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HomeMy WebLinkAbout2024-03-18 City Council Agenda PacketCITY COUNCIL Regular Meeting Monday, March 18, 2024 Council Chambers & Hybrid 5:30 PM Amended Agenda Amended agenda items appear below in RED (Agenda Order Updated) 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. Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks, posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do not create a facility, fire, or safety hazard; and (3) persons with such items remain seated when displaying them and must not raise the items above shoulder level, obstruct the view or passage of other attendees, or otherwise disturb the business of the meeting. TIME ESTIMATES Listed times are estimates only and are 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 ‐ 5:40 PM) 1.Proclamation Welcoming Exchange Students and Chaperones from Sister City Tsuchiura, Ibaraki, Japan CLOSED SESSION (5:40 ‐ 6:40 PM) 2.PUBLIC EMPLOYEE PERFORMANCE EVALUATION Authority: Cal Govt Code 54957 Title: City Manager – Mid‐Year Check‐In AGENDA CHANGES, ADDITIONS AND DELETIONS PUBLIC COMMENT (6:40 ‐ 6:55 PM) Members of the public may speak to any item NOT on the agenda. 1‐3 minutes deending on # of speakers. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:55 ‐ 7:00 PM) Members of the public may not speak to the item(s). STUDY SESSION (7:00 ‐ 8:00 PM) 4.Presentation from Cal Poly San Luis Obispo Community Planning Studio on its Findings Related to San Antonio Road Corridor Existing Conditions and Alternatives Report. CEQA Status ‐ Not a project. CONSENT CALENDAR (8:00 ‐ 8:05 PM) Items will be voted in one motion unless removed from the calendar by three Council Members. 5.Approval of Minutes from March 4, 2024 meeting 6.Adoption of a Resolution Approving an Edison Electric Institute Master Power Purchase and Sale Agreement With Silicon Valley Clean Energy Authority and Delegating Authority to the City Manager to Transact Under the Master Agreement for Electricity‐Related Commodities and Services CEQA Status: Not a project under CEQA Guidelines 15378(b) (5) 7.Approval of Amendment No. 2 of C19171513 With CLEAResult Consulting, Inc. (CLEAResult) Extending the Contract Expiration Date by Three Years From April 16, 2024 to April 15, 2027. CEQA Status ‐ Not a Project. 8.Approval of a Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need for a Total Not‐to‐Exceed Amount of $7,373,516 for a Five‐year Term; and Amend the FY2024 Budget in the General Fund; CEQA status – categorically exempt. 9.Adoption of a Resolution Authorizing Use of the City’s Activity (1) Permanent Local Housing Allocation (PLHA) 2019, 2020, and 2021 Allocations for Predevelopment Activities, Construction, and/or Permanent Financing of New Affordable Housing at the Matadero Creek Affordable Housing Site, and Approve FY 2024 Budget Amendments in the Permanent Local Housing Allocation Fund; CEQA Status – not a project. 10.Approval of Amended Palo Alto CLEAN Program Rules and Requirements, Handbook, and Power Purchase Agreement; CEQA Status: Not a Project under CEQA Guidelines Sections 15378(a) and (b) 11.SECOND READING: Adopt a Park Dedication Ordinance for the Tower Well site, 0.19 acres of land (8,437 square feet) at 201 Alma Street and approve the proposed name “Tower Well Park” as Recommended by the Parks and Recreation Commission. CEQA status ‐ not a project. (FIRST READING: March 4, 2024 PASSED 7‐0) CITY MANAGER COMMENTS (8:05 ‐ 8:20 PM) BREAK (5‐10 MINUTES) ACTION ITEMS (Item AA1: 8:30 ‐ 10:00 PM, Item AA2: 10:00 ‐ 10:30 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 12.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)Item Removed Off Agenda 13.Discussion and Direction Regarding the City Council Procedures and Protocols Handbook ‐ Annual Discussion as Recommended by the Policy & Services Committee Item Removed Off Agenda AA1.Approval of the 2024 City Council Priority Objectives and Finance Committee and Policy & Services Committee Workplans (Item Continued from March 4, 2024 and March 11, 2024 City Council Meeting) New Item added The report for this item can be found here*. On March 4, 2024 the Council Received Presentations and Public Testimony; the item was continued to March 11, 2024 for Council Deliberation and Action, and continued to March 18, 2024 –  No Public Testimony Will be Heard on March 18, 2024. *https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13507 AA2.Policy and Services Recommendation to the City Council for the creation of a Citizens Advisory Committee on a Potential Charter Amendment on Council Member Compensation (Item Continued from March 11, 2024 City Council Meeting) New Item added CLOSED SESSION (10:30 ‐ 11:00 PM) AA3.CONFERENCE WITH CITY ATTORNEY‐EXISTING LITIGATION Subject: Hamilton and High, LLC, The Keenan Family Trust, et al. v. City of Palo Alto, et al. Santa Clara County Superior Court Case No. 20CV366967 Authority: Government Code Section 54956.9(d) (1) New Item added 3.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 Item Reordered ADJOURNMENT OTHER INFORMATION Standing Committee Meetings this week:     Rail Committee March 19 – Finance Committee March 19 – Retail Committee March 20 – City/Schools Liaison Committee March 21 Public Comment Letters / Schedule of Meetings AMENDED AGENDA ITEMS 12.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)Item Removed Off Agenda 13.Discussion and Direction Regarding the City Council Procedures and Protocols Handbook ‐ Annual Discussion as Recommended by the Policy & Services Committee Item Removed Off Agenda AA1.Approval of the 2024 City Council Priority Objectives and Finance Committee and Policy & Services Committee Workplans (Item Continued from March 4, 2024 and March 11, 2024 City Council Meeting) New Item added The report for this item can be found here*. On March 4, 2024 the Council Received Presentations and Public Testimony; the item was continued to March 11, 2024 for Council Deliberation and Action, and continued to March 18, 2024 – No Public Testimony Will be Heard on March 18, 2024. *https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13507 AA2.Policy and Services Recommendation to the City Council for the creation of a Citizens Advisory Committee on a Potential Charter Amendment on Council Member Compensation (Item Continued from March 11, 2024 City Council Meeting) New Item added AA3.CONFERENCE WITH CITY ATTORNEY‐EXISTING LITIGATION Subject: Hamilton and High, LLC, The Keenan Family Trust, et al. v. City of Palo Alto, et al. Santa Clara County Superior Court Case No. 20CV366967 Authority: Government Code Section 54956.9(d)(1) New Item added 3.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 Item Reordered 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 March 18, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCILRegular MeetingMonday, March 18, 2024Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in RED (Agenda Order Updated)Palo 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.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.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 ‐ 5:40 PM) 1.Proclamation Welcoming Exchange Students and Chaperones from Sister City Tsuchiura, Ibaraki, Japan CLOSED SESSION (5:40 ‐ 6:40 PM) 2.PUBLIC EMPLOYEE PERFORMANCE EVALUATION Authority: Cal Govt Code 54957 Title: City Manager – Mid‐Year Check‐In AGENDA CHANGES, ADDITIONS AND DELETIONS PUBLIC COMMENT (6:40 ‐ 6:55 PM) Members of the public may speak to any item NOT on the agenda. 1‐3 minutes deending on # of speakers. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:55 ‐ 7:00 PM) Members of the public may not speak to the item(s). STUDY SESSION (7:00 ‐ 8:00 PM) 4.Presentation from Cal Poly San Luis Obispo Community Planning Studio on its Findings Related to San Antonio Road Corridor Existing Conditions and Alternatives Report. CEQA Status ‐ Not a project. CONSENT CALENDAR (8:00 ‐ 8:05 PM) Items will be voted in one motion unless removed from the calendar by three Council Members. 5.Approval of Minutes from March 4, 2024 meeting 6.Adoption of a Resolution Approving an Edison Electric Institute Master Power Purchase and Sale Agreement With Silicon Valley Clean Energy Authority and Delegating Authority to the City Manager to Transact Under the Master Agreement for Electricity‐Related Commodities and Services CEQA Status: Not a project under CEQA Guidelines 15378(b) (5) 7.Approval of Amendment No. 2 of C19171513 With CLEAResult Consulting, Inc. (CLEAResult) Extending the Contract Expiration Date by Three Years From April 16, 2024 to April 15, 2027. CEQA Status ‐ Not a Project. 8.Approval of a Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need for a Total Not‐to‐Exceed Amount of $7,373,516 for a Five‐year Term; and Amend the FY2024 Budget in the General Fund; CEQA status – categorically exempt. 9.Adoption of a Resolution Authorizing Use of the City’s Activity (1) Permanent Local Housing Allocation (PLHA) 2019, 2020, and 2021 Allocations for Predevelopment Activities, Construction, and/or Permanent Financing of New Affordable Housing at the Matadero Creek Affordable Housing Site, and Approve FY 2024 Budget Amendments in the Permanent Local Housing Allocation Fund; CEQA Status – not a project. 10.Approval of Amended Palo Alto CLEAN Program Rules and Requirements, Handbook, and Power Purchase Agreement; CEQA Status: Not a Project under CEQA Guidelines Sections 15378(a) and (b) 11.SECOND READING: Adopt a Park Dedication Ordinance for the Tower Well site, 0.19 acres of land (8,437 square feet) at 201 Alma Street and approve the proposed name “Tower Well Park” as Recommended by the Parks and Recreation Commission. CEQA status ‐ not a project. (FIRST READING: March 4, 2024 PASSED 7‐0) CITY MANAGER COMMENTS (8:05 ‐ 8:20 PM) BREAK (5‐10 MINUTES) ACTION ITEMS (Item AA1: 8:30 ‐ 10:00 PM, Item AA2: 10:00 ‐ 10:30 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 12.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)Item Removed Off Agenda 13.Discussion and Direction Regarding the City Council Procedures and Protocols Handbook ‐ Annual Discussion as Recommended by the Policy & Services Committee Item Removed Off Agenda AA1.Approval of the 2024 City Council Priority Objectives and Finance Committee and Policy & Services Committee Workplans (Item Continued from March 4, 2024 and March 11, 2024 City Council Meeting) New Item added The report for this item can be found here*. On March 4, 2024 the Council Received Presentations and Public Testimony; the item was continued to March 11, 2024 for Council Deliberation and Action, and continued to March 18, 2024 –  No Public Testimony Will be Heard on March 18, 2024. *https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13507 AA2.Policy and Services Recommendation to the City Council for the creation of a Citizens Advisory Committee on a Potential Charter Amendment on Council Member Compensation (Item Continued from March 11, 2024 City Council Meeting) New Item added CLOSED SESSION (10:30 ‐ 11:00 PM) AA3.CONFERENCE WITH CITY ATTORNEY‐EXISTING LITIGATION Subject: Hamilton and High, LLC, The Keenan Family Trust, et al. v. City of Palo Alto, et al. Santa Clara County Superior Court Case No. 20CV366967 Authority: Government Code Section 54956.9(d) (1) New Item added 3.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 Item Reordered ADJOURNMENT OTHER INFORMATION Standing Committee Meetings this week:     Rail Committee March 19 – Finance Committee March 19 – Retail Committee March 20 – City/Schools Liaison Committee March 21 Public Comment Letters / Schedule of Meetings AMENDED AGENDA ITEMS 12.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)Item Removed Off Agenda 13.Discussion and Direction Regarding the City Council Procedures and Protocols Handbook ‐ Annual Discussion as Recommended by the Policy & Services Committee Item Removed Off Agenda AA1.Approval of the 2024 City Council Priority Objectives and Finance Committee and Policy & Services Committee Workplans (Item Continued from March 4, 2024 and March 11, 2024 City Council Meeting) New Item added The report for this item can be found here*. On March 4, 2024 the Council Received Presentations and Public Testimony; the item was continued to March 11, 2024 for Council Deliberation and Action, and continued to March 18, 2024 – No Public Testimony Will be Heard on March 18, 2024. *https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13507 AA2.Policy and Services Recommendation to the City Council for the creation of a Citizens Advisory Committee on a Potential Charter Amendment on Council Member Compensation (Item Continued from March 11, 2024 City Council Meeting) New Item added AA3.CONFERENCE WITH CITY ATTORNEY‐EXISTING LITIGATION Subject: Hamilton and High, LLC, The Keenan Family Trust, et al. v. City of Palo Alto, et al. Santa Clara County Superior Court Case No. 20CV366967 Authority: Government Code Section 54956.9(d)(1) New Item added 3.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 Item Reordered 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 March 18, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCILRegular MeetingMonday, March 18, 2024Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in RED (Agenda Order Updated)Palo 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.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.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 ‐ 5:40 PM)1.Proclamation Welcoming Exchange Students and Chaperones from Sister City Tsuchiura,Ibaraki, JapanCLOSED SESSION (5:40 ‐ 6:40 PM)2.PUBLIC EMPLOYEE PERFORMANCE EVALUATION Authority: Cal Govt Code 54957 Title:City Manager – Mid‐Year Check‐InAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (6:40 ‐ 6:55 PM)Members of the public may speak to any item NOT on the agenda. 1‐3 minutes deending on # of speakers. Council reservesthe right to limit the duration of Oral Communications period to 30 minutes.COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:55 ‐ 7:00 PM)Members of the public may not speak to the item(s).STUDY SESSION (7:00 ‐ 8:00 PM)4.Presentation from Cal Poly San Luis Obispo Community Planning Studio on its FindingsRelated to San Antonio Road Corridor Existing Conditions and Alternatives Report. CEQAStatus ‐ Not a project.CONSENT CALENDAR (8:00 ‐ 8:05 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.5.Approval of Minutes from March 4, 2024 meeting6.Adoption of a Resolution Approving an Edison Electric Institute Master Power Purchaseand Sale Agreement With Silicon Valley Clean Energy Authority and Delegating Authorityto the City Manager to Transact Under the Master Agreement for Electricity‐RelatedCommodities and Services CEQA Status: Not a project under CEQA Guidelines 15378(b)(5)7.Approval of Amendment No. 2 of C19171513 With CLEAResult Consulting, Inc.(CLEAResult) Extending the Contract Expiration Date by Three Years From April 16, 2024 to April 15, 2027. CEQA Status ‐ Not a Project. 8.Approval of a Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need for a Total Not‐to‐Exceed Amount of $7,373,516 for a Five‐year Term; and Amend the FY2024 Budget in the General Fund; CEQA status – categorically exempt. 9.Adoption of a Resolution Authorizing Use of the City’s Activity (1) Permanent Local Housing Allocation (PLHA) 2019, 2020, and 2021 Allocations for Predevelopment Activities, Construction, and/or Permanent Financing of New Affordable Housing at the Matadero Creek Affordable Housing Site, and Approve FY 2024 Budget Amendments in the Permanent Local Housing Allocation Fund; CEQA Status – not a project. 10.Approval of Amended Palo Alto CLEAN Program Rules and Requirements, Handbook, and Power Purchase Agreement; CEQA Status: Not a Project under CEQA Guidelines Sections 15378(a) and (b) 11.SECOND READING: Adopt a Park Dedication Ordinance for the Tower Well site, 0.19 acres of land (8,437 square feet) at 201 Alma Street and approve the proposed name “Tower Well Park” as Recommended by the Parks and Recreation Commission. CEQA status ‐ not a project. (FIRST READING: March 4, 2024 PASSED 7‐0) CITY MANAGER COMMENTS (8:05 ‐ 8:20 PM) BREAK (5‐10 MINUTES) ACTION ITEMS (Item AA1: 8:30 ‐ 10:00 PM, Item AA2: 10:00 ‐ 10:30 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 12.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)Item Removed Off Agenda 13.Discussion and Direction Regarding the City Council Procedures and Protocols Handbook ‐ Annual Discussion as Recommended by the Policy & Services Committee Item Removed Off Agenda AA1.Approval of the 2024 City Council Priority Objectives and Finance Committee and Policy & Services Committee Workplans (Item Continued from March 4, 2024 and March 11, 2024 City Council Meeting) New Item added The report for this item can be found here*. On March 4, 2024 the Council Received Presentations and Public Testimony; the item was continued to March 11, 2024 for Council Deliberation and Action, and continued to March 18, 2024 –  No Public Testimony Will be Heard on March 18, 2024. *https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13507 AA2.Policy and Services Recommendation to the City Council for the creation of a Citizens Advisory Committee on a Potential Charter Amendment on Council Member Compensation (Item Continued from March 11, 2024 City Council Meeting) New Item added CLOSED SESSION (10:30 ‐ 11:00 PM) AA3.CONFERENCE WITH CITY ATTORNEY‐EXISTING LITIGATION Subject: Hamilton and High, LLC, The Keenan Family Trust, et al. v. City of Palo Alto, et al. Santa Clara County Superior Court Case No. 20CV366967 Authority: Government Code Section 54956.9(d) (1) New Item added 3.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 Item Reordered ADJOURNMENT OTHER INFORMATION Standing Committee Meetings this week:     Rail Committee March 19 – Finance Committee March 19 – Retail Committee March 20 – City/Schools Liaison Committee March 21 Public Comment Letters / Schedule of Meetings AMENDED AGENDA ITEMS 12.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)Item Removed Off Agenda 13.Discussion and Direction Regarding the City Council Procedures and Protocols Handbook ‐ Annual Discussion as Recommended by the Policy & Services Committee Item Removed Off Agenda AA1.Approval of the 2024 City Council Priority Objectives and Finance Committee and Policy & Services Committee Workplans (Item Continued from March 4, 2024 and March 11, 2024 City Council Meeting) New Item added The report for this item can be found here*. On March 4, 2024 the Council Received Presentations and Public Testimony; the item was continued to March 11, 2024 for Council Deliberation and Action, and continued to March 18, 2024 – No Public Testimony Will be Heard on March 18, 2024. *https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13507 AA2.Policy and Services Recommendation to the City Council for the creation of a Citizens Advisory Committee on a Potential Charter Amendment on Council Member Compensation (Item Continued from March 11, 2024 City Council Meeting) New Item added AA3.CONFERENCE WITH CITY ATTORNEY‐EXISTING LITIGATION Subject: Hamilton and High, LLC, The Keenan Family Trust, et al. v. City of Palo Alto, et al. Santa Clara County Superior Court Case No. 20CV366967 Authority: Government Code Section 54956.9(d)(1) New Item added 3.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 Item Reordered 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 March 18, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCILRegular MeetingMonday, March 18, 2024Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in RED (Agenda Order Updated)Palo 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.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.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 ‐ 5:40 PM)1.Proclamation Welcoming Exchange Students and Chaperones from Sister City Tsuchiura,Ibaraki, JapanCLOSED SESSION (5:40 ‐ 6:40 PM)2.PUBLIC EMPLOYEE PERFORMANCE EVALUATION Authority: Cal Govt Code 54957 Title:City Manager – Mid‐Year Check‐InAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (6:40 ‐ 6:55 PM)Members of the public may speak to any item NOT on the agenda. 1‐3 minutes deending on # of speakers. Council reservesthe right to limit the duration of Oral Communications period to 30 minutes.COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:55 ‐ 7:00 PM)Members of the public may not speak to the item(s).STUDY SESSION (7:00 ‐ 8:00 PM)4.Presentation from Cal Poly San Luis Obispo Community Planning Studio on its FindingsRelated to San Antonio Road Corridor Existing Conditions and Alternatives Report. CEQAStatus ‐ Not a project.CONSENT CALENDAR (8:00 ‐ 8:05 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.5.Approval of Minutes from March 4, 2024 meeting6.Adoption of a Resolution Approving an Edison Electric Institute Master Power Purchaseand Sale Agreement With Silicon Valley Clean Energy Authority and Delegating Authorityto the City Manager to Transact Under the Master Agreement for Electricity‐RelatedCommodities and Services CEQA Status: Not a project under CEQA Guidelines 15378(b)(5)7.Approval of Amendment No. 2 of C19171513 With CLEAResult Consulting, Inc.(CLEAResult) Extending the Contract Expiration Date by Three Years From April 16, 2024to April 15, 2027. CEQA Status ‐ Not a Project.8.Approval of a Professional Services Agreement (Contract No. C24190819) Between theCity of Palo Alto and Pets in Need for a Total Not‐to‐Exceed Amount of $7,373,516 for aFive‐year Term; and Amend the FY2024 Budget in the General Fund; CEQA status –categorically exempt.9.Adoption of a Resolution Authorizing Use of the City’s Activity (1) Permanent LocalHousing Allocation (PLHA) 2019, 2020, and 2021 Allocations for PredevelopmentActivities, Construction, and/or Permanent Financing of New Affordable Housing at theMatadero Creek Affordable Housing Site, and Approve FY 2024 Budget Amendments inthe Permanent Local Housing Allocation Fund; CEQA Status – not a project.10.Approval of Amended Palo Alto CLEAN Program Rules and Requirements, Handbook,and Power Purchase Agreement; CEQA Status: Not a Project under CEQA GuidelinesSections 15378(a) and (b)11.SECOND READING: Adopt a Park Dedication Ordinance for the Tower Well site, 0.19acres of land (8,437 square feet) at 201 Alma Street and approve the proposed name“Tower Well Park” as Recommended by the Parks and Recreation Commission. CEQAstatus ‐ not a project. (FIRST READING: March 4, 2024 PASSED 7‐0)CITY MANAGER COMMENTS (8:05 ‐ 8:20 PM)BREAK (5‐10 MINUTES)ACTION ITEMS (Item AA1: 8:30 ‐ 10:00 PM, Item AA2: 10:00 ‐ 10:30 PM)Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, UnfinishedBusiness and Council Matters.12.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)Item Removed Off Agenda13.Discussion and Direction Regarding the City Council Procedures and ProtocolsHandbook ‐ Annual Discussion as Recommended by the Policy & Services CommitteeItem Removed Off AgendaAA1.Approval of the 2024 City Council Priority Objectives and Finance Committee andPolicy & Services Committee Workplans (Item Continued from March 4, 2024 andMarch 11, 2024 City Council Meeting) New Item addedThe report for this item can be found here*. On March 4, 2024 the CouncilReceived Presentations and Public Testimony; the item was continued to March11, 2024 for Council Deliberation and Action, and continued to March 18, 2024 – No Public Testimony Will be Heard on March 18, 2024.*https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13507 AA2.Policy and Services Recommendation to the City Council for the creation of a Citizens Advisory Committee on a Potential Charter Amendment on Council Member Compensation (Item Continued from March 11, 2024 City Council Meeting) New Item added CLOSED SESSION (10:30 ‐ 11:00 PM) AA3.CONFERENCE WITH CITY ATTORNEY‐EXISTING LITIGATION Subject: Hamilton and High, LLC, The Keenan Family Trust, et al. v. City of Palo Alto, et al. Santa Clara County Superior Court Case No. 20CV366967 Authority: Government Code Section 54956.9(d) (1) New Item added 3.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 Item Reordered ADJOURNMENT OTHER INFORMATION Standing Committee Meetings this week:     Rail Committee March 19 – Finance Committee March 19 – Retail Committee March 20 – City/Schools Liaison Committee March 21 Public Comment Letters / Schedule of Meetings AMENDED AGENDA ITEMS 12.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)Item Removed Off Agenda 13.Discussion and Direction Regarding the City Council Procedures and Protocols Handbook ‐ Annual Discussion as Recommended by the Policy & Services Committee Item Removed Off Agenda AA1.Approval of the 2024 City Council Priority Objectives and Finance Committee and Policy & Services Committee Workplans (Item Continued from March 4, 2024 and March 11, 2024 City Council Meeting) New Item added The report for this item can be found here*. On March 4, 2024 the Council Received Presentations and Public Testimony; the item was continued to March 11, 2024 for Council Deliberation and Action, and continued to March 18, 2024 – No Public Testimony Will be Heard on March 18, 2024. *https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13507 AA2.Policy and Services Recommendation to the City Council for the creation of a Citizens Advisory Committee on a Potential Charter Amendment on Council Member Compensation (Item Continued from March 11, 2024 City Council Meeting) New Item added AA3.CONFERENCE WITH CITY ATTORNEY‐EXISTING LITIGATION Subject: Hamilton and High, LLC, The Keenan Family Trust, et al. v. City of Palo Alto, et al. Santa Clara County Superior Court Case No. 20CV366967 Authority: Government Code Section 54956.9(d)(1) New Item added 3.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 Item Reordered 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 March 18, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCILRegular MeetingMonday, March 18, 2024Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in RED (Agenda Order Updated)Palo 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.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.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 ‐ 5:40 PM)1.Proclamation Welcoming Exchange Students and Chaperones from Sister City Tsuchiura,Ibaraki, JapanCLOSED SESSION (5:40 ‐ 6:40 PM)2.PUBLIC EMPLOYEE PERFORMANCE EVALUATION Authority: Cal Govt Code 54957 Title:City Manager – Mid‐Year Check‐InAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (6:40 ‐ 6:55 PM)Members of the public may speak to any item NOT on the agenda. 1‐3 minutes deending on # of speakers. Council reservesthe right to limit the duration of Oral Communications period to 30 minutes.COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:55 ‐ 7:00 PM)Members of the public may not speak to the item(s).STUDY SESSION (7:00 ‐ 8:00 PM)4.Presentation from Cal Poly San Luis Obispo Community Planning Studio on its FindingsRelated to San Antonio Road Corridor Existing Conditions and Alternatives Report. CEQAStatus ‐ Not a project.CONSENT CALENDAR (8:00 ‐ 8:05 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.5.Approval of Minutes from March 4, 2024 meeting6.Adoption of a Resolution Approving an Edison Electric Institute Master Power Purchaseand Sale Agreement With Silicon Valley Clean Energy Authority and Delegating Authorityto the City Manager to Transact Under the Master Agreement for Electricity‐RelatedCommodities and Services CEQA Status: Not a project under CEQA Guidelines 15378(b)(5)7.Approval of Amendment No. 2 of C19171513 With CLEAResult Consulting, Inc.(CLEAResult) Extending the Contract Expiration Date by Three Years From April 16, 2024to April 15, 2027. CEQA Status ‐ Not a Project.8.Approval of a Professional Services Agreement (Contract No. C24190819) Between theCity of Palo Alto and Pets in Need for a Total Not‐to‐Exceed Amount of $7,373,516 for aFive‐year Term; and Amend the FY2024 Budget in the General Fund; CEQA status –categorically exempt.9.Adoption of a Resolution Authorizing Use of the City’s Activity (1) Permanent LocalHousing Allocation (PLHA) 2019, 2020, and 2021 Allocations for PredevelopmentActivities, Construction, and/or Permanent Financing of New Affordable Housing at theMatadero Creek Affordable Housing Site, and Approve FY 2024 Budget Amendments inthe Permanent Local Housing Allocation Fund; CEQA Status – not a project.10.Approval of Amended Palo Alto CLEAN Program Rules and Requirements, Handbook,and Power Purchase Agreement; CEQA Status: Not a Project under CEQA GuidelinesSections 15378(a) and (b)11.SECOND READING: Adopt a Park Dedication Ordinance for the Tower Well site, 0.19acres of land (8,437 square feet) at 201 Alma Street and approve the proposed name“Tower Well Park” as Recommended by the Parks and Recreation Commission. CEQAstatus ‐ not a project. (FIRST READING: March 4, 2024 PASSED 7‐0)CITY MANAGER COMMENTS (8:05 ‐ 8:20 PM)BREAK (5‐10 MINUTES)ACTION ITEMS (Item AA1: 8:30 ‐ 10:00 PM, Item AA2: 10:00 ‐ 10:30 PM)Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, UnfinishedBusiness and Council Matters.12.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)Item Removed Off Agenda13.Discussion and Direction Regarding the City Council Procedures and ProtocolsHandbook ‐ Annual Discussion as Recommended by the Policy & Services CommitteeItem Removed Off AgendaAA1.Approval of the 2024 City Council Priority Objectives and Finance Committee andPolicy & Services Committee Workplans (Item Continued from March 4, 2024 andMarch 11, 2024 City Council Meeting) New Item addedThe report for this item can be found here*. On March 4, 2024 the CouncilReceived Presentations and Public Testimony; the item was continued to March11, 2024 for Council Deliberation and Action, and continued to March 18, 2024 – No Public Testimony Will be Heard on March 18, 2024.*https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13507AA2.Policy and Services Recommendation to the City Council for the creation of a CitizensAdvisory Committee on a Potential Charter Amendment on Council MemberCompensation (Item Continued from March 11, 2024 City Council Meeting) New ItemaddedCLOSED SESSION (10:30 ‐ 11:00 PM)AA3.CONFERENCE WITH CITY ATTORNEY‐EXISTING LITIGATION Subject: Hamilton andHigh, LLC, The Keenan Family Trust, et al. v. City of Palo Alto, et al. Santa Clara CountySuperior Court Case No. 20CV366967 Authority: Government Code Section 54956.9(d)(1) New Item added3.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code Section54956.8 Property: 4000 Middlefield Road, Palo Alto (Informally known as the CubberleySite) 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 ItemReorderedADJOURNMENTOTHER INFORMATIONStanding Committee Meetings this week:    Rail Committee March 19 – Finance Committee March 19 – Retail Committee March 20 – City/Schools LiaisonCommittee March 21Public Comment Letters / Schedule of MeetingsAMENDED AGENDA ITEMS12.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)Item Removed Off Agenda13.Discussion and Direction Regarding the City Council Procedures and Protocols Handbook ‐ AnnualDiscussion as Recommended by the Policy & Services Committee Item Removed Off AgendaAA1.Approval of the 2024 City Council Priority Objectives and Finance Committee and Policy & ServicesCommittee Workplans (Item Continued from March 4, 2024 and March 11, 2024 City CouncilMeeting) New Item addedThe report for this item can be found here*. On March 4, 2024 the Council Received Presentations andPublic Testimony; the item was continued to March 11, 2024 for Council Deliberation and Action, andcontinued to March 18, 2024 – No Public Testimony Will be Heard on March 18, 2024.*https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13507AA2.Policy and Services Recommendation to the City Council for the creation of a Citizens AdvisoryCommittee on a Potential Charter Amendment on Council Member Compensation (Item Continued fromMarch 11, 2024 City Council Meeting) New Item addedAA3.CONFERENCE WITH CITY ATTORNEY‐EXISTING LITIGATION Subject: Hamilton and High, LLC, The KeenanFamily Trust, et al. v. City of Palo Alto, et al. Santa Clara County Superior Court Case No. 20CV366967Authority: Government Code Section 54956.9(d)(1) New Item added 3.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 Item Reordered 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 March 18, 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: March 18, 2024 Report #:2403-2721 TITLE Proclamation Welcoming Exchange Students and Chaperones from Sister City Tsuchiura, Ibaraki, Japan RECOMMENDATION That the City Council issue the proclamation welcoming exchange students and chaperones from Tsuchiura, Japan ATTACHMENTS Attachment A: Proclamation Welcoming Tsuchiura Exchange Students APPROVED BY: Mahealani Ah Yun Item 1 Item 1 Staff Report        Item 1: Staff Report Pg. 1  Packet Pg. 6 of 389  WELCOMING EXCHANGE STUDENTS AND CHAPERONES FROM TSUCHIURA, JAPAN AND ACKNOWLEDGMENT OF PALO ALTO HOST STUDENTS AS STUDENT AMBASSADORS WHEREAS, the exchange program between middle schools is the foundation of the Sister City relationship to promote international and intercultural understanding; and WHEREAS, Palo Alto and Tsuchiura have engaged their middle school students and their families in cultural and educational exchanges; and WHEREAS, the opportunity to host Tsuchiura students here and send Palo Alto students to Tsuchiura, Japan has proven to be mutually beneficial; and; and WHEREAS, the City of Palo Alto thanks the City of Tsuchiura for their warm hospitality extended to Palo Alto students since 1995. NOW, THEREFORE, I, Greer Stone Mayor of the City of Palo Alto, on behalf of the City Council, hereby express our heartfelt welcome to Tsuchiura Chaperones: Mr. So Karata, Ms. Haruko Isonishi, and Ms. Masumi Saiko and fourteen Tsuchiura students: Reina Kawamura, Hanoi Suzuki, Yuna Nakaya, Mao Fujiwara, Chiharu Kusama, Akiho Sawamura, Yui Kawauchi, Mei Watanabe, Asuka Kawada, Yuna Fukuda, Runa Matsumato, Rinka Taya, Kotono Akiba and Ryo Oya. FURTHER, we recognize with pride our own students (seventeen strong) as Student Ambassadors of the City of Palo Alto:Fiona Buchholz, Julia Ni, Isabella Paglia, Nika Ploesser, Kai Russel, Jane Han, Juliette Mermod, Diya Contractor, Luna Han, Soane Pauliac Vaujour, Emi Globus, Siyuan Claire Huang, Isabella Wang, Aria Agarwal, Nathan Wong, Benjamin Rosen and Jianting Liu. Presented: March 18, 2024 ______________________________ Greer Stone Mayor Proclamation Item 1 Attachment A - Proclamation Welcoming Tsuchiura Exchange Students        Item 1: Staff Report Pg. 2  Packet Pg. 7 of 389  City Council Staff Report From: City Manager Report Type: STUDY SESSION Lead Department: Planning and Development Services Meeting Date: March 18, 2024 Report #:2402-2697 TITLE Presentation from Cal Poly San Luis Obispo Community Planning Studio on its Findings Related to San Antonio Road Corridor Existing Conditions and Alternatives Report. CEQA Status - Not a project. RECOMMENDATION Staff recommends Council receive the presentation. BACKGROUND Students from Cal Poly San Luis Obispo’s City and Regional Planning Department’s Community Planning Studio have studied the San Antonio Road Corridor as part of a class assignment and prepared an existing conditions and alternatives report (Attachments A and B, respectively) for the City’s consideration. The City Council authorized staff to engage with Cal Poly to support this student-led initiative that provides real world, practical land use and transportation experience to undergraduate students interested in pursuing a career in community planning. The attached report and associated material from two community workshops (Attachment C) were prepared entirely by the students and represent their findings. The transmittal and presentation of this information is not an endorsement from the City or staff as to the feasibility, practicability or factual accuracy of the material presented. The intent of this partnership and the City’s support for this program is to stimulate a community discussion concerning the San Antonio Road Corridor as the City begins a formal study and analysis to prepare a community plan for this area. Future planning will address anticipated housing production and population growth, multi-modal transportation access and solutions, commercial services and community amenities, such as open space and parks. As step toward the formal community plan process, staff would like to thank and recognize the Cal Poly San Luis Obispo Community Planning Studio students and the leadership of Assistant Professor Dr. Dave Amos for their interest in the City, the long hours dedicated toward this project and engagement with the Palo Alto community. Item 4 Item 4 Staff Report        Item 4: Staff Report Pg. 1  Packet Pg. 8 of 389  FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 4 Item 4 Staff Report        Item 4: Staff Report Pg. 2  Packet Pg. 9 of 389  San Antonio Road Corridor Existing Conditions Report City of Palo Alto Cal Poly Community Planning Fall 2023 Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 3  Packet Pg. 10 of 389  Table of Contents Chapter 1: Land Use Introduction Major Findings Regional Context Regulatory Setting Housing Mountain View Chapter 2: Transportation Introduction Major Findings Regulatory Setting Roadway Network Bicycle Network Pedestrian Network Public Transportation Transportation Demand Management Safety Parking Airport Chapter 3: Environment Introduction Major Findings Hydrogoloy and Water Resources Biological Resources Hazards Climate Noise Chapter 4: Urban Design Introduction Major Findings City Structure Corridor Structure Streetscape Urban Form Walkability 4 4 5 8 19 25 36 36 37 39 43 47 49 55 56 58 61 66 66 67 72 75 84 90 98 98 100 102 108 111 115 Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 4  Packet Pg. 11 of 389  Chapter 5: Education, Culture, and History Introduction Major Findings Education Culture History 120 120 122 132 137 Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 5  Packet Pg. 12 of 389  Land Use Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 6  Packet Pg. 13 of 389  4 Existing Conditions Report | Land Use Introdution This chapter reviews the context for land use planning in Palo Alto and provides a snapshot of the community’s character. It provides a comprehensive overview of Palo Alto’s regional context, regulations, land use designations, zoning, housing, and the relationship to Mountain View. This chapter also identifies opportunities and potential challenges related to the long-term growth and development of the city, and it analyzes the development potential of Palo Alto under existing City plans, policies, and regulations. Major Findings • The City of Palo Alto is mandated to provide 6,086 housing units based on the State of California’s Regional Housing Needs Allocation (RHNA). These units are distributed across different income levels: 778 for extremely low-income, 778 for very low-income, 896 for low-income, 1,013 for moderate-income, and 2,621 for above-moderate income households. • The City of Palo Alto has identified 48 housing opportunity sites within the project area. Among these, 34 sites are designated for rezoning to allow high-density residential development, while the remaining sites are selected for upzoning to achieve higher density. In total, these sites are expected to yield 1,289 housing units. • Palo Alto has 23 Land Use Designations; seven of which are present within the project area. Light Industrial and Research/Office Park land uses make up about 60 percent of the project area while residential land uses make up 26 percent of the project area. • Research/Office/Limited Manufacturing (ROLM) and General Manufacturing (GM) zones make up about 60 percent of the project area. Residential zones make up about 15 percent of the project area; Single-Family Residential makes up nine percent alone. Planned Communities make up 21 percent of the project area. • The City of Mountain View has nine different land uses adjacent to the project area. The mix of land uses are mostly spread evenly across the border. However, Low-Density Residential and General Industrial land uses make up the majority of adjacent land use. There are only five zones adjacent to the project area. Similar to the land use, Single-Family Residential and General Industrial zones make up the majority of adjacent zoning. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 7  Packet Pg. 14 of 389  5 Existing Conditions Report | Land Use Regional Context Palo Alto is located within Silicon Valley in the northwesternmost corner of Santa Clara County. Palo Alto is 35 miles south of San Francisco and 14 miles northwest of San Jose (see Figure 1). At approximately 25.96 square miles, the city is bordered by East Palo Alto and Menlo Park to the north, Los Altos and Mountain View to the south, San Fransico Bay to the east, and unincorporated Santa Clara County everywhere else (see Figure 2). Multiple highways run through Palo Alto including, US Highway 101, CA Highway 82, and a small portion of US Interstate 280. Figure 1 - Regional Context Map Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 8  Packet Pg. 15 of 389  6 Existing Conditions Report | Land Use Figure 2 - City Boundary Map The San Antonio Road Corridor is approximately 260 acres (see Figure 3) and is located at the easternmost edge of Palo Alto, bordering the city of Mountain View. The San Antonio Road corridor is in close proximity to major technology companies headquartered in Silicon Valley, including Google, Facebook, Apple, and numerous startup offices. The San Antonio Road Corridor has experienced significant residential and commercial development driven by the demand for housing and office spaces in proximity to Silicon Valley. This proximity contributes to the corridor’s significant business and residential development. San Antonio Road is accessible by major highways, including Highway 101 and El Camino Real, providing connectivity to neighboring cities, airports, and the broader Bay Area. Legend Project Boundary Line Legend Site Boundary City Boundary El Cam i n o R e a l Midd l e  e l d R d High w a y 1 0 1 Oreg o n E x p y Palo Alto Mountain View Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 9  Packet Pg. 16 of 389  7 Existing Conditions Report | Land Use Figure 3 - Project Area Map Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 10  Packet Pg. 17 of 389  8 Existing Conditions Report | Land Use Regulatory Setting Federal Regulations This section explores federal regulations relevant to Palo Alto and the project area. These regulations play a vital role in shaping land use policies in the area. This section encompasses various federal laws that impact the region, highlighting the broader regulatory framework that influences the planning and development processes within Palo Alto. National Historic Preservation Act of 1966 The National Historic Preservation Act (NHPA) was created to protect historic properties and cultural resources. It encompasses rules that are tailored for federal land-holding agencies and extend to all projects funded, permitted, or approved by federal agencies with potential cultural resource impacts. Although the project area does not have any historical buildings, there is a historical district adjacent to the project area. Greenmeadow is a historic district adjacent to the site, known for its Mid-Century Modern architecture. Designed by Joseph Eichler in 1954, it includes 220 well-preserved structures. These homes are characterized by Eichler’s signature style with single- story layouts, floor-to-ceiling glass, T-Shape interior, and innovative features. Notably, Greenmeadow has a Community Center that was an innovative concept at the time. The district shows Eichler’s dedication to planning and architectural design, highlighting his lasting impact on modern American architecture. Community Development Block Grant (CDBG) The Department of Housing and Urban Development (HUD) provides annual Community Development Block Grants (CDBG) to state, cities, and counties. These grants are used to fund organizations that create programs for low- and moderate- income residents and community development needs. In May 2021, Palo Alto received $536,756 in CDBG funding. This funding supports the Rebuilding Together Peninsula Safe at Home Project, addressing home repair needs for low-income Palo Alto homeowners. Additionally, the funds are directed towards public service initiatives, including support services for the Palo Alto Housing Corporation’s Single Room Occupancy program, Silicon Valley Independent Living Housing and emergency services, and rental relief assistance organizations like LifeMoves. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 11  Packet Pg. 18 of 389  9 Existing Conditions Report | Land Use State Regulations This section describes the State regulatory framework related to land use and community character in the Palo Alto planning area. With a focus on promoting affordable housing and sustainable development, these regulations aim to address the state’s housing challenges. The City adheres to California’s broader policies while also implementing local strategies to balance growth and preserve community character. The San Antonio Road Corridor project will encompass a wide variety of federal, state, regional, and local regulations that require careful consideration throughout the design process. SB 9 SB 9 allows homeowners to divide their property into two lots, thereby increasing opportunities for homeownership in their neighborhood. Two homes can be built on each of those lots, with the effect of legalizing fourplexes in areas that previously only allowed one home. The bill provides protection against the displacement of existing tenants. SB 9 is widely seen as the most ambitious and controversial housing bill of many passed last year. Palo Alto was among the cities that expressed opposition to SB 9, specifically the by-right approval process because it fails to recognize the extensive public engagement associated with developing and adopting zoning ordinances and housing elements. Since the law was passed in August, Palo Alto and other cities have been trying to reassert their power over new housing projects by revising their design standards and adding new objective criteria that SB 9 projects will have to meet to qualify for approval. In Palo Alto, the City Council adopted an urgency ordinance on December 6th that establishes new rules for single-family homes and replaces subjective criteria for neighborhood compatibility with objective standards. The city also plans to pass a permanent ordinance in response to SB 9 later in 2023, after reviews by the Architectural Review Board and the Planning and Transportation Commission. The ordinance is expected to include additional requirements and restrictions, with some council members favoring requiring at least one of the new residences to be designated at below market rate. The majority of single-family lots in the San Antonio Road project area are not large enough to accommodate a second dwelling unit. Considering the average lot size in the project area and the lack of public engagement, SB will likely not be applicable to the San Antonio Road Corridor project. SB 35 SB 35 establishes streamlining procedures for affordable housing and mixed-use projects under certain conditions. In order to be eligible for streamlining, the project must meet specific standards including affordability (at least 50 percent of the proposed residential units must be dedicated as affordable to households at 80 percent AMI for either rental or ownership projects), number of units, zoning and affordability, location, Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 12  Packet Pg. 19 of 389  10 Existing Conditions Report | Land Use historic buildings, and more. The bill was enacted in 2018 to streamline multifamily infill development in jurisdictions that are not meeting their housing production goals. SB 35 allows qualified multifamily infill projects to go through a simplified and expedited housing approval process in jurisdictions that are not on track to meet their housing production goals. Eligible projects must provide a minimum share of affordable units, follow certain labor provisions, and be consistent with local planning standards. SB 35 creates a streamlined and ministerial process for housing developments that meet objective design standards including height restrictions and density limits. A recent legislative analysis of the bill indicates that a large majority of cities and counties in California are subject to SB 35 because they have failed to generate enough units in one or more income levels to meet their RHNA goals. Since the bill’s adoption, most of the state’s 100 percent affordable housing projects have been subject to SB 35 and the bill has reduced the approval timelines for these projects, in some cases, from years to months. SB 35 has the potential to streamline the production of necessary housing and mixed-use projects in the San Antonio Road area. However, some parties have expressed concern over the bill taking away the ability of local government to make local planning decisions about the built environment and it does not give opportunities to residents to provide comments or input. While the bill holds promise of expediting the production of essential housing, it raises concerns about the potential erosion of local autonomy and community involvement in the project decision-making process. SB 10 SB 10 provides cities with an easier path for “up-zoning” residential neighborhoods close to job centers, public transit, and existing urban areas. Under SB 10, cities can choose to authorize construction of up to 10 units on a single parcel without requiring an environmental review. Bypassing environmental review speeds up development and allows for more residential units to be built in a shorter amount of time. By creating a pathway for streamlined upzoning in transit-rich areas, SB 10 allows more Californians, including communities of color, to access high opportunity areas and will help alleviate traffic congestion and pollution. Current laws can prevent local governments from zoning for smaller, less expensive housing. SB 10 provides tools for local governments to zone for up to ten homes per parcel in transit-rich areas, or urban infill sites. In theory, by creating a pathway for streamlined upzoning in transit-rich areas, the bill allows more Californians to access high-opportunity areas and will help alleviate traffic congestion and pollution. The City of Palo Alto has expressed opposition to SB 10, viewing the bill as a potentially anti-democratic power. Some community members have concerns stemming from the idea that SB 10 encourages local governments to up-zone parcels in vaguely defined job-rich and transit-rich areas, independent of their general plan, and with no affordability requirements or measures to provide for the necessary infrastructure and other associated community needs. Such actions in high-demand areas, like Palo Alto, do not significantly decrease housing affordability Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 13  Packet Pg. 20 of 389  11 Existing Conditions Report | Land Use but rather increase land prices. Due to the fact zoning has not been an obstacle for affordable housing in Palo Alto, SB 10 will likely not have much relevance or impact on the San Antonio Road Corridor. SB 478 Under SB 478, developments that have between three and seven units would have a minimum FAR of 1.0, while those with between eight and ten units must be allowed a FAR of 1.25. This bill could help stop the misuse of FAR and minimum lot size requirements that prevent the construction of multi-family buildings in areas already zoned to allow them. Because there is a significant amount of medium-density residential zones in Palo Alto that allow a FAR of 0.4 or 0.6, SB 478 would effectively double the density of these residential lots. Due to Palo Alto’s existing strategies for increasing density, SB 478 will help further promote and streamline the production of medium-density housing and mixed-use developments in the San Antonio Road Corridor. Regional Regulations This section describes the regional regulatory framework related to land use and community character in the Palo Alto planning area. The City adheres to California’s broader policies while also implementing local strategies to balance growth and preserve community character. The San Antonio Road Corridor project will encompass a wide variety of federal, state, regional, and local regulations that require careful consideration throughout the design process. Local Agency Formation Commission (LAFCO) The Local Agency Formation Commission (LAFCO) is a regulatory agency in California responsible for overseeing changes in local government organization and boundaries. The fundamental thrust of Plan Bay Area is to accommodate the majority of growth in priority development areas. Priority development areas include infill areas within a city usually served by transit, such as historic downtowns and underutilized commercial strips. This approach is consistent with and supportive of LAFCO’s goals to encourage orderly boundaries, discourage urban sprawl, and preserve agricultural and open space lands. Plan Bay Area includes projections for the region’s population, housing, and job growth within existing urbanized areas. These projections demonstrate that the region has the capacity to accommodate expected growth over the next 30 years without sprawling further into undeveloped land on the urban fringe. Federal regulations require the Metropolitan Transportation Commission (MTC) to produce a Regional Transportation Plan, while state law requires the Association of Bay Area Governments (ABAG) and MTC to jointly develop the Bay Area’s Sustainable Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 14  Packet Pg. 21 of 389  12 Existing Conditions Report | Land Use Communities Strategy. To meet these requirements, MTC and ABAG address both in a single document - Plan Bay Area. Palo Alto may update its Housing Element to ensure that it accommodates the regional housing needs allocated by the ABAG. Palo Alto may also coordinate with the MTC to explore opportunities for enhancing public transportation and promoting development near transit hubs to reduce reliance on private vehicles. Local Regulations City of Palo Alto Comprehensive Plan 2030 (Comprehensive Plan) The Comprehensive Plan, adopted by the City in 2017, encompasses the official policies of the City concerning land use and community design, transportation, housing, natural environment, safety, business and economics, and community services. These policies apply to both public and private properties, with a primary emphasis on shaping the city’s physical landscape. The Comprehensive Plan is a legal document and must adhere to specific state-mandated content requirements. State law defines the subjects that must be covered and the maps and diagrams that the plan requires. The plan must be comprehensive, long-range, and internally consistent. Its policies apply to all properties within Palo Alto’s Sphere of Influence, which encompasses all the land within the city limits, the Stanford University campus, and other properties in unincorporated Santa Clara County. Land Use Goals As a comprehensive document, the 2030 Comprehensive Plan lists many goals, strategies, policies, and actions across a mix of topics. The goals related to land use include growth management, sustainable communities, distinct neighborhoods, commercial centers, employment districts, design of buildings and public space, historic resources, parks and gathering places, public streets and public spaces, and the Palo Alto Airport. Land Use Designations The Land Use Element outlines 23 Land Use Designations in the city; seven of which are present within the project area (see Figure 4) and are defined and described in Table 1 below. Each parcel is assigned a Land Use Designation that conveys the City’s intended purpose and character. These designations establish the fundamental policies and features that are then implemented through zoning regulations. Most of the adjacent land uses within Palo Alto are the same as in the project area; except for a small portion that is designated as School District Land which exists on the east border of the project area between Alma Street and Middlefield Road. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 15  Packet Pg. 22 of 389  13 Existing Conditions Report | Land Use Figure 4 - Comprehensive Plan Land Use Designation Map Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 16  Packet Pg. 23 of 389  14 Existing Conditions Report | Land Use Land Use Designations Allowed Density/FAR Single-Family Residential Residential neighborhoods characterized by detached single-family homes, typically with one dwelling unit on each lot. 1-7 du/ac 1-14 du/ac* *On parcels where second units or duplexes occur Multi-Family Residential Residential neighborhoods characterized by three or more dwelling units, which may be in the same building or in separate buildings on the same site. 8-40 du/ac 8-90 du/ac Mixed-Use Intended to promote pedestrian-oriented places that layer compatible land uses, public amenities, and utilities together at various scales and intensities. 1.15 FAR Service Commercial Facilities providing citywide and regional services and relying on customers arriving by car. Typical uses include auto services and dealerships, motels, lumberyards, appliance stores, and restaurants, including fast service types. 0.4 FAR Neighborhood Commercial Includes shopping centers with off-street parking or a cluster of street-front stores that serve the immediate neighborhood. Typical uses include supermarkets, bakeries, drugstores, variety stores, barber shops, restaurants, self-serve laundries, dry cleaners, and hardware stores. 0.4 FAR Light Industrial Wholesale and storage warehouses and the manufacturing, processing, repairing, and packaging of goods. 0.5 FAR Research/ Office Park Office, research, and manufacturing establishments whose operations are buffered from adjacent residential uses. 0.3-0.5 FAR Table 1 - Description of Land Use Designations Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 17  Packet Pg. 24 of 389  15 Existing Conditions Report | Land Use Desegnaiton Acres (Project Area) Percentage (Project Area) Residential Single-Family Residential 22.5 10% Multi-Family Residential 36.4 16% Subtotal 58.9 26% Commercial/Mixed Use Service Commercial 21.8 9% Neighborhood Commercial 2.2 1% Mixed-Use 12.6 5% Subtotal 36.6 15% Business/Industrial Research/Office Park 41.6 18% Light Industrial 93.2 40% Subtotal 134.8 59% TOTAL 230.3 100% Table 2 - Comprehensive Plan Land Use Designations(Does not include 29.9 acres (12 percent) of public right-of-way within project area) Table 2 (above) lists the acreage and percent share for each land use designation in the project area. Light Industrial and Research/Office Park land uses make up 59 percent of the project area and are mostly located in the north half of the project area. Residential land uses make up 26 percent of the project area and are located in the southern half of the project area, south of East Charleston Road. Service Commercial, Neighborhood Commercial, and Mixed-Use land uses form 15 percent of the project area. These commercial uses mostly exist in the middle of the project area between East Charleston Road and Middlefield Road with a small portion just below Middlefield Road. Mixed-Use land use is in one area just north of East Charleston Road. Zoning The Zoning Ordinance serves as the chief regulatory tool for translating the objectives of the Comprehensive Plan’s Land Use Element into practice. It outlines the legally permissible type, intensity, and development criteria for a specific parcel. In accordance with state law, the Zoning Ordinance is required to conform to the Land Use and Development Policies outlined in the Comprehensive Plan. Existing zoning in the project area is generally consistent with the planned distribution of uses articulated in the Comprehensive Plan. Figure 5 shows the zoning districts within the project area and Table 3 lists the titles and percent distribution of these zoning districts. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 18  Packet Pg. 25 of 389  16 Existing Conditions Report | Land Use Figure 5 - Zoning Map Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 19  Packet Pg. 26 of 389  17 Existing Conditions Report | Land Use Title Acres (Project Area) Percent (Project Area) Residential R-1(8000) (Single Family Residential)21.1 9% R-2 (Two Family Residential)0.3 >1% RM-20 (Low-Density Multiple-Family Residential)10.2 4% RM-30 (Medium-Density Multiple-Family Residential)4.4 2% Subtotal 36.0 15% Commercial CN (Neighborhood Commercial)2.2 9% CS (Service Commercial)*12.8 1% Subtotal 15.0 15% Industrial ROLM (Research, Office, Limited Manufacturing)**35.0 18% GM (General Manufacturing)96.4 40% Subtotal 131.4 59% Planned Community PC (Planned Community)47.6 21% Subtotal 47.6 21% TOTAL 230 100% Table 3 - Zoning Distribution(Does not include 29.2 (11percent) acres of public right-of-way within project area)*Includes CS (AD)**Includes ROLM (D)(AD) Similar to the land use designations, Research/Office/Limited Manufacturing (ROLM) and General Manufacturing (GM) zones make up 57 percent of the project area and are located mostly in the north half of the project area. The ROLM zones permit a specific set of office, research, and manufacturing activities within a manufacturing and research park setting, designed for uses needing larger spaces with access to natural light and air. While office uses are allowed, they shouldn’t dominate this district. The ROLM district primarily targets areas designated for research and office park use in the Palo Alto Comprehensive Plan, especially those east of El Camino Real. Planned Community (PC) zones make up 21 percent of the area and are spread throughout the project area. Planned Community zones are designed to support developments that encompass various activities like residential, commercial, professional, research, administrative, and industrial uses. These zones offer flexibility for combinations of uses under controlled conditions that may not be achievable Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 20  Packet Pg. 27 of 389  18 Existing Conditions Report | Land Use in other districts. They are especially suited for well-planned, comprehensive developments that provide significant public benefits and align with the goals of the Palo Alto Comprehensive Plan. Residential (R-1, R-2, RM-20, and RM-30) zones make up 15 percent of the project area and are located in the south half of the project area, south of East Charleston Road. Single Family Residential (R-1) aims to establish, protect, and improve areas suitable for standalone homes, emphasizing natural surroundings and open spaces for privacy, outdoor living, and children’s play. The zones allow for accessory dwelling units, junior accessory dwelling units, and accessory structures or buildings. Two-Family Residential (R-2) permits a second dwelling unit under the same ownership as the primary one on suitable sites in areas designated for single-family. Regulations are in place to maintain the fundamental single-family character and community facilities like schools and public spaces are restricted unless their inclusion does not result in a net loss of housing. Low-Density Multiple-Family Residential (RM-20) is designed for a mix of single-family and multiple-family housing that harmonizes with nearby low-density residential zones, including single-family districts. This district also acts as a transitional zone to moderate-density multiple-family or nonresidential areas. Medium-Density Multiple-Family Residential (RM-30) aims to create and improve neighborhoods for multiple-family housing with specific site development standards and visual features to minimize impacts on adjacent lower-density residential districts. This density level is suitable for larger properties where developments can provide their own parking and fulfill open space requirements, typically in the form of garden apartments or cluster developments. Both Neighborhood Commercial (CN) and Service Commercial (CS) zones make up only seven percent of the project area. These commercial zones only exist in the middle of the project area between East Charleston Road and Middlefield Road. The Neighborhood Commercial zones aim to establish and preserve neighborhood shopping zones, mainly for retail sales, personal services, eateries, and moderately-sized offices catering to the local community. Regulations are designed to ensure these activities are highly compatible with the nearby residential areas. The Service Commercial zones are designed to establish and maintain zones for citywide and regional services that may not be suitable for neighborhood or pedestrian-oriented shopping areas. These services often necessitate automotive access for customer convenience, vehicle/equipment maintenance, loading/unloading, and parking of commercial service vehicles. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 21  Packet Pg. 28 of 389  19 Existing Conditions Report | Land Use Zoning Subdistricts and Combining Districts Special Residential Building Site R-1 Subdistricts (7000), (8000), (10000), (20000) • The special residential building site R-1 subdistricts adapt R-1 single-family residential zone regulations to establish and preserve diverse single-family living areas with varying site sizes and development characteristics. Each subdistrict variation corresponds to the zone’s minimum lot size; R-1 (8000) has an 8,000 square foot minimum lot size. Automobile Dealership (AD) Combining District • The Automobile Dealership (AD) district modifies service commercial (CS) and general manufacturing (GM or GM(B)) district regulations to establish areas for automobile dealerships specializing in new and used vehicle sales and service on both citywide and regional levels. Such uses generally require specific parking, access, and outdoor display provisions for customer convenience, vehicle servicing, loading/unloading, and commercial service vehicle parking. Site and Design (D) Review Combining District • The Site and Design Review Combining District aims to establish a review and approval process for development in environmentally and ecologically sensitive areas, as well as established community areas that might be affected by negative aesthetic factors, excessive noise, increased traffic, or other disruptions. The goal is to ensure that such development harmonizes with surrounding land uses, aligns with environmental and ecological goals, and conforms to the Palo Alto Comprehensive Plan. Housing Housing Supply The housing inventory in Palo Alto currently consists of 26,161 units. Among these, 61 percent are designated as single-family homes. Furthermore, within this housing stock, there are 11,423 units currently rented by tenants, while 14,727 units are owned by homeowners. These figures provide a snapshot of the housing landscape in the region and its distribution among various housing types and ownership arrangements. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 22  Packet Pg. 29 of 389  20 Existing Conditions Report | Land Use Housing Element The Housing Element is a component of Palo Alto’s Comprehensive Plan. The primary goal of the housing element is to establish a comprehensive strategy to ensure the city allocates sufficient land for safe, high-quality, and affordable housing for its residents. It encompasses an assessment of both current and future housing needs and outlines a strategy for housing objectives, policies, and initiatives. The State of Califorina mandates that each city must update its housing element every eight years to fulfill the Regional Housing Need Allocation (RHNA). This allocation determines the housing requirements at various affordability levels. Currently, the City of Palo Alto does not have an approved Housing Element from the state, as it was rejected twice due to non- compliance with RHNA requirements. The city has resubmitted its 2023-2031 housing element and is awaiting state approval. Income Level Number of Units Extremely Low 778 Very Low 778 Low 896 Moderate 1,013 Above Moderate 2,621 TOTAL 6,086 Table 4 - RHNA Numbers Table 4 provides an overview of RHNA numbers for the City of Palo Alto for the 2023- 2031 Housing Element cycle. It breaks down the allocation of housing units by income level, with a total of 6,086 units distributed across various income categories. Housing Policies The City of Palo Alto Housing Element aims to address the expanding population and job market. The population growth has led to a sharp increase in housing demand, resulting in soaring housing costs. As a consequence, residents are finding it increasingly difficult to afford homes in the city. Between 2020 and 2021, home prices surged by 40 percent, accompanied by a 55 percent spike in rental prices. As of 2021, the median home price in Palo Alto reached $3.6 million. This trend mirrors the situation observed in numerous Silicon Valley areas, where housing demand has outpaced supply causing housing prices to escalate rapidly. The Palo Alto Housing Element highlights the challenges the city faces in expanding its housing supply. With limited vacant land for development and smaller lot sizes, constructing multi-family housing becomes more challenging. Furthermore, Palo Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 23  Packet Pg. 30 of 389  21 Existing Conditions Report | Land Use Alto has the highest impact and capacity fees in the region. These fees make is more expensive to develop in Palo Alto. Additionally, there is a high number of jobs compared to residents, contributing to rising house costs. In 2019, the City made significant updates to its Zoning Code to boost housing production and affordability, as outlined in the City of Palo Alto’s 2023-2031 Housing Element. These changes removed residential density standards in commercial mixed- use zoning districts and introduced minimum density requirements in multi-family residential districts. Ground-floor commercial retail requirements were reduced for residential mixed-use projects, and the Floor-Area-Ratio (FAR) increased through the Housing Incentive Program (HIP). Additionally, there were reductions in residential open space and parking requirements, all aimed at increasing housing production. Affordable Housing Palo Alto is committed to affordable housing, with the second-largest affordable housing inventory in Santa Clara County. The city has allocated $52 million to support affordable housing through various funds: 1. Commercial Housing Fund: Supported by fees from new commercial developments, this fund helps create housing for the workforce. Currently, there’s less than $1.3 million available 2. Residential Housing Fund: This fund, with around $365,000 available, supports different types of affordable housing projects, including new constructions, acquisitions, and rehabilitations. 3. Community Development Block Grant (CDBG) Fund: Administered by HUD, this federal funding supports community development and housing activities in Palo Alto. In 2021, Palo Alto received $536,756 in funding 4. Home Investment Partnership (HOME) Fund: This fund focuses on projects benefiting low- and moderate-income families, preventing slum elimination, and addressing urgent community needs. In 2021, $536,756 was allocated for projects like home repairs and rental relief assistance. 5. Below Market Rate (BMR) Emergency Fund: Developers building three or more residential units in Palo Alto must contribute at least 15 percent of units at below market rates for moderate-income households, ensuring a stock of affordable housing in the city. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 24  Packet Pg. 31 of 389  22 Existing Conditions Report | Land Use Notable projects that have used Palo Alto’s affordable housing funding since 2017 include: • Project Homekey: Providing 88 rooms at 1237 San Antonio Road, benefitting over 200 individuals annually. The City contributed $11 Million in land and operational expenses. • Mitchell Park Place: Featuring 50 units at 525 East Charleston Road, designed for residents with intellectual or developmental disabilities. The City contributed $3 million to the project. • Educator Workforce Housing: Offering 110 units for teachers and staff at 231 Grant Avenue. The City contributed $3 million toward the project. • Wilton Court: Providing 59 units at 3705 El Camino Real, catering to adults with disabilities. The City contributed $20.5 million toward the project. • Buena Vista Mobile Home Park: Successful preservation efforts with 117 units at 3980 El Camino Real, supported by the city’s $14.5 million contribution. • Mayfield Place: A partnership with Stanford University, resulting in the construction of 70 affordable units, located at 2500 El Camino Real. In Palo Alto, many local non-profits are working to provide affordable housing options. Here is a list of affordable housing organizations in the area, all dedicated to making housing safe and accessible for residents. • Alta Housing • Community Housing Developer • Eden Housing • HIP Housing • HomeFirst • Housing Authority, San Clara County • Housing Industry Foundation • Mid Pen Housing • Stevenson House Opportunity Sites The City of Palo Alto plans to rezone sites to meet their remaining RHNA requirements. The City used nine rezoning strategies to identify opportunity sites. The nine strategies are as follows: Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 25  Packet Pg. 32 of 389  23 Existing Conditions Report | Land Use 1. General up-zoning of sites that allow for multi-family residential use, 2. Sites located within half-mile of a CalTrain station, 3. Sites within half-mile of high-frequency bus transit corridors, 4. Parking lots owned by the City, 5. Vacant parcels and surface parking surrounding local faith-based institutions, 6. Sites within the General Manufacturing (GM) zone, 7. Sites within Research, Office, and Limited Manufacturing (ROLM) zone, 8. Sites owned by Stanford University, 9. And additional sites identified by City staff. Within the San Antonio project area, the city has identified 48 opportunity sites (see Figure 6). Among these sites, 34 are currently zoned as GM but can be rezoned to allow high-density residential use. The GM sites can accommodate 885 housing units. The city has also identified an additional 13 opportunity sites for upzoning, enabling a higher density than currently permitted. These 13 sites are zoned for CS, RM-20, and RM-30, collectively adding 302 units. Additionally, there is one opportunity site within a quarter-mile of a Caltrain station. This site is a large surface parking lot and has the potential to add 50 housing units. Furthermore, the Housing Element has highlighted one pipeline project located at 788 San Antonio Avenue, which is set to add 102 new housing units. In total, these sites represent 1,289 housing units within the project area. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 26  Packet Pg. 33 of 389  24 Existing Conditions Report | Land Use Figure 6 - Opportunity Sites Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 27  Packet Pg. 34 of 389  25 Existing Conditions Report | Land Use Mountain View Adjacent Land Use Designations The properties adjacent to the project are are designated Low-Density Residential, Medium-Density Residential, Medium High-Density Residential, General Commercial, General Mixed-Use, Mixed-Use Corridor, General Industrial, Industrial/Regional Commercial, and High-Intensity Office (see Figure 7). These nine adjacent land uses are defined and described in Table 5 below. The mix of land uses adjacent to the project area are spread evenly across the border. However, Low-Density Residential and General Industrial land uses make up the majority of adjacent land use. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 28  Packet Pg. 35 of 389  26 Existing Conditions Report | Land Use Figure 7 - Adjacent Land Use in Mountian View Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 29  Packet Pg. 36 of 389  27 Existing Conditions Report | Land Use Land Use Designations Allowed Density/FAR Low-Density Residential Detached, single-family houses and similar uses compatible with a quiet living environment. 6 du/ac Medium-Density Residential A mix of single- and multi-family housing with a residential character appropriate to a range of densities and a broad mix of housing types. 13-25 du/ac Medium High-Density Residential Multi-family housing such as apartments and condominiums, with shared open space for common use. 26-35 du/ac General Commercial A broad range of commercial and light industrial uses serving businesses and residents, such as automotive repair, retail and wholesale businesses, carpentry shops, veterinary clinics, and similar types of uses. 0.4 FAR General Mixed-Use A mix of commercial, office, and residential uses. 1.35 FAR (approx 43 du/ac) 0.50 FAR can be office and commercial Mixed-Use Corridor Allows a broad range of commercial, office, and residential uses and public spaces serving both surrounding neighborhoods and visitors from nearby areas. 1.85 FAR (approx 60 du/ac) 0.50 FAR can be office and commercial General Industrial Production, storage, and wholesale of goods and services to create a broad industrial base. 0.35 FAR Industrial/Regional Commercial Regional commercial and some continued light manufacturing and research and development uses. 0.5 FAR High-Intensity Office Major corporations, financial and administrative offices, high-technology industries, and other scientific facilities, as well as supporting retail and service uses. 0.35 FAR Table 5 - Adjacent Land Use Designations in Mountain View Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 30  Packet Pg. 37 of 389  28 Existing Conditions Report | Land Use Adjacent Zoning The properties adjacent to the project area are zoned as Single-Family (R-1), Commercial/Residential-Arterial (CRA), Commercial-Service (CS), General Industrial (MM and MM-40), and Planned Community/Precise Plan (P) (see Figure 8). General Industrial (MM-40), located between Middlefield Road and US Highway 101, and Single- Family Residential (R-1) zones make up the majority of adjacent land use. Single-Family (R-1) zoning is designated for detached, single-family dwellings, dual urban opportunity developments, and similar uses that align with a peaceful, family- oriented living environment. This district is in line with the low-density residential land use designation of the General Plan. Commercial/Residential-Arterial (CRA) zoning district allows for a wide variety of commercial, office, and residential uses situated along the city’s primary traffic routes. It is intended for businesses that serve the local community and also cater to visitors from outside the city. This district accommodates hotels, motels, retail stores, restaurants, offices, housing, and similar compatible uses. Commercial-Service (CS) zoning district permits service commercial and industrial activities that cater to the needs of local residents and businesses. Such activities encompass automotive repair, retail and wholesale businesses, carpentry shops, veterinary clinics, and similar compatible uses. General Industrial (MM/MM-40) zoning was created to promote responsible industrial development within the city, offering a dedicated environment for such purposes. It is governed by regulations that ensure clean air and water in the bay area, and protect neighboring residential areas from potential hazards, noise, or other disruptions. Planned Community/Precise Plan (P) zoning is established to accommodate uses or combinations of uses suitable for planned area development. It should only be applied to areas that, due to factors like proximity to other zoning districts, topography, location, size, shape, or existing development, need special consideration to be effectively integrated into the community and adjacent districts. The intent is to support planned circulation patterns, residential densities, coverage limits, and the preservation of open spaces, following modern land planning and zoning principles. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 31  Packet Pg. 38 of 389  29 Existing Conditions Report | Land Use Figure 8 - Adjacent Zoning in Mountain View Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 32  Packet Pg. 39 of 389  30 Existing Conditions Report | Land Use Relationship Between Palo Alto and Mountain View Palo Alto and Mountain View have a strong relationship not only as geographical neighbors but as partners sharing resources for common objectives. Their collaboration involves important elements such as fire protection and water quality control, with Mountain View relying on the recycled water supply from the Palo Alto Regional Water Quality Control Plant. Additionally, in emergency scenarios, Mountain View is seamlessly integrated into the contingency plans of both Palo Alto and Sunnyvale through shared emergency water lines. Law enforcement dispatch operations are also a joint effort, involving Palo Alto, Los Altos, and Mountain View. Sustainability initiatives are manifested in shared endeavors, most significantly at the Sunnyvale Materials Recovery and Transfer Station, which serves as a unified waste collection facility for Palo Alto, Mountain View, and Sunnyvale. However, the relationship between the two cities has some challenges. A perfect example is the shared agreement between Palo Alto and the Shoreline Amphitheatre to mitigate noise concerns stemming from seasonal concerts. Google Alphabet was created through a corporate restructuring of Google in October 2015 and became the parent company of Google as well as several of its former subsidiaries, including Calico, X, CapitalG, and Sidewalk Labs. With 19.9 million square feet, Alphabet has a Bay Area footprint that’s 38 percent larger than Apple’s. Alphabet’s holdings, calculated by commercial real estate research firm CoStar Group, reflect its vast and expanding operations in the Bay Area. Google, Alphabet’s largest division, employs more than 34,000 people in the Bay Area. 20,000 of those employees work in Google’s home, Mountain View, with 1,000 more working in Palo Alto according to CoStar Group. Google plays a significant role in the urban form of both Palo Alto and Mountain View. The company has a large influence in shaping the urban landscape with its strategic housing policies. With the objective of minimizing employee commute times, Google envisions the construction of approximately 13,000 housing units across the South Bay Area, with a significant emphasis on Mountain View. The submission of plans for two mixed-use developments, the Middlefield Park and North Bayshore master plans in Mountain View, indicates a substantial housing influx, forecasting nearly 9,000 additional units in the coming decades. Google’s expanding influence can be seen in its real estate investments. The recent acquisition of a sizable manufacturing facility at 3850 Fabian Way, in close proximity to the San Antonio Road project area, hints at the potential extension of Google’s presence into Palo Alto. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 33  Packet Pg. 40 of 389  31 Existing Conditions Report | Land Use In May of 2022, Google opened the doors to its new sustainable Bay View campus in California, marking the first time the company has developed one of its own major campuses. About twelve and a half miles from San Antonio Road, the project is all- electric, net water positive, and is the largest geothermal installation in North America. It covers 17,000 acres adjacent to open space, has two office buildings, a 1,000-person event center, and 240 short-term employee accommodation units. Even with the included accommodation units, the new campus is sure to increase the demand for housing in the surrounding communities, including the San Antonio Road area. North Bayshore Master Plan On June 13, 2023, the Mountain View City Council approved the North Bayshore Master Plan, a collaborative effort between Google LLC and LendLease, to establish a mixed- use neighborhood in North Bayshore. The project includes demolishing all buildings and improvements to construct up to: • 7,000 residential units • 26.1 acres of public parks and open spaces • 233,990 square feet of retail spaces • 55,000 square feet of community facilities • 3.14 million square feet of office space • New public and private streets, along with bicycle and pedestrian improvements • A private district utility system Approvals also include a 30-year Development Agreement and a Tentative Map to create 37 new parcels (including condominium and commercial lots). The Council also certified a Subsequent Environmental Impact Report and adopted a statement of overriding considerations. The 153-acre Master Plan area is bounded by Charleston Road to the north, Stevens Creek to the east, Space Park Way to the south, and Huff Avenue to the west. The plan area also includes portions of the Gateway Master Plan area located at the northwest corner of Shoreline Boulevard and the US 101 freeway northbound on-ramp; six parcels between San Antonio Road and Marine Way; and the Shoreline Amphitheatre parcel north of Amphitheatre Parkway. The Master Plan is located in the P-39 (North Bayshore) Precise Plan and the PF (Public Facilities) zoning district. