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HomeMy WebLinkAbout2024-02-05 City Council and Public Improvement Corporation Agenda PacketCITY COUNCIL and PUBLIC IMPROVEMENT CORPORATION Special Meeting Monday, February 05, 2024 Council Chambers & Hybrid 5:30 PM Amended Agenda Amended agenda items appear below in RED Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference or in person. To maximize public safety while still maintaining transparency and public access, members of the public can choose to participate from home or attend in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. Masks are strongly encouraged if attending in person. 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 Public comments will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. All requests to speak will be taken until 5 minutes after the staff’s presentation. 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. TIME ESTIMATES Listed times are estimates only and are subject 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. CALL TO ORDER SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:50 PM) 1.Santa Clara County 2023 Synopsys Championship Science Fair 2023 STEM Winners from Palo Alto CLOSED SESSION (5:50 ‐ 6:50 PM) AA1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code Section 54956.8 Property: 4000 Middlefield Road, Palo Alto (Informally known as the Cubberley Site) Negotiating Party: Palo Alto Unified School District City Negotiators: (Ed Shikada, Chantal Cotton Gaines, Kristen O'Kane, Sunny Tong) Subject of Negotiations: Purchase, Exchange, and/or Lease Price and Terms of Payment New Item added AGENDA CHANGES, ADDITIONS AND DELETIONS PUBLIC COMMENT (6:50 ‐ 7:05 PM) Members of the public may speak to any item NOT on the agenda. 1‐3 minutes depending on # of speakers. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (7:05 ‐ 7:10 PM) Members of the public may not speak to the item(s). CONSENT CALENDAR (7:10 ‐ 7:15 PM) Items will be voted in one motion unless removed from the calendar by three Council Members. 2.Approval of Minutes from January 16, 2024 Meeting 3.Review and Acceptance of Annual Report on Development Impact Fees for Fiscal Year 2023 and Adoption of a Resolution Making Statutory Findings for Certain Funds. CEQA status ‐ Not a Project. 4.Approval of Amendment Number 1 to Contract Number S21180652 With Eric Gouldsberry Art Design (EGAD), in the Amount of $170,000 for Graphic Design Services to Extend the Term for Additional Two Years; for a Total Not‐to‐Exceed Amount of $410,000 over the Five‐year Term; CEQA Status – Not a Project 5.Approval of Amendment No. 2 to Contract S23184693 with Infosend, Inc. for Printing Services for the Utilities Department Programs and Projects to add $300,000 for a New Total Not to Exceed Amount of $555,000, and to Amend the Schedule of Rates. CEQA status: not a project. 6.Approval of Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) for Business Tax and Business Registry Certificate Program Fee Consulting Services in a Total Not‐To‐Exceed Amount of $860,555 Over a Three‐Year Term; CEQA Status – Not a Project 7.SECOND READING: Adopt Ordinances Amending Planned Community Ordinance 2343 for 2901‐2905 Middlefield Road and Establishing a Separate Planned Community Zoning Designation for 702 Ellsworth Place to Enable the Development of a new Single‐Story, Single‐Family Residence. CEQA Status ‐‐ Categorically Exempt Under CEQA Guidelines Sections 15061(b)(3), 15301, and 15303 (FIRST READING: December 11, 2023 PASSED 6‐ 0‐1, Veenker absent) Consent Questions 8.SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street, Trees, Shrubs, and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations) (FIRST READING: January 16, 2024 PASSED 5‐2, Lythcott‐ Haims, Tanaka no) 9.SECOND READING: Adopt an Ordinance to Expand the Public Art Commission (PAC) from Five to Seven Members (FIRST READING: January 16, 2024 PASSED 7‐0) 10.SECOND READING: Adoption of an Ordinance Amending Palo Alto Municipal Code Title 18 (Zoning) Chapters 18.14 (Housing Incentives), 18.76 (Permits and Approvals), and 18.77 (Processing of Permits and Approvals) to Implement Housing Element Program 1.3 Creating By‐Right Zoning Approval for Specific Housing Element Inventory Sites. CEQA Status: An Addendum to the City’s Comprehensive Plan Environmental Impact Report was Prepared for the 2023‐2031 Housing Element. (FIRST READING: January 22, 2024 PASSED 6‐1, Kou no) 11.SECOND READING: Adoption of an Ordinance Authorizing the Improvements to the Palo Alto Baylands as Part of the Horizontal Levee Pilot Project and Approval of a Cooperative Agreement with the Association of Bay Area Governments to Construct the Horizontal Levee Pilot Project (WQ‐22001); CEQA – exempt under Section 15133 (FIRST READING: January 22, 2024 PASSED 7‐0) CITY MANAGER COMMENTS (7:15 ‐ 7:30 PM) RECESS CITY COUNCIL MEETING AND CONVENE PUBLIC IMPROVEMENT CORPORATION MEETING ACTION ITEMS (Item 12: 7:30 ‐ 7:50 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 12.Approval of Fiscal Year 2023 Palo Alto Public Improvement Corporation's Annual Financial Report. CEQA Status ‐ Not a Project BREAK (5‐10 MINUTES) RECONVENE CITY COUNCIL MEETING ACTION ITEMS (Item 13: 8:00 ‐ 10:00 PM, Item 14: 10:00 ‐ 10:30 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 13.Policy and Services Committee Recommendations for Changes to the City Council Procedures and Protocols Handbook based on Prior City Council Referrals (Continued from December 18, 2023). CEQA Status ‐ Not a Project. 14.Policy and Services Committee Recommendation to the City Council to Approve a new Friendship Cities Program in Palo Alto. CEQA Status – Not a Project 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. 15.Quarterly Informational Report on Sustainability and Climate Action Plan (S/CAP) Implementation; CEQA status – Not a Project OTHER INFORMATION Standing Committee Meetings this week     Finance Committee February 6, 2024 CANCELED Public Comment Letters Schedule of Meetings AMENDED AGENDA ITEMS AA1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code Section 54956.8 Property: 4000 Middlefield Road, Palo Alto (Informally known as the Cubberley Site) Negotiating Party: Palo Alto Unified School District City Negotiators: (Ed Shikada, Chantal Cotton Gaines, Kristen O'Kane, Sunny Tong) Subject of Negotiations: Purchase, Exchange, and/or Lease Price and Terms of Payment New Item added 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 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. 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. 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. 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. 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 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.  1 February 05, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCIL andPUBLIC IMPROVEMENT CORPORATIONSpecial MeetingMonday, February 05, 2024Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in REDPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. To maximize public safety while still maintaining transparency andpublic access, members of the public can choose to participate from home or attend in person.Information on how the public may observe and participate in the meeting is located at the endof the agenda. Masks are strongly encouraged if attending in person. The meeting will bebroadcast 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)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby 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 strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDER SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:50 PM) 1.Santa Clara County 2023 Synopsys Championship Science Fair 2023 STEM Winners from Palo Alto CLOSED SESSION (5:50 ‐ 6:50 PM) AA1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code Section 54956.8 Property: 4000 Middlefield Road, Palo Alto (Informally known as the Cubberley Site) Negotiating Party: Palo Alto Unified School District City Negotiators: (Ed Shikada, Chantal Cotton Gaines, Kristen O'Kane, Sunny Tong) Subject of Negotiations: Purchase, Exchange, and/or Lease Price and Terms of Payment New Item added AGENDA CHANGES, ADDITIONS AND DELETIONS PUBLIC COMMENT (6:50 ‐ 7:05 PM) Members of the public may speak to any item NOT on the agenda. 1‐3 minutes depending on # of speakers. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (7:05 ‐ 7:10 PM) Members of the public may not speak to the item(s). CONSENT CALENDAR (7:10 ‐ 7:15 PM) Items will be voted in one motion unless removed from the calendar by three Council Members. 2.Approval of Minutes from January 16, 2024 Meeting 3.Review and Acceptance of Annual Report on Development Impact Fees for Fiscal Year 2023 and Adoption of a Resolution Making Statutory Findings for Certain Funds. CEQA status ‐ Not a Project. 4.Approval of Amendment Number 1 to Contract Number S21180652 With Eric Gouldsberry Art Design (EGAD), in the Amount of $170,000 for Graphic Design Services to Extend the Term for Additional Two Years; for a Total Not‐to‐Exceed Amount of $410,000 over the Five‐year Term; CEQA Status – Not a Project 5.Approval of Amendment No. 2 to Contract S23184693 with Infosend, Inc. for Printing Services for the Utilities Department Programs and Projects to add $300,000 for a New Total Not to Exceed Amount of $555,000, and to Amend the Schedule of Rates. CEQA status: not a project. 6.Approval of Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) for Business Tax and Business Registry Certificate Program Fee Consulting Services in a Total Not‐To‐Exceed Amount of $860,555 Over a Three‐Year Term; CEQA Status – Not a Project 7.SECOND READING: Adopt Ordinances Amending Planned Community Ordinance 2343 for 2901‐2905 Middlefield Road and Establishing a Separate Planned Community Zoning Designation for 702 Ellsworth Place to Enable the Development of a new Single‐Story, Single‐Family Residence. CEQA Status ‐‐ Categorically Exempt Under CEQA Guidelines Sections 15061(b)(3), 15301, and 15303 (FIRST READING: December 11, 2023 PASSED 6‐ 0‐1, Veenker absent) Consent Questions 8.SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street, Trees, Shrubs, and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations) (FIRST READING: January 16, 2024 PASSED 5‐2, Lythcott‐ Haims, Tanaka no) 9.SECOND READING: Adopt an Ordinance to Expand the Public Art Commission (PAC) from Five to Seven Members (FIRST READING: January 16, 2024 PASSED 7‐0) 10.SECOND READING: Adoption of an Ordinance Amending Palo Alto Municipal Code Title 18 (Zoning) Chapters 18.14 (Housing Incentives), 18.76 (Permits and Approvals), and 18.77 (Processing of Permits and Approvals) to Implement Housing Element Program 1.3 Creating By‐Right Zoning Approval for Specific Housing Element Inventory Sites. CEQA Status: An Addendum to the City’s Comprehensive Plan Environmental Impact Report was Prepared for the 2023‐2031 Housing Element. (FIRST READING: January 22, 2024 PASSED 6‐1, Kou no) 11.SECOND READING: Adoption of an Ordinance Authorizing the Improvements to the Palo Alto Baylands as Part of the Horizontal Levee Pilot Project and Approval of a Cooperative Agreement with the Association of Bay Area Governments to Construct the Horizontal Levee Pilot Project (WQ‐22001); CEQA – exempt under Section 15133 (FIRST READING: January 22, 2024 PASSED 7‐0) CITY MANAGER COMMENTS (7:15 ‐ 7:30 PM) RECESS CITY COUNCIL MEETING AND CONVENE PUBLIC IMPROVEMENT CORPORATION MEETING ACTION ITEMS (Item 12: 7:30 ‐ 7:50 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 12.Approval of Fiscal Year 2023 Palo Alto Public Improvement Corporation's Annual Financial Report. CEQA Status ‐ Not a Project BREAK (5‐10 MINUTES) RECONVENE CITY COUNCIL MEETING ACTION ITEMS (Item 13: 8:00 ‐ 10:00 PM, Item 14: 10:00 ‐ 10:30 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 13.Policy and Services Committee Recommendations for Changes to the City Council Procedures and Protocols Handbook based on Prior City Council Referrals (Continued from December 18, 2023). CEQA Status ‐ Not a Project. 14.Policy and Services Committee Recommendation to the City Council to Approve a new Friendship Cities Program in Palo Alto. CEQA Status – Not a Project 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. 15.Quarterly Informational Report on Sustainability and Climate Action Plan (S/CAP) Implementation; CEQA status – Not a Project OTHER INFORMATION Standing Committee Meetings this week     Finance Committee February 6, 2024 CANCELED Public Comment Letters Schedule of Meetings AMENDED AGENDA ITEMS AA1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code Section 54956.8 Property: 4000 Middlefield Road, Palo Alto (Informally known as the Cubberley Site) Negotiating Party: Palo Alto Unified School District City Negotiators: (Ed Shikada, Chantal Cotton Gaines, Kristen O'Kane, Sunny Tong) Subject of Negotiations: Purchase, Exchange, and/or Lease Price and Terms of Payment New Item added 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 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. 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. 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. 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. 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 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.  2 February 05, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCIL andPUBLIC IMPROVEMENT CORPORATIONSpecial MeetingMonday, February 05, 2024Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in REDPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. To maximize public safety while still maintaining transparency andpublic access, members of the public can choose to participate from home or attend in person.Information on how the public may observe and participate in the meeting is located at the endof the agenda. Masks are strongly encouraged if attending in person. The meeting will bebroadcast 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)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby 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 strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERSPECIAL ORDERS OF THE DAY (5:30 ‐ 5:50 PM)1.Santa Clara County 2023 Synopsys Championship Science Fair 2023 STEM Winners fromPalo AltoCLOSED SESSION (5:50 ‐ 6:50 PM)AA1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government CodeSection 54956.8 Property: 4000 Middlefield Road, Palo Alto (Informally known as theCubberley Site) Negotiating Party: Palo Alto Unified School District City Negotiators:(Ed Shikada, Chantal Cotton Gaines, Kristen O'Kane, Sunny Tong) Subject ofNegotiations: Purchase, Exchange, and/or Lease Price and Terms of Payment NewItem addedAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (6:50 ‐ 7:05 PM)Members of the public may speak to any item NOT on the agenda. 1‐3 minutes depending on # of speakers. Council reservesthe right to limit the duration of Oral Communications period to 30 minutes.COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (7:05 ‐ 7:10 PM)Members of the public may not speak to the item(s).CONSENT CALENDAR (7:10 ‐ 7:15 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.2.Approval of Minutes from January 16, 2024 Meeting3.Review and Acceptance of Annual Report on Development Impact Fees for Fiscal Year2023 and Adoption of a Resolution Making Statutory Findings for Certain Funds. CEQAstatus ‐ Not a Project.4.Approval of Amendment Number 1 to Contract Number S21180652 With Eric GouldsberryArt Design (EGAD), in the Amount of $170,000 for Graphic Design Services to Extend theTerm for Additional Two Years; for a Total Not‐to‐Exceed Amount of $410,000 over theFive‐year Term; CEQA Status – Not a Project5.Approval of Amendment No. 2 to Contract S23184693 with Infosend, Inc. for PrintingServices for the Utilities Department Programs and Projects to add $300,000 for a NewTotal Not to Exceed Amount of $555,000, and to Amend the Schedule of Rates. CEQA status: not a project. 6.Approval of Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) for Business Tax and Business Registry Certificate Program Fee Consulting Services in a Total Not‐To‐Exceed Amount of $860,555 Over a Three‐Year Term; CEQA Status – Not a Project 7.SECOND READING: Adopt Ordinances Amending Planned Community Ordinance 2343 for 2901‐2905 Middlefield Road and Establishing a Separate Planned Community Zoning Designation for 702 Ellsworth Place to Enable the Development of a new Single‐Story, Single‐Family Residence. CEQA Status ‐‐ Categorically Exempt Under CEQA Guidelines Sections 15061(b)(3), 15301, and 15303 (FIRST READING: December 11, 2023 PASSED 6‐ 0‐1, Veenker absent) Consent Questions 8.SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street, Trees, Shrubs, and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations) (FIRST READING: January 16, 2024 PASSED 5‐2, Lythcott‐ Haims, Tanaka no) 9.SECOND READING: Adopt an Ordinance to Expand the Public Art Commission (PAC) from Five to Seven Members (FIRST READING: January 16, 2024 PASSED 7‐0) 10.SECOND READING: Adoption of an Ordinance Amending Palo Alto Municipal Code Title 18 (Zoning) Chapters 18.14 (Housing Incentives), 18.76 (Permits and Approvals), and 18.77 (Processing of Permits and Approvals) to Implement Housing Element Program 1.3 Creating By‐Right Zoning Approval for Specific Housing Element Inventory Sites. CEQA Status: An Addendum to the City’s Comprehensive Plan Environmental Impact Report was Prepared for the 2023‐2031 Housing Element. (FIRST READING: January 22, 2024 PASSED 6‐1, Kou no) 11.SECOND READING: Adoption of an Ordinance Authorizing the Improvements to the Palo Alto Baylands as Part of the Horizontal Levee Pilot Project and Approval of a Cooperative Agreement with the Association of Bay Area Governments to Construct the Horizontal Levee Pilot Project (WQ‐22001); CEQA – exempt under Section 15133 (FIRST READING: January 22, 2024 PASSED 7‐0) CITY MANAGER COMMENTS (7:15 ‐ 7:30 PM) RECESS CITY COUNCIL MEETING AND CONVENE PUBLIC IMPROVEMENT CORPORATION MEETING ACTION ITEMS (Item 12: 7:30 ‐ 7:50 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 12.Approval of Fiscal Year 2023 Palo Alto Public Improvement Corporation's Annual Financial Report. CEQA Status ‐ Not a Project BREAK (5‐10 MINUTES) RECONVENE CITY COUNCIL MEETING ACTION ITEMS (Item 13: 8:00 ‐ 10:00 PM, Item 14: 10:00 ‐ 10:30 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 13.Policy and Services Committee Recommendations for Changes to the City Council Procedures and Protocols Handbook based on Prior City Council Referrals (Continued from December 18, 2023). CEQA Status ‐ Not a Project. 14.Policy and Services Committee Recommendation to the City Council to Approve a new Friendship Cities Program in Palo Alto. CEQA Status – Not a Project 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. 15.Quarterly Informational Report on Sustainability and Climate Action Plan (S/CAP) Implementation; CEQA status – Not a Project OTHER INFORMATION Standing Committee Meetings this week     Finance Committee February 6, 2024 CANCELED Public Comment Letters Schedule of Meetings AMENDED AGENDA ITEMS AA1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code Section 54956.8 Property: 4000 Middlefield Road, Palo Alto (Informally known as the Cubberley Site) Negotiating Party: Palo Alto Unified School District City Negotiators: (Ed Shikada, Chantal Cotton Gaines, Kristen O'Kane, Sunny Tong) Subject of Negotiations: Purchase, Exchange, and/or Lease Price and Terms of Payment New Item added 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 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. 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. 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. 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. 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 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.  3 February 05, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCIL andPUBLIC IMPROVEMENT CORPORATIONSpecial MeetingMonday, February 05, 2024Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in REDPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. To maximize public safety while still maintaining transparency andpublic access, members of the public can choose to participate from home or attend in person.Information on how the public may observe and participate in the meeting is located at the endof the agenda. Masks are strongly encouraged if attending in person. The meeting will bebroadcast 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)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby 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 strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERSPECIAL ORDERS OF THE DAY (5:30 ‐ 5:50 PM)1.Santa Clara County 2023 Synopsys Championship Science Fair 2023 STEM Winners fromPalo AltoCLOSED SESSION (5:50 ‐ 6:50 PM)AA1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government CodeSection 54956.8 Property: 4000 Middlefield Road, Palo Alto (Informally known as theCubberley Site) Negotiating Party: Palo Alto Unified School District City Negotiators:(Ed Shikada, Chantal Cotton Gaines, Kristen O'Kane, Sunny Tong) Subject ofNegotiations: Purchase, Exchange, and/or Lease Price and Terms of Payment NewItem addedAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (6:50 ‐ 7:05 PM)Members of the public may speak to any item NOT on the agenda. 1‐3 minutes depending on # of speakers. Council reservesthe right to limit the duration of Oral Communications period to 30 minutes.COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (7:05 ‐ 7:10 PM)Members of the public may not speak to the item(s).CONSENT CALENDAR (7:10 ‐ 7:15 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.2.Approval of Minutes from January 16, 2024 Meeting3.Review and Acceptance of Annual Report on Development Impact Fees for Fiscal Year2023 and Adoption of a Resolution Making Statutory Findings for Certain Funds. CEQAstatus ‐ Not a Project.4.Approval of Amendment Number 1 to Contract Number S21180652 With Eric GouldsberryArt Design (EGAD), in the Amount of $170,000 for Graphic Design Services to Extend theTerm for Additional Two Years; for a Total Not‐to‐Exceed Amount of $410,000 over theFive‐year Term; CEQA Status – Not a Project5.Approval of Amendment No. 2 to Contract S23184693 with Infosend, Inc. for PrintingServices for the Utilities Department Programs and Projects to add $300,000 for a NewTotal Not to Exceed Amount of $555,000, and to Amend the Schedule of Rates. CEQAstatus: not a project.6.Approval of Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL)for Business Tax and Business Registry Certificate Program Fee Consulting Services in aTotal Not‐To‐Exceed Amount of $860,555 Over a Three‐Year Term; CEQA Status – Not aProject7.SECOND READING: Adopt Ordinances Amending Planned Community Ordinance 2343 for2901‐2905 Middlefield Road and Establishing a Separate Planned Community ZoningDesignation for 702 Ellsworth Place to Enable the Development of a new Single‐Story,Single‐Family Residence. CEQA Status ‐‐ Categorically Exempt Under CEQA GuidelinesSections 15061(b)(3), 15301, and 15303 (FIRST READING: December 11, 2023 PASSED 6‐0‐1, Veenker absent) Consent Questions8.SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter8.04 (Street, Trees, Shrubs, and Plants) and Chapter 8.10 (Tree Preservation andManagement Regulations) (FIRST READING: January 16, 2024 PASSED 5‐2, Lythcott‐Haims, Tanaka no)9.SECOND READING: Adopt an Ordinance to Expand the Public Art Commission (PAC) fromFive to Seven Members (FIRST READING: January 16, 2024 PASSED 7‐0)10.SECOND READING: Adoption of an Ordinance Amending Palo Alto Municipal Code Title18 (Zoning) Chapters 18.14 (Housing Incentives), 18.76 (Permits and Approvals), and18.77 (Processing of Permits and Approvals) to Implement Housing Element Program 1.3Creating By‐Right Zoning Approval for Specific Housing Element Inventory Sites. CEQAStatus: An Addendum to the City’s Comprehensive Plan Environmental Impact Reportwas Prepared for the 2023‐2031 Housing Element. (FIRST READING: January 22, 2024PASSED 6‐1, Kou no)11.SECOND READING: Adoption of an Ordinance Authorizing the Improvements to the PaloAlto Baylands as Part of the Horizontal Levee Pilot Project and Approval of aCooperative Agreement with the Association of Bay Area Governments to Construct theHorizontal Levee Pilot Project (WQ‐22001); CEQA – exempt under Section 15133 (FIRSTREADING: January 22, 2024 PASSED 7‐0)CITY MANAGER COMMENTS (7:15 ‐ 7:30 PM)RECESS CITY COUNCIL MEETING AND CONVENE PUBLIC IMPROVEMENT CORPORATIONMEETINGACTION ITEMS (Item 12: 7:30 ‐ 7:50 PM)Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 12.Approval of Fiscal Year 2023 Palo Alto Public Improvement Corporation's Annual Financial Report. CEQA Status ‐ Not a Project BREAK (5‐10 MINUTES) RECONVENE CITY COUNCIL MEETING ACTION ITEMS (Item 13: 8:00 ‐ 10:00 PM, Item 14: 10:00 ‐ 10:30 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 13.Policy and Services Committee Recommendations for Changes to the City Council Procedures and Protocols Handbook based on Prior City Council Referrals (Continued from December 18, 2023). CEQA Status ‐ Not a Project. 14.Policy and Services Committee Recommendation to the City Council to Approve a new Friendship Cities Program in Palo Alto. CEQA Status – Not a Project 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. 15.Quarterly Informational Report on Sustainability and Climate Action Plan (S/CAP) Implementation; CEQA status – Not a Project OTHER INFORMATION Standing Committee Meetings this week     Finance Committee February 6, 2024 CANCELED Public Comment Letters Schedule of Meetings AMENDED AGENDA ITEMS AA1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code Section 54956.8 Property: 4000 Middlefield Road, Palo Alto (Informally known as the Cubberley Site) Negotiating Party: Palo Alto Unified School District City Negotiators: (Ed Shikada, Chantal Cotton Gaines, Kristen O'Kane, Sunny Tong) Subject of Negotiations: Purchase, Exchange, and/or Lease Price and Terms of Payment New Item added 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 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. 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. 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. 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. 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 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.  4 February 05, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCIL andPUBLIC IMPROVEMENT CORPORATIONSpecial MeetingMonday, February 05, 2024Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in REDPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. To maximize public safety while still maintaining transparency andpublic access, members of the public can choose to participate from home or attend in person.Information on how the public may observe and participate in the meeting is located at the endof the agenda. Masks are strongly encouraged if attending in person. The meeting will bebroadcast 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)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby 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 strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERSPECIAL ORDERS OF THE DAY (5:30 ‐ 5:50 PM)1.Santa Clara County 2023 Synopsys Championship Science Fair 2023 STEM Winners fromPalo AltoCLOSED SESSION (5:50 ‐ 6:50 PM)AA1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government CodeSection 54956.8 Property: 4000 Middlefield Road, Palo Alto (Informally known as theCubberley Site) Negotiating Party: Palo Alto Unified School District City Negotiators:(Ed Shikada, Chantal Cotton Gaines, Kristen O'Kane, Sunny Tong) Subject ofNegotiations: Purchase, Exchange, and/or Lease Price and Terms of Payment NewItem addedAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (6:50 ‐ 7:05 PM)Members of the public may speak to any item NOT on the agenda. 1‐3 minutes depending on # of speakers. Council reservesthe right to limit the duration of Oral Communications period to 30 minutes.COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (7:05 ‐ 7:10 PM)Members of the public may not speak to the item(s).CONSENT CALENDAR (7:10 ‐ 7:15 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.2.Approval of Minutes from January 16, 2024 Meeting3.Review and Acceptance of Annual Report on Development Impact Fees for Fiscal Year2023 and Adoption of a Resolution Making Statutory Findings for Certain Funds. CEQAstatus ‐ Not a Project.4.Approval of Amendment Number 1 to Contract Number S21180652 With Eric GouldsberryArt Design (EGAD), in the Amount of $170,000 for Graphic Design Services to Extend theTerm for Additional Two Years; for a Total Not‐to‐Exceed Amount of $410,000 over theFive‐year Term; CEQA Status – Not a Project5.Approval of Amendment No. 2 to Contract S23184693 with Infosend, Inc. for PrintingServices for the Utilities Department Programs and Projects to add $300,000 for a NewTotal Not to Exceed Amount of $555,000, and to Amend the Schedule of Rates. CEQAstatus: not a project.6.Approval of Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL)for Business Tax and Business Registry Certificate Program Fee Consulting Services in aTotal Not‐To‐Exceed Amount of $860,555 Over a Three‐Year Term; CEQA Status – Not aProject7.SECOND READING: Adopt Ordinances Amending Planned Community Ordinance 2343 for2901‐2905 Middlefield Road and Establishing a Separate Planned Community ZoningDesignation for 702 Ellsworth Place to Enable the Development of a new Single‐Story,Single‐Family Residence. CEQA Status ‐‐ Categorically Exempt Under CEQA GuidelinesSections 15061(b)(3), 15301, and 15303 (FIRST READING: December 11, 2023 PASSED 6‐0‐1, Veenker absent) Consent Questions8.SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter8.04 (Street, Trees, Shrubs, and Plants) and Chapter 8.10 (Tree Preservation andManagement Regulations) (FIRST READING: January 16, 2024 PASSED 5‐2, Lythcott‐Haims, Tanaka no)9.SECOND READING: Adopt an Ordinance to Expand the Public Art Commission (PAC) fromFive to Seven Members (FIRST READING: January 16, 2024 PASSED 7‐0)10.SECOND READING: Adoption of an Ordinance Amending Palo Alto Municipal Code Title18 (Zoning) Chapters 18.14 (Housing Incentives), 18.76 (Permits and Approvals), and18.77 (Processing of Permits and Approvals) to Implement Housing Element Program 1.3Creating By‐Right Zoning Approval for Specific Housing Element Inventory Sites. CEQAStatus: An Addendum to the City’s Comprehensive Plan Environmental Impact Reportwas Prepared for the 2023‐2031 Housing Element. (FIRST READING: January 22, 2024PASSED 6‐1, Kou no)11.SECOND READING: Adoption of an Ordinance Authorizing the Improvements to the PaloAlto Baylands as Part of the Horizontal Levee Pilot Project and Approval of aCooperative Agreement with the Association of Bay Area Governments to Construct theHorizontal Levee Pilot Project (WQ‐22001); CEQA – exempt under Section 15133 (FIRSTREADING: January 22, 2024 PASSED 7‐0)CITY MANAGER COMMENTS (7:15 ‐ 7:30 PM)RECESS CITY COUNCIL MEETING AND CONVENE PUBLIC IMPROVEMENT CORPORATIONMEETINGACTION ITEMS (Item 12: 7:30 ‐ 7:50 PM)Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, UnfinishedBusiness and Council Matters.12.Approval of Fiscal Year 2023 Palo Alto Public Improvement Corporation's AnnualFinancial Report. CEQA Status ‐ Not a ProjectBREAK (5‐10 MINUTES)RECONVENE CITY COUNCIL MEETINGACTION ITEMS (Item 13: 8:00 ‐ 10:00 PM, Item 14: 10:00 ‐ 10:30 PM)Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, UnfinishedBusiness and Council Matters.13.Policy and Services Committee Recommendations for Changes to the City CouncilProcedures and Protocols Handbook based on Prior City Council Referrals (Continuedfrom December 18, 2023). CEQA Status ‐ Not a Project.14.Policy and Services Committee Recommendation to the City Council to Approve a newFriendship Cities Program in Palo Alto. CEQA Status – Not a ProjectADJOURNMENTINFORMATION REPORTSInformation reports are provided for informational purposes only to the Council and the public but are not listed for actionduring this meeting’s agenda.15.Quarterly Informational Report on Sustainability and Climate Action Plan (S/CAP)Implementation; CEQA status – Not a ProjectOTHER INFORMATIONStanding Committee Meetings this week    Finance Committee February 6, 2024 CANCELEDPublic Comment LettersSchedule of MeetingsAMENDED AGENDA ITEMSAA1.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code Section 54956.8Property: 4000 Middlefield Road, Palo Alto (Informally known as the Cubberley Site) NegotiatingParty: Palo Alto Unified School District City Negotiators: (Ed Shikada, Chantal Cotton Gaines, KristenO'Kane, Sunny Tong) Subject of Negotiations: Purchase, Exchange, and/or Lease Price and Terms of Payment New Item added 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 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. 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. 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. 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. 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 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.  5 February 05, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. City Council Staff Report Report Type: SPECIAL ORDERS OF THE DAY Lead Department: City Clerk Meeting Date: February 5, 2024 Report #:2401-2543 TITLE Santa Clara County 2023 Synopsys Championship Science Fair 2023 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 2023 Synopsys Championship Science Fair STEM Winners from Palo Alto. Name Project Title Rrishi Anand Unsupervised Detection of Abnormal Crop Changes from Aerial Images Oscar Anderson Impact of Mycorrhizae on Terrestrial Carbon Sinks Under Elevated CO2 Levels: How Fungi Can Slow Climate Change Connor Chin A Signal Processing Modeling and Feedback System for Stringed Instrument Musicians Jacob Chiu Water Boiling Device with Heat Exchanger-Based Preheating to Produce Potable Water with Increased Energy Efficiency David Clark The Seed Speader Carina Gross AVIAN: Aerial Video Identification Automated Network-Novel Machine Learning to Monitor Bird Population by Flight Pattern Roy Gross Tactical Drone Detection and Tracking using Machine-Learned Radio Interferometry: Lessons from Ukraine Ryan Kim BeeSafe: Detecting Bee Diseases with Multi-Scale Object Detection and Generative Adversarial Networks (GANs) Alan Lee Connectedness in Friends-and-Strangers Graph of Spiders and Complements Lauren Lee Probiotics Protect Tomato Growth from Sodium Dodecyl Sulfate- Induced Stress Maya Mazin Seaweed and its Absorption of CO2 in Worms Divij Motwani Ankh- Navigation and Obstacle Avoidance for the Visually Impaired Adrit Rao Automated Segmentation and Measurement of Aortic Aneurysms in Computed Tomography Angiography Using Deep Learning Item 1 Item 1 Staff Report        Item 1: Staff Report Pg. 1  Packet Pg. 6 of 263  Dalia Saal Can Argon Flushing a Fridge Reduce Food Waste? Daniel Siegel OctoGrasp: The Design and Construction of a Cephalopod- Inspired Prosthetic Arm Danny Stein Can Mealworms Compost Different Types of Foam, and What Type of Foam is Composted the Fastest Stella Su Cardiac Gene Regulatory Programs in Mammalian Embryonic Development and Disease Risk Association Aleksey Valouev An AI-Powered Network of Sensors with Wireless Data Transmission for Real-Time Wildfire Detection Vince Wu Development of a Predictive Model of Honeybee Foraging Activity Under Different Climate Conditions Amelia Yu Developing and Using a Novel Convolutional Neural Network Program to Discover and Confirm Exoplanets Agastya Goel RSK – Completeness and Cycle Decompositions ATTACHMENTS: None. APPROVED BY: Mahealani Ah Yun Item 1 Item 1 Staff Report        Item 1: Staff Report Pg. 2  Packet Pg. 7 of 263  City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: February 5, 2024 Report #:2401-2524 TITLE Approval of Minutes from January 16, 2024 Meeting RECOMMENDATION That the minutes be reviewed and approved. ATTACHMENTS Attachment A: January 16, 2024 Draft Action Minutes APPROVED BY: Mahealani Ah Yun Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 1  Packet Pg. 8 of 263  CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 5 Special Meeting January 16, 2024 The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:30 P.M. Present In Person: Burt, Kou, Lauing, Lythcott-Haims, Stone, Tanaka Present Remotely: Veenker Absent: Consent Calendar Council Member Kou registered a no vote on Agenda Item Number 11, 12. Council Member Tanaka registered a no vote on Agenda Item Number 4, 6, 10. MOTION: Council Member Burt moved, seconded by Mayor Stone to approve Agenda Item Numbers 1-12. MOTION PASSED ITEMS 1-3, 5, 7-9: 7-0 MOTION PASSED ITEMS 4, 6, 10: 6-1, Tanaka no MOTION PASSED ITEMS 11-12: 6-1, Kou no 1. Approval of Minutes from December 11, 2023, December 18, 2023, and December 19, 2023 Meetings 2. Adopt an Ordinance to Expand the Public Art Commission (PAC) from Five to Seven Members; CEQA status - not a project 3. Approval of Contract Amendment Number 1 to Contract Number C24189060 with US Bank and its Wholly owned Subsidiary Elavon for General Banking and Merchant Services and Approval of Contract Amendment Number C24189061 with Wells Fargo for Lockbox Services; CEQA Status – Not a Project. 4. Approval of Professional Services Contract with Energy and Environmental Economics, Inc. (E3) for a Not-to-Exceed Amount of $945,286 for the Sustainability and Climate Action Plan (S/CAP) Funding Study; Amendment to Professional Services Contract with Sterling Communications, Inc. to Amend the Scope, Extend the Timeline, and Increase Total Not- to-Exceed Compensation by $75,000 (from $85,000 to $160,000); and a Budget Item 2 Attachment A - January 16, 2024 Draft Action Minutes        Item 2: Staff Report Pg. 2  Packet Pg. 9 of 263  DRAFT ACTION MINUTES Page 2 of 5 Sp. City Council Meeting Draft Action Minutes: 01/16/2024 Amendment in the Electric Fund for Acceptance of $75,000 DEED grant for S/CAP Funding Study; CEQA Status – Not a Project. 5. Accept the City of Palo Alto’s Audited Financial Statements as of June 30, 2023 and the Macias, Gini & O’Connell Management Letter; Approve the FY 2023 Annual Comprehensive Financial Report (ACFR)and Amendments to the FY 2023 Budget in Various Funds; and Adopt a Resolution to Extend and Amend the Development Services Reserve Fund Policy, as Recommended by the Finance Committee; CEQA Status – Not a Project 6. Approval of Amendment No. 2 with Pets in Need Contract (C19174493) to extend the term through March 2024 and increase the compensation by $342,501 for operations of the Palo Alto Animal Shelter, for a Not-to-Exceed Amount of $4,431,872; CEQA status – not a project. 7. Adopt a Resolution Approving an Amendment to the City’s 2009 California-Oregon Transmission Project Long-Term Layoff Agreement to Extend the City’s Layoff of its Share of the California Oregon Transmission Project (COTP) until 2034 and to Receive Annual Market Payments as Recommended by the Utilities Advisory Commission (UAC); CEQA Status – Not a Project 8. Approval of Recommendations on Process for 2024 Council Priority Setting Retreat as Recommended by Policy & Services Committee (CEQA Status – Not a Project) 9. Approval of the Office of the City Auditor's Investment Management Audit Report as Recommended by the Policy & Services Committee (CEQA Status - Not a Project) 10. SECOND READING: Adoption of an Ordinance Amending Palo Alto Municipal Code (PAMC) Section 18.42.160 (Safe Parking) to Permanently Establish the Congregation-Based Safe Parking Program and Establishing Regulations Related to Safe Parking, Including a Maximum Number of Vehicles Per Night on Each Site (FIRST READING: December 4, 2023 PASSED 6-1, Tanaka no) 11. SECOND READING: Adoption of an Ordinance Amending Chapters 4.10 (Licenses Obtained by Application to Chief of Police), 4.30 (Soliciting Funds), and Chapter 4.32 (Soliciting Information for Commercial Purposes); and Adding Chapter 4.12 to Title 4 (Business Licenses and Regulations) of the Palo Alto Municipal Code to Comply With Updates to the Law, Including 2018 Senate Bill 946 (Sidewalk Vendors). CEQA status – categorically exempt. (FIRST READING: December 11, 2023 PASSED 5-1-1, Kou no, Veenker absent) 12. SECOND READING: Adoption of an Urgency Ordinance and an Interim Ordinance That Allows the Director of Planning and Development Services to Extend Planning Entitlements for Housing Development Projects up to an Additional 18 Months. Environmental Review: Exempt from CEQA in Accordance with CEQA Guidelines 15061(b)(3). (FIRST READING: December 11, 2023 PASSED 5-1-1, Kou no, Veenker absent) Item 2 Attachment A - January 16, 2024 Draft Action Minutes        Item 2: Staff Report Pg. 3  Packet Pg. 10 of 263  DRAFT ACTION MINUTES Page 3 of 5 Sp. City Council Meeting Draft Action Minutes: 01/16/2024 Action Items 13. Tree Protection Ordinance Year One Review and Recommendations; Adoption of an Ordinance Amending Chapter 8.04 (Street Trees, Shrubs, and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations of the Palo Alto Municipal Code to Update the Allowable Reasons for Removal of Protected Trees, Make Clarifying Changes, and to Make Clerical Updates; and Adoption of a Resolution amending the Administrative Penalty Schedule to Increase the Penalties for Violations of Title 8 of the Palo Alto Municipal Code; CEQA Status – Not a Projects MOTION: Council Member Kou moved, seconded by Vice Mayor Lauing to: a. Adopt the proposed changes to Palo Alto Municipal Code amending Chapter 8.04 and Chapter 8.10 of the Palo Alto Municipal Code and adopt a resolution amending the Administrative Penalty Schedule to increase the penalties for violations of Title 8 of the Palo Alto Municipal Code; and b. Adopt the changes proposed to Section 8.10.070 as addressed in the staff report; and c. Direct staff to engage with the community and through the Planning & Transportation Commission for suggestions and proposals to educate and incentivize residents to maintain and increase our canopy including ways compatible with development. MOTION PASSED: 5-2, Tanaka, Lythcott-Haims no 14. Approval of a Substation Improvement Agreement With Tesla Inc. to Install Improvements and Reserve Capacity at Hanover Substation, and Approval of a Fiscal Year 2024 Budget Amendment in the Electric Fund to Establish the Hanover Substation Upgrade Project (EL-24001); CEQA Status – Exempt under CEQA Guideline Sections 15301 and 15302 Council Member Veenker recused herself on Item 14. MOTION: Council Member Tanaka moved, seconded by Council Member Lythcott-Haims to: 1. Approve and authorize the City Manager or their designee to execute the Substation Improvement Agreement (SIA) and attached Capacity Reservation Agreement between the City of Palo Alto and Tesla for the design and construction of a substation improvements at the City of Palo Alto’s Hanover Substation (Attachment A). 2. Amend the Fiscal Year 2024 Budget Appropriation for the Electric Fund (requires a 2/3 vote) by: Item 2 Attachment A - January 16, 2024 Draft Action Minutes        Item 2: Staff Report Pg. 4  Packet Pg. 11 of 263  DRAFT ACTION MINUTES Page 4 of 5 Sp. City Council Meeting Draft Action Minutes: 01/16/2024 a. Establish the Hanover Substation Upgrade Project (EL-24001) in the amount of $15,000,000; and b. Decrease the Electric Fund Operations Reserve by $15,000,000. MOTION PASSED: 6-1, Veenker recused Adjournment: The meeting was adjourned at 8:16 P.M. Item 2 Attachment A - January 16, 2024 Draft Action Minutes        Item 2: Staff Report Pg. 5  Packet Pg. 12 of 263  DRAFT ACTION MINUTES Page 5 of 5 Sp. City Council Meeting Draft Action Minutes: 01/16/2024 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. Item 2 Attachment A - January 16, 2024 Draft Action Minutes        Item 2: Staff Report Pg. 6  Packet Pg. 13 of 263  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Administrative Services Meeting Date: February 5, 2024 Report #:2308-1858 TITLE Review and Acceptance of Annual Report on Development Impact Fees for Fiscal Year 2023 and Adoption of a Resolution Making Statutory Findings for Certain Funds. CEQA status - Not a Project. RECOMMENDATION Staff recommends that the City Council review and accept the Annual Report on Development Impact Fees for the period ending June 30, 2023 (Attachment A) and adopt the resolution making statutory findings for certain development impact fee funds (Attachment B). EXECUTIVE SUMMARY This report contains information on the City of Palo Alto’s Development Impact Fees for the Fiscal Year (FY) 2022-23. This report meets the annual reporting requirements in Government Code section 66006. BACKGROUND Local agencies commonly impose fees on development projects to help offset the costs of funding the public facilities impacted by those developments. These fees are known as development impact fees. State law (Government Code section 66000 et seq. or “the Mitigation Fee Act”) requires local agencies that impose development impact fees to prepare an annual report providing specific information about those fees. Within 180 days after the close of the fiscal year, the agency that collected the fees must make available to the public the following information regarding each fund or account:  Brief description of the type of fee in the fund.  Amount of the fee.  Beginning and ending balance in the fund. Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 1  Packet Pg. 14 of 263   Amount of fees collected, and interest earned. Identification of each public improvement on which fees were expended and the amount of the expenditure on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. Identification of an approximate date by which the construction of a public improvement will commence, if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement. Description of each interfund transfer or loan made from the account or fund, including the public improvement on which the loaned funds will be expended, and in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on the loan. Amount of any refunds made due to inability to expend fees within the required time frame. The Mitigation Fee Act further requires that the City Council review the annual report at its first regularly scheduled public meeting not less than 15 days after the information is made available to the public. In addition to the annual reporting requirement, the Mitigation Fee Act requires, for the fifth fiscal year following the first deposit into the fund and every five years thereafter, that the City Council make findings with respect to any portion of the fee(s) remaining unexpended, whether committed or uncommitted. The findings must: Identify the purpose to which the fee is to be put; Demonstrate a nexus between the fee and the purpose for which it was originally charged; and Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements Designate the approximate dates on which the anticipated funding is expected to be deposited into the fund. If the agency no longer needs the funds for the purposes collected, or if the agency fails to make required findings, or to perform certain administrative tasks prescribed, the agency may be required to undertake a refunding process as set forth in the statute. Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 2  Packet Pg. 15 of 263  ANALYSIS Annual Report (Government Code section 66006) The annual report for FY 2023 is included as Attachment A. Staff published the report on the City’s website on December 29, 2023. The report contains the statutorily required information for the following fees: Stanford Research Park/El Camino Real traffic impact fees (PAMC Ch. 16.45): Fee for new nonresidential development in the Stanford Research Park/El Camino Real Service Commercial zone, to fund capacity improvements at eight intersections. The City ceased collecting effective fiscal year 2020. San Antonio/West Bayshore Area traffic impact fees (PAMC Ch. 16.46): Fee for new nonresidential development in the San Antonio/West Bayshore area to fund capacity improvements at four intersections. The City ceased collecting effective fiscal year 2020. Housing impact fees imposed on commercial developments (PAMC Ch. 16.65): Fee on commercial and industrial development to contribute to offset the demand that new jobs create for low income and moderate-income in the City. General Government facilities: (PAMH Ch. 16.58) – Fee on residential and non-residential development to fund facilities associated with municipal administration. Parks, Community Centers, and Libraries impact fees (PAMC Ch. 16.58): Fee on new residential and non-residential development to provide community facility funds for parks, community centers, libraries, public safety, and general government. Residential (Rental) impact fees (PAMC Ch. 16.65) Fee on rental residential developments (including mixed use with rental housing) to offset the demand that new market-rate rental housing creates for low and moderate-income housing in the City. Charleston-Arastradero Corridor pedestrian and bicyclist safety fees (PAMC Ch. 16.60): Fee on new development and re-development within the Charleston-Arastradero Corridor to provide for pedestrian and bicyclist improvements. Citywide Transportation impact fees (PAMC Ch 16.59): Fee on development in all parts of the City to fund transportation projects and programs to reduce congestion. New Public Safety facilities (PAMH Ch. 16.58): Fee on residential and non-residential development to fund police and fire facilities, including fire apparatus and vehicles. University Avenue Parking In-Lieu Fund (PAMC Ch. 16.57): Fees collected from non- residential development within the University Avenue Parking Assessment District, in lieu of providing the required number of parking spaces. Residential housing in-lieu fees (PAMC Ch. 16.65): Fee on residential developments in-lieu of providing required below-market rate units to low- and moderate-income households. Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 3  Packet Pg. 16 of 263  And in the interest of transparency, the report includes also includes information for the following funds, although the Mitigation Fee Act’s reporting requirements do not apply: Residential housing in-lieu fees (PAMC Ch. 16.65): Fee on residential developments in-lieu of providing required below-market rate units to low-and moderate-income households. Public Art Fund (PAMC Ch. 16.61): Fees imposed on new commercial developments (including mixed use projects), including new construction, remodels, additions and reconstruction that (i) have a floor area of 10,000 sq. ft. or more, and (ii) have a value of $200,000 or more, exclusive of costs for architecture, design, engineering, and required studies; and all new residential projects of five or more units to fund art for private developments. Parkland Dedication (CA Government Code Section 66477-Quimby Act): Fees on parkland dedication imposed on new residential and non-residential development. Water and Wastewater Collection (California Government Code Section 66000): Capacity fees charged to developers that are adding load to the water and sewer systems effective July 1,2005. The Stanford Research Park/ El Camino Fund has an unexpended balance of $1,220,842 that was collected prior to FY 2023. The San Antonio/West Bayshore Fund has an unexpended balance of $407,697 that was collected prior to FY 2023. The Commercial Housing Impact Fee Fund has an unexpended balance of $2,228,048 that was collected as of FY 2023. The Citywide Transportation Fund has an unexpended balance of $1,622,961 that was collected as of FY 2023. The University Avenue Parking In-Lieu Fund has an unexpended balance of $15,664,946 that was collected in FY 2023 and prior. FISCAL/RESOURCE IMPACT Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 4  Packet Pg. 17 of 263  If the council does not adopt the proposed resolution (Attachment B) making the five-year findings, then City may be required undertake the refund procedures described in Government Code section 66001(e). The total potential refund across the five development impact fees at issue is $21,144,494. STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 5  Packet Pg. 18 of 263  City of Palo Alto Development Impact Fee Report for Period Ending June 30, 2023 Stanford Research Park/El Camino Real Impact Fee San Antonio/West Bayshore Area Impact Fee Description of the Type of Fee Traffic impact fees imposed on new non‐residential development in the Stanford Research Park/El Camino Real CS zone to fund improvements at eight identified intersections. (PAMC 16.45) Traffic impact fees imposed on new non‐residential development in the San Antonio/West Bayshore Areas to fund capacity improvements at four identified intersections. (PAMC 16.46) $12.85 per square foot; City ceased collecting effective FY $2.65 per square foot; City ceased collecting effective FY Amount of the Fee Fund Balance July 1, 2022 1,147,182 407,407 FY 2023 Activity Revenues Interest Earnings Unrealized Gain/(Loss) Investments Total Revenues 24,157 73,660 8,625 (8,335) 290 Expenditures 0 0 Total Expenditures 0 0 Ending Balance June 30, 2023 1,220,842 407,697 Reserves 0 0 Total Reserves 0 0 Net Funds Available 1,220,842 407,697 Item 3 Attachment A - FY 2023 Development Impact Fee Annual Report Use of Fee Summary        Item 3: Staff Report Pg. 6  Packet Pg. 19 of 263  City of Palo Alto Development Impact Fee Report for Period Ending June 30, 2023 Commercial Housing Fee General Government Facility Development Fee Description of the Type of Fee Fees imposed on commercial and industrial development to the demand that new jobs create for low and moderate‐income housing in the City; fees collected support levels of affordable housing projects. (PAMC 16.65) Fees imposed on residential and non‐residential development to fund facilities associated with municipal administration. (PAMC 16.58) Amount of the Fee Hotel / Retail / Other Residential: Non‐Residential:$24.97 per sq. ft.Single family $1,600 per unit Multi‐family $1,279 per unit under 750 sq. ft. exempt);Office/R&D: $74.01 per sq. ft. Non‐residential: Commercial $892 per 1,000 sq. ft. or fraction thereof $300 per 1,000 sq. ft. or fraction thereof $1,192 per 1,000 sq. ft. or fraction Fund Balance July 1, 2022 27,113,503 111,930 FY 2023 Activity Revenues Fees Collected 0 73,411 (115,201) (41,790) 11,592 9,235 Interest Earnings Unrealized Gain/(Loss) Investments Total Revenues Expenditures Salaries and Benefit Liability Insurance Total Expenditures (36,872) (38,102) 0 0 Ending Balance June 30, 2023 27,033,611 121,165 Reserves Notes Receivable (see detail below) Reappropriations Total Reserves (23,629,563) (24,805,563) 0 0 Net Funds Available 2,228,048 121,165 Notes Receivable Detail: $1,290,000 for 2811 Alma; $4,137,254 for 801 Alma; for Buena Vista Mobile Home Park; $10,502,309 Court Item 3 Attachment A - FY 2023 Development Impact Fee Annual Report Use of Fee Summary        Item 3: Staff Report Pg. 7  Packet Pg. 20 of 263  City of Palo Alto Development Impact Fee Report for Period Ending June 30, 2023 Community Facilities Community Facilities Parks Development Fee Community Centers Development Fee Description of the Type of Fee of the Fee Fees imposed on new residential and non‐residential development approved after Jan 28, 2002 for Parks. (PAMC 16.58) Fees imposed on new residential and non‐residential development approved after Jan 28, 2002 for Community Centers. (PAMC 16.58) Residential: Single family $62,039.67 per unit. (ADUs under sq ft exempt) Residential: Single family $4795.06 per unit. under 750 sq ft exempt); Multi‐Family $3,547.13 per unit Non‐residential: Commercial/Industrial $18,190 per net new 1,000 sq ft; Hotel/Motel $3,100 per 1,000 sq ft.Non‐residential: Commercial/industrial $1410 per 1,000 sq ft; Hotel/Motel $240 per 1,000 sq ft. Fund Balance July 1, 2022 3,810,535 739,193 FY 2023 Activity Revenues Fees Collected 439,967 34,559 16,041 (18,174) 32,426 Interest Earnings Unrealized Gain/(Loss) Investments Total Revenues 511,552 Expenditures Operating Transfer to Capital Projects Fund Total Expenditures (2,650,333) (2,650,333) 0 0 Ending Balance June 30, 2023 1,671,754 771,619 Reserves 0 Total Reserves 0 0 Net Funds Available 1,671,754 771,619 Item 3 Attachment A - FY 2023 Development Impact Fee Annual Report Use of Fee Summary        Item 3: Staff Report Pg. 8  Packet Pg. 21 of 263  City of Palo Alto Development Impact Fee Report for Period Ending June 30, 2023 Community Facilities Library Development Fee Residential Housing Fee Description of the Type of Fee Fees imposed on new residential and non‐residential development approved after January 28, 2002 for Libraries. (PAMC 16.58) Fees imposed on all rental residential developments mixed‐use with rental housing) to offset the that the new market‐rate rental housing creates for ‐income and moderate‐income housing in the City. 16.65) Amount of the Fee Residential: Single family $2,857.80 per unit; Multi‐family Single and Multi‐Family: $24.52 per sq. ft. apartment $2,113.37 per unit (ADUs under 750 sq ft exempt)(rentals) Non‐residential: Commercial/industrial $840 per net new sq ft. Hotel/Motel $140 per net new 1,000 sq ft. Fund Balance July 1, 2022 931,093 1,057,616 FY 2023 Activity Revenues Fees Collected 20,398 12,949 (20,398) 12,948 0 22,402 (29,041) (6,639) Interest Earnings Unrealized Gain/(Loss) Investments Total Revenues Expenditures 0 Total Expenditures 0 0 Ending Balance June 30, 2023 944,041 1,050,978 Reserves Reserve for Reappropriations Total Reserves 0 0 (600,000) (600,000) Net Funds Available 944,041 450,978 Item 3 Attachment A - FY 2023 Development Impact Fee Annual Report Use of Fee Summary        Item 3: Staff Report Pg. 9  Packet Pg. 22 of 263  City of Palo Alto Development Impact Fee Report for Period Ending June 30, 2023 Charleston‐Arastradero Corridor Pedestrian and Bicyclist Safety Impact Fee Citywide Transportation Fee Description of the Type of Fee Transportation impact fees imposed on new development in parts of the City to fund congestion reduction projects. 