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HomeMy WebLinkAbout2025-02-10 City Council Agenda PacketCITY COUNCIL and PUBLIC IMPROVEMENT CORPORATION Special Meeting CITY OF Monday, February 10, 2025 PALO Council Chambers & Hybrid ALTO 5:30 PM Palo Alto City Council meetings will be held as "hybrid" meetings with the option to attend by teleconference or in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone: 1(669)900-6833 PUBLIC COMMENTS General Public Comment for items not on the agenda will be accepted in person for up to three minutes or an amount of time determined by the Chair. General public comment will be heard for 30 minutes. Additional public comments, if any, will be heard at the end of the agenda. Public comments for agendized items will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. Requests to speak will be taken until 5 minutes after the staff's presentation or as determined by the Chair. Written public comments can be submitted in advance to city.council@CityofPaloAlto.org and will be provided to the Council and available for inspection on the City's website. Please clearly indicate which agenda item you are referencing in your subject line. PowerPoints, videos, or other media to be presented during public comment are accepted only by email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received, the Clerk will have them shared at public comment for the specified item. To uphold strong cybersecurity management practices, USB's or other physical electronic storage devices are not accepted. Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks, posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do not create a facility, fire, or safety hazard; and (3) persons with such items remain seated when displaying them and must not raise the items above shoulder level, obstruct the view or passage of other attendees, or otherwise disturb the business of the meeting. TIME ESTIMATES Listed times are estimates only and are subiect to change at any time. including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. February 10, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CALL TO ORDER SPECIAL ORDERS OF THE DAY (5:30 - 5:50 PM) Santa Clara County 2024 Synopsys Championship Science Fair STEM Winners from Palo Alto 2. Appointment of Candidates to the Planning and Transportation Commission AGENDA CHANGES, ADDITIONS AND DELETIONS PUBLIC COMMENT (5:50 - 6:20 PM) Members of the public may speak in -person ONLY to any item NOT on the agenda. 1-3 minutes depending on number of speakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda. COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:20 - 6:25 PM) Members of the public may not speak to the item(s). STUDY SESSION (6:25 - 7:55 PM 3. Housing and Homelessness in Palo Alto: Review of current efforts including the 2024 Gap Analysis Report, Update on Enforcement Work, Overview of Engagement Framework to Develop an Implementation Plan, and Discussion of Other Potential Next Steps CONSENT CALENDAR (7:55 - 8:00 PM) Items will be voted in one motion unless removed from the calendar by three Council Members. 4. Approval of Minutes from January 21, 2025 and January 25, 2025 Meetings 5. Approval of Contract Amendment Number 2 to Contract Number S24189598 with Good City Company in the Amount of $24,930 for a Stream Corridor Protection Ordinance Update; CEQA Status: Exempt Pursuant to CEQA Guidelines 15061(b)(3). 6. Approval of Contract Amendment Number Three to Contract Number C21177024 With Veolia Sustainable Buildings USA West, Inc. to Extend the Contract Time Through August 14, 2026 With No Change in the Amount Not -to -Exceed of $1,985,000 for the Commercial & Industrial Energy Efficiency Program. CEQA - Not a Project 7. Approval of Amendment Number Three (3) to Contract Number C19174648 with WaterSmart Software, Inc. (dba WaterSmart) for the WaterSmart Utilities Customer Portal, to Extend the Contract Term for 18 Months, for the Total Not -to -Exceed Amount of February 10, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. $537,763 Over the Seven -Year Term; CEQA status —Exempt under CEQA Guidelines Section 15308. 8. Adoption of a Resolution Authorizing the City Manager to Approve the Verified Emission Reduction (VER) Master Agreements with AQC Environmental Brokerage Services, Inc. and SCB Brokers, LLC and Authorizing the City Manager to Purchase VERs from AQC Environmental Brokerage Services, Inc. and SCB Brokers, LLC Under Specified Terms and Conditions During Calendar Years 2025 Through 2034, Inclusive, Subject to Limitations; CEQA Status: Not a Project, CEQA Guidelines 15378(b)(5) 9. Approval of Professional Services Contract Number C25189597 with Rutherford & Chekene in an Amount Not to Exceed $207,812 for Development of a Seismic Hazard Identification and Mitigation Program for a Period of Three Years. CEQA Status: Exempt under CEQA Guidelines 15262. 10. Approval of Two Professional Service Agreements: Contract No. C25190944A with 4Leaf, Inc. and Contract No. C25190944B with Park Engineering, Inc in the Aggregate Amount Not -to -Exceed $3.75 Million for a Period of Five Years for On -Call Field Inspections and Construction Management Services to Support Utilities Water, Gas, and Wastewater Capital Improvement Projects; CEQA Status: Not a project. 11. Adoption of a Resolution Amending the Conflict of Interest Code for Designated City Officers and Employees as Required by the Political Reform Act and Regulations of the Fair Political Practices Commission and Repealing Resolution Number 9937. CEQA Status -- Not a Project 12. SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Various Chapters of Title 18 (Zoning) of the Palo Alto Municipal Code to Implement the 2023- 2031 Housing Element (FIRST READING: January 21, 2025 PASSED 7-0) CITY MANAGER COMMENTS (8:00 - 8:15 PM) RECESS CITY COUNCIL MEETING AND CONVENE PUBLIC IMPROVEMENT CORPORATION MEETING ACTION ITEMS (Item 13: 8:15 - 8:30 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 13. Approval of the FY 2024 Public Improvement Corporation's Annual Financial Report; CEQA Status: Not a Project BREAK (15 MINUTES) February 10, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. RECONVENE CITY COUNCIL MEETING ACTION ITEMS (Item 14: 8:45 - 9:00 PM, Item 15: 9:00 - 10:30 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 14. PUBLIC HEARING: Objections to Weed Abatement at Affected Properties and Approval of Affected Property List for Commencing Weed Abatement in 2025; CEQA status - exempt 15. PUBLIC HEARING / QUASI-JUDICIAL. 3265 El Camino Real [24PLN-00012]: Approval of an Ordinance Rezoning the Subject Parcel From Commercial Services (CS) to Planned Community Zoning (PC) and Adoption of a Record of Land Use Action to Construct a 100% Affordable, Five -Story, 55 Unit Residential Rental Project. Environmental Assessment: Initial Study/15183 Streamlined CEQA Review. ADJOURNMENT INFORMATION REPORTS Information reports are provided for informational purposes only to the Council and the public but are not listed for action during this meeting's agenda. 16. Semi -Annual Report of Contracts Awarded by the City Manager, Procurement Officer or Other Designated Employees for the period of July 1, 2024 through December 31,2024 ;CEQA Status- Not a Project. 17. Palo Alto Local Hazard Mitigation Plan Annual Update for Calendar Year 2024; CEQA Status: Not a Project 18. Information Item: Summary of Fiscal Year 2023-2024 Community Development Block Grant (CDBG) Program Accomplishments — Review of the CDBG Consolidated Annual Performance and Evaluation Report (CAPER). CEQA Status — Not a Project. 19. Key Findings of the 2024 Human Services Needs Assessment; CEQA Status - Not a Project OTHER INFORMATION Standing Committee Meetings this week Policy & Services Committee February 11, 2025 February 10, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. Public Comment Letters Schedule of Meetings February 10, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments for agendized items using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom -based meeting. Please read the following instructions carefully. o You may download the Zoom client or connect to the meeting in- browser. If using your browser, make sure you are using a current, up-to-date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. o You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. o When you wish to speak on an Agenda Item, click on "raise hand." The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. o When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 4. Spoken public comments for agendized items using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN Meeting ID: 362-027-238 Phone: 1-669-900-6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City's ADA Coordinator at (650) 329-2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. February 10, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. California Government Code §84308, commonly referred to as the "Levine Act," prohibits an elected official of a local government agency from participating in a proceeding involving a license, permit, or other entitlement for use if the official received a campaign contribution exceeding $500 from a party or participant, including their agents, to the proceeding within the last 12 months. A "license, permit, or other entitlement for use" includes most land use and planning approvals and the approval of contracts that are not subject to lowest responsible bid procedures and have a value over $50,000. A "party" is a person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use. A "participant" is a person who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the definition of "financial interest" in the Political Reform Act, which encompasses interests in business entities, real property, sources of income, sources of gifts, and personal finances that may be affected by the Council's actions. If you qualify as a "party" or "participant" to a proceeding, and you have made a campaign contribution to a Council Member exceeding $500 made within the last 12 months, you must disclose the campaign contribution before making your comments. February 10, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. ITEM 1 City Council Staff Report Report Type: SPECIAL ORDERS OF THE DAY CITY O F Lead Department: City Clerk PALO A LTO Meeting Date: February 10, 2025 Report #:2412-3857 TITLE Santa Clara County 2024 Synopsys Championship Science Fair STEM Winners from Palo Alto BACKGROUND The Santa Clara Valley Science and Engineering Fair Association is asking the Mayor and City Council to recognize the 2024 Synopsys Championship Science Fair STEM Winners from Palo Alto. The 2024 awardees are: • Avery Amsili • Charlene Yifan Li • Ivy Ruth Alcheck • Athary Mahajan • Aditya Banwasi • Maya Mazin • Maya Caren • Adrit Rao • Edward Chen • Claire Rao • Connor Chin • Eden Alivia Ross • Jacob Chiu • Hongyi Shi • Arlo Cohen • Stella Su • Adrina Esmaeilpour • Lucas Wu • Carina Gross • Vince Wu • Ethan Kou • Danielle Zomet • Lauren Jungmin Lee ATTACHMENTS Attachment A: Certificates of Recognition APPROVED BY: Mahealani Ah Yun, City Clerk Item 1 Page 1 Packet Page 8 of 582 ITEM 1 Attachment A ON ti J •1 LL 1 o L �.o ITEM 1 Attachment A •L N ^ V � ti � � o o � � o � o ITEM 1 Attachment A •L N ^ V � � o o � � o � o 0 ITEM 1 Attachment A •L N ^ V � � o o � � o 0 Is t r ti ITEM 1 Attachment A •L N ^ V � � o o � � o � o Is t r ti ITEM 1 Attachment A •L N ^ V � � o o � � o � o Is t r ti ITEM 1 Attachment A •L N ^ V � � o o � � o � o Is t r ti ITEM 1 Attachment A •L Is t r ti � � o o � � o � o Item 1 Page 9 ITEM 1 Attachment A •L N ^ V � � o o � � o � o Is t r ti ITEM 1 Attachment A •L � � o o � � o � o Is t r ti ITEM 1 Attachment A •L N ^ V � � o o � � o � o Is t r ti ITEM 1 Attachment A •L N ^ V � � o o � � o � o 0 ITEM 1 Attachment A •L N ^ V t r ti � � o o � � o -' . ITEM 1 Attachment A •L N ^ V � � o o � � o -' . � o ITEM 1 Attachment A •L � � o o � � o � o Is t r ti ITEM 1 Attachment A •L N ^ V � � o o � � o � o 0 Is t r ti ITEM 1 Attachment A •L N ^ V � � o o � � o � o Is t r ti ITEM 1 Attachment A •L N ^ V � � o o � � o � o ITEM 1 Attachment A •L N ^ V Is t r ti � � o o � � o � o ITEM 1 Attachment A •L N ^ V � � o o � � o � o Is t r ti ITEM 1 Attachment A •L N ^ V � � o o � � o � o Is t r ti ITEM 1 Attachment A •L � � o o � � o � o Is t r ti ITEM 1 Attachment A •L N ^ V ' LC � � o o � � o -' . � o 0 ITEM 2 City Council Staff Report From: City Clerk CITY O F Report Type: SPECIAL ORDERS OF THE DAY PALO ALTO Meeting Date: February 10, 2025 Report #:2411-3834 TITLE Appointment of Candidates to the Planning and Transportation Commission RECOMMENDATION Staff recommends City Council vote to appoint one candidate to fill the partial term expiring on March 31, 2026, and two candidates to fill the full terms expiring on March 31, 2029, to the Planning and Transportation Commission (PTC). A majority vote (4 yes's) is required to appoint a candidate. BACKGROUND Then-PTC Commissioners Keith Reckdahl and George Lu were sworn in as City Councilmembers on January 6, 2025, thereby vacating their PTC seats. Keith Reckdahl was in PTC Seat 4, whose term expires 3/31/26. Staff recruited for 1 partial term to fill this vacancy. George Lu was in PTC Seat 5, whose term expires 3/31/25. Due to the closeness of the expiration date, we recruited for a full term for Seat 5. The City Council may choose to appoint a commissioner to finish out the current Seat 5 term and then serve the subsequent full term or leave Seat 5 vacant until 4/1/25, when the new commissioner would begin. Additionally, PTC Seat 6's term, which is currently occupied by Commissioner Doria Summa, will expire on 3/31/25. The newly appointed commissioner will begin service upon that term's expiration. Seat Number* Term Length Service Begins Term Expiration Seat 4 Partial Upon appointment March 31, 2026 Seat 5 Full Upon appointment or April 1, 2025, at Council's discretion March 31, 2029 Seat 6 Full April 1, 2025 March 31, 2029 *Seat numbers have been implemented for tracking purposes. Item 2 Page 1 Packet Page 32 of 582 ITEM 2 On the January 21, 2025 City Council meeting, City Council selected thirteen candidates who received at least one vote for interviews. Initially scheduled for February 3, 2025, the interviews were rescheduled to a Special Meeting on February 4, 2025. MEMBERSHIP REQUIREMENTS According to Palo Alto Municipal Code1, members of the PTC must be residents of the City who are not council members, officers or employees of the city. FISCAL/RESOURCE IMPACT There is no Fiscal/Resource Impact. ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by CEQA because it an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. CEQA Guidelines section 15378(b)(5). ATTACHMENTS Attachment A: Selected PTC Candidates' Applications - Redacted APPROVED BY: Mahealani Ah Yun, City Clerk 1 Palo Alto Municipal Code 2.02.010 https://codelibrary.amlegaI.com/codes/paloalto/latest/paloalto ca/0-0-0- 61282 Item 2 Page 2 Packet Page 33 of 582 ITEM 2 Attachment A Submitted on Receipt number Related form version Personal Information Name Cell Phone Number Home Phone Number Email Address Are you a Palo Alto resident? Address 13 January 2025, 9:04am 63 15 Forest Peterson Yes City Palo Alto Postal Code 94306 Do you have any relatives or members of your household who No are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? Are you available and committed to complete the term applied Yes for? Fair Political Practices No California state law requires board/commission members to file a disclosure of financial interests (Fair Political Practices Commission, Conflict of Interest, Form 700). Do you/your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1. Engage in business with the City; 2. Provide products or services for City projects; or 3. Be affected by decisions of this Board or Commission? Excluding your principal residence, do you or your spouse No own real property in Palo Alto? How did you learn about the vacancy on the Planning and Community Group Item 2 Page 3 Packet Page 34 of 5821 of 4 Transportation Commission? ITEM 2 Attachment A I Consent to Publish Personal Information on the City of Palo Alto Website Read the code, and check only ONE option below: I Personal and Job Experience Occupation Please list your relevant education, training, experience, certificates of training, licenses, and professional registration If describing work experience, please include company/employer name and occupation. Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held. I Application Questions I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. Engineer At Palo Alto Data Group, I lead products in Al -based labor standards enforcement. I keep my foot in academics at CIFE, mentoring new generations of doctorates. Evenings, I am a community college professor. Before my career in heavy construction, which started with a shovel, I had a humble beginning, building hundreds of homes -- culminating in my own home in the Sierras. My doctorate is a joint degree from Stanford Engineering and Doerr School of Sustainability. I transferred from the UNR grad program in Economics. I served a year of public service as the first investigator in the County's Division of Equity and Social Justice, where I led COVID compliance. The doctorate requires an industry component, which I completed in software at Cadwork Informatik in Basel and Rhumbix in San Fransisco. Pre -academic, I was a design -build engineer on Reno's rail corridor. I paid for my education by shoveling concrete. See my professional and educational history linkedin.corrdin/forest- peterson During COVID-19, I co -lead 501c3 Step Forward's outreach project -- encouraging the workforce to report concerns through a social media network. I care about environmental sustainability: the Camp Fire destroyed my home and community and took the lives of my neighbors. My three kids are enrolled in public schools: Greene and Paly. I participate in council and board meetings across the County through community groups: 2021-25 Chair, Valley Water, bond flood protection subcommittee 2021-25 Chair, National Academy Transportation Research Board, Al subcommittee 2021-25 President, SV Working Blue Dem Club 2020-25 Director, SCC Construction Careers Association 501c3 My grandmothers were feminists, which I honor by supporting women at the League of Women Voters and through Parents in Academia. I mentored Dr. Montoya's thesis in feminism at UC Irvine, "Promoting Equitable Pathways in Engineering and Career Technical Education." See my volunteering history linkedin.com/in/forest-peterson 1. For which vacancy are you applying (check all that apply)? Partial term, Expiring 3/31/2026 Item 2 Page 4 Packet Page 35 of 5822 of 4 Full term, Expiring 3/31/2029 Attachment A 2. Why are you interested in serving on the Planning & My perspective is common to Palo Alto, though underrepresented on the Transportation Commission and what experience would you PTC. I am a father of three, an apartment resident with a blue-collar bring to the position? background, and a daily patron of public transportation. For the past decade, I've walked forty-five minutes to my lab at Stanford, and daily, my family relies on a network of walkways, rail, bus, air, and ride -share. We made the leap and never looked back! For thirty years, I've worked in the built environment. For the past few years, I've volunteered with policy -focused groups. My expertise is in information models, which will become a focus in regional planning with Al -based visualizations in a range of 'what if scenarios. My three policy visions: (1) Work with staff and the Commission on acceptable compromises. (2) Define development agreements that include data -driven community impact mitigations. (3) Advocate for public transit networks linked to affordable housing similar to the excellent example of the teacher housing at 231 Grant. 3. Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting, you can view archived videos from the Midpen Media Center. Archived video meetings are available from the Midpen Media Center. 4. If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and how would you help in the process? 5. Planning and Transportation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. Palo Alto 2030 Comprehensive Plan (20171 Zoning Code City Charter A riparian information model! I agree with the Commission's return of the 10/24 proposed 18.4.140 stream corridor. The current design flooded in 19 and '22. The proposal incorporates the '07 water collab guideline. However, a complexity issue is at play: 2,600 scenarios given 3 segments, 3 types of channels, ..., etc. What remains unknown? After 4 hours, the Commission moved to postpone to an unknown date. Adjacent land planning is unknown. On 10/23 at the County, I commented on bioswales to limit runoff in the Stanford Community Plan (see Land Ch6). I did the same in the aborted '19 GUP. Two of 3 creeks drain Stanford lands deforested by a history of grazing. The design cfm of runoff is key to know. An info model visual of the complexity could highlight those 200 likely problem lots of 6,600, which Reckdahl (1:59:55), Summa (2:27:00), and to some degree, Hechtman (2:39:00) asked for an informational visual. Also, our rail corridor would be my third (Reno 2004 and High-speed 2011). If appointed, specific goals: First, I would continue with the commission's focus on reducing staff time demand by limiting ad -hoc follow-ups and setting clear priorities. Second, we should increase the use of technology, particularly in the case of significant developments. I chair a DigitalTwin subgroup (information model and artificial intelligence) at the National Academy's Transportation Research Board. That method of modeling as part of planning is not often used -- at best, I see renderings of buildings at the meetings. I bring that focus to the Water District, where it has been understandably a process as the capability develops. Third, my priority is a compromise between short-term livability and long- term sustainability regarding environmental and social objectives. The California Environmental Quality Act is professionally where I have a working knowledge regarding large public works projects. During the Stanford General Use Permit (GUP), I successfully co -led a community organization in what was at that time the controversial inclusion of community impacts mitigations in the CEQA public discussion -- also at that time, acquiring a familiarity with the County General Plan. Item 2 Page 5 Packet Page 36 of 5823 of 4 California Environmental Quality Act El Camino Real Design Guidelines El Camino Real Master Plan Study(2007) Area Plans such as the South of Forest Avenue (SOFA) 1 (2000) and 11 (2003) Plans Baylands Master Plan (2008) If you'd like to provide any additional documents, please upload below. ITEM 2 Attachment A In my role chairing the Water District bond flood control subcommittee, I am familiar with the Baylands Plan within the San Franscrito Creek JPA. During this application, I read through the CA Title 18 public revenue and the PA City Municipal Code. Regarding the Comprehensive and El Camino Corridor plans, I have a non-specific experience with similar corridor documents throughout my thirty years in the built environment professions: some of which I have taught at Stanford, and others I worked extensively with professionally. Please confirm that you have read the Boards and Yes Commissions Handbook. View the Boards and Commissions Handbook. Signature Name of signatory: Forest Olaf Peterson, PhD Link to signature Date Completed 01/13/2025 Item 2 Page 6 Packet Page 37 of 5824 of 4 Submitted on Receipt number Related form version I Personal information ITEM 2 Attachment A 15 January 2025, 3:37pm 58 15 Name Daniel Hekier Cell Phone Number Home Phone Number Email Address Are you a Palo Alto resident? Yes Address City Palo Alto Postal Code 94306 Do you have any relatives or members of your household who No are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? Are you available and committed to complete the term applied Yes for? Fair Political Practices No California state law requires board/commission members to file a disclosure of financial interests (Fair Political Practices Commission, Conflict of Interest, Form 700). Do you/your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1. Engage in business with the City; 2. Provide products or services for City projects; or 3. Be affected by decisions of this Board or Commission? Excluding your principal residence, do you or your spouse own real property in Palo Alto? How did you learn about the vacancy on the Planning and No Community Group Item 2 Page 7 Packet Page 38 of 5821 of 3 Transportation Commission? ITEM 2 Attachment A I Consent to Publish Personal Information on the City of Palo Alto Website Read the code, and check only ONE option below: I Personal and Job Experience Occupation Please list your relevant education, training, experience, certificates of training, licenses, and professional registration. If describing work experience, please include company/employer name and occupation. I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. Attorney I currently work as corporate counsel at Google. In that role, my day to day responsibilities involve collaborating with stakeholders (internal and external) and taking into account existing company policies towards achieving a desired outcome. While the subject matter differs from that which comes before PTC, this experience should translate to the process of reviewing matters that do come before the PTC and in working with staff, the other commissioners, and taking into account stakeholder concerns towards issuing a recommendation to Council. Please describe your involvement in community activities, After moving to Palo Alto in September 2018, I quickly became involved volunteer and civic organizations, including dates and any in volunteering at my local synagogue (Congregation Emek Beracha) by offices held. joining the board. I served as president of the board for three years from June 2020 to June 2023, through the Covid lockdown, reopening, and a broader re -engagement of the community. I've continued serving on the board as a director in a past president role, and am now seeking a public/community service opportunity to serve a broader constituency. I Application Questions 1. For which vacancy are you applying (check all that apply)? Partial term, Expiring 3/31/2026 2. Why are you interested in serving on the Planning & Transportation Commission and what experience would you bring to the position? 3. Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting, you can view archived videos from the Midpen Media Center. Archived video meetings are available from the Midpen Media Center. Full term, Expiring 3/31/2029 When I moved to Palo Alto in 2018 with my family, we immediately fell in love with the community. Having access to playgrounds, parks, and bike trails transformed our experience as a family. I am interested to serve on the Commission in order to support the city's pursuit of fulfilling it's housing development goals while maintaining the best of the city's character. I would bring my professional experience of working with a variety of stakeholders towards an optimal outcome, and my community service orientation from having served on the synagogue board. I've been interested by the Commission's work on retail rejuvenation over several meetings, beginning with the retail study introduced at the PTC meeting on October 25, 2023, continuing with the establishment of the Ad Hoc committee and the full Commission's review of the retail study, and concluding with recommendations to Council to amend code impacting retail uses in the city at the August 14, 2024, meeting. I was interested to see the Commission's recommendations to Council addressing a broad range of matters such as parking, types of retail, and standardizing CUP approval criteria. This area is of interest because of the role that retail plays in fostering community by attracting the participation of local residents. I was also interested by the Commission's discussion acknowledging the challenges that retail has faced in Palo Alto, and deliberation of how revisions to code would impact the viability of retail rejuvenation. Item 2 Page 8 Packet Page 39 of 5822 of 3 ITEM 2 Attachment A 4. If appointed, what specific goals would you like to see the I would like to join the Commission to support it in advising Council as to Planning and Transportation Commission achieve, and how the matters where the Commission's recommendation is sought, would you help in the process? particularly: (1) Successful implementation of the Housing Element to meet the City's objective by 2031; (2) Continued development and enhancement of safe bike and pedestrian paths; and (3) Retail revitalization. I would be excited to contribute to this process by balancing stakeholder concerns along with the city's commitments under the Housing Element to ensure Palo Alto continues to thrive. 5. Planning and Transportation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. Palo Alto 2030 Comprehensive Plan (2017) Zoning Code City Charter California Environmental Quality Act Area Plans such as the South of Forest Avenue (SOFA) 1 (2000) and 11 (2003) Plans Baylands Master Plan (2008) If you'd like to provide any additional documents, please upload below. I'm becoming familiar with these documents in preparing to serve on the commission, and am studying them on an ongoing basis. Please confirm that you have read the Boards and Yes Commissions Handbook. View the Boards and Commissions Handbook. Signature Name of signatory: Daniel Hekier Date Completed 01/15/2025 Item 2 Page 9 Packet Page 40 of 5823 of 3 Submitted on Receipt number Related form version I Personal information ITEM 2 Attachment A 13 January 2025, 12:58pm 72 15 Name William Glazier Cell Phone Number Home Phone Number Email Address Are you a Palo Alto resident? Yes Address City Palo Alto Postal Code 94301 Do you have any relatives or members of your household who No are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? Are you available and committed to complete the term applied Yes for? Fair Political Practices No California state law requires board/commission members to file a disclosure of financial interests (Fair Political Practices Commission, Conflict of Interest, Form 700). Do you/your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1. Engage in business with the City; 2. Provide products or services for City projects; or 3. Be affected by decisions of this Board or Commission? Excluding your principal residence, do you or your spouse own real property in Palo Alto? How did you learn about the vacancy on the Planning and No Other: Email from current PTC Member Item 2 Page 10 Packet Page 41 of 5821 of 4 Transportation Commission? ITEM 2 Attachment A I Consent to Publish Personal Information on the City of Palo Alto Website Read the code, and check only ONE option below: I Personal and Job Experience Occupation Please list your relevant education, training, experience, certificates of training, licenses, and professional registration. If describing work experience, please include company/employer name and occupation. Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held. I Application Questions 1. For which vacancy are you applying (check all that apply)? I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. Retired Harvard AB, Stanford MBA Bain and Company 1985-90 Silicon Graphics 1990-95 Variety of Internet and technology startups in marketing and business development roles (Placeware (sold to Microsoft), Eloquent (IPO), Virident (sold to Western Digital) - 1995-2005 Venture Capital, Venture Partner, Redwood Ventures 2005-2011 Founder and Executive Director, Team NorCal Lacrosse 2011-2024 Resident of Palo Alto for 38 years Member of Palo Alto Planning Commission 1990-95 President, Tomahawks Youth Lacrosse 501c3 2006-2025 Katherine and I made a decision when we were married to move to the West Coast and Palo Alto and raise our kids here and attend the public school system. We were very fortunate we were able to buy a house and become a part of an incredible community of people. We were thrilled our kids got to grow up here. She was very active leading many community organizations - Garden Club, Walter Hays PTA, Gamble Garden Center. Later in life, I founded a youth sports company - TeamNorCal Lacrosse - that touches over 2,000 kids yearly and worked with over a dozen public and private high schools up and down the Peninsula (including Paly and Gunn) to add the sport at the Varsity level. Partial term, Expiring 3/31/2026 Full term, Expiring 3/31/2029 2. Why are you interested in serving on the Planning & Retirement opens up new vistas for us all. My professional life was a Transportation Commission and what experience would you series of roles working with extraordinary people on challenging issues. I bring to the position? have the time and interest once again now to devote to the PTC. My relevant experience: A) Experience as a Planning Commissioner - Experience hopefully brings wisdom. I hopefully learned from some great people I worked with at that time. B) Knowledge of the City and Understanding of the Needs of Residents - I have watched the City grow from 'a nice bedroom community for Stanford' to 'the epicenter of the Internet'. I have seen the good and the bad of this growth. C) Willingness and Ability to Serve - I have no further political aspirations, and am not looking to run for City Council or Congress in two years. I merely want to work with smart people addressing important Item 2 Page 11 Packet Page 42 of 5822 of 4 ITEM 2 issues about a place that I love and want to see impr ,iGmPi@At�of time and can commit to the personal investment necessary to be effective in the role. 3. Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting, you can view archived videos from the Midpen Media Center. Archived video meetings are available from the Midpen Media Center. 4. If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and how would you help in the process? 5. Planning and Transportation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection Palo Alto 2030 Comprehensive Plan (2017) Zoning Code City Charter California Environmental Quality Act Area Plans such as the South of Forest Avenue (SOFA) 1 (2000) and 11 (2003) Plans Baylands Master Plan (2008) If you'd like to provide any additional documents, please upload below. I have been to many PTC meetings over the years, and have followed issues of interest online and vis newspapers for nearly 40 years. Recently, the 70 Encina housing proposal contains a number of issues that are likely to continue to face the City and the PTC. More housing in an area (the old Urban Lane, now PAMF, Opportunity Center, Transportation Center and more) which is a very attractive place for additional in -fill housing is a good thing. However, it is clear that their are a number of already problematic traffic problems in Town and Country Village (I long for the days when I could drive up in front of any of my favorite stores there and walk right in..). This is a perfect example of why you need smart people who can work well together to come up with the right solution. More housing is great, but only in the context of parking, traffic and neighborhood compatibility constraints. Loud yet anonymous voices shouting online is not helpful. 1. More housing - The jobs/housing imbalance and the affordability issues continue to create problems for us. We need to create opportunities for our kids to be able to live here - they have all been priced out. 2. Intelligent Growth - Palo Alto is not Manhattan or Tokyo. The office market is clearly overbuilt, but there are opportunities to improve specific areas. Housing will be a bigger focus, but lining University Avenue, San Antonio Avenue or El Camino with 10-20 story towers is not smart for anyone. 3. Better Traffic Management - I am tired of the traffic. 4. Progress on Cubberley HS Site - This is too big of an asset and the potential too great 5. Improve University/California Ave More important than specific goals though, is how the PTC and its members contribute to the planning/management process. Smart people who can work well together can do almost anything. I think I can offer a very thoughtful and dynamic approach and can work well with current PTC members. Having spent 5 years on the PTC from 1990-95, I am very familiar with many of these documents, having participated in the creation/and or modification/interpretation of prior versions of these. Having been a homeowner who has done substantial renovations on a home considered for a historical designation, I have learned in more detail than I ever thought possible the zoning, building and design guidelines. I walk the Baylands almost daily with my black lab Shasta, so we can tell you in precise detail what a fabulous asset that is for the community (along with a. few suggestions for improvement). Please confirm that you have read the Boards and Yes Commissions Handbook. View the Boards and Commissions Handbook. Signature Name of signatory: William G Glazier Item 2 Page 12 Packet Page 43 of 5823 of 4 ITEM 2 Attachment A wi//ia t,h 6 Date Completed 01/13/2025 Item 2 Page 13 Packet Page 44 of 5824 of 4 Submitted on Receipt number Related form version I Personal information ITEM 2 Attachment A 15 January 2025, 7:15pm 65 15 Name Arthur Keller Cell Phone Number Home Phone Number Email Address Are you a Palo Alto resident? Yes Address City Palo Alto Postal Code 94303 Do you have any relatives or members of your household who No are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? Are you available and committed to complete the term applied No for? Fair Political Practices No California state law requires board/commission members to file a disclosure of financial interests (Fair Political Practices Commission, Conflict of Interest, Form 700). Do you/your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1. Engage in business with the City; 2. Provide products or services for City projects; or 3. Be affected by decisions of this Board or Commission? Excluding your principal residence, do you or your spouse own real property in Palo Alto? How did you learn about the vacancy on the Planning and No Community Group Item 2 Page 14 Packet Page 45 of 5821 of 3 Transportation Commission? Email from the City ITEM 2 Attachment A I Consent to Publish Personal Information on the City of Palo Alto Website Read the code, and check only ONE option below: I Personal and Job Experience Occupation I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. Consultant Please list your relevant education, training, experience, I have a Ph.D. in Computer Science from Stanford. I taught courses certificates of training, licenses, and professional registration. most recently at UC Santa Cruz. I serve as expert witness on patent If describing work experience, please include cases and advise startups. I also am President of Exir Bio, a company in company/employer name and occupation. the biotech space. Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held. I Application Questions 1. For which vacancy are you applying (check all that apply)? 2. Why are you interested in serving on the Planning & Transportation Commission and what experience would you bring to the position? 3. Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting, you can view archived videos from the Midpen Media Center. Archived video meetings are available from the Midpen Media Center Environment and Water Resources Committee, Santa Clara Valley Water District (including Vice Chair and Chair). For City of Palo Alto: Housing Element Working Group, (Comprehensive Plan) Citizens Advisory Committee (Co -Chair), Electric Vehicle Task Force (Development Center), Website Committee, Planning and Transportation Commission (Vice Chair). Facilities Steering Committee and Public Transit Coordinator for Gunn High School. Adobe Meadow Neighborhood Association (Founder and President). The Girls' Middle School (Board Member). Ohlone Elementary School (Site Council). Cong. Kol Emeth (Board Member). Electric Auto Association (Board Member). Partial term, Expiring 3/31/2026 Full term, Expiring 3/31/2029 I served on the PTC from 2006 through 2014. During this time, I chaired the Communications with Staff Committee, was a member of the Comp Plan Amendment Timing and Issues Committee, PCs and Development Agreements Committee, Report to Council Committee, Policies and Procedures Committee, Forums Committee, and Leveraging Technology Committee, and was a liaison to the Liaison, Charleston-Arastradero Corridor Stakeholders Group. I believe that my knowledge of planning issues as well as transportation issues would benefit the PTC and the City overall. Stream corridor protection is an issue that I consider as a homeowner and as a member of the Environmental and Water Resource Committee. I wonder why the staff report had Table 1 Streamside Regulations for streamside setback within Urbanized Areas (between Foothill Expy and US 101) Channelized Stream set equal to the same as Natural Stream and the PTC appeared to agree. There was some unspecified exception for floodwalls between Foothill Expy and 101, and I look forward to hearing about how this matter resolves when it returns to the PTC. 4. If appointed, what specific goals would you like to see the I would like to see the PTC fulfill its role as a recommending body to the Planning and Transportation Commission achieve, and how City Council by thoughtfully considering proposals for ordinance changes would you help in the process? and evaluating public input. I believe PTC meetings do not gamer sufficient public attention for the requisite public input to be obtained. I would like to consider how to raise the profile of the PTC if I am appointed. Item 2 Page 15 Packet Page 46 of 5822 of 3 ITEM 2 Attachment A 5. Planning and Transportation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection Palo Alto 2030 Comprehensive Plan (20171 Zoning Code Calrtornia Environmental Quanty Act El Camino Real Design Guidelines El Camino Real Master Plan Study( (2007) Area Plans such as the South of Forest Avenue (SOFA) I (2000) and II (2003) nds Master Plan (2008 If you'd like to provide any additional documents, please upload below. I served on the committee that wrote the edits to the Palo Alto 2030 Comprehensive Plan (2017). I served on the PTC when the Baylands Master Plan (2008) and the El Camino Real Master Plan (2007) were adopted. I was familiar with El Camino Real Design Guidelines when changes were considered in 2013. I reviewed the Zoning Code then as well. I'm familiar with CEQA reviews. Please confirm that you have read the Boards and Yes Commissions Handbook. View the Boards and Commissions Handbook. Signature Date Completed Name of signatory: Arthur M. Keller Link to signature 01/15/2025 Item 2 Page 16 Packet Page 47 of 5823 of 3 ITEM 2 Attachment A Submitted on Receipt number Related form version I Personal information 14 January 2025, 11:25pm 73 15 Name Kevin Ji Cell Phone Number Home Phone Number Email Address Are you a Palo Alto resident? Yes Address City Palo Alto Postal Code 94306 Do you have any relatives or members of your household who No are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? Are you available and committed to complete the term applied Yes for? Fair Political Practices No California state law requires board/commission members to file a disclosure of financial interests (Fair Political Practices Commission, Conflict of Interest, Form 700). Do you/your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1. Engage in business with the City; 2. Provide products or services for City projects; or 3. Be affected by decisions of this Board or Commission? Excluding your principal residence, do you or your spouse No own real property in Palo Alto? How did you learn about the vacancy on the Planning and Other: Palo Alto PTC Item 2 Page 17 Packet Page 48 of 5821 of 4 Transportation Commission? ITEM 2 Attachment A I Consent to Publish Personal Information on the City of Palo Alto Website Read the code, and check only ONE option below: I Personal and Job Experience Occupation Please list your relevant education, training, experience, certificates of training, licenses, and professional registration. If describing work experience, please include company/employer name and occupation. Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held. I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. Software Engineer I have a strong background in transportation planning and data analysis Founder, Stanford Data and Mapping for Society(dams.stanford.edu): I founded DAMS to apply data science to real -world issues. During my leadership, we completed these projects: California Transportation Commission: Developed visualizations to map out awarded projects for the Solutions for Congested Corridors, Trade Corridor Enhancement. Transportation Authority of Monterey County(https://www.tamcmonterey.org/collision-data-map): Designed a dashboard to analyze collision frequency and severity. Contra Costa Transportation Authority(https://kevinji.shinyapps.io/CCTA_pems tims_dashboard): Created a tool to evaluate traffic patterns along the 1-680 corridor. AC Transit: Developed a live bus tracking system and geospatial complaint map. City of Oakland(https://tinyurl.com/damsoakland): Built a platform to visualize demographic, economic, and housing data. I took classes at Stanford in transportation policy. Palo Alto Youth Council (2014-2017), Secretary (2015-2016): I chaired the events committee, where I led the creation of a high school intramural sports program and organized a job fair for teens to connect with local businesses. Palo Alto Bryant Street Garage Fund (now Think Fund) (2015-2017): I secured grants to support community -focused initiatives, such as organizing financial literacy workshops and developing programs to spark teenagers' interest in history. Michelle Obama's Better Make Room Initiative (2016-2021): I served as a student representative supporting programs that encouraged students, particularly those that are first -generation or low income to pursue higher education. Stanford University's Computer Science capstone course (2022-2024): I guided student teams on creating technical plans, and effectively communicating with stakeholders. The teams worked on projects for organizations like the LA Dodgers, Meta, and Daimler (Mercedes -Benz's parent company). Item 2 Page 18 Packet Page 49 of 5822 of 4 ITEM 2 Attachment A I Application Questions 1. For which vacancy are you applying (check all that apply)? Partial term, Expiring 3/31/2026 Full term, Expiring 3/31/2029 2. Why are you interested in serving on the Planning & I have been a lifelong resident of Palo Alto, attending Fairmeadow, Transportation Commission and what experience would you Terman, Gunn, and Stanford. Since childhood, I have been passionate bring to the position? about contributing to the community, starting with serving as a crossing guard at Cowper and Meadow in fifth grade, participating in the Palo Alto Youth Council during high school, and continuing to find ways to give back today. These experiences instilled in me a deep dedication to community service and a strong connection to Palo Alto. My background in transportation planning and data -driven policy further equips me to serve effectively on the PTC. With the recent departure of Palo Alto's head transportation official, Phillip Kamhi, I see an opportunity to apply my knowledge and skills to support the city through this transitional period. I am eager to leverage my experience and skills to develop innovative solutions for the pressing transportation and planning issues that lie ahead in my hometown. 3. Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting, you can view archived videos from the Midpen Media Center. Archived video meetings are available from the Midpen Media Center. 4. If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and how would you help in the process? 5. Planning and Transportation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection Palo Alto 2030 Comprehensive Plan (2017) Zoning Code City Charter California Environmental Quality Act El Camino Real Design Guidelines El Camino Real Master Plan Study (2007i Street safety is a cause I am deeply passionate about. During the first PTC meeting I attended, the "Safe Streets for All" (SS4A) Action Plan Collision Analysis was presented. Having relied on biking as my primary mode of transportation —from Fairmeadow to Gunn to Stanford —I understand the challenges cyclists face. Living near Meadow Drive, a key corridor for young cyclists, I often witness safety issues, especially on El Camino Way, a major route for both bikes and commercial traffic. While working with the Transportation Agency for Monterey County, I analyzed collision data to support safety -focused grant applications. This experience taught me how data -driven strategies can improve traffic safety. I aim to apply this expertise to the SS4A program and help create safer streets in our community. The PTC's work to analyze traffic data is essential for enhancing street safety. I am eager to contribute to these initiatives to ensure safer, more accessible streets for all. I am excited to be involved in the development of the San Antonio Road Coordinated Area Plan. Approximately one-third of the RHNA housing units identified in the housing element are located along San Antonio Road. However, from a transportation standpoint, the area is not yet equipped to accommodate this significant population increase effectively. To address these challenges, it is essential to proactively develop strategies for managing congestion and transforming San Antonio Road into a safe, sustainable, and accessible corridor for the new residents. The Planning and Transportation Commission (PTC) has a critical role in shaping the future development of this area. With the transportation department currently understaffed, I believe my prior experience working with local municipalities and county transportation agencies can contribute significantly to the planning and execution of effective solutions right here in Palo Alto. In the past year, I have familiarized myself with significant parts of the 2030 Comprehensive Plan and the Zoning Code, particularly about Planned Community (PC) zones. I also have limited familiarity with the city charter. Item 2 Page 19 Packet Page 50 of 5823 of 4 ITEM 2 Area Plans such as the South of Forest Avenue (SOFA) 1 (2000) and 11 (2003) Attachment A Plans Bavlands Master Plan (2008) If you'd like to provide any additional documents, please upload below. Please confirm that you have read the Boards and Yes Commissions Handbook. View the Boards and Commissions Handbook. Signature Name of signatory: Kevin Ji Link to signature Date Completed 01/14/2025 Item 2 Page 20 Packet Page 51 of 5824 of 4 Submitted on Receipt number Related form version I Personal information ITEM 2 Attachment A 15 January 2025, 11:47pm 59 15 Name Terrance Holzemer Cell Phone Number Home Phone Number Email Address Are you a Palo Alto resident? Yes Address City Palo Alto Postal Code 94306 Do you have any relatives or members of your household who No are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? Are you available and committed to complete the term applied Yes for? Fair Political Practices No California state law requires board/commission members to file a disclosure of financial interests (Fair Political Practices Commission, Conflict of Interest, Form 700). Do you/your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1. Engage in business with the City; 2. Provide products or services for City projects; or 3. Be affected by decisions of this Board or Commission? Excluding your principal residence, do you or your spouse own real property in Palo Alto? How did you learn about the vacancy on the Planning and No Community Group Item 2 Page 21 Packet Page 52 of 5821 of 3 Transportation Commission? Email from the City ITEM 2 Attachment A I Consent to Publish Personal Information on the City of Palo Alto Website Read the code, and check only ONE option below: I Personal and Job Experience Occupation Please list your relevant education, training, experience, certificates of training, licenses, and professional registration. If describing work experience, please include company/employer name and occupation. Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held. I Application Questions 1. For which vacancy are you applying (check all that apply)? 2. Why are you interested in serving on the Planning & Transportation Commission and what experience would you bring to the position? 3. Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting, you can view archived videos from the I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. Substitute Teacher Graduate/BA Degree in Public Relations, San Jose State, 1980. California CLAD Clear Teaching Credential 2005, PAUSD Substitute Teacher of the Year Award, three -times. Worked in both federal governmental agency (NASA -Ames Research Center — 5 years), private industry (Rudolph & Sletten, 10years; Hewlett-Packard, 1 -year) and now teaching (20+ years). Was the Chief Editor and Writer of several government and industrial publications, including the "Brown Paper Wrapper" and the "R&S News". Won two IABC Bay Area Silver Awards for excellence in writing and editing in 1994. Since 2002, my experience in teaching spans every grade level, from kindergarten to high school as well as functioning as the school librarian (2022-2023) and P.E. instructor for several semesters. Since 1995, I have served on the Board of our homeowners association, Palo Alto Central, located in the Mayfield neighborhood. I have served as a Board Member, President (for ten years) and currently now Vice President. I was also appointed by the Council to serve as a volunteer member on the NVCAP (North Ventura Coordinated Area Plan) Working Group from 2018 to 2021, attending and participating in over 14 separate meetings. In addition, I'm an City -trained Emergency Services volunteer (CERT) to assist in our community in the event of a major earthquake, natural disasters (including floods, etc.) or even a man-made event (chemical spill or terrorist situation). I have both CPR and heart defibrillator training. As a CERT, I have participated in several community -wide events, including the May Fete Parade, and St. Thomas Aquinas Easter Walk. Partial term, Expiring 3/31/2026 As a long time resident and home owner (30+ years), I've had the great privilege to learn and appreciate the elements that make up the community of Palo Alto today. Whether it is the City's fabulous parks and the variety within them, its inclusive community events (May Fete Parade, 3rd Thursdays, Summer Twight Music Series, etc.), or its unique residential neighborhoods, Palo Alto is a special place that I have come to love and enjoy every day. I believe my experience as a Board member, knowledge gained through the NVCAP Working Group, and my skills and abilities as a PAUSD educator for 20 years, I believe I have the right combination to serve on the Planning and Transportation Commission. Over the past 30 years, I have both observed and participated in numerous PTC and City Council meetings. I have had a wide variety of interests in several issues that have come before the PTC over the years including the President Hotel, 429 University, Castilleja Expansion, the Item 2 Page 22 Packet Page 53 of 5822 of 3 ITEM 2 Midpen Media Center. Archived video meetings are available from the Midpen Media Center. 4. If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and how would you help in the process? 5. Planning and Transportation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. Palo Alto 2030 Comprehensive Plan (2017) Zoning_Code City Charter California Environmental Quality Act El Camino Real Design Guidelines El Camino Real Master Plan Study (2007) Area Plans such as the South of Forest Avenue (SOFA) I (2000) and II (20031 Baylands Master Pla If you'd like to provide any additional documents, please upload below. current Housing Element, and one of my special interAtW0 I FA area, which is in my neighborhood and the destruction of part of California's history, the Thomas Foon Chew Cannery Building (otherwise known as 340 Portage Avenue). Although I agree with some of the City's goals of obtaining affordable housing land, which is needed in our City, I do not agree and fought against (at the HRB, PTC, City Council) the destruction of one of the most important and significant historic structures still remaining, intact, in our City. It's remains a major loss to our entire community and it's unfortunate that there were close -door negotiations with the developer that allowed for no real public input or discussion. My goals would be the following: 1) Having an increased community outreach and discussion program with residents directly about what they want their City to be in 20-30 years. The Town Halls, held by the City over the past two -three years are a good start, but it is too slow in being organized. There should be a dedicated City team that goes into the neighborhoods and asks them — not telling them -- what their issues are. I suggest the City work with well -established organizations or neighborhood associations, like PAN. I see little or no support of these organizations from the City. 2) Residential concerns and issues should be the PTC's primary focus, not developer -led ones. We need to ensure that residential voices are heard and appreciated. The single document that have some knowledge of is the 2030 Comprehensive Plan, which I have reviewed on several occasions. Please confirm that you have read the Boards and Yes Commissions Handbook. View the Boards and Commissions Handbook. Signature Name of signatory: Terrance Holzemer Link to signature Date Completed 01/15/2025 Item 2 Page 23 Packet Page 54 of 5823 of 3 Submitted on Receipt number Related form version I Personal information ITEM 2 Attachment A 7 January 2025, 10:19pm 67 15 Name Salim Parak Cell Phone Number Home Phone Number Email Address Are you a Palo Alto resident? Yes Address City Palo Alto Postal Code 94303 Do you have any relatives or members of your household who No are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? Are you available and committed to complete the term applied Yes for? Fair Political Practices No California state law requires board/commission members to file a disclosure of financial interests (Fair Political Practices Commission, Conflict of Interest, Form 700). Do you/your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1. Engage in business with the City; 2. Provide products or services for City projects; or 3. Be affected by decisions of this Board or Commission? Excluding your principal residence, do you or your spouse own real property in Palo Alto? How did you learn about the vacancy on the Planning and No Email from the City Item 2 Page 24 Packet Page 55 of 5821 of 3 Transportation Commission? ITEM 2 Attachment A I Consent to Publish Personal Information on the City of Palo Alto Website Read the code, and check only ONE option below: I Personal and Job Experience Occupation Please list your relevant education, training, experience, certificates of training, licenses, and professional registration. If describing work experience, please include company/employer name and occupation. Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held. I Application Questions I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. Technical Educator My role at my job has been in the training delivery and curriculum development at companies such as Google (close to 14 years), Linkedin, Tiktok. I create and deliver training (live and eLearning) + certification programs. I have certificate in Cybersecurity. I have been volunteering with coaching a referring soccer and baseball in Palo Alto. I help with organizing my local neighbourhood's block party each year. 1. For which vacancy are you applying (check all that apply)? Partial term, Expiring 3/31/2026 2. Why are you interested in serving on the Planning & Transportation Commission and what experience would you bring to the position? Full term, Expiring 3/31/2029 Since my work has been very close to my residence in Palo Alto, I normally rode my bike. I bring many years of commuting by bike, walk and public transit. I love riding my bike and bike for errands and pleasure in Palo Alto. 3. Please describe an issue that recently came before the Micromobility. I have generally traveled to work using either my bike, Commission that is of particular interest to you and describe walk, carpool or public transit while living in Palo Alto. I was surprised why you are interested in it. If you have never been to a when someone recognized me as the bike guy. I would like to research Commission meeting, you can view archived videos from the more into bring car alternatives to the city Midpen Media Center. Archived video meetings are available from the Midpen Media Center. 4. If appointed, what specific goals would you like to see the Consideration of both transportation other than cars for new residential Planning and Transportation Commission achieve, and how builds would you help in the process? 5. Planning and Transportation Commission Members work none with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. Zoning Code City Charter California Environmental Quality Act El Camino Real Design Guidelines El Camino Real Master Plan Study (20071 Area Plans such as the South of Forest Avenue (SOFA) 1 (2000) and 11 (2003) Plans Baylands Master Plan (2008) Item 2 Page 25 Packet Page 56 of 5822 of 3 ITEM 2 Attachment A If you'd like to provide any additional documents, please upload below. Please confirm that you have read the Boards and Yes Commissions Handbook. View the Boards and Commissions Handbook. Signature Name of signatory: salim parak Link to signature Date Completed 01/07/2025 Item 2 Page 26 Packet Page 57 of 5823 of 3 ITEM 2 Attachment A Submitted on Receipt number Related form version Personal Information Name Cell Phone Number Home Phone Number Email Address Are you a Palo Alto resident? Address 3 January 2025, 3:15pm 55 15 Thomas W Kellerman Yes City Palo Alto Postal Code 94301 Do you have any relatives or members of your household who No are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? Are you available and committed to complete the term applied Yes for? Fair Political Practices No California state law requires board/commission members to file a disclosure of financial interests (Fair Political Practices Commission, Conflict of Interest, Form 700). Do you/your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1. Engage in business with the City; 2. Provide products or services for City projects; or 3. Be affected by decisions of this Board or Commission? Excluding your principal residence, do you or your spouse No own real property in Palo Alto? How did you learn about the vacancy on the Planning and Palo Alto Weekly Item 2 Page 27 Packet Page 58 of 5821 of 4 Transportation Commission? City Website ITEM 2 Attachment A I Consent to Publish Personal Information on the City of Palo Alto Website Read the code, and check only ONE option below: I Personal and Job Experience Occupation I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. Attorney Please list your relevant education, training, experience, Western Illinois University, BA 1976, Major: Economics certificates of training, licenses, and professional registration. UCLA, JD 1980 If describing work experience, please include Member of the State Bar of California company/employer name and occupation. Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held. I Application Questions I have been a corporate attorney in private practice since 1980, focusing on corporate advice and governance matters, public offerings and private financings, merger and acquisitions and related corporate transactions. My practice has primarily involved companies in the technology industries, ranging from start-ups to Global Fortune 500 corporations. I am currently a Senior Counsel at Morgan, Lewis & Bockius, an AmLaw 100 law firm. I was previously a partner with the firm, and served as the Managing Partner of the Palo Alto office for 13 years, as well as Co - Chair of the firmwide Venture Capital and Emerging Business Group and firmwide Deputy Leader of the firmwide Corporate Practice Group. I previously practiced in San Francisco and, for four years, in London. I have previously served on the Boards of several non-profit organizations, including: (i) Director (2003-2018) and Chair (2016 - 2017) of the Silicon Valley Campaign for Legal Services; and (ii) Director (2008-2015) and Chair (2014) of Computers for Everyone. In addition, I regularly serve as outside, pro bono counsel to non-profit organizations, including: (i) assisted in the formation and represented Community Housing Partnership for many years, an organization that builds and operates permanent housing for formerly homeless residents; (ii) currently serve as outside counsel to the Riekes Center, a Menlo Park community center, and as U.S. counsel to GOAL, an NGO providing relief to refugees globally. I currently serve on the Board of the Outreach Committee of the First Congregational Church of Palo Alto, and I volunteer with Second Harvest. I have also been active in monitoring and providing input to the City Council regarding the Palo Alto at -grade crossing design efforts. 1. For which vacancy are you applying (check all that apply)? Partial term, Expiring 3/31/2026 Full term, Expiring 3/31/2029 2. Why are you interested in serving on the Planning & I have a lifelong interest in transportation and urban planning, stretching Transportation Commission and what experience would you back to my economics studies in college. I believe that zoning and bring to the position? transportation planning can have an enormous impact on communities Item 2 Page 28 Packet Page 59 of 5822 of 4 ITEM 2 and individual well-being. I have lived in Palo Alto sinc�t1�f1a& benefited greatly from the quality of life available here. While the City does an excellent job of long-term planning, many goals remain unfulfilled. I would be honored to contribute to the process of implementing our community's goals. While I do not have an urban planning background, I believe I have a skill set that would be useful for service on the PTC. I have spent 44 years assisting clients in the development and implementation of complex corporate plans. I have extensive experience in developing and negotiating solutions in complex, highly -charged commercial settings. I am detail -oriented and willing to put in the time necessary to understand problems and collaboratively find solutions. 3. Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting, you can view archived videos from the Midpen Media Center. Archived video meetings are available from the Midpen Media Center. 4. If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and how would you help in the process? 5. Planning and Transportation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection California Environmental Quality Act El Camino Real Design Guidelines El Camino Real Master Plan Study(2007) Area Plans such as the South of Forest Avenue (SOFA) I (2000) and II (2003) Plans Baylands Master Plan (2008) If you'd like to provide any additional documents, please upload below. I noted with interest the discussion in the December 2024 meeting regarding the HIP and AHIP proposals. I am particularly interested in the efforts to develop additional housing units in Palo Alto. While the City's 2030 Comprehensive Plan, the El Camino Real Master Plan Study, the South of Forest Avenue 2003 Plan, and other planning efforts have emphasized the need to develop additional housing, particularly some more affordable housing, the implementation of these plans is incomplete. The HIP and AHIP are significant steps towards implementing these plans. While there are many challenges outside the control of the City, I believe it is essential that we continue to do all we can to advance the housing goals that have been adopted in the City's various planning documents. Palo Alto has committed countless hours towards producing detailed, thoughtful development and transportation plans. I believe that our citizens, elected officials and City staff are committed to making significant progress in implementing these plans over the next few years. The PTC is a crucial part of this process. I believe my experience in seeking compromise and crafting solutions to complex problems, and assisting diverse constituents in reaching agreement and moving forward collaboratively, can be useful as the PTC works to fulfill its mission and achieve the stated goals of the City in its adopted plans. I have been involved in the discussions regarding the Palo Alto At -Grade Crossings and proposed infrastructure construction alternatives. In that process, I have had the opportunity to review the 2030 Comprehensive Plan and parts of some of the other documents listed. Please confirm that you have read the Boards and Yes Commissions Handbook. View the Boards and Commissions Handbook. Signature Name of signatory: Thomas W. Kellerman Item 2 Page 29 Packet Page 60 of 5823 of 4 ITEM 2 Attachment A Link to signature Date Completed 01/03/2025 Item 2 Page 30 Packet Page 61 of 5824 of 4 ITEM 2 Attachment A Submitted on Receipt number Related form version Personal Information Name Cell Phone Number Home Phone Number Email Address Are you a Palo Alto resident? Address 8 January 2025, 1:38pm 68 15 Henrik Morkner Yes City Palo Alto Postal Code 94306 Do you have any relatives or members of your household who No are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? Are you available and committed to complete the term applied Yes for? Fair Political Practices No California state law requires board/commission members to file a disclosure of financial interests (Fair Political Practices Commission, Conflict of Interest, Form 700). Do you/your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1. Engage in business with the City; 2. Provide products or services for City projects; or 3. Be affected by decisions of this Board or Commission? Excluding your principal residence, do you or your spouse No own real property in Palo Alto? How did you learn about the vacancy on the Planning and Email from the City Item 2 Page 31 Packet Page 62 of 5821 of 3 Transportation Commission? ITEM 2 Attachment A I Consent to Publish Personal Information on the City of Palo Alto Website Read the code, and check only ONE option below: I Personal and Job Experience Occupation I give permission for the City of Palo Alto to post to the City's website the attached Board and Commission Application intact. I have read and understand my rights under Government Code Section 6254.21. I may revoke this permission at any time by providing written notice to the Palo Alto City Clerk. Semi -retired Please list your relevant education, training, experience, Education certificates of training, licenses, and professional registration. MSEE, San Jose State University, 1989 If describing work experience, please include BSEE, San Jose State University, 1984 company/employer name and occupation. Associate in Arts, Art History, Mission College, 2022 Experience Vice-President(Part time), CFC INC, 2015 -present- Investment management Director of Engineering, MACOM, 2010-2015 - Microwave & Wireless circuit design R&D Manager, BROADCOM, 2001-2010- Microwave & Wireless circuit design Designer, AGILENT TECHNOLOGIES 2001-2005- Project management & IC design Designer, HEWLETT-PACKARD 1991-2001- Project management & IC design Test Engineer, AVANTEK, 1984-1991- model extraction, write test code PATENTS 9013237, 8829997, 8301091, 7239020, 7232708,6211729, 6118338 PUBLICATIONS Over 40 peer reviewed publications in IEEE MMIC, RFIC, and Microwave Journal Please describe your involvement in community activities, none volunteer and civic organizations, including dates and any offices held. I Application Questions 1. For which vacancy are you applying (check all that apply)? Partial term, Expiring 3/31/2026 2. Why are you interested in serving on the Planning & Transportation Commission and what experience would you bring to the position? I am paralyzed waist down from a family farm accident (burst L3) in 2019. I typically use a wheelchair but can manage a few steps with crutches. While I am sure Palo Alto is very ADA compliant, I feel I can bring a unique and inclusive perspective to the commission from a handicap perspective. Sometimes even simple changes to plans and access can make huge differences to the disabled. Many times these are things that those who have never experienced disabled challenges would never think of. That being said I have always been a practical and hands-on person. I never asked my engineers or staff to do something I had not tried myself, even badly. I use to love the HP "management by walking around" mentality. A good organization is a family and work together, not apart. 3. Please describe an issue that recently came before the A good example would be the 12/11/24 review of 4075 El Camino Way Commission that is of particular interest to you and describe Applicant's Request for an Amendment to a Planned Community Zone Item 2 Page 32 Packet Page 63 of 5822 of 3 ITEM 2 why you are interested in it. If you have never been to a Commission meeting, you can view archived videos from the Midpen Media Center. Archived video meetings are available from the Midpen Media Center. 4. If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and how would you help in the process? 5. Planning and Transportation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection Palo Alto 2030 Comprehensive Plan (2017) Zoning Code City Charter California Environmental Quality Act El Camino Real Desian Guidelines Area Plans such as the South of Forest Avenue (SOFA) 1 (2000) and 11 (2003) Plans Baylands Master Plan (2008) District (PC -5116) to Allow for Modifications to an EAA4OMRnt A Assisted Living and Memory Care Facility. Many people in assisted living have the same challenges as myself. Developers want to max mize space and profit and may make access and usage secondary. The commission may not even notice the reality of the changes to the disabled, even if ADA compliant. Having a practical engineer well versed in construction and materials combined with first hand knowledge of disabled transportation and access is very important. I would simply want to add a balanced and inclusive perspective of disabled needs and wants to the commission. This can be simple changes to plans to accommodate stair placement, ramps. rails, clearances, lighting, slopes, and visibility. Many things can be done in early stages to make life easier for the disabled for little to no additional cost if planned appropriately. I am practical and educated so I feel my inputs could be well valued. I am well versed in the Zoning Code as I have drawn, submitted and received approval for plans of my present home in Palo Alto. I have gone through the Palo Alto Comprehensive Plan, City Charter, and California Environmental Quality Act (my wife is a registered professional environmental engineer). I have only browsed the El Camino Real Design Guidelines and Master Plan Study. If you'd like to provide any additional documents, please Henrik Morkner MRES38.pdf upload below. Please confirm that you have read the Boards and Commissions Handbook. View the Boards and Commissions Handbook. Signature Date Completed Yes Name of signatory: Henrik Morkner 01/08/2025 Item 2 Page 33 Packet Page 64 of 5823 of 3 Submitted on Receipt number Related form version I Personal information ITEM 2 Attachment A 11 January 2025, 9:00pm 71 15 Name Todd James Cell Phone Number Home Phone Number Email Address Are you a Palo Alto resident? Yes Address City Palo Alto Postal Code 94301 Do you have any relatives or members of your household who No are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? Are you available and committed to complete the term applied Yes for? Fair Political Practices No California state law requires board/commission members to file a disclosure of financial interests (Fair Political Practices Commission, Conflict of Interest, Form 700). Do you/your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1. Engage in business with the City; 2. Provide products or services for City projects; or 3. Be affected by decisions of this Board or Commission? Excluding your principal residence, do you or your spouse own real property in Palo Alto? How did you learn about the vacancy on the Planning and No Other: A close personal friend Item 2 Page 34 Packet Page 65 of 5821 of 3 Transportation Commission? ITEM 2 Attachment A I Consent to Publish Personal Information on the City of Palo Alto Website Read the code, and check only ONE option below: I Personal and Job Experience Occupation Please list your relevant education, training, experience, certificates of training, licenses, and professional registration. If describing work experience, please include company/employer name and occupation. Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held. I Application Questions I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. Former Sr. Photo Editor, National Geographic After attending the University of Missouri, School of Journalism, I worked in publishing for more than three decades at National Geographic magazine, Fortune and Businessweek. I worked as a draftsman in my father's architectural firm and in construction while in college. My interest in urban planning spans from the competing visons of Frank Lloyd Wright and Corbusier a century ago to modern concepts of walkable, people -centered places advocated by San Francisco architect and urban planner Peter Calthorpe (who grew up in Palo Alto) He is a founding member of the Congress of New Urbanism and was central to a National Geographic magazine cover story on designing Cities of the Future that I worked on. During my 26 years at National Geographic I volunteered to teach at photo camps for underserved communities in Chad, The Pine Ridge Indian Reservation, Little Havana in Miami, and Philadelphia. 1. For which vacancy are you applying (check all that apply)? Partial term, Expiring 3/31/2026 2. Why are you interested in serving on the Planning & Transportation Commission and what experience would you bring to the position? 3. Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting, you can view archived videos from the Midpen Media Center. Archived video meetings are available from the Midpen Media Center. Full term, Expiring 3/31/2029 I have always been interested in urban planning and architecture. Growing up, I watched as my architect father found novel ways to blend his craft and his social concerns to design, build, and fund affordable housing for the Chickasaw Nation and the elderly community in Oklahoma where we lived. I would like to apply those same sensibilities and blend my own interest in urban planning and architecture with my perspective and skills as a journalist to help shape and improve my community. Watching the FTC balance community interests of livability and developer's interest of profitability is fascinating. Affordable housing seems to be the principal currency in this negotiation along with the impact of design details like setbacks, parking and garbage collection on the neighborhood. One project gave priority for affordable housing units to teachers but at a cost few teachers could afford. It appeared to solve a problem in principle but not in practice and at a cost to the city from waived development fees. Another development behind Town & Country showed how complex and competing interests can result in an overbuilt project that is less than desirable to almost everyone even though it adds more needed housing. The project I found most encouraging was an apartment complex on San Antonio. Everyone on the Commission found something to admire about this project, and so did I, showing that principle -driven design can serve both the community and property developers. Item 2 Page 35 Packet Page 66 of 5822 of 3 ITEM 2 4. If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and how would you help in the process? 5. Planning and Transportation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection Palo Alto 2030 Comprehensive Plan (20171 Zoning Code California Environmental Quality Act El Camino Real Design Guidelines El Camino Real Master Plan Study (2007) Area Plans such as the South of Forest Avenue (SOFA) I (2000) and II (2003) lands Master Plan (2008 If you'd like to provide any additional documents, please upload below. Attachment A I would like to explore whether a framework can be developed to estimate the value of the exceptions that developers are asking for to ensure they are in balance with the costs of those exceptions to the city and the value they return. Detailed digital mapping is being used in creative ways including urban development planning. I want to learn more about what is available and whether there are mapping solutions that could enhance the PTCs ability forecast how individual decisions could collectively influence livability over time, for example by altering the tree canopy and green space. I also want to better understand how other cities are resolving similar challenges like downtown infill development. For instance, San Luis Obispo seems to have balanced a slow -growth and historical preservation mindset with modern construction in a harmonious way. I have no experience working with these documents Please confirm that you have read the Boards and Yes Commissions Handbook. View the Boards and Commissions Handbook. Signature Name of signatory: Todd James Uploaded signature image: Todd Signaure.Jpg Date Completed 01/11/2025 Item 2 Page 36 Packet Page 67 of 5823 of 3 Submitted on Receipt number Related form version I Personal information ITEM 2 Attachment A 4 January 2025, 4:50pm 62 15 Name Declan King Cell Phone Number Home Phone Number Email Address Are you a Palo Alto resident? Yes Address City Palo Alto Postal Code 94303 Do you have any relatives or members of your household who No are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? Are you available and committed to complete the term applied Yes for? Fair Political Practices No California state law requires board/commission members to file a disclosure of financial interests (Fair Political Practices Commission, Conflict of Interest, Form 700). Do you/your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1. Engage in business with the City; 2. Provide products or services for City projects; or 3. Be affected by decisions of this Board or Commission? Excluding your principal residence, do you or your spouse own real property in Palo Alto? How did you learn about the vacancy on the Planning and No Other: Nextdoor Item 2 Page 37 Packet Page 68 of 5821 of 3 Transportation Commission? ITEM 2 Attachment A I Consent to Publish Personal Information on the City of Palo Alto Website Read the code, and check only ONE option below: I Personal and Job Experience Occupation I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. Student in urban planning at San Francisco State University Please list your relevant education, training, experience, I am currently a student at San Francisco State University studying certificates of training, licenses, and professional registration. urban planning and policy. I also have ties with Palo Alto and have been If describing work experience, please include involved in the Rinconada community garden. company/employer name and occupation. Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held. I Application Questions 1. For which vacancy are you applying (check all that apply)? 2. Why are you interested in serving on the Planning & Transportation Commission and what experience would you bring to the position? 3. Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting, you can view archived videos from the Midpen Media Center. Archived video meetings are available from the Midpen Media Center. I worked under the garden liaison in the Rincon community garden. I also volunteered at the Palo Alto children's theater. Full term, Expiring 3/31/2029 At 23 years old, I bring a fresh perspective, a strong passion for urban planning, and a commitment to shaping equitable and sustainable communities. As a USP major at San Francisco State University, I've immersed myself in studying land use and transportation, exploring critical issues like gentrification and the relationship between autonomous vehicles and traffic. My academic pursuits are complemented by hands-on experience, such as volunteering at the Rinconada Community Garden and contributing to community efforts at BORP, where I developed a deep appreciation for the connection between public spaces and quality of life. I have grown up in Palo Alto my whole life and have seen the many changes it has been through. One issue that I have recently posted about to my Nextdoor was the discussions about expanding protected bike lanes on el Camino for cyclists. The repaving of El Camino Real includes the addition of a bike lane, which has resulted in narrower traffic lanes in the southbound section. This caused quite the debate on my post. I Although I do drive down El Camino almost daily I believe this development is making the sidewalks safer and reducing car dependency. 4. If appointed, what specific goals would you like to see the One goal for myself would be to create more community outreach to the Planning and Transportation Commission achieve, and how older generations through apps like Nextdoor and through places where would you help in the process? memo we of our community gather like libraries and churches. Getting everyone's input would help myself advocate for the public. I would make it my own personal goal to help to preserve the character of Palo Alto while addressing its modem challenges. 5. Planning and Transportation Commission Members work I have some familiarity with the El Camino Real Design guidelines. with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection. Palo Alto 2030 Comprehensive Plan (2017) Zoning Code Item 2 Page 38 Packet Page 69 of 5822 of 3 y Charter California Environmental Quality Act El Camino Real Design Guidelines El Camino Real Master Plan Study (2007) Area Plans such as the South of Forest Avenue (SOFA) 1 (2000) and 11 (2003) Plans Bavlands Master Plan (2008) If you'd like to provide any additional documents, please upload below. Please confirm that you have read the Boards and Commissions Handbook. View the Boards and Commissions Handbook. Signature Date Completed Declan King_ Resume 2024.pddf Yes Name of signatory: Declan King Link to signature 01/04/2025 ITEM 2 Attachment A Item 2 Page 39 Packet Page 70 of 5823 of 3 Submitted on Receipt number Related form version I Personal information ITEM 2 Attachment A 16 January 2025, 12:08am 75 15 Name Rika YeaKyung Yamamoto Cell Phone Number Home Phone Number Email Address Are you a Palo Alto resident? Yes Address City Palo Alto Postal Code 94301 Do you have any relatives or members of your household who No are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? Are you available and committed to complete the term applied Yes for? Fair Political Practices No California state law requires board/commission members to file a disclosure of financial interests (Fair Political Practices Commission, Conflict of Interest, Form 700). Do you/your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1. Engage in business with the City; 2. Provide products or services for City projects; or 3. Be affected by decisions of this Board or Commission? Excluding your principal residence, do you or your spouse own real property in Palo Alto? How did you learn about the vacancy on the Planning and No City Website Item 2 Page 40 Packet Page 71 of 5821 of 4 ITEM 2 Transportation Commission? Attachment A I Consent to Publish Personal Information on the City of Palo Alto Website Read the code, and check only ONE option below: I Personal and Job Experience Occupation Please list your relevant education, training, experience, certificates of training, licenses, and professional registration. If describing work experience, please include company/employer name and occupation. Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held. I Application Questions I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. Chair of the Palo Alto Community Advisory Committee for Special Education EDUCATION • SungShin Women's University School of Social Science, Psychology B.S • Eastern Gateway Community College, Paralegal Study - Ethics, Legal Writing, Tort, Family, Estate, Real Estate, Contract PROFESSIONAL DEVELOPMENT • Legal Courses- Affordable Housing, Alternate Dispute Resolution Conference and Special Education Advocate Training 1,11,111 with COPAA • Real Estate Planing Process and Redevelopment Training with NJ Redevelopment Authority • Real Estate Commercial Investment Courses with CCIM PROFESSIONAL EXPERIENCE • NJ Licensed Real Estate Associate for 19 years- Relo REDAC,Inc, Coldwell Banker Commercial • Special Education and Disability Advocate • Principal for Residential Real Estate Project and Property Manager • In Flight Supervisor, Asiana Airlines COMMUNITY SERVICE • 2022- Current: Chairperson, Palo Alto Community Advisory Committee for Special Education • 2017-2022: Parent Education and Support Lead, Palo Alto Community Advisory Committee for Special Education •2022- Current: PAUSD Parent Representative, Santa Clara SELPA Community Advisory Committee • 2021-2022: Assistant Executive Vice President, Palo Alto Council of PTAs • 2019-2021: Parliamentarian, Palo Alto Council of PTAs • 201&2022: Treasurer, Board of Directors, Palo Alto High School Robotics Boosters • Enews Editor, JLS Middle PTA and Greene Middle PTA • English for Second Language Volunteer Tutor for Adults 1. For which vacancy are you applying (check all that apply)? Partial term, Expiring 3/31/2026 2. Why are you interested in serving on the Planning & Transportation Commission and what experience would you bring to the position? Full term, Expiring 3/31/2029 I am passionate about serving on the PTC to support Palo Alto in achieving the vision outlined in its Comprehensive Plan. The Plan's focus on guiding preservation, sustainable growth, and community values resonates deeply with my commitment to fostering balanced development and inclusivity. I bring over 19 years of experience as a licensed real estate associate, with expertise in zoning, redevelopment, and project management. I also bring leadership experience as Chair of the Palo Alto CAC for Special Education, where I successfully Item 2 Page 41 Packet Page 72 of 5822 of 4 ITEM 2 collaborated with diverse stakeholders to address cor f4i ti t Ply background in legal studies and advanced real estate training equips me to evaluate policies and development projects through a lens of compliance and long-term community impact. I am eager to contribute to creating a vibrant, inclusive, and sustainable future for Palo Alto. 3. Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting, you can view archived videos from the Midpen Media Center. Archived video meetings are available from the Midpen Media Center. 4. If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and how would you help in the process? 5. Planning and Transportation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection City Charter California Environmental Quality Ad El Camino Real Design Guidelines Area Plans such as the South of Forest Avenue (SOFA) 1 (2000) and (2003) Plans Bavlands Master Plan (2008) One issue of particular interest to me is The Academy project at 3265 El Camino Real, which proposes 100% affordable housing for educators and classified staff in Palo Alto. This project addresses a pressing challenge: the high cost of living forcing 87% of our teachers to reside outside the city. As an advocate for equitable community development, I see this project as a vital step toward strengthening our schools, reducing greenhouse gas emissions through transit -oriented design, and aligning with the city's Comprehensive Plan. It represents a commitment to retaining quality educators and fostering a sustainable, inclusive community. If appointed, I would focus on advancing sustainable and equitable development, particularly through implementing the Comprehensive Plan's priorities. Key goals include expanding affordable housing, supporting transit -oriented development, and enhancing pedestrian and cyclist infrastructure. I would also prioritize community engagement, ensuring diverse voices are reflected in decisions, and promoting racial and social equity through planning policies. With experience in real estate, redevelopment, and zoning processes, I bring a practical understanding of land use and housing challenges. My leadership roles, such as Chair of the Palo Alto CAC and involvement in PTA organizations, demonstrate my ability to collaborate with stakeholders and advocate for community -focused solutions. By leveraging my skills and knowledge, I aim to help the Commission craft policies that balance growth, environmental sustainability, and community needs. I had my experience with Zoning Code. For my current residence in Palo Alto, I worked on zoning and permit applications to convert an attached garage into a master bedroom suite. This involved collaborating with contractors, submitting required documents, and adhering to city zoning ordinances. I reviewed and completed building permit applications, including construction specifications and contractor licensing requirements, ensuring compliance with city and state regulations. This hands-on experience provided me with practical knowledge of Palo Alto's zoning processes and development standards. If you'd like to provide any additional documents, please Rika Yamamoto Spring 2024 .pddf upload below. Please confirm that you have read the Boards and Yes Commissions Handbook. View the Boards and Commissions Handbook. Signature Name of signatory: Rika Yamamoto Link to signature Item 2 Page 42 Packet Page 73 of 5823 of 4 ITEM 2 Attachment A Date Completed 01/15/2025 Item 2 Page 43 Packet Page 74 of 5824 of 4 ITEM 2 Attachment A Submitted on Receipt number Related form version Personal Information Name Cell Phone Number Home Phone Number Email Address Are you a Palo Alto resident? Address 14 January 2025, 7:04pm 69 15 Michael Regula Yes City Palo Alto Postal Code 94301 Do you have any relatives or members of your household who No are employed by the City of Palo Alto, who are currently serving on the City Council, or who are Commissioners or Board Members? Are you available and committed to complete the term applied Yes for? Fair Political Practices No California state law requires board/commission members to file a disclosure of financial interests (Fair Political Practices Commission, Conflict of Interest, Form 700). Do you/your spouse have an investment in, or do you or your spouse serve as an officer or director of, a company doing business in Palo Alto which you believe is likely to: 1. Engage in business with the City; 2. Provide products or services for City projects; or 3. Be affected by decisions of this Board or Commission? Excluding your principal residence, do you or your spouse No own real property in Palo Alto? How did you learn about the vacancy on the Planning and Community Group Item 2 Page 44 Packet Page 75 of 5821 of 3 Transportation Commission? Palo Alto Weekly ITEM 2 Attachment A I Consent to Publish Personal Information on the City of Palo Alto Website Read the code, and check only ONE option below: I Personal and Job Experience Occupation Please list your relevant education, training, experience, certificates of training, licenses, and professional registration. If describing work experience, please include company/employer name and occupation. Please describe your involvement in community activities, volunteer and civic organizations, including dates and any offices held. I Application Questions I request that the City of Palo Alto redact my home address, phone numbers, and email address from the attached Board and Commission Application prior to posting to the City's website. Techno Commercial Manager I am current a Techno Commercial Manager in the Energy Systems group at Birla Carbon, a company based in Marietta, GA. Working remotely, I am a subject material expert in designing materials that power lithium -ion batteries. Interfacing with prospective customers is also a major components of my role, which includes attending industry trade shows and conferences to learn about the materials needs for battery manufacturers. Many of the battery manufacturers with whom I interact have ambitions to manufacturer batteries for use in electric vehicles, giving me a valuable perspective on the benefits and drawbacks of this technology as we plan our city for the future. I earned my PhD in chemical engineering from Penn State University in 2018, wherein my doctoral dissertation explored new materials for lithium -sulfur batteries. For over a decade now, I have found myself drawn to sports as a way to bring people together. In my year since moving to Palo Alto, I have been active in the Silicon Valley Disc Golf Club (SVDGC). I ran a 9 -week league during the summer of 2024 in which over 100 people from the greater San Jose came out for friendly competition. The league and my continued involvement in the club have been an excellent way to make this area feel like home. As a graduate student at Penn State, I founded Philanthropic Fantasy Sports (PFS), an organization that uses fantasy sports to raise money for causes that are promoting the welfare of others. I continue to serve as an advisor for an organization that has raised and donated over $50,000 since 2015. These experiences have been helpful in seeing the tremendous benefits that finding a common bond can have on people. I look forward to learning about and perhaps even founding organizations that do likewise in Palo Alto. 1. For which vacancy are you applying (check all that apply)? Partial term, Expiring 3/31/2026 2. Why are you interested in serving on the Planning & Transportation Commission and what experience would you bring to the position? Full term, Expiring 3/31/2029 Since I was a junior in high school, my career objectives have been to have an impact on making our transportation systems both economically and environmentally sustainable for all. Local government and specifically the Planning & Transportation Commission make decisions that can enable our community to thrive for generations. My voices as a battery engineer, as a newer resident to the community, as a renter in the community, and as a person in their mid -30s all give me a perspective that would be valuable for the commission and city council. I hope that my voice and the voices of those that end up serving on the commission can allow Palo Alto to achieve and go beyond the goals set forth in the Sustainability and Climate Action Plan. Affordable housing and equitable transportation are two of the biggest challenges facing our community. Having the opportunity to directly have an impact on Item 2 Page 45 Packet Page 76 of 5822 of 3 ITEM 2 addressing those challenges would be an honor. Attachment A 3. Please describe an issue that recently came before the Commission that is of particular interest to you and describe why you are interested in it. If you have never been to a Commission meeting, you can view archived videos from the Midpen Media Center. Archived video meetings are available from the Midpen Media Center. 4. If appointed, what specific goals would you like to see the Planning and Transportation Commission achieve, and how would you help in the process? 5. Planning and Transportation Commission Members work with the documents listed below. If you have experience with any of these documents, please describe that experience. Experience with these documents is not required for selection El Camino Real Design Guidelines El Camino Real Master Plan Study (20071 Area Plans such as the South of Forest Avenue (SOFA) 1 (2000) and 11 (2003) Plans Baylands Master Plan (2008) If you'd like to provide any additional documents, please upload below. Please confirm that you have read the Boards and Commissions Handbook. View the Boards and Commissions Handbook. In the October 30, 2024 PTC meeting, the commission had a study session regarding the conducting a feasability study on the implementation of a micromobility program in Palo Alto. All programs that increase the efficiency of our transportation systems should be explored. There are several details that must be addressed, however, to ensure successful adoption within the community. One common gripe with micromobility devices, like electric scooters, are that they often become littered on the city's sidewalks with seemingly no penalties to any parties. There was an interesting discussion about being able to use the provisions in the state's new daylighting law to potentially solve this issue. The success of a potential micromobility program is directly related to other decisions made by the PTC, including successful implementation of the city's Housing Element. In 2022, the City of Palo Alto adopted an ambitious goal to reduce carbon emissions by 80% from 1990 levels. At that time, transportation accounted for more than 60% of Palo Alto's emissions. This on -going issue not only has to do with the powertrain by which the majority of our transportation is still powered (i.e. gasoline powered combustion engines), but also with the way the city is currently designed that still largely demands private motor vehicles to live. Palo Alto is the best city I have lived in because it does give people a fighting chance to walk, bike, and take public transit to important places. Palo Alto has many economic, environmental, and political advantages that offer clear opportunities to accelerate our reduction in transportation -related emissions. In addition to our emissions goals, I would like for Palo Alto to resolve to strive zero traffic -related deaths year over year, which has been accomplished in other cities in the United States. My experience with these documents is very -high level in nature. I am aware that they are guiding the decisions made about housing, transportation, and several other topics within Palo Alto. I am excited to learn more about their applicability to the specific projects that come through the PTC. 20250114_Regula_Michael_Resume. pddf Yes Signature Name of signatory: Michael Regula Link to signature Date Completed 01/14/2025 Item 2 Page 46 Packet Page 77 of 5823 of 3 ITEM 3 City Council Staff Report From: City Manager CITY O F Report Type: STUDY SESSION PALO Lead Department: City Manager ALTO Meeting Date: February 10, 2025 Report #:2412-3878 TITLE Housing and Homelessness in Palo Alto: Review of current efforts including the 2024 Gap Analysis Report, Update on Enforcement Work, Overview of Engagement Framework to Develop an Implementation Plan, and Discussion of Other Potential Next Steps RECOMMENDATION Staff recommends that Council: 1. Receive an update on actions taken regarding unhoused services coordination in Palo Alto including discussion and feedback on the Council -directed 2024 Palo Alto Gap Analysis Report (Dec. 9, 2024 Information Report'). 2. Receive an overview of local enforcement efforts and changes in state and federal law. 3. Receive an overview of the suggested community engagement next steps related to the development of an Implementation Plan Addressing Homelessness in Palo Alto, potentially including: 3.1. Consideration of a referral to the Human Relations Commission (HRC) to discuss and review the Gap Analysis Report with the intention for the HRC to recommend areas of priority to the Council; and 3.2. Engagement and outreach to develop an Implementation Plan to Address Homelessness in Palo Alto for Council consideration and approval. 4. Discuss items 1-3 above and have an initial discussion of 3 broad topics: housing production and homelessness prevention programs, homelessness support services, and enforcement efforts related to health and safety. Refer follow-up discussions to the Policy and Services Committee (if desired) and advance the engagement efforts described above. 1 Council Information Report, December 9, 2024 https://cityofpaloaIto.primegov.com/meetings/ItemWithTemplateType?id=6549&meetingTemplateType=2&comp iledMeetingDocumentld=12534 Item 3 Page 1 Packet Page 78 of 582 EXECUTIVE SUMMARY At the direction of Council in setting 2024 Priority Objectives, staff prepared a baseline conditions analysis of services related to housing and unhoused services in Palo Alto. Staff also prepared a report on the current unhoused population in Palo Alto. These reports were shared with the Council on Dec. 9, 2024 as an Information Report. As a next step beyond this baseline information, staff is requesting Council discussion of the report and current unhoused services coordination. Specifically, Council initial feedback is requested on 1) housing production and homelessness prevention programs, 2) homelessness support services, and 3) enforcement efforts related to health and safety. More specific questions to explore are the adequacy of homelessness prevention programs to reduce the number of people entering homelessness; the adequacy of housing production to increase the number of people exiting homelessness; what support and capacity the City can commit to unhoused support services; and what enforcement strategies would foster community health and safety. Staff will pursue a facilitated community engagement effort as a next step of information gathering to help inform the next Council discussion and subsequent next steps on this important topic. This information can be used in the creation of an implementation plan addressing homelessness in Palo Alto if such a strategy is desired as a next step to ensure balance among competing needs. BACKGROUND The City of Palo Alto has prioritized housing stability and services for the unhoused in alignment with regional efforts outlined in the Santa Clara County Community Plan to End Homelessness 2020-20252. In April 2021, City staff presented a report to the Council highlighting strategies for addressing homelessness, which served as a foundation for reviewing the County Plan and later pursuing a Homekey grant.3 On Aug. 9, 2021, the Council unanimously endorsed the Plan's goals, including reducing the annual inflow of homelessness, increasing supportive housing, expanding prevention services, doubling shelter capacity, and addressing racial inequities among the unhoused population. The three pillars of the County Plan are to 1) Address the root causes of homelessness; 2) Improve the quality of life for unsheltered individuals and create healthy neighborhoods for all; and 3) Expand homelessness prevention and housing programs. Since endorsing the County Plan, the City has taken significant steps to advance the Plan's housing and homelessness strategies. 2 Santa Clara County Community Plan to End Homelessness 2020-2025: https://housingtoolkit.sccgov.org/sites/g/files/exjcpb501/files/CommunityPlan_2020.pdf 3 Council Staff Report, April 5, 2021 https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2021/id-12133.pdf; Council Action Minutes, August 9, 2021 https://cityofpaloaIto.primegov.com/Public/Compiled Document?meetingTemplateld=3354&compileOutputType= 1 Item 3 Page 2 Packet Page 79 of 582 Key City initiatives include: • Expanding renter protections, • Piloting and later formalizing safe parking programs, • Securing State Homekey funds, and • Contributing to affordable housing projects (such as Wilton Court Apartments). In Dec. 2023,4 the Council identified a need to better understand the unhoused population in Palo Alto, subsequently elevated as a Council Priority Objective which included exploring safe parking expansion, "Initiate research to understand Palo Alto unhoused population and explore feasibility of expanding safe parking options on Geng Road." During the 2024 Council Retreat and subsequent budget process, Councilmembers indicated an interest in a direction and plan for addressing housing and services for the unhoused. This became a Council Priority Objective to "Conduct a gap analysis of housing and services for the unhoused in Palo Alto, considering Council direction, City activities and work, and County activities and work." The resulting gap analysis and related research were presented to Council as an Information Item on December 9, 20245 and are summarized in the Analysis section for Council consideration. An updated version of the Gap Analysis, revised to correct clerical errors in the final row of Table 2.3 (page 21) is included with this report as Attachment A. ANALYSIS Section 1: Status Update on Unhoused Services Coordination in Palo Alto Baseline Conditions The Dec. 9th information item provided much needed data on baseline conditions in Palo Alto, both in terms of the unhoused population and services for that population. Additionally, it clarified key terminology and roles to ensure an understanding of definitions and constraints. For example, people often suggest prioritizing Palo Altans for services or housing.6 However, most permanent supportive housing programs and services addressing homelessness leverage at least some federal funds from the U.S. Department of Housing and Urban Development (HUD). Federal funds require "coordinated entry" and a "Continuum of Care", which in turn, require things such as no -wrong -door services and prioritization based on vulnerability.' No - wrong -door means that individuals experiencing homelessness and in need of housing resources should be able to access those through a system that is low -barrier and provides a Council Meeting, December 4, 2023 https://www.youtube.com/watch?v=A-2CuhXvs84 Council Staff Report, December 9, 2024 https://cityofpaloaIto.primegov.com/meetings/ItemWithTemplateType?id=6666&meetingTemplateType=2&comp iledMeetingDocumentld=12534 6 Council Staff Report, January 13, 2025, https://cityofpaloaIto.primegov.com/meetings/ItemWithTemplateType?id=6678&meetingTemplateType=2&comp iledMeetingDocumentld=12763 This report describes procedures in place as of the writing of this report. It does not incorporate changes that may be made by the new federal administration. Item 3 Page 3 Packet Page 80 of 582 ITEM 3 multiple points of entry. This limits the feasibility of geographic preferences for permanent housing programs, though individual client preferences are taken into account whenever possible. Santa Clara County's coordinated entry system provides a multitude of access points for individuals and families to seek services. The coordinated entry system determines eligibility for programs through an assessment of an individual or household's vulnerability, based on factors such as disability, experience of gender -based violence, mental health challenges, and other vulnerabilities. Permanent supportive housing and rapid rehousing programs funded using HUD Continuum of Care funding must accept eligible individuals and households from the coordinated entry system regardless of their geographic affiliation within Santa Clara County. However, matchmakers within the Continuum of Care work with eligible households to review available housing options and take their geographic preferences into account whenever possible in determining among possible housing placements. The shelter referral system operates somewhat differently from coordinated entry for permanent housing programs. Shelter referrals, including for the Palo Alto Homekey site, would go through the County's centralized Here4You call center, then would be referred to sites based on city/area affiliation (e.g., Palo Alto) and household type (e.g., single adult, family with minor children). When working with callers, the Here4You team first attempts to address a caller's housing crisis using housing problem solving techniques and services prior to shelter placement. If housing problem solving does not resolve the housing crisis, the caller will be placed on the shelter queue. For the Palo Alto Homekey site, priority would be given to those connected to Palo Alto, followed by other North County cities. Here4You outreach staff will be available to support street outreach to unhoused Palo Alto residents to get them onto the waitlist even prior to the opening of the site. Another example relates to definitions. For example, HUD defines unsheltered homelessness as someone whose primary nighttime location is a public or private place not designated for, or ordinarily used as, a regular sleeping accommodation for people (e.g., a car, public park, bus station, campground). HUD does not consider someone to be homeless if they are "couch surfing", sleeping in crowded situations, or temporarily staying with others due to a loss of housing/hardship—all considered common forms of housing instability among transitional -aged youth ages 18-24.8 Looking at Palo Alto baseline conditions, it is important to also understand the regional and national context. In a recent federal report, data indicates that nationally, homelessness on a single night in 2024 was 771,480 people. This is the highest number ever recorded and an 18% increase over the prior year.9 In contrast to the high national increase, California had a more modest increase of about three percent (3% or 187,084 people), which is also the highest 8 The U.S. Department of Housing and Urban Development (HUD), The 2024 Annual Homelessness Assessment Report to Congress, https://www.huduser.gov/portal/sites/default/files/pdf/2024-AHAR-Part-1.pdf 9 Ibid. Item 3 Page 4 Packet Page 81 of 582 ITEM 3 historical number recorded for the state. The most recent Santa Clara County count in January 2023 was a one percent (1%) increase (9,903 people) over the prior year countywide, yet a 25% decrease (206 people) for Palo Alto.10 The next count in Palo Alto occurred January 23, 2025. Within this national context, while the City has made significant strides in addressing homelessness and housing instability, it remains a complex challenge locally. The December "Understanding the Unhoused" report highlights key data about individuals experiencing homelessness in Palo Alto. For instance, a higher percentage of people experiencing homelessness in Palo Alto (91%) are unsheltered compared to the countywide average (75%), with a significant portion (88%) living in vehicles. This report complements the Gap Analysis by providing detailed demographic, housing, and service utilization data, serving as a foundation for identifying opportunities and service gaps. Key Facts from Gap Analysis Report The Gap Analysis identifies a mismatch between demand and availability of certain programs and interventions. For example, in 2023 during a single -day count of unhoused vehicle dwellers in Palo Alto, there were 181 individuals in 102 vehicles, including 69 RVs. However, there are only 40 safe parking spots in Palo Alto. Of those, 18 are restricted to passenger vehicles and overnight parking, with only 22 spaces for RVs and 24 -hour parking.11 While there is frequently excess capacity at the overnight, passenger vehicle, congregational sites, there has been a waiting list for 24 -hour RV parking. Another example is related to people who could benefit from affordable housing and the amount of affordable housing available. In terms of affordable housing with supports in place explicitly for people experiencing homelessness: .. ... Service Needs Rapid Rehousing Permanent Supportive Housing Forthcoming (entitled) Units 32 0 Palo Alto Unhoused Residents Assessed to Need Various Services 115 120 10 HUD Exchange, CoC Homeless Populations and Subpopulations Reports, httos://www.hudexchanL,e.info/r)roerams/coc/coc-homeless-oor)ulations-and-suboor)ulations reports/?filter Year=2024&filter Scope=CoC&filter State=CA&filter CoC=CA-500&program=CoC&group=PopSub. Santa Clara County 2023 PIT Report, httDs://Dublic.tableau.com/views/PIT2023v2/Exec?:showVizHome=no&amr:ami:embed=true&amo:. 11 In 2023, this number was 16 passenger vehicle spots and 12 RV spots. 12 See Attachment A "Housing and Unhoused Services Gap Analysis in Palo Alto", updated January 8, 2025, page 18. Item 3 Page 5 Packet Page 82 of 582 I19�u[i? There are also current Palo Altans who are cost -burdened —or spend more than 30% of their income on housing costs —many of whom would be eligible for an affordable unit if one were available: I;n ... .. Extremely Very Low Median Above Median Income Level Low Income Income Low Income Income Income Entitled Units 46 96 49 60 331 Proposed 3 22 408 51 1,973 Units (not yet entitled) Cost- 1,460 865 915 550 635 Burdened Renters14 Structure of Gap Analysis Report The Gap Analysis report, which aligns with the Santa Clara County Community Plan to End Homelessness, organizes its findings into three core categories: • Addressing the root causes of homelessness throueh system and oolicv chances: Current renter protections and anti -displacement provisions exist but lack proactive enforcement mechanisms. While there are ongoing efforts to increase affordable housing, additional strategies and internal organizational alignment could enhance the City's capacity to meet local needs. • lmorovine the aualitv of life for unsheltered individuals and creatine healthy neighborhoods for all: Despite available services, barriers such as shelter capacity, safety concerns, and transportation limitations prevent some individuals from accessing resources. • Expanding homelessness prevention and housing programs to meet demand: While the City has over 2,300 affordable housing units, most are occupied and there are long (in some cases, closed) waitlists, and the pipeline for new units remains insufficient. For example, there are no permanent supportive housing units in development, despite significant demand. 13 See Attachment A "Housing and Unhoused Services Gap Analysis in Palo Alto", updated January 8, 2025, page 21. 14 This row's data was updated from the December 2024 "Housing and Unhoused Services Gap Analysis in Palo Alto". It now includes updated data on cost burdened renters, as well as corrects the cost -burdened renter data under "Above Median Income" which previously had shown the total number of cost -burdened renters instead of the subset which are "Above Median Income". Item 3 Page 6 Packet Page 83 of 582 ITEM 3 Gaps and Opportunities Several gaps and opportunities for improvement were identified in the two reports, and in subsequent discussions among staff and community stakeholders 1s: • Affordable Housing Pipeline: While the pipeline for affordable housing is encouraging, it remains insufficient relative to demand. For example, in Palo Alto there are no permanent supportive housing units in development to address the needs of over 120 individuals currently waiting. • Homelessness Prevention: There is a countywide homelessness prevention program, however the need for additional funding and outreach limits the City's ability to reduce any inflow of individuals into homelessness. • Internal Coordination and Resource Allocation: The City's current structure for addressing homelessness spans multiple departments, with no unified plan. This makes it challenging to coordinate efforts effectively, allocate resources efficiently, and act on Council direction to prioritize focus areas. • Enforcement and Public Concerns: Community members have expressed confusion about where to report issues related to encampments or RV dwellers and how the City will respond once issues are reported. A clear plan coupled with public education on how various concerns can be reported and addressed could help bridge this gap. • Case Management: Limited resources for case management present a critical barrier to supporting unhoused individuals effectively. High caseloads and ongoing demand for permanent supportive housing strain the system and limit the capacity to deliver meaningful assistance. Addressing these gaps and opportunities with a clear policy direction will enable Palo Alto to better meet the needs of unhoused residents while improving outcomes for the broader community. This is further discussed in the Next Steps subsection of this staff report. Section 2: Enforcement: Law Changes and Current Efforts In addition to the above, enforcement of conduct laws, especially regarding health and safety matters, is one part of the City's response to address the health and safety impacts related to homelessness while mitigating impacts on the wider community. The City recognizes the complexity of enforcing laws while ensuring compassionate outreach to individuals experiencing homelessness. Palo Alto employs a nuanced approach that balances public health, safety, and cleanliness with respect for the dignity and rights of unhoused individuals. 