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 34  Packet Pg. 41 of 389  32 Existing Conditions Report | Land Use Key Terms • Comprehensive Plan: A comprehensive plan, also referred to as a general plan or master plan, is a comprehensive policy document that informs future land use decisions. It establishes land use designations and policies that identify a range of zoning options that can be applied to property. • Element: California Law requires specific topics, also called “Elements,” to be covered in a general plan. Required elements include land use, circulation, housing, conservation, open space, noise, and safety. • GHG (Greenhouse gas): gases in the earth’s atmosphere that trap heat causing an increase in average surface temperature. The major source is the burning of fossil fuels- coal, natural gas, and petroleum. • Housing Element: The housing element provides an assessment of current and future housing needs and outlines a strategy for housing objectives, policies, and initiatives. • Land Use Element: The purpose of the land use element is to designate the proposed general distribution, general location, and extent of uses of the land in the city. • Land Use Designations: A description of policies relating to existing and future land use and density of development with which all future zoning bylaws and amendments must be consistent. • RHNA: The Regional Housing Needs Assessment is a California requirement making cities and county areas plan for new housing to accommodate future growth. This assessment operates on an eight-year cycle. • SB (Senate Bill): proposed legislation • VMT (Vehicle Miles Traveled): measures the amount of travel for all vehicles in a region over a period of time Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 35  Packet Pg. 42 of 389  33 Existing Conditions Report | Land Use Sources Avalos, G. (2018, December 11). Google gobbles up huge Palo Alto building owned by satellites maker. The Mercury News. https://www.mercurynews.com/2018/12/11/ google-gobbles-up-huge-palo-alto-building-owned-by-satellites-maker/ City of Mountain View. (n.d.). A Codification of the General Ordinances of the City of Mountain View, California. Municode. https://library.municode.com/ca/ mountain_view/codes/code_of_ordinances?nodeId=PTIITHCO_CH36ZO City of Mountain View. (2012, July 12). Mountain View 2030 General Plan. City of Mountain View. https://www.mountainview.gov/home/ showpublisheddocument/6469/638214115708670000 City of Palo Alto. (n.d.). Community Development Block Grant. City of Palo Alto. https://www.cityofpaloalto.org/Departments/Planning-Development-Services/ Housing-Policies-Projects/Community-Development-Block-Grant City of Palo Alto. (n.d.). Greenmeadow Historic District. City of Palo Alto. https://www. cityofpaloalto.org/Departments/Planning-Development-Services/Historic- Preservation/Historic-Districts/Greenmeadow-Historic-District City of Palo Alto. (n.d.). Housing Element Public Web App. City of Palo Alto GIS. https://gis.cityofpaloalto.org/portal/apps/webappviewer/index. html?id=990a1123dd204297a198df35af92a61c City of Palo Alto. (n.d.). Housing Policies & Projects. City of Palo Alto. https://www. cityofpaloalto.org/Departments/Planning-Development-Services/Housing- Policies-Projects City of Palo Alto. (n.d.). Interactive Map. Palo Alto Housing Element Update. https:// experience.arcgis.com/experience/7a1f0356697345479bc63099e4e1b83d/ City of Palo Alto. (n.d.). Palo Alto Municipal Code. American Legal Publishing. https:// codelibrary.amlegal.com/codes/paloalto/latest/overview City of Palo Alto. (2017). City of Palo Alto Comprehensive Plan. City of Palo Alto. https://www.cityofpaloalto.org/files/assets/public/v/2/planning-amp- development-services/3.-comprehensive-plan/comprehensive-plan/full-comp- plan-2030_with-june21-amendments.pdf Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 36  Packet Pg. 43 of 389  34 Existing Conditions Report | Land Use City of Palo Alto. (2023, May 15). Status Update on the Development of the 2023-2031 Housing Element. City of Palo Alto. https://www.cityofpaloalto.org/News- Articles/City-Manager/Status-Update-on-the-Development-of-the-2023-2031- Housing-Element Elias, J. (2023, April 21). Google’s 80-acre San Jose mega-campus is on hold as company reckons with economic slowdown. CNBC. https://www.cnbc.com/2023/04/21/ googles-80-acre-san-jose-mega-campus-on-hold-amid-economic-slowdown-. html Google. (n.d.). North Bayshore Master Plan. North Bayshore. https://realestate. withgoogle.com/northbayshore/plan/ National Conference Of State Historic Preservation Officers. (n.d.). National Historic Preservation Act Of 1966. NCSHPO. http://rb.gy/thpbu Plan Bay Area. (n.d.). Plan Bay Area 2050 (2021). Plan Bay Area 2050 +. https://www. planbayarea.org/plan-bay-area-2050 Sheyner, G. (2021, October 15). Palo Alto scrambles to react to barrage of new housing laws. Palo Alto Online. https://paloaltoonline.com/news/2021/10/15/palo-alto- scrambles-to-react-to-barrage-of-new-housing-laws Sheyner, G. (2023, September 19). City hopes to lure growth — and grants — to San Antonio Road. Palo Alto Online. https://www.paloaltoonline.com/ news/2023/09/19/palo-alto-looks-to-steer-growth----and-grants----toward- san-antonio-road Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 37  Packet Pg. 44 of 389  Transportation Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 38  Packet Pg. 45 of 389  36 Exisitng Conditions Report Transportation Introduction This Existing Conditions Report provides an in-depth analysis of the transportation policies and infrastructure that is evident on the road and within the broader Palo Alto area. It is intended to document the vehicular and pedestrian conditions on San Antonio Road while providing context with the neighboring city of Mountain View and the County of Santa Clara. Information and data in this document were collected from multiple sources including City and County documents and available transportation data. Major Findings • Bicycle Facilities: Per the Bicycle and Pedestrian Transportation Plan, there are minimal bikeway facilities on the road. Sharrows are present but not consistently applied along San Antonio Road. There is minimal bike parking for the public within the project area. • Pedestrian Facilities: Most blocks have sidewalks on at least one side of the road. Areas where sidewalks are nonexistent are near the major expressways bordering the project area. There are no opportunities for pedestrian crossings on San Antonio Road over Alma Street or Highway 101, making it difficult to use this road as a pedestrian. • Roadways: Connecting sections of East Charleston Road and Middlefield Road are below the threshold at 16,126 and 14,578 vehicles per day respectively. According to National Association of City Transportation Officials, four lane roads that have a capacity of up to 25,000 vehicles per day can function as three lane roads. Average LOS of C and D grades at intersections of San Antonio Road and East Charleston Road and Middlefield Road in 2017. • Public Transportation: Caltrain has approximately 300 daily users of the station. Route 21 has one to two dozen daily users at three stops in the project area. San Antonio Shopping Center is the closest public transit hub with stops from VTA buses 21, 40, 522, 22, Mountain View Community Shuttle, MVGo Shuttle, Marguerite Shuttle (Stanford University). • Transportation Demand Management: The City of Palo Alto collaborates with the Palo Alto Transportation Management Association to implement commuter programs that will reduce single-occupant vehicle trips. Although these programs currently serve only downtown Palo Alto, the success of their performance can bring greater TDM efforts to the San Antonio Road Corridor. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 39  Packet Pg. 46 of 389  37 Exisitng Conditions Report Transportation • Safety: San Antonio Road and Middlefield Road are recommended as a walking route for Safe Routes to School (SRS), but not as a biking route. The recommended biking and walking route is at Mackay Drive and San Antonio Avenue. There is a section of East Charleston Road between Fabian Way and San Antonio Road that is not designated a SRS, opportunity to complete connection. Around half of vehicle collisions in Palo Alto are caused by speeding. • Parking Services: Although none of the City’s existing parking programs serve the San Antonio Road Corridor, the City’s code allows residents and institutions to petition for the expansion of some of these programs to their neighborhoods. Along with these programs, parking reductions for multi-family developments and retail establishments can apply to the project area. • Airport: Although both the Palo Alto Airport and the Moffett Federal Airfield have flight tracks flying over the top corner of the project, north of Highway 101, there is very little noise and safety impacts affecting the San Antonio Road Corridor. The only limitation to potential development along San Antonio Road is a building height limitation of 382 feet above sea level. Regulatory Setting This section will provide a brief overview of the state laws/policies and local laws/ policies that directly affect transportation in the Palo Alto area. This regulatory framework enables decision-makers to make well-informed decisions about transportation and its infrastructure within the city. Federal Americans with Disabilities Act (ADA) The ADA legislation is designed to prohibit discrimination against individuals with disabilities and ensures their full participation in all qualities of life including employment, transportation, public accommodations, and more. It mandates that employers, businesses, and public entities make reasonable and just accommodations to provide equal opportunities and access to those with disabilities. ADA requires that all facilities, either Title II (public) or Title III (private), must be accessible and usable by people with disabilities. Government agencies like the U.S. Department of Transportation (USDOT) and the Federal Highway Administration (FHWA) have adopted ADA policies into statewide planning efforts and transportation systems. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 40  Packet Pg. 47 of 389  38 Exisitng Conditions Report Transportation State California Complete Streets Act of 2008 (AB 1358) AB 1358 requires that the circulation element of any general plan must address transportation from a multi-modal perspective. It also requires such elements to consider the different users of a transportation system and the modes that each user may use. Street designs must encompass complete street principles to meet the needs of all users– drivers, cyclists, pedestrians, or transit passengers– regardless of age or physical ability. Regional Plan Bay Area Plan Bay Area is a long-range plan designed to incorporate sustainable and equitable growth principles for the Bay Area Region. Developed through collaboration between transportation agencies, regional authorities, and local governments, it addresses critical issues like land use, housing, transportation, and environmental preservation. The plan aims to reduce greenhouse gas (GHG) emissions, improve transportation infrastructure, create vibrant communities, and enhance the overall quality of life in the region. Local Palo Alto Bicycle and Pedestrian Transportation Plan (BPTP) Adopted in 2012, the BPTP is a comprehensive initiative aimed at promoting walking and cycling as sustainable modes of transportation within the city of Palo Alto. The plan outlines a series of improvements and strategies including protected bike lanes and pedestrian-friendly infrastructure. It seeks to create a safer, more accessible, and interconnected network of bike and pedestrian pathways. The goal is to reduce reliance on motor vehicles and encourage active modes of transportation, which promotes public health and contributes to a greener and more sustainable urban environment. An update to the plan began in the summer of 2023 to address newer trends in bicycle and transportation technology and to better reflect the current needs of the community. Palo Alto 2030 Comprehensive Plan The Comprehensive Plan is a visionary document that outlines the long-term development and land use goals for the City of Palo Alto. It provides a comprehensive framework for guiding housing, transportation, community development, urban growth, and sustainability. The Transportation Element of the Comprehensive Plan emphasizes the promotion of cycling, walking, and public transportation as alternative modes of transportation. Additionally, it aims to enhance connectivity between Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 41  Packet Pg. 48 of 389  39 Exisitng Conditions Report Transportation neighborhoods and reduce greenhouse gas emissions, all while creating a more efficient and environmentally friendly system within the city. The Comprehensive Plan is currently being updated. Palo Alto Municipal Code The Palo Alto Municipal Code discusses specific transportation regulations within the city. These sections address various aspects of transportation, such as bicycle lanes, pedestrian safety, parking, and trucking regulations. These sections aim to reduce congestion, manage traffic flow, provide safe and efficient movement of vehicles and pedestrians, and maintain the city’s commitment to sustainable transportation options. Roadway Network Roadway Characteristics Road hierarchy refers to the organization and classification of roads based on their functions, capacity, and importance in a transportation network. The hierarchy is designed to efficiently manage traffic flow, facilitate transportation, and meet the diverse needs of users. See Figure 1 for all the road typologies within the project area. Highways Highways are high-capacity, high-speed roadways that provide a regional connection between cities, counties, and states. They typically have designated points for movement on and off the roadway. • Highway 101, at the northmost extent of San Antonio Road and with a posted speed of 65 miles per hour, is the key regional road connector for Palo Alto. There are six lanes in each direction, with two being express lanes for commuter traffic. FASTRAK, the Bay Area regional tolling system, charges tolls for use of these express lanes along the entire section of Highway 101 within Palo Alto. The highway is the most direct route through the peninsula for travel from the South Bay and areas of the East Bay. Figure 2 - Arterial at East Charleston Road and San Antonio Road. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 42  Packet Pg. 49 of 389  40 Exisitng Conditions Report Transportation Figure 1 - Existing road typologies Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 43  Packet Pg. 50 of 389  41 Exisitng Conditions Report Transportation Arterials Arterial roads are high-capacity, medium-speed roadways that direct traffic from smaller streets and collectors towards highways and freeways. See Figure 2. • San Antonio Road is a high-capacity arterial road, with a posted speed limit of 35 miles per hour. San Antonio Road consists of four travel lanes, with up to three turn lanes at the intersection of San Antonio Road and Middlefield Road and San Antonio Road and East Charleston Road. On-street parking is limited to the side of the road adjacent to the Greenhouse condo complex. San Antonio Road provides the north/ south lateral connection between Highway 101, Alma Street, and State Route 82. The adjacent roadways that provide this type of connection are Rengstorff Avenue in Mountain View and the Oregon Expressway in Palo Alto. • Middlefield Road consists of four travel lanes with a center turn lane, with a posted speed limit of 25 miles per hour. Immediately west of the project area along Middlefield Road are multiple public facilities within proximity. They include Cubberley Community Center, Mitchell Park, JLS Middle School, and Herbert Hoover and Fairmeadow Elementary Schools. The northern section past San Antonio Road offers street parking, while the opposite section towards Mountain View does not. • East Charleston Road has four travel lanes with a central turn lane, with a posted speed limit of 25 miles per hour. Within the project area, East Charleston Road fronts the Taube Koret Campus. Outside of Palo Alto, the road provides the main connection with the Costco shopping center and another onramp for southbound Highway 101 to the east in the city of Mountain View. There are no provisions for street parking along Middlefield Road within the project area. • Alma Street/Central Expressway is a four-lane road with a central turn lane that widens to two at intersections, with a posted speed of 35 miles per hour. Along the north face of Alma Street residential, commercial, and office areas have no frontage towards the street. Parallel to the south side of Alma Street is the right of way for Caltrain. At the intersection of Alma Street and San Antonio Road, there is a highway- like interchange system. Collectors and local roads Collectors and local roads are low- capacity, low-speed streets that provide access to mainly lower- density residential homes. Speeds Figure 3 - Local roads at Dake Avenue. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 44  Packet Pg. 51 of 389  42 Exisitng Conditions Report Transportation for these roads throughout Palo Alto are 25 miles per hour. All of these types of roads within the project area have two lanes. See Figure 3 for an example of a local road. • East Bayshore Road is a frontage road that runs parallel to Highway 101. The road has one travel lane in each direction, with a third turn lane at the intersection with San Antonio Road. There is no on-street parking. • San Antonio Avenue serves as a collector for the east side of the Greenmeadow neighborhood. It runs parallel to San Antonio Road as a frontage road between Alma Street and Middlefield Road. • Nita Avenue provides access to the north end of the Alphabet office complex and the Monta Loma neighborhood in Mountain View. • Leghorn Street is opposite the Greenhouse condo complex and continues toward Mountain View. Traffic Volume Highway 101 as of 2017 Caltrans counts had a northbound average annual daily traffic (ADDT) count of 230,000, and a southbound AADT of 213,200, measured at the San Antonio Road intersection. Alma Street according to 2016 average daily traffic (ADT) counts was the most traveled arterial road, with 28,895 vehicles total along the section between East Charleston Road. Extrapolating from the section that ends at Fabian Way, East Charleston Road had an ADT of 16,126. Middlefield Road between East Charleston Road and San Antonio Road had 14,578 vehicles. East Bayshore Road as a small frontage road has an ADT of 4,957 vehicles. Traffic Control Intelligent traffic control devices have been introduced throughout the project area. The SynchroGreen Adaptive Control System installed along San Antonio Road adapts the signal timing to match traffic patterns and volume. In the most recent data from Figure 4 - Intelligent traffic control along San Antonio Road. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 45  Packet Pg. 52 of 389  43 Exisitng Conditions Report Transportation 2013 to 2017, the city has recorded single-digit percentage reductions in motor vehicle volume at intersections along San Antonio Road (See Figure 4). Trucking Chapter 10.48 of the Palo Alto Municipal Code designates the San Antonio corridor as a corridor for heavy and oversized truck movement. Designated truck routes include through and local trucks, allowing these vehicles a means to travel across Palo Alto without having to obtain permission from the City. All other roads except those designated in the section prohibit these categories of trucks from traversing them. Bicycle Network Bicycle Facilities The existing bikeway network follows California’s classification of bicycle facilities. These consist of Class I, Class II, and Class III bikeways. Figure 5 depicts the current network. Palo Alto’s network consists primarily of class II lanes, or one-way facilities on either side of the roadway with no road buffers. Half of San Antonio Road has a class III bike lane, but there is no bike lane covering the rest of this road. Class I Bikeways Class I bikeways, or shared-use bike paths, are paved right-of-way paths designated solely for bicyclists, pedestrians, and other non-motorized travel modes. These paths are physically buffered from vehicular traffic providing additional safety for users. Class I paths are predominantly present where roadways are absent and provide critical connections to other areas of the city. San Antonio Road has no bikeways for this class. Class II Bikeways Class II bikeways are classified as striped lanes for bicyclists. These facilities are the most common classification through Palo Alto. They typically have a single stripe of paint separating the bicycle lane and the travel lane, but may also have a striped buffer area instead. The BPTP recommends these lanes be a minimum of four feet wide from the curb if there is no street parking or five feet wide if there is street parking. This bikeway class is absent on San Antonio Road but is present on nearby streets in the project area. Class III Bikeways Class III bikeways, commonly referred to as ‘sharrows’, are shared vehicular/bicyclist travel lanes on a roadway. These typically are designated for low-speed, low-volume roads to increase rider safety and prevent accidents. Such roadways are marked with Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 46  Packet Pg. 53 of 389  44 Exisitng Conditions Report Transportation Figure 5 - Existing bicycle infrastructure Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 47  Packet Pg. 54 of 389  45 Exisitng Conditions Report Transportation appropriate signage on the road with paint and have standard signs along the curb. Almost a mile of San Antonio Road has class III sharrows but this is not continuous along the whole road. Class IV Bikeways Class IV bikeways are physically separated lanes from the traffic lanes using planters or bollards. While similar to bike boulevards, these are meant for higher-speed and higher-volume roads and further reduce the interaction between cyclists and motor vehicles. There are currently no class IV bikeways in Palo Alto. Figure 6 shows the different types of bike lanes Bikeway Design Guidelines The National Association of City Transportation Officials (NACTO) recently created the Urban Bikeway Design Guideline. This 2014 document provides strategies for cities to develop state-of-the-art techniques that can help create streets that are safe and efficient for bicyclists. Palo Alto uses these guidelines to improve existing bikeway infrastructure to promote bicycling as a sustainable form of transportation. Some design guidelines implemented in the project area include using green colorized pavement to denote the bike “lanes” and improving signage for both bicyclists and vehicles. Bicycle Parking Bicycle parking facilities are important for securely locking and storing bicycles and other forms of active transportation when not in use. The risk of theft, vandalism, or just inconvenience is high for bicyclists who do not have access to convenient storage or parking facilities at their destination. Downtown centers, or areas with high-mixed- use capabilities, are high-priority areas for bike infrastructure and parking facilities. The lack thereof results in the use of light poles, ADA railings, trees, and other urban infrastructure as spaces to lock bikes. Figure 6 - Bike Lane Classifications Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 48  Packet Pg. 55 of 389  46 Exisitng Conditions Report Transportation Short-term and Long-term Facilities Short-term facilities are typically known as sidewalks or on-street “racks”, providing enough space for the user to lock their bike frame to the rack. These facilities are located in publicly accessible areas for convenience to the user and are intended to provide storage for up to several hours. Bike racks in public spaces are less secure and have fewer safety precautions during intended use. Long-term facilities allow for the entire bicycle to be stored within a “bike locker or cage”, providing a high level of security but are less convenient. Long-term storage is more popular due to the increase in electric bikes, which are typically more expensive and more likely to be stolen. These facilities are more popular during inclement weather and are often found indoors or in covered areas. Bicycle Parking on San Antonio Road There are bike stations located at most transit hubs and Caltrain stations throughout the city. At the San Antonio CalTrain station, there are 18 bike spaces (See Table 1). These stations are inconveniently located on the southern side of Alma Street, making it difficult to access with the poor infrastructure available. There are additional bike racks sparsely located at various businesses along the corridor, but an initial visual survey found a lack of sufficient bike racks in the area. Zone Station E-Lockers Rack Spaces Bike Share Bike Valet and Garages 3 Palo Alto 16 Caltrain BikeLink 178 -Secure indoor bike parking 3 California Ave 8 Caltrain BikeLink 33 -- 3 San Antonio 8 Caltrain BikeLink 18 -- Table 1 - Caltrain Bike Parking Options by Station in Palo Alto Bikes Onboard Caltrain Caltrain allows those with bikes to park them on their train during a commute. A train will typically have two to three bike cars with limited bike spaces per car. Caltrain bike cars are usually marked by yellow signs or paint. Lightweight, aluminum, or steel city bikes are recommended due to their compact size, allowing more bikes to be stored. There is no charge for storing a bike on board, but there are rules and regulations that are specific to the train. In addition, special permission to have a bike at the train station may be required in some places. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 49  Packet Pg. 56 of 389  47 Exisitng Conditions Report Transportation Current Projects & Programs Bike Rack Program The City has a program that offers free bike racks to businesses within city limits. Those businesses are responsible for the installation of the racks. The program is not publicized well by the City and very few businesses know about it. Neighborhood Traffic Safety and Bicycle Boulevard Projects (NTSBB) NTSBB projects work to expand the growing network of bicycle boulevards and traffic-calming infrastructure throughout the city. Such projects create low-stress environments and prioritize safety for pedestrians and bicyclists for consistent use. The City’s current boulevard project on Ross Road aims to improve youth safety during usage and reduce vehicular mobility without causing confusion. There have been proposals to create bike boulevards that cross San Antonio Road, but none of these have come to fruition. Pedestrian Network Pedestrian Facilities The existing pedestrian network in the city consists of hundreds of miles of sidewalks, courtyards, trails, and private pathways. According to the BPTP, Palo Alto had over 250 miles of sidewalks. These facilities are dissimilar in their appearance, condition, and usability, however. About half of San Antonio Road has pedestrian infrastructure, but there are gaps in the sidewalk network. Sidewalks The city had twenty-three sidewalk districts created following a 1985 sidewalk survey documenting the conditions and damage across the network. Since 1985, the districts have expanded to include newer facilities, including private pathways and trails. Many sidewalk facilities are in poor condition and experience little foot traffic. There are an additional 15 miles of Class I, or shared-use, pathways in the city. About half of San Antonio Road has standard sidewalk facilities, as shown in Figure 7. There are no sidewalk connections to Highway 101 and Alma Street, which are the two main arterials that form the boundary of the project area. There are also no pedestrian connections going northbound towards the Baylands or south across Alma Street towards the Caltrain station. The central section of San Antonio Road has sidewalks in good condition with easy access to nearby retail and landmarks. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 50  Packet Pg. 57 of 389  48 Exisitng Conditions Report Transportation Figure 7 - Existing pedestrian conditions Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 51  Packet Pg. 58 of 389  49 Exisitng Conditions Report Transportation Trails Many unpaved trails exist within the regional open space areas, such as the Baylands, and in large private developments. The trails also have trailheads that prevent unwanted vehicles from entering the trails. These devices often make accessibility worse. The Baylands Nature Preserve Trail connects to the northern end of San Antonio Road north of Highway 101, but pedestrian facilities do not extend over Highway 101 and connect to the rest of San Antonio Road. Current Programs & Policies Sidewalk Repair Capital Contract Program The annual sidewalk repair program services all 23 sidewalk districts through the Public Works Department’s Engineering Services Division. It focuses on pressing issues such as meeting ADA requirements, removing and replacing damaged sidewalks, curb and gutter replacement, and other related work. The program was completed in 2016 and is currently being used to monitor and assess repairs to the network. Sidewalk, Curb, and Gutter Repair Program The Public Works Engineering Services Division runs the sidewalk, curb, and gutter repair program to repair pedestrian infrastructure. This program is independent of the Capital Contract Program districts and focuses solely on damaged sidewalk areas. Reporting damages is done through the division, but the PaloAlto311 program is aiming to streamline this process. San Antonio Road/Charleston Road Intersection Improvement Project This project is aimed at improving the infrastructure conditions at the San Antonio Road and Charleston Road intersection. The project also addresses poor vehicle level of service (LOS) and intersection operations. Four community meetings were conducted across 2018 and 2019 to gather feedback and insight from locals. A concept plan was approved in early 2020, but construction has yet to be started as of late 2023. The final design will include curb extension and protection for pedestrians in addition to improved crosswalk conditions. Public Transportation Public transportation use for the city of Palo Alto is low. As of 2014, five percent of daily trips were taken on public transportation. It should be noted that the effects of the COVID-19 pandemic have had a lasting effect on ridership numbers into the present day. VTA has only seen ridership return to 72 percent of pre-COVID numbers. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 52  Packet Pg. 59 of 389  50 Exisitng Conditions Report Transportation Rail Service Caltrain is a passenger commuter rail service that runs from Gilroy to San Jose, Palo Alto, and San Francisco. Caltrain serves as the highest-capacity regional public transit provider in the South Bay region, and the second most in the entire Bay Area after BART. In September of 2023, average weekday ridership reached 21,366. This is one- third of the ridership of February 2020. The average weekday combined boardings and alightings in 2019 was 978 people. At the same ratio between pre and post-COVID total Caltrain ridership, the average daily weekday traffic would be around 310 at San Antonio Station. The San Antonio Station is the closest Caltrain station to the project area, located on the border of Palo Alto in the neighboring city of Mountain View. Aside from San Antonio Station, Palo Alto has three other Caltrain stops. These are the California Avenue, Stanford, and Palo Alto Transit Center. The station is served by trains on the Local 1, Weekend Local 2, and Express Limited 3 routes. The station does not receive service from trains running the Express Limited 4, 5, and 7 ‘Baby Bullet’ routes. Generally, the northbound direction starts service an hour before and ends service two hours before the southbound direction during both the weekdays and the weekends. Train Schedules During the weekday, San Antonio Station receives the Local 1 and 2 trains, with the Express Limited 3 train stopping at peak commuting times. The northbound direction for the weekday at the San Antonio station has headways of around: • 45 minutes from 4:51 am to 6:20 am • 24 minutes from 6:20 am to 9:19 am • 1 hour from 9:19 am to 3:17 pm • 30-45 minutes from 3:17 pm to 11:37 pm The southbound direction during the weekday has headways of around: • 30 minutes from 5:59 am to 9:48 am • 1 hour from 9:48 am to 3:48 pm • 30 minutes from 3:48 pm to 7:50 pm • 1 hour from 7:50 pm to 1:12 am During the weekend, only Local 1 and 2 trains have stops at San Antonio, with Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 53  Packet Pg. 60 of 389  51 Exisitng Conditions Report Transportation headways of around one hour the entire day. Operating times are from 7:43 a.m. to 11:37 a.m. in the northbound direction and 9:41 a.m. to 1:17 a.m. in the southbound direction. Pedestrian Connection The connection between the San Antonio Station and the project area is limited. There are no pedestrian facilities along San Antonio Road to provide access from the station; instead, pedestrians must cross at the corner of Alma Street and Mayfield Avenue. Bus and Shuttle Service There is a collection of public, semi-public, and private transit options offered within the Palo Alto project area (See Figure 8). Palo Alto, being a city within Santa Clara County, is within the jurisdiction of the Santa Clara Valley Transportation Authority (VTA). Palo Alto also has some bus connections with SamTrans (San Mateo County) and AC Transit (Alameda County), but these routes center around the Palo Alto Transit Center and do not have as much relevance to the project area. VTA Route 21 Route 21 is the only public transit route with stops within the project area area. Headways for Route 21 are every 30 minutes on weekdays and one hour on weekends. Some key stops for Route 21 are the downtown Palo Alto Transit Center, the San Antonio Shopping Center, and the Mountain View Caltrain Station. Depicted in Figure 9, there are three stops for the local bus 21 route directly along the section of San Antonio Road. The southbound bus stop at the corner of San Antonio Road and Middlefield Road has an average weekday boarding count of 17.9 and an average weekday alightings (the number of passengers disembarking) of 9.6. The northbound direction has two Figure 8 - Transit options in the near region. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 54  Packet Pg. 61 of 389  52 Exisitng Conditions Report Transportation Figure 9 - Existing transit stops Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 55  Packet Pg. 62 of 389  53 Exisitng Conditions Report Transportation stops, one junior stop adjacent to Nita Avenue that receives 1.9 and three boardings and alightings respectively, and the senior stop between San Antonio Court and Middlefield that has an average weekday count of 4.1 boardings and 19.5 alightings. VTA Route 40 The next most relevant local bus to the project area, 41, runs parallel to San Antonio Road along Rengstorff Avenue in Mountain View. Headways for Route 41 are every 30 minutes on weekdays and one hour on weekends. Some key stops for Route 41 are the San Antonio Shopping Center, the Mountain View Caltrain Station, Foothill College, and Los Altos High School. VTA School Route 288 Route 288 is a school bus route that serves Henry M. Gunn High School. One bus serves this route before and after high school hours, only when school is in session. ACE Shuttle Orange The ACE Orange Shuttle connects employers to the Great America ACE Station in Santa Clara. There are eight trips from 06:06 am to 06:39 pm Monday through Friday that are scheduled in sync with ACE trains. There are stops along Fabian Way, the corner of Fabian Way and East Charleston Road, the corner of San Antonio Road and Casey Avenue, and Marine Way. Just south of the project area between Alma Street and State Route 82 is the San Antonio Shopping Center. While not a designated transit center, the Center hosts stops for multiple transit options, including the Mountain View Community Shuttle, Marguerite Shuttle, VTA 522 Rapid Bus, and MVGo. VTA 522 Rapid Bus The 522 Bus runs between downtown San Jose to the Palo Alto Transit Center. The stop at the San Antonio Shopping Center is at the corner of State Route 82 and Showers Drive. An average of 252 people board or alight every weekday. Headways at this stop are around every hour, from 5:28 a.m. to 10:05 p.m. As an express bus, fares are $5 for adults, which is twice the cost of a local bus fare. Mountain View Community Shuttle The City of Mountain View in partnership with Google and VTA runs a fare-free parallel shuttle service. From Monday to Friday, headways are every 30 minutes between 7 a.m. and 7 p.m. On Saturday and Sunday, headways are every hour between 10 a.m. and 6 p.m. The San Antonio Shopping Center is the most popular stop along the route, making up 29,721 (17.2 percent) and 32,270 (18.4 percent) boardings and alightings Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 56  Packet Pg. 63 of 389  54 Exisitng Conditions Report Transportation over two routes. MVGo The Mountain View Transportation Management Association is a nonprofit organization that operates the MVGo fare-free shuttle system. MVgo Routes C and D provide weekday service between the San Antonio Shopping Center at the intersection of Miller Avenue and San Antonio Road and the Bayshore area at Marine Lane and Casey Avenue. Route C operates southbound along San Antonio Road between 6:25 a.m. and 7:36 p.m., with headways of 20-40 minutes. Route D operates northbound along San Antonio Road between 6:56 a.m. and 7:37 p.m., with headways of 20-40 minutes. Both routes average between one and two riders daily at the San Antonio Road/Miller stop. Marguerite Shuttle Stanford University operates a private shuttle system that mainly runs around the campus area. The shuttle system is free and open to the public, with an annual ridership of 2.74 million in 2019. At certain periods of the week, these shuttles run outside the campus. The primary external route, the Shopping Express, travels directly to the San Antonio Shopping Center, south of the project area. On Fridays, headways are every 60 minutes between 3 a.m. and 10:47 p.m. On Saturdays and Sundays, headways are every 60 minutes between 9 a.m. and 7:47 p.m. Private Transit Options Throughout the Bay Area, a collection of over 20 registered private transportation companies offer transportation by private coach bus. They represent the seventh most popular transportation resource in the Bay Area at over 2.6 million passengers. These shuttles originated in the early 2000s by Google to transport workers to and from their campuses. Today, a wide variety of companies charter private buses for use by their employees. In a survey conducted by the Metropolitan Transportation Committee, the county of Santa Clara in 2016 had 50-100 shuttles operating per day. The most popular routes provide connections with San Francisco and Alameda counties. However, survey data is anonymous, and information regarding the operations of these companies is hard to come by due to the decentralized nature of shuttle company contracting. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 57  Packet Pg. 64 of 389  55 Exisitng Conditions Report Transportation Transportation Demand Management Transportation demand management (TDM) plays a pivotal role in shaping the future of transportation in Palo Alto. Using a series of TDM strategies, the City aims to reduce congestion by encouraging a shift from single-occupant vehicles to more sustainable, collective forms of transport such as mass transit, carpools, and private shuttles. The following sections discuss the TDM efforts that the City is currently employing. Municipal Code Section 18.52.030(i) summarizes the circumstances under which a new development must provide a TDM plan. According to the City Code, a TDM is required under these circumstances: • For projects generating 50 or more net new weekday (AM or PM peak hour) or weekend peak hour trips • For projects claiming a reduction in net new trips due to proximity to public transit or the implementation of a TDM plan • For projects requesting a parking reduction Under the authority of the Director, new developments may request a reduction of up to 20 percent of the total parking spaces required for the site. Palo Alto Transportation Management Association The City of Palo Alto often collaborates with the Palo Alto Transportation Management Association (TMA) to regulate TDM efforts. Palo Alto TMA is an independent, non- profit organization that was launched in January 2015 to assist the City’s ambitious goal of reducing single-occupant vehicle (SOV) trips by 30 percent while also prioritizing transportation and parking challenges. Since then, Palo Alto TMA has launched several employee and manager programs for commuters working in downtown Palo Alto. Although these programs currently serve only downtown employees and employers, the City’s Comprehensive Plan does note the expansion of these programs to other areas of the city depending on their performance. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 58  Packet Pg. 65 of 389  56 Exisitng Conditions Report Transportation Safety The most commonly used indicator for roadway safety is the Statewide Integrated Traffic Records System (SWITRS). It is a database of logged collisions from the California Highway Patrol. These data points are logged not only along highways but also local streets through local partner agencies. From 2018 to 2022, Palo Alto had an average of 281.8 crashes per year, with an average of 370.6 fatalities and injuries from those crashes. Safe Routes to School Palo Alto has established a Safe Routes to School (SRS) program in partnership with the Palo Alto Unified School District (PAUSD) and Palo Alto Council of PTA’s. Schools that have Safe Routes that intersect with San Antonio Road include Fairmeadow Elementary School, JLS Middle School, Hoover Elementary School, and Greendell School (See Figure 10). The establishment of SRS is particularly important due to the relatively high percentage of students that walk and bike to school. For the 2021 school year, 42 percent of elementary schoolers and 67 percent of middle schoolers either walked or biked to school. SRS materials can be accessed online, with illustrated route maps provided for all schools. All of the listed schools’ SRS intersecting San Antonio Road are shared. There is a walking and biking route that runs down Nita Avenue, crossing the intersection of Nita Avenue and San Antonio Road and running down the neighborhood street of MacKay Drive. There is a route running down San Antonio Road, and is only suggested for walking. Middlefield Road also has a walking-only suggested route. The majority of East Charleston Road is a suggested walking and biking route, except for the section between Fabian Way and San Antonio Road. Figure 10 - Safe Routes to School Map at San Antonio Road. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 59  Packet Pg. 66 of 389  57 Exisitng Conditions Report Transportation Physical Safety Improvements To increase neighborhood road safety, the Office of Transportation established the Neighborhood Traffic Calming Program (NTCP) in 2001. The NTCP outlines standard traffic calming education, enforcement, and engineering measures. Residents can petition for these safety measures to be implemented on their local streets. Locations identified by the community are measured against criteria in the NTCP to determine if interventions need to be made, and then community approval solicited. The City has identified the intersection of San Antonio Road and East Charleston Road as an area for improvement in pedestrian safety. A frontage lane exists for parking, increasing conflict between drivers and pedestrians. The proposed interventions would address the failure of drivers to yield on red right turns to pedestrians. The Palo Alto City Council in 2017 adopted a resolution that called for changes to roadway design song corridors that experience higher average speeds than the posted limit. Previous changes included signing and striping, which reduced roadway speeds by two to four miles per hour. Middlefield Road after the intersection with San Antonio Road was one of the segments targeted for design changes. Vehicle There are a number of categories for vehicle-based fatalities and crashes, such as from drugs, alcohol, speeding, and distracted driving. Drug and alcohol related fatalities and injuries crashes were an average of 24.6 per year. Distracted driving caused an average of 33.6 fatalities and injuries per year. Speeding related fatalities and injuries were the most consequential out of all the categories, with an average of 149.8 per year. Bicycle According to SWITRS data, the 2018-2022 average bicyclist fatality and injury rate has been 53.2 per year. San Antonio Road’s existing bike infrastructure are sharrows, meaning bikes use road lanes. For bicyclists, this creates conflict with fast-moving cars and trucks. A common reaction to these unsafe conditions is the riding of bicycles on sidewalks instead. This behavior puts both bicyclists and pedestrians at risk of serious injury. Pedestrian According to SWITRS data, the 2018-2022 average pedestrian fatality and injury rate has been 22 per year. San Antonio Road has average sidewalk facilities between Mackay Drive and East Charleston Road. However, as San Antonio Road approaches Alma Street and Highway 101, conditions become much more precarious, with use of a mixture of unmarked crossings and substandard walkways necessary to cross. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 60  Packet Pg. 67 of 389  58 Exisitng Conditions Report Transportation Parking Existing Parking Programs The City of Palo Alto implements several parking programs and initiatives within the city for residents, employees, and visitors. This includes the Residential Preferred Parking Program (RPP) which offers on-street permits to eligible residents and employees living or working in the six RPP districts. Employees can also apply for off- street parking permits serving garages and lots in the California Avenue and University Avenue Business Districts. The City also regulates parking downtown through its Downtown Color Zone Parking Program which enforces time limits within color zones. Refer to Figure 11 to see how parking is managed in the Downtown Parking District. The City staffs two valet attendants at the Alma/High Street garage in its Valet Assist Program to encourage the use of city-owned parking garages and lots. Figure 11 - Palo Alto’s Downtown Parking Assessment District In recent years, the City introduced its Safe Parking Program which allows churches and institutions to provide safe places to park and access amenities, serving as a form of transitional housing for Palo Alto’s vehicle dwellers population. These programs are mostly concentrated in the western half of the city. However, the RPP and Safe Parking Program allow residents and institutions to petition for these programs to operate within their neighborhoods. Currently, none of the City’s parking programs and services cover the San Antonio Road Corridor. KEY TO PARKING LOTS AND GARAGES A Emerson/Lytton Lot Ramona/University Garage Ramona/Lytton Lot Civic Center Garage Emerson/Ramona Lot Hamilton/Waverley Lot Gilman/Bryant Lot Florence/Lytton Lot Gilman/Waverley Lot Lytton/Waverley Lot Bryant/Lytton Garage Sheraton Hotel Lot Pay Toilet B C D E F G K S/L P High/Hamilton Lot High/Alma North Garage High/Alma South Garage Emerson/High Lot Cowper/Hamilton Lot Lytton/Kipling Lot Private Pay Garage Webster/Cowper Garage 30-Minute Parking Spaces Train Station Transit Stop Marguerite Shuttle Stop Bicycle Boulevard/Bikestation® Public Restroom Q R T $ WC underpass to stanford university Q High/Alma North Garage Permit Parking O Emerson/High Lot 2-Hour Parking R P High/ Hamilton Lot 2-Hour Parking Emerson/ Lytton Lot 2-Hour Parking Emerson/ Ramona Lot 2-Hour Parking Ramona/ University Garage 3-Hour Parking Ramona/ Lytton Lot 2-Hour & Senior Permit Parking Civic Center Garage 3-Hour & Permit Parking A C N B CC PURPLE ZONE CORAL ZONE 3-Hour & Permit Parking Florence/ Lytton Lot 2-Hour Parking POST OFFICE 2-Hour Parking Gil m a n / B r y a n t L o t Pe r m i t P a r k i n g Bryant/Lytton Garage Gi l m a n / W a v e r l e y L o t Pe r m i t P a r k i n g LLyttytt on Aon A vv enueenue UU nivniv ersitersit y Ay A vv enueenue HH amiltamilt on Aon A vv enueenue FF oror est Aest A vv enueenue AA l m a S l m a S t r t r e e t e e t EE m e r s o n S m e r s o n S t r t r e e t e e t BB rr yy a n a n t S t S t r t r e e t e e t WW aa vv e r e r l e l e y S y S t r t r e e t e e t WW e b s t e b s t e r S e r S t r t r e e t e e t TT a s s o S a s s o S t r t r e e t e e t KK i p l i n g S i p l i n g S t r t r e e t e e t Lytton/Waverley Lot 2-Hour & Permit Parking K K S/L F D E G Lytton/ Kipling Lot 2-Hour & Permit Parking Private Parking Garage Cowper/Hamilton Lot 2-Hour Parking Webster/Cowper Garage 3-Hour & Permit Parking T $ H WC Parking lot and garage restrictions and color zone requirements are in effect 8 a.m.– 5 p.m. Monday to Friday only, holidays excepted. Yellow commercial-loading zones, 30-minute parking spaces,white passenger-loading zones and disability designated spaces are exempt from the color-zone regulations. COLOR ZONES LIME ZONE BLUE ZONE ▲TO HW El Palo Alto Tr a n si t C e n t e r ▲ CC N H X O High/Alma South Garage 3-Hour and Permit Parking Lytton/ Waverley Lot Permit Parking Hamilton/Waverley Lot Bi k e s t a t i o n ® PT RR PT RR RR ▲ EE l C l C a m i n o R a m i n o R e a l e a l PT Pe r m i t Pa r k i n g X RR a m o n a S a m o n a S t r t r e e t e e t FF l o r l o r e n c e n c e S e S t r t r e e t e e t GG i l m a n S i l m a n S t r t r e e t e e t CC oo w p w p e r S e r S t r t r e e t e e t HH i g h S i g h S t r t r e e t e e t ▲ ▼ ▼ ▼ ▼ ▼ ▼▼▼ ▼▼ ▼ ▲ ▲ ▲ ▲▲▲▲ ▲▲ ▲▲▲▲▲▲▲▲▲▲ ▲▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲▲ ▼ ▲ ▲ ▲ ▲ ▲ ▲▲ ▲ TO HWY 280 ▲ ▲ ▲▲ ▲▲ ▲ ▲ ▲▲ Na n A g g – D e s i g n e r A r t h u r R u d a – P r o d u c t i o n M e t r o P r i n t i n g – P r i n t e r Downtown Parking Assessment District Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 61  Packet Pg. 68 of 389  59 Exisitng Conditions Report Transportation Existing Parking Conditions Because the City of Palo Alto’s existing parking programs do not expand to the San Antonio Road Corridor, street parking is unregulated within the project scope. Figure 12 - Street frontage along San Antonio is for vehicle parking only. Based on an initial site visit, on-street parking is the more common form of parking along San Antonio Road as opposed to off-street parking. Beginning at the intersection between East Charleston Road and San Antonio Road, the frontage there is completely dedicated to 33 spaces of on-street parking as seen in Figure 12. In terms of off-street parking, lots supply spaces for vehicles, especially in the northern half of the San Antonio Road Corridor where there are many light industrial businesses. An initial site visit found that some of the vehicles using these lots had to make use of the limited space provided there. This could be attributed to San Antonio Road’s function as a trucking road. Most of the light industrial businesses utilize their lot space to create alleyways to support loading trucks. There is a concentrated community of vehicle dwellers who park their RVs and cars along the streets of the San Antonio Road Corridor as shown in Figure 13. Although this is a small group of people occupying the area in parked spaces, it is important to note that the redevelopment of the corridor will pose potentially extreme impacts to this community. Figure 13 - Parked RVs along Fabian Way. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 62  Packet Pg. 69 of 389  60 Exisitng Conditions Report Transportation Parking Policies and Standards (City Documents) The City of Palo Alto’s Comprehensive Plan and Municipal Code provides a framework for how parking can be managed within the city. The following sections discuss the City’s current parking policies and standards. Palo Alto’s 2030 Comprehensive Plan Addressed in the 2030 Comprehensive Plan, the City seeks to improve parking conditions by managing the current supply and demand through a series of policies. These policies align with the City’s overarching transportation objective of enhancing the city’s walkability, promoting biking, encouraging ridesharing, and improving transit usage. Below are several important parking policies that more strongly apply to the San Antonio Road Corridor Concept Plan. • Policy T-5.1: All new development projects should manage parking demand generated by the project, without the use of on-street parking, consistent with the established parking regulations. As demonstrated parking demand decreases over time, and parking requirements for new construction should decrease. • Policy T-5.12: To promote bicycle use, increase the number of safe, attractive, and well-designed bicycle parking spaces available in the city, including spots for diverse types of bicycles and associated equipment, including bicycle trailers, prioritizing heavily traveled areas such as commercial and retail centers, employment districts, recreational/cultural facilities, multi-modal transit facilities, and ride share stops for bicycle parking infrastructure. The programs defined under Policy T 5.1 explore the possibilities of amending the City’s Municipal Code to update parking standards based on location conditions and users’ needs. One program is geared towards reducing parking requirements for multi- family housing to encourage the utilization of alternative transportation modes, provided it does not adversely affect the neighborhood. Another program similarly seeks to lower parking requirements for retail and restaurant establishments to stimulate the establishment of new businesses and promote the adoption of alternative transportation modes. The programs included in Policy T-5.12 involve performing bicycle parking assessments and installing secure e-bike lockers in transit stations and parking garages. In addition, the City seeks to collaborate with employers, businesses, schools, and community service providers to explore options for increasing bicycle parking availability. Zoning Code Parking requirements in the City of Palo Alto are defined in the City’s Municipal Code and Zoning Ordinance. The standards and minimums are captured in Section 18.52.040. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 63  Packet Pg. 70 of 389  61 Exisitng Conditions Report Transportation Parking minimums are designated and regulated based on all the land uses present in Palo Alto. See an example of land uses provided in Table 2. Uses Vehicle Spaces Required Single Family Residential (Primary Unit) In the OS district In all other districts Two Family Residential R-2 and RMD districts R-1 and RE districts (Section 18.42.180) 4 spaces, at least 1 covered 2 spaces, at least 1 covered 1.5 per unit, 1 space per unit covered 1 per unit Multi-Family Residential 1 per micro-unit 1 per studio unit 1 per 1-bedroom unit 2 per 2-bedroom or larger unit, 1 space per unit must be covered General Business Services Enclosed Open Lot 1 per 250 sq. ft. 1 per 500 st. ft. of sales Commercial Recreation 1 space per each 4-person capacity Table 2 - Minimum Off-Street Parking Requirements Airport Palo Alto is centrally located between two major regional international airports, San Francisco International Airport (SFO) and San Jose Mineta International Airport (SJC). While the operation of SFO and SJC does not prompt development considerations for the redevelopment of the San Antonio Road Corridor, the region’s two local airports, Moffett Field and Palo Alto Airport (PAO), do. The following sections discuss relevant information regarding the two regional airports in relation to the redesign of the concept plan. Palo Alto Airport Depicted in Figure 14, the Palo Alto Airport (PAO) is located at the northwestern edge of Santa Clara County and on the western shore of the southern portion of San Francisco Bay. The Airport occupies 102 acres of land and serves as a reliever for the three major Bay Area airports. Although the airport was previously operated by the County of Santa Clara, it is now under the management of the City of Palo Alto, Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 64  Packet Pg. 71 of 389  62 Exisitng Conditions Report Transportation transferring PAO’s key challenges such as noise impacts and runway conditions to city staff. Development Considerations According to the Palo Alto Airport Comprehensive Land Use Plan (CLUP), Runway 31 is the only flight path that crosses through the San Antonio Road Corridor project. It only flies over the northern corner of the site. Despite this, none of PAO’s 2022 Airport Noise contours reach the San Antonio Road Corridor. PAO’s CLUP also discusses building height limitations for surrounding areas. These height limitations do not impact any development of the San Antonio Road Corridor. Lastly, the CLUP identifies six airport safety zones that impose density and use limitations within the zones to minimize the number of people exposed to potential aircraft accidents in the vicinity of the airport. None of the safety zones reach the San Antonio Road Corridor. Moffett Field Seen in Figure 15, Moffett Federal Airfield is a U.S. Government-owned airport situated in the north-central area of Santa Clara County, near San Francisco Bay, neighboring Mountain View and Sunnyvale. The airport covers 952 acres and is operated by NASA Ames Research Center. It was a former U.S. Naval Air Station and still has a military presence, with the California Air National Guard stationed there. The airport hosts U.S. Coast Guard and NASA test flights, along with government personnel and air cargo operations. Civilian activities at the airport are limited and expected to remain so. Figure 15 - Location map of the Moffett Federal Airfield. Figure 14 - Location map of the Palo Alto Airport. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 65  Packet Pg. 72 of 389  63 Exisitng Conditions Report Transportation Development Considerations The Moffett Federal Airfield CLUP reveals that the airfield’s flight tracks do fly over the northern corner of the project site. However, its noise contours do not reach the project boundaries. The project site is also not included in any of Moffett Airfield’s safety zones. The only design consideration imposed by the operation of this airfield is a height restriction of 382 feet above sea level in the northern corner of the project site and west of San Antonio Road. Key Terms/Abbreviations • Transportation Demand Management (TDM): strategies that improve transportation system efficiency and reduce congestion by shifting trips from single-occupant vehicles to collective forms of transport, including mass transit, carpools, and private shuttles. • Level of Service (LOS): Qualitative analysis of the flow of traffic. • Vehicle Miles Traveled (VMT): Measure of the amount of travel for vehicles for an area over a given period of time, typically one-year. It is calculated as the sum of the number of miles traveled by each vehicle. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 66  Packet Pg. 73 of 389  64 Exisitng Conditions Report Transportation Sources Bike to work (& wherever) days. City of Palo Alto, CA. (2023, May 16). https://www. cityofpaloalto.org/Events-Directory/Office-of-Transportation/Bike-to-Work-Day Caltrain. (n.d.). Bikes on the train. Caltrain. https://www.caltrain.com/rider- information/bicycles/bikes-train The City of Palo Alto. (2012). Bicycle and Pedestrian Transportation Plan. The City of Palo Alto. (2017). 2017 Traffic Safety and Operations Report. The City of Palo Alto. (2023). Office of Transportation Metropolitan Transportation Commission, (2016). Bay Area Shuttle Census Santa Clara Valley Transit Authority, (2022). Open Data Ridership Caltrain, (2019). Ridership by Station Santa Clara Valley Transit Authority, (2023). SAN ANTONIO ROAD CORRIDOR TRANSIT ASSESSMENT Stanford. (2022, June 10). How to take your bike on Caltrain. Stanford Research Park. https://stanfordresearchpark.com/articles/how-to-take-your-bike-on-caltrain Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 67  Packet Pg. 74 of 389  Environment Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 68  Packet Pg. 75 of 389  66 Existing Conditions Report | Environment Introduction The environment chapter of the Existing Conditions Report addresses topics related to water and water resources, biological resources, natural hazards, climate, and noise. Although most of the project area is urban landscape, there are many environmental considerations, such as climate change and hazardous materials, that must be addressed. An evaluation of the environment will allow for more informed decisions on future development and the potential mitigation measures needed. Major Findings • Water: The City of Palo Alto has sufficient and high-quality water resources to support a growing population. They have developed plans and policies to implement water conservation efforts and conserve their ample water supply, even in times of emergency or drought. • Urban Forest: The City of Palo Alto has an Urban Forest Management Plan which includes all private and public trees, plants, and associated organisms in the Palo Alto ecosystems. There are several urban tree canopy target areas where the city has identified potential locations to plant more trees. • Pollinator pathways: Palo Alto has multiple pollinator pathways, roads with native plant habitat and food for pollinators, that serve as regional habitat connections between city parks, the foothills preserve, the Palo Alto Baylands and associated ecosystems outside of the city. San Antonio Road is not currently a pollinator pathway despite its proximity to the Bayland Preserve. • Hazardous materials: The San Antonio Road Corridor is one of two areas in Palo Alto with a relatively high density of hazardous material sites. Most are considered cleaned up, but there are three sites with land use restrictions, and five permitted underground storage tank sites. Hazardous materials are at risk of mobilization with sea level rise and associated groundwater table rise. • Noise: Highway 101 is the major noise source for the San Antonio Road Corridor. The 60 dba noise contour extends as far south as Middlefield Road. This has implications for noise sensitive land uses, such as residential and hotels as their acceptable noise level exposure is less than 60 db. • Climate Change: The San Antonio Road Corridor is highly prone to sea level rise. To mitigate risks, Palo Alto aims to develop a multi-year Sea Level Rise Adaptation Plan and assess vulnerabilities to protect vital infrastructure and property, given the sea level’s accelerating rise and the outdated flood protection systems. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 69  Packet Pg. 76 of 389  67 Existing Conditions Report | Environment Hydrology and Water Resources This section outlines existing conditions regarding water resources and water availability for the City of Palo Alto. Regulatory Setting Palo Alto Urban Water Management Plan The City’s Urban Water Management Plan outlines the water demand, water supply sources, reliability of sources, water conservation efforts, and water shortage plans. The goal of the plan is to ensure the city’s water resources are being properly allocated and accounted for past and future use. Baylands Comprehensive Conservation Plan The Baylands Comprehensive Conservation Plan addresses the future management of the Baylands Nature Preserve. It addresses topics concerning conservation, recreation and visitor use with the purpose of ensuring the protection of biological resources and natural resources. The plan limits development in the Baylands. One Water Plan As part of the Sustainability and Climate Action Plan, the City has begun drafting the One Water Plan to address water conservation, alternative water sources, uncertainties, and future risks. The Plan will also develop criteria for assessing water supply and conservation efforts. The Plan is set to be completed in early 2024. Water bodies Palo Alto is surrounded by land on most sides, but its northern boundary is adjacent to the San Francisco Bay. The land and marshes that lay north of Highway 101 and south of the San Francisco Bay are environmentally protected lands known as the Baylands Nature Preserve. The city is also host to six creeks: San Franciscquito Creek, Matadero Creek, Adobe Creek, Barron Creek, Arastradero Creek, and Stevens Creek. In the more urbanized areas of the city, the creeks have been heavily engineered to serve primarily as flood control channels. The San Francisco Bay and Adobe Creek are the primary water bodies that interact with the project site. As can be seen in Figure 1, Adobe Creek is the closest water body to the project site. Adobe Creek used to run through the San Antonio Corridor project site, but the channelization has moved the creek outside of the project boundaries. The northern most area of the site touches the Saline Emergent wetland adjacent to the San Francisco Bay. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 70  Packet Pg. 77 of 389  68 Existing Conditions Report | Environment Fi g u r e 1 - M a p o f s u r r o u n d i n g w a t e r b o d i e s Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 71  Packet Pg. 78 of 389  69 Existing Conditions Report | Environment Water Supply Palo Alto receives 100 percent of its potable water from the San Francisco Regional Water System (SFRWS), which is managed by the San Francisco Public Utilities Commission (SFPUC), through the Regional Water System. The water distributed by the SFPUC mostly comes from the Sierra Nevada snowmelt distributed by the Hetch Hetchy water distribution system. 15 percent of treated water used by SFPUC comes from its local watersheds in Alameda and San Mateo County. 85 percent of this water comes from the Tuolumne River Watershed alone and the rest from Alameda Creek watershed and San Mateo County Watershed. The Regional Water Quality Control Plant (RWQCP) is operated by the City and produces recycled water for irrigation of golf courses, parks, and minor appliances. These two water supplies, SFPUC and recycled water, made up 100 percent of the city’s water supply in 2020. As can be seen in Table 1, the city’s water supply is estimated to increase over the years due to SFPUC supply. Water Quality According to the 2022 Water Quality Report, the City’s water meets all the federal and state drinking water quality standards. SFPUC treats all surface water before it is delivered to cities. It is disinfected using ultraviolet light and chlorine, pH adjustment, fluoridation, and chloramination. SFPUC regularly conducts testing to ensure the water meets federal and state drinking water standards. The City has certified there is no lead in the water system infrastructure and water sample tests have confirmed there is no detectable lead in the water. Table 1 - Current and Planned Water Supply (UWMP) Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 72  Packet Pg. 79 of 389  70 Existing Conditions Report | Environment Groundwater The Urban Water Management Plan identifies the groundwater availability in Santa Clara County and the City of Palo Alto. The county has a steady level of groundwater available as potable water demand has been reduced. The city has five wells that were continuously used from the mid 1950s to 1962 and operated again in 1988 to provide supplemental water supply. The city has not used its groundwater since 1991, when it was operational for about a month and a half during a severe cutback. The water quality is less than desirable compared to the SFPUC’s water supply as it has a high amount of dissolved solids and hardness. As part of the Emergency Water Supply and Storage Project, the wells were rehabilitated, and three new wells and a 2.5-million-gallon storage reservoir and pump station were constructed a decade ago. The expansion allowed for up to 11,000 gpm (gallons per minute) of well capacity and three million gallons of storage. This construction was to ensure sufficient water during an emergency water shortage or drought conditions. The San Antonio Road Corridor is not in the vicinity of the groundwater wells’ location. The wells are located in the northern western part of the city. Wastewater The Regional Water Quality Control Plant serves as Palo Alto’s and the surrounding cities’ wastewater treatment plant. Ten percent of the wastewater flow is from industries, 30 percent from commercial businesses and institutions, and 60 percent from residences. The plant has a capacity of 39 MGD (million gallons per day) during average dry weather flow and 80 MGD for peak wet weather flow. The current average flow is 17.24 MGD. The maximum design daily flow is 90,000 acre-foot per year (AF/year) and the average design daily flow sits below half of the capacity at 44,000 AF/year. The plant has sufficient capacity for dry and wet weather flows as well as for future projections. The wastewater that is not treated and recycled is discharged into the San Francisco Bay. Watersheds The City of Palo has five watersheds within their city boundaries: San Francisquito Creek Watershed, San Fransisco Bay Watershed, Matadero Creek Watershed, Barron Creek Watershed, and Adobe Creek Watershed (see Figure 2). The San Antonio Road Corridor project area lies in the Adobe Creek Watershed area and the Permanente Creek Watershed which lies mostly in the City of Mountain View. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 73  Packet Pg. 80 of 389  71 Existing Conditions Report | Environment Fi g u r e 2 - M a p o f w a t e r s h e d s i n P a l o A l t o ( Co m p r e h e n s i v e P l a n ) Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 74  Packet Pg. 81 of 389  72 Existing Conditions Report | Environment The Adobe Creek watershed covers approximately eleven square miles of Santa Clara County, most of which covers mountainous terrain. It consists of seven tributary creeks, 19 miles of natural creek bed, and 2.3 miles of engineered channels. The drainage area above the Adobe Fork is undeveloped open space, but most of the area is developed urban land. 46.5 percent of the area is residential, forest 36.3 percent, 11.8 percent is industrial/commercial across multiple cities, including Palo Alto, Los Altos, Los Altos Hills, and Mountain View. The watershed has no designated uses by the San Francisco Bay Water Board, but it is an important natural resource for warm freshwater habitat and water contact recreation. The watershed has no water quality impairments. Adobe Creek meets Barron Creek west of Highway 101 and drains into the Palo Alto Flood Basin and South San Francisco Bay. The Barron Creek watershed covers an area of 15.5 square miles, three of which are areas of urban development. Barron Creek is five miles long, flowing through the Town of Los Altos Hills and parts of residential, commercial, and industrial areas of the City of Palo Alto. The creek joins Adobe Creek and brains into the Lower South San Francisco Bay. About 50 percent of the Creek has been channelized for flood control purposes. The watershed is essential for fish migration and cold freshwater habitat. Barron Creek is located just south of the project boundary area. Biological Resources Regulatory setting Baylands Comprehensive Conservation Plan See Hydrology and Water Resources Palo Alto Comprehensive Plan The Palo Alto 2030 Comprehensive Plan Natural Environment element contains goals, policies, and programs related to protecting, preserving, and prioritizing the natural environment within Palo Alto. Key natural environment goals include protection and conservation of open space, urban forest and understory, creeks and riparian areas. Goal N-1: Protect, conserve and enhance Palo Alto’s citywide system of open space, including connected and accessible natural and urban habitats, ecosystems and natural resources, providing a source of public health, natural beauty and enjoyment for Palo Alto residents. Goal N-2: A thriving urban forest that provides public health, ecological, economic, and aesthetic benefits for Palo Alto. Goal N-3: Conservation of both natural and channelized creeks and riparian areas as open space amenities, natural habitat areas and elements of community design. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 75  Packet Pg. 82 of 389  73 Existing Conditions Report | Environment Urban Forest Master Plan The Palo Alto Urban Forest Master Plan was adopted in 2015 and updated in 2019 containing goals, policies, and programs related to increasing the urban tree canopy. The plan focuses on public and private trees and the overlapping goals of city staff and property owners regarding the urban forest. Land Cover The project area is defined as an Urban Forest as its vegetation and habitat type in the Natural Environment Element of the Palo Alto Comprehensive Plan. More than one- third of Palo Alto is natural open spaces which include the Palo Alto Baylands and the Foothills Nature Preserve. The Palo Alto Baylands are adjacent to the northern end of the project boundary and are made up of salt marsh, non-native grassland, riparian, and lagoon habitats. A series of pollinator pathways exist using roads, parks, community gardens, and creeks to connect the two nature preserves. Pollinator pathways are corridors where habitat and food sources have been planted between the sidewalk and road for bees, butterflies, and birds. One of the identified pollinator pathways cuts through the project site along Middlefield Road (see Figure 3). Wildlife and Plants The Palo Alto Baylands is a habitat for a diverse selection of plants and animals. The Palo Alto Comprehensive Plan notes special status wildlife and plant species in the Bayland Preserve which are the western burrowing owl, California seablite, and northern coastal salt marsh. Additional special status species listed by the California Natural Diversity Database include the Ridgway’s rail (bird) and salt marsh harvest mouse which are both listed as federally endangered. California Department of Fish and Wildlife (CDFW) lists the salt marsh common yellowthroat as a special status species. The U.S. Fish and Wildlife Service has determined that the western snowy plover, which is a federally threatened species, has a critical habitat near the Palo Alto Baylands. There are a variety of threats to special status wildlife and plant species. The U.S. Department of Agriculture predator control services has identified feral cats and other target species that are a threat to Ridgway’s rail and the burrowing owl, both species located in the Baylands Preserve. The target species include feral and free-ranging cats and dogs, raccoons, striped skunks, and red foxes. There are additional feral cat management and control recommendations in the Palo Alto Baylands Byxbee Park Master Plan to protect the burrowing owl and their habitat. Feral cats will be trapped and taken to Palo Alto Animal Services and feeding stations will be removed as they are identified. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 76  Packet Pg. 83 of 389  74 Existing Conditions Report | Environment Figure 3 - Natural systems map Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 77  Packet Pg. 84 of 389  75 Existing Conditions Report | Environment Urban Forest The Urban Forest Master Plan defines the urban forest as the trees, plants, and related organisms in the shared ecosystem in Palo Alto. The Urban Forest planning boundary includes all of Palo Alto between Highways 101 and 280 and the Municipal Golf Course. The airport, Baylands, Arastradero Preserve, and Foothills Park are excluded from the plan. The plan seeks to address the challenge of redeveloping more intense land uses that lead to the loss of planting sites. The plan aims to create policies and procedures that make development projects opportunities to increase the urban tree canopy. A portion of the project site from Middlefield Road to Highway 101 is included in one of the Comprehensive Plan Urban Canopy Target Areas (see Figure 3). Urban tree canopy has many benefits including building energy use reduction, carbon dioxide sequestration, air quality, stormwater runoff reductions, and aesthetics and property value. Trees also provide critical habitat for pollinators, seed distributors, and other species critical to surrounding ecosystems. The urban forest is more successful with companion vegetation that contributes to tree health and ecosystem function. The protected tree species in Palo Alto are the Big Leaf Maple, California Incense Cedar, Coast Live Oak, Blue Oak, California Black Oak, Valley Oak, and Coast Redwood. The trees must be 11.5 inches or more in diameter at breast height (DBH) with the exception of the Coast Redwood which must be 18 inches or more DBH. Additionally, all public trees and all mature trees greater than fifteen inches DBH are protected excluding invasive species and high water use trees. Designated trees can be protected during development project review and approval, due to identification for carbon sequestration or environmental mitigation purposes, or as a replacement mitigation tree. Heritage trees are individual trees protected of various sizes, species, or historical significance determined by the city council or nominated by property owners. Title 8 of the Palo Alto Municipal Code considers trees under or near power lines regulated trees and may be protected regardless of ownership. Palo Alto has a Line Clearing Program to maintain vegetation clearance from utilities per the State of California Public Utilities Commission (CPUC) rules. Hazards Regulatory Settings Federal Emergency Management Agency (FEMA) Minimum federal standards for floodplain management in the United States are maintained by FEMA. FEMA managed floodplains are lowland and flat areas adjacent to coastal and inland waters that are subject to flooding in any given year. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 78  Packet Pg. 85 of 389  76 Existing Conditions Report | Environment Seismic Hazards Mapping Act The Seismic Hazard Mapping Act is a California state regulation that requires seismic hazard zones to be mapped by the State Geologist. Cities are required to regulate development projects within the zones mapped by the state. Alquist-Priolo Earthquake Fault Zoning Act The Alquist-Priolo Earthquake Fault Zoning Act is a California state regulation the restricts development on or close to active faults. Human occupied structures are prohibited from being built on active fault traces. California Building Code The California Code of Regulations (CCR), Title 24, Part 2, is the California Building Code. The California Buildings Standards Commission is responsible for the building standards in the California Building Code including earthquake conditions. Code of Federal Regulations (CFR) US Environmental Protection Agency (EPA) hazardous waste regulations are in Title 40, Code of Federal Regulations, (40 CFR), Parts 260-279. These regulations are implemented by the Resource Conservation and Recovery Act (RCRA). California Code of Regulations (CCR) The California hazardous waste laws are found in the California Code of Regulations (CCR), division 4.5, title 22. These laws are in the California Health and Safety Code and the individual generating waste is responsible for identifying whether it meets the CCR criteria for hazardous waste. City of Palo Alto Comprehensive Plan The Palo Alto 2030 Comprehensive Plan safety element contains goals, policies, and programs related to protecting communities, ecosystems, and property from natural and human caused hazards. The safety element includes mitigation, monitoring, public education, and response for hazards that impact the community. Seismic and Geologic Hazards The San Francisco Bay Area has many active fault zones. Palo Alto is near the San Andreas Fault Zone and the San Gregorio Fault Zone in the Santa Cruz Mountains. Across the San Francisco Bay is the Calaveras Fault Zone and Hayward Fault Zone. All these fault zones could potentially impact the City of Palo Alto and the project site. The Santa Clara County Operational Area Hazard Mitigation Plan models 100-year and 500-year probabilistic earthquake scenario peak ground acceleration. The project site ranges from strong (VI) to very strong (VII) on the modified Mercalli Scale for potential shaking. Earthquakes are listed in the top three natural hazards prioritized by the city Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 79  Packet Pg. 86 of 389  77 Existing Conditions Report | Environment in the Threat and Hazards Identification and Risk Assessment. The risk associated with earthquakes is primarily fault rupture and seismic shaking and secondarily liquefaction and earthquake induced landslides. The project area is at risk of building damage due to earthquakes. Earthquake induced landslides are not a risk to the project area as it is in a low-lying area of Palo Alto. However, the Palo Alto Foothills are the area that is susceptible to landslides in the event of an earthquake. Liquefaction affects development due to the soil becoming water-logged and losing strength after seismic events. The rising groundwater table due to sea level rise may exacerbate liquefaction in the project area. Liquefaction is a moderate risk throughout most of the project site and a very high-risk risk east of Highway 101 (see Figure 4). Wildfire Wildfire risk is becoming more widespread in California due to population increases, drought conditions, and fire suppression efforts. The Wildland Urban Interface (WUI) is the location where development meets highly vegetated areas and is prone to wildfire. Fire potential is influenced by fuel, topography, weather, and wind. The increased slope increases the intensity and spread rate of wildfires along with fuel sources and arrangement. Fuel sources include vegetation, man-made structures, and combustibles. The potential of fuel igniting and fire spreading is exacerbated by high temperature, low relative humidity, and high wind. There is no recorded history of wildfires in the City of Palo Alto. Historical fires in the area include Portola Valley LEIB in 1962 in San Mateo County and Stevens in 2007 in Santa Clara County. The risk area is the Santa Cruz Mountain Range to the west of the city. The Palo Alto Foothills are adjacent to the Santa Cruz Mountains which are in a high and very high fire severity zone. Much of this high-risk area is the Palo Alto Foothills Preserve and has minimal urban development. Most of the urban area of Palo Alto is in a low wildfire severity zone including the project site. Wildfire resources are available to the city through the Palo Alto Fire Department and Santa Clara County’s Office of Emergency Management for wildfire updates, evacuation and shelter information and resources, and air quality monitoring. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 80  Packet Pg. 87 of 389  78 Existing Conditions Report | Environment Figure 4 - Map of liquefaction risk Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 81  Packet Pg. 88 of 389  79 Existing Conditions Report | Environment Figure 5 - 100-year flood zone map Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 82  Packet Pg. 89 of 389  80 Existing Conditions Report | Environment Floods The San Antonio Road Corridor project area is next to the Palo Alto Baylands and Adobe Creek. During periods of heavy rainfall, areas near creaks and the Bay may flood. Properties in flood zones are at risk of damage in the event of flooding. The Federal Emergency Management Agency (FEMA) flood maps define the flood risk. Impervious surfaces in urban areas increase flood potential within the site and downstream. The project site is identified within the 100-year flood zone as Zone AE (base flood elevations determined) north of East Charleston Road (see Figure 5). Following a significant flood event in December 1955, the City made several changes in partnership with Santa Clara Valley Water District (Valley Water), to manage flood risk and prevent property damage in the low-lying areas of Palo Alto near Adobe Creek and the Baylands. In 1956, the City constructed 2.3 miles of engineered trapezoidal concrete drainage channel, rerouting Adobe Creek slightly north, from El Camino Real to US 101. Adobe Creek combines with Barron Creek and empties into the Palo Alto Flood Basin (PAFB) north of US 101. The flood basin was created in 1956 with tide gate construction following in 1957 creating control over the water level in the Baylands and preventing tidal flooding in extreme high tide events. The water level in the 618-acre flood basin is maintained at approximately two feet below sea level to allow room to absorb flood water. The tide gate reduces the saltwater flow to the PAFB. Valley Water is working on the Palo Alto Flood Basin Tide Gate Structure Replacement Project to address issues with the tide gate’s service life, seismic stability, future sea level rise, and increased flood protection due to changing climate. Hazardous Materials Hazardous materials include liquids, solids, and contained gases that are the by- products of manufacturing processes, discarded household materials, and discarded commercial products. Areas within one mile of railroads or major highways are considered at risk from hazardous material release. Hazardous waste is subject to either the Resource Conservation and Recovery Act in Title 40, Code of Federal Regulations (40 CFR) or California Health and Safety Code (HSC) and California Code of Regulations, Title 22 section 66261.3 (22 CCR). The industrial area by Highway 101 in South Palo Alto is part of the project site and is considered one of two major areas of hazardous materials in the City of Palo Alto. Commercial and Industrial land uses on and around the site have hazardous materials organized in the Comprehensive Plan by California State Water Resources Control Board (SWRCB) geotracker sites, Department of Toxic Substances (DTSC) cleanup program sites, and hazardous waste generators. From the SWRCB geotracker, there are 18 Leaking Underground Storage Tank (LUST) locations within the project area that all Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 83  Packet Pg. 90 of 389  81 Existing Conditions Report | Environment have a “completed-case closed” status. The project area has an additional 14 SWRCB cleanup program sites with varying statuses, five of which are “completed-case closed,” three “open-remediation,” three “open-inactive,” two “open-verification monitoring,” and one “open-site assessment.” There are five DTSC cleanup sites. and five locations with Permitted Underground Storage Tanks Systems (UST) with 17 total open USTs storing petroleum or other hazardous substances. Historically, there was a landfill at Shoreline Park in Mountain View located north of the project area along the San Francisco Bay. The site is currently a 750-acre wildlife refuge and recreation area. The landfill is no longer in use but is an open Tittle 27 Municipal Solid Waste Landfill hazardous material site. It is still monitored and maintained by the city to respond to the landfill gas and leachate that decomposing materials produce. The City of Mountain View collects the gas through underground pipes and incinerates it to reduce emissions. The leachate is collected and pumped into the sanitary sewer. Sea Level Rise is causing the groundwater table in Palo Alto to rise. When the groundwater table is within six feet of the surface it is considered a high shallow groundwater table and is at high risk for mobilization of contaminates. With 36 inches of projected sea level rise, the Palo Alto landfill and two other hazardous material sites are at high risk of mobilization of contaminates. There are additional hazardous material sites, including six within the project boundary that become high risk sites with the high range, end of the century, 84-inch sea level rise projection. Emergency and Evacuation The city of Palo Alto is vulnerable to many natural and human hazards including earthquakes, fires, floods, and hazardous waste. The Palo Alto Emergency Operations plan outlines the preparedness, response, recovery, and mitigation efforts that the city undertakes in the event of hazards. The Office of Emergency Services (OES) is defined as a public safety department and the Emergency Services Chief is responsible for directing response and recovery activities. Palo Alto is a part of the Santa Clara County Multi-Jurisdictional Hazard Mitigation Plan (MJHMP). This plan aims to build partnerships between communities in Santa Clara County to create solutions to shared hazard risks. Hazard mitigation plans are critical in reducing disaster damage and costs by identifying, assessing, and reducing the risks of hazards. Many natural hazards, including flooding, earthquakes, and wildfires, will affect areas larger than Palo Alto, so multi-jurisdictional planning coordinates efforts to better address common hazards. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 84  Packet Pg. 91 of 389  82 Existing Conditions Report | Environment The Americans with Disabilities Act (ADA) Title II requires compliance in emergency management and disaster programs. There are specifications for sheltering, public notifications, and transportation. The Stafford Disaster Relief and Emergency Assistance Act requires additional planning to ensure equal access and coverage for people with disabilities. Palo Alto meets the needs of people with disabilities through the following efforts: notification and warning procedures, evacuation, transportation and sheltering considerations, accommodations for service animals, and accessibility to information. Additionally, Palo Alto serves individuals with “access and functional needs” that may not be directly related to a disability. These people may need additional support with maintaining independence, effective communication, transportation, supervision, or medical care. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 85  Packet Pg. 92 of 389  83 Existing Conditions Report | Environment Figure 8 - Map of hazardous material sites with land use restrictions Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 86  Packet Pg. 93 of 389  84 Existing Conditions Report | Environment Climate This section will cover the existing climate conditions of the City of Palo Alto and will discuss the various methods in place to address the rising concerns of climate change. Regulatory Settings 2022 Sustainability and Climate Action Plan The 2022 Sustainability and Climate Action Plan along with the Palo Alto 2020 Comprehensive Plan, provide key statewide legislation aimed at reducing greenhouse gas (GHG) emissions and addressing climate impacts. The State of California has been a leader in developing and implementing policies and regulations to directly address sector specific issues. Palo Alto 2030 Comprehensive Plan The Palo Alto 2030 Comprehensive Plan outlines goals, policies, and programs in place that address environmental risks such as air pollution and climate change. California Global Solutions Act Senate Bill 32 (SB 32), California Global Solutions Act of 2006, 2016 Senate Bill (SB) 32 expands upon the Global Warming Solutions Act of 2006, requiring the California Air Resources Board (CARB) to ensure that statewide GHG emissions are reduced to 40% below 1990 levels by 2030 and 80% below 1990 levels by 2050. Clean Energy and Pollution Reduction Act In October of 2015, Senate Bill 350 (SB 350) was signed into law, establishing new clean energy, clean air and greenhouse gas reduction goals for 2030 and beyond. Bay Area Air Quality Management District CEQA Guidelines The Bay Area Air Quality Management District (BAAQMD) encourages local governments to adopt a GHG Reduction Strategy that is consistent with AB 32 goals. The GHG Reduction Strategy may streamline environmental review of community development projects. Climate Change Climate change is important to plan for because of its present and long-lasting impacts on cities and communities. One reason for this is the increase of Greenhouse Gases (GHGs) in the atmosphere, causing the planet to warm. In recent years, GHG emissions have been on the rise due to an increase in industry and transportation-related emissions. To address these issues, cities can create goals and policies to reduce and Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 87  Packet Pg. 94 of 389  85 Existing Conditions Report | Environment mitigate human-made emissions. Palo Alto’s 2022 Sustainability and Climate Action Plan identifies current climate change impacts that are of concern while outlining the manner in which they plan to address them. Some of the effects already seen are sea level rise, the increase of wildfires, changes in weather, and drastic water shortages. In addition, there are community and financial impacts. Several studies conclude on the disproportionate impact on vulnerable communities. When it comes to environmental impacts, they tend to experience the changes first and more intensely. Communities with socioeconomic inequities struggle more to prepare for and recover from environmental disasters. Similarly, with climate-related disasters becoming more frequent, costs for disaster response and relief will increase substantially. These disasters are prone to affect buildings, water infrastructure, transportation infrastructure adding to the rising costs. To prepare for the impacts of climate change, Palo Alto allocates resources and funds toward climate-protecting strategies as stated in the Climate Action Plan. The goal is not to react to climate-lead effects, but instead, to create a more resilient future that has the ability to adapt to projected climate changes. Sea Level Rise One significant aspect of climate adaptation in Palo Alto is addressing the challenge of sea level rise. The State of California projects that rising sea levels resulting from greenhouse gas emissions and climate change pose substantial economic, environmental, and social risks to communities along the San Francisco Bay Shoreline, including Palo Alto. Many essential city services and infrastructure in Palo Alto are situated in areas that are projected to be inundated if adaptation measures are not put in place. Part of the San Antonio Road Corridor is projected to be vulnerable to a 24- inch to a 55-inch rise in sea level, as seen in Figure 9. A key goal outlined in the 2022 Sustainability and Climate Action Plan is the development and adoption of a multi-year Sea Level Rise Adaptation Plan, incorporating a Sea Level Rise Vulnerability Assessment. This assessment identifies risks to the Palo Alto Baylands, C]city infrastructure, and properties from high tide, 100-year coastal storm events, and rising shallow groundwater. The Sea Level Rise Adaptation Plan works to preserve and expand habitat and protect city and community assets and private property. The Sea Level Rise Adaption Plan Draft states the sea level in the San Francisco Bay area has increased by 8 inches since the 1850s and this number is currently accelerating. The San Francisquito Creek Downstream Project completed in 2019, widened sections of the creek channel and built new larger engineered levees along the creek to accommodate Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 88  Packet Pg. 95 of 389  86 Existing Conditions Report | Environment a 100-year storm tide and three feet of sea level rise. Palo Alto’s existing coastal flood protection relies on a levee network that extends along the shoreline from San Francisquito Creek in the north to approximately San Antonio Road in Mountain View to the south. The city’s creeks (San Francisquito, Barron, Adobe, and Matadero Creek) are altered and include channelized sections and riverine levees to reduce flood risk to developed areas. However, they no longer meet FEMA accreditation standards for flood protection from a 100-year coastal or riverine flood event. Due to this, several portions of the city, including the project site, are at risk of flooding. Greenhouse Gas (GHG) Emissions The City of Palo Alto’s Sustainability and Climate Action Plan has an established goal to achieve carbon neutrality by 2030. This shall be achieved by reducing greenhouse gas emissions (GHG). Overall, addressing GHG emissions is crucial for cities, given that they account for 75 percent of global energy-related carbon dioxide emissions, with transportation and buildings being major contributors. For cities to start mitigating climate change, they must identify and quantify the sources of emissions, typically achieved through a standardized GHG inventory. The 2021 GHG inventory for Palo Alto, conducted by AECOM, adheres to the Global Protocol for Community-Scale Greenhouse Gas Emissions (GPC) basic protocol for a generation based GHG inventory. Generation-based GHG inventory assesses a community’s emissions based on its energy consumption, encompassing direct energy use, consumption via the electrical grid, and emissions from waste treatment/ decomposition. It is the industry-accepted methodology for quantifying community GHG emissions, categorized by emission source. In 2021, Palo Alto emitted approximately 359,312 metric tons of carbon dioxide equivalent (CO2e) across various sectors. This represents a 53.9 percent reduction in total community emissions compared to the 1990 baseline year, despite a 19.5 percent increase in population. Emissions per resident decreased from 14 metric tons (MT) CO2e in 1990 to 5.4 MT CO2e in 2021. The California Air Resources Board recommends a target of six MT CO2e per capita by 2030 for local governments. The reduction in emissions resulted from various factors, visualized in Figure 10. The most significant contributions come from achieving carbon neutrality in the city’s electricity supply (44.2 percent), declines in transportation emissions (28.6 percent), and reductions in natural gas (methane) consumption (13.9 percent). In comparison to 2020, there was a 6.7 percent decrease in total community emissions. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 89  Packet Pg. 96 of 389  87 Existing Conditions Report | Environment Figure 9 - Sea level rise map Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 90  Packet Pg. 97 of 389  88 Existing Conditions Report | Environment Figure 10 - 1990 vs 2021 emissions by sector Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 91  Packet Pg. 98 of 389  89 Existing Conditions Report | Environment Pollutants In evaluating the impact of air pollution on the planning area, it is important to consider the types of pollutants present and their respective severities. Two significant pollutants outlined in IQAir, are particulate matter 10 (PM10) and particulate matter (PM2.5). PM2.5 refers to fine particulate matter. These particles are often produced from various sources, including combustion processes, industrial emissions, and natural sources such as dust and pollen. PM2.5 can pose health risks by penetrating the respiratory system, potentially causing respiratory and cardiovascular problems. PM10 denotes larger particulate matter and sources include construction activities, industrial processes, and natural factors such as windblown dust and pollen. The inhalation of PM10 particles impacts human health by causing respiratory issues. Sources of these pollutants are diverse and are categorized as primary or secondary. Among the primary sources, automobile emissions play a significant role, contributing to the presence of PM10 and PM2.5 in the air. In terms of the project area, this is an increased concern due to its proximity to Highway 101. This increases the risk of health effects associated with exposure to these pollutants. Prolonged inhalation of these fine particulates can lead to a range of health issues, including coughing, exacerbation of pre-existing conditions like asthma, and an increased risk of lung-related diseases. Thus, understanding the sources and severity of these pollutants is vital for proactive planning and measures aimed at safeguarding the health and well-being of Palo Alto residents. The Bay Area faces challenges related to air quality and pollution, but Palo Alto’s air quality is more favorable compared to the surrounding cities. According to AirIQ, Palo Alto averaged an annual PM2.5 concentration of 6.5 micrograms per cubic meter (μg/m3) in 2019 while neighboring cities such as Fremont reported 7.5 μg/m3 and San Fransisco reported 7.1 μg/m3. However, this does not diminish the importance of moving towards efforts to minimize the impact of air pollutants in the community. There are ongoing initiatives and efforts in place to improve air quality, such as reducing automobile emissions and addressing other primary sources of air polluation. Temperature According to the 2022 Sustainability and Climate Action Plan, the Palo Alto region has experienced a 1.7-degree Fahrenheit temperature increase from 1950 to 2005. These rising temperatures are expected to lead to more prolonged and severe droughts in California, posing significant challenges for government operations, water resources, ecosystems, agriculture, and recreational activities. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 92  Packet Pg. 99 of 389  90 Existing Conditions Report | Environment In 2022, the IPCC (Intergovernmental Panel on Climate Change) released its Sixth Assessment Report, emphasizing the need to limit global temperature rise to 1.5 degrees Celsius (2.7 degrees Fahrenheit) to prevent significant climate-related impacts. The Paris Agreement shares this goal, aiming to stay below a 2 degrees Celsius (3.6 degrees Fahrenheit) temperature increase above pre-industrial levels. Global temperatures have already increased by 1.1 degrees Celsius. This means the future impacts such as sea-level rise, higher temperatures, and increased fire risk are prone to occur. Therefore, Palo Alto recognizes the importance of building resilience to these changes while actively working to mitigate climate effects. Air Quality Current air quality levels in Palo Alto are dependent on a combination of factors, including daily emissions, weather, and geography. The San Antonio Road Corridor is an area of concern for air quality due to it being a large industrial area. Large industries tend to emit more pollutants, leading to an increase in hazardous air quality conditions. In addition, this corridor is a strong arterial road for heavy traffic such as trucks. Palo Alto has created the following programs outlined in the Palo Alto 2030 Comprehensive Plan to help address these issues: • Program N5.1.2 Implement Bay Area Air Quality Management District (BAAQMD) recommended standards for the design of buildings near heavily traveled roads, in order to minimize exposure to auto-related emissions (123). • Program N5.1.3 Explore adopting new standards that target the reduction of very fine particulate matter (PM2.5), which is associated with increased impacts on health (123). Increases in allergen and air pollutants resulting from changing environmental conditions could lead to hazardous conditions, such as heat stroke and respiratory ailments for sensitive groups (State of California Natural Resources Agency 2009). Noise This section will cover the existing noise conditions of the project site and its surroundings and relevant state and local regulatory requirements. Regulatory Setting Noise Element California law requires that all General Plans include a Noise Element addressing noise- related impacts on the community and policies to regulate it. Goal N-6 of the General Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 93  Packet Pg. 100 of 389  91 Existing Conditions Report | Environment Plan outlines policies related to minimizing noise and planning for land uses with consideration for noise levels. Additionally, the goal summarizes policies related to construction, airport, and rail noise. Noise Ordinance The Palo Alto Noise Ordinance outlines allowable noise levels for residential and commercial properties based on the ambient noise level. It also limits hours of construction. Residential noise levels are limited to six decibels above the local ambient and commercial and industrial properties are limited to eight decibels above the local ambient. Noise Background In a city, noise levels affect land use decisions. Noise is defined as unwanted sounds considered loud or disruptive. Noise is an important environmental consideration as it can be hazardous to quality of life, health and safety. Long-term exposure to noise can cause hearing loss and sleep pattern disturbances. In a city, noise levels affect land use decisions with the major noise sources typically being related to motor vehicles, airports, and construction. Community noise encompasses all the noise levels within a given environment and generally refers to ambient noise. It is usually measured using the Day-Night Average Level (Ldn). Ldn is a calculation of an area’s noise levels over a 24-hour period with special calculations overnight on account of human perceptions of noise. Thus, sounds at night are recorded at a higher noise level. Noise levels are measured in decibels. Noise Sources In the city of Palo Alto, the major noise sources are traffic, trains, airports, construction, and yard maintenance. The most predominant noise course is traffic noise from vehicles along the roadways. Vehicular Noise The highest noise levels occur along high traffic volume roadways, including freeways, service roads, and arterials. To aid the understanding of the major noise courses of the city, a noise contour map is made available in the Comprehensive Plan. As can be seen in Figure 11, the noise coming from Highway 101 bleeds into the project area at 70 decibles adjusted (dBA), 65 dBA, and 60 dBA. In the San Antonio Road Corridor, the high traffic roadways are Highway 101, San Antonio Road, Alama Street, and the railroad. Highway 101 produces the most vehicular noise followed by San Antonio Road. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 94  Packet Pg. 101 of 389  92 Existing Conditions Report | Environment San Antonio Road functions as a service road which means there is a high volume of cars and trucks that pass through. Future noise contour projections predict the noise level will continue to increase affecting a larger area of the city and project area. Airport The project area is close to two airports: the Palo Alto Airport, a general aviation airport, and Moffett Field Airport, a civil-military airport in the City of Mountain View. Both airports are at a safe distance to not have to be considered a major source of noise for the plan area, according to airport noise contour maps. Noise Sensitive Areas The City’s Comprehsenive Plan includes considerations for land use designations according to noise sensitivity levels. Land uses considered to be “sensitive receptors” include homes, schools, medical clinics, senior and childcare facilities, public open spaces, and conservation areas. The outdoor noise levels in residential areas should not exceed 60 DB, except when the city determines that it is not economically or aesthetically feasible. Table 2 outlines the acceptable noise levels for various land uses. Table 2 - Noise sensitive land uses Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 95  Packet Pg. 102 of 389  93 Existing Conditions Report | Environment Figure 11 - Noise contour map of the City of Palo Alto Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 96  Packet Pg. 103 of 389  94 Existing Conditions Report | Environment Key Terms • 100-year flood: a flood that has a 1 percent or greater of happening in any given year • AF (acre-foot)/Year: annual quantity of water measured in acre-feet over a year. An acre-foot refers to the amount of water needed to cover an acre of land about 1 foot deep. • Decibel: unit of measure for the intensity of sound • GHG (greenhouse gas): gases in the earth’s atmosphere that trap heat causing an increase in average surface temperature. The major source is the burning of fossil fuels- coal, natural gas, and petroleum. • GPM (gallons per minute): measure of the volume of water flow a water pump can move, in gallons per minute • Human hazards: (anthropogenic) result of human intent or error such as pollution, toxic wastes, dam failures • Liquefaction: when loosely packed, water-logged sediments on the ground surface lose their strength causing soils to tilt and sink damaging buildings and roads • Primary pollutants: air pollutants emitted directly from a source, such as those coming from cars, power plants, wildfires. • Secondary pollutants: air pollutants formed in the atmosphere as a result of a reaction between primary pollutants and molecules in the atmosphere. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 97  Packet Pg. 104 of 389  95 Existing Conditions Report | Environment Sources California Water Boards. (n.d.). GeoTracker. https://geotracker.waterboards.ca.gov/ City of Palo Alto. (2017). Baylands Conservation and Development Plan: Existing Conditions Report. [PDF]. https://www.cityofpaloalto.org/files/assets/ public/v/1/community-services/parks-and-open-space/baylands/bccp_ existingconditions_20171213_r.pdf City of Palo Alto. (n.d.). Local Hazard Mitigation Plan. https://www.cityofpaloalto. org/Departments/Emergency-Services/Plans-and-Information/Local-Hazard- Mitigation-Plan City of Palo Alto. (n.d.). Protected Trees. https://www.cityofpaloalto.org/Departments/ Public-Works/Public-Services/Palo-Altos-Urban-Forest/Development-Process/ Protected-Trees City of Palo Alto. (2022). Palo Alto Sea Level Rise Vulnerability Assessment, June 2022. [PDF]. https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/ environmental-compliance/sea-level-rise/palo-alto-sea-level-rise-vulnerability- assessment-june-2022-062822-linked-final.pdf City of Mountain View. (n.d.). Shoreline at Mountain View. https://www.mountainview. gov/our-city/departments/community-services/shoreline-at-mountain- view?locale=enCity of Palo Alto. (2020). Urban Water Management Plan 2020. https://www.cityofpaloalto.org/files/assets/public/v/1/utilities/uwmp/2020- uwmp_final-submission-to-dwr.pdf City of Palo Alto. (2019). Urban Forest Management Plan: After Adoption. [PDF]. https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/tree-section/ ufmp/urban-forest-mp-after-adoption-reduced-2-25-19-complete.pdf Santa Clara County Emergency Management. (n.d.). Local Hazard Mitigation Plan Volume 1. [PDF]. https://emergencymanagement.sccgov.org/sites/g/files/ exjcpb261/files/For%20Partners/Local-Hazard-Mitigation-Plan-LHMP-Vol-1.pdf Santa Clara Valley Urban Runoff Pollution Prevention Program. (n.d.). Barron Watershed. https://scvurppp.org/watersheds/santa-clara-basin-watersheds/ barron-watershed/ Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 98  Packet Pg. 105 of 389  96 Existing Conditions Report | Environment Santa Clara Valley Water District. (n.d.). Palo Alto Flood Basin Tide Gate Structure Replacement Project. https://www.valleywater.org/project-updates/palo-alto- flood-basin-tide-gate-structure-replacement-project Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 99  Packet Pg. 106 of 389  Urban Design Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 100  Packet Pg. 107 of 389  98 Existing Conditions Report | Urban Design Introduction This Existing Conditions Report divides the Urban Design of San Antonio Road into city structure, corridor structure, streetscape, urban form, and walkability. Palo Alto’s city structure consists of neighborhoods and districts. There are thirty-six residential neighborhoods within the city, regional and multi-neighborhood commercial centers, and multiple employment districts (with the San Antonio Road Corridor being one of them). The corridor structure has been dissected into community context, nodes, and gateways. Community context involves residential, commercial, and business/ industrial contexts. Nodes include regional, sub-regional, and neighborhood nodes. The corridor contains two gateways, one of which is a designated entrance into the city. The streetscape section details urban greenery, pedestrian experience, and wayfinding accessibility. Urban form discusses land usage and zoning, specifying the corridors gateways and existing typologies. Walkability involves the physical form of the corridor and amenities provided to pedestrians to improve the corridor experience Major Findings • City Structure: Palo Alto’s Urban Design Element is organized into residential neighborhoods, commercial centers, and distinct employment districts. Palo Alto is comprised of 35 distinct neighborhoods, with an emphasis on single-family and multi-family residential land use classifications. The majority of neighborhoods in Palo Alto can be broadly categorized into traditional and modern. These architectural and development characteristics distinguish neighborhoods in terms of street layout, aesthetics, and privacy. • Corridor Structure: The corridor structure consists of contexts, nodes, and gateways. There are residential, commercial, and business/industrial contexts. Corridor nodes include of regional, sub-regional, and neighborhood categories. Gateways are located at the north and south ends of the corridor adjacent to onramps from Highway 101 and the Expressway. • Urban Form: San Antonio Road is identified as a gateway to the city. The project site includes single- and multi-family residential, light industrial, mixed-use, office park, and service commercial land uses. The corridor is divided into four distinct zoning districts with associated development standards. The project site features a range of building typologies, with existing structures varying from one to five stories. Lower- density residential and smaller businesses typically have fewer stories, while high- density residential and industrial properties tend to have more stories. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 101  Packet Pg. 108 of 389  99 Existing Conditions Report | Urban Design • Streetscape: San Antonio Road’s appearance is utilitarian in nature, but pockets of architectural interest add character to the site. The project area is primarily oriented toward office and industrial uses resulting in prevelant on-street parking and vehicle oriented spaces. Many of the buildings have a degree of landscaping linking them to the street. While the sidewalk is well-maintained along the main corridor, small arterial streets have less consistent sidewalks. The street tree network is robust with greenery and landscaping throughout. The corridor maintains effective wayfinding making the area easily-navigable. There are various visible and exposed utility boxes. Several vacant buildings and larger, empty parking lots occupy the streetscape, detracting from a pedestrian-oriented vibrant feel. • Walkability: The San Antonio Road Corridor lacks consistent walkability, with limited and often poorly maintained sidewalks that primarily cater to vehicles, placing pedestrians between parked and driving vehicles. Pedestrian amenities are scarce, including minimal urban furniture, limited public transit access, and a low number of crosswalks, especially considering the length of the corridor. Despite nearby essential businesses, the site lacks the comprehensive amenities necessary for a pedestrian-friendly environment. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 102  Packet Pg. 109 of 389  Existing Conditions Report | Urban Design 100 City Structure Neighborhoods & Districts The Land Use and Community Design Element of Palo Alto’s Comprehensive Plan delineates urban form into three land use categories: residential neighborhoods, commercial centers, and employment districts. Residential Neighborhoods Figure 1 - Residential Neighborhoods Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 103  Packet Pg. 110 of 389  101 Existing Conditions Report | Urban Design Palo Alto consists of many unique neighborhoods that have expanded as the community has grown. According to a map published by PaloAltoOnline, there are a total of 36 distinct neighborhoods, primarily characterized by single-family and multi- family residential land use classifications. San Antonio Road occupies the eastern perimeter of Palo Alto and is in close proximity to several residential neighborhoods. Figure 1 detailing these neighborhoods and their proximities to the site is provided for reference above. Commercial Centers The city has both regional and multi-neighborhood commercial centers that serve as hubs for retail, office, and residential activities. Examples include the Stanford Shopping Center and University Ave./ Downtown Palo Alto. The Palo Alto Comprehensive Plan identifies downtown as a key player in fostering a sense of community and promoting the cultural identity of the city. With an emphasis on pedestrian and transit accessibility, streetscape elements such as trees, benches, outdoor seating areas, sidewalks, and plazas comprise Downtown’s urban design. Notably, Stanford Shopping Center has also undergone a transformation in recent years, shifting from a vehicle-oriented retail center to a more walkable, pedestrian-friendly environment. Employment Districts The city also features distinct employment districts, including Stanford Research Park, Stanford Medical Center, East Bayshore and San Antonio Road Corridor. These Districts are characterized by large one- to four-story buildings, mainly serving industrial and office uses. Access is primarily by automobile or employer-supported transit, with multi-family residential located near these employment uses. Figure 2 - Commercial Center Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 104  Packet Pg. 111 of 389  102 Existing Conditions Report | Urban Design Neighborhood Characteristics Although there exists some variation in the characteristics of these neighborhoods in Palo Alto, the majority exhibit a relatively uniform appearance and structural layout. These neighborhoods can be broadly categorized into two main types based on their architectural and development characteristics: traditional (dating back to pre-1940s) and modern. Traditional neighborhoods, primarily located on the west side of the city, adhere to classic development patterns, featuring narrow streets, curbside parking, and street trees between the sidewalk and curb. In contrast, modern neighborhoods, heavily influenced by Modernist design principles, feature houses with austere facades and a focus on private backyard areas. These neighborhoods are distinguished by their winding streets and cul-de-sacs, fostering a heightened sense of privacy. The presence of flattened curbs directly abutting the sidewalk, without a planting strip, is a notable departure from the appearance of traditional neighborhoods. Corridor Structure The San Antonio Corridor which spans the length of the project site is composed of unique neighborhoods and distinct commercial/employment districts. The corridor structure has been dissected into community context, nodes, and gateways. Figure 3 - Employment Districts Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 105  Packet Pg. 112 of 389  103 Existing Conditions Report | Urban Design SAN ANTONIO RD. ALM A S T . MIDD L E F I E L D R D . E. CHA R L E S T O N R D . Figure 1: Contexts, Nodes, and Gateways .25 miles0 Residential Context Commercial Context Industrial/Business Context Gateway Regional node Sub-regional node Neighborhood node Preschools and schools Employment districst Project Site CONTEXTS, NODES, GATEWAYS Figure 4: Corridor contexts, nodes, and gateways Figure 4 - Corridor contexts, nodes, and gateways Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 106  Packet Pg. 113 of 389  104 Existing Conditions Report | Urban Design Community Context Community context refers to the character of the built environment alongside the corridor. This influences the ways in which people use the corridor and should guide the design of adjacent infrastructure. The San Antonio Road Corridor consists of residential, commercial, and business/industrial contexts. Residential Context The corridor’s residential context includes single-family residential, multi-family residential, and mixed-use residential neighborhoods. Greendell, San Alma, and The Greenhouse are three of Palo Alto’s thirty-six designated neighborhoods which fall within site boundaries. Greendell is a single-family neighborhood between Ferne Avenue, San Antonio Avenue and Mackay Drive. Surrounded by commercial areas, the neighborhood features a tranditional layout with winding streets and cul-de-sacs. San Alma is a multi-family residential neighborhood located east of Alma Street, off San Antonio Avenue, and consists of one and two story townhomes and below market rate condominiums. The Greenhouse is a multi-family residential neighborhood located off of San Antonio and Leghorn consisting of a set of two adjoining condominium complexes dotted with trees, walking paths, and lawns. Figure 5 - Single-family housing Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 107  Packet Pg. 114 of 389  105 Existing Conditions Report | Urban Design Figure 6: Multi-family housing The Taube Koret Campus for Jewish Life is an 8.5-acre mixed-use residential site anchored by the Oshman Family Jewish Community Center and Moldaw Family Residences. Throughout the site, design elements were placed strategically to pay tribute to the project’s Jewish roots and evoking the feeling of an urban village. The Moldaw Family Residences are upscale senior living units with independent and dependent living options available. Figure 7: Taube Koret Campus Commercial Context While the character of the corridor is largely residential and business/industrial, the segment of the San Antonio Road Coordior between Middlefield Road and East Charleston Road contains a majority of the corridor’s commercial businesses. The character of the commercial strip is auto-oriented. Landscaping efforts have been made along the commercial corridor which helps reduce visual unease from car-oriented lots. The east and west sides of San Antonio Road have protected sidewalks along the entire commercial segment, as well as street parking along roughly half of the segment. Figure 6 - Multi-family housing Figure 7 - Taube Koret Campus Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 108  Packet Pg. 115 of 389  106 Existing Conditions Report | Urban Design The Palo Alto 2030 Comprehensive Plan identifies this segment of San Antonio Road as service commercial, with businesses along the segment providing citywide and regional services that rely on an auto-oriented customers. Parking lots require good automobile and service access so customers can safely load and unload without impeding traffic. To encourage housing near transit centers, nonresidential FARs will range up to 0.4 and higher density multi-family housing may be allowed in specific locations. On the west side of San Antonio Road, just outside of the project area boundary line, the Charleston Shopping Center is classified as a Neighborhood Center. This is a small retail area that draws customers from the immediate surrounding area. The Center includes a grocery store and a variety of smaller retail shops and offices oriented toward the everyday needs of local residents. Adjacent streets provide walking, biking, and transit connections. Figure 8: Buildings and roads in commerical segments Business/Industral Context The segment of San Antonio Road from the Highway 101 overpass to the northmost section of the project site, as well as alternating sections within the corridor are identified as diverse business and light industrial districts. This development type is not commonly found within the city. These districts are characterized by large one- to four- story buildings, with some taller buildings, separated by parking lots and landscaped areas. The districts are accessed primarily by automobile or employer-supported transit, though future changes in land use and tenancy could support a shift toward transit, pedestrian, and bicycle travel. These areas serve as an opportunity for the service industry and start-up businesses to rent low-cost larger spaces. Figure 8 - Buildings and roads in commercial segments Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 109  Packet Pg. 116 of 389  The business and light industrial areas of the site contribute to a majority of the San Antonio corridor being included in the employment district. These areas are dominated by low-rise offices with large parking lots. The health and longevity of businesses within the employment district are important because they provide thousands of local jobs, establish a customer base for many other Palo Alto businesses and generate tax revenues for the city. Figure 9: Buildings and roads in commerical segments Nodes Nodes are specific areas with concentrated transportation activity. These could be intersecting streets, transit access, trailheads and accesses, parking accesses, and crossing pedestrians and cyclists. The corridor contains regional, sub-regional, and neighborhood nodes. Regional Nodes The intersection of Highway 101 and San Antonio Road is a regional node located within the project area. Highway 101, also known as the Bayshore Freeway, is a major north-south freeway that runs along the western edge of Palo Alto. It is a crucial transportation corridor for the San Francisco Peninsula and the broader Bay Area, connecting communities from San Jose in the south to San Francisco in the north. The Highway 101 and San Antonio Road intersection is a transportation hub where various modes of transportation converge. In addition to vehicular traffic, it also provides access to public transit options, including bus services and shuttle routes. The intersection of Highway 101 and San Antonio Road provides access to neighboring communities such as Mountain View, Palo Alto, and Los Altos. It’s a gateway to Silicon Valley and other areas in the South Bay. Subregional Nodes The intersection of Alma Street and San Antonio Road is a sub-regional node located within the project area. It provides access to major destinations in the area, including Stanford University, Stanford Shopping Center, and the San Antonio Shopping Center. 107 Existing Conditions Report | Urban Design Figure 9 - Buildings and roads in commercial segments Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 110  Packet Pg. 117 of 389  The intersection features several commercial establishments, including restaurants, convenience stores, and service stations. These businesses cater to both local residents and commuters passing through the area. Neighborhood Nodes The intersection of Middlefield Road / San Antonio Road and East Charleston Road / San Antonio Road are neighborhood nodes located inside the project site. The intersections serve as vital links between several neighborhoods and commercial areas, as well as access points for commuters and residents traveling through Palo Alto. The intersections are easily accessible by car, public transportation, and bicycles. They contribute to the overall connectivity of the city. Gateways A gateway refers to a key entrance or transition point into an area that provides a sense of arrival. Palo Alto has tried to strengthen community identity by ensuring clear and memorable entrances into the city. A gateway into the City of Palo Alto and the San Antonio Corridor is located on San Antonio one-tenth of a mile north of the intersection at East Charleston Road. A sign located at this gateway serves as a visual landmark representing the entrance to the corridor. The corridor’s second gateway is located at the south end of the project site at the intersection of Alma Street and San Antonio Road. Streetscape The San Antonio Corridor is recognized as a primarily employment-focused district. It is broadly characterized by one- to four-story buildings separated by parking lots and with interspersed landscaping and greenery. Due to its identity as an employment district, architectural styles along the corridor are utilitarian and industrial in style with arterial streets mainly serving offices and industrial buildings. Building styles do vary in appearance with different facades and colors, but are similar in position on the street with little transparency. Hatemi Mosque at the northern end of the site, and Albert and Janet Schultz Cultural Arts Hall, at the intersection of Charleston Road and San Antonio Road, are two religious-based organization buildings that present as architecturally unique for the corridor. On-street parking is also very prevalent on-site, with paved sidewalks existing on one or both sides of the street. A typical street section of San Antonio Road is provided below, highlighting the vehicle-oriented nature of the site. 108 Existing Conditions Report | Urban Design Figure 10: Gateway into Palo AltoFigure 10 - Gateway into Palo Alto Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 111  Packet Pg. 118 of 389  109 Existing Conditions Report | Urban Design Figure 11 - San Antonio Road Figure 12 - Lack of light Figure 14 - Parking lots with greenery common between buildings Figure 13 - Lack of transparency Figure 15 - Jewish Center Figure 17 - Hatemi MoqueFigure 16 - Jewish Center architecturally interesting elements Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 112  Packet Pg. 119 of 389  Urban Greenery, Pedestrian Experience, & Wayfinding Known for its robust urban forest, Palo Alto’s Land Use and Community Design Element states that maintaining a consistent and full urban forest is key to setting a coherent tone and providing human scale to the street. On-site, trees line the corridor on either side adding greenery and providing shade. Along with street trees, many of the buildings have a degree of landscaping linking them to the street, along with a pavement. While the sidewalk is well-maintained along the main corridor, small arterial streets have less consistent sidewalks with signs of aging. Utility boxes are also visible and exposed throughout the site with many areas lacking attractive streetscaping. The San Antonio Road Corridor is effective in its wayfinding as street signs are consistent throughout the site and make the area easily-navigable yet not visually interesting for pedestrians. Several vacant buildings and larger empty parking lots occupy the streetscape detracting from a pedestrian-oriented vibrant feel. Due the area’s purpose as an employment district, its appearance is utilitarian in nature, but pockets of architectural interest are apparent and greenery adds character to the site. 110 Existing Conditions Report | Urban Design Figure 18 - Urban Forest Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 113  Packet Pg. 120 of 389  Urban Form Land Uses In the 2030 Palo Alto Comprehensive Plan, the Land Use and Community Design Element designates several land uses to the project site: single- and multi-family residential, light industrial, mixed-use, office park, and service commercial. The Plan lays a framework for urban form in the site based on these designations. 111 Existing Conditions Report | Urban Design Figure 20 - Visible utility boxesFigure 19 - Sidewalk condition Figure 21 - Vacant lots Figure 22 - Wayfinding Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 114  Packet Pg. 121 of 389  • The Single-family land use applies to residential neighborhoods. This designation is primarily characterized by detached single-family homes. There is typically one dwelling unit on each lot, although net density ranges from one to seven units per acre. Accessory dwelling units and duplexes are permitted with a maximum density of 14 units per acre. • Multi-family residential allows for a varying number of permitted housing units, depending on existing land use, proximity to major streets/public transit and shopping, and environmental problems. The net density ranges from 8 to 40 units per acre. • Light industrial consists of wholesale and storage warehouses with compatible residential and mixed-use projects. Additionally, in specific locations, higher density multi-family housing is permitted. FAR ranges up to 0.5. • Mixed-use enables multiple functions, either within the same building or adjacent to one another. This promotes live, work, play and shopping activities in close proximity. Permitted devlopment uses are Live/Work, Retail/Office, Residential/Retail and Residential/Office. FAR ranges up to 1.15 with the exception of devlopment along transit corridors or near multimodal centers; this permitted FAR is up to 2.0- 3.0. • Office park development is typically buffered from adjacent residential uses. Depending on the site, maximum FAR ranges from 0.3 to 0.5. • Service commercial facilities are reliant on customers traveling by vehicle and provide citywide and regional services. In specific locations, higher-density multi- family housing is permitted. FAR ranges up to 0.4. Gateway The Land Use and Community Design Element also categorizes San Antonio Road as a gateway. The Plan defines a gateway as “a point along a roadway at which a motorist or pedestrian gains a sense of having entered the City or a particular part of the City. This impression can be imparted through such things as signs, monuments, landscaping, a change in development character or a natural feature such as a creek.” Furthering this definition, the Land Use and Community Design Element states, “community identity is strengthened when the entrances to the city are clear and memorable. Well-designed gateways are defined by natural and urban landmarks that complement the character and identity of the neighborhood.” Goal L-9 in The Plan addresses city gateways by: Policy L-9.7: Strengthen the identity of important community-wide gateways. Program L9.7.1: Enhance gateway sites with special landscaping, art, public spaces and/or public buildings. Emphasize creek bridges and riparian settings. 112 Existing Conditions Report | Urban Design Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 115  Packet Pg. 122 of 389  Zoning The San Antonio Road Corridor contains four different zoning districts: General Manufacturing (GM), Planned Community (PC), Service Commercial (CS), and Low Density Residential Multi-Family (RM-20). These districts all contain relevant development standards which have influenced the project area’s existing urban form. The following table depicts the height and setback development standards per each zone within the project boundary: Zoning Height Setback General Manufacturing (GM)Max. 35-50 ft Min. 20 ft along frontage Planned Community (PC)N/A, Max. 35-50 ft within 150 ft of PC district N/A Service Commercial (CS)Max. 35-50 ft Front yard 10 ft Low Density Residential Multi-Family (RM-20)Max. 30 ft Min. front yard 20 ft Existing Typologies Existing buildings in the project site vary from one to five stories, corresponding with use. Lower density residential and businesses are typically shorter, whereas high-density residential and industrial uses tend to have a greater number of stories. The urban form is largely characterized by modern, modest architecture. This is influenced by the great amount of industrial building uses, such as car dealerships and gas stations. Larger buildings, such as high-density housing and hotels, follow a more contemporary architecture. The greatest exception to this modern architectural character is the Hatemi Mosque. 113 Existing Conditions Report | Urban Design Table 1 - Height and setback standards Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 116  Packet Pg. 123 of 389  Urban Form Gallery 114 Existing Conditions Report | Urban Design Figure 23 - The Hatemi Mosque has ornate building form, religious function, and site which contains landscaping and a plaza. This contrasts the typical industrial uses and forms fronted by surface parking areas. Figure 24 - Two story, industrial-use buildings fronted by surface parking. This typology and architectural style is typical of urban form within the San Antonio Road Corridor. Figure 25 - Multi-story housing at the Oshman Family Jewish Community Center. Figure 26 - Typical urban form along office building typologies. Figure 27 - Urban form of contemporary hotels. Figure 28 - Urban form of contemporary housing units. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 117  Packet Pg. 124 of 389  Walkability Physical Form As one travels from south to north, some parts of the San Antonio Road Corridor are more walkable than others. The southern portion of the corridor closest to Alma Street is strictly accessible by vehicle or bike. A sidewalk begins near Mckay Drive; however, San Antonio Road is still a busy boulevard in this area. The sidewalk continues on the San Antonio portion of US Highway 101 but is unprotected. The sidewalk is not consistent on both sides of the street throughout the corridor. Sidewalk area is often adjacent to surface parking. The result is that vehicles sandwich pedestrians on both sides: parked vehicles are on one side, driving vehicles on the other. The majority of the sidewalk is in poor condition—cracked, warped, and narrow. Although landscaping exists adjacent to sidewalks in some areas, other areas are bordered by dirt rather than landscaping. Alternatively, in other parts of the corridor, the sidewalk is directly adjacent to buildings. There are a total of eight crosswalks which cross San Antonio Road within the project area, which is a limited quantity in relation to the nearly two- mile stretch of road. The existing corridor form on San Antonio Road caters primarily to vehicles, which hinders pedestrian accessibility. Amenities Pedestrian amenities along San Antonio Road are limited. There is minimal urban furniture; only a few benches total. This is the result of the narrow sidewalk which is often bordered by surface parking or adjacent building fronts. Thus, the capacity for urban furniture is low. Public transit access is also minimal along the San Antonio Road Corridor: there are three bus stops within the site. Regarding proximity to essential needs, the project area contains multiple housing developments and single-family housing. Regarding businesses which cater to everyday needs, Crossroads Specialty Foods is located in the project area. Costco, Safeway, Target, Trader Joes, and Walmart are all proximate to the site. Except for Trader Joes, each of these businesses has a pharmacy. 115 Existing Conditions Report | Urban Design Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 118  Packet Pg. 125 of 389  Walkability Gallery 116 Existing Conditions Report | Urban Design Figure 29 - Sidewalk adjacency to landscaping. Landscaping varies greatly in quality along the San Antonio Road Corridor. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 119  Packet Pg. 126 of 389  Key Terms • Street Corridor - a community’s primary public realm. Urban designers call them “street corridors” because, like hallways in a building, they are formed by the buildings on each side. • Project Area - The boundary in which the scope of work is located in. • Node - A point along a roadway at which a motorist or pedestrian gains a sense of having entered the City or a particular part of the City. • Gateway - An entrance or gathering place which acts as a transition between different spaces as well as a nexus for the people who inhabit and frequent these places • Streetscape - A broad term to mean everything that makes up a scene on a street,including roads, buildings, sidewalks, and greenery. • Wayfinding - The ways in which people orient themselves in physical space and navigate from place to place, especially in relation to signage and urban fabric of a given place. • Urban forest - Tree populations in urban settings, including parks, street trees, landscaped boulevards, gardens, river and coastal promenades, greenways, river corridors, wetlands, and nature preserves. 117 Existing Conditions Report | Urban Design Figure 30 - In certain stretches of the corridor, there is no sidewalk. Figure 32 - Sidewalk adjacency to surface parking. This is typical for the corridor. Figure 31 - Non-existent sidewalk Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 120  Packet Pg. 127 of 389  Sources City of Palo Alto. (2017). City of Palo Alto Comprehensive Plan. City of Palo Alto. https://w ww.cityofpaloalto.org/files/assets/public/v/4/planning-amp- development-services/3.-comprehensive-plan/comprehensive-plan/full- comp-plan-2030_with-dec19_22-amendments.pdf City of Palo Alto. (2021). Land Use and Community Design. City of Palo Alto. https:// www.cityofpaloalto.org/files/assets/public/v/2/planning-amp-development- services/3.-comprehensive-plan/comprehensive-plan/2030-comp-plan-2-land- use-june-21.pdf City of Salt Lake City Utah. (n.d.). Existing Conditions Report. City of Salt Lake City. https://www.slc.gov/transportation/wp-content/uploads/ sites/11/2022/10/600700N-Existing-Conditions-FINAL.pdf Lorenz, E. (2010, February 2). Palo Alto neighborhoods. Palo Alto Online |. https://www. paloaltoonline.com/news/2010/02/02/palo-alto-neighborhoods 118 Existing Conditions Report | Urban Design Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 121  Packet Pg. 128 of 389  Education, Culture, and History Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 122  Packet Pg. 129 of 389  120 Existing Conditions Report | Education, Culture, and History Introduction The Education, Culture, and History section of this document will provide a well- rounded view of the community, highlighting the distinctive characteristics and identity of Palo Alto and its residents. While the rest of this document meticulously details every attribute that makes up the physical identity of the city, this section will detail the cultural identity. Palo Alto has a unique relationship to higher education and a deep history of technological advancements that have shaped both the economy and the layout of the city. Palo Alto is made up of diverse peoples, populations, and religious bodies that have cultivated a community with a variety of experiences and cultural heritage. This section aims to complete the overall portrait of Palo Alto. Major Findings The demographic composition of the three educational institutions situated within the San Antonio Road Corridor exhibits a notable degree of cultural diversity. These findings are: • Fairmeadow Elementary School, designated for the San Antonio Road Corridor, showcases a diverse student body with 43.9 percent of Asian descent, 30.6 percent identifying as White, 13.7 percent of Latino heritage, 9.8 percent representing mixed racial backgrounds, 0.7 percent identifying as Black or African American, and 0.7 percent as Native Hawaiian or Pacific Islander. • Jane Lanthrope Stanford Middle School, the middle school within the corridor, mirrors this cultural diversity, with 45.8 percent of students identifying as Asian, 26.1 percent as White, 12.3 percent as Latino, 11.7 percent as of mixed race, 1.8 percent as Black or African American, and 1.3 percent as Native Hawaiian or Pacific Islander. • Henry M. Gunn High School, serving as the flagship institution for the San Antonio Corridor, comprises a student body that consists of 44.8 percent of Asian heritage, 30.7 percent of White ethnicity, 11.7 percent of Latino descent, 9.9 percent of mixed racial backgrounds, 1.4 percent identifying as Black or African American, and 0.9 percent as Filipino. • The San Antonio Corridor, geographically adjacent to Mountain View and in close proximity to Los Altos, encompasses a triad of school districts, catering to students from both Los Altos and Mountain View. Notably, K-8 students residing in Mountain View receive their primary education within the jurisdiction of the Mountain View Whisman School District, while their counterparts from Los Altos attend schools within the purview of the Los Altos School District. Importantly, students from both Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 123  Packet Pg. 130 of 389  121 Existing Conditions Report | Education, Culture, and History Mountain View and Los Altos converge upon high schools under the aegis of the Mountain View-Los Altos High School District. This consolidated district comprises three high schools: Los Altos High, Mountain View High, and Alta Vista High, which specializes as a continuation school, offering alternative educational pathways. • The project area is situated in a culturally vibrant section of Palo Alto, characterized by a significant Asian American presence, including individuals of Chinese, Indian, and Korean descent. Cultural education centers, such as the Palo Alto Chinese School, are in close proximity to the project area, and provide opportunities for students and families to learn cultural heritage and promote cross-cultural understanding. • The region is home to a variety of cultural institutions that play a role in artistic expression, cultural appreciation, and community engagement. Some of these include the Palo Alto Art Center, the Foster Museum, and Shoreline Amphitheatre. These spaces are dedicated to fostering artistic and musical expression, and draw in visitors and families to their events. The Foster Museum is dedicated to celebrating artist-explorer Tony Foster’s watercolor works and is within the project area. • In addition to cultural diversity, Palo Alto features a multitude of religious organizations and institutions around the project site. The Taube Koret Campus for Jewish Life is one of the larger community centers on the project area, scaling 8.5 acres of amenities, senior living facilities, and parking. Community events, Jewish festivals, art exhibitions, and educational programs are held on the campus, contributing to a rich and diverse cultural environment in Palo Alto. • Mitchell Park and the Mitchell Park Branch Library stand as prominent landmarks near the project area. Mitchell Park boasts 21.4 acres of open space, tennis courts, youth facilities, and walking trails, while Mitchell Park Branch Library features 41,000 square feet encompassing the community meeting spaces, shelves of books, and a wide array of resources and amenities that cater to residents of all ages and interests. As the largest public park and library in the city, they serve as a central hub for community engagement and enrichment. • Palo Alto owes its existence to the founding of Stanford University in 1884. The university, with free tuition, attracted students and contributed to the region’s development. The Stanfords initially sought to establish a college town by engaging Mayfield but faced rejection due to uncertainty. Instead, they purchased land north of Mayfield, named it Palo Alto, and fostered its growth as a “dry town.” Over time, Palo Alto thrived, while Mayfield declined and eventually merged with Palo Alto in 1925, ceasing to exist as its own entity. • In the early 21st century, both Stanford University and Palo Alto experienced substantial growth. After the war, Palo Alto went through a remarkable boom, driven by the establishment of the Stanford Industrial Park, the Stanford Shopping Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 124  Packet Pg. 131 of 389  122 Existing Conditions Report | Education, Culture, and History Center, and the Stanford Medical Center’s relocation. The population more than doubled, reaching 55,000 by 1960. The city solidified its position as a hub for science and technology, notably with the contributions of Hewlett and Packard, Fairchild Semiconductor, and the development of Silicon Valley. Despite ongoing challenges, Palo Alto continues to thrive in the heart of Silicon Valley. • The project area used to be zoned as a residential area, but in 1951, the Palo Alto City Council decided to change that. They annexed San Antonio Road and made amendments to the zoning laws in 1952. This change transformed the area from residential to a hub of light industrial activity. In 1952, the Palo Alto City Council played a pivotal role in shaping the current character of the site as a thriving light industrial area. Their decisions back then not only laid the foundation for the site’s industrial development but also serve as the driving force behind the current efforts by the City of Palo Alto to revisit and modify the zoning regulations. Education Palo Alto Unified School District (PAUSD) The educational institutions within Palo Alto are administered by the Palo Alto Unified School District (PAUSD), an autonomous special-purpose local government entity distinct from the City of Palo Alto. PAUSD’s jurisdiction encompasses all public schools located within Palo Alto, as well as portions of Los Altos Hills, Portola Valley, and the Stanford University Campus. Notably, the exclusive exception within Palo Alto, outside the PAUSD boundary, is the Monroe Park neighborhood, whose residents attend schools located in Los Altos. PAUSD plays a pivotal role in fulfilling the educational requirements of its students, providing a comprehensive array of academic offerings, as well as facilitating access to extracurricular activities and programs, including those related to athletics and the arts. Students within the San Antonio Road Corridor attend Fairmeadow Elementary School, Jane Lathrop Stanford (JLS) Middle School, and Henry M. Gunn High School. Notably, Greendell School, a preschool and special education institution catering to special needs and preschool is the only school from the Palo Alto Unified School District directly located within the project area. The schools within the San Antonio Road Corridor are conveniently situated near the local neighborhoods they serve. Fairmeadow Elementary, the nearest of these institutions, is a mere three-six minute drive away, and a short 15 to 25-minute walk Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 125  Packet Pg. 132 of 389  123 Existing Conditions Report | Education, Culture, and History from the project area. Adjacent to Fairmeadow Elementary School, Jane Lathrop Stanford Middle School can be reached within a three to six-minute drive or a 15 to 25-minute walk. Henry M. Gunn High School is conveniently accessible by a ten to fifteen-minute drive or a 15 to 20-minute bike ride to the campus. The schools in which students live in the Thi placement of PAUSD schools in the San Antonio Road Corridor ensures accessibility for students and parents, contributing to a seamless educational experience. Students from the San Antonio Corridor attend schools with diverse student populations. Fairmeadow Elementary School, Jane Lathrop Stanford (JLS) Middle School, and Henry M. Gunn High School has a mix of Asian, White, Hispanic and Latino, and mixed race students, resulting in a varied cultural background among the student body. Tables 1, 2, and 3 show the 2021 to 2022 student population demographics and the breakdowns of students per grade level for Fairmeadow Elementary School, Jane Lathrop Stanford (JLS) Middle School, and Henry M. Gunn High School. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 126  Packet Pg. 133 of 389  124 Existing Conditions Report | Education, Culture, and History Fairmeadow Elementary School 2021-22 Student Enrollment by Student Group Student Group Percent of Total Enrollment Female 46.3 Male 53.7 American Indian or Alaskan Native 0.0 Asian 43.9 Black or African American 0.7 Filipino 0.5 Hispanic or Latino 13.7 Native Hawiian or Pacific Islander 0.7 Two or More Races 9.8 White 30.6 English Learners 21.3 Foster Youth 0.0 Homeless 1.0 Migrant 0.0 Socioeconomically Disadvantaged 11.3 Students with Disabilities 10.5 Fairmeadow Elementary School 2021-22 Student Enrollment by Grade Level Grade Level Number of Students Kindergarten 58 Grade 1 66 Grade 2 66 Grade 3 79 Grade 4 67 Grade 5 72 Totall Enrollment 408 Table 1 - Fairmeadow Elementary school student population and demographics. From the School Accountability Report Card. Table 2 - Fairmeadow Elementary school student population and demographics. From the School Accountability Report Card. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 127  Packet Pg. 134 of 389  125 Existing Conditions Report | Education, Culture, and History Jane Lanthrop Stanford Middle School 2021-22 Student Enrollment by Student Group Student Group Percent of Total Enrollment Female 45.4 Male 54.5 American Indian or Alaskan Native 0.0 Asian 45.8 Black or African American 1.8 Filipino 0.9 Hispanic or Latino 12.3 Native Hawiian or Pacific Islander 1.3 Two or More Races 11.7 White 26.1 English Learners 6.9 Foster Youth 0.1 Homeless 0.6 Migrant 0.0 Socioeconomically Disadvantaged 10.9 Students with Disabilities 10.2 Jane Lanthrop Stanford Middle School 2021-22 Student Enrollment by Grade Level Grade Level Number of Students Grade 6 337 Grade 7 315 Grade 8 344 Totall Enrollment 996 Table 3- Jane Lanthrop Stanford Middle School student population and demographics. From the School Accountability Report Card. Table 4 - Jane Lanthrop Stanford Middle School student population and demographics. From the School Accountability Report Card. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 128  Packet Pg. 135 of 389  126 Existing Conditions Report | Education, Culture, and History Henry M. Gunn High School 2021-22 Student Enrollment by Grade Level Grade Level Number of Students Grade 9 428 Grade 10 468 Grade 11 491 Grade 12 481 Total Enrollment 1,868 Henry M. Gunn High School 2021-22 Student Enrollment by Student Group Student Group Percent of Total Enrollment Female 45.7 Male 54.3 American Indian or Alaskan Native 0.1 Asian 44.8 Black or African American 1.4 Filipino 0.9 Hispanic or Latino 11.7 Native Hawiian or Pacific Islander 0.4 Two or More Races 9.9 White 30.7 English Learners 2.7 Foster Youth 0.0 Homeless 0.3 Migrant 0.0 Socioeconomically Disadvantaged 9.9 Students with Disabilities 7.9 Table 6 - Jane Lanthrop Stanford Middle School student population and demographics. From the School Accountability Report Card. Table 5 - Henry M. Gunn High School student population and demographics. From the School Accountability Report Card. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 129  Packet Pg. 136 of 389  127 Existing Conditions Report | Education, Culture, and History According to The California Department of Education and The Paly Voice, Palo Alto Unified School District’s student population has declined by 15 percent since 2015. The California Department of Education’s Data shows that in the 2014 to 2015 school year, the student population was at a total of 12,527 students. The 2022 to 2023 school year had a student population of 10,318 students. This information can be seen in Table 7 below. Palo Alto Unified School District Student Population 2014-15 to 2022-23. Academic Year Total Enrollment 2022 - 23 10,318 2021 - 22 10,509 2020 - 21 10,754 2019 - 20 11,745 2018 - 19 11,992 2017 - 18 12,249 2016 - 17 12,287 2015 - 16 12,485 2014 - 15 12,527 Table 7 - Palo Alto Unified School District Student Population 2014-2015 to 2022-2023 Gathered from the California Department of Education. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 130  Packet Pg. 137 of 389  128 Existing Conditions Report | Education, Culture, and History Proximity to Surrounding Cities and Districts The San Antonio Road Corridor in Palo Alto is situated near Mountain View and Los Altos. In this region, there are three distinct school districts, both in Mountain View and Los Altos: the Los Altos School District, the Mountain View Whisman School District, and the Mountain View-Los Altos High School District. Elementary and middle schools in Mountain View and Los Altos operate independently under the administration of the Los Altos School District and the Mountain View Whisman School District, each serving its respective city. High school education, however, is a collaborative effort between the two cities through the Mountain View- Los Altos High School District (MVLA). MVLA oversees three high schools: Mountain View High School, Los Altos High School, and Alta Vista High School. Mountain View High School caters to the Mountain View community, Los Altos High School serves the City of Los Altos, and Alta Vista High School provides educational opportunities for students from both Mountain View and Los Altos. It is noteworthy that the San Antonio Road Corridor is currently not within the jurisdiction of any Mountain View or Los Altos school district. However, it’s worth mentioning that the anticipated housing growth in the area may result in changes to district boundary lines. The nearest high school to the corridor is Los Altos High School, approximately a seven-minute drive away, making it closer in proximity than Henry M. Gunn High School, which students from the corridor attend. The two closest middle schools are Egan Middle School in Los Altos and Crittenden Middle School in Mountain View, both reachable within a five to seven-minute drive from the San Antonio Corridor. Additionally, Monta Loma Elementary School, the nearest elementary school, is accessible within a two to five-minute drive. Notably, the San Antonio Road Corridor is closer to the schools in Mountain View and Los Altos compared to the Palo Alto schools attended by students in the area. Furthermore, it’s observed that the three school districts in Mountain View and Los Altos have smaller student populations compared to Palo Alto. The Palo Alto Unified School District, the Los Altos School District, and the Mountain View Whisman School District have all experienced declines in student population, while the Mountain View-Los Altos High School District has seen an increase in student enrollment. This demographic trend is depicted in Figures five, six, and seven, which illustrate student populations from the 2014-2015 academic year through 2022-2023. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 131  Packet Pg. 138 of 389  129 Existing Conditions Report | Education, Culture, and History Los Altos School District Student Population 2014-15 to 2022-23. Academic Year Total Enrollment 2022 - 23 3,355 2021 - 22 3,347 2020 - 21 3,576 2019 - 20 3,999 2018 - 19 4,246 2017 - 18 4,403 2016 - 17 4,527 2015 - 16 4,638 2014 - 15 4,675 Mountain View Whisman School District Student Population 2014-15 to 2022-23. Academic Year Total Enrollment 2022 - 23 4,522 2021 - 22 4,522 2020 - 21 4,753 2019 - 20 5,082 2018 - 19 5,110 2017 - 18 5,132 2016 - 17 5,125 2015 - 16 5,084 2014 - 15 5,065 Table 8 - Los Altos School District Population 2014 - 2015 to 2022 - 2023. California Department of Education. Table 9 - Mountain View Whisman School District Population 2014 - 2015 to 2022 - 2023. California Department of Education. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 132  Packet Pg. 139 of 389  130 Existing Conditions Report | Education, Culture, and History Mountain View-Los Altos Union High School District Student Population 2014-15 to 2022-23. Academic Year Total Enrollment 2022 - 23 4,448 2021 - 22 4,539 2020 - 21 4,536 2019 - 20 4,548 2018 - 19 4,394 2017 - 18 4,304 2016 - 17 4,101 2015 - 16 4,028 2014 - 15 3,881 Table 10 - Mountain View-Los Altos Union High School District Population 2014 - 2015 to 2022 - 2023. California Department of Education. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 133  Packet Pg. 140 of 389  131 Existing Conditions Report | Education, Culture, and History Private / Charter Schools The city of Palo Alto has 33 private schools located within the city limits ranging from preschool to high school. The San Antonio Road Corridor has four private schools within the project area. The private schools located within the project area are Kehillah Jewish High School, Imagination Lab school (TK-8th grade), Athena Academy (first to eighth grade for dyslexic children), and Gideon Hausner Jewish Day School. These vary in learning concepts, age range, religion, and overall learning objectives. Community Colleges The San Antonio Road Corridor and the City of Palo Alto currently don’t have any Community Colleges or Junior Colleges. Residents from this area generally attend Foothill College in Los Altos Hills, which is approximately a 13-minute drive away, or Cañada College in Redwood City, also about a 13-minute drive from the San Antonio Corridor. Both junior colleges pull from residents all around the County of Santa Clara. Foothill College is the larger of the two junior colleges, with a student population of 13,483 as of 2022. Cañada College, on the other hand, has an approximate student population of 5,619 as of the 2021-2022 academic year. Stanford University Stanford University is globally recognized for its leading role in research and its status as a prestigious higher education institution. It is celebrated for its commitment to academic excellence and its significant contributions to various fields, spanning technology, science, humanities, and social sciences. Established by the Stanford Family, the university has had a profound and long standing impact on Palo Alto, even preceding the city’s establishment. Located approximately a 15-minute drive from the San Antonio Road Corridor, Stanford not only serves as a substantial economic influence but has also shaped the local educational landscape. According to Stanford News, “Stanford University and Palo Alto Unified School District (PAUSD) have reached a conditional agreement on community benefits that will be provided to the school district as part of a possible development agreement for the university’s proposed General Use Permit. The estimated value of the community benefits package is $138.4 million over 40 years. The agreement is the result of facilitated discussions between PAUSD and Stanford, and will expand the over century- long partnership between the two educational organizations”(April 15th, 2019). Stanford has promised to create an innovative space for students and faculty to provide improvements to current PAUSD school sites. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 134  Packet Pg. 141 of 389  132 Existing Conditions Report | Education, Culture, and History Culture Cultural Institutions Cultural institutions in a city help foster community, cultural connection, and promote diversity in any city or town. Within Palo Alto, there are various cultural institutions within and near the project area alongside San Antonio Road Corridor. Some notable cultural institutions in the area include: • Palo Alto Art Center: Established in 1971, the Palo Alto Art Center is a nonprofit community founded and community driven space focused on making art accessible and welcoming the neighborhood to engage in art practices. The institution engages over 150,000 people each year through a variety of programs as an extension of the City of Palo Alto’s Division of Arts and Sciences, Department of Community Services. • Cantor Art Museum: Located at Stanford University, the Cantor Art Museum is an essential cultural resource for the region. Founded in 1891 with the university, the museum expanded and was renamed in 1999, thanks to lead donors Iris and B. Gerald Cantor. The Cantor Collection, spanning 5,000 years, boasts over 38,000 works of art from around the globe. • Foster Museum: The Foster Museum is a private non-profit museum dedicated to artist Tony Foster’s watercolor wilderness Journeys. Before its opening in 2016, the building served as an ambulance garage for the Lucille Packard Children’s Hospital. It underwent a conversion into a LEED Silver certified structure. It now serves as an exhibition of nature and wilderness works for the public. • Shoreline Amphitheatre: The Shoreline Amphitheatre is a prominent cultural and entertainment organization in the area. Established in 1986, the Shoreline Amphitheatre was built upon a landfill as part of the Shoreline Park Project in cooperation with the City of Mountain View and local promoter Bill Graham. It hosts a wide array of concerts, live performances, and cultural events, for up to 22,000 people. Demographics The most prominent demographic within the City of Palo Alto is White, followed by Asian and Hispanic or Latino. According to 2022 census data, the complete breakdown is as follows: Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 135  Packet Pg. 142 of 389  133 Existing Conditions Report | Education, Culture, and History Figure 1 - Geographic distribution of AAPI population across the Bay Area. From the Bay Area Equity Atlas. Figure 2 - Geographic distribution of Chinese population across the Bay Area. From the Bay Area Equity Atlas. Demographics Breakdown by Race Race Percentage White alone 52.5% Asian alone 35.1% Hispanic or Latino 7.0% Black or African American 2.1% Native Hawaiian and Other Pacific Islander 0.1% American Indian and Alaska Native 0.3% White alone, not Hispanic or Latino 50% Two or More Races 7.2% Table 11 - Demographic Breakdown by Race in Palo Alto, 2022 Census Data Within the broader category of “Asian”, there are various ethnic subgroups that exist in Palo Alto and add to its tapestry of diversity. Figure 1 illustrates the geographic distribution of Asian communities across the Bay Area. Figures 2, 3, and 4 depicts some of the prominent Asian subgroups within Palo Alto. According to the Bay Area Equity Atlas, there is a prevalent concentration of Asian communities alongside the San Antonio Corridor. The greatest Asian demographic in the area are Chinese residents, following with Indian and Korean. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 136  Packet Pg. 143 of 389  134 Existing Conditions Report | Education, Culture, and History Religious Organizations There are various religious organizations within and in proximity to the project area alongside San Antonio Road Corridor. These religious organizations function as pillars of spiritual and cultural activity, serving as focal points for individuals with diverse backgrounds and belief systems. Some of the religious organizations in the vicinity of the project area include: • Hatemi Mosque: Located within the project site on the northern side of San Antonio Road, the Hatemi Mosque is Palo Alto’s first freestanding mosque. The Hatemi Mosque project received approval from the city’s Architectural Review Board in 2008 and construction began in December 2011. Although the physical structure of the mosque had already been in place since 2014, it was not officially inaugurated until March 7, 2015, following Syedna Aali Qadr Mufaddal Saifuddin’s visit from India to bless the mosque. • VIVE Church: Located in the project site on Leghorn Street, VIVE Church is a non-denominational Christian church serving the Palo Alto and Mountain View community. Established in 2014, the church is one of ten physical locations globally and has grown to include an online community spanning over 20 countries. • The Church in Palo Alto: Located alongside E Charleston Road, the Church in Palo Alto is a Christian church that serves the local Christian community. It was founded in 2000 by a group of Christian families who were seeking a church that would provide a biblical foundation and a strong sense of community. The church quickly grew, and in 2002, it moved to its current location on Charleston Road. Figure 3 - Geographic distribution of Indian population across the Bay Area. From the Bay Area Equity Atlas. Figure 4 - Geographic distribution of Korean population across the Bay Area. From the Bay Area Equity Atlas. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 137  Packet Pg. 144 of 389  135 Existing Conditions Report | Education, Culture, and History • Abundant Life Christian Fellowship: Abundant Life Christian Fellowship is a non-denominational Christian church located in the project area within the Oshman Family Jewish Community Center (JCC). Founded in 1982, the church has established a congregation of over 1,000 people. Additional Churches Nearby the San Antonio Road Corridor include: • Lord’s Grace Christian Church • Palo Alto Church of Christ • New Life Church • Current Silicon Valley Church • Palo Alto First Christian Church • New Vine Community Church • Keddem Congregation • Congregation Etz Chayim • Congregation Emek Beracha • Congregation Kol Emeth • The Church of Jesus Christ of Latter-day Saints Taube Koret Campus for Jewish Life The Taube Koret Campus for Jewish Life is one of the largest projects organized by the Bay Area Jewish community that sits on the site on the intersection at San Antonio Road and E Charleston Road. Built in 2009, the 8.5-acre community is home to the Oshman Family Jewish Community Center, Moldaw Family Residences, underground parking amenities, and several other Jewish organizations. The urban campus provides several amenities and acts as a central hub for the Jewish community in Palo Alto, creating an urban feel for the senior citizens who reside on the site. Community events, Jewish festivals, art exhibitions, and educational programs are held on the campus, contributing to a rich and diverse cultural environment in Palo Alto. Moldaw Family Residences on the Campus is a senior living and retirement facility located on the Taube Koret Campus for Jewish Life. The community was established in 2009, and features 193 living units. In addition to housing, the facility also offers independent living, assisted living, and memory care. Oshman Family Jewish Community Center The Oshman Family Jewish Community Center, commonly known as the Oshman Family JCC, is a prominent community center that resides on the Taube Koret Campus for Jewish Life. It serves as a core center for Jewish heritage, cultural events, and Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 138  Packet Pg. 145 of 389  136 Existing Conditions Report | Education, Culture, and History education, and offers a wide range of services and programs for people of all ages. The center is dedicated to creating a welcoming and inclusive environment for everyone in the Palo Alto community, offering numerous amenities such as a fitness center, indoor/ outdoor pools, education centers and childcare services. From 1999 to 2002, as school enrollments were on the rise, the JCC had to reassess its location and ultimately relocated to the Cubberley/Greendell campus. During this period, the idea of creating a multi-generational campus with senior residences emerged, leading to the successful $140 million Capital Campaign to build the Taube Koret Campus for Jewish Life (TKCJL) on the former Sun Microsystems headquarters site in Palo Alto. Construction began in 2007, and completed in 2009. Parks and Facilities Palo Alto is a vibrant community known for its greenscapes and abundance of trees throughout the city, a nod to the Stanford Tree, the official mascot of Stanford University. Parks and open spaces are nestled throughout the urban landscape, inviting families, youth, and residents to walk, exercise, and play. There are several public parks and facilities within proximity or around the site, including: • Cubberley Community Center (0.2mi from project site) • Mitchell Park (1 mile from project site) • Mitchell Park Branch Library • Mitchell Park Community Center Mitchell Park is the largest public park in Palo Alto, boasting 21.4 acres of amenities, including youth soccer fields, sevenw tennis courts, walking and biking paths, public art, and picnic areas. It is close to Fairmeadow Elementary School and Jane Lathrop Stanford Middle School, fostering a sense of community engagement and provides student access to outdoor activities and resources. The library is also a core pillar of education, featuring over 140,000 items with books in different languages, conference rooms, meeting and study spaces, and state-of-the-art technology to promote lifelong learning and access to information. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 139  Packet Pg. 146 of 389  137 Existing Conditions Report | Education, Culture, and History History Prehistory The original inhabitants of the lands later known as Palo Alto, were a group of indigenous peoples called the Ohlone. The Ohlone thrived in this area thanks to its temperate climate and abundant natural resources. They enjoyed a high quality of life, making use of the bay and marshes to harvest shellfish and fowl, while the valley floor offered small game and acorns from the countless oak trees. Nearby waterways, including San Francisquito Creek, provided fish and a variety of fruits and berries along the streambanks. In the foothills, larger game like deer and grizzly bears could be hunted. Post-Contact History The transition from prehistory to recorded history occurred with the expedition of Don Gaspar de Portola in 1769. His exploration of the area marked the first documented encounter with this land. During his expedition, he and his men camped alongside El Palo Alto, which translates to “the tall stick,” a significant tree that remains a symbol for both Palo Alto and Stanford University to this day. This historical landmark serves as a tangible link to the area’s deep past, connecting the contemporary city and university to their ancient origins. New settlers were drawn to the region due to the enticing Spanish, and later Mexican, land grant opportunities. These land grants laid the foundation for what would become the city of Palo Alto. For instance, the Soto/Greer family established their residence on Rancho Rinconada del Arroyo de San Francisquito, which covered a substantial portion of present-day Old Palo Alto. Additional ranchos, like Rancho La Purisima Concepcion, acquired by Juana Briones during the mid-1840s, encompassed land that now constitutes a part of modern-day Palo Alto. Early Establishment Period After the tragic passing of their only son, Leland Stanford Junior, the grieving Stanfords decided to establish a university in his memory in 1884. In 1891, following several years of construction, Leland Stanford Junior University opened its doors to 465 students. This initiative attracted ambitious, economically disadvantaged students to the region. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 140  Packet Pg. 147 of 389  138 Existing Conditions Report | Education, Culture, and History Despite owning several substantial vineyards in California, the Stanfords aimed to limit university students’ access to alcohol. They also wanted a college town that would support the new university, and began looking at their options. Initially, they contacted Mayfield (and Menlo Park), with the condition of closing the town’s 13 saloons and lone brewery in exchange for increased business from incoming university students. However, Mayfield’s residents rejected the proposal, possibly due to uncertainties about the university’s success. As an alternative, the Stanfords, with the help of Timothy Hopkins, bought 700 acres of farmland north of Mayfield and eventually settled on the name “Palo Alto.” Palo Alto was a “dry town” where liquor sales were restricted. Within a few years, Palo Alto flourished. In 1894, the town’s residents were confident enough to incorporate, and city leaders took steps like establishing civic control over the water supply, a municipal gas system, and an electric power plant. Meanwhile, Mayfield remained a blue-collar town with a thriving alcohol industry. However, Stanford University’s establishment attracted newcomers to Palo Alto, and Mayfield faced a decline due to changing demographics. In the early 20th century, Mayfield shut down its saloons, but it couldn’t rival Palo Alto’s growth and success. In 1925, Mayfield residents voted to merge with Palo Alto, and as a result, Mayfield ceased to exist, with its downtown area renamed as California Avenue. Modern History Red Lining Palo Alto experienced significant population growth in the early 20th century, expanding from around 1,500 residents in 1900 to 6,000 by 1920. However, during this period, the town implemented discriminatory practices against Black and Asian populations. The Chamber of Commerce passed a resolution aiming to segregate incoming minority residents into a specific district. Realtors in the area implemented these policies using techniques like block-busting, white-only deed restrictions, and refusing to insure mortgages in non-white neighborhoods. These actions pushed minority buyers into East Palo Alto, which was incorporated as a city in 1983 and initially had a 60% Black population, in stark contrast to Palo Alto’s 2.3% Black population. While East Palo Alto’s racial makeup has shifted towards a predominantly Hispanic or Latinx population, the legacy of racial discrimination through segregational real estate practices and unequal housing opportunities persists, reflecting the ongoing impact of redlining in Palo Alto. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 141  Packet Pg. 148 of 389  139 Existing Conditions Report | Education, Culture, and History 20th Century Economic Growth In the early 20th century, both Stanford University and Palo Alto experienced significant growth. The town’s expansion included the extension of the streetcar line along University Avenue, stretching to Oregon Avenue south of Embarcadero Road. Despite the economic challenges of the 1930s, the town fared relatively well, thanks in part to the presence of the university. Professors and staff continued their teaching and research, supporting local businesses with their modest incomes. Lucie Stern, an heiress to the Levi Strauss fortune, played a significant role in funding various community projects, such as the Community Theatre, Children’s Theatre, Children’s Library, and the Sea Scout Building before World War II. During this time, Palo Alto solidified its position as a hub for science and technology as graduates of Stanford University began developing their own companies. For instance, William Hewlett and David Packard graduated with degrees in electrical engineering from Stanford University in 1935 and subsequently founded the company Hewlett-Packard, more commonly known as HP. The company was began in a one- car garage near Stanford. During this time, they developed their first successful HP computer products, which laid the foundation for Silicon Valley, the world’s first high- technology region. Other ventures in Palo Alto have contributed significantly to the development of technology, including the Federal Telegraph Company’s research in radio communications and television and Varian Medical Systems’ contributions to radiosurgery and x-ray tube technology. Following World War II, Stanford University faced financial challenges. However, with a significant land endowment at their disposal, Frederick Terman, who served as both the Provost of Stanford University and the Dean of Engineering, proposed the concept of establishing a research and development-focused business park to the City of Palo Alto. Terman, known for his encouragement of students to launch their electronics companies in the region, aimed to retain talent within California. This visionary park was designed not only to provide income for the university but also to bolster the local tax revenue. In collaboration with the City of Palo Alto, Stanford University officially established the Stanford Research Park (SRP) in 1951. The SRP contained over 150 businesses, including Hewlett-Packard, Tesla Motors, TIBCO, and VMware, it has historically been home to notable enterprises like Steve Jobs’s NeXT Computer, Xerox PARC, and Facebook. The Stanford Research Park was a driving force in Silicon Valley and the very heart of the tech hub. Despite the many major companies popping up throughout the city, Palo Alto’s early economy was not made up entirely of tech companies. The Stanford Shopping Center, along with the relocation of the Stanford Medical Center from San Francisco in 1959, served as pivotal drivers of economic expansion for Palo Alto. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 142  Packet Pg. 149 of 389  140 Existing Conditions Report | Education, Culture, and History Thousands of new homes were built to accommodate the growing population, which more than doubled from 25,000 to 55,000 by 1960. Despite the ongoing challenges of accommodating a rapidly expanding population and numerous businesses, Palo Alto continues to thrive in the heart of Silicon Valley. Fairchild Semiconductor Another notable tech company that established itself in Palo Alto was Fairchild Semiconductor, circa 1957. Fairchild invented one of the first commercially producible integrated circuits. They capitalized on the national urgency to advance aerospace electronics, leading to the rapid development and acceptance of a new kind of silicon transistor. This venture outfitted an R&D facility in Palo Alto, where they developed new processes and equipment. Palo Alto became a key location for their innovation efforts, and Fairchild’s rapid growth in revenue and impact on the local community can be compared to that of Google 40 years later. The founding of Fairchild Semiconductor and other prominent tech companies helped established the site as the birthplace of innovation that has shaped modern technology and propelled Silicon Valley into a global tech hub. Historic Context: Site Zoning The project site’s historical landscape differs significantly from the industrial buildings and office parks we see today. Originally, the San Antonio corridor area was zoned for residential use, with sparse development and lots of open space. However, the transformation began in 1951, when the Palo Alto City Council decided to establish Interim Zoning Regulations in the San Antonio Road Annexation. Subsequently, on March 10, 1952, the Council approved an amendment to Ordinance No. 1320. This amendment changed the zoning from “R-3” to “M-1” (light industrial) and “L-M-S” to “M-2” (commercial, manufacturing, and industrial) in the area northeast of Charleston Road and San Antonio Road. This shift essentially converted the region from undeveloped residential into Palo-Alto’s hub of light industrial activity. In November 2006, 901 San Antonio Ave underwent a significant zoning change, transitioning from a General Manufacturing District (GM) to a Planned Community (PC) to accommodate the Jewish Community Center project. By 2007, a series of zoning transitions occurred in and around the project site, converting areas from Medium and High-Density Multiple-Family Residence Districts to Service Commercial and Neighborhood Commercial zones. It appears that the city authorities recognized an opportunity for improved economic sustainability by permitting increased industrial activity within the region. Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 143  Packet Pg. 150 of 389  17 5 0 18 0 0 18 5 0 19 0 0 19 5 0 20 0 0 Mu w e k m a O h l o n e T r i b e Do n G a s p a r d e P o r t o l a ex p l o r e d t h e a r e a i n 17 6 9 St a n f o r d U n i v e r i s t y 1 8 9 1 Ma y fi e l d m e r g e s w i t h Pa l o A l t o i n 1 9 2 5 HP F o u n d e d 1 9 3 9 St a n f o r d R e s e a r c h P a r k 1 9 5 1 Fa i r c h i l d S e m i c o n d u c t o r 19 5 7 18 4 0 s R a n c h o s P e r i o d JC C 2 0 0 9 Fi g u r e 5 : T i m e l i n e o f I m p o r t a n t Ev e n t s i n P a l o A l t o ’ s H i s t o r y Fi g u r e 5 - T i m e l i n e o f i m p o r t a n t e v e n t s i n P a l o A l t o ’ s h i s t o r y Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 144  Packet Pg. 151 of 389  142 Existing Conditions Report | Education, Culture, and History Sources (n.d.). Palo Alto History. Org. Retrieved December 4, 2023, from https://www. paloaltohistory.org/ (n.d.). Mountain View Los Altos Union High School District - Home. Retrieved December 4, 2023, from https://www.mvla.net/ \/. (2023, June 16). YouTube. Retrieved December 4, 2023, from https://dq.cde.ca.gov/ dataquest/dqcensus/EnrCharterYears.aspx?cds=4369518&agglevel=district&ye ar=2022-23&ro=y Baker, N., & Schmidt, J. (2023, April 10). Palo Alto: The city that’s helped define America, capitalism and the world. ABC. Retrieved December 4, 2023, from https://www.abc.net.au/news/2023-04-11/the-history-of-palo-alto/102185864 Canada College. (n.d.). Cañada College. Retrieved December 4, 2023, from https:// canadacollege.edu/ Chapter 18.20 OFFICE, RESEARCH, AND MANUFACTURING (MOR, ROLM, RP and GM) DISTRICTS. (n.d.). American Legal Publishing. Retrieved December 4, 2023, from https://codelibrary.amlegal.com/ codes/paloalto/latest/paloalto_ca/0-0-0-78729 The City of East Palo Alto. (n.d.). History of East Palo Alto. City of East Palo Alto. Retrieved December 4, 2023, from https://www.cityofepa.org/community/page/ history-east-palo-alto The City of Palo Alto. (2022, February 28). History of Palo Alto – City of Palo Alto, CA. City of Palo Alto. Retrieved December 4, 2023, from https://www.cityofpaloalto. org/Departments/Planning-Development-Services/Historic-Preservation/ History-of-Palo-Alto The City of Palo Alto. (2023, June 16). \/. YouTube. Retrieved December 4, 2023, from https://www.cityofpaloalto.org/files/assets/public/v/2/planning-amp- development-services/file-migration/current-planning/forms-and-guidelines/ zone-map-2021.pdf The City of Palo Alto. (2023, June 16). \/. YouTube. Retrieved December 4, 2023, from https://www.cityofpaloalto.org/files/assets/public/v/1/city-clerk/ordinances/ ordinance-master-lists/1951-1960-ordinance-master-list.pdf Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 145  Packet Pg. 152 of 389  143 Existing Conditions Report | Education, Culture, and History Fairmeadow Elementary. (n.d.). 2021-2022 School Accountability Report Card. Fairmeadow Elementary. Retrieved December 4, 2023, from https://resources. finalsite.net/images/v1692229989/pausdorg/xznyxwkgrhnehlssz3tj/2022_School_ Accountability_Report_Card_Fairmeadow_Elementary_School_230717.pdf Gebel, M. (2019, September 26). What Silicon Valley Looked Like During Early Days of Tech Boom: PHOTOS. Business Insider. Retrieved December 4, 2023, from https://www.businessinsider.com/silicon-valley-during-early-days-of-tech- boom-photos-2019-5#in-1968-former-fairchild-semiconductor-employees- gordon-moore-and-robert-noyce-left-new-york-for-santa-clara-california-to- start-intel-at-the-time-the-company-was-f Grimes, B., & Chen, J. (2023, May 26). Elective teachers concerned about PAUSD enrollment dropping. The Paly Voice. Retrieved December 4, 2023, from https:// palyvoice.com/172763/features/elective-teachers-concerned-about-pausd- enrollment-dropping/ Hall, M. (2023, December 1). Sun Microsystems, Inc. | American Tech Company, Computer Systems & Software. Britannica. Retrieved December 4, 2023, from https://www.britannica.com/topic/Sun-Microsystems-Inc Henry M. Gunn High School. (2022, March 1). 2021-2022 School Accountability Report Card. Henry M. Gunn High School. Retrieved December 4, 2023, from https://resources.finalsite.net/images/v1687308409/pausdorg/ zbch4mvrgkuabkfdqelx/2022_School_Accountability_Report_Card_Henry_M_ Gunn_High_School_20230608.pdf Laws, D. (2017, September 19). Fairchild Semiconductor: The 60th Anniversary of a Silicon Valley Legend - CHM. Computer History Museum. Retrieved December 4, 2023, from https://computerhistory.org/blog/fairchild-semiconductor-the-60th- anniversary-of-a-silicon-valley-legend/ Los Alto School District. (n.d.). Our Schools. Los Altos School District. Retrieved December 4, 2023, from https://www.lasdschools.org/District/Portal/our-schools Muña, E., Henderson, J., & Huang, M. (2022, February 8). February 8, 2022: The Asian and Pacific Islander Population in the Bay Area is Large and Diverse and is Fueling Growth in the Region. Bay Area Equity Atlas. Retrieved December 4, 2023, from https://bayareaequityatlas.org/BayArea-API-diversity Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 146  Packet Pg. 153 of 389  144 Existing Conditions Report | Education, Culture, and History Palo Alto History. (n.d.). Palo Alto History. Retrieved December 4, 2023, from https:// www.paloaltohistory.org/discrimination-in-palo-alto.php Palo Alto’s history of redlining – The Campanile. (2020, October 12). The Campanile. Retrieved December 4, 2023, from https://thecampanile.org/22686/ uncategorized/palo-altos-history-of-redlining/ Palo Alto Unified School District. (n.d.). Palo Alto Unified School District: Home. Retrieved December 4, 2023, from https://www.pausd.org/ Palo Alto Unified School District. (2019, April 15). Palo Alto Unified School District and Stanford reach conditional agreement on community benefits | Stanford News. Stanford News. Retrieved December 4, 2023, from https://news.stanford. edu/2019/04/15/palo-alto-unified-school-district-stanford-reach-conditional- agreement-community-benefits/ Russo, C. (2020, June 28). Un-forgetting the segregationist history of Palo Alto (and Daly City, and San Francisco, and…). | Palo Alto Online |. Retrieved December 4, 2023, from https://paloaltoonline.com/news/2020/06/28/un-forgetting-the- segregationist-history-of-palo-alto-and-daly-city-and-san-francisco-and Takei, G., Eisenger, J., & Scott, S. (n.d.). 2021-2022 School Accountability Report Card. Jane Lathrop Stanford (JLS) Middle School. Retrieved December 4, 2023, from https://resources.finalsite.net/images/v1692229989/pausdorg/ dv3vwv643vedm3q8k5mi/2022_School_Accountability_Report_Card_Jane_ Lathrop_Stanford_Middle_School_230717.pdf Item 4 Attachment A - Existing Conditions Report        Item 4: Staff Report Pg. 147  Packet Pg. 154 of 389  City of Palo Alto, San Antonio Road Corridor Concept Plan Alternatives Report Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 148  Packet Pg. 155 of 389  2 Table of Contents Introduction .................................................................................................................................................................................. 3 Land Use Alternatives ............................................................................................................................................................... 6 Alternative 1............................................................................................................................................................................. 6 Alternative 2............................................................................................................................................................................. 9 Alternative 3.......................................................................................................................................................................... 11 Transportation Alternatives ............................................................................................................................................... 13 Alma Stret to Middlefield Road ..................................................................................................................................... 15 Middlefield Road to East Charleston Road .............................................................................................................. 19 East Charleston Road to Terminal Boulevard ........................................................................................................ 24 Alternatives Evaluation......................................................................................................................................................... 28 Land Use.................................................................................................................................................................................. 28 Transportation ..................................................................................................................................................................... 30 Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 149  Packet Pg. 156 of 389  3 Introduction The City of Palo Alto must plan for creating 6,086 dwellings in the next eight years to fulfill its Regional Housing Needs Allocation. The City’s plan encompasses a range of strategies. These include easing density restrictions in existing multifamily districts, exploring construction on city-owned parking lots, collaborating with Stanford on housing developments, and encouraging accessory dwelling units. The City has also identified a strategy to rezone manufacturing and light-industrial zones around San Antonio Road and Fabian Way to facilitate the redevelopment of existing commercial buildings with 1,185 housing units. Along with the facilitation new housing units, the City is seeking to improve current transportation conditions around San Antonio Road and Fabian Way by connecting varied land uses and promoting multi-modal access. The San Antonio Road Corridor, spanning approximately 260 acres, is situated at the easternmost edge of Palo Alto, bordering Mountain View. It is located close to major technology companies in Silicon Valley, such as Google, Facebook, and Apple, and has fueled significant residential and commercial development. Accessibility through major highways, including Highway 101 and El Camino Real, further positions the corridor as a vital link to neighboring cities, airports, and the broader Bay Area. The corridor centers San Antonio Road, one of Palo Alto’s main arterial road that connects Highway 101 to SR 82, making it a high-volume traffic and trucking route through the city. Other arterial roads within the project boundary also support heavy traffic traveling through and along the corridor. Alma Street was the most traveled arterial road, with 28,895 vehicles total along the section between East Charleston Road. The project is in close proximity to the San Antonio Caltrain Station which connects people to employment centers and leisure activities in surrounding cities. There are several bus routes serving the corridor including the VTA Route 21, VTA Route 40, and the ACE Orange Shuttle. Despite these public transportation services, ridership is substantially low citywide and was further exacerbated by the COVID -19 pandemic. Bicycle and pedestrian facilities are minimal with a lack of bike lanes and sidewalks throughout the corridor. The project boundary for San Antonio has multiple land use designations. Research/Office/Limited Manufacturing (ROLM) and General Manufacturing (GM) zones constitute 57 percent of the project area, primarily in the north half. ROLM zones permit specific office, research, and manufacturing activities within a park setting, aiming for larger spaces with access to natural light and air. The ROLM district targets areas designated for research and office park use in the Palo Alto Comprehensive Plan. Residential zones, constituting 15 percent of the project area, are concentrated in the southern half, south of East Charleston Road. Single Family Residential (R -1) aims to establish standalone homes with an emphasis on natural surroundings and open spaces. The various zones allow for Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 150  Packet Pg. 157 of 389  4 accessory dwelling units, junior accessory dwelling units, and accessory structures or buildings. Two-Family Residential (R-2) permits a second dwelling unit, with regulations in place to maintain the single-family character. Low-Density Multiple-Family Residential (RM-20) acts as a transitional zone, while Medium-Density Multiple-Family Residential (RM-30) aims to create neighborhoods for multiple-family housing. The City envisions transitioning the San Antonio Corridor from industrial land uses to create new housing opportunities with improved transportation conditions. Comprehensive planning is deemed essential to ensure future residents have access to necessary amenities and services, fostering the development of a new residential neighborhood. This includes identifying gaps, such as the need for parks, safer bicycle and pedestrian facilities, and access to neighborhood schools. The City's recently adopted Sustainability goals empower the integration of land use and transportation planning, with the overarching objective of expanding a city segment while concurrently reducing Vehicle Miles Traveled (VMT). This ambitious undertaking reflects the city's commitment to sustainable and well-planned urban development. Project Area Hazards Students produced an Existing Conditions Report for the project area to understand the strengths and weaknesses that already exist along the corridor. Environmental concerns proved to be a key weakness. The San Antonio Corridor has seven relevant environmental hazard scenarios that were considered in the land use alternative evaluation. Development alternatives were impacted by FEMA flood zone AE (100-year flood), high liquefaction susceptibility level, hazardous material sites with land use restrictions, sea level rise scenarios for 24 inches and 55 inches, and noise contours at 65 dBA and 70 dBA. The environmental hazard map , depicted in Figure 1, identifies a hazard value from zero to eight for each parcel calculated based on the number and severity of hazards on the parcel. The lower risk hazards, SLR 55 inches, and noise 65 dBA were given one point, and all higher risk hazards were given two points with total values expressing the relative environmental hazard risk. Flooding, sea level rise, and liquefac tion are concentrated on the northern end of the site closest to the San Francisco Bay. Relevant noise contours are adjacent to Highway 101. Due to these identified hazards, all land use alternatives in this document try to minimize the number of homes and residents in hazard-prone areas. It is not uncommon for buildings to be constructed along a highway or in a sea-level rise risk area, but avoiding this could avoid major challenges in the future. Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 151  Packet Pg. 158 of 389  5 Figure 1: Environmental Hazard Map Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 152  Packet Pg. 159 of 389  6 Land Use Alternatives The land use alternatives include a baseline with no-change scenario, a 1,200-unit scenario, and a 2,000-unit scenario. The 1,200-unit alternative addresses the 1,185 units that the City identified in their strategy to rezone manufacturing and light-industrial zones around San Antonio Road and Fabian Way to facilitate redevelopment. The 2,000-unit alternative accommodates more units with relatively little change to the proposed land use and zoning changes. The City has 6,086 units to accommodate so increasing housing beyond the 1,185 units may be useful for the City goals. Alternative 1 Alternative 1 serves as a baseline scenario in alignment with the current 2030 Comprehensive Plan. It represents a no-change scenario, wherein no proposed density adjustments or alterations to existing land use designations (as indicated in Table 1) are considered. The current land use designations, illustrated in Figure 2, remain unchanged in this scenario. It is assumed in Alternative 1 that all ongoing pipeline projects will be executed as planned. Table 1 - Description of Land Use Designations Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 153  Packet Pg. 160 of 389  7 Land Use Designations Allowed Density/FA R Single-Family Residential Residential neighborhoods are characterized by detached single-family homes, typically with one dwelling unit on each lot. 1-7 du/ac 1-14 du/ac* Multi-Family Residential Residential neighborhoods are characterized by three or more dwelling units, which may be in the same building or separate buildings on the same site. 8-40 du/ac 8-90 du/ac Mixed-Use It is intended to promote pedestrian-oriented places that layer compatible land uses, public amenities, and utilities together at various scales and intensities. 1.15 FAR Service Commercial Facilities providing citywide and regional services and relying on customers arriving by car. Typical uses include auto services and dealerships, motels, lumberyards, appliance stores, and restaurants, including fast service types. 0.4 FAR Neighborhood Commercial Includes shopping centers with off-street parking or a cluster of street-front stores that serve the immediate neighborhood. Typical uses include supermarkets, bakeries, drugstores, variety stores, barber shops, restaurants, self-serve laundries, dry cleaners, and hardware stores. 0.4 FAR Light Industrial Wholesale and storage warehouses and the manufacturing, processing, repairing, and packaging of goods. 0.5 FAR Research/ Office Park Office, research, and manufacturing establishments whose operations are buffered from adjacent residential uses. 0.3-0.5 FAR *On parcels where second units or duplexes occur Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 154  Packet Pg. 161 of 389  8 Figure 2: Existing Land Use Designations Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 155  Packet Pg. 162 of 389  9 Alternative 2 Alternative 2 aims to achieve an additional 1,200 housing units in the San Antonio Road corridor. This plan incorporates a significant increase in mixed-use and multi-family development. The alternative proposes land use changes from light industrial to mixed-use, service commercial to mixed-use, light industrial to multi-family, and service commercial to multifamily. The alternative includes an additional 840 units of mixed-use housing (24 dwelling units per acre) and 442 units of multi-family housing (50 dwelling units per acre), as depicted in Figure 3. This alternative responds to the growing demand for diverse housing options and urban amenities. The proposed land use changes, such as transforming areas from light industrial to mixed-use and service commercial to multi-family, signal a shift towards a more vibrant and integrated community. The solution optimizes land utilization and creates a more sustainable, walkable, and socially connected urban environment. By diversifying housing types an d promoting medium-density development, Alternative 2 envisions a corridor that not only accommodates increased housing demand but also establishes a resilient and dynamic community. Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 156  Packet Pg. 163 of 389  10 Figure 3: 1,200 Housing Unit Scenario Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 157  Packet Pg. 164 of 389  11 Alternative 3 Alternative 3 is geared toward adding 2,000 dwelling units with an emphasis on workforce housing. This alternative proposes adding 1,575 units as mixed-use (38 dwelling units per acre) and adding 427 units as multi-family (77 dwelling units per acre), as depicted in Figure 4. Like Alternative 2, this alternative also proposes changing the land used in several areas. All Service Commercial and Neighborhood Commercial land uses would be changed to Mixed -Use. About half of all the Light Industrial land uses in the project area will also be changed to Mixed-Use with a small portion solely being Multi-Family. Alternative 3 would help provide a portion of the workforce housing that Google and other companies need in this area. Google employs more than 34,000 people in the Bay Area alone. 20,000 of those employees work in Mountain View, with 1,000 more working in Palo Alto. To minimize employee commute times, Google envisions the construction of approximately 13,000 housing units across the South Bay Area. Palo Alto and the San Antonio Road Corridor can be a focal point for the needed workforce housing along with the overall need for more housing throughout the Bay Area and the state. Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 158  Packet Pg. 165 of 389  12 Figure 4: 2,000 Housing Unit Scenario Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 159  Packet Pg. 166 of 389  13 Transportation Alternatives The San Antonio Road Corridor is encompassed by Terminal Boulevard to the north and Alma Street to the south and includes Fabian Way. Transportation on the corridor primarily consists of vehicular traffic and trucking with Class-II and Class -III bike lanes and sidewalks throughout. With a projected increase in housing in the corridor, the current infrastructure is not sufficient to maintain a potentially high volume of vehicle and pedestrian traffic. Safety for pedestrians and bicyclists using San Antonio Road is at risk with trucking and other traffic and a lack of bike lanes. In addition, access to the nearby Google campus and the Baylands is disconnected from the project area with few connections across US 101. To discuss transportation alternatives, the San Antonio Road Corridor is broken into three sections - Alma Street to Middlefield Road, Middlefield Road to East Charleston Road, and East Charleston Road to Terminal Boulevard. These sections are further divided into three types of alternatives - existing conditions, a low-cost alternative, and a high-cost alternative. The existing conditions alternative reflects the corridor as it exists today without any changes, while the other two scenarios imagine different facilities stratified by estimated cost. These three alternatives give the City the flexibility to choose pedestrian and bicycle improvements based on anticipated need and available resources. In some cases, the existing conditions or low-cost alternative will meet the City’s goals for the corridor, while in others the high-cost alternative may be more appropriate. The City may also benefit from different alternatives when seeking funding to implement corridor safety improvements. All transportation alternatives are illustrated in a map of the San Antonio Road Corridor (Figure 5). However, because of the large scale of the project site, it is difficult to see all the alternatives on one map. Therefore, dividing the corridor into three sections improves the readability of the illustrations, making it easier for people to conceptualize the proposed alternatives. Each of the three corridor sections presents three types of alternatives. Existing conditions are the alternative type where there are no changes made to the current street designs and intersections. The low - cost alternative is the more cost-effective option to implement. This can include the restriping of traffic lanes or adding street furniture. The high-cost alternative involves more expensive implementation measures such as repaving streets and safer bicycle lane buffers. Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 160  Packet Pg. 167 of 389  14 Figure 5: Transportation Alternatives Section Map Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 161  Packet Pg. 168 of 389  15 Alma Street to Middlefield Road Existing Conditions The existing portion of Alma Street to Middlefield Road. From the interchange heading northbound, two travel lanes extend towards the intersection with Middlefield Road, with merging lanes on and off the road. From Nita Avenue to the intersection, there are non - continuous sections of street parking available. San Antonio Road widens at the intersection to incorporate two turn lanes towards Middlefield Road. Traveling southbound, San Antonio Road consists of two travel lanes, with a third turning lane into B yron Street and Nita Avenue. South of Byron, the frontage road of San Antonio Avenue runs along the main Road. There is one vehicle underpass between the southernmost portion of San Antonio Road and the Alphabet office park. There is no bike infrastructure in this section. Pedestrian crossings exist at the intersection of San Antonio Road and Middlefield Road, and the intersection of Nita Avenue and San Antonio Road. Low-Cost Alternative This section of the San Antonio Road corridor extends from the crosswalk across Alma to the San Antonio Caltrain station to the intersection with Middlefield Road. Along the northbound side of San Antonio Avenue, a two-lane cycle track will run alongside the median between the Avenue and Road. The cycle track will have a total width of eleven feet and will be protected by flexible bollards. The intent of having a northbound cycle track is to reduce conflict points with cyclists and vehicles moving in and out of their driveways. At the point where San Antonio Avenue ends, at the intersection with Byron Street, the cycle track will continue along the turn lane with further bollard protection. Figure 6 depicts the low-cost street section. Figure 6: Low-Cost alternative section, facing south. High-Cost Alternative Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 162  Packet Pg. 169 of 389  16 The high-cost alternative will retain the two-lane cycle track, with further protection provided from raised curbs and planters providing further protection. A second Class -II protected cycle lane along northbound San Antonio Road will provide an alternative for cyclists to access locations on the east side of the road. Another pedestrian improvement will be the addition of a midblock pedestrian crossing at the intersection of Ferne Avenue, San Antonio Avenue, and San Antonio Road (Figure 7). This crossing will ideally be signalized with a HAWK crossing. At the south end of San Antonio Avenue, at the intersection of Briarwood Way, some intersection redesigns would improve pedestrian and cyclist safety when crossing under San Antonio Road (Figure 8). The triangular buffer will be removed, allowing for the proposed cycle track to continue through the intersection. In doing this, the right-turn lane onto San Antonio Road will be removed, but the intersection will remain open to allow for appropriate turning. The Section 1 map provides an overview of the changes in the context of the corridor (Figure 9). Figure 7: High-Cost alternative section, facing south. Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 163  Packet Pg. 170 of 389  17 Figure 8: San Antonio Avenue and Briarwood Road intersection. Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 164  Packet Pg. 171 of 389  18 Figure 9: Section 1 overview Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 165  Packet Pg. 172 of 389  19 Middlefield Road to East Charleston Road Existing Conditions At the southern end of the section, there are five lanes at the intersection of Middlefield Road and San Antonio Road, with three turn lanes and two travel lanes. Between the intersections of Middlefield and East Charleston, San Antonio maintains two travel lanes in each direction. In addition, on-street parking is available along both sides. At the intersection of San Antonio Road and Leghorn Street, northbound and southbound San Antonio Road have four turn lanes. Bike infrastructure consists of a sharrow along each direction of travel. Pedestrian crossings are at the intersection of San Antonio Road and East Charleston, Leghorn, and Middlefield. In the northernmost part of San Antonio Road there is a single southbound lane for parking purposes that merges back onto the main right-of-way. Low-Cost Alternative The second section of the San Antonio Road corridor extends from Middlefield Road to East Charleston Road. This section is in between the corridor’s two major intersections and includes a street frontage designated for parking. The low -cost alternative for this section is to transform the current frontage that is dedicated to vehicular parking into a continuation of the bollard -separated cycle track presented in the previous section. The cycle track will provide Palo Alto cyclists with enhanced safety and comfort. At the same time, they travel up and down the corridor without major conflict with cars and trucks driving along San Antonio Road. In addition to the cycle track, the remaining frontage space will be converted into a parklet designed to attract pedestrians and vibrant street activities into the public space. With amenities such as outdoor seating spaces, plantings, and bicycle parking, the parklet will benefit surrounding businesses while also serving as a core community space for the San Antonio Road corridor. The pairing of the parklet and the cycle track creates an attractive and welcoming entrance into the corridor for pedestrians, cyclists, and drivers. See Figure 10 for an illustration of the low-cost street section. Figure 10: Low-Cost alternative, facing south. High-Cost Alternative Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 166  Packet Pg. 173 of 389  20 The high-cost alternative for this section will keep the same cycle track proposed as the low -cost alternative. However, concrete or vegetated buffers will replace the flexible bollards that separate the cycle track from vehicular traffic (Figure 11). This will increase user safety by providing a physical buffer that can stop most vehicles with a more visually appealing separation. A linear park will be constructed instead of a parklet in the remaining frontage area. The park will include a vegetated pathway and outdoor seating to encourage movement and relaxation. In addition, bioretention basins and low-impact development will be incorporated into the park design to address flooding and runoff concerns. With more people drawn to the park, the use of the cycle track as an alternative mode of transportation will be more successfully promoted. A protected bike lane going northbound on San Antonio Road is another proposal for this section. This bike lane provides an alternative to the two-lane cycle track along San Antonio Road so that cyclists will not have such difficulty biking to the surrounding area. The linear park will only extend to the end of the street frontage section to make use of the existing space there. However, the cycle track will continue along the entire section from Middlefield Road to East Charleston Road. The continuation of this track will replace the existing parking lane that is parallel to the traffic lanes. The existing parking lane transitions into a right-turn lane at the Middlefield Road intersection. For this proposal, the right turn lane will be designated for the cycle track and the traffic lane going straight will be converted into a right turn and straight lane (Figure 12). The proposed Middlefield Road intersection changes can be seen in the birds’ eye view map in Figure 13. The Section 2 map provides an overview of the changes in the context of the corridor (Figure 14). Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 167  Packet Pg. 174 of 389  21 Figure 11: High-Cost alternative, facing south. Figure 12: Street section of Middlefield Road facing north. Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 168  Packet Pg. 175 of 389  22 Figure 13: Middlefield Road and San Antonio Road intersection. Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 169  Packet Pg. 176 of 389  23 Figure 14: Section 2 overview. Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 170  Packet Pg. 177 of 389  24 East Charleston Road to Terminal Boulevard Existing Conditions Two travel lanes in either direction continue after the intersection of East Charleston and San Antonio Road. At the intersection, the southbound lane widens to incorporate three more turn lanes. Along the northbound lanes, there are merging lanes accessing and exiting the light industrial/office park area. San Antonio Road passes over Highway 101 with a partial cloverleaf interchange. There are low-quality pedestrian crossings across the interchange. At the north end of San Antonio lies the entrance to the Baylands Nature Preserve Trail. At Fabian Way, there are two travel lanes in the north and southbound directions. Four mid-block pedestrian crossings exist between East Charleston Road and East Meadow Drive. This portion of Fabian Way includes a Class-II bike lane in either direction. A multimodal pedestrian bicycle bridge crosses Highway 101 just outside of the project site. Low-Cost Alternative The third section of the San Antonio Road project area extends from East Charleston Road to Terminal Boulevard, which is the northernmost street before the Baylands. This section also includes Fabian Way and adjacent land area and extends to Industrial Avenue. The Low-Cost Alternative for this section continues the two-way cycle track presented for the other sections. At the San Antonio Road and East Charleston Road intersection, the cycle track will end and merge into the existing Class-II bike lanes on East Charleston Road. These bike lanes run in each direction of the road and off-site. The cycle track will then pick up on the west side of Fabian Way and continue to Federation Way. From there, the cycle track will move west toward Adobe Creek, where it will run on the existing pathway until reaching the pedestrian bridge that crosses West Bayshore Drive and US 101. This alternative proposes no bike lanes on San Antonio Road north of East Charleston Road. A benefit of this alternative is that it presents the option of revitalizing Adobe Creek to better incorporate the cycle track with other pedestrian-friendly elements. The existing bikeway is wide enough for pedestrians and has a bike-friendly infrastructure but lacks the aesthetics needed to entice people to use it. The cycle track would make use of the existing multi-modal bridge that connects to Adobe Creek Loop Trail, therefore not requiring additional expansion and saving funding for other uses. In addition, having the cycle track along Adobe Creek as opposed to along Fabian Way increases safety for cyclists by reducing interaction with vehicles. However, having the cycle track discontinued along East Charleston Road is a potential consequence. Cyclists would have to switch from cycle track to standard bike lane to cycle track to continue their ride, which poses some safety concerns when crossing a busy roadway. This alternative assumes that changes to building footprints and zoning proposed in the Land Use Alternative portion of this document are used. High-Cost Alternative Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 171  Packet Pg. 178 of 389  25 The high-cost alternative for this section proposes the same cycle track infrastructure that the low-cost alternative proposed. However, this two-way cycle track will be accompanied by another stretch of cycle track that branches off from East Charleston R oad, up Industrial Avenue, and connects directly to the Google campus across US 101 via a new pedestrian bridge. This pedestrian bridge will be multi-modal and allow for the cycle track and pedestrian right-of-way to be maintained. The cycle track will utilize part of Industrial Avenue through a development proposed in the Land Use Alternative portion of this document and will provide additional connections for new residents and businesses. Like the low cost, this cycle track increases cyclist safety by minimizing conflict with vehicles and provides a safe passage over the freeway. The construction of a new pedestrian bridge is what puts this alternative at a high cost and there must be communication with Caltrans. To make the cycle track and Class-II bike lanes function properly, the intersection of San Antonio Road and East Charleston Road must become a protected intersection. San Antonio Road, facing south at this intersection, will remove a left turn lane in favor of widening the sidewalk and parkway (Figure 15). This will allow all four corners to align straight, resulting in smoother travel for pedestrians and bicyclists. A protected intersection will provide safer crossing for bicyclists and pedestrians with enhanced pedestrian signals, curb extensions, and clear striping and signage. Protected intersections aim to slow down vehicle turns while increasing yield to pedestrians and bicyclists. In addition, curb extensions and corner islands reduce the distance for pedestrians to cross the road. The cycle track will have its cross button and entrance that seamlessly merges with the standard East Charleston Road bike lanes, allowing for easy travel throughout the corridor. San Antonio Road is a trucking road, so this protected intersection would make it difficult for potentially large trucks and buses to make turns in the minimal space provided. Figure 16 depicts the proposed protected intersection. The Section 3 map provides an overview of the changes in the context of the corridor (Figure 17). Figure 15: Low-Cost alternative, facing north. Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 172  Packet Pg. 179 of 389  26 Figure 16: East Charleston Road and San Antonio Road intersection. Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 173  Packet Pg. 180 of 389  27 Figure 17: Section 3 overview. Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 174  Packet Pg. 181 of 389  28 Alternatives Evaluation This studio used ArcGIS Urban to compute a series of comparable metrics related to housing, land use, and the environment. These metrics are meant to help provide an easy means of comparison between the different land use alternatives. The transportation alternatives are compared through cost estimates for the proposed infrastructure. Land Use Table 2: Land Use Metrics METRIC EXISTING CONDITIONS ALTERNATIVE #1 (1200 UNITS) ALTERNVATIVE #2 (2000 UNITS) Population 9,578 10,589 10,667 Energy Use 4.64M kWh/d 4.63M kWh/d 4.63M kWh/d CO2 Emissions 4.64M lb./d 3.31M lb./d 3.31M lb./d Wastewater 3.09 gal/d 3.19M gal/d 3.19M gal/d Daily Trips 1.35M/d 1.44M/d 1.43M/d Daily Trips Daily trips measure the number of motor vehicle trips based on a 24-hour basis. The daily trip calculation was estimated based on the equation daily trips=(net space area x trips per area) + (population x daily trips per person) + (households x daily trips per household) + (jobs x daily trips per job). There was a .10M/d trip increase between the existing conditions and the first alternative due to an increase in population and households. There is a minimal difference between alternative 1 and alternative 2; however, there is are a .01M/d decrease in daily trips in the second alternative because of the decrease in jobs in the area. The transportation analysis reveals an increase in daily trips from existing conditions to the proposed alternatives, which is driven by population household growth, and employment. Population The population metric calculates the holding capacity for the project area. The population metrics for the different alternatives were determined using the net land use area and a square- foot per person factor. The net land use area refers to the total area of the site. The difference between the three alternatives is determined by the change in net land use area. The area per person for residential multi-family is 405 sq ft. The more multi-family residential units there are, the smaller the net area per person, leading to a larger population. For instance, the 2,000-unit alternative has more multi-family units compared to the 1,200-unit and existing conditions alternatives, resulting in a larger population for the 2,000-unit alternative. CO2 Emissions Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 175  Packet Pg. 182 of 389  29 Carbon dioxide emissions measure the amount of carbon dioxide generated in pounds per day by the jobs and population in the project area. CO2 emissions are calculated based on the combined population and jobs emissions. Jobs are multiplied by emissions per job and population is multiplied by emissions per person. The existing conditions generate 1.33 M lb./d more CO2 emissions than the two proposed alternatives. In both alternatives the number of jobs on site decreases and the population increases with the transition of commercial and light industrial land uses to housing. The decrease in job related CO2 emissions is greater than the increase in population related CO2 emissions therefore the total CO2 emissions for the alternatives is lower than the existing conditions. The two alternatives have the same CO2 emission generation estimates based on rounding despite differences in the jobs and population calculations for each alternative. Energy Use Energy use is measured in kilowatt hours per day based on jobs and population for the project area. The energy use total is calculated based on the combined population and jobs energy use. Jobs are multiplied by energy use per job and population is multiplied by energy use per person. Each job type has a different energy use. The existing conditions use 0.1 M kWh/d more energy than the two proposed alternatives. In the proposed alternatives there is an increase in population and a decrease in jobs because of the proposed land use changes. There is an increase in housing and decrease in commercial and light industrial land use in both alternatives. The total energy use decreases in the alternatives because the decrease in job related energy use is greater than the increase in population related energy use. The two alternatives have the same total energy use estimates based on rounding despite differences in the jobs and population calculations for each alternative. Wastewater The wastewater metric measures the amount of waste produced per day by the and jobs in the area. For each of the three land use alternatives the amount of wastewater produced was calculated to understand the impact of each scenario. This metric used the following calculations to determine wastewater produced: population multiplied by wastewater per person, plus jobs multiplied by wastewater per job. Different job types have different wastewater production factors. Alternative 1 and alternative 2 both produce .010 gal/d more than the existing conditions scenario. In the proposed alternatives there is an increase in the number of housing units. Alternative 1 adds 1,200 housing units and alternative 2 adds 2,000 housing units. This increase in the number of housing units results in a small increase in the amount of wastewater produced. Alternative 1 and alternative 2 produce the same amount of wastewater per day at 3.19M gal/d and the existing conditions produce 3.09 gal/d. Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 176  Packet Pg. 183 of 389  30 Transportation Table 3: Transportation Cost Metrics METRIC LOW-COST HIGH-COST Cycle Track $1,136,520 $9,905,280 Pedestrian Bridge - $26,000,000 HAWK Signals - $116,000 Protected Intersection - $650,000 Linear Park - $860,000 Street Restriping $58,000 $58,000 Total $1,194,520 $37,589,280 Low-cost The Cycle Track cost valuation was gathered using the costs of the San Pablo Bicycle and Pedestrian Corridor study. The high-cost and low-cost estimates were generated based on the cost per foot. The low-cost estimate of the cycle track will be $123 per foot for 1.75 miles. The low cost consists of installing bollards as a measure of dividing the street from the cycle track. High-cost The Cycle Track cost valuation was gathered using the costs of the San Pablo Bicycle and Pedestrian Corridor study. The high-cost and low-cost estimates were generated based on the cost per foot. The high-cost estimate is considered to be $1,072 per linear foot which includes a curb-separated cycle track stretching 1.75 miles. The pedestrian bridge estimate reflects the cost of the Highway 101 Pedestrian & Bike Bridge Project that was completed in 2021. That cost was $22.8 million. Assuming the same bridge design and construction methods are used, the cost of the new bridge, adjusted for inflation, is $26 million. HAWK signals cost an average of $58,000 per unit, according to the Federal Highway Administration, bringing its total cost to $116,000. The $650,000 cost of the protected intersection construction is based on estimates listed in the 2020 Berkeley Pedestrian Plan. In addition, the cost to construct a linear park is roughly $50 per square foot. This estimates the approximately 17,200 square foot linear park to cost $860,000. Item 4 Attachment B - Alternatives Report        Item 4: Staff Report Pg. 177  Packet Pg. 184 of 389  Community Outreach Summary 1/24 City of Palo Alto San Antonio Road Corridor Plan Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 178  Packet Pg. 185 of 389  Introduction Activity 1: Mad-Libs Visioning Activity 2: Lego Mapping Key Findings Appendix 10 16 4 17 Table of Contents 3 Community Outreach Summary Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 179  Packet Pg. 186 of 389  3 Community Outreach Summary Introduction Students from the Cal Poly, San Luis Obispo’s City and Regional Planning Department are working in collaboration with the City of Palo Alto to develop a concept report for the San Antonio Road corridor, from the Baylands to Alma Street. The goal of the report is to detail how the area can accommodate 1,185 new homes to help the City achieve its housing goals. As a part of this effort, Cal Poly students will be hosting community outreach events. These events serve as opportunities for the community to provide feedback about the project. On the evening of January 24th, 2024, Cal Poly students led a community workshop at the Mitchell Park Community Center. The purpose of the workshop was to engage the community in a shared visioning process for the corridor and understand community attitudes toward growth and development in the area. This report serves as both a summary of community engagement and a catalog of all recorded input provided by participants. This report serves as a concise overview of our second outreach initiative held in January 2024. It encapsulates the engaging activities, such as Mad-Libs Visioning and Lego Scenarios, carried out during our community workshop in Palo Alto and the San Antonio Road Corridor. Figure 1: Community members and Cal Poly students listening to the workshop presentation Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 180  Packet Pg. 187 of 389  4 Community Outreach Summary Ac tivity #1: Ma d-L ib s Activity #1: Mad-Libs Visioning The Mad-Libs Visioning activity challenged participants to create a vision statement for WKHIXWXUHRIWKH6DQ$QWRQLR5RDG&RUULGRU0DG/LEVDUHˋOOLQWKHEODQNZRUGJDPH where players are prompted to provide a list of words to substitute for blanks in a story before reading aloud. )RUPLQXWHVSDUWLFLSDQWVDWHDFKRIWKHQLQHWDEOHVFROODERUDWHGWRˋOOLQWKHHPSW\ VSDFHVZLWKZRUGVDQGSKUDVHVWKDWˋWWKHLUYLVLRQXVLQJDWHPSODWHFUHDWHGE\&DO3RO\ students (see Figure 2). Once complete, each table shared their vision statement with the other participants. Each table’s vision statement helped guide their decisions in the Lego Scenarios activity. The subsequent pages show the results of the Mad Libs Visioning activity. Each page corresponds to a separate sentence and blank within the Vision Statement. Responses were collected and arranged with the most commonly repeated words or phrases at the top. Figure 2: Mad libs vision statement template Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 181  Packet Pg. 188 of 389  5 Community Outreach Summary Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 182  Packet Pg. 189 of 389  6 Community Outreach Summary Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 183  Packet Pg. 190 of 389  7 Community Outreach Summary Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 184  Packet Pg. 191 of 389  8 Community Outreach Summary Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 185  Packet Pg. 192 of 389  9 Community Outreach Summary Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 186  Packet Pg. 193 of 389  10 Community Outreach Summary Activity #2: Lego Scenarios The Lego Scenarios activity tasked participants with placing at least 1,200 homes on the project area base map. Participants could add other uses such as commercial, light industrial, greenspace, and “Your Big Idea”. Participants could place bricks anywhere on the map, regardless of existing buildings, land use, or zoning and could stack bricks to indicate increased density. Participants could also create mixed-use stacks by placing different color land use bricks on top of each other. Each yellow brick represented ten homes per acre of residential. Each red brick represented one acre of commercial space. Each gray brick represented one acre of light industrial space. Each green brick represented one acre of parks/open space. Each blue brick represented “Your Big Idea”, which could be anything from a new school, more restaurants, a stadium, etc. The following maps were created as a complication of all 9 group’s results. The maps were separated by the the land use designation options (housing, commercial, open space, industrial). The numbers on the map correspond to the average amount of lego blocks placed in each area. The average densities provide insight on the uses and densities comunity members would like to see. See Appendix for the lego maps created by each group during the workshop. Figure 4: Instructions for the lego mapping activity handed out to each group. Figure 3: Aerial view of group 3 lego scenario Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 187  Packet Pg. 194 of 389  11 Community Outreach Summary The community placed a high concentration of lego blocks designated for housing between East Charleston Road and Highway 101; a medium amount north of highway 101 and at the east of the corridor between 0LGGOHˋHOGDQG(DVW&KDUOHVWRQ5RDGDQGDORZDPRXQWEHWZHHQ$OPD6WUHHWDQG0LGGOHˋHOG5RDGDQGZHVWRIWKHFRUULGRUEHWZHHQ0LGGOHˋHOG5RDGDQG(DVW&KDUOHVWRQ5RDG Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 188  Packet Pg. 195 of 389  12 Community Outreach Summary The community placed a high concentration of lego blocks designated for commercial / mixed - use space between East Charleston Road and Highway 101; the remainder of the site alternates between low and medium concentrations with the low concentrations residing at the west of the corridor between Alma Street and East Charleston Road, and at the east of the corridor between Gideon +DXVQHU-HZLVK'D\6FKRRODQG0LGGOHˋHOG5RDG Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 189  Packet Pg. 196 of 389  13 Community Outreach Summary The community placed a high concentration of lego blocks designated for industrial use at the east of the corridor between East Charleston Road and Highway 101 and north of Highway 101. Very few locations were designated elsewhere throughout the site with a low concentration of blocks placed at WKHZHVWRIWKHFRUULGRUEHWZHHQ$OPD6WUHHWDQG0LGGOHˋHOG5RDGDQGZHVWRIWKHFRUULGRUEHWZHHQEast Charleston Road and Highway 101. There were no designations for industrial use at the remainder of the site. Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 190  Packet Pg. 197 of 389  14 Community Outreach Summary The community placed a high concentration of lego blocks designated for big idea recommendations at the north half of the project site, north of East Charleston Road. Below East Charleston Road, very few big ideas were generated with a low concentration of blocks placed on the southern half of the site. Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 191  Packet Pg. 198 of 389  15 Community Outreach Summary The community placed a high concentration of lego blocks designated for green space between East Charleston Road and Highway 101; a medium amount at the west of the corridor between Alma Street DQG0LGGOHˋHOG5RDGDQGQRUWKRIKLJKZD\DQGDORZDPRXQWDWWKHHDVWRIWKHFRUULGRUEHWZHHQ$OPD6WUHHWDQG(DVW&KDUOHVWRQ5RDGDQGZHVWRIWKHFRUULGRUEHWZHHQ0LGGOHˋHOG5RDGDQG(DVWCharleston Road. Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 192  Packet Pg. 199 of 389  16 Community Outreach Summary Key Findings • Community members generally supported an increase in housing, favoring mixed- use developments integrating residential and commercial spaces. • There was an emphasis on improved connectivity and accessibility, especially for the San Antonio Road Corridor to connect with other parts of Palo Alto. • Concerns were expressed about walking and biking and public transit, with a focus on safe and accessible routes that serve the San Antonio Corridor. • There was a desire for more green spaces, trees, and parks. This included a variety of parks, green roofs, and tree-lined streets. Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 193  Packet Pg. 200 of 389  17 Community Outreach Summary Appendix Lego Mapping Table 1 Lego Mapping Table 2 Lego Mapping Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 194  Packet Pg. 201 of 389  18 Community Outreach Summary Table 3 Lego Mapping Table 4 Lego Mapping Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 195  Packet Pg. 202 of 389  19 Community Outreach Summary Table 5 Lego Mapping Table 6 Lego Mapping Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 196  Packet Pg. 203 of 389  20 Community Outreach Summary Table 7 Lego Mapping Table 8 Lego Mapping Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 197  Packet Pg. 204 of 389  21 Community Outreach Summary Table 9 Lego Mapping Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 198  Packet Pg. 205 of 389  22 Community Outreach Summary Appendix Mad Libs Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 199  Packet Pg. 206 of 389  23 Community Outreach Summary Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 200  Packet Pg. 207 of 389  24 Community Outreach Summary Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 201  Packet Pg. 208 of 389  25 Community Outreach Summary Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 202  Packet Pg. 209 of 389  26 Community Outreach Summary Item 4 Attachment C - January 24, 2024 Visioning Workshop Material        Item 4: Staff Report Pg. 203  Packet Pg. 210 of 389  City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: March 18, 2024 Report #:2403-2712 TITLE Approval of Minutes from March 4, 2024 meeting RECOMMENDATION That the minutes be reviewed and approved. ATTACHMENTS Attachment A: March 4, 2024 Draft Action Minutes APPROVED BY: Mahealani Ah Yun Item 5 Item 5 Staff Report        Item 5: Staff Report Pg. 1  Packet Pg. 211 of 389  CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 4 Regular Meeting March 4, 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, Veenker Present Remotely: Absent: Study Session 1. Study Session to provide early feedback about the proposed redevelopment of Buena Vista Mobile Home Park at 3980 El Camino Real. NO ACTION Consent Calendar Council Member Tanaka requested to pull Agenda Item Number 2. Council Member Tanaka registered a no vote on Agenda Item Number 2. MOTION: Vice Mayor Lauing moved, seconded by Mayor Stone to approve Agenda Item Numbers 2-5. MOTION PASSED ITEM 2: 6-1, Tanaka no MOTION PASSED ITEMS 3-5: 7-0 2. Approval of a Purchase Order with Mobile Modular Management Corporation in the Amount of $244,850, including $222,591 for Basic Services and $22,259 for Contingency, to Provide and Install a Modular Building at 4000 Middlefield Road to Serve as a Temporary Fire Station During Construction of the Fire Station 4 Replacement Capital Project (PE-18004); CEQA Status - Exempt under CEQA Guidelines Section 15303 3. Approval of Office of the City Auditor FY2024 Task 4 Task Orders (CEQA Status - Not a Project) Item 5 Attachment A - March 4, 2024 Draft Action Minutes        Item 5: Staff Report Pg. 2  Packet Pg. 212 of 389  DRAFT ACTION MINUTES Page 2 of 4 City Council Meeting Draft Action Minutes: 03/04/2024 4. Acceptance of the Office of the City Auditor's Quarterly Status Report for the Period of October - December 2023 5. Approval of Professional Services Contract Number C24189371 with Kimley Horn and Associates in an Amount Not to Exceed $178,559 for the Quiet Zone Study Services for railroad crossings at Churchill Avenue, Meadow Drive, and Charleston Road for a term ending December 31, 2025; CEQA – not a project. Action Items 6. Adopt a Park Dedication Ordinance for the Tower Well site, 0.19 acres of land (8,437 square feet) at 201 Alma Street and approve the proposed name “Tower Well Park” as Recommended by the Parks and Recreation Commission. CEQA status - not a project. MOTION: Council Member Veenker moved, seconded by Council Member Burt to: 1. Adopt a Park Dedication Ordinance (Attachment A) for the Tower Well site, 0.19 acres of land (8,437 square feet) at 201 Alma Street, and; 2. Approve the proposed name “Tower Well Park”, and; 3. Referral to the Historic Resources Board and Parks and Recreation Commission to consider the naming of it to be Fredrick Eyerly Tower Well and to refer to the Historic Resources Board adding the site to the California and National Historic Registry. MOTION PASSED: 7-0 7. Public Hearing: Second Reading Planned Community Ordinances for 2901 Middlefield Road and 702 Ellsworth Place. CEQA Status – Categorically Exempt AMENDMENT: Mayor Stone moved, seconded by Council Member Kou to restore the sight triangle specified in the December 11, 2023 ordinance, to “extend to the southernmost corner of the property along Middlefield Road and shall”. AMENDMENT PASSED: 5-2, Lythcott-Haims, Tanaka no AMENDMENT INCORPORATED INTO THE MAIN MOTION MOTION: Council Member Lythcott-Haims moved, seconded by Council Member Tanaka to adopt the draft ordinances amending the Planned Community Ordinance 2343 to rezone 2901- 2905 Middlefield Road and 702 Ellsworth Place as prepared for the February 5, 2024 City Council meeting with the following amendments: Item 5 Attachment A - March 4, 2024 Draft Action Minutes        Item 5: Staff Report Pg. 3  Packet Pg. 213 of 389  DRAFT ACTION MINUTES Page 3 of 4 City Council Meeting Draft Action Minutes: 03/04/2024 1. Require maximum 3-foot-tall cable rail fence within the sight visibility triangle area that maintains visibility through the sides of the sight triangle adjacent to Ellsworth Place and Middlefield Road, and; 2. Remove signage that limits the size of delivery trucks on Ellsworth Place, and; 3. Restore the sight triangle specified in the December 11, 2023 ordinance, to “extend to the southernmost corner of the property along Middlefield Road and shall”. MOTION PASSED: 6-1, Kou no 8. Approval of the 2024 City Council Priority Objectives and Finance Committee and Policy & Services Committee Workplans NO ACTION - ITEM CONTINUED TO MARCH 11, 2024 CITY COUNCIL MEETING Adjournment: The meeting was adjourned at 10:27 P.M. Item 5 Attachment A - March 4, 2024 Draft Action Minutes        Item 5: Staff Report Pg. 4  Packet Pg. 214 of 389  DRAFT ACTION MINUTES Page 4 of 4 City Council Meeting Draft Action Minutes: 03/04/2024 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 5 Attachment A - March 4, 2024 Draft Action Minutes        Item 5: Staff Report Pg. 5  Packet Pg. 215 of 389  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Utilities Meeting Date: March 18, 2024 Staff Report: 2401-2549 TITLE Adoption of a Resolution Approving an Edison Electric Institute Master Power Purchase and Sale Agreement With Silicon Valley Clean Energy Authority and Delegating Authority to the City Manager to Transact Under the Master Agreement for Electricity-Related Commodities and Services CEQA Status: Not a project under CEQA Guidelines 15378(b)(5) RECOMMENDATION Staff recommends that Council adopt a Resolution (Attachment A): (a) Approving the Edison Electric Institute Master Power Purchase and Sale Agreement with Silicon Valley Clean Energy Authority (SVCE) (Exhibit A to Attachment A); and (b) Delegating authority to the City Manager or their designee, the Director of Utilities, to transact under the Master Agreement for electricity-related commodities and services subject to the following limitations: a. The date for delivery of the electricity products for each transaction shall not exceed 36 months from the date the transaction is executed; b. The delivery date for any transaction shall not extend beyond December 2027; c. The maximum aggregate transaction limit under each Master Agreement shall be $25 million; d. All transactions shall be subject to the Palo Alto Municipal Code; and e. All transactions shall be subject to the City’s Energy Risk Management Policies, Guidelines, and Procedures. EXECUTIVE SUMMARY An active set of creditworthy counterparties is essential to ensure that the City can continue to meet its electric supply portfolio planning objectives, internal risk management controls, and external operational and regulatory requirements. Approval of the recommended electric master agreement with SVCE provides the City with an additional electric supplier with which to transact in a timely and competitive manner ensuring that the City’s objectives are met efficiently. Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 1  Packet Pg. 216 of 389  Executing the master agreement does not commit the City to any transactions with SVCE, but it allows for transactions to be executed efficiently in the future. The recommended master agreement was negotiated under terms and conditions acceptable to the City and has been reviewed and approved by the City Attorney’s Office and the City’s Energy Risk Manager. BACKGROUND 1). This set of agreements, which were all approved by Council in March 2013, includes: 2, which modified the Municipal Code to explicitly allow for Council-approved standard form master agreements. The ordinance modified PAMC Section 2.30.140, clarifying the process to enable new suppliers by specifically allowing the use of a standard form agreement that contains the City’s minimum contract terms and conditions. Negotiations could then be carried out with qualified suppliers on an ongoing basis without the need to issue successive formal requests for proposals. Under this process, execution of, and delegation of authority to transact under, standard form master agreements with specific suppliers remains subject to Council approval before any transactions may be completed. 1 Resolution 9324: https://www.cityofpaloalto.org/files/assets/public/v/1/city-clerk/resolutions/reso-9324.pdf 2 Ordinance 5387: https://www.cityofpaloalto.org/files/assets/public/v/1/city-clerk/ordinances/ord-5387.pdf. Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 2  Packet Pg. 217 of 389  In December 2016 Council approved a standard form electric master agreement (Resolution 96523), based on the year 2000 version of the Edison Electric Institute (EEI) Master Power Purchase and Sale Agreement. This standard form agreement has been made available to any wholesale utility supplier on the City’s website since that time, although to date this has not yielded any new enabled suppliers. ANALYSIS 4, has been approved as to form by the City Attorney’s Office, and has also been approved by the City’s Energy Risk Manager. 3 Resolution 9652: https://www.cityofpaloalto.org/files/assets/public/v/1/city-clerk/resolutions/reso-9652.pdf. 4 PAMC Section 2.30.340(c) requires that utilities contracts incorporate the following contract terms and conditions: (1) governing law shall be the laws of the State of California; (2) choice of venue shall be the County of Santa Clara; and (3) a counterparty shall obtain and maintain during the term of the contract the minimum credit rating established as of the date of award of contract of not less than a BBB- credit rating established by Standard & Poor’s and a Baa3 credit rating established by Moody’s Investors Services. Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 3  Packet Pg. 218 of 389  FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 4  Packet Pg. 219 of 389  Attachment A * NOT YET APPROVED * 1 6056763R Resolution No. _________ Resolution of the Council of the City of Palo Alto Approving an Edison Electric Institute Master Power Purchase and Sale Agreement with Silicon Valley Clean Energy Authority and Delegating Authority to the City Manager to Transact Under the Master Agreement for Electricity-Related Commodities and Services R E C I T A L S A. The City of Palo Alto seeks to ensure an active set of creditworthy counterparties to meet its electric supply portfolio planning objectives, internal risk management controls, and external operational and regulatory requirements. B. Silicon Valley Clean Energy Authority (SVCE) is a non-profit, community-owned agency with investment-grade credit ratings. C. Approval of the Edison Electric Institute Master Power Purchase and Sale Agreement (Master Agreement) with SVCE will provide the City with an additional electric supplier to transact with efficiently and competitively. D. The recommended Master Agreement with SVCE has been negotiated under terms and conditions acceptable to the City, reviewed and approved by the City Attorney’s Office, and deemed suitable by the City’s Energy Risk Manager. E. Palo Alto Municipal Code (PAMC) Section 2.30.340 permits the use of Master Agreements to buy and/or sell electricity, gas, and related services through preapproved suppliers, subject to the City’s Energy Risk Management Policy, Guidelines, and Procedures. F. Executing this Master Agreement does not commit the City to any transactions with SVCE but allows for future transactions to be executed efficiently. The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. The Council hereby approves the execution of the Edison Electric Institute Master Power Purchase and Sale Agreement with Silicon Valley Clean Energy Authority (SVCE) (Exhibit A). SECTION 2. The Council hereby delegates authority to the City Manager or their designee, the Director of Utilities, to transact under the Master Agreement for electricity- related commodities and services and to take any actions necessary to implement this Resolution, subject to the following limitations: (a) The date for delivery of the electricity products for each transaction shall not exceed 36 months from the date the transaction is executed; (b) The delivery date for any transaction shall not extend beyond December 2027; Item 6 Attachment A - Resolution Approving Master Agreement with Silicon Valley Clean Energy Authority        Item 6: Staff Report Pg. 5  Packet Pg. 220 of 389  Attachment A * NOT YET APPROVED * 2 6056763R (c) The maximum aggregate transaction limit under the Master Agreement shall be $25 million; (d) All transactions shall be subject to the Palo Alto Municipal Code; and (e) All transactions shall be subject to the City’s Energy Risk Management Policies, Guidelines, and Procedures. SECTION 3. The City Council’s approval of this electric master agreement does not meet the definition of a project under the California Environmental Quality Act (CEQA), pursuant to Public Resources Code Section 21065 and CEQA Guidelines 15378(b)(5) because this activity would not result in a reasonably foreseeable direct or indirect change in the environment. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ___________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ___________________________ ___________________________ Assistant City Attorney City Manager ___________________________ Director of Utilities Item 6 Attachment A - Resolution Approving Master Agreement with Silicon Valley Clean Energy Authority        Item 6: Staff Report Pg. 6  Packet Pg. 221 of 389  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Utilities Meeting Date: March 18, 2024 Staff Report: 2311-2223 TITLE Approval of Amendment No. 2 of C19171513 With CLEAResult Consulting, Inc. (CLEAResult) Extending the Contract Expiration Date by Three Years From April 16, 2024 to April 15, 2027. CEQA Status - Not a Project. RECOMMENDATION Staff recommends the Council approve and authorize the City Manager, or designee, to execute the attached Amendment No. 2 to extend the third-party Electric Vehicle (EV) Program Contract (C19171513) with CLEAResult by three years from April 16, 2024 to April 15, 2027 to finish EV charger installations that have been moving through the Electric Vehicle Technical Assistance Program (EVTAP). The not-to-exceed amount of $736,995 in the original contract will remain the same. EXECUTIVE SUMMARY EVTAP is the key EV charger customer program developed to assist multi-family property, non- profit, school, and small and medium business customers navigate the process of designing, permitting, and installing EV chargers. CLEAResult was selected as the program administrator in April 2019 to provide technical assistance to eligible customers. However, due to the COVID pandemic and longer than anticipated project timelines, CLEAResult is unable to reach the program goal of installing 250 ports at 30 sites by the current contract end date of April 2024. Thus far, CLEAResult has facilitated the installation of EV chargers at 4 non-profits, 1 school, and 2 multi-family customer sites (totaling 81 ports). There are another 4 projects in the process of being installed by April 2024 (estimated 94 ports). Based on additional projects in the pipeline, CPAU staff and CLEAResult are confident that with a contract extension, EVTAP could facilitate EV charger installations at 19 additional sites (estimated 250+ ports), bringing the total number of sites with completed installations to 30 by April 2027. This could be achieved within the $736,995 original contract limit approved by Council in May 2019. Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 1  Packet Pg. 222 of 389  BACKGROUND Transportation currently accounts for roughly two-thirds of Palo Alto’s greenhouse gas emissions. To achieve an 80% emissions reduction from 1990s levels by 2030 (80x30 goal) and prevent catastrophic climate change, drastic changes must be made in the transportation sector along all possible avenues. This requires reductions in the number of vehicle miles traveled, particularly in single occupancy vehicles, and electrification of the remaining vehicles traveled to the greatest extent possible. The April 2021 Sustainability and Climate Action Plan (S/CAP) impact analysis showed a pathway to achieving the 80x30 goal that involved Palo Alto reducing its vehicle emissions from 300,000 metric tons (MT) to 120,000 MT. Reaching this ambitious target will require 85% of new vehicle sales to be EVs and 44% of all vehicles to be EVs by 2030. 1 with an effective date of April 15, 2019. The goal of the agreement was to assist customers in successfully navigating the various stages of the EVSE installation, including site evaluation, engineering support, layout design, contractor bidding and selection process, permitting support, installation project management and the securing of rebates. 1 Council staff report # 10287: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2019/final-approved-report-id-10287.pdf?t=58991.87 Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 2  Packet Pg. 223 of 389  1. The manufacturing sector had slowed down, resulting in the ability to get EV charger equipment and transformers on a timely basis; 2.Properties were in “survival mode” during COVID focusing more on maintaining essential services rather than expanding their resources on outward facing projects; and 3.The “work from home” trend reduced commuting and led to less demand for EVs, resulting in properties feeling less pressured to install EV chargers. While these trends have reversed post-COVID, the resurgence has not been as fast as was originally anticipated when the first amendment was passed. Therefore, staff is requesting that the CLEAResult contract be extended for an additional three years to be able to reach their original goals. ANALYSIS Since the inception of the contract in April 2019, CLEAResult has accomplished the following: •Enrolled 154 sites which signed a Program Participation Agreement. •Conducted 93 Technical Site Visits by CLEAResult engineers to inventory electrical infrastructure and analyze parking layouts. •Prepared and presented 88 Charging Evaluation Reports (“CER”) which include electrical load calculations, transformer loads, EVSE installation scenarios and pricing estimates. •Of these customers: o 7 have completed EVSE installations with CLEAResult assistance (2 MF, 4 nonprofits, and 1 school) o 4 EV charger projects are expected to be completed by April 2024 (2 MFs and 2 non-profits) o 49 customers remain active, of which an estimated 19 customer sites are expected to be able to install chargers by April 2027. Each project takes an average of 2 years or more to complete. Continuing to use CLEAResult’s expertise and relationships makes it more likely that the City will achieve the EVTAP program goals. They are subject matter experts in EVSE installations and have deep knowledge of every aspect of EVSE project implementation. Nurtured over many months, CLEAResult account managers have established strong working relationships with the multi- family, school and non-profit customers currently enrolled in EVTAP. They also have intimate knowledge and understanding of each property’s needs, as well as the technical and funding limitations of each site. CLEAResult is positioned to be the best possible partner to bring these projects to completion. The goal of this extension is to ensure that 30 projects are completed by the end of the 8-year term. Of those, 11 sites are expected to be completed before the extension goes into effect. The other 19 sites currently in the pipeline will be the focus during the 3-year extension period, Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 3  Packet Pg. 224 of 389  with the goal for all 30 sites to have EVSEs operational by the end of the recommended contract extension period through April 2027. The extension would provide CLEAResult the necessary time to assist these customers complete installations to meet the Program goal of 30 sites. FISCAL IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 4  Packet Pg. 225 of 389       !"#" "$%$&$'$()*+",-./00"0#120"120,34," 56789:;<:;=>?@A=678B9:;<:;=CD=E;=FG=>?EHIJKA=68<7;<LMND78;=F<7;=8OFG6PQ@@RQLS;<L=N;=69XV9X5VQEM7F;7G6F=F<:Y;7G7ZMGFZF=7;ABET5UCDQ;<X5EV>]^X5T>_QT>E?Q5`8GFZF=7;QMG=<=aJRbF7<7;=R@JQ9Y8=7;Q5`8IPIKABEV>]^X59>5CD?ET5U;<EV>]^X59>5FGMMG=7dMS8=6BF=78C7;=6789:;<:;=?#",0156E;=FG=A8<7;<LMNDN8;=F<7;=LS;<L=N;=6F=d787;[MG=F7Ge67GM]Fd7G[fY7Z:;=A[e][DFM=<=G6;7GM887G::FG7MGY8=:F8Q8<=7M<=6F7;?56F=78;NN786=:;<=6E;=FG=7;F<F=`=;<=6E;=7=7;M=6FAKDSF8Q=6FY69ZF7MJQ@@IQ88=7d=6EV>]^X=7:=:==6FF:g8M8?hQ5i[\[WV\[Q7;G;87<F=7;=6Gd;;=8Q=F:8QG;<7=7;8Q;<ZF<:;=Q=6F=78Fj5TV>?klmnmompnq?56MMN7;<7;7=7;886MMZZMS==6789:;<:? "pnorsto?56=F:BE;=FG=C86MM:;E;=FG=>?EL=N;EV>]^X59>5;<ET5UQ<=<9ZF7MJQ@HQ8:;<9:;<:;=>?Q<=<OFG6@HQ@@@L? oukrkrvq?EZ7=M7w<=F:8Y8<;<;=<7;<7;=6789:86MM6d=6:;7;8887;<=8YG6=F:87;=6E;=FG=?5TV>@?]G=7;@QB5[\OC=6E;=FG=786FLS:;<<=F<8=F:=6789F:;=86MMLF:=6<=7=8YMM`GY=7;=6FY688=F:7;=<FM7FZYF8Y;==]G=7;HA5F:7;=7;D=6789F:;= Item 7 Attachment A - CLEAResult Consulting, Inc. Contract Amendment No. 2 C19171513        Item 7: Staff Report Pg. 5  Packet Pg. 226 of 389       !"#$$%&'(#&)&*+,-**#'*./*&,0.#.)12'33.3334,&'3&/*3)$%4*.3,,*.*#&'*#**/#2'*+,-**#&,52'32'*4%#&/#&,0.#.)1&'/.6.*3&'7$$&'**#&,52'32'*'3&'**#'*./*)1*#&,..'/8" (#&)&*9:;'*&*$39<=>?@A@AB5 ;45B ==4AAC>")" (#&)&*9;'*&*$39B 5 ;45B ==4A?5A D"EFGHIJKKFLMN(/6*,23&&3)1*#&,52'32'*4$$*#.6.O&,&'/$73&''1(#&)&*,*#.*4,#$$.2&'&'7$$./'3/*" P"QRLSTUSTHMVSRSKWFLVMHIX"#./&*$,,*.*#)O.*.2'*'3.7$$1&'/.6.*3#.&')1*#&,..'/"`abcdefcbbcgYc\]h`\`i]j[`"- Item 7 Attachment A - CLEAResult Consulting, Inc. Contract Amendment No. 2 C19171513        Item 7: Staff Report Pg. 6  Packet Pg. 227 of 389       !"#$%"&!"'()'*(+,,)-+.+/0123425637892354:;<9;2345=:4>46?22576:C?2A257623:2546287D4522?EH#H#IIIIIIIIIIIIIIIIIIIII4MB,*/0/.KNIIIIIIIIIIIIIIIIIIIII4?94:65?FH"!" HF# HOF#QQRSTUVW9NIIIIIIIIIIIIIIIIIIIIIIII(CNIIIIIIIIIIIIIIIIIIIII*52<NIIIIIIIIIIIIIIIIIIIIII#QQRSTUXW9NIIIIIIIIIIIIIIIIIIIIIIII(CNIIIIIIIIIIIIIIIIIIIII*52<NIIIIIIIIIIIIIIIIIIIIII]Y^N,J-+M`a+/0+.0/.KB(J+1BK+(MK+(*(EbcBK+(M+M1.+aBJ+,dJ/K+(,B*'/(1BK+(MK+(*(EbcBK+(M+M1.+aBJ+,.+L'/`,d€ ‚ƒ„…†‡„ˆ‰Š‹ŠŒ‰… Ž ‘ ’„†‡“Ѕމ…” Item 7 Attachment A - CLEAResult Consulting, Inc. Contract Amendment No. 2 C19171513        Item 7: Staff Report Pg. 7  Packet Pg. 228 of 389       !"#$%&'(&%()*+!,*)+")++-./0*)+"",('$*! '(1%# 23456789:59;<==>??@A<6?BCD;;;AD@>=AD<@C=;AEFCA<CEAIJ;KFL;;>DCCIH=FM9<AC@AD@>=AD<@C=;AE@J?ID?;IHJ@GAG=F?CAAE?@EAA<>?NDA@E?;59EI3O9P;=E;==F?LC;D@>=AIFCA<CEA<A?@A<:?@59;<==>?BCIIAC=I;D<IG=F?LDE;C;AEAFCA<A<;D<IG=H=L;?DC>AA<EACDA>?DIMRST UVUWX0"YZ"R[Z2* \]^'(%_(*)(*)'#'9;LM `CA<CEaIJ;A?DEA?DAbDGACEcEIECE;E9;LMQ `CA<CEdIJ;A?DEA?DAbDGACE9;LMd `CA<CEdIJ;A?DEA?DAbDGACE* \/e'(%_(*)$*#+!9;LQM `CA<CEaIJ;A?DEA?DAbDGACEEIECE;EI9;LQMQ `CA<CEfIJ;A?DEA?DAbDGACEEIECE;EI* \ge'(%_(*))'$)+*%+9;LdM 4ECE9;LdMQ 4ECE9;LdMd 4ECE9;LdM 4ECE9;LdMh 4ECE9;LdMa 4ECE9;LdMi 4ECE9;LdMj 4ECEEI;EII* \ke+1%!+_*+"('%(+_9;LM 4ECEEI;EII9;LMQ 4ECEEI;EII9;LMd 4ECEEI;EII* \le!# %)(&"*!\9;LhM 4ECEEI;EII9;LhMQ 4ECEEI;EII* \me'(%_(*)()+*%+9;LaM dIJ;?C?ADEA?DAb>C?ACE \n^ #)&+*$'(%_(*)('%( Item 7 Attachment A - CLEAResult Consulting, Inc. Contract Amendment No. 2 C19171513        Item 7: Staff Report Pg. 8  Packet Pg. 229 of 389       !"!#$%&'(#&($&)$&&#*+,($&))-.%/(!'%.0#1'234563789:;<=>9::45?@ABC3D@38=899E>F98GE;9=88<HE>;;8H>;IE:4:4:8<9>H;>HE:E>9:4E9D8<>:J>H99:8:4E>:4KLH:9;4HLFKFIM5<=>9:E>94FFK;F;LF:HK9H>:48:9;4HLF:=::4>::N;HKLH:<L>:8;4:9O9:8:4KFIM@394FF=88<:4:9O9>H;:8E9I8O9L:FE>H>HKLH:8Q;:R>8<S==8GE>I8E:E>:4:8>98KLH:<L>:9K:O98;:8E9FE9:HKFI=8GEHH:4::F;<=>9:E>8T9E;8E<KL89KFN=>99J>H:4::F;<=>9:E>8DHHE:E>FA8GE;<L>:99:8:4E>A;:E>U:4E9D8<>:M.#\.($]^_Y`,(aYb^Y^'Ycdb^eaY2('f'!)h(.Z&h(.+&h(.i&h(.j&h(.k&h(.l&h(.m&h(.n&sMrJtM qJ @uD @uD @uD @uD@uD @uD @uD srMrJrMxJsUMrJMMtJzMJ{Ms{MtqUJ qzJ qzJUx q{Jxt q{Jxt q{Jxt q{Jxt q{J{{ttMt qrJ q{ @uD @uD @uD @uD @uD @uD Item 7 Attachment A - CLEAResult Consulting, Inc. Contract Amendment No. 2 C19171513        Item 7: Staff Report Pg. 9  Packet Pg. 230 of 389       !"#$%&'()*' $+'#$",-".") ,)/-0 ,0- ,)0- ,- ,12-2 ,1-2 34# 34#."/ 34# 34# 34# 34# 34# ,.-: ,2- ,-1:."/ 34# 34# 34# 34# 34# ,.-: ,2- ,-1:.":@."/ , , , ,-: ,1-:0: ,)1-1) ,)1-1) ,)0-12LMNOPQRRLSRPTORLMRUPRVOLNNPTWRLOQPWMOLMMTPVURLQUPRURLVQPOOW IdC LVPQTN LWPNUQ LWOR IdC IdC IdC IdCLMNOPQRRLSQPWVNLMRVPOONLNNPOSRLOQPWMOLMMTPVURLQUPRURLVQPOOW Item 7 Attachment A - CLEAResult Consulting, Inc. Contract Amendment No. 2 C19171513        Item 7: Staff Report Pg. 10  Packet Pg. 231 of 389       !"#$%&$'(#)*+,,-$,.*/,00010,2'3/445+*/4036#)*+,,51.,*/,71/1*/1+1*)(895+:***);*/.)*<01#'=*/,71/1*,1#)*.*,;*1,#$%&$'($'(#>=#';?@'=;AFGHIJKLFMIJNIKNODIJPHLQPIPEKFPDOELIPDHGEEOKJDEKDERSJMERGEMFKDDIJHUENPVGKFEEIKFLFOHJMJWCXYHZPDSEIEPDDOJDVPEKJDKDUIDV\]GEGEDQPKVLEJJGEIDOJOJDFLPIDSIPIDWCXYHROJDV^GEIL[_`aKObE[[XHcdYROJDVeJFEQ[[[`^GEILYH[[ZPDGEGPLEC[Hfg^JJFLEDIGIMROJDV`hJ^]ijkCDEDlGGmhJKIJPDLLMPIDKVISMLLEOOJDVPKJbGbJFPKOGJPDSILbILIDQDMEULKDEIKIDQKDEIKLGJLKGKIDQWCCQjpCjJMREjpCjONgEMQPWCCMFGDqVFEPjpJMjpCjJGEOJDVDZ^lBWjpRCjUENPVGPWCCXHYRSJDJMM^GEIL[[ZPDGESJ5stus5s5';??t5s&;FKDPIDSIPIDJMLKDEIKLLMIJPHJMIJMMHUIDVLKDEIKIJWCXHqRPIDFJDIL^GEILYH[[cXqHRPID^GEILqH[[c`^GEILYH[[ZPDIJXGEPEGEvKDEGEDHIJKLFMIJLMIJHPIDGLJHGELIOIJEQLQFDHPDWCDDLKDEIKLKJDEKDEPPIDMbIMPWCCCWZPDbFJMLMUIDVwBEOIDCFbOIPPIJbLUxyESIMPFGGEDEKFPDOEKDEFGJETFPDEEMIJHKJDEKDEPLKDIJHVEMUEJHJMKJDEKDzKFDIJUIDVEmWIOIDcODIJPnWCCCW%ut$5tttu5ts;5'@@'s%;LIDDGEOIDDIJGEKPPEjpCjEOIDIPPFbOIDDMCWCX[H[YRPID^GEILqH[[c`^GEILYH[[ZPDIJXGEPEGEOIDIPIPPFMCWCX[H[YRPID^GEILqH[[c`^GEILYH[[ZPDIJXGEPLIDDjpCjKJPDEFKDIJDEDPDEDUENIJKEMIJDIJGEDQUJECWCXqH_cRPID^GEILqH[[c`^GEILYH[[ZPDIJXGEPEPGESIPIJIJTFIGOJDjELDMKJPDEFKDIJJMIJESIMPFGGEDEKFPDOECW Item 7 Attachment A - CLEAResult Consulting, Inc. Contract Amendment No. 2 C19171513        Item 7: Staff Report Pg. 11  Packet Pg. 232 of 389       !"#$%"&'"($**"+'"$$&'(""")./(&(/**)0$445*01"(&&"&""%23$"/"8&*5:;;<=<>?:@ABCD<EBAF@>GH<?E>IBIJ@=<K:I<@L;<CBE=<?A=:@@M<@>=O'0&"0""$QR'*$.&**)"/(*"0"9&"./&0&&"$"*54S.TU,S V."V$"&**W'"*1P0"#U)*%! 0"#00"#$""0$&.X')&"&&"'&*"*.,-4,.0"9&&'"9&000"#*Z(*$"&*'$(3544$'&"*P+'""0*&"&*')&"&"&*'$$)$"*"%2354"0"9&"X&'4W.%23.$#$"5444"$"#/$.0"&'"**&"154$&"'&.,-4,("$/"$/"54$&^0"$,-$'&"&'154"",-4,a**U"/(R'$"0*&$/(()*)*/Ccfg MhiLgcjklkmHknofpMhiLgcjklknHkqofpMhiLgcjklkqHkrofpBsfgtMjvwSV.[ 6   S]V.$ S].]N V  N S6].$ S].]N V  N S6]. SV.\6 V V [ S  S.6N ] ] ] SN . Item 7 Attachment A - CLEAResult Consulting, Inc. Contract Amendment No. 2 C19171513        Item 7: Staff Report Pg. 12  Packet Pg. 233 of 389 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tem 7 Attachment A - CLEAResult Consulting, Inc. Contract Amendment No. 2 C19171513        Item 7: Staff Report Pg. 13  Packet Pg. 234 of 389       !"#$%&'()*#)+(+#, "#$%&'(-./..012. 345..012. 367292.:: 345.;<9212. 3..0=2>?@< 3ABItem 7 Attachment A - CLEAResult Consulting, Inc. Contract Amendment No. 2 C19171513        Item 7: Staff Report Pg. 14  Packet Pg. 235 of 389  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Community Services Meeting Date: March 18, 2024 Report #:2402-2596 TITLE Approval of a Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need for a Total Not-to-Exceed Amount of $7,373,516 for a Five-year Term; and Amend the FY2024 Budget in the General Fund; CEQA status – categorically exempt. RECOMMENDATION Staff recommends the City Council: 1. Approve and authorize the City Manager to execute Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need for a Total Not-to-Exceed Amount of $7,373,516 for a Five-year Term (Attachment A), 2. Amend the Fiscal Year 2024 Budget Appropriation for the General Fund (requires a 2/3 vote) by: a. Increasing the contract expense appropriation in the Community Services Department by $194,433; and b. Decreasing the Budget Stabilization Reserve by $194,433. EXECUTIVE SUMMARY The Agreement recommended for approval reflects the actualization of previously stated commitments by both the City and PIN to work together as partners to provide high quality and timely animal care services to residents of Palo Alto, Los Altos, and Los Altos Hills. In February 2022, the City Council directed staff to work with Pets in Need (PIN) toward development of a new Agreement that would result in a long-term partnership for shelter operations. City staff and PIN developed a Term Sheet that was approved by Council on August 14, 20231, and was the basis for a new five-year Agreement (Attachment A). The Agreement terms include an annual compensation amount to PIN in the amount of $1.4 million with an annual escalator equal to the higher of: three percent or the yearly percentage change in 1 City Council, August 14, 2023; Agenda Item #6; SR#2306-1712, https://cityofpaloalto.primegov.com/Portal/viewer?id=2632&type=0 Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 1  Packet Pg. 236 of 389  Consumer Price Index (CPI) using the Bureau of Labor Statistics’ Consumer Price Index for the Bay Area plus a $100,000 contingency fund ($20,000 annually) for unforeseen costs, for a total compensation over five years equal to $7.37 million. All terms in the Council-approved Term Sheet (Attachment B) have been included in the new Agreement and no other significant terms have been added. Additional program costs for after-hours veterinary medical care will initially be absorbed by the Animal Control Division of the Police Department. A budget request will be brought forward in FY 2025, to include adding 0.5 FTE Administrative Associate for licensing and up to $20,000 annually for after-hours veterinarian costs and $5,000 annually for other general services costs associated with re-directed animal services. BACKGROUND California requires that cities and counties provide animal control and sheltering services for the purpose of ensuring the safety of people and animals, providing for the proper care, and sheltering of abandoned or neglected domestic animals, licensing domestic animals and providing humane disposal of animals when necessary. There are several ways local jurisdictions meet these requirements; some agencies manage their own animal shelters and animal control services, while others partner with other agencies to take advantage of economies of scale and to reduce costs. Palo Alto maintained its own shelter and provided animal services to other neighboring cities until 2019, when animal sheltering services for Palo Alto and two partner cities, Los Altos and Los Altos Hills, were provided through a public/private partnership with Pets in Need. Animal Control is provided by the Palo Alto Police Department’s Animal Control Officers (ACOs). Summary of Current (2019-2023) Agreement City Council approved a Professional Services Agreement (Agreement) with the nonprofit Pets in Need on November 26, 20182 to operate the Animal Shelter after a public solicitation process for potential operators. The term and compensation of the Agreement include: •Five-year term commencing January 17, 2019 through January 17, 2024 •Compensation to be paid to PIN for performance of the Scope of Services in a not to exceed amount $3,440,626 over the five-year term •A Contingency Fund of $200,000 •A Compensation for Renovation Delays Fund of $60,000 •Completion by City of capital improvement projects not to exceed $3.4 million Key responsibilities of Pets in Need include: •Animal Shelter Services including sheltering stray, abandoned, and owner surrendered animals 2 City Council, November 26, 2018; Agenda Item #13, SR#9822, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=76122 Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 2  Packet Pg. 237 of 389  •Medical Services including veterinarian services to shelter animals, vaccination clinics, micro-chipping, and a low cost spay and neuter clinic •Animal adoptions and foster program •Operating schedules for shelter services, emergency veterinary On November 15, 2021, Pets in Need (PIN) provided formal notification to the City that it would exercise its right to terminate the Agreement without cause in 12 months’ time as allowed in Section 19.2 of the Agreement. PIN stated delays in completing the capital improvement projects, particularly the new dog kennel building as the primary reason for terminating the Agreement. Development of a new Agreement City and PIN staff discussed how best to operate the Animal Shelter for the remaining term of the Agreement and began exploring how to continue the partnership beyond the termination date. On February 14, 20223, the City Council unanimously passed a motion to extend the notice of termination for six months and to proceed with negotiations with Pets in Need for a long-term contract agreement for animal services in Palo Alto. The PIN Board supported extending the termination date for six additional months to end on March 15, 2023. On March 27, 20234, a Council Study Session provided an update on the status of contract negotiations with PIN and an opportunity for the Council to provide feedback on a draft Term Sheet. City staff included a preliminary estimate of the cost and revenue associated with bringing operations of the Animal Shelter back to an in-house model. PIN and City staff continued to refine the Term Sheet and mutually agreed to extend the current agreement to terminate on September 30, 2023. The City Council discussed and provided feedback on the draft term sheet during the study session on March 27, 2023. The Council requested information on the following: •A breakdown of PIN’s costs showing the increased compensation from the original Agreement. •The percentage of PIN’s operating budget that is for animals covered in Palo Alto, Los Altos and Los Altos Hills. •A comparison chart of PIN’s fees with other municipal shelters’ fees. •A more detailed and accurate comparison of PINs services to the Peninsula Humane Society. •PIN’s revenue over the previous five years. •Consideration of a minimum and maximum number of surgeries and events. •A side-by-side comparison of PINs proposal and the in-house model. •A more defined capital plan identified in the Agreement. 3 City Council, February 14, 2022; Agenda Item #9; SR #13952, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=81766 4 City Council, March 27, 2023; Agenda Item #3; SR #2302-0940, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82278 Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 3  Packet Pg. 238 of 389  •Additional information on feral cats, including the method by which they are handled, how many cats are in Palo Alto, where cats are released. PIN prepared responses to the Council’s questions and presented them to Council on June 12, 20235. The responses are included as Attachment C to the June 12th staff report. During this meeting, an additional term was introduced that would provide PIN additional compensation of $55,535 for services rendered since June 1, 2023 and continuing until a new Agreement is executed. PIN calculates this as the difference between the monthly fee (1) specified for Year 5 in Exhibit B of the 2019 Agreement and (2) the monthly fee specified for Year 1 in the proposed new Agreement, effective June 1, 2023. Staff and PIN received valuable feedback from Council at the June 12th meeting and Council passed the following motion unanimously: Direct staff to negotiate an agreement with Pets in Need (PIN) and bring back to Council in August with the following amendments and review: 1. No Trap/Neuter/Return (TNR) changes, through language such as: “Both parties will work together to develop a transparent and humane feral cat program reflective of municipal best practices and the impact on public health and wildlife, and that maintains the current practice where PIN does not release feral cats or cause them to be released.” 2. Review on the number of surgeries 3. Higher revenue opportunities 4. Consider a possible 3-year contract 5. Level of service and termination clause 6. Reporting and oversight 7. Spayed and neutered metrics The direction received from Council and additional input by the PIN Board of Directors resulted in a revised Term Sheet (Attachment B) that the Council reviewed and approved on August 14, 20236. On January 16, 20247, the City Council approved Amendment No. 2 to the current Agreement in the amount of $342,501 to continue operations of the animal shelter for an additional three-month term while the new Agreement was finalized. 5 City Council, June 12, 2023, Agenda Item #13, https://cityofpaloalto.primegov.com/Portal/viewer?id=2049&type=0 6 City Council, August 14, 2023, Agenda Item #6; SR#2306-1712, https://cityofpaloalto.primegov.com/Portal/viewer?id=2632&type=0 7 City Council, January 16, 2024; Agenda Item #6; SR#2312-2462, https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=0964a45a-8f20-48b9-b6e6-478b900942fd Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 4  Packet Pg. 239 of 389  ANALYSIS The attached Agreement reflects the collaborative efforts of the City and PIN to provide quality and timely animal services to the residents of Palo Alto, Los Altos, and Los Altos Hills. Within the past year, PIN has fulfilled their commitment to establish a stable leadership team by hiring a seasoned Chief Executive Officer, Laura Toller Gardner and a Director of Finance, Teri Dunwoody. Along with Dr. Barbara Laderman-Jones, Director of Shelter Medicine and Laura Birdsall, Director of Shelter Operations the team has improved efficiencies and services, including reduced wait times for spay/neuter surgeries, increased numbers of vaccinations, and expanded hours of operation (open 7 days a week). PIN has also provided deeply discounted and free outreach care to animals in Palo Alto, Los Altos and Los Altos Hills. The collaboration between Police Department staff and PIN shelter staff has greatly improved, fostered by regular staff meetings and ongoing, open communication on issues of mutual concern. Both parties have continued to demonstrate their joint commitment to ensure the health and wellbeing of animals and wildlife in the community and have been working together to develop and refine policies that are acceptable to all shelter and animal control staff. New Agreement Terms The terms included in the Agreement are based on the Term Sheet (Attachment B) approved by the Council on August 14, 2023 and summarized below. •Term: Five Years with ability to mutually extend an additional five years. •Annual Compensation: $1.37M increasing annually at a percentage equal to the higher of: (a) three percent or (b) the yearly percentage change in CPI using the Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers for all items for the San Francisco-Oakland-Hayward area. •Contingency: $20,000 per year, a total of $100,000 over the initial five-year term •Improvements to Premises: City to budget $2.5M in one lump sum in Fiscal Year 2025 for capital improvements. Improvements, to be completed by the City, will be prioritized in the following order: o New cat and small animal area o Additional dog kennel improvements o Medical suite retrofits to accommodate large animals •Scope of Services: PIN Responsibilities - o Maintain public access hours to shelter seven days per week, for a minimum of 40 hours per week. o Provide low-cost, high-quality spay/neuter services to dogs and cats to the best of its ability, prioritizing residents of Palo Alto, Los Altos, and Los Altos Hills. Wait Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 5  Packet Pg. 240 of 389  times for surgery for in-jurisdiction animals will be no more than one month, except in the event of unexpected and exceptional circumstances. o Provide low-cost vaccination clinics in Palo Alto a minimum of one time per week and will work toward one after-hours or weekend clinic per month. o Provide veterinary care for live animals impounded as part of cruelty investigations. o Submit monthly activity reports. o Submit quarterly financial reports. City Responsibilities – o Costs for after-hours emergency veterinary services for animals on stray hold. o Cost for additional services related to cruelty investigations, including after- hours emergency veterinary care, post-mortem examinations of animals that are deceased upon arrival at the Shelter, and off-site crime scene investigations. o Costs to dispose of dead wildlife. o Capital improvements to shelter facilities. o Animal control services. In addition, both parties agree to work together on a feral cat policy, review best animal welfare practices and keep policies up to date, and work collaboratively when revising or creating a new policy. FISCAL/RESOURCE IMPACT The FY 2024 Adopted Operating Budget includes $1.3 million for contract costs to manage the Animal Shelter. An additional $194,433 is requested to align with the new operating agreement at $1.4 million, plus an additional month of the supplemental payment for June 2023. The FY 2025 Proposed Budget will recognize additional revenue for licensing fees collected from pet owners residing in Palo Alto. The Animal Control Division of the Police Department will initially absorb the additional program costs and bring forward a budget request in FY 2025, including adding 0.5 FTE Administrative Associate for licensing and up to $20,000 annually for after-hours veterinarian costs and $5,000 annually for other general services costs associated with re- directed animal services. Staff are negotiating new animal service agreements with the partners cities of Los Altos and Los Altos Hills and any additional revenue recognized as part of these agreements will be brought forward to the Council at a future meeting. The FY 2024 Adopted Capital Budget includes $2.8 million for the Animal Center Renovation Project (PE-19002), including $1.6 million for anticipated increases for the new PIN agreement. To date, a total of $6.0 million has been allocated to this project and $2.9 million has been expended on shelter improvements. Staff will recommend a reappropriation of funding from FY 2024 to FY 2025 as part of the annual budget process and is subject to Council approval of the FY 2025 Proposed Capital Improvement Program (CIP). Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 6  Packet Pg. 241 of 389  STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 7  Packet Pg. 242 of 389  Page 1 of 35 CITY OF PALO ALTO CONTRACT NO. C24190819 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND PETS IN NEED FOR PROFESSIONAL SERVICES This Professional Services Agreement (“Agreement”), dated for convenience on April 1, 2024, is entered into by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY” or “City of Palo Alto”), and PETS IN NEED, a California non-profit public benefit corporation, located at 871 Fifth Ave, Redwood City, CA 94063 ("CONSULTANT" or “Pets In Need”). RECITALS The following recitals are a substantive portion of this Agreement and are hereby incorporated herein by this reference. A. CITY intends to provide animal sheltering and veterinary care, as more fully described in Exhibit “A” (Scope of Services), attached to and made a part of this Agreement, for the City of Palo Alto, and for the City of Los Altos and the Town of Los Altos Hills (the “Contract Cities”), at the Palo Alto Animal Shelter, 3281 East Bayshore Road, Palo Alto, CA 94303 (the “Palo Alto Animal Shelter” or the “Premises”). B. CITY and CONSULTANT desire for CONSULTANT to perform the Services (as defined below) at the Palo Alto Animal Shelter pursuant to the terms and conditions set forth in this Agreement. C. CITY acknowledges that CONSULTANT is entering into this Agreement in furtherance of its no-kill mission, and that, to the extent permitted by law, CONSULTANT will operate the Palo Alto Animal Shelter as a no-kill shelter. D. CITY and CONSULTANT are entering into this Agreement with the intention of establishing a long -term partnership to offer exceptional shelter services for Palo Alto and its partner cities of Los Altos and Los Altos Hills, while working together towards building a new Pets in Need Palo Alto animal shelter facility. 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” (“Services”) in accordance with the terms and conditions contained in this Agreement. SECTION 2. TERM. The term of this Agreement shall be from April 1, 2024 (the “Effective Date”) through March 31, 2029 unless terminated earlier pursuant to Section 19 of this Agreement. The term of this Agreement may be renewed or extended upon the mutual written agreement of the parties for a subsequent five-year term (or any other length). One year prior to the expiration of the term (or other such timeline as may be mutually agreed upon by the parties), either party may request the parties to begin negotiating in good faith a renewal or extension of this Agreement. DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 8  Packet Pg. 243 of 389  Page 2 of 35 SECTION 3. USE OF PREMISES. CONSULTANT’s use of the premises shall be subject to the additional terms set forth on Exhibit “D” (Use of Premises) attached hereto. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be in the amount of, and shall not exceed $7,273,516.00 as detailed in Exhibit “B” (Compensation). CONSULTANT agrees to complete all Services within this amount. 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. Notwithstanding the foregoing, a contingency fund of one hundred thousand dollars ($100,000) (the “Contingency Fund”) shall be available. In the event the Contingency Fund is utilized as provided for herein, the total compensation for Services, reimbursable expenses and the costs payable by CITY to CONSULTANT under this Agreement, shall be and shall not exceed $7,373,516.00 as detailed in Exhibit “B” (Compensation), subject to Section 19 (“TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES”). SECTION 5. INVOICES. In order to request payment, CONSULTANT shall invoice the CITY for payment on a monthly basis. Invoices shall describe the services performed and, if reasonably requested by CITY, supporting documentation. CONSULTANT’s invoice shall be submitted to the City’s project manager for payment at which point the CITY has 30 business days from the date of the submission to render payment to the CONSULTANT. Invoices must also include CONSULTANT name, address, contract number, description of services, date of services, and compensation amount. 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 or supervise, as applicable, the Services required by this Agreement and that its personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, and its employees have and shall maintain (and that it shall require its subcontractors, if any, to have and 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. Notwithstanding anything to the contrary in this Agreement, the representations and warranties in this Section 6 are exclusive and are in lieu of all other warranties of any kind, whether express or implied (including, without limitation, the implied warranties of merchantability, fitness for a particular purpose and noninfringement, and all warranties that may arise from course of dealing, course of performance or usage of trade), all of which are hereby expressly disclaimed. 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 are applicable to the performance of the Services or those engaged to perform Services under this Agreement. These include, but are not limited to, Palo Alto Municipal Code Title 6 “Animals”. 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 correcting such errors and omissions, any change order markup costs, or costs arising from delay DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 9  Packet Pg. 244 of 389  Page 3 of 35 caused by such errors and omissions or unreasonable delay in correcting such errors and omissions. SECTION 9. [RESERVED]. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, any person employed by CONSULTANT, and any subcontractor retained by CONSULTANT to perform any of CONSULTANT’S obligations 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 without the prior written consent of the City Manager. The City Manager shall have sixty (60) days from receipt of Consultant’s notice of proposed assignment to accept or decline the proposed assignment in writing. If the City Manager declines the proposed assignment, he or she shall state the basis for the decision in the written notice to CONSULTANT. Consent to one assignment shall not be deemed to be consent to any subsequent assignment. Any assignment not expressly contemplated under this Agreement, or made without the approval of the City Manager shall be void. SECTION 12. SUBCONTRACTING. Notwithstanding Section 11 above, CITY agrees that subcontractors may be used to perform CONSULTANT’S obligations under this Agreement. The subcontractors authorized by CITY to perform work on this Project are: a. Sage Veterinary Center; and b. MedVet, and c. Pets Rest Cemetery, and d. Flinstone Enterprises/San Jose Tallow Co. e. Any other subcontractors retained by CONSULTANT to perform CONSULTANT’S obligations under this Agreement. CONSULTANT shall be responsible for directing the work of any subcontractor and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning subcontractor compensation. CONSULTANT shall be fully responsible to CITY for all acts and omissions of a subcontractor as more fully set forth in Section 16 of this Agreement. SECTION 13. PROJECT MANAGEMENT. CONSULTANT shall assign its chief executive officer, who currently is Laura Toller Gardner, as the project manager to have supervisory responsibility for the performance, progress, and execution of the Services and as the project coordinator to represent CONSULTANT during the day-to-day performance of the Services. If circumstances cause the substitution of the project manager (including if, at any time, Laura Toller Gardner no longer serves as Chief Executive Officer of CONSULTANT), CONSULTANT shall promptly notify the CITY’s project manager of such substitution and consider in good faith CITY’s requests with respect to such substitution. The parties agree that during the term of this Agreement and for all purposes of this Agreement, CONSULTANT’S project manager shall be authorized to act as the “Superintendent” of the City’s animal services division pursuant to Section 6.04.100 of the Palo Alto Municipal Code, for purposes of Sections 6.12.010, 6.12.030, 6.12.050, 6.16.050, and 6.32.040 of the Palo Alto Municipal Code. DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 10  Packet Pg. 245 of 389  Page 4 of 35 CITY’s project manager is the Director of Community Services, Community Services Department, 1305 Middlefield Road, Palo Alto, CA 94303, Telephone (650) 463-4900, who is currently Kristen O’Kane. The project manager shall 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 with prompt written notice to CONSULTANT. SECTION 14. INTELLECTUAL PROPERTY RIGHTS. 14.1 Definition of Intellectual Property Rights. “Intellectual Property Rights” means patents of any type, design rights, utility models or other similar invention rights, copyrights, mask work rights, trade secret or confidentiality rights, trademarks, goodwill, trade names, logos and service marks and any other intangible property rights, including applications and registrations for any of the foregoing, in any country, arising under statutory or common law or by contract and whether or not perfected, now existing or hereafter filed, issued, or acquired. 14.2 “Pets In Need” Ownership. The parties acknowledge and agree that, as between the parties, Pets In Need owns all Intellectual Property Rights in its name (“Pets In Need”), logos and marks, as may be amended from time to time by Pets In Need. 14.3 “City of Palo Alto” Ownership. The parties acknowledge and agree that, as between the parties, the City of Palo Alto owns all Intellectual Property Rights in its name (“City of Palo Alto”), logos and marks, as may be amended from time to time by the City of Palo Alto, and in accordance with Palo Alto Municipal Code as may be amended from time to time. 14.4 “Palo Alto Animal Shelter” Ownership. The parties acknowledge and agree that, as between the parties, the City of Palo Alto owns all Intellectual Property Rights in the name “Palo Alto Animal Shelter”. 14.5 Grant of License by City of Palo Alto. The City of Palo Alto hereby grants to Pets In Need a royalty-free, non-transferable term license, for the term of this Agreement, to use, reproduce, make derivative works, display, and perform publicly the name “Palo Alto Animal Shelter” solely in conjunction with “Pets in Need”, for example, and without limitation, “Pets in Need Palo Alto Animal Shelter” and “Palo Alto Animal Shelter, operated by Pets in Need,” for purposes of the performance of this Agreement, as provided for herein. 14.6 Name Changes; Development of Logos or Marks. Any name changes, derivative works, or logos or marks as may be developed by Pets In Need with regard to such animal shelter are required to be approved in writing by the City of Palo Alto City Manager or designee prior to any publication, or any other public use, in any form or media. The City Manager shall approve or deny such requests in writing within 45 days of receipt of CONSULTANT’s complete written proposal, and shall set forth its basis for any denial in writing. During the term of this Agreement, the City of Palo Alto shall not change such name of such animal shelter, nor develop any derivative works, or logos or marks, with regard to such animal shelter, except as is mutually agreed in writing with the Pets In Need Executive Director or designee prior to any publication, or any other public use, in any form or media. The City Manager shall approve or deny such requests within 45 days of Consultant’s complete written proposal, and shall set forth its basis for any denial in writing. Notwithstanding anything to the contrary in this Agreement, CITY agrees that DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 11  Packet Pg. 246 of 389  Page 5 of 35 CONSULTANT may offer naming rights for any wing, room, kennel, or other area within the shelter in compliance with the City’s Naming Policy and Procedure. 14.7 Limitations on “Pets In Need Palo Alto Animal Shelter”. The City of Palo Alto agrees that its use of the name “Pets In Need Palo Alto Animal Shelter”, and as may be changed as provided for herein, with regard to the animal shelter that is the subject of this Agreement, as well as any logos or marks that may be developed and approved as provided for herein with regard to such shelter, are strictly limited to the term of this Agreement, and that, unless otherwise agreed by the parties in writing, upon expiration or termination of this Agreement, the City of Palo Alto shall cease and desist all use of such names, logos and marks with regard to such animal shelter in relation to the ongoing operation of such shelter as of the date of such termination or expiration. 14.8 Use of City of Palo Alto Seal or Logo. Any use by Pets In Need of any City of Palo Alto seal or logo is required to be approved in writing by the City of Palo Alto City Manager or designee prior to any publication or any other public use, in any form or media, and in accordance with Palo Alto Municipal Code as may be amended from time to time, provided that the City Manager or his designee shall approve or deny in writing a written request by Pets in Need within ten (10) days of the date of the request, and shall set forth his or her basis for any denial in writing. 14.9 Use of Pets in Need Seal or Logo. Any use by the City of Palo Alto of any Pets In Need seal or logo is required to be approved in writing by the Pets In Need Executive Director or designee prior to any publication, or any other public use, in any form or media, provided that the Executive Director of PIN or designee shall approve or deny in writing a written request by CITY within twenty (20) days of the date of the request. 14.10 Reservation of Rights. All Pets In Need Intellectual Property Rights not expressly granted under this Agreement are reserved to and retained by Pets In Need. All City of Palo Alto Intellectual Property Rights not expressly granted under this Agreement are reserved to and retained by the City of Palo Alto. SECTION 15. AUDITS. CONSULTANT shall permit CITY to audit, with two business days’ advanced notice, during the term of this Agreement and for three (3) years thereafter, CONSULTANT’s records pertaining to CONSULTANT’S performance of the Services under this Agreement. (It is understood that such records do not include those pertaining solely to CONSULTANT’s operations in Redwood City or to any services it provides that are not listed on Exhibit A of 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; LIMITATION OF LIABILITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees, volunteers, and contractors (each a “CITY Indemnified Party”) from and against any and all third party demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including reasonable attorneys’ fees, experts fees, court costs and disbursements (“Claims”) to the extent resulting from, or arising out of (i) any act or omission of CONSULTANT that is outside the scope of CONSULTANT’s authority under this Agreement and/or (ii) the negligence or willful misconduct of CONSULTANT or its officers, employees, contractors or subcontractors in the performance of this Agreement. To the fullest extent DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 12  Packet Pg. 247 of 389  Page 6 of 35 permitted by law, CITY shall indemnify, defend and hold harmless CONSULTANT, its directors, officers, employees, volunteers, and contractors (each a “CONSULTANT Indemnified Party”) from and against any and all third party Claims to the extent resulting from or arising out of (i) the negligence or willful misconduct of CITY or its officers, employees, contractors or subcontractors in the performance of this Agreement , (ii) any condition in or about the Premises, except to the extent caused by the negligence or willful misconduct of CONSULTANT or a CONSULTANT Indemnified Party. or (iii) CITY’s decision to transition to a consultant-provided service delivery model and City’s decision, based on CONSULTANT’s representations contained in its proposal to the City and herein, to contract with CONSULTANT to provide the Services. 16.2. In the event of concurrent negligence of more than one party, its Council members (or directors), officers, employees, contractors or subcontractors, the liability for any and all Claims shall be apportioned under the California theory of comparative negligence as presently established or as may hereafter be modified. Nothing in this Agreement shall constitute a waiver or limitation of any rights that a party may have under applicable law in the event of concurrent negligence of persons or entities other than the parties to this Agreement. 16.3. The parties agree to cooperate with each other in the investigation and disposition of third-party Claims hereunder. It is the intention of the parties to reasonably cooperate in the disposition of all such Claims. Such cooperation may include joint investigation, defense and disposition of claims of third parties hereunder. The parties agree to promptly inform one another whenever an incident report, claim or complaint is filed or when an investigation is initiated concerning this Agreement. Notwithstanding the foregoing, in the event of a conflict in interest, each party may conduct its own investigation and engage its own counsel. 16.4. Each party agrees to mitigate any loss or damage which it may suffer in consequence of any breach by the other party of the terms of this Agreement. or any fact, matter, event or circumstance giving rise to a Claim. 16.5. LIMITATION OF LIABILITY. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN OR ELSEWHERE, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, INCIDENTAL, PUNITIVE OR EXEMPLARY DAMAGES, INCLUDING BUT NOT LIMITED TO LOST PROFITS IN CONNECTION WITH THIS AGREEMENT, EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF ANY SUCH POTENTIAL CLAIM, LOSS OR DAMAGE. 16.6. LIMITATION OF LIABILITY OF CITY. EXCEPT WITH REGARD TO CITY'S OBLIGATIONS TO INDEMNIFY AND HOLD HARMLESS THE CONSULTANT PURSUANT TO THIS SECTION 16, CITY’S PAYMENT OBLIGATIONS UNDER THIS AGREEMENT SHALL BE LIMITED TO THE PAYMENT PROVIDED FOR IN SECTION 4 (NOT TO EXCEED COMPENSATION) OF THIS AGREEMENT. 16.7. LIMITATION OF LIABILITY OF CONSULTANT. IN NO EVENT SHALL THE TOTAL AGGREGATE LIABILITY UNDER THIS AGREEMENT OF CONSULTANT TO CITY EXCEED FIVE MILLION DOLLARS. 16.8. CITY represents and warrants that (i) it has complied with Section 2.30.250 of the Palo Alto Municipal Code and (ii) the CITY’s indemnification obligations contained in this is Section 16 represent the valid and enforceable obligations DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 13  Packet Pg. 248 of 389  Page 7 of 35 of CITY. 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, shall 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. No waiver of a condition or nonperformance of an obligation hereunder is effective unless it is in writing signed by the authorized representatives of the parties hereto and, as applicable, approved as required under the Palo Alto Municipal Code or Charter. SECTION 18. INSURANCE. CONSULTANT, at its sole cost and expense, shall obtain, as soon as practicable following the date of this Agreement, and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "C". CONSULTANT shall be responsible for ensuring that its subcontractors retained to perform Services under this Agreement, if any, shall obtain and maintain in full force and effect during the term of the subcontractor’s engagement, the insurance coverage described in Exhibit “C,” as well as a policy endorsement naming CITY as an additional insured under any policies required in this Section 18. 18.1. 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. 18.2. CONSULTANT shall file with CITY certificates evidencing such insurance as soon as practicable following the date of execution of this Agreement but in any event prior to the first day any of CONSULTANT’S obligations are performed hereunder. The certificates shall be subject to the approval of CITY’s Risk Manager and shall contain an endorsement stating that the insurance is primary coverage and shall 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 five (5) 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. 18.3. The procuring of such required policy or policies of insurance will not be construed to limit either party’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may terminate this Agreement or suspend the performance of the Services, in whole or in part, in the event of a material breach of CONSULTANT’s obligations to CITY under this Agreement, which breach is not cured by CONSULTANT within (60) days of receipt of written notice from CITY to CONSULTANT detailing the nature of such failure. The City Manager may terminate this Agreement without cause by giving one-year prior written notice thereof to CONSULTANT. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Services, in whole or in part, in the event of a material breach of CITY’s DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 14  Packet Pg. 249 of 389  Page 8 of 35 obligations to CONSULTANT under this Agreement, which breach is not cured by CITY (i) with respect to material breach of CITY’s payment obligations herein, within thirty (30) days of receipt of written notice from CONSULTANT to CITY, or (ii) with respect to material breach of all other CITY obligations hereunder, within sixty (60) days of receipt of written notice from CONSULTANT to CITY detailing the nature of such breach. CONSULTANT may terminate this Agreement without cause by giving one-year prior written notice thereof to CITY. 19.3. In the event of any suspension or termination hereunder, CITY shall pay CONSULTANT for the Services rendered and materials delivered to CITY (i) on or before the effective date of such suspension or termination and (ii) in accordance with this Agreement. CITY shall pay such amounts to CONSULTANT within thirty (30) days after receipt of CONSULTANT’s invoice. To the extent that CITY has prepaid any fees, CONSULTANT shall fund to CITY any prepaid fees on a pro-rata basis to the extent such fees are attributable to the period after the termination date, and CITY shall have no obligation to pay unpaid fees that would have become due during the remaining Term had this Agreement not been terminated. 19.4 The following Sections shall survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.3, this 19.4, 19.5, 20, 25, and 27. 19.5 Force Majeure. Neither Party shall be liable for a failure to perform obligations in this Agreement if such performance is made impossible by unforeseeable causes beyond the Party’s control due to acts of God, war, strike, acts of terrorism, or natural disaster or epidemic or quarantine resulting in a government-declared state of emergency or health order (“force majeure”). The Party subject to the force majeure shall: (1) within 48 hours of suspension, give notice to the other Party of which specific obligations are being suspended and state the date and extent of such suspension and the cause thereof, (2) use its best efforts to mitigate the impacts of such force majeure on its obligations in this Agreement with the least practicable delay, and (3) resume the performance of its obligations as soon as reasonably practicable after the remediation or removal of the cause. In addition to any other right of either party to suspend or terminate this Agreement, if an event of force majeure can reasonably be expected to prevent the affected Party from performing one or more obligations of this Agreement for a period of forty-five (45) days, or already has prevented such performance for forty-five (45) days, then the other Party may terminate this Agreement upon fourteen (14) days written notice to the affected Party. For the avoidance of doubt, except as otherwise provided by applicable law, force majeure shall not include: (1) financial distress nor the inability of either party to make a profit or avoid a financial loss, (2) changes in market prices or conditions, or (3) a party's financial inability to perform its obligations in this Agreement. SECTION 20. NOTICES. Any notice provided for in this Agreement shall be in writing and shall be either (i) personally delivered, (ii) received by certified mail, return receipt requested, or (iii) sent by reputable overnight courier service (charges prepaid) to the recipient at the address indicated below. To CITY: City of Palo Alto, City Manager’s Office 250 Hamilton Ave., Palo Alto, CA 94301 With a copy also to the CITY’s Project Manager. DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 15  Packet Pg. 250 of 389  Page 9 of 35 To CONSULTANT: Attention of the project director at the address of CONSULTANT recited above. Notices will be deemed to have been given hereunder (i) when delivered personally to the recipient, (ii) one (1) business day after being sent to the recipient by reputable overnight courier service (charges prepaid) or (iii) five (5) business days after being mailed to the recipient by certified or registered mail, return receipt requested and postage prepaid. SECTION 21. CONFLICT OF INTEREST 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and shall 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 shall not employ subcontractors or other persons or entities 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 shall 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. CITY agrees and acknowledges that, as of the date of hereof, CONSULTANT is not a “Consultant” as that term is defined by the Regulations of the Fair Political Practices Commission, and that therefore CONSULTANT shall not be required to file the 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 because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. 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 (and copies of which have been provided to CONSULTANT by CITY), 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 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 DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 16  Packet Pg. 251 of 389  Page 10 of 35 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, and a copy of the current policy has been provided to CONSULTANT by CITY. (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 4.62.30 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. This Agreement shall 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. The Services are not subject to prevailing wages. CONSULTANT is not required to pay prevailing wages in the performance of the Services in accordance with applicable law including without limitation SB 7. SECTION 27. MISCELLANEOUS PROVISIONS. 27.1. This Agreement shall be governed by the laws of the State of California without regard to its conflict of laws provisions. 27.2. In the event that an action is brought, the parties agree that trial of such action shall be vested exclusively in the courts of California in the County of Santa Clara, State of California or the United States District Court for the Northern District 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. 27.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations, representations, and DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 17  Packet Pg. 252 of 389  Page 11 of 35 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 shall apply to, and shall 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 shall 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 shall 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), this 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 as soon as practicable, but no later than 24 hours after 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, when executed and delivered by the parties hereto, shall together constitute a single binding agreement. This Agreement may be signed using the City’s Docusign platform. [signature page follows] DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 18  Packet Pg. 253 of 389  Page 12 of 35 CONTRACT No. C24190819 SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the dates below. CITY OF PALO ALTO City Manager Date: APPROVED AS TO FORM: City Attorney or designee PETS IN NEED By: Robert Kalman President of the Board Date: By: Laura Toller Gardner Chief Executive Officer Attachments: EXHIBIT “A”: SCOPE OF SERVICES EXHIBIT “B”: COMPENSATION EXHIBIT “C”: INSURANCE REQUIREMENTS EXHIBIT “D”: USE OF PREMISES DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB 3/7/2024 3/7/2024 Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 19  Packet Pg. 254 of 389  Page 13 of 35 EXHIBIT “A” SCOPE OF SERVICES PETS IN NEED (“CONSULTANT”) agrees to provide Animal Shelter Services as described in Section II below at the Palo Alto Animal Shelter, 3281 East Bayshore Road, Palo Alto, CA, for the City of Palo Alto (“CITY”) and the Contract Cities. CITY agrees to perform the obligations as described in Section III below. I. DEFINITIONS The following terms as used in this Exhibit “A” Scope of Services shall have the meaning provided below: A. “Diseased and crippled animal” means those animals which are known or believed to be infected with any dangerous or communicable disease, or which have an incurable, crippled condition or which are afflicted with any painful disease which is believed to be incurable. B. "Dangerous animal" means any dog or other animal which demonstrates a propensity to assault, bite, scratch or harass people or other animals without provocation. There shall be a rebuttable presumption that any animal that bites a person is a dangerous animal. Capitalized terms used but undefined herein shall have the meanings set forth in the Agreement for Professional Services (this “Agreement”) to which this Exhibit is attached and of which it forms a part. II. PETS IN NEED RESPONSIBILITIES: 1. Animal Shelter Services. CONSULTANT shall perform the following sheltering services and shall provide shelter supplies, animal attendants, supervisors and administrative personnel, and any other personnel, supplies and equipment, reasonably required to perform the following services (“Shelter Services”): a) Shelter of abandoned, surrendered, impounded, lost or stray domestic animals brought to the shelter by CITY or its Contract Cities, its residents, or personnel. b) CONSULTANT may shelter and provide services to animals outside the scope of paragraph (a) above (“non-City animals”) including moving animals between the Palo Alto Animal Shelter and Pets In Need Redwood City facility on a space-available basis and at CONSULTANT’s sole expense for all costs, including labor, equipment, supplies, food, and medication. At no time shall animals within the scope of paragraph (a) above be denied services due to services provided to non-City animals at the Pets in Need Palo Alto Animal Shelter. c) For the avoidance of doubt, to the maximum extent permissible by law, CONSULTANT shall have exclusive DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 20  Packet Pg. 255 of 389  Page 14 of 35 discretion over how long an animal is sheltered, including exclusive discretion to shelter an animal for a longer period than the statutory minimum number of days This section shall not be interpreted to authorize funds in addition to those specified in this Agreement, and CONSULTANT shall be responsible for managing the length of animal sheltering within the funds and resources authorized by this Agreement. d) CONSULTANT shall provide veterinary care, including appropriate medical records, for live animals that are impounded as part of cruelty investigations. CONSULTANT shall not have an obligation to provide additional services related to cruelty investigations, including after-hours emergency veterinary care, post-mortem examinations of animals that are deceased upon arrival at the Shelter, and off- site crime scene investigations, but may do so at its sole discretion upon City request and at the City’s expense. e) Quarantine of biting animals. f) Provision for reclaim of abandoned, lost or stray domestic animals during established business hours. g) Shelter staff shall make every effort to identify lost animals (through ID tags and microchips) and to contact owners. h) Be CITY’s and Contract Cities’ main point of contact (by phone, in-person, and electronic means) regarding animal shelter services, including inquiries regarding missing pets. i) Provide medical evaluation and treatment, if necessary, to all incoming animals. This includes vaccinations, and spay and neuter surgeries to domestic animals. j) Euthanasia (if applicable) and disposal of abandoned, lost, impounded, or stray domestic animals that are unclaimed by their owners and found to be diseased and crippled and/or dangerous as defined by Palo Alto Municipal Code and California State Law. The City acknowledges CONSULTANT’s Euthanasia Policy and that CONSULTANT will apply same at any proceeding it is a party to to determine if an animal is a dangerous animal. k) For purposes of clarity, CONSULTANT shall not be required to provide owner-requested euthanasia at any time, and CITY acknowledges that CONSULTANT has elected not to provide or subcontract this service. l) CONSULTANT shall maintain a public website, separate from the CITY’s website, with information including without limitation: shelter hours, volunteer opportunities, adoption information, medical services offered and information about those services and contact information. m) Consultant shall allow CITY Animal Control Officers access to the shelter at all times for purposes of dropping DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 21  Packet Pg. 256 of 389  Page 15 of 35 off animals and provide reasonable accommodation for Animal Control Officers to begin and end their shifts, and complete administrative work in the shelter. n) CONSULTANT shall maintain, repair and replace all surgical room equipment, cages, hoses, and other equipment at the facility. o) CONSULTANT shall comply with all federal, state, and local laws in effect applicable to the Services upon commencement of the provision of the Services, and shall be subject to inspection by the CITY and other duly authorized federal, state, and local authorities to insure such compliance. This includes the applicable provisions of Palo Alto Municipal Code Title 6, as amended from time to time. For the avoidance of doubt, this provision shall not be construed to expand the scope of the Services as expressly set forth in this Exhibit “A”. p) CONSULTANT shall use commercially reasonable efforts to offer comprehensive volunteer and educational programs which may include, without limitation: animal fostering programs, dog walker programs, and animal care trainings. q) When appropriate, in CONSULTANT’S sole discretion, CONSULTANT may partner and/or coordinate with adoption programs, rescue groups, and other no-kill shelters to maximize the shelter’s adoption rate and/or place animals in suitable foster care. CONSULTANT shall seek CITY’s approval for partnerships in which CONSULTANT pays or receives money or other financial consideration, solely to the extent that such partnership relates to CONSULTANT’s performance of the Services. CITY shall approve or deny in writing any such request within thirty (30) days after receipt of such request. r) Develop and maintain proactive and consistent communication and rapport with CITY by: 1. Responding in a timely manner to emails and phone calls; 2. Communicating and resolving issues and concerns immediately; and 3. Provide excellent service to CITY staff. s) The Parties shall work together to develop a transparent and humane feral cat program that reflects sheltering best practices and takes into account the impact on public health and wildlife; the program shall continue the current practice of not releasing feral cats. t) Develop, in cooperation with CITY, a disaster preparedness plan. 2. Medical Services a) CONSULTANT shall provide supplies, and professional and DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 22  Packet Pg. 257 of 389  Page 16 of 35 trained personnel, employed or under subcontract or contract, necessary to perform the following services (“Medical Services”): Provision of veterinarian services 8.5 hours per day, six days a week to treat and provide veterinarian care for impounded animals, including for animals picked-up by Animal Control Officers. Upon City approval, City shall pay for any after-hours emergency vet services, notwithstanding animals on stray hold, City shall pay for any after-hours emergency vet services. After hours is defined as 5pm- 8:30am Monday, Tuesday, Wednesday, Thursday, Friday, and Saturday, and all day and night Sunday. b) Monitor quarantined animals. c) CONSULTANT shall provide low-cost vaccination clinics a minimum of one time per week. CONSULTANT shall work toward providing one after-hours or weekend clinic per month. d) Conduct microchipping. e) CONSULTANT shall provide low-cost, high quality spay and neuter services for dogs and cats to the best of its ability, prioritizing City and Contract City residents. Wait times for spay and neuter services for City and Contract City residents shall be no more than one month, except in the event of unexpected and exceptional circumstances. f) The City’s Animal Control Officers shall be licensed through CONSULTANT’S medical authority to administer euthanasia as necessary for animals that are unclaimed by their owners and found to be diseased and crippled and/or dangerous as defined by Palo Alto Municipal Code. g) Comply with all laws requiring reporting of animal-borne diseases, including rabies. This includes Municipal Code section 6.32.020, as amended from time to time. 3. Operating Schedules a) CONSULTANT shall provide Shelter Services for the animals twenty-four (24) hours a day, seven (7) days a week. b) CONSULTANT shall provide emergency veterinary services in accordance with Section 597(f) of the California Penal Code. c) CONSULTANT shall have shelter staff on site for care of shelter animals seven (7) days per week, 365 days per year. d) CONSULTANT shall maintain public access hours to the shelter seven days per week, for a minimum of forty (40) hours per week. CONSULTANT shall post the public hours on its website, and inform CITY and Contract Cities in writing of any change in hours. e) CONSULTANT shall observe the following holiday closures for public hours: January 1 (New Year’s Day) Martin Luther King’s birthday DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 23  Packet Pg. 258 of 389  Page 17 of 35 Memorial Day July 4th (Independence Day) Labor Day Thanksgiving Day Day after Thanksgiving Christmas Eve (1/2 Day) Christmas Day 4. Dead Animal Services a) CONSULTANT shall provide storage facilities, disposal mechanisms, administrative personnel, and any other personnel, supplies and equipment reasonably required to perform the following services (“Dead Animal Services”): i. Identification of and notification to the owner of the dead animal, whenever possible; and ii. Disposal of the body of the dead animal. CONSULTANT shall offer animal owners the option to pay for cremation services, in which case, CONSULTANT shall arrange for cremation with the appropriate subcontractor. b) CONSULTANT shall subcontract with one or more subcontractors for the maintenance of a dead animal storage facility as well as collection of dead animals and maintenance of the facility and equipment, all at CONSULTANT’s sole expense. 5. Wildlife a) The impoundment of wildlife shall be managed by CONSULTANT staff. An assessment of wildlife shall be done by medical staff, if necessary. If the animal is severely injured or sick, a licensed veterinarian shall be consulted, and the case shall be fully documented in accordance with AVMA guidelines. This Agreement assumes that all wildlife animals will continue to be transferred to the Peninsula Humane Society at no cost to the CITY or to CONSULTANT, as set forth in the Memorandum of Understanding between CONSULTANT and Peninsula Humane Society dated November 17, 2017. Should Peninsula Humane Society request fees for wildlife intake, CONSULTANT and the CITY shall negotiate in good faith to amend this Agreement per Section 27.4 herein, to provide for the reimbursement by CITY to CONSULTANT of such fees (upon documentation of such fees by CONSULTANT reasonably satisfactory to CITY). b) Costs for disposal and cremation of dead wildlife shall be the responsibility of CITY. 6. Records Management a) CONSULTANT may acquire and use, at its own cost, new shelter management software that best meets its needs. CONSULTANT shall be responsible for continuing to use and update Chameleon, and CITY shall be responsible for paying for the Chameleon DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 24  Packet Pg. 259 of 389  Page 18 of 35 platform, including all licensing modules for use at the shelter, but excluding licenses for use at CONSULTANT’s offsite offices or for data migration or transfer to CONSULTANT’s own platform. CONSULTANT and CITY shall jointly identify the minimum viable data that CONSULTANT shall be required to add to Chameleon upon animal intake. b) CONSULTANT and CITY’s Animal Control shall maintain joint access to the Chameleon database, as provided for in this section. CONSULTANT is responsible for keeping the Chameleon database updated in a timely fashion. Chameleon data is designated “For Official Use Only,” meaning, CONSULTANT may only use such data for the performance of this Agreement, and not for marketing or any other purposes without the prior written consent of the CITY’s City Manager or designee. Annual maintenance fees for the Chameleon software shall be paid by CITY. Repair and replacement cost of the server and supporting hardware, if any, shall also be paid by CITY. CONSULTANT shall not have access to certain areas of the database, such as saved criminal information (as required by law). CITY shall work with the database programmer/vendor to ensure that such areas of the database are not accessible by CONSULTANT. All data entered into the Chameleon database by any party shall be property of CITY. c) Monthly Report i. CONSULTANT shall deliver to CITY during the term of this AGREEMENT, and within thirty (30) days of the end of each month, a monthly Animal Shelter and Impound Report summarizing monthly and year-to-date services provided by CONSULTANT for CITY. This report shall include, but not be limited to, the following information: (1) Medical statistics including spay and neuter, microchips, and vaccinations (number of clinics and number of animals vaccinated) for City, Contract City, and out-of-jurisdiction animals. (2) Number of animals in and out of facility by type of animal and type of intake and outcome. (3) City of origin of all animals upon shelter intake. d) Financial Reporting i. CONSULTANT shall submit quarterly financial reports for the Shelter to CITY to include: (1) Revenues from , adoption fees, and medical services to include vaccines and spay/neuter surgeries. (2) Expenditures, to include staffing, contracts, animal care, indirect costs, and administrative operations. e) Retention of Records, Right to Monitor and Audit DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 25  Packet Pg. 260 of 389  Page 19 of 35 i. CONSULTANT shall maintain records relating to CONSULTANT’s operation of the Palo Alto Animal Shelter for a period of four (4) years after the expiration or termination of this Agreement or until any audits or reviews are completed, whichever comes later, and such records shall be subject to examination and/or audit of CITY, a Federal grantor agency, and the State of California for a period of four (4) years after the expiration or termination of this Agreement or until any audits or reviews are completed, whichever comes later. ii. Records/accounts relating to CONSULTANT’s operation of the Palo Alto Animal Shelter shall be open and accessible to inspection upon reasonable notice during normal business hours throughout the term of this Agreement and for a period of four (4) years thereafter or until any audits or reviews are completed, whichever comes later. iii. Parties, upon request by either party to the other, shall meet on occasion to consider revisions which may be needed to the reporting forms created to document performance of the Services provided. 7. Fundraising, Marketing and Branding a) CONSULTANT shall create and manage fundraising, marketing, volunteer development and education programs. Local volunteer groups shall be integrated into fundraising and other activities and events when reasonably possible. The “Pets In Need Palo Alto Animal Shelter” shall be the initial brand name of the shelter to be operated by CONSULTANT pursuant to this Agreement, and any logo or name change shall be approved in writing by CONSULTANT and the CITY’s City Manager or designee prior to use. 8. Licensing and other fee collection a) CONSULTANT shall charge fees for services according to the CITY’s municipal fee schedule or according to state or local laws. Fees for any services not covered by CITY’s municipal fee schedule or state or local laws shall be set by CONSULTANT. CONSULTANT shall take CITY’s comments into consideration when setting such fees. CITY shall take CONSULTANT's comments into consideration when setting its municipal fee schedule. b) For the first three months of the Term of this Agreement (or any other period agreed upon in writing by the Parties), CONTRACTOR shall continue to manage dog licensing, issuance, and renewals on behalf of CITY and Contract Cities. CONSULTANT shall collect license fees at fee amounts set by the DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 26  Packet Pg. 261 of 389  Page 20 of 35 CITY. CONSULTANT shall retain such fees. After this period, CITY shall manage dog licensing including processing, issuance, and renewals on behalf of CITY and Contract Cities. Licensing information shall be included on all Incident Reports and, additionally, provided to CITY on an as requested basis. CITY shall collect all associated license fees at the fee amounts set by CITY. Licensing includes the licensing of dogs as defined in Municipal Code Chapter 6.16 as amended from time to time. When needed, CONSULTANT shall assist walk-in customers to navigate the online application process or provide a paper application and assist in filling out, as appropriate. c) CITY shall process citation fees, and collect 100% of these fees. PETS IN NEED shall process and retain all other fees and revenues, including without limitation adoption fees, spay, neuter, impoundment, and other fees as listed in the municipal fee schedule. 9. Contract Cities; WeCare Alliance a) CITY and CONSULTANT shall provide services to the City of Los Altos and the Town of Los Altos Hills (the “Contract Cities”) pursuant to the CITY’s amended Regional Animal Care and Control contracts approved by City Council on June 24, 2019. These contracts are valid through June 30, 2024 with an option for an additional five-year extension. The Parties agree that this Agreement assumes that the Contract Cities’ contracts will be in effect during the entire term of this Agreement. b) CITY shall consult with CONSULTANT should the contracts with the Contract Cities be amended or terminated, provided that if any such amendment or termination is reasonably expected to result in increased costs to CONSULTANT, such amendment or termination (if initiated by CITY) shall be subject to CONSULTANT’s prior written consent. CONSULTANT shall notify CITY in writing of its consent or lack thereof within forty-five (45) days after receipt of CITY’s written request, which request shall include the precise language of such amendment or all relevant details of such termination (whichever applies). If CONSULTANT consents, the parties shall amend this Agreement (i) to adjust the scope of Services accordingly and (ii) to cover any reasonable cost increases to CONSULTANT. c) CITY may contract with additional cities, subject to CONSULTANT’s prior written consent. CONSULTANT shall notify CITY in writing of its consent or lack thereof within forty- five (45) days after receipt of CITY’s written request, which request shall include the text of such proposed contracts. If CONSULTANT consents, CONSULTANT and CITY shall amend this Agreement (i) to adjust the scope of Services DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 27  Packet Pg. 262 of 389  Page 21 of 35 accordingly and (ii) to cover any reasonable cost increases to CONSULTANT. d) CONSULTANT shall continue membership in the WeCare Alliance (www.sheltersfirst.org). 10. Cost Overruns or Changes a) If CITY or state laws are passed during the term of this Agreement that require a greater level of service, CITY and CONSULTANT agree to negotiate in good faith regarding the reimbursement of CONSULTANT for additional costs associated with implementing the new laws. If Parties are unable to agree on reimbursement costs, CONSULTANT shall document the increased costs and submit to the City Auditor. The City Auditor shall conduct an independent audit. Parties agree to accept the City Auditor’s determination of any increased costs. b) If current state laws are amended, repealed, otherwise changed or suspended during the term of this Agreement that reduce, alter, or remove existing relevant mandates, either party may require the other party to meet to discuss possible financial and operational impacts of levels of service per the change in law, including but not limited to any decrease in contract amounts paid to CONSULTANT, provided that no such decrease shall be effective unless agreed by CONSULTANT. 11. PIN may also provide additional services not specified in this Agreement at its own expense. These services must comply with all applicable laws and City policies. CONSULTANT shall notify CITY 14 days before providing such services. III. CITY RESPONSIBILITIES. CITY shall: 1. Provide an adequate and safe facility for CONSULTANT to perform the Services. 2. Provide Animal Control Officers (ACOs) and their services for CITY and Contract Cities. This shall include maintenance of ACO vehicles and equipment. Establish fees for dog licensing and animal impounding. 3. With regard to the shelter facility, provide and/or pay for utilities, taxes, electricity, water, gas, waste water, recycling, waste (not animal disposal except for dead wildlife), internet, Chameleon software/database and associated support, and Chameleon server hardware and support (if any), which collectively is estimated to cost approximately $55,000 per year. 4. Develop and maintain proactive and consistent communication and rapport with CONSULTANT a) Respond in a timely manner to emails and phone calls DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 28  Packet Pg. 263 of 389  Page 22 of 35 b) Communicate and resolve issues and concerns immediately c) Provide excellent customer service to CONSULTANT staff and customers 5. Develop, in cooperation with CONSULTANT, a disaster preparedness plan 6. Administer the agreements between the CITY and the Contract Cities regarding animal shelter services. IV. Policies All City and CONSULTANT policies relating to the operation of the Palo Alto Animal Shelter shall be kept in a shared online folder and be accessible to all CONSULTANT and City staff. CONSULTANT shall comply with the City’s shelter policies contained in such folder. If either CONSULTANT or the City has an interest in revising or creating a new policy, it shall notify the other party in writing. Such notices from CONSULTANT shall be addressed to the City’s Supervising Animal Control Officer. The Supervising Animal Control Officer will advise the PIN CEO in writing within five (5) business days whether review and approval are deemed necessary. Review and approval shall be deemed necessary only if the proposed revision will result in (a) a change to the terms of the Services Agreement, or (b) a material change in the level of risk to the City, in services to residents of Palo Alto and/or the contract cities, or in roles and duties of City staff. Notices from the City shall be addressed to the CONSULTANT’s CEO, who shall advise the City in writing within five (5) business days whether review and approval are deemed necessary. Review and approval shall be deemed necessary only if the proposed revision or addition shall result in (a) a change to the terms of the Agreement or the cost to CONSULTANT of performance of the Agreement, or (b) a material change in the level of risk to CONSULTANT, in services to residents of Palo Alto and/or the contract cities, or in roles and duties of CONSULTANT’s staff. In either case, if the response is not an approval, the parties shall meet within five (5) business days of receipt of the response and attempt in good faith to reach an agreement. The subject policy may be revised only upon the written agreement of both parties. CONSULTANT and City shall regularly review generally accepted best animal welfare practices to ensure all policies in effect at the Palo Alto shelter are up-to-date and in line with shelter best practices. V. Corrective Action Plan The City and CONSULTANT agree to work in good faith to meet the obligations described in this Agreement. If either party determines that it will not meet a due date or will fail to deliver a service, it shall promptly send a written corrective action plan to the other party. The corrective action plan shall include the following information: • Task that will not be met. • Justification for failure to complete task • Plan to correct including timeline to reach full compliance • Weekly progress updates to Project Manager (of either the City or PIN) DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 29  Packet Pg. 264 of 389  Page 23 of 35 If the timeline to reach full compliance is not acceptable to the other party, or if compliance has not been met by the due date identified in the corrective action plan, the parties shall meet and confer to determine next steps. DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 30  Packet Pg. 265 of 389  Page 24 of 35 EXHIBIT “B” COMPENSATION CITY agrees to compensate CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the schedule below. SCHEDULE TO EQUAL AND NOT TO EXCEED (SUBJECT TO SECTION 19 “TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES”) Year 1 $1,370,000.00 Year 2 $1,411,100.00* Year 3 $1,453,433.00* Year 4 $1,497,036.00* Year 5 $1,541,947.00* Sub-total Basic Services $7,273,516.00* Reimbursable Expenses $0.00 Contingency Funds $100,000 (not to exceed $20,000 per contract year) Maximum Total Compensation $7,373,516.00* *Annual compensation to PIN will start at $1.37m for Year 1 and increase annually in a percentage equal to the higher of: (a) three percent (3%) or (b) the yearly percentage change in CPI using the Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers for all items for the San Francisco-Oakland-Hayward area, based on the change from October to October of each year (starting with October, 2023). The amounts above are estimates only reflecting a 3% annual increase each year. CONTINGENCY FUNDS To request contingency funds, the CONSULTANT shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, for such services. In addition to the factors above, CITY may consider whether contingency funds are appropriate within existing funding and workload, and contingency funds shall not be released if CONSULTANT has not exhausted unused or unallocated funds. The CITY shall notify CONSULTANT in writing of its approval or lack thereof within ten (10) days after the date of CONSULTANT’s proposal. If CITY’s project manager does not approve CONSULTANT’s request, CONSULTANT may appeal that decision to the City Manager. If authorized by CITY, the contingency services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s project manager DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 31  Packet Pg. 266 of 389  Page 25 of 35 and CONSULTANT, and payment shall be made to CONSULTANT, no later than ten (10) days after the date of CITY’s authorization. Contingency funds are subject to all requirements and restrictions in this Agreement. REIMBURSABLE EXPENSES No Reimbursable Expenses are authorized by CITY through this Agreement, unless pursuant to a written amendment to this Agreement as provided for herein. ADDITIONAL SERVICES No Additional Services are authorized by the CITY through this Agreement, unless pursuant to a written amendment to this Agreement as provided for herein. DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 32  Packet Pg. 267 of 389  Page 26 of 35 EXHIBIT “C” 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 EMPLOYER’S LIABILITY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY PROPERTY DAMAGE $5,000,000 $5,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED - 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 YES PROPERTY INSURANCE YES BUSINESS INTERRUPTION YES INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT ALL DAMAGES $2,000,000 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 AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONTRACTORS, 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. 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 DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 33  Packet Pg. 268 of 389  Page 27 of 35 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 CONSULTANT 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, 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, CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. II. INSURANCE COVERAGE MUST INCLUDE: 1. A PROVISION FOR A WRITTEN THIRTY (30) DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND 2. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY. 3. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL. Vendors are required to file their evidence of insurance and any other related notices with the City of Palo Alto to the following email at : PURCHASINGSUPPORT@CITYOFPALOALTO.ORG DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 34  Packet Pg. 269 of 389  Page 28 of 35 EXHIBIT D USE OF PREMISES SECTION 1. USE OF PREMISES. Consultant shall have the exclusive right to enter and use the Premises during the term of this Agreement for the sole purposes of performing the Services and fulfilling Consultant’s obligations under the Agreement, as detailed in this Section 1 (“Use of Premises”) of this Exhibit D. Consultant shall have the right to permit Consultant’s employees, agents and subcontractors to enter and access the Premises for the sole purposes of performing the Services and fulfilling Consultant’s obligations under this Agreement. Consultant shall have the right to exclude third parties and trespassers onto the Premises. Notwithstanding the foregoing, City’s Animal Control Officers and their supervisors have the right to enter the Premises at any time. In addition, City has the right to enter Premises at any time for the purposes of inspection, emergency response and the performance of City obligations under this Agreement. Consultant shall, at City’s request, promptly remove any of Consultant’s property or Consultant-installed improvements on the Premises to allow City access to the utilities or other City owned facilities/property. In the event City deems it necessary, for purposes of health, safety or building code requirements, in City’s sole discretion, City shall have the right to move, alter or remove any such property or improvements and City shall be responsible for promptly restoring or returning the same to its prior condition. SECTION 2. CONDITION OF PREMISES, CLEANING AND MAINTENANCE. 2.1 Condition of Premises, Routine Interior Cleaning and Janitorial Activities. In connection with its use, Consultant shall maintain the Premises in a clean, safe, secure, orderly, and sanitary condition, consistent with a commercially reasonable standard for a well-run animal shelter facility, so far as the Premises may be affected by Consultant’s activities under this Agreement. Specifically, Consultant shall undertake routine cleaning and janitorial activities as necessary to maintain the interior of the Premises in an orderly condition, as above, provided that nothing in this section shall obligate Consultant to make any alterations or capital improvements to the Premises. Consultant shall maintain all of its own equipment, furnishings and trade fixtures upon the Premises which are required for the maintenance and operation of the Palo Alto Animal Shelter. 2.2 Maintenance and Utilities. Outside of Consultant’s responsibilities for routine interior cleaning and janitorial activities in Section 2.1 of this Exhibit, City shall be responsible for the maintenance of the interior and exterior of the Premises and the surrounding grounds, including (without limitation) the maintenance, repair, and replacement of the roof, building structure, improvements, and the HVAC, electrical, plumbing, and other building systems. City shall perform any alterations to the Premises (1) required by applicable laws or laws of general application (i.e. ADA, seismic regulations, and building codes) and (2) to ensure that utilities (including, without limitation, water, gas, and electricity) are available to the Premises, in amounts sufficient for Consultant to perform the Services. In the event of a utilities outage, the City will work diligently to restore availability as quickly as possible. City shall promptly perform its obligations under this Section 2.2 (“Maintenance and Utilities”). In the event of a maintenance issue that impacts the health and safety of the operations, the City shall respond within 24 hours of receipt of notice from Consultant to develop an action plan to address the issue in an expedited timeframe. SECTION 3. HAZARDOUS MATERIALS. 3.1 Environmental Laws. “Environmental Laws” means any applicable federal, state or local laws and regulations relating to Hazardous Material (including, without limitation, its use, handling, transportation, production, disposal, discharge or storage) or to human health and safety, industrial hygiene or environmental conditions in, on, under or adjacent to the Premises, including without limitation soil, air and groundwater conditions. DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 35  Packet Pg. 270 of 389  Page 29 of 35 3.2 Hazardous Materials. “Hazardous Materials” means any substance, material, waste, pollutant or contaminant which is regulated by applicable Environmental Laws as being hazardous, toxic, flammable, carcinogenic, explosive or radioactive, or is potentially injurious to the public health, safety or welfare or the environment. 3.3 Release. “Release,” when used with respect to Hazardous Materials, means any actual or imminent spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, depositing, or disposing on, in, under or adjacent to the Premises, or any improvements constructed hereunder by or on behalf of the Consultant, or in, on, under or adjacent to the Premises or any portion thereof in violation of Environmental Laws. 3.4 Remediation. “Remediation” (and derivatives thereof such as an without limitation “remediate”), when used with reference to Hazardous Materials, means any activities undertaken to clean up, remove, contain, treat, stabilize, monitor or otherwise control Hazardous Materials located in, on or under or adjacent to the Premises, or which have been or are being, or risk of being Released into the environment. Remediation includes, without limitation, those actions included within the definition of “remedy” or “remedial action” in California Health and Safety Code Section 25322 and "remove" or "removal" in California Health and Safety Code Section 25323, and as may be amended from time to time. 3.5 No Hazardous Materials. Consultant covenants and agrees that Consultant shall not, nor shall Consultant permit any of Consultant’s officers, employees, agents, or subcontractors, to cause or permit any Hazardous Material to be brought upon, kept, used, stored, generated, deposited or disposed of in, on, under or adjacent to the Premises in violation of Environmental Laws, provided that Consultant may store and use such substances in and on the Premises in such limited amounts as are customarily used in the operation of an animal shelter such as the Premises so long as such storage and use is at all times in full compliance with all applicable Environmental Laws and permits. Consultant shall notify the City as soon as possible within 24 hours if and when it learns or has reason to believe that there has been any Release of Hazardous Material in, on, under or adjacent to the Premises. The City may request Consultant to provide adequate information for City to determine that any Hazardous Material permitted hereunder is being handled in compliance with all applicable Environmental Laws, and Consultant shall promptly provide all such information. In the event that any Hazardous Material is Released in, on, under or adjacent to the Premises by Consultant or any of Consultant’s officers, agents, employees, or subcontractors, Consultant shall promptly undertake all necessary actions to Remediate the contaminating Hazardous Material from the Premises and to return the Premises and other City property affected thereby, to the condition existing prior to such Release, or its reasonable equivalent or better, and otherwise investigate and Remediate the Release in accordance with applicable Environmental Laws, at no cost to City. Notwithstanding the foregoing, and excluding Consultant’s notice obligations under this Section, Consultant shall have no Remediation obligations under this Section for (i) the mere discovery of any preexisting condition, or (ii) any conditions arising out of any action or inaction of City, its Council members, officers, employees, agents or subcontractors, and not contributed to by any action or inaction of Consultant or Consultant’s officers, employees, agents, or subcontractors, (iii) any conditions arising out of any action or inaction of third party vendors that are not an agent or subcontractor of Consultant, and not contributed to by any action or inaction of Consultant or Consultant’s officers, employees, agents, or subcontractors, (iv) any conditions arising out of any action or inaction of a third party, not an agent or subcontractor of Consultant, and not contributed to by any action or inaction of Consultant or Consultant’s officers, employees, agents, or subcontractors. 3.6 Hazardous Material Indemnity. Consultant shall, on behalf of itself and its successors and assigns, indemnify, defend and hold harmless City, its Council members, officers, employees and contractors (each a “City Indemnified Party”) from and against any and all claims, DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 36  Packet Pg. 271 of 389  Page 30 of 35 liabilities, penalties, forfeitures, losses and/or expenses (including, without limitation, diminution in value of the Premise, damages for the loss or restriction on use of the rentable or usable space or of any amenity of the Premise, damages arising from any adverse impact or marketing of the Premises and sums paid in settlement of claims, response costs, cleanup costs, site assessment costs, reasonable attorneys’ fees, reasonable expert fees, judgments, administrative rulings or orders, fines, penalties, costs of death of or injury), to any person or damage to any property whatsoever (including, without limitation, groundwater, sewer systems and atmosphere), arising from, or caused or resulting, in whole or in part, directly or indirectly, by the presence or discharge in, on, under or adjacent to the Premises by Consultant, or Consultant’s officers, employees, agents or subcontractors, of Hazardous Material, or by any such party’s failure to comply with any applicable Environmental Law, whether knowingly or by strict liability. Such Consultant indemnity obligations include, without limitation, and whether foreseeable or unforeseeable, all costs of any Hazardous Materials management plan, closure, investigation, repairs, and Remediation and restoration of the Premises to its prior condition. For purposes of such indemnity obligations, any acts or omissions of Consultant, its officers, employees, agents, or subcontractors (whether or not they are negligent, intentional, willful or unlawful) shall be strictly attributable to Consultant. Consultant shall provide the City with written notice of and afford City a full opportunity to participate in any discussions with governmental regulatory agencies regarding any settlement agreement, Remediation or abatement agreement, consent decree, permit, approvals, or other compromise or proceeding involving a Release of Hazardous Materials in, on, under, or adjacent to the Premises by Consultant or Consultant’s officers, employees, agents, or subcontractors as detailed in this Section. Notwithstanding the foregoing, Consultant shall have no obligation to indemnify the City or any City Indemnified Party for (i) the mere discovery of any preexisting condition, or (ii) any conditions arising out of any action or inaction of City, its Council members, officers, employees, agents or subcontractors and not contributed to by any action or inaction of Consultant or Consultant’s officers, employees, agents, or subcontractors, (iii) any conditions arising out of any action or inaction of third party vendors that are not an agent or subcontractor of Consultant, and not contributed to by any action or inaction of Consultant or Consultant’s officers, employees, agents, or subcontractors, (iv) any conditions arising out of any action or inaction of a third party, not an agent or subcontractor of Consultant, and not contributed to by any action or inaction of Consultant or Consultant’s officers, employees, agents, or subcontractors. SECTION 4. DAMAGE TO UTILITIES. Consultant shall exercise reasonable care to not do anything in, on, under or adjacent to the Premises that damages any City utilities (e.g. gas, water, wastewater, fiber, electric) located in, on, under or about the Premises. Consultant agrees to reimburse City within thirty (30) calendar days of City’s written request for any damages caused to City owned utilities caused by a failure of PIN to exercise reasonable care the Premises. SECTION 5. [RESERVED BY AGREEMENT OF THE PARTIES] SECTION 6. SURRENDER; DUTIES UPON TERMINATION OR EXPIRATION. Upon the expiration or earlier termination of this Agreement, Consultant shall immediately surrender the Premises in the same condition as received upon completion of the improvements detailed in this Agreement and any other improvements completed by City during the term of this Agreement (excepting reasonable wear and tear; casualty not caused or contributed to by Consultant or its officials, employees, agents or subcontractors; or condemnation not caused or contributed to by Consultant or its employees, agents or subcontractors), broom cleaned, walk-through with City staff completed, and free from hazards that are not pre-existing and were not introduced by the City or its officials employees, agents or subcontractors and clear of all debris that is not pre-existing and was not introduced by the City or its officials, employees, agents or subcontractors. At such time, Consultant shall remove all of its property from the Premises hereunder, and shall repair, at its cost, any damage to the Premises caused by such removal. Consultant’s obligations under this Section shall survive any termination of this Agreement. Consultant shall deliver to the City the originals of DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 37  Packet Pg. 272 of 389  Page 31 of 35 all books, permits, plans, records, licenses, contracts, and other documents pertaining to the Premises and its operation, any insurance policies, bills of sale or other documents evidencing title or rights of the City, and any and all other records or documents pertaining to the Premise, whether or not enumerated herein, which are requested by the City or necessary or desirable for the ownership and operation of the Premise, which are in the Consultant’s possession. Consultant shall also deliver to City all keys, alarm codes, passwords, and other items used to secure the Premise. Consultant further agrees to do all other reasonable things reasonably necessary to cause an orderly transition of the management and operation of the Premises. The provisions of this Section shall survive the expiration or earlier termination of this Agreement until the obligations of the Consultant under this Section are fulfilled to the reasonable satisfaction of the City. SECTION 7. REPAIR OF DAMAGE. If any portion of the Premises or any property of City located in, on, under or adjacent to the Premises is damaged or at risk of damage by any of the activities conducted by Consultant or anyone acting by or through Consultant, Consultant shall immediately notify City in writing of such damage or risk of damage. City may remedy, but shall not be obligated to remedy, such damage or risk of damage at Consultant’s sole cost, or City may elect to witness Consultant’s repair work. In the event City elects not to remedy such damage or threat, Consultant shall repair any and all such damage and restore the Premises or such property to its previous condition subject to City’s inspection, review and approval. SECTION 8. CITY’S RIGHT TO CURE DEFAULTS BY CONSULTANT. If Consultant fails to perform any of its obligations under this Exhibit D to restore the Premise, remove or alter improvements or repair damage, or if Consultant defaults in the performance of any of its other obligations under this Exhibit D within a reasonable time after demand by City, then City may, at its sole option, remedy such failure at Consultant’s expense; within ten (10) days of receipt of a bill, Consultant shall promptly reimburse the City’s actual reasonable costs (including without limitation all costs, damages, expenses or liabilities incurred by City, reasonable attorneys’, experts’ and Consultants’ fees) in remedying or attempting to remedy such failure, or City may reduce any outstanding amount due to Consultant under the Agreement by the cost to City of such remedial action. In the alternative, the cost thereof may be made a lien on Consultant’s property as provided in section 12.12.010 of the Palo Alto Municipal Code. Any such remedial action by City shall not be construed as a waiver of any rights or remedies of City under this Exhibit D or the Agreement, and nothing herein shall imply any duty of City to do any act that Consultant is obligated to perform. Consultant’s obligations under this Section shall survive the expiration or earlier termination of this Exhibit D. SECTION 9. GENERAL PROVISIONS. (a) If Consultant consists of more than one person, the obligations of each person shall be joint and several. (b) Consultant may not record this Exhibit D or any memorandum hereof. (c) Any sale or conveyance by City of the Premises, the provisions of Section 19 (“Termination or Suspension of Agreement or Services”) of this Agreement shall govern. SECTION 10. HOLDING OVER. If Consultant remains in possession of the Premises or any part thereof after the expiration of the term of this Agreement, or any renewal option thereto, such occupancy shall be a revocable license from month to month with all the obligations of this Exhibit D applicable to Consultant. Nothing contained Exhibit D or in the Agreement shall give to Consultant the right to occupy the Premises after the expiration of the term of this Agreement, or any renewal option thereto, or upon any earlier termination. SECTION 11. WAIVER OF CIVIL CODE. Consultant expressly waives the benefit of any statute now or hereinafter in effect, including the provisions of sections 1941 and 1942 of the Civil Code of California, to the extent applicable, which would otherwise afford Consultant the right to make repairs at City’s expense or to terminate this Agreement because of City’s failure to keep Premises in good order, condition and repair. DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 38  Packet Pg. 273 of 389  Page 32 of 35 SECTION 12. ALTERATIONS BY CONSULTANT. Consultant may undertake improvements to the Premises not specified in this Agreement at its own cost and upon City approval. Consultant shall comply with all public agency and other legal requirements for such improvements, including prevailing wage laws as applicable. Without City approval, Consultant may make alterations or improvements that cost less than Ten Thousand Dollars ($10,000.00) and which do not affect any building systems or the structural integrity or any structural components of the Premises. However, CITY approval is required for any CONSULTANT improvement involving the installation or use of equipment that can monitor and/or record sound or video of the Premises or portions thereof, including surveillance cameras. 12.1 Ownership of Improvements. All improvements constructed, erected, or installed upon the Premises by Consultant must be free and clear of all liens, claims, or liability for labor or material and shall become the property of City, at its election, upon expiration or earlier termination of the term, and shall remain upon the Premises upon expiration or earlier termination of this Agreement. Any furniture, trade fixtures installed by Consultant, equipment or other property of Consultant (whether obtained prior to or during the term of this Agreement) shall remain the property of Consultant. 12.2 Indemnity for Claims Arising Out of Construction. For the avoidance of doubt, included in Consultant’s obligations under Section 16 (“Indemnity; Limitation of Liability”) of the Agreement to which this is an exhibit, is Consultant’s obligation to indemnify, defend and hold harmless City Indemnified Parties against all Claims arising out of construction and maintenance work performed on the Premises by Consultant or caused to be performed on the Premises by Consultant. 12.3 Certificate of Inspection. In the event Consultant will perform, or cause to be performed, any construction, improvement or alteration or any other work on or to the Premises for which City requires a certificate of completion, then upon completion of any such construction, improvement or alteration, Consultant shall submit to the City Manager a Certificate of Inspection, verifying that such construction, improvement or alteration was completed in conformance with Title 20 of the California Code of Regulations for residential construction, or in conformance with Title 24 of the California Code of Regulations for non-residential construction, as applicable. 12.4 As Built Plans. Consultant shall provide the City Manager with a complete set of reproducible “as built plans” reflecting actual construction within or upon the Premises upon completion of any: (i) new construction or (ii) structural alterations. SECTION 13. ASBESTOS NOTIFICATION. Consultant acknowledges that City has advised Consultant that the Premises contains, or because of its age, is likely to contain asbestos-containing materials (“ACMs”). If Consultant undertakes any alterations, additions, or improvements to the Premises, Consultant shall do so in a manner that avoids disturbing any ACMs present on the Premises. If ACMs are likely to be disturbed in the course of such work, Consultant shall encapsulate or remove the ACMs in accordance with an asbestos-removal plan approved by the City and otherwise in accordance with all applicable laws, including giving all notices required, if any, by California Health and Safety Code §§ 25915-25919.7, as may be amended. SECTION 14. MATERIAL CASUALTY 14.1 Damage and Repair. If a Material Casualty (as defined herein) occurs, then the City shall determine, in its sole and absolute discretion, whether it wishes to continue to operate the Premises as an animal shelter. The City’s failure to provide written notice to Consultant of such election within thirty (30) days after the occurrence of a Material Casualty or other damage or DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 39  Packet Pg. 274 of 389  Page 33 of 35 destruction of the Premises shall constitute the City’s election to continue the operation of the Premises as an animal shelter. If the City elects (or is deemed to elect) to continue the operation of the Premises as an animal shelter after a Material Casualty, or if the Premises is damaged but such damage does not constitute a Material Casualty, then the City shall promptly reconstruct or repair the destroyed or damaged portion of the Premises. City shall pay all costs of repairing and reconstructing the Premises. A “Material Casualty” is a total destruction of the Premises or any damage to the Premises the repair of which would exceed the City Manager’s Council-delegated contracting authority under Palo Alto Municipal Code section 2.30.210, depending on the applicable contract types in relation to the repairs required. 14.2 Termination. If City notifies Consultant in writing within thirty (30) days after the occurrence of a Material Casualty that the City elects to not continue the operation of the Premises as an animal shelter after such Material Casualty, then the Agreement shall immediately terminate as of the date such notice is delivered to Consultant. In the event of such termination, (i) City shall pay Consultant’s reasonable costs in winding down the operations at the Premises, including, but not limited to, any costs associated with the termination of employees by Consultant and (ii) Consultant shall be entitled to retain its prorated compensation amount for the quarter in which termination occurs (prorated for the number of days in such quarter that elapsed up to the date of termination). 14.3 Continuation. If the City elects (or is deemed to elect) or is obligated to reconstruct or repair the damaged portions of the Premises because such damage does not constitute a Material Casualty pursuant to Section 14.1 (“Damage and Repair”), the City and Consultant shall make a determination as to whether the Premises will continue to operate during the reconstruction/repair period. If the parties mutually determine (in their respective reasonable discretion) that the Premises will operate during such period, this Agreement shall remain in full force and effect. Otherwise, Consultant’s obligations to provide animal shelter services under this Agreement shall be suspended during such period. In the event of such suspension, (i) City shall pay Consultant’s reasonable costs incurred by Consultant during any such suspension of operations and (ii) Consultant shall be entitled to retain its prorated compensation amount for the quarter in which suspension occurs (prorated for the number of days in such quarter that elapsed up to the date of suspension). City shall further pay all reasonable costs incurred by Consultant due to such suspension. If the parties desire, during the suspension period, the parties may negotiate in good faith to try to provide for animal shelter services to the best of the parties’ reasonable abilities under the circumstances of such a suspension. SECTION 15. CITY IMPROVEMENTS TO PREMISES. The City has worked with Consultant to identify improvements to the Premises. The City shall improve the Premises as follows: 15.1 Capital Improvement Budget. City shall allocate $2,500,000 in one lump sum in FY2025 for the shelter capital improvements listed in this Section 15. If such funds are unspent (or partially unspent) in any given year, the balance will be reappropriated to the same CIP in the following fiscal year, subject to City Council approval. 15.2 Capital Improvement Oversight. City will manage all phases of capital improvement projects, including planning, design, and construction, with input from Consultant. City shall contract with a reputable animal specialty architecture firm for design of any building improvements. 15.3 Priority of Capital Improvements. Capital improvements will be prioritized in the following order, subject to the budget limits in Section 15.1: 1. New cat and small animal area to include a specific intake area and meet and greet space. 2. Additional dog kennel improvements to include large guillotine doors and any needed safety retrofitting. 3. Retrofit medical suite to better accommodate large animals. DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 40  Packet Pg. 275 of 389  Page 34 of 35 15.8 All work performed by the City shall be performed in a workmanlike manner, in compliance with all applicable laws., City shall take reasonable steps to perform such work in a manner which results in minimal disruption to Consultant’s activities in the Premises. Consultant will take reasonable steps to accommodate City’s work. The City shall enforce all applicable third party warranties at the request of Consultant. City shall promptly obtain final certificates of occupancy for all applicable portions of the Premises. 15.9 Renovation Timeline Updates. City shall provide renovation timeline updates to Consultant on a quarterly basis or more frequently upon request. Six months after the commencement of the construction of the improvements detailed in this Agreement, the parties will meet to review whether the renovation timelines stated herein are on track. DocuSign Envelope ID: 9BAF36FC-2516-4D42-9D61-821E3C483DDB Item 8 Attachment A - Professional Services Agreement (Contract No. C24190819) Between the City of Palo Alto and Pets in Need        Item 8: Staff Report Pg. 41  Packet Pg. 276 of 389  Page 1 of 4 Term Sheet DRAFT •Final budget is subject to City Council approval. •City will manage all phases of capital improvement projects to include planning, design, and construction, with input from PIN. •City will contract with a reputable animal environment specialty architecture firm for design of any building improvements. •New cat and small animal area to include a specific intake area and meet and greet space. •Additional dog kennel improvements to include large guillotine doors and any needed safety retrofitting. •Retrofit medical suite to better accommodate large animals. Item 8 Attachment B - Term Sheet Approved by Council on August 14, 2023        Item 8: Staff Report Pg. 42  Packet Pg. 277 of 389  Page 2 of 4 F. Annual compensation to PIN will start at $1.37M for Year 1 and increase annually at a minimum of the CPI cost-of-living increase for each year plus an annual contingency of $20,000 for ancillary expenses. G. City will cover all costs of delivering any additional services City requires of PIN above and beyond the original 2019 Agreement (such as additional spay neuter requirements). H. PIN may also provide additional services not specified in the new Agreement at its own expense. Services must comply with all applicable laws and City policies. PIN will notify City staff 14 days before providing such services. I. In addition to the monthly fee due to PIN under the new Agreement, City shall pay to PIN the difference between the monthly fee (1) specified for Year 5 in Exhibit B of the 2019 Agreement and (2) the monthly fee specified for Year 1 in the new Agreement, retroactive from the effective date of the new Agreement to June 1, 2023. By way of example only, if the Agreement is effective October 1, 2023, City shall pay to PIN the difference between the new monthly fee and the amounts due under the 2019 Agreement for the months of June, July, August, and September 2023. Based on the compensation agreed in this Term Sheet, the monthly additional fee shall be $55,535. Scope of Services: PIN will provide the services specified in the current Agreement, with the following modifications: J.Shelter hours. PIN will maintain public access hours to the shelter seven days per week, for a minimum of 40 hours per week. The shelter may be closed to the public on PIN observed holidays. K.Spay/neuter. PIN will provide low-cost, high-quality spay/neuter services to dogs and cats to the best of its ability, prioritizing residents of Palo Alto, Los Altos, and Los Altos Hills. Wait times for surgery for in-jurisdiction animals will be no more than one month, except in the event of unexpected and exceptional circumstances. L.Vaccine Clinics. PIN will provide low-cost vaccination clinics in Palo Alto a minimum of one time per week. PIN will work toward providing one after-hours or weekend clinic per month. M.After-hours emergency vet care. For animals on stray hold, City will pay for any after- hours emergency vet services. N.Cruelty investigations. PIN will provide veterinary care, including appropriate medical records, for live animals that are impounded as part of cruelty investigations. However, PIN will not have an obligation to provide additional services related to cruelty investigations, including after-hours emergency veterinary care, post-mortem examinations of animals that are deceased upon arrival at PIN, and off-site crime scene investigations, but may do so at its sole discretion. O.Disposal of Dead Wildlife. Costs for disposal and cremation of dead wildlife will be the responsibility of the City. P.Reporting. PIN will submit monthly activity reports to include the following information: Item 8 Attachment B - Term Sheet Approved by Council on August 14, 2023        Item 8: Staff Report Pg. 43  Packet Pg. 278 of 389  Page 3 of 4 •Medical statistics including spay and neuter, microchips, and vaccinations (number of clinics and number of animals vaccinated) for in jurisdiction and out of jurisdiction animals. •Number of animals in and out of the shelter by type of animal and type of intake and outcome. •City of origin of all animals upon shelter intake. PIN will submit quarterly financial reports for the Palo Alto Animal Shelter to the City to include: •Revenues from donations that benefit the Palo Alto Animal Shelter, adoption fees, and medical services to include vaccines and spay/neuter surgeries. •Expenditures, to include staffing, contracts, animal care, indirect costs, and administrative operations. City and PIN agree to the following: Q.Feral Cat Policy. Both parties will work together to develop a transparent and humane feral cat program that reflects sheltering best practices and takes into account the impact on public health and wildlife. The program will continue the current practice of not releasing feral cats. R.Animal Welfare. PIN and the City will regularly review generally accepted best animal welfare practices to ensure all policies in effect at the Palo Alto shelter are up-to-date and in line with shelter best practices. S.Animal Shelter Software. PIN is at liberty to acquire, at its own cost, new shelter management software that best meets its needs. The City will work with PIN to identify the minimum viable data that PIN will be required to add to the current, shared software system Chameleon upon PIN animal intake. T.Existing City Policy. PIN will comply with all applicable municipal and other laws, and with the City’s shelter policies. PIN policies approved by the City will be specified in the new Agreement. If either PIN or the City has an interest in revising or creating a new policy, it will notify the other party in writing. Notices from PIN will be addressed to the Supervising Animal Control Officer. The Supervising Animal Control Officer will advise the PIN CEO in writing within five (5) business days whether review and approval are deemed necessary. Review and approval will be deemed necessary only if the proposed revision will result in (a) a change to the terms of the Services Agreement, or (b) a material change in the level of risk to the City, in services to residents of Palo Alto and/or the contract cities, or in roles and duties of City staff. Notices from the City will be addressed to the PIN CEO, who will advise the City in writing within five (5) business days whether review and approval are deemed Item 8 Attachment B - Term Sheet Approved by Council on August 14, 2023        Item 8: Staff Report Pg. 44  Packet Pg. 279 of 389  Page 4 of 4 necessary. Review and approval will be deemed necessary only if the proposed revision or addition will result in (a) a change to the terms of the Agreement or the cost to PIN of performance of the Agreement, or (b) a material change in the level of risk to PIN, in services to residents of Palo Alto and/or the contract cities, or in roles and duties of PIN staff. In either case, if the response is not an approval, the parties will meet within five (5) business days of receipt of the response and attempt in good faith to reach an agreement. The subject policy may be revised only upon the written agreement of both parties. All City and PIN policies relating to the operation of the Palo Alto Animal Shelter will be kept in a shared online folder and be accessible to all PIN and City staff. U.Corrective Action Plan. The City and PIN agree to work in good faith to meet the obligations described in the Scope of Services and Capital Improvements sections of the Agreement. If either party determines that it will not meet a due date or will fail to deliver a service, it will promptly send a written corrective action plan to the other party. The corrective action plan will include the following information: •Task that will not be met. •Justification for failure to complete task •Plan to correct including timeline to reach full compliance •Weekly progress updates to Project Manager (of either the City or PIN) If the timeline to reach full compliance is not acceptable to the other party, or if compliance has not been met by the due date identified in the corrective action plan, the parties will meet and confer to determine next steps. Force Majeure V. Standard Force Majeure provision to be added, including epidemics and quarantines. Item 8 Attachment B - Term Sheet Approved by Council on August 14, 2023        Item 8: Staff Report Pg. 45  Packet Pg. 280 of 389  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Planning and Development Services Meeting Date: March 18, 2024 Report #:2312-2330 TITLE Adoption of a Resolution Authorizing Use of the City’s Activity (1) Permanent Local Housing Allocation (PLHA) 2019, 2020, and 2021 Allocations for Predevelopment Activities, Construction, and/or Permanent Financing of New Affordable Housing at the Matadero Creek Affordable Housing Site, and Approve FY 2024 Budget Amendments in the Permanent Local Housing Allocation Fund; CEQA Status – not a project. RECOMMENDATION Staff recommends that City Council take the following actions in support of the City using its Activity (1) PLHA 2019, 2020, and 2021 Allocations: 1. Adopt the Resolution (Attachment A) authorizing use of the City’s Activity (1) PLHA 2019, 2020, and 2021 allocations for predevelopment activities, construction, and permanent financing of new affordable housing at the Matadero Creek affordable housing site identified in the Sobrato Development Agreement, approved on September 12, 2023; and 2. Amend the Fiscal Year 2024 Budget Appropriation Ordinance (Required 2/3 vote) for the Permanent Local Housing Allocation (PLHA) Fund (Fund 253) by: a. Increasing the Other Revenue estimate by $243,756; and b. Increasing the Planning and Development Services Contract Services by $243,756. EXECUTIVE SUMMARY Permanent Local Housing Allocation (PLHA) Program funding is a permanent, ongoing annual source of funding, but these funds need to be assigned to activities identified in the City’s 5- Year PLHA plan. The City is preparing to receive approximately $243,756 in PLHA Activity (1) funds, which were already programmed in the City’s 5-Year PLHA plan for affordable housing activities. Approval of the recommended actions would assign the PLHA Activity (1) funds for PLHA Calendar Years 2019, 2020, and 2021 toward predevelopment activities, construction, and permanent financing of new affordable housing at the Matadero Creek affordable housing site, which is the dedicated affordable housing site identified in the approved Sobrato Development Item 9 Item 9 Staff Report        Item 9: Staff Report Pg. 1  Packet Pg. 281 of 389  Agreement1,2 and in the City’s Housing Element. Execution of the draft Resolution and City submittal to HCD would allow HCD to release Calendar Year 2019 funds to the City by their deadline of April 30, 2024. BACKGROUND 3,4 The City’s 5-Year PLHA plan specified that the anticipated total of $1,388,976 for the PLHA calendar years 2019 through 2023 would be used for the following City priorities: •Assistance to persons experiencing or at risk of homelessness (Activity (6)), including: o Outreach and services to those experiencing homelessness, o Operating expenses for the forthcoming Homekey shelter, and •Affordable housing rental unit preservation, new construction, and operating subsidies (Activity (1)). 1 City Council September 5, 2023 and September 12, 2023, City Manager Report #:2306-1633, 3200 Park Boulevard/340 Portage [22PLN-00287 and 22PLN-00288]: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13288. 2 Staff refers to the dedicated affordable housing site in the Sobrato Development Agreement at the Matadero Creek affordable housing site as a placeholder name so that the City’s PLHA request for funds and future annual reporting will not use the Sobrato name. 3 City Council authorized submittal of the City’s PLHA 5-Year Funding Plan at City Council Meeting October 24, 2022, Agenda Item 5, City Manager Report ID # 14715: https://www.cityofpaloalto.org/files/assets/public/v/7/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2022/20221024/20221024pccsm-amended.pdf; 4 The following activities are allowable under PLHA Section 301(a) Activity (1): The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is Affordable to Extremely low-, Very low-, Low-, or Moderate-income households, including necessary Operating subsidies. Item 9 Item 9 Staff Report        Item 9: Staff Report Pg. 2  Packet Pg. 282 of 389  The 5-Year PLHA plan contains the following funding distribution for Calendar Year amounts known at the time of application: 5 Palo Alto is to receive $198,460 after the City submits a streamlined application in Spring/Summer 2024. The 5-Year PLHA plan already assigns this Calendar Year 2022 funding as follows: •60% assigned to Activity (6) outreach and services; •20% assigned to Activity (6) Homekey shelter operational expenses; and •20% to Activity (1) affordable housing activities. 6 The City Manager’s Office will request PLHA funding for Homekey shelter operating expenses later this year. The Planning & Development Services Department submitted a request to HCD for PLHA Activity (1) funds but needs Council budget recognition to receive and expend funds and a resolution is the most efficient way to provide HCD with documentation confirming that activities will be pursued. ANALYSIS 5 HCD announces PLHA allocations each year via a Notice of Funding Availability (NOFA) for the preceding calendar year. For Calendar Year 2022 PLHA allocations, the NOFA had a planned release of September 2023. However, the NOFA was actually released in December 2023 with application materials following in February 2024. HCD now reviews PLHA applications on an over-the-counter basis and staff will submit an application in Spring 2024 for the City to receive Calendar 2022 funds. 6 City Council Meeting December 18, 2023, Agenda Item 17, City Manager Report # 2311-2216: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13074. Item 9 Item 9 Staff Report        Item 9: Staff Report Pg. 3  Packet Pg. 283 of 389  Agreement Environmental Impact Report and has already directed for the project to occur. This allows the Planning & Development Services Department and Real Estate to prepare for any next steps to commence predevelopment activities, including preparation and release of a Request for Information or a Request for Proposals for an affordable housing developer partner. th Cycle Housing Element period. The location and site control for this future 100% affordable housing project has been approved by City Council through the Sobrato Development Agreement process, which anticipates dedication of 3.25 acres of a 14.65-acre site to the City for the purposes of an affordable housing project and adjacent public park. •aggregating the available Activity (1) funds for one project responds to the significant overall cost of affordable housing construction per bedroom and per unit; •having more funds already dedicated and on hand could help expedite preconstruction activities after an affordable housing partner is identified for the project; and •using the funds for only one project reduces the City administrative time necessary to prepare loan and other regulatory documents and time required for annual grant reporting. Item 9 Item 9 Staff Report        Item 9: Staff Report Pg. 4  Packet Pg. 284 of 389  In the future, PLHA Activity (1) funds for Calendar Years 2022, 2023, and even future years could be assigned to predevelopment activities, construction, and/or permanent financing for the Matadero Creek affordable housing site, or the City could identify a different affordable housing site. FISCAL/RESOURCE IMPACT Approval of the recommended actions would not have a fiscal or resource impact to the City beyond what has already been directed by City Council for staff pursuit of new affordable housing at the Matadero Creek affordable housing site and staff administration of PLHA grant funding. Execution of the draft Resolution (Attachment A) is the most efficient way to provide HCD with documentation confirming that activities will be pursued at the site so that PLHA Activity (1) funds could be released. The PLHA Activity (1) funds will be available to cover a portion of anticipated associated costs incurred by a future affordable housing developer partner, such as for future architectural and engineering services. The City’s 5-Year PLHA plan does not allocate PLHA funds toward staff administrative costs. STAKEHOLDER ENGAGEMENT The 5-Year PLHA plan was adopted at a City Council public hearing. The Sobrato Development Agreement involved community meetings and multiple City Council public hearings. Staff did not conduct any other stakeholder engagement, given that the recommended actions are consistent with pursuing new affordable housing at the Matadero Creek affordable housing site, consistent with PLHA grant administration duties, and involve budget recognition of previously anticipated PLHA funds. ENVIRONMENTAL REVIEW Adoption of the draft Resolution and approval of budget amendments are not considered projects under the California Environmental Quality Act (CEQA) per CEQA Guidelines 15061(b)(3). New affordable housing units at the Matadero Creek affordable housing site was reviewed as part of the certified Environmental Impact Report for the Sobrato Development Agreement, as documented in City of Palo Alto Resolution No. 10123.7 ATTACHMENTS Attachment A: Resolution Directing Staff to Commence Predevelopment Activities for the Matadero Creek Affordable Housing Site APPROVED BY: Jonathan Lait, Planning and Development Services Director 7 City Council September 5, 2023 and September 12, 2023, City Manager Report #:2306-1633, 3200 Park Boulevard/340 Portage [22PLN-00287 and 22PLN-00288]: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13288. City of Palo Alto Resolution No. 10123: https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=61965 . Item 9 Item 9 Staff Report        Item 9: Staff Report Pg. 5  Packet Pg. 285 of 389  NOT YET ADOPTED 1 0160136_20240220_ay16 Resolution No. ______ Resolution of the Council of the City of Palo Alto Directing Staff to Commence Predevelopment Activities for the Matadero Creek Affordable Housing Site R E C I T A L S A. On October 2, 2023, the City Council of the City of Palo Alto adopted Ordinance 5595, adopting a Development Agreement for the redevelopment of the 14.65 acre property at 200-404 Portage Avenue, 3040-3250 Park Boulevard, 3201-3225 Ash Street, and 278 Lambert Avenue (“Development Agreement Project”). B. One of the key public benefits provided under the Development Agreement is the dedication of 3.25 acres of land to the City, of which approximately one acre is intended as the site of a future affordable housing project (“Matadero Creek Affordable Housing Site” or “Site”). C. The certified Environmental Impact Report (“EIR”) for the Development Agreement Project included analysis of up to 75 affordable rental units on the site to be dedicated to the City. D. On October 2, 2023, the City Council adopted Ordinance No. 5600, rezoning the Site to support the future development of a housing project. E. Several aspects of site preparation for the Site are completed or underway (e.g. Phase I reports, relocation of monitoring wells, and underground utility installation to accommodate the future development); F. The City has an urgent need for the development of affordable housing and has been awarded funds under the Permanent Local Housing Allocation (“PLHA”) grant program. G. On July 14, 2023, the Department of Housing and Community Development (“HCD”) and the City executed a Standard Agreement 22-PLHA-17554 which establishes the requirements and procedures for accessing the City’s entitled PLHA 2019-2023 Allocations. H. The City desires to use the City’s Activity (1) PLHA allocations for calendar years 2019, 2020, and 2021, totaling approximately $243,756, for predevelopment activities, construction of, and/or permanent financing for new affordable housing units at the Site, at the affordability level of at or below 60% AMI for a minimum of 55 years. Item 9 Attachment A - Resolution Directing Staff to Commence Predevelopment Activities for the Matadero Creek Affordable Housing Site        Item 9: Staff Report Pg. 6  Packet Pg. 286 of 389  NOT YET ADOPTED 2 0160136_20240220_ay16 NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows: SECTION 1. The City Manager or designee is directed to issue a Request for Information or Request for Proposals to solicit interest in development of an affordable housing project at the Matadero Creek Affordable Housing Site. SECTION 2. The City Council further directs the City Manager or designee to develop a timeline for predevelopment activities and construction of an affordable housing project at the Site that would result in occupancy of the project no later than June 30, 2030. SECTION 3. The City Council further directs the City Manager or designee to continue or commence all feasible predevelopment activities on the site as soon as practical. SECTION 4. To the extent PLHA funds are disbursed to the City to support predevelopment, construction, and permanent financing for an affordable housing project on the Site, the City certifies that it will use all such funds in a manner consistent and in compliance with all applicable state and federal statutes, rules, regulations, and laws, including without limitation all rules and laws regarding the PLHA Program, as well as any and all contracts the City may have with HCD, in accordance with Resolution No. 10080. // // // // // // // // // // // // Item 9 Attachment A - Resolution Directing Staff to Commence Predevelopment Activities for the Matadero Creek Affordable Housing Site        Item 9: Staff Report Pg. 7  Packet Pg. 287 of 389  NOT YET ADOPTED 3 0160136_20240220_ay16 SECTION 5. The Council finds that the adoption of this resolution does not meet the definition of a project under Public Resources Code Section 21065, thus, no environmental assessment under the California Environmental Quality Act is required. The environmental impacts of an affordable housing project of up to 75 units at the Site were analyzed in the 200 Portage Townhome Project Final EIR, which was certified by Resolution No. 10123 on September 12, 2023. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ _____________________________ Assistant City Attorney City Manager _____________________________ Director of Planning and Development Services Item 9 Attachment A - Resolution Directing Staff to Commence Predevelopment Activities for the Matadero Creek Affordable Housing Site        Item 9: Staff Report Pg. 8  Packet Pg. 288 of 389  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Utilities Meeting Date: March 18, 2024 Staff Report: 2403-2726 TITLE Approval of Amended Palo Alto CLEAN Program Rules and Requirements, Handbook, and Power Purchase Agreement; CEQA Status: Not a Project under CEQA Guidelines Sections 15378(a) and (b) RECOMMENDATION Staff recommends that the City Council: 1. Approve the attached amended Clean Local Energy Accessible Now (CLEAN) Program Eligibility Rules and Regulations (Attachment A) as follows: a. Continue the CLEAN Program rate structure for local solar energy resources at 16.5 cents per kilowatt-hour (¢/kWh) until the program reaches 3 MW of solar energy resource capacity, after which the contract rate for solar energy resources reduces to the City’s estimated avoided cost of energy generated by these resources, which is updated to: i. 9.5 ¢/kWh for a 15-Year Contract Term, ii. 9.8 ¢/kWh for a 20-Year Contract Term, and iii. 10.2 ¢/kWh for a 25-Year Contract Term; and b. Continue the CLEAN Program rate structure for local non-solar eligible renewable resources without any participation cap at a contract price equal to the City’s estimated avoided cost of energy generated by these resources, which is updated to: i. 9.4 ¢/kWh for a 15-Year Contract Term, ii. 9.8 ¢/kWh for a 20-Year Contract Term, and iii. 10.1 ¢/kWh for a 25-Year Contract Term. 2. Approve the attached amended CLEAN Program Handbook (Attachment B) to extend the allowable time to complete a project to three years from the date of execution of the Power Purchase Agreement (PPA) for affordable housing developments. 3. Approve the attached amended Palo Alto CLEAN Program Eligible Renewable Energy Resource PPA (Attachment C) to implement the recommended changes to the CLEAN Program. Item 10 Item 10 Staff Report        Item 10: Staff Report Pg. 1  Packet Pg. 289 of 389  EXECUTIVE SUMMARY The Palo Alto CLEAN program, established in March 2012, aimed to encourage local generation of solar energy by allowing property owners to install solar systems and sell energy to the City under a fixed-rate, long-term contract. Initially priced at 14 ¢/kWh for a 20-year term, the program failed to attract interest. In December 2012, the Council increased the contract price to 16.5 ¢/kWh, which has been maintained since. Despite no applications in the first four years, since 2016 the program has enrolled six currently operating solar projects totaling 2.84 MW of capacity. Currently, a customer planning an affordable housing development wishes to submit a CLEAN solar project application but requires an extension of the completion deadline from one to three years to align with permitting and construction timelines for housing projects in Palo Alto. This modification, while maintaining the same initial rate and program capacity, would have minimal financial impact on the City. Staff supports the request and has proposed changes to the program rules and contract designed to accommodate the customer's needs as well as the needs of future residential construction developments that satisfy the basic affordable housing requirements. Council action will also update the avoided costs for CLEAN projects and make conforming changes in the City’s CLEAN Power Purchase Agreement. BACKGROUND In March 2012 the Council adopted the Palo Alto CLEAN program (also commonly referred to as a feed-in tariff, or FIT, program). The program was designed to address the City’s objective of enhancing supply reliability through the pursuit of local generation opportunities. Palo Alto CLEAN enabled property owners to build a new solar system on their property and sell the energy to CPAU under a long-term, fixed-rate, standardized contract rather than simply using the energy on-site. Though solar developers expressed interest in Palo Alto CLEAN in 2012, the initial contract price (14 ¢/kWh for a 20-year term) proved insufficient to attract any program applications. Council increased the Palo Alto CLEAN price to 16.5 ¢/kWh in December 2012, and has maintained it at that level ever since (last reaffirming it in May 2017). In May 2015, Council added a 25-year contract term option, and expanded the program to include non-solar eligible renewable energy resources, setting their contract prices at the avoided cost level. In May 2017, Council added a 15-year contract term option and updated the avoided cost rates. After receiving zero applications in its first four years, since 2016, the CLEAN program has executed contracts for six solar projects that account for about 2.84 MW of capacity. ANALYSIS Staff has recently discussed the program structure with a customer who is working on a residential development that consists of 100% affordable housing units and who intends to submit an application for a CLEAN solar project that would consume a significant portion of the remaining 160 kW of solar program capacity available at the 16.5 ¢/kWh rate. In order for this solar project to go forward, the customer requested that the CLEAN program rules be modified Item 10 Item 10 Staff Report        Item 10: Staff Report Pg. 2  Packet Pg. 290 of 389  to extend the project completion deadline to align with the City’s permitting and construction timeline for housing developments, from the current one-year timeline to up to three years. Making this modification to the CLEAN program – while maintaining the same contract rate and program capacity available at this rate – would have virtually no financial impact on the City. As such, staff supports the customer’s request, and the proposed program changes are designed to accommodate that request. Council action will also update the avoided costs for CLEAN projects for the first time since 2017. This change would result in no financial impact to the City. FISCAL/RESOURCE IMPACT The following table summarizes staff’s estimates of the current cost of buying energy from solar resources outside of Palo Alto (including transmission and capacity) over a 15-year, 20-year, or 25-year term, as well as the annual excess costs of purchasing the output from an additional 160 kW of local solar projects at a contract price of 16.5 ¢/kWh over those terms. (For non-solar renewable energy projects, and for solar capacity that exceeds the 3 MW program cap on the 16.5 ¢/kWh contract rate the excess cost is zero, because the contract rate is set based on the City’s avoided cost for the energy.) Contract Term Contract Rate Avoided Cost Annual Excess Cost 15 years 9.5 ¢/kWh $24,500 20 years 9.8 ¢/kWh $23,500 25 years 16.5 ¢/kWh 10.2 ¢/kWh $22,000 STAKEHOLDER ENGAGEMENT In considering the proposal to extend the completion deadline for certain projects in the CLEAN Program, staff has had multiple conversations with the customer who requested this modification about the impact it would have on their affordable housing development as well as the future residents of this development. Utilities staff also consulted with Planning and Development Services staff with regard to the City’s affordable housing standards and the typical timeline for completion of new residential housing developments. Finally, Utilities discussed the CLEAN Program modifications recommended here with the Utilities Advisory Commission (UAC) at their meeting on March 14, 2024. The UAC’s feedback is summarized in a supplemental memo to this report. ENVIRONMENTAL REVIEW Adoption of the attached resolution and the associated amendment of the CLEAN Program Eligibility Rules and Requirements and Power Purchase Agreement is not subject to California Environmental Quality Act (CEQA) review these are administrative government activities that will not result in any direct or indirect physical change to the environment as a result (CEQA Guidelines section 15378(b)(5)). Eligible customer projects are subject to CEQA analysis on a project-level basis through the City’s development permitting process. Item 10 Item 10 Staff Report        Item 10: Staff Report Pg. 3  Packet Pg. 291 of 389  ATTACHMENTS Attachment A: Palo Alto CLEAN Program Rules & Requirements (redline) Attachment B: Palo Alto CLEAN Program Handbook (redline) Attachment C: Palo Alto CLEAN Program Power Purchase Agreement (redline) APPROVED BY: Dean Batchelor, Director of Utilities Staff: James Stack, Ph.D., Senior Resource Planner Item 10 Item 10 Staff Report        Item 10: Staff Report Pg. 4  Packet Pg. 292 of 389  PALO ALTO CLEAN (CLEAN LOCAL ENERGY ACCESSIBLE NOW) PROGRAM ELIGIBILITY RULES AND REQUIREMENTS Effective __________ 3 3 8 1 A. PARTICIPATION ELIGIBILITY: The Palo Alto Clean Local Energy Accessible Now Program (the “CLEAN Program”) is open to participation by any Eligible Renewable Energy Resource, as defined in Section D.4, that satisfies these Program Eligibility Rules and Requirements. In order to be eligible to participate in the CLEAN Program, an Eligible Renewable Energy Resource must be located in and generating electricity from within the utility service area of the City of Palo Alto. The following purchase prices shall apply to the electricity produced by an Eligible Renewable Energy Resource participating in the Program, except as provided in Section D.5. Solar Energy Resources: Total Solar Capacity Reserved Contract Term Contract Price 0-3 MW 15, 20 or 25 years $0.165 / kWh More than 3 MW 15 years $0.088095 / kWh More than 3 MW 20 years $0.089098 / kWh More than 3 MW 25 years $0.091102 / kWh For Solar Energy Resources that straddle multiple pricing tiersmore than one capacity tier, the purchase price shall receivebe a weighted- average purchase priceof the above values based on the amount of their capacity that is contained in each tier. Non-Solar Eligible Renewable Energy Resources: Contract Term Contract Price 15 years $0.083094 / kWh 20 years $0.084098 / kWh 25 years $0.085101 / kWh 1. The owner of the Eligible Renewable Energy Resource shall enter into an Eligible Renewable Energy Resource Power Purchase Agreement (“PPA”) with the City of Palo Alto prior to delivering energy to the City. 2. An application for participation in the CLEAN Program to sell output to the City (the Item 10 Attachment A - Palo Alto CLEAN Program Rules & Requirements (redline)        Item 10: Staff Report Pg. 5  Packet Pg. 293 of 389  PALO ALTO CLEAN (CLEAN LOCAL ENERGY ACCESSIBLE NOW) PROGRAM ELIGIBILITY RULES AND REQUIREMENTS Effective __________ 3 3 8 1 “Application”) may be submitted at any time. Applications will be considered in the order received. 3. Eligible Renewable Energy Resource means an electric generating facility that: (a) is defined and qualifies as an “eligible renewable energy resource” under California Public Utilities Code Section 399.12(e) and California Public Resources Code Section 25471, respectively, as amended; and (b) meets the territoriality requirement set forth in Section B. 4. The California Energy Commission’s (“CEC”) certification of the Eligible Renewable Energy Resource shall be required within six (6) months of the commercial operation date of the generating facility; the facility’s owner shall provide written notice of the CEC’s certification to the City within ten (10) business days of receipt of said certification. If the City agrees, in its sole discretion, to take delivery of the generating facility’s electricity prior to the CEC’s certification, then, as the facility’s electricity cannot be considered in fulfillment of the City’s RPS requirements, the price that the City will pay for the generating facility’s electricity (the “Pre-Certification Price”) will be set to $0.072 per kWh (for a 15-year contract term), $0.076 per kWh (for a 20-year contract term)), or $0.08 per kWh (for a 25-year contract term), based on the City’s estimated levelized cost of browngeneric power over a 15-year, 20-year, or 25-year period, respectively. Upon the CEC’s certification of the generating facility and the provision of notice of such certification to the City in accordance with this section, the City will pay the Price set forth in Section C of these CLEAN Program Rules and Requirements and the PPA (collectively referred to as the “Contract Price”) for the generating facility’s electricity delivered on and after the date of the CEC’s certification. The City will, in its sole discretion, “true-up”, as appropriate, the difference between the Contract Price and the Pre-Certification Price for any electricity received and paid for by the City, effective as of the date of certification of the Eligible Renewable Energy Resource. 5. If an Eligible Renewable Energy Resource is authorized to participate in the CLEAN Program, then that Resource shall not be entitled to receive any rebate or other incentive from the City’s Photovoltaic (PV) Partners Program or any other similar incentive program funded by the City’s ratepayers. To the extent any rebate or incentive is paid to the owner of the Resource, that rebate or incentive shall be disgorged and refunded to the City upon 30 days’ notice, if the Eligible Renewable Energy Resource continues to participate in the CLEAN Program. If a rebate or an incentive has been paid to the Eligible Renewable Energy Resource, then that Resource shall be ineligible to participate in the CLEAN Program. 6. All electricity generated by the Eligible Renewable Energy Resource shall be delivered only to the City. No portion of the electricity may be used to offset any load of the generating facility (other than incidental loads associated with operating the generating facility). 7. A metering and administration fee will be charged to each Eligible Renewable Energy Item 10 Attachment A - Palo Alto CLEAN Program Rules & Requirements (redline)        Item 10: Staff Report Pg. 6  Packet Pg. 294 of 389  PALO ALTO CLEAN (CLEAN LOCAL ENERGY ACCESSIBLE NOW) PROGRAM ELIGIBILITY RULES AND REQUIREMENTS Effective __________ 3 3 8 1 Resource that participates in the CLEAN Program. See Utilities Rate Schedule E-15 (Electric Service Connection Fees). Item 10 Attachment A - Palo Alto CLEAN Program Rules & Requirements (redline)        Item 10: Staff Report Pg. 7  Packet Pg. 295 of 389  PALO ALTO CLEAN CLEAN LOCAL ENERGY ACCESSIBLE NOW PROGRAM HANDBOOK City of Palo Alto Utilities March 2024 Item 10 Attachment B - Palo Alto CLEAN Program Handbook (redline)        Item 10: Staff Report Pg. 8  Packet Pg. 296 of 389  Questions about Palo Alto CLEAN? Contact: Palo Alto CLEAN Program Manager Ph: 650-329-2241 Email: PACLEAN@cityofpaloalto.org City of Palo Alto Utilities 250 Hamilton Ave, 3rd Floor Palo Alto, CA 94301 Item 10 Attachment B - Palo Alto CLEAN Program Handbook (redline)        Item 10: Staff Report Pg. 9  Packet Pg. 297 of 389  Table of Contents Table of Contents ................................................................................................................ 3 Program Overview .............................................................................................................. 4 Summary of Program Rules ................................................................................................ 4 Timeline of a Palo Alto CLEAN Project ................................................................................ 6 Development of Palo Alto CLEAN Projects ......................................................................... 8 1.0 Site Identification and Control ............................................................................ 8 1.1 Types of Projects Accepted.............................................................................. 8 1.2 Proof of Site Control ........................................................................................ 8 2.0 Application Process ............................................................................................. 8 2.1 Submittal Process ............................................................................................ 8 2.2 Where and When to Submit ............................................................................ 8 2.3 Submittal Requirements .................................................................................. 9 2.4 Reservation Deposit ......................................................................................... 9 2.5 Determining Priority ...................................................................................... 10 3.0 Permitting ......................................................................................................... 11 3.1 Time to Complete Project .............................................................................. 11 3.2 Permit Submittal ............................................................................................ 11 3.3 Interconnection Review ................................................................................. 11 4.0 Construction ...................................................................................................... 12 4.1 Building Inspection ........................................................................................ 12 4.2 CEC Pre-Certification...................................................................................... 12 4.3 WREGIS Registration ...................................................................................... 12 5.0 Commercial Operation ...................................................................................... 13 5.1 Meter Set and Commercial Operation Date .................................................. 13 5.2 CEC Certification ............................................................................................ 13 5.3 Metering and Payment .................................................................................. 13 Additional Resources ........................................................................................................ 14 Item 10 Attachment B - Palo Alto CLEAN Program Handbook (redline)        Item 10: Staff Report Pg. 10  Packet Pg. 298 of 389  Palo Alto CLEAN Program Handbook Revised March 2024 Page 4 of 14 Program Overview Palo Alto CLEAN (Clean Local Energy Accessible Now) is a program to purchase electricity generated by eligible renewable energy resources located in City of Palo Alto Utilities (CPAU) service territory, which coincides with the Palo Alto city boundaries. The power is separately metered and delivered wholesale to CPAU, and it is then used to fulfill CPAU’s renewable goals. Programs like this are also known as "feed-in tariff" programs in reference to the fact that the power is "fed into" the electric grid. None of the power is used to offset the host customer’s load, in contrast to a net metering program. The program was adopted in March 2012, and was revised in January 2013, February 2014, May 2015, March 2016, February 2017, May 2017, and March 2024. CPAU is currently offering to purchase the output from renewable energy generation facilities according to the rates in the following table. Resource Description Contract Term Contract Rate Non-solar resources As shown in the table, there is no total program cap on the capacity participating in the program; there is only a cap on the solar capacity that can receive the 16.5 ¢/kWh contract rate. CPAU staff will review and re-evaluate the program status, terms, and contract rates with the Palo Alto City Council on a regular basis. Summary of Program Rules  CPAU will sign power purchase agreements (PPAs) for the output of eligible renewable energy generation facilities.  There is no total program capacity limit. Item 10 Attachment B - Palo Alto CLEAN Program Handbook (redline)        Item 10: Staff Report Pg. 11  Packet Pg. 299 of 389  Palo Alto CLEAN Program Handbook Revised March 2024 Page 5 of 14  Each PPA will entitle CPAU to the entire output of the generating facility, including all energy, renewable energy credits (RECs), and capacity attributes, if any.  The energy from the generating facility must be delivered to CPAU. No part of the energy may be used to serve the customer load on the host site or any other customer load.  Generating facilities must be located in the CPAU service territory (which corresponds to the Palo Alto city limits).  Generating facilities required by the California Independent System Operator (CAISO) to participate in ISO markets (typically those facilities larger than 1 MW) are subject to additional scheduling and forecasting requirements.  There are no limitations on how many generating facilities any single developer or customer may develop.  Developers are responsible for obtaining CEC Certification. RECs from the project will be created and tracked in the Western Renewable Energy Generation Information System (WREGIS). CPAU will register each generator under the CPAU WREGIS account and will be responsible for uploading meter data.  Project developers may not seek other CPAU ratepayer-funded rebates for the generating facility. Any facility that has already received a rebate is not eligible for the program. Item 10 Attachment B - Palo Alto CLEAN Program Handbook (redline)        Item 10: Staff Report Pg. 12  Packet Pg. 300 of 389  Palo Alto CLEAN Program Handbook Revised March 2024 Page 6 of 14 Timeline of a Palo Alto CLEAN Project The chart below shows how you can expect your Palo Alto CLEAN project to progress: Site Identification Identify a site for your project. Site Control Obtain site control for the entire term of the PPA. Preliminary Design Develop a preliminary design for the project. Application Submittal Submit an application. Applications are accepted in the order received. Pay reservation deposit within ten days. Permit Submittal Prepare your project for Building Permit and Interconnection Submittal. Your permit application will be accepted at the City’s Development Center and routed to our Electric Engineering Division for interconnection review. Permit Review The Development Center and Electric Engineering Division will return initial comments. At this time, if the interconnection will require no significant review or costs, the Electric Engineering Division will send an interconnection agreement for your signature. If additional interconnection review is required, an Advance Engineering Fee may be required. Interconnection Agreement Upon receipt of the Interconnection Agreement you will be required to submit a deposit for any interconnection costs. At this time you may terminate your PPA instead of submitting the deposit and proceeding with interconnection. If you exercise this option your full reservation deposit will be returned, but not any permit review fees. Project Construction Following Building Permit issuance and signature of the Interconnection Agreement the applicant can proceed with project construction. At some point prior to completing construction CPAU recommends you apply for pre-certification of the project with the California Energy Commission (CEC) to ensure the entire output of the project is certified as eligible to fulfill Renewable Portfolio Standard (RPS) requirements starting on the Commercial Operation Date. Uncertified energy is not eligible for the full contract price. CPAU will commence registration of the project with WREGIS during this time. Commercial Operation Upon final building inspection CPAU will send a letter memorializing the commercial operation date. At this Item 10 Attachment B - Palo Alto CLEAN Program Handbook (redline)        Item 10: Staff Report Pg. 13  Packet Pg. 301 of 389  Palo Alto CLEAN Program Handbook Revised March 2024 Page 7 of 14 point CPAU will return your total reservation deposit or any smaller portion of the deposit you are eligible to receive. CPAU will begin sending payments for energy produced, but the payments will be made at the pre- certification rate until the CEC certifies the project as eligible to fulfill RPS requirements. Item 10 Attachment B - Palo Alto CLEAN Program Handbook (redline)        Item 10: Staff Report Pg. 14  Packet Pg. 302 of 389  Palo Alto CLEAN Program Handbook Revised March 2024 Page 8 of 14 Development of Palo Alto CLEAN Projects 1.0 Site Identification and Control 1.1 Types of Projects Accepted All projects must be eligible renewable energy resources. There are no limitations on the type of solar technology used to receive the contract price for solar resources. The eligible renewable energy generating facility may be located anywhere in Palo Alto city limits so long as it complies with all City codes and generator interconnection requirements. Ground mounted, rooftop mounted, or carport solar projects are acceptable, but CPAU recommends you investigate the codes and requirements applicable to your site prior to submitting an application. 1.2 Proof of Site Control Evidence of site control for the entire term of the contract is required in order to submit an application. CPAU requires documentation showing ownership of, a leasehold interest in, or a right to develop property upon which the Generating Facility will be located for the entire term of the contract being requested, or an option to acquire such ownership, leasehold interest, or right to develop. 2.0 Application Process 2.1 Submittal Process Applications will only be accepted by e-mail, and must be sent to PACLEAN@cityofpaloalto.org. Applications will be considered in the order received. 2.2 Where and When to Submit The application is considered “submitted” on the date and time CPAU has received all required documents in Section 2.3, below, with the exception of the reservation deposit, which must be paid within ten business days following application submittal. See Section 2.4, below, for instructions on how to submit a reservation deposit. If the deposit is not received by the end of the tenth business day, the application will be rejected. Please note that the maximum attachment size accepted by the City’s e-mail system is 20 MB. To ensure your application is accepted, we recommend sending attachments no larger than 10 MB. If it is necessary to send multiple e-mails to send all of the application materials, please note that fact in your first e-mail. The time and date of the first e-mail will be considered the time and date your application was submitted so long as all application materials are received within two hours of that e-mail. CPAU will notify applicants of their application’s status by e-mail within five business days, and will mail a copy of the executed PPA within ten business days of receipt of the reservation deposit (see Section 2.4, below). Item 10 Attachment B - Palo Alto CLEAN Program Handbook (redline)        Item 10: Staff Report Pg. 15  Packet Pg. 303 of 389  Palo Alto CLEAN Program Handbook Revised March 2024 Page 9 of 14 2.3 Submittal Requirements All of the following items are required before an application will be considered “submitted,” with the exception of the reservation deposit, which must be paid within ten business days of the submittal date of the application:  Applicant, system owner, and site owner contact information.  Description of the generating system  Preliminary single-line diagram  Preliminary site diagram showing the project site and layout  Two signed copies of the Palo Alto CLEAN standard Power Purchase Agreement  Proof of site control (see 1.2, above)  Two signed copies of the WREGIS Assignment of Registration Rights Agreement (see 4.3, below)  Federal Internal Revenue Service Form W-9  Reservation deposit (see 2.4, below) 2.4 Reservation Deposit The reservation deposit must be paid within ten business days of application submittal. The preferred method for submitting a reservation deposit is a certificate of deposit payable to the City of Palo Alto, but submitting a payment by check or wire transfer is also acceptable. Item 10 Attachment B - Palo Alto CLEAN Program Handbook (redline)        Item 10: Staff Report Pg. 16  Packet Pg. 304 of 389  Palo Alto CLEAN Program Handbook Revised March 2024 Page 10 of 14  Check: Checks should be made out to the City of Palo Alto and may be submitted by mail to: City of Palo Alto, Attn: PA CLEAN Utilities RMD, 3rd Floor 250 Hamilton Ave Palo Alto, CA 94301 or in person at the Revenue Collections Desk in the lobby of the Civic Center at 250 Hamilton Ave, Palo Alto, CA during normal business hours.  Wire Transfer: To submit by wire transfer, send notification of the payment to both PACLEAN@cityofpaloalto.org and TreasuryNotice2@cityofpaloalto.org. The City’s wire transfer information is as follows: Bank Name: Wells Fargo Bank, N.A. Bank Routing (RTN/ABA) Number: 121 000 248 Account Number: 412 107 6145 Beneficiary Account Name: City of Palo Alto Type of Account: Checking Bank Address, City, State: 420 Montgomery Street, San Francisco, CA 94104 Federal Tax ID #: 94 6000 389 For International Transfer Only: International SWIFT BIC WFBIUS6S The deposit will be returned:  If, for whatever reason, CPAU is unable to accept the application.  Upon early termination of the PPA by the applicant prior to Commercial Operation Date, subject to the rules regarding such early termination in Section 7.0 of the PPA.  Upon the commercial operation date of the project, subject to the rules regarding timely completion of the project in Section 7.0 of the PPA. 2.5 Determining Priority Applications are accepted in the order received based on the date and time stamp of the e-mailed application received by the City at paclean@cityofpaloalto.org. In the event multiple applications are received simultaneously, all will be assigned an application number and precedence will be established by the use of the random number generator at random.org, or another publicly verifiable random number generator in the event random.org is not available. Item 10 Attachment B - Palo Alto CLEAN Program Handbook (redline)        Item 10: Staff Report Pg. 17  Packet Pg. 305 of 389  Palo Alto CLEAN Program Handbook Revised March 2024 Page 11 of 14 For the purpose of determining whether applications were received simultaneously, applications will be considered received based on the date and time stamp on the e-mail. If multiple copies of the same application are received, the time stamp on the first e- mail received will be used. The time stamp on the City’s e-mail system shows the hour, minute, and second the e-mail was received. 3.0 Permitting 3.1 Time to Complete Project Applicants have one year from the execution date of the PPA to achieve Commercial Operation for the proposed project, or three years from the PPA execution date if the project site is a new residential construction development that satisfies the basic affordable housing requirement for residential ownership projects under Palo Alto Municipal Code section 16.65.030. If Commercial Operation is achieved after that time, the amount of the Reservation Deposit returned is reduced for each full week the project is delayed (see Section 5.1 and Section 7.0 of the PPA). If Commercial Operation has not been achieved by ten weeks after the applicable deadline to complete the project, CPAU retains the option to terminate the PPA. 3.2 Permit Submittal Applicants apply for a building permit and interconnection agreement at the City’s Development Center. The Building Division manages the routing of applications for review by all necessary departments. Consult the City’s Building Division with questions about building permit requirements and the project review process. The Division maintains pre-submittal and inspection checklists that detail the City’s code requirements. Visit the City’s website (http://www.cityofpaloalto.org/gov/depts/ds/default.asp) for the most recent versions of these checklists. The City’s Planning Division typically does not review rooftop solar projects, but if a project will involve landscape changes or carport or ground mounted solar systems, the applicant should consult the Planning Division to understand the code requirements applicable to the proposed project site. 3.3 Interconnection Review Upon receipt of a project application routed from the City’s Building Division, the Electric Engineering Division will review the project to determine whether it qualifies for simplified review or whether supplemental review or an interconnection study is required. If the project qualifies for simplified review the Electric Engineering Division will send the applicant an Interconnection Agreement for signature. If the project does not qualify, the applicant must pay an Advance Engineering Fee for additional evaluation work. Once the additional review is complete the Electric Engineering Division will send the applicant an Interconnection Agreement with an Item 10 Attachment B - Palo Alto CLEAN Program Handbook (redline)        Item 10: Staff Report Pg. 18  Packet Pg. 306 of 389  Palo Alto CLEAN Program Handbook Revised March 2024 Page 12 of 14 estimate of any additional interconnection costs. Upon receiving the interconnection agreement the applicant may either 1) execute and return the interconnection agreement along with payment for any additional estimated interconnection costs, or 2) notify CPAU in writing that the applicant is terminating the agreement. If this notification is received within 30 calendar days of the day CPAU notifies the applicant of the interconnection costs, the reservation deposit will be returned in full per Section 7.0 of the PPA. No portion of the building permit fees or Advance Engineering Fees will be returned. See Utility Rule and Regulation 27 (Generator Interconnection) for more detail on the interconnection process. 4.0 Construction 4.1 Building Inspection Consult the City’s Building Division with questions about the building inspection process. The Division maintains inspection checklists that detail the City’s code requirements. If there are any interconnection facilities to be constructed CPAU will build those facilities during the construction process. Once construction is completed and actual costs are known, CPAU will issue a final invoice for the interconnection facilities. CPAU may require the applicant to make an additional payment to the extent actual costs differ from the estimated costs. 4.2 CEC Pre-Certification CPAU recommends that the applicant apply for pre-certification of the project from the California Energy Commission (CEC) at some point prior to Commercial Operation. Once the generating facility is completed the applicant must apply for CEC certification (see Section 5.2, below), and pre-certification ensures that certification will begin on the Commercial Operation Date, meaning that all energy output will be certified as eligible to fulfill Renewable Portfolio Standard (RPS) requirements. Per Section 2.4 of the PPA, CPAU will pay for any energy not certified by the CEC at the “Pre-Certification Price” rather than the contract price. See form CEC-RPS-1 published by the CEC for instructions on how to apply. 