16.59) Fees collected from new development and redevelopment the Charleston‐Arastradero Corridor to provide for and bicyclist safety improvements. (PAMC 16.60) Amount of the Fee Residential: $1,599 per residential unit $9,266 each; per net new PM peak hour trip Commercial: $0.46 per sq ft (ADUs exempt) Fund Balance July 1, 2022 34,904 1,999,269 FY 2023 Activity Revenues Interest Earnings Unrealized Gain/(Loss) Investments Total Revenues 474 794 1,268 37,798 (19,106) 18,692 Expenditures Operating Transfer to Capital Projects Fund Total Expenditures (35,000) (35,000) (395,000) (395,000) Ending Balance June 30, 2023 1,172 1,622,961 Reserves 0 Total Reserves 0 0 Net Funds Available 1,172 1,622,961 Item 3 Attachment A - FY 2023 Development Impact Fee Annual Report Use of Fee Summary        Item 3: Staff Report Pg. 10  Packet Pg. 23 of 263  City of Palo Alto Development Impact Fee Report for Period Ending June 30, 2023 University Avenue Non‐Residential Development In‐Lieu FeePublic Safety Facility Development Fee Description of the Type of Fee of the Fee Fees imposed on residential and non‐residential development to fund police and fire facilities (including fire apparatus and vehicles) (PAMC 16.58) Fees collected from non‐residential development within the Avenue Parking Assessment District area in lieu of the required number of parking spaces. (PAMC $124,275.00 per spaceResidential: Single family $1,269 per unit; Multi‐family $1,015 per unit Nonresidential: Commercial $709 per 1,000 sq ft. or fraction Industrial $237 per 1,000 sq. ft. or fraction thereof; $946 per 1,000 sq ft or fraction thereof. Fund Balance July 1, 2022 87,770 6,019,034 FY 2023 Activity Revenues Fees Collected 9,194 1,965 (3,837) 7,323 10,066,275 9,738,312 Interest Earnings Unrealized Gain/(Loss) Investments Total Revenues Expenditures Operating Transfer to Capital Projects Fund Total Expenditures 0 0 (92,400) (92,400) Ending Balance June 30, 2023 95,093 15,664,946 Reserves 0 0 Total Reserves 0 0 Net Funds Available 95,093 15,664,946 Item 3 Attachment A - FY 2023 Development Impact Fee Annual Report Use of Fee Summary        Item 3: Staff Report Pg. 11  Packet Pg. 24 of 263  City of Palo Alto Development Impact Fee Report for Period Ending June 30, 2023 (INFORMATION ONLY) Residential Housing In‐Lieu Fee (INFORMATION ONLY) Parkland Dedication Fee Description of the Type of Fee This fee is not subject to AB1600 reporting requirements is included only for information purposes. Fees collected from ownership residential developments of three or more units(including mixed used with ownership in housing) in‐lieu of providing the required below‐market rate unit(s) to low and moderate income households. (PAMC 16.65) This fee is not subject to AB1600 reporting requirements is included only for information purposes. Fees on parkland dedication imposed on new residential and non‐ residential development. Govt Code Sec. 66477 (Quimby Act) Amount of the Fee Single‐family $91.92 per sq. ft. single‐family detached; $61.28 sq. ft. single‐family attached. Multi‐family $61.29 per sq. condos. Single Family: $75,076.89 per unit; Multi‐Family: $51,747.91 unit. This applies only to residential projects that require subdivision or parcel map. Land dedication is required for resulting in more than 50 parcels. Parkland Fee ‐Land: Single Family: 531 sq. ft. per unit; Multi‐Family: 366 sq. ft. per unit. When parkland dedication park impact fees do not apply. Fund Balance July 1, 2022 29,466,762 3,779,395 FY 2023 Activity Revenues Fees Collected 49,043 277,887 (118,885) 208,045 0 56,765 54,249 111,014 Interest Earnings Unrealized Gain/(Loss) Investments Total Revenues Expenditures Salaries and Benefits Insurance (36,872) Program & Project Consultants Operating Transfer to Capital Projects Fund Total Expenditures (316,136) (1,650,000) (1,650,000)(354,238) Ending Balance June 30, 2023 29,320,569 2,240,408 Reserves Encumbrances (5,746) (3,000,000) (23,758,078) (26,763,824) Reappropriations Notes Receivable (details below): Total Reserves 0 Net Funds Available 2,556,745 2,240,408 Residential Housing In‐Lieu Fund, Detail for Notes Receivable: $375,000 for 3053 Emerson; $3,504,850 for Tree House Apts.; $747,734 for Sheridan Apts.; $2,285,026 for 801 Alma; for Palo Alto Housing Project; $593,952 for 2811‐2825 Alma St.; $203,561 for Colorado Park Housing; for El Dorado Palace; $6,800,000 for Buena Vista Mobile Home Park; $8,249,601 for Wilton Ct. Item 3 Attachment A - FY 2023 Development Impact Fee Annual Report Use of Fee Summary        Item 3: Staff Report Pg. 12  Packet Pg. 25 of 263  City of Palo Alto Development Impact Fee Report for Period Ending June 30, 2023 (INFORMATION ONLY) Public Art In‐Lieu Fee Water and Wastewater Collection Capacity Fee Description of the Type of Fee This fee is not subject to AB1600 requirements and is in this report only for information purposes. Fees on new commercial developments (including mixed projects), including new construction, remodels, and reconstruction that (i) have a floor area of sq. ft. or more, and (ii) have a construction value of or more, exclusive of costs for architecture, design, and required studies; and all new residential of five or more units to fund public art for private (PAMC 16.61) The water and wastewater collection system capacity fees used to buy into existing water distribution and collection systems and to recover the cost of system improvements required to the new customers of increased loads of existing These are one‐time fees paid before the water or services are upgraded or installed. Utility fees received are placed in a special fund and used for water and sanitary sewer capital improvement Amount of the Fee 1% of first $120.25 million construction valuation and 0.9% of valuation for valuation in excess of $120.25 Water Capacity Fees: 5/8 in., 3/4 in E‐Meter. $3,750, 1 in. E‐ Meter $6,250, 1 1/2 in. E‐Meter $18,850, 2 in. E‐Meter $31,250, 4 in. Compound Meter by est. $125/FU (min. 5,000 FU) , 6 in. Compound Meter by est. $125/FU (min. 7,000 FU) Fire Service Capacity Fees: 2 in. $750, 4 in. $8,425, 6 in. 8 in. $30,950, 10in. $48,110 Sewer Capacity Charges: 4 in. connection with 5/8 in Water (WM) $5,250, 4 in connection. with 1‐in WM $10,500, or 6 in. connection with 1‐1/2 in WM $31,668, 6 in. with 2 in. WM $52,500, 6 in. and larger with 4 in. or larger WM by est. at $210/FU Fund Balance July 1, 2022 1,925,710 FY 2023 Activity Revenues Fees Collected Earnings 261,001 Unrealized Gain/(Loss) Investments Operating Transfer from General Fund Capacity Fees Collected ‐ Water Total Revenues (48,425) 131,275 131,275439,088 Expenditures Salaries and benefits Other Contract Services Liability Insurance Total Expenditures (255,040) (273,364) Ending Balance June 30, 2023 2,091,434 Reserves Other Commitments/Appropriations Total Reserves (40,000) (40,000) Net Funds Available 2,051,434 Item 3 Attachment A - FY 2023 Development Impact Fee Annual Report Use of Fee Summary        Item 3: Staff Report Pg. 13  Packet Pg. 26 of 263  City of Palo Alto FY 2023 Use of Fees Summary % of Total Fee Fund FY 2023 Expenditures (Actual)FY 2023 Interfund Transfers Project Cost Construction Start Date Stanford Research Park/El Camino Real Traffic Impact Fee None in FY 2023 in FY 2023 None in FY 2023 in FY 2023 in FY 2023 N/A N/A San Antonio/West Bayshore Traffic Impact Fee Housing Impact Fee 36% Expended $38,000 directly in the Housing Impact Fee related to staffing costs and costs to support housing work for Permanent Local Allocation (PLHA) N/A Entitlement Funding and Local Trust Fund (LHRF). General Government Facilities None in FY 2023 None in FY 2023 N/A N/A Community Facilities ‐ Parks Development Fee Boulware Park (PE‐17005)$343,580 in Capital Project Fund in Capital Project Fund in Capital Project Fund $1,930,000 to Capital Project Fund to Capital Project Fund to Capital Project Fund 36%Construction scheduled to summer 2024. 1 construction began fall 2021.Rinconada Park (PE‐08001) Park Restroom Installation (PG‐19000)36%FY 2024, with additional projects in FY 2026 and FY 2028 Community Facilities ‐ Community Centers Development Fee Facilities ‐ Library Development Fee Housing Impact Fee None in FY 2023 None in FY 2023 in FY 2023 N/A N/A None in FY 2023 Item 3 Attachment A - FY 2023 Development Impact Fee Annual Report Use of Fee Summary        Item 3: Staff Report Pg. 14  Packet Pg. 27 of 263  City of Palo Alto FY 2023 Use of Fees Summary % of Total Project Cost N/A Fee Fund FY 2023 Expenditures (Actual) None in FY 2023 FY 2023 Interfund Transfers None in FY 2023 Construction Start Date N/A Charleston‐Arastradero Corridor Pedestrian and Bicyclist Safety Charleston/Arastradero Corridor Project (PE‐13011)$35,000 in Capital Project Fund $35,000 to Capital Project Fund to Capital Projects Fund 1%Phases 1 and 2 began June 2018 Citywide Transportation Traffic Signal and Intelligent Transportation (PL‐05030 )$232,810 in Capital Project Fund 42%Project start was circa FY 2005. Fee used for ongoing upgrades to City's comprehensive traffic system, including traffic equipment and on‐call traffic services. Public Safety Facility Development Fee None in FY 2023 in FY 2023 None in FY 2023 N/A N/A University Avenue Parking In‐Lieu Fee New Downtown Parking Garage (PE‐15007)$92,000 to Capital Project Fund Project currently in planning and Construction start date is Residential Housing In‐Lieu Fee Fund Expended $38,000 directly in the Housing In‐Lieu Fee Fund, to staffing costs and internal to support housing grant work PLHA and LHRF and Below Market (BMR) administration. Parkland Dedication None in FY 2023 in FY 2023 in FY 2023 None in FY 2023 in FY 2023 in FY 2023 N/A N/A Public Art Fund Water and Wastewater Collection Item 3 Attachment A - FY 2023 Development Impact Fee Annual Report Use of Fee Summary        Item 3: Staff Report Pg. 15  Packet Pg. 28 of 263  *NOT YET APPROVED* Resolution No. _____ Attachment B Resolution of the Council of the City of Palo Alto Accepting the Development R E C I T A L S A. Government Code Sections 66000 et seq., commonly known as the Mitigation Fee Act, G. The City Council has read and considered the Development Impact Fee Report for the Period The Council of the City of Palo Alto RESOLVES as follows: Section 1.The City Council accepts the Development Impact Fee Report for the Period Ending June 30, 2023 as required by Government Code 66006. Section 2.Based on the Development Impact Fee Report for the Period Ending June 30, 2023, and the Schedule of Improvements and Expenditures attached as Exhibit 1 to this resolution, the 1 0003_20240125_ca29 Item 3 Attachment B - Resolution Accepting the Development Impact Fee Report for the Period Ending 06-30-2023 and Making Findings Re the Continuing Need for Development Impact Fees Collected but Not Expended        Item 3: Staff Report Pg. 16  Packet Pg. 29 of 263  *NOT YET APPROVED*Attachment B Stanford Research Park/El Camino Real Traffic Impact Fee A. The purpose of this fee is to fund traffic-related improvements at eight designated San Antonio/West Bayshore Area Traffic Impact Fee A. The purpose of this fee is to fund the cost of capital expenditures needed to provide Citywide Transportation Impact Fee A. The purpose of this impact fee is to fund the cost of citywide transportation 2 0003_20240125_ca29 Item 3 Attachment B - Resolution Accepting the Development Impact Fee Report for the Period Ending 06-30-2023 and Making Findings Re the Continuing Need for Development Impact Fees Collected but Not Expended        Item 3: Staff Report Pg. 17  Packet Pg. 30 of 263  *NOT YET APPROVED*Attachment B University Avenue Parking In-Lieu A. The purpose of this fee is to fund the cost of providing public parking facilities to serve In addition to the estimated expenditures stated in Exhibit 1, the City has also allocated $1.3 Commercial Housing Impact Fee Fund A. The purpose of this fee is to offset the demand that new jobs create for low and // 3 0003_20240125_ca29 Item 3 Attachment B - Resolution Accepting the Development Impact Fee Report for the Period Ending 06-30-2023 and Making Findings Re the Continuing Need for Development Impact Fees Collected but Not Expended        Item 3: Staff Report Pg. 18  Packet Pg. 31 of 263  *NOT YET APPROVED*Attachment B SECTION 3. The Council finds that adoption of this resolution is not a project as defined by the INTRODUCED AND PASSED: NOES: ABSENT: ABSTENTIONS: _______________________________________________________ APPROVED AS TO FORM:APPROVED: _______________________________________________________ _____________________________ 4 0003_20240125_ca29 Item 3 Attachment B - Resolution Accepting the Development Impact Fee Report for the Period Ending 06-30-2023 and Making Findings Re the Continuing Need for Development Impact Fees Collected but Not Expended        Item 3: Staff Report Pg. 19  Packet Pg. 32 of 263  Exhibit 1 Schedule of Improvments and Expenditures Amount and Approximate Dates of Funding to be Deposited FY 2023 and Prior FY 2024 FY 2025 FY 2026 FY 2027Improvement/Public Facility Funding Source FY 2028 Additional Funding Sources; Notes Traffic Signal and Intelligent Transporation Refer to City of Palo Alto FY 2024 Systems (PL-05053)San Antonio/W. Bayshore Impact Fee Fund $900,000 Adopted Capital Budget, pp. 330-331 San Antonio/Charleston intersection (PE-86070) Refer to City of Palo Alto FY 2024 Capital Budget, pp. 290-291San Antonio/W. Bayshore Impact Fee Fund Antonio/W. Bayshore Impact Fee Fund $400,000 Refer to City of Palo Alto FY 2024 Capital Budget, pp. 290-291San Antonio Overpass (PE-86070)900,000 Refer to City of Palo Alto FY 2024 Capital Budget, pp. 304-305Churchill Ave Enhanced Bikeway (PL-14000) Citywide Traffic Impact Fee Fund 1,000,000 Traffic Signal and Intelligent Transportation (PL-05030) Refer to City of Palo Alto FY 2024 395,000 Adopted Capital Budget, pp. 330-331 Refer to City of Palo Alto FY 2024 Citywide Traffic Impact Fee Fund $395,000 395,000 $395,000 $395,000 $ Adopted Capital Budget, pp. 158-159. December 2023, the City Council staff to resume work on the Parking Garage project in with the development of housing on City-owned lots. Project budget, funding and dates will be updated in FY 2025-2029 Capital Improvement Downtown Parking Garage (PE-15007) Alma Street Downtown Parking In-Lieu Fee Fund Housing Impact Fee Housing Impact Fee $1,300,000 $5,448,600 Program. Affordable housing units managed by Alta Housing housing units managed by Housing Management801 Alma Street Affordable housing units managed by Buena Vista Mobile Home Park Court Commercial Housing Impact Fee Housing Impact Fee $7,700,000 Santa Clara County Housing Authority housing units managed by Housing10,502,309 The Planning and Development Services Department will be releasing notice of funding availability (NOFA) February 2024 and remaining funding should be allocated in FY 2024; minimum balance will be maintained account for unrealized losses as funds are invested until the time disbursement. constructed in partnership Community Development Block Grant- additional eligible affordable housing units/affordable housing program expenditures Commercial Housing Impact Fee $2,000,000 Page Mill Road/Hanover Street Intersection Stanford Research Park/El Camino Real Traffic Improvements Impact Fee $2,200,000 with County of Santa ClaraProject to be constructed in partnership with County of Santa Clara tenative construction start in FYPage Mill Road/El Camino Real Intersection Stanford Research Park/El Camino Real Traffic Impact Fee $1,000,000 2026 Funding amounts and dates will be Traffic Signal and Intelligent Transportation Stanford Research Park/El Camino Real Traffic (PL-05030) Impact Fee updated in the FY 2025-2029 Capital $50,000 Improvement Program.$50,000 $50,000 $50,000 Item 3 Attachment B - Resolution Accepting the Development Impact Fee Report for the Period Ending 06-30-2023 and Making Findings Re the Continuing Need for Development Impact Fees Collected but Not Expended        Item 3: Staff Report Pg. 20  Packet Pg. 33 of 263  3 6 7 4 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Utilities Meeting Date: February 5, 2024 Staff Report: 2312-2339 TITLE Approval of Amendment Number 1 to Contract Number S21180652 With Eric Gouldsberry Art Design (EGAD), in the Amount of $170,000 for Graphic Design Services to Extend the Term for Additional Two Years; for a Total Not-to-Exceed Amount of $410,000 over the Five-year Term; CEQA Status – Not a Project RECOMMENDATION Staff recommends that Council: 1. Approve and authorize the City Manager or designee to execute Amendment No. 1 to contract S21180652 (Attachment B) with Eric Gouldsberry Art Design (EGAD) for the continued provision of on-call graphic design services, to extend the term for an additional two years in an amount not-to-exceed $170,000, for a revised total contract not-to-exceed amount of $410,000 over the five-year term of the agreement. There are no changes to compensation rates listed in Exhibit C-1 of the original contract (Attachment A). On January 21, 2021, Staff entered into a contract agreement with Eric Gouldsberry Art Design (EGAD) for graphic design services for the Utilities Department. This was a three-year contract term in the amount of $80,000 per year for a total not to exceed amount of $240,000. The contract expires January 22, 2024. Staff recommend amending the contract and extending the term for another two years in the amount of $85,000 per year, with a total not to exceed amount $170,000, to continue graphic design services for the Utilities Department. BACKGROUND The City of Palo Alto Utilities (CPAU) is responsible for communication and outreach to its more than 29,000 utility customers for critical Utilities management and operations. This includes: utility billing, capital improvement, infrastructure operations and maintenance, rates and financial information, and safety. Federal and State requirements and local City Council policies dictate the need for energy and water efficiency savings programs, as well as greenhouse gas emissions reductions through sustainability and climate action, electrification for homes and Item 4 Item 4 Staff Report        Item 4: Staff Report Pg. 1  Packet Pg. 34 of 263  3 6 7 4 buildings, electric transportation (vehicles including cars, bikes, etc.), and educational programs such as workshops and community outreach events. •Customer service, billing, and meter reading •Utilities safety, infrastructure capital improvement, operations, and maintenance •Resiliency •Utilities rates •Energy (gas and electric) conservation and efficiency •Water supply, quality, conservation, and efficiency •Renewable energy Item 4 Item 4 Staff Report        Item 4: Staff Report Pg. 2  Packet Pg. 35 of 263  3 6 7 4 •Electrification and sustainability CPAU anticipates launching new programs in the next several years to achieve goals for sustainability and climate action. Several programs will target beneficial electrification for small-to-medium businesses, and commercial, institutional, and industrial customers. CPAU is continually evaluating ways to scale up or enhance existing programs to drive greater participation, allowing us to meet mandates or goals for energy and water efficiency and GHG reductions. Regulatory requirements are expanding to increase public awareness about utilities safety, infrastructure projects, and resource supply management. Staff are finding it necessary to provide more outreach and notifications to customers on these issues. With the vast number of programs and services currently offered by CPAU, as well as augmented programs and public awareness requirements, professional graphic design services are critical to enable CPAU to meet these communication needs. Bid Process The City issued a Request for Proposal through PlanetBids on October 15, 2020 to identify providers with experience working with municipal utilities to provide graphic design services. Proposals were due on November 2, 2020. Table 1 summarizes the solicitation process: Table 1: Summary of Solicitation Process Proposal Description Utilities Graphic Design Services (RFP 180652) Length of Service 3 years Number of notices sent to vendors 283 Number of proposals downloaded by vendors 18 Bids received 12 Based on the evaluation, staff selected EGAD because of their municipal experience, skillset, and lowest cost proposal. The award of the contract does not guarantee EGAD will be assigned any dollar amount, quantity, or type of graphic design service projects. FISCAL/RESOURCE IMPACT Funding of $85,000 is available in the fiscal year 2024 Utilities Department Operating Budget. Funding for subsequent years of the amendment is subject to Council’s approval of each fiscal year’s budget appropriation. ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by CEQA because approval of this contract amendment is an organizational or administrative activity of government that will not result in direct or indirect changes in the environment, under CEQA Guidelines section 15378(b)(5). Item 4 Item 4 Staff Report        Item 4: Staff Report Pg. 3  Packet Pg. 36 of 263  3 6 7 4 ATTACHMENTS APPROVED BY: Item 4 Item 4 Staff Report        Item 4: Staff Report Pg. 4  Packet Pg. 37 of 263  Professional Services Rev. April 23, 2020 1 CITY OF PALO ALTO CONTRACT NO. S21180652 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND ERIC GOULDSBERRY ART DIRECTION FOR PROFESSIONAL SERVICES This Agreement is entered into on this 21st day of January, 2021, (“Agreement”) by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and ERIC GOULDSBERRY ART DIRECTION, a sole proprietor, located at 4101 Ashbrook Circle, San Jose, CA 95124 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY desires to engage a consultant to provide on-call graphic design services (“Services”). B. CONSULTANT has represented that it has 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”, attached to and made a part of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described at 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.) Services will be authorized by CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager. Each Task Order shall be in substantially the same form as Exhibit A-1. Each Task Order shall designate a CITY Project Manager and shall contain a specific scope of work, a specific schedule of performance and a specific compensation amount. The total price of all Task Orders issued under this Agreement shall not exceed the amount of Compensation set forth in Section 4 of this Agreement. CONSULTANT shall only be compensated for work performed under an authorized Task Order and CITY may elect, but is not required, to authorize work up to the maximum compensation amount set forth in Section 4. DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 5  Packet Pg. 38 of 263  Professional Services Rev. April 23, 2020 2 SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through January 22, 2024 unless terminated earlier pursuant to Section 19 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”, attached to and made a part of this Agreement. 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 compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed Eighty Thousand Dollars ($80,000.00) per contract year, for an overall not to exceed amount of Two Hundred Forty Thousand Dollars ($240,000.00) over the three-year term of the Agreement. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean 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”. 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 an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT’s billing 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 payment requests shall be subject to verification by CITY. CONSULTANT shall send all invoices to the City’s project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it possesses 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 subconsultants, if permitted, 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 DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 6  Packet Pg. 39 of 263  Professional Services Rev. April 23, 2020 3 perform the Services. All of the 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. 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. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contracted with CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of CITY. 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 consent of the city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. CONSULTANT shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of the city manager or designee. CONSULTANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 7  Packet Pg. 40 of 263  Professional Services Rev. April 23, 2020 4 subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of the city manager or his designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Eric Gouldsberry as the project manager to have supervisory responsibility for the performance, progress, and execution of the Services and to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director 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 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 Project or a threat to the safety of persons or property. CITY’s project manager is Catherine Elvert, Utilities Department, 250 Hamilton Avenue, Palo Alto, CA 94301, Telephone: (650) 329-2417. The 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. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement 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 pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor of the CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials 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 work. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier termination of this Agreement. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all 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 attorneys fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 8  Packet Pg. 41 of 263  Professional Services Rev. April 23, 2020 5 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 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. The waiver by either party of any breach or violation of any covenant, term, condition or provision of this Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. 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". 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 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 concurrent- ly 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. DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 9  Packet Pg. 42 of 263  Professional Services Rev. April 23, 2020 6 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. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services by giving thirty (30) days prior written notice thereof to CITY, but only in the event of a substantial failure of performance by CITY. 19.3. Upon such suspension or termination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed, prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension or termination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving 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 which are of direct and immediate benefit to CITY as such determination may be 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, 19.4, 20, and 25. 19.5. 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. 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 director at the address of CONSULTANT recited above DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 10  Packet Pg. 43 of 263  Professional Services Rev. April 23, 2020 7 SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting 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 subconsultants, contractors or persons 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. 21.3. If the Project Manager determines that CONSULTANT is a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, CONSULTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, 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. 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, incorporated by reference and may be 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 CCONSULTANT 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 Division’s office. DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 11  Packet Pg. 44 of 263  Professional Services Rev. April 23, 2020 8 (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 it may be 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 25.1. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. 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. CONSULTANT is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7 if the contract is not a public works contract, if the contract does not include a public works construction project of more than $25,000, or the contract does not include a public works alteration, demolition, repair, or maintenance (collectively, ‘improvement’) project of more than $15,000. SECTION 27. MISCELLANEOUS PROVISIONS. 27.1. This Agreement will be governed by the laws of the State of California. 27.2. 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. 27.3. 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 DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 12  Packet Pg. 45 of 263  Professional Services Rev. April 23, 2020 9 parties. 27.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and contracts, either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 27.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 27.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 27.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to be a part of this Agreement. 27.8 In the event of a conflict between the terms of this Agreement and the exhibits hereto or CONSULTANT’s proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONSULTANT’s proposal, the exhibits shall control. 27.9 If, pursuant to this contract with CONSULTANT, CITY shares with CONSULTANT personal information as defined in California Civil Code section 1798.81.5(d) about a California resident (“Personal Information”), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes without City’s express written consent. 27.10 All unchecked boxes do not apply to this Agreement. 27.11 The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 27.12 This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement. DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 13  Packet Pg. 46 of 263  Professional Services Rev. April 23, 2020 10 CONTRACT No. S21180652 SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO ____________________________ Purchasing Manager (Required on contracts over $50,000) APPROVED AS TO FORM: __________________________ City Attorney or designee ERIC GOULDSBERRY ART DIRECTION By: Name: Title: Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER (for on-call contracts only) EXHIBIT “B”: SCHEDULE OF PERFORMANCE EXHIBIT “C”: COMPENSATION EXHIBIT “C-1”: SCHEDULE OF RATES EXHIBIT “D”: INSURANCE REQUIREMENTS EXHIBIT “E”: OBLIGATIONS REGARDING NON-DISCLOSURE OF CONFIDENTIAL INFORMATION DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Eric Gouldsberry Art Director-Owner Aylin Bilir Christine Paras Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 14  Packet Pg. 47 of 263  Professional Services Rev. April 23, 2020 11 EXHIBIT “A” SCOPE OF SERVICES CONSULTANT shall provide services as requested by the CITY in a Task Order, which may include but not be limited to the following services: Concept, Design and Art Direction; Production; Client and Vendor Meetings; Creative Writing; Video Concepting, Writing and Production/Editing; Photo/Video Direction; Print Direction; Translation Services. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information, as defined by the Non-Disclosure Agreement attached as Exhibit E to this Agreement. CONSULTANT will hold any and all CITY Confidential Information in strict confidence and use it only for the performance of its obligations to CITY under this Agreement and for no other purpose, in accordance with the terms of Exhibit E. Task 1: Graphic Design CONSULTANT shall develop distinctive creative concepts tailored to CITY target audience, while remaining consistent with CITY branding. Examples of CITY audiences include: residents, businesses and industry, schools and community groups, internal staff, elected officials and/or other government agencies with which the City collaborates. CONSULTANT shall collaborate with CITY project manager at the start of each calendar or fiscal year, whichever is most appropriate for scheduling and developing strategic communication campaigns, to develop annual outreach materials, incorporating traditional and new media. Specifically, as directed by CITY, CONSULTANT shall create or assist with creating traditional outreach materials and provide graphic design services that may include: a) Utility bill inserts, print ads, factsheets, newspaper articles, displays, brochures b) High-resolution photographs with a regional context (including original photography if needed) c) Images, charts, infographics and graphs clearly explaining complicated information or a compelling call to action d) Creative elements for the website including photographs, graphics, charts, videos, games and other elements. e) Web content management including potential HTML editing and or webpage creation and design. f) Videos and animated images for a variety of uses including but not limited to online and classroom educational videos, television commercials, and other dynamic media advertisements g) Movie making, including story and script development, animation and graphics h) Promotional items for residents, schools, special events, and businesses i) Customized illustrations and artwork for a variety of formats DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 15  Packet Pg. 48 of 263  Professional Services Rev. April 23, 2020 12 j) Coordinate with outside printers and in-house City of Palo Alto copying services • Deliverables: in addition to the specific deliverables requested in a duly authorized Task Order, Contractor shall transfer high resolution design file archives to CITY on a monthly basis. Any artwork designed for this contract shall become the property of the City of Palo Alto, as set forth in Section 14 of the Agreement. DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 16  Packet Pg. 49 of 263  Professional Services Rev. April 23, 2020 13 EXHIBIT “A-1” PROFESSIONAL SERVICES TASK ORDER Consultant hereby agrees to perform the work 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 the Agreement by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. ISSUE DATE Purchase Requisition No. 1A. MASTER AGREEMENT NUMBER 1B. TASK ORDER NO. 2. CONSULTANT 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT $__________________________________ 5. BUDGET CODE: _______________ COST CENTER_________________ COST ELEMENT______________ WBS/CIP___ _____PHASE___ 6. CITY PROJECTMANAGER’S NAME/DEPARTMENT_________________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES MUST INCLUDE:  WORK TO BE PERFORMED  SCHEDULE OF WORK  BASIS FOR PAYMENT & FEE SCHEDULE  DELIVERABLES  REIMBURSABLES (with “not to exceed” cost) 8. ATTACHMENTS: A: Scope of Services B: __________________________________ ----------------------------------------------------------------------------------------------------------------------------------- I hereby authorize the performance of I hereby acknowledge receipt and acceptance the work described above in this Task Order. of 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 ___________________________________ DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 17  Packet Pg. 50 of 263  Professional Services Rev. April 23, 2020 14 EXHIBIT “B” SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each Project on a timeline as agreed between the Parties and as indicated by the completion date shown on a duly authorized Task Order. The time to complete each Project 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. For each Project, CITY shall submit to CONSULTANT a Task Order scope of work outlining the goal and scope of the Project. CONSULTANT shall provide CITY with a written estimate for timing and cost to complete each Project. CONSULTANT shall not begin work on any Project until CITY approves the estimate and issues a Task Order in substantially the same form as Exhibit A-1 to this Agreement, which CONSULTANT accepts and authorizes. DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 18  Packet Pg. 51 of 263  Professional Services Rev. April 23, 2020 15 EXHIBIT “C” COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement based on the hourly rate schedule attached as Exhibit C-1, but not to exceed the total Task Order price shown on any Project Task Order without a duly authorized amendment. The compensation to be paid to CONSULTANT under this Agreement for all services, additional services, and reimbursable expenses shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services and Additional Services, including reimbursable expenses, 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. The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. 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, including reimbursable expenses, for such services based on the rates set forth in Exhibit C-1. 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. DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 19  Packet Pg. 52 of 263  Professional Services Rev. April 23, 2020 16 EXHIBIT “C-1” SCHEDULE OF RATES Hourly Rates: Design/Concept/Art Direction $100/hour Production (including revisions) $100/hour Photo/Print Direction $100/hour Client/Vendor Meetings $100/hour General/Administrative $80/hour Fixed Project Rates based on basic descriptions: 48-hour rush (Same rates) $100/hour Single-sided advertisement (e.g., bill insert, flyer, poster, magazine ad, etc.) $750 Double-sided advertisement $1,000 Trifold brochure $1,000 Programs or rebate brochure/catalogue (based on 16-page sample) $1,500 Social Media ads $500 Print and electronic ad design bundle $1,250 Translation services (assumes 350 words per page) $98/page DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 20  Packet Pg. 53 of 263  Professional Services Rev. April 23, 2020 17 EXHIBIT “D” INSURANCE REQUIREMENTS CONTRACTORS 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. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS AGGREGATE YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT 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 CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569. 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. 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 DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 21  Packet Pg. 54 of 263  Professional Services Rev. April 23, 2020 18 THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. 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. VENDORS ARE REQUIRED TO FILE THEIR EVIDENCE OF INSURANCE AND ANY OTHER RELATED NOTICES WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 22  Packet Pg. 55 of 263  Professional Services Rev. April 23, 2020 19 EXHIBIT “E” OBLIGATIONS REGARDING NON-DISCLOSURE OF CONFIDENTIAL INFORMATION 1. PURPOSE 1.1 In its performance of Services under this Agreement, CONSULTANT and its directors, officers, partners, managers, members, employees, advisors, agents, sub-contractors and other representatives of CONSULTANT and their subsidiaries and affiliates, including, without limitation, attorneys, accountants, consultants, and financial advisors (collectively, the “Representatives”) may acquire and otherwise gain access to Confidential Information, as defined in Section 1 of this Exhibit “E”, which is exempt from public disclosure under the California Public Records Act, Cal. Gov. Code section 6250 et seq. 1.2 In accordance with the terms and conditions of this Agreement, CONSULTANT agrees to take reasonable precautions to ensure that Confidential Information of CITY, as defined in this Exhibit, is safeguarded against disclosure to unauthorized employees or third parties. 1.3 CITY would not share or disclose any Confidential Information to CONSULTANT but for the legal protections against unauthorized disclosures intended to be afforded by California law and this Agreement, and is relying on this Agreement in disclosing such Confidential Information to CONSULTANT. 2. CONFIDENTIAL INFORMATION, DEFINED 2.1 “Confidential Information”, defined: “Confidential Information” means any and all information which is of a non-public, proprietary or confidential nature, in any form or medium, written or oral, (whether prepared by the CITY, its employees, or agents, and irrespective of the form or means of communication and whether it is labeled or otherwise identified as confidential) that is furnished to the Receiving Party by the CITY, and any other proprietary business and utility data or information consisting of research and development, intellectual property, technical information, computer programs, software, maps, methodologies, innovations, software tools, know-how, knowledge, designs, drawings, specifications, concepts, data, reports, processes, techniques, documentation, pricing, marketing plans and customer lists. Confidential Information shall also include notes, copies, printouts, analysis, discussion or summaries of or regarding Confidential Information prepared by the CONSULTANT or its directors, officers, partners, managers, members, employees, advisors, agents, sub- contractors and other representatives of the CONSULTANT and their subsidiaries and affiliates, including without limitation attorneys, accountants, consultants, and financial advisors (collectively, “Representatives”). 2.2 Exceptions. “Confidential Information” shall exclude (and the CONSULTANT shall not be under any obligation to maintain in confidence) any information (or DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 23  Packet Pg. 56 of 263  Professional Services Rev. April 23, 2020 20 any portion thereof) disclosed to CONSULTANT by CITY to the extent that such information: (a) is in the public domain at the time of disclosure; or (b) at the time of or following disclosure, becomes generally known or available through no act or omission on the part of CITY; or (c) is known, or becomes known, to CONSULTANT from a source other than CITY or its Representatives (as defined herein), provided that disclosure by such source is not in breach of a confidentiality agreement CITY; or (d) is independently developed by CONSULTANT without violating any of its obligations under this Agreement or any other agreement between the Parties; or (e) is legally required to be disclosed by judicial or other governmental action; provided, however, that prompt notice of such judicial or other governmental action shall have been first given to CITY, which shall be afforded the opportunity to exhaust all reasonable legal remedies to maintain the Confidential Information in confidence; or (f) is permitted to be disclosed by a formal written agreement executed by and between the Parties. Specific information shall not fall within the exceptions of Sections (a) through (f) above merely because it is embraced by more general information falling within such exceptions. 3. CALIFORNIA PUBLIC RECORDS ACT 3.1 CONSULTANT acknowledges that CITY is a public agency subject to the requirements of the California Constitution, Article 1, Section 3 and California Public Records Act Cal. Gov. Code section 6250 et seq. CONSULTANT acknowledges that CITY may submit to or otherwise provide access to CONSULTANT Confidential Information that CITY or any utility customer of CITY considers to be protected from disclosure pursuant to exemptions granted by applicable California law. 3.2 Whether or not there is a request or demand of any third party not a Party to this Agreement (the “Requestor”) for the production, inspection and/or copying of information designated by CITY as Confidential Information, CONSULTANT shall be solely responsible for taking whatever legal steps CITY deems necessary to protect information deemed by it to be Confidential Information and to prevent release of information to the Requestor (including the release of such information by CONSULTANT). DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 24  Packet Pg. 57 of 263  Professional Services Rev. April 23, 2020 21 3.3 Under no circumstances will CONSULTANT be permitted to comply with the Requestor’s demand for disclosure of such Confidential Information that CITY deems confidential and not intended for disclosure to the general public, or otherwise publicly disclose the Confidential Information to any person not authorized by law to receive such information. 4. CONFIDENTIAL INFORMATION DESIGNATION 4.1 As practicable, the Confidential Information shall be marked with the words “Confidential” or “Confidential Material” or with words of similar import. CITY shall instruct CONSULTANT that information of a financial, personal, or proprietary nature being conveyed orally and intended by CITY to be covered by the terms of this Agreement, is deemed Confidential Information. To the extent possible, CITY shall endeavor to mark any electronic document intended to be covered by the terms of this Agreement with the words “Confidential” or similar words, or, if that is not possible or would be exceedingly difficult, CITY shall notify CONSULTANT (for example, by covering e-mail transmitting the electronic document) that the electronic document is Confidential Information. 4.2 CITY’s failure, for whatever reason, to mark any material at the time it is produced to CONSULTANT, or to notify it that oral or electronic material is Confidential Information at the time it is provided, shall not take the material out of the coverage of this Agreement for all time, and CONSULTANT shall treat the material as Confidential Information once CITY has notified it that the material is to be covered by this Agreement. 5. DUTY TO KEEP CONFIDENTIAL 5.1 CONSULTANT agrees to maintain as confidential, to the extent permitted or required by applicable law, all Confidential Information furnished or otherwise made available to the CONSULTANT, or its Representatives by CITY. CONSULTANT acknowledges that the Confidential Information is proprietary and a valuable asset of CITY and agrees that CONSULTANT shall take reasonable precautions to ensure that such Confidential Information is safeguarded against disclosure to unauthorized employees, Representatives or third parties. (a) CONSULTANT shall use the Confidential Information solely as permitted by the Contract and shall not sell Confidential Information or otherwise disclose such Confidential Information under any circumstances and without the prior written consent of CITY. CONSULTANT shall not disclose the Confidential Information, or portions thereof, to any of its Representatives, except to those who need to know such information for the purpose of advising CITY and who agree to the terms of this Agreement. DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 25  Packet Pg. 58 of 263  Professional Services Rev. April 23, 2020 22 (b) CONSULTANT agrees that any of the Representatives to whom the Confidential Information is disclosed will be informed of the confidential or proprietary nature of such information and of CONSULTANT’s obligations under this Agreement. CONSULTANT is responsible for any use of Confidential Information by any of its Representatives. (c) CONSULTANT shall ensure that: (i) any Representatives with whom CONSULTANT shares such Confidential Information or who acquire knowledge of such Confidential Information from or through CONSULTANT regard and treat such Confidential Information of CITY as strictly confidential and wholly owned by CITY, and (ii) CONSULTANT shall not (and CONSULTANT shall ensure that any Representatives with whom CONSULTANT shares such Confidential Information or who acquire knowledge of such Confidential Information from or through CONSULTANT do not) for any reason, in any fashion, either directly or indirectly, sell, lend, lease, distribute, license, give, transfer, assign, show, disclose, disseminate, or otherwise communicate any such Confidential Information to any third party, or misappropriate, reproduce, copy or use any such Confidential Information, in either case, for any purpose other than in accordance with this Agreement. (d) If CONSULTANT or any of its Representatives are requested or required to disclose any Confidential Information by law, regulation, the applicable rules of any national securities exchange or other market or reporting system, oral questions, interrogatories, requests for information or other documents in legal proceedings, subpoena, civil investigative demand or any other similar process, CONSULTANT shall provide CITY with prompt written notice of any such request or requirement so that CITY has an opportunity to seek a protective order via writ of mandate or other appropriate remedy, or waive compliance with the provisions of this Agreement. (e) If CITY waives compliance with the provisions of this Agreement with respect to a specific request or requirement, CONSULTANT and its Representatives shall disclose only that portion of the Confidential Information that is expressly covered by such waiver and which is necessary to disclose in order to comply with such request or requirement. CONSULTANT and its Representatives shall cooperate in a reasonable manner with CITY in attempting to preserve the confidentiality of the Confidential Information. DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 26  Packet Pg. 59 of 263  Professional Services Rev. April 23, 2020 23 (f) If (in the absence of a waiver by CITY) CONSULTANT has not secured a protective order or other appropriate remedy despite attempting to do so, and CONSULTANT or one of its Representatives is nonetheless then legally compelled to disclose any Confidential Information, CONSULTANT or such Representative may, without liability hereunder, disclose only that portion of the Confidential Information that is necessary to be disclosed. In the event that disclosure is made in accordance with this subsection, CONSULTANT shall exercise, and cause its Representatives to exercise, reasonable efforts to preserve the confidentiality of the Confidential Information, including obtaining reliable assurance at the sole expense of CONSULTANT that confidential treatment shall be accorded any Confidential Information so furnished. 6. NO LIABILITY, RELEASE, OR OBLIGATION Except as set forth in any formal written agreement executed by and between the parties, neither CONSULTANT nor any of its Representatives shall be entitled to rely on any statement, promise, agreement or understanding, whether written or oral, or any custom, usage of trade, course of dealing or conduct. In addition, each Party understands and acknowledges that neither CITY nor any of its representatives, employees or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of any Confidential Information, and that neither CITY nor any of its representatives, employees or agents shall have any liability whatsoever to CONSULTANT or to any of its Representatives relating to or resulting from the Confidential Information or any errors therein or omissions therefrom. 7. REMEDIES In recognition that an irreparable injury may result to CITY, if any provision of this Exhibit E is violated, CONSULTANT agrees that upon any breach or threatened breach of any provision of this Exhibit E by CONSULTANT or any of its Representatives, that CITY shall be entitled to seek an injunction or specific performance prohibiting such conduct or any other relief as may be permitted by law. 8. RETURN OF CONFIDENTIAL INFORMATION 8.1 CONSULTANT shall have access to the Confidential Information provided by CITY only during the term of this Agreement, and shall return all Confidential Information provided under this Agreement upon its termination, or at any time upon request of CITY, as described in Section 8.2 of this Exhibit E. 8.2 CITY may at any time request that CONSULTANT promptly return to CITY or destroy any or all documents or other materials containing Confidential Information of CITY, and CONSULTANT shall immediately comply with any such request. Notwithstanding the return or destruction of the Confidential Information as contemplated by this section 8 of this Exhibit E, the CONSULTANT and its Representatives will continue to be bound by the terms of this Agreement with respect thereto, including all obligations of confidentiality. DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 27  Packet Pg. 60 of 263  Professional Services Rev. April 23, 2020 24 9. SURVIVAL CONSULTANT’s obligations of confidentiality and non-circumvention under this Exhibit E shall survive the termination of this Agreement. 10. WAIVER; AMENDMENT None of the terms or conditions of this Exhibit E may be amended or waived except in writing signed by the parties. The parties agree that no waiver, amendment, or modification of this Exhibit E shall be established by conduct, custom, or course of dealing. The failure by any party at any time or times to require performance of any provision hereof will in no manner affect its right at a later time to enforce the same. 11. OWNERSHIP RIGHTS NOT CREATED The transfer of Confidential Information hereunder shall not be construed as granting a license of any kind or any right of ownership in the Confidential Information to CONSULTANT. 12. NO OBLIGATION TO DISCLOSE Nothing in this Section shall obligate CITY to disclose specific Confidential Information to CONSULTANT. Such disclosures shall be at the CITY’s sole discretion. DocuSign Envelope ID: 9E8B08A6-3BCD-4C74-9909-2024BA1F3F14 Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 28  Packet Pg. 61 of 263  Certificate Of Completion Envelope Id: 9E8B08A63BCD4C7499092024BA1F3F14 Status: Completed Subject: Please DocuSign: S21180652 Eric Gouldsberry Art Direction - Legal Reviewed.pdf Source Envelope: Document Pages: 24 Signatures: 3 Envelope Originator: Certificate Pages: 2 Initials: 0 Terry Loo AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) Comments: yes 250 Hamilton Ave Palo Alto , CA 94301 Terry.Loo@CityofPaloAlto.org IP Address: 199.33.32.254 Record Tracking Status: Original 1/21/2021 3:18:42 PM Holder: Terry Loo Terry.Loo@CityofPaloAlto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Eric Gouldsberry egad@gouldsberry.com Art Director-Owner Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 73.189.253.56 Sent: 1/21/2021 3:21:28 PM Viewed: 1/21/2021 3:27:47 PM Signed: 1/21/2021 3:29:21 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Aylin Bilir aylin.bilir@cityofpaloalto.org Deputy City Attorney Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 67.180.217.241 Sent: 1/21/2021 3:29:25 PM Viewed: 1/21/2021 8:35:07 PM Signed: 1/21/2021 8:40:03 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Christine Paras Christine.Paras@CityofPaloAlto.org Asst. Director Administrative Services City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Uploaded Signature Image Using IP Address: 199.33.32.254 Sent: 1/21/2021 8:40:06 PM Viewed: 1/25/2021 9:01:05 AM Signed: 1/25/2021 9:59:02 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 29  Packet Pg. 62 of 263  Carbon Copy Events Status Timestamp Nelly Baumb Nelly.Baumb@CityofPaloAlto.org Deputy City Clerk City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 1/25/2021 9:59:06 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Tabatha Boatwright tabatha.boatwright@cityofpaloalto.org Administrative Associate III City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 1/25/2021 9:59:07 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Catherine Elvert Catherine.Elvert@CityofPaloAlto.org Utilities Communications Manager Security Level: Email, Account Authentication (None) Sent: 1/25/2021 9:59:09 AM Viewed: 1/25/2021 12:50:31 PM 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 1/21/2021 3:21:28 PM Certified Delivered Security Checked 1/25/2021 9:01:05 AM Signing Complete Security Checked 1/25/2021 9:59:02 AM Completed Security Checked 1/25/2021 9:59:09 AM Payment Events Status Timestamps Item 4 Attachment A - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652        Item 4: Staff Report Pg. 30  Packet Pg. 63 of 263  Vers.: Aug. 5, 2019 Page 1 of 3 AMENDMENT NO. 1 TO CONTRACT NO. S21180652 BETWEEN THE CITY OF PALO ALTO AND ERIC GOULDSBERRY ART DIRECTION This Amendment No. 1 (this “Amendment”) to Contract No. S21180652 (the “Contract” as defined below) is entered into as of January 22, 2024, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and ERIC GOULDSBERRY ART DIRECTION, a sole proprietor, located at 4101 Ashbrook Circle, San Jose, CA 95124 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of on-call graphic design services, as detailed therein. B. The Parties now wish to amend the Contract in order to increase compensation by One Hundred Seventy Thousand Dollars ($170,000) from Two Hundred Forty Thousand Dollars ($240,000) to a new total not to exceed amount of Four Hundred Ten Thousand Dollars ($410,000) and extend the contract term by two (2) years, through January 21, 2026. 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. S21180652 between CONSULTANT and CITY, dated January 21, 2021. 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: “The term of this Agreement shall be from the date of its full execution through January 21, 2026 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.” SECTION 3. 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 described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed Eighty Thousand DocuSign Envelope ID: 4616F4FB-0B5A-4FD0-83D1-E05152523FF2 Item 4 Attachment B - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652, Amendment No. 1        Item 4: Staff Report Pg. 31  Packet Pg. 64 of 263  Vers.: Aug. 5, 2019 Page 2 of 3 Dollars ($80,000) per year for the first three years of the contract, and shall not exceed Eighty-Five Thousand Dollars ($85,000) per contract year for years four and five, for an overall not to exceed amount of Four Hundred Ten Thousand Dollars ($410,000) over the five-year term of the Agreement. CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean 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”.” 