15 The RV Dwellers Group, consisting of service providers, City staff, a representative of Stanford University, members of the faith -based community, a Councilmember, and a Human Relations Commission member, met in December and discussed the two reports. Item 3 Page 7 Packet Page 84 of 582 ITEM 3 A. New Developments in 2024 In 2024, there were two legal developments regarding the enforcement of criminal laws regulating conduct sometimes engaged in by unhoused persons, particularly camping on public property. Grants Pass v. Johnson. First, in Jun. 2024 the U.S. Supreme Court issued a decision in the case of City of Grants Pass v. Johnson.16 In Grants Pass the Court held that the enforcement of laws prohibiting camping17 on public property does not constitute "cruel and unusual punishment" prohibited by the Eighth Amendment. The Grants Pass decision reversed the prior rule in the Ninth Circuit, established in 2018 in the case of Martin v. City of Boise.18 IIn Martin the Ninth Circuit had held that cities may not constitutionally enforce "no camping" laws when a city's homeless population exceeds available shelter beds. The Circuit reasoned that homelessness is an involuntary status if alternative shelter is not available, and that criminal punishment under those circumstances is "cruel and unusual" in violation of the Eight Amendment of the U.S. Constitution. Because most cities and counties were unable to show adequate shelter beds for everyone unhoused in the jurisdiction, under Martin, most were effectively barred from issuing criminal citations for camping in public places. Between 2018 when Martin was decided and June 2024 when it was overruled by Grants Pass, federal courts throughout the Ninth Circuit enjoined cities and counties from enforcing many local criminal laws, particularly relating to clearing large encampments. The Grants Pass decision removed this constraint, allowing cities to pursue enforcement of their laws against public camping regardless of shelter availability without risk of a legal challenge under the Eighth Amendment. An easy infographic on the Grants Pass decision can be found here: https://bcsh.ca.gov/calich/documents/grants pass fact sheet.pdf. Governor's Executive Order. One month after the Grants Pass decision was announced, Governor Newsom issued an Executive Order19 instructing state agencies under the Governor's authority to begin taking action to remove encampments on state property, prioritizing those that present an imminent threat to life, health, safety or infrastructure. The Executive Order describes procedures for advance notice to persons living in encampments, the importance of offering shelter and services, and processes for retaining removed belongings. The Order was mandatory for agencies under the Governor's control (this does not include Palo Alto). The Order also included non -mandatory language encouraging local government entities, including 16 https://www.supremecourt.gov/opinions/23pdf/23-175 19m2.pdf 17 Camping is not defined in federal law. Each local jurisdiction that regulates camping defines the conduct that is prohibited. To take one example, the local law at issue in the Grants Pass case defined camping as setting up or remaining in or at a campsite, which is any place where bedding, sleeping bags, or other material used for bedding purposes or any stove or fire is placed for the purpose of maintaining a temporary place to live. 18 https://cdn.ca9.uscourts.gov/datastore/opinions/2018/09/04/15-35845.pdf. 19 https://www.gov.ca.gov/wp-content/uploads/2024/07/2024-Encampments-EO-7-24.pdf Item 3 Page 8 Packet Page 85 of 582 cities like Palo Alto, to adopt similar policies and use their resources to remove encampments under their jurisdiction that present an imminent threat to life, safety, or infrastructure. Challenges that Remain after Grants Pass and the Governor's Executive Order. The Grants Pass decision acknowledges that the root causes of homelessness in the U.S. are multi -faceted and complex, and that local officials need to use a variety of tools in pursuit of solutions. While Grants Pass removed a significant constraint on cities taking enforcement action when no - camping and other laws are broken by unhoused persons, the decision does not address or resolve many other challenges that impede fundamental change. As discussed in other parts of this report, these challenges include lack of affordable housing, limited availability of supportive services, and insufficient shelter beds or shelter options that are incongruous to individuals' needs. In addition, enforcement activities are constrained by significant resource limitations throughout the criminal justice system (including local police, county jail facilities, prosecutors, public defenders, superior court judges, and probation officers). Finally, the Grants Pass decision does not mean that state and local criminal laws cannot be further challenged under a variety of statutory and constitutional provisions. B. The Criminal Justice System and the Unhoused: Where We Are Now State and local laws prohibit a variety of conduct that can have negative impacts on the health and safety of others, impair property rights, or compromise public order. People often mistakenly associate unlawful behaviors they observe with homelessness, even though the behavior itself —not the person's housing status —is the crime or nuisance. This distinction highlights the importance of addressing two related but separate issues: homelessness (e.g., prevention, services, housing) and crime or nuisance. With limited exceptions (e.g., special laws that only apply to minors), state and local criminal laws apply to conduct, regardless of the subject's personal characteristics or housing status. This section discusses various state and local laws that apply to everyone who engages in the prohibited conduct, regardless of whether they are housed or unhoused. The Palo Alto Police Department staffs a Special Problems Detail (SPD) made up of officers assigned to work on a variety of issues, including but not limited to quality of life issues, collaborating with community partners, the City's outreach team, and City departments, traffic enforcement, and any other critical issues affecting our community such as crime trends or major crimes. The SPD and other officers engage in enforcement action on a regular basis. In addition, City Code Enforcement and Public Works personnel issue administrative citations, manage clean-ups, and abate nuisances. Item 3 Page 9 Packet Page 86 of 582 ITEM 3 Relevant state and local laws include, for example: • Closing parks and community centers between 10:30 pm and sunrise • Prohibiting outdoor fires • Barring open alcohol containers in public places • Prohibiting urination or defecation in a public place • Prohibiting public nuisances • Prohibiting vehicles from being abandoned or stored on City streets (defined as failing to move at least %2 mile within a 72 -hour period) While the following behaviors may sometimes generate concern, they do not, by themselves, violate federal, state or local law: • Sleeping on the sidewalk, provided public access is not blocked • Sleeping in a vehicle • Sleeping outside or in a tent in a park between sunrise and 10:30pm • Carrying around large amounts of personal property in bags or carts • Hanging around on sidewalks or public benches • Being present in a public parking garage that is otherwise open to the public • Asking others for money • Being without a home or shelter How enforcement works. The SPD and other police officers respond to complaints and proactively patrol sensitive areas. Officers are trained in communicating with persons with mental health and other disabilities and utilize assistance from non -enforcement community partners to gain compliance with the law when appropriate and possible. Officers engage individuals displaying behavior that violates state or local law, with a goal of gaining compliance with legal requirements. Officers make contact, educate individuals on what the law requires, seek voluntary compliance, and offer resources. Where needed and appropriate, officers will take applicable enforcement action with a citation or other necessary action. To issue a criminal citation for a misdemeanor offense, officers must either: (a) directly observe violations of state or local law, or (b) identify a complaining victim or eyewitness to the conduct who is willing to testify on the record. Where serious or violent conduct is involved, officers will make a custodial arrest, transporting the individual to the County Jail in San Jose. At the jail, County Sheriff personnel make decisions regarding processing and detention, in conjunction with the District Attorney and Superior Court. Commonly, individuals delivered to the jail are processed and released within several hours or a few days, pending further action by the District Attorney and Superior Court. Once released, the individuals are free to return to their community if desired. Item 3 Page 10 Packet Page 87 of 582 ITEM 3 For non-violent misdemeanors, which are the great majority of matters in Palo Alto, officers issue the subject a criminal citation and do not transport to the jail. The citation requires the subject to appear in court at a specified time, subject to a further decision by the District Attorney's Office regarding charging and calendaring the matter in court. For non -critical offenses, the District Attorney's Office typically places the matter on the Superior Court calendar when a pattern of repeated citations demonstrates a continuing problem. When a pattern of citations results in a court appearance, the most common outcome is a period of community service. Where applicable, the court may also order substance abuse or behavioral treatment (if applicable), or fines. Custodial detention is rare. It is common for cited individuals to remain in or return to the locations and communities that they consider their home. Returning to the Community. Some residents and business owners have expressed frustration at the visible signs of homelessness around the city, such as individuals spending long periods of time in parks, libraries, public garages, and sidewalks, and individuals displaying worrisome behaviors. While some concerning conduct violates state or local law and can be cited, enforcement does not often fully resolve the issue. For all these reasons and those shared in the Gap Analysis, enforcement should not be thought of as a comprehensive solution to homelessness or a way to resolve all community impacts from large numbers of individuals living without adequate housing. At best, enforcement functions as a tool to mitigate health and safety concerns and reduce behaviors that have a negative impact on others. However, enforcement may not be the most effective or cost- efficient tool to mitigate such impacts, even where it is a legally available option. Enforcement is most effective when used in conjunction with other strategies, such as access to appropriate shelter, housing, and services. Vehicles and Parking. The state legislature has exerted preemptive authority over vehicle movement and parking regulations. Local jurisdictions may regulate parking to the extent authorized by the state. Enforcement of parking restrictions or other conduct related to vehicles raises a number of special issues, including, for example, a requirement to provide adequate notice through comprehensive posting or individualized notice, and in some circumstances constitutional limits on towing. The Police Department conducts periodic monitoring for parking compliance and responds to complaints, scaled to available resources. One common complaint involves cars, trailers or RVs that are parked without moving for an extended period of time. State law allows cities to adopt a local ordinance authorizing removal of a vehicle that has been parked in the same place for more than 72 hours. Palo Alto has adopted such an ordinance. Prior to removing a vehicle, the ordinance requires City staff to affix a notice to the vehicle advising that the vehicle will be removed for violation of the ordinance after 72 hours unless it is moved at least five tenths of a mile. If the vehicle is moved, there is nothing in the law that prevents the owner from re -parking in the same location. Item 3 Page 11 Packet Page 88 of 582 The public has also reported concerns about use of generators, storage of belongings outside of the vehicle, and dumping of waste. Local law has requirements related to all of these issues, and City staff from multiple departments respond, as resources allow, and work with vehicle owners to achieve compliance. For example, for cleanup efforts when personal belongings or encampments accumulate in public spaces, the City provides advance notice and ensures individuals have opportunities to gather and relocate their belongings before clearing the area. With respect to parking and vehicles, staff has identified several areas where additional local ordinances would enhance staff's ability to address conduct having a negative impact on others. These include, for example, prohibiting the "renting" of public parking spaces and regulating use of parking spaces for trailers or other non -vehicles. A detailed discussion of parking and vehicles is beyond the scope of this item. Staff recommends referring further work on this topic to the Policy and Services Committee. Property. Special rules apply to the handling of property. In general, seizure of property without consent requires a judicial warrant. While there is an exception for abandoned property, courts stringently review the facts and circumstances to determine whether property is truly abandoned as opposed to merely unattended. Accordingly, City staff post notice before taking control of property that is not trash and not clearly abandoned. Further, with the exception of material that is clearly trash, seized property must be retained for a period of time to allow the owner to retrieve it. At this time, Palo Alto does not have a facility or staffing to handle storage of seized property (with the limited exception of small valuable property held by the Police Department under appropriate circumstances). Cities that store seized property invest considerable resources in procuring a storage location and needed equipment, in addition to personnel, procedures, and training required to constitutionally handle this type of activity. C. What the Public Can Do to Support Effective Enforcement The Police Department encourages the public to promptly report suspicious behavior or criminal activity to our 24 -hour dispatch center at (650) 329-2413, or 9-1-1 if it is an emergency. To request cleanup of garbage or other materials left in the public right-of-way (streets and sidewalks), a park, or a City parking garage, the Palo Alto 311 application can be used.20 A request can also be made by calling the Public Works Department at 650-496-6974. 20 https://www.cityofpaloalto.org/Residents/Services/Report-an-Issue Item 3 Page 12 Packet Page 89 of 582 ITEM 3 Section 3: Engagement Next Steps Description The reports collectively emphasize the importance of developing a cohesive and targeted strategy to address homelessness in Palo Alto. By offering a comprehensive overview of baseline conditions, enforcement practices, and areas for improvement, they provide a foundation for advancing Council discussions and engaging stakeholders to craft a tailored plan for the City. An implementation plan is essential to determine whether strategies should prioritize incentives and supportive measures ("carrots"), enforcement and regulatory approaches ("sticks"), or a balanced combination of both. Without this clarity, efforts may lack focus, and resources may not be deployed in a manner that reflects Council priorities and community expectations. In order to develop a policy direction it will be important to take the pulse of the community through meaningful, inclusive engagement. While the Council often receives communications from residents and business owners who are frustrated, staff also receives communications from residents reaching out to learn how to help people experiencing homelessness or to ask for help to stay housed or find safe shelter. These communications are less frequently items sent directly or "escalated" up to Council. Staff proposes initiating engagement with key stakeholders, including Councilmembers, Palo Alto Unified School District, businesses, the downtown community, faith -based organizations, Stanford University, the medical community, community -based organizations/service providers, and people with lived experience of homelessness. These groups are highly motivated to address homelessness due to their roles in the community, the impacts they experience, and/or their specific expertise. A neutral facilitator with relevant expertise should be engaged to help ensure thoughtful and balanced discussions that build trust and result in an implementation plan that reflects the values and priorities of the community. Without this inclusive engagement, there may be reduced community input and a less responsive implementation plan, which could erode trust, reduce buy -in from the community, and potentially require a more costly redesign later as unforeseen challenges and community concerns arise. Similarly, postponing engagement and a plan could lead to missed opportunities and efficiencies. Acting now allows engagement to build on the relationships initiated during the Gap Analysis research and to draw from recent data. However, postponement may require re-establishing relationships and/or conducting new or additional research and data collection. Staff also recommends that Council refer the Gap Analysis and related staff report to the HRC for conversation and input on which themes and strategies should be prioritized. Given the HRC's charge to promote the just and fair treatment of all people, particularly vulnerable populations, their perspective will be vital in ensuring that the Implementation Plan is inclusive and equitable. The Commission's work in addressing disparities related to housing, employment, and access to community resources positions it as an essential partner in Item 3 Page 13 Packet Page 90 of 582 ITEM 3 identifying approaches that consider the full range of needs and potential barriers for marginalized groups within Palo Alto. Ultimately, staff will bring an implementation plan back to Council stemming from the Council and HRC discussions and co -created by stakeholders during engagement. Section 4: Discussion Staff seeks Council initial feedback about 3 broad topics: housing production and homelessness prevention programs, homelessness support services, and enforcement efforts related to health and safety. Council input will help staff to refine and prioritize the focus areas for further development. Specifically, staff seeks guidance on any themes or considerations Council would like prioritized during the comprehensive engagement described above. As staff prepares for this engagement, Council feedback can be on the broad topics listed above or on these specific questions: 1) if the homelessness prevention programs are adequate enough to reduce the number of people entering into homelessness, 2) the adequacy of housing production to increase the number of people exiting homelessness; 3) what support and capacity the City can commit to unhoused services, and 4) what enforcement strategies the City would like to emphasize related to community health and safety. With this being such a complex topic and a vast amount of information in this report, Council can also choose to bring back further discussion to the full Council or Policy and Services Committee on any of the topics within this report. FISCAL/RESOURCE IMPACT The recommended next steps require new funding. Based on preliminary research, a budget of not -to -exceed $50,000 is proposed for targeted stakeholder engagement and developing an implementation plan, anticipated to take three to six months. This would be drawn from the existing operating budget. Staff would request informal bids from qualified firms and individuals with relevant expertise (i.e., community engagement, facilitation, projects relating to homelessness and/or housing stability). Additional efforts in any of these areas are likely to require additional resources. In some cases significant resources may be needed. Consideration of resource requirements and prioritization must be a part of any implementation plan. STAKEHOLDER ENGAGEMENT Staff consulted with colleagues and professionals with experience locally and regionally. Additionally, the "RV Dwellers Group" of service providers, a representative of Stanford University, members of the faith -based community, people from the faith -based community, City staff, a Councilmember, and a Human Relations Commission member, met in December and discussed the two reports. Item 3 Page 14 Packet Page 91 of 582 ITEM 3 ENVIRONMENTAL REVIEW Not a project. ATTACHMENTS Attachment A: Housing and Unhoused Analysis — Updated January 8, 2025 APPROVED BY: Ed Shikada, City Manager Item 3 Page 15 Packet Page 92 of 582 ITEM 3 Attachment A Updated January 8, 2025 Item 3 Page 16 Packet Page 93 of 582 ITEM 3 Attachment A Table of Contents 1. Executive Summary.................................................................................Pg. 2 2. Section 1: Needs.....................................................................................Pg. 4 3. Section 2: Existing Programs and Services...................................................Pg. 9 4. Section 3: Literature Review and Relevant Programs and Services from Other Municipalities.........................................................................................Pg. 22 5. Section 4: Summary of Gaps.....................................................................Pg. 32 6. Appendix A: Income Categories and Definitions........................................Pg. 33 7. Appendix B: Definitions of Terms...............................................................Pg. 34 8. Appendix C: Programs and Services in Other Municipalities (not inclusive of existing Palo Alto Programs).................................................................................Pg. 36 1 Item 3 Page 17 Packet Page 94 of 582 ITEM 3 Attachment A Executive Summary As part of the City Council's 2024 Council Priorities and annual objectives process, the Council directed staff to conduct a gap analysis relating to the City's needs on Housing and Unhoused Services. The following report aims to explore the City's current needs relating to housing and unhoused services, as well as its services and programs, to outline gaps, and to provide information on potential actions to address the gaps. Following interviews with dozens of stakeholders ( including City staff, developers, partner agencies, and non-profit providers), reviews of relevant social science research, and research on the programs and services of other municipalities, the analysis made the following conclusions relevant to Palo Alto's needs: 1) Congregate shelter is not accessible and/or appropriate for many unhoused community members. 2) Income -restricted affordable housing is the best fit for many seeking housing, but there is not readily available affordable housing for many who are seeking it. 3) Building affordable units is expensive, but cities can use planning programs to incentivize more affordable units (alongside or instead of funding programs). 4) Enforcement is unlikely to be a long-term solution. 5) An overarching strategy and team is often needed to address the need. Ultimately, Palo Alto has a large number of services to help residents facing housing crises get assistance, but also faces a number of gaps - most notably, in the availability of temporary shelter and affordable units, across all income levels, but particularly with regards to affordable units for unhoused households. For example, Palo Alto has 120 unhoused community members who have been assessed to need "Permanent Supportive Housing," which is a type of affordable housing meant to provide support to unhoused households with disabling conditions. But, there are no such units entitled in Palo Alto's housing pipeline. Relatedly, 154 Palo Altans became homeless last year, but there are only 286 affordable housing units entitled to be built in the next couple of years - which means homelessness will continue to increase, unless more Palo Altans are prevented from becoming homeless or more affordable units are built. 2 Item 3 Page 18 Packet Page 95 of 582 ITEM 3 Attachment A Palo Alto has a number of opportunities to build on its existing programs and services to further address the needs of those facing housing crises in the City. While the need for housing -related programs and services is high, it is feasible to put together a number of strategies to make meaningful change, prevent homelessness and get Palo Altans into stable, affordable housing. About Good City Good City has a long track record of serving public and private sector clients. Our Northern California based history uniquely positions the company to provide technical services tailored to the local area. Our key services include local government staffing, current planning, policy planning, economic development, and city manager's office services. About Micaela Hellman-Tincher, Good City Housing Specialist Micaela has extensive experience in local government - and in particular North Santa Clara County - largely focused on housing and social services. Additionally, she grew up in Palo Alto, and currently lives in Palo Alto with her husband, daughter, and mother. 3 Item 3 Page 19 Packet Page 96 of 582 ITEM 3 Attachment A 1. Needs Palo Altans face a diverse array of needs relating to housing. Palo Altans facing housing crises include homeowners, renters, people living in cars and RVs, people living outside, people living in shelters, people "couch surfing," seniors, people with disabilities, families, individual adults, and transitional -aged youth. The following section aims to illustrate the particular characteristics, and the particular magnitude, of those facing housing needs in Palo Alto, in order to better determine gaps in the existing continuum of interventions and services. On an issue as large as housing, there are many ways to consider need. Should the City only consider solutions for those who have already lost their housing, or look more broadly to those who are struggling to cover their current housing costs? Is it wise to focus on the City's current population, or to look to the future, and estimate needs based on those who might seek to work or live in the City in the future as well? The report below aims, when feasible, to give a range of data points to consider. When considering ways to address needs, municipalities sometimes come up with a definable goal - for example, no unsheltered families, shelter for anyone who desires it, or a certain number of housing units built in a five-year period. This report aims to give the City an understanding of existing needs and service gaps with which to consider these types of goals. Unhoused Palo Altans The most critical need relates to those Palo Altans who are already unhoused. The unhoused population in Palo Alto is also diverse in its needs. For example, of the 269 Palo Alto -affiliated households assessed via the County's "VI-SPDAT" (see footnote) assessment between July 1, 2023 - June 30, 2024, nearly half, 120, need Permanent Supportive Housing (PSH).' Permanent Supportive Housing is housing that provides subsidies, as well as case management and supportive services. Permanent Supportive A note on data: The two main ways to measure the unhoused population are via the "Point -In -Time" Count, and via the data in the County's Homelessness Information Management System (HMIS). This report relies on HMIS data, mainly because it includes data on responses to the VI-SPDAT (Vulnerability Index - Service Prioritization Decision Assistance Tool), which assesses the types of housing services best suited for each unhoused person based on their vulnerability and personal history. Both are useful ways of understanding the unhoused population. 4 Item 3 Page 20 Packet Page 97 of 582 ITEM 3 Attachment A Housing is for households who face a disabling condition which affects their ability to get and maintain housing. Forty-two unhoused community members were members of a family with children. Another significant subset of the unhoused population in Palo Alto are those over age 65, of which there are 35. Table 1.1 - Palo Alto Unhoused Population2 Unhoused Unhoused Unhoused Unhoused Population Population Needing Households with a Population Over PSH Housing Population with Age 65 Children 269 120 42 35 Of note, unhoused residents in Palo Alto were more likely to sleep in a car, or to couch surf, than other unhoused people countywide. Over 70 Palo Alto unhoused individuals sleep outdoors, but a lower proportion of unhoused Palo Altans sleep outside compared with the unhoused population county -wide. In interviews with service providers, City staff found that many unhoused Palo Altans originally come from Palo Alto, or fell on hard times after moving to Palo Alto for work. Still others have children in the local school district. This aligns with Countywide data that 85% of unhoused individuals in Santa Clara County were residents of Santa Clara County when they became homeless, and 54% had been residents for over 10 years.3 As in other parts of the County, unhoused community members are disproportionately Black/African American or Latinx/Hispanic. In August of 2024, 32% of the City's unhoused population was Latinx, while 7% of Palo Altans are Latinx/Hispanic, and 26% of the City's unhoused population was Black/African American, while 2% of Palo Altans are Black.4 Destination: Home reports, "national research has shown that people of color are dramatically more likely than their white counterparts to become homeless in 2 Santa Clara County VI-SPDAT responses among "Palo Alto affiliated" households, July 1, 2023 - June 30, 2024.. 3 "Santa Clara County Point In Time Report, 2023." https://osh.sccgov.org/continuum-care/reports-and-publications/santa-clara-county-homel ess-census-and-survey-reports-point 4 2020 Census Data and August Community Housing Queue Data, Santa Clara County. 5 Item 3 Page 21 Packet Page 98 of 582 ITEM 3 Attachment A America, and that the legacy of historical and contemporary structural racism is at the root of who becomes homeless. ,5 Historical discrimination, including housing discrimination based on raceb„ and current barriers, such as difficulty obtaining employment and paperwork (for immigrant households), remain relevant in Palo Alto's housing crisis. Those At Risk of Homelessness When trying to assess the need, the next most critical group is those who are at risk of becoming homeless. There are a number of ways to estimate the size of this group. One way to understand who is at risk of becoming homeless is by looking at the "newly unhoused" in Palo Alto each year. From July 1, 2023 to June 30, 2024, 154 unhoused Palo Altans were entered into the County Homeless Management Information System.' While an imperfect number, as it doesn't include those who were perhaps unhoused earlier, but not known to outreach teams, it helps to illustrate the number of Palo Altans who go from housing to homelessness in a given year, and who would benefit from help remaining housed. Table 1.2 describes the number of Palo Altans who applied for homelessness prevention funds through the County's Homelessness Prevention System last fiscal year, and in July and August, 2024. Per the County, "The Homelessness Prevention System provides assistance to low-income families or individuals who are at risk of losing their housing, including: temporary financial assistance, legal support, case management and other services." This demonstrates another way of understanding the housing needs of Palo Altans who are currently housed, but are at a risk of becoming homeless. The County's Homelessness Prevention System prioritizes funds based on a needs assessment, so the numbers below do not necessarily represent every Palo Alto household who may have needed these funds — rather, it represents those that qualified given the available funds. 5 "Race and Homelessness in Santa Clara County." Destination: Home. https://destinationhomesv.org/race-homelessness-in-santa-clara-county/ 6 Palo Alto's 2023 Assessment of Fair Housing details some of the City's experience with historical discrimination regarding housing. Santa Clara County Vl-SPDAT responses among "Palo Alto affiliated" households, July 1, 2023 - June 30, 2024. 6 Item 3 Page 22 Packet Page 99 of 582 ITEM 3 Attachment A Table 1.2 - Palo Alto Households Enrolled in Santa Clara County Homelessness Prevention System In Recent Years Time Period Number of Unduplicated Households Enrolled Total Financial Assistance Provided July 2023 - June 2024 1 1 1 $488,658 July and August 2024 46 $92,967 The broadest way of understanding Palo Altans at risk of becoming homeless is by looking at renters who spend more than 30% of their income on housing costs — a level that is defined as "cost burdened," by the U.S. Department of Housing and Urban Development.8 Households with a housing burden greater than 30% struggle to afford to live in Palo Alto, and may be sacrificing other basic needs, such as food and medical attention, in order to cover their housing costs. A single financial crisis could send the family into homelessness. Of 11,470 renters in Palo Alto, 4,425 spend more than 30% of their income on housing costs. As shown in Table 1.3, households facing a housing cost burden span income levels. Of note, of the 4,425 cost -burdened renters in Palo Alto, over 2,000 earn "very low" or "extremely low" incomes. Spending over 30% of a very low or extremely low income on housing costs does not leave significant additional funds to cover basic needs. In real terms, this would mean a family of four would be spending over 30% of their $55,300 annual household income on housing, leaving only $3,225 monthly to cover medical expenses, food, child care, and other basic needs. Appendix A defines the income levels associated with Extremely Low Income (ELI), Very Low Income (VLI), Low Income (LI), and Median Income (MI), per State and Federal income limits. 8 Department of Housing and Urban Development Comprehensive Housing Affordability Strategy Data, 2017-2021 American Community Survey data. 7 Item 3 Page 23 Packet Page 100 of 582 ITEM 3 Attachment A Table 1.3 - Cost Burdened Renters by Income Level9 ELI Renters with VII Renters with LI Renters with MI Renters with Total Renters Housing Cost Housing Cost Housing Cost Housing Cost with Housing Burden Greater Burden Greater Burden Greater Burden Greater Cost Burden Than 30% Than 30% Than 30% Than 30% Greater Than 30% (includes households earning above MI) 1,460 865 915 550 4,425 9 Department of Housing and Urban Development Comprehensive Housing Affordability Strategy Data, 2017-2021 American Community Survey data. 8 Item 3 Page 24 Packet Page 101 of 582 ITEM 3 Attachment A 2. Existing Programs and Services While the need is great, several existing programs and services striving to support Palo Altans facing housing challenges. There are a number of entities involved in addressing the housing needs of Palo Altans. Besides the City of Palo Alto, involved entities include: - Santa Clara County. Santa Clara County coordinates the area's Continuum of Care, or CoC. As the CoC, the County receives U.S. Department of Housing and Urban Development (HUD) funds, which it subsequently distributes to service providers or uses to implement programs county -wide. These funds generally amount to $39 million annually. The County provides an approximately $10 million local match. The County also applies for other funding programs to implement services, which include a continuum from homelessness prevention to shelter to permanent housing. Many Palo Altans receive services via this continuum. Sometimes they receive these services in Palo Alto - for example, Palo Altans can access homelessness prevention funds via LifeMoves at the Opportunity Services Center. Sometimes they receive these services outside of Palo Alto, for example when they move into permanent supportive housing units in other cities in the County. A condition of HUD's CoC funding is that the County must implement a "coordinated entry" system, a homeless management information system (HMIS), no -wrong -door services, and a prioritization system based on the vulnerability of various groups. This means that when an unhoused Palo Altan seeks services via the CoC, they are entered into a county -wide system. When they are seeking shelter, they are routed based on a first -come first -served basis, but also based on their needs (for example, North County residents are given preferred access to North County shelters). When they are seeking housing, they are given an assessment, known as the VI-SPDAT (Vulnerability Index - Service Prioritization Decision Assistance Tool), to determine which housing they might qualify for, and to place them on a prioritization queue based on their vulnerability. It is feasible for cities to carve out priority programs for their residents by providing funding that replaces HUD funds for specific programs - for example, providing City funds 9 Item 3 Page 25 Packet Page 102 of 582 ITEM 3 Attachment A to cover case management for specific permanent supportive housing units for Palo Alto residents. Much of the County's work is based on the 2020-2025 Community Plan to End Homelessness, which is focused on three strategies: 1) Address the root causes of homelessness through system and policy change 2) Improve quality of life for unsheltered individuals and create healthy neighborhoods for all 3) Expand homelessness prevention and housing programs to meet the need State of California. The State plays a role in enforcing State laws relating to housing development. Most specifically, the State's Housing Element process will monitor the City's recently certified Housing Element. State laws, such as SB 330 - the Housing Crisis Act of 2019 - place requirements on cities to uphold renter protections and to comply with no net loss requirements relating to housing redevelopment. The State also provides annual funding allocations for affordable housing and homelessness services, via a number of grant programs that are both increasing in number and in competitiveness. The City and housing projects in the City have both earned State funding, including the City's upcoming Homekey shelter project. Non-profit partners. Much of the "on the ground" service provision is provided by non -profits. These non -profits provide significant expertise and build community trust with local residents. They also frequently depend on government funders, including the City of Palo Alto and Santa Clara County, to provide services. Funders. In addition to the entities listed above, private entities - including banks, companies, and investors - provide both grant funding and loans which support unhoused services and affordable housing. - Developers. Private developers, of both affordable and market -rate housing, are the ultimate providers of housing. Most affordable housing developers depend on a mix of private and public funds to finance their housing, and are therefore 10 Item 3 Page 26 Packet Page 103 of 582 ITEM 3 Attachment A often required to implement specific housing programs as a condition of the funding. Developers partner closely with various suppliers, contractors, and skilled trades to do the actual construction of the units - and the price and availability of these partners intimately affects development costs. Palo Alto Programs and Services And Known Gaps The existing programs and services offered in Palo Alto are divided below into the three strategies that align with the Community Plan to End Homelessness, as listed above. 1) Address the root causes of homelessness through system and policy change This report is mostly focused on programs and services, but there are several strategies in place in Palo Alto that do help address systems causing homelessness. These include some of the City's renter protections, such as: - Security deposit limit of 1.5x rent for unfurnished units - Just cause eviction protections, expanded to more recent tenants and newer buildings - One year lease requirements - Project Sentinel Palo Alto Mediation Program, funded by the City of Palo Alto. It also includes anti -displacement provisions required by both the City and the State, including: - Relocation assistance for no fault evictions - Housing Crisis Act - First right of refusal for displaced households in new buildings All of the above programs require households to be informed about their rights, and often require the pursuit of a mediation or court process to rectify any wrongs. There is not a proactive monitoring system in Palo Alto for the protections above. The City also has several strategies in place aimed at increasing the supply of market rate and affordable housing via planning processes - which in addition to the funding programs discussed below, are key for addressing the underlying issue of housing scarcity. These include the following Housing Element programs in process: - Downtown Housing Plan - Housing on City -owned lots 11 Item 3 Page 27 Packet Page 104 of 582 ITEM 3 Attachment A Evaluation of fees and fee amendments Developer coordination Considering Below -Market -Rate Program modifications Housing Incentive Program Housing Incentive Program (HIP) and Affordable Housing Incentive Program (AHIP) modifications - Expansion of the El Camino Real Focus Area - Streamlining - Allowing more mixed -use development at commercial sites - Seismic regulations update - Code amendments for alternate housing types In addition to this multitude of programs, there are opportunities for further planning programs aimed at increasing housing and specifically, affordable housing development, further discussed in Section 3. Finally, the City has staff dedicated to addressing housing and homelessness, including 2.5 FTE in Planning, 1 FTE in the City Manager's Office, and 2 FTE in Community Services (not exclusively working on unhoused services). 2) Improve quality of life for unsheltered individuals and create healthy neighborhoods for all There are a number of strategies aimed at improving the quality of life of unhoused Palo Altans. In general, these kinds of services draw from a range of funding sources. Meals are largely provided by private groups. Medical care is largely paid for by federal, state, and County funds. The majority of shelter is funded by the County and State, but there are two small shelter programs in Palo Alto that receive some funds from Palo Alto, as well as private funding. Below is a list of services available to unhoused Palo Altans: - Medical Services - Peninsula Healthcare Connection and Ravenswood Family Health Center offer medical services, including mental health services. The North County TRUST Team and the Psychiatric Emergency Response Team (PERT) are meant to provide mental health services on demand in response to calls for assistance. PERT is still awaiting a clinician. Peninsula Healthcare Connection, 12 Item 3 Page 28 Packet Page 105 of 582 ITEM 3 Attachment A Ravenswood Family Health Center, and the North County TRUST fund rely on federal, state, and County funds. The City contributed some grant funding to the North County TRUST team. The PERT team is run by the City. Food Services - There are four food distribution sites in Palo Alto, including hot meals and groceries. The City and County both provide support to La Comida, and the food programs also benefit from private donations. CalFresh and WIC is also available via the County, funded in part by County, state, and federal funds. Palo Altans can sign up via the County at their North County Social Services office in Mountain View, or via outreach services at the Opportunity Center (sometimes). - Shelter Services - Palo Altans can seek shelter in the following locations: - Hotel de Zink: a shelter with space for approximately 15 adults at rotating locations (generally faith -based institutions) around the City. LifeMoves coordinates the shelter program, and the City contributes funds. - Home and Heart Collaborative: a winter shelter program with space for approximately 15 women at rotating locations (generally faith -based institutions) around the City. The City contributes funds. - Overnight Warming Location (O.W.L.): Last year, the City opened the downtown library for overnight shelter during cold weather events. This site can serve approximately 10 people during a cold weather event and was open for 15 nights during the cold weather season. - Shelters in Mountain View and Sunnyvale, including the Mountain View Homekey Shelter (serving adults and families in a non -congregate setting), the Sunnyvale Shelter (serving families and adults in a congregate setting), and the Mountain View cold weather shelter hosted at a Mountain View church (serving women in a congregate setting in the winter months). These sites are largely funded by Santa Clara County, using a variety of funds, with contributions from Mountain View and the state for the start up of the Homekey Shelter. - Shelters elsewhere, including East Palo Alto and San Jose. - Safe Parking - Palo Altans living in vehicles can live in the City's safe parking program, run in partnership with Santa Clara County and MoveMV at a variety of 13 Item 3 Page 29 Packet Page 106 of 582 ITEM 3 Attachment A sites offered by Palo Alto congregations. There is also a recently expanded site for RVs on city -owned property at Geng Road that offers a variety of amenities on -site, including showers, bathrooms, and laundry facilities.. The congregational sites have rules limiting the hours of use to overnight only, and to cars only. - Outreach - Outreach workers help inform unhoused Palo Altans about services, and try to connect them to both short-term and long-term assistance, tailored to their needs. Several local non -profits perform outreach, including Peninsula Healthcare Connection, Downtown Streets Team, Karat School Project, and LifeMoves provide local outreach. The City, together with some funding from Stanford University, pays for a two -person outreach team from LifeMoves. The County also funds outreach through the Bill Wilson Center. Outreach workers often struggle to engage households living in vehicles, and households who work during the day (these categories often overlap). Other Services - Employment - Downtown Streets Team has a model that aims to provide employment opportunities for unhoused Palo Altans. - Shower and Laundry - Dignity on Wheels, run by WeHope and funded in part by the City as well as the County, provides shower and laundry services, as does the Opportunity Center run by LifeMoves. Despite this range of services, there are major gaps, and sometimes insurmountable barriers, that prevent unhoused community members from using these services. One service provider shared, "to ask somebody to go do these 10 steps [to apply for a program] over a six month period, you might as well ask them to go get accepted to Harvard and.. .graduate with a degree."10 The following gaps relating are most significant relating to quality of life for unhoused individuals: - Inaccessibility and inappropriateness of existing shelters. Besides the City's two rotating shelters, which move between congregations, the Heart and Home Collaborative and Hotel de Zink, and the City's Overnight Warming Location 10 Interviews with Service Providers, Kathryn Fortenberry for "Understanding the Unhoused Community in Palo Alto: A 2024 Perspective." 14 Item 3 Page 30 Packet Page 107 of 582 ITEM 3 Attachment A during cold weather events, most Palo Altans seeking shelter need to do so elsewhere. Families with children have nowhere to go for shelter in Palo Alto until the City's Homekey site opens. In 2022, only 24 Palo Altans used the Sunnyvale North County Shelter, and only 122 Palo Altans used other "North County" shelters." This represents less than half of the City's unhoused population. The rest of Palo Altans sleep on the street, in RVs and cars, couch surf, or go further for shelter. This is likely due to barriers to shelter use, discussed further in section three of this report. In short, issues relating to shelter privacy, shelter rules, and shelter safety can be barriers, as is pure shelter capacity. Issues with transportation. Despite the large array of services in Palo Alto, some services - such as those related to confirming one's identification - are only available in San Jose, which is over an hour away when using public transportation. Even within Palo Alto, transportation issues can have a big impact on those seeking services. One service provider shared that in order for a community member to get from a shelter (at a rotating location) to their regular breakfast program, they would have to walk several miles every morning, as bus services were not available early enough to get them to the breakfast in time. It would be more practical for the client to sleep closer to the breakfast program, even if that meant remaining unsheltered.12 While the forthcoming Homekey Shelter will offer a number of services on site, its location far from main throughways and the City center may be challenging for unhoused Palo Altans who need to access services and supports located elsewhere. Access to communication. Unstable access to wi-fi, computers, and phones make it particularly difficult for unhoused community members to seek services and secure housing. It is difficult to find out if you've gotten off a waitlist, for example, if it is hard to be contacted. When applying for programs, like CalFresh or MediCal, or, as discussed further in the next section, applying for housing, you often need to submit documents and fill out multiple applications, which is nearly impossible without regular computer access. While both the library and the Opportunity Center offer computer access, and there are programs offering cell "Santa Clara County Analysis of Palo Alto -Affiliated Vl-SPDAT Responses, 2022. 12 Same as above.. 15 Item 3 Page 31 Packet Page 108 of 582 ITEM 3 Attachment A phones, none of these ensure stable access to the communication systems on which most programs, and certainly our society, run. Issues specific to unique needs. Service providers report other obstacles facing specific populations - such as senior households who cannot work and increase their income, or undocumented households who may not have the proper paperwork to obtain employment or needed services. Of course, the ultimate quality of life outcome for unhoused Palo Altans is to stabilize in permanent housing. The current options for permanent housing and homelessness prevention are discussed further below, in strategy 3, but an anecdote from a service provider helps to explain how the lack of housing options impacts quality of life issues. According to one service provider, outreach workers helping unhoused community members often encounter a lack of trust, and a lack of desire to engage in services in shelter, when waiting for housing becomes demoralizing.13He shared, for example, that trying to sign up seniors for housing programs, when the waitlist is likely several years can lead to a lack of desire to continue with other outreach efforts. Understandably, the many barriers faced by unhoused community members when seeking services can make it very difficult for them to stay engaged with services, especially when a happy end result seems unlikely. 3) Expand homelessness prevention and housing programs to meet the need Ultimately, housing is the only permanent stable outcome for unhoused Palo Altans. As discussed further in section 3, below, affordable housing, rather than market -rate housing, is often the only viable option for unhoused Palo Altans. The VI-SPDAT assesses the types of housing needed by unhoused community members. In July 2023 through June 2024, 115 unhoused Palo Altans were assessed to need Rapid Rehousing, while 120 were assessed to need Permanent Supportive Housing. Rapid Rehousing (RRH) units are meant to give unhoused households a deeper rental subsidy at first, eventually tapering towards more typical affordable rents as the household stabilizes. As described above, Permanent Supportive Housing (PSH) units provide deep subsidies, services, and case management for households who have a 13 Interviews with Service Providers, Kathryn Fortenberry for "Understanding the Unhoused Community in Palo Alto: A 2024 Perspective." 16 Item 3 Page 32 Packet Page 109 of 582 ITEM 3 Attachment A disabling condition that would prevent them from increasing their income in the future. Both of these kinds of units have most recently been funded by Santa Clara County's Measure A funds, which are nearly entirely expended. There are also many unhoused households who might be able to take advantage of affordable housing that simply provides a subsidy based on income. These affordable units might be part of the City's Below -Market -Rate (BMR) program, which means they were provided as part of a market -rate development. Or, they could be subsidized in a development built by an affordable housing development, which typically is funded in part by state, private, County, and City funding. Palo Alto currently has 2,336 affordable units, including: - 242 Below -Market -Rate Ownership Units - 345 Below -Market -Rate Rental Units, ranging from 30% AMI to 120% AMI - 1,553 subsidized units (not including the PSH units listed below), ranging from 30% AMI units to 60% AMI units for families, seniors, individuals, formerly homeless, and people with disabilities - 196 units that could be described as permanent supportive housing (although they were built before the term was standardized) Many of these units are already full, and there are long waitlists, or even closed waitlists. Looking forward, Palo Alto has several entitled projects with affordable housing units included. Table 2.1 shows the number of currently entitled affordable housing units at various income levels, not including PSH and RRH units, and not including forthcoming BMR inclusionary units: 17 Item 3 Page 33 Packet Page 110 of 582 ITEM 3 Attachment A Table 2.1: Currently Entitled Affordable Housing Units (not inclusive of Rapid Rehousing and Permanent Supportive Housing Units)'" Income ELI VII LI MI Above MI Level Forthcoming 46 90 44 36 38 Units Table 2.2 considers whether the types of forthcoming units in Palo Alto align with those needed for unhoused residents currently 'in the queue' for housing. It compares the number of unhoused individuals in Palo Alto, assessed by the VI-SPDAT as needing rapid rehousing or permanent supportive housing, with the number of newly approved affordable units in Palo Alto that will include these services. Most notably, there are no new permanent supportive housing units expected in Palo Alto in the next few years, despite there being 120 unhoused people affiliated with Palo Alto who have been assessed to need this kind of housing and will have to seek it outside of Palo Alto. Table 2.2: Palo Alto Unhoused Assessed to Need Rapid Rehousing or Permanent Supportive Housing vs. Forthcoming Units15 Service Needs Rapid Rehousing Permanent Supportive Housing Forthcoming (entitled) Units 32 0 Palo Alto Unhoused 115 120 Residents Assessed to Need Various Services There are a number of funding programs aimed at increasing the supply of affordable housing, including rapid rehousing and permanent supportive housing, including: - City funds 14 The forthcoming units are drawn from the expected income levels of units being built at the following entitled projects: 525 E. Charleston, 3001 El Camino Real, 231 Grant Ave. Forthcoming below -market -rate inclusionary units, and non -entitled projects are not included. The needs of unhoused residents is from the County's VI-SPDAT.. 15 Same as above. 18 Item 3 Page 34 Packet Page 111 of 582 ITEM 3 Attachment A City Affordable Housing Fund, including funds from the City's business tax, and development fees - CDBG Funds Local Housing Trust Fund Permanent Local Housing Allocation Funds County Funds - Measure A (nearly expended) - Stanford Affordable Housing Fund State Funds - State SuperNOFA Funds - Homekey - Tax Credits All of these funds face scarcity compared to demand. The City released a Notice of Funding Availability in September 2024 to solicit proposals for affordable housing developments that could receive local affordable housing funds. Additional funds are expected to be needed to address the planned pipeline of affordable housing projects in Palo Alto. County Measure A funds are nearly all expended. And, increasingly, many state funds are more competitive and are harder to obtain at the levels a project needs. Many projects have had to apply for funding in multiple rounds, or seek alternative funding, due to the increased competition for state funding. As demonstrated, there simply aren't enough forthcoming affordable units of any type to meet the needs of unhoused Palo Altans. Exacerbating the issue is that each household has their own unique needs relating to affordable housing. For example, some households may face unique challenges, such as major credit issues, that could stymie their affordable housing efforts. Others have unique households sizes, that make it difficult to find a unit - for example, there are several unhoused Palo Alto households with multiple children who will need larger units. While much of the focus of this report is on the currently unhoused, one of the easiest ways to address homelessness is to prevent people from losing their housing in the first place. The following homelessness prevention programs are available in Palo Alto: 19 Item 3 Page 35 Packet Page 112 of 582 ITEM 3 Attachment A - Homelessness Prevention System. This program is funded by the County, and funds are distributed based on need. 111 Palo Altans used this program last year. Some cities contribute additional funds to the program. LifeMoves is one of several distributors of these funds. - Housing Problem Solving. This County -funded program allows service providers to provide counseling to try to address housing issues creatively and quickly. It is associated with flexible funds available for practical problem solving that prevents homelessness (for example, furniture that might make it feasible to stay with family). Several service providers offer this service, and it can also be accessed by calling the shelter hotline. - Rental subsidies. When the vouchers are available, Palo Altans can access federally -funded Section 8 vouchers to make market -rate units affordable. These vouchers are often associated with long or closed waitlists. All of these homelessness prevention programs are limited in capacity, compared to need. There are not enough homelessness prevention funds to meet the need, nor affordable units to serve all the households facing crisis. Affordable housing itself can also be a homelessness prevention program, in that households can move from unaffordable market -rate housing to subsidized housing, rather than falling into homelessness when a financial crisis or an increase in rent forces them out of their housing. In Palo Alto, the number of cost -burdened renters (those spending over 30% of their income on housing) at various income levels is compared to entitled and proposed affordable and market -rate units in table 2.3. While only a small portion of all cost -burdened renters will become homeless in any given year, by definition, all of them would benefit from help affording their housing, either via an affordable housing unit, rent subsidies, income assistance or some other program. 20 Item 3 Page 36 Packet Page 113 of 582 ITEM 3 Attachment A Table 2.3: Currently Entitled and Proposed Housing Units (not inclusive of Rapid Rehousing and Permanent Supportive Housing Units) Compared to Cost Burdened Renters Income Level ELI VII LI MI Above MI Entitled Units 46 96 49 60 331 Proposed Units 3 22 408 51 1,973 (not yet entitled) Cost -Burdened 1,460 865 915 550 635 Renters16 16 Department of Housing and Urban Development Comprehensive Housing Affordability Strategy Data, 2017-2021 American Community Survey data. 21 Item 3 Page 37 Packet Page 114 of 582 ITEM 3 Attachment A 3. Literature Review and Relevant Programs and Services from Other Municipalities The following section summarizes key findings in the literature and highlights promising solutions to address the known gaps and known needs in housing and unhoused services in Palo Alto. The key findings touch on the limits of congregate shelter, the high demand for and low availability of affordable housing, the high cost of building new affordable units, and the limits of enforcement. Congregate shelter is not accessible and/or appropriate for many unhoused community members. In Palo Alto, a majority of unhoused residents are unsheltered," living in an RV, car, on the street, or on a couch.'$ This is reflective of a larger statewide trend that unsheltered homelessness is increasing faster than sheltered homelessness.19 In addition to inherent safety issues related to remaining unsheltered, unsheltered households in Palo Alto are less likely to access services, ranging from basic support services like healthcare and food, to support applying for housing or overcoming barriers to housing. As the City's safe parking provider explained, unhoused residents often have to spend much of their time ensuring that they have a safe place to sleep. Once they are in a program like safe parking, they have the space and stability to make longer -term plans relating to their housing and livelihoods. And despite the best efforts of outreach workers, it is easier for households to work with case managers and service providers when they can do so at the same place where they are staying. " In counts of unhoused households, unsheltered typically means living outside of a shelter or transitional housing program - including living in an RV or car, living on the street, and couch surfing. '8 Santa Clara County VI-SPDAT responses among "Palo Alto affiliated" households, July 1, 2023 - June 30, 2024.. 9 "Five Recent Trends in Homelessness in California." Terner Center for Housing Innovation, UC Berkeley. https://ternercenter.berkeIey.edu/wp-content/uploads/2023/ 10/Five-Trends-in-CA-Homeless ness_Oct-2023-5.pdf 22 Item 3 Page 38 Packet Page 115 of 582 ITEM 3 Attachment A There are a range of reasons that an unhoused person may be unsheltered. The Department of Housing and Urban Development (HUD) discusses the following shortcomings in the shelter system that contribute to households living in encampments.20 While these shortcomings examine the reason households choose encampments instead of shelter, they remain true in Palo Alto, where many households instead choose the relative privacy of living in a car or RV, couch surfing, or living on one's own on the street. HUD lists the reasons households remain outside of shelters as follows: - Lack of available shelter space. This is particularly relevant in Palo Alto, where most sheltered unhoused Palo Altans need to seek shelter in other towns. The distance to available shelters is a barrier to seeking shelter. In fact, most Palo Altans in emergency shelter are in shelters in San Jose, which can be over one hour away by public transit. - Concerns about shelter safety and privacy. Many families and single women choose to remain outside of traditional shelter systems because the communal settings feel unsafe for themselves or their families. Many families with children, especially, prefer living in vehicles, where they can have a semblance of privacy and control, rather than a communal shelter setting. Many single women prefer women's only shelters. - Shelter rules that would separate individuals from members of a family, a partner, or a pet. - Rules relating to entry and exit times, sobriety or other difficult to follow restrictions. While there are some specialized programs for those facing issues of sobriety, most shelters will not allow continued disruptions due to lack of sobriety. A local service provider describes the issue as follows, "If we're lucky [after calling the shelter hotline]... clients will be accepted and taken into shelter right there and then. But sometimes, it's difficult because the waiting list is so long... Sometimes there's clients.. .so 20 The referenced report defines encampments as "groups of people experiencing unsheltered homelessness together." From: "Understanding Encampments of People Experiencing Homelessness and Community Responses: Emerging Evidence as of Late 2018," U.S. Department of Housing and Urban Development. https://www.huduser.gov/portal/sites/default/files/pdf/Understanding-Encampments.pdf 23 Item 3 Page 39 Packet Page 116 of 582 ITEM 3 Attachment A used to living out in the outdoors that that's where their comfort zone is at and being in. Being in a shelter is abnormal to them."21 Other municipalities have offered the following to address this issue: 1) Increasing non -congregate shelter22 options. Per the Terner Center at UC Berkeley, "Research suggests that non -congregate shelters can provide more stability and more effective services than congregate shelters can to support residents' steps to move back into housing, such as working with case managers, applying for housing assistance, and searching for an available housing unit. ,23 The City's safe parking program is a good first effort at providing a sheltering program that is more attractive to unsheltered households. Similarly, the City's upcoming Project Homekey will also offer non -congregate sheltering options. That said, the City may find that there is more demand for non -congregate shelter than spaces available. If that is the case, the following option may be of consideration. 2) Using Hotels as Temporary or Permanent non -congregate shelters. The City also has a number of underutilized hotels along El Camino Real, at least one of which was used for non -congregate sheltering during the COVID-19 pandemic. These hotels may be a particularly cost-effective option for offering shelter to households who are facing immediate homelessness, and are unable to access shelter due to shelter capacity issues. The County of Santa Clara, the City of Santa Clara, and the City of San Jose have all begun work on sheltering options in hotels. Motel vouchers are also a common option offered by agencies serving those whose homelessness is caused by domestic violence. This would not necessarily need to be something the City took on by itself, but rather, through 21 Interviews with Service Providers, Kathryn Fortenberry for "Understanding the Unhoused Community in Palo Alto: A 2024 Perspective" 22 HUD defines non -congregate shelters as one or more buildings that provide private units or rooms for temporary shelter, serve individuals and families that meet one or more of the qualifying populations [generally, homeless, at risk of becoming homeless, or fleeing abuse], and do not require occupants to sign a lease or occupancy agreement. 23 "Five Recent Trends in Homelessness in California." Terner Center for Housing Innovation, UC Berkeley. https://ternercenter.berkeIey.edu/wp-content/uploads/2023/ 10/Five-Trends-in-CA-Homeless ness_Oct-2023-5.pdf 24 Item 3 Page 40 Packet Page 117 of 582 ITEM 3 Attachment A partnerships with funders, other municipalities, and non -profits, in order to address a desire to provide non -congregate shelter to those actively seeking it. Income -restricted affordable housing is the best fit for many seeking housing. but there is not readily available affordable housing for many who are seeking it. There is often a well-intentioned misunderstanding that if unhoused households would only accept help, they would move to housing. This misunderstanding is often particularly discussed when assuming throughput for shelters and transitional housing programs. It is not appropriate to assume that sheltered households willl exit the shelter into permanent housing. In fact, in Santa Clara County from May 2022 through April 2023, only 38% of households in shelters exited the shelter into permanent housing, and only 28% of households in transitional housing exited the transitional housing into permanent housing.24 This lack of exit to permanent housing reflects, among other things, the critical lack of affordable permanent housing options compared to the need, as illustrated above in Section 2. It is also worth noting that it is extraordinarily difficult for a household to look to employment as their only solution for their housing crisis. That is, while employment may help a household to pay the rent in a subsidized affordable unit, in Palo Alto, where market -rate units are particularly expensive, it is difficult to get enough employment to move from being cost -burdened or homeless into being able to afford a market -rate unit. Joint Venture Silicon Valley's 2024 Silicon Valley Index reports that the median service worker earns $46,500, while a household of four needs $30/hour, or $62,400 annually, to meet the index's "self-sufficiency" wage (defined as "a no -frills, bare -bones minimum for affording basic human needs such as housing, childcare, food, transportation, and healthcare" in Silicon Valley).25 That is, for the median service worker to be able to afford housing for their family of four in Palo Alto without being 24 "Supportive Housing System in Santa Clara County." Santa Clara County Office of Supportive Housing. Report to County Housing, Land Use, Environment and Transportation Committee, June 20, 2023. https://osh.sccgov.org/sites/g/files/exjcpb671 /files/documents/SH%20Dashboard%20and%20 TemporaryHousing_PSH_Report_June_2023_Final.pdf 25 "2024 Silicon Valley Index." Joint Venture Silicon Valley. https://jointventure.org/images/stories/pdf/index2024.pdf 25 Item 3 Page 41 Packet Page 118 of 582 ITEM 3 Attachment A cost -burdened, they need affordable housing with a subsidized below -market rent. When affordable housing is lacking compared to demand (as discussed in section 2), there are few solutions for these households, other than leaving the area. One potential opportunity involves increasing homelessness prevention programs. There are several cities that contribute to the County's Homelessness Prevention program, with the aim of preventing households from falling into homelessness in the first place. If the City were to consider this option, it would need to work with the County to determine an appropriate funding amount that would augment the County's program, in hopes of better meeting the need. Building affordable units is expensive, but cities can use planning programs to incentivize more affordable units (alongside or instead of funding programs) For the past several years, affordable housing in Santa Clara County has benefitted from a mix of state funding, the County's Measure A program, and local funds. State funding has become considerably more competitive, and the County's Measure A funds are close to depleted. While a regional funding measure26 was recently on the ballot, it has since been pulled. The City of Palo Alto already appropriates a portion of its business tax towards affordable housing and unhoused services. The City also contributes specific development impact fees and in -lieu fees towards affordable housing. Per the City's Housing Element, the City expects $20 million to be set aside for these uses over the next eight years, which the City estimates could provide gap funding for 55 affordable housing units. As noted in section 2, the City is already planning to undergo nexus studies relating to impact fees. The City also has existing planning programs, as well as planning programs currently under review (as noted in section 2), meant to incentivize affordable housing. For example, the Affordable Housing Incentive Program (AHIP) specifically provides for major flexibility for affordable housing developers to increase density, and waive certain development regulations. The Housing Impact Program, provides greater flexibility for 26 The Bay Area Housing Finance Authority had originally authorized a large funding measure, meant to provide affordable housing funds across the Bay Area. This measure has since beer removed from the ballot. 26 Item 3 Page 42 Packet Page 119 of 582 ITEM 3 Attachment A residential development in commercial zones and allows for increased density, both for market -rate and affordable housing developers. In order to continue to build affordable housing in Palo Alto, the City can build on its work by: - increasing available funding, - making the development of affordable housing more affordable, and/or, - requiring or incentivizing the creation of affordable housing. The following are options for each of these possibilities: 1) Increasing available funding. Several local municipalities have sought alternative sources of funding for affordable housing via ballot measure. To augment currently available funding, the City may consider engaging analysts to evaluate the potential of additional funding sources, such as a transfer tax (as in the City of San Jose) or a vacancy tax (as in the City of Berkeley) to provide the City with funding exclusively for affordable housing. In addition to simply making affordable housing development more feasible, the City's ability to offer affordable housing funds makes it possible for the City to require developments to meet the City's housing needs — for example, more ELI units. 2) Making the Development of Affordable Housing More Affordable. Many local cities, including Palo Alto, have used publicly -owned land and institutionally -owned land for affordable housing, which in turn reduces the affordable housing development's funding needs by the price of the land, which is significant. Recently, the City of Palo Alto requested refined proposals for a public -private partnership to develop affordable housing on a downtown city -owned surface lot. The County of Santa Clara's two affordable housing developments in Palo Alto are on County -owned land. Palo Alto also has partnered with local institutions in the past — such as Stanford University — to use land contributions to meet City requirements and needs. There are possibilities for building on this example to create more opportunities for land donations for affordable housing — including City -owned parking lots, privately -owned parking 27 Item 3 Page 43 Packet Page 120 of 582 ITEM 3 Attachment A lots (with incentives offered for development on other parts of the land), and institutional sites (such as places of worship or schools) facing redevelopment. 3) Requiring or Incentivizing the Creation of Affordable Housing. Inclusionary Rental Housing. Requiring inclusionary affordable units in rental housing may, depending on how the inclusionary requirement affects the costs of development, significantly increase the supply of affordable units in Palo Alto. Many cities in the Bay Area, including Menlo Park, Mountain View, Morgan Hill, Los Gatos, Campbell, San Jose, San Francisco, and others have inclusionary housing requirements for rental projects. Many cities fine-tune their inclusionary requirements to 1) prevent the inclusionary requirement from meaningfully decreasing development, and 2) incentivize the creation of units of the specific size and income levels that meet their needs (for example, requiring less ELI units or more MI units to meet the same requirement). Any such requirement will likely also require the fine-tuning of the City's rental housing in -lieu fees to make the fee requirement (which would become an alternative to creating inclusionary units) more comparable to the cost of creating inclusionary units. An inclusionary requirement would also need to be carefully considered with respect to the City's Housing Incentive Program and Housing Focus Areas to ensure all three programs could coexist to increase the development of affordable housing. Going Beyond Density Bonus for Affordable Housing. The City already offers incentives and concessions to builders who develop affordable housing, per state Density Bonus Law and the City's Affordable Housing Incentive Program. There are other options that have been offered in other municipalities and in the state in order to incentivize the creation of affordable housing, in particular: - The City of San Diego created a Bonus ADU program, which allowed for the creation of additional ADUs (beyond SB 9 requirements) if some of the additional ADUs were deed -restricted to be affordable units for a limited period of time. 28 Item 3 Page 44 Packet Page 121 of 582 ITEM 3 Attachment A - The State's "Builder's Remedy," while controversial, allowed for significant density increases in exchange for the creation of affordable units. Time will tell the actual success of this program in developing affordable units. The City could consider additional incentives and concessions for those proposing affordable housing that particularly meets the city's needs. This might go beyond the City's existing Affordable Housing Incentive Program in that it would include market -rate developers with included affordable units, or would provide additional development concessions that affordable housing developers propose. Any exploration of this option would require the engagement of housing developers as well as an economic policy analysis firm to analyze the appropriate incentives to create more affordable units in Palo Alto. Replacing Commercial Development Impact Fees with Options for Building Housing. Depending on Palo Alto's anticipation of commercial development, the City could adopt incentives (such as waiving development impact fees), to encourage commercial developers to build affordable units. The City embarked on an effort like this at the Fry's site. This is generally effective in places where there will be vast commercial development, which is less common in Palo Alto, but could be adapted, for example, in smaller tracts, such as shopping centers undergoing redevelopment or existing commercial zones undergoing redevelopment. These requirements would likely match well with the City's existing efforts to allow for mixed -use development on formerly commercial -zoned sites. In Redwood City, the city encourages "simultaneous development" of residential and commercial. Enforcement is unlikely to be a Iona -term solution. In general, there are very few tools for law enforcement to provide permanent solutions for unhoused households. While there are some citations that law enforcement can issue, and while law enforcement often plays an important role when there are health and safety issues, ultimately, forcing households to move or issuing a citation does not address the long-term issue of households not having a long-term place to live. Even in places where things like parking bans have been enforced, households have simply moved around to other areas nearby. As discussed in section 1, many unhoused 29 Item 3 Page 45 Packet Page 122 of 582 ITEM 3 Attachment A households in Palo Alto have connections in Palo Alto, and have incentive to stay - for jobs, for kids in local schools, or for proximity to family or community. County staff shared that often citations and removals end up causing additional barriers for households trying to stabilize and seek housing. Households that are moved are harder to reach by outreach workers, who may have been working with them in a known location. When citations are issued, households who are already facing financial struggles incur another financial obligation that makes it harder for them to get funds together for basic needs or housing solutions. Often, these enforcement actions make it harder for households to ultimately get housing. While this analysis is focused on housing and services for the unhoused, the City is also reviewing its own enforcement and that of neighboring and like jurisdictions, in light of the recent Supreme Court decision enabling jurisdictions to engage in enforcement activities previously halted under a 9th circuit opinion. An overarching strategy and team is often needed to address the need. As discussed above, the need is large when addressing housing crises, and municipalities often need to set discrete goals and cohesive strategies in order to effect change. This includes, for example, setting requirements for BMR inclusionary housing to have a specific affordability level that the City knows is of particular need, focusing affordable housing funds on a specific type of affordable housing that will address the needs of the unhoused, or building shelter programs to serve an underserved population. Many cities, including the cities of Milpitas, Morgan Hill, Cupertino, Mountain View, Santa Clara, Sunnyvale, and San Jose have a specific housing department (or division or unit) whose role is to administer the City's various housing programs, services for unhoused residents, and to implement strategies as discussed above. While Palo Alto has a number of staff across multiple departments — the Community Services Department, the Planning and Development Department, and the City Manager's Office — who work on elements of housing and homelessness, there is no central hub. Some cities have a housing team that mainly works on issuing funds and supporting affordable housing developments through the planning process. Others have housing 30 Item 3 Page 46 Packet Page 123 of 582 ITEM 3 Attachment A teams that also implement supportive programs serving unhoused communities. Still others focus on rental protections. Nearly all require investment into work related to grant funding and coordination with potential partners. A centralized housing team could work on the following: - Developing specific goals tailored to the City's housing needs. This would go beyond the goals set in the Housing Element to tailor goals to specific — and occasionally changing — needs in the cost -burdened and unhoused populations. - Coordinating existing and future efforts - both with regards to housing and serving the unhoused - so that they are aligned and working towards the aforementioned goals. - Developing relationships with affordable and market -rate developers to understand barriers to housing development. - Serving as a "responsible party," as developments go through the City's planning process, helping to advise developers on streamlined processes, and coordinating with other departments for more efficient and seamless review processes. The goal for this role is to "get stuff done," - that is, get affordable housing built. - Applying for funding opportunities and developing funding strategies. - Partnering with non -profits and other municipalities to pool resources and collaborate on solutions. The list above is not a comprehensive list of possible programs. It includes those that link most directly to Palo Alto's current efforts. Appendix C lists some other programs and services offered by other municipalities that could be considered for Palo Alto. 31 Item 3 Page 47 Packet Page 124 of 582 ITEM 3 Attachment A 4. Summary of Gaps Palo Alto has both significant needs relating to housing and the unhoused, and significant services and programs meant to address those needs, and yet, because of the depth of the housing crisis, gaps remain. One of the most notable gaps involves the need for non -congregate shelter, which could provide an important option for unsheltered Palo Altans to stabilize, and receive services. While the City's upcoming Homekey site may address a large portion of the need for non -congregate shelter, more options may be worth considering to meet the demand, such as a motel voucher program with key partners. Another notable gap is the quantity and type of affordable housing expected to be produced in the City, compared with the number of unhoused Palo Altans, and the number of Palo Altans at risk of becoming unhoused. While the City currently has programs in place meant to incentivize and fund affordable housing, additional programs are needed to create the quantity and type of units necessary to house the City's currently unhoused population. Additionally, given the number of Palo Altans who become homeless annually, and the number of Palo Altans facing housing cost burdens, more options are needed to prevent households from becoming homeless. While housed Palo Altans facing housing crises currently benefit from programs like the County's Homelessness Prevention System, further supports - either through an expansion of this program or some other program - are needed to prevent Palo Altans facing rent burdens from falling into homelessness. Armed with the knowledge of the City's current needs relating to housing and the unhoused, the City can strategize on the best paths forward to address them. Unlike most cities, Palo Alto does not have a centralized housing team to dedicate time to coordinating the City's strategies relating to housing and the unhoused. Such a centralized office allows the City to focus on moving projects and programs through the process and into production. Depending on the City's goals, the team can focus exclusively on getting affordable units built, and the funding and planning processes that entails, or can more broadly coordinate rental protections, unhoused services, and even homelessness prevention -related programs. 32 Item 3 Page 48 Packet Page 125 of 582 ITEM 3 Attachment A APPENDIX A: Income Categories and Definitions This report uses the following definitions for income categories, which combines the definitions in the U.S. Department of Housing and Urban Development's Comprehensive Housing Affordability Strategy Data and the California Department of Housing and Community Development annual income limits. Note that there are slight differences between how these two data sources define income categories (for example, the state has an "acutely low income" category, and uses a "moderate income" category), but for the purposes of comparing data, the definitions were combined as follows. Income Categories Extremely Low Income (ELI) Less than 30% of Area Median Income Very Low Income (VLI) 30% to 50% of Area Median Income Low Income (LI) 50% to 80% of Area Median Income Median Income (MI) 80% to 100% of Area Median Income Above Median Income (Above MI) Above 100% of Area Median Income In Santa Clara County, the categories above correspond with the following income limits, per the California Department of Housing and Community Development, as of May 9, 2024: Household Size: 1 2 3 4 5 ELI $38,750 $44,250 $49,800 $55,300 $59,750 VLI $64,550 $73,750 $82,950 $92,150 $99,550 LI $102,300 $116,900 $131,500 $146,100 $157,800 MI $129,000 $147,450 $165,850 $184,300 $199,050 Any income above MI would be considered "Above Median Income" in the report. 33 Item 3 Page 49 Packet Page 126 of 582 ITEM 3 Attachment A APPENDIX B: Definitions of Terms This report uses the following definition of terms. These definitions come from the Santa Clara County Office of Supportive Housing's Glossary of Terms: Coordinated Assessment/Entry System (CAS/CES): Coordinated Assessment/coordinated entry is a consistent, community wide intake process that is used to match people experiencing homelessness to existing community resources that are the best fit for their situation. Coordinated assessment maximizes the use of available resources and minimizes the time and frustration people spend while trying to find assistance. It also identifies and quantifies housing and service gaps and thereby enables effective and efficient systems planning. Homeless Management Information System (HMIS): Help Management Information System or Homeless Management Information System. The HMIS is a secure online database that stores data on all homelessness services provided in Santa Clara County. Homelessness Prevention: Homelessness prevention is a key component of the Santa Clara County Community Plan to end homelessness. The homeless prevention program focuses on individuals and households at risk of homelessness in the community and provides critical homeless prevention resources and services to them. Permanent Supportive Housing (PSH) program: Permanent Supportive Housing program provides permanent housing and supportive services to chronically homeless individuals and families. The target population for permanent supportive housing program are chronically homeless individuals with a disability. The program focuses on the population that has high acuity and high costs. The program provides rental subsidy, intensive case management and health care (including behavioral health) to the program participants. There is usually no time limit for the program. PSH has been seen to have a high impact on housing stability. Nationally 84% of program participants have been observed to retain housing for at least a year. Point -in -Time (PIT) Count: Point -in -Time Count refers to the Homeless Census and Survey that is undertaken every two years in the last ten days of January. It is mandatory for all jurisdictions receiving funding from HUD to undertake the Point -in -Time Count. The data 34 Item 3 Page 50 Packet Page 127 of 582 ITEM 3 Attachment A gathered from the count helps the County and local homeless service providers to better understand the needs of the community, evaluate the current system of services, and apply for federal and local funding. RRH (Rapid Rehousing program): Rapid rehousing is an intervention that has been seen to be a successful model in addressing the issue of homelessness in different parts of the country. There are three core -components of rapid rehousing- 1. Housing identification, 2. Move -in and rent assistance and 3. Rapid rehousing case management and services. The clients are provided shallow or declining rent subsidy, other temporary financial assistance and time -limited case management. It has been observed that rapid rehousing helps individuals and families to quickly exit homelessness, return to housing in the community and not become homeless again in the near future. VI-SPDAT: Vulnerability Index - Service Prioritization Decision Assistance Tool: The VI-SPDAT is a part of the coordinated assessment process. The tool is used at the time of intake. It considers the household's situation and identifies the best type of housing/supportive services intervention to address the household's situation. 35 Item 3 Page 51 Packet Page 128 of 582 ITEM 3 Attachment A C O 2 / _ O@ O \ 2 ycE k ~ \ : -: 0 0 0 2 ® d T \ 4 } I U) e 2 $ 6 / F O 0 2 o E o ® - o U \ / \ O o k O / 0 E _ 73// 2 2 U) 0 w O\" m 0/\ @ 0 2 _ w E 2 \ o o CO O I= 2 § 2 } . ./ O ? o O / . Z UI a a) D.7 \ j \ 0 ® ) a < $ > i 0 0 ° a® 0 ® 0 E r 73 7/ F 0 O\ \ E 0 / 0 o : . "a \ O C 0 o i 0 m / 0\ O i O 0 0) O) k j U m V e e C E 0 o § o 2 CL ■ c c @ 0 0o 0 0 ■ @ 0 0 U CO Item 3P Page 52 Packet Page 129 of 582 ITEM 3 Attachment A C 4) O N V) Q 0 C _ _ p V) U U U Q U) o c o o D N N j } N 4) o U a o O } O o 3 O a U O j _ p O O O O O C C D U) O N C C N N N U ro o DO w N c rr DJ O N p O o c ) a z > E a) o a �0 U m C Q r o o) D a- .C U N �C — !' c c a p z c p N °.� U 3 p a ? p C c a E C O m m C c o o 3 m a) O o �(D � C o c I N -I- �Q � U)EOcfQO U CCJr O4- o > O E U i 0 D N m < U N Q. • • N U) •N E Q a V) C 0 a) � o! I- 0 AO) W O U Cl) Item 3 Page 53 Packet Page 130 of 582 ITEM 3 Attachment A U 'V U •C O t O N } O•O) rn 1 C1 N N C ( _ N -I-O) O O 0 O c O C O O) } •C O C °ci o a) 6 3 o� o OC CCODODOa)Ca)DCi ._ o U 0) I-rE E O o CO O 0) N O E 3 a EO 0 O.o a O•N aV) C) Q 3 a) = O Q N O C 0) O N O •N a) c E Z U C C O D- O i O O -C 0 N a) =- a) 0 E O 0) O a - U U a) Q. E O O) O a - L O O) W O U a) a) ` W m U C O 4- > OC c o c �^ 0 = O O > N N a@ E C N \ _ U cD= E Q O N N O DO Q O ^N` N \ 5D rD U® >- O5) >5 CS) O a) >-5) U U C N N C N N E LL, N Item 3 Page 54 Packet Page 131 of 582 ITEM 3 Attachment A N 70 C U. uDC O N 'V U O- a) } V)O O 0 O 1l 0 O } N N 0 ^` } N O O U a) O } ' OO Q O 0 ci C v) a � C 3 E o C c N N 0 �� 3 a L. L O L C O N O O U O O O ti O O O Q X O <„ 00 CO O O N O O O O O 70 O a ai 0 0- O > Z a�a�. o C a) m D O oQ) 0 Q 0 -'-00 a o a) a) r CC N O O a) C i, a) oEDD N — V U 2 0_ v, 00 O 1) Q. N • N N CC E} N O O) E O > I ^L CL LL L O O) W O U 0- Cl) Item 3 Page 55 Packet Page 132 of 582 ITEM 3 Attachment A O) U) i 0. Q C') .0 O U C E }_ cN c OO c } i CD — c O N O C 3 N N O N O CQ N t or c } cPcCD c N c c > O O i c O oO a o_ c a C U c > N 2 '� E Q C 3 U O O 0 O c N a a 5 n } N c O O 0 O E c („ U O O U- U O c a O a D. Q J O cn 2 O. Q O Q Q O) O O o O N 0 > c 0 c ow >z O ui N c V) 0 0) o } C O O U C U a) Q. • C c E E a O Q O C L O AO) W O U 0 Item 3 Page 56 Packet Page 133 of 582 ITEM 3 Attachment A O v a) O U v a- 0 •a C ow >z O O � Q V Q) C O Cc Q) O 0 a) ,, 0 a) 3 3 o E O O a) 5 c Q C c a) Q 1 N ° o o o CO N U C a N E a _ ° Q) N , N N > Di COCC C ° a o 3 'O) o a) 'c a) a a) O) O O)a } c N N E O c O t 4) O 0 ci)a 4) i, > a O Q) 0 c fl U c -O O c 0 O o) o C C m O° O a) E •� a a o a m °° m ° �, 3 CT ma) o 0 o o > 0 p N 0 O N N O a r N vi i N N ≤n N } o } } U o o 3 'E } - } O a) o 0 c a 0 > Q 0 o o 3 o a N Ln O E U 0 O E C O O L � o 0} 0 O C C O L < a a U a N �� J) Q. °C L O E E o O C- o 0 m m I L O AO) W O U Item 3 Page 57 Packet Page 134 of 582 ITEM 3 Attachment A N ci)a) N O O p) a) N _ L L _ ' U O L Q N N U U � U L a) O 0O a•�O o o.o O)O° o o zC)> oU_-U._ CU) O L ciS O } r0 Or 0 O T N } 3 p C N L 3 5 44) E N o E ai _ DCo • U _ U O } a) p O o E o ) o U O E a } OU O a o Q N O} N I- O 0 N Q O or _D O p p N U L N O O N O O CC 0r N _ U } p) � >. OUCr > > O > Z o o c O- U U o o; 3 E c o O U a� U c a) a 0 O - Q o O o E o D U o c O Qr O j Q o Q O - Q N r- o U O C N O O U r N E L � a ` N E E O O N 2 N O U o 0 0 0 0 > Ea U N Q. • • O) 4) c o O 00 or O r N a z o L O a) N Cl) o N U vsi N Item 3 Page 58 Packet Page 135 of 582 ITEM 3 Attachment A U 'V U •C C O O v a° c ' v o o 0 0 � o m a (D o o o o o a� o U ;� Q o a c) -0 0 — o c. v_ o 0 0 a� } o C o 0 3 a 6 o E N o o L DO p 0 0 o a'� Q o N a�i E o U } N ^ ^>\: W Q- C L D O o) O >0) O 0 N j> c d) 0 0 N N W 0 0 Q 'Q E C o a) ci) m o c E o o E E c D a E E t -0 Q S p m Q U 0 C D o E E O E O D > 0 C x N 0 0 Q 0 0 O 0 0 r 0 a Q) 0 C 0 C N N N N N N E 0 L 0) 0 a- u J) Q. E 0 0) 0 a - L 0 0) W 0 U C) Item 3 Page 59 Packet Page 136 of 582 ITEM 3 Attachment A _ 20 fl. Q c5> *V U O - O c EE c V) N O) C o 0 0 L U D v O o N O o a) } Q U 70 C o U o' L O } O 0) O N N N E c -oN Q} o p U) ®U) 0 O) N O U O C Q O 0 } O O c L O > O w Q N L U Q D L O L U) N O O) cn C U) O C N O M} Q N O > z 'N o o a� .N U c° o 0 a) c o° OD o > o E O o Or ° a o 3 3 .�_ 0 o o o N E U) E 0) 0) ° E o C O Co o O C O N 0) U N Q. • • C N N E O) Q C o O E D O0 Q O 00) /) N L Q 0) 0) C A o O U x Item 3 Page 60 Packet Page 137 of 582 ITEM 3 Attachment A U 'V U •C N U 3 U o o} o o LI u>° E o Q o °° O O Q _� O - O Q Q Q U O O C a o O U o •� O Q 0C Q Q) Q Q Q Q } Q > Q Q } N N Q O O 3 o E Q U Q U O t X Q _ c m O Q o o o o Q Q Q O)} Q} Q Q Cl) Q P Q 0 L N - Q O > U Q O a. } N Q-> _0 Q Q 'Q C O Q O C O Q 0 0 0 a 3 O CA Q° a) E ? U 3 Q E U O° E O L O) O a- } o C- U Q. E O O) O a - L 0�.{) O W O U Item 3 Page 61 Packet Page 138 of 582 ITEM 3 Attachment A U 'V U •C O O) N) a } > Q U} Q Q U Q N j v } CDD E- O _Q N - C `- 4) Q 2— N Q Q Q Q � o_> } N O Q Q O7- Q O Q Q U Q U CL N Q 0 Z Q Q -u O U Q .C O Q) Q } O) o DDO O — o O -c O D -C Q) O CI)O C Q Q C O o _≥ Q Q) O Q a O O J n O Q O Q Q ui O O U Q O Q 3 U O r -or N N ) 0 Q Q) .≥ O) C t O) o O C: E a o ) D O U Q. c Q) E c f o a OC Q N O Q 6)30 L O AO) W O U Item 3 Page 62 Packet Page 139 of 582 ITEM 3 Attachment A C • N L- O CEE 'V U O Q O N v' 0 0 0 4) 0 0 0 O O Q Q O V) _ O O C C O NC C O O •> C N N} O O L } O O 2 O^^ O ll O x` 0 r c ,� E020 0 r a E -W •� ^ O 0D (I) 0 o •c O) 0 0 } ^E Q— 0 a) N U •' N Q � ✓ } o O O O O O N U O.oE � O O v O) •N N O o) O OO � o ? E O 3 � C 0 C_ 0ow O > Q O > z C 0 .- O D m E--O E O O O< OO N O> O O> Q O N i aO4- O C O O 0) 0 O> O 0) 0E o 0 U O O 0 O E Q} CT o o o O o -O o Q O = U o a! 4_ o O o ._ 3 (D O a) O U) Q. • • • �� 0O) 0 o o 0 O i O U) O o Item 3 Page 63 Packet Page 140 of 582 ITEM 3 Attachment A o 3 D o °O > 0 _ •�• '- U c O O f _ C C Qo U)° O) _ Cci) C- -I- N N C V) O L O o N E o, r N N E E N N N . -O � CO O o O 4) O c w O) (l) E N 4) N N- U O — C DC O O N Q i a Zj _ E •5 Q O >} DO O Q O) E O N O N -I- U 0 O 03 OU Z O a N N Z3 N O O) O N O U O N N v } 0) a) U 0 3 7O a O O aD O) C CO N O N i N C N N Q) O. a z > UD o O E 00 0 NO) O 2c C) U C) 0 Q. N • E O) o o -I- U) L O O) W O U Item 3 Page 64 Packet Page 141 of 582 ITEM 4 City Council Staff Report Report Type: CONSENT CALENDAR CITY O F Lead Department: City Clerk PALO a LTO Meeting Date: February 10, 2025 Report #:2501-4045 TITLE Approval of Minutes from January 21, 2025 and January 25, 2025 Meetings RECOMMENDATION That the minutes be reviewed and approved. ATTACHMENTS Attachment A: January 21, 2025 Draft Action Minutes Attachment B: January 25, 2025 Draft Action Minutes APPROVED BY: Mahealani Ah Yun Item 4 Page 1 Packet Page 142 of 582 ITEM 4 Attachment A CITY COUNCIL CITY OF PALO DRAFT ACTION MINUTES ALTO Special Meeting January 21, 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 Present Remotely: Absent: Special Orders of the Day Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Stone Veenker 1. Review List of Applicants and Select Candidates to Interview for the Planning and Transportation Commission (PTC) Vacancies; CEQA Status: Not a project Councilmembers were able to cast two votes for the partial term position and three votes for the two full term positions. The Council selected the following candidates that received at least one vote to interview for the PTC vacancies; one (1) partial term, and two (2) full terms: • William Glazier: Lauing, Stone, Reckdahl, Veenker (Partial or Full) • Daniel Hekier: Lu, Lythcott-Haims (Partial or Full) • Terrance Holzemer: Lauing, Reckdahl, Stone (Partial Only) • Todd James: Burt, Lauing, Reckdahl (Partial or Full) • Kevin Ji: Burt, Lauing, Lu, Lythcott-Haims, Stone, Reckdahl, Veenker (Partial or Full) • Arthur Keller: Stone (Full or Partial) • Thomas Kellerman: Burt, Lauing, Veenker (Partial or Full) • Declan King: Reckdahl (Full Only) • Henrik Morkner: Veenker (Partial Only) • Salim Parak: Burt (Full or Partial) Page 1 of 5 Item 4 Page 2 Packet Page 143 of 582 ITEM 4 DRAFT ACTION MINUTES Attachment A • Forest Peterson: Lu, Lythcott-Haims, Stone, Veenker (Partial or Full) • Michael Regula: Lu (Partial or Full) • Rika YeaKyung Yamamoto: Burt, Lu (Partial or Full) Agenda Changes, Additions and Deletions Public Comment Council Member Questions, Comments and Announcements Study Session 2. Study Session on 2024 City of Palo Alto Suicide Prevention Policy and City Programs Supporting Community Mental Health; CEQA Status: Not a project NO ACTION Consent Calendar Councilmembers Burt, Lauing, Veenker requested to pull Agenda Item Number 7. MOTION: Councilmember Lythcott-Haims moved, seconded by Councilmember Reckdahl to approve Agenda Item Numbers 3-6 and pull off consent Agenda Item Number 7. MOTION PASSED: 7-0 3. Approval of Minutes from January 6, 2025 Meeting 4. Authorize the City Manager, or designee, to award a Conditional Funding Commitment of $5,000,000 in Housing In -Lieu Residential Funds, Commercial — Residential Impact Fee Funds, Residential — Housing Impact Fee Funds, and Local Housing Trust Fund Funds to, and enter into funding agreements with, Charities Housing for the Development of a 100% Affordable Housing Project at 3001 El Camino Real; CEQA status — previously studied in a Mitigated Negative Declaration. Page 2 of 5 Sp. City Council Meeting Draft Action Minutes: 01/21/2025 Item 4 Page 3 Packet Page 144 of 582 DRAFT ACTION MINUTES Attachment A 5. Approval for the City Manager or their Designee to Execute PO C25193331 with Carahsoft, Utilizing a General Services Agreement (GSA) Contract Number 47QSWA18D008F, to Procure SAP Signavio/LeanlX, SAP Governance, Risk, Compliance (GRC) and Identity Access Governance (IAG) Solutions for a 3 -Year Term for a Total Not -To -Exceed Amount of $1,032,431; CEQA Status: Not a Project 6. Approval of Contract Amendment Number 1 to Contract C24188179 with Urban Field Studio in the Amount of $15,000 for a Revised Six -Month Contract Total Amount Not -to - Exceed $264,708 for the Project Management Costs for the Development of the Car -Free Streets Implementation Plan. CEQA Status — Exempt Under CEQA Guidelines Section 15262 7. Approval of Professional Service Contract Number C25192988 with Lloyd Consulting Grouper ELC., in the Amount Not to Exceed $232,985 to Conduct a Comprehensive Turf Study for a Period Six Months; CEQ.A Status exempt under CEQA reguIation 15262 and 15306 Pulled from Consent Calendar (Date TBD) City Manager Comments Ed Shikada, City Manager Action Items 8. FIRST READING: Adoption of an Ordinance Amending Title 18: Zoning Ordinance of the Palo Alto Municipal Code (PAMC) to Implement Programs 1.5A (Stanford University Lands), 3.6D (Expedited Project Review), 4.1A (Replacement Housing), and 6.5C -G (Alternate Housing) of the Housing Element 2023-2031, and Title 21: Subdivision and Other Divisions of Land to Incorporate Changes as Directed by Housing and Community Development (HCD). CEQA Status — Revised Addendum to Comprehensive Plan EIR approved November 2023 (SCH 2014052101). Vice Mayor Veenker recused herself from Stanford related portions of this item. City Manager Shikada recused himself from Stanford related portions of this item. MOTION: Councilmember Burt moved, seconded by Councilmember Stone to adopt of Sections 1, 2, and 9 through 11, inclusive, of the proposed ordinance amending various chapters of Title 18 (Zoning) of the Palo Alto Municipal Code to implement the 2023-2031 Housing Element, regarding Housing Element Program 1.5A (Stanford University Lands). MOTION PASSED: 6-0-1, Veenker recused Page 3 of 5 Sp. City Council Meeting Draft Action Minutes: 01/21/2025 Item 4 Page 4 Packet Page 145 of 582 ITEM 4 DRAFT ACTION MINUTES Attachment A MOTION: Councilmember Stone moved, seconded by Mayor Lauing to adopt sections 1 and 3 through 11, inclusive, of the proposed ordinance amending various chapters of Title 18 (Zoning) of the Palo Alto Municipal Code to implement the 2023-2031 Housing Element, regarding Housing Element Programs 3.6D (Expedited Project Review), 4.1A (Replacement Housing), and 6.5C -G (Alternate Housing), and amending Title 21 (Subdivision and Other Divisions of Land) to incorporate changes as directed by Housing and Community Development (HCD) related to Senate Bill 9 implementation. MOTION PASSED: 7-0 9. Selection of Non -Profit Development Partner to Construct a 100% Affordable Housing Project on the City -Owned Parking Lot Located at the Corner of Kipling Street and Lytton Avenue and Direction for Staff to Prepare an Exclusive Negotiating Agreement with Alta Housing to Establish a Partnership Process and Parameters; CEQA status — Not a Project. MOTION: Councilmember Stone moved, seconded by Councilmember Reckdahl to: 1. Direct staff to enter into an exclusive negotiating agreement with Alta Housing. 2. Preliminary direction to staff on key project components that will guide partner design focus for future development and to come back to Council with the following plan: a. Parking scenario A; and b. Up to a 7 -story plan and to maximize the total units maintaining the current ratio of family housing. AMENDMENTS INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER MOTION PASSED: 7-0 Adjournment: The meeting was adjourned at 11:17 P.M. Page 4 of 5 Sp. City Council Meeting Draft Action Minutes: 01/21/2025 Item 4 Page 5 Packet Page 146 of 582 ITEM 4 DRAFT ACTION MINUTES Attachment A 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. Page 5 of 5 Sp. City Council Meeting Draft Action Minutes: 01/21/2025 Item 4 Page 6 Packet Page 147 of 582 ITEM 4 Attachment B CITY COUNCIL CITY OF PALO DRAFT ACTION MINUTES ALTO Special Meeting January 25, 2025 The City Council of the City of Palo Alto met on this date at Mitchell Park Community Center (El Palo Alto Room) and by virtual teleconference at 9:00 A.M. Present In Person: Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Stone, Veenker Present Remotely: Absent: Call to Order City Council Retreat: Discussion and Selection of the 2025 City Council Priorities 1. Welcome by Mayor and City Manager 2. Introductions 3. Discuss Key Inputs: Community Input & 2024 Accomplishments Public Comment Break 4. Selection of 2025 Council Priorities MOTION: Councilmember Burt moved, seconded by Councilmember Lythcott-Haims to set the following as a 2025 Council Priority: • Implementing Housing Strategies for Social & Economic Balance MOTION PASSED: 7-0 Page 1 of 3 Item 4 Page 7 Packet Page 148 of 582 ITEM 4 DRAFT ACTION MINUTES AttachmentB MOTION: Vice Mayor Veenker moved, seconded by Councilmember Burt to set the following as a 2025 Council Priority: • Climate Action & Adaptation, and Natural Environment Protection MOTION PASSED: 7-0 MOTION: Councilmember Lythcott-Haims moved, seconded by Councilmember Reckdahl to set the following as a 2025 Council Priority: • Economic Development and Retail Vibrancy MOTION PASSED: 7-0 MOTION: Councilmember Lythcott-Haims moved, seconded by Councilmember Stone to set the following as a 2025 Council Priority: Public Safety, Wellness & Belonging MOTION PASSED: 7-0 2025 City Council Priorities: • Implementing Housing Strategies for Social & Economic Balance • Climate Action & Adaptation, and Natural Environment Protection • Economic Development and Retail Vibrancy • Public Safety, Wellness & Belonging 5. Initial Discussion of 2025 Objectives Break Page 2 of 3 Sp. City Council Meeting Draft Action Minutes: 01/25/2025 Item 4 Page 8 Packet Page 149 of 582 ITEM 4 DRAFT ACTION MINUTES AttachmentB 6. Discussion of Organizing for Effectiveness MOTION: Mayor Lauing moved, seconded by Councilmember Reckdahl to form the following Brown Act Committee bodies: 0 Climate Action and Sustainability • Retail — (Anticipated to meet every other month) • Rail — (Anticipated to meet every other month) • Cubberley MOTION PASSED: 7-0 7. Next Steps Adjournment: The meeting was adjourned at 3:02 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. Page 3 of 3 Sp. City Council Meeting Draft Action Minutes: 01/25/2025 Item 4 Page 9 Packet Page 150 of 582 Ilt�:118V City Council Staff Report From: City Manager CITY O F Report Type: CONSENT CALENDAR PALO Lead Department: Planning and Development Services ALTO Meeting Date: February 10, 2025 Report #:2410-3618 TITLE Approval of Contract Amendment Number 2 to Contract Number S24189598 with Good City Company in the Amount of $24,930 for a Stream Corridor Protection Ordinance Update; CEQA Status: Exempt Pursuant to CEQA Guidelines 15061(b)(3). RECOMMENDATION Staff recommends the City Council approve and authorize the City Manager or designee to execute Amendment No. 2 to Contract No. S24189598 (Attachment A), with Good City Company, for additional public engagement in the amount not to exceed $24,930 for the Stream Corridor Protection Ordinance Update. This second amendment results in a revised total compensation not -to -exceed $117,223. BACKGROUND The City Council had expressed an urgency for the Stream Corridor Protection Ordinance update, particularly after facing difficulties approving a residential project in the foothills due to the lack of updated creek protection measures. The Planning and Development Services (PDS) faced a significant backlog and staffing shortages, hindering capacity to address this priority promptly. The update will implement creek protection policies outlined in the Comprehensive Plan, which has been a longstanding priority for the City Council. Delays could impact riparian habitat with development encroaching closer to the creek bank. An exemption from competitive solicitation, pursuant to PAMC 2.30.360(b2), and a contract with Good City Company for an amount not to exceed $74,173 was executed to support this priority project. In June 20241, the City Council approved a contract amendment to accommodate a biologist for a revised total not to exceed of $92,293. On October 30, 20242, the Planning and 1 City Council Staff Report (Agenda Item 13): https://cityofpaloaIto.primegov.com/Portal/Meeting?meetingTemplate Id=14311 z Planning and Transportation Commission Staff Report (Agenda Item 2): https://cityofpaloaIto.primegov.com/Portal/Meeting?meetingTemplate Id=13737 Item 5 Page 1 Packet Page 151 of 582 ITEM 5 Transportation Commission (PTC) recommended that staff conduct a community meeting and additional hearings before the City Council considers the ordinance update. These additional meetings will increase the scope and project budget by $24,930. ANALYSIS The PTC, along with several property owners, recommended more opportunities for public input on the proposed ordinance changes, particularly the most recent draft ordinance. Commissioners stated that it is crucial for those directly affected to share their thoughts, ensuring the final ordinance considers community needs. To facilitate this, a dedicated community meeting is scheduled for February 6, 2025, to present the regulations under consideration to those most directly impacted and hear community concerns. The community input will then be presented to PTC for consideration as part of their recommendation to City Council. Furthermore, this proposal includes optional meetings with the PTC and City Council. This flexibility allows for ongoing dialogue and refinement of the ordinance based on community input and evolving project needs. The additional community engagement and optional meetings with the PTC and City Council necessitates an increased budget allocation of $24,930, exceeding the City Manager's contract authority approval limit. This action increases the not to exceed amount of the contract up to $117,223. This amendment is recommended to maintain continuity with the project work and stakeholders thus far. If not approved, the project would likely see a delay as a result of reprioritization of staff work. FISCAL/RESOURCE IMPACT Funding for the contract was included in Planning and Development Services Department Adopted Operating Budget. The amount of $24,930 will be absorbed through the department's FY 2025 operating budget. STAKEHOLDER ENGAGEMENT On March 5, 2024, Good City Company along with the City staff conducted a community information session to hear from the community on potential opportunities and constraints for future development near creek and waterways for consideration in the ordinance update. A total of 17 community members attended the virtual information session to provide their input. Prior to the community information session, Good City Company has contacted and received input from other stakeholders from neighborhood associations and other public agency partners. This input shaped the information provided to the Architectural Review Board on April 4, 2024; and discussed at the August 14, 2024 PTC Study Session. Item 5 Page 2 Packet Page 152 of 582 •Ik1 1 A community meeting is scheduled for February 6, 2025, where staff and consultants will present the project timeline and a summary of current staff recommendations. Community feedback on the staff recommendation will be solicited. ENVIRONMENTAL REVIEW Approval of this contract is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section15061(b)(3) because it can be seen with certainty that this action will not have a significant effect on the environment. ATTACHMENTS Attachment A: Good City Company Contract S24189598 Amendment No. 2 APPROVED BY: Jonathan Lait, Planning and Development Services Director Item 5 Page 3 Packet Page 153 of 582 Docusign Envelope ID: 1 BD1 93BC-1 385-40D9-BF1 9-D73C6AA41664 ITEM 5 Attachment A AMENDMENT NO.2 TO CONTRACT NO. 524189598 BETWEEN THE CITY OF PALO ALTO AND GOOD CITY COMPANY This Amendment No. 2 (this "Amendment") to Contract No. S24189598 (the "Contract" as defined below) is entered into as of February 3rd, 2024, by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and GOOD CITY COMPANY, a California corporation, located at 1351 Laurel Street, San Carlos, CA 94070 ("CONSULTANT"). CITY and CONSULTANT are referred to collectively as the "Parties" in this Amendment. RECITALS A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of updates to Title 16 of the Palo Alto Municipal Code, as detailed therein. B. The Parties now wish to amend the Contract in order to increase compensation by Twenty Four Thousand Five Hundred Thirty Dollars ($24,530) from Ninety -Two Thousand Two Hundred Ninety -Three Dollars ($92,293) to a new total not to exceed compensation of One Hundred Sixteen Thousand Eight Hundred Twenty Three Dollars ($116,823) NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a. Contract. The term "Contract" shall mean Contract No. S24189598 between CONSULTANT and CITY, dated February 5, 2024, as amended by: Amendment No.1, dated June 18, 2024 b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 4 NOT TO EXCEED COMPENSATION of the Contract is hereby amended to read as follows: The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled "COMPENSATION," including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed One Hundred Seven Thousand Eight Hundred Fifty Dollars ($107,850). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled "SCHEDULE OF RATES." Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY. Vers.: Aug. 5, 2019 Page 1 of 12 Item 5 Page 4 Packet Page 154 of 582 Docusign Envelope ID: 1 BD1 93BC-1 385-40D9-BF1 9-D73C6AA41664 ITEM 5 Attachment A ® Optional Additional Services Provision (This provision applies only if checked and a not -to -exceed compensation amount for Additional Services is allocated below under this Section 4.) In addition to the not -to -exceed compensation specified above, CITY has set aside the not -to -exceed compensation amount of Eight Thousand Nine Hundred Seventy Three Dollars ($8,973) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed One Hundred Sixteen Thousand Eight Twenty Three Dollars ($116,823), as detailed in Exhibit C. "Additional Services" means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY's Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled "PROFESSIONAL SERVICES TASK ORDER". Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY's Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter -signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement. SECTION 3. The following exhibit(s) to the Contract is/are hereby amended and added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit "A" entitled "SCOPE OF SERVICES", AMENDED, REPLACES PREVIOUS. Vers.: Aug. 5, 2019 Page 2 of 12 Item 5 Page 5 Packet Page 155 of 582 Docusign Envelope ID: 1 BD1 93BC-1 385-40D9-BF1 9-D73C6AA41664 ITEM 5 Attachment A b. Exhibit "B" entitled "SCHEDULE OF PERFORMANCE", AMENDED, REPLACES PREVIOUS. c. Exhibit "C" entitled "COMPENSATION", AMENDED, REPLACES PREVIOUS. d. Exhibit "C-1" entitled "SCHEDULE OF RATES". AMENDED, REPLACES PREVIOUS. SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) Vers.: Aug. 5, 2019 Page 3 of 12 Item 5 Page 6 Packet Page 156 of 582 Docusign Envelope ID: 1 BD1 93BC-1 385-40D9-BF1 9-D73C6AA41664 ITEM 5 Attachment A SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO City Manager APPROVED AS TO FORM: City Attorney or Designee Attachments: INTEGRATED DESIGN 360, LLC Officer 1 By:1DocuSigned by: 9mv,Q� w 5C6A1A91BD384BA,.. Name: Aaron Aknln Title: President Officer 2 (Required for Corp. or LLC) DocuSigned by: By: 4BA97C548171401... Name: Lisa Costa -Sanders Title: Secretary Exhibit A — Scope of Services, Amendment No.2 (Amended, Replaces Previous) Exhibit B — Schedule of Performance, Amendment No.2 (Amended, Replaces Previous) Exhibit C — Compensation, Amendment No.2 (Amended, Replaces Previous) Exhibit C-1 — Schedule of Rates, Amendment No.2 (Amended, Replaces Previous) Vers.: Aug. 5, 2019 Page 4 of 12 Item 5 Page 7 Packet Page 157 of 582 Docusign Envelope ID: 1 BD1 93BC-1 385-40D9-BF1 9-D73C6AA41664 ITEM 5 Attachment A EXHIBIT "A" SCOPE OF SERVICES, AMENDMENT NO. 2 (AMENDED, REPLACES PREVIOUS) MEMORANDUM & ORDINANCE RECOMMENDATION SERVICE CONSULTANT will complete an existing condition memorandum and prepare a Stream Corridor Ordinance for the CITY based on City Council's recommendations. Task 1: Existing Condition Memorandum CONSULTANT will prepare a memorandum that includes the following criteria: • Project description and objectives; • Existing regulatory framework; • Maps, illustrations, and photos to describe the location, path, and general characteristics of all streams in Palo Alto. The report will include a description of stream characteristics west and east of Foothill Expressway and describe sections that are natural stream habitats, channelized areas, or culverts; and • Identify where buildings have encroached into natural creek settings utilizing aerials maps and field observations. Task 1 Deliverable: CONSULTANT will deliver a draft memorandum for CITY review. Upon CITY and/or City Council reviewed suggestions, CONSULTANT will update finalizing draft to submit to CITY final version. Task 2: Stream Corridor Ordinance CONSULTANT will prepare a draft ordinance revising the Stream Corridor Ordinance for CITY staff and City Council consideration. The proposed ordinance revisions will directly relate to Comprehensive Plan programs N3.3.1, N3.3.2 and N3.3.3. Task 3: Biological Study (Amendment No. 1) Task 3.1 Background Review CONSULTANT will assemble and review available mapping and documentation. This will include the Natural Environment Element and Environment Impact Report on of the CITY's Comprehensive Plan and the current Stream Corridor Protection Ordinance. CONSULTANT will assemble and review mapping from the National Wetland Inventory, the Santa Clara Valley Water District, of existing Assessor Parcels, and available aerial mapping of the City. CONSULTANT will conduct a limited reconnaissance to confirm existing field conditions. This will include a 1 -day field reconnaissance to take photos from public property to demonstrate the range of conditions along protected stream segments, including reaches that have been Vers.: Aug. 5, 2019 Page 5 of 12 Item 5 Page 8 Packet Page 158 of 582 Docusign Envelope ID: 1 BD1 93BC-1 385-40D9-BF1 9-D73C6AA41664 ITEM 5 Attachment A channelized for flood control purposes, locations with natural bank conditions but little riparian cover, and location with well -developed and high value woody riparian vegetation. No detailed field surveys or mapping of existing conditions are proposed as part of this scope. Task 3.2 Background and Planning Considerations (BPC) Report CONSULTANT will summarize and map available data, which will include the following: • Existing conditions of protected streams in the City and result of background review • Maps showing protected streams and results of the background review using available CAD. • Photographs from the field reconnaissance • Estimates of the number of parcels that contain segments of protected streams (if data available) • Estimates of the number of parcels containing stream segments that have been channelized, are in a natural state, or contain high quality woody riparian vegetation, if possible. • Consideration of parcel size for different minimum setbacks (under 0.5 acre, 0.5-2 acres, over 2 acres) CONSULTANT will provide a summary of existing Federal, State and Local Regulations. CONSULTANT will provide a narrative of planning alternatives/considerations and options for consideration by the CITY. CONSULTANT will provide methods/options for providing greater avoidance and protection of the stream and include a summary of other cities on stream setback requirements and exceptions for benchmarking. CONSULATNT will provide recommendations to update or refine the CITY's existing stream ordinance. Task 3.3 Ordinance Refinement CONSULTANT will attend up to three (3) public meetings in person or virtually. Meeting Attendance. CONSULTANT will contribute and complete text revisions to the draft ordinance to ensure creation of final ordinance. Task 4 Public Meetings/Hearings (Amendment No.2) Community Workshop: CONSULTANT will: • Assist with preparation of meeting materials such as presentation slides; • Attend a one -hour preparation meeting with staff; and • Attend the community workshop. CONSULTANT will attend the workshop in person. Planning & TransDortation Commission (PTC) Study Session #2 and #3 (2 meeti Vers.: Aug. 5, 2019 Page 6 of 12 Item 5 Page 9 Packet Page 159 of 582 Docusign Envelope ID: 1 BD1 93BC-1 385-40D9-BF1 9-D73C6AA41664 ITEM 5 Attachment A For both study sessions, CONSULTANT will: • Assist with preparation of meeting materials such as presentation slides and review of staff report; • Attend a one -hour preparation meeting with staff; • Attend a 30 -minute preparation meeting with the PTC chair; and • Attend the PTC study sessions. CONSULTANT will attend the study sessions in person. SUBCONSULTANT will: • Assist with preparation of meeting materials such as presentation slides; • Attend both PTC study sessions in person. Planning & Transportation Commission (PTC) Public Hearing #2 and #3 (2 meetings): For both public hearings, CONSULTANT will: • Assist with preparation of meeting materials such as presentation slides, revision to ordinance, and review of staff report; • Attend a one -hour preparation meeting with staff; • Attend a 30 -minute preparation meeting with the PTC chair; and • Attend the PTC meetings. CONSULTANT will attend the meetings in person. SUBCONSULTANT will: • Assist with preparation of meeting materials such as presentation slides; • Attend both PTC public hearings in person. City Council — Additional Public Hearing #2: In addition to the City Council meeting already in the current agreement, should an additional City Council meeting be needed CONSULTANT will: • Assist with preparation of meeting materials such as presentation slides, revision to ordinance, and review of staff report; • Attend a one -hour preparation meeting with staff; • Attend a 30 -minute preparation meeting with the mayor; and • Attend the meeting. CONSULTANT will attend the meeting in person. SUBCONSULTANT will: • Assist with preparation of meeting materials such as presentation slides; • Attend the additional public hearing in person. Final Ordinance Deliverables CONSULTANT will deliver memorandum and ordinance of CONSULTANT's recommendation draft(s) for CITY review. Upon CITY and/or City Council reviewed suggestions, CONSULTANT will update finalizing drafts to submit to CITY final version of the Stream Corridor memorandum and ordinance recommendation. Vers.: Aug. 5, 2019 Page 7 of 12 Item 5 Page 10 Packet Page 160 of 582 Docusign Envelope ID: 1 BD1 93BC-1 385-40D9-BF1 9-D73C6AA41664 ITEM 5 Attachment A * 4.II*IIA-3 SCHEDULE OF PERFORMANCE, AMENDMENT NO. 2 (AMENDED, REPLACES PREVIOUS) Completion Dates Milestones (as specified below) from NTP 1. Memorandum & Ordinance of Recommendation Service March 2024 Task #1 Deliverable - Draft Stream Corridor Existing Condition Memorandum 2. Memorandum & Ordinance Recommendation Service March 2024 Task #2 Deliverable - Draft Stream Corridor Ordinance Recommendations 3. Biological Study (Amendment No.1) June 2024 Task #3 Deliverable - Background and Planning Considerations (BPC) Report 4. Memorandum & Ordinance Development Service June 2025; as directed by CITY Project Manager Task# 1 Deliverable within term of - Final Draft Existing Condition Memorandum Agreement 5. Public Meetings/Hearings (Amendment No. 2) June 2025; as directed by CITY Project Manager Task #4 Deliverable within term of - Complete meetings Agreement 6. Memorandum & Ordinance Recommendation June 2025; as directed by CITY Project Manager Task #2 Deliverable within term of - Final Draft Stream Corridor Ordinance Recommendations Agreement ® Optional Schedule of Performance Provision for On -Call or Additional Services Agreements. (This provision only applies if checked and only applies to on -call agreements per Section 1 or agreements with Additional Services per Section 4.) The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on -call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement. Vers.: Aug. 5, 2019 Page 8 of 12 Item 5 Page 11 Packet Page 161 of 582 Docusign Envelope ID: 1 BD1 93BC-1 385-40D9-BF1 9-D73C6AA41664 ITEM 5 Attachment A [* 4 IIR]Ifo COMPENSATION, AMENDMENT NO. 2 (AMENDED, REPLACES PREVIOUS) CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for each task set forth below. CITY's Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below, provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. BUDGET SCHEDULE Memorandum & Ordinance of Recommendation Service — Task 1 thru 4 Deliverables (hourly budget rates) Title Rate Hours Cost Planning Director $230 150 $34,500 Senior Planner/Project Manager $170 65 $11,050 Principal Planner $195 32 $6,240 Principal $260 32 $8,320 Associate Planner $135 32 $4,320 Marketing Specialist/Graphic Designer $100 30 $3,000 Task 1 & 2 Sub -total for Services $67,430 Task 3 - Amendment No. 1 Biological Study (Task 3.1 thru 3.3) $195 76 $14,820 Task 4— Amendment No. 2 Advance Planning Director $230 49 $11,270 Senior Planner $170 19 $3,230 Biologist $195 40 $7,800 Task 4 Sub -total for Services $22,300 Reimbursable Expenses (if, any) $3,300 Total for Services and Reimbursable Expenses $107,850 Additional Services (if any, per Section 4) $8,973 Maximum Total Compensation $116,823 Vers.: Aug. 5, 2019 Page 9 of 12 Item 5 Page 12 Packet Page 162 of 582 Docusign Envelope ID: 1 BD1 93BC-1 385-40D9-BF1 9-D73C6AA41664 ITEM 5 Attachment A REIMBURSABLE EXPENSES CONSULTANT'S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: mapping solutions, mileage and travel up to the not -to -exceed amount of: $3,300.00. All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information. Vers.: Aug. 5, 2019 Page 10 of 12 Item 5 Page 13 Packet Page 163 of 582 Docusign Envelope ID: 1 BD1 93BC-1 385-40D9-BF1 9-D73C6AA41664 ITEM 5 Attachment A EXHIBIT C-1 SCHEDULE OF RATES, AMENDMENT NO. 2 (AMENDED, REPLACES PREVIOUS) CONSULTANT's schedule of rates for Additional Services per Section 4 is as follows: CITY and CONSULTANT may at any time mutually agree to add new position titles, rates, and adjust listed rates so long as the changes do not increase the not to exceed compensation amount as specified in Section 4 of the Agreement. 2024 Rates Principal/Partner $260/hour Planning Director $230/hour Principal Planner/Planning Manager $195/hour Economic Development Director $230/hour Public Policy Manager $225/hour Chief Building Official $170/hour Senior Planner/Project Manager $170/hour Housing Services Consultant $170/hour Associate Planner $140/hour Assistant Planner $130/hour Planning Technician $100/hour Marketing Specialist/Graphic Designer $100/hour Administrative Specialist $90/hour Biologist $195/hour 2025 Rates Principal/Partner $270/hour Planning Director $240/hour Principal Planner/Planning Manager $205/hour Economic Development Director $240/hour Public Policy Manager $225/hour Chief Building Official $180/hour Senior Planner/Project Manager $176/hour Housing Services Consultant $176/hour Associate Planner $150/hour Assistant Planner $135/hour Planning Technician $105/hour Marketing Specialist/Graphic Designer $105/hour Administrative Specialist $95/hour Biologist $195/hour Vers.: Aug. 5, 2019 Page 11 of 12 Item 5 Page 14 Packet Page 164 of 582 Docusign Envelope ID: 1 BD1 93BC-1 385-40D9-BF1 9-D73C6AA41664 ITEM 5 Attachment A Subconsultant Contracts Direct Billing + 10% oversight fee (if applicable) will be detailed in Task Order (Exhibit A-1) form in accordance to Section 4 of the Agreement. Rates subject to adjustment January 1st of each year (up to and not to exceed 3-7% increase) Vers.: Aug. 5, 2019 Page 12 of 12 Item 5 Page 15 Packet Page 165 of 582 ITEM 6 City Council Staff Report From: City Manager CITY O F Report Type: CONSENT CALENDAR PALO Lead Department: Utilities ALTO Meeting Date: February 10, 2025 Report #:2409-3452 TITLE Approval of Contract Amendment Number Three to Contract Number C21177024 With Veolia Sustainable Buildings USA West, Inc. to Extend the Contract Time Through August 14, 2026 With No Change in the Amount Not -to -Exceed of $1,985,000 for the Commercial & Industrial Energy Efficiency Program. CEQA - Not a Project RECOMMENDATION Staff recommends that the City Council approve and authorize the City Manager or their designee to execute Amendment No. 3 to Contract C21177024 with Veolia (Attachment A) for a contract extension of 18 months through August 14, 2026 to continue providing energy efficiency services including optional additional services offerings for the Commercial and Industrial Energy Efficiency Program. This amendment does not revise the not -to -exceed (NTE) amount of $1,985,000 from the original contract. BACKGROUND The Commercial & Industrial (C&I) Energy Efficiency Program (CIEEP), administered by Veolia (formerly Enovity), has supported the City of Palo Alto Utilities' (CPAU) largest commercial customers since its launch in 2009. This program is CPAU's sole initiative for these key customers, who account for almost 80% of the City's electric sales (this includes master metered multifamily properties and multifamily common area electricity usage). Veolia (service provider) has effectively delivered CIEEP services through marketing, outreach, and technical assistance, playing a critical role in helping CPAU meet its energy savings goals. Excluding green building code savings and electrification project savings, Veolia and other Small Medium Business (SMB) commercial sector contractors contributed approximately 96% of CPAU's gross electric savings, as detailed in the annual SB1037 Status Report1. 1 SB 1037 Status Report, Annual Report 2022. https://www.cmua.org/files/2022%20POU%2OEnergy%2OEfficiency%2OReport%2OFinal.pdf Item 6 Page 1 Packet Page 166 of 582 ITEM 6 City Council has adopted several policies to support funding programs that maximize the deployment of cost-effective, reliable, and feasible energy efficiency (EE) measures as outlined in the City's 10 Year Energy Efficiency Goals (Staff Report # 120682 Updated 10 Year Energy Efficiency Goals2) adopted by Council in 2021. To achieve these energy efficiency goals, the City has partnered with third -party service providers since 2006, expanding services to C&I customers. These partnerships have led to a variety of successful projects, such as building energy management systems, retro-commissioning, lighting upgrades, HVAC system improvements, and industrial process optimization. C&I customers have deliver the most cost- effective EE savings within the City's portfolio and in 2023, the annual EE energy savings delivered by Veolia's C&I program totaled 372,193kWh, or 59% of all Gross Energy Savings. In 2022, Council adopted the ambitious goal of reducing the community's greenhouse gas (GHG) emissions 80% below 1990 levels by 2030 ("80x30" goal) as part of the City's initial Sustainability and Climate Action Plan, Implementation Work Plan (2023 — 2025) framework3. To meet the '80x30' goal, the City must reduce natural gas use by prioritizing the electrification of commercial rooftop packaged heating, ventilation, and air conditioning (HVAC) systems. Additionally, the City is focusing on electrifying its buildings and operations. There are significant barriers to electrification of commercial buildings, including customer uncertainty about electric technology, shortage of knowledgeable engineers and contractors, high upfront costs, and complexities related to electric service upgrades. Despite these challenges, CIEEP remains essential for supporting C&I customers and achieving the City's EE and sustainability goals, particularly in the transition off of natural gas to meet S/CAP targets. ANALYSIS Council approval of the proposed amendment will enable the City to continue to pursue aggressive energy efficiency and electrification projects with C&I customers extending services through August 14, 2026. The proposed amendment includes a provision for continued services which can provide several benefits including: 1. Project initiation support, including comprehensive decarbonization assessments, engineering designs, and electrification roadmaps; and 2. A mechanism for ongoing support and optimization, which can help drive customer engagement and project adoption. 2 Staff Report #12068 Updated 10 Year Energy Efficiency Goals https://www.cityofpaloaIto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/Vea r-archive/2021/id-12068.pdf 3 Sustainability Climate Action Plan, Implementation Work Plan (2023 — 2025) https://www.cityofpaloalto.org/City-Hall/Sustainability/SCAP Item 6 Page 2 Packet Page 167 of 582 Veolia services assist in ensuring CPAU meets state -mandated energy savings and C02 reduction goals. They deliver certified professional services and in -person assessments that our internal staff cannot provide. The service provides certified energy managers who conduct thorough on -site evaluations, recommend tailored equipment upgrades, and deliver custom reports that drive energy -savings. Beyond traditional recommendations, an emphasis is placed on electrification measures, focusing on replacing aging gas equipment to align with current decarbonization priorities. Retro-commissioning services and post -installation inspections ensure energy -saving projects are executed accurately, with data loggers enabling precise savings calculations. The expertise and tooling required for these services exceeds staff qualifications. This contract, executed in August 2020, was significantly impacted by COVID-19, as in -person visits are essential to its success. Participation has rebounded, with 20 active projects in the pipeline. Although staff suggests extending the contract term, we do not recommend increasing the original budget or hourly rates. The total contract value is intentionally high to accommodate large-scale projects, which can cost hundreds of thousands of dollars and take years for full implementation. The budget reflects the irregular size and timeline of projects in this sector, and the remaining contract budget is not expected to be fully used. Veolia has demonstrated exceptional project management skills, ensuring that all projects are executed efficiently and effectively with positive feedback from customers. Notable Projects Completed with Veolia: flP•Ir Stanford Medicine Air Handling Unit 264,700 64,000 Cancer Center Controls Upgrade Lucile Packard Children's Lighting Project 33,500 1,700 Hospital The Westin Hotel Ozone Laundry System 14,000 18,000 *The average California household consumes approximately 6,700kwh of electricity and 360 therms of gas annually. If Council does not approve the proposed amendment, staff will still work to initiate an Request for Proposal (RFP) however, during this time the program for C&I customers would be suspended while a new contract is negotiated. The next RFP will focus on enhancing project workflows and ensuring smooth coordination between Development Services permitting, and Electrical Engineering reviews. A streamlined process will be critical in driving successful electrification implementation. FISCAL/RESOURCE IMPACT Item 6 Page 3 Packet Page 168 of 582 ITEM 6 The funding for this contract is available in the FY 2025 Utilities budget and allocated within the existing CIEEP program and funded by Public Benefits4. Council approval of the proposed amendment will have no additional financial impact as the total NTE contact amount of $1,985,000 remains unchanged from the original contract executed on August 16, 2021. As of October 2024, there is approximately $1,580,000 remaining in the original contract C21177024. STAKEHOLDER ENGAGEMENT Since August 2021, following the implementation of a contract for a Commercial & Industrial (C&I) program with Veolia, staff and Veolia have actively engaged with customers to gauge their interest in electrification. Initially, customer interest in electrification was low, and this feedback proved invaluable in designing targeted rebates to support equipment electrification. In October 2021, staff presented an overview of non-residential electrification to the S/CAP Ad Hoc Committee. When City Council identified the conversion of rooftop gas pack units to heat pump HVAC systems as a cost-effective and high -impact measure, staff developed a program tailored to this need, which was presented to the S/CAP Working Group in September 2023. Since then, staff has conducted workshops for commercial customers and hosted facility manager meetings and trainings, featuring successful electrification projects, electric alternatives, and equipment manufacturers. Staff has also collaborated with neighboring Community Choice Aggregations and utilities, which face similar challenges in the electrification of commercial buildings. ENVIRONMENTAL REVIEW The proposed amendment is categorically exempt under the California Environmental Quality Act (CEQA) n under Section 15301 (Existing Facilities) and Section 15304 (Minor Alterations to Land). ATTACHMENTS Attachment A: Veolia Contract C21177024, Amendment No. 3 APPROVED BY: Alan Kurotori, Utilities Chief Operating Officer Staff: Jesus Prado, Key Accounts Representative ' Public Benefit: he City of Palo Alto Utilities (CPAU) receives public benefit funds through a combination of state and federal programs, grants, and utility ratepayer contributions. These funds are allocated to support various programs and services aimed at promoting energy efficiency, renewable energy, and assistance for low-income residents including programs for business customers such as CIEEP. Item 6 Page 4 Packet Page 169 of 582 Docusign Envelope ID: D73BAAAA-F3E5-45F6-8897-6C2BA21E8C48 ITEM 6 Attachment A AMENDMENT NO. 3 TO CONTRACT NO. C21177024 BETWEEN THE CITY OF PALO ALTO AND VEOLIA SUSTAINABLE BUILDINGS USA WEST, INC. This Amendment No. 3 (this "Amendment") to Contract No. C21177024 (the "Contract" as defined below) is entered into as of January 21, 2025 by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and VEOLIA SUSTAINABLE BUILDINGS USA WEST, INC., a California corporation, located at 53 State Street, 14th Floor, Boston, Massachusetts 02109, Telephone Number: (415) 974-0390 ("CONSULTANT"). CITY and CONSULTANT are referred to collectively as the "Parties" in this Amendment. RFCITAI C A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of developing and implementing a Commercial and Industrial Energy Efficiency Program to improve energy performance and reduce greenhouse gas emissions related to fossil fuel consumption, as detailed therein. B. The Parties now wish to amend the Contract in order to extend the term by 18 months, changing the expiration date from February 15, 2025 to August 14, 2026 with no change to the original contract amount. C. The Parties now wish to amend the Contract in order to add Optional Additional Services Provision. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a. Contract. The term "Contract" shall mean Contract No. C21177024 between CONSULTANT and CITY, dated August 16, 2021, as amended by: Amendment No.1, dated July 8, 2024 Amendment No. 2, dated July 30, 2024 b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 2 "TERM" of the Contract is hereby amended to read as follows: "SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through August 14, 2026 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement." Vers.: Aug. 5, 2019 Page 1 of 6 Item 6 Page 5 Packet Page 170 of 582 Docusign Envelope ID: D73BAAAA-F3E5-45F6-8897-6C2BA21E8C48 ITEM 6 Attachment A SECTION 3. Section 4 "NOT TO EXCEED COMPENSATION" of the Contract is hereby amended to read as follows: "SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled "COMPENSATION," including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed One Million Seven Hundred Eighty -Six Thousand Five Hundred Dollars ($1,786,500.00). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled "SCHEDULE OF RATES." Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY. ® Optional Additional Services Provision (This provision applies only if checked and a not -to -exceed compensation amount for Additional Services is allocated below under this Section 4.) In addition to the not -to -exceed compensation specified above, CITY has set aside the not -to -exceed compensation amount of One Hundred Ninety -Eight Thousand Five Hundred Dollars ($198,500.00) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed One Million Nine Hundred Eighty -Five Thousand Dollars ($1,985,000.00) as detailed in Exhibit C. "Additional Services" means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY's Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled "PROFESSIONAL SERVICES TASK ORDER". Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY's Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter -signature by the CITY Project Manager), the Vers.: Aug. 5, 2019 Page 2 of 6 Item 6 Page 6 Packet Page 171 of 582 Docusign Envelope ID: D73BAAAA-F3E5-45F6-8897-6C2BA21E8C48 ITEM 6 Attachment A fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement. " SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit "A-1" entitled "PROFESSIONAL SERVICES TASK ORDER", AMENDED, ADDED. b. Exhibit "B" entitled "SCHEDULE OF PERFORMANCE", AMENDED, REPLACES PREVIOUS. SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 6. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) Vers.: Aug. 5, 2019 Page 3 of 6 Item 6 Page 7 Packet Page 172 of 582 Docusign Envelope ID: D73BAAAA-F3E5-45F6-8897-6C2BA21E8C48 ITEM 6 Attachment A SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO City Manager APPROVED AS TO FORM: City Attorney or designee Attachments: VEOLIA SUSTAINABLE BUILDINGS USA WEST, INC. Signed by: B :tll F248005893874A4... David Baritot Name: Title: Director, Project Management Office DocuSiiggnnedd jbby: 410113506528410... Jack Griffin Name: Title: senior vice President Exhibit "A-1" entitled "PROFESSIONAL SERVICES TASK ORDER", ADDED. Exhibit "B" entitled "SCHEDULE OF PERFORMANCE", AMENDED, REPLACES PREVIOUS. Vers.: Aug. 5, 2019 Page 4 of 6 Item 6 Page 8 Packet Page 173 of 582 Docusign Envelope ID: D73BAAAA-F3E5-45F6-8897-6C2BA21E8C48 ITEM 6 Attachment A EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER AMENDMENT NO. 3, ADDED CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAYBESAMEAS CONTRACT/P.O. NO. ABOVE): 1B. TASK ORDER NO.: 2. CONSULTANT NAME: 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $ 5. BUDGET CODE COST CENTER COST ELEMENT W BS/CI P PHASE 6. CITY PROJECT MANAGER'S NAME & DEPARTMENT: 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) RAI IcT IMrI I InW. SERVICES AND DELIVERABLES TO BE PROVIDED SCHEDULE OF PERFORMANCE MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) REIMBURSABLE EXPENSES, if any (with "not to exceed" amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY: Name Title Date I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: BY: Name Title Date Vers.: Aug. 5, 2019 Page 5 of 6 Item 6 Page 9 Packet Page 174 of 582 Docusign Envelope ID: D73BAAAA-F3E5-45F6-8897-6C2BA21E8C48 ITEM 6 Attachment A *3:11-i�i.1 SCHEDULE OF PERFORMANCE AMENDMENT NO. 3, AMENDED, REPLACES PREVIOUS CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed ("NTP") from the CITY. Milestones Completion Number of Days/Weeks (as specified below) from NTP 1. Project (Program) Initiation Meeting Two weeks 2. Develop (Update) Program Plan Six weeks 3. Develop (Update) Program Documents 4. Develop (Updated) Invoicing and 5. (Re) Launch Program Eight weeks Eight weeks Reporting Tools Ten weeks 6. Enroll Customers Ongoing 7. Install and Verify Resource Measures Ongoing 8. Reporting Ongoing ® Optional Schedule of Performance Provision for On -Call or Additional Services Agreements. (This provision only applies if checked and only applies to on -call agreements per Section 1 or agreements with Additional Services per Section 4.) The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on -call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement. Vers.: Aug. 5, 2019 Page 6 of 6 Item 6 Page 10 Packet Page 175 of 582 ITEM 6 Attacl OdOcuslgn_ Certificate Of Completion Envelope Id: D73BAAAAF3E545F688976C2BA21 E8C48 Subject: Complete with Docusign: Amendment No. 3 draft C21177024_Veolia_final.pdf Source Envelope: Document Pages: 6 Signatures: 2 Certificate Pages: 2 Initials: 0 AutoNav: Enabled Envelopeld Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) Record Tracking Status: Original 12/10/2024 7:55:01 AM Security Appliance Status: Connected Storage Appliance Status: Connected Signer Events David Baritot david.baritot@veolia.com Director, Project Management Office veoliaNA Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Jack Griffin jack.griffin@veolia.com Senior Vice President Veolia Sustainable Buildings USA East (fka SourceOne, Inc (DE) Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Editor Delivery Events Agent Delivery Events Intermediary Delivery Events Certified Delivery Events Carbon Copy Events Hiromi Kelty Hiromi.kelty@CityofPaloAlto.org Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Holder: Annmarie Romero annmarie.romero@cityofpaloalto.org Pool: StateLocal Pool: City of Palo Alto Signature [Si,nby: ,d t fbf F248005893874A4... Signature Adoption: Pre -selected Style Using IP Address: 24.147.123.48 DocuSigned by 4101135`. Signature Adoption: Drawn on Device Using IP Address: 38.122.253.74 Signature Status Status Status Status Status COPIED Status: Completed Envelope Originator: Annmarie Romero 250 Hamilton Ave Palo Alto, CA 94301 annmarie.romero@cityofpaloalto.org IP Address: 199.33.32.254 Location: DocuSign Location: DocuSign Timestamp Sent: 12/10/2024 7:59:04 AM Viewed: 12/10/2024 8:06:36 AM Signed: 12/10/2024 8:07:23 AM Sent: 12/10/2024 8:07:24 AM Viewed: 12/10/2024 8:21:40 AM Signed: 12/10/2024 10:35:16 AM Timestamp Timestamp Timestamp Timestamp Timestamp Timestamp Sent: 12/10/2024 10:35:17 AM Item 6 Page 11 Packet Page 176 of 582 ITEM 6 Carbon Copy Events Status Timestamp Attachment A Jesus Prado PI E Sent: 12/10/2024 10:35:18 AM Jesus.Prado@CityofPaloAlto.org Key Accounts Manager Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Kaylee Burton PI E Sent: 12/10/2024 10:35:18 AM Kaylee.Burton@CityofPaloAlto.org Viewed: 12/10/2024 10:43:17 AM UTL COPA Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 12/10/2024 7:59:04 AM Certified Delivered Security Checked 12/10/2024 8:21:40 AM Signing Complete Security Checked 12/10/2024 10:35:16 AM Completed Security Checked 12/10/2024 10:35:18 AM Payment Events Status Timestamps Item 6 Page 12 Packet Page 177 of 582 City Council Staff Report From: City Manager CITY O F Report Type: CONSENT CALENDAR PALO Lead Department: Utilities ALTO Meeting Date: February 10, 2025 Report #:2407-3199 TITLE Approval of Amendment Number Three (3) to Contract Number C19174648 with WaterSmart Software, Inc. (dba WaterSmart) for the WaterSmart Utilities Customer Portal, to Extend the Contract Term for 18 Months, for the Total Not -to -Exceed Amount of $537,763 Over the Seven - Year Term; CEQA status —Exempt under CEQA Guidelines Section 15308. RECOMMENDATION Staff recommends that the City Council approve and authorize the City Manager, or their designee, to execute Amendment No. 3 (Attachment A) to Contract C19174648 with WaterSmart Software, Inc (dba WaterSmart) for the existing WaterSmart Utilities customer portal, to extend the contract term by an additional one year and six months to a 7 -year term, and to adopt a new Exhibit C to modify the compensation structure of the contract. No additional financial authority is requested as part of this contract amendment. EXECUTIVE SUMMARY Staff is seeking approval for contract amendment No. 3 to extend the WaterSmart contract term 18 months and to modify the compensation structure of the contract. The WaterSmart customer portal provides customers with information about water consumption and personalized water conservation recommendations. Through WaterSmart, home water reports are sent to single-family customers on a monthly basis. WaterSmart helps the City achieve state and local water conservation and efficiency objectives. The 5 -year contract was set to end on August 12, 2024. Amendment No. 2 extended the contract term to February 12, 2025. An additional contract extension of one year and six months will allow customers to continue to receive home water reports and access the online portal through August 12, 2026. This contract amendment will have no budget impact and will not increase the Contract NTE. There is sufficient funds to cover the 1 year and 6 months extension. BACKGROUND State requirements and Council policies have resulted in aggressive water reduction goals which are largely achieved through conservation and efficiency programs. WaterSmart fully Item 7 Page 1 Packet Page 178 of 582 launched for City of Palo Alto Utilities (CPAU) customers in November 2022 and is a valuable tool for customers to receive monthly home water reports with personalized water conservation recommendations and view their monthly and hourly water consumption through the online portal. WaterSmart is integrated with the City's Utility billing portal MyCPAU through a single sign -on feature; this enables customers to view both their billing and consumption data for both energy and water usage by logging in to one portal. After a public procurement process, the City entered into a 5 -year contract with WaterSmart on August 12, 20191. Two amendments to this contract were previously approved, to adjust the payment schedule in Appendix C (March 2022) and authorized a 6 -month extension. WaterSmart's launch occurred in November 2022, delayed by staffing changes and administrative challenges resulting in two years of full use of contracted services. This Amendment No. 3 would extend the contract term to August 12, 2026allowing for the issuance of an REP to ensure both the evaluation of tools in the market place and continuity of services similar to the WaterSmart program for CPAU customers. Since WaterSmart launched in November 2022, 24% of all CPAU customers have accessed the portal and 29% of all single-family customers have accessed the portal. Through this program, home water reports providing benchmarking comparisons are sent to around 11,000 single- family customers on a monthly basis. A control group of around 4,000 single-family customers currently do not get reports. The average open rate of home water report emails is 74%. The portal includes a utility analytics dashboard to help track water savings and engagement. Preliminary results from the efficiency study show that customers receiving home water reports achieve water savings of 3.4% compared to the control group. To date, the City has saved approximately 23.2. MG through the WaterSmart program. In April 2023, the City launched courtesy alerts through WaterSmart to notify customers of potential leaks based on their monthly billed consumption. In the alert email, customers are prompted to utilize a self-service tool that explains how to find and fix common leaks. In August 2024, WaterSmart was connected to the City's hourly Advanced Metering Infrastructure (AMI) data. This integration will provide timely leak alerts and high -usage notifications to customers. ANALYSIS Staff is dedicated to improving the functionality of the WaterSmart portal to provide customers with easy access to utility information and to help make informed decisions on water usage in order to meet the City's water conservation goals. Valley Water's landscape rebate programs and other City incentives are promoted through WaterSmart to target audiences. Targeted emails are also sent through WaterSmart to relay information about upcoming events, new conservation programs, etc. 1 Contract Approved on August 12, 2019 https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes- reports/agendas-minutes/city-council-agendas-minutes/00-archive/2019/watersmart-contract.pdf Item 7 Page 2 Packet Page 179 of 582 ITEM 7 Summary of Proposed Contract Terms Staff recommends extending the term of the current WaterSmart contract by 18 months and updating Exhibit C Compensation. Amendment No. 3 tailors the compensation structure according to software functionality and transactions such as the number of print reports sent. The proposed annual not -to -exceed amount under Amendment No. 3 is $96,750 per year, this is within the total not to exceed contract amount authorized by Council of $537,763. I aole l: Hmenament No. s txnIDlt L compensation .. . . . . VertexOne Digital Base $4,500 $4,500 $4,500 $4,500 $18,000 VXsmart - $0.80 x 21,000 (total # of $4,200 $4,200 $4,200 $4,200 $16,800 accounts) Home Water Reports Base $240 $240 $240 $240 $960 Home Water Reports Variable - $50 $50 $50 $50 $200 $0.01280 for each account receiving reports (est. 15,625) SSO for End Customer Base $3,250 $3,250 $3,250 $3,250 $13,000 SSO for End Customer Variable - $169 $169 $169 $169 $674 $0.03207 for each account (est. 21,000) Transactional Fees - Estimated cost of $11,779 $11,799 $11,799 $11,799 $47,116 all transactional fees, plus a buffer FISCAL/RESOURCE IMPACT Funding for this amendment, totaling $53,000, for FY 2025 is available in the FY 2025 Utilities Department Water Funds. Funding for the following years will be evaluated during the annual budget process. Through the City's cost -sharing agreement with Valley Water, Contract 5231859762, Valley Water will reimburse the City up to $25,000/year for Water Reports. The below table is a breakdown of pricing and remaining contract budget. The City is currently in year six of the contract; the estimated total cost totaling $192,638 will cover the service needs for the remainder of the contract term (18 months). 2 Contract S23185976 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82408 Item 7 Page 3 Packet Page 180 of 582 ITEM 7 ii 1 71 I '. Total Billed during Contract Year 1 through Q2 Year 6 $345,125 Estimated Total Cost — Q3 Year 6 through O4 Year 7 (details below) $192,638 • Year 6 Q3 and Q4 Sub Total (Estimated annual cost minus amount services billed Q1 and Q2) (Amendment No. 3) $53,000 • Year 7 Sub Total (Amendment No. 3) $96,750 • Additional Services Budget Remaining $42,888 Total Contract Not to Exceed $537,763 POLICY IMPLICATIONS WaterSmart helps the City achieve state and local water conservation and efficiency objectives. The proposed Amendment No. 3 continues offering the water conservation programs consistent with the 2020 Urban Water Management Plan (Staff Report #12025)3, the Utilities Strategic Plan, and the City's Sustainability and Climate Action Plan (S CAP)4. In addition, WaterSmart helps the City meet the requirements outlined in the agreement with Valley Water, Contract S23185976 (Staff Report # 2304-13805), which provides funding for AMI and water reports. STAKEHOLDER ENGAGEMENT Palo Alto markets the WaterSmart program though the City's websites, at community events, via bill inserts, other social media, and newsletters. ENVIRONMENTAL REVIEW Council's approval of this term agreement for subscription licensing and professional services supporting water conservation is categorically exempt from the California Environmental Quality Act (CEQA) review under CEQA Guidelines section 15308 because it is an action for the protection of the environment. ATTACHMENTS Attachment A: WaterSmart Software, Inc. Contract C19174648 Amendment No. 3 APPROVED BY: Kiely Nose, Interim Utilities Director Staff: Linda Grand, Utilities Programs Administrator 3 Staff Report #12025 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city- manager-reports-cmrs/year-archive/2021/id-12025.pdf 4 S/CAP https://www.cityofpaloalto.org/files/assets/public/v/1/sustainability/reports/2023-2025-scap-work- plan final.pdf 5 Staff Report #2304-1380 https://recordsportal.paloaIto.gov/WebIink/DocView.aspx?id=82408 Item 7 Page 4 Packet Page 181 of 582 Docusign Envelope ID: CF2FCE46-EF20-4D73-A7A3-34C035462BA5 ITEM 7 Attachment A AMENDMENT NO. 3 TO CONTRACT NO. C19174648 BETWEEN THE CITY OF PALO ALTO AND WATERSMART SOFTWARE, INC. This Amendment No. 3 (this "Amendment") to Contract No. C19174648 (the "Contract" as defined below) is entered into as of February 10, 2025 by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and WATERSMART SOFTWARE, INC., a Delaware Public Benefit corporation, located at 20 California Street, Suite 200, San Francisco, California 94111 ("CONSULTANT" or "WATERSMART"). CITY and CONSULTANT are referred to collectively as the "Parties" in this Amendment. RFCITAI C A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of providing hosted software services, program administration, and support, for an online water efficiency platform, as detailed therein. B. The Parties entered into Amendment No. 1 on March 1, 2022 to update the launch effective date, revise Task 1.2 of the Scope of Services, and clarify compensation. C. The Parties entered into Amendment No. 2 on August 12, 2024, to extend the contract term by six months, from August 12, 2024 to February 12, 2025. D. The Parties now wish to amend the Contract in order to extend the term by one year and six months, from February 12, 2025 to August 12, 2026, update the Scope of Services, and amend compensation terms without increasing the total Not -to -Exceed Compensation. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a. Contract. The term "Contract" shall mean Contract No. C19174648 between CONSULTANT and CITY, dated August 12, 2019, as amended by: Amendment No. 1, dated March 1, 2022 Amendment No. 2, dated August 12, 2024 b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 2, "TERM" of the Contract is hereby amended to read as follows: Vers.: Aug. 5, 2019 Page 1 of 16 Item 7 Page 5 Packet Page 182 of 582 Docusign Envelope ID: CF2FCE46-EF20-4D73-A7A3-34C035462BA5 ITEM 7 Attachment A "The term of this Agreement shall be from the date of its full execution through, August 12, 2026 unless terminated earlier pursuant to Section 19 of this Agreement." SECTION 3. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit "A" entitled "SCOPE OF SERVICES, AMENDMENT NO. 3, AMENDED, REPLACES PREVIOUS. b. Exhibit "C" entitled "COMPENSATION, AMENDMENT NO. 3", AMENDED, REPLACES PREVIOUS. SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) Vers.: Aug. 5, 2019 Page 2 of 16 Item 7 Page 6 Packet Page 183 of 582 Docusign Envelope ID: CF2FCE46-EF20-4D73-A7A3-34C035462BA5 ITEM 7 Attachment A SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO City Manager APPROVED AS TO FORM: City Attorney or Designee WATERSMART SOFTWARE, INC. DocuSigned by: Bf2 0AE534845D0744D... Name:...._. �.. Title: CEO DocuSigned by: 2529h41Foe r s to r Name: Title: CFO Attachments: EXHIBIT "A" entitled "SCOPE OF SERVICES, AMENDMENT NO. 3" (AMENDED, REPLACES PREVIOUS) EXHIBIT "C" entitled "COMPENSATION, AMENDMENT NO. 3" (AMENDED, REPLACES PREVIOUS) Vers.: Aug. 5, 2019 Page 3 of 16 Item 7 Page 7 Packet Page 184 of 582 Docusign Envelope ID: CF2FCE46-EF20-4D73-A7A3-34C035462BA5 ITEM 7 Attachment A EXHIBIT "A" SCOPE OF SERVICES, AMENDMENT NO. 3 (AMENDED, REPLACES PREVIOUS) A. PROGRAM OVERVIEW Name Water Efficiency Program and Platform Brief Program Description WaterSmart Software ("CONSULTANT") is a customer engagement and analytics platform. The City of Palo Alto ("CITY") has contracted with CONSULTANT to implement a customer engagement program to achieve water efficiency for CITY customers. The program is comprised of the following elements: • Software Service o CITY Analytics Dashboard: Analytics, customer support tools and Program performance data for CITY staff o Customer Portal: Online engagement, efficiency tips, and water consumption and cost profiles for all CITY customers • Residential Home Water Efficiency Program o Customer Letters: Customized communications mailed or emailed to each participant o Efficiency Study: Treatment and control group will be maintained throughout the duration of the program and will be studied to determine program water savings B. PROGRAM IMPLEMENTATION AND DELIVERY The following outlines the Program design and implementation plan applicable to CONSULTANT including but not limited to: Task 1- SOFTWARE SERVICE Task 1.1 Data Transfer and CITY Obligations: • CONSULTANT will conduct data call with CITY IT resources to determine data transfer protocol, content and frequency. • CONSULTANT will provide the secure file transfer protocol (SFTP) site for data exchange • CITY will make IT resources available to securely transfer a dataset on accounts, including but not limited to account information, consumption history, ongoing feeds of current consumption, and AMI Interval Information when available. • CITY will provide data in CSV (,), tab -delimited (\t), or pipe -delimited (I) Vers.: Aug. 5, 2019 Page 4 of 16 Item 7 Page 8 Packet Page 185 of 582 Docusign Envelope ID: CF2FCE46-EF20-4D73-A7A3-34C035462BA5 ITEM 7 Attachment A format. When applicable after CITY's AMI expansion, CONSULTANT will initiate and automate data transfer between Meter Data Management System (MDM) and CONSULTANT, validate AMI data set, display AMI data in Customer Portal and Analytics Dashboard and Customize AMI leak settings and Initiate leak alerts based on AMI data, as desired by CITY. Task 1.2 Customer Portal provided by VertexOne Digital Base • CONSULTANT will work with CITY to configure the Customer Portal with CITY logo and contact information. • CITY will approve or exclude any recommendations shown in the Customer Portal and provide CONSULTANT with information on available rebates and incentives and program participation data. • CITY will provide consolidated feedback and final approvals to CONSULTANT Task 1.3 Analytics Dashboard provided by VXsmart • CONSULTANT will maintain a dashboard accessible to CITY employees and assigned customer service representatives which includes EM&V information outlined in Task 2.4, program performance data, and customer support tools o Consumption, portal and messaging engagement, leak alerts, customer portal view • Live Chat allows CITY staff to ask questions and receive a response within the hour. Available 7 a.m. to 6 p.m. Pacific Monday thru Friday, excluding federal holidays. • The CONSULTANT Support Site, which is accessible by all CITY staff, includes responses to Frequently Asked Questions as well as common troubleshooting topics, how-to videos and other customer support -oriented content. • Dashboard will be available to CITY staff at all times during the duration of this contract Task 1.4 Training • CONSULTANT will provide CITY staff with on -site and webinar training and resources to understand the features and functionality of the Customer Portal and Analytics Dashboard. Task 1.5 Maintenance of Web Applications • CONSULTANT will maintain commercially reasonable systems and controls designed to maximize monthly uptime and minimize unscheduled outages of the Customer Portal and CITY Analytics Dashboard. Excluding any down time for maintenance and/or upgrades, CONSULTANT makes strong efforts to provide Customers and CITY Vers.: Aug. 5, 2019 Page 5 of 16 Item 7 Page 9 Packet Page 186 of 582 Docusign Envelope ID: CF2FCE46-EF20-4D73-A7A3-34C035462BA5 ITEM 7 Attachment A with access to their respective Web applications on a continuous basis. • CONSULTANT will provide advance notification of any planned outages and notifies CITY without unreasonable delay if it detects or receives notice of any material problems relating to the Customer Portal and/or the CITY Analytics Dashboard. • CONSULTANT's Web Applications include dynamic and interactive charts and tables that may not be compatible with older Internet browsers. o The Internet browser and operating system requirements are: ■ Windows XP: Chrome 38+, Firefox 32+ ■ Windows 7, 8, 8.1, 10: IE 11+, Chrome 38+, Firefox 32+ ■ Mac: Chrome 38+, Firefox 32+, Safari 10+ ■ CONSULTANT's system requirements are subject to change in the future. TASK 2— HOME WATER REPORTS (HWR) provided by VXsmart Water Reports are personalized, informative, carefully designed reports that help CITY customers better understand their water use and the cost and effort it takes the CITY to deliver high quality and reliable water services. Task 2.1 Configuration of Water Reports • CONSULTANT's Water Reports will contain several configurable fields. • CONSULTANT will work with the CITY to configure the Water Report with CITY logo and contact information. • CONSULTANT will provide messages and recommendations for CITY to review and approve for display on a targeted basis. CITY has the opportunity to approve or exclude any messages and recommendations shown in the Water Report. • CITY will provide CONSULTANT with information on available rebates and incentives that should be flagged within relevant water saving recommendations. • For both Messaging and Recommendations, the review process is as follows: o CONSULTANT sends default content to CITY. o CITY project manager sends back a single, consolidated list of approved messages. o CONSULTANT's customer success manager can offer the CITY the opportunity to proof finalized content of Water Reports and the Customer Portal once they are configured. • CITY has the opportunity to provide one custom text Water Report message per Report. Task 2.2 Recipients • CONSULTANT will include up to 25,000 customers in efficiency study and will send reports to no more than 20,000 customers. The number of recipients may Vers.: Aug. 5, 2019 Page 6 of 16 Item 7 Page 10 Packet Page 187 of 582 Docusign Envelope ID: CF2FCE46-EF20-4D73-A7A3-34C035462BA5 ITEM 7 Attachment A vary slightly in any month of Water Reports based on the availability of valid meter data for each account and the number of new or closed accounts in a given period. Water Reports are sent digitally where valid email addresses are available, and by print otherwise. • CONSULTANT will customize every Water Report by proprietary content personalization to tailor messages and recommendations specifically to each end - user. Task 2.3 Number and Scheduling of Water Reports • CONSULTANT will send monthly Water Reports via mail or email to any account type, and may be targeted to certain accounts, sent to randomly selected accounts as part of a randomized control trial, or sent to all of CITY's customers. • Each recipient account is eligible to receive a Water Report every month. Some accounts may receive fewer Water Reports due to missed or incorrect reads, or a closing or opening of a new account with the CITY. • CONSULTANT will ship Water Reports based on the schedule that the CITY transfers meter read data to CONSULTANT. Task 2.4 Finalization of Customer Letter • CONSULTANT will send a Customer Letter on behalf of the CITY, to accounts that receive access to the Customer Portal. The Customer Letter is branded for the CITY (has CITY logo and contact information) and CITY has the ability to personalize the signature. No other customization is available. • CONSULTANT will send Customer Letters by email where a valid email address is available and by print otherwise. Task 2.3 Post -Launch Survey • CONSULTANT will send a post -launch Satisfaction Survey to CITY customers. • CONSULTANT will send a link to a post -launch survey to accounts with email addresses. • CONSULTANT will provide a sample of the post -launch survey invitation, including one block of content, which the CITY may personalize. • CITY will provide consolidated comments and final approvals to CONSULTANT • The results of the post -launch survey are used to gauge customer satisfaction and Water Report perceptions. CONSULTANT will share all results of the post -launch survey with CITY. TASK 3 EFFICIENCY STUDY Task 3.1 Randomized Control Trial • CONSULTANT will use a randomized control group design to ensure the water saved as a result of the CONSULTANT program can be accurately measured and verified. The Residential Recipients receive Water Reports while the Control Group does not. Vers.: Aug. 5, 2019 Page 7 of 16 Item 7 Page 11 Packet Page 188 of 582 Docusign Envelope ID: CF2FCE46-EF20-4D73-A7A3-34C035462BA5 ITEM 7 Attachment A This program design allows CONSULTANT to compare the changes in water consumption and customer satisfaction of the Recipients versus the Control Group and to provide the CITY with formal statistical results. While the group of Residential Recipients may expand after the first term of the project, only the first group of Recipients is used to measure results. Task 3.2 Measurement and Verification • CONSULTANT will report changes in consumption for the Recipient Group versus a randomized Control Group selected from CITY's entire population of residential households. • After three Water Reports have been sent, CONSULTANT will prepare an efficiency study that details the change in water usage for the Recipient versus Control Group, and will load those results into the CITY Analytics Dashboard. This evaluation is performed with a Fixed -Effects regression model using the consumption data for each household in the Recipient and Control Groups. The efficiency study report includes percentage savings, GPD (Gallons per Day) savings, and Acre Foot savings at the program level for all months after the first Water Reports were sent. • CONSULTANT will evaluate and track savings from CITY efficiency program participation. • CONSULTANT will continue to measure results (as long as a Control Group is maintained). TASK 4— INTEGRATION Task 4.1 Single Sign -On (SSO) provided by VertexOne Digital Base • CONSULTANT will work with CITY's online platform host to provide a single sign on experience for residential and commercial customers. This integration will require cooperation by CONSULTANT in a timely manner to accomplish agreed upon integration protocol processes. CITY's online platform host may change and CONSULTANT will support SSO with new host using CONSULTANT's integration protocol. • CONSULTANT will ensure that the single sign on functionality is functioning properly. TASK 5— INVOICING AND REPORTING Task 5.1 Reporting • In addition to the requirements for invoices set forth in Section 5 of the Agreement, CONSULTANT will upload reports into CITY's reporting database in order to complete invoicing when database becomes available. • CONSULTANT will provide CITY with monthly and annual reports in the form of spreadsheets and/or dashboard summary charts as desired by CITY. Vers.: Aug. 5, 2019 Page 8 of 16 Item 7 Page 12 Packet Page 189 of 582 Docusign Envelope ID: CF2FCE46-EF20-4D73-A7A3-34C035462BA5 ITEM 7 Attachment A • Program reports may include information on program participation, cost expenditure and budget remaining, and commodity savings. • CONSULTANT will respond to ad -hoc data requests by CITY. • CONSULTANT agrees to work with CITY to respond to SCVWD, BAWSCA, CPUC, NCPA, CARB, CEC or other Federal, State or local data requests or reporting requirements. • CONSULTANT will interface with CITY's contracted evaluation, measurement and verification firms as necessary. • CONSULTANT will evaluate Program efficacy for participating customers and conduct follow up surveys. Task 5.2 Invoicing • CONSULTANT will invoice CITY on a quarterly basis consistent with Section 5 of the Agreement and in accordance to the more specific guidelines set forth in Exhibit "C", "Compensation". • CONSULTANT will provide volumetric reporting for outbound communications transactions by channel. A single communication transaction may incur a composition fee, a document archival fee, and a pass through & management fee, as described in Exhibit C. • For Pass Through & Management fees, as described in Exhibit C, CONSULTANT will provide the invoice from the vendor to the CITY, which will include line -item charges for each outbound communication destination and an administrative fee. • Any alerts/notifications permitted by the CITY and requested by the customer will incur a composition and document archival fee, as detailed in Exhibit C. The composition fee applies to any communication manually sent by the CITY and communications from the CITY triggered by an algorithm (e.g., high bill warning, leak alert, HWR, etc.). The transactional fees are shown in Exhibit C. • CONSULTANT will provide monthly invoice tracking to ensure spending will not meet the budget threshold without written approval from the CITY. TASK 6— PROGRAM TERMINATION Task 6.1 The CONSULTANT will resolve all outstanding jobs in progress, as well as customer complaints. TASK 7— SUBMIT FINAL PROGRAM REPORT Task 7.1 CONSULTANT will submit a final report which includes a narrative with an overview of the Program and spreadsheet detailing the budget and actual Program cost. The final report will include Program Achievements, challenges, goals and lessons learned. Vers.: Aug. 5, 2019 Page 9 of 16 Item 7 Page 13 Packet Page 190 of 582 Docusign Envelope ID: CF2FCE46-EF20-4D73-A7A3-34C035462BA5 ITEM 7 Attachment A CONSULTANT agrees to deliver the final report within 30 days of the end of the Term as such date may be extended at the sole discretion of CITY. Task 7.2 CONSULTANT will maintain electronic copies of invoices for three years as required by the CITY per Section 15. Audits. Vers.: Aug. 5, 2019 Page 10 of 16 Item 7 Page 14 Packet Page 191 of 582 Docusign Envelope ID: CF2FCE46-EF20-4D73-A7A3-34C035462BA5 ITEM 7 Attachment A EXHIBIT "C" COMPENSATION, AMENDMENT NO. 3 (AMENDED, REPLACES PREVIOUS) The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the task -based rate schedule shown below in Table C-1 up to the not to exceed budget amount for each task set forth below. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY's Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, and the total compensation for Additional Services do not exceed the amounts set forth in Section 4 of this Agreement. REIMBURSABLE EXPENSES There are no reimbursable expenses under this Agreement. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY's project manager's request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT's proposed maximum compensation, , for such services. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY's Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. Table C-1: Anticipated Quarterly Cost Structure* *CONSULTANT will invoice CITY upon completion of each task at the close of each quarter for all costs with exception of the Initialization fee, which is billable upon contract execution. No payment shall be due until each task is completed, or, in the case of reports, until the report is delivered. Payment for quarterly license shall commence in the quarter that the Launch Effective Date occurs. CONSULTANT and CITY agree that CONSULTANT will apply a $9,375 credit to each of the first and second quarterly license payments. All other payments will be made in accordance with Exhibit C. No further compensation will be made for services provided prior to this Amendment. Vers.: Aug. 5, 2019 Page 11 of 16 Item 7 Page 15 Packet Page 192 of 582 Docusign Envelope ID: CF2FCE46-EF20-4D73-A7A3-34C035462BA5 ITEM 7 Attachment A Cost Structure - Years 1-5: Year 1 Integration $5,500 Initialization $20,000 $12,500 $12,500 $12,500 $9,375 $9,375 $9,375 Welcome Letters $16,875 Training $1,500 Reports License $9,375 $138,875 Year 2 Reports $12,500 $12,500 $12,500 $12,500 License $9,375 $9,375 $9,375 $9,375 $87,500 Year 3 Reports $12,500 $12,500 $12,500 $12,500 License $9,375 $9,375 $9,375 $9,375 $87,500 Year 4 $12,500 $12,500 $9,375 $9,375 Reports License $12,500 $12,500 $9,375 $9,375 $87,500 Year 5 Reports $12,500 $12,500 $12,500 $12,500 License $9,375 $9,375 $9,375 $9,375 $87,500 Vers.: Aug. 5, 2019 Page 12 of 16 Item 7 Page 16 Packet Page 193 of 582 Docusign Envelope ID: CF2FCE46-EF20-4D73-A7A3-34C035462BA5 ITEM 7 Attachment A Sub -Total $488,875 Additional Services $48,888 Total $537,763 Services Billed in Years 1-6: Years Total Amount Spent Year 1 $58,750 Year 2 $28,125 Year 3 $63,500 Year 4 $63,500 Year 5 $87,500 Year 6 (Q1 -Q2) $43,750 Total $345, 125 Vers.: Aug. 5, 2019 Page 13 of 16 Item 7 Page 17 Packet Page 194 of 582 Docusign Envelope ID: CF2FCE46-EF20-4D73-A7A3-34C035462BA5 ITEM 7 Attachment A Module/Functionality Q2 Q2 O3 O4 Estimated Total Annual Cost Years 6-7 VertexOne Digital Base $4,500 $4,500 $4,500 $4,500 $18,000 VXsmart - $0.80 x 21,000 $4,200 $4,200 $4,200 $4,200 $16,800 (total # of accounts Home Water Reports Base $240 $240 $240 $240 $960 Home Water Reports $50 $50 $50 $50 $200 Variable - $0.01280 for each account receiving reports (est. 15,625) SSO for End Customer Base $3,250 $3,250 $3,250 $3,250 $13,000 SSO for End Customer $169 $169 $169 $169 $674 Variable - $0.03207 for each account (est. 21,000) Transactional Fees - $11,779 $11,799 $11,799 $11,799 $47,116 Estimated cost of all transactional fees, plus a buffer Year 6 O3 and O4 Sub Total (Estimated annual cost minus services billed Q1 and O2) $53,000 Year 7 Sub Total $96,750 Additional Services Budget Remaining $42,888 Estimated Total Cost - Year 6, O3 — Year 7, O4 $192,638 Total Billed during Contract Years 1-5 $345,125 Total Contract Not to Exceed $537,763 Transactional Fees Pricing Transactional fees include the following: outbound message composition fee, document archival fee, pass through & management fees. Vers.: Aug. 5, 2019 Page 14 of 16 Item 7 Page 18 Packet Page 195 of 582 Docusign Envelope ID: CF2FCE46-EF20-4D73-A7A3-34C035462BA5 ITEM 7 Attachment A Transactional Fee Pricing Composition Fee $0.005/communication Document Archival $0.005/communication SMS Pass Through $0.032/SMS Print Pass Through $0.52/Printed Document The pass through & management fee is only incurred if the outbound communication channel is Letter, SMS and/or voice channels. Emails do not incur a Pass Through & Management fee. Letters may not incur the pass through & management fee if the CITY is responsible for print services. The table below provides more clarity around when the various The transactional fees are charged. Transactional Fees by Channel Channel Composition Fee Document Archival Fee Pass Through & Management Feel Email X X SMS X X X Print X X X Voice X X 'Pass through fee from vendor, plus CONSULTANT administration charge Transactional Fees Scenarios Item Composition Fee Document Pass Through & Archival Fee Management Fee 1 Form Submission X 2 Home Water Reports X X X 3 Ad Hoc Utility X X X Communication (City Staff Vers.: Aug. 5, 2019 Page 15 of 16 Item 7 Page 19 Packet Page 196 of 582 Docusign Envelope ID: CF2FCE46-EF20-4D73-A7A3-34C035462BA5 ITEM 7 Attachment A Triggered Outbound Communication) 4 Welcome Letters, Portal X X X Nudge Letters, & Survey Letters 5 Leak Alerts (AMI & Non- X X X AMI) 6 Usage Notifications X X X (Unplanned Use, High Use) 7 Bill Notifications (Bill X X X Reminder, Bill Ready, Bill Forecast)1 8 Outage Notifications X X X *Fee pricing is based on the total number of communications with end customers. CONSULTANT will provide monthly invoice tracking to ensure spending will not meet the budget threshold without written approval from the CITY. * Vers.: Aug. 5, 2019 Page 16 of 16 Item 7 Page 20 Packet Page 197 of 582 ITEM 8 City Council Staff Report From: City Manager CITY O F Report Type: CONSENT CALENDAR PALO Lead Department: Utilities ALTO Meeting Date: February 10, 2025 Staff Report #:2412-3844 TITLE Adoption of a Resolution Authorizing the City Manager to Approve the Verified Emission Reduction (VER) Master Agreements with AQC Environmental Brokerage Services, Inc. and SCB Brokers, LLC and Authorizing the City Manager to Purchase VERs from AQC Environmental Brokerage Services, Inc. and SCB Brokers, LLC Under Specified Terms and Conditions During Calendar Years 2025 Through 2034, Inclusive, Subject to Limitations; CEQA Status: Not a Project, CEQA Guidelines 15378(b)(5) RECOMMENDATION Staff recommends that the City Council adopt the attached resolution (Attachment A): 1. Authorizing the City Manager, or their designee, to execute the Verified Emission Reduction (VER) Master Agreements with AQC Environmental Brokerage Services, Inc. (Attachment B) and SCB Brokers, LLC (Attachment C); and 2. Authorizing the City Manager, or their designee, to purchase a portion of the City's VER requirements from AQC Environmental Brokerage Services, Inc. and SCB Brokers, LLC under specified terms and conditions during calendar years 2025 through 2034, inclusive, subject to the following limitations: a. The maximum aggregate transaction limit under these Master Agreements shall be $10 million per counterparty; b. All transactions are subject to the Palo Alto Municipal Code; and c. All transactions are subject to the City's Energy Risk Management Policy, Guidelines and Procedures; EXECUTIVE SUMMARY To implement the Council -approved Carbon Neutral Natural Gas Plan (Resolution 9649), the City must purchase an annual quantity of VERs (commonly referred to as carbon offsets) equal to the greenhouse gas emissions caused by natural gas use by City gas utility customers. In August 2017 Council adopted a Standard Form VER Master Agreement (Resolution 97031). The 1 Resolution 9703 https://www.cityofpaIoaIto.org/files/assets/public/v/1/city-clerk/resolutions/reso-9703.pdf Item 8 Page 1 Packet Page 198 of 582 ITEM 8 Standard Form VER Master Agreement is available to all VER suppliers for execution with non - substantive changes, and agreements with specific suppliers including maximum expenditures and transaction term limits are to be presented to Council for approval. AQC Environmental Brokerage Services, Inc. and SCB Brokers, LLC have agreed to the terms and conditions of the Standard Form VER Master Agreement. The proposed resolution authorizes the City Manager to execute those agreements and purchase VERs under the agreements within a maximum expenditure and transaction term limits, and increases the pool of approved VER suppliers. BACKGROUND Palo Alto Municipal Code Section 2.30.340 (Contracts for Wholesale Utility Commodities) allows for the use of master agreements to buy and/or sell electricity, gas and related services through various preapproved ("enabled") suppliers. Contracts or transactions executed under Council -approved master agreements must be done in accordance with the City's Energy Risk Management Policy, Guidelines and Procedures. On August 15, 2016, Council approved an ordinance modifying the Municipal Code to streamline the purchase and sale of wholesale utility commodities and services and to allow for a Council -approved standard form master agreement (August 15, 2016 City Attorney 2). The ordinance modified Municipal Code Section 2.30.140 clarifying the process to enable suppliers by specifically allowing the use of a standard form master agreement that contains the City's minimum contract terms and conditions. Execution of standard form master agreements and delegation of authority to transact under the standard form master agreements with specific suppliers is subject to Council approval. This process is used when contracting for natural gas. In December 2016, Council adopted Resolution 96493 approving a Carbon Neutral Natural Gas Plan (Plan) to achieve carbon neutrality for the gas supply portfolio by FY 2018 using high - quality carbon offsets (VERs) with a cost cap of 10 cents per therm. Implementation of the Plan requires executing contracts to enable the City to purchase VERs from approved suppliers. In August 2017 Council adopted a Standard Form VER Master Agreement (Resolution 9703), making it available to all VER suppliers for execution with non -substantive changes. In December 2020 Council adopted Resolution 99304, amending the Carbon Neutral Gas Plan. The amended plan limited the purchase price of offsets to $19 per ton C02e, consistent with 2 August 15, 2016 City Attorney Report https://www.citVofpaloalto.org/files/assets/public/v/1/agendas-minutes- reports/reports/city-manager-reports-cmrs/yea r-archive/2016/sr-7093-mini-packet.pdf 3 Resolution 9649 https://www.cityofpaloaIto.org/files/assets/public/v/1/city-clerk/resolutions/reso-9649.pdf 4 Resolution 9930 https://www.cityofpaloalto.org/files/assets/public/v/1/city-clerk/resolutions/resolutions-1909- to-present/2020/reso-9930. pdf Item 8 Page 2 Packet Page 199 of 582 ITEM 8 the original maximum 10 cents per therm rate impact, clarified the allowable offset vintages consistent with state Cap and Trade requirements, and clarified the preference for projects located in California. ANALYSIS Maintaining a set of active counterparties is essential to achieving competitive pricing. The Standard Form VER Master Agreement is available for potential VER suppliers for execution with non -substantive changes. Per Resolution 9703 approving the Standard Form VER Master Agreement, Master Agreements with specific VER suppliers must include maximum expenditures and transaction term limits and must be approved by Council. The VER suppliers AQC Environmental Brokerage Services, Inc. and SCB Brokers, LLC have agreed to the terms and conditions of the Standard Form VER Master Agreement. The proposed resolution (Attachment A) authorizes the City Manager to execute those agreements and purchase VERs under the agreements within a maximum expenditure and transaction term limits. Current approved VER counterparties include 3Degrees, ACT Commodities, Anew, CarbonFund, and ClimeCo. Adding the two recommended counterparties will increase the likelihood of receiving multiple bids and competitive pricing for the City's carbon offset needs. All transactions under the VER Master Agreements will be executed in accordance with the Council -approved Energy Risk Management Policy. The FY2026 budget estimate for the program is $1.9 million which is based on a $13.50 per ton CO2e carbon offset price. If the carbon offset price exceeds the Council -approved maximum of $19 per ton CO2e, the program will need to be modified by Council or terminated. Staff recommends a maximum aggregate transaction limit of $10 million per counterparty, which is consistent with the limits applied to the City's other VER counterparties. Adoption of the proposed resolution conforms to the Council -approved Energy Risk Management Policy and the Palo Alto Municipal Code. Further, the recommendation is consistent with the Council -approved Carbon Neutral Gas Plan, the Gas Utility Long-term Plan and the Utilities Strategic Plan objective to manage supply cost by negotiating supply contracts to minimize financial risk. FISCAL/RESOURCE IMPACT Funding for the purchase of VERs is available in the FY 2025 Gas supply budget. Funding for the purchase of VERS in subsequent years will be subject to the annual budget process and appropriation of funds. STAKEHOLDER ENGAGEMENT Utilities staff worked with the City Attorney's Office in 2017 to develop the City's Standard Form VER Master Agreement. If the proposed resolution is adopted by Council, Staff will submit Item 8 Page 3 Packet Page 200 of 582 ITEM 8 the VER Master Agreements with AQC Environmental Brokerages Services, Inc. and SCB Brokers, LLC to the City Manager for execution. ENVIRONMENTAL REVIEW Council's adoption of the attached resolution authorizing the City Manager to approve the VER Master Agreements with AQC Environmental Brokerage Services, Inc. and SCB Brokers, LLC and authorizing the City Manager to purchase VERs from AQC Environmental Brokerage Services, Inc. and SCB Brokers, LLC is not subject to California Environmental Quality Act (CEQA) review as it is an administrative governmental activity that will not result in any direct or indirect physical change to the environment (CEQA Guidelines 15378(b)(5)). Future CEQA review will occur, if necessary, based on the relevant lead agency's analysis of any impacts from any offset projects that are developed. ATTACHMENTS Attachment A: Resolution Approving the VER Master Agreements and Authorizing the City Manager to Purchase VERs Attachment B: VER Master Agreement with AQC Environmental Brokerage Services Attachment C: VER Master Agreement with SCB Brokers, LLC APPROVED BY: Kiely Nose, Interim Utilities Director Staff: Jason Huang, Resource Planner Item 8 Page 4 Packet Page 201 of 582 NOT YET APPROVED Attachment A ITEM 8 Attachment A Resolution No. Resolution of the Council of the City of Palo Alto Approving Verified Emission Reduction Master Agreements with AQC Environmental Brokerage Services, Inc. and SCB Brokers, LLC and Authorizing the City Manager to Purchase VERs from AQC Environmental Brokerage Services, Inc. and SCB Brokers, LLC under Specified Terms and Conditions During Calendar Years 2025 through 2034, Inclusive RECITALS A. On December 5, 2016, the Council adopted Resolution 9649 approving a Carbon Neutral Natural Gas Plan to achieve a carbon neutral gas portfolio by fiscal year 2018 with no greater than a 10 cents per therm rate impact. B. In accordance with the Carbon Neutral Plan, the City must purchase environmental offsets or verified emission reductions equal to the annual emissions from natural gas use by all City of Palo Alto Natural Gas Utility customers. C. By Resolution 9703 approved August 21, 2017, Council approved the Standard Form Verified Emissions Reduction Master Agreement (VER Master Agreement); negotiated agreements with specific verified emission reduction suppliers are recommended for Council approval with maximum expenditure limits and transaction terms. D. On December 7, 2020, the Council adopted Resolution 9930 modifying the Carbon Neutral Gas Plan, limiting the price paid by the City for VERs to $19 per ton CO2e. E. The City intends to purchase verified emission reductions from one or more prequalified suppliers from delivery during calendar years 2025 through 2034, inclusive, so long as the supplier with whom the City negotiates a specific purchase transaction continues to be qualified and otherwise eligible to transact with the City. The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. The Council hereby delegates to the City Manager or their designee the authority to execute the VER Master Agreements with AQC Environmental Brokerage Services, Inc. and SCB Brokers, LLC. SECTION 2. The Council hereby authorizes the City Manager or their designee to purchase a portion of the City's verified emission reduction requirements from AQC Environmental Brokerage Services, Inc. and SCB Brokers, LLC by negotiating one or more individual transactions, including, but not limited to, contracts, addenda, confirmations, and transactions. SECTION 3. The purchases negotiated under Section 2 with AQC Environmental Brokerage Services, Inc. and SCB Brokers, LLC shall not exceed $10 million per counterparty; and all 1 6056914 Item 8 Page 5 g Packet Page 202 of 582 NOT YET APPROVED Attachment A ITEM 8 Attachment A transactions are subject to the Palo Alto Municipal Code and the City's Energy Risk Management Policy, Guidelines and Procedures. SECTION 4. Adoption of this resolution is not subject to California Environmental Quality Act (CEQA) review as it is an administrative governmental activity that will not result in any direct or indirect physical change to the environment (CEQA Guidelines 15378(b)(5)). INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: City Clerk APPROVED AS TO FORM: Assistant City Attorney Mayor APPROVED: City Manager Director of Administrative Services Director of Utilities 6056914 2 Item 8 Page 6 Packet Page 203 of 582 ITEM 8 ATTACHMENT B Attachment B MASTER AGREEMENT FOR THE PURCHASE AND SALE OF VERIFIED EMISSION REDUCTIONS This Master Agreement for the Purchase and Sale of Verified Emission Reductions (the "Master Agreement") is made as of this 7th day of October, 2022 ("Effective Date"), by and between the City of Palo Alto, California, a chartered California municipal corporation with its primary business address at 250 Hamilton Avenue, Palo Alto California 94301 ("City" or "Buyer") and AQC Environmental Brokerage Services, Inc., a California corporation, with its primary business address at 5881 Engineer Dr., Huntington Beach, California 92649 ("Seller"). This Master Agreement, together with any and all Confirmation Letters and other schedules and exhibits related to Verified Emissions Reductions (as defined herein) shall be referred to as the "Agreement". RECITALS: A. The Parties wish to buy and sell Verified Emission Reductions on the terms set forth in this Master Agreement; B. Buyer wishes to enter into this Master Agreement with Seller to facilitate future Verified Emission Reductions purchases to manage various customer programs administered by the Buyer; C. Seller has access to Verified Emission Reductions and wishes to enter into this Master Agreement with Buyer to participate in the future Verified Emissions Reductions purchases that the City may undertake from time to time; and D. This Master Agreement facilitates, but does not guarantee, Seller's qualifications to competitively participate with other sellers in future Verified Emission Reductions purchases, and it does not guarantee that the City will enter into any future Verified Emission Reductions purchases with the Seller. NOW, THEREFORE, in consideration of the recitals and the covenants, terms and conditions of this Master Agreement, the Parties agree: AGREEMENT 1. Term and Termination. The term of this Master Agreement shall commence on the Effective Date, as set forth above, and shall remain in effect until terminated by either Party upon thirty (30) days' prior written notice, subject to the provisions of Section 24, except that any such termination shall not be effective until all payments, deliveries and other obligations of the Parties under this Master Agreement, and any Confirmation Letters executed thereunder, have been completed. 2. Definitions. As used in this Master Agreement, the following terms have the respective meanings set forth below, unless the context otherwise clearly indicates. Other capitalized terms are defined elsewhere in this Master Agreement. "Applicable Law" means all legally binding constitutions, treaties, statutes, laws, 1 Item 8 Page 7 Packet Page 204 of 582 ITEM 8 Attachment B ordinances, rules, regulations, orders, interpretations, permits, judgments, decrees, injunctions, writs and orders of any Governmental Authority or arbitrator that apply to the Verified Emission Reductions or any one or both of the Parties or the terms hereof. "ARB" means the California Environmental Protection Agency Air Resources Board, or any successor agency thereto. "Bankrupt" means with respect to any entity, such entity (i) files a petition or otherwise commences, authorizes or acquiesces in the commencement of a proceeding or cause of action under any bankruptcy, insolvency, reorganization or similar law, or has any such petition filed or commenced against it, (ii) makes an assignment or any general arrangement for the benefit of creditors, (iii) otherwise becomes bankrupt or insolvent (however evidenced), (iv) has a liquidator, administrator, receiver, trustee, conservator or similar official appointed with respect to it or any substantial portion of its property or assets, or (v) is generally unable to pay its debts as they fall due. "Business Day" means any day, except a Saturday, Sunday, or any day observed as a legal holiday by the City. A Business Day shall open at 8:00 a.m. and close at 5:00 p.m. Pacific Standard Time or Pacific Daylight Time, as applicable. "Confidential Information" is defined in Section 12. "Confirmation Letter" or "Confirm" means a written confirmation materially in the form of Exhibit A attached hereto. The Confirmation Letter constitutes part of, and is subject to, the terms and provisions of this Master Agreement. "Contract VERs" means the VERs specified in the Confirmation Letter and relating to the GHG Reductions generated by the Project during the Vintage Year(s). "Delivery" has the meaning specified in Section 3(b). "Delivery Deadline" means three (3) Business Days after the Transaction Date specified in an applicable Confirm. "Effective Date" has the meaning given to such term in the opening paragraph of this Master Agreement. "Force Majeure" is defined in Section 21. "Governmental Authority" means any national, federal, provincial, state, municipal, county, regional or local government, administrative, judicial or regulatory entity operating under any Applicable Law and includes any department, commission, bureau, board, administrative agency or regulatory body of any government. "GHGs" means one or more of the six greenhouse gases listed in Annex A to the Kyoto Protocol of the UNFCCC, as amended from time to time. "GHG Reduction" means the removal, limitation, reduction, avoidance, sequestration or mitigation of anthropogenic GHG emissions. "Party" or "Parties" means Buyer and Seller, individually or collectively, as applicable. "Project" means an emission reduction project that is located in the United States and an 2 Item 8 Page 8 Packet Page 205 of 582 ITEM 8 Attachment B "Offset Project" as defined by ARB and of a Project Type approved by ARB and is identified in the applicable Confirmation Letter. "Project Documentation" means documents, data or other information, whether in written or electronic form, produced by Seller or to which Seller has access relating to the Project or the Contract VERs. "Project Type" means U.S. Forest, U.S. Urban Forest, U.S. Livestock, U.S. Sourced and Destroyed Ozone Depleting Substances, U.S Mine Methane Capture, and U.S. Rice Cultivation; or any other Project Type subsequently approved by ARB. "Registry" means either the Climate Action Reserve, the Verified Carbon Standard, or the American Carbon Registry or any successor registry thereto. "Transaction" means a written agreement between the Parties in the form of an applicable Confirmation Letter to undertake one or more Deliveries of Contract VERs, subject to the terms of this Master Agreement. "Transaction Date" means the date the Parties enter into a Transaction as specified on the applicable Confirm. "Unit Price" means the price for Contract VERs set forth in the applicable Confirmation Letter. "VER Payment" means an amount equal to the product of the Unit Price multiplied by the number of Contract VERs Delivered to Buyer in accordance with this Agreement. "Verification", "Verify" and "Verified" means the determination by a Verification Provider that an emissions reduction meets the requirements of the Registry as evidenced by a Verification Report and unique serial number. "Verified Emission Reduction" or "VER" means one (1) metric tonne of CO2 Equivalent (CO2e) of Verified GHG Reductions generated by the Project. "Verification Provider" means an independent verification provider accredited by a Registry (or such other verification provider proposed by Seller and accepted by Buyer in its sole discretion). "Verification Report" means any written report required by a Registry and prepared by a Verification Provider reviewing and verifying that, in accordance with Project Documentation, Registry Protocols and requirements in effect at the date of its production, the Contract VERs have occurred during the Vintage Year and are eligible for registration in the Registry. "Vintage Year" means, in respect of a Contract VER, the calendar year in which the emissions reductions and removals represented thereby occurred as specified in the applicable Confirmation Letter. 3. Purchase and Sale of Verification Emission Reductions. a. Purchase and Sale. Subject to the terms and conditions of this Master Agreement, Seller agrees to Deliver to Buyer the Contract VERs on the terms specified in an Item 8 Page 9 Packet Page 206 of 582 ITEM 8 Attachment B executed Confirmation Letter, a form of which is attached hereto as Exhibit A. Buyer agrees to purchase all such Contract VERs to the extent they are Delivered on or before the specified Delivery Date for such Contract VERs. b. Delivery. Seller shall deliver the Contract VERs to Buyer by the Delivery Deadline. Seller will effect delivery by retiring the Contract VERS on behalf of Buyer in Seller's Registry account identified in the Confirmation Letter, along with the notation "on behalf of the City of Palo Alto" or similar expression. The Contract VERs will be deemed to be delivered upon Buyer's receipt of an electronic confirmation from such Registry that the relevant retirement has been completed ("Delivery", and variations of such term shall have their corresponding meanings.) Title to the Contract VERs will pass from Seller to Buyer upon Delivery. c. Project Documentation. i. Verification Reports. Upon the written request of Buyer, Seller shall deliver to Buyer copies of any Verification Report(s) for the Contract VERs within ten (10) Business Days of such request. ii. Other Project Documentation. Upon the reasonable written request of Buyer, Seller shall provide to Buyer copies of Project Documentation (to the extent that such Project Documentation is made available to Seller) within ten (10) Business Days of such request. 4. Price and Payment. i. Price. Buyer agrees to buy the applicable Contract VERs from Seller at the Unit Price specified in the applicable Confirm for each Contract VER Delivered to Buyer. Seller agrees to pay all Registry fees associated with the issuance and Delivery of the Contract VERs to Buyer. ii. Billing and Terms of Payment. a. Buyer will remit the VER Payment to Seller net thirty (30) days after the date Buyer receives a properly prepared and accurate invoice sent to Buyer's address for Contract VERs that have been Delivered. Buyer has no obligation to make payment for any Contract VERs that have not been Delivered in accordance with Section 3(b). b. An invoice that is properly prepared shall include at a minimum: i. Seller's complete name and address where payment is to be remitted; ii. Buyer's complete name and address where bill is to be 4 Item 8 Page 10 Packet Page 207 of 582 ITEM 8 Attachment B sent; iii. The Unit Price; iv. The VER Payment; v. Invoice date; vi. Terms of payment, including any applicable discount calculations; and vii. Tax amount/rate information, if applicable. c. Payment may be made by wire transfer. Payment by check shall be considered made when received by Seller. Wiring instructions: Bank Name: Chase Bank ABA: 322271627 (ACH) Account Name: AQC Environmental Brokerage Services, Inc. Account Number: 209723029 iii. Taxes and Fees. a. Seller will pay all taxes and fees arising prior to Delivery. b. Seller will pay all mandatory taxes and fees arising out of the transactions contemplated by this Agreement levied by a government or other competent public taxing authority on the transfer of the Contract VERs to Buyer, including any sales tax (if applicable). c. Each Party will pay for its own income, property or ad valorem taxes. 5. Events of Default. A Party is in default hereunder if that Party does any of the following (each an "Event of Default"): a. the failure of any Party to make any payment when due if such failure is not remedied within thirty (30) days after receipt of written notice of such failure, provided that if the Buyer, in good faith, disputes all or any portion of the payment, the Buyer shall pay only that portion of the payment that it does not dispute; b. in the case of Seller, if by the applicable Delivery Deadline, Seller fails to Deliver 5 Item 8 Page 11 Packet Page 208 of 582 ITEM 8 Attachment B to Buyer any Contract VERs specified on an executed Confirmation Letter and that failure is not remedied within five (5) Business Days of Buyer giving notice of that failure, and such failure is not due to Force Majeure or Buyer's failure to accept such Contract VERs following proper Delivery; c. any representation or warranty provided by either Party herein that shall prove to have been false or misleading in any material respect when made or repeated; d. the failure by a Party to perform any covenant or agreement set forth in this Master Agreement and applicable Confirmation Letters and incorporated exhibits (other than its obligations to make any payment or obligations which are otherwise specifically covered as a separate Event of Default), and such failure is not cured within fifteen (15) Business Days after written notice thereof to the affected Party; e. the Party becomes Bankrupt; or f. the failure by either Party to comply with any of its material obligations under this Agreement and that failure is not remedied within thirty (30) days of the other Party giving notice of that failure. 6. Remedies for Default. In the event of an Event of Default by either Party, the non -defaulting Party may terminate this Agreement and all of the applicable Confirmation Letters immediately upon written notice to the defaulting Party. Upon a valid termination under this provision, Seller (if the non -defaulting Party) will have no further obligation to Deliver additional Contract VERs to Buyer, and Buyer (if the non - defaulting Party) will have no further obligation to purchase additional Contract VERs under this Agreement, including with respect to any applicable Confirmation Letters that have been entered between the Parties but not yet Delivered. Termination of the Agreement under this provision will not limit in any way any remedies available to the Parties under this Agreement. 7. Representations. a. Representations by Both Parties. Each Party represents and warrants to the other Party that: i. it is a legal entity, duly formed and validly existing and in good standing under the laws of the state of its formation; ii. it has the power and authority to enter into and perform its obligations under this Agreement; iii. by entering into this Agreement, it will not breach the material terms of any contract with a third party; iv. it is not relying upon any representations of the other Party other than 6 Item 8 Page 12 Packet Page 209 of 582 ITEM 8 Attachment B those expressly set out in this Agreement; v. it has entered into this Agreement after a full opportunity to review its terms and conditions, has a full understanding of those terms and conditions and or their risks, and is capable of assuming those risks; and vi. this Agreement constitutes a legal, valid and binding obligation on it enforceable in accordance with its terms by appropriate legal remedy. b. Seller's Representations to Buyer. Seller hereby represents and warrants to Buyer that: i. it has not sold, transferred, assigned, licensed, disposed of or encumbered (nor become legally obligated to do the same) any right, title or interest in the Contract VERs covered by an applicable Confirm to any person other than Buyer and other than as contemplated in this Agreement; ii. Seller conveys the Contract VERs to Buyer free and clear of any liens, encumbrances, claims, security interests, or title defects; iii. it has the right to transfer the Contract VERs covered by an applicable Confirm to Buyer; iv. it has good title to each Contract VER and it obtained and possessed, or will obtain and possess at the time of transfer, the Contract VERs lawfully; v. any Project -related data provided to Buyer is true and correct to the best of Seller's knowledge, information and belief; vi. each Project agreed to under applicable Confirmation Letters to this Agreement is in substantial compliance with all applicable material laws and regulations, including permit requirements for the operation of such a Project; vii. no authorization, consent, notice to or registration or filing with any governmental authority is required for the execution, delivery and performance by Seller; viii. none of the execution, delivery and performance by Seller conflicts with or will results in a breach or violation of any contract or instrument to which such Seller is a party of is bound; ix. there are no proceedings by or before any governmental authority, now pending or (to the knowledge of Seller) threatened, that if adversely determined could have a material adverse effect on Seller's ability to perform Seller's obligations hereunder; x. the Contract VERs covered by an applicable Confirmation Letter have not been used by Seller or any third party to meet any international, federal, state or local requirement, renewable energy procurement, renewable portfolio standard or other mandate; 7 Item 8 Page 13 Packet Page 210 of 582 ITEM 8 Attachment B xi. Seller will not offer, sell, transfer, dispose, encumber or otherwise deal in the GHG Reductions associated with the applicable Contract VERs other than as provided herein; xii. the Contract VERs are, and will be at the time of Delivery, validly issued and in force in accordance with the protocols of the Registry specified in the applicable Confirmation Letter; xiii. the Contract VERs are, and will be immediately prior to Delivery, duly registered to Seller in the Registry specified in the applicable Confirmation Letter; xiv. neither the Seller, nor any of its associated or parent organizations or affiliates or its customers, has claimed (or will claim) directly or indirectly, including on any voluntary or mandatory greenhouse gas registry program (including EPA Climate Leaders), any of the Contract VERs to be Delivered under this Agreement or any associated GHG Reductions, carbon reductions, offsets, or benefits as part of its own carbon inventory, footprint, or other carbon statement or declaration as anything other than sold to Buyer. Any such reporting of emissions or emissions reductions shall include as Seller's emissions an amount equal to the VER Quantity and Vintages of the Contract VERs sold hereunder, and indicate their sale to Buyer; xv. the Contract VERs have been Verified by the Verification Provider in a Verification Report for the Vintage Year(s); and xvi. no document or information supplied by Seller in connection with this Agreement contains any untrue statement or omits to state a material fact necessary in order to make such document not misleading. 8. Obligations and Liabilities. a. This Master Agreement sets out the full extent of the Parties' obligations and liabilities arising out of or in connection with this Master Agreement, and there are no conditions, warranties, representations or terms, express or implied, that are binding on the Parties except as specifically stated in this Master Agreement. Any condition, warranty, representation or other term which might otherwise be implied into or incorporated in this Master Agreement, whether by statute, common law or otherwise, is hereby expressly excluded. b. Save as expressly provided otherwise in this Master Agreement, neither Party will be liable under or in connection with this Master Agreement for any loss of income, loss or profits or loss of contracts, or for any consequential, incidental, punitive, exemplary, or indirect losses or damages in tort (including negligence), contract, or otherwise pursuant to this Section 8, except for any claims indemnified pursuant to Section 9. 8 Item 8 Page 14 Packet Page 211 of 582 ITEM 8 Attachment B 9. Indemnification a. Indemnification of Buyer: To the fullest extent permitted by Applicable Law, Seller agrees to protect, defend, hold harmless and indemnify Buyer, its City Council, commissioners, officers, employees, volunteers and agents from and against any claim, injury, liability, loss, cost, and/or expense or damage, including all costs and reasonable attorney's fees in providing a defense to any claim arising therefrom, for which Buyer shall become liable arising from Seller's acts, errors, or omissions with respect to or in any way pursuant to this Master Agreement and subsequent transactions and related Confirmation Letters, except for claims, liabilities and damages caused by the Buyer's sole negligence or willful misconduct. b. Indemnification of Seller: To the fullest extent permitted by Applicable Law, Buyer agrees to protect, defend, hold harmless and indemnify Seller, its board of directors, officers, employees, volunteers and agents from and against any claim, injury, liability, loss, cost, and/or expense or damage, including all costs and reasonable attorney's fees in providing a defense to any claim arising therefrom, for which Seller shall become liable arising from Buyer's negligent, reckless or wrongful acts, errors, or omissions with respect to or in any way connected with the maintenance, assistance and services performed by Buyer pursuant to this Master Agreement and subsequent and related Confirmation Letters, except for claims, liabilities and damages caused by the Seller's comparative negligence or willful misconduct. 10. Relationship of the Parties. The relationship of the Parties under this Master Agreement is that of independent contractors. The Parties specifically state their intention that this Master Agreement is not intended to create a partnership or any other co -owned enterprise unless specifically agreed to by the Parties in a separate written instrument. Except as specifically provided herein, each Party shall continue to have the right to contract independent of the other Party with individuals and entities. Each Party shall be responsible for its own operating expenses and personnel expenses. 11. Notices. All notices required or permitted to be given hereunder in writing shall, unless expressly provided otherwise, be in writing, properly addressed, postage pre -paid and delivered by hand, facsimile, certified or registered mail, courier or electronic messaging system to the appropriate address as either Party may designate from time to time by providing notice thereof to the other Party. If to Buyer: If to Seller: 9 Item 8 Page 15 Packet Page 212 of 582 ITEM 8 Attachment B 250 Hamilton Ave. Palo Alto, CA 94301 Attention: City Clerk Phone: 650-329-2571 Fax: 650-328-3631 With a copy to: 250 Hamilton Ave. Palo Alto, CA 94301 Attention: Director of Utilities Phone: 650-329-2277 Fax: 650-329-2154 5881 Engineer Dr. Huntington Beach, CA 92649 Attn: Jaclyn Ferlita Phone: 714-397-5508 Fax: N/A Notices delivered by facsimile or by an electronic messaging system shall require confirmation through a reply facsimile or electronic message. 12. Confidential Information. a. "Confidential Information" shall mean and include information consisting of documents and materials of a disclosing Party and/or any other technical, financial or business information of or about a disclosing Party which is not available to the general public, as well as all information derived from such information, which is furnished or made available to the other Party and is clearly labeled, marked or otherwise identified as "confidential" or "proprietary information." b. The disclosing Party is the Party to whom the Confidential Information originally belongs and who shall, after appropriate notice from the receiving Party, bear the burden of pursuing any legal remedies to retain the confidential status of the Confidential Information, as set forth in Section 12(e), below. c. Confidential Information disclosed by either Party to the other shall be held by the receiving Party in confidence, and shall not be: i. used by the recipient to the detriment of the disclosing Party; or ii. made available for third parties to use. d. Each Party will direct its employees, contractors, consultants and representatives who have access to any Confidential Information to comply with all the terms of this Section. Information received by the receiving Party shall not be Confidential Information if: 10 Item 8 Page 16 Packet Page 213 of 582 ITEM 8 Attachment B i. it is or becomes available to the public through no wrongful act of the receiving Party; ii. it is already in the possession of the receiving Party and not subject to any confidentially agreement between the Parties; iii. it is received from a third party without restriction for the benefit of the disclosing Party and without breach of this Master Agreement; iv. it is independently developed by the receiving Party; or v. it is disclosed pursuant to a requirement of law or a duly empowered government agency or a court of competent jurisdiction after due notice and an adequate opportunity to intervene is given to the disclosing Party, unless such notice is prohibited. e. Seller acknowledges that City is a public agency and is subject to the requirements of the California Public Records Act Cal. Gov. Code section 6250 et seq. Seller may submit Confidential Information to the City pursuant to Section 12(a), above and the City will maintain such identified documents as confidential to the fullest extent allowed by law. However, upon request or demand from any third person or entity not a party to this Master Agreement ("Requestor") for production, inspection and/or copying of information designated by a disclosing Party as Confidential Information, the receiving Party shall notify the disclosing Party that such request has been made in accordance with Section 12 of this Master Agreement. Upon receipt of this notice, the disclosing Party shall be solely responsible for taking whatever legal steps may be necessary to protect the information deemed by it to be Confidential Information and to prevent release of information to the Requestor by the receiving Party. If within ten (10) days after receiving the foregoing notice from the receiving Party, the disclosing Party takes no such action, the receiving Party shall be permitted to comply with the Requestor's demand and is not required to defend against it. f. Upon termination or expiration of this Master Agreement, the receiving Party shall, at the disclosing Party's direction, either return or destroy all of the disclosing Party's Confidential Information and so certify in writing. The obligations of this provision will survive for one (1) year after any termination or expiration of this Master Agreement. 13. Publicity and Disclosure. Seller shall not use the name, tradename, trademarks, service marks of or owned by Buyer, or logos of Buyer, or share Confidential Information in any publicity releases, news releases, annual reports, product packaging, signage, stationery, print literature, advertising, websites or other media without securing the prior written approval of Buyer. Seller shall not, without the prior written consent of Buyer, represent, directly or indirectly, that any product or service offered by Seller has been approved or endorsed by Buyer. Seller agrees that Buyer may make oral and written reports and other communications regarding this Master Agreement and subsequent Contract 11 Item 8 Page 17 Packet Page 214 of 582 ITEM 8 Attachment B VER Transactions to the Palo Alto City Manager, City Council and other public officials as required by law, which reports and communications will be public reports and communications. 14. Nondiscrimination. As set forth in Palo Alto Municipal Code section 2.30.510, Seller agrees that in the performance of this Master Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. Seller acknowledges that it has read and understands the provisions of Chapter 2.30 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Chapter 2.30 pertaining to nondiscrimination in employment, including completing the form furnished by Buyer and set forth in Exhibit B. 15. Choice of Law. The laws of the State of California shall be applied and be controlling for all purposes and all matters relating to this Master Agreement. In the event that an action is brought, the Parties agree that trial of such action will be vested exclusively in the United States District Court for the Northern District of California in the County of Santa Clara, State of California. 16. Entire Agreement. This Master Agreement constitutes the entire agreement between the Parties relating to the subject matter hereof and supersedes all prior agreements, understandings, negotiations, whether oral or written, of the Parties. 17. Amendments. Except to the extent herein provided, no amendment, supplement, modification, termination or waiver of this Master Agreement shall be enforceable unless executed in writing by the Party to be bound thereby. 18. Assignment. This Master Agreement is binding on any successors and assigns of the Parties. Neither Party may otherwise transfer or assign this Master Agreement, in whole or in part, without the other Party's written consent. Such consent shall not be unreasonably withheld, conditioned or delayed. 19. Non -Waiver; No third Party Beneficiaries. 12 Item 8 Page 18 Packet Page 215 of 582 ITEM 8 Attachment B No waiver by any Party of any of its rights with respect to the other Party or with respect to this Master Agreement or any matter or default arising in connection with this Master Agreement, shall be construed as a waiver of any other right, matter or default. Any waiver shall be in writing signed by the waiving Party. No payment, partial payment, acceptance or partial acceptance by Buyer will operate as a waiver on the part of the Buyer of any of its rights under the Master Agreement. This Master Agreement and subsequent Confirmation Letters are made and entered into for the sole benefit of the Parties, and their permitted successors and assigns, and no other Person shall be a direct or indirect legal beneficiary of, have any rights under, or have any direct or indirect cause of action or claim in connection with this Master Agreement. 20. Severability. In the event that any provision of the Master Agreement is found to be void or unenforceable, such findings shall not be construed to render any other provision of the Master Agreement either void or unenforceable, and all other provisions shall remain in full force and effect unless the provisions which are void or unenforceable shall substantially affect the rights or obligations granted to or undertaken by either Party. 21. Force Maieure. Neither Seller shall be liable in any respect for failure to Deliver the Contract VERs to Buyer, nor Buyer shall be liable in any respect for failure to accept the Contract VERs from Seller, if such performance is hindered or prevented, directly or indirectly, by an event beyond the reasonable control of either Party, including, without limitation, war, public emergency or calamity, fire, earthquake, Acts of God, strikes, labor disturbance or actions, civil disturbances or riots, litigation brought by third parties against the Parties, or any act of a superior Governmental Authority or court order. Force Majeure may not be based on (i) Seller's ability to sell the Contract VERs to another at a price greater than the Unit Price specified in the Confirmation Letter, (ii) Buyer's inability economically to use the Contract VERs, or (iii) Buyer's ability to purchase Contract VERs at a price less than the Unit Price specified in the Confirmation Letter. 22. Exhibits. The exhibits attached hereto are incorporated into this Master Agreement by reference. The exhibits may only be revised upon mutual written agreement between the Parties unless otherwise specified in the exhibits. 23. Compliance with the Law. 13 Item 8 Page 19 Packet Page 216 of 582 ITEM 8 Attachment B Each Party will comply with all lawful federal, state and local law, ordinances, resolutions, rate schedules, rules and regulations that may affect its rights and obligations under the Master Agreement. 24. Fiscal Provisions. The Transactions under this Master Agreement are subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. The Master Agreement and all related Confirmation Letters and Agreements will terminate without penalty (i) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (ii) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal years and funds for the City's obligations are no longer made available. This provision will take precedence in the event of a conflict with any other term or condition of the Master Agreement or a Confirm. 25. Interpretation. In this Agreement, unless the context requires another meaning, a reference : a. To any document (including this Agreement) is to that document as varied, amended, novated, ratified or replaced from time to time; b. To any Party includes that Party's executors, administrators, successors and permitted assigns, including any person taking by way of novation and, in the case of a trustee, includes any substituted or additional trustee; c. To the singular includes the plural and vice versa, and to a gender includes all genders; d. To the Sections are inserted for convenience of reference only and do not affect the interpretation of this Agreement; e. To a Confirmation Letter is to the active Confirmation Letter; and f. If there is any conflict between the provisions of an applicable Confirmation Letter and any other provisions of this Master Agreement, if it has been signed by both Parties, the terms of that Confirmation Letter will prevail. IN WITNESS WHEREOF, each of the Parties hereto acknowledge that they have read the terms and conditions contained herein, understand and agree to the same and agree to be bound thereby and have caused this Master Agreement to be executed in duplicate originals by its duly authorized representative on the respective dates entered below. 14 Item 8 Page 20 Packet Page 217 of 582 ITEM 8 Attachment B CITY OF PALO ALTO ("BUYER") City Manager APPROVED AS TO FORM: Counsel to the City of Palo Alto APPROVED: Director of Administrative Services Director of Utilities AQC Environmental Brokerage Services, Inc. ("SELLER") By: A� Name: Jaclyn Ferlita Title: President Taxpayer Identification No. AQC EIN: 81-2975387 15 Item 8 Page 21 Packet Page 218 of 582 ITEM 8 Attachment B EXHIBIT A VERIFIED EMISSION REDUCTIONS CONFIRMATION LETTER PRO FORMA The following describes a Transaction between Buyer and Seller for the sale, purchase and delivery of Contract VERs pursuant to the terms and conditions of the Verified Emission Reductions Purchase and Sale Agreement ("Master Agreement") between the City of Palo Alto and dated , 20. Initially capitalized terms used and not otherwise defined herein are defined in the Master Agreement. Basic Commercial Terms: Transaction Date: Seller: Buyer: City of Palo Alto Product: VERs Registry: Project Name and Registry ID: Project Location: Vintage Year(s): Quantity of Contract VERs: Unit Price ($/VER): VER Payment ($): This Confirmation Letter is executed pursuant to and in accordance with the Master Agreement, and constitutes part of and is subject to the terms and provisions of the Master Agreement. The Parties agree to the Transaction set forth herein. City of Palo Alto ("Buyer") XXX("Seller") Signature Signature Name Name Title Title Date Date 16 Item 8 Page 22 Packet Page 219 of 582 ITEM 8 Attachment B EXHIBIT B CERTIFICATION OF NONDISCRIMINATION As suppliers of goods or services to the City of Palo Alto, the firm and individuals listed below certify that they do not and will not during the course of this Agreement discriminate in the employment of any person because of the race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person and that they are in compliance with all Federal, State and local directives and executive orders regarding nondiscrimination in employment. THE INFORMATION HEREIN IS CERTIFIED CORRECT BY SIGNATURE(S) BELOW. �'�C2t�vL �Ci2� G( Gem Authorized Signature: Date: October 7, 2022 17 Item 8 Page 23 Packet Page 220 of 582 DocuSign Envelope ID: OFD33FCO-1 D19-471 B-A2BA-CE4549D3BF18 ITEM 8 Attachment C ATTACHMENT C MASTER AGREEMENT FOR THE PURCHASE AND SALE OF VERIFIED EMISSION REDUCTIONS This Master Agreement for the Purchase and Sale of Verified Emission Reductions (the "Master Agreement") is made as of this 7th day of November 2023 ("Effective Date"), by and between the City of Palo Alto, California, a chartered California municipal corporation with its primary business address at 250 Hamilton Avenue, Palo Alto California 94301 ("City" or "Buyer") and SCB Brokers LLC, a limited liability company organized in the Commonwealth of Puerto Rico, with its primary business address at 2 Jose Efron Ave., Paseo del Plata Shopping Village, Building 2, Dorado, 00606, Puerto Rico ("Seller"). This Master Agreement, together with any and all Confirmation Letters and other schedules and exhibits related to Verified Emissions Reductions (as defined herein) shall be referred to as the "Agreement". RECITALS: A. The Parties wish to buy and sell Verified Emission Reductions on the terms set forth in this Master Agreement; B. Buyer wishes to enter into this Master Agreement with Seller to facilitate future Verified Emission Reductions purchases to manage various customer programs administered by the Buyer; C. Seller has access to Verified Emission Reductions and wishes to enter into this Master Agreement with Buyer to participate in the future Verified Emissions Reductions purchases that the City may undertake from time to time; and D. This Master Agreement facilitates, but does not guarantee, Seller's qualifications to competitively participate with other sellers in future Verified Emission Reductions purchases, and it does not guarantee that the City will enter into any future Verified Emission Reductions purchases with the Seller. NOW, THEREFORE, in consideration of the recitals and the covenants, terms and conditions of this Master Agreement, the Parties agree: AGREEMENT 1. Term and Termination. The term of this Master Agreement shall commence on the Effective Date, as set forth above, and shall remain in effect until terminated by either Party upon thirty (30) days' prior written notice, subject to the provisions of Section 26, except that any such termination shall not be effective until all payments, deliveries and other obligations of the Parties under this Master Agreement, and any Confirmation Letters executed thereunder, have been completed. 2. Definitions. As used in this Master Agreement, the following terms have the respective meanings set forth below, unless the context otherwise clearly indicates. Other capitalized terms are defined elsewhere in this Master Agreement. "Applicable Law" means all legally binding constitutions, treaties, statutes, laws, 1 Item 8 Page 24 Packet Page 221 of 582 DocuSign Envelope ID: OFD33FCO-1 D19-471 B-A2BA-CE4549D3BF18 ITEM 8 Attachment C ordinances, rules, regulations, orders, interpretations, permits, judgments, decrees, injunctions, writs and orders of any Governmental Authority or arbitrator that apply to the Verified Emission Reductions or any one or both of the Parties or the terms hereof. "ARB" means the California Environmental Protection Agency Air Resources Board, or any successor agency thereto. "Bankrupt" means with respect to any entity, such entity (i) files a petition or otherwise commences, authorizes or acquiesces in the commencement of a proceeding or cause of action under any bankruptcy, insolvency, reorganization or similar law, or has any such petition filed or commenced against it, (ii) makes an assignment or any general arrangement for the benefit of creditors, (iii) otherwise becomes bankrupt or insolvent (however evidenced), (iv) has a liquidator, administrator, receiver, trustee, conservator or similar official appointed with respect to it or any substantial portion of its property or assets, or (v) is generally unable to pay its debts as they fall due. "Business Day" means any day, except a Saturday, Sunday, or any day observed as a legal holiday by the City. A Business Day shall open at 8:00 a.m. and close at 5:00 p.m. Pacific Standard Time or Pacific Daylight Time, as applicable. "Confidential Information" is defined in Section 12. "Confirmation Letter" or "Confirm" means a written confirmation materially in the form of Exhibit A attached hereto. The Confirmation Letter constitutes part of, and is subject to, the terms and provisions of this Master Agreement. "Contract VERs" means the VERs specified in the Confirmation Letter and relating to the GHG Reductions generated by the Project during the Vintage Year(s). "Delivery" has the meaning specified in Section 3(b). "Delivery Deadline" means three (3) Business Days after the Transaction Date specified in an applicable Confirm. "Effective Date" has the meaning given to such term in the opening paragraph of this Master Agreement. "Force Majeure" is defined in Section 21. "Governmental Authority" means any national, federal, provincial, state, municipal, county, regional or local government, administrative, judicial or regulatory entity operating under any Applicable Law and includes any department, commission, bureau, board, administrative agency or regulatory body of any government. "GHGs" means one or more of the six greenhouse gases listed in Annex A to the Kyoto Protocol of the UNFCCC, as amended from time to time. "GHG Reduction" means the removal, limitation, reduction, avoidance, sequestration or mitigation of anthropogenic GHG emissions. "Party" or "Parties" means Buyer and Seller, individually or collectively, as applicable. "Project" means an emission reduction project that is located in the United States and an 2 Item 8 Page 25 Packet Page 222 of 582 DocuSign Envelope ID: OFD33FCO-1 D19-471 B-A2BA-CE4549D3BF18 ITEM 8 Attachment C "Offset Project" as defined by ARB and of a Project Type approved by ARB and is identified in the applicable Confirmation Letter. "Project Documentation" means documents, data or other information, whether in written or electronic form, produced by Seller or to which Seller has access relating to the Project or the Contract VERs. "Project Type" means the following Projects approved by ARB as of the Effective Date: U.S. Forest, U.S. Urban Forest, U.S. Livestock, U.S. Sourced and Destroyed Ozone Depleting Substances, U.S Mine Methane Capture, and U.S. Rice Cultivation; or any other Projects subsequently approved by ARB. "Registry" means either the Climate Action Reserve, the Verified Carbon Standard, or the American Carbon Registry or any successor registry thereto. "Transaction" means a written agreement between the Parties in the form of an applicable Confirmation Letter to undertake one or more Deliveries of Contract VERs, subject to the terms of this Master Agreement. "Transaction Date" means the date the Parties enter into a Transaction as specified on the applicable Confirm. "Unit Price" means the price for Contract VERs set forth in the applicable Confirmation Letter. "VER Payment" means an amount equal to the product of the Unit Price multiplied by the number of Contract VERs Delivered to Buyer in accordance with this Agreement. "Verification", "Verify" and "Verified" means the determination by a Verification Provider that an emissions reduction meets the requirements of the Registry as evidenced by a Verification Report and unique serial number. "Verified Emission Reduction" or "VER" means one (1) metric tonne of CO2 Equivalent (CO2e) of Verified GHG Reductions generated by the Project. "Verification Provider" means an independent verification provider accredited by a Registry (or such other verification provider proposed by Seller and accepted by Buyer in its sole discretion). "Verification Report" means any written report required by a Registry and prepared by a Verification Provider reviewing and verifying that, in accordance with Project Documentation, Registry Protocols and requirements in effect at the date of its production, the Contract VERs have occurred during the Vintage Year and are eligible for registration in the Registry. "Vintage Year" means, in respect of a Contract VER, the calendar year in which the emissions reductions and removals represented thereby occurred as specified in the applicable Confirmation Letter. 3. Purchase and Sale of Verification Emission Reductions. a. Purchase and Sale. Subject to the terms and conditions of this Master Agreement, 3 Item 8 Page 26 Packet Page 223 of 582 DocuSign Envelope ID: OFD33FCO-1 D19-471 B-A2BA-CE4549D3BF18 ITEM 8 Attachment C Seller agrees to Deliver to Buyer the Contract VERs on the terms specified in an executed Confirmation Letter, a form of which is attached hereto as Exhibit A. Buyer agrees to purchase all such Contract VERs to the extent they are Delivered on or before the specified Delivery Date for such Contract VERs. b. Delivery. Seller shall deliver the Contract VERs to Buyer by the Delivery Deadline. Seller will effect delivery by retiring the Contract VERS on behalf of Buyer in Seller's Registry account identified in the Confirmation Letter, along with the notation "on behalf of the City of Palo Alto" or similar expression. The Contract VERs will be deemed to be delivered upon Buyer's receipt of an electronic confirmation from such Registry that the relevant retirement has been completed ("Delivery", and variations of such term shall have their corresponding meanings.) Title to the Contract VERs will pass from Seller to Buyer upon Delivery. c. Project Documentation. i. Verification Reports. Upon the written request of Buyer, Seller shall deliver to Buyer copies of any Verification Report(s) for the Contract VERs within ten (10) Business Days of such request. ii. Other Project Documentation. Upon the reasonable written request of Buyer, Seller shall provide to Buyer copies of Project Documentation (to the extent that such Project Documentation is made available to Seller) within ten (10) Business Days of such request. 4. Price and Payment. i. Price. Buyer agrees to buy the applicable Contract VERs from Seller at the Unit Price specified in the applicable Confirm for each Contract VER Delivered to Buyer. Seller agrees to pay all Registry fees associated with the issuance and Delivery of the Contract VERs to Buyer. ii. Billing and Terms of Payment. a. Buyer will remit the VER Payment to Seller net thirty (30) days after the date Buyer receives a properly prepared and accurate invoice sent to Buyer's address for Contract VERs that have been Delivered. Buyer has no obligation to make payment for any Contract VERs that have not been Delivered in accordance with Section 3(b). b. An invoice that is properly prepared shall include at a minimum: i. Seller's complete name and address where payment is to be remitted; 4 Item 8 Page 27 Packet Page 224 of 582 DocuSign Envelope ID: OFD33FCO-1 D19-471 B-A2BA-CE4549D3BF18 ITEM 8 Attachment C ii. Buyer's complete name and address where bill is to be sent; iii. The Unit Price; iv. The VER Payment; v. Invoice date; vi. Terms of payment, including any applicable discount calculations; and vii. Tax amount/rate information, if applicable. c. Payment may be made by wire transfer. Payment by check shall be considered made when received by Seller. Wiring instructions: Bank Name: Bank ABA: Account Name: Account Number: iii. Taxes and Fees. 5. Events of Default. FirstBank Puerto Rico 221571473 SCB Brokers LLC 0909205000 a. Seller will pay all taxes and fees arising prior to Delivery. b. Seller will pay all mandatory taxes and fees arising out of the transactions contemplated by this Agreement levied by a government or other competent public taxing authority on the transfer of the Contract VERs to Buyer, including any sales tax (if applicable). c. Each Party will pay for its own income, property or ad valorem taxes. A Party is in default hereunder if that Party does any of the following (each an "Event of Default"): a. the failure of any Party to make any payment when due if such failure is not remedied within thirty (30) days after receipt of written notice of such failure, provided that if the Buyer, in good faith, disputes all or any portion of the payment, the Buyer shall pay only that portion of the payment that it does not dispute; b. in the case of Seller, if by the applicable Delivery Deadline, Seller fails to Deliver 5 Item 8 Page 28 Packet Page 225 of 582 DocuSign Envelope ID: OFD33FCO-1 D19-471 B-A2BA-CE4549D3BF18 ITEM 8 Attachment C to Buyer any Contract VERs specified on an executed Confirmation Letter and that failure is not remedied within five (5) Business Days of Buyer giving notice of that failure, and such failure is not due to Force Majeure or Buyer's failure to accept such Contract VERs following proper Delivery; c. any representation or warranty provided by either Party herein that shall prove to have been false or misleading in any material respect when made or repeated; d. the failure by a Party to perform any covenant or agreement set forth in this Master Agreement and applicable Confirmation Letters and incorporated exhibits (other than its obligations to make any payment or obligations which are otherwise specifically covered as a separate Event of Default), and such failure is not cured within fifteen (15) Business Days after written notice thereof to the affected Party; e. the Party becomes Bankrupt; or f. the failure by either Party to comply with any of its material obligations under this Agreement and that failure is not remedied within thirty (30) days of the other Party giving notice of that failure. 6. Remedies for Default. In the event of an Event of Default by either Party, the non -defaulting Party may terminate this Agreement and all of the applicable Confirmation Letters immediately upon written notice to the defaulting Party. Upon a valid termination under this provision, Seller (if the non -defaulting Party) will have no further obligation to Deliver additional Contract VERs to Buyer, and Buyer (if the non - defaulting Party) will have no further obligation to purchase additional Contract VERs under this Agreement, including with respect to any applicable Confirmation Letters that have been entered between the Parties but not yet Delivered. Termination of the Agreement under this provision will not limit in any way any remedies available to the Parties under this Agreement. 7. Representations. a. Representations by Both Parties. Each Party represents and warrants to the other Party that: i. it is a legal entity, duly formed and validly existing and in good standing under the laws of the state of its formation; ii. it has the power and authority to enter into and perform its obligations under this Agreement; iii. by entering into this Agreement, it will not breach the material terms of any contract with a third party; iv. it is not relying upon any representations of the other Party other than 6 Item 8 Page 29 Packet Page 226 of 582 DocuSign Envelope ID: OFD33FCO-1 D19-471 B-A2BA-CE4549D3BF18 ITEM 8 Attachment C those expressly set out in this Agreement; v. it has entered into this Agreement after a full opportunity to review its terms and conditions, has a full understanding of those terms and conditions and or their risks, and is capable of assuming those risks; and vi. this Agreement constitutes a legal, valid and binding obligation on it enforceable in accordance with its terms by appropriate legal remedy. b. Seller's Representations to Buyer. Seller hereby represents and warrants to Buyer that: i. it has not sold, transferred, assigned, licensed, disposed of or encumbered (nor become legally obligated to do the same) any right, title or interest in the Contract VERs covered by an applicable Confirm to any person other than Buyer and other than as contemplated in this Agreement; ii. Seller conveys the Contract VERs to Buyer free and clear of any liens, encumbrances, claims, security interests, or title defects; iii. it has the right to transfer the Contract VERs covered by an applicable Confirm to Buyer; iv. it has good title to each Contract VER and it obtained and possessed, or will obtain and possess at the time of transfer, the Contract VERs lawfully; v. any Project -related data provided to Buyer is true and correct to the best of Seller's knowledge, information and belief; vi. each Project agreed to under applicable Confirmation Letters to this Agreement is in substantial compliance with all applicable material laws and regulations, including permit requirements for the operation of such a Project; vii. no authorization, consent, notice to or registration or filing with any governmental authority is required for the execution, delivery and performance by Seller; viii. none of the execution, delivery and performance by Seller conflicts with or will results in a breach or violation of any contract or instrument to which such Seller is a party of is bound; ix. there are no proceedings by or before any governmental authority, now pending or (to the knowledge of Seller) threatened, that if adversely determined could have a material adverse effect on Seller's ability to perform Seller's obligations hereunder; x. the Contract VERs covered by an applicable Confirmation Letter have not been used by Seller or any third party to meet any international, federal, state or local requirement, renewable energy procurement, renewable portfolio standard or other mandate; 7 Item 8 Page 30 Packet Page 227 of 582 DocuSign Envelope ID: OFD33FCO-1 D19-471 B-A2BA-CE4549D3BF18 ITEM 8 Attachment C xi. Seller will not offer, sell, transfer, dispose, encumber or otherwise deal in the GHG Reductions associated with the applicable Contract VERs other than as provided herein; xii. the Contract VERs are, and will be at the time of Delivery, validly issued and in force in accordance with the protocols of the Registry specified in the applicable Confirmation Letter; xiii. the Contract VERs are, and will be immediately prior to Delivery, duly registered to Seller in the Registry specified in the applicable Confirmation Letter; xiv. neither the Seller, nor any of its associated or parent organizations or affiliates or its customers, has claimed (or will claim) directly or indirectly, including on any voluntary or mandatory greenhouse gas registry program (including EPA Climate Leaders), any of the Contract VERs to be Delivered under this Agreement or any associated GHG Reductions, carbon reductions, offsets, or benefits as part of its own carbon inventory, footprint, or other carbon statement or declaration as anything other than sold to Buyer. Any such reporting of emissions or emissions reductions shall include as Seller's emissions an amount equal to the VER Quantity and Vintages of the Contract VERs sold hereunder, and indicate their sale to Buyer; xv. the Contract VERs have been Verified by the Verification Provider in a Verification Report for the Vintage Year(s); and xvi. no document or information supplied by Seller in connection with this Agreement contains any untrue statement or omits to state a material fact necessary in order to make such document not misleading. 8. Obligations and Liabilities. a. This Master Agreement sets out the full extent of the Parties' obligations and liabilities arising out of or in connection with this Master Agreement, and there are no conditions, warranties, representations or terms, express or implied, that are binding on the Parties except as specifically stated in this Master Agreement. Any condition, warranty, representation or other term which might otherwise be implied into or incorporated in this Master Agreement, whether by statute, common law or otherwise, is hereby expressly excluded. b. Save as expressly provided otherwise in this Master Agreement, neither Party will be liable under or in connection with this Master Agreement for any loss of income, loss or profits or loss of contracts, or for any consequential, incidental, punitive, exemplary, or indirect losses or damages in tort (including negligence), contract, or otherwise pursuant to this Section 8, except for any claims indemnified pursuant to Section 9. 8 Item 8 Page 31 Packet Page 228 of 582 DocuSign Envelope ID: OFD33FCO-1 D19-471 B-A2BA-CE4549D3BF18 ITEM 8 Attachment C 9. Indemnification a. Indemnification of Buyer: To the fullest extent permitted by Applicable Law, Seller agrees to protect, defend, hold harmless and indemnify Buyer, its City Council, commissioners, officers, employees, volunteers and agents from and against any claim, injury, liability, loss, cost, and/or expense or damage, including all costs and reasonable attorney's fees in providing a defense to any claim arising therefrom, for which Buyer shall become liable arising from Seller's acts, errors, or omissions with respect to or in any way pursuant to this Master Agreement and subsequent transactions and related Confirmation Letters, except for claims, liabilities and damages caused by the Buyer's sole negligence or willful misconduct. b. Indemnification of Seller: To the fullest extent permitted by Applicable Law, Buyer agrees to protect, defend, hold harmless and indemnify Seller, its board of directors, officers, employees, volunteers and agents from and against any claim, injury, liability, loss, cost, and/or expense or damage, including all costs and reasonable attorney's fees in providing a defense to any claim arising therefrom, for which Seller shall become liable arising from Buyer's negligent, reckless or wrongful acts, errors, or omissions with respect to or in any way connected with the maintenance, assistance and services performed by Buyer pursuant to this Master Agreement and subsequent and related Confirmation Letters, except for claims, liabilities and damages caused by the Seller's comparative negligence or willful misconduct. 10. Relationship of the Parties. The relationship of the Parties under this Master Agreement is that of independent contractors. The Parties specifically state their intention that this Master Agreement is not intended to create a partnership or any other co -owned enterprise unless specifically agreed to by the Parties in a separate written instrument. Except as specifically provided herein, each Party shall continue to have the right to contract independent of the other Party with individuals and entities. Each Party shall be responsible for its own operating expenses and personnel expenses. 11. Notices. All notices required or permitted to be given hereunder in writing shall, unless expressly provided otherwise, be in writing, properly addressed, postage pre -paid and delivered by hand, facsimile, certified or registered mail, courier or electronic messaging system to the appropriate address as either Party may designate from time to time by providing notice thereof to the other Party. If to Buyer: If to Seller: 9 Item 8 Page 32 Packet Page 229 of 582 DocuSign Envelope ID: OFD33FCO-1 D19-471 B-A2BA-CE4549D3BF18 ITEM 8 Attachment C 250 Hamilton Ave. Palo Alto, CA 94301 Attention: City Clerk Phone: 650-329-2571 Fax: 650-328-3631 With a copy to: 250 Hamilton Ave. Palo Alto, CA 94301 Attention: Director of Utilities Phone: 650-329-2277 Fax: 650-329-2154 PMB 324, 425 Carr 693 Suite 1 Dorado, PR Attn: Operations Department Email: opscarbonkstarcb.com Notices delivered by facsimile or by an electronic messaging system shall require confirmation through a reply facsimile or electronic message. 12. Confidential Information. a. "Confidential Information" shall mean and include information consisting of documents and materials of a disclosing Party and/or any other technical, financial or business information of or about a disclosing Party which is not available to the general public, as well as all information derived from such information, which is furnished or made available to the other Party and is clearly labeled, marked or otherwise identified as "confidential" or "proprietary information." b. The disclosing Party is the Party to whom the Confidential Information originally belongs and who shall, after appropriate notice from the receiving Party, bear the burden of pursuing any legal remedies to retain the confidential status of the Confidential Information, as set forth in Section 12(e), below. c. Confidential Information disclosed by either Party to the other shall be held by the receiving Party in confidence, and shall not be: i. used by the recipient to the detriment of the disclosing Party; or ii. made available for third parties to use. d. Each Party will direct its employees, contractors, consultants and representatives who have access to any Confidential Information to comply with all the terms of this Section. Information received by the receiving Party shall not be Confidential Information if: 10 Item 8 Page 33 Packet Page 230 of 582 DocuSign Envelope ID: OFD33FCO-1 D19-471 B-A2BA-CE4549D3BF18 ITEM 8 Attachment C i. it is or becomes available to the public through no wrongful act of the receiving Party; ii. it is already in the possession of the receiving Party and not subject to any confidentially agreement between the Parties; iii. it is received from a third party without restriction for the benefit of the disclosing Party and without breach of this Master Agreement; iv. it is independently developed by the receiving Party; or v. it is disclosed pursuant to a requirement of law or a duly empowered government agency or a court of competent jurisdiction after due notice and an adequate opportunity to intervene is given to the disclosing Party, unless such notice is prohibited. e. Seller acknowledges that City is a public agency and is subject to the requirements of the California Public Records Act Cal. Gov. Code section 6250 et seq. Seller may submit Confidential Information to the City pursuant to Section 12(a), above and the City will maintain such identified documents as confidential to the fullest extent allowed by law. However, upon request or demand from any third person or entity not a party to this Master Agreement ("Requestor") for production, inspection and/or copying of information designated by a disclosing Party as Confidential Information, the receiving Party shall notify the disclosing Party that such request has been made in accordance with Section 12 of this Master Agreement. Upon receipt of this notice, the disclosing Party shall be solely responsible for taking whatever legal steps may be necessary to protect the information deemed by it to be Confidential Information and to prevent release of information to the Requestor by the receiving Party. If within ten (10) days after receiving the foregoing notice from the receiving Party, the disclosing Party takes no such action, the receiving Party shall be permitted to comply with the Requestor's demand and is not required to defend against it. f. Upon termination or expiration of this Master Agreement, the receiving Party shall, at the disclosing Party's direction, either return or destroy all of the disclosing Party's Confidential Information and so certify in writing. The obligations of this provision will survive for one (1) year after any termination or expiration of this Master Agreement. 13. Publicity and Disclosure. Seller shall not use the name, tradename, trademarks, service marks of or owned by Buyer, or logos of Buyer, or share Confidential Information in any publicity releases, news releases, annual reports, product packaging, signage, stationery, print literature, advertising, websites or other media without securing the prior written approval of Buyer. Seller shall not, without the prior written consent of Buyer, represent, directly or indirectly, that any product or service offered by Seller has been approved or endorsed by Buyer. Seller agrees that Buyer may make oral and written reports and other communications regarding this Master Agreement and subsequent Contract iI Item 8 Page 34 Packet Page 231 of 582 DocuSign Envelope ID: OFD33FCO-1 D19-471 B-A2BA-CE4549D3BF18 ITEM 8 Attachment C VER Transactions to the Palo Alto City Manager, City Council and other public officials as required by law, which reports and communications will be public reports and communications. 14. Nondiscrimination. As set forth in Palo Alto Municipal Code section 2.30.510, Seller agrees that in the performance of this Master Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. Seller acknowledges that it has read and understands the provisions of Chapter 2.30 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Chapter 2.30 pertaining to nondiscrimination in employment, including completing the form furnished by Buyer and set forth in Exhibit B. 15. Choice of Law. The laws of the State of California shall be applied and be controlling for all purposes and all matters relating to this Master Agreement. In the event that an action is brought, the Parties agree that trial of such action will be vested exclusively in the United States District Court for the Northern District of California in the County of Santa Clara, State of California. 16. Entire Agreement. This Master Agreement constitutes the entire agreement between the Parties relating to the subject matter hereof and supersedes all prior agreements, understandings, negotiations, whether oral or written, of the Parties. 17. Amendments. Except to the extent herein provided, no amendment, supplement, modification, termination or waiver of this Master Agreement shall be enforceable unless executed in writing by the Party to be bound thereby. 18. Assignment. This Master Agreement is binding on any successors and assigns of the Parties. Neither Party may otherwise transfer or assign this Master Agreement, in whole or in part, without the other Party's written consent. Such consent shall not be unreasonably withheld, conditioned or delayed. 19. Non -Waiver; No third Party Beneficiaries. 12 Item 8 Page 35 Packet Page 232 of 582 DocuSign Envelope ID: OFD33FCO-1 D19-471 B-A2BA-CE4549D3BF18 ITEM 8 Attachment C No waiver by any Party of any of its rights with respect to the other Party or with respect to this Master Agreement or any matter or default arising in connection with this Master Agreement, shall be construed as a waiver of any other right, matter or default. Any waiver shall be in writing signed by the waiving Party. No payment, partial payment, acceptance or partial acceptance by Buyer will operate as a waiver on the part of the Buyer of any of its rights under the Master Agreement. This Master Agreement and subsequent Confirmation Letters are made and entered into for the sole benefit of the Parties, and their permitted successors and assigns, and no other Person shall be a direct or indirect legal beneficiary of, have any rights under, or have any direct or indirect cause of action or claim in connection with this Master Agreement. 20. Severability. In the event that any provision of the Master Agreement is found to be void or unenforceable, such findings shall not be construed to render any other provision of the Master Agreement either void or unenforceable, and all other provisions shall remain in full force and effect unless the provisions which are void or unenforceable shall substantially affect the rights or obligations granted to or undertaken by either Party. 21. Force Majeure. Neither Seller shall be liable in any respect for failure to Deliver the Contract VERs to Buyer, nor Buyer shall be liable in any respect for failure to accept the Contract VERs from Seller, if such performance is hindered or prevented, directly or indirectly, by an event beyond the reasonable control of either Party, including, without limitation, war, public emergency or calamity, fire, earthquake, Acts of God, strikes, labor disturbance or actions, civil disturbances or riots, litigation brought by third parties against the Parties, or any act of a superior Governmental Authority or court order. Force Majeure may not be based on (i) Seller's ability to sell the Contract VERs to another at a price greater than the Unit Price specified in the Confirmation Letter, (ii) Buyer's inability economically to use the Contract VERs, or (iii) Buyer's ability to purchase Contract VERs at a price less than the Unit Price specified in the Confirmation Letter. 22. Exhibits. The exhibits attached hereto are incorporated into this Master Agreement by reference. The exhibits may only be revised upon mutual written agreement between the Parties unless otherwise specified in the exhibits. 23. Compliance with the Law. 13 Item 8 Page 36 Packet Page 233 of 582 DocuSign Envelope ID: OFD33FCO-1 D19-471 B-A2BA-CE4549D3BF18 ITEM 8 Attachment C Each Party will comply with all lawful federal, state and local law, ordinances, resolutions, rate schedules, rules and regulations that may affect its rights and obligations under the Master Agreement. 24. Fiscal Provisions. The Transactions under this Master Agreement are subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. The Master Agreement and all related Confirmation Letters and Agreements will terminate without penalty (i) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (ii) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal years and funds for the City's obligations are no longer made available. This provision will take precedence in the event of a conflict with any other term or condition of the Master Agreement or a Confirm. 25. Interpretation. In this Agreement, unless the context requires another meaning, a reference : a. To any document (including this Agreement) is to that document as varied, amended, novated, ratified or replaced from time to time; b. To any Party includes that Party's executors, administrators, successors and permitted assigns, including any person taking by way of novation and, in the case of a trustee, includes any substituted or additional trustee; c. To the singular includes the plural and vice versa, and to a gender includes all genders; d. To the Sections are inserted for convenience of reference only and do not affect the interpretation of this Agreement; e. To a Confirmation Letter is to the active Confirmation Letter; and f. If there is any conflict between the provisions of an applicable Confirmation Letter and any other provisions of this Master Agreement, if it has been signed by both Parties, the terms of that Confirmation Letter will prevail. IN WITNESS WHEREOF, each of the Parties hereto acknowledge that they have read the terms and conditions contained herein, understand and agree to the same and agree to be bound thereby and have caused this Master Agreement to be executed in duplicate originals by its duly authorized representative on the respective dates entered below. 14 Item 8 Page 37 Packet Page 234 of 582 DocuSign Envelope ID: OFD33FCO-1 D19-471 B-A2BA-CE4549D3BF18 ITEM 8 Attachment C CITY OF PALO ALTO ("BUYER") City Manager APPROVED AS TO FORM: Counsel to the City of Palo Alto APPROVED: Director of Administrative Services Director of Utilities SCB BROKERS LLC ("SELLER") By: Naial,ia 1°�t,al,t,s Name: Natalia Beales Title: Executive Business Manager By: LWVI, N1 -G Cu,wt,� Name: Kevin Mc Geeney Title: Director Taxpayer Identification No. 66-0831513 15 Item 8 Page 38 Packet Page 235 of 582 DocuSign Envelope ID: OFD33FCO-1 D19-471 B-A2BA-CE4549D3BF18 ITEM 8 Attachment C EXHIBIT A VERIFIED EMISSION REDUCTIONS CONFIRMATION LETTER PRO FORMA The following describes a Transaction between Buyer and Seller for the sale, purchase and delivery of Contract VERs pursuant to the terms and conditions of the Verified Emission Reductions Purchase and Sale Agreement ("Master Agreement") between the City of Palo Alto and SCB Brokers LLC dated November 7, 2023. Initially capitalized terms used and not otherwise defined herein are defined in the Master Agreement. Basic Commercial Terms: Transaction Date: Seller: Buyer: City of Palo Alto Product: VERs Registry: Project Name and Registry ID: Project Location: Vintage Year(s): Quantity of Contract VERs: Unit Price $IVER : VER Payment ($): Delivery Date: Payment Due Date: Details of Seller's Bank Account: Purchaser's Registry Account: Special Conditions: This Confirmation Letter is executed pursuant to and in accordance with the Master Agreement, and constitutes part of and is subject to the terms and provisions of the Master Agreement. The Parties agree to the Transaction set forth herein. City of Palo Alto ("Buyer") SCB Brokers LLC ("Seller") Signature Signature Name Name Title Title Date Date 16 Item 8 Page 39 Packet Page 236 of 582 DocuSign Envelope ID: OFD33FCO-1 D19-471 B-A2BA-CE4549D3BF18 ITEM 8 Attachment C City of Palo Alto ("Buyer") SCB Brokers LLC ("Seller") Signature Signature Name Name Title Title Date Date 17 Item 8 Page 40 Packet Page 237 of 582 DocuSign Envelope ID: 0FD33FC0-1 D19-471 B-A2BA-CE4549D3BF18 ITEM 8 Attachment C EXHIBIT B CERTIFICATION OF NONDISCRIMINATION As suppliers of goods or services to the City of Palo Alto, the firm and individuals listed below certify that they do not and will not during the course of this Agreement discriminate in the employment of any person because of the race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person and that they are in compliance with all Federal, State and local directives and executive orders regarding nondiscrimination in employment. THE INFORMATION HEREIN IS CERTIFIED CORRECT BY SIGNATURE(S) BELOW. Authorized Signature Date: 08 -Nov -2023 18:25 AM PST NafaLia bf- t s Authorized Signature: Date: 08 -Nov -2023 1 4:52 PM GMT 18 Item 8 Page 41 Packet Page 238 of 582 ITEM 9 City Council Staff Report From: City Manager CITY O F Report Type: CONSENT CALENDAR PALO Lead Department: Planning and Development Services ALTO Meeting Date: February 10, 2025 Report #:2409-3487 TITLE Approval of Professional Services Contract Number C25189597 with Rutherford & Chekene in an Amount Not to Exceed $207,812 for Development of a Seismic Hazard Identification and Mitigation Program for a Period of Three Years. CEQA Status: Exempt under CEQA Guidelines 15262. RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or designee to execute Contract No. C25189597 (Attachment A), with Rutherford & Chekene, to update and advance the Seismic Hazards Identification and Mitigation Program for a term of three years and a total amount not -to -exceed $207,812, including $188,920 for basic services and $18,892 for additional services. BACKGROUND The City's efforts to mitigate seismic risks in vulnerable buildings date back to the 1986 adoption of the Seismic Hazards Identification Program, codified in Chapter 16.42 of the Palo Alto Municipal Code.1 This ordinance required mandatory evaluations and encouraged voluntary retrofits, successfully addressing unreinforced masonry structures. However, advancements in seismic science and lessons from recent seismic events in California highlight the need for more comprehensive measures. In April 2017, a comprehensive Seismic Risk Assessment Study by Rutherford & Chekene identified five additional vulnerable building types and estimated potential seismic losses if no action were to be taken. Recommendations included mandatory retrofits for certain building categories, incentives for property owners, and updates to disclosure measures. These findings laid the groundwork for future policy enhancements. 