4.3 WREGIS Registration During the construction process CPAU will begin registration of the project in WREGIS (the Western Renewable Energy Generation Information System). The system owner is required to assign to CPAU the right to register the project in WREGIS when submitting an application to the Palo Alto CLEAN program. This will enable CPAU to receive Renewable Energy Credits (RECs) from the system directly in its WREGIS account rather than having to execute a transfer of RECs each month. CPAU will be responsible for uploading the meter data to WREGIS each month to enable creation of the RECs. Item 10 Attachment B - Palo Alto CLEAN Program Handbook (redline)        Item 10: Staff Report Pg. 19  Packet Pg. 307 of 389  Palo Alto CLEAN Program Handbook Revised March 2024 Page 13 of 14 5.0 Commercial Operation 5.1 Meter Set and Commercial Operation Date The Commercial Operation Date for the generator is the date of the final building inspection by the City’s Building Division. Prior to that CPAU’s Electric Meter Shop will set a revenue meter that will be used for billing. Following the final inspection CPAU will send the applicant a letter memorializing the Commercial Operation Date, and the applicant must return a signed copy to CPAU. This letter is required before CPAU can complete WREGIS registration (see Section 4.3 above). WREGIS registration is a prerequisite for CEC Certification (see Section 5.2 below). At this time CPAU will return the entire reservation deposit or any portion of that deposit that the applicant is entitled to under Section 7.0 of the PPA. 5.2 CEC Certification Within six months following the Commercial Operation Date the applicant is required to have the system certified by the California Energy Commission as eligible to fulfill Renewable Portfolio Standard (RPS) requirements. CPAU will pay for the output of the system at the pre-certification price until this certification is granted (see Section 2.4 of the PPA). Typically CEC Certification is retroactive to the Commercial Operation Date if 1) the applicant has obtained CEC Pre-Certification for the project (see Section 4.2 above) or 2) the applicant has submitted an application for CEC Certification prior to the commercial operation date. If CPAU receives energy prior to certification and pays for it at the Pre- Certification Price, and that energy is later certified by the CEC as eligible to fulfill RPS requirements, CPAU will issue a true-up equal to the difference between the Pre- Certification Price and the Contract Price upon CEC certification. See also Sections 2.4 and 3.1 of the PPA, as well as form CEC-RPS-1 published by the CEC. 5.3 Metering and Payment Payment for the project output will be made monthly by check based on a City-provided revenue meter. The applicant will be responsible for the cost associated with the meter’s telemetry system. Item 10 Attachment B - Palo Alto CLEAN Program Handbook (redline)        Item 10: Staff Report Pg. 20  Packet Pg. 308 of 389  Palo Alto CLEAN Program Handbook Revised March 2024 Page 14 of 14 Additional Resources Palo Alto CLEAN program website https://www.cityofpaloalto.org/Departments/Utilities/Business/Ways-to-Save/CLEAN City of Palo Alto Utilities Electric Engineering and Operations https://www.cityofpaloalto.org/Departments/Utilities/Utilities-Services-Safety/Engineering-and-Operations City of Palo Alto Utilities Rule and Regulation 27 (Generator Interconnection) https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=28741 City of Palo Alto Utilities Electric Standard Drawings https://www.cityofpaloalto.org/Departments/Utilities/Utilities-Services-Safety/Engineering-and- Operations/Electric-Service-Requirements City of Palo Alto Development Services http://www.cityofpaloalto.org/gov/depts/ds/default.asp California Energy Commission Renewables Portfolio Standard Handbook and Generator Certification Application Forms https://www.energy.ca.gov/programs-and-topics/programs/renewables-portfolio-standard/renewables-portfolio- standard-0 Western Renewable Energy Generation Information System (WREGIS) https://www.wecc.org/WREGIS/Pages/Default.aspx Item 10 Attachment B - Palo Alto CLEAN Program Handbook (redline)        Item 10: Staff Report Pg. 21  Packet Pg. 309 of 389  040914 jrm 0180042 1 POWER PURCHASE AGREEMENT ELIGIBLE RENEWABLE ENERGY RESOURCE (Palo Alto Clean Local Energy Accessible Now Program) This Power Purchase Agreement - Eligible Renewable Energy Resource, dated, for convenience, (the “Effective Date”), is entered into by and between the CITY OF PALO ALTO, a California chartered municipal corporation, and , a corporation (individually, a “Party” and, collectively, the “Parties”). RECITALS 1. The Buyer has adopted and implemented its CLEAN Program, which allows an owner of a qualifying electric generation system to sell to the Buyer the power output of a small-scale distributed generation Eligible Renewable Energy Resource, subject to the CLEAN Program’s rules and requirements. 2. The Seller owns or operates and desires to interconnect its Facility in parallel with Buyer’s Distribution System and sell the Energy produced by its Facility, net of Station Service Load, directly to the Buyer in furtherance of the CLEAN Program. 3. The Parties do not intend this Agreement to constitute an agreement by the Buyer to provide retail electrical service to the Seller. 4. The Parties wish to enter into a power purchase agreement for the sale and purchase of the Output of the Facility. The Parties will enter into a separate “Interconnection Agreement” in connection with this Agreement. NOW THEREFORE, in consideration of the foregoing recitals and the following covenants, terms and conditions, the Parties agree, as follows: AGREEMENT 1.1 DEFINITIONS The initially capitalized terms, whenever used in this Agreement, have the meanings set forth below, unless they are otherwise herein defined. The terms “include,” “includes,” and “including,” when used in this Agreement, shall mean, respectively, “include, without limitation,“ “includes, without limitation” and “including, without limitation.” “Affordable Housing Development” means a new residential construction development that satisfies the basic affordable housing requirement for residential ownership projects under Palo Alto Municipal Code section 16.65.030. “Agreement” means this Power Purchase Agreement – Eligible Renewable Energy Resource between the Buyer and the Seller. “Business Day” means any day except a Saturday, Sunday, or a day that the City observes as a regular holiday under Palo Alto Municipal Code section 2.08.100(a). “Buyer” refers to the City of Palo Alto, California, with a principal place of business at 250 Hamilton Avenue, Palo Alto, California 94301. “Buyer’s Distribution System” means the wires, transformers, and related equipment used by the Buyer to deliver electric power to the Buyer’s retail customers, typically at sub-transmission level voltages or lower. “CAISO” means the California Independent System Operator Corporation, or successor entity. “CAISO Tariff” means the CAISO FERC Electric Tariff, as amended. Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 22  Packet Pg. 310 of 389  040914 jrm 0180042 2 “Capacity” means the ability of a generator at any given time to produce Energy at a specified rate, as measured in megawatts (“MW”) or kilowatts (“kW”), and any reporting rights associated with it. “Capacity Attributes” means any current or future defined characteristic, certificate, tag, credit, or ancillary service attribute, whether general in nature or specific as to the location or any other attribute of the Facility, intended to value any aspect of the Contract Capacity of the Facility to produce Energy or ancillary services, including contributions towards Resource Adequacy (including those requirements defined in Section 40 of the CAISO Tariff) or reserve requirements (if any), and any other reliability or power attributes. “CEC” means the California Energy Resources Conservation and Development Commission, or successor agency. “Certificate of RPS Eligibility” means a certificate issued by the CEC as evidence of RPS Certification of the Facility. “City” means the government of the City of Palo Alto, California. “CLEAN Program” refers to the Palo Alto Clean Local Energy Accessible Now Program, a renewable energy program established by the City by adoption of resolution number , dated , of the Palo Alto City Council, whereby the Buyer will purchase from the Seller the Output of Eligible Renewable Energy Resources that meet specified criteria set forth in the City’s applicable ordinances and resolutions. “Commercial Operation” means the period of operation of the Facility, once the Commercial Operation Date has occurred. “Commercial Operation Date” means the date specified in the Commercial Operation Date Confirmation Letter, which the Parties execute and exchange in accordance with this Agreement. “Contract Capacity” means the installed electrical Capacity available upon the Commercial Operation Date of the Facility in an amount, as specified in Exhibit “PPA-A.” “Contract Capacity” is measured at the Buyer’s revenue meter at the Delivery Point and is net of any Station Service Loads, any applicable Facility step-up transformer losses, and distribution losses on Buyer’s Distribution System up to the Delivery Point. “Contract Price” means the price paid by the Buyer to the Seller for the Output generated at the Facility and received by the Buyer, as set forth in Exhibit “PPA-A.” “CPUC” means the California Public Utilities Commission, or successor agency. “Delivery Point” means the point of interconnection to Buyer’s Distribution System, where the Buyer accepts title to the Output. “Delivery Term” has the meaning set forth in Section 14.2 hereof. “Eligible Renewable Energy Resource” means an electric generating facility that is defined and qualified as an “eligible renewable energy resource” under California Public Utilities Code Section 399.12(e) and California Public Resources Code Section 25471, respectively, as amended. “Energy” means electrical energy generated from the Facility and delivered to Buyer’s Distribution System with the voltage and quality required by the Buyer, and measured in megawatt-hours (“MWh”) or kilowatt- hours (“kWh”), as metered at the Delivery Point. “Facility” means the qualifying renewable energy generation equipment and associated power conditioning and interconnection equipment that deliver the Output to the Buyer at the Delivery Point. “FERC” means the Federal Energy Regulatory Commission, or successor agency. Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 23  Packet Pg. 311 of 389  040914 jrm 0180042 3 “Forced Outage” means an unplanned outage of one or more of the Facility’s components that results in a reduction of the ability of the Facility to produce Capacity. “Force Majeure” means an event or circumstance, which prevents a Party from performing its obligations under this Agreement, and which is not in the reasonable control of, or the result of negligence of, the Party claiming Force Majeure, and which by the exercise of due diligence is unable to overcome or cause to be avoided. “Force Majeure” shall include: (a) An act of nature, riot, insurrection, war, explosion, labor dispute, fire, flood, earthquake, storm, lightning, tidal wave, backwater caused by flood, act of the public enemy, terrorism, or epidemic; (b) Interruption of transmission or generation services as a result of a physical emergency condition (and not congestion-related or economic curtailment) not caused by the fault or negligence of the Party claiming Force Majeure and reasonably relied upon and without a reasonable source of substitution to make or receive deliveries hereunder, civil disturbances, strike, labor disturbances, labor or material shortage, national emergency, restraint by court order or other public authority or governmental agency, actions taken to limit the extent of disturbances on the electrical grid; or (c) Other similar causes beyond the control of the Party affected, which causes such Party could not have avoided by the exercise of due diligence and reasonable care. A Party's financial incapacity, the Seller’s ability to sell the Output at a more favorable price or under more favorable conditions, or the Buyer’s ability to acquire the Output at a more favorable price or under more favorable conditions or other economic reasons shall not constitute an event of Force Majeure. “Force Majeure” does not include a Forced Outage to the extent such event is not caused or exacerbated by an event of Force Majeure, as described above, and does not include the Seller’s inability to obtain financing, permits, or other equipment and instruments necessary to plan for, construct, or operate the Facility. “Good Utility Practice” means those practices, methods and acts that would be implemented and followed by prudent operators of electric energy generating facilities in the western United States, similar to the Facility, during the relevant time period, which practices, methods and acts, in the exercise of prudent and responsible professional judgment in the light of the facts known at the time the decision was made, could reasonably have been expected to accomplish the desired result consistent with good business practices, reliability, and safety. The Seller acknowledges that its use of Good Utility Practice does not exempt it from performing any of its obligations arising under this Agreement. “Good Utility Practice” includes, at a minimum, those professionally responsible practices, methods and acts described in the preceding paragraph that comply with manufacturers’ warranties, restrictions in this Agreement, the interconnection requirements of Buyer, the requirements of governmental authorities, and WECC and NERC standards. “Good Utility Practice” also includes the taking of reasonable steps to ensure that: (a) Equipment, materials, resources, and supplies, including spare parts inventories, are available to meet the Facility’s needs; (b) Sufficient operating personnel are available at all times and are adequately experienced and trained and licensed as necessary to operate the Facility properly and efficiently, and are capable of responding to reasonably foreseeable emergency conditions at the Facility and emergencies whether caused by events on or off the Facility’s site; (c) Preventive, routine, and non-routine maintenance and repairs are performed on a basis that ensures reliable, long-term and safe operation of the Facility, and are performed by knowledgeable, trained, and experienced personnel utilizing proper equipment and tools; (d) Appropriate monitoring and testing are performed to ensure equipment is functioning as designed; and (e) Equipment is not operated in a reckless manner, in violation of manufacturer’s guidelines or in a manner unsafe to workers, the general public, or the connecting utility’s electric system or contrary to environmental laws, permits or regulations or without regard to defined limitations such as, flood conditions, safety inspection requirements, operating voltage, current, volt ampere reactive (VAR) loading, frequency, rotational speed, polarity, synchronization, and control system limits; and equipment and components are designed and manufactured to meet or exceed the standard of durability that is generally used for electric energy generating facilities operating in the western United States and will function properly over the full range of ambient temperature and weather conditions reasonably expected to occur at the Facility site and under both normal and emergency conditions. Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 24  Packet Pg. 312 of 389  040914 jrm 0180042 4 “Green Attributes” refers to the definition set forth in the Standard Terms and Conditions, Appendix A-2, as amended, Decision D.07-02-011, as modified by D.07-05-057, of the CPUC, which incorporates the definition of “Environmental Attributes” set forth in the Standard Terms and Conditions, Appendix A-1, as amended, D. 04-06-014. “Green Attributes” includes any and all credits, benefits, emissions reductions, environmental air quality credits, offsets, and allowances, howsoever entitled, attributable to the generation from the Facility, and its displacement of conventional energy generation, whether existing now or arising in the future. “Green Attributes” includes RECs, as well as (1) any avoided emissions of pollutants to the air, soil or water, such as sulfur oxides (“SOx”), nitrogen oxides (“NOx”), carbon monoxide (“CO”) and other pollutants; (2) any avoided emissions of carbon dioxide (“CO2”), methane (“CH4”), nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and other greenhouse gases (“GHGs”) that have been determined by the United Nations Intergovernmental Panel on Climate Change, or otherwise by law, to contribute to the actual or potential threat of altering the Earth’s climate by trapping heat in the atmosphere; and (3) the reporting rights to these avoided emissions such as Green Tag Reporting Rights and RECs. “Green Tag Reporting Rights” are the right of a Green Tag Purchaser to report the ownership of accumulated Green Tags in compliance with federal or state law, if applicable, and to a federal or state agency or any other party at the Green Tag Purchaser’s discretion, and include those Green Tag Reporting Rights accruing under Section 1605(b) of the Energy Policy Act of 1992 and any present or future federal, state, or local law, regulation or bill, and international or foreign emissions trading program. Green Tags are accumulated on a kWh basis and one Green Tag represents the Green Attributes associated with one (1) MWh of Energy. “Green Attributes” do not include (i) any Energy, Capacity, reliability, or other power attributes of the Facility, (ii) production or investment tax credits associated with the construction or operation of the Facility and other financial incentives in the form of credits, grants, reductions, or allowances associated with the Facility that are applicable to a state or federal income taxation obligation, (iii) fuel-related subsidies or “tipping fees” that may be paid to Seller to accept certain fuels, or local subsidies received by the generator for the destruction of particular pre-existing pollutants or the promotion of local environmental benefits, or (iv) emission reduction credits encumbered, used or created by the Facility for compliance with or sale under local, state, or federal operating and/or air quality permits or programs. If the Facility is a biomass or landfill facility and the Seller receives any tradable Green Attributes based on the Facility’s greenhouse gas reduction benefits or other emission offsets attributed to its fuel usage, the Seller shall provide the Buyer with sufficient Green Attributes to ensure that there are zero net emissions associated with the production of electricity from the Facility. “Green Attributes” includes any other environmental credits or benefits recognized in the future and attributable to Energy generated by the Facility during the Term that may not be represented by Green Tag Reporting Rights or RECs, unless otherwise excluded herein. Any Green Attributes provided under this Agreement shall be documented by RECs, or any other representation of the environmental benefits of the Output, the monthly cumulative total of which shall be provided to the Buyer, as specified herein. “Interconnection Agreement” refers to the agreement between the Buyer and the Seller, specific to the interconnection of the Facility to Buyer’s Distribution System. “NERC” means the North American Electric Reliability Corporation, or successor organization. “NCPA” means Northern California Power Agency, a California joint action agency, or successor agency. “Output” means all Capacity associated with Contract Capacity and associated Energy made available from the Facility, as well as any Capacity Attributes, Green Attributes, or other attributes existing now or in the future associated with Contract Capacity and/or associated Energy. “Output” does not include production or investment tax credits associated with the construction or operation of the Facility and other financial incentives in the form of credits, grants, reductions, or allowances associated with the Facility that are applicable to a state or federal income taxation obligation. “Planned Outage” means an outage, scheduled in advance, of one or more of the Facility’s components that results in a reduction of the ability of the Facility to produce Capacity. Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 25  Packet Pg. 313 of 389  040914 jrm 0180042 5 “Pre-Certification Price” means the contract price to be paid for all Energy delivered to the Buyer prior to the RPS Certification Date, as specified in Exhibit “PPA-A”. “Renewable Energy Credit” or “REC” has the meaning set forth in Section 399.12(h)(1) and (2) of the California Public Utilities Code, and includes a certificate of proof that one unit of electricity was generated by an Eligible Renewable Energy Resource. Currently, RECs are used to convey all Green Attributes associated with electricity production by a renewable energy resource. RECs are accumulated on a kWh basis and one REC represents the Green Attributes associated with the generation of 1 MWh (1,000 kWhs) from the Facility. For purposes of this Agreement, the term REC shall be synonymous with the term Green Tag, green ticket, bundled or unbundled renewable energy credit, tradable renewable energy certificates, or any other term used to describe the documentation that evidences the renewable and Green Attributes associated with electricity production by an Eligible Renewable Energy Resource. “Renewables Portfolio Standard” or “RPS” means the standard adopted by the State of California pursuant to Senate Bill 2 1st Extraordinary Session (SBX1 2, Chapter 1, Statutes 2011-12), and California Public Utilities Code Sections 399.11through 399.31, inclusive, as may be amended, setting minimum renewable energy targets for local publicly owned electric utilities. “Reservation Deposit” means the monetary deposit submitted by the Seller (or the Facility sponsor on behalf of the Seller) to secure a reservation of the CLEAN Program’s prices. The Reservation Deposit is set forth in Exhibit “PPA-A.” “Resource Adequacy” means a requirement by a governmental authority or in accordance with its FERC- approved tariff, or a policy approved by a local regulatory authority, that is binding upon either Party and that requires that Party to procure a certain amount of electric generating capacity. “RPS Certification” means certification by the CEC that the Facility qualifies as an Eligible Renewable Energy Resource for RPS purposes, and that all Energy produced by the Facility qualifies as generation from an Eligible Renewable Energy Resource, as evidenced by a Certificate of RPS Eligibility. “RPS Certification Date” means the date on which the RPS Certification begins, as specified in the Certificate of RPS Eligibility. “Seller” means with a principal place of business at , , . “Station Service Load” means the electrical loads associated with the operation and maintenance of the Facility, which may at times be supplied from the Facility’s Energy. “Term” has the meaning set forth in Section 14.1 hereof. “WECC” means the Western Electricity Coordinating Council, the regional entity responsible for coordinating and promoting regional bulk electric system reliability in the Western Canada and the United States, or any successor organization. 2.0 SELLER’S GENERATING FACILITY, PURCHASE PRICE AND PAYMENT 2.1 Facility. This Agreement governs the Buyer’s purchase of the Output from the Facility, as described in Exhibit “PPA-A.” The Seller shall not modify the Facility to increase or decrease the Contract Capacity after the Commercial Operation Date. 2.2 Products Purchased. During the Delivery Term, the Seller shall sell and deliver, or cause to be delivered, and the Buyer shall purchase and receive, or cause to be received, the Output from the Facility. The Seller shall not have the right to procure the Output from sources other than the Facility for sale or delivery to the Buyer under this Agreement or to substitute the Output. Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 26  Packet Pg. 314 of 389  040914 jrm 0180042 6 2.3 Delivery Term. The Delivery Term shall commence on the Commercial Operation Date under this Agreement, and shall continue for an uninterrupted period of [fifteen (15), twenty (20), or twenty-five (25) years]. This period will commence on the first day of the calendar month immediately following the Commercial Operation Date. As evidence of the Commercial Operation Date, the Parties shall execute and exchange the “Commercial Operation Date Confirmation Letter,” attached hereto as Exhibit “PPA- B.” The Commercial Operation Date shall be the date on which the Parties acknowledge, in writing, that the Facility starts operating and is otherwise in compliance with applicable interconnection and system protection requirements, including the final approvals by the City’s building department official. 2.4 Payment for Products Purchased. 2.4.1 Deliveries Prior to RPS Certification Date. Once the Facility has achieved Commercial Operation, if the CEC has not issued a Certificate of RPS Eligibility for the Facility or the Facility has not been registered with the appropriate entity for the tracking of Green Attributes, the Buyer will pay the Seller for the Output by multiplying the Pre-Certification Price by the quantity of Energy. 2.4.2 Deliveries After RPS Certification Date. Once the Facility has achieved Commercial Operation, the CEC has issued a Certificate of RPS Eligibility for the Facility, and the Facility has been registered with the appropriate entity for the tracking of Green Attributes, the Buyer shall pay the Seller for all Output on or after the RPS Certification Date by multiplying the Contract Price by the quantity of Energy. 2.4.3 True-up Upon Issuance of Certificate of RPS Eligibility. Once the Facility has achieved Commercial Operation, the CEC has issued a Certificate of RPS Eligibility for the Facility, and the Facility has been registered with the appropriate entity for the tracking of Green Attributes, the Buyer will pay the Seller an amount equal to the difference between the Contract Price and the Pre-Certification Price for the Output (a) that was delivered on or after the RPS Certification Date and (b) for which the Seller has already received payment at the Pre- Certification Energy Price. 2.4.4 Energy in Excess of Contract Capacity. The Seller shall not receive payment for any Energy or Green Attributes delivered in any hour to the Buyer in excess of the following amount of energy (in kilowatt-hours): 110% of the Contract Capacity (in kilowatts) multiplied by one hour. Any payment in excess of this amount shall be refunded to the Buyer, on demand. 2.5 Billing. The Buyer shall pay the Seller by check or electronic funds transfer, on a monthly basis, within thirty (30) days of the meter reading date. 2.6 Title and Risk of Loss. Title to and risk of loss related to the Output shall be transferred from the Seller to the Buyer at the Delivery Point. The Seller warrants that it will deliver to the Buyer the Output free and clear of all liens, security interests, claims, encumbrances or any interest therein or thereto by any person, arising prior to the Delivery Point. 2.7 No Additional Incentives. The Seller warrants that it has not received any other incentives funded by the Buyer’s ratepayers and it further agrees that, during the Term, it shall not seek additional compensation or other benefits from the Buyer pursuant to the following programs of the Buyer: (a) Photovoltaic (PV) Partners Program; (b) Power from Local Ultra-Clean Generation Incentive (PLUG- In) Program; or (c) other similar programs that are or may be funded by the Buyer’s ratepayers. Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 27  Packet Pg. 315 of 389  040914 jrm 0180042 7 3.0 RPS CERTIFICATION; GREEN ATTRIBUTES 3.1 CEC Certification. The Seller, at its own cost and expense, shall obtain the RPS Certification within six (6) months of the Commercial Operation Date. The Seller shall maintain the RPS Certification at all times during the Delivery Term. The foregoing provision notwithstanding, the Seller shall not be in breach of this Agreement and the Buyer shall not have the right to terminate this Agreement, if the Seller’s failure to obtain or maintain the RPS Certification is due to a change in California law, occurring after the Commercial Operation Date, so long as the Seller has used commercially reasonable efforts to obtain and maintain the RPS Certification and the Seller’s actions or omissions did not contribute to its inability to obtain and maintain the RPS Certification. 3.2 Obligation to Deliver Green Attributes. The Seller shall sell and deliver to the Buyer, and the Buyer shall buy and receive from the Seller, all right, title, and interest in and to Green Attributes associated with Energy, produced by the Facility and delivered to the Buyer at the Delivery Point, whether now existing or that hereafter come into existence during the Term, except as otherwise excluded herein; provided, the Buyer shall not be obligated to purchase and pay the Seller for any Green Attributes associated with any amount of the Output, that is generated by any fuel which is not renewable and which cannot be counted for the purpose of the production of Green Attributes. The Seller agrees to sell and make all such Green Attributes available to the Buyer to the fullest extent allowed by applicable law, in accordance with the terms and conditions of this Agreement. The Seller warrants that the Green Attributes provided under this Agreement to the Buyer shall be free and clear of all liens, security interests, claims and encumbrances. 3.3 Conveyance of Green Attributes. The Seller shall provide Green Attributes associated with the Facility, which shall be documented and conveyed to the Buyer in accordance with the procedure described in Exhibit “PPA-D.” 3.4 Additional Evidence of Green Attributes Conveyance. At the Buyer’s request, the Seller shall provide additional reasonable evidence to the Buyer or to third parties of the Buyer’s right, title, and interest in the Green Attributes and any other information with respect to Green Attributes, as may be requested by the Buyer. 3.5 Modification of Green Attributes Conveyance Procedure. The Buyer may unilaterally modify Exhibit “PPA-D” in order to reflect changes necessary in the Green Attributes conveyance procedures, so that the Buyer may be able to receive and report the Green Attributes, purchased under this Agreement, as belonging to the Buyer. 3.6 Reporting of Ownership of Green Attributes. The Seller shall not report to any person or entity that the Green Attributes sold and conveyed to the Buyer belong to any person other than the Buyer. The Buyer may report under any applicable program that Green Attributes purchased by the Buyer hereunder belong to it. 3.7 Greenhouse Gas Emissions. The Seller shall comply with any laws and/or regulations regarding the need to offset emissions of GHGs by delivering to the Buyer the Energy from the Facility with a net zero GHG impact. 4.0 CONVEYANCE OF CAPACITY ATTRIBUTES 4.1 Conveyance of Resource Adequacy Capacity. The Seller shall not report to any person or entity that the Resource Adequacy Capacity, as defined in the CAISO Tariff) associated with the Facility, if any, belongs to a person other than the Buyer, which may report that Resource Adequacy Capacity purchased hereunder belongs to it to fulfill the Resource Adequacy requirements, as defined in Section 40 of the CAISO Tariff, as amended, or any successor program. The Seller shall take those actions described in Section 6.0 hereof, as applicable, to secure recognition of Resource Adequacy Capacity by the CAISO. 4.2 Conveyance of Other Capacity Attributes. In addition to the obligations imposed on the Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 28  Packet Pg. 316 of 389  040914 jrm 0180042 8 Seller under Section 4.1, the Seller will undertake any and all actions reasonably needed to enable the Buyer to effect the recognition and transfer of any Capacity Attributes in addition Resource Adequacy, to the extent that such Capacity Attributes exist now or will exist in the future; provided, if such actions require any actions beyond the giving of notice by the Seller, then the Buyer shall reimburse all out-of- pocket costs and charges of such actions. 4.3 Reporting of Ownership of Capacity Attributes. The Seller shall not report to any person or entity that the Capacity Attributes sold and conveyed to the Buyer belong to any person other than the Buyer. The Buyer may report under any such program that such Capacity Attributes purchased hereunder belong to it. 5.0 METERING AND OPERATIONS 5.1 Timing of Outages. The Seller may not schedule or take any Planned Outage from 12:00 p.m. through 7:00 p.m. Pacific Time during the months of June through October. 5.2 Outage Reporting. 5.2.1 Buyer Request. The Seller is not required to report any Planned Outage or Forced Outage, unless the Buyer first submits a written request to the Seller to commence Outage reporting. Upon receipt of such a request, the Seller shall report all subsequent Planned Outages and the Forced Outages according to the procedures described in subsections 5.2.2 and 5.2.3, and shall continue such reporting until (a) the termination of this Agreement for any reason, or (b) the Buyer subsequently provides written notice to the Seller that the Seller may cease such reporting in the future. 5.2.2 Planned Outage Notifications. The Seller shall notify the Buyer at least 72 hours in advance of any Planned Outage that would result in a reduction in the effective Output of the Facility during the period over which the Planned Outage is scheduled. Notification shall be provided by e-mail to the e-mail address (or addresses) set forth in Exhibit “PPA-F.” 5.2.3 Forced Outage Notifications. Within 24 hours of the occurrence of a Forced Outage of the Facility that impacts the ability of the Facility to produce Energy, the Seller shall notify the Buyer of the Forced Outage, including the Capacity of the Facility that is impacted, and the expected duration of the Forced Outage. Within 24 hours of the return of the Facility to service following the Forced Outage, the Seller shall notify the Buyer of the return-to-service details. Notification shall be made by e-mail to the address (or addresses) set forth in Exhibit “PPA-F.” 5.3 Metering. The Buyer shall furnish and install one or more standard watt-hour meters to read Energy generated by the Facility, and it will charge a meter fee to the Seller to cover the costs associated with the meter’s purchase and installation. As requested, the Seller shall provide and install a meter socket in accordance with the Buyer’s metering standards. The Buyer reserves the right to install additional metering equipment at its sole cost and expense. 6.0 PARTICIPATING GENERATORS 6.1 Applicability. This Section 6.0 shall apply if the Facility meets the definition of a “Participating Generator,” as may be defined by the CAISO Tariff. This Section 6.0 shall not apply if the definition applies to the Facility only upon the election by the Seller. For the purposes of this Section 6.0, all special terms not otherwise defined in Section 1.0 are defined in the CAISO Tariff. 6.2 Participating Generator Agreement. The Buyer will notify the CAISO of the Seller’s interconnection to Buyer’s Distribution System. If the CAISO requires it, the Seller, at its own expense, shall negotiate and enter in to two contracts, a “Participating Generator Agreement” and a “Meter Services Agreement for CAISO Metered Entities,” with the CAISO. Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 29  Packet Pg. 317 of 389  040914 jrm 0180042 9 6.3 Scheduling Coordination. If the CAISO requires the Seller to enter in to a Participating Generator Agreement, then the Seller shall designate NCPA as the Buyer’s scheduling coordinator. The Buyer, acting in its sole discretion, may replace NCPA as the scheduling coordinator for the Facility. If NCPA ceases to be the scheduling coordinator for the Facility and the Buyer has not, upon fourteen (14) days’ prior written notice of inquiry from the Seller, appointed a replacement scheduling coordinator, then the Seller shall have the right to appoint a replacement scheduling coordinator on the Buyer’s behalf. Thereafter, the Buyer shall enter into all reasonable and appropriate agreements with such replacement scheduling coordinator at its own costs. 6.4 Scheduling Procedure. The Buyer may require the Seller to provide the Buyer with Energy forecasts on a periodic basis, as may be necessary for the Buyer to account for expected Facility generation in its daily power scheduling process. The requirements are set forth in Exhibit “PPA-C.” 6.5 Modification of Scheduling and Outage Notification Procedure. The Buyer may unilaterally modify Exhibit “PPA-C” to reflect changes necessary in the scheduling and Outage notification procedures. The Buyer shall give the Seller reasonable notice of any such changes. 6.6 Provision of Other Equipment. If the Seller is required to enter into a Participating Generator Agreement with the CAISO, then the Seller, at its own cost and expense, shall provide and maintain data transmission-grade phone line and telecommunications equipment at the meter location that complies with applicable requirements of the CAISO, the Buyer, and NCPA. Any meter installed by the Seller shall comply at all times with the CAISO’s metering requirements. If the Seller fails to provide or maintain any such required equipment or data connection, then the Buyer shall acquire, install and maintain the same at the Seller’s sole cost and expense. 6.7 Designation as Resource Adequacy Resource. The Buyer may submit a written request to the Seller to obtain the CAISO’s designation of the Facility as a Resource Adequacy Resource. Upon receipt of such request, the Seller shall provide such information and undertake such steps as may be required by the CAISO in order to complete such an assessment. If the Buyer makes such a request, then the Buyer shall be responsible for the following: (1) any costs charged to the Seller by the CAISO as a condition of applying for or receiving designation as a Resource Adequacy Resource, including any deposits required during the study process or the cost of any related studies or deliverability assessments performed by the CAISO; (2) the capital, installation, and maintenance costs of any additional equipment required by the CAISO as a condition of receiving designation as a Resource Adequacy Resource; (3) the costs of any Network Upgrades, as defined in the CAISO Tariff, as may be required by the CAISO, provided, the Buyer shall receive any subsequent repayments from the CAISO or the Participating Transmission Owner related to such upgrades; and (4) any charges or penalties assessed by the CAISO as a consequence of the Facility’s designation as a Resource Adequacy Resource. 6.8 CAISO Charges. The Buyer shall be solely responsible for paying all costs and charges associated with the receipt of Energy under this Agreement, at the Delivery Point, and for the transmission and delivery of Energy from the Delivery Point to any other point downstream of the Delivery Point, including transmission costs and charges, competition transition charges, applicable control area service charges, transmission congestion charges, inadvertent energy flows, any other CAISO charges related to the transmission of such Energy by the CAISO and any charge assessed or collected in the future pursuant to any utility tariff or rate schedule, however defined, for transmission or transmission-related service rendered by or for any transmission-owning or operating entity. The Seller will undertake any and all actions reasonably needed to allow the Buyer to comply with any obligations, and minimize any potential liability, under the CAISO tariff. If and to the extent that the Seller fails to comply with the notice provision in Exhibit “PPA-C,” concerning Outages, or with its obligations as outlined in the previous sentence, the Seller shall be wholly responsible for all imbalances, deviations, or any other CAISO charges or penalties associated with such Outage or other CAISO Tariff obligation. 6.9 Inclusion in Metered Subsystem. At the option of the Buyer, the Facility may be included within NCPA’s metered sub-system in connection with the scheduling of power over the CAISO grid and related functions; provided, however, that such inclusion shall have no adverse effect on the Facility’s operations or the Seller (or any such effect shall be fully mitigated by the Buyer). The Seller will undertake any and all actions reasonably needed to allow the Buyer to comply with any obligations, and Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 30  Packet Pg. 318 of 389  040914 jrm 0180042 10 minimize any potential liability, under the CAISO Tariff; provided, that if such actions require any actions beyond the giving of notice to be provided by the Buyer, then the Buyer shall reimburse the Seller for all out-of-pocket costs and charges of such actions. 7.0 COMMERCIAL OPERATION DATE; REFUND OF RESERVATION DEPOSIT 7.1 Commercial Operation Date. The Facility shall achieve Commercial Operation by the Commercial Operation Date deadline (the “Deadline”), which is one (1) year from the Effective Date, or, for Affordable Housing Developments, three (3) years from the Effective Date. 7.2 Reservation Deposit. The Buyer acknowledges that, as of the Effective Date or other date established by the Buyer, the Seller has provided the Reservation Deposit to the Buyer. 7.2.1 If the Commercial Operation Date occurs on or prior to the Deadline, the Buyer shall refund to the Seller the Reservation Deposit without interest. 7.2.2 If the Commercial Operation Date commences within seventy (70) days of the Deadline, the Seller, as liquidated damages and not as a penalty, shall relinquish its claim to a ten percent (10%) portion of the amount of the Reservation Deposit for every full week transpiring between the Deadline and the Commercial Operation Date, but the total amount to be relinquished to the Buyer shall not exceed 100% of the Reservation Deposit. 7.2.3 If the Facility has not achieved Commercial Operation within seventy (70) days of the Deadline, then the Buyer may terminate this Agreement without liability of either Party to the other (other than as set forth in Section 7.2.2) by giving written notice of termination to the Seller. 7.2.4 If the Seller gives notice of termination to terminate the Agreement before Commercial Operation occurs, then the Buyer shall refund a percentage of the Reservation Deposit equal to the following: the percentage to be refunded will equal A/B, where A equals the number of days between the date of the Seller’s notice of termination, received by the Buyer, and the Deadline, and B equals the number of days between the Effective Date and the Deadline. 7.3 Return of Reservation Deposit. The Buyer shall return to the Seller the Reservation Deposit, without interest, in the event that (a) the Buyer furnishes written notice of the costs of interconnection (defined in the Interconnection Agreement to include the costs related to the Interconnection Facilities and Distribution Upgrades) to the Seller and (b) within thirty (30) days of receipt of the notice regarding costs of interconnection, the Seller provides the Buyer with written notice that the Seller does not intend to sign the Interconnection Agreement and does intend to proceed with the project. 8.0 REPRESENTATION AND WARRANTIES; COVENANTS 8.1 Representations and Warranties. On the Effective Date, each Party represents and warrants to the other Party that: Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 31  Packet Pg. 319 of 389  040914 jrm 0180042 11 8.1.1 It is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation; 8.1.2 The execution, delivery and performance of this Agreement is within its powers, have been duly authorized by all necessary action and do not violate any of the terms and conditions in its governing documents, any contracts to which it is a party or any law, rule, regulation, order or the like applicable to it; 8.1.3 This Agreement and each other document executed and delivered in accordance with this Agreement constitutes its legally valid and binding obligation enforceable against it in accordance with its terms; 8.1.4 It is not bankrupt and there are no proceedings pending or being contemplated by it or, to its knowledge, threatened against it which would result in it being or becoming bankrupt; 8.1.5 There is not pending or, to its knowledge, threatened against it or any of its affiliates, if any, any legal proceedings that could materially adversely affect its ability to perform its obligations under this Agreement; and 8.1.6 It is acting for its own account, has made its own independent decision to enter into this Agreement and as to whether this Agreement is appropriate or proper for it based upon its own judgment, is not relying upon the advice or recommendations of the other Party in so doing, and is capable of assessing the merits of, and understands and accepts, the terms, conditions and risks of this Agreement. 8.2 General Covenants. Each Party covenants that, during the Term: 8.2.1 It shall continue to be duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation; 8.2.2. It shall maintain (or obtain from time to time as required, including through renewal, as applicable) all regulatory authorizations necessary for it to legally perform its obligations under this Agreement; and 8.2.3 It shall perform its obligations under this Agreement in a manner that does not violate any of the terms and conditions in its governing documents, any contracts to which it is a party or any law, rule, regulation, order or the like applicable to it. 8.3 Covenant by Seller. The Seller covenants that, during the Term: 8.3.1 If the Eligible Renewal Energy Resource or the Facility is considered an ‘eligible qualifying facility’ under applicable law and has a net power production capacity of greater than one (1) megawatt, then the Seller covenants and agrees that, within thirty (30) days of the Effective Date or longer period allowed by law, it will complete and file Form No. 556 or other similar form with FERC as the same may be required by law.” 9.0 GENERAL CONDITIONS 9.1 Facility Care and Interconnection. During the Delivery Term, the Seller shall execute and maintain an “Interconnection Agreement” with the Buyer, whereby the Seller shall pay and be responsible for designing, installing, operating, and maintaining the Facility in accordance with all applicable laws and regulations and shall comply with all applicable Buyer, WECC, FERC, and NERC requirements, including applicable interconnection and metering requirements. The Seller shall also comply with any modifications, amendments or additions to the applicable tariff and protocols. The Seller also shall arrange and pay independently for any and all necessary costs under the Interconnection Agreement with the Buyer. Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 32  Packet Pg. 320 of 389  040914 jrm 0180042 12 9.2 Standard of Care. The Seller shall: (a) operate and maintain the Facility in a safe manner in accordance with its existing applicable interconnection agreements, manufacturer’s guidelines, warranty requirements, Good Utility Practice, industry norms (including standards of the National Electrical Code, Institute of Electrical and Electronic Engineers, American National Standards Institute, and the Underwriters Laboratories, and in accordance with the requirements of all applicable federal, state and local laws and the National Electric Safety Code, as such laws and code norms may be amended from time to time; (b) obtain any governmental authorizations and permits required for the construction and operation thereof. The Seller shall make any necessary and commercially reasonable repairs with the intent of optimizing the availability of electricity to the Buyer. The Seller shall reimburse the Buyer for any and all losses, damages, claims, penalties, or liability that the Buyer incurs as a result of the Seller’s failure to obtain or maintain any governmental authorizations and permits required for the construction and operation of the Facility throughout the Term. 9.3 Access Rights. The Buyer, its authorized agents, employees and inspectors shall have the right to inspect the Facility on reasonable advance notice during normal business hours and for any purposes reasonably connected with this Agreement or the exercise of any and all rights secured to the Buyer by law, including, without limitation, its ordinances, resolutions, tariffs, utility rate schedules or utilities rules and regulations. The Buyer shall make reasonable efforts to coordinate its emergency activities with the safety and security departments, if any, of the Facility’s operator. The Seller shall keep the Buyer advised of current procedures for communicating with the Facility operator’s safety and security departments. 9.4 Protection of Property. Each Party shall be responsible for protecting its own facilities from possible damage resulting from electrical disturbances or faults caused by the operation, faulty operation, or non-operation of the other Party’s facilities and such other Party shall not be liable for any such damages so caused. 9.5 Insurance. During the Term, the Seller shall obtain and maintain and otherwise comply with the insurance requirements, as set forth in Exhibit “PPA-E.” 9.6 Buyer’s Performance Excuse; Seller Curtailment. 9.6.1 Buyer Performance Excuse. The Buyer shall not be obligated to accept or pay for the Output during Force Majeure that affects the Buyer’s ability to accept Energy. 9.6.2 Seller Curtailment. The Buyer may require the Seller to interrupt or reduce deliveries of Energy: (a) whenever necessary to construct, install, maintain, repair, replace, remove, or investigate any of its equipment or part of the Buyer’s Distribution System or facilities; or (b) if the Buyer determines that curtailment, interruption, or reduction is necessary due to a System Emergency, as defined in the CAISO Tariff, an unplanned outage on Buyer’s Distribution System, Force Majeure, or compliance with Good Utility Practice. 9.7 Notices of Outages. Whenever possible, the Buyer shall give the Seller reasonable notice of the possibility that interruption or reduction of deliveries may be required. 9.8 No Additional Loads. The Seller shall not connect any loads not associated with Station Service Loads at the location of the Facility in a manner that would reduce Energy provided from the Facility to the Buyer hereunder. The Seller shall obtain separate retail electric service under the Buyer’s rate schedules for the service of such additional loads. 10.0 FORCE MAJEURE 10.1 Effect of Force Majeure. A Party shall be excused from its performance under this Agreement to the extent, but only to the extent, that its performance hereunder is prevented by Force Majeure. A Party claiming Force Majeure shall exercise due diligence to overcome or mitigate the effects of Force Majeure; provided, that nothing in this Agreement shall be deemed to obligate the Party affected by Force Majeure (a) to forestall or settle any strike, lock-out or other labor dispute against its will; or (b) for Force Majeure affecting the Seller only, to purchase electric power to cure Force Majeure. Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 33  Packet Pg. 321 of 389  040914 jrm 0180042 13 10.2 Remedial Action. A Party shall not be liable to the other Party if the Party is prevented from performing its obligations hereunder due to Force Majeure. The Party rendered unable to fulfill an obligation by reason of Force Majeure shall take all action necessary to remove such inability with all due speed and diligence. The nonperforming Party shall be prompt and diligent in attempting to remove the cause of its failure to perform, and nothing herein shall be construed as permitting that Party to continue to fail to perform after that cause has been removed. Notwithstanding the foregoing, the existence of Force Majeure shall not excuse any Party from its obligations to make payment of amounts due hereunder. 10.3 Notice of Force Majeure. In the event of any delay or nonperformance resulting from Force Majeure, the Party directly impacted by Force Majeure shall, as soon as practicable under the circumstances, notify the other Party, in writing, of the nature, cause, date of commencement thereof and the anticipated extent of any delay or interruption in performance. 10.4 Termination Due to Force Majeure. If a Party will be prevented from performing its material obligations under this Agreement for an estimated period of twelve (12) consecutive months or longer due to Force Majeure, then the unaffected Party may terminate this Agreement, without liability of either Party to the other (other than any liability set forth in Section 7.2.2 arising prior to such extended Force Majeure), upon thirty (30) Days’ prior written notice at any time during Force Majeure. 11.0 INDEMNITY 11.1 Indemnity by the Seller. The Seller shall indemnify, defend, and hold harmless the Buyer, its elected and appointed officials, directors, officers, employees, agents, and representatives against and from any and all losses, claims, demands, liabilities and expenses, actions or suits, including reasonable costs and attorney’s fees, resulting from, or arising out of or in any way connected with claims by third parties associated with (A) (i) Energy delivered at the Delivery Point; (ii) the Seller’s operation and/or maintenance of the Facility; or (iii) the Seller’s actions or inactions with respect to this Agreement, and (B) any loss, claim, action or suit, for or on account of injury, bodily or otherwise, to, or death of, persons, or for damage to or destruction of property belonging to the Buyer or other third party, excepting only such loss, claim, action or suit as may be caused solely by the willful misconduct or gross negligence of the Buyer, its agents, employees, directors or officers. 11.2 Indemnity by the Buyer. The Buyer shall indemnify, defend, and hold harmless the Seller, its directors, officers, employees, agents, and representatives against and from any and all losses, claims, demands, liabilities and expenses, actions or suits, including reasonable costs and attorney’s fees resulting from, or arising out of or in any way connected with claims by third parties associated with acts of the Buyer, its officers, employees, agents, and representatives, relating to: (A) Energy delivered by the Seller under this Agreement after the Delivery Point, and (B) any loss, claim, action or suit, for or on account of injury, bodily or otherwise, to, or death of, persons, or for damage to or destruction of property belonging to the Seller or other third party, excepting only such loss, claim, action or suit as may be caused solely by the willful misconduct or gross negligence of the Seller, its agents, employees, directors or officers. 12.0 LIMITATION OF DAMAGES EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT THERE IS NO WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND ANY AND ALL IMPLIED WARRANTIES ARE DISCLAIMED. LIABILITY SHALL BE LIMITED TO DIRECT ACTUAL DAMAGES ONLY, SUCH DIRECT ACTUAL DAMAGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY AND ALL OTHER REMEDIES OR DAMAGES AT LAW OR IN EQUITY ARE WAIVED UNLESS EXPRESSLY HEREIN PROVIDED. NEITHER PARTY SHALL BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES, LOST PROFITS OR OTHER BUSINESS INTERRUPTION DAMAGES, BY STATUTE, IN TORT OR Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 34  Packet Pg. 322 of 389  040914 jrm 0180042 14 CONTRACT, UNDER ANY INDEMNITY PROVISION OR OTHERWISE. UNLESS EXPRESSLY HEREIN PROVIDED, AND SUBJECT TO THE PROVISIONS OF SECTION 11 (INDEMNITY), IT IS THE INTENT OF THE PARTIES THAT THE LIMITATIONS HEREIN IMPOSED ON REMEDIES AND THE MEASURE OF DAMAGES BE WITHOUT REGARD TO THE CAUSE OR CAUSES RELATED THERETO, INCLUDING THE NEGLIGENCE OF ANY PARTY, WHETHER SUCH NEGLIGENCE BE SOLE, JOINT OR CONCURRENT, OR ACTIVE OR PASSIVE. 13.0 NOTICES Notices shall, unless otherwise specified herein, be given, in writing, and may be delivered by hand delivery, United States mail, overnight courier service, facsimile or electronic messaging (e-mail) to the addresses set forth in Exhibit “PPA-F.”. Whenever this Agreement requires or permits delivery of a “notice” (or requires a Party to “notify”), the Party with such right or obligation shall provide a written communication in the manner specified below. A notice sent by facsimile transmission or electronic mail will be recognized and shall be deemed received on the Business Day on which such notice was transmitted if received before 5 p.m. Pacific Time (and if received after 5 p.m., on the next Business Day) and a notice by overnight mail or courier shall be deemed to have been received two (2) Business Days after it was sent or such earlier time as is confirmed by the receiving Party unless it confirms a prior oral communication, in which case any such notice shall be deemed received on the day sent. A Party may change its addresses by providing notice of same in accordance with this provision. A Party may request a change to Exhibit “PPA- F” as necessary to keep the information current. 14.0 TERM, TERMINATION EVENT AND TERMINATION 14.1 Term. The Term shall commence upon the execution by the duly authorized representatives of each of the Parties, and shall remain in effect until the conclusion of the Delivery Term, unless terminated sooner pursuant to the terms and conditions of this Agreement. All indemnity rights shall survive the termination of this Agreement for twelve (12) months. 14.2 Delivery Term. The Delivery Term of the Agreement is _______ years and is defined as the period of time from the Commercial Operation Date through the expiration or early termination of this Agreement. 14.3 Termination Event. 14.3.1 The Buyer shall have the right, but not the obligation, to terminate this Agreement upon the occurrence of any of the following, each of which is a “Termination Event”: (a) The Facility has not achieved Commercial Operation within seventy (70) days following the Deadline; (b) After the Commercial Operation Date, the Seller has not sold or delivered Energy from the Facility to the Buyer for a period of twelve (12) consecutive months; (c) If the Facility does not obtain RPS Certification within six (6) months of the Commercial Operation Date and maintain RPS Certification as required by Section 3.2; or (d) The Seller breaches any other material obligation of this Agreement. 14.3.2 The Seller shall have the right, but not the obligation, to terminate this Agreement upon the occurrence of any of the following, each of which is a “Termination Event”: (a) The Buyer fails to make a payment due and payable under this Agreement within thirty (30) days after written notice that such payment is due; or (b) The Buyer breaches any other material obligation of this Agreement. The preceding sentence notwithstanding, the Seller may terminate this Agreement without cause at any time prior to the Commercial Operation Date, subject to the provisions of Section 7 of this Agreement. 14.4 Time to Cure. None of the events described in Section 14.3.1 and 14.3.2 shall constitute a Termination Event if the Buyer or the Seller cures the event, failure, or circumstance within thirty (30) days after receipt of written notification sent by the other Party, seeking termination, or such longer period as may be necessary to cure so long as the Party subject to the Terminating Event is exercising diligent efforts to cure. Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 35  Packet Pg. 323 of 389  040914 jrm 0180042 15 14.5 Termination. 14.5.1 Declaration of a Termination Event. If a Termination Event has occurred and is continuing, the Party with the right to terminate shall have the right to: (a) send notice, designating a day, no earlier than thirty (30) days after such notice is deemed to be received (as provided in Section 13), as an early termination date of this Agreement (the “Early Termination Date”), unless the Seller has timely communicated with the Buyer and the Parties have agreed to resolve the circumstances giving rise to the Termination Event; (b) accelerate all amounts owing between the Parties; and (c) terminate this Agreement and end the Delivery Term effective as of the Early Termination Date. 14.5.2 Release of Liability for Termination Event. Upon termination of this Agreement pursuant to this section neither Party shall be under any further obligation or subject to liability hereunder, except with respect to the indemnity provision in Section 11 hereof, which shall remain in effect for a period of 12 months following the Early Termination Date. 14.6 No Limitation on Damages. Nothing in this Agreement shall be deemed or construed to limit a Party’s right to recover damages from the other Party, except as otherwise provided in this Agreement. 15.0 RELEASE OF DATA Except as may be exempt from disclosure under applicable law, the Seller authorizes the Buyer to release to any regulatory authority having jurisdiction over the Facility or a Party, or to any request made pursuant to the California Constitution or the California Public Records Act, information regarding the Facility, including the Seller’s name and location, operational characteristics, the Term of this Agreement, the Facility resource type, the scheduled Commercial Operation Date, the actual Commercial Operation Date, the Contract Capacity, payments made to the Seller and Energy production information. The Seller acknowledges that this information may be made publicly available. 16.0 ASSIGNMENT Neither Party shall assign this Agreement or its rights hereunder without the prior written consent of the other Party, which consent shall not be unreasonably withheld. 16.1 Upon the written request of the Seller, the Buyer will execute a “Lender Consent and Agreement” between the Seller and the Seller’s lender(s), if any, in the form acceptable to the Parties; provided, for illustration purposes only, an exemplar is attached hereto as Exhibit “PPA-G.” 16.2 Notwithstanding the foregoing, no Consent and Agreement shall be required for: 16.2.1 Any assignment or transfer of this Agreement by the Seller to an affiliate of the Seller, provided that such affiliate’s creditworthiness is equal to or better than that of Seller, as reasonably determined by the non-assigning or non-transferring Party; or 16.2.2 Any assignment or transfer of this Agreement by the Seller or the Buyer to a person succeeding to all or substantially all of the assets of such Party, provided that such person’s creditworthiness is equal to or greater than that of such Party, as reasonably determined by the non-assigning or non-transferring Party. 16.2.3 Notification of any assignment or transfer of this Agreement under Section 16.2.1 or 16.2.2 shall be given to the non-assigning or non-transferring Party in accordance with Exhibit “PPA-F.” 17.0 APPLICABLE LAW, VENUE, ATTORNEYS’ FEES, AND INTERPRETATION This Agreement will be governed by and construed in accordance with the laws of the State of California. The Parties will comply with applicable laws pertaining to their obligations arising under this Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 36  Packet Pg. 324 of 389  040914 jrm 0180042 16 Agreement. 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 or in the United States District Court for the Northern District of California in the County of Santa Clara, State of California. 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. If a court of competent jurisdiction finds or rules that any provision of this Agreement, the Exhibits, or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement, the Exhibits, or any amendment thereto will remain in full force and effect. The Parties agree that the normal rule of construction to the effect that any ambiguity is to be resolved against the drafting party will not be employed in the interpretation of this Agreement or any Exhibit or any amendment thereof. 18.0 SEVERABILITY If any provision in this Agreement is determined to be invalid, void or unenforceable by any court having jurisdiction, such determination shall not invalidate, void, or make unenforceable any other provision, agreement or covenant of this Agreement and the Parties shall use their best efforts to modify this Agreement to give effect to the original intention of the Parties. 19.0 COUNTERPARTS; INTERPRETATION OF CONFLICTING PROVISIONS This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall be deemed one and the same Agreement. Delivery of an executed counterpart of this Agreement by facsimile or portable document format (“PDF”) transmission will be deemed as effective as delivery of an originally executed counterpart. Each Party delivering an executed counterpart of this Agreement by facsimile or PDF transmission will also deliver an originally executed counterpart, but the failure of any Party to deliver an originally executed counterpart of this Agreement will not affect the validity or effectiveness of this Agreement. In the event of a conflict between the Agreement and any, some or all of the Exhibits, the document imposing the more specific duty or obligation will prevail. 20.0 GENERAL No amendment to or modification of this Agreement shall be enforceable unless reduced to writing and executed by both Parties. This Agreement shall not impart any rights enforceable by any third party other than a permitted successor or assignee bound to this Agreement. Waiver by a Party of any default by the other Party shall not be construed as a waiver of any other default. The headings used herein are for convenience and reference purposes only. // // // // // // Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 37  Packet Pg. 325 of 389  040914 jrm 0180042 17 21. EXHIBITS The following exhibits shall be deemed incorporated in and made a part of this Agreement. Exhibit “PPA-A” - Facility Description, Prices, and Reservation Deposit Exhibit “PPA-B” - Commercial Operation Date Confirmation Letter Exhibit “PPA-C” - Scheduling and Outage Notification Procedure Exhibit “PPA-D” - Green Attributes Reporting and Conveyance Procedures Exhibit “PPA-E” - Insurance Requirements Exhibit “PPA-F” - Notices Exhibit “PPA-G” - Form of Lender Consent and Agreement IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their authorized representatives as of the Effective Date. CITY OF PALO ALTO SELLER APPROVED AS TO FORM Senior Deputy City Attorney APPROVED City Manager Director of Utilities Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 38  Packet Pg. 326 of 389  040914 jrm 0180042 18 EXHIBIT “PPA-A” Facility Description, Rates, and Reservation Deposit Program Rates Contract Term: [Fifteen (15), twenty (20), or twenty-five (25) years] Contract rate: $0.165 per kWh for solar resources, 15- or 20- or 25-year contract term (up to 3 MW solar energy resources program capacity) $0.095 per kWh for solar resources, 15-year contract term (beyond 3 MW) $0.098 per kWh for solar resources, 20-year contract term (beyond 3 MW) $0.102 per kWh for solar resources, 25-year contract term (beyond 3 MW) $0.094 per kWh for non-solar resources, 15-year contract term $0.098 per kWh for non-solar resources, 20-year contract term $0.101 per kWh for non-solar resources, 25-year contract term Pre-certification rate: $0.08 per kWh Reservation Deposit Reservation Deposit ($20/kW of Contract Capacity): $ Service address: Facility Description: Contract Capacity: kW (CEC-AC), based on solar array rating (Panel rated output at PV USA test conditions x inverter efficiency) or inverter rating Facility primary fuel/technology: Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 39  Packet Pg. 327 of 389  040914 jrm 0180042 19 EXHIBIT “PPA-B” Commercial Operation Date Confirmation Letter In accordance with the terms of the Power Purchase Agreement (Palo Alto CLEAN), dated (the “Agreement”) by and between the City of Palo Alto, as the Buyer, and , as the Seller, this Confirmation Letter serves to document the Parties’ agreement that (i) the conditions precedent to the occurrence of the Commercial Operation Date have been satisfied, and (ii) the Buyer has received Energy, as specified in the Agreement, as of , . The actual installed Contract Capacity is kW. This Confirmation Letter shall confirm the Commercial Operation Date, as defined in the Agreement, as of the date referenced in the preceding sentence. IN WITNESS WHEREOF, each Party has caused this letter to be duly executed by its authorized representative as of the date of last signature provided below: Buyer Seller By: By: Name: Name: Title: Director of Utilities Title: Date: Date: In recognition of the Commercial Operation Date relative to the Effective Date of the Agreement by and between the Buyer and the Seller, the Seller hereby calculates the amount to return, if any, of the Seller’s deposit, as follows: Original Reservation Deposit Amount: $ Commercial Operation Date Deadline: □ Commercial Operation Date is prior to Deadline □ Commercial Operation Date occurred weeks following the Deadline, meaning that % of the Reservation Deposit is relinquished by Seller per Section 7.2.2 of the Power Purchase Agreement. Amount (if any) of Reservation Deposit to return to the Seller is: $ Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 40  Packet Pg. 328 of 389  040914 jrm 0180042 20 EXHIBIT “PPA-C” Scheduling and Outage Notification Procedure C.1 Applicability. This Exhibit” PPA-C” shall apply if the Facility is subject to Section 6.0 of this Agreement. C.2 Annual Operations Forecast C.2.1 By the tenth (10th) day September of each calendar year, the Seller will provide NCPA with an annual operations forecast detailing hourly expected generation and all proposed planned Outages for the next calendar year. The annual operations forecast for the calendar year shall be provided by not later than ninety (90) days prior to the scheduled Commercial Operation Date of the Generating Facility. C.2.2 NCPA may request modifications to the annual operations forecast at any time, and the Seller shall use good faith efforts to accommodate the requested modifications. C.2.3 The Seller shall not conduct Planned Outages at times other than as set forth in its annual operations forecast, unless approved in advance by NCPA, which approval shall not be withheld or delayed unreasonably. C.2.4 The Seller shall not schedule or conduct Planned Outages from 12:00 p.m. through 7:00 p.m. Pacific Time during the months of June through October. C.3. Short Term Operations Forecasts C.3.1. Quarterly Operations Forecast C.3.1.1 By the fifth (5th) day of January, April and July of each Contract Year, the Seller shall provide a calendar quarter-operations forecast by hour of expected generation and all proposed Planned Outages for the next full calendar quarter and the twelve (12) months following that calendar quarter. As an example, by January 5, 2014, the Seller would provide a calendar quarter-operations forecast by hour of expected generation for the period, April 1, 2014 through June 30, 2014, and identify all proposed Planned Outages for the period, April 1, 2014 through June 30, 2015. C.3.1.2 NCPA will approve or require modifications to the proposed calendar quarter-operations forecast within ten (10) days of receipt of the forecast. C.3.1.3 If required by NCPA, the Seller will provide a modified calendar quarter-operations forecast within seven (7) days after receipt of required modifications from NCPA. C.3.2 Weekly Update C.3.2.1 By 14:00 of each Wednesday, the Seller shall provide an electronic update, in a format specified by NCPA, to the calendar quarter-operations forecast for the following seven (7) days (Thursday through the next Wednesday). C.3.2.2 The weekly update shall include hourly expected generation and all proposed planned Outages for the relevant seven (7) day period. C.4 Outage Detail for Annual and Short Term Operations Forecasts. Outage information provided by the Seller shall include, at a minimum, the start time and stop time of the Outage, capacity out of service (kW), the equipment that is or will be out of service, and the reason for the Outage. Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 41  Packet Pg. 329 of 389  040914 jrm 0180042 21 C.5 General Scheduling Protocols C.5.1 Daily Modifications to Forecasts. Unless otherwise mutually agreed, the Seller may make changes to the weekly update to the calendar quarter-operations forecast by providing such changes to NCPA prior to 08:00 of the day that is two (2) Business Days before the active scheduling day as determined by the WECC prescheduling calendar. Example: For power that is scheduled for generation or delivery on Friday, March 29, 2014, changes must be submitted to NCPA by 08:00 on Wednesday, March 27, 2014. C.5.2 Hourly Modifications to Active Schedules. Unless otherwise mutually agreed, the Seller may request changes to active schedules by providing such changes to NCPA with a minimum of four (4) hours’ notice prior to the applicable CAISO market deadline (e.g. Hour Ahead Scheduling Process (“HASP”) Scheduling deadline, as defined in the CAISO Tariff). Active day Schedule changes are not binding. Changes to active Schedules are limited to two (2) changes per day, excluding forced Outages, unless otherwise agreed to between the Parties. One request for a Schedule change, of one-hour or multiple-hours duration, constitutes one Schedule change. Example: For power that is scheduled for generation or delivery in hour ending 15:00 (for the period from 14:01 to 15:00), changes must be submitted to NCPA by 10:00. C.5.3. Unforeseen Circumstances. At the Seller’s request, NCPA may, but is not required to, modify the Schedules for the Generation Facility Output due to unforeseen circumstances in accordance with the above scheduling timeline constraints described in this Exhibit PPA-C. C.5.4. Absence of Forecasts. In the absence of forecasts and schedules as required by this Agreement or this Exhibit, NCPA shall utilize the most current information the Seller provides in the development and submission of Schedules. C.6 Outage Reporting Protocols C.6.1. Notification. The Seller shall notify NCPA of all planned or forced Outages of the Generating Facility to ensure compliance with the CAISO Outage Coordination and Enforcement Protocols. C.6.1.1 Outage information provided by the Seller shall include, at a minimum, the start time and stop time of the Outage, Capacity out of service (kW), equipment out of service, and the reason for the Outage. C. 6.1.2 Seller shall provide the Planned Outages not included in the annual operations forecast, the calendar quarter-operations forecast, or the weekly update, to NCPA at least four (4) Business Days prior to the start of the requested outage. C. 6.1.3 At any time prior to the start of a Planned Outage, the CAISO may deny the Outage due to a System Emergency (as defined in the CAISO Tariff) or as otherwise permitted under the CAISO Tariff. If NCPA receives notice that the CAISO has denied an Outage in accordance with the CAISO Tariff, NCPA will notify the Seller as soon as possible and the Seller shall modify the planned Outage as required by the CAISO. C.6.2 Commencement of an Outage. The Seller shall not begin any Planned Outage without the prior approval of NCPA and the CAISO. C.6.3 Forced Outages C.6.3.1 The Seller shall report the Forced Outages to NCPA within twenty (20) Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 42  Packet Pg. 330 of 389  040914 jrm 0180042 22 minutes of such Outages. C.6.3.2 The Seller’s notice of a Forced Outage sent to NCPA shall include the reason for the Outage (if known), expected duration of the Outage, and the Capacity reduction. C.6.3.3 By the end of the next Business Day following the day on which a Forced Outage has occurred, the Seller shall provide to NCPA a detailed written report, specifying the reason for the Outage, expected duration of such Outage, capacity reduction, and actions taken to mitigate such Outage. C.6.4 Return to Service. The Seller shall notify NCPA as soon as possible, but in any case before the Generating Facility is returned to service. C.7 Notices. All Scheduling notices and Schedules shall be submitted to NCPA by phone, fax or email, or other means as may be mutually agreed by the Parties, to the persons designated in Exhibit “PPA-F.” C.8 Changes in Scheduling and Outage Procedure. The Buyer shall revise Exhibit “PPA-C,” or, as appropriate, give written notice to the Seller regarding the revision, and issue a new Exhibit “PPA-C,” which shall then become part of the Agreement to reflect changes in the scheduling and outage notification procedure. Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 43  Packet Pg. 331 of 389  040914 jrm 0180042 23 EXHIBIT “PPA-D” Green Attributes Reporting and Conveyance Procedures D.1 Additional Definitions for the Conveyance of Green Attributes D.1.1 “Certificate Transfers” means the process, as described in the WREGIS Operating Rules, whereby a WREGIS account holder may request that WREGIS Certificates from a specific generating unit shall be directly deposited to another WREGIS account. D.1.2 “WREGIS Certificates” means a certificate created within the WREGIS system that represents all Renewable and Green Attributes from one MWh of electricity generation from an Eligible Renewable Energy Resource that is registered with WREGIS. D.1.3 “WREGIS Operating Rules” means the document published by WREGIS that governs the operation of the WREGIS system for registering, tracking, and conveying, among others, RECs produced from Eligible Renewable Energy Resources that shall be registered with WREGIS. D.1.4 “WREGIS” means Western Renewable Energy Generation Information System. D.2 RECs. Green Attributes shall be conveyed by the Seller to the Buyer through RECs, which shall be registered tracked and conveyed to the Buyer, using WREGIS. D.3 WREGIS Registration. Prior to the Commercial Operation Date, the Buyer will register the Facility in the Buyer’s WREGIS account on behalf of the Seller. The Buyer shall charge back to the Seller any costs of registering and maintaining the registration of the Facility with WREGIS. The Seller shall provide to the Buyer any documents required by WREGIS and assign the Seller’s rights to register the Facility in WREGIS, using agreements provided by WREGIS. D.4 B u yer ’s W REGI S Acco unt . The Buyer shall, at its sole expense, establish and maintain the Buyer’s WREGIS account sufficient to accommodate the WREGIS Certificates produced by the output of the Facility. The Buyer shall be responsible for all expenses associated with (A) establishing and maintaining the Buyer’s WREGIS Account, and (B) subsequently transferring or retiring WREGIS Certificates. D.5 Qualified Reporting Entity. The Buyer shall be the Qualified Reporting Entity (as such term is defined by WREGIS) for the Facility, and shall be responsible for providing the metered Output data to WREGIS. D.6 Reporting of Environmental Attributes. In lieu of the Seller’s transfer of the WREGIS Certificates using Certificate Transfers from the Seller’s WREGIS account to the Buyer’s WREGIS account, the Buyer shall report the Facility as being held directly in its WREGIS account, which will preclude the Seller from reporting the Facility in its own WREGIS account. D.6.1 By avoiding the use of Certificate Transfers, there will be no transaction costs to the Seller or the Buyer for the Certificate Transfers that would otherwise be used. D.6.2 WREGIS Certificates for the Facility will be created on a calendar month basis in accordance with the certification procedure established by the WREGIS Operating Rules in an amount equal to the Energy generated by the Project and delivered to the Buyer in the same calendar month. D.6.3 WREGIS Certificates will only be created for whole MWh amounts of energy generated. Any fractional MWh amounts (i.e., kWh) will be carried forward until sufficient generation is accumulated for the creation of a WREGIS Certificate and all such accumulated Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 44  Packet Pg. 332 of 389  040914 jrm 0180042 24 MWh of Environmental Attributes will then be available to Buyer. D.6.4 If a WREGIS Certificate Modification (as such term is defined by WREGIS) will be required to reflect any errors or omissions regarding the Green Attributes from the Facility, then the Buyer will manage the submission of the WREGIS Certificate Modification. D.6.5 Due to the expected delay in the creation of WREGIS Certificates relative to the timing of invoice payments under Section 2, the Buyer will normally be making an invoice payment for the Output for a given month in accordance with Section 2 before the WREGIS Certificates for such month may be created in the Buyer’s WREGIS account. Notwithstanding this delay, the Buyer shall have all right and title to all such WREGIS Certificates upon payment to the Seller in accordance with Section 2. D.7 Changes in Green Attributes Reporting and Conveyance Procedures. The Buyer shall revise this Exhibit “PPA-D,” as appropriate, give written notice to the Seller regarding the revision, and issue a new Exhibit “PPA-D,” which shall then become part of this Agreement in the event that: D.7.1 WREGIS changes the WREGIS Operating Rules (as defined by WREGIS) after the Effective Date or applies the WREGIS Operating Rules in a manner inconsistent with this Exhibit “PPA-D” after the Effective Date; or, D.7.2 WREGIS is replaced as the primary method that the Buyer uses for conveyance of Green Attributes, or additional methods to convey all Green Attributes, are required. Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 45  Packet Pg. 333 of 389  040914 jrm 0180042 25 EXHIBIT “PPA-E” Insurance Requirements CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, WILL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH A 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 AUTOMOBILE LIABILITY STATUTORY YES COMMERCIAL GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $2,000,000 $2,000,000 YES COMPREHENSIVE AUTOMOBILE LIABILITY, INCLUDING, 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 NO INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: PROPOSER, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY PROPOSER AND ITS SUBCONSULTANS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSURES CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY – SEE, SAMPLE AGREEMENT FOR SERVICES. II. SUBMIT CERTIFICATE(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE, OR COMPLETE THIS SECTION AND IV THROUGH V, BELOW. A. NAME AND ADDRESS OF COMPANY AFFORDING COVERAGE (NOT AGENT OR BROKER): B. NAME, ADDRESS, AND PHONE NUMBER OF YOUR INSURANCE AGENT/BROKER: Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 46  Packet Pg. 334 of 389  040914 jrm 0180042 26 C. POLICY NUMBER(S): D. DEDUCTIBLE AMOUNT(S) (DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY’S PRIOR APPROVAL): III. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AND PROPOSER’S SUBMITTAL OF CERTIFICATES OF INSURANCE EVIDENCING COMPLIANCE WITH THE REQUIREMENTS SPECIFIED HEREIN. IV. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSURES” 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 INSURES. B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSURES 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 ISSUING COMPANY 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 ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. V. PROPOSER CERTIFIES THAT PROPOSER’S INSURANCE COVERAGE MEETS THE ABOVE REQUIREMENTS: THE INFORMATION HEREIN IS CERTIFIED CORRECT BY SIGNATURE(S) BELOW. SIGNATURE(S) MUST BE SAME SIGNATURE(S) AS APPEAR(S) ON SECTION II, ATTACHMENT A, PROPOSER’S INFORMATION FORM. Firm: Signature: Name: (Print or type name) Signature: Name: (Print or type name) Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 47  Packet Pg. 335 of 389  040914 jrm 0180042 27 NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303. Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 48  Packet Pg. 336 of 389  040914 jrm 0180042 28 EXHIBIT “PPA-F” Notices Contract Administration BUYER: SELLER: City of Palo Alto Utilities Resource Management 250 Hamilton Avenue Palo Alto, CA 94301 Ph: 650-329-2689 Email: UtilityCommoditySettlements@CityofPaloAlto.Org Billing and Settlements BUYER: SELLER: City of Palo Alto Utilities Resource Management 250 Hamilton Avenue Palo Alto, CA 94301 Ph: 650-329-2689 Email: UtilityCommoditySettlements@CityofPaloAlto.Org Forecasting and Outage Reporting under Section 6 of this Agreement Planned Outages: BUYER: SELLER: Northern California Power Agency Real- Time Dispatch 651 Commerce Drive Roseville, CA 95678 Ph: 916-786-3518 Forced Outages BUYER: SELLER: Northern California Power Agency Real- Time Dispatch 651 Commerce Drive Roseville, CA 95678 Ph: 916-786-3518 Forecasting and Scheduling BUYER: SELLER: Northern California Power Agency Operations and Pre-Scheduling 651 Commerce Drive Roseville, CA 95678 Ph: 916-786-0123 Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 49  Packet Pg. 337 of 389  040914 jrm 0180042 29 EXHIBIT “PPA-G” Form of Lender Consent and Agreement This CONSENT AND AGREEMENT (this “Consent”), dated as of , 20 , is entered into by and among the CITY OF PALO ALTO, a California chartered municipal corporation (the “City”), , a corporation (the “Lender),” by its agent, (the “Administrative Agent”), and , a corporation (the “Borrower”) (collectively, the “Parties”). Unless otherwise defined, all capitalized terms have the meaning given in the Contract (as hereinafter defined). RECITALS A. Borrower intends to develop, construct, install, test, own, operate and use an approximately MW electric generating facility located in the city of Palo Alto in the State of California, known as the Project (the “Project”). B. In order to partially finance the development, construction, installation, testing, operation and use of the Project, Borrower has entered into that certain financing agreement dated as of (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Financing Agreement”), among Borrower, the financial institutions from time to time parties thereto (collectively, the “Lenders”) , and Administrative Agent for the Lenders, pursuant to which, among other things, Lenders have extended commitments to make loans and other financial accommodations to, and for the benefit of, Borrower. C. The City and Borrower have entered into that certain Power Purchase Agreement, dated as of (attached hereto and incorporated herein by reference, as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with the terms thereof and hereof, the “Power Purchase Agreement”). D. The City and Borrower have entered into that certain Interconnection Agreement, dated as of _ (attached hereto and incorporated herein by reference, as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with the terms thereof and hereof, the “Interconnection Agreement”). E. Pursuant to a security agreement executed by Borrower and Administrative Agent for the Lenders (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Security Agreement”), Borrower has agreed, among other things, to assign, as collateral security for its obligations under the Financing Agreement and related documents (collectively, the “Financing Documents”), all of its right, title and interest in, to and under the Power Purchase Agreement and Interconnection Agreement to Administrative Agent for the benefit of itself, the Lenders and each other entity or person providing collateral security under the Financing Documents. F. It is a requirement under the Financing Agreement that the Parties hereto execute this Consent. AGREEMENT NOW THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be legally bound, the Parties agree, as follows: 1. CONSENT TO ASSIGNMENT. The City acknowledges the assignment referred to in Recital E above, consents to an assignment of the Power Purchase Agreement and Interconnection Agreement pursuant thereto, and agrees with Administrative Agent, as follows: (a) Administrative Agent shall be entitled (but not obligated) to exercise all rights and to cure any Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 50  Packet Pg. 338 of 389  040914 jrm 0180042 30 defaults of Borrower under the Power Purchase Agreement or Interconnection Agreement, as the case may be, subject to applicable notice and cure periods provided in the Power Purchase Agreement and Interconnection Agreement. Upon receipt of notice from Administrative Agent, the City agrees to accept such exercise and cure by Administrative Agent if timely made by Administrative Agent under the Power Purchase Agreement or Interconnection Agreement, as the case may be, and this Consent. Upon receipt of Administrative Agent's written instructions and to the extent allowed by law, the City agrees to make directly to such account as Administrative Agent may direct the City, in writing, from time to time, all payments to be made by the City to Borrower under the Power Purchase Agreement or Interconnection Agreement, as the case may be, from and after the City’s receipt of such instructions, and Borrower consents to any such action. The City shall not incur any liability to Borrower under the Power Purchase Agreement, Interconnection Agreement, or this Consent for directing such payments to Administrative Agent in accordance with this subsection (a). (b) The City will not, without the prior written consent of Administrative Agent (such consent not to be unreasonably withheld), (i) cancel or terminate the Power Purchase Agreement or Interconnection Agreement, or consent to or accept any cancellation, termination or suspension thereof by Borrower, except as provided in the Power Purchase Agreement or Interconnection Agreement and in accordance with subparagraph 1(c) hereof, (ii) sell, assign or otherwise dispose (by operation of law or otherwise) of any part of its interest in the Power Purchase Agreement or Interconnection Agreement, except as provided in the Power Purchase Agreement or Interconnection Agreement, or (iii) amend or modify the Power Purchase Agreement or Interconnection Agreement in any manner materially adverse to the interest of the Lenders in the Power Purchase Agreement and Interconnection Agreement as collateral security under the Security Agreement. (c) The City agrees to deliver duplicates or copies of all notices of default delivered by the City under or pursuant to the Power Purchase Agreement or Interconnection Agreement to Administrative Agent in accordance with the notice provisions of this Consent. The City shall deliver any such notices concurrently with delivery of the notice to Borrower under the Power Purchase Agreement or Interconnection Agreement. To the extent that a cure period is provided under the Power Purchase Agreement or Interconnection Agreement, Administrative Agent shall have the same period of time to cure the breach or default that Borrower is entitled to under the Power Purchase Agreement or Interconnection Agreement, except that if the City does not deliver the default notice to Administrative Agent concurrently with delivery of the notice to Borrower under the Power Purchase Agreement or Interconnection Agreement, then as to Administrative Agent, the applicable cure period under the Power Purchase Agreement or Interconnection Agreement shall begin on the date on which the notice is given to Administrative Agent. If possession of the Project is necessary to cure such breach or default, and Administrative Agent or its designee(s) or assignee(s) declare Borrower in default and commence foreclosure proceedings, Administrative Agent or its designee(s) or assignee(s) will be allowed a reasonable period to complete such proceedings so long as Administrative Agent or its designee(s) continue to perform any monetary obligations under the Power Purchase Agreement or Interconnection Agreement, as the case may be. The City consents to the transfer of Borrower's interest under the Power Purchase Agreement and Interconnection Agreement to the Lenders or Administrative Agent or their designee(s) or assignee(s) or any of them or a purchaser or grantee at a foreclosure sale by judicial or nonjudicial foreclosure and sale or by a conveyance by Borrower in lieu of foreclosure and agrees that upon such foreclosure, sale or conveyance, the City shall recognize the Lenders or Administrative Agent or their designee(s) or assignee(s) or any of them or other purchaser or grantee as the applicable party under the Power Purchase Agreement and Interconnection Agreement (provided that such Lenders or Administrative Agent or their designee(s) or assignee(s) or purchaser or grantee assume the obligations of Borrower under the Power Purchase Agreement and Interconnection Agreement, including, without limitation, satisfaction and compliance with all credit provisions of the Power Purchase Agreement and Interconnection Agreement, if any, and provided further that such Lenders or Administrative Agent or their designee(s) or assignee(s) or purchaser or grantee has a creditworthiness equal to or better than Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 51  Packet Pg. 339 of 389  040914 jrm 0180042 31 Borrower, as reasonably determined by City). (d) In the event that either the Power Purchase Agreement or Interconnection Agreement, or both is rejected by a trustee or debtor-in-possession in any bankruptcy or insolvency proceeding, and if, within forty-five (45) days after such rejection, Administrative Agent shall so request, the City will execute and deliver to Administrative Agent a new power purchase agreement or interconnection agreement, as the case may be, which power purchase agreement or interconnection agreement shall be on the same terms and conditions as the original Power Purchase Agreement or Interconnection Agreement for the remaining term of the original Power Purchase Agreement or Interconnection Agreement before giving effect to such rejection, and which shall require Administrative Agent to cure any defaults then existing under the original Power Purchase Agreement or Interconnection Agreement. Notwithstanding the foregoing, any new renewable power purchase agreement or interconnection agreement will be subject to all regulatory approvals required by law. The City will use good faith efforts to promptly obtain any necessary regulatory approvals. (e) In the event Administrative Agent, the Lenders or their designee(s) or assignee(s) elect to perform Borrower's obligations under the Power Purchase Agreement and Interconnection Agreement, succeed to Borrower’s interest under the Power Purchase Agreement and Interconnection Agreement, or enter into a new power purchase agreement or interconnection agreement as provided in subparagraph 1(d) above, the recourse of the City against Administrative Agent, Lenders or their designee(s) and assignee(s) shall be limited to such Parties’ interests in the Project, and the credit support required under the Power Purchase Agreement and Interconnection Agreement, if any. (f) In the event Administrative Agent, the Lenders or their designee(s) or assignee(s) succeed to Borrower's interest under the Power Purchase Agreement and Interconnection Agreement, Administrative Agent, the Lenders or their designee(s) or assignee(s) shall cure any then-existing payment and performance defaults under the Power Purchase Agreement or Interconnection Agreement, except any performance defaults of Borrower itself, which by their nature are not susceptible of being cured. Administrative Agent, the Lenders and their designee(s) or assignee(s) shall have the right to assign all or a pro rata interest in the Power Purchase Agreement and Interconnection Agreement to a person or entity to whom Borrower’s interest in the Project is transferred, provided such transferee assumes the obligations of Borrower under the Power Purchase Agreement and Interconnection Agreement and has a creditworthiness equal to or better than Borrower, as reasonably determined by the City. Upon such assignment, Administrative Agent and the Lenders and their designee(s) or assignee(s) (including their agents and employees) shall be released from any further liability thereunder accruing from and after the date of such assignment, to the extent of the interest assigned. 2. REPRESENTATIONS AND WARRANTIES. The City hereby represents and warrants that as of the date of this Consent: (a) It (i) is duly formed and validly existing under the laws of the State of California, and (ii) has all requisite power and authority to enter into and to perform its obligations hereunder and under the Power Purchase Agreement and Interconnection Agreement, and to carry out the terms hereof and thereof and the transactions contemplated hereby and thereby; (b) the execution, delivery and performance of this Consent, the Power Purchase Agreement and the Interconnection Agreement have been duly authorized by all necessary action on its part and do not require any approvals, material filings with, or consents of any entity or person which have not previously been obtained or made; (c) each of this Consent, the Power Purchase Agreement, and the Interconnection Agreement is in full force and effect; Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 52  Packet Pg. 340 of 389  040914 jrm 0180042 32 (d) each of this Consent, the Power Purchase Agreement, and the Interconnection Agreement has been duly executed and delivered on its behalf and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, except as the enforceability thereof may be limited by (i) bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general equitable principles (whether considered in a proceeding in equity or at law); (e) there is no litigation, arbitration, investigation or other proceeding pending for which the City has received service of process or, to the City’s actual knowledge, threatened against the City relating solely to this Consent, the Power Purchase Agreement, or the Interconnection Agreement and the transactions contemplated hereby and thereby; (f) the execution, delivery and performance by it of this Consent, the Power Purchase Agreement, and the Interconnection Agreement, and the consummation of the transactions contemplated hereby, will not result in any violation of, breach of or default under any term of any material contract or material agreement to which it is a party or by which it or its property is bound, or of any material requirements of law presently in effect having applicability to it, the violation, breach or default of which could have a material adverse effect on its ability to perform its obligations under this Consent; (g) neither the City nor, to the City’s actual knowledge, any other party to the Power Purchase Agreement or Interconnection Agreement, is in default of any of its obligations thereunder; and (h) to the City’s actual knowledge, (i) no Force Majeure Event exists under, and as defined in, the Power Purchase Agreement or Interconnection Agreement and (ii) no event or condition exists which would either immediately or with the passage of any applicable grace period or giving of notice, or both, enable either the City or Borrower to terminate or suspend its obligations under the Power Purchase Agreement or the Interconnection Agreement. Each of the representations and warranties set forth herein shall survive the execution and delivery of this Consent and the consummation of the transactions contemplated hereby. 3. NOTICES. All notices required or permitted hereunder shall be given, in writing, and shall be effective (a) upon receipt if hand delivered, (b) upon telephonic verification of receipt if sent by facsimile and (c) if otherwise delivered, upon the earlier of receipt or three (3) Business Days after being sent registered or certified mail, return receipt requested, with proper postage affixed thereto, or by private courier or delivery service with charges prepaid, and addressed as specified below: If to the City: [ ] [ ] [ ] Telephone No.: [ ] Facsimile No.: [ ] Attn: [ ] If to Administrative Agent: [ ] [ ] [ ] Telephone No.: [ ] Facsimile No.: [ ] Attn: [ ] Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 53  Packet Pg. 341 of 389  040914 jrm 0180042 33 If to Borrower: [ ] [ ] [ ] Telephone No.: [ ] Facsimile No.: [ ] Attn: [ ] Any party shall have the right to change its address for notice hereunder to any other location within the United States by giving thirty (30) days written notice to the other parties in the manner set forth above. 4. ASSIGNMENT, TERMINATION, AMENDMENT. This Consent shall be binding upon and benefit the successors and assigns of the Parties hereto and their respective successors, transferees and assigns (including without limitation, any entity that refinances all or any portion of the obligations under the Financing Agreement). The City agrees (a) to confirm such continuing obligation, in writing, upon the reasonable request of (and at the expense of) Borrower, Administrative Agent, the Lenders or any of their respective successors, transferees or assigns, and (b) to cause any successor-in-interest to the City with respect to its interest in the Power Purchase Agreement or Interconnection Agreement to assume, in writing and in form and substance reasonably satisfactory to Administrative Agent, the obligations of City hereunder. Any purported assignment or transfer of the Power Purchase Agreement or Interconnection Agreement not in conjunction with the written instrument of assumption contemplated by the foregoing clause (b) shall be null and void. No termination, amendment, or variation of any provisions of this Consent shall be effective unless in writing and signed by the parties hereto. No waiver of any provisions of this Consent shall be effective unless in writing and signed by the party waiving any of its rights hereunder. 5. GOVERNING LAW. This Consent shall be governed by the laws of the State of California applicable to contracts made and to be performed in California. The federal courts or the state courts located in California shall have exclusive jurisdiction to resolve any disputes with respect to this Consent with the City, Assignor, and the Lender or Lenders irrevocably consenting to the jurisdiction thereof for any actions, suits, or proceedings arising out of or relating to this Consent. 6. COUNTERPARTS. This Consent may be executed in one or more duplicate counterparts, and when executed and delivered by all the parties listed below, shall constitute a single binding agreement. 7. SEVERABILITY. In case any provision of this Consent, or the obligations of any of the Parties hereto, shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions, or the obligations of the other Parties hereto, shall not in any way be affected or impaired thereby. 8. ACKNOWLEDGMENTS BY BORROWER. Borrower, by its execution hereof, acknowledges and agrees that neither the execution of this Consent, the performance by the City of any of the obligations of the City hereunder, the exercise of any of the rights of the City hereunder, or the acceptance by the City of performance of the Power Purchase Agreement by any party other than Borrower shall (1) release Borrower from any obligation of Borrower under the Power Purchase Agreement or Interconnection Agreement, (2) constitute a consent by the City to, or impute knowledge to the City of, any specific terms or conditions of the Financing Agreement, the Security Agreement or any of the other Financing Documents, or (3) except as expressly set forth in this Consent, constitute a waiver by the City of any of its rights under the Power Purchase Agreement or Interconnection Agreement. Borrower and Administrative Agent acknowledge hereby for the benefit of City that none of the Financing Agreement, the Security Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 54  Packet Pg. 342 of 389  040914 jrm 0180042 34 Agreement, the Financing Documents or any other documents executed in connection therewith alter, amend, modify or impair (or purport to alter, amend, modify or impair) any provisions of the Power Purchase Agreement. CITY OF PALO ALTO ADMINISTRATIVE AGENT APPROVED AS TO FORM Senior Deputy City Attorney BORROWER APPROVED City Manager Director of Utilities Item 10 Attachment C - Palo Alto CLEAN Power Purchase Agreement (redline)        Item 10: Staff Report Pg. 55  Packet Pg. 343 of 389  City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: March 18, 2024 Report #:2403-2719 TITLE SECOND READING: Adopt a Park Dedication Ordinance for the Tower Well site, 0.19 acres of land (8,437 square feet) at 201 Alma Street and approve the proposed name “Tower Well Park” as Recommended by the Parks and Recreation Commission. CEQA status ‐ not a project. (FIRST READING: March 4, 2024 PASSED 7-0) BACKGROUND This was heard by the City Council on March 4, 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 Dedication Ordinance for Tower Well Site at 201 Alma Street APPROVED BY: Mahealani Ah Yun, City Clerk Item 11 Item 11 Staff Report        Item 11: Staff Report Pg. 1  Packet Pg. 344 of 389  NOT YET ADOPTED 1 100_20231113_ts24 ORDINANCE NO. Ordinance of the Council of the City of Palo Alto Dedicating the Area to Become the Tower Well Park The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Improvements. The City Council finds and declares that: (a) Article VIII of the Charter of the City of Palo Alto and section 22.08.004 of the Palo Alto Municipal Code specify that land intended to be used for park purposes can be dedicated for such use by ordinance. (b) The Tower Well Park site (“site”) is defined as the area described in Exhibit A-31 to this ordinance. Generally, the site is at the corner of Alma Street and Hawthorne Avenue, and contains a water tower constructed in 1910. The Palo Alto Historical Association remarks that “[w]hen constructed in 1910, the water tower was the first major visible infrastructure of the City’s utilities and is a symbol of the City’s successful beginnings and forward thinking leaders.” (c) The City intends to dedicate the Tower Well Park as parkland through this ordinance. SECTION 2. The City Council hereby dedicates the site pursuant to Article VIII of the Charter of the City of Palo Alto and section 22.08.004 of the Palo Alto Municipal Code. SECTION 3. Section 22.08.440 is hereby added to Chapter 22.08 (Park dedications) to read as follows: 22.08.440 Tower Well Park That certain parcel of land known as the Tower Well Park, as delineated and described in Exhibit A-31, is hereby reserved for park, playground, recreation or conservation purposes. SECTION 4. Exhibit A-31 of this ordinance shall be codified as Exhibit A-31 to the Exhibits of Title 22. SECTION 5. The City Council finds that this ordinance is not a project within the meaning of CEQA. // // // // Item 11 Attachment A - Park Dedication Ordinance for Tower Well Site at 201 Alma Street        Item 11: Staff Report Pg. 2  Packet Pg. 345 of 389  NOT YET ADOPTED 2 100_20231113_ts24 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 of Community Services Item 11 Attachment A - Park Dedication Ordinance for Tower Well Site at 201 Alma Street        Item 11: Staff Report Pg. 3  Packet Pg. 346 of 389  A.P.NO. 120-25-060 APRIL 15, 1996 REQUESTED BY: JANET FREELAND APPROVED BY: JAMES D. KIEHL ,~.K. CREATED BY: JAMES T. BOURQUIN -'-'~ CHECKED BY: JAY E. REMLEY, SR. ffZ" LEGAL DESCRIPTION PARCEL 1 All that real property situated in the City of Palo Alto, County of Santa Clara, State of California ¯ described as follows. Being a portion of Lot 1, Block 2, as shown upon that certain map of the re-subdivision of Block 2, recorded on September 6, 1902 in Volume F-3 of Maps, Page 4, said re-subdivision being a portion of that certain map entitled "UNIVERSITY PARK", recorded on February 27, 1889 in Book D of Maps, Page 69; Beginning at the intersection of the northeasterly line of Alma Street with the southeasterly line of Hawthorne Avenue; THENCE, northeasterly 112.50 feet along.the southeasterly line of Hawthorne Avenue; THENCE, southeasterly 75.00 feet and parallel with Alma Street; THENCE, southwesterly 112.50 feet and parallel with Hawthorne Avenue; THENCE, northwesterly 75.00 feet along the northeasterly line of Alma Street to the POINT OF BEGINNING, Said Parcel 1 contains 8,437.50 square feet more or~ less, Said Parcel 1 is shown on attached map Exhibit "B" .and made a part hereof, LEGAL: 12025060.wpd PLAT: 12025060.DWG End of Legal Description Exhibit "A" EXHIBIT A ( 1 of 2) (to Deed) Exhibit A-31Item 11 Attachment A - Park Dedication Ordinance for Tower Well Site at 201 Alma Street        Item 11: Staff Report Pg. 4  Packet Pg. 347 of 389  35' I,i i,I Z HAWTHORNE AVENUE -- P.D.B. PARCEL =:-XHIBTT_ 35' IIBSO¯ PARCEL A.P.No, ]80-85-060 DRAWN BY: J. KIEHL CHECKED BY: J. BI:]URQUIN..~rB CHECKED BY: J. REMLEY/#'~: LEGAL F]LENAME: 18085060 DRAWING F]LENAME: 12025060 112.50' s°°& A,P.No , 77.13' PARCEL 1 WELL SITE UNIVERSITY PARK A.P,No. CITY OF PALD ALTO, CALIFORNIA EXHIBIT A (2 of 2) 35.37" d Z O_ <£ 180-85-053 SCALE: l" = P.L.S. 7158 APPROVED: REVISION: (4) 4/18/96 Item 11 Attachment A - Park Dedication Ordinance for Tower Well Site at 201 Alma Street        Item 11: Staff Report Pg. 5  Packet Pg. 348 of 389  City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Public Works Meeting Date: March 18, 2024 Report #:2402-2648 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 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. During passage of the tree ordinance updates in January, staff confirmed during the Council questions that based on CAO analysis of PAMC Chapter 18.09, the updated Title 8 and applicable state law, the tree ordinance would not apply to stand alone Table 1 ADU’s. Staff did not recommend adding specific language to that effect at that time. At the second reading of the tree ordinance updates, several council members expressed concern that the updated tree ordinance did not explicitly state that PAMC 18.09 Table 1 ADUs were exempt. To address this concern, the following proposed language has been added as 8.10.050 (b)(4): The tree is proposed for removal to accommodate an ADU constructed pursuant to Section 18.09.030, or because removal is necessary to allow an ADU constructed pursuant to Section 18.09.040 to achieve the minimum standards set forth in state law. 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: Brad Eggleston, Director Public Works/City Engineer Item 12 Item 12 Staff Report        Item 12: Staff Report Pg. 1  Packet Pg. 349 of 389  *NOT YET APPROVED* Attachment A 1 0010_20240212_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 12 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 12: Staff Report Pg. 2  Packet Pg. 350 of 389  *NOT YET APPROVED* Attachment A 2 0010_20240212_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 12 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 12: Staff Report Pg. 3  Packet Pg. 351 of 389  *NOT YET APPROVED* Attachment A 3 0010_20240212_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 12 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 12: Staff Report Pg. 4  Packet Pg. 352 of 389  *NOT YET APPROVED* Attachment A 4 0010_20240212_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 12 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 12: Staff Report Pg. 5  Packet Pg. 353 of 389  *NOT YET APPROVED* Attachment A 5 0010_20240212_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 12 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 12: Staff Report Pg. 6  Packet Pg. 354 of 389  *NOT YET APPROVED* Attachment A 6 0010_20240212_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 12 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 12: Staff Report Pg. 7  Packet Pg. 355 of 389  *NOT YET APPROVED* Attachment A 7 0010_20240212_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 12 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 12: Staff Report Pg. 8  Packet Pg. 356 of 389  *NOT YET APPROVED* Attachment A 8 0010_20240212_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 12 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 12: Staff Report Pg. 9  Packet Pg. 357 of 389  *NOT YET APPROVED* Attachment A 9 0010_20240212_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 12 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 12: Staff Report Pg. 10  Packet Pg. 358 of 389  *NOT YET APPROVED* Attachment A 10 0010_20240212_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 12 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 12: Staff Report Pg. 11  Packet Pg. 359 of 389  *NOT YET APPROVED* Attachment A 11 0010_20240212_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 12 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 12: Staff Report Pg. 12  Packet Pg. 360 of 389  *NOT YET APPROVED* Attachment A 12 0010_20240212_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. (2)(4) The tree is proposed for removal to accommodate an ADU constructed pursuant to Section 18.09.030, or because removal is necessary to allow an ADU constructed pursuant to Section 18.09.040 to achieve the minimum standards set forth in state law. (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. Item 12 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 12: Staff Report Pg. 13  Packet Pg. 361 of 389  *NOT YET APPROVED* Attachment A 13 0010_20240212_mv30 (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: (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. Item 12 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 12: Staff Report Pg. 14  Packet Pg. 362 of 389  *NOT YET APPROVED* Attachment A 14 0010_20240212_mv30 (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, 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. Item 12 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 12: Staff Report Pg. 15  Packet Pg. 363 of 389  *NOT YET APPROVED* Attachment A 15 0010_20240212_mv30 (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. (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 Item 12 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 12: Staff Report Pg. 16  Packet Pg. 364 of 389  *NOT YET APPROVED* Attachment A 16 0010_20240212_mv30 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. (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. Item 12 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 12: Staff Report Pg. 17  Packet Pg. 365 of 389  *NOT YET APPROVED* Attachment A 17 0010_20240212_mv30 (f) The remedies and penalties provided in this section are cumulative and not exclusive. 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 12 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 12: Staff Report Pg. 18  Packet Pg. 366 of 389  *NOT YET APPROVED* Attachment A 18 0010_20240212_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 12 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 12: Staff Report Pg. 19  Packet Pg. 367 of 389  *NOT YET APPROVED* Attachment A 19 0010_20240212_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 12 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 12: Staff Report Pg. 20  Packet Pg. 368 of 389  City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Manager Meeting Date: March 18, 2024 Report #:2312-2321 TITLE Discussion and Direction Regarding the City Council Procedures and Protocols Handbook - Annual Discussion as Recommended by the Policy & Services Committee RECOMMENDATION The Policy and Services Committee recommends that the City Council discuss potential substantive edits, changes, and revisions to the City Council Procedures and Protocols Handbook (CPP or Handbook). These suggestions were discussed at Committee in November 2023 and the Committee forwarded them all to the full City Council for review and discussion. After City Council discussion and direction regarding the items of interest, staff can return with complete text for review at a future meeting submitted directly to the full City Council or through the Policy and Services Committee, if so assigned. BACKGROUND The Municipal Code provides that the City Council shall adopt “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” (PAMC section 2.04.100). The City Council adopted the first version of the City Council Procedures and Protocols Handbook in the early 2000s and have made modifications over the years. The Handbook calls on the City Council to review its procedural rules and protocols annually (CPP, Procedures Section 8.1). This is typically done at the City Council’s January/February retreat (or soon thereafter depending on agenda availability). The Handbook has been amended numerous times over a 20-year period with updates to particular sections, but the Handbook had grown hard to follow. As a result, the whole document was revised, reorganized, and reformatted in early 2023. This was a significant effort, led by the City Council, to improve Handbook readability and ease of use for City Council Members, Staff and the public. Final Item 13 Item 13 Staff Report        Item 13: Staff Report Pg. 1  Packet Pg. 369 of 389  action on this most recent version of the Handbook was on April 24, 20231; the Handbook is online at: https://www.cityofpaloalto.org/Departments/City-Clerk/City-Council (scroll to the bottom of the page). 2. Staff will provide an updated version of the Handbook as a supplemental report to this report and will also upload it to the aforementioned link. Attachment A) for this annual discussion at its November 14, 2023 meeting3 and provided some initial thoughts on the topics. The Committee did not prioritize the items but rather did an initial review. The minutes summarizing the Committee discussion are included as Attachment B to this report. ANALYSIS 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. 1 City Council April 24, 2023 Agenda Item 6: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=12660 2 City Council February 26 Agenda Item 15: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13357 City Council February 5 Agenda Item 13: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13345 3 November 14, 2023 Policy and Services Committee Item 3: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=12180 Item 13 Item 13 Staff Report        Item 13: Staff Report Pg. 2  Packet Pg. 370 of 389  suggestions from City Council and staff are all included in Attachment A. These suggestions are included for City Council consideration and discussion. Staff requests City Council review of the list of suggested Handbook changes. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT Attachment A reflect feedback from Staff and the City Council. Staff received Handbook feedback from the City Council prior to the November Policy and Services Committee discussion. ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 13 Item 13 Staff Report        Item 13: Staff Report Pg. 3  Packet Pg. 371 of 389  Attachment A – Page 1 of 2 Attachment A – Suggested Handbook Changes for 2024 Handbook Revisions Changes are as of late 2023 Note: Staff has not yet determined the exact sections to which these suggested changes will apply if the City Council chooses to include them as changes. In an effort to keep the revised Handbook organized, Staff requests the ability to draft the exact language and evaluate the best placement within the Handbook document as an administrative task and to bring the suggested final language to City Council for the items that the City Council chooses to advance from the list below. Suggestions from Council Members (as of November 2023): - Kou: no proposed changes - Stone: no proposed changes - Tanaka: no proposed changes - Veenker: o Revisit discussion on remote participation for public comment (audio and video) o Procedures Page 14 (Sec. 3) Order of the Agenda: Consider adding a land acknowledgement at the start of meetings - Lauing: o Procedures Page 30 (Sec. 5.1(b)1 says “The Council limits the total time up to 30 minutes per meeting for General Public Comment.” We sometimes don’t abide by that. Should we abide by it strictly or have an exception clause (such as “at the Mayor’s/Presiding Officer’s discretion the 30-minute limit can be extended”)? o Consider eliminating call-in public comment. - Lythcott-Haims: o Procedures page 30, Sec 5.1(a)(1) Mentions that the public can access the meeting online. Given recent events, I feel we should discuss whether to discontinue online public comment for items not on the agenda. o Procedures page 34, Sec 7(b) says there is a 2-3-year time limit on City Council priorities. This limitation was of concern to many of us last year. Feels like we should discuss. o Procedures page 34, Sec 7(b) also says Council will provide (only) 2-3 specific objectives within a priority whereas this year we had many more. We should discuss whether we are going to hold to this expectation in coming years or whether we need to amend the handbook. - Burt: o We don’t have anything under the Consent Calendar on how long the members of the public get to speak if speaking on multiple Consent items. I recommend limiting it to 3 minutes total and it can be reduced according to other procedures on public speaker time reductions. Item 13 Attachment A - City Council and Staff Proposed Changes to Council Handbook, as of Nov. 2023        Item 13: Staff Report Pg. 4  Packet Pg. 372 of 389  Attachment A – Page 2 of 2 o When Council members vote no on a Consent item and get to speak about their no vote, we do not have a time limit set for them. I recommend it be limited to 3 minutes total, no matter how many items a Council member has voted no on. o Council members’ use of public-funded events for their own political purposes: need to clarify rules on this per FPPC. o Protocols Page 37, Sec. 1.4(b)1: Council members should address each other with formal titles. We should update this section to address that Committee meetings can be less formal. o Procedures Page 6, Sec. 1.2(d): Under CAO Committee, there is nothing about an annual responsibility to schedule CAO performance evaluations. Language should be added to address this scheduling responsibility for this committee. Also should add that the CAO committee can review the contract on who will do the CAO reviews as well as review and recommendation to Council related to CAO recruitments. o Agenda setting for Committee Business: the CPP does not spell out how Committee agenda setting is done. It should say that Committee agenda setting is done between the staff and the Committee chair based on the Council referrals and annually assigned items. Can also include that agenda setting will include items within the Council guided delegated topics of the Committee. o New recommendation: That a Committee would be able to make recommendations to the City Council for a Committee to be able to discuss/explore a specific topic instead of always using a Colleagues’ Memo to Council to get a topic delegated to the Committee. Note from Staff: For the Committee’s consideration when looking at the suggestions related to remote / call-in participation, it should be noted that the City Council may revise its procedures by ending (either indefinitely or temporarily) the call-in option for public comment. Doing so, however, would foreclose the ability of City Council Members to use streamlined noticing procedures under AB 2449 where there is just cause or emergency circumstances. To use streamlined remote attendance procedures under AB 2449, the agenda must provide an opportunity for all public comment via a call-in option, an internet-based option, and an in- person option. (Government Code section 54953 (f)(1)(C)). Proposed Changes for City Council Handbook from Staff (as of November 2023): A. Establish a protocol related to the gifts the City can receive from international partners such as Sister Cities. The intention is to set a maximum amount of a gift that a City representative can receive on behalf of the City. This would also include a note that City officials cannot accept hotel accommodations from an international partner. B. Establish as a procedure, additional guidance for proclamations, specifically identifying guidelines on if and why proclamations can be brought forward. C. Note: The suggestion related to additional ad hoc committee guidelines has been removed for the March 2024 City Council discussion Item 13 Attachment A - City Council and Staff Proposed Changes to Council Handbook, as of Nov. 2023        Item 13: Staff Report Pg. 5  Packet Pg. 373 of 389  POLICY AND SERVICES COMMITTEE SUMMARY MINUTES Page 1 of 14 Regular Meeting November 14, 2023 The Policy and Services Committee of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 7:00 P.M. Present: Tanaka (Chair), Lauing, Veenker Absent: Call to Order Vinh Nguyen called roll and noted three were present. Chair Tanaka called the meeting to order. Public Comment There were no requests to speak. Agenda Items 1. Recommendation to the City Council to Adopt an Urgency Ordinance and an Interim Ordinance That Allows the Director of Planning and Development Services to Extend Planning Entitlements up to an Additional 18 Months Until the City’s Housing Element is Certified by the State Department of Housing and Community Development. Environmental Review: Exempt from CEQA in Accordance with CEQA Guidelines 15061(b)(3). Planning & Development Services Director Jonathan Lait announced that this was a request to bridge the gap between some planning entitlements that would lapse in December and one in January. Approving the ordinances would allow for an 18-month extension of the planning entitlements. He commented that the homebuilding environment had remained volatile, so some projects had not moved to the building permit phase. It was anticipated to be a short- term measure. They were not requesting a change in the code. There were two ordinances for the Committee’s consideration, which were essentially the same – one an urgency ordinance, which would take place immediately and be valid for 45 days, and the second was essentially the same but would require a first and a second reading. It would not be effective by the time of the lapsing of the planning entitlements and was why they were requesting both ordinances. If there was support by the Committee, staff planned to include it on the Consent Calendar for the City Council meeting in December. Item 13 Attachment B - Policy and Services November 2023 Summary Minutes        Item 13: Staff Report Pg. 6  Packet Pg. 374 of 389  SUMMARY MINUTES Page 2 of 14 Policy & Services Meeting Summary Minutes: 11/14/2023 Public Comments Megan Watson with Grubb Properties, which owned 788 San Antonio, thanked the Committee for the prompt response to the entitlement extension request. Their entitlement was to expire January 6, 2024. They supported the goals of both ordinances but requested the HEU process be struck from Section 2 of both ordinances, and she detailed the reason for the request. Theu asked that it be modified and the authority be sunset on December 31, 2024. They had submitted an email detailing the technical language. Council Member Veenker asked if staff had a response to the public comment. She asked if there could be language added to indicate there could be an extension for good cause shown. Director Lait expressed this was not intended to be a long-term ordinance, and he thought connecting it to the Housing Element reflected the City relying on these sites for housing opportunities. The projects identified in the Staff Report would receive an 18-month extension. He was unsure about other applications between certification and the end of 2024 and what it would mean for those projects if certification should happen sooner. He hoped folks were mindful of their entitlement expiration dates and coming in for extensions. There would be no [inaudible] if the Committee felt extending it through 2024 was appropriate. He thought it would be fine to add language indicating there could be an extension for good cause shown. Council Member Lauing did not see any downside to this. He queried if this would be precedent setting beyond the scope of the ordinance. MOTION: Council Member Veenker moved, seconded by Council Member Lauing to recommend the City Council forward a recommendation to the City Council to adopt the two attached ordinances (Attachment A & B), with the amendment that the language “and for good cause shown” be added in section 2 of the proposed ordinances after “his/her discretion” and that the sunset date would b e December 2024 and not the HCD approval of the Housing Element. MOTION PASSED: 3-0 2. Staff Recommends the Policy and Services Committee Recommend the City Council Accept the Status Update of the Audit of the Building and Permit Review Report Planning and Development Services Director Jonathan Lait introduced Senior Operations Manager Sarah McRee, who was involved in the permitting operation from system improvements and making changes to that and had been working on refinements to address the audit being reported on at this meeting. He also introduced Chief Building Official George Hoyt. Senior Operations Manager Sarah McRee mentioned that she would provide a status update on the 17 recommendations from the Building and Permit Review Audit. She declared that she would be discussing the background, three key areas of improvement, next steps, and the Item 13 Attachment B - Policy and Services November 2023 Summary Minutes        Item 13: Staff Report Pg. 7  Packet Pg. 375 of 389  SUMMARY MINUTES Page 3 of 14 Policy & Services Meeting Summary Minutes: 11/14/2023 recommendation. She outlined the 3 objectives that had been presented in June 2022, which resulted in 17 actionable recommendations for implementation. She furnished a slide listing the 17 recommendation statuses. For the purpose of the update, staff had grouped the recommendations into three key areas for the discussion – a staffing model, technology and customer accessibility of information, and process training and operations. She noted that nine recommendations had been completed, seven were in progress, and one had not been started. She presented a slide related to the staffing model and noted that the initial six recommendations were rooted in the staffing model for building inspection and plan review services. She detailed what the recommendations required. She spoke of building inspection and its services. Throughout the pandemic, there had been a shift in the labor market, which she elaborated on. She presented a chart showing vacancies, and she stated that wait times had increased due to lacking staff. Historically consultants had been hired to augment services, but they had not been able to secure consultants during that time. Planning and Development Services (PDS) had met with eight of the City’s on-call firms and learned that there had been a shortage of building inspectors. The City had instituted a training program, so there was a pipeline for potential staff, which had reduced wait times and improved service delivery. She noted that the last three building inspector hires had been part of the consultant trainees. The City was previously in a hybrid model and there needed to be transition to in-house staffing, so two FTE inspectors had been added in the last year, and a new classification of a senior building inspector had been created and positions reclassed to allow flexibility in recruitment strategy as well as for retention. Temporary, part-time staff had been dedicated administratively to help support and expedite recruitments. All these activities resulted in inspections within 48 hours of a request. The plan review function was supported by many departments. There were three main areas within PDS. She provided a graph showing the vacancies in all the programs, which impacted review times. Focusing on the building plan reviews, the program was previously 100% contracted out to consultants, and they had experienced same challenges. The program needed to be transitioned to a hybrid model, and they added 2.0 in-house plan check engineers, created a new classification for a senior plan check engineer, and reclassed all positions. The percentage of on-time reviews had increased due to hiring one in-house staff. Staff expected continued improvement as the second vacancy was filled. Through the structural changes made, six listed recommendations were complete. They were positioned to monitor and make adjustments as needed. The second key area of improvement had been grouped as technology and customer accessibility of information. There were five recommendations to address how information and guidance was provided to customers through the technology platforms. Over the last year, substantial improvements had been made. They continued to evaluate the technology used. This year they had completed a Request for Proposal (RFP) for the electronic document review system. She detailed the changes that had been made to the website. The submittal checklists and requirements had also been reduced. A user navigation guide had been created and published for Accela Citizen Access (ACA). They continued to look for opportunities to streamline the application process, and that had been done in the SolarAPP+ and instant permits. Heat pump water heaters had been added as part of qualifying instant permits, and permits could be obtained on the website. She noted that 450 instant permits had been issued July through November of 2023 and only 551 had been issued in Item 13 Attachment B - Policy and Services November 2023 Summary Minutes        Item 13: Staff Report Pg. 8  Packet Pg. 376 of 389  SUMMARY MINUTES Page 4 of 14 Policy & Services Meeting Summary Minutes: 11/14/2023 totality last year. They hoped to add more permits in the next six months. All the changes had streamlined efforts for applicants. User access had been improved for the website and the ACA where possible. Although many recommendations had been addressed, PDS identified four of the five recommendations as in progress because technology would continue to be updated, and they hoped to bring those forward in the next iterations. They would continue to develop fillable forms in the online permit system, and they were exploring third-party wizards and applications to improve that system. They wanted to expand instant permits to include heat pump mechanical residential replacements and residential bath and kitchen remodels. Chair Tanaka thought this would help increase efficacy. He voiced that a big source of building permit process complaints was the lack of knowledge transfer from planner to planner. He added that the private industry used a CRM system to solve the problem. He requested Senior Operations Manager McRee speak about the lack of knowledge transfer. Senior Operations Manager McRee replied that a CRM system was not being considered currently. She thought it would tie into the next area of developing standard operating procedures. Accela was limited in the functionalities, so it was not meant to be a CRM system. A CRM was something they could explore. She continued to speak of key areas of improvements. She shared a list of six recommendations, which tied into updating the internal processes, documenting internal procedures, and training staff , which was to increase quality control and consistency in the application and permitting process. Over the last year, they looked at the permitting process from beginning to end from the customer and the staff processing perspectives. She outlined areas of improvement they had made immediately. She highlighted that over the summer they had an appointment pilot program, which was to understand if required appointments would be beneficial. Currently virtual and in-person appointments were offered, but they were not required. An area the audit focused on was training, and some of the changes made in building inspection and plan review programs allowed some of the capacity challenges related to dedicating time for training. Staff now had the ability to train beyond minimum certifications, and they were bringing in training beyond technical expertise. A department-wide customer service mandatory training was held last month. She supplied a summary slide outlining her presentation on process, training, and operations. Work was ongoing, and they were not done making changes, so once the changes were complete, training materials needed to be developed and standard operating procedures created. The PDS strategic plan had not been started, and it would begin upon completion of the majority of the substantial changes. Council Member Lauing queried if there were results to report on the pilot. He questioned if there should be follow-up done to ensure customers understood the process. He asked if direct outreach could be done, which he thought should be included in the processes. He suggested spot checking with customers to get their input concerning the process. Senior Operations Manager McRee did not have the pilot information for this meeting. She commented that it had been interesting, and she detailed what had been done. The next phase was a work in progress, but it would focus on certain permit types that might benefit from an Item 13 Attachment B - Policy and Services November 2023 Summary Minutes        Item 13: Staff Report Pg. 9  Packet Pg. 377 of 389  SUMMARY MINUTES Page 5 of 14 Policy & Services Meeting Summary Minutes: 11/14/2023 appointment. Concerning follow-up and direct outreach, staff had been actively monitoring applications, and they had started proactively reaching out to applicants in certain circumstances. She noted that the simplified checklist helped. They had customer surveys for almost every area of the department, and they were trying to print survey cards so they could provide a survey card to a customer every time they interacted with a customer. Council Member Veenker asked if staff reached out every time an application was not accepted and how that had gone. She thought it was a great practice. Senior Operations Manager McRee indicated they did reach out every time an application was not accepted. Chief Building Official George Hoyt expressed that, according to staff, reaching out to applicants had gone fairly well. It could be very beneficial in providing needed clarification to staff, which would allow the customer to complete their application. To give it a personal touch, they were also promoting more phone calls versus email. If there was a communication email disconnect, customers were invited in for a virtual or in-person meeting. Chair Tanaka loved how they were doing surveys, and he liked how they were trying to solicit feedback. He thought their survey results should be published because it could be inspiring for staff and the public. He spoke of organizations having incentives for filling out surveys. He asked what was being done to incentivize participation in a short survey to get somewhat continuous feedback. Senior Operations Manager McRee answered that the next step of the survey process was to increase participation by printing very short, simple ranking surveys on cards that would be distributed at the end of every interaction. Chair Tanaka thought it might be better to include a survey on every email generated or at the end of every phone call rather than handing out cards. He suggested having kiosks at the Development Center. He noted that people were generally impressed with staff, the City, and what was offered, but he had experienced areas of concern around the Development Center and Utilities. He discussed customer service being under pressure but not having to be adversarial, and he felt training was important. He sensed that the majority of staff was doing an amazing job, but he heard that there were certain staff members at the Development Center that people would go out of their way to avoid. He inquired if employee evaluations were done and if staff commented on performance reviews and provided feedback and coaching. In his experience, people were afraid to livestream especially related to building permits due to fear of retaliation, and he did not know if retaliation was happening. He asked staff to speak to that issue. He loved the idea of staff randomly calling people for feedback. He believed the City was a customer service organization. He shared a story of hearing about a customer service rep making a snide comment to a customer. Senior Operations Manager McRee expressed that the surveys were at touchpoints. At the end of emails, there was usually a survey linked to the employee’s program area. Item 13 Attachment B - Policy and Services November 2023 Summary Minutes        Item 13: Staff Report Pg. 10  Packet Pg. 378 of 389  SUMMARY MINUTES Page 6 of 14 Policy & Services Meeting Summary Minutes: 11/14/2023 Director Lait added that the objective was to send a survey to the contractor to respond to in real time at the end of every action placed in the system by an inspector. There had been technology problems when that was executed, so it was challenging using the current system, and that process had to be aborted. They were trying to work through the technology challenges. Getting real-time feedback was the goal. There were QR codes at the DC. He was interested in exploring the kiosk idea. Everything was being done in coordination with the City Manager’s office related to communication strategies in terms of how to collect survey information. All surveys could be distilled into a single datapoint of overall customer service with a point system assigned. He did not think there was currently enough data to post. If it was posted, he thought it would be artificially higher than the sentiment. Once more data was collected, they would be happy to publish it online. Regarding customer service sometimes being adversarial, he did not want anybody who interacted with the department feeling they were not treated professionally and respectfully. He had spoken to staff about it, and it was a big part of customer service training recently. He knew there were examples where they had fallen short. He had recently received feedback, and he met with the individual and the supervisors, and they discussed what had happened. They were taking training and customer service very seriously. He was quick to respond to feedback. It was not okay for staff to feel they have authority beyond advancing the City’s regulations and processes. While making these changes and having some successes, staff recognized there was a fair amount of baggage that had to be navigated through. He declared that feedback was gold. If there were problem individuals who were consistently the source of a problem, he needed to know about it so he could follow up to ensure corrective action. He voiced that it was hard to hear of the possibilities of retaliation, but he was not surprised to hear it. He stated that he had been in the building and planning field for over 25 years, and in his earlier years, he had somewhat experienced seeing that happen. He did not think that was okay, and he knew George McRee and the inspection manager did not think it was okay. He remarked that a lot of the staff was guided by true government public service. To the extent that any staff member should take action, delay, or cause a bad situation, he wanted to know about it, and it would be addressed immediately. It was not acceptable. He did not know how to get folks to communicate with him if they were uncomfortable contacting to a supervisor in the Department. He was quick to respond to emails sent to pdsdirector@cityofpaloalto.org, which was a great way to reach out to him, and he could pursue an issue and provide anonymity to the claimant. He was responsible for ensuring that customer service was the best it could be. He discussed being understaffed and working conditions being difficult. Deputy City Manager Chantal Cotton-Gaines added that customer service was pinnacle for their work. If someone felt uncomfortable reaching out to Director Lait, her office was available, and they wanted to know if there were any issues especially causing fear. They wanted to be a conduit related to the Department. If City Council should hear about issues, she requested that information be shared ASAP because real-time information would help the Department address any issues. It was also important to validate positive situations where good customer service had been provided and to give feedback more real time on issues that may have gone a little awry. Item 13 Attachment B - Policy and Services November 2023 Summary Minutes        Item 13: Staff Report Pg. 11  Packet Pg. 379 of 389  SUMMARY MINUTES Page 7 of 14 Policy & Services Meeting Summary Minutes: 11/14/2023 Senior Operations Manager McRee proceeded with her presentation and commented that they continued to focus on recruitments. There was a vacancy for an assistant chief building official, which had been vacant since July 2022. She noted that recruitment had been very challenging because it was currently a very competitive market. They were developing internal dashboards for performance tracking, so managers would have visibility into all key areas of the permitting process. They were considering possible third-party applications that could be layered on top of the online permitting system, which could possibly make the user interface better or make the application process easier for customers. She supplied a slide showing the staff recommendation. Council Member Lauing queried if shifting to an in-house model from consulting was finding enough supply chain or if there were still vacancies. Senior Operations Manager McRee responded there were still vacancies. On the Development Services side, there were two vacancies for building inspectors. They had an offer out for one, which they hoped would close soon. There was a plan check engineer vacancy, and they were at the end of the recruitment process. She explained that they had seen the market shift and change over the last year. Recently they had been more successful in filling recruitments, especially with in-house staff, which was a little more reliable. They reached out very frequently for plan review services, and they were not able to dedicate FTE to the City. Next year, they would do an RFP for on-call services, and they hoped to expand the bench of consultants and have more options. Council Member Lauing asked if they had been rescoping for the critical number two spot. Director Lait explained that they wanted somebody to take on policy work. With the position not being filled, they were tackling the ability to look forward to some of the programs and priority projects the Council had advanced. He recently spoke to a recruiter about the position, and he was told the job title was wrong, so they have been discussing changing the title. They had also been considering advancing a midyear request. Council Member Veenker questioned if the hotline was appropriate for folks worried about reporting problems. She expressed that she had not received a disproportionate number of complaints about the Planning Department or of the process. She noted that permits needed to be issued as quickly and as appropriately as possible. She felt that technology and staffing would help. She indicated that customer service in this area was perhaps more high profile than in many of the City’s departments. She was encouraged by the report and the ongoing efforts. She respected the strategic plan being delayed in favor of addressing customer service, but she questioned why it would not start for another year. She commended staff on the audit and embracing the recommendations. City Attorney Molly Stump clarified that the hotline was focused on fraud, waste, and abuse, and general customer concerns would not fall within that. Something rising to the intentional misapplication of the law, etc., would be appropriate. Item 13 Attachment B - Policy and Services November 2023 Summary Minutes        Item 13: Staff Report Pg. 12  Packet Pg. 380 of 389  SUMMARY MINUTES Page 8 of 14 Policy & Services Meeting Summary Minutes: 11/14/2023 Director Lait expressed, related to strategic planning not starting for another year, that 17 recommendations on the audit was a significant amount of work to address, and decent progress had been made. He first wanted to focus on things that they knew needed to be addressed. He hoped after implementation of some of the systems and a little runtime that the effort could be made to define what the City’s role was in government, with customers, and to each other in the Department. He felt time was needed before engaging in the strategic plan. He estimated that strategic planning would start in about a year. Senior Operations Manager McRee added that they were continuing to make progress toward strategic planning. Public Comments There were no requests to speak. City Auditor Adriane McCoy was pleased to see the work done. She declared that they were available to assist the Department with the ongoing findings in progress and working toward the strategic plan. Through their follow-up activities over the next six months, they would be in conversation with Director Lait and his team members to a complete end. Chair Tanaka discussed incentives and measuring and reaching scores and thought there should be incentives for reaching and exceeding scores. He queried if there was a program to recognized those doing an excellent job, especially in customer service. He suggested there be public recognition, such as putting the person ’s name on a board, etc., and perhaps monetary benefits. In terms of customer service, he asked if there were goal metrics to get a percentage measurement or score by a certain date. Chief Building Official Hoyt remarked that when he recognized a staff member going above and beyond, he complimented them on their efforts. He voiced that he needed to make more time to write personal notes because he thought that would mean a lot. They had a lot of events and potlucks to try to celebrate certain occasions. Director Lait did not think there were metrics for goals, but it was not for a lack of consideration. He discussed the dashboard tracking progress in turning around applications, etc., and making proactive calls to respond to the customer service piece. He thought additional information was needed and systems needed to be in place before thinking about publicizing metrics. He was open to ideas to achieve that. He thought they were trying to approach it from different angles as opposed to a score on a satisfaction bar. Chair Tanaka thought it started with a measurement goal, then looking at [inaudible] scores, and then setting something reasonable and achievable for the organization , and everyone in the organization should know that a certain score was being targeted. It needed to be transparent and easy to understand. He asked what was keeping them from using a CRM system, which would provide coherency in engagement with customers. Item 13 Attachment B - Policy and Services November 2023 Summary Minutes        Item 13: Staff Report Pg. 13  Packet Pg. 381 of 389  SUMMARY MINUTES Page 9 of 14 Policy & Services Meeting Summary Minutes: 11/14/2023 Director Lait thought more consideration needed to be given to a CRM system. He remarked that sometimes notes were taken when there was interaction with customers through the Accela process, although it was hard to track that data when on a phone call or when with a customer. Sometimes information was presented in a different way, so a CRM program would be beneficial to the City. MOTION: Council Member Veenker moved, seconded by Council Member Lauing to recommend the City Council accept the status update of the Audit of the Building and Permit Review Report. Chair Tanaka inquired if there was anything that could be recommended to Council that might be helpful for the budget for a CRM system, a consultant, or a midterm hire, etc. Director Lait thanked Chair Tanaka for his support. He did not currently have any specific recommendations, but going through midyear and into next year’s budget, he anticipated that there may be some adjustments to staffing and some consultant budget enhancement requests. He had been reaching out to a consultant to understand a little more of the nuance related to the application intake process, so if he had someone from the outside go through the process, there may be some opportunities for refinement. Deputy City Manager Chantal Cotton-Gaines thought a budget request was beyond the current agenda item with it being a status report. She voiced that it was important to have the recommendation in the context of the larger budget conversation. [The Committee took a five-minute break] MOTION PASSED: 3-0 3. Discussion and Recommendation to the City Council Regarding the City Council Procedures and Protocols Handbook – Annual Discussion Deputy City Manager Chantal Cotton-Gaines noted that the item was a cursory review. It was pre-conversation for the Full Council on the annual review of the handbook. She stated that they planned to take the referrals that came from Council earlier in the year to the Full City Council on February 27, and they would report on all the actions taken thus far on the referrals, which was on censure, international travel, role of liaison for boards and commissions, etc. She asked that that be separated from this discussion. Each year, the Committee was to review the handbook and consider any necessary modifications. Staff offered a few items in the Staff Report, and they had also solicited the Full City Council for suggested updates to the handbook, and all the suggestions were included in the report. The current item was to organize the topics within the report and to think about the Full Council discussion on the annual handbook review. She noted that typically occurred at the City Council’s retreat in the January or February time frame, but in the last few years, there had usually not been time at the retreat, so it would happen a meeting or two after the retreat. She had a few categories to summarize the topics into, and she wanted to get the Committee’s acceptance that those were the categories and Item 13 Attachment B - Policy and Services November 2023 Summary Minutes        Item 13: Staff Report Pg. 14  Packet Pg. 382 of 389  SUMMARY MINUTES Page 10 of 14 Policy & Services Meeting Summary Minutes: 11/14/2023 the approval to put this on the Council agenda around February 2024. She had categorized the topics in thinking about the order of the agenda. Chair Tanaka asked that this be presented one at a time. Public Comments There were no requests to speak. Deputy City Manager Cotton-Gaines expressed that the staff recommendations were at the top of Packet Page 34, which she displayed on a slide, and included boundaries of receiving gifts from sister cities and other international communities that Palo Alto was in relationship with. Council Member Veenker asked if this applied to the City and City representatives receiving gifts. Assistant City Manager Cotton-Gains clarified that the intention was to be clear and establish a gift dollar limit that could be received by the City. She provided an example of the City receiving a gift of a high dollar value, and the gifts Palo Alto might provide not being of the same dollar value. It could apply to the City or individuals. Individual gifts were already legislated. This was more related to large gifts from another city to Palo Alto as an organization. It was not designed to address what may be given, only what may be received. Council Member Veenker mentioned that if felt odd to her that the City could give a large gift but not receive one. She was concerned about the inconsistency, and it felt as though Palo Alto was putting itself on a pedestal. Assistant City Manager Cotton-Gains indicated that on average the gifts Palo Alto gave were of lower dollar value than gifts received. Giving away the firetruck was an exception. It could apply to what may be received as well as what may be given. She noted that currently the decision to receive a gift was left to an individual, and this procedure would provide more structure. Chair Tanaka supported Council Member Veenker’s comments. He did not understand why this was needed because he thought all elected officials had an FPPC limit. He questioned how a hotel room would be a gift to the City versus an individual. City Attorney Molly Stump explained that this applied to gifts to the City, not to individuals. There was a specific FPPC rule on international travel. Assistant City Manager Cotton-Gains indicated there should be something in place saying hotel accommodations would not be accepted by international partners. Discussion ensued related to why this was needed, what was included in FPPC, and the City and individuals receiving gifts. Item 13 Attachment B - Policy and Services November 2023 Summary Minutes        Item 13: Staff Report Pg. 15  Packet Pg. 383 of 389  SUMMARY MINUTES Page 11 of 14 Policy & Services Meeting Summary Minutes: 11/14/2023 Council Member Veenker suggested that it be viewed as three entities – the City, an elected Council member subject to FPPC reporting, and staff/neighbor’s abroad/others on behalf the City. She thought there may be different rules. Assistant City Manager Cotton-Gains felt that was helpful feedback, and noted that it could be refined before presenting it to Council. Chair Tanaka did not think the City should make donations. Assistant City Manager Cotton-Gains remarked that there were not clear guidelines related to proclamations. Staff wanted to add clear instructions. Council Member Veenker thought there should be clear instructions. Council Member Lauing believed there should be guidelines with broad discretion and not too restrictive. Council Member Tanaka asked if this was a problem. Discussion ensued concerning the volume of proclamations increasing; the Mayor doing a recent proclamation on her own; when, where, and by whom proclamations should be; and staff having difficulty providing [inaudible]. Assistant City Manager Cotton-Gains noted that C on Packet Page 34 related to additional guidelines for ad hoc committees. Staff had provided some draft ad hoc committee guidelines in the packet. It would be brought forward for Council’s discussion. Ad hoc committees had been used more in recent history, so staff recommended the handbook provide clear expectations for them. Council Member Veenker supported Council discussing and providing clarity for ad hoc committee guidelines. She felt that the tone of the specifics as written appeared to be reprimands to Council members. She addressed 2d on Packet Page 34 and noted there should be an option for compromise. She did not see anything indicating what staff should do to make it work. She discussed the flexibility of ad hocs. She thought Council member limits should be set forth, but it felt like negatives as opposed to positives and/or compromise. Council Member Lauing agreed. He thought it was meant to be defensive of workload and normal process. He noted that they were not trying to circumvent staff opinion. He provided an example an ad hoc agreeing on the Director’s approach on an issue, although there could have been disagreement, which then Council could have made a decision from both perspectives. Council Member Veenker addressed Item 4 and inquired how a work plan could be created, adopted, etc., in the tenure of an ad hoc as ad hocs were generally short, temporary committees. Item 13 Attachment B - Policy and Services November 2023 Summary Minutes        Item 13: Staff Report Pg. 16  Packet Pg. 384 of 389  SUMMARY MINUTES Page 12 of 14 Policy & Services Meeting Summary Minutes: 11/14/2023 Assistant City Manager Cotton-Gains answered that a work plan could be perceived as larger than it actually was. It was to make clear what assignments the committee would do given the time they had. Council Member Lauing thought an ad hoc would have a specific objective, and he was not sure a work plan would be done. He was comfortable dropping Item 4. Assistant City Manager Cotton-Gains voiced that it would vary by topic. Some topics were very clear and others were to explore a topic and present something to Council. In the latter, it would be helpful to have a definition very early on. Chair Tanaka liked Council Member Veenker’s comments related to the tone of the item. It seemed like staff was relaying to Council they could not do X, Y, or Z. He discussed the importance of Council having the freedom to operate. He suggested that Council have discussions instead of publicized rules in the handbook. He did not think staff should tell Council how to operate. He thought items should be removed if items were added. It appeared to him that some of the items seemed to be micromanagement of Council by staff, which could provide limits to future Council members. He agreed with the perspectives previously voiced by Council members. He addressed the size of the handbook and suggested it be compressed. Council Member Lauing asked if it could be condensed before coming back. City Attorney Stump was sure it could be condensed, more user friendly, and positive. She clarified that this was more about the relationship between Council and ad hocs, not between ad hocs and staff. An ad hoc needed to stay tethered to the purpose and scope given by Council. Assistant City Manager Cotton-Gains would explore edits that could be made. She furnished a slide of the Supplemental Memo, which contained ideas received from City Council. Council Member Veenker summarized her suggestions related to remote participation. She detailed why she was less excited about moving away from video participation and thought it should be reconsidered. Public Comments There were no requests to speak. Chair Tanaka noted that he had had more participation by doing his office hours via Zoom, which he thought was helpful and useful. He discussed why it should be encouraged. Discussion ensued related to this meeting providing Council with a specific recommendation, and the Committee decided to provide feedback to Council without taking a vote. It was noted that the item may return to PSC. Item 13 Attachment B - Policy and Services November 2023 Summary Minutes        Item 13: Staff Report Pg. 17  Packet Pg. 385 of 389  SUMMARY MINUTES Page 13 of 14 Policy & Services Meeting Summary Minutes: 11/14/2023 Council Member Veenker voiced that her second suggestion in the Supplemental Memo related to the City adopting a formal land acknowledgement, which she supported and wanted to see it added to the agenda. She provided a definition of land acknowledgement. She noted that it could be determined when and how often it would be done. Assistant City Manager Cotton-Gains added that some organizations had chosen to do land acknowledgements at the start of events and meetings. The idea was to honor and acknowledge that the land had roots from people prior to [inaudible]. Chair Tanaka liked the idea, but he was concerned that could extend meeting times. Council Member Lauing discussed his recommendations in the Supplemental Memo related to a 30-minute limit for public comment and questioned if it should be strictly abided by or if there should be an exception clause, and he thought call-in public comment should be discussed. Council Member Veenker thought this should be included in the time management category, and she believed they were all worth discussing. She believed the rules should be stated publicly. Chair Tanaka felt rules should be followed. Assistant City Manager Cotton-Gains noted that the item contained two ideas – one enforcing the existing rule and the other suggesting a change to amend the rule. Chair Tanaka addressed the ideas in the Supplemental Memo from Council members not present at this meeting, and he suggested they speak to their ideas when they were in attendance at a future date. Council Member Veenker commented that she was glad Council Member Lythcott-Haims brought up her third item in the Supplemental Memo, which would be good to discuss, and she thought clarity should be provided as she felt there were miscommunications related to it Council Member Lauing added that Council Member Lythcott-Haims’ first item was also worth debate. Council Member Veenker supported discussing Council Member Lythcott-Haims’ first item. She was interested in Council Member Burt’s recommendation concerning a Committee making recommendations to Council for a Committee to discuss a specific topic instead of using a Colleagues’ Memo. She thought the proposed ad hoc rules indicated that was a possibility. Council Member Lauing did not think Council Member Burt was referring to ad hocs. Council Member Veenker thought it should be made clear that it related to standing or formal committees. Item 13 Attachment B - Policy and Services November 2023 Summary Minutes        Item 13: Staff Report Pg. 18  Packet Pg. 386 of 389  SUMMARY MINUTES Page 14 of 14 Policy & Services Meeting Summary Minutes: 11/14/2023 Chair Tanaka suggested the handbook be streamlined to reduce the number of pages, and asked staff to include that in the item. He thought something should be removed if anything else was added. Assistant City Manager Cotton-Gains remarked that there had been a few iterations of the handbook. The most comprehensive was the one Council did earlier in 2024, which started in Policy and Services. Future Meetings and Agendas Assistant City Manager Chantal Cotton-Gains declared there would be two back-to-back meetings in December, which included the legislative platform for the coming year, the auditor’s risk assessment and audit plan, and an audit on wastewater treatment. She noted there were about four audits. There was also the 2024 City Council priorities discussion and recommendations and referral, the last referral on procedures and protocols related to Council discretionary expenditures. There were about seven items that would be split between the two evenings. Council Member Veenker explained why she may not be in town for the meetings. She would confirm her schedule and let Assistant City Manager Cotton-Gains know for certain. Chair Tanaka requested there be another Doodle poll, if needed, to see if the meetings could be rescheduled. Assistant City Manager Cotton-Gains would work with the Clerk’s office to issue a Doodle poll if needed. She would also check with staff related to the items to determine which actually had to come before the Committee this year. She flagged that there was an informational item for the Committee to read on their own related to the Race and Equity update being done t his month. They continued to move forward Council’s recommendations and the initiatives. They had also hired an Equity and Inclusion Program Manager. Chair Tanaka asked the Committee for thoughts about how the next meeting should be streamed. Council Member Veenker thanked staff for the Equity and Inclusion Program manager hire. Adjournment: The meeting was adjourned at 9:38 P.M. Item 13 Attachment B - Policy and Services November 2023 Summary Minutes        Item 13: Staff Report Pg. 19  Packet Pg. 387 of 389  4 2 8 3 City Council Staff Report Report Type: ACTION ITEMS Lead Department: City Manager Meeting Date: March 18, 2024 Report #:2403-2776 TITLE Approval of the 2024 City Council Priority Objectives and Finance Committee and Policy & Services Committee Workplans (Item Continued from March 4, 2024 and March 11, 2024 City Council Meeting) On March 4, 2024 the Council Received Presentations and Public Testimony; the item was continued to March 11, 2024 for Council Deliberation and Action, and continued to March 18, 2024 – No Public Testimony Will be Heard on March 18, 2024. RECOMMENDATION This item is a continuation of Agenda Item #8 on the City Council March 4, 2024 agenda and Item #12 on the City Council March 11, 2024 agenda. Materials for this item can be found here: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13507 This time provides for continued discussion, as needed, of the Council 2024 priority objectives and Finance & Policy and Service Committee workplans for 2024. APPROVED BY: Ed Shikada Item AA1 Item AA1 Staff Report        Item AA1: Staff Report Pg. 1  Packet Pg. 388 of 389  City Council Staff Report Report Type: ACTION ITEMS Lead Department: City Manager Meeting Date: March 18, 2024 Report #:2403-2779 TITLE Policy and Services Recommendation to the City Council for the creation of a Citizens Advisory Committee on a Potential Charter Amendment on Council Member Compensation (Item Continued from March 11, 2024 City Council Meeting) RECOMMENDATION This item is a continuation of Item #13 on the City Council March 11, 2024 agenda. Materials for this item can be found here: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13513 APPROVED BY: Ed Shikada Item AA2 Item AA2 Staff Report        Item AA2: Staff Report Pg. 1  Packet Pg. 389 of 389