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.) DocuSign Envelope ID: 4616F4FB-0B5A-4FD0-83D1-E05152523FF2 Item 4 Attachment B - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652, Amendment No. 1        Item 4: Staff Report Pg. 32  Packet Pg. 65 of 263  Vers.: Aug. 5, 2019 Page 3 of 3 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 ERIC GOULDSBERRY ART DIRECTION By:______________________________ Name:___________________________ Title:____________________________ DocuSign Envelope ID: 4616F4FB-0B5A-4FD0-83D1-E05152523FF2 Art Director/Owner Eric Gouldsberry Item 4 Attachment B - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652, Amendment No. 1        Item 4: Staff Report Pg. 33  Packet Pg. 66 of 263  Certificate Of Completion Envelope Id: 4616F4FB0B5A4FD083D1E05152523FF2 Status: Completed Subject: Complete with DocuSign: S21180652 amendment1 final.pdf Source Envelope: Document Pages: 3 Signatures: 1 Envelope Originator: Certificate Pages: 2 Initials: 0 Annmarie Romero AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 annmarie.romero@cityofpaloalto.org IP Address: 199.33.32.254 Record Tracking Status: Original 12/27/2023 8:27:27 AM Holder: Annmarie Romero annmarie.romero@cityofpaloalto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Eric Gouldsberry egad@gouldsberry.com Art Director/Owner Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 73.189.253.56 Sent: 12/27/2023 8:30:56 AM Viewed: 12/27/2023 10:51:53 AM Signed: 12/27/2023 10:53:02 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Catherine Elvert Catherine.Elvert@CityofPaloAlto.org Utilities Communications Manager Security Level: Email, Account Authentication (None) Sent: 12/27/2023 10:53:03 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Tabatha Boatwright Tabatha.Boatwright@CityofPaloAlto.org Utilities Management Analyst City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 12/27/2023 10:53:03 AM Viewed: 12/27/2023 11:05:05 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Witness Events Signature Timestamp Item 4 Attachment B - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652, Amendment No. 1        Item 4: Staff Report Pg. 34  Packet Pg. 67 of 263  Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 12/27/2023 8:30:56 AM Certified Delivered Security Checked 12/27/2023 10:51:53 AM Signing Complete Security Checked 12/27/2023 10:53:02 AM Completed Security Checked 12/27/2023 10:53:03 AM Payment Events Status Timestamps Item 4 Attachment B - Contract with Eric Goldsberry Art Design (EGAD) Contract #S21180652, Amendment No. 1        Item 4: Staff Report Pg. 35  Packet Pg. 68 of 263  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Utilities Meeting Date: February 5, 2024 Staff Report: 2311-2281 TITLE Approval of Amendment No. 2 to Contract S23184693 with Infosend, Inc. for Printing Services for the Utilities Department Programs and Projects to add $300,000 for a New Total Not to Exceed Amount of $555,000, and to Amend the Schedule of Rates. CEQA status: not a project. RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or their designee to execute Amendment Number 2 to contract S23184693 with Infosend, Inc. for printing services for the Utilities Department Programs and Projects to add $300,000 for a total not to exceed amount of $555,000 through January 31, 2026, and to amend the schedule of rates to include more types of printing services without increasing existing per-unit costs. BACKGROUND On February 1, 2023, the City awarded a contract to Infosend, Inc. to provide print services for the Utilities Department communication and outreach requirements. Printed materials are needed for communication on regulatory actions, rates, safety, infrastructure projects, customer programs, and customer service. Print services include, but are not limited to, monthly utility bill inserts, full page brochures, triple and bifold brochures, door hangers, envelopes, letterhead, flyers, posterboards, and more. Contracting with an outside print vendor is necessary because currently, the City’s Print Shop and mail room do not have the resources to perform this work in-house. Many of the Department’s print needs are high volume specialty items that require unique formatting, layout, folding, and mailing. The City’s Print Shop is unable to meet these needs at this time, however Utilities will work with the Print Shop in the coming year to determine whether more print materials can be shifted to in-house printing. Based on staff’s original estimates, Infosend, Inc. was awarded a contract of $255,000 for a total amount not to exceed $85,000 per year, for a three-year term. The original estimated contract Item 5 Item 5 Staff Report        Item 5: Staff Report Pg. 1  Packet Pg. 69 of 263  dollar amount with Infosend, Inc. is not sufficient to cover the costs for these print services and therefore the annual not to exceed amount is recommended to be increased. DISCUSSION Item 5 Item 5 Staff Report        Item 5: Staff Report Pg. 2  Packet Pg. 70 of 263  1) Monthly utility bill inserts: 600,000 quantity 2) Direct mail postcards: 160,000 quantity 3) Brochures: 100,000 quantity 4) Rate changes notifications: 75,000 quantity 5) Miscellaneous projects: 30,000 quantity Bid Process The City issued a Request for Proposal through PlanetBids on August 16, 2022 to identify providers with experience working with municipal utilities to provide printing services. Proposals were due on September 9, 2022. Table 1 summarizes the solicitation process: Based on the evaluation, staff selected Infosend because of their municipal experience and lowest cost proposal. The award of the contract does not guarantee Infosend will be assigned any dollar amount, quantity, or type of printing materials. As a result of Council’s approval to maintain in-house print and mail services (Agenda Item 5; Staff Report 2310-2165)1, Utilities will work with the Print Shop to provision services in-house. The Print Shop is in the process of adding resources following Council’s approval in late 2023, which will increase capacity. FISCAL/RESOURCE IMPACT Funding for FY 2024 is available in the FY 2024 Utilities Operating Budget. Funding for subsequent years is subject to City Council approval of the annual appropriation of funds through the annual 1 Agenda Item 5, Staff Report 2310-2165 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13056 P U S L 3 N 2 N 2 B 7 T Item 5 Item 5 Staff Report        Item 5: Staff Report Pg. 3  Packet Pg. 71 of 263  budget process. Table 2 summarizes the breakdown of the amendment amount for the term of the contract. ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Y O A T 1 8$5$1$ 2 8$1$2$ 3 8$1$2$ T 2$3$5$ T Item 5 Item 5 Staff Report        Item 5: Staff Report Pg. 4  Packet Pg. 72 of 263  Vers.: Aug. 5, 2019 Page 1 of 6 AMENDMENT NO. 2 TO CONTRACT NO. S23184693 BETWEEN THE CITY OF PALO ALTO AND INFOSEND, INC. This Amendment No. 2 (this “Amendment”) to Contract No. S23184693 (the “Contract” as defined below) is entered into as of January 22, 2024 by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and INFOSEND, INC., a California Corporation, located at 4240 E. La Palma Ave., Anaheim, CA 92807 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of printing services, as detailed therein. B. The Parties now wish to amend the Contract in order to increase compensation by Three Hundred Thousand Dollars ($300,000) from Two Hundred Fifty-Five Thousand ($255,000) to a new total not to exceed amount of Five Hundred Fifty-Five Thousand Dollars ($555,000) with no change to the contract term, and to amend the schedule of rates. 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. S23184693 between CONSULTANT and CITY, dated February 1, 2023 as amended by: Amendment No. 1, dated September 6, 2023 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 Five Hundred Fifty-Five Thousand Dollars ($555,000). The yearly rate for year one is not to exceed One Hundred Thirty-Five Thousand Dollars ($135,000) and years two and three shall not exceed Two Hundred Ten Thousand dollars ($210,000) per year. 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 DocuSign Envelope ID: 806F3512-AEDD-452F-9ACF-A0136EE03EA2 Item 5 Attachment A - Contract Infosend, Inc., Amendment No. 2 (S23184693)        Item 5: Staff Report Pg. 5  Packet Pg. 73 of 263  Vers.: Aug. 5, 2019 Page 2 of 6 payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.” 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 “C-1” entitled “SCHEDULE OF RATES”, 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.) DocuSign Envelope ID: 806F3512-AEDD-452F-9ACF-A0136EE03EA2 Item 5 Attachment A - Contract Infosend, Inc., Amendment No. 2 (S23184693)        Item 5: Staff Report Pg. 6  Packet Pg. 74 of 263  Vers.: Aug. 5, 2019 Page 3 of 6 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 INFOSEND, INC. Officer 1 By:______________________________ Name:___________________________ Title:____________________________ Officer 2 By:______________________________ Name:___________________________ Title:____________________________ Attachments: EXHIBIT “C-1” “SCHEDULE OF RATES” (AMENDED, REPLACES PREVIOUS) DocuSign Envelope ID: 806F3512-AEDD-452F-9ACF-A0136EE03EA2 President Russ Rezai Executive Vice President Roxana Weil Item 5 Attachment A - Contract Infosend, Inc., Amendment No. 2 (S23184693)        Item 5: Staff Report Pg. 7  Packet Pg. 75 of 263  Vers.: Aug. 5, 2019 Page 4 of 6 EXHIBIT C-1 SCHEDULE OF RATES AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) CONSULTANT’S schedule of rates is as follows but not limited to the following: BID ITEM (PRICE IS INCLUSIVE OF ALL APPLICABLE TAXES) UNIT PRICE 1 $ 0.16 $ 0.16 $ 1.00 4 $ 0.80 5 $ 0.50 6 $ 0.65 7 $ 0.40 8 $ 0.40 9 $ 0.18 DocuSign Envelope ID: 806F3512-AEDD-452F-9ACF-A0136EE03EA2 Item 5 Attachment A - Contract Infosend, Inc., Amendment No. 2 (S23184693)        Item 5: Staff Report Pg. 8  Packet Pg. 76 of 263  Vers.: Aug. 5, 2019 Page 5 of 6 BID ITEM (PRICE IS INCLUSIVE OF ALL APPLICABLE TAXES) UNIT PRICE 10 $ 0.10 $ 0.20 12 $ 0.20 13 $ 0.18 14 $ 0.16 Sample Item No. 14 from the RFP Attachment E – Cost Proposal 15 $ 0.16 16 $ 0.16 17 $ 0.10 $ 1.00 19 $ 1.00 20 $ 0.174 DocuSign Envelope ID: 806F3512-AEDD-452F-9ACF-A0136EE03EA2 Item 5 Attachment A - Contract Infosend, Inc., Amendment No. 2 (S23184693)        Item 5: Staff Report Pg. 9  Packet Pg. 77 of 263  Vers.: Aug. 5, 2019 Page 6 of 6 21 $ 0.095 22 $ 4.83 w/100% recycled, Fold & Saddle stitch Carton Pack 23 $ 0.137 24 $ 0.293 *Actual pricing will be provided at time of order and based on actual quantity. Unit pricing will remain constant. Recycled papers will be utilized if available. Total item price will be provided at time of order and based on actual quantity. The City does not guarantee a minimum or maximum order quantity. The total compensation for year one is not to exceed One Hundred Thirty-Five Thousand Dollars ($135,000) and years two and three shall not exceed Two Hundred Ten Thousand dollars ($210,000) per year. DocuSign Envelope ID: 806F3512-AEDD-452F-9ACF-A0136EE03EA2 Item 5 Attachment A - Contract Infosend, Inc., Amendment No. 2 (S23184693)        Item 5: Staff Report Pg. 10  Packet Pg. 78 of 263  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Administrative Services Meeting Date: February 5, 2024 Report #:2401-2481 TITLE Approval of Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) for Business Tax and Business Registry Certificate Program Fee Consulting Services in a Total Not- To-Exceed Amount of $860,555 Over a Three-Year Term; CEQA Status – Not a Project RECOMMENDATION Staff recommends that the City Council approve and authorize the City Manager or his designee to execute the attached contract with Hinderliter, de Llamas, and Associates (HdL) (Attachment A, Contract No. C23187298C) in an amount not-to-exceed $860,555 for business tax and business registry certificate program fee program administration, fee payment collection, reporting, and compliance services over a three-year term ending June 30, 2026. EXECUTIVE SUMMARY Staff recommends that Council approve the attached contract with HdL for ongoing administration, collection, and compliance activities for the BT and BRC. HdL has implemented the City’s filing and payment portal for the Business Tax (BT) and Business Registry Certificate (BRC) program. To expedite implementation, staff executed a contract in fall 2023, totaling $30,000 for implementation services, targeting October 2023 as go live for the filing and payment portal. HdL completed the project, along with supporting stakeholder engagement sessions. BACKGROUND A Request for Proposal (RFP) for tax and fee consulting services was issued in Spring 2023. The RFP solicited proposals for support administration, reporting, and auditing of certain taxes and to also implement the City’s new Business Tax (BT), as passed by the voters in November 2022. Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 1  Packet Pg. 79 of 263  On June 19, 20231, the City Council approved contract number C23187298A with MuniServices, LLC for tax and fee consulting services. Tasks in the contract include: 1.Sales tax analysis, information, and reporting services 2.Administration, reporting, and audit services for: a.Business Tax (BT) b.Business Registry Certificate Program (BRC) c.Business Improvement District (BID) d.Transient Occupancy Tax (TOT) e.Telephone Users Tax (TUT) In June 2023, the City Council approved a contract with MuniServices for BT and BRC administration, collection, and compliance services. In August 2023, the City issued a notice to MuniServices partially suspending services item #2a and #2b in the above list due to failure to adhere to the schedule of performance (see Exhibit B of contract number C23187298A) for implementation of BT collection services. HdL submitted a proposal for the RFP issued in Spring 2023 and was the only other firm to submit a proposal for BT and BRC administration and collection services. Staff executed a contract totaling $30,000 for BT and BRC implementation costs. The attached contract is for the ongoing administration and collection of the BT and BRC. ANALYSIS Procurement Process Detailed discussion of the procurement process for these services can be found in the June 19, 2023 report to CouncilError! Bookmark not defined.. Below is a summary of the RFP process: Table #1: Summary of Request for Proposal2 Proposal Description Tax and Fee Consulting Services (RFP #187298) Issue Date February 9, 2023 Proposed Length of Project Ongoing Number of Vendors Notified 1,485 Number of Proposal Packages Downloaded 12 Proposal Due Date / Total Days to Respond to Proposal March 2, 2023 / 22 calendar days Pre-Proposal Meeting None 1 City Council, June 19, 2023, Item #33, Report #2304-1337: https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82343 2 Tax and Fee Consulting Services Request for Proposal posted on PlanetBids: https://pbsystem.planetbids.com/portal/25569/bo/bo-detail/102065 Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 2  Packet Pg. 80 of 263  Table #1: Summary of Request for Proposal2 Number of Proposals Received Three Proposal Price Range $111,800 to $1,292,300 Public Link to Solicitation https://pbsystem.planetbids.com/portal/25569/ bo/bo-detail/102065 Based on the evaluation committee review, MuniServices was selected for tax and fee collection and administration services. HdL submitted a proposal for the same services as MuniServices and was ranked second for these services, after MuniServices. However, through the implementation of the Business Tax, a change to a new provider was necessary to ensure a supported and timely implementation of the new business tax. HdL, as the second highest scored provider was evaluated and engaged to assist in administration of this tax as discussed above. Table 2 compares fees for the BT and BRC services with HdL and previous contract with MuniServices for ongoing administration of the Business Tax and Business Registry Program (BRC). The attached contract with HdL assumes a three-year term, while the contract with MuniServices was a five-year term. The table below includes three-year costs for comparison purposes. Total basic services and additional services in the three-year HdL agreement is $860,055, while the three-year contract with MuniServices was $898,050. While this shorter agreement term represents a 4.4% increase in cost, staff and HdL significantly increased compliance and enforcement services, from approximately $20,000 per year to $117,425 per year, to bolster discovery efforts and shift from as needed compliance review and audit to quarterly compliance review and ongoing tax audit. Maintaining this increased level of audit and compliance review will ensure more accurate and solid tax and demographic data for BT and BRC on an ongoing basis. While collection and administration services increased by approximately 12% annually, HdL has demonstrated robust engagement, support, and capacity to problem solve. Table #2: Cost Comparison of HdL and MuniServices Contracts SERVICE PREVIOUS $163,610/YEAR NEW APPROX. $259,865/YEAR Collection & Administration 5-yr basic services: $718,050 (approx. $143,610/year) Annual flat fee: $10,000 Annual $13/participant fee 3-yr basic services: $424,320 (approx. $141,440/yr) Per processed account fee: $17/ per filing (~4 filings per year for each business) Compliance & Enforcement 5-yr basic services: $100,000 (3approx. $20,000/yr) Discovery: Minimum annual fee: $7,500 35% contingency 3-yr basic services: $352,275 (approx. $117,425/yr) Discovery & Audit: 35% applied to all monies received resulting from consultant discovery and audit work Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 3  Packet Pg. 81 of 263  Implementation costs are not listed in the above table, however both firms proposed $30,000 for this task. Business Tax Implementation The BT and BRC filing and payment portal went live in early October 2023. The implementation calendar can be found on the City’s website3. Collection and administration of the business tax portal will be done by HdL. The 2023 calendar year business tax filing was due January 1 and businesses have until the end of January to file without penalty or interest. Staff and HdL, have been actively meeting with business to provide support through notifications, information sessions, and individual virtual consultations, assisting larger businesses with complex filings and helping smaller businesses simplify their filings. Temporary staff resources are dedicated to manage the program; provide in-house tax administrator support (as defined by the business tax ordinance); tax analysis and review beyond the consultant’s scope of work; and customer service and support for the City’s business community. The Administrative Services Department (ASD) will evaluate future staffing needs once service needs have stabilized and filings are submitted and processed at a regular, quarterly cadence. FISCAL/RESOURCE IMPACT As discussed, the service cost for BT and BRC administration, collection, and compliance services are higher with HdL compared to the previous consultant. HdL has demonstrated adherence to the City’s implementation timeline and responsive customer service and expertise in implementation and the ongoing administration of the business tax. The average annual cost of the agreement with HdL is $259,865, approximately fifty percent more of what was included in the FY 2024 Adopted Budget ($177,000). Staff will include a request in the FY 2024 Mid-Year Budget Review for $41,000 ($217,850 basic service costs for FY 2024, less $177,000 included in the FY 2024 Adopted Operating Budget). Funding for future contract years will be subject to City Council review through the annual budget process. First year cost to implement and begin collection of the business tax is estimated to be $247,850, broken down as follows: •Implementation: $30,000 (separate contract with HdL) 3 www.cityofpaloalto.org/businesstax Audit: $100/hour Collection: 25% applied to all revenue received Payment Processing N/A 3-yr basic services: $3,000 ACH/eCheck fee: $0.50/transaction Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 4  Packet Pg. 82 of 263  •Administration and Collection: $136,000 •Compliance and Enforcement: $80,850 •Payment Processing: $1,000 During the development of the business tax, preliminary administrative cost estimates ranged between $0.5 million to $1.0 million. Business tax revenue, net of administrative expense, will be allocated each year as part of the City Council’s annual budgeting process, per the Advisory Spending Guidelines for Business Tax Proceeds that were adopted by Council on August 22, 20224. In total, current administrative costs for tax administration are estimated at $0.6 million including the recommended contract ($0.3 million) and staff resources ($0.3 million). A formal action to adjust the Table of Organization will be forth coming in a future budget process as staff continues to assess needs through the implementation process versus ongoing administration, collection and enforcement, as noted above, this program is currently using the equivalent of 1.0 FTE to support administration. STAKEHOLDER ENGAGEMENT Engagement with the business community has been extensive including information sessions, individual appointments for support, and targeted discussion with both large and small companies to support a smooth roll out of the new business tax. HdL has been instrumental in providing this facilitation and service. Staff worked closely to evaluate and select the contract award for these services given the importance and complexities of this new tax. ENVIRONMENTAL REVIEW This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378(b)(4) (government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment). ATTACHMENTS Attachment A: Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services APPROVED BY: Kiely Nose, Assistant City Manager 4 City Council, August 22, 2022, Item #AA1: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/agendas-minutes/city-council-agendas-minutes/2022/20220822/20220822pccsm-amended-redacted- linked.pdf#page=313 Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 5  Packet Pg. 83 of 263  Professional Services Rev. Dec.15, 2020 Page 1 of 22 CITY OF PALO ALTO CONTRACT NO. C23187298C AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND HINDERLITER DE LLAMAS & ASSOCIATES (HDL) This Agreement for Professional Services (this “Agreement”) is entered into as of the 1st day of October, 2023 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and HINDERLITER DE LLAMAS & ASSOCIATES (HDL) a California Corporation located at 120 S. State College Blvd. Suite 200, Brea, California 92821 (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY intends to engage in business tax and business registry (the “Project”) and desires to engage a consultant to provide the administration, collection, enforcement, compliance, and audit activities for the City’s business tax and business registry certificate 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 June 30, 2026 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 DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 6  Packet Pg. 84 of 263  Professional Services Rev. Dec.15, 2020 Page 2 of 22 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 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 Seven Hundred Eighty- Two Thousand, Five Hundred Ninety-Five Dollars ($782,595.00). 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 Seventy-Seven Thousand Nine Hundred Sixty Dollars ($77,960.00) 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 Eight Hundred Sixty Thousand, Five Hundred Fifty-Five Dollars ($860,555.00), 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 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 DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 7  Packet Pg. 85 of 263  Professional Services Rev. Dec.15, 2020 Page 3 of 22 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. 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 DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 8  Packet Pg. 86 of 263  Professional Services Rev. Dec.15, 2020 Page 4 of 22 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. 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. 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 Josh Davis 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 DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 9  Packet Pg. 87 of 263  Professional Services Rev. Dec.15, 2020 Page 5 of 22 or timely completion of the Services or a threat to the safety of persons or property. CITY’s Project Manager is Josie Stokes, Administrative Services Department, Revenue Division, 250 Hamilton Avenue Palo Alto, CA, 94301, Telephone: 650-329-2291. 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 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”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 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 DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 10  Packet Pg. 88 of 263  Professional Services Rev. Dec.15, 2020 Page 6 of 22 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. 16.4 Except in cases where such failure is attributable to CONSULTANT’s failure to perform under this Agreement, negligence, or will misconduct, CONSULTANT shall not be liable for any Client monies not collected by CONSULTANT, or any special, incidental, or consequential damages of any nature whatsoever, even if such restrictions deprive one or more remedies of their essential purpose. This damage exclusion is independent of any remedies provided for herein. 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 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 DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 11  Packet Pg. 89 of 263  Professional Services Rev. Dec.15, 2020 Page 7 of 22 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 thirty (30) 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 To CONSULTANT: Attention of the Project Manager at the address of DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 12  Packet Pg. 90 of 263  Professional Services Rev. Dec.15, 2020 Page 8 of 22 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 incorporated by reference and as amended from time to time. CONSULTANT shall comply with DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 13  Packet Pg. 91 of 263  Professional Services Rev. Dec.15, 2020 Page 9 of 22 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 $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 14  Packet Pg. 92 of 263  Professional Services Rev. Dec.15, 2020 Page 10 of 22 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. 28.4. CONSULTANT will notify City promptly upon learning of any breach in DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 15  Packet Pg. 93 of 263  Professional Services Rev. Dec.15, 2020 Page 11 of 22 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 pai d 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. DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 16  Packet Pg. 94 of 263  Professional Services Rev. Dec.15, 2020 Page 12 of 22 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 A: SCOPE OF SERVICES EXHIBIT B: SCHEDULE OF PERFORMANCE EXHIBIT C: COMPENSATION EXHIBIT C-1: SCHEDULE OF RATES EXHIBIT D: INSURANCE REQUIREMENTS THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED. DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 17  Packet Pg. 95 of 263  Professional Services Rev. Dec.15, 2020 Page 13 of 22 CONTRACT No. C23187298C 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 HINDERLITER DE LLAMAS & ASSOCIATES (HdL) Officer 1 By: Name: Title: Officer 2 By: Name: Title: DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Andrew Nickerson President Richard Park CFO Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 18  Packet Pg. 96 of 263  Professional Services Rev. Dec.15, 2020 Page 14 of 22 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”. CONSULTANT (HdL) will provide the following services relative to the administration, collection, enforcement, compliance, and audit activities for the City’s business tax and business registry certificate program: 1. Operations Management Services 1.1. Establish and maintain database of businesses for the business registry certificate program and business tax. 1.2. Receive and process, in a timely fashion: 1.2.1. Business registry applications, renewals and payments, and. 1.2.2. Business tax filings, amended returns, and payments. 1.3. Renewal and payment notices: 1.3.1. Business registry renewal notices will be sent renewal notices to active businesses within 30 days of the renewal period end date or at another interval specified by CITY. 1.3.2. Business tax payment reminder notices will be sent within 30 days of the tax payment due date or at another interval specified by CITY. 1.4. Provide businesses multiple options for submitting applications, renewals, tax filing, payments, or support requests (including via website, email, mail, phone, and fax). 1.4.1. Have experience and capabilities to process business payments, renewals, delinquent payments and ongoing monitoring and administration of CITY’s business registry certificate program and business tax, as described in the CITY’s municipal code, ordinances, policies and program procedure manuals. 1.4.2. Consultant specialists will be available for live interactions Monday through Friday, 8:00am to 5:00pm Pacific). 1.4.3. Respond to business correspondence via return phone call or written correspondence within 24 hours. 1.5. Remit revenue to CITY no less than monthly, along with detail of business registry applications, business tax filings, and any additional documentation. 1.6. Provide CITY staff access to website portal offering business registry inquiry, reporting, and electronic department approval capabilities. 2. Compliance Services: 1) Identify and register businesses which are subject to business registry certificate program and/or business tax, 2) collect known debt as pertains to business registry certificate and/or business tax, and 3) identify under-reported registration fee and/or tax liability. 2.1. Discovery Services 2.1.1. Develop a list of businesses subject to CITY business registry certificate or taxation. 2.1.2. Notify non-compliant businesses of their options to comply or dispute their non- compliant status. Notification and support to businesses will be facilitated through the website, mail, email, phone and/or fax. 2.1.3. Review information and forms submitted by the business for completion and accuracy, DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 19  Packet Pg. 97 of 263  Professional Services Rev. Dec.15, 2020 Page 15 of 22 inclusive of any additional required documentation (i.e. home occupation permit). All submissions are filed and stored electronically and made available to CITY upon request. 2.1.4. Provide businesses with detailed invoicing and options to pay via website, mail, and phone. 2.1.5. Remit revenue to CITY no less than monthly, along with detail of business registry applications, business tax filings, and any additional documentation. 2.2. Collection Services 2.2.1. Identify businesses subject to CITY business registry certificate or taxation which have known debt to CITY and have failed to pay within an appropriate time frame. 2.2.2. Notify businesses of their options to comply or dispute their non-compliant status. 2.2.3. Provide businesses with detailed invoicing and options to pay via website, mail and phone. 2.2.4. Remit revenue to CITY no less than monthly, along with detail of business registry applications, business tax filings, and any additional documentation. 2.3. Audit Services 2.3.1. Identify potential under-reporting and/or misclassified businesses. 2.3.2. Audit businesses mutually agreed to by CITY and CONSULTANT that are identified as potential under-reporting businesses. 2.3.3. Submit audit summaries to CITY and discuss further actions. 2.3.4. Educate businesses on proper reporting practices. 2.3.5. Invoice and collect identified delinquencies. 3. Payment Processing – services include PCI compliant payment processing services powered by FIS Global, which supports both credit card (taxpayer funded) and eCheck (CITY funded) transactions. 3.1. CITY Responsibilities 3.1.1. As a condition to its receipt of the Service, CITY shall execute and deliver any and all applications, agreements, certifications or other documents required by FIS Global, Networks or other third parties whose consent or approval is necessary for the processing of Transactions by FIS Global. “Network” is an entity or association that operates, under a common service mark, a system which permits participants to authorize, route, and settle Transactions among themselves, including, for example, networks operated by VISA USA and Mastercard, Inc., NYCE Corporation, American Express, and Discover. 3.1.2. CITY hereby grants CONSULTANT the full right, power and authority to request, receive and review any Data or records reflected in a Transaction report. CITY represents and warrants that it has the full right and authority to grant these rights. DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 20  Packet Pg. 98 of 263  Professional Services Rev. Dec.15, 2020 Page 16 of 22 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. Milestones Completion Number of Days/Weeks (as specified below) from NTP 1. Task 1: Operations Management Services Ongoing with first collection cycle beginning October 2023; filing and collection occurring quarter beginning January 2024. 2. Task 2: Compliance Services a. Discovery b. Collection c. Audit Ongoing 3. Task 3: Payment Processing 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. DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 21  Packet Pg. 99 of 263  Professional Services Rev. Dec.15, 2020 Page 17 of 22 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. DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 22  Packet Pg. 100 of 263  Professional Services Rev. Dec.15, 2020 Page 18 of 22 BUDGET SCHEDULE 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: TRAVEL EXPENSE up to the not-to-exceed amount of: 3,000.00. BUDGET SCHEDULE RATE EST. UNIT NOT TO EXCEED AMOUNT (3 YEARS) YEAR 1 FY 2024 (10/1/2023- 6/30/2024) YEAR 2 FY 2025 YEAR 3 FY 2026 Task 1: Operations Management Services Includes all sub-tasks listed under Task 1 of Scope of Services. Fees are increased as of July 1 of each fiscal year based on the 12-month Bay Area Consumer Price Index (Urban Wage Earners and Clerical Workers, San Francisco-Oakland-San Jose) as of March 31, not to exceed 5%. Max. Annual CPI Adj 4%4% Per processed account fee - any account for which an application or renewal/return was processed, or active account which was sent a renewal notice $17.00 8,000 $424,320.00 $136,000.00 $141,440.00 $146,880.00 Task 2: Compliance Services 2.1: Discovery Services Contingency percentage applies to all monies received for the current tax/license period and any other period collected (including monies received for taxes, penalities, interest, and fees). In the event that CITY discovers a non-compliant business and reports to CONSULTANT, activity will be categorized as a collection service effort rather than a discovery service effort. 35%231,000 $242,550.00 $80,850.00 $80,850.00 $80,850.00 2.2: Collection Services Contingency percentage applies to revenues received as a result of compliance services. 25%57,750 $28,875.00 N/A $14,437.50 $14,437.50 2.3: Audit Services Contingency percentage applies to revenues received as a result of audit services 35%231,000 $80,850.00 N/A N/A $80,850.00 Sub-Total: Compliance Services $352,275.00 $80,850.00 $95,287.50 $176,137.50 Task 3: Payment Processing Taxpayer Funded: Credit and debit card processing CITY authorizes CONSULTANT to collect covenience fee from taxpayer at the time of payment. 2.90%N/A N/A N/A N/A N/A Taxpayer Funded: Returned payment/NSF fee, each occurance 25.00%N/A N/A N/A N/A N/A City Funded: ACH/eCheck processing per transaction fee $0.50 2,000 $3,000.00 $1,000.00 $1,000.00 $1,000.00 TOTAL BASIC SERVICES $779,595.00 $217,850.00 $237,727.50 $324,017.50 REIMBURSEABLE EXPENSES $3,000.00 $1,000.00 $1,000.00 $1,000.00 ADDITIONAL SERVICES OR CONTINGENCY $77,960.00 $21,785.00 $23,773.00 $32,402.00 TOTAL NOT-TO-EXCEED $860,555.00 $240,635.00 $262,500.50 $357,419.50 DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 23  Packet Pg. 101 of 263  Professional Services Rev. Dec.15, 2020 Page 19 of 22 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. All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information. DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 24  Packet Pg. 102 of 263  Professional Services Rev. Dec.15, 2020 Page 20 of 22 EXHIBIT C-1 SCHEDULE OF RATES CONSULTANT’s schedule of rates is as follows: Hourly Rate Principal $325 Programmer $295 Senior Analyst $245 Analyst $195 DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 25  Packet Pg. 103 of 263  Professional Services Rev. Dec.15, 2020 Page 21 of 22 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. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN. REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 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, INSURIN G 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@CITYOFPALOALTO.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. DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 26  Packet Pg. 104 of 263  Professional Services Rev. Dec.15, 2020 Page 22 of 22 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 1. 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 EMAILING TO PURCHASINGSUPPORT@CITYOFPALOALTO.ORG DocuSign Envelope ID: 679720EC-8E5C-4DCE-AA1B-888B91EAF8B5 Item 6 Attachment A - Contract No. C23187298C with Hinderliter, de Llamas, and Associates (HdL) Business Tax and Business Registry Program Fee Consulting Services        Item 6: Staff Report Pg. 27  Packet Pg. 105 of 263  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Planning and Development Services Meeting Date: February 5, 2024 Report #:2312-2347 TITLE SECOND READING: Adopt Ordinances Amending Planned Community Ordinance 2343 for 2901- 2905 Middlefield Road and Establishing a Separate Planned Community Zoning Designation for 702 Ellsworth Place to Enable the Development of a new Single-Story, Single-Family Residence. CEQA Status -- Categorically Exempt Under CEQA Guidelines Sections 15061(b)(3), 15301, and 15303 (FIRST READING: December 11, 2023 PASSED 6-0-1, Veenker absent) RECOMMENDATION Adopt two Planned Community (PC) ordinances reflecting Council action December 11, 2023. EXECUTIVE SUMMARY The City Council introduced two ordinances to amend Planned Community Ordinance 2343 December 11, 2023. Consistent with direction from the City Council, staff revised the ordinances for adoption. BACKGROUND On December 11, 2023, the Council conducted a public hearing to introduce a pair of ordinances to amend Planned Community Ordinance 2343, relating to 2901-2905 Middlefield Road and a new single-family home proposed for 702 Ellsworth Place. The proposed amendments affecting 2901-2905 Middlefield Road addressed changes to configuration of the off-street parking spaces for the existing apartment building residents. The draft ordinance proposed a new loading and delivery space on Sutter Avenue and relocating one of the off- street parking spaces. A resident of Ellsworth Place expressed concern that delivery vehicles would not be able to access the existing residences on Ellsworth Place and presented an alternative design for a loading and delivery space on the property at 2901-2905 Middlefield. Council accepted that alternative over the configuration contained in the draft ordinance. The Council also discussed height limits and design criteria for a fence proposed to be constructed within the sight triangle on the 702 Ellsworth Place parcel based on pedestrian and Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 1  Packet Pg. 106 of 263  bicycles safety and visibility considerations at the intersection of Ellsworth Place and Middlefield Road. 1. UPS approved delivery spot plan on Ellsworth that does not affect the footprint of the house, that provides a useable delivery spot for 10’ to 11’ wide trucks, maintains safe road circulation with Middlefield, does not remove public parking on Sutter, and to relocate the communications pole at a shared expense of the City and the property owner. (v) Property owner shall provide a 30’ x 10’ temporary loading and delivery area on Ellsworth Place adjacent to the existing apartment building. Property owner shall relocate the existing communications utility pole and guy wires and install any improvements as required by the Director of Utilities and the Director of Planning and Development Services to comply with parking design and safety standards. (vi) Property owner shall be responsible for all costs associated with fulfilling the requirements of this paragraph, provided further that the City shall cover 50% of the costs to relocate the communications utility pole and guy wires. 2. Require graded fencing that would allow visibility line of sight through 2 angles of the fence that allows adequate transparency of 3-foot fence. (v) The sight triangle at the southeast corner of the intersection of Ellsworth Place and Middlefield Road shall extend to the southernmost corner of the property along Middlefield Road and shall not be obstructed by new impediments taller than 1 foot, except for the installation of an additional sign stating “No Delivery Trucks Over 24’ long” below or above the existing ‘No Outlet’ sign located within the Middlefield Road right of way between the sidewalk and Handa’s the 702 Ellsworth Place property line Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 2  Packet Pg. 107 of 263  and a maximum 3-foot tall fence of a grated or similar design that maintains visibility through the sides of the sight triangle adjacent to Ellsworth Place and Middlefield Road. Though ‘grated’ is the term used in the motion, the applicant does not propose a waffle- pattern; the exhibit indicates 3-foot tall wrought iron fence as Mr. Handa presented to Council on December 11. The vertical bars of the wrought iron fence will be spaced 4” on center to provide adequate visibility. 3. Direct Staff to pursue ADA tactile markers on the sidewalk where it intersects the Ellsworth Place easement subject to approval by the Director of Public Works at the City’s expense. Staff reached out to Public Works regarding the potential placement of truncated dome surfaces on the Middlefield Road sidewalk on either side of the Ellsworth Place width. Typically, such surfaces are used for sidewalk ramps rather than even surfaces, so this is a discussion that will continue after the Council second reading of these ordinances. 4. Width of Ellsworth Place at entrance to be 26-feet wide for at least 100-feet from Middlefield Road. Staff revised Section 5(a) of the proposed 2901-2905 Middlefield Road as follows: (i) A 42-inch-wide swath of asphalt paving shall be created alongside the northern edge of Ellsworth Place beginning at the Middlefield Road curb line and extending eastward approximately 100 feet approximately 37 feet to the location of an existing communications utility pole guy-wire, to increase the width of Ellsworth Place. Staff revised section 5(a) of the proposed 702 Ellsworth Place ordinance as follows: (ii) The development plan shall include a 2-foot, 6-inch-wide swath of asphalt pavement alongside the southern edge of Ellsworth Place beginning at the Middlefield Road curb line and extending eastward approximately 100 feet approximately 42 feet to the proposed walkway to the single-family residence, to increase the width of Ellsworth Place. Combined, these two easements increase the width of Ellsworth Place from approximately 20 feet to approximately 26 feet. The exhibits to both proposed ordinances depict these additional easement areas. 5. Parking space #16 can be removed at the discretion of the Planning Director. Staff revised section 5(b) of the proposed ordinance for 2901-2905 Middlefield Road as follows: Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 3  Packet Pg. 108 of 263  (ii) A curbside loading zone 40 feet in length shall be designated on Sutter Avenue in front of 2901 Middlefield Road with signage and curb painting. Property owner may remove parking space #16 at the discretion of the Director of Planning and Development Services. FISCAL/RESOURCE IMPACT Utilities staff provided a rough estimate of the $20,000-$25,000 for engineering and construction costs for the relocation of the communications pole, which will be split equally between the City of Palo Alto and the project applicant. Environmental Review Council action on this item is exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15061(b)(3) in that it can be seen with certainty that minor changes to the parking configuration at 2901-2905 Middlefield Road and construction of a single-family home will not result in a significant impact on the environment. Council action on the PC ordinance for 2901-2905 Middlefield Road (Attachment A) is also categorically exempt under CEQA Guidelines section 15301 (minor alterations to existing facilities). Council action on the PC ordinance for 702 Ellsworth Place (Attachment B) is also categorically exempt under CEQA Guidelines section 15303 (construction of a new single-family residence). ATTACHMENTS Attachment A: Revised PC Ordinance for 2901 Middlefield Road with Exhibit 1 Attachment B: Revised PC Ordinance for 702 Ellsworth Place with Exhibit 1 APPROVED BY: Jonathan Lait, Planning and Development Services Director Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 4  Packet Pg. 109 of 263  *NOT YET APPROVED* Ordinance No. Attachment A Ordinance of the Council of the City of Palo Alto Amending Section 18.08.040 The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Declarations. (a)On February 2, 2023, Dewey Land Company LLC (“Dewey”) and Handa Developer’s Group/RRP (“Handa”) applied to amend Planned Community Ordinance 2343 (“PC- (b)At a March 13, 2023 study session, the City Council considered the prescreening application and indicated the project applicants should proceed with a formal PC rezoning (c)On June 28, 2023, July 12, 2023, and August 9, 2023 the Palo Alto Planning and Transportation Commission (“PTC”) held a series of public hearings to consider the application. (d)The amendment recommended by the PTC would reduce the area of the Planned Community PC 2343 from approximately 26,386 sf to approximately 19,893 square feet to (i) restripe the tenant parking facility to assign four uncovered parking spaces to (v) add a 3’6”-wide swath of paving alongside Ellsworth Place beginning at the (e)The PTC recommended concurrent adoption of a companion ordinance 1 0001_20240124_ca29 Item 7 Attachment A - Revised PC Ordinance for 2901 Middlefield Road with Exhibit 1        Item 7: Staff Report Pg. 5  Packet Pg. 110 of 263  *NOT YET APPROVED*Attachment A (Ordinance No. XXXX) to designate the remaining approximately 6,493 square foot parcel currently (f)The City Council held public hearings on September 18, 2023 and November 6 December 11, 2023 to consider the PTC’s recommendation and additional public input, and (g)The Council, after due consideration of the PTC’s recommendations, finds: (ii) Amendment to the existing Planned Community PC-2343 will provide public Policy L-1.1 Infill development in the urban service area should be compatible with its 2 0001_20240124_ca29 Item 7 Attachment A - Revised PC Ordinance for 2901 Middlefield Road with Exhibit 1        Item 7: Staff Report Pg. 6  Packet Pg. 111 of 263  *NOT YET APPROVED*Attachment A Policy L-1.5 Design buildings to complement streets and public spaces; to promote SECTION 2. Amendment of Zoning Map. Section 18.08.040 of the Palo Alto Municipal Code, the "Zoning Map," is hereby amended to rezone the certain property known as 2901-2905 Middlefield Road from PC-2343 to "PC- XXXX.” The subject property and revised zoning designation is shown on the map labeled Exhibit "A1," attached hereto and incorporated herein by reference. SECTION 3. Development Plan Those certain plans entitled PROPOSED PC AMENDMENT TO PC 2343, DATED 1967, a copy of which is attached hereto as Exhibit “B1” and incorporated herein, are hereby approved as the Development Plan for the subject property. SECTION 4. Uses. (a)Permitted Uses. The permitted uses within the PC boundary shall be limited to a 12-unit apartment building: The existing apartment building shall remain on the 2901-2905 SECTION 5. Site Development Regulations. (a)Compliance with Development Plan. All improvements and development shall be substantially in accordance with the Development Plan, except as modified herein and as (i) A 42-inch-wide swath of asphalt paving shall be created alongside the (iv) Any exterior changes to the apartment building or any new construction not 3 0001_20240124_ca29 Item 7 Attachment A - Revised PC Ordinance for 2901 Middlefield Road with Exhibit 1        Item 7: Staff Report Pg. 7  Packet Pg. 112 of 263  *NOT YET APPROVED*Attachment A regulations shall require an amendment to this Planned Community Zone or, (vi) The 35-foot sight triangle at the intersection of Ellsworth Place and (b)Parking and Loading Requirements. (i) One covered parking space shall be provided for each of the 12 residential (ii) A curbside loading zone 40 feet in length shall be designated on Sutter (vi) Property owner shall be responsible for all costs associated with fulfilling the (c)Trash Enclosures and Pickup. Trash enclosures and pickup shall be maintained with access from Sutter Avenue, and not from Ellsworth Place. (d)Development Schedule. The parking lot restriping on 2901-2905 Middlefield Road shall be immediately implemented upon the effective date of this ordinance. Off-street parking 4 0001_20240124_ca29 Item 7 Attachment A - Revised PC Ordinance for 2901 Middlefield Road with Exhibit 1        Item 7: Staff Report Pg. 8  Packet Pg. 113 of 263  *NOT YET APPROVED*Attachment A space #16 shall be provided prior to issuance of building permits for the construction of the 702 (e)Minor Variations in Project. Minor changes to the Project may be approved by the Director, according to the provisions of Palo Alto Municipal Code Section 18.76.020(b)(3)(D) SECTION 6. The City Council finds that this ordinance is categorically exempt from review under the California Environmental Quality Act (CEQA) Guidelines, Section 15061(b)(3) because it can be seen with certainty that minor changes to the parking configuration at 2901- 2905 Middlefield Road and construction of a single-family home pursuant to Ordinance No. XXXX will not result in a significant impact on the environment. The City Council finds that this ordinance is additional categorically exempt under Section 15301 of the CEQA Guidelines, as it involves only minor alterations to existing facilities. SECTION 7. its adoption. This ordinance shall be effective on the thirty-first day after the date of INTRODUCED: AYES: NOES: ABSENT: ________________________________________________________ APPROVED AS TO FORM:APPROVED: ________________________________________________________ ____________________________ 5 0001_20240124_ca29 Item 7 Attachment A - Revised PC Ordinance for 2901 Middlefield Road with Exhibit 1        Item 7: Staff Report Pg. 9  Packet Pg. 114 of 263  EXHIBIT 1 HAYES GROUP ARCHITECTS, INC. SPRING STREET CITY, CA 94063 650.365.0600 F: 650.365.0670 www.thehayesgroup.com PROJECT ADDRESS: 2901-2905 ROAD ALTO CA, 94306 3'-6" (N) NONEXCLUSIVE INGRESS/EGRESS EASEMENT /ASPHALT PAVING 20'-0" (E) INGRESS/EGRESS EASEMENT 14 15 (N) PARKING SPACE TYP(E) TRASH AREA ISSUANCE: 16 13 (E) AC PAVING NO. DESCRIPTION: PTC SUBMITTAL DATE: (E)07.26.2023 8 COVERED 2901 CITY COUNCIL 12.14.2023 01.10.2024702 ELLSWORTH PLACE (E)PC ORDINANCE 2901 2905 MIDDLEFIELD AVE 4 COVERED 4'-6" LOT A 127 35 194 GAS LOT B 127 35 152 BOLLARDS BLDGBLDG (N) COMMUNICATION AND GUY WIRE. 10'X30' TEMPORARY AND UNLOADING SPACE IN PAINT THE ASPHALT. DRAWING CONTENT 2901-2905 Middlefield PC Site planEXISTING LANDSCAPING STAMPB.O. SIDEWALK 02.28.2ꢀMIDDLEFIELD ROAD 26'-0" (N) DRIVEWAY APRON PER CITY STANDARD CABLE BOX JOB NUMBER: SCALE: AS NOTED DRAWN BY: All drawings and written materials contained herein constitute the original& unpublished work of the Architect and the same may not duplicated, used or disclosed without the consent of the Architect. ©Hayes Group Architects, Inc. DRAWING NUMBER A2.52901-2905 MIDDLEFIELD PC ORDINANCE SITE PLAN 1SCALE 3/32" = 1'-0" Item 7 Attachment A - Revised PC Ordinance for 2901 Middlefield Road with Exhibit 1        Item 7: Staff Report Pg. 10  Packet Pg. 115 of 263  *NOT YET APPROVED* Attachment B 1 0002_20240124_ca29 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 Rezone the Property at 702 Ellsworth Place from Planned Community Ordinance 2343 (PC-2343) to Planned Community Ordinance XXXX (PC-XXXX). The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Declarations. (a) On February 2, 2023, Dewey Land Company LLC (“Dewey”) and Handa Developer’s Group/RRP (“Handa”) applied to amend Planned Community Ordinance 2343 (“PC- 2343”) to apply solely to the property at 2901-2905 Middlefield Road, APN 127-35-194, (“Middlefield Parcel”) and rezone the property at 702 Ellsworth Place, APN 127-35-152, (“Ellsworth Parcel”) from Planned Community to Single Family Residential (R-1). (b) At a March 13, 2023 study session, the City Council considered the prescreening application and indicated the project applicants should proceed with a formal PC rezoning application to the Planning and Transportation Commission for a recommendation. (c) On June 28, 2023, July 12, 2023, and August 9, 2023 the Palo Alto Planning and Transportation Commission (“PTC”) held a series of public hearings to consider the application. The PTC recommended that PC-2343 be amended to remove the Ellsworth Parcel and to adopt two new PC ordinances to govern the Middlefield Parcel and Ellsworth Parcel, respectively, along with a corresponding amendment to Section 18.08.040 of the Palo Alto Municipal Code (Zoning Map). (d) The amendment recommended by the PTC would remove the approximately 6,493 square foot parcel currently owned by Handa at 702 Ellsworth from PC-2343 and redesignate it as a separate PC, for the purpose of constructing a single-story, single-family residence. The PTC recommended the following conditions: (i) the development plan shall include a 2’6”-wide swath of pavement alongside Ellsworth Place beginning at the Middlefield Road curb line and extending to the proposed walkway to the single-family residence to increase the width of Ellsworth Place, (ii) the 35-foot sight triangle at the intersection of Ellsworth Place and Middlefield Road shall not be obstructed by new plants, fences, or other objects taller than 1 foot, (iii) the 24-foot special setback from Middlefield Road shall be observed, (iv) the setback from the creek shall be determined by a slope stability analysis, (v) and a 6-foot setback shall apply to the rear property line, except with respect Item 7 Attachment B - Revised PC Ordinance for 702 Ellsworth Place with Exhibit 1        Item 7: Staff Report Pg. 11  Packet Pg. 116 of 263  *NOT YET APPROVED* Attachment B 2 0002_20240124_ca29 to a detached garage. (e) The PTC recommended concurrent adoption of a companion ordinance (Ordinance No. XXXX) to reduce the area of the Planned Community PC-2343 from approximately 26,386 sf to approximately 19,893 square feet to encompass 2901-2905 Middlefield Road, a 12-unit apartment building currently owned by Dewey. (f) The City Council held public hearings on September 18, 2023 and November 6- December 11, 2023 to consider the PTC’s recommendation and additional public input, and made further amendments to those recommendations regarding the width of Ellsworth Place and the sight triangle at the southeast corner of the intersection of Ellsworth Place and Middlefield Road, as set forth below. (g) The Council, after due consideration of the PTC’s recommendations, finds: (i) The site is so situated and the uses proposed for the site are of such characteristics that the application of general districts or combining zoning districts will not provide sufficient flexibility to allow the proposed development; the City's conventional zoning district RM20 would not permit the existing 12 unit structure on the proposed 0.46 acre site. (ii) Amendment to the existing Planned Community PC-2343 will provide public benefits expected to result from the Project, including expanded ingress and egress for the existing residences on Ellsworth Place through additional easements, that, when combined, would result in a 26-foot wide non- exclusive asphalt easement over a distance of approximately 100 feet extending from Middlefield Road eastward along the first 37 feet of Ellsworth Place, an additional 5-foot long by 30-inch wide easement on 702 Ellsworth Place, and the construction of an additional dwelling unit. (iii) The Council further finds that the Project provides public benefits, as described above, that are of sufficient importance to make the Project, as a whole, one with reasonable public benefit. (iv) The proposed single-family residence is compatible with existing and potential uses on adjoining sites or within the general vicinity, which are typically single- family residences and one 12-unit apartment complex. (v) The use permitted and the site development regulations are consistent with the following Palo Alto Comprehensive Plan policies and are, on balance consistent with the goals and purposes of the Comprehensive Plan: maintain Palo Alto’s livability and achieve the highest quality Item 7 Attachment B - Revised PC Ordinance for 702 Ellsworth Place with Exhibit 1        Item 7: Staff Report Pg. 12  Packet Pg. 117 of 263  *NOT YET APPROVED* Attachment B 3 0002_20240124_ca29 personal safety, public health and well-being; and to unchanged from existing conditions, which are compatible with existing SECTION 2. Amendment of Zoning Map. Section 18.08.040 of the Palo Alto Municipal Code, the "Zoning Map," is hereby amended to rezone the certain property known as 702 Ellsworth Place from PC-2343 to “PC- XXXX.” The subject property and revised zoning designation is shown on the map labeled Exhibit "A 1," attached hereto and incorporated herein by reference. SECTION 3. Development Plan Those certain plans entitled Proposed Development Plan 702 Ellsworth, a copy of which is attached hereto as Exhibit “B1” and incorporated herein, are hereby approved as the Development Plan for the subject property. SECTION 4. Uses. (a) Permitted Uses. The permitted uses within the PC boundary shall be limited to a single story single- family residence with no basement. SECTION 5. Site Development Regulations. (a) Compliance with Development Plan. All improvements and development shall be substantially in accordance with the Development Plan, except as modified herein and depicted in Exhibit 1 attached hereto. (i) Any exterior changes to the single-family residence or any new construction not specifically permitted by the Development Plan or by these site development regulations shall require an amendment to this Planned Community Zone or, if eligible, Architectural Review approval under Section 18.76 of the Palo Alto Municipal Code, as it is amended from time to time. (ii) The development plan shall include a 2-foot, 6-inch-wide swath of asphalt pavement alongside the southern edge of Ellsworth Place beginning at the Middlefield Road curb line and extending eastward approximately 100 feet approximately 42 feet to the proposed walkway to the single-family Item 7 Attachment B - Revised PC Ordinance for 702 Ellsworth Place with Exhibit 1        Item 7: Staff Report Pg. 13  Packet Pg. 118 of 263  *NOT YET APPROVED* Attachment B 4 0002_20240124_ca29 residence, to increase the width of Ellsworth Place. (iii) This additional paved area shall remain clear of obstructions. (iv) Prior to final inspections for any structure on the site, Handa shall prepare and record an ingress and egress easement over this additional paved area to the other properties on Ellsworth Place. (v) The sight triangle at the southeast corner of the intersection of Ellsworth Place and Middlefield Road shall extend to the southernmost corner of the property along Middlefield Road and shall not be obstructed by new impediments taller than 1 foot, except for the installation of an additional sign stating “No Delivery Trucks Over 24’ long” below or above the existing ‘No Outlet’ sign located within the Middlefield Road right of way between the sidewalk and Handa’s the 702 Ellsworth Place property line and a maximum 3-foot tall fence of a grated or similar design that maintains visibility through the sides of the sight triangle adjacent to Ellsworth Place and Middlefield Road. (vi) The property owner shall maintain the vegetation in the Middlefield right of way planting strip between the curb and sidewalk at a height no taller than 1 foot. (vii) The 24-foot special setback from Middlefield Road shall be observed. (viii) The setback from the creek shall be determined by a slope stability analysis, but no less than 6 feet. (ix) A 6-foot setback shall apply to the rear property line, except with respect to a detached garage. (b) Logistics Plan. A logistics plan shall be submitted for City approval prior to the issuance of a building permit for the construction of the new residence at 702 Ellsworth. The logistics plan shall address construction staging, construction worker parking, and material deliveries during site preparation and construction. It shall also include best practices for dust mitigation, stipulate permitted construction activities, hours and noise requirements, and include contact information for construction-related complaints. The property owner shall provide a $5,000 deposit to offset City’s enforcement costs reasonably incurred in responding to construction-related complaints that may arise from this project. If the deposit account balance falls to $1,000 or lower, the deposit account balance shall be replenished to $5,000. Any funds remaining in the deposit account shall be refunded to property owner upon issuance of the certificate of occupancy for the residence. (c) Development Schedule. Construction of the improvements to Ellsworth Place shall be completed within twelve (12) months of the effective date of this ordinance. Construction of other improvements shall be completed within twenty-four (24) months of the effective date of this ordinance. (d) Minor Variations in Project. Minor changes to the Project may be approved by the Director, according to the provisions of Palo Alto Municipal Code Section 18.76.020(b)(3)(D) for architectural review. “Minor” changes do not include changes in land use. Item 7 Attachment B - Revised PC Ordinance for 702 Ellsworth Place with Exhibit 1        Item 7: Staff Report Pg. 14  Packet Pg. 119 of 263  *NOT YET APPROVED* Attachment B 5 0002_20240124_ca29 SECTION 6. The City Council finds that this ordinance is categorically exempt from review under the California Environmental Quality Act (CEQA) Guidelines, Section 15061(b)(3) because it can be seen with certainty that construction of a single-family home pursuant to will not result in a significant impact on the environment. The City Council finds that this ordinance is additionally categorically exempt under Section 15303 of the CEQA Guidelines, as it approves construction of a new single-family residence. SECTION 7. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Chief Assistant City Attorney City Manager ____________________________ Director of Planning and Development Services Item 7 Attachment B - Revised PC Ordinance for 702 Ellsworth Place with Exhibit 1        Item 7: Staff Report Pg. 15  Packet Pg. 120 of 263  02.28.25 A2.6 HAYES GROUP ARCHITECTS, INC. 2657 SPRING STREET REDWOOD CITY, CA 94063 P: 650.365.0600 F: 650.365.0670 www.thehayesgroup.com DRAWING CONTENT DRAWING NUMBER All drawings and written materials contained herein constitute the original & unpublished work of the Architect and the same may not be duplicated, used or disclosed without the written consent of the Architect. © Hayes Group Architects, Inc. DRAWN BY: SCALE: JOB NUMBER: STAMP ISSUANCE: PROJECT ADDRESS: 702 Ellsworth PC Ordinance Site plan AS NOTED 2202.00 LB Da t e : 1 / 8 / 2 4 Fi l e N a m e : E l l s w o r t h H o u s e _ B I M _ A R C H NO. DESCRIPTION: DATE: PTC SUBMITTAL 07.26.2023 2901 CITY COUNCIL MODIFICATIONS 12.14.2023 PROPOSED PC ORDINANCE 01.08.2023 PP N4 9 ° 2 0 ' 0 0 " E 8 6 . 0 8 ' N52°00'00"W 130.67' S4 7 ° 1 2 ' 0 0 " W 1 0 1 . 3 0 ' S52°00'00"E 117.11'(T) 80.67'50.00' 44.50' 2'-6" (N) NONEXCLUSIVE INGRESS/EGRESS EASEMENT /ASPHALT PAVING 26'-0" (N) DRIVEWAY APRON PER CITY STANDARD 10'-0" 4'-0" FROM B.O. SIDEWALK 4'-0"RETURN LOT A 127-35-194 LOT B 127-35-152 702 ELLSWORTH FR O N T Y A R D (E) 4 COVERED PARKING SPACES (E) 8 COVERED PARKING SPACES 13 14 15 MA T A D E R O C A N A L BL D G . BLDG. BLDG. (E) TRASH AREA TANDEM (N) PARKING SPACE TYP. (E) AC PAVING EXISTING LANDSCAPING B.O. SIDEWALK (E) FIRE HYDRANT 2901-2905 MIDDLEFIELD AVE. LOT B 127-35-152 702 ELLSWORTH PLACE N52°00'00"W 229.20'(T)50.00'78.28'44.50' S3 8 ° 0 0 ' 0 0 " W 1 0 9 . 8 7 ' S3 8 ° 0 0 ' 0 0 " W 1 0 9 . 8 7 ' 10 0 . 0 0 ' 56.42' 72.61' 20'-0" (E) INGRESS/EGRESS EASEMENT 6'-0" FROM B.O. SIDEWALK SU T T E R A V E N U E MIDDLEFIELD ROAD EL L S W O R T H P L A C E 3' TALL FENCE WITH VERTICAL WROUGHT IRON BARS. PROPERTY LINE TYPICAL STANDARD CITY REQUIRED 35' SITE TRIANGLE TYP. SCALE 3/32" = 1'-0" 702 ELLSWORTH PC ORDINANCE SITE PLAN 1 702 ELLSWORTH PLACE PALO ALTO CA 94306 N S3 8 ° 0 0 ' 0 0 " W 1 0 0 . 0 0 ' EXHIBIT 1 Item 7 Attachment B - Revised PC Ordinance for 702 Ellsworth Place with Exhibit 1        Item 7: Staff Report Pg. 16  Packet Pg. 121 of 263  City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: February 5, 2024 Report #:2401-2538 TITLE SECOND READING: Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street, Trees, Shrubs, and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations) (FIRST READING: January 16, 2024 PASSED 5-2, Lythcott-Haims, Tanaka no) BACKGROUND This was heard by the City Council on January 16, 202 for a first reading and was approved 5-2, Lythcott-Haims, Tanaka no. The ordinance has been amended to reflect part B of the Council’s motion. Specifically, a provision was added to Section 8.10.070 to require requests to prune trees in excess of the limits in Section 8.10.020(i) to be submitted to the urban forester fourteen days before pruning the tree with a statement explaining why pruning beyond the limits is warranted. ATTACHMENTS Attachment A: Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street, Trees, Shrubs, and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations). APPROVED BY: Mahealani Ah Yun, City Clerk Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 1  Packet Pg. 122 of 263  *NOT YET APPROVED* Attachment A 1 0010_20240123_mv30 Ordinance No. _____ Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 (Street, Trees, Shrubs, and Plants) and Chapter 8.10 (Tree Preservation and Management Regulations). The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Chapter 8.04 (Street Trees, Shrubs, and Plants) of Title 8 (Trees and Vegetation) of the Palo Alto Municipal Code is hereby amended to read as follows (additions underlined and deletions struck through): Chapter 8.04 PUBLIC TREES, SHRUBS, HEDGES, AND PLANTS Sections: 8.04.005 Purpose. 8.04.010 Definitions. 8.04.015 Authority of city. 8.04.020 Permit required for certain work. 8.04.030 Application for permit. 8.04.040 Issuance of permit. 8.04.050 Public nuisances. 8.04.070 Enforcement. 8.04.080 Interference with enforcement. 8.04.090 Adoption of regulations. 8.04.005 Purpose. The purpose of this chapter is to protect and promote trees, shrubs, hedges, and plants located on public property within the city. In establishing these procedures and standards, the city recognizes that trees, shrubs, hedges, and plants are an essential part of the city's infrastructure, with benefits that include promoting the health, safety, welfare, and quality of life of the residents of the city; addressing climate change by sequestering carbon and providing a cooling effect; reducing air, water, and noise pollution; preventing soil erosion and Item 8 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 Street Trees Shrubs and Plants and Chapter 8.10 Tree Preservation        Item 8: Staff Report Pg. 2  Packet Pg. 123 of 263  *NOT YET APPROVED* Attachment A 2 0010_20240123_mv30 stormwater runoff; providing wildlife habitat; and enhancing the aesthetic environment. It is the city's intent to encourage the preservation of trees, shrubs, hedges, and plants. 8.04.010 Definitions. For the purposes of this title, the following words shall have the meaning ascribed to them in this section: (a) "Person" means individuals, firms, associations and corporations, and agents, employees or representatives thereof. (b) "City" means the city of Palo Alto acting by and through its authorized representatives. (c) "Street" means and includes all land lying between the boundaries of property abutting on all public streets, boulevards, alleys, and walks. (d) "Parks" means and includes all parks to which names have been given by action of the city council. (e) "Public places" means and includes all grounds, other than streets or parks, owned by, leased to, or under the control of the city of Palo Alto. (f) "Tree" means and includes any woody perennial plant generally having a single main stem and commonly achieving ten feet in height. (g) "Shrub" means and includes any woody perennial plant generally having multiple stems and commonly less than ten feet in height. (h) "Hedge" means and includes any tree, shrub, or plant, when planted in a dense, continuous line or area, as to form a thicket or barrier. (i) "Plant" means and includes all vegetation other than trees and shrubs. (j) "Public trees, shrubs, hedges, and plants" means and includes any tree, shrub, hedge, or plant in any street, park, or public place in the city of Palo Alto. (k) "Urban forester" means public works department staff including the urban forester or their designee. (l) "Tree permit" means a permit issued by the urban forester for one or more of the following purposes: (1) To permit removal of a public tree. (2) To permit public tree care, work, or treatment. (3) To permit removal of a protected tree under 8.10.050. (4) To establish a tree preservation bond. (5) For payment of "in-lieu" fees for required mitigation measures. Item 8 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 Street Trees Shrubs and Plants and Chapter 8.10 Tree Preservation        Item 8: Staff Report Pg. 3  Packet Pg. 124 of 263  *NOT YET APPROVED* Attachment A 3 0010_20240123_mv30 8.04.015 Authority of city. The city of Palo Alto shall have control of all public trees, shrubs, hedges, and plants now or hereafter in any street, park or public place within the city limits, and shall have the authority to plant, care for, remove, replace, and maintain such trees, shrubs, hedges, and plants. 8.04.020 Permit required for certain work. Unless authorized by a tree permit or other city approval, no person shall do any of the following: (a) Plant, prune, trim, shape, remove, top, or in any way damage, destroy, injure or mutilate a public tree, shrub, hedge, or plant. A tree permit is not required for a property owner, resident, or their agent to maintain shrubs, hedges, or plants located within the city right-of- way associated with their property. (b) Fasten a sign, wire, or injurious material to any public tree, shrub, hedge, or plant. (c) Excavate any ditch or tunnel; or place concrete or other pavement within a distance of ten feet of the center of the trunk of any public tree. 8.04.030 Application for permit. Any person desiring to do any of the work described in Section 8.04.020 may apply for a tree permit so to do. The applicant shall state the nature of the work and the location where it will be done. 8.04.040 Issuance of permit. A tree permit shall be issued authorizing work that meets all the following conditions: (a) Will not create, continue, or aggravate any hazardous condition, or public nuisance. (b) Will not prevent or interfere with the growth, location or planting of any approved public tree. (c) Is consistent with the planting plan being followed by the city. 8.04.050 Public nuisances*. Any of the following are, for the purposes hereof, defined to be public nuisances: (a) Any dead, diseased, infested, or dying tree, shrub, hedge, or plant in any street or on any public or private property so near to any public tree, shrub, hedge, or plant as to constitute a danger to a public tree, shrub, hedge, or plant, or street, or portion thereof or public property. (b) Any tree, shrub, hedge, or plant on any private property or in any street, of a type or species that will destroy, impair, or otherwise interfere with any street improvement, sidewalk, curb, approved public tree, gutter, sewer, other public improvement, including utility mains and services, or a public tree, shrub, hedge, or plant. Item 8 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 Street Trees Shrubs and Plants and Chapter 8.10 Tree Preservation        Item 8: Staff Report Pg. 4  Packet Pg. 125 of 263  *NOT YET APPROVED* Attachment A 4 0010_20240123_mv30 (c) Any tree limb, shrub, hedge, or plant reaching a height more than three feet above the curb grade adjacent thereto, except a tree trunk having no limbs lower than nine feet above curb grade, within the thirty-five foot triangle of public or private property, measured from the projected curb lines, at the intersections of any street improved for vehicular traffic where either traffic signals, stop signs, or yield signs are not installed, or at any intersections which are determined by the chief transportation official to contain a tree limb, shrub, hedge, or plant that obscures or impairs the view of a passing motorist, cyclist or pedestrian so as to create a safety hazard. (d) Vines or climbing plants growing into or over any public tree, shrub, hedge, or plant; or any public hydrant, pole or electrolier. (e) Existence of any tree within the city limits that is infested or infected with objectionable insects, scale, fungus, or growths that are included in the California Department of Food and Agriculture’s detection and eradication programs or that are growth injurious to trees. (f) The existence of any branches or foliage which interfere with visibility on, free use of, access to, or obstruct public vehicular or pedestrian travel on any portion of any street improved for vehicular or pedestrian travel. (g) Hedges or dense, thorny shrubs and plants on any street or part thereof. (h) Shrubs and plants more than two feet in height in any tree well or planting strip between the sidewalk and curb, measured above top of curb grade. (i) Any tree, shrub, hedge, or plant declared a public nuisance pursuant to state law and ordered removed by a court of competent jurisdiction. * Abatement procedure - See Chapter 9.56 of this code. 8.04.070 Enforcement. (a) Violation of any provision of this chapter is a misdemeanor, punishable as provided in this code. Each day of violation constitutes a separate offense and may be separately punished. (b) Persons employed in the following designated employee positions are authorized to exercise the authority provided in California Penal Code Section 836.5 and are authorized to issue citations for violations of this chapter, including but not limited to leveling fines under the city's administrative penalty authority: assistant director of public works public services division, urban forester, project manager in the urban forestry section, landscape architect, and code enforcement officer. (c) Any person who damages a public tree, through any act or omission, whenever such act or omission is prohibited by or not authorized pursuant to this chapter, may be liable civilly in a sum not to exceed ten thousand dollars per tree, or the reproduction cost of each such tree, whichever amount is higher. Item 8 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 Street Trees Shrubs and Plants and Chapter 8.10 Tree Preservation        Item 8: Staff Report Pg. 5  Packet Pg. 126 of 263  *NOT YET APPROVED* Attachment A 5 0010_20240123_mv30 (d) Injunctive relief. A civil action may be commenced to abate, enjoin, or otherwise compel the cessation of such violation. (e) Costs. In any civil action brought pursuant to this chapter in which the city prevails, the court shall award to the city all costs of investigation and preparation for trial, the costs of trial, reasonable expenses including overhead and administrative costs incurred in prosecuting the action, and reasonable attorney fees. (f) The remedies and penalties provided in this section are cumulative and not exclusive. 8.04.080 Interference with enforcement. No person shall interfere with or delay the authorized representatives of the city from the execution and enforcement of this chapter, except as provided by law. 8.04.090 Adoption of regulations. The city may adopt regulations prescribing standards of landscaping and planting of streets, parks and public places, therein. A copy of such regulations shall be available for public inspection upon request, and all work performed in streets, parks or public places shall be performed in accordance therewith. SECTION 2. Chapter 8.10 (Tree and Landscape Preservation Management) of Title 8 (Trees and Vegetation) of the Palo Alto Municipal Code is hereby amended to read as follows (additions underlined and deletions struck through): Chapter 8.10 TREE AND LANDSCAPE PRESERVATION AND MANAGEMENT* Sections: 8.10.010 Purpose. 8.10.020 Definitions. 8.10.030 Tree and Landscape Technical Manual. 8.10.040 Disclosure of information regarding existing trees. 8.10.050 Removal of protected trees. 8.10.055 Tree replacement. 8.10.060 No limitation of authority under Titles 16 and 18. 8.10.070 Care of protected trees. 8.10.080 Development conditions. 8.10.090 Designation of heritage trees. Item 8 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 Street Trees Shrubs and Plants and Chapter 8.10 Tree Preservation        Item 8: Staff Report Pg. 6  Packet Pg. 127 of 263  *NOT YET APPROVED* Attachment A 6 0010_20240123_mv30 8.10.092 Tree removal in wildland- urban interface area. 8.10.095 Tree removal in Hospital District Zone. 8.10.100 Enforcement. 8.10.110 Remedies for violation. 8.10.120 Fees. 8.10.130 Severability. 8.10.140 Applications, notice, and appeals. 8.10.010 Purpose. The purpose of this chapter is to protect specified trees located on private property within the city, and establish standards for removal, maintenance, and planting of trees and landscaping. In establishing these procedures and standards, the city recognizes that trees and landscaping are an essential part of the city's infrastructure. Their benefits include promoting the health, safety, welfare, and quality of life of the residents of the city; addressing climate change by sequestering carbon and providing a cooling effect; reducing air, water, and noise pollution; preventing soil erosion and stormwater runoff; providing wildlife habitat; and enhancing the aesthetic environment. It is the city's intent to encourage both the preservation of trees and the proactive incorporation of trees and their benefits within development. 8.10.020 Definitions. For the purposes of this chapter, terms defined in Chapter 8.04 shall have the same meanings in this chapter, and the following terms shall have the meaning ascribed to them in this section: (a) "Basal flare" means that portion of a tree where there is a rapid increase in diameter at the confluence of the root crowntrunk and trunkrootcrown. (b) "Buildable area" means that area of a parcel: (1) Upon which, under applicable zoning regulations, a structure may be built without a variance, design enhancement exception, or home improvement exception; or (2) Necessary for construction of primary access to structures located on or to be constructed on the parcel, where there exists no feasible means of access which would avoid protected trees. On single-family residential parcels, the portion of the parcel deemed to be the buildable area for primary access shall not exceed ten feet in width. (c) "Building footprint" means the two-dimensional configuration of a building's perimeter boundaries as measured on a horizontal plane at ground level. Item 8 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 Street Trees Shrubs and Plants and Chapter 8.10 Tree Preservation        Item 8: Staff Report Pg. 7  Packet Pg. 128 of 263  *NOT YET APPROVED* Attachment A 7 0010_20240123_mv30 (d) "Designated arborist" means an arborist certified by the International Society of Arboriculture or another nationally recognized tree research, care, and preservation organization, selected by the urban forester for inclusion in a list of approved arborists to be: hired by: (1) Hired by anAn applicant at their own expense, or (2) Chosen by theThe city at an applicant's expense, if a project includes a public hearing. (e) "Development" means any work upon any property in the city which requires a subdivision, planned community zone, variance, use permit, building permit, demolition permit, or other city approval or which involves excavation, landscaping or construction within the tree protection zonedripline area of a protected tree or is subject to requirements of the California Model Water Efficient Landscape Ordinance (MWELO). (f) "Director of planning and development services" means the director of planning and development services or their designee. (g) "Director of public works" means the director of public works or their designee. (h) "Discretionary development approval" means planned community zone, subdivision, use permit, variance, home improvement exception, design enhancement exception, architectural review board approval, or any proposal or application that requires the discretion of the authorizing person or entity. (i) "Dripline area" means the area defined by the projection to the ground of the outer edge of the canopy or a circle with a radius ten times the diameter of the trunk as measured four and one-half feet (fifty-four inches) above natural grade, whichever is greater. (j) "Excessive pruning" of a protected tree means any of the following: (1) Removal of more than twenty-five percentone-fourth of the functioning leaf, stem, or root area of a tree in any twenty-four-month period. (2) Removal of more than fifteen percent of the functioning root area of any Quercus (oak) species in any thirty-six-month period. (3) Any removal of the functioning leaf, stem, or root area of a tree so as to cause a significant decline in health, increased risk of failure, or the unbalancing of a tree. (jk) "Hazardous" means an imminent hazard which constitutes a high or extreme threat to the safety of persons or property as defined by American National Standards Institute A300, Part 9. (kl) "Protected" tree means any of the following: (1) Any locally native tree of the species Acer macrophyllum (Bigleaf Maple), Calocedrus decurrens (California Incense Cedar), Quercus agrifolia (Coast Live Oak), Quercus douglasii (Blue Oak), Quercus kelloggii (California Black Oak), or Quercus lobata (Valley Oak) which is eleven Item 8 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 Street Trees Shrubs and Plants and Chapter 8.10 Tree Preservation        Item 8: Staff Report Pg. 8  Packet Pg. 129 of 263  *NOT YET APPROVED* Attachment A 8 0010_20240123_mv30 and one-half inches in diameter (thirty-six inches in circumference) or more when measured four and one-half feet (fifty-four inches) above natural grade. (2) Any Coast Redwood tree (species Sequoia sempervirens) that is eighteen inches in diameter (fifty-seven inches in circumference) or more when measured four and one-half feet (fifty-four inches) above natural grade. (3) Any tree, other larger than a Coast Redwood Tree, fifteen inches in diameter (forty-seven inches in circumference) or more when measured four and one-half feet (fifty-four inches) above natural grade of any species except those invasive species described as weeds in Section 8.08.010 and those species classified as high water users by the Water Use Classificationwater use classification of Landscape Speciesthe landscape species list (WUCOLS) approved by the California Department of Water Resources. (4) Any tree designated for protection during review and approval (with the exception of a current or previously completed development project. On parcels zoned other than single- family (R-1) or low density (RE, R-2, or RMD) residential, species exempted under subsection (3) of this Section may be designated as a protected tree.Coast Redwood). (4) Any tree designated for protection during review and approval of a development project. (5) Any tree designated for carbon sequestration and storage and/or environmental mitigation purposes as identified in an agreement between the property owner and a responsible government agency or recorded as a deed restriction. (6) Any heritage tree designated by the city council in accordance with the provisions of this chapter. (7) Any replacement mitigation tree or other tree designated to be planted due to the conditions listed in Section 8.10.055. (lm) "Protected tree removal permit" means a permit issued to allow a person to remove a protected tree. (m) “Right tree in the right place principles” means the set of principles that determine if a tree is located in an appropriate location for its specific species requirements and characteristics, in accordance with the factors listed in the Tree and Landscape Technical Manual. (n) "Remove" or "removal" means: (1) Complete removal, such as cutting to the ground or extraction, of a tree; or (2) Taking any action foreseeably leading to the death of a tree or permanent damage to its health; including but not limited to excessive pruning, cutting, topping, girdling, poisoning, overwatering, underwatering, unauthorized relocation or transportation of a tree, or trenching, excavating, altering the grade, or paving within the tree protection zonedripline area of a tree. Item 8 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 Street Trees Shrubs and Plants and Chapter 8.10 Tree Preservation        Item 8: Staff Report Pg. 9  Packet Pg. 130 of 263  *NOT YET APPROVED* Attachment A 9 0010_20240123_mv30 (o) “Retrenchment” means the process in which trees may reconfigure as they age and deteriorate, often continuing to grow in trunk diameter while branches die and fail. (p) "Tree Protection Zone" means the area defined by a circle with a radius ten times the diameter of the trunk when measured four and one-half feet (fifty-four inches) above natural grade. (q) "Tree Reportreport" means a report prepared by a designated arborist. (rp) "Tree and Landscape Technical Manual" means the regulations issued by the city manager to implement this chapter. 8.10.030 Tree and Landscape Technical Manual. The city manager, through the urban forestry section, and public works and planning and development services departments, shall issue regulations necessary for implementation and enforcement of this chapter, which shall be known as the Tree and Landscape Technical Manual. In the event of a conflict between the provisions of this Title 8 and the Tree and Landscape Technical Manual, this Title 8 shall prevail. The Tree and Landscape Technical Manual will be made readily available to the public and shall include, but need not be limited to, standards and specifications regarding the following: (a) Protection of trees during construction. (b) Replacement of trees allowed to be removed pursuant to this chapter where such replacements: (1) Prioritize the use of locally native species, as listed in Section 8.10.020(l)(1), consistent with Urban Forest Master Plan Goal 2: "Re-generated native woodland and riparian landscapes as the key ecological basis of the urban forest with focus on native species and habitat;" (2) Include climate adaptive, drought tolerant, non-native species as needed to satisfy right tree in the right place principles; and (3) Incorporate a secondary goal of net tree canopy increase on the property within fifteen years. (c) Maintenance of protected trees (including but not limited to pruning, irrigation, and protection from disease). (d) The format and content of tree reports required to be submitted to the city pursuant to this chapter. (e) The criteria for determining whether a tree is hazardous within the meaning of this chapter. (f) Landscape design, irrigation, and installation standards consistent with the city's water efficient landscape regulations. Item 8 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 Street Trees Shrubs and Plants and Chapter 8.10 Tree Preservation        Item 8: Staff Report Pg. 10  Packet Pg. 131 of 263  *NOT YET APPROVED* Attachment A 10 0010_20240123_mv30 8.10.040 Disclosure of information regarding existing trees. (a) Any application for development or demolition shall be accompanied by a statement by a designated arborist which discloses whether any protected trees exist on the property which is the subject of the application, and describing each such tree, its species, size, tree protection zonedripline area, and location. This requirement shall be met by including the information on plans submitted in connection with the application. (1) Notwithstanding subsection (a), applications involving only the development of an Accessory Dwelling Unit that conforms to Section 18.09.030, Table 1, require only a statement disclosing whether any protected trees are located on the property which is the subject of the application. This statement may be completed by the applicant. (b) In addition, the location and species of anyall other tree which is four inches in diameter (e.g., thirteen inches in circumference) or more when measured four and one-half feet (fifty- four inches) above natural grade shall be shown on the plans if the tree is: (1) On the property or trees on the property and in the adjacent public right-of-way, and is which are within thirty feet of the building footprint proposed for development, or (2) Locatedand trees located on adjacent property within thirty feet of the proposed building footprint, or (1)(3) Close enough that its canopy overhangswith canopies overhanging the project site, shall be shown on the plans, identified by species. (c) The director of public works or urban forester may require submittal of such other information as is necessary to further the purposes of this chapter including but not limited to photographs. (d) Disclosure of information regarding private protected trees pursuant to this section shall not be required when the development for which the approval or permit is sought does not involve any change in an existing building footprint nor any grading, trenching, paving, or any change in landscaping which could alter water availability to established plants, hedges, shrubs, or trees. (e) The urban forester or the designated arborist for a project shall add identified protected trees into the city's tree inventory database, and in coordination with the planning and development services departments, into city parcel reports. (f) Knowingly or negligently providing false or misleading information in response to this disclosure requirement shall constitute a violation of this chapter. 8.10.050 Removal of protected trees. It shall be a violation of this chapter for anyone to remove or cause to be removed a protected tree, except pursuant to a protected tree removal permit issued under Section 8.10.140 consistent with the following: Item 8 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 Street Trees Shrubs and Plants and Chapter 8.10 Tree Preservation        Item 8: Staff Report Pg. 11  Packet Pg. 132 of 263  *NOT YET APPROVED* Attachment A 11 0010_20240123_mv30 (a) In the absence of proposed development: (1) A protected tree shall not be removed unless the urban forester grants a protected tree removal permit, or on parcels zoned other than single-family (R-1) or low density residential (RE, R-2, or RMD), the director of planning and development services authorizes the removal through staff level architectural review pursuant to Section 18.76.020(b)(3), having determined, on the basis of a tree report prepared by a designated arborist and other relevant information, that treatments or corrective practices are not feasible, and that the tree should be removed because any of the following apply: (i) It is dead, is hazardous, or constitutes a public nuisance under Section 8.04.050 of this code. (ii) It is a detriment to or is crowding an adjacent protected tree. , or is impacting the foundation or eaves of a residence or any covered parking required under Title 18. (iii) It is at risk for retrenchment or other tree decline coping processes or does not conform with right tree in the right place principles. (iv) It is impacting the foundation or eaves of a residence, or any covered parking required under Title 18 of this code. (2) In the event a protected tree is removed pursuant to a protected tree removal permit granted under this subsection (a), a temporary moratorium on development of the subject property may be issued by the urban forester for up to twenty-four months or by, the director of planning and development services, in consultation with the urban forester, for up tomay issue a temporary moratorium on development of the subject property not to exceed thirty-six months, from the date the tree removal occurred. Completion of requiredFor any moratorium less than thirty-six months, the urban forester shall determine appropriate mitigation measures included infor the tree removal permit does not remove or shorten any such moratorium. A moratorium may be terminated early with approval of the urban forester or director of planning, and development services, as applicable, and may require additional mitigationensure measures. are incorporated into any future development approvals for the property. Mitigation measures included in the protected tree removal permit and any additional mitigation measures required to shorten a moratoriumas determined by the urban forester shall be imposed as a condition of any subsequent permits for development on the subject property. (b) In the case of any development on a single-family (R-1) or low density (RE, R-2, or RMD) residential zoned parcel, other than in connection with a subdivision, a protected tree shall not be removed unless determined by the urban forester, on the basis of a tree report prepared by a designated arborist and other relevant information, that any of the following apply: (1) The tree is so close to the proposed development that construction would result in the death of the tree, and there is no financially feasible design alternative that would permit preservation of the tree, where financially feasible means an alternative that preserves the tree unless retaining the tree would increase project cost by more than twice the reproduction cost of the tree or ten percent of the given project valuation, whichever is greater. Item 8 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 Street Trees Shrubs and Plants and Chapter 8.10 Tree Preservation        Item 8: Staff Report Pg. 12  Packet Pg. 133 of 263  *NOT YET APPROVED* Attachment A 12 0010_20240123_mv30 (2) Retention of one or more trees would result in reduction of the otherwise-permissible buildable area of the lot by more than twenty-five percent, and there is no financially feasible design alternative that would allow for preservation of the tree(s). For the purposes of this subsection (a)(2), a financially feasible design alternative means a design alternative that preserves the tree(s) and would not increase the project cost by more than twice the reproduction cost of the tree(s) or ten percent of the given project valuation, whichever is greater. All tree protection zones impacting buildable area are included in the reduction of buildable area calculation. (1)(3) The tree could be removed due to the conditions listed in Section 8.10.050(a)(1)(i), (ii) or (iii) (2) The tree could be removed due to the conditions listed in Section 8.10.050(a)(1) and treatments or corrective practices are not feasible. (c) In the case of development involving a proposed subdivision of land into two or more parcels, a protected tree shall not be removed unless determined by the urban forester, on the basis of a tree report prepared by a designated arborist and other relevant information, that either of the following apply: (1) Removal is unavoidable due to restricted access to the property or deemed necessary to repair a geologic hazard (landslide, repairs, etc.), in which case only the protected tree or trees necessary to allow access to the property or repair the geologic hazard may be removed. (2) The tree could be removed due to the conditions listed in subsection (a)(1)(i), (ii), or (iii) and treatments or corrective practices are not feasible. (d) In the case of development requiring planning approval under Title 18, and not included under subsections (b) or (c), a protected tree shall not be removed unless determined by the urban forester, on the basis of a tree report prepared by a designated arborist and other relevant information, that anyeither of the following apply: (1) Retention of one or more treesthe tree would result in reduction of the otherwise- permissible buildable area of the lot by more than twenty-five percent, and there is no financially feasible design alternative that would permit preservation of the tree(s),, where financially feasible means an alternative that preserves the tree(s) unless retaining the tree(s) would increase project cost by more than twice the reproduction cost of the tree or ten percent of the given project valuation, whichever is greater. All tree protection zones impacting buildable area are included in the reduction of buildable area calculation. (2) The tree should be removed because it is dead, hazardous, or constitutes a public nuisance under Section 8.04.050. In such cases, the tree protection zonedripline area of the removed tree, or an equivalent area on the site, shall be preserved for mitigation purposes from development of any structure. (3) Discretionary development review determines that the final project follows right tree in the right place principles and would result in a net tree canopy increase on the property within fifteen years, and replacement of trees, shrubs, and plants either: Item 8 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 Street Trees Shrubs and Plants and Chapter 8.10 Tree Preservation        Item 8: Staff Report Pg. 13  Packet Pg. 134 of 263  *NOT YET APPROVED* Attachment A 13 0010_20240123_mv30 (i) Is consistent with Urban Forest Master Plan Goal 2: "Re-generated native woodland and riparian landscapes as the key ecological basis of the urban forest with focus on native species and habitat," or (ii) Uses climate adaptive, drought tolerant species. (e) In any circumstance other than those described in subsections (a), (b), (c), or (d), a protected tree shall not be removed unless determined by the urban forester, on the basis of a tree report prepared by a designated arborist and other relevant information, that the tree is dead, is hazardous, or constitutes a public nuisance under Section 8.04.050. 8.10.055 Tree replacement. (a) In the event a protected tree is removed pursuant to Section 8.10.050(a)(1)(i), mitigation for the removed tree, replacement tree ratio, in lieu fees, or a combination thereof shall be determined by the urban forester, based on factors including but not limited to the species, size, location, and specific reason for removal of the protected tree, in accordance with the standards and specifications in the Tree and Landscape Technical Manual. (b) In the event a protected tree is removed pursuant to Section 8.10.050(a)(1)(ii), (iii) or (iv), (b), (c), (d), or (e), the tree removed shall be replaced in accordance with the standards and specifications in the Tree and Landscape Technical Manual, including but not limited to prioritization of locally native species, satisfaction of right tree in the right place principles, and incorporation of a secondary goal of net tree canopy increase on the property within fifteen years. The urban forester shall approve the number, species, size, and location of replacement trees. 8.10.060 No limitation of authority under Titles 16 and 18. Nothing in this chapter limits or modifies the existing authority of the city under Title 18 to require trees, shrubs, hedges, and other plants not covered by this chapter to be identified, retained, protected, and/or planted as conditions of the approval of development. In the event of conflict between provisions of this chapter and conditions of any permit or other approval granted pursuant to Title 16 or Title 18, the more protective requirements shall prevail. 8.10.070 Care of protected trees. (a) All owners of property containing protected trees shall follow the maintenance standards in the Tree and Landscape Technical Manual, including avoiding any action foreseeably leading to the death of a tree or permanent damage to its health; including but not limited to excessive pruning, cutting, topping, girdling, poisoning, overwatering, underwatering, unauthorized relocation or transportation of a tree, or trenching, excavating, altering the grade, or paving within the tree protection zonedripline area of a tree. (b) At least seven days prior to pruning a protected tree, other than that required to remove a dead, diseased, or broken branch or branches, the property owner or their designee shall prominently post a notice on the property, in one or more locations readily visible to the public, that includes standards for pruning and a description of the tree including tree species, size, Item 8 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 Street Trees Shrubs and Plants and Chapter 8.10 Tree Preservation        Item 8: Staff Report Pg. 14  Packet Pg. 135 of 263  *NOT YET APPROVED* Attachment A 14 0010_20240123_mv30 location, the date of work, and a contact phone number. The form for such notice will be available on the city's website as a printable document. Protected trees less than five years old are exempt from this provision. (c) Any requests to exceed the limits for pruning set forth in Section 8.10.020(i) shall be submitted to the urban forester by the property owner or their designee at least fourteen days prior to pruning a protected tree. Each request shall be accompanied by a statement explaining why exceedance of the limits is warranted. No pruning that exceeds the limits set forth in Section 8.10.020(i) shall take place without the approval of the urban forester. (cd) The standards for protection of trees during construction contained in the Tree and Landscape Technical Manual shall be followed during any development on property containing trees. (de) The urban forester shall add identified protected trees into the city's tree inventory database and, in coordination with the planning and development services departments, into city parcel reports. 8.10.080 Development conditions. (a) Development approvals for property containing protected public trees shall include appropriate conditions as set forth in the Tree and Landscape Technical Manual, providing for the protection of such trees during construction and for maintenance of such trees thereafter. Trees may be designated for protection that are significant visually or historically, provide screening, or are healthy and important to the nearby ecosystem. (b) It shall be a violation of this chapter for any property owner or agent of the owner to fail to comply with any development approval or building permit condition concerning preservation, protection, and maintenance of any tree, including but not limited to protected trees. 8.10.090 Designation of heritage trees. (a) Upon nomination by any person and with the written consent of the property owner(s), the city council may designate a tree or trees as a heritage tree. (b) A tree may be designated as a heritage tree upon a finding that it is of importance to the community due to any of the following factors: (1) It is an outstanding specimen of a desirable species. (2) It is one of the largest or oldest trees in Palo Alto. (3) It possesses distinctive form, size, age, location, and/or historical significance. (c) After council approval of a heritage tree designation, the city clerk shall notify the property owner(s) in writing. A listing of trees so designated, including the specific locations thereof, shall be kept by the departments of public works. Item 8 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 Street Trees Shrubs and Plants and Chapter 8.10 Tree Preservation        Item 8: Staff Report Pg. 15  Packet Pg. 136 of 263  *NOT YET APPROVED* Attachment A 15 0010_20240123_mv30 (d) Once designated, a heritage tree shall be considered protected and subject to the provisions of this chapter unless removed from the list of heritage trees by action of the city council. The city council may remove a tree from the list upon its own motion or upon written request by the property owner. Request for such action must originate in the same manner as nomination for heritage tree designation. 8.10.092 Tree removal in wildland-urban interface area. Tree removal and relocation in the wildland-urban interface (WUI) area, as defined in Section 15.04.190, shall be subject to the provisions in Chapter 15.04. To the extent Chapter 15.04 is inconsistent with this chapter, Chapter 15.04 shall control. 8.10.095 Tree removal in Hospital District Zone. Tree removal and relocation in the Hospital District (HD) shall be subject to the provisions in Section 18.36.070. To the extent Section 18.36.070 is inconsistent with this chapter, Section 18.36.070 shall control. 8.10.100 Enforcement. (a) Violation of this chapter is a misdemeanor, punishable as provided in this code. Each day of violation constitutes a separate offense and may be separately punished. (b) Persons employed in the following designated employee positions are authorized to exercise the authority provided in California Penal Code Section 836.5 and are authorized to issue citations for violations of this chapter, including but not limited to leveling fines under the city's administrative penalty authority: assistant director of public works public services division, urban forester, project manager in the urban forestry section, landscape architect, and code enforcement officer. 8.10.110 Remedies for violation. In addition to all other remedies set forth in this code or otherwise provided by law, the following remedies shall be available to the city for violation of this chapter: (a) Stop Work - Temporary Moratorium. (1) If a violation occurs in the absence of proposed development pursuant to Section 8.10.050(a)(1), or while an application for a building permit or discretionary development approval for the lot upon which the tree is located is pending, the director of planning and development services in consultation with the urban forester shall issue a temporary moratorium on development of the subject property, not to exceed five years from the date the violation occurred. The purpose of the moratorium is to provide the city an opportunity to study and determine appropriate mitigation measures for the tree removal, and to ensure measures are incorporated into any future development approvals for the property. Mitigation measures as determined by the urban forester shall be imposed as a condition of any subsequent permits for development on the subject property. Item 8 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 Street Trees Shrubs and Plants and Chapter 8.10 Tree Preservation        Item 8: Staff Report Pg. 16  Packet Pg. 137 of 263  *NOT YET APPROVED* Attachment A 16 0010_20240123_mv30 (2) If a violation occurs during development pursuant to Section 8.10.050(b), (c), (d), or (e), the city shall issue a stop work order suspending and prohibiting further activity on the property pursuant to the grading, demolition, and/or building permit(s) (including construction, inspection, and issuance of certificates of occupancy) until a mitigation plan has been filed with and approved by the director of planning and development services in consultation with the urban forester, agreed to in writing by the property owner(s), and either implemented or guaranteed by the posting of adequate security. The mitigation plan shall include measures for protection or repair of any remaining trees on the property, and shall provide for replacement of each tree removed on the property or at locations approved by the urban forester. The replacement ratio shall be in accordance with the standards set forth in the Tree and Landscape Technical Manual, and shall be at least twice the prescribed ratio required where tree removal is permitted pursuant to the provisions of this chapter. (b) Civil penalties. (1) As part of a civil action brought by the city, a court may assess against any person who commits, allows, or maintains a violation of any provision of this chapter a civil penalty in the following amount: (i) Ten thousand dollars per tree, or twice the reproduction cost of each tree, whichever amount is higher, for the complete removal of a tree, as defined in Section 8.10.020(n)(1). (ii) Ten thousand dollars per tree, or the reproduction cost of each tree, whichever amount is higher, for any of the actions set forth in Section 8.10.020(n)(2). (iii) Ten thousand dollars per tree, or twice the repair cost of each tree, whichever amount is higher, for damage to a tree protected or regulated by this chapter which can be rehabilitated. (2) Penalties shall be payable to the city. (3) Reproduction or repair cost for the purposes of this chapter shall be determined utilizing the most recent edition of the Guide for Plant Appraisal, published by the Council of Tree and Landscape Appraisers. (c) Administrative penalties. Persons listed in Section 8.10.100(b) may issue citations for violations of this chapter that level fines under the city's administrative penalty authority. (d) Injunctive relief. A civil action may be commenced to abate, enjoin, or otherwise compel the cessation of such violation. (e) Costs. In any civil action brought pursuant to this chapter in which the city prevails, the court shall award to the city all costs of investigation and preparation for trial, the costs of trial, reasonable expenses including overhead and administrative costs incurred in prosecuting the action, and reasonable attorney fees. (f) The remedies and penalties provided in this section are cumulative and not exclusive. Item 8 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 Street Trees Shrubs and Plants and Chapter 8.10 Tree Preservation        Item 8: Staff Report Pg. 17  Packet Pg. 138 of 263  *NOT YET APPROVED* Attachment A 17 0010_20240123_mv30 8.10.120 Fees. Tree reports required to be submitted to the city for review and evaluation pursuant to this chapter shall be accompanied by the fee prescribed therefor in the municipal fee schedule. 8.10.130 Severability. If any provision of this chapter or the application thereof to any person or circumstance is held to be invalid by a court of competent jurisdiction, such invalidity shall not affect any other provision of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable. 8.10.140 Applications, notice, and appeals. (a) Applications. (1) All applications for removal of a protected tree pursuant to Section 8.10.050 shall be filed in accordance with this section and any applicable provisions of Chapter 18.77. Applications for removal of protected trees on non-residential zoned properties will follow review guidelines set forth in Section 8.10.050(d) and Section 18.76.020 and will follow the process set forth in Section 18.77.070. (2) The application form shall be prescribed by the urban forester and shall contain a list of information that must be submitted in order for the application to be deemed complete. (3) Each application must be signed by all owners of the real property containing the protected tree, or an agent of the owner of record of the real property on which the protected tree occurs, when duly authorized by the owner in writing. (4) No application shall be deemed received until all fees for the application as set forth in the municipal fees schedule have been paid, and all documents specified as part of the application in this chapter or on the application form have been filed. (5) Protected tree removal permits shall automatically expire after twelve months, unless otherwise provided in the permit, from the date of issuance of the permit if within such twelve- month period, the proposed tree has not been removed. (b) Notice. (1) All applications for removal of a protected tree pursuant to Section 8.10.050 shall give notice in accordance with this section, the Tree and Landscape Technical Manual, and any applicable provisions of Chapter 18.77. (2) After submittal of an application to remove a protected tree, notice shall be given consistent with subsection (b)(4) and shall include the date of the proposed removal and the basis for the application. Item 8 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 Street Trees Shrubs and Plants and Chapter 8.10 Tree Preservation        Item 8: Staff Report Pg. 18  Packet Pg. 139 of 263  *NOT YET APPROVED* Attachment A 18 0010_20240123_mv30 (3) Upon determination of a protected tree removal application, notice shall be given consistent with subsection (b)(4) and shall include a description of the decision and how to appeal it. (4) Notices required pursuant to this section shall include the address of the property, a description of the protected tree, including species, size, and location, and urban forestry contact information, and shall be given as follows: (i) In writing to all owners and residents of property within 300 feet of the exterior boundary of the property containing the protected tree, and to all principal urban forestry partner organizations. (ii) By posting on the property, in one or more locations visible to the public. (iii) By posting on the city's website. (c) Appeals. (1) Any person applying to remove a protected tree in the absence of proposed development pursuant to Section 8.10.050(a), and any owner or resident of property within 600 feet of the exterior boundary of the property containing the protected tree, may request a public hearing by the director of public works to review the urban forester's decision, and may appeal the director of public works' determination to the city council. Any such request or appeal shall be filed with the public works department in a manner prescribed by the urban forester. (2) Any person applying to remove a protected tree pursuant to Section 8.10.050(b), (c), (d), or (e), and any owner or resident of property within 600 feet of the exterior boundary of the property containing the protected tree may request a hearing by appeal the director of planning and development services to review the decision. The request for a hearing shall be filed with the planning division in in a manner prescribed by the director of planning and development services. An appeal of the director of planning and development services determination shall be conducted in accordance with the procedures set forth in Chapter 18.78. (3) All appeals must be filed within fourteen days of posting of notice on the property pursuant to subsection (b)(4)(ii). SECTION 3. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. SECTION 4. The Council finds that this ordinance is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment. Alternatively, the ordinance is also exempt Item 8 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 Street Trees Shrubs and Plants and Chapter 8.10 Tree Preservation        Item 8: Staff Report Pg. 19  Packet Pg. 140 of 263  *NOT YET APPROVED* Attachment A 19 0010_20240123_mv30 under CEQA Guidelines Section 15308 because it involves regulatory action for the protection of the environment. SECTION 5. This ordinance shall be effective on the thirty-first day after the date of its adoption. However, this ordinance shall not apply to any projects that have submitted a complete application as of the ordinance’s effective date. In addition, until such time as a list of designated arborists is established by the Urban Forester, the term “designated arborist” shall mean any arborist certified by the International Society of Arboriculture or another nationally recognized tree research, care, and preservation organization. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Attorney City Manager ____________________________ Director of Public Works Item 8 Attachment A - Ordinance of the Council of the City of Palo Alto Amending Chapter 8.04 Street Trees Shrubs and Plants and Chapter 8.10 Tree Preservation        Item 8: Staff Report Pg. 20  Packet Pg. 141 of 263  City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: February 5, 2024 Report #: 2401-2540 TITLE SECOND READING: Adopt an Ordinance to Expand the Public Art Commission (PAC) from Five to Seven Members (FIRST READING: January 16, 2024 PASSED 7-0) BACKGROUND This was heard by the City Council on January 16, 2024 for a first reading and was approved 7-0. No changes were made to the ordinance; it is now before you for a second reading. ATTACHMENTS Attachment A - Ordinance Expanding the Public Art Commission from Five to Seven Members APPROVED BY: Mahealani Ah Yun, City Clerk Item 9 Item 9 Staff Report        Item 9: Staff Report Pg. 1  Packet Pg. 142 of 263  *Not Yet Approved* 1 102_20231220_ts24 Ordinance No._____ Ordinance of the Council of the City of Palo Alto Amending PAMC Section 2.18.010 to Expand the Public Art Commission from Five to Seven Members The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. The City Council finds and declares as follows: A. The City has a Public Art Commission as detailed in Chapter 2.18 of the Palo Alto Municipal Code. B. The City Council desires to expand the membership of the Public Art Commission from five to seven members. C. The two new seats created by this ordinance shall initially have two-year terms in order to stagger the introduction of new members as detailed in Section 3 of this ordinance. SECTION 2. Section 2.18.010 (Membership) of Chapter 2.18 (Public Art Commission) of the Palo Alto Municipal Code (PAMC) is hereby amended and restated as follows (deleted text is in strikethrough, new text is underlined): 2.18.010 Membership. There is created a public art commission composed of seven members who are not council members, officers, or employees of the city, and who shall be appointed by the city council. SECTION 3. The two new seats on the Public Art Commission created by this ordinance shall initially have shortened terms to expire on March 31, 2026, subject to extension under the provisions of PAMC 2.18.040 (Term of office). After that, successive terms shall be consistent with the term lengths in PAMC section 2.18.040 and any other applicable section of the PAMC. This Section 3 shall be uncodified. SECTION 4. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. SECTION 5. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Item 9 Attachment A - Ordinance Expanding the Public Art Commission from Five to Seven Members        Item 9: Staff Report Pg. 2  Packet Pg. 143 of 263  *Not Yet Approved* 2 102_20231220_ts24 Guidelines, because it can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment. SECTION 6. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Attorney City Manager ____________________________ Director, Community Services Department Item 9 Attachment A - Ordinance Expanding the Public Art Commission from Five to Seven Members        Item 9: Staff Report Pg. 3  Packet Pg. 144 of 263  City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: February 5, 2024 Report #:2401-2555 TITLE SECOND READING: Adoption of an Ordinance Amending Palo Alto Municipal Code Title 18 (Zoning) Chapters 18.14 (Housing Incentives), 18.76 (Permits and Approvals), and 18.77 (Processing of Permits and Approvals) to Implement Housing Element Program 1.3 Creating By‐Right Zoning Approval for Specific Housing Element Inventory Sites. CEQA Status: An Addendum to the City’s Comprehensive Plan Environmental Impact Report was Prepared for the 2023‐2031 Housing Element. (FIRST READING: January 22, 2024 PASSED 6-1, Kou no) BACKGROUND This was heard by the City Council on January 22, 2024 for a first reading and was approved 6-1 Kou no. No changes were made to the ordinance; it is now before you for a second reading. ATTACHMENTS Attachment A: Ordinance to Implement Housing Element Program 1.3 Creating By-Right Zoning Approval for Specific Housing Element Inventory Sites APPROVED BY: Mahealani Ah Yun, City Clerk Item 10 Item 10 Staff Report        Item 10: Staff Report Pg. 1  Packet Pg. 145 of 263  *NOT YET APPROVED* 1 0160133_20231221_ay16 Ordinance No. _____ Ordinance of the Council of the City of Palo Alto Amending Chapters 18.14 (Housing Incentives), 18.76 (Permits and Approvals), and 18.77 (Processing Permits and Approvals) of Title 18 (Zoning) of the Palo Alto Municipal Code to Implement Programs 1.3 of the City of Palo Alto 2023-2031 Housing Element The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and Declara�ons. (a)On May 8, 2023, the City Council adopted the City of Palo Alto 2023-2031 Housing Element (“Housing Element”) pursuant to Government Code Sec�on 65585. (b)In accordance with AB 1397 (2017), Program 1.3, Sites Used in Previous Housing Cycle, requires rezoning and a “by right” approval process for qualifying projects proposed on certain housing opportunity sites that were included as opportunity sites in prior housing elements. (c)Government Code Sec�on 65583.2, subdivision (c) and the Housing Element require that the City complete its implementa�on of Program 1.3 by January 31, 2024, which is one year from the statutory deadline for adop�on of the Housing Element. (d)Ordinance No. XXXX, adopted on December 11, 2023, accomplished the required rezoning for all sites subject to Program 1.3. (e)This ordinance implements the “by right” development process for sites subject to Program 1.3 and makes conforming changes to exis�ng provisions of Title 18. SECTION 2. Sec�on 18.14.050 (By Right Status of Qualifying Projects on Specified Housing Opportunity Sites) of Chapter 18.14 (Housing Incen�ves) of Title 18 (Zoning) of the Palo Alto Municipal Code is added to read as follows: 18.14.050 By Right Status of Qualifying Projects on Specified Housing Opportunity Sites (a)Mul�-family residen�al projects on housing opportunity sites shall be a “use by right,” subject to all of the following requirements: (1)The site is designated in Appendix D of the Housing Element to accommodate lower income households and it is either: Item 10 Attachment A - Ordinance to Implement Housing Element Program 1.3 Creating By-Right Zoning        Item 10: Staff Report Pg. 2  Packet Pg. 146 of 263  *NOT YET APPROVED* 2 0160133_20231221_ay16 (A)a nonvacant site included in one prior housing element; or (B)a vacant site that has been included in two or more consecu�ve, prior housing elements; (2)The site was not previously approved to develop a por�on of City’s regional housing need alloca�on; (3)The project restricts at least 20 percent of the units to rents or sales prices affordable to lower income households; and (4)The site has sufficient water, sewer, and other dry u�li�es available and accessible. (b)“use by right” shall have the same meaning as provided in Government Code Sec�on 65583.2, subdivision (i). (c)“lower income households” shall have the same meaning as provided in Health and Safety Code Sec�on 50079.5. (d)Qualifying projects shall be reviewed pursuant to Sec�on 18.77.074. SECTION 3. Sec�on 18.77.020 (Architectural Review) of Chapter 18.76 (Permits and Approvals) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (addi�ons underlined, dele�ons struck through, and omited text le� unchanged indicated by [. . .]): 18.76.020 Architectural Review (a)Purpose [. . .] (b)Applicability No permit required under Title 2, Title 12 or Title 16 shall be issued for a major or minor project, as set forth in this sec�on, unless an applica�on for architectural review is reviewed, acted upon, and approved or approved with condi�ons as set forth in Sec�on 18.77.070. (1)Exempt Projects. The following projects do not require architectural review: [. . .] Item 10 Attachment A - Ordinance to Implement Housing Element Program 1.3 Creating By-Right Zoning        Item 10: Staff Report Pg. 3  Packet Pg. 147 of 263  *NOT YET APPROVED* 3 0160133_20231221_ay16 (C)Housing development projects, as defined in Government Code Sec�on 65589.5(h)(2) (the Housing Accountability Act), but only to the extent if such projects qualify for ministerial review under Government Code sec�ons 65913.4 or 65951, or if they comply with all applicable objec�ve standards, in this code and the City’s discre�on is thereby qualify for streamlining under limited by Government Code sec�ons 65589.5, 65913.4, or 65905.5. Such projects shall be subject to the processes set forth in Sec�ons 18.77.073 or 18.77.074, as applicable. [. . .] SECTION 4. Sec�on 18.76.025 (Mul�-Family Residen�al Projects Exempt Architectural Review) of Chapter 18.76 (Permits and Approvals) of Title 18 (Zoning) of the Palo Alto Municipal Code is added to read as follows: 18.76.025 Mul�-Family Residen�al Projects Exempt from Architectural Review No permit required under Title 2, Title 12 or Title 16 shall be issued for a mul�-family residen�al project that is exempt from Architectural Review under Sec�on 18.76.020, subdivision (b)(1)(C), unless it first receives a planning approval from the Planning Director under this Sec�on. Projects subject to ministerial review or that are defined as a “use by right” under state law shall be reviewed under Sec�on 18.77.074. Projects that are not subject to ministerial review, but that comply with all applicable objec�ve standards, shall be reviewed under Sec�on 18.77.073. SECTION 5. Sec�on 18.77.073 (Streamlined Housing Development Project Review Process) of Chapter 18.77 (Processing of Permits and Approvals) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows (addi�ons underlined, dele�ons struck through, and omited text le� unchanged indicated by [. . .]): 18.77.073 Streamlined Housing Development Project Review Process (a) Applicability This sec�on shall apply to applica�ons for residen�al mixed-use and mul�family housing development projects, as defined in Government Code Sec�on 65589.5(h)(2), that comply with all applicable objec�ve standards in this code and for which the City’s discre�on is thereby qualify for streamlining under limited by Government Code sec�ons 65589.5, or 65905.5. [. . .] SECTION 6. Sec�on 18.77.074 (Ministerial and By Right Review Processes) of Chapter 18.77 (Processing of Permits and Approvals) of Title 18 (Zoning) of the Palo Alto Municipal Code is added to read as follows: Item 10 Attachment A - Ordinance to Implement Housing Element Program 1.3 Creating By-Right Zoning        Item 10: Staff Report Pg. 4  Packet Pg. 148 of 263  *NOT YET APPROVED* 4 0160133_20231221_ay16 18.77.074 Ministerial and By Right Review Process (a)Purpose and Applicability. This sec�on is intended to define a streamlined, ministerial review process for qualifying Housing Development Projects that are submited pursuant to streamlining provisions in AB 2162 (2018), AB 1397 (2017), and SB 35 (2017). This sec�on shall apply to mul�-family residen�al projects that are subject to ministerial review or defined as a “use by right” in state law, including, but not limited to, Government Code Sec�ons 65651, 65583, 65583.2, and 65913.4. This sec�on does not apply to the crea�on of an accessory dwelling unit and/or junior accessory dwelling unit. The review required by this sec�on shall not involve the exercise of discre�on in a manner that would cons�tute a “project” for purposes of the California Environmental Quality Act (CEQA). This sec�on does not, however, excuse a project involving a subdivision from compliance with Title 21 and the subdivision map processes set forth therein, which may result in a “project ” for purposes of CEQA. (b)Staff level review. Applica�ons under this sec�on shall be reviewed by City staff for compliance with applicable objec�ve standards in the City’s Comprehensive Plan, Specific Plans, Area Plans, Municipal Code, and other rules and regula�ons. A decision on the applica�on shall be made by the Planning Director within any �meframes dictated by applicable state law. (c)Public study session. Prior to preparing a writen decision, the Director may, in his or her sole discre�on, refer the applica�on to the Architectural Review Board or to other advisory boards or commissions for informal review. The recommenda�ons of such boards and commissions shall not be binding. (d)Public no�ces. No�ce of a public mee�ng to consider the applica�on shall be given at least seven days prior to the mee�ng by mailing to the applicant and all residents and owners of property within 600 feet of the project. No�ce shall include the address of the property, a brief descrip�on of the proposed project, and the date and �me of the hearing. SECTION 7. If any sec�on, subsec�on, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or uncons�tu�onal by a decision of any court of competent jurisdic�on, such decision shall not affect the validity of the remaining por�ons of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every sec�on, subsec�on, sentence, clause, or phrase not declared invalid or uncons�tu�onal without regard to whether any por�on of the ordinance would be subsequently declared invalid or uncons�tu�onal. Item 10 Attachment A - Ordinance to Implement Housing Element Program 1.3 Creating By-Right Zoning        Item 10: Staff Report Pg. 5  Packet Pg. 149 of 263  *NOT YET APPROVED* 5 0160133_20231221_ay16 SECTION 8. 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 poten�al environmental impacts of the 2023-2031 Housing Element. On May 8, 2023, the City Council adopted Resolu�on No. 10107, finding that the Addendum and the 2017 EIR adequately analyzed the environmental impacts of the Housing Element, including Program 1.3 of the Housing Element, which this ordinance implements. SECTION 9. This ordinance shall be effec�ve on the thirty-first date a�er the date of its adop�on. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Atorney City Manager ____________________________ Director of Planning and Development Services Item 10 Attachment A - Ordinance to Implement Housing Element Program 1.3 Creating By-Right Zoning        Item 10: Staff Report Pg. 6  Packet Pg. 150 of 263  City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: February 5, 2024 Report #:2401-2556 TITLE SECOND READING: Adoption of an Ordinance Authorizing the Improvements to the Palo Alto Baylands as Part of the Horizontal Levee Pilot Project and Approval of a Cooperative Agreement with the Association of Bay Area Governments to Construct the Horizontal Levee Pilot Project (WQ‐22001); CEQA – exempt under Section 15133 (FIRST READING: January 22, 2024 PASSED 7- 0) BACKGROUND This was heard by the City Council on January 22, 2024 for a first reading and was approved 7-0. No changes were made to the ordinance; it is now before you for a second reading. ATTACHMENTS Attachment A: Park Improvement Ordinance for Horizontal Levee Pilot Project Improvements APPROVED BY: Mahealani Ah Yun, City Clerk Item 11 Item 11 Staff Report        Item 11: Staff Report Pg. 1  Packet Pg. 151 of 263  *NOT YET APPROVED* ORDINANCE NO. _____ Ordinance of The Council of The City of Palo Alto Approving a Plan for Improvements to the Palo Alto Baylands as part of the Horizontal Levee Pilot Project The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings. The City Council finds and declares that: (a) Municipal Code (PAMC) require that, before any substantial building, construction, (b)The Horizontal Levee Pilot Project (Project) is part of the Marsh Front Trail (Trail). The Project site is located in the City’s Baylands, which is dedicated parkland (See PAMC § 22.08.020 et seq.) Based on the current habitat quality of the Project site, the location has been identified (c)The City of Palo Alto intends to authorize the construction of a horizontal levee pilot system that will enhance habitat, maintain public access, provide educational opportunities, (d)The Plan of improvements shall comprise, as follows: Embarcadero and Harbor Roads an underground treated wastewater pipeline for (2)The Project will require temporary rerouting of a portion of the Marsh Front Trail and temporary traffic restrictions to a portion of Harbor Road to accommodate 1 0004_20240124_ca29 Item 11 Attachment A - Park Improvement Ordinance for Horizontal Levee Pilot Project Improvements        Item 11: Staff Report Pg. 2  Packet Pg. 152 of 263  *NOT YET APPROVED* (e)The Project described above and as otherwise depicted in the attached exhibit is consistent with recreation and conservation purposes (f)The Council desires to approve the Plans for the Project described above and as depicted in Exhibit "A". SECTION 2. The Council hereby approves the Plan for construction of the Horizontal Levee Pilot Project as described in this Ordinance. SECTION 3. City of Palo Alto is the Lead Agency for the Project under the California Environmental Quality Act (CEQA) and finds that the Project is categorically exempt under CEQA Section 15333, Class 33 for small habitat restoration projects. SECTION 4. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: AYES: NOES: ABSENT: ________________________________________________________ APPROVED AS TO FORM:APPROVED: ________________________________________________________ ____________________________ 2 0004_20240124_ca29 Item 11 Attachment A - Park Improvement Ordinance for Horizontal Levee Pilot Project Improvements        Item 11: Staff Report Pg. 3  Packet Pg. 153 of 263  EXHIBIT A Palo Alto Harbor MarshPalo Alto Byxbee Project Boundary 0 650 1,300 Feet Palo Alto Horizontal Levee Pilot Project. D201801306 Figure 1SOURCE: USGS 7.5' Topographic Quadrangle (Mountain View, CA); ESA 2022 Project Location Item 11 Attachment A - Park Improvement Ordinance for Horizontal Levee Pilot Project Improvements        Item 11: Staff Report Pg. 4  Packet Pg. 154 of 263  EXHIBIT A Palo Alto Install pump in effluent H a r b o r Palo Alto 0 100 200 Byxbee ParkFeet Project Boundary Project Component Horizontal Levee Area Access Effluent Line in Equipment Staging Area Palo Alto Horizontal Levee Pilot Project. D201801306 Figure 2SOURCE: ESRI 2021; ESA 2022 Project Components Item 11 Attachment A - Park Improvement Ordinance for Horizontal Levee Pilot Project Improvements        Item 11: Staff Report Pg. 5  Packet Pg. 155 of 263  EXHIBIT A Harbor Marsh Palo Alto RWQCP Legend Project Boundary Major Contour 2' Minor Contour 0.5' Existing Overhead Power Lines Existing Renzel Marsh Intake k Riparian Bufferkkùù ù Riparian Scrub (Transition)Remove Existing Trail Preserve 18-Inch Renzel Marsh Seasonal Wet MeadowBrackish Marsh (Clear & Grub, Subsurface Treatment ZoneNew 18-Inch Culvert Freshwater Marsh Upland (Levee and Staging AreaNew 4-Inch Effluent Line Freshwater Swale Relocated Marsh Front Trail , , ,à 0 30 60ààFeet Palo Alto Horizontal Levee Pilot Project. D201801306 Figure 3SOURCE: ESRI 2021; ESA 2022 Draft Horizontal Levee Plan Item 11 Attachment A - Park Improvement Ordinance for Horizontal Levee Pilot Project Improvements        Item 11: Staff Report Pg. 6  Packet Pg. 156 of 263  EXHIBIT A 25 25 HARBOR ROAD HABITAT SLOPE ~68' TO 93' 30'12' BERMSWALE TREATMENT AREA 8'3' THICK HORIZONTAL LEVEETRAIL EL EXISTING GRADE, TYP APPROX. (E) EDGE32' THICK1 EL 10'EL 13'1 1 EL EL1129'8'MATCH GRADE111 2 1 ~15 1 ~10COARSE MATERIAL (NOTE 4) SAND FILTER (NOTE 3) OVER EXCAVATE & PLACE 1' LAYER OF COARSEBERM KEYWAY (N) FENCE, TYP 1' THICK SUBSURFACE NATIVE MATERIAL TREATMENT LAYER, TYP (NOTE 2) 0 00+00 0+50 1+00 1+50 2+00 2+26 STATION TYPICAL SECTION - RIDGES/HIGH & WIDEA PROFILE C L : 1" 10 H 25 25 HARBOR ROAD HABITAT SLOPE ~68' TO 93' 30'12'SWALE TREATMENT AREABERM 8' TRAIL 20 HORIZONTAL LEVEE APPROX. (E) EDGE EL 11.5' 3 TOP OF BANK2' THICK 1 EL 13'EL EL 9'1 1 1 1 CONFORM TO 2 15 1EXISTING GRADE, TYP 1 2011 1 FINE MATERIAL (NOTE 4)15 BASE SWALE/ BERM KEYWAY SAND FILTER (NOTE 3) (N) FENCE, TYP 1' THICK SUBSURFACE OVER EXCAVATE & PLACE 1' EFFLUENT LINE SEE MECHANICAL PLANS TREATMENT LAYER, TYP (NOTE 2)LAYER OF FINE NATIVE MATERIAL0 0 -2 -2 2+110+50 1+00 1+50 2+00 TYPICAL SECTION - SWALES & DEPRESSIONSB PROFILE NOTES 1. SEGREGATE FINE AND COARSE MATERIAL ENCOUNTERED DURING EXCAVATION OF SITE TO 4. COARSE AND FINE MATERIAL INCLUDES A BLEND OF NATIVE MATERIAL WITH COMPOSTED WOOD 5. FUTURE FLOOD CONTROL LEVEE MAY OR MAY NOT BE CONSTRUCTED, BUT THIS LAYOUT PLANS 2. SUBSURFACE TREATMENT LAYER COMPRISED OF A BLEND OF DRAIN ROCK AND COMPOSTED 6. ALL ELEVATIONS ARE ON NORTH AMERICAN VERTICAL DATUM 1988 (NAVD88). 3. SAND FILTER COMPRISED OF A BLEND OF SAND AND WOOD CHIPS. Palo Alto Horizontal Levee Pilot Project . D201801306 Figure 4 Draft Item 11 Attachment A - Park Improvement Ordinance for Horizontal Levee Pilot Project Improvements        Item 11: Staff Report Pg. 7  Packet Pg. 157 of 263  EXHIBIT A NEW TRAIL ~4.5' (VARIES)~0.5' SOIL CAP QUICK4 EQUALIZER 24 LOW FILTER FABRIC 1.5'± SOIL WITH DISTRIBUTION DISTRIBUTION BOX 1.0' TREATMENT LAYER 0.5' SAND AND WOOD CHIPS EFFLUENT SUPPLY LINE DRAIN ROCK & COMPOSTED WOOD CHIPS DISTRIBUTION CONNECTION AND TREATMENT ZONE MATERIAL 2 1 0 2 4 1"=2' SECTION SCALE: 1" = 2'SCALE FEET Palo Alto Horizontal Levee Pilot Project . D201801306 Figure 5 Draft Item 11 Attachment A - Park Improvement Ordinance for Horizontal Levee Pilot Project Improvements        Item 11: Staff Report Pg. 8  Packet Pg. 158 of 263  City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Administrative Services Meeting Date: February 5, 2024 Report #:2311-2231 TITLE Approval of Fiscal Year 2023 Palo Alto 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 Fiscal Year (FY) 2023 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 space is currently vacant. Item 12 Item 12 Staff Report        Item 12: Staff Report Pg. 1  Packet Pg. 159 of 263  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. ANALYSIS COPs Description Principal Outstanding (millions) Fiscal Year Debt will be Retired Item 12 Item 12 Staff Report        Item 12: Staff Report Pg. 2  Packet Pg. 160 of 263  Refinance and Golf Course) 2019 California Ave. Parking Garage $ 35.1 2049 2021 Public Safety Building $101.5 2051 Total COPs $144.7 Staff recommends that the Board of Directors of the Palo Alto Public Improvement Corporation (PIC) approve the FY 203 Annual Financial Report for the PIC. POLICY IMPLICATIONS Approval of the Palo Alto Public Improvement Corporation’s Annual Financial Report is consistent with prior Council policy direction and resolutions. 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 2023 Annual Financial Report APPROVED BY: Kiely Nose, Assistant City Manager Item 12 Item 12 Staff Report        Item 12: Staff Report Pg. 3  Packet Pg. 161 of 263  PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto, California) Annual Financial Report For the Year Ended June 30, 2023 Item 12 Attachment A - Palo Alto Public Improvement Corporation Fiscal Year 2023 Annual Financial Report        Item 12: Staff Report Pg. 4  Packet Pg. 162 of 263  PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto, California) Annual Financial Report For the Year Ended June 30, 2023 Table of Contents Page Independent Auditor’s Report ................................................................................................................... 1 Management’s Discussion and Analysis (Unaudited) .............................................................................. 3 Basic Financial Statements Government-wide Financial Statements: Statement of Net Position ................................................................................................................... 5 Statement of Activities ....................................................................................................................... 6 Debt Service Fund Financial Statements: Balance Sheet ..................................................................................................................................... 7 Statement of Revenues, Expenditures and Changes in Fund Balance ................................................ 8 Notes to the Basic Financial Statements .................................................................................................. 9 Item 12 Attachment A - Palo Alto Public Improvement Corporation Fiscal Year 2023 Annual Financial Report        Item 12: Staff Report Pg. 5  Packet Pg. 163 of 263  www.mgocpa.com Macias Gini & O’Connell LLP 2121 N. California Boulevard, Suite 750 Walnut Creek, CA 94596 1 Independent Auditor’s Report 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, 2023, 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, 2023, 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 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. Item 12 Attachment A - Palo Alto Public Improvement Corporation Fiscal Year 2023 Annual Financial Report        Item 12: Staff Report Pg. 6  Packet Pg. 164 of 263  2 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 9, 2023 Item 12 Attachment A - Palo Alto Public Improvement Corporation Fiscal Year 2023 Annual Financial Report        Item 12: Staff Report Pg. 7  Packet Pg. 165 of 263  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, 2023 3 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) Statement No. 34, Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local Governments. 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 Statement No. 34 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 are 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 are issued to fund the construction of the new public safety building. As of June 30, 2023, 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 $4.3 million for fiscal year 2023, a decrease of $0.5 million from the prior year. The decrease is mainly due to decrease of outstanding long-term debt. The interest on leases from the City of Palo Alto was $2.9 million, an increase of $1.2 million from the prior year. The increase is mainly due to the decrease in usage of cash and investments held by the Corporation for interest payments. The Corporation ended fiscal year 2023 with total assets of $155.8 million, a decrease of $3.0 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 $154.9 million of investment in leases to the City of Palo Alto. The total liabilities were $155.7 million, a decrease of $1.5 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, 2023, the Corporation reported a $0.1 million restricted net position. At the fund level, the Corporation’s expenditures exceeded revenues by $1.4 million due to interest payments of the 2021 COPs using cash and investments held by the Corporation. As of June 30, 2023, the Corporation had one fund, the Debt Service Fund, which reported a $0.1 million restricted fund balance. Item 12 Attachment A - Palo Alto Public Improvement Corporation Fiscal Year 2023 Annual Financial Report        Item 12: Staff Report Pg. 8  Packet Pg. 166 of 263  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, 2023 4 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 COPs 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, 2023, the Corporation has the following outstanding debt (excluding premium): 2018 COPs, 2019A and 2019B COPs, and 2021 COPs with outstanding principal balances of $8.2 million, $35.0 million and $101.5 million, respectively. ECONOMIC OUTLOOK AND MAJOR INITIATIVES The economy of the City and its major initiatives for the coming year are discussed in detail in the City’s Annual Comprehensive Financial Report. CONTACTING THE CORPORATION’S FINANCIAL MANAGEMENT These Basic Financial Statements are intended to provide citizens, taxpayers, investors, and creditors with a general overview of the Corporation’s finances. Questions about these financial statements should be directed to the Finance Department of the City of Palo Alto, 250 Hamilton Avenue, Palo Alto, CA 94301. Item 12 Attachment A - Palo Alto Public Improvement Corporation Fiscal Year 2023 Annual Financial Report        Item 12: Staff Report Pg. 9  Packet Pg. 167 of 263  Assets Cash held for operations 80,241$ Cash and investments held by trustee 5,110 Lease interest receivable 825,747 Investment in leases to the City of Palo Alto 154,892,268 Total assets 155,803,366 Liabilities Interest payable 825,747 Long-term debt: Due in one year 3,433,253 Due in more than one year 151,459,015 Total liabilities 155,718,015 Net Position Restricted for debt service 85,351$ PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto) Statement of Net Position June 30, 2023 See accompanying notes to financial statements. 5 Item 12 Attachment A - Palo Alto Public Improvement Corporation Fiscal Year 2023 Annual Financial Report        Item 12: Staff Report Pg. 10  Packet Pg. 168 of 263  Expenses Interest and fiscal agent charges 4,317,085$ Program revenues Interest on leases from the City of Palo Alto 2,853,990 Net program revenues (1,463,095) General revenues Investment earnings 16,276 Change in net position (1,446,819) Net position, beginning of the year 1,532,170 Net position, end of the year 85,351$ PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto) Statement of Activities For the Year Ended June 30, 2023 See accompanying notes to financial statements. 6 Item 12 Attachment A - Palo Alto Public Improvement Corporation Fiscal Year 2023 Annual Financial Report        Item 12: Staff Report Pg. 11  Packet Pg. 169 of 263  Assets Cash held for operations 80,241$ Cash and investments held by trustee 5,110 Lease interest receivable 825,747 Investment in leases to City of Palo Alto 154,892,268 Total assets 155,803,366$ Deferred Inflows of Resources Unavailable lease receipts from the City of Palo Alto 155,718,015$ Fund balance Restricted for debt service 85,351 Total deferred inflows of resources and fund balance 155,803,366$ Reconciliation of fund balance to net position Fund balance restricted for debt service 85,351$ Long-term receivables are not available to pay for current period expenditures and are considered unavailable on the governmental fund balance sheet 155,718,015 Some liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the Fund: Interest payable (825,747) Long-term debt due within one year (3,433,253) Long-term debt due in more than one year (151,459,015) Net position of governmental activities 85,351$ PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto) Balance Sheet June 30, 2023 Debt Service Fund See accompanying notes to financial statements. 7 Item 12 Attachment A - Palo Alto Public Improvement Corporation Fiscal Year 2023 Annual Financial Report        Item 12: Staff Report Pg. 12  Packet Pg. 170 of 263  Revenues: Lease receipts from the City of Palo Alto: Principal 860,000$ Interest 3,506,931 Othe 218 Investments earnings 16,276 Total revenues 4,383,425 Expenditures: Debt service: Principal repayment 860,000 Interest and fiscal agent charges 4,970,244 Total expenditures 5,830,244 Net change in fund balance (1,446,819) Fund balance, beginning of the year 1,532,170 Fund balance, end of the year 85,351$ Reconciliation of net change in fund balance to change in net position Net change in fund balance - debt service fund (1,446,819)$ 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. 860,000 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 244,907 Amortization of bond premium 408,252 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 (860,000) Lease receipt for interest payment (244,907) Impact of bond premium amortization on lease receipt (408,252) Change in net position of governmental activities (1,446,819)$ PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto) Statement of Revenues, Expenditures and Changes in Fund Balance For the Year Ended June 30, 2023 Debt Service Fund See accompanying notes to financial statements. 8 Item 12 Attachment A - Palo Alto Public Improvement Corporation Fiscal Year 2023 Annual Financial Report        Item 12: Staff Report Pg. 13  Packet Pg. 171 of 263  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, 2023 9 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, 2023. 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 12 Attachment A - Palo Alto Public Improvement Corporation Fiscal Year 2023 Annual Financial Report        Item 12: Staff Report Pg. 14  Packet Pg. 172 of 263  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, 2023 10 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, 2023, 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, 2023, 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 12 Attachment A - Palo Alto Public Improvement Corporation Fiscal Year 2023 Annual Financial Report        Item 12: Staff Report Pg. 15  Packet Pg. 173 of 263  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, 2023 11 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 5,110$ 22 days 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, 2023, the Corporation’s investments in money market mutual funds are rated AAAm by Standard & Poor’s. (b) 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. (c) 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. The Investment Policy is described in detail in the City’s Annual Comprehensive Financial Report. Item 12 Attachment A - Palo Alto Public Improvement Corporation Fiscal Year 2023 Annual Financial Report        Item 12: Staff Report Pg. 16  Packet Pg. 174 of 263  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, 2023 12 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 Maturity Minimum Credit Quality Maximum Percentage of Portfolio Maximum Investment in 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 10 years (*) AA/AA2 40% No Limit Supranational 5 years AA/AA2 20% 10% of the par value of ortfolio (A) (B) The lesser of $3 million or 10% of outstanding commercial paper of any one institution. (*) The maximum maturity is based on the Investment Policy that is approved by the City Council and is less restrictive than the California Governmental Code. Authorized Investment Type California State and Municipal and other 49 State Issued Bonds Callable and multi-step securities are limited to no more than 25% of the par value of the portfolio, provided that: 1) the potential call dates are known at the time of purchase, 2) the interest rates at which they "step- up" are known at the time of purchase, and 3) the entire face value of the security is redeemed at the call date.   Item 12 Attachment A - Palo Alto Public Improvement Corporation Fiscal Year 2023 Annual Financial Report        Item 12: Staff Report Pg. 17  Packet Pg. 175 of 263  PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto, California) Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 13 NOTE 4 – CERTIFICATES OF PARTICIPATION The Corporation’s long-term debt activities are presented below: Balance Balance Amount due July 1, 2022 Retirements June 30, 2023 in one year Certificates of Participation 2018 Capital Improvement Project 2.20-4.22%, due 11/1/2047 8,380,000$ 195,000$ 8,185,000$ 200,000$ 2019 California Ave. Parking Garage Series A & B 2.5%-5%, due 11/1/2048 35,720,000 665,000 35,055,000 690,000 2021 Public Safety Building 2%-5%, due 11/1/2050 101,505,000 - 101,505,000 2,135,000 Add: Unamortized Premium 10,555,520 408,252 10,147,268 408,253 Total 156,160,520$ 1,268,252$ 154,892,268$ 3,433,253$ 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 COPs 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 $101.5 million for the construction of the new public safety building. Principal payments are due annually on November 1 and interest payments semi-annually at various rates on May 1 and November 1. The 2021 COPs are secured by lease revenues received by the Corporation from any City’s General Fund revenue source. Item 12 Attachment A - Palo Alto Public Improvement Corporation Fiscal Year 2023 Annual Financial Report        Item 12: Staff Report Pg. 18  Packet Pg. 176 of 263  PALO ALTO PUBLIC IMPROVEMENT CORPORATION (A Component Unit of the City of Palo Alto, California) Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2023 14 NOTE 4 – CERTIFICATES OF PARTICIPATION (Continued) Future annual debt service on the outstanding debt is shown below: For the Year Ending June 30, Principal Interest Total 2024 3,025,000$ 4,880,641$ 7,905,641$ 2025 3,170,000 4,729,196 7,899,196 2026 3,335,000 4,569,845 7,904,845 2027 3,495,000 4,402,269 7,897,269 2027 3,675,000 4,226,077 7,901,077 2029-2033 21,250,000 18,233,120 39,483,120 2034-2038 25,660,000 13,783,387 39,443,387 2039-2043 29,775,000 9,618,640 39,393,640 2044-2048 34,540,000 4,801,870 39,341,870 2049-2051 16,820,000 545,216 17,365,216 144,745,000$ 69,790,261$ 214,535,261$ 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 12 Attachment A - Palo Alto Public Improvement Corporation Fiscal Year 2023 Annual Financial Report        Item 12: Staff Report Pg. 19  Packet Pg. 177 of 263  City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Manager Meeting Date: February 5, 2024 Report #:2312-2400 TITLE Policy and Services Committee Recommendations for Changes to the City Council Procedures and Protocols Handbook based on Prior City Council Referrals (Continued from December 18, 2023). CEQA Status - Not a Project. RECOMMENDATION The Policy and Services Committee recommends City Council action on the Procedures and Protocols Handbook (Handbook) referrals that the City Council sent to Policy and Services in spring 2023. Note: The City Council can act on as many or few of these as desired in this discussion. Any referral items not acted upon during this discussion will return to City Council at a later date. This item was continued from December 18, 2023. BACKGROUND The City Council discussed the City Council Procedures and Protocols Handbook on January 30 and March 20, 2023 and adopted the most recent version on April 24, 2023. At that time, the City Council referred a few discussion topics to the Policy and Services Committee. The Committee has discussed these referrals and made recommendations. The specific referrals from City Council are: 1. Procedures Section 1.1: Annual Organization of City Council 2. Procedures Section 5.1a(4): Video Participation for Public Comment 3. Procedures Section 8.2: Censure language was referred to committee for review 4. Protocols Section 2.2: Refrain from Lobbying Board and Commission Members 5. Protocols Section 2.8: The Role of Council Liaison to Boards or Commissions 6. Protocols Section 4: International Travel 7. Protocols Section 4.1: Miscellaneous Expenditures. Council referral for the committee to discuss the establishment of appropriate parameters for Council discretionary expenditures and whether to allocate $2,000 annually from the Council contingency fund for each Council member to decide its purpose. Item 13 Item 13 Staff Report        Item 13: Staff Report Pg. 1  Packet Pg. 178 of 263  The City Council began this discussion on December 18, 2023 and continued it to a future date. ANALYSIS Attachment B draft revised Handbook with short summaries below: Attachment A. Attachment A also includes options and details in addition to the research on other cities mayoral selection structures. Item 13 Item 13 Staff Report        Item 13: Staff Report Pg. 2  Packet Pg. 179 of 263  5. Protocols Section 2.8: The Role of Council Liaison to Boards or Commissions. a. Policy and Services Committee discussed this with Board/Commission Chairs on June 13, 2023 and unanimously recommended language for City Council consideration. This language is included on draft Handbook page 46. 6. Protocols Section 4: International Travel a. Policy and Services Committee discussed this referral in April 2023 and October 2023. The draft language is included on draft Handbook page 48. This was a 2-1 vote at committee. 7. Protocols Section 4.1: Miscellaneous Expenditures. Council referral for the committee to discuss the establishment of appropriate parameters for Council discretionary expenditures and whether to allocate $2,000 annually from the Council contingency fund for each Council member to decide its purpose. a. The Committee will discuss this referral in February and bring a recommendation to the City Council later in 2024. FISCAL/RESOURCE IMPACT The international travel policy would have a budget impact of up to $40,000 with CPI as recommended by the Policy and Services Committee. This amount would be included as a budget item for the FY 2025 budget if approved by the full City Council. The Committee recommended this as new funding separate from the ’City Council Travel, Meetings, In person Conferences, and Events’ budget of $35,000 (FY 2024 amount) and separate from the ’City Council Contingency’ budget annual appropriation of $125,000. As currently recommended by the Policy and Services Committee, the proposed $40,000 would be in addition to these existing allocations in future fiscal years. If the full City Council agrees to the $40,000 (plus annual inflation adjustment), the City Council could confirm this as new funding as recommended by the Committee or could choose to be budget neutral with a realignment of the existing appropriated funds for next fiscal year. ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by the California Environmental Quality Act (CEQA) because revisions to the City Council Procedures and Protocols is a continuing administrative or maintenance activity. CEQA Guidelines section 15378(b)(2). ATTACHMENTS Attachment A: Information about Mayoral Selection Processes (including comparison of other Cities) Attachment B: Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023 APPROVED BY: Ed Shikada, City Manager Item 13 Item 13 Staff Report        Item 13: Staff Report Pg. 3  Packet Pg. 180 of 263  Attachment A: Information about Mayoral Selection Processes (including comparison of other Cities) January 2023 The Policy and Services Committee discussed this topic on May 9, 2023 with research provided on other cities and requested staff to bring this to City Council in the 4th quarter of 2023 for City Council to evaluate whether a ballot measure should be placed before the voters in 2024 to either extend the Mayoral term or to directly elect the Mayor. Since the December 2023 City Council brief discussion on these referrals, staff combined all the relevant materials related to this referral and included them here in this Attachment A which also includes options and details in addition to the research on other cities mayoral selection structures. Analysis The Palo Alto Charter addresses the selection and duties of the Mayor and Vice-Mayor as follows: Section 8. Mayor - Election - Duties. The Council shall, at its first meeting in January, elect one of its number as its presiding officer, who shall have the title of mayor, and one of its number to be vice-mayor, who shall serve for one year after their election, and until their successors are elected and qualified. The mayor and vice-mayor shall serve until election and qualification of their successors. The mayor shall preside at all meetings of the council, shall sign all official documents when the signature of the council or mayor is required by law, and shall act as official head of the city on public or ceremonial occasions. The mayor shall not have any regular administrative duties but may act as ex officio member of all boards, commissions, and committees. The mayor shall vote as other members of the Council, but shall have no power of veto. The mayor shall have the power to administer the oaths and affirmations. The mayor shall perform such other duties as from time to time are assigned by the council. When the mayor is absent from any meeting of the council or incapable of performing his or her duties, the vice-mayor shall, during such time, have the full powers of the mayor. A vacancy in the positions of mayor or vice-mayor shall be filled by the council for the unexpired term. Under Section 8, Council is required each January to select a Council Member to serve as Mayor and one as Vice-Mayor. The only qualification is serving as a Council Member; in all other respects, the choice of who to select is left to the discretion of Council. Several suggestions have been made for adding criteria or changing the way the Mayor or Vice-Mayor is selected, including (a) instituting a rotation based on number of votes received, and (b) lengthening the term of service to two years. In general, there are two potential approaches to making these changes: 1. Amend the Charter. This requires a vote of the people. Specifically, the process involves the following steps. First, the Council deliberates and determines the changes it would like to make to the criteria or procedures for selecting the Mayor and Vice-Mayor. Second, staff returns to Council for approval of ballot materials, including the text of the proposed Charter amendment, a ballot question that conforms to state law, and a resolution placing the measure on the 2024 Item 13 Attachment A - Information about Mayoral Selection Processes (including comparison of other Cities)        Item 13: Staff Report Pg. 4  Packet Pg. 181 of 263  ballot. These materials are due to the County Registrar no later than August 9, 2024 1. Typically, Council completes its work on ballot measures before beginning its summer break in June. A Charter amendment is adopted if supported by a simple majority of voters (at least 50% plus 1) in the election. The amendment would be effective January 1, 2025, and would be binding on all future Councils. 2. Alternatively, Council could add criteria or considerations as a matter of policy. For example, under the current Charter provision, Council could decide that it will choose the Mayor based on who received the most voter support, or, could choose the same Council Member who served the prior year, making for a two-year term of service. This could be done on a year-by-year basis, or could be reflected in a policy statement (for example, in the Procedures and Protocols Handbook). This method, however, would not be binding on future Councils. Each January, the sitting Council could consider the policy but would be free under the Charter to make whatever choice a majority prefers from amongst sitting Council Members. Committee Minutes The action meeting minutes of the May 9, 2023 Policy and Services (P&S) Committee are shown below. The summary minutes provide additional context of the P&S Committee discussion regarding the Annual Reorganization of the City Council (specifically regarding the selection of the Mayor). The screenshot below is the Committee‘s action and the Committee’s Summary Minutes are at the very end of this Attachment memo. Action Minutes from Policy and Services Committee (May 9, 2023): 1 Santa Clara County, Registrar of Voters Election Calendar 2024 https://files.santaclaracounty.gov/migrated/November%205%2C%202024%20Presidential%20General%20Election %20Calendar%20v2.pdf Item 13 Attachment A - Information about Mayoral Selection Processes (including comparison of other Cities)        Item 13: Staff Report Pg. 5  Packet Pg. 182 of 263  Research on Other Cities: The charts below show the mayoral term by city in Santa Clara County and San Mateo County as reference material. The information collected is as of May 2023. Santa Clara County cities: Campbell 1 year Council Members Per Campbell City Clerk. Cuper�no 1 year Council Members Cuper�no Rules and Regula�ons for Candidates Gilroy 4 years Municipal Elec�on City website: Elec�ons & Voter Informa�on Gilroy Charter; Ar�cle IV Sec�on 402 Gilroy Charter; Ar�cle IV Sec�on 40 Members eligible. If there is at least one who has not yet served as mayor but has 23 months, they are eligible before one who has already served. Los Altos Norms and Procedures Sec�on 2.2 Town Council Code Chapter 2 Sec�on 2.20.035 Elec�on City Council Handbook Chapter II Sec�on B Elec�on City Charter Article III Section 8 Palo Alto Muni Code 2.04.060 Elec�on City Charter Ar�cle IV Elec�on Resolu�on 10 Elec�on City Charter Ar�cle IV Sec�on 604 Item 13 Attachment A - Information about Mayoral Selection Processes (including comparison of other Cities)        Item 13: Staff Report Pg. 6  Packet Pg. 183 of 263  San Mateo County cities: Atherton 1 year Council Members Atherton Municipal Code 2.04.030 Belmont 1 year Council Members Belmont Elec�on- Mayor Term Resolu�on 2022-027 Brisbane 1 year Council Members City of Brisbane- Elec�on Informa�on Resolu�on 2016-06 Burlingame 1 year Council Members City Council Mee�ng Decorum Resolu�on 117-1999 Town of Colma 1 year Council Members Town of Colma 1.02.030 Daly City 1 year Council Members Daily City Code of Ordinances 2.04.015 East Palo Alto 1 year Council Members City of East Palo Alto- 2.04.030 Foster City 1 year Council Members Foster City Municipal Code 2.08.180 Half Moon Bay 4 years Municipal Elec�on Half Moon Bay Municipal Code 1.24.090 Hillsboro 1 year Council Members CIty of Hillsborough 2.04.030 Menlo Park 1 year Council Members City of Menlo Park Municipal Code 2.04.120 Millbrae 1 year Council Members City Council Protocol - Sec�on 8- Mayor and VIce Mayor Pacifica 1 year Council Members City of Pacifica- City Council Informa�on Portola Valley Response pending Redwood City 2 years Council Members Redwood City, City Charter Sec�on 14 San Bruno 3 years Municipal Elec�on City of San Bruno Municipal Code 2.32.101 (C) San Carlos 1 year Council Members City of San Carlos- Code of Conduct & Ethics Policy City of San Carlos- Elec�ons San Mateo 1 year Council Members City of San Mateo City Charter 2.02 South San Francisco 1 year Council Members City of South San Francisco- City Council Woodside 1 year Council Members Commitee Handbook; Page 12 Item 13 Attachment A - Information about Mayoral Selection Processes (including comparison of other Cities)        Item 13: Staff Report Pg. 7  Packet Pg. 184 of 263  POLICY AND SERVICES COMMITTEE SUMMARY MINUTES Page 1 of 9 Special Meeting May 9, 2023 The Policy and Services Committee of the City of Palo Alto met on this date in the Community Meeting Room and by virtual teleconference at 7:00 P.M. Present In Person: Tanaka (Chair), Lauing, Veenker Present Remotely: Absent: None. Call to Order Chair Tanaka Agenda Items 1. Race and Equity Quarterly Update Deputy City Manager Chantal Cotton-Gaines offered an update on the City’s recent race and equity work. In 2020, the City Council adopted a framework as well as putting together about four ad-hoc committees on the topic of race and equity. A few were related to policing specifically and one around city-wide diversity and inclusion. Through those ad-hoc committees of the City Council, the Council came up with some recommendations and took action in November 2020 with 17 assignments for staff and City Council. Of the 17 assignments, 15 had been completed and progress continued on the last 2 items. She presented slides outlining the descriptions, functions and progress of the 17 assignments. Council Member Lauing commented that losing a staff member was an emergency in this system if there is no backup. He asked how quickly that should be moved on and if the County does it all. Deputy City Manager Cotton-Gaines answered that this program is in partnership with Santa Clara County. The clinician is an employee of the County. The benefit of having it as a County employee is that it gives them access to some of their mental health systems and other programs that the City would not have access to if the clinician was hired directly. She stated that they have hire urgency to get the person on board and they are sharing that with the County. The funding question has come up from Santa Clara County. This program was funded Item 13 Attachment A - Information about Mayoral Selection Processes (including comparison of other Cities)        Item 13: Staff Report Pg. 8  Packet Pg. 185 of 263  SUMMARY MINUTES Page 2 of 9 Sp. Policy & Services Meeting Summary Minutes: 05/09/2023 by a special grant from the state and expires at the end of June. The County wanted to know if Palo Alto would have ongoing funding to continue funding a clinician beyond June. Police Chief Binder added that since they knew the clinician was leaving, work has been underway to replace her. He met with the Finance Committee the previous Friday and they spoke about SUMC money for funding the two PERT officers. He expressed his confidence that they would be underway in recruiting and hiring the clinicians in partnership with Behavioral Health Services in the coming months. Council Member Lauing inquired if the Committee would be participating in the interview of these people. Police Chief Binder answered that they did participate in the interview of the former clinician and will continue to do so. Council Member Lauing asked if there was feedback about the reason the former clinician left. Police Chief Binder stated there an exit interview and the former clinician said good things about her experience with PAPD. She gave good feedback moving forward that had been incorporated into the process for the two future Behavioral Health Services clinicians. Council Member Veenker inquired why funding was not already in place if the position already existed as a County employee. Police Chief Binder countered Chief Dennis Burns volunteered the Palo Alto PD years ago to be part of the PERT pilot program with Behavioral Health Services on a grant. The PERT clinician was part of the grant. The grant funding will come to an end the following month. There is question about whether the County will be reupping it. The prior week it was learned that the County may be incorporating some money into their budget for PERT. He desired to keep the ball moving forward to get the clinician whether it was through funds they have or the County. He added that the pilot program had one PERT officer and the current goal is to hire two in order to have coverage seven days a week. Council Member Lauing asked if the recruitment and hiring report was the only one done since June 2021. Deputy City Manager Cotton-Gaines answered the contract itself was the action from June 2021. Police Chief Binder answered last IPA report was late this spring but the hope was to get it out in the coming weeks. It will be OIR’s report covering the second half of 2022. The PD’s report on recommendation responses to the IPA’s recommendation and the Use of Force biannual report will cover that and will cover the Use of Force from the second half of 2022. The hope is to have it out before the IPA comes in front of the Council on June 12. Item 13 Attachment A - Information about Mayoral Selection Processes (including comparison of other Cities)        Item 13: Staff Report Pg. 9  Packet Pg. 186 of 263  SUMMARY MINUTES Page 3 of 9 Sp. Policy & Services Meeting Summary Minutes: 05/09/2023 Council Member Veenker questioned the goal, intended audience and intended impact of the CEDAW project. Deputy City Manager Cotton-Gaines answered that it is being drafted by the Staff and the draft would be brought to the Council. City Attorney Molly Stump stated there have been different ways jurisdictions have signed onto, amplified and promoted the UN Convention. It is the convention on the elimination of all forms of discrimination against women. Palo Alto has a first level of endorsement of the principles of CEDAW, which was adopted by resolution a number of years ago stating their support and endorsement of these ideas and principles. There is desire in the community to take an additional step to provide more structure and more focus around the CEDAW efforts. Large major metropolitan areas have similar structured programs and have staff in city departments. That is not what is contemplated here. Council Member Veenker asked if the IPA oversight was intended to be a one-time thing. Deputy City Manager Cotton-Gaines answered that at the time of the recommendation, the IPA did not receive those type of cases. The City Council recommended that this committee evaluate whether to make that recommendation to the full Council and work with IPA to see what was possible so it was decided to include that in the contract scope. Council Member Veenker wanted information about Ivy. Deputy City Manager Cotton-Gaines answered that Ivy had worked with more private the public entities. Their approach is that everyone is trying to progress forward and make more inclusive and understanding working environments and how to infuse equity into the work done. They have worked with large corporate agencies and state agencies, not many cities. They anticipate finishing the focus groups before the end of June then will spend some of summer doing additional analytical work. They are also doing a document review so they have shared some of their recruitment and procurement documents. They are trying to see what information they have from communication standpoint and applying that equity lens to it. The work does not include the commissions. They have a senior management analyst they are starting recruitment for so will have another staff person helping to carry things forward. They are doing some work related to Boards and Commissions and have done a microaggression and implicit bias training at the end of last year and are expanding that contract with CircleUp Education to make that available for new Commission members and anybody else on staff who wants to participate in it. Public Comment: Winter Dellenbach urged everyone to look at the RIPA data when it was available. She felt there needed to be a way to advertise the TRUST program. Item 13 Attachment A - Information about Mayoral Selection Processes (including comparison of other Cities)        Item 13: Staff Report Pg. 10  Packet Pg. 187 of 263  SUMMARY MINUTES Page 4 of 9 Sp. Policy & Services Meeting Summary Minutes: 05/09/2023 Deputy City Manager Cotton-Gaines referenced the Human Relations Commission’s role in the City’s work on policy changes for the Police Department. For AANHPI month, they are working on a referral that came from the Council about gaining insight on the lived experience of Asian Americans, Native Hawaiians and Pacific Islanders in Palo Alto. She asked the Committee to share the link provided in the staff report. Council Member Tanaka inquired if there were any issues found through this work the Committee should know about. Deputy City Manager Cotton-Gaines answered there had been a lot of interest in this conversation. They have to continue the idea of making sure everyone feels included and their policies and organization are moving in a direction to continue to advance that. Council Member Tanaka questioned where hate crimes were tracked and the data kept. Police Chief Binder answered hate crime data that they are allowed to publicly post is available on the Palo Alto PD page. He stated it is managed on a regular basis. Council Member Tanaka asked for the website to be sent to the Committee to be viewed. Deputy City Manager Cotton-Gaines provided that there was a semiannual CIP update report for information on the delays. NO ACTION TAKEN 2. Approval of the following changes to scope, compensation, and/or time: 2A. Approval of Office of City Auditor Task Order Change - 4.20 Procurement City Auditor Adriane McCoy explained the Procurement Task Order presented to the P&S Committee in February was approved in March by the full Council. There was discussion about expanding the scope of the procurement audit so they presented additional content to be included in the objectives. The Task Order requested a scope update based upon those requests as well as reassignment of budget to accommodate for the additional hours devoted to the audit and a timeline extension wherein the timeframe for the audit would commence on June 1 and carry them through to the end of December this year. Council Member Lauing questioned if budgeted items were being reallocated to cover the new items and if it was decided the things not being done that budget dollars were taken away from were no longer necessary, were under budget or what the plan was. Item 13 Attachment A - Information about Mayoral Selection Processes (including comparison of other Cities)        Item 13: Staff Report Pg. 11  Packet Pg. 188 of 263  SUMMARY MINUTES Page 5 of 9 Sp. Policy & Services Meeting Summary Minutes: 05/09/2023 City Auditor Adriane McCoy answered that it was simply a reallocation to accommodate for the three Task Orders. She stated there would be no time left within this fiscal year to accommodate for the two audits that had been cancelled so the amounts designated to those to the three remaining Task Orders would be reallocated to the three remaining Task Orders. After the annual risk assessment is completed and the annual audit plan is composed, these two audits will be incorporated into the FY24 Annual Audit Plan. Council Member Tanaka stated they want to see at the end if the vendor performed as expected and inquired if there was anything in this audit around that. City Auditor Adriane McCoy answered performance could be incorporated into the process itself of selecting the vendors. That would assume that the sample of vendors selected have had time to perform and it would be evaluated in accordance with the terms of the contract to determine their performance was acceptable. MOTION: Council Member Veenker moved, seconded by Council Member Lauing to recommend City Council approve the change to the Task Order 4.20 Procurement Process Review. MOTION PASSED: 3-0 2B. Approval of Office of City Auditor Task Order Change - 4.08 Public Safety Building- Construction Audit City Auditor Adriane McCoy explained the Public Safety Building-Construction Audit consisted of conducting a monthly sample of construction activities. They learned that the construction project itself will extend beyond June 30. It has been anticipated to last until the end of December this year requiring the audit function to have time post end of year to complete its audit so this is a request for a timeline extension through March 2024 to continue conducting the monthly activities as well as a reassignment of budget from the same two audits as previously described. Council Member Tanaka asked if the audit would cover the topic of the cause of delays. City Auditor Adriane McCoy answered the topic of the cause of delays could be included in the ending report. MOTION: Council Member Lauing moved, seconded by Council Member Veenker to recommend City Council approve the change to the Task Order 4.08 Public Sector Building- Construction Audit. Item 13 Attachment A - Information about Mayoral Selection Processes (including comparison of other Cities)        Item 13: Staff Report Pg. 12  Packet Pg. 189 of 263  SUMMARY MINUTES Page 6 of 9 Sp. Policy & Services Meeting Summary Minutes: 05/09/2023 MOTION PASSED: 3-0 2C. Approval of Office of City Auditor Task Order Change - FY23-05 Various Reporting & City Hotline City Auditor Adriane McCoy outlined the Various City Hotline and Ongoing Office Administrative Functions. She stated this budget audit was in need of a reassignment of budget due to the time consumption in a variety of areas. With the idea of various reporting, the tasks included in this project code included project management, coordination of audit status meetings, reporting, billing, staffing being assigned to the various audits in the annual audit plan, audit plan status reporting, hotline responses and Committee and Council meetings as well as presentations. They were in need of additional hours to be devoted to this collection of activity and would like to reassign budget for that purpose for the remainder of FY23. Council Member Veenker asked for expansion on the reason Baker Tilly needed to spend more time on the City Hotline related activities. City Auditor Adriane McCoy stated the activities that needed extra time spent on were not limited to the hotline but were inclusive of all of the various activities. There were restarts related to the transition made at the end of summer. A number of audit reports, a number of Task Orders and project management related to billing activities had to be done and redone so the budget was not sufficient. She did not have a history on how they arrived at the number. When hours are charged to each individual audit, those hours devoted to the execution of the plan for the audit as well as to report out on that audit and follow up are not included in the individual audit budgets but in the administrative category. Council Member Veenker asked for a ballpark for how much additional percentage they were off. City Auditor Adriane McCoy answered they proposed to increase the amount of time to 621 hours for the year so this covered everything from July 1 to June 30 so the increase would be 100%. Council Member Veenker expressed confusion as to why they were off by 621 hours. City Auditor Adriane McCoy stated she was not present when the annual year amounts were allocated. The time spent making the presentations that need to be made, ensuring all billing for the variety of topics are accurate and complete and coordinating specialized staff has been more than what was originally anticipated with a $60,000 budget. Council Member Veenker asked if the need for the increase was because of the personnel change or if it was just additional work that was unanticipated. Item 13 Attachment A - Information about Mayoral Selection Processes (including comparison of other Cities)        Item 13: Staff Report Pg. 13  Packet Pg. 190 of 263  SUMMARY MINUTES Page 7 of 9 Sp. Policy & Services Meeting Summary Minutes: 05/09/2023 City Auditor Adriane McCoy answered it was additional work that absolutely needed to happen. She was not certain if it was anticipated accurately prior to her coming on. She added there are types of project management codes with every client they have and it is an undertaking to ensure all of those things are coordinated. MOTION: Chair Tanaka moved, seconded by Council Member Lauing to recommend City Council approve the change to the Task Order FY23-05 Various Reporting & City Hotline. MOTION PASSED: 3-0 3. City Council Referral to Discuss and Recommend Council Procedures and Protocols on: Annual Organization of City Council and other City Council referrals