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HomeMy WebLinkAbout2025-09-15 City Council Agenda PacketCITY COUNCIL Regular Meeting Monday, September 15, 2025 Council Chambers & Hybrid 5:30 PM   Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference or in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900-6833   PUBLIC COMMENTS General Public Comment for items not on the agenda will be accepted in person for up to three minutes or an amount of time determined by the Chair. General public comment will be heard for 30 minutes. Additional public comments, if any, will be heard at the end of the agenda. Public comments for agendized items will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. Requests to speak will be taken until 5 minutes after the staff’s presentation or as determined by the Chair. Written public comments can be submitted in advance to city.council@PaloAlto.gov 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@PaloAlto.gov 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.  1 September 15, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. CALL TO ORDER   AGENDA CHANGES, ADDITIONS AND DELETIONS   PUBLIC COMMENT (5:30 - 6:00 PM) Members of the public may speak in-person ONLY to any item NOT on the agenda. 1-3 minutes depending on number of speakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda. COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:00 - 6:10 PM) Members of the public may not speak to the item(s).   STUDY SESSION (6:10 - 7:10 PM)   1.414 California Avenue [25PLN-00140]. Request for Council Prescreening to Rezone the Subject Property from Community Commercial (2) (CC[2]) to Planned Community/Planned Home Zoning and to Allow Construction of a Mixed-Use Building with 37 Units in a Six-Story Structure on a 16,231-Square-Foot (0.37 Acre) Site. CEQA Status: Not a Project.   CONSENT CALENDAR (7:10 - 7:15 PM) Items will be voted in one motion unless removed from the calendar by three Council Members.   2.PUBLIC HEARING: Adoption of Voluntary Residential Electric Service Time-of-Use Rates (E-1 TOU) as Recommended by the Finance Committee; CEQA Status: Not a Project 3.Finance Committee Recommendation for City Council to Direct Staff to Follow the Reasonable-Cost Analysis Required by Proposition 26 for the Gas Cost of Service Analysis and Collaborate with the Utilities Advisory Commission to Develop Revised Gas Rate Schedules Effective January 2026, Based on Five Design Principles; CEQA – Not a Project 4.Authorization to Execute Amendment to Legal Services Agreement S25193131 with Diepenbrock Elkin Dauer McCandless to Increase Amount by $1,086,000 for Total Not-to- Exceed Amount of $1,171,000; CEQA Status – Not a Project. 5.Approval of Contract Amendment Number 1 to Contract C21177635B with Ingram Library Services in the amount of $255,000 for Print Materials and Services for a new not-to-exceed (NTE) of $455,000; and Contract Amendment Number 1 to Contract C21177635C with Midwest Tape in the amount of $53,000 for Media and Digital Materials and Services for a new not-to-exceed (NTE) of $753,000; CEQA Status – Not a Project.  2 September 15, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. 6.Approval of 1) Amendment No. 8 to Contract No. C16163034A with Cumming Management Group, Inc. to Add $208,528, Increasing the Not-to-Exceed Amount to $10,683,771, for Additional Construction Management Services; 2) Professional Services Contract No. S26195542 with 4Leaf, Inc. in the Amount of $150,579 to Provide Inspector of Record Services; and 3) Amendment to the Fiscal Year 2026 Budget Appropriation for the Capital Improvement Fund to Support the New Public Safety Building Capital Improvement Program Project (PE-15001); CEQA Status - Environmental Impact Report for the New Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772) 7.Approval of the Third Amended and Restated Purchase Order Number 4521000199 with Altec Industries, Inc., to Increase the Purchase Order Amount by $365,983 to a New Not- to-Exceed Amount of $1,073,075, including a Contingency Amount of $51,099, for the Purchase of Two 2025 Peterbilt 548 Hydraulic Digger Derricks; and Amend the FY 2026 Budget in the Vehicle Replacement and Maintenance Fund and the Electric Fund; CEQA Status – Exempt, Not a Project 8.FIRST READING: Adoption of Four Ordinances, as Recommended by the Retail Committee, to Amend and Reorganize Stormwater and Wastewater Management Requirements by Amending PAMC Chapter 16.09 (Sewer Use Ordinance), Amending Chapter 16.11 (Stormwater Pollution Prevention), Adding New Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease), and Adding New Chapter 16.66 (Hauled Liquid Waste); Adoption of Two Resolutions Establishing Regulations to Implement PAMC Chapters 16.11 and 16.13; Adoption of a Resolution Amending and Restating the Administrative Penalty Schedule and Civil Penalty Schedules for Certain Violations of the PAMC; CEQA Status – Exempt under CEQA Guidelines Section 15308 9.QUASI-JUDICIAL. 400 Mitchell Lane [25PLN-00006]: Recommendation From the Planning and Transportation Commission to Uphold the Director’s Decision to Approve a Conditional Use Permit Allowing a Private University Educational Use Within an Existing Building. CEQA Status: Exempt in accordance with CEQA Guidelines Section 15301 (Existing Facilities). Zone District: PF. CITY MANAGER COMMENTS (7:15 - 7:30 PM)   BREAK (15 MINUTES)  3 September 15, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. ACTION ITEMS (Item 10: 7:45 - 9:00 PM, Item 11: 9:00 - 10:00 PM, Item 12: 10:00 - 10:15) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.   10.Approval of a Director’s Interpretation Pursuant to PAMC Section 18.01.025 Concluding That Noncomplying Residential Gross Floor Area may not be Relocated Within a Structure; Denial of the Associated Appeal; Direction to Prepare a Future Code Amendment for Administrative De Minimis Exceptions to the Zoning Code; CEQA: Exempt Pursuant to CEQA Guidelines Section 15061(b)(3) 11.Approval of a Third Phase Agreement with Northern California Power Agency for the Purchase of Battery Energy Storage Capacity from Trolley Pass Project LLC, over a Term of up to 20 Years for a Total Not to Exceed Amount of $161.7 Million; CEQA status: not a project under CEQA Guidelines sections 15378(a), (b)(5) 12.Designation of Voting Delegate and Alternate for the League of California Cities Annual 2025 Conference, to be held October 8-10, 2025, in Long Beach, California ADJOURNMENT INFORMATION REPORTS Information reports are provided for informational purposes only to the Council and the public but are not listed for action or discussion during this meeting’s agenda.   A.Semi-annual Reports of Contracts Awarded by the City Manager, Procurement Officer or Other Designated Employees for the period of January 1, 2025 through June 30, 2025; CEQA Status- Not a Project. B.Accessory Dwelling Unit (ADU) – 2025 Quarter 2 (April– June 2025) Report  4 September 15, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. OTHER INFORMATION Standing Committee Meetings this week Rail Committee September 16, 2025 Finance Committee September 16, 2025 Climate Action and Sustainability Committee September 19, 2025 Public Comment Letters Schedule of Meetings      5 September 15, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/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@PaloAlto.gov. 2.For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3.Spoken public comments for agendized items using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom-based meeting. Please read the following instructions carefully. ◦You may download the Zoom client or connect to the meeting in- browser. If using your browser, make sure you are using a current, up-to-date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. ◦You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. ◦When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. ◦When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 4.Spoken public comments for agendized items using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN Meeting ID: 362-027-238 Phone: 1-669-900-6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329-2550 (voice) or by emailing ada@PaloAlto.gov. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.    6 September 15, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas.   California Government Code §84308, commonly referred to as the "Levine Act," prohibits an elected official of a local government agency from participating in a proceeding involving a license, permit, or other entitlement for use if the official received a campaign contribution exceeding $500 from a party or participant, including their agents, to the proceeding within the last 12 months. A “license, permit, or other entitlement for use” includes most land use and planning approvals and the approval of contracts that are not subject to lowest responsible bid procedures and have a value over $50,000. A “party” is a person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use. A “participant” is a person who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the definition of “financial interest” in the Political Reform Act, which encompasses interests in business entities, real property, sources of income, sources of gifts, and personal finances that may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a proceeding, and you have made a campaign contribution to a Council Member exceeding $500 made within the last 12 months, you must disclose the campaign contribution before making your comments.  7 September 15, 2025 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. City Council Staff Report From: City Manager Report Type: STUDY SESSION Lead Department: Planning and Development Services Meeting Date: September 15, 2025 Report #:2509-5163 TITLE 414 California Avenue [25PLN-00140]. Request for Council Prescreening to Rezone the Subject Property from Community Commercial (2) (CC[2]) to Planned Community/Planned Home Zoning and to Allow Construction of a Mixed-Use Building with 37 Units in a Six-Story Structure on a 16,231-Square-Foot (0.37 Acre) Site. CEQA Status: Not a Project. RECOMMENDATION Staff recommends that Council conduct a prescreening and provide informal comments regarding the applicant’s request to rezone 414 California Avenue from Community Commercial (2) (CC(2)) to Planned Community/Planned Home Zoning (PHZ).1 Comments provided during the prescreening process are not binding on the City nor the applicant. EXECUTIVE SUMMARY This prescreening is a request by the applicant to rezone the subject property, which is currently zoned Community Commercial (CC[2]) to “Planned Home Zoning (PHZ).” The project site is 16,230 square feet, and most recently was occupied by Bank of the West. The existing building is currently vacant. The proposed project includes restaurant/retail space, and 37 housing units. The project also proposes encroachments and modifications within the public right-of-way on California Avenue and Mimosa Lane. In accordance with Palo Alto Municipal Code (PAMC) Section 18.79.030(A), a prescreening review is required for legislative changes, including rezoning, prior to submittal of a formal application. Prescreenings are intended to solicit early feedback on proposed projects and, like all study sessions, cannot result in any formal action. Since this proposal may return to the City Council as a formal application, Councilmembers should refrain from forming firm opinions supporting or opposing the project. 1 Referred to in this report as "Planned Home Zoning" to emphasize the focus on housing as the benefit to the community. PAMC Section 18.38, which outlines the requirement and process for Planned Community (PC) Zoning, remains the underlying code supporting application of this policy. Item 1 Item 1 Staff Report        Item 1: Staff Report Pg. 1  Packet Pg. 8 of 445  Following this prescreening, the applicant may choose to file a formal application to amend the BACKGROUND Item 1 Item 1 Staff Report        Item 1: Staff Report Pg. 2  Packet Pg. 9 of 445  This project is located within the California Avenue downtown district adjacent to a wide variety of retail, restaurants, and personal services. The site is specifically between Country Sun Natural Foods market and The Cobblery cobbler. The adjacent buildings are both one story, and buildings in the vicinity vary from one story to four stories. 3. That staff report includes a map of the potential/proposed improvements to the California Avenue right-of-way, including in front of 414 California Avenue. California Avenue and adjacent streets are also used for the Farmer’s Market every Sunday morning, as well as community events such as 3rdThursday. 4 Council approved the resolutions associated with outdoor dining and permit fees enabling activation to continue in its current state. Council also provided direction to staff to revise the outdoor activation program guidelines seeking revisions for outdoor parklet like structures and bike lane adjustments. ANALYSIS Height: 83 feet in height where up to 37 feet is allowed (60 feet under HIP); Floor Area: A 5.13:1 FAR where a maximum of 2.0 total FAR is allowed (0.6 residential FAR allowed)(2.6:1 FAR allowed under HIP); 3 Retail Committee Staff Report, May 21, 2025, Item 1: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=17618 4 City Council Staff Report, June 17, 2025, Item 17: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=17567 Item 1 Item 1 Staff Report        Item 1: Staff Report Pg. 3  Packet Pg. 10 of 445  Open Space: 1,612 square feet of useable open space is proposed, all of which is private and available to five of the units, where 150 square feet of usable open space per unit is required. See additional discussion below. Parking: 88 parking spaces are proposed where 169 spaces are required (161 required under HIP). This site is eligible to use AB 2097 to reduce parking to 0 with a TDM plan. Roof overhangs encroach into the public right of way on California Avenue and Mimosa Lane. Portions of the upper floors, where the elevators and stairways are located, do not meet the 10 foot required rear setback for residential uses. No street-side setback is proposed on Mimosa Lane, where five feet is required; The project also deviates from several Objective Design Standards in PAMC Chapter 18.24, such as: Stepback (PAMC 18.24.050(b)(1)): The building massing as proposed is not stepped back where it is more than 20 feet taller the average height of an adjacent building. This step back would start within two vertical feet of the height of the adjacent building. The step back would be a minimum depth of six feet along both the façade on the primary building frontage and the facing façade of the adjacent building, and the step shall occur for a minimum of 70% of each façade length. Façade Modulation (PAMC 18.24.050(b)(3)): Additional information would be needed to analyze the façade modulation. The side and rear facades lack upper floor modulation. Base/Middle/Top (PAMC 18.24.060(c)(1): Although the design has a strong base and middle, the top is less defined. The fenestration variation is also limited on the upper floors. Planned Community/PHZ projects are not required to comply with Chapter 18.24 of the code. However, it is analyzed for the purposes of understanding how the design could be improved to be more consistent with the standard project requirements. Under the CC(2) zoning a project could also opt to be evaluated in accordance with the context-based design criteria in-lieu of the objective design standards under 18.24. Usable Open Space The proposed plans include balconies at all upper levels, wrapping most of the façade, however these four foot wide balconies do not count as useable open space as they do not meet the minimum depth requirement of six feet. Additionally, five roof decks are proposed. In the CC(2) zoning district, roof decks are only allowed if they are for common open space, and these are private open space (PAMC 18.40.240 [c]). Refuse Pick Up The project currently proposes a shared refuse room for residential and commercial uses, which is not allowed by the Code. Additonally the refuse room is not sufficiently sized to Item 1 Item 1 Staff Report        Item 1: Staff Report Pg. 4  Packet Pg. 11 of 445  accommodate the project’s needs and would need to be redesigned. Staff would expect the trash room to be designed in a manner that allows the bins to be pulled directly from the trash room and would not support staging of the bins within public right-of-way. Public Right-of-way Modifications and Encroachments PC Special Requirements Item 1 Item 1 Staff Report        Item 1: Staff Report Pg. 5  Packet Pg. 12 of 445  by the City, as recommended for approval by the Retail Committee. Parking POLICY IMPLICATIONS Item 1 Item 1 Staff Report        Item 1: Staff Report Pg. 6  Packet Pg. 13 of 445  applications due to their legislative nature, the lack of a coordinated planning policy that considers proximity to the rail station, the California Avenue street closure, parcel sizes, street access, and broader urban design and placemaking objectives may result in a less cohesive neighborhood character. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 1 Item 1 Staff Report        Item 1: Staff Report Pg. 7  Packet Pg. 14 of 445  Bank of_the West Country Sun 32.0' 35.2' 71.1' 26.7' 50.9' 125.0' ' 107.7' 40.0' 11.6' 46.1' 75.0' 40.0'22.2' 90.0' 271.6' 239.4' 90.0 48.0' 127.0' 50.2' 127.0' 50.2' 125.0' 20.0' 125.0' 20.0' 125.0' 50.0' 125.0' 50.0' 125.0' 46.0' 125.0' 46.0' 125.0' 37.0' 125.0' 37.0' 125.0' 65.5' 125.0' 65.5' 93.0' 61.0' 26.7' 71.1' 35.2' 40.0' 58.6' 40.0' 58.6' 22.7' 7.2' 27.7'2.0' 62.0' 25.6' 90.0' 22.7' 90.0' 40.9' 90.0' .3' 35.0' 53.4' 35.0' .3' 90.0' 43.8' 125.0' 44.0' 92.8'' 62.0' 2.0' 27.7' 92.8' 18.0' 50.0'.' 100.0' 14.1' 237.8' 00.0' 75.0' 84.4' 75.0' 79.0' 21.0' 79.0' 21.0' 21.0' 110.0' 20.2' 14.1' 100.0' 30.3' 95.0'125.0'125.0' 51.0' 125.0' 51.0' 125.0' 50.0' 125.0' 50.0' 125.0' 42.0' 125.0' 42.0' 125.0' 50.0' 125.0' 50.0' 110.0' 50.0' 110.0' 50.0' 110.0' 50.0' 110.0' 50.0' 110.0' 50.0' 110.0' 50.0' 195.0' 110.0' 125.0' 130.2' 115.0' 14.1' 120.3' 115.0' 50.0' 125.0' 40.0' 14.1' 125.0' 32.5' 125.0' 32.5' 49.5' 49.5' 49.5' 49.5' 49.5' 86.5' 86.5'86.5' 79.0' 70.5' 70.5' 29.5' 29.5'29.5' 46.3' 71.7' 440 454 415 425-431 437- 441 381- 395 403- 409 433-447 330- 350 366- 370 406-410 2 405-409 451453 448450 460 456 2450 421 475477 465 463 461 459 480 450 435 433 447 445 24312415 2438415417421 360364 392 413 414 440 444 442 VENUE AS LD LANE NEW MAYF CALIFORNIA AVENUE CALIFORNIA AVENUE PERAL MIMOSA LANE MBRIDGE AVENUE JACARANDA LANE Lot C-8 Lot C- Parking This map is a product of theCity of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Project Site Current Features 0' 48' Attachment ALocation Map414 California Ave. CITY OF PALO ALTOINCORPORATED CALIFORNIA P a l o A l t oT h e C i t y o f APRIL 16 1894 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Altoekallas, 2025-08-22 14:45:33Attachment A. Location Map (\\cc-maps\Encompass\Admin\Personal\Planning.mdb) Item 1 Attachment A - Location Map        Item 1: Staff Report Pg. 8  Packet Pg. 15 of 445  ATTACHMENT B 414 California Ave, 25PLN-00140 Table 1: COMPARISON WITH CHAPTER 18.16 (CC(2) DISTRICT) AND CHAPTER 18.14 (HOUSING INCENTIVES) Mixed Use and Residential Development Standards Regulation Required Proposed Minimum Site Area, width and depth No Requirement 16,230.95 sf. Minimum Front Yard 0' - 10' to create an 8' - 12' effective sidewalk width 0 ft. ground floor 10 ft. upper floor, except at elevator/stairs Rear Yard (New Mayfield Lane)10' for residential portion; no requirement for commercial portion 0 ft. ground floor 10 ft. upper floor, except at elevator/stairs Interior Side Yard No Requirement 2 ft. 6.5 in. on ground floor 1 ft. 1.75 in. on upper floors Street Side Yard (Mimosa Lane)5 feet 0 ft. ground floor 10 ft. upper floor, except at elevator/stairs Min. yard for lot lines abutting or opposite residential districts or residential PC districts Not applicable, no abutting residential districts/PCs Not applicable Build-to-lines (7) 50% of frontage built to setback on California Avenue; 33% of side street built to setback on Mimosa Lane Complies Max. Site Coverage 100% (16,230.95 sf)99% (16,068 sf) Max. Building Height (CC(2))37 feet (4)78 feet 6 inches to parapet 83 feet to top of roof deck access Max. Building Height (HIP)60 feet (4)See above Max. Floor Area Ratio (FAR) (CC(2)) 0.6:1 residential (9,738.6 sf) 2.0:1 non-residential (32,460 sf) Not to exceed 2.0:1 (32,460 sf) total 4.17: 1 Residential (67,667.43 sf) 0.96:1 Non-residential (15,550.72 sf) 5.13: 1 (83,218.15 sf) total Max. Floor Area Ratio (FAR) (HIP) 2.6 residential or residential with mixed-use on the ground floor (42,198.6 sf) See above Max. Residential Density No Maximum Complies Daylight Plane for lot lines abutting one or more residential zone districts other than an RM- 40 or PC Zone None Not applicable Usable Open Space (Private and/or Common)150 sf per unit 1,612 sf of useable open space = 43 sf per unit, however only 5 of the units have access to these spaces. Item 1 Attachment B - Zoning Comparison Table        Item 1: Staff Report Pg. 9  Packet Pg. 16 of 445  Minimum Mixed Use Ground Floor Commercial FAR 0.25:1 (4,057.7 sf) Retail Preservation applies Approximately 15,063 sf proposed (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.. (4) As measured to the peak of the roof or the top of a parapet; penthouses and equipment enclosures may exceed this height limit by a maximum of five feet, but shall be limited to an area equal to no more than ten percent of the site area and shall not intrude into the daylight plane. (7) 25 foot driveway access permitted regardless of frontage. Table 2: CONFORMANCE WITH CHAPTER 18.52 (Off-Street Parking and Loading) Type Required Existing Proposed Special Requirements This project is located within a half mile of the California Ave. CalTrain Station. AB 2097 applies. 0 parking spaces required. 74 parking stalls proposed, TDM plan will be required. Vehicle Parking per PAMC 18.52 per land use 1 per studio/1 bed 2 per 2+ bed (53 spaces) For ground floor uses: 1 space for each 60 gross sq. ft. of public service area, plus 1 space for each 200 gross sq. ft. for all other areas. Seating area is approximately 3,254 sf (54.23 spaces) Rest of ground floor is approximately 12,296 sf (61.48 spaces) 169 spaces required 14 spaces paid into the parking district. 20 spaces provided onsite. 74 parking stalls proposed plus 14 district spaces 88 spaces total. Vehicle Parking per PAMC 18.14 (HIP) plus PAMC 18.52 for non-residential land uses. 1 per studio/1 bed 1.5 per 2+ bed (45 spaces) For ground floor uses: 1 space for each 60 gross sq. ft. of public service area, plus 1 space for each 200 See above See above Item 1 Attachment B - Zoning Comparison Table        Item 1: Staff Report Pg. 10  Packet Pg. 17 of 445  gross sq. ft. for all other areas. Seating area is approximately 3,254 sf (54.23 spaces) Rest of ground floor is approximately 12,296 sf (61.48 spaces) 161 spaces required Bicycle Parking 1 LT space per unit (37) 1 ST space per 10 units (4) 12 spaces for the ground floor uses (5 LT, 7 ST) None provided, potential bike parking area shown on both garage levels. Loading Space 1 loading spaces for less than 100,000 sf No loading space required for residential projects with fewer than 50 units. 1 off-street space Item 1 Attachment B - Zoning Comparison Table        Item 1: Staff Report Pg. 11  Packet Pg. 18 of 445  SPF:architects 8609 Washington Blvd. Culver City, CA | www.spfa.com WRITTEN PROJECT DESCRIPTION - 414 CALIFORNIA AVENUE, PALO ALTO Project Summary: The proposed development at 414 California Avenue is a new six-story mixed-use building that includes approximately 10,000 square feet of ground floor restaurant and market uses, 14 affordable and market-rate apartments, and 23 for- sale residential condominiums. Two levels of subterranean parking provide 74 total spaces. The overall building height is 75’-0” to the top of the roof structure and 78’-6” to the top of parapet—intentionally designed to remain below the 75’ occupiable floor threshold that would classify the building as a high-rise. Located within the California Avenue Commercial District and surrounded by existing commercial and multi-family buildings, the project is consistent with the City’s ongoing effort to densify infill sites near transit and services. There are no single-family homes in the immediate vicinity, and the scale and intensity of the proposed development are well- suited to the surrounding context. While the proposed commercial uses and square footage are permitted by code, the project seeks rezoning to allow an increase in residential floor area (beyond the current 0.6:1 RFA limit) and overall height. We believe these modifications support the City’s broader planning goals and regional housing objectives. Design Concept & Site Relationship: The design approach takes inspiration from the cultural and material heritage of the region—most notably the Muwekma Ohlone Tribe, the area's Indigenous inhabitants. The façade expresses this influence through a refined architectural screen system that references traditional basket weaving and ceremonial regalia. This “Golden Weave” exterior system functions not only as an expressive visual motif, but also as an environmental filter, offering solar shading and layered transparency across the upper residential levels. Ground floor uses activate both California Avenue and Mimosa Lane with a curated mix of restaurants, butcher, bakery, and market-style retail. These uses are complemented by upgraded public realm improvements, including widened sidewalks, planters, and seating areas, designed to reinforce the project’s “Gateway to California Avenue” concept. An enhanced pedestrian experience is prioritized, while vehicular access is located at the rear of the property via New Mayfield Lane. The massing is stepped to respect zoning code and urban adjacencies: • The building steps back at residential floors to provide a consistent 10-foot setback above the podium, complying with city standards. • Balconies protrude 4’-0” into the residential setback. • Stairs are exposed and articulated to break up the building volume and provide light, and air into the center of the building. • Private rooftop terraces are set back for individual and neighborhood privacy. Preliminary Review Focus: We respectfully request Council and ARB to provide feedback in the following areas: • Density: Is the proposed increase in Residential Floor Area and density in alignment with the future growth and evolution of California Avenue? • Massing & Height: Does the project appropriately scale to its commercial surroundings? We are under the high-rise classification and believe this six-story massing is a reasonable for the site. • Public Realm Interface: Does the project contribute positively to the pedestrian experience at California Avenue and Mimosa Lane? • Zoning Compatibility: Given the absence of single-family residences in the area and the site's location in an active commercial zone, we believe the increased density and height are well justified. Does the Board agree with this position? • Cultural Heritage: The design draws from the heritage of the Muwekma Ohlone Tribe and other Indigenous communities of the region. We welcome feedback on how this is reflected in the architecture and are exploring ways to deepen the connection. A dedicated zone on the California Avenue façade is envisioned for a permanent artwork honoring Indigenous history, and the landscape strategy may be refined to further acknowledge the site's cultural significance. Item 1 Attachment C - Applicant's Project Description        Item 1: Staff Report Pg. 12  Packet Pg. 19 of 445  From:Amy Asin To:Council, City Subject:Please Support 414 California Ave Date:Tuesday, August 26, 2025 11:33:35 AM CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. i My name is Amy Asin and I live in the St Francis neighborhood. Please support the proposalfor 37 homes at 414 California Avenue. We need more housing near retail and transportation. This project will promote sustainable lifestyles, support local businesses, and bring muchneeded housing options to our community. I spend time on Cal Ave 4-5 times per week. Having a vibrant neighborhood setting there with residents is critical. It’s about housingdensity but also about vitality. Thank you for your leadership to support homes for all in our community. Amy Asin This message needs your attention This is a personal email address. This is their first email to your company. Mark Safe Report Item 1 Attachment D - Public Comments        Item 1: Staff Report Pg. 13  Packet Pg. 20 of 445  From:Bill Fitch To:Council, City Subject:Please Support 414 California Ave Date:Tuesday, August 26, 2025 12:19:11 PM CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. i My name is Bill Fitch and I live in Evergreen Park. Please support the proposal for 37 homes at 414 California Avenue. We need more housingnear retail and transportation. This project will promote sustainable lifestyles, support local businesses, and bring much needed housing options to our community. Bring life to Calave with more housing for people. Thank you for your leadership to support homes for all in our community,Bill Fitch This message needs your attention This is a personal email address. This is their first email to your company. Mark Safe Report Item 1 Attachment D - Public Comments        Item 1: Staff Report Pg. 14  Packet Pg. 21 of 445  From:Rodney Leggett To:Council, City Subject:Please Support 414 California Ave Date:Tuesday, August 26, 2025 4:16:29 PM CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. My name is Rodney Leggett and I live in near downtown Palo Alto Please support the proposal for 37 homes at 414 California Avenue. We need more housing near retail and transportation. This project will promote sustainable lifestyles, support local businesses, and bring much needed housing options to our community. Thank you for your leadership to support homes for all in our community, Rodney Leggett Item 1 Attachment D - Public Comments        Item 1: Staff Report Pg. 15  Packet Pg. 22 of 445  From:Zachary Anglemyer To:Council, City Subject:Please Support 414 California Ave Date:Tuesday, August 26, 2025 6:35:36 PM CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. My name is Zachary Anglemyer and I live in San Francisco and formerly lived in Woodside. Please support the proposal for 37 homes at 414 California Avenue. We need more housing near retail and transportation. This project will promote sustainable lifestyles, support local businesses, and bring much needed housing options to our community. We must look at our community development from a circular perspective that includes the well being of our community at large from day one. I request that this project be reviewed through this lens and that the community stresses the importance of architectural design that leaves a lasting impact. Thank you for your leadership to support homes for all in our community, Zachary Anglemyer 303-250-2150 “Ascende Omnem Montem” Item 1 Attachment D - Public Comments        Item 1: Staff Report Pg. 16  Packet Pg. 23 of 445  From:susan chamberlain To:Council, City Subject:Please Support 414 California Ave Date:Wednesday, August 27, 2025 11:35:20 AM CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. My name is Susan Chamberlain and I live in Downtown North. Please support the proposal for 37 homes at 414 California Avenue. We need more housing near retail and transportation. This project will promote sustainable lifestyles, support local businesses, and bring much needed housing options to our community. Thank you for your leadership to support homes for all in our community, Susan Chamberlain Item 1 Attachment D - Public Comments        Item 1: Staff Report Pg. 17  Packet Pg. 24 of 445  From:Tran, Vickie To:Kallas, Emily; Raybould, Claire Cc:Lait, Jonathan; Armer, Jennifer Subject:FW: Please Support 414 California Ave Date:Wednesday, September 3, 2025 1:32:39 PM Hi Emily/Claire, Please see below for public comment on 414 Cal Ave. VICKIE TRANAdministrative Assistant to the DirectorPlanning and Development Departmentvickie.tran@paloalto.gov www.paloalto.gov -----Original Message-----From: Velasquez, Ingrid <Ingrid.Velasquez@paloalto.gov>Sent: Wednesday, September 3, 2025 8:24 AMTo: Lait, Jonathan <Jonathan.Lait@paloalto.gov>; Armer, Jennifer <Jennifer.Armer@paloalto.gov>; Tran, Vickie<Vickie.Tran@paloalto.gov>Cc: Nose, Kiely <Kiely.Nose@paloalto.gov>; Gaines, Chantal <Chantal.Gaines@paloalto.gov>; City Mgr<CityMgr@paloalto.gov>Subject: FW: Please Support 414 California Ave Good morning, Forwarding the comment below for awareness. Thanks, Ingrid Ingrid VelásquezAdministrative AssistantOffice of the City Manager(650) 329-2354| Ingrid.Velasquez@PaloAlto.gov www.PaloAlto.gov -----Original Message-----From: Rachel Miller <rlhello@yahoo.com>Sent: Tuesday, September 2, 2025 12:02 PMTo: Council, City <city.council@PaloAlto.gov>Subject: Please Support 414 California Ave Item 1 Attachment D - Public Comments        Item 1: Staff Report Pg. 18  Packet Pg. 25 of 445  CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. My name is Rachel Miller and I live in the Miranda Green neighborhood of Palo Alto. Please support the proposal for 37 homes at 414 California Avenue. We need more housing near retail andtransportation. This project will promote sustainable lifestyles, support local businesses, and bring much neededhousing options to our community. My husband and I just became empty nesters as we dropped our youngest off at college a couple weeks ago. We nolonger need a big house within walking/biking distance of schools, but in a few years, after retirement, would like todownsize into a condo within walking distance of amenities like grocery stores, restaurants, a train station, etc. Wewould like to be able to stay in our community, especially since my mother lives nearby and needs my help.Through my parents, I’ve seen firsthand how dangerous and isolating it can be for aging people to stay too longalone in homes with staircases, that require driving in order to go anywhere, that require maintenance that becomestoo difficult to manage. We need to allow more housing for people at all stages of life, whether young singles,families, or retirees. If there are suitable places for people like my husband and I to downsize into, that frees up ourlarge home for a growing young family, which will help sustain our excellent schools which are experiencingplummeting enrollment, as well as generate more property taxes that keep all city services funded. Thank you for your leadership to support homes for all in our community, Rachel Miller Sent from my iPhone Item 1 Attachment D - Public Comments        Item 1: Staff Report Pg. 19  Packet Pg. 26 of 445  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 Project Plans In order to reduce paper consumption, a limited number of hard copy project plans are provided to Council 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 “414 California” 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.paloalto.gov/Departments/Planning-Development-Services/Current- Planning/Projects/414-California-Ave Item 1 Attachment E - Link to Project Plans        Item 1: Staff Report Pg. 20  Packet Pg. 27 of 445  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Utilities Meeting Date: September 15, 2025 Report #:2505-4750 TITLE PUBLIC HEARING: Adoption of Voluntary Residential Electric Service Time-of-Use Rates (E-1 TOU) as Recommended by the Finance Committee; CEQA Status: Not a Project RECOMMENDATION The Finance Committee, Utilities Advisory Commission and staff recommends that the City Council adopt a resolution (Attachment A: Resolution) adding voluntary Rate Schedule E-1 Time of Use (TOU) applicable to separately metered single-family residential dwellings receiving electric service effective January 1, 2026 (Attachment B: Rate Schedule E-1 TOU). EXECUTIVE SUMMARY The Finance Committee, Utilities Advisory Commission and Staff recommend introducing a voluntary residential electric time-of-use rate plan effective on January 1, 2026 (E-1 TOU Rate Schedule). Separately metered single-family residential dwellings receiving electric service from the City of Palo Alto with Advanced Metering Infrastructure (AMI) meters may opt-in to this new E-1 TOU rate plan. The proposed E-1 TOU rates align with the requirements of Article XIII C of the California Constitution (often referred to as Proposition 26) to align with the cost of electricity. The proposed E-1 TOU rates also align with the cost of electricity at the time of use. The proposed E- 1 TOU rates provide customers the opportunity to take advantage of lower-cost and lower carbon intensity time periods for electric vehicle charging or other electric uses. TOU rates are a type of electricity pricing where the cost of electricity varies depending on the time of day the electricity is used. Under this structure, electricity prices are typically lower during off-peak hours, when demand is low, and higher during peak hours, when the grid is under more strain due to higher demand compared to available electricity supply. Staff considered the marginal cost of energy, as well as several other factors described in detail below to determine the hours of the day that each TOU rate applies. Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 1  Packet Pg. 28 of 445  BACKGROUND At the December 4, 2024 UAC meeting, Staff presented preliminary rate proposals for FY 2026 and provided an update on TOU rates as an informational item for discussion purposes.1 On June 4, 2025, these TOU rate proposals were reviewed and unanimously recommended for approval by the UAC (Staff Report #2503-4361)2. On September 2, 2025, the E-1 TOU rate proposals were reviewed and unanimously recommended for approval by the Finance Committee (Staff Report #2506-4899)3 Staff recommends a January 1, 2026 implementation date for E-1 TOU to allow sufficient time for staff to prepare for its implementation. Staff estimates that 95% of residential customers will have electric AMI meters installed by the end of December 2025. The remaining 5% of residential customers are estimated to receive AMI meters by April 2026. Customers will first need to have an AMI meter installed to be eligible to participate in the E-1 TOU rate. ANALYSIS The Electric Utility’s rates are evaluated and implemented in compliance with cost-of-service requirements set forth in the California Constitution and applicable statutory law. This E-1 TOU recommendation reflects the proposed FY 2026 costs and revenues for the Electric Utility that are reflected in the financial forecast that was approved by the Council on June 16, 2025, and the “City of Palo Alto Electric Cost of Service and Rate Study” by EES Consulting, Inc. in 2023/2024 (FY 2024 COS Study), supplemented by EES’s April 1, 2025 memo on “Electric Time of Use Rate Design for E-1: Residential Customer Class” (Attachment C: COSA Study’s E-1 TOU Supplement). The new E-1 TOU rates are designed to generate the same FY 2026 revenue as the standard E-1 rates, assuming customers do not change their electric usage patterns. Because the number of customers opting in to E-1 TOU will gradually increase over time, the revenue risk to the Electric Utility will be minimal as adjustments to the rate will be implemented over time as more data is available regarding changes in customers’ electric usage patterns. These residential TOU rates align with the cost of electricity at the time of use. Residential customers may opt-in to this rate to take advantage of lower-cost time periods for electric vehicle charging and other appliances with flexible loads can also take advantage of this rate. As presented in the COSA Study’s E-1 TOU Supplement, the hours of the day that each TOU rate applies (peak, off-peak and super off-peak) or “TOU periods” are designed with consideration of 1 The transcript from the meeting is available on the City’s website: https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=15106&compileOutputType=1. 2 UAC Staff Report #2503-4361 on June 4, 2025 3 Finance Committee Staff Report #2506-4899 on September 2, 2025 https://cityofpaloalto.primegov.com/api/compilemeetingattachmenthistory/historyattachment/?historyId=0b323408-c8f5-492c-9868- 673fa312763c Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 2  Packet Pg. 29 of 445  several factors including marginal cost of energy, distribution system capacity and peak demand, greenhouse gas intensity of market energy, and best practices in ratemaking. 1. Marginal cost of energy 2. Distribution system capacity and peak demand 3. Greenhouse gas intensity of market energy 4. Best practices in ratemaking Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 3  Packet Pg. 30 of 445  intensities, and the timing of both the distribution system peak and residential class peak demand. Table 1: FY 2026 Rates for E-1 and E-1 TOU Commodity Distribution Public Benefits Total E-1 TOU Rate Schedule – Proposed in this Staff Report, effective date January 1, 2026 E-1 TOU Volumetric Rate, $/kWh (No Baseline) Summer: June 1 – September 30 Peak: 4pm to 9pm 0.23354 0.09351 0.00604 0.33309 Off-Peak: 9pm to 9am, 3pm to 4pm 0.08249 0.09351 0.00604 0.18204 Super Off-Peak: 9am to 3pm 0.06690 0.09351 0.00604 0.16645 Winter: October 1 – May 31 Peak: 4pm to 9pm 0.16705 0.09351 0.00604 0.26660 Off-Peak: 9pm to 9am, 3pm to 4pm 0.11033 0.09351 0.00604 0.20988 Super Off-Peak: 9am to 3pm 0.07835 0.09351 0.00604 0.17790 E-1 TOU Customer Charge Customer Charge, $/month 5.15 E-1 Rate Schedule – Effective date July 1, 2025 E-1 Volumetric Rate, $/kWh (Baseline at 450 kWh) E-1 Tier 1 (up to 450 kWh)0.10373 0.09593 0.00604 0.20570 E-1 Tier 2 (over 450 kWh)0.13372 0.08968 0.00604 0.22944 E-1 TOU and E-1 Customer Charge Customer Charge, $/month 5.15 Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 4  Packet Pg. 31 of 445  Figure 1: E-1 (Tier 1 and Tier 2) and Summer E-1 TOU Volumetric Rates for FY 2026 Customers electing the E-1 TOU rate plan must remain on the plan for a minimum of six months. After six months, E-1 TOU customers may request a change to any applicable rate schedule; however, once a customer switches to a rate schedule other than E-1 TOU, they cannot re-elect E-TOU for the next 12 billing cycles. Other utilities have similar restrictions regarding customers switching between rate plans7. For Palo Alto, six months is a reasonable balance between offering flexibility to customers and protecting the utility from customers switching rate plans frequently based upon which season the rate plan benefits the customer, thereby generating additional administration for the utility. 7 This proposed rule is slightly different from that implemented by California’s three largest electric utilities. For PG&E, customers may request a rate plan change up to two times in a rolling 12-month period; however, once a customer makes the 2nd rate change, they will have to remain on that plan for the next 12 billing cycles. For Southern California Edison and San Diego Gas & Electric Company, customers switching to TOU rate will not be able to make another switch for a full 12 months. Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 5  Packet Pg. 32 of 445  Net Energy Metering (NEM) customers9 will not be eligible to opt-in to the Residential TOU rate plan due to existing constraints in the billing system. Staff is working to address these constraints. Implementation Plan FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT 9 NEM customers are those who receive compensation for the energy generated by photovoltaic systems installed at their residences. Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 6  Packet Pg. 33 of 445  Finance Committee ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 7  Packet Pg. 34 of 445  * NOT YET APPROVED * Attachment A 1 027082825 Resolution No. ____ Resolution of the Council of the City of Palo Alto Approving Utility Rate Schedule E-1 TOU (Residential Electric Time of Use Service) R E C I T A L S A. Each year the City of Palo Alto (“City”) adopts Financial Forecasts or Plans for its utilities, to ensure adequate revenue to fund operations with the goal of providing safe, reliable, and sustainable utility services at cost-based rates. Council adopted the FY 2026 Electric Financial Forecast on June 16, 2025.1 B. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and charges. C. On September 15, 2025, at a noticed public hearing, the City Council heard and approved the proposed optional electric residential time-of use rates available for qualified residents. The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-1 TOU (Residential Electric Time of Use Service) shall become effective January 1, 2026; SECTION 2. The Council finds that the revenue derived from the adoption of this resolution shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. SECTION 3. The Council finds that the fees and charges adopted by this resolution are charges imposed for a specific government service or product provided directly to the payor that are not provided to those not charged, and do not exceed the reasonable costs to the City of providing the service or product. SECTION 4. The Council finds that changing electric rates to introduce an optional Residential Time of Use rate is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and CEQA Guidelines Sec. 15273(a). After reviewing the staff report and all attachments presented to Council, the Council incorporates 1 https://www.paloalto.gov/files/assets/public/v/2/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2025/june-16/rates-attachments/finalized-attachment-d-exhibit-1-fy26-electric-utility-financial- forecast-and-cip-detail.pdf Item 2 Attachment A - Resolution        Item 2: Staff Report Pg. 8  Packet Pg. 35 of 445  * NOT YET APPROVED * Attachment A 2 027082825 these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: Assistant City Attorney Director of Administrative Services Item 2 Attachment A - Resolution        Item 2: Staff Report Pg. 9  Packet Pg. 36 of 445  RESIDENTIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-1 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Sheet No E-1-TOU-1 Effective 1-1-2026 A. APPLICABILITY: This voluntary Rate Schedule applies to separately metered single-family residential dwellings receiving Electric Service from the City of Palo Alto Utilities (CPAU) who have an Advanced Metering Infrastructure meter installed. This Rate Schedule is not available to Net Energy Metered (NEM) customers and is provided at the sole discretion of CPAU. This rate schedule applies everywhere the City of Palo Alto provides Electric Service. Per kilowatt-hour (per kWh)Commodity Distribution Public Benefits Total Summer Period Energy Charge Peak $ 0.23354 $ 0.09351 $ 0.00604 $ 0.33309 Off-Peak 0.08249 0.09351 0.00604 0.18204 Super Off-Peak 0.06690 0.09351 0.00604 0.16645 Winter Period Energy Charge Peak $ 0.16705 $ 0.09351 $ 0.00604 $ 0.26660 Off-Peak 0.11033 0.09351 0.00604 0.20988 Super Off-Peak 0.07835 0.09351 0.00604 0.17790 Customer Charge ($/month)5.15 The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. Item 2 Attachment B - Rate Schedule E-1 TOU        Item 2: Staff Report Pg. 10  Packet Pg. 37 of 445  RESIDENTIAL ELECTRIC TIME OF USE SERVICE UTILITY RATE SCHEDULE E-1 TOU CITY OF PALO ALTO UTILITIES Issued by the City Council Sheet No E-1-TOU-2 Effective 1-1-2026 2. Definition of Seasonal Periods Summer Period: Service from June 1 to September 30 Winter Period: Service from October 1 to May 31 SEASONAL RATE CHANGES: When the Billing Period includes use in both Summer and Winter periods, usage will be prorated based on the number of days in each seasonal period, and the Charges based on the applicable rates therein. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 3. Definition of Time Periods Peak: 4:00 p.m. to 9:00 p.m. Every day Off-Peak: 9:00 p.m. to 9:00 a.m. Every day 3:00 p.m. to 4:00 p.m. Super Off-Peak: 9:00 a.m. to 3:00 p.m. Every day 4. Changing Rate Schedules Customers electing to be served under E-1 TOU must remain on said Rate Schedule for a minimum of 6 months. Should the Customer so wish, at the end of 6 months, the Customer may request a Rate Schedule change to any applicable City of Palo Alto full-service Rate Schedule as is suitable to their kilowatt-hour usage. However, once a customer elects a rate other than E-1 TOU, they cannot re-elect E-TOU for the next 12 billing cycles. {End} Item 2 Attachment B - Rate Schedule E-1 TOU        Item 2: Staff Report Pg. 11  Packet Pg. 38 of 445  16701 NE 80th Street Suite 102 Redmond, WA 98052 425-889-2700 Fax 866-611-3791 www.gdsassociates.com MEMORANDUM TO Lisa Bilir FROM Amber Gschwend DATE April 1, 2025 RE Electric Time-of-Use Rate Design for E-1: Residential Customer Class As part of the electric cost of service study, a rate design analysis is prepared to support the implementation of time of use (TOU) rates for the E-1 class. It is estimated that over 90% of residential customers will have Advanced Metering Infrastructure (AMI) installed by July 1, 2025, and optional TOU rates could be offered at that time. The proposed rate developed in this memo would be implemented on a voluntary basis. The bill impacts provided at the end of the analysis show that consumers with higher use could benefit from the program. Bills at any usage level can be reduced with changes in behavior. TOU RATE DESIGN BACKGROUND Time-of-use rate design has many benefits including appropriate price signaling to customers and the potential for customers to modify electric use to fall in periods of lower overall system costs, to reduce bills and utility power costs. Investor-owned utilities (IOUs) in California have defaulted residential customers to TOU rates, with the exception of low-income program customers.1 As a voluntary program, it is expected that customers who opt into the TOU rate would be those customers who can modify electric consumption timing, and these customers may be more aware of their energy use profiles in general. Customers with electric vehicles (EV) can benefit by choosing to charge vehicles during lower energy cost periods. Under the current tiered rate, electric vehicle charging would likely fall under the higher Tier 2 electric rate, based on higher household consumption. Therefore, the TOU rate offers the opportunity for EV owners to reduce electric bills without increasing costs for other customers. Additionally, when combined with demand response programs, TOU rates could also incentivize customers to purchase programmable appliance controls (e.g., battery energy storage systems, water heaters) further allowing customers to reduce electric usage during high-priced periods. TOU program participation in the United States, when voluntary, typically ranges from 1% to 10% of the total number of eligible households.2 As of 2023, approximately one in three residential customers in Palo Alto own EVs, therefore, the adoption rate in Palo Alto is likely to be higher. If Palo Alto decides to implement TOU as the default option, while allowing customers to opt back to a tiered rate option, TOU program participation would likely increase to 75-90%. Alternatively, the City may require TOU rate design for all customers in the class, resulting in 100% participation. 1 Pirro, Michael. The Evolution and Challenges of Time-of-Use Rate Designs. GridX. August 29, 2024. The Evolution and Challenges of Time-of-Use Rate Designs. 2 Eligible households are those with appropriate meeting infrastructure or some other factor as determined by the utility. Item 2 Attachment C - COSA Study’s E-1 TOU Supplement        Item 2: Staff Report Pg. 12  Packet Pg. 39 of 445  M E MO R AN D U M Electric TOU Rate Design E-1 2 RECOMMENDED PALO ALTO RESIDENTIAL TOU PROGRAM A voluntary E-1 TOU program will provide useful information to the City. Peak demand reduction estimates can be made by comparing E-1 TOU participant demands to standard E-1 class demands over the same period. This information will help the City plan for future program roll-out design as well as reduce its future power costs. Based on PG&E’s program, it is expected that peak demand reduction on the order of 3-6% could be achieved through TOU rate design.3 Note: The residential customer share of Palo Alto’s overall peak demand is estimated at 12%, therefore, a reduction in residential class peak of 3- 6% results in an overall system peak reduction of 0.4 to 0.7%. A voluntary program will also help the City determine with greater certainty the impact of TOU rate design on utility revenues and expenses. As customers modify their behavior, it is expected that the revenue collected will decrease and that power supply expenses will also decrease. It is recommended that the TOU program revenues be analyzed annually, and retail rates updated so that the utility remains financially stable. This initial rate design proposal considers the recovery of fixed and variable costs by including fixed cost recovery in rate components that do not vary depending on the time of day energy is used. This design mitigates potential impacts to revenue collection resulting from changed behavior from TOU rate implementation. Table 1 below summarizes the recommended TOU rate design methodology. The balance of the memo describes the data and results of the analysis. TABLE 1: RECOMMENDED TOU RATE DESIGN METHODOLOGY Rate Schedule Current Rate Design Recommended Rate Methodology Residential Electric Service E-1: Not Time of Use Inclining Rate with Two Tiers Baseline Use (Tier 1) is 450 kWh/month Higher Use (Tier 2) is over 450 kWh/month E-1 TOU: Billing Periods Based on Differential in Marginal Cost, Distribution System Capacity and Peak Demand, Greenhouse Gas Intensity, and Best Practices in Rate Design Commodity Rate Based on Marginal Cost Optional Rate Plan TOU RATES FOR NET ENERGY METERED (NEM) CUSTOMERS Due to technical hurdles associated with the electric billing system, CPAU is currently unable to implement TOU rates for Net Energy Metered (NEM1 and NEM2)customers, who have energy generation and/or storage capacity from solar panels and batteries. When CPAU overcomes NEM2 billing system hurdles, TOU NEM2 will be developed. 3 Rate design and season impacts the peak demand reduction estimates. Pacific Gas and Electric (PG&E) study authors note that peak demand impacts may diminish over time. Reference: Christensen Associates. 2023 Load Impact Evaluation of Pacific Gas and Electric Company’s Residential Time-of-Use Rates Ex Post and Ex-Ante Report. CALMAC Study ID PGE0496. April 1, 2024. https://www.calmac.org/publications/2._PGE_2023_Res_TOU_Rpt_PUBLIC.pdf Item 2 Attachment C - COSA Study’s E-1 TOU Supplement        Item 2: Staff Report Pg. 13  Packet Pg. 40 of 445  M E MO R AN D U M Electric TOU Rate Design E-1 3 REVENUE REQUIREMENT The rate level for E-1 TOU is based on the FY2026 budget. The FY2026 budget is the FY2025 budget plus a 1% increase to power supply expenses, and an 11% increase for distribution expenses for an average adjustment of 5% overall. Therefore, the proposed rates are equal to the FY2025 cost of service analysis plus 5%. For E-1, the total revenue target for FY2026 is $29.4 million compared with $27.9 million for FY2025. This is equivalent to 17% of the total electric utility retail revenue target of $172.9 million. TOU COST JUSTIFICATION TOU rate design is recommended to promote the efficient use of electricity by providing more accurate cost-based pricing. 1. TOU rates are based on the marginal cost of electrical energy and electrical capacity at the time of usage, reflecting accurate market price signals. 2. TOU rate design may lower the impact of increased EV charging on distribution feeder and transformer loadings, by providing customer incentives to reduce or shift energy use away from higher-priced periods. 3. TOU rates will provide customers with the opportunity to take advantage of lower-cost time periods for EV charging or other electric use. 4. TOU rates support electrification by not penalizing high energy use if it occurs during lower market priced periods. Typically, the goal of TOU rate design is to provide more accurate cost-based pricing to retail customers. In addition to this goal, TOU may also be used as a program to reduce overall power supply costs to the utility and, to the extent possible, lower the peak load on the distribution system infrastructure. These lowered costs are then passed to consumers through updated rate studies. A reduction in power costs may be realized if customers conserve energy during high-priced periods, or if customers shift their energy use to lower-priced periods. Similarly, reducing the peak loading of the distribution system will lower the need for system upgrades and will also result in lower system energy losses. DETERMINATION OF APPROPRIATE TOU PERIODS As noted in Table 1, TOU periods are designed with consideration of several factors including: 1. Marginal cost of energy 2. Distribution system capacity and peak demand 3. Greenhouse gas intensity of market energy 4. Best practices in ratemaking. Each of these considerations is described below. Marginal Cost of Energy The primary goal of the rate design is to accurately reflect the cost of service depending on the time of day energy is used. Typically, higher-priced energy results from the combination of high electricity demands and constrained resource output, which occurs after the sun sets when lower-cost solar resources are no longer producing energy. The marginal cost of energy for the City is considered to be the hourly market prices at the NP15 (North of Path 15) trading hub, adjusted for the Palo Alto service area location. Hourly prices are commonly referred to as Default Load Aggregation Point (DLAP). The NP15 trading hub is the closest wholesale market transacting location. This pricing data is utilized in other areas Item 2 Attachment C - COSA Study’s E-1 TOU Supplement        Item 2: Staff Report Pg. 14  Packet Pg. 41 of 445  M E MO R AN D U M Electric TOU Rate Design E-1 4 of the City’s utility planning and ratemaking and is the appropriate marginal cost metric for electric TOU rate design. Because of the large penetration of solar resources in the California markets, the highest priced periods typically occur in the evening. This is demonstrated in the average hourly market pricing data shown in Figure 1.4 These market prices are the marginal cost of electricity. In case of resource production surpluses or shortages, the City would sell or purchase energy at these prices. Figure 1 illustrates the average hourly market pricing for the 3-year period August 2021-July 2024. This period is the most relevant to the analysis since it is the most recent data available. While the natural gas shortage in winter 2023 inflated pricing in that period, removing that data from the analysis did not result in significant differences. This is because the shape of the pricing curves is more important than the pricing levels. Figure 1 shows three periods for pricing. The red shaded period (peak) is the highest priced period between 4 pm and 9 pm, averaging $95/MWh annually. The lowest priced period is between 9 am and 3 pm daily at $49/MWh on average (super off-peak). The average price for the remaining hours (off-peak) is $65/MWh. The relative prices in these three periods are used to determine commodity rates. FIGURE 1: AVERAGE HOURLY MARKET PRICES: 8/2021-7/2024 The recommended rate design has the same pricing periods for winter and summer seasons. Keeping the time of day pricing periods the same year-round is simpler from the customer perspective and follows Bonbright’s criteria of desirable rate structure where he emphasizes simplicity and understandability of 4 Average hourly prices for NP15 (DLAP Palo Alto), August 2021-July 2024. $0 $20 $40 $60 $80 $100 $120 Hour Beginning Off Peak Super Off Peak Peak Item 2 Attachment C - COSA Study’s E-1 TOU Supplement        Item 2: Staff Report Pg. 15  Packet Pg. 42 of 445  M E MO R AN D U M Electric TOU Rate Design E-1 5 rate design.5 A more complicated rate design with multiple TOU periods would more precisely reflect marginal costs, but it would also be more difficult for customer understanding and implementation. For this reason, a simpler rate design is recommended. Distribution System Capacity and Peak Demand The second consideration for the TOU periods is the peak at the distribution system level. This peak is the maximum peak achieved when combining customer electric demands. A peak can be analyzed in various ways such as system total (all City loads) or a subset of customers such as those being served from a particular asset (substation, feeder, transformer). The peak on the distribution system drives distribution system investments. Therefore, managing peak demands on the system can defer or avoid investments in system expansion. Typically, the distribution system peak coincides with the timing of higher-priced electricity. To test this, the 12 monthly peaks (maximum demand) for the City’s entire system were analyzed. The three highest monthly peaks on the system occur within the 4 pm to 9 pm time period. While the system peaks during this time period, each class of customer contributes to that peak differently. Class system peaks help define the capacity requirements across the distribution system. If the residential class peak were to occur during a low marginal cost period for energy, the recommended TOU rate design could result in increased distribution system costs. Shifting loads toward the residential class peak could result in an increase to the distribution system capacity needs. To ensure that the recommended TOU rate periods do not place undue upgrade costs on the distribution system, EES analyzed residential class load profile data. At the time of this analysis, the City does not have hourly load profile data available for its residential class. The City is currently installing AMI, which will provide usage data for future cost analysis and rate making. Because hourly meter data is unavailable, EES evaluated hourly usage data for substation feeders: Hopkins feeder 5 (HO5) and Hopkins feeder 7 (HO7). These feeders serve a total of 1,208 customers. Of these, 1,200 customers are residential. Based on the customer count data, the hourly data from these feeders should be a good approximation for residential load profiles for the City of Palo Alto. To further test this theory, the hourly data from these feeders was compared with PG&E residential load profiles for PG&E’s baseline territory “T.” This territory is adjacent to the City of Palo Alto and similar in climate. The comparison further validates that the hourly Palo Alto feeder data is appropriate Palo Alto residential TOU rate design. Figure 2 compares the average hourly load shape for the 12 months beginning September 2022 for both Hopkins feeders, and a similar-climate load shape from PG&E dynamic load profile data. The average is calculated by averaging electric demand over the entire year for each hour ending (1-24). Figure 2 shows normalized kW which is equal to kW in each hour divided by the average. Normalizing each curve makes the curves comparable even if the data sets have different means. 5 Bonbright, James C. Principles of Public Utility Rates. Columbia University Press, 1961 (Reprinted 2005). Page 291. powellgoldstein-bonbright-principlesofpublicutilityrates-1960-10-10.pdf Item 2 Attachment C - COSA Study’s E-1 TOU Supplement        Item 2: Staff Report Pg. 16  Packet Pg. 43 of 445  M E MO R AN D U M Electric TOU Rate Design E-1 6 FIGURE 2: RESIDENTIAL HOURLY LOAD PROFILE AVERAGE: 9/2022-8/2023 Using the feeder data, an analysis of monthly peaks indicated that the 4 pm to 9 pm period captures the two maximum feeder peaks (August and September for HO5 and December and September for HO7). This is also supported in Figure 2 where the average daily peak occurs in the same window. Therefore, both the system and feeder peak analyses support an on-peak period in the later afternoon/evening. Palo Alto’s overall system peak, across all customer classes also occurs between 4 pm and 9 pm in the highest 9 monthly peaks. This also supports setting the peak period between 4 pm and 9 pm. Greenhouse Gas (GHG) Content The third consideration for TOU periods is the carbon content of market purchases during lower-cost periods. While not perfectly correlated, marginal cost, system peak demands, and high GHG content are all highest during the same evening period. Figure 3, on the next page, shows the average hourly emission intensity by month for energy transactions located within the management area of the California Independent System Operator (CAISO). Emissions data are represented as metric tons (MT) of carbon dioxide equivalent (CO2e) per megawatt hour (MWh) of electricity. The highest emission intensities are between 7 pm and 7 am, when solar resources are not generating. The emission intensity data supports a third TOU period during the day that represents the lower costs associated with both the low GHG intensity and low marginal cost. 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 PG&E HO5 2022 HO7 2022 Hour Beginning Item 2 Attachment C - COSA Study’s E-1 TOU Supplement        Item 2: Staff Report Pg. 17  Packet Pg. 44 of 445  Item 2 Attachment C - COSA Study’s E-1 TOU Supplement        Item 2: Staff Report Pg. 18  Packet Pg. 45 of 445  M E MO R AN D U M Electric TOU Rate Design E-1 8 Best Practices The last consideration for TOU periods is based on ratemaking best practices. First, it has been shown that consumers are more able to shift energy use to lower priced periods when the high-priced period is shorter in duration. As such, there is a trade-off in cost-based rates between peak usage pricing that is significantly higher than off peak but for a shorter period versus smaller price differentials over a longer period. The recommended peak period is from 4 pm to 9 pm. This 5-hour period captures high marginal energy costs, high average GHG intensity, and the timing of both the distribution system peak and residential class peak demand. TOU RATE RECOMMENDATIONS It is recommended that TOU rates be calculated for two seasons: summer and winter. The recommended summer season is from June 1 through September 30. This choice of season is based on the annual system peak typically in August or September and the local capacity requirement (determined by the annual peak). Additionally, the seasonal rate design is necessary to pass through the differences in marginal costs between seasons. In particular, the months of June through September are the peak cooling months where the impact of solar on marginal costs is slightly less compared to winter. The recommended seasonal definition results in a larger difference in pricing during summer hours as demonstrated by the higher peak and lower troughs in Figure 4. Winter hours are priced closer together. FIGURE 4: AVERAGE HOURLY MARKET PRICES BY SEASON: 8/2021-7/2024 $0 $20 $40 $60 $80 $100 $120 $140 $160 Summer June-Sept Winter Oct-May Hour Beginning Off Peak Super Off Peak Peak Item 2 Attachment C - COSA Study’s E-1 TOU Supplement        Item 2: Staff Report Pg. 19  Packet Pg. 46 of 445  M E MO R AN D U M Electric TOU Rate Design E-1 9 Based on the above analysis, the following TOU periods are recommended: TABLE 2: RECOMMENDED TOU RATE PERIODS Time of Day Summer: June 1 – September 30 and Winter: October 1 – May 31 Peak 4 pm to 9 pm Off-Peak 9 pm to 9 am and 3 pm to 4 pm Super Off-Peak 9 am to 3 pm Based on these TOU periods, marginal cost data, and the seasonal rate period, the recommended rate differentials are developed. During the summer season, peak period prices average 85% higher than off- peak prices. In winter, October 1 through May 31, the peak period prices average 23% higher than off- peak prices. Super off-peak prices coincide with the time of day with the lowest marginal cost and lowest greenhouse gas emission intensity. Prices during super off-peak periods during the summer are 19% lower than off-peak summer prices and prices during super off-peak periods during the winter are 29% lower than winter off-peak prices. Table 3 summarizes the marginal cost data for the 3-year period analyzed, August 2021-July 2024. This data was also analyzed by excluding the high winter prices in 2023 caused by natural gas shortages. This event was unusual; however, the resulting price differentials between the recommended TOU periods were not significantly different when the event is excluded. Note that the marginal cost is not used directly for rate-setting. The marginal cost levels are adjusted to reflect the utility’s actual all-in power costs; however, the ratio of peak, off-peak, and super off-peak prices is maintained.6 By maintaining the relative cost of power, the resulting rates reflect the marginal cost attributes while collecting the power supply costs allocated to residential customers in the cost of service study. 6 This methodology differs from the Export Electricity Compensation rate (EEC) used to credit excess generation value to Net Energy Metering (NEM) customers. The EEC rate considers the marginal cost of energy plus other costs avoided when customers generate electricity locally. Item 2 Attachment C - COSA Study’s E-1 TOU Supplement        Item 2: Staff Report Pg. 20  Packet Pg. 47 of 445  M E MO R AN D U M Electric TOU Rate Design E-1 10 TABLE 3: TOU MARGINAL COST: COMMODITY Average DLAP1 Price $/MWh Difference from Seasonal Off Peak Price Summer: June 1 – September 30 Peak: 4 pm to 9 pm $99.98 + 85% Off-Peak: 9 pm to 9 am and 3 pm to 4 pm $53.96 0% Super Off-Peak: 9 am to 3 pm $43.76 -19% Winter: October 1 - May 31 Peak: 4 pm to 9 pm $88.49 +23% Off-Peak: 9 pm to 9 am and 3 pm to 4 pm $72.17 0% Super Off-Peak: 9 am to 3 pm $51.25 -29% 1. DLAP or Default Load Aggregation Point is the industry name for hourly wholesale electricity prices for the relevant trading point. In this case, the PG&E delivery point is the appropriate trading node. The commodity rates for E-1 TOU are developed such that the pricing differentials in Table 3 are maintained for the energy-related portion of the rate. The commodity costs that are demand-related are added to the peak commodity rates. Demand-related commodity costs are spread evenly across summer and winter seasons and applied only to peak commodity rates. Finally, because local capacity costs are based on peak demand, 72% of these costs occur in summer, while 28% occur in the winter and these costs are correspondingly included in the summer and winter volumetric rates. Table 4 summarizes the cost components in each TOU commodity rate. TABLE 4: TOU RATE DESIGN COST COMPONENTS Commodity Cost Component Energy Related Demand Related Summer Peak 187% of Off Peak Price 72% of Local Capacity Costs Summer Demand Costs Summer Off-Peak Marginal Cost Scaled Based on Embedded Power Costs (Calculated in COSA) None Summer Super-Off Peak 84% of Off Peak Price None Winter Peak 121% of Off Peak Price 28% of Local Capacity Costs Winter Demand Costs Winter Off-Peak Marginal Cost Scaled Based on Embedded Power Costs (Calculated in COSA) None Winter Super Off-Peak 73% of Off Peak Price None LOAD CHARACTERISTICS The billing determinants for each TOU pricing period are estimated from the load profile data obtained from the HO5 and HO7 feeders. Table 5 summarizes the estimated share of annual energy within each TOU period. For the average customer using 450 kWh per month (5,400 kWh/year), 31.6% or 1,706 kWh are consumed in the winter off peak period. Item 2 Attachment C - COSA Study’s E-1 TOU Supplement        Item 2: Staff Report Pg. 21  Packet Pg. 48 of 445  M E MO R AN D U M Electric TOU Rate Design E-1 11 TABLE 5: RESIDENTIAL LOAD SHARE BY TOU PERIOD Share of Annual Energy Summer: June 1 – September 30 Peak: 4 pm to 9 pm 8.0% Off-Peak: 9 pm to 9 am and 3 pm to 4 pm 9.2% Super Off-Peak: 9 am to 3 pm 14.2% Winter: October 1 - May 31 Peak: 4 pm to 9 pm 15.7% Off-Peak: 9 pm to 9 am and 3 pm to 4 pm 31.6% Super Off-Peak: 9 am to 3 pm 21.3% Table 6 compares the recommended E-1 TOU rate with the standard E-1 rate adjusted for FY2026. The commodity rates are developed by scaling the marginal costs for the TOU periods (Table 3) so that when combined with the billing determinants resulting from Table 5, the revenue collected equals the commodity revenue requirement. The fixed customer charge is the same as the recommended fixed customer charge for the E-1 class. The distribution costs for FY2026 are estimated at $14.1 million (11% increase from FY2025 distribution costs). After an 11% increase in the customer charge, the remaining distribution costs are $12.4 million. This translates to $0.09351/kWh. This distribution rate is the same between E-1 and E-1-TOU.7 The Public Benefits Charge (PBC) is also the same across time periods and across the Tiered E-1 rate compared to the E-1-TOU rate. TABLE 6: RECOMMENDED RESIDENTIAL TOU RATE FY2026 (PRICES PER KWH UNLESS OTHERWISE STATED) Commodity Distribution PBC Total E-1 Customer Charge, $/month $5.15 Tier 1 (up to 450 kWh)$0.10373 $0.09593 $0.00604 $0.20569 Tier 2 (> 450 kWh)$0.13372 $0.08968 $0.00604 $0.22944 E-1-TOU Customer Charge, $/month $5.15 Summer (June 1 to Sept 30) Peak: 4 pm to 9 pm $0.23354 $0.09351 $0.00604 $0.33309 Off Peak: 9 pm to 9 am and 3 pm to 4 pm $0.08249 $0.09351 $0.00604 $0.18204 Super Off Peak: 9 am to 3 pm $0.06690 $0.09351 $0.00604 $0.16645 Winter (Oct 1 to May 31) Peak: 4 pm to 9 pm $0.16705 $0.09351 $0.00604 $0.26660 Off Peak: 9 pm to 9 am and 3 pm to 4 pm $0.11033 $0.09351 $0.00604 $0.20988 Super Off Peak: 9 am to 3 pm $0.07835 $0.09351 $0.00604 $0.17790 7 The average distribution rate of $0.09351/kWh is required to recover the $12.4 million in residential class distribution system costs. The Standard E-1 Rate is based on a tiered rate design which results in the same collection of $12.4 million in revenues. Item 2 Attachment C - COSA Study’s E-1 TOU Supplement        Item 2: Staff Report Pg. 22  Packet Pg. 49 of 445  M E MO R AN D U M Electric TOU Rate Design E-1 12 The FY2026 average annual volumetric rate for both for E-1 and E-1 TOU is $0.21486/kWh. If all residential customers select the E-1 TOU rate plan, and did not modify behavior, the revenue collected would total $29.4 million. BILL IMPACTS The bill impacts from switching from E-1 to E-1-TOU will depend on the monthly electric use. Higher usage in any month will make the TOU rate more attractive to customers. Average monthly use is estimated at 450 kWh, the Tier 1 baseline. Table 7 compares residential monthly bills under two rate plans at the same average monthly use. In every month, the E-1 rate results in a lower bill. The annual difference is $37.96. This suggests that customers near the average use, and with a usage profile consistent with the feeder data, should prefer to stay on the E-1 rate unless they plan to change their usage patterns. TABLE 7: BILL IMPACTS: AVERAGE USE Month Average Use kWh Bill: E-1-TOU Bill: E-1 Difference (E-1 TOU bill – E-1 bill) 1 408 $92.05 $89.07 $2.98 2 440 $98.38 $95.66 $2.72 3 385 $86.90 $84.34 $2.56 4 388 $87.81 $84.96 $2.85 5 436 $98.16 $94.83 $3.33 6 438 $98.59 $95.24 $3.35 7 619 $138.83 $136.49 $2.34 8 523 $119.46 $114.46 $5.00 9 523 $117.50 $114.23 $3.27 10 418 $94.52 $91.13 $3.39 11 407 $91.80 $88.87 $2.93 12 417 $93.96 $90.72 $3.24 Total $1,217.96 $1,180.00 $37.96 Table 8 shows the same analysis for the case where 200 kWh per month is added to the 450 kWh/month usage. It is assumed that this use is due to electrification (such as electric vehicle charging). We assume a 50/50 split between off-peak and super off-peak period usage for the additional kWh. Table 8 demonstrates that for EV charging timed to avoid the peak cost period, the E-1-TOU rate is beneficial, saving customers approximately $55 per year. Item 2 Attachment C - COSA Study’s E-1 TOU Supplement        Item 2: Staff Report Pg. 23  Packet Pg. 50 of 445  M E MO R AN D U M Electric TOU Rate Design E-1 13 TABLE 8: BILL IMPACTS: AVERAGE USE PLUS 200 KWH EV CHARGING Month Average Use kWh Bill: E-1-TOU Bill: E-1 Difference 1 653 $130.83 $133.96 -$3.14 2 689 $137.16 $141.31 -$4.14 3 627 $125.68 $128.69 -$3.01 4 631 $126.59 $129.37 -$2.78 5 684 $136.94 $140.39 -$3.45 6 687 $133.44 $140.85 -$7.41 7 888 $173.68 $182.38 -$8.69 8 781 $154.31 $160.35 -$6.04 9 781 $152.35 $160.12 -$7.77 10 664 $133.30 $136.26 -$2.96 11 652 $130.58 $133.73 -$3.15 12 663 $132.74 $135.80 -$3.06 Total $1,667.59 $1,723.20 -$55.61 Finally, Table 9 shows a range of potential bill impacts for low, average, and high levels of monthly kWh use. Even with no changes in behavior to avoid peak cost periods, residential customers with higher use could potentially reduce their bills by switching to the TOU rate option. The analysis assumes that customer usage profiles are consistent with the feeder data. Refer back to Table 5 for the share of annual energy consumption in each seasonal TOU period. This profile is used to calculate monthly bills at different levels of consumption ranging from 200 kWh/month to 1,600 kWh/month. TABLE 9: BILL IMPACTS: LOW, AVERAGE, AND HIGH USAGE LEVELS Bill: E-1 TOU Bill: E-1 Difference 200 kWh $47.96 $46.29 $1.68 450 kWh (Tier 1 Baseline)$101.48 $97.71 $3.77 600 kWh $133.59 $132.13 $1.46 800 kWh $176.41 $178.02 -$1.61 1,600 kWh $347.66 $361.57 -$13.91 Item 2 Attachment C - COSA Study’s E-1 TOU Supplement        Item 2: Staff Report Pg. 24  Packet Pg. 51 of 445  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Utilities Meeting Date: September 15, 2025 Report #:2507-4958 TITLE Finance Committee Recommendation for City Council to Direct Staff to Follow the Reasonable- Cost Analysis Required by Proposition 26 for the Gas Cost of Service Analysis and Collaborate with the Utilities Advisory Commission to Develop Revised Gas Rate Schedules Effective January 2026, Based on Five Design Principles; CEQA – Not a Project RECOMMENDATION The Finance Committee recommends that the Council direct staff to follow the reasonable-cost analysis required by Proposition 26, and that staff collaborate with the UAC to develop revised gas rates effective January 2026, based on the following design principles: 1. Rates must be based on the reasonable cost to serve customers. This is the overriding principle for the cost of service analysis (COSA); all other rate design considerations are subsidiary to this basic premise. 2. The COSA should involve a review of all existing rate schedules for applicability in the COSA. 3. The impact of any proposed changes on low-income customers should be evaluated in alignment with state law, including, without limitation, Public Utilities Code sections 890 and 898. 4. Determine the proper allocation of fixed and variable costs and how those can be implemented in various rate designs. 5. Review non-rate revenue sources that may be available for rate discounts or rebates. EXECUTIVE SUMMARY Article XIII C of California Constitution (often referred to as Proposition 26) requires voter approval for municipal electric and gas rates that exceed the reasonable costs to the utility of providing service. The City Council can adopt cost-based utility rates without voter approval. Public agencies rely on ratemaking consultants to determine the costs of providing service and to design rates that accurately recover those costs; this is referred to as a “cost of service analysis”, or COSA. Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 1  Packet Pg. 52 of 445  As outlined during the spring 2025 discussion, one step of a routine cost of service analysis includes a kick-off process affirming any guiding principles for the study, while always ensuring adherence to California’s Proposition 26. This action forwards the Finance Committee’s recommendation that Council direct staff to follow the reasonable-cost analysis required by Proposition 26, and that staff collaborate with the UAC to recommend revised gas rates effective January 2026, based on the following design principles: BACKGROUND 1 A rate set at a level “which does not exceed the reasonable costs to the local government of providing the service”2 is an exception to the voter approval requirement and can be approved by Council. The City bears the burden to prove that a rate is not a tax, the amount is no more than necessary to cover the reasonable costs of providing service, and the manner in which those costs are allocated to ratepayers bears a fair or reasonable relationship to the ratepayer’s burdens on, or benefits received from, the governmental activity.3 1 CA. Const. Article XIII C(1)(e). 2 CA. Const. Article XIII C(1)(e)(2). 3 CA. Const. Article XIII C(1)(e). Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 2  Packet Pg. 53 of 445  ANALYSIS On July 9, 2025, staff proposed to the UAC7 that the UAC recommend that Council accept design principles that would apply to both the City’s gas and electric rates8. Further details on these Design Principles are available in the UAC staff report 2505-4722.9 As an additional reference, the City Council approved prior gas COSA guidelines on November 14, 2016 (Staff Report 741610). During its July meeting, the UAC considered design principles which included some policy preferences to guide staff and the City’s ratemaking consultants on future gas and electric COSAs in alignment with California’s Constitutional requirements. The Commission considered whether revising them could provide clearer guidance for staff and the ratemaking consultant in developing the new 2026 Gas COSA. During the discussion, staff emphasized that the primary and overriding guiding principle is Proposition 26, which requires that rates be based on cost and does not address other policy considerations. Courts look to constitutional requirements when a public agency’s rates are challenged and have held that rates which incentivize policy choices must remain cost-based. The UAC explored crafting an additional set of principles, but ultimately as a body decided on reliance on Proposition 26. The UAC voted 6-1 to recommend: 1) relying on Proposition 26 as the only design principle for the Gas COSA and 2) forming a UAC subcommittee to work with staff and the ratemaking consultant to develop the 2026 Gas COSA and provide regular report-outs to the full UAC to ultimately support a recommendation to the City Council. On September 2, 2025, the Finance Committee considered the UAC’s recommendation and discussed the design guidelines from 2016 in greater detail as well as the design guidelines proposed by staff in the July report to the UAC. After deliberating the pros and cons of each possible guideline, and receiving guidance from staff and legal counsel, the Finance Committee voted unanimously to recommend that Council direct staff to Support the UAC recommendation to follow the reasonable-cost analysis required by Proposition 26, and that staff collaborate with the UAC to recommend revised gas rates effective January 2026, but added the following design principles: 1. Rates must be based on the reasonable cost to serve customers. This is the overriding principle for the cost of service analysis (COSA); all other rate design considerations are subsidiary to this basic premise. 7 Utilities Advisory Commission Staff Report 2505-4722, July 9, 2025 meeting, Item 3, 8 A different constitutional provision, commonly referred to as Proposition 218, applies to the City’s water, wastewater and refuse rates, which are deemed “property-related fees”. While property-related fees must also be cost-based to avoid the voter approval requirement, the substantive and procedural rules for these fees differ from those applicable to electric and gas rates and are outside the scope of these rate design principles. 9 Utilities Advisory Commission Staff Report 2505-4722, July 9, 2025 meeting, Item 3, 10 City Council Staff Report 7416, November 14, 2016: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutesreports/reports/city-manager-reports- cmrs/year-archive/2016/final-staff-report-id-7416_gas-cost-of-service-and-rate-design-guidelines.pdf Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 3  Packet Pg. 54 of 445  2. The COSA should involve a review of all existing rate schedules for applicability in the COSA. 3. The impact of any proposed changes on low income customers should be evaluated in alignment with state law, including, without limitation, Public Utilities Code sections 890 and 898. 4. Determine the proper allocation of fixed and variable costs and how those can be implemented in various rate designs. 5. Review non-rate revenue sources that may be available for rate discounts or rebates. The Committee expressed appreciation for the UAC work, as well as the dedication of a subcommittee to aid in a deeper dive of the COSA with staff as part of this process. Tentative Timeline & UAC Review When Council directed the UAC to review the 2025 Gas COSA, some Councilmembers expressed an intent to complete the new COSA and implement new gas rates by early 2026. In order to minimize the impact on the project completion date and allow for thorough development and legal review of the proposed gas rates, staff’s estimate the fastest process possible under ideal conditions would reflect the following; actual timing may shift depending on requested analysis: September/October: UAC subcommittee to review (see below for details) and provide report outs to the full UAC verbally November (week 1): UAC review and discuss proposed 2026 Gas COSA study results for recommendation to Finance Committee and City Council November (week 3): Finance Committee review and discuss proposed 2026 Gas COSA study results and rate changes for recommendation to City Council December: City Council review and adoption of final 2026 Gas COSA study results and rate changes including Public Hearing Gas rates effective on or around January 1, 2026 depending on the complexity and timeline necessary to implement rate changes. The use of a UAC subcommittee15 permits a subset comprised of less than a quorum of the UAC to engage in detailed and candid discussion with staff and the City’s ratemaking experts, followed by verbal reports to the full UAC to facilitate discussion and recommendation to Council on the proposed 2026 Gas COSA. During UAC Subcommittee Meetings, the subcommittee reviews draft materials and provides input and feedback to staff and the ratemaking consultant on several key topics. These include the design of fixed and variable customer charges, as well as an analysis of whether to subdivide the current G-2 customer class. This analysis will explore the potential creation of a distinct customer class comprised of multi-family master-metered customers, or other appropriate cost-based reclassifications. 15 A temporary advisory committee composed solely of less than a quorum of the legislative body that serves a limited or single purpose, that is not perpetual, and that will be dissolved once its specific task is completed is not subject to the Brown Act. (Cal. Gov. Code sec. 54952(b).) Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 4  Packet Pg. 55 of 445  FISCAL/RESOURCE IMPACT The work associated with this project will be absorbed using existing staff and contract budgets. Staff may need to push back other rate-related work to later in the fiscal year. If additional subcommittee meetings or other meetings are required, or substantive additional models and analysis is requested during the final stages of drafting the Gas COSA report, the schedule and cost will be impacted. This will mean the effective date of new rates will be later in 2026 and there will be additional costs to the City of working with the expert consultants. The UAC and staff received numerous communications expressing a variety of concerns about the gas utility. Those letters and all of the public letters to the UAC for the July 9, 2025 meeting are available for viewing.17 The Finance Committee reviewed this item on September 2, 2025 and voted unanimously to recommend that Council direct staff to follow the reasonable-cost analysis required by Proposition 26, and that staff collaborate with the UAC to recommend revised gas rates effective January 2026, based on the design principles outlined above. Two members of the public spoke at the Finance Committee meeting on September 2, 2025 and two members of the public wrote a letter to the Finance Committee, each recommending that the City keep the 2016 gas COSA design principles in place for the 2026 Gas COSA with certain modifications. Public review and feedback as part of this next process will be available and advertised through the public review at the UAC, Finance Committee, and City Council. A recommendation that Council direct staff to follow the reasonable-cost analysis required by Proposition 26, and that staff collaborate with the UAC to recommend revised gas rates effective January 2026 based on the five principles described above does not meet the definition of a project, under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment, thus no environmental review is required. : Alan Kurotori, Director of Utilities 17 Link to public letters to the UAC from the July 9, 2025 agenda: http://www.paloalto.gov/files/assets/public/v/2/agendas-minutesreports/agendas-minutes/utilities-advisory- commission/archived-agenda-and-minutes/agendas-and-minutes-2025/07-july/public-letters-touac-7.09.25-v2.pdf Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 5  Packet Pg. 56 of 445  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: City Attorney Meeting Date: September 15, 2025 Report #:2508-5109 TITLE Authorization to Execute Amendment to Legal Services Agreement S25193131 with Diepenbrock Elkin Dauer McCandless to Increase Amount by $1,086,000 for Total Not-to- Exceed Amount of $1,171,000; CEQA Status – Not a Project. RECOMMENDATION Authorize the City Attorney or designee to amend the agreement for claim defense services with the law firm of Diepenbrock Elkin Dauer McCandless (Agreement S25193131) to increase the Agreement amount by $1,086,000 for a total not-to-exceed amount of $1,171,000. BACKGROUND Diepenbrock Elkin Dauer McCandless is a law firm representing cities in a variety of areas, including matters involving public works projects. In October 2024, the City entered into a three-year agreement (S25193131) with Diepenbrock Elkin Dauer McCandless for defense services regarding disputes arising from construction of the Public Safety Building. Staff now seeks authority to increase the Agreement amount by $1,086,000 which will bring the new not to exceed amount to $1,171,000. This amendment is based on estimates for legal representation through and including arbitration of outstanding claims and disputes arising from construction of the Public Safety Building. FISCAL/RESOURCE IMPACT Funding for this amendment will be provided through an adjustment to increase the New Public Safety Building project (PE-15001) in Report #2506-4870, offset by a reduction in the Infrastructure Plan Reserve which sets aside funding for unknown costs related to Infrastructure Plan projects. This action has no impact on the fund balance of the Capital Improvement Fund. Item 4 Item 4 Staff Report        Item 4: Staff Report Pg. 1  Packet Pg. 57 of 445  STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW APPROVED BY: Item 4 Item 4 Staff Report        Item 4: Staff Report Pg. 2  Packet Pg. 58 of 445  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Library Meeting Date: September 15, 2025 Report #:2506-4846 TITLE Approval of Contract Amendment Number 1 to Contract C21177635B with Ingram Library Services in the amount of $255,000 for Print Materials and Services for a new not-to-exceed (NTE) of $455,000; and Contract Amendment Number 1 to Contract C21177635C with Midwest Tape in the amount of $53,000 for Media and Digital Materials and Services for a new not-to- exceed (NTE) of $753,000; CEQA Status – Not a Project. RECOMMENDATION Staff recommends that the City Council approve and authorize the City Manager, or designee, to execute: Amendment No. 1 to Contract C21177635B with Ingram Library Services (Attachment A), increasing the not-to-exceed (NTE) amount by $255,000, for a new total NTE of $455,000, to support the acquisition of print materials and services. Amendment No. 1 to Contract C21177635C with Midwest Tape (Attachment B), increasing the NTE amount by $53,000, for a new total NTE of $753,000, to support the acquisition of media and digital materials and services. EXECUTIVE SUMMARY Staff recommends amending the City’s contracts with Ingram Library Services and Midwest Tape. These amendments will reallocate funds from Baker & Taylor’s contract to vendors that have demonstrated consistent, timely service. Staff have faced consistent and significant performance issues with Baker & Taylor—originally the City’s primary vendor for print materials. This adjustment ensures the community’s continued access to print, media, and digital materials without increasing the total cost among the City’s vendors for these services. BACKGROUND In 2020, the Library issued a Request for Proposals (RFP) to identify qualified vendors for the acquisition and delivery of print, media, and digital library materials and related services. The Item 5 Item 5 Staff Report        Item 5: Staff Report Pg. 1  Packet Pg. 59 of 445  RFP resulted in three six-year contracts, approved by City Council on June 22, 2020.1 All three contracts have a six-year term of July 1, 2020 to June 30, 2026. Contract C21177635A – Baker and Taylor o Total NTE for six years = $2,000,000 Contract C21177635B – Ingram Library Services o Total NTE for six years = $200,000 Contract C21177635C – Midwest Tape o Total NTE for six years = $700,000 Following the RFP process, Baker & Taylor was selected as the primary vendor for print, media and digital materials and services, with Ingram and Midwest Tape designated as secondary vendors. Over the course of FY25, Baker & Taylor’s performance declined significantly, with numerous orders delayed or unfulfilled. In March, the vendor abruptly canceled over 1,000 backordered items without notice, depriving the Palo Alto community of timely access to new and popular materials. In response, staff worked with Ingram and Midwest Tape to replace the canceled items. Both vendors fulfilled the replacement orders promptly and reliably. ANALYSIS To ensure uninterrupted service to the community and continued access to new and high- demand books and media, staff recommends reallocating $308,000 in funds from Baker & Taylor’s contract (C21177635A) as follows: $255,000 to Contract C21177635B – Ingram Library Services $53,000 to Contract C21177635C – Midwest Tape This reallocation ensures continued access to high-demand materials, reflects vendor performance and maintains service quality. The current contracts, which were competitively awarded, are in their sixth and final year and will expire on June 30, 2026. Staff will initiate a new RFP process in advance of that date. This adjustment results in net zero fiscal impact, and the total not-to-exceed (NTE) amount of $2,900,000 across all three contracts remains unchanged, as shown in this table: 1 City Council, June 22, 2020, agenda item 26, staff report # 11398, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=80844 Item 5 Item 5 Staff Report        Item 5: Staff Report Pg. 2  Packet Pg. 60 of 445  FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: 6 Years NTE orginal Decrease NTE amended NTE orginal Increase NTE amended NTE orginal Increase NTE amended Year 1 - FY21 (July 1 '20 to June 30 '21)$210,000 $210,000 $20,000 $20,000 $110,000 $110,000 Year 2 - FY22 (July 1 '21 to June 30 '22)$358,000 $358,000 $36,000 $36,000 $118,000 $118,000 Year 3 - FY23 (July 1 '22 to June 30 '23)$358,000 $358,000 $36,000 $36,000 $118,000 $118,000 Year 4 - FY24 (July 1 '23 to June 30 '24)$358,000 $358,000 $36,000 $36,000 $118,000 $118,000 Year 5 - FY25 (July 1 '24 to June 30 '25)$358,000 $358,000 $36,000 $36,000 $118,000 $118,000 Year 6 - FY26 (July 1 '25 to June 30 '26)$358,000 $308,000 $50,000 $36,000 $255,000 $291,000 $118,000 $53,000 $171,000 TOTAL life of contract $2,000,000 $1,692,000 $200,000 $455,000 $700,000 $753,000 Contract C21177635A - BAKER & TAYLOR Contract C21177635B - INGRAM Contract C21177635C - MIDWEST TAPE Item 5 Item 5 Staff Report        Item 5: Staff Report Pg. 3  Packet Pg. 61 of 445  AMENDMENT NO. 1 TO CONTRACT NO. C21177635B BETWEEN THE CITY OF PALO ALTO AND INGRAM LIBRARY SERVICES, LLC This Amendment No. 1 (this “Amendment”) to Contract No. C21177635B (the “Contract” as defined below) is entered into as of September 8, 2025, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and INGRAM LIBRBARY SERVICES, LLC, a Tennessee corporation, located at One Ingram Blvd., La Verne, TN 37086 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of print material and services, as detailed therein. B. The Parties now wish to amend the Contract in order to increase total not-to-exceed compensation by Two Hundred and Fifty-Five Thousand Dollars ($255,000), from Two Hundred Thousand Dollars ($200,000) to Four Hundred Fifty-Five Thousand Dollars ($455,000), 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. C21177635B between CONSULTANT and CITY, dated July 1, 2020. b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to read as follows: “The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed Four Hundred Fifty-Five Thousand Dollars (455,000.00). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. Annual Not-to-Exceed amounts are: $20,000.00 in year 1 (July 1, 2020 through June 30, 2021) $36,000.00 in year 2 (July 1, 2021 through June 30, 2022) $36,000.00 in year 3 (July 1, 2022 through June 30, 2023) $36,000.00 in year 4 (July 1, 2023 through June 30, 2024) $36,000.00 in year 5 (July 1, 2024 through June 30, 2025) $291,000.00 in year 6 (July 1, 2025 through June 30, 2026) The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “SCHEDULE OF RATES,” Docusign Envelope ID: 5C255636-FFE3-40E3-861F-787D41FADF1F Item 5 Attachment A - Contract Amendment Number 1 to C21177635B Ingram Library Services        Item 5: Staff Report Pg. 4  Packet Pg. 62 of 445  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 3. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “C” entitled “COMPENSATION, AMENDMENT NO. 1” (AMENDED, REPLACES PREVIOUS) b. Exhibit “C-1” entitled “SCHEDULE OF RATES, AMENDMENT NO. 1” (AMENDED, REPLACES PREVIOUS) SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) Docusign Envelope ID: 5C255636-FFE3-40E3-861F-787D41FADF1F Item 5 Attachment A - Contract Amendment Number 1 to C21177635B Ingram Library Services        Item 5: Staff Report Pg. 5  Packet Pg. 63 of 445  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 INGRAM LIBRARY SERVICE, LLC Officer 1 By: Name: Title: Officer 2 By: Name: Attachments: Exhibit “C”: C0MPENSATION, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) Exhibit “C-1”: SCHEDULE OF RATES, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) Docusign Envelope ID: 5C255636-FFE3-40E3-861F-787D41FADF1F VP Ingram Library Services Carolyn Morris CFO Brian Dauphin Item 5 Attachment A - Contract Amendment Number 1 to C21177635B Ingram Library Services        Item 5: Staff Report Pg. 6  Packet Pg. 64 of 445  EXHIBIT “C” COMPENSATION, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the 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. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, and the total compensation for Additional Services do not exceed the amounts set forth in Section 4 of this Agreement. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Year 1 (July 1, 2020 through June 30, 2021) $20,000.00 Year 2 (July 1, 2021 through June 30, 2022) $36,000.00 Year 3 (July 1,2022 through June 30, 2023) $36,000.00 Task 4 (July 1, 2023 through June 30, 2024) $36,000.00 Task 5 (July 1, 2024 through June 30, 2025) $36,000.00 Task 6 (July 1, 2025 through June 30, 2026) $291,000.00 Sub-total Basic Services $455,000.00 Reimbursable Expenses $0.00 Total Basic Services and $455,000.00 Docusign Envelope ID: 5C255636-FFE3-40E3-861F-787D41FADF1F Item 5 Attachment A - Contract Amendment Number 1 to C21177635B Ingram Library Services        Item 5: Staff Report Pg. 7  Packet Pg. 65 of 445  EXHIBIT “C-1” SCHEDULE OF RATES, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) Discount Schedule Trade Hardcover 45.0% Trade/Quality Paperback 40.0% Mass Market Paperback 38.0% Library Bindings 24.0% Pre-binds 24.0% Graphic Novels 35.0% University Press 8.0% Short discount titles 8.0% Spoken Word Audio, trade 45.0% Spoken Word Audio, non-trade 8.0% DVD and Blu-ray 28.0% Music 5.0% Video Games 5.0% Net Titles 0.0% Discount Details: • Discounts apply to Adult, Young Adult, and Juvenile materials. • Spanish and other World Language materials receive these same discounts. • Continuations and Standing Order/New Title Notification Program titles, backorders, and re- orders receive the same discount schedule as firm orders. • There are no hidden fees when ordering from Ingram. • Ingram does not apply service charges for Net titles, for special orders, or for titles requiring prepayment from the publisher. • Experience has shown that Ingram Library Services provides more titles at full trade discounts than any other distributor in the industry. • During the term of the agreement, we are happy to provide pricing for any new formats, materials, or services that may become available or have not been previously quoted. • Our discount schedule will remain firm for the initial contract period. Discounts are applied to the publisher’s current list price. List prices of individual library materials are set by the publishers/manufacturers and not by Ingram as distributor. Therefore, we cannot guarantee that the retail/list price of an item will not change during the term of the contract, as the publisher/manufacturer can change their list prices without notice. Prior to placing an order, the Library can determine a title’s estimated discount by utilizing the “Price this List” or Quotation features on ipage, as described in this proposal. Docusign Envelope ID: 5C255636-FFE3-40E3-861F-787D41FADF1F Item 5 Attachment A - Contract Amendment Number 1 to C21177635B Ingram Library Services        Item 5: Staff Report Pg. 8  Packet Pg. 66 of 445  In determining which titles receive less than full trade discounts, Ingram has utilized its best efforts to categorize books for pricing purposes by considering the binding, cost of acquisition, general marketing categories, publisher’s discount, and other factors as defined by the Definitions of Binding Types and Presses provided. Ingram reserves the right to be the sole and final determinant of the pricing category. Ingram bases pricing upon several factors including dollar value of commitment, actual expenditure, number of accounts and shipping locations. Ingram reserves the right to offer pricing and services to any customer based solely on Ingram management criteria. Definitions of Binding Types and Presses Trade Hardcover: High demand fiction and nonfiction books published with a glued binding and a hardcover. These titles are typically for the general consumer and produced by widely distributed publishers. Trade bindings may also be referred to as retail trade editions, trade books, hardbound books, hardback books, cloth bound books or cloth cover books. Publishers normally produce these titles in larger print runs. * Quality Paperback: High demand fiction and nonfiction books with paper covers and generally no size restriction. Any illustrations or graphics may be placed throughout the book; both paper and printing are high quality. These titles are typically for the general consumer and produced by widely distributed publishers. This binding may also be referred to as trade paper or trade paperback. Mass Market Paperback: High demand books with paper covers that are produced in a size to fit a standard retail store display and generally deal with subjects of mass appeal. Any illustrations are grouped together in one section of the book. * Library Bindings: Books of higher quality publisher bindings, usually fanned and glued, and may also be sewn. Books may be identified as Library Bindings on ipage. University Press: The binding types may vary for these titles (i.e. Hardcover and/or Paperback), but all are published by a University Press. Short Discount/Non-Trade: Lower demand, small print-run books in various bindings, and includes legal, technical, reference, scientific, and medical titles as defined by Ingram subject categories. Titles are generally published by small or university presses. Also included are print and audiobook titles purchased at lower than full trade discount; titles with limited sales volume; and/or titles from publishers not in compliance with Ingram’s purchasing requirements. Ingram is pleased to make this broad base of titles available to our customers with no service charges. Large Print: Ingram does not recognize the large print title as a separate binding type for discount purposes. Large print titles will receive discounts according to the binding/press assigned to the ISBN ordered as outlined above. Graphic Novels: A narrative work in which the story is conveyed to the reader using comic form. The term is employed in a broad manner, encompassing nonfiction works and Docusign Envelope ID: 5C255636-FFE3-40E3-861F-787D41FADF1F Item 5 Attachment A - Contract Amendment Number 1 to C21177635B Ingram Library Services        Item 5: Staff Report Pg. 9  Packet Pg. 67 of 445  thematically linked short stories as well as fictional stories across a number of genres. Picture Books, Board Books, Easy Readers, and Big Books: These juvenile genre categories are not discounting categories used by Ingram. These books will receive the discount appropriate to the specific binding/press ordered as outlined above. We estimate that at least 80% would receive the full trade discount. Prebound Books: Paperback books bound into a hardback edition. Our inventory also includes over 17,500 prebound titles from Perfection Learning and San Val (Turtleback Books), and are identified on ipage as Prebound-Sewn or Prebound-Glued. World Language Materials: Ingram does not recognize Spanish language (or any world languages) as a discounting category. These books will receive the discount appropriate to the specific binding/press ordered as outlined above. Net: Low demand, small print run books in various binds upon which Ingram receives minimal or no purchase discount. This category of book will receive a 0% discount. Ingram is pleased to make this broad base of titles available to our customers with no service charges. *See Short Discount for explanation on titles that may fall outside of this discount category. ipage ipage is Ingram’s web-based title selection, ordering, and account management tool. Libraries recognize ipage as an integral timesaving tool whose collection development and acquisitions capabilities, along with its various account management tools, make day-to-day ordering and receiving tasks virtually hassle- free. ipage can be accessed at https://ipage.ingramcontent.com. Through ipage, Library users can access our entire inventory, including active titles and extended database. • PACL will continue to receive a free subscription to ipage, with easy-to-use ordering capabilities and all other features at no cost for unlimited concurrent users. • PACL staff can receive ipage training at no charge. • ipage includes review citations and full text reviews for print titles from several journals including, but not limited to, Booklist, Library Journal, and Publisher’s Weekly. If the Library wishes to view full-text reviews, there is a nominal fee of $350.00 per year for that additional service. The Library also has the option of paying in installments of $35.00 per month. Fee for reviews is subject to review and change on an annual basis with notice. • Complimentary selection lists, curated by our professional library staff, are available for no charge on ipage. • Additional collection development tools including catalogs, Ingram Sendr, and marketing materials are available at no charge through ipage. Collection Development Fees Docusign Envelope ID: 5C255636-FFE3-40E3-861F-787D41FADF1F Item 5 Attachment A - Contract Amendment Number 1 to C21177635B Ingram Library Services        Item 5: Staff Report Pg. 10  Packet Pg. 68 of 445  Complimentary Curation Services: ipage collection development tools including ipage lists and standing order/New Title Notification programs, are provided free of charge. Custom Collection Development Custom Opening Day Collection Lists are complimentary. Costs for ongoing custom lists will be quoted on a list-by-list basis, and fees are based on the library’s specifications including level of customization, number of lists required annually, and whether it is for a special project or an ongoing list requiring regular updates. Any future programs we may offer for customized collection development services may have standard charges. iCurate Core and Coming Soon: • iCurate Coming soon lists are $775 per year for each of Adult, Teen, and Children’s Lists. • Subscribe to all three lists iCurate Coming Soon lists and save ~10% at $2,100 per year (12 months.) Plus, the bonus one-step deduping feature is included free with any subscription. • Each set of iCurate Core lists (Adult, Teen, Children’s) costs $1,000, or you can get all three for $2,800. Edelweiss+Analytics Please contact your Ingram Sales Representative for details and pricing on E+A. Cataloging and Processing Print Books: Barcodes (1) (Ingram supplied) Property Stamp (1) Clear Corner Pocket RFID – Customer-supplied tag, programmed and applied Colored Tape Spine Label Genre Labels BookMARC Record Additional Labels, e.g. “New” CIP Record Upgrades Label Protector(s) – up to two Original Cataloging Mylar Jacket-Taped Z39.50 Title Search Property Label (1) For multi-vendor award, the bundled fee will be $6.25 per unit, to include the same cataloging and processing components. Freight Terms Items picked, packed, and shipped together count as an individual shipment. The qualifying unit quantity is subject to change with notice. Distribution center designation may be modified at Ingram’s discretion based on order volume or when a requested service is only provided from a specific distribution center. Ingram shall primarily use UPS ground service as the carrier to transport shipments; however, Ingram reserves the right to choose the most cost-effective shipping method. Docusign Envelope ID: 5C255636-FFE3-40E3-861F-787D41FADF1F Item 5 Attachment A - Contract Amendment Number 1 to C21177635B Ingram Library Services        Item 5: Staff Report Pg. 11  Packet Pg. 69 of 445  Shipments of 15 or more units from Library’s primary and secondary distribution center with Ingram will ship with Ingram Paid Freight and receive a fuel surcharge fee of $2.50. Shipments of 1-14 units will be charged a flat freight fee of $6.00 in addition to the $2.50 fuel surcharge fee. The surcharge fee will appear as part of “Shipping and Handling” charge on Ingram invoices and is subject to change with notice. All shipments shall be FOB Destination. Ingram retains full responsibility and risk of loss or damage until items are delivered to the Library’s designated receiving locations. Upon confirmed delivery, all liabilities shall transfer to the Library. When freight charges on an individual account surpass 2.5% of the account's expenditures, Ingram reserves the right to change the shipping settings. Changes to account settings such as one warehouse for shipments or shipment timetables and order consolidation levels are examples of such alterations. Ingram will work closely with the Library to ensure if changes are made, it is in the best interests of both parties. When requested by the Library, and if the carrier's operating conditions permit, the carrier may perform inside delivery. Inside delivery is defined as the carrier will get the freight inside the door or onto a dock. The Library is responsible for transferring the items to other desired destinations. The Library will specify inside delivery when establishing/updating their account(s) with Ingram. Inside delivery will be clearly designated on the shipper’s bill of lading but not on the Ingram shipping label. Payment Terms Payment terms under this offer shall be Net 30 Days. Payment is required for invoices within these terms even when a purchase order has not been completed. Ingram does not invoice for items until they have been shipped. While other vendors demand payment from invoice date, Ingram’s terms are calculated on statement date at the end of each month. With payment due 30 days from statement date, the customer’s payment is due an average of 45 days from invoice (30-59 days). Ingram reserves the right to assess a late charge on all past due invoices. Ingram has multiple payment methods, including Electronic Funds Transfer (online payment through ipage via bank account), payment via credit card (account set for automatic charge) or by check. Financial Information on ipage The Library’s ipage Administrator can designate which staff members have access to view account- specific accounting items such All Open Accounting Items, Open Invoices, and Open Credit Memos. Closed invoices and credit memos are available for viewing for 90 days. Through ipage, the Library can also look at its last statement and view the last six payments received by Ingram plus review recent and pending electronic payment. Docusign Envelope ID: 5C255636-FFE3-40E3-861F-787D41FADF1F Item 5 Attachment A - Contract Amendment Number 1 to C21177635B Ingram Library Services        Item 5: Staff Report Pg. 12  Packet Pg. 70 of 445  Vers.: Aug. 5, 2019 Page 10 of 10 Docusign Envelope ID: 5C255636-FFE3-40E3-861F-787D41FADF1F Item 5 Attachment A - Contract Amendment Number 1 to C21177635B Ingram Library Services        Item 5: Staff Report Pg. 13  Packet Pg. 71 of 445  AMENDMENT NO. 1 TO CONTRACT NO. C21177635C BETWEEN THE CITY OF PALO ALTO AND MIDWEST TAPE, LLC This Amendment No. 1 (this “Amendment”) to Contract No. C21177635C (the “Contract” as defined below) is entered into as of July 29, 2025, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and MIDWEST TAPE, LLC, an Ohio corporation, located at1417 Timberwolf Drive, Holland, Ohio, 43528 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of media and digital materials and services, as detailed therein. B. The Parties now wish to amend the Contract in order to Increase total not-to-exceed compensation by Fifty-Three Thousand Dollars ($53,000), from Seven Hundred Thousand Dollars ($700,000) to Seven Hundred and Fifty-Three Thousand Dollars ($753,000), 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. C21177635C between CONSULTANT and CITY, dated July 1, 2020. b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to read as follows: The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed Seven Hundred Thousand Dollars (700,000.00). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. Annual Not-to-Exceed amounts are: $110,000.00 in year 1 (July 1, 2020 through June 30, 2021) $118,000.00 in year 2 (July 1, 2021 through June 30, 2022) $118,000.00 in year 3 (July 1, 2022 through June 30, 2023) $118,000.00 in year 4 (July 1, 2023 through June 30, 2024) $118,000.00 in year 5 (July 1, 2024 through June 30, 2025) $171,000 in year 6 (July 1, 2025 through June 30, 2026) Docusign Envelope ID: C0355533-3C81-48D1-B243-A6AA634E043F Item 5 Attachment B - Contract Amendment Number 1 to C21177635C Midwest Tape        Item 5: Staff Report Pg. 14  Packet Pg. 72 of 445  The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “SCHEDULE OF RATES,” 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 3. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “C” entitled “COMPENSATION, AMENDMENT NO. 1”, AMENDED, REPLACES PREVIOUS. SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) Docusign Envelope ID: C0355533-3C81-48D1-B243-A6AA634E043F Item 5 Attachment B - Contract Amendment Number 1 to C21177635C Midwest Tape        Item 5: Staff Report Pg. 15  Packet Pg. 73 of 445  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 MIDWEST TAPE, LLC Officer 1 By: Name: Title: Officer 2 By: Name: Attachments: Exhibit C: COMPENSATION, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) Docusign Envelope ID: C0355533-3C81-48D1-B243-A6AA634E043F Jeff Jankowski Vice President Sue Bascuk Vice President Item 5 Attachment B - Contract Amendment Number 1 to C21177635C Midwest Tape        Item 5: Staff Report Pg. 16  Packet Pg. 74 of 445  EXHIBIT “C” COMPENSATION, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the 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. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, and the total compensation for Additional Services do not exceed the amounts set forth in Section 4 of this Agreement. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Year 1 (July 1, 2020 through June 30, 2021) $110,000.00 Year 2 (July 1, 2021 through June 30, 2022) $118,000.00 Year 3 (July 1,2022 through June 30, 2023) $118,000.00 Task 4 (July 1, 2023 through June 30, 2024) $118,000.00 Task 5 (July 1, 2024 through June 30, 2025) $118,000.00 Task 6 (July 1, 2025 through June 30, 2026) $171,000.00 Sub-total Basic Services $753,000.00 Reimbursable Expenses $0.00 Total Basic Services and $700,000.00 Docusign Envelope ID: C0355533-3C81-48D1-B243-A6AA634E043F Item 5 Attachment B - Contract Amendment Number 1 to C21177635C Midwest Tape        Item 5: Staff Report Pg. 17  Packet Pg. 75 of 445  Vers.: Aug. 5, 2019 Page 5 of 5 REIMBURSABLE EXPENSES 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: None All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $0 shall be approved in advance by the CITY’s project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. Docusign Envelope ID: C0355533-3C81-48D1-B243-A6AA634E043F Item 5 Attachment B - Contract Amendment Number 1 to C21177635C Midwest Tape        Item 5: Staff Report Pg. 18  Packet Pg. 76 of 445  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: September 8, 2025 Report #:2506-4870 TITLE Approval of 1) Amendment No. 8 to Contract No. C16163034A with Cumming Management Group, Inc. to Add $208,528, Increasing the Not-to-Exceed Amount to $10,683,771, for Additional Construction Management Services; 2) Professional Services Contract No. S26195542 with 4Leaf, Inc. in the Amount of $150,579 to Provide Inspector of Record Services; and 3) Amendment to the Fiscal Year 2026 Budget Appropriation for the Capital Improvement Fund to Support the New Public Safety Building Capital Improvement Program Project (PE- 15001); CEQA Status - Environmental Impact Report for the New Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772) RECOMMENDATION Staff recommends that the City Council: 1. Approve and authorize the City Manager or their designee to execute Amendment No. 8 to Contract No. C16163034A with Cumming Management Group, Inc. to add $208,528, increasing the not to exceed amount to $10,683,771 for Construction Management Services for the New Public Safety Building project (PE-15001); 2. Approve and authorize the City Manager or their designee to execute Professional Services Contract No. S26195542 with 4Leaf, Inc. in the Amount of $150,579 to Provide Inspector of Record services for the New Public Safety Building project (PE-15001); and 3. Amend the Fiscal Year 2026 Budget Appropriation for the Capital Improvement Fund by (requires a 2/3 vote): a. Decreasing the Infrastructure Plan Reserve by $1,200,000; b. Decreasing the Capital Fund Infrastructure Reserve by $2,000,000; and c. Increasing the New Public Safety Building project (PE-15001) appropriation by $3,200,000. Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 1  Packet Pg. 77 of 445  BACKGROUND Now with move-in and final construction-related activities underway, the New Public Safety Building (PSB) is one of ten key projects included in the 2014 Council Infrastructure Plan. The PSB was identified as the plan’s highest priority project, and its environmental impacts were analyzed with the 350 Sherman Avenue parking garage project for the purposes of complying with the California Environmental Quality Act (CEQA). The parking garage opened in December 2020. On February 1, 2021, Council approved the award of the construction contract for the PSB to Swinerton Builders (Swinerton) and authorized execution and delivery of one series of Certificates of Participation in an amount not to exceed $120 million to finance PSB construction; ultimately, only $101 million in debt was issued.1 On June 13, 2016, Council authorized a contract with Nova Partners, Inc. (Nova) for program management and construction management services for the Infrastructure Plan projects implementation.2 Several amendments were subsequently approved for additional services and time for completion. 3, 4, 5, 6 In July 2024, Nova merged with Cumming Management Group, Inc. (“CMGI”) and CMGI assumed all duties and obligations of Nova. On December 9, 2024, Amendment No. 8 to CMGI’s contract added construction management services for the PSB.7 On February 26, 2020, the City released a formal Request for Proposal (RFP177994) for on-call contract administration services by Development Services and 4LEAF was one of six contracts approved by Council on June 22, 2020.8 4Leaf, Inc. (4Leaf) has served as the City’s primary inspector of record for the PSB since construction began. That contract has now expired, and all available funds have been exhausted. However, inspection services are still required to complete the project and obtain final building permit sign-off. In November 2024, the City Manager approved an exemption to competitive solicitation for design services with 4Leaf, Inc. under PAMC Section 2.30.360(b). ANALYSIS 1 City Council, February 1, 2021; Agenda Item #3, SR #11752 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=81421 2 City Council, June 13, 2016; Agenda Item #5, SR #6809 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=79216 3 City Council, November 27, 2017; Agenda Item #7, SR #8561 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=78355 4 City Council, December 10, 2018; Agenda Item #15, SR #9688 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=76086 5 City Council, February 1, 2021; Agenda Item #3, SR #11752 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=81421 6 City Council, February 26, 2024; Agenda Item #6, SR #2310-2130 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82701 7 City Council, December 9, 2024, Agenda Item #11, SR#2410-3658 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=83138 8 City Council, June 22, 2020, SR# 11255 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=80764 Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 2  Packet Pg. 78 of 445  The PSB is one of the most complex projects that the City has constructed to date. Since the construction contract was awarded in early 2021, a series of change orders have been necessary to address unforeseen site conditions, owner-directed modifications, design clarifications, and revisions required by the authorities having jurisdiction (AHJ), which are agencies that are responsible for enforcing codes and regulations. FISCAL/RESOURCE IMPACT Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 3  Packet Pg. 79 of 445  STAKEHOLDER ENGAGEMENT Public Works has coordinated with key staff from departments involved with the PSB. ENVIRONMENTAL REVIEW An Environmental Impact Report for the PSB and the New California Avenue Area Parking Garage was prepared and certified by Council on June 11, 2018 (ID #8967), by adoption of Resolution No. 9772.17 ATTACHMENTS Attachment A: Cumming Management Group, Inc. Contract No. C16163034A Amendment No. 8 Attachment B: 4Leaf, Inc. Contract No. S26195542 APPROVED BY: Brad Eggleston, Director Public Works/City Engineer 17 Resolution 9772 Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 4  Packet Pg. 80 of 445  Vers.: Aug. 5, 2019 Page 1 of 8 AMENDMENT NO. 8 TO CONTRACT NO. C16163034A BETWEEN THE CITY OF PALO ALTO AND CUMMING MANAGEMENT GROUP, INC. This Amendment No. 8 (this “Amendment”) to Contract No. C16163034A (the “Contract” as defined below) is entered into as of September 8, 2025, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and CUMMING MANAGEMENT GROUP, , INC., a California corporation, located at 25220 Hancock Avenue, Suite 440, Marietta, CA 92562 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of providing Project and Program Management Services to complete the infrastructure plan for nine major projects approved by City Council in 2014 (“Project”), as detailed therein. B. The CITY and NOVA Partners, Inc. entered into the Contract (defined below). Pursuant to the Consent to Novation (detailed below) executed between NOVA Partners, Inc., Cumming Management Group, Inc., and CITY, wherein Cumming Management Group, Inc. was transferred the obligations of the CONSULTANT under the Contract and Cumming Management Group, Inc. thereby became the CONSULTANT under the Contract. C. The Parties entered into Amendment No. 1 to add Construction Management (CM) services for the Fire Station 3 Replacement Project to the scope of services and to increase the compensation by Three Hundred Fifty-Nine Thousand Two Hundred Sixty-Four Dollars ($359,264) from Four Million Two Hundred Thousand Four Hundred Seventy-One Dollars ($4,200,471) to Four Million Five Hundred Fifty-Nine Thousand Seven Hundred Thirty-Five Dollars ($4,559,735), as detailed therein. D. The Parties entered into Amendment No. 2 to include the Hourly Rate Schedule for years 2018 and 2019, as detailed therein. E. The Parties entered into Amendment No. 3 to add Construction Management (CM) services for the New California Avenue Area Parking Garage Project to the scope of services and to increase the compensation by One Million Two Hundred Forty-Nine Thousand One Hundred Ninety-Three Dollars ($1,249,193), from Four Million Five Hundred Fifty-Nine Thousand Seven Hundred Thirty-Five Dollars ($4,559,735) to a new not-to-exceed amount of Five Million Eight Hundred Eight Thousand Nine Hundred Twenty-Eight Dollars ($5,808,928), as detailed therein. F. The Parties entered into Amendment No. 4 to add Construction Management (CM) services for the New Public Safety Building Project to the scope of services and to increase the compensation by Three Million Seventy-One Thousand Nine Hundred Seventy-Eight Dollars ($3,071,978), from Five Million Eight Hundred Eight Thousand Nine Hundred Twenty-Eight Dollars ($5,808,928) to a new total not-to-exceed amount of Eight Million Eight Hundred Eighty Thousand Nine Hundred Six Dollars ($8,880,906), as detailed therein. G. In accordance with Palo Alto Municipal Code section 2.30.290, the Parties entered into Amendment No. 5 to extend the contract term for six months, through January 31, 2024 at no additional cost to the City, as detailed therein. Docusign Envelope ID: EFF01B3C-4E63-49F9-9D54-90A58E9A8AA3 Item 6 Attachment A - Cumming Management Group, Inc. Contract No. C16163034A Amendment No. 8        Item 6: Staff Report Pg. 5  Packet Pg. 81 of 445  Vers.: Aug. 5, 2019 Page 2 of 8 H. The Parties entered into Amendment No. 6 to extend the contract term for eighteen months through July 31, 2025 and increase compensation by Seven Hundred Sixty-Six Thousand Nine Hundred Nineteen Dollars ($766,919) from Eight Million Eight Hundred Eighty Thousand Nine Hundred Six Dollars ($8,880,906) to a new not-to-exceed amount of Nine Million Six Hundred Forty-Seven Thousand Eight Hundred Twenty-Five Dollars ($9,647,825) in order to provide continued services to manage the Public Safety Building, as detailed therein. I. The Parties entered into Amendment No. 7 to increase compensation by Eight Hundred Twenty- Seven Thousand Four Hundred Eighteen Dollars ($827,418) from Nine Million Six Hundred Forty-Seven Thousand Eight Hundred Twenty-Five Dollars (9,647,825) to a new not-to-exceed amount of Ten Million Four Hundred Seventy-Five Thousand Two Hundred Forty-Three Dollars ($10,475,243) in order to provide continued services to manage the Public Safety Building, as detailed therein. J. The Parties now wish to amend the Contract to (1) increase compensation by Two Hundred Eight Thousand Five Hundred Twenty-Eight Dollars ($208,528) from Ten Million Four Hundred Seventy-Five Thousand Two Hundred Forty-Three Dollars ($10,475,243) to a new not-to-exceed amount of Ten Million Six Hundred Eighty- Three Thousand Seven Hundred Seventy-One Dollars ($10,683,771); and (2) extend the contract term through December 31, 2026 in order to provide continued services to manage the Public Safety Building, 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. C16163034A between CONSULTANT and CITY, dated June 13, 2016, as assigned to Cumming Management Group, Inc. pursuant to the Consent to Novation to Contract No. C1616034A between NOVA Partners, Inc., Cumming Management Group, Inc., and CITY, wherein Cumming Management Group, Inc. was transferred the obligations of the CONSULTANT under the Contract and Cumming Management Group, Inc thereby became the CONSULTANT under the Contract, as amended by: Amendment No.1, dated November 27, 2017 Amendment No.2, dated February 21, 2018 Amendment No.3, dated December 10, 2018 Amendment No.4, dated February 1, 2021 Amendment No.5, dated July 31, 2023 Amendment No. 6, dated February 26, 2024 Amendment No. 7, dated December 2, 2024 a. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 4, “NOT TO EXCEED COMPENSATION,” of the Contract is hereby amended to read as follows: Docusign Envelope ID: EFF01B3C-4E63-49F9-9D54-90A58E9A8AA3 Item 6 Attachment A - Cumming Management Group, Inc. Contract No. C16163034A Amendment No. 8        Item 6: Staff Report Pg. 6  Packet Pg. 82 of 445  Vers.: Aug. 5, 2019 Page 3 of 8 “The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit “C,” entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Nine Million Seven Hundred Twelve Thousand Five Hundred Nineteen Dollars ($9,712,519) . The hourly schedule of rates, if applicable, is set out in Exhibit “C-1,” entitled “SCHEDULE OF RATES,” Exhibit “C-2,” entitled “SCHEDULE OF RATES, AMENDMENT NO.3,” or Exhibit “C-3,” entitled “SCHEDULE OF RATES, AMENDMENT NO.4,” as applicable. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY. Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.) In addition to the not-to-exceed compensation specified above, CITY has set aside the not-to-exceed compensation amount of Nine Hundred Seventy-One Thousand Two Hundred Fifty-Two Dollars ($971,252) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit “C,” shall not exceed Ten Million Six Hundred Eighty-Three Thousand Seven Hundred Seventy-One Dollars ($10,683,771), as detailed in Exhibit “C.” “Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A,” entitled “SCOPE OF SERVICES”; Exhibit “A-1”, entitled “SCOPE OF SERVICES, AMENDMENT NO. 1”; Exhibit “A-2”, entitled “SCOPE OF SERVICES, AMENDMENT NO. 3, ADDED”; and Exhibit “A-3”, entitled “SCOPE OF SERVICES, AMENDMENT NO. 4, ADDED” (collectively, also referred to in this Agreement as the “Basic Services”). CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit “A-1,” entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit “C,” the hourly rates set forth in Exhibit “C-1,” entitled “SCHEDULE OF RATES”, Exhibit “C-2,” entitled “SCHEDULE OF RATES, AMENDMENT NO.3,” or Exhibit “C-3,” entitled “SCHEDULE OF RATES, AMENDMENT NO.4,” as applicable, or a negotiated lump sum provided such a sum is less costly to the CITY. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.” Docusign Envelope ID: EFF01B3C-4E63-49F9-9D54-90A58E9A8AA3 Item 6 Attachment A - Cumming Management Group, Inc. Contract No. C16163034A Amendment No. 8        Item 6: Staff Report Pg. 7  Packet Pg. 83 of 445  Vers.: Aug. 5, 2019 Page 4 of 8 SECTION 3. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “B” entitled “EXHIBIT B-3 SCHEDULE OF PERFORMANCE, AMENDMENT NO. 8”, AMENDED, REPLACES PREVIOUS. b. Exhibit “C” entitled “EXHIBIT C COMPENSATION, AMENDMENT NO. 8”, AMENDED, REPLACES PREVIOUS. SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) Docusign Envelope ID: EFF01B3C-4E63-49F9-9D54-90A58E9A8AA3 Item 6 Attachment A - Cumming Management Group, Inc. Contract No. C16163034A Amendment No. 8        Item 6: Staff Report Pg. 8  Packet Pg. 84 of 445  Vers.: Aug. 5, 2019 Page 5 of 8 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 CUMMING MANAGEMENT GROUP, INC. Officer 1 By:___________________________ Name:________________________ Title:__________________________ Officer 2 By:____________________________ Name:_________________________ Attachments: Exhibit “B” entitled “EXHIBIT B-3 SCHEDULE OF PERFORMANCE, AMENDMENT No. 8”, (AMENDED, REPLACES PREVIOUS) Exhibit “C” entitled “EXHIBIT C COMPENSATION, AMENDMENT NO. 8” (AMENDED, REPLACES PREVIOUS) Docusign Envelope ID: EFF01B3C-4E63-49F9-9D54-90A58E9A8AA3 Senior Vice President Robert Olson, Senior Vice President A. Al Jajeh, CFO CFO Item 6 Attachment A - Cumming Management Group, Inc. Contract No. C16163034A Amendment No. 8        Item 6: Staff Report Pg. 9  Packet Pg. 85 of 445  Vers.: Aug. 5, 2019 Page 6 of 8 EXHIBIT “B-3” SCHEDULE OF PERFORMANCE, AMENDMENT NO. 8 (AMENDED-REPLACES PREVIOUS) CONSULTANT shall commence performance of Task 5.3 (Construction Management Services for the New Public Safety Building) of Exhibit “A-3”, upon issuance of Notice to Proceed through the duration of the project unless earlier terminated by CITY in its sole discretion. For information purposes, Task 5.3 is expected to be performed from January 1, 2021 through December 31, 2026 and consist of a total duration of 72 months from commencement of construction; however, that timeframe may be modified by CITY as project needs require. Docusign Envelope ID: EFF01B3C-4E63-49F9-9D54-90A58E9A8AA3 Item 6 Attachment A - Cumming Management Group, Inc. Contract No. C16163034A Amendment No. 8        Item 6: Staff Report Pg. 10  Packet Pg. 86 of 445  Vers.: Aug. 5, 2019 Page 7 of 8 EXHIBIT “C” COMPENSATION, AMENDMENT NO. 8 (AMENDED, REPLACES PREVIOUS) The CITY agrees to compensate the CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the schedule of rates attached as Exhibit “C-1”, Exhibit “C-2”, and/or Exhibit “C-3,” as applicable, up to the not to exceed budget amount for each task set forth below. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including specified reimbursable expenses, and the total compensation for Additional Services, do not exceed the amounts set forth in Section 4 of this Agreement. REIMBURSABLE EXPENSES 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 up to the not-to-exceed amount of: $36,000. 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 $1,000 shall be approved in advance by the CITY’s project manager. (CONTINUED ON THE NEXT PAGE) Docusign Envelope ID: EFF01B3C-4E63-49F9-9D54-90A58E9A8AA3 Item 6 Attachment A - Cumming Management Group, Inc. Contract No. C16163034A Amendment No. 8        Item 6: Staff Report Pg. 11  Packet Pg. 87 of 445  Vers.: Aug. 5, 2019 Page 8 of 8 BUDGET SCHEDULE: NOT-TO-EXCEED COMPENSATION BASIC SERVICES Planning, and Coordination $140,898 $140,898 $140,898 $0 $0 $0 $0 $422,694 $175,000 $100,000 $100,000 $0 $0 $0 $0 $375,000 management of project $144,975 $144,975 $144,975 $0 $0 $0 $0 $434,925 $206,762 $206,762 $206,762 $0 $0 $0 $0 $620,286 $283,650 $283,650 $283,650 $0 $0 $0 $0 $850,950 Management services for Fire $0 $326,604 $0 $0 $0 $0 $0 $326,604 Management services for New California Avenue Area Parking $0 $0 $1,135,630 $0 $0 $0 $0 $1,135,630 Management services for New $0 $0 $0 $2,792,707 $697,199 $752,198 $189,571 $4,431,675 $63,985 $63,985 $63,985 $0 $0 $0 $0 $191,955 $333,400 $253,400 $0 $0 $0 $0 $0 $586,800 $100,000 $100,000 $100,000 $0 $0 $0 $0 $300,000 $1,448,670 $1,620,274 $2,175,900 $2,792,707 $697,199 $752,198 $189,571 $9,676,519 $12,000 $12,000 $12,000 $0 $0 $0 $0 $36,000 $1,460,670 $1,632,274 $2,187,900 $2,792,707 $697,199 $752,198 $189,571 $9,712,519 $146,067 $163,227 $218,790 $279,271 $69,720 $75,220 $18,957 $971,252 $1,606,737 $1,795,501 $2,406,690 $3,071,978 $766,919 $827,418 $208,528 $10,683,771 Docusign Envelope ID: EFF01B3C-4E63-49F9-9D54-90A58E9A8AA3 Item 6 Attachment A - Cumming Management Group, Inc. Contract No. C16163034A Amendment No. 8        Item 6: Staff Report Pg. 12  Packet Pg. 88 of 445  Professional Services Rev. Oct 16,2024 Page 1 of 26 CITY OF PALO ALTO CONTRACT NO. S26195542 AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND 4LEAF, INC. This Agreement for Professional Services (this “Agreement”) is entered into as of the 8th day of September, 2025 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and 4LEAF, INC., a California corporation, located at 2126 Rheem Drive, Pleasanton, CA 94588 (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY is constructing a new Public Safety Building located at 250 Sherman Avenue, Palo Alto, CA 94306 (the “Project”) and desires to engage a consultant to provide Inspector-of-Record (IOR) services in connection with the Project (the “Services”, as detailed more fully in Exhibit A). B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows: SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the effective date of this agreement through December 31, 2026 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 13  Packet Pg. 89 of 445  Professional Services Rev. Oct 16,2024 Page 2 of 26 SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed One Hundred Thirty- Six Thousand Eight Hundred Ninety Dollars ($136,890.00). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY. Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.) In addition to the not-to-exceed compensation specified above, CITY has set aside the not- to-exceed compensation amount of Thirteen Thousand Six Hundred Eighty-Nine Dollars ($13,689.00) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed One Hundred Fifty Thousand Five Hundred Seventy-Nine Dollars ($150,579.00), as detailed in Exhibit C. “Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 14  Packet Pg. 90 of 445  Professional Services Rev. Oct 16,2024 Page 3 of 26 applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below and pweinvoices@paloalto.gov. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more, CONSULTANT shall make recommendations to CITY for aligning the Project design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 15  Packet Pg. 91 of 445  Professional Services Rev. Oct 16,2024 Page 4 of 26 pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT’s provision of the Services only, and not as to the means by which such a result is obtained. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties. SECTION 12. SUBCONTRACTING. Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors. Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcontractors authorized by CITY to perform work on this Project are: CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Traci Caton as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day-to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s Project Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property. Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 16  Packet Pg. 92 of 445  Professional Services Rev. Oct 16,2024 Page 5 of 26 CITY’s Project Manager is Gloria Yu, Public Works Department, Engineering Division, 250 Hamilton Avenue, Palo Alto, CA, 94301, Telephone: 650-329-2484. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services. SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later. SECTION 16. INDEMNITY. [Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all third party demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) to the extent that such Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. CITY will reimburse CONSULTANT for the proportionate percentage of defense costs exceeding CONSULTANT’s proportionate percentage of fault as determined by the final judgment of a court of competent jurisdiction. [Option B applies to any consultant who does not qualify as a design professional as defined in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 17  Packet Pg. 93 of 445  Professional Services Rev. Oct 16,2024 Page 6 of 26 or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement. 16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 29.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 18  Packet Pg. 94 of 445  Professional Services Rev. Oct 16,2024 Page 7 of 26 evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination. 19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials). 19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30. 19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers). SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 19  Packet Pg. 95 of 445  Professional Services Rev. Oct 16,2024 Page 8 of 26 Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement. CONSULTANT shall provide written notice to CITY of any change of address. SECTION 21. CONFLICT OF INTEREST. 21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any conflict arises. 21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time. SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA. 22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. 22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 20  Packet Pg. 96 of 445  Professional Services Rev. Oct 16,2024 Page 9 of 26 this Agreement. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and, third, recycling or composting waste. In particular, CONSULTANT shall comply with the following Zero Waste requirements: (a) All printed materials provided by CONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable-based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060. SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS. 26.1. This Project is not subject to prevailing wages and related requirements. CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 21  Packet Pg. 97 of 445  Professional Services Rev. Oct 16,2024 Page 10 of 26 performance and implementation of the Project if the contract: (1) is not a public works contract; (2) is for a public works construction project of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j). OR 26.1. This Project is subject to prevailing wages and related requirements as a “public works” under California Labor Code Sections 1720 et seq. and related regulations. CONSULTANT is required to pay general prevailing wages as defined in California Labor Code Section 1773.1 and Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as amended from time to time. Pursuant to Labor Code Section 1773, the CITY has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the State of California Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the CITY’s Purchasing Department office. The general prevailing wage rates are also available at the DIR, Division of Labor Statistics and Research, web site (see e.g. http://www.dir.ca.gov/DLSR/PWD/index.htm) as amended from time to time. CONSULTANT shall post a copy of the general prevailing wage rates at all Project job sites and shall pay the adopted prevailing wage rates as a minimum. CONSULTANT shall comply with all applicable provisions of Division 2, Part 7, Chapter 1 of the California Labor Code (Labor Code Section 1720 et seq.), including but not limited to Sections 1725.5, 1771, 1771.1, 1771.4, 1773.2, 1774, 1775, 1776, 1777.5, 1782, 1810, 1813 and 1815, and all applicable implementing regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq. (8 CCR Section 16000 et seq.), as amended from time to time. CONSULTANT shall comply with the requirements of Exhibit E, entitled “DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS”, for any contract for public works construction, alteration, demolition, repair or maintenance, including but not limited to the obligations to register with, and furnish certified payroll records directly to, DIR. SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”. This Project is a 9204 Public Works Project and is required to comply with the claims procedures set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”. OR This Project is not a 9204 Public Works Project. Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 22  Packet Pg. 98 of 445  Professional Services Rev. Oct 16,2024 Page 11 of 26 SECTION 28. CONFIDENTIAL INFORMATION. 28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement. 28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY. 28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order. 28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time. 28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT. 28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions. Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 23  Packet Pg. 99 of 445  Professional Services Rev. Oct 16,2024 Page 12 of 26 SECTION 29. MISCELLANEOUS PROVISIONS. 29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions. 29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time. 29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect. 29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control. 29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement. 29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement. 29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement. SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein: EXHIBIT A: SCOPE OF SERVICES EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 24  Packet Pg. 100 of 445  Professional Services Rev. Oct 16,2024 Page 13 of 26 EXHIBIT B: SCHEDULE OF PERFORMANCE EXHIBIT C: COMPENSATION EXHIBIT C-1: SCHEDULE OF RATES EXHIBIT D: INSURANCE REQUIREMENTS EXHIBIT E: DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS EXHIBIT F: CLAIMS FOR PUBLIC CONTRACT CODE SECTION 9204 PUBLIC WORKS PROJECTS THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED. Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 25  Packet Pg. 101 of 445  Professional Services Rev. Oct 16,2024 Page 14 of 26 CONTRACT No. S26195542 SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written. CITY OF PALO ALTO ____________________________ City Manager APPROVED AS TO FORM: __________________________ 4LEAF, INC. Officer 1 By: ________________________________ Name: ______________________________ Title: _______________________________ Officer 2 By: ________________________________ Name: ______________________________ Title: _______________________________ Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Gene Barry, Vice President Vice President Kevin Duggan, Secretary President Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 26  Packet Pg. 102 of 445  Professional Services Rev. Oct 16,2024 Page 15 of 26 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”. Notwithstanding any provision herein to the contrary, CONSULTANT’s duties and services described in this Scope of Services shall not include preparing or assisting CITY with any portion of CITY’s preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with CITY. CITY shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. CONSULTANT’s participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Scope of Services. The CONSULTANT will provide Inspector-of-Record (IOR) services for the construction of the Public Safety Building (“PSB”), an essential facility, located at 250 Sherman Avenue, Palo Alto, CA 94306. The IOR will act as an agent of the City at the project site and will report to the Chief Building Official (City) or his/her designee and coordinate with the City’s Construction Manager to ensure that the project is constructed in accordance with the Essential Services Buildings Seismic Safety Act (ESBSSA), the approved building permit plans, specifications, and change orders. The IOR services include but are not limited to: a. Availability during construction hours, which are allowed from 8 am – 6 pm Monday - Friday and/or 9 am – 6 pm Saturday. IOR is expected to be full time, and may be asked to be onsite during off hours or weekend hours as deemed necessary by the City or Construction Manager. b. Be familiar with the permit plans, specifications, change orders, and the contractor’s operations during all phases of the project. c. Observe, check and measure items used in the project for compliance with the applicable codes & ordinances, plans, specifications, change orders, and technical instructions from the Architect. d. Attend project meetings requested by the City or Construction Manager such as billing meetings, pre-installation meetings, progress meetings and unique meetings scheduled to resolve specific issues which arise during the course of construction. e. Maintain log of deferred submittals schedule and approval. f. Maintain a daily inspection report/log describing the general work performed by the contractor, noting problems, rejections of materials or work and unusual events. All reports and records created or maintained by the IOR shall be distributed to the City and Construction Manager on a weekly basis and shall be City’s sole property. The inspection report will also include equipment, personnel, and site conditions. g. Create and maintain an extensive photo library, readily identifiable by date and easily referenced to the daily inspection report. Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 27  Packet Pg. 103 of 445  Professional Services Rev. Oct 16,2024 Page 16 of 26 h. Supervise on-site testing and ensure that all required tests are performed by a competent testing laboratory, contractor or engineer as specified in the Contract Documents. Check and report to the City, Construction Manager, Architect and testing inspector indicating defective materials or other problems. IOR may be requested to review invoices for testing to verify correct billing for testing. Maintain a daily log of inspection by testing lab. i. Report to the City, Construction Manager, and the Architect verbally and in writing: (1) poor performance by the contractor; (2) acts prejudicial to the City’s interest; and, (3) work performed or materials used which are not in conformance with the permit Contract Documents and building code. j. Accompany City personnel, Construction Manager, Architect and/or other consultants when any of them are observing construction work. Ensure any verbal instructions during field inspections are written in the Daily Report/Log for that day. k. Attempt to foresee methods or materials which will not be acceptable and immediately bring these facts to the contractor’s attention in order to avoid removal of work already in place. l. Assist Construction Manager to anticipate the contractor’s problems and review with City and Construction Manager anticipated schedules and work involved prior to the commencement of a new trade on the job. m. Sign Time & Material Request acknowledgements. n. Review Requests for Information (RFI’s), revisions, and Change Order Requests. o. Review submittals and deferred submittals. p. Attempt to foresee the need for all required tests and inspections. q. Review Progress Billing and As-Builts r. Join inspections by the Board of State and Community Corrections (BSCC) for the temporary holding facilities. s. Refuse to allow any related work to be installed until shop drawings, samples, and mock-ups have received final approval from the Architect. t. Collaborate with the City, Construction Manager and the Architect in the final inspection and project acceptance phase. u. Assist in the completion of LEED documentation as required. v. Assist in project close out documents as required. w. IOR will be required to utilize construction program management software. x. IOR shall keep at the project a copy of all applicable building codes and regulations necessary to perform required inspections and have ready access to City Guidelines and Procedures. Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 28  Packet Pg. 104 of 445  Professional Services Rev. Oct 16,2024 Page 17 of 26 EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): 1B. TASK ORDER NO.: 2. CONSULTANT NAME: 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________ 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE:  SERVICES AND DELIVERABLES TO BE PROVIDED  SCHEDULE OF PERFORMANCE  MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)  REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________ I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 29  Packet Pg. 105 of 445  Professional Services Rev. Oct 16,2024 Page 18 of 26 EXHIBIT B SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within timeline specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. Milestones 1. Inspector of Record Services through October 2025 2. Administrative Support through October 2025 Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.) The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement. Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 30  Packet Pg. 106 of 445  Professional Services Rev. Oct 16,2024 Page 19 of 26 EXHIBIT C COMPENSATION CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for each task set forth below. CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below, provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. BUDGET SCHEDULE REIMBURSABLE EXPENSES CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00. Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 31  Packet Pg. 107 of 445  Professional Services Rev. Oct 16,2024 Page 20 of 26 EXHIBIT C-1 SCHEDULE OF RATES CONSULTANT’s schedule of rates is as follows: Description Hourly Rate Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 32  Packet Pg. 108 of 445  Professional Services Rev. Oct 16,2024 Page 21 of 26 EXHIBIT D INSURANCE REQUIREMENTS CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN. REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY. II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING EMAIL: PURCHASINGSUPPORT@PALOALTO.GOV III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS: A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 33  Packet Pg. 109 of 445  Professional Services Rev. Oct 16,2024 Page 22 of 26 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO SENT TO THE FOLLOWING EMAIL: PURCHASINGSUPPORT@PALOALTO.GOV Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 34  Packet Pg. 110 of 445  Professional Services Rev. Oct 16,2024 Page 23 of 26 EXHIBIT E DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS (not applicable) Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 35  Packet Pg. 111 of 445  Professional Services Rev. Oct 16,2024 Page 24 of 26 EXHIBIT F CLAIMS FOR PUBLIC CONTRACT CODE SECTION 9204 PUBLIC WORKS PROJECTS The provisions of this Exhibit are provided in compliance with Public Contract Code Section 9204; they provide the exclusive procedures for any claims pursuant to Public Contract Code Section 9204 related to the Services performed under this Agreement. 1. Claim Definition. “Claim” means a separate demand by the Contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following: (A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by the City. (B) Payment by the City of money or damages arising from the Services performed by, or on behalf of, the Contractor pursuant to the Agreement and payment for which is not otherwise expressly provided or to which the Contractor is not otherwise entitled. (C) Payment of an amount that is disputed by the City. 2. Claim Process. (A) Timing. Any Claim must be submitted to City in compliance with the requirements of this Exhibit no later than fourteen (14) days following the event or occurrence giving rise to the Claim. This time requirement is mandatory; failure to submit a Claim within fourteen (14) days will result in its being deemed waived. (B) Submission. The Claim must be submitted to City in writing, clearly identified as a “Claim” submitted pursuant to this Exhibit, and must include reasonable documentation substantiating the Claim. The Claim must clearly identify and describe the dispute, including relevant references to applicable portions of the Agreement, and a chronology of relevant events. Any Claim for additional payment must include a complete, itemized breakdown of all labor, materials, taxes, insurance, and subcontract, or other costs. Substantiating documentation such as payroll records, receipts, invoices, or the like, must be submitted in support of each claimed cost. Any Claim for an extension of time or delay costs must be substantiated with schedule analysis and narrative depicting and explaining claimed time impacts. (C) Review. Upon receipt of a Claim in compliance with this Exhibit, the City shall conduct a reasonable review of the Claim and, within a period not to exceed 45 days from receipt, shall provide the Contractor a written statement identifying what portion of the Claim is disputed and what portion is undisputed. Upon receipt of a Claim, the City and Contractor may, by mutual agreement, extend the time period provided in this paragraph 2. (D) If City Council Approval Required. If the City needs approval from the City Council to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the Claim, and the City Council does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a Claim sent by registered mail or certified mail, return receipt requested, the City shall have up to three days following the next duly publicly noticed meeting of the City Council after the 45-day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion. Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 36  Packet Pg. 112 of 445  Professional Services Rev. Oct 16,2024 Page 25 of 26 (E) Payment. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement. If the City fails to issue a written statement, paragraph 3, below, shall apply. 3. Disputed Claims (A) Meet and Confer. If the Contractor disputes the City's written response, or if the City fails to respond to a Claim submitted pursuant to this Exhibit within the time prescribed, the Contractor may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the City shall schedule a meet and confer conference within 30 days for settlement of the dispute. Within 10 business days following the conclusion of the meet and confer conference, if the Claim or any portion of the Claim remains in dispute, the City shall provide the Contractor a written statement identifying the portion of the Claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 days after the City issues its written statement. (B) Mediation. Any remaining disputed portion of the Claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The City and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the Claim has been identified in writing by the Contractor. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate the disputed portion of the Claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the Claim remaining in dispute shall be subject to any other remedies authorized by the Agreement and laws. (i) For purposes of this paragraph 3.B, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section. (ii) Unless otherwise agreed to by the City and the Contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation, if any, under Public Contract Code Section 20104.4 to mediate after litigation has been commenced. 4. City’s Failure to Respond. Failure by the City to respond to a Claim from the Contractor within the time periods described in this Exhibit or to otherwise meet the time requirements of this Exhibit shall result in the Claim being deemed rejected in its entirety. A Claim that is denied by reason of the City's failure to have responded to a Claim, or its failure to otherwise meet the time requirements of this Exhibit, shall not constitute an adverse finding with regard to the merits of the Claim or the responsibility or qualifications of the Contractor. 5. Interest. Amounts not paid in a timely manner as required by this section shall bear interest at seven (7) percent per annum. Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 37  Packet Pg. 113 of 445  Professional Services Rev. Oct 16,2024 Page 26 of 26 6. Approved Subcontractor Claims. If an approved subcontractor or a lower tier subcontractor lacks legal standing to assert a Claim against the City because privity of contract does not exist, the Contractor may present to the City a Claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on his or her own behalf or on behalf of a lower tier subcontractor, that the Contractor present a Claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the Claim be presented to the City shall furnish reasonable documentation to support the Claim. Within 45 days of receipt of this written request, the Contractor shall notify the subcontractor in writing as to whether the Contractor presented the claim to the City and, if the Contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so. 7. Waiver of Provisions. A waiver of the rights granted by Public Contract Code Section 9204 is void and contrary to public policy, provided, however, that (1) upon receipt of a Claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) the City may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of Public Contract Code Section 9204, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section. Docusign Envelope ID: 2D4B0C62-BDE4-4D93-8F13-DA4AFFA98F5E Item 6 Attachment B - 4Leaf, Inc. Contract No. S26195542        Item 6: Staff Report Pg. 38  Packet Pg. 114 of 445  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: September 15, 2025 Report #:2504-4567 TITLE Approval of the Third Amended and Restated Purchase Order Number 4521000199 with Altec Industries, Inc., to Increase the Purchase Order Amount by $365,983 to a New Not-to-Exceed Amount of $1,073,075, including a Contingency Amount of $51,099, for the Purchase of Two 2025 Peterbilt 548 Hydraulic Digger Derricks; and Amend the FY 2026 Budget in the Vehicle Replacement and Maintenance Fund and the Electric Fund; CEQA Status – Exempt, Not a Project RECOMMENDATION Staff recommends that the City Council: 1. Approve and authorize the City Manager or their designee to amend Purchase Order No. 4521000199 with Altec Industries, Inc., to increase the previously approved Purchase Order amount by $365,983, for a new total not-to-exceed amount of $1,073,075, which includes a 5% contingency in the amount of $51,099 for unforeseen cost increases, for the purchase of two 2025 Peterbilt 548 Hydraulic Digger Derricks, utilizing a cooperative purchase agreement via Sourcewell, a cooperative purchasing agency serving government and not-for-profit organizations; and 2. Amend the Fiscal Year 2026 Budget Appropriation (by a 2/3 vote) for a. the Utilities Electric Fund by: i. Increasing the transfer to the Vehicle Replacement and Maintenance Fund in the amount of $365,983; and ii. Decreasing the Electric Distribution Reserve in the amount of $365,983; and b. the Vehicle Replacement and Maintenance Fund by: i. Increasing the transfer from the Utilities Electric Fund to the Scheduled Vehicle and Equipment Replacement Fiscal Year 2020 project (VR-20000) by $365,983; and ii. Increasing the expense appropriation for the Scheduled Vehicle and Equipment Replacement Fiscal Year 2020 project (VR-20000) by $365,983. Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 1  Packet Pg. 115 of 445  BACKGROUND On January 11, 2021, Council approved Purchase Order 4521000199 with Altec Industries, Inc. (Altec) in the amount of $633,866 for two new Digger Derrick Peterbilt crane trucks to replace units 7602 and 7603 (ID# 11582).1 The January 11, 2021 staff report describes the function of the trucks and the justification for their replacement. On November 29, 2021, Council approved Amendment #1 to Purchase Order 4521000199 with Altec Industries Inc., increasing the total by $33,202. This established a revised not-to-exceed amount of $667,068 for the procurement of two new trucks (ID #13652).2 This increase was primarily due to the rise in materials costs as a result of the Covid pandemic. On February 9, 2022, Altec reached out to Public Works Fleet staff again and indicated that the rise in materials costs had continued, and that Peterbilt had discontinued the 348 model, as originally specified, due to supply chain issues. Peterbilt replaced the 348 model with the more expensive 548 model and secured two 548 chassis build slots for the City. On June 6, 2022 Council approved Amendment #2 for Purchase Order 4521000199 providing a $40,024 increase to cover costs and resulting in a new total purchase cost of $707,092 (ID# 14193).3 Subsequent to Council approval, staff worked with the manufacturer through a variety of supply chain and model adequacy issues. As a result, staff recommends a modified purchase specification. While the City has established a long-term goal of fleet electrification, electric alternatives for this class of heavy-duty digger derrick trucks are not currently available on the market. The specialized functions of these trucks—such as supporting pole setting, line work, and heavy lifting—require significant payload and power capacity that electric technology has yet to meet. Leasing was considered as a potential short-term solution to avoid committing to a diesel purchase; however, due to limited availability of such specialized units and the high costs associated with long-term lease arrangements, leasing is not a viable option. Proceeding with this diesel purchase is therefore recommended to ensure service reliability while the City continues to monitor technological advancements in heavy-duty electric utility vehicles. ANALYSIS On July 22, 2025, the City received updated quotes for two Digger Derricks on the 548 chassis (Attachment A). The upgraded chassis is equipped with dual-rear axles to support the additional 1 City Council, January 11, 2021, Agenda Item #5, SR# 11582 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=81414 2 City Council, November 29, 2021; Agenda Item #5; SR# 13652 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=81620 3 City Council, June 6, 2022; Agenda Item #4; SR# 14193; https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=81850 Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 2  Packet Pg. 116 of 445  weight capacity needed. The $365,983 price increase is primarily a result of this chassis upgrade, but also includes increases related to enhanced equipment specifications on the newer DH50E and D3060E models, high volatility in material costs affecting manufacturing, and 24-month delivery timelines (incorporating inflationary adjustments). Additionally, a contingency of $51,099 is requested to mitigate unforeseen cost fluctuations given current market conditions. The revised not-to-exceed amount of $1,073,075 allows for the purchase of two properly sized chassis‘ to accommodate the addition of the DH50E and D3060E model derricks with utility bodies. Procurement Process Palo Alto Municipal Code section 2.30.360 (j) allows the use of cooperative purchasing agreements in lieu of conducting a competitive solicitation. Altec was awarded a contract by Sourcewell, a cooperative purchasing agency serving governmental, higher education, K-12 education, not-for-profit, tribal government, and other public agencies. Sourcewell conducted a Request for Proposals under which Altec Capital was an awarded vendor. Altec’s contract with Sourcewell was subsequently amended to allow Altec to increase its contract pricing. Staff recommends that Council approve the purchase order with Altec Industries, Inc. (Attachment B) for the purchase of two 2025 Peterbilt 548 Hydraulic Digger Derricks. Staff has considered alternatives and believes this remains the most cost-effective means of procuring the required equipment. If this request is not approved, the City will forfeit the two 2025 Peterbilt 548 chassis that are designated for this build. Staff would then have to request a new specification and quote for a later year model chassis and return to Council for approval. This would further increase the purchase cost and delay the delivery of these new vehicles. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 3  Packet Pg. 117 of 445  Additionally, Fleet staff review proposed vehicle replacements with the departments using the vehicles. ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 4  Packet Pg. 118 of 445  Quote Number:1512085 Opportunity Number:23081082 Sourcewell Contract #:110421-ALT Date:7/22/2025 REFERENCE ALTEC MODEL Sourcewell Price (A.) 1 DH50-E 50' Electric / Hydraulic Derrick, Rear Mount (DH50E)$5,451 (A1.) 1 RADIO RADIO REMOTE CONTROLS (Required with Platfrom)$16,414 2 BOSL Boom Out of Stow Indicator for Lower Boom $385 3 UHPP UHPP – Hydraulic pole puller. Used to pull poles for replacement.Comes with 7’ of 1/2” high tensile chain and a base. Powered bylower tool circuit at 8 gpm. $2,592 4 HRS HOSE REEL. Spring Loaded for Mounting 25’ Conductive Hoses with HTMA Quick Couplings that Come with the Lower Tool Circuit. When it is an available option, Lower Tool Circuit Must be Ordered Separately. $2,088 5 POP1 Plastic Outrigger Pad, 24" x 24" x 1" (Pair)$597 6 SPOT4 SIX (6) POINT STROBE SYSTEM (LED)$1,220 7 DLB2 Directional Light Bar (Amber, 42"L, Super-LED)$2,254 8 SPOT6 Remote Spot Light, LED, Permanent Mount, With Wireless Dash Mounted Controls And Programmable Wireless Remote $1,066 PSWI2 Inverter with minimum 3000W 120V @ 25A pure sine wave output, hardwired to outlets and 12VDC input.$3,766 BATSTOR Deep Cycle Auxiliary Battery for Vented Applications & Remote Steel Enclosure $2,154 VRI 120 Volt GFCI Receptacle, Includes Weather-Resistant Enclosure (3)$1,095 VCAM Backup Camera System $1,313 SOURCEWELL OPTIONS TOTAL:$370,532 (B.) 1 UNIT Custom Unit Options $13,151 2 UNIT & HYDRAULIC ACC Unit/Hydraulic Custom options $8,163 3 BODY Custom body ILO standard body $27,938 4 BODY & CHASSIS ACC Custom body & chassis accessories $10,867 5 ELECTRICAL Custom electrical options $6,223 6 FINISHING Paint, Non-skid, Inbound Freight, & Inspection $25,436 7 CHASSIS MY27 Peterbilt 548 $55,095 8 OTHER $0 OPEN MARKET OPTIONS TOTAL:$146,873 SUB-TOTAL FOR UNIT/BODY/CHASSIS:$517,405.00 Delivery to Customer:$715.00 Estimated Taxes (Delivery non-taxable): TBD FET:TBD CA Doc/Admin/Tire Fees:$542.50 Extended Warranty:$12,160.00 Sentry Training $4,552.96 BUILD LOCATION: TBD WARRANTY: Standard Altec Warranty for Aerials and Derricks - One (1) year parts warranty One (1) year labor warranty Ninety (90) TRADE-IN:Please ask your Altec Account Manager for more information CHASSIS: Per Altec Commercial Standard DELIVERY: No later than ___24__months ARO, FOB Customer Location TERMS: Net 30 days BEST VALUE: Altec boasts the following "Best Value" features: Altec ISO Grip Controls for Extra Protection, Only Lifetime Warranty on Structural Components in Industry, Largest Service Network in Industry (Domestic and Overseas), Altec SENTRY Web/CD Based Training, Dedicated/Direct Gov't Sales Manager, In-Service Training with Every Order. TO ORDER: To order, please contact the Altec Account Manager listed above. **Pricing valid for 45 days** NOTES PAINT COLOR: White to match chassis, unless otherwise specified Quoted by: Allyson Day Altec Account Manager: Michael Russell Email: allyson.day@altec.com PRICING: Altec will make every effort to honor this quotation, subject to the following provisions. Prices for equipment with production start dates 12 months and beyond are budgetary only due to irregular cost inflation and market volatility. These prices will be reviewed based on market conditions and confirmed closer to the production date. Quotes and orders with chassis model year beyond the current open order bank, should be considered estimates only. Altec's turn-key pricing is subject to change in accordance with chassis pricing received from the OEM. Chassis model year, specifications and price will be reviewed and confirmed when specific model year information becomes available from the OEM and that chassis price difference will be passed through to the customer. Altec Industries, Inc. SOURCEWELL OPTIONS ON CONTRACT (Unit) SOURCEWELL OPTIONS ON CONTRACT (General) OPEN MARKET ITEMS (Customer Requested) DH50 Quoted for: City of Palo Alto Customer Contact: Danitra Bahlman Phone: / Email: 650-496-5920 / danitra.bahlman@cityofpaloalto.org City of Palo Alto DH50E Sourcewell Q1512085-7- Peterbilt Chassis Item 7 Attachment A - Sourcewell Quote        Item 7: Staff Report Pg. 5  Packet Pg. 119 of 445  Quote Number:1666173 Opportunity Number:24118673 Sourcewell Contract #:110421-ALT Date:7/22/2025 REFERENCE ALTEC MODEL Sourcewell Price (A.) 1 D3060E-JIB 10ft. Material Handling Jib $1,584 (A1.) 1 BOSL Boom Out of Stow Indicator for Lower Boom $385 2 BOSU Boom Out of Stow Inficator for Upper Boom $385 3 MCR1 JIB ADAPTER. Jib adapter is for Altec 4.1" x 4.1" Square Jibs (Square to Round Conversion)$871 4 UA18 18” Diameter Dirt Auger Full Flight $1,912 5 UHPP UHPP – Hydraulic pole puller. Used to pull poles for replacement.Comes with 7’ of 1/2” high tensile chain and a base. Powered bylower tool circuit at 8 gpm. $2,592 6 RBS Rubber Belted Step $546 7 POP1 Plastic Outrigger Pad, 24" x 24" x 1" (Pair x2)$1,194 8 CH-R Cone Holder,Ring Style (qty 2)$628 9 SPOT4 SIX (6) POINT STROBE SYSTEM (LED)$1,220 10 DLB2 Directional Light Bar (Amber, 47"L, Super-LED)$2,254 11 SPOT6 Remote Spot Light, LED, Permanent Mount, With Wireless Dash Mounted Controls And Programmable Wireless Remote $1,066 12 VCAM Backup Camera System $1,313 13 PSWI2 Inverter with minimum 3000W 120V @ 25A pure sine wave output, hardwired to outlets and 12VDC input.$3,766 14 BATSTOR Deep Cycle Auxiliary Battery for Vented Applications & Remote Steel Enclosure (2)$4,308 15 VRI 120 Volt GFCI Receptacle, Includes Weather-Resistant Enclosure (3)$1,095 16 PTO-HM PTO Hour Meter Digital with 10,000 Hour Display $182 SOURCEWELL OPTIONS TOTAL:$379,042 (B.) 1 UNIT Custom unit options $8,130 2 UNIT & HYDRAULIC ACC Unit/Hydraulic Custom options $11,278 3 BODY Custom body ILO preferred body $15,244 4 BODY & CHASSIS ACC Custom body & chassis accessories $6,336 5 ELECTRICAL Custom electrical options $4,879 6 FINISHING Paint, non-skid, inbound freight, & inspection $27,251 OPEN MARKET OPTIONS TOTAL:$94,141 SUB-TOTAL FOR UNIT/BODY/CHASSIS:$473,183.00 Delivery to Customer:$715.00 Estimated Taxes (Delivery non-taxable): TBD FET:TBD CA Doc/Admin/Tire Fees:$542.50 Extended Warranty: $12,160.00 Altec Industries, Inc. SOURCEWELL OPTIONS ON CONTRACT (Unit) SOURCEWELL OPTIONS ON CONTRACT (General) OPEN MARKET ITEMS (Customer Requested) D3060E Quoted for: City of Palo Alto Customer Contact: Danitra Bahlman Phone: / Email: 650-496-5920 / danitra.bahlman@cityofpaloalto.org **Pricing valid for 45 days** NOTES PAINT COLOR: White to match chassis, unless otherwise specified Quoted by: Allyson Day Altec Account Manager: Michael Russell Email: allyson.day@altec.com PRICING: Altec will make every effort to honor this quotation, subject to the following provisions. Prices for equipment with production start dates 12 months and beyond are budgetary only due to irregular cost inflation and market volatility. These prices will be reviewed based on market conditions and confirmed closer to the production date. Quotes and orders with chassis model year beyond the current open order bank, should be considered estimates only. Altec's turn-key pricing is subject to change in accordance with chassis pricing received from the OEM. Chassis model year, specifications and price will be reviewed and confirmed when specific model year information becomes available from the OEM and that chassis price difference will be passed through to the customer. BUILD LOCATION: TBD WARRANTY: Standard Altec Warranty for Aerials and Derricks - One (1) year parts warranty One (1) year labor warranty Ninety (90) TRADE-IN:Please ask your Altec Account Manager for more information CHASSIS: Per Altec Commercial Standard DELIVERY: No later than ___24__months ARO, FOB Customer Location TERMS: Net 30 days BEST VALUE: Altec boasts the following "Best Value" features: Altec ISO Grip Controls for Extra Protection, Only Lifetime Warranty on Structural Components in Industry, Largest Service Network in Industry (Domestic and Overseas), Altec SENTRY Web/CD Based Training, Dedicated/Direct Gov't Sales Manager, In-Service Training with Every Order. TO ORDER: To order, please contact the Altec Account Manager listed above. City of Palo Alto Sourcewell - D3060E -Q1666173-2 Item 7 Attachment A - Sourcewell Quote        Item 7: Staff Report Pg. 6  Packet Pg. 120 of 445  "This Third Amended and Restated Purchase Order with Altec Industries, Inc., effective as of 09/18/25 SR#2504-4567 hereby amends and restates the Amended and Restated Purchase Order No. 4521000199 dated 12/06/2021 with Altec Industries, Inc. This Third Amended and Restated Purchase Order hereby supersedes that Amended and Restated Purchase Order dated 05/23/2022." Item 10 to add 191,765 Value: $311,494.00 New Value: $503,259 Item 40 to add $142,990 Old Value $311,494.00 New Value: $454,484 Item 80 to add $31,229. Old Value: $19,870 New Value: $51,099 New NTE: $1,073,076 "This Second Amended and Restated Purchase Order with Altec Industries, Inc., effective as of 05/23/2022, hereby amends and restates the Amended and Restated Purchase Order No. 4521000199 dated 12/06/2021 with Altec Industries, Inc. This Second Amended and Restated Purchase Order hereby supersedes that Amended and Restated Purchase Order dated 12/06/2021." "This Purchase Order is issued under NJPA contract#012418-ALT." "This Purchase Order hereby attaches and incorporates into this Purchase Order the following attachments by reference as though fully set forth herein: - NJPA Contract # 012418-ALT Vendor Address ALTEC INDUSTRIES INC 325 INDUSTRIAL WAY DIXON CA 95620 Tel: 707-678-0800 Fax: 707-678-1038 Bill To: City of Palo Alto Account Payable P.O.Box 10250 Palo Alto, CA 94303 Ship To: Equipment Management Division City of Palo Alto 3201 East Bayshore Road Palo Alto CA 94303 Item Material/Description Quantity UM Net Price Net Amount ______________________________________Chief Procurement Officer THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGESPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order.DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate onall documents. Complete packing lists must accompany each shipment.INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Purchase Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number 4521000199 Date 11/19/2020 Vendor No.100455 Payment Terms Payment Due 30 days FOB Point F.O.B. Palo Alto Ship via Vendor to ship bestway Required Date 06/30/2022 Buyer/Phone Renee Howard / 650-496-5900 Email renee.howard@cityofpaloalto.org DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 1 of 4 Item 7 Attachment B - Purchase Order        Item 7: Staff Report Pg. 7  Packet Pg. 121 of 445  - NJPA Contract 5th year extension - NJPA Contract # 012418-ALT # Contract Acceptance and Award - 012418-ALT Price Information - Quote Number: 694090-1 Dated 03/14/2022 - Contract amendment to NJPA contract #012418-ALT,dated 9-14-2021 - City of Palo Alto Purchase Order Terms and Conditions(Goods)" 0010 50' Derrick w crane Model 548 - 7604 503,259 USD 1.00 503,259.00 Purchase new 2022 Altec Hydraulic Derrick Digger w Crane Sourcewell Contract: 012418-ALT Quote #: 694090-1 dated 3/14/2022 SUB-TOTAL FOR UNIT/BODY/CHASSIS: $287,399 + Peterbilt Chassis Surcharge 2021: $4,960 & Altec Material Surcharge: $9,924 + Peterbilt Mandated Model Update 348 to 548: $7,951 - Chasis Simplication: $2,240 + Peterbilt Chassis Surcharge 2022: $3,500 Delivery: 12-15 months after receipt of PO new unit 7604 (replaces 7602) Utils-Elec Unit price not to exceed $687,221 Vendor Address ALTEC INDUSTRIES INC 325 INDUSTRIAL WAY DIXON CA 95620 Tel: 707-678-0800 Fax: 707-678-1038 Bill To: Equipment Management Division City of Palo Alto 3201 East Bayshore Road Palo Alto CA 94303 Ship To: Equipment Management Division City of Palo Alto 3201 East Bayshore Road Palo Alto CA 94303 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Chief Procurement Officer THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGESPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order.DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate onall documents. Complete packing lists must accompany each shipment.INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Purchase Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number 4521000199 Date 11/19/2020 Vendor No.100455 Payment Terms Payment Due 30 days FOB Point F.O.B. Palo Alto Ship via Vendor to ship bestway Required Date 06/30/2022 Buyer/Phone Renee Howard / 650-496-5900 Email renee.howard@cityofpaloalto.org DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 2 of 4 Item 7 Attachment B - Purchase Order        Item 7: Staff Report Pg. 8  Packet Pg. 122 of 445  Project Manager: Danitra Bahlman 650-496-5920 FLEET MANAGER: Danitra Bahlman 650-496-5920 Danitra.Bahlman@cityofpaloalto.org SEND INVOICE TO: EQUIPMENT MANAGEMENT 0020 DMV docs - 7604 125 USD 1.00 125.00 Vendor shall handle DMV registration 0030 delivery 3,568 USD 1.00 3,568.00 0040 50' Derrick w crane Model 548 - 7606 454,484 USD 1.00 454,484.00 Purchase new 2022 Altec Hydraulic Derrick Digger w Crane Sourcewell Contract: 012418-ALT Quote #: 694090-1 dated 3/14/2022 SUB-TOTAL FOR UNIT/BODY/CHASSIS: $287,399 + Peterbilt Chassis Surcharge 2021: $4,960 & Altec Material Surcharge: $9,924 + Peterbilt Mandated Model Update 348 to 548: $7,951 - Chasis Simplication: $2,240 + Peterbilt Chassis Surcharge 22: $3,500 Vendor Address ALTEC INDUSTRIES INC 325 INDUSTRIAL WAY DIXON CA 95620 Tel: 707-678-0800 Fax: 707-678-1038 Bill To: Equipment Management Division City of Palo Alto 3201 East Bayshore Road Palo Alto CA 94303 Ship To: Equipment Management Division City of Palo Alto 3201 East Bayshore Road Palo Alto CA 94303 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Chief Procurement Officer THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGESPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order.DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate onall documents. Complete packing lists must accompany each shipment.INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Purchase Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number 4521000199 Date 11/19/2020 Vendor No.100455 Payment Terms Payment Due 30 days FOB Point F.O.B. Palo Alto Ship via Vendor to ship bestway Required Date 06/30/2022 Buyer/Phone Renee Howard / 650-496-5900 Email renee.howard@cityofpaloalto.org DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 3 of 4 Item 7 Attachment B - Purchase Order        Item 7: Staff Report Pg. 9  Packet Pg. 123 of 445  Delivery: 12-15 months after receipt of PO new unit 7606 (replaces 7603) Utils-Elec 0050 DMV docs - 7606 125 USD 1.00 125.00 Vendor shall handle DMV registration 0060 delivery 3,568 USD 1.00 3,568.00 0070 Sales Tax 56,848 USD 1.00 56,848.00 SUBTOTAL $687,221.00 0080 contingency 51,099 USD 1.00 51,099.00 Contingency of $19,870 for any unexpected increases to price. -------------------------Sub-Total 1,073,076.00 *** ORDERING VIA EMAIL *** **** PRICE HAS BEEN QUOTED **** Vendor Address ALTEC INDUSTRIES INC 325 INDUSTRIAL WAY DIXON CA 95620 Tel: 707-678-0800 Fax: 707-678-1038 Bill To: Equipment Management Division City of Palo Alto 3201 East Bayshore Road Palo Alto CA 94303 Ship To: Equipment Management Division City of Palo Alto 3201 East Bayshore Road Palo Alto CA 94303 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Chief Procurement Officer Total 1,073,076.00 THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGESPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order.DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate onall documents. Complete packing lists must accompany each shipment.INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Purchase Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number 4521000199 Date 11/19/2020 Vendor No.100455 Payment Terms Payment Due 30 days FOB Point F.O.B. Palo Alto Ship via Vendor to ship bestway Required Date 06/30/2022 Buyer/Phone Renee Howard / 650-496-5900 Email renee.howard@cityofpaloalto.org DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 4 of 4 Item 7 Attachment B - Purchase Order        Item 7: Staff Report Pg. 10  Packet Pg. 124 of 445  CITY OF PALO ALTO GDS Rev. 06/22/2016 TERMS AND CONDITIONS OF PURCHASE PAGE 1 OF 3 ACCEPTANCE/AGREEMENT: City of Palo Alto (City) reserves the right to reject any and all quotations, to waive any informalities, and, unless otherwise specified by Seller, to accept any item in a quotation. By accepting or filing this Purchase Order (P.O.), Seller agrees to the terms and conditions herein which shall prevail over any inconsistent provision in any form or other paper submitted by Seller. All shipments or services performed shall be deemed to have been made pursuant hereto. No other terms are acceptable. This P.O., including all specifications and drawings, shall constitute the entire agreement between the parties unless modified in writing by City. CITY'S PROPERTY: Seller agrees that the information, tools, jigs, dies, or materials, and drawings, patterns, and specification supplied or paid for by City shall be and remain City property and shall be held by Seller for City unless directed otherwise. Seller shall account for such items and keep them protected, insured, and in good working conditions without expense to City. DELIVERY: The terms of delivery are as stated on the reverse side hereof. The obligation of Seller to meet the delivery dates, specifications, and quantities set forth herein is of the essence of this P.O. No boxing, packing, or cartage charge will be allowed unless authorized by this P.O. Deliveries are to be made both in quantities and at times specified herein or, if not, such quantities and times are specified pursuant to City's written instruction. Items not delivered may be canceled without penalty to City. Shipments in greater or lesser quantity that ordered may be returned at Seller's expense unless written authorization is issued by City. PRICES: The price which Seller charges in filling this P.O. shall not be higher than Seller's most recent quote or charge to City for such materials, supplies, services and/or installations unless City expressly agrees otherwise in writing. Notwithstanding the prices set forth the P.O. City shall receive the benefit of any general reduction in the price of any item(s) listed herein which may be made by Seller at any time prior to the last delivery of goods or services covered by this P.O. TERMINATION: City shall have the right to terminate this P.O. or any part thereof upon ten (10) days notice in writing to Seller. (1)Without Cause. City may terminate all or any part of this P.O. without cause. Any claim by Seller for damages due to termination without cause must be submitted to City within thirty (30) days after effective date of termination. (2)For Cause. If Seller fails to make any delivery in accordance with the agreed delivery date, delivery schedule, or otherwise fails to observe or comply with any of the other instructions, terms, conditions or warranties applicable to this P.O., City may, in addition to any other right or remedy provided by this P.O. or by law, terminate all or any part of this P.O. in writing without any liability of City with respect to Seller at any time during the term of this P.O. In the event of termination for cause, City may purchase supplies or services elsewhere on such terms or in such manner as City may deem appropriate and Seller shall be liable to City for any cost and other expenses incurred by City, which is charged to City. CHANGES: City shall have the right at any time by written notice via P.O. Change Order to Seller to make changes in the specifications, the quantity of items called for, delivery schedules, and requirements covering testing, packaging, or destination. Any claim by Seller for adjustment under this clause shall be deemed waived unless made in writing with then (10) days after receipt by Seller of notice of such change. Price increases or extensions of time for delivery shall not be binding on City unless evidenced by a P.O. Change Order issued by City's Purchasing Manager. INSPECTION: City shall have the right to inspect and approve or reject any materials, supplies, services and/or installations upon arrival of notice of completion prior to payment without regard to the manner of shipment, completion, or any shipping or price terms contained in this P.O. All materials, supplies, services and/or installations must be furnished as specified. (1) Defective, damaged, and nonconforming materials and/or supplies may be returned for credit or refund, at Seller's expense. City may charge Seller for all expenses of unpacking, examining, repacking and reshipping of such materials and/or supplies. (2) Defective, incorrect and nonconforming services and/or installations may be returned for credit or refund, at Seller's expense.All of the above notwithstanding prior payment by City. WARRANTY: Seller expressly warrants that all materials, supplies, services and/or installations covered by this P.O. shall: (1) conform to the specifications, drawings, samples, or other descriptions specified by City or if none are so specified, to Seller's standard specification or the standards of the ASTM or ANSI or other national standard organizations; (2) be new and unless specified to the contrary on the face hereof, will be free from defects in material and workmanship and will be free of all liens and encumbrances and will conform to any affirmation of facts made on the container or label; (3) be adequately contained, packaged, marked, labeled and/or provided in compliance with all applicable federal and state laws and regulations (including materials deemed hazardous); (4) be performed within the rules and regulations of the Occupational Safety and Health Act of 1970 (as amended); (5) be produced or transferred or disposed of as required by federal and state laws and regulation under the conditions of the Toxic Substances Control Act; the Hazardous Materials Control and Hazardous Waste Regulations; and other toxic laws and programs. Seller further expressly agrees to protect, indemnify, and hold harmless City, its employees and agents for any loss, damage, fine, liability, fee (including reasonable charges and fees) or expense arising in connection with or resulting from Seller's failure to furnish materials or supplies or perform services that conform with any warranty contained herein. (6) have good marketable title. GOVERNING LAW: This P.O. shall be governed by the laws of the State of California. INDEPENDENT CONTRACTOR, INSURANCE: Seller certifies, by acceptance, that he/she is an independent contractor. Seller shall protect, defend, and indemnify and hold City harmless against all damages, liability, claims, losses and expenses (including attorney's fees) arising out of , or resulting in any way from Seller's negligence in providing the goods or services purchased hereunder or from any act or omission of Seller, its agents, employees, or subcontractors, Seller shall maintain such public liability insurance, including contractual liability, automobile and general public liability, (including non-owned automobile liability) Worker's Compensation, and employer's liability insurance as well adequately protect City against such damage, liabilities, claims, losses, and expenses (including attorney's fees). Seller agrees to submit certificates of insurance, evidencing its insurance coverage when requested by City. EQUAL OPPORTUNITY CLAUSE: By acceptance of this P.O., Seller certifies it is in compliance with the Equal Opportunity Clause required by Executive Order 11246, as amended, and the Palo Alto Municipal Code, as amended, including Affirmative Action Compliance Programs for Veterans; Handicapped; and Minority Business, and other equal opportunity programs. FORCE MAJEURE: City may delay delivery or acceptance occasioned by causes beyond its control. Seller shall hold such materials, supplies, services and or installations at the direction of City and shall deliver them when the cause affecting the delay has been removed. City shall be responsible only for Seller's direct additional costs in holding the goods or delaying performance of this P.O. and City's request. Seller shall also be excused if delivery is delayed by unforeseen events beyond its reasonable control, provided Seller notifies City as soon as they occur. City may cancel this P.O. if such delay exceeds thirty (30) days from the original delivery date. Seller shall use its best efforts to grant preference to this P.O. over those of other customers, which were placed after this P.O. AUTHORITY OF AGENT OR FACTOR: Seller represents that, whenever it executes this P.O. on behalf of a third party as an agent or factor, it shall disclose the existence of the agency or factor relationship to City. Seller shall be deemed to have the legal authority to enter into this P.O. with City on behalf of the third party. INTERPRETATION OF CONTRACT DOCUMENTS: In the event of a conflict between the terms of this P.O. and the attached specification with respect to any obligation of Seller, the provision which impose the greater obligations upon Seller shall prevail. Item 7 Attachment B - Purchase Order        Item 7: Staff Report Pg. 11  Packet Pg. 125 of 445  CITY OF PALO ALTO GDS Rev. 06/22/2016 TERMS AND CONDITIONS OF PURCHASE PAGE 2 OF 3 ENVIRONMENTALLY PREFERRED PURCHASING REQUIREMENTS: Seller agrees to comply with the City's Environmentally Preferred Purchasing Requirements. (1)Hazardous Waste: Seller shall take-back all spent or otherwise discarded hazardous products sold to the City by the Seller if the spent or discarded products are classified as hazardous or universal wastes by State or Federal regulations. Seller shall provide convenient collection and recycling services (or disposal services if recycling technology is unavailable) for all universal wastes, which originate from the Vendor. Hazardous waste manifests or bills of lading must be provided to City staff upon request. Recycling and reuse of hazardous wastes must occur within the United States. Universal waste lists and information are available www.dtsc.ca.gov/HazardousWaste/UniversalWaste/. A hazardous waste list is available at http://www.calrecycle.ca.gov/LEA/Training/wasteclass/yep.htm. Additional information can be obtained by contacting the City of Palo Alto Hazardous Waste Department at (650) 496-6980. (2)Zero Waste and Pollution Prevention: Per Palo Alto City Council policy, the City is targeting to achieve Zero Waste by 2021. The City must also meet Municipal Regional Stormwater Permit requirements requiring no visible impact from litter via stormdrains by 2022. To that end the vendor, manufacturer and or contractor must individually or collaboratively comply with the waste reduction, reuse and recycling requirements of the City's Zero Waste and Pollution Prevention Programs. Seller acknowledges and agrees that if Seller fails to fully and satisfactorily comply with these requirements, the City will suffer, as a result of Seller's failure, substantial damages which are both extremely difficult and impracticable to ascertain. Therefore, the Seller agrees that in addition to all other damages to which the City may be entitled, in the event Seller fails to comply with the below requirements Seller shall pay City as liquidated damages the amounts specified below. The liquidated damage amount is not a penalty but considered to be a reasonable estimate of the amount of damages City will suffer as a result of such non-compliance. Sellers shall adhere to the standard that all printed materials provided to the City that are generated from a personal computer and printer including, proposals, quotes, invoices, reports, and public education materials shall be double-sided, printed on a minimum of 30% post-consumer content paper or greater unless otherwise approved by the City's Environmental Services Division (650) 329-2117. Materials printed by a professional printing company shall be a minimum of 30% post-consumer material or greater and printed with vegetable based inks. Liquidated damages of $30 per document will be assessed by City for failure to adhere to this requirement. All paper packaging must be Forest Stewardship Council (FSC) Certified. All primary, secondary and shipping (tertiary) packaging be minimized to the maximum extent feasible while protecting the product being shipped. All primary, secondary and shipping packaging shall be recyclable in the City's recycling program. A complete list of items accepted for recycling are found at www.zerowastepaloalto.org or by calling (650) 496-5910. If any portion is received that does not meet this requirement, liquidated damages of $235 or a minimum of $50 if the combined product and shipping cost is $235 or less will be assessed by City for failure to adhere to this requirement. Expanded foam plastics (e.g., foam or cushion blocks, trays, packing 'peanuts'), such as but not limited to polystyrene (aka Styrofoam[tm]), polypropylene, or polyurethane shall not be used as primary, secondary or tertiary/shipping packaging with the following exceptions: o Primary packaging made from these materials may be used if the vendor, manufacturer, contractor individually or collaboratively does one of the following: (a) takes the material back at the City's convenience and at no cost to the City, or (b) pays the City of Palo Alto's disposal costs via payment of liquidated damages of $235, or a minimum of $50 if the combined product and shipping cost is $235 or less. o Bioplastics that meet ASTM D6400 standards for compostability may be accepted with approval from the City's Environmental Services Division subject to local municipal compost facility requirements. o If approved by the City's Environmental Services Division, a packaging requirement may be waived if no other viable packaging alternative exists. Reusable/returnable pallets shall be used and taken back by the Seller, at no additional cost to the City. Seller shall provide documentation upon request ensuring reuse of pallets and/or recycling of broken pallets. Liquidated damages of $262 or a minimum of $50 if the combined product and shipping cost is $262 or less will be assessed by City for failure to adhere to this requirement. (3)Energy and Water Efficiency: Seller shall provide products with an ENERGY STAR, Water Sense or State of California standard rating, whichever is more efficient, when ratings exist for those products. A life cycle cost analysis shall be provided to the City upon request and shall at minimum include: first cost, operating costs, maintenance costs, and disposal costs. Contacts for additional information about City of Palo Alto Hazardous Waste, Zero Waste and Utilities programs: Hazardous Waste Program (Public Works) (650) 496-6980 Zero Waste Program (Public Works) (650) 496-5910 Watershed Protection (650) 329-2117 Energy Efficiency (650) 496-2244 (4)Liquidated Damages: Seller agrees that failure to comply with the City's Environmentally Preferred Purchasing Requirements will result in Liquidated Damages, according to the table marked Liquidated Damages on page 3 of this P.O. Item 7 Attachment B - Purchase Order        Item 7: Staff Report Pg. 12  Packet Pg. 126 of 445  Event of Non-Performance Recycled Paper Use Failure to use 30% recycled content paper Recyclable Packaging Materials Failure of Seller to use secondary and shipping packaging that is recyclable in the City's recycling program. Expanded Foam Plastics Unapproved use of expanded foam plastics for secondary or shipping packaging Pallet Use Failure of Seller to take-back and reuse pallets, recycling only broken pallets, at no additional cost to the City. Acceptable Performance Level (Allowed events per Fiscal Year) 1 1 0 1 Liquidated Damage Amount $30 per each document $235 or a minimum of $50 if the combined product and shipping cost is $250 or less will be incurred if this is not adhered to. $235 or a minimum of $50 if the combined product and shipping cost is $235 or less $262 or a minimum of $50 if the combined product and shipping cost is $2 or less CITY OF PALO ALTO GDS Rev. 06/22/2016 TERMS AND CONDITIONS OF PURCHASE NONCOMPLIANCE WITH ENVIRONMENTALLY PREFERRED PURCHASING REQUIREMENTS, LIQUIDATED DAMAGES: The following table lists the events that constitute breaches of the Agreement's standard of performance warranting the imposition of liquidated damages; the acceptable performance level, and the amount of liquidated damages for failure to meet the contractually required standards of performance. PAGE 3 OF 3 Item 7 Attachment B - Purchase Order        Item 7: Staff Report Pg. 13  Packet Pg. 127 of 445  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: September 15, 2025 Report #:2504-4566 TITLE FIRST READING: Adoption of Four Ordinances, as Recommended by the Retail Committee, to Amend and Reorganize Stormwater and Wastewater Management Requirements by Amending PAMC Chapter 16.09 (Sewer Use Ordinance), Amending Chapter 16.11 (Stormwater Pollution Prevention), Adding New Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease), and Adding New Chapter 16.66 (Hauled Liquid Waste); Adoption of Two Resolutions Establishing Regulations to Implement PAMC Chapters 16.11 and 16.13; Adoption of a Resolution Amending and Restating the Administrative Penalty Schedule and Civil Penalty Schedules for Certain Violations of the PAMC; CEQA Status – Exempt under CEQA Guidelines Section 15308 RECOMMENDATION The Retail Committee and Staff recommend that City Council adopt the: 1. Ordinance amending PAMC Chapter 16.09 (Sewer Use Ordinance) (Attachment B); 2. Ordinance amending PAMC Chapter 16.11 (Stormwater Pollution Prevention) (Attachment C); 3. Resolution creating regulations to implement PAMC Chapter 16.11 (Attachment D); 4. Ordinance adding new PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease) (Attachment E); 5. Resolution creating regulations to implement PAMC Chapter 16.13 (Attachment F); 6. Ordinance adding new PAMC Chapter 16.66 (Hauled Liquid Waste) (Attachment G); and 7. Resolution amending and restating the Administrative Penalty Schedule and Civil Penalty Schedules for Certain Violations of the PAMC (Attachment H). Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 1  Packet Pg. 128 of 445  EXECUTIVE SUMMARY The City’s Public Works Watershed Protection team oversees regulatory compliance for sewer use and stormwater permits, including enforcing the San Francisco Bay Regional Water Quality Control Board permit requirements for businesses, industry, and residents to prevent illicit discharges of pollutants into creeks and the San Francisco Bay. The City’s requirements for stormwater and wastewater management are currently codified in Chapters 16.09 (Sewer Use Ordinance) and 16.11 (Stormwater Pollution Prevention) of the PAMC. This item primarily consists of edits to simplify and reorganize existing requirements into four separate PAMC chapters for easier use and reference, updates that formalize existing City processes and align with new state regulations and permit requirements, and recommended changes based on staff experience and best practices in the field of stormwater and FOG management. Proposed major and new changes to each PAMC Chapter are summarized in the Analysis section below, and additional detail is captured in Attachment A: Summary of Proposed Changes to all Chapters. Those items are identified in this report. Finally, staff has compiled regulatory handbooks to help local businesses who are required to comply with regulations in Chapters 16.11 and 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of FOG). Public feedback was solicited through extensive outreach and five public meetings. Staff also presented the proposed Ordinance changes at the June 18, 2025 Retail Committee meeting. Several comments were received from public meetings and during the public comment process that resulted in clarifying edits to the proposed revisions for Chapter 16.09 (Sewer Use Ordinance); no significant comments were received on the other proposed PAMC Chapters. On August 20, 2025 the Retail Committee heard this item and unanimously recommended that Council adopt the Staff recommendation.1 The City of Palo Alto owns and operates the Regional Water Quality Control Plant (RWQCP) that treats wastewater collected from Palo Alto, Mountain View, Stanford University, Los Altos, Los Altos Hills, and the East Palo Alto Sanitary District. Wastewater from these jurisdictions is treated by the RWQCP prior to discharge to the San Francisco Bay (Bay). Stormwater in Palo Alto flows directly to creeks and/or the Bay without treatment. Both wastewater and stormwater discharges are regulated by the United States Environmental Protection Agency via National Pollutant Discharge Elimination System (NPDES) permits issued by the San Francisco Bay Regional Water Quality Control Board (Water Board) and associated regulations. In addition, management of fats, oils, and grease (FOG) is also regulated by the California Plumbing Code. The City is charged with enforcing permit and other regulatory requirements to 1 Retail Committee voted (3) in support of recommending City Council approval; https://www.paloalto.gov/Departments/City-Clerk/City-Council-Committees/Retail-Ad-Hoc-Committee Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 2  Packet Pg. 129 of 445  keep pollution from entering the receiving waters through the storm drain and sanitary sewer systems. 3 Stormwater pollution prevention requirements are captured in both the existing Sewer Use Ordinance and PAMC Chapter 16.11 (Stormwater Pollution Prevention).4 Updates to these PAMC Chapters are required at this time to ensure City compliance with current state and federal regulations and best practices in the fields of stormwater and FOG management, to codify existing City practices, and to improve clarity and organization of the various requirements in the PAMC. ANALYSIS Amended PAMC Chapter 16.09: Sewer Use Ordinance; Amended PAMC Chapter 16.11: Stormwater Pollution Prevention; Proposed new PAMC Chapter 16.13: Requirements for Food Facilities Related to Water Pollution Prevention and Management of FOG; and Proposed new PAMC Chapter 16.66: Hauled Liquid Waste. Removal of existing requirements for stormwater pollution prevention (now in PAMC 16.11), FOG (now in PAMC 16.13), and hauled liquid waste (now in PAMC 16.66); Incorporation of requirements and recommendations from a 2022 RWQCP Pretreatment Program audit conducted by the State Water Resources Control Board; Incorporation of recommendations of the United States Environmental Protection Agency’s Model Pretreatment Ordinance that meets federal requirements; and 3 Palo Alto Municipal Code, Chapter 16.09, Sewer Use Ordinance, July 22, 2010; https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-71241#JD_Chapter 16.09 4 Palo Alto Municipal Code, Chapter 16.11, Stormwater Pollution Prevention Ordinance, July 4, 2019; https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-72096 Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 3  Packet Pg. 130 of 445  Clarification, consolidation, and reorganization of text to codify current City implementation practices and enhance use. Significant changes from the current PAMC Chapter 16.09 include: Addition of ability of City to use general discharge permits in place of individual discharge permits under proposed Section 16.09.075, Discharge Permit Required; Addition of provisions for federal requirements, non-significant categorical industrial users, and electronic reporting under proposed Section 16.09.120, Reporting & Certification Requirements for Industrial Users; Replacement of five-day reporting requirement with a 30-day advance notice of changes under proposed Section 16.09.130, Reports of Changed Conditions & Final Closure; and Addition of provisions for pools less than 20,000 gallons to discharge without a permit under proposed Section 16.09.180, Requirements for Exceptional Waste. Chapter 16.11: Stormwater Pollution Prevention (Attachment C) Business, industry, and residents help reduce pollutants entering the City’s storm drain system, creeks, and the Bay by complying with stormwater pollution prevention requirements. Chapter 16.11 codifies requirements for stormwater pollution prevention, including requirements issued by the Water Board in the 2022 Municipal Regional Stormwater National Pollutant Discharge Elimination System Permit (MRP). Proposed revisions to the existing PAMC Chapter 16.11 (Stormwater Pollution Prevention) include: Addition of existing requirements for stormwater pollution prevention that were removed from PAMC Chapter 16.09; Incorporation of requirements from the 2022 MRP issued by the San Francisco Bay Regional Water Quality Control Board and additional requirements and procedures that further support permit compliance; and Creation of related regulations for clarification of text and to codify current City implementation practices. The proposed regulatory handbook, entitled “Palo Alto Regulations for Stormwater Pollution Prevention” is available for review at the link below and will be available on the City’s website upon adoption. 4 The proposed resolution adopting the regulations is Attachment D to this report. 4 Proposed Palo Alto Regulations for Stormwater Pollution Prevention; https://www.paloalto.gov/files/assets/public/v/1/city-clerk/staff-report-links/stormwater-management- regulations-0290172.pdf Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 4  Packet Pg. 131 of 445  Significant changes from the current PAMC Chapter 16.11 include the following new requirements necessary for the City to comply with the MRP (see Attachment A for a summary of changes): Proposed Section 16.11.300, Mobile Businesses (in alignment with the MRP), clarifies that mobile businesses and those businesses and residents that contract with them are responsible for their non-stormwater discharges to City streets and the City storm drain system. Identified responsible parties may be required to cover City costs for conducting clean-ups and disposal of discharges and may be subject to citations, particularly for continued non-compliance; Proposed Section 16.11.320, Trash Load Reductions (in alignment with the MRP), requires that properties with private stormwater drainage systems connected directly to the City’s storm drain system establish controls to prevent discharges of trash. Existing business may comply by implementing trash control practices like sweeping and trash pick-up, or by installing and maintaining a trash capture device in each private inlet. Compliance will be evaluated by City inspectors; and Proposed Section 16.11.320, Trash Load Reductions (proposed by City staff to further MRP compliance regarding trash control), also requires that all development projects with private stormwater drain systems install trash capture devices during construction. This generally applies to commercial and multi-family properties with parking lots or large structures. Creation of a new PAMC Chapter (16.13) consolidating requirements for the management of FOG generated from food facilities; Incorporation of requirements from the 2022 MRP issued by the San Francisco Bay Regional Water Quality Control Board and additional requirements that further support permit compliance; and Creation of related regulations for clarification of text and to codify current City implementation practices. The proposed regulatory handbook, entitled “Palo Alto Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 5  Packet Pg. 132 of 445  Regulations for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease” is available for review at the link below and will be available on the City’s website upon adoption.5 The proposed resolution adopting the regulations is Attachment F to this report. Proposed Section 16.13.140, Requirements for Installing or Replacing Existing Grease Control Devices (GCDs), establishes requirements for the devices that remove FOG from wastewater to prevent clogged private plumbing and discharges to the sanitary sewer system. A primary update is that major food facility development projects will be required to connect all kitchen and bar fixtures to one or more GCDs (i.e., the number of GCDs will be determined by the allowed configuration of an individual food facility); Proposed Section 16.13.170, Waste Oil Storage Requirements for Food Facilities, requires secondary containment for waste oil (e.g., used fryer oil) containers stored outdoors, as waste oil is considered hazardous once it comes in contact with the environment. This proposed change would address community requests for cleaner commercial areas that reduce favorable conditions for rodents and address unsightly and odorous FOG storage and would protect sensitive creek environments from FOG- related sanitary sewer overflows. This requirement is in line with the California Fire Code and Palo Alto Municipal Code Title 17, Hazardous Materials Storage and would go into effect July 1, 2026; and The associated regulations include requirements that would apply to projects that require installing a new GCD or replacing an existing GCD. Such requirements include prohibiting sharing of new GCDs, requiring wastewater discharge through GCDs only by means of gravity, requiring two-way GCD lateral cleanouts, prohibiting materials that are susceptible to corrosion in low pH environments, and new sizing requirements for hydromechanical grease interceptors. These changes are consistent with emerging FOG management practices and are recommended based on staff experience addressing sewer backups and overflows due to GCDs that do not meet these standards. They would be implemented through local amendments to the CA Plumbing Code during the fall 2025 update of the City’s Building Regulations (Title 16). It is anticipated that they will be effective January 1, 2026. 5 Proposed Palo Alto Regulations for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease; http://paloalto.gov/files/assets/public/v/1/city-clerk/staff-report-links/fog-regulations- 0290173-corrected.pdf Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 6  Packet Pg. 133 of 445  Chapter 16.66: Hauled Liquid Waste (Attachment G) Businesses that pump out septic tanks or portable toilet waste (i.e., liquid waste) must comply with proper discharge requirements at the Regional Water Quality Control Plant. Chapter 16.66 is a new chapter for haulers of liquid waste. Proposed revisions to current hauled liquid waste requirements in the current PAMC Chapter 16.09 (Sewer Use Ordinance), include: Creation of a new PAMC Chapter (16.66) consolidating requirements related to discharge of hauled liquid waste at the Regional Water Quality Control Plant; Inclusion of existing requirements for hauled liquid waste that were removed from PAMC Chapter 16.09; Incorporation of recommendations of the United States Environmental Protection Agency’s Model Pretreatment Ordinance; and Clarification, consolidation, and reorganization of text to codify current City implementation practices and enhance use. Section 16.66.060, Hauled Liquid Waste Discharge Permit Application Procedure; Section 16.66.110, Insurance; Section 16.66.120, Hauled Liquid Waste Discharge Permit Modification; Section 16.66.130, Hauled Liquid Waste Discharge Permit Suspension or Revocation; Section 16.66.140, Hauled Liquid Waste Discharge Permit Denial, Suspension, or Revocation Hearing; Section 16.66.150, Personnel Orientation; Section 16.66.170, Charges and Fees; and Section 16.66.180, Closure of Receiving Station. FISCAL/RESOURCE IMPACT Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 7  Packet Pg. 134 of 445  Liquid Waste) are not anticipated to result in additional costs to facilities or companies governed by these ordinances. STAKEHOLDER ENGAGEMENT 6 and a total of five public meetings were held: three were held during the week of March 24, 2025 for businesses and residents, and two were held in June 2025 - one for the California Avenue Merchants Meeting and one for the Downtown/University Avenue Stakeholder Meeting. Approximately 25 stakeholders in total attended these five meetings. Staff received seven comments on proposed edits to PAMC Chapter 16.09 (Sewer Use Ordinance), all focused on clarifying text or implementation approaches. Four of those comments resulted in minor clarifying edits to the proposed ordinance. Staff received one comment on proposed edits to PAMC Chapter 16.11 (Stormwater Pollution Prevention), which requested stormwater runoff fees be made proportional to impermeable service area. This did not result in changes to the proposed ordinance, because the Palo Alto Municipal Code does not set Stormwater Management Fee charges. Staff received one comment on the proposed PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of FOG) that requested clarification on the need for the FOG program; this comment did not result 6 Retail Committee, June 18, 2025; Agenda Item #1 SR# 2505-4693 Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 8  Packet Pg. 135 of 445  in changes to the proposed ordinance. No comments were received on the proposed PAMC Chapter 16.66 (Hauled Liquid Waste). Presented all four proposed ordinance revisions to the Retail Committee meeting on August 20, 2025 and received clarifying questions on how the four ordinance revisions relate to each other and how they protect the environment. ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 9  Packet Pg. 136 of 445  Objectives: Proposed Ordinance Proposed Ordinance Section Title Section(s)Ordinance Proposed Ordinance Revision(s) 16.09.005 Purpose and Applicability 16.09.005 1.1 required to be in Minor text clarifications to better align with EPA Model Pretreatment Ordinance. 16.09.010 Abbreviations Not in existing ordinance.1.3 required to be in New section added per EPA Model Pretreatment Ordinance to aid in reading SUO. 16.09.015 Definitions 16.09.010 1.4 403.3, 403.12, & 403.8 Revised per EPA Model Pretreatment Ordinance and reformatted to make future revisions easier.Consolidated definitions that were throughout the SUO into this section. Removed definitions for average concentration, cesspool, contaminated groundwater, contaminated water, County, enforcement response plan, exceptional waste, grease, loading dock, metal fabrication facility, plant, point of discharge, root control chemicals, sanitary sewer overflow, secondary containment, seepage pit, sewage treatment plant, significant noncompliance, storm drains, unpolluted water, and wet sanding. Added definitions for Clean Water Act, composite sample, dental amalgam, dental discharger, detection limit, discharge permit, existing source, fixer solution, grab sample, industrial user, instantaneous limit, local limit, multiple-family use, POTW, reasonable control measures, and zinc-containing floor finishes.Replaced categorical discharger with categorical industrial user, definition remained the same. Replaced superintendent definition with director and redefined as City's Director of Public Works (or designee) instead of RWQCP Plant Manager (or designee). 16.09.020 Responsibility of the Director 16.09.015 1.2 required to be in Allows Director to delegate powers and duties to City employees Minor text clarifications to align with EPA Model Pretreatment Ordinance and Public Information Request Act. 16.09.030 Alternate Materials and Methods 16.09.025 Model required to be in Minor text clarifications including the switch of Chief Building Official to Director. PAMC PROPOSED CHAPTER 16.09 CHANGES - SEWER USE ORDINANCE 1) Remove hauled liquid waste requirements (16.09.070) from the City 's Sewer Use Ordinance (SUO) contained in Chapter 16.09 of the Palo Alto Municipal Code (PAMC), and house those requirements in a new Hauled Liquid Waste Ordinance contained in PAMC Chapter 16.66.2) Remove stormwater requirements (16.09.165, 16.09.170, & references throughout) from the City's SUO and house those in a revised Stormwater Ordinance contained in PAMC Chapter 16.11. 3) Remove fats, oils, and grease (FOG) requirements for food establishments (16.09.075) from the City's SUO and house those in a FOG Ordinance contained in PAMC Chapter 16.13.4) Incorporate required changes identified during the State Water Resources Control Board 2022 Audit of the City's Pretreatment Program. 5) Incorporate recommendations of the 2007 EPA Model Pretreatment Ordinance (Model Ordinance). 1 of 5 Item 8 Attachment A - Summary of Proposed Changes to all Chapters        Item 8: Staff Report Pg. 10  Packet Pg. 137 of 445  Proposed Ordinance Proposed Ordinance Section Title Section(s)Ordinance Proposed Ordinance Revision(s) 16.09.035 Limitations on Point of Discharge 16.09.030 Model required to be in Minor text clarifications including specifying exception under Exceptional Waste Discharge Permit. 16.09.040 Prohibited Discharge Standards (p), 16.09.200, & 2.1 403.5(a)-(b) & 403.12(p) Revised per EPA Model Pretreatment Ordinance ((a) and (b)(1) - (b)(8) are required by federal requirement, (b)(9) - (b)(19) are optional).Moved prohibitions of zinc-containing floor finish and fixer solutions from previous SUO Sections 16.09.200 and 16.09.215 16.09.045 16.09.130 2.2 403.8(f)(1)(ii)Revised per EPA Model Pretreatment Ordinance. Added ability to use alternative limits (i.e., combined wastestream formula) when applicable. 16.09.050 Standards for Other Wastes 16.09.060 Model required to be in Minor text clarifications. 16.09.055 Local Limits 16.09.040, 16.09.045 2.4 403.5(c)-(d) Revised per EPA Model Pretreatment Ordinance, including moving some text out of this section (e.g., dilution, pH prohibition, records of hazardous waste disposal, etc.) and into more relevant sections.No changes to the numerical limits.Removed organic solvent limit as it is covered under total toxic organics and single toxic organic limits. Consolidated limits that were throughout the SUO into this section. Clarified type of samples limits apply to.Added subset sampling for compliance with TTO limit based on pollutants reasonably expected to be present. 16.09.060 City's Right of Revision Not in existing ordinance.2.5 Not federally required to be in ordinance. New section added per EPA Model Pretreatment Ordinance. Allows City to establish more stringent requirements on a permit-by-permit basis as needed to comply with purpose of SUO. 16.09.065 Dilution 2.6 403.6(d)Revised per EPA Model Pretreatment Ordinance.Consolidated associated text out of other sections and into this one. 16.09.070 Unpolluted Water 16.09.055 2.1B(12)required to be in Moved text regarding cooling water into relevant section on cooling system requirements (Section 16.09.175) 16.09.075 Discharge Permit Required 16.09.080 4.2, 4.4, 4.6, 5.1, & 5.2 403.8(f)(1)(iii)-(iv) Revised per EPA Model Pretreatment Ordinance. Added general discharge permits as alternative to individual discharge permits when applicable.Moved text regarding changes in discharge quantity and quality to separate section on reporting those changes (Section 16.09.130).Moved text regarding decline to issue or reissue into permit application section (Section 16.09.085).Moved text for exceptional waste discharge permits into separate section (Section 16.09.180) 16.09.080 Discharge Permit Application Procedure 16.09.085 4.5, 4.7, 4.8, 5.3 403.8(f)(1)(i) Revised per EPA Model Pretreatment Ordinance.Changed required file date of application from 60 to 90 days prior to discharge to be consistent with federal regulation (40 CFR 403.12(b)).Replaced text on application approval with text on application denial.Clarified current City practices. 2 of 5 Item 8 Attachment A - Summary of Proposed Changes to all Chapters        Item 8: Staff Report Pg. 11  Packet Pg. 138 of 445  Proposed Ordinance Proposed Ordinance Section Title Section(s)Ordinance Proposed Ordinance Revision(s) 16.09.085 Discharge Permit Modification 16.09.095 5.4 403.8(f)(1)(i)Revised per EPA Model Pretreatment Ordinance.Moved revocation and suspension text to enforcement section (Section 16.09.200) 16.09.090 Inspection and Sampling 16.09.110 & 16.09.105 7.1 & 7.2 403.8(f)(1)(v), 403.12(o)(2) Revised per EPA Model Pretreatment Ordinance.Consolidated associated text out of other sections and into this one.Added provision to allow Director to seek search warrants when denied access.Added provision requiring dischargers with security personnel to make appropriate accomodations.Added provision granting Director authority to set up sampling equipment on discharger premises. 16.09.095 Self-Monitoring 16.09.120 6.4, 6.10, 6.11, & 7.1 403.8(f)(1)(iv) &403.12(g) Revised per EPA Model Pretreatment Ordinance.Added provision for monitoring facilities to be maintained.Clarified use of different types of sampling and minimum samples needed for baseline and 90-day compliance reports.Removed TOMP requirements but maintained ability to sample for subset of toxics reasonably expected to be present in discharge.No changes to pH and flow calibration frequencies. 16.09.100 Monitoring Waiver 6.4B New section added per EPA Model Pretreatment Ordinance. Allows reduced monitoring for industrial user when applicable. 16.09.105 Pretreatment Facilities 16.09.040(o)(1) & 16.09.125 3.1 Not federally required to be in ordinance. Revised per EPA Model Pretreatment Ordinance.Added provision requiring necessary pretreatment facilities be operated and maintained at industrial user's expense.Added details for common pretreatment faciliites.Added authority of Director to restrict IU flow and/or require installation of equalization equipment. Added cross-reference to new PAMC Chapter 16.13 on Fats, Oils, and Grease 16.09.110 Personnel Orientation 16.09.185 Model required to be in Minor text clarifications and moved location of section 16.09.115 Accidental Discharge Prevention 16.09.190 3.3 required to be in Minor text clarifications and moved location of sectionAdded provision allowing Director to require industrial user to develop, submit, and implement slug control plan when 16.09.120 Reporting and Certification Requirements for Industrial Users 16.09.135 4.7, 6.4, & 6.14 403.6(a)(2)(ii), & 403.12(b)-(e), (h), Added provision subjecting all industrial users to reporting and certification requirements of federal regulation (40 CFR 403.12). Simplified text by referring to federal regulation. Added provision for non-significant categorical industrial user.Added provision for electronic reporting requirements. 16.09.125 Reports from Unpermitted Users Not in existing ordinance.6.7 required to be in New section added per EPA Model Pretreatment Ordinance.Requires reports from unpermitted dischargers when deemed necessary. 16.09.130 Reports of Changed Conditions and Final Closure 16.09.125, & 6.5 403.8(f)(2)(vi) & 403.12(j) Revised per EPA Model Pretreatment Ordinance. Consolidated associated text out of other sections and into this new section.Replaced 5-day reporting requirement to 30-day advance notice of any changes that may affect wastewater. 3 of 5 Item 8 Attachment A - Summary of Proposed Changes to all Chapters        Item 8: Staff Report Pg. 12  Packet Pg. 139 of 445  Proposed Ordinance Proposed Ordinance Section Title Section(s)Ordinance Proposed Ordinance Revision(s) 16.09.135 Reports of Potential Problems and Accidental Discharges 16.09.140(c)6.6 403.12(f) & (p), 403.8(f)(2)(vi) Revised per EPA Model Pretreatment Ordinance.No change to 5-day reporting requirement. current reporting procedures. 16.09.140 Reports of Noncompliance 16.09.140 6.8 403.12(g)(2)Revised per EPA Model Pretreatment Ordinance. Consolidated associated text out of other sections and into this new section. 16.09.145 Falsification of Information 16.09.150 11.3 required to be in Minor text clarifications including addition of regulatory citations. 16.09.150 Date of Receipt of Reports 16.09.155 6.12 required to be in No significant changes. 16.09.155 Retention of Records 16.09.040(j) & 16.09.160 6.13 403.12(o)Revised per EPA Model Pretreatment Ordinance.No change to length of record retention (3 years).Added text for application of provision to electronic records. 16.09.160 Requirements for Sinks and Drains 16.09.175 & 16.09.185 Model required to be in Removed stormwater requirements.Consolidated associated text out of other sections and into this one.Expanded restriction of materials stored above sinks to apply to all chemicals, not just hazardous materials. 16.09.165 Requirements for Newly Constructed, Remodeled, Improved, or Converted Commercial and Industrial Facilities 16.09.180 Not in Model Ordinance Not federally required to be in ordinance. Removed stormwater requirements. Moved requirements for multiple-family use residential properties to new dedicated section (16.09.170).Moved fire sprinkler flush testing to exceptional waste discharge section (Section 16.09.180). 16.09.170 Constructed, Remodeled, Improved, or Converted Multiple-Family Use 16.09.180 Not in Model Ordinance Not federally required to be in ordinance. New section added to separate requirements from commercial and industrial facilities for clarity.No significant changes from current requirements. 16.09.175 Pools, Spas, Fountains, Boilers, and 16.09.205 Model required to be in Removed stormwater requirements. Consolidated associated text out of other sections and into this one.Moved text for limits to local limits section (Section 16.09.055). 16.09.180 Requirements for Exceptional Waste Model required to be in New section added for clarity.Consolidated associated text out of other sections and into this one.Added provision to discharge pools smaller than 20,000 gallons without discharge permit. 16.09.185 Root and Pest Control Chemical Use 16.09.210 Model required to be in Removed stormwater requirements.Minor text clarifications to reflect current City practices. Added provision restricting use of copper sulfate. 16.09.190 Requirements for Dental Facilities 16.09.220 Not in Model Ordinance 441 Moved definitions into definitions section (Section 16.09.015).Moved alternative copper limit to local limits section (Section 16.09.055) Changed frequency of reporting from annual to as established by the Director.Added details to reflect that waste management practices are BMPs and updated BMPs. 4 of 5 Item 8 Attachment A - Summary of Proposed Changes to all Chapters        Item 8: Staff Report Pg. 13  Packet Pg. 140 of 445  Proposed Ordinance Proposed Ordinance Section Title Section(s)Ordinance Proposed Ordinance Revision(s) 16.09.195 16.09.235 9 403.8(f)(2)(viii)Revised per EPA Model Pretreatment Ordinance.Added all regulatory text defining the different ways to be in significant noncompliance. 16.09.200 Enforcement and Penalties 16.09.095, 16.09.100, & 16.09.245-285 10.1, 10.4-10.8, & 11.1-11.4 403.8(f)(1)(iv) & (vi) Consolidated all enforcement sections.Minor text clarifications to reflect current City practices.Revised civil penalties to remove text covered by PAMC Chapters 1.08, 1.12 and 1.16.Added new subsection on injunctive relief per EPA Model Pretreatment Ordinance.Updated authorized employee positions to exercise authority under CA Penal Code section 836.5 to reflect current City 16.09.205 Permit Denial, Modification, Suspension, or Revocation Hearing 16.09.100 Model required to be in Minor text clarifications to reflect current City procedures and clarify exemptions.No change to length of notice of intent to deny, modify, suspend, or revoke permit (10 days). 16.09.210 Affirmative Defenses to Discharge Violations: Upset Not in existing ordinance.13.1 required to be in New section added per EPA Model Pretreatment Ordinance. Clarifies requirements for affirmative defenses to upsets. 16.09.215 Violations: Prohibited Discharge Not in existing ordinance.13.2 required to be in New section added per EPA Model Pretreatment Ordinance.Clarifies requirements for affirmative defenses to prohibited discharge standards. 16.09.220 Affirmative Defenses to Discharge Violations: Bypass Not in existing ordinance.13.3 required to be in New section added per EPA Model Pretreatment Ordinance.Clarified requirements for affirmative defenses to bypasses. 16.09.225 Pretreatment Charges and Fees Not in existing ordinance.15.1 required to be in New section added per EPA Model Pretreatment Ordinance.Captures current City practices for adoption of reasonable fees for reimbursement of costs. 16.09.230 Obstruction, Damage or Impairment to POTW 16.09.275 Model required to be in Minor text clarifications. 5 of 5 Item 8 Attachment A - Summary of Proposed Changes to all Chapters        Item 8: Staff Report Pg. 14  Packet Pg. 141 of 445  Objectives: Proposed Ordinance Section Proposed Ordinance Section Title Existing Code Section(s)Proposed Ordinance Revision(s)Stormwater Regulations Reference (if applicable) 16.11.010 Purpose and Intent 16.11.010 Minor changes to clarify focus of chapter requirements and provide background of regulatory requirements. Stormwater Regs Section 1: Purpose and Intent Added and deleted definitions for clarification.Stormwater Regs Section 5: Definitions and Acronyms Minor changes to ensure code consistency.Stormwater Regs Section 1: Purpose and Intent New language to establish responsibility for compliance.N/A New language to alleviate conflicts with other laws.N/A Minor changes to clarify focus of chapter requirements. Stormwater Regs Section 3: Alternate Means and Methods through Conditionally Exempt Discharges, Prohibition of 16.09.165 Expanded and revised to meet requirements of MRP and align with City practices.Exempt Discharges), and 14 (A) (Illicit Discharge Detection and Elimination and Illicit Expanded and revised to meet requirerments of MRP and align with City practices.Stormwater Regs Section 6: Inspection Authority and Types of Required Inspections 16.11.120 Enforcement and Penalties 16.09.240, 16.09.245, 16.09.250, 16.09.255, 16.09.260, 16.09.265, 16.09.270, and 16.11.060 Revised to be consistent requirements of the MRP and City's Enforcement Response Plan and to align with City practices.Stormwater Regs Section 7: Required Corrective Actions Minor changes to clarify focus of chapter requirements. Stormwater Regs Section 4: Fees and Charges 16.11.140 16.09.005 Clarifies responsibilities of dischargers in the case of obstruction, damage, or impairment.􀆟􀆟on, Damage or Impairment to City Storm Drain System and Right-of-Way 16.11.150 Regulated Projects 16.11.030 (a) Clarifies and expands requirements to align with requirements of the MRP for regulated projects, including new development, redevelopment, new or widening road projects, road reconstruction, Stormwater Regs Section 12 (A): Development Project Requirements (Regulated Projects) 16.11.160 Source Control Measures for Regulated Projects 16.11.030 (c)Aligned with requirements of the MRP. 16.11.170 Site Design Measures for Regulated Projects 16.11.030 (c)Aligned with requirements of the MRP. 16.11.180 Stormwater Treatment Measures for Regulated 16.11.030 (c) and (d) and Expanded and revised to meet requirements of MRP and align with City practices.Stormwater Regs Section 12 (D): Development Project Requirements (LID Stormwater 16.11.190 Certification of Compliance for Regulated Projects 16.11.030 (f)Expanded and revised to meet requirements of MRP and align with City practices.Stormwater Regs Section 12 (H): Development Project Requirements (Certification of Compliance for Regulated Projects) 16.11.200 Green Infrastructure Design and Construction Requirements Not in current code.Addition to align with City practices.Stormwater Regs Section 12(I): Development Project Requirements (Green Infrastructure Design and Construc􀆟􀆟on Requirements) 16.11.210 Measures for Regulated Projects 16.11.031 Aligned with requirements of the MRP. Hydromodifica􀆟􀆟on Management Measures for Regulated Projects) 16.11.220 Treatment Measures and Hydromodification 16.11.040 Expanded and revised to meet requirements of MRP and align with City practices.Maintenance of Stormwater Treatment Measures and Hydromodification Management 2) Moved and revised Construction Requirements from 16.09.170 to new section 16.11.280.3) Incorporate required changes required by the California Regional Water Quality Control Board San Francisco Bay Region, Municipal Regional Stormwater (MRP) NPDES Permit Order No. R2-2022-0018, NPDES Permit No. CAS612008 (May 11, 2022). PROPOSED PAMC UPDATED CHAPTER 16.11 - Stormwater Pollution Prevention 1 of 2 Item 8 Attachment A - Summary of Proposed Changes to all Chapters        Item 8: Staff Report Pg. 15  Packet Pg. 142 of 445  Proposed Ordinance Section Proposed Ordinance Section Title Existing Code Section(s)Proposed Ordinance Revision(s)Stormwater Regulations Reference (if applicable) 16.11.230 Low Impact Development Source Control and Site Design Measures for Projects Other Than “Regulated Projects” 16.11.036 Expanded and revised to meet requirements of MRP and increase use of these meaures at Non- Regulated projects. Stormwater Regs Section 12 (L): Development Project Requirements (Low Impact Development Source Control and Site Design Measures for Projects Other Than “Regulated Projects” Under Section 16.11.160) 16.11.240 Requirements for All Development Projects 16.09.165 (f), 16.09.180 Revised and expanded to meet requirements of MRP and align with City practices. 