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HomeMy WebLinkAbout2025-09-15 City Council Action MinutesCITY COUNCIL ACTION MINUTES Page 1 of 6 Regular Meeting September 15, 2025 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, Lauing, Lu, Lythcott-Haims, Reckdahl, Stone, Veenker Councilmember Stone arrived at 5:49 P.M. Present Remotely: Absent: Agenda Changes, Additions and Deletions Public Comment Council Member Questions, Comments and Announcements Study Session 1.414 California Avenue [25PLN-00140]. Request for Council Prescreening to Rezone the Subject Property from Community Commercial (2) (CC[2]) to Planned Community/Planned Home Zoning and to Allow Construction of a Mixed-Use Building with 37 Units in a Six-Story Structure on a 16,231-Square-Foot (0.37 Acre) Site. CEQA Status: Not a Project. NO ACTION Consent Calendar Councilmembers Reckdahl, Burt requested to pull Agenda Item Number 9. Docusign Envelope ID: C337C5F5-B54D-4B33-A41D-5A76290969F6 ACTION MINUTES Page 2 of 6 City Council Meeting Action Minutes: 09/15/2025 Councilmembers Reckdahl, Burt registered a no vote on Agenda Item Number 9. Vice Mayor Veenker recused from Agenda Item Number 9. MOTION: Councilmember Stone moved, seconded by Mayor Lauing to approve Agenda Item Numbers 2-9. MOTION PASSED ITEMS 2-8: 7-0 MOTION PASSED ITEM 9: 4-2-1, Burt, Reckdahl No, Veenker Recused 2.PUBLIC HEARING: Adoption of Voluntary Residential Electric Service Time-of-Use Rates (E-1 TOU) as Recommended by the Finance Committee; CEQA Status: Not a Project 3.Finance Committee Recommendation for City Council to Direct Staff to Follow the Reasonable-Cost Analysis Required by Proposition 26 for the Gas Cost of Service Analysis and Collaborate with the Utilities Advisory Commission to Develop Revised Gas Rate Schedules Effective January 2026, Based on Five Design Principles; CEQA – Not a Project 4.Authorization to Execute Amendment to Legal Services Agreement S25193131 with Diepenbrock Elkin Dauer McCandless to Increase Amount by $1,086,000 for Total Not- to-Exceed Amount of $1,171,000; CEQA Status – Not a Project. 5.Approval of Contract Amendment Number 1 to Contract C21177635B with Ingram Library Services in the amount of $255,000 for Print Materials and Services for a new not-to-exceed (NTE) of $455,000; and Contract Amendment Number 1 to Contract C21177635C with Midwest Tape in the amount of $53,000 for Media and Digital Materials and Services for a new not-to-exceed (NTE) of $753,000; CEQA Status – Not a Project. 6.Approval of 1) Amendment No. 8 to Contract No. C16163034A with Cumming Management Group, Inc. to Add $208,528, Increasing the Not-to-Exceed Amount to $10,683,771, for Additional Construction Management Services; 2) Professional Services Contract No. S26195542 with 4Leaf, Inc. in the Amount of $150,579 to Provide Inspector of Record Services; and 3) Amendment to the Fiscal Year 2026 Budget Appropriation for the Capital Improvement Fund to Support the New Public Safety Building Capital Improvement Program Project (PE-15001); CEQA Status - Environmental Impact Report for the New Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772) 7.Approval of the Third Amended and Restated Purchase Order Number 4521000199 with Altec Industries, Inc., to Increase the Purchase Order Amount by $365,983 to a New Not-to-Exceed Amount of $1,073,075, including a Contingency Amount of $51,099, for the Purchase of Two 2025 Peterbilt 548 Hydraulic Digger Derricks; and Amend the FY Docusign Envelope ID: C337C5F5-B54D-4B33-A41D-5A76290969F6 ACTION MINUTES Page 3 of 6 City Council Meeting Action Minutes: 09/15/2025 2026 Budget in the Vehicle Replacement and Maintenance Fund and the Electric Fund; CEQA Status – Exempt, Not a Project 8.FIRST READING: Adoption of Four Ordinances, as