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HomeMy WebLinkAbout2024-05-06 City Council Agenda PacketCITY COUNCIL Regular Meeting Monday, May 06, 2024 CITY O F Council Chambers & Hybrid PALO 5:30 PM ALTO 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. May 06, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CALL TO ORDER SPECIAL ORDERS OF THE DAY (5:30 - 6:00 PM) 1. Interview Candidate for Vacancies on Utilities Advisory Commission. CEQA Status - Not a project. 2. Appointment of Candidates for Vacancies on the Architectural Review Board, Human Relations Commission, Planning and Transportation Commission, and Public Art Commission. CEQA Status - Not a project. 3. Proclamation of May 2024 as Affordable Housing Month AGENDA CHANGES, ADDITIONS AND DELETIONS PUBLIC COMMENT (6:00 - 6:30 PM) Members of the public may speak to any item NOT on the agenda. 1-3 minutes depending on # of speakers. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. COUNCIL MEMBER QUESTIONS. COMMENTS. ANNOUNCEMENTS (6:30 - 6:35 PM) Members of the public may not speak to the item(s). STUDY SESSION (Item 4: 6:35 - 7:20 PM, Item 5: 7:20 - 8:20 PM) 4. City Manager Transmittal of the Fiscal Year 2025 Proposed Operating and Capital Budgets 5. Bi-Annual Discussion with the Independent Police Auditor CONSENT CALENDAR (8:20 - 8:25 PM) Items will be voted in one motion unless removed from the calendar by three Council Members. 6. Approval of Minutes from April 15, 2024 and April 22, 2024 Meetings 7. Approval and Authorization for the City Manager to Execute Purchase Orders with Pre - Qualified Vendors for Electric Distribution Transformers for the Grid Modernization Project (EL -24000) in an Annual Amount up to $4,000,000 through FY 2026, and Increasing the Total Aggregate Not -to -Exceed Purchase Order Amount for FY 2022 through FY 2026 from $10,000,000 to $16,000,000, with all Purchases Subject to Assigned Purchase Order and Availability of Funds; CEQA Status: Exempt under CEQA May 06, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. Guidelines Sections 15302, 15303 and 15183. 8. Approval of Contracts with the City of Los Altos and Town of Los Altos Hills to Provide Regional Animal Care and Control Services; (CEQA status — not a project.) 9. Approval of General Service Agreement Contract Number C24189229 with Xerox in an Amount Not to Exceed $382,165 to Lease Printing Equipment for the Print Shop for a Period of Three Years; CEQA Status: Not a Project 10. Adoption of a Resolution to Extend the Interim Parklet Program to July 31, 2024; CEQA Status - Categorically Exempt (Sections 15301 and 15304(e)) 11. LEGISLATIVE: Adoption of an Ordinance Updating Chapter 18.15 (Density Bonus) of Title 18 (Zoning) to Reflect Recent Changes in State Density Bonus Law and Revising Regulations for Provision of On -Site Affordable Rental Units Under the City's Inclusionary Housing Ordinance; Recommended by the Planning and Transportation Commission March 13, 2024. CEQA Status: Exempt under CEQA Guidelines Section 15061(b)(3). 12. Policy & Services Committee Recommendation Regarding State and Federal Legislative and Budgetary Updates and Positions on Pending State Legislation 13. Adoption of a Resolution to Appoint Katherine Murdock of Baker Tilly US, LLP as City Auditor; CEQA status — Not a Project 14. Approval of Contract Amendment Number 6 to Contract C18171057 with AECOM to increase compensation by $297,206 for a new total not to exceed of $3,894,034 and Extend the Term for Six Months for Additional Studies, Outreach, and Support for Rail Grade Separation Projects along Caltrain Corridor; CEQA status — statutorily exempt under CEQA section 15262 (feasibility and planning study). CITY MANAGER COMMENTS (8:25 - 8:35 PM) BREAK (5-10 MINUTES) ACTION ITEMS (8:45 - 10:00 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 15. PUBLIC HEARING / QUASI-JUDICIAL. 800 San Antonio Road [23PLN-00010]: Recommendation on Applicant's Request for a Rezone from Service Commercial to Planned Community/Planned Home Zoning (PC/PHZ). The Project Includes Construction of 75 Residential Condominium Ownership Units Including 15 Below -Market Rate Units May 06, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. (20% of the Units) in a Five Story Building with Two Levels of Subterranean Parking. A Subdivision Map will be Required. An Addendum to the Previously Certified Environmental Impact Report for the Housing Incentive Program Expansion and 788 San Antonio Mixed Use Project (SCH # 2019090070) was Prepared. Zoning District: CS (Commercial Service). STUDY SESSION (10:00 - 11:00 PM) 16. Review Workforce Recruitment Strategic Plan and Recommendations for Improvements in the Recruitment Process ADJOURNMENT INFORMATION REPORTS Information reports are provided for informational purposes only to the Council and the public but are not listed for action during this meeting's agenda. 17. City of Palo Alto Utilities Residential Electric and Water Utility Customer Survey Results; CEQA status: not a project. 18. Update on the Deconstruction and Construction Materials Management Ordinance (Ordinance 5472, Palo Alto Municipal Code Title 5, Chapter 5.24); CEQA Status — Not a Project OTHER INFORMATION Standing Committee Meetings this week Finance Committee May 7, 2024 Finance Committee May 8, 2024 Public Comment Letters Schedule of Meetings May 06, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom -based meeting. Please read the following instructions carefully. o You may download the Zoom client or connect to the meeting in- browser. If using your browser, make sure you are using a current, up-to-date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. o You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. o When you wish to speak on an Agenda Item, click on "raise hand." The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. o When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 4. Spoken public comments 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. May 06, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. Item 1 Item 1 Staff Report City Council Staff Report Report Type: SPECIAL ORDERS OF THE DAY CITY O F Lead Department: City Clerk PALO LTO Meeting Date: May 6, 2024 Report #:2404-2914 TITLE Interview Candidate for Vacancies on Utilities Advisory Commission. CEQA Status - Not a project. BACKGROUND The City Council directed that 6 candidates for the Utilities Advisory Commission be scheduled for interviews. 5 candidates interviewed on April 30, 2024. Chris Tucher will be interviewed on May 6, 2024 due to a scheduling conflict. ATTACHMENTS: None. APPROVED BY: Mahealani Ah Yun, City Clerk Item 1: Staff Report Pg. 1 Packet Pg. 6 of 281 Item 2 Item 2 Staff Report City Council Staff Report Report Type: SPECIAL ORDERS OF THE DAY CITY O F Lead Department: City Clerk PALO ALTO Meeting Date: May 6, 2024 Report #:2404-2887 TITLE Appointment of Candidates for Vacancies on the Architectural Review Board, Human Relations Commission, Planning and Transportation Commission, and Public Art Commission. CEQA Status - Not a project. RECOMMENDATION Staff recommends City Council vote to appoint candidates for the following positions: • Two (2) vacancies on the Architectural Review Board with terms ending March 31, 2027 • Two (2) vacancies on the Human Relations Commission with terms ending March 31, 2027 • One (1) vacancy on the Planning and Transportation Commission with term ending March 31, 2028 • Four (4) vacancies on the Public Art Commission with two terms ending March 31, 2027 and two partial terms ending March 31, 2026 *A majority vote (4 yes's) is required to appoint a candidate. BACKGROUND Boards and Commissions are established as advisory bodies to the City Council, made up of community volunteers that provide essential feedback on matters of importance to the community. The City Clerk's office advertises and recruits for vacancies, the Council considers the applications, interviews desired candidates, and makes appointments for the open positions. INTERVIEWS At the April 1, 2024 City Council meeting, the Council elected to interview 2 candidates for Planning and Transportation Commission, 4 candidates for the Stormwater Management Oversight Committee, 5 candidates for the Architectural Review Board, 5 candidates for the Human Relations Commission, and 8 candidates for the Public Art Commission. The interviews were held on April 8, 2024 and April 30, 2024. Video recording of the interviews are available Item 2: Staff Report Pg. 1 Packet Pg. 7 of 281 Item 2 Item 2 Staff Report on our City of Palo Alto YouTube Channel'. All applications for the Planning and Transportation Commission2, Stormwater Management Oversight Committee3, Architectural Review Board4, Human Relations Commissions, and Public Art Commission' can be accessed online. MEMBERSHIP REQUIREMENTS Each Board or Commission has different requirements for appointment such as mandatory residency, specialized training, or professional service in a specified area. Additionally, appointed members cannot be council members, officers, or employees of the City of Palo Alto. Architectural Review Board • At least three members shall be architects, landscape architects, building designers or other design professionals. (PAMC 2.21.010). This requirement is currently fulfilled by all 5 members of the Architectural Review Board. Human Relation Commission • Palo Alto residency. (PAMC 2.22.010) Planning and Transportation Commission • Palo Alto residency. (PAMC 2.20.010) Public Art Commission • Each member of the Commission shall either be members of the Architectural Review Board or shall be professional visual artists, professional visual arts educators, professional visual arts scholars, or visual arts collectors whose authorities and skills are known and respected in the community and, whenever feasible, who have demonstrated an interest in, and have participated in, the arts program of the city. (PAMC 2.18.020) PUBLIC OUTREACH The 2024 Annual Boards and Commissions recruitment invited applications from January 1, 2024 through March 17, 2024 through the new online application process. Palo Alto Municipal Code 2.16.060 requires public notification regarding vacancies of the Commissions as follows, 1 City of Palo Alto YouTube Channel: https://www.youtube.com/c/cityofpaloaIto 2 Planning and Transportation Commission applications: https://cityofpaIoaIto.primegov.com/Portal/viewer?id=0&type=7&uid=47a8c2a7-4a8d-4def-8222-b510fccfc966 3 Stormwater Management Oversight Committee applications: https://cityofpa loa Ito. pri megov.com/Ports l/viewe r?id=0&type=7&u id=d79f6864-7531-4cb6-a b61-662a97bdf957 4 Architectural Review Board applications: https://cityofpaloaIto.primegov.com/Portal/viewer?id=0&type=7&uid=f8d5a94c-6be9-4174-9aee-dea7f869d225 5 Human Relations Commission applications: https://cityofpaloaIto.primegov.com/Portal/viewer?id=0&type=7&uid=afbc2869-beaf-4ac2-becd-fb05c613e79c Item 2: Staff Report Pg. 2 Packet Pg. 8 of 281 Item 2 Item 2 Staff Report "The City Clerk shall exercise their discretion in choosing the method of advertisement that will most effectively reach potential candidates." Based on the September 14, 2021 Policy & Services Committee meeting report regarding Board and Commission Member demographics and community representation, the City Clerk's office expanded recruitment efforts through additional means to "most effectively reach potential candidates". This recruitment was advertised through various methods including paid print and digital advisements in The Palo Alto Weekly and the Daily Post; via the City's website and social media channels; in physical locations of the Palo Alto Libraries and Community Centers; and distributed by e-mail through established distribution lists to community based organizations, individuals and City subscription based notification lists. ATTACHMENTS: None. APPROVED BY: Mahealani Ah Yun, City Clerk Public Art Commission: https://cityofpaloaIto.primegov.com/Portal/viewer?id=0&type=7&uid=c0aa38a6-aged-4d01-98f3-a90b0b917833 Item 2: Staff Report Pg. 3 Packet Pg. 9 of 281 Item 3 Item 3 Staff Report City Council Staff Report From: City Manager CITY O F Report Type: SPECIAL ORDERS OF THE DAY PALO Lead Department: Planning and Development Services ALTO Meeting Date: May 6, 2024 Report #:2403-2741 TITLE Proclamation of May 2024 as Affordable Housing Month RECOMMENDATION Staff recommend that the City Council proclaim the month of May as Affordable Housing Month in the City of Palo Alto. BACKGROUND Affordable Housing Month is a national observance in the United States that is typically held in the month of May each year. The event was established to raise awareness about the need for affordable housing and to recognize the important role that affordable housing plays in building strong, sustainable, and inclusive communities. ATTACHMENTS Attachment A: Affordable Housing Month Proclamation APPROVED BY: Jonathan Lait, Planning and Development Services Director Item 3: Staff Report Pg. 1 Packet Pg. 10 of 281 Item 3 ment A - Afforda Housing Month OF=PAU Proclamation U Q j lr k ��LIFpR� ��b Gi AFFORDABLE HOUSING MONTH WHEREAS, safe and affordable housing is a basic human right and yet, each year, thousands of Silicon Valley families and individuals struggle to find an affordable home in this expensive housing market; and WHEREAS, the City Council adopted the 6t11 Cycle Housing Element that outlines how 6,086 new housing units can be accommodated within Palo Alto by 2031, and includes implementation programs to increase the number affordable housing units; and WHEREAS, the City actively pursues state and federal grant funds for affordable housing development, preservation, and rehabilitation, and WHEREAS, the City remains active in supporting affordable housing development and commits financial assistance for projects that include much needed lower -income units; and WHEREAS, the City established a local limit on rental security deposits in Palo Alto to one and a half times (1.5x) the monthly rent for unfurnished units, which is lower than the limit in current state law; and WHEREAS, the City supports families who live in Affordable Housing Communities in Palo Alto with grant funding for afterschool homework clubs, summer enrichment programs and family reading nights, WHEREAS, the City has applied State permanent local housing allocation monies toward supporting new affordable housing at Matadero Creek and supports the retention of affordable housing at Buena Vista Mobile Home Park; and WHEREAS, the City has implemented meaningful actions to help those experiencing homelessness in Palo Alto through making permanent its safe parking ordinance, piloting an outreach worker program, piloting an overnight warming location, and providing funding and partnering to build an interim housing shelter on City -owned land; and WHEREAS, many organizations throughout Silicon Valley are dedicated to providing safe, stable permanent and affordable housing to all members of the community; these organizations along with local agencies and community members have organized Affordable Housing Month; and NOW, THEREFORE I, Greer Stone, Mayor of the City of Palo Alto, on behalf of the entire City Council, do hereby proclaim the month of May as Affordable Housing Month in the City of Palo Alto, to call upon our community to support affordable housing solutions and to recognize the successful efforts of the City of Palo Alto and its partners who seek to improve access to affordable housing in Palo Alto. Presented: May 6, 2024 Greer Stone Mayor O O Item 3: Staff Report Pg. 2 Packet Pg. 11 of 281 Item 4 Item 4 Staff Report City Council Staff Report Report Type: STUDY SESSION CITY O F Lead Department: Administrative Services PALO LTO Meeting Date: May 6, 2024 Report #:2404-2958 TITLE City Manager Transmittal of the Fiscal Year 2025 Proposed Operating and Capital Budgets BACKGROUND This report will be a special late packet release. APPROVED BY: Lauren Lai, Administrative Services Director Item 4: Staff Report Pg. 1 Packet Pg. 12 of 281 Item 5 Item 5 Staff Report CITY OF PALO ALTO TITLE Bi-Annual Discussion with the Independent Police Auditor City Council Staff Report From: City Manager Report Type: STUDY SESSION Lead Department: City Manager Meeting Date: May 6, 2024 Report #:2403-2748 RECOMMENDATION This Study Session is a semiannual opportunity for Council discussion with the Independent Police Auditor. There is no recommended action. BACKGROUND AND ANALYSIS This is the study session with the City's Independent Police Auditor (IPA) from the representatives of the OIR Group, the City's contracted consultant for the Independent Police Auditor function. It is the second of two discussions in this fiscal year. The previous discussion took place with the City Council on October 16, 2023.1 Purpose: In the amended contract with the OIR group, it states the following related to the IPA meetings with the City Council: Beginning in the second half of 2021, CONSULTANT shall meet with the City Council two times per year to discuss trends in criminal justice and policing, policy and training matters, recommendations made by CONSULTANT, and other Council concerns. CONSULTANT'S conferences with Council are not for the purpose of elaborating on published reviews of specific incidents and shall not include discussion of personnel matters prohibited by law. Semi-annual conferences shall be scheduled after publication of the CONSULTANT'S report, according to availability of Council and the CONSULTANT. 1 October 16, 2023 City Council Meeting: https://cityofpaloaIto.primegov.com/Portal/Meeting?meetingTemplate Id=13038 (Item 3 is the study session) Item 5: Staff Report Pg. 1 Packet Pg. 13 of 281 Item 5 Item 5 Staff Report Consistent with the description above, Council discussion with the IPA is not focused on the most recent report from OIR. However, for ease in reference, the most recent report was issued as an Informational Report in the April 22, 2024 City Council packet.2 FISCAL/RESOURCE IMPACT No additional funds are needed for this study session. STAKEHOLDER ENGAGEMENT The discussion with the City Council is an opportunity for the public to also share feedback related to issues covered by the IPA. APPROVED BY: Ed Shikada, City Manager z April 22, 2024 City Council Meeting: https://cityofpaloaIto.primegov.com/Portal/Meeting?meetingTemplate Id=14970 (Informational Report item #14) Item 5: Staff Report Pg. 2 Packet Pg. 14 of 281 Item 6 Item 6 Staff Report City Council Staff Report Report Type: CONSENT CALENDAR CITY O F Lead Department: City Clerk PALO a LTO Meeting Date: May 6, 2024 Report #:2404-2907 TITLE Approval of Minutes from April 15, 2024 and April 22, 2024 Meetings RECOMMENDATION That the minutes be reviewed and approved. ATTACHMENTS Attachment A: April 15, 2024 Draft Action Minutes Attachment B: April 22, 2024 Draft Action Minutes APPROVED BY: Mahealani Ah Yun Item 6: Staff Report Pg. 1 Packet Pg. 15 of 281 Item 6 Attachement A - April 15, 2024 Draft Action CITY COUNCIL Minutes CITY Or PALO DRAFT ACTION MINUTES ALTO Special Meeting April 15, 2024 The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:30 P.M. Present In Person: Burt, Kou, Lauing, Lythcott-Haims, Stone, Tanaka Present Remotely: Veenker Absent: ecial Orders of the Da 1. Proclamation Honoring National Animal Control Officer Appreciation Week - April 14-20, 2024 NO ACTION 2. Proclamation Honoring National Public Safety Telecommunicators' Week - April 15-19, 2024 NO ACTION Council Member Veenker Joined City Council Meeting by teleconference at 5:57 P.M. Consent Calendar Council Member Tanaka registered a no vote on Agenda Item Number 6, 8. MOTION: Council Member Lythcott-Haims moved, seconded by Council Member Kou to approve Agenda Item Numbers 3-12. MOTION PASSED ITEMS 3-5, 7, 9-12: 7-0 MOTION PASSED ITEMS 6, 8: 6-1, Tanaka no 3. Approval of Minutes from the March 18, 2024 and March 25, 2024 Meetings. Page 1 of 4 Item 6: Staff Report Pg. 2 Packet Pg. 16 of 281 Item 6 Attachement A - April 15, DRAFT ACTION M I N UT 2024 Draft Action Minutes 4. Approve the Reliability and Resiliency Strategic Plan as Recommended by the Utilities Advisory Commission; CEQA Status: exempt, not a project 5. Approval of Construction Contract C24190225 with Graham Contractors, Inc. in an Amount Not -to -Exceed $1,594,195 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that may Develop During the Project Up to a Not -to -Exceed Amount of $159,420 for the Fiscal Year 2024 Streets Preventive Maintenance Project, Capital Improvement Program Projects PE -86070, and PO -11001; CEQA status —exempt under CEQA Guidelines Section 15301(c) 6. Staff Recommends Increasing the Budget for the Advanced Heat Pump Water Heater Pilot Program by $846,000 to Increase Participation with Higher Rebates, and Amend the Fiscal Year Budget Appropriation for the Gas Fund; CEQA Status: Not a Project under CEQA Guidelines Section 15378(b)(5) 7. Approval of Contract No. C24189918 with BKF Engineers, through December 31 2025, in an Amount Not to Exceed $109,583, for Professional Design and Engineering Services for the Foothills Nature Preserve Improvements Project (PE -21000); CEQA Status — Exempt under CEQA Guidelines Section 15301 8. Approval of a Blanket Purchase Order With Eaton (Cooper Power Systems, LLC) for the Purchase of Pad Mounted Electric Equipment for the Utility's Electric Distribution System Not to Exceed $750,000 per Year, for a Total Not -To -Exceed Amount of $5,250,000 for 7 Years; CEQA Status — Exempt Under CEQA Guidelines Section 15301 9. Approval of Professional Services Contract Number C24189405 with Tetra Tech, Inc. in an amount not to exceed $300,000 for On -Call Emergency Management Support Services for a Period of Six Years; CEQA Status — Not a Project. 10. Approval of Contract Amendment Number 2 to Seven On -call Consulting Contracts to Increase in the Amount by $500,000 to a Total Not to Exceed to $3.5 Million and Extend Term by Three Months to Provide Expertise for Long Range Planning Projects, Application Processing, Environmental Review, and Other Planning Analysis in the Planning and Development Services Department. 11. Approval of: (1) Contract No. 4524000393 with StarChase, LLC for GPS Vehicle Tracking Implementation for a three-year term in an amount not to exceed $224,657; and (2) StarChase GPS Vehicle Tracking Technology Surveillance Use Policy; CEQA status — categorically exempt. 12. Authorization to Execute Amendment to Legal Services Contract S24189355 with Allen, Glaessner, Hazelwood & Werth to Increase Amount by $50,000 for Total Not -to -Exceed Amount of $135,000; CEQA Status — Not a Project. Page 2 of 4 Sp. City Council Meeting Draft Action Minutes: 04/15/2024 Item 6: Staff Report Pg. 3 Packet Pg. 17 of 281 Item 6 Attachement A - April 15, DRAFT ACTION MI N UT 2024 Draft Action Minutes BREAK (5-10 MINUTES) / CONVENE CITY COUNCIL and PLANNING & TRANSPORTATION MEETING The City Council and Planning and Transportation Commission of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 6:46 P.M. PTC Commissioners Present In Person: Summa, Hechtman, Reckdahl, Templeton, Lu, Akin PTC Commissioners Present Remotely: Chang Artinn ItPmc 13. Joint City Council and Planning and Transportation Commission Meeting to Adopt a Resolution Amending the Comprehensive Plan by Adopting a Revised 2023-31 Housing Element. California Environmental Quality Act (CEQA): The City Council adopted a Revised Addendum to the Comprehensive Plan Final Environmental Impact Report on December 18, 2023 that, in conjunction with the Comprehensive Plan Final EIR, fully analyzes the impacts associated with adoption of the Revised 2023-2031 Housing Element. Planning and Transportation Commission MOTION: Commissioner Akin moved, seconded by Commissioner Templeton to recommend City Council adopt the Revised 2023-31 Housing Element. MOTION PASSED: 7-0 Council Member Veenker recused on Stanford University related properties/programs and First Congregational Church portions of the Item. City Council MOTION: Vice Mayor Lauing moved, seconded by Council Member Lythcott-Haims to adopt a Resolution (Attachment B) making the findings required under CEQA and Housing Element Law, and adopt the Revised 2023-31 Housing Element as an amendment to the City's Comprehensive Plan, and direct staff to: 1. Add new program to align with Council's direction to extend the Housing Focus Area along El Camino Real; and, 2. Reexamine the existing housing conditions East of Bay Shore subsequent to the submittal of the Housing Element and make any adjustments accordingly. MOTION PASSED: 6-1, Kou no Item 6: Staff Report Pg. 4 Page 3 of 4 Sp. City Council Meeting Draft Action Minutes: 04/15/2024 Packet Pg. 18 of 281 Item 6 Attachement A - April 15, DRAFT ACTION M I N UT 2024 Draft Action Minutes Adjournment: The meeting was adjourned at 9:30 P.M. ATTEST: City Clerk APPROVED: 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 6: Staff Report Pg. 5 Page 4 of 4 Sp. City Council Meeting Draft Action Minutes: 04/15/2024 Packet Pg. 19 of 281 Item 6 Attachement B - April 22, 2024 Draft Action CITY COUNCIL Minutes CITY Or PALO DRAFT ACTION MINUTES ALTO Special Meeting April 22, 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, Lythcott-Haims, Stone, Tanaka, Veenker Present Remotely: Absent: Lauing ecial Orders of the Da 1. Recognizing Youth Living in Palo Alto or Enrolled at PAUSD Who Have Received The President's Volunteer Service Award (PVSA) As Certified by Youth Community Service (YCS) This Academic Year Between July 1, 2023 — Feb 15, 2024. NO ACTION Closed Session 2. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his Designees Pursuant to Merit System Rules and Regulations (Ed Shikada, Kiely Nose, Sandra Blanch, Nick Raisch, Tori Post, Molly Stump, and Jennifer Fine) Employee Organization: Service Employees International Union, (SEIU) Local 521, Utilities Management and Professional Association of Palo Alto (UMPAPA), Palo Alto Peace Officers' Association (PAPOA), Palo Alto Police Management Association (PMA), International Association of Fire Fighters (IAFF) local 1319, Palo Alto Fire Chiefs' Association (FCA); Authority: Government Code Section 54957.6 (a) MOTION: Council Member Burt moved, seconded by Council Member Veenker to go into Closed Session. MOTION PASSED: 6-0-1, Lauing absent Page 1 of 4 Item 6: Staff Report Pg. 6 Packet Pg. 20 of 281 Item 6 Attachement B - April 22, DRAFT ACTION MI N UT 2024 Draft Action Minutes Council went into Closed Session at 5:50 P.M. Council returned from Closed Session at 6:45 P.M. Mayor Stone announced no reportable action. Study Session 3. Race and Equity Update: Assessment Report from Ivy Planning Group on City Workplace Culture and 2024-2025 (Calendar Years) Equity Action Plan NO ACTION Consent Calendar Council Member Tanaka registered a no vote on Agenda Item Number 6. Council Member Kou registered a no vote on Agenda Item Number 10. Council Member Burt registered a no vote on Agenda Item Number 10. Council Member Kou and Council Member Burt requested to Pull Agenda Item Number 10. MOTION: Council Member Lythcott-Haims moved, seconded by Mayor Stone to approve Agenda Item Numbers 4-10. MOTION PASSED ITEMS 4-5, 7-9: 6-0-1, Lauing absent MOTION PASSED ITEM 6: 5-1-1, Tanaka no, Lauing absent MOTION PASSED ITEM 10: 4-2-1, Kou no, Burt no, Lauing absent 4. Approval of Minutes from April 1, 2024, and April 8, 2024 Meetings 5. CONSENT: 261 Hamilton Ave: Upgrade Historic Inventory from Category 3 to Category 1 6. Adopt a Resolution Authorizing the City Manager or Their Designee to Execute an Amendment to the Power Purchase Agreement with Ameresco Half Moon Bay LLC for the Purchase of up to 60,000 Megawatt -Hours per Year of Biogas Energy Over a Term of up to 20 Years for a Total Not to Exceed Amount of $147.2 Million; CEQA Status: Not a Project under CEQA Guidelines Section 15378(a) 7. Approval of Construction Contract Number C24190641A with Valhalla Builders, Inc. in the Amount of $460,900 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that Page 2 of 4 Sp. City Council Meeting Draft Action Minutes: 04/22/2024 Item 6: Staff Report Pg. 7 Packet Pg. 21 of 281 Item 6 Attachement B - April 22, DRAFT ACTION M I N UT 2024 Draft Action Minutes may Develop During the Project up to a Not -to- Exceed Amount of $46,090 for the Performing Arts Venues Seat Replacement Project at Lucie Stern Community Theatre, Capital Improvement Program Project AC -18000; CEQA Status — Exempt Under CEQA Guidelines Section 15301 8. Approval of Professional Services Contract No. C24190042 With BKF Engineers in a Total Not -to -Exceed Amount for $283,250 for Land Surveying Services for One Year; CEQA — Not a Project. 9. Approval of a Five -Year Technical Assistance Agreement with the United States Geological Survey in an Amount Not -to -Exceed $924,745 for Scientific Monitoring Services at the Regional Water Quality Control Plant Outfall and Horizontal Levee Pilot Project Site (WQ- 22001); CEQA Status- Categorically Exempt Section 15306 10. QUASI-JUDICIAL. 739 Sutter Avenue [22PLN-00201 and 24PLN-00005]: Appeal of the Director's Decision to Approve a Streamlined Housing Development Review Application to Allow Deconstruction of An Existing 8 Unit Residential Rental Development and Construction of 12 Three -Bedroom Condominium Units. The Project Also Includes a Request for Approval of a Vesting Tentative Map for a Condominium Subdivision. Zoning District: RM-20. Environmental Assessment: Exempt from the California Environmental Quality Act per CEQA Guidelines Section 15332. For more information contact the Project Planner at HYPERLINK "mailto:Claire.Raybould@Cityofpaloalto.org" \h Claire.Raybould@Cityofpaloalto.org. Action Items 11. Review and provide input on Concept Plans for Quarry Road Transit Connection to the Palo Alto Transit Center and Adoption of a Resolution of Intention to Undedicate a portion of El Camino Park; CEQA status - statutorily exempt per Pub. Res. Code § 21080(b)(12). MOTION: Council Member Burt moved, seconded by Council Member Lythcott-Haims to adopt a Resolution of Intention to Undedicate a portion of El Camino Park that is necessary for the new transit connection (Attachment E). MOTION PASSED: 5-1-1, Kou no, Lauing absent 12. Addition of 16 properties to the City's Historic Resources Inventory based on Owner interest. CEQA Status: Pursuant to Public Resources Code Section 21065, the Historic Designation of Properties is not a Project Subject to Environmental Review. MOTION: Council Member Burt moved, seconded by Council Member Veenker to: Page 3 of 4 Sp. City Council Meeting Draft Action Minutes: 04/22/2024 Item 6: Staff Report Pg. 8 Packet Pg. 22 of 281 Item 6 Attachement B - April 22, DRAFT ACTION M I N UT 2024 Draft Action Minutes 1. Adopt the attached record of land use action (Attachment A) to add 16 properties meeting specified criteria to the City's Historic Resources Inventory, based on expressed owner interest; and, 2. Direct staff to continue outreach to eligible property owners among the properties discussed in this report and to place future additions to the Historic Resources Inventory with expressed owner interest on the Consent Calendar; and, 3. Direct staff to study the possibility of a process for removing the properties as shown as potentially eligible in the parcel reports and return to Council with evaluations on any alternatives. MOTION PASSED: 6-0-1, Lauing absent Adjournment: The meeting was adjourned at 11:22 P.M. ATTEST: City Clerk APPROVED: 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 6: Staff Report Pg. 9 Page 4 of 4 Sp. City Council Meeting Draft Action Minutes: 04/22/2024 Packet Pg. 23 of 281 Item 7 Item 7 Staff Report CITY OF PALO ALTO City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Utilities Meeting Date: May 6, 2024 Staff Report: 2403-2755 TITLE Approval and Authorization for the City Manager to Execute Purchase Orders with Pre -Qualified Vendors for Electric Distribution Transformers for the Grid Modernization Project (EL -24000) in an Annual Amount up to $4,000,000 through FY 2026, and Increasing the Total Aggregate Not - to -Exceed Purchase Order Amount for FY 2022 through FY 2026 from $10,000,000 to $16,000,000, with all Purchases Subject to Assigned Purchase Order and Availability of Funds; CEQA Status: Exempt under CEQA Guidelines Sections 15302, 15303 and 15183. RECOMMENDATION Staff recommends that Council: 1. Approve and authorize the City Manager or their designee to execute purchase orders from prequalified vendors for the purchase of electric distribution transformers, as recommended by the Utilities Department, for the Grid Modernization Project (EL - 24000), for a total of $4,000,000 annually, and 2. Increase the total aggregate not -to -exceed purchase order amount from $10,000,000 to $16,000,000 over the five-year period for prequalified vendors; specifically increasing the total collective not -to -exceed amount from $6,000,000 to $12,000,000 for the remaining three years. EXECUTIVE SUMMARY The Utilities Department is recommending an increase to the authorized spending amount for the purchase of electric distribution transformers from $2,000,000 to $4,000,000 per fiscal year with any of the prequalified vendors, increasing the total not -to -exceed amount from $10,000,000 to $16,000,000 over the remaining three-year pre -qualified vendor period from FY 2024 through FY 2026. Due to supply chain shortage and extended lead times, the FY 2022 authorization enabled the City to ramp up and meet the anticipated volume of transformers needed for the City's electric infrastructure from FY 2022 through FY 2026. As supply chain shortages persists, the updated recommendation enables the City to place orders in advance for a significantly higher number of transformers that need to replaced as part of Council's Grid Modernization for Electrification Item 7: Staff Report Pg. 1 Packet Pg. 24 of 281 Item 7 Item 7 Staff Report initiative. Funds for this project are included in the FY 2024 Adopted 5 -year Capital Improvement Plan. BACKGROUND The Utilities Department uses various types of electric distribution transformers (pole top, pad mount, and submersible) to provide electric service to customers in Palo Alto. In order to qualify to become a City supplier, manufacturers who supply transformers to the City must comply with the City's transformer specifications and industry standards. Staff issues a Request for Qualifications (RFQ) nearly every five years to prequalify transformer suppliers as per City of Palo Alto's Policies and Procedures 1 — 44/ASD, "Prequalification of Contractors." This ordering process ensures that City of Palo Alto receives competitive pricing without compromising product quality, and maintains the ability to continue providing reliable service to customers. In November 2015, Council approved and authorized the City Manager to execute purchase orders for electric distribution transformers up to $1,000,000 each year for five years'. Any unspent funds are returned to the Electric Fund reserves at the end of each fiscal year. In June 2022, Council approved and authorized the City Manager to execute purchase orders for electric distribution transformers with prequalified vendors (Staff Report ID 143422 up to $2,000,000 annually between FY 2022- FY 2026, in a Total Not -to Exceed Amount of $10,000,000 over the 5 year period. At that time, staff needed to address a reduction of existing transformer stock inventory resulting from an increase in service upgrades. It was anticipated that the need to purchase more transformers would increase in the upcoming years as a result of new initiatives, projects, and replacement of existing transformers. In June 2023, Council's FY 2024 Capital Budget included funds for the Grid Modernization for Electrification Project ("Grid Mod Project", EL -24000) to enhance grid resiliency and reliability of the electric distribution system and to accelerate the City's clean energy and decarbonization goals. This project involves replacing the existing 1,400 single phase pole top transformers rated less than 50kVA with a rating of 50kVA or larger to meet the new load forecast for electrification. ANALYSIS The City conducted an electrification study to evaluate the impacts of projected electrification loads on Palo Alto's distribution and substation transformers, primary/secondary distribution circuits, and to propose upgrades needed to mitigate overloads. The Grid Mod Project requires bringing online more transformers, replacing deteriorating wires and connectors, upgrading or replacing poles, and providing battery storage and solar system support to the interconnected 1 City Council, November 30, 2015, https://www.citVofpaloalto.org/files/assets/public/v/1/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2015/final-staff-report-id-6244 transformer-supplier- pregualification-process-and-authorization.pdf 2 City Council, June 22, 2022: https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=81904 Item 7: Staff Report Pg. 2 Packet Pg. 25 of 281 Item 7 Item 7 Staff Report grid. Specifically, the Project involves replacing the current 1,413 single phase pole top transformers rated less than 50kVA. Additionally, 300 - 400 pad mount and underground transformers will need to be replaced or added with 75kVA or larger to mitigate overloads. Current manufacturer delivery lead times are approximately 8 months to 24 months, depending on the transformer type. Considering the number of transformers needed for Grid Mod and lead times, an estimated additional 200-300 transformers will need to be purchased each year. As staff ramps up to meet the needs of new electric initiatives and projects in addition to existing transformer replacements, having a secure supply of transformers is vital to ensure continuity in electric services. This agreement provides the City with the authorization to purchase transformers as needed with prequalified vendors to avoid supply chain shortages, low inventory, and lead time issues. If the authorization level is not increased, then the City may not be able to purchase the volume of transformers needed at the time of need, resulting in potential project delays, service disruptions, and increased expenses associated with inventory shortages. Per the requirements of City of Palo Alto's Policies and Procedures 1— 44/ASD, "Prequalification of Contractors," the Utilities Department solicited a Request for Qualifications (RFQ) for the prequalification of transformer suppliers in December 2021. Staff sent the solicitation to over 400 vendors. The City's prequalification process includes an evaluation of the following criteria: (a) ability to meet technical specifications, (b) ability to deliver materials on time, (c) equipment reliability and quality, (d) manufacturing history, and (e) references from other utilities. As part of its review process, staff identifies any exceptions to the City's technical specifications and determines whether those are acceptable, and also determines whether the City's other key criteria are met. If so, the supplier is deemed qualified. If not, then the supplier is deemed not qualified to supply that particular type of transformer. Suppliers can request to become qualified at a later time and will be evaluated by the same criteria. FY 2022 - FY 2024 Prequalified Suppliers by Transformer Type Hitachi Energy USA Power Partners, Inc. Howard Industries, Inc. SETI Sunbelt Emerald Transformers Padmount YES NO YES YES NO YES Underground Residential NO NO YES NO NO YES Underground Commercial YES NO YES NO NO YES Pole Top NO YES YES YES YES YES When staff determines that transformers are needed, staff issues a Request for Quotation to the prequalified manufacturers for each particular transformer type. Staff places orders with manufacturers based on CIP requirements, new customer connections, and to replace old or failed transformers. Engineering staff reviews and evaluates all quotes, and issues a purchase order to the vendor offering the lowest price. Item 7: Staff Report Pg. 3 Packet Pg. 26 of 281 Item 7 Item 7 Staff Report FISCAL/RESOURCE IMPACT Funding for the additional $2 million increase in the spending authorization level is available in the FY 2024 Adopted Capital Budget within the Electric Fund project EL -24000 Grid Modernization for Electrification. Unspent funds will be returned to the Electric Fund reserves annually. Funding for subsequent years is subject to City Council approval of the annual appropriation of funds through the annual budget process STAKEHOLDER ENGAGEMENT This agreement to increase the authorization amount of an existing agreement for materials does not directly impact customers that would require community outreach. Staff most recently received Council approval and authorization for electric distribution transformer purchase orders in June 20, 20222. ENVIRONMENTAL REVIEW The grid modernization project will replace aging infrastructure and install modern network infrastructure to meet future needs related to home electrification. This project does not expand the existing footprint of the City's network; there is sufficient capacity on the existing sub - transmission lines, substations, and primary feeders to serve the energy load that is being added to the system. Changes to the equipment on the network will include replacement and installation of pad -mounted transformers and new protective devices to improve reliability, and system controls to allow for the import and export of energy from homes on the network. This project is categorically exempt from California Environmental Quality Act (CEQA) review under CEQA Guidelines section 15303 (construction and location of limited numbers of new, small facilities or structures; installation of small new equipment and facilities in small structures) and section 15302 (replacement or reconstruction of existing structures and facilities). In addition, Council's approval of the grid modernization project does not require additional environmental review under CEQA Guidelines section 15183, because the grid modernization project, an element of the Council -approved S/CAP, is consistent with the Environmental Impact Report (EIR) Addendum to the City of Palo Alto Comprehensive Plan Final Environmental Impact Report Council approved on June 5, 20233. ATTACHMENTS: None APPROVED BY: Dean Batchelor, Director of Utilities Staff: Dave Yuan, Strategic Business Manager 3Environmental Impact Report https://cityofpaloaIto.primegov.com/Portal/Meeting?meetingTemplateld=12530 Item 7: Staff Report Pg. 4 Packet Pg. 27 of 281 Item 8 Item 8 Staff Report CITY OF PALO ALTO City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Community Services Meeting Date: May 6, 2024 Report #:2403-2827 TITLE Approval of Contracts with the City of Los Altos and Town of Los Altos Hills to Provide Regional Animal Care and Control Services; (CEQA status — not a project.) RECOMMENDATION Staff recommends the City Council approve and authorize the City Manager to execute regional animal care and control services contracts with the City of Los Altos and Town of Los Altos Hills for a period of five years effective July 1, 2024 through June 30, 2029. BACKGROUND The City of Palo Alto (City) provides animal care and control services to the City of Los Altos and the Town of Los Altos Hills. The existing regional animal care and control contracts with Los Altos and Los Altos Hills were originally signed in 2004 and extended for two additional five-year terms. The current contracts expire on June 30, 2024. Since 2019, animal care and shelter services are provided by Pets in Need through a contract with the City. Animal control services are provided directly by the Palo Alto Police Department. Historically, the compensation associated with the contracts has been based on an annual percentage of animals handled by Palo Alto for each partner agency. Under this cost structure, Los Altos is responsible for 11.3% and Los Altos Hills is responsible for 4% of animal care and animal control costs. This percentage was derived from an average percentage of animals handled by Palo Alto over a ten-year period and Palo Alto's total costs for animal control and shelter services. Los Altos has been responsible for $148,000 and Los Altos Hills has been responsible for $51,000 annually, based on the average of the previous three fiscal years. ANALYSIS Agreements with Los Altos and Los Altos Hills will terminate on June 30, 2024 and have been re- evaluated for scope and cost of services. The new agreements (Attachments A and B) reflect a similar scope to the current agreement with an adjusted compensation model. To provide assurance to all parties that the partner agencies are paying for animals handled in their jurisdictions only, the agreement will shift from an average percentage -based model to actual Item 8: Staff Report Pg. 1 Packet Pg. 28 of 281 Item 8 Item 8 Staff Report program costs (animal care and animal control). The actual program costs will be derived from the number of animals handled in each jurisdiction as compared to all animals handled each fiscal year. Prior to Pets in Need (PIN) operating the Animal Shelter, the City was responsible for licensing of animals and remitted the associated revenue from licenses from Los Altos and Los Altos Hills animals back to those agencies. With the City taking back the function of animal licensing, which was done by PIN during the five-year term (2019-2024) of the contract with PIN and the City, revenue from licenses issued in Los Altos and Los Altos Hills will be remitted back to those agencies. FISCAL/RESOURCE IMPACT The City Council approved a new five-year agreement with Pets in Need on March 18, 2024, to provide animal care and sheltering services to the City of Palo Alto, Los Altos and Los Altos Hills at the Palo Alto Animal Shelter. The new agreement with PIN represents increased costs to the City to operate the shelter. In Fiscal Year 2025, the cost to operate the shelter will be $1.4 million and animal control costs are estimated to be $715,000, for a total estimated cost of $2.1 million. This increase in costs also translates to higher costs for Los Altos and Los Altos Hills. The provision of animal care and control services to Los Altos and Los Altos Hills is expected to result in annual revenue of $416,000 in FY 2025. This is derived from the anticipated revenue from both agencies less licensing revenue remitted back to each agency. Expected costs to Los Altos and Los Altos Hills in Fiscal Year 2025 are $326,000 and $154,000, respectively. Expected revenue from licensing that will go back to Los Altos and Los Altos Hills is $46,000 and $18,000, respectively. The FY 2025 Proposed Operating Budget includes $218,000 in revenue from both cities. The net impact will be an increase of $198,000 in revenue from both cities, after factoring in the returned licensing revenue. Staff will bring forward budget adjustments to the FY25 Proposed Budget during the Amendments to Proposed phase. Animal control services provided to Los Altos and Los Altos Hills are accomplished with existing staff resources and no additional staff is allocated to specifically serve Los Altos and Los Altos Hills. STAKEHOLDER ENGAGEMENT Staff from the Palo Alto Police Department and Community Services Department worked with representatives from Los Altos and Los Altos Hills on the development of the agreements. Following City Council approval, staff from both partner agencies will recommend approval to their respective Councils. ENVIRONMENTAL REVIEW Council action on this item is exempt from CEQA review under section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the activity in question may have a significant effort on the environment. Item 8: Staff Report Pg. 2 Packet Pg. 29 of 281 Item 8 Item 8 Staff Report ATTACHMENTS Attachment A: Contract between City of Palo Alto and City of Los Altos for Animal Care and Control Services. Attachment B: Contract between City of Palo Alto and Town of Los Altos Hills for Animal Care and Control Services. APPROVED BY: Kristen O'Kane, Community Services Director Item 8: Staff Report Pg. 3 Packet Pg. 30 of 281 Item 8 AGREEMENT FOR ANIMAL CONTROL AND SHELTERING Attachment A - Contract BETWEEN THE CITY OF PALO ALTO AND between City of Palo Alto THE CITY OF LOS ALTOS and City of Los Altos for Animal Care and Control Services This Agreement for Animal Control and Sheltering Services is made this 1st day of July, 2024, by and between the City of Palo Alto ("Palo Alto") and the City of Los Altos ("Agency"). RECITALS WHEREAS, animal control and sheltering services are required by California law to be provided by incorporated cities; and WHEREAS, Palo Alto has an established animal control and shelter operation Palo Alto Animal Control (or "PAAC"); and WHEREAS, Agency has no current facilities or ability to provide those required animal services, and has requested that Palo Alto provide specified animal control and sheltering services, and animal licensing within the jurisdiction of Agency, and for the citizens of Agency; and WHEREAS, Palo Alto has the capacity to provide such services to Agency as are hereinafter described, and is willing to do so; WHEREAS, Palo Alto has engaged Pets In Need, a local non-profit animal services group ("PIN"), to operate the animal shelter; and NOW, THEREFORE, in consideration of the following covenants, terms, and conditions, the parties agree: SECTION 1: Term The term of this agreement shall commence on July 1, 2024 and shall terminate on June 30, 2029, unless sooner terminated or extended by mutual agreement between Palo Alto and the Agency. The parties intend to extend this agreement so long as it is mutually advantageous. Parties agree to meet at least twelve months prior to the scheduled termination hereof and discuss the terms of such extension. The parties intend to extend this agreement so long as it is mutually advantageous. Parties agree to meet at least twelve months prior to the scheduled termination hereof and discuss the terms of such extension. A. Amendments - Amendments to this Agreement must be in writing and approved by the governing body of Agency and Palo Alto. This is the entire Agreement between the parties and supersedes any prior written or oral agreements. Item 8: Staff Report Pg. 4 Packet Pg. 31 of 281 Item 8 Attachment A - Contract SECTION 2: Termination by Any between City of Palo Alto and City of Los Altos for If either party fails to perform any duties or obligations imposed by this Animal Care and Control id failure continues for sixty (60) days after written notification by the oth Services breaching party may terminate this Agreement immediately after the sixty (60) day period by providing written notice of termination. Either party may terminate this agreement at any time without cause by providing one hundred eighty (180) days written notice of intent to terminate. In any event of termination under this paragraph, Palo Alto shall be paid for all services performed until the date of such termination. SECTION 3: Advisory Committee The joint committee shall hereafter be referred to as the Animal Control Task Force (ACTF) consisting of the City Manager of Palo Alto or his designee, the City Manager of Agency or his/her designee, the Superintendent of PAAC, and the City Manager or his/her designee of other cities that contract with Palo Alto to provide animal control and/or sheltering services. The responsibilities of the ACTF shall include but are not limited to: 1. Review existing local animal control ordinances and make recommendations for appropriate changes 2. Assessing licensing program 3. Analyze programmatic complaints by either party or its residents 4. Review revenues and expenditures relating to the program SECTION 4: Agency Responsibilities 1. Agency hereby designates Palo Alto to perform, on behalf of Agency, all services as agreed to in Exhibit "A" - Scope of Services of this Agreement. 2. Agency hereby designates Palo Alto responsible for its dog license fee collection, including the issuance of administrative citations for municipal code violations. City will remit all license fees to Agency. 3. Agency agrees not to adopt fees inconsistent with Palo Alto's schedule for animal related fees during the term of the agreement. 4. Agency shall implement its own locally enacted provisions for administrative remedies with respect to impoundment, nuisance abatement of dangerous animals and other similar circumstances; provided, however, that Palo Alto will assist and respond when requested by Agency, as set forth in Exhibit "A" of this Agreement. 5. Agency agrees that it will remain responsible for arranging and conducting hearings under its Dangerous Animal Ordinances, including but not limited to, providing Hearing Officers and a location for such hearings. Alternatively, Agency may request Palo Alto to provide Hearing Officers and a location for such hearings, and Palo Alto may provide as such upon mutual agreement and resource availability. The cost of these hearings shall be borne by the animal owner; however, in the event Agency is unable to collect these costs from the animal owner; Agency shall be responsible for these costs. Item 8: Staff Report Pg. 5 Packet Pg. 32 of 281 Item 8 Attachment A - Contract between City of Palo Alto 6. Agency agrees that it shall remain solely responsible for the def and City of Los Altos for of any decision rendered by the Hearing Officer or from any Court judd Animal Care and Control ims, actions or appeals resulting from Dangerous Animal designation Services ncy's Ordinances. 7. Agency agrees to honor any dangerous animal designation issued by another partner agency and enforce its laws accordingly. 8. Agency agrees to provide assistance upon request of Palo Alto's Animal Control Officers within Agency's jurisdiction. 9. Agency shall be primarily responsible for the investigation and appropriate enforcement action to be taken in substantiated cases of animal cruelty, abuse, etc., under Section 597.1 of the California Penal Code. 10. Agency reports shall include description of the animal, location it was found, reporting party information and any other relevant information that would assist Palo Alto's Animal Control Officers with the disposition of the animal. The report shall be provided to Palo Alto's Animal Control Officers staff at pick up. If the animal is released from Agency, the report shall be sent to Palo Alto's Animal Control Officers by the end of the work day. 11. As unanticipated events occur in Agency cities, PAAC may be required to contract with outside vendors to provide services that are above and beyond the scope of services and/or the capabilities of PAAC personnel. After consultation and agreement of services with Agency, Agency will be responsible for the cost of vendor services. SECTION 5: Compensation 1. The purpose of this Section is to equitably divide the actual costs of providing animal control and sheltering services to Agency. The costs to provide these services are based on the actual program costs for the Palo Alto Animal Shelter and Animal Control Services Division each fiscal year. 2. Agency agrees to pay Palo Alto under the following payment schedule: a. August 1 — Palo Alto will provide Agency with cost for previous fiscal year. Payments are due to Palo Alto by September 15 of each year. Payments shall be sent to: Director of Community Services 1305 Middlefield Road Palo Alto, CA 94301 3. Agency agrees to pay its percentage of actual program costs for the Palo Alto Animal Shelter and Animal Control Services Divisions each fiscal year. The City of Palo Alto will provide the Agency with the actual percentage to be invoiced for the previous fiscal year (July 1St - June 30th) by August 1st of each year. Agency's payment for service is based on 1) Agency's proportionate use of shelter services over the period listed above and 2) Palo Alto's total costs for animal control and 2 Item 8: Staff Report Pg. 6 Packet Pg. 33 of 281 Item 8 Attachment A - Contract shelter services. The annual cost to the Agency is anticipated to I between City of Palo Alto Iscal Year 2025 based on 15.5% of total costs (Fiscal Year 2023 actuL and City of Los Altos for cted to exceed $400,000 in any year. Animal Care and Control Services J 4. PIN will retain all boarding and impound fees. Palo Alto will retain impound fees (in some situations), quarantine, penalty, and miscellaneous fees. Any payments not received on or before the due date shall accrue interest between the due date and date of receipt. Interest shall be based on the prevailing rate of return earned by Palo Alto's investments during that period. 6. In the event of early termination of this Agreement, in accordance with Section 2 of the Agreement, Palo Alto shall bill Agency a proportional amount of the quarterly payment that covers the quarter during which such termination is effective. 7. Any unforeseen changes in State requirements relating to the care and housing of animals shall be the fiscal responsibility of Agency once implemented by Palo Alto based on Agency's animals handled. SECTION 6: Indemnification and Hold Harmless Agency expressly agrees to indemnify and hold harmless Palo Alto, its officers, agents, employees and servants from all demands, claims, liabilities, losses, charges, costs, or damages caused by or arising out of Agency's negligent or willful misconduct in the performance of this Agreement. Palo Alto expressly agrees to indemnify and hold harmless Agency, its officers, agents, employees and servants from all demands, claims, liabilities, losses, charges, costs, or damages caused by or arising out of Palo Alto's negligent or willful misconduct in the performance of this Agreement. SECTION 7: Notices All notices shall be submitted, in writing, and sent by the United States Mail, certified and postage prepaid, by private express delivery service, by facsimile transmission followed by delivery of hard copy, or by any other process mutually acceptable to the parties to the addresses stated below or to any other address noticed in writing. Palo Alto: City of Palo Alto Director of Community Services 1305 Middlefield Road Palo Alto, CA 94301 Agency: City of Los Altos Police Chief 1 North San Antonio Road Los Altos, CA 94022 Item 8: Staff Report Pg. 7 Packet Pg. 34 of 281 SECTION 8: Miscellaneous Item 8 Attachment A - Contract between City of Palo Alto and City of Los Altos for Animal Care and Control This Agreement shall be governed by and construed in accordance Services State of California. Any changes resulting in Program modifications shall e provided in writing by Palo Alto to Agency and must be agreed upon and accepted by Agency as soon as legislative bodies enact any new or modified regulations regarding animals, their care and housing. 2. Palo Alto shall not be deemed in default on account of any delay or failure to perform any obligations in accordance with Agency laws, the laws of the State of California, the Palo Alto Municipal Code, and the terms of this Agreement, which directly results from an Act of God, including, without limitation, the act of a superior legal authority or an occurrence of nature. 3. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement shall remain in effect. 4. The prevailing party in any action brought to enforce the terms of this Agreement may recover from the other party its reasonable costs and attorneys' fees expended in connection with such an action. IN WITNESS WHEREOF, the parties have executed this Agreement in Palo Alto, County of Santa Clara, California, on the date first above stated. CITY OF PALO ALTO City Manager ATTEST: APPROVED AS TO FORM: Deputy City Attorney CITY OF LOS ALTOS City Manager ATTEST: APPROVED AS TO FORM: City Attorney ATTACHMENT: EXHIBIT "A" SCOPE OF SERVICES 4 Item 8: Staff Report Pg. 8 Packet Pg. 35 of 281 EXHIBIT "A" Scope of Services Item 8 Attachment A - Contract between City of Palo Alto and City of Los Altos for Animal Care and Control Services Palo Alto shall provide animal control and sheltering services to Agency as set forth in this Exhibit and in compliance with all related applicable laws of the State of California. Field Services will be provided seven (7) days a week as follows: Field Services: 9 hours per day Shelter Services: PIN's business hours shall be a minimum of six (6) days per week and forty (40) hours per week. PIN shall post the public hours on its website, and inform Palo Alto and Contract Cities in writing of any change in hours. Shelter shall be closed on designated holidays. SECTION 1: Agency Assist Palo Alto Animal Control Officer (ACO) while on his/her regular duty shift will: • Respond to reports of dangerous, aggressive, vicious, and/or attacking animals (domestic or wild). • Rescue animals in immediate distress. • Assist Agency staff in the active investigation of animal cruelty, abuse, or neglect incidents. Agency will be responsible for all criminal filings. • Investigate reports of animal on animal attacks. • Assist Agency by investigating all excess number of animal and leash law complaints. If Agency takes enforcement action surrounding an animal violation, Agency may request assistance of ACO to impound animal(s) and provide appropriate care at PAAC during the administrative process. Agency designates ACO as "Animal Control Officer" as defined in Los Altos Municipal Code Title 5, "Animals" Chapter 5.04 ("Chapter 1"). ACO will serve as primary enforcement of Chapter 5 during Regular Hours and will respond according to availability and severity of the incident. Agency will provide enforcement during other times. SECTION 2: Field Impound • ACO will impound animals under special custody situations in accordance with PAAC' s Protective Custody Policy, which would include owner arrest, hospitalization, fire, etc. Agency staff will provide PAAC staff with owner information before the end of Agency staff shift if known to Agency staff. Item 8: Staff Report Pg. 9 Packet Pg. 36 of 281 Item 8 Attachment A - Contract between City of Palo Alto and City of Los Altos for Animal Care and Control • Confined, stray domestic animals (including those in rented PAAC Services humane traps) shall be picked up during regular hours from both citizens an the Agency. SECTION 3: Stray Animals • ACO will respond to reports of, and impound at large or confined, stray animals during regular hours when the owner is not present. • ACO will pick up and dispose of reported dead stray animals during regular hours. • Residents from Agency's jurisdiction may bring stray animals to PIN during regular business hours. After hours, animals may be taken to the holding area at Palo Alto Police Department. The following day, ACO will pick up and transport to the shelter for care and housing. • Stray animals located in Agency's jurisdiction that are taken to the shelter shall be provided care and housing. A lost and found log will be maintained at shelter in an attempt to reunite animals with owners. SECTION 4: Disposition of Stray or Surrendered Animals • At the conclusion of any required holding period, stray or surrendered animals may either be placed for adoption or humanely euthanized at PAAC's or PIN's discretion. All animals placed for adoption shall be spayed or neutered, micro -chipped and vaccinated prior to placement. SECTION 5: Surrenders • Residents from Agency's jurisdiction may surrender their animal(s) during regular business hours at PIN without an appointment. Residents must provide proof of residency and picture identification at the time of the surrender. PAAC provides disposal service for owned, dead animals for a service fee. If owner requests animal to be picked up from their home, there will be an additional fee charged to the animal owner. This service is provided during regular business hours at PAAC and pursuant to the City of Palo Alto' s Municipal Fee Schedule SECTION 6: Bites/Quarantine • ACO will investigate all animal bite to human incidents, and quarantine or rabies test Item 8: Staff Report Pg. 10 Packet Pg. 37 of 281 Item 8 Attachment A - Contract between City of Palo Alto and City of Los Altos for the biting animal when required When a dog on human bite occurs Animal Care and Control hours or is in progress, ACO will respond and direct the quarantine Services California Health and Safety Code 121575 et seq. ACO will provide a report documenting the quarantine, witness statements and the action of the animal. PAAC will provide the report to the Agency upon request. Agency will be responsible for all criminal filings. For after hour incidents that are not in progress, the Agency will take an initial report and provide PAAC with a copy of the report by the end of the shift. PAAC shall provide for the control of rabies through quarantine and testing consistent with the provisions of California Health and Safety Code 121575 et seq. PAAC shall be responsible for filing the Annual report of Local Rabies Control Activities and Statement of Enforcement with the California State Department of Health Services. Animal bite on human incidents reported by medical personnel will be accepted and documented by an ACO. PAAC will notify Agency of relevant jurisdiction of the incident for evaluation of criminal filing. PIN shall provide one "actual" at cost rabies vaccination clinic in accordance with State law. SECTION 7: Animal Licensing • PAAC shall issue and maintain a dog licensing program for Agency including issuing Administrative Citations for licensing violations. • Dog licenses will be processed at PAAC, by mail, and/or online. PAAC and PIN shall provide the licensing applications to residents. • PAAC will mail reminder notices prior to the expiration of the dog license. • Microchip implantation and information will be available at PIN for a fee and a database will be maintained. SECTION 8: Veterinary Care • Veterinary care for sick or injured stray animals will be provided. • The City of Palo Alto shall oversee all animal health, hygiene, and nutritional needs of the animals under the care of PIN. SECTION 9: Wildlife Item 8: Staff Report Pg. 11 Packet Pg. 38 of 281 Item 8 Attachment A - Contract between City of Palo Alto and City of Los Altos for • ACO will respond to and assess reports of sick, injured, or orphan Animal Care and Control impound is necessary, PAAC may euthanize or request PIN arran Services transport to the nearest wildlife rehab center. • Nuisance wildlife calls will be referred to Santa Clara County Vector Control or to a private pest control company. No service provided by ACOs. • ACO will assess and may respond to complaints of wildlife presenting a threat to human safety and take appropriate action. Agency will assist upon request from ACO. • ACO will pick up dead wildlife on public streets/land weighing up to 50 pounds. For animals over 50 pounds, PAAC may contact a designated rendering company for removal. Removal of dead wildlife on private property should be referred to the designated rendering company and associated costs will be the responsibility of the resident Item 8: Staff Report Pg. 12 Packet Pg. 39 of 281 Item 8 AGREEMENT FOR ANIMAL CONTROL AND SHELTERING Attachment B - Contract BETWEEN THE CITY OF PALO ALTO AND between City of Palo Alto THE TOWN OF LOS ALTOS HILLS I and Town of Los Altos Hills for Animal Care and Control Services. This Agreement for Animal Control and Sheltering Services is made this l st day of July, 2024, by and between the City of Palo Alto ("Palo Alto") and the Town of Los Altos Hills ("Agency"). RECITALS WHEREAS, animal control and sheltering services are required by California law to be provided by incorporated cities; and WHEREAS, Palo Alto has an established animal control and shelter operation Palo Alto Animal Control (or "PAAC"); and WHEREAS, Agency has no current facilities or ability to provide those required animal services, and has requested that Palo Alto provide specified animal control and sheltering services, and animal licensing within the jurisdiction of Agency, and for the citizens of Agency; and WHEREAS, Palo Alto has the capacity to provide such services to Agency as are hereinafter described, and is willing to do so; WHEREAS, Palo Alto has engaged Pets In Need, a local non-profit animal services group ("PIN"), to operate the animal shelter; and NOW, THEREFORE, in consideration of the following covenants, terms, and conditions, the parties agree: SECTION 1: Term The term of this agreement shall commence on July 1, 2024 and shall terminate on June 30, 2029, unless sooner terminated or extended by mutual agreement between Palo Alto and the Agency. The parties intend to extend this agreement for a second additional five-year term consistent with the original contract signed by the parties in 2004. The parties intend to extend this agreement so long as it is mutually advantageous. Parties agree to meet at least twelve months prior to the scheduled termination hereof and discuss the terms of such extension. A. Amendments - Amendments to this Agreement must be in writing and approved by the governing body of Agency and Palo Alto. This is the entire Agreement between the parties and supersedes any prior written or oral agreements. Item 8: Staff Report Pg. 13 Packet Pg. 40 of 281 Item 8 Attachment B - Contract SECTION 2: Termination by Any Party between City of Palo Alto and Town of Los Altos If either party fails to perform any duties or obligations imposed by this Hills for Animal Care and id failure continues for sixty (60) days after written notification by the oth Control Services. breaching party may terminate this Agreement immediately after the sixty (60) day period by providing written notice of termination. Either party may terminate this agreement at any time without cause by providing one hundred eighty (180) days written notice of intent to terminate. In any event of termination under this paragraph, Palo Alto shall be paid for all services performed until the date of such termination. SECTION 3: Advisory Committee The joint committee shall hereafter be referred to as the Animal Control Task Force (ACTF) consisting of the City Manager of Palo Alto or his/her designee, the City Manager of Agency or his/her designee, the Supervising Animal Control Officer of PAAC, and the City Manager or his/her designee of other cities that contract with Palo Alto to provide animal control and/or sheltering services. The responsibilities of the ACTF shall include but are not limited to: 1. Review existing local animal control ordinances and make recommendations for appropriate changes 2. Assessing licensing program 3. Analyze programmatic complaints by either party or its residents 4. Review revenues and expenditures relating to the program SECTION 4: Agency Responsibilities 1. Agency hereby designates Palo Alto to perform, on behalf of Agency, all services as agreed to in Exhibit "A" - Scope of Services of this Agreement. 2. Agency hereby designates Palo Alto responsible for its dog license fee collection, including the issuance of administrative citations for municipal code violations. City will remit license fees to Agency. 3. Agency agrees not to adopt fees inconsistent with Palo Alto's schedule for animal related fees during the term of the agreement. 4. Agency shall implement its own locally enacted provisions for administrative remedies with respect to impoundment, nuisance abatement of dangerous animals and other similar circumstances; provided, however, that Palo Alto will assist and respond when requested by Agency, as set forth in Exhibit "A" of this Agreement. 5. Agency agrees that it will remain responsible for arranging and conducting hearings under its Dangerous Animal Ordinances, including but not limited to, providing Hearing Officers and a location for such hearings. Alternatively, Agency may request Palo Alto to provide Hearing Officers and a location for such hearings, and Palo Alto may provide as such upon mutual agreement and resource availability. The cost of these hearings shall be borne by the animal owner; however, in the event Agency is unable to collect these costs from the animal owner; Agency shall be responsible for these costs. Item 8: Staff Report Pg. 14 Packet Pg. 41 of 281 Item 8 Attachment B - Contract between City of Palo Alto 6. Agency agrees that it shall remain solely responsible for the def and Town of Los Altos of any decision rendered by the Hearing Officer or from any Court judd Hills for Animal Care and ims, actions or appeals resulting from Dangerous Animal designation Control Services. ncy's Ordinances. 7. Agency agrees to honor any dangerous animal designation issued by another partner agency and enforce its laws accordingly. 8. Agency agrees to provide assistance upon request of Palo Alto's Animal Control Officers within Agency's jurisdiction. 9. Agency shall be primarily responsible for the investigation and appropriate enforcement action to be taken in substantiated cases of animal cruelty, abuse, etc., under Section 597.1 of the California Penal Code. 10. Agency reports shall include description of the animal, location it was found, reporting party information and any other relevant information that would assist Palo Alto's Animal Control Officers with the disposition of the animal. The report shall be provided to Palo Alto's Animal Control Officers staff at pick up. If the animal is released from Agency, the report shall be sent to Palo Alto's Animal Control Officers by the end of the workday. 11. As unanticipated events occur in Agency cities, PAAC may be required to contract with outside vendors to provide services that are above and beyond the scope of services and/or the capabilities of PAAC personnel. After consultation and agreement of services with Agency, Agency will be responsible for the cost of vendor services. SECTION 5: Compensation 1. The purpose of this Section is to equitably divide the actual costs of providing animal control and sheltering services to Agency. The costs to provide these services are based on the actual program costs for the Palo Alto Animal Shelter and Animal Control Division each fiscal year. 2. Agency agrees to pay Palo Alto under the following payment schedule: a. August 1— Palo Alto will provide Agency with cost for previous fiscal year. Payments are due to Palo Alto by September 15, of each year. Payments shall be sent to: Director of Community Services 1305 Middlefield Road Palo Alto, CA 94301 Agency agrees to pay its percentage of actual program cost for the Palo Alto Animal Shelter and Animal Control Services Divisions each fiscal year. The City of Palo Alto will provide the Town with the actual percentage to be invoiced for the previous fiscal year (July 1st - June 3 0th) by August 1st of each year. Agency's payment for service is based on 1) Agency's proportionate use of shelter services 2 Item 8: Staff Report Pg. 15 Packet Pg. 42 of 281 Item 8 Attachment B - Contract over the period listed above and 2) Palo Alto's total costs for ani between City of Palo Alto elter services. and Town of Los Altos Hills for Animal Care and 4. PIN will retain all boarding and impound fees. Palo Alto will retL Control Services. )in some situations), quarantine, dog licensing, penalty, and miscellaneous fees. 5. Any payments not received on or before the due date shall accrue interest between the due date and date of receipt. Interest shall be based on the prevailing rate of return earned by Palo Alto's investments during that period. 6. In the event of early termination of this Agreement, in accordance with Section 2 of the Agreement, Palo Alto shall bill Agency a proportional amount of the quarterly payment that covers the quarter during which such termination is effective. 7. Any unforeseen changes in State requirements relating to the care and housing of animals shall be the fiscal responsibility of Agency once implemented by Palo Alto based on Agency's animals handled. SECTION 6: Indemnification and Hold Harmless Agency expressly agrees to indemnify and hold harmless Palo Alto, its officers, agents, employees and servants from all demands, claims, liabilities, losses, charges, costs, or damages caused by or arising out of Agency's negligent or willful misconduct in the performance of this Agreement. Palo Alto expressly agrees to indemnify and hold harmless Agency, its officers, agents, employees and servants from all demands, claims, liabilities, losses, charges, costs, or damages caused by or arising out of Palo Alto's negligent or willful misconduct in the performance of this Agreement. SECTION 7: Notices All notices shall be submitted, in writing, and sent by the United States Mail, certified and postage prepaid, by private express delivery service, by facsimile transmission followed by delivery of hard copy, or by any other process mutually acceptable to the parties to the addresses stated below or to any other address noticed in writing. Palo Alto: City of Palo Alto Director of Community Services 1305 Middlefield Road Palo Alto, CA 94301 Agency: Town of Los Altos Hills 26379 Fremont Rd. Los Altos Hills, CA 94022 SECTION 8: Miscellaneous Item 8: Staff Report Pg. 16 Packet Pg. 43 of 281 Item 8 Attachment B - Contract 1. This Agreement shall be governed by and construed in accordance between City of Palo Alto State of California. Any changes resulting in Program modifications and Town of Los Altos in writing by Palo Alto to Agency and must be agreed upon and accep Hills for Animal Care and oc as legislative bodies enact any new or modified regulations regardin Control Services. re and housing. 