related to the City Council Procedures and Protocols Deputy City Manager Cotton-Gaines stated they have a list of referrals from the full City Council on the Procedures and Protocols Handbook. She stated they deferred to the Committee on how they would like to organize the discussion and the agenda they wanted to set. A background, basic report and a supplemental report were provided in the packet related to this topic. Chair Tanaka stated the focus is number one on the list. Council Member Veenker suggested that direction might be given to the Staff as to what order they want to go through the list. Council Member Lauing commented that it did not have to be decided on that night because it could be in Q4 or they could because the options were not going to change. Council Member Veenker stated the code they are considering amending is also in the charter, which they could not change without a vote of the public. She believed it had to be put on the ballot to be changed so they had to consider if the change was worth the time, expense and effort to do that. City Attorney Molly Stump confirmed that a change would require a vote of the people that would occur in November of an even-numbered year. Chair Tanaka asked what the Committee thought of a directly-elected mayor. Council Member Veenker believed there were pros and cons either way. She found it interesting that Sunnyvale had an interim period where they had a two-year directly-elected mayor but it was still a City Manager model. She stated in a lot of places, there are directly- elected four-year mayors. In Bloomington, Indiana, the mayor is in year eight having been elected directly to two four-year terms. She believed the two-year tenure could give continuity Item 13 Attachment A - Information about Mayoral Selection Processes (including comparison of other Cities)        Item 13: Staff Report Pg. 14  Packet Pg. 191 of 263  SUMMARY MINUTES Page 8 of 9 Sp. Policy & Services Meeting Summary Minutes: 05/09/2023 for relationships with other cities, regional bodies and national organizations. She was more interested in the continuity of two years than a directly-elected mayor and not interested in changing from the City Manager system. Council Member Lauing expressed he would like to do more research before voting on this in the voting machine. He believed there was appeal to having a directly-elected mayor. He advised staying with the city manager model. Chair Tanaka stated he had talked to some City Councils that had gone to directly elected mayor. He felt it provided continuity and increased accountability. He expressed interest in exploring the idea. Council Member Veenker noted that they could go to a two-year term for mayor without going to a directly-elected mayor to see how it could be done. She stated it is a lot of work to be mayor and being part-time and not paid very much, less people may be interested in doing it for two years. Chair Tanaka felt having a directly-elected mayor gave authority to the mayor. Council Member Lauing asked if sample sizes were available and if there were more four-year terms for directly-elected versus two years. Council Member Veenker answered she believed that was the case but she felt it would be interesting to ease into the two-year to see how it went. Chair Tanaka stated the motivation of going to a directly-elected mayor is that it is hard to get things done in a year, it that it gives authority to the voters and it provides continuity. He suggested asking for more data and asked for the Committee’s ideas about the next step. Council Member Lauing stated he felt they needed to pick one or two sometime this year and make a recommendation on that. His inclination was to stay with the status quo. He felt number one made sense. Council Member Veenker concurred with not going through the time and expense of a ballot measure if they were considering other mechanisms. She asked how Staff felt they might be able to explore that. She expressed interest in having more information and a conversation about whether they want a longer term for mayor and/or a directly-elected mayor and she assumed that would require changes in the City Charter and would go to voters. City Attorney Molly Stump answered that all of those changes would require a Charter amendment that would go on the ballot to be approved by voters in November of an even- numbered year the same time Council Members were standing for election. She felt it was a core governance issue and Staff could support with targeted research. She stated they did a survey of every city in San Mateo County and Santa Clara County and identified how the mayor was selected for baseline information about how the neighboring cities are doing this work. She Item 13 Attachment A - Information about Mayoral Selection Processes (including comparison of other Cities)        Item 13: Staff Report Pg. 15  Packet Pg. 192 of 263  SUMMARY MINUTES Page 9 of 9 Sp. Policy & Services Meeting Summary Minutes: 05/09/2023 believed the Committee should make a recommendation to Council to set the issue aside for now in light of many significant other priorities and revisit the issue in early 2024, 2026 or 2028. MOTION: Council Member Veenker moved, seconded by Chair Tanaka to request staff to bring this to City Council in the 4th quarter for City Council to evaluate whether a ballot measure should be placed before the voters to: 1. Extend the Mayoral term, and; 2. Directly elect the Mayor MOTION PASSED: 3-0 Chair Tanaka suggested creating a to-do list regarding Miscellaneous Expenditures to include what the legal boundaries are, a survey of what Mountain View, Sunnyvale, Menlo Park and Los Altos do and a history on the funding in order to discuss at the next meeting. Future Meetings and Agendas Deputy City Manager Cotton-Gaines noted that with the creation of the Housing Ad-Hoc Committee, some of the items that were planned for Policy and Services that are housing related can go to that ad-hoc committee so the Staff are reconciling what those are. One was related to the Rental Registry which was slated for June. She thought it was worth getting the Board and Commission members there next month because that item probably would not come to this Committee anymore. The Quarterly Audit Status Report is the other item as of that time. She needed to check with the City Auditor to see what her anticipated items were. Council Member Lauing mentioned garden equipment. Deputy City Manager Cotton-Gaines stated she would follow up with Staff on the timing for the garden equipment. Chair Tanaka asked for thoughts on streamlining the meetings to make them more efficient and smoother. Adjournment: The meeting was adjourned at 8:50 P.M. Item 13 Attachment A - Information about Mayoral Selection Processes (including comparison of other Cities)        Item 13: Staff Report Pg. 16  Packet Pg. 193 of 263  2 9 9 9 If you have any questions about this handbook, please feel free to contact the City Clerk by phone at (650) 329-2571 and e-mail at city.clerk@cityofpaloalto.org or the City Attorney by phone at (650) 329-2171 and e-mail at city.attorney@cityofpaloalto.org. CITY COUNCIL PROCEDURES AND PROTOCOLS HANDBOOK DRAFT HANDBOOK WITH POLICY AND SERVICES 2023 RECOMMENDATIONS FOR DISCUSSION Draft November 2023 Procedures and Protocols Approved 04/24/2023 with New Table of Contents (last updated May 2023) Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 17  Packet Pg. 194 of 263  2 9 9 9 TABLE OF CONTENTS Introduction...............................................................................................................3 PART I: CITY COUNCIL PROCEDURES ...........................................................................4 SECTION 1 – CITY COUNCIL ORGANIZATION AND STRUCTURE..................................................4 1.1 Annual Organization of City Council.............................................................................4 1.2 Council Committees......................................................................................................4 1.3 Respect the Work of the Council Committees..............................................................7 SECTION 2 - GENERAL PROCEDURES FOR CITY COUNCIL MEETINGS.........................................8 2.1 Meeting Schedules, Agendas and Supporting Materials ..............................................8 2.2 The Mayor and Vice Mayor Should Work with Staff to Plan the Council Meetings......9 2.3 Attendance Procedures................................................................................................9 2.4 Colleagues’ Memos....................................................................................................14 SECTION 3 - CITY COUNCIL MEETING ORDER OF THE AGENDA...............................................14 3.1 Call to Order...............................................................................................................15 3.2 Special Orders of the Day...........................................................................................15 3.3 Closed Sessions...........................................................................................................15 3.4 Agenda Changes, Additions, and Deletions................................................................17 3.5 General Public Comment (see Section 5 on Public Participation for more details about “General Public Comment”) ............................................................................17 3.6 Council Member Questions, Comments, and Announcements (including reports on Boards, Commissions, and Committees) ...................................................................17 3.7 Study Sessions............................................................................................................18 3.8 Consent Agenda .........................................................................................................18 3.9 City Manager’s Comments..........................................................................................20 3.10 Action Items...............................................................................................................20 3.11 Adjournment..............................................................................................................20 SECTION 4 - PROCEDURES AT CITY COUNCIL MEETINGS.........................................................21 4.1 Council Motion and Voting Processes throughout the Agenda (exist. Procedures 2.4 U and V)......................................................................................................................21 4.2 Motion Procedures.....................................................................................................21 4.3 Voting and Debate of Agenda Items...........................................................................25 4.4 Quasi-Judicial Matters................................................................................................27 SECTION 5 - HOW THE PUBLIC ENGAGES WITH THE CITY COUNCIL........................................29 5.1 Public Participation During City Council Meetings......................................................29 SECTION 6 - CITY COUNCIL QUESTIONS ON AGENDA-RELATED ITEMS....................................32 6.1 Submit Questions on Council Agenda Items Ahead of the Meeting...........................32 6.2 City Council emails for Agenda-Related Items Procedure...........................................32 SECTION 7 – COUNCIL VALUES AND ANNUAL COUNCIL PRIORITIES........................................33 SECTION 8 - PROCEDURES AND PROTOCOLS REVIEW AND ENFORCEMENT ...........................35 8.1 Commit to Annual Review of Important Procedural Issues........................................35 8.2 Enforcement...............................................................................................................35 PART II: CITY COUNCIL PROTOCOLS...........................................................................36 SECTION 1 – CITY COUNCIL CONDUCT.....................................................................................36 1.1 Positive Work Place Environment...............................................................................36 1.2 Comply with Law........................................................................................................36 1.3 City Council Core Responsibilities (exist. Protocol Sec. 1)...........................................36 Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 18  Packet Pg. 195 of 263  2 9 9 9 1.4 General Member Conduct..........................................................................................37 1.5 Decisions Based on Merit...........................................................................................38 1.6 Advocacy ....................................................................................................................38 1.7 Council Conduct with City Staff..................................................................................39 1.8 Use of Staff Time........................................................................................................40 SECTION 2 - CITY COUNCIL CONDUCT WITH PALO ALTO BOARDS AND COMMISSIONS..........41 2.1 If Attending a Board or Commission Meeting, Identify Your Comments as Personal Views or Opinions.......................................................................................................41 2.2 Refrain from Lobbying Board and Commission Members...........................................41 2.3 Remember that Boards and Commissions are Advisory to the Council as a Whole, not as Individual Council Members..................................................................................41 2.4 Concerns about an Individual Board or Commission Member Should be Pursued with Tact.............................................................................................................................41 2.5 Be Respectful of Diverse Opinions..............................................................................42 2.6 Keep Political Support Away from Public Forums.......................................................42 2.7 Maintain an Active Liaison Relationship......................................................................42 2.8 Role of Council Liaison to Board or Commission ........................................................42 SECTION 3 - STAFF CONDUCT WITH CITY COUNCIL.................................................................42 3.1 Respond to Council Questions as Fully and as Expeditiously as is Practical................42 3.2 Respect the Role of Council Members as Policy Makers for the City..........................42 3.3 Demonstrate Professionalism and Non-Partisanship in all Interactions with the Community and in Public Meetings...........................................................................42 3.4 It is Important for the Staff to Demonstrate Respect for the Council at all Times......43 SECTION 4 - CITY COUNCIL AND BOARDS AND COMMISSIONS POLICY FOR TRAVEL AND MISCELLANEOUS EXPENSE REIMBURSEMENT...................................................................43 4.1 Mayor and Vice Mayor Additional Compensation......................................................43 4.2 Miscellaneous Expenditures.......................................................................................43 4.3 Council and Boards and Commission Travel Policy.....................................................43 SECTION 5 - Confidentiality, Conflicts of Interest, Gifts And Favors........................................44 Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 19  Packet Pg. 196 of 263  3 City Council Protocols and Procedures Handbook Introduction The purpose of this City Council Procedures and Protocols Handbook is to review a set of rules through which the Palo Alto City Council conducts its business in a fair, equitable and effective manner. Adoption of the Handbook is requirement of the Palo Alto Municipal Code: Municipal Code 2.04.100 – Handbook of Procedural Rules The Council shall adopt by resolution a handbook of procedural rules governing any aspect of the conduct of meetings and hearings for the council and its standing committees, including but not limited to agenda requirements, the order of business, rules of order, rules of evidence, closed session procedures and rules for public participation in meetings. The handbook of procedural rules shall be deemed guidelines and failure to comply with any procedural rule shall not be the basis for challenge to or invalidation of any action of the council, nor shall they be construed to create any independent remedy or right of action of any kind. The handbook is organized in two parts: Part I: City Council Procedures This section explains the process through which work is done and basic rules for City Council meetings including public participation guidelines. Part II: City Council Protocols This section explains conduct guidance for the City Council. If a provision of this Handbook conflicts or is inconsistent with the Charter, the Municipal Code, or State or Federal law, the Charter, Code, or State or Federal law shall govern. Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 20  Packet Pg. 197 of 263  4 City Council Protocols and Procedures Handbook PART I: CITY COUNCIL PROCEDURES SECTION 1 – CITY COUNCIL ORGANIZATION AND STRUCTURE 1.1 Annual Organization of City Council The Palo Alto Charter, Article III, Section 8 directs Council to elect one of its members to serve as Mayor and one as Vice-Mayor, and sets forth their duties. Palo Alto Municipal Code Section 2.04.060 provides additional detail. Mayor and Vice-Mayor are elected at the first meeting in January each year. Nominations may be made by any Council member and do not require a second. 1.2 Council Committees (a) Standing Council Committees Policy It is the policy of the Council to use standing committees in open and public meetings to study City business in greater depth than what is possible in the time allotted for Council meetings. Purpose These rules are intended to enhance public participation and committee meetings so that the best possible decisions can be made for Palo Alto. General Requirements Council standing committees shall be subject to the following procedural rules: 1) Quorum A majority of the committee membership shall constitute a quorum. 2) Referrals Only the Council or City Manager shall make referrals to the standing committees. Referrals will generally be directed to only one of the standing committees. Items may be withdrawn from the committee and taken up for consideration by the Council at any Council meeting with the consent of a majority of the Council, and subject to any applicable noticing or agenda-posting requirements. 3) Attendance by Nonmembers As required by the Brown Act, Council members who are not on a committee may attend the committee meeting but only as an observer; they may not speak or otherwise participate in the committee meeting. If Council wishes to allow members who are not serving on the committee to speak, the meeting should be noticed as a meeting of the full Council, and all Council procedural requirements will apply. Commented [GC1]: Policy and Services Discussed this at the May 9, 2023 meeting and concluded the City Council should discuss any desired changes to this section in Q4 2023. The options discussed were whether a ballot measure should be placed before the voters to consider either of the following: 1.To extend the Mayoral term 2.To directly elect the Mayor Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 21  Packet Pg. 198 of 263  5 City Council Protocols and Procedures Handbook 4) Function of committees The purpose and intent of committee meetings is to expedite Council action by providing more thorough and detailed discussion and study of prospective or current Council agenda items with a full and complete airing of all sentiments and expressions of opinion on City problems by both the committee and the public. Actions of the committee shall be advisory recommendations only except as to matters delegated to the committee by Council. 5) Minutes and Report of Committee The City Clerk shall be responsible for the preparation and distribution to the Council of the minutes of standing committee meetings. The minutes for these meetings shall be action minutes which reflect the motions made during these meetings. The minutes of each committee meeting serve as the report to the Council and should be included, as appropriate, in subsequent relevant staff reports. 6) Agenda The presiding officer of each standing committee shall work with staff to prepare the agenda for committee meetings. Items should be scheduled as they are ready, taking into account the sequence of referral, the time required for staff research and analysis to support committee discussions, the time-sensitivity of items, and other factors as determined by the chair and City Manager. 7) Public Participation at Committees The presiding officer shall determine the time that each speaker is allotted during general public comment and public comment on agendized items. The chair will typically set individual speaker speaking time at 3 minutes per speaker. If extended public participation is desired the chair may provide for a longer period; if there are a large number of speakers or many agenda items, speaking time may be shortened. 8) New Standing Committees Council may establish new standing committees as needed. (b) Policy and Services Committee The Municipal Code states that the role of the Council Policy & Services Committee is to consider and make recommendations on matters referred to it by the Council relating to parliamentary and administrative procedures and policy matters pertaining to intergovernmental relations, personnel policies, planning and zoning, traffic and parking, public work, and community and human services. (§2.04.220). (c) Finance Committee The Municipal Code states that the role of the Council Finance Committee is to consider and make recommendations on matters referred to it by the Council relating to finance, budget, financial audits, capital planning and debt. (§2.04.210). Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 22  Packet Pg. 199 of 263  6 City Council Protocols and Procedures Handbook (d) Council Appointed Officers (CAO) Committee The CAO Committee meets on an as-needed schedule to address issues that Council has referred to the Committee related to Council's four direct appointees: the City Manager, City Attorney, City Clerk and City Auditor. For example, the committee may be tasked with duties related to performance evaluations, compensation, and the filling of vacancies. (e) City Schools Liaison Committee The City-Schools Liaison Committee is composed of two Council members and two members of the Board of Education of the Palo Alto Unified School District. The committee’s purpose is to share information, collaborate, and coordinate on issues related to Palo Alto’s school-aged children and youth. (f) Ad Hoc Committees Policy The Council may create Ad Hoc Committees on a limited basis where necessary to study City business in greater depth than what is possible in the time allotted for Council and Standing Committee meetings. Purpose These rules are intended to clarify the distinctions between Standing and Ad Hoc Committees and to set up guidelines for creation of Ad Hoc Committees. General Requirements Council Ad Hoc Committees shall be subject to the following procedural rules: 1) Definition of Ad Hoc Committee An Ad Hoc Committee is a temporary advisory committee composed solely of less than a quorum of members of the Council or any Council Standing Committee. The work of an Ad Hoc Committee has a limited or single purpose. An Ad Hoc committee is not intended to be perpetual but rather to be dissolved in a finite period time, once its specific task is completed. By contrast, a Standing Committee has continuing subject matter jurisdiction over a variety of related topics. 2) Brown Act The procedural requirements of the Brown Act apply to all committees that have either: (a) continuing subject matter jurisdiction over a matter or group of related matters; or (b) a regular meeting schedule set by Council action. All Standing Committees are Brown Act bodies. Ad hoc committees are generally not Brown Act bodies, provided that they are temporary bodies, formed for the purpose of addressing a limited or single purpose, include only members of Council, and do not have a regular meeting schedule set by Council action. When Council creates an Ad Hoc committee that is not a Brown Act body, Council may, at its discretion, direct that the committee follow Brown Act procedures. Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 23  Packet Pg. 200 of 263  7 City Council Protocols and Procedures Handbook 3) Creation and Appointment The Mayor or the City Council may create an Ad Hoc Committee and appoint three or fewer members of the Council to serve. In contrast, only the Council and not the Mayor alone can create a Standing Committee. The Mayor makes appointments to Standing and Ad Hoc Committees. The Mayor will publicly announce any Ad Hoc Committee created by her or him and its membership and stated purpose. The Clerk shall post this information on the Council website. The City Manager shall prepare a report to Council about the anticipated time commitment required for staff to assist the Ad Hoc Committee. 4) Duration Ad Hoc Committees are created for a finite period of time. If an Ad Hoc Committee does not complete its task by the end of the calendar year, it shall not continue unless reappointed by the new Mayor in the following year. 5) Members Ad Hoc Committees shall consist of less than a quorum of Council members only, and shall not include any other persons, including members of other legislative bodies. 6) Reporting Ad Hoc Committees shall report their recommendations to the Council in the timeframe directed by Council. Any Council Member may ask during ‘Council Member Questions, Comments And Announcements’ that an updated Ad Hoc Committee report be placed on an upcoming meeting agenda. 7) Termination of Ad Hoc Committee by Majority of Council A majority of the Council may vote to terminate any Ad Hoc Committee following placement of the issue on an agenda. 8) Conclusion A public announcement shall be made any time the Ad Hoc Committee has concluded its work and/or upon dissolution. 1.3 Respect the Work of the Council Committees Council should respect the work of Council committees, as their purpose is to provide focused, in- depth discussion of issues to help inform and expedite Council business. If a matter is taken forward to the full Council for approval after receiving a unanimous vote at committee, the item will be placed on the Consent Calendar, unless otherwise recommended by the committee, Mayor, City Attorney or City Manager. *** Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 24  Packet Pg. 201 of 263  8 City Council Protocols and Procedures Handbook SECTION 2 - GENERAL PROCEDURES FOR CITY COUNCIL MEETINGS The purpose of these guidelines is to facilitate the orderly and efficient conduct of Council business. This purpose recognizes the value of establishing a community understanding of meeting procedures so that broad public participation is encouraged. This purpose also recognizes that Council members must have a common approach to the discussion and debate of City business so that meetings are both streamlined and thorough. These are guidelines, rather than rules. The Council intends that City staff and Council members will follow these guidelines. However, these guidelines should not be used in a way that leads to inefficiency, unfairness, or the promotion of form over substance. In addition to Council-adopted guidelines, State law establishes a variety of mandatory meeting rules that the City must follow in order to ensure open government and fair process, regardless of unusual situations and consequences. (See Cal. Govt Code section 54950.) 2.1 Meeting Schedules, Agendas and Supporting Materials (a) Meeting Schedules for Regular and Special Meetings The City Council generally conducts two different kinds of meetings: regular meetings and special meetings. The Municipal Code provides that regular City Council meetings are conducted at City Hall on the first three Monday nights of each month, except during the Council’s annual summer and winter recesses, at 5:30 p.m. The Council also schedules periodic special meetings, which are meetings on any day or time other than the regular meeting time. This may include meetings on the regularly-scheduled first three Mondays where the start time is 5 p.m. or earlier, or meetings on a fourth or fifth Monday, or meetings scheduled on any other day or time. The Mayor or Council may call a special meeting on a minimum of 24 hours’ notice. Special meetings need not be held at City Hall, as long as the alternate location is within the City. The Council makes every effort to provide notice well in advance of 24 hours, especially when the special meeting is for the purpose of conducting a Study Session. (c) Posting of Agendas Under the Brown Act, meeting agendas must be posted no later than 72-hours prior to regular meetings and 24-hours prior to special meetings. It is City policy to make every effort to post the agenda on Thursday, 11 days prior to Monday meetings, whether regular or special. Agendas are posted in King Plaza by the elevators and are uploaded to the City Council web page. Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 25  Packet Pg. 202 of 263  9 City Council Protocols and Procedures Handbook (d) Supporting Reports and Materials It is City policy to make every effort to provide supporting reports and materials at the time the agenda is posted. Typically, this will occur 11 days before the meeting. Materials that are not available at the time of agenda posting will be distributed as soon as feasible before the meeting. Materials that are distributed to a majority of Council will be made available to the public at the same time, as required by law. Some materials, such as presentation materials or “supplemental memoranda” (previously referred to as “at places” memoranda) may be distributed to Council members and the public at the meeting. (e) Late Submittal of Correspondence or Other Information Related to Planning Applications In order to allow for adequate staff review and analysis and to ensure public access to information, all plans, correspondence, and other documents supporting planning applications being heard by the City Council must be submitted to staff not later than noon five (5) working days prior to the release of the Council Agenda Packet. If any correspondence or other information is submitted after this deadline to Council members or staff, and staff determines additional review is needed, staff will reschedule the item for a future Council meeting. If a Council member receives planning application materials from a project applicant, or receives other significant material related to the application from any source, he or she shall notify the City Clerk and the City Manager as soon as possible so that all relevant material can be entered into the official record and made available to all parties and the public. At the meeting the City Council may determine whether to continue or refer the item to the appropriate board and/or commission if significant changes to a project or significant new information become known. 2.2 The Mayor and Vice Mayor Should Work with Staff to Plan the Council Meetings There are three purposes to the pre-Council planning meeting: 1) to plan how the meeting will be conducted, including review of approximate time allocation of Staff Report presentations and to ensure adequate time for large complex items; 2) to identify any issues or questions that may need greater staff preparation for the meeting; and 3) to discuss future meetings. Consideration in building the agenda should be given to the potential length of the meeting and at what point items of significant public concern may be heard. The purpose of the meeting is not to work on policy issues. Normally, only the Mayor and Vice Mayor are invited and expected to attend the pre-Council meetings with the City Manager, other CAOs, and department managers. The Mayor and Vice Mayor’s role is to represent the interest of the entire Council. 2.3 Attendance Procedures (a) Attendance Required Council members, the City Clerk, City Attorney, and City Manager, along with any other City officers and department heads that have been requested to be present, shall take their regular stations in the Council Chambers at the start of every scheduled meeting. The presiding officer will ensure that each meeting will include at least one 15-minute break. The Council expects its members to attend regularly and notify the City Clerk of any planned absences. The Council may levy fines of Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 26  Packet Pg. 203 of 263  10 City Council Protocols and Procedures Handbook up to $250.00 against Council members who willfully fail to attend meetings (PAMC section 2.04.050). (b) Remote Attendance of Council Members at Council and Committee Meetings Council members are strongly encouraged to attend meetings in person. State law allows Council members to attend meetings remotely by following the procedures outlined in Government Code Section 54953(b) (“Standard Remote Attendance”) or the procedures outlined in Assembly Bill 2449 (2022) (“AB 2449 Remote Attendance”). For convenience, these procedures are summarized below and are current as of the date of Handbook revision. If state law is subsequently amended, the amended terms of State law will apply. Council members are encouraged to consult in advance with the City Clerk and, if needed, the City Attorney to ensure compliance with all required procedures. 1) Number of Remote Appearances Remote attendance shall be permitted not more than 3 five (5) times a year per legislative body (for example, five times a year for full Council meetings and five additional times a year for each Council committee). AB 2449 rules still apply which state that no more than two meetings may be attended remotely during a calendar year for “just cause,” as described below. 2) General Procedures for Appearing Remotely Council members must follow mandatory procedures set forth in State law. At any meeting where a Council member is attending remotely, the following requirements must be met: (A) At least a quorum of the Council must participate from a singular physical location within the City. (B) The agenda must identify and include an opportunity for the public to attend and directly address the council member through a call-in option, an internet-based service option, and in-person at the location of the meeting. (C) Council may not take action if there is an unresolved disruption to the meeting broadcast or to the ability to take call-in or internet-based public comment. If the above threshold requirements are met, the Council member attending remotely must ensure they follow the procedures associated with either Standard Remote Attendance or AB 2449 Remote Attendance. 3) Standard Remote Attendance Procedures A Council member attending remotely using these procedures must ensure that: (A) The meeting agenda identifies the remote attendance location and is posted at that location in an area that is accessible and visible 24 hours a day for at least 72 hours prior to a regular meeting and 24 hours prior to a special meeting. (B) The remote attendance location is open and fully accessible to the public, and fully accessible under the Americans with Disabilities Act, throughout the entire Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 27  Packet Pg. 204 of 263  11 City Council Protocols and Procedures Handbook meeting. These requirements apply to private residences, hotel rooms, and similar facilities, all of which must remain fully open and accessible throughout the meeting, without requiring identification or registration. (C) The remote attendance technology used is open and fully accessible to all members of the public, including those with disabilities. (D) Members of the public who attend the meeting at the remote attendance location have the same opportunity to address the Council from the remote location that they would if they were present in Council Chambers. (E) The remote attendance location must not require an admission fee or any payment for attendance. (F) If the meeting will include a closed session, the Council Member must ensure that there is a private location available for that portion of the meeting. A private location means a closed room such that no other person can hear any portion of the closed session. If the Council Member intends to follow the procedures of Standard Remote Attendance but determines that any or all of these requirements cannot be met, he or she shall not participate in the meeting remotely using Standard Remote Attendance procedures. 4) Standard Remote Attendance Guidelines (A) Five days written notice in advance of the publication of the agenda must be given by the Council member to the City Clerk’s office about their intent to participate remotely; the notice must include the address at which the remote attendance will occur, and the address the Council packet should be mailed to, if a hard copy is requested. (B) The Council member is responsible for posting the Council agenda in the remote location, or having the agenda posted by somebody at the location and confirming that posting has occurred. The City Clerk will assist, if necessary, by emailing, faxing or mailing the agenda to whatever address or fax number the Council member requests; however, it is the Council member’s responsibility to ensure that the agenda arrives and is posted. If the Council Member will need the assistance of the City Clerk in delivery of the agenda, the fax number or address must be included in the five-day advance written notice above. (C) The Council Member must ensure that the location will be publicly accessible while the meeting is in progress. (D) The Council Member must state at the beginning of the Council meeting that the posting requirement was met at the location and that the location is publicly accessible and must describe the location. Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 28  Packet Pg. 205 of 263  12 City Council Protocols and Procedures Handbook 5) AB 2449 Remote Attendance Procedures In 2022 the Legislature adopted AB 2449, which amended the Brown Act to allow remote participation in certain narrow circumstances (listed below) without publishing the remote location on the meeting agenda and without providing public access from the remote location. Where the requirements of AB 2449 are met, a Council member is not required to follow the procedures described in Section 2.3(b)(3)(A)-(E), above. A Council member may use AB 2449 if the Council member has either “just cause” or “emergency circumstances” that require remote participation, as defined by AB 2449. (A) Just cause. i.“Just cause” is defined as: a. a childcare or caregiving need of a child, parent, grandparent, grandchild, sibling, spouse, or domestic partner that requires remote attendance, b. a contagious illness that prevents in-person attendance, c. a need related to a physical or mental disability which cannot be resolved by a request for reasonable accommodation, or d. travel while on the business of a state or local agency. ii. Notice. A Council member with “just cause” to attend remotely must notify the Council or Council committee and the City Clerk at the earliest possible opportunity, including at the start of the meeting, of their need to participate remotely and provide a general description of the circumstances. (B) Emergency Circumstances. “Emergency circumstances” is defined as a physical or family medical emergency that prevents a Council member from attending the Council meeting in person. i. Notification and acceptance. a. A Council member attending remotely due to “emergency circumstances” must notify the Council or Council committee and the City Clerk at the earliest possible opportunity. b. The Council or Council committee must request a general description of the circumstances relating to the Council member’s need to appear remotely. The description does not need to have more than 20 words, and the Council member does not have to disclose any personal medical information. c. At the earliest opportunity available to it, the Council or Council committee must, by a majority vote of its members, take action on the request to approve or disapprove it. If the request does not allow sufficient time to place it on the agenda for the meeting for which the request is made, the legislative body must take action on the request at Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 29  Packet Pg. 206 of 263  13 City Council Protocols and Procedures Handbook the beginning of the meeting by majority vote. (C) Disclosures. Council members attending remotely must publicly disclose at the meeting before any action is taken whether any other individuals 18 years of age or older are present in the room at the remote location with the member and the general nature of the member’s relationship with the individual. (D) Technology. Council members attending remotely shall participate using both audio and visual technology. If the Council member intending to follow the procedures of AB 2449 Remote Attendance determines that any or all of these requirements cannot be met, he or she shall not participate in the meeting remotely using AB 2449 Remote Attendance procedures. 6) AB 2449 Remote Attendance Sample Scripts At the start of the meeting, the Council member attending remotely may use the following language to identify under which provision they are attending remotely: Just Cause: “I have just cause to attend this meeting remotely under AB 2449. I have not attended a meeting remotely due to just cause more than once this calendar year. I have attended [NUMBER] meetings remotely this calendar year. I must attend this meeting remotely because… 1. “… I must provide caregiving to [RELATION].” 2. “… a contagious illness prevents me from attending in person.” 3. “… I have a need related to a disability which could not be accommodated at this meeting.” 4. “… I am travelling while on official business of [STATE OR LOCAL AGENCY].” “In this room, I am accompanied by… 1. “…no one over the age of 18.” 2. “…one or more individuals over the age of 18. They are [RELATION (e.g., my spouse, coworker, medical provider)].” Emergency Circumstances: “Due to emergency circumstances, I request to attend this meeting remotely under AB 2449. I have attended [NUMBER] meetings remotely this calendar year. The [PHYSICAL OR FAMILY] medical emergency I am facing requires my remote attendance because [BRIEF DESCRIPTION].” “In this room, I am accompanied by… 1. “…no one over the age of 18.” 2. “…one or more individuals over the age of 18. They are [RELATION (e.g., my spouse, coworker, medical provider)].” Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 30  Packet Pg. 207 of 263  14 City Council Protocols and Procedures Handbook 2.4 Colleagues’ Memos Council members may bring forward a colleagues’ memo on any topic to be considered by the entire Council. A minimum of two Council members are required to place such a memo on the agenda, reflective of the Council procedure requiring a motion and a second for consideration of a motion by the Council. Up to three Council members may sign a colleague memo. To comply with the Brown Act, three is the maximum number Council members who may discuss or sign onto a colleagues’ memo. Prior to preparing a colleagues’ memo, Council members should consult with the City Manager to determine whether the City Manager is able to address the issues as part of their operational authority and within current budgeted resources. Colleagues memos should include a section drafted by the City Manager that identifies any potential staffing or fiscal impacts of the contemplated action. Council members shall provide a copy of the proposed memo to the City Manager and City Attorney prior to finalization. Completed Council colleagues’ memos should be provided to the City Manager, City Attorney and City Clerk with as much advance notice as possible, to provide time for staff to prepare the resource impact section and prepare the memo for placement on the agenda. The Council will not take action on the night that a colleagues’ memo is introduced if it has any implications for staff resources or current work priorities which are not addressed in the memo. The Council will discuss the colleagues’ memo and refer it to a committee or direct the City Manager to agendize the matter for Council action. Action may be taken immediately by the Council on colleagues’ memos where there are no resource or staffing implications, or where these implications are fully outlined in the colleagues’ memo. The Brown Act requires that the public be fully informed of the potential action by the Council when the agenda is published. In order to satisfy the Brown Act requirements, the Council should consult with the City Attorney to ensure that the proposed title to the colleagues’ memo contains all actions that the Council members want completed on the night of the Council review. Council members nearing the end of their term desiring to submit a colleagues’ memo should consider submittal timing and steps needed in order to ensure Council discussion prior to the end of their term. Staff will make best efforts to agendize such memos prior to the end of the Council term. *** SECTION 3 - CITY COUNCIL MEETING ORDER OF THE AGENDA City Council agendas will be prepared by the City Clerk and presented to the City Council in the order described below, except as determined otherwise by the Mayor in consultation with the City Manager. In setting the agenda, the typical order of agenda items is as shown below but the ordering can be changed in the agenda-setting process if needed. The City Manager, with prior approval of the Mayor, is authorized to designate upon the agenda items that shall be taken up first or at a specific time during the course of the meeting (PAMC section 2.04.070.) The City Council may take matters up out of order upon approval by a majority vote of those present: Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 31  Packet Pg. 208 of 263  15 City Council Protocols and Procedures Handbook Call to Order Special Orders of the Day Closed Session Agenda Changes, Additions and Deletions General Public Comment Council Member Questions, Comments and Announcements Study Session Consent Agenda Items may be placed upon the consent calendar by any council-appointed officer whenever, in such officer's judgment, such items are expected to be routinely approved without discussion or debate. Council Minutes are approved on Consent. The consent calendar shall be voted upon as one item. City Manager Comments Action Items Adjournment Items Considered After 10:30 p.m.: The Council makes every effort to end its meetings before 11 p.m. With that goal in mind, the Council generally does not start discussion of new matters after 10:30 p.m. Before 10 p.m. the Council will decide and announce whether it will begin consideration of any agenda items after 10:30 p.m. and, if so, which specific items will be taken up. 3.1 Call to Order The meeting can be called to order in recognition of a holiday or special designation to bring awareness and show appreciation of that holiday or special designation. The Mayor will determine such recognitions in consultation with the Manager, and dates will primarily originate from a calendar adopted by the Council. 3.2 Special Orders of the Day Council may acknowledge a special appreciation for individuals or groups for achievements, holidays (dates included in the annual Council-adopted calendar), etc., through the Special Order of the Day. This can be done through: - A certificate of recognition for individuals linked to a certain event or holiday - Information read by Council members in honor of a group or individual - A proclamation or resolution presented to a group or individual - Informational presentation from a community group about their program. 3.3 Closed Sessions Closed sessions are the only part of a Council meeting that the public cannot attend though to the public may make public comments before the start of the closed session. Council may meet in closed Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 32  Packet Pg. 209 of 263  16 City Council Protocols and Procedures Handbook session only as specifically authorized by State law. The most common types of closed sessions are labor negotiations, litigation, employment issues, and real estate negotiations. The Council will make a public report after the session where required by State or local law. (a) Closed Session Requirements 1) Announcements Before Closed Sessions The Mayor/City Clerk shall announce the item or items to be considered in closed session by reference to the appropriate agenda number or letter, or in an alternate form that shall be provided by the City Attorney. 2) Public Comments Members of the public are permitted to make public comments on closed session matters. The City Clerk shall be present in the open session to record Council attendance and any statements made by the public or by the Council. 3) Vote to Go into Closed Session The Council shall vote to go into closed session. 4) Attendance The City Manager and City Attorney, or their designees, shall attend closed sessions unless it is necessary to excuse them. Additional staff and consultants may attend, but only to the extent that their attendance is necessary to support Council’s consideration of the item. 5) Public Reports State and local law require the Council to make a public report after a closed session when certain kinds of actions are taken (PAMC section 2.04.030). Reports from closed sessions shall be made by the Mayor, the Vice Mayor in the Mayor's absence, or such other City representative as designated by the Council. Such designated person is the only individual authorized to make public statements concerning the closed session. It is the policy of the Council to inform the public of action taken in closed session to the greatest extent possible. It is recognized, however, that the need for confidentiality is inherent in closed sessions and that certain matters if revealed may be a detriment to the results desired. The Council shall publicly report: (A) any decision to appoint, employ, or dismiss a public employee and the roll call vote thereon at its next public meeting; (B) actions related to litigation and the roll call vote on such actions, unless the report would, in the written opinion of the City Attorney for specifically stated reasons, clearly jeopardize the City’s ability to effectuate service of process on one or more unserved parties or impair the City’s ability to resolve the matter through negotiation, mediation or other form of settlement. Notwithstanding the City Attorney's written opinion, the Council may under any circumstance, by majority vote, determine that it is in the City's best interests to disclose actions taken in Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 33  Packet Pg. 210 of 263  17 City Council Protocols and Procedures Handbook closed session related to litigation. The public report shall be given as soon as possible, but no later than the next regular meeting, and shall include the vote or abstention of every member present. The City Attorney’s written opinion shall be made public, along with any action taken and any vote thereon, as soon as any litigation is concluded. The City Attorney shall record any action and vote upon such forms as the City Attorney may deem desirable; (C) Other matters as required by law. 6) No Minutes No minutes of closed sessions shall be kept. The City Attorney shall record the information necessary to comply with State law and Municipal Code section 2.04.030. 7) Confidentiality No person in attendance at a closed session may disclose the substance or effect of any matter discussed during the session (PAMC section 2.04.040), except to the extent authorized by a majority vote of Council or as required by a court. 3.4 Agenda Changes, Additions, and Deletions (a)By majority vote, Council may change the order or delete an item from the agenda. Council may not add items to the agenda except in cases of emergency as defined by State law. (b)When the Council decides to reschedule business items, the business items will generally be rescheduled as follows: 1) Items Rescheduled to a Date Uncertain When Council reschedules an item to a date uncertain, the City Manager, Clerk and Mayor shall confer on an appropriate date to reschedule the item. 2) Items Rescheduled to a Date Certain Council may reschedule an item to a specific future Council meeting. 3.5 General Public Comment (see Section 5 on Public Participation for more details about “General Public Comment”) 3.6 Council Member Questions, Comments, and Announcements (including reports on Boards, Commissions, and Committees) The purpose of this agenda item is to allow Council to briefly ask staff about matters upon which Council has taken action or given direction, make general comments as a reference to staff on factual matters of community concern, or make brief announcements in a manner consistent with Government Code section 54952.2. If more than brief statements are desired, the item shall be agendized for a future meeting in the manner otherwise provided by these Procedures, such as by the City Manager or through a Colleagues Memo. Major policy issues and new assignments will not be discussed or considered in this item. To the extent possible, Council will confer with staff before raising matters under this agenda item. This agenda item will generally last up to 15 minutes and the Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 34  Packet Pg. 211 of 263  18 City Council Protocols and Procedures Handbook public may not comment. 3.7 Study Sessions Study Sessions are agenda items during which the Council receives information about City business in an informal setting. Study sessions are intended to be discussion items only. The Decorum rules still apply to the behavior of the Council and public. (a) Study Session Procedures 1) Time Special study sessions will be held as needed. 2) Topics and Process Study sessions are intended to be conducive to in-depth factual presentations by City staff and detailed questioning and brainstorming by Council on issues of significant interest. The Council may discuss the material freely without following formal rules of parliamentary procedure, and the shall have discretion to determine the appropriate process for conducting the study session, including when public comment will be heard. 3) Public Participation Members of the public are allowed to make public comments on study session matters at the time directed by the presiding officer. The general rules of decorum apply. 4) No Action Taken Staff may be directed to bring matters back for Council consideration at future meetings, as no action can be taken. 3.8 Consent Agenda The Consent Agenda is the section where items not anticipated to require discussion can be presented and acted upon efficiently by Council. This generally includes administrative items; implementation of policies and programs previously approved by Council, including contracts; and other routine or non-controversial items. The Mayor and City Manager should be sensitive to high dollar value contracts and consider placing those items in the action agenda section. The consent section may include: (a) Ordinances and Resolutions The following ordinances and resolutions may appear on a consent calendar: 1) Second Reading (passage and adoption) of Ordinances. 2) Resolutions that are ceremonial in nature. 3) Ordinances or resolutions that implement a prior Council policy direction in the manner contemplated by the Council's previous actions, in the Adopted Budget (including the Capital Improvement Program and especially in the department key plans), the Council Priorities, and other similar sources. Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 35  Packet Pg. 212 of 263  19 City Council Protocols and Procedures Handbook 4) Budget amendments that accept funding such as grants or gifts, provided Council has previously approved the activity or program. 5) Resolutions approving funding applications, such as grants or loans, provided that the program or activity has been previously approved by Council. 6) Clerical amendments to local laws. 7) Conforming amendments to local laws that are required by State law, except items of significant public interest. (b) Administrative Matters Including Contracts, Appointments, Approval of Applications, and Any Other Matter An administrative matter may be placed on the consent calendar if it is: 1) An action that is merely the administrative execution of previous Council direction. The Council direction and vote will be quoted in the Staff Report accompanying the item. 2) Contracts for which the subject or scope of work has been previously reviewed by the City Council. 3) A contract for goods, general services, professional services, public works projects, dark fiber licensing contracts or wholesale commodities, purchases, as outlined in the Purchasing Ordinance, provided such contracts represent the customary and usual business of the department as included in the Adopted Budget. Examples include routine maintenance contracts, annual audit agreements software and hardware support agreements, janitorial services, and copier agreements or postage machine agreements. 4) Designation of heritage trees. 5) Designation of historic building at the request of the property owner if there are no unusual policy ramifications. 6) Approval of funding applications, such as grants or loans, provided that Council has previously approved the general program or activity. 7) Items identified in the Municipal Code for placement on Consent. This includes, for example, certain appeals of determinations of the Director of Planning and Development Services. 8) Approval of minutes. 9) Referral of an item to a Standing Committee, Committee, Board, Commission, or Council Appointed Officer. 