1 Palo Alto Municipal Code, Chapter 16.42: https://codelibrary.amlegaI.com/codes/paloalto/latest/paloalto ca/0- 0-0-74168 Item 9 Page 1 Packet Page 239 of 582 ITEM 9 In October 2017, the City Council directed staff to refine the seismic inventory, assess community impacts, and explore program options, disclosures, and incentives.2 This marked an important step toward expanding the seismic retrofit program, with a focus on addressing soft -story wood - frame buildings, tilt -up construction, and other high -risk structures. The project was later deprioritized to advance other work including the City's pandemic response. In August 2023 the Policy & Services Committee received a status update and reviewed initial policy considerations from the 2016 Seismic Risk Assessment Study by Rutherford & Chekene report.3 Concepts included consideration of mandatory seismic evaluations for an expanded list of vulnerable building types, alignment with modern best practices, and lessons learned from other jurisdictions. The risk assessment reflected years of study, community engagement, and policy refinement that reflected the City's interest in reducing seismic risks and improving the safety and resilience of Palo Alto's built environment. The Committee expressed support for the recommendations and was in alignment with staff's proposed next steps as outlined by staff. The subject contract has not been reviewed by the Policy & Services Committee but reflects its prior discussion and is being presented to the City Council for action. ANALYSIS In May 2024, staff advanced work toward seeking proposals from qualified firms to provide services to customize a seismic hazard identification and risk mitigation program for seismically vulnerable buildings. A request for proposals (RFP) for the project was posted on OpenGov, the City's eProcurement platform, and 3,119 vendors were notified. The solicitation period was posted for 58 days and two proposals were received. The solicitation closed on June 27, 2024. Proposal Description RFP 189597 Seismic Hazard Identification & Risk Mitigation Program Proposed Length of Project Three Years Number of Vendors Notified 3,119 Number of Proposal Packages Downloaded 37 Total Days to Respond to Proposal 58 Pre -Proposal Meeting N/A Pre -Proposal Meeting Date N/A Number of Proposals Received 2 Proposal Price Range $332,000 - $379,470 Public Link to Solicitation https://procurement.opengov.com/portal/palo- a Ito-ca/projects/94858/document 2 City Council, October 16, 2017; Agenda Item #12, SR #8207, httDS://www.CitvofDaloalto.oriz/files/assets/public/v/1/agendas-minutes-resorts/resorts/citv-manaRer-resorts cmrs/yea r-archive/2017/id-8207-seismic.pdf 3 Policy & Services Committee, August 8, 2023; Agenda Item #2, https://cityofpaloaIto.primegov.com/Portal/viewer?id=2677&type=0 Item 9 Page 2 Packet Page 240 of 582 The proposals were evaluated and determined to be responsive to the criteria identified in the RFP. Rutherford & Chekene was selected because of the quality and effectiveness of their services, the experience of their field staff, prior record of performance with the City, and their ability to provide future services. The proposed contract, totaling $207,812 including optional additional services of $18,892, reflects the scope of services necessary to advance the City's seismic hazard identification and mitigation efforts. Funding in the amount of $216,000 has been reappropriated from prior City Council funding allocated in the FY 2024 budget. The proposed work builds upon the findings of the 2016 Seismic Risk Assessment Study by refining and updating the inventory of potentially vulnerable buildings. While the previous study provided a broad assessment of at -risk structures, this phase will focus on validating and expanding that data to ensure accuracy in identifying buildings that may require retrofitting. Rutherford & Chekene will also develop a seismic hazard identification and mitigation ordinance, transitioning from risk assessment to regulatory action. This ordinance will outline potential retrofit requirements and establish a structured framework for improving seismic resilience. In addition to technical analysis, this phase will include an in-depth evaluation of retrofit techniques, financing options, and tenant displacement policies to determine which measures should be mandatory versus voluntary. This ensures that policy recommendations balance public safety with economic feasibility for property owners. Community stakeholders, including building owners, tenants, and industry professionals, will be engaged throughout the process to refine and tailor policy recommendations to Palo Alto's specific needs. This collaborative approach supports a final ordinance that is practical and effective in enhancing the city's seismic preparedness. While the Planning and Development Services Department has expertise in managing seismic - related projects, the complexity of this effort —particularly in technical policy development, stakeholder engagement, and detailed engineering analysis —requires specialized expertise that exceeds current in-house capacity. This approach allows City staff to focus on leveraging strengths in project management and community engagement while gaining access to advanced technical analysis through the consultant. Rutherford & Chekene will work closely with City staff to integrate local knowledge into the project. Regular check -ins and coordination meetings will ensure that the consultant remains informed of Palo Alto's unique needs and conditions. This collaboration will be documented through updates provided to the City Council. City staff will support the project by conducting preliminary data collection, coordinating stakeholder engagement, and managing community outreach, allowing the consultant to focus on technical and policy aspects of the program. Finally, Rutherford & Chekene will implement Item 9 Page 3 Packet Page 241 of 582 ITEM 9 program management tools and establish a long-term framework for seismic hazard mitigation that ensures long-term effectiveness. To clarify the deliverables, the work produced by Rutherford & Chekene will include an updated inventory of vulnerable buildings, a draft seismic hazard identification and mitigation ordinance, and an analysis of retrofit techniques, financing options, and tenant displacement policies. These deliverables will provide the foundation for staff recommendations to the Council, guiding decisions on mandatory versus voluntary retrofit measures and policy implementation strategies. Staff will critically evaluate these deliverables to ensure they align with Council priorities, community needs, and feasibility considerations. If discrepancies arise or further refinements are needed, staff will collaborate with the consultant and key stakeholders to adjust recommendations before presenting them to the Council for consideration. These efforts serve to mitigate seismic risks in vulnerable buildings by reducing seismic risks for both the short- and long-term. By proactively addressing building vulnerabilities and refining policies around retrofitting, tenant displacement, and financial feasibility, the City will enhance public safety, protect property, and ensure that any necessary retrofitting is conducted in a financially viable and equitable manner. This project will enhance protections against seismic events while establishing a structured and sustainable approach to long-term resilience. FISCAL/RESOURCE IMPACT Funding of $216,000 has been reappropriated from prior City Council funding in the Fiscal Year 2024 budget. Staff will monitor expenditures closely and will report any significant changes to the budget as part of the quarterly budget review process. STAKEHOLDER ENGAGEMENT Professional planners and managers in the Planning and Development Services Department participated in the development of this recommendation. Previous discussions and recommendations from the Policy & Services Committee informed this process. The project will actively involve diverse community stakeholders through advisory group meetings, public presentations, and stakeholder workshops. Specific efforts will focus on engaging property owners of vulnerable building types, tenants impacted by potential retrofits, and local experts in seismic resilience. Feedback from these groups will be considered in policy recommendations. ENVIRONMENTAL REVIEW Approval of this contract is exempt from environmental review under California Environmental Quality Act (CEQA) Guidelines Section 15262, because it authorizes only a feasibility or planning study for possible future actions that have not yet been approved or adopted. ATTACHMENTS Attachment A: Contract No. C25189597 with Rutherford & Chekene APPROVED BY: Jonathan Lait, Planning and Development Services Director Item 9 Page 4 Packet Page 242 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A CITY OF PALO ALTO CONTRACT NO. C25189597 AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND RUTHERFORD & CHEKENE This Agreement for Professional Services (this "Agreement") is entered into as of the 3rd day of February, 2025 (the "Effective Date"), by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and RUTHERFORD & CHEKENE, a California corporation, located at 101 Mission Street, Suite 300 San Francisco, CA 94105. ("CONSULTANT"). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY intends to customize a seismic hazard identification and risk mitigation program for vulnerable buildings (the "Project") and desires to engage a consultant to assess the prior study and update potentially eligible buildings, develop an updated seismic hazard identification and mitigation ordinance, and implement seismic mitigation program in connection with the Project (the "Services", as detailed more fully in Exhibit A). B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled "SCOPE OF SERVICES". NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows: SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through December 31, 2027, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled "SCHEDULE OF PERFORMANCE". Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and Professional Services Rev. Jan 29, 2024 Page 1 of 28 Item 9 Page 5 Packet Page 243 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY's agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled "COMPENSATION," including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed One Hundred Eighty Eight Thousand Nine Hundred Twenty Dollars ($188,920). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled "SCHEDULE OF RATES." Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY. ® Optional Additional Services Provision (This provision applies only if checked and a not -to -exceed compensation amount for Additional Services is allocated below under this Section 4.) In addition to the not -to -exceed compensation specified above, CITY has set aside the not - to -exceed compensation amount of Eighteen Thousand Eight Hundred Ninety -Two Dollars ($18,892) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed Two Hundred Seven Thousand Eight Hundred Twelve Dollars ($207,812), as detailed in Exhibit C. "Additional Services" means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY's Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled "PROFESSIONAL SERVICES TASK ORDER". Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY's Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter -signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Professional Services Rev. Jan 29, 2024 Page 2 of 28 Item 9 Page 6 Packet Page 244 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT's schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT's invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY's Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice. All invoices shall be submitted to the Planning Department's contract email account at PCEContracts@cityofpaloalto.org. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT's supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT's errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY's stated construction budget by ten percent (10%) or more, CONSULTANT shall make recommendations to CITY for aligning the Project design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. Professional Services Rev. Jan 29, 2024 Page 3 of 28 Item 9 Page 7 Packet Page 245 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers' compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT's performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT's provision of the Services only, and not as to the means by which such a result is obtained. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT's obligations hereunder without the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties. SECTION 12. SUBCONTRACTING. Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services with prior approval, documented in writing, including Scope of Services, cost, and duration. The use of subcontractors cannot increase compensation noted pursuant to Section 4 of this Agreement. Subcontractor identified at the initiating of the Agreement are: • SCYMA CONSULTING LLC 40760 RAINWATER COURT FREMONT, CA 94539 • VANIR CONSTRUCTION MANAGEMENT, INC. 4540 DUCKHORN DRIVE STE 300 SACRAMENTO, CA 95834 CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Bret Lizundia, Telephone: 415-568-4407, Email: blizundia@ruthchek.com as the CONSULTANT's Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day-to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT's Project Manager or any other of Professional Services Rev. Jan 29, 2024 Page 4 of 28 Item 9 Page 8 Packet Page 246 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A CONSULTANT's key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY's Project Manager. CONSULTANT, at CITY's request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property. CITY's Project Manager is George Hoyt, Planning and Development Services Department, 250 Hamilton Avenue Palo Alto, CA, 94301, Telephone: 650-329-2368, Email: george.hoyt@cityofpaloalto.org. CITY's Project Manager will be CONSULTANT's point of contact with respect to performance, progress, and execution of the Services. CITY may designate an alternate Project Manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services. SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT's records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Indemnified Party") from and against any and all third party demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney's fees, experts fees, court costs and disbursements ("Claims") to the extent that such Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. CITY will reimburse CONSULTANT for the proportionate percentage of defense costs exceeding CONSULTANT's proportionate percentage of fault as determined by the final judgment of a court of competent jurisdiction. Professional Services Rev. Jan 29, 2024 Page 5 of 28 Item 9 Page 9 Packet Page 247 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement. 16.3. The acceptance of CONSULTANT's Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 29.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled "INSURANCE REQUIREMENTS". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best's Key Guide ratings of A- :VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY's Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days' notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT's receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY's Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification Professional Services Rev. Jan 29, 2024 Page 6 of 28 Item 9 Page 10 Packet Page 248 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination. 19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials). 19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT's Services provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30. 19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers). SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager Professional Services Rev. Jan 29, 2024 Page 7 of 28 Item 9 Page 11 Packet Page 249 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement. CONSULTANT shall provide written notice to CITY of any change of address. SECTION 21. CONFLICT OF INTEREST. 21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any conflict arises. 21.3. If the CONSULTANT meets the definition of a "Consultant" as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time. SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA. 22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person's race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. 22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act ("ADA"), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY's Environmentally Preferred Purchasing policies which are available at CITY's Purchasing Department, hereby Professional Services Rev. Jan 29, 2024 Page 8 of 28 Item 9 Page 12 Packet Page 250 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY's Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and, third, recycling or composting waste. In particular, CONSULTANT shall comply with the following Zero Waste requirements: (a) All printed materials provided by CONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double -sided and printed on a minimum of 30% or greater post -consumer content paper, unless otherwise approved by CITY's Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post -consumer material and printed with vegetable -based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY's Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department's office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060. SECTION 25. NON -APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS. 26.1. This Project is not subject to prevailing wages and related requirements. CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the performance and implementation of the Project if the contract: (1) is not a public works contract; (2) is for a public works construction project of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (3) is for a public works alteration, demolition, repair, or maintenance project of Professional Services Rev. Jan 29, 2024 Page 9 of 28 Item 9 Page 13 Packet Page 251 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j). SECTION 27. CLAIMS PROCEDURE FOR "9204 PUBLIC WORKS PROJECTS". For purposes of this Section 27, a "9204 Public Works Project" means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in Exhibit F, entitled "Claims for Public Contract Code Section 9204 Public Works Projects". This Project is not a 9204 Public Works Project. SECTION 28. CONFIDENTIAL INFORMATION. 28.1. In the performance of this Agreement, CONSULTANT may have access to CITY's Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT's obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement. 28.2. "Confidential Information" means all data, information (including without limitation "Personal Information" about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT's possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY. 28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order. Professional Services Rev. Jan 29, 2024 Page 10 of 28 Item 9 Page 14 Packet Page 252 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A 28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time. 28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT. 28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions. SECTION 29. MISCELLANEOUS PROVISIONS. 29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions. 29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys' fees paid to third parties. 29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time. 29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect. 29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT's proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT's proposal (if any), the exhibits shall control. 29.7. The provisions of all checked boxes in this Agreement shall apply to this Professional Services Rev. Jan 29, 2024 Page 11 of 28 Item 9 Page 15 Packet Page 253 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A Agreement; the provisions of any unchecked boxes shall not apply to this Agreement. 29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement. 29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement. SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein: M EXHIBIT A: SCOPE OF SERVICES ® EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER ® EXHIBIT B: SCHEDULE OF PERFORMANCE ® EXHIBIT C: COMPENSATION ® EXHIBIT C-1: SCHEDULE OF RATES ® EXHIBIT D: INSURANCE REQUIREMENTS THIS A GREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED. Professional Services Rev. Jan 29, 2024 Page 12 of 28 Item 9 Page 16 Packet Page 254 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A CONTRACT No. C25189597 SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written. CITY OF PALO ALTO City Manager APPROVED AS TO FORM: City Attorney RUTHERFORD & CHEKENE Officer 1 DocuSigned by: By: Vawi11tiwta� Name: Davi iBaiiiE6423.. Title: CEO dbleiman@ruthchek.com Officer 2 (Required for Corp. or LLC) By: DocuSigned by: Name: Ellen Leong l� Title: CFO D37BA5BCC24B4F7... eleong@ruthchek.com Professional Services Rev. Jan 29, 2024 Page 13 of 28 Item 9 Page 17 Packet Page 255 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide the Services detailed in this Exhibit A, entitled "SCOPE OF SERVICES". Notwithstanding any provision herein to the contrary, CONSULTANT's duties and services described in this Scope of Services shall not include preparing or assisting CITY with any portion of CITY's preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with CITY. CITY shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. CONSULTANT's participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Scope of Services. Task A: Assessment of Prior Study and Update of Potentially Eligible Buildings Subtask A. 1: Summarize Relevant State Laws The December 21, 2016, CONSULTANT report included "Chapter II: Legislative Review Report," "Appendix A — Table of Historic California Earthquake Risk Reduction Legislation," and "Appendix B — Table of Contemporary California Earthquake Risk Reduction Legislation." They will serve as a starting point for this subtask. The California state policy landscape will be reviewed to determine what relevant state laws have been passed, what state policies are in place regarding retrofitting, what seismic retrofit standards have been updated (see Subtask A.3), and what funding sources may be available The context for this project involves a wide array of statewide policies and programs that mandate, enable, and in some cases constrain local government actions to reduce earthquake risks. State - level leadership and responsibilities related to earthquake hazards are highly fragmented among authorities such as the California Seismic Safety Commission (CSSC), Office of the State Architect (OSA), Office of Statewide Health Planning & Development (OSHPD), CalOES, the California Geological Survey (CGS), and the California Earthquake Authority (CEA), a privately funded entity. CONSULTANT will produce a concise review of relevant existing and pending state legislation. The review will synthesize the implications for Palo Alto of the following types of legislation and regulation: the California Building Code (CBC); rehabilitation standards (e.g., the California Existing Building Code, and ASCE/SEI 41); zoning and disclosure provisions (e.g., General Plan Seismic Element, Alquist-Priolo Special Studies Zone Act); targeted mandates by occupancy type or use (e.g., public schools via the 1933 Field Act, hospitals via SB1953 in 1973); targeted mandates by building type, materials, or age (e.g., URMs via SB547 in 1986); and habitability requirements and rent control policies (contained in the California Civil Code). CONSULTANT will track and document current legislative efforts and leadership on earthquake issues will through searches of the searchable real-time California Legislative Information database (https://leginfo.legislature.ca.gov/). This tracking will also utilize professional Professional Services Rev. Jan 29, 2024 Page 14 of 28 Item 9 Page 18 Packet Page 256 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A organizations' policy committees, such as the Earthquake Engineering Research Institute's Public Policy and Advocacy Committee and the Structural Engineers Association of California's Legislative Committee, among others. The review will also cover, where pertinent, findings from existing analyses of state level seismic program effectiveness, such as the CSSC's most recent reports tracking the progress of all California jurisdictions with regard to the SB547 URM law (CSSC, 2006) and the Field Act (CSSC, 2009), and the continuing struggle to achieve the objective of rehabilitating all of California's public hospitals (OSHPD, 2005; Alesch, Arendt et al. 2012). The review will also highlight any important case law or precedents regarding fiduciary responsibility and owner liability issues. This review of state legislation will distill and apply existing information and be delivered in an accessible format that provides specific, decision -ready information for the inventory, community involvement, and program development processes. Deliverables: Concise review of relevant and pending state legislation, with a summary memorandum and a slide show presentation that can be given to staff, key stakeholders, and other interested parties in a virtual meeting. Subtask A.2: Summarize Relevant Progress at the Local Level The December 21, 2016 CONSULTANT report included "Chapter III: Local Program Best Practices Assessment." It will serve as a starting point for this subtask. Using interviews, document reviews, review of council meeting minutes and presentations, CONSULTANT will investigate what has occurred in the jurisdictions covered in the 2016 report and in other jurisdictions to understand and summarize the development, implementation, refinement, and outcomes of local policies since 2016. The focus will be on how lessons learned can be applied to the CITY effort, contextualized to the specificities of CITY's building regulatory landscape. Deliverables: Concise review of local ordinances and policies, with a summary memorandum and a slide show presentation that can be given to staff, key stakeholders, and other interested parties in a virtual meeting., and other interested parties in a virtual meeting. Subtask A.3: Summarize Applicable Retrofit Techniques CONSULTANT will use FEMA 547 Techniques for the Seismic Rehabilitation of Existing Buildings, Seismic Retrofitting Alternatives for San Francisco's Unreinforced Masonry Buildings, ASCE 41-23 Seismic Evaluation and Retrofit of Existing Buildings, California Existing Building Code, California Historical Building Code and other available industry documents and standards to identify typical seismic retrofit techniques and current and proposed seismic retrofit standards and to make recommendations for Palo Alto's draft ordinance. CONSULTANT led the 2015-2016 effort in Palo Alto which developed conceptual retrofits for 12 prototype buildings. The December 21, 2016, report "Chapter VI: Conceptual Seismic Retrofitting of Representative Vulnerable Buildings," "Appendix E — Retrofit Concept Designs for 12 Prototype Buildings," and "Chapter X: Additional Recommended Program Features," will also be used to make recommendations. Deliverables: Results of our review will be summarized in a memo that lists and describes the available retrofit standards by seismic force -resisting system. Professional Services Rev. Jan 29, 2024 Page 15 of 28 Item 9 Page 19 Packet Page 257 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A Subtask A.4: Update Inventory Based on the December 21, 2016, CONSULTANT indicates that of the 2,632 buildings, 1,113 had field surveys, and 1,519 had missing attributes, such as seismic force -resisting system, number of stories, occupancy, building area, year built, and irregularities. CONSULTANT will assign the 1,113 buildings to the potential eligible list. CONSULTANT will then use available known (rather than statistically assigned) information in the database to screen out buildings from the remaining list of 1,519 buildings without field surveys. A.4-1: Field Investigation CONSULTANT will field visit the 118 building with a handheld application that uses an adapted version of FEMA P-154 to conduct a rapid visual screening for potential seismic hazards. This application will link available data, KML files, and the key data collection questions for use on an iPhone or an iPad to facilitate streamlined field visits, and real time cloud -based collection. A.4-2: Expanded Field Investigation CONSULTANT assumes task A.4-1 is done. CONSULTANT would field visit remaining buildings not originally visited and built before 1998. This would be 1,151 buildings. CONSULTANT would use the same project application tool. Deliverables: The result of this task would be a list of buildings from the eight categories of interest that are potentially eligible, using previous surveys and analytical surveys. For A.4-1 the result will be an improved list that expands the number of buildings with field visits and screening. For A.4-2, this will be a complete list of buildings based on field surveys. Task B: Development of an Updated Seismic Hazard Identification and Mitigation Ordinance Subtask B. 1: Building Types Subject to the Updated Ordinance CONSULTANT will utilize the eight categories in the 2016 report as a starting point. These eight categories, noted below, remain building types of concern in the engineering community. CONSULTANT will review these categories as informed by what other jurisdictions have done or have considered, as well as updated cost estimates (see Subtask B.7) and staff, Advisory Group (see Subtask C.2), Council (see Subtask C.3), and community input to determine if they remain the desirable categories to include in an ordinance or if refinement is needed to better address the CITY'S policy objectives. CITY'S existing Seismic Hazards Identification Program has a mandatory evaluation and reporting program, coupled with incentives for three building categories: • Category I: Buildings constructed of URM (except for those small than 1,900 sf with six or fewer occupants (10 remaining buildings) • Category II: Buildings constructed prior to January 1, 1935, containing 100 or more occupants and other than URM buildings (4 remaining buildings) Professional Services Rev. Jan 29, 2024 Page 16 of 28 Item 9 Page 20 Packet Page 258 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A • Category III: Building constructed between January 1, 1935 and August 1, 1976, containing 300 or more occupants (9 remaining buildings). The December 21, 2016 CONSULTANT report included "Chapter V: Vulnerable Building Categories." It added five more categories to the current three as follows: • Category IV: Pre -1977 soft -story wood frame (estimated 294 buildings) • Category V: Pre -1998 tilt -up concrete (estimated 99 buildings) • Category VI: Pre -1977 concrete soft -story (estimated 37 buildings) • Category VII: Pre -1998 steel moment frame (estimated 35 buildings) • Category VIII: Other pre -1977 concrete construction (estimated 170 buildings) Deliverables: CONSULTANT will prepare a memo summarizing the recommended building categories and approximate number of buildings in each category and the underlying rationale for inclusion in the proposed ordinance. Subtask B.2. Incentives & Financing CONSULTANT will work with community and city leadership to determine preferences then we will offer and engage stakeholders in evaluating different strategies the CITY could pursue for including incentives as part of its proposed program. Incentives and financing issues were extensively discussed throughout in the December 21, 2016, CONSULTANT report and were key feature in the recommended program options and were summarized in "Appendix C — Table Describing Incentives Used in Local Earthquake Risk Reduction Programs." CONSULTANT will update and expand the review of incentives using input from CITY, the Advisory Group, and the community. This review will include considerations and best practices for incentives and financing for voluntary seismic upgrades and retrofitting. CONSULTANT will assist in providing cost information for selected program incentives using estimates of the number of affected buildings. Deliverables: CONSULTANT will prepare a memo summarizing incentives and financing options to help spur voluntary retrofitting and to make retrofitting more feasible. Subtask B.3: Tenant Displacement CONSULTANT will offer recommendations to prevent or limit tenant displacement using stakeholder engagement, research, and existing/previous retrofit policies that considered and required tenant displacement. Information available from the CITY's Rental Registry Program will be used to help augment available information on rental properties. Soft story retrofits can often be done with limited impact on the residents in upper stories, but this is less true of other building types. Other building typologies that may not require tenant displacement are those that are large where phasing by story or wing is practical, although such instances may be rare. Additional incentives and financing options for residential property owners will be explored to minimize the financial burden on tenants and prevent rent increases. Impact analysis will be considered to understand the potential economic and social effects of the proposed ordinance provisions. Subtasks A. 1, A.2, and B.2 will investigate if other jurisdictions have provisions and policies in place regarding tenant displacement, which will be included in the analysis for Subtask B.3. Professional Services Rev. Jan 29, 2024 Page 17 of 28 Item 9 Page 21 Packet Page 259 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A Deliverables: CONSULTANT will prepare a memo summarizing policies to limit tenant displacement and considerations to reduce burdens and challenges on building owners and tenants if temporary relocation is required during the retrofitting process. Subtask B.4: Mandatory versus Voluntary CONSULTANT will utilize mandatory seismic strengthening ordinances like those in Los Angeles and San Francisco for URM buildings or notification, evaluation, and voluntary strengthening ordinances like Palo Alto's program to develop programs and implement the required provisions during the actual evaluation and retrofit of individual buildings. CONSULTANT will utilize existing resources and ordinances as well as current thinking about new ordinances. CONSULTANT will engage the community in developing the measures and in reaching a sufficient consensus on the measures that will be used. As part of the meetings with the community and CITY, CONSULTANT will work to develop and refine a list of mandatory and/or voluntary measures that best fit the CITY's needs. Stakeholder input will also play a key role in shaping the degree to which the proposed expanded program imposes stringent legal requirements, what those requirements are, and for which properties they will apply. The December 21, 2016, CONSULTANT report has extension discussion of mandatory vs. voluntary approaches, with the refinement into three categories as follows. • Voluntary: Seismic retrofit is voluntary. • Triggered: Seismic retrofit is triggered when the building is sold or undergoes substantial renovation. • Mandatory: Seismic retrofit is required per a fixed timeline. Based on Advisory Group and CITY input, the 2016 report created a "Summary of Recommended Policy Directions" which identified associated the categories of voluntary, triggered, and mandatory with the eight vulnerable building categories. CONSULTANT will update the discussion of voluntary, triggered, and mandatory approaches to apply to the updated proposed building categories (see Subtask B.1) using input from CITY staff, the Advisory Group, the City Council, and the community. CONSULTANT will cover the relationship between a local ordinance and the California Existing Building Code (CEBC) and the California Historical Building Code (CHBC). CONSULTANT will include recommendations on penalties and enforcement actions should owners not comply. Deliverables: CONSULTANT will prepare a memo summarizing recommendations for voluntary, triggered, and mandatory policies by building categories; the relationship with the CEBC and CHBC, and penalties and enforcement actions for noncompliance. This will feed into the draft ordinance provisions. Subtask B.5: (1) Public Disclosure In the December 21, 2016 CONSULTANT reported public disclosure issues were discussed in some detail, with examples such as mandatory disclosure to tenants of building seismic status, freedom of information requirement, public signage, searchable online listings, and official notices Professional Services Rev. Jan 29, 2024 Page 1 S of 28 Item 9 Page 22 Packet Page 260 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A placed on a title or deed. Pros and cons were discussed. CONSULTANT will discuss updates since 2016 including the impact of public disclosure on potential ordinances. In depth study, caveats, and lessons learned from the City of Portland's seismic placarding program which was placed under injunction due to a lawsuit brought on by the NAACP in 2019 will be included. Deliverables: CONSULTANT will prepare a memo summarizing issues, pros, and cons related to public disclosure and recommendations for the draft ordinance. Subtask B.6: (2) Screening versus Evaluation CONSULTANT will review screening and evaluation requirements in the ordinances of other jurisdictions and provide a synthesis comparing the approaches. CONSULTANT will develop sample forms and provisions that can be used to implement each approach. CONSULTANT will coordinate this with Subtask A.4 "Update Inventory" which also requires a form of screening. Subtask A.4 has a baseline approach without field surveys. There screening and evaluation would be necessary for the building not previously survey. If Subtask A.4 Add Alternate 1 is done, then screening would only be needed on a reduced set of buildings not visited by CONSULTANT. If Subtask A.4 Add Alternate 2 is done, then screening would necessarily be needed, but it could be done for additional confirmation. In any scenario, the more involved requirement where the owner hires a structural engineer to perform a seismic evaluation could also be done (as is required for the building categories in Palo Alto's current ordinance). Note: CONSULTANT assumes A.4-1 and A.4-2 are part of the project scope. Deliverables: CONSULTANT, in coordination with the Subtask A.4 scope, will prepare a memorandum making recommendations on whether to use a screening or evaluation approach and then develop screening and evaluation form requirements and samples that can be used as part of the ordinance. Subtask B.7: (3) Updated Retrofit and Replacement Cost Estimates Based on Current Construction Costs In the December 21, 2016 CONSULTANT report, costs were developed for replacement of buildings and for retrofitting of different building prototypes. CONSULTANT utilize these findings and update accordingly. CONSULTANT will update the costs in the December 21, 2016, report to reflect current market conditions in Palo Alto. CONSULTANT will review draft updates with the Advisory Group and other knowledgeable local professionals to obtain advice and buy -in. Deliverables: CONSULTANT will prepare updates to both the replacement costs and retrofit costs in the December 21, 2016, CONSULTANT report. Replacement cost estimates can be used to scale the lost estimate data in the December 21, 2016 CONSULTANT report. The retrofit costs will be organized by seismic retrofit method, building type, and cost per square foot. Subtask B.8: Produce Draft Ordinance CONSULTANT will utilize subtasks memorandums noted above to serve as input to the ordinance. CONSULTANT anticipates that there will be four drafts of the ordinance: Professional Services Rev. Jan 29, 2024 Page 19 of 28 Item 9 Page 23 Packet Page 261 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A • Preliminary outline: This outline will cover the topics to be included. • Draft Version 1: This will include the first draft with recommended provisions. It will incorporate comments on the preliminary outline. • Draft Version 2: This update will address comments on Version 1. • Final Draft for Council: This will address comments on Version 2 and will be vetted by City staff as acceptable for submission to Council for consideration. The different drafts will be shared at the appropriate time with CITY staff, the Advisory Group, the City Council Committee, and the City Council. Deliverables: CONSULTANT will produce an outline, two intermediate drafts, and final draft of the ordinance. B.8-1: Trial Evaluation and Retrofit: CONSULTANT will review the Draft Version 1 and Draft Version 2 ordinance language with engineers at CONSULTANT firm using a real seismic evaluation and a real seismic retrofit project. Findings from the trial runs would be incorporated into updates to the ordinance provisions. Task C: Implementation of a Seismic Mitigation Program Subtask C. 1: Develop Implementation Plan for Ordinance CONSULTANT will work with CITY staff and advisory group to develop a management plan that include a realistic list of information that can be easily input, summarized, and tracked in digital records; information fields that can be used to link the seismic risk program data to other digital records such as assessor files or GIS systems; quality assurance procedures for checking information; clearly defined roles and responsibilities; timelines and requirements for reporting of information internally and externally; procedures for gathering, assessing and implementing community feedback and suggestions; and links between the seismic risk mitigation program and activities that will occur following an earthquake, such as post -earthquake safety evaluation. CONSULTANT will develop a plan with defined roles and responsibilities with clear objectives. CONSULTANT will provide guidance on how to run an effective screening program, including detailed information on the roles of each entity in the process, discussions of the different levels of screening approaches that could be taken, and how the results could be used for various community objectives, including best practice advice to communities on managing post -disaster safety evaluations. CONSULTANT will work with CITY to determine level of activities. These could include the basic activities such as managing the notification and inventory process, reviewing evaluation reports and plan checking retrofit construction documents, and field inspections of retrofit work. Less obvious activities will include evaluating requested exceptions to the program or alternative means of compliance; managing feedback from design professionals, owners, and the public; tying pre -earthquake retrofitting to post -earthquake safety evaluations records; and managing post - earthquake safety evaluation, repair, and recovery plans. CONSULTANT will work with CITY to consider volunteer review boards of local structural engineers who review questions on the evaluation and retrofit criteria and provide the city with technical opinions that staff can use. CONSULTANT will work with CITY to finalize several key management considerations such as: Professional Services Rev. Jan 29, 2024 Page 20 of 28 Item 9 Page 24 Packet Page 262 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A • CITY personnel who will be required in each department. • The specialized skills, knowledge, and training that city personnel will need. • The sequences of tasks and activities needed to implement the ordinance. • Forms and tools that will be helpful in implementing the ordinance. • Public outreach and engagement with property owners. • Record keeping needed to track progress in retrofitting. Deliverables: CONSULTANT will produce a memorandum summarizing the items listed above. Subtask C.2: Collaborate with Advisory Group CONSULTANT can provide suggestions on the stakeholder groups that should be included and the types of expertise that would be valuable to include. CONSULTANT will support up to six Advisory Group meetings and developed agendas for each meeting, a road map for the process, presentations to share with the group, discussion points for considerations, questions where feedback and advice was needed to develop consensus, and minutes following the meetings. CONSULTANT will also recommend approaches for obtaining additional input on the draft ordinance from other stakeholders and the community including surveys, interviews, and virtual and in -person meetings. Deliverables: CONSULTANT will prepare agendas, slide presentations, and written summaries for each of the Advisory Group meetings and a memorandum with recommended approaches for obtaining additional input on the draft ordinance. Subtask C.3: Presentations to City Council and Council Committees CONSULTANT will develop schedule and protocols for this task at the first scoping meeting. CONSULTANT will attend up to eight larger, more formal meetings with the City Council and/or the Council's Policy and Services Committee to share progress updates, interpret findings, solicit input and direction, and clarify next steps. Deliverables: CONSULTANT will work with CITY staff to develop agendas drafts, slide presentations, and drafts for staff reports for each of the eight meetings. Task D: Ongoing Program Implementation D-1: Additional Meetings CONSULTANT will meet with City staff for six additional meetings to identify staff priorities and needs, discuss staff feedback on deliverables, and help plan for Advisory Group, Council committee, and City Council meetings. Professional Services Rev. Jan 29, 2024 Page 21 of 28 Item 9 Page 25 Packet Page 263 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A D-2: Project Management Support CONSULTANT will assist with start-up, outreach and/or engagement with property owners, and staff training. Tasks and deliverables are as follows. • Initial project management support: Using the plan and tools developed in Subtask C.1, we will assist CITY staff in refining the tasks, forms and tools that will be needed to effectively implement the ordinance. CONSULTANT will work with CITY staff to implement and test the record keeping process to track key features of owner and design team submittals and progress in completing ordinance requirements. • Public outreach and engagement with property owners. Using the information developed in Subtask C.1, CONSULTANT will give presentations and webinars to building owners. Preparation of presentation materials and giving three one -hour training seminars is assumed. Two will be in person, and one will be a webinar that can be recorded so that it can be viewed by owners in the future. • Staff training: CONSULTANT will provide training to CITY staff on the technical requirements of the ordinance. Preparation of presentation materials and giving two half -day training seminars as are assumed. • Technical resource: For one year, we will provide support to answer technical questions from City plan review staff on the ordinance. Professional Services Rev. Jan 29, 2024 Page 22 of 28 Item 9 Page 26 Packet Page 264 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A EXHIBIT B SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed ("NTP") from the CITY. Completion Milestones Number of Days/Weeks (as specified below) from NTP 1. Task A: Assessment of Prior Study and Projected November 2025, or to be determined Update of Potentially Eligible Buildings by CONSULTANT and CITY's Project Managers within term of Agreement 2. Task B: Development of an Updated Projected June 2026, or to be determined by Seismic Hazard Identification and CONSULTANT and CITY's Project Managers Mitigation Ordinance within term of Agreement 3. Task C: Implementation of a Seismic Projected July 2026, or to be determined by Mitigation Program CONSULTANT and CITY's Project Managers within term of Agreement 4. Task D: Ongoing Program Project July 2027, or to be determined by Implementation CONSULTANT and CITY's Project Managers within term of Agreement ® Optional Schedule of Performance Provision for On -Call or Additional Services Agreements. (This provision only applies if checked and only applies to on -call agreements per Section 1 or agreements with Additional Services per Section 4.) The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on -call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement. Professional Services Rev. Jan 29, 2024 Page 23 of 28 Item 9 Page 27 Packet Page 265 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A EXHIBIT C COMPENSATION CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for each task set forth below. CITY's Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below, provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. BUDGET SCHEDULE TASK NOT TO EXCEED AMOUNT Task A $49,610 (Assessment of Prior Study and Update of Potentially Eligible Buildings) Task B $58,040 (Development of an Updated Seismic Hazard Identification and Mitigation Ordinance) Task C $41,180 (Implementation of a Seismic Mitigation Program) Task D $40,090 (Ongoing Program Implementation) Sub -total for Services $188,920 Reimbursable Expenses (if any) $0.00 Total for Services and Reimbursable Expenses $188,920 Additional Services (if any, per Section 4) $18,892 Maximum Total Compensation $207,812 REIMBURSABLE EXPENSES CONSULTANT'S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Professional Services Rev. Jan 29, 2024 Page 24 of 28 Item 9 Page 28 Packet Page 266 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not -to -exceed amount of: $0.00. A. Travel outside the San Francisco Bay Area, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto's policy for reimbursement of travel and meal expenses. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost. All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information. Professional Services Rev. Jan 29, 2024 Page 25 of 28 Item 9 Page 29 Packet Page 267 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A EXHIBIT C -I SCHEDULE OF RATES CITY and CONSULTANT may at any time mutually agree to add new position titles, rates, and adjust listed rates so long as the changes do not increase the not to exceed amount as noted in pursuant to Section 4 of the Agreement. CONSULTANT's schedule of rates is as follows: Principal Structural Engineer $290.00 Associate Principal $225.00 Technical Adviser $250.00 Project Engineer $150.00 Scyma Consulting LLC $250.00 Vanir Construction Management, Inc. $225.00 Professional Services Rev. Jan 29, 2024 Page 26 of 28 Item 9 Page 30 Packet Page 268 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A EXHIBIT D INSURANCE REQUIREMENTS CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST'S KEY RATING OF A -:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWART) IS C0)NTINGFNT ON COMPT.TANCP WITH CITY'S TNSITRANCF RFOITTRFMFNTS AS SPFCTFIF,T) HFRFTN_ MINIMUM LIMITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH OCCURRENCE AGGREGATE YES WORKER'S COMPENSATION STATUTORY STATUTORY STATUTORY YES EMPLOYER'S LIABILITY STATUTORY YES GENERAL LIABILITY, INCLUDING BODILY INJURY $1,000,000 $1,000,000 PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $1,000,000 $1,000,000 PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY $1,000,000 $1,000,000 LIABILITY DAMAGE COMBINED. BODILY INJURY $1,000,000 $1,000,000 - EACH PERSON $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, - EACH OCCURRENCE $1,000,000 $1,000,000 INCLUDING ALL OWNED, HIRED, PROPERTY DAMAGE $1,000,000 $1,000,000 NON -OWNED BODILY INJURY AND PROPERTY $1,000,000 $1,000;000 DAMAGE, COMBINED YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN ALL DAMAGES $1,000,000 APPLICABLE), AND NEGLIGENT PERFORMANCE YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT'S AGREEMENT TO INDEMNIFY CITY. II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING EMAIL: PURCHASINGSUPPORT(2iCITYOFPALOALTO.ORG III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS: A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. Professional Services Rev. Jan 29, 2024 Page 27 of 28 Item 9 Page 31 Packet Page 269 of 582 Docusign Envelope ID: 57605AD3-FB8D-46EE-BC8E-72F16C705CF6 ITEM 9 Attachment A B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO SENT TO THE FOLLOWING EMAIL: PURCHASINGSUPPORT(i� CITYOFPALOALTO.ORG Professional Services Rev. Jan 29, 2024 Page 28 of 28 Item 9 Page 32 Packet Page 270 of 582 ITEM 10 CITY OF PALO ALTO City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Utilities Meeting Date: February 10, 2025 Staff Report: 2407-3222 TITLE Approval of Two Professional Service Agreements: Contract No. C25190944A with 4Leaf, Inc. and Contract No. C25190944B with Park Engineering, Inc in the Aggregate Amount Not -to - Exceed $3.75 Million for a Period of Five Years for On -Call Field Inspections and Construction Management Services to Support Utilities Water, Gas, and Wastewater Capital Improvement Projects; CEQA Status: Not a project. RECOMMENDATION Staff recommends that the City Council approve and authorize the City Manager or designee to execute two professional service agreements with the following service providers in the combined total amount not -to -exceed $3.75 million for a period of five years for on -call field inspections and construction management services for Water, Gas, and Wastewater Capital Improvement Projects: 1) Contract No. C25190944A with 4Leaf, Inc. (Attachment A), and 2) Contract No. C25190944B with Park Engineering, Inc. (Attachment B) EXECUTIVE SUMMARY The current total cost projections for water, gas, and wastewater (WGW) main replacement capital improvement projects (CIPs) is $14 million per year for over the next five years, in addition to $14 million for two water reservoir storage tank upgrade projects expected within the next five years. These projects will require construction staffing resources with specific utility expertise, and generally, a total of 10% of each Utilities Department CIP total project cost is budgeted for internal or external field inspections and construction management. These on - call services contracts will provide construction management and inspection services when there is insufficient internal staff available. This will allow the Utilities Department to add resources to efficiently manage workloads, uphold a high level of service to residents and businesses, and use resources with specialized expertise on complex projects. Item 10 Page 1 Packet Page 271 of 582 •Multi The requested Council approval is for an aggregate not -to -exceed amount of $3.75 million over five years in construction management and field inspection services needed to support the WGW CIPs described above, to be distributed between the two on -call professional service agreements. Staff anticipates WGW main replacement projects will use up to $750,000 annually; however, multiple WGW projects may be ongoing in the same year so these are noted as estimates, not an annual cap. The work will be assigned based on each contracting firm's hourly rates, staff availability, and specialized expertise, with City staff executing a CIP-specific Task Order under the appropriate contract. Each contract includes a five-year extension option. Council approval is required for exercising any of these options. BACKGROUND The City of Palo Alto owns, operates, and maintains a full suite of utilities for its residents and businesses. The utilities include a potable water distribution and transmission system, a natural gas distribution system, a wastewater collection system, and electrical and fiber optic distribution systems. The Utilities Department invests in CIPs to ensure future reliability of the utility systems, enhance operational safety, and minimize maintenance costs. Capital improvement construction projects require full-time inspection and construction management to ensure work performed by contractors complies with Utility Standards, engineered plans, and federal and state regulations. The daily responsibilities of the engineering inspectors and construction management include ensuring safety practices are followed and traffic controls are in place as approved, creating record drawings of the utility improvements for Geographic Information System (GIS) updates to aid in future designs and avoid damage during future excavations, and collaborating with utility project managers to ensure project delivery is on time and within budget. The Utilities Department anticipates a peak in WGW CIP workload in coming years that exceeds engineering staffing resources for field inspection and construction management. These projects will require contract inspectors and construction managers with utility -specific experience when there is insufficient internal staff. Occasionally, some projects, such as the Water Reservoir Storage Tank Upgrade and Rebuild Project or Arastradero Creek Restoration Project, will require inspectors or construction managers with specialized expertise. Having two on -call field inspection and construction management services contracts for WGW CIPs will allow the Utilities Department flexibility to use external resources to provide additional coverage for inspection, construction management, and other professional services, and to assign work based on which firm has the appropriate expertise and availability. When soliciting contract inspectors or construction managers for a specific CIP, staff contacts each company and requests qualified staffing for the project. Candidate resumes are provided by each company for available personnel with the requested experience. Staff evaluates each resume and the candidate's availability compared to when the project is anticipated to start. If a candidate is not available, staff can move around internal resources or delay the project until Item 10 Page 2 Packet Page 272 of 582 iiIa►!Itii a qualified candidate is available. Having two companies under contract allows flexibility to onboard a qualified candidate and ensure the CIP starts on time with qualified staff. The agreements with 4Leaf, Inc. and Park Engineering Inc. will replace the current five-year agreements with 4Leaf, Inc. and Park Engineering, Inc. that are set to expire in February 2025 (Council Report ID # 108781). ANALYSIS Generally, a total of 10% of Utilities' CIP total project cost is budgeted for internal or external field inspections and construction management. Currently the WGW division has three (3) full- time inspectors that provide oversight of construction activities performed by contractors on WGW CIP projects. However, depending on the number of projects underway at a given time, these on -call contracts are necessary to provide adequate project inspection and construction management for upcoming projects that require specialized utility experience and to support multiple concurrent CIPs. Summary of Solicitation Process A Request for Proposal (RFP #1909442) for on -call field inspection and construction management services across WGW, electric, and fiber divisions, was issued via OpenGov on June 4, 2024. A total of 3,258 providers were notified in the City's electronic procurement system. At the end of the advertisement period, two proposals for WGW CIPs were received from 4Leaf, Inc. and Park Engineering, Inc. The criteria in selecting the firms include experience in working on WGW projects, sufficient staffing, cost to the City, quality of the proposal, and prior record of performance with the City or other agencies. Staff verified the criteria and proposals of the firms to be satisfactory. A third firm, CMI Contractors, Inc., responded for the electric and fiber services, which will come before Council separately. 4Leaf, Inc. and Park Engineering, Inc. have established performance records working on City WGW CIP and non-CIP projects under existing On -Call Inspection contracts, which expire on February 28, 2025 (Council Report ID # 10878). Staff recommends the contracts be awarded to 4Leaf, Inc. and Park Engineering, Inc to ensure the availability of experienced staff when needed. On -call services will be assigned on a Task Order basis depending on which contractor has the staffing availability and relevant expertise for an upcoming City WGW CIP. When services are needed, the City will contact the firms regarding their availability to perform the necessary work and request project -specific proposals and resumes for proposed staff. Individual Utilities project managers will be responsible for evaluating the adequacy of each Task Order's proposed scope of work, reviewing the experience and billing rates of proposed staff with a project team, ensuring 1 Council Report ID # 10878 https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes- reports/reports/city-manager-reports-cmrs/yea r-archive/2020/id-10878-mini-packet-02.10.20.pdf?t=40116.21 1 RFP #190944 https://procurement.opengov.com/portal/palo-alto-ca/proiects/98927 Item 10 Page 3 Packet Page 273 of 582 ITEM 10 appropriately qualified staff are assigned to each Task Order, and managing each Task Order budget. To provide checks and balances, the Utilities' Strategic Business Manager and their team will assist in overall contract management ensuring activities remain withing authorized levels. Proposal Title On -Call Field Inspection and Construction Management Services for Utilities Proposal Number 190944 Proposed Length of Project 10 Years # of Notices sent to Providers via City's eProcurement System (OpenGov) 3,258 # of RFP Packages Downloaded by Firms 52 Total Days to Respond to Proposal 15 Calendar Days Pre -Proposal Teleconference June 13, 2024 # of Company Attendees at Pre -proposal Meeting 9 # of Proposals Received 3 Range of Cost Proposals Field Inspector: $151.82/hour to $184.51/hour Construction Manager: $170.89/hour to $256.91/hour Company Name Location (City, State) Park Engineering, Inc. 372 Village Square, Orinda, CA 94563 4Leaf, Inc. 2126 Rheem Drive, Pleasanton, CA 94588 Public Link to Solicitation OpenGov System -Solicitation Information A total not to exceed amount of $3.75 million is being requested for a five-year contract term to support the upcoming utility capital improvement projects. When the City plans WGW CIP construction, a task order with a specific dollar amount for that project will be issued to one of the two firms with the most available and qualified individuals at the time of request. In the event specialized experience or knowledge is required, Park Engineering has included pricing to subcontract work to ensure the City receives the required experience on specialized projects, which results in a larger range in hourly costs in the table above. FISCAL/RESOURCE IMPACT Funding for these contracts will be allocated as needed up to a not -to -exceed amount of $3.75 million to be distributed between the two professional service agreements for WGW inspection and construction management services over the initial term of five years. Staff anticipates WGW replacement projects will use up to $750,000 annually. There is sufficient funding budgeted in FY 2025 in the WGW capital improvement projects, examples are listed in the table below. Funding for future years of these contracts and capital projects is subject to the annual budget process and Council appropriation of funds. Item 10 Page 4 Packet Page 274 of 582 ITEM 10 Utility Project Number Project Title Adopted FY25 Budget Electric EL -19002 Colorado Substation Site Improvements $1,138,394 Water WS -09000 Water Tank Seismic Upgrade and Rehabilitation $1,037,832 STAKEHOLDER ENGAGEMENT The evaluation committee formed by staff in water, gas, wastewater, electric and fiber engineering reviewed the submitted proposals. This staff report addresses only the WGW services contracts. The evaluation of upcoming projects and future needs of on -call inspection and construction management personnel was coordinated. ENVIRONMENTAL REVIEW City Council approval of these on -call professional services contracts is not a project under CEQA, as an administrative and organizational activity of government that will not result in direct or indirect physical changes in the environment (14 CCR 15378(b)(5)). CEQA evaluations will be performed prior to Council approval of any specific CIP construction contract for which these professional construction management and field inspection services would be assigned. ATTACHMENTS Attachment A: Contract with 4Leaf; Contract C25190944A Attachment B: Contract with Park Eng; Contract C25190944B APPROVED BY: Kiely Nose, Interim Director of Utilities Staff: Matt Zucca, Assistant Director of WGW Utilities Item 10 Page 5 Packet Page 275 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A CITY OF PALO ALTO CONTRACT NO. C25190944A AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND 4LEAF, INC. This Agreement for Professional Services (this "Agreement") is entered into as of the 10th day of February, 2025 (the "Effective Date"), by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and 4LEAF, INC., a corporation, located at 2126 Rheem Drive, Pleasanton, CA 94588 ("CONSULTANT"). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY intends to support Utilities Department capital projects (the "Project") and desires to engage a consultant to provide field inspections and construction management services on an on -call, as -needed, time -limited basis in connection with the Project (the "Services", as detailed more fully in Exhibit A). B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled "SCOPE OF SERVICES". NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows: SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. N Optional On -Call Provision (This provision only applies if checked and only applies to on -call agreements.) CITY may elect to, but is not required to, authorize on -call Services up to the maximum compensation amount set forth in Section 4 (Not to Exceed Compensation). CONSULTANT shall provide on -call Services only by advance, written authorization from CITY as detailed in this Section. On -call Services, if any, shall be authorized by CITY, as needed, with a Task Order assigned and approved by CITY's Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1 entitled "PROFESSIONAL SERVICES TASK ORDER". Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for on -call Services shall be specified by CITY in the Task Order, based on Professional Services Rev. Jan 29, 2024 Page 1 of 32 Item 10 Page 6 Packet Page 276 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY's Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter -signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on -call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on -call Services are subject to all requirements and restrictions in this Agreement. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through February 9, 2030 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled "SCHEDULE OF PERFORMANCE". Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY's agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The CITY is engaging multiple consultants, none of whom, including the CONSULTANT under this Agreement, is guaranteed or assured of any minimum quantity of work to be performed. If work is performed by any one or more such consultants, CITY will ensure that total compensation to both such consultants will not exceed an aggregate of Three Million Seven Hundred Fifty Thousand Dollars ($3,750,000.00) among both consultants over the five-year Term of this Agreement. The compensation to be paid to CONSULTANT, if selected for performance of the Services, shall be based on the compensation structure detailed in one or more Task Order(s) in the format of Exhibit A-1, based on hourly schedule of rates set out in Exhibit C-1, entitled "SCHEDULE OF RATES." Any work performed or expenses incurred for which payment has not been expressly set forth in the rate schedule and/or a Task Order shall be at no cost to the CITY. ❑ Optional Additional Services Provision (This provision applies only if checked and a not -to -exceed compensation amount for Additional Services is allocated below under this Section 4.) In addition to the not -to -exceed compensation specified above, CITY has set aside the not - to -exceed compensation amount of Dollars ($ ) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed Dollars ($ ), as detailed in Exhibit C. Professional Services Rev. Jan 29, 2024 Page 2 of 32 Item 10 Page 7 Packet Page 277 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A "Additional Services" means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY's Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled "PROFESSIONAL SERVICES TASK ORDER". Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY's Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter -signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT's schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT's invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY's Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT's supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. Professional Services Rev. Jan 29, 2024 Page 3 of 32 Item 10 Page 8 Packet Page 278 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT's errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY's stated construction budget by ten percent (10%) or more, CONSULTANT shall make recommendations to CITY for aligning the Project design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers' compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT's performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT's provision of the Services only, and not as to the means by which such a result is obtained. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT's obligations hereunder without the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties. Professional Services Rev. Jan 29, 2024 Page 4 of 32 Item 10 Page 9 Packet Page 279 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A SECTION 12. SUBCONTRACTING. ® Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors. ❑ Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcontractors authorized by CITY to perform work on this Project are: CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Gene Barry, P.E., Telephone: 925-462-5959, Email: gbarry(a�41eafinc.com as the CONSULTANT's Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day-to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT's Project Manager or any other of CONSULTANT's key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY's Project Manager. CONSULTANT, at CITY's request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property. CITY's Project Manager is Kim Daryl Rasay, Utilities Department, WGW Engineering Division, 1007 Elwell Court, Palo Alto, CA, 94303, Telephone: 650-566-4510, Email: KimDaryl.Rasay(,CityofPaloAlto.org. CITY's Project Manager will be CONSULTANT's point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Professional Services Rev. Jan 29, 2024 Page 5 of 32 Item 10 Page 10 Packet Page 280 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A Scope of Services. SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT's records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Indemnified Party") from and against any and all third party demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney's fees, experts fees, court costs and disbursements ("Claims") to the extent that such Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. CITY will reimburse CONSULTANT for the proportionate percentage of defense costs exceeding CONSULTANT's proportionate percentage of fault as determined by the final judgment of a court of competent jurisdiction. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement. 16.3. The acceptance of CONSULTANT's Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 29.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled "INSURANCE REQUIREMENTS". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or Professional Services Rev. Jan 29, 2024 Page 6 of 32 Item 10 Page 11 Packet Page 281 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best's Key Rating Guide ratings of A- :VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY's Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days' notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT's receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY's Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination. 19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials). 19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Professional Services Rev. Jan 29, 2024 Page 7 of 32 Item 10 Page 12 Packet Page 282 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT's Services provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30. 19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers). SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement. CONSULTANT shall provide written notice to CITY of any change of address. SECTION 21. CONFLICT OF INTEREST. 21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any conflict arises. 21.3. If the CONSULTANT meets the definition of a "Consultant" as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time. SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA. Professional Services Rev. Jan 29, 2024 Page 8 of 32 Item 10 Page 13 Packet Page 283 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A 22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person's race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. 22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act ("ADA"), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY's Environmentally Preferred Purchasing policies which are available at CITY's Purchasing Department, hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY's Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and, third, recycling or composting waste. In particular, CONSULTANT shall comply with the following Zero Waste requirements: (a) All printed materials provided by CONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double -sided and printed on a minimum of 30% or greater post -consumer content paper, unless otherwise approved by CITY's Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post -consumer material and printed with vegetable -based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY's Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department's office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 Professional Services Rev. Jan 29, 2024 Page 9 of 32 Item 10 Page 14 Packet Page 284 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060. SECTION 25. NON -APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS. 26.1. This Project is subject to prevailing wages and related requirements as a "public works" under California Labor Code Sections 1720 et seq. and related regulations. CONSULTANT is required to pay general prevailing wages as defined in California Labor Code Section 1773.1 and Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as amended from time to time. Pursuant to Labor Code Section 1773, the CITY has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the State of California Department of Industrial Relations ("DIR"). Copies of these rates may be obtained at the CITY's Purchasing Department office. The general prevailing wage rates are also available at the DIR, Division of Labor Statistics and Research, web site (see e.g.http://www.dir.ca.gov/DLSR/PWD/index.htm) as amended from time to time. CONSULTANT shall post a copy of the general prevailing wage rates at all Project job sites and shall pay the adopted prevailing wage rates as a minimum. CONSULTANT shall comply with all applicable provisions of Division 2, Part 7, Chapter 1 of the California Labor Code (Labor Code Section 1720 et seq.), including but not limited to Sections 1725.5, 1771, 1771.1, 1771.4, 1773.2, 1774, 1775, 1776, 1777.5, 1782, 1810, 1813 and 1815, and all applicable implementing regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq. (8 CCR Section 16000 et seq.), as amended from time to time. CONSULTANT shall comply with the requirements of Exhibit E, entitled "DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS", for any contract for public works construction, alteration, demolition, repair or maintenance, including but not limited to the obligations to register with, and furnish certified payroll records directly to, DIR. SECTION 27. CLAIMS PROCEDURE FOR "9204 PUBLIC WORKS PROJECTS". For purposes of this Section 27, a "9204 Public Works Project" means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in Exhibit F, entitled "Claims for Public Contract Code Section 9204 Public Works Projects". ® This Project is a 9204 Public Works Project and is required to comply with the claims procedures set forth in Exhibit F, entitled "Claims for Public Contract Code Section 9204 Public Works Projects". Professional Services Rev. Jan 29, 2024 Page 10 of 32 Item 10 Page 15 Packet Page 285 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A SECTION 28. CONFIDENTIAL INFORMATION. 28.1. In the performance of this Agreement, CONSULTANT may have access to CITY's Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT's obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement. 28.2. "Confidential Information" means all data, information (including without limitation "Personal Information" about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT's possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY. 28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order. 28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time. 28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT. 28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the Professional Services Rev. Jan 29, 2024 Page 11 of 32 Item 10 Page 16 Packet Page 286 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions. SECTION 29. MISCELLANEOUS PROVISIONS. 29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions. 29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys' fees paid to third parties. 29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time. 29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect. 29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT'S proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT'S proposal (if any), the exhibits shall control. 29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement. 29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement. 29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement. SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein: Professional Services Rev. Jan 29, 2024 Page 12 of 32 Item 10 Page 17 Packet Page 287 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A EXHIBIT A: SCOPE OF SERVICES ® EXHIBIT A -I PROFESSIONAL SERVICES TASK ORDER ® EXHIBIT B: SCHEDULE OF PERFORMANCE ® EXHIBIT C: COMPENSATION ® EXHIBIT C -I: SCHEDULE OF RATES ® EXHIBIT D: INSURANCE REQUIREMENTS ® EXHIBIT E: DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS ® EXHIBIT F: CLAIMS FOR PUBLIC CONTRACT CODE SECTION 9204 PUBLIC WORKS PROJECTS THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED. Professional Services Rev. Jan 29, 2024 Page 13 of 32 Item 10 Page 18 Packet Page 288 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F1 7A2BDF70A ITEM 10 Attachment A CONTRACT NO. C25190944A SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written. CITY OF PALO ALTO City Manager APPROVED AS TO FORM: City Attorney or designee 4LEAF, INC. DocuSigned by: F39C2ACA1C3D430... Gene Barry Name: Title: vice President DocuSigned by €kt ��/�. do 813734D554DD4B5... Kevin Duggan Name: Title: President Professional Services Rev. Jan 29, 2024 Page 14 of 32 Item 10 Page 19 Packet Page 289 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide the Services detailed in this Exhibit A, entitled "SCOPE OF SERVICES". Notwithstanding any provision herein to the contrary, CONSULTANT's duties and services described in this Scope of Services shall not include preparing or assisting CITY with any portion of CITY's preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with CITY. CITY shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. CONSULTANT's participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Scope of Services. A. Governing Construction General Standards: Standards and references listed below shall be applicable to Services described in Sections I, II, and III below; Water -Gas -Wastewater: The Field Inspection & Construction Project Manager shall perform services in accordance with the most recent City of Palo Alto Utility (CPAU) Standards for Water, Gas, and Wastewater construction; CPAU Safety Rules manual; CPAU plans, permits, and other documents governing the construction of the project. The Field Inspector shall have knowledge of and be familiar with the applicable rules for construction from American Water Works Association (AWWA) as referenced in the City of Palo Alto WGW Standards, the Department of Public Health Federal regulations governing water pipeline installation, applicable Department of Transportation, Title 49, Code of Federal Regulations Part 192 regulations governing natural gas pipeline installations, and pollution prevention practices outlined in Stormwater Pollution Prevention Plan (SWPPP). B. Governing Qualifications: The standards and references listed below shall be applicable to Services described in Sections I, II, and III below. Personnel qualifications and staffing levels for City projects shall be subject to the approval of the City's specific Project Engineer assigned, and as set forth in a Task Order for the specific utility project. It is expected the Consultant provide appropriately experienced personnel corresponding to the utility project inspection request. The City's Project Engineer shall reserve the right to review the resume and interview any new proposed consultant personnel for City projects. References of prior inspection experience shall be available for all Consultant staff and may be requested by City at any time during the Contract. Water -Gas -Wastewater: Professional Services Rev. Jan 29, 2024 Page 15 of 32 Item 10 Page 20 Packet Page 290 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A The Consultant assigned to work on CPAU's Water, Gas, or Wastewater Projects shall have a minimum of 10 years' experience working for an Investor -Owned Utility and/or a Municipal Public Utility in the areas of distribution or transmission of water, natural gas or wastewater systems. The Field Inspector must be familiar with underground construction practices as it relates to the installation, rehabilitation, maintenance and inspection of water, gas, and wastewater pipelines. The Field Inspector shall have the ability to make sound decisions and to communicate with others and to assimilate and understand information in a manner consistent with the essential job functions. The Field Inspector shall ensure conformance with the latest City of Palo Alto Utility Standards for Water, Gas, and Wastewater Construction. For natural gas pipeline projects, the Field Inspector must successfully pass all required Operator Qualification knowledge skills exams, administered by the City of Palo Alto. The Consultant's personnel shall maintain the physical condition appropriate to the performance of the assigned duties which may include walking or standing for extended periods of time. Additionally, Consultant Construction Managers must posses a B.S. in Construction Management, Mechanical or Civil Engineering, or another relevant field. I. CONSULTANT TO PROVIDE CONSTRUCTION FIELD INSPECTION: A. Construction Inspection Services Overview Consultant shall provide professional services for field inspection of City's capital improvement projects and/or private development projects. Projects will involve aboveground/underground water, gas, or wastewater utilities. Examples of general duties: oversight of utility infrastructure installation by various methods per design drawings, specifications, and utility standards; construction management; project or schedule coordination; compliance to safety requirements and approved traffic control plans; communication with City staff, contractor, customers, and the public; preparation of record drawings, construction daily reports, and other pertinent documents; etc. The consultant shall furnish personnel with a strong background and experience (with the assigned utility) in water, gas, or wastewater construction practices and standards. Inspection services will be provided on an "as requested" basis. It is expected that the inspector(s) will be responsible for successfully completing a background check (Live Scan) within 5 business days from the request for services. Upon successful completion of the background check, it is expected the inspector(s) will be available on -site in Palo Alto within 48 hours after successful completion of a background check. Inspection services will be required during regular working hours Monday through Friday between 8am-6pm; however, work may be needed night and/or day, on weekends, holidays and/or on a split shift basis. Workweeks may be more than or less than the standard 40 -hour work week. The work schedule will be specified at the beginning of each project and documented in each Task Order (Exhibit A-1). B. General Work Description Professional Services Rev. Jan 29, 2024 Page 16 of 32 Item 10 Page 21 Packet Page 291 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A The Consultant Field Inspector shall inspect new aboveground and underground utility installations, alterations, and repairs to ensure compliance with plans, specifications, standards, and codes. The Field Inspector's responsibilities may include, but are not limited to the following: 1. Performs duties described in CPAU Inspector Checklist. 2. Maintains a daily log of construction project activity, incidents, tracks job status. 3. Complete, sign, and submit progress daily reports for approval of the City Project Manager. 4. Ensures that all applicable utility rules, codes and safety regulations are complied with. 5. Ensures all material used and facilities constructed are in accordance with approved submittals, applicable plans, specifications, and CPAU Utility Standards. 6. Notifies contractors and the City's project Engineer/Construction Project Engineer of non- compliance with the contract plans, specifications, and CPAU Utility Standards in a timely manner. 7. Reports and documents safety, compliance infractions, and unsafe work procedures. 8. Prepares inspection documentation for the development of progress payments for the project construction contractor. 9. Assists in preparing punch lists of uncompleted work, non-conformance reports, and deficiency notices. 10. Certifies as to the acceptability of each project upon its completion. 11. Conducts and generates agenda minutes of weekly field meetings. 12. Documents installed work on the as-built/record drawings daily (this may include the use of GPS equipment for data acquisition) and submits documentation as requested. 13. Documents project status with photographs and keeps project folders updated. 14. The consultant shall conduct Site Safety Inspections and work with the construction contractor at the start of projects on an "as -needed" basis. 15. Acts as the liaison between City staff, construction contractor, utility customers, and the public. 16. Coordinates the schedule between the construction contractor and Operations staff if needed. 17. Complete appropriate City required training/certification. 18. Quantify and confirm the good condition of materials provided by City from MSC/warehouse. 19. Enforce applicable permit requirements to the project construction contractor. C. Documentation & Deliverables The Consultant Field Inspector shall maintain a daily journal/diary for each day the inspector performs work on the project. The contents of the diary shall consist of brief, accurate statements of progress and conditions encountered during the prosecution of the work. A construction daily report shall be given daily to the City's assigned Project Engineer and will become a part of the permanent project record. The Field Inspector shall document field as - built drawings/notes daily and transfer the field as -built drawings/notes to a final as -built set daily or weekly. The final as -built drawings must be reviewed by the City Project Engineer weekly. Field inspection photos, incident reports, and sewer lateral inspection reports must be Professional Services Rev. Jan 29, 2024 Page 17 of 32 Item 10 Page 22 Packet Page 292 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A completed and submitted to City as required. Any safety violations and inspection infractions found are to be communicated to the City and construction contractor in real-time as they are discovered. Once a month, an electronic effort summary report (web -based or in MS Word or MS Excel format) shall be sent to the City Project Engineer summarizing job highlights related to the consultant's work hours, as well as the equipment inspected, and any infractions found. II. CONSULTANT TO PROVIDE CONSTRUCTION MANAGEMENT: A. Construction Management Overview Consultant shall provide professional services for construction management of the City's capital improvement projects and/or private development projects. Projects will involve aboveground/underground water, gas, or wastewater utilities. Examples of general duties: • construction management of utility infrastructure installation by various methods per design drawings, specifications, and utility standards; • communication with City staff, construction contractor, customers, and the public; Prepare and lead online/field weekly construction meetings; • Track, plan, and coordinate construction or project schedule with City staff and City's Project Manager; preparation and processing of field orders, change orders, request for information, permits, invoices, etc.; • Review, check, and process approval of Contractor submittals; • Review and check Contractor -submitted construction GPS points and sewer lateral video inspections; The consultant shall furnish personnel with a strong background and experience (with the assigned utility) in water, gas, or wastewater construction practices and standards. Construction management services will be provided on an "as requested" basis. It is expected that the consultant construction manager(s) will be responsible for successfully completing a background check (Live Scan) within 5 business days from the request for services. Upon successful completion of the background check, it is expected the construction project manager(s) will be available on -site in Palo Alto within 48 hours of the after successful completion of a background check. Construction management services will be required during regular working hours Monday through Friday between 8am-6pm; however, work may be needed night and/or day, on weekends, holidays and/or on a split shift basis. Workweeks may be more than or less than the standard 40 -hour work week. The work schedule will be specified at the beginning of each City project and documented in each Task Order (Exhibit A-1). B. General Work Description The Construction Project Manager shall manage new underground utility installations, alterations, and repairs to ensure compliance with plans, specifications, standards, and codes. Professional Services Rev. Jan 29, 2024 Page 18 of 32 Item 10 Page 23 Packet Page 293 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A The Construction Project Manager's responsibilities may include, but are not limited to the following duties: 1. Ensure project coordination and be the primary point of contact with all parties on the construction project. Coordination will include work coordination among the City Project Manager, assigned project field inspector, City Staff, the public, contractor, other City Divisions/Departments & working Groups, third -party specialty inspectors, etc. 2. Coordinate with City internal divisions (ex. City Public Works for street paving and painting requirements, City Traffic Engineer for review and approval of traffic plans). 3. Manage, coordinate, and complete permits and enforce permitting requirements from other City of Palo Alto Departments and external agencies. Review, quantify, and coordinate release of materials provided by the City from MSC/warehouse for the project. 4. Organize pictures taken per location and activity (tie-ins, pipe installations, meter transfers, etc.) before submitting to City Project Manager. 5. Prepare the agenda and facilitate the preconstruction meeting, weekly progress meetings, and all other construction meetings required during the project. 6. Receive, and review Change Order Requests with City Project Engineer. 7. Receive and evaluate all requests for information. Route RFIs when applicable to design teams and respond or review responses to RFI. Transmit RFI responses to the contractor. 8. Provide assistance in collection of field data (This may include the use of GPS equipment for data acquisition) and submit documentation as requested. 9. Receive and review progress payments and process for payment. 10. Receive, review, and approve Contractor submittals and shop drawings. Transmit reviews to and from design teams and contractor, as needed. 11. Request and process soil compaction testing for backfill. 12. Track project progress and schedule using Microsoft Project. 13. Attend and provide project updates in City meetings. 14. Review and check Contractor -submitted construction GPS points and sewer lateral video inspections. 15. Monitor all applicable utility rules, codes, and safety regulations are complied with and enforce compliance as needed. 16. Read and review daily inspection reports. 17. Direct field inspector as needed. 18. Perform intermittent field observations 19. Ensure all facilities are constructed in accordance with applicable plans, specifications, and CPAU Utility Standards. 20. Receive and respond to public comments and inquiries. 21. Manage complex public complaints and potential claims. 22. Perform or manage field investigations or field measurements of quantities and prepare field orders and contract modifications, as needed. Coordinate revisions with design team. 23. Prepare and review change orders with executive project manager. 24. Monitor performance of the work and prepares and issues notices of defective work and enforces compliance with the construction project documents. Reviews daily inspection reports and photos for non-conformance work. 25. Prepare punch lists and facilitates punch list walks and corrections. 26. Assist with the completion of documents. 27. Document work installed on the as-built/record drawings and submit documentation daily, Professional Services Rev. Jan 29, 2024 Page 19 of 32 Item 10 Page 24 Packet Page 294 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A weekly, monthly or as requested (This may include the use of GPS equipment for data acquisition using City -provided equipment). 28. Manage, coordinate, and complete permits required for the project. Tasks specific to Water: 1. Manage and review the preparation ofproject ect procedures and scheduling of drinking water disinfection, testing, and commissioning of new water infrastructure. Tasks specific to Gas: 1. Manage and review the preparation of project procedures and scheduling of pre -CCTV review of sewer mains, gas main and services installation, testing, tie-ins, and post -CCTV of sewer laterals. Tasks specific to Wastewater: 1. Manage and review the preparation of project procedures and scheduling including pre - CCTV review of existing sewer mains to determine the standard installation procedure of proposed sewer pipes. C. Documentation & Deliverables The Construction Project Manager shall maintain project tracking documents, logs, and filing systems at all times. The contents of the diary shall consist of brief, accurate statements of progress and conditions encountered during the prosecution of the work. A construction daily report shall be given daily to the City's assigned City Project Manager and will become a part of the permanent project record. The Construction Project Manager shall keep track of submitted as-builts, photos, and sewer lateral reports submitted by the Inspector. Once a month an electronic effort summary report (web -based or in MS Word or MS Excel format) shall be sent to the City Project Manager summarizing job highlights to the consultant's work hours, the equipment inspected, and any infractions found. III. WATER, GAS, AND WASTEWATER SPECIAL SERVICES EMPLOYEE A. Construction Management Overview and Description The City may require that Consultant provide employees, including specialized contract employees, for projects requiring special experience or knowledge, who would be onboarded by the Consultant's company if not a Consultant employee. Such onboarding by the Consultant shall occur within 10 business days from the date the City agrees to staffing a Consultant contract employee. Consultant's contract employee's positions and tasks are not limited to field inspection, construction management, consultation services, estimation, design, labor work, training, etc. The employee must be assigned to the appointed City project. Professional Services Rev. Jan 29, 2024 Page 20 of 32 Item 10 Page 25 Packet Page 295 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A EXHIBIT A -I PROFESSIONAL SERVICES TASK ORDER CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAYBE SAME AS CONTRACT /P.O. NO. ABOVE): 1B. TASK ORDER NO.: 2. CONSULTANT NAME: 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $ 5. BUDGET CODE COST CENTER COST ELEMENT WBS/CIP PHASE 6. CITY PROJECT MANAGER'S NAME & DEPARTMENT: 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: • SERVICES AND DELIVERABLES TO BE PROVIDED • SCHEDULE OF PERFORMANCE • MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) • REIMBURSABLE EXPENSES, if any (with "not to exceed" amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): I hereby authorize the performance of the I hereby acknowledge receipt and acceptance of work described in this Task Order. this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: APPROVED: CITY OF PALO ALTO COMPANY NAME: BY: BY: Name Name Title Title Date Date Professional Services Rev. Jan 29, 2024 Page 21 of 32 Item 10 Page 26 Packet Page 296 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A EXHIBIT B SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed ("NTP") from the CITY. ® Optional Schedule of Performance Provision for On -Call or Additional Services Agreements. (This provision only applies if checked and only applies to on -call agreements per Section 1 or agreements with Additional Services per Section 4.) The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on -call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement. Professional Services Rev. Jan 29, 2024 Page 22 of 32 Item 10 Page 27 Packet Page 297 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A EXHIBIT C COMPENSATION CITY agrees to compensate CONSULTANT for on -call, as -needed, time -limited project support services performed in accordance with the terms and conditions of this Agreement, and as set forth in a specific Task Order budget schedule. Compensation shall be calculated based on the rate schedule attached as Exhibit C -I up to the not to exceed budget amount for each task set forth in a specific Task Order. CITY's Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed within a specific Task Order, provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Consultant's Task Orders issued under this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in the Task Orders issued to Consultant under this Agreement shall be at no cost to the CITY. The consultant will be compensated for the actual hours worked on construction site as requested by each Project Manager/Engineer, within the Task Order budget estimate prepared by City. The work hours in the electronic effort summary report will be used as a basis for compensation; Any revisions to the Task Order budget will require a written amendment signed by authorized representatives of the Parties. The City makes no guarantee as to the actual amount of services to be requested under any Task Order. REIMBURSABLE EXPENSES CONSULTANT'S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not -to -exceed amount of: $0.00. Professional Services Rev. Jan 29, 2024 Page 23 of 32 Item 10 Page 28 Packet Page 298 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A EXHIBIT C-1 SCHEDULE OF RATES CONSULTANT'S schedule of rates is as follows: Scope Source of Services(c) Work Hours(d) Employee Hourly ate(e) Extended Rate(0 Total(s) Task I — On -call Field Inspector for WGW ® Main ❑ SubDouble e ular time $69.57 $87.93 $157.50/hr i ht Time $77.96 $98.59 $176.55/hr Overtime $103.14 $130.36 $233.50/hr Time $136.71 $169.79 $306.50/hr Task II — On -call Construction Project Managers for WGW ® Main ❑ Sub e ular time $74.73 $100.77 $175.50/hr .light Time $89.39 $112.99 $202.38/hr Overtime $118.38 $149.62 $268.00/hr JoubleTime $157.82 $197.69 $355.51/hr Task III —WGW Special Services Employee NA e ular time TBD e x 1.264(e+f) 4ight Time TBD e x 1.264 (e+f) Overtime TBD e x 1.264(e+f) Double Time TBD e x 1.264 (e+f) TOTAL NOT TO EXCEED $3,750,000 among both Consultants over the five-year term Maximum Annual Price Escalator: Year 2: 3% Year 3: 3% Year 4: 3% Year 5: 3% Notes: (a) The number of hours for the various tasks cannot be estimated at this time for an on -call contract, they will be included in a Task Order budget prepared by City at the time services are requested. (b) Rates for prevailing wage categories are subject to annual escalations in accordance with the hi -annual wage determinations from the California DIR. Rates based on California DIR's wage determinations dated September 2023 (Inspectors). (c) [Omitted intentionally] (d) Nighttime — Work begun after 5 PM or before 6 AM (1.125 x hourly rate). Overtime — Work over 8 hours Monday — Friday or 1St 8 hours on Saturdays (1.5 x hourly rate). Double Time — Work over 8 hours on Saturdays or all hours on Sundays and Holidays (2 x hourly rate). Professional Services Rev. Jan 29, 2024 Page 24 of 32 Item 10 Page 29 Packet Page 299 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A (e) Hourly rates are inclusive of travel time and no travel time will be billed by staff for daily travel to and from the project site. (t) Rate including Contractor expenses (ex. benefits, vehicle, cell phone, laptops, PPE, tools, etc.) to be added to Employee hourly rates (g) Employee Hourly Rate + Extended Rate Professional Services Rev. Jan 29, 2024 Page 25 of 32 Item 10 Page 30 Packet Page 300 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A EXHIBIT D INSURANCE REQUIREMENTS CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST'S KEY RATING OF A -:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWART) IS C0)NTINGFNT ON COMPT.TANCP WITH CITY'S TNSITRANCF RFOITTRFMFNTS AS SPFCTFIF,T) HFRFTN_ MINIMUM LIMITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH OCCURRENCE AGGREGATE YES WORKER'S COMPENSATION STATUTORY STATUTORY STATUTORY YES EMPLOYER'S LIABILITY STATUTORY YES GENERAL LIABILITY, INCLUDING BODILY INJURY $1,000,000 $1,000,000 PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $1,000,000 $1,000,000 PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY $1,000,000 $1,000,000 LIABILITY DAMAGE COMBINED. BODILY INJURY $1,000,000 $1,000,000 - EACH PERSON $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, - EACH OCCURRENCE $1,000,000 $1,000,000 INCLUDING ALL OWNED, HIRED, PROPERTY DAMAGE $1,000,000 $1,000,000 NON -OWNED BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DAMAGE, COMBINED YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN ALL DAMAGES $1,000,000 APPLICABLE), AND NEGLIGENT PERFORMANCE YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT'S AGREEMENT TO INDEMNIFY CITY. II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING EMAIL: PURCHASINGSUPPORT(2iCITYOFPALOALTO.ORG III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS: A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. Professional Services Rev. Jan 29, 2024 Page 26 of 32 Item 10 Page 31 Packet Page 301 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO SENT TO THE FOLLOWING EMAIL: PURCHASINGSUPPORT(a� CITYOFPALOALTO.ORG Professional Services Rev. Jan 29, 2024 Page 27 of 32 Item 10 Page 32 Packet Page 302 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A EXHIBIT E DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS This Exhibit shall apply only to a contract for public works construction, alteration, demolition, repair or maintenance work, CITY will not accept a bid proposal from or enter into this Agreement with CONSULTANT without proof that CONSULTANT and its listed subcontractors are registered with the California Department of Industrial Relations ("DIR") to perform public work, subject to limited exceptions. City requires CONSULTANT and its listed subcontractors, if any, to comply with all applicable requirements of the California Labor Code including but not limited to Labor Code Sections 1720 through 1861, and all applicable related regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as amended from time to time. This Exhibit E applies in addition to the provisions of Section 26 (Prevailing Wages and DIR Registration for Public Works Contracts) of the Agreement. CITY provides notice to CONSULTANT of the requirements of California Labor Code Section 1771.1(a), which reads: "A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded." This Project is subject to compliance monitoring and enforcement by DIR. All contractors must be registered with DIR per Labor Code Section 1725.5 in order to submit a bid. All subcontractors must also be registered with DIR. No contractor or subcontractor may be awarded a contract for public work on a public works project unless registered with DIR. Additional information regarding public works and prevailing wage requirements is available on the DIR web site (see e.g. http://www.dir.ca.gov) as amended from time to time. CITY gives notice to CONSULTANT and its listed subcontractors that CONSULTANT is required to post all job site notices prescribed by law or regulation. CONSULTANT shall furnish certified payroll records directly to the Labor Commissioner (DIR) in accordance with Subchapter 3, Title 8 of the California Code of Regulations Section 16461 (8 CCR Section 16461). CITY requires CONSULTANT and its listed subcontractors to comply with the requirements of Labor Code Section 1776, including but not limited to: Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, CONSULTANT and its listed subcontractors, in connection with the Project. Professional Services Rev. Jan 29, 2024 Page 28 of 32 Item 10 Page 33 Packet Page 303 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of CONSULTANT and its listed subcontractors, respectively. At the request of CITY, acting by its Project Manager, CONSULTANT and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the CITY Project Manager within ten (10) days of receipt of CITY's request. ❑ CITY requests CONSULTANT and its listed subcontractors to submit the certified payroll records to CITY's Project Manager at the end of each week during the Project. If the certified payroll records are not provided as required within the 10 -day period, then CONSULTANT and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and CITY shall withhold the sum total of penalties from the progress payment(s) then due and payable to CONSULTANT. Inform CITY's Project Manager of the location of CONSULTANT's and its listed subcontractors' payroll records (street address, city and county) at the commencement of the Project, and also provide notice to CITY's Project Manager within five (5) business days of any change of location of those payroll records. Eight (8) hours labor constitutes a legal day's work. CONSULTANT shall forfeit as a penalty to CITY, $25.00 for each worker employed in the execution of the Agreement by CONSULTANT or any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day or forty (40) hours in any one calendar week in violation of the provisions of the Labor Code, and in particular, Sections 1810 through 1815 thereof, except that work performed by employees of CONSULTANT or any subcontractor in excess of eight (8) hours per day, or forty (40) hours during any one week, shall be permitted upon compensation for all hours worked in excess of eight (8) hours per day, or forty (40) hours per week, at not less than one and one-half (1&1/2) times the basic rate of pay, as provided in Section 1815. CONSULTANT shall secure the payment of workers' compensation to its employees as provided in Labor Code Sections 1860 and 3700 (Labor Code 1861). CONSULTANT shall sign and file with the CITY a statutorily prescribed statement acknowledging its obligation to secure the payment of workers' compensation to its employees before beginning work (Labor Code 1861). CONSULTANT shall post job site notices per regulation (Labor Code 1771.4(a)(2)). CONSULTANT shall comply with the statutory requirements regarding employment of apprentices including without limitation Labor Code Section 1777.5. The statutory provisions will be enforced for penalties for failure to pay prevailing wages and for failure to comply with wage and hour laws. Professional Services Rev. Jan 29, 2024 Page 29 of 32 Item 10 Page 34 Packet Page 304 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A EXHIBIT F Claims for Public Contract Code Section 9204 Public Works Projects The provisions of this Exhibit are provided in compliance with Public Contract Code Section 9204; they provide the exclusive procedures for any claims pursuant to Public Contract Code Section 9204 related to the Services performed under this Agreement. 1. Claim Definition. "Claim" means a separate demand by the Contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following: (A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by the City. (B) Payment by the City of money or damages arising from the Services performed by, or on behalf of, the Contractor pursuant to the Agreement and payment for which is not otherwise expressly provided or to which the Contractor is not otherwise entitled. (C) Payment of an amount that is disputed by the City. 2. Claim Process. (A) Timing. Any Claim must be submitted to City in compliance with the requirements of this Exhibit no later than fourteen (14) days following the event or occurrence giving rise to the Claim. This time requirement is mandatory; failure to submit a Claim within fourteen (14) days will result in its being deemed waived. (B) Submission. The Claim must be submitted to City in writing, clearly identified as a "Claim" submitted pursuant to this Exhibit, and must include reasonable documentation substantiating the Claim. The Claim must clearly identify and describe the dispute, including relevant references to applicable portions of the Agreement, and a chronology of relevant events. Any Claim for additional payment must include a complete, itemized breakdown of all labor, materials, taxes, insurance, and subcontract, or other costs. Substantiating documentation such as payroll records, receipts, invoices, or the like, must be submitted in support of each claimed cost. Any Claim for an extension of time or delay costs must be substantiated with schedule analysis and narrative depicting and explaining claimed time impacts. (C) Review. Upon receipt of a Claim in compliance with this Exhibit, the City shall conduct a reasonable review of the Claim and, within a period not to exceed 45 days from receipt, shall provide the Contractor a written statement identifying what portion of the Claim is disputed and what portion is undisputed. Upon receipt of a Claim, the City and Contractor may, by mutual agreement, extend the time period provided in this paragraph 2. (D) If City Council Approval Required. If the City needs approval from the City Council to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the Claim, and the City Council does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a Claim sent by registered mail or certified mail, return receipt requested, the City shall have up to three days following the next duly publicly noticed meeting of the City Council after the 45 -day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion. Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 30 of 32 Item 10 Page 35 Packet Page 305 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A (E) Pam. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement. If the City fails to issue a written statement, paragraph 3, below, shall apply. 3. Disputed Claims (A) Meet and Confer. If the Contractor disputes the City's written response, or if the City fails to respond to a Claim submitted pursuant to this Exhibit within the time prescribed, the Contractor may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the City shall schedule a meet and confer conference within 30 days for settlement of the dispute. Within 10 business days following the conclusion of the meet and confer conference, if the Claim or any portion of the Claim remains in dispute, the City shall provide the Contractor a written statement identifying the portion of the Claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement. (B) Mediation. Any remaining disputed portion of the Claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The City and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the Claim has been identified in writing by the Contractor. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate the disputed portion of the Claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the Claim remaining in dispute shall be subject to any other remedies authorized by the Agreement and laws. (i) For purposes of this paragraph 3.B, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section. (ii) Unless otherwise agreed to by the City and the Contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation, if any, under Public Contract Code Section 20104.4 to mediate after litigation has been commenced. 4. City's Failure to Respond. Failure by the City to respond to a Claim from the Contractor within the time periods described in this Exhibit or to otherwise meet the time requirements of this Exhibit shall result in the Claim being deemed rejected in its entirety. A Claim that is denied by reason of the City's failure to have responded to a Claim, or its failure to otherwise meet the time requirements of this Exhibit, shall not constitute an adverse finding with regard to the merits of the Claim or the responsibility or qualifications of the Contractor. 5. Interest. Amounts not paid in a timely manner as required by this section shall bear interest at seven (7) percent per annum. Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 31 of 32 Item 10 Page 36 Packet Page 306 of 582 Docusign Envelope ID: 09779120 -60F7 -44D7 -A1 DB-7F17A2BDF70A ITEM 10 Attachment A 6. Approved Subcontractor Claims. If an approved subcontractor or a lower tier subcontractor lacks legal standing to assert a Claim against the City because privity of contract does not exist, the Contractor may present to the City a Claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on his or her own behalf or on behalf of a lower tier subcontractor, that the Contractor present a Claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the Claim be presented to the City shall furnish reasonable documentation to support the Claim. Within 45 days of receipt of this written request, the Contractor shall notify the subcontractor in writing as to whether the Contractor presented the claim to the City and, if the Contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so. 7. Waiver of Provisions. A waiver of the rights granted by Public Contract Code Section 9204 is void and contrary to public policy, provided, however, that (1) upon receipt of a Claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) the City may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of Public Contract Code Section 9204, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section. Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 32 of 32 Item 10 Page 37 Packet Page 307 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B CITY OF PALO ALTO CONTRACT NO. C25190944B AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND PARK ENGINEERING, INC. This Agreement for Professional Services (this "Agreement") is entered into as of the 10th day of February, 2025 (the "Effective Date"), by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and PARK ENGINEERING, INC., a corporation, located at 372 Village Square, Orinda, CA 94563 ("CONSULTANT"). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY intends to support Utilities Department capital projects for its Water, Gas, and Wastewater (WGW) division (the "Project") and desires to engage a consultant to provide field inspections and construction management services on an on -call, as -needed, time -limited basis in connection with the Project (the "Services", as detailed more fully in Exhibit A). B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled "SCOPE OF SERVICES". NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows: SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. ® Optional On -Call Provision (This provision only applies if checked and only applies to on -call agreements.) CITY may elect to, but is not required to, authorize on -call Services up to the maximum compensation amount set forth in Section 4 (Not to Exceed Compensation). CONSULTANT shall provide on -call Services only by advanced, written authorization from CITY as detailed in this Section. On -call Services, if any, shall be authorized by CITY, as needed, with a Task Order assigned and approved by CITY's Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1 entitled "PROFESSIONAL SERVICES TASK ORDER". Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for on -call Services shall be specified by CITY in the Task Order, based on Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 1 of 32 Item 10 Page 38 Packet Page 308 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY's Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter -signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on -call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on -call Services are subject to all requirements and restrictions in this Agreement. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through February 9, 2030 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled "SCHEDULE OF PERFORMANCE". Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY's agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The CITY is engaging multiple consultants, none of whom, including the CONSULTANT under this Agreement, is guaranteed or assured of any minimum quantity of work to be performed. If work is performed by any one or more such consultants, CITY will ensure that the total compensation to all such consultants will not exceed an aggregate of Three Million Seven Hundred Fifty Thousand Dollars ($3,750,000.00) over the five-year Term of this Agreement. The compensation to be paid to CONSULTANT, if selected for performance of the Services, shall be based on the compensation structure detailed in one or more Task Order(s) in the format of Exhibit A-1, based on hourly schedule of rates set out in Exhibit C-1, entitled "SCHEDULE OF RATES." Any work performed or expenses incurred for which payment has not been expressly set forth in the rate schedule and/or a Task Order shall be at no cost to the CITY. ❑ Optional Additional Services Provision (This provision applies only if checked and a not -to -exceed compensation amount for Additional Services is allocated below under this Section 4.) In addition to the not -to -exceed compensation specified above, CITY has set aside the not - to -exceed compensation amount of Dollars ($ ) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed Dollars ($ ), as detailed in Exhibit C. Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 2 of 32 Item 10 Page 39 Packet Page 309 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B "Additional Services" means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY's Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled "PROFESSIONAL SERVICES TASK ORDER". Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY's Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter -signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT's schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT's invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY's Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT's supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 3 of 32 Item 10 Page 40 Packet Page 310 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT's errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY's stated construction budget by ten percent (10%) or more, CONSULTANT shall make recommendations to CITY for aligning the Project design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers' compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT's performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT's provision of the Services only, and not as to the means by which such a result is obtained. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT's obligations hereunder without the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties. Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 4 of 32 Item 10 Page 41 Packet Page 311 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B SECTION 12. SUBCONTRACTING. ❑ Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors. ® Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcontractors authorized by CITY to perform work on this Project are: Zoon Engineering, Inc. CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Jaemin Park, Telephone: 925-818-3756, Email: jpark(�park-eng com as the CONSULTANT's Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day-to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT's Project Manager or any other of CONSULTANT's key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY's Project Manager. CONSULTANT, at CITY's request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property. CITY's Project Manager is Kim Daryl Rasay, Utilities Department, WGW Engineering Division, 1007 Elwell Court, Palo Alto, CA, 94303, Telephone: 650-566-4510, Email: KimDaryl.Rasay(CityofPaloAlto.org. CITY's Project Manager will be CONSULTANT's point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 5 of 32 Item 10 Page 42 Packet Page 312 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B Scope of Services. SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT's records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Indemnified Party") from and against any and all third party demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney's fees, experts fees, court costs and disbursements ("Claims") to the extent that such Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. CITY will reimburse CONSULTANT for the proportionate percentage of defense costs exceeding CONSULTANT's proportionate percentage of fault as determined by the final judgment of a court of competent jurisdiction. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement. 16.3. The acceptance of CONSULTANT's Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 29.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled "INSURANCE REQUIREMENTS". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 6 of 32 Item 10 Page 43 Packet Page 313 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best's Key Rating Guide ratings of A- :VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY's Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days' notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT's receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY's Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination. 19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials). 19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 7 of 32 Item 10 Page 44 Packet Page 314 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT's Services provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30. 19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers). SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement. CONSULTANT shall provide written notice to CITY of any change of address. SECTION 21. CONFLICT OF INTEREST. 21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any conflict arises. 21.3. If the CONSULTANT meets the definition of a "Consultant" as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time. SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA. Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 8 of 32 Item 10 Page 45 Packet Page 315 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B 22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person's race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. 