2. Palo Alto shall not be deemed in default on account of any delay or failure to perform any obligations in accordance with Agency laws, the laws of the State of California, the Palo Alto Municipal Code, and the terms of this Agreement, which directly results from an Act of God, including, without limitation, the act of a superior legal authority or an occurrence of nature. 3. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement shall remain in effect. 4. The prevailing party in any action brought to enforce the terms of this Agreement may recover from the other party its reasonable costs and attorneys' fees expended in connection with such an action. IN WITNESS WHEREOF, the parties have executed this Agreement in Palo Alto, County of Santa Clara, California, on the date first above stated. CITY OF PALO ALTO City Manager ATTEST: APPROVED AS TO FORM: Deputy City Attorney TOWN OF LOS ALTOS HILLS Town Manager ATTEST: APPROVED AS TO FORM: City Attorney ATTACHMENT: EXHIBIT "A" SCOPE OF SERVICES 4 Item 8: Staff Report Pg. 17 Packet Pg. 44 of 281 EXHIBIT "A" Scope of Services Item 8 Attachment B - Contract between City of Palo Alto and Town of Los Altos Hills for Animal Care and Control Services. J Palo Alto shall provide animal control and sheltering services to Agency as set forth in this Exhibit and in compliance with all related applicable laws of the State of California. Field Services will be provided seven (7) days a week as follows: Field Services: 9 hours per day Shelter Services: PIN's business hours shall be a minimum of six (6) days per week and forty (40) hours per week. PIN shall post the public hours on its website, and inform Palo Alto and Contract Cities in writing of any change in hours. Shelter shall be closed on designated holidays. SECTION 1: Agency Assist Palo Alto Animal Control Officer (ACO) while on his/her regular duty shift will: • Respond to reports of dangerous, aggressive, vicious, and/or attacking animals (domestic or wild). • Rescue animals in immediate distress. • Assist Agency staff in the active investigation of animal cruelty, abuse, or neglect incidents. Agency will be responsible for all criminal filings. • Investigate reports of animal on animal attacks. • Assist Agency by investigating all excess number of animal and leash law complaints. If Agency takes enforcement action surrounding an animal violation, Agency may request assistance of ACO to impound animal(s) and provide appropriate care at PAAC during the administrative process. Agency designates ACO as "Animal Control Officer" as defined in Los Altos Hills Municipal Code Title 6, Chapter 1 "Animals" ("Chapter 1"). ACO will serve as primary enforcement of Chapter 1 during Regular Hours and will respond according to availability and severity of the incident. Agency will provide enforcement during other times. SECTION 2: Field Impound ACO will impound animals under special custody situations in accordance with PAAC' s Protective Custody Policy, which would include owner arrest, hospitalization, fire, etc. Agency staff will provide PAAC staff with owner information before the end of Agency staff shift if known to Agency staff. Item 8: Staff Report Pg. 18 Packet Pg. 45 of 281 Item 8 Attachment B - Contract between City of Palo Alto and Town of Los Altos Hills for Animal Care and Confined, stray domestic animals (including those in rented PAAC Control Services. humane traps) shall be picked up during regular hours from both citizens the Agency. SECTION 3: Stray Animals • ACO will respond to reports of, and impound at large or confined, stray animals during regular hours when the owner is not present. • ACO will pick up and dispose of reported dead stray animals during regular hours. • Residents from Agency's jurisdiction may bring stray animals to PIN during regular business hours. After hours, animals may be taken to the holding area at Palo Alto Police Department. The following day, ACO will pick up and transport to the shelter for care and housing. • Stray animals located in Agency's jurisdiction that are taken to the shelter shall be provided care and housing. A lost and found log will be maintained at shelter in an attempt to reunite animals with owners. SECTION 4: Disposition of Stray or Surrendered Animals • At the conclusion of any required holding period, stray or surrendered animals may either be placed for adoption or humanely euthanized at PAAC's or PIN's discretion. All animals placed for adoption shall be spayed or neutered, micro -chipped and vaccinated prior to placement. SECTION 5: Surrenders Residents from Agency's jurisdiction may surrender their animal(s) during regular business hours at PIN without an appointment. Residents must provide proof of residency and picture identification at the time of the surrender. PAAC provides disposal service for owned, dead animals for a service fee. If owner requests animal to be picked up from their home, there will be an additional fee charged to the animal owner. This service is provided during regular business hours at PAAC and pursuant to the City of Palo Alto' s Municipal Fee Schedule SECTION 6: Bites/Quarantine Item 8: Staff Report Pg. 19 Packet Pg. 46 of 281 Item 8 Attachment B - Contract between City of Palo Alto and Town of Los Altos ACO will investigate all animal bite to human incidents, and quara Hills for Animal Care and the biting animal when required When a dog on human bite occurs control services. hours or is in progress, ACO will respond and direct the quarantine process per California Health and Safety Code 121575 et seq. ACO will provide a report documenting the quarantine, witness statements and the action of the animal. PAAC will provide the report to the Agency upon request. Agency will be responsible for all criminal filings. For after hour incidents that are not in progress, the Agency will take an initial report and provide PAAC with a copy of the report by the end of the shift. PAAC shall provide for the control of rabies through quarantine and testing consistent with the provisions of California Health and Safety Code 121575 et seq. PAAC shall be responsible for filing the Annual report of Local Rabies Control Activities and Statement of Enforcement with the California State Department of Health Services. Animal bite on human incidents reported by medical personnel will be accepted and documented by an ACO. PAAC will notify Agency of relevant jurisdiction of the incident for evaluation of criminal filing. PIN shall provide one "actual" at cost rabies vaccination clinic in accordance with State law. SECTION 7: Animal Licensing • PAAC shall issue and maintain a dog licensing program for Agency including issuing Administrative Citations for licensing violations. • Dog licenses will be processed at PAAC, by mail, and/or online. PAAC and PIN shall provide the licensing applications to residents. • PAAC will mail reminder notices prior to the expiration of the dog license. • Microchip implantation and information will be available at PIN for a fee and a database will be maintained. SECTION 8: Veterinary Care • Veterinary care for sick or injured stray animals will be provided. • The City of Palo Alto shall oversee all animal health, hygiene, and nutritional needs of the animals under the care of PIN. Item 8: Staff Report Pg. 20 Packet Pg. 47 of 281 SECTION 9: Wildlife Item 8 Attachment B - Contract between City of Palo Alto and Town of Los Altos Hills for Animal Care and Control Services. • ACO will respond to and assess reports of sick, injured, or orphan&i wnanie. ii impound is necessary, PAAC may euthanize or request PIN arrange for the animals transport to the nearest wildlife rehab center. • Nuisance wildlife calls will be referred to Santa Clara County Vector Control or to a private pest control company. No service provided by ACOs. • ACO will assess and may respond to complaints of wildlife presenting a threat to human safety and take appropriate action. Agency will assist upon request from ACO. • ACO will pick up dead wildlife on public streets/land weighing up to 50 pounds. For animals over 50 pounds, PAAC may contact a designated rendering company for removal. Removal of dead wildlife on private property should be referred to the designated rendering company and associated costs will be the responsibility of the resident Item 8: Staff Report Pg. 21 Packet Pg. 48 of 281 Item 9 Item 9 Staff Report CITY OF PALO ALTO City Council Staff Report From: City Manager Report Type: Consent Item Lead Department: Administrative Services Meeting Date: May 6, 2024 Report #:2308-1959 TITLE Approval of General Service Agreement Contract Number C24189229 with Xerox in an Amount Not to Exceed $382,165 to Lease Printing Equipment for the Print Shop for a Period of Three Years; CEQA Status: Not a Project RECOMMENDATION Staff recommends the City Council approve and authorize the City Manager or their designee to execute Contract No. C24189229 (Attachment A) with Xerox Corporation (Xerox) to lease printing equipment for the City's Print Shop for a term of three (3) years and a total amount not -to-exceed $382,165, including $347,422 for basic services and $34,743 for additional services. BACKGROUND The Administrative Services Department's printing operation provides printing services to all City departments. The Print Shop operation was approved by Council to remain in-house as of November 13th, 2023 (2310-21651). The Print Shop currently has two (2) printers, Xerox Model No. V180, which is capable of printing both color and black and white, and one (1) model N120, which is only black and white. The Xerox N120 is in almost constant use processing print jobs daily. Every week this printer produces the Council packets that may contain as many as 500 pages, Planning's Architectural Review Board (ARB) and Human Resources Board (HRB) packets, which can average 200 pages for each packet, as well as thousands of notification postcards. It also supports all city departments printing large volumes of copies of forms using standard copy paper or specialized colored paper and multiple -part no carbon required (NCR) paper for documents that require carbon copies. The color printer, Xerox V180 is also an important part of the Print Shop, it provides services to departments that mainly interact with the public. The Xerox V180 is routinely printing color copies, flyers, brochures, booklets, programs, manuals, and specialized print requests for the 1 City Council, 11/13/2023; https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82592 Item 9: Staff Report Pg. 1 Packet Pg. 49 of 281 Item 9 Item 9 Staff Report Community Service Department and various departments at City Hall. The Print Shop has other smaller equipment that helps to support the printers such as the paper folders and paper cutter which are utilized to cut and fold printed paper to various sizes. For the larger print requests of packets and manuals, the Print Shop can offer a variety of finishes including 3 -hole punch, comb, spiral binding, and fastback. This equipment ensures the Print Shop can fulfill most print requests. ANALYSIS The existing equipment in the Print Shop has reached its "end of life" cycle and has been discontinued by the manufacturer. Over the past nine years the black and white printer model N120 has printed 4,948,810 copies and the color printer model V180 has produced 2,242,575 copies. Finding replacement parts is challenging and results in downtime and new equipment is recommended to keep the Print Shop functioning efficiently. The approval of this contract will replace the existing equipment. The new equipment model numbers will be VR280 (Versant 280 Press) this is a color printer which features larger paper tray capacity feeders, allowing production to print for a longer time without interruptions and the DPS120 (Nuvera 120 EA System) which will print in black and white, with a printing speed of 120 pages per minute. Both pieces of equipment will feature various finishing options, like collating, stapling, folding and hole punching, which will help decrease manual labor time and increase the turnaround time for certain print requests. The new equipment will significantly reduce the downtime currently associated with service calls. Previously the Print Shop leased equipment from Xerox per contract S18170901 for $151,624 and contract S17166823 for $253,119 for a grand total of $404,744. The previous contracts were for three machines (two V180 and one N120). The new contract C24189229 for an annual cost of $127,388 ($382,165 for three years) is for leasing two machines (VR280 and DPS120). The two new machines can cover the work of the three older machines due to having a higher capacity and can copy in both black and white and color. The basic annual lease is $93,213 and the remaining costs are based on per page printed and taxes. The per page cost ranges from $0.0085 to $0.0356. The printing costs were determined based on past printing volume. The City will save approximately $22,570 over three years between the previous and new lease contract. Procurement Process This contract was awarded utilizing the Sourcewell Cooperative Agreement Number 030321- XOX2 as authorized by the Palo Alto Municipal Code 2.30.360(j). The cooperative purchasing 2 Sourcewell Cooperative Agreement #030321-XOX; https://www.sourcewell-mn.gov/cooperative- purchasing/030321-XOX Item 9: Staff Report Pg. 2 Packet Pg. 50 of 281 Item 9 Item 9 Staff Report agreement contract was competitively solicitated and publicly awarded through the cooperating purchasing organization Sourcewell and the City is a member of the cooperative. FISCAL/RESOURCE IMPACT Funding for this contract is available in the FY 2024 Adopted Operating Budget of the Administrative Services Department in the Print and Mail Fund. Funding for future years of the contract is subject to City Council approval through the annual budget process. The Print and Mail Fund allocates expenses to departments proportionally to their use of services to offset the costs to provide these services. While the annual not -to -exceed amount is $382,165, the actual annual cost will vary depending on printing quantity, color versus black and white, and volume demand from various departments. STAKEHOLDER ENGAGEMENT City Departments participated in previous surveys/meetings to determine printing requirements. This study was done as part of an exploration of possibly outsourcing the City's printing needs. The outcome was to retain in-house printing services. ENVIRONMENTAL REVIEW These services do not constitute a project for the purposes of the California Environmental Quality Act. ATTACHMENTS Attachment A: Contract with Xerox C24189229 APPROVED BY: Kiely Nose, Assistant City Manager Item 9: Staff Report Pg. 3 Packet Pg. 51 of 281 DocuSign Envelope ID: D9306DF5-DC46-4587-8E01 -1 F5BFDFECC37 Item 9 Attachment A - Contract with Xerox; C24189229 CITY OF PALO ALTO CONTRACT NO. C24189229 GENERAL SERVICES AGREEMENT THIS AGREEMENT made and entered into on the 28th day of February, 2023, by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and XEROX CORPORATION, a New York corporation, located at 201 Merritt 7, Norwalk, Connecticut 06851 Telephone Number: (800) 822-2200 ("CONTRACTOR"). In consideration of their mutual covenants, the parties hereto agree as follows: 1. SERVICES. CONTRACTOR shall provide or furnish the services (the "Services") described in the Scope of Services, attached at Exhibit A. 2. EXHIBITS. The following exhibits are attached to and made a part of this Agreement: ® "A" - Scope of Services ® "Attachment A" — Lease Equipment & Printing Rates "A-1" — On -Call Task Order (Optional) "B" - Schedule of Performance "C" — Schedule of Fees "D" - Insurance Requirements CONTRACT IS NOT COMPLETE UNLESS ALL INDICATED EXHIBITS ARE ATTACHED. 3. TERM. The term of this Agreement is from February 1st 2024 to January 31St 2027 inclusive, subject to the provisions of Sections R and W of the General Terms and Conditions. This contract is subject to the terms and conditions of the Sourcewell contract #030321 ("Sourcewell Contract") which is incorporated into this agreement by its sole reference. 4. SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within the term of this Agreement in a reasonably prompt and timely manner based upon the circumstances and direction communicated to CONTRACTOR, and if applicable, in accordance with the schedule set forth in the Schedule of Performance, attached at Exhibit B. Time is of the essence in this Agreement. City of Palo Alto General Services Agreement 1 Rev. March 29, 2018 Item 9: Staff Report Pg. 4 Packet Pg. 52 of 281 DocuSign Envelope ID: D9306DF5-DC46-4587-8E01-1F5BFDFECC37 Item 9 Attachment A - Contract with Xerox; C24189229 5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees to accept as not -to -exceed compensation for the full performance of the Services and reimbursable expenses, if any: I� A sum calculated in accordance with the fee schedule set forth at Exhibit C, not to exceed a total leasing and printing Services compensation amount of Three Hundred Forty Seven Thousand Four Hundred Twenty Two Dollars ($347,422); including, Additional Services for a not to exceed total maximum compensation of Three Hundred Eighty Two Thousand One Hundred Sixty Four Dollars and Twenty Cents ($382,164.20). CONTRACTOR agrees that it can perform the Services for an amount not to exceed the total maximum compensation set forth above. Any hours worked or services performed by CONTRACTOR for which payment would result in a total exceeding the maximum amount of compensation set forth above for performance of the Services shall be at no cost to CITY. Fv CITY has set aside the sum of Thirty Four Thousand Seven Hundred Forty Two Dollars and Twenty Cents ($34,742.20) for Additional Services. CONTRACTOR shall provide Additional Services only by advanced, written authorization from the City Manager or designee. CONTRACTOR, at the CITY's request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONTRACTOR's proposed maximum compensation, including reimbursable expense, for such services. Compensation shall be based on the hourly rates set forth above or in Exhibit C (whichever is applicable), or if such rates are not applicable, a negotiated lump sum. CITY shall not authorize and CONTRACTOR shall not perform any Additional Services for which payment would exceed the amount set forth above for Additional Services. Payment for Additional Services is subject to all requirements and restrictions in this Agreement. 6. COMPENSATION DURING ADDITIONAL TERMS. CONTRACTOR'S compensation rates for each additional term shall be the same as the original term 7. CLAIMS PROCEDURE FOR "9204 PUBLIC WORKS PROJECTS". For purposes of this Section 7, a "9204 Public Works Project" means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. Public Contract Code Section 9204 mandates certain claims procedures for Public Works Projects, which are set City of Palo Alto General Services Agreement 2 Rev. March 29, 2018 Item 9: Staff Report Pg. 5 Packet Pg. 53 of 281 DocuSign Envelope ID: D9306DF5-DC46-4587-8E01-1F5BFDFECC37 Item 9 Attachment A - Contract with Xerox; C24189229 forth in "Appendix _ Claims for Public Contract Code Section 9204 Public Works Projects". This project is not a 9204 Public Works Project. 8. INVOICING. Send all invoices to CITY, Attention: Project Manager. The Project Manager is: Nichol Banks, Dept.: Administration Services, Revenue Division, Telephone: (650) 329-2125, Email: Frank.Lee@CityofPaloAlto.org. Invoices shall be submitted in arrears for Services performed. Invoices shall not be submitted more frequently than monthly. Invoices shall provide a detailed statement of Services performed during the invoice period and are subject to verification by CITY. CITY shall pay the undisputed amount of invoices within 30 days of receipt. Should the CITY dispute an invoice, Xerox requires that the CITY provides CONTRACTOR written notice describing the item(s) and reason(s) you are disputing the invoice amount. CONTRACTOR agrees to work with the CITY to resolve the dispute, and will issue an adjustment invoice, as required. Pending the resolution of the dispute, the CITY is expected to pay all undisputed amounts, including the Minimum Lease Payment which is not subject to dispute at any time. GENERAL TERMS AND CONDITIONS A. ACCEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of this Agreement. This Agreement includes and is limited to the terms and conditions set forth in sections 1 through 8 above, these general terms and conditions and the attached exhibits. B. QUALIFICATIONS. CONTRACTOR represents and warrants that it has the expertise and qualifications to complete the services described in Section 1 of this Agreement, entitled "SERVICES," and that every individual charged with the performance of the services under this Agreement has sufficient skill and experience and is duly licensed or certified, to the extent such licensing or certification is required by law, to perform the Services. CITY expressly relies on CONTRACTOR's representations regarding its skills, knowledge, and certifications. CONTRACTOR shall perform all work in accordance with generally accepted business practices and performance standards of the industry, including all federal, state, and local operation and safety regulations. C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the performance of this Agreement, CONTRACTOR and any person employed by CONTRACTOR shall at all times be considered an independent CONTRACTOR and not an agent or employee of CITY. CONTRACTOR shall be responsible for employing or engaging all persons necessary to complete the work required under this Agreement. City of Palo Alto General Services Agreement 3 Rev. March 29, 2018 Item 9: Staff Report Pg. 6 Packet Pg. 54 of 281 DocuSign Envelope ID: D9306DF5-DC46-4587-8E01 -1 F5BFDFECC37 Item 9 Attachment A - Contract with Xerox; C24189229 D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any Services under this Agreement unless CONTRACTOR obtains prior written consent of CITY. CONTRACTOR shall be solely responsible for directing the work of approved subcontractors and for any compensation due to subcontractors. E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes, fees, contributions or charges applicable to the conduct of CONTRACTOR's business. CITY is responsible for all applicable taxes, fees, or charges of any kind, (including interest and penalties) assessed by any governmental entity on the Agreement or the amounts payable under the Agreement ("Taxes"), which will be included in CONTRACTOR's invoice, unless CITY provides proof of its tax exemption status. F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services comply with all applicable federal, state and local laws, ordinances, regulations, and orders. G. PALO ALTO MINIMUM WAGE ORDINANCE. CONTRACTOR 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, CONTRACTOR shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONTRACTOR shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code section 4.62.060. H. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole expense, repair in kind, or as the City Manager or designee shall direct, any damage to public or private property that occurs in connection with CONTRACTOR's performance of the Services. CITY may decline to approve and may withhold payment in whole or in part to such extent as may be necessary to protect CITY from loss because of defective work not remedied or other damage to the CITY occurring in connection with CONTRACTOR's performance of the Services. CITY shall submit written documentation in support of such withholding upon CONTRACTOR's request. When the grounds described above are removed, payment shall be made for amounts withheld because of them. I. WARRANTIES. CONTRACTOR expressly warrants that all services provided under this Agreement shall be performed in a professional and workmanlike manner in accordance with generally accepted business practices and performance City of Palo Alto General Services Agreement 4 Rev. March 29, 2018 Item 9: Staff Report Pg. 7 Packet Pg. 55 of 281 DocuSign Envelope ID: D9306DF5-DC46-4587-8E01-1F5BFDFECC37 Item 9 Attachment A - Contract with Xerox; C24189229 standards of the industry and the requirements of this Agreement. CONTRACTOR expressly warrants that all materials, goods and equipment provided by CONTRACTOR under this Agreement shall be fit for the particular purpose intended, shall be free from defects, and shall conform to the requirements of this Agreement. CONTRACTOR agrees to promptly replace or correct any material or service not in compliance with these warranties, including incomplete, inaccurate, or defective material or service, at no further cost to CITY. The warranties set forth in this section shall be in effect for a period of one year from completion of the Services and shall survive the completion of the Services or termination of this Agreement. J. MONITORING OF SERVICES. CITY may monitor the Services performed under this Agreement to determine whether CONTRACTOR's work is completed in a satisfactory manner and complies with the provisions of this Agreement. K. CITY'S PROPERTY. Any reports, information, data or other material (including copyright interests) developed, collected, assembled, prepared, or caused to be prepared under this Agreement will become the property of CITY without restriction or limitation upon their use and will not be made available to any individual or organization by CONTRACTOR or its subcontractors, if any, without the prior written approval of the City Manager. L. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for three (3) years from the date of final payment, CONTRACTOR's records pertaining to matters covered by this Agreement. CONTRACTOR agrees to maintain accurate books and records in accordance with generally accepted accounting principles for at least three (3) following the terms of this Agreement. CONTRACTOR agrees, upon 10 business days written request to make available to the CITY financial and other records that are required to substantiate the Services and accurate billings under this Agreement. The terms "books and records" includes invoices or orders associated with this Agreement. This term does not include Contractor personnel information or other Contractor proprietary information. M. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial acceptance by CITY shall operate as a waiver on the part of CITY of any of its rights under this Agreement. N. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full force during the term of this Agreement, the insurance coverage described at Exhibit D. Insurance must be provided by companies with a Best's Key Rating of A - :VII or higher and which are otherwise acceptable to CITY's Risk Manager. The Risk Manager must approve deductibles and self -insured retentions. In addition, all City of Palo Alto General Services Agreement 5 Rev. March 29, 2018 Item 9: Staff Report Pg. 8 Packet Pg. 56 of 281 DocuSign Envelope ID: D9306DF5-DC46-4587-8E01-1F5BFDFECC37 Item 9 Attachment A - Contract with Xerox; C24189229 policies, endorsements, certificates and/or binders are subject to approval by the Risk Manager as to form and content. CONTRACTOR shall obtain a policy endorsement naming the City of Palo Alto as an additional insured under any general liability or automobile policy. CONTRACTOR shall obtain an endorsement stating that the insurance is primary coverage and will not be canceled or materially reduced in coverage or limits until after providing 30 days prior written notice of the cancellation or modification to the Risk Manager. CONTRACTOR shall provide certificates of such policies or other evidence of coverage satisfactory to the Risk Manager, together with the required endorsements and evidence of payment of premiums, to CITY concurrently with the execution of this Agreement and shall throughout the term of this Agreement provide current certificates evidencing the required insurance coverages and endorsements to the Risk Manager. CONTRACTOR shall include all subcontractors as insured under its policies or shall obtain and provide to CITY separate certificates and endorsements for each subcontractor that meet all the requirements of this section. The procuring of such required policies of insurance shall not operate to limit CONTRACTOR's liability or obligation to indemnify CITY under this Agreement. O. HOLD HARMLESS. To the fullest extent permitted by law and without limitation by the provisions of section N relating to insurance, CONTRACTOR shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents from and against any and all demands, claims, injuries, losses, or liabilities of any nature, including death or injury to any person, property damage or any other loss and including without limitation all damages, penalties, fines and judgments, associated investigation and administrative expenses and defense costs, including, but not limited to reasonable attorney's fees, courts costs and costs of alternative dispute resolution), arising out of, or resulting in any way from or in connection with the performance of this Agreement. CONTRACTOR's obligations under this Section apply regardless of whether or not a liability is caused or contributed to by any negligent (passive or active) act or omission of CITY, except that CONTRACTOR shall not be obligated to indemnify for liability arising from the negligence or willful misconduct of CITY. The acceptance of the Services by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section survive the completion of the Services or termination of this Agreement. CONTRACTOR does not agree to indemnify the CITY due to any negligent or willful act on the part of the CITY, its officers, employees, volunteers, or agents, or the negligent or willful acts of any party other than a CONTRACTOR officer, employee, or agent. P. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONTRACTOR 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, City of Palo Alto General Services Agreement 6 Rev. March 29, 2018 Item 9: Staff Report Pg. 9 Packet Pg. 57 of 281 DocuSign Envelope ID: D9306DF5-DC46-4587-8E01-1F5BFDFECC37 Item 9 Attachment A - Contract with Xerox; C24189229 housing status, marital status, familial status, weight or height of such person. CONTRACTOR 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. Q. WORKERS' COMPENSATION. CONTRACTOR, by executing this Agreement, certifies that it is aware of the provisions of the Labor Code of the State of Califor- nia which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and certifies that it will comply with such provisions, as applicable, before commencing and during the performance of the Services. R. TERMINATION. The City Manager may terminate this Agreement without cause by giving ten (10) days' prior written notice thereof to CONTRACTOR. Termination under this provision shall not apply to orders received and equipment installed prior to the effective date of termination. In the event the Agreement is terminated, individual lease placements will continue until their scheduled expiration date, and continue to be governed by, and be subject to, the terms and conditions of the individual lease Agreement and the Sourcewell Contract. The CITY and CONTRACTOR hereby agree lease orders are based on a firm 36 - month equipment installation commitment and cannot be terminated except for fiscal year funds non -appropriation or uncured Xerox default. Cancellation for any other reason will result in a charge equal to the sum of the remaining payments less unearned maintenance and supply charges discounted at 4% per annum. If CONTRACTOR fails to perform any of its material obligations under this Agreement in addition to all other remedies provided by law, the City Manager may terminate this Agreement immediately upon written notice of termination provided CONTRACTOR has failed to cure its shortfall within 30 days of receipt of the CITY's written notice of default. The CITY can terminate the affected Services or Equipment without penalty if the performance failure is not corrected to the contracted specification. Upon receipt of such notice of termination, CONTRACTOR shall immediately discontinue performance. CITY shall pay CONTRACTOR for services satisfactorily performed up to the effective date of termination. If the termination is for uncured CONTRACTOR's default, CITY may deduct from such payment the amount of actual damage, if any, sustained by CITY due to CONTRACTOR's failure to perform its material obligations under this Agreement. Upon termination, CONTRACTOR shall immediately deliver to the City Manager any and all copies of studies, sketches, drawings, computations, and other material or products, whether or not completed, prepared by CONTRACTOR or given to CONTRACTOR, in connection with this Agreement. Such materials shall become the property of CITY. City of Palo Alto General Services Agreement 7 Rev. March 29, 2018 Item 9: Staff Report Pg. 10 Packet Pg. 58 of 281 DocuSign Envelope ID: D9306DF5-DC46-4587-8E01-1F5BFDFECC37 Item 9 Attachment A - Contract with Xerox; C24189229 S. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors and assigns to all covenants of this Agreement. This Agreement shall not be assigned or transferred without the prior written consent of CITY. No amendments, changes or variations of any kind are authorized without the written consent of CITY. T. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of this Agreement. CONTRACTOR further covenants that, in the performance of this Agreement, it will not employ any person having such an interest. CONTRACTOR certifies that no CITY officer, employee, or authorized representative has any financial interest in the business of CONTRACTOR and that no person associated with CONTRACTOR has any interest, direct or indirect, which could conflict with the faithful performance of this Agreement. CONTRACTOR agrees to advise CITY if any conflict arises. U. GOVERNING LAW. This Agreement shall be governed and interpreted by the laws of the State of California. V. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire agreement between the parties with respect to the services that may be the subject of this Agreement. Any variance in the exhibits does not affect the validity of the Agreement and the Agreement itself controls over any conflicting provisions in the exhibits. This Agreement supersedes all prior agreements, representations, statements, negotiations and undertakings whether oral or written. In the event of a conflict between the provisions in this Agreement, the parties agree the order of precedence shall be this Agreement, followed by the Sourcewell Contract. W. 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 will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. In order to terminate the Agreement due to funding non -appropriation, CONTRACTOR requires that the CITY sends CONTRACTOR written notice, within 30 -days of its governing body's decision not to appropriate funds, stating that the CITY's governing body failed to appropriate funds and that the governing body was unable to find an assignee within the CITY's organization to continue the Agreement. The notice must certify that the canceled equipment is not being replaced by equipment performing similar City of Palo Alto General Services Agreement 8 Rev. March 29, 2018 Item 9: Staff Report Pg. 11 Packet Pg. 59 of 281 DocuSign Envelope ID: D9306DF5-DC46-4587-8E01-1F5BFDFECC37 Item 9 Attachment A - Contract with Xerox; C24189229 functions during the ensuing fiscal year and indicate that the decision to cancel the Agreement was not initiated by any individual involved in the Agreement's management or execution. In addition, the CITY will be required to return the equipment to Xerox. The CITY will then be released from its obligation to make any further payments beyond those through the end of the last fiscal period for which funds have been appropriated. X. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONTRACTOR shall comply with CITY's Environmentally Preferred Purchasing policies which are available at CITY's Purchasing Division, which are incorporated by reference and may be amended from time to time. CONTRACTOR 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, CONTRACTOR shall comply with the following zero waste requirements: • All printed materials provided by CONTRACTOR to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double - sided and printed on a minimum of 30% or greater post -consumer content paper, unless otherwise approved by CITY's Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post -consumer material and printed with vegetable based inks. • Goods purchased by Contractor 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. • Reusable/returnable pallets shall be taken back by CONTRCATOR, at no additional cost to CITY, for reuse or recycling. CONTRACTOR shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. Y. AUTHORITY. The individual(s) executing this Agreement on behalf of the parties represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. Z. PREVAILING WAGES This Project is not subject to prevailing wages. CONTRACTOR is not required to pay prevailing wages in the performance and implementation of the Project in accordance with SB 7, if the Agreement is not a public works contract, if Agreement does not include a public works construction project of more than City of Palo Alto General Services Agreement 9 Rev. March 29, 2018 Item 9: Staff Report Pg. 12 Packet Pg. 60 of 281 DocuSign Envelope ID: D9306DF5-DC46-4587-8E01-1F5BFDFECC37 Item 9 Attachment A - Contract with Xerox; C24189229 $25,000, or the Agreement does not include a public works alteration, demolition, repair, or maintenance (collectively, 'improvement') project of more than $15,000. AA.DIR REGISTRATION. In regard to any public work construction, alteration, demolition, repair or maintenance work, CITY will not accept a bid proposal from or enter into this Agreement with CONTRACTOR without proof that CONTRACTOR and its listed subcontractors are registered with the California Department of Industrial Relations ("DIR") to perform public work, subject to limited exceptions. City requires CONTRACTOR and its listed subcontractors to comply with the requirements of SB 854. CITY provides notice to CONTRACTOR of the requirements of California Labor Code section 1771.1(a), which reads: "A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the Agreement is awarded." CITY gives notice to CONTRACTOR and its listed subcontractors that CONTRACTOR is required to post all job site notices prescribed by law or regulation and CONTRACTOR is subject to SB 854 -compliance monitoring and enforcement by DIR. CITY requires CONTRACTOR and its listed subcontractors to comply with the requirements of Labor Code section 1776, including: Keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, CONTRACTOR and its listed subcontractors, in connection with the Project. The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of CONTRACTOR and its listed subcontractors, respectively. City of Palo Alto General Services Agreement 10 Rev. March 29, 2018 Item 9: Staff Report Pg. 13 Packet Pg. 61 of 281 DocuSign Envelope ID: D9306DF5-DC46-4587-8E01-1F5BFDFECC37 Item 9 Attachment A - Contract with Xerox; C24189229 At the request of CITY, acting by its project manager, CONTRACTOR and its listed subcontractors shall make the certified payroll records available for inspection or furnished upon request to the project manager within ten (10) days of receipt of CITY's request. ❑ [For state- and federally -funded projects] CITY requests CONTRACTOR and its listed subcontractors to submit the certified payroll records to the project manager at the end of each week during the Project. If the certified payroll records are not produced to the project manager within the 10 -day period, then CONTRACTOR and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and CITY shall withhold the sum total of penalties from the progress payment(s) then due and payable to CONTRACTOR. Inform the project manager of the location of CONTRACTOR's and its listed subcontractors' payroll records (street address, city and county) at the commencement of the Project, and also provide notice to the project manager within five (5) business days of any change of location of those payroll records. BB. CONTRACT TERMS. All unchecked boxes do not apply to this Agreement. In the case of any conflict between the terms of this Agreement and the exhibits hereto or CONTRACTOR's proposal (if any), the Agreement shall control. In the case of any conflict between the exhibits hereto and CONTRACTOR's proposal, the exhibits shall control. IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO City Manager Approved as to form: City Attorney or Designee XEROX CORPORATION Officer 1 DocuSigned by: Byy__________II �Wt,�,t,V'Sbin, s��; Chaley Henderson Name Title Finance Director Telephone: 952-806-6160 Officer 2E�11,467704DABF48F DocuSigned by: Y4Z4•4 By Michelle Yoshino Name Title Xerox General Manager Telephone: 714262-8854 City of Palo Alto General Services Agreement 11 Rev. March 29, 2018 Item 9: Staff Report Pg. 14 Packet Pg. 62 of 281 DocuSign Envelope ID: D9306DF5-DC46-4587-8E01 -1 F5BFDFECC37 Item 9 Attachment A - Contract with Xerox; C24189229 EXHIBIT A SCOPE OF SERVICES PRINTING AND EQUIPMENT SERVICES The CITY will trade in previously leased older model equipment to CONTRACTOR. The CONTRACTOR will lease to the CITY on three (3) pieces of equipment for delivery and set up. The VR280 (versant 280 press), VR280STND (ex standalone ps) and DPS 120 (nuvera 120EA system) models are for printing equipment along with furnishing supplies and maintenance services are performing at: • High quality, high performance; • Reliable service, very little downtime; • applicable network printing options. CONTRACTOR will lease printing equipment to include maintenance services and supplies for a thirty (36) month term of the following equipment and printing services: DPS120 (Nuvera 120 EA System) Equipment No. 1 model creates Black and White Impression Specifications: • Dual Basic finishing model • Feed Module 4 Tray • Imposition License • Image Quality Pack • Disk Overwrite • Productivity Pack • Postscript & P • Xerox Performance Publisher Advanced Document Toolkit • Customer Education • Analyst Services VR280 (Versant 280 Press) Equipment No. 2 model creates Colored Impression Specifications: - Advanced Oversized High Capacity Feeder - Crease/2 Side Trimmer - Envelope Supply Kit - Book maker/ Inline Spectrum - Professional Book Maker Finisher - Square Fold Trimmer - Top Tray Aligner - USB Enablement Kit - Production Ready Interposer - Production Ready 2/3 Punch - Extra Large Sheet Feeder Support Kit City of Palo Alto General Services Agreement 12 Rev. March 29, 2018 Item 9: Staff Report Pg. 15 Packet Pg. 63 of 281 DocuSign Envelope ID: D9306DF5-DC46-4587-8E01 -1 F5BFDFECC37 Item 9 Attachment A - Contract with Xerox; C24189229 VR280STND (EX Standalone PS) Equipment model creates Advance Colored Impression Specifications: - Color Profiler Suite - Compose With Lac - Advanced Faci Kit - Efi Performance Package - Customer Education - Analyst Services All of the above are the software components for the printing system Maintenance & Service Requirements CONTRACTOR leasing printing equipment services responses shall include but not limited to the following: • Click charge needs to include service, repairs, parts, labor, and IT support. • Response to service requests within 1 hour • Maintenance/repair calls must be performed within twenty-four (24) hours of request for service. • The maximum allowable downtime for any one piece of equipment is forty-eight (48) hours. • CONTRACTOR assumes all responsibility for hardware performance due to service parts and components. • Contractor will assume responsibility for disposal of and recycling of all service parts. • CONTRACTOR will supply CITY with a call completion notification in electronic format. • A "loaner" machine must be placed in the building for any equipment that cannot be repaired and restored to normal operating service within five (5) days. • New equipment training within 2 days of install. • Excluded from the requirements are delays resulting from acts of nature, accidents, or extreme weather conditions. • The CITY requires help desk support for all CITY staff users on all multifunction peripheral (MFP) to specifically: o Provide a single point of contact for CITY staff; o Unlimited phone support on all initial service calls during normal business hours. o Unlimited network support during normal business hours, 8:00 A.M. to 4:30 P.M. Monday through Friday, with exception of statutory holidays. o Unlimited on -site training. Printer Removal, Delivery, Set-up and Acceptance: CONTRACTOR's leasing printer equipment removal, delivery and set up will be inclusive to CITY location. Basic installation is to include initial operating supplies (except paper). A pre -delivery walkthrough of each site and equipment location will be coordinated with City of Palo Alto General Services Agreement 13 Rev. March 29, 2018 Item 9: Staff Report Pg. 16 Packet Pg. 64 of 281 DocuSign Envelope ID: D9306DF5-DC46-4587-8E01 -1 F5BFDFECC37 Item 9 Attachment A - Contract with Xerox; C24189229 the CITY to ensure access and power requirements are acceptable. An operator's manual is to be delivered with each machine. Equipment and Supply Maintenance Requirements: CONTRACTOR equipment maintenance standard will consist of but not limited to the following: • Consumable supplies must meet original equipment manufacturers specifications. • CONTRACTOR assumes all responsibility for hardware performance due to consumable supplies i.e. Xerox supplies, toner, waste containers and drum cartridges. (CITY is responsible for replenishing paper supply) • Covers all network printers included in contract. • CONTRACTOR retains ownership of all consumable inventory. • CONTRACTOR to be responsible for all toner, fix/repair, maintenance and/or replacement of all output devices. • Hardware must meet specifications and minimum uptime requirements. • Preventative Maintenance Schedules planned and completed according to manufacturers' recommended service schedules. • Exclusive utilization of Original Equipment Manufacturer (OEM) parts and supplies for replacements. Various Printing Services (As Needed) During operational use of the leased equipment no. 1 through 3, the CITY will process various printing(s) as needed. The CITY will allocate a not to exceed budget in the amount of $67,780.12 set forth in Section 5, compensation for the original term of Agreement to cover all printing cost reference in "Attachment A — Lease Equipment & Printing Rates". City of Palo Alto General Services Agreement 14 Rev. March 29, 2018 Item 9: Staff Report Pg. 17 Packet Pg. 65 of 281 DocuSign Envelope ID: D9306DF5-DC46-4587-8E01-1F5BFDFECC37 Item 9 Attachment A - Contract with Xerox; C24189229 ATTACHMENT A LEASE EQUIPMENT & PRINTING RATES EOUIPMENT NO. 1: ..J7TrTrI .- .- r. r 1. DPS120 (NUVERA 120 EA SYSTEM) - Xerox 120 DPS S/N - Dual Basic Fin Mod Lease Term: Purchase 36 TB7004179 3/29/2024 - Feed Module 4 Tray Option: months Trade -In as of Payment 87 - Imposition License FMV - ImageQuality Pack - Disk Overwrite - Productivity Pack - Postscript & Ppml Sw - Xpp Adv Doc Toolkit - Customer Ed - Analyst Services 1. DPS120 $3,997.45 1: Black and All Prints $0.0039 - Consumable Supplies Included for all White prints Impressions - Pricing Fixed for Term Total $3,997.45 Minimum Payments (Excluding Applicable Taxes) EQUIPMENT NO.2 & 3: .. 1. VR280 (VERSANT 280 PRESS) - Advanced Ohcf Lease Term: Purchase 36 months-XeroxV180PERF 3/29/2024 - Crease/2 Side Trmr Option: FMV S/N 1AB190284 - Envelope Sup Kit Trade -In as of Payment 75 - IdmW/ Inline Spectr - Pr Book Mkr Fin - Sq Fold Trimmer -TopTrayAligner - Usb Enablement Kit - Prd Rdy Interposer - Prd Rdy2/3 Punch - XIs Support Kit City of Palo Alto General Services Agreement 15 Rev. March 29, 2018 Item 9: Staff Report Pg. 18 Packet Pg. 66 of 281 DocuSign Envelope ID: D9306DF5-DC46-4587-8E01-1F5BFDFECC37 Item 9 Attachment A - Contract with Xerox; C24189229 2. VR280STND (EX STANDALONE - XeroxV180FFPS PS) SIN 4BP809287 -ColorProfilerSuite Lease Term: Purchase 36 months Trade -In as of Payment 75 3/29/2024 - Compose With Lac Option: FMV - Advanced Faci Kit - Efi Permformance Pkg - Customer Ed - Analyst Services 1. VR280 I $2,681.62 I 1: Color All Prints $0.0356 Impressions 2: Black and All Prints $0.0085 White Impressions 3: Color Large All Prints $0.0030 Impressions 4: Extra Long All Prints $0.0356 Impressions - Consumable Supplies Included for all prints - Pricing Fixed for Term 2. VR280STND $1,088.76 N/A N/A I, _ - Full Service Maintenance Included Total $3,770.38 Minimum Payments (Excluding Applicable Taxes) City of Palo Alto General Services Agreement 16 Rev. March 29, 2018 Item 9: Staff Report Pg. 19 Packet Pg. 67 of 281 DocuSign Envelope ID: D9306DF5-DC46-4587-8E01 -1 F5BFDFECC37 Item 9 Attachment A - Contract with Xerox; C24189229 EXHIBIT "A-1" GENERAL SERVICES TASK ORDER Contractor hereby agrees to perform the work detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into the Agreement by this reference. The Contractor shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. Purchase Requisition No. IA. MASTER AGREEMENT NUMBER 1 B. TASK ORDER NO. 2. CONTRACTOR 3. PERIOD OF PERFORMANCE: START: 4 TOTAL TASK ORDER PRICE: $ BALANCEREMAINING IN MASTER AGREEMENT $_ 5. BUDGET CODE: COST CENTER COST ELEMENT_ 6. CITYPROJECTMANAGER'SNAME/DEPARTMENT, 7. DESCRIPTION OF SCOPE OF SERVICES MUST INCLUDE: 8. COMPLETION: ■ WORK TO BE PERFORMED ■ SCHEDULE OF WORK ■ BASIS FOR PAYMENT & FEE SCHEDULE ■ DELIVERABLES ■ REIMBURSABLES (with "not to exceed" cost) ATTACHMENTS: A: Scope of Services B: I hereby authorize the performance of the work described above in this Task Order APPROVED: CITY OF PALO ALTO BY: Name Title Date City of Palo Alto General Services Agreement ISSUE DATE WBS/CIP_PHASE I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Contractor. APPROVED: COMPANY NAME: BY: Name Title Date 17 Rev. March 29, 2018 Item 9: Staff Report Pg. 20 Packet Pg. 68 of 281 DocuSign Envelope ID: D9306DF5-DC46-4587-8E01 -1 F5BFDFECC37 Item 9 Attachment A - Contract with Xerox; C24189229 EXHIBIT B SCHEDULE OF PERFORMANCE ®CONTRACTOR shall perform the Services so as to complete each task within the time period specified below. The time to complete each task may be increased or decreased by mutual written agreement of the project managers for CONTRACTOR and CITY so long as all work is completed within the term of the Agreement. Upon request CONTRACTOR shall provide a detailed schedule of work consistent with the schedule below. Completion Task: Equipment & Services Dates (as specified below) from NTP 1. DPS120 (Nuvera 120 EA Systems) Leasing January 31, 2025 and Printin Service — Year 1 of 3 2. VR280 (Versant 280 Press) Leasing Printing January 31, 2025 Service — Year 1 of 3 3. VR280STND Full Maintenance Service — January 31, 2025 Year 1 of 3 4. DPS120 (Nuvera 120 EA Systems) Leasing January 31, 2026 and Printin Service — Year 2 of 3 5. VR280 (Versant 280 Press) Leasing Printing January 31, 2026 Service — Year 2 of 3 6. VR280STND Full Maintenance Service — January 31, 2026 Year 2 of 3 7. DPS120 (Nuvera 120 EA Systems) Leasing January 31, 2027 and Printin Service — Year 3 of 3 8. VR280 (Versant 280 Press) Leasing Printing January 31, 2027 Service — Year 3 of 3 9. VR280STND Full Maintenance Service — January 31, 2027 Year 3 of 3 City of Palo Alto General Services Agreement 18 Rev. March 29, 2018 Item 9: Staff Report Pg. 21 Packet Pg. 69 of 281 DocuSign Envelope ID: D9306DF5-DC46-4587-8E01 -1 F5BFDFECC37 Item 9 Attachment A - Contract with Xerox; C24189229 EXHIBIT C SCHEDULE OF FEES ® Compensation based upon fee schedule CITY shall pay CONTRACTOR according to the following rate schedule. The maximum amount of compensation to be paid to CONTRACTOR, including both payment for services and reimbursable expenses, shall not exceed the amounts set forth in Sections 5 and 6 of the Agreement. Any services provided or hours worked for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to CITY. BUDGET SCHEDULE TASK: MONTHLY EQUIPMENT LEASE & SERVICES NOT TO EXCEED ANNUAL AMOUNT Task 1 (Year 1 of 3) (DPS120 [Nuvera 120 EA Systems] Leasing and Printing Service) $47,969.40 Task 2 (Year 1 of 3) (VR280 [Versant 280 Press] Leasing Printing Service) $32,179.44 Task 3 (Year 1 of 3) (VR280STND Leasing & Full Maintenance Service — Year 1 of 3) $13,065.12 Task 4 (Year 2 of 3) (DPS120 [Nuvera 120 EA Systems] Leasing and Printing Service) $47,969.40 Task 5 (Year 2 of 3) (VR280 [Versant 280 Press] Leasing Printing Service — Year 2 of 3) $32,179.44 Task 6 (Year 2 of 3) (VR280STND Leasing & Full Maintenance Service) $13,065.12 Task 7 (Year 3 of 3) (DPS120 [Nuvera 120 EA Systems] Leasing and Printing Service) $47,969.40 Task 8 (Year 3 of 3) (VR280 [Versant 280 Press] Leasing Printing Service — Year 3 of 3) $32,179.44 Task 9 (Year 3 of 3) VR280STND Leasing & Full Maintenance Service) $13,065.12 Sub -total for Leasing Cost $279,641.88 Printing Service Budget for Years 1 thru 3 (As needed) $67,780.12 Reimbursable Expenses (if any) $0 Total for Lease, Printing Services and Reimbursable Expenses $347,422 Additional Services (if any, per Section 4) $34,742.20 Maximum Total Compensation $382,164.20 City of Palo Alto General Services Agreement 19 Rev. March 29, 2018 Item 9: Staff Report Pg. 22 Packet Pg. 70 of 281 DocuSign Envelope ID: D9306DF5-DC46-4587-8E01-1 F5BFDFECC37 Item 9 Attachment A - Contract with Xerox; C24189229 EXHIBIT D INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST'S KEY RATING OF A -:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: MINIMUM LIMITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH OCCURRENCE AGGREGATE YES WORKER'S COMPENSATION STATUTORY YES EMPLOYER'S LIABILITY STATUTORY BODILY INJURY $1,000,000 $1,000,000 YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $1,000,000 $1,000,000 PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY $1,000,000 $1,000,000 LIABILITY DAMAGE COMBINED. BODILY INJURY $1,000,000 $1,000,000 - EACH PERSON $1,000,000 $1,000,000 AUTOMOBILE LIABILITY, - EACH OCCURRENCE $1,000,000 $1,000,000 YES INCLUDING ALL OWNED, HIRED, PROPERTY DAMAGE $1,000,000 $1,000,000 NON -OWNED BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DAMAGE, COMBINED PROFESSIONAL LIABILITY, NO INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT YES 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 SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. INSURANCE COVERAGE MUST INCLUDE: A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL INSUREDS" A. PRIMARY COVERAGE City of Palo Alto General Services Agreement 20 Rev. March 29, 2018 Item 9: Staff Report Pg. 23 Packet Pg. 71 of 281 DocuSign Envelope ID: D9306DF5-DC46-4587-8E01-1 F5BFDFECC37 Item 9 Attachment A - Contract with Xerox; C24189229 WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 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. NOTICES SHALL BE EMAILED TO: PURCHASINGSUPPORT(a CITYOFPALOALTO.ORG City of Palo Alto General Services Agreement 21 Rev. March 29, 2018 Item 9: Staff Report Pg. 24 Packet Pg. 72 of 281 Item 10 Item 10 Staff Report City Council Staff Report From: City Manager CITY O F Report Type: CONSENT CALENDAR PALO Lead Department: Public Works ALTO Meeting Date: May 6, 2024 Report #:2404-2892 TITLE Adoption of a Resolution to Extend the Interim Parklet Program to July 31, 2024; CEQA Status - Categorically Exempt (Sections 15301 and 15304(e)) RECOMMENDATION Staff recommends that Council adopt the attached resolution to extend the interim parklet program to July 31, 2024 (from March 31, 2024). This resolution should have been included with the March 11, 2024 Council consent item extending the program, but was inadvertently left out. BACKGROUND/ANALYSIS On March 11, 2024, the City Council adopted an ordinance extending the interim parklet program to July 31, 2024 (from March 31, 2024).1 The attached resolution was inadvertently not included with its sibling ordinance on the consent item on March 11. The attached resolution and the ordinance adopted on March 11 work together to implement the interim parklet program and should have been presented together as has been done in the past. The resolution defines specific operating parameters of the program and directs City staff to make and enforce regulations. This resolution was last adopted in March 2023 and does not make any changes except to extend its validity to July 31, 2024.2 This resolution also does not propose any new changes to the interim parklet program as compared to the staff report from March 11, 2024. FISCAL/RESOURCE IMPACT There are no resource impacts associated with the adoption of this resolution. 'The City Council approved the ordinance 7-0 on March 11, 2024 on its consent calendar and 7-0 on second reading on April 1, 2024. The staff report and full item packet can be found at Consent Item 10 on the March 11, 2024 City Council agenda: https://cityofpaloaIto.primegov.com/Portal/Meeting?meetingTemplate Id=13513 2 The most recent version of this resolution is Resolution 10106, found here: https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=61940 Item 10: Staff Report Pg. 1 Packet Pg. 73 of 281 Item 10 Item 10 Staff Report Adoption of this resolution is categorically exempt from CEQA under CEQA Guidelines Sections 15301 (existing facilities) and 15304(e) (minor temporary use of land having negligible or no permanent effects on the environment). ATTACHMENTS Attachment A: Resolution Continuing the Interim Parklet Program APPROVED BY: Brad Eggleston, Director Public Works/City Engineer Item 10: Staff Report Pg. 2 Packet Pg. 74 of 281 *NOT YET ADOPTED* Resolution No. Item 10 Attachment A - Resolution Continuing the l.jnterim Parklet Program Resolution of the Council of the City of Palo Alto Continuing the Pilot Parklet Demonstration Program as Continued by Resolution 10106 RECITALS A. On June 23, 2020, the City Council adopted Resolution 9909 in response to COVID-19 and its effects on local businesses. Resolution 9909 created a Pilot Parklet Demonstration Program and also permitted the City Manager to temporarily close certain streets. At that time and since then, county and state regulations related to COVID-19 have limited or curtailed many indoor activities, including dining, bars, retail, and other recreational uses. B. On June 7, 2021, the City Council adopted Resolution 9962, which amended and restated Resolution 9909 on a non -emergency basis (among other changes). C. On October 18, 2021, the City Council adopted Resolution 9992, which amended and restated Resolution 9962 to continue the pilot program until June 30, 2022. D. On May 9, 2022, the City Council adopted Resolution 10036, which amended and restated Resolution 9962 to continue the pilot program until December 31, 2022. E. On October 24, 2022 the City Council adopted Resolution 10081, which amended and restated Resolution 10036 to continue the pilot program until June 30, 2023. F. On May 8, 2023, the City Council adopted Resolution 10106, which amended and restated Resolution 10081 to continue pilot program through March 31, 2024. G. The City Council now desires to continue the pilot program through July 31, 2024. H. This Resolution, like its predecessors, implements a temporary parklet program authorized by Ordinance 5526 and its successor ordinances. NOW THEREFORE THE CITY COUNCIL OF THE CITY OF PALO ALTO RESOLVES AS FOLLOWS: 108_202404v_ts24 1 Item 10: Staff Report Pg. 3 Packet Pg. 75 of 281 Item 10 Attachments - *NOT YET ADOPTED* Resolution Continuing the l.jnterim Parklet Program SECTION 1. Findings and Declarations. The Council hereby adopts the above Recitals as findings of the Council. SECTION 2. Pilot Parklet Program and Design Requirements. The City Council hereby approves the temporary use of on -street parking spaces in Palo Alto for parklets under the Pilot Parklet Demonstration Program as first described Resolution 9909 and continued by its successor resolutions. A. The Director of Public Works/City Engineer, or his or her designee (the "Director"), is delegated the authority to exercise their discretion to approve specific parklet locations, plans, designs, materials, and standards, and amendments thereto. The plans and designs shall be signed by the Director. Any existing parklet locations, plans, designs, materials, standards, and amendments to the Parklet Standards and Requirements approved by the Director under the authority of Resolution 9909 and/or its successors shall remain valid under the authority of this Resolution unless otherwise amended, rescinded, or modified in any other way. B. The Director is authorized to issue implementing guidelines and regulations for the Pilot Parklet Demonstration Program, and to approve amendments to the Parklet Standards and Requirements as the Director in his or her discretion deems necessary and proper. Any existing guidelines, regulations, or amendments issued by the Director under the authority of Resolution 9909 and/or its successors shall remain valid under the authority of this Resolution unless otherwise amended, rescinded, or modified in any other way. C. A valid encroachment permit issued under Palo Alto Municipal Code Section 12.12.010 is required to operate a parklet under this Program. The Director may approve a parklet application through issuance of an Encroachment Permit, subject to the general regulations in Palo Alto Municipal Code Section 12.12.010 and the following criteria and procedures: 1. Use. Parklets shall be restricted to outdoor eating areas of eating establishments. 2. Application and Review. A complete application for a parklet encroachment permit shall be reviewed by City staff for a determination as to whether such application complies with the Parklet Standards and Requirements. The application shall include all information necessary for a determination on the application including, but not limited to a certificate of insurance and a hold 108_20240417_ts24 2 Item 10: Staff Report Pg. 4 Packet Pg. 76 of 281 Item 10 Attachments A - *NOT YET ADOPTED* Resolution Continuing the l.jnterim Parklet Program harmless and indemnity agreement in favor of the City shall be submitted in accordance with the provisions of Palo Alto Municipal Code Section 12.08.120. The Director shall grant or deny the application. 3. Conditions. Conditions of approval may be imposed on parklet encroachment permits to maintain the public health, safety and welfare. 4. Revocation. The Director may revoke a parklet encroachment permit if he or she determines that the conditions of the permit, the provisions of this Resolution, or any applicable regulation, ordinance, or provision of the Municipal Code are being violated, or if the municipal use of the area is required for reasons of public health, safety, welfare or convenience. The permittee shall be notified of an intent to revoke the permit and shall be entitled to a hearing before the Director whose decision shall be final. 5. Existing Permits. Any parklet encroachment permit issued under the authority of Resolution 9909 and/or its successors shall remain valid under the authority of this Resolution unless such a permit is otherwise amended, revoked, or modified in any other way. SECTION 3. Rules and Regulations. In addition to the authority given to the Director of Public Works and his or her designee in Section 2 of this Resolution, the City Manager is authorized to enact any rule or regulation or implementing guidelines to effectuate and implement this Resolution. SECTION 4. Compliance with Other Regulations, Orders and Approvals. The uses of public and private property allowed in this Resolution shall be conducted in compliance with any applicable state or county mandate (including executive orders and health orders), and all other local, county, and state regulations, orders, and approvals, as applicable (collectively, "Applicable Law"). Any approval, allowance or permit to conduct such temporary outdoor use(s) shall be subject to revocation by the issuing City official if the use is conducted in violation of Applicable Law, or poses a threat to public health, safety or welfare. SECTION 5. No Vested Rights. The uses allowed in this Resolution are temporary and shall be terminated upon the earlier of the date stated in the applicable permit/approval or the expiration of this Resolution, unless earlier revoked by the City Manager or other authorized official (or their designee) or terminated by action of the City Council. The City may discontinue one or more, or all, of the allowed uses at any time if the City Manager or designee determines that the public health, safety or welfare warrant such action. Nothing in this Resolution shall establish a vested right. 108_202404v_ts24 3 Item 10: Staff Report Pg. 5 Packet Pg. 77 of 281 *NOT YET ADOPTED* Item 10 Attachment A - Resolution Continuing the l.jnterim Parklet Program SECTION 6. The Council finds that this Resolution is categorically exempt from CEQA under CEQA Guidelines Sections 15301 (existing facilities) and 15304(e) (minor temporary use of land having negligible or no permanent effects on the environment). SECTION 7. This Resolution supersedes Resolution 10106. Any conflict between this Resolution and Resolution 10106 shall be resolved in favor of this Resolution. SECTION 8. This Resolution shall become effective immediately upon approval and shall remain in effect until July 31, 2024 unless otherwise modified, repealed or extended by the City Council. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED AS TO FORM: Assistant City Attorney Mayor APPROVED: City Manager Director of Public Works Director of Planning and Development Services 108_202404v_ts24 4 Item 10: Staff Report Pg. 6 Packet Pg. 78 of 281 Item 11 Item 11 Staff Report City Council Staff Report From: City Manager CITY O F Report Type: CONSENT CALENDAR PALO Lead Department: Planning and Development Services ALTO Meeting Date: May 6, 2024 Report #:2404-2874 TITLE LEGISLATIVE: Adoption of an Ordinance Updating Chapter 18.15 (Density Bonus) of Title 18 (Zoning) to Reflect Recent Changes in State Density Bonus Law and Revising Regulations for Provision of On -Site Affordable Rental Units Under the City's Inclusionary Housing Ordinance; Recommended by the Planning and Transportation Commission March 13, 2024. CEQA Status: Exempt under CEQA Guidelines Section 15061(b)(3). RECOMMENDATION Staff recommends the City Council adopt the attached ordinance (Attachment A) updating Palo Alto's Density Bonus regulations in accordance with recent changes in state law and revising regulations regarding the provision of on -site affordable rental units. BACKGROUND Chapter 18.15 of the Palo Alto Municipal Code outlines the City's Residential Density Bonus program. This Chapter was enacted to comply with the state density bonus law, California Government Code Section 65915. California's density bonus law requires local governments to provide housing developers with density bonuses and other concessions or incentives when the developers agree to provide a certain percentage of affordable housing. This state law requires compliance by local governments, even in the absence of local ordinances providing state mandated bonuses, concessions, or incentives. A local ordinance, however, can provide clarity to developers and the public regarding the interaction of state density bonus law with other aspects of local zoning regulations. Palo Alto first adopted its Density Bonus ordinance (PAMC Chapter 18.15) in 2014. Since that time, the City has periodically updated the code in response to changes in state law, most recently in 2021. Since that time, a variety of bills have made minor changes to state law, including SB 728 (2021), and AB 2334 (2022). More recently, AB 323 (2023) made a major revision, adding an "additional" density bonus that allows a developer to achieve up to a 100% density bonus over the base provided in Title 18 or the Comprehensive Plan. In 2017, the City also recodified and updated its inclusionary housing ordinance in PAMC Item 11: Staff Report Pg. 1 Packet Pg. 79 of 281 Item 11 Item 11 Staff Report Chapter 16.65. In accordance with that effort, the City Council also set housing impact fees, housing in -lieu fees, and defined the on -site affordability alternative for rental housing projects (Ordinance No. 5409). Although the on -site affordability option has not been used in years past, as rental housing developers could simply pay an impact fee, it is likely to become more relevant as developers seek to utilize state density bonus law, which requires provision of on - site affordable units. Planning and Transportation Commission Review On March 13, 2024, the Planning and Transportation Commission recommended, on a 7-0 vote, that the City Council adopt the proposed ordinance with minor edits, including: (1) Delete the menu of concessions, (2) Include the clarification or change to affordable housing requirement that it be low income in Section 3 of the ordinance, and (3) correction of typos and clarification of non -substantive issues. Links to the staff report and video are provided below., Commission correspondence is published on the PTC webpage.z There was one public speaker to the item, who mentioned a specific pending project which was not on the agenda. This item implements Program 3.8 of the City's adopted 2023-2031 Housing Element, which directs staff to ensure that the zoning code remains consistent with state law. As an action implementing prior Council direction, adoption of this ordinance has been placed on the consent calendar. ANALYSIS Regardless of whether the City acts to amend its ordinances, the changes to state law will dictate the City's actions when reviewing a state density bonus project. The state law is written to supersede any conflicting local ordinances. Amending the City's Zoning Code will provide clarity to the public about the current laws applicable in the City. The following are changes made to Chapter 18.15, Density Bonus: 1. Applicability. These amendments clarify that projects in a Planned Community Zone or subject to a development agreement are not eligible for density bonus and that the use of state density bonus law might render a project ineligible for local incentives like the Housing Incentive Program (HIP) or the recently adopted El Camino Focus Area standards. 1 Link to PTC report: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/agendas- minutes/planning-and-transportation-commission/2024/ptc-3.13-density-bonus.pdf Link to video of March 13, 2024 PTC meeting: https://midpenmedia.org/planning-and-transportation-commission- 2-3132024/ 2 Link to staff correspondence with PTC members: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas- minutes-reports/agendas-minutes/planning-and-transportation-commission/2024/ptc-3.13-commission- communications.pdf Item 11: Staff Report Pg. 2 Packet Pg. 80 of 281 Item 11 Item 11 Staff Report 2. Definitions. These amendments are primarily to include new and amended definitions in state law. Most notable among these is the updated definition of "base density" or "maximum allowable residential density," which now provides explicit direction on how to apply density bonus to zones that do not provide a maximum number of dwelling units per acre. In the past, Palo Alto had very few areas that did not regulate maximum du/acre, but rezonings under the 2023-2031 Housing Element have increased the number of sites where this may apply. In addition, following the PTC review, staff's attention was drawn to an outdated requirement in the City's ordinance with respect to qualifying development. The existing definition of "development" requires that a project provide five or more "additional" or net -new units. The current requirement in state law is simply that a project include "five or more residential units." A net increase in units is only expressly required when the project is the substantial rehabilitation of an existing multifamily dwelling. Accordingly, the proposed ordinance removes the requirement for project to provide additional units, except in the limited circumstance specified in state law. 3. Size of bonus and number of concessions. The ordinance includes minor adjustments regarding the amount of density bonus and number of concessions granted in certain situations, in accordance with changes in state law. 4. Additional density bonus. The ordinance adds provisions regarding the "additional density bonus" authorized by AB 323. 5. Updated provision on incentives and concessions. Updated regulations on the use of incentives and concessions and, in accordance with the PTC recommendation, deleted the pre - approved "menu" of incentives and concessions. This menu was not used by developers. Recent caselaw on density bonus has also led developers to utilize incentives, concessions, and waiver much more aggressively, such that they are unlikely to consult a menu of pre -approved options. In addition to updates to Chapter 18.15, the ordinance also amends the City's on -site alternative for rental housing projects. These requirements are not codified. Potentially as a result of error, the regulations adopted by the Council in 2017 are too permissive, as they allow a rental housing developer to provide 15% of units at rates affordable to moderate income households. Recent experience has shown that this level of affordability can be fairly close to market rate in some situations. Staff proposes to revise this requirement to be 15% of units at rates affordable to lower income households, which is more typical. This update also includes an option for developers to provide units affordable to very low income households, drawing from the ratios used in state density bonus law. Following the PTC review, staff updated the proposed requirement for very low income units from 8% to 9%, which also aligns with both state density bonus law and Council's direction in the Planned Home Zoning (PHZ) program. Item 11: Staff Report Pg. 3 Packet Pg. 81 of 281 Item 11 Item 11 Staff Report FISCAL/RESOURCE IMPACT There is no fiscal impact associated with this action. STAKEHOLDER ENGAGEMENT The Planning and Transportation Commission meeting was the opportunity for the public to comment on the proposed ordinance. ENVIRONMENTAL REVIEW The adoption of this ordinance is not a project subject to the California Environmental Quality Act, under CEQA Guidelines Section 15061(b)(3), because it can be seen with certainty that adoption of the ordinance will not have a significant impact on the environment. ATTACHMENTS Attachment A: Draft Ordinance Amending PAMC Chapter 18.15 and Updating Rental Alternative Regulations APPROVED BY: Jonathan Lait, Planning and Development Services Director Item 11: Staff Report Pg. 4 Packet Pg. 82 of 281 *NOT YET APPROVED* Ordinance No. Item 11 Attachment A - Draft Ordinance Amending PAMC Chapter 18.15 and Updating Rental ,-Alternative Regulations_) Ordinance of the Council of the City of Palo Alto Amending Chapter 18.15 (Density Bonus) of Title 18 (Zoning) of the Palo Alto Municipal Code to Incorporate Changes in State Density Bonus Law and Revising SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A. On October 11, 2023, the Governor approved AB 1287, which substantially revised the provisions of State Density Bonus law (Government Code Section 65915), which requires a city to provide a developer that proposes a housing development within the jurisdictional boundaries of that city with a density bonus and other incentives or concessions for the production of lower income housing units, or for the donation of land within the development, if the developer agrees to construct a specified percentage of units for very low income, low-income, or moderate -income households or qualifying residents and meets other requirements. B. In 2023 and previous years, the Governor has approved additional revisions to State Density Bonus Law, including AB 323, SB 713, AB 682, AB 2334, SB 290, and SB 728. C. The City Council is therefore updating Chapter 18.15 (Density Bonus) of Title 18 (Zoning) of the Palo Alto Municipal Code to incorporate these revisions in state law. SECTION 2. Chapter 18.15 (Density Bonus) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows [additions are underlined and deletions struck _through] 18.15.010 Purpose and Applicability {The purpose of this chapter is to: (a1) Comply with the state density bonus law under California Government Code .9 Section 65915. To the extent this chapter conflicts with California Government Code Section 65915. the provisions of Section 65915 shall prevail. (b2) Establish procedures for implementing state density bonus requirements as set forth in California Government Code Section 65915, as amended. (E3) Facilitate the development of affordable housing consistent with the goals, objectives, and policies of the City's Comprehensive Plan Housing Element. (b) This chapter applies to all development applications, as defined herein, except: (1) Developments proposed in conjunction with a rezoning to the Planned Community zone district, which shall be entitled to densities and specific development plans 1 0160139_20240416_ay16 Item 11: Staff Report Pg. 5 Packet Pg. 83 of 281 Item 11 Attachment A - Draft *NOT YET APPROVED* Ordinance Amending PAMC Chapter 18.15 and approved as part of the rezoning and shall not be entitled to a den Updating Rental ion to the units entitled by the rezone. Alternative Regulations (2) Developments proposed in conjunction with a development agreement, pursuant to Government Code section 65864-65869.5, where the development agreement specifies the densities and/or development standards permitted thereunder. (c) Utilization of the benefits afforded by this chapter will preclude an applicant from taking advantage of some local alternatives to state density bonus law, such as the Housing Incentive Program or El Camino Real Focus Area standards set forth in Chapter 18.14. 