10) Other similar matters as determined by the City Manager, in consultation with the Mayor. (c) Items Unanimously Recommended for Approval by a Council Committee or Council-Appointed Board or Commission, Unless Otherwise Recommended by the Committee/Commission, Mayor, City Attorney or City Manager Items recommended unanimously for approval by Council committees and Council-appointed boards and commissions are generally placed on Consent, except as otherwise recommended by Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 36  Packet Pg. 213 of 263  20 City Council Protocols and Procedures Handbook the Committee, Board or Commission, or the Mayor, City Manager or City Attorney, or as required by law. (d) Public Comment on Consent Agenda Members of the public wishing to speak to items on the Consent Calendar shall be permitted to speak prior to Council Member requests to remove an item or the vote to adopt the Consent Calendar. (e) No Discussion or Debate; Voting; Recusals; Speaking to a No Vote There shall not be discussion or debate on any item on the Consent agenda. A Council member who needs to recuse themself from a Consent item shall inform the Mayor and make any public disclosure that is required. The Clerk shall record the recusal on the item. Any Council member may request that his or her vote be recorded as a "no" on any item or items on the Consent agenda. Any Consent item not receiving the number of “yes” votes required for the item is not approved. Council members may explain their "no" votes at the end of the Consent Agenda, with 3-minutes permitted for non-appeal items and 5 minutes for appeal items for each Council member. Council members may also submit statements in writing to the City Clerk before action is taken. The City Clerk shall preserve and make available such written statements in a manner consistent with the Brown Act and shall assure that the minutes of the meeting make reference to the existence and location of such written statements. (f) Council Requests to Remove Items from Consent Agenda Three Council members may request that an item be removed from the Consent Agenda except where otherwise required by the Municipal Code. Under the Municipal Code, four votes are required to remove a second reading of an ordinance from the Consent Agenda. Removed items will be heard either later in the meeting or agendized for a subsequent meeting, depending upon the number of speakers, the anticipated length of the items that have been officially scheduled for discussion on a particular evening, the availability of staff required to support the discussion, and legally- required noticing procedures. The Mayor, in consultation with the City Manager, will decide when any removed items will be heard. Council members who intend to request to remove an item should strive to inform the City Manager’s office no later than noon the Sunday before the meeting. This is so that the Manager can assess the operational impacts of rescheduling a removed item to a later agenda and, if appropriate, can arrange for appropriate staff to attend Council to support consideration of the item. 3.9 City Manager’s Comments 3.10 Action Items 3.11 Adjournment Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 37  Packet Pg. 214 of 263  21 City Council Protocols and Procedures Handbook *** SECTION 4 - PROCEDURES AT CITY COUNCIL MEETINGS 4.1 Council Motion and Voting Processes throughout the Agenda (exist. Procedures 2.4 U and V) (a) Motions, Debate & Voting Policy and Summary of Rules It is the policy of the Council to follow simplified rules of parliamentary procedure for motions, debate and voting as an alternative procedure to Robert’s Rules of Order. These rules focus on the types of motions the Council can make and when those motions are properly used. See the Summary Table below. Purpose The purpose of these rules to facilitate orderly and thorough discussion and debate of Council business in order to create open respectful discussion and results that serve the public interest. (b)Motions A motion is a formal proposal by a Council member asking that the Council take a specified action. A motion must receive a second before the Council can consider a matter. Motions may be provided to the City Clerk in advance of the Council meeting so that the Clerk can efficiently post the motion on the screen for the convenience of the community and Council members. There are two types of motions; these are the “main” motion and any secondary motions. Only one main motion can be considered at a time. The main motion is the first motion to be made and receive a second. A secondary motion is described below which can be considered while a main motion is pending. 4.2 Motion Procedures (a) Main Motion Procedures 1) Get the Floor A Council member should seek permission of the presiding officer before making a motion. 2) State the Motion A motion is made by a Council member (the “maker”) stating his or her proposal. Longer proposals can be written. 3) Second Required Any other Council member (including the presiding officer) who supports the proposal (or who simply wishes it to be considered) may “second” the motion without first being recognized. Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 38  Packet Pg. 215 of 263  22 City Council Protocols and Procedures Handbook 4) Motion Transcribed The Clerk shall transcribe the motion so that Council members, the public and staff can read it. 5) Lack of a Second If there is no second stated immediately, the presiding officer should ask whether there is a second. If no Council Member seconds the motion the matter will not be considered. 6) Discussion The maker shall be the first Council member recognized to speak on the motion if it receives a second. The seconder shall be the second Council member to speak on the motion. Generally Council members will speak only once with respect to a motion. If the presiding officer or Council permits any Council member to speak more than once on a motion, all Council members shall receive the same privilege. 7) Secondary Motions Secondary motions may be made by a Council member upon getting the floor. 8) Action After discussion is complete the Council will vote on the motion under consideration. (b)Secondary Motion Procedures Only one main motion may be entertained by Council at a time. The Council recognizes the following secondary motions which may be considered while a main motion is pending. These motions shall have precedence in the order listed below. This means that a secondary motion that is higher on the list will be considered ahead of a pending secondary motion that is lower on the list: The purpose of the allowed secondary motions is summarized in the following text and table. 1) Fix the time to which to adjourn This motion sets a time for continuation of the meeting. It requires a second, is amendable and is debatable only as to the time to which the meeting is adjourned. 2) Adjourn This motion ends the meeting or adjourns it to another time. It requires a second and is not debatable except to set the time to which the meeting is adjourned, if applicable. A motion to adjourn shall be in order at any time, except as follows: (a) when repeated without intervening business or discussion; (b) when made as an interruption of a member while speaking; (c) when the previous question has been ordered; and (d) while a vote is being taken. 3) Take a recess This motion interrupts the meeting temporarily. It is amendable but is not debatable. 4) Raise a question of personal privilege This motion allows a Council Member to address the Council on a question of personal Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 39  Packet Pg. 216 of 263  23 City Council Protocols and Procedures Handbook privilege and shall be limited to cases in which the Council Member's integrity, character or motives are questioned or when the welfare of the Council is concerned. The maker of the motion may interrupt another speaker if the presiding officer recognizes the "privilege." The motion does not require a second, is not amendable and is not debatable. 5) Lay on the table This motion is used to interrupt business for more urgent business. A motion to lay on the table requires a second, is not amendable and is not debatable. It shall preclude all amendments or debate of the subject under consideration. If the motion prevails, and the subject is tabled, the matter must be reagendized in the future if further consideration is to be given to the matter. 6) Previous question This motion “calls the question” by closing debate on the pending motion. A motion for previous question requires a second, is not debatable and is not amendable. It applies to all previous motions on the subject unless otherwise specified by the maker of the motion. If motion for previous question fails, debate is reopened; if motion for previous question passes, then vote on the pending motion. A motion for previous question requires a two- thirds vote of those Council members present and voting. 7) Limit or extend debate This motion limits or extends the time for the Council or any Council Member to debate a motion. It requires a second, is amendable and is not debatable. The motion requires a two-thirds vote of those Council members present and voting. 8) Continue to a certain time This motion continues a matter to another, specified time. It requires a second, is amendable and is debatable as to propriety of postponement and time set. 9) Refer to a city agency, body, committee, board, commission or officer This motion sends a subject to another city agency, body, committee, board, commission or officer for further study and report back to Council, at which time subject is fully debated. It requires a second, is amendable, and is debatable only as to the propriety of referring. The substance of the subject being referred shall not be discussed at the time the motion to refer is made. 10) Amend or substitute A motion to amend retains the original motion and modifies it in some way. A substitute motion deletes the original motion and replaces it with a different motion. Both require a second, are amendable, and are debatable only when the motion to which they appy is debatable. A motion to amend an amendment is in order, but one to amend an amendment to an amendment is not. An amendment modifying a motion is in order but an amendment raising an independent question or one that is not germane to the main motion shall not be in order. Amendments take precedence over the main motion and the motion to postpone indefinitely. Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 40  Packet Pg. 217 of 263  24 City Council Protocols and Procedures Handbook C. Motion Process Reference Chart Motion Description 2nd Required Debatable Amendable 2/3 Vote Fix the time to which to adjourn Sets a next date and time for continuation of the meeting YES Only as to time to which the meeting is adjourned YES NO Adjourn Sets time to adjourn. Not in order if (a) repeated without intervening business (b) made as an interruption of a member while speaking; (c) the previous question has been ordered; and (d) while a vote is being taken YES Only to set the time to which the meeting is adjourned NO NO Take a recess Purpose is to interrupt the meeting YES NO YES NO Raise a question of privilege Allows member to address Council on a question of personal privilege limited to Council welfare or cases where a member’s personal integrity, character, or motives are questioned. NO NO NO NO Lay on the table Interrupts business for more urgent business YES NO NO NO Previous question (close debate or “call the question”) Closes debate on pending motion YES NO NO YES Limit or extend limits of debate Purpose is to limit or extend debate YES NO YES YES Motion to continue to a certain time Continues the matter to another, specified time YES YES YES NO Refer to committee Sends subject to another city agency, body, committee, board, commission or officer for further study and report back to council, at which time subject is fully debated YES Only as to propriety of referring, not substance of referral YES NO Amend or substitute Modifies (or reverses course of) proposed action. Cannot raise independent question. Can amend an amendment, but no further YES Only if underlying motion is debatable YES NO Motion to Reconsider Motion that can be made only during the meeting or adjourned meeting in which the action was taken YES YES NO NO Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 41  Packet Pg. 218 of 263  25 City Council Protocols and Procedures Handbook 4.3 Voting and Debate of Agenda Items (a) Presiding officer to review motion The presiding officer shall assure that all motions are clearly stated before allowing debate to begin. The presiding officer and the maker of the motion should work with the City Clerk to clarify the motion before allowing debate to begin. The presiding officer may review the motion prior to voting. (b) Presiding officer may debate and vote The presiding officer may move, second and debate from the chair, subject only to such limitations of debate as are by these rules imposed on all Council members. The presiding officer shall not be deprived of any of the rights and privileges of a Council member. (c) Division of question If the question contains two or more divisible propositions, each of which is capable of standing as a complete proposition if the others are removed, the presiding officer may, and upon request of a Council member shall, divide the same. The presiding officer's determination shall be appealable by any Council member. (d) Withdrawal of motion A motion may only be withdrawn by the maker with the consent of the Council Member seconding it. (e) Change of vote Council members may change their votes before the next item on the agenda is called. (f) Voting On the passage of every motion, the vote shall be taken by voice or roll call or electronic voting device and entered in full upon the record, except where state law requires a roll call vote (g) Failure to vote It is the responsibility of every Council member to vote unless the member is recused. No Council member can be compelled to vote. (h) Abstaining from vote Council members should only abstain if they are not sufficiently informed about an item, e.g., when there was a prior meeting on the topic and they were unable to view the prior meeting before the current meeting. In the event of an abstention, or silence during a vote, the abstainer in effect, "consents" that a majority of the quorum of the Council members present may act for him or her. (i) Not participating A Council member who is recused from an item due to a conflict of interest, common law bias, or other legal prohibition shall make disclosures required by law, leave the dais if required, and not participate in any way in the discussion or determination of the item. A Council member may otherwise disqualify themself to avoid an appearance of impropriety. Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 42  Packet Pg. 219 of 263  26 City Council Protocols and Procedures Handbook (j) Tie votes Tie votes may be reconsidered during the time permitted by these rules on motion by any member of the Council voting yes or no during the original vote. Before a motion is made on the next item on the agenda, any member of the Council may make a motion to continue the matter to another date. To the extent allowed by law, it is the Council’s intention that any continuance hereunder shall suspend the running of any time in which action of the Council is required by law. Nothing herein shall be construed to prevent any Council member from recommending the agendizing of a matter that resulted in a tie vote for a subsequent meeting. (k) Motion to reconsider A motion to reconsider any action taken by the Council may be made only during the meeting or adjourned meeting when the action was taken. A motion to reconsider requires a second, is debatable and is not amendable. The motion must be made by one of the prevailing side of an issue but may be seconded by any Council member. A motion to reconsider may be made at any time and shall have precedence over all other motions, or while a Council member has the floor, providing that no vested rights are impaired. The purpose of reconsideration is to bring back the matter for review. If a motion to reconsider fails, it may not itself be reconsidered. Reconsideration may be moved only once on the same motion. However, a Council member may make a motion to rescind such action at a subsequent meeting of the Council, provided an appropriate item is on the published agenda. (l) Appeal from the decision of presiding officer When the rules are silent, the presiding officer shall decide all questions of order, subject to appeal by a Council member. When in doubt, the presiding officer may submit the question to the Council, in which case a majority vote shall prevail. Any decision or ruling of the presiding officer may be appealed by request of any member. The presiding officer shall call for a roll call or electronic voting device vote to determine if the presiding officer's ruling shall be upheld. If said vote passes or results in a tie vote, the presiding officer's ruling shall stand. If said vote fails, the decision or ruling of the presiding officer is reversed. (m)Getting the floor; improper references to be avoided Every Council member desiring to speak shall address the presiding officer and, upon recognition by the presiding officer, every Council member shall be confined to the question under debate, avoiding all indecorous language and personal attacks. (n) Interruptions Except for being called to order, a Council member once recognized, shall not be interrupted when speaking, except as otherwise provided for in these rules. A Council member called to order while speaking shall cease speaking until the question or order is determined, and, if in order, said Council member shall be permitted to proceed. (o) Council Member Speaking Time The presiding officer shall give each Council member up to five (5) minutes to speak in each round of discussion during discussions on Council items where discussion takes place. The Council shall be guided by the speaking times set by the presiding officer and shall conclude comments at the Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 43  Packet Pg. 220 of 263  27 City Council Protocols and Procedures Handbook direction of the presiding officer . The presiding officer shall endeavor to treat all members equitably. 4.4 Quasi-Judicial Matters (a) Quasi-Judicial Matters It is the policy of the Council to assure that the due process rights of all persons are protected during City hearings. A “quasi-judicial” hearing is a hearing that requires a higher level of procedural due process because of the potential impact on life, liberty or property. Usually, quasi-judicial hearings involve consideration of an application to develop real property. The City, including Council and associated Boards and Commissions, reaches a determination by applying standards and requirements in existing law to the facts and evidence submitted in the hearing. Findings must be stated to explain the evidentiary basis for Council’s final decision. Purpose These rules are intended to assure that City Council decision making on quasi-judicial matters is based upon facts and evidence known to all parties and to support the role of Boards and Commissions in making independent recommendations to Council. General Requirements 1) Quasi-Judicial Proceedings Defined Quasi-judicial proceedings subject to these procedural rules include hearings involving the following matters: (A) Conditional Use Permits (B) Variances (C) Home Improvement Exceptions (D) Design Enhancement Exceptions (E) Subdivisions, other than final map approvals (F) Architectural Review (G) Other Matters as Determined by the City Attorney 2) Restrictions on Council Communications Outside of Quasi-Judicial Hearings It is the policy of the Council to discourage the gathering and submission of information by Council members outside of any noticed public meeting, prior to final recommendations by the Architectural Review Board or Planning & Transportation Commission. The following procedural guidelines are intended to implement this policy but shall not be construed to create any remedy or right of action. 3) Identification of Quasi-Judicial Matters The City Attorney, in conjunction with the City Clerk and City Manager, will identify agenda items involving quasi-judicial matters on both the tentative and regular Council agendas. This identification is intended to inform the Council, interested parties, and the public that this policy will apply to the matter. Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 44  Packet Pg. 221 of 263  28 City Council Protocols and Procedures Handbook 4) Council to Track Contacts Council members should track contacts with any person or entity pertaining to quasi-judicial matters. Contacts include conversations, meetings, site visits, mailings, or presentations during which substantial factual information about the item is gathered by or submitted to the Council Member. 5) Disclosure When a quasi-judicial matter is agendized at Council, Council members will disclose on the record any contacts they have had outside of a noticed meeting, identify any new or different information they have received, and note information that may influence their preliminary views or opinions about the item. Disclosures may be oral or written and should explain the substance of the contact so that the project applicant, other Council members, interested parties, and the public will have an opportunity to learn of the factors influencing the Council's decision and have an opportunity to controvert or rebut any such factor during the hearing. Disclosure alone will not be deemed sufficient basis for a request to continue the item. A contact or the disclosure of a contact shall not be deemed grounds for disqualification of a Council Member from participation in a quasi-judicial matter unless the Council Member, in consultation with the City Attorney, determines that the nature of the contact is such that it is not possible for the Council Member to reach an impartial decision on the item. 6) No Contacts after Hearings Following closure of a quasi-judicial hearing, and prior to a final decision, Council Members will refrain from any contacts pertaining to the item, other than clarifying questions directed to City staff. 7) Written Findings Required On any matter for which state law or City ordinance requires the preparation of written findings, the staff report and other materials submitted on the matter will contain findings proposed for adoption by the Council. Any motion directly or impliedly rejecting the proposed findings must include a statement of alternative or modified findings or a direction that the matter under consideration be continued for a reasonable period of time in order for staff to prepare a new set of proposed findings consistent with the evidence which has been presented and the decision which is anticipated. 8) Rules of Evidence Council hearings need not be conducted according to formal rules of evidence. Any relevant evidence may be considered if it is the sort of evidence upon which responsible persons rely in the conduct of serious affairs. The presiding officer may exclude irrelevant or redundant testimony and may make such other rulings as may be necessary for the orderly conduct of the proceedings while ensuring basic fairness and full consideration of the issues involved. Evidentiary objections shall be deemed waived unless made in a timely fashion before the Council. Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 45  Packet Pg. 222 of 263  29 City Council Protocols and Procedures Handbook 9) Council Members Who are Absent During Part of a Hearing A Council member who is absent from any portion of a hearing conducted by the Council may vote on the matter provided that he or she has watched the video record of the entire portion of the hearing from which he or she was absent and if she or he has examined all of the exhibits presented during the portion of the hearing from which he or she was absent. Council members who were absent should state for the record that they have reviewed the proceedings and materials. (b) Presenting at Quasi-Judicial Hearings In the case of a quasi-judicial hearing, single applicants and appellants shall be given 10 minutes for their opening presentation and 3 minutes for rebuttal before the hearing is closed. In the case of a quasi-judicial hearing for which there are two or more appellants, the time allowed for presentation and rebuttal shall be divided among all appellants, and the total time allowed for all appellants shall be a total of twenty minutes for the opening presentation and six minutes for rebuttal before the hearing is closed; however, each individual appellant shall be given a minimum of 5 minutes for presentation and 3 minutes for rebuttal. In the event a request is made and the need for additional time is clearly established, the Presiding Officer shall independently, or may upon advice of the City Attorney, grant sufficient additional time to allow an adequate presentation by the applicant or appellant. (c) Submittal of Materials Directly to Council If Council Members receive materials related to a quasi-judicial agenda item they should notify the City Clerk and the City Manager as soon as possible so that the materials can be placed in the official record and distributed to all Council members, parties to the proceeding, staff and the public. ** * SECTION 5 - HOW THE PUBLIC ENGAGES WITH THE CITY COUNCIL 5.1 Public Participation During City Council Meetings Overview The Council welcomes members of the public to participate in meetings through public comment opportunities. It is the policy of the Council to assure that members of the public have the opportunity to speak to any regular or special meeting agenda item before final action. These rules are intended to enhance public participation and Council debate so that the best possible decisions can be made for Palo Alto. Palo Alto has a long and proud tradition of open government and civil, intelligent public discourse. Open government meetings must allow everyone to be heard without fear of cheers or jeers. For these reasons, the Council takes these rules seriously. Disruptive or unruly behavior in violation of the law can result in removal from the Council meeting and/or arrest and prosecution. Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 46  Packet Pg. 223 of 263  30 City Council Protocols and Procedures Handbook (a) Access to Meetings 1) In-Person and Remote Participation Council meetings are available in person in the Council Chambers and through an online meeting platform. Members of the public are welcome to attend the meeting in person or to join the online meeting platform. 2) Translators Speakers may bring a translator as needed and will be allotted additional time, as appropriate. 3) ADA Access Palo Alto makes every reasonable effort to accommodate the needs of the disabled consistent with law. Any provision of these rules may be modified if needed to provide reasonable accommodation. Persons needing assistance should contact: the City Clerk, City of Palo Alto, 650- 329-2571 (voice) or email at City.Clerk@cityofpaloalto.orgCity.Clerk@cityofpaloalto.org. 4) If found feasible by staff, members of the public may be given the opportunity to activate their personal video during their public comments. (b) Summary of Rules for Public Participation Every regular Council agenda has two different kinds of opportunities for the public to speak. The first is during General Public Comment. The second is during the public comment or public hearing portion of each agenda item. 1) General Public Comment This part of the meeting is provided so that the public can speak to any subject that is in the Council’s jurisdiction, when there is no item listed on the agenda on that topic. The Council limits the total time to up to 30 minutes per meeting for General Public Comment. State law does not permit the Council to act on or discuss an item raised at that meeting in General Public Comment. Council members shall not enter into debate with speakers, but Council members may ask brief clarifying questions and may ask City staff to follow up on any concerns raised. 2) Public comment or public hearing portion of each agenda Item The Brown Act requires the opportunity for public comment on all listed agenda items, except ceremonial items, procedural items (Agenda Changes and Deletions) and brief announcements (City Manager Comments and Council Member Questions, Comments and Announcements). Public comments or testimony must be related to the matter under consideration. (c) Time Limits 1) Individual Speakers The presiding officer may announce the time that each speaker may use. The Council generally allows 3 minutes per speaker, but a shorter time may be designated when there are many speakers, numerous items on the agenda, or items anticipated to be lengthy. For example, if there are fewer than 10 speakers, the presiding officer may allow speakers 3 Commented [GC2]: Staff investigated this and found that it is possible to enable video for members of the public. If the Council still desires to see this happen, it will require staff training for those running the back / virtual end of the meeting. Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 47  Packet Pg. 224 of 263  31 City Council Protocols and Procedures Handbook minutes to speak. Or if there are more than 10 speakers, then the presiding officer may choose to reduce the time for each speaker. 2) Spokesperson for a Group When a group of people wishes to address the Council on the same subject matter, they may designate a spokesperson to address the Council. Spokespersons are subject to the same time limits as other speakers, except that spokespersons who are representing a group of five or more people who have requested to speak and are verified as present in the Council Chambers or online will be allowed 10 minutes and will, to the extent practical, be called upon ahead of individual speakers. If the presiding officer reduces the speaking time for individual speakers, the total speaking time for a spokesperson will also be reduced as determined by the presiding officer. (d) Gaining Permission to Speak Any person who wants to make a spoken public comment on an item on the Council agenda can do so if they are attending either in person or virtually. If attending in person, members of the public should fill out a speaker card and hand it in to the City Clerk prior to the end of the staff presentation. Members of the public participating virtually should use the “raise hand” function in the online meeting platform, or if participating via phone, hit *9 to notify the Clerk that they wish to speak. The Clerk will provide the names of the speakers to the Mayor or Vice Mayor so that the speakers can be identified and organized in an orderly way. The presiding officer will endeavor to identify in advance the time when public comment cards will no longer be accepted. (e) Public Decorum During Meeting The presiding officer at Council meetings (usually the Mayor or Vice-Mayor) is authorized and required to “preserve strict order and decorum.” (PAMC section 2.04.080(b).) This is important in order to assure a fair opportunity for everyone to participate in an open and civil setting. 1) No person, other than a Council member and the person having the floor, shall be permitted to speak without the permission of the presiding officer. 2) All remarks should be addressed to the Council as a body and not to any individual member or staff person. 3) No person, besides staff or the Council, shall enter the staff area of the Council dais without the permission of the presiding officer or appropriate Council Appointed Officer. 4) The Palo Alto Municipal Code makes it unlawful for any person to: (1) Disrupt the conduct of a meeting; (2) Make threats against any person or against public order and security while in the Council Chambers; (3) Use the Council Chambers during meetings for any purpose other than participation in or observation of City Council Meetings. Any Council Member may appeal the presiding officer’s decision on a decorum violation to the full Council. Decorum violations are a misdemeanor and may lead to a person being removed from the Council Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 48  Packet Pg. 225 of 263  32 City Council Protocols and Procedures Handbook meeting. (PAMC sections 2.04.120, 2.04.150.) (f) Record of Speakers 1) Persons wishing to address the Council within the meeting room, shall use the microphone provided for the public. All public speakers, whether in person or virtual participants shall speak in a recordable tone, either personally or with assistance, if necessary. 2) Speakers are requested to state their name but cannot be compelled to do so as a condition of addressing the Council. (g) End of Public Comment After a Council Motion Following the time for public input and once the matter is returned to the Council no person shall address the Council without first securing the permission of the presiding officer to do so, subject to approval of the City Attorney with respect to any hearing required by law. *** SECTION 6 - CITY COUNCIL QUESTIONS ON AGENDA-RELATED ITEMS In order to facilitate open government, all Council Members should make decisions with the same information from Staff on agendized or soon-to-be agendized items (i.e., items on the tentative agenda or in a Council Committee). The Council adopted protocols provide a framework for the policy on e-mail communications between Council members and staff on agenda-related items, including the following: 6.1 Submit Questions on Council Agenda Items Ahead of the Meeting In order to focus the Council meetings on consideration of policy issues and to maintain an open forum for public discussion, questions which focus on the policy aspects of agenda items should be discussed at the Council meeting rather than in one-on-one communications with staff prior to the meetings. Any clarifications or technical questions that can be readily answered can be handled before the meeting. Council members are encouraged to submit their questions on agenda items to the City Manager or other appropriate Council Appointed Officer by 5:00 p.m. the Wednesday prior to the meeting so staff can be prepared to respond before or at the Council meeting. If a staff report is incomplete by 5:00 p.m. Thursday, there will be an extension to submit Council questions until 5:00 p.m. Friday. Council members are strongly discouraged from asking questions already addressed in the staff report. 6.2 City Council emails for Agenda-Related Items Procedure (a)Council members should direct any questions on staff reports and agenda items only to the City Manager or designee. Questions on reports from the City Auditor, City Attorney, or City Clerk should be directed to the appropriate Council Appointed Officer. (b)Council members should submit questions on agenda items no later than 5 p.m. on the Wednesday prior to the Council meeting at which the item will be discussed. Staff will make best reasonable efforts to post written responses to timely-submitted questions by Thursday 5 p.m. Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 49  Packet Pg. 226 of 263  33 City Council Protocols and Procedures Handbook Any questions received after 5 p.m. on the Wednesday before the meeting may be responded to via e-mail, or alternatively, will be responded to at the Council meeting. (c)Staff will not engage in “dialogues” with individual Council members regarding questions; however, follow-up questions to initial questions will be responded to at the Council meeting. (d)Staff will give highest priority to responding prior to the Council meeting via e-mail only on items on the Consent Agenda. Questions which address the policy aspects of the item on the Council agenda will not be responded to prior to the meeting, although Staff welcomes such questions in advance of the meeting in order to prepare for the Council and public discussion. Technical and clarifying questions on non-Consent Calendar items will be responded to as time permits. (e)If the staff will be responding to a Council members Consent Agenda question at the meeting rather responding to the question via e-mail, Staff will inform the Council member as early as possible after receipt of the question(s). (f)Questions and all staff-prepared responses will be forwarded to all Council members as well as posted online for public review of Council agenda questions and staff responses. Staff will include the name of the Council member posing the questions in the “subject” field of the e-mail response. (g)Copies of all Council member agenda questions and staff responses will be emailed to the Council p and posted publicly on the meeting agenda. If staff responses are not released until the meeting date, they will be provided in printed form at the dais. *** SECTION 7 – COUNCIL VALUES AND ANNUAL COUNCIL PRIORITIES (a) Council Values In November 2022, the Council adopted a set of values as described here: The Palo Alto City Council holds these values to help guide decisions that: 1) Balance revenues and expenses, now and in the future. 2) Are environmentally sustainable. 3) Integrate equity into our decisions, considering how decisions affect people differently based on their identity or circumstances. 4) Make decisions that create a healthy, safe and welcoming community for all. 5) Safeguard public trust through transparent practices and open communication. 6) Embrace innovation. Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 50  Packet Pg. 227 of 263  34 City Council Protocols and Procedures Handbook (b) Annual Council Priorities Priorities Background and Definition The City Council adopted its first Council priorities in 1986. Each year the City Council reviews its priorities at its Annual Council Retreat. On October 1, 2012 the City Council formally adopted the definition of a Council priority, and the Council’s process and guidelines for selection of priorities. There is a goal of no more than three to four priorities per year and priorities generally have a two- to three-year time limit. Council can identify two to three specific objectives within a priority. A Council priority is defined as a topic that will receive particular, unusual and significant attention during the year. This varies from a Council value which is defined as an enduring goal and intention to guide the work of the City Council. The values (shared above) allow the City Council to maintain these enduring intentions while also selecting annual priorities that reflect shorter- term projects and goals. Purpose The establishment of Council priorities will assist the Council and staff to better allot and utilize time for discussion and decision making. Process In advance of the annual Council Retreat, staff will solicit input from the City Council on the priorities to be reviewed and considered for the following year. 1) Council members may submit up to three priorities. 2) Priorities should be submitted no later than December 1. 3) As applicable, the City Manager will contact newly elected officials for their input by December 1. 4)The City Manager and the City Clerk will solicit for the public to share proposed priorities prior to the Council retreat. The Policy and Services Committee shall recommend to the Council which suggestions if any shall be considered at the City Council retreat. 5) Staff will collect and organize the recommended priorities into a list for Council consideration and provide to Council in the packet for the City Council retreat. 6) If needed, the Policy and Services Committee, each year at its December meeting, shall make recommendations about the process that will be used at the Annual Retreat paying particular attention to the number of priorities suggested by Council members. The recommended process is to be forwarded to Council for adoption in advance of the Council retreat. *** Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 51  Packet Pg. 228 of 263  35 City Council Protocols and Procedures Handbook SECTION 8 - PROCEDURES AND PROTOCOLS REVIEW AND ENFORCEMENT 8.1 Commit to Annual Review of Important Procedural Issues Once each legislative year, the Council will review the Procedures and Protocols Handbook. The Council will not politicize these procedural issues. 8.2 Enforcement Council members have the primary responsibility to assure that these protocols are understood and followed, so that the public can continue to have full confidence in the integrity of government. As an expression of the standards of conduct expected by the City for Council members, the protocols are intended to be self-enforcing. They therefore become most effective when members are thoroughly familiar with them and embrace their provisions. For this reason, Council members entering office shall sign a statement affirming they have read and understood the Council protocols. In addition, the protocols shall be annually reviewed by the Policy and Services Committee and updated as necessary. Under circumstances where Council members believe that actions by another Council member are inconsistent with this Handbook and require formal review and potentially action, a public discussion and censure are available steps for review and enforcement. 8.1. Annual Review and Update of the Handbook Once each legislative year, the Policy and Services Committee shall initiate a review and update of the Procedures and Protocols Handbook and may make recommendations to Council. Council will review the Handbook and the recommendations of Policy and Services and approve updates as appropriate. The Council will not politicize these procedural issues. 8.2. Commitment to Follow the Procedures and Protocols Handbook Councilmembers have the primary responsibility to assure that these procedures and protocols are understood and followed, so that the public can continue to have full confidence in the integrity of government. As an expression of the standards of conduct expected by the Council for Councilmembers, the procedures and protocols are intended to be self-enforcing. They are most effective when members are thoroughly familiar with them and embrace their provisions. For this reason, Councilmembers entering office shall sign a statement affirming they have read and understood the Council procedures and protocols. 8.3 Procedures for Enforcement When a concern arises regarding a Councilmember’s conduct, the concerned Councilmember or members are encouraged, where possible, to raise and attempt to resolve the concern at the lowest possible level, such as through one-on-one direct conversations (consistent with the Brown Act) or through the Mayor. Under circumstances where Councilmembers believe that actions by another Councilmember are inconsistent with , and that those actions require formal review and potential Council response, a public discussion and potential Commented [GC3]: This is the proposed language recommended by Policy and Services Committee in October 2023. (2-1 vote). Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 52  Packet Pg. 229 of 263  36 City Council Protocols and Procedures Handbook disciplinary action are available steps for review and enforcement. The following enforcement procedures are intended for serious or ongoing concerns that are not amenable to resolution through informal means. Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 53  Packet Pg. 230 of 263  37 City Council Protocols and Procedures Handbook public discussion of the matter at an upcoming City Council meeting. A Colleagues Memo may initiate a discussion of Councilmember conduct and Council expectations, may propose that Council protocols be clarified or a new protocol be included in this Handbook, or may propose initiation of disciplinary action. Proposed disciplinary actions may include admonition, informal reprimand, direction to correct, and/or censure. (2)If a Colleagues Memo proposes discipline of a Councilmember, the Memo must contain the specific charges on which the proposed discipline is based. Completed Council Colleagues Memos shall be provided to the City Clerk’s staff by noon on the Thursday 11 days prior to the Council meeting that the memo is intended to be agendized, to provide time for the City Clerk to process for the Council packet. The City Clerk will provide a copy of the Colleagues Memo to the Councilmember who is the subject of the memo no later than the Thursday 11 days prior to the meeting at which the memo is agendized. (3)The Councilmember who is the subject of the proposed disciplinary action may address the matter in writing or at the Council meeting or both. If the Councilmember submits written materials, those must be published in a supplemental packet, no later than 72 hours before the meeting. (4)During the Council meeting at which the Colleagues Memo is agendized, the Council will decide, by majority vote, whether: (i)A formal disciplinary hearing should be agendized for a future City Council meeting; (ii)Further investigation of the allegations is required; (iii)Further investigation is not warranted and an admonition should be issued; (iv)Council’s procedures and protocols should be clarified or a new procedure or protocol should be introduced; or (v)No further action is necessary. (5)If the Council determines that further investigation is required, the Mayor (or the Vice Mayor if the Mayor is the subject of the proposed disciplinary action) may designate an ad hoc committee to conduct the investigation. The Council or the ad hoc committee may select an independent investigator to assist in conducting the investigation. The independent investigator would be managed by the ad hoc committee or other official designated by Council. The ad hoc committee shall review the findings of the investigation and arrive at a recommendation to Council. The ad hoc committee should proceed as promptly as reasonably possible. (6)Upon receipt of the report of the ad hoc committee, the City Clerk shall place the matter on the Council's next agenda in order for the Council to receive the committee report and determine appropriate next steps. If the Council decides to set the matter for censure hearing, it shall schedule the hearing as soon as possible but no sooner than three weeks after its determination to hear the matter. Council shall give due consideration to requests from the subject Councilmember for additional time to prepare. The Council Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 54  Packet Pg. 231 of 263  38 City Council Protocols and Procedures Handbook shall not schedule the matter during any previously scheduled excused absence of the subject Councilmember. (7)The Mayor (or the Vice Mayor if the Mayor is the subject of the proposed disciplinary action) will designate a Councilmember responsible for preparing and submitting to the City Clerk a censure resolution and supporting materials. Final materials shall be submitted to the Clerk by noon on the Thursday 11 days prior to the Council meeting that the hearing is intended to be agendized, to provide time for the City Clerk to process the materials for the Council packet. The Councilmember assigned to prepare the materials will submit the draft resolution and supporting materials to the City Attorney’s Office no later than the Thursday 18 days before the hearing, to give the City Attorney’s Office adequate time to review the materials before publication. the Thursday 11 days prior to the Council meeting for which the hearing is agendized (8)The Councilmember who is the subject of the proposed disciplinary action may address the matter in writing or at the hearing or both. If the Councilmember submits written materials, those must be submitted in time to be published in a supplemental packet no later than 72 hours before the hearing. (9)At the disciplinary hearing, the Councilmember who is the subject of the request for disciplinary action shall have the opportunity to rebut the allegations in the censure resolution and to question any known complainants or witnesses if they agree to be questioned. The member subject to the charges may be represented and may have the representative speak or ask questions on their behalf (d)Disciplinary Action. If, at the close of the hearing, a majority of the City Council finds that the subject member's conduct violates federal, state or local law, this Handbook, or any other document adopted by the Council, the Council may take one or more of the following actions: (1)Issue an Admonition. An admonition may be directed to any or all members of the City Council, reminding them that a particular type of behavior is in violation of law or City policy. (2)Issue an Informal Reprimand with possible Direction to Correct. An informal reprimand may be issued to a Councilmember or members based on a particular action or set of actions that the Council determines violates law or City policy but is considered to be not sufficiently serious to require formal censure. The Council may include direction to the subject Councilmember or members to correct the particular behavior or the result of the behavior that violated law or City policy. (3)Adopt a Formal Resolution of Censure, with or without additional sanctions. The City Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 55  Packet Pg. 232 of 263  39 City Council Protocols and Procedures Handbook Council may adopt a resolution of censure based on clear and convincing facts supporting the allegations of misconduct giving rise to the censure. A resolution of censure may include the imposition of sanctions against the Councilmember as a majority of the City Council deems appropriate, as allowed by law. Such sanctions may include, for example, removal from a committee and/or restrictions on City-related travel privileges. Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 56  Packet Pg. 233 of 263  40 City Council Protocols and Procedures Handbook PART II: CITY COUNCIL PROTOCOLS The citizens, businesses and organizations of the city are entitled to have fair, ethical and accountable local government, which has earned the public’s full confidence for integrity. To this end, the City Council has adopted Council Protocols and this Code of Ethics for members of the City Council to assure public confidence in the integrity of local government and its effective and fair operation. SECTION 1 – CITY COUNCIL CONDUCT 1.1 Positive Work Place Environment Members shall support the maintenance of a positive and constructive work place environment for City employees and for citizens and businesses dealing with the City. Members shall recognize their special role in dealings with City employees to in no way create the perception of inappropriate direction to staff. 1.2 Comply with Law Members shall comply with the laws of the nation, the State of California and the City in the performance of their public duties. These laws include but are not limited to: the United States and California constitutions, the city Charter, laws pertaining to conflicts of interest, election campaigns, financial disclosures, employer responsibilities and open processes of governments and City ordinances and policies. (a) Respect for Process Members shall perform their duties in accordance with the processes and rules of order established by the City Council governing the deliberation of public policy issues, meaningful involvement of the public and implementation of policy decisions of the City Council by City staff. 1.3 City Council Core Responsibilities (exist. Protocol Sec. 1) All members of the City Council, including those serving as Mayor and Vice Mayor, have equal votes. No Council Member has more power than any other Council Member, and all should be treated with equal respect. (a) All Council Members: 1) Demonstrate honesty and integrity in every action and statement 2) Comply with both the letter and spirit of the laws and policies affecting the operation of government. 3) Serve as a model of leadership and civility to the community 4) Inspire public confidence in Palo Alto government 5) Work for the common good, not personal interest 6) Prepare in advance of Council meetings and be familiar with issues on the agenda 7) Fully participate in City Council meetings and other public forums while demonstrating respect, kindness, consideration, and courtesy to others Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 57  Packet Pg. 234 of 263  41 City Council Protocols and Procedures Handbook 8) Do not politicize procedural matters such as minutes approval or agenda order for strategic purposes 9) Participate in scheduled activities to increase Council effectiveness 10) Review Council procedures, such as these Council Protocols, at least annually 11) Represent the City at ceremonial functions at the request of the Mayor 12) Be responsible for the highest standards of respect, civility and honesty in ensuring the effective maintenance of intergovernmental relations 13) Respect the proper roles of elected officials and City staff in ensuring open and effective government 14) Provide contact information to the City Clerk in case an emergency or urgent situation arises while the Council Member is out of town 1.4 General Member Conduct Councils are composed of individuals with a wide variety of backgrounds, personalities, values, opinions, and goals. Despite this diversity, all have chosen to serve in public office in order to improve the quality of life in the community. In all cases, this common goal should be acknowledged even as Council may "agree to disagree" on contentious issues. (a) Conduct of Members The professional and personal conduct of members must be above reproach and avoid even the appearance of impropriety. Members shall refrain from abusive conduct, personal charges or verbal attacks upon the character or motives of other members of the Council, boards and commissions, the staff or the public. Rude and unprofessional behavior are also unacceptable. Council members are expected to share factual information during meetings and within the public domain and Council members should refrain from repeating false and misleading information. (b)In Public Meetings 1) Use Formal Titles The Council should refer to one another formally during Council meetings as Mayor, Vice Mayor or Council Member followed by the individual’s last name. 2) Practice Civility and Decorum in Discussions and Debate Difficult questions, tough challenges to a particular point of view, and criticism of ideas and information are legitimate elements of a free democracy in action. Be respectful of diverse opinions. 3) Honor the Role of the Presiding Officer in Maintaining Order and Equity Respect the Chair's efforts to focus discussion on current agenda items. Objections to the Chair's actions should be voiced politely and with reason, following the parliamentary procedures outlined in the City Council Procedural Rules. 4) Demonstrate Effective Problem-Solving Approaches Council members have a public stage to show how individuals with disparate points of view can find common ground and seek a compromise that benefits the community as a whole. Council members are role models for residents, businesspeople and other stakeholders involved in public debate. Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 58  Packet Pg. 235 of 263  42 City Council Protocols and Procedures Handbook 5) Be Respectful of Other People's Time Stay focused and act efficiently during public meetings. (c) In Private Encounters 1) Treat Others as You Would Like to be Treated Ask yourself how you would like to be treated in similar circumstances, and then treat the other person that way. 1.5 Decisions Based on Merit Members shall base their decisions on the merits and substance of the matter at hand, rather than on unrelated considerations. 1.6 Advocacy (a) Representation of Private Interests In keeping with their role as stewards of the public interest, members of Council shall not appear on behalf of the private interests of third parties before the Council or any other board, commission or proceeding of the City, nor shall members of boards and commissions appear before their own bodies or before the Council on behalf of the private interests of third parties on matters related to the areas of service of their bodies. (b) Advocacy Members shall represent the official policies or positions of the City Council, board or commission to the best of their ability when designated as delegates for this purpose. When presenting their individual opinions and positions, members shall explicitly state they do not represent their body or the City, nor will they allow the inference that they do. (c) Council Voting Delegate Authority at Conferences / Annual Meetings The Council may authorize a Council member to act as the voting delegate at conferences or meetings of other bodies, including, but not limited to, the League of California Cities annual conference, National League of Cities conference, and the Association of Bay Area Governments (ABAG) annual meeting. Prior to the conference / meeting, the Council may provide the voting delegate with specific direction on proposed resolutions and other matters. When provided specific direction, the voting delegate’s authority is limited to matters on which the Council has directed the delegate to vote. In the absence of explicit direction, when the Council member is aware of a prior position the Council has taken, the Council member will adopt that position. (d) Be Cautious in Representing City Positions on Issues Before sending correspondence related to a legislative position, check with City staff to see if a position has already been determined. When corresponding with representatives of other governments or constituents remember to indicate, if appropriate, that the views you state are your own and may not represent those of the full Council. As a Council member, it is important to remember to indicate when the views you state are your own versus views which represent those of the full Council. This is relevant whether sending Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 59  Packet Pg. 236 of 263  43 City Council Protocols and Procedures Handbook correspondence related to a legislative position or corresponding with constituents or representatives of other governmental agencies or organizations. Council Members appointed to regional boards, commissions, or agencies shall stay informed of any positions adopted by Council relevant to the jurisdiction of the Board and shall consider such positions along with other pertinent information in carrying out their duties on the regional body. In the case where a Council member is speaking publicly on an issue on which Council has taken a position, and that Council member also serves on a regional body that has also taken a position, , the Council member should clearly state whether they are speaking on behalf of the City or the regional body. (e) Use of City Letterhead Official Mayor/City Council letterhead should only be used for correspondence signed by the Mayor or City Council members when specifically directed by the Council or consistent with prior City Council direction. This applies to the use of any stationery that could be interpreted as official letterhead. 