16.11.250 Requirements for Loading Docks 16.09.165 (e), 16.09.175 (k), and Expanded and revised to meet requirements of MRP and align with City practices.Stormwater Regs Section 12 (O): Development Project Requirements (Requirements for 16.11.260 Drainage Design Standards for Development Projects Not in current code.Addition to align with City practices.Stormwater Regs Section 12 (P): Development Project Requirements (Drainage Design Standards for Development Projects) 16.11.270 Requirements for Construction Sites and Activities 16.09.170 Expanded and revised to meet requirements of MRP.Stormwater Regs Section 12 (Q): Development Project Requirements (Requirements for Construction Sites and Activities) 16.11.280 16.09.065 Expanded and revised to meet requirements of MRP and align with City practices.Stormwater Regs Section 13: Required Best Management Practices for All Dischargers 16.11.290 Spill Containment and Notification of Non-Stormwater Discharges 16.09.175 (spill containment) Notification for non-Stormwater discharge not included in previous code section for stormwater. Spill Containment: Expanded and revised to meet requirerments of MRP.Notification: Addition to meet requirements of MRP.Stormwater Regs Section 14 (B): Illicit Discharge Detection and Elimination and Illicit Connections Addition to meet requirements of MRP and align with City practices.Stormwater Regs Section 14 (C) Addition to meet requirements of MRP and align with City practices.Stormwater Regs Section 15: Pesticides Toxicity Control 16.11.320 Trash Load Reductions Not in current code.Addition to meet requirements of MRP and align with City practices. New requirement for Stormwater Regs Section 16: Trash Load Reduction Addition to meet requirements of MRP.Stormwater Regs Section 17: Mercury Controls 16.11.340 and 16.11.350 Management of PCBs During Building Demolition 16.11.080 Minor changes to align with the MRP.Stormwater Regs Section 18: Polychlorinated Biphenyls (PCBs) Controls 2 of 2 Item 8 Attachment A - Summary of Proposed Changes to all Chapters        Item 8: Staff Report Pg. 16  Packet Pg. 143 of 445  Objectives: Proposed Ordinance Proposed Ordinance Section Title Existing Code Section(s)Proposed Ordinance Revision(s)FOG Regulations Reference (if applicable) 16.13.010 Purpose and Intent 16.09.005 Minor changes to clarify focus of chapter requirements. FOG Regulations Part 1: Purpose, Applicability, and Definitions 16.13.020 Definitions 16.09.010 and 16.09.075 (a)Added, edited and deleted definitions for clarification including new definition of Food Facility to replace prior term of Food Service Establishment, to parallel the changes in the California Health and Safety Code, FOG Regulations Part 1: Purpose, Applicability, and Definitions Minor changes to ensure code consistency.FOG Regulations Part 1: Purpose, Applicability, and Definitions Minor changes to clarify focus of chapter requirements. FOG Regulations Part 1: Purpose, Applicability, and Definitions New language to alleviate conflicts with other laws.N/A Minor changes to clarify focus of chapter requirements. FOG Regulations Part 1: Purpose, Applicability, and Definitions Minor changes for clarification, align with City practices, and ensure Code consistency.FOG Regulations Part 11: Retention of Records 16.13.080 Drain and Sanitary Sewer Treatment Systems and Rights-of-way 16.09.275 Updated language to clarify legal authority of City to assess charges for damage to its infrastructure related to this chapter.N/A 16.13.090 Authority to Inspect 16.09.015 and 16.09.110 Updated language to clarify legal authority of the City to inspect and to enforce the Municipal Regional Stormwater Permit (MRP).FOG Regulations Part 2: Inspections and Corrective Actions Updated language clarifies legal authority of the City to require corrective action.FOG Regulations Part 2: Inspections and Corrective Actions 16.13.110 Fees and Charges New language to clarify that City may adopt reasonable fees and charges for reimbursement.N/A 16.13.120 Prohibited Discharges Updated language for clarification and to better align with City practices.FOG Regulations Part 3: Discharges, Devices, and Connections 16.13.130 Prohibited Devices, Equipment, and Connections 16.09.075 (b) and (e) Updated language for clarification and to better align with City practices.FOG Regulations Part 3: Discharges, Devices, and Connections 16.13.140 16.09.075 (m)Major changes, references the City's Regulation for Food Facilities, where Grease Control Device requirements are specified. FOG Regulations Part 4: Installation and Replacement of Grease Control Devices 16.13.150 Grease Control Device Maintenance Requirements 16.09.075 (f), (g), and (n)Updated language, references the City's Regulation for Food Facilities, where Grease Control Device FOG Regulations Part 5: Maintenance of Grease Control Devices 16.13.160 Not in current code.New language, references the City's Regulation for Food Facilities, where Rooftop Grease Containment system requirements are specified. 16.13.170 Waste Oil Storage and Management Requirements for Food Facility Development Projects 16.09.075 (o) and (q)Updated language referencing the City's Regulation for Food Facilities, where Waste Oil Storage and Management requirements are specified.FOG Regulations Part 8: Waste Oil Storage and Management Requirements for Food Facilities 16.13.180 16.09.075 (o) Updated language referencing the City's Regulation for Food Facilities, where Waste Oil Storage and Management requirements are specified. 16.13.190 Response Activities Conducted at and Associated 16.09.075 (k), (o), and (p)Updated language referencing the City's Regulation for Food Facilities, whereRequirements for Fats, Oils, and Grease Spill Response Activities Conducted at and Associated with Food Facilities requirements are FOG Regulations Part 9: Requirements for Spill Response Activities Conducted at and Associated with Food Facilities. 16.13.200 Best Management Practices for Existing Facilities 16.09.075 (k) and (l)Updated language referencing the City's Regulation for Food Facilities, where Food Facility Best Management Practices are specified.FOG Regulations Part 10: Best Management Practices (BMPs) for Existing Food Facilities 2) Incorporated changes required by the California Regional Water Quality Control Board San Francisco Bay Region, Municipal Regional Stormwater (MRP) NPDES Permit Order No. R2-2022-0018, NPDES Permit No. CAS612008 (May 11, 2022). 3) Developed regulations to serve as a reference document to clarify ordinance requirements. 4) Align FOG requirements with City practices. PROPOSED PAMC NEW CHAPTER 16.13 - Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease (FOG) 1 of 2 Item 8 Attachment A - Summary of Proposed Changes to all Chapters        Item 8: Staff Report Pg. 17  Packet Pg. 144 of 445  Proposed Ordinance Proposed Ordinance Section Title Existing Code Section(s)Proposed Ordinance Revision(s)FOG Regulations Reference (if applicable) 16.13.210 Mobile Food Facilities Not in current code.New language referencing the City's Regulation for Food Facilities, where Food Facility Best Management Practices are specified.FOG Regulations Part 12: Mobile Food Facilities 16.14.220 Food Facility Closure or Change of Ownership 16.09.075 (n)(1)(H)Updated language that details requirements for cleaning and/or abandoning Grease Control Device. Also references further discussion in the City's Regulation for Food Facilities.FOG Regulations Part 13: Food Facility Closure or Change of Ownership 2 of 2 Item 8 Attachment A - Summary of Proposed Changes to all Chapters        Item 8: Staff Report Pg. 18  Packet Pg. 145 of 445  Objectives: Proposed Ordinance Proposed Ordinance Section Title(s)Existing Ordinance Section(s)Proposed Ordinance Revision(s) 16.66.010 Purpose 16.09.005 Updated language to describe purpose of this new Chapter. 16.66.020 Definitions 16.09.010 Added new definitions for clarification. 16.66.030 Responsibility of the Director 16.09.015 Updated language to be consistent with proposed SUO. Replaced superintendent with director. Replaced designee of RWQCP manager with designee of director of public works. 16.66.040 Discharge of Hauled Liquid Waste 16.09.070(a) Expanded language clarifies the waste types allowed for discharge at the RWQCP receiving station. Removes prohibition on combining loads of different waste types, which was previously codified at 16.09.070(d). Meets suggested requirements from 16.66.050 Hauled Liquid Waste Discharge Permit Required 16.09.070(a) Expanded language pertaining to the director’s authority to decline to issue/reissue a hauled liquid waste discharge permit; conditions of permit transferability; and conditional privilege established by issuance of a hauled liquid waste discharge 16.66.060 Not in existing ordinance New language to better align with current City practices and SUO. 16.66.070 Approved Vehicles 16.09.070(a)New language clarifying that entry shall be granted only to vehicles possessing a valid permit issued by the Santa Clara County Department of Environmental Health in addition to valid hauled liquid waste discharge permit. 16.66.080 Waste Monitoring 16.09.070(d) Expanded language consistent with proposed SUO. Grants City the authority to inspect, surveil, and sample loads from waste haulers to verify compliance. Grants the director authority to require a waste analysis for any load prior to discharge. Meets 16.66.090 Reporting Requirements for Waste Haulers 16.09.070(d) Expanded language establishes the director’s authority to require waste haulers to submit reports and other information to document compliance with the provisions of this Chapter. Establishes director’s authority to establish and require use of an electronic document submittal program consistent with proposed SUO. Meets suggested requirements from 2007 EPA Updated language to be consistent with proposed SUO and federal pretreatment recordkeeping requirements. New language to be consistent with current City practices. 16.66.120 Hauled Liquid Waste Discharge Permit Modification Not in existing ordinance New language to be consistent with current City practices and proposed SUO. Specifies conditions under which director may modify a permit, including but not limited to, new regulatory requirements; changes at the POTW; violations; and information indicating the permitted discharge poses a threat to POTW, City personnel, or receiving water. 16.66.130 Hauled Liquid Waste Discharge Permit Suspension or Revocation Not in existing ordinance New language to be consistent with current City practices and SUO. Specifies conditions under which director may suspend a permit, including but not limited to, failure to complete an application, misrepresentation or failure to fully disclose relevant facts, falsifying reports, tampering of monitoring equipment, and disposal of waste originating outside of RWQCP service area. PAMC PROPOSED NEW CHAPTER 16.66 - HAULED LIQUID WASTE ORDINANCE 1 of 2 Item 8 Attachment A - Summary of Proposed Changes to all Chapters        Item 8: Staff Report Pg. 19  Packet Pg. 146 of 445  Proposed Ordinance Proposed Ordinance Section Title(s)Existing Ordinance Section(s)Proposed Ordinance Revision(s) 16.66.140 Suspension, or Revocation Hearing Not in existing ordinance New language to be consistent with proposed SUO. Specifies conditions under which an applicant or permit holder may request a hearing before the city manager or their designee. New language to be consistent with current City practices and proposed SUO.Updated language that is consistent with proposed SUO. 16.66.170 Charges and Fees Not in existing ordinance Updated language that is consistent with current City practices and conditions for City to seek reimbursement to cover program costs. 16.66.180 Closure of Receiving Station Not in existing ordinance New section that establishes director’s authority to halt discharge of hauled liquid waste at the receiving station as deemed necessary for good cause. 2 of 2 Item 8 Attachment A - Summary of Proposed Changes to all Chapters        Item 8: Staff Report Pg. 20  Packet Pg. 147 of 445  *NOT YET APPROVED* 1 0290170_20250418_ms29 Ordinance No. Ordinance of the Council of the City of Palo Alto Amending Chapter 16.09 (Sewer Use Ordinance) of Title 16 of the Palo Alto Municipal Code to Update the Regulations Related to Use of the Sanitary Sewer System The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A. In order to protect the public health and environment, including the City’s sanitary sewer system, the Palo Alto Regional Water Quality Control Plant, and San Francisco Bay, the City has developed and implements a water quality control program; B. Protection of the City’s sanitary sewer system, the Palo Alto Regional Water Quality Control Plant, and San Francisco Bay requires strict control of industrial wastewater discharges; C. The adoption of this Sewer Use Ordinance is a component of the City’s water quality control program and establishes the City’s authority to implement state and federally required industrial wastewater pretreatment programs and standards to control industrial pollutants that may pass through or interfere with publicly owned treatment works or contaminate sewage sludge. SECTION 2. Chapter 16.09 (Sewer Use Ordinance) of Title 16 (Building Regulations) is hereby repealed and replaced in its entirety to read as follows: Chapter 16.09 SEWER USE ORDINANCE Sections: 16.09.005 Purpose and Applicability. 16.09.010 Abbreviations. 16.09.015 Definitions. 16.09.020 Responsibility of the Director. 16.09.025 Confidentiality. 16.09.030 Alternate Materials and Methods. 16.09.035 Limitations on Point of Discharge. 16.09.040 Prohibited Discharge Standards. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 21  Packet Pg. 148 of 445  *NOT YET APPROVED* 2 0290170_20250418_ms29 16.09.045 National Categorical Pretreatment Standards. 16.09.050 Standards for Other Wastes. 16.09.055 Local Limits. 16.09.060 City’s Right of Revision. 16.09.065 Dilution. 16.09.070 Unpolluted Water. 16.09.075 Discharge Permit Required. 16.09.080 Discharge Permit Application Procedure. 16.09.085 Discharge Permit Modification. 16.09.090 Inspection and Sampling. 16.09.095 Self-Monitoring. 16.09.100 Monitoring Waiver. 16.09.105 Pretreatment Facilities. 16.09.110 Personnel Orientation. 16.09.115 Accidental Discharge Prevention. 16.09.120 Reporting and Certification Requirements for Industrial Users. 16.09.125 Reports from Unpermitted Users. 16.09.130 Reports of Changed Conditions and Final Closure. 16.09.135 Reports of Potential Problems and Accidental Discharges. 16.09.140 Reports of Noncompliance 16.09.145 Falsification of Information. 16.09.150 Date of Receipt of Reports. 16.09.155 Retention of Records. 16.09.160 Requirements for Sinks and Drains. 16.09.165 Requirements for Newly Constructed, Remodeled, Improved, or Converted Commercial and Industrial Facilities. 16.09.170 Requirements for Newly Constructed, Remodeled, Improved, or Converted Multiple-Family Use Residential Properties. 16.09.175 Requirements for Cooling Systems, Pools, Spas, Fountains, Boilers, and Heat Exchangers. 16.09.180 Requirements for Exceptional Waste. 16.09.185 Root and Pest Control Chemical Use. 16.09.190 Requirements for Dental Facilities. 16.09.195 Publication of Users in Significant Noncompliance. 16.09.200 Enforcement and Penalties. 16.09.205 Permit Denial, Modification, Suspension, or Revocation Hearing 16.09.210 Affirmative Defenses to Discharge Violations: Upset. 16.09.215 Affirmative Defenses to Discharge Violations: Prohibited Discharge Standards. 16.09.220 Affirmative Defenses to Discharge Violations: Bypass. 16.09.225 Pretreatment Charges and Fees. 16.09.230 Obstruction, Damage or Impairment to POTW. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 22  Packet Pg. 149 of 445  *NOT YET APPROVED* 3 0290170_20250418_ms29 16.09.005 Purpose and Applicability. This Chapter sets forth uniform requirements for users of the Palo Alto Regional Water Quality Control Plant, a Publicly Owned Treatment Works (POTW), and enables the City and the POTW to comply with all applicable State and Federal laws, including the Clean Water Act (33 United States Code [U.S.C.] Section 1251 et seq.) and the General Pretreatment Regulations (Title 40 of the Code of Federal Regulations [CFR] Part 403), and the water quality requirements set by the San Francisco Bay Regional Water Quality Control Board and/or the California State Water Resources Control Board. The objectives of this Chapter are: (a) To prevent the introduction of pollutants into the POTW that will interfere with its operation; (b) To prevent the introduction of pollutants into the POTW that will pass through the POTW, inadequately treated, into receiving waters, or otherwise be incompatible with the POTW; (c) To protect both POTW personnel who may be affected by wastewater and sludge in the course of their employment and the general public; (d) To promote reuse and recycling of wastewater and sludge from the POTW; and (e) To enable the POTW to comply with its National Pollutant Discharge Elimination System (NPDES) permit conditions, sludge use and disposal requirements, and any other Federal or State laws to which the POTW is subject. It is the intent of the City to update and modify this Chapter as needed to continue to provide a program for protection of the POTW which is approved by Federal and State regulatory agencies. Therefore, this Chapter is designed to be no less stringent than the Clean Water Act and the Effluent Guidelines and Standards published at Title 40 CFR Chapter I, Subchapter N as applicable, and as such regulations may be amended from time to time. If any provision of this Chapter conflicts with applicable Federal or State requirements, as amended or updated, the more stringent and environmentally protective provision shall apply. This Chapter shall apply to all users of the POTW, including but not limited to, persons within the City of Palo Alto and persons outside the City who are, by contract with the City, users of the POTW. This Chapter authorizes the issuance of individual wastewater discharge permits and general discharge permits; provides for monitoring, compliance and enforcement activities; establishes administrative review procedures; and requires industrial user reporting. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 23  Packet Pg. 150 of 445  *NOT YET APPROVED* 4 0290170_20250418_ms29 16.09.010 Abbreviations. The following abbreviations, when used in this Chapter, shall have the designated meanings: BOD – Biochemical Oxygen Demand BMP – Best Management Practice BMR – Baseline Monitoring Report CFR – Code of Federal Regulations CIU – Categorical Industrial User COD – Chemical Oxygen Demand EPA – United States Environmental Protection Agency gpd – gallons per day gpm – gallons per minute IU – Industrial User mg/L – milligrams per liter NPDES – National Pollutant Discharge Elimination System NSCIU – Non-Significant Categorical Industrial User PAMC – Palo Alto Municipal Code POTW – Publicly Owned Treatment Works PRCC – Periodic Report of Continued Compliance RCRA – Resource Conservation and Recovery Act RWQCP – Palo Alto Regional Water Quality Control Plant SIU – Significant Industrial User SNC – Significant Noncompliance STO – Single Toxic Organic TDS – Total Dissolved Solids TSS – Total Suspended Solids TTO – Total Toxic Organics U.S.C. – United States Code 16.09.015 Definitions. The following terms and phrases, whenever used in this Chapter, shall be as defined herein. Terms and phrases used in this Chapter not otherwise defined shall be as defined or interpreted or used in Title 40 of the CFR. (a) “A” definitions: (1) “Amalgam process wastewater” means any wastewater generated and discharged by a dental discharger through the practice of dentistry that may contain dental amalgam. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 24  Packet Pg. 151 of 445  *NOT YET APPROVED* 5 0290170_20250418_ms29 (2) “Amalgam separator” is a device that employs filtration, settlement, centrifugation, or ion exchange to remove amalgam and its metal constituents from a dental office vacuum system before it discharges to the sanitary sewer system; has been certified under the International Organization for Standardization’s standard for amalgam separators as capable of removing a minimum of ninety-five percent of dental amalgam at flow rates comparable to the flow rate of the actual vacuum suction system in operation; and does not have any automatic flow bypass. (3) “Amalgam waste” means and includes non-contact amalgam (amalgam scrap that has not been in contact with the patient); contact amalgam (including, but not limited to, extracted teeth containing amalgam); amalgam sludge captured by chair-side traps, vacuum pump filters, screens, and other amalgam trapping devices; used amalgam capsules; and leaking or unusable amalgam capsules. (4) “Annual average concentration” means the average concentration of a substance measured over any twelve- (12-) month period of time. (5) “Authorized representative” means an authorized or duly authorized representative of the industrial user as defined below: (A) If the user is a corporation: (i) The president, secretary, treasurer, or a vice-president of the corporation in charge of a principal business function, or any other person who performs similar policy or decision-making functions for the corporation; or (ii) The manager of one or more manufacturing, production, or operating facilities, provided the manager is authorized to make management decisions that govern the operation of the regulated facility including having the explicit or implicit duty of making major capital investment recommendations, and initiate and direct other comprehensive measures to assure long-term environmental compliance with environmental laws and regulations; can ensure that the necessary systems are established or actions taken to gather complete and accurate information for discharge permit requirements; and where authority to sign documents has been assigned or delegated to the manager in accordance with corporate procedures. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 25  Packet Pg. 152 of 445  *NOT YET APPROVED* 6 0290170_20250418_ms29 (B) If the user is a partnership or sole proprietorship: a general partner or proprietor, respectively. (C) If the user is a Federal, State, or local governmental facility: a director or highest official appointed or designated to oversee the operation and performance of the activities of the government facility, or their designee. (D) The individuals described in subsections (A) through (C), above, may designate a Duly Authorized Representative if the authorization is in writing, the authorization specifies the individual or position responsible for the overall operation of the facility from which the discharge originates or having overall responsibility for environmental matters for the organization, and the written authorization is submitted to the Director. (6) “Average Daily Blowdown” means the result of dividing the total cooling system blowdown volume from May 1 through September 30 by the number of days of operation for the same period. (b) “B” definitions: (1) “Berm” means a ridge, lip, or other raised barrier to the flow of liquid which is not rendered ineffective by the liquid and is sufficiently high to contain anticipated fluid amounts, or which causes sufficient grade to prevent migration of anticipated fluid amounts. (2) “Sewer Best Management Practices” or “BMPs” means schedules of activities, prohibitions of practices, maintenance procedures, and other management practices to implement the prohibitions in this Chapter. BMPs include treatment requirements, operating procedures, and practices to control plant site runoff, spillage or leaks, sludge or waste disposal, or drainage from materials storage. (3) “Biochemical oxygen demand” or “BOD” means the quantity of oxygen utilized in the biochemical oxidation of organic matter under standard laboratory procedures for five (5) days at 20 degrees centigrade, usually expressed as a concentration (e.g., mg/L). (c) “C” definitions: (1) “Categorical industrial user” means an industrial user subject to a categorical pretreatment standard. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 26  Packet Pg. 153 of 445  *NOT YET APPROVED* 7 0290170_20250418_ms29 (2) “Categorical pretreatment standard” means any regulation containing pollutant discharge limits promulgated by EPA that apply to a specific category of industrial users and that appear in 40 CFR Chapter I, Subchapter N, Parts 405-471. (3) “City” means the City of Palo Alto located in the State of California. (4) “Clean Water Act” means the Federal Water Pollution Control Act, also known as the Clean Water Act, as amended, 33 U.S.C. Section 1251 et seq. (5) “Collection system” means the pipelines, pump stations, junction boxes, channels, and other conveyance apparatus used to move wastewater. (6) “Composite sample” means a series of samples taken over a given period of time that accurately represents the average pollutant concentration during said period of time. (7) “Cooling system blowdown” means water routinely discharged from a cooling water system to maintain efficient operation of the system. (8) “Cooling water” means water which is used to cool fluids or equipment in commercial or industrial processes or air conditioning systems. (9) “Cooling water system” means the pipes, heat exchangers, and other appurtenances used to convey cooling water in cooling towers, direct contact cooling systems, and similar fixed cooling systems. Multiple units of a cooling water system serving a building or piece of equipment are considered as one system if the cooling water distribution system units are physically connected. (10) “Cycles of concentration” means the flow rate of water added to a cooling tower water system divided by the flow rate of water discharged from the cooling tower water system. (d) “D” definitions: (1) “Dental amalgam” means an alloy of elemental mercury and other metal(s) that is used in the practice of dentistry. (2) “Dental discharger” means a facility where the practice of dentistry is performed, including, but not limited to, institutions, permanent or temporary offices, clinics, home offices, and facilities owned and operated by Federal, State or local governments, that discharges wastewater to the sanitary sewer system. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 27  Packet Pg. 154 of 445  *NOT YET APPROVED* 8 0290170_20250418_ms29 (3) “Detection limit” means the minimum concentration of an analyte (substance) that can be measured and reported with ninety-nine percent (99%) confidence that the analyte concentration is greater than zero as determined by the procedures set forth in 40 CFR Part 136, Appendix B. (4) “Director” means the City’s director of public works, his or her designee or such other person as may be designated by the city manager. (5) “Discharge” means the introduction of pollutants into the POTW from any nondomestic source. (6) “Discharge permit” or “wastewater discharge permit” means a legal document, used as a control mechanism, which grants revocable permission and authorization to discharge wastewater into the sanitary sewer system. Discharge permits can be issued either to an individual industrial user or applied broadly to a set of industrial users as a general discharge permit. (7) "Discharger" means any person or entity who has the potential to or who discharges, causes, or permits the discharge of any pollutant or of any industrial or commercial process flows into the sanitary sewer system. Discharger is inclusive of industrial user. (e) “E” definitions: (1) “Environmental Protection Agency” or “EPA” means the United States Environmental Protection Agency, or where appropriate, the Regional Water Management Division Director, the Regional Administrator, or other duly authorized official of said agency. (2) “Existing source” means any source of discharge that is not a new source. (f) “F” definitions: (1) “Fail-safe valve” means a gravity, spring loaded or electrically driven valve that is normally closed. The valve can be opened by continuously applying pressure or depressing a switch mechanism that automatically closes the valve when not in use or depressed. (2) “Fixer solution” means a solution containing silver used in the photographic processing of dental x-rays, x-rays, and photographs. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 28  Packet Pg. 155 of 445  *NOT YET APPROVED* 9 0290170_20250418_ms29 (g) “G” definitions: (1) “Grab sample” means a sample that is taken from a wastestream on a one- time basis with no regard to the flow of the wastestream, taken over a period not to exceed fifteen (15) minutes. (h) “H” definitions: (1) “Hazardous material” means any material so designated by Title 17 of this code. (2) “Hazardous waste” means a material designated as a hazardous waste by Federal, State, or local regulations. (i) “I” definitions: (1) “Industrial user” means a discharger of industrial waste to the POTW. (2) “Industrial waste,” “process wastewater”, or “process waste stream” means the waste or wastewater from any production, manufacturing, research/development, groundwater remediation, or processing operation of any nature including institutional and commercial. Industrial waste shall not include sewage. (3) “Instantaneous limit” means the maximum concentration of a pollutant allowed to be discharged at any time, determined from the analysis of any discrete or composited sample collected, independent of the industrial flow rate and the duration of the sampling event. (4) “Interference” means a discharge that, alone or in conjunction with a discharge or discharges from other sources, inhibits or disrupts the POTW, its treatment processes or operations or its sludge processes, use or disposal; and therefore, is a cause of a violation of the City’s NPDES permit (including an increase in the magnitude or duration of a violation) or of the prevention of sewage sludge use or disposal in compliance with any of the following statutory/regulatory provisions or permits issued thereunder, or any more stringent State or local regulations: Section 405 of the Clean Water Act; the Solid Waste Disposal Act, including Title II commonly referred to as the Resource Conservation and Recovery Act (RCRA); any State regulations contained in any State sludge management plan prepared Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 29  Packet Pg. 156 of 445  *NOT YET APPROVED* 10 0290170_20250418_ms29 pursuant to Subtitle D of the Solid Waste Disposal Act; the Clean Air Act; the Toxic Substances Control Act; and the Marine Protection, Research, and Sanctuaries Act. (j) “J” definitions: Reserved (k) “K” definitions: Reserved (l) “L” definitions: (1) “Local limit” means specific discharge limits developed and enforced by the City upon industrial or commercial facilities to implement the general and specific discharge prohibitions listed in 40 CFR 403.5(a)(1) and (b). (m) “M” definitions: (1) “Machine shop” means a fixed facility which cuts, grinds, polishes, deburrs, or machines metal parts but does not conduct metal finishing as that term is defined by the EPA in 40 CFR Part 433. (2) “Multiple-family use” shall be as defined in Title 18 of this code. (n) “N” definitions: (1) “New source” means any building, structure, facility, or installation from which there is (or may be) a discharge of pollutants, the construction of which commenced after the publication of proposed Pretreatment Standards under section 307(c) of the Clean Water Act that will be applicable to such source if such pretreatment standards are thereafter promulgated in accordance with that section, provided that: (A) The building, structure, facility, or installation is constructed at a site at which no other source is located; or (B) The building, structure, facility, or installation totally replaces the process or production equipment that causes the discharge of pollutants at an existing source; or (C) The production or wastewater generating processes of the building, structure, facility, or installation are substantially independent of an existing source at the same site. In determining whether these are substantially independent, factors such as the extent to which the new facility is integrated with the existing building, structure, facility, or Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 30  Packet Pg. 157 of 445  *NOT YET APPROVED* 11 0290170_20250418_ms29 installation, and the extent to which the new facility is engaged in the same general type of activity as the existing source, should be considered. (2) “Noncontact cooling water” means water used for cooling that does not come into direct contact with any raw material, intermediate product, waste product, or finished product. (o) ”O” definitions: (1) “Oil-water separator” means a receptacle designed and constructed to intercept, separate, and prevent the passage of oils and sediments into the sanitary sewer system. (2) “Once-through cooling system” means a cooling system through which water passes only once before discharge to the sanitary sewer system, including laboratory bench top cooling systems. (3) “Organic solvent” means any solvent which contains carbon in its molecular structure. (p) ”P” definitions: (1) “Pass through” means a discharge which exits the POTW into waters of the United States in quantities or concentrations which, alone or in conjunction with a discharge or discharges from other sources, is a cause of a violation of any requirement or provision of the City's NPDES permit, including an increase in the magnitude or duration of a violation. (2) “Person” means any individual, partnership, co-partnership, firm, company, corporation, association, joint stock company, trust, estate, governmental entity, or any other legal entity; or their legal representatives, agents, or assigns. This definition includes all Federal, State, and local government entities. (3) “Pretreatment” means the reduction of the amount of pollutants, the elimination of pollutants, or the alteration of the nature of pollutant properties in wastewater prior to, or in lieu of, introducing such pollutants into the POTW. This reduction or alteration can be obtained by physical, chemical, or biological processes; by process changes; or by other means, except by diluting the concentration of the pollutants unless allowed by an applicable pretreatment standard. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 31  Packet Pg. 158 of 445  *NOT YET APPROVED* 12 0290170_20250418_ms29 (4) “Pretreatment requirement” means any substantive or procedural requirement related to pretreatment imposed on an industrial user other than a pretreatment standard. (5) “Pretreatment standards” means prohibited discharge standards, categorical pretreatment standards, and local limits. (6) “Pretreatment system” means a treatment system at an industrial or commercial facility that is designed to reduce the amount of pollutants, eliminate pollutants, or alter the nature of the pollutant properties in the wastewater prior to discharge to the sanitary sewer system (7) “Publicly Owned Treatment Works” or “POTW” means a treatment works, as defined by section 212 of the Clean Water Act (33 U.S.C. Section 1292), which is owned by the City. This definition includes any devices or systems used in the collection, storage, treatment, recycling, and reclamation of sewage or industrial wastes of a liquid nature and any conveyances, which convey wastewater to a treatment plant. (q) “Q” definitions: Reserved (r) “R” definitions: (1) “Reasonable Control Measures” or “RCMs” means control technologies, BMPs, source control practices, and waste minimization procedures which prevent or reduce the introduction of pollutants to the sanitary sewer system, and are determined by the Director to be cost effective for particular industry groups, business types, or specific industrial and commercial processes. (s) “S” definitions: (1) “Sampling location” means an access box, valve, spigot, or similar structure from which samples representative of an industrial or commercial wastewater discharge from a particular process or processes, piece of equipment, activity, building, or facility may be collected. (2) “Sanitary sewer system” means the collection system, all sewers, treatment plants and other facilities owned or operated by the city for carrying, collecting, storing, treating, reclaiming and disposing of sanitary sewage and industrial wastes. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 32  Packet Pg. 159 of 445  *NOT YET APPROVED* 13 0290170_20250418_ms29 (3) “Sewage” means human excrement and gray water (household showers, dishwashing operations, etc.). (4) “Sewer” means a pipe or conduit for carrying wastewater. (5) “Significant industrial user” means, except as provided in (C) and (D): (A) An industrial user subject to categorical pretreatment standards; or (B) An industrial user that: (i) Discharges an average of twenty-five thousand (25,000) gpd or more of process wastewater to the POTW (excluding sanitary, noncontact cooling, and boiler blowdown wastewater); (ii) Contributes a process wastestream which makes up five (5) percent or more of the average dry weather hydraulic or organic capacity of the POTW treatment plant; or (iii) Is designated as such by the Director on the basis that it has a reasonable potential for adversely affecting the POTW’s operation or for violating any pretreatment standard or requirement. (C) The Director may determine that an industrial user subject to categorical pretreatment standards is a non-significant categorical industrial user rather than a significant industrial user on a finding that the industrial user never discharges more than 100 gpd of total categorical wastewater (excluding sanitary, non-contact cooling, and boiler blowdown wastewater, unless specifically included in the pretreatment standard) and the following conditions are met: (i) The industrial user, prior to the Director’s finding, has consistently complied with all applicable categorical pretreatment standards and requirements; (ii) The industrial user annually submits the certification statement required in 40 CFR 403.12(q) together with any additional information necessary to support the certification statement; and Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 33  Packet Pg. 160 of 445  *NOT YET APPROVED* 14 0290170_20250418_ms29 (iii) The industrial user never discharges any untreated concentrated wastewater. (D) Upon a finding that an industrial user meeting the criteria in subsection (B) of this part has no reasonable potential for adversely affecting the POTW’s operation or for violating any pretreatment standard or requirement, the Director may at any time, on his or her own initiative or in response to a petition received from an industrial user, determine that such industrial user should not be considered a significant industrial user. (6) “Simple payback period” means the number of years required to recover the cost of an investment in water pollution control. (7) “Single toxic organic” or “STO” shall mean the highest quantifiable value for any individual toxic organic compound. (8) “Slug discharge” means any discharge of a non-routine, episodic nature, including but not limited to an accidental spill or a non-customary batch discharge which has a reasonable potential to cause interference or pass through, or in any other way violate the City’s discharge permit conditions, local limits, or regulations. (t) “T” definitions: (1) “Total toxic organics” or “TTO” means the summation of all quantifiable toxic organic compound concentrations greater than 0.01 mg/L. (2) “Toxic organic compound” means any organic pollutant listed in 40 CFR 433.11(e) unless otherwise defined by an applicable categorical pretreatment standard. (3) “Treatment plant” means that portion of the POTW which is designed to provide treatment of municipal sewage and industrial waste. (u) “U” definitions: Reserved (v) “V” definitions: (1) “Vehicle” means a mode of transporting people or things. Vehicles include, but are not limited to, airplanes, automobiles, boats, buses, forklifts, motorcycles, recreational vehicles, tractors, and trucks. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 34  Packet Pg. 161 of 445  *NOT YET APPROVED* 15 0290170_20250418_ms29 (2) “Vehicle service facility” means a commercial or industrial facility that conducts one or more of the following operations with respect to vehicles or components of vehicles: vehicle repair, fuel dispensing, vehicle fluid replacement, engine and parts cleaning, body repair, vehicle salvage and wrecking, or vehicle washing. (w) “W” definitions: (1) “Wastewater” means liquid and water-carried industrial wastes and sewage from residential dwellings, commercial buildings, industrial and manufacturing facilities, and institutions, whether treated or untreated, which are contributed to the POTW. (x) “X” definitions: Reserved (y) “Y” definitions: Reserved (z) “Z” definitions: (1) “Zinc-containing floor finishes” means floor finish solutions containing greater than 0.01% zinc by weight; 16.09.020 Responsibility of the Director. The Director shall administer, implement, and enforce the provisions of this Chapter. The Director shall be responsible for promulgating such orders, rules, and requirements as are necessary to accomplish the purpose of this Chapter, in accordance with the regulations that are or may be promulgated by the EPA, the California State Water Resources Control Board, the San Francisco Bay Regional Water Quality Control Board, the California Department of Public Health, or other duly authorized boards or agencies. Any powers granted to or duties imposed upon the Director may be delegated by the Director to a duly authorized City employee. 16.09.025 Confidentiality. (a) Information and data on an industrial user obtained from reports, surveys, wastewater discharge permit applications, individual wastewater discharge permits, general discharge permits, and monitoring programs, and from the Director’s inspection and sampling activities, shall be available to the public without restriction, unless the industrial user specifically requests, and is able to demonstrate to the satisfaction of the Director, that the release of such information would divulge information, processes, or methods of production entitled to Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 35  Packet Pg. 162 of 445  *NOT YET APPROVED* 16 0290170_20250418_ms29 protection as trade secrets under applicable State law. Any such request must be asserted at the time of submission of the information or data by stamping the words “confidential business information” on each page containing such information. When requested and demonstrated by the discharger furnishing a report that such information should be held confidential, the portions of a report which might disclose trade secrets or secret processes shall not be made available for inspection by the public, but shall be made available immediately upon request to governmental agencies for uses related to the NPDES program or pretreatment program, and in enforcement proceedings involving the person furnishing the report. Wastewater constituents and characteristics and other effluent data, as defined at 40 CFR 2.302 shall not be recognized as confidential information and shall be available to the public without restriction. (b) This Section does not permit a discharger to refuse to disclose information required pursuant to this Chapter to the Director. A discharger may be prohibited from discharging a substance unless its composition is made known to the Director. 16.09.030 Alternate Means and Methods. (a) The Director is authorized to modify any of the provisions of this Chapter upon application in writing by the owner, a lessee or an authorized representative of the discharger where there are practical difficulties in the way of carrying out the provisions of this Chapter, provided that the purpose of this Chapter, as set forth in Section 16.09.005, shall be complied with, and substantial justice done. The particulars of any such modification and the decision of the Director shall be entered upon the records of the POTW and a signed copy shall be furnished to the applicant. (b) The Director, upon application in writing by the owner, a lessee, or an authorized representative of the discharger, and on notice to the Director, is authorized to approve alternate materials or methods, provided that the Director finds that the proposed design, use, or operation satisfactorily complies with the intent of this Chapter and that the material, method of work performed, or operation is, for the purpose intended, at least equivalent to that prescribed in this Chapter in quality and effectiveness in meeting the purposes of this Chapter. Approvals under the authority herein contained shall be subject to the approval of the Director whenever the alternate material or method involves matters regulated by this Chapter. The particulars of any such approval made by the Director shall be entered upon the records of the POTW and a signed copy shall be furnished to the applicant. 16.09.035 Limitations on Point of Discharge. No person shall discharge any substances directly into a manhole or other opening in a City sewer or storm drain system, other than through a City-approved sewer connection or as authorized by an Exceptional Waste Discharge Permit per Section 16.09.180 of this Chapter. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 36  Packet Pg. 163 of 445  *NOT YET APPROVED* 17 0290170_20250418_ms29 16.09.040 Prohibited Discharge Standards. (a) General prohibitions. No discharger shall introduce or cause to be introduced into the POTW any pollutant or wastewater which causes pass through or interference. These general prohibitions apply to all dischargers to the POTW whether or not they are subject to categorical pretreatment standards or any other National, State, or local pretreatment standards or requirements. (b) Specific prohibitions. No discharger shall introduce or cause to be introduced into the POTW the following pollutants, substances, or wastewater: (1) Pollutants which create a fire or explosive hazard in the POTW, including, but not limited to, wastestreams with a closed-cup flashpoint of less than 140 degrees Fahrenheit (60 degrees Centigrade) using the test methods specified in 40 CFR 261.21; (2) Wastewater having a pH less than 5.0 or greater than 11.0, or otherwise causing corrosive structural damage to the POTW or equipment; (3) Solid or viscous substances in amounts which may cause obstruction of the flow in the POTW but in no case solids greater than one-half inch in any dimension; (4) Pollutants, including oxygen-demanding pollutants (BOD, etc.), released in a discharge at a flow rate and/or pollutant concentration which, either singly or by interaction with other pollutants, will cause interference with the POTW; (5) Wastewater which will inhibit the biological activity in the treatment plant resulting in interference, but in no case wastewater which causes the temperature at the introduction into the treatment plant to exceed 104 degrees Fahrenheit (40 degrees Centigrade); (6) Petroleum oil, nonbiodegradable cutting oil, or products of mineral oil origin, in amounts that will cause interference or pass through; (7) Pollutants which result in the presence of toxic gases, vapors, or fumes within the POTW in a quantity that may cause acute worker health and safety problems; (8) Trucked or hauled pollutants, except at discharge points designated by the Director in accordance with Title 16.66 of this code; (9) Noxious or malodorous liquids, gases, solids, or other wastewater which, either singly or by interaction with other wastes, are sufficient to create a public nuisance or a hazard to life, or to prevent entry into the sewers for maintenance or repair; Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 37  Packet Pg. 164 of 445  *NOT YET APPROVED* 18 0290170_20250418_ms29 (10) Wastewater which imparts color which cannot be removed by the treatment process, such as, but not limited to, dye wastes and vegetable tanning solutions, which consequently imparts color to the treatment plant’s effluent, thereby violating the City’s NPDES permit; (11) Wastewater containing any radioactive wastes or isotopes except in compliance with applicable State or Federal regulations; (12) Sludges, screenings, or other residues from the pretreatment of industrial wastes; (13) Wastewater causing, alone or in conjunction with other sources, the treatment plant’s effluent to fail a toxicity test; (14) Detergents, surface-active agents, or other substances which may cause excessive foaming in the POTW; (15) Any substance which, if otherwise disposed of, would be considered a hazardous waste; (16) Any zinc-containing floor finish or a stripper solution that has been used for the stripping of a zinc-containing floor finish, except when the solutions have been treated in a pretreatment unit approved by the Director for removal of zinc; or (17) Fixer solution without prior pretreatment to meet all applicable limits per Section 16.09.055 of this Chapter. (c) Pollutants, substances, or wastewater prohibited by this Section shall not be processed or stored in such a manner that they could be discharged to the sanitary sewer system. 16.09.045 National Categorical Pretreatment Standards. (a) Industrial users shall comply with the categorical pretreatment standards found at 40 CFR Chapter I, Subchapter N, Parts 405-471. In the event of any apparent conflicts between this Chapter and State or Federal regulations, the most stringent provisions shall apply. (b) When wastewater subject to a categorical pretreatment standard is mixed with wastewater not regulated by the same standard, the Director shall impose an alternate limit in accordance with 40 CFR 403.6(e). 16.09.050 Standards for Other Wastes. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 38  Packet Pg. 165 of 445  *NOT YET APPROVED* 19 0290170_20250418_ms29 The Director may establish standards for any wastes not specifically referred to in this Chapter. These standards shall be published and shall be made available to any person upon request. 16.09.055 Local Limits. (a) The Director is authorized to establish local limits pursuant to 40 CFR 403.5(c). (b) The Director may develop best management practices (BMPs), by promulgation of regulations, in individual wastewater discharge permits, or in general discharge permits, to implement local limits and the requirements of this Chapter. The Director may require the implementation of BMPs and require submission of information to evaluate the implementation and effectiveness of BMPs. (c) The following pollutant limits are established to protect against pass through and interference. Unless otherwise specified in this Chapter, no person shall discharge wastewater containing in excess of the following: 0.1 mg/L Arsenic 5.0 mg/L Barium 0.75 mg/L Beryllium 1.0 mg/L Boron 0.1 mg/L Cadmium 1.0 mg/L Chromium, Hexavalent 2.0 mg/L Chromium, Total 1.0 mg/L Cobalt 0.25 mg/L Copper 0.5 mg/L Cyanide 0.1 mg/L Dissolved Sulfides 65 mg/L Fluoride 5.0 mg/L Formaldehyde 0.5 mg/L Lead 1.0 mg/L Manganese 0.1 mg/L Mercaptans 0.01 mg/L Mercury 0.75 mg/L Methyl Tertiary Butyl Ether (MTBE) 0.5 mg/L Nickel 20 mg/L Oil & Grease 200 mg/L Oil & Grease, Total 1.0 mg/L Phenols 1.0 mg/L Selenium 0.25 mg/L Silver 5,000 mg/L Total Dissolved Solids (TDS) – composite Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 39  Packet Pg. 166 of 445  *NOT YET APPROVED* 20 0290170_20250418_ms29 10,000 mg/L Total Dissolved Solids (TDS) – grab 0.75 mg/L Toxic Organic, Single (STO) 1.0 mg/L Toxic Organics, Total (TTO) 3,000 mg/L Total Suspended Solids (TSS) – composite 6,000 mg/L Total Suspended Solids (TSS) – grab 2.0 mg/L Zinc (d) The limits established in subsection (c) of this Section are instantaneous limits, unless indicated otherwise, and shall apply to all discharges to the POTW at appropriate sampling locations determined by the Director. All concentrations for metallic substances are for total metal unless indicated otherwise. The Director may impose mass limitations in addition to the concentration-based limitations established in subsection (c) of this Section. (e) The Director may verify compliance with the TTO limit established in subsection (c) of this Section by sampling and analyzing for only those toxic organic compounds that the Director has determined may be reasonably expected to be present in an industrial user’s discharge. (f) For industrial users with average daily discharges greater than 50,000 gpd through any single sampling location, pollutant limits shall be one-half of the limit established in subsection (c) of this Section, with the exception of copper, mercury, MTBE, nickel, and silver, for which the pollutant limits shall remain 0.25 mg/L, 0.01 mg/L, 0.75 mg/L, 0.5 mg/L, and 0.25 mg/L, respectively, regardless of flow. (g) The limit for copper established in subsection (c) of this Section shall apply to all industrial users, except that: (1) The maximum copper limit shall be 2.0 mg/L for discharges from cooling systems with an average daily blowdown less than or equal to 2,000 gpd, photographic materials processing, dental facilities, vehicle service facilities, and machine shops. (A) The copper limit for cooling systems with an average daily blowdown greater than 2,000 gpd shall be 2.0 mg/L for the first twelve months of operation. The copper limit shall be reduced to 0.25 mg/L after the first twelve months of operation. (B) The Director may impose a higher alternative copper limit for cooling towers when the cycles of concentration routinely exceed ten. The alternative requirement may consist of an alternative concentration limit, a mass limit, a specified maintenance program, or a combination of these. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 40  Packet Pg. 167 of 445  *NOT YET APPROVED* 21 0290170_20250418_ms29 (2) Industrial users subject to regulation under 40 CFR Part 413 or 40 CFR Part 433 shall meet either subdivision (A) or (B) of this subsection. These alternative copper limitations shall apply to discharges from process operations involving copper solutions or materials prior to mixing with wastewater not regulated by 40 CFR Part 413 or 40 CFR Part 433. (A) The annual average concentration of copper discharged shall not exceed 0.40 mg/L. In addition, all reasonable control measures established by the Director shall be installed and implemented; or (B) The annual average mass of copper discharged shall not exceed an amount specified by the Director in an individual wastewater discharge permit, which is based upon a waste minimization study conducted or approved by the Director. The limitation shall be based upon implementation of those reasonable control measures having a simple payback period of five years or less. The annual average mass of copper discharged shall be calculated as a “rolling” measurement, by multiplying the average daily copper mass for all samples taken during any twelve-month period by 365. The annual average copper mass limit may be increased or decreased by the Director in proportion to increases or decreases in production at the industrial user’s facility. (h) The limit for zinc established in subsection (c) of this Section shall not apply to vehicle service facilities. The maximum zinc limit for vehicle service facilities shall be 4.0 mg/L. 16.09.060 City’s Right of Revision. The City reserves the right to establish, by ordinance or in individual wastewater discharge permits, or in general discharge permits, more stringent standards or requirements on discharges to the POTW to carry out the purpose of this Chapter. No revision of standards or requirements hereunder shall subject the City to civil liability or penalty for interference with a vested right of any discharger. 16.09.065 Dilution. Except where expressly authorized to do so by the Director or an applicable pretreatment standard or requirement, no industrial user shall ever increase the use of process water, or in any way, dilute or attempt to dilute a discharge as a partial or complete substitute for adequate treatment to achieve compliance with a pretreatment standard or requirement or any other provision of this Chapter. The Director may impose mass limitations on industrial users which are using dilution to meet applicable pretreatment standards or requirements, or in other cases when the imposition of mass limitations is appropriate. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 41  Packet Pg. 168 of 445  *NOT YET APPROVED* 22 0290170_20250418_ms29 16.09.070 Unpolluted Water. Unpolluted water shall not be discharged through direct or indirect connection to the sanitary sewer system unless specifically authorized in writing by the Director. As used in this Section, unpolluted water includes, but is not limited to, stormwater, surface water, groundwater, artesian well water, and subsurface drainage which meets all State, Federal, and local requirements for discharge to surface waters of the United States. The Director may approve the discharge of such water to the sanitary sewer system only when no reasonable alternative method of disposal is available. 16.09.075 Discharge Permit Required. (a) Significant industrial users must obtain an individual wastewater discharge permit to discharge process wastewater into the POTW. (b) The Director may require other industrial users to obtain individual wastewater discharge permits or general discharge permits as necessary to carry out the purpose of this Chapter. (c) Any violation of the terms and conditions of an individual wastewater discharge permit or a general discharge permit shall be deemed a violation of this Chapter and subjects the permittee to the enforcement provisions set forth in this Chapter. Obtaining an individual wastewater discharge permit or a general discharge permit does not relieve a permittee of its obligation to comply with all Federal and State pretreatment standards or requirements or with any other requirements of Federal, State, and local law, including those that become effective during the term of the discharge permit. (d) Any industrial user required to obtain an individual wastewater discharge permit or a general discharge permit who proposes to begin or recommence discharging into the POTW must obtain such permit prior to the beginning or recommencing of such discharge. An application for an individual wastewater discharge permit or general discharge permit, in accordance with Section 16.09.080 of this Chapter, must be filed at least ninety (90) calendar days prior to the date upon which any discharge will begin or recommence. (e) The Director may use general discharge permits to control industrial waste discharges to the sanitary sewer system if the following conditions are met. All facilities to be covered by a general discharge permit must: (1) Involve the same or substantially similar types of operations; Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 42  Packet Pg. 169 of 445  *NOT YET APPROVED* 23 0290170_20250418_ms29 (2) Discharge the same types of wastes; (3) Require the same effluent limitations; (4) Require the same or similar monitoring; and (5) In the opinion of the Director, are more appropriately controlled under a general discharge permit than under individual wastewater discharge permits. (f) An individual wastewater discharge permit or general discharge permit shall include such conditions as are deemed reasonably necessary by the Director to prevent pass through or interference, protect the quality of the water body receiving the treatment plant’s effluent, protect worker health and safety, facilitate sludge management and disposal, ensure compliance with this Chapter and applicable State and Federal law, and protect against damage to the POTW. Individual wastewater discharge permits or general discharge permits may include, but are not limited to the following conditions: (1) An effective date and expiration date. The expiration date is not to exceed five (5) years from the effective date of the permit. An individual wastewater discharge permit or general discharge permit may be issued for a period less than five years from the effective date of the permit, at the discretion of the Director; (2) Requirements for the installation and maintenance of pretreatment technology, pollution control, or construction of appropriate containment devices, designed to reduce, eliminate, or prevent the introduction of pollutants into the POTW and compliance schedules for meeting these requirements; (3) Effluent limitations, including BMPs, based upon applicable pretreatment standards or requirements; (4) Self-monitoring, sampling, reporting, notification, and record keeping requirements. These requirements shall include implementation requirements for best management practices, identification of pollutants to be monitored, sampling location, sampling frequency, and sample type based on Federal, State, and local law; (5) Prohibition of discharge of certain wastewater components; (6) Installation and maintenance of inspection, sampling, and flow measurement equipment and facilities; (7) Limits on average and/or maximum rate of discharges, time of discharge, and/or requirements for flow regulation and equalization; Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 43  Packet Pg. 170 of 445  *NOT YET APPROVED* 24 0290170_20250418_ms29 (8) Requirements to control slug discharge, if determined by the Director to be necessary; (9) Requiring payment of additional charges to defray increased costs of the City created by the wastewater discharge; (10) Implementation of BMPs, specific investigations, or studies to determine methods of reducing pollutants in the discharge; (11) The process for seeking a waiver from monitoring and any grant of a monitoring waiver issued by the Director for a pollutant neither present nor expected to be present in the Discharge in accordance with Section 16.09.100 of this Chapter. (12) Statement of non-transferability pursuant to subsection (g); and (13) Statement of applicable civil and criminal penalties for violation of Pretreatment Standards and Requirements, and any applicable compliance schedule. (g) No individual wastewater discharge permit or coverage under a general discharge permit is transferable without prior written consent of the Director. A change of ownership (including a transfer of the majority of shares in a corporate discharger) of the waste generating facility requires submittal of a new discharge permit application and payment of applicable fees. 16.09.080 Discharge Permit Application Procedure. (a) An applicant for a discharge permit shall complete and submit a discharge permit application form established by the Director. The Director may require information in addition to that required on the discharge permit application form as deemed reasonable or necessary to evaluate the discharge permit application. (b) All wastewater discharge permit applications and industrial user reports must contain certification statements signed by an authorized representative. (c) Completed discharge permit applications shall be filed by the discharger not less than ninety (90) calendar days in advance of commencing or recommencing discharge. The discharger shall not commence or recommence discharge prior to obtaining a discharge permit without specific, interim approval from the Director to discharge during the permitting process. Discharge permit applications for exceptional waste and root and pest control, as specified in Sections 16.09.180 and 16.09.185 of this Chapter, are not subject to the ninety (90) calendar day requirement of this subsection. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 44  Packet Pg. 171 of 445  *NOT YET APPROVED* 25 0290170_20250418_ms29 (d) Any industrial user with an expiring individual wastewater discharge permit or general discharge permit shall apply for permit reissuance by submitting a complete discharge permit application, in accordance with Section 16.09.080 of this Chapter, not less than ninety (90) calendar days prior to the expiration of the industrial user’s existing individual wastewater discharge permit or general discharge permit. (e) The Director may deny any application for an individual wastewater discharge permit or coverage under a general discharge permit for good cause, including, but not limited to, the following reasons: (1) The application contains false or misleading information; (2) The issuance of the discharge permit would result in a discharge of such quantity or strength that the public health, safety, or public or private property are endangered; (3) The issuance of the discharge permit would cause the POTW to violate any NPDES permit conditions, or any Federal, State, or local laws or regulations; (4) The applicant has not provided adequate information to establish that its discharge will comply with all requirements of this Chapter and with such other terms and conditions as the Director may deem necessary to include in the applicant's discharge permit; (5) The applicant has not provided plans for sufficient protection from accidental discharges to the land, storm drain system, or sanitary sewer system; or (6) The applicant has failed to pay or has outstanding fees, fines, or penalties owed to the City. (f) If the Director denies a permit application, application fees shall not be returned to the applicant unless the Director has ascertained that a permit is not required to discharge the wastewater for which the permit application is made. (g) Incomplete or inaccurate applications will not be processed. (h) The Director shall post applications for wastewater discharge permits by significant industrial users on a City web page. Interested parties and other members of the public may comment on the issuance of a permit within forty-five (45) days of issuance. The permit effective date shall not be postponed solely because of the submittal of comments, however comments shall be considered by the Director for incorporation into future permit modification(s). 16.09.085 Discharge Permit Modification. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 45  Packet Pg. 172 of 445  *NOT YET APPROVED* 26 0290170_20250418_ms29 (a) The Director may modify any individual wastewater discharge permit or general discharge permit for good cause, including, but not limited to, the following reasons: (1) To incorporate any new or revised Federal, State, or local pretreatment standards or requirements; (2) To address significant alterations or additions to the discharger's operation, processes, or wastewater volume or character since the time of the wastewater discharge permit issuance; (3) A change in the POTW that requires either a temporary or permanent reduction or elimination of the authorized discharge; (4) Information indicating that the permitted discharge poses a threat to the POTW, City personnel, or the receiving waters; (5) Violation of any terms or conditions of the wastewater discharge permit; (6) Misrepresentations or failure to fully disclose all relevant facts in the wastewater discharge permit application or in any required reporting; (7) Revision of or a grant of variance from categorical pretreatment standards; (8) To correct typographical or other errors in the wastewater discharge permit; (9) To reflect a transfer of the facility ownership or operation to a new owner or operator where requested in accordance with Section 16.09.075(g) of this Chapter; or (10) To implement programs or policies required or requested of the City by appropriate Federal, State, or local regulatory agencies. 16.09.090 Inspection and Sampling. (a) The Director may conduct all inspection, surveillance, sampling, records examination and copying, and monitoring necessary to assure compliance with applicable Federal, State, and local regulations. (b) The Director shall have the right to enter, without unreasonable delay, the premises of any discharger for the purposes of inspection, surveillance, sampling, monitoring, Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 46  Packet Pg. 173 of 445  *NOT YET APPROVED* 27 0290170_20250418_ms29 records examination and copying, and for performance of any additional duties to assure compliance with this Chapter and applicable Federal, State, and local regulations. Unreasonable delays in allowing the Director access to the discharger’s premises shall be a violation of this Chapter. (c) If the Director has been refused access to a building, structure, or property, or any part thereof, and is able to demonstrate probable cause to believe that there may be a violation of this Chapter, or that there is a need to inspect and/or sample as part of a routine inspection and sampling program of the City designed to verify compliance with this Chapter or any permit or order issued hereunder, or to protect the overall public health, safety, and welfare of the community, the Director may seek issuance of a warrant from the Superior Court of California. (d) Where a discharger has security measures in force which require proper identification and clearance before entry into its premises, the discharger shall make necessary arrangements with its security personnel so that, upon presentation of suitable identification, the Director shall be permitted to enter without delay for the purposes of performing specific responsibilities. (e) The Director may require dischargers to provide and maintain one or more sampling locations or volume and flow measuring points approved by the Director which will allow the separate measuring and sampling of industrial waste and sewage. Sampling locations shall be so located that they are safe and accessible to the Director at any reasonable time during which discharge may occur. (f) The Director shall have the right to set up on the discharger’s property, or require installation of, such devices as are necessary to conduct sampling and/or metering of the discharger’s operations. 16.09.095 Self-Monitoring. (a) The Director may require a discharger to conduct a wastewater sampling and analysis program of a frequency and type sufficient to demonstrate compliance with the requirements of this Chapter. The Director shall specify the minimum frequency, type, and number of samples as well as flow monitoring, measuring, and sample analyses to be conducted by the discharger in the discharge permit. Monitoring not specified in a discharge permit may be required by the Director as deemed reasonable or necessary to ensure compliance with the provisions of this Chapter. The Director may also require self-monitoring for facilities for which a discharge permit has not been issued. (b) Samples collected to satisfy reporting requirements must be based on data obtained through appropriate sampling and analysis and must be representative of the discharger’s discharge. Wastewater monitoring and flow measurement facilities shall be properly Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 47  Packet Pg. 174 of 445  *NOT YET APPROVED* 28 0290170_20250418_ms29 operated, kept clean, and maintained in good working order at all times. The failure of an industrial user to keep its monitoring facility in good working order shall not be grounds for the industrial user to claim that sample results are unrepresentative of its discharge. (c) Except as indicated in subsections (d) and (e) below, the industrial user must collect wastewater samples using 24-hour flow-proportional composite sampling techniques, unless time-proportional composite sampling or grab sampling is authorized by the Director. Where time-proportional composite sampling or grab sampling is authorized by the Director, the samples must be representative of the discharge. Using protocols (including appropriate preservation) specified in 40 CFR Part 136 and appropriate EPA guidance, multiple grab samples collected during a 24-hour period may be composited prior to the analysis as follows: for cyanide, total phenols, and sulfides the samples may be composited in the laboratory or in the field; for volatile organics and oil and grease, the samples may be composited in the laboratory. Composite samples for other parameters unaffected by the compositing procedures as documented in approved EPA methodologies may be authorized by the Director, as appropriate. (d) Samples for oil and grease, temperature, pH, cyanide, total phenols, sulfides, and volatile organic compounds must be obtained using grab collection techniques. (e) For sampling required in support of baseline monitoring and 90-day compliance reports, a minimum of four (4) grab samples must be used for pH, cyanide, total phenols, oil and grease, sulfide, and volatile organic compounds for facilities for which historical sampling data do not exist; for facilities for which historical sampling data are available, the Director may authorize a lower minimum. For PRCCs, the industrial user is required to collect the number of grab samples necessary to assess and assure compliance with applicable pretreatment standards and requirements. (f) The Director may authorize an industrial user to sample for a subset of toxic organic compounds to verify compliance with the TTO limit established in Section 16.09.055 of this Chapter based on what the Director has determined may be reasonably expected to be present in an industrial user’s discharge. (g) The Director may specify the type of sampling, pH, and flow monitoring equipment that must be installed by the discharger and used for discharger self-monitoring. Flow monitoring devices shall be calibrated at a frequency of at least once per year or at an alternative frequency specified by the Director. pH monitoring devices shall be calibrated at a frequency of at least once every six months or more frequently if recommended by the manufacturer or at an alternative frequency as specified by the Director. (h) All pollutant analyses, including sampling techniques, to be submitted as part of a discharge permit application or report shall be performed in accordance with the techniques prescribed in 40 CFR Part 136 and amendments thereto, unless otherwise specified in an Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 48  Packet Pg. 175 of 445  *NOT YET APPROVED* 29 0290170_20250418_ms29 applicable categorical pretreatment standard. If 40 CFR Part 136 does not contain sampling or analytical techniques for the pollutant in question, or where the EPA determines that the Part 136 sampling and analytical techniques are inappropriate for the pollutant in question, sampling and analyses shall be performed by using validated analytical methods or any other applicable sampling and analytical procedures suggested by the Director or other parties approved by the EPA. Samples shall be obtained and analyzed at the discharger’s expense. Samples shall be analyzed by a laboratory accredited by the California State Water Resources Control Board for the pollutant or pollutant properties being analyzed. (i) The detection limit used by the discharger for those substances reported as non- detectable shall be no greater than one-tenth the lowest applicable pretreatment standard. (j) Records of self-monitoring shall include the following: (1) Sample Collection Information: date, location, method, preservation, time, and the name of individual collecting the samples; (2) Analytical Information: dates, names of analysts, techniques or methods used, and the results of such analyses. (k) All records generated pursuant to this Section shall be maintained and made available for inspection and copying as described in Section 16.09.155 of this Chapter. 16.09.100 Monitoring Waiver. (a) The Director may authorize an industrial user subject to categorical pretreatment standards to forego sampling of a pollutant regulated by a categorical pretreatment standard if the industrial user has demonstrated through sampling and other technical factors that the pollutant is neither present nor expected to be present in the industrial user’s discharge, or is present only at background levels from intake water and without any increase in the pollutant due to activities of the industrial user. This authorization is subject to the following conditions: (1) The waiver may be authorized where a pollutant is determined to be present solely due to sanitary wastewater discharged from the facility provided that the sanitary wastewater is not regulated by an applicable categorical pretreatment standard and otherwise includes no process wastewater. (2) The monitoring waiver is valid only for the duration of the effective period of the individual wastewater discharge permit, but in no case longer than five (5) years. The industrial user must submit a new request for the waiver before the waiver can be granted for each subsequent individual wastewater discharge permit. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 49  Packet Pg. 176 of 445  *NOT YET APPROVED* 30 0290170_20250418_ms29 (3) In making a demonstration that a pollutant is not present, the industrial user must provide data from at least one sampling of the facility’s process wastewater prior to any treatment present at the facility that is representative of all wastewater from all processes. (4) The request for a monitoring waiver must be signed by an authorized representative of the industrial user and include the certification statement in 40 CFR 403.6(a)(2)(ii). (5) Non-detectable sample results may be used only as a demonstration that a pollutant is not present if the EPA approved method from 40 CFR Part 136 with the lowest minimum detection level for that pollutant was used in the analysis. (6) Any grant of the monitoring waiver by the Director must be included as a condition in the industrial user’s discharge permit. The reasons supporting the waiver and any information submitted by the industrial user in its request for the waiver shall be maintained by the Director for a period of three (3) years after expiration of the waiver. (7) Upon approval of the monitoring waiver and revision of the industrial user’s discharge permit by the Director, the industrial user must certify on each report that there has been no increase in the pollutant in its wastestream due to activities of the industrial user, in accordance with the reporting requirements in 40 CFR 403.12(e)(2)(v). (8) In the event that a waived pollutant is found to be present or is expected to be present because of changes that occur in the industrial user’s operations, the industrial user shall immediately notify the Director and shall monitor for the waived pollutant at least once during each PRCC reporting period or more frequently if directed by the Director. (b) This Section does not supersede certification processes and requirements established in categorical pretreatment standards, except as otherwise specified in the categorical pretreatment standard. 