18.15.020 Definitions Whenever the following terms are used in this chapter, they shall have the meaning established by this section. To the extent these terms are defined in California Government Code Section 65915, the definitions provided therein shall govern and the following definitions are provided for convenience only: (a) "Affordable rent" means monthly rent, including a reasonable allowance for utilities and all fees for housing services, for rental restricted affordable units reserved for very low or lower income households, as further defined in the California Health and Safety Code Section 50053. that dots not e ed the following: �A�PR�1 . . 39T iTti7:S�.TiI .RRS7T.! . 0 pressumcd hhouusseho�Tze, multiplied by 30% and divided by 12 (b) "Affordable sales price" means the maximum sales price at which very low, lower and moderate income households can qualify for the purchase of restricted affordable units as set forth in the City of Palo Alto's Below Market Rate Housing Program. The sales price shall be considered affordable only if it is based on a reasonable down payment, and monthly housing payments (including interest, principal, mortgage insurance, property taxes and assessments, fire and casualty insurance, homeowners association fees, property maintenance and repairs, and a reasonable allowance for utilities), all as determined by the city, that are equal to or less than the monthly housing costs provided in Health and Safety Code Section 50052.5= (i) Very low income: 0 of the area median income for Santa Clara County, adjusted for presumed household size, multiplied by 3O% and divided by 12. ���lT � • . �'J�T iTt�:EZTiI .i1RS7T. Iii - 2 0160139_20240416_ay16 Item 11: Staff Report Pg. 6 Packet Pg. 84 of 281 *NOT YET APPROVED* Item 11 Attachment A - Draft Ordinance Amending PAMC Chapter 18.15 and (c) "Applicant" means any person, firm, partnership, association, joint Updating Rental lion, or any entity or combination of entities who seeks development permits Alternative Regulations the City of Palo Alto. (d) "Approval authority" means the person or body that is authorized to approve a development as specified in the City of Palo Alto Municipal Code. Approval Authority shall also Transportation Commiion. (e) "Below market rate housing program" means Chapter 38.14 16.65 of the Palo Alto Municipal Code and the Administrative Guidelines adopted thereunder f the -helev, marl-^+ (f) "Child care facility" means a child day care facility other than a family day care home, including, but not limited to, infant centers, preschools, extended day care facilities, and school age child care centers. (g) "Concession or incentive" as used interchangeably means such regulatory concessions as specified in Government Code Section 65915(k) to include: (+) f) A reduction of site development standards or architectural design requirements which exceed the minimum applicable building standards approved by the State Building Standards Commission pursuant to Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a reduction in setback, coverage, and/or parking requirements which result in identifiable, financially sufR and actual cost reductions; 4 f ) Allowing mixed use development in conjunction with the proposed residential development, if nonresidential land uses will reduce the cost of the residential project and the nonresidential land uses are compatible with the residential project and existing or planned development in the area where the development will be located; and 4144 j Other regulatory concessions proposed by the applicant or the city which result in identifiable financially sufficicnt, and actual cost reductions. (h) "Density bonus" means a density increase, granted pursuant to Government Code Section 65915 and this ordinance, over the otherwise maximum allowable gross residential density as of the date of application grantcd pursuant to Govcrnmcnt Ced^ Sccti„n 65915 and this ordinancc, or, if elected by the applicant, a lesser percentage of density increase, including, but not limited to, no increase in density. (i) "Density bonus units" means those dwelling units granted pursuant to the provisions of this chapter which exceed the otherwise maximum allowable gross residential density for the development site." (j) "Development" means all developments pursuant to a single application dal to construct or place five (5) or more additionaldwelling units on a lot or contiguous lots including, without limitation, a planned unit development, site plan, subdivision,— conversion 3 0160139_20240416_ay16 Item 11: Staff Report Pg. 7 Packet Pg. 85 of 281 *NOT YET APPROVED* of a non-residential building to dwelling un residential units. or substantial rehabili Item 11 Attachment A - Draft Ordinance Amending PAMC Chapter 18.15 and Updating Rental in Alternative Regulations .j (k) "Development standard" means a site or construction condition, other than a control on maximum density, such as a height limitation, a setback, e a floor -area ratio, an onsite open - space requirement, a minimum lot area per unit requirement, or a parking ratio that applies to a development pursuant to any ordinance, general plan element, specific plan, charter, or other city condition, law, policy, resolution, or regulation, including regulations enacted by the electorate exercising the local initiative or referendum power. In zones lacking a dwelling -units - per -acre standard, Floor Area Ratio or FAR acts as a limitation on density and is therefore not considered a development standard subject to waiver, incentive, or concession. A "sited construction condition" is a dcvclopmcnt rcgulation or law that spccifics thc physical dcvelopme It of a site and buildings onrthc si•cc in a ev^clopmcnt. (I) "Discretionary permit" means any permit issued for the development which requires the exercise of judgment or deliberation from the Approval Authority, including but not limited to conditional use permits, variances, site plans, design review, planned development permits, general and specific plan approvals and amendments, zoning amendments, and tentative and parcel maps. (m) "Lower, very low, or moderate income" means annual income of a household that does not exceed the maximum income limits for the income category, as adjusted for household size, applicable to Santa Clara County, as published and periodically updated by the State Department of Housing and Community Development pursuant to Sections 50079.5, 50105, or 50093 of the California Health and Safety Code. (n) "Lower income student" means a student who has a household income and asset level that does not exceed the level for Cal Grant A or Cal Grant B award recipients as set forth in Section 69432.7(k) of the Education Code. The eligibility of a unit for lower income students under this section shall be verified by an affidavit, award letter, or letter of eligibility provided by the institution of higher education in which the student is enrolled or by the California Student Aid Commission that the student receives or is eligible for financial aid, including an institutional grant or fee waiver from the college or university, the California Student Aid Commission, or the federal government. o) "Maior transit stoo" has the same meaning as defined in subdivision (b) of Section 21155 of the California Public Resources Code. 1) "Located within one-half mile of a major transit stow" means that any point on a proposed development is within one-half mile of any point on the property on which a major transit stop is located, including any parking lot owned by the transit authority or other local agency operating the major transit stop. (e —p) "Maximum allowable residential density" or "base density" means the maximum greatest number of dwelling units permitted in the development by the city's Comprehensive 0160139_20240416_ay16 j1 Item 11: Staff Report Pg. 8 Packet Pg. 86 of 281 Item 11 Attachment A - Draft *NOT YET APPROVED* Ordinance Amending PAMC Chapter 18.15 and Plan Land Use Element, a specific plan, an area plan, or -a -n4 Zoning Ord Updating Rental of application, excluding the provisions of this chapter. If a range of dens,Alternative Regulations the greatest number of units allowed by the specific zoning range, specific plan, or Comprehensive Plan Land Use Element shall apply. If the maximum d n ity allowed by the zoning ~,hare is inconsistcnt with thc dcnsity allowcd by thc land uc cicmcnt of thc city's Comprchcnivc Plan, the land use cicm^nt density shall prevail. However, if the applicable zoning ordinance, specific plan, or land use element does not provide a dwelling -units -per -acre standard for density, then the maximum allowable residential density shall be calculated by: (1) Estimating the realistic development capacity of the site based on the objective development standards applicable to the project, including, but not limited to, floor area ratio, site coverage, maximum building height and number of stories, building setbacks and stepbacks, public and private open -space requirements, minimum percentage or square footage of any nonresidential component, and parking requirements, unless not required for the base project. Parking requirements shall include considerations regarding number of spaces, location, design, type, and circulation. A developer may provide a base density study and the local agency shall accept it, provided that it includes all applicable objective development standards. (2) Maintaining the same average unit size and other project details relevant to the base density study, excepting those that may be modified by waiver or concession to accommodate the bonus units, in the proposed project as in the study. (en) "Non -restricted unit" means all dwelling units within a development excluding the restricted affordable units. (p -r) "Qualifying mobilehome park" means a mobilehome park that limits residency based on age requirements for housing older persons pursuant to Section 798.76 and 799.5 of the Civil Code. (q -s) "Qualifying resident" means senior citizens or other persons eligible to reside in a senior citizen housing development or qualifying mobilehome park. (c -t) "Regulatory agreement" means a recorded and legally binding agreement between an applicant and the city to ensure that the requirements of this chapter are satisfied. The regulatory agreement, among other things, shall establish: the number of restricted affordable units, their size, location, terms and conditions of affordability, and production schedule. (s -u) "Replace" means either of the following: (1 1) If any dwelling units described in Section 18.15.030(i) are occupied on the date that the application is submitted to the City, the proposed housing development shall provide at least the same number of units of equivalent size to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those households in occupancy. For unoccupied dwelling units described in Section 18.15.030(i) in a development with occupied units, the proposed housing development shall provide units of equivalent size or type, or 5 0160139_20240416_ay16 Item 11: Staff Report Pg. 9 Packet Pg. 87 of 281 Item 11 Attachment A - Draft *NOT YET APPROVED* I Ordinance Amending PAMC Chapter 18.15 and both, to be made available at affordable rent or affordable Updating Rental and occupied by, persons and families in the same or lower income Alternative Regulations last household in occupancyiA t c samc proportion of affordability s the occupicd units. If the income category of the (last) household in occupancy is not known, it shall be rebuttably presumed that lower income renter households occupied these units in the same proportion of lower income renter households to all renter households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Development's Comprehensive Housing Affordability Strategy database. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years. If the proposed development is for -sale units, the units replaced shall be subject to California Government Code Section 65915(c)(2). For purposes of this subsection (s) of Section 18.15.020, "equivalent size" means that the replacement units contain at least the same total number of bedrooms as the units being replaced. (++2) If all dwelling units described in Section 18.15.030(i) have been vacated or demolished within the five-year period preceding the application, the proposed housing development shall provide at least the same number of units of equivalent size, as existed at the highpoint of those units in the five-year period preceding the application to be made available at affordable rent or affordable housing cost to, and occupied by, persons and families in the same or lower income category as those persons and families in occupancy at that time, if known. If the incomes of the persons and families in occupancy at the highpoint is not known, it shall be rebuttably presumed that low- income and very low income renter households occupied these units in the same proportion of low-income and very low income renter households to all renter households within the jurisdiction, as determined by the most recently available data from the United States Department of Housing and Urban Development's Comprehensive Housing Affordability Strategy database., th„n ono half of the rcquir„rl + 11 ho made I blc fford hIo + o fford bl d units shall Kefl housing te��,cr occupicd by, very lo.., income persons and f,.,, I „s and ., half ,f +h., r rcd units Sal^11 be made available for rent at affordable housing costs to, and occupied by, low income persons and families. All replacement calculations resulting in fractional units shall be rounded up to the next whole number. If the replacement units will be rental dwelling units, these units shall be subject to a recorded affordability restriction for at least 55 years. If the proposed development is for -sale units, the units replaced shall be subject to California Government Code Section 65915(c)(2). (t -v) "Restricted affordable unit" means a dwelling unit within a development which will be available at an affordable rent or affordable sales price for sale or rent to very low, lower or moderate income households. (mow) "Senior citizen housing development" means a Development consistent with the California Fair Employment and Housing Act (Government Code Section 12900 et. seq., including 12955.9 in particular), which has been "designed to meet the physical and social 6 0160139_20240416_ay16 Item 11: Staff Report Pg. 10 Packet Pg. 88 of 281 Item 11 Attachment A - Draft *NOT YET APPROVED* I Ordinance Amending PAMC Chapter 18.15 and needs of senior citizens," and which otherwise qualifies as "housing for Updating Rental hat phrase is used in the federal Fair Housing Amendments Act of 198 Alternative Regulations and implementing regulations (24 CFR, part 100, subpart E), and as that phra e i these phrases are used in California Civil Code Sections 51.2L 51.3, and 51.12. (x)"Shared housing building" means a residential or mixed -use structure, with five or more shared housing units and one or more common kitchens and dining areas designed for permanent residence of more than 30 days by its tenants. The kitchens and dining areas within the shared housing building shall be able to adequately accommodate all residents. If a local ordinance further restricts the attributes of a shared housing building beyond the requirements established in this section. the local definition shall aaoly to the extent that it does not conflict with the requirements of this section. (y) "Total units" or "total dwelling units" means a calculation of the number of units that: (1) Excludes a unit added by a density bonus awarded pursuant to this section or any local law granting a greater density bonus. (2) Includes a unit designated to satisfy an inclusionary zoning requirement of a city, county, or city and county. For purposes of calculating a density bonus granted pursuant to this section for a shared housing building, "unit" means one shared housing unit and its pro rata share of associated common area facilities. (z) "Very low vehicle travel area" means an urbanized area, as designated by the United States Census Bureau, where the existing residential development generates vehicle miles traveled per capita that is below 85 percent of either regional vehicle miles traveled per capita or city vehicle miles traveled per capita. For purposes of this paragraph, "area" may include a travel analysis zone, hexagon, or grid. For the purposes of determining "regional vehicle miles traveled per capita" pursuant to this paragraph, a "region" is the entirety of incorporated and unincorporated areas governed by a multicounty or single -county metropolitan planning organization, or the entirety of the incorporated and unincorporated areas of an individual county that is not part of a metropolitan planning organization. 18.15.030 Density Bonuses This section describes the density bonuses that will be provided, at the request of an applicant, when that applicant provides restricted affordable units as described below. (a) The city shall grant a twenty percent (20%) density bonus when an applicant for a development of five (5) or more dwelling units seeks and agrees to construct at least any one of the following in accordance with the requirements of this Section and Government Code Section 65915: (L 1) A rental or for -sale development, including a shared housing building, that provides at At least ten percent (10%) of the total dwelling units of the dcvclop ent as restricted affordable units affordable to lower income households. Bctwccn ten and 7 0160139_20240416_ay16 Item 11: Staff Report Pg. 11 Packet Pg. 89 of 281 Item 11 Attachment A - Draft *NOT YET APPROVED* I Ordinance Amending PAMC Chapter 18.15 and tw^nty n ^n+ (10 20% f For each one percent (1%) increase Updating Rental of restricted lower income units up to twenty percent (20%) of total Alternative Regulations ent will receive an additional one and one-half percent (1.5%) density bonus up to thirty-five percent (35%) density bonus of the maximum r^sid^ntial density. For each one percent (1%) increase in the percentage of restricted lower income units exceeding twenty percent (20%) of total units, a development will receive an additional three and three- quarters percent (3.75%) density bonus up to fifty percent (50%) density bonusof the maximum s„d^^+i ,I d^^sit or (14 2) A rental or for -sale development, including a shared housing building, that provides at At least five percent (5%) of the total dwelling units of the development as restricted affordable units affordable to very low income households. Bctw^^^ five and eleven percent (5 11%), f For each one percent (1%) increase in the percentage of restricted very low income units up to eleven percent (11%) of total units, a development will receive an additional two and one-half percent (2.5%) density bonus up to thirty-five percent (35%) density bonusof the maximumsid^ntial density. For each one percent (1%) increase in the percentage of restricted very low income units exceeding eleven percent (11%) of total units, a development will receive an additional three and three-quarters percent (3.75%) density bonus up to fifty percent (50%) density bonusof thc maximum sid^ntial d^^sit or (l43) A senior citizen housing development; or (l4) A qualifying mobilehome park; or (v5) At least ten percent (10%) of the total dwelling units of the development for transitional foster youth, as defined in Section 66025.9 of the Education Code, disabled veterans, as defined in Section 18541 of the Government Code, or homeless persons, as defined in the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.). The units described in this subsection shall be subject to a recorded affordability restriction of 55 years and shall be provided at the same affordability level as very low income units. (b) The city shall grant a five percent (5%) density bonus when an applicant for a development of five (5) or more additional dwelling units seeks and agrees to construct a development, in accordance with the requirements of this Section and Government Code Section 65915, in which at least 10 percent (10%) of the total dwelling units of a housing development are sold to persons and families of low or moderate income households, provided that all dwelling units in the development are offered to the public for purchase. For each one percent (1%) increase in the percentage of restricted moderate income units between ten and forty percent (10-40%) of total units, a development will receive an additional one percent (1%) density bonus up to thirty-five percent (35%) density bonus of maximum rc id^^+ial dcnsity. For each one percent (1%) increase in the percentage of total dwelling units restricted for moderate income households exceeding forty percent (40%), a development will receive an additional three and three-quarters percent (3.75%) density bonus up to fifty percent (50%) of the maximum residential density. 8 0160139_20240416_ay16 Item 11: Staff Report Pg. 12 Packet Pg. 90 of 281 Item 11 Attachment A - Draft *NOT YET APPROVED* I Ordinance Amending PAMC Chapter 18.15 and (c) The city shall grant a thirty-five percent (35%) density bonus whd Updating Rental r a student housing development of five (5) or more additional dwelling unit Alternative Regulations s to construct in accordance with the requirements of this section and Government Code Section 65915: (i-1) At least twenty percent (20%) of the total dwelling units will be restricted and used for lower income students. (+-2) For purposes of calculating a density bonus granted pursuant to this subparagraph, the term "unit" as used in this subparagraph means one rental bed and its pro rata share of the associated common area facilities. The units described in this subparagraph shall be subject to an affordability restriction of 55 years. (+.i-3) All units will be used exclusively for undergraduate, graduate, or professional students enrolled full time at an institution of higher education accredited by the Western Association of Schools and Colleges or the Accrediting Commission for Community and Junior Colleges. (W-4) The applicant submits evidence that the applicant entered into an operating agreement or master lease with one or more institutions of higher education for the institution(s) to occupy all units of the student housing development with students from that institution(s). (-5) The rent provided in the applicable units of the development for lower income students shall be calculated at thirty percent (30%) of sixty-five percent (65%) of the area median income for Santa Clara County for a single -room occupancy unit type. (6) The applicant will provide priority for the applicable affordable units for lower income students experiencing homelessness. A homeless service provider, as defined in paragraph (3) of subdivision (e) of Section 103577 of the Health and Safety Code, or institution of higher education that has knowledge of a person's homeless status may verify a person's status as homeless for purposes of this subclause. (d) The city shall grant an eighty percent (80%) density bonus to a development if the following criteria apply: one hundred percent (100%) of all units in the development, including total units and density bonus units, but exclusive of manager's unit or units, are for lower income households, as defined by Section 50079.5 of the Health and Safety Code, except that twenty percent (20%) of the units in the development, including total units and density bonus units, may be for moderate -income households, as defined in Section 50053 of the Health and Safety Code. For rental units, rents shall be restricted as set forth in Government Code section 65915(c)(1)(B)(ii). The city will not impose any maximum controls on density if either of the following apply: (i-1) (ii), eighty r „nt (30%) f the ..,..I,,,.- of ,nits for Iowcr incomc hou hold The housing development is located in a very low vehicle travel area within a designated county. 9 0160139_20240416_ay16 Item 11: Staff Report Pg. 13 Packet Pg. 91 of 281 Item 11 A -raft *NOT YET APPROVED* dince me ding Ordinance Amending PAMC Chapter 18.15 and (+-2) If thc -The development is located within one-half mile of a Updating Rental city will not imposc any maximum controls on dcnsi+., Alternative Regulations (e) Whcn calculating thc numbcr of permitted density bonus units, any fractions of units shall be is the ncxt„ghestnumber Each component of any density calculation, including base density and bonus density. resultin2 in fractional units shall be separately rounded up to the next whole number. An applicant may elect to receive a density bonus that is less than the amount permitted by this section; however, the city shall not be required to similarly reduce the number of restricted affordable units required to be dedicated pursuant to this section and Government Code Section 65915(b). (f) Each development is entitled to only one density bonus, which shall be selected by the applicant based on the percentage of very low, low, or moderate -income restricted affordable units, lower income restricted affordable units, or moderate income restricted affordable units, or the development's status as a senior citizen housing development or qualifying mobilehome park, or the development's provision of restricted affordable units for transitional foster youth, disabled veterans, lower income students, or homeless persons. Density bonuses from more than one category may not be combined. Except as provided for in 18.15.030(d) and 18.15.035, in no case shall a development be entitled to a density bonus of more than fifty percent (50%). (g) The density bonus units shall not be included when determining the number of restricted affordable units required to qualify for a density bonus. When calculating the required number of restricted affordable units, any resulting decimal or fraction shall be rounded to the next larger integer. (h) Any restricted affordable unit provided pursuant to the city's below market rate housing program shall be included when determining the number of restricted affordable units required to qualify for a density bonus or other entitlement under this chapter. However, the payment of a housing impact or in lieu fee shall not qualify for a density bonus or other entitlement under this chapter. (i) An applicant (or project) shall be ineligible for a density bonus or any other incentives or concessions under this chapter if the housing development is proposed on any property that includes a parcel or parcels on which rental dwelling units are located or, if the dwelling units have been vacated or demolished in the five-year period preceding the application, have been subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; subject to any other form of rent or price control through the City's valid exercise of its police power; or occupied by lower or very low income households, unless the proposed housing development replaces those units, and either of the following applies: (f-1) The proposed housing development, inclusive of the units replaced pursuant to this paragraph, contains affordable units at the percentages set forth in Section 18.15.030. 10 0160139_20240416_ay16 Item 11: Staff Report Pg. 14 Packet Pg. 92 of 281 *NOT YET APPROVED* (+i-2) Each unit in the development, exclusive of a manager's unit to, and occupied by, either a lower or very low income household. Item 11 Attachment A - Draft Ordinance Amending PAMC Chapter 18.15 and Updating Rental ,,Alternative Regulations ble (j) Certain other types of development activities are specifically eligible for a density bonus pursuant to state law: (i-1) A development may be eligible for a density bonus in return for land donation pursuant to the requirements set forth in Government Code Section 65915(g). (+i-2) A condominium conversion may be eligible for a density bonus or concession pursuant to the requirements set forth in Government Code Section 65915.5. (+i-i-3) An applicant for a commercial development who has entered into an agreement for partnered housing may be eligible for a density bonus pursuant to the requirements set forth in Government Code Section 65915.7. (I —k) Notwithstanding any provision of this chapter, all developments must satisfy all applicable requirements of the city's Below Market Rate Housing Program in Chapter 16.65, which may impose requirements for restricted affordable units in addition to those required to receive a density bonus or concessions. (I) For sites where Title 18, a Specific Plan, or the Comprehensive Plan do not expressly prescribe a maximum number of dwelling units per acre and FAR therefore acts as the limitation on density, the base density shall be calculated by estimating the realistic development capacity, as described in Section 18.15.020(p). In such circumstances, the density bonus shall be granted as additional floor area in proportion to the number of bonus units proposed. The Director of Planning and Development Services may issue additional guidance on the aoalication of this section. Table 1 summarizes the density bonus provisions described in this Section. Table 1 Density Bonus Summary Table Restricted Minimum Percentage of Additional Percentage of Percentage of Affordable Percentage of Density Bonus Bonus for RAUs Required RAUs Required Units (RAUs) RAUs Granted Each 1% for 35% for Maximum or Category Increase in Density Bonus 50% Density RAUs Bonus Very Low 5% 20% 2.50% 11% 15% Income (3.75% bonus 11 0160139_20240416_ay16 Item 11: Staff Report Pg. 15 Packet Pg. 93 of 281 Item 11 Attachment A - Draft *NOT YET APPROVED* Ordinance Amending PAMC Chapter 18.15 and Updating Rental for increases Alternative Regulations above 11% RAU) Lower Income 10% 20% 1.50% 20% 24% (3.75% bonus for increases above 20% RAU) Moderate 10% 5% 1% 40% 44% Income (3.75% bonus for increases above 40% RAU) Lower Income 20% 35% ----- ----- ----- Student Housing Senior Citizen 100% 20% ------ ------ ------ Housing Qualifying 100% 20% ------ ------ ------ Mobile Park 100% 100% 80% (or no ----- ----- ----- Affordable maximum Units density) Note: A density bonus may be selected from only one category. 18.15.035 Additional Density Bonus a) Provided that the resulting housine development would not restrict more than 50 aercent of the total units to moderate -income, lower income, or very low income households, the city shall grant one additional density bonus calculated pursuant to paragraph (b) when an applicant proposes to construct a housing development that conforms to the requirements of section 18.15.030, agrees to include additional rental or for -sale units affordable to very low income households or moderate income households. and meets any of the following requirements: (1) The housing development conforms to Section 18.15.030(a)(1) and provides twenty- four percent (24%) of the total units for lower income households. 12 0160139_20240416_ay16 Item 11: Staff Report Pg. 16 Packet Pg. 94 of 281 Item 11 A -raft *NOT YET APPROVED* dince me ding Ordinance Amending PAMC Chapter 18.15 and (2) The housing development conforms to Section 18.15.030(a)(2)Updating Rental een percent (15%) of the total units for very low income households. Alternative Regulations (3) The housing development conforms to Section 18.15.030(b) and provides forty-four percent (44%) of the total units for moderate income households. b) The additional density bonus granted under this Section shall be calculated as follows: Table 2 Additional Density Bonus Percentage Very Low Percentage Density Percentage Moderate Percentage Density Income Units Bonus Income Units Bonus 5 20 5 20 6 23.75 6 22.5 7 27.5 7 25 8 31.25 8 27.5 9 35 9 30 10 38.75 10 32.5 11 35 12 38.75 13 42.5 14 46.25 15 50 18.15.040 Development Standards for Affordable Units (a) Restricted affordable units shall be constructed concurrently with non -restricted units unless both the city and the applicant agree within the regulatory agreement to an alternative schedule for development. (b) Moderate income restricted affordable units shall remain restricted and affordable to the designated income group for a minimum period of 55 years (or a longer period of time if required by the construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program). Very low and lower restricted affordable units shall remain restricted and affordable to the designated income group for a period of 55 years for both rental and for -sale units (or a longer period of time if required by a construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program). 13 0160139_20240416_ay16 Item 11: Staff Report Pg. 17 Packet Pg. 95 of 281 Item 11 Attachment A - Draft *NOT YET APPROVED* I Ordinance Amending PAMC Chapter 18.15 and (c) In determining the maximum affordable rent or affordable sale Updating Rental ted affordable units, the presumed household size as set forth in the city's' Regulations ate Housing Program shall be used, unless the development is subject to different assumptions imposed by other governmental regulations. (d) Restricted affordable units shall be built on -site and be dispersed within the development, except as permitted in the city's Below Market Rate Housing Program guidelines in subsection (e) of this s tion. The number of bedrooms of the restricted affordable units shall be equivalent to the bedroom mix of the non -restricted units in the development; except that the applicant may include a higher proportion of restricted affordable units with more bedrooms. The design, square footage, appearance and general quality of the restricted affordable units shall be compatible with the design of the non -restricted units in the development. The development shall comply with all applicable development standards, except those which may be modified as provided by this chapter. (e) A regulatory agreement, as described in Section 18.15.100, shall be made a condition of the discretionary permits for all developments pursuant to this chapter. The regulatory agreement shall be recorded as a restriction on the development. The regulatory agreement shall be consistent with the city's Below Market Rate Housing Program guidelines. 18.15.050 Development Concessions and Incentives This section includes provisions for providing concessions or incentives pursuant to Government Code Section 65915. (a) By right parking incentives. Upon request by the applicant, a development that is eligible for a density bonus may provide parking as provided in this subsection (a), consistent with Government Code Section 65915(p), inclusive of parking for persons with a disability and guests: (1) Zero to one bedroom unit: one on -site parking space; (4-2) Two to three bedroom unit: one and one-half on -site parking spaces; (++1-3) Four or more bedroom unit: two and one-half parking spaces. If the total number of spaces required results in a fractional number, it shall be rounded up to the next whole number. For purposes of this subsection, this parking may be provided through tandem parking or uncovered parking, but not through on -street parking. (b) Additional parking incentives for transit oriented project. (I-1) For purposes of this subdivision, a development shall have unobstructed access to a major transit stop if a resident is able to access the major transit stop without encountering natural or constructed impediments. For purposes of this subdivision, "natural or constructed impediments" includes, but is not limited to, freeways, rivers, mountains, and bodies of water, but does not include residential structures, shopping centers, parking lots, or rails used for transit. 14 0160139_20240416_ay16 Item 11: Staff Report Pg. 18 Packet Pg. 96 of 281 Item 11 Attachment A - Draft *NOT YET APPROVED* I Ordinance Amending PAMC Chapter 18.15 and (A) Notwithstanding subdivision (a) above, if a developrr Updating Rental ast twenty percent (20%) of low-income or at least eleven perc Alternative Regulations low income units provided for in section 18.15.030(a)(i-1) or (.i-2), or at least forty percent (40%) moderate -income units provided for in section 18.15.030(b), and is located within one-half mile of a major transit stop, as defined in subdivision (o) of Section 65915 of the Government Code, and there is unobstructed access to the major transit stop from the development, then, upon request of the applicant, the city shall not impose a vehicular parking ratio, inclusive of parking for persons with a disability and guests, that exceeds 0.5 spaces per unit. (i-2) Notwithstanding subdivision (a) above, if a development consists solely of rental units, exclusive of a manager's unit, with an affordable housing cost to lower income families, as provided in Section 50052.5 of the Health and Safety Code, then, upon the request of the applicant, the city shall not impose vehicular parking standards if the development meets one of the following criteria: (A) The development is located within one-half mile of a major transit stop, as defined in subdivision (o) of Section 65915 of the Government Code, and there is unobstructed access to the major transit stop from the development, the ratio shall not exceed 0.5 spaces per unit. (B) The development is a for -rent housing development for individuals who are 62 years of age or older that complies with Sections 51.2 and 51.3 of the Civil Code, and the development has either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day. (C) The development is either a special needs housing development, as defined in Section 51312 of the Health and Safety Code, or a supportive housing development, as defined in Section 50675.14 of the Health and Safety Code. A development that is a special needs housing development must have either paratransit service or unobstructed access, within one-half mile, to fixed bus route service that operates at least eight times per day. (44-3) Notwithstanding paragraphs (b)(i), (b)(ii)(A), and (b)(ii)(B), the city may impose a higher vehicular parking ratio not to exceed the ratio described in subdivision (a) if the city has conducted an area wide or citywide parking study in compliance with Government Code Section 65915(p)(8). (c) Other incentives and concessions. A development is eligible for other concessions or incentives as follows: (i-1) One concession or incentive for a development that makes at least ten percent (10%) of the total dwelling units affordable to lower income households; or at least five percent (5%) of the total dwelling units affordable to very low income households; or at least ten percent (10%) of the total dwelling units affordable to moderate income 15 0160139_20240416_ay16 Item 11: Staff Report Pg. 19 Packet Pg. 97 of 281 *NOT YET APPROVED* households in a development in which the units are for sale; or a (20%) of the total units in a student housing development for lo, provided for in 18.15.030(c). Item 11 Attachment A - Draft Ordinance Amending PAMC Chapter 18.15 and Updating Rental ent Alternative Regulations as (+-2) Two concessions or incentives for a development that makes at least seventeen percent (17%) of the total dwelling units affordable to lower income households; or at least ten percent (10%) of the total dwelling units affordable to very low income households; or at least twenty percent (20%) of the total dwelling units affordable to moderate income households in a development in which the units are for sale. (+i3) Three concessions or incentives for a development that makes at least twenty- four percent (24%) of the total dwelling units affordable to lower income households; or at least fifteen percent (15%) of the total dwelling units affordable to very low income households, or at least thirty percent (30%) of the total dwelling units affordable to moderate income households in a development in which the units are for sale. (4) Four incentives or concessions for least 16 percent (16%) of the units for very low income households or at least 45 percent (45%) for persons and families of moderate income in a development in which the units are for sale. (-5) Four —Five concessions or incentives for a development that provides one hundred percent (100%) of the total units, exclusive of a manager's unit or units, are for lower income households, as described in Section 18.15.030, subdivision (d). If the project is located within one-half mile of a major transit stop or is located in a very low vehicle travel area in a designated county, theme development may additionally receive a height increase of three stories or thirty-three (33) feet. Table -3 summarizes the provisions of Concessions or Incentives described in subsection (a). Table 3 -2 Concessions and Incentives Summary Table Target Group Restricted Affordable Units Very Low Income 5% 10% 15% 16% --- Lower Income 10% 17% 24% --- 100% Moderate Income (Applicable to For -Sale Units Only) 10% 20% 30% 45% --- Lower Income Student Housing 20% Maximum Incentive(s)/Concession(s) 1 2 3 4 5 16 0160139_20240416_ay16 Item 11: Staff Report Pg. 20 Packet Pg. 98 of 281 *NOT YET APPROVED* Notes: Item 11 Attachment A - Draft Ordinance Amending PAMC Chapter 18.15 and Updating Rental Alternative Regulations 1. Concessions or incentives may be selected from only one category (very low, lower, moderate, low income student development) 2. No concessions or incentives are available for land donation, or for senior citizen housing developments and qualifying mobilehome parks that do not contain restricted affordable units. 3. In a student development, a "unit" is defined according to 18.15.0: (c)(ii). .��. �� .. r•a (vi) Up to fifty perccnt (50%) to the squarc feetage of the restricted affordablc units, whichever is Ie6-s (d) The city shall not require, as a condition of granting a concession or incentive the preparation of an additional report or study that is not otherwise required by state law. The 17 016013920240416ay16 Item 11: Staff Report Pg. 21 Packet Pg. 99 of 281 Item 11 *NOT YET APPROVED* Attachment Orddinananncece Amending PAMC Chapter 18.15 and city may, however, request reasonable documentation to demonstrate I Updating Rental � or concession meets the definition set forth in Section 18.15.020. Alternative Regulations (g- Nothing in this chapter shall be construed to require the provision of direct financial concessions for the development, including the provision of publicly owned land by the city or the waiver of fees or dedication requirements. 18.15.060 Waiver/Modification of Development Standards An applicant may apply for a -the waiver or modification of development standards that will have the effect of physically precluding the construction of a development at the densities or with the concessions or incentives permitted by this chapter. The l deve�operm must p rmitted by this chapter. A development that receives a waiver from any maximum controls on density pursuant to Section 18.15.03 (d)(1) and (d)(2) shall not be eligible for waivers or modifications to development standards pursuant to this Section. (b) For sites on which floor area acts as the limitation on density, additional floor area shall be permitted to accommodate bonus units proposed, as set forth in Section 18.15.030(l), and no additional waiver of floor area is permitted. 18.15.070 Child Care Facilities (a) When an applicant proposes to construct a development that is eligible for a density bonus under Section 18.15.030 and includes a child care facility that will be located on the premises of, as part of, or adjacent to, the development, the city shall grant either: (i-1) An additional density bonus that is an amount of square feet of residential space that is equal to or greater than the square footage of the child care facility; or (-i---2) An additional concession or incentive that contributes significantly to the economic feasibility of the construction of the child care facility. (b) The city shall require, as a condition of approving the development, that the following occur: (i-1) The child care facility shall remain in operation for a period of time that is as long as or longer than the period of time during which the restricted affordable units are required to remain affordable pursuant to Section 18.15.040. In the event the childcare operations cease to exist, the Director of Planning and Development Services may approve an alternative community service use for the child care facility. (+-2) Of the children who attend the child care facility, the children of very low, lower and moderate income households shall equal a percentage that is equal to or greater than the percentage of restricted affordable units in the development that are required for very low, lower and moderate income households pursuant to Section 3.15.030. 18 0160139_20240416_ay16 Item 11: Staff Report Pg. 22 Packet Pg. 100 of 281 Item 11 *NOT YET APPROVED* Attachment Orddinananncece Amending PAMC Chapter 18.15 and (c) Notwithstanding subsections (a) and (b) above, the city shall not be Updating Rental e a density bonus or a concession or incentive for a child care facility if Alternative Regulations pon substantial evidence, that the community has adequate child care facilities. 18.15.080 Application Requirements An Application for a density bonus, incentive, concession, waiver, modification or revised parking standard shall be made as follows: (a) All applications for a density bonus, incentive, concession, waiver, modification or revised parking standard shall be submitted with the first application for a discretionary permit for a development and shall be processed concurrently with those discretionary permits. The application shall be on a form prescribed by the city and shall include the following information: (i-1) A brief description of the proposed development, including the total number of dwelling units, restricted affordable units, and density bonus units proposed. (+i-2) The zoning and comprehensive plan designations and assessor's parcel number(s) of the project site, and a description of any density bonus, concession or incentive, waiver or modification, or revised parking standard requested (+i-i--3) A vicinity map and preliminary site plan, drawn to scale, including building footprints, driveway and parking layout. (-4) Site plan showing location of market -rate units, restricted affordable units, and density bonus units within the proposed development; (v-5) Level of affordability of the restricted affordable units and proposed method to ensure affordability; (b (r,\ If a concession or incentive is requested, the following information must be included in the -, plic3tion• (i) A a brief explanation as to the actual cost reduction achieved through the concession or incentive. _.iiv.it Iifl.1L - - - -- - - - 19 0160139_20240416_ay16 Item 11: Staff Report Pg. 23 Packet Pg. 101 of 281 Item 11 *NOT YET APPROVED* Attachment Orddinananncece Amending PAMC Chapter 18.15 and -e (7) If a waiver or modification of development standards is reqd Updating Rental information must be cl� idcd in the application: Alternative Regulations A a brief explanation of why the development standard would physically preclude the construction of the development with the density bonus, incentives, and concessions requested. (ii) Evidcncc that thc dcvclopmcnt standard for which thc waivcr is rcqucstcd will havc thc cffcct of physically prccluding thc construction of thc dcvclopmcnt with thc dcnsity bonus and concessions r stcd. (d -b) If a density bonus or concession is requested for a land donation, the application shall show the location of the land to be dedicated, provide proof of site control, and provide evidence that all of the requirements and each of the findings included in Government Code Section 65915(g) can be made; (e -c) If a density bonus or concession is requested for a child care facility, the application shall show the location and square footage of the child care facilities and provide evidence that all of the requirements and each of the findings included in Government Code Section 65915(h) can be made. (f —d) If a density bonus or concession is requested for a condominium conversion, the applicant shall provide evidence that all of the requirements found in Government Code Section 65915.5 can be met. (g -e) In accordance with state law, neither the granting of a concession, incentive, waiver, modification, or revised parking standard, nor the granting of a density bonus, shall be interpreted, in and of itself, to require a general plan amendment, zoning change, variance, or other discretionary approval. 18.15.090 Review Procedures An application for a density bonus, incentive, concession, waiver, modification or revised parking standard shall be acted upon by the Approval Authority concurrently with the application for the first Discretionary permit. The granting of a density bonus shall not be deemed approval of the entire Project or approval of any subsequent discretionary permit. 20 0160139_20240416_ay16 Item 11: Staff Report Pg. 24 Packet Pg. 102 of 281 Item 11 A -raft *NOT YET APPROVED* dince me ding Ordinance Amending PAMC Chapter 18.15 and (a) Before approving an application for a density bonus, incentive,1 Updating Rental er, modification or revised parking standard, the Approval Authority shall Alternative Regulations ing findings, as applicable: (i-1) The development is eligible for the density bonus and any concessions, waivers, modifications, or revised parking standards requested. (+-2) Any requested concession or incentive will result in identifiable and actual cost reductions based upon the financial analysis and documentation provided. The city finds that the concessions and incentives included in Section 18.15.050(c) will result in identifiable and actual cost reductions. (+.i-3) If the density bonus is based all or in part on donation of land, a finding that all the requirements included in Government Code Section 65915(g) have been met. (-4) If the density bonus, concession or incentive is based all or in part on the inclusion of a child care facility, a finding that all the requirements included in Government Code Section 65915(h) have been met. (5) If the concession or incentive includes mixed -use development, a finding that all the requirements included in Government Code Section 65915(k)(2) have been met. (�-6) If a waiver or modification is requested, a finding that the development standards for which the waiver is requested would have the effect of physically precluding the construction of the development with the density bonus and concessions permitted. (b) Any granted density bonus and/or concession(s) shall terminate with the demolition, destruction or other removal of the structure receiving the density bonus and/or concession. (c) If the findings required by subsection (a) for a concession, incentive or waiver of this Section cannot be made, the Approval Authority may deny an application for a concession, incentive, waiver or modification only if it makes one of the following written findings, supported by substantial evidence: (1) The concession or incentive does not result in identifiable and actual cost reductions required to provide for affordable rents or affordable sales prices; or (+-2) The concession, incentive, waiver or modification would have a specific, adverse impact upon public health or safety or the physical environment or on real property listed in the California Register of Historic Resources, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low and moderate income households. For the purpose of this subsection, "specific adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, written public health or safety standards, policies, or conditions as they existed on the date that the application for the development was deemed complete; or 21 0160139_20240416_ay16 Item 11: Staff Report Pg. 25 Packet Pg. 103 of 281 Item 11 Attachment A - Draft *NOT YET APPROVED* Ordinance Amending PAMC Chapter 18.15 and (+i3) The concession, incentive, waiver or modification is contra Updating Rental ral law. Alternative Regulations (d) If the Approval Authority is not the City Council, any decision denying a density bonus, incentive, concession, waiver, modification or revised parking standard may be appealed to the City Council within fourteen days of the date of the decision. 18.15.100 Regulatory Agreement (a) AApplicants for a density bonus, incentive, concession, waiver, modification or revised parking standard shall enter into a regulatory agreement with the city in a form acceptable to the City Attorney. The terms of th draft agrccmcnt shall be approved as to form by the City final approval. (b) Following execution of the agreement by all parties, the completed density bonus regulatory agreement, or memorandum thereof, shall be recorded and the conditions filed and recorded on the development. (c) approval, and rccordation shall takc placc prior to final map approval The executed regulatory agreement shall be recorded on the development prior to approval of a final map, or, where a map is not being processed, prior to approval of the final discr tionar„ r rmit issuance of a building permit. The regulatory agreement shall be binding to all future owners and successors in interest. (d) The regulatory agreement shall be consistent with the guidelines of the city's Below Market Rate Program and shall include at a minimum the following: (-1) The total number of dwelling units approved for the development, including the number of restricted affordable units; (+-2) A description of the household income group to be accommodated by the restricted affordable units, and the standards for determining the corresponding affordable rent or affordable sales price; (+i-i-3) The location, dwelling unit sizes (square feet), and number of bedrooms of the restricted affordable units; (-4) Term of use restrictions for restricted affordable units of at least 55 years for moderate income units and at least 55 years for low and very low units; (v-5) A schedule for completion and occupancy of restricted affordable units; (v.i-6) A description of any concession, incentive, waiver, modification, or revised parking standard, if any, being provided by the city; 22 0160139_20240416_ay16 Item 11: Staff Report Pg. 26 Packet Pg. 104 of 281 *NOT YET APPROVED* Item 11 Attachment A - Draft Ordinance Amending PAMC Chapter 18.15 and (7) A description of remedies for breach of the agreement ( Updating Rental tify tenants or qualified purchasers as third party beneficiaries under th,l0nsJ (8) That any restricted affordable unit offered for sale: is initially sold to and occupied by a person of family of very low, low, or moderate income, or, if not purchased by an income -qualified household within 180 days after the issuance of a certificate of occupancy, the unit is purchased by a qualified non-profit housing corporation, in accordance with Government Code section 65915(c)(2): and (8) Other provisions to ensure implementation and compliance with this section. SECTION 3. As provided in Section 16.65.080(C)(1) of the Palo Alto Municipal Code, the City Council hereby determines that the following percentages of rental affordable units that are equivalent to provision of on -site for -sale affordable units or payment of housing impact fees. This supersedes Section 5 of Ordinance No. 5409. Required Affordable Rental Units (Where rental alternative requested under 16.65.080(C)) Income Category Rental Alternative to For -Sale Units (Sites Less than 5 Acres)* On -Site Alternative for Rental Residential (no condo map) Very Low Income 9% Low Income 15% 15% Moderate Income N/A N/A Total 15% 9% VLI or 15% LI** *Rental alternative equivalents for projects over 5 acres will be subject to Council approval on a case by case basis. ** For Residential Rental Projects, the Director of Planning and Development Services or City Council may approve the provision of a lesser amount of affordable rental units, provided that the remainder of the housing obligation is paid in housing impact fees. For example, if a project may propose to restrict 6% of its dwelling units at rents affordable to very low income households, these units would represent 75% of the project's affordability obligations and the remaining 25% could be paid in impact fees; housing impact fees due would be calculated by taking 25% of the impact fee that would otherwise apply to the project. SECTION 4. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. 23 0160139_20240416_ay16 Item 11: Staff Report Pg. 27 Packet Pg. 105 of 281 Item 11 *NOT YET APPROVED* Attachment Orddinananncece Amending PAMC Chapter 18.15 and SECTION 5. The Council finds that the Ordinance is exempt from the Cali Updating Rental tal Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) be Alternative Regulations een with certainty that there is no possibility that updating the municipal code to incorporate existing changes in State Density Bonus Law will not have a significant effect on the environment. SECTION 6. This Ordinance shall be effective on the thirty-first date 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 Planning and Development Services 24 0160139_20240416_ay16 Item 11: Staff Report Pg. 28 Packet Pg. 106 of 281 Item 12 Item 12 Staff Report City Council Staff Report Report Type: CONSENT ITEMS CITY O F Lead Department: City Clerk PALO a LTO Meeting Date: May 6, 2024 Report #:2402-2635 TITLE Policy & Services Committee Recommendation Regarding State and Federal Legislative and Budgetary Updates and Positions on Pending State Legislation RECOMMENDATION The Policy & Services Committee recommends the City Council confirm support positions for AB 2485, SB 903, SB 915 and receive the attached reports for a state and federal legislative update. BACKGROUND AND ANALYSIS The Policy & Services Committee received an update on state and federal legislative and budgetary issues at the April 9, 2024 meeting (Staff Report 2403-2801)1. The Committee unanimously recommended that the City Council confirm support positions for AB 2485, SB 903, SB 915. All three bills fit within the City's Legislative Guidelines and thus staff is only asking Council to confirm the proposed positions. AB 2485 will enhance transparency in the Housing and Community Development's regional housing needs calculation process. SB 903 will prohibit the manufacture, distribution, or sale of "forever chemicals." SB 915 will grant local governments regulatory authority of autonomous vehicles operating in their jurisdictions. The Committee asked staff for additional information about the funding that the City receives from the State government. Staff researched this information within the 1 -hours rule and found the following information: In FY 2024, as of 3/31/24, a total of $41.2M has been received from the state. Of this amount: • $36.4M are for State Revolving Loan Fund reimbursements for two major capital projects at the Regional Water Quality Control Plant • $2.6M in grants, majority being the Local Housing Trust Fund • $2M for the Newell Bridge Project, allocated under Priority Legislative Budget Projects Item 1, Action Item, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=52846 Item 12: Staff Report Pg. 1 Packet Pg. 107 of 281 Item 12 Item 12 Staff Report Included in this update is a memo from Townsend Public Affairs (TPA) (Attachment A) with the status of state bills on which the City has adopted positions and bills TPA is monitoring for the City. The memo details each bill's summary and status, its Palo Alto -specific impact, and the City's position. The Committee also recommended some additional bills to be placed on the monitoring list and Townsend will include those on future update lists if the bills are shown to have Palo Alto impact and are moving forward this legislative session. FISCAL/RESOURCE IMPACT There is no additional funding needed for this update report. The City Council budgets annually for legislative advocacy services and these efforts are led by staff in the City Clerk's Office with stakeholder support across departments on key issues. STAKEHOLDER ENGAGEMENT Staff from multiple departments are involved in the legislative process. Staff help to review the impacts of bills as well as discuss grant opportunities linked to state and federal programs. ENVIRONMENTAL REVIEW The City's legislative advocacy activities are not a project under section 15378(b)(25) of the California Environmental Quality Act Guidelines (administrative activities that will not result in direct or indirect physical changes in the environment). ATTACHMENTS Attachment A: Update Memo from Townsend Public Affairs Attachment B: Bill Analysis on AB 2485 Attachment C: Bill Analysis on SB 903 Attachment D: Bill Analysis on SB 915 APPROVED BY: Mahealani Ah Yun, City Clerk Item 12: Staff Report Pg. 2 Packet Pg. 108 of 281 T3WNSEND PUBLIC AFFAIR:. EST TPA 1998 MEMORANDUM Item 12 Attachment A - Update Memo from Townsend Public Affairs To: Council Members Kou, Lythcott-Haims, and Tanaka (Policy and Services Committee) cc: Ed Shikada, City Manager; Chantal Cotton Gaines, Deputy City Manager From: Townsend Public Affairs Niccolo De Luca, Vice President Carlin Shelby, Associate Date: March 22, 2024 Subject: State and Federal Legislative Updates Townsend Public Affairs, Inc. (TPA) has prepared this report for the City of Palo Alto's Policy and Services Committee to provide a summary of State and Federal efforts, highlight the current status of the legislative process, and identify various pieces of legislation that may be of interest to the City. State Legislative Updates The State Legislature convened the second year of the 2023-2024 legislative session on January 3, 2024. Since then, the Legislature has introduced a total of 2,124 bills before the bill introduction deadline of February 16. Of the total bills introduced, there were 619 Senate Bills and 1,505 Assembly bills. This total is comparable to previous legislative sessions, which typically hover around 2,000- 2,200 bill introductions total. Following this bill introduction milestone, the months of March and April will continue to be focused on policy committee hearings, which serve as the first filter for the consideration of the practical impacts of proposed legislation. The first house policy committee process is a critical time to suggest policy amendments to bills before they move on to their appropriations Committee for consideration of their fiscal impact (if there is one) and the floor for consideration from the entire legislative body. Notable trends that have emerged during the 2024 Legislative Session include development impact fee transparency and delays, organized theft prevention, utility rate affordability, and autonomous and active transportation reforms, among others. Priority Legislation for the City of Palo Alto 1. Bills With City Positions The following chart provides an overview of bills with pending positions taken as of March 22, 2024. Item 12: Staff Report Pg. 3 Packet Pg. 109 of 281 Item 12 Attachment A - Update Memo from Townsend Public Affairs BILL SUMMARY/STATUS CITY IMPACT POSITION Phases out the sale and use of leaded airplane This bill is likely to result in SB 1193 fuel at airports in California airplane emissions and health impacts associated City Position: Men'ivar Status: Pending consideration from the Senate with the flight paths over the Support Environmental Safety and Toxic Materials City, which aligns with the Committee City's Legislative Guidelines. 2. Bills With Recommended Action The following chart features four measures that TPA advocates have identified at this time with recommendations for the City to take a formal position on. Based on the existing legislative guidelines, the City could take these positions through Mayoral review pending Council consideration and approval. BILL SUMMARY / STATUS CITY IMPACT RECOMMENDATION Prohibits utility hook-up fees from exceeding 1% of the reported building permit value of the unit If passed, this bill could SB 1210 for new housing construction. negatively impact local utility Recommendation: (Skinner) Status: Pending consideration from the Senate revenues and could impact Oppose Energy, Utilities, and Communications service quality long-term. Committee. Enhances transparency in HCD's regional For future RHNA cycles, this housing needs calculation process by creating an bill would increase transparency for how HCD AB 2485 advisory panel and requiring the publication of calculates its regional Recommendation: Carrillo methodologies used on HCD's website. housing needs numbersrs Support Status: Pending consideration from the Assembly , which could offer the y Housing Committee. more clarity moving forward. Beginning 2030, prohibits the manufacture, If passed, this bill could work distribution, or sale of any product that contains to reduce the presence of intentionally added PFAS. Requires the "forever chemicals" in public SB 903 Department of Toxic Substances Control to water supplies, thus Recommendation: Skinner include on its website products that meet criteria increasing public health and Support for unavoidable use and requires them to be alleviating costs and reassessed regularly. resources associated with its Status: Pending consideration from the Senate remediation. Environmental Quality Committee. Given the presence of self - Grants local authority over the operations and driving vehicles in the City SB 915 regulations for autonomous self -driving vehicles, and the Bay Area, this bill would offer the city more Recommendation: Cortese Status: Pending consideration from Senate Local local control over the Support Government Committee. operations of these vehicles to protect the public's safety. Item 12: Staff Report Pg. 4 Packet Pg. 110 of 281 Item 12 Attachment A - Update Memo from Townsend Public Affairs 3. Notable bills with Recommendations to Monitor The following chart encompasses priority legislation TPA advocates are monitoring on behalf of the City (in addition to the bills listed in the previous tables). Any positions shared beyond "Monitoring" is as of this moment based on current TPA advocates recommendations and are subject to change, pending a review of each bill's impact on the City. Should the City Council or staff note any additional pieces of legislation to incorporate into this chart, TPA advocates will gladly accommodate. BILL SUMMARY POSITION Energy and Utilities AB 2037 Grants county sealers jurisdiction over publicly -operated electric vehicle (EV) (Pa an) p charger to test all weight and measuring devices. Authorizes county sealers to "registration Monitoring charge a fee" to cities they service. Requires GO -Biz's Zero -Emission Vehicle Market Development Office to develop a model permitting checklist, model zoning ordinances, and best practices for permit costs and permit review timelines to help local AB 2427 governments permit curbside charging stations as part of the office's Monitoring (McCarty) development of the Electric Vehicle Charging Station Permitting Guidebook or any subsequent updates. The bill would also require the office to consult with local governments, electric vehicle service providers, and utilities while developing the above -described materials. AB 2601 Requires that energy -efficient appliances provided pursuant to the Energy Ramos Savings Assistance Program shall only replace natural gas appliances with Monitoring electric appliances. AB 2619 Repeals the CPUC net energy metering 3.0 (NEM 3.0) ruling that cut (Connolly) incentives for customers to install solar and would restore the previous net Monitoring energy metering incentives/market. Provides that any electrical rate schedule that imposes rates on vulnerable customers (senior citizens, medically or economically vulnerable, etc.) above AB 3011 (Bains) baseline rates during any hour where the temperature is above 90 degrees Fahrenheit for the duration of the hour is considered an unreasonable Monitoring hardship. Environmental Quality Authorizes local jurisdictions to be credited for the procurement of recovered organic waste products through an agreement with a direct service provider and would allow the direct service provider agreement to include the procurement of recovered organic waste products on a prospective or retrospective basis as long as the purchase of those products occurs during AB 2346 (Lee) the year for which the local jurisdiction seeks credit. The bill also allows local Monitoring governments to count investments made for the expansion of capacity of compostable materials into their procurement targets. Item 12: Staff Report Pg. 5 Packet Pg. 111 of 281 Item 12 Attachment A - Update Memo from Townsend Public Affairs BILL SUMMARY POSITION Governance and Transparency Existing law establishes Brown Act remote teleconferencing allowances for local agency officials and limits them to no more than 3 consecutive months or 20% of the regular meetings for the local agency within a calendar year, or AB 2032 (Addis) more than 2 meetings if the legislative body regularly meets fewer than 10 times per calendar year. This bill would revise those limits, instead prohibiting Monitoring such participation for more than a specified number of meetings per year, based on how frequently the legislative body regularly meets. SB 1032 Allows local agencies additional time to respond to PRA requests during a Monitoring (Seyarto) state of emergency. Homelessness Requires the Governor to appoint a Statewide Homelessness Coordinator to AB 2338 serve as the lead person for ending homelessness in California. The Monitoring (Jones -Sawyer) Coordinator would be tasked with identifying a local leader in eeach local government throughout the state to collaborate on homeless solutions. SB 1011 Prohibits unhoused individuals from loitering on public property, so long as Jones peace officers provide them with 72 hours of notice and resources related to Monitoring available services and housing. Housing and Land Use AB 1889 Requires local governments to incorporate a wildlife connectivity plan into the Monitoring (Friedman) next update or amendment to its general plan beginning after January 1, 2025 Clarifies that the builder's remedy is applicable to cities and counties that have AB 1886 not received official certification of housing element compliance from HCD. Monitoring (Alvarez) Additionally creates a rebuttable presumption of the validity of HCD's findings as to whether an adopted element or amendment complies with housing law. Makes various changes to the objective standards and affordability and site AB 2243 criteria applicable to an affordable housing development or mixed -income Monitoring (Wicks) housing development subject to the streamlined, ministerial review process under AB 2011 (Statutes of 2023) Prohibits local governments from charging monitoring fees on developments AB 2430 that include a 100% affordability component for lower income households and Monitoring (Alvarez) have received a density bonus. Additionally, the bill phases out all monitoring fees on existing properties that meet these standards beginning 2025. Revises zoning standards by which a local government may impose a AB 2553 vehicular traffic impact fee from a "transit station" to a "major transit stop," thus (Friedman) narrowing the applicability of sites eligible for the imposition of those fees. The Monitoring bill further modifies the definition of what constitutes a major transit stop to increase the frequency of service intervals from 15 to 20 minutes. AB 2584 (Lee) Prevents institutional investors that own more than 1,000 single-family homes Monitoring from purchasing additional properties and converting them into rentals. AB 3057 exempts from CEQA the adoption of an ordinance by a city or county to Wilson provide for the creation of junior accessory dwelling units in single-family Monitoring residential zones. Item 12: Staff Report Pg. 6 Packet Pg. 112 of 281 Item 12 Attachment A - Update Memo from Townsend Public Affairs BILL SUMMARY POSITION SB 1211 Streamlines the development of ADUs on properties with multifamily housing. Monitoring (Skinner) (In spot form, lacks substantive language) SB 1212 Bars hedge funds and other corporate investment entities from buying single- Monitoring Skinner family homes in California. Labor Relations and Retirement Requires each public agency with bargaining unit vacancy rates exceeding AB 2561 10% for more than 90 days within the past 180 days to meet and confer with a (McKinnor) representative of the recognized employee organization to produce, publish, Monitoring and implement a plan consisting of specified components to fill all vacant positions within the subsequent 180 days. SB 1116 Allows striking workers to collect unemployment insurance benefits after two Monitoring (Portantino) weeks. Public Safety AB 2309 Authorizes the city attorney of any general law city or chartered city to (Muratsuchi) prosecute any misdemeanor committed within the city arising out of violation Monitoring of state law without the consent of the district attorney. AB 2574 Codifies existing case law from 2019, which determined that unlicensed (Alvarez) recovery homes operating as part of a licensed treatment facility located Monitoring elsewhere may be considered unlawful business use within a residential zone. Proposes Proposition 47 reforms including aggregating theft amounts to SB 22 (Umberg) amount to grant theft felony, adding enhancements for organized theft crimes, includes enhancements for the trafficking and furnishing of fentanyl, among Monitoring other provisions. Removes hurdles to prosecutors holding auto burglars accountable by SB 905 (Wiener) removing the requirement that a victim prove a vehicle was locked in order to establish a crime. Monitoring Revenue and Taxation Authorizes a local government to designate one or more downtown revitalization and economic recovery financing districts for the purpose of AB 2488 (Ting) financing office -to -residential conversion projects with incremental tax Monitoring revenues generated by office -to -residential conversion projects within the district. Makes statutory changes to ACA 1 which will appear on the November 2024 ballot to lower the voter threshold for the passage of general obligation bonds from 2/3 to 55%. This bill modifies the allowable uses of funds generated via AB 2813 bonds to include affordable housing programs. Further, the bill specifies that (Aguiar-Curry) special taxes are limited to a useful life of at least 15 years or 5 years if the Monitoring funds are used for public safety purposes. The bill also specifies that a local government may commit revenues to projects or programs administered by nonprofit organizations for affordable or permanent supportive housing programs. Item 12: Staff Report Pg. 7 Packet Pg. 113 of 281 Item 12 Attachment A - Update Memo from Townsend Public Affairs BILL SUMMARY POSITION Requires the Office of Planning and Research, upon appropriation by the SB 955 Legislature, to establish the Infrastructure Gap -Fund Program to provide Monitoring Se arto grants to assist local agencies in developing and constructing infrastructure projects. Transportation Beginning on January 1, 2025, prohibits the addition of a right -turn or travel AB 2744 lane within 20 feet of a marked or unmarked crosswalk where there is not McCart already a dedicated and marked right -turn or travel lane, and prohibits Monitoring vehicles from using this 20 -foot area for right turns unless the area is already marked as a dedicated right -turn lane before January 1, 2025. Authorizes Bay Area voters to consider a measure to fund climate -friendly transportation investments in the San Francisco Bay Area as early as 2026. SB 1031 requires a minimum of $750 million in revenues from a future Bay Area Monitoring (Wiener) transportation measure to be annually allocated to public transportation operations and regional transit coordination initiatives directly related to operations spending, State Budget Update State lawmakers this year are focused on mediating the issues associated with an anticipated budget deficit. Following the release of the Governor's January Budget Proposal which outlined a spending plan to absorb the impacts of a $38 billion deficit, the nonpartisan Legislative Analyst's Office (LAO) did its own update to State Revenues and projected deficit. The LAO reports a revised budget shortfall of $73 billion which is $15 billion more than was previously forecasted in December. These numbers contrast significantly with the Governor's budget proposal, mostly due to anticipations surrounding revenue returns. The LAO said that the actual budget shortfall will depend on a variety of factors, such as mandatory Proposition 98 spending on schools and community colleges. To mitigate the impacts of this anticipated shortfall, the LAO suggests that lawmakers find "new budget solutions" to ensure a balanced budget for the 2024-25 fiscal year. The LAO said solutions could include increasing revenue, reducing either — or both — one-time and ongoing spending, and exploring the possibility of cost shifts or dipping into reserves. Lawmakers are exploring a number of proposed avenues to temporarily cut one-time spending to manage the issue, totaling $16 billion. Categories of cuts include business and labor, criminal justice, education, health and human services, housing and homelessness, resources and environment, and transportation. Looking forward, the budget process will continue to unfold with the introduction of April tax receipts, which could change the deficit picture. The Department of Finance emphasizes that the State is still forecasted to see more than $51 billion in income and corporate tax receipts. The State's progressive taxing structure oftentimes leads to a boom and bust cycle with most revenues tied to the performance of high -income earners. This creates volatile budget cycles, which can change within a matter of months depending on revenue returns. 