resources and Other Actual and Necessary Expenses Incurred in the Performance of Official Duties Deputy City Manager Chantal Cotton Gains noted that the recommendation passed out of the P&S Committee by a 2-1 vote. Assistant City Attorney Mark Vanni provided slides. He noted that Section 17 of the City Charter stated that compensation may be paid to councilmembers in amounts not to exceed those provided by State law, which put caps on councilmember salaries. With the relatively recent salary increase to councilmembers, a reimbursement policy could not be structured as a direct stipend. Government Code Section 5232.2 and 3 authorized reimbursement for actual and necessary expenses incurred in the performance of official duties and required a written policy setting out what would be reimbursable as well as documentary requirements, such as receipts. He outlined what would be reimbursable under the proposed policy, which was attached to the Staff Report. The total reimbursement would be capped at $2,000 per councilmember per year, and there would be no carry forward if not used in that year. All claims for reimbursement would need to be supported with documentation and submitted using the City’s official expense reports within 60 days of incurring the expense. The submitted documentation would be subject to the Public Records Act as well as to audit. Approved reimbursements would be processed within 30 days. He displayed a slide showing the recommendation. City Manager Ed Shikada added that an At-Places had been distributed for the March P&S Committee discussion, which provided a number of examples of similar types of reimbursement by other agencies. Councilmember Kou noted that assistants and interns had been discussed by P&S and needed further discussion. Public Comment Herb B. discussed this item being offered in lieu of a pay raise. He spoke of concerns with personal electronic devices being used and communications being available under the Public Records Act. He thought increasing salaries and adding on various expenses may affect votes for an upcoming bond measure. Vice Mayor Lauing wanted to know what had been evaluated to be either included or rejected in the list of covered expenses and why such was or was not included. He inquired if expenses SUMMARY MINUTES Page 15 of 18 City Council Meeting Summary Minutes: 12/16/2024 other than for assistants had been considered. He thought it was curious that printers, ink, and paper were not listed. Councilmember Kou noted that she had voted no on this item. She remarked that there was a clear reimbursement system and a procedure. She thought reimbursement for technology would be provided by submitting the expense if it fell within the categories accepted by the City. She commented that what had been reviewed dealt with technology. P&S had also mentioned Zoom accounts. She thought there should be a level of scrutiny but that it should not be a problem if submitted for reimbursement. She did not think expenses for anything other than assistants had been considered. Deputy City Manager Cotton Gains noted that the original referral from Council included things that Council could be reimbursed for, which was broad. Staff realized there were narrow categories in which hurdles would not be encountered. Technology expenses were very narrow and one staff knew they could offer. Assistant City Attorney Vanni thought printers, ink, and paper would be included in computer hardware. Vice Mayor Lauing thought printers, etc., being included in computer hardware should be specified. He questioned why the amount was $2,000. He thought the frequency of replacing devices should be included in the policy. He questioned what percentage of the price of a cell phone would be reimbursable. Deputy City Manager Cotton Gains replied that Council had set the $2,000 limit. Assistant City Attorney Vanni replied that a cell phone used exclusively for City business would be reimbursed 100 percent. A shared device would be reimbursed 25 percent, which would include the price of the device and the monthly expense of it. A new councilmember who had a preexisting device would be reimbursed for monthly expenses, not the device. Vice Mayor Lauing was concerned that councilmembers may have an incentive to purchase new devices at the City’s expense. He thought it should be specified how frequently an item could be purchased. He noted that the term tech tools and other was referenced in the Staff Report but the Council Memorandum addressed only tech tools and the other was not defined, and he thought the handbook needed some revisions. Assistant City Attorney Vanni responded that there was a provision in the policy for reimbursement of things that were not enumerated, and Council could approve the expenditure. Vice Mayor Lauing would send Assistant City Attorney Vanni something from the packet for a future discussion. He wanted expense reports to be done quarterly, not monthly. SUMMARY MINUTES Page 16 of 18 City Council Meeting Summary Minutes: 12/16/2024 Deputy City Manager Cotton Gains acknowledged that expense reports could be done quarterly. City Manager Shikada had found that doing expense reports monthly was better than doing them quarterly. Councilmember Burt was struggling with the City reimbursing for personal devices that would also be used for City business. He recalled that in the past the City provided councilmembers with tablets or computers. He asked if councilmembers could request a City electronic device, like Staff members had. Printing was an incremental cost, but he would not want to account for that and thought it was a diminishing return. In thinking about discernable expenses, he could not think of much beyond a Zoom account. He had no problem with compensating for a City- use Zoom account, but the rest of it he felt was a way to work around the state compensation limits and that it created complexity for no good reason. He supported compensation for real additional expenses. He was uncomfortable with the reasoning and intent behind it. City Manager Shikada thought the City offering tablets, etc., in the past may have been attempt to go paperless. City devices were not currently offered to councilmembers, but it was an alternative. Councilmember Veenker did not feel strongly about this. She stated she did not do this for the money. She liked the simplicity of the proposal. She voiced that there were incremental costs, be it devices, ink, etc., depending on how a councilmember conducted business. As long as it was modest, she thought it was appropriate. Councilmember Lythcott-Haims spoke of equity and the ability of various people being able to serve as a councilmember, so she was interested in the hourly wage, the stipend, and the reimbursement for expenses incurred on behalf of the City. She did not think 25 percent was enough. She thought half of her device