16.09.105 Pretreatment Facilities. (a) Industrial users shall provide wastewater pretreatment as necessary to comply with this Chapter and shall achieve compliance with all categorical pretreatment standards, local limits, and the prohibitions contained in Section 16.09.040 of this Chapter within the time limitations specified by EPA, the State, or the Director, whichever is most stringent. Industrial users shall, at all times, properly operate and maintain all facilities and systems of treatment, disposal, monitoring, and control (and related appurtenances) which are installed or used by the industrial user to achieve compliance with this Chapter and/or their wastewater discharge permit. Any facilities necessary for compliance shall be provided, operated, and maintained at the industrial user’s expense. All required facilities and systems of treatment and operations and Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 50  Packet Pg. 177 of 445  *NOT YET APPROVED* 31 0290170_20250418_ms29 maintenance procedures shall be described in detailed plans, operations and maintenance manuals, and standard operating procedures. Plans, operations and maintenance manuals, and standard operating procedures shall be submitted to the Director for review, and shall be acceptable to the Director before such facilities and/or procedures are constructed and/or implemented. The review of such plans and operating procedures shall in no way relieve the industrial user from the responsibility of modifying such facilities and/or procedures as necessary to produce a discharge acceptable to the City under the provisions of this Chapter. Industrial users shall keep in a state of readiness all systems installed to achieve compliance with the provisions of this Chapter and/or their wastewater discharge permit. All systems, both those in service and reserve, shall be inspected and maintained on a regular basis. (b) Inspection and maintenance records for process and pollution control and monitoring systems shall be maintained and made available for inspection and copying as described in Section 16.09.155 of this Chapter. (c) It shall be unlawful to tamper with, divert flow from, or render inaccurate any monitoring device or equipment installed or operated to comply with pretreatment standards or requirements, this Chapter, or a discharge permit. Doing so constitutes falsification of information as described in Section 16.09.145 of this Chapter. (d) Whenever deemed necessary, the Director may require industrial users to restrict their discharge during peak flow periods, designate that certain wastewater be discharged only into specific sewers, relocate and/or consolidate points of discharge, separate sewage wastestreams from industrial wastestreams, and such other conditions as may be necessary to protect the POTW and determine the industrial user’s compliance with the requirements of this Chapter. (e) The Director may require any person discharging into the POTW to install and maintain, on their property and at their expense, a suitable storage and flow-control facility to ensure equalization of flow. An individual wastewater discharge permit may be issued solely for flow equalization. (f) The Director may require any discharger to install settling chambers or equivalent pretreatment systems where necessary to prevent the entry of inert solids into the sanitary sewer system. For the purposes of this Section, “inert solids” shall mean solid substances including, but not limited to: sand, rocks, dirt, glass, metal, wood, bone, or plastic; (g) Grease, oil, and sand interceptors shall be provided by the discharger when, in the opinion of the Director, they are necessary for the proper handling of wastewater containing excessive amounts of grease and oil, or sand; except that such interceptors shall not be required for residential users. All interception units shall be of a type and capacity approved by the Director and shall be so located to be easily accessible for cleaning and inspection. Such Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 51  Packet Pg. 178 of 445  *NOT YET APPROVED* 32 0290170_20250418_ms29 interceptors shall be inspected, cleaned, and repaired at the discharger’s expense in accordance with guidelines established by the Director. This subsection shall apply in addition to any applicable requirements of Chapter 16.13 of this Code. 16.09.110 Personnel Orientation. (a) Dischargers shall take necessary steps to inform appropriate personnel of the provisions of this Chapter and specifically, any operations and maintenance manuals and standard operating procedures required by this Chapter. Such personnel shall include, but not be limited to, workers, contractors, supervisors, and managers whose duties or responsibilities pertain in any manner to the production, treatment, or disposal of wastes regulated by this Chapter. (b) Steps to inform such personnel shall include, but not be limited to: (1) Orientation of newly employed or assigned personnel prior to commencement of work and at least annually thereafter; (2) Posting of signs at work areas indicating approved methods for disposition of wastes and reporting requirements and instructions for accidental spills and increased loadings; and (3) Posting of signs visible from each drainage area (sink, cup sink, floor drain, etc.) not connected to appropriate treatment indicating “NOTICE – DO NOT DISPOSE OF CHEMICALS IN THIS DRAIN” or equivalent. (c) All signs shall be translated into the primary language(s) of personnel whose duties or responsibilities pertain in any manner to the production, treatment or disposal of wastes regulated by this Chapter, unless the primary language of all personnel is English. 16.09.115 Accidental Discharge Prevention. (a) Industrial users shall provide adequate protection to prevent accidental discharge of hazardous or prohibited materials, slugs, or other wastes regulated by this Chapter. Where directed by the Director the industrial user shall install retention basins, dikes, storage tanks, or other facilities in conformance with Title 17 of this code designed to eliminate, neutralize, offset or otherwise negate the effects of prohibited materials or wastes which may be accidentally discharged in violation of Chapter 16.09. (b) Each industrial user shall notify the City immediately of any changes at its facility affecting the potential for a slug discharge as required by Section 16.09.135 of this Chapter. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 52  Packet Pg. 179 of 445  *NOT YET APPROVED* 33 0290170_20250418_ms29 (c) The Director may require any industrial user to develop, submit, and implement a slug control plan or take such other action that may be necessary to control slug discharges. A slug control plan shall contain, at a minimum, the following: (1) Description of discharge practices, including non-routine batch discharges; (2) Description of stored chemicals; (3) Procedures for immediately notifying the Director of slug discharges, as required by Section 16.09.135 of this Chapter; and (4) Procedures to prevent adverse impact from any accidental or slug discharge. Such procedures include, but are not limited to, inspection and maintenance of storage areas, handling and transfer of materials, loading and unloading operations, control of plant site runoff, worker training, building of containment structures or equipment, measures for containing toxic organic pollutants, including solvents, and/or measures and equipment for emergency response. 16.09.120 Reporting and Certification Requirements for Industrial Users. (a) Industrial users are subject to the reporting and certification requirements contained in Title 40 CFR Part 403. (b) Industrial users shall submit PRCCs to the Director every six months, on January 15th and July 15th of each calendar year. The Director may require more frequent reporting for individual industrial users as deemed reasonable or necessary to ensure compliance with the provisions of this Chapter. (c) All PRCCs must be signed by an authorized representative and contain appropriate certification statements. If the designation of an authorized representative is no longer accurate because a different individual or position has responsibility for the overall operation of the facility or overall responsibility for environmental matters for the company, a new written authorization satisfying the requirements of this Section must be submitted to the Director prior to or together with any reports to be signed by an authorized representative. (d) PRCCs shall be completed according to guidelines established by the Director. In cases where a pretreatment standard requires compliance with a BMP or pollution prevention alternative, the industrial user must submit documentation required by the Director or the categorical pretreatment standard necessary to determine the compliance status of the industrial user. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 53  Packet Pg. 180 of 445  *NOT YET APPROVED* 34 0290170_20250418_ms29 (e) The Director may require information on facility operations in addition to that required on PRCC forms as deemed necessary to evaluate industrial user compliance during the reporting period. (f) If an industrial user subject to the reporting requirements in this Chapter monitors any regulated pollutant at an appropriate sampling location more frequently than required and in accordance with the techniques prescribed in 40 CFR Part 136 and amendments thereto, the results of this monitoring shall be reported in the industrial user’s PRCC. (g) A discharger determined to be a non-significant categorical industrial user by the Director pursuant to Section 16.09.015(s)(5)(C) of this Chapter must annually submit the signed certification in accordance with 40 CFR 403.3(v)(2) and an alternative PRCC required by the Director. (h) The Director may establish an electronic submittal program for submission of reports, documents, and data pursuant to 40 CFR Part 3. (i) Industrial users that send electronic (digital) documents to the Director to satisfy the requirements of this Section must meet all Federal, State, and local electronic signature requirements. Electronic data shall be in a format required by the Director. The Director may require reporting in both digital and traditional format. (j) Industrial users that send electronic documents to the Director to satisfy the requirements of this Section must register for the system online and submit a signed subscriber agreement to the Director. An electronic submission shall be deemed to have been properly received by the Director when it is received by the electronic system, accessible by RWQCP staff and a confirmation is sent to the signatory making the submission. When the sender receives confirmation and can fully review the submitted materials, the report and related data shall be considered received. (k) Electronic submittal of reports, documents, and data by any person under an electronic submittal program established by the Director is subject to the following requirements: (1) A person is subject to any appropriate civil or criminal penalties, or other remedies under Federal, State or local law for failure to comply with a reporting requirement if the person does not comply with the applicable provisions of the established electronic submittal program; (2) In the event that any submittal under the established electronic submittal program bears an electronic signature, the electronic signature has the same effect under this Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 54  Packet Pg. 181 of 445  *NOT YET APPROVED* 35 0290170_20250418_ms29 Section as if the submitting person had instead submitted a paper document with a wet signature; (3) Proof that a particular electronic signature device was used to create an electronic signature included in reports, documents or data submitted under the established electronic submittal program shall be sufficient to establish that the individual uniquely entitled to use the electronic signature device at the time of signature did so with the intent to sign the electronic report, document or data and thereby validate and give effect to the electronic submittal; and (4) Nothing in the established electronic submittal program limits the use of the electronically submitted reports, documents, or data or any information contained therein as evidence in enforcement proceedings. (l) Failure to submit required reports by the specified due date shall be considered a violation of the provisions of this Chapter. The Director may allow submission of required reports on the following business day in instances where the due date falls on a weekend or a holiday. 16.09.125 Reports from Unpermitted Users. Dischargers not required to obtain an individual wastewater discharge permit or coverage under a general discharge permit shall provide reports to the Director as deemed reasonable or necessary by the Director. 16.09.130 Reports of Changed Conditions and Final Closure. Each industrial user shall notify the Director of any significant changes to the industrial user’s operations or system which might alter the nature, quality, or volume of its wastewater, including but not limited to facility or process closure, at least thirty (30) calendar days before the change. (a) The Director may require the industrial user to submit such information as may be deemed necessary to evaluate the changed condition, including the submission of a wastewater discharge permit application under Section 16.09.080 of this Chapter. (b) The Director may issue an individual wastewater discharge permit or a general discharge permit under Section 16.09.075 of this Chapter or modify an existing individual wastewater discharge permit or a general discharge permit under Section 16.09.085 of this Chapter in response to changed conditions or anticipated changed conditions. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 55  Packet Pg. 182 of 445  *NOT YET APPROVED* 36 0290170_20250418_ms29 (c) For the purposes of this Section, “final closure” means closure of an industrial or commercial facility when an entire building is being vacated by the current discharger, or when a discharger’s use of an entire building will no longer include use of hazardous materials. Prior to final closure of any industrial or commercial facility, the Director may require cleaning, inspection, and/or testing of the facility’s sanitary sewer lines, appurtenances, and/or devices at the discharger’s expense to ensure that the integrity of the sewer lines has not been compromised and to determine the quantity and pollutant content of sediments. Inspection and/or testing to ensure the integrity of sewer lines may be required at the discharger’s expense when the discharger’s discharge history at that facility includes pH fluctuations, or when past discharges may have compromised or call into question the integrity of the sewer lines. Inspection and/or testing to determine the quantity and pollutant content of sediments may be required when the discharger’s type of operations and pollutant content of discharges make the presence of contaminated sediments likely. Inspection and testing may include, but not be limited to, pressurized testing, smoke testing, video camera inspection, and/or analytical testing of sediments for pollutants regulated by the discharger’s discharge permit. Where contaminated sediments or compromised sewer lines are identified, responses may include, but are not limited to, requiring replacement of compromised sewer lines and requiring removal of contaminated sediments from sewer lines at discharger’s expense. In lieu of analytical testing, facilities may elect to remove sediments from sewer lines in a manner approved by the Director. 16.09.135 Reports of Potential Problems and Accidental Discharges. (a) In the case of any discharge, including, but not limited to, accidental discharges, discharges of a nonroutine, episodic nature, a noncustomary batch discharge, or a slug discharge that might cause problems for the POTW, the discharger shall immediately telephone and notify the Director of the incident at (650) 329-2122 or (650) 329-2598. If the discharger is unable to reach a live person at the POTW, the industrial user shall immediately notify the City by calling the City of Palo Alto 24-hour Dispatch Center at (650) 329-2413. This notification shall include the location of the discharge, type of waste, concentration and volume, if known, and corrective actions taken by the discharger. (b) The discharger shall immediately take action to stop, contain, and cleanup unauthorized discharges or otherwise stop the noncompliance with this Chapter, and correct the problem. (c) Unless directed otherwise by the Director, as soon as practicable and throughout the incident, the discharger shall collect representative samples at the point of release and at any impacted sampling location(s) and provide analytical results to the Director. (d) Within five (5) business days following such discharge, the discharger shall, unless waived by the Director, submit a detailed written report describing the cause(s) of the discharge and the measures to be taken by the discharger to prevent similar future occurrences. Such Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 56  Packet Pg. 183 of 445  *NOT YET APPROVED* 37 0290170_20250418_ms29 notification shall not relieve the discharger of any expense, loss, damage, or other liability which might be incurred as a result of damage to the POTW, natural resources, or any other damage to person or property; nor shall such notification relieve the discharger of any fines, penalties, or other liability which may be imposed pursuant to this Chapter. (e) A notice shall be permanently posted on the discharger’s bulletin board or other prominent place advising employees who to call in the event of a discharge described in subsection (a), above. Employers shall ensure that all employees, who could cause such a discharge to occur, are advised of the emergency notification procedure. (f) Significant industrial users are required to notify the Director immediately of any change at its facility affecting the potential for a slug discharge. 16.09.140 Reports of Noncompliance. (a) Noncompliance with the provisions of this Chapter, or the provisions of any discharge permit issued pursuant to this Chapter shall be reported to the Director within twenty-four (24) hours of becoming aware of the noncompliance. Reports of noncompliance related to discharge that might cause potential problems for the POTW are to be reported pursuant to section 16.09.135 of this Chapter. If the noncompliance is related to sampling performed by an industrial user, the industrial user shall repeat the sampling and analysis and submit the results of the repeat analysis to the Director within thirty (30) calendar days after becoming aware of the noncompliance. Resampling by the industrial user is not required if the City performs sampling at the industrial user’s facility at least once a month, or if the City performs sampling at the industrial user’s facility between the time when the initial sampling was conducted and the time when the industrial user or the City receives the results of this sampling, or if the City has performed the sampling and analysis in lieu of the industrial user. (b) Such notification shall not relieve the discharger of any expense, loss, damage, or other liability which might be incurred as a result of damage to the POTW, natural resources, or any other damage to person or property; nor shall such notification relieve the discharger of any fines, penalties, or other liability which may be imposed pursuant to this Chapter. 16.09.145 Falsification of Information. It shall be unlawful for any person to make any false statements, representations, or certifications in any application, record, report, plan, or other documentation filed, or required to be maintained, pursuant to this Chapter, an individual wastewater discharge permit, general discharge permit, or order issued hereunder, or who falsifies, tampers with, diverts flow from, or knowingly renders inaccurate any monitoring device or method required under this Chapter. A person who knowingly makes any such false statements, representations, or certifications shall be subject to: Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 57  Packet Pg. 184 of 445  *NOT YET APPROVED* 38 0290170_20250418_ms29 (a) The provisions of 18 U.S.C. Section 1001 relating to fraud and false statements; (b) The provisions of Section 309(c)(4) of the Clean Water Act (33 U.S.C. Section 1319(c)(4) as amended, governing false statements, representations or certification; (c) The provisions of Section 309(c)(6) of the Clean Water Act (33 U.S.C. Section 1319(c)(6) regarding responsible corporate officers; and (d) Enforcement under Section 16.09.200 of this Chapter. 16.09.150 Date of Receipt of Reports. Written reports will be deemed to have been submitted on the date postmarked. For reports that are not mailed, postage prepaid, into a mail facility serviced by the United States Postal Service, the date of receipt of the report shall govern. 16.09.155 Retention of Records. Industrial users subject to the reporting requirements of this Chapter shall retain, and make available for inspection and copying without unreasonable delay, all records of information obtained pursuant to this Chapter including, but not limited to, any required monitoring activities, any additional records of information obtained pursuant to monitoring activities undertaken by the industrial user independent of such requirements, hazardous waste manifests, and documentation associated with BMPs. This includes electronic data and information records maintained and/or submitted in accordance with Section 16.09.120 of this Chapter. Records shall include the date, exact place, method, and time of sampling, and the name of the person(s) taking the samples; the dates analyses were performed; who performed the analyses; the analytical techniques or methods used; and the results of such analyses. All records required to be maintained by this Chapter shall remain available for a period of at least three (3) years. This period shall be automatically extended for the duration of any unresolved litigation concerning the industrial user or the City, or where the industrial user has been specifically notified of a longer retention period by the Director. 16.09.160 Requirements for Sinks and Drains. (a) Interior (indoor) floor drains may not be placed in areas where hazardous materials, hazardous wastes, industrial wastes, industrial process water, lubricating fluids, vehicle fluids, or vehicle equipment cleaning wastewater are used or stored. The Director may allow an exception to this requirement under the following circumstances: Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 58  Packet Pg. 185 of 445  *NOT YET APPROVED* 39 0290170_20250418_ms29 (1) When the drain is connected to a wastewater treatment unit approved by the Director; (2) When the drain is protected from spills by a berm system; (3) When secondary containment is provided for all such materials and equipment; (4) For safety showers: When the drain is installed with a temporary plug which remains closed except when the shower is in use, or when the drain is protected from spills by either a covered sump or berm system; (5) For industrial process equipment: If the equipment does not contain hazardous materials or hazardous waste and if all floor drains are equipped with fail-safe valves which shall be kept closed during periods of operation. (b) Exterior (outdoor) drains may be connected to the sanitary sewer system only if the area in which the drain is located is covered and protected from rainwater run-on by berms and/or grading, and appropriate wastewater pretreatment approved by the Director is provided. (c) Aspirators connected to laboratory sink faucets are prohibited. Aspirators designed and used for transferring acids and bases from stationary, permanent laboratory sinks to treatment facilities shall be allowed. (d) No chemicals or hazardous material shall be stored above a sink that is connected to the sanitary sewer system. Laboratory countertops and laboratory sinks shall be separated by a berm which prevents hazardous materials spilled on the countertop from draining to the sink. (e) Sewer traps below laboratory sinks shall be made of glass or other approved transparent materials to allow inspection and to determine frequency of cleaning. Alternatively, a removable plug for cleaning the trap may be provided, in which case a cleaning frequency shall be established by the Director. The Director may grant an exception to this requirement for areas where mercury or mercury-containing equipment will not be stored or used; provided, that in the event such an exception is granted and mercury or mercury-containing equipment is subsequently stored or used in the area, the sink trap shall be retrofitted at the discharger’s expense to meet this requirement prior to storage or use of mercury or mercury-containing equipment. 16.09.165 Requirements for Newly Constructed, Remodeled, Improved, or Converted Commercial and Industrial Facilities. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 59  Packet Pg. 186 of 445  *NOT YET APPROVED* 40 0290170_20250418_ms29 (a) The following requirements apply, where applicable or necessary to effectuate the objectives of this Chapter, to new construction, remodels, improvement, or conversions of commercial and industrial facilities that require a planning entitlement or building permit from the City: (1) Dischargers of industrial waste shall be in full compliance with the provisions of this Chapter prior to commencement of discharge into the sanitary sewer system; (2) Upon request of the Director, dischargers shall complete a waste minimization study in accordance with guidelines established by the Director; (3) Industrial waste shall be separated from sewage by means of separate plumbing prior to a point determined acceptable by the Director for location of industrial waste pretreatment and/or monitoring equipment; (4) Sinks as well as exterior and interior drains are subject to the requirements of and shall be in compliance with Section 16.09.160 of this Chapter; (5) Copper, copper alloys, lead, and lead alloys, including brass, shall not be used in sewer lines, connectors, or seals coming in contact with sanitary sewage except for domestic waste sink traps and short lengths of associated connecting pipes where alternate materials are not practical; (6) Sacrificial zinc anodes are not permitted to be in contact with the water supply in a water distribution system; (7) Discharge drains for pools, spas, and fountains shall not be connected directly to the storm drain system or to the sanitary sewer system. (8) If installed, parking garage floor drains on interior levels shall be connected to an oil-water separator prior to discharging to the sanitary sewer system. The oil-water separator shall be cleaned at a frequency of at least once every twelve (12) months or more frequently if recommended by the manufacturer or required by the Director. Installation, certification, and maintenance records shall be maintained and made available for inspection and copying as described in Section 16.09.155 of this Chapter. Oil-water separators shall have a minimum capacity of 100 gallons; (9) Mercury switches shall not be installed in sewer or storm drain sumps; 16.09.170 Requirements for Newly Constructed, Remodeled, Improved, or Converted Multiple-Family Use Residential Properties. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 60  Packet Pg. 187 of 445  *NOT YET APPROVED* 41 0290170_20250418_ms29 (a) The following requirements apply, where applicable or necessary to effectuate the objectives of this Chapter, to newly constructed, remodeled, improved, or converted multiple- family use residential properties that require a planning entitlement or building permit from the City to the extent that the portion of the property to be constructed, remodeled, or converted is related to the subject of the requirement: (1) Sinks as well as interior and exterior drains are subject to the requirements of and shall be in compliance with Section 16.09.160 of this Chapter; (2) Copper, copper alloys, lead, and lead alloys, including brass, shall not be used in sewer lines, connectors, or seals coming in contact with sanitary sewage except for domestic waste sink traps and short lengths of associated connecting pipes where alternate materials are not practical; (3) Sacrificial zinc anodes are not permitted to be in contact with the water supply in a water distribution system; (4) Discharge drains for pools, spas, and fountains shall not be connected directly to the storm drain system or to the sanitary sewer system. When draining is necessary the discharge to the sanitary sewer system will be allowed pursuant to permitting requirements under Section 16.09.180. (5) If installed, parking garage floor drains on interior levels shall be connected to an oil-water separator prior to discharging into the sanitary sewer system. The oil-water separator shall be cleaned at a frequency of at least once every twelve (12) months or more frequently if recommended by the manufacturer or required by the Director. Installation, certification, and maintenance records shall be maintained and made available for inspection and copying as described in Section 16.09.155 of this Chapter. Oil-water separators shall have a minimum capacity of 100 gallons; (6) Newly constructed, remodeled or converted multiple-family use residential properties and residential development projects with 25 or more units shall provide a covered area for occupants to wash their vehicles. A drain shall be installed to capture all vehicle washwaters and shall be connected to an oil-water separator prior to discharge to the sanitary sewer system. The oil-water separator shall be cleaned at a frequency of at least once every twelve (12) months or more frequently if recommended by the manufacturer or required by the Director. Oil-water separators shall have a minimum capacity of 100 gallons. The area shall be graded or bermed in such a manner as to prevent the discharge of stormwater to the sanitary sewer system. This requirement can be exempted if no washing is allowed on-site via rental/lease agreement, any hose bibs are to be fitted with lock-outs or other connection controls, and signage is posted indicating that car washing is not allowed; Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 61  Packet Pg. 188 of 445  *NOT YET APPROVED* 42 0290170_20250418_ms29 (7) Mercury switches shall not be installed in sewer or storm drain sumps; 16.09.175 Requirements for Cooling Systems, Pools, Spas, Fountains, Boilers, and Heat Exchangers. (a) Once-through cooling water from systems using potable water as a coolant shall not be discharged to the sanitary sewer system except in the following instances: (1) Emergency; (2) For once-through cooling water used for bench top reflux or distillation or other similarly sized activity; or (3) For short term use only, upon the determination that the use is for a research activity for which another source of cooling is not readily available. (b) No person shall add to cooling systems, pools, spas, fountains, boilers, or heat exchangers, any substance that contains any of the following: (1) Chromium in excess of 2.0 mg/L; (2) Copper in excess of 2.0 mg/L; (3) Zinc in excess of 2.0 mg/L; (4) Tributyltin in excess of 0.1 mg/L or (5) Molybdenum in excess of 2.0 mg/L. The above limits shall apply to any of the above-listed substances pri to dilution in the cooling system, pool, spa, fountain, boiler, or heat exchanger. (c) Cooling towers shall be equipped with flow monitoring equipment for the measurement of makeup water and blowdown. (d) Devices using electricity to dissolve copper or silver into water distribution systems, cooling systems, pools, spas, or fountains must be authorized by the Director in writing. 16.09.180 Requirements for Exceptional Waste. (a) A discharger may submit a discharge permit application form established by the Director to request to discharge prohibited wastes not in conformance with this Chapter or wastes containing concentrations of substances or characteristics in excess of those permitted Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 62  Packet Pg. 189 of 445  *NOT YET APPROVED* 43 0290170_20250418_ms29 by this Chapter. Discharge originating within the City of Palo Alto of such wastes shall not be allowed without first obtaining a discharge permit from the Director. (b) Exceptional wastes, as used in this Section, are aqueous wastes that may include, but are not limited to: (1) Construction site dewatering wastewater where soil or groundwater contamination is or may be present; (2) Groundwater contaminated with organic solvents generated as a result of pump tests in preparation for a groundwater cleanup and wastewater generated during sampling activities; (3) Aqueous wastes generated by either permanent or mobile hazardous waste treatment units used to treat hazardous wastes at the generator’s site; (4) Aqueous wastes generated as a result of site cleanup activities; (5) Pool drainage greater than 20,000 gallons. Pools that are 20,000 gallons or less may be drained with a hose or other temporary system or a fixed pipe with an air gap an receiving sink to a discharger’s sanitary sewer cleanout pursuant to Section 16.09.170 without an Exceptional Waste Discharge Permit if done so during dry weather and at a rate of 30 gpm or less; or (6) Fire sprinkler system flush, test, or drain water discharged at a rate greater than 30 gpm. Fire sprinkler system flush, test, or drain water discharged at a rate less than 30 gpm may be drained to a discharger’s sanitary sewer cleanout without an Exceptional Waste Discharge permit. (c) The maximum allowable limit for copper for exceptional wastes to the sanitary sewer system shall be 2.0 mg/L. 16.09.185 Root and Pest Control Chemical Use. (a) No person shall discharge, dispose of or add to the sanitary sewer system any substance intended to control roots or pests without first obtaining a discharge permit from the Director. Applicants for a discharge permit shall submit a completed discharge permit application form established by the Director. (b) The Director may impose terms and conditions in the discharge permit which the Director deems reasonable or necessary to carry out the purpose of this Chapter. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 63  Packet Pg. 190 of 445  *NOT YET APPROVED* 44 0290170_20250418_ms29 (c) No person shall discharge, dispose of, or add to the sanitary sewer system any substance containing greater than five percent copper by weight, or copper sulfate in any amount, to control roots. (d) The provisions of this Section shall not apply to discharges from residential properties. 16.09.190 Requirements for Dental Facilities. (a) Except as provided in Subsection (b) below, no person shall discharge, cause, allow, or permit any discharge to the sanitary sewer system from a dental vacuum system, unless such discharge has first been processed through an amalgam separator as defined by Section 16.09.015 of this Chapter. (b) A dental vacuum system may be operated without an amalgam separator provided that the system is not used in connection with the removal or placement of fillings that contain dental amalgam except in limited emergency or unplanned, unanticipated circumstances, and the system is used exclusively by the following types of dental practices: (1) Oral Pathology; (2) Oral and Maxillofacial Radiology; (3) Oral and Maxillofacial Surgery; (4) Orthodontics; (5) Periodontics; or (6) Prosthodontics. (c) Dental dischargers shall submit reports for each facility in accordance with guidelines established by the Director. (d) Dental dischargers that remove or place dental amalgam shall comply with the following BMPs: (1) Amalgam separators shall be maintained in accordance with manufacturer recommendations. Installation, certification, and maintenance records shall be maintained and made available for inspection and copying as described in Section 16.09.155 of this Chapter; Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 64  Packet Pg. 191 of 445  *NOT YET APPROVED* 45 0290170_20250418_ms29 (2) Amalgam separator(s) shall be inspected in accordance with the manufacturer’s operating manual to ensure proper operation and maintenance of the separator(s) and to confirm that all amalgam process wastewater is flowing through the amalgam retaining portion of the amalgam separator(s). In the event that an amalgam separator is not functioning properly, the amalgam separator must be repaired consistent with manufacturer instructions or replaced with a compliant unit within ten (10) business days after the malfunction is discovered by the dental discharger; (3) Amalgam retaining units shall be replaced in accordance with the manufacturer’s schedule as specified in the manufacturer’s operating manual or when the amalgam retaining unit has reached the maximum level, as specified by the manufacturer in the operating manual, at which the amalgam separator can perform to the specified efficiency, whichever comes sooner; (4) Dental office personnel who handle amalgam and amalgam waste shall be trained in the proper handling, management, and disposal of mercury-containing materials. Training records shall be maintained and made available for inspection and copying in accordance with Section 16.09.155 of this Chapter; (5) Amalgam waste including, but not limited to dental amalgam from chair- side traps, screens, vacuum pump filters, dental tools, cuspidors, or collection devices shall not be discharged to the sanitary sewer system. Amalgam waste shall be stored, managed and disposed in accordance with applicable Federal, State, and local regulations including the following; (A) Store and dispose of used chair-side traps, vacuum pump filters, screens, and their contents with amalgam waste. (B) Store amalgam waste in airtight, structurally sound, and appropriately labeled containers. (6) Oxidizing or acidic cleaners, including but not limited to bleach, chlorine, iodine, and peroxide, that have a pH lower than 6 or greater than 8 shall not be used to disinfect dental unit water lines, chair-side traps, and vacuum lines that discharge amalgam process wastewater to the sanitary sewer system; and (7) The use of bulk mercury is prohibited. Only pre-capsulated dental amalgam is permitted. (e) Records required to be kept pursuant to this Section shall be maintained and made available for inspection and copying as described in Section 16.09.155 of this Chapter. 16.09.195 Publication of Users in Significant Noncompliance. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 65  Packet Pg. 192 of 445  *NOT YET APPROVED* 46 0290170_20250418_ms29 The Director shall publish at least annually, in a newspaper of general circulation that provides meaningful public notice within the jurisdictions served by the POTW, a list of the industrial users which, at any time during the previous twelve (12) months, were in significant noncompliance with applicable pretreatment standards and requirements. For the purposes of this Section, a significant industrial user (or any industrial user that violates subsections (c), (d), or (h) of this Section) is in significant noncompliance if its violation meets one or more of the following criteria: (a) Chronic violations of wastewater discharge limits, defined here as those in which sixty-six percent (66%) or more of all of the measurements taken for the same pollutant parameter during a six- (6-) month period exceed (by any magnitude) a numeric pretreatment standard or requirement, including instantaneous limits, as defined by 40 CFR 403.3(l); (b) Technical review criteria (TRC) violations, defined here as those in which thirty- three percent (33%) or more of all of the measurements taken for the same pollutant parameter during a 6-month period equal or exceed the product of the numeric pretreatment standard or requirement including instantaneous limits, as defined by 40 CFR 403.3(l) multiplied by the applicable TRC (TRC=1.4 for BOD, TSS, fats, oil, and grease, and 1.2 for all other pollutants except pH); (c) Any other violation of a pretreatment standard or requirement as defined by 40 CFR 403.3(l) (daily maximum, long-term average, instantaneous limit, or narrative standard) that the Director determines has caused, alone or in combination with other discharges, interference or pass through (including endangering the health of City personnel or the general public); (d) Any discharge of a pollutant that has caused imminent endangerment to human health, welfare, or to the environment or has resulted in the POTW’s exercise of its emergency authority under 40 CFR 403.8(f)(1)(vi)(B) to halt or prevent such a discharge; (e) Failure to meet, within ninety (90) days after the scheduled date, a compliance schedule milestone contained in an individual wastewater discharge permit or a general discharge permit or enforcement order for starting construction, completing construction, or attaining final compliance; (f) Failure to provide, within forty-five (45) days after the due date, required reports such as baseline monitoring reports, ninety- (90-) day compliance reports, periodic self- monitoring reports (PRCC), and reports on compliance with compliance schedules; (g) Failure to accurately report noncompliance; or (h) Any other violations or group of violations, which may include a violation of BMPs, which the Director determines will adversely affect the operation or implementation of the pretreatment program. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 66  Packet Pg. 193 of 445  *NOT YET APPROVED* 47 0290170_20250418_ms29 16.09.200 Enforcement and Penalties. (a) Warning. When the Director finds that a discharger has violated, or continues to violate, any provision of this Chapter, an individual wastewater discharge permit, a general discharge permit, or order issued hereunder, or any other pretreatment standard or requirement, the Director may issue verbal or written warnings in response to minor violations of this Chapter. Compliance with warnings does not limit further enforcement action by the City. Warnings shall not be a prerequisite to any other enforcement action, including permit suspension or revocation as described in subsection c below. (b) Notice of violation. When the Director finds that a discharger has violated, or continues to violate, any provision of this Chapter, an individual wastewater discharge permit, a general discharge permit, or order issued hereunder, or any other pretreatment standard or requirement, the Director may serve upon that discharger a written notice of violation (NOV). The NOV may include a deadline to correct such violation(s), or to respond with an explanation of the violation(s) and a plan for the satisfactory correction and prevention thereof. Submission of such a plan in no way relieves the discharger of liability for any violations occurring before or after receipt of the NOV. Nothing in this Section shall limit the authority of the Director to take any action, including emergency actions or any other enforcement action, without first issuing a notice of violation. (c) Permit revocation or suspension. Subject to the procedural requirements of Section 16.09.205 of this Chapter, the Director may revoke or suspend an individual wastewater discharge permit or coverage under a general discharge permit for good cause, including, but not limited to, the following reasons: (1) Failure to notify the Director of significant changes to the wastewater prior to the changed discharge; (2) Failure to provide prior notification to the Director of changed conditions pursuant to Section 16.09.130 of this Chapter; (3) Misrepresentation or failure to fully disclose all relevant facts in the discharge permit application; (4) Falsifying self-monitoring reports and certification statements; (5) Tampering with monitoring equipment; (6) Refusing to allow the Director timely access to the facility premises and records; Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 67  Packet Pg. 194 of 445  *NOT YET APPROVED* 48 0290170_20250418_ms29 (7) Failure to meet effluent limitations; (8) Failure to pay fees, fines, sewer charges, or penalties; (10) Failure to meet compliance schedules; (11) Failure to complete a discharge permit application; (12) Failure to provide advance notice of the transfer of business ownership of a permitted facility; or (13) Violation of any pretreatment standard or requirement, term of the individual wastewater discharge permit, general discharge permit, or provision of this Chapter. (d) Required installation of capture system. The Director may order that a discharger install, at the expense of the discharger, a temporary system for the capture, treatment, testing, and release (or off-haul) of wastewater, subject to the following: (1) This requirement will apply to facilities that have produced multiple violations for the same parameter at the same sampling point or repeat violation of permit provisions, when the Director determines that appropriate corrective measures have proved difficult to identify or implement; (2) This requirement will apply only to those specific areas of a facility from which the Director determines that the discharge or noncompliance may be originating, rather than to the entire flow from the facility, unless there is no reasonable way to determine where the discharge may be originating or to segregate said flows; (3) If the Director determines that a capture system is impractical, the Director may require an alternative compliance measure of equivalent effectiveness; and (4) This requirement will be terminated following a demonstration of compliance as determined by the Director. The sampling required to demonstrate compliance for violations of pollutant limits shall be set by the Director and may be up to twenty-one (21) consecutive business days of violation-free self-monitoring by the discharger followed by up to ten (10) days of violation-free sampling by the Director. (e) Cease and desist orders. When the Director finds that a discharger has violated, or continues to violate, any provision of this Chapter, an individual wastewater discharge permit, a general discharge permit or order issued hereunder, or any other pretreatment standard or requirement, or that the discharger’s past violations are likely to recur, the Director may issue an Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 68  Packet Pg. 195 of 445  *NOT YET APPROVED* 49 0290170_20250418_ms29 order to the discharger directing it to cease and desist all such violations and directing the discharger to: (1) Immediately comply with all pretreatment requirements and pretreatment standards contained in this Chapter; and (2) Take such appropriate remedial or preventative action as may be needed to properly address a continuing or threatened violation, including halting operations and/or terminating the discharge. Issuance of a cease and desist order shall not be a bar against, or a prerequisite for, taking any other action against the discharger. (f) Administrative compliance order. When the Director finds that a discharger has violated, or continues to violate, any provision of this Chapter, an individual wastewater discharge permit, a general discharge permit, or order issued hereunder, or any other pretreatment standard or requirement, the Director may issue a compliance order to the discharger in accordance with Chapter 1.16 of this code. If the discharger does not come into compliance within the time provided, sewer service may be discontinued unless adequate treatment facilities, devices, or other related appurtenances are installed and properly operated, in addition to any other relief allowed by Chapter 1.16 or any other law. Compliance orders also may contain other requirements to address the noncompliance, including additional self- monitoring and management practices designed to minimize the amount of pollutants discharged to the sewer. A compliance order may not extend the deadline for compliance established for a pretreatment standard or requirement, nor does a compliance order relieve the discharger of liability for any violation, including any continuing violation. Issuance of a compliance order shall not be a bar against, or a prerequisite for, taking any other action against the discharger. (g) Administrative citation. When the Director finds that a discharger has violated, or continues to violate, any provision of this Chapter, an individual wastewater discharge permit, a general discharge permit, or order issued hereunder, or any other pretreatment standard or requirement, the Director may issue an administrative citation in accordance with Chapter 1.12 of this code. Issuance of an administrative citation shall not be a bar against, or a prerequisite for, taking any other action against the person. (h) Emergency suspension. The Director may immediately order a discharger to suspend any discharge, after informal notice, whenever such suspension is necessary to stop an actual or threatened discharge, which reasonably appears to present, or cause an imminent or substantial endangerment to the health or welfare of persons. The Director may also immediately order a discharger to suspend any discharge, after notice and opportunity to respond, that threatens to interfere with the operation of the POTW, or which presents, or may present, an endangerment to the environment. Any discharger notified of a suspension shall immediately stop or eliminate its discharge. In the event of a discharger’s failure to immediately comply Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 69  Packet Pg. 196 of 445  *NOT YET APPROVED* 50 0290170_20250418_ms29 voluntarily with the suspension order, the Director may take such steps as deemed necessary, including immediate severance of the sewer connection, to prevent or minimize damage to the POTW, its receiving stream, or endangerment to any persons. Such suspension shall be effective immediately, but shall be reviewable pursuant to the hearing process provided in Section 16.09.205 of this Chapter. The Director may allow the discharger to recommence its discharge when the discharger has demonstrated to the satisfaction of the Director that the period of endangerment has passed, unless the emergency termination or permit revocation proceedings in Section 16.09.200 of this Chapter are initiated against the discharger. (i) Emergency termination of discharge. The City reserves the right to revoke any permit issued pursuant to this Chapter and/or terminate or cause to be terminated sewer service to any premises for noncompliance with the provisions of this Chapter, an individual wastewater discharge permit, a general discharge permit, which reasonably appear to present an imminent endangerment to the health, safety, and welfare of persons. The discharger shall immediately cease any noncompliant discharge, upon verbal and/or written notice of the Director. Such termination shall be effective immediately, but shall be reviewable pursuant to the hearing process provided in Section 16.09.205 of this Chapter. (j) Injunctive relief. When the Director finds that a discharger has violated, or continues to violate, any provision of this Chapter, an individual wastewater discharge permit, a general discharge permit, or order issued hereunder, or any other pretreatment standard or requirement, the Director may petition the Superior Court of California through the City Attorney for the issuance of a temporary or permanent injunction, as appropriate, which restrains or compels the specific performance of the individual wastewater discharge permit, the general discharge permit, order, or other requirement imposed by this Chapter on activities of the discharger. The Director may also seek such other action as is appropriate for legal and/or equitable relief, including a requirement for the discharger to conduct environmental remediation. A petition for injunctive relief shall not be a bar against, or a prerequisite for, taking any other action against a discharger. (k) Civil penalties. (1) Any person who has violated, or continues to violate any provision of this Chapter, an individual wastewater discharge permit, a general discharge permit, or order issued hereunder, or any other pretreatment standard or requirement shall be liable to the City for a maximum civil penalty of up to twenty-five thousand dollars ($25,000) per day for each day in which such violation occurs. In the case of a monthly or other long-term average discharge limit, penalties shall accrue for each day during the period of the violation. (2) The City may petition the Superior Court of California pursuant to Government Code Section 54740 to recover the sums in subsection (k)(1) of this Section as well as reasonable attorneys’ fees, court costs, and other expenses associated with enforcement Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 70  Packet Pg. 197 of 445  *NOT YET APPROVED* 51 0290170_20250418_ms29 activities, including sampling and monitoring expenses, and the cost of any actual damages incurred by the City. (3) Filing a suit for civil penalties shall not be a bar against, or a prerequisite for, taking any other action against a discharger. (l) Criminal penalties. As provided in Chapter 1.08 of this code, violations of the provisions of this Chapter shall be subject to criminal penalties. The following employee positions are authorized to exercise the authority provided in California Penal Code section 836.5 for violations of this Chapter: manager watershed protection, senior engineer, manager environmental control program, associate engineer, senior industrial waste investigator, industrial waste investigator, industrial waste inspector. (m) Remedies nonexclusive. The remedies provided for in this Chapter are cumulative and not exclusive, and shall be in addition to the provisions of Chapters 1.08, 1.12, and 1.16 of this code, and all other remedies available to the City under Federal, State, or local law. The Director may take any, all, or any combination of these actions against a noncompliant discharger. Enforcement actions may be taken concurrently. 16.09.205 Permit Denial, Modification, Suspension, or Revocation Hearing. (a) An applicant or permit holder shall have at its request, a hearing before the city manager, or their designee, before the applicant’s discharge permit application is denied, or before modification, subjugation to additional terms and conditions, reissuance, suspension, or revocation of a discharger’s discharge permit. (b) The Director, or their designee, shall give the applicant or permit holder ten (10) calendar days written notice of intent to deny the applicant’s discharge permit application or to modify, make subject to additional terms, suspend, or revoke a discharge permit. Permit modifications that are requested by the discharger, that solely entail a permit term extension, or result from facility final closure are not subject to this notification requirement. The notice shall set forth specifically the grounds for the Director’s intention to deny the applicant’s discharge permit application, or to modify, make subject to additional terms, suspend, or revoke a discharge permit and shall inform the applicant or permit holder that they have ten (10) calendar days from the date of receipt of the notice to file a written request for a hearing. The application shall be denied or the permit shall be revoked, modified, or suspended if a hearing request is not received within the ten day period. (c) If the applicant or permit holder file(s) a timely hearing request, the city manager, or their designee, shall within ten (10) calendar days from the receipt of the request, set a time and place for the hearing. All parties involved shall have the right to offer testimonial, documentary, and tangible evidence bearing on the issues and to be represented by counsel. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 71  Packet Pg. 198 of 445  *NOT YET APPROVED* 52 0290170_20250418_ms29 The decision of the city manager, or designee, whether to deny the discharge permit application or to modify, make subject to additional terms, suspend, or revoke the discharge permit shall be final. (d) Nothing in this Section shall limit the authority of the Director to take any emergency enforcement actions as specified in Section 16.09.200 of this Chapter. 16.09.210 Affirmative Defenses to Discharge Violations: Upset. (a) For the purposes of this Section “upset” means an exceptional incident in which there is unintentional and temporary noncompliance with categorical pretreatment standards because of factors beyond the reasonable control of the industrial user. An upset does not include noncompliance to the extent caused by operational error, improperly designed treatment facilities, inadequate treatment facilities, lack of preventive maintenance, or careless or improper operation. (b) An upset shall constitute an affirmative defense to an action brought for noncompliance with categorical pretreatment standards if the requirements of subsection (c), below, are met. (c) An industrial user who wishes to establish the affirmative defense of upset shall demonstrate, through properly signed, contemporaneous operating logs, or other relevant evidence that: (1) An upset occurred and the industrial user can identify the cause(s) of the upset; (2) The facility was at the time being operated in a prudent and workman-like manner and in compliance with applicable operation and maintenance procedures and discharge permit conditions; and (3) The industrial user has submitted the following information to the Director within twenty-four (24) hours of becoming aware of the upset (if this information is provided orally, a written submission must be provided within five (5) calendar days): (A) A description of the indirect discharge and cause of noncompliance; (B) The period of noncompliance, including exact dates and times or, if not corrected, the anticipated time the noncompliance is expected to continue; and Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 72  Packet Pg. 199 of 445  *NOT YET APPROVED* 53 0290170_20250418_ms29 (C) Steps being taken and/or planned to reduce, eliminate, and prevent recurrence of the noncompliance. (d) In any enforcement proceeding, the industrial user seeking to establish the occurrence of an upset shall have the burden of proof. (e) Industrial users shall have the opportunity for a judicial determination on any claim of upset only in an enforcement action brought for noncompliance with categorical pretreatment standards. (f) Industrial users shall control production of all discharges to the extent necessary to maintain compliance with categorical pretreatment standards upon reduction, loss, or failure of its treatment facility until the facility is restored or an alternative method of treatment is provided. This requirement applies in the situation where, among other things, the primary source of power of the treatment facility is reduced, lost, or fails. 16.09.215 Affirmative Defenses to Discharge Violations: Prohibited Discharge Standards. (a) An industrial user shall have an affirmative defense in any action brought against it for noncompliance with the general prohibitions established in Section 16.09.040 of this Chapter and the specific prohibitions established in subsections (b)(3) through (b)(7) and (b)(9) through (b)(17) of Section 16.09.040 of this Chapter if it can prove that it did not know, or have reason to know, that its discharge, alone or in conjunction with discharges from other sources, would cause pass through or interference and that either: (1) A local limit exists for each pollutant discharged and the industrial user was in compliance with each limit directly prior to, and during, the pass through or interference; or (2) No local limit exists, but the discharge did not change substantially in nature or constituents from the industrial user’s prior discharge when the City was regularly in compliance with its NPDES permit, and in the case of interference, was in compliance with applicable sludge use or disposal requirements. 16.09.220 Affirmative Defenses to Discharge Violations: Bypass. (a) For the purposes of this Section the following terms and phrases shall be as defined herein: (1) “Bypass” means the intentional diversion of wastestreams from any portion of an industrial user’s treatment facility; and Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 73  Packet Pg. 200 of 445  *NOT YET APPROVED* 54 0290170_20250418_ms29 (2) “Severe property damage” means substantial physical damage to property, damage to the treatment facilities which causes them to become inoperable, or substantial and permanent loss of natural resources which can reasonably be expected to occur in the absence of a bypass. Severe property damage does not mean economic loss caused by delays in production. (b) An industrial user may allow any bypass to occur which does not cause pretreatment standards or requirements to be violated, but only if the bypass is for essential maintenance to assure efficient operation or there are no feasible alternatives to the bypass. These bypasses are not subject to the provision of subsections (d) through (f) of this Section. (c) If an industrial user knows in advance of the need for bypass, it shall submit prior notice to the Director at least ten (10) calendar days before the date of the bypass, or if the need for bypass becomes known less than ten (10) calendar days in advance, as soon as possible prior to the bypass. (d) An industrial user shall submit oral notice to the Director of an unanticipated bypass that exceeds applicable pretreatment standards within twenty-four (24) hours from the time it becomes aware of the bypass per Section 16.09.135 of this Chapter. A written submission shall also be provided to the Director within five (5) calendar days of the time the industrial user becomes aware of the bypass. The written submission shall contain a description of the bypass and its cause; the duration of the bypass, including exact dates and times, and, if the bypass has not been corrected, the anticipated time it is expected to continue; and steps taken or planned to reduce, eliminate, and prevent reoccurrence of the bypass. The Director may waive the written report on a case-by-case basis if the oral report has been received within twenty-four (24) hours. (e) Bypass is prohibited, and the Director may take enforcement action against an industrial user for a bypass, unless; (1) Bypass was unavoidable to prevent loss of life, personal injury, or severe property damage; (2) There were no feasible alternatives to the bypass, such as the use of auxiliary treatment facilities, retention of untreated wastes, or maintenance during normal periods of equipment downtime. This condition is not satisfied if adequate back-up equipment should have been installed in the exercise of reasonable engineering judgment to prevent a bypass which occurred during normal periods of equipment downtime or preventative maintenance; and (3) The industrial user submitted notices as required under subsections (c) or (d) of this Section. Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 74  Packet Pg. 201 of 445  *NOT YET APPROVED* 55 0290170_20250418_ms29 (f) The Director may approve an anticipated bypass, after considering its adverse effects, if the Director determines that it will meet the three conditions listed in subsection (e) of this Section. 16.09.225 Pretreatment Charges and Fees. The City may adopt reasonable fees for reimbursement of costs of setting up and operating the City’s pretreatment program, which may include: (a) Fees for discharge permit applications including the cost of processing such applications; (b) Fees for monitoring, inspection, and surveillance procedures including the cost of collection and analyzing a discharger’s discharge, and reviewing monitoring reports and certification statements submitted by dischargers; (c) Fees for filing appeals; (d) Fees to recover administrative and legal costs (not included in subsection (b) of this Section) associated with the enforcement activity taken by the Director to address discharger noncompliance; and (e) Other fees as the City may deem necessary to carry out the requirements of this Chapter. 16.09.230 Obstruction, Damage or Impairment to POTW. Dischargers shall be responsible for and liable to the City for any discharge that causes an obstruction, damage, or any other impairment to the POTW. When a discharge causes an obstruction, damage, or any other impairment to the POTW, the City may assess a charge against the discharger to reimburse the City for costs incurred to clean or repair said obstruction, damage, or impairment. SECTION 3. This amended ordinance shall apply to all permits currently in effect and all dischargers, whether permitted or not. SECTION 4. If any Section, Subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or Sections of the Ordinance. The Council hereby declares that it would have adopted the Ordinance and each Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 75  Packet Pg. 202 of 445  *NOT YET APPROVED* 56 0290170_20250418_ms29 Section, Subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more Sections, Subsections, sentences, clauses or phrases be declared invalid. SECTION 5. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15308 of the CEQA Guidelines, because it is an action taken by the City as a regulatory agency to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment. SECTION 6. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ City Attorney or Designee City Manager ____________________________ Director of Public Works Item 8 Attachment B - Ordinance Amending PAMC Chapter 16.09 (Sewer Use Ordinance)        Item 8: Staff Report Pg. 76  Packet Pg. 203 of 445  *NOT YET APPROVED* 1 0290171_20250418_ms29 Ordinance No. _____ Ordinance of the Council of the City of Palo Alto Amending Chapter 16.11 (Stormwater Pollu on Preven on) of Title 16 (Building Standards) of the Palo Alto Municipal Code The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and Declara ons. The City Council finds and declares as follows: A. Urban Stormwater Runoff is considered a significant pathway for Pollutants into local creeks and the San Francisco Bay (Bay). Rain and irriga on from lawns and gardens wash Pollutants off of Impervious Surfaces like streets, sidewalks, roofs, driveways, and parking lots into Storm Drain Systems and creeks and, ul mately, out to the Bay. Water that flows to the Bay from the Storm Drain System and creeks does not receive any treatment and is o en Contaminated by Pollutants that can be toxic to fish, wildlife, and people. B. Protec on of the City of Palo Alto’s Storm Drain System and local Receiving Waters requires strict regula ons for Non-Stormwater Discharges and overall adherence to the Municipal Regional Stormwater Permit (“MRP”) issued by the San Francisco Bay Regional Water Quality Control Board (“Regional Water Board”) (Order R2-2022-0018). C. In order to be er protect public health, local Receiving Waters, and the City’s Storm Drain System from Pollutants, the City now desires to update its Municipal Code to consolidate Stormwater compliance management requirements within the same Chapter 16.11 and facilitate compliance with the current MRP. D. The update of Chapter 16.11 is a component of the City’s Stormwater compliance management program and supports the City’s authority to implement Stormwater and Pollu on preven on requirements mandated by the Regional Water Quality Control Board. E. The City desires to maintain and enhance its leadership in protec ng Stormwater quality by not only mee ng minimum MRP requirements, but also expanding upon those MRP requirements for certain businesses and Development Projects to further protect local creeks and the Bay. SECTION 2. Chapter 16.11 (Stormwater Pollu on Preven on) of Title 16 (Building Regula ons) of the Palo Alto Municipal Code is repealed and replaced in its en rety to read as follows: Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 77  Packet Pg. 204 of 445  *NOT YET APPROVED* 2 0290171_20250418_ms29 Table of Contents Part 1 Purpose and Intent; Defini ons 16.11.010 Purpose and Intent 16.11.020 Defini ons Part 2 General Provisions 16.11.030 Administra on 16.11.040 General Obliga on 16.11.050 Conflicts with Other Laws 16.11.060 Alternate Means and Methods 16.11.070 Prohibited Discharges 16.11.080 Discharge Exemp ons 16.11.090 Condi onally Exempt Discharges 16.11.100 Prohibi on of Illicit Connec ons 16.11.110 Authority to Inspect 16.11.120 Enforcement and Penal es 16.11.130 Fees and Charges 16.11.140 Obstruc on, Damage or Impairment to City Storm Drain System and Rights-of- Way Part 3 Development Projects 16.11.150 Regulated Projects 16.11.160 Source Control Measures for Regulated Projects 16.11.170 Site Design Measures for Regulated Projects 16.11.180 Stormwater Treatment Measures for Regulated Projects 16.11.190 Cer fica on of Compliance for Regulated Projects 16.11.200 Green Infrastructure Design and Construc on Requirements 16.11.210 Required Hydromodifica on Management Measures for Regulated Projects 16.11.220 Opera on and Maintenance of Stormwater Treatment Measures and Hydromodifica on Management Measures Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 78  Packet Pg. 205 of 445  *NOT YET APPROVED* 3 0290171_20250418_ms29 16.11.230 Low Impact Development Source Control and Site Design Measures for Projects Other Than “Regulated Projects” Under Sec on 16.11.150 16.11.240 Requirements for All Development Projects 16.11.250 Requirements for Loading Docks 16.11.260 Drainage Design Standards for Development Projects 16.11.270 Requirements for Construc on Sites and Ac vi es Part 4 Required Best Management Prac ces for All Dischargers 16.11.280 Minimum Best Management Prac ces for All Dischargers Part 5 Illicit Discharge Detec on and Elimina on and Mobile Sources 16.11.290 Spill Containment and No fica on of Non-Stormwater Discharges 16.11.300 Mobile Businesses Part 5 Pes cides Toxicity Control 16.11.310 Pes cides Toxicity Control Part 6 Trash Load Reduc ons 16.11.320 Trash Load Reduc ons Part 7 Mercury Controls 16.11.330 Mercury Controls Part 8 Polychlorinated Biphenyls (PCBs) Controls 16.11.340 Polychlorinated Biphenyls Controls 16.11.350 Management of PCBs During Building Demoli on Ac vi es Part 9 Copper Controls 16.11.360 Copper Controls Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 79  Packet Pg. 206 of 445  *NOT YET APPROVED* 4 0290171_20250418_ms29 Part 1 Purpose and Intent; Defini ons 16.11.010 Purpose and Intent The purpose of this Chapter is to control and limit Stormwater Runoff Pollu on by preven ng Pollutants from entering the City of Palo Alto Storm Drain System and Receiving Waters, including the San Francisco Bay (Bay) and local creeks, marshes, wetlands and other natural habitats, as well as to protect human health and the environment. This Chapter is enacted and shall be implemented in a manner consistent with the Porter-Cologne Water Quality Control Act (Water Code Sec on 13000 et seq.) and the Federal Clean Water Act (33 U.S.C. Sec on 1251 et seq.) (CWA), and the requirements of the Municipal Regional Stormwater Permit (MRP) issued by the California Regional Water Quality Control Board, San Francisco Bay-Region 2 (Regional Water Board), as amended from me to me. This Chapter is intended to be no less stringent than the MRP and in some respects may be more stringent than regional, state or federal regula ons, rules, orders and policies. The City intends to update and modify this Chapter as needed to con nue to meet Regional Water Board requirements and provide a program for protec on of the Bay and other Receiving Waters. If any provision of this Chapter conflicts with the MRP, as amended or updated, the more stringent and environmentally protec ve provision shall apply. 16.11.020 Defini ons The following words and phrases, whenever used in this Chapter, shall be as defined herein. Words and phrases used in this Chapter not otherwise defined in this Sec on shall be as defined, interpreted or used in the MRP in effect or, if not used in the MRP, so as to give this Chapter its most reasonable applica on. (a) “A” defini ons: (1) “Applicant” means any Person that submits an applica on for a Planning and Land Use En tlement or Building Permit from the City of Palo Alto. (b) “B” defini ons: Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 80  Packet Pg. 207 of 445  *NOT YET APPROVED* 5 0290171_20250418_ms29 (1) “Best Management Prac ces” or “BMPs” mean a combina on of general good housekeeping prac ces, Pollu on preven on and educa onal prac ces, opera ons and maintenance procedures, and other prac ces and requirements to prevent or reduce to the Maximum Extent Prac cable Non-Stormwater Discharges directly or indirectly to the Storm Drain System or Receiving Waters. Sources of industry- standard BMPs include but are not limited to the Santa Clara Valley Urban Runoff Pollu on Preven on Program, the California Stormwater Quality Associa on Stormwater Best Management Prac ce Handbook, the California Department of Transporta on Construc on Site Best Management Prac ces Manual, and the MRP. Unless otherwise stated, reference to BMPs generally means non-structural BMPs as described in this defini on. (2) “Building” means any structure used or intended for suppor ng or sheltering any use or occupancy. (3) “Building Permit” means the authoriza on provided by the City to build/construct one or more Buildings. (c) “C” defini ons: (1) “CASQA” means California Stormwater Quality Associa on, a professional member associa on dedicated to the advancement of Stormwater quality management through collabora on, educa on, implementa on guidance, regulatory review, and scien fic assessment. (2) “City” or “The City” means City of Palo Alto, California. (3) “Construc on Ac vity” means any earth- or soil-disturbing ac vity, including, but not limited to, clearing, grading, paving, landscaping, excava on, stockpiling, material storage, and disturbances to land or ground such as building of a structure, and demoli on or removal of structures or paved surfaces. (4) “Construc on Site” means any site where Construc on Ac vity occurs. Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 81  Packet Pg. 208 of 445  *NOT YET APPROVED* 6 0290171_20250418_ms29 (5) “Contamina on” shall have the same meaning as defined in California Water Code Sec on 13050, as amended from me to me. (6) “Con guous” means touching or sharing a border and includes project areas interrupted by cross streets or intersec ons. (d) “D” defini ons: (1) “Detached Single-Family Home Project” means the building of one single new house or the addi on and/or replacement of Impervious Surface to one single exis ng house, which is not part of a larger plan of development. (2) “Development Project” means new construc on or Redevelopment of any public or private project involving Construc on Ac vity and within the planning and building authority of the City. (3) “Director” means the Director of Public Works of the City of Palo Alto and his or her duly authorized designees. (4) “Discharge” when used as a verb, means to allow a Stormwater or Non-Stormwater substance to enter the Storm Drain System or a Receiving Water from any ac vity or opera on. When used as a noun, “Discharge” means the Stormwater or Non- Stormwater Discharge that is released or conveyed. (5) “Discharger” means any Person who causes or permits a Discharge. (e) “E” defini ons: (1) “EPA” or “U.S. EPA” means the Environmental Protec on Agency of the United States of America. (f) “F” defini ons: (1) “Full Trash Capture Device or System” means a treatment control, or series of treatment controls, that traps all par cles that are 5 mm or greater and has a design Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 82  Packet Pg. 209 of 445  *NOT YET APPROVED* 7 0290171_20250418_ms29 treatment capacity that is either: a) of not less than the peak flow rate, Q, resul ng from a one-year, one-hour storm in the subdrainage area, or b) appropriately sized to, and designed to carry at least the same flows as, the corresponding storm drain. The device(s) shall also have a trash reservoir large enough to contain a reasonable amount of trash safely without overflowing trash into the overflow outlet between maintenance events. (g) “G” defini ons: (1) “Green Stormwater Infrastructure” or “GSI” means infrastructure that uses vegeta on, soils, and natural processes to manage Stormwater Runoff. At the scale of a city or county, GSI refers to the patchwork of natural areas that provides habitat and manages smaller storms, cleaner air, and cleaner water and eliminates street ponding. At the scale of a neighborhood or project site, GSI refers to Stormwater management systems that mimic the natural hydrologic cycle by soaking up and storing water. (h) “H” defini ons: (1) “Hazardous Material” means any material designated as hazardous by Title 17 of this Code. (2) “Hazardous Waste” means any material designated as a Hazardous Waste by applicable federal, state or local regula ons. (i) “I” defini ons: (1) “Illicit Connec on” means any device, ar fice, method or connec on that conveys Non-Stormwater to the Storm Drain System. Examples may include connec ons from interior floor drains, HVAC systems, industrial processes, sinks, and toilets. An Illicit Connec on does not include methods of conveyance of groundwater during Construc on Ac vi es in compliance with this Code and as approved by the Director. Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 83  Packet Pg. 210 of 445  *NOT YET APPROVED* 8 0290171_20250418_ms29 (2) “Illicit Discharge” means any Discharge that is prohibited under local, state, or federal statutes, ordinances, codes, or regula ons and this Chapter. Illicit Discharges do not include Discharges that are exempt or condi onally exempt under the MRP, regulated by a NPDES Permit other than the MRP, or authorized by the Execu ve Officer of the Regional Water Board or the Director. (3) “Impervious Surface” means land that has been modified to reduce or remove the land's natural ability to absorb and infiltrate rainfall. Impervious Surfaces include, but are not limited to, roo ops, pavement, sidewalks, walkways, pa os, driveways, and parking lots where such surfaces are not constructed with Pervious materials and/or are not designed to infiltrate Stormwater. (j) “J” defini ons: (1) “Joint Stormwater Treatment Facility” is a Stormwater treatment facility built to treat the combined runoff from two or more Regulated Projects located adjacent to each other. (k) “K” defini ons: Reserved (l) “L” defini ons: (1) “Loading Dock” means a raised or lowered area of a facility designed to accommodate a truck, trailer or other large delivery vehicle for the loading and unloading of equipment or materials. A Loading Dock does not include such an area where the deliveries are limited solely to furniture and non-electronic office supplies. (2) “Low Impact Development” or “LID” is a land planning and engineering design approach with a goal of reducing Stormwater Runoff and mimicking a site’s predevelopment hydrology by minimizing disturbed areas and impervious cover and infiltra ng, storing, detaining, evapotranspiring, and/or biotrea ng Stormwater Runoff close to its source, or onsite. Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 84  Packet Pg. 211 of 445  *NOT YET APPROVED* 9 0290171_20250418_ms29 (m) “M” defini ons: (1) “Mobile Business” means a business whose opera ons may produce or result in the produc on of Pollutants and that does not operate from a permanent structure but instead provides mobile services during par cular me periods or upon request at temporary loca ons. Types of services include cleaning or power washing of vehicles, structures, windows, or parking lots; engine or equipment degreasing; acid cleaning of unpainted trucks or containers; steam cleaning; carpet cleaning; dental and medical care; vehicle repair, servicing, fueling and cleaning; and pet services (including grooming, veterinary care and other miscellaneous services). (2) “Municipal Code” means the ordinances and laws adopted and enforced by the City of Palo Alto. (3) “Municipal Regional Stormwater Permit” or “MRP” means the most recently adopted San Francisco Bay Area Municipal Regional Stormwater Permit, a mul - countywide municipal Stormwater NPDES Permit issued by the California Regional Water Quality Control Board, San Francisco Bay Region-Region 2 (Regional Water Board) to regulate Discharges from municipali es and local agencies in Alameda, Contra Costa, San Mateo, and Santa Clara coun es, and the ci es of Fairfield, Suisun City, and Vallejo. (n) “N” defini ons: (1) “Non-Stormwater Discharge” means any Discharge that is not en rely composed of Stormwater. Non-Stormwater Discharges include, but are not limited to, polluted groundwater, any Pollutant, Discharges allowed under an NPDES Permit, or an Illicit Discharge. (2) “NPDES” means Na onal Pollutant Discharge Elimina on System, which is a na onal program for issuing, modifying, revoking and reissuing, termina ng, monitoring and enforcing Permits, and imposing and enforcing pretreatment requirements, under Sec ons 307, 402, 318, and 405 of the Federal Clean Water Act. (o) “O” defini ons: Reserved Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 85  Packet Pg. 212 of 445  *NOT YET APPROVED* 10 0290171_20250418_ms29 (p) “P” defini ons: (1) “PCB Screening Assessment” means a report prepared by an Applicant for a demoli on Permit containing any informa on and data (inves ga ons, reports, soil samples, laboratory results, Construc on Site controls, etc.) reasonably required by the Director regarding the presence of Polychlorinated Biphenyls (PCBs). (2) “Permit” means any authoriza on issued by the City to carry out an ac on or ac vity according to the City’s Municipal Code, rules, and regula ons. (3) “Person” means any individual, partnership, firm, company, corpora on, associa on, joint venture, joint stock company, trust, estate, governmental en ty, or any other legal en ty; or their representa ves, agents, or designees. (4) “Pervious” means capable of allowing water to infiltrate below the surface. Pervious materials may include, but are not limited to, permeable interlocking concrete pavers, permeable pavers, Pervious concrete and porous asphalt. (5) “Planning and Land Use En tlement” means approval provided by the City to develop a Building (or Buildings) or a piece of land for a specific use according to the City’s development standards, rules, and regula ons. (6) "Pollutants” or “Pollutant” means those substances associated with Stormwater Runoff that may cause or contribute to the degrada on of water quality of Receiving Waters and are harmful to aqua c life, human health and the environment. Pollutants commonly associated with Stormwater Runoff include, but are not limited to, total suspended solids; sediment; pathogens (e.g., bacteria, viruses, protozoa); heavy metals (e.g., copper, lead, zinc, and cadmium); petroleum products and polynuclear aroma c hydrocarbons; synthe c organics (e.g., pes cides, herbicides, and PCBs); nutrients (e.g., nitrogen and phosphorus fer lizers); oxygen-demanding substances (e.g., decaying vegeta on and animal waste); li er and trash. Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 86  Packet Pg. 213 of 445  *NOT YET APPROVED* 11 0290171_20250418_ms29 (7) "Pollu on" means the presence, introduc on or Discharge into a Receiving Water of a Pollutant that has harmful or poisonous effects on aqua c life, ecological habitat, natural processes of creeks and waterbodies, public health and the environment. (q) “Q” defini ons: Reserved (r) “R” defini ons: (1) “Receiving Water” means waters of the State, as defined by the Porter-Cologne Water Quality Control Act. Receiving Waters include but are not limited to creeks, marshes, wetlands, shorelines, estuaries, and bays. (2) “Redevelopment” means any land-disturbing ac vity that results in the crea on, addi on, or replacement of exterior Impervious Surface area on a site on which some past development has occurred. This category includes projects on public or private land that fall under the planning and building authority of the City. (3) "Refuse" means and includes compostable materials, recyclable materials, and solid waste. Solid waste means solid and semisolid wastes, generated in or upon, related to the occupancy of, remaining in or emana ng from residen al premises or commercial premises including but not limited to garbage, trash, rubbish, ashes, and industrial wastes. (4) “Refuse Management and Containment Area” means an area such as a room located inside a Building or an enclosed structure located outdoors to keep, manage and contain compostable, recyclable and solid waste. (5) “Regional Water Board” or “Water Board” means the California Regional Water Quality Control Board, San Francisco Bay-Region 2. (6) “Regulated Project” means a project described in Chapter 16.11.150, “Regulated Projects.” (7) “Remodel” is an extension or modifica on of an exis ng structure. This may include a one or second-story addi on that increases the footprint of the structure or an Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 87  Packet Pg. 214 of 445  *NOT YET APPROVED* 12 0290171_20250418_ms29 interior reconfigura on. (8) “Responsible Party” means any Person who owns, operates, or manages a property, business, facility, or site, or who is otherwise responsible for the ac vi es thereon or the Person whose ac on or omission causes or results in the viola on of this Chapter. (s) “S” defini ons: (1) “Sanitary Sewer System” means the collec on system, all sewers, treatment plants and other facili es owned or operated by the City for carrying, collec ng, storing, trea ng, reclaiming and disposing of sanitary Sewage and industrial wastes (as defined in Sec on 16.09.015 of Title 16 of the Palo Alto Municipal Code). (2) “SCVURPPP” or “Santa Clara Valley Urban Runoff Pollu on Preven on Program” means an associa on of fi een agencies in Santa Clara Valley that share a common NPDES MRP to Discharge to south San Francisco Bay. Member agencies (also referred to as Co-permi ees) include the ci es or towns of Campbell, Cuper no, Los Altos, Los Altos Hills, Los Gatos, Milpitas, Monte Sereno, Mountain View, Palo Alto, San Jose, Santa Clara, Saratoga, and Sunnyvale, Santa Clara County, and the Santa Clara Valley Water District (Valley Water). (3) “Sewage” means the wastewater of the community derived from residen al, agricultural, commercial, or industrial sources, including domes c Sewage, and industrial wastewater, which is required to be conveyed to the Sanitary Sewer System. (4) “Site Design Measure” means a site planning technique to conserve natural spaces and/or limit the amount of Impervious Surface at Development and Redevelopment Projects in order to minimize runoff and the transport of Pollutants in Stormwater Runoff. (5) “Source Control Measure” means any BMP that aims to prevent runoff Pollu on by Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 88  Packet Pg. 215 of 445  *NOT YET APPROVED* 13 0290171_20250418_ms29 reducing the poten al for contact with rainfall runoff at the source of Pollu on. Source control BMPs minimize contact between Pollutants and Stormwater Runoff. (6) “Special Projects” are a type of Regulated Project that meets criteria based on size, land use type, and density per the MRP. These projects are typically located in high density areas and are centered around transit-oriented development. If criteria determined by the MRP are met, projects are en tled to incen ve LID treatment reduc on credits approved by the Water Board. (7) “Storm Drain System” means the storm drain facili es owned, managed, or operated by the City by which Stormwater is collected and/or conveyed to Receiving Waters, including but not limited to streets and roads, gu ers, curbs, inlets, piped storm drains, parking lots, pumping facili es, reten on and deten on basins, natural and human-made or altered drainage channels, reservoirs, and other drainage structures which are within the City’s jurisdic on. The Storm Drain System also includes pipes, underground and surface conveyances, and other components on private property and other property within the City’s limits not owned by the City that connect and/or route Stormwater and Stormwater Runoff to the City’s Storm Drain System. (8) “Stormwater” means any surface flow, runoff, and drainage consis ng en rely of water that originates from precipita on events. (9) “Stormwater Runoff” means flow that is created when precipita on falls on Impervious Surfaces or compacted Pervious surfaces that do not allow water to infiltrate into the ground. (10) “Stormwater Run-on” means flow that runs across Impervious Surfaces or compacted Pervious surfaces from one property to another or from one use on a property to another. (11) “Stormwater Treatment Measure” means any engineered, non-mechanical or constructed system designed to remove Pollutants from Stormwater Runoff by simple gravity se ling of par culate Pollutants, filtra on, infiltra on, biological uptake, media adsorp on or any other physical, biological, or chemical process. Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 89  Packet Pg. 216 of 445  *NOT YET APPROVED* 14 0290171_20250418_ms29 (12) “Structural Retrofit Best Management Prac ces” or “Structural Retrofit BMPs” means a retrofit to a structure, fixed feature, or property to prevent or minimize the poten al of a Non-Stormwater Discharge to the Storm Drain System or Receiving Waters, in associa on with an enforcement ac on due to noncompliance with this Chapter. (t) “T” defini ons: Reserved (u) “U” defini ons: Reserved (v) “V” defini ons: Reserved (w) “W” defini ons: Reserved (x) “X” defini ons: Reserved (y) “Y” defini ons: Reserved (z) “Z” defini ons: Reserved Part 2 General Provisions 16.11.030 Administra on The Director shall be responsible for the administra on and enforcement of the provisions of this Chapter and has the authority to promulgate such orders, regula ons, rules, condi ons of approval, and requirements as are necessary to accomplish the purposes of this Chapter. The primary regulatory document implemen ng this Chapter is Palo Alto Regula ons for Stormwater Pollu on Preven on. 16.11.040 General Obliga on All Dischargers of Non-Stormwater and Persons that engage in ac vi es with the poten al to Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 90  Packet Pg. 217 of 445  *NOT YET APPROVED* 15 0290171_20250418_ms29 cause a Non-Stormwater Discharge to the Storm Drain System and Receiving Waters shall comply with the provisions of this Chapter. Viola ons of regula ons implemen ng this Chapter shall be considered viola ons of this Chapter. 16.11.050 Conflicts with Other Laws In the event of any conflict between this Chapter and any federal or state law, regula on, order, or Permit, the requirement that establishes the higher standard for public health or safety shall govern. Nothing in this Chapter shall preclude enforcement of any other applicable law, regula on, order, or Permit. Nothing in this Chapter shall be interpreted to infringe any vested property right. 16.11.060 Alternate Means and Methods The Director, upon applica on in wri ng by the owner, a lessee, or an authorized representa ve of the Discharger, and on no ce to the Director, is authorized to approve alternate means or methods of compliance with this Chapter, provided that the Director finds that the proposed design, use, or opera on sa sfactorily complies with the intent of this Chapter and that the material, method of work performed, or opera on is, for the purpose intended, at least equivalent to that prescribed in this Chapter in quality and effec veness in mee ng the purposes of this Chapter. As required by the Director, an Applicant must show that compliance with the strict requirements of this Chapter is infeasible, and that the proposed alternate means and methods will meet all applicable regional, state, and federal requirements. The par culars of any such approval made by the Director shall be in wri ng and a signed copy shall be furnished to the Applicant. 16.11.070 Prohibited Discharges General Prohibi on. No Person shall cause, allow, or permit any Non-Stormwater Discharge or the condi ons under which there is a substan al probability for such a Discharge to occur unless such Discharge is exempt under Sec on 16.11.080 or condi onally exempt under Sec on 16.11.090. Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 91  Packet Pg. 218 of 445  *NOT YET APPROVED* 16 0290171_20250418_ms29 16.11.080 Discharge Exemp ons Unless determined by the Director or the Regional Water Board to be sources of Pollutants to Receiving Waters, the following Discharges are exempt from Discharge prohibi ons established by this Chapter and are allowed to flow into the Storm Drain System and Receiving Waters: (a) Flows from riparian habitats or wetlands; (b) Diverted stream flows; (c) Flows from natural springs; (d) Uncontaminated rising groundwater due to natural processes; (e) Uncontaminated and unpolluted groundwater infiltra on; (f) Pumped groundwater from crawl space pumps and founda on and foo ng drains of single- family homes. Discharges larger than 2,500 gallons per day shall be treated as condi onally exempt Discharges and must meet the requirements of the MRP and City regula ons; (g) Pumped groundwater from drinking water aquifers (excluding well development); (h) Discharges permi ed under a NPDES Permit issued to the Discharger and administered by the State of California pursuant to Division 7, Chapter 5.5 of the California Water Code, provided that the Discharger is in compliance with all requirements of the Permit and all other applicable laws and regula ons; and Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 92  Packet Pg. 219 of 445  *NOT YET APPROVED* 17 0290171_20250418_ms29 (i) Any other Discharge exempt from the general prohibi on on Discharges to the Storm Drain System under the MRP or permi ed under another NPDES permit. If any of the above are iden fied by the Director or the Regional Water Board as sources of Pollutants to Receiving Waters, such categories or sources shall be treated as condi onally exempt Discharges in accordance with Sec on 16.11.090. 16.11.090 Condi onally Exempt Discharges The following Discharges are condi onally exempt, subject to control measures and BMPs set forth in the MRP and City regula ons: (a) Pumped groundwater, founda on drains, and water from crawl space pumps and foo ng drains not from single-family homes; (b) Air condi oning condensate shall be reused or directed to landscaped areas. If neither is feasible, Discharging to the Storm Drain System shall be allowed per the Director’s approval; (c) Discharges associated with water and foam generated from emergency response and/or firefigh ng ac vi es. BMPs shall be implemented to the Maximum Extent Prac cable to minimize poten al adverse water quality impacts from water, foam, and other Pollutants Discharged during emergency response and firefigh ng ac vi es. Such implementa on shall not interfere with immediate emergency response opera ons or impact public health and safety. (d) Discharges from individual residen al car washing; (e) Irriga on water, landscape irriga on, and discharges from lawn or garden watering; and Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 93  Packet Pg. 220 of 445  *NOT YET APPROVED* 18 0290171_20250418_ms29 (f) Any Discharge that the Director, the local health officer, the Regional Water Quality Control Board or state or federal agency determines in wri ng is necessary for the protec on of the public health and safety, as allowed under applicable law. 16.11.100 Prohibi on of Illicit Connec ons (a) No Person shall construct, use, maintain, or permit or suffer the construc on, use, maintenance or con nued existence of an Illicit Connec on. (b) Illicit Connec ons shall be immediately removed, permanently plugged, or re-plumbed to a connec on point approved by the Director. (c) The provisions of this Sec on shall apply to, without limita on, Illicit Connec ons established in the past, regardless of whether the connec on was permissible under law or prac ces applicable or prevailing at the me of connec on. 16.11.110 Authority to Inspect (a) The Director shall have the authority to inspect private and public facili es, sites, structures, drainage systems, and Mobile Businesses, whether exis ng or under construc on, whenever necessary to ensure and confirm compliance with this Chapter, applicable City or State regula ons, or the MRP. (b) The Director shall be authorized to enter, without unreasonable delay, and upon reasonable no ce, any premises subject to the requirements of this Chapter to conduct inspec ons and monitoring to assure compliance with this Chapter, applicable City or State regula ons, or the MRP. An inspec on fee shall be charged for each inspec on at the amount listed in the City’s Adopted Municipal Fee Schedule. Records related to compliance with this Chapter, including but not limited to opera ons and maintenance records and agreements, shall be available to City staff for inspec on and copying. Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 94  Packet Pg. 221 of 445  *NOT YET APPROVED* 19 0290171_20250418_ms29 (c) In the event the owner or occupant of the premises refuses entry a er a request to enter and inspect the premises has been made, the City is hereby empowered to seek authoriza on from any court of competent jurisdic on for such entry. 16.11.120 Enforcement and Penal es (a) Viola ons of this Chapter may be enforced as allowed by Title I of the Palo Alto Municipal Code. The Director is authorized to exercise the authority provided in the California Penal Code sec on 836.5. (b) The Director may require any Person deemed to have violated this Chapter to take any of the following ac ons: (1) Ensure that the Discharge be remediated and the affected private and City property and infrastructure, as relevant, be restored within a specified me. The Responsible Party shall also be responsible for cleanup or reimbursement of cleanup costs incurred by the City for cleanup ac vi es associated with any Discharges that violate this Chapter. (2) Implement applicable BMPs; for example, to address Pollutant sources associated with outdoor process and manufacturing areas; outdoor material storage areas; outdoor waste storage and disposal areas; outdoor vehicle and equipment storage and maintenance areas; outdoor parking areas and access roads; outdoor areas used by customers and employees; outdoor wash areas; outdoor drainage from indoor areas; roo op equipment; Contaminated and erodible surface areas; and other sources that have a reasonable poten al to contribute to Pollu on of Stormwater Runoff. (3) Install Structural Retrofit BMPs to address noncompliance of this Chapter. Structural Retrofit BMPs may require review and approval by the City’s Planning and Building Divisions. Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 95  Packet Pg. 222 of 445  *NOT YET APPROVED* 20 0290171_20250418_ms29 (c) The Director shall implement a Stormwater Enforcement Response Plan to facilitate mely and effec ve compliance with the requirements of this Chapter. The Enforcement Response Plan shall contain, at a minimum, the following: (1) Enforcement procedures; (2) Enforcement tools and scenarios; (3) Procedures for mely correc on of poten al and actual Discharges; and (4) Procedures for referral and coordina on with other agencies. (d) The remedies established in this Sec on are not exclusive. In addi on to any other remedies allowed under the Palo Alto Municipal Code, viola ons may be subject to penal es established by resolu on of the Council or any other enforcement mechanism allowed by law. 16.11.130 Fees and Charges The City may adopt reasonable fees and charges for reimbursement of costs of administering and enforcing this Chapter. 16.11.140 Obstruc on, Damage or Impairment to City Storm Drain System and Rights-of- Way Dischargers shall be responsible for and liable to the City for any obstruc on, damage, or impairment to the Storm Drain System and other rights-of-way associated with a Discharge that causes an obstruc on, damage, or any other impairment to the Storm Drain System. The City Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 96  Packet Pg. 223 of 445  *NOT YET APPROVED* 21 0290171_20250418_ms29 may assess a charge against the Discharger to reimburse the City for costs incurred to clean or repair said obstruc on, damage or impairment. Part 3 Development Projects 16.11.150 Regulated Projects All projects fi ng the category descrip ons below (hereina er called “Regulated Projects”) must implement Low Impact Development Source Control, Site Design, and Stormwater Treatment Measures. The categories of Regulated Projects are: (a) New Development Projects or Redevelopment Projects New Development or Redevelopment projects that create and/or replace 5,000 square feet or more of Impervious Surface (collec vely over the en re project site). This category includes commercial, industrial, residen al housing subdivisions (i.e., Detached Single-Family Home Projects), mul -family a ached subdivisions (i.e., town homes, condominiums, and apartments), mixed-use, new and reconstructed private roads and private trails, and public projects (other than public road and trail projects), including sidewalks and any other por ons of the public right-of-way that are developed or redeveloped as part of the projects. Specific exclusions that apply to this category are listed in Subsec on (e) below. Public Works projects that are addi onally excluded from this category – unless they create and/or replace 5,000 Con guous square feet or more of Impervious Surface – include the following examples: sidewalk gap closures, sidewalk sec on replacement, and Americans with Disabili es Act- compliant curb ramps. Where a Redevelopment project results in an altera on of 50 percent or more of the Impervious Surface of a previously exis ng development that was not subject to this Part, Stormwater Treatment Measures shall be designed and sized to treat Stormwater Runoff from the en re Redevelopment project. Where a Redevelopment project results in an altera on of Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 97  Packet Pg. 224 of 445  *NOT YET APPROVED* 22 0290171_20250418_ms29 less than 50 percent of the Impervious Surface of a previously exis ng development that was not subject to this Part, Stormwater Treatment Measures must be designed and sized to treat Stormwater Runoff from the new and/or replaced Impervious Surface of the project. The calcula ons in this Subsec on shall include por ons of the public right-of-way that are developed or redeveloped as part of the Regulated Project. (b) New or Widening Road Projects Any of the following types of road projects (including both public and private road projects) that create 5,000 square feet or more of newly constructed Con guous Impervious Surface, and that fall under the planning and building authority of the City: (1) Construc on of new streets or roads, including sidewalks and bicycle lanes built as part of the new streets or roads. (2) Widening of exis ng streets or roads with addi onal traffic lanes. Where the addi on of traffic lanes results in an altera on of 50 percent or more of the Impervious Surface of an exis ng street or road within the project that was not subject to this Part, Stormwater Treatment Measures must be designed and sized to treat Stormwater Runoff from the en re street or road that had addi onal traffic lanes added. Where the addi on of traffic lanes results in an altera on of less than 50 percent of the Impervious Surface of an exis ng street or road within the project that was not subject to this Part, Stormwater Treatment Measures shall be designed and sized to treat Stormwater Runoff from only the new traffic lanes. However, if the Stormwater Runoff from the exis ng traffic lanes and the added traffic lanes cannot be separated, any onsite treatment system shall be designed and sized to treat Stormwater Runoff from the en re street or road. If an offsite treatment system is installed or in-lieu fees paid in accordance with MRP Provision C.3.e or Sec on 16.11.180(c), the offsite treatment system or in-lieu fees must address only the Stormwater Runoff from the added traffic lanes. (3) Construc on of Impervious trails that are greater than or equal to 10 feet wide or are creek-side (within 50 feet of the top of bank). Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 98  Packet Pg. 225 of 445  *NOT YET APPROVED* 23 0290171_20250418_ms29 (4) Specific exclusions to this Subsec on include the following: (i) Sidewalks built as part of new streets or roads and built to direct Stormwater Runoff to adjacent vegetated areas; (ii) Bicycle lanes built as part of new streets or roads, but that are not hydraulically connected to the new streets or roads and that direct Stormwater Runoff to adjacent vegetated areas; (iii) Impervious trails that direct Stormwater Runoff to adjacent vegetated areas, or other non-erodible permeable areas, preferably away from creeks or towards the outboard side of levees, where those areas are at least half as large as the contribu ng Impervious Surface area; (iv) Sidewalks, bicycle lanes, or trails constructed as Pervious pavement systems; and (v) Caltrans highway projects and associated facili es. (c) Road Reconstruc on and U lity Trenching Projects Road projects that involve the reconstruc on of exis ng streets or roads, which create and/or replace at least one Con guous acre of Impervious Surface and that are public road projects and/or fall under the planning and building authority of the City, including sidewalks and bicycle lanes that are built or rebuilt as part of the exis ng streets or roads. This Regulated Project category includes u lity trenching projects which are - on average, over the en re length of the project - greater than or equal to eight (8) feet wide. It also includes public pavement maintenance prac ces listed in Subsec on (e)(3) if they are part of a project that otherwise meets the requirements of this sec on. Where the reconstruc on project results in an altera on of greater than or equal to 50 percent of the Impervious Surface of an exis ng street or road within the project that was not subject to this Part, Stormwater Treatment Measures must be designed and sized to treat Stormwater Runoff from the en re street or road that was reconstructed. Where the reconstruc on project results in an altera on of less than 50 percent of the Impervious Surface of an exis ng street or road within the project that was not subject to this Part, Stormwater Treatment Measures shall be designed and sized to treat Stormwater Runoff from only the new and/or replaced Impervious Surface within the project footprint. However, if the Stormwater Runoff from the exis ng Impervious Surface and the added Impervious Surface cannot be separated, any onsite treatment system shall be designed and sized to treat Stormwater Runoff from the en re street Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 99  Packet Pg. 226 of 445  *NOT YET APPROVED* 24 0290171_20250418_ms29 or road. If an offsite treatment system is installed or in-lieu fees paid in accordance with MRP Provision C.3.e or Sec on 16.11.180(c), the offsite treatment system or in-lieu fees must address only the Stormwater Runoff from the added Impervious Surface. (d) Large Detached Single-Family Home Projects Detached Single-Family Home Projects that create and/or replace 10,000 square feet or more of Impervious Surface (collec vely over the en re project site) and are not part of a larger development or Redevelopment plan regulated under “New Development Projects or Redevelopment Projects” – see Subsec on (a) above. This Regulated Project category includes the addi on of an accessory dwelling unit (ADU) on an exis ng parcel with one single-family home that is not part of a subdivision or plan. Where a single-family home project results in an altera on of 50 percent or more of the Impervious Surface of a previously exis ng project that was not subject to this Part, Stormwater Treatment Measures shall be designed and sized to treat Stormwater Runoff from the en re project. Where a single-family home project results in an altera on of less than 50 percent of the Impervious Surface of a previously exis ng project that was not subject to this Part, Stormwater Treatment Measures shall be designed and sized to treat Stormwater Runoff from the new and/or replaced Impervious Surface of the project. The calcula ons in this Subsec on shall include por ons of the public right-of-way that are developed or redeveloped as part of the Regulated Project. (e) Exemp ons: For Redevelopment projects and Road Reconstruc on Projects: (1) The following interior and exterior prac ces are excluded: (i) Interior Remodels; and (ii) Rou ne maintenance or repair such as roof or exterior wall surface replacement. (2) The following pavement maintenance prac ces are excluded: (i) Pothole and square cut patching; (ii) Overlaying exis ng asphalt or concrete pavement with asphalt or concrete without expanding the area of coverage; (iii) Shoulder grading; (iv) Reshaping/regrading drainage systems; (v) Crack sealing; Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 100  Packet Pg. 227 of 445  *NOT YET APPROVED* 25 0290171_20250418_ms29 (vi) Pavement preserva on ac vi es that do not expand the road prism; (vii) Upgrading from a bituminous surface treatment (e.g., chip seal) with an overlay of asphalt or concrete, without expanding the area of coverage; (viii) Applying a bituminous surface treatment to exis ng asphalt or concrete pavement, without expanding the area of coverage; (ix) Vegeta on maintenance; and (x) Layering gravel over an exis ng gravel road, without expanding the area of coverage. (3) The following pavement maintenance prac ces are not excluded. (i) Removing and replacing asphalt or concrete pavement to the top of the base course or lower, or repairing the pavement base (including repair of the pavement base in prepara on for bituminous surface treatment, such as chip seal), as these are considered replaced Impervious Surfaces; (ii) Extending the pavement edge without increasing the size of the road prism, or paving graveled shoulders, as these are considered new Impervious Surfaces; and (iii) Resurfacing by upgrading from dirt to gravel, to a bituminous surface treatment (e.g., chip seal), to asphalt, or to concrete; or upgrading from gravel to a bituminous surface treatment, to asphalt, or to concrete, as these are considered new Impervious Surfaces. (4) For a project consis ng of a combina on of exempted pavement maintenance prac ces and non-exempted pavement maintenance and/or prac ces that fall under any other Regulated Project category, the parts of the project that are not exempt shall be evaluated as a Regulated Project. 16.11.160 Source Control Measures for Regulated Projects All Regulated Projects shall implement Source Control Measures onsite that, at a minimum, comply with City regula ons and the requirements of the MRP. Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 101  Packet Pg. 228 of 445  *NOT YET APPROVED* 26 0290171_20250418_ms29 16.11.170 Site Design Measures for Regulated Projects All Regulated Projects must implement Low Impact Development Site Design Measures that, at a minimum, comply with City regula ons and the requirements of the MRP. 16.11.180 Stormwater Treatment Measures for Regulated Projects All Regulated Projects shall implement Stormwater Treatment Measures onsite that, at a minimum, comply with City regula ons and the requirements of the MRP. Stormwater Treatment Measures shall not be altered without permission from the Director. (a) All Regulated Projects shall design, construct, maintain, and operate Stormwater Treatment Measures for the en re dura on that the project is in use in accordance with the MRP and City regula ons. All Regulated Projects, except Special Projects, shall treat one hundred percent of the amount of Stormwater Runoff iden fied in accordance with MRP Provision C.3.c requirements for the Regulated Project’s drainage area onsite or at a Joint Stormwater Treatment Facility per MRP Provision C.3.c, Chapter 16.11.180, and SCVURPPP and City specifica ons. LID Stormwater treatment measures include harves ng and use, infiltra on, evapotranspira on, and biotreatment. Stormwater treatment systems must be sized using one of the hydraulic sizing design criteria approved in MRP C.3.d.i. Any Regulated Project that does not comply with this requirement must meet the requirements for alterna ve compliance established in accordance with Subsec on (c) below. (b) Special Projects designed in a manner that meets the criteria of the MRP and City regula ons shall be allowed to apply for Incen ve LID Treatment Reduc on Credits per the Water Board’s process outlined in the MRP. (c) If a Development Project cannot install Stormwater Treatment Measures in conformance with the requirements of the MRP and this chapter, the Director may approve alterna ve compliance and allow in-lieu measures and/or fees if made necessary by individual site condi ons and in accordance with the MRP and City regula ons. Projects shall s ll meet all Regulated Project requirements but may be allowed to do so par ally onsite or fully off-site or through payment of in-lieu fees. This approval shall occur prior to issuance of Planning and Land Use En tlement under Title 18 of this Code, or a Building Permit if no En tlement is required, unless the Director allows an excep on. Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 102  Packet Pg. 229 of 445  *NOT YET APPROVED* 27 0290171_20250418_ms29 16.11.190 Cer fica on of Compliance for Regulated Projects (a) Prior to the issuance of a Planning and Land Use En tlement under Title 18 of this Code, or a Building Permit if no En tlement is required, for a Regulated Project, the Applicant or designee of a Regulated Project shall submit a cer fica on by a qualified third-party reviewer acceptable to the Director that the design of the project complies with the requirements of this Chapter, City regula ons, the MRP, and any plan review comments provided by the Director. A er the project is constructed, the Applicant or a designee shall submit a wri en cer fica on by a qualified third-party reviewer acceptable to the Director that a Regulated Project was constructed or installed in accordance with the City-approved plans and drawings and per City regula ons and the MRP. (b) The third-party reviewer shall be an independent civil engineer, licensed architect, or landscape architect registered in the State of California, shall have current training in Stormwater Treatment Measure design and construc on, and meet other requirements set forth by the City regula ons. The third-party reviewer shall not be any consultant or contractor hired to design and/or construct a Stormwater Treatment Measure for the Regulated Project. (c) Cer fica ons and documenta on required by this Sec on shall be in the form prescribed by the Director. (d) Applicant is responsible for ensuring that the Stormwater Treatment Measure is constructed according to the design approved by the Director. 16.11.200 Green Infrastructure Design and Construc on Requirements Regulated Projects shall comply with applicable design and construc on guidelines and standard specifica ons included in the City’s Green Stormwater Infrastructure Plan and related documents, including design guidelines, standard specifica ons, and other requirements as established by the Director. Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 103  Packet Pg. 230 of 445  *NOT YET APPROVED* 28 0290171_20250418_ms29 16.11.210 Required Hydromodifica on Management Measures for Regulated Projects (a) Applicability. All Regulated Projects that result in the crea on and/or replacement of one acre (43,560 square feet) or more of Impervious Surface and result in a net increase in Impervious Surface over the pre-project condi on shall implement Hydromodifica on Management Measures. (b) Exemp on. Projects located in areas designated as exempt from Hydromodifica on Management Measure requirements on the Hydromodifica on Applicability Map contained in the MRP are exempt from this requirement. (c) Hydromodifica on Management Measures shall be designed and implemented in accordance with City regula ons, MRP requirements, and other applicable regula ons and policies. (d) All Hydromodifica on Management Measures are subject to inspec on and approval by the Director. 16.11.220 Opera on and Maintenance of Stormwater Treatment Measures and Hydromodifica on Management Measures All Regulated Projects shall comply with the following: (a) The property owner(s), its administrators, successors, and any other Persons responsible for the management of the property, including any homeowner's associa on, shall take all necessary ac ons to ensure that the Stormwater Treatment and Hydromodifica on Management Measures are properly maintained so that all measures con nue to operate as originally designed and approved for the life of the project. These measures shall not be removed, replaced, or amended without the Director’s approval. (b) Before a Building Permit is issued, a maintenance agreement shall be submi ed to the Director describing all required Stormwater Treatment and Hydromodifica on Management Measures, including all informa on and documenta on required by the Director. This Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 104  Packet Pg. 231 of 445  *NOT YET APPROVED* 29 0290171_20250418_ms29 agreement shall be approved by the Director, signed by the City A orney or designee and property owner(s), and recorded with Santa Clara County. If property changes ownership at any me, the new property owner(s) shall take on responsibility for maintenance of any Stormwater Treatment and Hydromodifica on Management Measures located on that property and shall adhere to the opera ons and maintenance agreement. (c) The opera on and maintenance of the Measures shall at all mes be conducted in accordance with the terms and condi ons of the approved maintenance agreement. (d) Any Stormwater Treatment Measure and/or Hydromodifica on Management Measure constructed through an alterna ve compliance op on (allowed by the Director per 16.11.180(c)) shall also have a maintenance agreement that complies with this sec on. 16.11.230 Low Impact Development Source Control and Site Design Measures for Projects Other Than “Regulated Projects” Under Sec on 16.11.150 Development and Redevelopment Projects that require a Planning and Land Use En tlement or Building Permit from the City but are not Regulated Projects shall implement LID Source Control and Site Design Measures as required by City Regula ons and the MRP. The design and implementa on of the measures shall be in accordance with the guidelines and technical specifica ons established by the Director, City regula ons, and the MRP. LID features shall not be altered without permission from the Director. 16.11.240 Requirements for All Development Projects (a) Applicability. This Sec on shall apply to any Development Project that requires a Planning and Land Use En tlement review or Building Permit, except for minor projects such as those limited to signs, fences, and parking restriping that have no or minimal poten al to create Non-Stormwater Discharges. (b) Development projects shall meet all applicable requirements of the Palo Alto Regula ons for Stormwater Pollu on Preven on and must be designed to accommodate Best Management Prac ces described in Sec on 16.11.290 and City regula ons, as applicable. Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 105  Packet Pg. 232 of 445  *NOT YET APPROVED* 30 0290171_20250418_ms29 16.11.250 Requirements for Loading Docks (a) Applicability. This Sec on shall apply to any project that includes the construc on of a Loading Dock. (b) The following requirements shall be met for all Loading Docks where applicable: (1) The Loading Dock and surrounding area shall consist of Impervious paving appropriate for the material(s) that will be loaded/unloaded to avoid leaching into or degrada on of paving. (2) The Loading Dock shall be covered and protected from precipita on, Stormwater Runoff and Stormwater Run-on to minimize poten al Non-Stormwater Discharges. (3) The Loading Dock shall be designed to drain to the Sanitary Sewer System. Drains may be required to be equipped with a fail-safe shut-off valve, normally closed, or equivalent device according to the type of materials or substances being transferred. Valve shall be immediately shut off if a spill of any size occurs and shall not be opened un l the spill is complete remediated. 16.11.260 Drainage Design Standards for Development Projects (a) All new Development Projects shall meet the requirements of the Public Works Drainage Design Standards and the Santa Clara County Drainage Manual in effect at the me of submission of a complete planning applica on, or if no planning applica on is required for the Development Project, at the me of submission of a complete applica on for a Building Permit or excava on and grading Permit, whichever occurs first. (b) All Redevelopment projects and Remodels requiring a Building Permit or excava on and grading Permit shall meet the requirements of the Public Works Drainage Design Standards provided by the Public Works Director for the por on of the site or facility being constructed, Remodeled, or improved. (c) Notwithstanding the foregoing provisions of this Sec on, a project shall not be subject to Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 106  Packet Pg. 233 of 445  *NOT YET APPROVED* 31 0290171_20250418_ms29 the requirements of this Sec on if the project does not include new drainage pa erns or alter exis ng drainage pa erns of the site. 16.11.270 Requirements for Construc on Sites and Ac vi es (a) All workers, contractors, subcontractors, and superintendents of Construc on Sites of any size shall follow and implement all applicable provisions of Stormwater management, Pollu on preven on, and erosion and sediment control plans and ensure that BMPs are in place to prevent poten al Pollutants from being tracked, mobilized, carried, transported, or Discharged into the on-site storm drain inlet(s), City’s right-of-way, Storm Drain System, and Receiving Waters, as required by City regula ons. (b) Projects covered under the State of California Construc on General Permit (CGP) shall also meet the requirements of this Sec on. Project Applicants shall provide to the City a copy of the No ce of Intent and No ce of Termina on required under the CGP. (c) Construc on BMPs shall be in place un l exterior Impervious Surfaces, the Building shell, landscaping, and Stormwater Treatment Measures are in place. In addi on to BMPs generally applicable to Construc on Sites year-round, all Construc on Sites shall implement site-specific, seasonally and phase-appropriate BMPs as required by the Director. (d) The Director is authorized to oversee, inspect, and require expedient compliance with the requirements of this Sec on at all Construc on Sites year-round. Inspec ons shall occur at a regular frequency established by the Director. (e) Contractor/Subcontractor Requirements. The Applicant shall be responsible for ensuring that its contractors and subcontractors comply with this Sec on. Part 4 Required Best Management Prac ces for All Dischargers 16.11.280 Minimum Best Management Prac ces for All Dischargers Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 107  Packet Pg. 234 of 445  *NOT YET APPROVED* 32 0290171_20250418_ms29 (a) Any Person engaged in ac vi es or opera ons that will or may result in a Non-Stormwater Discharge, or who owns or manages a facility or property where such ac vi es or opera ons occur, shall implement and consistently comply with applicable BMPs outlined in the City regula ons. (b) The Director may require compliance with addi onal requirements, including Structural Retrofit BMPs, if necessary, to achieve the purposes of this Chapter. Part 5 Illicit Discharge Detec on and Elimina on and Mobile Sources 16.11.290 Spill Containment and No fica on of Non-Stormwater Discharges (a) Any Responsible Party who has knowledge or informa on of any known or suspected release of materials, which has resulted in or may result in a Non-Stormwater Discharge other than that permi ed by this Chapter shall immediately report to the City and take all necessary steps to immediately cease, contain, and clean up the spill using dry clean-up methods. If a Person cannot iden fy the spilled material, the Person shall not a empt to clean it up in a manner that may result in a Discharge or harm to human health. The Responsible Party shall adhere to the City regula ons and any other direc on from the Director or other City representa ve. (b) If a spill occurs on private property, the Responsible Party shall be responsible for cleaning the private property and any private sanitary or storm drain components located on said property. The Responsible Party shall seek guidance from City staff before cleaning the private sanitary or storm drain components. (c) The Responsible Party or representa ve shall not clean any City infrastructure, including any components of the City’s Storm Drain or Sanitary Sewer Systems, without permission from the Director. (d) The Director shall conduct an inves ga on and enforcement per the Enforcement Response Plan un l the issue is deemed corrected. Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 108  Packet Pg. 235 of 445  *NOT YET APPROVED* 33 0290171_20250418_ms29 (e) The Responsible Party and their agents shall adhere to the requirements of Title 17 of this Code with respect to Hazardous Materials and Wastes, and all applicable requirements of the County of Santa Clara and the State of California. 16.11.300 Mobile Businesses (a) Non-Stormwater Discharges from Mobile Businesses. Mobile Businesses whose ac vi es involve the poten al Non-Stormwater Discharge shall not allow wash water or any other Non-Stormwater Discharge to Discharge into a storm drain inlet or other component of the Storm Drain System, onto the street, sidewalk, or other paved surface, or directly into a water body. Instead, all wash water and Pollutants shall be disposed of in a cleanout that is connected to the Sanitary Sewer System according to the requirements of the City of Palo Alto Pretreatment Program. (b) Mobile Businesses shall employ BMPs to prevent Pollutants from Discharging to the Storm Drain System or the Sanitary Sewer Systems without pretreatment, as required by City regula ons or otherwise required by the Director. Part 5 Pes cides Toxicity Control 16.11.310 Pes cides Toxicity Control (a) The Director shall develop, maintain, and implement an Integrated Pest Management Policy and procedures for the use of pes cides. (b) All City employees and contractors shall comply with the Integrated Pest Management Policy and procedures in City opera ons and on City property. Part 6 Trash Load Reduc ons Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 109  Packet Pg. 236 of 445  *NOT YET APPROVED* 34 0290171_20250418_ms29 16.11.320 Trash Load Reduc ons (a) Requirements for Exis ng Businesses. By July 1, 2025, private proper es that generate moderate, high, or very high trash loads, as defined in City regula ons, and that Discharge into private storm drain inlets, shall be equipped with Full Trash Capture Systems or be managed with trash Discharge control ac ons equivalent to or be er than Full Trash Capture Systems. Property owners must install and maintain trash capture systems in compliance with City regula ons and the requirements of the MRP. Property owners shall be responsible for documen ng maintenance records per requirements of the City regula ons. Maintenance records shall be made available to the Director upon request. (b) Requirements for Development Projects. All Development Projects that have operable private storm drain inlets on their property that directly Discharge to the City’s Storm Drain System, any creek, or the San Francisco Bay shall install and maintain Full Trash Capture Devices or systems in compliance with City regula ons and requirements of the State Water Resources Control Board. (c) Full Trash Capture Device or System Maintenance Requirements. Full Trash Capture Devices or Systems shall be maintained by the property owner to ensure that they are opera ng appropriately and have sufficient opera ng capacity to capture trash consistent with the MRP and City regula ons. The inspec on and maintenance of each Full Capture Device shall be at a frequency sufficient to prevent overflow or bypassing of trash and plugging or clogging of screen and device's trash reservoir. Full Trash Capture Devices will be inspected by City staff to ensure compliance. (d) The private property owner shall be responsible for documen ng maintenance records per requirements of the City regula ons. Maintenance records shall be made available to the Director upon request. Part 7 Mercury Controls 16.11.330 Mercury Controls Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 110  Packet Pg. 237 of 445  *NOT YET APPROVED* 35 0290171_20250418_ms29 (a) The Director shall implement a mercury control program consis ng of load reduc on assessment, Pollu on preven on, Source Control Measures, treatment control measures, Green Stormwater Infrastructure, and measures to reduce risk to consumers of Bay fish. (b) Source Property Iden fica on and Abatement. The Director shall inves gate and iden fy proper es and land areas that likely contribute mercury to the Storm Drain System and take ac on to abate or cause abatement of the mercury sources or refer the iden fied proper es to the Regional Water Board for follow-up measures. Source proper es referred to the Water Board shall implement interim enhanced opera on and maintenance measures as required by the Director. (c) Designated Proper es. Proper es in industrial areas and in other zones designated in City regula ons shall implement treatment control measures, GSI measures, or other control measures to treat Stormwater per the MRP, regional guidance and City regula ons. Part 8 Polychlorinated Biphenyls (PCBs) Controls 16.11.340 Polychlorinated Biphenyls Controls (a) The Director shall implement a polychlorinated biphenyls (PCBs) control program consis ng of an assessment methodology and data collec on program to iden fy and quan fy reduc ons of PCB loads in Stormwater through implementa on of Pollu on preven on, Source Control, and treatment control, Green Stormwater Infrastructure, and other measures. (b) Source Property Iden fica on and Abatement. The Director shall inves gate and iden fy proper es and land areas that likely contribute PCBs to the Storm Drain System and take ac on to abate or cause abatement of the PCB sources and/or refer the iden fied proper es to the Regional Water Board for follow-up measures. Source proper es referred to the Water Board shall implement interim enhanced opera on and maintenance measures as required by the Director. (c) Designated Proper es. Proper es in industrial areas and in other zones designated in City regula ons or proper es otherwise designated by the Director shall implement treatment Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 111  Packet Pg. 238 of 445  *NOT YET APPROVED* 36 0290171_20250418_ms29 control measures, GSI measures, or other control measures to treat Stormwater according to the requirements of the MRP, regional guidance, and City regula ons. 16.11.350 Management of PCBs During Building Demoli on Ac vi es (a) Applicability. This sec on shall apply to projects that require a Demoli on Permit. Demoli ons of single-family residences or any wood-framed structures are exempted from this requirement. (b) PCB Screening Assessment. Any Person undertaking a project that involves the demoli on of an en re Building constructed or Remodeled between January 1, 1950 and December 31, 1980, inclusive, shall perform a PCB Screening Assessment to determine the presence of PCBs and other hazardous substances at the demoli on site and to follow applicable disposal requirements. The PCB Screening Assessment shall be submi ed prior to issuance of any demoli on Permit, in a form and substance prescribed by the Director. The Director may require the PCB Screening Assessment to include any informa on reasonably necessary to determine the concentra on of PCBs in any primary building materials. (c) For demoli on of Buildings containing materials with PCBs concentra ons of 50 ppm or greater approved on and a er July 1, 2023 iden fied per required sampling procedures of this PCBs Program, demoli on contractors shall no fy the City at least two weeks before any demoli on is to occur. Applicant shall determine if addi onal agency no fica on or approvals, or addi onal sampling for and abatement of PCBs, is required under other applicable laws. Applicant shall comply with all federal and state laws and regula ons, including but not limited to health, safety, and environmental laws and regula ons, that relate to management and cleanup of any and all PCBs, including but not limited to PCBs in priority building materials, other PCBs-Contaminated materials, PCBs-Contaminated liquids, and PCBs waste. The requirements of this sec on do not replace or supplant the requirements of state or federal law, including but not limited to the Toxic Substances Control Act, 40 Code of Federal Regula ons (CFR) Part 761, and California Code of Regula ons (CCR) Title 22. The demoli on contractors shall provide no fica on to the City if it is determined that advance approval from the U.S. EPA is required. If advance approval to U.S. EPA is not required, then the demoli on contractors shall submit a Hazardous Waste manifest for the disposal of the PCBs materials to the City within one week of it becoming Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 112  Packet Pg. 239 of 445  *NOT YET APPROVED* 37 0290171_20250418_ms29 available. The demoli on contractors shall no fy the City that the demoli on is complete within five business days of comple on. (d) Applicants shall submit wri en no fica ons documen ng any changes in the informa on submi ed in compliance with this sec on to the Director when changes in project condi ons affect the informa on submi ed with the Permit applica on. (e) Applicants shall conduct onsite PCB control measures described in City regula ons and as prescribed by the Director. (f) The Director shall inspect Construc on Sites during demoli on to verify adequate implementa on of Construc on Site controls and proper disposal of PCB-containing materials. (g) Recordkeeping. Applicants shall maintain documenta on of the results of the priority building materials screening assessment for a minimum of five years a er submi al to the City. (h) Liability. Applicant is responsible for safely and legally complying with the requirements of this sec on. Neither the issuance of a Permit under the requirements of the Director or building department, nor the compliance with the requirements of this sec on or with any condi on imposed by the City, shall relieve any Person from responsibility for damage to Persons or property resul ng therefrom, or as otherwise imposed by law, nor impose any liability upon the City for damages to Persons or property. Part 9 Copper Controls 16.11.360 Copper Controls (a) Pools, Spas, and Fountains. Discharges from pools, spas, and fountains that contain copper- based chemicals are prohibited from entering the Storm Drain System. Owners of pools, spas, and fountains shall either install a connec on to a private sanitary sewer, including a Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 113  Packet Pg. 240 of 445  *NOT YET APPROVED* 38 0290171_20250418_ms29 connec on for filter backwash, or divert the Discharge for use in landscaping. Discharge diverted for use in landscaping shall not overflow the landscaped area. (b) Sources. Each industrial source in the City shall have BMPs in place to minimize Discharge of copper to the Storm Drain System, including considera on of roof runoff that might accumulate copper deposits from ven la on systems on site. (c) Roofing Materials. Copper metal roofing, copper granule containing asphalt shingles, and copper gu ers shall not be permi ed for use on any residen al, commercial, or industrial Building for which a Building Permit is required. Copper flashing for use under les or slates and small copper ornaments are exempt from this prohibi on. Replacement roofing and gu ers on historic structures are exempt, provided that the roofing material used shall be pre-pa nated at the factory. For the purposes of this exemp on, the defini on of "historic" shall be limited to structures designated as Category 1 or Category 2 Buildings in the current edi on of the Palo Alto Historical and Architectural Resources Report and Inventory. (d) Sites requiring copper controls shall comply with all applicable BMPs described in City regula ons and otherwise prescribed by the Director. SECTION 3. If any Sec on, Subsec on, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining por on or Sec ons of the Ordinance. The Council hereby declares that it would have adopted the Ordinance and each Sec on, Subsec on, sentence, clause or phrase thereof irrespec ve of the fact that any one or more Sec ons, Subsec ons, sentences, clauses or phrases be declared invalid. SECTION 4. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Sec on 15308 of the CEQA Guidelines, because it is an ac on taken by the City as a regulatory agency to assure the maintenance, restora on, enhancement, or protec on of the environment where the regulatory process involves procedures for protec on of the environment. // // // Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 114  Packet Pg. 241 of 445  *NOT YET APPROVED* 39 0290171_20250418_ms29 SECTION 5. This ordinance shall be effec ve on the thirty-first day a er the date of its adop on. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ City A orney or Designee City Manager ____________________________ Director of Public Works Item 8 Attachment C - Ordinance Amending PAMC Chapter 16.11 (Stormwater Pollution Prevention)        Item 8: Staff Report Pg. 115  Packet Pg. 242 of 445  *NOT YET APPROVED* 1 0290172_20250421_MS29 Resolution No. ________ A Resolution of the Council of the City of Palo Alto Adopting Regulations for Stormwater Pollution Prevention R E C I T A L S A. Chapter 16.11 of the Palo Alto Municipal Code, entitled Stormwater Pollution Prevention, imposes stormwater management requirements intended to protect the receiving waters and storm drain system and implement the requirements of the Municipal Regional Stormwater Permit (“MRP”) issued by the San Francisco Bay Regional Water Quality Control Board (“Regional Water Board”). B. On September 15, 2025, an ordinance amending Chapter 16.11 was introduced. To implement that amended ordinance, City staff as directed by the City Engineer have prepared the Palo Alto Regulations for Stormwater Pollution Prevention, incorporated by reference in this Resolution. C. Chapter 12.20 of the Palo Alto Municipal Code provides that the City Council may by resolution adopt rules and regulations governing utility services, including storm drainage. NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, the Palo Alto Regulations for Stormwater Pollution Prevention, incorporated herein, are approved and adopted. Except as otherwise specified in the Regulations, the Regulations shall become effective on the date that the ordinance amending Chapter 16.11 introduced September 15, 2025, goes into effect. Upon adoption, the Regulations will be published on the City’s website, paloalto.gov. // // // // // Item 8 Attachment D - Resolution Adopting Regulations for Stormwater Pollution Prevention        Item 8: Staff Report Pg. 116  Packet Pg. 243 of 445  *NOT YET APPROVED* 2 0290172_20250421_MS29 SECTION 2. The Council finds that the adoption of this Resolution is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15308 of the CEQA Guidelines, because it is an action taken by the City as a regulatory agency to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ _____________________________ City Attorney or Designee City Manager _____________________________ Director of Public Works Item 8 Attachment D - Resolution Adopting Regulations for Stormwater Pollution Prevention        Item 8: Staff Report Pg. 117  Packet Pg. 244 of 445  *NOT YET APPROVED* Ordinance No. ______ Ordinance of the Council of the City of Palo Alto Amending Title 16 of the Palo Alto Municipal Code to Add a New Chapter 16.13, Requirements for Food Facili es Related to Water Pollu on Preven on and Management of Fats, Oils, and Grease The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and Declara ons. The City Council finds and declares as follows: A. Urban Stormwater Runoff is considered a significant pathway for Pollutants into local creeks and the San Francisco Bay. Rain, irriga on, and other water flows wash Pollutants off impervious surfaces like streets, sidewalks, roofs, driveways, and parking lots into Storm Drain Systems and creeks and, ul mately, to the San Francisco Bay. Water that flows to the Bay from the Storm Drain System and creeks does not receive any treatment and is o en contaminated by Pollutants that can be toxic to fish, wildlife, and people. B. Fats, Oils and Grease generated by Food Facili es can easily clog Sanitary Sewer System pipes when flushed down the drain without pretreatment. Clogged pipes can result in Sanitary Sewer System backups and overflows, pollute local creeks and the Bay, and cause significant infrastructure damage crea ng a financial strain on businesses, residents, and the City. C. The City is required to comply with the State Water Resources Control Board Order No. WQ 2022-0103-DWQ Statewide Waste Discharge Requirements General Order for Sanitary Sewer Systems, which requires protec on of the Sanitary Sewer System and elimina on of preventable Sanitary Sewer Overflows. D. Protec on of the Storm Drain System, Sanitary Sewer System, and local Receiving Waters requires strict regula ons to prevent discharges and damage to infrastructure. Water quality requirements in the Municipal Regional Stormwater Permit issued by the San Francisco Bay Regional Water Quality Control Board, the U.S. Environmental Protec on Agency "General Pretreatment Regula ons for Exis ng and New Sources of Pollu on" published at Title 40 of the Code of Federal Regula ons, Part 403, and the Federal Water Pollu on Control Act, 33 U.S.C. sec on 1251 shall be followed. E. In order to be er protect public health, local Receiving Waters, and the City’s Storm Drain and Sanitary Sewer Systems, the City now intends to update its Municipal Code to include all applicable Food Facility requirements within the same Chapter 16.13, as opposed to dividing Stormwater and pretreatment requirements between mul ple chapters. Item 8 Attachment E - Ordinance Adopting New PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease)        Item 8: Staff Report Pg. 118  Packet Pg. 245 of 445  *NOT YET APPROVED* 0290174_20250422_ms29 2 F. Food Facili es shall also adhere to requirements in Chapter 16.11, a component of the City’s Stormwater Compliance Program, which supports the City’s authority to implement Stormwater Pollu on preven on requirements mandated by the Regional Water Quality Control Board. SECTION 2. Title 16 of the Palo Alto Municipal Code is amended to establish Chapter 16.13 to read as follows: Item 8 Attachment E - Ordinance Adopting New PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease)        Item 8: Staff Report Pg. 119  Packet Pg. 246 of 445  *NOT YET APPROVED* 0290174_20250422_ms29 3 Table of Contents Part 1 Purpose and Intent; Defini ons _____________________________________________ 5 16.13.010 Purpose and Intent ________________________________________________________ 5 16.13.020 Defini ons _______________________________________________________________ 5 Part 2 General Provisions ______________________________________________________ 10 16.13.030 Administra on ___________________________________________________________ 10 16.13.040 Applicability _____________________________________________________________ 11 16.13.050 Conflicts with Other Laws __________________________________________________ 11 16.13.060 Alternate Means and Methods ______________________________________________ 11 16.13.070 Reten on of Records ______________________________________________________ 11 16.13.080 Obstruc on, Damage, or Impairment to Storm Drain and Sanitary Sewer Systems and Rights-of-way ____________________________________________________________________ 11 Part 3 Authority to Inspect and Enforce ___________________________________________ 12 16.13.090 Authority to Inspect _______________________________________________________ 12 16.13.100 Authority to Require Correc ve Ac ons _______________________________________ 12 16.13.110 Fees and Charges _________________________________________________________ 13 Part 4 Prohibited Discharges, Devices, and Connec ons ______________________________ 13 16.13.120 Prohibited Discharges _____________________________________________________ 13 16.13.130 Prohibited Devices, Equipment, and Connec ons _______________________________ 14 Part 5 Grease Control Device Requirements ________________________________________ 14 16.13.140 Requirements for Installing or Replacing Exis ng Grease Control Devices _____________ 14 16.13.150 Grease Control Device Maintenance Requirements ______________________________ 14 Part 6 Roo op Grease Containment System Requirements ____________________________ 14 16.13.160 Requirements for Installing or Replacing Exis ng Roo op Grease Containment Systems _ 14 Part 7 Waste Oil Management Requirements ______________________________________ 14 16.13.170 Waste Oil Storage Requirements for Food Facili es ______________________________ 14 16.13.180 Waste Oil Management and Maintenance Requirements for Food Facili es ___________ 15 Part 8 Spill Response Requirements ______________________________________________ 15 16.13.190 Requirements for Fats, Oils, and Grease Spill Response Ac vi es Conducted at and Associated with Food Facili es _______________________________________________________ 15 Part 9 Best Management Prac ces for Exis ng Facili es ______________________________ 15 16.13.200 Required Best Management Prac ces for Exis ng Facili es ________________________ 15 Part 10 Mobile Food Facili es ___________________________________________________ 15 Item 8 Attachment E - Ordinance Adopting New PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease)        Item 8: Staff Report Pg. 120  Packet Pg. 247 of 445  *NOT YET APPROVED* 0290174_20250422_ms29 4 16.14.210 Mobile Food Facili es _____________________________________________________ 15 Part 11 Food Facility Closure or Ownership Change __________________________________ 15 16.14.220 Food Facility Closure or Change of Ownership __________________________________ 15 Item 8 Attachment E - Ordinance Adopting New PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease)        Item 8: Staff Report Pg. 121  Packet Pg. 248 of 445  *NOT YET APPROVED* 0290174_20250422_ms29 5 Part 1 Purpose and Intent; Defini ons 16.13.010 Purpose and Intent The purpose of this Chapter is to control and limit impacts from Fats, Oils, and Grease (FOG) generated by Food Facili es to the City of Palo Alto (City) Storm Drain System, Sanitary Sewer System, right-of-way, and Receiving Waters, including the San Francisco Bay (Bay) and local creeks, marshes, wetlands and other natural habitats, as well as to protect human health and the environment. This Chapter is enacted and shall be implemented in a manner consistent with the U.S. Environmental Protec on Agency "General Pretreatment Regula ons for Exis ng and New Sources of Pollu on" published at Title 40 of the Code of Federal Regula ons, Part 403, the Porter-Cologne Water Quality Control Act (Water Code Sec on 13000 et seq.), and the Federal Clean Water Act (33 U.S.C. Sec on 1251 et seq.) (CWA), as amended from me to me. This Chapter is designed to be no less stringent than regional, state or federal regula ons, rules, orders, and policies but in some respects is more stringent. The City intends to update and modify this Chapter as needed to con nue to meet state and regional requirements and provide a program for protec on of the San Francisco Bay and other Receiving Waters. If any provision of this Chapter conflicts with state or regional requirements, as amended or updated, the more stringent and environmentally protec ve provision shall apply. This Chapter supplements the provisions of Chapters 16.09 and 16.11 of the Palo Alto Municipal Code, which apply to uses and ac vi es in the City more broadly, as well as Food Facili es. This Chapter is intended to complement, rather than supersede, the provisions of City building codes and regula ons applicable to the installa on and opera on of grease capturing equipment. 16.13.020 Defini ons The following terms, whenever used in this Chapter, are capitalized and shall be as defined herein. For purposes of this Chapter, terms defined in Chapter 16.11 shall have the same meaning in this Chapter, 16.13, except to the extent expressly modified in this Sec on. (a) “A” defini ons: Reserved (b) “B” defini ons: (1) “Best Management Prac ces” or “BMPs” means a combina on of general good housekeeping prac ces, Pollu on preven on and educa onal prac ces, opera ons and maintenance procedures, and other prac ces to prevent or reduce to the Maximum Extent Prac cable Non-Stormwater Discharges directly or indirectly to the Storm Drain System, Sanitary Sewer System, right-of-way, or Receiving Waters. (2) “Building” means any structure used or intended for suppor ng or sheltering any use or occupancy. Item 8 Attachment E - Ordinance Adopting New PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease)        Item 8: Staff Report Pg. 122  Packet Pg. 249 of 445  *NOT YET APPROVED* 0290174_20250422_ms29 6 (c) “C” defini ons: (1) “City” or “The City” means City of Palo Alto, California. (2) “Community Food Producer” means a producer of agricultural products on land that is not zoned for agricultural use but is otherwise in compliance with applicable local land use and zoning restric ons, including but not limited to restric ons governing personal gardens, community gardens, school gardens, and culinary gardens. (d) “D” defini ons: (1) “Director” means the Director of Public Works of the City of Palo Alto and their duly authorized designees. (2) “Discharge” means the introduc on of a Pollutant to the Storm Drain System, Sanitary Sewer System, or a Receiving Water from any ac vity or opera on associated with a Food Facility or Mobile Food Facility. (3) “Discharger” means any Person who causes or permits a Discharge. (e) “E” defini ons: (1) “Enforcement Response Plan” or “ERP” means a reference document for inspec on staff and management to ensure a consistent and transparent enforcement process for mee ng City, regional, and state requirements. (f) “F” defini ons: (1) “Fats, Oils, and Grease” or “FOG” means any substance, such as a vegetable or animal product, that is used in, or is a byproduct of, the cooking or food prepara on process, and that turns or may turn viscous or solidifies with a change in temperature or other condi ons. FOG does not include any products associated with petroleum. (2) “Food Facility” means a permanent establishment or mobile business opera ng for the purpose of preparing, packaging, serving, or providing food (including only pre- packaged) and/or drinks for consump on by that establishment’s members, customers, employees, or the general public. “Food Facility” does not include the following: (i) Loca ons where food is stored temporarily but not prepared or served; (ii) Private home kitchens, also known as co age food opera ons, as defined by the California Department of Public Health; (iii) Community Food Producers; (iv) Farmers’ markets and produce stands, except where food is prepared and served at the market; Item 8 Attachment E - Ordinance Adopting New PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease)        Item 8: Staff Report Pg. 123  Packet Pg. 250 of 445  *NOT YET APPROVED* 0290174_20250422_ms29 7 (v) Kitchen facili es principally for individual use by employees ancillary to another primary use (i.e., office break rooms); and (vi) Public events at temporary loca ons without connec ons to the Sanitary Sewer System and Storm Drain System. (3) “Food Facility Development Project” means new construc on or replacement of a structure built to serve solely as a Food Facility or a structure that includes a Food Facility and requires a Planning En tlement or Building Permit from the City. (4) “Food Waste Disposer” means a device installed under a sink drain used to shred and/or grind food waste into smaller par cles in order for it to drain to the Sanitary Sewer System. (g) “G” defini ons: (1) “Grease Control Device” means a device designed to collect and prevent passage of food waste and FOG into the Sanitary Sewer System. Grease Control Devices addressed in this Chapter include gravity grease interceptors, grease removal device(s), and hydromechanical grease interceptors. (h) “H” defini ons: Reserved (i) “I” defini ons: Reserved (j) “J” defini ons: Reserved (k) “K” defini ons: Reserved (l) “L” defini ons: (1) “Lateral” means the drainage piping and appurtenances that cons tute a Building’s connec on to the Sanitary Sewer System. (m) “M” defini ons: (1) “Maximum Extent Prac cable” or “MEP” means u lizing all reasonably feasible means, including implementa on of BMPs, control techniques, and system, design and engineering methods. (2) “Mobile Food Facility” means any vehicle used in conjunc on with a commissary or other permanent Food Facility upon which food is sold or distributed at retail. This does not include a “transporter” used to transport packaged food from a Food Facility, or other approved source to the consumer. (3) “Municipal Regional Permit” or “MRP” means the most recently adopted San Francisco Bay Area Municipal Regional Stormwater Permit, a mul -countywide municipal Stormwater NPDES Permit issued by the California Regional Water Quality Control Board, San Francisco Bay Region-Region 2 (Regional Water Board), to Item 8 Attachment E - Ordinance Adopting New PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease)        Item 8: Staff Report Pg. 124  Packet Pg. 251 of 445  *NOT YET APPROVED* 0290174_20250422_ms29 8 regulate Discharges from municipali es and local agencies in Alameda, Contra Costa, San Mateo, and Santa Clara coun es, and the ci es of Fairfield, Suisun City, and Vallejo to the San Francisco Bay. (n) “N” defini ons: (1) “Non-Stormwater Discharge” means any Discharge that is not en rely composed of Stormwater. Non-Stormwater Discharges include but are not limited to polluted groundwater, any Pollutant, Discharges allowed under an NPDES Permit, or an Illicit Discharge. (2) “NPDES” means Na onal Pollutant Discharge Elimina on System, which is a na onal program for issuing, modifying, revoking and reissuing, termina ng, monitoring and enforcing permits, and imposing and enforcing pretreatment requirements, under Sec ons 307, 402, 318, and 405 of the Federal Clean Water Act. (o) “O” defini ons: Reserved (p) “P” defini ons: (1) “Person” means any individual, partnership, firm, company, corpora on, associa on, joint venture, joint stock company, trust, estate, governmental en ty, or any other legal en ty; or their representa ves, agents, or designees. (2) “Pervious” refers to a material or surface (such as landscaping or natural landscape) that allows water to infiltrate below the surface. Pervious materials may include, but are not limited to, permeable interlocking concrete pavers, permeable pavers, Pervious concrete and porous asphalt. (3) “Planning En tlement” means approval provided by the City to develop a Building (or Buildings) or a piece of land for a specific use according to the City’s development standards, rules, and regula ons. (4) "Pollutants” or “Pollutant” means those substances that may cause or contribute to the degrada on of water quality of Receiving Waters and are harmful to aqua c life, human health and the environment. Pollutants associated with Food Facili es include cleaning agents, food waste, trash, and Fats, Oils, and Grease. (5) "Pollu on" means the presence, introduc on or Discharge into a Receiving Water of a Pollutant that has harmful or poisonous effects on aqua c life, ecological habitat, natural processes of creeks and waterbodies, public health and the environment. (q) “Q” defini ons: Reserved Item 8 Attachment E - Ordinance Adopting New PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease)        Item 8: Staff Report Pg. 125  Packet Pg. 252 of 445  *NOT YET APPROVED* 0290174_20250422_ms29 9 (r) “R” defini ons: (1) “Receiving Water” means waters of the State, as defined by the Porter-Cologne Water Quality Control Act. Receiving Waters include but are not limited to creeks, marshes, wetlands, shorelines, estuaries, and bays. (2) "Refuse" means and includes compostable materials, recyclable materials, and solid waste. Solid waste means solid and semisolid wastes, generated in or upon, related to the occupancy of, remaining in or emana ng from residen al premises or commercial premises including but not limited to garbage, trash, rubbish, ashes, and industrial wastes. (3) “Refuse Management Area” means an area located outdoors used to store Refuse bins and/or dumpsters, inside or outside of an enclosure. (4) “Responsible Party” means any Person who owns, operates, or manages a property, business, facility, or site, or who is otherwise responsible for the ac vi es thereon or the Person whose ac on or omission causes or results in a viola on of this Chapter. (5) “Roo op Grease Containment Systems” means the filters applied to roo op termina ons at Food Facili es. They are applied to roo op fans on exhaust systems to capture the aerosol form of FOG from food being cooked in the kitchen. (s) “S” defini ons: (1) “San Francisco Bay Regional Water Quality Control Board” or “Regional Water Board” means the regional agency whose mission is to preserve, enhance, and restore the quality of the San Francisco Bay’s water resources for the protec on of the environment, public health, and all beneficial uses. This agency oversees compliance of the MRP. (2) “Sanitary Sewer Overflow” means any overflow, spill, release, Discharge, or diversion of untreated or par ally treated wastewater from a Sanitary Sewer System. (3) “Sanitary Sewer System” means the collec on system, all sewers, treatment plants and other facili es owned or operated by the City for carrying, collec ng, storing, trea ng, reclaiming, and disposing of sanitary sewage and industrial wastes (as defined in Sec on 16.09.015 of Title 16 of the Palo Alto Municipal Code). (4) “Storm Drain System” means the storm drain facili es owned, managed, or operated by the City by which Stormwater is collected and/or conveyed to Receiving Waters, including but not limited to streets and roads, gu ers, curbs, inlets, piped storm drains, parking lots, pumping facili es, reten on and deten on basins, natural and human-made or altered drainage channels, reservoirs, and other drainage structures which are within the City’s jurisdic on. The Storm Drain System also includes pipes, underground and surface conveyances, and other components on private property Item 8 Attachment E - Ordinance Adopting New PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease)        Item 8: Staff Report Pg. 126  Packet Pg. 253 of 445  *NOT YET APPROVED* 0290174_20250422_ms29 10 and other property within the City’s limits not owned by the City that connect and/or route Stormwater and Stormwater Runoff to the City’s Storm Drain System. (5) “Stormwater” means any surface flow, runoff, and drainage consis ng en rely of water that originates from precipita on events. (6) “Stormwater Runoff” means flow that is created when precipita on falls on Impervious Surfaces or compacted Pervious surfaces that do not allow water to infiltrate into the ground. (7) “Structural Retrofit Best Management Prac ces” or “Structural Retrofit BMPs” means a retrofit to a structure, fixed feature, or property to prevent or minimize the poten al of a Discharge to the Storm Drain System, Sanitary Sewer System, or Receiving Waters. (t) “T” defini ons: Reserved (u) “U” defini ons: (1) “United States Environmental Protec on Agency” or “U.S. EPA” or “EPA” means the Environmental Protec on Agency of the United States of America, a federal agency, whose mission is to protect human health and the environment and the oversees compliance with environmental regula ons. (v) “V” defini ons: Reserved (w) “W” defini ons: (1) “Waste Oil” means FOG generated by cooking or Food Facility equipment that is not plumbed to the Sanitary Sewer System but is collected, stored, and hauled off-site. Waste Oil is also known as cooking oil, yellow oil, or tallow. (2) “Waste Oil Container” means any container used to store Waste Oil. (x) “X” defini ons: Reserved (y) “Y” defini ons: Reserved (z) “Z” defini ons: Reserved Part 2 General Provisions 16.13.030 Administra on The Director shall be responsible for the administra on and enforcement of the provisions of this Chapter and for promulga ng such orders, rules, condi ons of approval, and requirements as are necessary to accomplish the purposes of this Chapter. The primary regulatory document Item 8 Attachment E - Ordinance Adopting New PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease)        Item 8: Staff Report Pg. 127  Packet Pg. 254 of 445  *NOT YET APPROVED* 0290174_20250422_ms29 11 implemen ng this Chapter is Palo Alto Regula ons for Food Facili es Related to Water Pollu on Preven on and Management of Fats, Oils, and Grease. 