6 Item 12: Staff Report Pg. 8 Packet Pg. 114 of 281 Item 12 Attachment A - Update Memo from Townsend Public Affairs The Legislature is in the process of creating a counter -budget proposal which will kick off negotiations between both houses and the Governor's office. The next few weeks will feature budget committee hearings and additional insights into the Legislature's spending and saving priorities. .I. Update on Congressionally Directed Spending Submittal The City/TPA team worked in partnership to draft, fine-tune, and submit a congressionally directed spending request for infrastructure funding to help redevelop the Buena Vista Mobile Home Park. The Park, a locally significant affordable housing resource, is in desperate need of sustainable redevelopment, including 100% electrification. An award would assist the predominantly Latinx and very low-income residents who call it home. This application was in partnership with the Santa Clara County Housing Authority and was submitted to Senator Padilla, Senator Feinstein, and Congresswoman Eshoo. On March 9, the President signed the first tranche of Appropriations Bills into law, which included the earmark for the Buena Vista Mobile Home Park in the amount of $850,000. The funding is expected to be delivered to the Santa Clara County Housing Authority within the next few weeks. Looking forward, the TPA team has completed an application for funding from the FY 2025 congressionally directed spending request process to Senator Butler for the Fire Station #4 Replacement Project in the amount of $3 million. TPA will replicate this application to put forward for Senator Padilla and Congresswoman Eshoo as well. Federal Budget Update On March 22, congressional leaders reached an agreement with the White House on a package of funding bills, finally bringing the Fiscal Year 2024 federal government funding debate to a close. The deal includes roughly $1.2 trillion in funding for key federal departments. These include the Departments of: • Defense • Homeland Security • State • Treasury • Labor • Health and Human Services • Education In a true sign of compromise, leaders from both political parties claimed legislative victories as part of the agreement. Congressional Republicans are touting a boost in migrant detention beds from 34,000 to 42,000, a pay increase for US troops, cuts to diversity programs and the Pentagon's climate change program, and a six percent cut to foreign aid. Democrats are celebrating 12,000 new visas for Afghan migrants, as well as increases to Title I education funding, Head Start, cancer research, and Alzheimer's research. Additionally, this latest package would boost funding for the Defense and Homeland Security departments and provide a 5.2% pay raise for troops. State -Foreign Operations funding would be Item 12: Staff Report Pg. 9 Packet Pg. 115 of 281 Item 12 Attachment A - Update Memo from Townsend Public Affairs reduced by six percent from Fiscal Year 2023 levels; other agencies, such as the Education Department, would also be cut. The bill also includes funding for the construction of a new FBI headquarters. The agreement, which had been held up in recent weeks over Homeland Security funding, would expand detention facilities for migrants but doesn't include sweeping border policy changes Republicans sought. Other policy riders included in the package are a measure that bans US embassies from displaying LGBTQ+ Pride flags, block funding for the United Nations Relief and Works Agency, prohibits the government from banning gas stoves, and provides 12,000 new visas for Afghans who helped the US during the Afghanistan War. The longstanding Hyde Amendment, which restricts funds for most abortions, is maintained, while other Republican -backed abortion restrictions were omitted. Finally, the measure rescinds about $20 billion in tax enforcement funds for the IRS provided by Democrats' 2022 tax, health, and climate law. Congress will now immediately turn its attention toward funding for Fiscal Year 2025. 8 Item 12: Staff Report Pg. 10 Packet Pg. 116 of 281 Item 12 Attachment B - Bill Analysis on AB 2485 TOWNSEND PUBLIC AFFAIRS EST TPA 1998 MEMORANDUM To: City of Palo Alto From: Townsend Public Affairs Date: March 22, 2024 Subject: Bill Analysis: AB 2485 (Carrillo) The official text of AB 2485 can be found here. Summary AB 2485 (Carrillo) seeks to enhance transparency in the Department of Housing and Community Development's (HCD) regional housing needs calculation process by creating an advisory panel and requiring the publication of methodologies used on HCD's website. Specifically, AB 2485: • Requires, for the 7th and subsequent revision cycles of the housing element, the assembly and convening of an advisory panel that includes, among others, an expert on the data assumptions by each council of governments to advise HCD on the assumptions and methodology it will use to determine each region housing need. • Requires the advisory panel to be comprised of the following: o A United States Census Bureau -affiliated practitioner. o An expert on population projections and transportation needs, and o A representative from the council of governments. Requires HCD to publish on its Internet website the data sources, analyses, and methodology, including the assumptions and factors used in and applied to the Department of Finance projections and engagement process with the council of governments, prior to finalization of the regional determination. Status AB 2485 was amended into its current form on March 19 and is pending policy committee scheduling. Author's Statement "In March 2022, the State Auditor conducted an emergency audit to examine the RHNA process and identified several errors in HCD's housing projections, resulting in a decrease in the housing State Capitol Office • 925 L Street • Suite 1404 • Sacramento, CA 95814 • Phone (916) 447-4086 • Fax (916) 444-0383 Federal Office • 600 Pennsylvania SE • Suite 207 • Washington, DC 20003 • Phone (202) 546-8696 • Fax (202) 546-4555 Southern California Office • 1401 Dove Street • Suite 330 • Newport Beach, CA 92660 • Phone (949) 399-9050 • Fax (949) 476-8215 Central California Office • 744 P Street • Suite 308 • Fresno, CA 93721 • Phone (949) 399-9050 • Fax 949 476-8215 Northern California Office • 300 Fran Item 12: Staff Report Pg. 11 Packet Pg. 117 of 281 5-9030 Item 12 Attachment B - Bill Analysis on AB 2485 amounts. Specifically, Sacramento COG fell short by 2,484 housing units and Santa Barbara COG by 1,338 units. The State Auditor attributed HCD's miscalculations to a lack of oversight in staff data entry and a failure to consider all factors required by state law in its estimates. Additionally, the State Auditor stated that shortcomings in calculations and support for HCD's factor considerations risk eroding public confidence in their ability to provide accurate information to COGs about housing needs. In 2021, the Orange County COGs filed a lawsuit against HCD, claiming that HCD used inaccurate data rates in their evaluations. In a separate lawsuit, individuals and nonprofit corporations argued that HCD failed to consider factors required by law in its assessment for the San Francisco Bay Area COGs. The State Auditor recommended a formal review process and thorough documentation measures to ensure that all RHNA calculations provided to COGs by the HCD are accurate. AB 2485 aims for transparency in the RHNA determination process by providing COGs, housing stakeholders, members of the public, and all interested parties with information on the data sources, analyses, and calculation methods used by HCD. This bill would establish a formal review process by creating an expert panel to advise HCD on its assumptions, data, and analyses prior to a final RHNA determination." Support and Opposition AB 2485 is officially sponsored by the Southern California Association of Governments (SCAG). There are no officially recorded entities registered in support or opposition as of March 22. The release of the measure's first policy committee analysis will reveal more. Recommended Position Support This bill will increase local government stakeholder engagement on the RHNA allocations for future cycles of the housing element revision process. This in turn will increase transparency and ensure that HCD is responsible for its methodologies in assessing regional housing needs allocations. 2 Item 12: Staff Report Pg. 12 Packet Pg. 118 of 281 Item 12 Attachment C - Bill Analysis on SB 903 TOWNSEND PUBLIC AFFAIRS EST TPA 1998 MEMORANDUM To: City of Palo Alto From: Townsend Public Affairs Date: March 22, 2024 Subject: Bill Analysis: SB 903 (Skinner) The official text of SB 903 can be found here. Summary SB 903 prevents the sale and use of products containing per- and polyfluoroalkyl substances — commonly known as "PFAS" — unless the use of PFAS in the product is necessary and there is not a safer alternative available. Specifically, SB 903: • Prohibits a person from distributing, selling, or offering for sale a product that contains intentionally added PFAS by 2030 • Provides a narrow exemption if the Department of Toxic Substances Control has made a determination that the use of PFAS in the product is currently unavoidable, the prohibition is preempted by federal law, or the product is used. • Requires the Department of Toxic Substances Control to maintain on its internet website a list of each determination of currently unavoidable use, when each determination expires, and the products and uses that are exempt from the prohibition. • Imposes a civil penalty for a violation of the prohibition. Additionally establishes the PFAS Penalty Account and requires all civil penalties received to be deposited into that account and, upon appropriation by the Legislature, to be used for the administration and enforcement of the provisions. • Requires the Department of Toxic Substances Control to adopt regulations to implement the provisions of the bill by 2027. Status SB 903 has been referred to the Senate Environmental Committee with a hearing date set for April 3. State Capitol Office • 925 L Street • Suite 1404 • Sacramento, CA 95814 • Phone (916) 447-4086 • Fax (916) 444-0383 Federal Office • 600 Pennsylvania SE • Suite 207 • Washington, DC 20003 • Phone (202) 546-8696 • Fax (202) 546-4555 Southern California Office • 1401 Dove Street • Suite 330 • Newport Beach, CA 92660 • Phone (949) 399-9050 • Fax (949) 476-8215 Central California Office • 744 P Street • Suite 308 • Fresno, CA 93721 • Phone (949) 399-9050 • Fax 949 476-8215 Northern California Office • 300 Fran Item 12: Staff Report Pg. 13 Packet Pg. 119 of 281 5-9030 Item 12 Attachment C - Bill Analysis on SB 903 Author's Statement "PFAS are used in a wide range of products because of their stain- and water-resistant and nonstick properties. Forever chemicals are used in clothing, packaging, plastic food ware, cleaning products, ski waxes, menstrual products, metal products, paints, propellants, coatings, and much more. According to a new data report by the Natural Resources Defense Council (NRDC), PFAS has been found in water systems serving at least 25.4 million Californians. A study commissioned by the Centers for Disease Control and Prevention identified PFAS in the breast milk, umbilical cord blood, or bloodstreams of 98% of participants. A 2023 report by the U.S. Geological Survey estimated that nearly half of the nation's tap water is contaminated with forever chemicals. In addition to being associated to higher rates of kidney and testicular cancer, exposure to PFAS has been linked to high cholesterol and harmful impacts on the liver, kidneys, and immune, nervous, and reproductive systems. Toxic PFAS chemicals have contaminated our water, air, food, and even our bodies. PFAS can cause harm at vanishingly low levels — and yet we continue to pump out vast new quantities of them into the worl. This bill is a sensible and comprehensive approach to phase out unnecessary uses of PFAS so that we stop adding to an already enormous problem." Support and Opposition SB 903 is sponsored by the California Association of Sanitation Agencies, Breast Cancer Prevention Partners, Clean Water Action, and Environmental Working Group. The release of the measure's first policy committee analysis will reveal more. Recommended Position Support This bill could result in public health benefits and resource and cost savings associated with removing PFAS from public water utilities. 2 Item 12: Staff Report Pg. 14 Packet Pg. 120 of 281 Item 12 Attachment D - Bill Analysis on SB 915 TOWNSEND PUBLIC AFFAIRS EST TPA 1998 MEMORANDUM To: City of Palo Alto From: Townsend Public Affairs Date: March 22, 2024 Subject: Bill Analysis: SB 915 (Cortese) The official text of SB 915 can be found here. Summary SB 915 grants local governments control over the rules and regulations self -driving autonomous vehicles must follow before being deployed within communities. Specifically, SB 915: Prohibits an autonomous vehicle service from operating within a jurisdiction unless authorized by a local government ordinance. Authorizes each city, county, or city and county in which an autonomous vehicle has received authorization to operate, to protect the public health, safety, and welfare by adopting an ordinance or resolution in regard to autonomous vehicle services within that jurisdiction. Requires local governments that adopt an ordinance or resolution to include certain provisions within that ordinance or resolution. These would include a policy for entry into the business of providing autonomous vehicle services including a permitting program, the establishment of reasonable vehicle caps and hours of service restrictions, and the establishment of an interoperability or override system accessible by first responders in case of an emergency. • Authorizes local governments to levy service charges, fees, or assessments in the amount sufficient to pay for the costs of carrying out an ordinance or resolution adopted in regard to autonomous vehicle services. Makes it unlawful to operate an autonomous vehicle service without a valid permit to operate issued by the local jurisdiction in which the service is substantially located, with violations subject to administrative fines. • Authorizes a local government to enter into an agreement with another local government to form a joint powers authority or into an agreement with a transit agency for the purpose State Capitol Office • 925 L Street • Suite 1404 • Sacramento, CA 95814 • Phone (916) 447-4086 • Fax (916) 444-0383 Federal Office • 600 Pennsylvania SE • Suite 207 • Washington, DC 20003 • Phone (202) 546-8696 • Fax (202) 546-4555 Southern California Office • 1401 Dove Street • Suite 330 • Newport Beach, CA 92660 • Phone (949) 399-9050 • Fax (949) 476-8215 Central California Office • 744 P Street • Suite 308 • Fresno, CA 93721 • Phone (949) 399-9050 • Fax 949 476-8215 Northern California Office • 300 Fran Item 12: Staff Report Pg. 15 Packet Pg. 121 of 281 5-9030 Item 12 Attachment D - Bill Analysis on SB 915 of regulating or administering autonomous vehicle services within jurisdictional boundaries. Status SB 915 has been referred to the Senate Local Government Committee with a hearing date scheduled for April 3. Author's Statement None available at this time Support and Opposition SB 915 is sponsored by the League of California Cities and has received support from other Bay Area jurisdictions with autonomous vehicle operating agreements in place. The official committee analysis will reveal a more comprehensive list of supporters and opponents. Recommended Position Support This bill provides for additional local control over the operations and licensing of autonomous vehicle services. Given Palo Alto's location in the Bay Area and proximity to tech sectors, this bill could provide additional guardrails for future agreements with autonomous vehicle companies, providing for the safety and well-being of residents. 2 Item 12: Staff Report Pg. 16 Packet Pg. 122 of 281 Item 13 Item 13 Staff Report CITY OF PALO ALTO City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Human Resources Meeting Date: May 6, 2024 Report #:2404-2918 TITLE Adoption of a Resolution to Appoint Katherine Murdock of Baker Tilly US, LLP as City Auditor; CEQA status — Not a Project RECOMMENDATION The Council Appointed Officers Committee recommends the City Council appoint Katherine Murdock, Certified Internal Auditor (CIA), Certified Government Auditing Professional (CGAP) of Baker Tilly US, LLP, as Palo Alto's City Auditor BACKGROUND The Palo Alto Charter provides that the City Council appoint an Auditor who serves at the Council's will. The Charter describes the Auditor's key duties. (See Charter, Art. IV, sections 1 and 12). The City entered a contract with Baker Tilly US, LLP, as Palo Alto's City Auditor, effective October 1, 2020. In May of 2022, the Council Appointed Officers (CAO) Committee recommended and the Council approved an amendment to that contract to extend the term to June 30, 2025. Under that contract, the City has appointed several individuals from Baker Tilly to perform the duties of the City Auditor. In February 2024, Baker Tilly informed the City that the previous City Auditor vacated the appointed position. ANALYSIS On March 11, 2024, the City Council discussed the interview process for the selection of a City Auditor. After discussion, the City Council directed staff and Baker Tilly to coordinate interviews for the Council Appointed Officers (CAO) Committee to interview the qualified candidates and narrow the selection of the candidates for Council to interview up to three candidates. After completing the interview process, Katherine Murdock has been selected for the position of City Auditor as provided in the Charter, on an ongoing basis. Katherine Murdock is a public sector services manager with more than 20 years of experience Item 13: Staff Report Pg. 1 Packet Pg. 123 of 281 Item 13 Item 13 Staff Report serving in auditor and risk analyst roles for municipal governments, including Austin Energy, the City of Austin's Office of the City Auditor and the City of Sunnyvale. Her experience includes enterprise risk management, internal audits, and performance audits for local governments and municipal utilities. Other specific experience includes fraud mitigation, contract compliance, financial and business process audits, and gap analyses to provide recommendations for improved operations. The appointment of Katherine Murdock as City Auditor will begin immediately and end on the expiration of the agreement for outsourced internal auditing services between the City of Palo Alto and Baker Tilly US, LLP, including any amendment, extension, or termination approved by the Council, or, consistent with at -will service, at the Council's discretion at an earlier date as determined by Council. FISCAL/RESOURCE IMPACT There is no resource impact associated with this appointment. The Baker Tilly contract is executed and budgeted in the FY 2024 Adopted Budget. STAKEHOLDER ENGAGEMENT The interview process for this City Auditor selection was previously discussed in public meetings, and City Council directed this appointment. ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by CEQA because appointing a City Auditor is a continuing administrative activity. CEQA Guidelines section 15378(b)(2). ATTACHMENTS Attachment A: Resolution Appointing Katherine Murdock as Palo Alto City Auditor APPROVED BY: Sandra Blanch, Human Resources Director Item 13: Staff Report Pg. 2 Packet Pg. 124 of 281 NOT YET APPROVED Resolution No. Item 13 hment A Attachment A - Resolution Appointing Katherine Murdock as the Palo Alto City Auditor A Resolution of the City Council for the City of Palo Alto Appointing Katherine Murdock, Certified Internal Auditor, Baker Tilly US, LLP, as the Palo Alto City Auditor. RECITALS A. The Palo Alto City Charter specifies the duties and functions of the City Auditor for the City of Palo Alto; B. The Charter further specifies that the City Council shall appoint the City Auditor; C. Since October 1, 2020, the City has procured City Auditor services through a professional services agreement with Baker Tilly US, LLP; D. In February 2024, Baker Tilly informed the City that the previous City Auditor vacated the appointed position; E. The Council requested up to three candidates from Baker Tilly US, LLP and conducted interviews with candidates to serve as City Auditor; NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows: SECTION 1. The Council hereby appoints Katherine Murdock, Certified Internal Auditor, Baker Tilly US, LLP, as City Auditor for the City of Palo Alto; SECTION 2. Katherine Murdock shall serve as City Auditor at the will of the Council as provided by the Charter, and shall further serve according to all of the terms and provisions of the Charter, the Municipal Code and the agreement for outsourced internal auditing services between the City of Palo Alto and Baker Tilly US, LLP; and, SECTION 3. Nothing in this action confers employment or other employment rights, responsibilities and obligations to Katherine Murdock or Baker Tilly US, LLP; and, // // // Item 13: Staff Report Pg. 3 Packet Pg. 125 of 281 NOT YET APPROVED Item 13 A Attachment A - Resolution Appointing 3therine Murdock as the Palo Alto City Auditor ) SECTION 4. This resolution shall be effective immediately. The appointment o Katherine Murdock as City Auditor shall begin immediately and end on the expiration of the agreement for outsourced internal auditing services between the City of Palo Alto and Baker Tilly US, LLP, including any amendment, extension or termination approved by the Council, or, consistent with at -will service, at the Council's discretion at an earlier date as determined by Council. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED AS TO FORM: Mayor APPROVED: Deputy City Attorney City Manager Item 13: Staff Report Pg. 4 Packet Pg. 126 of 281 Item 14 Item 14 Staff Report CITY OF PALO ALTO City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Transportation Meeting Date: May 6, 2024 Report #:2403-2735 TITLE Approval of Contract Amendment Number 6 to Contract C18171057 with AECOM to increase compensation by $297,206 for a new total not to exceed of $3,894,034 and Extend the Term for Six Months for Additional Studies, Outreach, and Support for Rail Grade Separation Projects along Caltrain Corridor; CEQA status — statutorily exempt under CEQA section 15262 (feasibility and planning study). RECOMMENDATION Staff recommends that the City Council approve and authorize the City Manager or designee to execute Contract Amendment No. 6 to Contract C18171057 with AECOM, to increase compensation by $297,206 and to extend the contract by six months, to increase the scope of services to update to project materials, conduct outreach, and support for the Railroad Grade Separation Projects at Churchill Avenue (PL -24000) and Meadow Drive/Charleston Road (PL - 24001). This Contract Amendment results in a revised contract total not -to -exceed amount of $3,894,034. EXECUTIVE SUMMARY Staff recommends that the City Council approve and authorize the City Manager to execute Amendment No. 6 to Contract C18171057 with AECOM for the Railroad Grade Separation Projects at Churchill Avenue (PL -24000) and Meadow Drive/Charleston Road (PL -24001) for the technical services and professional support and to increase the compensation by $297,206 on a time and material basis for a total not -to -exceed amount of $3,894,034 and extending the contract to April 30, 2025. This amendment will allow AECOM to perform updates to the project materials including conceptual plans, profiles, sections, renderings, fact sheets, costs etc. and assist staff in conducting outreach as directed by the Rail Committee and the City Council on the remaining rail crossing alternatives. Item 14: Staff Report Pg. 1 Packet Pg. 127 of 281 Item 14 Item 14 Staff Report BACKGROUND & ANALYSIS The City Council approved a contract with AECOM to serve as the primary consultant for the Connecting Palo Alto Rail Grade Separation Project on April 16, 2018 (C18171057) for the contract in the amount of $1,278,660 ( Staff Report 91001). Following the original contract, City executed the following amendments: • Amendment No. 1 on June 24, 2019 (Staff Report 104632), • Amendment No. 2 on June 23, 2020 (Staff Report 112733), • Amendment No. 3 on April 26, 2021 (Staff Report 121534), • Amendment No. 4 on May 16, 2022 (Staff Report 143415), • Amendment No. 5 on April 23, 2024 (6 Month Time Extension only). These contract amendments provided for professional services and continuity of support for rail grade separation projects. These tasks included the development of conceptual alternatives, conducting technical studies, and providing outreach efforts and assistance to the City staff. The consultant has completed majority of tasks in the existing contract amendments that includes developing and refining conceptual plans, conducting additional studies (traffic study, noise and vibration study, preliminary geotechnical study, sea level rise assessment, heat island effect, and storm runoff analysis). In addition, the Consultant has also completed update to other project materials as directed for update to renderings and a summary of the evaluation of the Council adopted criteria. In November 2023, the Caltrain Staff provided an update on the four -tracking analysis at a Rail Committee Study Session (Caltrain Presentation6). In addition, the City also received technical review comments from Caltrain staff on the Partial Underpass and Closure with Mitigation Alternatives at Churchill Avenue and for Hybrid, Viaduct, and Underpass Alternatives at Meadow Drive and Charleston Road crossings. These comments were discussed in detail at the January 23, 2024, Rail Committee meeting (Staff Report 2311-23037). At this meeting, the Rail committee 1 City Council, April 16, 2018; CMR ID # 9100: https://www.citvofpaloalto.org/files/assets/public/v/1/agendas- minutes-reports/reports/city-manager-reports-cmrs/year-archive/2018/9100.pdf 2 City Council, June 24, 2019; CMR ID# 10463 https://www.citvofpaloalto.org/files/assets/public/v/1/agendas- minutes-reports/reports/city-ma nager-reports-cmrs/year-archive/2019/id-10463.pdf 3 City Council, June 23, 2020; CMR ID# 11273: https://www.citvofpaloalto.org/files/assets/public/v/1/agendas- m i n utes-re po its/reports/city-manager-reports-cm rs/yea r-archive/2020/i d-11273. pdf 4 City Council, April 26, 2021; CMR ID# 12153: https://www.cityofpaloalto.org/files/assets/public/v/2/agendas- minutes-reports/reports/city-manager-reports-cmrs/year-archive/2021/id-12153.pdf 5 City Council, May 23, 2022, CMR ID# 14341 https://cityofpaloaIto.primegov.com/Public/CompiledDocument?meetingTemplateld=12256&compileOutputType =1 6 Rail Committee, November 21, 2023, https://cityofpaloaIto.primegov.com/Portal/viewer?id=0&type=7&uid=d2057565-6b16-44eb-b5eb-2a021fad2f24 Rail Committee, January 23, 2024, CMR ID# 2311-2308: https://cityofpaloaIto.primegov.com/Portal/viewer?id=0&type=7&uid=562ad 105-2798-43bf-9d47-6947f2c40697 Item 14: Staff Report Pg. 2 Packet Pg. 128 of 281 Item 14 Item 14 Staff Report directed staff to coordinate with Caltrain staff to determine the material changes needed for the alternative concepts to address updated standards guiding the substantial changes in the concepts of the alternatives. Subsequently, City staff and consultant conducted several meetings with Caltrain staff to understand how addressing Caltrain comments and adhering to Caltrain Standards will impact the conceptual design alternatives and understand the high-level material changes that may be required to the concepts. A follow-up with the Rail Committee was conducted on March 19 and April 16, 2024 (Staff Report 2402-26758) presented key findings on the impacts to various alternatives and discussed the material changes required for various alternatives. Therefore, staff requested AECOM Consultants to provide a proposal for the additional services and ongoing support as discussed and directed by the Rail Committee at these meetings on a time and material basis, including support from sub -consultants. The scope includes the following major tasks: • Design Criteria update: Update the design criteria based on the new Caltrain standards and comments received on the conceptual plans. • Plans, Profiles, and Sections Update: Update plans for Partial Underpass at Churchill Avenue, Underpass Alternatives at Meadow and Charleston, Viaduct/Hybrid at Meadow and Charleston Crossing to accommodate the future four tracking needs and to accommodate Caltrain comments and concerns on the conceptual plans • Fact Sheets, Matrix, and Renderings Update: Update project materials such as sections, renderings, fact sheets, and matrix to provide materials for community outreach, the Rail Committee, and the City Council review • Additional outreach and Technical Support: Update Virtual townhall to reflect all updates and to conduct additional outreach. FISCAL/RESOURCE IMPACT At the request of the City, the Consultant provided the proposal for the additional scope of work on a time and material basis. Following negotiations between the City and the Consultant, the amendment to the contract is proposed in the amount of $297,206. Funding required for Contract Amendment #6 is available in the FY 2024 Adopted Capital Budget for Railroad Grade Separation Projects at Churchill Avenue (PL 24000) and Meadow Drive/Charleston Road (PL 24001). The existing AECOM Contract including Amendments 1-5 totals $3,596,828. Based on the amount proposed in Contract Amendment #5 of $297,206, the total contract amount for the AECOM Contract would increase to $3,894,034. There is adequate funding available from Measure B grade separation project allocated to these projects to fund this contract amendment. Staff will work with VIA to amend the funding agreement to include 8 https://cityofpaloaIto.primegov.com/Portal/viewer?id=0&type=7&uid=e904b581-a3c4-4aa1-b637-6a9542fe8ecb Item 14: Staff Report Pg. 3 Packet Pg. 129 of 281 Item 14 Item 14 Staff Report these additional tasks. STAKEHOLDER ENGAGEMENT The Rail Committee meetings are held regularly, focusing on ongoing matters related to rail grade separation projects. During study sessions, action items, and public comments, the committee actively seeks input and feedback from the community. Meeting details are communicated to the public through the City calendar and meeting notifications, ensuring transparency and accessibility. As these meetings are open to the public, community members have the opportunity to voice their comments and concerns directly to the rail committee and the City. ENVIRONMENTAL REVIEW The proposed action is part of a planning study for a possible future action, which has not been approved, adopted, or funded and is therefore exempt from the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15262. The future decision to approve the construction of any one of the identified potential alternatives would be subject to CEQA and require the preparation of an environmental analysis. Environmental review and design for the grade separation project will be performed in the subsequent steps of the project development. ATTACHMENTS Attachment A: AECOM, Contract Amendment No. 6 APPROVED BY: Philip Kamhi, Chief Transportation Official Item 14: Staff Report Pg. 4 Packet Pg. 130 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 AMENDMENT NO. 6 TO CONTRACT NO. C18171057 BETWEEN THE CITY OF PALO ALTO AND AECOM TECHNICAL SERVICES, INC. This Amendment No. 6 (this "Amendment") to Contract No. C18171057 (the "Contract" as defined below) is entered into as of May 6, 2024, by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and AECOM TECHINICAL SERVICES, INC., a California corporation, located at 300 Lakeside Drive, Suite 400, Oakland, CA 94612 ("CONSULTANT"). CITY and CONSULTANT are referred to collectively as the "Parties" in this Amendment. RECITALS A. The Contract (as defined below) was entered by and between the Parties hereto to provide program management, enhanced community engagement services, grade separation planning and alternatives analysis, and technical assistance on rail engineering and design. ("Project") and desires to engage a consultant to provide Services in connection with the Project ("Services"), as detailed therein. B. The Parties now wish to amend the Contract in order to (1) increase the total compensation by $Two Hundred Ninety -Seven Thousand Two Hundred Six Dollars ($297,206.00) from Three Million Five Hundred Ninety -Six Thousand Eight Hundred Twenty -Eight Dollars ($3,596,828.00) to Three Million Eight Hundred Ninety -Four Thousand Thirty -Four Dollars ($3,894,034.00) for Services and Additional services not included in the previous scope of work, (2) update Exhibit C-5 Hourly Schedule of Rates; (3)extend the term through April 30, 2025, as detailed herein. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a. Contract. The term "Contract" shall mean Contract No. C18171057 between CONSULTANT and CITY, dated April 23, 2018. Amendment No. 1, dated June 24, 2019 Amendment No. 2, dated June 23, 2020 Amendment No. 3, dated April 23, 2021 Amendment No. 4, dated May 16, 2022 Amendment No. 5, dated April 23, 2024 City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 5 Packet Pg. 131 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 2. "TERM" of the Contract is hereby amended to read as follows: "SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through April 30, 2025, unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. Section 4. "NOT TO EXCEED COMPENSATION" of the Contract is hereby amended to read as follows: "SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit "A" as amended by Exhibits "A-1", "A-2" ,"A-3", "A-4", and "A-5 (referred to collectively as Exhibit "A" or the "Basic Services"), and reimbursable expenses, shall not exceed Three Million Five Hundred Twenty -Nine Thousand and Nine Hundred Eight Dollars ($3,529,908.00). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event Additional Services are authorized, the total compensation for Basic Services, Additional Services, and reimbursable expenses shall not exceed Three Million Eight Hundred Ninety -Four Thousand and Thirty -Four Dollars ($3,894,034.00). The applicable rates and schedule of payment are set out at Exhibit "C- 5", entitled "HOURLY RATE SCHEDULE," which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit "C". CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit "A"." SECTION 4. Exhibit "A-5" to this Amendment (attached hereto and incorporated herein) shall amend, but not replace, Exhibit "A" attached to the original Contract, Exhibit "A-1" attached to Amendment No. 1, Exhibit "A-2" attached to Amendment No. 2, Exhibit "A-3" attached to Amendment 3, and Exhibit "A-4" attached to Amendment 4 to the Contract. References to "Exhibit A" in the Contract shall mean Exhibits "A", "A-1", "A-2", "A-3", "A-4", and "A-5" read together. To the extent the provisions of Exhibit "A-5" directly conflict with original Exhibit "A", Exhibit "A-1", or Exhibit "A-2", or Exhibit "A-3", or Exhibit "A-4" the provisions of Exhibit "A-5" will control. SECTION 5. The following exhibits to the Contract are hereby amended or added to read as set forth in the attachments to this Amendment, which are incorporated in full by this reference: City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 6 Packet Pg. 132 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 a. Exhibit "A-5" entitled "SCOPE OF SERVICES AMENDMENT NO. 6", ADDED b. Exhibit "B" entitled "SCHEDULE OF PERFORMANCE, AMENDMENT NO. 6", AMENDED, REPLACES PREVIOUS c. Exhibit "B-2" entitled "RAILROAD GRADE SEPARATION PROGRAM, AMENDMENT NO. 6", ADDED d. Exhibit "C" entitled "COMPENSATION, AMENDMENT NO. 6", AMENDED, REPLACES PREVIOUS e. Exhibit "C-5" entitled "HOURLY RATE SCHEDULE AMENDMENT NO. 6", AMENDED, REPLACES PREVIOUS SECTION 6. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 7. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 7 Packet Pg. 133 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO City Manager APPROVED AS TO FORM: City Attorney or designee CONSULTANT: AECOM TECHINICAL SERVICES, INC. DocuSigned by: By: Name: Marty Czarnecki Title: Senior Vice President/Authorized Signatory [.-_DocuS By: Name: Allison Hall Title: CFO Americas Attachments: Exhibit "A-5" entitled "SCOPE OF SERVICES AMENDMENT NO. 6", ADDED Exhibit "B" entitled "SCHEDULE OF PERFORMANCE, AMENDMENT NO. 6", AMENDED, REPLACES PREVIOUS Exhibit "B-2" entitled "RAILROAD GRADE SEPARATION PROGRAM, AMENDMENT NO. 6", ADDED Exhibit "C" entitled "COMPENSATION, AMENDMENT NO. 6", AMENDED, REPLACES PREVIOUS Exhibit "C-5" entitled "HOURLY RATE SCHEDULE AMENDMENT NO. 6", AMENDED, REPLACES PREVIOUS City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 8 Packet Pg. 134 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 EXHIBIT A-5 SCOPE OF SERVICES, AMENDMENT NO. 6 (ADDED) This Exhibit "A-5" Additional Scope of Services amends Exhibit "A" Scope of Services, as previously amended by Exhibit "A-1", Exhibit "A-2", Exhibit "A-3"and Exhibit "A-4" should be read together therewith. To the extent the provisions of Exhibit "A-5" directly conflict with original Exhibit "A", Exhibit "A-1", or Exhibit "A-2", or Exhibit "A-3" or Exhibit "A-4" the provisions of Exhibit "A-5" will control. AMENDMENT NO. 6: CONSULTANT will provide services in the project development for conducting additional studies, outreach, and support to City staff at meetings with Rail Committee and the City Council not included in the original scope of work Exhibit A, amended by Exhibit "A-1", Exhibit "A-2", Exhibit "A-3", Exhibit "A- 4", and Exhibit "A-5". This Exhibit "A-5" describes the services that are in addition to Exhibit"A", Exhibit "A-1" Exhibit "A-2", Exhibit "A-3" and Exhibit "A-4". SCOPE OF WORK CONSULTANT will continue to manage the Project, which will include required technical analyses of alternatives and a community and stakeholder engagement process to identify and develop locally- preferred alternatives for modifications to the existing at -grade crossings in Palo Alto at Churchill Avenue, Meadow Drive, and Charleston Road. CONSULTANT will coordinate and manage the project in conjunction with CITY's staff. The tasks anticipated in this supplemental scope of services with descriptions of supplemental servicesfor each task and associated deliverables are included in this amendment to address the Caltrain comments and to update project materials to reflect updates. Task 1. Project Management 1.1 Project Management and Administration For the additional 12 months to the project (April 2024 -April 2025), the CONSULTANT will continue toprovide project management for each task for the duration of the Project. Management activities will consist of administration, coordination, and quality control, as follows: a. Prepare a scope, budget, and updated project schedule. b. Continue to supervise, coordinate, and monitor activities and product City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 9 Packet Pg. 135 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 development forconformance with the scope of services and CITY standards. c. Prepare twelve (12) additional monthly invoices and progress reports. 1.2 Performance and Quality Monitoring CONSULTANT will continue to use a project specific Quality Assurance Plan for technical reviews and detailed checking for work products including the work produced by CONSULTANT's subconsultants. TheCONSULTANT will continue to make sure that all work performed on the project is checked and that all deliverables undergo a quality review before submittal to the CITY. 1.3 Monthly Invoicing, Progress Reports and Schedule CONSULTANT will prepare and update the project schedule based on the supplemental work and it willbe submitted to CITY staff for review and approval. Task 1 Supplemental Deliverables: a. Updated baseline project schedule b. Monthly update of progress against baseline schedule c. Twelve (12) additional monthly invoices with progress reports Task 4. Community Engagement 4.1 Supplemental Meetings CONSULTANT will prepare for and facilitate in -person community outreach meetings. AECOM will print hard copy exhibits to be displayed on easels at the meetings. CONSULTANT will prepare for and attend in -person, Rail Committee and City Council meetings. CONSULTANT will update the virtual reality (VR) room (originally developed in 2020) to display the new exhibits, fact sheets, and evaluation matrix. The original site will be archived for the public to access. Assumptions: • One community meeting will be held (one for Churchill, one for Meadow -Charleston. • AECOM will attend three (3) Rail Committee meetings • AECOM will attend one (1) City Council meeting • Updates to the 3D animations on the VR site are not required. Task 4 Deliverables a. Stakeholder meeting summaries b. Presentation materials for two Rail Committee meeting and one City Council meeting City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 10 Packet Pg. 136 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 Task 6. Identify Recommended Alternatives 6.6 Update Project Plans, Sections, and Profiles to address Caltrain comments In the fall of 2023, Caltrain reviewed the exhibits of the alternatives previously developed by CONSULTANT and the City. Caltrain provided comments based on their current design criteria and rail corridor use policy. In summary, the following input was provided: o Vertical clearance of the underpass structures shall be 16'-6" across the entire width of Caltrain's right of way. Caltrain's previous standard vertical clearance was 15'-6". o The alternatives shall take Caltrain's 4 -track alignment into consideration. Caltrain plans a four (4) track alignment from just south of Churchill Avenue to just north of Meadow Drive. The track alignment may vary depending on the alternative. o Except for the Viaduct and Trench alternatives, Caltrain requires that all structures be designed based on the typical section noted in the figure below to accommodate a maintenance vehicle. o Caltrain reserves the right to use their entire right of way width. Some exceptions can be made on a case by case basis. o The retaining walls for the Meadow-Charleson Hybrid shall be placed to allow for four tracks to be constructed at any location without having to reconstruct the walls. o The centerline of the nearest shoofly track shall be 25 feet from the face of a proposed retaining wall. The previous standard spacing was 10 feet. 6.6.1 Resolve Comments and Update Design Criteria CONSULTANT will review Caltrain's comments and meet with the City and the Caltrain team to discuss the comments and come to a consensus on how the design of the alternatives shall be modified. CONSULTANT will update the project's design criteria document accordingly. Assumptions: • Three (3) meetings with the City and Caltrain. • Caltrain will provide a CAD file of the 4 -track alignment. • Roadway design criteria will remain as previously determined. 6.6.2 Update of the Churchill Partial Underpass Alternative To address Caltrain's comments, CONSULTANT will update the exhibits portraying the plan view geometry (roadway striping, new pavement limits, and bridge limits), roadway profiles, typical sections, and property impacts (if required) for the Churchill Avenue Partial Underpass Alternative. CONSULTANT will revisit the shoofly alignment based on the new, required dimensions, and update the quantities and unit prices based on current (2024) cost data. CONSULTANT will update the Evaluation Matrix and the Fact Sheet accordingly. Assumptions: City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 11 Packet Pg. 137 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 • The number of lanes required on Alma Street and Churchill Avenue will remain as previously determined.., two at -grade, northbound lanes, for example. A more detailed traffic analysis will be performed during the environmental phase to determine if Alma Street can be reduced to one lane in the northbound direction. • Additional exhibits are not required. • Updates to the closure alternatives at Churchill Avenue (Options 1 and 2) are not required. • Updates to the Kellogg Avenue Ped/Bike tunnel and ramps are not required. • Development of the Seale Avenue Ped/Bike tunnel layout is not required. • Two rounds of comments from the City and Caltrain after the revised exhibits are presented. 6.6.3 Update of the Meadow -Charleston (M -C) Hybrid Alternative To address Caltrain's comments, CONSULTANT will update the exhibits portraying the plan view geometry (roadway striping, new pavement limits, and bridge limits), roadway profiles, typical sections, property impacts (if required), and the rail profile for the M -C Hybrid Alternative. CONSULTANT will revisit the shoofly alignment based on the new, required dimensions, and update the quantities and unit prices based on current (2024) cost data. CONSULTANT will update the Evaluation Matrix and the Fact Sheet accordingly. Assumptions: • The number of lanes required on Alma Street, Meadow Drive, and Charleston Road will remain as previously determined. • Additional exhibits are not required. • Development of a separate ped/bike undercrossing is not required. • Two rounds of comments from the City and Caltrain after the revised exhibits are presented. 6.6.4 Update of the Meadow -Charleston (M -C) Viaduct Alternative To address Caltrain's comments, CONSULTANT will update the exhibits portraying the plan view geometry (track alignment, viaduct and retaining wall limits), typical sections, property impacts (if required), and the rail profile for the M -C Viaduct Alternative. CONSULTANT will revisit the shoofly alignment based on the new, required dimensions, and update the quantities and unit prices based on current (2024) cost data. CONSULTANT will update the Evaluation Matrix and the Fact Sheet accordingly. Assumptions: • The number of lanes required on Alma Street, Meadow Drive, and Charleston Road will remain as previously determined. • Additional exhibits are not required. • Two rounds of comments from the City and Caltrain after the revised exhibits are presented. City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 12 Packet Pg. 138 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 6.6.5 Update of the Meadow -Charleston (M -C) Trench Alternative To address Caltrain's comments, CONSULTANT will update the exhibits portraying the plan view geometry (track alignment, retaining wall limits), typical sections, property impacts (if required) for the M -C Trench Alternative. CONSULTANT will revisit the shoofly alignment based on the new, required dimensions, and update the quantities and unit prices based on current (2024) cost data. CONSULTANT will update the Evaluation Matrix and the Fact Sheet accordingly. Assumptions: • The number of lanes required on Alma Street, Meadow Drive, and Charleston Road will remain as previously determined. • An update to the rail profile is not required. • Additional exhibits are not required. • Two rounds of comments from the City and Caltrain after the revised exhibits are presented. 6.6.6 Update of the Meadow -Charleston (M -C) Underpass Alternative To address Caltrain's comments, CONSULTANT will update the exhibits portraying the plan view geometry (roadway striping, new pavement limits, and bridge limits), roadway profiles, typical sections, and property impacts (if required) for the M -C Underpass Alternative. CONSULTANT will revisit the shoofly alignment based on the new, required dimensions, and update the quantities and unit prices based on current (2024) cost data. CONSULTANT will update the Evaluation Matrix and the Fact Sheet accordingly. Assumptions: • The number of lanes required on Alma Street, Meadow Drive, and Charleston Road will remain as previously determined. • Additional exhibits are not required. • Two rounds of comments from the City and Caltrain after the revised exhibits are presented. Task 6 Deliverables a. Updated plans, exhibits and Sections for up to two underpass alternatives, trench, hybrid, and viaduct (Meadow andCharleston) and one partial underpass alternative (Churchill) — Draft and Final b. Final Design Criteria City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 13 Packet Pg. 139 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 c. Presentation materials for Rail Committee meetings and City Council meetings d. Public Engagement outreach materials and Virtual Townhall Update City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 14 Packet Pg. 140 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 EXHIBIT "B" SCHEDULE OF PERFORMANCE, AMENDMENT NO.6 (AMENDED, REPLACES PREVIOUS) CONSULTANT shall perform the Services so as to complete each task within the number of days/weeks specified on Attachment "B" Schedule of Performance. Attachment "B" reflects the currently anticipated schedule.' CONSULTANT will regularly update the schedule in consultation with CITY's Project Manager. The time to complete each task may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. Following are the tentative timelines for the task covered in the amendment # 6 • Update to the VR room: April 15, 2024 • City Council Study Session: April 29, 2024 • Community Outreach Meeting: May 22, 2024 • Complete update to Alternatives: June 30, 2024 • Complete the scope of work for this agreement by Dec 31, 2024 City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 15 Packet Pg. 141 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 EXHIBIT "B-2" RAILROAD GRADE SEPARATION PROGRAM, AMENDMENT NO.6 (ADDED) Task No. Task Detail Estimated Costs 1.0 Project Management $12,000 4.1 Additional Public Engagement $77,818 Resolve Caltrain Comments, Update Design Criteria, and Update Project 6.6 materials for Churchill Underpass, $207,388 Meadow Charleston Hybrid, Viaduct, Trench and Underpass Alternatives $297,206 City of Palo Alto Form Vers.: Aug. 5, 2019 Contract No. C18171057 Amendment No. 3 Item 14: Staff Report Pg. 16 Packet Pg. 142 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 EXHIBIT "C" COMPENSATION, AMENDMENT NO.6 (AMENDED, REPLACES PREVIOUS) 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 budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as Exhibit "C-1" up to the not to exceed budget amount for each task set forth below. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. CITY's Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, and the total compensation for Additional Services do not exceed the amounts set forth in Section 4 of this Agreement. TASK ORIGINAL NOT TO NOT TO NOT TO NOT TO NOT TO CONTRACT EXCEED EXCEED EXCEED EXCEED EXCEED NOT TO AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT EXCEED ADDED OR ADDED BY ADDED BY ADDED BY ADDED BY AMOUNT (SUBTRACTED AMENDMENT AMENDMEN AMENDME AMENDME BY NO2 T NO3 NT NO.4 NT NO.6 AMENDMENT Task 1 (Project Management 1 $225,184.00 $136,825 $48,827 $0 $57,982 $12,000 Task 2 1 Data Collection & 1 $121,117.20 1 $12,360 $0 $0 $0 $0 Task 3 1Convene Technical 1 $51,873.60 1 ($39,806) $0 $0 $0 $0 1Committee Meetings 1 1 Task 4 1Community 1 $285,885.60 $470,050 $79,626 $0 $33,939 $77,818 Task 5 Identify Alternative 1 $177,420.00 1 $0 $0 $0 $0 $0 Task 6 Identify 1 $312,523.20 $387,406 $178,419 $0 $526,122 $207,388 Task 7 1Assist with CAHSR 1 $32,424.00 1 $0 $0 $0 $0 $0 1Analysis Phase 1 1 Task 8 1 Financing Plan 1 $28,032.00 1 $59,290 $0 $0 $0 $0 1Reimbursables and 1 $44,200.00 1 $0 $3,000 $0 $0 $0 1Additional Services 1 0 1 $180,000 $0 $80,000 $104,126 TOTAL CONTRACT $1,278,660.0 $1,206,126 $309,872 $80,000 $722,120 $297,206 MAXIMUM TOTAL City of Palo Alto Form Vers.: Aug. 5, 2019 Contract No. C18171057 Amendment No. 3 Item 14: Staff Report Pg. 17 Packet Pg. 143 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 TOTAL BASIC SERVICES (AMENDMENT NO 6) TOTAL BASIC SERVICES (AMENDMENT NO. 4) TOTAL BASIC SERVICES (AMENDMENT NO. 2) TOTAL BASIC SERVICES (AMENDMENT NO. 1) TOTAL BASIC SERVICES (ORIGINAL CONTRACT) TOTAL BASIC SERVICES (ORIGNAL & AMENDMENTS) Reimbursable Expenses Additional Services (Amendment No.1) Additional Services (Amendment No.3) Additional Services (Amendment No.4) TOTAL Additional Services Maximum BASIC &ADDfIIONALSERVICES (AMENDMENT 1-6) Com pensation REIMBURSABLE EXPENSES Item 14 Attachment A - AECOM, Contract Amendment No. 6 $ 297,206.00 $ 618,044.00 $ 306,872.00 $1,026,126.00 $1,234,460.00 $3,482,708.00 $ 47,200.00 $ 180,000.00 $ 80,000.00 $104,126.00 $ 364,126.00 $ 3,894,034.00 The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto's policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $2,500.00 shall be approved in advance by the CITY's project manager. City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 18 Packet Pg. 144 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 EXHIBIT "C-5" HOURLY RATE SCHEDULE, AMENDMENT NO. 6, (AMENDED, REPLACES PREVIOUS) AECOM Billing Rate Table 2019 Rates Title Rates Principal in Charge/Project Sponsor $319.00 Project Manager $290.00 Project Engineer- Track I Systems $270.00 Structures Manager $261.00 discipline Engineering Manager $258.00 QA/QC Manger $253.00 Deputy /Lead Project Manager $252.00 Project Engineer - RR Coordination $250.00 Project Engineer $249.00 Support Services Manager $240.00 Project Engineer - Geotechnical $232.00 Senior Engineer $227.00 Finance Manager $224.00 Alternative Analysis Manager $209.00 Staff Engineer $206.00 Project Controls $201.00 Project Engineer - Civil $194.00 Project Engineer - Bridge / Ret Walls $191.00 Sr Engineer - Cost Estimating $190.00 Senior Scientist $185.00 Web Developer $185.00 Senior Graphics Designer $180.00 Project Engineer - Cost Estimator $175.00 Scheduler $165.00 Finance Analyst $165.00 Project Engineer - ROW $162.00 Junior Engineer $155.00 Outreach Manager $155.00 Junior Project Controls $149.00 Scientist $144.00 Graphics Designer $144.00 Web Designer $144.00 Sr CADD $134.00 CADD $108.00 Junior Scientist $113.00 Outreach Coordinator $113.00 Senior Administrative Assistant $98.00 Administrative Assistant $88.00 Intern $ 67.00 Reimbursable Items to be Billed Subcontracted Services Cost plus 3% Printing At Cost Miscellaneous Expenses At Cost City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 19 Packet Pg. 145 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 APEX Billing Rate Table 2019 Rates Title Rate Markup I Estimated Rate for Work Plan Principal $283.00 345 $291.49 Outreach Manager $258.00 345 $265.74 Alta Planning + Design Billing Rate Table 2019 Rates Title Rate Markup Estimated Rate Used for Work Plan Senior Principal $339.00 345 $349.17 Principal $283.00 3% $291.49 Principal $258.00 346 $265.74 Principal $230.00 346 $236.90 Principal - Senior Associate $214.00 346 $220.42 Principal - Senior Associate $193.00 346 $198.79 Principal - Senior Associate $187.00 3% $192.61 Principal - Senior Associate $182.00 3% $187.46 Principal - Senior Associate $177.00 3% $182.31 Senior Associate, Associate $170.00 346 $175.10 Senior Associate, Associate $162.00 346 $166.86 Senior Associate, Associate $157.00 346 $161.71 Associate Senior $148.00 3% $152.44 Associate Senior $143.00 3% $147.29 Associate Senior $135.00 3% $139.05 Senior + Level l $119.00 3% $122.57 Senior+ Level l $110.00 3% $113.30 Level I + Level 11 $102.00 3% $105.06 Level I + Level 11 $92.00 3% $94.76 Administration $77.00 34 $79.31 Intern $70.00 34 $72.10 Hexagon Billing Rate Table 2019 Rates Title Rate Markup Estimated Rate Used Presiden₹ $280.00 3% $288.40 Principal $240.00 3% $247.20 Senior II $225.00 3% $231.75 Senior I $210.00 3% $216.30 Associate II $190.00 3% $195.70 Associate I $165.00 3% $169.95 Planner II $150.00 3% $154.50 Engineer II $150.00 3% $154.50 Planner I $125.00 3% $128.75 Engineer I $125.00 3% $128.75 Admin $105.00 3% $108.15 Graphics $105.00 3% $108.15 Senior CAD Tech $95.00 3% $97.85 Technician $75.00 3% $77.25 Intern $75.00 3% $77.25 City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 20 Packet Pg. 146 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 AECOM/UR.S 2020 RATE SCHEDULE The services under this Agreement will be compensated in accordance with the following consultant rate schedule and adjusted annually Name/Position/Title Fully -Burdened Hourly Rates** Principal Professional/Project Director $255 -$478 Senior Project Manager $227 - $347 Project Manager $206 -$284 Lead Project Professional/Engineer $214 - $381 Senior Project Professional/Engineer $163 -$271 Sr. Designer/Lab, Field, or CADD Supervisor $142 -$207 Sr. Technician* $130 -$189 Sr. CADD Technician/Sr. Illustrator/Designer* $130 -$177 Project Professional/Engineer $130 - $207 Project Administrator/Controller $117 -$177 Staff Professional/Engineer $81-$143 Word Processor/Project Assistant/Editor* $71- $141 Technician* $63- $154 CADD Techn icia n/l Ilustrator* $71- $125 Clerk/Administrator/Intern* $38 -5113 'Overtime premium charged at cost where required by law for non-exempt employees Bill rates are computed as actual pay rate at time of service plus current FAR multiplier plus 10% fee (raw labor + 131.94% for FY 2019 plus 10% fee = 255.13%) Salaries are adjusted each January 1, but individual merit or promotional increases may occur at any time. Reimbursable Items to be Billed Subcontracted Services at cost In-house printing (per page) Color $1.00, B/W $.10, no markup Vehicles $90/day, $45/Yz day, no markup Personal vehicles (mileage) Current IRS rate, no markup Other miscellaneous Expenses at cost City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 21 Packet Pg. 147 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 APEX Rilling Rate Table 2020 Rates Estimated Rate Title Rate Markup for Work Plan Principal $291.00 0% $ 299.73 Outreach Manager $266.00 0% $273.98 Alta Planning + Design Billing Rate Table 2020 Rates Title Rate Markup Estimated Rate Used for Work Plan Senior Principal $349.00 0% $349.00 Principal $291.00 0% $291.00 Principal $266.00 0% $266.00 Principal $231.00 0% $231.00 Principal -Senior Associate $220.00 0% $220.00 Principal -Senior Associate $199.00 0% $199.00 Principal - Senior Associate $193.00 0% $193.00 Principal - Senior Associate $187.00 0% $187.00 Principal - Senior Associate $182.00 0% $182.00 Senior Associate, Associate $175.00 0% $175.00 Senior Associate, Associate $167.00 0% $167.00 Senior Associate, Associate $162.00 0% $162.00 Associate Senior $152.00 0% $152.00 Associate Senior $147.00 0% $147.00 Associate Senior $139.00 0% $139.00 Senior+ Level I $123.00 0% $123.00 Senior -F Level I $113.00 0% $113.00 Level I + Level II $105.00 0% $105.00 Level I + Level II $95.00 0% $95.00 Administration $79.00 0% $79.00 Intern $72.00 0% $ 72.00 City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 22 Packet Pg. 148 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 Hexagon Billing Rate Table 2020 Rates Title Rate Markup Estimated Rate Used President $288.00 0% $288.00 Principal $247.00 0% $247.00 Senior II $232.00 0% $232.00 Senior I $216.00 0% $216.00 Associate II $196.00 0% $196.00 Associate I $170.00 0% $170.00 Planner II $155.00 0% $155.00 Engineer 11 $155.00 0% $155.00 Planner 1 $129.00 0% $129.00 Engineer I $129.00 0% $129.00 Admin $108.00 0% $108.00 Graphics $108.00 0% $108.00 Senior CAD Tech $98.00 0% $98.00 Technician $77.00 0% $77.00 Intern $77.00 0% $77.00 Merrill Morris Partners Billing Rate Table 2020 Rates Title Rate Markup Estimated Rate Used for Work Plan Principal Landscape Architect $208.00 0% $0.00 Sr Landscape Architect I $178.00 0% $0.00 Sr Landscape Architect Project Manager I $160.00 0% $0.00 Sr Landscape Project Manager I $160.00 0% $0.00 Landscape Architect Project Manager II $136.00 0% $0.00 Administration $84.00 0% $0.00 City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 23 Packet Pg. 149 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 LVRECO Billing Rate Table 2020 Rates Title Rate Markup Estimated Rate Used for Work Plan Supervising Engineer $197.00 0% $197.00 Senior Engineer II $186.00 0% $186.00 Senior Engineer I $180.00 0% $180.00 Associate Engineer $124.00 0% $124.00 Project Engineer $124.00 0% $124.00 Staff Engineer $96.00 0% $96.00 Staff Engineer I CADD $93.00 0% $93.00 CADD $85.00 0% $55.00 Project Controls I Sr Administrator $74.00 0% $74.00 Principal Professional $116.00 0% $116.00 Supervising Professional II $96.00 0% $96.00 Supervising Professional I $79.00 0% $79.00 Senior Professional III $74.00 0% $74.00 Senior Professional II $64.00 0% $64.00 Senior Professional I $54.00 0% $54.00 Associate Professional III $47.00 0% $47.00 Associate Professional II $42.00 0% $42.00 Associate Professional I $37.00 0% $37.00 Staff Professional III $37.00 0% $37.00 Staff Professional II $32.00 0% $32.00 Staff Professional I $27.00 0% $27.00 Senior Technician III $54.00 0% $54.00 Senior Technician II $42.00 0% $42.00 Senior Technician I $37.00 0% $37.00 Technician III $32.00 0% $32.00 Technician II $27.00 0% $27.00 Technician I $22.00 0% $22.00 Sr Clerical / Tech Editor III $47.00 0% $47.00 Sr Clerical J Tech Editor II $42.00 0% $42.00 Sr Clerical I Tech Editor I $37.00 0% $37.00 Clerical f Tech Editor III $32.00 0% $32.00 Clerical / Tech Editor II $27.00 0% $27.00 Clerical I Tech Editor I $22.00 0% $22.00 City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 24 Packet Pg. 150 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 Table 1. Estimated Cost for Each Meeting with City Council or XCAP AECOM Hexgon Total $326.20 $280.95 $220.98 $206.80 $290.00 Etty Millette Peter Paul Gary Mercurio Litzinger De5tefano Burge Black VieetingPreparation 4 16 20 4 8 52 Attendance 4 4 I 4 4 16 Total Hours 8 20 24 4 12 68 Subtotal Cost $2,609.60 $5,619.00 $5,303.52 $827.20 $3,480.00 $17,839 10% Contingency $1,784 Total (rounded to nearest $1,000) $20,000 AECOM 2021 RATE SCHEDULE The services under this Agreement will be compensated in accordance with the following consultant rate schedule and adjusted annually Name/Position/Title Fully -Burdened Hourly Rates"* Principal Professional/Project Director $289 - $412 Senior Project Manager $228 - $358 Project Manager $208 - $292 Lead Project Professional/Engineer $215 - $394 Senior Project Professional/Engineer $164 - $237 Sr. Designer/Lab, Field, or CADD Supervisor $144 - $188 Sr. Technician* $126 -$188 Sr. CADD Technician/Sr. Illustrator/Designer* $126 - $183 Project Professional/Engineer $126 -$214 Project Administrator/Controller $119 - $183 Staff Professional/Engineer $106 - $132 Junior Professional/Engineer $63 -$107 Word Processor/Project Assistant/Editor* $71 - $145 Technician* $63 -$158 CADD Technician/lllustrator* $71 -$130 Clerk/Administrator/Intern* $38 -$117 * Overtime premium charged at cost where required by law for non-exempt employees ** Bill rates are computed as actual pay rate at time of service plus current FAR multiplier plus 10% fee (raw labor + 130.70% for FY 2020 plus 10% fee = 253.77%) Salaries are adjusted each January 1, but individual merit or promotional increases may occur at any time. City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 25 Packet Pg. 151 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 Hexagon 2021 Billing Rates Professional Classification Rate uer Hour President $290 Principal $250 Senior Associate II $230 Senior Associate I $215 Associate II $195 Associate I $175 Planner/Engineer II $155 Planner/Engineer I $125 Admin/Graphics $110 Senior CAD Tech $95 Technician $75 Direct expenses are billed at actual costs, with the exception of mileage, which is reimbursed at the current rate per mile set by the IRS. Billing rates shown are effectiveJanuary 1, 2021 and subject to change January 1, 2022. City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 26 Packet Pg. 152 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 AECOM/URS 2022 RATE SCHEDULE The services under this Agreement will be compensated in accordance with the following consultant rate schedule and adjusted annually Name/Position/Title Fully -Burdened Hourly Rates** Principal Professional/Project Director $296 - $429 Senior Project Manager $236 - $374 Project Manager $213 - $305 Lead Project Professional/Engineer $223 - $412 Senior Project Professional/Engineer $170 - $247 Sr. Designer/Lab, Field, or CADD Supervisor $149 - $196 Sr. Technician* $131 - $196 Sr. CADD Technician/Sr. Illustrator/Designer* $131 - $191 Project Professional/Engineer $131 - $224 Project Administrator/Controller $121 - $191 Staff Professional/Engineer $109 - $138 unior Professional/Engineer $65 - $112 Word Processor/Project Assistant/Editor* $73 - $153 Technician* $65 - $165 CADD Technician/Illustrator* $73 - $135 Clerk/Administrator/Intern* $38 - $122 * Overtime premium charged at cost where required by law for non-exempt employees ** Bill rates are computed as actual pay rate at time of service plus current FAR multiplierplus 10% fee (raw labor + 130.70% for FY 2020 plus 10% fee = 253.77%) ** Salaries are adjusted each October 1, but individual merit or promotional increases may occur at any time. Reimbursable Items to be Billed Subcontracted Services Cost plus 5% In-house printing (per page) Color $1.00, B/W $.10, no markup Vehicles $90/day, $45/Y2 day, no markup Personal vehicles (mileage) Current IRS rate, no markup Other miscellaneous Expenses At cost City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 27 Packet Pg. 153 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 Hexagon 2024 Billing Rates Professional Classification Rate per Hour President $335 Principal $290 Senior Associate II $270 Senior Associate I $250 Associate II $225 Associate I $200 Planner/Engineer II $170 Planner/Engineer I $140 Admin/Graphics $120 Assistant Planner/Engineer $115 Technician $85 Direct expenses are billed at actual costs, with the exception of mileage, which is reimbursed at the current rate per mile set by the IRS. Billing rates shown are effective January 1, 2024 and subject to change January 1, 2025. City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 28 Packet Pg. 154 of 281 DocuSign Envelope ID: 7F20077D-7549-4095-9872-082B10502BF2 Item 14 Attachment A - AECOM, Contract Amendment No. 6 AECOMJURS 2024 RATE SCHEDULE The services under this Agreement will be compensated in accordance with the following consultant rate schedule and adjusted annually Name/Position/Title Fully -Burdened Hourly Rates *= Principal Professional/Project Director $317 - $505 Senior Project Manager $251 - $409 Project Manager $228- $333 Lead Project Professional/Engineer $258 - $450 Senior Project Professional/Engineer $210 - $277 Sr. Designer/Lab, Field, or CADD Supervisor $159 - $214 Sr. Technician* $142 - $214 Sr. CADD Technician/Sr. Illustrator/Designer* $142- $209 Project Professional/Engineer $137 - $219 Project Administrator/Controller $104 - $209 Staff Professional/Engineer $114 - $150 Junior Professional/Engineer $81- $122 Word Processor/Project Assistant/Editor* $78 - $168 Technician* $71- $181 CADD Technician/Illustrator* $78 - $145 Clerk/Administrator/Intern * $40 - $132 *Overtime premium charged at cost where required by law for non-exempt employees ** Bill rates are computed as actual pay rate at time of service times 2.5377 multiplier Salaries are adjusted each October 1, but individual merit or promotional increases may occur at any time. Reimbursable Items to be Billed Subcontracted Services Cost plus 39% In-house printing (per page) Color $1.00, B/W $,10, no markup Vehicles $90/day, $451A day, no markup Personal vehicles (mileage} Current IRS rate, no markup Other miscellaneous Expenses At cost City of Palo Alto Form Vers.: Aug. 5, 2019 Item 14: Staff Report Pg. 29 Packet Pg. 155 of 281 Item 15 Item 15 Staff Report City Council Staff Report From: City Manager CITY O F Report Type: ACTION ITEMS PALO Lead Department: Planning and Development Services ALTO Meeting Date: May 6, 2024 Report #:2402-2668 TITLE PUBLIC HEARING / QUASI-JUDICIAL. 800 San Antonio Road [23PLN-00010]: Recommendation on Applicant's Request for a Rezone from Service Commercial to Planned Community/Planned Home Zoning (PC/PHZ). The Project Includes Construction of 75 Residential Condominium Ownership Units Including 15 Below -Market Rate Units (20% of the Units) in a Five Story Building with Two Levels of Subterranean Parking. A Subdivision Map will be Required. An Addendum to the Previously Certified Environmental Impact Report for the Housing Incentive Program Expansion and 788 San Antonio Mixed Use Project (SCH # 2019090070) was Prepared. Zoning District: CS (Commercial Service). RECOMMENDATION Staff recommends that Council take the following actions: 1. Consider the Addendum to the previously adopted Environmental Impact Report (Attachment F) 2. Adopt an Ordinance rezoning the subject site from Service Commercial to Planned Community/Planned Home Zoning (Attachment B) as recommended by the Planning & Transportation Commission 3. Adopt the Record of Land Use Action approving the Architectural Review, based on findings and subject to conditions of approval as recommended by the Architectural Review Board (Attachment C) EXECUTIVE SUMMARY The applicant requests approval to rezone two Commercial Service (CS) zoned parcels located at 800 and 808/814 San Antonio Road from Service Commercial (CS) to "Planned Home Zone" (PHZ) in accordance with Palo Alto Municipal Code (PAMC) Chapter 18.38 (Planned Community Zoning). The parcels would be merged and subdivided for condominium purposes under a separate subdivision map application, and the resulting parcel would be redeveloped with a five -story, 75 - unit for -sale, residential building. Fifteen of the units (20% of total units) would be provided as Item 15: Staff Report Pg. 1 Packet Pg. 156 of 281 Item 15 Item 15 Staff Report below -market rate units, including six units provided at a rate affordable to very -low income, five at a rate affordable to low income, and four at a rate affordable to moderate income. Staff has compared the proposed project to the CS development standards and concluded the project includes requests for increases in the maximum floor area, lot coverage, and height. The ARB recommended approval of the project on March 7, 2024, and PTC recommended approval of the project on April 10, 2024. BACKGROUND Requested Entitlements, Findings and Purview The following discretionary applications are being requested and subject to Council purview: • Planned Community (PC/PHZ): The process for evaluating this type of application is set forth in PAMC 18.38. Planned Community is intended to accommodate all types of developments, including combinations of uses appropriately requiring flexibility under controlled conditions not otherwise attainable under other districts. The planned community district is particularly intended for unified, comprehensively planned developments that are of substantial public benefit and which conform with and enhance the policies and programs of the Palo Alto Comprehensive Plan. The application requires initial review by the Planning and Transportation Commission (PTC), followed by review by the Architectural Review Board (ARB). Upon recommendation from the ARB, the draft ordinance for the project is presented along with the development plan to the Planning and Transportation Commission for recommendation to the City Council for final action. • On February 3, 2020, Council unanimously endorsed using Planned Housing Zoning (PHZ) for housing and mixed -use housing projects to help spur housing production. In exchange for deviation from certain standards as allowed under the rezoning, if approved by Council, the project must include at least 20% of the housing units as deed restricted for lower income households. The full Council staff report on this topic is viewable here: https://bit.ly/PHZ-Council Report Prior City Reviews & Action City Council: Prescreening August 15, 2022 Staff report: https://bit.ly/3gxtgnO Minutes: https://bit.ly/45OpNBi PTC: June 14, 2023 Staff report: https://bit.ly/442daCe Minutes: https://bit.ly/4cYTrrb April 10, 2024 Staff report: https://bit. ly/4aQC0a E Video: https://bit.ly/49WZda2 HRB: None ARB: August 17, 2023 Item 15: Staff Report Pg. 2 Packet Pg. 157 of 281 Item 15 Item 15 Staff Report Staff report: https://bit.ly/4dOVUBk Minutes: https://bit.ly/4d0u6x6 March 7, 2024 Staff report: https://bit.ly/4ayS9BA Video: https://bit.ly/49JkUu9 April 4, 2024 (Ad Hoc) Staff report: https://bit.ly/3Q5PYNE This project initially had a Council Prescreening on August 15, 2022. After the project was formally submitted on January 19, 2023, and reviewed by City staff, it was presented to the PTC on 6/14/23. The PTC moved the project forward to the ARB. The ARB reviewed the project on 8/17/23 and provided comments. The applicant revised the plans and after additional staff review, the project returned to the ARB on 3/7/24. As part of the PC review process, Architectural Review (AR, process is set forth in PAMC 18.77.070) is 'bundled' with the development plan associated with the PC/PHZ Ordinance for Council action on the project. The ARB unanimously recommended approval of the PC/PHZ with seven items to be addressed in an Ad Hoc subcommittee. The plans were revised and reviewed by the Ad Hoc on 4/4/24, addressing all but two of the items: 1) Consideration of alternatives for how refuse bins are brought from the below -grade collection room to the staging area (does not affect pick up of refuse), and 2) Ensuring viability of landscaping planting where the planting is above portions of the below -grade parking garage. Staff has incorporated these outstanding items as conditions of approval #4d and #4e. The PTC unanimously recommended approval of the PC/PHZ on April 10, 2024. The PTC commended the project for providing substantially sized units and appreciated the quality of the below market rate units as helpful to families. The Motion for PC/PHZ approval included revising the "mix" of BMR units to count one fewer 2 -bedroom moderate income unit in order to count one additional 3 -bedroom moderate income unit. This distributes the BMR units more proportionally by the building's range of unit sizes. The Motion also included correction of various typos in the Draft Ordinance and Record of Land Use attachments, which have been addressed and incorporated as appropriate in this report's attachments. ANALYSIS Neighborhood Setting and Character The proposed project site is located on the east side of San Antonio Road between Leghorn Road and East Charleston Road. The surrounding uses are mostly one- to two-story buildings with commercial/personal services, office use, and similar uses. The site is adjacent to an approved mixed use, 4 -story building at 788 San Antonio which is currently in the building permit process. Council approved application of the Housing Incentive Program (HIP) to a portion of San Antonio Road between Middlefield Road and E. Charleston Road, including the subject property. The Item 15: Staff Report Pg. 3 Packet Pg. 158 of 281 Item 15 Item 15 Staff Report approved ordinance allowed for higher density residential uses along a portion of the San Antonio Road corridor and is anticipated to change the overall character of the neighborhood in this area from low -density commercial uses to high -density residential uses over time. The environmental analysis for the approved ordinance evaluated a total increase of up to 818 new units within this area. This is the second formal application received within the area evaluated as part of the HIP expansion. There is also a proposed Architectural Review project utilizing the HIP proposed at 824 San Antonio. Additionally, the City is preparing to release a request for proposals to develop an Area Plan for the San Antonio Road Corridor, anticipated to be a 18-24 month effort once it begins later this year. Consistency with the Comprehensive Plan, Area Plans and Guidelines' The Comprehensive Plan includes Goals, Policies, and Programs that guide the physical form of the City. The Comprehensive Plan provides the basis for the City's development regulations and is used by staff to regulate building and development and make recommendations on projects. Further, ARB Finding #1 requires that the design be consistent and compatible with applicable elements of the Palo Alto Comprehensive Plan. This is further discussed in Attachment C. The Comprehensive Plan land use designation for the project site is Service Commercial (CS). The Service Commercial Designation is described in the Comprehensive Plan as: "Facilities providing citywide and regional services and relying on customers arriving by car. These uses do not necessarily benefit from being in high volume pedestrian areas such as shopping centers or Downtown. In some locations, residential and mixed -use projects may be appropriate in this land use category. Examples of Service Commercial areas include San Antonio Road, El Camino Real, and Embarcadero Road northeast of the Bayshore Freeway. Non-residential FARs will range up to 0.4. Consistent with the Comprehensive Plan's encouragement of housing near transit centers, higher -density, multi -family housing may be allowed in specific locations." The project includes high density housing along San Antonio Road, consistent with this land use designation. Additionally, one of the parcels (APN 147-03-043 at 808 San Antonio Road) was included in the 2017-2023 Housing Element Sites Inventory, with an expected capacity of seven units. The proposed project merges parcels to allow for additional capacity. The proposed 75 units exceed the Housing Inventory expectations. The project supports Comprehensive Plan policies to provide affordable housing, infill development, and to promote high -quality design. Zoning Compliance Staff performed a detailed review of the proposed project's consistency with applicable zoning standards. For a PHZ project, the zoning development standards are customized for the building, and therefore this project will be in compliance with zoning through the rezoning process. However, as detailed in the Zoning Comparison Table (Attachment D), there are several aspects of the project that exceed the CS zoning base district development standards, including: • Building height Item 15: Staff Report Pg. 4 Packet Pg. 159 of 281 Item 15 Item 15 Staff Report • Maximum floor area • Maximum lot coverage • Minimum commercial floor area Building Size The project's floor area ratio (FAR) is 3.0:1 where 1:1 is the standard allowable FAR for mixed use buildings, and 2:1 is the standard for HIP projects. Proposed lot coverage is 60% where 50% is standard, and 60'8" height where 50 feet in height is the standard. In general, the additional building volume is necessary to accommodate units with more bedrooms. In the Housing Incentive Program EIR (see Environmental Review section below), it was estimated this site could accommodate approximately 94 units. By providing 75 large units on the same property, including 52 two -bedroom units and 16 three -bedroom units, this project would be able to better serve families. The height increase, equivalent to one story, would not be substantially out of character for the San Antonio Road corridor. Next door, the 788 San Antonio project is approved to be built at 50 ft in height. In the surrounding blocks, the two Marriott hotels are also 50 ft, and the Taube Koret Campus for Jewish Life is approximately 60 ft. Minimum Commercial Space The project proposes 1,078 sf of commercial space, where the standard minimum requirement is 1,500 sf. This is an improvement to the initial submittal, which included no commercial space. The addition of the commercial space will help provide services to the residents of this building, as well as the adjacent buildings planned in the San Antonio Road Housing Incentive Program corridor. No tenant is identified at this time, and the PHZ Ordinance is drafted to allow for a range of pedestrian -oriented commercial uses. Multi -Modal Access & Parki The project includes the full required parking spaces for the 75 residential units. 