Recommended by the Retail Committee, to Amend and Reorganize Stormwater and Wastewater Management Requirements by Amending PAMC Chapter 16.09 (Sewer Use Ordinance), Amending Chapter 16.11 (Stormwater Pollution Prevention), Adding New Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease), and Adding New Chapter 16.66 (Hauled Liquid Waste); Adoption of Two Resolutions Establishing Regulations to Implement PAMC Chapters 16.11 and 16.13; Adoption of a Resolution Amending and Restating the Administrative Penalty Schedule and Civil Penalty Schedules for Certain Violations of the PAMC; CEQA Status – Exempt under CEQA Guidelines Section 15308 9.QUASI-JUDICIAL. 400 Mitchell Lane [25PLN-00006]: Recommendation From the Planning and Transportation Commission to Uphold the Director’s Decision to Approve a Conditional Use Permit Allowing a Private University Educational Use Within an Existing Building. CEQA Status: Exempt in accordance with CEQA Guidelines Section 15301 (Existing Facilities). Zone District: PF. City Manager Comments Ed Shikada, City Manager Action Items 10.Approval of a Director’s Interpretation Pursuant to PAMC Section 18.01.025 Concluding That Noncomplying Residential Gross Floor Area may not be Relocated Within a Structure; Denial of the Associated Appeal; Direction to Prepare a Future Code Amendment for Administrative De Minimis Exceptions to the Zoning Code; CEQA: Exempt Pursuant to CEQA Guidelines Section 15061(b)(3) ORGINAL MOTION: Councilmember Lu moved, seconded by Councilmember Burt to: 1.Do not uphold the Director of Planning and Development Services’ formal interpretation dated May 8, 2025, concluding that noncomplying residential gross floor area may not be removed and restored elsewhere on the property pursuant to Palo Alto Municipal Code (PAMC) Chapter 18.70, approving the associated appeal; and, 2.Direct staff to not to prepare a text amendment authorizing the Director of Planning and Development Services to consider or approve de minimis exceptions from noncomplying Docusign Envelope ID: C337C5F5-B54D-4B33-A41D-5A76290969F6 ACTION MINUTES Page 4 of 6 City Council Meeting Action Minutes: 09/15/2025 facility regulations and similar minor adjustments that are not impactful to adjacent properties or public realm for residential properties. COUNCILMEMBER BURT WITHDREW HIS SECOND TO THE ORGINAL MOTION MOTION: Councilmember Lu moved, seconded by Councilmember Burt to: 1.Do not uphold the Director of Planning and Development Services’ formal interpretation dated May 8, 2025, concluding that noncomplying residential gross floor area may not be removed and restored elsewhere on the property pursuant to Palo Alto Municipal Code (PAMC) Chapter 18.70, approving the associated appeal; and, 2.Direct staff to prepare a text amendment authorizing the Director of Planning and Development Services to consider or approve de minimis exceptions from noncomplying facility regulations and similar minor adjustments that are not impactful to adjacent properties or public realm for residential properties. MOTION FAILED: 3-4, Lauing, Stone, Veenker, Reckdahl no MOTION: Mayor Lauing moved, seconded by Vice Mayor Veenker to 1.Uphold the Director of Planning and Development Services’ formal interpretation dated May 8, 2025, concluding that noncomplying residential gross floor area may not be removed and restored elsewhere on the property pursuant to Palo Alto Municipal Code (PAMC) Chapter 18.70, denying the associated appeal; and, 2.Direct staff to prepare a text amendment within 6-months authorizing the Director of Planning and Development Services to consider or approve de minimis exceptions from noncomplying facility regulations and similar minor adjustments that are not impactful to adjacent properties or public realm for residential