usage was for City business. She did not believe anyone should be out of pocket for City work, particularly when the compensation was small. She did not want those in lower socioeconomic bands to have financial barriers to serving the City. She suggested piloting this and then deciding if it should be continued. Councilmember Kou stated that there would be a future discussion concerning increasing councilmember stipends, so whatever should be decided, the amount of money used needed to be put into perspective. She voiced that she had joined Council to serve the public. Councilmember Tanaka mentioned that he did not vote for higher salaries and he did not do this for the money. He did not expect people to spend personal funds for City business. He spoke of in the past being denied reimbursement for streaming his office hours, which was 100- percent City business. He thought the proposed policy made sense. He encouraged the use of technology. He felt the process should be simple and not political. Mayor Stone felt the nontechnology policy was vague and that it did not provide guidance. He asked what the process would be for requesting a nontechnology reimbursement and if SUMMARY MINUTES Page 17 of 18 City Council Meeting Summary Minutes: 12/16/2024 reimbursement for intern work was being considered. He noted that he would have purchased his cell phone and computer regardless of being on Council. He did not have a paid Zoom account, but with this policy, it might be something he would purchase. He thought expenses for the socioeconomically challenged should be considered. He did not have a strong preference either for or against the policy but was leaning toward adopting it. He thought the public records requests, etc., would keep councilmembers responsible. Assistant City Attorney Vanni answered that a process would need to be developed for reimbursement of something that was not technology, but it would probably follow a similar process that would be established for the technology purposes, meaning it would go to Administrative Services for review and then be put on an agenda for Council approval. It could go on consent. There may need to be proof why an expenditure was necessary. He noted that the process could be done in batches, such as once every six months. Reimbursement for intern work was not being considered and would need to be discussed separately from this policy. Vice Mayor Lauing spoke of the raise in 2025 being consistent with a new Senate bill and matched to a state law. He noted councilmembers had a variety of needs, which included technology, ink, etc. The equity issue noted by Councilmember Lythcott-Haims should be considered and included. MOTION: Councilmember Lythcott-Haims moved, seconded by Vice Mayor Lauing to adopt the attached policy authorizing Council Members to receive reimbursement, up to $2,000 per calendar year (taken from the City Council Contingent Account funding), for technology resources (limited to one of the same hardware items per four-year Council term) or other actual and necessary expenses incurred in the performance of official City duties. The policy includes procedures for documentation and audits. Deputy City Manager Cotton Gains thought something like printing would be included in the authorized expenses section, which referenced communication, but she wanted to make it clear that it would not include political materials not covered in a councilmember’s day-to-day role. MOTION PASSED: 6-1, Kou no 27. Approval of CAO Committee Recommendation to direct the City Manager, or their designee, and Council Appointed Officers Committee Chair Lauing to negotiate renewal of the contract with Baker Tilly US, LLC for Internal Audit Services through June 30 2026 with an option to renew for two years; and align the review of the City Auditor performance with other CAO reviews. Human Resources Director Sandra Blanch announced that City Auditor Kate Murdock and Baker Tilly Managing Director Chris Kalafatis was on the line to answer questions. The Baker Tilly contract term would end in June 2025. She outlined the options that had been considered by the CAO Committee, and the committee unanimously proposed that Council give direction to the City Manager or a designee and CAO Committee Chair Ed Lauing to renew and refine the SUMMARY MINUTES Page 18 of 18 City Council Meeting Summary Minutes: 12/16/2024 terms for a contract amendment with Baker Tilly. They recommended that the duration of the contract amendment be one year, ending June 30, 2026, and to negotiate an option to renew for two years and, in addition, align the City Auditor performance review with the other CAO evaluation process. Public Comment Herb B. discussed why he did not believe it was appropriate for the City Manager or a designee to be involved in negotiating a contract for the city auditor function. If the CAO Committee Chair needed assistance in negotiating the contract, he suggested that be done with a consultant. He thought any changes to the Auditor’s statement of economic interest should be made clear in any contract required to comply with the political reform act. He felt the CAO Committee goals and KPIs could be discussed in closed session but that they should be a reportable action provided in the agenda. MOTION: Council Member Burt moved, seconded by Council Member Kou to direct the Council Appointed Officers Committee Chair Lauing, with technical support from the Human Resources Director and appropriate City staff, to renew and refine the terms of a contract amendment with Baker Tilly US, LLC through June 30, 2026 plus negotiate terms for an option to renew for two years, and to align the review of the City Auditor performance with other CAO reviews. Councilmember Tanaka inquired how involved the City Manager would be in selecting the auditor. He did not think the City Manager should be part of it and that it should be just the CAO. Vice Mayor Lauing noted that the motion said the City Manager or their designee and the CAO Committee Chair. The auditor reported to Council. Councilmember Burt did not think the language actively reflected the respective roles. He understood that the HR Director would support on a technical level the tasks carried out by the CAO Committee Chair as opposed to them selecting the auditor collectively or in partnership. City Manager Ed Shikada thought Councilmember Burt’s comments were correct in terms of the technical role. Staff was to ensure that the form of the agreement would include all the standard provisions. He clarified that the resulting agreement would return to Council for approval. MOTION PASSED: 7-0 Mayor Stone appreciated and thanked the CAO Committee, staff, and colleagues who he was honored to work with. He thanked Councilmembers Tanaka and Kou for their service. He wished all happy holidays. Adjournment: The meeting was adjourned at 9:57 p.m.