148 parking spaces are proposed, where 143 are required. 86 of these spaces are provided in 12 independent stacker systems. The below grade garage protrudes approximately 7 feet into the special setback for a portion of the facade, in a manner that is not anticipated to affect future use of the special setback. There is a condition of approval to require ongoing maintenance of the parking stackers. Per PAMC 18.52.040, up to 1,500 sf of ground floor retail uses shall not be counted toward the vehicle parking requirement. Bike parking is provided onsite, in the ground floor bike room, which has access directly from the street as well as from the main lobby. There are also eight (8) short-term bike racks in front of the building. A possible bike pathway across this property was discussed extensively, however, the Office of Transportation is not currently prepared to move forward with a bikeway at this time. Landscaping in the front setback is proposed with future bike access in mind. Item 15: Staff Report Pg. 5 Packet Pg. 160 of 281 Item 15 Item 15 Staff Report Parkland Dedication This project includes more than 50 condominium units; therefore, the Parkland Dedication requirement applies. The applicant requests an exemption to the land dedication, and instead proposes to pay in -lieu fees estimated at over $4.08 million. Staff from Planning & Development Services and Community Services Departments are supportive of this request. For 75 units, the dedication requirement would be 27,450 sf, or 0.63 acres. The project site is 0.88 acres, making on -site dedication unrealistic. Staff was unable to identify an appropriate off -site location, and prefers a minimum size of two acres for new parks. Consistency with Application Findings This project is required to meet the Architectural Review Findings, and the Public Benefit requirements of a PC. The Architectural Review Findings are incorporated into the Draft Record of Land Use Action (Attachment C). The ARB found at the March 7 meeting that the project meets the Findings. This project provides a number of public benefits, as required by a PC project. This includes housing and affordable units per Council direction on PHZs, the commercial space, and planning for future bike infrastructure. Unit Affordabili The applicant proposes to provide six Very -Low Income, five Low Income, and four Moderate Income units; 20% of the total 75 units. The PHZ process offers developers several options to provide affordable units as the "public benefit" of a PC project, as described in the September 21, 2020 Council Staff Report'. Option #2 provides a weighted calculation to incentivize developers to provide very -low and low income units, rather than the minimum moderate units required. Table 1 below calculates weighted values for the BMR units provided, equivalent to approximate 26%. This is in excess of the minimum 20% required for a PHZ project. 800 San Antonio Below Market Rate Unit Calculation Area Median Weighted Number of % of Actual Income Level Income Value Units Units Weighted % Very -low Income 31-50% 1.9 6 8.0% 15% Below Low Income 51-80% 1.2 5 6.7% 8% Moderate Market Rate Units Income 81-120% 0.6 4 5.3% 3% Above Moderate & Typical Units Market Rate 121%+ 0 60 Total 75 20.0% 26.4% 1 September 21, 2020 Council Staff Report - https://bit.ly/PHZ-CounciIReport Item 15: Staff Report Pg. 6 Packet Pg. 161 of 281 Item 15 Item 15 Staff Report At the PTC meeting, the motion included that one more three -bedroom BMR unit be provided and one fewer two -bedroom BMR unit be provided. The applicant has revised the plans to do so, and changed one of the low-income units to be three -bedroom, going beyond what PTC asked to provide a family -sized unit to a lower income bracket. The table below shows that the BMR units are as close to 20% per size of unit as possible considering the unit distribution throughout the building. 800 San Antonio Provided Below Market Rate Unit vs 20% Allocation Total Units BMR Units Provided % 20% BMR 1 -bed 2 -bed 3 -bed 7 52 16 2 10 3 29% 19% 19% 1.4 10.4 3.2 Total 75 15 20% 15 POLICY IMPLICATIONS The subject project includes legislative and discretionary actions that follow prior Council direction and guidance relative to the planned home zoning process. Due to the legislative nature of this application the City Council has board authority in its decision -making capacity. This project located on the San Antonio Road corridor precedes a broader community planning process for this area but provides housing in an area of the City anticipated to see greater housing production. The inclusion of family -sized units, including income restricted units, is consistent with the City's housing element goals. In exchange for greater housing density and deeper affordability, the developer seeks modification to certain development standards as detailed in this report. FISCAL/RESOURCE IMPACT This is a cost -recovery project, the applicant will pay an hourly rate for all staff time put towards this project. The total estimated development impact fees for this project would be $4,956,709 plus the Public Art fee of approximately $350,000 for a total estimate of $5,306,709. STAKEHOLDER ENGAGEMENT The Palo Alto Municipal Code requires notice of this public hearing be published in a local paper and mailed to owners and occupants of property within 600 feet of the subject property at least ten days in advance. Notice of a public hearing for this project was published in the Daily Post on April 26, which is 10 days in advance of the meeting. Postcard mailing occurred on April 24, which is 12 days in advance of the meeting. Public Comments Public comments regarding this project have been received throughout the review of the project, from prescreening to present. No new comments have been received since the PTC Item 15: Staff Report Pg. 7 Packet Pg. 162 of 281 Item 15 Item 15 Staff Report hearing. A summary of the most relevant comments is included below, and all emails received though the publication date of this report are included in Attachment E. • This area lacks bus and bike infrastructure • The building is too tall, too dense, and does not have step -backs on the upper levels • Concern about children safely walking and biking to school, it is unclear what school district the building is located in • Open space should not include a roof deck • Appreciation for below -market rate units • Concerns about dewatering for below grade parking • Desire to increase and improve landscaping to include more tree and native pollinator species • Concern about loss of tree canopy • Encouraged Council to further prioritize a Coordinated Area Plan for the development of this corridor (this comment was received prior to the Cal Poly student project) • Concern about lane closures on San Antonio Road during construction, and potential coordination issues if multiple projects are under construction simultaneously ENVIRONMENTAL REVIEW The subject project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. Specifically, an Addendum to the previously adopted Housing Incentive Program Expansion and 788 San Antonio Road Mixed -Use Project Environmental Impact Report (SCH # 2019090070). The Addendum determined no additional significant environmental impacts will occur as a result of this project, and the project is subject to the previously adopted relevant mitigation measures. The Addendum is available in Attachment F. ATTACHMENTS Attachment A: Location Map Attachment B: PC Ordinance Attachment C: Record of Land Use Action Attachment D: Zoning Comparison Table Attachment E: Correspondence Attachment F: Link to Project Plans and Environmental Documents APPROVED BY: Jonathan Lait, Planning and Development Services Director Item 15: Staff Report Pg. 8 Packet Pg. 163 of 281 chotlgki, 2022-06-13 16:24:25 my of best available sources. (\\cc -maps 22-06- passWmin\Personal\Planning.mdb) 89 to 2016 City of Palo Nlo Item 15: Staff Report Pg. 9 J Packet Pg. 164 of 281 NOT YET ADOPTED Item 15 :achment B - Ordinance Amending Section .08.040 of the Palo Alto Ordinance No. Municipal Code (The Ordinance of the Council of the City of Palo Alto Amendi zoningMap) 18.08.040 of the Palo Alto Municipal Code (The Zoning Map) to Change the Classification of Property Located at 800-814 San Antonio Road from Service Commercial (CS) to PC Planned Community Zone (PC- ) for the Construction of Multifamily Residential Units. The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Declarations. (a) On January 19, 2023, Architect Mark Donahue, on behalf of TS 800 SA, LLC ("Applicant") submitted an application for Rezoning to Planned Community/Planned Home Zoning (PHZ) and Major Architectural Review to redevelop the 800-814 San Antonio Road site with 75 condominium residential units and 1,078 sf of commercial space (the "800 San Antonio Project"). (b) Following Staff Review, the Planning and Transportation Commission (Commission) reviewed the project on June 14, 2023 and recommended the project to the Architectural Review Board. (c) The Architectural Review Board reviewed the project on August 17, 2023 and March 7, 2024; and recommended approval of the project to the City Council. (d) The Planning and Transportation Commission reviewed the project on April 10, 2024; and recommended approval of the project to the City Council. (e) Approval of the Planned Community Project would constitute a project under the provisions of the California Environmental Quality Act of 1970, together with related state and local implementation guidelines promulgated thereunder ("CEQA"). (f) The City is the Lead Agency pursuant to Public Resources Code section 21067 as it has the principal responsibility to approve and regulate the Planned Community Project. (g) The City, in compliance with CEQA, prepared an Environmental Impact Report (EIR) Addendum to provide an assessment of the potential environmental consequences of approving and constructing the 800 San Antonio Project. (h) The Council is the decision -making body for approval of the Planned Community Project. 0160140 20240417_ay16 1 Item 15: Staff Report Pg. 10 Packet Pg. 165 of 281 NOT YET ADOPTED SECTION 2. Amendment of Zoning Map. Item 15 :achment B - Ordinance Amending Section .08.040 of the Palo Alto Municipal Code (The Zoning Map) J Section 18.08.040 of the Palo Alto Municipal Code, the "Zoning Map," is hereby amended by changing the zoning of Subject Property from Service Commercial (CS) to "PC Planned Community Zone ". SECTION 3. Project Description. The Project as a whole is described in the Project Plans. With respect to the Subject Property, the project comprises the uses included in this Ordinance, depicted on the Project Plans, incorporated by reference, including the following components: (a) Demolition of three existing commercial buildings, as described in more detail in the Project Plans, to facilitate the construction of a 5 -story building with 1,078 square feet of retail space, and 75 residential condominium units, including 15 units to be sold at below market rates (BMR) in accordance with the City's BMR guidelines (6 units affordable to Very -Low Income households, 5 units affordable to Low Income households, 4 units affordable to Moderate Income households). SECTION 4. Land Uses. (a) The following land uses shall be permitted: (1) Multiple family residential, subject to BMR requirements stated in the project description. (2) Accessory Facilities and uses customarily incidental to permitted uses (3) Home Occupations, when accessory to permitted residential uses. (b) The following land uses shall be permitted on the ground floor, in an area neither greater nor lesser than approximately 1,078 square feet: (1) Eating and Drinking Services, excluding drive-in and take-out services (2) Retail Services, excluding liquor stores (3) Personal Services (4) Banks and Financial Services SECTION 5. Site Development Regulations and Development Schedule. (a) Development Standards: 0160140 20240417_ayl6 2 Item 15: Staff Report Pg. 11 Packet Pg. 166 of 281 NOT YET ADOPTED Development standards for the Subject Property shall be to the Project Plans. (b) Parking and Loading Requirements: Item 15 :achment B - Ordinance Amending Section .08.040 of the Palo Alto Municipal Code (The Zoning Map) J The Owner shall provide parking and loading as set forth in the Project Plans. (c) Modifications to the Development Plan, Land Uses and Site Development Regulations: Once the project has been constructed consistent with the approved Development Plan, any modifications to the exterior design of the Development Plan or any new construction not specifically permitted by the Development Plan or the site development regulations contained in Section 5 (a) — (b) above shall require an amendment to this Planned Community zone. Any use not specifically permitted by this ordinance shall require an amendment to the PC ordinance. (d) Development Schedule: Construction of the project shall commence within two years of the effective date of this ordinance. Prior to expiration of this timeline, the Owner may seek a one year extension from the Director of Planning and Development Services. All construction and development of the project shall be complete within 3 years of the start of construction. SECTION 6. Public Benefits. (a) Public Benefits: Development of the Project Site under the provisions of the PC Planned Community District will result in public benefits not otherwise attainable by application of the regulations of general districts or combining districts. The public benefits provided by the Project include deed -restricted BMR units in excess of the minimum required, retail commercial space on the ground floor, and space for future expansion of bicycle and pedestrian infrastructure along San Antonio Road. (b) Monitoring of Conditions and Public Benefits: Not later than three (3) years following issuance of a certificate of occupancy and at least every three (3) years thereafter, the Owner shall request that the City review the for compliance with the PC district regulations and the conditions of approval for the associated development. The applicant shall provide adequate funding to reimburse 0160140 20240417_ayl6 3 Item 15: Staff Report Pg. 12 Packet Pg. 167 of 281 NOT YET ADOPTED Item 15 :achment B - Ordinance Amending Section .08.040 of the Palo Alto the City for these costs. If conditions or benefits are fou Municipal Code (The staff, the applicant shall correct such conditions in not irk. Zoning Map) from notice by the City. If correction is not made within the prescribed timeframe, the Director of Planning and Development Services will schedule review of the project before the Planning and Transportation Commission and Council to determine appropriate remedies, fines or other actions. SECTION 7. Environmental Review. An Addendum to the EIR for the Housing Incentive Program (HIP) on San Antonio Road was prepared in accordance with the California Environmental Quality Act. The City Council adopted Resolution No. 9925 certifying the adequacy of the EIR and making findings, including a statement of overriding considerations. // // // // // // // 0160140 20240417_ayl6 4 Item 15: Staff Report Pg. 13 Packet Pg. 168 of 281 NOT YET ADOPTED SECTION 8. Effective Date. Item 15 :achment B - Ordinance Amending Section .08.040 of the Palo Alto Municipal Code (The Zoning Map) J This ordinance shall be effective on the thirty-first day after the date of its adoption (second reading). INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Assistant City Attorney City Manager Director of Planning and Development Services Exhibit A: Subject Property Plat and Legal Description 0160140 20240417_ayl6 5 Item 15: Staff Report Pg. 14 Packet Pg. 169 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP APPROVAL NO. 2024 - RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE APPROVAL FOR 800-808 San Antonio Road Planned Home Zoning Project (23PLN-00010) On May 6, 2024, the Council held a duly noticed public hearing and, after considering all of the evidence presented, approved the Planned Community/Planned Home Zoning application to allow Request for a Rezoning to Planned Community/Planned Home Zoning to Allow the merging of lots 800 and 808 San Antonio Road, to form an 0.88 acre site. The Project will be a 75 unit residential building with 15 BMR units. The building is designed as a 5 story building with four levels of wood framing over a concrete podium superstructure, with two levels of subterranean parking. The Project also includes a common -use interior courtyard and roof deck, as well as balconies and patios, and amenity spaces. In approving the application, the Council make the following findings, determination and declarations: SECTION 1. Background. A. The Request for a Rezoning to Planned Community/Planned Home Zoning to Allow the merging of lots 800 and 808 San Antonio Road, to form an 0.88 acre site. The Project will be a 75 unit residential building with 15 BMR units. The building is designed as a 5 story building with four levels of wood framing over a concrete podium superstructure, with two levels of subterranean parking. The Project also includes a common - use interior courtyard and roof deck, as well as balconies and patios, and amenity spaces, ("The Project"). B. The Project application was initially received on January 19, 2023 and was reviewed by City staff and revised by the applicant. C. Following staff review, the Planning and Transportation Commission reviewed the project on on June 14, 2023. D. The plans were revised, reviewed by Staff, and reviewed by the Architectural Review Board on August 17, 2023. E. Following further revision and staff review, the ARB reviewed the project design and EIR Addendum, on March 7, 2024 and recommended approval. On April 10, 2024 the PTC reviewed the project design and the EIR, and recommended approval. G. On May 6, 2024, the City Council held a duly noticed public hearing, at which evidence was presented and all person were afforded an opportunity to be heard in accordance with the Palo Alto Municipal Code and the Council's Policies and Procedures. After hearing public testimony, the Council voted to approve the project subject to the conditions set forth in Section 7 of this Record of Land Use Action. SECTION 2. Environmental Review. On May 6, 2024, City Council made the decision to adopt the EIR Addendum. In conformance with the California Environmental Quality Act (CEQA), an Environmental Impact Report was certified by the City Council on November 16, 2020. The 800 San Antonio Project Environmental Impact Report (EIR) (State Clearinghouse No. 2019090070) concluded that the proposed project(s) would not have a significant Page 1 of 18 Item 15: Staff Report Pg. 15 Packet Pg. 170 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP effect on the environment with mitigation as proposed. The EIR is available for review on the City's web site: https://www.cityofpaloalto.org/Departments/Planning-Development-Services/Current-Planning/Proiects/800- San-Antonio-Road. All mitigation measures as stated in the approved Mitigation Monitoring and Reporting Program (MMRP) have been incorporated into the conditions of approval. SECTION 3. Planned Community Findings Finding #1: The site is so situated, and the use or uses proposed for the site are of such characteristics that the application of general districts or combining districts will not provide sufficient flexibility to allow the proposed development. The project is consistent with Finding #1 because: The proposed project includes provides larger, family -serving units, as well as additional affordable housing units. This requires exceeding the allowable floor area, lot coverage, and height to achieve. Additionally, to provide this number of family -serving units, there is less available space on site to provide commercial space and parkland dedicated land. The project is otherwise in compliance with Zoning district requirements. Finding #2: Development of the site under the provisions of the PC planned community district will result in public benefits not otherwise attainable by application of the regulations of general districts or combining districts. In making the findings required by this section, the planning commission and city council, as appropriate, shall specifically cite the public benefits expected to result from use of the planned community district. The project is consistent with Finding #2 because: The primary public benefit for this project is additional housing units to assist the City in reaching their Regional Housing Needs Assessment goals. The project proposes 75 units, the majority of which are 2- and 3 -bedrooms to serve families. The project proposes 20% of the units to be designated Below Market Rate, including 6 very -low income, 5 low-income, and 4 moderate -income. Finding #3: The use or uses permitted, and the site development regulations applicable within the district shall be consistent with the Palo Alto Comprehensive Plan, and shall be compatible with existing and potential uses on adjoining sites or within the general vicinity. The project is consistent with Finding #3 because: This project is consistent with the Palo Alto Comprehensive Plan, as described further in Architectural Review Finding #1 below. The surrounding uses are currently mostly one- to two-story buildings with commercial/personal services, office use, and similar uses. The site is adjacent to an approved mixed use, 4 -story building at 788 San Antonio which is currently in the building permit process. This project is located in the Housing Incentive Program corridor, which allows for higher density residential uses along a portion of San Antonio Road and is anticipated to change the overall character of the neighborhood in this area from low -density commercial uses to high -density residential uses over time. SECTION 4. Architectural Review Findi Finding #1: The design is consistent with applicable provisions of the Palo Alto Comprehensive Plan, Zoning Code, coordinated area plans (including compatibility requirements), and any relevant design guides. Page 2 of 18 Item 15: Staff Report Pg. 16 Packet Pg. 171 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP The project is consistent with Finding #1 because: In conformance with the following Comp Plan Goals and Policies, the project will include high quality design compatible with surrounding development. Comp Plan Goals and Policies How project adheres or does not adhere to Comp Plan The Comprehensive Plan land use designation for The project proposes high -density housing in an the site is Service Commercial. area designated for high -density housing. Land Use Element Policy L-1.3 Infill development in the urban This project proposes to redevelop three existing service area should be compatible with its commercial buildings into a single multiple -family surroundings and the overall scale and character residential condominium building within the of the city to ensure a compact, efficient Housing Incentive Program (HIP) area. development Policy L-2.5 Support the creation of affordable This project includes 15 BMR units. housing units for middle to lower income level earners, such as City and school district employees, as feasible. Policy L-2.11 Encourage new development and The proposed building includes a central redevelopment to incorporate greenery and courtyard and rooftop garden. natural features such as green rooftops. Docket Darks. plazas and rain gardens. Policy L-6.1 Promote high -quality design and site The proposed residential building is being planning that is compatible with considered within the context of other projects surrounding development and public being developed in the HIP area, and will meet spaces. the high -quality standards of the Architectural Review Board. Policy L-6.7 Where possible, avoid abrupt While the proposed project is somewhat out -of - changes in scale and density between residential scale with the existing neighbor to the left, it is and non-residential areas and between similar in density and scale to the HIP project residential areas of different densities. To approved for the right side adjacent neighbor, promote compatibility and gradual transitions and other projects proposed for the HIP area. between land uses, place zoning district boundaries at mid -block locations rather than along streets wherever possible. Policy T-1.19 Provide facilities that encourage The building includes sufficient short and long and support bicycling and walking. term bicycle parking. As a PHZ project, the zoning development standards are custom built for the building, and therefore this project will be in compliance with zoning through the approval process. No other design guidelines or documents apply to this location. Finding #2: The project has a unified and coherent design, that: a. creates an internal sense of order and desirable environment for occupants, visitors, and the general community, b. preserves, respects and integrates existing natural features that contribute positively to the site and Page 3 of 18 Item 15: Staff Report Pg. 17 Packet Pg. 172 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP the historic character including historic resources of the area when relevant, c. is consistent with the context -based design criteria of the applicable zone district, d. provides harmonious transitions in scale, mass and character to adjacent land uses and land use designations, e. enhances living conditions on the site (if it includes residential uses) and in adjacent residential areas. The project is consistent with Finding #2 because: There is internal order between the pedestrian entries, car entry, retail space and amenity space. There are separate, defined entrances for the residents and retail tenant. There is no historic character to preserve. The proposed five story building is consistent with the applicable context -based design criteria, and scale, mass, and character is consistent with prior and proposed projects anticipated for the HIP area. Finding #3: The design is of high aesthetic quality, using high quality, integrated materials and appropriate construction techniques, and incorporating textures, colors, and other details that are compatible with and enhance the surrounding area. The project is consistent with Finding #3 because: The project incorporates a variety of materials, including glass, gray and beige equitone panels, blue and brown metal panels, and landscape elements. This palette is appropriate for a residential building, and relates to the adjacent 788 San Antonio project while being distinct. Finding #4: The design is functional, allowing for ease and safety of pedestrian and bicycle traffic and providing for elements that support the building's necessary operations (e.g. convenient vehicle access to property and utilities, appropriate arrangement and amount of open space and integrated signage, if applicable, etc.). The project is consistent with Finding #4 because: The design is functional. The bicycle parking is located at the ground level; the car parking is provided below grade, with driveway access at the northern end of the project site. The tenants will have private balcony space, and communal open space in the courtyard and rooftop garden. The building includes separate trash rooms for the commercial and residential components, and a loading space is located off of San Antonio Road, as well as in the below -grade garage. The primary entrances for the residential and the commercial spaces are well-defined with appropriate area available for signage. Finding #5: The landscape design complements and enhances the building design and its surroundings, is appropriate to the site's functions, and utilizes to the extent practical, regional indigenous drought resistant plant material capable of providing desirable habitat that can be appropriately maintained. The project is consistent with Finding #5 because: The project is consistent with the finding in that the project provides landscaped area in the front, rear, central courtyard, and rooftop garden. Three existing trees, including two protected Coast Live Oak, will be preserved. All plants proposed are low to moderate water use, and most are native or regionally adapted. Finding #6: The project incorporates design principles that achieve sustainability in areas related to energy Page 4 of 18 Item 15: Staff Report Pg. 18 Packet Pg. 173 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP efficiency, water conservation, building materials, landscaping, and site planning. The project is consistent with Finding #6 because: In accordance with the City's Green Building Regulations, the building will satisfy the requirements for CALGreen Mandatory + Tier 2. The project includes a "cool" high albedo membrane roof, electric vehicle charging outlets, and drought tolerant and native landscaping. SECTION 5. Architectural Review Approval Granted. Architectural Review Approval is hereby granted for the Project by the City Council pursuant to PAMC Section 18.77.070 of the Palo Alto Municipal Code, effective May 6, 2024 and subject to the conditions of approval in Section 7 of this Record. SECTION 6. Plan Approval. The plans submitted for Building Permit shall be in substantial conformance with those plans prepared by the applicant titled San Antonio Road Housing, 800/808 San Antonio Road, Palo alto, CA 94303, consisting of 69 pages, uploaded to Accela Citizen Access on April 25, 2024, except as modified to incorporate the conditions of approval in Section 6. A copy of these plans is on file in the Department of Planning and Community Development. The conditions of approval in Section 6 shall be printed on the cover sheet of the plan set submitted with the Building Permit application. SECTION 7. Conditions of Approval. PLANNING DIVISION 1. CONFORMANCE WITH PLANS: Construction and development shall conform to the approved plans entitled, "San Antonio Road Housing, 800/808 San Antonio Road, Palo Alto, CA 94303," uploaded to the Palo Alto Online Permitting Services Citizen Portal on April 25, 2024, as modified by these conditions of approval. 2. BUILDING PERMIT: Apply for a building permit and meet any and all conditions as contained in this document. 3. BUILDING PERMIT PLAN SET: A copy of this cover letter and conditions of approval shall be printed on the second page of the plans submitted for building permit. Project plans submitted for Building permits shall incorporate the following changes: a. Dimension the height of the elevator overrun, not to exceed 15 ft from the height of the roof b. Ensure consistency of all area calculations between the calculation sheets and the floor plans 4. ARB SUBCOMMITTEE: Prior to the issuance of building permits, the applicant shall return to the ARB subcommittee for approval of the following items, to the satisfaction of the Director of Planning and Development Services: a. No projections be allowed above ground into the special setback b. That private and common space be revised to meet the open space requirements c. The hallway adjacent elevator 2 be revised to have fewer bends in the hallway and to have more functional space adjacent the trash storage and elevator Page 5 of 18 Item 15: Staff Report Pg. 19 Packet Pg. 174 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP d. Recommend considering alternate locations of the trash collection area, means of bringing trash to the street staging area, and location of the trash staging area e. Schematic foundation design including consideration of planters, bioswales and secant walls f. More comprehensive landscape plan in the courtyard including provisions for planters, furnishing and pathways through the courtyard g. Provide clerestory windows in the bicycle storage area 5. PROJECT MODIFICATIONS: All modifications to the approved project shall be submitted for review and approval prior to construction. If during the Building Permit review and construction phase, the project is modified by the applicant, it is the responsibility of the applicant to contact the Planning Division/project planner directly to obtain approval of the project modification. It is the applicant's responsibility to highlight any proposed changes to the project and to bring it to the project planner's attention. 6. ENTITLEMENT EXPIRATION. The project approval shall be valid for a period of two years from the date of issuance of the entitlement. If within such one/two years period, the proposed use of the site or the construction of buildings has not commenced, the Planning entitlement shall expire. Application for a one year extension of this entitlement may be made prior to expiration. 7. MITIGATION MONITORING AND REPORTING PROGRAM. The Mitigation Monitoring and Reporting Program (MMRP) associated with the project and attached here as Exhibit B is incorporated by reference and all mitigation measures shall be implemented as described in said document. Prior to requesting issuance of any related demolition and/or construction permits, the applicant shall meet with the Project Planner to review and ensure compliance with the MMRP, subject to the satisfaction of the Director of Planning of Planning and Development Services. 8. LANDSCAPE PLAN. Plantings shall be installed in accordance with the approved plan set and shall be permanently maintained and replaced as necessary. a. The vertical garden green wall shall be maintained, and requires Architectural Review to modify or remove. 9. BASEMENT EXCAVATION: Any retaining wall required for basement excavation shall not prevent the planting and future growth of required landscaping. This shall be review by the Project Planner prior to issuance of a Building permit. 10. NOISE THRESHOLDS ON RESIDENTIAL PROPERTY. In accordance with PAMC Section 9.10.030, No person shall produce, suffer or allow to be produced by any machine, animal or device, or any combination of same, on residential property, a noise level more than six dB above the local ambient at any point outside of the property plane. All noise producing equipment shall be located outside of required setbacks. Page 6 of 18 Item 15: Staff Report Pg. 20 Packet Pg. 175 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP 11. OPEN AIR LOUDSPEAKERS (AMPLIFIED MUSIC). In accordance with PAMC Section 9.12, no amplified music shall be used for producing sound in or upon any open area, to which the public has access, between the hours of 11:00pm and one hour after sunrise. 12. NOISE REPORT AT BUILDING STAGE. At the time of building permit issuance for new construction or for installation of any such interior or exterior mechanical equipment, the applicant shall submit an acoustical analysis by an acoustical engineer demonstrating projected compliance with the Noise Ordinance. The analysis shall be based on acoustical readings, equipment specifications and any proposed sound reduction measures, such as equipment enclosures or insulation, which demonstrate a sufficient degree of sound attenuation to assure that the prescribed noise levels will not be exceeded. 13. NOISE REPORT PRIOR TO INSPECTION. Where the acoustical analysis projected noise levels at or within 5 dB less than the Noise Ordinance limits, the applicant shall demonstrate the installed equipment complies with the anticipated noise levels and the Noise Ordinance prior to final Planning inspection approval. 14. SIGN APPROVAL NEEDED. No signs are approved at this time. All signs shall conform to the requirements of Title 16.20 of the Palo Alto Municipal Code (Sign Code) and shall be subject to approval by the Director of Planning. 15. AFFORDABLE HOUSING REQUIREMENT (OWNERSHIP PROJECT): This project is subject to the affordable housing requirements set forth in Section 16.65.030 of the Palo Alto Municipal Code, and has chosen to exceed it as a part of the Planned Home Zoning (PHZ). Per the PHZ, at least 20% of the units shall be affordable to very low, low, or moderate income such that the income restricted units average out to no more than 80% AMI. The proposed project is required to contain no less than fifteen (15) below market rate units, allocated as shown on the approved plan set. 16. AFFORDABLE HOUSING PLAN AND AGREEMENT. The applicant shall prepare an affordable housing plan. An affordable housing agreement, reviewed and approved by the City of Palo Alto, shall be recorded prior to the approval of any final or parcel map or building permit for the development project (PAMC 16.65.090). 17. BELOW MARKET RATE (BMR) HOUSING. All BMR units constructed under this condition shall be in conformance with the City's BMR Program rules and regulations. A BMR Agreement in a form acceptable to the City Attorney for the 15 BMR units shall be executed and recorded prior to final map approval or building permit issuance, whichever occurs first. Failure to comply with the timing of this condition and any adopted BMR Program rules and regulations shall not waive its later enforcement. 18. TRASH ROOM. The trash room shall be used solely for the temporary storage of refuse and recycling that is disposed on a regular basis and shall be closed and locked during non -business hours. Page 7 of 18 Item 15: Staff Report Pg. 21 Packet Pg. 176 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP 19. REFUSE. All trash areas shall be effectively screened from view and covered and maintained in an orderly state to prevent water from entering into the garbage container. No outdoor storage is allowed/permitted unless designated on the approved plan set. Trash areas shall be maintained in a manner to discourage illegal dumping. 20. MECHANICAL LIFT PARKING. Up to 86 required parking spaces may be provided in a puzzle parking system, which allows independent access to each vehicle. The property owner shall have a maintenance agreement with the lift system manufacturer and the system shall be operational at all times. All new renters/employees shall be given instructions on how to operate the lift system. If the lift system is out of operation for any reason, anyone who is not able to retrieve their vehicle within a 10 -minute period shall be reimbursed by the property owner or their designee for travel expenses up to $50 per occurrence. 21. UTILITY LOCATIONS: In no case shall utilities be placed in a location that requires equipment and/or bollards to encroach into a required parking space. In no case shall a pipeline be placed within 10 feet of a proposed tree and/or tree designated to remain. 22. SUBDIVISION MAP. The Lot Merger and Final Map for Condominium Purposes shall be recorded prior to building permit issuance. 23. REQUIRED COVENANTS, CONDITIONS, AND RESTRICTIONS (CC&Rs). PAMC Section 16.38 provides that all condominium and other "community housing projects" shall submit Covenants, Conditions and Restrictions (CC&R's) to the City Attorney for approval prior to issuance of any Certificate of Occupancy. The City Attorney has developed 13 standard covenants that shall be included in all CC&R's submitted to the City for approval. 24. ESTIMATED IMPACT FEE: Development Impact Fees, currently estimated in the amount of $4,956,743.76 plus the applicable public art fee, per PAMC 16.61.040, shall be paid prior to the issuance of the related building permit. Fees are subject to change per annual Municipal Fee Schedule. 25. REQUIRED PUBLIC ART. In conformance with PAMC 16.61, and to the satisfaction of the Public Art Commission, the property owner and/or applicant shall pay the in -lieu fee equivalent to 1% of the estimated construction valuation (currently estimated at $350,000), prior to obtaining a Building permit. All required artwork shall be installed as approved by the Public Art Commission and verified by Public Art staff prior to release of the final Use and Occupancy permit. 26. IMPACT FEE 90 -DAY PROTEST PERIOD. California Government Code Section 66020 provides that a project applicant who desires to protest the fees, dedications, reservations, or other exactions imposed on a development project must initiate the protest at the time the development project is approved or conditionally approved or within ninety (90) days after the date that fees, dedications, reservations or exactions are imposed on the Project. Additionally, procedural requirements for protesting these development fees, dedications, reservations and exactions are set forth in Government Code Section 66020. IF YOU FAIL TO INITIATE A PROTEST WITHIN THE 90 -DAY PERIOD OR FOLLOW THE PROTEST Page 8 of 18 Item 15: Staff Report Pg. 22 Packet Pg. 177 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP PROCEDURES DESCRIBED IN GOVERNMENT CODE SECTION 66020, YOU WILL BE BARRED FROM CHALLENGING THE VALIDITY OR REASONABLENESS OF THE FEES, DEDICATIONS, RESERVATIONS, AND EXACTIONS. If these requirements constitute fees, taxes, assessments, dedications, reservations, or other exactions as specified in Government Code Sections 66020(a) or 66021, this is to provide notification that, as of the date of this notice, the 90 -day period has begun in which you may protest these requirements. This matter is subject to the California Code of Civil Procedures (CCP) Section 1094.5; the time by which judicial review must be sought is governed by CCP Section 1094.6. 27. INDEMNITY. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the "indemnified parties") from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City for its actual attorneys' fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice. 28. FINAL INSPECTION: A Planning Division Final inspection will be required to determine substantial compliance with the approved plans prior to the scheduling of a Building Division final. Any revisions during the building process must be approved by Planning, including but not limited to; materials, landscaping and hard surface locations. Contact your Project Planner, Emily Kallas at emily.kallas@cityofpaloalto.org to schedule this inspection. BUILDING 29. A building permit is required for the scope of work shown. 30. At building permit submit the following: a. Structural calculations b. Green building compliance c. 124 Energy calculations d. Complete MEP plans e. Accessible building elements (i.e, elevator, bathrooms, etc.) and onsite (i.e., accessible route from public sidewalk, bus stop, entrances, etc.) 31. Submit complete life/fire safety code analysis not limit to type of construction, # of stories, occupancy separation, occupied roof, protection of opening in walls and floors, shaft, elevation lobbies, and exiting. 32. Plumbing calculation shall comply with 2022 CPC. OL shall be based on table T1004.5, CBC. Amend calculation shown on sheet A0.05 prior to submittal. 33. Refer to this link for additional submittal requirements: https://www.cityofpaloaIto.org/files/assets/public/v/3/development-services/building- division/checklists/simplified/c1-new-comm-shell-checklist-07062023.pdf PUBLIC WORKS ZERO WASTE Page 9 of 18 Item 15: Staff Report Pg. 23 Packet Pg. 178 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP 34. Project will be required to submit a salvage survey prior to receiving the building permit. Please anticipate meeting PAMC 5.24 Deconstruction and Construction Materials Management requirements. 35. Ensure the refuse staging area can house three -4 cubic yard bins plus three - 96 gallon carts. Please show bins and carts to scale in the staging area. 36. Refuse truck pull-out spot shall contain signage notifying tenants and other users that parking is not allowed during trash pickup days. 37. The following comments below are part of the Palo Alto Municipality Code. If your scope of work includes internal and external bins then cut -sheets for the color -coded internal and external containers, related color -coded millwork, and it's colored signage must be included in the building plans prior to receiving approval from Zero Waste. Please see below for more details. As per Palo Alto Municipal Code 5.20.108 the site is required to have color -coded refuse containers, related color -coded millwork, and colored signage. The three refuse containers shall include recycle (blue container), compost (green container), and garbage (black container). Applicant shall present on the plan the locations and quantity of both (any) internal and external refuse containers, it's millwork, along with the signage. This requirement applies to any external or internal refuse containers located in common areas such as entrances, conference rooms, open space, lobby, garage, mail room, gym, and etc. except for restrooms, copy area, and mother's room. Millwork to store the color -coded refuse containers must have a minimum of four inches in height worth of color -coding, wrapping around the full width of the millwork. Signage must be color coded with photos or illustrations of commonly discarded items. Restrooms must have a green compost container for paper towels and an optional black landfill container if applicable. Copy area must have either a recycle bin only or all three refuse receptacles (green compost, blue recycle, and black landfill container). Mother's room must minimally have a green compost container and black landfill container. Please refer to PAMC 5.20.108 and the Internal Container Guide. Examples of appropriate signage can be found in the Managing Zero Waste at Your Business Guide. Electronic copies of these signage can be found on the Zero Waste Palo Alto's website, https://www.cityofpaloalto.org/Departments/Public-Works/Zero-Waste/What-Goes- Where/Toolkit#section-2 and hard copies can be requested from the waste hauler, Greenwaste of Palo Alto, (650) 493-4894. PUBLIC WORKS ENGINEERING 38. PUBLIC WORKS APPLICATIONS, FORMS, AND DOCUMENTS: Applicant shall be advised that most forms, applications, and informational documents related to Public Works Engineering conditions can be found at the following link: https://www.cityofpaloaIto.org/Departments/Public-Works/Engineering-Services/Forms-and-Permits 39. LOT LINE REMOVAL/MERGER, CERTIFICATE OF COMPLIANCE: A certificate of compliance shall be reviewed, approved, and recorded with the County Recorder's Office prior to issuance of any grading or building permit(s). The application shall be submitted to Public Works Engineering. 40. LOT LINE REMOVAL/MERGER, THIRD -PARTY REVIEW: The City contracts with a third -party surveyor that will review and provide approval of the map's technical correctness as the City Surveyor, as permitted by Page 10 of 18 Item 15: Staff Report Pg. 24 Packet Pg. 179 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP the Subdivision Map Act. The Public Works Department will forward a Scope & Fee Letter from the third - party surveyor and the applicant will be responsible for payment of the fee's indicated therein, which is based on the complexity of the map. 41. STREETWORK PERMIT: The applicant shall obtain a Streetwork Permit from the Department of Public Works for all public improvements. 42. GRADING AND EXCAVATION PERMIT: A Grading Permit is required per PAMC Chapter 16.28. The permit application and all applicable documents (see Section H of application) shall be submitted to Public Works Engineering. Add the following note: "THIS GRADING PERMIT WILL ONLY AUTHORIZE GENERAL GRADING AND INSTALLATION OF THE STORM DRAIN SYSTEM. OTHER BUILDING AND UTILITY IMPROVEMENTS ARE SHOWN FOR REFERENCE INFORMATION ONLY AND ARE SUBJECT TO SEPARATE BUILDING PERMIT APPROVAL." 43. ROUGH GRADING: provide a Rough Grading Plan for the work proposed as part of the Grading and Excavation Permit application. The Rough Grading Plans shall including the following: pad elevation, elevator pit elevation, ground monitoring wells, limits of over excavation, stockpile area of material, overall earthwork volumes (cut and fill), temporary shoring for any existing facilities, ramps for access, crane locations (if any), tree protection measures, etc. 44. SHORING & TIEBACKS: Provide a shoring plan showing the existing utilities (if needed), to clearly indicate how the new structures will be constructed while protecting the existing utilities (if any). If tiebacks are proposed they shall not extend onto adjacent private property, existing easements or into the City's right- of-way without having first obtained written permission from the private property owners and/or an encroachment permit from Public Works. 45. GEOTECHNICAL ENGINEER STATEMENT: The grading plans shall include the following statement signed and sealed by the Geotechnical Engineer of Record: "THIS PLAN HAS BEEN REVIEWED AND FOUND TO BE IN GENERAL CONFORMANCE WITH THE INTENT AND PURPOSE OF THE GEOTECHNICAL REPORT". 46. CONSTRUCTION DEWATERING: This project requires a dewatering permit during construction due to the groundwater level relative to the depth of excavation. 47. GROUNDWATER CONTAMINATED PLUME: The project shoring system shall utilize a secant cut-off wall (or similar) to ensure compliance with City "groundwater exclusionary techniques" for dewatering, as defined by PAMC 16.28.030(u). 48. ENCROACHMENT PERMIT: Prior to any work in the public right-of-way, the applicant shall obtain an encroachment permit from the Public Works Department for any work that encroaches onto the City right-of-way. 49. LOGISTICS PLAN: A construction logistics plan shall be provided addressing all impacts to the public including, at a minimum: work hours, noticing of affected businesses, bus stop relocations, construction signage, dust control, noise control, storm water pollution prevention, job trailer, contractors' parking, truck routes, staging, concrete pours, crane lifts, scaffolding, materials storage, pedestrian safety, and Page 11 of 18 Item 15: Staff Report Pg. 25 Packet Pg. 180 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP traffic control. All truck routes shall conform to the City of Palo Alto's Trucks and Truck Route Ordinance, Chapter 10.48, and the route map. NOTE: Some items/tasks on the logistics plan may require an encroachment permit. 50. C.3 THIRD -PARTY CERTIFICATION: Applicant shall provide certification from a qualified third -party reviewer that the proposed permanent storm water pollution prevention measures comply with the requirements of Provision C.3 and Palo Alto Municipal Code Chapter 16.11. 51. Submit the following: a. Stamped and signed C.3 data form (September 2019 version) from SCVURPPP. https://scvurppp.org/wp- content/uploads/2019/10/SCVURPPP_C3_Data_Form_September2019_fillable_fina l_9-24- 19. pdf b. Final stamped and signed letter confirming which documents were reviewed and that the project complies with Provision C.3 and PAMC 16.11. 52. C.3 STORMWATER AGREEMENT: The applicant shall enter into a Stormwater Maintenance Agreement with the City to guarantee the ongoing maintenance of the permanent storm water pollution prevention measures. The City will inspect the treatment measures yearly and charge an inspection fee. The agreement shall be executed by the applicant team prior to building permit final. 53. C.3 FINAL THIRD PARTY CERTIFICATION PRIOR TO OCCUPANCY: Within 45 days of the installation of the required storm water treatment measures and prior to the issuance of an occupancy permit for the building, the third -party reviewer shall submit to the City a certification verifying that all the permanent storm water pollution prevention measures were installed in accordance with the approved plans. 54. PAVEMENT RESTORATION: The applicant shall restore the pavement along the entire project frontage, curb -to -curb, by performing a 3.5" grind and overlay. The exact restoration limits will be determined once the resulting road condition is known following completion of heavy construction activities and utility lateral installations, at minimum the extent will be the project frontage. 55. EXISTING EASEMENTS: Provide documentation showing approval from the entities affected by the onsite easements to verify that the work within said easements is permitted. 56. PRIOR TO PUBLIC WORKS FINAL/ACCEPTANCE (STORM DRAIN LOGO): The applicant is required to paint "No Dumping/Flows to Matadero Creek" in blue on a white background adjacent to all onsite storm drain inlets. The name of the creek to which the proposed development drains can be obtained from Public Works Engineering. Stencils of the logo are available from the Public Works Environmental Compliance Division, which may be contacted at (650) 329-2598. Include the instruction to paint the logos on the construction grading and drainage plan. 57. PRIOR TO PUBLIC WORKS FINAL/ACCEPTANCE (RECORD DRAWINGS): At the conclusion of the project applicant shall provide digital as-built/record drawings of all improvements constructed in the public right- of-way or easements in which the City owns an interest. Page 12 of 18 Item 15: Staff Report Pg. 26 Packet Pg. 181 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP TRANSPORTATION 58. All short-term bike parking must be Inverted -U or similar type of 24" wide and 36" high bike racks. Provide minimum 36 -inch spacing between two bike racks. URBAN FORESTRY 59. OF has reviewed the Arborist report which corresponds to the tree inventory provided on sheet T4. The proposed removal of two Ailanthus altissima (this species is exempt from protection) and two protected Quercus ilex trees (tree #5 and #6) which are growing into the fence will be approved for removal at the building permit phase. 60.The replacement value of tree #5 and #6 is 6 new 24" box trees or 4 new 36" box trees of drought tolerant species and at least half the new species to be native. 61.Tree #8, #9, #11 and #12 also appear to be proposed for removal through they are not labeled as such on the tree inventory. In the building permit clarify if trees 8,911 and 12 are being removed ad if so include the replacement numbers in a tree disposition table along with tree #5 and #6 and provide a planting plan with the number of new replacement plantings. If all new replacements will not fit on site, an in - lieu fee of $650 perm unplanted tree may be proposed. WATERSHED PROTECTION The following conditions are required for approval and shall be addressed prior to any future related permit application such as a Building Permit, Excavation and Grading Permit, Certificate of Compliance, Street Work Permit, Encroachment Permit, etc. as further described below. 62. Stormwater treatment measures a. All Bay Area Municipal Regional Stormwater Permit requirements shall be followed. b. Refer to the Santa Clara Valley Urban Runoff Pollution Prevention Program C.3 Handbook (download here: http://scvurppp-w2k.com/c3_handbook.shtml) for details. c. For all C.3 features, vendor specifications regarding installation and maintenance should be followed and provided to city staff. Copies must be submitted to Pam Boyle Rodriguez at pamela.boylerodriguez@cityofpaloalto.org. Addthisbulletasa notetothe buildingplans. d. Staff from Stormwater Program (Watershed Protection Division) may be present during installation of stormwater treatment measures. Contact Pam Boyle Rodriguez, Stormwater Program Manager, at (650) 329-2421 before installation. Add this bullet as a note to building plans on Stormwater Treatment (C.3) Plan. 63. Bay -friendly Guidelines (rescapeca.org) - Add these bullets as a note to the building plans. a. Do not use chemicals fertilizers, pesticides, herbicides or commercial soil amendment. Use Organic Materials Review Institute (OMRI) materials and compost. Refer to the Bay -Friendly Landscape Guidelines: http://www.stopwaste.org/resource/brochures/bay-friendly-landscape- guidelines-sustainable-practices-landscape-professional for guidance. Page 13 of 18 Item 15: Staff Report Pg. 27 Packet Pg. 182 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP b. Avoid compacting soil in areas that will be unpaved. 64. Stormwater quality protection a. Temporary and permanent waste, compost and recycling containers shall be covered to prohibit fly -away trash and having rainwater enter the containers. b. Drain downspouts to landscaping (outward from building as needed). c. Drain HVAC fluids from roofs and other areas to landscaping. d. Offsite downgrade storm drain inlets shall also be identified on this plan set and protected. If City staff removes protection from an inlet in the ROW during a rain event, the contractor shall replace the inlet protection by the end of the following business day. 65. All proposed Stormwater treatment measures should have a detail on this detail sheet. Provide a standard detail for the pervious pavers ELECTRICAL UTILITIES 66. Joint trench plans to be finalized during building permit application WATER -GAS -WASTEWATER UTILITIES PRIOR TO ISSUANCE OF DEMOLITION PERMIT 67. The applicant shall submit a request to disconnect utility services and remove meters. The utility demo is to be processed within 10 working days after receipt of the request. The demolition permit will be issued by the building inspection division after all utility services and/or meters have been disconnected and removed. FOR BUILDING AND OTHER CITY'S PERMITS (WGW Utility Engineering) 68. The applicant shall obtain the latest fire hydrant flow tests and review them with the City of Palo Alto Fire Department for all fire department requirements before the Building Department review process. 69. The applicant shall submit a Utility Plan showing how the new development will be served by CPA public utilities. Please amend the Utility Plan to include the size and location of the proposed water and sewer underground utilities including the domestic water service, fire service, domestic and irrigation meters, backflow preventers (labeled the type of backflow devices, RPPA, and RPDA), sewer lateral, and City's sewer cleanout. 70. Domestic water meter layout: The applicant needs to provide an estimated domestic water load in G.P.M. to design the water service and meter size. A 3" or 4" water meter will require a 4'x8' water meter set with a 2" by-pass per DWG. NO. WD -04. The vault shall be located on private property inside a public utility easement. The applicant's engineer shall obtain, prepare, and record with the county of Santa Clara, and provide the utility engineering section with copies of the public utilities easement on the front of the property adjacent to the City right of way at the water point of service. Page 14 of 18 Item 15: Staff Report Pg. 28 Packet Pg. 183 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP 71. Per City of Palo Alto Utilities Rules & Regulation 15 Metering, the City will provide a master meter at an approved location near the public water main and right of way to serve the whole development or building. The multiunit residential structure must comply with California Water Metering for Multi -unit Structures Water Code as amended by law Senate Bill 7 (Water Code, Division 1, Chapter 8, Article 5, Section 537-537.5) that requires individual water meters or submeters for each unit for structures constructed after January 1, 2018. 72. A capacity study water and wastewater report prepared by the developer's licensed Engineer shall be submitted to the City of Palo Alto Utilities Engineering Department. The applicant's engineer shall submit flow calculations and system capacity study showing that the on -site and off -site water and sanitary sewer mains and services will provide the domestic, irrigation, fire flows, and wastewater capacity needed to service the development and adjacent properties during anticipated peak flow demands. Field testing may be required to determine current flows and water pressures on the existing water main. Calculations must be signed and stamped by a registered civil engineer. 73. The applicant is required to perform, at his/her expense, a flow monitoring study of the existing sewer main to determine the remaining capacity. The report must include existing peak flows or depth of flow based on a minimum monitoring period of seven continuous days or as determined by the senior wastewater engineer. The study shall meet the WGW engineering section's requirements and approval. No downstream overloading of the existing sewer main will be permitted. 74. The applicant shall submit a completed water -gas -wastewater service connection application - load sheet for the City of Palo Alto Utilities. The applicant must provide all the information requested for utility service demands (water in fixture units/g.p.m., fire in g.p.m., and sewer in fixture units/g.p.d.). The applicant shall provide the new loads and the combined/total loads. 75. The applicant shall submit improvement plans for utility construction. The plans must show the size and location of all underground utilities within the development and the public right of way including meters, backflow preventers, fire service requirements, sewer mains, sewer cleanouts, sewer lift stations, and any other required utilities. Plans for new wastewater laterals and mains need to include new wastewater pipe profiles showing existing potentially conflicting utilities, especially storm drain pipes, and electric and communication duct banks. Existing duct banks need to be daylighted by potholing to the bottom of the ductbank to verify cross section prior to plan approval and starting lateral installation. Plans for new storm drain mains and laterals need to include profiles showing existing potential conflicts with sewer, water, and gas. 76. The applicant must show on the site plan the existence of any auxiliary water supply, (i.e. water well, gray water, recycled water, rain catchment, water storage tank, etc.). Page 15 of 18 Item 15: Staff Report Pg. 29 Packet Pg. 184 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP 77. The applicant shall be responsible for installing and upgrading the existing utility mains and/or services, laterals as necessary to handle anticipated peak loads. This responsibility includes all costs associated with the design and construction for the installation/upgrade of the utility mains and/or services/laterals. 78. An approved reduced pressure principle assembly (RPPA backflow preventer device) is required for all existing and new water connections from Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive. The RPPA shall be installed on the owner's property and directly behind the water meter within 5 feet of the property line. RPPA for domestic service shall be lead-free. Show the location of the RPPA on the plans. 79. An approved reduced pressure detector assembly (RPDA backflow preventer device, STD. WD -12A or STD. WD -12B) is required for all existing and new fire water connections from Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive. The RPDA shall be installed on the owner's property and directly behind the City's fire service, within 5' (feet) of the property line or City Right of Way. An approved reduced pressure detector assembly (RPDA backflow preventer device, STD. WD -12A or STD. WD -12B) is required for all existing and new fire water connections from Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive. The RPDA shall be installed on the owner's property and directly behind the City -owned meter, within 5' (feet) of the property line or City Right of Way. 80. All backflow preventer devices shall be approved by the WGW engineering division. Inspection by the city inspector is required for the supply pipe between the meter and the assembly. 81. The applicant shall pay the capacity fees and connection fees associated with new utility service/s or added demand on existing services. The approved relocation of services, meters, hydrants, or other facilities will be performed at the cost of the person/entity requesting the relocation. 82. A new water service line installation for fire system usage is required. Show the location of the new water service on the plans. The applicant shall provide the engineering department with a copy of the plans for the fire system including all fire department's requirements. 83. Each parcel shall have its own water service and sewer lateral connection shown on the plans. 84. A new sewer lateral is required, and a profile of the sewer lateral is required showing any possible conflicts with electric/communications duct banks or other utilities. The proposed two (2) 6" sewer laterals are to be reviewed during the building permit process. 85. All existing water, and gas. and wastewater services/laterals that will not be reused shall be abandoned at the main per the latest WGW utility standards. Page 16 of 18 Item 15: Staff Report Pg. 30 Packet Pg. 185 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP 86. Utility vaults, transformers, utility cabinets, concrete bases, or other structures cannot be placed over existing water, gas, or wastewater mains/services. Maintain 1' horizontal clear separation from the vault/cabinet/concrete base to existing utilities as found in the field. If there is a conflict with existing utilities, Cabinets/vaults/bases shall be relocated from the planned location as needed to meet field conditions. Trees may not be planted within 10 feet of existing water, gas, and wastewater mains/laterals/water services/or meters. New water or wastewater services/laterals/meters may not be installed within 10' of existing trees. Maintain 10' between new trees and new water and wastewater services/laterals/meters. 87. The applicant shall provide to the WGW Utility Engineering department a copy of the plans for the fire system including all fire department's requirements prior to the actual service installation. 88. All utility installations shall be in accordance with the City of Palo Alto utility standards for water & wastewater. 89. Note to Engineer: The proposed irrigation service and meter are to be tapped off from the proposed 4" HDPE domestic water service per CPAU's latest standards. SECTION 7. Term of Approval. The approval shall be valid for two years from the original date of approval. PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED: Director of Planning and Development Services APPROVED: Mayor APPROVED AS TO FORM: Deputy City Attorney Page 17 of 18 Item 15: Staff Report Pg. 31 Packet Pg. 186 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP PLANS AND DRAWINGS REFERENCED: 1. Those plans prepared by the applicant titled San Antonio Road Housing, 800/808 San Antonio Road, Palo alto, CA 94303, consisting of 69 pages, uploaded to Accela Citizen Access on April 25, 2024, except as modified to incorporate the conditions of approval in Section 6. 2. The Mitigation Monitoring and Reporting Program Page 18 of 18 Item 15: Staff Report Pg. 32 Packet Pg. 187 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP CITY OF PALO ALTO PROJECT NAME MITIGATION MONITORING + REPORTING PROGRAM 800 San Antonio PHZ Project APPROVED BY Emily Foley, City of Palo Alto APPLICANT/OWNER TS 800 SA LLC Yorke Lee 12230 Saratoga Sunnyvale Rd Saratoga, CA 95050 yorkelee@timespacegroup.com APPLICATION 23PLN-00010 NUMBER The Addendum to the Housing Incentive Program Expansion and 788 San Antonio Road Mixed -Use Project Environmental Impact Report (SCH # 2019090070) identifies the mitigation measures that must be implemented to reduce the impacts associated with the project. The California Environmental Quality Act (CEQA) was amended in 1989 to add Section 21081.6, which requires a public agency to adopt a monitoring and reporting program for assessing and ensuring compliance with any required mitigation measures applied to proposed development. As stated in section 21081.6(a)(1) of the Public Resources Code: ... the public agency shall adopt a reporting or monitoring program for the changes made to the project or conditions of project approval, adopted in order to mitigate or avoid significant effects on the environment. Section 21081.6 also provides general guidelines for implementing mitigation monitoring programs and indicates that specific reporting and/or monitoring requirements, to be enforced during project implementation, shall be defined as part of adopting an IS-MND. The mitigation monitoring table lists those mitigation measures that would be included as conditions of approval for the project. To ensure that the mitigation measures are properly implemented, a monitoring program has been devised which identifies the timing and responsibility for monitoring each measure. City of Palo Alto • Mitigation Monitoring + Reporting Program P a g e I 1 Item 15: Staff Report Pg. 33 Packet Pg. 188 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP CITY OF PALO ALTO MITIGATION MONITORING + REPORTING PROGRAM Environmental Mitigation Measure Impact Responsible for Timing of Oversight of Implementation Compliance Implementation AIR QUALITY AQ-1 Construction Mitigation. For individual projects in the Project HIP expansion area that exceed the BAAQMD air Applicant/verified pollutant and precursor screening levels, the project in the field by the proponent for that particular development shall conduct Development a quantifiable analysis to measure construction -related Services impacts to air quality for all construction phases as Department described in the BAAQMD CEQA Guidelines (2017). If Building Division project construction would exceed BAAQMD thresholds for criteria pollutants, the City shall require the construction contractor(s) to implement additional BAAQMD-approved measures beyond Basic Control requirements and demonstrate that such measures would reduce emissions to below thresholds. Additional measures for development projects that exceed significance criteria may include, but are not limited to: 1. All exposed surfaces shall be watered at a frequency adequate to maintain minimum soil moisture of 12 percent. Moisture content can be verified by lab samples or moisture probe. 2. All excavation, grading, and/or demolition activities shall be suspended when average wind speeds exceed 20 mph. 3. Wind breaks (e.g., trees, fences) shall be installed on the windward side(s) of actively disturbed areas of construction. Wind breaks should have at maximum 50 percent air porosity. 4. Vegetative ground cover (e.g., fast -germinating native grass seed) shall be planted in disturbed Prior to issuance City of Palo Alto of grading Development permit and Services periodically Department during Building Division construction City of Palo Alto • Mitigation Monitoring + Reporting Program 1 2 Item 15: Staff Report Pg. 34 Packet Pg. 189 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP Environmental Responsible for Timing of Oversight of Impact Mitigation Measure Implementation Compliance Implementation areas as soon as possible and watered appropriately until vegetation is established. 5. The simultaneous occurrence of excavation, grading, and ground -disturbing construction activities on the same area at any one time shall be limited. Activities shall be phased to reduce the amount of disturbed surfaces at any one time. 6. All trucks and equipment, including their tires, shall be washed off prior to leaving the site. 7. Site accesses to a distance of 100 feet from the paved road shall be treated with a 6 to 12 -inch compacted layer of wood chips, mulch, or gravel. 8. Minimizing the idling time of diesel -powered construction equipment to two minutes. 9. The project shall develop a plan demonstrating that the off -road equipment (more than 50 horsepower) to be used in the construction project (i.e., owned, leased, and subcontractor vehicles) would achieve a project wide fleet - average 20 percent NOX reduction and 45 percent PM reduction compared to the most recent ARB fleet average. Acceptable options for reducing emissions include the use of late model engines, low -emission diesel products, alternative fuels, engine retrofit technology, after -treatment products, add-on devices such as particulate filters, and/or other options as such become available. 