22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act ("ADA"), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY's Environmentally Preferred Purchasing policies which are available at CITY's Purchasing Department, hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY's Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and, third, recycling or composting waste. In particular, CONSULTANT shall comply with the following Zero Waste requirements: (a) All printed materials provided by CONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double -sided and printed on a minimum of 30% or greater post -consumer content paper, unless otherwise approved by CITY's Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post -consumer material and printed with vegetable -based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY's Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department's office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 9 of 32 Item 10 Page 46 Packet Page 316 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060. SECTION 25. NON -APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS. 26.1. This Project is subject to prevailing wages and related requirements as a "public works" under California Labor Code Sections 1720 et seq. and related regulations. CONSULTANT is required to pay general prevailing wages as defined in California Labor Code Section 1773.1 and Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as amended from time to time. Pursuant to Labor Code Section 1773, the CITY has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the State of California Department of Industrial Relations ("DIR"). Copies of these rates may be obtained at the CITY's Purchasing Department office. The general prevailing wage rates are also available at the DIR, Division of Labor Statistics and Research, web site (see e.g.http://www.dir.ca.gov/DLSR/PWD/index.htm) as amended from time to time. CONSULTANT shall post a copy of the general prevailing wage rates at all Project job sites and shall pay the adopted prevailing wage rates as a minimum. CONSULTANT shall comply with all applicable provisions of Division 2, Part 7, Chapter 1 of the California Labor Code (Labor Code Section 1720 et seq.), including but not limited to Sections 1725.5, 1771, 1771.1, 1771.4, 1773.2, 1774, 1775, 1776, 1777.5, 1782, 1810, 1813 and 1815, and all applicable implementing regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq. (8 CCR Section 16000 et seq.), as amended from time to time. CONSULTANT shall comply with the requirements of Exhibit E, entitled "DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS", for any contract for public works construction, alteration, demolition, repair or maintenance, including but not limited to the obligations to register with, and furnish certified payroll records directly to, DIR. SECTION 27. CLAIMS PROCEDURE FOR "9204 PUBLIC WORKS PROJECTS". For purposes of this Section 27, a "9204 Public Works Project" means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in Exhibit F, entitled "Claims for Public Contract Code Section 9204 Public Works Projects". ® This Project is a 9204 Public Works Project and is required to comply with the claims procedures set forth in Exhibit F, entitled "Claims for Public Contract Code Section 9204 Public Works Projects". Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 10 of 32 Item 10 Page 47 Packet Page 317 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B SECTION 28. CONFIDENTIAL INFORMATION. 28.1. In the performance of this Agreement, CONSULTANT may have access to CITY's Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT's obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement. 28.2. "Confidential Information" means all data, information (including without limitation "Personal Information" about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT's possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY. 28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order. 28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time. 28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT. 28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 11 of 32 Item 10 Page 48 Packet Page 318 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions. SECTION 29. MISCELLANEOUS PROVISIONS. 29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions. 29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys' fees paid to third parties. 29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time. 29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect. 29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT'S proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT'S proposal (if any), the exhibits shall control. 29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement. 29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement. 29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement. SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein: Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 12 of 32 Item 10 Page 49 Packet Page 319 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B EXHIBIT A: SCOPE OF SERVICES ® EXHIBIT A -I PROFESSIONAL SERVICES TASK ORDER ® EXHIBIT B: SCHEDULE OF PERFORMANCE ® EXHIBIT C: COMPENSATION ® EXHIBIT C -I: SCHEDULE OF RATES ® EXHIBIT D: INSURANCE REQUIREMENTS ® EXHIBIT E: DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS ® EXHIBIT F: CLAIMS FOR PUBLIC CONTRACT CODE SECTION 9204 PUBLIC WORKS PROJECTS THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED. Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 13 of 32 Item 10 Page 50 Packet Page 320 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B CONTRACT NO. C25190944B SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written. CITY OF PALO ALTO City Manager APPROVED AS TO FORM: City Attorney or designee PARK ENGINEERING, INC. DocuSigned by::, B : jOJlt Pavt FO5FOB4BC5F345C... Jaemin Park Name: Title: President/CEO/CFO DocuSigned by: B[F01E6363CBCB4E9.. fc nut Stephen Patterson Name: Title: vice President Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 14 of 32 Item 10 Page 51 Packet Page 321 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide the Services detailed in this Exhibit A, entitled "SCOPE OF SERVICES". Notwithstanding any provision herein to the contrary, CONSULTANT's duties and services described in this Scope of Services shall not include preparing or assisting CITY with any portion of CITY's preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with CITY. CITY shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. CONSULTANT's participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Scope of Services. A. Governing Construction General Standards: Standards and references listed below shall be applicable to Services described in Sections I, II, and III below; Water -Gas -Wastewater: The Field Inspection & Construction Project Manager shall perform services in accordance with the most recent City of Palo Alto Utility (CPAU) Standards for Water, Gas, and Wastewater construction; CPAU Safety Rules manual; CPAU plans, permits, and other documents governing the construction of the project. The Field Inspector shall have knowledge of and be familiar with the applicable rules for construction from American Water Works Association (AWWA) as referenced in the City of Palo Alto WGW Standards, the Department of Public Health Federal regulations governing water pipeline installation, applicable Department of Transportation, Title 49, Code of Federal Regulations Part 192 regulations governing natural gas pipeline installations, and pollution prevention practices outlined in Stormwater Pollution Prevention Plan (SWPPP). B. Governing Qualifications: The standards and references listed below shall be applicable to Services described in Sections I, II, and III below. Personnel qualifications and staffing levels for City projects shall be subject to the approval of the City's specific Project Engineer assigned, and as set forth in a Task Order for the specific utility project. It is expected the Consultant provide appropriately experienced personnel corresponding to the utility project inspection request. The City's Project Engineer shall reserve the right to review the resume and interview any new proposed consultant personnel for City projects. References of prior inspection experience shall be available for all Consultant staff and may be requested by City at any time during the Contract. Water -Gas -Wastewater: The Consultant assigned to work on CPAU's Water, Gas, or Wastewater Projects shall have Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 15 of 32 Item 10 Page 52 Packet Page 322 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B a minimum of 10 years' experience working for an Investor -Owned Utility and/or a Municipal Public Utility in the areas of distribution or transmission of water, natural gas or wastewater systems. The Field Inspector must be familiar with underground construction practices as it relates to the installation, rehabilitation, maintenance and inspection of water, gas, and wastewater pipelines. The Field Inspector shall have the ability to make sound decisions and to communicate with others and to assimilate and understand information in a manner consistent with the essential job functions. The Field Inspector shall ensure conformance with the latest City of Palo Alto Utility Standards for Water, Gas, and Wastewater Construction. For natural gas pipeline projects, the Field Inspector must successfully pass all required Operator Qualification knowledge skills exams, administered by the City of Palo Alto. The Consultant's personnel shall maintain the physical condition appropriate to the performance of the assigned duties which may include walking or standing for extended periods of time. Additionally, Consultant Construction Managers must posses a B.S. in Construction Management, Mechanical or Civil Engineering, or another relevant field. I. CONSULTANT TO PROVIDE CONSTRUCTION FIELD INSPECTION: A. Construction Inspection Services Overview Consultant shall provide professional services for field inspection of City's capital improvement projects and/or private development projects. Projects will involve aboveground/underground water, gas, or wastewater utilities. Examples of general duties: oversight of utility infrastructure installation by various methods per design drawings, specifications, and utility standards; construction management; project or schedule coordination; compliance to safety requirements and approved traffic control plans; communication with City staff, contractor, customers, and the public; preparation of record drawings, construction daily reports, and other pertinent documents; etc. The consultant shall furnish personnel with a strong background and experience (with the assigned utility) in water, gas, or wastewater construction practices and standards. Inspection services will be provided on an "as requested" basis. It is expected that the inspector(s) will be responsible for successfully completing a background check (Live Scan) within 5 business days from the request for services. Upon successful completion of the background check, it is expected the inspector(s) will be available on -site in Palo Alto within 48 hours after successful completion of a background check. Inspection services will be required during regular working hours Monday through Friday between 8am-6pm; however, work may be needed night and/or day, on weekends, holidays and/or on a split shift basis. Workweeks may be more than or less than the standard 40 -hour work week. The work schedule will be specified at the beginning of each project and documented in each Task Order (Exhibit A-1). B. General Work Description The Consultant Field Inspector shall inspect new aboveground and underground utility Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 16 of 32 Item 10 Page 53 Packet Page 323 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B installations, alterations, and repairs to ensure compliance with plans, specifications, standards, and codes. The Field Inspector's responsibilities may include, but are not limited to the following: 1. Performs duties described in CPAU Inspector Checklist. 2. Maintains a daily log of construction project activity, incidents, tracks job status. 3. Complete, sign, and submit progress daily reports for approval of the City Project Manager. 4. Ensures that all applicable utility rules, codes and safety regulations are complied with. 5. Ensures all material used and facilities constructed are in accordance with approved submittals, applicable plans, specifications, and CPAU Utility Standards. 6. Notifies contractors and the City's project Engineer/Construction Project Engineer of non- compliance with the contract plans, specifications, and CPAU Utility Standards in a timely manner. 7. Reports and documents safety, compliance infractions, and unsafe work procedures. 8. Prepares inspection documentation for the development of progress payments for the project construction contractor. 9. Assists in preparing punch lists of uncompleted work, non-conformance reports, and deficiency notices. 10. Certifies as to the acceptability of each project upon its completion. 11. Conducts and generates agenda minutes of weekly field meetings. 12. Documents installed work on the as-built/record drawings daily (this may include the use of GPS equipment for data acquisition) and submits documentation as requested. 13. Documents project status with photographs and keeps project folders updated. 14. The consultant shall conduct Site Safety Inspections and work with the construction contractor at the start of projects on an "as -needed" basis. 15. Acts as the liaison between City staff, construction contractor, utility customers, and the public. 16. Coordinates the schedule between the construction contractor and Operations staff if needed. 17. Complete appropriate City required training/certification. 18. Quantify and confirm the good condition of materials provided by City from MSC/warehouse. 19. Enforce applicable permit requirements to the project construction contractor. C. Documentation & Deliverables The Consultant Field Inspector shall maintain a daily journal/diary for each day the inspector performs work on the project. The contents of the diary shall consist of brief, accurate statements of progress and conditions encountered during the prosecution of the work. A construction daily report shall be given daily to the City's assigned Project Engineer and will become a part of the permanent project record. The Field Inspector shall document field as - built drawings/notes daily and transfer the field as -built drawings/notes to a final as -built set daily or weekly. The final as -built drawings must be reviewed by the City Project Engineer weekly. Field inspection photos, incident reports, and sewer lateral inspection reports must be completed and submitted to City as required. Any safety violations and inspection infractions found are to be communicated to the City and Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 17 of 32 Item 10 Page 54 Packet Page 324 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B construction contractor in real-time as they are discovered. Once a month, an electronic effort summary report (web -based or in MS Word or MS Excel format) shall be sent to the City Project Engineer summarizing job highlights related to the consultant's work hours, as well as the equipment inspected, and any infractions found. II. CONSULTANT TO PROVIDE CONSTRUCTION MANAGEMENT: A. Construction Management Overview Consultant shall provide professional services for construction management of the City's capital improvement projects and/or private development projects. Projects will involve aboveground/underground water, gas, or wastewater utilities. Examples of general duties: • construction management of utility infrastructure installation by various methods per design drawings, specifications, and utility standards; • communication with City staff, construction contractor, customers, and the public; Prepare and lead online/field weekly construction meetings; • Track, plan, and coordinate construction or project schedule with City staff and City's Project Manager; preparation and processing of field orders, change orders, request for information, permits, invoices, etc.; • Review, check, and process approval of Contractor submittals; • Review and check Contractor -submitted construction GPS points and sewer lateral video inspections; The consultant shall furnish personnel with a strong background and experience (with the assigned utility) in water, gas, or wastewater construction practices and standards. Construction management services will be provided on an "as requested" basis. It is expected that the consultant construction manager(s) will be responsible for successfully completing a background check (Live Scan) within 5 business days from the request for services. Upon successful completion of the background check, it is expected the construction project manager(s) will be available on -site in Palo Alto within 48 hours of the after successful completion of a background check. Construction management services will be required during regular working hours Monday through Friday between 8am-6pm; however, work may be needed night and/or day, on weekends, holidays and/or on a split shift basis. Workweeks may be more than or less than the standard 40 -hour work week. The work schedule will be specified at the beginning of each City project and documented in each Task Order (Exhibit A-1). B. General Work Description The Construction Project Manager shall manage new underground utility installations, alterations, and repairs to ensure compliance with plans, specifications, standards, and codes. The Construction Project Manager's responsibilities may include, but are not limited to the following duties: Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 18 of 32 Item 10 Page 55 Packet Page 325 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B 1. Ensure project coordination and be the primary point of contact with all parties on the construction project. Coordination will include work coordination among the City Project Manager, assigned project field inspector, City Staff, the public, contractor, other City Divisions/Departments & working Groups, third -party specialty inspectors, etc. 2. Coordinate with City internal divisions (ex. City Public Works for street paving and painting requirements, City Traffic Engineer for review and approval of traffic plans). 3. Manage, coordinate, and complete permits and enforce permitting requirements from other City of Palo Alto Departments and external agencies. Review, quantify, and coordinate release of materials provided by the City from MSC/warehouse for the project. 4. Organize pictures taken per location and activity (tie-ins, pipe installations, meter transfers, etc.) before submitting to City Project Manager. 5. Prepare the agenda and facilitate the preconstruction meeting, weekly progress meetings, and all other construction meetings required during the project. 6. Receive, and review Change Order Requests with City Project Engineer. 7. Receive and evaluate all requests for information. Route RFIs when applicable to design teams and respond or review responses to RFI. Transmit RFI responses to the contractor. 8. Provide assistance in collection of field data (This may include the use of GPS equipment for data acquisition) and submit documentation as requested. 9. Receive and review progress payments and process for payment. 10. Receive, review, and approve Contractor submittals and shop drawings. Transmit reviews to and from design teams and contractor, as needed. 11. Request and process soil compaction testing for backfill. 12. Track project progress and schedule using Microsoft Project. 13. Attend and provide project updates in City meetings. 14. Review and check Contractor -submitted construction GPS points and sewer lateral video inspections. 15. Monitor all applicable utility rules, codes, and safety regulations are complied with and enforce compliance as needed. 16. Read and review daily inspection reports. 17. Direct field inspector as needed. 18. Perform intermittent field observations 19. Ensure all facilities are constructed in accordance with applicable plans, specifications, and CPAU Utility Standards. 20. Receive and respond to public comments and inquiries. 21. Manage complex public complaints and potential claims. 22. Perform or manage field investigations or field measurements of quantities and prepare field orders and contract modifications, as needed. Coordinate revisions with design team. 23. Prepare and review change orders with executive project manager. 24. Monitor performance of the work and prepares and issues notices of defective work and enforces compliance with the construction project documents. Reviews daily inspection reports and photos for non-conformance work. 25. Prepare punch lists and facilitates punch list walks and corrections. 26. Assist with the completion of documents. 27. Document work installed on the as-built/record drawings and submit documentation daily, weekly, monthly or as requested (This may include the use of GPS equipment for data acquisition using City -provided equipment). 28. Manage, coordinate, and complete permits required for the project. Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 19 of 32 Item 10 Page 56 Packet Page 326 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B Tasks specific to Water: 1. Manage and review the preparation ofproject ect procedures and scheduling of drinking water disinfection, testing, and commissioning of new water infrastructure. Tasks specific to Gas: 1. Manage and review the preparation of project procedures and scheduling of pre -CCTV review of sewer mains, gas main and services installation, testing, tie-ins, and post -CCTV of sewer laterals. Tasks specific to Wastewater: 1. Manage and review the preparation of project procedures and scheduling including pre - CCTV review of existing sewer mains to determine the standard installation procedure of proposed sewer pipes. C. Documentation & Deliverables The Construction Project Manager shall maintain project tracking documents, logs, and filing systems at all times. The contents of the diary shall consist of brief, accurate statements of progress and conditions encountered during the prosecution of the work. A construction daily report shall be given daily to the City's assigned City Project Manager and will become a part of the permanent project record. The Construction Project Manager shall keep track of submitted as-builts, photos, and sewer lateral reports submitted by the Inspector. Once a month an electronic effort summary report (web -based or in MS Word or MS Excel format) shall be sent to the City Project Manager summarizing job highlights to the consultant's work hours, the equipment inspected, and any infractions found. III. WATER, GAS, AND WASTEWATER SPECIAL SERVICES EMPLOYEE A. Construction Management Overview and Description The City may require that Consultant provide employees, including specialized contract employees, for projects requiring special experience or knowledge, who would be onboarded by the Consultant's company if not a Consultant employee. Such onboarding by the Consultant shall occur within 10 business days from the date the City agrees to staffing a Consultant contract employee. Consultant's contract employee's positions and tasks are not limited to field inspection, construction management, consultation services, estimation, design, labor work, training, etc. The employee must be assigned to the appointed City project. Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 20 of 32 Item 10 Page 57 Packet Page 327 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B EXHIBIT A -I PROFESSIONAL SERVICES TASK ORDER CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAYBE SAME AS CONTRACT /P.O. NO. ABOVE): 1B. TASK ORDER NO.: 2. CONSULTANT NAME: 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $ 5. BUDGET CODE COST CENTER COST ELEMENT WBS/CIP PHASE 6. CITY PROJECT MANAGER'S NAME & DEPARTMENT: 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: • SERVICES AND DELIVERABLES TO BE PROVIDED • SCHEDULE OF PERFORMANCE • MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) • REIMBURSABLE EXPENSES, if any (with "not to exceed" amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): I hereby authorize the performance of the I hereby acknowledge receipt and acceptance of work described in this Task Order. this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: APPROVED: CITY OF PALO ALTO COMPANY NAME: BY: BY: Name Name Title Title Date Date Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 21 of 32 Item 10 Page 58 Packet Page 328 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B EXHIBIT B SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed ("NTP") from the CITY. ® Optional Schedule of Performance Provision for On -Call or Additional Services Agreements. (This provision only applies if checked and only applies to on -call agreements per Section 1 or agreements with Additional Services per Section 4.) The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on -call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement. Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 22 of 32 Item 10 Page 59 Packet Page 329 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B EXHIBIT C COMPENSATION CITY agrees to compensate CONSULTANT for on -call, as -needed, time -limited project support services performed in accordance with the terms and conditions of this Agreement, and as set forth in a specific Task Order budget schedule. Compensation shall be calculated based on the rate schedule attached as Exhibit C -I up to the not to exceed budget amount for each task set forth in a specific Task Order. CITY's Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed within a specific Task Order, provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Consultant's Task Orders issued under this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in the Task Orders issued to Consultant under this Agreement shall be at no cost to the CITY. The consultant will be compensated for the actual hours worked on construction site as requested by each Project Manager/Engineer, within the Task Order budget estimate prepared by City. The work hours in the electronic effort summary report will be used as a basis for compensation; Any revisions to the Task Order budget will require a written amendment signed by authorized representatives of the Parties. The City makes no guarantee as to the actual amount of services to be requested under any Task Order. REIMBURSABLE EXPENSES CONSULTANT'S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not -to -exceed amount of: $0.00. Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 23 of 32 Item 10 Page 60 Packet Page 330 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B EXHIBIT C-1 SCHEDULE OF RATES CONSULTANT'S schedule of rates is as follows: Park Eneineerine, Inc. (Main Consultant) Scope Source of Services' > ork Hours(d) Employee Hourly ate(e) Extended Rate(t) Total(g) Task I — On -call field Inspector for WGW ® Main ❑ Sub Regular time $66.82 - $81.21 $84.99 - $103.30 $151.81-$184.51 4ightTime $66.82 - $81.21 $84.99 - $103.30 $151.81-$184.51 Overtime $100.23 - $121.82 $127.50 - $154.96 $227.73 - $276.7 Double Time $133.64 - $162.42 $169.98 - $206.60 $303.62 - $369.0 Task II -On -call Construction Project Managers for WGW ® Main ❑ Sub a lar time $87.37 - $113.07 $111.15 - $143.84 $198.52 - $256.91 4ight Time - - - Overtime - - - Double Time - - - Task III —WGW Special Services Employee NA Eegular Time TBD (e) x 1.27 (e + 4ight Time TBD (e) x 1.27 (e + Overtime TBD (e) x 1.27 (e + Double Time TBD (e) x 1.27 (e + TOTAL NOT TO EXCEED $3,750,000 among all Consultants over the five-year term Maximum Annual Price Escalator: Year 2: 3% Year 3: 3% Year 4: 3% Year 5: 3% Notes: (a) The number of hours for the various tasks cannot be estimated at this time for an on -call contract, they will be included in a Task Order budget prepared by City at the time services are requested. (b) Rates for prevailing wage categories are subject to annual escalations in accordance with the bi-annual wage determinations from the California DIR. Rates based on California DIR's wage determinations dated September 2023 (Inspectors). (c) [Omitted intentionally] (d) Nighttime — Work begun after 5 PM or before 6 AM (1.125 x hourly rate). Overtime — Work over 8 hours Monday — Friday or 1St 8 hours on Saturdays (1.5 x hourly rate). Double Time — Work over 8 hours on Saturdays or all hours on Sundays and Holidays (2 x hourly rate). (e) Hourly rates are inclusive of travel time and no travel time will be billed by staff for daily travel to and from the project site. Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 24 of 32 Item 10 Page 61 Packet Page 331 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 iiI�1!Iti Attachment B (1) Rate including Contractor expenses (ex. benefits, vehicle, cell phone, laptops, PPE, tools, etc.) to be added to Employee hourly rates (g) Employee Hourly Rate + Extended Rate Zoon Engineering, Inc. (Sub -Contractor) Scope Source of Services(c) Work Hours' Employee Hourly .ate(e) Extended Rate�t Totahg) Task I — On -call Field Inspector for WGW ❑ Main ❑ SubDouble e ular time $58.91- $80.77 $88.51 -$121.36 $147.42—$202.13 4ight Time - - - Overtime - - - Time - - - Maximum Annual Price Escalator: Year 2: 3% Year 3: 3% Year 4: 3% Year 5: 3% Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 25 of 32 Item 10 Page 62 Packet Page 332 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B EXHIBIT D INSURANCE REQUIREMENTS CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST'S KEY RATING OF A -:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. /_VJ/_\.b7f.`[K�LYYI�CfId111[6L[K@7k12MVA'Jkl[f1akl.T/YY:[f1Y11•fLIMIkJJ§1.7_\kl[NW'AJrf1@11.7auIa011Mr`&S9Ira10IdU7:IaNOI 1 MINIMUM LIMITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH OCCURRENCE AGGREGATE YES WORKER'S COMPENSATION STATUTORY STATUTORY STATUTORY YES EMPLOYER'S LIABILITY STATUTORY YES GENERAL LIABILITY, INCLUDING BODILY INJURY $1,000,000 $1,000,000 PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $1,000,000 $1,000,000 PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY $1,000,000 $1,000,000 LIABILITY DAMAGE COMBINED. BODILY INJURY $1,000,000 $1,000,000 - EACH PERSON $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, - EACH OCCURRENCE $1,000,000 $1,000,000 INCLUDING ALL OWNED, HIRED, PROPERTY DAMAGE $1,000,000 $1,000,000 NON -OWNED BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DAMAGE, COMBINED YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN ALL DAMAGES $1,000,000 APPLICABLE), AND NEGLIGENT PERFORMANCE YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT'S AGREEMENT TO INDEMNIFY CITY. II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING EMAIL: PURCHASINGSUPPORTkCITYOFPALOALTO.ORG III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS: A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 26 of 32 Item 10 Page 63 Packet Page 333 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO SENT TO THE FOLLOWING EMAIL: PURCHASINGSUPPORT(i� CITYOFPALOALTO.ORG Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 27 of 32 Item 10 Page 64 Packet Page 334 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B EXHIBIT E DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS This Exhibit shall apply only to a contract for public works construction, alteration, demolition, repair or maintenance work, CITY will not accept a bid proposal from or enter into this Agreement with CONSULTANT without proof that CONSULTANT and its listed subcontractors are registered with the California Department of Industrial Relations ("DIR") to perform public work, subject to limited exceptions. City requires CONSULTANT and its listed subcontractors, if any, to comply with all applicable requirements of the California Labor Code including but not limited to Labor Code Sections 1720 through 1861, and all applicable related regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as amended from time to time. This Exhibit E applies in addition to the provisions of Section 26 (Prevailing Wages and DIR Registration for Public Works Contracts) of the Agreement. CITY provides notice to CONSULTANT of the requirements of California Labor Code Section 1771.1(a), which reads: "A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded." This Project is subject to compliance monitoring and enforcement by DIR. All contractors must be registered with DIR per Labor Code Section 1725.5 in order to submit a bid. All subcontractors must also be registered with DIR. No contractor or subcontractor may be awarded a contract for public work on a public works project unless registered with DIR. Additional information regarding public works and prevailing wage requirements is available on the DIR web site (see e.g. http://www.dir.ca.gov) as amended from time to time. CITY gives notice to CONSULTANT and its listed subcontractors that CONSULTANT is required to post all job site notices prescribed by law or regulation. CONSULTANT shall furnish certified payroll records directly to the Labor Commissioner (DIR) in accordance with Subchapter 3, Title 8 of the California Code of Regulations Section 16461 (8 CCR Section 16461). CITY requires CONSULTANT and its listed subcontractors to comply with the requirements of Labor Code Section 1776, including but not limited to: Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, CONSULTANT and its listed subcontractors, in connection with the Project. Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 28 of 32 Item 10 Page 65 Packet Page 335 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of CONSULTANT and its listed subcontractors, respectively. At the request of CITY, acting by its Project Manager, CONSULTANT and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the CITY Project Manager within ten (10) days of receipt of CITY's request. ❑ CITY requests CONSULTANT and its listed subcontractors to submit the certified payroll records to CITY's Project Manager at the end of each week during the Project. If the certified payroll records are not provided as required within the 10 -day period, then CONSULTANT and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and CITY shall withhold the sum total of penalties from the progress payment(s) then due and payable to CONSULTANT. Inform CITY's Project Manager of the location of CONSULTANT's and its listed subcontractors' payroll records (street address, city and county) at the commencement of the Project, and also provide notice to CITY's Project Manager within five (5) business days of any change of location of those payroll records. Eight (8) hours labor constitutes a legal day's work. CONSULTANT shall forfeit as a penalty to CITY, $25.00 for each worker employed in the execution of the Agreement by CONSULTANT or any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day or forty (40) hours in any one calendar week in violation of the provisions of the Labor Code, and in particular, Sections 1810 through 1815 thereof, except that work performed by employees of CONSULTANT or any subcontractor in excess of eight (8) hours per day, or forty (40) hours during any one week, shall be permitted upon compensation for all hours worked in excess of eight (8) hours per day, or forty (40) hours per week, at not less than one and one-half (1&1/2) times the basic rate of pay, as provided in Section 1815. CONSULTANT shall secure the payment of workers' compensation to its employees as provided in Labor Code Sections 1860 and 3700 (Labor Code 1861). CONSULTANT shall sign and file with the CITY a statutorily prescribed statement acknowledging its obligation to secure the payment of workers' compensation to its employees before beginning work (Labor Code 1861). CONSULTANT shall post job site notices per regulation (Labor Code 1771.4(a)(2)). CONSULTANT shall comply with the statutory requirements regarding employment of apprentices including without limitation Labor Code Section 1777.5. The statutory provisions will be enforced for penalties for failure to pay prevailing wages and for failure to comply with wage and hour laws. Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 29 of 32 Item 10 Page 66 Packet Page 336 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B EXHIBIT F Claims for Public Contract Code Section 9204 Public Works Projects The provisions of this Exhibit are provided in compliance with Public Contract Code Section 9204; they provide the exclusive procedures for any claims pursuant to Public Contract Code Section 9204 related to the Services performed under this Agreement. 1. Claim Definition. "Claim" means a separate demand by the Contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following: (A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by the City. (B) Payment by the City of money or damages arising from the Services performed by, or on behalf of, the Contractor pursuant to the Agreement and payment for which is not otherwise expressly provided or to which the Contractor is not otherwise entitled. (C) Payment of an amount that is disputed by the City. 2. Claim Process. (A) Timing. Any Claim must be submitted to City in compliance with the requirements of this Exhibit no later than fourteen (14) days following the event or occurrence giving rise to the Claim. This time requirement is mandatory; failure to submit a Claim within fourteen (14) days will result in its being deemed waived. (B) Submission. The Claim must be submitted to City in writing, clearly identified as a "Claim" submitted pursuant to this Exhibit, and must include reasonable documentation substantiating the Claim. The Claim must clearly identify and describe the dispute, including relevant references to applicable portions of the Agreement, and a chronology of relevant events. Any Claim for additional payment must include a complete, itemized breakdown of all labor, materials, taxes, insurance, and subcontract, or other costs. Substantiating documentation such as payroll records, receipts, invoices, or the like, must be submitted in support of each claimed cost. Any Claim for an extension of time or delay costs must be substantiated with schedule analysis and narrative depicting and explaining claimed time impacts. (C) Review. Upon receipt of a Claim in compliance with this Exhibit, the City shall conduct a reasonable review of the Claim and, within a period not to exceed 45 days from receipt, shall provide the Contractor a written statement identifying what portion of the Claim is disputed and what portion is undisputed. Upon receipt of a Claim, the City and Contractor may, by mutual agreement, extend the time period provided in this paragraph 2. (D) If City Council Approval Required. If the City needs approval from the City Council to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the Claim, and the City Council does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a Claim sent by registered mail or certified mail, return receipt requested, the City shall have up to three days following the next duly publicly noticed meeting of the City Council after the 45 -day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 30 of 32 Item 10 Page 67 Packet Page 337 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B portion. (E) Payment. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement. If the City fails to issue a written statement, paragraph 3, below, shall apply. 3. Disputed Claims (A) Meet and Confer. If the Contractor disputes the City's written response, or if the City fails to respond to a Claim submitted pursuant to this Exhibit within the time prescribed, the Contractor may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the City shall schedule a meet and confer conference within 30 days for settlement of the dispute. Within 10 business days following the conclusion of the meet and confer conference, if the Claim or any portion of the Claim remains in dispute, the City shall provide the Contractor a written statement identifying the portion of the Claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement. (B) Mediation. Any remaining disputed portion of the Claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The City and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the Claim has been identified in writing by the Contractor. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate the disputed portion of the Claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the Claim remaining in dispute shall be subject to any other remedies authorized by the Agreement and laws. (i) For purposes of this paragraph 3.B, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section. (ii) Unless otherwise agreed to by the City and the Contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation, if any, under Public Contract Code Section 20104.4 to mediate after litigation has been commenced. 4. City's Failure to Respond. Failure by the City to respond to a Claim from the Contractor within the time periods described in this Exhibit or to otherwise meet the time requirements of this Exhibit shall result in the Claim being deemed rejected in its entirety. A Claim that is denied by reason of the City's failure to have responded to a Claim, or its failure to otherwise meet the time requirements of this Exhibit, shall not constitute an adverse finding with regard to the merits of the Claim or the responsibility or qualifications of the Contractor. 5. Interest. Amounts not paid in a timely manner as required by this section shall bear Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 31 of 32 Item 10 Page 68 Packet Page 338 of 582 Docusign Envelope ID: ADF92321-3D73-4EA2-87EA-85B1CD4A3C34 ITEM 10 Attachment B interest at seven (7) percent per annum. 6. Approved Subcontractor Claims. If an approved subcontractor or a lower tier subcontractor lacks legal standing to assert a Claim against the City because privity of contract does not exist, the Contractor may present to the City a Claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on his or her own behalf or on behalf of a lower tier subcontractor, that the Contractor present a Claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the Claim be presented to the City shall furnish reasonable documentation to support the Claim. Within 45 days of receipt of this written request, the Contractor shall notify the subcontractor in writing as to whether the Contractor presented the claim to the City and, if the Contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so. 7. Waiver of Provisions. A waiver of the rights granted by Public Contract Code Section 9204 is void and contrary to public policy, provided, however, that (1) upon receipt of a Claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) the City may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of Public Contract Code Section 9204, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section. Exhibit: Claims for PCC Section 9204 Public Works Projects Rev. Dec. 15,2020 Page 32 of 32 Item 10 Page 69 Packet Page 339 of 582 ITEM 11 City Council Staff Report From: City Clerk CITY O F Report Type: CONSENT CALENDAR PALO Lead Department: City Clerk ALTO Meeting Date: February 10, 2025 Report #:2410-3619 TITLE Adoption of a Resolution Amending the Conflict of Interest Code for Designated City Officers and Employees as Required by the Political Reform Act and Regulations of the Fair Political Practices Commission and Repealing Resolution Number 9937. CEQA Status -- Not a Project RECOMMENDATION It is recommended that Council adopt a resolution amending the City's Conflict of Interest Code of Non -Elected Officials and Designated employees, repealing Resolution 9937. BACKGROUND California law requires public officials, both elected and non -elected, to disclose their financial interests to the public. This includes elected officials like Councilmembers and non -elected officials like the City Manager and City Treasurer, as outlined by Government Code Section 87200. Other non -elected officials, such as management staff and consultants, are designated by the agency's Conflict of Interest Code and must disclose if they have financial decision - making authority. These disclosures, filed through Form 700, alert the public to any personal financial interests that may be impacted by the official's duties. Form 700 is filed when taking office, annually, and upon leaving office. On January 11, 2021, City Council adopted Resolution 9937 amending the Conflict of Interest Code designated for City Officers and Employees as required by the Political Reform Act and Regulations of the Fair Political Practices Commission and repealed Resolution No. 9800. ANALYSIS The Political Reform Act requires the City review its Conflict of Interest Code every two years. Chapter 2.09 of the Palo Alto Municipal Code and the Political Reform Act require the City to adopt a list of designated positions and disclosure responsibilities for each position subject to the Conflict of Interest Code for Designated Employees. Disclosure statements from designated positions are due annually each April and within 30 days of a person either assuming or leaving Item 11 Page 1 Packet Page 340 of 582 ITEM 11 a designated position. The attached Resolution amends the City's Conflict of Interest Code to update the list of designated positions to reflect administrative changes, including title changes and positions added or deleted from the Table of Organization. The attached Resolution (Attachment A) includes the Disclosure Categories and Definitions in Appendix B and resources for Statement of Economic Interests filers in Appendix C. The last review and update of the Conflict of Interest Code occurred in January 2021. Accordingly, the City Council is required to approve an update to the code. The following is a summary of the proposed updates, based upon review by City staff: Addition of positions and/or divisions that will be involved in financial decision making: HUMAN RESOURCES • Human Resources Representative • Manager, Recruitment Division INFORMATION TECHNOLOGY • Assistant Director, Information Technology PLANNING & DEVELOPMENT SERVICES • Supervisor of Code Enforcement • Senior Building Inspector PUBLIC WORKS Administration Division • Assistant Director of Climate Action and Sustainability • Management Analyst Office of Sustainability (additional division) • Sustainability Programs Administrator OFFICE OF TRANSPORTATION • Coordinator Transportation Systems Management IrrI•rlI - Administration • Principal Utilities Program Manager • Utilities Safety Officer • Utilities Systems Analyst Item 11 Page 2 Packet Page 341 of 582 ITEM 11 Engineering Division to Electric Engineering & Operating Division (revision) • Manager Electric Operations Water -Gas -Wastewater Engineering & Operations Division (additional division) • Assistant Director Utilities W -G -W • Manager Utilities Operations W -G -W • Engineering Manager W -G -W • Senior Project Engineer • Utilities Supervisor Palo Alto Fiber (additional division) • Assistant Director Fiber • Manager, Telecommunications • Manager, Information Technology Revision of Titles: FIRE DEPARTMENT • Deputy Chief/Fire Marshal to Fire Marshal LIBRARY DEPARTMENT • Assistant Director, Libraries Services to Division Head, Operations UTILITIES DEPARTMENT Resource Management Division • Asst Dir Ut/Res Mgmt to Assistant Director, Resource Management Electric Engineering & Operating Division • Assistant Director Utilities Engineering to Assistant Director, Utilities, Electric, and Fiber • Senior Engineer — U (Senior Project Engineer) to Utilities Supervisor Deletion of positions and/or divisions: CITY ATTORNEY • Management Specialist (Attorney) Item 11 Page 3 Packet Page 342 of 582 ITEM 11 IrriurlIr:t Electric Engineering & Operating Division • Engineering Manager Water Gas Wastewater • Manager, Utilities Telecommunications • Supervising Electric Project Engineer Operations Division (deletion of division) There are no updates to the disclosure categories. Appendix C Resources was updated with new electronic filing system (eFile) information as well as links to the FPPC reference pamphlet and Form 700 Disclosure FAQs. FISCAL/RESOURCE IMPACT There are no significant Fiscal/Resource impacts related to this item. The law mandates that every local government agency review its Conflict of Interest Code every two years to determine if any amendments are needed. The cost related to processing the Statements of Economic Interests are part of the City Clerk Department budget. STAKEHOLDER ENGAGEMENT Staff collaborated with Human Resources Department on the proposed changes and the attached update to the Conflict of Interest Code was circulated to department heads for confirmation of changes. Updates and edits are reflected in the attached draft resolution. ENVIRONMENTAL REVIEW This action is not a project under section 15378 (b)(25) of the California Environmental Quality Act Guidelines (administrative activities that will not result in direct or indirect physical change in the environment). ATTACHMENTS Attachment A: Resolution approving an update of Conflict of Interest Code and Appendix "A" Designating Positions Red -Lined Attachment B: Local Agency Biennial Notice APPROVED BY: Mahealani Ah Yun, City Clerk Item 11 Page 4 Packet Page 343 of 582 ITEM 11 Attachment A Resolution No. 997 Resolution of the Council of the City of Palo Alto Amending the Conflict of Interest Code for Designated City Officers and Employees as Required by the Political Reform Act and Regulations of the Fair Political Practices Commission and Repealing Resolution No. 9937 9300 RECITALS A. The Political Reform Act requires certain City officials, specified in section 87200 of the California Government Code, to file economic disclosure forms ("Form 700") and abstain from making or participating in making governmental decisions which have a reasonably foreseeable material effect on an economic interest. B. The Political Reform Act also requires the City to adopt a local conflict of interest code that enumerates specific City positions other than those specified in Government Code section 87200 which involve making or participating in making decisions which have a reasonably foreseeable material effect on an economic interest, and to designate for each position the specific types of investments, business positions, interests in real property and sources of income which are reportable based on the scope of the decision -making authority of the position. C. Consistent with Chapter 2.09 of the Palo Alto Municipal Code and the biennial schedule established by the Fair Political Practices Commission for amending local conflict of interest codes, the City reviews and amends its local conflict of interest code by resolution every two years. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. Resolution No. 993700 is hereby repealed. SECTION 2. The Conflict of Interest Code for the City of Palo Alto is hereby amended to read as follows: CONFLICT OF INTEREST CODE FOR THE CITY OF PALO ALTO The Political Reform Act, Government Code section 81000, et seq., requires state and local government agencies to adopt and promulgate conflict of interest codes. The Fair Political Practices Commission (FPPC) has adopted a regulation (2 Cal. Code of Regs. section 18730), which contains the terms of a standard conflict of interest code. After public notice and hearing the regulation may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of two2 California Code of 180904 016/Ethics Item 11 Page 5 Packet Page 344 of 582 0160041_20210114_ay16 ITEM 11 Attachment A Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission are hereby incorporated by reference. FPPC Regulation 18730 and Appendices A, B, and C, attached to this resolution and a part of it, designating officials and employees and establishing disclosure categories, shall constitute the conflict of interest code of the City of Palo Alto. Designated employees shall file statements of economic interests with the City Clerk who will make the statements available for public inspection and reproduction. (Gov. Code, § 81008.) Statements for all designated employees will be retained by the City Clerk. SECTION 3. The Conflict of Interest Code for the City of Palo Alto will be effective thirty (30) days from the date the City Council approves this resolution. SECTION 4. The City Council finds that there is no possibility that this resolution will have a significant effect on the environment and upon that basis determines that this resolution is exempt from the California Environmental Quality Act. INTRODUCED AND PASSED: Jury 11, 2021 I�\�/� ! ! �T�!,�LrillS�l�ITil[i�I1C�i�r!�Il�l�tiriT\I�ir�ttl�\I/�w NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: City Attorney or designee City Manager 180904 016/Ethics Item 11 Page 6 Packet Page 345 of 582 0160041_20210114_ay16 ITEM 11 Attachment A APPENDIX A DESIGNATED POSITIONS Title ADMINISTRATIVE SERVICES DEPARTMENT Finance Division Assigned Disclosure Category Accountant..................................................................................................................................... 4 Assistant Director, Administrative Services................................................................................... 1 Chief Financial Officer / Director, Administrative Services ............................................ G.C. 87200 Chief Procurement Officer............................................................................................................. 3 Contracts Administrator................................................................................................................. 3 Manager, Finance........................................................................................................................... 1 Manager Revenue Collections....................................................................................................... 1 Manager, Treasury, Debt and Investment..................................................................................... 1 Principal Business Analyst.............................................................................................................. 4 Principal Management Analyst................................................................................................................4 SeniorAccountant.......................................................................................................................... 4 Senior Business Analyst.................................................................................................................. 4 SeniorBuyer................................................................................................................................... 4 Senior Management Analyst.......................................................................................................... 4 Warehouse Supervisor................................................................................................................... 5 Real Estate Division Manager, Real Property................................................................................................................. 4 Senior Management Analyst.......................................................................................................... 4 Office of Management and Bud&et Director, Office of Management and Budget................................................................................ 1 ManagementAnalyst..................................................................................................................... 4 Manager, Budget........................................................................................................................... 4 Principal Management Analyst................................................................................................................4 Senior Management Analyst.......................................................................................................... 4 Senior Management Analyst (Senior Principal Analyst)................................................................ 4 APPOINTED/ELECTED OFFICIALS Architectural Review Board........................................................................................................... 1 CityCouncil..................................................................................................................... G.C. 87200 Emergency Standby Council Member............................................................................................ 1 HistoricResources Board............................................................................................................... 1 Human Relations Commission....................................................................................................... 1 Parks and Recreation Commission................................................................................................. 1 Planning and Transportation Commission..................................................................... G.C. 87200 PublicArt Commission................................................................................................................... 1 UtilitiesAdvisory Commission........................................................................................................ 1 Appen84 ' K:Wtg 1 of 8 Packet Page 346 of 582 Title CITY ATTORNEY ITEM 11 Attachment A Assigned Disclosure Category AssistantCity Attorney................................................................................................................... 1 Chief Assistant City Attorney......................................................................................................... 1 CityAttorney.................................................................................................................. G.C. 87200 ClaimsInvestigator......................................................................................................................... 3 DeputyCity Attorney..................................................................................................................... 1 LegalFellow.................................................................................................................................... 1 Mzrnogcmcnt Spcciz list(Attorney)................................................................................................ 1 Secretaryto City Attorney............................................................................................................. 4 SeniorLegal Secretary.................................................................................................................... 1 Senior Management Analyst.......................................................................................................... 1 CITY AUDITOR CityAuditor.................................................................................................................................... 1 CITY CLERK AssistantCity Clerk......................................................................................................................... 3 CityClerk........................................................................................................................................ 1 DeputyCity Clerk............................................................................................................................ 3 CITY MANAGER AssistantCity Manager.................................................................................................................. 1 Assistant to the City Manager........................................................................................................ 1 Chief Communications 0fficer....................................................................................................... 1 CityManager.................................................................................................................. G.C. 87200 DeputyCity Manager..................................................................................................................... 1 Executive Assistant to the City Manager....................................................................................... 3 Manager, Communications............................................................................................................ 4 COMMUNITY SERVICES AdministrativeAssistant................................................................................................................ 3 Assistant Director Community Services......................................................................................... 1 DirectorCommunity Services........................................................................................................ 1 ManagementAnalyst..................................................................................................................... 3 SeniorManagement Analyst.......................................................................................................... 3 Arts & Sciences Division Manager, Community Services Sr. Program (Senior Community Services Manager) ................... 5 Appendix A: Page 2 of 8 Item 11 Page 8 Packet Page 347 of 582 Title ITEM 11 Attachment A Assigned Disclosure Category Producer Arts/Science Programs (Arts Producer)......................................................................... 5 Recreation Division Coor Rec Prog (Coordinator, Recreation Programs)...................................................................... 5 Manager Community Services....................................................................................................... 5 Manager Community Services Senior Program............................................................................. 5 Superintendent Community Services............................................................................................ 5 Open Space, Parks and Golf Division Division Manager Open Space Parks & Golf.................................................................................. 6 Manager Community Services....................................................................................................... 5 Superintendent Community Services......................................................................................................5 IiI:111:IIIJil40lt11 BattalionChief................................................................................................................................ 6 DcputyChicfiFire Marshal............................................................................................................. 1 DeputyFire Chief........................................................................................................................... 1 Emergency Medical Services Data Specialist................................................................................. 7 Emergency Medical Services (EMS) Director................................................................................. 1 FireCaptain.................................................................................................................................... 6 FireChief........................................................................................................................................ 1 Geographic Information System Specialist.................................................................................... 9 HUMAN RESOURCES Assistant Director, Human Resources............................................................................................ 1 Director, Human Resources........................................................................................................... 1 Human Resources Representative................................................................................................. 3 Manager, Employee Benefits......................................................................................................... 3 Manager, Employee Relations....................................................................................................... 3 Manager, Recruitment Division................................................................................................................ 6 Senior Human Resources Administrator........................................................................................ 3 Senior Management Analyst.......................................................................................................... 3 INFORMATION TECHNOLOGY DEPARTMENT Director, Information Technology/Chief Information Officer....................................................... 1 Assistant Director, Information Technology...........................................................................................1 Manager Information Technology Security................................................................................... 2 Manager Information Technology................................................................................................. 2 SeniorManagement Analyst.......................................................................................................... 3 SeniorTechnologist........................................................................................................................ 9 Technologist................................................................................................................................... 9 Appendix A: Page 3 of 8 Item 11 Page 9 Packet Page 348 of 582 Title LIBRARY DEPARTMENT ITEM 11 Attachment A Assigned Disclosure Category Division Head, 0perationsAssi Cant Direct L ib.arics Service 3 Director, Libraries........................................................................................................................... 1 Division Head Library Services (Information Technology & Collections) ....................................... 3 ManagementAnalyst..................................................................................................................... 5 Manager Library Services............................................................................................................... 5 OFFICE OF EMERGENCY SERVICES Director of Emergency Services (OES)........................................................................................... 1 Office of Emergency Services (OES) Coordinator.......................................................................... 1 PLANNING & DEVELOPMENT SERVICES AdministrativeAssistant...........................................................................................................................4 Assistant Chief Building Official...............................................................................................................4 Assistant Director, Planning and Community Environment.......................................................... 1 AssociatePlanner........................................................................................................................... 4 BuildingInspector Specialist.....................................................................................................................4 ChiefBuilding Official.................................................................................................................................1 Chief Planning Official.................................................................................................................... 1 Development Project Coordinator II/III (Project Coordinator)...........................................................4 Development Services Director...............................................................................................................1 Division Manager, Planning........................................................................................................... 1 Code Enforcement Officer............................................................................................................. 4 Code Enforcement Officer Lead..................................................................................................... 4 Supervisor of Code Enforcement..............................................................................................................4 Director, Planning and Community Environment.......................................................................... 1 ManagementAnalyst..................................................................................................................... 4 Manager Development Center.................................................................................................................1 ManagerPlanning........................................................................................................................... 4 Planner........................................................................................................................................... 4 PrincipalPlanner............................................................................................................................ 4 SeniorBusiness Analyst.............................................................................................................................4 SeniorManagement Analyst.......................................................................................................... 4 SeniorPlanner................................................................................................................................ 4 SeniorBuilding Insaector...........................................................................................................................4 OFFICE OF TRANSPORTATION AdministrativeAssistant...........................................................................................................................4 Appendix A: Page 4 of 8 Item 11 Page 10 Packet Page 349 of 582 Title ITEM 11 Attachment A Assigned Disclosure Category AssociatePlanner.......................................................................................................................................4 Chief Transportation Official.....................................................................................................................1 Coordinator Transportation Systems Management.............................................................................4 ManagementAnalyst.................................................................................................................................4 Manager, Transportation Planning..........................................................................................................4 SeniorEngineer..........................................................................................................................................4 SeniorPlanner............................................................................................................................................4 TrafficEngineering Lead............................................................................................................................4 POLICE DEPARTMENT AssistantPolice Chief..................................................................................................................... 1 Communications Manager............................................................................................................. 1 PoliceCaptain -Adv........................................................................................................................ 1 PoliceChief -Adv............................................................................................................................... 1 PoliceLieutenant -Adv................................................................................................................... 1 Public Safety Program Manager.................................................................................................... 3 Senior Management Analyst.......................................................................................................... 3 Technical Services Division Deputy Director Technical Services Division.................................................................................. 9 Public Safety Communications Manager....................................................................................... 3 Public Safety Program Manager.................................................................................................... 3 PUBLIC WORKS DEPARTMENT Administration Division Assistant Director of Climate Action and Sustainability................................................................ 1 Director, Public Works/City Engineer............................................................................................ 1 ManagementAnalyst..................................................................................................................... 3 Senior Management Analyst.......................................................................................................... 3 Airport Division ManagementAnalyst...........................................................................................................................3 ManagerAirport....................................................................................................................................1 Manager, Maintenance Operations...................................................................................................5 Eneineerine Services Division AssistantDirector Public Works..................................................................................................... 1 ManagementAnalyst..................................................................................................................... 3 ProjectManager............................................................................................................................. 4 SeniorEngineer.............................................................................................................................. 4 Appendix A: Page 5 of 8 Item 11 Page 11 Packet Page 350 of 582 ITEM 11 Attachment A Title Assigned Disclosure Category Supervisor Inspection & Surveying................................................................................................ 4 Public Services Division Assistant Director Public Works..................................................................................................... 1 AssistantFleet Manager................................................................................................................ 5 Coordinator Public Works Projects................................................................................................ 3 FleetManager................................................................................................................................ 5 ManagementAnalyst..................................................................................................................... 3 ManagerFacilities.......................................................................................................................... 5 Manager Maintenance Operations................................................................................................ 5 ManagerUrban Forester............................................................................................................... 5 ProjectManager............................................................................................................................. 5 Project Manager (Urban Forester)................................................................................................. 5 Environmental Services Division Assistant Director Public Works..................................................................................................... 1 Assistant Manager Water Quality Control Plant........................................................................... 3 Coordinator Public Works Projects................................................................................................ 5 ManagementAnalyst..................................................................................................................... 3 Manager Environmental Control Program.................................................................................... 4 Manager Laboratory Services........................................................................................................ 5 ManagerSolid Waste..................................................................................................................... 4 Manager Water Quality Control Plant........................................................................................... 4 Manager Watershed Protection.................................................................................................... 4 ProjectManager............................................................................................................................. 4 SeniorEngineer.............................................................................................................................. 4 Office of Sustainability Sustainabilitv Proerams Administrator.......................................................................................... 3 UTILITIES DEPARTMENT Administration Directorof Utilities.....................................................................................................................................1 ManagerCommunications............................................................................................................. 5 PrincipalBusiness Analyst - U........................................................................................................ 4 Principal Utilities Program Manager....................................................................................................... 4 SeniorBusiness Analyst - U............................................................................................................ 4 SeniorResource Planner................................................................................................................ 3 UtilitiesChief Operating Officer..................................................................................................... 1 UtilitiesCompliance Manager........................................................................................................ 5 UtilitiesSafety Officer..................................................................................................................... 4 Utilities Strategic Business Manager.............................................................................................. 1 Appendix A: Page 6 of 8 Item 11 Page 12 Packet Page 351 of 582 ITEM 11 Attachment A Title Assigned Disclosure Category UtilitiesSytems Analyst..............................................................................................................................4 Customer Support Services Division Assistant Director Utilities Customer Support Services................................................................. 1 Manager Customer Service............................................................................................................ 1 Manager, Utilities Credit, and& Collections.................................................................................. 1 Resource Management Division Asst Dir Ut/Rca Mgmt (Assistant Director, Resource Management}............................................1 Manager Utilities Program Services............................................................................................... 4 Senior Resource Planner................................................................................................................ 3 Electric Eneineerine & ODeratine Division Assistant Director, Utilities, Electric, and Fiber Utilities Enginccring 1 Engineering Manager - Electric...................................................................................................... 4 Manager Electric Ooerations......................................................................................................... 4 Senior Electrical Engineer.............................................................................................................. 4 Utilities SupervisorScnior Engineer — U (S nier Prof ct Enginccr) 4 Supervising Electric-Prejest €ngiRee (Electric Superviser Project Engineer) ............................... 4 Water -Gas -Wastewater Ens?ineerine & Operations Division Assistant Director Utilities W-G-W................................................................................................ 1 Manager Utilities Operations W-G-W............................................................................................ 4 EngineeringManager W-G-W........................................................................................................ 4 SeniorProject Engineer.................................................................................................................. 4 UtilitiesSupervisor......................................................................................................................... 4 Palo Alto Fiber AssistantDirector Fiber.................................................................................................................. 3 Manager, Telecommunications..................................................................................................... 3 Manager, Information Technology................................................................................................ 3 OTHER REPORTING REQUIREMENTS Appendix A: Page 7 of 8 Item 11 Page 13 Packet Page 352 of 582 ITEM 11 Attachment A Title Assigned Disclosure Category Newly created positions between conflict code amendments ........................... 1-9, As applicable, the City Clerk to work with Department to complete FPPC Form 804 at the time a new position is created. Consultants (Defined in FPPC Regulation 18701(a)(2)) .................................... 1-9, As applicable', the City Clerk to work with Department to complete FPPC form 805 at the time a consultant is hired. Members of Task Forces, Special Committees and Similar Advisory Bodies Created by the City Council......................................................................................................................... 1, As applicable2 1 Pursuant to Palo Alto Municipal Code section 2.09.060, the City Manager or his or her designee may determine in writing that a particular consultant, although a designated position, is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements. Any such written determination shall include a description of the consultant's duties and, based upon the description, a statement of the extent of disclosure requirements, if any. The City Manager or his or her designee may also determine whether a particular contract consultant constitutes a "consultant" as the term is defined in the Political Reform Act and regulations promulgated there under or whether the contract consultant is a registered professional engineer or licensed land surveyor exempted from the conflict of interest provisions under Government Code Section 87100.1. The City Manager's determination is a public record and shall be retained for public inspection in the same manner and location as the Conflict of Interest Code. 2 The City Attorney and City Clerk shall coordinate to determine whether a newly created body provides that committees, boards, or commissions possesses decision making authority pursuant to Fair Political Practices Regulation 18701 and make a recommendation to the Council on whether the body should be subject to the disclosure requirements. Factors to be considered include but are not limited to whether the body will perform a role that compels or prevents a governmental decision, or make substantive recommendations that may be regularly approved without significant modification by another public official or governmental agency over an extended period of time. Appendix A: Page 8 of 8 Item 11 Page 14 Packet Page 353 of 582 ITEM 11 Attachment A APPENDIX B DISCLOSURE CATEGORIES AND DEFINITIONS CATEGORIES 1. FULL DISCLOSURE What to report? All investments, positions in business entities, sources of income (including gifts, loans, and travel payments), and interests in real property. What Form 700 schedules? All Schedules (A through E) 2. ALL INCOME What to report? All investments, positions in business entities, and sources of income (including gifts, loans, and travel payments). What Form 700 schedules? A, C, D, E 3. CITY -RELATED INCOME What to report? All investments, positions in business entities, and sources of income (including gifts, loans, and travel payments) if the source provides goods or services of the type utilized by or subject to the review or approval of the City. What Form 700 schedules? A, C, D, E 4. CITY -RELATED INCOME, REAL PROPERTY What to report? All investments, positions in business entities, and sources of income (including gifts, loans, and travel payments) if the source provides goods or services, of the type utilized by or subject to the review or approval of the City and all interests in real property. What Form 700 schedules? All Schedules (A through E) 5. DEPARTMENT -RELATED INCOME What to report? All investments, positions, in business entities, and sources of income (including gifts, loans, and travel payments) if the source provides goods or services of the type utilized by or subject to the review or approval of the department in which that person is employed. What Form 700 schedules? A, C, D, E 6. DEPARTMENT -RELATED INCOME, REAL PROPERTY What to report? All investments, positions in business entities, and sources of income (including gifts, loans, and travel payments) if the source provides, goods or services of the type utilized by or subject to the review or approval of the department in which that person is employed and all interests in real property. What Form 700 schedules? All Schedules (A through E) Appendix B: Page 1 of 2 Item 11 Page 15 Packet Page 354 of 582 ITEM 11 Attachment A 7. DIVISION- RELATED INCOME What to report? All investments, positions in business entities, and sources of income (including gifts, loans, and travel payments), if the source provides goods or services of the type utilized by or subject to the review or approval of the division in which that person is employed. What Form 700 schedules? A, C, D, E 8. DIVISION -RELATED INCOME, REAL PROPERTY What to report? All investments, -positions in business entities, and sources of income (including gifts, loans, and travel payments), if the source provides goods or services of the type utilized by or subject to the review or approval of the division in which that person is employed and all interests in real property. What Form 700 schedules? All Schedules (A through E) 9. CITY -RELATED COMPUTER HARDWARE & SOFTWARE What to report? All investments, positions in business entities, and sources of income (including gifts, loans, and travel payments), if the source provides goods or services relating to computer hardware or software of the type utilized by the City. What Form 700 schedules? A, C, D, E DEFINITIONS (summary from California Government Code as of 8/21/2018) For the purposes of these disclosure categories, the definitions and regulations contained in the Political Reform Act apply, including but not limited to: "Business entity" means any organization or enterprise operated for profit, including but not limited to a proprietorship, partnership, firm, business trust, joint venture, syndicate, corporation or association (Gov. Code 82005). A position in a business entity includes a position as "a director, officer, partner, trustee, employee, or holds any position of management" (Gov. Code 87103(d)). "Income" means a payment received, including but not limited to any salary or wage received by the filer (Gov. Code 82030). However, income does not need to be disclosed if the source is a state, local, or federal government agency (Gov. Code 82030(b)(2)). "Interests in real property" means leasehold or ownership interests or options worth $2,000 or more within two miles of the jurisdictional boundaries of the City of Palo Alto (Gov. Code 82033). However, a real estate interest does not need to be disclosed if it is used solely as your primary residence (Gov. Code 87206(f)). "Investment" means any financial interest in or security issued by a business entity owned directly, indirectly, or beneficially by filer, or his or her immediate family. An asset shall not be deemed an investment unless its fair market value equals or exceeds two thousand dollars ($2,000) (Gov. Code 82034). Appendix B: Page 2 of 2 Item 11 Page 16 Packet Page 355 of 582 ITEM 11 Attachment A APPENDIX C RESOURCES FAIR POLITICAL PRACTICES COMMISSION Statements of Economic Interests - Form 700 webpage http://www.fppc.ca.gov/Form700.htm I Includes the latest: Reference Pamphlet -3 (Explains Reporting Requirements) Form 700 Disclosure FAQs4 Informal Advice http://www.fppc.ca.gov/advice/get-advice.htmI • advice@fppc.ca.gov or; • 866-275-3772 1 Monday through Thursday from 9:00 a.m. to 11:30 a.m. Formal Advice http://www.fppc.ca.gov/advice/formal-advice.htmI OFFICE OF THE CITY CLERK • File Form 700 electronically at http://nctfilc.com/Filcr/ https://efile.cityofpaloalto.org/ • Questions about accessing the NetFiie eFile electronic filing system? Contact the City Clerk's Office: (650) 329-2571 • View previously filed Form 700's at http://public.nctfile.com/pub/?aid—CPA https://efile.cityofpaloaIto.org/public/search/sei?query=&start date=2024-01- 23&end date=2025-01- 23&filing types=fppc700&filing subtypes=assuming%20office,leaving%20office,annual, candidate&current page=l&page size=10 3 FPPC 2024/2025 Form 700 Statement of Economic Interest Reference Pamphlet https://www.fppc.ca.gov/content/dam/fppc/NS-Documents/TAD/Form%20700/2024-25/Ref Pamphlet2024.pdf 4 FPPC Form 700 Disclosure FAQs https://www.fppc.ca.gov/content/dam/fppc/NS- Documents/TAD/Form%20700/2024-25/Form700FAQs2024.pdf AppeA 1 of 1 Packet Page 356 of 582 ITEM 11 2024 Local Agency Biennial Notice Attachment B Name of Agency: City of Palo Alto Mailing Address: 250 Hamilton Avenue Palo Alto, CA 94301 Contact Person: Mahealani Ah Yun, City Clerk Phone No. 6503282571 Mahealani.AhYun@CityofPaloAlto.org Email: Alternate Email: Accurate disclosure is essential to monitor whether officials have conflicts of interest and to help ensure public trust in government. The biennial review examines current programs to ensure that the agency's code includes disclosure by those agency officials who make or participate in making governmental decisions. This agency has reviewed its conflict of interest code and has determined that (check one BOX): ❑ An amendment is required. The following amendments are necessary: (Check all that apply.) 0 Include new positions El Revise disclosure categories O Revise the titles of existing positions 0 Delete titles of positions that have been abolished and/or positions that no longer make or participate in making governmental decisions ❑ Other (describe) ❑ The code is currently under review by the code reviewing body. ❑ No amendment is required. (If your code is over five years old, amendments may be necessary.) Verification (to be completed if no amendment is required) This agency's code accurately designates all positions that make or participate in the making of governmental decisions. The disclosure assigned to those positions accurately requires that all investments, business positions, interests in real property, and sources of income that may foreseeably be affected materially by the decisions made by those holding designated positions are reported. The code includes all other provisions required by Government Code Section 87302. Signature of Chief Executive Officer Date All agencies must complete and return this notice regardless of how recently your code was approved or amended. Please return this notice no later than October 1, 2024, or by the date specified by your agency, if earlier, to: (PLACE RETURN ADDRESS OF CODE REVIEWING BODY HERE) PLEASE DO NOT RETURN THIS FORM TO THE FPPC. www.fppc.ca.gov FPPC Advice: advice fpnc.ca.gov (866.275.3772) Item 11 Page 18 Packet Page 3ff 80 1 ITEM 12 City Council Staff Report Report Type: CONSENT CALENDAR CITY O F Lead Department: City Clerk PALO ALTO Meeting Date: February 10, 2025 Report #:2501-4054 TITLE SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Various Chapters of Title 18 (Zoning) of the Palo Alto Municipal Code to Implement the 2023-2031 Housing Element (FIRST READING: January 21, 2025 PASSED 7-0) BACKGROUND The City Council heard this item on January 21, 2025 for a first reading and approved it on the following votes. No changes were made to the ordinance, and it is now before the City Council for a second reading. MOTION: Councilmember Burt moved, seconded by Councilmember Stone to adopt of Sections 1, 2, and 9 through 11, inclusive, of the proposed ordinance amending various chapters of Title 18 (Zoning) of the Palo Alto Municipal Code to implement the 2023-2031 Housing Element, regarding Housing Element Program 1.5A (Stanford University Lands). MOTION PASSED: 6-0-1, Veenker recused MOTION: Councilmember Stone moved, seconded by Mayor Lauing to adopt sections 1 and 3 through 11, inclusive, of the proposed ordinance amending various chapters of Title 18 (Zoning) of the Palo Alto Municipal Code to implement the 2023-2031 Housing Element, regarding Housing Element Programs 3.6D (Expedited Project Review), 4.1A (Replacement Housing), and 6.5C -G (Alternate Housing), and amending Title 21 (Subdivision and Other Divisions of Land) to incorporate changes as directed by Housing and Community Development (HCD) related to Senate Bill 9 implementation. MOTION PASSED: 7-0 ATTACHMENTS Attachment A - Ordinance of the Council of the City of Palo Alto Amending Various Chapters of Title 18 (Zoning) of the PAMC to Implement the 2023-2031 Housing Element APPROVED BY: Mahealani Ah Yun, City Clerk Item 12 Page 1 Packet Page 358 of 582 ITEM 12 *NOT YET APPROVED* Attachment A Ordinance No. Ordinance of the Council of the City of Palo Alto Amending Various Chapters of Title 18 (Zoning) of the Palo Alto Municipal Code to Implement the 2023-2031 Housing Element SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A. On May 8, 2023, the City Council adopted Resolution No. 10107, approving an Addendum to the Comprehensive Plan Environmental Impact Report (EIR), making various findings, and adopting the 2023-2031 Housing Element for the City of Palo Alto. B. On December 18, 2023, the City Council approved a Revised Addendum to the Comprehensive Plan EIR and adopted Ordinance No. 5608, rezoning sites in the 2023- 2031 Housing Element Sites Inventory to accommodate the City's Regional Housing Needs Allocation. C. On April 15, 2024, the City Council adopted Resolution No. 10155, making various findings, adopting a Revised 2023-2031 Housing Element, and authorizing the Director of Planning and Development Services to take further actions necessary to achieve certification of the Housing Element by the California Department of Housing and Community Development (HCD). D. On August 19, 2024, HCD found that the Revised 2023-2031 Housing Element, as further modified on July 17, 2024, was substantially compliant with state law. E. The City's Revised 2023-2031 Housing Element includes several programs that require updates to the Palo Alto Municipal Code in Fiscal Year 2025. These include parts of programs 1.5 (Stanford University Lands), 3.6 (Expedited Project Review), 4.1 (Replacement Housing), and 6.5 (Alternative Housing). F. On November 13, 2024, the Planning and Transportation Commission considered and recommended that the City Council adopt this ordinance to implement the 2023-2031 Housing Element. SECTION 2. Sections 18.20.030 (Land Uses) and 18.20.040 (Site Development Standards) of Chapter 18.20 (Office, Research, and Manufacturing (MOR, ROLM, RP and GM) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck through; unchanged text omitted by bracketed ellipses): 18.20.030 Land Uses (a) Permitted and Conditionally Permitted Land Uses 1 0160164_kb2_20240108_ay16 Item 12 Page 2 Packet Page 359 of 582 ITEM 12 *NOT YET APPROVED* Attachment A Table 1 lists the land uses permitted or conditionally permitted in the industrial and manufacturing districts. Table 1 Industrial/Manufacturing District Land Uses [P = Permitted Use CUP = Conditional Use Permit Required] MOR ROLM ROLM(E) RP RP(5) GM Subject to Regulations in Chapter: [...] [...] [...] [...] [...] [...] RESIDENTIAL USES Single -Family 18.20.040(b) Two -Family 18.20.040(b) Multiple -Family (Housing Element Opportunity Site) P P P 18.14.020 Multiple -Family CUP CUP(1) GU -PP CUP(1) 18.14.020L 18.42.200 Residential Care Homes P CUP CUP CUP 18.23.100(B) 18.42.200(B) [...] [...] [...] [...] [...] [...] Notes: (1) Adjacent to Bayshore Freeway and generally bounded by East Charleston Road and Loma Verde Avenue (see Figure 1), subject to CUP. (2) A CUP is required for residential development proposed on sites within 600 feet of a facility in which Tier 2 Hazardous Materials are manufactured, stored, used, or handled. In no event shall residential development be permitted on a site within 300 feet of a facility in which Tier 2 Hazardous Materials are manufactured, stored, used, or handled. This footnote shall be interpreted in a manner consistent with Section 18.42.200. (d) Emergency Shelters for the Homeless Emergency shelters for the homeless may be allowed as a permitted use in the ROLM(E) district on properties located east of Highway 101, subject to the following performance ands standards. An emereencv shelter in the ROLM(E) district shall be reviewed ministerially. without discretionary review. 2 0160164_kb2_20240108_ayl6 Item 12 Page 3 Packet Page 360 of 582 ITEM 12 *NOT YET APPROVED* Attachment A (1) The construction of and/or renovation of a building for use as an emergency shelter shall conform to all applicable building and fire code standards. (3) Shclters shall hove dcsignatcd smoking arcas that arc not visible from thc strcct and which arc in compliance with all other laws and r ulation. ('1) There shall be no space for outdoor congregating in front of the building adjacent to the street and n outdoor public telephone (5) There shallbe a refuse area screened from rview. (6-2) Maximum number of persons/beds. The emergency shelter for the homeless shall contain no more than 40 beds. (7) Size and location of exterior and interior on site waiting and client intake areas. Shelters shall provide 10 square feet of interior waiting and client intake space per bed. In addition, there shall be two office areas provided for shelter staff. Waiting and intake areas may be used for other purposes as needed during operations of the shelter. (8 3) On -site management and security. On -site management and on -site security shall be provided during hours when the emergency shelter is in operation. (19 4) The emergency shelter provider shall submit an operations plan that addresses the standards for operation contained in the Pale Alto Quality Assurance Standards for Emergency Shelters for the Homeless Santa Clara Countywide Quality Assurance Standards for Homeless Housing & Service Programs. (44 5) Length of stay. Temporary shelter shall be available to residents for no more than 68120 days. Extensions up to a total stay of 180 days may be provided if no alternative housing is available. ( 6) Outdoor lighting shall be sufficient to provide illumination and clear visibility to all outdoor areas, with minimal shadows or light leaving the property. The lighting shall be stationary and directed away from adjacent properties and public rights -of -way. [...j 18.20.040 Site Development Standards [...j (i) (Redd) Emergency Shelters for the Homeless 0160164kb220240108ay16 Item 12 Page 4 Packet Page 361 of 582 ITEM 12 *NOT YET APPROVED* Attachment A An emergency shelter for the homeless shall conform to all site development standards and performance criteria of the ROLM(E) zone district except as modified by the following standards: (1) Sufficient on -site parking shall be provided to accommodate all staff working in the emergency shelter. (2) Shelters shall provide 10 square feet of interior waiting and client intake space per bed. In addition, there shall be two office areas provided for shelter staff. Any outdoor waiting area shall be in a location not adjacent to the street. Waiting and intake areas may be used for other purposes as needed during the operations of the shelter. (3) There shall be a refuse area screened from view. SECTION 3. Table 1 (Minimum Off -Street Parking Requirements) of Section 18.52.040 (Off -Street Parking, Loading, and Bicycle Facility Requirements) of Chapter 18.52 (Parking and Loading Requirements) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended as follows (additions underlined; unchanged text omitted by bracketed ellipses): Use Vehicle Parking Requirement (# of spaces) Bicycle Parking Requirement Spaces Class 1 Long - Term (LT) and Short -Term (ST) [...] [...] [.. I SERVICES USES [...] [...] [...] Day Care Homes, Family (Large) 2 per dwelling unit, one of which shall be covered, plus one for each employee not residing at the home None Emergency Shelters for the 1 per employee not residing None Homeless at the shelter. [...] [...] [...] SECTION 4. Section 18.77.070 (Architectural Review Process) of Chapter 18.77 (Processing of Permits and Approvals) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended as follows (additions underlined; deletions struck through; unchanged text omitted by bracketed ellipses): 18.77.070 Architectural Review Process (c) Hearing and Recommendation for Major Projects, and for Minor Projects Upon Request 4 0160164_kb2_20240108_ay16 Item 12 Page 5 Packet Page 362 of 582 *N0T YET APPR0VED* Attachment A (1) Upon receipt of a completed application for a major project (as defined in Section 18.76.020(b)(2)), or upon receipt of a timely request for a hearing for a minor project (as defined in Section 18.76.020(b)(3)), the architectural review board shall set a hearing date to review the application. (2) Notice of the hearing shall be given at least 10 days prior to the hearing by publication in a local newspaper, by posting in a public place, and by mailing to the applicant, the hearing requestor, if applicable, and all residents and owners of property within 600 feet of the project. Notice shall include the address of the property, a brief description of the proposed project, and the date and time of the hearing. (3) Following the hearing, the architectural review board shall make a recommendation on the application, which shall be forwarded to the director. (4) A housing development proiect that is subiect to major Architectural Review under Section 18.76.020 shall be limited to two meetings before the Architectural Review Board, unless the applicant requests additional hearings. (d) Decision by the Director Upon receipt of a recommendation of the architectural review board: (1) Within 5 working days, the director shall prepare a written decision to approve the application, approve it with conditions, or deny it. (2) Notice of the director's decision shall be given by mailing to owners and residents of property within 600 feet of the property, and by posting in a public place. Notice shall include the address of the property, a brief description of the proposed project, a brief description of the action to be taken, the date the decision will be final, and a description of how to request a hearing. (3) The director's decision shall become final 14 days after the date notice is mailed unless an appeal is filed. The director may, for good cause, specify in writing a longer period for requesting a hearing at the time he or she issues the proposed decision. (4) If the architectural review board continues a minor project or housing development project more than once, or a major project more than twice, the director may make a decision on the application prior to receiving the final recommendation of the board. [...1 SECTION 5. Section 18.14.060 (By Right Housing Projects) of Chapter 18.14 (Housing Incentives) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby added as follows: 18.14.060 By Right Housing Projects (a) Affordable Housing on Higher Education and Religious Lands 5 0160164_kb2_20240108_ay16 Item 12 Page 6 Packet Page 363 of 582 ITEM 12 *NOT YET APPROVED* Attachment A (1) Notwithstanding any conflicting provision of this Title 18 or the Comprehensive Plan, a qualifying housing development project under California Government Code Section 65913.16 shall be a use by right. (2) Housing development projects utilizing this section in the R-1 Single -Family Residential District and the Low -Density Residential Districts shall be subject to the development standards for the RM-30 zoning district, except that the maximum Floor Area Ratio (FAR) shall be 1.25. (3) All housing development projects utilizing this section shall comply with Chapter 18.24 (Contextual Design Criteria and Objective Design Standards). (b) Supportive Housing in Multi -family and Mixed -use Zones (1) Supportive housing shall be a use by -right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses, if the proposed housing development satisfies all of the requirements of California Government Code Sections 65650-65656. (2) All housing development projects utilizing this section shall comply with Chapter 18.24 (Contextual Design Criteria and Objective Design Standards). (c) Low Barrier Navigations Centers in Multi -family and Mixed -use Zones (1) Low barrier navigation centers shall be a use by -right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses, if the proposed project satisfies all of the requirements of California Government Code Sections 65660-65658. (d) Group Homes in Residential Zones (1) As used in this Section, "group home" means housing shared by unrelated persons with disabilities that provide peer and other support for their residents' disability - related needs and in which residents share cooking, dining, and living areas. Group home includes Residential Care Home, as defined in Section 18.04.030. (2) Group homes that do not provide services requiring licenses under state law and Residential Care Homes shall be uses by -right in residential zones, subject only to those standards and requirements applicable to residential uses. (e) Provided they comply with the City's objective standards, by -right projects under this section shall not be subject to any discretionary review nor environmental review under the California Environmental Quality Act. By -right projects under this section shall be processed in accordance with Section 18.77.074. SECTION 6. Section 18.40.160 (Replacement Project or Discretionary Review Required) of Chapter 18.40 (General Standards and Exceptions) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck_ through): 18.40.160 Replacement Project or Discretionary Review Required 6 0160164_kb2_20240108_ayl6 Item 12 Page 7 Packet Page 364 of 582 l�h��u�if�a *N0T YET APPR0VED* Attachment A (a) Except where necessary for health and safety purposes (as determined by the City's Building Official), N -no permit required under Title 2 (Administrative Code), Title 12 (Public Works and Utilities), or Title 16 (Building Regulations) shall be issued: (1) For demolition or deconstruction of a single-family residence or duplex in the Low - Density Residential District (Chapter 18.10) or Single -Family Residential District (Chapter 18.12), except where for health and safety purposes (as determined bythe City's uilding Official), unless building permit plans for a replacement project have been approved. This subsection shall also apply to the demolition of a single-family residence or duplex in the Multiple Family Residential District (Chapter 18.13) when the replacement project does not require discretionary review. (b) No permit required under Title 2 (Administrative , Title 12 (Public Works and Utilities), Title 16 (Banding Regulations) shall be issued (2) For any project requiring discretionary review under Title 18 or Title 21, unless the application for discretionary review has been approved. (3) For demolition or deconstruction of a residential unit, unless a replacement project has been approved that contains at least as many residential dwelling units as will be demolished. Al If the Dr000sed development Droiect is not a housine development project, the replacement housing units may be located on a site other than the project site but shall be located within Palo Alto and shall be developed prior to or concurrently with the proposed development project. (B) If the existing residential unit(s) is a nonconforming use, it shall be replaced in a manner consistent with the current zone district regulations. (C) Replacement of Protected Units, as those terms are defined in California Government Code Section 66300.5. shall be subiect to the additional requirements of California Government Code Section 66300.6. SECTION 7. Sections 18.28.020 (Definitions) 18.28.040 (Land Uses), 18.28.070 (Additional OS District Regulations), and 18.28.080 (Additional AC District Regulations) of Chapter 18.28 (Special Purpose (PF, OS, and AC) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code are hereby amended as follows (additions underlined; unchanged text omitted by bracketed ellipses): 18.28.020 Definitions As used in this chapter, unless otherwise apparent from the context, the following definitions shall apply: (a) "Conservation or natural resource land" means land which possesses or encompasses conservation or natural resources. (b) "Conservation or natural resource" includes, but is not necessarily limited to, streams, watersheds, groundwater recharge, soils, wildlife habitat, as defined in this section, special landforms, and natural vegetation. 7 0160164_kb2_20240108_ay16 Item 12 Page 8 Packet Page 365 of 582 *NOT YET APPROVED* Attachment A (c) "Farmworker housing" means employee housing, as that term is defined in California Health and Safety Code Section 17008, for agricultural employees, as that term is defined in California Labor Code Section 1104.4. (e d) "Open space land" means any parcel or area of land essentially unimproved or in its natural state, and devoted to an open space use as defined in this section, and which is designated in the open space element for an open space use. (4 e) "Open space district" means any area of land or water designated "OS" and subject to all of the terms and regulations of this chapter. (e f) "Open space use" means the use of land for: (1) Public recreation; (2) Enjoyment of scenic beauty; (3) Conservation or use of natural resources; (4) Production of food or fiber; (5) Protection of persons and their artifacts (buildings, property, etc.); (6) Containment and structuring of urban development. (f g) "Recreation land" means any area of land or water susceptible to recreational uses. (g h) "Scenic land" means any area of land or water that possesses scenic qualities worthy of preservation. (# i) "Wildlife habitat" means any area of land or water valuable or necessary to the preservation or enhancement of wildlife resources. 18.28.040 Land Uses Table 1 shows the permitted (P) and conditionally permitted (CUP) land uses for the Special Purpose Districts. Table 1 Land Uses PF OS AC Subject to Regulations in Chapter: [...] [...] [...] [...] [...] AGRICULTURAL AND OPEN SPACE USES Agricultural Uses, including animal husbandry, crops, P P 8 0160164_kb2_20240108_ay16 Item 12 Page 9 Packet Page 366 of 582 ITEM 12 *NOT YET APPROVED* Attachment A dairying, horticulture, nurseries, livestock farming, tree farming, viticulture, and similar uses not inconsistent with the intent and purpose of this chapter, including farmworker housing(3) in accordance with the California Health and Safety Code [...] [...] [...] [...] [...] RESIDENTIAL USES Single-family dwellings Pll Manufactured housing (including P 12.40- mobile homes on permanent 18.42.100 foundations) [...] [...] [...] [...] [...] Footnotes: (1) Provided such use is conducted on property owned by the City of Palo Alto, the County of Santa Clara, the State of California, the government of the United States, the Palo Alto Unified School District, or any other governmental agency, and leased for said uses. (2) An accessory dwelling unit or a Junior Accessory Dwelling Unit associated with a single- family residence on a lot in the OS District is permitted, subject to the provisions of Section 18.42.040, and such that no more than two total units result on the lot. (3) In accordance with California Health and Safety Code Section 17021.5, employee housing for six (6) or fewer employees shall be deemed a single-family structure. In accordance with Health and Safety Code Section 17021.6, qualifying farmworker housing shall be considered an aericultural use. 18.28.070 Additional OS District Regulations The following additional regulations shall apply in the OS district: (a) Accessory Dwelling Units and Junior Accessory Dwelling Units Accessory Dwelling Units and Junior Accessory Dwelling Units are subject to the regulations set forth in Section 18.42.040. (b) Site and Design Approval All sites in the OS district shall be subject to the Site Design and Review Combining District (D) as provided in Chapter 18.30(G) of the Zoning Ordinance, subject to the following modifications: (1) Minor Site and Design Review: For minor projects (e.g., fences, landscape changes to an approved project, trash enclosures, accessory buildings 200 square feet or less, etc.), the 9 0160164_kb2_20240108_ay16 Item 12 Page 10 Packet Page 367 of 582 *NOT YET APPROVED* Attachment A review process shall follow the Minor Architectural Review (staff level) procedures as outlined in Section 18.77.070. To qualify as a minor project, the project shall have less than 10 cubic yards of excavation and or grading and be Categorically Exempt from the California Environmental Quality Act (CEQA). (2) Major Site and Design Review: For all other projects not reviewed as Minor Site and Design Review, the project will be forwarded to the Planning and Transportation Commission for review and recommendation and then placed on the Council Consent agenda for final action, as prescribed for staff actions outlined in Section 18.77.060 (Standard Staff Review Process). Provided, however, that the following projects may be forwarded directly to the City Council Consent agenda by staff, without review by the Planning and Transportation Commission, where all of the following conditions apply: a. The project is not a second dwelling unit; and b. The project would comprise less than 1,000 square feet of floor area, less than 1,000 square feet of impervious cover, and less than 100 cubic yards of excavation and/or grading; and c. The proposed floor area or impervious cover would not exceed 50% of the allowable for the site; and d. The project and any prior projects within the prior five years would not cumulatively exceed these thresholds. (3) Farmworker housine may be entitled to streamlined review Dursuant to California Health and Safety Code Section 17021.8. I�1 18.28.080 Additional AC District Design Requirements The following additional regulations shall apply in the AC district: (a) Site and Design Approval All sites in the AC district shall be subject to the Site Design and Review Combining District (D) regulations as provided in Chapter 18.30(G), except that farmworker housing may be entitled to streamlined review Dursuant to California Health and Safety Code Section 17021.8. (b) Location of Agricultural Facilities Barns, stables, sheds, chicken houses, and other similar facilities for the shelter and feeding of animals, exclusive of domestic household pets, shall be located a minimum of 40 feet from any site line. SECTION 8. Section 21.10.040 (General Requirements) of Chapter 21.10 (Parcel Maps for Urban Lot Splits in Single -Family Zones) of Title 21 (Subdivisions and Other Divisions of Land) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck through): 10 0160164_kb2_20240108_ay16 Item 12 Page 11 Packet Page 368 of 582 ITEM 12 *NOT YET APPROVED* Attachment A 21.10.040 General requirements. (a) The minimum size for a parcel created by an Urban Lot Split is 1,200 square feet. (b) The lots created by an Urban Lot Split must be of approximately equal area, such that no resulting parcel shall be smaller than 40 percent of the lot area of the original parcel proposed for subdivision. (c) Where existing dwelling units on the property are to remain, no lot line may be created under this Chapter in a manner that would bisect any structure or that would result in more than two dwelling units on any resulting parcel. (d) Newly created lot lincs shall not rcndcr an existing structurc noncomplying in any rcspcct (e.g. floor arca ratio, lot coverage, parking), nor increase the dcgree of noncompliance of an ;sting noncompliant structur„ Reserved. (e) Each parcel shall comply with any objective lot design standards for Urban Lot Splits adopted by the City Council. (f) Utility easements shall be shown on the parcel map and recorded prior to, or concurrent with the final parcel map recordation. (g) A covenant necessary for the maintenance of stormwater treatment facilities shall be recorded prior to, or concurrent with final map recordation. (h) Existing driveways to be demolished shall follow the procedure(s) in 12.08.090 Elimination of abandoned driveway. (i) A maintenance agreement shall be recorded to ensure shared maintenance of any shared access easements, stormwater treatment, landscaping, and private utilities, prior to final parcel map recordation. SECTION 9. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 10. In accordance with the California Environmental Quality Act (CEQA), the City prepared an Addendum to the 2017 Comprehensive Plan Environmental Impact Report (EIR), analyzing the potential environmental impacts of the 2023-2031 Housing Element. On May 8, 2023, the City Council adopted Resolution No. 10107, and on December 18, 2023, the City Council approved a Revised Addendum, finding that the Addendum, as revised, and the 2017 EIR 11 0160164_kb2_20240108_ay16 Item 12 Page 12 Packet Page 369 of 582 *NOT YET APPROVED* ITEM 12 Attachment A adequately analyzed the environmental impacts of the Housing Element, including the Programs implemented by this ordinance. SECTION 11 its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk This Ordinance shall be effective on the thirty-first date after the date of APPROVED AS TO FORM: Assistant City Attorney Mayor APPROVED: City Manager Director of Planning and Development Services 12 0160164_kb2_20240108_ay16 Item 12 Page 13 Packet Page 370 of 582 ITEM 13 Palo Alto Public Improvement Corporation Staff Report From: City Manager CITY O F Report Type: ACTION ITEMS PALO Lead Department: Administrative Services ALTO Meeting Date: February 10, 2025 Report #:2411-3806 TITLE Approval of the FY 2024 Public Improvement Corporation's Annual Financial Report; CEQA Status: Not a Project RECOMMENDATION Staff recommends that the Board of Directors of the Palo Alto Public Improvement Corporation (PIC) approve the FY 2024 Annual Financial Report for the Palo Alto Public Improvement Corporation. BACKGROUND The PIC is a nonprofit corporation formed by the City in 1983, allowing the City to issue Certificates of Participation (COPs) to fund capital improvements. The PIC, through a lease structure, finances the acquisition, improvement, and construction of City facilities. The PIC uses the lease payments by the City's General Fund to pay the debt service on the COPs. On July 13, 1998, Council adopted a resolution establishing itself as the Board of Directors of the PIC. The bylaws of the PIC require the Board of Directors of the Corporation to meet at least annually and approve the annual financial report for the Corporation. Therefore, the City Council is required to meet annually as the Board of the PIC. In 1983 and 1998, the City of Palo Alto issued COPs to fund improvements to the Civic Center and the Golf Course, respectively. In 2002, the Civic Center bonds were refinanced due to a lower interest rate environment and COPs were issued to finance the construction of commercial space adjacent to the new parking structure on Bryant/Florence Street. These bonds (referred to as the Downtown Parking Improvement bonds or 2002B COP) were used to build a two story above -ground structure of approximately 7,638 square feet at 445 Bryant Street, which was previously leased to a commercial tenant (operating as a gym). The building is in the process of transitioning into a community center, including future use by La Comida de California to host a senior nutrition program on a part-time basis. Item 13 Page 1 Packet Page 371 of 582 ITEM 13 In fiscal year 2018, the City issued the 2018 Capital Improvement Project and Refinancing COPs in the amount of $9 million to refinance the 2002B COPs ($0.6 million) and to finance renovations for the Palo Alto Municipal Golf Course ($8.4 million). Fire Station 1 was used as the leased property and collateral for these COPs since it had a market value closer to the COPs issuance amount. The net present value savings of $0.2 million or 6.47 percent on the 2002B refunded bonds and the Civic Center substituted Fire Station 1 as the leased property/collateral. This provided flexibility to leverage the high value of the Civic Center to finance the 2021 Public Safety building COPs. In fiscal year 2019, the City issued the California Avenue Parking Garage Tax-exempt Series A ($26.8 million plus $4.9 million premium) and Taxable Series B ($10.6 million) COPs. These bonds were issued to fund the construction of the new California Avenue parking garage. Rinconada Library was used as collateral during the garage construction, and upon completion of the garage, the newly built California Avenue Parking garage became the leased property/collateral for these COPs. To preserve greater operational flexibility to use this garage facility over the life of the bonds (e.g., lease portion of the garage for private parking or other commercial use), a portion of the bonds were issued as taxable bonds. In fiscal year 2021, the City issued the 2021 Public Safety Building tax-exempt COPs ($101.5 million plus $6.5 million premium) for the construction of the City's new public safety building. The debt service is payable solely from and secured by the lease payments to be made by the City's General Fund to the Public Improvement Corporation pursuant to the Lease Agreement. Civic Center was used as collateral during the building construction and, upon completion of the building, the newly build Public Safety Building will become the leased property/collateral for these COPs. The reserve account requirement was waived based on the City's Financial Advisor's recommendation on all the outstanding COPs due to the City being a highly rated bond issuer. This resulted in lower bonds issuance amount and the related interest savings. Item 13 Page 2 Packet Page 372 of 582 ITEM 13 ANALYSIS The attached financial statement shows the financial condition of the PIC. The debt service payments have been made on time and all financial requirements have been met. At year-end, June 30, 2024, total outstanding debt principal on the COPs equaled $141.8 million as follows: Staff recommends that the Board of Directors of the Palo Alto Public Improvement Corporation (PIC) approve the FY 2024 Annual Financial Report for the PIC. FISCAL/RESOURCE IMPACT Approval of the Palo Alto Public Improvement Corporation's Annual Financial Report will have no resource impact. STAKEHOLDER ENGAGEMENT Staff works internally and coordinates with the City Auditor's Office third party external auditor Macias Gini & O'Connell LLP (MGO) to prepare this report. ENVIRONMENTAL REVIEW This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378, because it is an administrative activity that will not result in either a direct or reasonably foreseeable indirect physical changes in the environment. ATTACHMENTS Attachment A: Palo Alto Public Improvement Fiscal Year 2024 Annual Financial Report APPROVED BY: Lauren Lai, Administrative Services Director Item 13 Page 3 Packet Page 373 of 582 ITEM 13 Attachment A PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto, California) Annual Financial Report For the Year Ended June 30, 2024 Certified MGO Public Accountants Item 13 Page 4 Packet Page 374 of 582 ITEM 13 Attachment A Item 13 Page 5 Packet Page 375 of 582 ITEM 13 Attachment A PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto, California) Annual Financial Report For the Year Ended June 30, 2024 Table of Contents Page IndependentAuditor's Report................................................................................................................... l Management's Discussion and Analysis (Unaudited).............................................................................. 3 Basic Financial Statements Government -wide Financial Statements: Statementof Net Position................................................................................................................... 5 Statementof Activities....................................................................................................................... 6 Debt Service Fund Financial Statements: BalanceSheet..................................................................................................................................... 7 Statement of Revenues, Expenditures and Changes in Fund Balance ................................................8 8 Notes to the Basic Financial Statements.................................................................................................. 