16.13.040 Applicability This Chapter shall apply to all Food Facili es and Mobile Food Facili es as defined in this Chapter. Nothing in this Chapter shall be interpreted to infringe on any vested property right. 16.13.050 Conflicts with Other Laws In the event of any conflict between this Chapter and any federal or state law, regula on, order, or permit, the requirement that establishes the higher standard for public health or safety shall govern. Nothing in this Chapter shall preclude enforcement of any other applicable law, regula on, order, or permit. 16.13.060 Alternate Means and Methods If compliance with any sec on of these regula ons is infeasible, the Director, upon applica on in wri ng by the owner, a lessee, or an authorized representa ve of the Food Facility, is authorized to approve alternate means or methods of compliance with this Chapter. The Food Facility shall demonstrate, as required by the Director, that the proposed alterna ve is at least equivalent in quality, strength, effec veness, fire resistance, durability, and safety. The par culars of any such approval made by the Director shall be in wri ng and a signed copy shall be furnished to the applicant. 16.13.070 Reten on of Records Food Facili es shall comply with the records reten on requirements in the Palo Alto Regula ons for Food Facili es. 16.13.080 Obstruc on, Damage, or Impairment to Storm Drain and Sanitary Sewer Systems and Rights-of-way Dischargers shall be responsible for and liable to the City for any obstruc on, damage, or impairment to the Storm Drain System, Sanitary Sewer System, and other rights-of-way associated with a Discharge that causes an obstruc on, damage, or any other impairment to the Storm Drain System and Sanitary Sewer System. The City may assess a charge against the Discharger to reimburse the City for costs incurred to clean or repair said obstruc on, damage or impairment. Item 8 Attachment E - Ordinance Adopting New PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease)        Item 8: Staff Report Pg. 128  Packet Pg. 255 of 445  *NOT YET APPROVED* 0290174_20250422_ms29 12 Part 3 Authority to Inspect and Enforce 16.13.090 Authority to Inspect (a) The Director shall have the authority to inspect inside and outside of private and public Food Facili es, sites, property, structures, equipment, and drainage systems associated with Food Facili es, whether exis ng or under construc on, whenever necessary to ensure and confirm compliance with this Chapter and applicable state, regional, and City regula ons. (b) The Director shall be authorized to enter, without unreasonable delay, any premises subject to the requirements of this Chapter to conduct inspec ons and monitoring to assure compliance with this Chapter and applicable state, regional, and City regula ons. An inspec on fee shall be charged for each inspec on at the amount listed in the City’s Adopted Municipal Fee Schedule. (c) In the event the owner or occupant of the premises refuses entry a er a request to enter and inspect the premises has been made, the City is hereby empowered to seek assistance from any court of competent jurisdic on in obtaining such entry. 16.13.100 Authority to Require Correc ve Ac ons (a) Enforcement. The Director shall have primary responsibility for enforcement of this Chapter. The Director is authorized to take all ac ons reasonable and necessary to enforce this Chapter and any regula ons developed as required hereunder. Viola ons of this Chapter may be enforced as allowed by Title I of the Palo Alto Municipal Code. The Director is authorized to exercise the authority provided in the California Penal Code sec on 836.5. (b) The Director may require any Food Facility or Person deemed to have violated this Chapter to take any or all of the following ac ons: (1) Ensure that the Pollu on be remediated and the affected private and City property and infrastructure, as relevant, be restored within a specified me. The Responsible Party shall also be responsible for cleanup or reimbursement of cleanup costs incurred by the City for cleanup ac vi es associated with any Discharges that have entered the City’s right-of-way, Storm Drain and/or Sanitary Sewer Systems. (2) Implement applicable BMPs to protect the Storm Drain System, Sanitary Sewer System, and Receiving Waters to address Pollutant sources, including but not limited to, outdoor Waste Oil storage and disposal areas; outdoor Refuse Management Areas; outdoor parking areas and access roads; outdoor areas used by customers and employees; outdoor wash areas; outdoor drainage from indoor areas; roo op equipment; Grease Control Devices and associated plumbing connec ons; private Item 8 Attachment E - Ordinance Adopting New PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease)        Item 8: Staff Report Pg. 129  Packet Pg. 256 of 445  *NOT YET APPROVED* 0290174_20250422_ms29 13 Laterals; and other sources that have a reasonable poten al to contribute to Pollu on. (3) Install Structural Retrofit BMPs to address noncompliance of this Chapter. These projects shall be approved by the Director and may be require a Planning En tlement or Building Permit approval from the City. (c) The Director shall implement a Stormwater Enforcement Response Plan to facilitate mely and effec ve compliance with the requirements of this Chapter. The Enforcement Response Plan shall contain, at a minimum, the following: (1) Enforcement procedures; (2) Enforcement tools and scenarios; (3) Procedures for mely correc on of poten al and actual Discharges; and (4) Procedures for referral and coordina on with other agencies. (d) The remedies established in this Sec on are not exclusive. In addi on to any other remedies allowed under the Palo Alto Municipal Code, viola ons may be subject to penal es established by resolu on of the Council or any other enforcement mechanism allowed by law. 16.13.110 Fees and Charges The City may adopt reasonable fees and charges for reimbursement of costs of administering and enforcing this Chapter. Part 4 Prohibited Discharges, Devices, and Connec ons 16.13.120 Prohibited Discharges No Person shall cause, allow, or permit any Threatened or Actual Discharge or allow any of the following to flow or spill to any Pervious area, street, or City right-of-way. Prohibited Discharges include, but are not limited to, the following: (a) Fats, Oils, and Grease (FOG), including any liquid or other wastes containing FOG; (b) Grease Control Device contents; (c) Waste Oil Container contents; (d) Drippings or spills from Outdoor Refuse Management Areas; (e) Refuse, liquids, and other waste from indoor and outdoor storage and wash areas and public or employee areas associated with a Food Facility; and (f) FOG accumula ons on roo ops of Food Facili es from roo op termina ons. Item 8 Attachment E - Ordinance Adopting New PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease)        Item 8: Staff Report Pg. 130  Packet Pg. 257 of 445  *NOT YET APPROVED* 0290174_20250422_ms29 14 16.13.130 Prohibited Devices, Equipment, and Connec ons (a) Plumbing lines and drainage fixtures located in bathrooms shall not be connected to a Grease Control Device. (b) No dishwashers shall be connected to a Grease Control Device. (c) No Food Facility shall install, maintain, or use a Food Waste Disposer (as required in 16.08.110 of Title 16 of the Palo Alto Municipal Code). (d) Unless otherwise approved by the Director, no Food Facility shall install, maintain, or use any food waste liquefiers, aerobic or anaerobic food waste digesters, food composters, or similar devices designed or intended to digest biodegradable kitchen waste to be drained to the Sanitary Sewer System. (e) A Food Facility shall not connect any fixture or outdoor drainage to the City’s Storm Drain System except with permission from the Director. Part 5 Grease Control Device Requirements 16.13.140 Requirements for Installing or Replacing Exis ng Grease Control Devices Food Facili es shall install and operate a Grease Control Device and with required connected fixtures in compliance with the Palo Alto Regula ons for Food Facili es. 16.13.150 Grease Control Device Maintenance Requirements Grease Control Devices shall be maintained in accordance with the Palo Alto Regula ons for Food Facili es. Part 6 Roo op Grease Containment System Requirements 16.13.160 Requirements for Installing or Replacing Exis ng Roo op Grease Containment Systems Food Facili es shall install and maintain Roo op Containment systems in accordance with the Palo Alto Regula ons for Food Facili es. Part 7 Waste Oil Management Requirements 16.13.170 Waste Oil Storage Requirements for Food Facili es Food Facili es shall comply with the waste oil storage requirements in the Palo Alto Regula ons for Food Facili es. Item 8 Attachment E - Ordinance Adopting New PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease)        Item 8: Staff Report Pg. 131  Packet Pg. 258 of 445  *NOT YET APPROVED* 0290174_20250422_ms29 15 16.13.180 Waste Oil Management and Maintenance Requirements for Food Facili es All Food Facili es that use and store Waste Oil Containers shall comply with the requirements in the Palo Alto Regula ons for Food Facili es. Part 8 Spill Response Requirements 16.13.190 Requirements for Fats, Oils, and Grease Spill Response Ac vi es Conducted at and Associated with Food Facili es Fats, Oils, and Grease spill response ac vi es conducted at and associated with Food Facili es shall comply with the Palo Alto Regula ons for Food Facili es. Part 9 Best Management Prac ces for Exis ng Facili es 16.13.200 Required Best Management Prac ces for Exis ng Facili es In addi on to the Best Management Prac ces required by Chapter 16.11 of the Palo Alto Municipal Code, Food Facili es shall implement BMPs in accordance with the Palo Alto Regula ons for Food Facili es. Part 10 Mobile Food Facili es 16.14.210 Mobile Food Facili es Mobile Food Facili es shall comply with requirements of the Santa Clara County Department of Environmental Health and applicable sec ons of the Palo Alto Regula ons for Food Facili es. Part 11 Food Facility Closure or Ownership Change 16.14.220 Food Facility Closure or Change of Ownership (a) Food Facili es shall be responsible for a final cleanout and shu ng down of opera ons of their Grease Control Device(s) upon closure of their business and shall adhere to the Palo Alto Regula ons for Food Facili es. (b) GCDs shall be cleaned in accordance with the Palo Alto Regula ons for Food Facili es at the me of Food Facility business closure, closure of the Building in which the Food Facility is located, or a change in ownership of the Food Facility. (c) A GCD that has been abandoned in place or has been otherwise discon nued from further use shall have the contents removed therefrom, and the bo om perforated and be completely filled with crushed rock, sand, controlled low strength material, concrete, or other material as approved by the Director. Subsequent Food Facili es shall be made Item 8 Attachment E - Ordinance Adopting New PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease)        Item 8: Staff Report Pg. 132  Packet Pg. 259 of 445  *NOT YET APPROVED* 0290174_20250422_ms29 16 aware of the abandoned GCD and install a separate GCD that meets current requirements. (d) Building owners that occupy a space or Building with a Grease Control Device that is deemed out of compliance or was not adequately shut down when the previous Food Facility closed shall take responsibility for that device. Owners shall adhere to the Palo Alto Regula ons for Food Facili es. SECTION 3. If any sec on, subsec on, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining por on or sec ons of the Ordinance. The Council hereby declares that it would have adopted the Ordinance and each sec on, subsec on, sentence, clause or phrase thereof irrespec ve of the fact that any one or more sec ons, subsec ons, sentences, clauses or phrases be declared invalid. SECTION 4. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Sec on 15308 of the CEQA Guidelines, because it is an ac on taken by the City as a regulatory agency to assure the maintenance, restora on, enhancement, or protec on of the environment where the regulatory process involves procedures for protec on of the environment. // // // // // // // // // // // // Item 8 Attachment E - Ordinance Adopting New PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease)        Item 8: Staff Report Pg. 133  Packet Pg. 260 of 445  *NOT YET APPROVED* 0290174_20250422_ms29 17 SECTION 5. This Ordinance shall be effec ve on the thirty-first day a er the date of its adop on. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ City A orney or Designee City Manager ____________________________ Director of Public Works Item 8 Attachment E - Ordinance Adopting New PAMC Chapter 16.13 (Requirements for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease)        Item 8: Staff Report Pg. 134  Packet Pg. 261 of 445  *NOT YET APPROVED* 1 0290173_20250422_ms29 Resolution No. ________ A Resolution of The City of Palo Alto Adopting Regulations for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease R E C I T A L S A. Requirements for food facilities related to water pollution prevention and management of fats, oils, and grease (FOG) were previously included in Chapter 16.11 of the Palo Alto Municipal Code (PAMC), entitled Stormwater Pollution Prevention, and Chapter 16.09, entitled Sewer Use Ordinance. B. On September 15, 2025, in order to better protect public health, local receiving waters, and the City’s storm drain and sanitary sewer systems, the City introduced an ordinance that would add a new chapter to the PAMC, Chapter 16.13, and consolidate requirements for food facilities related to management of stormwater and FOG within that Chapter. To implement that ordinance, City staff as directed by the Director of Public Works have prepared the Palo Alto Regulations for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease, incorporated by reference in this Resolution. C. Chapter 12.20 of the Palo Alto Municipal Code provides that the City Council may by resolution adopt rules and regulations governing utility services, including wastewater and storm drainage utility services. NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, the Palo Alto Regulations for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease, incorporated herein, are approved and adopted. Except as otherwise specified in the Regulations, the Regulations shall become effective on the date that the ordinance introduced September 15, 2025, adding Chapter 16.13 to the PAMC goes into effect. Upon adoption, the Regulations will be published on the City’s website, paloalto.gov. // // // Item 8 Attachment F - Resolution Adopting Regulations for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease        Item 8: Staff Report Pg. 135  Packet Pg. 262 of 445  *NOT YET APPROVED* 2 0290173_20250422_ms29 SECTION 2. The Council finds that the adoption of this Resolution is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15308 of the CEQA Guidelines, because it is an action taken by the City as a regulatory agency to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: __________________________ _____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: __________________________ _____________________________ City Attorney or Designee City Manager _____________________________ Director of Public Works Item 8 Attachment F - Resolution Adopting Regulations for Food Facilities Related to Water Pollution Prevention and Management of Fats, Oils, and Grease        Item 8: Staff Report Pg. 136  Packet Pg. 263 of 445  *NOT YET APPROVED* 1 0290168_20240405_ms29 Ordinance No. _____ Ordinance of the Council of the City of Palo Alto Amending Title 16 of the Palo Alto Municipal Code to Add a New Chapter 16.66 (Hauled Liquid Waste) to Regulate the Discharge of Hauled Liquid Waste at the Palo Alto Regional Water Quality Control Plant (RWQCP) The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A. The Palo Alto Regional Water Quality Control Plant (RWQCP) accepts certain hauled liquid wastes from transporters that operate within the areas served by the RWQCP. B. Hauled liquid waste can cause adverse impacts to wastewater treatment plants because it is typically more concentrated than domestic wastewater and may not be equalized when discharged. C. Adverse impacts may include pass through, interference, sludge contamination, and hazards to personnel at the RWQCP. D. To prevent adverse impacts associated with hauled liquid wastes, the City of Palo Alto needs to adequately control the discharge of hauled liquid waste at the RWQCP. E. This ordinance revises the hauled liquid waste program by adding new requirements and clarifying existing requirements for the discharge of hauled liquid waste to the RWQCP, including suggested requirements from the 2007 Environmental Protection Agency Model Pretreatment Ordinance. SECTION 2. A new Chapter 16.66 (Hauled Liquid Waste) is hereby added to Title 16 of the Palo Alto Municipal Code to read as follows: Chapter 16.66 Hauled Liquid Waste SECTIONS: 16.66.010 Purpose 16.66.020 Definitions 16.66.030 Responsibility of the Director 16.66.040 Discharge of Hauled Liquid Waste 16.66.050 Hauled Liquid Waste Discharge Permit Required 16.66.060 Hauled Liquid Waste Discharge Permit Application Procedure 16.66.070 Approved Vehicles 16.66.080 Waste Monitoring 16.66.090 Reporting Requirements for Waste Haulers Item 8 Attachment G - Ordinance Adopting New PAMC Chapter 16.66 (Hauled Liquid Waste)        Item 8: Staff Report Pg. 137  Packet Pg. 264 of 445  *NOT YET APPROVED* 2 0290168_20240405_ms29 16.66.100 Retention of Records 16.66.110 Insurance 16.66.120 Hauled Liquid Waste Discharge Permit Modification 16.66.130 Hauled Liquid Waste Discharge Permit Suspension or Revocation 16.66.140 Hauled Liquid Waste Discharge Permit Denial, Suspension, or Revocation Hearing 16.66.150 Personnel Orientation 16.66.160 Enforcement and Penalties 16.66.170 Charges and Fees 16.66.180 Closure of Receiving Station 16.66.010 Purpose The purpose of this Chapter is to regulate the discharge of hauled liquid waste at the Palo Alto Regional Water Quality Control Plant (RWQCP). 16.66.020 Definitions The following terms and phrases, whenever used in this Chapter, shall be as defined herein. (a) “Chemical toilet waste” means human excrement and deodorizers collected from a portable chemical toilet. (b) “Cesspool” means a lined or partially lined underground pit into which raw sanitary sewage is discharged. (c) “City” means the City of Palo Alto located in the State of California. (d) “Director” means the City’s director of public works, his or her designee, or such other person as may be designated by the city manager. (e) “Hauled liquid waste” means sewage collected from a septic tank, seepage pit, cesspool, chemical toilet, or other similar device. (f) “Hauled liquid waste discharge permit” means a permit issued by the director, used as a control mechanism, which grants revocable permission and authorization to discharge hauled liquid waste to the receiving station. (g) “Hazardous material” means any material so designated by Title 17 of this code. (h) “Hazardous waste” means a material designated as a hazardous waste by Federal, State, or local regulations. (i) “Industrial waste” means any waste so designated by Chapter 16.09 of this code. Item 8 Attachment G - Ordinance Adopting New PAMC Chapter 16.66 (Hauled Liquid Waste)        Item 8: Staff Report Pg. 138  Packet Pg. 265 of 445  *NOT YET APPROVED* 3 0290168_20240405_ms29 (j) “NPDES permit” means National Pollutant Discharge Elimination System Permit and controls water pollution by regulating point sources that discharge pollutants into waters of the United States. (k) “Person” means any individual, partnership, copartnership, firm, company, corporation, association, joint stock company, trust, estate, governmental entity, or any other legal entity; or their legal representatives, agents, or assigns. This definition includes all Federal, State, and local government entities. (l) “Publicly Owned Treatment Works” or “POTW” means a treatment works, as defined by Section 212 of the Clean Water Act (33 U.S.C. Section 1292), which is owned by the City. This definition includes any devices or systems used in the collection, storage, treatment, recycling, and reclamation of sewage or industrial wastes of a liquid nature and any conveyances, which convey wastewater to a treatment plant. (m) “Receiving station” means the location that has been identified by the director as the authorized discharge point for hauled liquid wastes. (n) “RWQCP service area” means the cities of Los Altos, Mountain View, and Palo Alto; the town of Los Altos Hills; the East Palo Alto Sanitary District; and the unincorporated area of the County of Santa Clara where the Stanford University campus is located. (o) “Seepage pit” means a device comprised of one or more pits extending into porous strata, lined with open-jointed masonry or similar walls, capped and provided with a means of access such as a manhole cover and into which wastewater disposal system effluent is discharged. (p) “Sewage” means any material so designated by Chapter 16.09 of this code. (q) “Waste hauler” means any person engaged in the collection and transport of waste. 16.66.030 Responsibility of the Director Except as otherwise provided herein, the director shall administer, implement and enforce the provisions of this Chapter. The director shall be responsible for promulgating such orders, rules, regulations and requirements as are necessary to accomplish the purpose of this Chapter. Any powers granted to or duties imposed upon the director may be delegated by the director to a duly authorized City employee. 16.66.040 Discharge of Hauled Liquid Waste (a) Hauled liquid waste may only be discharged at the receiving station. Item 8 Attachment G - Ordinance Adopting New PAMC Chapter 16.66 (Hauled Liquid Waste)        Item 8: Staff Report Pg. 139  Packet Pg. 266 of 445  *NOT YET APPROVED* 4 0290168_20240405_ms29 (b) No waste hauler shall introduce or cause to be introduced into the receiving station the following pollutants, substances, or wastewater: (1) Commercial or industrial process wastewater, industrial waste, hazardous materials, or hazardous waste; (2) Stormwater, groundwater, or artesian well water, unless authorized by the director; (3) Wastes from soil boring or construction operations; (4) Sludge, biosolids, or any other solid materials from sewage or water treatment plants; (5) Grease, oil, or waste collected from grease control devices as defined by Chapter 16.13 of this code; (6) Any waste prohibited by Section 16.09.040 of this code; or (7) Any waste collected from any property or location outside the RWQCP service area, unless authorized by the director. 16.66.050 Hauled Liquid Waste Discharge Permit Required (a) No person shall deliver or discharge hauled liquid wastes at the receiving station without first obtaining a hauled liquid waste discharge permit from the director. (b) Any violation of the terms and conditions of a hauled liquid waste discharge permit shall be deemed a violation of this Chapter and shall subject the permittee to the enforcement provisions set forth in this Chapter. Obtaining a hauled liquid waste discharge permit from the City does not relieve a permittee of its obligation to comply with all Federal, State, or county waste hauling requirements or with any other applicable provisions of Federal, State, and local law. (c) No hauled liquid waste discharge permit is transferable without prior written consent of the director. A change of ownership (including a transfer of the majority of shares in a corporate discharger) requires submittal of a new hauled liquid waste discharge permit application and payment of any applicable fees. (d) The director may impose terms and conditions or other provisions in hauled liquid waste discharge permits which the director deems reasonable or necessary to carry out the purpose of this Chapter. (e) Issuance of a hauled liquid waste discharge permit establishes a conditional privilege to discharge. Issuance of a hauled liquid waste discharge permit does not create property rights, nor does it create a vested irrevocable right or privilege. The director has the right Item 8 Attachment G - Ordinance Adopting New PAMC Chapter 16.66 (Hauled Liquid Waste)        Item 8: Staff Report Pg. 140  Packet Pg. 267 of 445  *NOT YET APPROVED* 5 0290168_20240405_ms29 to refuse any hauled liquid waste load. 16.66.060 Hauled Liquid Waste Discharge Permit Application Procedure (a) An applicant for a hauled liquid waste discharge permit shall complete and submit a hauled liquid waste discharge permit application established by the director. The director may require information in addition to that required on the hauled liquid waste discharge permit application form as deemed reasonable or necessary to evaluate the hauled liquid discharge permit application. (b) Completed hauled liquid waste discharge permit applications shall be filed by the discharger not less than ten (10) calendar days in advance of commencing or recommencing discharge. The discharger shall not commence or recommence discharge prior to obtaining a hauled liquid waste discharge permit without specific, interim approval from the director to discharge during the permitting process. (c) The director may deny any application for a hauled liquid waste discharge permit for good cause, including, but not limited to, the following reasons: (1) The application contains false or misleading information; (2) The application is not accompanied by the required fee(s); (3) The issuance of the hauled liquid waste discharge permit would result in the discharge of wastes of such quantity or strength that the public health, safety, or public or private property are endangered; (4) The issuance of the hauled liquid waste discharge permit would cause the City to violate any NPDES permit conditions, or any Federal, State, or local laws or regulations; (5) The applicant has not provided adequate information to establish that its discharge will comply with all requirements of this Chapter and with such other terms and conditions as the director may deem necessary to include in the applicant's hauled liquid waste discharge permit; (6) The applicant has failed to pay or has outstanding fees, fines, or penalties owed to the City related to activities governed by this Chapter. (d) If the director denies the issuance of a hauled liquid waste discharge permit, any application fees paid shall not be returned to the applicant unless the director has ascertained that a hauled liquid waste discharge permit is not required to discharge the waste for which the hauled liquid waste discharge permit application is made. (e) Incomplete or inaccurate hauled liquid waste discharge permit applications will not be Item 8 Attachment G - Ordinance Adopting New PAMC Chapter 16.66 (Hauled Liquid Waste)        Item 8: Staff Report Pg. 141  Packet Pg. 268 of 445  *NOT YET APPROVED* 6 0290168_20240405_ms29 processed. 16.66.070 Approved Vehicles Access to and use of the receiving station shall be granted only to vehicles possessing a valid permit issued by the Santa Clara County Department of Environmental Health in addition to a hauled liquid waste discharge permit approved by the director. 16.66.080 Waste Monitoring (a) The director may conduct all inspection, surveillance, sampling, and monitoring necessary to assure compliance with applicable Federal, State, and local regulations including this Chapter. (b) The City shall have the right by and through its officers, employees, or other persons engaged by the City to do so, to take such samples of hauled liquid waste delivered by any person to the receiving station as the City in its sole discretion may deem appropriate to obtain a representative sample of each delivery's contents. Such samples may be taken prior to, during, or after any such delivery or discharge. Without being limited thereto, results of analyses made of such samples at an accredited laboratory may be used to determine a permittee's compliance with the provisions of this Chapter. (c) The director may require a waste hauler to provide representative sample and/or a representative waste analysis of any load prior to discharge. 16.66.090 Reporting Requirements for Waste Haulers (a) The director may require holders of hauled liquid waste discharge permits to submit reports to demonstrate or document compliance with this Chapter. (b) The director may require information on a waste hauler’s operations in addition to that required in the hauled liquid waste discharge permit application or other reports to evaluate waste hauler compliance with the provisions of this Chapter. (c) The director may establish an electronic submittal program for submission of reports, documents and data and require use thereof by holders of hauled liquid waste discharge permits. (d) Waste haulers that send electronic (digital) documents to the director to satisfy the requirements of this Section must meet all Federal, State, and local electronic signature requirements. Electronic data shall be in a format required by the director. The director may require reporting in both digital and traditional format. (e) Nothing in an electronic submittal program established by the director limits the use of the electronically submitted reports, documents, or data or any information contained Item 8 Attachment G - Ordinance Adopting New PAMC Chapter 16.66 (Hauled Liquid Waste)        Item 8: Staff Report Pg. 142  Packet Pg. 269 of 445  *NOT YET APPROVED* 7 0290168_20240405_ms29 therein as evidence in enforcement proceedings. (f) Waste haulers shall comply with all reporting requirements established by the director. A waste hauler’s failure to submit required reports, documents or data as required or by the specified submission deadline shall constitute a violation of the provisions of this Chapter. The director may allow submission of required reports, documents and/or data on the following business day in instances where the due date falls on a weekend or legal holiday. 16.66.100 Retention of Records Waste haulers subject to the reporting requirements of this Chapter shall retain, and make available for inspection and copying without unreasonable delay, all records of information obtained pursuant to this Chapter including, but not limited to, any required monitoring activities, any additional records of information obtained pursuant to monitoring activities undertaken by the discharger independent of such requirements, and documentation associated with best management practices. This includes electronic data and information records maintained and/or submitted in accordance with Section 16.66.090 of this Chapter. All records required to be maintained by this Chapter shall remain available for a period of at least three (3) years. This period shall be automatically extended for the duration of any pending investigation or enforcement of NPDES Permit conditions or where the discharger has been specifically notified of a longer retention period by the director. 16.66.110 Insurance No person shall deliver or discharge hauled liquid wastes at the receiving station unless such person, at his or her sole cost and expense, has and maintains in full force and effect the insurance policies, endorsements, certificates and/or binders required by the City. 16.66.120 Hauled Liquid Waste Discharge Permit Modification The director may modify any hauled liquid waste discharge permit for good cause, including, but not limited to, the following reasons: (a) To incorporate any new or revised Federal, State, or local requirements; (b) A change in the POTW that requires either a temporary or permanent reduction or elimination of the authorized discharge; (c) Information indicating that the permitted discharge poses a threat to the POTW, City personnel, or the receiving waters; (d) Violation of any terms or conditions of the hauled liquid waste discharge permit; Item 8 Attachment G - Ordinance Adopting New PAMC Chapter 16.66 (Hauled Liquid Waste)        Item 8: Staff Report Pg. 143  Packet Pg. 270 of 445  8 *NOT YET APPROVED* (e) Misrepresentations or failure to fully disclose all relevant facts in the hauled liquid waste discharge permit application or in any required reporting; (f) To correct typographical or other errors in the hauled liquid waste discharge permit; (g) To reflect a transfer of the facility ownership or operation to a new owner or operator; or (h) To implement programs or policies required or requested of the City by appropriate Federal, State, or local regulatory agencies. 16.66.130 Hauled Liquid Waste Discharge Permit Suspension or Revocation (a) The director may deny or suspend the use of the receiving station to any person who fails to comply with the orders, rules, regulations, and requirements adopted by the director or the terms and conditions contained in a hauled liquid waste discharge permit. (b) The director may suspend or revoke a hauled liquid waste discharge permit indefinitely for good cause, including, but not limited to, the following reasons: (1) Failure to complete a hauled liquid waste discharge permit application; (2) Misrepresentation or failure to fully disclose all relevant facts in the hauled liquid waste discharge permit application; (3) Knowingly or negligently providing false information on any hauled liquid waste discharge permit application, manifest, document, or other record submitted to the RWQCP; (4) Falsifying reports and certification statements; (5) Failure to accurately complete reports or other paperwork required by the director; (6) Failure to provide a representative sample upon request; (7) Tampering with monitoring equipment; (8) Disposal of wastes originating outside the RWQCP service area without prior approval from the director; (9) Disposal of wastes at the receiving station in a manner which causes or threatens to cause undue mess to the receiving station; Item 8 Attachment G - Ordinance Adopting New PAMC Chapter 16.66 (Hauled Liquid Waste)        Item 8: Staff Report Pg. 144  Packet Pg. 271 of 445  *NOT YET APPROVED* 9 0290168_20250417_ms29 (10) Disposal of wastes at any location other than the receiving station; (11) Failure to pay fees, fines, or penalties; (12) Failure to maintain a valid Environmental Health permit through the Santa Clara County Department of Environmental Health; (13) Failure to provide advance notice of the transfer of business ownership; (14) Violation of any term or condition of the hauled liquid waste discharge permit or any provision of this Chapter; or (15) Failure of the waste hauler to comply with the waste handling, disposal, and reporting requirements of the Santa Clara County Department of Environmental Health. (c) All hauled liquid waste discharge permits issued to a discharger are void upon the issuance of a new hauled liquid waste discharge permit to that discharger. 16.66.140 Hauled Liquid Waste Discharge Permit Denial, Suspension, or Revocation Hearing (a) An applicant or permit holder shall have at its request, a hearing before the city manager, or his or her designee, to appeal a decision by the director to deny the applicant’s discharge permit application, suspend, or revoke a discharger’s discharge permit. (b) The director shall give the applicant or permit holder written notice of intent to deny the applicant’s discharge permit application, suspend, or revoke a discharger’s discharge permit. The notice shall set forth specifically the grounds for the director’s intention to deny the applicant’s discharge permit application, suspend, or revoke a discharger’s discharge permit and shall inform the applicant or permit holder that they have ten (10) calendar days from the date of receipt of the notice to file a written request for a hearing with the director. The application shall be denied or the permit shall be revoked, or suspended if a hearing request is not received by the director within the ten (10) day period. (c) If the applicant, permit holder, or interested party or parties file(s) a timely hearing request, the city manager, or his or her designee, shall within ten (10) calendar days from the receipt of the request, set a time and place for the hearing. All parties involved shall have the right to offer testimonial, documentary, and tangible evidence bearing on the issues and to be represented by counsel. The decision of the city manager, or designee, whether to deny the applicant’s discharge permit application or to modify, make subject to additional terms, suspend, or revoke the discharger’s discharge permit shall be final. 16.66.150 Personnel Orientation Item 8 Attachment G - Ordinance Adopting New PAMC Chapter 16.66 (Hauled Liquid Waste)        Item 8: Staff Report Pg. 145  Packet Pg. 272 of 445  *NOT YET APPROVED* 10 0290168_20250417_ms29 (a) Waste haulers shall attend orientation provided by the City prior to initial discharge but after permit issuance. All waste haulers are responsible for ensuring new drivers know where the receiving station is and how to use it, or to arrange for a City-provided orientation prior to discharge. 16.66.160 Enforcement and Penalties (a) Warning. When the director finds that a user has violated, or continues to violate, any provision of this Chapter or a hauled liquid waste discharge permit, the director may issue verbal or written warnings in response to minor violations of this Chapter. Compliance with warnings does not limit further enforcement action by the City. (b) Notice of violation. When the director finds that a user has violated, or continues to violate, any provision of this Chapter, a hauled liquid waste discharge permit, or order issued hereunder, the director may serve upon that discharger a written notice of violation (NOV). The NOV may include a deadline for the discharger to respond with an explanation of the violation and a plan for the satisfactory correction and prevention thereof. Submission of such a plan in no way relieves the discharger of liability for any violations occurring before or after receipt of the NOV. Nothing in this Section shall limit the authority of the director to take any action, including emergency actions or any other enforcement action, without first issuing a notice of violation. (c) Administrative citation. When the director finds that a user has violated, or continues to violate, any provision of this Chapter or a hauled liquid waste discharge permit, the director may issue an administrative citation in accordance with the provisions contained in Chapter 1.12 of this code. Issuance of an administrative citation shall not be a bar against, or a prerequisite for, taking any other action against the person. (d) Emergency suspension. The director may immediately suspend any discharge, after informal notice to the user, whenever such suspension is necessary to stop an actual or threatened discharge, which reasonably appears to present, or cause an imminent or substantial endangerment to the health, safety, or welfare of persons. The director may also immediately suspend a discharger’s discharge that threatens to interfere with the operation of the POTW, or which presents, or may present, an endangerment to the environment. Any discharger notified of a suspension of its discharge shall immediately stop or eliminate its contribution. In the event of a discharger’s failure to immediately comply voluntarily with the suspension order, the director may take such steps as deemed necessary to prevent or minimize damage to the POTW or endangerment to any persons. The director may allow the discharger to recommence its discharge when the discharger has demonstrated to the satisfaction of the director that the period of endangerment has passed. (e) Civil penalties. (1) Any person who has violated, or continues to violate any provision of this Chapter or a hauled liquid waste discharge permit shall be liable to the City for a maximum Item 8 Attachment G - Ordinance Adopting New PAMC Chapter 16.66 (Hauled Liquid Waste)        Item 8: Staff Report Pg. 146  Packet Pg. 273 of 445  *NOT YET APPROVED* 11 0290168_20250417_ms29 civil penalty of up to twenty-five thousand dollars ($25,000) per day for each day in which such violation occurs. (2) The City may petition the Superior Court of California pursuant to Government Code Section 54740 to recover the sums in subsection (e)(1) of this Section as well as reasonable attorneys’ fees, court costs, and other expenses associated with enforcement activities, including sampling and monitoring expenses, and the cost of any actual damages incurred by the City. (3) Filing a suit for civil penalties shall not be a bar against, or a prerequisite for, taking any other action against a discharger. (f) Criminal penalties. As provided in Chapter 1.08 of this code, violations of the provisions of this Chapter shall be subject to criminal penalties. (g) Remedies nonexclusive. The remedies provided for in this Chapter are cumulative and not exclusive, and shall be in addition to the provisions of Chapters 1.08, 1.12, and 1.16 of this code, and all other remedies available to the City under Federal, State, or local law. The director may take any, all, or any combination of these actions against a noncompliant discharger. The director is empowered to take more than one enforcement action against any noncompliant discharger. Enforcement actions may be taken concurrently. 16.66.170 Charges and Fees (a) The City may adopt reasonable fees for reimbursement of costs of setting up and operating the City’s hauled liquid waste program, which may include: (1) Fees for treatment and discharge of hauled liquid waste; (2) Fees for hauled liquid waste discharge permit applications including the cost of processing such applications; (3) Fees for monitoring, inspection, and surveillance procedures including the cost of collection and analyzing a waste hauler’s discharge, and reviewing monitoring reports and certification statements submitted by waste haulers; (4) Fees for filing appeals; (5) Fees to recover administrative and other costs (not included in subsection (a)(2) of this Section) associated with the enforcement activity taken by the director to address discharger noncompliance; and (6) Other fees as the City may deem necessary to carry out the requirements of this Chapter. 16.66.180 Closure of Receiving Station Item 8 Attachment G - Ordinance Adopting New PAMC Chapter 16.66 (Hauled Liquid Waste)        Item 8: Staff Report Pg. 147  Packet Pg. 274 of 445  *NOT YET APPROVED* 12 0290168_20250417_ms29 The director may suspend discharge of hauled liquid waste at the receiving station for a period of time deemed reasonable or necessary, for good cause including, but not limited to: RWQCP operational issues, concerns, or violations; emergencies; natural disasters; power failures; RWQCP maintenance or repair; excess flow entering the RWQCP; and weather conditions. Hauled liquid waste discharge permit holders shall have no recourse against the City for any reason including, but not limited to, economic loss incurred as a result of receiving station closure. SECTION 3. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause, or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid. SECTION 4. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15308 of the CEQA Guidelines, because it is an action taken by the City as a regulatory agency to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment. // // // // // // // // // // // // // Item 8 Attachment G - Ordinance Adopting New PAMC Chapter 16.66 (Hauled Liquid Waste)        Item 8: Staff Report Pg. 148  Packet Pg. 275 of 445  *NOT YET APPROVED* 13 0290168_20250417_ms29 SECTION 5. This Ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ City Attorney or Designee City Manager ____________________________ Director of Public Works Item 8 Attachment G - Ordinance Adopting New PAMC Chapter 16.66 (Hauled Liquid Waste)        Item 8: Staff Report Pg. 149  Packet Pg. 276 of 445  *NOT YET APPROVED* 0290169_20250418_ms29 1 Resolution No. _____ Resolution of the Council of the City of Palo Alto Amending and Restating the Administrative Penalty Schedule and Civil Penalty Schedules for Certain Violations of the Palo Alto Municipal Code The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. Administrative Penalties. The administrative penalty schedule for violations of the Palo Alto Municipal Code established by Resolution No. 10144 is hereby amended and restated to read as follows: Standard penalty unless otherwise indicated below. $50 Second violation within 36 month period 150% of listed penalty (unless otherwise specified) Third & subsequent violations within 36 month period. 200% of listed penalty (unless otherwise specified) Delinquency penalty. 10% per month, simple interest, on delinquent amount 4.04.020 License or permit required. 300 4.04.100 Display of license or permit. 300 4.10.045 License fees for pushcart vendors. 300 4.10.050 Regulations for solicitors and peddlers. 350 4.10.055 Identification cards for solicitors. 250 4.10.057 Regulations for pushcart vendors. 300 4.10.070 License required - circus etc. 300 4.10.120 Arcade prohibited. 250 4.10.200 Pawn brokers prohibited. 250 4.10.230 Daily report of second hand dealers. 250 4.10.240 Maintaining reports - second hand dealers. 250 4.10.260 Failure to make report - second hand dealers. 250 4.10.270 Second hand goods held for inspection. 250 4.18.040 Unlawful dog or cat kennel. 250 4.30.010 Soliciting without a permit. 250 4.30.100 Conduct of solicitations. 250 4.32.020 Soliciting without a permit. 250 4.32.060 Investigation of records of solicitor. 250 4.32.090 Acts required during solicitation. 250 4.32.100 Restriction of solicitation. 250 4.32.110 Hours of solicitation. 250 4.34.020 Permit required - closing out sale. 250 4.39.030 Audible alarms. 250 4.39.040 Limitation on automatic dialing devices. 250 4.39.060 Registration of alarm. 250 4.39.110 Alarm violations. 100 4.42.020 Certificate of public convenience. 1000 Item 8 Attachment H - Resolution Amending and Restating Administrative Penalty Schedule        Item 8: Staff Report Pg. 150  Packet Pg. 277 of 445  *NOT YET APPROVED* 0290169_20250418_ms29 2 4.42.085 Controlled substance and alcohol testing. 500 4.42.090 Taxi owners permit. 5000 4.42.100 Taxi drivers permit expired. 250 4.42.130(b) Taxi drivers permit not displayed. 250 4.42.190 Taximeters. 500 4.42.200 Taxi cab operating regulations. 250 4.42.210(a) Interference with inspection. 500 4.42.210(b) Inspection of vehicles. 500 4.42.220 Operating regulations. 500 4.42.230 Maintenance of vehicles. 500 4.51.030 License required - bingo. 250 4.51.050 Minors restricted - bingo. 50 4.51.080 Staffing and operations - bingo. 250 4.51.110 Physical presence required - bingo. 250 4.52.020 License required - billiards and bowling. 1000 4.52.040 Minors restricted - billiards and bowling. 250 4.52.060 Offensive conduct - billiards and bowling. 250 4.52.070 Interference w/emerg. Access -billiards/bowling. 250 4.54.030(a) Permit required - massage establishment. 1000 4.54.060(a) Permit required - massage tech. 250 4.54.110 Massage establishment facilities. 250 4.54.130 Business name - massage. 250 4.55.030 License required - adult entertainment. 1000 4.56.030 License required - hot tub and sauna. 1000 4.56.060 Employee permit required - hot tub and sauna. 250 4.56.100 Hot tub/sauna establishment and operations. 250 4.56.120 Business name - hot tub and sauna. 250 4.56.150 Display of permit - hot tub and sauna. 250 4.56.200 Employment of persons < 18 - hot tub and sauna. 250 4.57.020 Permit required - firearms sales. 1000 4.57.095 Firearms dealers – business and security. 500 4.58.020 Minors restricted - narcotics paraphernalia shop. 750 4.58.030 Regulations - narcotics paraphernalia shop. 750 4.59.010 Pet shop requirements. 250 4.59.020 Pet shop sanitation. 250 4.59.030 Pet shop food. 250 4.59.040 Pet shop notification. 250 4.59.050 Pet shop - sale of dangerous or wild animals. 250 4.59.070 Dead animals. 250 4.59.080 Permit required - pet shop and kennel. 250 4.59.090 Permit required - grooming shop. 250 4.59.095 Sales of kittens and puppies. 250 4.59.100 Sales of raccoons. 250 4.59.105 Sales of rabbits, chicks, ducklings. 250 4.60.030 Business registration required 250 4.60.060 Business registry application required 250 4.60.120(a) Business registry fee delinquency 50% of registry fee if 1-30 days late 100% of fee or 31+ days late 5.12.010 Permit required - refreshment stand. 250 5.20.030 Discarding solid waste. 250 5.20.040 Accumulation of garbage. 250 5.20.050 Unauthorized bins, boxes, containers-first violation. 500 Second and subsequent violations. 1000 Item 8 Attachment H - Resolution Amending and Restating Administrative Penalty Schedule        Item 8: Staff Report Pg. 151  Packet Pg. 278 of 445  *NOT YET APPROVED* 0290169_20250418_ms29 3 5.20.080 Number of containers required. 250 5.20.090 Collection of recyclable materials. 250 for Commercial Premises 50 for Residential Premises 5.20.100 Collection of compostable materials. 250 for Commercial Premises 50 for Residential Premises 5.20.105 Contamination of containers. 250 for Commercial Premises 50 for Residential Premises 5.20.108 Multifamily properties/Commercial premises. 250 5.20.109 Requirements for special events. 100 5.20.111 Self-haul in violation of code 100 5.20.120 Improper container condition. 250 5.20.130 Maintenance of bins and boxes- first violation. 250 Second and subsequent violations. 500 5.20.160 Spillage or leakage of solid waste. 250 5.20.180 No accumulation of solid waste. 250 5.20.190 No burning, burial, or dumping of solid waste. 250 5.20.200 Hazardous waste. 500 5.20.220 Scavenging prohibited. 100 5.30.020 Polystyrene & Non-Recyclable Plastic. 500 5.30.025(a)-(d) Limitation on use of Disposable Foodware items 100 and other Disposable products. 5.30.025(e) Prohibition of third-party vendors providing utensils 350 or condiments unless requested by customer. 5.35.020 Bags at retail establishments. 500 5.35.030 Bags at supermarkets. 500 6.08.020(b) Interference with animal control officer. 250 6.16.010 No dog license. 50 6.16.080 Number of dogs allowed. 100 6.16.100 Leash Law. 100 6.20.010 Animals at large. 100 6.20.020 Animals on unenclosed premises. 100 6.20.030 Animals kept in enclosures. 100 6.20.035 Tying animals to bicycle racks or trees. 100 6.20.040 Nuisance on sidewalk. 100 6.20.045 Animal waste removal - first offense. 25 6.20.045 Animal waste removal - second offense. 50 6.20.045 Animal waste removal - third offense. 125 6.20.055 Animals in vehicles. 250 6.20.060 Bees close to property line. 100 6.20.080 Permit required - livestock. 100 6.20.090 Maintaining birds, goats, pigs and rabbits. 100 6.20.110 Number of cats kept. 100 6.20.120 Permit required - breeding animals. 100 6.20.130 Cat or dog in heat. 100 6.20.140 Barking dogs. 100 6.20.150 Vaccination required - animals. 100 6.20.160 Sanitary enclosures. 100 6.20.170 Slaughter of animals. 500 6.24.020 Permit required - construction of stable. 250 6.24.050 Maintenance of stable. 250 6.28.040 Possession of dangerous or wild animals. 500 6.32.010 Keeping diseased animals. 500 6.32.020 Confining animals with rabies. 500 Item 8 Attachment H - Resolution Amending and Restating Administrative Penalty Schedule        Item 8: Staff Report Pg. 152  Packet Pg. 279 of 445  *NOT YET APPROVED* 0290169_20250418_ms29 4 6.32.050 Dead animals in public. 500 6.36.010 Sales of certain animals. 250 8.04.020 Unauthorized removal of public trees 5000 per tree or reproduction cost up to 10,000, whichever is greater 8.04.020(a) Failure to comply with permit 500 per tree for work on public trees. 8.04.020(a) Damage to public trees 150 per inch diameter of damaged tree part 8.04.020(b) Fasten a sign, wire, or injurious material 250 per tree to any public tree. 8.04.020(c) Excavate or pave near public trees 500 per tree 8.04.080 Interference with tree enforcement. 500 8.08.010 Weeds as public nuisance. 250 8.10.040 Failure to disclose protected tree 500 per tree 8.10.050 Unauthorized removal of protected tree 5000 per tree or reproduction cost up to 10,000, whichever is greater 8.10.055 Failure to comply with tree replacement. 750 per tree 8.10.070 Failure to care for protected trees. 500 per tree 8.10.080(b) Failure to comply with development conditions. 500 per condition 9.04.010 Open container in business district. 100 9.04.020 Open container in City parking lot. 100 9.04.030 Open container near liquor store. 100 9.04.040 Social host. First violation 250 Second violation 500 Third & subsequent violation 1000 9.07.020 Safe Storage of Firearms 1000 9.08.010 Discharge of firearms/fireworks. 1000 9.09.010(a) Urinating/defecating on street or public place. 250 9.09.010(b) Igniting or maintaining outdoor fire. 250 9.10.030 Residential property noise limits. 100 9.10.040 Commercial property noise limits. 100 9.10.050 Public property noise limits. 100 9.10.060(b) Construction noise signs. 250 9.10.060(c) Construction noise. 250 9.10.060(d) Construction equipment noise. 100 9.10.060(e) Residential power equipment noise. 100 9.10.060(f) Leaf blower noise- first violation. 250 Leaf blower noise- second violation 500 Leaf blower noise- third and subsequent violation 1000 9.10.060(g) Street sweeping noise. 100 9.10.060(h) Refuse collection noise. 100 9.10.060(i) Safety device noise. 100 9.10.060(k) Public parking lot cleaning noise. 100 9.10.060(l) Business district street cleaning noise. 100 9.12.010 Loudspeakers. 150 9.14.020 Smoking prohibited - enclosed places. 250 (2nd violation in 1 year: $300; 3rd and subsequent violations in 1 year: $500) 9.14.025 Smoking prohibited – unenclosed areas. 250 (2nd violation in 1 year: $300; 3rd and subsequent violations in 1 year: $500) 9.14.030 Smoking prohibited - city cars. 250 (2nd violation in 1 year: $300; Item 8 Attachment H - Resolution Amending and Restating Administrative Penalty Schedule        Item 8: Staff Report Pg. 153  Packet Pg. 280 of 445  *NOT YET APPROVED* 0290169_20250418_ms29 5 3rd and subsequent violations in 1 year: $500) 9.14.035 Smoking prohibited – public parks and public events 250 (2nd violation in 1 year: $300; 3rd and subsequent violations in 1 year: $500) 9.14.040 Smoking prohibited - child care facilities. 250 (2nd violation in 1 year: $300; 3rd and subsequent violations in 1 year: $500) 9.14.050 Smoking prohibited – commercial areas and public events. 250 (2nd violation in 1 year: $300; 3rd and subsequent violations in 1 year: $500) 9.14.080 Location of tobacco vending machines. 1000 9.14.090 Display of tobacco products. 500 9.14.100 Failure to post “No Smoking” signs. 50 9.22.010 Impersonating public officials. 500 9.26.020 False representation as police officer. 250 9.28.010 Hotel guest register required. 250 9.28.020 Use of false name by hotel guest. 50 9.40.020 Landing aircraft at other than airport. 1000 9.44.010 Solicitation prohibited - public parking lot. 100 9.48.010 Displaying goods on sidewalk. 50 9.48.025 Sitting or lying on University Avenue sidewalks. 100 9.48.030 Operation of sidewalk elevator. 500 9.48.040 Throwing rubbish on streets. 250 9.48.050 Obligation to clean sidewalk. 200 9.50.010 Graffiti prohibited on public property. 500 9.56.030 Abatement of public nuisance. 500 unless otherwise specified 9.56.030(a)(5) Thirty-five foot site triangle. 200 9.56.030(a)(8) Foliage/branch obstruction. 200 9.56.030(a)(10) Excessive planting strip vegetation height. 150 9.60.030 Blocking entrances to City Hall. 500 9.60.050 Placing signs or climbing on City Hall. 500 9.60.060 Bicycles and skateboards at City Hall. 50 9.60.070 Alcoholic beverages prohibited - City Hall. 100 9.64.010 Overnight use of community facilities 250 9.74.030 Discrimination in housing. 250 9.78.020 Mosquito breeding places. 500 9.79.100 News rack violations. 100 12.08.010 Permit required - public right of way. 500 12.08.100 Removal of City Engineer monuments. 500 12.11.010 Building parklet on public right-of-way without 1000 permit 12.11.060 Violation of Chapter 12.11, permit, or regulations 500 12.12.010 Building on public easement without or in violation 1000 of encroachment permit 12.12.020 Failure to obtain or violation of commercial 500 sidewalk encroachment permit 12.16.030 Overhead wires in underground districts. 500 12.16.090 Property owner responsibility. 500 12.20.010 Utility rules and regulations 500 unless otherwise specified 12.20.010 Emergency water conservation regulations 100 (2nd violation in 1 year: $250; (Reso. Nos. 9509, 9460, 9449) 3rd and subsequent violations Item 8 Attachment H - Resolution Amending and Restating Administrative Penalty Schedule        Item 8: Staff Report Pg. 154  Packet Pg. 281 of 445  *NOT YET APPROVED* 0290169_20250418_ms29 6 in 1 year: $500) 12.20.020 Providing false information to City Utilities. 500 12.32.010 Water use regulation. 100 15.04.070 Violations of Uniform Fire Code. 500 unless otherwise specified 16.04.050 Violations of California Building Code as amended. 500 unless otherwise specified 16.05.040 Violations of California Mechanical Code as amended500 16.06.050 Violations of California Residential Code as amended.500 16.08.040 Violations of California Plumbing Code as amended. 500 16.09.200260 Violations of Sewer Use Ordinance 1000 16.10.020 Construction of private sewer system. 750 16.10.050 Permit required - private sewage system. 500 16.11 (All Sections) Violations of the Stormwater Pollution Prevention Ordinance 1000 16.13 (All Sections) Violations of the Food Facilities Ordinance 1000 16.14.040 Violations of California Green Building 500 Standards Code as amended 16.14.260 Failure to meet diversion requirements. $150 per ton of waste not diverted or $3000, whichever is greater 16.14.370 Failure to meet diversion requirements. $150 per ton of waste not diverted or $3000, whichever is greater 16.16.060 Violations of California Electrical Code as amended. 500 16.17.020 Violations of California Energy Code as amended. 500 16.18.020 Violations of International Pool and Spa Code as 500 amended 16.20.020 Design review required - signs. 500 16.20.090 Prohibited signs. 250 16.20.100 Prohibited locations - signs. 250 16.20.110 Fuel price signs required. 250 16.20.210 Non-compliance with sign ordinance. 250 16.20.230 Abandoned signs. 250 16.20.250 Parking of advertising vehicles. 250 16.24.080 Fence violation. 250 16.28.060 Permit required - excavation and grading. 500 16.28.330 Protection of adjacent property. 500 16.28.340 Deposits of earth, rock, etc. 500 16.32.010 Permit required - moving a building. 250 16.36.050 Curb painting without a permit. 100 16.36.060 House numbering required. 100 16.38.020 Certificate of occupancy – community housing. 500 16.40.040 Dangerous and substandard buildings. 500 16.40.090 Non-compliance with order of building official. 500 16.40.180 Interference with repair or demolition work. 500 16.42.090 Failure to submit seismic report. 250 16.45.070 Failure to pay fee - Stanford Research Park. 250 16.46.060 Failure to pay fee - San Antonio - West Bayshore. 250 16.47.050 Failure to pay housing impact fee. 250 16.49.050 Exterior alteration of downtown historic structures 10000 or a significant structure outside the downtown without or in violation of permit 16.49.060 Demolition of a significant downtown building 10000 without or in violation of permit Item 8 Attachment H - Resolution Amending and Restating Administrative Penalty Schedule        Item 8: Staff Report Pg. 155  Packet Pg. 282 of 445  *NOT YET APPROVED* 0290169_20250418_ms29 7 16.49.070 Demolition of a contributing downtown structure 10000 or significant structure outside the downtown without or in violation of permit 16.49.080 Maintenance of downtown historic structure. 10000 16.49.090 Demolition of downtown historic structure. 10000 16.52.070 Construction - flood hazards. 500 16.59.090 Failure to pay fee- Citywide Transportation Impact. 250 16.60.090 Failure to pay fee- Charleston/Arastradero. 250 16.62.020 Maintenance of expired building permit 200 for 31st through 60th day 400 for 61st through 120th day 800 for 121st day and thereafter 16.66 (All Sections) Violations of Hauled Liquid Waste 1000 Ordinance 17.04.020 Violations of hazardous materials storage. 500, unless otherwise specified 17.04.030 Specific obligation - hazardous materials. 500 17.10.010 General obligation - underground storage tanks. 750 unless otherwise specified 17.10.040 Permit required - underground storage. 500 17.10.140 Financial responsibility - underground storage. 500 17.10.150 Monitoring underground storage tanks. 1000 17.10.170 Unlawful abandonment - underground storage tanks.1000 17.12.010 Permit required - hazardous materials storage. 750 17.12.020 New hazardous materials storage facilities. 750 17.12.060 Hazardous materials storage facilities. 750 17.16.010 Hazardous materials management plan. 250 17.20.010 Hazardous materials inventory statement. 250 17.24.010 Hazardous materials discharge report. 750 17.32.010 Permit required - storage of hazardous materials. 1000 18.01.080 Violation of zoning laws. 500 18.16.060(d)Hotel stay in excess of 30 days. 200 18.38.020 Planned Community zoning (unless otherwise 500 specified in PC ordinance) 2500 beginning the 181st day following notice of violation Violations of Ordinance 5069 shall be subject to the penalties listed above except that the penalty for violations of Sections 4(b)(1), (2), (6), and (7) of Ordinance 5069 shall not be subject to the penalties above or to the escalators for second, third and subsequent violations, but shall be $2157 per day, for each and every day that a grocery store is not in operation within College Terrace Centre in accordance with the terms of Ordinance 5069. (The City Council intends to adjust this penalty amount periodically in future updates to this administrative penalty schedule to account for periodic increases in the Consumer Price Index for All Urban Consumers.) In calculating the penalties for such violations, Item 8 Attachment H - Resolution Amending and Restating Administrative Penalty Schedule        Item 8: Staff Report Pg. 156  Packet Pg. 283 of 445  *NOT YET APPROVED* 0290169_20250418_ms29 8 the City will allow for a grace period for any daily violations that do not exceed six (6) cumulative months in any five (5) year period. However, this grace period was previously applied to violations from 1/10/18 through 7/10/18, so there is no entitlement to any further grace period prior to 1/10/23. 18.42.060(a)Incompatibility of home occupations. 200 18.42.060(b) Employees of home occupation. 200 18.42.060(c) On site advertising of home occupation. 200 18.42.060(d) Floor area of home occupation. 200 18.42.060(e) Traffic related to home occupation. 200 18.42.060(f) Home occupation as nuisance. 200 18.42.060(g) Outdoor storage related to home occupation. 200 18.42.070 Servicing vehicles in residential zone. 250 18.52.050 Transportation demand management conditions 1000 4000 beginning the 181st day following notice of violation 18.84.200 Temporary uses. 250 22.04.030 Compliance with park regulations. 46 for violation of regulation R1-6 requiring payment of Foothills Park entry fee; 250 for violation of all other Park & Open Space Regulations. 22.04.040 Failure to obtain use permit. 300 22.04.150(b) Entry at unapproved location - Foothills Park 50 22.04.150(c) Person in park after hours - Foothills Park. 250 22.04.150(d) Speed limit 20MPH - Foothills Park. 250 22.04.150(e) Vehicles in Foothills Park after hours. 100 22.04.150(f) Skateboards and motorcycles - Foothills Park. 250 22.04.150(g) Smoking on trails - Foothills Park. 1000 22.04.150(h) Fires in Foothills Park. 1000 22.04.150(i) Use of trails - Foothills Park. 100 22.04.150(l) Unleashed dog - Foothills Park. 250 22.04.155 Restraint of dogs in City parks. 250 22.04.160 Permit required - sales in parks. 250 22.04.170 Violation of park use permit. 250 22.04.180 Sound in parks. 250 22.04.190 Unauthorized golf and other games in parks. 250 22.04.200 Unauthorized models and kites in parks. 100 22.04.210 Parking in parks. 100 22.04.215 Launch and takeout from ramp or dock. 250 22.04.220 Bicycle not permitted on trails. 250 22.04.230 Dumping in park. 1000 22.04.240 Interference with park use permit. 250 22.04.250 Park regulations . 250 unless otherwise specified 22.04.260 Discharge of weapons in park. 500 22.04.270 Removal of flora or fauna. 500 22.04.280 Removal of turf or soil. 500 22.04.290(a) Damaging, defacing, etc., property. 1000 Item 8 Attachment H - Resolution Amending and Restating Administrative Penalty Schedule        Item 8: Staff Report Pg. 157  Packet Pg. 284 of 445  *NOT YET APPROVED* 0290169_20250418_ms29 9 22.04.290(b) Marking, writing or printing on property. 1000 22.04.290(c) Attaching sign, etc., without permit. 500 22.04.290(d) Entering, etc., structure after posted hours. 250 22.04.290(e) Bringing portable tables without a permit. 100 22.04.300 Unlawful fire in city park. 1000 22.04.310 Enid Pearson Arastradero, Esther Park closure. 250 22.04.315 Byxbee Park and Baylands closed. 250 22.04.320 Parks closed. 250 22.04.321(a)Skateboarding in park after hours. 50 22.04.322 Trespass at Rinconada Park pool. 50 22.04.330 Alcohol in Cogswell Park. 250 22.04.331 Alcohol in Lytton Plaza. 250 22.04.332 Alcohol in Johnson Park. 250 22.04.333 Alcohol in Boulware Park. 250 22.04.334 Alcohol in Scott St. Minipark. 250 22.04.335 Alcohol in Greer Park. 250 22.04.336(a)Alcohol in Rinconada Park. 250 22.04.337 Alcohol in Mitchell Park. 250 22.04.338 Alcohol in Robles Park. 250 22.04.339 Alcohol in Hopkins Park. 250 22.04.340 Vehicles in park. 250 22.04.341 Alcohol in El Palo Alto Park. 250 22.04.342 Alcohol in Heritage Park. 250 22.04.343 Alcohol in Pardee Park. 250 22.04.350 Consumption of alcoholic beverage in vehicles. 250 22.04.360 Open container in park - alcoholic beverage. 250 22.04.370 Reckless driving in park. 250 22.04.380 Unlawful riding and towing in parks. 250 22.04.390 Duck pond. 100 SECTION 2. Municipal Code Civil Penalties. The civil penalty schedule for violations of the Palo Alto Municipal Code established by Resolution No. 10113 is hereby restated to read as follows*: Standard penalty unless otherwise indicated below. $46 10.36.020 No parking in parkways. 46 10.36.030(a)Storage on the street (72 hours). 86 10.36.040(a)(1)Vehicle for sale on street. 46 10.36.040(a)(2)Repairing vehicle on street. 46 10.36.050 Not w/in 18” of left curb--One-way street. 46 10.36.090 Removal of chalk markings. 111 10.40.020(a)(1)Parking violation – red curb. 46 10.40.020(a)(4)Parking violation – green curb. 46 10.40.020(a)(5)Parking violation – blue curb. 308 10.40.020(b)Parking in violation of sign (except blue curb). 46 10.40.020(b)Unlawful disabled parking - signs (blue curb). 308 10.40.040(b)Commercial vehicle double parking. 46 10.40.050 Unlawful parking in yellow loading zone. 46 10.40.060 Unlawful parking in passenger loading zone. 46 10.40.070 Unlawful alley parking. 46 10.40.100(g)Parking in a bus zone. 46 10.44.010(b)Overtime parking (limited time zone). 41 10.44.010(c)Additional violation of time limited or no 44 Item 8 Attachment H - Resolution Amending and Restating Administrative Penalty Schedule        Item 8: Staff Report Pg. 158  Packet Pg. 285 of 445  *NOT YET APPROVED* 0290169_20250418_ms29 10 parking zones. 10.44.020(a)Oversized vehicle parking in residential or 46 public facilities zones 2am-6am. 10.44.040(b)Not in space marking. 46 10.44.050(b)Parking violation--temporary sign. 46 10.44.060 Dealers--parking for sale or repair. 46 10.44.070(b)Parking in violation of posted sign. 46 10.44.080 Vehicle obstruction of roadway or lot. 46 10.44.090 Unattended vehicle, engine running. 111 10.45.110 Parking in on-street valet parking space. 46 10.46.110 Overtime residential parking permit (CT) 53 10.48.030 Truck route violation. 211 10.50.100(a)Violation of posted RPP permit sign 53 10.60.070(c)Permit not properly displayed. 41 10.60.070(d)Overtime permit parking in City lot. 41 10.60.070(e)Parking without permit in permit area. 46 22.04.150(e)In Foothills Park after hours. 111 22.04.210 Parking in parks. 111 Late payment penalty. 35 Collection cost penalty. 35% of listed penalty *All penalties include state-mandated assessments pursuant to Gov’t. Code 76000, S.B 1407(2008), and Government Code 76000.3 (S.B. 857, 2008) totaling $12.50. SECTION 3. Vehicle Code Civil Penalties. The civil penalty schedule for violations of the California Vehicle Code established by Resolution No. 10113 is hereby restated to read as follows*: 5200 No front license plate. $78 (If corrected within 31 days) 10 (state mandated) 5204(a) No registration tabs on license plate. 78 (If corrected within 31 days) 10 (state mandated) 21113(a) Parking on public grounds. 46 22500(a) Parking in an intersection. 46 22500(b) Parking in a crosswalk. 46 22500(d) Parking w/in 15 feet--fire station driveway. 46 22500(e) Blocking driveway. 46 22500(f) Parking on sidewalk. 46 22500(g) Parking or stopping--excavation site, etc. 46 22500(h) Double parking on roadway. 46 22500(i) Parking in a bus zone. 261 22500(l) Parking in front of accessible curb. 303 22500.1 Parking in a fire lane (public or private). 46 22502 Right hand wheels not w/in 18” of rt. curb. 46 22505(b) Parking on state highway violation. 46 22507.8(a-b)Unlawful parking in handicapped space. 303 22507.8(c)(1-2)Straddling Lines/Cross hatched, disabled. 303 22511.57(a) Parking/standing of vehicle in disabled parking $753 stall or space with invalid license/placard. 22511.57(b) Unauthorized use of license/placard for vehicle $753 parking/standing in disabled parking stall or space. 22511.57(c) Parking/standing of vehicle in disabled parking $753 Item 8 Attachment H - Resolution Amending and Restating Administrative Penalty Schedule        Item 8: Staff Report Pg. 159  Packet Pg. 286 of 445  *NOT YET APPROVED* 0290169_20250418_ms29 11 stall or space with counterfeit, forged, altered or mutilated license/placard for disabled. 22514 Parking within 15 feet of fire hydrant. 46 22515 Unattended vehicle, engine running. 111 22516 Person locked in vehicle. 111 22521 Parking within 7 1/2 feet of railroad tracks. 46 22522 Parking near sidewalk access ramp. 303 22523(a) Unlawful abandonment of vehicle on highway. 131 22523(b) Abandoned vehicle--public/private property. 131 22526 Entering/blocking intersection – anti-gridlock. 131 22951 No street, alley parking--patron vehicles. 46 *All penalties include state-mandated assessments pursuant to Gov’t. Code 76000, S.B 1407(2008), and Government Code 76000.3 (S.B. 857, 2008) totaling $12.50. SECTION 4. The Council finds that the adoption of this resolution does not meet the definition of a project under Public Resources Code Section 21065, thus, no environmental assessment under the California Environmental Quality Act is required. SECTION 5. This resolution shall become effective on the date that the ordinances introduced September 15, 2025, amending Chapters 16.09 and 16.11, and adding Chapters 16.13 and 16.66 to the Palo Alto Municipal Code become effective. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED: ________________________________ ________________________________ City Clerk Mayor ________________________________ ________________________________ City Attorney or Designee City Manager ________________________________ Director of Public Works Item 8 Attachment H - Resolution Amending and Restating Administrative Penalty Schedule        Item 8: Staff Report Pg. 160  Packet Pg. 287 of 445  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Planning and Development Services Meeting Date: September 15, 2025 Report #:2508-5040 TITLE QUASI-JUDICIAL. 400 Mitchell Lane [25PLN-00006]: Recommendation From the Planning and Transportation Commission to Uphold the Director’s Decision to Approve a Conditional Use Permit Allowing a Private University Educational Use Within an Existing Building. CEQA Status: Exempt in accordance with CEQA Guidelines Section 15301 (Existing Facilities). Zone District: PF. RECOMMENDATION The Planning and Transportation Commission (PTC) recommends that Council take the following action: 1. Uphold the Director’s Decision to approve the proposed Conditional Use Permit based on findings and subject to conditions of approval set forth in the Record of Land Use Action in Attachment B. EXECUTIVE SUMMARY On June 9, 2025 the Director of Planning and Development Services (Director) tentatively approved a Conditional Use Permit (CUP) to allow a Private University Education Use within an existing building at 400 Mitchell Lane. A request for hearing was filed pursuant to PAMC Section 18.77.060 on July 17, 2025, within the 14-day period allowed for such requests following the tentative decision. In accordance with the standard review process, the project went before the Planning and Transportation Commission for a recommendation and is now presented to the City Council for a final decision. The Planning and Transportation Commission recommended that Council uphold the Director’s decision to approve the project. In accordance with PAMC Section 18.77.060, this item is placed on the consent agenda within 45 days of the PTC’s recommendation. If Council chooses to remove the recommendation from the consent calendar, three votes are required. If pulled, the application shall be set for a new noticed hearing before the City Council. Item 9 Item 9 Staff Report        Item 9: Staff Report Pg. 1  Packet Pg. 288 of 445  BACKGROUND The request for public hearing did not specify any concerns with the project. Despite repeated requests to provide a reason for the appeal, the requestor has not responded to provide a specific reason, nor did the requestor attend the PTC hearing. 1 1 The July 30, 2025, Planning and Transportation Commission Report is available online at: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16561 Item 9 Item 9 Staff Report        Item 9: Staff Report Pg. 2  Packet Pg. 289 of 445  hearing3 and unanimously recommended that Council uphold the Director’s decision to approve the Conditional Use Permit application with modifications to add the word “University” to the CUP findings to further clarify the proposed use, revised language in Condition of Approval #13 to clearly indicate the duration of the CUP, and staff’s review of Conditions of Approval #22-33 to determine their applicability with removing any that do not apply to the project. The individual requesting the hearing did not attend the PTC hearing.4 ANALYSIS Staff and the PTC have reviewed the proposed project and find that the project is in conformance with applicable plans, policies, regulations, and the CUP findings. 5 The Comprehensive Plan land use designation for the project site is Public Park (P) as it is located on the same parcel as El Camino Park. This land use designation is defined as “Open lands whose primary purpose is public access for active recreation and whose character is essentially urban.” The existing building is situated on a 0.551-acre area of the larger parcel and is not part of the park dedication. The City subleases the portion of the larger parcel that is dedicated as parkland. The proposed use would not impact park services or conflict with public access to the site and is a conditionally permitted use of the site. Therefore, the proposed use is consistent with the Comprehensive Plan land use designation. 