10. Use low VOC (i.e., ROG) coatings beyond the local requirements (i.e., Regulation 8, Rule 3: Architectural Coatings). 11. Requiring that all construction equipment, diesel trucks, and generators be equipped with Best Available Control Technology for emission reductions of NOX and PM. City of Palo Alto • Mitigation Monitoring + Reporting Program 1 3 Item 15: Staff Report Pg. 35 Packet Pg. 190 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP Environmental Responsible for Timing of Oversight of Impact Mitigation Measure Implementation Compliance Implementation 12. Limiting import/export of soils or limiting the number of hauling trips per day to reduce emissions of NOX associated with hauling truck trips. 13. Phasing construction activities to reduce daily equipment use. BIOLOGICAL RESOURCES BIO-1 Nesting Bird Surveys and Avoidance — HIP expansion Project Applicant/ Prior to City of Palo Alto area. Construction, grading, site preparation and other verified in the by initiation of Development ground -disturbing activities required for development the Development construction Services allowed by the proposed HIP expansion that would Services activities Department involve vegetation or tree removal shall be prohibited Department Building Division during the general avian nesting season (February 1— Building Division August 31), if feasible. If nesting season avoidance is not feasible, the applicant shall retain a qualified biologist, as approved by the City of Palo Alto, to conduct a preconstruction nesting bird survey to determine the presence/absence, location, and activity status of any active nests on or adjacent to the development site. The extent of the survey buffer area surrounding the site shall be established by the qualified biologist to ensure that direct and indirect effects to nesting birds are avoided. To avoid the destruction of active nests and to protect the reproductive success of birds protected by the MBTA and CFGC, nesting bird surveys shall be performed not more than 14 days prior to scheduled vegetation clearance and structure demolition. In the event that active nests are discovered, a suitable buffer (typically a minimum buffer of 50 feet for passerines and a minimum buffer of 250 feet for raptors) shall be established around such active nests and no construction shall be allowed within the buffer areas until a qualified biologist has determined that the nest is no longer active (i.e., the nestlings have fledged and are no longer reliant on the nest). No ground disturbing activities shall occur within this buffer until the qualified biologist has confirmed that breeding/nesting is completed and the City of Palo Alto • Mitigation Monitoring + Reporting Program 14 Item 15: Staff Report Pg. 36 Packet Pg. 191 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP Environmental Mitigation Measure Impact young have fledged the nest. Nesting bird surveys are not required for construction activities occurring between August 31 and February 1. B10-2 Special -Status Plant Species Botanical Surveys. A qualified biologist shall conduct a protocol level botanical survey, including a site visit during the blooming period of the target species in March through July. If the CRPR 1 rank plant is found, the plants shall be avoided by installing protective fencing and warning construction personnel of their presence through the WEAP training. If special -status plants species cannot be avoided, impacts shall be mitigated at a minimum ratio of 1:1 (number of acres or individuals restored to number of acres or individuals impacted). A restoration plan shall be prepared and submitted to the City for review and approval and to CDFW for review. The restoration plan shall include, at a minimum, the type and area of habitat to be established, restored, enhanced, and/or preserved; goals and objectives of the mitigation project; a monitoring plan including performance standards and success criteria; and maintenance activities to occur during monitoring. The applicant shall implement the measures prior to commencement of ground disturbance, tree removal or construction. CULTURAL RESOURCES CUL-1 Historic Resource Evaluation. For future projects in the HIP expansion area that would involve demolition or modification of structures over 45 years in age, a Historic Resources Evaluation (HRE) shall be prepared by a qualified professional to determine the structure's eligibility for listing on the local or state historic registers. The report shall be submitted to the Planning Director and will be utilized by staff in their evaluation of the project and CEQA review. If the structure is determined to be eligible for listing on the local or state register, Mitigation Measure CUL-2 shall be implemented. Responsible for Timing of Implementation Compliance Project Applicant/ verified by the Development Services Department Building Division Prior to initiation of Oversight of Implementation City of Palo Alto Development construction Services activities; during Department restoration if required Project Applicant/ Prior to verified by the Entitlement Development Approval Services Department City of Palo Alto Development Services Department City of Palo Alto • Mitigation Monitoring + Reporting Program P a g e 1 5 Item 15: Staff Report Pg. 37 Packet Pg. 192 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP Environmental Responsible for Timing of Impact Mitigation Measure Implementation Compliance CR-1 Worker's Environmental Awareness Program (WEAP). For all development subject to the proposed HIP expansion, a qualified archaeologist shall be retained who meets the Secretary of the Interior's Professional Qualifications Standards for archaeology to conduct WEAP training for archaeological sensitivity for all construction personnel prior to the commencement of ground disturbing activities. Archaeological sensitivity training should include a description of the types of cultural resources that may be encountered, cultural sensitivity issues, regulatory issues, and the proper protocol for treatment of the materials in the event of a find. CR-2 Unanticipated Discovery of Cultural or Tribal Cultural Resources. For all development subject to the proposed HIP expansion, in the event that archaeological resources are unearthed during project construction, all earth - disturbing work near the find must be temporarily suspended or redirected until an archaeologist meeting the Secretary of the Interior's Professional Qualification Standards for archaeology (NPS 1983) has evaluated the nature and significance of the find. If the discovery proves to be significant under CEQA, additional work, such as preservation in place or archaeological data recovery, shall occur as required by the archeologist in coordination with City staff and descendants and/or stakeholder groups, as warranted. Once the resource has been properly treated or protected, work in the area may resume. A Native American representative shall be retained to monitor mitigation work associated with Native American cultural material. GEOLOGY/SOILS GEO-1 Geotechnical Investigation — HIP expansion area. Prior to approval of grading permits for a building or structure associated with the development allowed by the HIP expansion, a detailed final geotechnical investigation shall be performed to identify significant geotechnical Project Applicant/ verified by the Development Services Department Oversight of Implementation Prior to ground City of Palo Alto disturbance Development Services Department Project Applicant/ During ground City of Palo Alto verified by the disturbing Development Development activities Services Services Department Department Project Applicant/ Prior to issuance City of Palo Alto verified by the of building Development Development permit Services Services Department City of Palo Alto • Mitigation Monitoring + Reporting Program '' a g e 1 6 Item 15: Staff Report Pg. 38 Packet Pg. 193 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP Environmental Impact GEO-4 Mitigation Measure constraints on the proposed development. The report shall develop formal recommendations for project design and construction, including site grading/soil preparation and foundation design. Among other components, the report shall include a quantitative evaluation of liquefaction susceptibility including projected levels of post -liquefaction settlement; an evaluation of soil shrink - swell potential; and an investigation of compressible soils that may be prone to settlement/subsidence. The report shall be provided by the applicant to the City of Palo Alto for review and approval and to ensure that foundations designed for all proposed structures are appropriate and meet code requirements. The geotechnical engineer of record shall also review the final grading, drainage, and foundation plans to confirm incorporation of the report recommendations and field monitoring during project construction shall be performed to verify that the work is performed as recommended. Responsible for Timing of Implementation Compliance Department Building Division Discovery of Paleontological Resources — HIP expansion Project Applicant/ During area. Construction activities associated with the verified by the construction development allowed under the HIP expansion shall Development activities adhere to the following measures. Services Ground Disturbance. For ground -disturbing Department activities for projects associated with the HIP expansion, in the event that an unanticipated fossil discovery is made, then in accordance with SVP (2010) guidelines, it is the responsibility of any worker who observes fossils within the project site to stop work in the immediate vicinity of the find and notify a qualified professional paleontologist who shall be retained to evaluate the discovery, determine its significance and if additional mitigation or treatment is warranted. Work in the area of the discovery will resume once the find is properly documented and authorization is given to resume construction work. Any significant paleontological resources found during Oversight of Implementation City of Palo Alto Development Services Department City of Palo Alto • Mitigation Monitoring + Reporting Program P a g e 1 7 Item 15: Staff Report Pg. 39 1 Packet Pg. 194 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP Environmental Responsible for Timing of Oversight of Impact Mitigation Measure Implementation Compliance Implementation construction monitoring will be prepared, identified, analyzed, and permanently curated in an approved regional museum repository. 2. Excavation Below 18 Feet. Prior to the commencement of grading and excavation below a depth of 18 feet for any project associated with the HIP expansion, applicants shall retain a qualified paleontologist approved by the County to monitor grading and excavation. Monitoring onsite shall occur whenever grading activities are occurring. Additional monitors in addition to one full-time monitor may be required to provide adequate coverage if earth -moving activities are occurring simultaneously. Any paleontological resources discovered by construction personnel or subcontractors shall be reported immediately to the paleontologist. In the event undetected buried resources are encountered during grading and excavation, work shall be halted or diverted from the area and the paleontologist shall evaluate the resource and propose appropriate mitigation measures. Measures may include testing, data recovery, reburial, archival review and/or transfer to the appropriate museum or educational institution. All testing, data recovery, reburial, archival review or transfer to research institutions related to monitoring discoveries shall be determined by the qualified paleontologist and shall be reported to the City. HAZARDS HAZ-1 Site Risk Management Plan — HIP expansion area. Prior Project Applicant/ Prior to issuance City of Palo Alto to issuance of permits allowing groundwater dewatering verified by the of grading Development or earth -disturbing activity, the developer shall prepare a Development permit Services site risk management plan (SRMP). The SRMP will Services Department address known and unknown environmental issues that Department may be encountered during development. The plan shall Building Division identify appropriate measures to be followed when City of Palo Alto • Mitigation Monitoring + Reporting Program P a g e 1 8 Item 15: Staff Report Pg. 40 Packet Pg. 195 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP Environmental Responsible for Timing of Oversight of Impact Mitigation Measure Implementation Compliance Implementation impacted soil and groundwater are encountered during demolition, excavation, dewatering, and construction. This includes health and safety measures to reduce exposure to potentially impacted soil and groundwater for construction workers and dust control measures to reduce exposure to contaminated dust particles for nearby residents. Health and safety measures shall include the required personal protective equipment (PPE) to be used by site personnel, including action levels and decision criteria for upgrading the levels of PPE. The SRMP shall also identify personnel to be notified, emergency contacts, and a sampling protocol if impacted media is encountered. The excavation and demolition contractors shall be made aware of the possibility of encountering known and unknown hazardous materials including impacted soil and groundwater; and shall be provided with appropriate contact and notification information. The plan shall include a provision stating at what point it is safe to continue with the excavation or demolition, and identify the person authorized to make that determination. In addition, the SRMP shall include measures for the appropriate handling and profiling of impacted soil and groundwater to be removed from the project site and disposed offsite. Removal, transportation, and disposal of impacted soil and groundwater shall be performed in accordance with applicable federal, state, and local laws, regulations, and ordinances. The SMRP shall be submitted to the City of Palo Alto for review and approval. NOISE N-1 Construction -Related Noise Reduction Measures. The Project Applicant/ Prior to issuance City of Palo Alto applicant shall apply the following measures during verified by the of building Development construction of projects in the HIP expansion area: Development permit Services ■ Mufflers. Construction equipment shall be Services Department Department properly maintained and all internal combustion engine driven machinery with intake and exhaust Building Division City of Palo Alto • Mitigation Monitoring + Reporting Program ' a g e 1 9 Item 15: Staff Report Pg. 41 Packet Pg. 196 of 281 Item 15 Attachment C - Draft Record of Land Use Action with MMRP Environmental Responsible for Timing of Oversight of Impact Mitigation Measure Implementation Compliance Implementation mufflers and engine shrouds, as applicable, shall be in good condition and appropriate for the equipment. During construction, all equipment, fixed or mobile, shall be operated with closed engine doors and shall be equipped with properly operating and maintained mufflers, consistent with manufacturers' standards. Electrical Power. Electrical power, rather than diesel equipment, shall be used to run compressors and similar power tools and to power temporary structures, such as construction trailers or caretaker facilities. Equipment Staging. All stationary equipment (e.g., air compressors, portable generators) shall be staged as far away from sensitive receptors as feasible. Where feasible, construct temporary noise barriers around stationary equipment in a manner that fully blocks the line of sight to residential windows in the adjacent apartment complex. Equipment Idling. Construction vehicles and equipment shall not be left idling for longer than five minutes when not in use. Workers' Radios. All noise from workers' radios shall be controlled to a point that they are not audible at sensitive receptors near construction activity. • Smart Back-up Alarms. Mobile construction equipment shall have smart back-up alarms that automatically adjust the sound level of the alarm in response to ambient noise levels. Alternatively, back-up alarms shall be disabled and replaced with human spotters to ensure safety when mobile construction equipment is moving in the reverse direction. • Sound Barrier. During the demolition, site preparation, grading, building, and paving phases City of Palo Alto • Mitigation Monitoring + Reporting Program 1 10 Item 15: Staff Report Pg. 42 Packet Pg. 197 of 281 Environmental Impact TRC-1 Mitigation Measure Responsible for Timing of Implementation Compliance of construction, temporary sound barriers shall be installed and maintained facing sensitive receptors (e.g., residential units, educational facilities) located within 100 feet of the center of construction activity. Temporary sound barriers shall, at a minimum, block the line of sight between noise -generating construction equipment and adjacent windows at sensitive receptors and shall be placed as close to the source equipment as feasible. Such barriers shall be field tested to reduce noise by at least 10 dBA at sensitive receptors. A sound barrier can achieve a 5 dBA noise level reduction when it is tall enough to break the line -of -sight from the source equipment to the sensitive receptor, and it can achieve an approximate 1 dBA additional noise level reduction for each 2 feet of height after it breaks the line of sight (FHWA 2011). Mobile sound barriers may be used as appropriate to attenuate construction noise near the source equipment. Disturbance Coordinator. The applicant shall designate a disturbance coordinator who shall be responsible for responding to any local complaints about construction noise. The noise disturbance coordinator shall determine the cause of the noise complaint (e.g., starting too early, bad muffler) and shall require that reasonable measures warranted to correct the problem be implemented. A telephone number for the disturbance coordinator shall be conspicuously posted at the construction site. TRIBAL CULTURAL RESOURCES Unanticipated Discovery of Tribal Cultural Resources— Project Applicant/ During HIP expansion area. In the event that cultural resources verified by the construction of Native American origin are identified during Development activities construction of any development associated with Services Item 15 Attachment C - Draft Record of Land Use Action with MMRP Oversight of Implementation City of Palo Alto Development Services Department City of Palo Alto • Mitigation Monitoring + Reporting Program 111 Item 15: Staff Report Pg. 43 Packet Pg. 198 of 281 Environmental Mitigation Measure Impact proposed HIP expansion, all earth -disturbing work in the vicinity of the find must be temporarily suspended or redirected until an archaeologist has evaluated the nature and significance of the find and an appropriate Native American representative, based on the nature of the find, is consulted. If the County, in consultation with local Native Americans, determines that the resource is a tribal cultural resource and thus significant under CEQA, a mitigation plan shall be prepared and implemented in accordance with state guidelines and in consultation with Native American groups. The plan would include avoidance of the resource or, if avoidance of the resource is infeasible, the plan would outline the appropriate treatment of the resource in coordination with the archeologist, if applicable, and the appropriate Native American tribal representative. Responsible for Timing of Implementation Compliance Department Building Division Item 15 Attachment C - Draft Record of Land Use Action with MMRP Oversight of Implementation City of Palo Alto • Mitigation Monitoring + Reporting Program 112 Item 15: Staff Report Pg. 44 Packet Pg. 199 of 281 ATTACHMENT D ZONING COMPARISON TABLE 800 San Antonio Road, 22PLN-00129 Item 15 Attachment D - Zoning Comparison Table Table 1: COMPARISON WITH CHAPTER 18.16 (CS DISTRICT) Residential Development Standards Regulation Required Existing Proposed Minimum Site Area, width and None APN 147-03-038 (800 Resulting parcel: depth san Antonio Road): 38,194 sf 18,719 sf 0.88 acres APN 147-03-043 (808- 814 San Antonio Road): 19,475 sf Minimum Front Yard 24 feet special setback 24 feet special setback Special Setback (Front) 24 feet — see Chapter ^'18-20 feet 24 feet 20.08 & zoning maps Rear Yard 10 feet for residential ^'56 feet to ^'85 feet 10 feet portion of proposed (varies for the three Some corners of project; none for existing buildings balconies protrude 2" - commercial across the site) I'll". Protrusion is allowed per CS zoning in the rear setback. PC Special Requirement for 10' where opposite Not Applicable/not Yards from a site in any RE, R- adjacent to existing 1, R-2, RM or residential zone applicable PC district, and separated therefrom by a street, alley, creek, drainage facility or other open area. For 60% or more residential projects, the minimum yard requirement shall be at least as restrictive as the yard requirements of the most restrictive residential district opposite such site line. Interior Side Yard None None 5 feet both sides Min. yard for lot lines abutting 10 feet (2) Not Applicable Not Applicable or opposite residential districts or residential PC districts Max. Site Coverage 50% (19,097 sf) 30.37% (11,600 sf) 60% (22,885 sf) Item 15: Staff Report Pg. 45 Packet Pg. 200 of 281 Item 15 Max. Building Height 50 ft or "12-14 feet (single d� Varison �vle o top 35 ft within 150 ft. of a story); site is not Compcab residential district located within 50 feet (other than an RM-40 of an RM-40 or PC Zone 64 feet 8 inches to or PC zone) abutting Rooftop Garden Trellis and mechanical Rooftop Garden enclosures allowed to exceed height by 12 ft. Stair and Elevator overrun allowed to minimum height feasible for access Mechanical equipment allowed to exceed height by 15 ft. PC Special Requirements for 50 ft when adjacent to Not Applicable Not Applicable/not height RM-30, RM-40, 35 ft adjacent to existing when adjacent to RE, residential zone R-1, R-2, RMD, RM, or PC Daylight Plane for lot lines None, as this site is not Not Applicable Not Applicable/not abutting one or more abutting a residential adjacent to existing residential zone districts other zone (6) residential zone than an RM-40 or PC Zone PC Special Requirements for Non-residential uses Not Applicable Not Applicable/not Daylight Plane abutting any RE, R-1, R- adjacent to existing 2, RM or any residential zone residential PC district — 10 ft and a 3:6 slope For >60% residential PC, the daylight planes may be identical to the daylight plane requirements of the most restrictive residential district abutting the site Residential Density 30 du/ac per CS Zone Not Applicable 85 DU/AC 40 du/ac per Housing (currently exclusively (75 units proposed) Element commercial) 107 du/ac per Housing Incentive Program Max. Floor Area Ratio (FAR) 1.0 Total 0.3:1 (11,600 sf) 3.0:1 (114,893 sf 0.6:1 Residential Commercial FAR Total) (22,916 sf) 2.98:1 (113,815 sf 0.4:1 Commercial Residential) 0.02:1 (1,078 sf Commercial) Item 15: Staff Report Pg. 46 Packet Pg. 201 of 281 Item 15 Maximum Floor Area for HIP In no event shall the Not Applicable F1LLtll.l II ICI IL V ' LVI III Ir. Comparison Table Director approve a commercial FAR that 2.98:1 (113,815 sf exceeds the standard Residential) in Table 4 of Section 0.02:1 (1,078 sf 18.16.060(b) or a total Commercial) FAR (including both residential and commercial FAR) in excess of 2.0 Minimum Useable Open Space 150 sf per unit Not Applicable Common Open Space Provided: 1,830 sf roof deck, 1,529 sf courtyard = 3,359 sf or 44.8 sf per unit Private Open Space: Typical 65 sf— 155 sf Average total per unit meets 150 sf min sf Minimum Mixed -use Ground 0.15:1)10) 1,078 sf Floor Commercial FAR 5,729.1 sf or 1,500 sf (c) (1) No parking or loading space, whether required or optional, shall be located in the first 10 feet adjoining the street property line of any required yard. (2) Any minimum front, street side, or interior yard shall be planted and maintained as a landscaped screen excluding areas required for access to the site. A solid wall or fence between 5 and 8 feet in height shall be constructed along any common interior lot line. (6) The initial height and slope shall be identical to those of the most restrictive residential zone abutting the site line in question. (10) In the CC(2) zone and on CN and CS zoned sites on El Camino Real, there shall be no minimum mixed use ground floor commercial FAR for a residential project, except to the extent that the retail preservation requirements of Section 18.40.180 or the retail shopping (R) combining district (Chapter 18.30(A)) applies. (c) A high -density residential or mixed -use project in the CS zone district, but not within the Ground Floor (GF) or Retail (R) combining districts, shall be required to replace only 1,500 square feet of an existing Retail or Retail -Like use. For the purposes of this partial exemption, high -density shall mean 30 or more dwelling units per acre. Table 2: CONFORMANCE WITH CHAPTER 18.52 (Off -Street Parking and Loading) for Existing Commercial and Proposed Residential* Type Required Existing Proposed Vehicle Parking 1/1 -bedroom unit N/A 148 spaces (76 EVSE 2/2 -bedroom or larger ready) unit 144 spaces total Bicycle Parking 1 LT space per unit N/A 76 LT 76 spaces 8 ST Loading Space 1, for residential N/A One structures with >50 units Item 15: Staff Report Pg. 47 Packet Pg. 202 of 281 Item 15 Attachment E - Neighbor Comments From: Dao. Veronica To: Kallas, Emily Subject: FW: April 10, 2024, Agenda Item 3, Report #: 2402-2666 Date: Wednesday, April 17, 2024 5:18:46 PM Attachments: image001.pnng imaae002.pna RE: 800 San Antonio He also sent an email to PTC late afternoon before the 4/10 meeting. Veronica ( ) Veronica Dao Administrative Associate III Planning and Development Department ITY OF (650) 329-2440 1 veronica.daoPcityofpaloalto.org PALO www.cityofpaloalto.org ALTO Provide feedback on Plannktg Development and Adrnk�isoation services From: jfpetrilla@gmail.com <jfpetrilla@gmail.com> Sent: Wednesday, April 10, 2024 4:55 PM To: Planning Commission <Planning.Commission@cityofpaloalto.org> Subject: April 10, 2024, Agenda Item 3, Report #: 2402-2666 You don't often get email from jfpetrilla( mai1.com. Learn why this is important CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. Dear Planning and Transportation Commission members While the EXECUTIVE SUMMARY, reviews compliance of the project plans with various criteria, there appears to be no comparison with the City of Palo Alto Urban Forest Master Plan. For example, "City of Palo Alto Urban Forest Master Plan, Policy 6.D. Strive for canopy equity —prioritizing areas in which the UC Davis report indicated a decrease between 1982 and 2010" supported by "Program 6.D.i. Investigate reasons for less canopy in south Palo Alto." and "Program 6.D.ii. Develop strategies to end the trend of decreasing canopy in South Palo Alto" are not mentioned. Since South Palo Alto is sufficiently below the average canopy coverage of Palo Alto for Canopy to have a tree planting program to improve the canopy coverage, a "no net loss of canopy" requirement seems insufficient. The canopy coverage target for the project should at least match the goal for South Palo Alto — If not, how will the goal for South Palo Alto be met? Explicit goals and timelines should be set. Respectfully, Item 15: Staff Report Pg. 48 Packet Pg. 203 of 281 Item 15 Attachment E - Neighbor Comments John Petrilla 777 San Antonio Rd Palo Alto, CA Item 15: Staff Report Pg. 49 Packet Pg. 204 of 281 Item 15 Attachment E - Neighbor Comments From: Kallas, Emily To: Dana Wyse Subject: RE: 800 San Antonio Rd Project Date: Monday, March 18, 2024 10:25:00 AM Attachments: image001.gng imaae002.ona Hi Dana, Thank you for letting me know, we will keep this in mind and I will include it in public comments for this project. Thanks, Emily Emily Kallas, AICP Planner Planning and Development Services Department PALO (650) 617-3125 1 emily.kallasla�cityofpaloalto.org ALTO www.cityofpaloalto.org Provide feedback on Planning Development and Administration services Parcel Report I Palo Alto Zoning Code I Online Permitting System I Planning Forms & Applications Planning Applications Mapped From: Dana Wyse <dmwyse@gmail.com> Sent: Monday, March 4, 2024 9:01 AM To: Kallas, Emily <Emily.Kallas@cityofpaloalto.org> Subject: Re: 800 San Antonio Rd Project Yes. They used the parking lane the entire project. Many times they also used the right lane. Dana Wyse C 650-793-4212 On Mon, Mar 4, 2024 at 8:58 AM Kallas, Emily <Emily.Kallasl@cityofpaloalto.org>wrote: Hi Dana, Thank you for your comment. Lane closures and other related construction logistics are generally addressed during the building permit process, after the planning entitlement has been approved. We do not know what this project would require yet in that regard, but we will take your comment into consideration. Do you recall if there were lane closures associated with the recently Item 15: Staff Report Pg. 50 Packet Pg. 205 of 281 Item 15 Attachment E - Neighbor Comments built hotels? If so, I can discuss it with Public Works Engineering and get more information. Thanks, Emily ( ) Emily Kailas, AICP Planner Planning and Development Services Department PALO (650) 617-3125 1 emily.kallas(@cityofpaloalto.org ALTO www.cityofpaloalto.org Pnriida faadback on Pain Dsv pn* and Adednistratbn aaniioas Parcel Report I Palo Alto Zoning Code I Online Permitting System I Planning Forms & Applications I Planning Applications Mapped From: Dana Wyse <dmwyse(@gmail.com> Sent: Friday, March 1, 2024 10:20 AM To: Kallas, Emily <Emily.KallasPcityofpaloalto.org> Subject: 800 San Antonio Rd Project You don't often get email from dmwvse(�gmail.com. Learn why this is important CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. Hello Emily, I own property on Fabian Wy, so I receive the notice of Architectural Review. I have owned the property at 4055-57 for 30 years. Everytime a large project has gone up on San Antonio Rd, the contractor somehow gets the city, usually Mountain View to allow them to use one of the lanes which causes massive congestion for the life of the project. I am not against building more housing but feel any project undertaken should provide an area on the project site for any construction related work. Slightly closer to Charleston the parking lane ends which means if a lane is allowed to be used all cars would be fed into a single lane. At the signal at Charleston and San Antoinio there are 2 left turn lanes and 2 normal lanes. If you step back to 800 San Antonio we are talking about one lane feeding 4 lanes if a closure is allowed. I feel if the project is allowed to go forward all closures should be limited to Leghorn which is the street bordering 788 San Antonio. Please let me know what the city's plan is regarding the impact on traffic. Sincerely, Dana Wyse Item 15: Staff Report Pg. 51 Packet Pg. 206 of 281 Item 15 Attachment E - Neighbor Comments Dana Wyse C 650-793-4212 Item 15: Staff Report Pg. 52 Packet Pg. 207 of 281 Item 15 Attachment E - Neighbor Comments From: ifoetriIlaCogmail.com To: Architectural Review Board Cc: Kallas, Emily Subject: PUBLIC HEARING / QUASI-JUDICIAL. 800 San Antonio Road [23PLN-00010] Date: Tuesday, March 5, 2024 11:56:17 PM Some people who received this message don't often get email from jfpetrilla@gmail.com. Learn why this important CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. Dear Architectural Review Board Regarding the ARB Staff Report #: 2312-2392, on Page 36 it's stated, "Staff also notes that the plans do not currently provide sufficient information to show compliance with the City's Tree Protection Ordinance and no net loss of canopy requirements." Since South Palo Alto is sufficiently below the average canopy coverage of Palo Alto for Canopy to have a tree planting program to improve the canopy coverage, "no net loss of canopy requirements" seems insufficient. The canopy coverage target for the project should at least match the goal for South Palo Alto — If not, how will the goal for South Palo Alto be met. Explicit goals and timelines should be set. Sadly, it seems that other than the front setback areas (which may soon become bike lanes) there's little natural ground surfaces. Ok, perhaps for downtown areas but disappointing for residential neighborhoods. Regards, John Petrilla 777 San Antonio Rd Palo Alto, CA 94303 Item 15: Staff Report Pg. 53 Packet Pg. 208 of 281 Item 15 Attachment E - Neighbor Comments Kailas, Emily From: Joan Larrabee <joan.larrabee.17@gmail.com> Sent: Monday, August 21, 2023 1:53 PM To: Kallas, Emily Subject: Re: 800 San Antonio Road Thank you, Emily. When will this project go to City Council? Joan Larrabee > On Aug 21, 2023, at 11:50 AM, Kallas, Emily <Emily.Kailas@cityofpaloalto.org>wrote: > Hi Joan, > Thank you for your questions. My responses are as follows: > 1. This is proposed to be a condominium ownership project. > 2. Typically the schools are not a part of the Planning Entitlement phase of a project. School fees are paid at the time of Building Permits. However, we understand your concerns regarding Safe Routes to Schools and are considering it in the project review. > 3. Bike parking is a zoning code requirement for all housing units, regardless of location. > Thanks, > Emily > Emily Kallas, AICP > Planner > Planning and Development Services Department > (650) 617-3125 1 emily.kallas@cityofpaloalto.org > www.cityofpaloalto.org > -----Original Message----- > From: Joan Larrabee <joan.larrabee.17@gmail.com> > Sent: Wednesday, August 16, 2023 9:17 PM > To: Kallas, Emily <Emily.Kallas@cityofpaloalto.org> > Subject: Re: 800 San Antonio Road >Thank you, Emily, > Questions the public asked during previous hearings still not answered: > Since these are to be rentals, will there be an on -site manager? > Which school district will students attend? Mountain View or Palo Alto? It seems the boundary goes through the property. > Why all the bike parking spaces when there are no bike lanes? > Joan Larrabee >> On Aug 16, 2023, at 4:39 PM, Kallas, Emily <Emily.Kallas@cityofpaloalto.org>wrote: Item 15: Staff Report Pg. 54 Packet Pg. 209 of 281 >> Hi Joan, Item 15 Attachment E - Neighbor Comments >> The Staff Report is available here: >> https://www.cityofpaloalto.org/Departments/Planning-Development-Servi >> c es/Architectural-Review-Board-ARB/Current-ARB-Agendas-Minutes >> The Plans are downloadable from this webpage: >> https://www.cityofpaloalto.org/Departments/Planning-Development-Servi >> c es/Current-Planning/Projects/800-San-Antonio-Road >> Please let me know if you have any questions or comments about the project. >> Thanks, >> Emily >> Emily Kallas, AICP >> Planner >> Planning and Development Services Department >> (650) 617-3125 1 emily.kallas@cityofpaloalto.org >> www.cityofpaloalto.org >> Parcel Report I Palo Alto Zoning Code I Online Permitting System >> Planning Forms & Applications I Planning Applications Mapped >> -----Original Message----- » From: Joan Larrabee <joan.larrabee.17@gmail.com> >> Sent: Wednesday, August 16, 2023 4:27 PM >> To: Kallas, Emily <Emily.Kailas@cityofpaloalto.org> >> Subject: 800 San Antonio Road >> [You don't often get email from joan.larrabee.17@gmail.com. Learn why >> this is important at https://aka.ms/LearnAboutSenderldentification ] >> CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. >> Good Afternoon, Emily, >> Please forward to me the staff report and plans for the proposal for 800 San Antonio Road, I am i able to open any materials at the address provided on the postcard mailed to me. >> I would like to attend the meeting tomorrow morning. >> Joan Larrabee >> 777-16 San Antonio Road >> Palo Alto 2 Item 15: Staff Report Pg. 55 Packet Pg. 210 of 281 Item 15 Attachment E - Neighbor Comments Kailas, Emily From: MGA Properties <mgapropertiesinc@gmail.com> Sent: Monday, August 28, 2023 10:19 AM To: Kallas, Emily Subject: Re: 788 San Antonio Road project 10:00 am is good. Okay, I guess I read the wrong address. We're across the street anyway but wanted to see how it is going to affect us. Thanks, Janelle On Mon, Aug 28, 2023 at 12:16 PM Kallas, Emily <Emily.Kallas@cityofpaloalto.org>wrote: Hi Janelle, I can do 10 am, or any time after 1:30 pm. Additionally, I noticed your email subject line says 788 San Antonio. The meeting on the 17th was for 800-814 San Antonio next door. Thanks, Emily Emily Kallas, AICP Planner PALO Planning and Development Services Department ALTO (650) 617-3125 1 emily.kallas@cityofpaloalto.org www.cityofpaIoalto.org 1 Item 15: Staff Report Pg. 56 Packet Pg. 211 of 281 Provide feedback on Planning Development and A*Wntration senliaet Item 15 Attachment E - Neighbor Comments Parcel Report I Palo Alto Zoning Code I Online Permitting System I Planning Forms & Applications I Planning Applications Mapped From: MGA Properties <mgapropertiesinc@gmail.com> Sent: Monday, August 28, 2023 10:09 AM To: Kallas, Emily <Emily.Kallas@cityofpaloalto.org> Subject: Re: 788 San Antonio Road project You don't often get email from mgapropertiesinc@gmail.com. Learn why this is important Thank you Emily for getting back to me. A phone call would be fine. What time tomorrow would work for you? Thanks, Janelle On Mon, Aug 28, 2023 at 11:54 AM Kallas, Emily <Emily.Kallas@cityofpaloalto.org>wrote: Hi Janelle, I am happy to answer any of your questions, either via email or with a call/virtual meeting. Which would you prefer? For a longer call, I have a full schedule today but am open most of the day tomorrow, or Wednesday afternoon. Thanks, Emily Item 15: Staff Report Pg. 57 Packet Pg. 212 of 281 Emily Kailas, AICP Planner or PALO Planning and Development Services Department ALTO (650) 617-3125 1 emily.kallas@cityofpaloalto.org www.cityofpaIoalto.org Provide feedback on Planning Development and Administration services Item 15 Attachment E - Neighbor Comments Parcel Report I Palo Alto Zoning Code I Online Permitting System I Planning Forms & Applications I Planning Applications Mapped From: MGA Properties <mgapropertiesinc@gmail.com> Sent: Monday, August 28, 2023 9:50 AM To: Kallas, Emily <Emily.Kallas@cityofpaloalto.org> Subject: 788 San Antonio Road project You don't often get email from mgapropertiesinc@gmail.com. Learn why this is important CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. Hello Emily, We received your notice in the mail. Unfortunately, we missed the meeting. I am the owner of a building across the street. I wanted to discuss the project and it's affect on the neighborhood with you. Please contact me at your earliest convenience. 3 Item 15: Staff Report Pg. 58 Packet Pg. 213 of 281 Item 15 Attachment E - Neighbor Comments Thanks, Janelle (650)464-5209 Manager MGA Properties, Inc 125 E Sunnyoaks Avenue Suite 201 Campbell, CA 95008 Ph:(408)871-5914 Fax:(408)871-5911 Manager MGA Properties, Inc 125 E Sunnyoaks Avenue Suite 201 Campbell, CA 95008 Ph:(408)871-5914 Fax:(408)871-5911 Item 15: Staff Report Pg. 59 Packet Pg. 214 of 281 Item 15 Attachment F - Link to Project Plans and Environmental Documents Project Plans In order to reduce paper consumption, a limited number of hard copy project plans are provided to Board members for their review. The same plans are available to the public, at all hours of the day, via the following online resources. Directions to review Project plans and environmental documents online: 1. Go to: bit.ly/PApendingprojects 2. Scroll down to find "800 San Antonio" and click the address link 3. On this project -specific webpage you will find a link to the project plans and other important information Direct Link to Project Webpage: https://www.cityofpaloalto.org/Departments/Planning-Development-Services/Current- Planning/Projects/800-San-Antonio-Road Materials Boards: Color and material boards will be available to view in chambers during the ARB hearing. If you need assistance reviewing the above documents, please contact the Project Planner or call the Planner -on -Duty at 650-617-3117 or email planner@cityofpaloalto.org Item 15: Staff Report Pg. 60 Packet Pg. 215 of 281 Item 16 Item 16 Staff Report CITY OF PALO ALTO City Council Staff Report From: City Manager Report Type: STUDY SESSION Lead Department: Human Resources Meeting Date: May 6, 2024 Report #:2404-2890 TITLE Review Workforce Recruitment Strategic Plan and Recommendations for Improvements in the Recruitment Process RECOMMENDATION Staff recommends that the Council receive this report on the development and implementation of the City of Palo Alto's workforce recruitment strategic plan. EXECUTIVE SUMMARY The City of Palo Alto engaged with Municipal Resource Group to review the existing recruitment, marketing, onboarding, and candidate experience process for recommendation of additional areas for targeted growth, development, and enhancement (Assessment Report, Attachment A). This study session provides an overview of the work completed and outlines the current and ongoing implementation work. BACKGROUND As the region and state emerged from the worst of the global pandemic, there was a clear need to reinstate and expand service areas to our community. The widespread impacts of this unique moment in recent history led to a change in expectations around work flexibility, what is now known as the great resignation, and an unparalleled increase in "quiet quitting." It is against this backdrop the City was now competing for talent. During the Council review of the FY2024 budget, the Council asked the HR department to examine potential improvements to its recruitment processes and develop an overall strategy for reducing the citywide vacancy rate, which, during this period, had hit a peak of 17% with significant position restoration approved in FY 2023 after the worst of the COVID-19 pandemic had passed. Beginning in June of 2023, the City's HR department began the process of finding the appropriate subject matter expertise to conduct an assessment and return with an overall Item 16: Staff Report Pg. 1 Packet Pg. 216 of 281 Item 16 Item 16 Staff Report assessment and strategic plan for elevating the City's current recruitment program. Municipal Resource Group ("MRG") was chosen due to its vast public sector experience and recent success in developing high -end, curated, and tailored strategic plans for municipal governments, most recently aiding Berkeley in developing its citywide workforce roadmap with improvement initiatives. In August of 2023, the project held its official kick off with MRG recommending and conducting an assessment of the full cycle recruitment process, which included interviews with department stakeholders, hiring managers, recent candidates, current and former recruitment staff, and all current HR staff involved in any portion of the recruitment, marketing, or onboarding process. This assessment acted as the baseline for MRG to work with staff to identify key areas for development, resource allocation, and process improvement. ANALYSIS As outlined in the Assessment Report, the City of Palo Alto is not alone in facing recruitment and talent acquisition challenges. Municipalities across the state are reporting similar recruitment and retention issues as reported by the League of California Cities and government thought leaders. NEOGOV, the preeminent government jobs/career site, has reported a 55% decrease in the number of applications per job across all public sector clients since 2019. Paired against a 78% increase in the number of job openings over a similar time period creates a daunting recruitment landscape. MRG's assessment focuses on several key areas where top performing organizations must prioritize to win top talent. These areas include; (1) Efficient and expedient recruitment processes (2) Providing an excellent candidate experience with regular active and engaging communication (3) Incorporating candidate feedback into process wherever feasible (4) Building a compelling brand and message (5) Marketing that communicates how future employees can help find purpose and create impact when working for a local government agency (6) Increase in capacity for active marketing and candidate sourcing (7) Building a pipeline of talents for the long-term through internships, apprenticeships, and reviewing job requirements to broaden the field for future candidates. Through interviews and deep analysis of existing recruitment data, MRG is recommending a multi -year Recruitment Strategic Plan tailored and focused on areas of opportunity, expansion, and growth. The strategic plan has 31 separate initiatives and is broken into four categories with objectives and criteria outlined within each category. The four categories that will be reviewed during this study session are: Item 16: Staff Report Pg. 2 Packet Pg. 217 of 281 Item 16 Item 16 Staff Report 1. Boost Recruitment Capacity and Capabilities 2. Active Marketing, Advertising, and Sourcing 3. Streamline Process and Uplift Data/Metrics 4. Invest in Talent Pipeline The assessment report and resulting Recruitment Strategic Plan is comprehensive and detailed. Under the City Manager's and HR's leadership, improvements are already actively underway. It is important to acknowledge that this is a multi -year strategic plan and requires long-term focus, strategy, commitment and resources to be fully implemented. Some of the key areas identified that are already being implemented include: • Onboarding process improvement project: This project has a goal of reducing the current average time a candidate spends between Conditional offer letter and first day of work. Currently this sits at 45 days, the target goal is a 10% reduction within the first 6 months. • Digital marketing pilot: Positions were selected within Public Works and Utilities and pilots are underway utilizing enhanced digital advertising campaigns to drive candidate engagement and lead generation. • Enhanced expedited hiring process, specifically the City HRL program: The Human Resources Liaison program (HRL) is the bedrock of the expedited hiring process, bringing departments into the recruitment process and empowering departments to actively support the filling of vacancies through direct recruitment support and providing more opportunities for candidate engagement. Through staffing resources from departments, the HR team continues to expand this program to additional departments, enacted a standard 3 session training course, and increased recruitment bandwidth city-wide. The Human Resources Department next plans to expand implementation into the following areas outlined in the strategic plan: • As a part of the FY2025 budget, a new Recruitment Division Manager position is recommended to focus on the execution of critical projects, expansion of the expedited hiring process, and professional development of our existing recruitment personnel. This new position will lead the implementation of the overall strategic plan for workforce recruitment building on areas already in progress. This position will also play a pivotal role in implementation of the City's diversity, equity, inclusion and belonging (DEIB) plan related to recruitment, screening, selection and marketing. • Refresh recruitment team training guides focused on agile recruitment models, enhanced candidate experience, and increased department engagement. • Upskill current personnel with tailored and targeted professional development plans, incorporating future areas of recruitment need. • Lead/project manage software integration between the City's applicant tracking system (NEOGOV) and the City's enterprise resource planning system (SAP). Item 16: Staff Report Pg. 3 Packet Pg. 218 of 281 Item 16 Item 16 Staff Report • Plan, manage, and implement master contract/RFP for digital marketing services creating a toolkit of vendors that can be easily accessible and utilized by HR recruiters and depart HRLs. (Contingent on funding and results of the pilot program underway) • Develop and implement additional talent pipelines such as internship programs, apprenticeships, career ladders and direct hire programs • Partner with the City Manager's Office and the City's Equity and Inclusion Program manager to review and implement DEIB strategic plan areas impacting recruitment processes and practices • Plan, manage, and implement overhaul of the City's application and candidate portals focusing on mobile friendly experience from start to finish The HR team appreciates the work conducted by MRG and is excited to continue working towards creating an elevated recruitment process maintaining Palo Alto's status as an employer of choice. Implementation of this strategic plan will continue to remain at the forefront of guiding investments in staffing and tools city-wide. FISCAL/RESOURCE IMPACT Through the FY2025 budget review, the Council will review the recommended additional staffing to support implementation of the strategic plan. In addition, once the RFP for digital marketing services is complete and better costing and effectiveness of the pilot is known, staff will return to Council to discuss funding needs for active recruitment. STAKEHOLDER ENGAGEMENT As outlined in the report submitted by MRG, there was substantial stakeholder engagement in the development of this assessment including engagement of candidates, hiring managers, department directors, current and former recruitment staff, other HR divisions, and administrative services divisions (Payroll). ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by CEQA because assessing and improving recruitment strategies is a continuing administrative activity. CEQA Guidelines section 15378(b)(2). ATTACHMENTS Attachment A: Recruitment Strategic Plan APPROVED BY: Sandra Blanch, Human Resources Director Item 16: Staff Report Pg. 4 Packet Pg. 219 of 281 Item 16 Attachment A - Recruitment Strategic Plan Recruitment Stthtegic Plan CITY OF PALO ALTO Navigating Talent Streams to Reel In Excellence e The City of Palo Alto has long committed itself to being an "Employer of Choice" -- to attract and retain high quality employees to foster a culture committed to health and long-term success of the city organization, its workforce, and the Palo Alto community. In recent years, fishing for talent has become increasingly challenging in all sectors. Recruiting best practices have shifted and the workforce has changed dramatically post CDVID. This report outlines the current conditions for recruiting in Palo Alto and creates i Recruitment Strategic Plan that builds on current strengths and outlines opportunities for new strategies and tactics in order reel in excellent talent to join Palo Alto's team. ALL-STAR TALENT Item 16 Attachment A - Recruitment Strategic Plan "The charm of fishing is that it is the pursuit of what is elusive but attainable, a perpetual series of occasions of hope." - John Buchan, Scottish novelist & politician Fishing is like recruiting ... the hopeful search ... and the excitement of reeling in excellence. Just as fishing requires patience to wait for the right moment to catch a fish, recruiting often demands patience and persistence in finding the right candidate for a job. Both activities may involve periods of waiting and uncertainty before achieving success. Both activities involve a combination of skill, strategy, and a willingness to adapt to changing conditions. Fishing and recruiting for employees share several similarities in their processes and outcomes as noted below. 1 Understanding the Environment: Successful fishing requires an understanding of the fishing environment, including knowledge of the water, weather conditions, and fish behavior. Similarly, effective recruiting involves understanding the job market, industry trends, and the characteristics of potential candidates. 2. Skill and Strategy: Both fishing and recruiting require skill and strategic thinking. Anglers use different techniques, bait, and equipment to attract fish, while recruiters use various methods, such as job postings, networking, digital advertising, and headhunting, to attract and assess candidates. 3. Adaptability & Agility: In fishing, anglers must adapt their strategies based on changing conditions, such as weather, water clarity, and fish activity. Similarly, recruiters need to adapt their approaches based on factors like market demand, candidate availability, new technology, and hiring trends. 4. Setting the Right Expectations: Just as a fisherman sets realistic expectations about the type and size of fish they hope to catch, recruiters must set realistic expectations about the qualifications and fit of potential candidates for a job. 5. Celebrating Successes: Landing a prized catch in fishing can be a cause for celebration, just as successfully hiring a talented candidate to be a new Palo Alto employee is a significant achievement for recruiters and hiring managers. Overall, both fishing and recruiting require a combination of patience, skill, adaptability, and strategic thinking to achieve success. Recognizing and embracing these similarities can help recruiters approach their work with a fresh perspective and enhance their effectiveness in finding the right talent for their organizations. Item 16: Staff Report Pg. 6 1 1 Packet Pg. 221 of 281 around the country are seeking ways to improve the hiring of staff —to identify and tailor new methods of recruiting, retaining, and engaging employees, and to plan for future workforce development. Employers that are not adapting and advancing their organizations are in danger of losing excellent employees and being unable to retain or compete for top talent. The importance of strong and effective recruitment operations cannot be understated. Why filling vacancies is so critical to the success and sustainability of an organization ... SUPPORT MORALE — REDUCE MEET OBJECTIVES & DELIVER CUSTOMER RETAIN & DEVELOP TALENT BUILD ORGANIZATIONAL STRESS & BURNOUT PRODUCTIVITY SATISFACTION High levels of vacancies can REPUTATION Vacancies can lead to Vacancies hinder an Vacancies in customer -facing contribute to employee Prolonged vacancies can decreased productivity as organization's ability to roles can directly impact dissatisfaction and turnover as negatively impact an existing employees may need achieve its strategic goals and satisfaction levels. Long wait existing staff become organization's reputation as an to take on additional objectives. Unfilled positions times, reduced service quality, frustrated with increased Employer of Choice. A high responsibilities to may delay projects, disrupt and unmet needs due to workloads, increased training turnover rate or difficulty in compensate for the unfilled workflow, and impede understaffing can lead to of newly onboarded staff, and filling positions may signal roles. This can result in progress toward key dissatisfaction and quality of overall increased underlying issues within the burnout, reduced morale, and milestones. life impacts on the community, responsibilities, organization, deterring decreased overall output. potential candidates from applying and damaging the employer's brand. In mid -August 2023, the City of Palo Alto ("City") engaged the Municipal Resource Group ("MRG") to provide an assessment to help the City review and enhance the City's recruitment operations, processes, and marketing. Information on each consulting firm and team members is included in Appendix E. For this assignment, MRG conducted a thorough assessment including interviews, data review and analysis, detailed process review, and marketing analysis. The scope of this project is outlined in the graphic to the right. The goal of this assessment was to review the organization's recruitment program and craft an actionable strategic plan to attract employees titled the "Recruitment Strategic Plan". This Strategic Plan creates four themed areas of focus with a total of thirty-one (31) action items. This report is organized in the following sections: • Section 1— Executive Summary • Section 2 -- Trends & Current Landscape • Section 3 — Findings & Recommendations • Section 4 -- Recruitment Strategic Plan • Section 5 -- Implementation Project Approach & Process INTERVIEWED REVIEW OF KEY DEPARTMENTS, HR RECRUITMENT TEAM, EXTERNAL RECRUITERS PROCESSES & & HR LIAISONS PRACTICES ICI REVIEWED SECRET SHOPPER DRAFT FINDINGS & BACKGROUND SOCIAL MEDIA & RECOMMENDATION INFORMATION, WEB SITE REVIEW INTO RECRUITMENT NEOGOV DATA, & STRATEGIC PLAN PROCESSES ■ Section 6 -- Appendices (A - Detailed Recruitment Process Recommendations; B - Marketing Strategy Summary & Best Practices; C - Social Media SWOT Review; D - Secret Shopper Analysis; E - Consultant Firm / Team Information) Item 16: Staff Report Pg. 7 1 1 Packet Pg. 222 of 281 Item 16 SECTION 1- EXECUTIVE SUMMARY AttachmentA-Recruitment Strategic Plan Prompted by the imperative to streamline and enhance talent acquisition amidst evolving dynamics, the City Council directed the City Manager to initiate an assessment of the City's recruitment operations in mid -2023. The aim was to speed up the recruitment processes, improve customer service with departments, attract top talent, and ensure greater efficiency and effectiveness. Recruiting Landscape Recruiting today presents challenges characterized by a decrease in qualified candidates juxtaposed with a surge in job openings, particularly evident in the public sector. Nationally, local governments are experiencing the following: ■ 55% decrease in the number of applicants per public sector job (2019). ■ 78% increase in the number of public sector job openings (2020). This translates into fewer applications per public sector job recruitment. To add to the dilemma, it is important to realize that many of the applications received are not qualified to perform the advertised job. In 2023, Palo Alto received 8,045 applications for full-time vacant positions, and after vetting, 3,515 applications (43%) were considered qualified with others being screened out (incomplete applications, not meeting minimum qualifications, not the best qualified). When reviewing 2023 recruitments, we found 47% of the recruitments received less than 10 "qualified" applicants and 63% of the recruitments received less than 15 "qualified" applicants. This dynamic was compounded by increased peak recruitment workload plus resource constraints within the Human Resources Department and the Recruitment/Selection Division. Following the freezing of positions and a reduction in force from pandemic revenue loss, the City Council restored a total of 140 FTE positions between 2022 and today which necessitated new recruiting activity. During a similar timeframe, the HR Recruitment/Selection team experienced a complete turnover in late 2021 and is only now nearing full staffing capacity in February 2024. Furthermore, management capacity was impacted by the vacancy of the Assistant HR Director role for a significant period in 2022-2023. As of January 2024, the City of Palo Alto faces a vacancy rate of 13.7%, with 20% of these vacancies stemming from newly created positions in the FY 23/24 budget. Of concern, 43% of departments struggle with vacancy rates surpassing 15%, impacting service delivery, employee morale, and overall productivity. While recruitment efforts are actively addressing 44% of vacant positions, 49% await initiation of the recruitment process by respective departments. HR has been triaging these recruitments with departments to the best of their abilities, but no overall strategic work program exists to create a proactive plan for how, when, and who will be leading the recruitments to move through this peak workload with prioritization. Addressing these challenges demands strategic interventions aimed at enhancing candidate quality, streamlining recruitment processes, and optimizing resource allocation to effectively meet the organization's staffing needs. These measures are crucial for maintaining operational efficiency and ensuring the continued provision of high -quality services to the community. Uniqueness of Palo Alto's Scope of Services While each local government is individualized, unique attributes of Palo Alto's organization and services dramatically impact recruiting. First, Palo Alto is a full -service municipality with extensive sophisticated utilities (including a water treatment plant and electric utility competing with PG&E), a museum, a zoo, libraries plus numerous other city departments typically found in most municipalities. This breadth and depth of the City's services adds complexity to recruiting. Each functional area of the City requires a recruiting team that fully understands the operations/work of the vacant position and targeted avenues for marketing effectively. Current Status Compared to other municipalities, Palo Alto stands at a favorable juncture to enhance and modernize its recruitment practices and processes. The organization has already taken strides by making substantial investments in cutting -edge recruitment software and tools, laying the groundwork for improved efficiency and effectiveness. These systems harbor a wealth of data and insights that can be harnessed for metrics and operational monitoring purposes. Moreover, the Human Resource Liaison Program, although still in its early stages, represents a structured initiative to collaborate closely with departments in recruitment processing and management. The HR Team is Item 16: Staff Report Pg. 8 1 1 Packet Pg. 223 of 281 actively bolstering this program through the development of new training modules, a formal certification program, and the expansion of department staff trained to serve as HR Liaisons, all with a keen focus on enhancing recruitment efforts. Financial investments approved by the City Council have also been significant, with major enhancements to base salary and benefits aimed at bolstering competitiveness within the region. Additionally, Palo Alto boasts a compelling employer brand, characterized by high name recognition and a reputation for creativity and high standards among local agencies. And yet, the high price of housing and living on the peninsula continues to be a constraint in hiring staff. Key Findings & Recommendations While acknowledging that there is still considerable work ahead to refine the recruiting system within the City, Palo Alto possesses substantial foundational elements upon which to build. With a commitment to continuous improvement and leveraging its existing strengths, Palo Alto is well -positioned to elevate its recruitment practices and attract top talent to fuel its continued success. Overall, the key findings show a need to increase strategic management of the recruitment program, build awareness of the City's job opportunities with the outcome of gaining more qualified applicants, improve communication and information sharing, streamline recruitment processes to gain speed and efficiency, and invest in a talent pipeline. Below are the key findings and high- level recommendations within the following categories. A more detailed Recruitment Strategic Plan further outlines these themes. 1. Strategic Management 2. Data/Dashboard for Decision Making 3. Candidate Awareness, Sourcing & Applications 4. Telling Palo Alto's Story with Compelling Story Telling 5. Recruitment Process 6. Candidate Experience 7. Build a Talent Pipeline Item 16 #1 - Strategic Management IAttachment A - Recruitment To effectively addrel Strategic Plan s faced by the City of Palo Alto, active strategic managemen of recruitments is imperative. This involves investing in new management capacity and shifting from triage to strategy to develop a master plan for recruitment roll -out and any additional resource needs. The feedback from department stakeholders is critical to discuss priorities, yet an overall city prioritization is also required with perspectives and direction from Human Resources and the City Manager's Office. More active strategic oversight will allow Human Resources to leverage expertise to streamline recruitment processes, bundle recruitments for efficiency, and actively manage the recruitment processes upfront. Continued support and commitment from the City Council and City Manager as champions for recruitment initiatives is also paramount. #2 -- Data/Dashboard for Decision Making The City of Palo Alto faces significant challenges with data management in its recruitment processes. The data from NEOGOV's three modules (the City's applicant tracking software) and SAP (the City's financial systems tracking employee data such as position control, start dates, etc.), though extensive, are not integrated. To create a regular baseline vacancy status report, HR staff are required to perform extensive manual integration and quality control reviews. This manual review and generation of data and reports not only consumes valuable time but also increases the likelihood of errors and decreases the regularity of reporting. Furthermore, the absence of a Human Resource Information System (HRIS) exacerbates the situation, making it difficult to centralize and streamline data management tasks. Additionally, data inconsistencies and irregularities are quite common due to the high volume of data, staff turnover, and how various departments utilize the applicant tracking software (NEOGOV). Efforts are underway to implement consistent practices and clean up the data; these initiatives are a work in progress. Moreover, the absence of consistent phases and metrics for monitoring progress hampers strategic decision -making by recruitment staff. The lack of available data makes it difficult to monitor progress and see areas where improvement is needed. Limited availability of critical information also contributes to frustration between HR and departments, hindering communication and effective collaboration. Item 16: Staff Report Pg. 9 1 1 Packet Pg. 224 of 281 The creation of a real-time data Recruitment/Vacancy dashboard for decision - making and communication is crucial. In the long run, this entails addressing integration issues between software systems, and in the short run, an integrated spreadsheet or the implementation of an umbrella Candidate Relationship Manager (CRM) for centralized recruitment management is necessary. Addressing these challenges is essential to improve data integrity, activate data -enabled decision -making, provide regular, real-time communication, and streamline recruitment processes for enhanced efficiency and effectiveness. #3 -- Candidate Awareness, Sourcing & Applications Candidate awareness and application rates are crucial • • • • components of a successful recruitment strategy. Currently, Palo Alto advertises positions through public sector job boards, local government professional associations, and the City's social media platforms, with limited funding available for job advertising. However, in today's competitive recruiting landscape, investing in active digital and social media marketing is essential for effectively sourcing and targeting candidates. Finding qualified candidates for open positions presents a significant challenge in public sector recruitment. A recent analysis by NEOGOV, examining 67,000 job applications on GovernmentJobs.com, revealed an average of only 14.3 applicants per job opening. Moreover, among these applicants, only a few possess the necessary qualifications for the role. To address this challenge, recruiters employ two sourcing strategies: active candidate sourcing and passive candidate sourcing. Active sourcing involves engaging with individuals actively seeking employment, while passive sourcing targets those who may not be actively looking but could be open to new opportunities. Utilizing both active and passive candidate sourcing strategies is vital to attract a diverse pool of qualified candidates. Expanding the candidate pool can be achieved by updating minimum qualifications in job postings to focus more on skills rather than specific degree requirements or prior local government experience. Leveraging alternative candidate pools, such as past applicants, retirees, and veterans, further enhances recruitment success. Palo Alto has found success in creating apprenticeship and internship programs to grow its staff, which should be encouraged to broaden the talent pool and grow top talent. Lastly, transitioning HR staff from "processors" to empowered "recruiters" is imperative. Providing them with the necessary knowledge and tools to Item 16 actively market, communicate, andl their Attachment A - Recruitment effectiveness in attracting top talen Strategic Plan #4 -- Tell Palo Alto's Story with Compelling Marketing i Palo Alto has a recognized employer brand of high / expectations and driving for excellence. Yet, the City's current marketing needs to be crafted with more compelling content to narrate the "Team Palo Alto" story. Going forward, there is an opportunity to create captivating City job webpages and produce multimedia marketing materials that highlight the advantages and prospects of being a part of the City of Palo Alto workforce. Palo Alto has a full array of services with a breadth of corresponding jobs that could be better profiled to build interest. Currently, the City's career web pages are informative, but don't paint an impactful picture and meaningful connection of working for Palo Alto. Developing a recruitment marketing strategy centered on employment branding, including active storytelling extolling Palo Alto's "why" on the City's social media sites highlighting employee work and department accomplishments, will support the targeted advertising and candidate sourcing. #5 -- Recruitment Process Streamlining and refining the recruitment process is crucial ♦+..S for the City. This involves re -engineering the process to enhance efficiency and accelerate the time -to -hire. One key • �■ metric in this endeavor is the "Time to Fill," which measures the duration from the creation of a job requisition to the signing of an offer letter. Palo Alto's "Time to Fill" metric (125 days) is slightly better than the national public sector average of 130 days, but there is room for improvement. Moving with speed to hire is critical to being able to keep candidates through the hiring process in this highly competitive time. Departments also seek better communication and more speed in processing recruitments. Departments expressed significant frustration with the time elapsed between the selection of a final candidate and the completion of the offer letter process, impacting the determination of start dates. In response to feedback received during the assessment, the Human Resources staff has already implemented some improvements. Specific recommendations for process enhancements are detailed in Appendix A of this report. Capturing data about the different "gates" in the recruitment process to monitor the efficiency of the recruitment process will also be critical including the ability Item 16: Staff Report Pg. 10 1 1 Packet Pg. 225 of 281 to review this data by department. The ultimate goal of these efforts is to optimize the recruitment process, providing a smoother, faster, and more effective experience for HR, hiring managers, and candidates. #6 -- Candidate Experience Presently, due to the workload and available tools, active communication with candidates is not consistently delivered. A "Secret Shopper" test conducted during the study revealed that after receiving an initial email acknowledging receipt of the application, no further communication to the candidate occurred over the next six weeks. In today's competitive job market, candidates expect active communication and engagement throughout the recruitment process. Without it, they may assume they were not selected and move on to other opportunities. To attract and retain top talent, it is imperative to treat candidates as valued future employees and provide transparent and supportive interactions throughout the recruitment process. This includes regular updates on the status of their application, timely responses to inquiries, and clear communication about the next steps in the hiring process. By prioritizing the candidate experience, Palo Alto can enhance its reputation as an employer of choice and strengthen its ability to attract and retain top talent. Item 16 #7 — Build a Pipeline of Talent IAttachment A - Recruitment Nurturing talent withi tial for the r��■��� Strategic Plan • • sustainable development an a ec iveness o municipalities. • • • �MVProfessional development and growth for current staff is key. • • • • • • Externally, building awareness of the opportunities available in local government is crucial, as many individuals may not be aware of the diverse range of fulfilling careers that exist within cities. Palo Alo has a strong foundation in place for continued investments in internships, apprenticeships, and partnerships with educational institutions and community organizations. These programs are an excellent way to expose students and professionals to the inner workings of local government and provide them with valuable hands-on experience, especially for Police, Fire, Public Works, and Utilities. This not only benefits the individuals involved but also fosters a continuous pipeline of skilled individuals who are knowledgeable about the specific needs and challenges of their community. Moreover, investing in programs to develop and grow talent locally ensures that municipalities have a pool of skilled professionals who understand the unique dynamics of the area. Conclusion This assessment of Palo Alto's recruitment program provides findings, data, and thirty-one recommendations for a Recruitment Strategic Plan. With additional investment and expertise, Palo Alto can upgrade its recruitment operation in the short run and transform it, in the long run, to reel in excellent employees to support high -quality services to its community. Item 16: Staff Report Pg. 11 l l Packet Pg. 226 of 281 Item 16 SECTION 2 - TRENDS AND CURRENT LA N DI Attachment A - Recruitment Strategic Plan Hiring and retaining high -performing public agency employees in 2023 is extremely challenging, especially in the hyper -competitive Bay Area job market. The "Great Resignation" of the pandemic was actually a "great re-evaluation" of work which has forever changed how we work and how we think about our careers and lives. Faced with this, many public employers are struggling to retain and hire key staff for important positions. The City of Palo Alto is no exception. Below are key data points with the majority from NEOGOV's report, "2023 The Quiet Crisis in the Public Sector". RECRUITMENT & DEMOGRAPHIC TRENDS ✓ Long-term trends, including aging populations, the increasing participation of Gen Z in the workforce, greater workforce diversity, and the rise of hybrid and remote work, are transforming recruiting needs and labor pools for government services. (McKinsey & Company) ✓ 55% decrease in the number of applicants per public sector job since 2019. ✓ 78% increase in the number of public sector job openings since 2020. ✓ On average nationally, local government recruitments are receiving an average of 14.3 applications per job opening. ✓ Most difficult public sector jobs to fill nationally: law enforcement, engineering & planning, trades/utilities, information technology. CANDIDATES' VIEWS ✓ 80% of job seekers expect the application process to take no more than 30 minutes. PUBLIC SECTOR JOB MARKET More openings, less applications SINCE 2019 the number of APPLICATIONS per job has decreased by 55% SINCE 2020 the number of JOB OPENINGS has increased by 78% SINCE 2020 the number of APPLICANTS has remained STAGNANT ✓ Candidates want career development and flexible career pathways. ✓ By the day after a candidate submits an application, 60% expect to receive an automated email, 27% expect a personal email, and 11% a phone call. ✓ A total of 73% said they assume they have been rejected (and will look elsewhere) if they don't receive an update within two weeks after they apply. ✓ Candidates are seeking flexible work schedules and the ability to work hybrid. Item 16: Staff Report Pg. 12 I I Packet Pg. 227 of 281 Metrics and consistent measurements of phases of the recruitment process are important to be able to track Palo Alto's comparison to other organizations as metrics need review and refinement. well. There are two key metrics that Palo Alto currently tracks: (1) Time to Fill and (2) Time to Hire. As outlined below, these More information and recommendations regarding metrics are found later in the report. TIME TO FILL METRIC -- The "Time to Fill" metric starts from the moment an agency decides to hire for a position — that is, the moment a job requisition is created and approved for a recruitment to begin and is completed at the time that an offer letter is signed. It tells an organization of the amount of time that it takes to fill a position from beginning to job offer. NE0G0V and Palo Alto measure this time frame the same (see chart on next page). Table A shows NE0G0V's 2020 national data of Time to Fill averages for different sectors. Palo Alto's Time to Fill metric is slightly better at 125 days than the national public sector average of 130 days. However, the hiring speed of the private sector is substantially less at 36 days on average nationally. Hiring speed is a critical area of improvement for all local agencies including Palo Alto. TIME TO HIRE METRIC -- The "Time to Hire" measurement is slightly narrower than the "Time to Fill". The Time to Hire" focuses on from the time the job is publicly opened with some variations. For Palo Alto, the HR Department tracks "Time to Hire" from the time that the job is posted to the actual start date. Table B shows the City's historical performance of "Time to Hire" as outlined as "Key Performance Measurements" in the annual budget. Not surprisingly, the Time to Hire metric for Palo Alto has increased since 2021 as the City has experienced higher turnover, new positions, and restoration of positions in response to the pandemic's economic and societal shifts. • • ,- TIME TO FILL — PALO ALTO (requisition to signed job offer) TIME TO FILL — NEOGOV Local Government (requisition to signed job offer) , II HISTORICAL TIME TO HIRE — PALO ALTO (job posted to start date) Candidates Job requisition Marketing & screened, References, Conditional approved, job Outreach testing, & Job Candidate Pre - posting created, Position open interview. Offer, boarding & Negotiations, Start Date & job posted for applications Shared by HR & Final Job Offer Department I. . • • • TABLE A - TIME TO FILL METRIC 2020 NEOGOV Industry Averages Source: NEOGOV Time to Hire Report 2020 [jjj Local Governments 130 days PALO ALTO - CURRENT 125 days Educational institutions 119 days State Governments 96 days Private Sector 36 days TABLE B - TIME TO HIRE METRIC Palo Alto Budget - History Key Performance Measurements 2018 - Actuals 103 days 2019 - Actuals 98 days 2020 - Actuals 99 days 2021- Actuals 85 days 2022 -Actual 101 days 2023 - Benchmark 110 days Item 16: Staff Report Pg. 13 I I Packet Pg. 228 of 281 Item 16 Attachment A - Recruitment Strategic Plan Citywide Staffing History J The City's staffing levels have fluctuated greatly during the last four years while the organization navigated the economic changes brought on by the pandemic. The chart below provides a summary of key events and staffing changes over the past 5 years and how these implications have impacted new positions and recruitment workload for HR. It is important to note that the work for HR in public agencies dramatically increased with the arrival of COVID-19 and the implementation of various pandemic impacts. This created a perfect storm for HR. Palo Alto HR leadership and staff focused on responding to COVID safety protocols and remote work for employees, concession bargaining, position freezes, and layoffs. As the City emerged from the height of the pandemic, new negotiations were completed that focused on major retention investments in salary and benefits, plus the scoping and hiring of new employees as the organization began to rebuild services and associated staffing levels. ✓ Recruiting is still impacted by peak workloads of new positions due to the City's restoration budgets of the last two years. While positions have been approved, the new positions have not all been filled at this time. ✓ With the separation of employees and new positions approved, there are also internal promotions occurring which fills one position and then creates a new vacancy. This is the domino effect that happens in recruiting. ✓ From the four years of FY 19/20 to FY 22/23, the City was also experiencing significant employee separations, retirements, or layoffs. Currently, the separations for full-time staff are stabilizing lower which is probably partly due to new contracts and compensation approved in June 2023. Key Milestones / ■ March 2020 ■ $39M General Fund ■ Eliminated vacant ■ First restorative I ■ Reinvestment in Events Pandemic Hits reduction frozen positions; budget for the City. services continues; ■ HR implements ■ Froze positions; HR layoffs continued. ■ Added back add back positions. health orders led layoff notices & ■ HR enforcing COVID positions. ■ Negotiations to bumping & vaccination rules. above median ■ HR negotiated COLA ■ HR develops return- market placement. deferrals & furlough to -work guidelines ■ HR Recruitment for management ■ Entire Recruitment Team nearly fully Team turns over. staffed — 02/2024. # of City Staff 1,034 1,034 956 1,018 1,063 (FTE) Reductions in Staff 0 Froze 76 positions 78.85 2 2 New Positions 0 0 20 63.85 47.25 FT 9.84 PT Employee Separations 82 98 113 90 33 (Full-time Staff) Employee Separations 120 64 86 85 70 (Part-time Staff) Overall New Hires 169 78 228 227 126 Source: Data provided by HR Staff Item 16: Staff Report Pg. 14 Packet Pg. 229 of 281 Item 16 Attachment A - Recruitment HR & Recruitment Staffing L Strategic Plan While facing increased recruitment needs, the HR Department experienced loss of its recruitment staff. (From our work with other public agencies, turnover in HR and specifically in recruitment divisions has been trying, but sadly a common situation in the last few years.) The City's Chief People Officer retired in June 2022 and the Assistant HR Director was promoted. The Assistant Director position was vacant 60% of the time from June 2022 to October 2023. This loss of management capacity created overall workload impacts and time delays. ■ In the last 5 years, 63% of HR Department employees that separated from City service were from the Recruitment/Selection Division. ■ The entire Recruitment/Selection Division turned over between June 2021 and December 2021. Today, the Recruitment Division is almost completely staffed. To augment staffing, the department has brought on outside recruiters and part- time staff to add capacity and assist with the workload. A key recruitment position has been vacant since July 2021 (after numerous failed recruitments) and was just filled in February 2024. ■ While the new team is characterized by positivity and hard work, they lack extensive and seasoned experience in recruitments. To enhance the credibility and validity of the division's efforts, there HR Work & Recruitment Team — The Journey Since 2020 March 2020 COVID ` ' 20 FTE added Restorative Budget #1 Restorative Budget #2 • . 