9 Item 13 Page 6 Packet Page 376 of 582 ITEM 13 Attachment A This Page Intentionally Left Blank Item 13 Page 7 Packet Page 377 of 582 ITEM 13 Certified m G 0 Attachment A Public Accountants Independent Auditor's Report Board of Director of the Palo Alto Public Improvement Corporation The Honorable Mayor and Members of the City Council of the City of Palo Alto, California Opinions We have audited the financial statements of the governmental activities and the major fund of the Palo Alto Public Improvement Corporation (Corporation), a component unit of the City of Palo Alto, California (City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the Corporation's basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the major fund of the Corporation as of June 30, 2024, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Corporation and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements The Corporation's management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Corporation's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Macias Gini & O'Connell LLP 2121 N. California Boulevard, Suite 750 www.mgocpa.com Walnut Creek, CA94596 Item 13 Page 8 Packet Page 378 of 582 ITEM 13 Attachment A Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we: • exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation's internal control. Accordingly, no such opinion is expressed. • evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Corporation's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control —related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Walnut Creek, California November 8, 2024 Item 13 Page 9 Packet Page 379 of 582 ITEM 13 Attachment A PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto, California) Management's Discussion & Analysis (Unaudited) For the Year Ended June 30, 2024 The Palo Alto Public Improvement Corporation (Corporation), a component unit of the City of Palo Alto (City), follows the provisions of Governmental Accounting Standards Board (GASB). The Corporation is controlled by the City and was organized to assist the City in financing public improvements. The Corporation issues debt and turns the proceeds of the debt over to the City under lease agreements that provide a revenue source for the repayment of this debt. The Corporation has three outstanding debts and has turned over the proceeds to the City, which pledged certain lease payments as collateral for this debt as discussed in Note 4 to the financial statements. FINANCIAL HIGHLIGHTS GASB requires the issuance of government -wide financial statements as well as fund financial statements. The government -wide financial statements report the balance of the Corporation's long-term debt while the individual fund statements do not. In fiscal year 2018, the City issued 2018 Capital Improvement Project and Refinancing Certificates of Participation (2018 COPs) in the amount of $9.0 million to refinance the 2002B Downtown Parking Improvements Certificates of Participation remaining balance of $0.8 million, and also to fund the Palo Alto Municipal Golf Course renovations. In fiscal year 2019, the City issued the 2019 California Avenue Parking Garage tax exempt Series A and taxable Series B Certificates of Participation (2019A and 2019B COPs) in the amount of $26.8 million plus $4.9 million premium, and $10.6 million, respectively. The 2019A and 2019B COPs were issued to fund the construction of the new California Avenue parking garage. In fiscal year 2021, the City issued the 2021 Public Safety Building Certificates of Participation (2021 COPs) in the amount of $101.5 million plus $6.5 million premium. The 2021 COPs were issued to fund the construction of the new public safety building. As of June 30, 2024, the Corporation has the following outstanding debt: the 2018 COPs, 2019A and 2019B COPs, and 2021 COPs. At the government -wide level, the interest and fiscal agent charges were $4.5 million for fiscal year 2024, an increase of $0.2 million from the prior year. The interest on leases from the City of Palo Alto was $4.5 million, an increase of $1.6 million from the prior year. The increase is mainly due to the one-time usage of cash and investments held by the Corporation for interest payments in prior year. The Corporation ended fiscal year 2024 with total assets of $152.4 million, a decrease of $3.4 million from the prior year. Total assets consisted of $0.1 million in cash and investments, $0.8 million of lease interest receivable from the City of Palo Alto, and $151.5 million of investment in leases to the City of Palo Alto. The total liabilities were $152.3 million, a decrease of $3.4 million from the prior year. The decrease of assets and liabilities resulted from scheduled principal and interest payments of the 2018 COPs, the 2019A and 2019B COPs, and the 2021 COPs. As of June 30, 2024, the Corporation reported a $0.1 million restricted net position. At the fund level, the Corporation's revenues exceeded expenditures by $17,000. As of June 30, 2024, the Corporation had one fund, the Debt Service Fund, which reported a $0.1 million restricted fund balance. Item 13 Page 10 Packet Page 380 of 582 ITEM 13 Attachment A PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto, California) Management's Discussion & Analysis (Unaudited) (Continued) For the Year Ended June 30, 2024 OVERVIEW OF THE CORPORATION'S BASIC FINANCIAL STATEMENTS The annual financial report is comprised of two parts: 1) Management's discussion and analysis (this part), 2) The basic financial statements, which include the government -wide and the fund financial statements, along with the notes to these financial statements. The basic financial statements comprise the government -wide financial statements and the fund financial statements. These two sets of financial statements provide two different views of the Corporation's financial activities and financial positions, both short-term and long-term. The government -wide financial statements provide a long-term view of the Corporation's activities as a whole, and comprise the statement of net position and the statement of activities. The statement of net position provides information about the financial position of the Corporation as a whole, including all its long-term liabilities on the full accrual basis, similar to that used by corporations. The statement of activities provides information about all the Corporation's revenues and expenses on the full accrual basis, with the emphasis on measuring net revenues or expenses of the Corporation's program. The statement of activities explains in detail the change in net position for the year. The fund financial statements report the Corporation's operations in more detail than the corporate -wide statements and focus primarily on the short-term activities of the debt service fund. Fund financial statements measure only current revenues and expenditures; current assets, liabilities and fund balances; and they exclude capital assets and long-term debt. Together, these statements along with the notes to the financial statements are called the basic financial statements. DEBT ADMINISTRATION The Corporation issues debt in the form of Certificates of Participation (COPs) to be repaid from future lease receipts from the City. Legally, these COP issues are the Corporation's debt only; the City is liable only for the payment of the amounts set forth in the lease securing each debt issue. As of June 30, 2024, the Corporation has the following outstanding debt (excluding premium): 2018 COPs, 2019A and 2019B COPs, and 2021 COPs with outstanding principal balances of $8.0 million, $34.4 million and $99.4 million, respectively. ECONOMIC OUTLOOK AND MAJOR INITIATIVES The economy of the City and its major initiatives for the coming year are discussed in detail in the City's Annual Comprehensive Financial Report. CONTACTING THE CORPORATION'S FINANCIAL MANAGEMENT These basic financial statements are intended to provide citizens, taxpayers, investors, and creditors with a general overview of the Corporation's finances. Questions about these financial statements should be directed to the Finance Department of the City of Palo Alto, 250 Hamilton Avenue, Palo Alto, CA 94301. Item 13 Page 11 Packet Page 381 of 582 ITEM 13 Attachment A PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto) Statement of Net Position June 30, 2024 Assets Cash held for operations $ 97,168 Cash and investments held by trustee 4,876 Lease interest receivable 801,133 Investment in leases to the City of Palo Alto 151,459,015 Total assets 152,362,192 Liabilities Interest payable 801,133 Long-term debt: Due in one year 3,578,253 Due in more than one year 147,880,762 Total liabilities 152,260,148 Net Position Restricted for debt service $ 102,044 See accompanying notes to financial statements. Item 13 Page 12 5 Packet Page 382 of 582 ITEM 13 Attachment A PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto) Statement of Activities For the Year Ended June 30, 2024 Expenses Interest and fiscal agent charges $ 4,447,773 Program revenues Interest on leases from the City of Palo Alto 4,448,620 Net program revenues 847 General revenues Investment earnings 15,846 Change in net position 16,693 Net position, beginning of the year 85,351 Net position, end of the year $ 102,044 See accompanying notes to financial statements. Item 13 Page 13 6 Packet Page 383 of 582 ITEM 13 Attachment A PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto) Balance Sheet Debt Service Fund June 30, 2024 Assets Cash held for operations Cash and investments held by trustee Lease interest receivable Investment in leases to City of Palo Alto Total assets Deferred Inflows of Resources Unavailable lease receipts from the City of Palo Alto Fund balance Restricted for debt service Total deferred inflows of resources and fund balance Reconciliation of fund balance to net position Fund balance restricted for debt service Long-term receivables are not available to pay for current period expenditures and are considered unavailable on the governmental fund balance sheet. Some liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in governmental funds. Interest payable Long-term debt due within one year Long-term debt due in more than one year Net position of governmental activities $ 97,168 4,876 801,133 151,459,015 $ 152,362,192 $ 152,260,148 102,044 $ 152,362,192 $ 102,044 152,260,148 (801,133) (3,578,253) (147,880,762) $ 102,044 See accompanying notes to financial statements. Item 13 Page 14 7 Packet Page 384 of 582 ITEM 13 Attachment A PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto) Statement of Revenues, Expenditures and Changes in Fund Balance Debt Service Fund For the Year Ended June 30, 2024 Revenues: Lease receipts from the City of Palo Alto: Principal $ 3,025,000 Interest 4,880,640 Other 847 Investments earnings 15,846 Total revenues 7,922,333 Expenditures: Debt service: Principal repayment 3,025,000 Interest and fiscal agent charges 4,880,640 Total expenditures 7,905,640 Net change in fund balance 16,693 Fund balance, beginning of the year 85,351 Fund balance, end of the year $ 102,044 Reconciliation of net change in fund balance to change in net position Net change in fund balance - debt service fund $ 16,693 Amounts reported for governmental activities in the statement of activities are different because: Repayment of bond principal is an expenditure in the governmental funds, but in the statement of net position the repayment reduces long-term liabilities. 3,025,000 Interest accrued on long-term debt and amortization of bond premium do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Change in interest payable 24,614 Amortization of bond premium 408,253 Some amounts reported in the statement of revenues, expenditures and changes in fund balances reflect the timing of collection of assets which are not includable as revenues on the statement of activities. Lease receipt for bond principal repayment (3,025,000) Lease receipt for interest payment (24,614) Impact of bond premium amortization on lease receipt (408,253) Change in net position of governmental activities $ 16,693 See accompanying notes to financial statements. Item 13 Page 15 Packet Page 385 of 582 8 ITEM 13 Attachment A PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto, California) Notes to the Basic Financial Statements For the Year Ended June 30, 2024 NOTE 1— DESCRIPTION OF REPORTING ENTITY The Palo Alto Public Improvement Corporation (the Corporation) was incorporated in September 1983 under the General Nonprofit Corporation Law of the State of California to acquire, construct and lease capital improvement projects. The Corporation is exempt from federal income taxes under Section 501(c)(4) of the Internal Revenue Code. The Corporation provides financing of public capital improvements for the City through the issuance of Certificates of Participation (COPs), a form of debt which allows investors to participate in a stream of future lease payments. Proceeds from the COPs are used to construct projects which are leased to the City for lease payments which are sufficient in timing and amount to meet the debt service requirements of the COPs. The Corporation is an integral part of the City of Palo Alto, California (City). It primarily services the City and its governing body is composed of the City Council. Therefore, the financial data of the Corporation has also been included as a blended component unit within the City's annual comprehensive financial report for the year ended June 30, 2024. NOTE 2— SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation Government -wide Statements: The statement of net position and the statement of activities include the financial activities of the Corporation. Eliminations have been made to minimize the double counting of internal activities. The statement of activities presents a comparison between direct expenses and program revenues for each function of the Corporation's activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including investment earnings, are presented as general revenues. Fund Financial Statements: The fund financial statements provide information about the Corporation's funds. The emphasis of fund financial statements is on major individual funds, of which the Corporation only reports one debt service fund. (b) Major Fund Major funds are defined as funds that have either assets, liabilities, revenues or expenditures equal to ten percent of their fund -type total and five percent of the grand total. The Corporation has one fund which is reported as a major governmental fund in the accompanying financial statements as follows: Debt Service Fund — This fund accounts for debt service payments on the Corporation's long-term debt. Item 13 Page 16 Packet Page 386 of 582 ITEM 13 Attachment A PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto, California) Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 NOTE 2— SIGNIFICANT ACCOUNTING POLICIES (Continued) (c) Basis of Accounting The government -wide financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned ad expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers revenues susceptible to accrual to be available if the revenues are collected within ninety days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. (d) Investment in Leases Improvements financed by the Corporation are leased to the City for their entire estimated useful life and will become the City property at the conclusion of the lease on November 1, 2050. The Corporation therefore records the present value of the lease and considers the leased improvement to have been sold for this amount when leased. (e) Net Position The government -wide financial statements utilize a net position presentation. Net position is further categorized as net investment in capital assets, restricted and/or unrestricted. As of June 30, 2024, the entire net position was considered restricted. Restricted Net Position — This category presents external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. (f) Deferred Inflows of Resources A deferred inflow of resources is defined as an acquisition of net asset or fund balances applicable to a future reporting period and will not be recognized as an inflow of resources (revenue) until that time. On the governmental fund balance sheet, the lease receipts from the City corresponding to the debt are recorded as deferred inflows of resources since the balances are not current financial resources. (g) Fund Balances At June 30, 2024, the Corporation's governmental fund's fund balances include the following classification: Restricted Fund Balance — includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers. Item 13 Page 17 Packet Page 387 of 582 10 ITEM 13 Attachment A PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto, California) Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 NOTE 2- SIGNIFICANT ACCOUNTING POLICIES (Continued) (h) Estimates The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. NOTE 3— CASH AND INVESTMENTS HELD BY TRUSTEE (a) Interest Rate Risk Interest rate risk is the risk that a change in market interest rates will adversely affect the fair value of an investment. Normally, the longer it takes an investment to reach maturity, the greater will be that investment's sensitivity to changes in market rates. Information about the sensitivity of the fair values of the Corporation's investments to market interest rate fluctuations is provided by the following table that shows the distribution of the Corporation's investments by maturity: Investment Type Amount Maturity Date Money Market Mutual Fund $ 4,876 31 days (b) Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. As of June 30, 2024, the Corporation's investments in money market mutual funds are rated AAAm by Standard & Poor's. (c) Fair Value Hierarchy The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The Corporation's investments in money market mutual funds are not subject to the fair value hierarchy. (d) Investment Policy The Corporation must maintain required amounts of cash and investments by trustee under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged as reserves to be used if the Corporation fails to meet its obligation under these debt issues. The California Government Code (Code) requires these funds to be invested in accordance with bond indentures or State statutes. All these funds have been invested as permitted under the Code and bond indentures, including the cash held for operations invested in the City's investment pool. The City's investment policy is described in detail in the City's Annual Comprehensive Financial Report. Item 13 Page 18 Packet Page 388 of 582 11 ITEM 13 Attachment A PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto, California) Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 NOTE 3- CASH AND INVESTMENTS HELD BY TRUSTEE (Continued) The table below identifies the investment types that are authorized by the City's investment policy. The table also identifies certain provisions of the City's Investment Policy that address interest rate risk, credit risk and concentration of credit risk. Maximum Maximum Maximum Minimum Percentage Investment in Authorized Investment Type Maturity Credit Quality of Portfolio One Issuer U.S. Government Securities 10 years (*) N/A No Limit No Limit U.S. Government Agency Securities 10 years (*) N/A No Limit (A) No Limit Certificates of Deposit 10 years (*) N/A 20% 10% of the par value of portfolio Bankers Acceptances 180 days N/A 30% $5 million Commercial Paper 270 days A-1 15% $3 million (B) Local Agency Investment Fund N/A N/A No Limit $75 million per account Short -Term Repurchase Agreements 1 year N/A No Limit No Limit City of Palo Alto Bonds N/A N/A No Limit No Limit Money Market Deposit Accounts N/A N/A No Limit No Limit Mutual Funds N/A N/A 20% 10% Negotiable Certificates of Deposit 10 years (*) N/A 10% $5 million Medium -Term Corporate Notes 5 years AA 10% $5 million California State and Municipal and other 10 years (*) AA/AA2 40% No Limit 49 State Issued Bonds Supranational 5 years AA/AA2 20% 10% of the par value of portfolio (A) Callable and multi -step securities are limited to no more than 25% of the par value of the portfolio, provided that: 1) the potential call dates are known at the time of purchase, 2) the interest rates at which they "step- up" are known at the time of purchase, and 3) the entire face value of the security is redeemed at the call date. (B) The lesser of $3 million or 10% of outstanding commercial paper of any one institution. (*) The maximum maturity is based on the Investment Policy that is approved by the City Council and is less restrictive than the California Governmental Code. Item 13 Page 19 Packet Page 389 of 582 12 ITEM 13 Attachment A PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto, California) Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 NOTE 4— LONG-TERM DEBT The Corporation's long-term debt activities are presented below: Balance Balance Amount due July 1, 2023 Retirements June 30, 2024 in one year Certificates of Participation 2018 Capital Improvement Project 2.20-4.22%, due 11/1/2047 $ 8,185,000 $ 200,000 $ 7,985,000 $ 205,000 2019 California Ave. Parking Garage Series A & B 2.5%-5%, due 11/1/2048 35,055,000 690,000 34,365,000 720,000 2021 Public Safety Building 2%-5%, due 11/1/2050 101,505,000 2,135,000 99,370,000 2,245,000 Add: Unamortized Premium 10,147,268 408,253 9,739,015 408,253 Total $ 154,892,268 $ 3,433,253 $ 151,459,015 $ 3,578,253 On June 1, 2018, the City issued the 2018 Capital Improvement Project and Refinancing Certificates of Participation (2018 COPs) in the amount of $9.0 million to fully refinance the 2002B Downtown Parking Improvement Project Certificates of Participation and to fund the renovation of the Palo Alto Municipal Golf Course. Principal payments are due annually on November 1 and interest payments semi-annually at various rates on May 1 and November 1. The 2018 COPs are secured by lease revenues received by the Corporation from any City's General Fund revenue source. On March 21, 2019, the City issued the 2019 California Avenue Parking Garage tax exempt Series A and taxable Series B Certificates of Participation (2019A and 2019B COPs) in the amount of $26.8 million plus $4.9 million premium, and $10.6 million, respectively, for the construction of the new California Avenue Parking Garage. Principal payments are due annually on November 1 and interest payments semi-annually at various rates on May 1 and November 1. The 2019A and 2019B COPs are secured by lease revenues received by the Corporation from any City's General Fund revenue source. On March 24, 2021, the City issued the 2021 Public Safety Building Certificates of Participation (2021 COPs) in the amount of $101.5 million plus $6.5 million premium for the construction of the new public safety building. Principal payments are due annually on November 1 and interest payments semi-annually at various rates on May 1 and November 1. The 2021 COPs are secured by lease revenues received by the Corporation from any City's General Fund revenue source. Item 13 Page 20 Packet Page 390 of 582 13 ITEM 13 Attachment A PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto, California) Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024 NOTE 4— LONG-TERM DEBT (Continued) Future annual debt service on the outstanding debt is shown below: For the Year Ending June 30, 2025 2026 2027 2028 2029 2030-2034 2035-2039 2040-2044 2045-2049 2050-2051 Principal 3,170,000 3,335,000 3,495,000 3,675,000 3,865,000 22,180,000 26,485,000 30,650,000 35,065,000 9,800,000 $ 141,720,000 Interest 4,729,196 4,569,844 4,402,268 4,226,076 4,040,594 17,292,031 12,950,680 8,726,392 3,750,799 221,738 $ 64,909,618 Total $ 7,899,196 7,904,844 7,897,268 7,901,076 7,905,594 39,472,031 39,435,680 39,376,392 38,815,799 10,021,738 $ 206,629,618 Events of Default and Acceleration Clauses Generally, the Corporation is considered to be in default if the Corporation fails to pay the principal of and interest on the outstanding long-term debt when become due and payable. If an event of default has occurred and is continuing, the principal of the long-term debt, together with the accrued interest, may be declared due and payable immediately. Item 13 Page 21 Packet Page 391 of 582 14 ITEM 14 City Council Staff Report From: City Manager CITY O F Report Type: ACTION ITEMS PALO Lead Department: Fire ALTO Meeting Date: February 10, 2025 Report #:2411-3770 TITLE PUBLIC HEARING: Objections to Weed Abatement at Affected Properties and Approval of Affected Property List for Commencing Weed Abatement in 2025; CEQA status - exempt RECOMMENDATION Staff recommends that Council: 1. Adopt a determination that weed abatement activities in 2025, as described in Resolution 10201 (Attachment A) adopted by Council on December 2, 2024, are exempt under Class 8 (CEQA Guidelines section 15308); 2. Hold a Public Hearing to hear and consider any objections to the proposed destruction and removal of weeds in 2025 at the properties listed in Attachment B; and 3. Approve the final list of affected properties for weed abatement in 2025 (Attachment B) following the public hearing, and direct weed abatement activities to commence at those properties in accordance with Resolution 10201. EXECUTIVE SUMMARY The City of Palo Alto contracts with the Santa Clara County Department of Agriculture and Environmental Management to remove and destroy weeds, as defined in Palo Alto Municipal Code Chapter 8.08. This hearing allows all property owners affected and listed on the County's 2024 Weed Abatement Program Commencement Report (Attachment B) to be heard and have their objections and comments considered by the Council before the Council finalizes the list of properties ordered to abate weed nuisances in the City in 2025, under Resolution 10201. Item 14 Page 1 Packet Page 392 of 582 ITEM 14 An overview of the program and annual calendar for the steps involving City Council action is provided in Attachment C. BACKGROUND The Council adopted Resolution 10201 on December 2, 2024, which declared weeds to be a nuisance and ordered the abatement of that nuisance as called for in Palo Alto Municipal Code Chapter 8.08 (Attachment A). Resolution 10201 provided for a public hearing date of February 10, 2025, and required notice to interested property owners and the public. ANALYSIS The Santa Clara County Department of Agriculture and Resource Management maintains the contract to abate weeds within the City of Palo Alto. Following City Council's December 2, 2024 adoption of Resolution 10201 declaring weeds to be a nuisance and ordering abatement thereof in 2025, the Department of Agriculture and Resource Management took steps to notify each affected property owner by mail of the proposed weed abatement action on their respective properties, and posted, on the public notice bulletin board, a list of the properties affected. The Department of Agriculture and Resource Management has furnished copies of the property listing to the City Clerk and the City Fire Marshal. The City Clerk also posted and published notice of the hearing as required. At this public hearing, property owners may appear and object to the proposed weed destruction or removal. After the hearing and consideration of any objections, the Council may sustain or overrule any or all objections. The Council may remove properties from the weed abatement commencement report if objections are sustained. After finalizing the affected property list at the public hearing (Attachment B), the County will be asked to perform the abatement work to destroy and remove any weeds. FISCAL/RESOURCE IMPACT All charges for the weed abatement services are included as a special assessment on bills for property taxes levied against the respective lots and parcels of land, which are considered liens on these properties STAKEHOLDER ENGAGEMENT The Council adopted Resolution 10201 on December 2, 2024, declaring weeds to be a nuisance and ordering the abatement of that nuisance as called in Palo Alto Municipal Code Chapter 8.08. The Commencement Report was posted publicly in Palo Alto on at least 10 days prior to the hearing date. The notices for the City Council's February 10, 2025, public hearing ran in the newspaper at least 10 days prior to the hearing and the Santa Clara County Agriculture and Resource Management Item 14 Page 2 Packet Page 393 of 582 ITEM 14 weed abatement program mailed out notice of the public hearing to all addresses on the commencement list on January 3, 2025. ENVIRONMENTAL REVIEW Santa Clara County has determined the Weed Abatement Program be Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA guidelines Section 15308 (Class 8: Actions by Regulatory Agencies for Protection of the Environment). ATTACHMENTS Attachment A: Resolution 10201 Attachment B: 2025 Palo Alto Weed Abatement Program Commencement Report Attachment C: Weed Abatement Timeline and Summary APPROVED BY: Geoffrey Blackshire, Fire Chief Item 14 Page 3 Packet Page 394 of 582 Docusign Envelope ID: 6EBF6AA7-6F44-47DD-9EE2-6A5070FE995D ITEM 14 Attachment A Resolution No. 10201 Resolution of Intention of the Council of the City of Palo Alto Declaring Weeds to be a Nuisance and Setting February 10, 2025 for a Public Hearing for Objections to Proposed Weed Abatement RECITALS A. Weeds, as defined in Section 8.08.010(b) of the Palo Alto Municipal Code, are anticipated to develop during calendar year 2025 upon streets, alleys, sidewalks, and parcels of private property within the City of Palo Alto sufficient to constitute a public nuisance as a fire menace when dry or are otherwise combustible, or otherwise to constitute a menace to the public health as noxious or dangerous. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. Weeds, as defined in Section 8.08.010(b) of the Palo Alto Municipal Code, which are anticipated to develop during calendar year 2025 upon streets, alleys, sidewalks, and parcels of private property within the City of Palo Alto, are hereby found and determined to constitute a public nuisance. Such nuisance is anticipated to exist upon some of the streets, alleys, sidewalks, and parcels of private property within the City, which are shown, described, and delineated on the several maps of the properties in said City which are recorded in the Office of the County Recorder of the County of Santa Clara, reference in each instance for the description of any particular street, alley, or parcel of private property being hereby made to the several maps aforesaid, and, in the event of there being several subdivision maps on which the same lots are shown, reference is hereby made to the latest subdivision map. SECTION 2. THEREFORE, IT IS ORDERED that the said public nuisance be abated in the manner provided by Chapter 8.08 of the Palo Alto Municipal Code: i. IT IS FURTHER ORDERED that a public hearing shall be held on the 10th day of February 2025, at the hour of 5 pm, or as soon thereafter as the matter may be heard, at the Council Chambers of the Civic Center of said City, at which the Council shall hear objections to the proposed weed abatement of such weeds and give any objections due consideration; ii. IT IS FURTHER ORDERED that the Fire Chief of the City of Palo Alto is directed to give notice of the public hearing in the time, manner and form provided in Chapter 8.08 of the Palo Alto Municipal Code. 027112024 Item 141Page 4 Packet Page 395 of 582 Docusign Envelope ID: 6EBF6AA7-6F44-47DD-9EE2-6A5070FE995D ITEM 14 Attachment A SECTION 3. Unless the nuisance is abated without delay by the destruction and removal of such weeds, the work of abating such nuisance will be done by the County of Santa Clara Department of Agriculture and Environmental Management Office on behalf of the City of Palo Alto, and the expenses thereof assessed upon the lots and lands from which, and/or in the front and rear of which, such weeds shall have been destroyed and removed. SECTION 4. The City Council of Palo Alto adopts the determination of Santa Clara County, as the lead agency, that the Weed Abatement Program is categorically exempt from the provisions of the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines section 15308. INTRODUCED AND PASSED: DECEMBER 2, 2024 AYES: BURT, KOU, LAUING, LYTHCOTT-HAIMS, STONE, TANAKA, VEENKER NOES: ABSENT: ABSTENTIONS: ATTEST: DocuSigned by: bb -s$ss City Clerk APPROVED AS TO FORM: Signed by: mein. Bti Assistant City Attorney Signed by: L sfo�n - Mayor APPROVED: DocuSigned by: S F2uLM ... City Manager Signed by: Cl 5DCECS05BD4C7.. Fire Chief DocuSigned by: Director of Administrative Services 027112024 Item 14ZPage 5 Packet Page 396 of 582 ITEM 14 Attacl OdOcuslgn_ Certificate Of Completion Envelope Id: 6EBF6AA7-6F44-47DD-9EE2-6A5070FE995D Subject: Resolution 10201 - Declaring Weeds a Public Nuisance Source Envelope: Document Pages: 2 Signatures: 6 Certificate Pages: 2 Initials: 0 AutoNav: Enabled Envelopeld Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) Record Tracking Status: Completed Envelope Originator: Christine Prior 250 Hamilton Ave Palo Alto, CA 94301 Christine.Prior@CityofPaloAlto.org IP Address: 199.33.32.254 Status: Original Holder: Christine Prior Location: DocuSign 12/9/2024 4:44:25 PM Christine.Prior@CityofPaloAlto.org Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Aylin Bilir by. Sent: 12/9/2024 4:46:25 PM Aylin.Bilir@CityofPaloAlto.org [Sign,l 6e"''B"e"L Viewed: 12/9/2024 4:48:29 PM Assistant Cit Attorne Y Y D0E86E7C83E64AD... Signed: 12/9/2024 4:48:51 PM 9 Security Level: Email, Account Authentication (None) Signature Adoption: Pre -selected Style Using IP Address: 108.211.178.63 Electronic Record and Signature Disclosure: Not Offered via DocuSign Lauren Lai [D­Si,",d by: Sent: 12/9/2024 4:48:52 PM Lauren.Lai@CityofPaloAlto.org Viewed: 12/10/2024 3:02:57 PM Director Administrative Services/CFO 66236E5C20284BC Signed: 12/10/2024 3:03:11 PM COPA Signature Adoption: Drawn on Device Security Level: Email, Account Authentication (None) Using IP Address: 199.33.32.254 Electronic Record and Signature Disclosure: Not Offered via DocuSign b Geo Blackshire [Sig-dy: Sent: 12/10/2024 3:03:12 PM Geo.Blackshire@cityofpaloalto.org L CL S(kAm Viewed: 12/18/2024 6:48:09 AM Fire Chief C15DCEC865BD4C7 Signed: 12/18/2024 6:48:18 AM Security Level: Email, Account Authentication (None) Signature Adoption: Pre -selected Style Using IP Address: 199.33.32.254 Electronic Record and Signature Disclosure: Not Offered via DocuSign Ed Shikada by. Sent: 12/18/2024 6:48:20 AM Ed.Shikada@CityofPaloAlto.org [D-USig"Id `"`'` Viewed: 12/19/2024 10:28:43 AM Ed Shikada F2DCA19CCCBD4Fg.. Signed: 12/19/2024 10:28:49 AM City of Palo Alto Security Level: Email, Account Authentication i S gnature Adoption: Pre -selected Style (None) Using IP Address: 199.33.32.254 Electronic Record and Signature Disclosure: Not Offered via DocuSign Item 14 Page 6 Packet Page 397 of 582 Signer Events Signature Timestamp Attachment A Greer Stone (- SWned by. Sent: 12/19/2024 10:28:51 AM Greer.Stone@CityofPaloAlto.org Viewed: 12/19/2024 2:06:23 PM Vice Mayor n47e3n2A9C49D Signed: 12/19/2024 2:06:32 PM Security Level: Email, Account Authentication (None) Signature Adoption: Pre -selected Style Using IP Address: 76.102.130.41 Electronic Record and Signature Disclosure: Not Offered via DocuSign by: Mahealani Ah Yun/I Sent: 12/19/2024 2:06:33 PM [D*,uSi,n,d Mahealani.AhYun@CityofPaloAlto.org /& qL" Viewed: 12/20/2024 10:21:52 AM City Clerk 86910E5898F6499 Signed: 12/20/2024 10:22:08 AM Security Level: Email, Account Authentication (None) Signature Adoption: Pre -selected Style Using IP Address: 76.132.2.224 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 12/9/2024 4:46:26 PM Certified Delivered Security Checked 12/20/2024 10:21:52 AM Signing Complete Security Checked 12/20/2024 10:22:08 AM Completed Security Checked 12/20/2024 10:22:08 AM Payment Events Status Timestamps Item 14 Page 7 Packet Page 398 of 582 • i v v v v v v v v v v v v v v v r r v v v v v v (0 00000000000000000000000 O O O O O O O O O O O O O O O O O O O O O O O CD W W W CD CD CD W W W C0 C0 C0 W t0 t0 t0 t0 t0 t0 t0 t0 t0 N �, N M o �, ITEM 14 O M M W) N O W) O O M N M W) X O O - 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O 4- 0 Cl) 0 C) w v v v v v v v v v v v v v v v v v v v v v v v r Lc7 O O O O O O O O O O O O O O O O O O O O O O O O CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD CD M M N 01 01 W) C1 O M N N 00 I - M ITEM — 14 ( M O V) V) in 00 N M N — — x 00 00 V7 — 00 00 00 C 00 00 C1 M M M /R'«ackeN e t B w N N N N N N O N N N M CO CD cD M CO O N CD C1 CO CO N CD CD V) CD V) C) C) CD CD N C) C) M C) C) C) M C) O C O o 00 0 o L/) o t C) C) o o N C) M M — M M M 00 M M M M M V7 M M V) N O M M M M O M C1 C1 C1 C1 CN CN N CC CC C1 CC CC CC1 C1 C\ CC C1 C1 all all all CC CC o o 000 000000 000000O O O v0 O H H H W H H H H H H H H H H W a H H H H OH a s Z a a a Z a a ¢Zi a a a a W�Z a a a arID a U a arID 0 a arID a a a a a a a H U o U H 00 z O W H d J O J J J d 0 Z Z vW' Z O o zQz AWA vF"i Z p Oa" W Q O O rw O N d d x O w U H a Q zz d O a a d O d vUi O OU Z OU o a 00 M 01 \D V'1 C) M _ 00 Z LPL Q LU Lp 00 O V) It 00 .- ( O .- 00 M .- .- M M O .-N N - N W M M - M - - N V) Gy M M M \D M M M N - N N - H W Q d H 0 Q a z U Q Z O w w Q wUH oW� x H UZ 00 ti Hr ¢� W U W ad W w N H U Z Z H a a < O x d d a q N V d Q Z a O E d W N z g Z N o U d a a a O O Q x a 3 H x d N a d W x a d O 2 ti d W Z d C7 C7 J a x a C7 a u Q H E d H U C7 0.1 N (� 0.1 1 U - LO O N N LO N- M N It I- 00 M In M 0) It 't CON- 1- CO CO 00 CO LO U) — N N M It 00 M M C N M LO M N M M It - M N CC) O O O O O O O O O O O O O O O O O O O O O LO CD LO LO LO CO d) 6) O M 00 - - N M M M LO CO - N d M M M M M M M M M M M i i 17 O O O O O O O O N N N N N N N N N N N N N N N- N- N- N- N- N- N- N- N- M M M M M M M M M M Cl) Cl) M M M M M M M M M M M M w w W d d d d d d d d FG c d vii d d 0 0 0 0 W O dz 0 0 0 0 0 O W W Z W O O a a a w w a ¢ C U O O Z U w a V) Vl V) N C M N M N LU V1 00 M N O \D O - M V7 V7 V7 - VU 01 M M M N N 00 (IDN O C 01 v� M M M N It ° N N hem # P6ie 1 N N NPa�cet age 44,, of%82 0) O N M LO (0 ti CO C) O N M V LL7 Co I- CO C) O N "t LO LU LO LO LO LO LO LO LO LO Co CO Co Co Co M Cfl Cfl CO CO N- N- I- E F - C) 4- 0 Cl) 0 C.) N F-- L x w C� I — O w a a O Z w J W Z O w Q2a WLJ Q U O w W H W U O U N O N U 1 1 MM 1 U 10000- UMMMrr0001 N O (0 t0 0 0 (0 O (0 O O O 0 0 0 O O O 0 0 0 O O t0 0 (0 O 0 CD CD O CD O CD CD CD COCOCOCD CD t0 t0 t0 t0 t0 (0 O t0 ITEM 14 a1 — OOC a1 — — N N 00 00 O in O O N N N 't-- N N N M M N — — — — — - - -- 00 00 Attachment B \O 0 N — V) V) M — C O 'C 'C O O 'C — 'C O O N O O N 'C '1) O O O O O O O O O O O N O M O — M O O O M M M M M O M M M M M O O M O M 01 01 01 01 0) 0) 0) 01 01 01 01 01 01 01 01 0\ 01 01 0) 0\ 0\ 0\ 01 01 ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ ¢ U U U U U U U U U U U U U U U U U U U U U U U U a w w w OOz ¢ p> U 0 0 0 0 0 0 0 0 0 0 0 a 0 z r�� Qp H H H H E- H H E- H H H W H 00 w w�-, O HO 0 0 0 0 0 0 0 0 0 0 0 a a 00 a a a a a a a a a a M N HHH W w U U U w o 00zzz 00 0 0 o Q o w w Q¢¢¢¢¢ w z x w¢ Q Q Q a w w w o FG H Z a FG 00 'C N 'C IC C)00 H Pa -� 00 ¢ O O to) O O O - M O It to) 00 M 0) O� W 0 N 00 'C O V) �--i M N N N N N It M M M M M N N - -� N l \O N M - V) 'C 'C - - 00 V) w Q Q d a W W W x W H Q C H Ex [�- Q - - - - a 0 Cn a C z o z x Q a U w w w w w > Q Q x a 00<z z z Q ox Q ¢ E W W W W W x O Z ZUU W ¢ ¢ W a a a a w a Z W W ti CeO N N It O O N 'T (ON I- CO O M 't C0 00 CO M LO (ON- M CO - M LC) C0 C0 CO C0 O M M CO - - - N - (ON N M LO N- O r O O 00 O O O O O 00 O O O O O O O O O O O M Cl) 4 CO CO CO CO CO N M M M M N N N N Co CO - - - NC) r r N - - - - - 00000 - - - - 000000 N N- N- N- N N N N N CO CO CO CO CO CO CO CO CO N- N- Lo Lo Lo Lo Lo M M M qt It qt qt It Co CO I- I- I- N- I,- r r r r r r9 'rn] r9 r r r r r r r r r r9 r9 r r r r r UUU U U W W ¢ ¢ ¢ U CL z z z w o W w w w¢ 0 0 0 w w w U U U a a a 0 0 0 U U w x x a a a a w W W x Q Q Q Q Q Q a 00 00 00 ii 00 O C/O T 'C C) C) V) C) 00 A0 N 'C 00 IO O 00 0) 0) M M - 00 - \0 V') 01 O O O M O M 't If) 00 M 01 N `:. d\ O --i O V") N N M M M M M N 00 N N e,) en enm ` 3 P�e 1 ) -t -t 4 �cPaEket 'agg 404 Of�82 E 0 a E 0 U U N. 0 4- 0 N O C) to 0) M T Lf) (0 N- Co 0) O N M 't LO CO I- Co 0) O N M LO CO I,- N- N- N- I` N- N- CO CO CO 00 O O CO CO CO 00 O) O) 0) 0) 0) O) O) i O O O O O O O O O O O (O(O (O(O(O(O(O(O (O(O(O x w CD O� a a O Z w J W Z O w Q2a WLJ Q U O w w H w U O N O N N O O N N N N N M M M M M O N O O O O O O O 00 N U U U U U U U U Z U U z O 000 0000 0 000 0000 HO Z d O d d d d d d U z Q a a W a o O O o a a W a S O O1 to O1 O M "O —i O — N O — �O 'r U 0O \O M M M c1 a1 — O1 h H H Q in w ¢ w w Q H Uw w w a a w w z > x H x a w w � W , O p O p O W W N N U) O Ln 't OO (ON M (0 0) O — M N M O O Cc — — O O O CCC O i I I I i i i I 4 I i O O O O Ln M M O7 N N N N M 17 17 17 L() U) Ln Ln LO LO LO N N N N N N N N- I- I- ti (0 (0 M CO CO CO CO n 5 Q x Ca g Q Q Q Q r� z z z z z OOO a a a a a o Q Q Q w w O O 0O If O MM — O — 00 — rn Item 14 Page 12 0O O C 0 N 0 0 0 0 0 O) M O) ITEM 14 Attachment B Packet Page 403 of 582 E O a E O U N- 0 4- O N 0 a) N- 0 ITEM 14 Attachment C Attachment C City of Palo Alto Weed Abatement The City of Palo Alto contracts with the Santa Clara County Department of Agriculture and Environmental Management (SCCDAEM) to remove and destroy weeds in its efforts to mitigate potential fire hazards (as defined in Palo Alto Municipal Code Chapter 8.08). The entire weed abatement program is coordinated by the SCCDAEM. Abatement proceedings must follow a legally established course. This is an annual process with weed abatement occurring in late Spring. City of Palo Alto involvement is limited to the following three steps for City Council: 1) (Nov -Dec) Palo Alto City Council adopts a resolution declaring weeds a nuisance to allow for County abatement efforts and setting a later date (Jan -Feb) for a public hearing to review the Annual Commencement Report (list of local "nuisance" parcels prepared by County). 2) (Jan -Feb) City Council holds a public hearing to review the Annual Commencement Report and approve the County abatement proceedings. At this public hearing, property owners may appear and object to the proposed weed destruction or removal. After the hearing and consideration of any objections, the Council may sustain or overrule any or all objections. Upon Council adoption of the final weed abatement commencement report, the County will be asked to perform the abatement work to destroy and remove any weeds. 3) (June) City Council holds a public hearing to hear any objections from affected property owners before approving the assessments for the abatement work performed by the SCCDAEM. The Santa Clara County Weed Abatement Program The Santa Clara County Department of Agriculture and Environmental Management and the City of Palo Alto work together to protect our community from fire. The purpose of the Weed Abatement Program is to prevent fire hazards posed by vegetative overgrowth and the accumulation of combustible materials. Typically, a property is placed on the program list by a County Weed Abatement Inspector who identifies a potential fire hazard on the property. The Palo Alto Fire Department (PAFD) & Code Enforcement also report addresses of concern and forward (verified) complaints from residents to the SCCDAEM. Residents can report addresses of concern to PAFD, Code Enforcement, or directly to the County Weed Abatement Program. The County issues the final property list for the Annual Commencement Report. Santa Clara County program staff annually inspect "nuisance" parcels at the beginning of the fire season, which is typically April 30th for CPA parcels. The Weed Abatement program is entirely funded from fees charged to residents. All parcels on the list will be charged a basic inspection fee. If the parcel is not in compliance at the time of inspection, the property owner will be charged an additional failed inspection fee, and they will receive a final courtesy notice as a reminder to abate their weeds within two weeks. If the weeds are not abated by the property owner, the work will be completed by the County contractor. The property owner will be assessed for the contractor's fees plus a County administrative fee. All fees will be included in the parcel's property tax bill. Properties that meet and maintain the minimum fire safety standards will only be charged for the annual inspection fee. These properties will be removed from the list after three years of compliance. Item 14 Page 13 Packet Page 404 of 582 ITEM 15 City Council Staff Report From: City Manager CITY O F Report Type: ACTION ITEMS PALO Lead Department: Planning and Development Services ALTO Meeting Date: February 10, 2025 Report #:2412-3928 TITLE PUBLIC HEARING / QUASI-JUDICIAL. 3265 El Camino Real [24PLN-00012]: Approval of an Ordinance Rezoning the Subject Parcel From Commercial Services (CS) to Planned Community Zoning (PC) and Adoption of a Record of Land Use Action to Construct a 100% Affordable, Five - Story, 55 Unit Residential Rental Project. Environmental Assessment: Initial Study/15183 Streamlined CEQA Review. RECOMMENDATION Staff Recommends the City Council take the following actions: 1. Consider the Initial Study Checklist/Streamlined Environmental Review prepared -in accordance with California Environmental Quality Act (CEQA) Guidelines Section 15183; 2. Adopt the Ordinance in Attachment B amending the zone district from CS to PC; and 3. Approve the Record of Land Use Action in Attachment C. EXECUTIVE SUMMARY The applicant proposes to rezone the vacant parcel located at 3265 El Camino Real (Attachment A) from Commercial Services (CS) to Planned Community (PC), which is sometimes referred to as Planned Home Zoning (PHZ).' The parcel would be developed with a 100% affordable, 55 - unit residential rental project. Fourteen of the units are proposed to be dedicated at a rate affordable to low income, not to exceed 70% of area median income (AMI) levels. Forty-one of the units would be dedicated at a rate affordable to moderate income, not to exceed 110% of AMI. The applicant has also established a private agreement with the Palo Alto Educator Association (PAEA) to prioritize housing Palo Alto teachers when seeking tenants ; however, there is no guarantee that teachers will be the only occupants of the building. Staff's review of the revised project concludes that it is consistent with the findings for approval of a Planned Community rezoning. The ARB and PTC recommended approval of the project on November 21, 2024, and January 15, 2025, respectively. Accordingly, staff recommends that the Council adopt the PC/PHZ ordinance in Attachment B and approve the record of land use 1 Referred to in this report as "Planned Home Zoning" (PHZ) to emphasize the focus on housing as the benefit to the community. PAMC Section 18.38, which outlines the requirement and process for Planned Community (PC) Zoning, remains the underlying code supporting application of this policy. Item 15 Page 1 Packet Page 405 of 582 ITEM 15 action in Attachment C. The Program Statement and Development Schedule are included as Attachment H and the Development Plan is included as Attachment I. The City prepared an analysis of the project in accordance with CEQA Guidelines Section 15183, which evaluated the project's consistency with the Comprehensive Plan and the Comprehensive Plan Environmental Impact Report (EIR). The analysis concludes that the project is consistent with the previously adopted Comprehensive Plan and that the adopted EIR adequately addresses the impacts of the proposed project. BACKGROUND On February 3, 2020, Council unanimously endorsed using Planned Community (PC) Zoning for housing and mixed -use housing projects to help spur housing production and rebranded it Planned Home Zoning (PHZ). In exchange for deviation from certain standards as allowed under the rezoning, if approved by Council, the project must include at least 20% of the housing units as deed restricted for lower -income households. Moreover, the number of housing units must offset the number of net new commercial jobs that are generated by the project. The project's consistency with this Council direction is discussed further in this analysis. The applicant filed a prescreening application in 2023 to consider a zone change in accordance with Council's direction regarding PHZ projects. Council held a prescreening hearing on September 11, 2023, to consider the proposed project. Proiect Description On January 10, 2024, Trachtenberg Architects filed an application on behalf of Half Dome Capitol to rezone the subject parcel from CS to PC/PHZ and to redevelop the site with 44 residential rental units. Twenty percent of the units were proposed to be restricted at a rate affordable to low income (not to exceed 80% AMI) and 80% of the units would be restricted at a rate affordable to moderate income (not to exceed 110% AMI). After the April 10, PTC meeting, the applicant revised the submittal in response to commissioner requests for a deeper level of affordability and more units. The revised proposal is a six -story building with 55 units that is 70 feet tall to the top of the roof deck line, 79 feet tall to the elevator overrun. Twenty-five percent of the units are proposed to be restricted at a rate affordable to low income (rents based on 70% AMI) and 75% of the units are proposed to be restricted at a rate affordable to moderate income (rents based on 110% AMI). The project includes 33,089 square feet of gross floor area on a 7,493 square foot lot (floor area ratio of 4.42: 1.0). The project also includes a 1,700 square foot roof top deck and 32 total parking spaces provided in an at -grade parking garage utilizing a parking lift system. The building's exterior materials will be stucco siding, metal infill panels to frame the windows, and a painted cementitious paneling at the elevator and stairs on the side of the building which faces the Kasa Hotel and at the rear. The applicant's project description is included in Attachment H. The project plans are included in Attachment I. Item 15 Page 2 Packet Page 406 of 582 ITEM 15 Requested Entitlements, Findings and Purview: The following discretionary application is being requested: • Planned Community (PC/PHZ) Rezoning: The process for evaluating this type of application is set forth in PAMC 18.38.065. PC rezoning applications require review by the PTC and the Architectural Review Board, a final review of a development plan for review and recommendation by the PTC, and a decision by the Council. The findings under 18.38.060 must be made in the affirmative for project approval. The Architectural Review Board makes a recommendation on the development plan in accordance with the findings for architectural review in Section 18.76.020 pursuant to 18.38.065(b). These findings are included in Attachment B. For housing projects rezoning to PC (labeled "Planned Home Zoning") Council expressed an expectation that projects provide at least 20% of the units at below market rate. Council Prescreening City Council held a prescreening to evaluate the proposed rezoning of the property for a 100% affordable housing project at the subject property on September 11, 2023. At the prescreening, Councilmembers provided the following feedback (applicant responses provided): • How long do the parking stackers take to cycle through? Will tenants be leaving all at once and create a circulation issue? o 10-60 seconds depending on vehicle location; Different zones can operate individually. • How will parking be allocated? Will spaces be un-bundled with units? o Unbundled; anticipated rates are $150/space. • What is the estimated rent and will it be affordable to teachers? o See "Public Benefit" discussion below. • Is the proposed driveway wide enough to allow vehicles to move in and out? o Driveway expanded from 14 feet to 20 feet Unbundled parking is a tool that encourages alternative modes of transit to and from work by providing parking on -site as a cost, rather than for free. Coupling unbundled parking with providing a free transit pass to tenants are incentives in the proposed TDM plan to reduce vehicle trips to and from work. While the applicant has proposed unbundled parking at a rate of $150/unit for units that receive a parking stall, it is a deviation and request of the PHZ application from the City's definition of "affordable rent" under PAMC 16.65.020(d) which requires that parking be included in a tenant's rent. . However, if parking were included in each unit's rent, this would require rents to be uniformly lowered to maintain the effectiveness of unbundled parking as a tool. The applicant has noted that this would also make the project financially infeasible. Staff has concerns that applying a flat fee for unbundled parking will disproportionately impact low-income tenants. As a result, staff recommends adopting COA #14 which provides that the unbundled parking cost be capped at 4% and 5% of anticipated rent plus the utility allowance for the low-income and moderate -income units, respectively. This ratio would result in low - Item 15 Page 3 Packet Page 407 of 582 income units paying roughly $90.36 or $103.28 a month for parking, and moderate -income units paying roughly $177.40 or $202.80 a month for parking (see anticipated rents in Public Benefit section below). Either option would be a deviation from the City's current code requirements, but Council could also require the applicant include the cost for parking in rent for these units. Planning and Transportation Commission (PTC) The PTC held the first formal hearing for this project on April 10, 2024, and the second hearing on January 15, 2025. Links to the PTC staff reports, meeting minutes, and video recordings are provided in the footnote below.2 At the initial hearing Commissioners provided feedback/requested information on expanding the rooftop open space, expanding the TDM plan provisions, the affordability level of the units, and analyzing site circulation. Following the PTC and ARB's initial review, the applicant made substantive changes to the project design, which included increasing the unit count from 44 units to 55 units. The proposed floor area ratio (FAR) and height increased commensurate to the increase in units, resulting in a proposed FAR of 4.42 (previously 3.58 FAR) and height of 79 feet, 8 inches (previously 64 feet). The applicant has stated that this change allowed the project to be economically viable while addressing PTC and Council feedback to provide the units at a deeper level of affordability. On January 15, 2025, the PTC recommend approval of the project on a 3-2 vote [Chang, Summa — against]. Both Chair Chang and Commissioner Summa raised concerns that the project was not an Affordable Housing project based on the anticipated rent levels shown in the staff report for the Moderate -Income deed -restricted units and should not benefit from provisions in Title 16 that waive development impact fees for 100% Affordable Housing projects. At the hearing, the PTC made the following motion: Recommend approval of the project subject to the following additional conditions of approval: 1. Future residents shall be notified that if a future Residential Parking Permit (RPP) will be enacted, that they may be excluded from it. 2. The property manager shall provide an annual report to the City of the number of Palo Alto Unified School District employees that occupy the building and which unit types they are occupying. 2 April 10, 2024, PTC Agenda Item #2, 3265 El Camino Real: https://cityofpaloaIto.primegov.com/Portal/Meeting?meetingTemplate Id=13632 November 21, 2024 ARB Agenda Item #3, 3265 El Camino Real: https://cityofpaloaIto.primegov.com/Portal/Meeting?meetingTemplate Id=15699 Item 15 Page 4 Packet Page 408 of 582 ITEM 15 There was a robust discussion between the commissioners about whether units that are deed - restricted at a Moderate -Income level are truly below market rate or are charging rents that are comparable to market rate units based on available data. The PTC recommended that Council Item 15 Page 5 Packet Page 409 of 582 ITEM 15 could study this to inform decisions on future housing projects and the options within the PHZ process. Staff would recommend that this item be added to the PTC or Council Work Plan and prioritized to other work if the Council would like to investigate this further. The PTC also wanted to understand the length of time that these units will be deed -restricted for and when that will be decided as it is not explicitly captured in draft Condition of Approval #14. During the discussion, staff noted that PAMC 16.65.075 requires that all affordable units be deed restricted to 99 -years or a 55 -year timeframe, when required by tax credit financing, and that those timeframes are typically negotiated by staff through the regulatory agreement after the project is approved. It is important to note that PAMC 16.65.075 applies to the City's inclusionary housing requirements for ownership projects and that rental projects do not have an inclusionary housing requirement. Other 100% affordable housing projects have been deed restricted to a 55 -year timeframe to maintain tax credit financing and staff recommends these units be similarly restricted given that the project is not receiving public subsidy. Draft Condition of Approval (COA) #14 has been updated to capture this recommendation. Architectural Review Board The ARB reviewed the project on April 18, 2024 and suggested improvements to the design related to the front and rear stucco facades, window placement towards Kasa Hotel, privacy screening between patios at level 2, expanding the rooftop deck, recessing the garage door, including an interior door to the garage from the lobby, and introducing a skylight over the bike area at the rear of the building. On November 1, 2024, the ARB reviewed the revised design and recommended approval of the project on a 4-1 vote [Baltay — against]. Board member Baltay was concerned that the design of the units and open space were substandard and inappropriate to expect residents to occupy given the physical limitations of the site and the density proposed. At the hearing, the ARB made the following motion: Recommend approval of the project with the following additional conditions of approval: 1. Modify the facade at the stairwells to introduce natural light. 2. Modify the rear wall to introduce natural light into the bike storage room. 3. Include auditory/visual warnings at garage door when opening. 4. Consider a schedule for garage door operation (e.g. open certain hours) 5. Return to the ARB Ad -Hoc to evaluate the painted cementitious panel along the stairwells a. Provide a detail showing how the articulation will be handled; consider using different colors/materials to create shadow and depth on the facade. b. Provide detail which shows the vertical transition between boards 6. Remove the requirement to recess the garage door from COA #28; Require that the door must open in less than 10 seconds to ensure efficient access to the site from El Camino Real. Item 15 Page 6 Packet Page 410 of 582 Except for COA #5a and 5b above, all other conditions were provided to be addressed at the building permit stage. Following Council approval of the project, staff will return to the ARB Ad - Hoc Committee to resolve COA #5a and 5b. lel01/e1�'&IW Comprehensive Plan, Area Plans, and Guidelines Compliance The Comprehensive Plan land use designation for the project site is Service Commercial, which allows for higher density multi -family near transit. The proposed project is located along El Camino Real, which is considered a high -quality transit corridor. Therefore, the proposed use is consistent with this land use designation. The project is also consistent with the policies set forth in the Comprehensive Plan, as detailed in Attachment C. Housing Element This site is included as a Housing Inventory Site in the adopted Housing Element, with an anticipated capacity of 44 units that may be provided at market rate. The project proposes 55 units, all of which would be below market rate, provided at a rate affordable to low income (70%) or moderate income (110%). Therefore, the project is consistent with the Housing Element and contributes to the City's Regional Housing Needs Allocation (RHNA) goals, including goals to increase the number of units provided at below market rate levels. North Ventura Coordinated Area Plan The proposed development is located within the boundaries of the North Ventura Coordinated Area Plan (NVCAP). Therefore, the land use designation and the zoning of the site has changed since the application was first filed. However, as detailed in the ordinance implementing the NVCAP, projects that have been deemed complete prior to the effective date of the ordinance, would not be subject to the NVCAP goals and policies or the zoning regulations set forth in the ordinance. This project was deemed complete prior to adoption of the NVCAP and therefore continues to be analyzed in accordance with the regulations set forth under the existing zoning and land use designation. Nevertheless, the proposed land use designation under NVCAP is High -Density Mixed -Use. This land use designation is "intended to support five -to -six story mid - rise apartment buildings." This designation requires active uses for ground floor frontages. As detailed in NVCAP, active uses include building lobbies. Therefore, the project is also consistent with the land use designation under the NVCAP. El Camino/South El Camino Real Design Guidelines3 The project is subject to both the El Camino Real and the South El Camino Real Design Guidelines. As detailed in Attachment F, the project is consistent with these guidelines. 3 South El Camino Real Design Guidelines: chrome: www.cityofpaloalto.org/files/assets/public/v/1/planning-amp- development-services/file-migration/current-planning/forms-and-guidelines/south-el-Camino-real-design- guidelines.pdf Item 15 Page 7 Packet Page 411 of 582 ITEM 15 Zoning Compliance For a PHZ project, the zoning development standards are customized for the building/site. Therefore, this project would deviate from the zoning development standards in a manner that is consistent with the zoning ordinance through to rezoning process. However, as detailed in the Zoning Comparison Table (Attachment D), there are several aspects of the project that exceed the underlying Service Commercial (CS) zoning district development standards, including: • Floor Area Ratio: 4.42:1.0 where 0.6:1.0 FAR is permitted; • Lot Coverage Ratio: 0.87:1.0 where 0.5:1.0 is permitted; • Height: 79 feet, 8 inches where 50 feet is permitted; • Parking: 32 parking stalls where 55 are required; • Rear Yard Setback: 0-5 feet where 10 feet is required; • Minimum Landscape/Open Space per Unit: 31 square feet where 150 square feet is required; • Rooftop Open Space: Rooftop garden provides 76% of open space for project where only 60% is permitted to be provided by rooftop garden; • Bike Parking: Four short-term bike parking spaces are provided off -site where six are required on -site; • Vehicle Loading Space: No short-term vehicle loading space is provided on site where one is required for projects with 50 or more units. Given that the project is 100% affordable, the Affordable Housing Incentive Program (AHIP) standards could also be applied to the site by -right to modify some development standards. Therefore, Attachment D also includes a comparison of the proposed development standards and the AHIP development standards for informational purposes. Multi -Modal Access & Parking The property is located on El Camino Real near the cross street of Lambert Avenue and is accessed via a right -in, right -out -only driveway entrance. The applicant proposes 32 parking spaces, or 0.5 spaces per residential unit. 30 parking spaces would be provided in vehicle stackers that would be independently accessible and two ADA parking spaces would be provided. This is an increase in the provided parking ratio from the original proposal reviewed by Council, which included 22 parking spaces in vehicle stackers for the 44 units proposed at that time. Typically, one parking space per unit is required for studio and one -bedroom units, and a Transportation Demand Management (TDM) plan can be used for an up to 100% reduction in required spaces for a 100% affordable housing project where units are available to households with income levels at or below the 120% AMI thresholds. The applicant has proposed a TDM plan for the proposed project, which is provided in Attachment E. The Office of Transportation has reviewed and approved the proposed TDM plan which includes, among 4 PAMC 18.52.040(b)(8) provides that the accessible loading zone adjacent to an accessible parking stall contributes to the number of vehicle spaces provided on site. While 32 spaces are provided, only 31 can be used to park a vehicle. Item 15 Page 8 Packet Page 412 of 582 other measures, a provision to provide free bus passes to all tenants via the Valley Transportation Authority (VTA) Smart Pass program. There are north and south -bound VTA bus stops within the immediate vicinity of the site that connect the site to other regional transit options like Caltrain. Conditions of Approval #30 and #31 require monitoring of the parking lift system and TDM program to ensure they are effective. If any deficiencies are found within the annual monitoring reports, penalties or modifications to the programs can be enacted to ensure the lift system works and the TDM plan goals are achieved. Fifty-five long-term bike parking spaces are proposed on the ground floor in a shared storage room, four short-term bike parking stalls are provided along El Camino Real, and five on -site shared electric bikes are provided in the storage room. Based on the nature of the puzzle lift system, vehicle stalls are shuffled around using the wall kiosk in the garage or a remote key fob until a stall is moved to the ground level for a vehicle to exit from or pull into the space. For the puzzle lift system to function properly, some stalls need to be left unused. In this case, two stalls will be left unused resulting in 30 of the 32 parking lift stalls being usable within the garage. The City's traffic consultant Fehr & Peers analyzed the vehicle turning radii for the proposed parking lift stalls as detailed in the transportation analysis in Attachment I. Given that all stalls comply with the size requirements set forth in Chapter 18.54, in accordance with the conditions of approval that require proper management of the system, the proposed design is consistent with the City's requirements. Caltrans is currently developing El Camino Real along the project frontage to add a bicycle lane. This eliminates the potential for a vehicle loading area as well as a trash loading area (e.g. for trash pickup) along El Camino Real in front of the property. Therefore, vehicle pick-up and drop- off as well as trash pickup for the project are anticipated to occur on Lambert Avenue. Bins will be brought out to Lambert Avenue and staged there by the property management prior to pick- up, then moved back to the trash enclosure following pick-up. Public Benefit As noted in the background section of this report, in February 2020 Council provided direction to staff to consider planned community rezoning applications for housing development projects that provide increased inclusionary below market rate units, rebranding these as Planned Home Zoning projects to emphasis the increased BMR units and/or affordability level of those units as the public benefit of the project. As a part of Council's direction, a menu of options was identified as possible ways to meet the increased affordability requirements. Using Option #2, the weighted system, as shown below, the project is proposing an equivalency of 75% affordable units, exceeding the 20% minimum requirement in accordance with Council's direction, as noted in Table 1 below. Since no commercial component is proposed, this project would inherently create more housing than jobs. Item 15 Page 9 Packet Page 413 of 582 ITEM 15 Table 2: 20% Weighted Value Income Level Area Median Income Weighted Value Below Market Rate Units Very -low Income 31-50% 1.9 Low Income 51%-80% 1.2 Moderate Income 81%-120% .6 Workforce Housing Above Moderate Income 121% - 140% .3 Market Rate Above Moderate Income 141% and above 0 Several Council members and commissioners raised concerns that these units would not be affordable to the target demographic the applicant has committed to serving and requested additional information from staff about affordability levels and teacher salaries. The California Department of Housing and Community Development (HCD) provides yearly data on the AMI limits for each income category, which varies based on the number of individuals in each household. The image below reflects the AMI for Santa Clara County for 2024:5 I Number of Persons in Household:I 1 2 3 4 5 6 7 8 Santa Clara County Area Median Income: Acutely Low 19350 22100 24900 27650 29850 32050 34300 36500 Extremely Low 38750 44250 49800 55300 59750 64150 68600 73000 Very Low Income 64550 73750 82950 92150 99550 106900 114300 121650 $184,300 Low Income 102300 116900 131500 146100 157800 169500 181200 192900 Median Income 129000 147450 165850 184300 199050 213800 228550 243300 Moderate Income 154800 176900 199050 221150 238850 256550 274250 291900 An image of the 2024-25 Palo Alto Unified School District (PAUSD) salary schedule is below:6 5 HCD Income Table: https://www.hcd.ca.gov/sites/default/files/docs/grants-and-funding/income-limits-2024.pdf 6 PAUSD Salary Schedule: https://resources.finalsite.net/images/v1717104008/pausdorg/r4v8geOe5lnle3szo8zw/salary schedule teachers 202425.pdf Item 15 Page 10 Packet Page 414 of 582 ITEM 15 Palo Alto Unified School District TEACHERS' 2024-25 SALARY SCHEDULE 1 91,546 96,201 .is 100703 104,754 •. 108,429 2 91,546 96,201 100703 104,754 108,429 3 91,546 96,201 100703 104,754 108,429 4 97,251 102,306 107147 111,388 115,259 5 101,778 107,058 112,201 116,607 120,640 6 105,947 111,528 116,973 121,512 125,623 7 111,157 116.307 121464 126,617 131767 8 115,009 120,157 125303 130,462 135,619 9 118,858 124,007 129166 134,316 139463 122,704 127,860 133,012 138,160 143,319 11 122,704 127,860 136,989 142,248 147,161 12 122,704 127,860 136989 142,248 147,161 13 126,526 131,683 140,811 146,070 150,984 14 126,526 131,683 140,811 146,070 150,984 16 126,526 131,683 140,811 146,070 150,984 16 130,349 135,505 144,634 149,891 154,806 17 130,349 135,505 144,634 149,891 154,806 18 130,349 135,505 144,634 149,891 154,806 19 134,170 139,327 148,455 153,714 158,629 20 134,170 139,327 148,455 153,714 158,629 21 134,170 139,327 148,455 153,714 158,629 22 134,170 139,327 148,455 153,714 158,629 23 134,170 139,327 153,440 158,699 163,614 24 134,170 139,327 153,440 158,699 163,614 28 134,170 139,327 153440 158,699 163,614 26 134,170 139,327 153440 158,699 163,614 27 134,170 139,327 153,440 158,699 168,598 Based on the income limits, a low-income studio would be affordable to all individual salaries in the schedule and low-income 1 -bedrooms would be affordable to over 90% of individual salary levels. Most of the salary steps in the PAUSD schedule, however, are too high for an individual to income -qualify to rent these low-income units. Moderate -income studios would be affordable for 35% of individual salary levels, and moderate -income 1 -bedrooms would be affordable to 4% of individual salary levels. These figures are likely too low, however, because the PAUSD salary schedule only represents one individual's income, while many units may be occupied by households with more than one income. Even the most expensive unit in the project will be affordable to a household making 1.8 times the lowest individual salary in the PAUSD schedule, and many households may have a combined income too high to qualify for these restricted units. Item 15 Page 11 Packet Page 415 of 582 Given the sizes of each unit within the proposed project, it's likely that a two -person household would be the largest household size occupying these units. The City's Below Market Rate (BMR) administrator would be responsible for income certifying individual(s) who apply to live in these units with the additional caveat that any teachers that apply to live in these units would be considered first over other potential tenants. There is no requirement in the draft ordinance that all or any of the future tenants in the building be teachers. As noted earlier in the report, following the April PTC and ARB meetings, the developer modified their design to increase the number of units from 44 to 55. This was driven by feedback from the PTC which encouraged ways to deepen the levels of affordability for the project. By increasing the number of units in the project, the applicant has been able to commit to limiting rent for the low-income units at 70% AMI as well as limiting rents for moderate - income units at 110% AMI. Previously, the applicant noted that it was not financially feasible to limit the low-income rents at 70% AMI and had proposed limiting them to 80% AMI instead. Anticipated 2024-25 rents for each unit type are shown below, as well as the household incomes at which these units would be affordable; anticipated rents are subject to change each year. The anticipated rents below reflect the cost of rent, plus an assumed utility allowance that Santa Clara County provides for units ($210/month for studios, $220/month for one - bedrooms). Rents for each unit type and income range would be $2,049/$2,362 for 70% AMI, or $3,338/$3,836 for 110% AMI. Notably, although rents are set using assumed household sizes of 1 -person per studio and 2 -persons per 1 -bedroom, income qualification is based on actual household size. Thus, although rent plus utilities for a low-income studio may not exceed $2,259 per month, a two -person household may qualify for such studio with a household income of up to $118,000 per year (80% AMI for a two -person household). Rent + Utility Allowance Rent at 70% AMI Affordable to Annual Income Rent at 110% AMI Affordable to Annual Income Studio $2,259 $90,370 $3,548 $142,010 1 -Bed $2,582 $103,250 $4,056 $162,250 Consistency with Application Findings Staff has prepared a detailed review of the proposed project's consistency with the Findings for approval. The draft Architectural Review findings for the proposed project and draft findings for the PC ordinance are provided in Attachment C. Staff finds that the proposed project, as conditioned, meets all of the applicable findings for Architectural Review and the required determinations for PC ordinances. POLICY IMPLICATIONS Approving the proposed affordable housing project would support the city's housing goals, providing 55 units with priority for local educators while aligning with the Comprehensive Plan and making progress toward the City's RHNA targets. Redevelopment activates an underutilized site and would increase property tax revenue. However, the PTC, despite its support for the Item 15 Page 12 Packet Page 416 of 582 project, has noted concerns over affordability thresholds and the loss of revenue from development impact fees, as noted above. This project is entitled to an exemption from impact fees because it fits the City's definition of 100% affordable housing. Staff believe the rent restrictions for the moderate -income units are a meaningful benefit that are likely to be more impactful over time. In addition, this project represents an unusual model for rent -restricted housing production that does not rely on public funding or competitive tax credits. Ultimately, the subject entitlement process as a legislative application conveys broad latitude to the City Council in terms of its discretion to approve or deny the project. Not approving the project could slow progress on housing production and may discourage future, similar, affordable housing proposals and influence ongoing work related to expanding the Housing Focus Area along a strategic location on El Camino Real. Moreover, with the recent upzoning of this site through the NVCAP, a substantially similar project could likely be achieved through use of the state density bonus law. FISCAL/RESOURCE IMPACT In accordance with the adopted fee schedule, applications for zone changes are processed as Cost Recovery applications; therefore, the City recovers the cost of staff time for processing the application. Additionally, because this is a 100% affordable housing development, no impact fees are required. The property is currently undeveloped; accordingly, the current site does not generate any revenue for the City. Therefore, there is no financial impact as a result of processing of this application except that property taxes would increase as a result of the development, once constructed. STAKEHOLDER ENGAGEMENT The Palo Alto Municipal Code requires notice of this public hearing be published in a local paper and mailed to owners and occupants of property within 600 feet of the subject property at least ten days in advance. Notice of a public hearing for this project was published in the Daily Post on January 31, 2025. Postcard mailing occurred on January 29, 2025. Public Comments As of the writing of this report, the City received one comment from the property owner for 3295 El Camino Real, which is provided in Attachment G. At a follow up meeting with staff and the applicant, the neighboring property owners asked for further clarity as to how their site would be protected during construction and afterwards for any regular maintenance needs, as well as understand whether any shoring or maintenance easements would be necessary between the two properties. The applicant noted that they designed the project to ensure that all shoring would be done within their own property boundaries and that no access or maintenance easements would be needed from the adjacent owners. Staff confirmed with the Chief Building Official that should any easements be necessary in the future; the City does not need to be party to those agreements and they can be established and recorded between the property owners at their own expense outside of the City's review process. Additional public comments in support of the project are included in Attachment G. Item 15 Page 13 Packet Page 417 of 582 ITEM 15 The City, acting as the lead agency, has analyzed the project in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA). Specifically, the City prepared an analysis of the project in accordance with CEQA Guidelines Section 15183, which evaluated the project's consistency with the Comprehensive Plan and the Comprehensive Plan Environmental Impact Report (EIR). Section 15183 allows for streamlining of infill projects where the previously adopted EIR for a Comprehensive Plan adequately addresses the impacts of the proposed project. Plan level technical reports were prepared to confirm that the Comprehensive Plan EIR, including any mitigation that would be addressed as required through that EIR, would adequately address the impacts of the proposed project. This analysis and relevant attachments are included in Attachment I. ATTACHMENTS Attachment A: Location Map Attachment B: Ordinance Attachment C: Draft Record of Land Use Attachment D: Zoning Comparison Table Attachment E: TDM Plan Attachment F: South El Camino Real Design Guidelines Comparison Attachment G: Public Comments Attachment H: Program Statement and Schedule Attachment I: Development Plan and Environmental Documents APPROVED BY: Jonathan Lait, Planning and Development Services Director Item 15 Page 14 Packet Page 418 of 582 ASS Attachment Asa Legend 0 Assessment Parcel Palo Alto Q Assessment Parcel Palo Alto O Q Assessment Parcel Outside Palo Alto A ' '> Road Centerline Small Text (TC) �� Curb Face (RF) DO ``��>,/ �� Pavement Edge (RF) °�"9 1 abc Address Label(AP) rb Current Features This map is a product of the Gty of Palo Alto GIS Attachment A Vicinity Map 3265 E1 Camino Real Palo Alto Item 15 Page 15 Packet a'9 of 58 ITEM 15 *NOT YET APPROVED* Attachment B Ordinance No. Ordinance of the Council of the City of Palo Alto Amending Section 18.08.040 of the Palo Alto Municipal Code (The Zoning Map) to Change the Classification of Property Located at 3265 El Camino Real from Service Commercial (CS) Zone to Planned Community Zone (PC) for the Construction of a 100 Percent Affordable Housing Project The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: (a) On January 10, 2024, Architect Isaiah Stackhouse, on behalf of Half Dome Capital, LLC ("Applicant") submitted an application for Rezoning to Planned Community/Planned Home Zoning (PHZ) and Major Architectural Review to redevelop the 3265 El Camino Real site (the "Subject Property") with a 100% affordable, five -story, 55 dwelling unit housing development with ground level lobby and parking garage (the "Project"). (b) Following Staff Review, the Planning and Transportation Commission (Commission) reviewed the project on April 10, 2024 and recommended the project to the Architectural Review Board. (c) The Architectural Review Board reviewed the project on April 18, 2024 and project revisions on November 21, 2024; and recommended approval of the project to the City Council. (d) The Planning and Transportation Commission reviewed the project on January 15, 2025; and recommended approval of the project to the City Council. (e) Approval of the Planned Community Project would constitute a project under the provisions of the California Environmental Quality Act of 1970, together with related state and local implementation guidelines promulgated thereunder ("CEQA"). (f) The City is the Lead Agency pursuant to Public Resources Code section 21067 as it has the principal responsibility to approve and regulate the Planned Community Project. (g) The City, in compliance with CEQA, determined that the project is eligible for streamlined review in accordance with CEQA Guidelines Section 15183. The City prepared an analysis of the project in accordance with CEQA Guidelines Section 15183, which evaluated the project's consistency with the Comprehensive Plan and the Comprehensive Plan EIR, including relevant addenda. Plan level technical reports were prepared to confirm that the Comprehensive Plan EIR, including any mitigation required through that EIR, would adequately address the impacts of the proposed project. 0290165_kb2_20250106_ms29 Item 15 Page 16 Packet Page 420 of 582 *NOT YET APPROVED* Attachment B (h) The Council is the decision -making body for approval of the Planned Community Project. (i) The site is so situated, and the use or uses proposed for the site are of such characteristics that the application of general districts or combining districts will not provide sufficient flexibility to allow the proposed development. Specifically, the project includes a density of units that exceeds what would otherwise be permitted; in addition, the narrow and short size of the parcel precludes the site from reaching its proposed 55 -unit capacity without exceeding the standards for the CS zone district. (j) Development of the site under the provisions of the PC planned community district will result in public benefits not otherwise attainable by application of the regulations of general districts or combining districts, as set forth in Section 6 of this ordinance. (k) The use or uses permitted, and the site development regulations applicable within the district are consistent with the Palo Alto Comprehensive plan and compatible with existing and potential uses on adjoining sites or within the general vicinity, as set forth in the Record of Land Use Action accompanying this ordinance. SECTION 2. Amendment of Zoning Map. Section 18.08.040 of the Palo Alto Municipal Code, the "Zoning Map," is hereby amended by changing the zoning of Subject Property from Service Commercial (CS) to "Planned Community Zone (PC) ". SECTION 3. Project Description. The Project as a whole is described in the Development Plan, titled "3265 El Camino Real" and uploaded to the Palo Alto Online Permitting Services Citizen Portal on October 11, 2024. With respect to the Subject Property, the project comprises the uses included in this Ordinance, depicted on the Development Plans, incorporated by reference, including the following components: (a) Redevelopment of an undeveloped site, as described in more detail in the Development Plan, to facilitate the construction of a five -story, 55 -unit residential rental project with ground level lobby and parking garage. 100% of the apartment units would be deed - restricted, affordable units, with 14 units affordable to low income households and 41 units affordable to moderate income households. SECTION 4. Land Uses. (a) The following land uses shall be permitted: (1) Multi -family residential, with 25% of units affordable to low income households and 75% affordable to moderate income households; 2 0290165_kb2_20250106_ms29 Item 15 Page 17 Packet Page 421 of 582 ITEM 15 *NOT YET APPROVED* Attachment B (2) Accessory Uses. SECTION 5. Site Development Regulations and Development Schedule (a) Development Standards: Development standards for the Subject Property shall be those conforming to the Development Plans. (b) Parking and Loading Requirements: The Owner shall provide parking and loading as set forth in the Development Plan and Transportation Demand Management Plan, titled "3265 El Camino Real Residential Development Transportation Demand Management (TDM) Plan" and dated October 29, 2024. (c) Modifications to the Development Plan, Land Uses and Site Development Regulations: Once the project has been constructed consistent with the approved Development Plan, any modifications to the exterior design of the Development Plan or any new construction not specifically permitted by the Development Plan or the site development regulations contained in Section 5 (a) — (b) above shall require an amendment to this Planned Community zone. Any use not specifically permitted by this ordinance shall require an amendment to the PC ordinance, as required by Palo Alto Municipal Code 18.38.050. (g) Development Schedule: The project is required to include a Development Schedule pursuant to PAMC §18.38.100. The applicant has indicated that development is anticipated to begin in July 2025 and conclude in December 2026. Notwithstanding the above, construction of the project shall commence within two years of the effective date of this ordinance. Prior to expiration of this timeline, the Owner may seek a one year extension from the Director of Planning and Development Services. All construction and development of the project shall be complete within 3 years of the start of construction. SECTION 6. Public Benefits. (a) Public Benefits Development of the Project Site under the provisions of the PC Planned Community District will result in public benefits not otherwise attainable by application of the regulations of general districts or combining districts. The public benefit provided by the Project is providing a 100 percent affordable housing project including 14 units restricted to rents affordable to households at 70% of area median income (AMI) and 41 units restricted to rents affordable to households at 110% of AMI. 3 0290165kb220250106ms29 Item 15 Page 18 Packet Page 422 of 582 ITEM 15 *NOT YET APPROVED* Attachment B (b) Monitoring of Conditions and Public Benefits: Not later than three (3) years following issuance of a certificate of occupancy and at least every three (3) years thereafter, the Owner shall request that the City review the Project for compliance with the PC district regulations and the conditions of approval for the associated development. The applicant shall provide adequate funding to reimburse the City for these costs. If conditions or benefits are found deficient by staff, the applicant shall correct such conditions in not more than 90 days from notice by the City. If correction is not made within the prescribed timeframe, the Director of Planning and Development Services will schedule review of the project before the Planning and Transportation Commission and Council to determine appropriate remedies, fines or other actions. SECTION 7. Environmental Review The City prepared an analysis of the project in accordance with CEQA Guidelines Section 15183 and confirmed that the Comprehensive Plan EIR, including any mitigation that would be addressed as required through that EIR, would adequately address the impacts of the proposed project. // // // // // // // // // // // // // // // 4 0290165kb220250106ms29 Item 15 Page 19 Packet Page 423 of 582 ITEM 15 *NOT YET APPROVED* Attachment B SECTION 8. Effective Date This ordinance shall be effective on the thirty-first day after the date of its adoption (second reading). INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED AS TO FORM: City Attorney or Designee Mayor APPROVED: City Manager Director of Planning and Development Services 61 0290165_kb2_20250106_ms29 Item 15 Page 20 Packet Page 424 of 582 ITEM 15 *NOT YET APPROVED* Attachment B Exhibit A: Subject Property Plat and Legal Description Exhibit A Plat and Legal Description Forthcoming 6 0290165kb220250106ms29 Item 15 Page 21 Packet Page 425 of 582 ITEM 15 Attachment C APPROVAL NO. 2024 - RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 3265 El Camino Real: PLANNED COMMUNITY REZONING [FILE NO 24PLN-00012] On , the City Council of the City of Palo Alto ("City Council") approved a Planned Community Rezoning, making the following findings, determinations, and declarations: SECTION 1. Background. A. On January 10, 2024 Architect Isaiah Stackhouse, on behalf of Half Dome Capital, LLC. ("Applicant") applied for a Planned Community Rezoning and Comprehensive Plan Text Amendment to construct a 100% affordable, six -story, 55 dwelling unit housing development with ground level lobby and parking garage. B. The project site consists of one existing, vacant, parcel located at 3265 El Camino Real (APN 132-38-020) totaling 0.17 acres. C. On September 11, 2023 Council conducted a prescreening review of the proposed legislative actions in accordance with PAMC 18.79 D. On April 10, 2024 the Planning and Transportation Commission (PTC) held a duly noticed public hearing and recommended that the applicant submit the proposed plans to the Architectural Review Board (ARB) based on the conceptual design and proposed project in accordance with the Planned Community Rezoning process. E. Following the Planning and Transportation Commission's initial review, the ARB held a duly noticed public hearing on April 18, 2024 to provide feedback and allow for public comment on the proposed project. On November 21, 2024, the ARB held a duly noticed public hearing and recommended approval of the proposed project. F. On January 15, 2025, the PTC held a duly noticed public hearing and recommended approval of the proposed project. G. On __________,the City Council reviewed the request for a Planned Community rezoning. After hearing public testimony, the Council voted to approve/adopt: • Resolution adopting the 15183 CEQA Exemption; • Ordinance amending the zoning of the proposed resulting parcel to Planned Community ______;and • This Record of Land Use Action H. This application is subject to the conditions set forth in Section 6 of this Record of Land Use Action. SECTION 2. Environmental Review. In accordance with the California Environmental Quality Act (CEQA) the City prepared a Category 15183 Environmental Exemption ("Exemption") for the 3265 El Camino Real Housing Project to provide an assessment of the potential environmental consequences of approving and constructing the Project. The Draft Page 1 of 17 Item 15 Page 22 Packet Page 426 of 582 ITEM 15 Attachment C Exemption was published on the project webpage on . The City Council certified and made related findings by Resolution No on , prior to approval of the decision that is the subject of this RLUA. SECTION 3. PLANNED COMMUNITY FINDINGS Finding #1: The site is so situated, and the use or uses proposed for the site are of such characteristics that the application of general districts or combining districts will not provide sufficient flexibility to allow the proposed development. The project is consistent with Finding #1 because: The proposed project includes a density of units for the site that exceed what is allowed by the size of the parcel. The property is very narrow and short which limits its ability to achieve the minimum 44 -unit Housing Inventory Site capacity without exceeding many of the CS zone district requirements. Finding #2: Development of the site under the provisions of the PC planned community district will result in public benefits not otherwise attainable by application of the regulations of general districts or combining districts. In making the findings required by this section, the planning commission and city council, as appropriate, shall specifically cite the public benefits expected to result from use of the planned community district. The project is consistent with Finding #2 because: The primary public benefit for this project is additional housing units to assist the City in reaching their Regional Housing Needs Assessment goals. Under the CS zoning, the maximum development potential of this property would be 5 units, but through this PC application the project proposes 55 units. This site is currently listed as a Housing Inventory Site with an expected capacity of 44 units. The project proposes 100% of the units to be designated Below Market Rate, 25% allocated to Low Income and 75% to Moderate Income households. In addition, the owner has agreed to limit the affordable rents for the Low -Income units at 70% and the Moderate - Income units at 110% of SCC AMI, instead of the traditional City standard of 80% and 120% of Santa Clara County AMI respectively. Finding #3: The use or uses permitted, and the site development regulations applicable within the district shall be consistent with the Palo Alto Comprehensive Plan, and shall be compatible with existing and potential uses on adjoining sites or within the general vicinity. The project is consistent with Finding #3 because: The project is compatible with the Comprehensive Plan as detailed further in Section 4, Finding #1 below. The proposed uses are compatible with the surrounding neighborhood, as it is hotels, restaurants, day cares, and offices. The City has developed the North Ventura Coordinated Area Plan (NVCAP) for properties in this vicinity which will increase housing and mixed -use sites within this area. Additional care has been taken to ensure viability of the existing street tree. SECTION 4. ARCHITECTURAL REVIEW FINDINGS The design and architecture of the proposed improvements, as conditioned, complies with the Findings for Architectural Review as required in Chapter 18.76 of the PAMC. Finding #1: The design is consistent with applicable provisions of the Palo Alto Comprehensive Plan, Page 2 of 17 Item 15 Page 23 Packet Page 427 of 582 ITEM 15 Attachment C Zoning Code, coordinated area plans (including compatibility requirements), and any relevant design guides. The project is consistent with Finding #1 because: With approval of the requested Comprehensive Plan Amendment and Planned Community Rezoning in accordance with Ordinance and Resolution , the proposed project complies with the zoning code and Comprehensive Plan. The project is not located within a coordinated area plan area as the application was deemed complete prior to the adoption of NVCAP. The El Camino Real/South El Camino Real Design Guidelines apply to the project and a comparative analysis has been provided in attachment _. The proposed project is consistent with relevant goals and policies set forth in the Comprehensive Plan. Below is an analysis of the applicable goals and policies: Comp Plan Goals and Policies How project adheres or does not adhere to Comp Plan? The Comprehensive Plan land use designation for The project proposes high -density housing along the site is Service Commercial. El Camino Real, the City's high -quality transit corridor, which is an area designated for high - density housing. The site is located less than a mile from the California Avenue Caltrain station but has a Northbound/Southbound VTA bus stop within 500 feet from the Darcel. Land Use Element Policy L-1.3 Infill development in the urban The project is an urban infill development service area should be compatible with its proposal in the urban service area of the city. surroundings and the overall scale and character of the city to ensure a compact, efficient development pattern. Policy L-1.6: Encourage land uses that address The project provides 55 units to those with low the needs of the community and manage change income (50-80% of AMI) and moderate incomes and development to benefit the community. (80%-120%, restricted to no greater than 110%). The project seeks to addresses the housing crisis that the City Council has identified as a top priority, particularly targeting the deepest affordability levels. Policy L-1.11: Hold new development to the The material palette consists of traditional highest development standards in order to materials, like stucco and metal panels, in a warm maintain Palo Alto's livability and achieve the neutral color scheme to complement the highest quality development with the least surrounding context. impacts. Policy L-2.5 Support the creation of affordable This project includes 100% of the units as BMR housing units for middle to lower income level units at the Low Income (25%) and Moderate earners, such as City and school district Income (75%) criteria. employees, as feasible. Policy L-2.8: When considering infill The property is undeveloped; therefore, no redevelopment, work to minimize displacement residents would be displaced as a result of this of existing residents. project. Page 3 of 17 Item 15 Page 24 Packet Page 428 of 582 ITEM 15 Attachment C Policy L-2.11 Encourage new development and redevelopment to incorporate greenery and natural features such as green rooftops, pocket parks, plazas and rain gardens. Policy L-3.1: Ensure that new or remodeled structures are compatible with the neighborhood and adjacent structures. Policy L-3.4: Ensure that new multi -family buildings, entries and outdoor spaces are designed and arranged so that each development has a clear relationship to a public street. Policy L-6.1: Promote high -quality design and site planning that is compatible with surrounding development and public spaces. Policy L-6.2: Use the Zoning Ordinance, design review process, design guidelines and Coordinated Area Plans to ensure high quality residential and commercial design and architectural compatibility. Policy L-6.7 Where possible, avoid abrupt changes in scale and density between residential and non-residential areas and between residential areas of different densities. To promote compatibility and gradual transitions between land uses, place zoning district boundaries at mid -block locations rather than streets wherever possible. Policy L-9.2: Encourage development that creatively integrates parking into the project, including by locating it behind buildings or underground wherever possible, or by providing for shared use of parking areas. Encourage other alternatives to surface parking lots that minimize the amount of land devoted to parking while still maintaining safe streets, street trees, a vibrant local economy and sufficient parking to meet demand. The proposed building includes a rooftop terrace for the residents, which will provide the primary open/landscape space for the site. Trees will be planted at the roof and replacement trees will be provided off -site to expand the City's tree canopy. Although the development is taller than adjacent single -story developments, the proposed massing at the ground floor transitions well between the one- and two-story structures. The proposed design steps in -ward at the shared interior sides of the property to maximize the massing breaks between neighboring structures given the narrowness of the site. The building is designed to have the primary pedestrian entry off El Camino Real. The proposed residential building places its massing along El Camino Real in keeping with the minimum 50% built -to setback requirements. In addition, the primary entries occur along El Camino Real which reinforces the streetscape between the adjacent restaurant and hotel uses. The project is consistent with the City's Zoning Ordinance and, on balance, meets the City's design guidelines and the ARB findings for approval. Although the development is taller than adjacent single -story developments, the proposed massing at the ground floor transitions well between the one- and two-story structures. The proposed design steps in -ward at the shared interior sides of the property to maximize the massing breaks between neighboring structures given the narrowness of the site. The current site is undeveloped and the proposed project provides all vehicle parking inside a garage. Page 4 of 17 Item 15 Page 25 Packet Page 429 of 582 ITEM 15 Attachment C Policy L-9.3: Treat residential streets as both public ways and neighborhood amenities. Provide and maintain continuous sidewalks, healthy street trees, benches and other amenities that promote walking and "active" transportation. Policy T-1.19 Provide facilities that encourage and support bicycling and walking. Policy T-5.1: All new development projects should manage parking demand generated by the project, without the use of on -street parking, consistent with the established parking regulations. As demonstrated parking demand decreases over time, parking requirements for new construction should decrease. Policy N-2.10: Preserve and protect Regulated Trees, such as native oaks and other significant trees, on public and private property, including landscape trees approved as part of a development review process and consider strategies for expanding tree protection in Palo Alto. Program H2.1.2: Allow increased residential densities and mixed -use development only where adequate urban services and amenities, including roadway capacity, are available. Goal H-2: Support the construction of housing near schools, transit, parks, shopping, employment and cultural institutions. The project proposes to increase the sidewalk along El Camino Real by providing a public easement to allow for a 12 -foot effective sidewalk width. In addition, the applicant is proposing short-term bike parking in the public right of way that will help to activate the streetscape for individuals that visit the site. The project includes long-term bicycle parking in compliance with the code requirements. The applicant is proposing short-term bike parking in the public right of way that will help to activate the streetscape for individuals that visit the site. The property owner is providing all tenants with a free VTA passes as a part of their TDM plan as well as un-bundling parking spaces with the units to incentivize multi -modal forms of transit. The project protects existing street trees. Any tree of 4" removed will be replaced pursuant to City requirements to ensure no net loss of canopy, as required by code. The project is located within an urban area along the El Camino Real corridor in close proximity to high -quality transit. The project infills an existing vacant property with a new multi -family housing development in a transit -oriented location that is also near schools, shopping, and employment along El Camino Real and within the immediate vicinity of Stanford Research Park. The project has also been reviewed for conformance with the development standards in the zoning code (see Attachment C for a complete zoning consistency analysis). The proposed project exceeds City Council's 20% minimum affordable housing requirement for Planned Home Zoning (PHZ) applications by providing an affordability rating of 75.3% based on Option #2 of the PHZ guidelines. In addition, the owner has agreed to limit affordable rents for the Low -Income units at 70% and the Moderate -Income units at 110% of Santa Clara County AMI, instead of the traditional City standard of 80% and 120% of SCC AMI respectively. This substantial benefit justifies the deviations from the zoning code requested by the applicant. Finding #2: The project has a unified and coherent design, that: a. creates an internal sense of order and desirable environment for occupants, visitors, and the general Page 5 of 17 Item 15 Page 26 Packet Page 430 of 582 ITEM 15 Attachment C community, b. preserves, respects and integrates existing natural features that contribute positively to the site and the historic character including historic resources of the area when relevant, c. is consistent with the context -based design criteria of the applicable zone district, d. provides harmonious transitions in scale, mass and character to adjacent land uses and land use designations, e. enhances living conditions on the site (if it includes residential uses) and in adjacent residential areas. The project is consistent with Finding #2 because: The use of stucco and metal panel elements within the design is well composed and reflects a consistent and coherent order between the proposed structure in context with the surrounding stucco buildings. The entrance along the ground floor on El Camino Real is clearly defined and the transition in scale between the surrounding buildings is appropriate as the building places most of its massing at the front and rear of the site and tapers inward along the shared interior side property lines. Given the narrowness and shallowness of the site, ground level landscaping is minimized, however, substantial landscaping has been provided at the rooftop which provides the majority of the open/landscape space requirements for the property. Finding #3: The design is of high aesthetic quality, using high quality, integrated materials and appropriate construction techniques, and incorporating textures, colors, and other details that are compatible with and enhance the surrounding area. The project is consistent with Finding #3 because: The project incorporates a variety of materials, including gray cast concrete, wood tone panels, painted siding, glass, and landscape elements that are of high quality and that integrate well to create a cohesive design. The project proposes on site Public Art, which will also enhance the design. The project will stand out from other nearby buildings, because it uses a variety of materials to break up the massing and add visual interest. Most other buildings in the area use a more limited palette. Finding #4: The design is functional, allowing for ease and safety of pedestrian and bicycle traffic and providing for elements that support the building's necessary operations (e.g. convenient vehicle access to property and utilities, appropriate arrangement and amount of open space and integrated signage, if applicable, etc.). The project is consistent with Finding #4 because: The driveway to the at -grade garage and parking lifts is located on the narrow street frontage along El Camino Real which is appropriate to efficiently direct vehicle traffic on and off the site. The long-term bike parking facility is located at the rear of the property in a bike room which has a direct walking path out to El Camino Real. Pedestrian access to the lobby is clear and the lobby provides easy access to the residences above ground via elevator or staircase. Finding #5: The landscape design complements and enhances the building design and its surroundings, is appropriate to the site's functions, and utilizes to the extent practical, regional indigenous drought resistant plant material capable of providing desirable habitat that can be appropriately maintained. The project is consistent with Finding #5 because: Page 6 of 17 Item 15 Page 27 Packet Page 431 of 582 ITEM 15 Attachment C Due to the small lot size, significant landscaping at the ground level is difficult to achieve. Therefore, a significant amount of landscaping has been provided at the rooftop terrace which will serve as the primary shared open space for the residents. Seven trees will be planted at the rooftop terrace to maximize vegetative canopy for residents and 72% of the landscaping proposed in the project will utilize California Native species. Finding #6: The project incorporates design principles that achieve sustainability in areas related to energy efficiency, water conservation, building materials, landscaping, and site planning. The project is consistent with Finding #6 because: In accordance with the City's Green Building Regulations, the building will satisfy the requirements for CALGreen Mandatory + Tier 2. The project also proposes an all -electric design and will be consistent with Model Water Efficiency Landscape Ordinance (MWELO) requirements. SECTION 5. Conditions of Approval. PLANNING DIVISION 1. CONFORMANCE WITH PLANS. Construction and development shall conform to the approved plans entitled, "3265 El Camino Real, Palo Alto, CA," uploaded to the Palo Alto Online Permitting Services Citizen Portal on October 11, 2024, as modified by these conditions of approval. These conditions of approval shall apply to any successors and/or future owners of the property such that they may be modified through mutual agreement between the City and said successor/future owner. 2. BUILDING PERMIT. Apply for a building permit and meet any and all conditions as contained in this document. The ARB recommended the plans be modified to incorporate the following conditions be addressed prior to building permit issuance: a. Modify the stairway/elevator tower elements on the building to provide opportunities for natural light, via window or skylight, where feasible. b. Modify the rear facade of the building at the bike room to provide opportunities for natural light, via window or skylight, where feasible. c. Incorporate Auditory and Visual warnings at the garage door when the door opens to signal to bicyclists and pedestrians that vehicles are entering or exiting the garage. The Auditory warnings may be turned off outside of normal business hours to limit noise impacts to residents on the site, however, the Visual warning system must be active at all times. These warning systems must be maintained and repaired immediately if damaged or malfunctioning. d. The garage door must be kept open during peak travel hours (7:00am-9:00am in the morning and 4:00pm-6:00pm in the evening; Monday through Friday) to allow for efficient vehicle movement in and out of the property. 3. BUILDING PERMIT PLAN SET. A copy of this cover letter and conditions of approval shall be printed on the second page of the plans submitted for building permit. 4. ARB SUB -COMMITTEE. The following items shall be returned to the ARB sub -committee for review and approval prior to issuance of any Building permit: a. Provide additional details on Hardie -board siding to be used on the stairway/elevator tower elements of the building which clarifies the vertical transition between boards. Consider using a Page 7 of 17 Item 15 Page 28 Packet Page 432 of 582 ITEM 15 Attachment C different material altogether or a different color on the projecting and recessing elements of this material to express greater depth and shadow play so that the material does not appear flat. 5. PROJECT MODIFICATIONS. All modifications to the approved project shall be submitted for review and approval prior to construction. If during the Building Permit review and construction phase, the project is modified by the applicant, it is the responsibility of the applicant to contact the Planning Division/project planner directly to obtain approval of the project modification. It is the applicant's responsibility to highlight any proposed changes to the project and to bring it to the project planner's attention. 6. ENTITLEMENT EXPIRATION. The project approval shall be valid for a period of two years from the date of issuance of the entitlement. If construction of buildings has not commenced within two years from the date of issuance of the entitlement, the Planning entitlement shall expire. Application for a one-year extension of this entitlement may be made prior to expiration. 7. LANDSCAPE PLAN. Plantings shall be installed in accordance with the approved plan set and shall be permanently maintained and replaced as necessary. 8. NESTING BIRD SURVEY. Per the City's standard conditions, vegetation or tree removal shall be prohibited during the general avian nesting season (February 1— August 31), if feasible. If nesting season avoidance is not feasible, the applicant shall retain a qualified biologist, as approved by the City of Palo Alto, to conduct a preconstruction nesting bird survey to determine the presence/absence, location, and activity status of any active nests on or adjacent to the project site no more than 14 days prior to scheduled vegetation clearance and/or demolition activities. If nesting birds are found to be present, a suitable buffer (typically a minimum buffer of 50 feet for passerines and a minimum buffer of 250 feet for raptors) as determined appropriate by the biologist, shall be established around such active nests and no construction shall be allowed within the buffer areas until a qualified biologist has determined that the nest is no longer active (i.e., the nestlings have fledged and are no longer reliant on the nest). A report documenting any data recovered during monitoring shall be prepared by a qualified biologist and submitted to the Director of Planning prior to final planning inspection. 9. UNANTICIPATED DISCOVERY OF BURIED ARCHAEOLOGICAL, PALEONTOLOGICAL, AND TRIBAL CULTURAL RESOURCES. No known archeological or paleontological resources are present on or within the immediate vicinity of the site. However, in the unlikely event that an archeological resource or paleontological resource is unearthed during ground disturbing activities, work in the immediate area must be halted and an archaeologist meeting the Secretary of the Interior's Professional Qualifications Standards for archeology (National Park Service 1983) shall be contacted immediately to evaluate the find. If the find is Native American in origin, then a Native American representative must also be contacted to participate in the evaluation of the find. The qualified archaeologist, and, if applicable, the Native American representative, shall examine the find and make recommendations regarding additional work necessary to evaluate the significance of the find and the appropriate treatment of the resource. Recommendations could include, but are not limited to, invasive or non-invasive testing, sampling, laboratory analysis, preservation in place, or data recovery. A report of findings documenting any data recovered during monitoring shall be prepared by a qualified archaeologist and submitted to the Director of Planning prior to final planning inspection. Page 8 of 17 Item 15 Page 29 Packet Page 433 of 582 ITEM 15 Attachment C 10. COE PLUME AREA. For projects within the California -Olive -Emerson (COE) Plume area, which are known to be subject to risk of vapor intrusion, the applicant shall assess site conditions to determine both the nature and extent of contamination. If contamination at the site exceeds the most current environmental screening levels (ESLs) identified by the Regional Water Quality Control Board (RWQCB) for volatile organic compounds, the applicant shall prepare and submit a Site Management and Contingency Plan (SMCP) to either the Department of Toxic Substances Control (DTSC), RWQCB, or the County of Santa Clara Department of Environmental Health for approval. The SMCP shall include details regarding the pending development and propose remediation and/or mitigation to address any environmental risk identified in the site assessment. The applicant shall agree to and implement all recommendations of the reviewing regulatory agency approving the SMCP in order to reduce the exposure of future occupants to vapor intrusion. A copy of the approved SMCP shall be submitted to the Director of Planning prior to issuance of a building permit. If the reviewing agency requires that a vapor intrusion barrier system be installed, the VIMs shall be documented in the building permit plan set prior to issuance of the building permit. 11. OPEN AIR LOUDSPEAKERS (AMPLIFIED MUSIC). In accordance with PAMC Section 18.40.230(i), the use of sound amplifying equipment shall be prohibited at the rooftop terrace. Signs shall be affixed adjacent to access elevators and stairs within the rooftop terrace providing notice of this prohibition. 12. NOISE REPORT AT BUILDING STAGE. An analysis of the proposed project's compliance with the City's noise requirements for the proposed HVAC was prepared as part of the documentation to support the CEQA Guidelines 15183 consistency analysis. At the time of building permit issuance for new construction or for installation of any such mechanical equipment, if the proposed equipment exceeds the anticipated noise level that was analyzed or is proposed in a location that is closer to the property line, the applicant shall submit an acoustical analysis by an acoustical engineer demonstrating projected compliance with the Noise Ordinance. The analysis shall be based on acoustical readings, equipment specifications and any proposed sound reduction measures, such as equipment enclosures or insulation, which demonstrate a sufficient degree of sound attenuation to assure that the prescribed noise levels will not be exceeded. 13. SIGN APPROVAL NEEDED. No signs are approved at this time. All signs shall conform to the requirements of Title 16.20 of the Palo Alto Municipal Code (Sign Code) and shall be subject to approval by the Director of Planning. 14. AFFORDABLE HOUSING PLAN AND AGREEMENT. The applicant shall prepare an affordable housing plan. An affordable housing agreement, reviewed and approved by the City of Palo Alto, shall be recorded prior to the approval of any final or parcel map or building permit for the development project (PAMC 16.65.090). a. The low-income and moderate -income units shall be deed restricted to a minimum of 55 - years. b. The cost for each unbundled parking stall shall not exceed 4% of rent plus utilities allowance for the low-income units and 5% of rent plus utilities allowance for the moderate -income units. 15. BELOW MARKET RATE (BMR) HOUSING. A Regulatory Agreement in a form acceptable to the City Attorney for the fifty-five (55) BMR units shall be executed and recorded prior to building permit issuance. All BMR units constructed under this condition shall be in conformance with the City's BMR Program rules Page 9 of 17 Item 15 Page 30 Packet Page 434 of 582 ITEM 15 Attachment C and regulations. Failure to comply with the timing of this condition and any adopted BMR Program rules and regulations shall not waive its later enforcement. Failure to comply with the timing of this condition and any adopted BMR Program rules and regulations shall not waive its later enforcement. 16. REFUSE. All trash areas shall be effectively maintained in an orderly state to prevent water from entering into the garbage container. Outdoor storage on Lambert Avenue is only allowed/permitted on collection days as shown on the approved plan set. The bins must be moved into the trash staging area on -site promptly after the waste hauler has collected it so that the bins are not left on the street during the day. Trash areas shall be maintained in a manner to discourage illegal dumping. 17. TDM PROGRAM AND ANNUAL REPORTING REQUIREMENT. The applicant shall abide by the Final Transportation Demand Management (TDM) plan, entitled "3265 El Camino Real Residential Development, Transportation Demand Management Prepared on Behalf of Half Dome Capital LLC", dated October 29, 2024 to the satisfaction of the Director of Planning and Development Services. The TDM plan includes measures and programs to achieve a reduction in single -occupancy vehicle trips to the site by a minimum of 30%, in conformance with the City's Comprehensive Plan. The TDM plan includes an annual monitoring plan to document mode split and trips to the project site. The TDM annual report shall be submitted to the Chief Transportation Official. Monitoring and reporting requirements may be revised in the future if the minimum reduction is not achieved through the measures and programs initially implemented. Projects that do not achieve the required reduction may be subject to daily penalties as set forth in the City's fee schedule. 18. MECHANICAL LIFT PARKING. Up to 30 parking spaces are provided in a puzzle parking system, which allows independent access to each vehicle. The property owner has agreed to limit vehicles assigned to stalls 7 and 8 to mid -size vehicles in order to ensure minimal turning maneuvers for those stalls and to optimize circulation within the garage. 19. DEVELOPMENT IMPACT FEES. Per PAMC 16.58.030(c), a 100% affordable housing project is exempt from paying development impact fees. 20. REQUIRED PUBLIC ART. Per PAMC 16.61.020(b)(iii), a 100% affordable housing project is exempt from the Public Art requirements of the City. 21. INDEMNITY. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the "indemnified parties") from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City for its actual attorneys' fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice. 22. FINAL INSPECTION. A Planning Division Final inspection will be required to determine substantial compliance with the approved plans prior to the scheduling of a Building Division final. Any revisions during the building process must be approved by Planning, including but not limited to; materials, landscaping and hard surface locations. Contact your Project Planner, Garrett Sauls at Garrett.Sauls@CityofPaloAlto.org to schedule this inspection. Page 10 of 17 Item 15 Page 31 Packet Page 435 of 582 ITEM 15 Attachment C BUILDING 23. A building permit is required for the scope of work shown. 24. At time of building permit, the following items shall be reviewed in detail. a. The Occupied roof complies with 503.1.4 of the California Building Code; b. Show opening protection, fire wall separation, and overhang time at each side of the building. PUBLIC WORKS ZERO WASTE 25. Per Palo Alto Municipal Code 5.20.108 the site is required to have color -coded refuse containers, related color -coded millwork, and colored signage. The three refuse containers shall include recycle (blue container), compost (green container), and garbage (black container). Applicant shall present on the plan the locations and quantity of both (any) internal and external refuse containers, it's millwork, along with the signage. This requirement applies to any external or internal refuse containers located in common areas such as entrances, conference rooms, open space, lobby, garage, mail room, gym, and etc. except for restrooms, copy area, and mother's room. Millwork to store the color -coded refuse containers must have a minimum of four inches in height worth of color -coding, wrapping around the full width of the millwork. Signage must be color coded with photos or illustrations of commonly discarded items. Restrooms must have a green compost container for paper towels and an optional black landfill container if applicable. Copy area must have either a recycle bin only or all three refuse receptacles (green compost, blue recycle, and black landfill container). Mother's room must minimally have a green compost container and black landfill container. Please refer to PAMC 5.20.108 and the Internal Container Guide. Examples of appropriate signage can be found in the Managing Zero Waste at Your Business Guide. Electronic copies of these signage can be found on the Zero Waste Palo Alto's website, https://www.cityofpaloalto.org/Departments/Public- Works/Zero-Waste/What-Goes-Where/Toolkit#section-2 and hard copies can be requested from the waste hauler, Greenwaste of Palo Alto, (650) 493-4894. 26. For the restroom, a green compost bin for paper towels and a small black landfill for sanitary products will be required with proper signage posted on each of the bins. 27. For the refuse bins in the garage, for the center bin (recycling) will need four swivel wheels to be added onto the bin to allow it to maneuver in and out of this space. Since the bin will need to be moved from 3265 El Camino Real to Lambert Avenue, we recommend two people maneuver the bin as it will not be able to move straight. 28. For the lobby/mail area, a recycle and landfill bin (blue recycle, and black landfill) will be required with proper signage posted on each of the bins. TRANSPORTATION 29. The owner shall install a high-speed gate that opens within 10 seconds or less to minimize impact on queuing during peak hours. 30. LIFT SYSTEM. The applicant shall submit an analysis and report, prepared by a qualified professional for review and approval by the Director of Planning and Development Services, that demonstrates the effectiveness of the proposed parking lift system with respect to operational details, identifies a regular and emergency maintenance schedule, and procedures and backup systems for tenants prior to building Page 11 of 17 Item 15 Page 32 Packet Page 436 of 582 ITEM 15 Attachment C permit issuance. The applicant agrees to maintain service contract with a certified individual/organization that will provide a prompt response (within the same or next day) to address system issues. An annual audit of the system must be provided to Planning/Transportation staff of the system to ensure the system operates effectively. If the audit reveals that the system is not functioning or is failing to meet required operational standards, the applicant will be required to take corrective measures. Failure to address identified issues may result in penalties, including but not limited to enforcement actions under local code enforcement procedures. 31. The Owner and any subsequent Owner(s) of the property, including their successors, assigns, or agents, shall comply with all Transportation Demand Management (TDM) measures set forth in this approval. Monitoring reports shall be submitted to the Director of Planning on an annual basis, demonstrating adherence to the approved TDM measures. Should the Owner fail to meet the established targets and goals of the TDM Plan, the director may require program modifications and may impose administrative penalties if identified deficiencies are not addressed within six months. 32. The developer shall be responsible for the maintenance of the short-term bike racks installed within the public right-of-way. This includes cleaning, inspections, and timely repairs to keep the racks in good working condition, free of rust, debris, or damage. The developer must also ensure that the racks remain accessible and do not obstruct pedestrian pathways. URBAN FORESTRY 33. The owner and contractor shall implement all protection and inspection schedule measures, design recommendations and construction scheduling as stated in the TPR and/or Sheet T-1, and is subject to code compliance action pursuant to PAMC 8.10.080. The required protective fencing shall remain in place until final landscaping and inspection of the project. If called for, project arborist approval must be obtained and documented in the monthly activity report sent to the City. When required, the Contractor and Arborist Monthly Tree Activity Report shall be sent monthly to the City (pwps@cityofpaloalto.org) beginning with the initial verification approval, using the template in the Tree Technical Manual, Addendum 11. 34. Tree Damage, Injury Mitigation and Inspections apply to Contractor. Reporting, injury mitigation measures and arborist inspection schedule (1-5) apply pursuant to TTM, Section 2.20-2.30. Contractor shall be responsible for the repair or replacement of any publicly owned or protected trees that are damaged during the course of construction, pursuant to Title 8 of the Palo Alto Municipal Code, and city Tree Technical Manual, Section 2.25. 35. The following general tree preservation measures apply to all trees to be retained: No storage of material, topsoil, vehicles or equipment shall be permitted within the tree enclosure area. The ground under and around the tree canopy area shall not be altered. Trees to be retained shall be irrigated, aerated and maintained as necessary to ensure survival. 36. Prior to any site work, contractor must call Derek Sproat at 650-496-6985 to schedule an inspection of any required protective fencing. The fencing shall contain required warning sign and remain in place until final inspection of the project. 37. Any approved grading, digging or trenching beneath a tree canopy shall be performed using 'air -spade' method as a preference, with manual hand shovel as a backup. For utility trenching, including sewer line, Page 12 of 17 Item 15 Page 33 Packet Page 437 of 582 ITEM 15 Attachment C roots exposed with diameter of 1.5 inches and greater shall remain intact and not be damaged. If directional boring method is used to tunnel beneath roots, then Table 2-1, Trenching and Tunneling Distance, shall be printed on the final plans to be implemented by Contractor. a. NO NET LOSS OF CANOPY: The proposed removal of protected coast live oak tree (40" DBH tree #3 33' canopy spread) will be approved at building permit issuance due to compliance with municipal code 8.10.050. The applicant and consulting Arborist report has demonstrated compliance in the discussion provided in the consulting arborist report. The replacement value is six new 24" box trees. Three new 24" box trees are proposed in the planting plan. Due to lack of space for the remaining three 24" box trees will be accepted via in -lieu fee in the amount of $1,950 ($650x3 unplanted trees). The fee must be paid prior to permit issuance. A 14 -day public notice is required prior to removal of the 40" coast live oak tree and must be posted after building permit issuance. PUBLIC WORKS ENGINEERING 38. PUBLIC WORKS APPLICATIONS, FORMS, AND DOCUMENTS: Applicant shall be advised that most forms, applications, and informational documents related to Public Works Engineering conditions can be found at the following link: https://www.cityofpaloaIto.org/Departments/Public-Works/Engineering-Services/Forms-and-Permits 39. STREETWORK PERMIT: The applicant shall obtain a Streetwork Permit from the Department of Public Works for all public improvements. 40. GRADING AND EXCAVATION PERMIT: A Grading Permit is required per PAMC Chapter 16.28. The permit application and all applicable documents (see Section H of application) shall be submitted to Public Works Engineering. Add the following note: "THIS GRADING PERMIT WILL ONLY AUTHORIZE GENERAL GRADING AND INSTALLATION OF THE STORM DRAIN SYSTEM. OTHER BUILDING AND UTILITY IMPROVEMENTS ARE SHOWN FOR REFERENCE INFORMATION ONLY AND ARE SUBJECT TO SEPARATE BUILDING PERMIT APPROVAL." 41. ROUGH GRADING: provide a Rough Grading Plan for the work proposed as part of the Grading and Excavation Permit application. The Rough Grading Plans shall including the following: pad elevation, elevator pit elevation, ground monitoring wells, limits of over excavation, stockpile area of material, overall earthwork volumes (cut and fill), temporary shoring for any existing facilities, ramps for access, crane locations (if any), tree protection measures, etc. 42. CIVIL ENGINEER CERTIFICATION: Upon completion of the rough grading work and at the final completion of the work, applicant shall provide an as -graded grading plan prepared by the civil engineer that includes original ground surface elevations, as -graded ground surface elevations, lot drainage patterns and locations and elevations of all surface and subsurface drainage facilities. The civil engineer shall certify that the work was done in accordance with the final approved grading plan. 43. SHORING & TIEBACKS: Provide a shoring plan showing the existing utilities (if needed), to clearly indicate how the new structures will be constructed while protecting the existing utilities (if any). If tiebacks are proposed they shall not extend onto adjacent private property, existing easements or into the City's right-of- way without having first obtained written permission from the private property owners and/or an encroachment permit from Public Works. Page 13 of 17 Item 15 Page 34 Packet Page 438 of 582 ITEM 15 Attachment C 44. GEOTECHNICAL ENGINEER STATEMENT: The grading plans shall include the following statement signed and sealed by the Geotechnical Engineer of Record: "THIS PLAN HAS BEEN REVIEWED AND FOUND TO BE IN GENERAL CONFORMANCE WITH THE INTENT AND PURPOSE OF THE GEOTECHNICAL REPORT". 