1.7 Council Conduct with City Staff Governance of a City relies on the cooperative efforts of elected officials, who set policy, and City staff, which analyze problems and issues, make recommendations, and implement and administer the Council’s policies. Therefore, every effort should be made to be cooperative and show mutual respect for the contributions made by each individual for the good of the community. (a) Treat All Staff as Professionals Clear, honest communication that respects the abilities, experience, and dignity of each individual is expected. As with your Council colleagues, practice civility and decorum in all interactions with City staff. (b) Channel Communications through the Appropriate Senior City Staff Questions of City staff should be directed only to the City Manager, Assistant City Manager, City Attorney, City Clerk, Assistant City Clerk, City Auditor, Senior Assistant City Attorneys, or Department Heads. The Office of the City Manager should be copied on any request to Department Heads. Council members should not set up meetings with department staff directly, but work through Department Heads, who will attend any meetings with Council members. When in doubt about what staff contact is appropriate, Council members should ask the City Manager for direction. However, nothing in these protocols is intended to hinder the access Council-appointed liaisons (e.g. to the San Francisquito JPA or NCPA) may require in order to fulfill their unique responsibilities. (c) In order to Facilitate Open Government, All Council Members Should Make Decisions with the Same information from Staff on Agendized or Soon- to be- Agendized Items (Items on the Tentative Agenda or in a Council Committee) (d)Never Publicly Criticize an Individual Employee, Including Council Appointed Officers. Criticism is differentiated from questioning Facts or the opinion of staff. All critical comments about staff performance should only be made to the City Manager through private correspondence or Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 60  Packet Pg. 237 of 263  44 City Council Protocols and Procedures Handbook conversation. Comments about staff in the office of the City Attorney, City Auditor or City Clerk should be made directly to these CAOs through private correspondence or conversation. (e) Do Not Attend Staff Meetings Unless Requested by Staff Even if the Council member does not say anything, the Council member’s presence may imply support, show partiality, intimidate staff, or hampers staff’s ability to do its job objectively. (f) Depend upon the Staff to Respond to Citizen Concerns and Complaints It is the role of Council members to pass on concerns and complaints on behalf of their constituents. It is not, however, appropriate to pressure staff to solve a problem in a particular way. Refer citizen complaints to the appropriate senior staff member, according to the protocol on channeling communications. The senior staff member should respond according to the Policy and Procedure for Responding to Customer Complaints. Senior staff is responsible for making sure the Council Member knows how the complaint was resolved. (g) Do not Solicit Political Support from Staff The City Charter states that “Neither the city manager or any other person in the employment of the city shall take part in securing or shall contribute any money toward the nomination or election of any candidate for a municipal office.” In addition, some professionals (e.g., City Manager and the Assistant City Manager) have professional codes of ethics, which preclude politically partisan activities or activities that give the appearance of political partisanship. Council members shall refrain from coercing staff in making recommendations to the Council as a whole. (h) Use of Public Resources Council members shall not use public resources, such as City staff time, equipment, supplies or facilities, for private gain or personal purposes. 1.8 Use of Staff Time (a) Do Not Get Involved in Administrative Functions The key provisions on Council-staff relations found in section 2.04.170 of the Palo Alto Municipal Code: “Neither the council nor any of its committees or members shall direct, request or attempt to influence, either directly or indirectly, the appointment of any person to office or employment by the city manager or in any manner interfere with the city manager or prevent the city manager from exercising individual judgment in the appointment of officers and employees in the administrative service. Except for the purpose of inquiry, the council and its members shall deal with the administrative service solely through the city manager, and neither the council nor any member thereof shall give orders to any of the subordinates of the city manager, either publicly or privately.” (b) Respect the “One Hour” Rule for Staff Work Requests for staff support should be made to the appropriate senior staff member, according to the protocol for channeling communications. Any request, which would require more than one hour of staff time to research a problem or prepare a response, will need to be approved by the full council to ensure that staff resources are allocated in accordance with overall council priorities. Once Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 61  Packet Pg. 238 of 263  45 City Council Protocols and Procedures Handbook notified that a request for information or staff support would require more than one hour, the Council Member may request that the City Manager place the request on an upcoming Council agenda. The 1-hour rule applies to all Council members equally. *** SECTION 2 - CITY COUNCIL CONDUCT WITH PALO ALTO BOARDS AND COMMISSIONS The City has established several Boards and Commissions as a means of gathering more community input. Citizens who serve on Boards and Commissions become more involved in government and serve as advisors to the City Council. They are a valuable resource to the City’s leadership and should be treated with appreciation and respect. Council members serve as liaisons to Boards and Commissions, according to appointments made by the Mayor, and in this role are expected to represent the full Council in providing guidance on Council processes or actions to the Board or Commission. Refrain from speaking for the full Council on matters for which the full council has not yet taken a policy position. In other instances, Council members may attend Board or Commission meetings as individuals, and should follow these protocols: 2.1 If Attending a Board or Commission Meeting, Identify Your Comments as Personal Views or Opinions. Council members may attend any Board or Commission meeting, which are always open to any member of the public. Any public comments by a Council Member at a Board or Commission meeting, when that Council Member is not the liaison to the Board or Commission should make a point to clearly state it is an individual opinion and not a representation of the feelings of the entire City Council. 2.2 Refrain from Lobbying Board and Commission Members It is inappropriate for a Council member to contact a Board or Commission member to lobby on behalf of an individual, business, or developer, or to advocate a particular policy perspective. It is acceptable for Council members to contact Board or Commission members in order to clarify a position taken by the Board or Commission. It is inappropriate for a Council member to contact a Board or Commission member to lobby on behalf of an individual, business, or developer, or to advocate a particular policy perspective. It is acceptable for Council members to contact Board or Commission members in order to better understand a position taken by the Board or Commission or the status of an ongoing matter. 2.3 Remember that Boards and Commissions are Advisory to the Council as a Whole, not as Individual Council Members The City Council appoints individuals to serve on Boards and Commissions, and it is the responsibility of Boards and Commissions to follow policy established by the Council. Council members should not feel they have the power or right to unduly influence Board and Commission members. A Board and Commission appointment should not be used as a political reward. 2.4 Concerns about an Individual Board or Commission Member Should be Pursued with Tact Commented [GC4]: P&S unanimous approval on June 13, 2023 Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 62  Packet Pg. 239 of 263  46 City Council Protocols and Procedures Handbook If a Council member has concerns with a particular Board or Commission member fulfilling his or her roles and responsibilities and is comfortable in talking with that individual privately, the Council member should do so. If needed, the Councilmember may involve a Chair of a commission or the liaison to the commission if there is one. Alternatively, or if the problem is not resolved, the Council Mmember should consult with the Mayor, who may address the issue to the Council as appropriate. 2.5 Be Respectful of Diverse Opinions A primary role of Boards and Commissions is to represent many points of view in the community and to provide the Council with advice based on a full spectrum of concerns and perspectives. Council members may have a closer working relationship with some individuals serving on Boards and Commissions but must be fair to and respectful of all citizens serving on Boards and Commissions. 2.6 Keep Political Support Away from Public Forums Board and Commission members may offer political support to a Council member, but not in a public forum while conducting official duties. Conversely, Council members may support Board and Commission members who are running for office, but not in an official forum in their capacity as a Council member. 2.7 Maintain an Active Liaison Relationship Appointed Council liaisons or alternates are encouraged to attend all regularly scheduled meetings of their assigned Board or Commission. 2.8 Role of Council Liaison to Board or Commission The role of Council liaison to a Board or Commission is to share prior Council discussions and actions on issues as applicable and assist the Board or Commission in understanding likely Council perspectives on issues as well as how the Board or Commission might support Council decision- making. The role of Council liaison to a Board or Commission is to be a point of contact with Council and a resource to the Board and Commission, as well as to share prior Council discussions and actions on issues as applicable, and assist the Board or Commission in understanding how it might inform Council decision-making. The liaison is expected to attend Board or Commission meetings as requested by the body. *** SECTION 3 - STAFF CONDUCT WITH CITY COUNCIL 3.1 Respond to Council Questions as Fully and as Expeditiously as is Practical The protocol for staff time devoted to research and response is in application here. If a Council Member forwards a complaint or service request to a department head or a Council Appointed Officer, there shall be follow-through with the Council Member as to the outcome. 3.2 Respect the Role of Council Members as Policy Makers for the City Staff is expected to provide its best professional recommendations on issues. Staff should not try to determine Council support for particular positions or recommendations in order to craft Commented [GC5]: P&S unanimous approval on June 13, 2023 Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 63  Packet Pg. 240 of 263  47 City Council Protocols and Procedures Handbook recommendations. The Council must be able to depend upon the staff to make independent recommendations. Staff should provide information about alternatives to staff recommendations as appropriate, as well as pros and cons for staff recommendations and alternatives 3.3 Demonstrate Professionalism and Non-Partisanship in all Interactions with the Community and in Public Meetings 3.4 It is Important for the Staff to Demonstrate Respect for the Council at all Times All Council members Should be Treated Equally *** SECTION 4 - CITY COUNCIL AND BOARDS AND COMMISSIONS POLICY FOR TRAVEL AND MISCELLANEOUS EXPENSE REIMBURSEMENT 4.1 Mayor and Vice Mayor Additional Compensation The Mayor shall receive $150 monthly and the Vice Mayor $100 monthly to defray additional expenses of these offices. 4.2 Miscellaneous Expenditures (a) Expenditure of City Council Contingency Funds Requests for expenditure of Council Contingency Funds up to $10,000 should be made to the Mayor and Vice Mayor. Where the Mayor and Vice Mayor agree with the request, it will be announced during Council Member Questions, Comments and Announcements. The expenditure will be considered approved unless two or more Council members request additional information or discussion, in which case the expenditure will be agendized at a future meeting. Expenditures over $10,000 require action by Council motions, which shall be by Colleagues Memo placed on Consent, or as part of an agendized item. (b) City Purchase of Tickets or Sponsorship of Non-Profit Organization Events The City Manager may purchase tickets or sponsor events by non-profit organizations, subject to budget availability, under any of the following circumstances: 1) where the event serves a City educational purpose, 2) recognition for work done by staff (not including elected or appointed officials), or 3) expending budget allocations specifically intended for event attendance. (c) Expenditure for Annual Holiday Event Expenditures of up to $1,500 from the Council Special Events budget may be directed to be expended from an annual holiday celebration, subject to budget availability for attendance by Council members, executive leadership staff, and community leaders. Event details will be coordinated by the Mayor and facilitated by staff. 4.3 Council and Boards and Commission Travel Policy Council member travel expenses and reimbursements will adhere to the Citywide Travel Arrangements and Expense Reimbursement Policy (Administrative Policy 1-02/ASD) Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 64  Packet Pg. 241 of 263  48 City Council Protocols and Procedures Handbook This The following additional policy is set by the City Council and applies to Council members and to Board and Commissions members. In reimbursing travel and miscellaneous expenses, a municipal purpose requiring the expenditure of public funds must be in evidence; also, in accordance with the Charter and Municipal Code, such expenditures must be from authorized appropriations. Council members are limited to six (6) times per year for travel reimbursements, subject to budget availability. Council member travel will be approved by the Mayor. (a)Travel Related to Sister Cities, Sibling City, or shared interests with another city abroad 1) Given the City’s relationship with many Sister Cities and a Sibling City, there may be a need to send a Palo Alto delegation to another city abroad or within the United States related to Sister Cities, Sibling City, or shared interests between Palo Alto and another city abroad. The following will apply when a Council member travels abroad or domestically on behalf of the City as part of Sister City, Sibling City, or shared interests efforts. Note, such a trip would count towards the six (6) total tips cap described above. The proposed travel must include an approved Pre-Travel Authorization Request for travel that explains how the travel will advance the City's interests or policy/Council objectives and a consideration of the cost/value relationship of the trip. The request should also explain why virtual attendance is not effective in that circumstance. The Council will be responsible for ensuring that visits to any individual city will be reasonably spaced apart. The Pre-Travel Authorization Request will be approved by the Mayor. If the Mayor is the requested traveler, the request will be approved by the Vice Mayor. 2) Annually, the total amount the City Council will budget for international and domestic travel related to Sister Cities, Sibling City, or shared interests between Palo Alto and another city abroad will be capped at $40,000 with reasonable annual adjustments beyond 2024 to account for inflation. This funding will be distributed equitably amongst Council members who meet the guidelines above and express an interest to travel. (b)Support Services The City Clerk’s Office makes travel arrangements for Council members. This service includes conference registration, hotel reservations, per diem advances and reimbursement of unforeseen expenses. The department liaison for each board and commission will be responsible for arrangements for Officials. (c) Activities Not Considered Reimbursable 1) Voluntary attendance at any conference or meeting, not representing the City. A) Meetings of social or service organizations. 2) Meetings of voter groups or with individual citizens concerned with agenda items. 3) Election campaign activities. 4) Alcohol and entertainment expenses. Commented [GC6]: Section approved by P&S on Oct 10, 2023 (vote 2-1) Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 65  Packet Pg. 242 of 263  49 City Council Protocols and Procedures Handbook 5)Personal portion of the trip and other non-mileage automobile expenses. (d) Reports to Council Council members and officials shall provide brief verbal reports on meetings attended at the City’s expense at the next regular Council/Board/Commission meeting. If multiple Officials attended, a joint report may be made. All related documents are subject to the Public Records Act and can be periodically reviewed by auditors. (e) Violation of This Policy Use of public resources or falsifying expense reports is in violation of this policy and may result in any or all of the following: 1) Loss of reimbursement privileges 2) A demand for restitution to the City 3) The City reporting the expenses as income to the elected or appointed Official to state and federal tax authorities 4) Civil penalties of up to $1000 per day and three times the value of the resources used 5) Prosecution for misuse of public resources *** SECTION 5 - Confidentiality, Conflicts of Interest, Gifts And Favors Members shall respect the confidentiality of information concerning the property, personnel or affairs of the City. They shall neither disclose confidential information without proper legal authorization, nor use such information to advance their personal, financial or other private interests. There are many State laws regarding confidentiality, conflicts of Interest, and gifts and favors. Council members should stay apprised of and comply with State law on these topics. Resource Links to be added here. Item 13 Attachment B - Draft Updated Procedures and Protocols Handbook with Committee Recommendations November 2023        Item 13: Staff Report Pg. 66  Packet Pg. 243 of 263  City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Manager Meeting Date: February 5, 2024 Report #:2312-2314 TITLE Policy and Services Committee Recommendation to the City Council to Approve a new Friendship Cities Program in Palo Alto. CEQA Status – Not a Project RECOMMENDATION The Policy and Services Committee recommends that the City Council approve a new Friendship Cities program with the provisions recommended in the original colleagues’ memo and a few other new provisions related to reevaluation of friendship cities as well as sister cities. If the City Council approves the new program, staff will update and finalize the proposed Friendship Cities Agreement document to reflect adopted program elements. BACKGROUND On June 19, 2023, the City Council received and discussed a Colleagues’ Memo (Attachment A) related to the idea of Friendship Cities. The Colleagues’ Memo recommendation was for the City Council to be able to extend the authority to enter into Friendship City relationships with new communities around the world. Friendship Cities are defined by Sister Cities International, the governing body of Palo Alto’s Sister Cities, as the following (also included in the Colleagues‘ Memo): The terms “sister city” and “friendship city” sometimes have different meanings. Generally speaking, friendship cities are less formal than sister cities. In some cities, “friendship city” is often used as a first stage in the relationship, and after it is strengthened, and the partners are sure they want a long-term relationship they will become “sister cities.” At the June 19 City Council meeting, the City Council voted to refer the Colleagues Memo for Approval of a “Friendship City” Program to Policy and Services Committee for further discussion and to review the staffing impacts of this program. The Colleagues’ Memo contained the anticipated Fiscal and Resource Impact and that information is copied below for convenience to the full City Council discussion of the Policy and Services Committee recommendation. Item 14 Item 14 Staff Report        Item 14: Staff Report Pg. 1  Packet Pg. 244 of 263  The Policy and Services Committee discussed the resource impacts aspect of a Friendship Cities program (per the City Council referral in June) at the October 2023 meeting and voted 2-1 with the following motion: FISCAL/RESOURCE IMPACT •Staff resources to coordinate requests for new Friendship Cities. Staff resources to coordinate details for formal agreement signings and celebrations. •Staff coordination and participation by applicable staff (City Manager’s Office, City Clerk’s Office, and various departments with topic expertise) in relationship building, as well as development and production of discussion topics before, during, and after delegation visits. •Communications efforts to coordinate with Friendship Cities and Neighbors Abroad representatives to publicize events and other milestones. •Staff resources to coordinate Councilmember-related efforts for the Friendship City, including developing any formal letters, commendations, or gifts needed related to the Friendship City and associated logistics. •Providing financial and staff support for City financial resources provided to Neighbors Abroad for reception hosting for visiting delegations. Item 14 Item 14 Staff Report        Item 14: Staff Report Pg. 2  Packet Pg. 245 of 263  away from other council priorities and assignments to accomplish these tasks. This includes the staff and City Council time that may be needed to develop this program. STAKEHOLDER ENGAGEMENT Item 14 Item 14 Staff Report        Item 14: Staff Report Pg. 3  Packet Pg. 246 of 263  ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by the California Environmental Quality Act (CEQA) because approval of a Friendship Cities program 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: Friendship Cities Colleagues’ Memo – June 2023 APPROVED BY: Ed Shikada, City Manager Item 14 Item 14 Staff Report        Item 14: Staff Report Pg. 4  Packet Pg. 247 of 263  CITY COUNCIL Colleague’s Memo Sponsor(s): Council Member Burt, Mayor Kou, and Vice Mayor Stone Subject: Authority to Form Friendship Cities Meeting Date: June 19, 2023 Report #: 2306-1672 TITLE Colleagues Memo: Approval of a “Friendship City” Program BACKGROUND AND DISCUSSION: Palo Alto has long benefited from its Sister City and Sibling City relationships through sustainability, economic development, innovation practices, student exchanges, academia, and cultural relationships. International engagement with Palo Alto is frequent at multiple levels including government, business, community, and education. When a local government has sought to formalize an interchange, the approach has been through a formal Sister City agreement, and more recently a domestic Sibling City agreement. City Staff and Council Members periodically receive invitations to develop relationships from cities. However, these relationships have not been pursued because Council action, staff and Neighbors Abroad support and resources would be required. In addition to sister-city relationships, some U.S. cities have developed a “Friendship City” program including Menlo Park, Redwood City, Cupertino, San Antonio TX, and Portsmouth NH. This is a more modest engagement between cities that does not require significant commitments by the city or local non-profit. This model is recognized also by Sister Cities International, the governing body of Palo Alto’s Sister Cities: The terms “sister city” and “friendship city” sometimes have different meanings. Generally speaking, friendship cities are less formal than sister cities. In some cities, “friendship city” is often used as a first stage in the relationship, and after it is strengthened, and the partners are sure they want a long-term relationship they will become “sister cities.” Palo Alto’s international engagement is supported by Neighbors Abroad, Inc. Neighbors Abroad is a 501(c)(3) organization that, with annual funding from the City of Palo Alto together with donations from the community, supports international engagement. Their Board has endorsed the development of Friendship City agreements within the following parameters: Item 14 Attachment A - Friendship Cities Colleagues’ Memo - June 2023        Item 14: Staff Report Pg. 5  Packet Pg. 248 of 263  “To develop a revenue neutral relationship for a fixed term called a Friendship City, led by a community member who will take responsibility for the relationship and become a board member of Neighbors Abroad.” After discussions with Neighbors Abroad, as well as reviewing Friendship City programs nationally, the following framework is proposed for a Friendship City agreement with Palo Alto: - A local volunteer that would commit across the term of the Friendship City; - A statement document that sets a description of the prospective Friendship City, expected activities with the Friendship City, and a rationale for formation which comports with Neighbors Abroad’s policy for Friendship Cities; - Endorsement by the President of Neighbors Abroad; - Acceptance by the City Council member serving as liaison to Neighbors Abroad; and - Endorsement by the Mayor and Vice-Mayor, and Council approval of the Agreement after placement on the Consent Calendar. Different from a Sister City relationship, a Friendship City Agreement would be limited to three years, subject to Council renewal. The Agreement allows for a test of time, and if the relationship waivers, the agreement would not be renewed. A draft agreement is attached. RECOMMENDATION The City Council is requested to extend the authority to enter into Friendship City relationships subject to the conditions in this Colleagues’ Memo. Upon execution of any Friendship City Agreement, the Agreement shall be provided to Neighbors Abroad to support implementation. FISCAL/RESOURCE IMPACT The fiscal and resource impact for this proposal can vary widely, and as such staff believes it should not be considered insignificant nor fully defined at this time. Anticipated activities or resources likely needed include the following: - Staff resources to coordinate requests for new Friendship Cities. Staff resources to coordinate details for formal agreement signings and celebrations. - Staff coordination and participation by applicable staff (City Manager’s Office, City Clerk’s Office, and various departments with topic expertise) in relationship building, as well as development and production of discussion topics before, during, and after delegation visits. - Communications efforts to coordinate with Friendship Cities and Neighbors Abroad representatives to publicize events and other milestones. - Staff resources to coordinate Councilmember-related efforts for the Friendship City, including developing any formal letters, commendations, or gifts needed related to the Friendship City and associated logistics. - Providing financial and staff support for City financial resources provided to Neighbors Abroad for reception hosting for visiting delegations. Item 14 Attachment A - Friendship Cities Colleagues’ Memo - June 2023        Item 14: Staff Report Pg. 6  Packet Pg. 249 of 263  The actual amount of time needed for the items above varies. Without dedicated staffing and budget allocation for international relations work, these items are spread among existing staff. Depending on the amount of time needed for these activities, existing staff must redirect time away from other council priorities and assignments to accomplish these tasks. This includes the staff and City Council time that may be needed to develop this program. As noted above, Friendship City relationships are a first stage in connecting two cities together. For the City of Palo Alto, most of the existing eight (8) Sister City and one (1) Sibling City relationships started off as something informal either between Palo Alto neighbors and colleagues in an international city, or as an early agreement to test a relationship before formalizing. Without clarity as to what Friendship Cities should expect from Palo Alto over time, and the anticipated guidance for expansion of Palo Alto’s program, the City should logically expect situations where the Friendship Cities seek to become more formally connected to Palo Alto as additional Sister Cities with the associated resource expectations. Should the Council wish to proceed with growth in international relations activities reflected in the establishment of this new program, staff recommends that the parameters guiding the City’s involvement be set forth in writing through the Council’s Procedures and Protocols Handbook. It would also be prudent to establish appropriate monitoring of international relations activities through a budget line item for this purpose. It should further be noted that the City of Palo Alto receives many inquiries and requests to establish relationships with cities around the world. As such, while Palo Alto may intend only a modest time and other resource allocation to these relationships, these communities often place a high priority to the relationship, and this is reflected in the level of effort, attention, and expense invested into the relationship. This dynamic creates situations where reciprocation is expected and difficult to avoid. ATTACHMENTS Attachment A: Draft Agreement for the Establishment of a Friendship City Item 14 Attachment A - Friendship Cities Colleagues’ Memo - June 2023        Item 14: Staff Report Pg. 7  Packet Pg. 250 of 263  ATTACHMENT AN AGREEMENT FOR THE ESTABLISHMENT OF A FRIENDSHIP CITY RELATIONSHIP BETWEEN [CITY NAME (COUNTRY)] AND PALO ALTO, CALIFORNIA (USA) In accordance with authorization from the City Council of Palo Alto and the approval of the Mayor of Palo Alto, California, and the [City Country], it is declared that a “Friendship City Agreement” between the two cities is established for the following purposes: (1) To promote and expand the mutually beneficial cooperation between the people of Palo Alto and [City] (2) To promote (more specific elements) This Friendship City Agreement is effective when this document has been approved by the Palo Alto City Council and duly executed by the Mayor of Palo Alto, and executed by the Mayor of [xxx], and shall remain in effect for three years from the effective date. The Agreement may be extended upon mutual agreement of the cities, approved in the same manner as the initial Agreement. ______________ [name] Mayor, City of Palo Alto California, USA _______________ [name} Mayor, [City] State, Country Dated. ## Item 14 Attachment A - Friendship Cities Colleagues’ Memo - June 2023        Item 14: Staff Report Pg. 8  Packet Pg. 251 of 263  City Council Staff Report From: City Manager Report Type: INFORMATION REPORTS Lead Department: Public Works Meeting Date: February 5, 2024 Report #:2312-2384 TITLE Quarterly Informational Report on Sustainability and Climate Action Plan (S/CAP) Implementation; CEQA status – Not a Project RECOMMENDATION No Council action is required. This is an update on Sustainability and Climate Action Plan (S/CAP) Implementation Progress through the fourth quarter of calendar year 2023. This report provides a status update of numerous S/CAP Workplan items. It is provided to give the City Council and public an initial overview of this work since the S/CAP was adopted by Council in June of 2023. EXECUTIVE SUMMARY Consistent with Council’s adoption of “Climate Change & Natural Environment: Protection and Adaptation” as one of the four priorities for calendar year 2023, staff updated the Sustainability and Climate Action Plan (S/CAP) to help the city meet its sustainability goals, including its goals of reducing greenhouse gas (GHG) emissions 80 percent below 1990 levels by 2030 (the “80 x 30” goal) and achieving carbon neutrality by 2030. This is the second quarterly S/CAP Implementation update. The first S/CAP implementation update included progress through Q3 2023 and was introduced in November.1 Highlights of Q4 2023 progress include: •Climate Action o As of December 14, 2023, 208 residents had signed contracts to participate in the full-service Heat Pump Water Heater Pilot Program. In addition, 44 residents installed heat pump water heaters on their own, receiving a rebate from the city. o Design of the first neighborhood upgrade for grid modernization is underway, 1 City Council, November 13, 2023; Agenda Item #11; SR # 2308-1901, https://www.cityofpaloalto.org/files/assets/public/v/1/sustainability/reports/cy2023-q3-informational-report-on- sustianability-and-climate-action-plan-scap.pdf Item 15 Item 15 Staff Report        Item 15: Staff Report Pg. 1  Packet Pg. 252 of 263  with construction expected to start in the beginning of the second quarter of 2024. o Staff presented a draft Reliability and Resiliency strategic plan to the Utilities Advisory Commission (UAC) in December 2023. The UAC recommended it to Council for approval. Staff intends to seek Council acceptance of the plan in early 2024. o The City held five Electric Vehicle (EV) and one e-bike workshops. o As of December 2023, nine multi-family (MF) properties representing 415 housing units (about 4% of all multi-family units in Palo Alto) have installed EV chargers facilitated through the City's EV programs, with another 17 active MF sites in the pipeline representing 955 units, or 8% of Palo Alto multi-family units. o Between October 1, 2023 and December 31, 2023, Palo Alto Link, the city’s eco- friendly rideshare service, provided 12,722 completed rides, averaging 196 completed rides per service day. o The City is recruiting staff to support evaluation of micro-mobility options, including piloting bike/scooter share programs and neighborhood mobility hubs to provide last-mile connections. o The City received delivery of 15 new electric vehicles, including 13 new Chevy Bolt Electric Vehicles, one new electric van for the Airport, and one electric transit van, which replaced internal combustion engine fleet vehicles. There are now 27 EVs in the city fleet, or about 15% of the passenger vehicles and light duty trucks and vans. •Sustainability o Since Q3, the percentage of customers who have accessed the WaterSmart portal, a water management tool which provides residents information about their water consumption and personalized water conservation measures, has increased from 15% to 17%. o Two key updates may affect the scope and direction of Palo Alto’s Sea Level Rise Adaptation Plan. In Q3, a memo from U.S. Army Corps of Engineers (USACE) about shoreline levee improvements was received, potentially impacting funding. Palo Alto and involved entities involved sent a letter to USCAE seeking clarification, with USACE’s response expected in Q1 2024. Additionally, new state legislation, SB272, passed in late 2023, may significantly impact planning efforts. As part of SB 272 implementation, the Bay Conservation and Development Commission will identify subregions and required plan components by the end of 2024. o The City is working to increase the co-benefits of a thriving urban tree canopy, including carbon sequestration, water quality improvements, stormwater capture, and urban heat island reduction. In addition, the effort to establish a baseline for carbon storage of Palo Alto’s urban tree canopy is on track to be completed in 2024. o Work to develop waste prevention outreach tools and technical assistance for the commercial sector is ongoing. The outreach tools and technical assistance program are expected to launch in 2024. Item 15 Item 15 Staff Report        Item 15: Staff Report Pg. 2  Packet Pg. 253 of 263  BACKGROUND In April 2016, the City Council adopted the goal of reducing GHG emissions 80 percent below 1990 levels by 2030 (the “80 x 30” goal),2 and in October 2022 Council adopted the ambitious goal of achieving carbon neutrality by 2030.3 Staff, with community and Council input, referred to the 2016 Sustainability and Climate Action Plan (S/CAP) Framework and 2018-2020 Sustainability Implementation Plan to create a comprehensive S/CAP and Three- Year S/CAP Workplan. In June 2023, Council adopted the 2022 Sustainability and Climate Action Plan,4 certified the Comprehensive Plan Environmental Impact Report Addendum: Update to the Sustainability and Climate Action Plan,5 and accepted the 2023-2025 S/CAP Workplan.6 The S/CAP is an ambitious plan to reduce the city and community’s GHG emissions, while also guiding how Palo Alto uses land and natural resources in ways that ensure quality of life for future generations. The 2022 S/CAP and 2023-2025 S/CAP Work Plan align with one of the four Council Priorities for CY 2023: “Climate Change & Natural Environment: Protection and Adaptation”. In addition, there are several overlapping Council Priority Objectives, the status of which can be found in the 2023 Council Priority Objectives Q4 Report.7 This report references the Council Priority Objectives in parentheses where applicable. ANALYSIS The City is fully committed to a sustainable future. The City owns, operates, and maintains a full-service utilities portfolio that provides electric, natural gas, fiber, water, refuse, and wastewater services to residents and businesses in Palo Alto. Palo Alto’s continued leadership in advancing sustainability commitments has succeeded mainly because of the continued collaboration of community stakeholders, City departments, and the leadership of the City Council. 2 City Council, April 18, 2016; Agenda Item #10; SR #6754, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2016/id-6754.pdf 3 City Council, October 3, 2022; Agenda Item #9; SR #14720, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2022/20221003/20221003accsm-amended-presentations.pdf#page=131 4 2022 Sustainability and Climate Action Plan; https://www.cityofpaloalto.org/files/assets/public/v/1/sustainability/reports/2022-scap-report_final.pdf 5 Comprehensive Plan Environmental Impact Report Addendum: Update to the Sustainability and Climate Action Plan, 2023; https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/agendas- minutes/city-council-agendas-minutes/2023/2023comprehensive-plan-environmental-impact-report-addendum- update-to-the-scap.pdf 6 2023-2025 S/CAP Workplan, 2023; https://www.cityofpaloalto.org/files/assets/public/v/1/sustainability/reports/2023-2025-scap-work-plan_final.pdf 7 City Council, January 29, 2024; Agenda Item #2A; SR #2401-2526, https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=e2acdc3b-a774-4838-8157-4429fee07577 Item 15 Item 15 Staff Report        Item 15: Staff Report Pg. 3  Packet Pg. 254 of 263  The S/CAP Goals and Key Actions are divided into eight areas, four of which are climate-focused and include actions to achieve the city’s 80 x 30 and carbon neutrality by 2030 goals (Climate Action, Energy, Electric Vehicles, and Mobility) and four of which are focused on actions that create a sustainable natural environment and adapting to a warming climate (Water, Climate Adaptation & Sea Level Rise, Natural Environment, and Zero Waste). The Work Plan is similarly divided between climate-focused and sustainability-focused priorities. There are twenty Council Priority Objectives in Council Priority Area Climate Change and The Natural Environment (CC&NE), with 13 in Climate Change Protection, 3 in Climate Change Adaptation: Flood Protection, and 4 in Natural Environment. This report addresses eleven of those Council Priority Objectives, as well as one in Council Priority Area Community Health & Safety (CH&S): Climate Change and the Natural Environment (CC&NE) Climate Change Protection •CC&NE m: Approve consultant to update Bike and Pedestrian Transportation Plan •CC&NE p: Begin first phase construction for grid modernization and consultant resources to plan for gas transition. •CC&NE q: Install first 1,000 heat pump water heaters through the advanced pilot program and approve expanded full-scale program •CC&NE r: Approve advanced pilot program for whole residential home electrification by the end of 2023 (targeted areas) •CC&NE s: Approve commercial rooftop HVAC electrification advanced pilot program •CC&NE t: Accept Electric Vehicle Strategic Plan •CC&NE u: Accept Reliability and Resiliency Strategic Plan •CC&NE v: Review preliminary draft S/CAP study discussing workplan resource needs and project funding opportunities •CC&NE 2: Engage youth in implementation of climate change initiatives, objectives, and goals Climate Change Adaptation: Flood Protection •CC&NE 5: Determine next steps for sea level rise and adaptation plan Natural Environment •CC&NE z: Adopt appropriate changes to the revised Tree Protection Ordinance Community Health & Safety (CH&S) Invest in Reliable Safety Infrastructure and Systems •CH&S bbb: Implement Foothills Fire Management Plan (CHS3) Item 15 Item 15 Staff Report        Item 15: Staff Report Pg. 4  Packet Pg. 255 of 263  Climate Action P1. Grid Modernization (CC&NE p) P2. Launch Programs •The City launched the Full-Service Heat Pump Water Heater (HPWH) Pilot Program in March 2023 (CC&NE q). As of December 14, 2023, 208 residents had signed contracts to get a heat pump water heater installed through the full-service HPWH program. In addition, 44 residents had installed heat pump water heaters on their own, receiving a rebate from the City. New interest in the program is 5-15 new signups per week, but a significantly higher rate of new signups is needed to generate 20 installations per week, the amount needed to reach 1,000 HPWH installations in a single year. The City continues to expand outreach. Staff engaged with the S/CAP Ad Hoc Committee and Working Group on potential program improvements and has started a program improvement effort. Slower turnaround times for projects and communication gaps that early participants experienced have been largely resolved and staff intends to introduce additional improvements to enhance the program, such as an emergency water heater replacement program. •The City held five Electric Vehicle workshops and one E-bike workshop in Q4, for a total of 32 Electric Vehicle (EV) and e-bike workshops and events in 2023. Events have Item 15 Item 15 Staff Report        Item 15: Staff Report Pg. 5  Packet Pg. 256 of 263  included twelve EV Expos, three financial incentive clinics in multiple languages (Spanish, Vietnamese, Russian, Mandarin and Cantonese), a month-long EV discount campaign, two e-bike workshops, an e-bike test ride event, and two e-bike discount campaigns. •The City continues to build out EV infrastructure and expand access in affordable housing and multi-family buildings. As of December 2023, nine multi-family properties representing 415 housing units (about 4% of all multi-family units in Palo Alto) have installed EV chargers facilitated through the City's EV programs. There are another 17 multi-family sites in the pipeline - representing 955 units or 8% of all MF in Palo Alto - working their way through completing projects. These properties have either selected a contractor or are in the permitting phase and are projected to install 288 new EV ports. Two of these sites, Palo Alto Gardens (650 San Antonio) and Arastradero Park (574 Arastradero), are affordable housing properties. Staff is also working towards extending the CLEAResult EV Technical Assistance Program contract for another 3 years until April 2027 to ensure the goals of the Program that were delayed as a result of COVID are fulfilled. The extension will allow more time to move projects currently in the pipeline to a successful completion. •Council approved participation in the State’s GoGreen Financing Program to provide financing for residential electrification programs. Staff will work with the S/CAP Ad Hoc Committee and Working Group in 2024 to design a more comprehensive full-service whole home electrification program (CC&NE r). P2.2. Non-Residential Emissions Reduction (CC&NE s) •A business pilot program for electrification of commercial kitchens and heating, ventilation, and air conditioning (HVAC) units is currently underway and early projects are being evaluated. The results will be used to inform a future larger scale advanced pilot program for rooftop HVAC. Twenty-six customer assessments have been performed, with two projects moving forward and one completed. The City has researched and analyzed options to prepare for an advanced pilot program. Staff intends to seek Council approval of program design guidelines by the end of 2023 and issue an RFP for an operator for the new program design, with additional Council approvals and program implementation in 2024. P2.3. Citywide Mobility •Between October 1, 2023 and December 31, 2023, Palo Alto Link, the city’s eco-friendly rideshare service, provided 12,722 completed rides, averaging 196 completed rides per service day. •On September 18, 2023, the City Council adopted the new Bayshore Alma San Antonio Priority Development Area (PDA), which will pave the way for grant funding opportunities supporting land use and transportation connectivity planning initiatives. •The 6th Cycle 2023-2031 Housing Element was adopted by the City Council on May 8, 2023 and submitted to the state Housing and Community Development Department (HCD) on June 7, 2023. The City is currently preparing responses to additional HCD comments on the adopted Housing Element. The updated Housing Element may include Item 15 Item 15 Staff Report        Item 15: Staff Report Pg. 6  Packet Pg. 257 of 263  additional program clarifications beyond what Council previously adopted. The Planning and Transportation Commission and Council will review and take action to adopt the revised Housing Element in early 2024 and aims for HCD certification of the new Housing Element in late Spring of 2024. •On November 13, 2023, the City undertook a key milestone ahead of 6th Cycle Housing Element Implementation, before the State’s January 31, 2024 deadline. This involved adopting Municipal Code amendments to rezone and adjust development standards for identified Housing Opportunity sites in order to meet Regional Housing Needs Allocation (RHNA) requirements. Additionally, amendments to the City’s Comprehensive Plan Land Use Element to allow multi-family land uses and adjust housing densities increase consistency between the Comprehensive Plan and the Municipal Code. •The Office of Transportation is recruiting staff to support evaluation of micro-mobility options, including piloting bike/scooter share programs and neighborhood mobility hubs to provide last-mile connections. •Efforts to maintain and modernize current traffic signals and central management systems are ongoing. The Dumbarton Express Transit Signal Priority Project is in progress. Implementation of Automated Traffic Signal Performance Measures will begin in Q1 or Q2 of 2024. •Earlier this year, the City initiated updates to the Bicycle and Pedestrian Transportation Plan, “Active Palo Alto,” (CC&NE m) and began development of a road safety plan, “Safer Palo Alto”, funded by a Safe Streets for All grant. Coordinated community engagement for both Active Palo Alto and Safer Palo Alto is in progress, including a road safety survey and interactive map, which are running through December 2023. Safer Palo Alto plan development is anticipated to be finalized by late 2024, while Active Palo Alto is slated for completed in 2025. P2.4. Municipal Electrification •On December 5, 2023, the City installed a new heat pump water heater in Palo Alto City Hall that runs on 100% clean energy. This technology is cleaner, safer, and smarter than an old gas water heater, and gets us one step closer to meeting our ambitious climate goals. •On December 1, 2023, the City received delivery of 13 new Chevy Bolt Electric Vehicles, which replaced internal combustion engine fleet vehicles. The City also received delivery of one new electric van for the airport and one electric transit van. There are now 27 EVs in the City fleet, or about 15% of the passenger vehicles and light duty trucks and vans. •There are currently 92 City-owned EV chargers, with a total of 127 charging ports. Only 6 of those chargers are dedicated to City vehicles, while the rest are primarily for public use. The City is currently testing a low-cost EV charger solution that could be used for future employee charging locations. P2.5. EV Strategic Plan (CC&NE t) •In June 2023, Council approved policy guidelines for an Electric Vehicle Strategic Plan. Item 15 Item 15 Staff Report        Item 15: Staff Report Pg. 7  Packet Pg. 258 of 263  Staff discussed the scope of the study with the S/CAP Ad Hoc Committee and S/CAP Working Group in August 2023 and released a consultant RFP soon after. The goal is to get a consulting contract approved by Council in early 2024. This plan is part of the S/CAP Funding Study (see P5. Funding Needs and Sources). P3. Build Awareness and Confidence The focus of Priority 3 is to build community awareness and confidence in electrification through engagement, addressing concerns, and program results. •The City finalized a contract with a new consultant to calculate the 2022 Greenhouse Gas Inventory with a target of including the inventory in the April 2024 Earth Day Report. •Earlier in 2023, the City reported data on the City’s climate goals and progress to the environmental non-profit CDP. Palo Alto was recognized as an “A List” city, which recognizes leadership on climate action, ambition, and transparency. Of the almost 1,000 local governments scored worldwide, just 119 received an A. •Staff continues to publish a monthly Climate Action Blog and a Quarterly Sustainability Newsletter. In Q4 we published an October8, November9, and December10 Climate Action Blog; and an October11 and November12 Sustainability Newsletter. The Sustainability Newsletter has a 50% open rate, which is the percentage of readers that open the e-mail you send them. The average open rate for electronic newsletters is 21%. •In Q4, the City held five Electric Vehicle workshops, one E-bike workshop, an edible gardening webinar, compost workshop, grid modernization webinar, and succulent container gardening workshop. The City also cosponsored the Electric Home Tour, featuring over ten Palo Alto homes who have made the switch to electric appliances. The 270 Palo Alto residents who attended the tour were able to see all-electric technology in action and gain valuable insight from homeowners on appliance selection, the installation process, cost-saving benefits, and more. •Staff is currently in the process of drafting an RFP to bring on an outreach consultant to support citywide S/CAP marketing and communications. This contract will support integration of all S/CAP programs under unified branding strategy, marketing and outreach to drive community actions to achieve S/CAP goals, and building sustainability as fundamental to the City’s identity. 8 Climate Action Blog: Clean Up With a New Water Heater, October 2023; https://medium.com/paloaltoconnect/climate-action-blog-clean-up-with-a-new-water-heater-4d391c85742c 9 Climate Action Blog: Give Thanks, Help the Planet!, November 2023; https://medium.com/paloaltoconnect/climate-action-blog-give-thanks-help-the-planet-0639f90194b0 10 Climate Action Blog: Have a Festive & Sustainable Holiday Season, December 2023; https://medium.com/paloaltoconnect/climate-action-blog-have-a-festive-sustainable-holiday-season- deab3d9c08cc 11 Sustainability Newsletter, October 2023; https://myemail.constantcontact.com/Sustainability-eNewsletter- October-2023.html?soid=1138677832922&aid=TzQk2sKYds8 12 Sustainability Newsletter, November 2023; https://myemail.constantcontact.com/Sustainability-eNewsletter- November-2023.html?soid=1138677832922&aid=GKzKrkcR0hc Item 15 Item 15 Staff Report        Item 15: Staff Report Pg. 8  Packet Pg. 259 of 263  •The City initiated a “Climate Action & Youth Engagement” special project to develop a strategy to engage youth in implementation of the S/CAP and its associated initiatives, and partner with Palo Alto Unified School District (PAUSD) to develop a strategy to educate PAUSD students about the benefits of climate action and the various City programs supporting climate action (CC&NE 2). The Special Project is almost complete, and staff will be meeting with PAUSD staff to share ideas. •In November, the Sustainability and Climate Action Plan (S/CAP) Ad Hoc Committee held a public meeting discussing sustainability and climate action progress and the multiple studies and projects City of Palo Alto Utilities (CPAU) is doing to facilitate the transition to widespread electrification. Plus, the committee heard from Peninsula Clean Energy (PCE) about their renewable energy targets and challenges reaching their 24/7 renewable energy goal. P4. Additional Emissions Reductions (CC&NE v) The focus of Priority 4 is to identify an additional 9% in emissions reduction opportunities to achieve 80 x 30. •The City is developing a comprehensive plan to gather ideas from community members and experts about new technologies and potential approaches to additional emissions reductions in Palo Alto. Staff has held several meetings with Stanford University and more work will be done when the S/CAP Funding Study is completed. •As part of the S/CAP Funding Study, the City plans on identifying potential building electrification measures for commercial and multi-family buildings and to prioritize the most cost-effective approaches to achieving the additional emissions reductions needed to achieve 80 x 30. P5. Funding Needs and Sources (CC&NE v) The focus of Priority 5 is to identify, by 2024, funding needed and potential funding sources for full scale implementation of the highest impact emissions reductions. •An analysis of the funding needs for full scale implementation of the S/CAP Climate Action Goals and Key Actions, including identifying and estimating costs for additional emissions reductions to achieve the 80x30 goal, is needed. On June 19, 2023, Council approved funding for an S/CAP study as part of the FY 2024 Budget. As part of this study, the City will also develop a city resource needs assessments. The study will build on the completed Affordability Study model, which was developed by a consultant for city staff use. Staff discussed the scope of the study with the S/CAP Committee and Working Group in August 2023 and released a consultant RFP soon after. Staff anticipates Council consideration of a consulting contract in early 2024. Sustainability The Sustainability section of the work plan includes the following S/CAP Areas: Water, Climate Adaptation & Sea Level Rise, Natural Environment, and Zero Waste. Water: Further Water Conservation Item 15 Item 15 Staff Report        Item 15: Staff Report Pg. 9  Packet Pg. 260 of 263  The near-term focus for water is reducing water consumption while exploring ways to capture and store water and increase the availability and use of recycled water. •Since Q3, the percentage of customers who have accessed the WaterSmart portal, a water management tool which provides residents information about their water consumption and personalized water conservation measures, has increased from 15% to 17%. Climate Adaptation and Sea Level Rise: Prepare for Climate Change (CC&NE 5) •The Sea Level Rise Adaptation Plan will be coordinated with the levee improvements around Palo Alto’s Bay shoreline (known as the Shoreline II Project), and the Palo Alto Flood Basin Tide Gate Replacement Project (CC&NE 5). In Q3, the City received a memo from the U.S. Army Corps of Engineers (USACE), which could affect funding opportunities. Valley Water sent a letter with combined feedback and clarification requests from Valley Water, the Cities of Palo Alto and Mountain View, and CalTrans. A subsequent response from USACE is expected in Q1 2024. The USCAE study may influence the direction of Palo Alto’s Sea Level Rise Adaptation Plan. •In late 2023, new state legislation, SB272 Sea Level Rise: Planning and Adaptation (Laird), was passed which may significantly alter the direction and scope of Palo Alto’s sea level rise adaptation plan development (CC&NE 5). The legislation, coordinated by Bay Conservation and Development Commission (BCDC), requires a Bay Area-wide plan and harmonized sub-regional plans. Subregions and required plan components will be defined by BCDC by the end of 2024. The City is participating in these regional discussions. •The City is working to continue progress where possible for sea level rise planning (CC&NE 5). City departments met during summer and fall to provide feedback about sea level rise and shallow groundwater mapping tools for City planning use. Staff anticipates that this feedback will be incorporated into the City’s suite of online GIS maps in Q1 2024. •Staff prepared a professional services agreement to update the Palo Alto Foothills Fire Management Plan and Community Wildfire Protection Plan (CWPP) (CH&S bbb). These two documents are very similar in nature, one being more internal facing, and the other being more outward facing. This update will combine both plans into one document to integrate the wildfire mitigation efforts among the Palo Alto community. Part of this update is confirming wildfire protection projects the City conducts routinely. The City will award this agreement in Q1 2024 and anticipates completion of the update in Q2 2024. •City departments met with two wildfire sensor vendors to assess and evaluate the feasibility of these sensors in the Palo Alto community (CH&S bbb). These meetings were held in conjunction with other agencies including Stanford University, Santa Clara County FireSafe Council, and Woodside Fire Protection District. The City has not reached conclusions about their use in Palo Alto, but will monitor their use in other agencies. Item 15 Item 15 Staff Report        Item 15: Staff Report Pg. 10  Packet Pg. 261 of 263  Natural Environment: Enhance Biodiversity The near-term focus for Natural Environment is to increase Palo Alto’s Tree Canopy, reduce pesticide usage in parks and open space preserves, and support the Green Stormwater Infrastructure Plan and incorporate it in municipal projects. •Ongoing tree planting efforts to increase tree canopy will be integrated with traditional tree planting programs and Green Stormwater Infrastructure to provide co-benefits including carbon sequestration, improve water quality, capture stormwater when feasible, and reduce the urban heat island (CC&NE z). An effort to establish a baseline for carbon storage of Palo Alto’s urban tree canopy is on-track to be completed in 2024. Zero Waste: Support Waste Reduction The near-term focus for Zero Waste is to encourage food waste reduction, prevention, and recovery and provide waste prevention technical assistance; eliminate single-use disposable containers; and prioritize domestic processing of recyclable materials. • The City launched a new Zero Waste Living outreach campaign in Q3. The campaign continues with the latest launch focusing on waste reduction tips for “the garden.” Staff is in the process of finalizing design and concepts for printed and media deliverables for waste reduction steps “at work” and “around the house.” • Work to develop waste prevention outreach tools and technical assistance for the commercial sector is ongoing and expected to launch in 2024. • The effort to eliminate single-use disposable containers by expanding the Disposable Foodware Ordinance has been put on hold until further clarification is received through SB 54 final regulations and changes on what will be considered recyclable and compostable. Staffing vacancies are also contributing to the delay. FISCAL/RESOURCE IMPACT Initiatives will be managed and funded across various departments and funds. The Fiscal Year 2024 work items in the 2023-2025 draft S/CAP Work Plan can proceed with the actions approved in the Fiscal Year 2024 Adopted Budget. Staff expects to submit additional resource requests as part of the annual budget process in subsequent years as the work plan proceeds. Some items in other work plans are also relevant to the S/CAP Work Plan. The Utilities Strategic Plan, for example, includes workforce development and advanced metering infrastructure (AMI) work items that are directly relevant to the S/CAP. Some of these may involve future budget requests as well. STAKEHOLDER ENGAGEMENT Stakeholder engagement on S/CAP implementation is wide-reaching and coordinated with multiple departments. Efforts include direct engagement, webinars, social media and other digital marketing/outreach, website updates, public signage, Ad Hoc Committee meeting participation, leveraging the city’s communication platforms, and more. Stakeholder Item 15 Item 15 Staff Report        Item 15: Staff Report Pg. 11  Packet Pg. 262 of 263  engagement efforts were described in the Analysis section, under P3. Build Awareness and Confidence. ENVIRONMENTAL REVIEW APPROVED BY: Item 15 Item 15 Staff Report        Item 15: Staff Report Pg. 12  Packet Pg. 263 of 263