64 FTE added 47 FT & 9.8 PT added 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 Frozen positions, layoff Return -to -Work notices, bumping Guidelines Negotiating COLA deferrals & management furloughs Negotiations — salary to above median market placement Recruitment Vacant Assistant HR Director Fully Team Turns position 60% of time Staffed Feb. Over June Dec from 6/22-10/23 2024 . 2021 is a pressing need for increased high-level HR recruitment expertise and management oversight. Human Resource Liaison Program In the Fall of 2021, HR created a Human Resources Liaison (HRL) program to expedite hiring by formally utilizing/partnering with department staff to work on recruitments in conjunction with HR. The pilot program was from November 2021 to March 2022 and the full citywide rollout from March 2022 to December 2022. The initial program with eleven (11) HRLs helped reduce recruitment process time by about 30%. Since that time, the HRL program has suffered due to the loss of recruitment management staff to provide oversight, direction, and management plus staff turnover in departments. The HRL program, while developed as the right concept and approach to recruitment services, continues to operate in its infancy and building stage. It is also important to note that the HRL program takes management oversight, training, and active partnership and engagement from centralized senior recruitment staff. A new certification program underway by HR will provide different levels of trained HRLs to provide greater empowerment to departments and better clarity for the sharing of roles and responsibilities related to recruitments between central HR and the departmental HRLs. Item 16: Staff Report Pg. 15 1 1 Packet Pg. 230 of 281 The City's vacancy rate and vacant number of positions have not returned to pre -pandemic patterns at this time. This is n , Z. as added significant new positions in the last two fiscal years to rebuild service levels and staffing while employees were still exiting the workforce. Below are charts showing the history of vacancies, vacancy rate, and employee separations. Vacant Positions - History 20% Vacancy Rate - History 200 174 161.75 136 146.5 15% 17% 150 123.35 130.5 116.25 10% ° 13% 100 12% 11% 50 5% 10% is historically the lowest vacancy rate in Palo Alto. 0 Partial Year 0% Partial Year 2018 2019 2020 2021 2022 2023 Jan 2024 July 2018 July 2019 July 2020 July 2021 July 2022 July 2023 Jan 2024 Key Points from Vacancy Charts 5 -year History of Employee Separations ✓ Vacancy rates are beginning to recover from the high years of FT REGULAR EMPLOYEES - Separations & New Hires 2021 and 2022; however, Palo Alto has not returned to pre- 140 pandemic vacancy or recruitment times. 120 100 ✓ HR staff reported that the lowest historical vacancy rate for Palo 80 Alto was 10%. 60iiiiud ✓. i Employee retention rates are higher; for the first six months of 0 FY 23/24, there have only been 33 separations, a trending FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 YTD reduction for the year. ■ Separations 82 98 113 90 33 ■ New Hires 88 41 100 133 60 Part-time Employees ■ Separations ■ New Hires The City currently has 506 part-time positions totaling 99.58 FTEs. During the 2021 reduction in force, a large portion of the City's part-time positions were eliminated. As the City has built back operations (reopening libraries and recreational facilities), this part-time workforce is being brought back. This also represents a significant impact on recruitment operations. While the departments with large part-time staff (Community Services and Library Services), assist with these recruitments, this rebuild plus routine seasonal hiring creates additional work for the HR Recruitment Team. HR staff reported that hiring seasonal staff in 2023 was particularly challenging. Partial Year Item 16: Staff Report Pg. 16 1 1 Packet Pg. 231 of 281 Item 16 January 2024 Data -- Vacant Positions By Departments Attachment A - Recruitment As of January 2024, the vacancy rate for the City was 13.7% with 146.5 vacant positions. Yet, the overall City vacancy rate ing faced by Strategic Plan individual departments. While generally the focus for recruitment priorities should be placed on those departments with hiriei VdLdIILy Id1S, II IS so important to understand the deeper operational needs of specific positions that may also need to be reviewed. Clear and regular recruitment strategy sessions need to be held to determine which positions are important to departments to fill and which positions are important to the City overall rather than "first in and first out". VACANCY INFORMATION BY DEPARTMENT - FULL-TIME POSITIONS (January 2024 data)*pending final review FTE COUNT & VACANT POSITION RECRUITMENT STATUS VACANCY RATE PROFILE OF VACANT POSITIONS Total FTE Vacancy New FT Current FT Total FT Requisition In Requisition Department (FY 23/24 Rate Positions Vacant Vacant Progress/Open Position Not Filled Budget) Full -Time FY 23/24 Positions Positions Recruitment Submitted* Administrative Services 57.5 12% 1 6 7 1 2 4 City Attorney's Office 13.0 8% 0 1 1 1 0 0 City Clerk's Office 5.0 40% 0 2 2 1 0 1 City Manager's Office 13.8 13% 0 1.75 1.75 1 0 0.75 Community Services 79.9 4% 2.75 0 2.75 1 0 1.75 Fire 110.0 13% 2 12 14 4 0 10 Human Resources 19.0 16% 2 1 3 2 1 0 Information Technology 34.0 9% 2 1 3 0 0 3 Library Services 49.0 16% 4 4 8 3 0 5 Office of Transportation 15.0 27% 2 2 4 0 0 4 Planning & Development 59.0 14% 3 5 8 2 5 1 Police 144.0 13% 5 13 18 15 0 3 Public Works 206.0 17% 4 30 34 19 0 15 Utilities 258.0 16% 2 38 40 15 2 23 TOTAL 29.75 116.5 146.5 65 10 71.5 1063.2 13.7% 20% 80% 100% 44% 7% a 49/0 ■ 13.7% is the City Vacancy Rate as of January 2024. ■ 20% of vacant positions are new positions added to the budget in July (FY 23/24 budget). The restoration of positions is adding to the recruitment workload. ■ 43% of Departments are experiencing a vacancy rate of over 15% which creates larger impacts on services, morale, and productivity. ■ 44% of the vacant positions are currently being recruited for by the HR Team and HRLs. ■ 49% of the vacant positions are in a stage of "No Requisition Submitted" which means that departments have not been requested to start the recruitment process. There are a variety of reasons why the requisition has not been submitted. For example, a department may be underfilling a position, analyzing whether to restructure a vacant position, engaging in meet and confer with labor, utilizing part-time workers on an interim basis to perform the work, or re -purposing labor costs for other alternative staffing strategies such as the use of temporary employees or consulting services. Also, a department may be keeping a position vacant for salary savings. Through this assessment and report creation, the HR team found data inconsistencies which are currently being resolved. This report shows the current state of data prior to implementation of go - forward fixes. Item 16: Staff Report Pg. 17 I I Packet Pg. 232 of 281 Item 16 Attachment A - Recruitment Strategic Plan January of 2023 started very strong with the highest number of applications due to the annual recruitment for the Firefigh pplications. The application numbers for February through June of 2023 were lower than in 2022 but became stronger in the second half of the calendar year. For 2022, the City had 8,278 total applications for regular positions, and in 2023, the number decreased slightly to 8,045 - a 3% reduction. A more detailed look at applications in 2023 shows a total of 10,075 applications comprised of 8,045 applications for regular/full-time positions and 2,030 applications for part- time and seasonal recruitments. Yet, as staff reviews applications for completeness, meeting minimum qualifications, and sorting to • 2fl27Ar 1t�r,s • 2023Arrhr t,o . those that are most qualified, the application pool shrinks dramatically from 8,045 to 3,515 (43%). This is a natural vetting process, yet it means that more applications are required to find qualified candidates. 2022 and 2023 Total Applications by Month 2023 Application Profile m REGULAR POSITIONS w +. HOURLY / SEASONAL Total Application * Qualified Applicants Regular Positions Only; Calendar Year Less 604: Incomplete / Duplicate Applications Less 1,464: Not Meeting Minimum Qualifications Less 2,462: Not Best Qualified; Not Interviewed 515 -2023 Qualified Applications Only 43% of applications were qualified for consideration Item 16: Staff Report Pg. 18 Packet Pg. 233 of 281 Positions Recruited For In the year 2023, there were 157 full-time positions filled through recruitments. However, this number is underrepresented. Multiple postings of the same position (including unsuccessful recruitments) are not listed separately and are therefore invisible. With frequency, a position is posted and then reopened when not enough qualified candidates are secured. This creates double work for Human Resources and the departments and extends the timeline and vacancy impacts in the City. The data for multiple postings is not present at this time. (The City also does not utilize eligibility lists so each vacant position requires a new recruitment.) Utilities is the largest recruitment customer with 53 recruitments (34%). Applications Received by Department In the year 2023, there were 8,045 applications submitted for full-time positions. Utilities received 2,138 applications representing 27% of the City's total applications. Item 16 Attachment A - Recruitment 2023 - Total Number of strategic Plan Administrative Services Office of Emergency Services City Attorney's Office Office of Transportation City Clerk's Office City Manager's Office Information Technology Fire Human Resources Police Library Community Services Planning & Development Public Works Utilities Office of Emergency Services (1) 2023 - Total Number of 40 CityAttorney'sOffice(2) 49 Office of Transportation (2) Applications (Full-Time/External) City Clerk's Office (3) City Manager's Office (3) Administrative Services (6) Information Technology (3) Human Resources (5) Fire (4) Planning & Development (15) .1 Public Works (20) Library (14) Utilities Community Services (15) ■ 27% of applications Police (11) 1. ■ 34% of recruitments Utilities (53) Note: Numbers in the legend are the number of recruitments by department in 2023 Item 16: Staff Report Pg. 19 1 1 Packet Pg. 234 of 281 Item 16 Minimal Applications Received by Departments Attachment A - Recruitment The overall number of applications received is an initial lens to review recruitment activity, but the most important questi cations were Strategic Plan deemed qualified for consideration and inclusion in an assessment/interview process. How much choice did the hiring departments naver I ne numbers become more revealing with this analysis. ■ 47% of the recruitment had less than 10 "qualified" applications. ■ 63% of the recruitments had less than 15 "qualified" applications. All City departments could use more qualified applications to choose from for future employees. The chart below shows the most impacted departments. Overall, there is a need for greater marketing and advertising to help locate more qualified candidates for consideration by departments to join Team Palo Alto. Minimal Applications Per Recruitment Less than 10 / Less than 15 47% 63% Recruitments Recruitments with 10 or less with 15 or less applications applications Deoartments Most Imoacted: 100% - OES 61% - Utilities 50% - Administrative Services 50% - Fire 50% - Library 50% - Planning & Development Deoartments Most Imoacted: 100% - OES 79% - Community Services 78% - Utilities 67% - Administrative Services 67% - Planning & Development 67% - Public Works 60% - Library Item 16: Staff Report Pg. 20 Packet Pg. 235 of 281 jAICIIJ Item 16 SECTION 3 - FINDINGS & RECOMME Attach St at gicRPlan fitment S Recruitment processes have evolved significantly in the last 15 years, leveraging technology to streamline operations and enhance candidate experiences. Automated applicant tracking systems reduce the manual workload for recruiters. Moreover, the proliferation of online platforms and social media networks enables recruiters to reach a broader pool of candidates, fostering diversity and inclusion. Additionally, the adoption of video interviewing tools facilitates remote assessments, enabling recruiters to evaluate candidates regardless of geographical and timing constraints. These advancements not only expedite the hiring process but also promote transparency and accessibility, and ultimately result in better matches between candidates and employers. Efficient and effective recruitment processes are crucial because filling vacancies promptly is essential. Through MRG's analysis and from discussions with HR and various departments, examples of success and areas for enhancements were identified. Prolonged timelines and communication disconnections between HR and line departments are causing frustration and inefficiencies. Overall, prioritizing strategy, efficiency, flexibility, active management, and empowerment within the recruitment process can address these concerns. Recruitment Staff New HR recruitment staff brings fresh perspectives, dedication, and positive energy to the recruitment arena. Central HR staff and HR Liaison recruiters take genuine pleasure in meeting candidates, investing time to truly understand them and support their application process. ■ The HR Liaison program is invaluable, though additional staffing would optimize its effectiveness. Departments are seeking more training, support, and empowerment for the Liaisons. Currently, Departments are adding more HRLs and HR has launched a more comprehensive training program with different levels of differentiation and expertise which will then be linked with greater authority and responsibility. The Recruitment/Selection team has fostered a culture of creative innovation. They experiment with new ideas and tools, like HireVue, which have proven successful. Occasionally, trial programs may be less successful, as seen with the Linkedln advertising pilot in 2017, which yielded few candidates and no hires. This culture of experimentation and entrepreneurship is vital in the ever-changing recruitment landscape. Technology & Tools ■ Tools like HireVue (on -demand candidate interviews) streamline the interview process by allowing candidates to record their answers to questions and then individual assessors can review the interview asynchronously. Palo Alto has embraced a digital cloud application tracking system with best practice components through NEOGOV which facilitates administrative tasks and recruitment processing. This digital system automatically posts jobs on numerous job boards. The City has creatively leveraged NEOGOV's modules to create digital interview packets. Through NEOGOV's OnBoard module, E -offers and paper requirements are gathered and processed digitally. Palo Alto has completely shifted to a paperless recruitment process. Marketing & Branding ■ Many public agencies continue to post complete job descriptions as their "advertisement" for open jobs. Public agency job descriptions are quite lengthy and not inviting to candidates. Several years ago, Palo Alto moved to creating more enticing job postings. Departments help create a summary of the key aspects of the position including ideal candidate descriptions and the "why" of what makes the position enticing. The job postings are branded with Palo Alto's colors and themes as well. Item 16: Staff Report Pg. 21 1 1 Packet Pg. 236 of 281 Item 16 Communications staff has supported the recruitment team in various ways including creating graphics and postin the City's Attachment A - Recruitment social media sites, pushing career information and jobs through a Motivation Monday series on Linkedln, and hig ekly Uplift Strategic Plan Local newsletter to promote new postings or listings that are closing soon. Investment in Compensation & Benefits Above median Flexible The City strengthened its pay by shifting the compensation structure to above -median market placement for salaries, market for Based on this shift, a number of classifications received a 10-20% shift in pay. Approved 4% COLAs for FY 23/24 and FY salaries Benefits 24/25. • Investments have been made in enhancing benefits (both flexibility and value) including (1) allowing employees to take Remote Work 9180 & 4/10 Work compensation increases for healthcare to decrease their premium contributions or to increase their monthly pay, (2)Options Schedules implementing paid parental leave for 6 weeks; (3) piloting a childcare subsidy program with City contribution of $5,000 per year, and (4) piloting opportunity for Palo Alto employees to enroll their children in Palo Alto Unified School District. • By recognizing the shift to a more mobile workforce, the City now offers (1) remote work offered for 3 days/week as standard if applicable for the position; (2) alternative work schedules with 9/80 as a norm, and (3) 4/10 schedule available for maintenance and other staff through a review process. KEY FINDING #1 KEY FINDING #2 KEY FINDING #3 KEY FINDING #4 Need to boost the new HR Shift from general marketing Streamline processes and improve Continue strategic initiatives to Team's management support, to active advertising & data/reporting for greater build employee pipeline & capacity & capabilities, candidate sourcing. efficiency & effectiveness. opportunities. Need more strategy and management for leadership of the recruitment program. Add Recruitment Division Manager. HR Recruitment Team is just returning to full capacity. Committed and caring HR Team; growing in their experience. HR Liaison Program is the right concept; still in its infancy & rebuilding. Add active marketing expertise to the HR Team; add data analytical support in HR. Using City social media feeds and standard job board posting. Need more qualified and interested candidates to apply for positions. Minimal direct advertising for positions and minimal active candidate sourcing. Customer communication & experience can be improved. Need more compelling sites and content to tell Palo Alto's story as an Employer of Choice. No systems or infrastructure in place for active advertising and candidate sourcing. Will need to build systems and content. Need more communication with departments as business partners and engagement with candidates for improved hiring experience. Streamline recruitment process; front load critical path decisions; re - engineer with cross -functional Talent Strike Teams. Constantly evaluate, iterate, and improve. Strong software platforms in place; need better integration & data for management decision -making. Limited metrics and key performance indicators to monitor progress and adjust for improvements. Review hiring requirements; shift to more skills based hiring versus degree and local government experience. Continue to foster internship and fellowship programs to build a pipeline for students to enter a local government career. Build additional apprenticeship programs and partner with junior colleges and universities. Build local outreach programs for positions requiring more career technical backgrounds. Item 16: Staff Report Pg. 22 I I Packet Pg. 237 of 281 1. Candidate Experience 7. Recruitment Management Expertise 2. Hiring Manager/Department Communication & Partnership 8. Recruitment Metrics 3. Branding as Employer of Choice 9. Internships, Apprenticeships & Partnerships 4. Software & Tools 10. Screen for Skills not Requirements 5. Recruitment Dashboards & Data Integration 11. MOU Process Constraints 6. Human Resources Liaison Program 12. Recruitment Process Improvements 1. Candidate Experience: Today's candidates have high expectations for active and authentic communication. Too long of a wait with no communication and the candidate assumes that the position isn't available or there isn't interest in their application ... and they move on. The consultant team submitted a "secret shopper" applicant in two recruitments (Equipment Maintenance Serviceperson in Public Works and Water Quality Plant Operator 1/Operator Trainee in Utilities) to gain an understanding of a candidate's experience. Below are the results with more information in Appendix D. Secret sh000er Analysis Positive Aspects of the Application Process: ■ Easy job discovery on the website. ■ Seamless website navigation. ■ Clear and accessible HR contact information. ■ Transparent salary information is presented prominently at the top. ■ Well-defined expectations for the job outlined Recommendations for Improvement: ■ Improve active communication with candidates. Since the first email stating receipt of the application on 12/19/2023, no additional emails have been received as of the end of January. ■ Enhance the prominence of the benefits section on the website. ■ Include links in the job posting for additional information and explanations. ■ Provide further clarification on items that require more explanation, such as work schedule and PERS retirement. ■ Receipt of a well -structured confirmation email ■ Add specific guidance for out-of-state applicants or those who need to travel for the position. of application received. • Ensure consistent placement of contact information on every page for easy access to ■ Appreciation for the immediate follow-up in the inquiries. application process. • Integrate a more detailed timeline of the hiring process for applicants' better understanding. Providing a high level of candidate communication and engagement requires dedicated time and a strategic approach from recruiters. Traditionally, local government agencies focused solely on selected candidates, neglecting communication with those not chosen to save time and mitigate liability. Unfortunately, this approach misses valuable opportunities. Viewing each applicant as a potential future employee, regardless of selection for a specific role, allows the city to cultivate interest in future opportunities and establish a following of candidates interested in working for Palo Alto. As Maya Angelou's quote emphasizes, it's about how you make people feel and this is a critical component for successful employee recruiting. This marks the initial step in transforming candidates into future employees. "I've learned that people willforget what you said, people willforget what you did, but people will never forget how you made them eel." -Maya Angelou Item 16: Staff Report Pg. 23 Packet Pg. 238 of 281 2. Hiring Manager / Department Communication & Partnership: Departments expressed a strong desire for improved Item 16 ment, Attachment A - Recruitment particularly with the Hiring Manager, at earlier stages and throughout the recruitment process. Some management p regular Strategic Plan recruitment and comprehend the process well. Conversely, other hiring managers may only recruit sporadically, perha'is utiLe d yet. M LJCSL pidtice involves involving the hiring manager early in the process to discuss the procedure, roles, responsibilities, and expectations. Strategic discussions upfront regarding outreach strategies, targeted marketing ideas, panel composition, timeline, and desired candidate profile are all essential components. More consistent updates and an easy to review recruitment dashboard with details by departments is needed to improve communication and the partnership between HR and the departments. 3. Branding as Employer of Choice: Establishing a robust employer brand is crucial for attracting top talent. Palo Alto possesses distinct and compelling assets that can be actively marketed to potential employees. While the City enjoys name recognition and a strong reputation, it remains vital to convey why Palo Alto stands out as an Employer of Choice in a captivating, contemporary, and compelling manner. Additional focus and marketing efforts are necessary to articulate why candidates should aspire to join the Palo Alto team. 4. Software & Tools: The HR Team utilizes three main modules within NEOGOV, a comprehensive cloud -based software, for recruitment processes. Firstly, "Insight" serves as NEOGOV's applicant tracking system, enabling HR staff to efficiently screen candidates and maintain active communication throughout the process. Secondly, the "Online Hiring Center" (OHC) empowers department users to create, approve, and manage requisitions, as well as review and screen application materials. HR has adeptly utilized the OHC to generate comprehensive digital interview packets for assessors and candidate information. Lastly, yr "OnBoard" facilitates the creation of personalized onboard portals, digital paperwork submissions for new '[ xl.s,_ hires, and task checklists with automated reminders to streamline onboarding processes. While these modules provide robust functionality, additional features from NEOGOV may further enhance recruitment efforts. For instance, the "Attract" module offers a customer relationship management system to _ automate recruiting communications and source candidates from past hiring cycles, events, and social media. Additionally, "Analytics & Reporting" which was updated in January 2023 provides comprehensive {, management reporting, although Palo Alto staff requires more training to fully utilize this module. Additional training by NEOGOV can ensure optimal utilization of all of the software's capabilities. _ 1/ 5. Recruitment Dashboards & Data Integration: The absence of an easy -to -access, current, and centralized master recruitment dashboard in Palo Alto is causing communication issues and frustrations within the organization. An overall recruitment dashboard serves as a centralized tool for tracking and managing the various stages of the recruitment process, including candidate status, hand-offs between different stakeholders, and the progression of recruitments through different phases. This communication gap is primarily due to the lack of integration between the City's Applicant Tracking System (NEOGOV) and its financial system (SAP), which houses position control, hiring, and payroll data. There are also some data issues between NEOGOV's modules. Currently, creating a current recruitment vacancy report entails extensive cross-referencing of data from both systems by HR staff, often involving redundant entries and position and vacancy verifications. Compounding this issue is the absence of a Human Resources Information System (HRIS), which would typically integrate with NEOGOV, thereby facilitating seamless data flow between systems. Addressing the challenges posed by data integration issues and the absence of management reports is crucial. The City anticipates incorporating an HRIS into its upcoming finance system overhaul, slated to commence within the next year. However, based on MRG's experience, such upgrades are intricate, time-consuming endeavors that may take several years to fully implement. Therefore, there is an immediate need for an interim solution to enhance management information and recruitment data accessibility across the organization, including central HR, line departments, the Executive Leadership Team (ELT), the City Manager's Office, and the City Council. Item 16: Staff Report Pg. 24 1 1 Packet Pg. 239 of 281 Item 16 6. Human Resource Liaison Program: The HRL program acts as a conduit between HR and line departments, aiming to support, Attachment A - Recruitment establish communication channels, and facilitate smoother recruitment and onboarding processes for new hires. Initi ram is Strategic Plan undergoing a renewed investment phase. Below are ideas generated during the interview process, with many already . • Invest in Continued Formalized Training for HRLs: Providing ongoing formal training for Human Resources Liaisons (HRLs) is crucial to ensure they possess the necessary skills and knowledge. HR has recently launched a new HRL certification program. • Enhance Communication and Coordination: Strengthen communication and coordination between HR and HRLs to promote collaboration and efficiency. Regular gatherings for HRLs can foster camaraderie and knowledge sharing, with meetings held weekly to review and prioritize recruitments, enabling ongoing discussions on recruitment handling at the departmental level. • Utilize HR Staff Expertise: Leverage HR staff expertise for hard -to -fill or unique positions requiring specialized oversight. HR can also take the lead on positions spanning multiple departments to optimize economies of scale and efficiency. • Create Recruitment Guides: Enhance HRLs' retention and application of knowledge by providing training materials such as user-friendly scripts, short videos, and one -page cheat sheets derived from the extensive Recruitment Guidebook. Recruitment Management Expertise: Adding a Recruitment Division Manager position would significantly enhance the strategic management and effectiveness of the recruitment process. This role would offer expertise, strategic direction, and mentorship vital for navigating the intricacies of modern recruiting. By closely collaborating with department heads and hiring managers, the manager can discern specific hiring needs, tailor recruitment strategies accordingly, and offer guidance on talent acquisition strategies. Additionally, the Manager would provide strategic leadership in devising and executing innovative recruitment initiatives, leveraging their expertise in recruitment trends and technologies to attract top talent effectively. Beyond strategic duties, the Recruitment Division Manager would play a pivotal role in mentoring and developing the recruitment team. Ensuring staff members are equipped with the necessary skills and knowledge to excel in their roles, the Manager would provide training on recruitment best practices, conduct performance evaluations, and foster a culture of continuous learning and improvement within the division and among Human Resource Liaisons. Recruitment Metrics: Tracking retention and turnover rates, vacancy rates, and key performance indicators (KPIs) is vital for evaluating recruitment effectiveness and overall HR performance. Establishing specific recruitment -related metrics like time -to -fill, cost -per -hire, and candidate experience allows HR teams to assess performance objectively and identify areas for enhancement. Increasing awareness of these metrics among HR staff and stakeholders promotes transparency and informed decision -making, fostering continuous improvement in recruitment processes. By proactively monitoring and addressing key metrics, organizations can optimize recruitment strategies, reduce turnover, and elevate HR performance. Below are typical recruitment metrics. METRICS DESCRIPTION Application Completion Rate % of candidates that complete the application process. Applications per Job Posting # of applications per job posting Time -to -Hire Days from job posting to start date. Time -to- Fill Days from opening a requisition for a position, determining recruitment strategy, marketing, to acceptance of offer. Ad -Cost -to -Hire Expenditure per recruitment spent on advertising and outreach. Source of Hire Source of where the candidate learned about the recruitment. Candidate Experience Feedback and survey of candidates through the recruitment process. Offer Acceptance Rate # of candidates that accept an employment offer. First -Year Attrition Rate # of employees that leave during their first year of service. Item 16: Staff Report Pg. 25 1 1 Packet Pg. 240 of 281 Item 16 9. Internships, Apprenticeships & Partnerships: Palo Alto boasts a rich tradition of fruitful internship programs, a key s rturing talent Attachment A - Recruitment while providing practical experience. These programs also serve as a valuable pipeline for potential future hires. Additi ted successful Strategic Plan apprenticeships, which present opportunities for further enhancement and expansion. Strengthening partnerships wit is instrumental in accessing emerging talent pools, facilitating focused recruitment endeavors, and ensuring a consistent stream of qualified candidates. It will be important to support these programs to continue to build Palo Alto's talent pipeline. 10. Screen for Skills Not Requirements: Traditionally, many local government jobs have specific requirements such as degrees, supervision, and local government experience. With today's talent pipeline, there is the need and opportunity to consider candidates who may not possess all desired qualifications but demonstrate strong fundamental skills, the right attitude, and general aptitude, plus a willingness to learn. By screening our applicant pools differently, we can broaden the candidate pool and uncover hidden potential, ultimately contributing to a more diverse and dynamic workforce. 11. MOU Process Constraints: Several items in Palo Alto's Memorandum of Understandings (MOU) constrain flexibility and slow down the recruitment timeline. Below are some of the MOU parameters that were mentioned by staff. It is important to note that HR staff has tried to negotiate some of these items in the past without success. • 10 -day Posting Requirement — The SEIU MOU requires a 10 -day posting of any position. • Internal Candidate Review First —The SEIU MOU requires interviews of internal candidates first if three or more candidates meet the minimal qualifications. Based on this rule, the City is unable to begin the review of the external candidates until the internal interviews have been completed. Traditionally, this MOU parameter has been interpreted as HR being expected to conduct separate recruitments for each vacancy. Recently, HR was able to bundle recruitments together for faster processing and greater marketing. This is a standard practice in many local agencies. • SEIU Members on Interview Panels —The SEIU MOU requires a represented employee to sit on an interview panel if a panel interview format is being used. At times, Human Resources has found it difficult to schedule SEIU representatives which causes delays. ■ Flexible Staffed & Underfilled Positions —The SEIU MOU requires the City to conduct recruitments for flexibly -staffed and underfilled positions, despite having incumbents in the role for some time and thus, meeting the minimum qualifications of the position. Typically, flexible staff positions are used to designate classifications in a promotional series in which both the entry and journey -level classes are assigned the same kinds of duties, the difference being the range of duties performed, the level of skill required, and the amount of supervision received. Flexible staffing allows departments to hire at the lower -level class in the series, provide on-the-job training, and promote to the next higher level in the series through a non-competitive certification process once the full range of duties is being performed. This is a standard practice in many local agencies. 12. Recruitment Process Improvements: Streamlining the various phases of the recruitment process is paramount. As the quote from Boston Consulting Group below states, the recruitment process needs to be simplified with a focus on the candidate. There are numerous specific suggestions to improve the recruitment process outlined in Appendix A. Our data indicates that candidates' perceptions during the recruitment process significantly impact their decisions. However, many companies still treat recruitment primarily as a corporate procedure, tailored to administrative needs and outdated systems, rather than prioritizing a positive experience for potential employees. Leading employers adopt a zero -based process design, simplifying the process to essential steps and emphasizing the value for the candidate. -Boston Consulting Group Item 16: Staff Report Pg. 26 1 1 Packet Pg. 241 of 281 Item 16 Attachment A - Recruitment Strategic Plan Currently, the City of Palo Alto practices a traditional local government marketing approach. , POSITION are posted on "GovernmentJobs.com" through NEOGOV as the City's job board -- '� MECHANICAL ENGINEER the number one public sector job board in the nation. The Communications Teams posts information about jobs on the City's social media sites including a Motivation Monday series . Apply by January 22, 2022 on Linkedln. Job listings are included in the City's weekly Uplift Local newsletter to highlight Apply your Nvia email to EMAIL ADDRESS new postings or listings that are closing soon. City Hall lobby screens are actively promoting "we are hiring" messages. Departments utilize professional associations and networks to PALO ALTO spread the word about open positions. At this time, limited funding exists to purchase social media advertising or other advertisements. Executive recruitment firms are hired to help market, headhunt, and review candidates at the executive level (Assistant Director, Director, etc.) with separate marketing budgets. In today's tough talent market, active marketing strategies utilizing digital platforms, modern algorithms, and intentional social media strategies to reach candidates are critical to deliver effective talent outreach efforts. For this study, we have evaluated three key components of marketing and outreach in the talent recruitment arena: 1 - Recruiting Strategy By combining targeted digital advertising with effective candidate sourcing strategies, organizations can effectively attract, engage, and hire top talent, ultimately contributing to their success. The primary objective of any recruiting strategy is to attract a large number of leads to develop a top -tier talent pool. Leads encompass individuals who have demonstrated interest in the organization through various actions such as participating in talent networking events, visiting the career site, or engaging with existing employees. Through an active digital talent campaign, an employer can turn leads into candidates; candidates into applicants, and finally employees to join the team. The graphic to the right illustrates a recruiting strategy process. 2- Employer Branding Branding involves shaping and promoting an organization's reputation and identity as an employer. Overall, effective employer branding creates a compelling narrative that resonates with potential candidates, differentiates the organization from competitors, and ultimately helps attract, engage, and retain top talent. consultant team reviewed the City's Career web pages/sites and social media presence. To understand Palo Alto's employer branding, the Item 16: Staff Report Pg. 27 I I Packet Pg. 242 of 281 Career Web Pages & Sites The City's job opportunities website (https://www.cityofpaloalto.org/Departments/Human- Resources/Palo-Alto-Careers) is the central location or hub for all of the City's digital marketing campaigns. In Palo Alto, this is called "Careers with the City of Palo Alto". This is the main location that candidates can go to to learn more about the City as an employer. The image to the right shows the current career pages which are clear, traditional, and informational, but not compelling in way to tell the Palo Alto story of being an "Employer of Choice". The following public agencies can be used as examples that showcase a more persuasive style of candidate attraction: ■ City of Roseville — Strong primary "Job Opportunities" page with visuals, video, employee Item 16 Ia., I De. / " Attachment A - Recruitment Human Resources Strategic Plan Careers with the city of Palo Alto profile, an approachable and culture-themed message from the City Manager, and helpful F J, tips for applying. [Link] / • NASA — Site has strong design, compelling story and content explaining the "why" to join NASA as an employee. The site highlights types of positions, benefits, and culture and provides a pleasing interface for viewers Reasons Link] Social Media SWOT Assessment . [Career Page Link / 5 The consultants reviewed the City's social media accounts to gain an understanding of the City's social media outreach and its impact on Employer Branding. A general SWOT (strengths, weaknesses, opportunities, threats) analysis was performed in addition to a comparison of other agencies' platforms. Greater detail can be found in Appendix C. The City's social media platforms are reaching numerous audiences including candidates and future employees. In general, there is the opportunity to bring more human elements, employee stories, illustrations of department accomplishments, and a more informal friendly voice to the City's social media conversations. Current -- City of Palo Alto's Candidates by Top Sources The City's candidate sources are in the graph to the right. This shows that a majority of candidates come from the City's Career Page, signifying that most applicants come from organic traffic. The second is GovernmentJobs.Com which is the public sector jobs board that NEOGOV's applicant tracking system uses to post to. The third top source is Indeed, which is the first top source that does not solely depend on the candidate to find the job on the City of Palo Alto's main webpage. Data: NEOGOVAnalytics dashboard provided by the City of Palo Alto Targeted Advertising & Candidate Sourcing Percentage of Candidates By Source January 01, 2023 - December 31, 2023 • Applied ■ Eligible U Referred U Interviewed ■ Offered • Hired 80% 60% ro U 40% 0 51 O5 20% liii 111111 UIIII Career Pages CJobs Indeed Coogle careers€ngo... cityofpaloal... glassdoor.c... android.gm Linkedln ziprecruiter_. Targeted digital advertising and candidate sourcing in hiring involve leveraging various online platforms and tools to reach potential job candidates who possess the desired skills and qualifications for a particular position. Here's how it typically works: Source Identifying Target Audience: The first step is to clearly define the target audience or the ideal candidate profile for the job opening. This includes factors such as skills, experience, education, location, and any other relevant criteria. Item 16: Staff Report Pg. 28 1 1 Packet Pg. 243 of 281 2. Creating Job Advertisements & Landing Pages: Once the target audience is defined, recruiters or hiring managers create compelling job advertisements highlighting the job role, responsibilities, qualifications, and benefits. These advertisements can be in the form of text, images, videos, or a combination of these, depending on the platform and audience. In addition, focused landing pages are built for a department or a series of jobs to have a compelling site with rich content and enticing images. 3. Selecting Digital Platforms: There are various online platforms where job advertisements can be posted to reach potential candidates, including job boards, social media platforms (such as Google, Facebook, Indeed), professional networking sites, and industry -specific forums or websites. Recruiters choose platforms based on where their target audience is likely to be present. Today's candidates are also actively applying for jobs from their phones. There are automated tools to actively engage with candidates via their phone and texts as they learn more about the job. 4. Utilizing Targeting Parameters: Digital advertising platforms allow recruiters to target their advertisements based on specific parameters such as location, age, gender, education level, job title, skills, interests, and even browsing behavior. This ensures that the ads are shown to relevant candidates, increasing the chances of attracting qualified applicants. This can also increase the diversity of the candidate pool. Communication is Key: Today's candidates expect regular communication via text messages and their phones. To guide candidates through the process, a sophisticated CRM communication system helps move candidates from being interested to applying. Texting and regular communication keep the candidates engaged and provide continual learning about Palo Alto's opportunities. Optimizing Ad Campaigns: Recruiters continuously monitor the performance of their digital advertising campaigns, analyzing metrics such as click -through rates, impressions, and conversions. They may tweak the targeting parameters, adjust the ad content, or allocate more budget to platforms that are generating better results. See the example below of the level of data and analysis that is monitored and evaluated regularly. Talent Marketing Campaign - Facebook/Instagram Overview Reach by Irnpros;tons. Reach and Freqency Reach Frequency 328,761 101,579 3.24 10`. t — lrnpe..runs — R.edi — Frequency 70K 15 15K 14 5 t0K 13 SK 12 0 11 Sep 25 Sep 29 Oct 3 0c17 Oct 11 Oct 15 Oct 19 ®Engagement by La is. Wets ti ;,ads and Link clicks Website leads Link clicks 5,486 162 1,596 l-264 , l 9 . — cl¢u ;.r) — W.b,ae lead. — Law cldt. 300 15 200 10 ₹ 100 5 0 0 Sep 25 Sep 29 Oct 3 Oct 7 Oct 11 Oct 15 Oct 19 Select date range Conversion by Conversion rate, Leads and Applications Total leads App:.ed 1.84% 567 62 1 24 4% — T.W leads Applied 15 4 3 .0 2 S / 0 0 .jr 77 Jul 10 Jul 79 Aug 15 S.p 7 Sep 70 Oct 9 Item 16: Staff Report Pg. 29 I I Packet Pg. 244 of 281 7. Engaging Passive Candidates: In addition to reaching out to active job seekers, targeted digital advertising can also h Item 16 (dates who Attachment A - Recruitment may not be actively looking for a job but could be open to new opportunities if the right offer comes along. This is par top talent in Strategic Plan competitive industries. Candidate Sourcing: Apart from paid advertising, recruiters also engage in candidate sourcing, which involves actively searching for potential candidates through online channels such as professional networking sites, Linkedln, resume databases, online forums, and social media. Advanced search filters and search techniques are often used to narrow down the candidate pool based on specific criteria. 9. Building Talent Pools: Recruiters often build and maintain talent pools or talent pipelines consisting of qualified candidates who have expressed interest in working for the organization or have been identified through sourcing efforts. These talent pools can be leveraged for future job openings, reducing time -to - hire and recruitment costs. 10. Virtual Recruitment Events: With the right outreach, virtual recruitment events are effective ways to showcase an organization. Specifically, these events do the following: (1) meet candidates where they are; decreasing barriers to attend; (2) earn candidates' attention and desire to apply; (3) show the culture of the organization with current employees presenting and talking to candidates; (4) community building with transparency and genuine connection with candidates; and (5) re -connection with interested candidates using smaller breakout rooms. Pilot Test — Utilities & Public Works Departments To pilot the approach above, the City Manager approved a targeted advertising and candidate sourcing program for two positions in the Utilities Department and Item 16 SECTION 4 - RECRUITMENT STRA Attach Strategic RPlan tfitment N Below is the summary of the Recruitment Strategic Plan. More details on each listed item in shown in the Strategic Plan below. PALO ALTO - RECRUITMENT STRATEGIC PLAN #1 #2 #3 #4 Boost Recruitment Team Activate Marketing, Streamline Process Invest in Capacity & Capabilities Advertising & Sourcing & Uplift Data/Metrics Talent Pipeline Strategic Management Branding, Advertising & Candidate Process Improvements Pipeline Initiatives 1.1 Deploy Strategic Planning & Sourcing 3.1 Streamline Recruitment Process: 4.1 Review Job Requirements & Oversight to Recruitments 2.1 Leverage Employee Insights & Focus on Critical Path Actions Broaden the Candidate Pool Staffing & Capacity Custom Messaging 3.2 Streamline Phase 7: Pre- 4.2 Build Additional Apprenticeship 1.2 Add "Recruitment Manager" 2.2 Enhance the City's Job/Career boarding — Final Candidate to Programs New Position as Division Website: Elevating Candidate Start Date 4.3 Continue Internship and Manager Experience and Brand Image 3.3 Candidate Engagement Surveys Fellowship Programs 1.3 Continue to Augment 2.3 Streamline City Job Listings: 3.4 Upgrade Exit Interview Process 4.4 Build Local Outreach Programs Recruitment Division with Simplifying Access and 3.5 Explore MOU Modifications 4.5 Implement "Stay Interviews" Supplemental Staffing Information 3.6 Continually Measure, Evaluate, 1.4 Add Data Anal tics Support y pp 2.4 Craft Compelling Content to Communicate, and Improve 1.5 Use Consulting Services initially, Strengthen Palo Altos Employer then add "Digital Talent Brand Data & Metrics Recruiter" Position 2.5 Build Recruitment Landing3.7 Invest in Data Integration, Pages & Deploy CRM for Active Utilization & Dashboards 1.6 Support & Grow the HR Liaison Candidate Engagement 3.8 Build Recruitment Metrics Program 1.7 Invest in training for HR Team 2.6 Invest in Targeted Digital 3.9 Workforce Analysis Report Advertising 2.7 Host Virtual Recruitment Fairs General Marketing 2.8 Continue to Optimize Social Media for General Marketing 2.9 Foster Employee Ambassadors 2.10 Continue to Utilize Linkedln Item 16: Staff Report Pg. 31 Packet Pg. 246 of 281 Item 16 Attachment A - Recruitment Strategic Plan STRATEGIC PLAN RECRUITMENT STRATEGIC PLAN Recruiting top talent necessitates proactive marketing and branding efforts, along with the establishment of a robust talent pipeline. Successful recruitment operations prioritize building their employer brand, treating candidates as valued customers and potential future team members, and implementing streamlined systems in collaboration with departmental partners. Currently, there is a pressing need for Palo Alto to intensify its efforts, focus, and resource allocation to address the numerous vacant positions across the organization. By filling these budgeted vacancies, Palo Alto demonstrates its commitment to existing employees, leading to a more balanced workload and reduced stress over time. Moreover, bolstering staffing levels in community services enhances overall service delivery by attracting the highest caliber of talent. Optimizing HR staffing levels and fully leveraging modern recruitment tools are imperative steps to enhance the City's recruitment program. Implementing an intentional and cohesive marketing campaign through the strategic use of social media advertising platforms can significantly amplify recruitment efforts. Recognizing that the recruitment process, as well as the first day and initial months of an employee's tenure, profoundly impact their overall satisfaction, engagement, and retention. The Recruitment Strategic Plan centers on four key areas, encompassing work in progress, general findings, ongoing initiatives, and actionable recommendations for improvement. Item 16: Staff Report Pg. 32 Packet Pg. 247 of 281 Item 16 Attachment A - Recruitment Strategic Plan In Process: ■ Regular meetings with the City Manager, Assistant City Manager, HR Director, and Assistant HR Director have been initiated to keep focus and priority on recruitment activity and hiring. ■ After several failed recruitment attempts, HR hired a new Senior HR Administrator who started in February 2024. ■ Currently augmenting recruitment staff with external recruiters, contract recruiters, and two part-time Management Specialists. Increased one Management Specialist to 40 hours per week for the rest of FY 23/24 (cost estimate of $45K). ■ Training in process for seven additional HR Liaison positions (four in Public Works and three in Community Services). ■ Developing a formal certification program for the HR Liaison Program to provide greater support and responsibility based on level, role clarity, and authority. A formal recognition program for HRLs will also be created. o Level 1— Provides administrative and logistical support to HR or department HRLs. o Level 2 — Provides entry-level professional -level recruitment actions on active department recruitments. Screens applications, communicates with candidates, drives the key steps of the recruitment, develops questions and tests in coordination with HR & department management staff o Level 3 — Provides all of Level 2, plus has expertise in negotiating the employee's pre -boarding offer letter and other areas of preboarding items. ■ Sent two HR staff to the annual NEOGOV user conference this year, plus funding for all recruiters to attend in the coming year to improve software competency. ■ Trained HR Team on how to create engaging job postings versus using the full job descriptions; added branded logos and ideal candidate descriptions. Strategic Management 1.1 Deploy Strategic Planning & Invest in new management capacity and deploy more strategic oversight of the City's recruitment program. Shift from Oversight to Recruitments triaging recruitments to strategic planning by creating a master plan for how to roll out the recruitments with prioritization, resource management, communication, and efficiency. ■ In the interim, create an integrated spreadsheet (Recruitment/Vacancy Project Plan) that tracks current vacancies by department and current recruitments in process by department. In the future, use an umbrella CRM (Candidate Response Management system) to have a dashboard and easily accessible management reports. ■ Use core project management skills (GANTT charts) to manage the City's current and upcoming recruitments. This can help with visualization in scheduling, managing, and monitoring specific tasks and resources in a project. By outlining all recruitments, HR can determine the overall timing and the level of additional resources/support needed. ■ Continue to give departments a critical voice in outlining their recruitment needs and priorities, but add a citywide lens with input from the City Manager's Office and HR executive management. ■ Develop an overall strategy for completing backlogged recruitments due to the peak demand of the City's staffing rebuild. One recommended strategy is to add external recruiters to focus on Utilities and Public Works vacancies to help them through their backlog and relevel the vacancy list. ■ Embrace HR's role in looking at efficiencies to bundle recruitments and strategically manage recruitment priorities and flow. Staffing & Capacity 1.2 Add "Recruitment Manager" The complexity and importance of recruitments requires a new division -level management position to develop priorities, New Position as Division improve systems, manage staff, and lead new digital marketing programs specifically dedicated to recruitments. This role Manager would offer expertise, strategic direction, and mentorship vital for navigating the intricacies of modern recruiting. The Item 16: Staff Report Pg. 33 1 1 Packet Pg. 248 of 281 Item 16 Recruitment Manager would deliver additional training, mentoring, and support l k Team and Attachment A - Recruitment HRLs. Strategic Plan Continue efforts to augment recruiting staffing with additional part-time assistanc� or consuitant assistanc to expand 1.3 Continue to Augment Recruitment Division with staffing resources for Recruitment/Selection. Continue part-time help to assist with para-professional and administrative Supplemental Staffing duties related to recruitments including scheduling, pre -boarding, etc. Develop an overall strategy for completing backlogged recruitments and then add specific recruiting capacity as needed. 1.4 Add Data Analytics Support Add database and analytic support to the HR team by starting with consulting or part-time assistance to build a CRM (customer relationship management software) and/or a recruitment dashboard (see Recommendation 3.7). Critical investment area to improve communication, coordination, and data -enabled decision -making. 1.5 Use Consulting Services Add marketing and candidate sourcing expertise for the HR Recruitment Team to assist with social media, marketing, and Initially, then Add "Digital digital advertising. After a digital advertising program is built through consultants and integrated into the recruitment Talent Recruiter" Position program, a new internal position should be added to drive this work. Specific duties include: ■ Serve as the internal expert on digital advertising and candidate sourcing. Support other HR staff to grow their knowledge and competencies. ■ Conduct active candidate sourcing to increase the number and quality of candidates in recruitments. ■ Hold virtual recruitment and career fair events to generate interest in Palo Alto jobs with specific targeting of open positions. ■ Actively place advertisements and post to key social media platforms. ■ Communicate directly with candidates to develop interest and commitment. Hand-off to other recruitment staff for follow-through and continuing communication. ■ Coordinate social and digital media efforts with the City's Communications staff. ■ Implement candidate and hiring manager surveys to gain their feedback and experience for immediate implementation of necessary adjustments to recruitment efforts. 1.6 Support & Grow the HR Review and refresh the HR Liaison Program. Liaison Program ■ Create formal oversight of department HRL staff with linkage to central HR staff. Reinforce the collaborative and strong partnership between HR and HRLs by ensuring engagement during the full recruitment cycle. ■ Actively coordinate support, screen, and train to grow HRL's capacity and capabilities. Retain strong business partner relationships with Department management. ■ Hold regular meetings for coordination with HRLs including Brown Bag Lunch and Learn Sessions with HRLs to facilitate learning through knowledge transfer and sharing of ideas including joint problem -solving. ■ Augment the "Recruitment Guide" with shorter project management tools, cheat sheets, and scripts to support HR staff and HRLs in the recruitment process. Utilize short videos for quick training tips. ■ Celebrate the work and achievements of HRLs. 1.7 Invest in Training for the HR Create regular professional development opportunities for HR recruiters and HRLs. Team ■ Marketing / Digital Advertising Training — Utilize outside consultant expertise for training in digital advertising and social media marketing. Utilize Communications staff to provide training on the City's website and social media accounts. Increase exposure, knowledge, and aptitude. Provide regular boot camp with virtual monthly coaching/training. ■ Project Management Training — Provide project management training and tools to help HR Recruiters manage various recruitments effectively and efficiently. Item 16: Staff Report Pg. 34 1 1 Packet Pg. 249 of 281 Item 16 Attachment A - Recruitment Strategic Plan Completed: ■ Posting recruitments on the City's social media platforms. Exploring specific social media strategies to increase digital engagement. Purchasing some digital advertisements with the current PIO budget. Posting both job -specific and general 'we are hiring' posts. ■ Job listings in Uplift weekly e -newsletter. Highlighting new postings/listings that are closing soon. (over 50k subscribers, 45% open rate) ■ City Hall Lobby screen activation 'We are hiring' with link to www.cityofpaloalto.org/careers. ■ Tie job openings specific to City priorities such as the recent DEI program manager listing included in the recent race and equity progress blog. ■ Created the Motivation Mondays series on Linkedln. ■ Added Careers to the City's homepage for additional exposure (over 1 million unique visitors annually). ■ Add/follow hiring partners, industry associations, etc. on Twitter, Facebook, Linkedln, and Instagram. ■ Refresh/rebranded the City's Careers page in partnership with the HR team. Adding ongoing content such as recent commute programs information. ■ Updated City's GovernmentJobs.com opening employer description. ■ Refreshed Recruitment templates for website, social media, and other digital communications. In Process: ■ Enhancing Linkedln recruitment strategies; ongoing presence overall about City recruitments, adding new job openings as they are posted. ■ Employee recognitions at Council with an Instagram series. ■ New Employee Orientation Welcomes - engage on social media with a focus on Linkedln. Branding, Advertising & Candidate Sourcing 2.1 Leverage Employee Insights To effectively attract candidates, it's crucial to grasp the organization's culture, the employee value proposition, and & Custom Messaging factors that both attract and retain current staff. Recently, the City conducted a comprehensive employee engagement survey, providing valuable insights into why employees enjoy working for Palo Alto. Augmenting this survey, a variety of employees could be interviewed with a focus on hard -to -fill positions to offer more specific marketing insights. Additionally, short videos capturing employee testimonials could be produced. Using the collected data, customized messaging and notifications could be crafted to strengthen departmental appeal and attract a diverse candidate pool. 2.2 Enhance the City's Revamp the current Careers/Job Opening web pages to create a dynamic platform that not only connects to job openings Job/Career Website: but also provides comprehensive details about employee benefits, perks, corporate culture, and more. By showcasing Elevating Candidate compelling content, including language, images, videos, and branding, the website can captivate potential recruits and Experience and Brand Image reinforce Palo Alto's employer brand. ■ Appealing & Friendly Design: Develop a user-friendly jobs/career website with visually appealing design elements such as spacing, colors, and logos. ■ Compelling Content: Share meaningful stories from current staff members highlighting exciting City-wide projects, such as economic development initiatives, innovative projects, and employee wellness programs. These testimonials offer valuable insights into the work environment and opportunities available in Palo Alto. ■ Lead Generation: Implement a contact form to capture leads from website visitors interested in a career with Palo Alto. Utilize these leads to initiate further engagement and recruitment efforts. ■ Interactive Features: Incorporate interactive elements such as videos and virtual tours to provide a firsthand glimpse into life at Palo Alto. These features engage visitors and encourage them to explore job opportunities further. Item 16: Staff Report Pg. 35 1 1 Packet Pg. 250 of 281 2.3 Streamline City Job Listings: lien, iv The City's job listings are accessible via https://www.governmentiobs.com/career he City's Attachment A - Recruitment Simplifying Access and NEOGOV software. While this platform serves as the primary hub for job postings, he site Strategic Plan Information provide information on benefits and other city -related details. However, this setup"preseriis uiiienges, dS ii. requires HR staff to maintain two separate locations for updates and content management. To enhance efficiency and user experience, it is recommended that the City utilize www.governmentjobs.com exclusively for job postings and not post other general information. Candidates can then be directed to the City's Career/Jobs webpage for more comprehensive information. By consolidating resources and streamlining access, both HR staff and candidates will benefit from a more cohesive and user- friendly approach to job listings and information dissemination. 2.4 Craft Compelling Content to The aim is to equip HR with compelling and professional content, tailored for social media, advertising campaigns, and Strengthen Palo Alto's website development, bolstering Palo Alto's employer brand. This content will humanize the brand by sharing stories of Employer Brand actual employees, highlighting personal and professional growth opportunities provided by the City. It should reinforce Palo Alto's employer brand and value proposition while maintaining consistency and recognition across departments. • Tailored Taglines and Ad Copy: Develop taglines and ad copy based on market research to attract new candidates effectively. • Department -Specific Content: Create content tailored to key department's unique offerings and culture to resonate with potential candidates. • Multimedia Assets: Generate graphics, landing pages, emails, banner ads, and social media ads infused with Palo Alto branding and messaging from research findings. • Promotional Videos: Produce short- and long -form promotional videos, including motion graphics and b -roll footage, to be shared across various platforms like YouTube, Facebook, Instagram, and the City's website. • Ongoing Research: Use insights from 1:1 interviews to inform initial messaging and positioning. 2.5 Build Recruitment Landing Adoption of an advanced marketing strategy entails the development of specialized landing pages customized for specific Pages & Deploy CRM for job positions. Grouping similar positions on these pages enables the City to streamline the recruitment process by Active Candidate addressing multiple vacancies simultaneously, thus minimizing the resources needed for individual recruitment efforts. As Engagement these landing pages mature, they have the potential to transform into standalone recruitment websites, mirroring the approach utilized by numerous Police Departments for recruitment and marketing purposes. The landing pages are linked to a robust CRM for candidate communication and tracking. This integration allows for the accurate tracking of lead sources, facilitating the analysis of key metrics such as cost per lead, cost per interview, and cost per hire based on the origin of the leads. The CRM also allows HR and the department to have real-time information regarding interest, applications, and candidate communication. The CRM also uses a text and email -enabled communication system to make it easy for recruiters to connect and communicate with leads and candidates. 2.6 Invest in Targeted Digital Take a proactive approach to recruitment by leveraging targeted advertising on job sites, social media platforms, and Advertising relevant websites frequented by potential candidates. This targeted approach allows employers to tailor their outreach efforts to individuals with specific skills and qualifications, rather than casting a wide net to a generic audience. Moreover, targeted advertising can enhance the organization's brand image by showcasing its core values and employer value proposition to potential recruits. These ads can be tailored based on various factors such as facility similarities, military focus, or diversity initiatives aligned with organizational hiring goals. Launch ad campaigns featuring imagery and messaging derived from research findings. Implement Google Ads across Search, Display, and YouTube platforms to drive traffic through search and marketplace ads. Initiate campaigns on job platforms like Indeed to expand reach and attract relevant candidates. Item 16: Staff Report Pg. 36 1 1 Packet Pg. 251 of 281 2.7 Host Virtual Recruitment Item 16 In conjunction with a robust digital strategy, hosting virtual recruitment events offi mt for Fairs Attachment A - Recruitment candidates, humanizing the City and alleviating questions about specific departureintain Strategic Plan consistency and capitalize on candidate lists generated through targeted advertisin'g. ivioreover iriey sriuuiu include dedicated campaigns to drive registrations and attract attendees who express interest in working for Palo Alto. Additionally, past applicants and candidates from previous recruitments who were not selected can also be considered as potential candidates for other City positions, thereby constituting a pool of individuals already interested in joining the organization. Insights gathered from virtual career fairs can be particularly motivating and may rekindle interest in employment opportunities with Palo Alto. These initiatives can be tailored to address general recruitment needs or targeted towards specific departments as required. General Marketing 2.8 Continue to Optimize Social The City boasts a sizable social media following, with substantial engagement across platforms [City: Facebook-12,000; Media for General Twitter/X-18,700; Instagram 6,600]. While these channels are valuable for some general recruitment marketing, they will Marketing not reach a broader candidate pool on their own. The objective of the City's social media presence for recruitment is to bolster its brand by spotlighting achievements, introducing employees, and showcasing the meaningful work undertaken. • Transition from generic "We're Hiring" posts to a recruitment branding initiative like "Join Team Palo Alto," featuring stories and personal highlights. • Inject more personality and human touch into social media content to spotlight employees and the City's successes. • Continue to support departments in crafting and disseminating posts highlighting program initiatives, achievements, videos, employee profiles, and operational updates. • Continue to use relevant hashtags on job postings to enhance visibility. Hashtags enable web crawlers to identify job postings, ensuring they appear in searches conducted by job seekers. Examples include #Engineer, #PublicWorks, #Transportation. • Refer to Appendix C - Social Media Analysis for additional recommendations to optimize the City's social media platforms. 2.9 Foster Employee Empower Palo Alto staff to become brand ambassadors to help promote and recruit future employees. Ambassadors ■ Social Media Networkers - Provide employees with a Social Media Playbook containing assets, information, and images for effective marketing. Conduct training sessions to enhance their proficiency in platforms like Linkedln and expand their professional networks. Recognize and incentivize employee ambassadors who actively promote the City's website from their posts. ■ Employee Referral Program -- Develop an employee referral bonus program. Provide a cash bonus or vacation day for current employees who help attract new employees. Examples of other agencies with employee referral bonus programs include UC Berkeley, San Mateo County, City of Torrance. 