45. ENCROACHMENT PERMIT: Prior to any work in the public right-of-way, the applicant shall obtain an encroachment permit from the Public Works Department for any work that encroaches onto the City right- of-way. 46. LOGISTICS PLAN: A construction logistics plan shall be provided addressing all impacts to the public including, at a minimum: work hours, noticing of affected businesses, bus stop relocations, construction signage, dust control, noise control, storm water pollution prevention, job trailer, contractors' parking, truck routes, staging, concrete pours, crane lifts, scaffolding, materials storage, pedestrian safety, and traffic control. All truck routes shall conform to the City of Palo Alto's Trucks and Truck Route Ordinance, Chapter 10.48, and the route map. NOTE: Some items/tasks on the logistics plan may require an encroachment permit. 47. STORMWATER POLLUTION PREVENTION: All improvement plan sets shall include the "Pollution Prevention — It's Part of the Plan" sheet. 48. C.3 THIRD -PARTY CERTIFICATION: Applicant shall provide certification from a qualified third -party reviewer that the proposed permanent storm water pollution prevention measures comply with the requirements of Provision C.3 and Palo Alto Municipal Code Chapter 16.11. Submit the following: a. Stamped and signed C.3 data form (April 2023 version) from SCVURPPP. https://scvurppp.org/wp- content/uploads/2023/04/SCVURPPP-C.3-Data-Form-= updated_4-12-2023_clean_fillable.pdf b. Final stamped and signed letter confirming which documents were reviewed and that the project complies with Provision C.3 and PAMC 16.11. 49. C.3 STORMWATER AGREEMENT: The applicant shall enter into a Stormwater Maintenance Agreement with the City to guarantee the ongoing maintenance of the permanent storm water pollution prevention measures. The City will inspect the treatment measures yearly and charge an inspection fee. The agreement shall be executed by the applicant team prior to building permit final. 50. C.3 FINAL THIRD PARTY CERTIFICATION PRIOR TO OCCUPANCY: Within 45 days of the installation of the required storm water treatment measures and prior to the issuance of an occupancy permit for the building, the third -party reviewer shall submit to the City a certification verifying that all the permanent storm water pollution prevention measures were installed in accordance with the approved plans. 51. IMPERVIOUS SURFACE AREA: The project will be creating or replacing 500 square feet or more of impervious surface. Accordingly, the applicant shall provide calculations of the existing and proposed impervious surface areas with the building permit application. The Impervious Area Worksheet for Land Developments form and instructions are available at the Development Center or on our website. To determine the impervious surface area that is being disturbed, provide the quantity on the site plan. Page 14 of 17 Item 15 Page 35 Packet Page 439 of 582 ITEM 15 Attachment C 52. PRIOR TO PUBLIC WORKS FINAL/ACCEPTANCE (STORM DRAIN LOGO): The applicant is required to paint "No Dumping/Flows to Matadero Creek" in blue on a white background adjacent to all onsite storm drain inlets. The name of the creek to which the proposed development drains can be obtained from Public Works Engineering. Stencils of the logo are available from the Public Works Environmental Compliance Division, which may be contacted at (650) 329-2598. Include the instruction to paint the logos on the construction grading and drainage plan. 53. OUTSIDE AGENCY APPROVAL: A portion of the proposed work is within Caltran's right-of-way. Evidence of Caltran's approval shall be submitted prior to issuance of City permits. WATERSHED PROTECTION 54. Provide a Completed Special Projects Worksheet which can be found here: https://scvurppp.org/newdev/. Also provide a Special Projects Narrative as required per the MPR. A template of the narrative can be found in the SCVURPPP C.3 Handbook Appendix J. 55. Exemption for PAMC 16.09.180(b)(11): Palo Alto Municipal Code (PAMC) section 16.09.180(b)(11) requires that "new multi -family residential units and residential development projects with twenty-five or more units shall provide a covered area for occupants to wash their vehicles." The applicant has stated that the proposed project located at 3265 El Camino Real (24PLN-00012) is not able to meet this requirement due to complete build -out of the parcel. Because it is a 100% affordable housing project, Public Works Watershed Protection is providing an exemption to this requirement. This exemption requires a prohibition of onsite car washing at 3265 El Camino Real and adherence to the following conditions of approval: 1) Tenant lease agreements shall contain prohibition language, and new tenants shall be made aware of this prohibition upon lease signing; and 2) Visible signage with prohibition language shall be posted within the parking garage and other relevant outdoor areas. Once available, please provide Ryan Mayfield, Pretreatment Investigator, a copy of the lease template and photos of the signage placement at roan.mayfield@cityofpaloalto.org. WATER -GAS -WASTEWATER UTILITIES PRIOR TO ISSUANCE OF DEMOLITION PERMIT 56. The applicant shall submit a request to disconnect utility services and remove meters. The utilities demo is to be processed within 10 working days after receipt of the request. The demolition permit will be issued by the building inspection division after all utility services and/or meters have been disconnected and removed. FOR BUILDING PERMIT (WGW Utility Engineering) 57. The applicant shall submit a completed water -gas -wastewater service connection application - load sheet for the City of Palo Alto Utilities. The applicant must provide all the information requested for utility service demands (water in fixture units/g.p.m., gas in b.t.u.h, and sewer in fixture units/g.p.d.). The applicant shall provide the existing (prior) loads, the new loads, and the combined/total loads (the new loads plus any existing loads to remain). 58. The applicant shall submit improvement plans for utility construction. The plans must show the size and location of all underground utilities within the development and the public right of way including meters, Page 15 of 17 Item 15 Page 36 Packet Page 440 of 582 ITEM 15 Attachment C backflow preventers, fire service requirements, sewer mains, sewer cleanouts, sewer lift stations and any other required utilities. Plans for new wastewater laterals and mains need to include new wastewater pipe profiles showing existing potentially conflicting utilities especially storm drain pipes, electric and communication duct banks. Existing duct banks need to be daylighted by potholing to the bottom of the ductbank to verify cross section prior to plan approval and starting lateral installation. Plans for new storm drain mains and laterals need to include profiles showing existing potential conflicts with sewer, water and gas. 59. The applicant must show on the site plan the existence of any auxiliary water supply, (i.e. water well, gray water, recycled water, rain catchment, water storage tank, etc). 60. The applicant shall be responsible for installing and upgrading the existing utility mains and/or services, and laterals as necessary to handle anticipated peak loads. This responsibility includes all costs associated with the design and construction for the installation/upgrade of the utility mains and/or services/laterals. 61. An approved reduced pressure principle assembly (RPPA backflow preventer device) is required for all existing and new water connections from Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive. The RPPA shall be installed on the owner's property and directly behind the water meter within 5 feet of the property line. RPPA's for domestic service shall be lead-free. Show the location of the RPPA on the plans. An approved reduced pressure detector assembly (RPDA backflow preventer device, STD. WD -12A or STD. WD -12B) is required for all existing and new fire water connections from Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive. The RPDA shall be installed on the owner's property and directly behind the City owned meter, within 5' (feet) of the property line or City Right of Way. 62. All backflow preventer devices shall be approved by the WGW engineering division. Inspection by the city inspector is required for the supply pipe between the meter and the assembly. 63. The applicant shall pay the capacity fees and connection fees associated with new utility service/s or added demand on existing services. The approved relocation of services, meters, hydrants, or other facilities will be performed at the cost of the person/entity requesting the relocation. 64. If a new water service line installation for fire system usage is required, show the location of the new water service on the plans. The applicant shall provide to the engineering department a copy of the plans for fire system including all fire department's requirements. If the existing fire service to remain, then the applicant must sign an application for CPAU connection for & agree to operate the fire service in accordance with these rules & regulations. Applicant needs to verify whether the existing water supply can meet the current & anticipated fire flows at the site & all equipment for the sprinkler system is in accordance with the fire department requirements. 65. Each unit or building shall have its own water meter shown on the plans. Each parcel shall have its own water service and sewer lateral connection shown on the plans. Page 16 of 17 Item 15 Page 37 Packet Page 441 of 582 ITEM 15 Attachment C 66. A sewer lateral per lot is required. Show the location of the sewer lateral on the plans. Existing sewer laterals (city's co to sewer main) if determined to be in poor condition shall be replaced at the owner's expense. A video inspection and full evaluation of the lateral will be performed by WGW utilities operations. The applicant will be informed of the sewer lateral assessment and need to install a new lateral. If a new sewer lateral is required, a profile of the sewer lateral is required showing any possible conflicts with storm, electric/communications duct banks or other utilities. 67. All existing water and wastewater services/laterals that will not be reused shall be abandoned at the main per the latest WGW utilities standards. 68. Utility vaults, transformers, utility cabinets, concrete bases, or other structures cannot be placed over existing water, gas, or wastewater mains/services. Maintain 1' horizontal clear separation from the vault/cabinet/concrete base to existing utilities as found in the field. If there is a conflict with existing utilities, cabinets/vaults/bases shall be relocated from the plan location as needed to meet field conditions. New trees may not be planted within 10 feet of existing water, gas, and wastewater mains/laterals/water services/or meters. New water or wastewater services/laterals/meters may not be installed within 10' of existing trees. Maintain 10' between new trees and new water and wastewater services/laterals/meters. 69. The applicant shall provide to the WGW Utility Engineering department a copy of the plans for the fire system including all fire department's requirements prior to the actual service installation. 70. All utility installations shall be in accordance with the City of Palo Alto utility standards for water, gas, & wastewater. PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: City Clerk Mayor APPROVED: APPROVED AS TO FORM: Director of Planning and Deputy City Attorney Development Services Page 17 of 17 Item 15 Page 38 Packet Page 442 of 582 ITEM 15 Attachment C PLANS AND DRAWINGS REFERENCED: 1. Those plans prepared by Trachtenberg Architects titled "3265 El Camino Real", consisting of 44 pages, dated October 11, 2024 and received October 11, 2024. Page 18 of 17 Item 15 Page 39 Packet Page 443 of 582 ITEM 15 ATTACHMENT C Attachment D ZONING COMPARISON TABLE 3265 El Camino Real, 24PLN-00012 The PHZ/PC Special Requirements (18.38.150) do not apply because the site is not within 150 ft of a residential zoning district Regulation Required CS AH Development Proposed Development Standard Standard Minimum Site Area, width No minimum size or No minimum size or 7,492 sf and depth dimensions dimensions Minimum Front Yard 0-10 ft to create an 8-12 ft 0-10 ft to create an 8-12 ft 4 ft, 12 ft effective effective sidewalk width (8) effective sidewalk width (8) sidewalk Rear Yard 10 ft 10 ft 0 @ ground floor; 5 ft at parts of upper floors Interior Side Yard None None 0-5 ft @ ground floor; 0-8 ft at upper floor Build -to -Lines 50% of frontage built to 50% of frontage built to 100%; Complies setback (1) setback (1) Max. Site Coverage 50% (3,746 sf) None 87% (6,525 sf) Max. Building Height 50 feet 50 feet 70 ft. 8 in. to roof deck Add'I 15 ft for equipment Add'I 15 ft for equipment 79 ft. 8 in. to elevator Max. Floor Area Ratio 0.6:1 (4,495 sf) for 100% 2.0 for 100% affordable 4.42:1 (33,089 sf) (FAR) residential sites on El housing Camino Real Residential Density (4) No max on El Camino Real No max 323 du/acre Min. Ground Floor None exists on site; None required None proposed Commercial FAR 1101 therefore, no Retail Preservation Daylight Plane for lot lines None, does not abut None, does not abut None, does not abut abutting one or more residential residential residential residential zone districts other than an RM-40 or PC Zone Minimum 30% (2,247.6 sf) (2) 20% (1498.4 sf), may 35% (2,655 sf) Landscape/Open Space Max 1,348.6 sf rooftop include rooftop garden 1,700 sf rooftop garden Coverage garden (60% of 2,247.6 sf) (76% of req. 2,247.6 sf) Minimum Useable Open 150 sf per unit(2) 50 sf per unit 31 sf per unit Space (Private and/or Common) (1) Twenty -five-foot driveway access permitted regardless of frontage. (2) Required usable open space: (1) may be any combination of private and common open spaces; (2) does not need to be located on the ground (but rooftop gardens are not included as open space except as provided below); (3) minimum private open space dimension six feet; and (4) minimum common open space dimension twelve feet. For CN and CS sites on El Camino Real and CC(2) sites that do not abut a single- or two-family residential use or zoning district, rooftop gardens may qualify as usable open space and may count as up to 60% of the required usable open space for the residential component of a project. In order to qualify as usable open space, the rooftop garden shall meet the requirements set forth in Section 18.40.230. Item 15 Page 40 Packet Page 444 of 582 (4) For CN sites on El Camino Real, height may increase to a maximum of 40 feet and the FAR may increase to a maQittfdObanei tD (0.5:1 for nonresidential, 0.5:1 for residential). (8) A 12 -foot sidewalk width is required along El Camino Real frontage. (10) In the CC(2) zone and on CN and CS zoned sites on El Camino Real, there shall be no minimum mixed use ground floor commercial FAR for a residential project, except to the extent that the retail preservation requirements of Section 18.40.180 or the retail shopping (R) combining district (Chapter 18.30(A)) applies. Table 2: CONFORMANCE WITH CHAPTER 18.52 (Off -Street Parking and Loading) for Multiple Family Use Type Required Standard Required AH Proposed Vehicle Parking 1 per studio or 1- .75 per unit of any size 2 ADA spaces1 bedroom unit (55 (41 spaces) 30 stacker spaces spaces) 32 spaces total Bicycle Parking 1 per unit (55 spaces), 1 per unit (44 spaces), 55 LT; 4 ST Provided Off - 100% - LT; 100% - LT; Site on Sidewalk on El 1 every 10 units (6) for 1 every 10 units (6) for Camino Real guest parking —ST; guest parking —ST; Loading Space One for more than 50 One for more than 50 None provided units units 1 PAMC 18.52.040(b)(6-8) allows accessible loading zones to count as parking spaces. If those loading zones are shared between two stalls, they are double counted. Item 15 Page 41 Packet Page 445 of 582 ITEM 15 O Attachment E I-IRAUN TRANSPORTATION CONSULTANTS, INC. 3265 El Camino Real Residential Development Transportation Demand Management (TDM) Plan Prepared for: The City of Palo Alto on Behalf of Half Dome Capital LLC October 29, 2024 • oho Hexagon Transportation Consultants, Inc. Hexagon Office: 100 Century Center Court, Suite 501, San Jose, CA 95112 Phone: 408.971.6100 Hexagon Job Number: 23JL15 r ° Client Name: Half Dome Capital LLC San Jose • Gilroy • Pleasanton • Phoenix www.hextrans.com Areawide Circulation Plans Corridor Studies Pavement Delineation Plans Traffic Handling Plans Impact Fees Interchange Analysis Parking Transportation Planning Traffic Calming Traffic Control PIaI�h®fTOei on Traffic Impact Analysis 4r Irj 2d Forecasting s ■ ITEM 15 3265 El Camino Real Residential Development TDM Plan Ct 'eM,E2024 Table of Contents 1. Introduction....................................................................................................................1 2. Existing Transportation Facilities....................................................................................5 3. Proposed TDM Measures.............................................................................................10 4. TDM Implementation, Monitoring, and Reporting.........................................................18 Appendices Appendix A 3265 El Camino Real Commuter Flier Example Appendix B Residential Survey Example List of Tables Table 1 Project Trip Estimates....................................................................................................2 Table 2 Existing Transit Service..................................................................................................7 Table 3 TDM Measures and Implementation Responsibilities...................................................12 List of Figures Figure 1 Project Site Location......................................................................................................3 Figure2 Site Plan.........................................................................................................................4 Figure 3 Existing Transit Services................................................................................................6 Figure 4 Existing Bicycle Facilities................................................................................................9 Figure 5 Palo Alto Unified School District Sites..........................................................................14 :: PIXA60H Item 15 Page 43 Packet Page 447 of 582 ITEM 15 3265 El Camino Real Residential Development TDM Plan (f12024 1. Introduction This Transportation Demand Management (TDM) plan has been prepared for the proposed residential development at 3265 El Camino Real in Palo Alto, California. The development will provide less parking than required, so a TDM plan is required per the City of Palo Alto Municipal Code. TDM is a combination of services, incentives, facilities, and actions that reduce single -occupant vehicle (SOV) trips to help relieve traffic congestion, parking demand, greenhouse gas emissions, and air pollution problems. The purpose of a TDM plan is to promote more efficient utilization of existing transportation facilities, and to ensure that new developments are designed to maximize the potential for sustainable transportation usage. Project Description The project site is located along the El Camino Real corridor at 3265 El Camino Real in Palo Alto, California (see Figure 1). The project will demolish the vacant building and construct 55 affordable housing units in a 6 -story building. There would be 30 studio units and 25 one -bedroom units. In comparison to the Affordable Housing Incentive Program (AHIP) in Section 18.32 of the Zoning Code, the project would be required to provide 0.75 space per unit, or 42 parking spaces. The project will provide 31 parking spaces (29 stacker parking spaces and 1 ADA parking space) in a ground level parking structure, which is 11 parking spaces (26 percent) fewer than would be required in comparison to the AHIP. In addition, the City's zoning code, Section 18.52.040 states that multifamily housing developments require one space per studio and one -bedroom units and two spaces per two- or more bedroom units, which would require a total of 55 parking spaces. Per the Zoning Code Section 18.52.030(i), a TDM plan is required for all projects that request a parking reduction. Project Trip Generation and Trip Reduction Target Trip generation resulting from the development was estimated using the trip rates published in the Institute of Transportation Engineers' (ITE) Trip Generation Manual, 11th Edition (2021). Trips that will be generated by the proposed development were estimated using the ITE trip rates for "Multifamily Housing (Mid -Rise)" (Land Use 221). The "Multifamily Housing (Mid -Rise)" ITE land use category includes apartments, townhouses, and condominiums with three to 10 floors of living space. The project would build five floors of residential units. Although the ITE Manual includes an "Affordable Housing" category, there are only two studies included, so the rates could be inaccurate. NIXA60N Page 1 1 Item 15 Page 44 Packet Page 448 of 582 —lI1yII.- 3265 El Camino Real Residential Development TDM Plan &W&ReM,E2024 Based on the published trip rates, the proposed residential development is expected to generate 20 trips during the AM peak hour and 21 trips during the PM peak hour (see Table 1). Because the project is located within the El Camino Real corridor, the project has a required minimum trip reduction of 30 percent through TDM. With the required 30 percent trip reduction, the vehicle trips generated by the project should not exceed 14 trips during the AM peak hour and 15 trips during the PM peak hour. Table 1 Project Trip Estimates 1 I -I XMON Page 1 2 tll Item 15 Page 45 Packet Page 449 of 582 ITEM 15 3265 El Camino Real Residential Development TDM Plan Attachment E �° X96/eLS� Q' Sf NN; cP ago � a� Aa��B N cg / �r a) C y O X a cav e/%h 2 s oil ac c�` 9sh S ¢, f Q- �c a / b �° °gym I ea/ Rdn'°s cad o� ao�o / c y°c LEGEND = Site Location u IXA6ON wa O` is CyA�e N a m Figure 1 Project Site Location Item 15 Page 46 Packet Page 450 of 582 NORTH Not S-11 ITEM 15 Attachment L a Cn YV �~ -ya W Item 15 Page 47 Packet Page 451 of 582 ITEM 15 3265 El Camino Real Residential Development TDM Plan (f12024 2. Existing Transportation Facilities This chapter describes the existing transportation facilities and services near the project site that can be utilized to reduce parking demand. Transit Services The project site is well -served by transit within a quarter mile. Existing transit services in the study area are provided by the Santa Clara Valley Transportation Authority (VTA), the Alameda -Contra Costa Transit District (AC Transit), and Stanford University. VTA operates bus and light -rail transit (LRT) services in Santa Clara County, AC Transit operates Dumbarton Express bus routes, and Stanford University provides free Stanford Marguerite shuttles between the campus and various points of interests that serve the project area. The VTA, Dumbarton Express, and Stanford Marguerite bus and shuttle routes in the project vicinity and the bus/shuttle stops near the project site are summarized in Table 2 and shown on Figure 3. VTA Local Route 22 and Stanford Shuttle Route Shopping Express (SE) serves the project vicinity with the closest bus stops (310 feet from the project site) located on El Camino Real and Hansen Way. Caltrain The California Avenue station is approximately 0.9 mile from the project site. Although it is not within comfortable walking distance, it can be accessed via bike lanes on Park Boulevard. From the site, bicyclists could use Portage Avenue, Ash Street, and Lambert Avenue to connect to bike lanes on Park Boulevard. Although there are no bicycle facilities on these streets, these streets are low -volume streets with slow travel speeds. More advanced bicyclists may use El Camino Real and Olive Avenue. Caltrain provides frequent commuter train service between San Jose and San Francisco seven days a week, with stops at most cities in between. During the AM peak period between 7:00 and 10:00, there are five northbound trains (two limited -stop trains and three local trains) and six southbound trains (three limited -stop trains and three local trains) serving the California Avenue station. During the PM peak period between 4:00 and 7:00, there are six northbound trains (three limited -stop trains and three local trains) and six southbound trains (three limited -stop trains and three local trains) serving the California Avenue station. Bicycles are permitted on Caltrain, and there are bicycle racks and bicycle lockers available at the California Avenue station. 1 I-IXMON Page 1 5 t11 Item 15 Page 48 Packet Page 452 of 582 3265 El Camino Real Residential Development TDM Plan ITEM 15 Attachment E �Pi Califo �9� Q Avenue a Sf P,e Caltrain Ste 'on W Sao V`a \av c °a C° C a / asq LEGEND So �fh w I � J eh St aaoP 0 • tiP Rye ac C9� '9sh Sf• ' oP s>A e,� • • aa ; 06 0 22, 89, i Q' RPPM, SE �� O ,� GmV 89, lP 0104DB1 102, 02 101, Q 1 103,0!. JO 104, RPAM 22, 101, Fi / 102,103 Ca m F n''noReai ' va 22, SE a � �a day 1 O�C `� >o naa S 101, 1 22, SE �C OP 102,0. 1 / 1/103 �D J N ZC 102, cy 103 = Site Location aa� ���� = Express Bus Route �a C, yA�ess�n O` iaS = Frequent Bus Route �y = Rapid Bus Route r = Local Bus Route Ca ca = Stanford Marguerite Research Park Route D = Stanford Marguerite Shopping Express Route CD ■ ■ ■ ■ ■ ■ ■ ■ ■ = Dumbarton 1 Express Route O = Nearby Bus Stop Figure 3 Existing Transit Services uE X AG O N Item 15 Page 49 Packet Page 453 of 582 Noy S-11 ITEM 15 3265 El Camino Real Residential Development TDM Plan (' ,E2O24 Table 2 Existing Transit Service Palo Alto Transit Center - 4:15 AM - 3:00 AM Frequent Route 22 Eastridge (next day) 15-17 California Avenue Caltrain - Palo Local Route 89 Alto VA Hospital 6:30 AM - 6:15 PM 18-23 Camden and Hwy 85 - Stanford Express Route 101 Research Park 6:15 AM - 8:18 AM 55-60 South San Jose - Stanford Express Route 102 Research Park 5:47 AM- 6:47 PM 35 Eastridge - Stanford Research Express Route 103 Park 4:55 AM - 6:19 PM 60 Milpitas BART - Stanford Express Route 104 Research Park 6:07 AM - 5:39 PM 30-55 DB1 Union City BART Station - Stanford University Stanford Marguerite Shuttle2 Research Park Palo Alto Transit Center - Stanford Research Park Shopping Express Palo Alto Transit Center - San Antonio Shopping Center 5:10 AM -8:30 PM 30 6:53 AM- 10:12 AM 3:17 PM -7:02 PM 3:00 PM- 10:50 PM El Camino Real and Hansen Way El Camino Real and Oregon Expy/Page Mill Rd Hansen Way south of El Camino Real Hansen Way south of El Camino Real Hansen Way south of El Camino Real El Camino Real and Oregon Expy/Page Mill Rd El Camino Real and Oregon Expy/Page Mill Rd 17-18 El Camino Real and Oregon Expy/Page Mill Rd 60 El Camino Real and Hansen Way 310 1,790 785 785 785 1,790 1,790 1,790 310 1. Headways during weekday peak periods as of November 2023. 2. Operated by Stanford University. It provides free transportation connections between the Palo Alto Transit Center and the Stanford Research Park in the project vicinity. Bicycle Facilities The bicycle facilities that exist within one-half mile of the project site (see Figure 4) include striped bike lanes (Class II bikeway) and shared bike routes/boulevards (Class III bikeway). Bike lanes are lanes on roadways designated for use by bicycles with special lane markings, pavement legends, and signage. Bike routes are signed bike routes where bicyclists share a travel lane with motorists. Striped bike lanes are present along the following street segments: • Park Boulevard, north of Lambert Avenue • Hansen Way, for the entire street • Page Mill Road, east of Miranda Ave • California Avenue, between Hanover Street and El Camino Real Bike routes are typically designated with signs and/or sharrows (shared -lane markings). Bike routes are appropriate for low -volume streets with slow travel speeds, especially those on which motorist volumes are low enough that passing maneuvers can use the full street width, on roadways with bicycle demand but without adequate space for bike lanes, and as "gap fillers" where there are short breaks in bike lanes due to right-of-way constraints. Bike routes are present along the following street segments, according to the City's Bicycle and Pedestrian Transportation Plan (July 2012), the Mid -Peninsula Bicycle Map, and Google Earth: I -I XMON Page 1 7 Item 15 Page 50 Packet Page 454 of 582 3265 El Camino Real Residential Development TDM Plan ITEM 15 &%M ,E2024 California Avenue, east of El Camino Real Margarita Avenue, for the entire street, and Park Boulevard, between Lambert Avenue and Margarita Avenue. Caltrans began construction of the bike lanes along El Camino Real between south of SR 237 and Sand Hill Road in Spring 2024. The project is expected to be completed by Fall 2025. Pedestrian Facilities A complete network of sidewalks is present along the streets in the vicinity of the project site, including El Camino Real, Portage Avenue, Hansen Way, and Lambert Avenue. Crosswalks with pedestrian signal heads are located at the signalized intersections in the project area, except on the south leg of the El Camino Real/Portage Avenue intersection. Overall, the existing network of sidewalks and crosswalks provides pedestrians with safe routes to transit services and other points of interest in the project vicinity. NIXAGON Page 1 8 Item 15 Page 51 Packet Page 455 of 582 3265 El Camino Real Residential Development TDM Plan I vc P Go\o`a�oP c �o ` Aar�6 3 cg os' C a a vc ee�r°h o o` ac c�` 9sh S ¢, t Rd� LEGEND = Site Location = Existing Bike Lanes (Class II Bikeway) = Existing Bike Routes (Class III Bikeway) ■ • • ■ = Future Class II or Class IV Bike Lane ,. HEXAGON ITEM 15 Attachment E NY / / N A -A "/ \st/ _� P Pa� ��a o`ca g`� P °aa St �o a� wa �a O` is CyA�e y S ss N oa m Figure 4 Existing Bicycle Facilities Item 15 Page 52 Packet Page 456 of 582 NORTH Not S-11 ITEM 15 3265 El Camino Real Residential Development TDM Plan (f12024 3. Proposed TDM Measures This chapter describes TDM measures that are proposed for the residential project. These TDM measures include planning and design measures related to the attributes of the site location, site design, on -site amenities, and TDM programs. The TDM programs, including services, incentives, and actions, will encourage residents to forego a personal vehicle, lessening the parking demand on site. Table 3 presents a summary of the TDM measures in this plan. An indication of who will have primary responsibility for implementing each measure is also shown on the table. The California Air Pollution Control Officers Association (CAPCOA) December 2021 report, Handbook for Analyzing Greenhouse Gas Emission Reductions, Assessing Climate Vulnerabilities, and Advancing Health and Equity quantifies the reduction of each TDM measure by vehicle miles traveled (VMT). For this report, it is assumed that the VMT reduction percentage equals the reduction in trip generation. Based on this handbook's projections, the TDM program will exceed the required 30 percent reduction in trip generation (see Table 3). TDM Administration and Promotion Transportation Coordinator The applicant will appoint a Transportation Coordinator who will be the primary contact with the City and will be responsible for implementing and managing the TDM plan. The Transportation Coordinator will be a point of contact for residents/tenants when TDM-related questions arise and will be responsible for ensuring that residents are aware of all transportation options and how to fully utilize the TDM plan. The Transportation Coordinator will provide the following services and functions to ensure the TDM plan runs smoothly: Provide transportation information brochures to new residents (see Appendix A for example. The official brochure will be determined in coordination with the City). Provide trip planning assistance and/or ride -matching assistance to residents who are considering an alternative mode. Manage resident travel surveys. The results will be used to determine whether the implemented TDM measures are effective and whether new TDM measures should be implemented. b I -I xMoN Page 1 10 Item 15 Page 53 Packet Page 457 of 582 3265 El Camino Real Residential Development TDM Plan ITEM 15 ,E2024 Online Transportation Kiosk This TDM plan includes establishing an "online kiosk" with transportation information that residents could access from their smart phones, their homes, or anywhere else. This online kiosk will be available on the project website. By allowing someone to have all the information about transportation alternatives and TDM programs available to them in a single online location, people will be more likely to refer to this information from home. The project developer or property manager will have responsibility for setting up and maintaining this online information center. This website will include the site -specific information about all the measures, services, and facilities discussed in this plan. In addition, this online information center will include: • A summary of VTA, Caltrain, and nearby shuttle services and links to further information about their routes and schedules. • Information about ride matching services (511.org and on -site ride matching) and the incentive programs available to carpools and vanpools. • Information about services such as Uber, Lyft, and other on -demand transportation services. • A local bikeways map and bicycling resources on 511.org. • A link to the many other resources available in the Bay Area, such as Dadnab, the 511 Carpool Calculator, the 511 Transit Trip Planner, real-time traffic conditions, etc. • Carshare services, such as Zipcar. The online transportation kiosk will be developed after construction and before occupancy by the property manager. NIXAGON Page 1 11 Item 15 Page 54 Packet Page 458 of 582 3265 El Camino Real Residential Development TDM Plan ITEM 15 ,E2024 Table 3 TDM Measures and Implementation Responsibilities Program Administration Designating a Transportation Coordinator Online Kiosk/TDM Information Board 1 Transportation Information Brochures Participation in Transportation Management Association Trip Planning Assistance Transit Elements Proximity to Transit Transit Subsidy Resources (schedules, route maps & other info) Ride Matching Programs Ridematching Assistance Bay Area Carpool Program Bicycle Facilities Bicycle Parking Shared Electric Bikes Resources (bikeway maps & other info) Other On -Site Amenities Package Room High -Bandwidth Internet Connection Unbundled Parking Property Manager Transportation Coordinator Transportation Coordinator 2.3% 2 Building developer Transportation Coordinator Site Location Property Manager 5.5% Transportation Coordinator Transportation Coordinator 8% 4 Available to public Building Developer Property Manager 0.06% Transportation Coordinator Building developer -- Building developer -- Building developer 15.7% 6 Total Maximum Reduction: 31.6% Notes: 1. The building developer will have initial responsibility for creating an online kiosk and appointing the Transportation Coordinator. After the building is occupied, the Transportation Coordinator will have ongoing responsibility for the online kiosk and various program elements. 2. The VMT reduction for the program administration measures reference Measure T-23 Provide Community - Based Travel Planning from the CAPCOA Handbook. 3. The VMT reduction for the subsidized or discounted transit program measure references Measure T-9 Implement Subsidized or Discounted Transit Program from the CAPCOA Handbook. 4. The VMT reduction for the subsidized or discounted transit program measure references Measure T-8 Provide Ridesharing Program from the CAPCOA Handbook. 5. The VMT reduction for the subsidized or discounted transit program measure references Measure T -22B Implement Electric Bikeshare Program from the CAPCOA Handbook. 6. The VMT reduction for the subsidized or discounted transit program measure references Measure T-16 Unbundled Residential Parking Costs from Property Costs from the CAPCOA Handbook. Transportation Information Brochure The Transportation Coordinator will provide transportation information brochures to all new residents when they first occupy the building and ensure that residents are aware of the programs available to them. This brochure will include information about transit maps/schedules (VTA, Dumbarton Express, Stanford Marguerite Shuttle, and Caltrain), locations of bus stops and Caltrain station, ride matching NIXAGON Page 1 12 Item 15 Page 55 Packet Page 459 of 582 ITEM 15 3265 El Camino Real Residential Development TDM Plan Cfk%'",E2024 programs (511.org's RideMatching service, peer -to -peer matching apps, such as Scoop and Waze), 511.org's carpool/vanpool subsidy program, bike maps, and bicycle parking on -site. Also included in the brochure will be information regarding how to contact the Transportation Coordinator. Trip Planning Resources There are several free trip planning resources that residents may not be aware of. Information on these services will be included in the online kiosk for new residents. These include: • 511 Transit Trip Planner. Online transit trip planning services are available to the greater San Francisco Bay Area through 511.org. Users enter their starting and ending points, and either the desired starting or ending trip time. The service can build an itinerary that best suits the user's preferences for the fastest trip, fewest transfers, or least walking. • Moovit. A public transit app within the greater San Francisco Bay Area. Users enter their starting and ending points, and the service can build an itinerary that best suits the user's preferences for the fastest trip, fewest transfers, or least walking. Palo Alto Transportation Management Association (PATMA) The applicant can join the privately funded and administered Palo Alto Transportation Management Association (PATMA). TMAs are associations of businesses, property owners, tenants, and cities that offer programs and services to give commuters alternatives to driving alone. The PATMA reduces traffic and parking demand by improving commuting through free Caltrain and bus passes for workers making less than $70,000 annually, $5 per day Bike Love rewards for biking to work, and subsidized after -work Lyft ride for those commuting less than 5 miles. These programs are offered to all employees within Palo Alto. Transit Elements Proximity to Transit Services The project is located within an easy walking distance (310 feet or 1 -minute walk) from the nearby bus stops serving Route 22 and Stanford Shuttle Route SE and within 0.3 mile (about a 7 -minute walk) from the remaining bus stops. The hope is that the tenants of the development will mostly be Palo Alto Unified School District (PAUSD) employees. With that in mind, Route 22 serves the PAUSD office and Palo Alto High School on El Camino Real, approximately 1.3 miles northwest of the development (8-12 minutes bus ride from the project site). In addition, there are 3 other district schools and/or district offices that are within 0.5 miles of the bus corridor along El Camino Real and 3 additional district schools and/or district offices that are within 2/3 mile of the bus corridor (see Figure 5). If a majority of tenants are PUSD employees, it is more likely that they would utilize the transit system and forego a personal vehicle. Express Routes 101, 102, 103, 104, and Stanford Shuttle Route RP provide access to the Stanford Research Park and Stanford University. These routes would be convenient for both people who work in the nearby area and for those who want to access the convenient commercial uses. b I -I xMoN Page 1 13 Item 15 Page 56 Packet Page 460 of 582 ITEM 15 3265 El Camino Real Residential Development TDM Plan Attachment E H \ ,% LEGEND cQ Channing Ave = Site Location Q a� HarkerAve - = School Location Sfe s� Z evoFtd = Frequent Bus Route 22 dG baC° d e�je SC Em J0 = Rapid Bus Route 522 O4 = Bus Stop "1 \P4 �G / � = 1/2 Mile Zone: Bus to School 522 e �0 0 Palo Alto Za�f ° oCP, High School! Sf �� (4, P, d O PAUSD Office � O.- 101 ° 22� �as� moo °o�c P�e �a 52 O O °�a -° ys 22 ,�d God°� o Jeta O 0, 22O �°`� (° 2 9 y,. 0' i��h Sf 9hSf 9\ ' °s ti c` 5 22 \ �/p aa�eA% ev O 2 z . to - O c�QSf Q is A Esccondfao �C 2, 2 �0 �Q, �Y s��,��,• V Q- Q o Iv , Q �/ 0c cr e ® �OV cy 2 S'f erS ��� , 2 O J � / \ Nixon Elementary J0 2 ��4o 22J• schoa a °Q Re Qa Barron�Pa�Q � �� O 22 dy P,0 0�C0 a Elementary 1 O 0 Q ,� t n �scnbor Q 2? �a�e coo �m 22 erones 2. Elementary : a School Miranda Ave �" m° 22 22� Nlll Fletcher OQ Mo a � �0y� Middle ,O -� C°Vote Rd r scnool \°�P Q 22 �t �\ �e o ` 2 �h0/ Gunn P 0 F-Ipy High School CD V 22O_ Figure 5 Palo Alto Unified School District Sites HEXAGON Item 15 Pa e57 NO g Packet Page 461 of 582 NORTH Not S-11 ITEM 15 3265 El Camino Real Residential Development TDM Plan Ct'@M,E2024 Landlord Purchased Transit Passes Subsidized transit passes are an effective means of encouraging residents and employees to use transit rather than drive to work. Transit passes allow residents and employees to save money and avoid the stress of driving during commute periods. One element of this TDM plan is to provide residents with free transit passes (VTA SmartPass) to utilize public transit when commuting to and from the project site. These passes typically provide unlimited transit rides on local or regional transit providers for a low monthly fee; a fee that is lower than the individual cost to purchase a pass, since a bulk discount is given. With the VTA SmartPass program, the SmartPass is loaded on a Clipper smart card, allowing participants to also load fares from other transit agencies onto the card and use it across the San Francisco Bay Area. The SmartPass Institutional Portal allows transportation coordinators to administer the program and view usage reports. For developments with 1 — 2,999 participants, the SmartPass costs $90 per participant per year for all VTA-operated bus services except VTA express bus (2024 rate). Without the SmartPass program, the cost for an annual pass for local routes is $990 per year. With the VTA SmartPass program, the landlord pays a very low rate for 100% of its residents and employees, which gives all residents and employees a transit pass and may encourage some people to try transit who otherwise would not. Ride Matching Programs The Bay Area Carpool Program service provides an interactive, on -demand system that helps commuters find carpools, vanpools, or bicycle partners. This free car and vanpool ride -matching service helps commuters find others with similar routes and travel patterns with whom they may share a ride. Registered users are provided with a list of other commuters near their employment or residential ZIP code, along with the closest cross street, email, phone number, and hours they are available to commute to and from work. Participants are then able to select and contact others with whom they wish to commute. The service also provides a list of existing carpools and vanpools in their residential area that may have vacancies. Ride -matching assistance is also available through a number of peer -to -peer matching programs, such as Scoop and Waze Carpool, which utilize mobile apps to match commuters. These publicly available ride matching services benefit from a large database of commuters and may enable residents to locate people who may not live nearby or work on site but nevertheless share similar commute patterns. Bicycle Facilities Bicycle Parking Providing secure bicycle parking encourages bicycle commuting and reduces the need for a vehicle. The project will provide 55 long-term bike parking spaces to be covered and lockable. The long-term bicycle parking spaces will be located in the northeast corner of the site, accessible from El Camino Real and along the southern border of the site. The project will also provide 4 short-term bike parking spaces near the building entrance. N I -I xMoN Page 1 15 Item 15 Page 58 Packet Page 462 of 582 3265 El Camino Real Residential Development TDM Plan ITEM 15 ,E2024 Shared Electric Bicycles The project will include 5 shared electric bicycles for residents to use to shop at the nearby grocery stores along El Camino Real and California Avenue. The shared bicycles will be located next to the long-term bicycle parking spaces. The shared bicycles will be adequately maintained by the property. The bicycles will be replaced if they are no longer viable. The shared bikes will use a commercial bike sharing system (e.g., On Bike Share or similar) that allows for tenants to sign up using a mobile app, check out a bike, pay-as-you-go, and then return and lock. These systems track usage, location, and return. These systems also include a "mechanic app" that tracks maintenance needs. Smart Locks & Docking Rocks tA lip Custom -branded Bicycles Rider App Admin Software These systems have racks, locks, and GPS tracking to ensure that tenants avoid misuse via pay -per -use, lock the bikes while in use, and return the bikes when done using. The owner will charge a minimal hourly fee to deter abuse of the shared resource. Given the early stage, an exact price is uncertain but is expected to be less than $5 per hour (inflation adjusted over time). The system will use electronic smart locks mounted to the front of the bike. The smart locks are used to dock the bike to the rack. The smart locks use rechargeable batteries monitored by the software. The bike racks do not require any power or internet. Bicycle Resources As part of the information available in the online kiosk and bike cafe discussed above, resources useful to cyclists will be included. For example, the local bikeways map will be posted for easy reference. The following resources are available to bicycle commuters through 511.org. These resources will be noted on the project's online information center, in order to make residents aware of them. • Bicycle maps • Bicycle safety tips • Information about taking bikes on public transit • Location and use of bike parking at transit stations • Information on Bike to Work Day • Links to bicycle organizations On -Site Amenities Package Room The project will provide a package area to store residents' package deliveries. The storage will be located next to the mailbox for easy access by the carriers and the residents. Sufficient package storage space enables residents to make on-line purchases conveniently, which could reduce vehicle ownership. Having goods delivered to residents reduces trips and the need for a vehicle as residents would not have to go off -site to obtain items. NIXA60N Page 1 16 Item 15 Page 59 Packet Page 463 of 582 3265 El Camino Real Residential Development TDM Plan ITEM 15 &%M ,E2024 High -Bandwidth Internet Connection The project will provide high -bandwidth internet capability for residents. Wireless connectivity supports teleworking, which reduces off -site trips to work and the need for a vehicle. Unbundling of On -Site Residential Parking To encourage non -auto transportation methods and to reduce costs for residents, on -site residential parking will be unbundled from each living unit. Unbundled parking means separating the cost of parking from residential leases and allowing residents to choose whether to lease a parking space. This will allow residents without cars to rent a unit without having to pay for a parking spot. Parking spaces will be added to the leases only for tenants who desire parking. Unbundling of parking encourages residents to forego a second car or to have no car at all. In the project area, El Camino Real currently allows on -street parking. However, as previously stated, bike lanes will be installed along El Camino Real, with an expected completion in Fall 2025, which would remove on street parking near the project site. In addition, the Lambert Avenue cross street has overnight parking restrictions from 11 PM to 5 AM, which would discourage residents from parking their vehicles on the street. NIXAGON Page 1 17 Item 15 Page 60 Packet Page 464 of 582 ITEM 15 3265 El Camino Real Residential Development TDM Plan (' ,E2024 4. TDM Monitoring and Reporting The purpose of this TDM plan is to reduce the overall parking demand generated by the proposed residential building. The property manager/Transportation Coordinator will be required to submit to the City an annual TDM monitoring report that identifies the TDM plan's effectiveness at achieving the parking demand reduction. The initial TDM monitoring report for the project will be submitted two years after final occupancy. Subsequent reports will be prepared annually. Annual TDM monitoring reports will be prepared by a qualified third -party consultant. At a minimum, the first TDM monitoring report will be prepared by a professional transportation consultant. The property manager/Transportation Coordinator will coordinate with City staff for any additional reporting requirements. Annual resident surveys, driveway counts, and parking counts will be conducted to determine the mode split, trip generation, and parking demand among residents and whether the existing TDM measures are effective. The driveway counts will be conducted on a typical weekday (Tuesday, Wednesday, or Thursday) when schools are in session. The parking counts will occur at midnight on a typical weekday (Tuesday to Thursday), as most residents would be parked at home during that time. The survey will include questions to the residents around their vehicle parking locations and frequency of driving to work in order to determine the parking demand. An example is provided in Appendix B; however, the actual survey will be determined in coordination with the City. There is no required percentage of participation for the survey; however, monitoring reports typically strive for maximum participation. The annual resident survey must include a question to the residents about their vehicle parking locations in order to determine whether spillover parking is occurring. This will be assessed by comparing the parking count/parking demand and parking provided at the site. The goal is to ensure that the parking demand is less than or equal to the parking supply. Additional TDM measures will be necessary if spillover parking occurs. If the report indicates the project is not effective in reducing parking demand, the report will outline additional measures that must be adopted in the coming year to achieve the goal, along with an implementation schedule. The annual report to the City will also include a brief summary of the TDM measures that were in place during the preceding year, with an explanation of any changes or new programs. Additional TDM measures could include, but are not limited to, the following: Financial subsidies for car share membership for residents, and Subsidize rideshare trips by site residents. I I -I xMoN Page 1 18 Item 15 Page 61 Packet Page 465 of 582 3265 El Camino Real Residential Development TDM Plan ITEM 15 C'0,E2024 The individual preparing these reports to the City should coordinate with City staff on the City's reporting requirements. HIXAGON Page 1 19 Item 15 Page 62 Packet Page 466 of 582 ITEM 15 Attachment E Appendix A 3265 El Camino Real Commuter Flier Example Item 15 Page 63 Packet Page 467 of 582 ITEM 15 Attachment E 3265 El Camino Real Commuter Resources TRANSIT & SHUTTLES VTA Caltrain SamTrans Transit Planner Tool Free Transit Passes (income eligible) VTA Bus Routes Route 22 Express Route 101 Express Route 102 Express Route 103 Rapid Route 522 f Additional Service Routes Stanford Marguerite SE Dumbarton Express DB SERVICES & INCENTIV/Fc, , Free Guaranteed Ride Home program Free Lyft for Late -Night trips Commute Planning Bay Area Spare the Air Alert Notices RIDE HOME COMMUTE SILICON VALLEY BICYCLE COALITION Valley Transportation Authority CARPOOL & VANPOOL Carpool Savings Calculator Bay Area Carpool Program — online carpool matching $500 monthly 511 Vanpool Group Subsidy $400 monthly VTA Vanpool Group Subsidy (combine 511 and VTA vanpool subsidies and receive a $900 monthly group benefit.) �ICYCLE Secure bicycle storage in the garage Bicycle Resources Bike Love Program - $5 per day PiL' +n \A/nrL' Bikes on Transit Palo Alto Bike Map Santa Clara County Bikeways Ma San Mateo County Bike Map San Francisco Bay Trail Silicon Valley Bicycle Coalition samTrans 1 59)SF Bay M ITEM 15 Attachment E Appendix B Residential Survey Example Item 15 Page 65 Packet Page 469 of 582 ITEM 15 Attachment E 1. Do you own/lease a car? o Yes o No 2. Do you park on the property? o Yes o No 3. Are you able to always find parking on the property? o Yes o No 4. What method of transportation do you typically use to go to work/school? o Car o Bike/Walk o Public Transportation (Bus, Train, Light Rail, etc.) o Carpool/Vanpool o Ride -Share Services (Uber, Lyft, etc.) o I typically work from home or don't work/go to school o Other (Please Specify) 5. What method of transportation do you typically use to go to other points of interest (grocery, entertainment, etc)? o Car o Bike/Walk o Public Transportation (Bus, Train, Light Rail, etc.) o Carpool/Vanpool o Ride -Share Services (Uber, Lyft, etc.) o I typically work from home or don't work/go to school o Other (Please Specify) 6. Do you use the shared electric bikes provided by the property? o Yes o No • If No, why not? Item 15 Page 66 Packet Page 470 of 582 ITEM 15 Attachment E 7. Do you use the free transit pass provided by the property? o Yes o No o Unaware of the transit pass • If No, why not? 8. Is there anything preventing you from taking public transportation to work/school? o I already take public transportation o I bike/walk to work/school o There are no public transportation options to/from my work/school o Public transportation takes too long o Other (Please Specify) 9. What would encourage you to use an alternative to driving alone? 10. Which of the transportation resources provided by the property are most helpful to you? Item 15 Page 67 Packet Page 471 of 582 ITEM 15 Attachment E HEXAGON TRANSPORTATION CONSULTANTS, INC. Memorandum C'' I Date: October 29, 2024 To: Jason Matlof, Half Dome Capital, LLC From: Kai Ling Kuo, Jocelyn Lee 11 I Subject: Parking Garage Circulation and Queue for 3265 El Camino Real in Palo Alto, ® California -O- • oi; Hexagon Transportation Consultants, Inc. has completed a review of the parking garage circulation for the proposed affordable housing project at 3265 El Camino Real in Palo Alto, California. The project would demolish the vacant building and construct 55 residential units in a 6 -story building with 31 parking spaces (30 stacker parking spaces and 1 ADA parking space) on the ground level of the building. Vehicle access to the parking garage would be provided via a driveway/garage door on El Camino Real. The study evaluates whether passenger vehicles can access the parking spaces without maneuvering issues within the garage, specifically for the parking space located along the north edge of the site and the drive aisle. The queues were also evaluated to determine if it would have an effect on on -street and on -site circulation. The project would provide a 23'-8" drive aisle. Per the Palo Alto Municipal Code, Section 18.54.070 Table 3, the City typically has a standard drive aisle of 25 feet for 90 degree parking with standard 8.5 -foot wide stalls. The stacker parking spaces are 8.2 feet wide and 18 feet long. Therefore, the analysis is based on turning templates for a Honda Accord (16.5 feet long), which represent most mid -size and full-size passenger vehicles (14 to 17 feet long). While mid and full-sized vehicles can access parking spaces in all 8 parking columns, some columns will be easier than others. Specifically, tighter accessibility in the 7th and 8th columns mean that tenants assigned to those parking spaces will not be able to back their cars into the parking system in a reverse direction, and more turns will be required to enter the system to enter in the forward direction (see Figures 1 and 2). Consequently, the Owner/Developer will assign tenants with mid -sized vehicles to these (7th and 8th column) parking spaces to ensure that tenants with larger vehicles will have access to the spaces with a less restrictive turning radius (1st through 6th column). The project would provide a garage door at the garage entrance. Generally, adequate stacking space for one to two inbound vehicles (approximately 20 to 50 feet) should be provided between the sidewalk and any entry gates, on -site drive aisles, or on -site perpendicular parking spaces. This prevents vehicles from queuing onto the sidewalk or the street. The garage door to the parking garage is shown to be approximately 7 feet from the sidewalk and 14 feet from the curb. This would not provide enough room for one inbound vehicle. The garage door is expected to take 10 to 14 seconds to open. Therefore, residents accessing the parking garage would block the sidewalk briefly while waiting for the garage door to open. Although the inbound volume would be low (9 PM inbound trips during the peak hour), the project should install a speed garage door or keep the garage door open during the PM peak hours to ensure that the travel lane on El Camino Real is not blocked. On -site vehicle queuing for outbound vehicles could potentially occur due to the security gate, a combination of the inherent unpredictability of vehicles exiting the site, and the random occurrence 100 Century Center Court, Suite 501 • San Jose, California 95112 • phone 408.971.6100 • fax 408.971.6102 • www.hextrans.com Item 15 Page 68 Packet Page 472 of 582 ITEM 15 3265 El Camino Real Parking Garage Circulation 2024 of gaps in traffic along El Camino Real. However, given the estimated 11 AM outbound trips during the peak hour at the driveway, which calculates to about one outbound trip every five minutes, the probability of two or more outbound vehicles exiting the site at the same time would be low. In addition, the parking stackers would have a 60- to 90 -second delay between cars exiting and being delivered. Thus, the outbound vehicle queue is not expected to affect on -site circulation. � NEXA60N Page � 2 �i Item 15 Page 69 Packet Page 473 of 582 ITEM 1 Attachment g o w „o,os y O m N :i - ______ Z_ T'11 inNove Hid 9 s H w Z H�. O B r py N a w W LLI 0 ZC�U J a Q�z II. 0 w0� V Maz 00 r D E `l' Iccynn D P8 E 10Vds NVA 1USS0V3IDHVH3A) ® m Z c o v a z v+ fl—iJ1 cQe = Qr o s'm >= LJJ O t rg N a ICI' O III N N O II N -L W J W U < O J Z y U Q LU Item 15 Page 70 Packet Page 474 of 58 0 L) ITEM 1 I Attachment \ „o-,oe O IUUUL - wo - ________________ m N N _____________________ 4B1'dNO3 F W - _____ 1'''['''1U'' U ~ i nM VJ O � T A Z rag N 2 O� �i LLJ N LN O JOJd W W o�w ≥off _ a N a LLI WLU 9w ZCDZ U ,/ cc z cn J ,`N >zNKm+n. UZ)Z) O Z i < O 0 J LLI = ❑ LO LU Z J N �min x.a•.r m Q C)Qm SLSSX00SZ= a 0 ° �•ns min x.a•.r 0 £'l LL SLSSX0052 pAsmm., ////4; 0.8 LIHIHI4I30VdSNVn �Ni�avH3 n3 i O G Q YN p 8m ori r) N w� ij I-LN .. O tea, as a O = O = O N O N \ W J W U Q U � J Z y U Q W Item 15 Page 71 Packet Page 475 of 58 0 C) ITEM 15 Attachment F SOUTH EL CAMINO REAL DESIGN GUIDELINES Address/File #: 3265 El Camino Real [24PLN-00012] This checklist provides a summary of the South El Camino Real Design Guidelines in conjunction with the 1979 Council - adopted El Camino Real (ECR) Design Guidelines, and the proposed project's consistency. Proposed Project Guiding Principles is/has: needs: 1 Within a pedestrian node (California Av., Barron -Ventura or Triangle at El Camino Way) N/A 2 A 12' sidewalk (curb face to building) with trees, planters and seating X 3 Built with the front wall (building face) located at the back of the sidewalk x 4 Outdoor seating and dining, where appropriate x S A minimum height of25 feet (2 and 3 -story building) to reinforce the street's importance X 6 An entry or entries facing El Camino Real, so the building is oriented to the street X 7 On a street corner, incorporate special features to highlight building N/A 8 Facades that animate street: doors and windows, arcades, awnings, balconies, stairs X 9 Flat roofs and parapets to create cohesive streetscape X 10 Facades that have clearly expressed bases, bodies and roofs or parapets. X 11 Scale and presence proportional to the scale and importance of El Camino Real X 12 Adjacent to residential neighborhood, variations in scale, articulation, setbacks N/A Site Planning and Landscape Design Concepts is/has: needs: Node Area projects: 15 At least 75% of building face is at ECR setback line/build-to-line N/A 16 On a corner, building occupies 50% of side street frontage N/A Corridor Area projects (Cal Ventura, Hotel Area): 18 At least 50% of building face is at ECR setback line/build-to-line X 19 On a comer, building occupies 33% of side street frontage N/A Increased setbacks: (more than the build -to -line) 21 An increased setback that does not exceed 20 feet of the property frontage length N/A 22 Public amenities (wider sidewalk, outdoor seating or dining) X Curb cuts and parking lots 24 A minimized curb cut width X 25 An extension of sidewalk material and width across driveways X 26 Sharing driveway with adjoining property N/A 27 Using alley access or side street access to parking lot N/A 28 Parking lot no more than 50% of ECR frontage, no more than 120' x X Usable Open Space Amenities Item 15 Page 72 Packet Page 476 of 582 ITEM 15 Attachment F 30 Attractive and functional plazas, seating and activity areas X 31 Canopies and covered trellises X 32 Careful treatment of property edges and spaces between buildings X Item 15 Page 73 Packet Page 477 of 582 ITEM 15 Attachment F Landscape and Hardscape 33 Extensive planting and the use of other landscape amenities to create "outdoor rooms" X Site Lighting 34 Emphasize pedestrian path and safety, minimize glare X 35 Use variety of fixtures that are integrated into buliding/landscape design X Alleys 37 Windows and doors oriented toward alley N/A 38 Service facilities screened with enclosures N/A 39 Durable, attractive garage doors, entry doors, windows N/A 40 Lighting directed to not impact adjacent properties N/A Building Design Concepts is/has: needs: 42 An articulated base, body and roof/parapet X 43 Building facade reinforces the street X 44 Facades parallel to right of ways X 45 Exceptions to front or side daylight plane requirements N/A 46 Design consistency on all facades X 47 An articulated facade rather than a merely decorative or false front X 49 Recessed entry arcades X Awnings 51 Spaces to gather or retreat x 52 Habitable space in front of parking X Windows 54 Inset/trimmed windows X 55 Display windows x 56 Transparent doors and windows along at least 75% of ground floor ECR facades x 57 Transparent windows along at least 50% of upper level ECR facades X Rooflines 59 Prominent cornices and rooflines that detract from architectural style X Item 15 Page 74 Packet Page 478 of 582 ITEM 15 Attachment F 60 A flat roof and/or a roof form reflecting facade articulation X 61 Parapet hides rooftop mechanical equipment X Materials 63 Durable, high quality materials to convey integrity, permanence and durability X 64 Materials integral to facade and structure, not arbitrarily applied X Item 15 Page 75 Packet Page 479 of 582 ITEM 15 Attachment F Signage is/has: needs: 66 Sign colors limited as set forth in 1979 El Camino Real Design Guidelines N/A 67 Sign area limited to 2/3 of the maximum sign area per PAMC (1979 ECRDG) N/A 68 Integrated into building facade N/A 69 Individually formed letters (no sign cabinets) N/A 70 Window sign coverage no greater than 20% maximum N/A 71 No new pole signs N/A 72 Monument signage only when no feasibility for wall signs on building N/A 73 Wall wash lighting or halo lighting ("reverse pan channel letters")/backlighting of signs N/A 74 Colors that coordinate with building colors (no florescent or very bright colors) N/A Item 15 Page 76 Packet Page 480 of 582 ITEM 15 Attachment F Comments Site is a corridor area Existing street tree will remain; additional short term bike parking provided in furniture zone. 100% of frontage is built to back of sidewalk Not feasible given narrowness of the site Proposed building is 79 feet tall Main entrance faces El Camino Real Not located at a corner The facade includes primary and secondary entries on El Camino Real to activate the street The proposal includes roof parapets that frames the building to El Camino Real The proposal incorporates all three elements into the design The proposed scale is consistent with what is expected along El Camino Real in context with the standards allowed under the El Camino Real Focus Area and NVCAP provisions The property isn't adjacent to a residential neighborhood Site is a corridor area Not located at a corner 100% of frontage is built to back of sidewalk Not located at a corner Built to front setback Expanded sidewalk and short term bike parking provided in sidewalk Only one curb cut is provided on ECR Applicant will provide Site does not share a driveway with adjoining lots Access is not provided to the site via an alley. Parking is provided inside building in garage Item 15 Page 77 Packet Page 481 of 582 ITEM 15 Attachment F Seating and activity areas in the front of the property is not feasible given the narrowness of the site Seating and activity areas in the front of the property is not feasible given the narrowness of the site The edges and spaces between buildings have been treated to ensure that the massing does not overwhelm adjacent structures and that the quality of the design is consistent across all facades Item 15 Page 78 Packet Page 482 of 582 ITEM 15 Attachment F The existing street tree will remain. Additional landscaping is provided along the front within the landscape/furniture zone Lighting is provided at the entry on El Camino Real to encourage pedestrian use. Most lighting is provided on site and at the roof terrace to minimize glare Pedestrian scaled lighting is provided at the entry and walkways throughout the site The site is not serviced by an alley The site is not serviced by an alley The site is not serviced by an alley The site is not serviced by an alley The proposal incorporates all three elements into the design The proposed scale is consistent with what is expected along El Camino Real in context with the standards allowed under the El Camino Real Focus Area and NVCAP provisions The proposal incorprates this element into the design Does not abut residential uses which would require a daylight plane The design is cohesive on all facades of the building The front facade includes projecting bay windows to articulate the facade The expected use of the site would be an office where access would be limited. The ARB was previously open to creating pedestrian amenities, such as benches, rather than requiring other retail or retail -like uses on site to approve this application. Seating and activity areas in the front of the property is not feasible given the narrowness of the site Parking is provided inside building in garage The bay windows at the front facade have a clear and consistent trim pattern around them that is visually interesting and supports the architectural expression of the building. The proposed residential building does not have a ground floor retail space. The ground floor will have windows to signal habitation towards the building This is more appropriate for a commercial use whereas the building is 100% residential. The primary facade include windows which will introduce visibility into the building at a higher level than the ground floor The building does not have a prominent roofline that would detract from the architectural style Item 15 Page 79 Packet Page 483 of 582 ITEM 15 Attachment F The proposed roof line is subdued such that it allows the other articulations on the building to stand out with the design. Even though it is subdued, it is integrated well into the design to provide a clear top element to the structure. The section drawings indicate the the proposed parapet will hide the anticipated mechanical equipment for the structure. The proposed materials and integration into the design satisfy the City's high quality architectural review findings The varied materials and articulations on the building are well composed which results in a coherent and aesthetically pleasing design Item 15 Page 80 Packet Page 484 of 582 ITEM 15 Attachment F I Signage will be proposed in a future application. Item 15 Page 81 Packet Page 485 of 582 ITEM 15 Attachment G From: Shaw Tachavirat To: Sauls. Garrett Subject: 3265 El Camino Real Date: Wednesday, April 10, 2024 3:09:06 PM IYou don't often get email from stachavirat@gmail.com. Learn why this is important CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. Dear Mr. Sauls, I am writing on behalf of Cambert Holdco LLC and my business partners, Lykieng Tachavirat and Sam Tachavirat. Cambert Holdco LLC owns the commercial property in Palo Alto at 3295 El Camino Real, operated by Indo Restaurant. We have become aware of the rezoning proposed by our recent neighbor, Half Dome Capital LLC, to potentially develop 44 apartment units at 3265 El Camino Real, the 7,500 sf parcel to our southwest, at more than 5.8 times the allowed density. We are opposed to this project as proposed. With zero setback from two of our parcels, Half Dome's current design would be impossible to construct or maintain without entering our land or requiring an easement which we will not grant. Therefore, we ask that the plans be revised accordingly. We also note that we have not reviewed the proposed plans in detail and may have further future comments should this project move forward. More generally, we ask that the City consider honoring the Minimum Open Space and Maximum Site Coverage requirements to the extent possible, as we believe ignoring these important features is not the answer to increasing housing supply. Respectfully submitted, Shaw Tachavirat, Manager Cambert Holdco LLC Item 15 Page 82 Packet Page 486 of 582 September 8th, 2023 ITEM 15 Attachment G Dear Honorable Mayor Kou and councilmembers, The League of Women Voters of Palo Alto strongly recommends that the City encourage the applicant's proposal to develop 100% rent -restricted housing for teachers at 3265 El Camino Real. Our comments are based on our League's local housing position which supports actions by the City of Palo Alto that improve the diversity of housing opportunities for all economic levels, ages, and ethnicities and which ensure that all housing is open to everyone without discrimination, and on state and national League policies: • Housing and Homelessness • Meeting Basic Human Needs Our city suffers from an extreme shortage of housing available for low and moderate income households, as high land prices, construction costs, the absence of adequate and/or available public or private financing, and land use policies that force developers to focus on luxury homes. This private developer proposes to help alleviate the shortage of housing affordable to teachers by constructing studio and one -bedroom units in an area well -served by public transportation and near bicycle routes. Significantly, without precedent for 100% below market units, no outright public subsidies are being requested (other than a relaxation of land use regulations). We urge the City to act so that this project remains economically feasible. The benefits of encouraging this project are many. Teachers' unions support this proposal. Local housing for teachers will eliminate hours -long commutes, help reduce greenhouse gas emissions, and help restore the city's economic diversity. It will also improve the quality of life in our community by having our essential teachers live where they work. Thank you for your consideration of the League's point of view. Respectfully, Nancy Shephard and Judy Kleinberg Co -Presidents, League of Women Voters of Palo Alto League of Women Voters of Palo Alto 3921 E. Bayshore Road Palo Alto, CA 94303 Phone: (650) 903-0600 Web: www.lwvoaloalto.org Facebook: www.facebook.com/PaloAltoLeaaue/ Twitter: www.twitter.com/lwvoaloalto oalto Item 15 Page 83 Packet Page 487 of 582 ITEM 15 Attachment G SUBJECT: PAUSD Housing Proposal at 3265 El Camino Real Dear Honorable Mayor Kou and Council Members: We write in support of the project at 3265 El Camino Real that is prioritized for union member employees of the Palo Alto Unified School District (PAUSD). We, Jennifer DiBrienza and Jesse Ladomirak, serve as the President and Vice President of the PAUSD Board of Education, respectively. We speak as Palo Alto residents who strongly support this new housing development. Mr. Matlof worked directly with PAUSD's bargaining units throughout the process. I trust our union leadership when they tell us these units are desired by their membership and can be filled at the designated rents. Our entire school district benefits when we reduce stress on our staff. Living closer to our schools will help educators support PAUSD students in a variety of ways. More significantly, it will improve their quality of life by reducing their commutes and giving them more time with their families. This generous project is an outstanding opportunity to make a small dent in the thousands of housing units Palo Alto must add. It is housing for some of the hardest workers in Palo Alto, near transit, jobs, and services - which will reduce cars on the road and greenhouse gas emissions. It's a win for all of us. Please fast track this and make it happen! With Regards, Jennifer DiBrienza Jesse Ladomirak Item 15 Page 84 Packet Page 488 of 582 ITEM 15 Attachment G Subject: Affordable Housing Project for PAEA Members at 3265 El Camino Real Dear Mayor Kou and Council Members, The Palo Alto Educators Association (PAEA) would like to express our strong support for the affordable housing project located at 3265 El Camino Real, which will prioritize vacancies for members of the PAUSD employee unions (PAEA and CSEA). Educator housing has been something I have been passionate about since I moved to California to work at for the school district 23 years ago and I could not afford to live close. The PAEA has partnered with Mr. Matlof and Half Dome Capital on this project, and we are so excited about the potential housing that it will bring to our members. Our Executive Board has heard from many of our 850 teachers about the need for affordable housing in this area. The vast majority of our teachers cannot live in the community we serve. As median income earners, we earn too much to qualify for low-income housing, but not enough to afford market -rate rents, let alone payments on a purchase. Even with newly constructed apartment complexes adding to the housing supply in the area, typical rent can exceed half of the monthly take-home salary of an experienced teacher. Palo Alto is known for its excellent schools and education, but the fear is that we are going to lose great teachers and struggle to recruit new ones because teachers can't afford to live in this area. We have teachers who commute from Gilroy, Morgan Hill, Aptos, and Dublin (to name just a few places). This long commute takes a toll on our teachers' quality of life and decreases the value of their salaries. It also adds to traffic and pollution problems in the county. When teachers live in or near their school communities, students also benefit. We want to be part of the community we teach in. We want to organize or attend after -school events and support and encourage our students. When a teacher has a commute that can exceed an hour each way, such participation in the life of a school community is much more difficult. The Palo Alto Educators Association strongly supports this teacher housing project, and we urge your approval. Sincerely, Teri Baldwin Teri Baldwin, President Palo Alto Educators Association Item 15 Page 85 Packet Page 489 of 582 ITEM 15 Attachment G PALO ALTO •• FORWARD September 10, 2023 SUBJECT: Agenda Item #2 - 3265 El Camino Real, Palo Alto Dear Mayor Kou and Honorable Council Members, We write in strong support of the proposed 44 -unit affordable housing development on a vacant lot at 3265 El Camino Real, including the reasonable exceptions to the Zoning Ordinance and design standards being requested through the Planned Home Zoning (PHZ) process. In addition to helping meet our Regional Housing Needs Allocation numbers, construction of 44 affordable units for local teachers with ZERO public funding or subsidies is a win for our city. Students benefit when their teachers live in the community and can dedicate their intellectual and emotional energy to teaching, without having to endure long and expensive commutes each day. Districts can attract and retain the best employees when affordable housing like this is available. The project site is the perfect location for housing with its proximity to California Avenue retail and services, area transit and bikeways, and local schools. This type of housing directly helps our environment (with lowered vehicle miles traveled), economy (more residents to shop locally consistent with recommendation #10 from the City's Economic Development Strategy), and equity (housing at all income levels makes for a stronger community where people thrive). We also fully support the reasonable zoning and design deviations being requested by the project as part of this PHZ process. Consistent with the City's Economic Development Strategy, the City is over -retailed already and more retail at this location does not make sense at the site. The parking that will be provided is adequate to meet the project needs given its location near major transit stops, Caltrain, local schools, services, and retail. Please allow for this project to move forward and allow our city to demonstrate our commitment to creating housing (and especially affordable housing for our teachers) a priority. As recommended in the Santa Clara County Grand Jury Report on Housing from December 16, 2021, we urge you to expedite the review process for housing projects that include Below Market Rate units (Recommendations 9a, 9b, 10a, 14) - such as the proposed project. Sincerely, Palo Alto Forward Item 15 Page 86 Packet Page 490 of 582 ITEM 15 Attachment G The Academy Affordable Housing Project for CSEA Members 3265 El Camino Real December 11th, 2023 Mayor Kou and Distinguished Members of the City Council, My name is Meb Steiner and I am the President of the California School Employees Association, Palo Alto Chapter #301, a 20 -year employee of the Palo Alto Unified School District (PAUSD), and a 50+ year resident of Palo Alto. I am writing to you in support of the proposed affordable housing project prioritized for PAUSD employee union members that is located at 3265 El Camino Real. I support this proposal because the need for affordable housing close to work is real. We all understand this. I was proud to be part of the phenomenal public/non-profit/private partnership that created the successful multi -district employee housing project at 231 Grant Avenue. I want to congratulate Mr. Matlof and Half Dome Capital for recognizing the need and bringing forward this standalone, for-profit affordable housing project proposal for members of our school district employees. CSEA represents all staff at our school districts other than our teachers and administrators. Classified employees and their roles are critical to the District's mission and vital to supporting our students. Often times, our members work multiple jobs and many commute from long distances. The opportunity to find affordable housing proximate to their PAUSD jobs would be a huge benefit. I would ask you to please support this affordable housing project proposal. Please contact me with any questions or for further information. Respectfully, M16 Meb Steiner President California School Employees Association, Palo Alto Chapter #301 mpvsteiner@yahoo.com Item 15 Page 87 Packet Page 491 of 582 ITEM 15 Attachment H TRACHTENBERG ARCHITECTS 2421 Fourth Street Berkeley, CA 94710 phone: 510.649.1414 www.TrachtenbergArch.com August 29, 2024 Planning Division City of Palo Alto 250 Hamilton Ave, 5th Floor Palo Alto, CA 94301 Project Description for 3265 El Camino Real This 100% affordable new multi -family housing project consists of a 6 -story development with 55 dwelling units and ground level lobby and 31 parking spaces. First priority for all vacancies will be given to the educator members of the Palo Alto Educator Association (PAEA) and California School Employees Association (CSEA, Palo Alto Local Chapter #301) through existing partnership agreements. This project would provide a quality infill development on an empty and underutilized site, which is located on a major arterial street, El Camino Real, with close proximity to restaurants, shops, and transit located along both California Avenue and El Camino Real. It would also contribute much needed new housing to the city's stock. The site is in a transitional zone between residential neighborhoods and commercial development - importantly, more than 500' distance to the nearest residentially zoned parcel. The project scale and housing use are appropriate for the site in this transitional zone, and the design of the project establishes an urban infill development appropriate for El Camino Real frontage. The design intent for the building is to have a contemporary appearance that exemplifies the current time and relates to the surrounding context along El Camino Real. Being an urban infill project with higher density will ensure the project is relevant with the future projects developing along this corridor. The scale and pattern of the window openings, the pop -out bay windows at the front facade, and Juliet balconies reinforce the residential design of the project. The material palette consists of traditional materials, like stucco and metal panels, in a warm neutral color scheme to complement the surrounding context. This application is submitted under the City's Planned Home Zoning (PHZ) process that motivates developers to offer community benefits in the form of minimum 20% affordable housing in exchange for exceptional entitlements granted by the City that would otherwise make the project economically nonviable. The project proposes to maximize community benefit at 100% affordability targeted for our critically important teacher community. The project is providing a PHZ weighted affordability rating of 75.3% according to Option #2 of the PHZ guidelines. Seventy-five percent is substantially higher than the City's minimum threshold of 20% weighted affordability, and results from 75% of units at Moderate Income (weighted at 0.6) plus 25% of units at Low Income (weighted at 1.2). Further, the principal/owner, Half Dome Capital LLC, has agreed to limit affordable rents for the Low Income units at 70% and the Moderate Income units at 110% of SCC AMI, instead of the traditional City standard of 80% and 120% of SCC AMI respectively. Item 15 Page 88 Packet Page 492 of 582 ITEM 15 Attachment H First priority for all units will be provided via advanced notification to our partners at the PAUSD educator and classified employee unions, who will have 10 business days to provide a prioritized list of prospective applicants that will be screened and income -qualified by management (first priority will be given to PAEA members and then to CSEA members). If there are no prospective tenants on the wait list for housing at either of these organizations who qualify, then management will conduct public marketing to identify income -qualified applicants. If you have any questions or comments, please feel free to contact me at (510) 649-1414 x124. Sincerely, Isaiah Stackhouse, Principal TRACHTENBERG ARCHITECTS Item 15 Page 89 Packet Page 493 of 582 ITEM 15 Attachment I Attachment Project Plans Project plans are available to the public online. Hardcopies of the plans have been provided to Commission members. Directions to review Project plans online: 1. Go to: bit.ly/PApendingproiects 2. Scroll down to find "3265 El Camino Real" and click the address link 3. On this project specific webpage you will find a link to the project plans and other important information Direct Link to Project Webpage: https://www.cityofpaloalto.org/Departments/Planning-Development-Services/Current- Planning/Projects/3265-EI-Camino Item 15 Page 90 Packet Page 494 of 582 ITEM 16 City Council Staff Report From: City Manager CITY O F Report Type: INFORMATION REPORTS PALO Lead Department: Administrative Services ALTO Meeting Date: February 10, 2025 Report #:2412-3887 TITLE Semi -Annual Report of Contracts Awarded by the City Manager, Procurement Officer or Other Designated Employees for the period of July 1, 2024 through December 31,2024 ;CEQA Status - Not a Project. RECOMMENDATION This is an informal report, no action is required DISCUSSION Palo Alto Municipal Code (PAMC) Section 2.30.710(a) requires the City Manager to provide a semi-annual report to Council consisting of contracts awarded by the City Manager, Procurement Officer or other designated employees for: 1. Goods contracts $85,000 through $250,000 per year (Attachment A), and 2. Professional and General Services $25,000 through $85,000 and Public Works Contracts $85,000 through $250,000 per year (Attachment B). The contracts in Attachment A consist of twelve (12) distinct awards for goods, and the contracts in Attachment B consist of sixty-two (62) distinct awards for a wide range of services These awards are a core element of the efficient and effective provision of services by the City to our community and reflect extensive coordination and prudent decision -making. For informational purposes, Attachment C provides excerpts from the PAMC that set forth the authority designated by Council to the Procurement Officer to award and sign contracts (PAMC 2.30.200) and City Manager to award and sign contracts (PAMC 2.30.210). ENVIRONMENTAL REVIEW This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably foreseeable indirect physical change in the environment. Item 16 Page 1 Packet Page 495 of 582 ITEM 16 retitr_t�aIITiA�1y Attachment A: Goods Contracts Awarded $85,000 through $250,000 per year Attachment B: Professional and General Services $25,000 through $85,000 per year and Public Works Contracts $85,000 through $250,000 per year Attachment C: Excerpts from the Palo Alto Municipal Code APPROVED BY: Lauren Lai, Administrative Services Director Item 16 Page 2 Packet Page 496 of 582 ITEM 16 Attachment A a) Q 0 O N O N EA m m o E C a) O 4) O O c c aD 0 a w m Er a) N 3 O <(N N U T N � c � 0 0 0 0 0 CO v CO 4 -6 U C 0 m o N a a) +U+ . CO C 0 < O N w to M u y N 00 O aJ EC a1 N C 0 � a) N . 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C 0 (o C .2 Q E h Q O u Y U, C 0 U C C C bA N N 0 0•2• 0 m ≥ C E O u m N L N N xw i E C Q CD =a Z vi • * o N 3 O M A 1= C Q ai � N "a O (N f6 (D Q O 0 I- 0 UJ 0 U 0 0 V U Z_ K w Z w w } 0 CO N O) (D d Item 16 Page 6 Packet Page 500 of 582 ITEM 16 Attachment C ATTACHMENT C Excerpts from the Palo Alto Municipal Code Chapter 2.30- Contracts and Purchasing Procedures Item 16 Page 7 Packet Page 501 of 582 2.30.360 Exemptions from competitive solicitation requirements. p� ITEM 16 The following are exemptions from the informal and formal competitive solicitation requirements of this c�&Pfp�as otherwise provided. These exemptions will be narrowly interpreted and applied. The department requesting an exemption shall provide all relevant information supporting the application of the exemption to the Procurement Officer. Based upon this information, the Procurement Officer shall make a recommendation to the City Manager and the City Manager shall determine whether an exemption from the competitive solicitation requirements applies. Nothing herein is intended to preclude the use of competitive solicitations, as practicable. (a) Emergency Contracts, provided that any procurement of goods and services obtained during an emergency declared by the Federal Emergency Management Agency shall comply with applicable FEMA Public Assistance Program's orders, rules, regulations, guidelines and control procedures for cost reimbursement purposes. (b) Whenever solicitations of bids or proposals would for any reason be impracticable, unavailing or impossible, provided that in the case of a public works project, the project is not otherwise required by the charter to be formally bid. These situations are those where solicitations of bids or proposals would not be useful or produce any operational or financial advantage for the city. Situations where solicitations of bids or proposals would be impracticable, unavailing or impossible, include, without limitation, the following: (1) Contract specifications cannot be drawn in a way that would enable more than one vendor, consultant or contractor to meet them; (2) Due to circumstances beyond the control of the city, the time necessary to use the competitive solicitation process, procedures and requirements would result in a substantial economic loss to the city or the substantial interference with a required city operation; (3) Special conditions attached to a grant, donation or gift requires the use of particular goods and/or services. All requests for exemptions under this subsection shall be supported by written documentation (facsimile or electronic mail may be used), approved by the department head and the Procurement Officer. (c) Where competitive bids or requests for proposals have been solicited and no bid or proposal has been received, or where no bid or proposal meeting the requirements of the invitation to bid or request for proposals has been received, provided that, in the case of a public works project, the project is not otherwise required by the charter to be formally bid. (d) Contracts for goods, wholesale commodities and services, general services or professional services available from only one source, where the Procurement Officer has determined, in writing, there is no adequate substitute or equivalent provider. Examples of acceptable sole source acquisitions or purchases may include, without limitation: equipment or services for equipment, for which there is no comparable competitive product or service except that provided by the equipment manufacturer, distributor or dealer; proprietary products sold directly by the manufacturer; a component or replacement part, for which there is no commercially available substitute and which can be obtained only from the manufacturer; goods where there is only one authorized distributor in the area; and goods where compatibility with goods in use by the city is an overriding consideration. All requests for sole source acquisitions or purchases shall be supported by written documentation (facsimile or electronic mail may be used), approved by the office or department head, and forwarded to the Procurement Officer. (e) Contracts for goods where, pursuant to Section 2.30.900, the City Manager has determined that standardization of the supplies, materials or equipment is permissible. (f) Placement of insurance coverage and surety bonds. (g) Legal services contracts, including, without limitation, the services of outside counsel, consultants and other experts needed for litigation, administrative or other legal proceedings. (h) Professional services contracts for private development related studies and services whenever the services are funded wholly by private developers. (i) Professional services contracts, where the estimated total expenditure by the city, regardless of term, does not exceed $50,000.00. Q) Cooperative purchases, with one or more other public agencies or through a cooperative purchasing agency, provided: (i) the services are solicited using methods substantially similar to those required by this chapter, as determined by the Procurement Officer; and (ii) the contract is consistent with the requirements specified in this municipal code. (k) The use of another governmental or public agency's contract or substantially the same contract terms provided: (i) the agency uses a solicitation method substantially similar to the method required by this chapter; (ii) the contract is consistent with the requirements specified in this municipal code; and (iii) the Procurement Officer determines that the city will realize overall value to utilizing the other agency's contract or contract terms compared to the city performing its own solicitation. (I) Contracts with, or solicited on the city's behalf by, Northern California Power Agency, Transmission Agency of Northern California, and Western Area Power Administration to procure wholesale utility commodities and services that meet the requirements of Section 2.30.340(d) or 2.30.360(k). (m) Contracts with Pacific Gas and Electric Company and the California Independent System Operator Corporation for energy transmission services to the extent necessary antem e lent o provide for the general �ac e'ts�ae C TdI wolfgrre2 f the city's utility customers. p ITEM 16 (n) Contracts with any public agency or governmental body to construct a public work, where the Procul2W e'? determines the public agency or governmental body has used methods similar to those required by this chapter to contract for the public work. (o) Contracts with any public utility holding a certificate of public convenience and necessity or any entity holding a cable service or video service franchise pursuant to chapter 2.10 of this municipal code to construct a public works, where such works involves property of such public utility or cable service or video service franchisee and is otherwise of direct concern to both the city and such public utility or cable service or video service franchisee, provided that the project is not otherwise required by the charter to be formally bid. (p) Contracts with private developers to construct public improvements in connection with their development projects, even if the city contributes funds to the improvement project, provided that the projects are not otherwise required by the charter to be formally bid. (q) Projects, where the public work is performed by the city with its own employees. (r) Contracts, where the estimated total expenditure by the city does not exceed $10,000.00. (s) Contracts with entities to procure at wholesale prices utility commodities and services under a city "feed -in tariff' energy program that meets the requirements of Section 2.30.340(c). (t) Professional services contracts in relation to personnel matters for: recruitment consultants, workplace investigations, threat assessments, conflict intervention, and industrial safety. (Ord. 5494 § 21, 2020: Ord. 5387 § 1 (part), 2016: Ord. 5148 § 2, 2012: Ord. 5081 § 1, 2010: Ord. 4827 § 1 (part), 2004) Item 16 Page 9 Packet Page 503 of 582 ITEM 17 City Council Staff Report From: City Manager CITY O F Report Type: INFORMATION REPORTS PALO Lead Department: Office of Emergency Services ALTO Meeting Date: February 10, 2025 Report #:2501-4000 TITLE Palo Alto Local Hazard Mitigation Plan Annual Update for Calendar Year 2024; CEQA Status: Not a Project RECOMMENDATION This is an informational report as a status update on the Palo Alto Local Hazard Mitigation Plan. No Council action is required. EXECUTIVE SUMMARY The Office of Emergency Services provides this Local Hazard Mitigation Plan (LHMP) annual report to share the progress the City has made as of December 2024 on LHMP projects over the prior twelve months. The purpose of this information report is to provide an update on the City's implementation of the mitigation actions identified in the 2023 Santa Clara County Multi - Jurisdictional Hazard Mitigation Plan, Palo Alto Annex. It should be noted that the Council will see updates specifically on wildfire related plans separately from this update. BACKGROUND The City of Palo Alto, as part of the Santa Clara County multi -jurisdictional planning process (including participating local cities and special districts), developed a Multi -Jurisdictional Hazard Mitigation Plan from 2022- 2023 to meet Federal guidelines and thereby reduce risk from all hazards by identifying resources, information, and strategies for risk reduction. The Federal Disaster Mitigation Act of 2000 requires state and local governments to develop hazard mitigation plans as a condition for federal disaster grant assistance. The performance period for the 2023 Santa Clara County Operational Area Hazard Mitigation Plan, Volume 1 became effective in February 2024 with the final approval of the plan by FEMA. FEMA approved the City of Palo Alto Local Jurisdictional Annex, Volume 2 in July 2024, and the Palo Alto City Council adopted both Volumes 1 and 2 on October 7, 2024. The performance period for this plan is five years. Item 17 Page 1 Packet Page 504 of 582 ITEM 17 The 2023 MJMHP Base Plan - Volume 1 and the Palo Alto Annex -Volume 2 which articulates our local natural hazards and mitigation activities can be viewed online at https://www.cityofpaloalto.org/Departments/Emergency-Services/Plans-and- Information/Local-Hazard-Mitigation-Plan ANALYSIS OES coordinated this update with departmental staff members responsible or knowledgeable of each of the projects on this list. As of this reporting period, the performance period for this plan is considered to be 30% complete (including complete and ongoing projects). This includes 17 actions that were part of the previous 2017 LHMP that were not completed, and 10 new actions. Each action provides a description of the action, what hazard(s) applies to the action, the lead agency for the action, potential sources of funding, expected timeline for completion, the priority assigned to the action, and current status of the action. • 1 out of 27 initiatives (4%) have been completed. • 7 out of 27 initiatives (26%) indicated work is conducted as an ongoing capability. • 16 out of 27 initiatives (59%) reported progress toward completion. • 2 out of 27 initiatives (7%) reported having not started. • 1 out of 27 initiatives (4%) is closed and not will not be continued. FISCAL/RESOURCE IMPACT No additional resource impact is expected at this time. STAKEHOLDER ENGAGEMENT OES coordinated this update with departmental staff members responsible or knowledgeable of each of the projects on this list ENVIRONMENTAL REVIEW This item is presented only for Council's information and therefore it is not a project subject to environmental review by the California Environmental Quality Act (CEQA). ATTACHMENTS Attachment A: City of Palo Alto LHMP Update CY2024 APPROVED BY: Chief Ken Dueker, Director Office of Emergency Services Item 17 Page 2 Packet Page 505 of 582 Item 17 Page 3 Packet Page 506 of 582 ITEM 17 Attachment A City of Palo Alto Local Hazard Mitigation Plan Annual Update Reporting Period The reporting period for this progress report is from 1 January 2024 to 31 December 2024 Background This is an annual update of the status of identified projects/actions listed in the City of Palo Alto Local Hazard Mitigation Plan 2023. The City of Palo Alto, as part of the Santa Clara County multi -jurisdictional planning process (including participating local cities and special districts), developed a Multi -Jurisdictional Hazard Mitigation Plan from 2022- 2023 to meet Federal guidelines and thereby reduce risk from all hazards by identifying resources, information, and strategies for risk reduction. The Federal Disaster Mitigation Act of 2000 requires state and local governments to develop hazard mitigation plans as a condition for federal disaster grant assistance. To prepare the plan, the participating planning partners organized resources, assessed risks from natural hazards, developed planning goals and objectives, reviewed mitigation alternatives, and developed an action plan to address probable impacts from natural hazards. By completing this process, these jurisdictions maintained compliance with the Disaster Mitigation Act, achieving eligibility for mitigation grant funding opportunities afforded under the Robert T. Stafford Act. Volume I of the County plan provides the analysis of natural hazards for the Operational Area. It provides the content that informs the Palo Alto LHMP. The 2023 MJMHP Base Plan - Volume 1 and the Palo Alto Annex -Volume 2 which articulates our local natural hazards and mitigation activities can be viewed online at https://www.citVofpaloaIto.orq/Departments/Emergency-Services/Plans-and-Information/Local- Hazard-Mitigation-Plan Purpose The purpose of this information report is to provide an update on the implementation of the mitigation actions identified in the 2023 Santa Clara County Multi -Jurisdictional Hazard Mitigation Plan, Palo Alto Annex. The objective is to maintain a planning process that will keep the Santa Clara County Operational Area Hazard Mitigation Plan dynamic and responsive to the needs and capabilities of the City of Palo Alto and its stakeholders. Summary Overview of the Plan's Progress The performance period for the 2023 Santa Clara County Operational Area Hazard Mitigation Plan, Volume 1 became effective in February 2024 with the final approval of the plan by FEMA. FEMA approved the the City of Palo Alto Local Jurisdictional Annex, Volume 2 in July 2024, and Item 17 Page 4 Packet Page 507 of 582 ITEM 17 Attachment A the Palo Alto City Council adopted Volume 1 and 2 on 7 October 2024. The performance period for this plan is 5 years. As of this reporting period, the performance period for this plan is considered to be 30% complete (including complete and ongoing projects). The Palo Alto Volume 2 includes hazard mitigation actions to be pursued during the 5 -year performance period. This includes 17 actions that were part of the previous LHMP that were not completed, and 10 new actions. As of the reporting period, the following overall progress can be reported: • 1 out of 27 initiatives (4%) have been completed. • 7 out of 27 initiatives (26%) indicated work is conducted as an ongoing capability. • 16 out of 27 initiatives (59%) reported progress toward completion. • 2 out of 27 initiatives (7%) reported having not started. • 1 out of 27 initiatives (4%) is closed and not will not be continued. Review of the Action Plan Appendix 1 provides the action plan, reporting the status of each initiative. Actions PA -2 through PA -32 were actions carried over from the previous 2017 LHMP. Actions 1-10 are new as of the 2023 LHMP. In the table, each action provides a description of the action, what hazard(s) applies to the action, the lead agency for the action, potential sources of funding, expected timeline for completion, the priority assigned to the action, and current status of the action. Public review notice The contents of this report are considered to be public knowledge and have been prepared for total public disclosure. Copies of the report may be provided to the governing boards of all planning partners and to local media outlets. Any questions or comments regarding the contents of this report should be directed to: City of Palo Alto OES, 650-617-3197 or Ihmp@cityofpaloalto.org. Next Plan Update The Office of Emergency Services will provide a Calendar Year 2025 update in early February of 2025. Page 2 of 5 Item 17 Page 5 Packet Page 508 of 582 ITEM 17 Appendix 1: Local Hazard Mitigation Plan 2023: Calendar Year 2024 Update of Activities Attachment A The capacity of the creek was analyzed and it was determined that the creek has less capacity than what was previously concluded. General Fund, Hazard This is partly due to the bulking that occurs with the natural debris San Fransicquito Creek Upper Reach Flood Reduction and Ecosystem Flood, Heavy San Francisquito Creek Mitigation Grant accumulates at choke points. The consultant is working with staff PA -2 " Restoration Project to widen channel, improve floodwalls, and replace the Precipitation/Atmospheric Joint Powers Authority Program (HMGP), Short -Term High In Progress Pope -Chaucer Bridge River Flood Mitigation to evaluate creek widening alternatives to improve the creek Assistance (FMA) capacity, reduce the velocity and minimize flooding. The JPA is moving forward with the next steps of the outreach to select the alternative that is feasible. Right-of-Way(ROW) acquisition is complete, Caltrans approved ROW and Utility Certification. Permits from Regulatory Agencies (Army Corp of Engineers, Water Board, CA Dept of Fish and PA* Newell Creek Bridge replacement project to accommodate a 100 -year flood Flood, Heavy Rain, High Public Works - Engineering CALTRANS/ Santa Clara Valley Water Short -Term High In Progress Wildlife) and Encroachment permits from East Palo Alto and event. Wind, Atmos heric River p District (SCVWD) SCVWD were secured. Caltrans HQ is reviewing the Request for Authorization (E76) and Advance Construction Funding. Their response is anticipated by March 2025. Project will be advertized for construction in Spring of 2025. Broken and deteriorating pipes were replaced in various locations including Middlefield Rd./ Oregon Expwy, Fielding Dr./Louis Rd, Storm Drain System Replacement and Rehabilitation to maintain the Flood, Heavy Rain, High Capital Improvement Forest Ave./BryantSt. as part of Capital Improvement Projects. PA -6 integrity of the storm drain system of storm drain infrastructurePublic Wind, Atmospheric River Works - Engineering Project (CIP): SD- Ongoing Medium Ongoing to eliminate potential pipeline blockages that could cause street flooding es that 06101 Other repairs were done in-house by staff at Alester Drive and Page Mill Road. Staff will continue to monitor the system and repair or replace pipes when funding is available. It is unlikely the City will be recommending any further expansion of recycled water during this planning cycle. The One Water Plan PA 7* Recycled Water Pipeline Expansion Project to expand [he recycled water Drought, Climate Change Utilities- Engineering/WGW CIP: WS -07001 Short -Tenn Medium Closed -dot is a framework the Council may use to considerwater supply purple pipeline within South Palo Alto towards Stanford Researoh Park. completetl. projects and conservation activities to address future water supply reliability. CR5 review was completed and FEMA's CRS specialists determined Continue to maintain good standing and compliance in the NFIP and that staffs actions met the requirements to guarantee a CRS rating PA4J" ire rove Community Rating System Class to rodtle higher CRSpremium p Y p g Flood, Heavy Rain, High Public Works - Engineering g g General Fund Long-term g High 9 Ongoing 9 9 of 6. Residents continue to receive a 20% saving on flood discounts. Wind insurance. The next review / inspection is determined by CR5 Specialist and currently scheduled for Fall 2026. PA -10' Construct new public Safety Building to mitigate current risks to public Earthquake, Terrorism Public Works - Engineering CIP: PE -15001 Short -Tenn High In Progress Construction of the new Public Safety Building is nearly complete and safety essential serUces. the anticipated move in date is early 2025. The design of Fire Station 4 is currently underway. Construction of the PA -11' Rebuild Fire Station 4 to reduce impact from seismic events Earthquake, Terrorism Public Works - Engineering CIP: PE -15003 Short -Term High In Progress temporary fire station is anticipated to start at the end of January 2025, with construction of the new station scheduled to begin in spring 2025. Flood, Heavy Rain, High Palo Alto staff reviewed and commented on 90% plans in May PA -13` Replace the Baylands Tide Gate to reduce flood hazards in the Palo Alto Wind, Atmospheric River, Santa Clam Valley Water Santa Clara Valley Long-term Medium In Progress 2024, Valley Water is working on the revised plans and intends to flood zone. Dam and Levee Failure, District Water District funds submit the 100% Construction Documents in early 2025 for review. Tsunami The project is still on track to start in Fall 2025. The local salt removal facility (AWPS) will improve recycled water quality for both Palo Also and Mountain View (both distribute recycled water). The improved quality will enable Mountain View Implement Wastewater Long -Range Facilities Plan to improve facilities for Flood, High Heavy Rain, to expand their recycled water distribution to new commercial PA -15' treatment and discharge of waste; and to ire rove waterrecycling clin 9 P Y 9 Wind, Extreme Heat, Public Works - CIP: WQ-10001 Ongoing 9 9 High 9 In Progress 9 customers that are building facilities near Mountain View's opportunities Earthquake, Sea Level Entironmen[al Sertices Rise recycled water distribution system. Palo Alto City Council approved on May 13, 2024 the construction of the $63 -million salt - removing plant. Construction should begin in early 2025 and conclude in the summer of 2027. Item 17 Page 6 Packet Page 509 of 582 ITEM 17 Substructure for Phase iwas completed in Sprin�222 and he l�4hhleI ``PPhhaa Earthquake, Heavy substructure for Phase 2 was completed in June 3substructure installation is currently in progress. Phase 4 PA 79* Install Fiber Optic Service to Black Mountain Radio Repeater Site to improve � PrecipitationlAtmospheric Utilities - CIP: TBD Short-term Low In Progress construction is currently paused foran easement relocation from public safety communications along Skyline Drive. Y River, High Wind, Wildfire, 9 En ineerin /Electric 9 9 Mid -peninsula Open Space. Will resume construction early next Space Weather year when the easement paperwork is completed. Phase 5 substructure installation along Arastradero road is currently in progress. Wildfire, Power Outage, Construct a second electrical transmission interconnection to PG&E using Heavy Precipitation I CIP, HMGP, Pre - PA -21* a new corridor to reduce the single dependency of our connection to the Atmospheric River, Disaster Mitigation Long -Term Utilities - CPA staff submitted a 2nd application to CAISO fora new Medium In Progress electric grid. Extremm e tree Engineering/Electric (PDM) transmission project. Staff is expecting a response by July 2025. Cold, High Wind,Wind, Space Weather In 2024, the FFMP working group performed the required wildfire mitigation activities in Foothills and Arastradero Nature Preserves with a combination of city resources and contracted vendors. Additionally, the Public Works Department Urban Forestry Division contracted for electrical line clearance of the above Address hazardous fuels and reduce structural ignitability in the Foothills Community Services ground lines in the Foothills. The Palo Alto Fire Department PA -2r region in accordance with the Community Wildfire Protection Plan and 9 Wildfire, Extreme De Department - Parks and P9 General Fund, HGMP Short -Term Medium Ongoing 9 conducted their annual defensible space home assessments for Foothills Fire Management Plan. Temperature Open Space the residential properties in the Palo Alto WUI. Ourteam also installed 17 new smoke detection sensors throughoutthe the Foothills (among 50total sensors) in concert with the Fire Safe Council, Stanford University and Town of Woodside. in 2024 we also updated the Community Wildfire Protection Plan/Foothills Fire Management Plan as part of a county wide process. City council approval of contract forservices in ealry 2025, project PA -29* Consider a policy for Seismic Retrofitting of earthquake prone structures. Earthquake Planning and Development General Fund Short -Term Low In Progress beginning in March 2025 with final results anticipated in 24 Services project months. All hazards, including Publ i c Safety departments continue to engage ourcommunity community at Earthquake, Dam Failure, various events throughout the year to rasie awareness, lower PA32* Conduct public education that raises awareness of Palo Alto threats and Flood, Wildfire, Landslide, Palo Alto Office of Staff Time; General Ongoing High Ongoing personal risks, and increase preparedness. This includes social hazards and improves community resilience. Tsunami, Heavy Rain, High Wind, Extreme Heat, Emergency Services Fund media messaging, classes, conversations at events, emergency Drought messaging, and online content. Where appropriate, support retrofitting, purchase or relocation of structures All hazards, including The city maintains a record of repetitive loss structures in high PA36* located in high hazard areas and prioritize those structures that have Earthquake, Flood, Dam Planning and Development HMGP, PDM, FMA Short -Terri Medium Ongoing hazard areas but the City is not considering purchase or relocation experienced repetitive losses. Failure, Heavy Rain, High Wind, Wildfire Services of these structures in the next 12 months. All hazards, including The LHMP will be incorporated by reference into applicable city Earthquake, Flood, Dam planning processes as applicable including the Comprehensive PA37* Integrate the hazard mitigation plan into other plans, ordinances and Failure, Wildfire, Landslide, Planning and Development Staff Time; General Ongoing High Ongoing programs that dictate land use decisions within the community. Tsunami, Heavy Rain, High Services Fund Plan Elements, the Sustainability and Climate Action Plan, and Wind, Extreme Heat, area plans, as well as ordinances and programs that dictate land ught use decisions. PA36* Actively participate in the plan maintenance protocols outlined in Vol �Al'lhazards Palo Alto Office of Staff Time: General Short -Tenn High g On oin 9 9 The City is in compliance with the stated maintenance protocols. of the hazard mitigation plan. Emergency Services Fund to Page 2 of 5 Item 17 Page 7 Packet Page 510 of 582 ITEM 17 Attachment A New Actions from 2023 Planning Process Seismic retrofit two existing potable water storage reservoirs. Foundation CIP, HMGP, Building Engineering condition and coating assessment of Park Tank work and anchorage will be retrofitted along the lower sections of the tank Resilient Infrastructure completed. Condition assessment and engineering seismic t shell to restrain the tank against uplift, The tanks have a combined storage Earthquake, Landslide Utilities- Engineering/WOW and Communities Short -Tenn High In Progress Park Dahl Tank for FY2025, capacity of 2re .0 million gallons, and they are planned to stow emergency analysis of and planned subject to water storage for the City of Palo Alto. (BRIG) funding. Replace non -seismically restrained potable water piping in liquification Seismic retrofit of a water supply facility and 1.5 miles of water 2 zones with new fused and fully restrained piping. 10 miles of unrestrained Earthquake Utilities- Engineering/WGW CIP, HMGP, BRIO Short -Term Medium In Progress main replaced in 2024. About 1 mile of water main planned for pipe within a liquification zone will be replaced with fused HDPE piping. FY2025, subject to funding. Install two permanent standby stationary generators at Dahl and Park Pumping Potable Water Stations. These stations are located in WUI areas Earthquake, Wildfire, Portable generators procured for greater operational flexibility. 3 and service other WUI designated properties. Power lines are deenergized Power Outages, High g gg Utilities- Engineering/WOW CIP, HMGP, BRIO Short -Tenn High 1Og In Progress Generators purchased and currently being fabricated. Deployment during wildfire events and standby stationary generators will be imperative to Wind ensure power supply and continued operation of critical pumping facilities planned for 2025. during a wildfire event. Wildfire hardening of critical utilities infrastructure. This action would remove and replace the existing roof and install a new roofing system, soffit, fascia, and front door with WUI compliant materials, systems, and techniques. All vent screens will be removed and replaced with WUI compliant mesh. All Wildfire, Smoke, Air Will be studied in the WaterSystem Comprehensive Capital 4 ve etation within 30 -feet of the structures will be removed and trees limbed 9 Quality, High Wind Y 9 Utilities- Engineering/WGW CIP, HMGP, BRIG Ongoing Low Not Started Improvement Plan. for adequate defensible space around each structure. Therein a total of four structures located at four different sites, located in and round the Foothills Nature Preserve Area in the City of Palo Alto. Conduct an assessment for electrification of City facilities to achieve at least an 80 percent reduction in current natural gas usage by 2030. This CIP, HMGP, BRIO, The electrification assessment for City owned -city maintained, city 5 assessment will provide a schedule, cost estimate, and timeline of what Climate Change Public Works - Engineering Federal Energy Long -Term Low Complete owned - leased to others to maintain and leased buildings was facilities this electrification must occur at to achieve the goals of the SCAP Related Grants completed. per this scenario. Electrical undergrounding is proceeding through the project area, with work completed on Arastradero Road, and work continuing Apply mitigation techniques to approximately 11 miles of overhead line to along Arastradero Creek Trail. Substructure for Phase 1 was mitigate the possibility of a wildfire due to overhead electric lines. This could CIP, HMGP, BRIO, completed in Spring 2022 and the substructure for Phase 2 was 6 include the utilization of more robust equipment or construction practices; Wildfire, Smoke, Air Utilities - Cal Fire Wildfire Short -Tenn High In Progress completed in June 2023. Phase 3 substructure installation is rerouting to avoid vegetation and improve access for inspection and Quality, High Wind Engineering/Electric Mitigation maintenance; or converting the overhead lines to underground where currently in progress. Phase 4 construction is currently paused for feasible, an easement relocation from Mid -peninsula Open Space. Will resume construction early next year when the easement paperwork is completed. Phase 5 substructure installation along Arastradero road is currently in progress. In fall 2024, City's consultant completed a field assessment identifying location of a seepage weiron the downstream side of the Foothill Nature Preserve Dam as requested by the Study a location of historic seepage from the Foothills Nature Preserve Dam -Levee Failure, Department of Water Resources' Division of Safety of Dams. The 7 Dam. This project will imesti ate and monitor the seepage flow p / gby Earthquake, Flood, Public Works - Engineering 9 g9 CIP, HMGP Short -Term High In Progress 09 weir is anticipated to be installed by early 2025 which will allow channelizing seepage flow and potentially installing weir(s). Landslide, Climate Change the City to collect quantitative measurements of the seepage flow. The quantitative data would further assist in better understanding of the seepage trend and guide if future long-term solution is required. Apermanent CIP is not likely to occur in the next several years. Restore the width and height of the earthen flood levee between Harbor Road Dam -Levee Failure, Flood, Community Services The Army Corps of Engineers determined the cost to benefit 8 near the Baylands Interpretive Center and the perimeter levee of the airport to six inches above its original height. Tsunami, Climate Change Department - Parks and Open Space CIP Long-term Low Not Started ratio does not support federal fundingfor this project currently. Theywill re-evaluate in 2040. Improve the quality of the tertiary -treated recycled water by microfiltration or The Salt Removal Facility has a current active RFP and staff 9 ultrafiltration followed by reverse osmosis to reduce the level of Total Drought, Climate Change g 9 Public Works - CIP Long -Term g Medium In Progress o9 believes that construction will commence in 2025with completion Dissolved Solids (TDS). Environmental Services in22 in 2028. CIP, HMGP, Federal- 7 of 9 electric substations have new security lighting and cameras Evaluate options for protecting electric substations from outside vandalism Terrorism and Weapons of 10 and intrusion. If necessary, fences and other protections will be repaired. Mass Destruction, Active Utilities - State Physical Short -Tenn Medium In Progress installed. The engineering design and the IFB for contract Security lighting will be designed and issued for construction. Shooter Engineering/Electric Security Funding for construction is in progress. Construction is estimated to be P B Utilities completed Summer 2026, Page 3 of 5 Item 17 Page 8 Packet Page 511 of 582 ITEM 18 City Council Staff Report From: City Manager CITY O F Report Type: INFORMATION REPORTS PALO Lead Department: Planning and Development Services ALTO Meeting Date: February 10, 2025 Report #:2409-3442 TITLE Information Item: Summary of Fiscal Year 2023-2024 Community Development Block Grant (CDBG) Program Accomplishments — Review of the CDBG Consolidated Annual Performance and Evaluation Report (CAPER). CEQA Status — Not a Project. RECOMMENDATION This is an informational report and no action is required. EXECUTIVE SUMMARY The City is required to annually report its accomplishments achieved through its Community Development Block Grant (CDBG) program to the U.S. Department of Housing and Urban Development (HUD). This annual report to HUD is called the Consolidated Annual Performance and Evaluation Report (CAPER). In accordance with the City's CDBG Citizen Participation Plan, the City's Human Relations Commission (HRC) conducts a public hearing on the draft CAPER to allow for public review and discussion. The City then submits the draft CAPER to HUD by the annual September deadline. Afterwards, staff provides City Council with an informational report disseminating the draft CAPER as submitted to HUD (Attachment A).' No action is required by City Council to receive the draft CAPER. During FY 2023-2024 (Program Year 2023), the City's CDBG subrecipients provided projects, programs, and activities that benefitted extremely low-, very low-, low-, and moderate -income individuals and households in Palo Alto. Through CDBG and CDBG-CV funds, 613 persons and 19 microenterprises were assisted in FY 2023-2024. Of the 632 persons and microenterprises assisted by CDBG, 501 were extremely low-income, 105 were low-income, 8 were moderate - income, and 18 were non -low -moderate income. BACKGROUND The City of Palo Alto receives funds annually from HUD as an entitlement city under the CDBG program. As a recipient of CDBG funds, the City is required to prepare a CAPER at the end of 'The Consolidated Annual Performance and Evaluation Report (CAPER) uses the questions, report organization, and information format required and provided by HUD. Item 18 Page 1 Packet Page 512 of 582 ITEM 18 each fiscal year. The CAPER describes the City's progress on implementing the projects, programs, and activities identified in the City's CDBG FY 2023-2024 Annual Action Plan (AAP)2 and the goals and objectives of the 2020-2025 Consolidated Plan (ConPlan).3 The HRC reviewed the draft CAPER on September 12, 2024, briefly discussed the findings, and asked a few clarifying questions. The HRC did not provide any comments on the draft CAPER that required any changes. Additionally, there were no members of the public that spoke to this item. The City submitted the draft CAPER for FY 2023-2024 to HUD by the September 28, 2024 deadline. The City also responded to minor comments from HUD and submitted minor typographical amendments to the draft CAPER in November 2024. ANALYSIS During FY 2023-2024, the City's CDBG subrecipients continued to provide vital services to extremely low-, very low-, low-, and moderate -income households while addressing the priorities and needs of the community and the City's funding priorities. A total of $895,067 was available for CDBG projects, programs, and activities during FY 2023-2024. As reported in the 2023-2024 Final CAPER, major FY 2023-2024 accomplishments from the City's CDBG program are as follows: • Catholic Charities of Santa Clara County — Long Term Care Ombudsman Program [Goal: Assist 50 individuals; Actual: 50 individuals]. The program provided advocacy and complaint investigation for elderly residents of long-term care facilities in Palo Alto, which included regular contact with Palo Alto Residential Care Facilities to observe and monitor conditions of care; • Alta Housing — SRO Resident Supportive Services [Goal: Assist 131; Actual: 145 individuals]. Alta Housing engaged a service coordinator to provide 40 hours of weekly services to provide case management and support counseling services to residents at Alma Place and Barker Hotel to help them maintain housing stability. Activities included financial counseling, health maintenance, information, and referral problem -solving, employment assistance, crisis intervention, and case management. Both Alma Place and Barker Hotel are single -room occupancy facilities; • LifeMoves — Case Management [Goal: Assist 27 individuals; Actual: 193 individuals]. LifeMoves provided case management services to Opportunity Services Center and Hotel De Zink clients for locating housing and/or employment and be connecting clients 2 The Annual Action Plan outlines the projects, programs, and activities the city intends to undertake with CDBG funds to address the needs and implement the strategies identified in the City's Consolidated Plan (ConPlan). 