properties. AMENDMENTS INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER MOTION PASSED: 6-0-1, Lu abstained 11.Approval of a Third Phase Agreement with Northern California Power Agency for the Purchase of Battery Energy Storage Capacity from Trolley Pass Project LLC, over a Term of up to 20 Years for a Total Not to Exceed Amount of $161.7 Million; CEQA status: not a project under CEQA Guidelines sections 15378(a), (b)(5) Docusign Envelope ID: C337C5F5-B54D-4B33-A41D-5A76290969F6 ACTION MINUTES Page 5 of 6 City Council Meeting Action Minutes: 09/15/2025 MOTION: Vice Mayor Veenker moved, seconded by Councilmember Burt to: 1.Authorize the City Manager, or their designee, to execute a Third Phase Agreement (Attachment A) with the Northern California Power Agency (NCPA) to purchase the output of a 50-megawatt (MW) share of a grid-connected battery energy storage system (BESS) owned by Trolley Pass Project LLC, a subsidiary of Aypa Power Development (Aypa), over a period of 20 years, at a total cost not to exceed $161.7 million; 2.Authorize the City Manager, or their designee, to execute on behalf of the City all related documents or agreements necessary to administer the Third Phase Agreement that are consistent with the Palo Alto Municipal Code and City Council-approved policies, including, but not limited to, collateral assignment agreements; and take any and all actions as are necessary or advisable to implement and administer the Third Phase Agreement; and, 3.Authorize the City Manager, or their designee, to approve and execute amendments to the Third Phase Agreement, as may be required from time to time, so long as the contract price and length of the agreement remain unchanged. MOTION PASSED: 7-0 12.Designation of Voting Delegate and Alternate for the League of California Cities Annual 2025 Conference, to be held October 8-10, 2025, in Long Beach, California MOTION: Mayor Lauing moved, seconded by Councilmember Lythcott-Haims to designate Vice Mayor Veenker as the voting delegate for the 2025 League of California Cities Annual Conference. MOTION PASSED: 7-0 Adjournment: The meeting was adjourned at 9:49 P.M. Docusign Envelope ID: C337C5F5-B54D-4B33-A41D-5A76290969F6 ACTION MINUTES Page 6 of 6 City Council Meeting Action Minutes: 09/15/2025 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. Docusign Envelope ID: C337C5F5-B54D-4B33-A41D-5A76290969F6 Certificate Of Completion Envelope Id: C337C5F5-B54D-4B33-A41D-5A76290969F6 Status: Completed Subject: September 15, 2025 Action Minutes Source Envelope: Document Pages: 6 Signatures: 2 Envelope Originator: Certificate Pages: 2 Initials: 0 Christine Prior AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Christine.Prior@PaloAlto.gov IP Address: 165.225.242.87 Record Tracking Status: Original 10/2/2025 7:35:40 AM Holder: Christine Prior Christine.Prior@PaloAlto.gov Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: Docusign Signer Events Signature Timestamp Ed Lauing Ed.Lauing@paloalto.gov Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 38.246.33.19 Sent: 10/2/2025 7:36:48 AM Viewed: 10/9/2025 8:14:01 AM Signed: 10/9/2025 8:15:10 AM Electronic Record and Signature Disclosure: Not Offered via Docusign Mahealani Ah Yun Mahealani.AhYun@paloalto.gov City Clerk Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 10/9/2025 8:15:12 AM Viewed: 10/13/2025 1:33:10 PM Signed: 10/17/2025 9:37:34 AM Electronic Record and Signature Disclosure: Not Offered via Docusign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 10/2/2025 7:36:48 AM Envelope Summary Events Status Timestamps Certified Delivered Security Checked 10/13/2025 1:33:10 PM Signing Complete Security Checked 10/17/2025 9:37:34 AM Completed Security Checked 10/17/2025 9:37:34 AM Payment Events Status Timestamps