2.10 Continue to Utilize Linkedln Continue to leverage the Linkedln platform, which currently boasts over 7,000 followers on Palo Alto's page, as a recruitment tool for hard -to -fill positions. Enhance the City's presence on Linkedln by focusing on employee stories, new hires, career opportunities, and notable achievements rather than general city updates. Explore Linkedln recruitment products to engage in direct outreach to individuals who match the competency map for the challenging positions. Encourage Palo Alto employees to engage with and share posts to expand the reach of recruitment efforts. Item 16: Staff Report Pg. 37 1 1 Packet Pg. 252 of 281 Rena iv . . . . Attachment A - Recruitment Strategic Plan In Process: ■ Delegated salary parameter decisions for job offers to the Assistant HR Director for expedited approvals, reducing the time from 2-3 weeks to 24-48 hours. ■ A Pre -Requisition Questionnaire was created by MRG to facilitate key questions and logistical issues that can be determined at the front of the recruitment process to reduce time delays. The questionnaire is being rolled out to the recruitment team. ■ IT and HR staff are working together to enhance and expedite the workflow when issuing employee numbers and preparing for onboarding. ■ A Candidate Pulse Engagement Survey is being created to measure and track overall experiences both by candidates and hiring managers. ■ Hiring a part-time HR position to assist with pre -boarding processing, coordination, and paperwork. Process Improvements 3.1 Streamline Recruitment Streamline the recruitment process with a focus on critical path decisions to reduce processing time by anticipating logistical Process: Focus on issues that can be determined ahead of time to reduce delays. Refer to Appendix A for specific recommendations. Begin by Critical Path Actions focusing on Phase 1— Requisition Approval and Phase 2 — Planning & Posting. ■ Hold recruitment strategy meetings with department hiring managers at the start of each recruitment cycle to establish key parameters. Use a recruitment checklist and pre -recruitment questionnaire and equip HRLs and Hiring Managers with as much information upfront to proactively plan and conduct the recruitment process. Determine ahead of time the targeted interview dates, panel members (including SEIU, if applicable), screening processes (phone, panel, or HireVue), candidate salary expectations, and tentative salary placement based on internal equity considerations. Develop a timeline with mutually agreed -upon key dates. ■ Review minimum requirements and request candidates to provide proof of licenses and certifications during the initial interview stages, rather than delaying until the final candidate selection phase. ■ Require all candidates to sign a reference waiver form at the time of their first interview. Dispose of unnecessary forms promptly and proceed immediately with reference checks for final candidates. Encourage hiring managers and departments to initiate reference checks during the final round of interviews to expedite the selection process and start dates. ■ Prepare draft conditional offer letters at the time of the final round of interviews to allow HRLs and HR to effectively collaborate and partner on the process and initiate the final job offer discussion with the selected candidate. For HRLs with a Level 3 certification, allow them to drive the pre -boarding and offer process in conjunction with HR versus handing the baton back to HR at this time. Allows for higher level candidate communication and department relationship building with the final candidate. 3.2 Streamline Phase 7: Use an interdepartmental Strike Team to streamline final preboarding. Refer to Appendix A for more recommendations. Pre -boarding — Final ■ Create an online checklist for workspace readiness with department responsibilities outlined. Candidate to Start Date • Document roles and processes for HR and Information Technology Departments to ensure new employees have a computer, login access, phone, and any other necessary equipment ready to go on Day 1. ■ Document roles and streamline processes for HR and the Public Works Department to ensure new employees' identification badges/access key cards are ready on the employees' start dates. ■ Fully utilize NEOGOV more effectively by full deployment of online OnBoard forms with more consistent follow-up. ■ Ensure prompt setup of direct deposit for new employees. Item 16: Staff Report Pg. 38 1 1 Packet Pg. 253 of 281 3.3 Candidate Engagement Item 16 Candidate Engagement Surveys aim to uncover reasons why potential candidates witH Inent surveys Surveys Attachment A - Recruitment are administered before candidates exit the application process to capture their expe surveys Strategic Plan typically assess process satisfaction, timing, communication, and support. They also gauge etention metrics like the quality of hiring steps, communication, and clarity. In the past, HR conducted these surveys regularly but hasn't been able to continue due to workload and staffing constraints. 3.4 Upgrade Exit Interview Upgrade the City's exit interview process featuring confidential surveys and one-on-one phone or in -person interviews. Share Process key themes and insights with departments quarterly to enhance awareness and dedication to process enhancement initiatives. Compile an annual update with citywide and department -level information detailing reasons for employee departures. 3.5 Explore MOU Review SEIU MOU procedural requirements for recruitments and explore modifications at the bargaining table and updates for Modifications today's recruitment environment. • Requires 10 -day posting of positions. Options to explore include: (1) consider identifying positions that may be posted concurrently; (2) consider modifying language in posting for 5 days internally only prior to advertising externally when there are strong internal candidates who can apply and compete for the position; and (3) explore direct appointment language for certain positions. • Requires interview of internal candidates first, if three or more candidates meet the minimal qualifications. The City is unable to begin the review of the external candidates until the internal interviews have been completed. Explore ways to modify or eliminate this practice. • Requires represented employee to sit on interview panel if panel format is being used. Consider establishing a list of panel members who will commit to serving and being available for various recruitments throughout the year. • Requires the City to conduct recruitments for flexibly staffed and underfilled positions, despite incumbents in the role for a period of time. Consider negotiating language to waive requirements to conduct recruitments for flexibly staffed and underfilled positions to fully encourage and foster internal promotions. 3.6 Continually Measure, Embrace a "Lean Startup" mindset for marketing campaigns and recruitment efforts, focusing on rapid adaptation based on Evaluate, real-time feedback and data insights. Utilize dashboards and metrics to guide decision -making and continuously refine the Communicate, and recruitment strategy. Effective project management ensures timely execution of the recruitment plan and proactive problem - Improve solving. Additionally, foster stronger collaboration between HR recruitment staff and departments by enhancing communication and training: • Hold regular check -in meetings and monthly report sessions to facilitate communication and accountability. Conduct quarterly and annual meetings with departments to review recruitment progress and identify areas for improvement. • Establish service -level agreements with departments to streamline communication and deliverables, reducing turnaround times in the recruitment process. • Develop recruitment training programs for first-time supervisors/managers and maintain a list of panel interview members per department to ensure adequate training and availability. Item 16: Staff Report Pg. 39 Packet Pg. 254 of 281 Data & Metrics Item 16 Attachment A - Recruitment Invest in software integration and better data management/utilization for data-enabl strategic Plan 3.7 Invest in Data Integration, Utilization ■ Build an interim real-time Recruitment Dashboard with key data and metrics to monitor recruitment processing and & Dashboards improve internal communication and coordination. Identify and establish various Phases of Recruitments for ease in communicating the status with departments. Provide information access to city departments that assist with recruitment and new employee processing including Communications, Finance, Public Works, Information Technology, etc. ■ Bring NEOGOV training in-house for HR recruiters and HRLs and increase software learning for full competency. Review the NEOGOV management module and gain internal expertise for custom management reporting as needed. ■ Invest in the proper integration of SAP and NEOGOV to avoid redundant processes, cumbersome data collection, and manual maintenance of HR reports. ■ Explore an interim web -based Human Resource Information System (HRIS) to begin foundational employee/position controls and other management information. [A human resources information system (HRIS) helps companies manage and automate core HR processes. These HR software systems support benefits administration, time and attendance, payroll, and other workflows, as well as the storage of employee data, such as personal, demographic, and compensation information.] 3.8 Build Recruitment Build data and metrics to track recruitment progress. Once base data is captured, set goals and time frames for each metric Metrics as performance goals. Target future vacancy rate of 8-10% for all full-time budgeted positions in the organization. ■ Quantitative Metrics ■ Vacancy Rate — overall and by department. Resignations by month by department including reasons for departure. ■ Application Completion Rate ■ Applications per Job Posting ■ Time to Hire ■ Time to Fill ■ Ad Cost to Hire ■ Source of Hire ■ Offer Acceptance Rate ■ First -Year Attrition Rate ■ Recruitment Phases ■ Qualitative Metrics ■ Candidate Experience — Survey candidates across several metrics, such as responsiveness, interview competence, communication skills, and courtesy. ■ Hiring Manager Experience — Survey hiring managers on efficiency, responsiveness, and overall quality of the hiring process. 3.9 Workforce Analysis Build data and systems to create an annual Workforce Analysis Report for reporting to departments and the City Council. It Report will take several years before HR is positioned to prepare this document as HR builds capacity, systems, and data. See the example from San Mateo County [Link]. Item 16: Staff Report Pg. 40 1 1 Packet Pg. 255 of 281 Item 16 AttachmentA- - Recruitment Strategic Plan Pipeline Initiatives 4.1 Review Job Review job requirements to maximize inclusivity and attract diverse candidates by considering equivalent combinations of Requirements & education and experience. Reframe previous public sector experience requirements as preferred or desirable qualifications for Broaden the certain positions. Introduce trainee -level roles to facilitate progression towards journey -level positions. Broaden applicant pools Candidate Pool through proactive recruitment efforts to eliminate unnecessary degree prerequisites, evaluate minimum qualifications in general, shift to a focus on skills, welcome candidates with private sector experience, and demonstrate flexibility in considering resume gaps. 4.2 Build Additional The City has utilized apprenticeship programs in some occupations historically (Fire, Police). More recently, Utilities successfully Apprenticeship deployed a Utility Systems Operator Trainee position which has helped to reduce vacancies in this classification. Partner with Programs local junior colleges, colleges, and universities to establish and develop apprenticeship programs. Explore the creation of a summer apprenticeship program in partnership with Foothill Community College. 4.3 Continue Internship & Continue and expand internship opportunities for high school and undergraduate students, as well as fellowships for graduate - Fellowship Programs level students, to nurture the employee pipeline and offer students valuable professional exposure. Leveraging successful programs like those with the Art Center and Children's Theatre, the City can provide students with opportunities to enhance their skills, expand their professional networks, and contribute to the community. Although the traditional summer internship program has been dormant due to the pandemic, it should be restarted once recruitments are stabilized or by hiring a contractor to oversee the program if started earlier. 4.4 Build Local Outreach Develop additional Community Technical Education (CTE) pathway programs in collaboration with the Palo Alto Unified School Programs District and East Palo Unified School District that begin to expose students and prepare them for careers within the City. Support CTE pathways with a variety of volunteer and paid internships, explorer programs, and other opportunities to develop potential future employees of the City. 4.5 Implement "Stay Focus on retaining current employees to minimize vacancies by utilizing "stay interviews". A stay interview is a proactive Interviews" approach used by organizations to engage with current employees and understand their job satisfaction, motivations, and reasons for staying with the organization. Unlike exit interviews, which occur when an employee is leaving the organization, stay interviews are conducted while the employee is still employed. During a stay interview, a manager or HR representative meets with the employee to discuss various aspects of their job, including their current role, career aspirations, work environment, challenges, and suggestions for improvement. The purpose is to gather feedback directly from the employee about what they value in their job, what keeps them engaged, and any concerns or areas where they may need support. Stay interviews are valuable because they provide insight into the factors that contribute to employee retention and job satisfaction. By actively listening to employees and addressing their concerns or suggestions, organizations can create a positive work environment, improve employee morale, and reduce turnover. Additionally, stay interviews can help identify opportunities for career development and advancement, aligning employees' goals with organizational objectives. Item 16: Staff Report Pg. 41 1 1 Packet Pg. 256 of 281 SECTION 5- IMPLEMENTATION Item 16 Attachment A - Recruitment Strategic Plan This section outlines key thoughts and recommendations on how and what Palo Alto will need to do to implement this Recruitment Strategic Plan. Financial Investments Financial investments will be required to execute a heightened recruitment strategy with targeted digital advertising and candidate sourcing. Specifically, areas of investment are listed below. A precise budget and investment package will need to be researched. Advertising Budget: Allocating a budget for paid advertising on digital platforms is essential for reaching a wider audience and maximizing the visibility of job advertisements. This could include spending on pay -per -click (PPC) advertising, sponsored posts on social media, or premium listings on job boards. Data Dashboards & Integration: Utilizing data and analytics tools is crucial for tracking the performance of recruitment campaigns, analyzing candidate demographics and behavior, and making data -driven decisions to optimize hiring efforts. Consulting assistance will be needed to create better integration with Palo Alto's software systems and to create a comprehensive and easy -to -view Recruitment Dashboard/CRM. Additional consulting or staffing resources will be needed to build the data systems needed for active candidate managing and management reports. Content Creation: Developing high -quality, engaging content for job advertisements, social media posts, and other recruitment materials may involve expenses related to hiring copywriters, graphic designers, or video producers. Training and Development: Providing training and development opportunities for recruitment teams to enhance their skills and stay updated with industry trends may require financial investment in workshops, seminars, online courses, or certifications. Consulting Services: The City may choose to enlist the help of external consultants or recruitment agencies to assist with targeted digital advertising campaigns, candidate sourcing and communication efforts, or employer branding initiatives. Key Roles of the City Council The leadership of the City Council plays a pivotal role in the success of the Recruitment Strategic Plan. Initially, MRG identifies three crucial roles for the City Council: 1. Prioritize Recruiting: The City Council recognizes that fulfilling its priorities for the community relies on having a well -staffed organization with skilled employees. Continued support and policy direction for the City's recruitment program and strategy is key. 2. Providing Financial Support and Resources: As outlined above, the Strategic Plan will necessitate both one-time and ongoing financial resources for staffing, tools, technology, and equipment. Without secured financial support and investment, the Strategic Plan's success will be compromised. MRG recommends that the City Manager present an initial resource request followed by a recommendation for a more comprehensive multi -year budget investment. 3. Monitoring Compensation & Benefits: The City has implemented strategic improvements in base pay, benefits, and work schedules. Continuous monitoring of compensation and benefits is essential for effective recruitment and retention efforts. Item 16: Staff Report Pg. 42 1 1 Packet Pg. 257 of 281 Item 16 The Need to Move Quickly Attachment A - Recruitment While full implementation of the Strategic Plan will take some time, immediate action and resolve are required. Strategic Plan ■ Executive Leadership & Project Champion — Committed executive leadership is required to ensure organizational change occurs and the Strategic Plan is implemented. The City Manager's Office has the vision and organizational leadership acumen to ensure this work is driven forward. ■ Seasoned Project Manager— The Recruitment Strategic Plan will require a seasoned manager to lead and drive these efforts forward with the full support of the executive champion. This should be Assistant HR Director at this time and eventually, the Recruitment Division Manager after that position is hired. ■ 1X& Ongoing Financial Resources— New investments in the organization for staff, consultants, technology, equipment, supplies, etc. are all required to implement the Strategic Plan. The funding needs should be identified and set aside for the upcoming years to ensure this organizational effort has the resources to complete its projected outcomes. ■ Strike Teams — Implementing the transformative steps outlined in this report can greatly enhance hiring effectiveness, but it's a challenging task for any organization. To overcome these challenges and expedite the process of closing talent gaps, Strike Teams can be established. These specialized teams are tasked with orchestrating and accelerating the implementation of these steps to drive rapid improvements in hiring practices. For success, a Strike Team needs the following: ■ Cross -Functional Team of Stakeholders: A diverse team of stakeholders from HR, business, and subject matter experts work together to expedite the hiring process by minimizing delays and ensuring alignment. ■ Commitment to Interactive Improvements: An iterative working model supported by agile methods enables rapid identification of hiring bottlenecks, intervention deployment, and data -informed adjustments for continuous improvement. ■ Prioritized Action Plan — There are thirty-one (31) individual recommendations in the Strategic Plan. While a complete implementation of this Strategic Plan might take a few years, it is critical to move forward with urgency. Below are the prioritized items to begin the in first 90 days. 90 -Day Implementation Plan Item 16: Staff Report Pg. 43 Packet Pg. 258 of 281 ■ Item 16 Attachment A - Recruitment Strategic Plan SECTION 6-- APPENDICES Item 16: Staff Report Pg. 44 1 Packet Pg. 259 of 281 Item 16 Attachment A - Recruitment Strategic Plan APPENDIX A — Detailed Recruitment Process Recommendations A recruitment process includes all the steps that move the hiring process from job description to a new employee starting the job — including the initial authority to begin a recruitment, development of the job posting, outreach and marketing, application screening, interviews and assessments, background checks, job offer, and pre -boarding activities --all of the elements crucial to making the right hire. Addressing areas for improvement can significantly enhance the recruitment process, resulting in better outcomes for both candidates and the organization. Below are the recruitment phases found in Palo Alto's recruitment program. GATE PHASE PHASE NAME DESCRIPTION Phase A and B below aren't differentiated currently in Palo Alto's system or discussions, but additional clarity and tracking are needed here. Recommend new language and new phases to be created for the recruitments that have not been initiated. Phase A Department Hold Vacant positions that departments are not ready to initiate recruitments for at this time. A department "hold" can occur when using interim staffing options, reorganizing, modifying the work, or generating salary savings. Phase B On Deck The department is ready to proceed; waiting for a recruiter to launch the recruitment. Phase 1 Requisition Requisition approval process. Confirmation by OMB, department, and HR that the position is approved for hire. Approval GATE 1 Phase 2 Planning & Posting From approval of the position for hiring (requisition) to posting of the position. This phase involves identifying hiring needs, defining job requirements, agreeing on outreach efforts, anticipating potential salary and benefits issues, and developing a well-defined recruitment strategy. Clear candidate profiles & marketing are created. Phase 3 Marketing, Open application time including outreach and marketing. Recruiters market to potential candidates using GATE 2 Sourcing & various methods such as job boards, advertising, trade and professional organizations, social media, networking, Outreach and employee referrals. Phase 4 Screening / HR -internal or HRL review for applications for minimum qualifications and then department review for top Application candidates (HRL or management). Recruiters review resumes, applications, and other candidate materials to Processing assess qualifications and suitability for the position. Phone screenings or initial interviews can be conducted to GATE 3 evaluate candidates' skills and fit for the role. Phase 5 Interview, Testing Interview, testing, and vetting of candidates. In the selection phase, recruiters and hiring managers conduct & Selection interviews and assessments to evaluate candidates' qualifications, experience, and cultural fit. A final candidate is identified. GATE 4 Phase 6 Finalist to Offer Time from selection of final candidate to offer letter. Once a candidate is selected, reference checking is Letter completed. A verbal offer is extended. Negotiations may occur regarding salary, benefits, start date, and other terms of employment. GATE 5 Phase 7 Pre -boarding Activities to be ready for new employee's start date. Pre -boarding ensures a seamless transition for new employees by ensuring that all necessary tools, technology, pertinent documents, and resources are prepared and accessible from day one. This can include setting up workstations, providing access to software systems and user IDs, and ensuring that necessary equipment is ready for use. Item 16: Staff Report Pg. 45 Packet Pg. 260 of 281 Item 16 GATE 1— Phase 1 (Requisition Approval) + Phase 2 (Planning and Posting of the Position) Attachment A - Recruitment Strategic Plan Upon notification of a pending vacancy or approval of a new budget/approved position, Departments initiate the process on via NEOGOV, the applicant tracking system, with the relevant manager and department head approvals. The requisition serves to obtain authorization to fill the vacancy and includes essential information such as Job Title, Top Annual Salary, and Position Number. The Office of Management and Budget (OMB) reviews all requisitions for approval, ensuring alignment with City Council -approved levels in the annual budget regarding position title classification, bargaining group, and budgetary allocation. Once approved, the requisition is forwarded to HR for classification review based on the scope of work, salary range, bargaining group, and confirmation of any existing re-employment lists. HR prioritizes requisition reviews based on departmental needs. Upon final approval, the requisition is assigned to a recruiter who collaborates with the Hiring Manager and the HRL to develop a customized recruitment plan for each vacancy. This detailed plan establishes mutual expectations regarding job announcement language, posting duration, candidate evaluation procedures, subject matter experts, panel members, advertisement strategies, and stakeholders' involvement at each step of the recruitment process. Areas of Improvement: ■ Recommend a focused Strike Team review Phase 1 Requisition Approval to find ways to reduce and streamline this process thoroughly. For example, consider increasing the frequency of when requisitions are approved by OMB to effectively prioritize recruitments by department. Currently, OMB batches requisitions and approves them on one day per week. Also, explore how OMB can preapprove new positions that are created as part of a mid -year or annual budget process versus reviewing each position individually. ■ Currently, the work of recruitment processing is done sequentially and would benefit from more pre -planning and critical path contemplation. For example, setting dates for interviews and selecting your panelists when you launch the recruitment reduces time at the interview stage. • Using a recruitment checklist and pre -recruitment questionnaire, equip HRLs and Hiring Managers with as much information upfront to proactively plan and conduct the recruitment process. Discuss and resolve anticipated critical issues by providing advance notification to Hiring Managers and include higher - level management if needed to move issues along. MRG created a pre -recruitment questionnaire which is being deployed now to improve this process. • Provide training for Hiring Managers and supervisors to clarify and explain their specific roles and responsibilities in talent management. Identify specific expectations for each stage of the recruitment process, clarify roles and responsibilities, and ensure alignment and accountability among team members. Establishing a recruitment calendar and cheat sheets to help keep the team organized and on track, minimizing delays and oversights. • Establish a large pool of City-wide panel interview experts, plus SEIU representatives, to ensure a diverse panel that is available and accessible throughout the year. Conduct annual training for panel interview experts on Unconscious Bias Training, Principles of Recruitment and Selection, etc. • Develop an effective communication system to keep public information staff informed about upcoming openings to assist with posting and marketing on the City's social media site. In the future, additional capacity and staff need to be added to the HR team to absorb these duties. GATE 2 — Phase 3 (Marketing, Sourcing & Outreach) Typically, a job posting remains open for 2-4 weeks, accompanied by targeted marketing and outreach efforts. During this period, active communication with candidates is ongoing, including responding to inquiries. It's also an opportunity for proactive candidate sourcing, actively seeking out potential candidates who may not be actively job hunting but could be interested in a new opportunity. Areas of Improvement: ■ Actively sourcing candidates through various channels and advertising, such as social media and professional networks, expand the candidate pool and increase the likelihood of finding the right fit for open positions. • Update promotional marketing information on the City's career pages to better tell Palo Alto's story of being an Employer of Choice. • Advertise with anticipated recruitment timelines including dates to review applications, interview dates, and expected appointment date. Item 16: Staff Report Pg. 46 1 1 Packet Pg. 261 of 281 Item 16 ■ Explore a referral bonus program for general employees to incentivize current employees to actively participate id bpping into Attachment A - Recruitment their networks to identify potential candidates. This can be a financial bonus or day(s) off. Strategic Plan ■ Utilize Linkedln for posting professional and management positions and searching/targeting potential candidates. ■ Create brief videos that highlight Palo Alto's offerings to attract and retain top talent by showcasing the value of working for Palo Alto in general and for specific departments such as utilities, public works, and public safety. (The Library Services Department is creating a video currently.) ■ Develop standard operating procedures (SOPS) for using HireVue to ensure consistency and efficiency in conducting interviews, improving the candidate experience, and streamlining the selection process. GATE 3 — Phase 4 (Screening / Application Processing) + Phase 5 (Interview, Testing & Selection) During the screening and application process, Human Resources and/or HRLs assesses the candidate pool and screens for minimum qualifications (MQs). Qualified candidates are then forwarded to the department for review by subject matter experts. These experts evaluate candidates, rate their suitability, add notes to their profiles, and determine who progresses to the next stage. The selection process may involve practical skills assessments, phone screenings, or panel interviews conducted through platforms like HireVue, Teams, or in -person meetings. The recruiter collaborates with the Hiring Manager to decide on the selection process and develop interview questions. Additionally, the recruiter facilitates and coordinates all selection process steps and provides candidates with recruitment updates. Areas of Improvement: ■ Further engage with Hiring Managers to fully partner and collaborate after initial screening and to expedite the involvement of Subject Matter Experts (SME) in the process. ■ At the interview stage, have all final candidates sign the release form for reference checks. Release forms that aren't needed can be destroyed. Alternatively, initiate a preliminary reference check for top finalists during the interview process as part of information gathering. ■ Whenever possible, prepare draft conditional offers for initial feedback from the final candidate. GATE 4 — Phase 6 (Finalist to Offer Letter) At the conclusion of the recruitment, testing, and selection process, the top candidate is identified. The Hiring Manager and Department Director collaborate on a salary recommendation, which is then reviewed by HR. For salary offers above the mid -range, written justification and approval from the HR Director are required. Offers within 7% of the top of the range necessitate approval from the City Manager (recently delegated to the Assistant HR Director). Once proper authorization is obtained, HR extends a conditional e -offer (Onboard) to the candidate, outlining pre -employment requirements such as medical, education, employment, and criminal background checks. The conditional offer letter includes an anticipated start date and salary offer. The candidate must accept the offer terms and complete all pre- employment requirements before receiving the final offer letter, which confirms the terms of employment and start date. Areas of Improvement: ■ Reduce the time between the informal job offer and the formal job letter which was taking 2-3 weeks, addressing a major source of frustration for departments and final candidates. Recent improvements, including granting authority to the Assistant HR Director to approve compensation parameters without regular review by the City Manager or HR Director, have led to significant progress. With this change, MRG estimates a reduction to just 1-2 days. ■ Provide advance notification to IT (weekly report) on upcoming new hires to facilitate planning of onboarding equipment and other IT needs. HR and IT will properly coordinate to expedite the issuance of employee ID numbers. (This communication has typically waited for Gate 5 which is too late in the process.) ■ Whenever possible, prepare draft conditional offers for initial feedback from the final candidate. Item 16: Staff Report Pg. 47 1 1 Packet Pg. 262 of 281 Item 16 GATE 5 — Phase 7 (Pre -boarding) Attachment A - Recruitment Strategic Plan After the conditional offer is accepted and the candidate fulfills all pre -employment requirements, a final offer, onboarding lildil, dliUdilW ir pUF al are generated through Onboard. The new hire then has a few days to complete all onboarding forms via NEOGOV and subsequently meets with the recruiter for 1-9 verification and review of all new hire documents. A Personnel Action Form (PAF) is initiated, with the recruiter inputting relevant information for the future employee. To ensure completeness, Human Resources employs a New Hire Checklist, which is attached along with all supporting documentation including the requisition form, application, and new hire packet. The PAF undergoes review and sign -off by the Hiring Manager, Department Director, and HR Director. If the hire is at the Director level, the City Manager's approval is also required. Once all necessary information is gathered and the PAF is approved by appropriate personnel, it is forwarded to another HR team (Human Resource Information System) for entry into SAP. Before the payroll entry deadline, the information is carefully reviewed to ensure accurate application of pay rates and proper implementation of any changes. Additionally, a confirmation message is sent to the Hiring Manager, notifying them of the successful onboarding of the new hire. The recruiter also provides IT links for the department to initiate equipment access requests for the new hire. Areas of Improvement: ■ Recommend the use of a Strike Team to review the Pre -boarding process and find ways to reduce and streamline this process. ■ Utilize NEOGOV more effectively through the full deployment of online OnBoard forms with more consistent follow-up. ■ Ensure prompt setup of direct deposit. Departments communicated that direct deposit for new employees can lag one pay period which creates more work for Finance. ■ Provide necessary tools and resources, such as computers, keys/access cards, and ID badges, immediately upon starting, enhances efficiency and productivity. Numerous examples of employees not having these resources until several days to a week after their arrival. ■ As staffing allows, HR should explore if having a single point person to oversee internal preboarding processes can facilitate communication and expedite the resolution of issues Item 16: Staff Report Pg. 48 1 Packet Pg. 263 of 281 Item 16 Attachment A - Recruitment Strategic Plan APPENDIX B - MARKETING STRATEGY SUMMARY & BEST PRACTICES BUILD CONTENT, BRANDING & MESSAGING RESEARCH & MARKETING CONTENT DEVELOPMENT • Understand the employee value proposition and what attracts and keeps current employees in their careers. Create and survey existing employees. Develop branding and outreach based on survey themes. • Custom messaging and notifications should be developed to reinforce department brands and built to attract a diverse candidate pool. • Concepts and specific analysis of DEI data will be leveraged to create detailed campaigns. FOCUS GROUPS • Focus groups to test, verify, and build acceptance of the messaging and values identified in the survey research. • Mined messages and guidelines will be used in the creative process to guide design and ad language. • After the focus groups are conducted, there should be meetings with key leadership to discuss findings and finalize messaging and overall brand. CREATE & DESIGN DIGITAL ASSETS • Provide digital assets/designs for advertisements, banner ads, social media ads, and various other uses. PROMOTIONAL VIDEO & PHOTOGRAPHY • 60 Second, 30 Second, and four 15 -second videos promoting careers. • Photography will be leveraged across all media channels, video will be added to landing pages, and YouTube promotional campaigns will also be utilized. ACTIVATE CANDIDATE COMMUNICATION + UTILIZE TARGETED ADVERTISING CANDIDATE COMMUNICATION CAMPAIGN • Create email and SMS follow-up campaigns for candidate leads. • These follow-up campaigns should be dependent on classification as well as current candidate status in the application process. • In addition, the communication campaigns may also include messaging from individual departments based on their hiring processes. DIGITAL ADVERTISING CAMPAIGN • Facebook/ Instagram Ad Management -- Manage Facebook and Instagram campaigns including reporting. • Google Paid Ads Management -- Manage Google paid ads including YouTube, Google Marketplace, and Google Search. • Indeed Paid Ads Management -- Connect Indeed ads to landing pages similar to Google and Facebook. • Advertising Placements -- Direct spend payable to Google, Hulu, Facebook/Instagram, YouTube, and other vendor sources. IMPLEMENTATION AND MANAGEMENT OF CAMPAIGN • Implement and manage the proposed campaign. • Should include weekly strategy calls, overall vendor management, and metrics tracking leveraging digital dashboards. VIRTUAL RECRUITMENT EVENTS • Virtual recruitment events can humanize the City and provide a connection point to the organization that lowers the fears about working in a specific department. • Build consistency and leverage the candidate lists that are being generated through the targeted advertising as well as have a dedicated campaign focused on pushing registrations and attendees who express an interest in working for Palo Alto. Item 16: Staff Report Pg. 49 I I Packet Pg. 264 of 281 Item 16 Attachment A - Recruitment Strategic Plan APPENDIX C Social Media SWOT Review SWOT (Strengths, Weaknesses, Opportunities, Threats) Click the LINK to see full analysis UTILITIES SOCIAL FACEBOOK TWITTER (X) INSTAGRAM 1,300+ 5,057 595 MEDIA STRENGTHS WEAKNESSES OPPORTUNITIES THREATS ■ Overall, the social strategy Palo • Many posts/graphics are reused and • Leverage the 'rule of thirds' - • Posting the same content at the same Alto Utilities has taken appears to reshared; sometimes back-to-back. meaning rotate out content that is times every day could result in a lack of be fairly successful. • Instagram could use the most a mix of promotional, educational, engagement and a reduction in followers. ■ Followership is moderate across improvement when it comes to and interactive/cultural topics. • Low engagement across platforms. the three platforms. sizing of graphics, types of content • Incorporate more diversity into the • Organic posts are not being seen by used, profile photo, organization content topics and content types. followers in this "pay -to -play" description, links, etc. environment. GENERAL CITY SOCIAL FACEBOOK TWITTER(X) INSTAGRAM 12,000+ 18,700+ 6,600+ MEDIA STRENGTHS WEAKNESSES OPPORTUNITIES THREATS ■ Overall, the social strategy the City • Weaknesses include the time -of -day • Incorporate additional content • Low engagement across platforms could of Palo Alto has taken appears to content is posted and the frequency, types (i.e. video, motion graphics, be due to: how often content is posted, be fairly successful. sizing of content for the platforms, infographics, stories/reels, featured content is the same across platforms, ■ Followership is pretty high across length of copy, lack of hashtags, and posts, carousels, collages, etc.). content is repeated, copy length is too the three platforms. content diversity. long ■ The pages need more mix of content • Not enough human element including topics and types. Content is the employee stories and accomplishments. same most weeks. • Organic posts are not being seen by followers in this "pay -to -play" environment. Item 16: Staff Report Pg. 50 1I 1 Packet Pg. 265 of 281 High -Level Recommendations: Leverage the 'rule of thirds' - meaning rotate out content that is a mix of promotional, educational, and i • Incorporate additional content types (i.e. video, motion graphics, infographics, stories/reels, live videos, featured posts, a collages, etc.). • Incorporate additional content topics, such as: , documents, carousels, • Incorporate other types of reels/stories into Instagram that incorporate people and social media trends, vs just the Uplift Local and Emergency Alert System, and house them as featured or pinned content on the page. • Leverage a content calendar (i.e. Excel, Trello, etc.) to help plan and schedule out posts across the three platforms. You can also plan what kind of content it will be (i.e. graphic, infographic, video, collage, etc.). • Keep up with social media trends to share fun, relatable content with audiences. • Reshare posts from (and about) Palo Alto agency posts with @ and U. • Cross -promote each of the platforms on the other channels to increase followership and incorporate advertising (Also, link to the other platforms on Facebook). • Consider the day of the week, time of day, and frequency of posting across all three platforms (Reduce the # of posts on Facebook to about 8 posts per week). • Keep copy length short (use bitly for long links). • Post manually to Instagram vs from Facebook to ensure content is sized appropriately for the platform. • Reduce the number of links used on Linktree to 5-8 links vs 30+. • Use a design tool like Canva to quickly create graphics, motion graphics, infographics, and videos to use across social platforms. • Create content that keeps the user on the platform vs always directing to the website or link in the bio to learn more. • When applicable, share posts in various languages, depending on the demographics of Palo Alto (i.e. English, Spanish, Chinese, etc). • Leverage social media advertising to boost followership and promote open jobs at the organization. • Leverage brand ambassadors to help boost followership, post engagement, traffic to platforms, and help promote open positions at the organization • Update bios for consistency and update cover photos to include a human element. • Leverage the City's website, email signatures, emails, printed materials, ads, and additional social platforms to drive users to the Palo Alto social platforms. Item 16: Staff Report Pg. 51 Packet Pg. 266 of 281 Item 16 Attachment A - Recruitment Strategic Plan APPENDIX D Secret Shopper Analysis Click the LINK to see full analysis SUMMARY All Star Talents submitted an applicant in two recruitments (Equipment Maintenance Serviceperson in Public Works and Water Quality Plant Operator 1/Operator Trainee in Utilities) to gain an understanding of the experience of a candidate interfacing with the recruitment process. This portion of the analysis is through the first receipt of the application. Positive Aspects of the Application Process: ■ Easy job discovery on the website. ■ Seamless website navigation. ■ Clear and accessible HR contact information. ■ Transparent salary information presented prominently at the top. ■ Well-defined expectations for the job outlined. ■ Receipt of a well -structured confirmation email. ■ Appreciation for the immediate follow-up in the application process. Recommendations for Improvement: ■ Provide more active and regular communication with candidates to improve the candidate experience. ■ Enhance the prominence of the benefits section on the website. ■ Include links in the job posting for additional information and explanations. ■ Provide further clarification on items that require more explanation, such as work schedule and PERS retirement. ■ Add specific guidance for out-of-state applicants or those who need to travel for the position. ■ Ensure consistent placement of contact information on every page for easy access to inquiries. ■ Integrate a more detailed timeline of the hiring process for applicants' better understanding. Item 16: Staff Report Pg. 52 Packet Pg. 267 of 281 Item 16 Attachment A - Recruitment Strategic Plan APPENDIX E — Consultant Firms / Team Information MRG MRG is an experienced, full -service consulting firm dedicated to assisting client agencies in attaining their strategic goals. MRG was founded in 2009 by highly skilled and broadly experienced professionals. MRG has a team of professionals who work to address challenges for both public and private sector clients. Our consultants have extensive experience in all aspects of Organizational Assessment & Development, Human Resources, including staffing and effectiveness analyses. The MRG team is experienced in working with elected officials, agency executives, managers, and staff. MRG helps agencies rethink historic practices and delivers transformational solutions to leadership, governance, human resources, financial management, and other complex organizational needs and issues. ALL-STAR TALENT All -Star Talent is an experienced consulting firm that leverages marketing channels for recruiting in the public sector. All -Star Talent is ALL—STAR the premier talent marketing and recruiting firm for the public sector with a specialty in public safety. All Star Talent delivers the R911.�� T A L E N T following c )nsulting expertise: ■ Recruitment and Retention Consultant • DEI Focused Solutions • Dashboard Analytics ■ Candidate Tracking System ■ Social Media & Digital Marketing • Video & Photography ■ Virtual Recruitment Events CONSULTANT TEAM MARY EGAN Chief Executive Officer MRG ■ Over 30 years ■ Executive Coaching, Workplace Investigation, & Crisis Navigation ■ Delivering truth to governing boards/leaders to solve complex problems CATHY CAPRIOLA Project Manager MRG ■ 30 years — local government ■ Retired City Manager ■ Organization Development, Leadership, Team Coaching ■ Developer of people & organizations to the next tier PATTY FRANCISCO Consultant ►LAWIR ■ 30 years public sector HR ■ Ph.D. Organizational Leadership ■ Problem solver & driver of HR solutions JASON LITCHNEY Co -Founder All Star Talent ■ 20 years of marketing, PR, & employer branding ■ Thought leader on public sector employer branding ■ Help public agencies compete and win the talent game PAM HONG Director of Operations All Star Talent ■ Research and data analytics expert ■ Creator of recruitment & retention products Item 16: Staff Report Pg. 53 I I Packet Pg. 268 of 281 Item 17 Item 17 Staff Report City Council Staff Report From: City Manager CITY O F Report Type: INFORMATION REPORTS PALO Lead Department: Utilities ALTO Meeting Date: May 6, 2024 Staff Report: 2403-2715 TITLE City of Palo Alto Utilities Residential Electric and Water Utility Customer Survey Results; CEQA status: not a project. RECOMMENDATION This report is for informational purposes only and no action is required by the Palo Alto City Council. EXECUTIVE SUMMARY The City of Palo Alto Utilities is a member of the California Municipal Utilities Association (CMUA) and frequently participates in surveys of utilities customers to gauge perspectives and satisfaction with how utilities operate statewide and at the local level. In fall 2023, CMUA contracted with consultant, GreatBlue Research, Inc. (GreatBlue), to survey customers of investor -owned and municipal utilities to provide CMUA members with a benchmark comparison of results year over year as it relates to topics including utility rates, utility service quality and reliability, communications, programs, and customer service. The City of Palo Alto Utilities (CPAU) also opted -in for GreatBlue to perform an "oversample" of Palo Alto residents using the same questions as were provided in the statewide survey but also to dive deeper into Palo Alto -specific issues and interests such as City Council priorities and City policies focused on environmental sustainability and programs. These survey results were presented to the City of Palo Alto Utilities Advisory Commission on February 7, 2024 (Staff Report 2401-25071). BACKGROUND Statewide residential electric and water utility customer surveys were conducted by GreatBlue in September 2023. GreatBlue received responses from a total of 1,200 utility customers from each statewide survey or 2,400 unique responses from customers. For the Palo Alto oversample, 1 Staff Report 2401-2507 https://www.cityofpaloalto.org/files/assets/public/v/2/agendas-minutes- reports/agendas-minutes/utilities-advisory-commission/archived-agenda-and-minutes/agendas-and-minutes- 2024/02-feb-2024/02-07-2024-item-3. pdf Item 17: Staff Report Pg. 1 Packet Pg. 269 of 281 Item 17 Item 17 Staff Report GreatBlue received responses from approximately 400 residents for each of the electric and water surveys in October 2023. Electric and water utility customers were surveyed individually and were not contacted more than once for both the electric and water surveys. GreatBlue collected data from a statistically significant, statewide random sampling of the targeted customer base. The consultant worked closely with all CMUA participants, including the City of Palo Alto, to develop and refine each survey instrument to ensure all topics of interest were addressed and to accomplish year -over -year benchmark comparisons. The specific goals, objectives, and areas of investigation were agreed to and finalized prior to survey implementation. Survey data will be used to help utilities track statewide performance metrics, gauge interest in future programs and services, assess satisfaction locally, regionally, and statewide, and compare progress over time. Ultimately these research studies will provide CMUA member utilities, including CPAU, with actionable insights and recommendations that can be used to make decisions and better operate their organizations. ANALYSIS Electric Customer Survey Results CPAU received significantly higher ratings than northern California utilities and the State of California as a whole when comparing responses between the statewide and Palo Alto oversample results. CPAU customers provided an average positive score of 70.9 percent (compared to 65.5 percent nationwide) based on a series of organizational characteristics, including providing consistent and reliable service to customers, being committed to green, renewable, or carbon neutral energy, and restoring power in a reasonable amount of time after an outage. This rating is higher than averages provided by municipal customers statewide of 62.8 percent. The Net Positive Score (NP+S) for CPAU was 82.1 percent, which is slightly higher than the national average. The net positive score is a different metric than net promoter score, in which NP+S measures advocate, loyal, satisfied and less than satisfied customers, whereas the net promoter score, or NPS, is a metric to measure likelihood to recommend a company, product, or organization, to other consumers. The CPAU NP+S score is consistent with that of customers in northern California and the State of California as a whole. When asked how frequently CPAU meets their expectations, nearly 80 percent, or four -fifths, of customers reported their expectations are met "all" or "most of the time," which is significantly higher than the frequency of customers in northern California and in the State of California who reported the same. One of the most important characteristics that customers indicated they care about is power outage response, restoration and communication. A key finding is that the most preferred channel for outage and emergency management notifications is through "automated text messages," with the highest number of respondents choosing this option as their number one channel. Email and automated phone calls are the next most preferred channels. Item 17: Staff Report Pg. 2 Packet Pg. 270 of 281 Item 17 Item 17 Staff Report Three out of ten CPAU customers reported they already own an electric vehicle (EV), which is 21.8 percentage points higher than the frequency of customers in the State of California who reported the same. When broken down by age, at least 25 percent of customers in each age group own an EV. Customers in the age range of 55 to 64 have the highest rate of EV ownership, which is significantly higher than those aged 65 and older. The interest in buying an EV is high for all age groups, with at least 40 percent of customers in each age group being likely to make an EV purchase. However, there is significantly higher interest in purchasing an EV among customers 55 years of age and younger compared to those 65 years of age and older. When asked about barriers to purchasing an EV, CPAU customers responded: "long charge time," "limited range / distance per charge," and "higher initial cost to purchase." Other barriers include the "low availability of charging stations" and "low availability of EV options (makes / models)." Among those CPAU customers who currently have or plan to purchase an EV, over four -fifths reported being more likely to charge their EV during off-peak hours. As for charging station types, there is a strong preference for Level 2 chargers, with significantly more customers reporting a preference for using a Level 2 charger over a Level 1 charger. More customers who are planning to purchase an EV were unsure which charger type they would prefer than those who already own an electric vehicle. Over one-half of CPAU customers that reported a preference for Level 2 chargers indicated they are "very" or "somewhat likely" to install a Level 2 EV charger in their home if it meant it would take longer for them to charge their vehicle, but would reduce the need for CPAU to perform electric system upgrades that could be costly to them, as opposed to a faster charging system. Two-thirds of customers indicated they "strongly" or "somewhat support" CPAU investing in electrification, with over one-third indicating they "strongly support" these investments. CPAU customers from all age groups reported consistent support for CPAU investing in electrification. Nearly one-half of customers reported they are aware of CPAU's program for residents to switch from gas water heaters to electric heat pump water heaters. Age has a positive correlation with awareness, and the survey revealed that customers are significantly more aware of this electrification option as the respondent age increases. Over one-half of CPAU customers reported considering the purchase of any electrification products, with more customers considering a purchase of a heat pump water heater, ducted heat pump heating, ventilation, and air conditioning (HVAC) system, or induction stove than other electrification products. While not statistically significant, respondents aged 55 to 64 years reported greater consideration of electrification products than those under 55 years of age or 65 years of age and older. Further, significantly more homeowners reported awareness of CPAU's electrification program than renters. CPAU respondents provided higher ratings than customers across northern California, the State of California, and nationwide for ten of the eleven organizational characteristics that seem most important to customers. The top -rated characteristics among CPAU customers are "providing consistent and reliable electric service to customers," "restoring power in a reasonable amount Item 17: Staff Report Pg. 3 Packet Pg. 271 of 281 Item 17 Item 17 Staff Report of time after an outage," "providing good service and value for the cost of electricity," and "maintaining modern and reliable infrastructure." Conversely, customers placed less importance on CPAU "communicating with customers," "offering innovative programs and services," and their "community involvement." Two-thirds of CPAU customers responded that their electric rates are "very reasonable" or "somewhat reasonable," which is consistent with customers in northern California and the national average, and slightly higher than the State of California as a whole. CPAU customers who had a recent customer service interaction provided high ratings for the representative they spoke with, including "being courteous to you and treating you with respect," "understanding your problem or need," and "explaining things you needed to know about your problem." CPAU customers reported a significantly higher average positive rating for the customer service representative they spoke with than customers in Northern California and the State of California. Among CPAU customers, the top reasons for contacting their utility were to "report an outage," discuss a "high bill," and ask a "question on bill (not a complaint)." The most common methods for contacting CPAU were by telephone, CPAU's website, visiting the office or service center, and email. When looking at the difference between traditional contact methods (phone call, in - person visits) and digital methods (website visit, email, text message, smart phone app, or social media comment), significantly more customers reported utilizing traditional methods of contact than digital methods. Over three -fifths of customers reported a preference for receiving information from CPAU through email, followed by bill inserts and direct mail. Significantly more CPAU customers prefer digital channels (website, email, social media, mobile app, and text message) than traditional channels (TV, radio, newspaper, bill inserts, and direct mail). Customers 65 years of age or older reported a preference for receiving information through traditional channels than those under 55 years of age, and conversely significantly more customers under 55 years of age reported a preference for receiving information through digital channels than those 65 years of age or older. Water Customer Survey Results CPAU water utility customers provided an average positive rating of 78.9 percent (compared to 67.0 percent statewide) based on a series of organizational characteristics similar to the electric utility related to quality, service, reliability, communication, rates, and customer service. Customers provided a NP+S (advocates + loyal + satisfied customers) score of 87.4 percent. Of note, over one -quarter of customers (28.1 percent) reported being either an advocate of or a loyal customer of CPAU. CPAU received the highest ratings for "maintaining an adequate supply of water," and received higher ratings than customers in northern California and the State of California as a whole for this characteristic. Of CPAU customers, 85 percent indicated that the utility meets their expectations Item 17: Staff Report Pg. 4 Packet Pg. 272 of 281 Item 17 Item 17 Staff Report all or most of the time. More than 80 percent of customers reported being satisfied with their most recent customer service experience. Nearly one-half of water utility customers indicated they "try hard to use less water but could probably do a little more," while nearly two -fifths indicated they are "already doing everything I possibly can to use less water." Significantly more customers who rent their residence indicated they "try not to waste water but I do not focus very much on the amount of water I use" compared to homeowners. Among customers, the top reasons for contacting CPAU were for a "billing question," "high bill or consumption call," "general maintenance" or a "water leak / broken pipe." The most common methods for contacting CPAU were by phone, email, and visiting CPAU's website. Over four -fifths of water utility customers reported a preference for receiving information from their utility through email, followed by direct mail and then the CPAU website. As a whole, customers indicate a preference for digital communication channels (website, email, social media, and text message) significantly more than traditional channels (TV, radio, and direct mail). Customers from all age groups reported a significantly greater preference for receiving information through digital channels than through traditional channels. Customers provided an average positive score of 78.9 percent when rating CPAU on a series of organizational characteristics, which was significantly higher than the average positive ratings provided by customers from both the northern region and throughout the State of California. Customers rated "monitoring water quality," "maintaining an adequate supply of water," and "providing good service and value for the cost of water," as the most important organizational characteristics to them. Conversely, customers placed less importance on their utility "valuing its customers and being committed to providing excellent customer service," "communicating effectively with customers," and their "community involvement." When asked how frequently their utility meets their expectations, over four -fifths of customers reported their expectations are met "all" or "most of the time." Notably, significantly more customers indicated CPAU meets their expectations "all" or "most of the time" than customers in northern California or the State of California. Customers who had a recent customer service interaction provided the highest positive ratings for the representative "being courteous to you and treating you with respect." Customers provided a significantly higher average positive rating for their customer service experiences than compared to northern California utilities and customers in the State of California as a whole. Over one-half of customers indicated CPAU's customer service is among the best or above average, with one-half of customers indicating they are "among the best" compared to other service providers, such as banks, the telephone or cable company, or other utilities. Over two -fifths of customers indicated they are familiar with the "WaterSmart Home Water Report Program," the "Landscape Rebate Program" and "Landscape Workshops." Close to 90 percent of customers responded that their utility provides them data or a report of how much Item 17: Staff Report Pg. 5 Packet Pg. 273 of 281 Item 17 Item 17 Staff Report water their household used in the prior bill period. Of these respondents, nearly three-quarters indicated they find this data or report helpful. Slightly more renters who receive a household water consumption report indicated this report is helpful than homeowners who receive a similar report. Over two-thirds of customers indicated they would find "materials on specific ways to reduce your household's water use at no cost to you" useful, while nearly three -fifths reported they would find it useful to have a reading of how much water their household is using compared to other households in the neighborhood. Of note, slightly more customers who own their residence indicated they would find materials on ways to reduce water use to be useful than those who rent their household. Over four -fifths of customers reported a preference for receiving information from their utility through email, followed by direct mail and the CPAU website. As a whole, customers prefer digital channels (website, email, social media, and text message) significantly more than traditional channels (TV, radio, and direct mail). Customers from all age groups reported a significantly greater preference for receiving information through digital channels than through traditional channels. Key Findings from Survey Responses Results of these studies suggest that it is important for CPAU to elevate and optimize its online presence. This involves ensuring the website is not only user-friendly and mobile -responsive but also provides seamless access to critical information, including important updates, educational content, and avenues for customer inquiries and feedback. By prioritizing digital channels, CPAU can efficiently communicate essential updates, such as company operations and policies, while also creating opportunities to promote awareness of forthcoming programs and rebates. Staff will continue to seek out opportunities to reach utility customers in the most efficient and effective way for them to receive information on important programs, projects, and initiatives. As it relates to the electric utility, implementation of the City's new outage management system (OMS), which enables automated notifications to customers, will improve communication efforts for power outages and electrical incidents. CPAU staff will strive to communicate more broadly about its operations and efforts to maintain and upgrade its infrastructure and systems to support technological innovations, such as beneficial electrification and advanced metering infrastructure. By recognizing variations in customer behavior and responses, CPAU can strategically target outreach efforts to ensure homeowners, renters, businesses, and other customer groups, have access to resources tailored to their specific concerns about utility usage, efficiency, and sustainability. This inclusive approach will foster a collective commitment to environmental sustainability throughout the community, regardless of housing, economic, or other demographic statuses. Item 17: Staff Report Pg. 6 Packet Pg. 274 of 281 Item 17 Item 17 Staff Report FISCAL/RESOURCE IMPACT Funding of $23,000 is available in the FY 2024 Electric and Water operating budgets for the statewide residential electric and water customer satisfaction and Palo Alto oversampling surveys of Council priorities. STAKEHOLDER ENGAGEMENT CPAU staff were consulted to review and provide input to these statewide and oversample customer surveys. City of Palo Alto residential electric and water utility customers were contacted to gather responses to these surveys. ENVIRONMENTAL REVIEW The surveys are categorically exempt from the California Environmental Quality Act (CEQA). ATTACHMENTS None APPROVED BY: Dean Batchelor, Director of Utilities Staff: Catherine Elvert, Utilities Communications Manager Item 17: Staff Report Pg. 7 Packet Pg. 275 of 281 Item 18 Item 18 Staff Report City Council Staff Report From: City Manager CITY O F Report Type: INFORMATION REPORTS PALO Lead Department: Public Works ALTO Meeting Date: May 6, 2024 Report #:2312-2377 TITLE Update on the Deconstruction and Construction Materials Management Ordinance (Ordinance 5472, Palo Alto Municipal Code Title 5, Chapter 5.24); CEQA Status — Not a Project RECOMMENDATION This is an informational report only and no Council action is required. BACKGROUND In August 2018, Council accepted the 2018 Zero Waste Plan.' The plan contained 48 initiatives to help the City meet its sustainability and climate action goals. In June 2019, Council approved the Deconstruction and Construction Materials Management Ordinance2 (Deconstruction Ordinance, Ordinance 5472/ PAMC Title 5, Chapter 5.24,) with the effective date of July 1, 2020. The ordinance implements the following key initiatives of the 2018 Zero Waste Plan: • Initiative #1, Require Deconstruction and Source Separation of Construction Materials • Initiative #2, Direct Mixed Construction Materials to High Diversion Construction Materials Recycling Facilities • Initiative #4, Construction Project Recycling Technical Assistance In addition, implementing and expanding the Deconstruction Ordinance is a key action identified in the Sustainability and Climate Action Plan Goals and Key Actions accepted by Council in October 2022.2 The Deconstruction Ordinance applies to all residential and commercial projects undergoing a whole structure demolition and requiring a deconstruction permit on or after July 1, 2020. The objectives of the ordinance are to 1) increase salvage/reuse to the highest extent possible and 1 2018 Zero Waste Plan https://www.citvofoaIoaIto.ore/files/assets/public/v/1/zero-waste/zero-waste-website files/2018-zero-waste-plan.pdf 2 City Council, September 27, 2022; Agenda Item #10; SR #14606 https://www.cityofpaloalto.org//files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cm rs/2022/id.-14606-sca p -u pdate-reach-code-changes-and-advanced-h pwh-progra m. pdf Item 18: Staff Report Pg. 1 Packet Pg. 276 of 281 Item 18 Item 18 Staff Report 2) increase the amount and quality of recyclable materials from all construction and demolition projects, beginning with whole structure deconstruction projects. Palo Alto's Deconstruction Ordinance is the first of its kind in the United States that covers all commercial and residential projects undergoing whole structure removal regardless of the age of the buildings. Although some deconstruction projects occurred voluntarily in the City prior to the ordinance, the requirements and process were new to most permit applicants and contractors. During the development of the ordinance, staff estimated based on historical data that the ordinance would affect approximately 114 projects annually (100 residential and 14 commercial). Staff developed outreach and education materials explaining the ordinance requirements which were made available and sent to stakeholders prior to the ordinance effective date on July 1, 2020. Staff presented previous years' implementation updates to City Council for Fiscal Year 20213 and for Fiscal Year 2022.4 ANALYSIS Staff continues to conduct outreach and educate homeowners, general contractors, and architects when building permit applications are submitted to provide information on the ordinance requirements. Staff proactively schedules video conference calls to explain the ordinance and answer questions from the applicants and their contractors. When the deconstruction permits are issued, staff reaches out again to meet the general contractors and subcontractors hired for deconstruction onsite to review the requirements, walk through the property together, and ensure expectations are communicated. During deconstruction, staff inspects each project site multiple times to document progress, reiterates requirements for source separation and hauling of single stream materials, and addresses any concerns observed. The City's Development Center received 78 building permit applications for projects that involved whole structure demolition (65 residential and 13 commercial) covered under the Deconstruction Ordinance in Fiscal Year 2023, and received 74 permit applications in Fiscal Year 2022 (74 residential and 0 commercial). As summarized in Graph 1, there were 78 building permit applications in Fiscal Year 2023, the City issued 44 deconstruction permits (42 residential and 2 commercial), and 41 buildings were removed (40 residential and 1 commercial). This is a decrease from Fiscal Year 2022 when the City issued 60 deconstruction permits and 57 buildings were removed (55 residential and 2 commercial). Staff expects the number of building permit applications to increase in Fiscal Year 2024 based on the increased number of permit 3 City Council, January 24, 2022; Agenda Item #16; SR #13782 https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/2022/id.-13782-deconstruction-ordinance-implementation-update.pdf 4 City Council, December 19, 2022; Agenda Item #23; SR #14836 https://www.cityofpa loa lto.org/files/assets/pu bl is/v/1/cm r-14836. pdf Item 18: Staff Report Pg. 2 Packet Pg. 277 of 281 Item 18 Item 18 Staff Report applications already submitted, and the economy's and development industry's continued trajectory to recovery. Graph 1: Fiscal Year 2023 Deconstruction Permit Application and Project Status FY2023 Deconstruction Permit Application and Project Status 90 80 70 v 60 0 d 50 E v d 6 40 v E 30 D z 20 10 0 • Commercial • Residential Permit applications Permits issued Projects completed submitted 13 2 1 65 aI Zn Table 1 below summarizes the tonnages generated from the residential projects that completed permit documentation and had the whole structures removed in Fiscal Year 2023. The tonnages of materials were documented in the Green Halo Systems, a waste management tracking tool for development projects required by the Planning and Development Services Department. Graph 2 provides a visual of the percentage of material categories from these projects. In summary, the salvaged materials recovered for reuse (mostly lumber, cabinets, doors, and windows) accounted for seven percent of the materials from the 33 complete residential projects with completed documentations in the Green Halo System, and only eight percent of the materials were landfilled. Examples of materials landfilled included insulation and painted wood. Materials recovered for recycling included clean wood debris, drywall and concrete. This is consistent with Fiscal Year 2022, when approximately 3,635 tons of materials were created and 251 tons, or seven percent, were salvaged for reuse. Tonnage Percentage (%) Salvaged for Reuse 251 7% Item 18: Staff Report Pg. 3 Packet Pg. 278 of 281 Item 18 Item 18 Staff Report Recycled 880 24% Concrete Recycled 2,221 61% Landfilled 283 8% Total 3,635 Graph 2: Fiscal Year 2023 Residential Deconstruction Tonnage Percentages Residential Deconstruction Projects Tonnage La Concrete Recycled 61% Concrete is a heavy material with very high recyclability in the range of 95 to 99 percent. The common practice to manage concrete and other inert materials at most of the deconstruction projects is to separate and haul it as a single material for recycling. In Fiscal Year 2023, 2,316 tons of concrete were generated from the 33 residential projects, where 2,221 tons, or 95.9 percent, were recycled. Table 2 and Graph 3 below summarize the tonnages excluding concrete to provide a different perspective and focus on the management of the rest of the building materials. This focused analysis more accurately reflects the efforts and results to separate traditionally mixed waste at the deconstruction projects as required by the ordinance. Tonnage Percentage (%) Salvaged for Reuse 251 19% Recycled 880 67% Landfilled 189 14% Total 1,320 Item 18: Staff Report Pg. 4 Packet Pg. 279 of 281 Item 18 Item 18 Staff Report Graph 3: Fiscal Year 2023 Residential Deconstruction Tonnage Percentages Excluding Concrete Residential Deconstruction Project Tonnage (excluding concrete) Landfillec 14% Salvage 19% Staff conducts continuous communication, outreach, and education with the stakeholders involved in each covered project. Staff also oversees, documents, and addresses instances of noncompliance. The most common form of noncompliance is improper sorting of waste into single material types. In Fiscal Year 2023, staff proactively worked with the project team of a commercial project where the structure was planned for complete removal and considered a covered project under the ordinance. Despite multiple conversations, meetings, and coordination attempts initiated by staff to assist the project team to fully understand and comply with all aspects of the ordinance requirements, the structure was rapidly demolished, and materials were not source separated as required by the municipal code. Staff issued a citation to the permit applicant to address the violations observed. Staff is evaluating the enforcement plan and appropriate penalties to be assessed to deter future incidents of non-compliance. In Fiscal Year 2024, staff continues to implement requirements, monitor covered projects, and emphasize better onsite source separation for all active and upcoming deconstruction projects. Staff will also update outreach material and incorporate a feedback mechanism for project owners and stakeholders to acknowledge their understanding of all related ordinance requirements. With the ordinance now having been in place since July 2020, staff is also working with a consultant to conduct an evaluation of the Deconstruction Ordinance's cost and effectiveness. Item 18: Staff Report Pg. 5 Packet Pg. 280 of 281 Item 18 Item 18 Staff Report FISCAL/RESOURCE IMPACT The primary resource impact is staff time for project site visits, documentation, and communication with stakeholders including virtual meetings and onsite meetings with project owners and contractors. Staff spends approximately 9 staff hours for each project. Staff also spends time and resources on collaboration across different City departments and with industry representatives. In Fiscal Year 2023, this effort totaled approximately 0.33 full time equivalents of staff time or 700 hours annually. STAKEHOLDER ENGAGEMENT Outreach and education were conducted prior to when the Deconstruction Ordinance was implemented, which included direct communication with stakeholders of upcoming and active deconstruction projects. Engagement is ongoing through documents, emails, webpage, online and onsite meetings that emphasize reuse and source separation requirements for all active and upcoming deconstruction projects. Staff is also involved in regional, statewide, and nationwide efforts via working groups that focus on deconstruction, reuse, market development, and construction, demolition, and deconstruction debris management. ENVIRONMENTAL REVIEW This report is for informational purposes only with no action required by the Council and is therefore not a project subject to California Environmental Quality Act (CEQA) review. APPROVED BY: Brad Eggleston, Director Public Works/City Engineer Item 18: Staff Report Pg. 6 Packet Pg. 281 of 281