3 The ConPlan is a five-year strategic plan that addresses the housing and non -housing community development needs of lower income persons in the City and establishes annual goals and objectives to meet the identified needs. Item 18 Page 2 Packet Page 513 of 582 ITEM 18 to benefits; • Project Sentinel — Fair Housing Services [Goal: Assist 12 individuals; Actual: 19 individuals]. Project Sentinel provided fair housing services to City residents including community education and outreach regarding fair housing law and practices, investigation, counseling, and legal referral for victims of housing discrimination; • Silicon Valley Independent Living Center (SVILC) — Case Management Services [Goal: Assist 25 individuals; Actual: 24 individuals]. SVLIC provided assistance for individuals with disabilities and their families. This assistance helped these persons to transition from homelessness, health care facilities, unstable or temporary housing to permanent affordable, accessible, integrated housing involving emergency assistance, security deposits, rent, information, and referrals; • Rebuilding Together Peninsula — Safe at Home Program [Goal: Assist 5 households; Actual: 6 households]. Program preserved affordable housing by transforming homes through critical repairs and accessibility modifications, at no cost to the service recipient. The majority of the low-income homeowners served were elderly seniors and/or people with disabilities, who are physically and financially unable to maintain safe living conditions for themselves and their families; • Peninsula Healthcare Connection (PHC) — Harm Reduction Services [Goal: 100 individuals; Actual: 114 individuals]. PHC delivered Harm Reduction materials to referral families. Materials included: substance use treatment recommendations such as rehab center options, support group meeting referrals, harm reduction kits designed for safe needle use and storage, and basic needs resources, such as Narcan; • WeeCare/Upwards — BOOST Program [Goal: 19 microenterprises; Actual: 19 microenterprises]. WeeCare worked with Family Child Care Home (FCCH) providers in Palo Alto who are already on the wait list for the BOOST program. These providers received staff training -learning best practices on how to grow and sustain their organization and how to better support the families they serve. Funds requested to pay WeeCare staff salaries for training providers on how to use Child Management System (CCMS) software. CCMS was developed for providers to create work plans, goals, capacity, and revenue, empowering them to reach service and operations goals; and • Move Mountain View (MMV) [Goal: 109 individuals; Actual: 62 individuals]. The program provides reserved off-street parking for participants, as well as permanent housing solutions through intensive case management. MMV operates four 24/7 RV Safe Parking lots and three Congregational Safe Parking locations. The total capacity of these lots in Palo Alto and Mountain View is 109 vehicles. A total of 159 vehicle dwellers are currently enrolled in the program. One of locations is located in Palo Alto at the Geng Road Safe Parking lot. The Geng Road Safe Parking Lot is where MMV utilizes Palo Item 18 Page 3 Packet Page 514 of 582 ITEM 18 Alto's CDBG-CV funds. Funding pays for the salary of one full-time Client Counseling Case Manager and one full-time Client Case Manager Housing Specialist. MMV experienced significant staff turnover in these positions during the program year, which resulted in fewer individuals being served than initially projected. TIMELINE As required by HUD, the FY 2023-2024 draft CAPER was submitted by the September 28, 2024 deadline. The FY 2025-2026 CDBG Formula Allocation is expected to be posted in April 2025, pending the approval of the FY25 federal budget. Staff continues to monitor legislative developments that may impact future CDBG funding. FISCAL/RESOURCE IMPACT This informational report has no fiscal impact. STAKEHOLDER ENGAGEMENT An advertisement was published in The Daily Post on August 28, 2024 announcing the availability of the draft CAPER for public review and comment. The draft CAPER was posted on the City's CDBG webpage (www.cityofpaloalto.org/cdbg) from August 28, 2024 through September 12, 2024, meeting the 15 -day public comment period requirement. Hardcopies of the draft CAPER were also available for review at the City's Development Center, Planning & Development Services Department at City Hall, and the City's Downtown Public Library. The HRC held a public hearing on September 12, 2024, to discuss the draft CAPER and provide the public the opportunity to comment; the meeting fulfills the public hearing requirement for the CAPER. There were no public comments made during the hearing and the HRC did not provide comments necessitating changes to the contents and or metrics of the draft CAPER. ENVIRONMENTAL REVIEW Council review on this item is not considered a project as defined by CEQA because the CAPER is for informational purposes only with no action required by City Council. ATTACHMENTS Attachment A: FY23/24 Draft Consolidated Annual Performance and Evaluation Report (CAPER) APPROVED BY: Jonathan Lait, Planning and Development Services Director Item 18 Page 4 Packet Page 515 of 582 Attachment A CITY OF PALO ALTO DRAFT 2023-2024 Consolidated Annual Performance and Evaluation Report (CAPER) PUBLIC COMMENT PERIOD AUGUST 29, 2024 - SEPTEMBER 12, 2024 SUBMITTED TO HOUSING AND URBAN DEVELOPMENT (HUD) ON SEPTEMBER 25, 2024 WITH MINOR REVISIONS ON NOVEMBER 26, 2024 ADMINISTERED BY: PLANNING AND DEVELOPMENT SERVICES Program Year 2023-2024 Palo Alto CAPER — DRAFT 1 Item 18 Page 5 Packet Page 516 of 582 ITEMTh Attachment A -_ O L 4 L VI a Q +, CO O �.•i L � 0 O C N Q) L a) to N > E L H CO L > O} a1 O U > c0 o Co C Q >, ° v > N v L �O (_ +, (I) L ai M a) O a O cc v C -O L m a) aF 0 f0 a a-+ a -O O -O -O >, i +, CO f0 tin 3 Cn a°, •≥ ° ° C v CA p CO E a C a a) a s O C V) i5 a) u •� U C (- U C a) t L — a) c0 a 4- a) Q. 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O a. o G E. f\ § @ 0 a o — § / f a) \ a � r 2 3 ) NO ) / \ \ EE E / k ) M _ 0 0 a. _ o § c O / \ / o- a. a) o / o � t $ S t 2 E C\ e n m 0 a/V > e § k 0 / 3 %� / / u \ C E = § / 0 / ( \ / 2 OD 2 f Q ® V ® 3 / E \ o2 N / © 5 / 3 % / 00 0 0 ® 3 c\ O m f 5\ (N \ / \ 0 0 U C \ e W 0N 0 f f R .5 / a E § / m / E a. ? / L / / e e 2 L ( / ° M 4- u 2 m > U4- / \ « m / E E \ / af \ ° -O ' U' O 2 3§ 0 2§§ ca E \ \ O a 5 o 2 ^ E / OE $a. } NI k } 7 Cam J = @ / L LO (1) u % ) > ) \$ / L / \ \ _ >4- f 2 ca U U / L U \ / \ = » m k m . \ 2 Q \ \ / / / 2 Item 18 Page 11 Packet Pae 522 of 582 CDBG White 324 Black or African American 99 Asian 62 American Indian or American Native 8 Native Hawaiian or Other Pacific Islander 8 Total 501 Hispanic 99 Not Hispanic 402 ITEM 1 Attachment A CR-10 - Racial and Ethnic composition of families assisted Describe the families assisted (including the racial and ethnic status of families assisted). 91.520(a) Table 2 - Table of assistance to racial and ethnic populations by source of funds Narrative Table 2 outlines the racial and ethnic populations served by CDBG funds in FY 2023-2024 (PY 2023), although this HUD IDIS formatted reporting table does not track persons identifying as multi -racial. Therefore, the City is clarifying that a total of 613 individuals and 19 microenterprises were served by the City's CDBG and CDBG-CV programs: 324 white persons with 95 of those identifying as Hispanic; 99 Black persons with 1 of those identifying as Hispanic; 62 Asian persons; 8 American Indian persons with 3 of those identifying as Hispanic; 8 Native Hawaiian/Pacific Islander persons. Additionally, 127 persons identifying as multi -racial with 31 of those identifying as Hispanic, which is not identified within Table 2. Program Year 2023-2024 Palo Alto CAPER — DRAFT 8 Item 18 Page 12 Packet Page 523 of 582 ITEM 1 Attachment A CR-15 - Resources and Investments 91.520(a) Identify the resources made available Table 3 - Resources Made Available Narrative Nearly all the City's CDBG subrecipients effectively utilized their grant funds during FY 2023-2024 (Program Year 2023). However, the Public Works ADA Curb Ramp Improvements Project (IDIS Activity #358) was unable to expend $492,498 in grant funds during this time period. Despite many efforts to release earlier, the PY project bid package request for proposals was first released on March 13, 2024, closed on April 3, 2024, was re-released on April 17, 2024, and closed again on May 1, 2024. City Council awarded the contract in June 2024. The project is on track to commence construction in September 2024, the first available contractor start timeframe. Identify the geographic distribution and location of investments Table 4- Identify the geographic distribution and location of investments Narrative The City's approach to housing assistance encompasses all forms of housing support, aligning with the principles outlined in the City's Comprehensive Plan. Housing support activities are not confined to specific target areas; instead, the City strives to offer affordable housing options to individuals with lower incomes across the entire municipality. Program Year 2023-2024 Palo Alto CAPER — DRAFT 9 Item 18 Page 13 Packet Page 524 of 582 Source of Funds Source Resources Made Available Amount Expended During Program Year CDBG public - federal 914,242 406,580 Target Area Planned Percentage of Allocation Actual Percentage of Allocation Narrative Description N/A Attachment A Leveraging Explain how federal funds leveraged additional resources (private, state and local funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land or property located within the jurisdiction that were used to address the needs identified in the plan. Palo Alto leverages Federal, State, & private housing funds in alignment with goals outlined in 2020- 2025 Consolidated Plan. The City actively encourages non-profit organizations to pursue various avenues of funding, spanning local, state, & Fed. resources, to support both housing and non -housing community development activities. HUMAN SERVICES RESOURCES ALLOCATION PROCESS (HSRAP): In FY 2023-2024, the City allocated $896,035 in General Funds to HSRAP to address primary human service needs in Palo Alto. This represents a funding increase over the amount of $622,377 allocated the preceding year. These funds support initiatives, guided by the Human Relations Commission's priority needs & administered by the Office of Human Services. LOCAL HOUSING TRUST FUND (LHTF): In FY 2022-23, Palo Alto received $3.4 million from HCD to use alongside local matching funds toward the production of rental housing units at affordability levels. 70% of funds target housing units for residents with incomes at or below 60% of AMI and 30% of funds targeting housing units for residents with incomes at or below 30% AMI. Palo Alto expended $1.5 million of HCD LHTF funds in FY 2023-2024, leaving a remainder balance of $1.9 million for use in the future. PERMANENT LOCAL HOUSING ALLOCATION (PLHA): As a PLHA entitlement jurisdiction, Palo Alto receives an annual PLHA allocation from HCD. Palo Alto uses these funds to assist persons experiencing or at risk of homelessness by funding street outreach and operating expenses for the Palo Alto Homekey shelter, as well as funding affordable rental housing preservation, new construction, and operating subsidies. HOMEKEY: Palo Alto Homekey is a forthcoming new modular interim housing shelter near the Palo Alto Baylands. It will house over 200 individuals annually. Palo Alto and LifeMoves received Homekey funds. Palo Alto Homekey also utilizes local, county, and state funding, as well as funds from Sobrato Philanthropies. These additional funding sources address expenses beyond what federal funds can cover, such as pre -development costs, feasibility studies, site acquisition, and other similar activities. Program Year 2023-2024 Palo Alto CAPER — DRAFT 10 Item 18 Page 14 Packet Page 525 of 582 Attachment A CR-2O - Affordable Housing 91.520(b) Evaluation of the jurisdiction's progress in providing affordable housing, including the number and types of families served, the number of extremely low-income, low-income, moderate -income, and middle -income persons served. One -Year Goal Actual Number of Homeless households to be provided affordable housing units 0 0 Number of Non -Homeless households to be provided affordable housing units 0 0 Number of Special -Needs households to be provided affordable housing units 0 0 Total 0 0 Table 5 - Number of Households One -Year Goal Actual Number of households supported through Rental Assistance 0 0 Number of households supported through The Production of New Units 0 0 Number of households supported through Rehab of Existing Units 5 6 Number of households supported through Acquisition of Existing Units 0 0 Total 5 6 Table 6- Number of Households Supported Discuss the difference between goals and outcomes and problems encountered in meeting these goals. The City continued its partnership with Rebuilding Together Peninsula through its Safe at Home Program. The Program represents preservation of affordable housing, as the program provides for critical home repairs and accessibility modifications at no cost to the recipient. Those served include LMI homeowners that are elderly and/or are people with disabilities, who are physically and financially unable to maintain safe living conditions for themselves and their families. The City and Rebuilding Together Peninsula exceeded the current year goal of assisting 5 LMI households due to efficient use of program funds. Program Year 2023-2024 Palo Alto CAPER — DRAFT 11 Item 18 Page 15 Packet Page 526 of 582 Attachment A Discuss how these outcomes will impact future annual action plans. Rebuilding Together Peninsula's multi -year success demonstrates continued need for home rehabilitation for LMI households. Future plans would build upon these consecutive successes to continue providing home rehabilitation. Include the number of extremely low-income, low-income, and moderate -income persons served by each activity where information on income by family size is required to determine the eligibility of the activity. Number of Households Served CDBG Actual HOME Actual Extremely Low-income 3 0 Low-income 3 0 Moderate -income 0 0 Total 6 0 Table 7 — Number of Households Served Narrative Information Palo Alto CDBG subrecipient Rebuilding Together Peninsula serves verified moderate income to extremely low-income households. Program Year 2023-2024 Palo Alto CAPER — DRAFT 12 Item 18 Page 16 Packet Page 527 of 582 Attachment A CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) Evaluate the jurisdiction's progress in meeting its specific objectives for reducing and ending homelessness through: Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs Palo Alto has an enduring local commitment to address homelessness and provide services for the unhoused. Santa Clara County jurisdictions participate in the County's Point -in Time Count every two years. The next count will be in 2025. The 2022 Point -in -Time Count showed 274 unhoused persons in Palo Alto (263 unsheltered and 11 sheltered) which is a decrease from 2019, when the count was 313. The 2023 Point -in -Time Count showed 206 unhoused persons in Palo Alto (187 unsheltered and 19 sheltered), which is a decrease in homelessness compared with 2022. This data shows that initiatives have reduced overall homelessness in Palo Alto. During the Point -in -Time count, surveys are administered to gather information and assess needs for the population. The City of Palo Alto provides funding for unhoused services and homelessness prevention via multiple funding channels: HSRAP, CDBG, PLHA, and the Emerging Needs Fund. This broad financial support is directed toward service provision and homeless prevention. Unhoused services include workforce development, basic needs stipends for work experience, food, seasonal homeless shelter, school supplies for homeless children, case management, tele-medicine equipment, and shower/laundry services. Additionally, the City contracted with a local nonprofit to provide a two -person full time Outreach Team to reach out and provide services to unhoused individuals in the community, including those living in cars and RV's. The City also opened an Overnight Warming Location (OWL) that operated during winter and provided 112 "nights indoors" for 34 unique participants. Homelessness Prevention support includes provision of emergency rent and utility funding assistance through LifeMoves and Silicon Valley Independent Living Center. LifeMoves — Opportunity Center is designated by the County as the Emergency Assistance Network Agency for financial assistance for Palo Alto. The Opportunity Services Center in Palo Alto exclusively serves homeless individuals. LifeMoves at the OSC provides intake services to all the clients they serve to assess their needs and provide the appropriate resources and referrals. They also provide basic need services such as access to restrooms, showers, laundry, used clothing, hygiene supplies, health care, mail/telephone services, food, transportation assistance, information and referral services, counseling, and other critical services. Palo Alto will continue to explore its funding strategy and collaborate with other South County cities to ensure that limited federal and local resources are targeted to pressing community needs such as homelessness. Program Year 2023-2024 Palo Alto CAPER — DRAFT 13 Item 18 Page 17 Packet Page 528 of 582 Attachment A Addressing the emergency shelter and transitional housing needs of homeless persons The following activity received funding from the City of Palo Alto to provide emergency shelter and/or transitional housing for homeless persons. LifeMoves — Opportunity Services Center, funded by CDBG with an amount of $26,660, has significantly extended its operational hours, thereby providing enhanced support to Palo Alto's homeless community. This extension has granted vulnerable clients more time within a secure and nurturing environment, ensuring they receive the critical assistance they require. organization. During this year, the program funds facilitated services to 193 individuals. Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: likely to become homeless after being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); and, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs The following agencies received funding from the City of Palo Alto to help low-income individuals and families avoid becoming homeless: Alta Housing; CDBG $14,000: Alta Housing had on -site counseling services available to residents of the 145 units of the Single -Room Occupancy (SRO) Resident Support Program at Alma Place and Barker Hotel. The majority of the residents are low-income, disabled, elderly, veterans, and formerly homeless adults. Many residents have difficulty managing daily living skills, such as managing finances, maintaining their health (mental and physical) and apartments, and having a good relationship with others. Without onsite support, such issues can become so severe that tenants risk losing their housing. Case management was provided to 148 residents this year using program funds. LifeMoves, Case Management; CDBG $23,636: LifeMoves provided case management service including assistance with housing and job searches, referrals, and mentoring to 193 unduplicated homeless and/or very low-income Palo Alto residents. The City follows the guidance of Santa Clara County's CoC as it relates to individuals who may be discharged from publicly funded institutions and systems of care. The Santa Clara County's CoC has developed the Santa Clara County Countywide Quality Assurance Standards for Homeless Housing & Service Programs (2021). The document was developed with the expectation of providing quality, standardized services to persons who have become homeless to facilitate their successful re-entry back into their communities. As a member of the CoC, the City of Palo Alto will be following the standards in the documents. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to Program Year 2023-2024 Palo Alto CAPER — DRAFT 14 Item 18 Page 18 Packet Page 529 of 582 Attachment A permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again Silicon Valley Independent Living Center; Case Management: SVILC is highly recognized for its Housing Workshops. The Housing Workshops cover many important topics such as: credit readiness and credit repair; types of low-income housing and eligibility; application and interview preparation; tenant and landlord rights and responsibilities; fair housing and home modifications laws and resources; security deposit and rental assistance programs; long term services and supports. Through the FY 2023-2024 (PY 2023) CDBG funding, 24 unduplicated Palo Alto residents with disabilities received one-on-one assistance and developed an independent living plan for housing which resulted in improved accessibility to decent affordable housing. Project Sentinel; Fair Housing Services: Project Sentinel provided community education and outreach regarding fair housing law and practices, investigation, counseling, and legal referral for victims of housing discrimination. In total, 19 LMI residents were provided individual case management and consultation relating to specific fair housing questions. Program Year 2023-2024 Palo Alto CAPER — DRAFT 15 Item 18 Page 19 Packet Page 530 of 582 Attachment A CR-30 - Public Housing 91.220(h); 91.320(j) Actions taken to address the needs of public housing Not applicable. The Santa Clara County Housing Authority does not operate in Palo Alto. Actions taken to encourage public housing residents to become more involved in management and participate in homeownership While the majority of the public housing units have been converted to affordable housing stock, the Santa Clara County Housing Authority is proactive in incorporating resident input into the agency's policy making process. An equitable and transparent policy making process that includes the opinions of residents is achieved through the involvement of two tenant commissioners, one being a senior citizen, on the Authority's board. Actions taken to provide assistance to troubled PHAs Not applicable. Program Year 2023-2024 Palo Alto CAPER — DRAFT 16 Item 18 Page 20 Packet Page 531 of 582 Attachment A CR-35 - Other Actions 91.220(j) -(k); 91.320(i) -(j) Actions taken to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment. 91.220 (j); 91.320 (i) The City of Palo Alto recently adopted the 2023-2031 Housing Element in July 2024. The Housing Element includes many programs to tackle impediments to affordable housing development. Programs include modifications to existing zoning to allow for denser development, further streamlining the development review process, provisions of development standards that incentivize housing production, and reevaluation of fees to support development, to name a few. Housing Trust Silicon Valley (Housing Trust): Originally known as the Housing Trust Fund of Santa Clara County (HTSCC), the Housing Trust was established to provide available financial resources targeted at bridging the affordable housing gap within the County. Its overarching mission is to contribute to rendering Silicon Valley a more financially accessible place to reside. The Housing Trust achieves this by disbursing loans and grants to increase the affordable housing supply, supporting first-time homebuyers, forestalling homelessness, and enhancing community stability. Palo Alto was one of the founding contributors to this initiative and has maintained a consistent commitment to fund allocation. Notably, a provision was introduced to ensure that the funds allocated by the City are exclusively channeled towards qualifying affordable housing projects situated within Palo Alto's municipal boundaries. Development Impact Fees for Housing: The City's development impact fees encompass four distinct categories: Housing, Traffic, Community Facilities, and Parkland Dedication. These fees result from comprehensive Nexus Studies undertaken for both Residential and Commercial Development. The outcomes of these studies laid the groundwork for revised fees associated with residential and non- residential housing, which became effective on June 19, 2017. The housing impact fees are subjected to annual updates. Fees charged are periodically evaluated and modified so that they support, rather than prohibit housing development. Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j) The City's CDBG program demonstrates a committed effort to collaborate with various funding entities, aiming to maximize the impact of each dollar invested. This is accomplished through strategic collaborations with other municipal resources, such as HSRAP, enabling the pooling of funds designated for site acquisition in low-income housing alongside diverse funding sources. However, Palo Alto faces challenges in fully addressing barriers that impede the fulfillment of underserved needs, given that needs outshine the annual availability of CDBG funds over the years. In response, the City supplements its CDBG funding with other resources and funds. As examples: • During FY 2023-2024 (PY 2023), the City allocated $896,035 in General Funds to the City's Program Year 2023-2024 Palo Alto CAPER — DRAFT 17 Item 18 Page 21 Packet Page 532 of 582 Attachment A Human Service Resource Allocation Process (HSRAP)to address primary human service needs in Palo Alto. The HSRAP funds, coupled with the CDBG public service funds, are allocated to local non-profit organizations. • The Palo Alto Commercial Housing Fund is used primarily to increase the number of new affordable housing units for Palo Alto's work force. It is funded with mitigation fees required from developers of commercial and industrial projects; • Palo Alto Residential Housing Fund is derived from mitigation fees collected through Palo Alto's BMR housing program from residential developers and various other miscellaneous sources. These diverse sources include proceeds generated from the sale or leasing of City property. • The City established the Below Market Rate Emergency Fund to offer continuous funding for loans to BMR owners, encompassing special assessment loans, as well as supporting the restoration and safeguarding of the City's collection of BMR ownership units. • Annually, the HOME Program funds are made accessible through a competitive selection process administered by the State of California HOME program and the County's HOME Consortium. Actions taken to reduce lead -based paint hazards. 91.220(k); 91.320(j) Lead exposure can inflict enduring damage upon the brain and various organs, ultimately leading to diminished cognitive and behavioral challenges, especially among young children. As of August 2023, an estimated 500,000 children below the age of six in the United States exhibit elevated lead levels in their bloodstream, surpassing the threshold set by the Centers for Disease Control and Prevention for concern. A significant portion of these children hails from low-income families, residing in aged residences marked by substantial concentrations of lead -based paint and lead -contaminated dust and soil in their surroundings. City housing and CDBG staff disseminate information and make referrals to property owners, developers, and non-profit organizations engaged in the restoration of older housing, particularly concerning hazards linked to lead -based paint (LBP). In line with this, any dwelling slated for rehabilitation aided by City financial support is subjected to an assessment for the presence of LBP hazards. The City extends financial support for mitigating LBP hazards in rehabilitated units with City funding. Additionally, the City enforces contractor training and certification to mitigate the potential use of LBP in the construction of 40 new units. All development and rehabilitation projects must be evaluated according to HUD's Lead Safe mitigating LBP hazards in rehabilitated units Housing Rule 24 CFR Part 35.[1]. Actions taken to reduce the number of poverty -level families. 91.220(k); 91.320(j) As part of its ongoing commitment to poverty reduction, the City allocated funds to agencies offering direct support to individuals experiencing homelessness or those at risk of becoming homeless. During FY 2023-2024 (PY 2023): LifeMoves provided case management services, including assistance with housing and job searches to Program Year 2023-2024 Palo Alto CAPER — DRAFT 18 Item 18 Page 22 Packet Page 533 of 582 Attachment A 193 homeless/very low-income community residents. LifeMoves provides necessities for persons who are homeless or at risk of becoming homeless. Additionally, LifeMoves operates the Opportunity Services Center, which is a comprehensive, one stop, multi service, day drop -in center providing critical services for homeless Palo Alto residents. Specifically, the center provides showers, laundry, clothing, snacks, case management, and shelter/housing referral services. Alta Housing provided counseling and supportive case management services for low-income residents of single room occupancy facilities to help them maintain housing stability. Activities included financial counseling, health maintenance, information and referral, problem solving, employment assistance, crisis intervention, and case management. Alta Housing was able to provide services to 145 individuals. MOVE Mountain View's Safe Parking Lot Program provided reserved off-street parking for participants, as well as permanent housing solutions through intensive case management to 62 individuals. MMV operates four 24/7 RV Safe Parking lots and 3 Congregational Safe Parking locations. The total capacity of these lots in Palo Alto and Mountain View is 109 vehicles. 159 vehicle dwellers are currently enrolled in the program. One of which is located in Palo Alto, Geng Road Safe Parking lot. Funding pays for the salary of one full-time Client Counseling Case Manager and one full-time Client Case Manager Housing Specialist. Actions taken to develop institutional structure. 91.220(k); 91.320(j) The City is actively working towards enhancing collaboration between governmental bodies and private sector entities to harness collective endeavors, pool resources, and identify additional revenue to address community service requirements and create affordable housing. This collaborative approach encompasses several key initiatives: • Participate in meetings among entitlement jurisdictions through the CDBG Coordinators. • Participate in meetings of the Regional Housing Working Group. • Participate in joint jurisdiction Request for Proposals and project review committees. • Participate in community services and housing initiatives funded by multiple jurisdictions. • Participate in HOME Consortium meetings among member jurisdictions to discuss affordable housing projects. Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91.320(j) The City benefits from a strong housing and community development partner network within its jurisdiction and the wider region. Collaborative relationships with organizations such as the County and the Continuum of Care (CoC) further strengthen this network. To foster increased collaboration between public and private sectors, the City actively partners with local jurisdictions and developers, facilitating the exchange of knowledge and resources. In addition to the strategies mentioned above, the City remains dedicated to harmonizing its goals with its HSRAP funding initiatives, ensuring a comprehensive approach to meeting community needs. Identify actions taken to overcome the effects of any impediments identified in the Program Year 2023-2024 Palo Alto CAPER — DRAFT 19 Item 18 Page 23 Packet Page 534 of 582 Attachment A jurisdictions analysis of impediments to fair housing choice. 91.520(a) The City is committed to actively promoting fair housing in accordance with the adopted Analysis of Impediments. The subsequent enumeration outlines the measures undertaken to advance fair housing: • The City's 2023-2031 Housing Element includes programs to address affirmatively further fair housing (AFFH). These include outreach/education services, continue to enforce the Below Market Rate (BMR) program that provides more affordable units, expands housing services, and implement more renter protections. • A significant portion of the City's local housing funds were allocated towards augmenting and conserving the inventory of affordable housing. • The Office of Human Services held regular meetings with the County of Santa Clara Housing Authority to facilitate the placement of homeless individuals utilizing Section 8 vouchers. • Affordable housing information and referral services were provided by the Office of Human Services; • In a joint effort with the County of Santa Clara and Cities, the City adopted its updated Assessment of Fair Housing (AFH) Plan in May 2023. • During FY 2023-2024, the City continued to support actions to affirmatively further fair housing choice through a subrecipient agreement with Project Sentinel, a non-profit organization dedicated to assisting individuals with housing problems. Project Sentinel exceeded their goal of 15 individuals served through case management. They served 19 LMI individuals via case management. Program Year 2023-2024 Palo Alto CAPER — DRAFT 20 Item 18 Page 24 Packet Page 535 of 582 Attachment A CR-40 - Monitoring 91.220 and 91.230 Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements The City remains actively engaged in overseeing all subrecipients and projects to ensure their adherence to program and comprehensive planning requirements. This monitoring process encompasses the review of quarterly performance reports, reimbursement requests, submitted supporting documentation, and agency audit reports. Biennial desk -site monitoring is conducted for all CDBG subrecipients, involving assessing client files, project objectives, compliance with agreements, administrative and financial management, and internal controls. For FY 2023-2024 (PY 2023), the City completed the subrecipient monitoring process in Spring 2024 for all subrecipients. The City also completed risk assessments for all subrecipients. Citizen Participation Plan 91.105(d); 91.115(d) Describe the efforts to provide citizens with reasonable notice and an opportunity to comment on performance reports Electronic copies of the FY 2023-2024 draft CAPER were made available on the City website (https://www.cityofpaIoaIto.org/CDBG) for the required 15 -day public comment period from August 29, 2024 through September 12, 2024. Hardcopies of the draft CAPER were also available for review at the Development Center, Planning & Development Services Department at City Hall, and the City's Downtown Public Library. An advertisement was placed in The Daily Post, a newspaper of general circulation, on August 28, 2024, advertising the availability of the draft CAPER for public review and comment. The Human Relations Commission held a public hearing on September 12, 2024, to discuss the draft CAPER and hear public comments on the CAPER. Per the City's adopted Citizen Participation Plan, the City offers translation services when a significant number of non-English speaking residents can be reasonably expected to participate or when a reasonable accommodation request is made. Non-English speaking residents requiring translation assistance or any accommodations and or persons with disabilities that require assistance are advised to submit their request as soon as possible but no later than 48 hours before a scheduled meeting, program, or service. For the September 12, 2024 HRC meeting agenda, staff report, and meeting information, please visit: www.cityofpaloalto.org/City-Hall/Boards-Commissions/Human-Relations-Commission. Comments: no comments were received during the comment period. Program Year 2023-2024 Palo Alto CAPER — DRAFT 21 Item 18 Page 25 Packet Page 536 of 582 Attachment A CR-45 - CDBG 91.520(c) Specify the nature of, and reasons for, any changes in the jurisdiction's program objectives and indications of how the jurisdiction would change its programs as a result of its experiences. Not applicable. The City does not plan to change the CDBG program objectives. Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI) grants? No. [BEDI grantees] Describe accomplishments and program outcomes during the last year. Not Applicable. Program Year 2023-2024 Palo Alto CAPER — DRAFT 22 Item 18 Page 26 Packet Page 537 of 582 Attachment A CR-58 — Section 3 Identify the number of individuals assisted and the types of assistance provided Total Labor Hours CDBG HOME ESG HOPWA HTF Total Number of Activities 0 0 0 0 0 Total Labor Hours Total Section 3 Worker Hours Total Targeted Section 3 Worker Hours Table 8— Total Labor Hours Qualitative Efforts - Number of Activities by Program CDBG HOME ESG HOPWA HTF Outreach efforts to generate job applicants who are Public Housing Targeted Workers Outreach efforts to generate job applicants who are Other Funding Targeted Workers. Direct, on -the job training (including apprenticeships). Indirect training such as arranging for, contracting for, or paying tuition for, off - site training. Technical assistance to help Section 3 workers compete for jobs (e.g., resume assistance, coaching). Outreach efforts to identify and secure bids from Section 3 business concerns. Technical assistance to help Section 3 business concerns understand and bid on contracts. Division of contracts into smaller jobs to facilitate participation by Section 3 business concerns. Provided or connected residents with assistance in seeking employment including: drafting resumes,preparing for interviews, finding job opportunities, connecting residents to job placement services. Held one or more job fairs. Provided or connected residents with supportive services that can provide direct services or referrals. Provided or connected residents with supportive services that provide one or more of the following: work readiness health screenings, interview clothing, uniforms, test fees, transportation. Assisted residents with finding child care. Assisted residents to apply for, or attend community college or a four year educational institution. Assisted residents to apply for, or attend vocational/technical training. Assisted residents to obtain financial literacy training and/or coaching. Bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns. Provided or connected residents with training on computer use or online technologies. Promoting the use of a business registry designed to create opportunities for disadvantaged and small businesses. Outreach, engagement, or referrals with the state one -stop system, as designed in Section 121(e)(2) of the Workforce Innovation and Opportunity Act. Other. Table 9 — Qualitative Efforts - Number of Activities by Program Program Year 2023-2024 Palo Alto CAPER — DRAFT 23 Item 18 Page 27 Packet Page 538 of 582 Attachment A Narrative There were no Section 3 project activities in FY 2023-2024 (PY 2023). Program Year 2023-2024 Palo Alto CAPER — DRAFT Item 18 Page 28 Packet 24 e 539 of 582 ITEM 19 City Council Staff Report �:. From: City Manager CITY O F Report Type: INFORMATION REPORTS PALOLead Department: Community Services ALTO Meeting Date: February 10, 2025 Report #:2501-4020 TITLE Key Findings of the 2024 Human Services Needs Assessment; CEQA Status - Not a Project RECOMMENDATION This is an informational report and City Council action is not required. EXECUTIVE SUMMARY This report transmits the results of the Human Services Needs Assessment conducted in 2024 Through qualitative and survey research, and review of existing data of service providers, the Human Services Needs Assessment identifies community needs, common barriers to service participation, and specific needs for high -risk groups along with recommendations for additional considerations regarding the Human Services Resource Allocation (HSRAP) framework and human services needs that would benefit from future community conversations. The HRC revised the Priority of Needs for the FY26/27 HSRAP application process based on the recommendations from the assessment and will continue to work with staff on addressing the other recommendations from the report. This includes possible future adjustments to the HSRAP framework and working in collaboration with community partners on human services needs and gaps identified, all with the goal of informing the HRC's work in the coming period as well as the FY28/29 HSRAP process, focus and investments. BACKGROUND The Human Services Resource Allocation Process (HSRAP) is the established mechanism by which the City solicits, reviews, and allocates the City's General Fund dollars to human service organizations in the community; the process has been in place since 1984. One of the first steps in the process is to establish the Priority of Needs (i.e., allowable funding categories) for each funding period. The City's Human Relations Commission (HRC) has historically done so by identifying human services needs through information provided by the community at its monthly meetings and from the findings of a biennial Needs Assessment conducted in advance of every HSRAP application period. These biennial Needs Assessments were limited in scope and included a survey of Palo Alto human services providers and local demographic information. Item 19 Page 1 Packet Page 540 of 582 ITEM 19 Since the last full-scale Human Services Needs Assessment (HSNA) was conducted in 2012, Office of Human Services (OHS) staff determined that there was a need for a more thorough examination into local human service needs and issued a Request for Proposal (REP) in late 2023 for a consultant to conduct an assessment. A contract was awarded to RDA Consulting (RDA) in early 2024 and they began work in the Spring of 2024. The key aim of the HSNA was to identify the needs, gaps, barriers and challenges faced by Palo Altans seeking human services, provide an understanding of local service needs, and help guide future grant making priorities. Together RDA and OHS identified three overarching questions for the HSNA: (1) What human services needs are Palo Alto residents experiencing? (2) What are the strengths and gaps in existing services available to Palo Alto residents? (3) What are the opportunities for HSRAP to better fill gaps in services? The keys methods of community engagement and secondary qualitative and quantitative data gathering activities employed for the HSNA included: • Qualitative Research (Focus Groups and Individual Interviews) • 51 total participants • Survey Research (Community & Service Providers) • Community Survey translated into five languages • 385 Survey responses from community members and 34 from service providers • Secondary Data — Including data on current HSRAP grantees and other Human Services providers in Palo Alto and Santa Clara County The completed HSNA (Attachment A) was presented to the HRC at their October 23, 2024 meeting'. Feedback centered on understanding and interpreting assessment findings and identifying next steps. ANALYSIS Key Finding from the 2024 HSNA report: Community Needs — The report indicated through the results of both the qualitative and quantitative research tools that the greatest needs include: (A) Essential services for high needs groups —primarily: (1) Individuals experiencing housing insecurity and homelessness, (2) Individuals with disabilities, and (3) Older adults. 1 Human Relations Commission, October 23, 2024; Agenda Item 2, Action Minutes; https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=39928 Item 19 Page 2 Packet Page 541 of 582 ITEM 19 (B) Community connection, isolation, and inclusion The survey tool (given to both community members and service providers) asked both what the greatest needs were and the level to which those needs are not being met currently. Those results indicated that needs for community connection, isolation, and inclusion are largely met, and essential services for high needs groups are largely unmet - further stating that this is especially true for: (a) individuals experiencing homelessness; (b) adults with disabilities; and (c) those who identified as Hispanic or Latino/a/x, another race (including multiracial), and those who did not share their race/ethnicity. Common Barriers to Service Participation —The report identified the following as barriers or limitations to receiving services: 1. Inaccessibility of services 2. Waitlists or lack of capacity 3. Long or confusing application processes 4. Service costs Additional barriers identified include location and transportation to services as well as not knowing what services/resources are available. Essential Services for High Need Groups - The report delves deeper into specific needs for "high need" groups (defined as individuals who fall into demographic categories that have high rates of unmet need relative to other demographics subgroups) stating that: While high needs groups, such as unhoused individuals, adults with disabilities, and older adults, benefit in part from existing services within Palo Alto and neighboring cities within the County, they still lack comprehensive safety net services. Additionally, long waitlists for critical services and resources including shelter, along with the high demand for mental health services, remain pressing issues. Individuals who are currently unhoused, have a disability, or both, had the highest rates of unmet need overall." Some of the specific areas of need reported in the HSNA include the following (Note — The full HSNA report provides details as to the level that these areas of need are being currently being met). • Housing Assistance & Homelessness Services — Individuals across all sectors (unhoused, low income and more upper income individuals) named affordable housing and safe and accessible shelter as one of the most pressing needs facing local residents. As that relates to shelters, persons experiencing homelessness reported long wait times and short stays. The lack of affordable housing affects many sectors of the community including older adults, individuals with disabilities, young families, etc. Item 19 Page 3 Packet Page 542 of 582 ITEM 19 • Services for Individuals with Disabilities —The report stated that "For many disabled individuals in the community, accessing consistent, affordable support from trained professionals is difficult in Palo Alto and the Bay Area overall. Both children and adults, require professional support workers trained to address specific medical diagnoses and disabilities. However, finding such specialized disability support staff locally is often challenging. The high cost of living in Palo Alto has led to a shortage of healthcare providers, therapists, and direct support workers within the city. As a result, individuals with disabilities find that they must travel long distances to receive services." • Older Adult Services - A large proportion of both service providers and community members named the importance of sustaining older adult services as an area in critical need of additional funding, resources, and focus. It was found that older adults feel increasingly isolated and find it harder to access essential services that they need. Service providers expressed concerns about the growing population of older adults whose needs are greater than their resources. Providers note that there are limits to what local agencies can provide in such areas as transportation, social activities, medical services, and counseling for older adults in relation to the need. • Mental Health Supports for Adults & Youth — Nearly all provider survey respondents responded that adult mental health support is a need among their client populations; this was also true for a majority of individuals who responded to the survey. Approximately two-thirds of community members (65%) and some service providers also named youth mental health as a specific area of unmet need. As the quantitative survey was not administered to school age youth (under the age of 18), the report acknowledges that the extent of unmet need of youth may be underrepresented. • Food & Nutrition Services — While the need for food and nutrition services was affirmed by most survey respondents as an area of need, it was more specifically indicated as an area of greater unmet need by those whose household income is less than $60,000 and unhoused individuals who indicated that there were not free sources of food on the weekend. Community Connection, Isolation, and Inclusion - The report indicates that across background characteristics that "Community connection and engagement, along with leisure/recreation, and cultural services or affinity spaces were the most widely shared needs identified by needs assessment participants...." Although the overall levels of unmet need were lower in relation to other areas. Experiencing higher unmet needs in these areas are specific communities such as those experiencing homelessness, individuals with disabilities, older adults, immigrants and those with limited English proficiency, and lower income residents. A specific conversation about these needs have been identified as an area that would benefit from additional community conversation in the final section of this report. Item 19 Page 4 Packet Page 543 of 582 ITEM 19 Additional survey results and demographics are included on pages 7 - 24 of the HSNA. Staff and HRC Responses to the Findings and Recommendations from the HSNA: Priority of Needs The only action taken by the HRC at their October 23, 2024 review meeting of the HSNA was to finalize the proposed Priority of Needs - allowable HSRAP funding categories - as the Request for Proposal (REP) for the FY26/27 HSRAP process was to be issued early December 2024. RDA was asked to propose a new Priority of Needs for HSRAP based on the findings from the needs assessment and human serviced best practices for number of funding categories. In general, the HRC felt the proposed Priority of Needs did a good job of encompassing the needs that were highlighted in the HSNA. However, they felt that a couple key areas of need were missing based on current HSRAP funding in critical service areas of need. The following Priority of Needs was adopted for the FY26/27 HSRAP cycle, the text in BOLD indicates the changes that the HRC made to RDA's proposed Priority of Needs. • Homelessness services • Housing support services • Services for individuals who are disabled • Services for older adults and their caregivers • Food & nutrition services • Mental and physical health services • Services for youth and their caregivers HSRAP Framework & Consideration of Service Improvements As part of the HRC's work for the coming two years in anticipation of the FY28/29 HSRAP cycle, the Commission will be addressing the other recommendations and areas for further consideration of the HSNA. This includes the consideration of developing additional key elements of the HSRAP frameworks including guiding values, funding framework, and overarching strategic priorities The report also includes a series of recommendations for further Service Improvements from the main findings from the report. These are areas of need in the community that would benefit from being discussed and/or addressed cross -sectionally with partners such as the City of Palo Alto, Human Relations Commission, service providers, nonprofit partners, community members and other stakeholders. These follow up areas include: • Barriers to Service Participation • Housing Assistance & Homelessness Services • Services for Individuals with Disabilities • Older Adult Services • Mental Health Supports for Adults & Youth Item 19 Page 5 Packet Page 544 of 582 • Food & Nutrition Services • Areas of Unmet Needs • Community Connection, Isolation & Inclusion FISCAL/RESOURCE IMPACT The information in this report does not impact resources at this time. STAKEHOLDER ENGAGEMENT There was significant outreach to the community for the HSNA. This included outreach to area Human Services providers that provide services to Palo Alto resident and several touchpoints with current HSRAP grantees to encourage them, as well as their clients, to complete the needs assessment survey and participate in focus groups opportunities as well as targeted outreach to providers of services to vulnerable populations. Outreach was also done to local communities of faith, Palo Alto Unified School District, Child Care providers, local service group, City website/social media channels, County services representatives, flyers in local libraries/community centers, OHS list serve, paid ads in the Palo Alto Daily Post and Palo Alto Online, County -wide Human Service provider list serv, key stakeholder interviews and in -person interviews with community members at local libraries, among other outreach efforts. ENVIRONMENTAL REVIEW This is an informational report and not subject to CEQA. ATTACHMENTS Attachment A: City of Palo Alto Human Services Needs Assessment Report 2024 APPROVED BY: Kristen O'Kane, Community Services Director Item 19 Page 6 Packet Page 545 of 582 T r r— ' tii� rt a.ti - -_ • ` f ' Lr #ice -i '; ' t r pl 1, ITEM 19 Attachment A Human Services Needs Assessment 2024 LIty or ralo Alto Oft -ice of Human Services This report was developed by RDA Consulting under contract with the City of Palo Alto Office of Human Services. OCITY OF PALO ALTO j1RDA D A tI C 0 N S U L T I N G 4YEARS SystemsCharge RDA Consulting, 2024 Item 19 Page 8 Packet Page 547 of 582 ITEM 19 Attachment A ii Table of Contents Executive Summary 2 Introduction & Methodology Overview 3 Limitations 5 Definitions 6 Profile of HSNA Participants 7 Community Needs & Existing Services 11 Barriers to Service Participation 13 Essential Services for High Needs Groups 14 Community Connection, Isolation, & Inclusion 22 HSRAP Funding Alignment with Needs & Recommendations 25 Areas for Further Consideration 29 Appendix A: Community Member Snapshot 33 Item 19 Page 9 Packet Page 548 of 582 ITEM 19 Attachment A Executive Summary Introduction & Methodolog%, In early 2024, the City of Palo Alto Office of Human Services (OHS) engaged RDA Consulting to conduct a Human Services Needs Assessment (HSNA) to identify and prioritize human service needs, gaps, barriers, challenges, and resources to guide future funding priorities and service grant allocations, with specific emphasis on the Human Services Resource Allocation Process (HSRAP), through which the City has been allocating human services funds since 1983.' The FY24 HSRAP budget is just over $850,000 and distributed amongst twenty-two service programs run by twenty- one community -based organizations (CBOs). To guide the 2024 HSNA, RDA —in partnership with OHS —developed a community engagement and assessment plan to assess human service needs, existing services, and gaps. To this end, RDA and OHS identified three overarching questions: (1) What human services needs are Palo Alto residents experiencing? (2) What are the strengths and gaps in existing services available to Palo Alto residents? (3) What are the opportunities for HSRAP to better fill gaps in services? Primary and secondary qualitative and quantitative data gathering activities conducted between May and July 2024 included focus groups, surveys, and interviews as well as secondary data gathering and review. V Dr,lc .+ USNA Pr.r+ii+ir,ryr�+e HSNA community survey participants reflected diverse demographic characteristics that align with those of the City of Palo Alto with respect to age and to some degree race/ethnicity. Community Needs & Existing Services Overall, the areas of greatest need resulting from this mixed methods assessment include (A) essential services for high needs groups —including, primarily, (1) individuals experiencing housing insecurity and/or homelessness, (2) individuals with disabilities, and/or (3) older adults; as well as (B) community connection, isolation, and inclusion. Barriers to Service Participation The most common barriers to service participation included the inaccessibility of services, waitlists or lack of capacity, long or confusing application processes, and service costs. Additional barriers identified include location and transportation to services as well as not knowing what services/resources are available. HSRAP Alignment & Recommendations for Funding Priorities Overall, based on the findings from this needs assessment and human services best practices, we recommend that OHS sustain and narrow HSRAP funding priorities to primarily include 1. Homelessness services & housing 4. Food & nutrition services 2. Services for individuals who are disabled 5. Mental health services 3. Services for older adults ' https://www.cityofpaIoaIto.org/Departments/Community-Services/Human-Services City of Palo Alto OHS: Human Services Needs Assessment 2024 1 2 Item 19 Page 10 Packet Page 549 of 582 ITEM 19 Attachment A Introduction The City of Palo Alto Office of Human Services (OHS) assists with providing a safety net of services, and works toward enhancing the quality of life in Palo Alto in a variety of ways.2 The OHS team oversees the Human Services Resource Allocation Process (HSRAP), a Human Services grant program open to organizations who deliver direct safety net services to Palo Alto residents, through which the City has been allocating human services funds since 1983.3 The 2024 HSRAP fiscal year budget is just over $850,000 distributed amongst twenty-two service programs run by twenty-one community -based organizations (CBOs). In early 2024, OHS engaged RDA Consulting to conduct a Human Services Needs Assessment (HSNA) to identify and prioritize human service needs, gaps, barriers, challenges, and resources to guide future funding priorities and service grant allocations, with specific emphasis on the HSRAP program. RDA collaborated with OHS to carry out a variety of robust community engagement, research, and analysis activities. Data gathered via these activities, which took place throughout the spring and summer of 2024, directly inform this report's findings and recommendations. Methodology Overview To guide the 2024 HSNA, RDA —in partnership with OHS —developed a community engagement and assessment plan to assess human services needs, existing services, and gaps. To this end, RDA and OHS identified three overarching questions: What human services needs are Palo Alto residents experiencing? a. What are the most pressing human services needs in Palo Alto? b. Which needs are being met? Which needs are not being met? c. Whose needs are being met? Whose needs are not being met? What are the strengths and gaps in existing services available to Palo Alto residents? a. In what ways do services meet community needs? b. In what ways are services not meeting needs? c. To what extent does HSRAP funding align with community needs? What are the opportunities for HSRAP to better fill gaps in services? a. What potential service improvements may be needed (e.g., refinements, additions)? b. Which population subgroups would benefit from more investment (e.g., more or expanded services)? In which specific areas of need? c. Where can HSRAP funds have the most impact? 2 https://www.cityofpaIoaIto.org/Departments/Community-Services/Human-Services 3 https://www.cityofpaIoaIto.org/Departments/Community-Services/Human-Services City of Palo Alto OHS: Human Services Needs Assessment 2024 13 Item 19 Page 11 Packet Page 550 of 582 ITEM 19 Attachment A The community engagement and assessment plan identified and informed the development and implementation of multiple primary and secondary qualitative and quantitative data gathering activities: • Qualitative Research (Focus Groups & Interviews): A total of four focus groups with 21 participants, interviews with four community stakeholders, and 26 intercept interviews were conducted virtually and in person between June and July 2024, with a combined total of 51 community participants.4 Topics covered by the in-depth one- on-one and small group interviews and focus groups included consumer needs and service strengths, weaknesses, and opportunities for improvement to better meet needs of community members. These qualitative data gathering activities allowed for deeper dive discussions and exploration of questions relating to the objectives of the HSNA. Note: All 453 community members and service providers who completed a survey (see below) were invited to participate in a focus group with RDA. Only 21 of these individuals both (a) volunteered to participate and (b) ultimately showed up to participate in one of the virtual focus groups held by RDA staff. • Survey Research (Community & Provider Survey): To learn about community needs and experiences in To ensure equitable services, a survey was administered electronically via access to the Alchemer (an online survey platform) and via paper form community member between May 28, 2024, and July 9, 2024. Altogether we survey, RDA partnered received 419 unique survey responses from 385 with JR Language community members and 34 service providers. Overall, Translation Services to the number or community member respondents provides translate the survey into a statistically representative sample of the broader a total of five languages: population of Palo Alto residents.5 Furthermore, the English, Spanish, Russian, sample population of community members is largely Traditional Chinese, and representative of the broader population of Palo Alto Simplified Chinese. residents with respect to age and to some degree race (see `Profile' sections below). • Secondary Data: In addition to the primary data gathered for the 2024 HSNA, RDA partnered with the Office of Human Services to gather data on HSRAP grantees and on service providers in the City of Palo Alto and the County of Santa Clara more broadly. This data included agency names, service areas and descriptions, and HSRAP award allocations (if applicable). RDA also utilized data from the 2020 Palo Alto Census to assess the representativeness of the HSNA community survey sample. 4 Includes duplicate participants (e.g., community members and providers who participated in a focus group and completed a community survey). 5 The community member survey sample of n=385 is considered statistically representative of the overall population of Palo Alto, 68,572, given a 95% confidence interval and 5% margin of error. City of Palo Alto OHS: Human Services Needs Assessment 2024 4 Item 19 Page 12 Packet Page 551 of 582 ITEM 19 Attachment A Limitations RDA leveraged varied data sources to prepare this report in alignment with best practices for rigorous community research and analytical methodologies. Key limitations include (1) overrepresentation of perspectives from more service -aware and engaged consumers; (2) overrepresentation of viewpoints from HSNA participants who shared feedback via more than one method (e.g., community survey and focus group) as well as those who received the survey via a specific service provider who directly administered the survey to clients; (3) limitations in number of HSRAP grantees that participated in this research (only six of 21 FY24 HSRAP grantees completed a survey); and (4) limitations with respect to community member demographic data —(a) nearly one -in -five (19%) community member respondents did not report their race/ethnicity and a similar proportion did not report their household income and other important demographic variables; (b) certain demographic groups were overrepresented (e.g., individuals 75 and over, females) while others were underrepresented (e.g., Asian only residents), (c) the community survey included the new Middle Eastern and North African (MENA) category introduced by the U.S. Census in April of 20246, but failed to provide specific subcategories that would allow participants to self -identify with one or more of the diverse and more nuanced racial categories included within the broader MENA category (e.g., Egyptian, Iranian, Iraqi, Israeli/Jewish, Lebanese, Syrian), which is particularly important given the current socio-political climate. Nonresponse Bias & Steps Taken to Minimize Bias Multiple forms of nonresponse bias may be present with a voluntary community survey, including community members who are unwilling or unable to respond to the survey as a whole or unwilling or unable to respond to specific survey questions.* Individuals may choose not to answer a specific question because it feels too personal (e.g., income, race/ethnicity), because they are unsure how to answer, or because of some other reason. In developing and administering the community and provider survey, RDA took multiple steps to minimize nonresponse bias including but not limited to: • Avoiding simple 'yes'/ 'no' questions and including a wider range of response options • Including 'not listed - please specify:', 'unknown', 'prefer not to state' and 'N/A' options • Leaving demographic questions to the end of the survey to minimize stereotype threat** • Ensuring all open-ended questions were optional (vs. required) • Providing assurance that all information shared will remain confidential • Multiple communications and reminders to complete the survey • Providing an incentive to complete the survey Sources: *https://www. qualtrics. com/experience-management/research/response- bias/#: -: text=Voluntary%20response%20biases%20in %20surveys, have%20a%20highly%20opinionated%20sample. ** https://isotl.sites.olt.ubc.ca/files/2019/03/eio-general guidelines.pdf 6https://www.census.gov/newsroom/blogs/random-samplings/2024/04/updates-race-ethnicity- standards.html City of Palo Alto OHS: Human Services Needs Assessment 2024 1 5 Item 19 Page 13 Packet Page 552 of 582 ITEM 19 Attachment A U Definitions • Accessible: Resources, facilities, or services that consider and are responsive to the needs of people with disabilities (e.g., facilities or services that are built or modified so that they can be used by people of all abilities). 7 • Endorsed Needs: For the purposes of this report, "endorsed" needs including any needs identified by community members or service providers as an area of need (including "top" area of need as well as additional areas of need). • Essential Services: Programs or facilities intended to meet the basic health, welfare, and other needs of community members with the goal of promoting self-sufficiency and well-being.8 • High Needs: For the purposes of this report, "high needs" refers to individuals who fall into demographic categories that have higher rates of unmet need (e.g., unhoused individuals, older adults, individuals with disabilities) relative to other demographic subgroups. • Human Services Recipient: For the purposes of this report, "human services recipient" includes any individual who identified as a human services recipient or a behavioral health recipient per the HSNA Community Survey. 7 https://www.cdc.gov/ncbddd/disabilityandhealth/disability-strategies.html 8 htti2s://www.dictionary.com/browse/human-services#aoogle vignette; https://www.humanservicesedu.org/definition-human-services/ City of Palo Alto OHS: Human Services Needs Assessment 2024 1 6 Item 19 Page 14 Packet Page 553 of 582 ITEM 19 Attachment A Profile of HSNA Participants HSNA community survey participants reflected diverse demographic characteristics that largely align with those of the City of Palo Alto with respect to age and race, however Asian only residents are slightly underrepresented and female residents are overrepresented within the survey (see Table 1). With respect to age, survey respondents generally mirror the population of Palo Alto, apart from individuals 75 and older who are overrepresented (see Table 1). Additionally, as with the overall population of Palo Alto, approximately half of all survey respondents identified as White (48%). Hispanic / Latino/a/x residents are also proportionally represented (6% vs. 7%). In contrast, Asian residents are slightly underrepresented (28% vs. 35%) while other minority subgroups including Black / African American residents (6% vs. 2%) are overrepresented (see Table 1). Dissimilar to the overall population of Palo Alto, which is nearly evenly split by sex (male, female), approximately two-thirds of survey respondents (63%, 128 of 203) identified as female. Respondent household income varied; over half of respondents reported a household income of $120,000 or less per year (54%; 209 out of 385) and approximately two -in -five reported a household income of $60,000 or less per year (21%, 81 out of 385). NOTE: For the purposes of this report, we examined trends for those reporting a household income of $120,000 and below, given that the American Community Survey indicates about 25% of households in Palo Alto have an annual income of $100,000 or less. Additionally, we examined trends for those reporting a household income of $60,000 and below, particularly with respect to rates of unmet need. I Beyond these demographic characteristics, most community survey respondents resided in the following three Palo Alto zip codes: 94306 (25%; 96 out of 385), 94303 (20%; 78 out of 385), and 94301 (17%; 67 out of 385). Approximately one-third of community survey respondents identified as a human services recipient (36%; 139 out of 385) and a similar proportion identified as a parent (37%; 142 out of 385). A minority of survey respondents identified themselves as an individual with a disability (9%; 34 out of 385), and a small proportion identified as an individual experiencing homelessness (4%; 17 out of 385) (see Appendix A for a more detailed demographic breakdown). 9 https://data.census.aov/profile/Palo Alto city, California City of Palo Alto OHS: Human Services Needs Assessment 2024 7 Item 19 Page 15 Packet Page 554 of 582 ITEM 19 Attachment A Table 1. Palo Alto HSNA Community Survey & Census Demographics'° Highlighted rows indicate demographic groups that are proportionally representative of (i.e., not statistically different from) the overall Palo Alto population. .-.. 1j1 Ii ;.. .. .. Age (n=331) 44 and younger 165 50% 53% 45-59 55 17% 21% 60-74 50 15% 14% 75 and older 61 18% 11% Sex / Gender (n=320) Female 203 63% 51% Male 105 33% 49% Another Gender Identity12 12 4% N/a Race/Ethnicity13 (n=312) White only 149 48% 49% Asian only 88 28% 35% Hispanic or Latinx (of any race) 20 6% 7% Native American or Alaska Native only 19 6% 0.1% Black or African American only 18 6% 2% Another Race14 18 6% N/a 10 In accordance with data de -identification guidelines, demographic categories that represent fewer than 1 1 individuals have been rolled up into a larger combined category (e.g., 44 and younger). 11 Palo Alto 2020 Census: https://data.census.gov/profile/Palo_Alto_city,_California?g=160XX000S0655282. These data are inclusive of American Community Survey (ACS) updates. 12 Community survey respondents selected gender identity categories that were unavailable in the 2020 census. 13 In the Community Survey, respondents were able to select all categories that applied. For the purposes of comparison to the census data, RDA recoded data to determine who identified as White only,' 'Asian only,' etc. 14 This category includes race/ethnic groups representing fewer than 11 respondents in each of the following groups: Native Hawaiian or Other Pacific Islander only (Not Hispanic or Latinx), Multiracial (Not Hispanic or Latinx), Jewish only (Not Hispanic or Latinx), Middle Eastern or North African only (Not Hispanic or Latinx). Census data could not be retrieved for comparison because Community Survey respondents selected racial categories that were not available in the 2020 census data (i.e., Jewish, Middle Eastern or North African) City of Palo Alto OHS: Human Services Needs Assessment 2024 8 Item 19 Page 16 Packet Page 555 of 582 ITEM 19 Attachment A Table 2. Community Survey: Frequency of Respondent Race/Ethnicity by Household Income *Non -White Race/Ethnicity categories include Asian, Native American or Alaska Native, Black or African American, Hispanic or Latinx, or another unspecified race. ** Race/Ethnicity: Unknown/Not Reported not included given n <11 for multiple income categories. Table 3. Community Survey: Frequency of Respondent Primary Language by Household Income English 29 172 43 244 Non-English* 28 35 12 75 TOTAL** 57 207 55 319 *Non-English language categories include Mandarin, Cantonese, Spanish, American Sign Language, Hebrew, Korean, Russian, Vietnamese, and another unspecified language. ** Primary Language: Unknown/Not Reported not included given n <11 for multiple income categories. Table 4. Community Survey: Frequency of Respondent Age by Household Income 44 and younger 14 9 16 57 47 22 165 45 and older 53 35 21 13 11 33 166 TOTAL** 67 44 37 70 58 55 331 ** Age Group: Unknown/Not Reported not included given n <11 for multiple income categories. City of Palo Alto OHS: Human Services Needs Assessment 2024 1 9 Item 19 Page 17 Packet Page 556 of 582 ITEM 19 Attachment A ># Provider Snapshot A total of 34 providers, completed the Provider Survey. Additionally, nine providers participated in one of two focus groups with RDA staff. Overall, providers perspectives' on pressing community needs aligned largely with community members, with slightly greater emphasis on mental health needs. Areas of greatest need (i.e., top needs): • Mental health supports for adults (15 of 29) • Housing assistance (13 of 25) • Food and nutrition services (1 1 of 24) • Homelessness outreach and services (11 of 25) • Older adult services (11 of 19) • Community engagement/connection (13 of 22) o However, most providers indicated this need was mostly or completely met. Areas of greatest unmet* need: *"not meeting or only "somewhat" meeting • Housing assistance (20 of 27) • Homelessness outreach & services (18 of 27) • Mental health supports for adults (18 of 27) • Transportation assistance (18 of 26) • Emergency financial assistance (16 of 26) • Supports for individuals with disabilities (15 of 26) • In -home care (assistance with daily living) (15 of 26) • Older adult services (14 of 26) • Medical/physical health care (14 of 26) ># In their own words: Reflection on housing assistance needs & services "There is currently a lack of shelter and affordable housing for Palo Alto residents." "Temporary housing for those working towards permanent placement is not available." Reflection on mental health needs & services "In the context of mental health of youth, 50% are receiving support. Stress and academic progress are impacting the mental health of students. There are not enough resources. Families who are receiving basic needs support are unable to advocate for their children." Reflections on needs & services for adults & individuals with disabilities "Senior services are not adequate for seniors with developmental disabilities." "Individuals with developmental disabilities are not fully included in services and activities." "Many disabled people need direct support from trained professionals, like support workers who are trained specifically on how to support the medical diagnosis and disabilities." City of Palo Alto OHS: Human Services Needs Assessment 2024 1 10 Item 19 Page 18 Packet Page 557 of 582 ITEM 9 Attachmen Community Needs & Existing Services Overall, the areas of greatest need identified from the triangulated results of this mixed method (qualitative and quantitative) needs assessment include (A) essential services for high needs groups -primarily, (1) services for individuals experiencing housing insecurity and homelessness, (2) services for individuals with disabilities, and (3) service for older adults; as well as (B) community connection, isolation, and inclusion. The most common barriers to service participation identified by community survey respondents include limitations to or inaccessibility of services themselves (e.g., eligibility, capacity, cost) as well as location, transportation, and awareness of services. Figure 1. Community Member Survey: Most Important Areas of Need (N=298-338) Community engogement/connection (n338 Cultural services ar affinity spaces (n=331 } Med ica Ef P hysica k health care (n= 31 5J Leis use/recreation (n=319} Older adult services (n=3201 ErraergencyGr racialassistonce {nom16) Mental health supports far adults (n=316} Food and nutrition assistance (n=320} Housing assistance in=320} In -home care (assistance with daity living} (n=316} Transpor}afion assistance {n=319) Child/youthprograms and recreation (n=33a} Elder abuse prevention In=315} Supports for individuals with disahAitfes (n=309} Legal aid/support (n=311J Childcare assistance in=327} Services far adWIts with disabilities Inrr315� Workforce development/errnployrnentassistance (n304} Mental health supports forchldrenlyoutfi in=3131 Sexual and reproductive health care in=31}6} Substance use services (n=308} Tutoring (n=298} LGBTQ+ resources and support (n=302] Homelessness outreach and services (n=3121 Maternal and infant health care (n=306} services for children and youth with disabWities (n=306} 0% 10% 20% 309E 40% 50% 60 70% 50% .90% i0C% ■ Top need (%] ■ Need but not top need (%] Not a need (96] City of Palo Alto OHS: Human Services Needs Assessment 2024 11 Item 19 Page 19 Packet Page 558 of 582 ITEM 19 Attachment A While needs for community connection, isolation, and inclusion are largely met, essential services for high needs groups are largely unmet. This is especially true for: (a) individuals experiencing homelessness, (b), adults with disabilities, and (c) those who identified as Hispanic or Latino/a/x, another race (including multiracial), and those who did not share their race/ethnicity. Figure 2. Community Member Survey: Unmet Need (N=116-269) Services for adults with dfsat�irrfies in=135) Emer aency financial assistance [n=100] Housing assistance (n=181] In -home cafe jassiilance with dciiyrfiving[ in=172[ Homelessness outreach and.services (n=117] Legal old}support (n=186] Services forchaldren and youth with di5abilatles {n=116] Me nta I health supports for. adults 1n 195] Food and nutrition assisfa nce rn=2DD] Transportation desistance {n=144] OideroduItservices {n=220) Supporisforindividuats Vuith disabilities In=147) Wartfcrce developmentlemp3oyment assistgnce {n=351 [ :' Maternal and infant heplth care in=1351 Men �aI health supports for children fyoulh [n=151] LGBTQ+resources andsuppart [n=]24] Tutolmg (n=1491) Elder abuse prevention (h=1.51] CulturaLservfces or alt fnfty.Spades (n=238] Commurify engagement{c neciion (n=269}I0 1k. Se�uaI and reproductive health care (n=146] til S,stance use services in=138) Pi MeacoIfphysical health care (n=211] Leisurefrecreatfon [n 247] Childcare assistance [n=1,55] Ghldlyouth programs and recreation {n=781] 0% 10% 20% 30% 40% 50% 60% 70% & 90% 104% - ■Not met f46] ■Somewhaf mel i% Y"Ostly mel [%) City of Palo Alto OHS: Human Services Needs Assessment 2024 12 Item 19 Page 20 Packet Page 559 of 582 ITEM 19 Attachment A Barriers to Service Participation Community survey respondents who need services experience a variety of barriers to service participation. The most common barriers to service participation included ineligibility (or uncertainty regarding eligibility), waitlists or lack of capacity, long or confusing application processes, service costs, as well as location and transportation to services. Additionally, most community members indicated that they "do not know where to learn about services/resources to help meet their needs" at least some of the time. Throughout qualitative activities, providers and community members alike noted a need for greater awareness and knowledge of existing services in Palo Alto and surrounding areas. Multiple stakeholders note that greater marketing of available services and resources would be a valuable resource to the community. Figure 3. Community Survey: Barriers to Service Participation (N=328-339) l am not eligible [ariam not sure it kam eligible] for services "Spreading {n=333) i the word l do not have adequate transperfoiion to and from services (nom' about Services are not located m neighborhoods where I con in them available participate (n=3291 Services are not welcoming and respectful to people from my services culture or background {n=332] needs some Services are already full and/or have a long waits! (n=333] work. It's Services do not accommodate my dsaktility definitely a Application processesfofser 9ces are too long and/or priority for us confusing (r 333] to get more I am concerned people will judge me for participating in services]r1-33'] exposure so torn concerned that participating in services volt negative!y that the affect my immigration status or that of my loved ones in=333} community Services cost too much money jn=328J f. knows we I do not know where to team about services! reeources.to help meet myneeds (nom 1 are here Service provkdti r shaft do not hove a sirrular cut tore or and what boclgraundasme (n 332] Services are not availle in my language (n=3321 ab services we are I da not know where andlar howto access, needed services (hke food assistance, healthcare. housjng] (n=338] providing or I am concerned about my safety when traveing to and/or to pneed parficipairtginservicestrr=3361• am notable to use technology to participate in services pI rt,7vjj e,rr (n,331] - Service IY Y% 411%60% 80% ,0M Provider ■AIwo ysoralniostalwaystrue (%} ■Sometimestrue 1%) Not at all or rarely true (%] City of Palo Alto OHS: Human Services Needs Assessment 2024 1 13 Item 19 Page 21 Packet Page 560 of 582 ITEM 19 Attachment A V Essential Services for High Needs Groups While high needs groups, such as unhoused individuals, adults with disabilities, and older adults, benefit in part from existing services within Palo Alto and neighboring cities within the County, they still lack comprehensive safety net services. Additionally, long waitlists for critical services and resources including shelter, along with the high demand for mental health services, remain pressing issues. Individuals who are currently unhoused, have a disability, or both, had the highest rates of unmet need overall. Housina Assistance & Homelessness Service, The most pressing need identified by participants across community engagement activities for this assessment was accessible housing and shelter. Individuals experiencing homelessness, low-income individuals, and more affluent community members alike consistently named affordable housing and safe and accessible shelter as one of the most pressing needs facing Palo Altans. The complex housing challenges in the Bay Area, driven by various economic and social factors, have a significant impact on the Palo Alto community members -particularly unhoused individuals, adults with disabilities, and individuals identifying as human service recipients. Most respondents endorsed housing assistance as an important area of need (68%; 219 out of 320 who responded), and nearly half endorsed homelessness outreach and services as an important area of need (49%; 154 out of 312 who responded). Overall, however, most community survey respondents indicated that they personally could access and/or afford housing or rent, while more than one third of respondents indicated that they can only sometimes or rarely if ever are able to (see Figure 4). In contrast, only a small proportion of survey respondents (4%) identified as experiencing homelessness. Figure 4. Community Survey Wellness Indicators: Housing 54.4% 51.7% 22.7% 24.0% 16.0% 14.9% ■ ■ I can access and afford sale and adequate I am able to afford my rent or mortgage housing (n=375) (n=375) ■ Not true or rarely true ■Sometimes true ■ Always or almost always true While housing and homelessness related services were common needs among survey respondents overall, specific subgroups endorsed these needs more frequently than others. City of Palo Alto OHS: Human Services Needs Assessment 2024 1 14 Item 19 Page 22 Packet Page 561 of 582 ITEM 19 Attachment A Most notably, all respondents who were currently experiencing homelessness endorsed housing assistance and homelessness outreach and services as needs (16 out of 16 each). Additionally, most respondents identifying as human service recipients endorsed housing assistance (81 %; 107 out of 132 who responded) and homelessness outreach and services (71 %; 88 out of 124 who responded) as needs. Additionally, most individuals experiencing homelessness indicated their needs for housing assistance (9 out of 13 surveyed) as well as "homelessness outreach and services" (7 out of 12 surveyed) were unmet. Qualitative data illuminated that these individuals have experienced long wait times and short stays at shelters. Additionally, some individuals interviewed indicated that they feel unsafe at local shelters, including those who identify as LGBTQ+. "I was on the (shelter) waitlist for two months. Usually, you can only stay 90 days." "The overnight shelter doesn't work for me because I am perceived as gay — (the other guests) will start harassing me." - Community Members Experiencing Homelessness Other specific subgroups, including individuals who identified as having a disability or being an older adult also reported higher rates of unmet needs with respect to housing assistance (disabled: 60%, older adult: 47%) compared to full sample of community members surveyed (30%). Individuals who did not report their race/ethnicity, those who identified as "another race" (including multiracial), and those who identified as Hispanic or Latinx also reported higher rates of unmet needs with respect to housing assistance (unknown race: 71 %; another race: 50%; Hispanic or Latinx: 50%). Additionally, most provider survey respondents endorsed housing assistance (80%; 20 out of 25 who responded) and homelessness outreach and services (80%; 20 out of 25 who responded) as needs among their client populations. Additionally, most respondents who were disabled indicated services did not meet their needs for housing assistance (60%; 9 out of 15 who responded). Additionally, disabled community members encounter difficulties accessing in - person services from providers who could support them within the community. "The unhoused can't do anything. Waitlists are long. Everything is difficult to navigate including the city website." - Service Provider The limited availability of below -market multifamily units and diverse housing options exacerbates needs for not only unhoused individuals but also low-income Palo Altans, making it increasingly difficult for young families, working professionals, and essential workers to secure housing within the community. The lack of affordable housing forces essential workers into long commutes, complicating employer efforts to retain talent, while families struggle to find suitable living arrangements. City of Palo Alto OHS: Human Services Needs Assessment 2024 15 Item 19 Page 23 Packet Page 562 of 582 ITEM 19 Attachment A Families and other community members who can't afford traditional housing increasingly turn to alternative living arrangements, such as RV homes or residing in neighboring cities. These realities further highlight the urgent need for more comprehensive and accessible housing solutions within the community. While projects like Mitchell Park Place, an affordable housing complex with plans for inclusive community spaces, offer a promising step toward addressing housing needs, these are not enough to meet the full scope of the need. Moreover, the affordable housing shortage poses a critical barrier to individuals living and participating in their community. Services tor Individuals with Disabilities More than half of participants (57%, 180 of 315) identified services for adults with disabilities as a personal need. Overall, this is fewer endorsements relative to other areas of need. However, adults with disabilities reported higher rates of unmet need in several categories relative to most other community members. Notably, approximately two-thirds (65%) of individuals with a disability indicated that their emergency financial assistance needs are unmet and a similar proportion reported that their needs with respect to elder abuse prevention (60%) and housing assistance (60%) are unmet— highlighted the intersectionality of needs among adults with disabilities, older adults, and individuals who are low-income. This subset of the population also identified unmet needs around sexual and reproductive healthcare (57%), mental supports for children/youth (57%), maternal and infant health care (50%), services for adults with adults with disabilities, and legal aid support (47%) at higher rates than their counterparts who did not identify as having a disability (apart from unhoused adults). Additionally, among human services recipients, a greater proportion identified services for adults with disabilities as an unmet need (300) compared to all other areas of unmet need (14-27%), indicating that of those who do access relevant services, there may be a greater gap in services in this area. "Many disabled people need support from trained professionals, but it's really hard to find the personnel to support those disabled members, including children and adults." - Service Provider For many disabled individuals in the community, accessing consistent, affordable support from trained professionals is difficult in Palo Alto and the Bay Area overall. Both children and adults, require professional support workers trained to address specific medical diagnoses and disabilities. However, finding such specialized disability support staff locally is often challenging. The high cost of living in Palo Alto has led to a shortage of healthcare providers, therapists, and direct support workers within the city. As a result, individuals with disabilities find that they must travel long distances to receive services. Relatedly, multiple HSNA participants noted that there are limited transportation options for individuals with disabilities (as well as older adults). City of Palo Alto OHS: Human Services Needs Assessment 2024 16 Item 19 Page 24 Packet Page 563 of 582 ITEM 19 Attachment A Older Adult Services A considerable proportion of service providers and community members named the sustainability of older adult services as an area in critical need of additional funding, resources, and attention countywide. Older adults feel increasingly isolated and find it harder to access essential services. A majority of those who responded to the community member survey endorsed older adult services as a key area of need (76%; 244 out of 320 who responded). Further, most service provider survey respondents (79%; 15 out of 19 who responded) endorsed older adult services as a need among their client populations. Despite the pervasiveness of the need for older adult services, there were no respondent subgroups for which the majority of respondents indicated that this need was completely/mostly met or unmet by existing services15 with one exception: the majority of respondents whose racial identity was not reported (or unknown) indicated their older adult service needs were unmet (54%; 8 out of 15 who responded). However, many respondents who participate in activities at the Avenidas Chinese Community Center reported that it has played an essential role in meeting their needs. Other older adults surveyed appreciate recreational opportunities including Pickleball Club and YMCA. "Avenidas provides classes and activities which are part of ancestral heritage. These experiences are important support for my emotional and mental health." - Community Member Some older adults who do not have family nearby and are not aware of where to access support, turn to their local library for support with relatively minor needs, including support with various tasks or challenges related to technology. This phenomenon may be due to libraries being more accessible and familiar, the helpfulness of individual staff at local libraries, a lack of awareness or familiarity with the senior center, or some combination of these factors (and possibly others). "A lot of seniors need five minutes of help from someone. Usually with tech stuff but a large range of tech stuff. Like the only way to pay for a ticket was online or calling from a phone...." - Service Provider Service providers expressed concerns about the growing population of older adults outpacing allocated resources, leading to longer wait times and other barriers to participation. Providers note that there are significant limits to what local agencies can provide with respect to transportation, social activities, medical services, and counseling for older adults. 15 For all Community Survey respondent subgroups, responses for this specific need was distributed evenly across "not met", "somewhat met", and "mostly or completely met", such that no single category constituted the majority of responses. City of Palo Alto OHS: Human Services Needs Assessment 2024 1 17 Item 19 Page 25 Packet Page 564 of 582 ITEM 19 Attachment A "Adequate funding for senior services countywide is the biggest challenge for us. We cannot charge fees for services under the Older Americans Act. Our level of staffing and availability of services is directly related to grant support we receive." - Service Provider Adding to these concerns, a community member highlighted the precarious situation many older adults face in Palo Alto, emphasizing the critical role of safety net services such as affordable housing, income programs like Social Security and SSI, healthcare, and case management. This perspective underscores the broader challenge of aging in Palo Alto, where a sudden change in circumstances can lead to a crisis, further straining the already limited support systems available. Mental Health Supports for Adults & Youth Both adult and youth mental health emerged as areas with moderate levels of unmet need from the needs assessment. Nearly all provider survey respondents endorsed adult mental health support as a need among their client populations (86%; 25 out of 29) and a majority of those who responded to the community member survey endorsed adult mental health support as an important area of need (75%; 236 out of 316). Additionally, one -in -ten community members (9%) indicated that they are rarely if ever able to access the mental health supports they need while nearly one third reported that can personally access the mental health support they need only "sometimes" (31 %) (see Figure 5). Figure 5. Community Survey Wellness Indicators: Mental Health Service Access 49.7% 30.9% 8_ ■ ■ I am able to access the mental health support I need [n=372) ■ Not true or rarely true ■ Sometimes true ■ Always or almost always true Some community survey respondent subgroups indicated that adult mental health support was unmet by existing services more often than other subgroups. Namely, most respondents who were experiencing homelessness indicated their needs for adult mental health support were unmet (8 out of 12 who responded). Additionally, more than half of respondents who City of Palo Alto OHS: Human Services Needs Assessment 2024 18 Item 19 Page 26 Packet Page 565 of 582 ITEM 19 Attachment A identified as "another race" (including multiracia116) indicated their needs for adult mental health support were unmet (53%; 9 out of 17 who responded). Approximately two-thirds of community members (65%) and some service providers also named youth mental health as a specific area of unmet need. The extent of the unmet need among youth may be underrepresented in the quantitative survey findings given the community survey was not administered to school age youth (under the age of 18). However, several participants who engaged with the qualitative research indicated that the stress associated with academic performance and other pressures is impacting many students from an early age. Simultaneously, they noted that resources are often insufficient to meet this growing demand particularly for lower income families who are impacted by the disparity in access to resources. These accounts underscore the need for a more comprehensive and accessible (geographically, financially) mental health support system that spans all stages of youth development in Palo Alto, from early childhood through adolescence. "Youth and teen mental health (services and supports] will definitely be needed in this community. It connects directly with some of the tragic suicides and the high pressure in the education system." - Community Member "When we think of mental health, we think of adults and teens. We need to think about elementary students. And then we also need to think about 0 through 5." - Community Member Food & Nutrition Services A majority of those who responded to the community member survey endorsed food and nutrition services as an area of need (71 %; 228 out of 320). Although this need was common among survey respondents overall, specific subgroups endorsed it more frequently than others. Most notably, all respondents who identified as Native American or Alaska Native only (Not Hispanic or Latinx) (19 out of 19) and nearly all who identified as Black or African American only (Not Hispanic or Latinx) (18 out of 19 who responded) endorsed food and nutrition services as a need. Further, most provider survey respondents (17 out of 24 who responded) endorsed food and nutrition services as a need among their client populations. Despite the pervasiveness of the need for food and nutrition assistance, there were no respondent subgroups for which the majority of respondents indicated that this need was 16 For this analysis, "another race" included: Middle Eastern or North African only (Not Hispanic or Latinx), Jewish only (Not Hispanic or Latinx), Native Hawaiian or Other Pacific Islander only (Not Hispanic or Latinx), and Multiracial (Not Hispanic or Latinx). City of Palo Alto OHS: Human Services Needs Assessment 2024 1 19 Item 19 Page 27 Packet Page 566 of 582 ITEM 19 Attachment A completely/mostly met or completely/mostly unmet by existing services.» However, a statistically significant larger proportion of individuals with a household income of $60,000 or less indicate their food and nutrition needs are either not met or only somewhat met relative to those with a higher income (74% vs. 60%). Additionally, among human services recipients, a greater proportion identified food and nutrition services as an unmet need relative to other areas of need (apart from services for adults with disabilities), indicating that of those who do access relevant services, there may be a greater gap in services that meet the need in this area. "The (food bank] is only open Monday to Friday." - Community Member Some unhoused community members reported traveling outside of the City of Palo Alto for higher quality and quantity of food, as well as the ability to access free food on Saturdays and Sundays when local Palo Alto based food and nutrition services are closed. Other community members noted a lack of transportation to food pantries. For all Community Survey respondent subgroups, responses for this specific need was distributed evenly across "not met", "somewhat met", and "mostly or completely met", such that no single category constituted the majority of responses. City of Palo Alto OHS: Human Services Needs Assessment 2024 120 Item 19 Page 28 Packet Page 567 of 582 ITEM 19 Attachment A Additional Areas of Unmet Need for Specific Demographic Subgroups Medical and Physical Health Care A majority of Palo Alto residents who responded to the community member survey endorsed medical/physical health care as an important area of need (78%; 245 out of 315 who responded), however medical/physical health care needs are somewhat or mostly met for nearly all respondents (88%), with one exception: the majority of respondents who were experiencing homelessness indicated their needs for medical/physical health care were unmet (58%; 7 out of 12 who responded). "Palo Alto citizens cannot get the appropriate medical therapeutic services, or they have to commute too far away." Community Member Immigrant populations reported facing further challenges in accessing medical care, particularly when language barriers are involved. One participant highlighted, "If you speak a language outside of just Spanish, Cantonese, or Mandarin, it can be really hard to navigate the healthcare system." This adds another layer of difficulty for non-English speaking residents in obtaining the care they need. Emergency Financial Assistance A majority of those who responded to the community member survey endorsed emergency financial assistance as an important area of need (73%; 229 out of 316 who responded), however specific subgroups endorsed this need more frequently than others. Most notably, the majority of respondents who identified as Black or African American only (Not Hispanic or Latinx) (100%; 19 out of 19 who responded) or Native American or Alaska Native only (Not Hispanic or Latinx) (100%; 19 out of 19 who responded) endorsed emergency financial assistance as a need. Most respondents with a household income of $120,000 or less (72%; 200 out of 279 who responded) also endorsed this need. Additionally, most service provider survey respondents (70%; 16 out of 23 who responded) endorsed emergency financial assistance as a need among their client populations. Some community survey respondent subgroups indicated that emergency financial assistance was unmet by existing services more often than other subgroups. Namely, the majority of respondents who were experiencing homelessness indicated their needs for emergency financial assistance were unmet (64%; 9 out of 14 who responded). Additionally, approximately two-thirds of respondents who were disabled indicated their needs for emergency financial assistance were unmet (65%; 11 out of 17 who responded). City of Palo Alto OHS: Human Services Needs Assessment 2024 1 21 Item 19 Page 29 Packet Page 568 of 582 ITEM 19 Attachment A Emergency financial assistance was not identified explicitly as a need by qualitative research participants, however the need for (non -emergency) financial support was implied in community members' reflections on the wealth gap and affordable housing issues plaguing the community. Intersectionality of Identity & Needs: Unhoused Individuals, Individuals with Disabilities, & Older Adults Additional findings specific to needs and services for Individuals with Disabilities and Older Adults can be found in the sections that follow; in contrast, additional findings for individuals experiencing homelessness can be found in the section above. Elder abuse prevention Most respondents experiencing homelessness and the majority of respondents who identified as disabled indicated that elder abuse prevention is an area of unmet need (63% and 60% respectively). This area of need was not mentioned in qualitative research activities nor open-ended responses in the community survey and would benefit from further exploration in subsequent assessments. In -home care assistance Overall, individuals who identified a need for in -home care assistance had greater rates of unmet need relevant to all other categories of need. Individuals experiencing homelessness had the highest rates of unmet need in this area (63%) followed by older adults (40%). V Community Connection, Isolation, and Inclusion Community connection and engagement, along with leisure/recreation, and cultural services or affinity spaces were the most widely shared needs identified by needs assessment participants, crosscutting all demographic subgroups. However overall levels of unmet need with respect to these service areas were relatively low. Nearly half of survey respondents indicated that they sometimes or almost always feel isolated and/or lonely (48%; 175 out of 365 who responded). Nearly half also indicated that they sometimes or rarely/never feel included and welcome in their community (45%; 166 out of 366 who responded) (see Figure 6). However, overall, this need is relatively well met across most subpopulations, apart from individuals experiencing homelessness and individuals with a City of Palo Alto OHS: Human Services Needs Assessment 2024 22 Item 19 Page 30 Packet Page 569 of 582 ITEM 19 Attachment A disability who experience the greatest rates of unmet need around community connection and belonging (30% and 24% respectively). Figure 6. Community Survey Wellness Indicators: Connection & Belonging 48.4% ,o 42.5 35,6% 12.3% 12.0% 33.3% I feel isolated crud/or lonely (n=365} l tee€ included and welcome in my community (n=366) ■ Not true or rare€y true ■ Sometimes true ■ Always or a€mast akways true A vast majority of community member survey respondents endorsed community engagement and connection as an area of need (87%; 295 out of 338 who responded). Similar proportions of respondents endorsed other engagement -related needs, including leisure and recreation (85%; 271 out of 319 who responded) as well as cultural services or affinity spaces (81%; 269 out of 331 who responded). These respondents reflected varying background characteristics (e.g., income, race, age, gender, sexual orientation, zip code), suggesting that community engagement and connection may be a broad and common need. This finding is further substantiated by the fact that an overwhelming majority of provider survey respondents also endorsed community engagement and connection as a need among their client populations (20 out of 22 providers who answered this question). "It feels like the community is not engaged with each other. Very individualistic and it can be very lonely. We are closed in our little, small groups- religious, cultural, or other affiliation, rather than having neighborhood connection." - Community Member Many qualitative research participants expressed appreciation for Palo Alto's local amenities, finding it a good place to raise a family, with high quality libraries and parks, however, many others also felt that opportunities for community connection and engagement were limited. High needs groups such as unhoused individuals, individuals with disabilities, and their caregivers as well as immigrants and those who work but do not live in Palo Alto (because they cannot afford to) —stated that they have limited opportunities to engage with other community members. The significant disparity between community members impacts not only the well-being of those whose needs are not met but also plays a role in undermining the community's overall sense of belonging and connection. Despite the pervasiveness of the need for community connection and engagement, more than half of respondents (51%) indicated that these needs were "somewhat met" by existing City of Palo Alto OHS: Human Services Needs Assessment 2024 123 Item 19 Page 31 Packet Page 570 of 582 ITEM 19 Attachment A services18. This was largely true for most subpopulations, with one exception: nearly all respondents identifying as Native American or Alaska Native (Not Hispanic or Latinx) indicated that their cultural service or affinity space needs were "mostly or completely met" by existing services (95%; 18 out of 19 who responded). Qualitative research activities provided some insight into specific ways in which specific subgroups with the community experience needs pertaining to community engagement. Some adults with disabilities, for example, stated that they struggle with isolation and limited community engagement due to a lack of recreational programs, trained support staff, and reliable transportation. Caregivers for disabled adults in the community often face significant challenges due to the lack of support services. This absence of adequate support can quietly contribute to feelings of isolation, which might make it more difficult for these families to feel fully connected to the broader community. This sense of isolation also affects immigrants and working adults who encounter barriers in accessing essential services. For many immigrants, limited language support and a lack of resources tailored to their needs present significant challenges. One participant shared, "In the communities that I have served, there are no resources to help immigrants if they're not in the school district." This issue is particularly pronounced for immigrant groups who face additional difficulties due to limited English proficiency and the need for affordable housing. "Outside of the school districts there are no services catering towards immigrants. There are many Latino/a/x centric services, but the community is divided along lines of disparities in race." - Service Provider Working adults, especially those in lower -paying jobs, experience similar challenges due to the high cost of living and lack of affordable housing. Multiple services providers noted that they themselves and their employees cannot afford to live in Palo Alto. "We do not live in Palo Alto. We cannot afford to live in Palo Alto. We're spending an hour to two hours driving to work and home. Some of us are up to four hours a day in cars. The amount of commute required for low -paying jobs is ridiculous, and without housing solutions, we are just going to continue to struggle to have employees come to Palo Alto." - Service Provider These accounts illustrate the interconnected challenges faced by different groups within the community, highlighting the compounded impact of limited services and resources, and affordable housing on the feasibility of low-income and high -needs community members and service providers alike to remain connected and supported. 18 For all Community Survey respondent subgroups, responses for these specific needs were distributed evenly across "not met", "somewhat met", and "mostly or completely met", such that no single category constituted the majority of responses. City of Palo Alto OHS: Human Services Needs Assessment 2024 1 24 Item 19 Page 32 Packet Page 571 of 582 ITEM 19 Attachment A HSRAP Funding Alignment with Needs & Recommendations for Future Funding Priorities Approximately three-quarters of all current HSRAP funding (FY24) goes toward services for individuals experiencing homelessness, children and youth services, and services for disabilities and special needs. There is significant alignment between FY24 HSRAP funding and some areas of greatest need identified by this assessment, including homelessness/housing and services for individuals with disabilities, and to a slightly lesser extent the need for services for older adults as well as food and nutrition services. However, some areas of need identified by this assessment including food and nutrition services would benefit from greater prioritization. Some areas of need identified by community members as part of this assessment are available in Palo Alto, in other North County cities (Mountain View, or Los Altos), or both. This is especially seen for those who have housing and emergency financial aid needs as well as food and nutrition needs. However, those who need to access physical health or mental health services often must travel to outside of the City Palo Alto to find the nearest provider. Additionally, there are very few providers offering services to older adults and individuals with disabilities in the Palo Alto Area. For this reason, greater emphasis on funding for these three areas —older adults, individuals with disabilities, and individuals with mental health —is strongly suggested in the coming year. Human Services Best Practices Recommendations >> Limit priority areas of funding to four or five. ii Develop guiding values*- **. Specifically, • Improving Accessibility • Focus on Equity • Cultural responsivity & centering those most impacted • Strength in partnership & communication • Sustainability Lean into —and align funding —with key frameworks. Specifically, • Social Determinants of Health***: • Economic Stability (e.g., housing instability, food insecurity, poverty), • Neighborhood & Built Environment (e.g., access to food, quality of housing), • Health Care Access & Quality • Social & Community Context (e.g., social cohesion) • Education Access & Quality • Consider also: Community Engagement, Power Sharing, & Capacity Building**** > Identify overarching strategic priorities. Specifically, • Health & wellbeing of the most vulnerable individuals (e.g., ensuring food, shelter, healthcare, supportive services & community connection; especially services for older adults and/or people with disabilities *- **, ***; • Equitable, inclusive, & accessible services (e.g., services encouraging diversity, equity, and inclusion in marginalized communities, including access to language services) *, ***; • Sustainability of grantee organizations****; • System Collaboration, Communication & Integration: promote effective practice, advance collaboration & reduce the number of silos*- **. "Fully sustaining systems [require] significant collaboration.... Ongoing trust and communication.. .are key to successful human service contracts and implement ation.4344"*** Sources: *https://www.sfhso.org/partnering-sfhsa **https://www.chhs.ca.gov/gujdingpr1nc1p1esstrateg1cpri0r1t1es/ ***https: //heal th.gov/heal thypeople/priority-areas/social-determinants-health *** https://www.ncbi.nim.nih.gov/pmc/articles/PMC6816239/ *****https://kresge.org/shes/default/ files/Strencq theninq-the-H uman-Services-Sector. pdf City of Palo Alto OHS: Human Services Needs Assessment 2024 25 Item 19 Page 33 Packet Page 572 of 582 ITEM 19 Attachment A Overall, based on the findings from this mixed method analysis as well as human services best practices (including tailored recommendations pertaining to guiding values, frameworks of relevance, and strategic priorities), we recommend that OHS emphasizing the following five service areas in the coming year: 1. Homelessness services & housing 2. Services for individuals who are disabled 3. Services for older adults19 4. Food & nutrition services 5. Mental health services A brief rationale for these recommendations can be found in the Recommended Areas for Sustained or Additional HSRAP Funding' below (far right column in Table 5), along with a snapshot of the total number of HSRAP grantees and total dollar amount awarded to each service area. For additional insight regarding these recommendations, please reference the findings corresponding to each service area in the Community Needs & Existing Services' section of this report (e.g., Figure 2 and narrative discussion of unmet needs). Additionally, areas for further consideration with respect to each of the priority service areas identified can be found in the following section of this report. Table 5. Frequency of Existing Service Programs by Service Area & Recommendations Ohl -. Homeless- 12 7 $392,306 High High: Overall homelessness ness/ services (including shelter) and Housing access to affordable housing is the most significant area of need for Palo Altans — and individuals experiencing homelessness have the greatest rates of unmet need in all other service areas. As such, this service area could very much benefit from sustained if not increased funding from HSRAP. Children, 12 6 $175,975 Medium Low: This is an area of Youth, proportionally lower rates of 19 It is important to note that while services for older adults appear to be less resourced based on HSRAP funding alone, older adults receive the more funding from the City of Palo Alto than any other demographic subgroup. The City of Palo Alto has long been funding Avenidas at approximately $550,000 per year as a professional services contract for a variety of programs that is decided upon by the City and Avenidas. City of Palo Alto OHS: Human Services Needs Assessment 2024 126 Item 19 Page 34 Packet Page 573 of 582 ITEM 19 Attachment A Family, & unmet need relative to other Community areas —across all population Services subgroups Older Adults 5 5 $159,309 High High: Given concerns about the growing population of older adults outpacing allocated resources and higher rates of unmet need (e.g., housing assistance), services and supports for older adults could be a service area where HSRAP could have a more significant impact in the future Disability 13 420 $187,654 High High: The rate of unmet need with respect to services for individuals with disabilities is higher than any other service area; this is an area where HSRAP could play a greater role in supporting high needs community members Food & 9 321 $174,493 High High: Individuals who access Nutrition services identified this as their second greatest unmet need, only surpassed by services with adults with disabilities; there is opportunity for HSRAP funding to make a greater impact in this service area Mental 13 322 $43,216 Medium Medium: Additional targeted, Health investment in this area would be appropriate to ensure that community members can readily access services locally Medical/ 15 223 $1 13,759 Medium Low to Medium: Although there Physical is substantial unmet need in this 20 Vista Center for the Blind is a program for the visionally impaired and is also counted under services for Older Adults. 21 La Comida is a senior nutrition program, and the Health Trust runs the Meals on Wheels program; both programs are also counted under services for Older Adults. 22 Adolescent Counseling Services ASAT is a program for youth addiction counseling and the Children's Health Council is a mental health program for youth; both programs are also counted under services for Children, Youth, Family, & Community Services. 23 Peninsula Healthcare Connection and Ravenswood help low-income/homeless individuals with Medical/Physical healthcare needs. City of Palo Alto OHS: Human Services Needs Assessment 2024 127 Item 19 Page 35 Packet Page 574 of 582 ITEM 19 Attachment A Health area, this is an area that is seemingly largely beyond HSRAP's sphere of influence and one in which there are numerous providers (including large institutions like Stanford) where service improvements would make the greatest difference -including improvements to wait times and affordability of care Emergency 14 0 N/a Medium Low to Medium: While there is Financial certainly need in this area, Assistance there are numerous service providers in the area and there many other areas where HSRAP would have a greater impact by providing sustained funding; if nothing else, OHScould help raise awareness of existing services (vs. direct investment in this area) Community Unclear 0 N/a Low Low to Medium: Although this is Engagement (depends the most common area of on how need, overall needs are largely this met and intensity of need is category lower than in other areas. is However, it may be worth concept considering tailored resources ualized) and funding for low-income families and older adults Legal 11 124 $20,500 Low Low: This need is mostly met Services and was not identified as a need in qualitative data gathering activities Employment 6 125 $38,473 Low Low: This need is mostly met and was not identified as a need in qualitative data gathering activities 24 Senior Adults Legal Assistance (SALA), also counted under services for Older Adults. 25 Downtown Streets Team (also included under Homelessness Services) City of Palo Alto OHS: Human Services Needs Assessment 2024 28 Item 19 Page 36 Packet Page 575 of 582 ITEM 19 Attachment A Areas for Further Consideration This section highlights service improvements needed pertaining to the main findings of this report and is paired with considerations for OHS, HRC, the City of Palo Alto, service providers, nonprofit partners, community members, and other stakeholders. These considerations are informed by evidence gathered and presented in this report as well as values of improving accessibility, cultural responsivity, and strength in partnership and communication. Barriers to Service Participation Service improvements needed: Overall, there is a need for a greater number of free services with minimal eligibility requirements and barriers to participation. In addition to greater capacity, greater visibility and awareness of local services —including types of services offered, eligibility requirements, application processes, location, and hours —is broadly needed. Additionally, there is a need for more culturally responsive and inclusive services that meet the needs of subgroups living and/or working within the City of Palo Alto, particularly unhoused and low-income individuals and families in need of human services, individuals with disabilities, older adults, immigrants, individuals who identify as Hispanic or Latino/a/x and multiracial, LGBTQ+ and those who identify as more than one of the previously mentioned. For consideration: Identify opportunities to strengthen partnerships, connectivity, and messaging regarding available services. Specifically, leverage and strengthen partnerships amongst service providers within the City of Palo Alto and across the County to expand the online resource directory26 with additional information about service offerings and program eligibility for each service. Additionally, consider opportunities to strengthen or more creatively leverage partnerships with private or philanthropic entities to extend the network of resources and support within the community. Furthermore, diversify modes of communication regarding available services to meet various populations and consider ways to strengthen partnerships that can provide a foundation for stronger messaging, awareness -building, and in turn service connection (e.g., a formalized partnership with local libraries). Additionally, strengthen service provider capacity to deliver culturally responsive, intersectional, and inclusive services that better meet the needs of diverse consumers with intersectional identities and needs —especially unhoused and low-income individuals who are also older adults, individuals with disabilities, or both, as well as those who identify an immigrant, Hispanic/Latino/a/x, LGBTQ+, or some combination. "We often work in silos but there are many challenges that are similar." "In larger cities there are point people to bridge resources/ideas and so on to create a more robust safety net. A convener or a system that makes convening more appetizing is a great opportunity for the city." 26 https://www.cityofpaloalto.org/Departments/Community-Services/Human-Services/Information-and-Referral City of Palo Alto OHS: Human Services Needs Assessment 2024 29 Item 19 Page 37 Packet Page 576 of 582 ITEM 19 Attachment A "It would be fabulous if the Office of Human Services was located at the Library. [The Downtown Library] is the end of line for two counties — San Mateo and Santa Clara County. It would be great if we advertised services and places where folks could access services. Advertising regionally would be easier than each city.., all the services besides housing could be better coordinated." "Public private partnerships are critical, there is a lot of capital/influence in the tech community, and it would be important to align the siloes to move collectively to solve the problem." - City of Palo Alto Stakeholders & Service Providers HntiSinci 4 1-I,mleenee Cor, roe Service improvements needed: While some needs are addressed through local resources for the unhoused food pantries, and other community assets that support those at risk of homelessness, these efforts are unable to meet the broader demand for services and supports relating to housing assistance and homelessness. Improvements are specifically needed with respect to affordable housing and more consistent shelter to meet the basic needs of individuals experiencing homelessness. Services for Individuals with DisabilitieF Service improvements needed: Greater quantity and improved capacity of services is needed to better meet the needs of adults and youth with disabilities. Specifically, improvements are needed in housing, health care, transportation, and recreation and after -school care for youth with disabilities, among others. For consideration: Increase resources and training (e.g., disability competency training) for providers working across these areas (e.g., health care, transportation, recreation, etc.) to strengthen the capacity and quality of services for individuals with disabilities. Older Adult Service, Service improvements needed: Funding for essential services for low-income older adults and those that live alone or do not have family nearby is limited and does not meet current needs. For consideration: Consider initiating peer support models (where older adults can provide support to one another) as well as intergenerational socialization activities. Expand access and capacity for service opportunities for older adults and improve service connections for consumers who live alone. This may include expanding access (physical space and financial accessibility) for older adults to connect. Additionally, provide resources to formal and informal community groups to facilitate creative ways to engage people (e.g., outdoor classes, group walks in a park), coordinate and implement wellness checks and outreach activities, and increase awareness of existing relevant services. City of Palo Alto OHS: Human Services Needs Assessment 2024 1 30 Item 19 Page 38 Packet Page 577 of 582 ITEM 19 Attachment A �nfnl Nonlfh cuir%r%nrfc for Adults &Youth Service improvements needed: An increase in the availability of free or otherwise affordable mental health support for all Palo Altans is the primary improvement needed in this area, along with increased supply (and accessibility) of services to meet the significant demand. For consideration: Revisit resources and funding as well as communication strategies to ensure those with the greatest need and greatest barriers (financial, transportation, etc.) can more easily access and receive mental health services within the City Palo Alto. Fr r r1 4 Nutrition Services Service improvements needed: Greater and more consistent availability of food and nutrition services within Palo Alto. For consideration: Extend hours to include at least one weekend day (e.g., Saturday) and increase funding to specifically improve accessibility and availability of food and nutrition services within the City of Palo Alto. Areas of Unmet Need for Specific Subgroups • Emergency Financial Assistance for Unhoused & Low -Income Individuals Service improvements needed: Additional services and resources needed to support Palo Altans in need of emergency financial assistance. • Medical/Physical Health Care for Unhoused & Law -Income Individuals Service improvements needed: More timely (shorter or no waitlist), affordable, accessible (local) and comprehensive care. For consideration: Increase the availability and capacity of programs that support people's ability to access and maintain safe and affordable housing. Consider expanding support to unhoused and low-income community members with shelter and housing search and application processes as well as search processes for identifying needed medical/physical health care. Community Connection, Isolation, & Inclusion While this assessment illuminated a variety of needs and gaps unique to specific subgroups of the community, it also highlighted that the most common need -although largely met -is a sense of community connection among community members from all backgrounds. Opportunities for inclusive and accessible community connection and engagement that attract and bring together a broad cross section of community members would lend itself to strengthening the social fabric and sense of community within Palo Alto. City of Palo Alto OHS: Human Services Needs Assessment 2024 1 31 Item 19 Page 39 Packet Page 578 of 582 ITEM 19 Attachment A For consideration: Identify new, localized, and culturally relevant opportunities for community members to connect and socialize. Given the lack of awareness of services, a well -publicized community fair hosted by the Office of Human Services in partnership with providers and the City Manager's office could be uniquely helpful in bringing a broad swath of community members together. Such opportunities could simultaneously encourage community volunteerism, raise awareness, and provide ways for community members in need to identify and seek needed services and resources available in Palo Alto and in Santa Clara County. Leverage and further expand opportunities and resources connected with the local library would maximize a local and known community hub. Qualitative research highlighted the local libraries and library staff as a strength and key resource for the community as well as older adults who seek community and support from libraries in the absence of other options. Expand affordable and accessible offerings for low-income families, caregivers, and youth with disabilities to fill specific community engagement needs of the community. City of Palo Alto OHS: Human Services Needs Assessment 2024 1 32 Item 19 Page 40 Packet Page 579 of 582 ITEM 19 Attachment A Appendix A: Community Member Snapshot Table Al. Palo Alto HSNA Community Survey & Census Demographics Age (years) 44 and younger 165 43% 32% 45-59 55 14% 21% 60-74 50 13% 14% 75 and older 61 16% 11% Unknown/Not Reported 54 14% N/a Gender Female 203 53% 51% Male 105 27% 49% Another Gender Identity28 12 3% N/a Unknown/Not Reported 65 17% N/a Race/Ethnicity White only 149 39% 49% Asian only 88 23% 35% Hispanic or Latinx (of any race) 20 5% 7% Native American or Alaska Native only 19 5% 0.1% Black or African American only 18 5% 2% Another Race29 18 5% N/a 27 Palo Alto 2020 Census: httQs://data.census.gov/rprofile/Palo Alto city, California?g=160XX000S0655282 28 Census data could not be retrieved for comparison because Community Survey respondents selected gender identity categories that were not available in the 2020 census data. 29 This category includes race/ethnic groups representing fewer than 11 respondents in each of the following groups: Native Hawaiian or Other Pacific Islander only (Not Hispanic or Latinx), Multiracial (Not Hispanic or Latinx), Jewish only (Not Hispanic or Latinx), Middle Eastern or North African only (Not Hispanic or Latinx). Census data could not be retrieved for comparison because Community Survey respondents selected racial categories that were not available in the 2020 census data (i.e., Jewish, Middle Eastern or North African) City of Palo Alto OHS: Human Services Needs Assessment 2024 l 33 Item 19 Page 41 Packet Page 580 of 582 ITEM 19 Attachment A Unknown/Not Reported 73 19% N/a Primary Language English 244 63% N/a Unknown/Not Reported 66 17% N/a Mandarin 34 9% N/a Another Language 16 4% N/a Cantonese 14 4% N/a Spanish 11 3% N/a Sexual Orientation Straight/Heterosexual 270 70% N/a Unknown/Not Reported 97 25% N/a Another Sexual Orientation 18 5% N/a Zip Code 94306 96 25% N/a 94303 78 20% N/a 94301 67 17% N/a Unknown/Not Reported 45 12% N/a 94304 31 8% N/a Another Zip Code 29 8% N/a 94302 18 5% N/a 94305 21 6% N/a Household Income Unknown/Not Reported 121 31% N/a $0-$30k 44 11% N/a $31-$60k 37 10% N/a $61-$90k 70 18% N/a $91-$120k 58 15% N/a City of Palo Alto OHS: Human Services Needs Assessment 2024 1 34 Item 19 Page 42 Packet Page 581 of 582 ITEM 19 Attachment A $121-$200k 22 6% N/a $201k 33 9% N/a Other Roles/Identities (not mutually exclusive) Parent 142 37% Human Services Recipient 139 36% N/a Behavioral Health Services Recipient 106 28% N/a Caregiver 73 19% N/a Disabled 34 9% N/a Homeless 17 4% N/a TOTAL 385 100 City of Palo Alto OHS: Human Services Needs Assessment 2024 35 Item 19 Page 43 Packet Page 582 of 582