6 Staff has reviewed the proposed project’s consistency with the Public Facilities (PF) and applicable zoning standards. In the PF district, a Private University Education use is listed as a conditionally permitted use. The proposed project would not increase the existing floor area of the structure. No site plan changes are planned with the associated project beyond the replacement of a wooden accessibility ramp with a concrete replacement ramp. As part of the PTC recommendation, Condition of Approval #13 was revised to clearly indicate the duration of the CUP as provided by PAMC Section 18.77.100 – Duration of Permits. Staff also reviewed Conditions of Approval #22-33 to ensure their applicability to the project and removed one condition that did not apply to the project as reflected in Attachment B. Staff has concluded that the proposed use and renovation, as conditioned, comply with the City’s Zoning Code. 3 The July 30, 2025, Planning and Transportation Commission Report is available online at: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=16561 4 The July 30, 2025, Planning and Transportation Commission meeting can be viewed online at: https://youtube.com/watch?v=Yn2dywjPd4Q?feature=share 5 The Palo Alto Comprehensive Plan is available online: bit.ly/PACompPlan2030 6 The Palo Alto Zoning Code is available online: bit.ly/PAZoningCode Item 9 Item 9 Staff Report        Item 9: Staff Report Pg. 3  Packet Pg. 290 of 445  Multi-Modal Access & Parking Per Assembly Bill (AB) 209711 which “prohibits public agencies from enforcing minimum automobile parking requirements for developments located close to public transit,” no parking is required on sites located within 0.5 miles of a public transit station, such as the downtown Caltrain Station. There will be no reduction in parking spaces with the project. Currently, there are 17 parking stalls provided with 1 accessible parking stall. Williamson Act The California Land Conservation Act of 1965, commonly known as the Williamson Act, is a State program that discourages agricultural lands from being converted to urban uses, preserves open space, and promotes efficient urban growth patterns. In 1973, The City of Palo Alto and Stanford University entered into a Williamson Act Contract that included the subject property (Attachment F). Compatible uses with the governing contract are listed as the uses permitted by the regulations in the PF zoning district. Because a private educational use is a conditionally permitted use within the PF zoning district and the project will utilize an existing building, the proposed use is consistent with the existing Contract. Consistency with Application Findings The CUP findings for approval are set forth in PAMC Section 18.76.010 and are detailed in the June 9, 2025, tentative approval letter (Attachment C). However, staff notes that there are minor changes in text to the CUP findings to clarify the proposed use. Specifically, the Record of Land Use Action has been refined based on comments from the PTC to clearly indicate the proposed use as a Private University Educational use, which is differentiated from a private education use in the code. The findings were also modified to correct a minor factual error in reference to the age of the building and the age of the El Camino Park. These modifications are reflected in Attachment B. The proposed use is consistent with the Comprehensive Plan and is a conditionally permitted use set forth in the Zoning Code. Staff finds that the project would not be detrimental to the public health, safety, general welfare, or convenience. POLICY IMPLICATIONS Regional actions emphasize liveliness and activation at the Palo Alto Transit Center. VTA’s ad hoc subcommittee intends to transform the historic depot into an active, transit-friendly hub that enhances visitor experience, supports community engagement, and ensures long-term sustainability, with potential public-facing elements such as shared micromobility, limited retail/services, nonprofit space, and digital wayfinding/history kiosks. While MTC has funded near-term access work (Quarry Road Connection), that action does not set depot programming. The application before the Planning Director, the Planning and Transportation Commission, and now the City Council is a Conditional Use Permit for a private university educational use within an existing Stanford-owned building in the PF district, where such use is conditionally 11 The text for Assembly Bill 2097 is available online: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB2097 Item 9 Item 9 Staff Report        Item 9: Staff Report Pg. 4  Packet Pg. 291 of 445  permitted. Approval requires findings that the use “will not be detrimental or injurious to property or improvements in the vicinity, and will not be detrimental to the public health, safety, general welfare, or convenience,” and that it “will be located and conducted in a manner in accord with the Palo Alto Comprehensive Plan and the purposes of the Zoning Ordinance.” Given the subcommittee’s activation focus on public-oriented, energizing uses at the depot, one could find that the private university use may not, by itself, fully advance that vision. Others may note the site has been long vacant and the proposal reuses an existing building on Stanford property; on that basis, the use may be viewed as not detrimental, even if it does not fully deliver the activation outcomes envisioned by VTA. If three or more City Councilmembers wish to study this further, the item can be removed from the Consent Calendar and scheduled for a future hearing. FISCAL/RESOURCE IMPACT The recommendation in this report has no significant budget or fiscal impacts. The proposed project is a private development that is subject to cost recovery; therefore, processing of this application does not directly impact City resources. The proposed private university use would utilize a vacant building. STAKEHOLDER ENGAGEMENT 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. In accordance with Section 15301 (Existing Facilities), the project is exempt as the proposed activity will involve negligible or no expansion of the existing facilities. Item 9 Item 9 Staff Report        Item 9: Staff Report Pg. 5  Packet Pg. 292 of 445  two Bay laurel (Laurus nobilis) trees (as hazardous tree removals), processing these applications separately is not a violation of CEQA. The CUP includes interior improvements and the change in use. The hazardous tree removals are not required to accommodate the proposed use and therefore the two projects have independent utility. Moreover, even if the two tree removals (and required replacement planting) were included in the subject application, the project would continue to be exempt from CEQA in accordance with CEQA Guidelines Section 15301. Therefore, processing these projects separately does not change the conclusions of the environmental review under either application. ATTACHMENTS APPROVED BY: Item 9 Item 9 Staff Report        Item 9: Staff Report Pg. 6  Packet Pg. 293 of 445  24 24 25 University Avenue _Train Station American_Red Cross Fire_Station # 1 Rescue_Air GARAGE Tower_Well Building AA ELECTIONEER COURT Building BB Building CC Building DD The PlazaBloomingdales Building F LADY ELLEN PL Building W P F Chang's Parking Structure Sand Hill Station Building C 13-190Neuroscience_Health Center Building L AZMOOR PLACE Fleming's Prime_Steakhouse_& Wine Bar 87.4'54.1' 161.5' 193.0' 112.5' 193.0' 112.5' 105.0' 50.0' 225.0' 93.0' 12.5' 37.5' 112.5'130.5' 125.0' 143.0' 112.5' 50.0' 12.5' 93.0' 100.0' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 225.8' 112.5' 112.9' 12.5' 112.5' .8' 99.9' 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73.8' 14.4'.0'.2'6.8'.8'.9'.0'1.3'.8'.9'.8'.7'.8'1.1'12.1'9.8'17.2'23.9' 177.8' 66.1' 24.2' 566.5' 45.7' 7.0' 329.0' 135.0' 336.8' 143.1' 60.0' 602.1' 229.8'43.9' 124.5' 68.1'195.1'77.2' 204.2' 52.0' 288.7' 335.5' 235.2' 254.7' 85.8' 45.0' 114.5' 45.0' 114.5' 25.0' 6.0'25.0' 99.4' 50.0' 95.4' 60.0' 171.5' 60.0' 171.5' 171.5' 44.8' 171.5' 44.7' 288.7' 335.5' 235.2' 254.7' 85.8' 288.7' 335.5' 235.2' 254.7' 85.8' 288.7' 335.5' 235.2' 254.7' 85.8' 288.7' 335.5' 235.2' 254.7' 85.8' 288.7' 335.5' 235.2' 254.7' 85.8' 288.7' 335.5' 235.2' 254.7' 85.8' 288.7' 335.5' 235.2' 254.7' 85.8' 288.7' 335.5' 235.2' 254.7' 85.8' 288.7' 335.5' 235.2' 254.7' 85.8' 288.7' 335.5' 235.2' 254.7' 85.8' 288.7' 335.5' 235.2' 254.7' 85.8' 288.7' 335.5' 235.2' 254.7' 85.8' 288.7' 335.5' 235.2' 254.7' 85.8' 288.7' 335.5' 235.2' 254.7' 85.8' 288.7' 335.5' 235.2' 254.7' 85.8' 288.7' 335.5' 235.2' 254.7' 85.8' 288.7' 335.5' 235.2' 254.7' 85.8' 288.7' 335.5' 235.2' 254.7' 85.8' 288.7' 335.5' 235.2' 254.7' 85.8' 288.7' 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112.5'150.0' 112.5'150.0' 112.5'150.0' 112.5'150.0' 112.5'150.0' 112.5' 89.7' 60.0'89.7' 60.0' 125.0' 54.0' 125.0' 54.0' 125.0' 54.0' 125.0' 54.0' 66.5' 54.0' 66.5' 54.0' 150.2' 54.0' 150.0' 54.0' 37.5' 75.0' 37.5' 75.0'37.5' 75.0' 37.5' 75.0' 75.0' 37.5'75.0' 37.5' 75.0' 37.5' 75.0' 37.5' 37.5' 75.0' 37.5' 75.0' 69.5' 108.0' 69.5' 108.0' 69.5' 108.0' 69.5' 108.0' 69.5' 108.0' 69.5' 108.0' 69.5' 108.0' 69.5' 108.0' 69.5' 108.0' 69.5' 108.0' 69.5' 108.0' 69.5' 108.0' 69.5' 108.0' 69.5' 108.0' 6.0' 139.5' 48.7' 164.5' 42.7' 25.0' 48.7' 164.5' 48.7' 164.5' 48.7' 164.5' 48.7' 164.5' 112.5' 50.0' 112.5' 50.0' 50.0' 112.5' 50.0' 112.5' 50.0' 112.5' 50.0' 112.5' 65.0' 100.0' 65.0' 100.0' 85.0' 150.0' 85.0' 150.0'50.0' 150.0' 50.0' 150.0'100.0' 150.0' 150.0' 50.0' 150.0' 120.0' 48.7' 112.5' .3' 52.0'49.2' 164.5' 45.0' 112.5' 54.0'44.3' 54.0' .3' 112.5' 50.0' 52.5' 2.0' 60.0'48.0' 112.5' 37.5' 75.0' 39.5' 60.0' 2.0'15.0' 120.0'120.0'120.0'120.0'120.0'120.0'120.0'120.0'120.0' 55.0' 114.5' 50.4' 114.6' 250.0' 250.0' 100.0' 65.0' 50.0'65.0' 50.0' 50.0' 106.0' 50.0' 106.0' 50.0' 106.0' 50.0' 106.0' 50.0' 106.0' 50.0' 106.0' 112.5' 50.0' 112.5' 100.0'112.5' 75.0' 112.5' 125.0' 77.6' 77.6' 109.3' 74.0' 74.0' 54.0' 54.0' 37.5' 124 129 144 147 159 171 235 251 303 307 318 330 130 421 425 427 180 219 235 252 306 312 Bldg AA Bldg BB Bldg C Bldg CC Bldg DD Bldg F Bldg G Bldg L 180 Bldg W 205 252 270 271 101 141 143 325 Bldg A 120 121 129 131 139 207 221 223 215-233 251 432 436 101 225-233 228- 234 210- 216 250-254 209-215 223- 229 247-259 251- 257 241- 247 272-280 311-317 240- 248 202- 216 335 101 211 213 201 103 315 165 210- 216 181 411 180 247 171 177 270 183 309 305 301 316 308 202 206 323 317 301 346344 324 238 245 261 244242 234 238 228226 205 213 225 231 233 245 249 232230220 262 319 220 216 212 210 208 302 192 329 129127 131 342 344 334 320 324 301 151 345 333 329 312 163 234 240 244 250 281 240 285 267 277 259 251 150 400 112 160 149 115 119 235 217 215 201 148 210 212 115 291 27 25 401 95 186 190 188 192 125 127 147 207201 164 170 202 172 116 132 158 170172 180 151 235-243 219 222 220 224 222 121 152 150 206 423 247 275 258 167 165 121 171A 282-290 155 99 124A 307A 306A 312A 180A 167 169 171 355 365 111 143 145 262 316 Bldg FF QUARRY ROAD QUARRY ROAD EL CAMINO REAL PALO ALTO AVENUE EL CAMINO REAL EL CAMINO REAL EL CAMINO REAL PALO ALTO AVENUE HAWTHORNE AVENUE EMERSON STREET RAMONA STREET EMERSON STREET HAWTHORNE AVENUE HIGH STREET EVERETT AVENUE EVERETT AVENUE HIGH STREET ALMA STREET ALMA STREET ALMA STREET LYTTON AVENUE EL CAMINO REAL QUARRY ROAD ALMA STREET EMERSON STREET HIGH STREET RAMONA STREET U N I V E R S I T Y C I R C L E MITCHELL LANE LANE 15 EAST SAND HILL ROAD PEAR LANE SWEET OLIVE WAY EL CAMINO REAL SHO P P I N G C EN T ER WAY PISTACHE PLACE PENINSULA CORRIDOR JOINT POWERS BOARD PENINSULA CORRIDOR JOINT POWERS BOARD PENINSULA CORRIDOR JOINT POWERS BOARD PALO ROAD RM-30 RM-30 PC-3429 PC-5158 RMD (NP) CD-N (P) CD-C (P) PC-3111 CD-C (GF)(P) PC-4262 PC-3102 PC-4182 RM-20 CD-N (P) PC-4374 RM-30 PC-4243 RMD (NP) PC-3266 RM-30 El Camino Park El Camino Park Stanford Shopping Center El Palo Alto Park Tract No. 5447 El Palo Alto Park Lot Q This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Railroad Zone Districts Tree Project Project Building 0' 281' Attachment A Location Map 400 Mitchell Lane CITY OF PALO ALTO INCORP O RATED CALIFORNIA P a l o A l t oT h e C i t y o f APRIL 16 1894 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2016 City of Palo Alto sswitze, 2025-08-11 16:11:50 (\\cc-maps\Encompass\Admin\Personal\Planning.mdb) Item 9 Attachment A - Location Map        Item 9: Staff Report Pg. 7  Packet Pg. 294 of 445  Page 1 of 8 ACTION NO. 2025-____ On September 8, 2025, the Council of the City of Palo Alto held a duly noticed public hearing and, after considering all of the evidence presented, approved the Conditional Use Permit application for a Private University educational use in the PF Zoning District, making the following findings, determination and declarations: SECTION 1. Background. A. On January 8, 2025, Stanford University filed and application for a Conditional Use Permit (CUP) to allow for a Private University educational use within an existing building at 400 Mitchell Lane (“The Project”). B. In accordance with 18.16.040, a CUP is required for a Private University educational use within the PF zoning district. C. On June 9, 2025, The Director of Planning and Development Services tentatively approved the CUP in accordance with, and subject to the provisions of, City of Palo Alto Municipal Code (PAMC) Chapter 18.76. D. On July 17, 2025, within the 14-day request for hearing period following the tentative decision, a request for hearing was filed pursuant to PAMC Section 18.77.060. E. Following the hearing request, on July 30, 2025, the Planning and Transportation Commission held a duly noticed public hearing, at which evidence was presented and all persons were afforded an opportunity to be heard. The Commission recommended approval of the proposed project to City Council. F. On September 8, 2025, the City Council held a duly noticed public hearing on the CUP application, at which evidence was presented and all persons were afforded an opportunity to be heard in accordance with the Palo Alto Municipal Code and the Council’s Policies and Procedures. SECTION 2. Environmental Review. The City, acting as the lead agency for the project, has determined that the project is exempt from the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15301 (Existing Facilities), which provides exemptions for existing facilities. SECTION 3. Conditional Use Permit Findings Conditional Use Permit approval is based on the findings indicated under PAMC Section 18.76.010: 1.The proposed use, at the proposed location, will not be detrimental or injurious to property or improvements in the vicinity, and will not be detrimental to the public health, safety, general Item 9 Attachment B - Draft Record of Land Use Action        Item 9: Staff Report Pg. 8  Packet Pg. 295 of 445  Page 2 of 8 welfare, or convenience. Stanford University will utilize the existing building for field education services with working and training spaces and host a portion of the Geoscience Specimen Collection. The building will provide the space needed for geological and paleo specimen management, staging, and preparation. The site’s close proximity to a high-quality public transit facility, Caltrain, and other public transportation methods will facilitate student participation, provide resources, and promote sustainable scientific practices. The project does not propose any expansion of the existing building and the scope of work is limited to interior and utility improvements. The project, as conditioned, complies with applicable building and fire requirements for any proposed tenant improvements and for use and occupancy. For these reasons the proposed Private University educational use will not be conducted in a manner that will be injurious to property or improvements in the vicinity or that could be detrimental to the public health, safety, and general welfare, or convenience. 2.The proposed use will be located and conducted in a manner in accord with the Palo Alto Comprehensive Plan and the purposes of the Zoning Ordinance. The subject property has a land use designation of Public Park as it is located on the same parcel as El Camino Park. This land use designation is defined as “Open lands whose primary purpose is public access for active recreation and whose character is essentially urban.” The existing building is situated on a 0.551 subleased area of the larger parcel and is not part of the park dedication. The proposed use of the existing building is compatible with the land use designation as it would not prevent or impede current El Camino Park services. The subject building was previously used by the American Red Cross and Urban Ministry of Palo Alto and has since been vacant. The site is zoned Public Facilities (PF). This zoning allows Private University educational uses as a conditionally permitted use. In 1973, The City of Palo Alto and Stanford University entered into a Williamson Act Contract that included the subject property. Uses permitted by the regulations in the PF zoning district are listed as a compatible use with the governing Williamson Act Contract. Therefore, approval of the project for use of an existing building on the property that is consistent with the PF Zone District’s permitted uses would not result in any conflicts with the existing Willamson Act Contract. The CUP allows the City to review the proposed use at this location to assure that it maintains operations that are compatible with the zoning district and other existing neighborhood uses. As conditioned, the proposed use will be located and conducted in a manner in accord with the Palo Alto Comprehensive Plan and the purposes of the Zoning Ordinance. SECTION 4. Conditions of Approval. Planning Division 1. CONFORMANCE WITH PLANS. Construction and development shall conform to the approved plans entitled, " C3_400 Mitchell Lane_Plan,” uploaded to the Palo Alto Online Permitting Services Citizen Portal on April 14, 2025, as modified by these conditions of approval. 2. USE AND OCCUPANCY PERMIT. A valid Use and Occupancy permit issued by the Building Item 9 Attachment B - Draft Record of Land Use Action        Item 9: Staff Report Pg. 9  Packet Pg. 296 of 445  Page 4 of 8 Department is required for the Stanford University Doerr School. 3. BUILIDNG PERMIT. A copy of this approval letter shall be printed on any drawings submitted for building permit related to this use. 4. HOURS OF OPERATION. The use is allowed to operate from 6:00 a.m. to 10:00 p.m. per Zoning Code Sections 18.42.040, 18.42.090. All clean up or set up activities shall be conducted within these approved business hours. 5. EVENTS. The Private Educational Use is limited to twelve (12) special events in a calendar year. Any special event more than the allotted twelve (12) requires approval of a Temporary Use Permit, which must be filed with the City no less than 45 days from the date of the event. The Temporary Use Permit may include conditions to address traffic, circulation, parking, noise, litter, event timing, duration or other conditions deemed appropriate to mitigate potential nuisances to area residents, nearby businesses and institutions, and traffic. 6. CAPACITY. The Private Educational Use shall not exceed the maximum occupant load as provided by the building’s occupancy classification in the California Building Standards Code (Cal. Code Regs. Title 24). 7. GROSS FLOOR AREA, LOT COVERAGE AND PARKING. This approval does not include any changes/increase in gross floor area, lot coverage, or parking on the property. The tenant shall manage the use such that the parking demand of the use does not exceed the parking spaces allocated to the property through the Parking Assessment District and consistent with the project description. 8. SIGNAGE. This approval does not include new signage or adjustments to existing signage. 9. EXTERIOR ALTERATIONS. Any exterior alterations would require a separate Architectural Review application. 10. PROPERTY MAINTENANCE. The operator shall keep the subject property free of litter associated with the business operation. 11. INTENSIFICATION. Any intensification of use shall require an amendment to the Conditional Use Permit and any other entitlements as specified in the Palo Alto Municipal Code. 12. NUISANCES AND NOISE. The business shall be operated in a manner to protect any nearby residential properties from excessive noise, odors, lighting, or other nuisances from any sources during the business hours. Noise levels emanating from the restaurant use shall not exceed the maximum level established in the PAMC Chapter 9.10. 13. EXPIRATION. The project approval shall be valid for a period of one year from the original date of approval. In the event a building permit(s) is not secured for the project, or the use does not Item 9 Attachment B - Draft Record of Land Use Action        Item 9: Staff Report Pg. 10  Packet Pg. 297 of 445  Page 5 of 8 commence within the time limit specified above, the approval shall expire and be of no further force or effect. If a use authorized by a permit or approval is discontinued for a period of twelve months, the permit or approval will no longer be in effect. If a building or structure that is subject to a permit or approval is destroyed or demolished, the permit or approval will no longer be in effect. 14. REVOCATION OR MODIFICATION OF APPROVALS. The director may issue a notice of noncompliance for any failure to comply with any condition of this permit approval, or when a use conducted pursuant to a Conditional Use Permit is being conducted in a manner detrimental to the public health, safety, and welfare. 15. 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. Building Division 16. As part of the Use and Occupancy permit submittal and/or as part of building permit submittal for a tenant improvement, include the furniture layout with exiting path, occupants, exit sign/path clearly shown. 17. Submit tenant improvement plans as part of building permit submittal. Refer to the following submittal checklist for additional information and submittal requirements. https://www.cityofpaloalto.org/files/assets/public/v/6/development-services/building- division/checklists/simplified/c8-tenant-improvement-submittal-checklist_1.16.2025.pdf Utilities Department The following comments are required to 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.: FOR BUILDING PERMIT (WGW Utility Engineering) 18. The applicant shall submit a completed water-gas-wastewater service connection application - load sheet for the City of Palo Alto Utilities. The applicant must provide all the information requested for utility service demands (water in fixture units/g.p.m., gas in b.t.u.h, and sewer in fixture units/g.p.d.). The applicant shall provide the existing (prior) loads, the new loads, and the combined/total loads (the new loads plus any existing loads to remain). 19. 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 Item 9 Attachment B - Draft Record of Land Use Action        Item 9: Staff Report Pg. 11  Packet Pg. 298 of 445  Page 6 of 8 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, electric and communication duct banks. Existing duct banks need to be daylighted by potholing to the bottom of the duct bank 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. 20. 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). 21. 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. 22. An approved reduced pressure principle assembly (RPPA backflow preventer device) is required for all existing and new water connections from Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive. The RPPA shall be installed on the owner's property and directly behind the water meter within 5 feet of the property line. RPPA’s for domestic service shall be lead free. Show the location of the RPPA on the plans. 23. 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. 24. 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. 25. 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. 26. If a new water service line installation for fire system usage is required. Show the location of the new water service on the plans. The applicant shall provide to the engineering department a copy of the plans for fire system including all fire department's requirements. 27. Each unit or building shall have its own water meter and gas meter shown on the plans. Each parcel shall have its own water and gas service and sewer lateral connection shown on the plans. 28. A sewer lateral per lot is required. Show the location of the new sewer lateral on the plans. A Item 9 Attachment B - Draft Record of Land Use Action        Item 9: Staff Report Pg. 12  Packet Pg. 299 of 445  Page 7 of 8 profile of the sewer lateral is required showing any possible conflicts with storm, electric/communications ductbanks or other utilities. 29. All existing water, and gas. and wastewater services/laterals that will not be reused shall be abandoned at the main per the latest WGW utilities standards. 30. Utility vaults, transformers, utility cabinets, concrete bases, or other structures cannot be placed over existing water, gas, or wastewater mains/services. Maintain 1’ horizontal clear separation from the vault/cabinet/concrete base to existing utilities as found in the field. If there is a conflict with existing utilities, Cabinets/vaults/bases shall be relocated from the plan location as needed to meet field conditions. 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. 31. The applicant shall provide to the WGW Utility Engineering department a copy of the plans for fire system including all fire department's requirements prior to the actual service installation. 32. All utility installations shall be in accordance with the City of Palo Alto utility standards for water, gas, & wastewater. Zero Waste Division 33. Provide all three types of containers (recycle, compost, and landfill) as required by PAMC 5.20.108 and SB 1383 in the structure, including in the training room. If the scope of work involves installing internal and/or external refuse bins, then the following requirements apply. Refer to Palo Alto Municipal Code 5.20.108 - Requirements for owners or managers of multifamily properties and commercial premises. Any location where refuse bins will be installed shall have three bins - recycle (blue container), compost (green container), and garbage (black container). Show on the plans where the bins will be placed. The three types of refuse bins must be placed right next to each other. Provide cut sheets for the types of refuse bins (recycle, compost, and landfill) that will be used, any related millwork and colored signage. Locations where refuse bins may be located include common area such as entrances, lobbies, conference rooms, back of the house kitchen, cafés, breakrooms, and dining areas (if applicable). The only exceptions are restrooms, copy areas, and mother’s room. a. Restrooms must have a green compost container for paper towels and an optional black landfill container if applicable. For wall mounted bins, signage must be placed on the bin. b. Copy areas and mail areas must have either a recycle bin only or all three refuse receptacles (green compost, blue recycle, and black landfill container). c. Mother’s room must minimally have a green compost container and black landfill container. d. Laboratory sinks need at least a compost container. A recycling container and a landfill container may also be required depending on waste generated in the lab. Item 9 Attachment B - Draft Record of Land Use Action        Item 9: Staff Report Pg. 13  Packet Pg. 300 of 445  Page 8 of 8 34. If refuse bins will be placed inside a cabinet, then provide cut-sheets for the millwork. The front of the cabinet doors shall have a minimum of four inches in height worth of color-coding, extending the full width of the cabinet door. If there are openings on top of the millwork then the holes need be colored. Signage must also be provided on the containers and on front of the cabinet doors. 35. Signage must be color coded with photos or illustrations of commonly discarded items that are acceptable to place into the bin and words or text of items which are not acceptable to be placed into the bin. 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. Fire Department 36. Early detection fire alarm system shall be required for the proposed use. This shall be incorporated as part of the Use and Occupancy permit submittal and/or as part of building permit submittal for a tenant improvement. SECTION 5. Term of Approval. 1. Conditional Use Permit. The project approval shall be valid for a period of one year from the original date of approval. In the event the use does not commence within the time limit specified above, the approval shall expire and be of no further force or effect. Additionally, A Use Permit that has not been used for a period of one (1) year or more shall become null and void (PAMC 18.77.100). // // // // // // Item 9 Attachment B - Draft Record of Land Use Action        Item 9: Staff Report Pg. 14  Packet Pg. 301 of 445  Page 9 of 8 INTRODUCED: September 8, 2025 Item 9 Attachment B - Draft Record of Land Use Action        Item 9: Staff Report Pg. 15  Packet Pg. 302 of 445  Attachments: Findings and Conditions of Approval June 9, 2025 The Board of Trustees of the Leland Stanford Junior University 415 Broadway St, 3rd Floor MC 8873 Redwood City, CA 94063 Subject: 400 Mitchell Lane (25PLN-00006) Conditional Use Permit for Private Educational Use The application referenced above has been conditionally approved by the Director of Planning and Development Services. The approval was granted pursuant to Palo Alto Municipal Code (PAMC) Section 18.77. This determination is based on the review of all information contained within the project file, all public comments received, and the review of the proposal in comparison to applicable zoning and municipal code requirements. PROJECT DESCRIPTION: Request for a Conditional Use Permit to allow for a Private Educational use within an existing building at 400 Mitchell Lane. Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act (CEQA) in Accordance with CEQA Guidelines Section 15301 (Existing Facilities). Zone District: PF. This Conditional Use Permit is granted in accordance with and subject to the provisions of Chapter 18.76 of the City of Palo Alto Municipal Code. This Director’s decision shall become final fourteen (14) calendar days from the postmark date of this mailing (or on the next business day if it falls on a weekend or holiday) unless a request for hearing is filed pursuant to PAMC Section 18.77.060. The request for hearing shall be in writing and submitted to the Planning Division, prior to the end of the business day of the fourteenth day. If a hearing is not requested the Director’s decision will become final. A Conditional Use Permit that has not been used for any period of one (1) year or more shall become null and void (PAMC 18.77.100). The time period to start the proposed use may be extended once for an additional year by the Director of Planning. Should you have any questions regarding the Director’s decision, please do not hesitate to contact the project planner, Steven Switzer, by email, steven.switzer@PaloAlto.gov or call, (650) 329-2321. Sincerely, Steven Switzer Project Planner Docusign Envelope ID: EFC9E493-D4F3-4C97-B647-A8989D5D8328 Item 9 Attachment C - June 9, 2025, Tentative Approval Letter        Item 9: Staff Report Pg. 16  Packet Pg. 303 of 445  City of Palo Alto Page 2 of 7 25PLN-00006 CONDITIONAL USE PERMIT FINDINGS Conditional Use Permit approval is based on the findings indicated under PAMC Section 18.76.010 and is subject to the Conditions of Approval listed below: 1. The proposed use, at the proposed location, will not be detrimental or injurious to property or improvements in the vicinity, and will not be detrimental to the public health, safety, general welfare, or convenience. Stanford University will utilize the existing building for field education services with working and training spaces and host a portion of the Geoscience Specimen Collection. The building will provide the space needed for geological and paleo specimen management, staging, and preparation. The site’s close proximity to a high-quality public transit facility, Caltrain, and other public transportation methods will facilitate student participation, provide resources, and promote sustainable scientific practices. The project does not propose any expansion of the existing building and the scope of work is limited to interior and utility improvements. The project, as conditioned, complies with applicable building and fire requirements for any proposed tenant improvements and for use and occupancy. For these reasons the proposed Private Educational use will not be conducted in a manner that will be injurious to property or improvements in the vicinity or that could be detrimental to the public health, safety, and general welfare, or convenience. 2. The proposed use will be located and conducted in a manner in accord with the Palo Alto Comprehensive Plan and the purposes of the Zoning Ordinance. The subject property has a land use designation of Public Park as it is located on the same parcel as El Camino Park. This land use designation is defined as “Open lands whose primary purpose is public access for active recreation and whose character is essentially urban.” The existing building existed prior to development of the park on this same parcel and the proposed use is compatible with this land use designation. The site is zoned Public Facilities (PF). This zoning allows Private Educational uses as a conditionally permitted use. In 1973, The City of Palo Alto and Stanford University entered into a Williamson Act Contract that included the subject property. Uses permitted by the regulations in the PF zoning district are listed as a compatible use with the governing Williamson Act Contract. Therefore, approval of the project for use of an existing building on the property that is consistent with the PF Zone District’s permitted uses would not result in any conflicts with the existing Willamson Act Contract. The CUP allows the City to review the proposed use at this location to assure that it maintains operations that are compatible with the zoning district and other existing neighborhood uses. As conditioned, the proposed use will be located and conducted in a manner in accord with the Palo Alto Comprehensive Plan and the purposes of the Zoning Ordinance. Docusign Envelope ID: EFC9E493-D4F3-4C97-B647-A8989D5D8328 Item 9 Attachment C - June 9, 2025, Tentative Approval Letter        Item 9: Staff Report Pg. 17  Packet Pg. 304 of 445  City of Palo Alto Page 3 of 7 25PLN-00006 CONDITIONS OF APPROVAL Planning 1. CONFORMANCE WITH PLANS. Construction and development shall conform to the approved plans entitled, " C3_400 Mitchell Lane_Plan,” uploaded to the Palo Alto Online Permitting Services Citizen Portal on April 14, 2025, as modified by these conditions of approval. 2. USE AND OCCUPANCY PERMIT. A valid Use and Occupancy permit issued by the Building Department is required for the Stanford University Doerr School. 3. BUILIDNG PERMIT. A copy of this approval letter shall be printed on any drawings submitted for building permit related to this use. 4. HOURS OF OPERATION. The use is allowed to operate from 6:00 a.m. to 10:00 p.m. per Zoning Code Sections 18.42.040, 18.42.090. All clean up or set up activities shall be conducted within these approved business hours. 5. EVENTS. The Private Educational Use is limited to twelve (12) special events in a calendar year. Any special event more than the allotted twelve (12) requires approval of a Temporary Use Permit, which must be filed with the City no less than 45 days from the date of the event. The Temporary Use Permit may include conditions to address traffic, circulation, parking, noise, litter, event timing, duration or other conditions deemed appropriate to mitigate potential nuisances to area residents, nearby businesses and institutions, and traffic. 6. CAPACITY. The Private Educational Use shall not exceed the maximum occupant load as provided by the building’s occupancy classification in the California Building Standards Code (Cal. Code Regs. Title 24). 7. GROSS FLOOR AREA, LOT COVERAGE AND PARKING. This approval does not include any changes/increase in gross floor area, lot coverage, or parking on the property. The tenant shall manage the use such that the parking demand of the use does not exceed the parking spaces allocated to the property through the Parking Assessment District and consistent with the project description. 8. SIGNAGE. This approval does not include new signage or adjustments to existing signage. 9. EXTERIOR ALTERATIONS. Any exterior alterations would require a separate Architectural Review application. 10. PROPERTY MAINTENANCE. The operator shall keep the subject property free of litter associated with the business operation. 11. INTENSIFICATION. Any intensification of use shall require an amendment to the Conditional Use Permit and any other entitlements as specified in the Palo Alto Municipal Code. Docusign Envelope ID: EFC9E493-D4F3-4C97-B647-A8989D5D8328 Item 9 Attachment C - June 9, 2025, Tentative Approval Letter        Item 9: Staff Report Pg. 18  Packet Pg. 305 of 445  City of Palo Alto Page 4 of 7 25PLN-00006 12. NUISANCES AND NOISE. The business shall be operated in a manner to protect any nearby residential properties from excessive noise, odors, lighting, or other nuisances from any sources during the business hours. Noise levels emanating from the restaurant use shall not exceed the maximum level established in the PAMC Chapter 9.10. 13. EXPIRATION. The project approval shall be valid for a period of one year from the original date of approval. In the event a building permit(s) is not secured for the project, or the use does not commence within the time limit specified above, the approval shall expire and be of no further force or effect. 14. REVOCATION OR MODIFICATION OF APPROVALS. The director may issue a notice of noncompliance for any failure to comply with any condition of this permit approval, or when a use conducted pursuant to a Conditional Use Permit is being conducted in a manner detrimental to the public health, safety, and welfare. 15. 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. Building Department 16. As part of the Use and Occupancy permit submittal and/or as part of building permit submittal for a tenant improvement, include the furniture layout with exiting path, occupants, exit sign/path clearly shown. 17. Submit tenant improvement plans as part of building permit submittal. Refer to the following submittal checklist for additional information and submittal requirements. https://www.cityofpaloalto.org/files/assets/public/v/6/development-services/building- division/checklists/simplified/c8-tenant-improvement-submittal-checklist_1.16.2025.pdf Utilities Department The following comments are required to 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.: PRIOR TO ISSUANCE OF DEMOLITION PERMIT (if required) 18. The applicant shall submit a request to disconnect utility services and remove meters. The utilities demo is to be processed within 10 working days after receipt of the request. The Docusign Envelope ID: EFC9E493-D4F3-4C97-B647-A8989D5D8328 Item 9 Attachment C - June 9, 2025, Tentative Approval Letter        Item 9: Staff Report Pg. 19  Packet Pg. 306 of 445  City of Palo Alto Page 5 of 7 25PLN-00006 demolition permit will be issued by the building inspection division after all utility services and/or meters have been disconnected and removed. FOR BUILDING PERMIT (WGW Utility Engineering) 19. The applicant shall submit a completed water-gas-wastewater service connection application - load sheet for the City of Palo Alto Utilities. The applicant must provide all the information requested for utility service demands (water in fixture units/g.p.m., gas in b.t.u.h, and sewer in fixture units/g.p.d.). The applicant shall provide the existing (prior) loads, the new loads, and the combined/total loads (the new loads plus any existing loads to remain). 20. 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, electric and communication duct banks. Existing duct banks need to be daylighted by potholing to the bottom of the duct bank 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. 21. 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). 22. 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. 23. An approved reduced pressure principle assembly (RPPA backflow preventer device) is required for all existing and new water connections from Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive. The RPPA shall be installed on the owner's property and directly behind the water meter within 5 feet of the property line. RPPA’s for domestic service shall be lead free. Show the location of the RPPA on the plans. 24. 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. Docusign Envelope ID: EFC9E493-D4F3-4C97-B647-A8989D5D8328 Item 9 Attachment C - June 9, 2025, Tentative Approval Letter        Item 9: Staff Report Pg. 20  Packet Pg. 307 of 445  City of Palo Alto Page 6 of 7 25PLN-00006 25. 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. 26. 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. 27. If a new water service line installation for fire system usage is required. Show the location of the new water service on the plans. The applicant shall provide to the engineering department a copy of the plans for fire system including all fire department's requirements. 28. Each unit or building shall have its own water meter and gas meter shown on the plans. Each parcel shall have its own water and gas service and sewer lateral connection shown on the plans. 29. A sewer lateral per lot is required. Show the location of the new sewer lateral on the plans. A profile of the sewer lateral is required showing any possible conflicts with storm, electric/communications ductbanks or other utilities. 30. All existing water, and gas. and wastewater services/laterals that will not be reused shall be abandoned at the main per the latest WGW utilities standards. 31. Utility vaults, transformers, utility cabinets, concrete bases, or other structures cannot be placed over existing water, gas, or wastewater mains/services. Maintain 1’ horizontal clear separation from the vault/cabinet/concrete base to existing utilities as found in the field. If there is a conflict with existing utilities, Cabinets/vaults/bases shall be relocated from the plan location as needed to meet field conditions. 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. 32. The applicant shall provide to the WGW Utility Engineering department a copy of the plans for fire system including all fire department's requirements prior to the actual service installation. 33. All utility installations shall be in accordance with the City of Palo Alto utility standards for water, gas, & wastewater. Zero Waste Docusign Envelope ID: EFC9E493-D4F3-4C97-B647-A8989D5D8328 Item 9 Attachment C - June 9, 2025, Tentative Approval Letter        Item 9: Staff Report Pg. 21  Packet Pg. 308 of 445  City of Palo Alto Page 7 of 7 25PLN-00006 34. Provide all three types of containers (recycle, compost, and landfill) as required by PAMC 5.20.108 and SB 1383 in the structure, including in the training room. If the scope of work involves installing internal and/or external refuse bins, then the following requirements apply. Refer to Palo Alto Municipal Code 5.20.108 - Requirements for owners or managers of multifamily properties and commercial premises. Any location where refuse bins will be installed shall have three bins - recycle (blue container), compost (green container), and garbage (black container). Show on the plans where the bins will be placed. The three types of refuse bins must be placed right next to each other. Provide cut sheets for the types of refuse bins (recycle, compost, and landfill) that will be used, any related millwork and colored signage. Locations where refuse bins may be located include common area such as entrances, lobbies, conference rooms, back of the house kitchen, cafés, breakrooms, and dining areas (if applicable). The only exceptions are restrooms, copy areas, and mother’s room. a. Restrooms must have a green compost container for paper towels and an optional black landfill container if applicable. For wall mounted bins, signage must be placed on the bin. b. Copy areas and mail areas must have either a recycle bin only or all three refuse receptacles (green compost, blue recycle, and black landfill container). c. Mother’s room must minimally have a green compost container and black landfill container. d. Laboratory sinks need at least a compost container. A recycling container and a landfill container may also be required depending on waste generated in the lab. 35. If refuse bins will be placed inside a cabinet, then provide cut-sheets for the millwork. The front of the cabinet doors shall have a minimum of four inches in height worth of color- coding, extending the full width of the cabinet door. If there are openings on top of the millwork then the holes need be colored. Signage must also be provided on the containers and on front of the cabinet doors. 36. Signage must be color coded with photos or illustrations of commonly discarded items that are acceptable to place into the bin and words or text of items which are not acceptable to be placed into the bin. 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. Fire Department 37. Early detection fire alarm system shall be required for the proposed use. This shall be incorporated as part of the Use and Occupancy permit submittal and/or as part of building permit submittal for a tenant improvement. Docusign Envelope ID: EFC9E493-D4F3-4C97-B647-A8989D5D8328 Item 9 Attachment C - June 9, 2025, Tentative Approval Letter        Item 9: Staff Report Pg. 22  Packet Pg. 309 of 445  Item 9 Attachment D - Request for Hearing Letter        Item 9: Staff Report Pg. 23  Packet Pg. 310 of 445  From:Raybould, Claire To:herb Cc:Switzer, Steven; Armer, Jennifer; Lait, Jonathan; City Mgr; Perez-Ibardolasa, Val Subject:RE: 400 Mitchell Lane [25PLN-00131] Date:Tuesday, June 17, 2025 12:40:07 PM Attachments:image003.pngimage002.png Good morning Herb, Thank you for your e-mail. Although these two applications (25PLN-00131 and 25PLN-00006) happen to be proposed at the same property, these are two separate and distinct projects. Both projects have independent utility, meaning that approval of either is unrelated to and not dependent on the other. One is a request for a hazardous tree removal at the property, which is allowed if the required evidence is provided to support the conclusion that the tree is hazardous and with replacement planting consistent with the tree technical manual. The tree removal permit was recently submitted and is still under review. The second project, which the Director tentatively approved, is a conditional use permit for a change in use within the existing structure. Modifications to the exterior are not planned or necessary to accommodate the change in use. Therefore, removal of the tree is not a result of, or in any way related to, the change in use. Processing these separately or as one application would not change the finding that the project or projects are exempt from CEQA in accordance with CEQA Guidelines Section 15301. Accordingly, processing these applications separately does not constitute piecemealing under CEQA. If you would like to discuss further please let me know. I have some availability at 2pm today and I’m happy to give you a call to discuss. Regards, Claire Claire Raybould, AICP Manager, Current Planning Planning and Development Services Department (650) 329-2116 | Claire.Raybould@paloalto.gov www.cityofpaloalto.org Parcel Report | Palo Alto Zoning Code | Online Permitting System | Planning Forms & Applications | Planning Applications Mapped From: herb <herb_borock@hotmail.com> Sent: Monday, June 16, 2025 1:42 PM To: Perez-Ibardolasa, Val <Val.Perez-Ibardolasa@paloalto.gov> Item 9 Attachment E - Email Correspondence Regarding CEQA Compliance        Item 9: Staff Report Pg. 24  Packet Pg. 311 of 445  Cc: Switzer, Steven <Steven.Switzer@paloalto.gov>; Raybould, Claire <Claire.Raybould@paloalto.gov>; Armer, Jennifer <Jennifer.Armer@paloalto.gov>; Lait, Jonathan <Jonathan.Lait@paloalto.gov>; Council, City <city.council@PaloAlto.gov>; Clerk, City <City.Clerk@PaloAlto.gov> Subject: 400 Mitchell Lane [25PLN-00131] CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. 400 MITCHELL LANE [25PLN-00131] June 16, 2025 The application for the removal of two trees in the central courtyard of the building at 400 Mitchell Lane (Application No. 25PLN-00131) is a segment of the same California Environmental Quality Act (CEQA) project as the application f ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ! This message could be suspicious Similar name as someone in your company.Some Recipients have never replied to this person.This is a personal email address. Mark Safe Report CGBANNERINDICATOR400 MITCHELL LANE [25PLN-00131] June 16, 2025 The application for the removal of two trees in the centralcourtyard of the building at 400 Mitchell Lane (Application No.25PLN-00131) is a segment of the same California EnvironmentalQuality Act (CEQA) project as the application for a ConditionalUse Permit at the same address (Application No. 25PLN-00006). CEQA regulations prohibit segmenting the review and approval ofeach segment separately. CEQA Regulation 15378 says in relevant part: 15378. PROJECT (a) “Project” means the whole of an action, which has a potential for resulting in either a directphysical change in the environment, or a reasonably foreseeable indirect physical change inthe environment. (c) The term “project” refers to the activity which is being approved and which may be subjectto several discretionary approvals by governmental agencies. The term “project” does notmean each separate governmental approval. Therefore, a single environmental assessment and action arerequired for the two applications. The current segmenting of the project violates CEQA. Thank you for your consideration of these comments. Herb Borock Powered by Mimecast Item 9 Attachment E - Email Correspondence Regarding CEQA Compliance        Item 9: Staff Report Pg. 25  Packet Pg. 312 of 445  STANFORD UNIVERSITY DEPARTMENT OF PROJECT MANAGEMENT LAND, BUILDINGS AND REAL ESTATE February 27, 2025 City of Palo Alto Planning Department 250 Hamilton Avenue Palo Alto, CA 94301 Subject: Conditional Use Permit Request for Stanford Doerr School of Sustainability Facility at 400 Mitchell Lane Hello, I am writing to formally request a Conditional Use Permit (CUP) to establish a facility for the Stanford Doerr School of Sustainability (SDSS) at 400 Mitchell Lane. This property is located in the P-F Zoning District, which permits private university uses with a CUP. The proposed use of this property is integral to our mission of advancing sustainability through interdisciplinary research and education. With a large faculty and numerous departments, institutes, and programs, SDSS fosters collaboration in key areas related to Earth, climate, and society. Below are descriptions of the existing and proposed uses of the property, and information addressing how this project aligns with the necessary findings as stipulated by the City of Palo Alto. Existing and Proposed Uses: The property at 400 Mitchell Lane has an existing building that has been unoccupied for several years. It was previously used by American Red Cross and Urban Ministry of Palo Alto. Our proposal is to use this building as a facility for SDSS, which includes: Field Education SDSS enhances hands-on learning experiences for students, including various field trips and training courses. We support these activities by connecting students and instructors with necessary resources, offering a range of opportunities, both locally and abroad. This facility will include working and training space and field trip resources. Its proximity to public transportation will greatly facilitate student participation and access to necessary resources. Geoscience Specimen Collections In collaboration with faculty, SDSS manages a diverse collection of geological and paleo samples, supporting a wide range of courses. The facility will host a portion of those samples. This collection aids research and education by providing essential resources and promoting sustainable scientific practices. The facility will provide the needed space for specimen management, staging, and preparation. Item 9 Attachment F - Applicant’s Project Request Letter        Item 9: Staff Report Pg. 26  Packet Pg. 313 of 445  STANFORD UNIVERSITY DEPARTMENT OF PROJECT MANAGEMENT LAND, BUILDINGS AND REAL ESTATE Supporting Findings: 1. Public Health, Safety, General Welfare, or Convenience: The granting of this application will not be detrimental or injurious to the surrounding property or improvements. The proposed facility will repurpose an existing vacant building, thereby revitalizing the area and contributing positively to the community. Our activities will be conducted in a manner that ensures safety and convenience for both our students and nearby residents. The nature of the work, focused on sustainability and education, inherently supports public welfare by fostering environmentally responsible practices. 2. Consistency with the Palo Alto Comprehensive Plan and Title 18 (Zoning): The proposal aligns with the Palo Alto Comprehensive Plan’s emphasis on sustainable development and education. The SDSS facility will promote interdisciplinary research and learning in key areas concerning Earth, climate, and society, directly contributing to the city's goals of sustainability and knowledge advancement. Additionally, as a private university use, this project is consistent with the purposes of Title 18 (Zoning), specifically within the P-F zoning district, where such uses are permitted with a CUP. 3. Compliance with Williamson Act Contract: In 1973, the City of Palo Alto and Stanford entered into a Williamson Act Contract, which has been attached to this application for reference. This site is included in that agreement. The proposed use of the structure for the Stanford Doerr School of Sustainability is consistent with the terms of the Williamson Act Contract and does not present any conflicts. In summary, the establishment of the SDSS facility at 400 Mitchell Lane will support our mission and enhance the educational and research capabilities of our faculty and students. The project will bring life to a currently unoccupied building, integrate seamlessly with the community, and align with Palo Alto’s broader goals as outlined in the Comprehensive Plan. We respectfully request the approval of this Conditional Use Permit to move forward with our plans. Thank you for considering our application. Should you require any additional information or have further questions, please do not hesitate to contact me. Item 9 Attachment F - Applicant’s Project Request Letter        Item 9: Staff Report Pg. 27  Packet Pg. 314 of 445  STANFORD UNIVERSITY DEPARTMENT OF PROJECT MANAGEMENT LAND, BUILDINGS AND REAL ESTATE Sincerely, Stacey Yuen Project Manager Stanford University syuen23@stanford.edu 650-454-6741 Item 9 Attachment F - Applicant’s Project Request Letter        Item 9: Staff Report Pg. 28  Packet Pg. 315 of 445  Item 9 Attachment F - Applicant’s Project Request Letter        Item 9: Staff Report Pg. 29  Packet Pg. 316 of 445  Item 9 Attachment F - Applicant’s Project Request Letter        Item 9: Staff Report Pg. 30  Packet Pg. 317 of 445  Item 9 Attachment F - Applicant’s Project Request Letter        Item 9: Staff Report Pg. 31  Packet Pg. 318 of 445  Item 9 Attachment F - Applicant’s Project Request Letter        Item 9: Staff Report Pg. 32  Packet Pg. 319 of 445  Item 9 Attachment F - Applicant’s Project Request Letter        Item 9: Staff Report Pg. 33  Packet Pg. 320 of 445  Item 9 Attachment F - Applicant’s Project Request Letter        Item 9: Staff Report Pg. 34  Packet Pg. 321 of 445  Item 9 Attachment F - Applicant’s Project Request Letter        Item 9: Staff Report Pg. 35  Packet Pg. 322 of 445  Item 9 Attachment F - Applicant’s Project Request Letter        Item 9: Staff Report Pg. 36  Packet Pg. 323 of 445  In accordance with Government Code 65103.5, in addition to architectural drawings, a design professional or the owner of a copyright may submit a site plan or a massing diagram for posting online or for distribution to the public. The City of Palo Alto requires that such site plan or massing diagram be provided as a separate electronic file. If the design professional or the owner of the copyright elects not to provide a separate electronic file containing a site plan or massing diagram upon submission of architectural diagrams, they will be deemed to have granted permission for the City to share architectural drawings online and for distribution to the public. For File Number, Date Received, Fees, and Project Status please see Accela (City Database) bit.ly/PaloAltoACA For general questions, please email planner@cityofpaloalto.org Application Request Architectural Review Conditional Use Permit / Amendment Design Enhancement Exception Historic Review Home Improvement Exception Temporary Use Permit Transfer of Development Rights Property Location Address of Subject Property: ___________________________________________________________________________________________ Zone District: _____________________ Assessor’s Parcel Number: ________________________ Historic Category (if applicable): _______________ Project Description Housing Development Project as Defined by the State: Yes No ___________________________________________________________________________________________________________________ Property Owner  Name: _______________________________________________________ Email: _________________________________________ Address: _______________________________________________________ Phone 1: _________________________________________ City: ______________________________________ State: ________ Zip: __________ Phone 2: ____________________________ I hereby certify that I am the owner of record of the property described in Box #2 above and that I approve of the requested action herein. If this application(s) is subject to 100% cost recovery of planning costs, I understand that charges for staff time spent processing this application(s) will be based on the Policy and Procedures document provided to me. I understand that my initial deposit is an estimate of these charges and not a fee, and I agree to abide by the billing policy stated. Signature of Owner: Date: Applicant/Primary Contact/ Entitlement Recipient      Name: ___________________________ Address: _________________________ _________________________________ City: _____________________________ Zip Code: ______________ State: _____ Phone: ___________________________ Email: ____________________________ Name: _____________________________ Address: ___________________________ ___________________________________ City: _______________________________ Zip Code: ______________ State: _______ Phone: _____________________________ Email: ______________________________ Architect  Engineer Primary Contact If Different From Applicant     Name: _____________________________ Address: ___________________________ ___________________________________ City: _______________________________ Zip Code: ______________ State: _______ Phone: _____________________________ Email: ______________________________ Variance Zone Change Planned Community or Amendment Other: Individual Review Preliminary AR Review Council Prescreening Coordinated Development (SOFA 1) Site and Design Review Subdivision Planning Review Application Department of Planning & Development Services 250 Hamilton Avenue, Palo Alto, CA 94301 Appointments are required for all application submittals, please call (650) 329-2496 (ext. 6, option 2) or email planningintake@CityofPaloAlto.org to schedule 400 Mitchell Lane 94301 120-31-009 Tree Removal Matthew Sesody 1250 Ames Rd Milpitas 95035 CA 925-967-5063 matt.sesody@monarchlandscape.com Ramsey Shuayto rshuayto@stanford.edu 415 Broadway 3rd floor Redwood City Ca 94063 4 3/19/25Ramsey Shuayto Digitally signed by Ramsey Shuayto Date: 2025.03.19 15:10:29 -07'00' Item 9 Attachment G - Request for Tree Removal Application Letter (25PLN-00131)        Item 9: Staff Report Pg. 37  Packet Pg. 324 of 445  Revised: 7/23/22 DEPARTMENT OF PLANNING & DEVELOPMENT SERVICES POLICY AND PROCEDURES FOR APPLICATIONS SUBJECT TO COST RECOVERY Planning and Development Services, in accordance with the Municipal Fee Schedule adopted by the City Council, has instituted a program of full and partial recovery fees for processing of the following types of applications. Each of these types of applications may also require review by the Attorneys’ Office as well as the possible preparation of legal documents such as ordinances and/or resolutions, and either a deposit or fee for legal review will be collected: Appeal Costs Exceeding Appeals Filing Fee Architectural Review, Major Project Administrative Extensions and Zoning Letters Comprehensive Plan change Development Agreement and Development Agreement Annual Review Environmental Documents Legal Review for Additional Hearings Major Architectural Review Projects Major Subdivision – Tentative Map and Subdivision Final Map Mitigation Monitoring- EIR Mitigation Monitoring – MND Mills Act or Williamson Act – Establish or Withdraw Planned Community Pre-Screening Site and Design Transfers of Development Rights Williamson Act – Establish or Withdraw Wireless Applications Zone Change Our policy and procedures for recovering processing costs are as follows: A deposit in the amount indicated in the Municipal Fee Schedule will be accepted at the time theapplication is filed. If a project requires multiple entitlements, and any one of those entitlements is subject tocost recovery, as listed above, and the entitlements are being processed concurrently, then the entire processing of the project will be subject to cost recovery. An accounting of staff time charged towards the deposit will be sent to the applicant or property owner.If the amount incurred exceeds the amount of the deposit, an invoice will be generated. The bill will be sent by the City’s Administrative Services Department and shall be paid within 30 days, or legal interest will accrue. The City reserves the right to suspend application processing or delay issuance of a building permit due to nonpayment. The applicant and property owner are legally responsible for payment of all fees, regardless of whether an entitlement is granted. In the event there are significant anticipated costs for outside consultants in excess of the amount deposited, a deposit for the full cost of the consultant work will be required at the time the consultantagreement is signed plus 25% for contract administration costs. In the event changes to the project result inadditional costs, an additional deposit will be required at the time the consultant agreement is amended. Following a final decision on the application and project file closure, a final accounting will be sent,along with either a bill if actual processing costs exceeding the amount on deposit, or a refund if the deposit amount exceeds actual processing costs. The applicant or property owner applicant will be billed for all time charged to the application. Acurrent table of rates and explanation of charges is printed on the back of this form. AGREED UPON BY: Applicant/Owner Name: Signature: Date: Ramsey Shuayto 3/19/25 Item 9 Attachment G - Request for Tree Removal Application Letter (25PLN-00131)        Item 9: Staff Report Pg. 38  Packet Pg. 325 of 445  Hourly Rates for Deposit Based Fees/Contracts Positions Effective 8/19/24 Administrative Assistant $ 199.72 Administrative Associate I $ 171.31 Administrative Associate II $ 188.76 Administrative Associate III $ 202.32 Arborist $ 231.19 Assistant Director Planning and Development Services $ 446.72 Associate Engineer $ 282.49 Associate Planner $ 247.09 Building/Planning Technician $ 198.69 Business Analyst $ 288.26 Chief Planning Official $ 397.22 Chief Transportation Official $ 346.85 City Legal Counsel $ 417.82 Code Enforcement Officer $ 242.07 Code Enforcement Lead $ 268.08 Coordinator Transit Management Systems $ 244.88 Director of Planning and Development Services $ 483.96 Engineer $ 229.88 Engineering Tech III $ 169.37 Landscape Architect/Park Planner $ 255.37 Management Analyst $ 257.27 Planning Manager $ 314.41 Planner $ 258.99 Principal Planner $ 306.54 Project Engineer $ 331.22 Senior Engineer $ 272.88 Senior Management Analyst $ 298.44 Senior Planner $ 298.69 Urban Forestry Manager $ 286.04 Building - Inspections and Investigations - Unclassified $ 356.01 Building - Additional Plan Review $ 276.04 Planning - Miscellaneous Plan Check & Inspection $ 278.57 Fire - Additional Hours Over Plan Review/Inspection $ 361.16 Public Works- Miscellaneous Plan Check $ 319.31 Item 9 Attachment G - Request for Tree Removal Application Letter (25PLN-00131)        Item 9: Staff Report Pg. 39  Packet Pg. 326 of 445  Revision Date: 02/23/2023 Questions? Contact the City’s Watershed Protection Group Email: cleanbay@cityofpaloalto.org Phone: (650) 329-2122 Part 1. PROJECT INFORMATION Property Address: ___________________________ APN: _________________ Part 2. PCBs PROGRAM SCREENING CRITERIA Part 3. PCBs PROGRAM COMPLIANCE The response is “YES” to both 2(a) AND to 2(b). The project must meet Program requirements. A.Sign and date the certification statement in Part 4 before submitting this application from. B.The PCBs Applicant Package must be submitted with the Deconstruction Building Permit Application. Details may be found at cityofpaloalto.org/pcbdeconprogram. NOTE: Program requirements are considerable, and the required coordination with the Environmental Protection Agency and other agencies may take several months. It is recommended that projects conduct this step as early as possible prior to deconstruction (during the project planning process) to minimize delays. Part 4. CERTIFICATION STATEMENT I certify that the information provided in this form is, to the best of my knowledge and belief, true, accurate, and complete. I further certify that I understand my responsibility for knowing and complying with all relevant laws and regulations related to reporting, abating, handling, and disposing of PCBs material and waste. I understand there are significant penalties for submitting false information. I will retain a copy of this form and the supporting documentation for at least 5 years. Signature: Date: (Property Owner/Agent/Legal Representative) Print/Type: (Property Owner/Agent/Legal Representative Name) Signature: Date: (Consultant Completing Application Form) Print/Type: (Consultant Completing Application Form) All buildings to be deconstructed that meet BOTH criteria below must comply with Program requirements: A.The building to be deconstructed is NOT a wood-framed, single-family residential, or two- family residential (duplex). B.The building to be deconstructed was constructed or remodeled between January 1, 1950 and December 31, 1980. YES If the answer to (a) AND (b) are both “YES,” then the project must meet Program requirements. CONTINUE TO PART 3. NO If the answer to either (a) OR (b) is “NO,” then the project is exempt from PCB requirements. STOP HERE and sign the certification statement (Part 4) and submit this form with planning application materials. POLYCHLORINATED BIPHENYLS (PCBs ) IN PRIORITY BUILDING MATERIALS DECONSTRUCTION PROGRAM PLANNING APPLICABILITY FORM ALL PROJECTS MUST COMPLETE THIS WORKSHEET 3/6/26 Matthew Sesody 3/6/25 Matthew Sesody 400 Mitchell Ln 120-31-009 Item 9 Attachment G - Request for Tree Removal Application Letter (25PLN-00131)        Item 9: Staff Report Pg. 40  Packet Pg. 327 of 445  October 24, 2024 400 Mitchell Lane Palo Alto Ca 94301 2 Declining Bay Laurel Trees There are 2 declining Laurus nobilis trees that are a concern to the client and I. Observations Tree #26 has a DBH of 24” and is approximately 20- 25’with a canopy spread of 10’ on either side. There is a large cavity at the base of the tree as well as cracked and peeling bark. At the time of inspection there were fungus fruiting bodies on one of the leaders. The tree has lost 30% of its canopy at the time of inspection. Item 9 Attachment G - Request for Tree Removal Application Letter (25PLN- 00131)        Item 9: Staff Report Pg. 41  Packet Pg. 328 of 445  Tree #27 has a DBH of 22” and a height of approximately 20-25’ with a canopy spread of 10’ on either side. The tree has signs of decay at the buttress root and a old fruiting body in the same area. There are multiple leaders on this tree and at the union there is decay. I was able to clean out the union and was able to easily slip my pocket knife 3” into the bark. Summary It is my professional opinion that these 2 trees are a hazard and should be removed. The size of the decay in tree #26 is a major concern as well as the decay fruiting bodies along a main leader. Item 9 Attachment G - Request for Tree Removal Application Letter (25PLN- 00131)        Item 9: Staff Report Pg. 42  Packet Pg. 329 of 445  Please reach out with any questions. Thanks! Matthew Sesody Matthew Sesody Monarch Tree Services ISA Certified Arborist #WE-12524A Mobile: 925-967-5063 Email: Matt.Sesody@Monarchlandscape.com Item 9 Attachment G - Request for Tree Removal Application Letter (25PLN- 00131)        Item 9: Staff Report Pg. 43  Packet Pg. 330 of 445  Item 9 Attachment G - Request for Tree Removal Application Letter (25PLN- 00131)        Item 9: Staff Report Pg. 44  Packet Pg. 331 of 445  (5) Shade trees, typ.(5) QE (3) CR REMOVE FLAGPOLES AND CONCRETE BASE EXISTING SHRUBS, TYP. SHRUBS TO MATCH EXISTING ADJACENT TO BUILDING (16) AC MOVE SIGN TO EDGE OF SIDEWALK (3) CR (9) RI EXISTING SHRUBS (2) HA (11) AC MULCH (See note #2) MULCH (See note #2) (26) CA (3) SA (3) SA (6) SC 0 16 32'400 MITCHELL / PLANTING PLAN University Architect/Campus Planning & Design Scale: 1/16"=1'-0"Date: 09-19-2024 1.PROVIDE 3" LAYER OF MULCH FOR ALL NEW PLANT BEDS, MAINTAIN 4" OF CLEARANCE AROUND ALL CROWNS, STEMS AND TRUNKS OF PLANT MATERIAL TO MINIMIZE POTENTIAL DISEASES. 2.MULCH TO BE ARBOR MULCH BY LYNGSO GARDEN MATERIALS, ph: (650) 364-1730 OR PSSI (ph: 650-321-4236) IF AVAILABLE, OR APPROVED EQUAL. 3.TEST EXISTING SOILS, AMEND SOIL IN ALL PLANTING AREAS ACCORDING TO SOILS REPORT RECOMMENDATIONS. 4.INCORPORATE COMPOST AT A RATE OF AT LEAST FOUR CUBIC YARDS PER 1,000 SQUARE FEET TO A DEPTH OF SIX INCHES INTO LANDSCAPE AREA (UNLESS CONTRA-INDICATED BY A SOIL TEST). REFER TO STANFORD FDG SPECIFICATIONS. 5.IRRIGATION TO BE DESIGN BUILD. TREES SHOULD BE ON SEPARATE VALVES FROM SHRUBS, MINIMUM TWO BUBBLERS PER TREE. CONTRACTOR TO SUBMIT IRRIGATION DRAWINGS AND PARTS LISTS FOR REVIEW AND APPROVAL BY STANFORD PRIOR TO INSTALLATION. 6.PRIOR TO BEGINNING LANDSCAPE INSTALLATION, A PRELIMINARY SITE WALK SHOULD BE DONE WITH PROJECT MANAGER, LANDSCAPE CONTRACTOR, AND LANDSCAPE ARCHITECT TO IDENTIFY ANY SITE CONDITIONS NEEDING ATTENTION. 7.PROTECT EXISTING TREES FROM INJURY AND COMPACTION. HAND DIG WITHIN ROOT ZONE AND DO NOT CUT ROOTS OVER 2" DIAMETER. IF ANY ROOTS 2" DIAMETER OR LARGER ARE ENCOUNTERED DURING EXCAVATION NEAR ANY TREE, PLEASE CONTACT STANFORD PROJECT MANAGER. 8.STANFORD FDG PLANTING SPECIFICATIONS GUIDELINES AND STANFORD STANDARD PLANTING DETAILS ARE TO BE FOLLOWED. REFER TO SPECIFICATIONS DIVISION 32, SECTION 32 90 00. 9.VERIFY LOCATIONS OF UTILITIES BY CALLING USA BEFORE DIGGING. 10.REESTABLISH PROPER FINISHED GRADE PRIOR TO PLACING NEW PLANTS AND POST CONSTRUCTION. 11.PROVIDE MATCHING SPECIES AND FORMS FOR ALL HEDGE PLANTINGS. SPACE EQUALLY. DO NOT PLANT WITHIN 2' OF NEW OR EXISTING TREE. 12.CONTACT PROJECT MANAGER OR LANDSCAPE ARCHITECT IF PROBLEMS OCCUR WITH PLANT ORDERS OR FOR CONSTRUCTION DIRECTION. 13.CONTACT PROJECT MANAGER/LANDSCAPE ARCHITECT TO APPROVE ALL PLANT MATERIALS FOR VIGOR AND SPECIES BEFORE PLANTING. 14.CONTACT PROJECT MANAGER/LANDSCAPE ARCHITECT FOR REVIEW AND APPROVAL OF PLANT PLACEMENT PRIOR TO INSTALLATION. 15.IRRIGATION SYSTEM AS-BUILT PLAN, INCLUDING CONTROLLER, VALVES, LINES, AND HEADS, FOR ALL NEW PLANTINGS TO BE SUPPLIED TO STANFORD UPON PROJECT COMPLETION. 16.COORDINATE TRIMMING OF EXISTING TREES AND SHRUBS WITH CERTIFIED ARBORIST AND LANDSCAPE ARCHITECT. 17.AS PART OF FINAL COMPLETION, ALL AREAS IMPACTED BY LANDSCAPE CONSTRUCTION TO BE RESTORED TO ORIGINAL CONDITION, INCLUDING SOILS, PLANTS, IRRIGATIONS, PAVING, AND OTHERS. 18.PROVIDE 90 DAY PLANTING/IRRIGATION MAINTENANCE AND OVER ONE YEAR PLANT/TREE WARRANTY, TO BEGIN AFTER FINAL WALK THROUGH AND PROJECT ACCEPTANCE. PLANTING NOTES PLANTING LIST SHRUBS SCIENTIFIC NAME COMMON NAME SIZE SPACINGSYMBOLQTY TREES 24" Box As ShownMesa OakQuercus engelmanniiQE5 Indian Hawthorn 5 gal.36" O.C. 15 gal.As ShownRay Hatman CeonathusCeanothus 'Ray Hatman'CR6 Hoary ManzanitaArctostaphylos canescens var. canescens 5 gal.36" O.C.27 Heteromeles arbutifolia 9 Raphiolepsis indica Toyon2 AC HA RI 15 gal.As Shown Rock RoseCistus albidus 5 gal.30" O.C.26 CA Cleveland Sage 5 gal.36" O.C.6 Salvia clevelandiiSC White Sage 5 gal.36" O.C.6 Salvia alpianaSA Item 9 Attachment G - Request for Tree Removal Application Letter (25PLN-00131)        Item 9: Staff Report Pg. 45  Packet Pg. 332 of 445  8 6 1 4 ATTACHMENT H Project Plans In order to reduce paper consumption, a limited number of hard copy project plans are provided to Council 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 online: 1. Go to: https://paloalto.buildingeye.com/planning 2. Search for “400 Mitchell Ln” and open record by clicking on the blue dot. 3. Review the record details on the left side, find Application Number: 25PLN-00006, and open the “more details” option. 4. Use the “Records Info” drop down menu and select “Attachments” 5. Open the attachment named “C3_400 Mitchell Lane _Plan.pdf” and dated 07/10/2025 to review the plan set. Item 9 Attachment H - Project Plans        Item 9: Staff Report Pg. 46  Packet Pg. 333 of 445  City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Planning and Development Services Meeting Date: September 15, 2025 Report #:2509-5166 TITLE Approval of a Director’s Interpretation Pursuant to PAMC Section 18.01.025 Concluding That Noncomplying Residential Gross Floor Area may not be Relocated Within a Structure; Denial of the Associated Appeal; Direction to Prepare a Future Code Amendment for Administrative De Minimis Exceptions to the Zoning Code; CEQA: Exempt Pursuant to CEQA Guidelines Section 15061(b)(3) RECOMMENDATION Staff recommends that the City Council: 1. Uphold the Director of Planning and Development Services’ formal interpretation dated May 8, 2025, concluding that noncomplying residential gross floor area may not be removed and restored elsewhere on the property pursuant to Palo Alto Municipal Code (PAMC) Chapter 18.70, denying the associated appeal; and, 2. Direct staff to prepare a text amendment authorizing the Director of Planning and Development Services to consider or approve de minimis exceptions from noncomplying facility regulations and similar minor adjustments that are not impactful to adjacent properties or public realm. BACKGROUND On June 16, 2025, City Council members Burt, Lu, and Lythcott-Haims pulled the subject report from the consent calendar to schedule the subject hearing. Attachment A includes the previous report containing staff’s analysis and related attachments. Attachment B includes additional correspondence from the appellant subsequent to the Council’s action to pull the item. This correspondence appears to generally restate the appellant’s statement from the June 16, 2025 item, but adds an expanded introduction, an executive summary, a new footnote, and several references to a September 2016 email Item 10 Item 10 Staff Report        Item 10: Staff Report Pg. 1  Packet Pg. 334 of 445  announcing a change in staff implementation of Chapter 18.70. The additional material does not affect staff’s analysis. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 10 Item 10 Staff Report        Item 10: Staff Report Pg. 2  Packet Pg. 335 of 445  CITY OF PALO ALTO CITY COUNCIL Monday, June 16, 2025 Council Chambers & Hybrid 5:30 PM     Agenda Item     12.Approval of a Director’s Interpretation Pursuant to PAMC Section 18.01.025 Concluding That Noncomplying Residential Gross Floor Area may not be Relocated Within a Structure; Denial of the Associated Appeal; Direction to Prepare a Future Code Amendment for Administrative De Minimis Exceptions to the Zoning Code; CEQA: Exempt Pursuant to CEQA Guidelines Section 15061(b)(3) Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 3  Packet Pg. 336 of 445  7 4 4 4 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Planning and Development Services Meeting Date: June 16, 2025 Report #:2505-4747 TITLE Approval of a Director’s Interpretation Pursuant to PAMC Section 18.01.025 Concluding That Noncomplying Residential Gross Floor Area may not be Relocated Within a Structure; Denial of the Associated Appeal; Direction to Prepare a Future Code Amendment for Administrative De Minimis Exceptions to the Zoning Code; CEQA: Exempt Pursuant to CEQA Guidelines Section 15061(b)(3) RECOMMENDATION Staff recommends that the City Council: 1. Uphold the Director of Planning and Development Services’ formal interpretation dated May 8, 2025, concluding that noncomplying residential gross floor area may not be removed and restored elsewhere on the property pursuant to Palo Alto Municipal Code (PAMC) Chapter 18.70, denying the associated appeal; and 2. Direct staff to prepare a text amendment authorizing the Director of Planning and Development Services to consider or approve de minimis exceptions from noncomplying facility regulations and similar minor adjustments that are not impactful to adjacent properties or public realm. EXECUTIVE SUMMARY On May 8, 2025, the Director of Planning and Development Services issued a formal interpretation of PAMC Chapter 18.70, concluding that noncomplying gross floor area (GFA) may not be removed and replaced elsewhere on a site, even where total GFA is not increased. This interpretation was prompted by a minor remodel of a single-family home that remains over the district’s GFA limit. A timely appeal challenged the interpretation, arguing that the project does not intensify noncompliance and should be allowed. Staff believe that the Director‘s interpretation reflects the most reasonable and consistent application of the Municipal Code and that it supports the broader policy goal of reducing Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 4  Packet Pg. 337 of 445  7 4 4 4 noncomplying conditions over time. While the proposal in the appellant‘s case is minor, permitting it would render portions of the code meaningless and could create a precedent for larger changes inconsistent with the Code’s purpose. Staff recommend that the City Council deny the appeal, uphold the interpretation, and direct staff to prepare a future code amendment to allow administrative de minimis exceptions for minor residential modifications that do not impact neighbors or the public realm. BACKGROUND Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 5  Packet Pg. 338 of 445  7 4 4 4 Appellant’s Position The appellant’s statements are provided in Attachment B and summarized below. ANALYSIS Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 6  Packet Pg. 339 of 445  7 4 4 4 improvement to a noncomplying facility shall be permitted which increases the noncompliance. This section shall not be construed to prohibit enlargement or improvement of a facility, otherwise permitted by this title, which does not affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title. b) …. (not applicable to residential properties) The appellant asserts that their proposal is permitted by PAMC Section 18.17.080 because it does not affect the particular degree or manner of non-compliance. In essence, the appellant argues that a change in the location of a noncomplying feature cannot be considered a change in the manner of noncompliance because the word “manner” refers only to the general type of noncompliance (e.g. height, setback, or GFA) and cannot refer to “location.” The appellant’s position, however, eliminates the word “particular” from the code. The word “particular” adds a level of specificity to the requisite analysis. The “particular manner” of noncompliance is reasonably understood to mean the specific way in which a structure is noncomplying, which would include location. Rather than introducing new code language, as suggested by the appellant, the Director’s interpretation reflects a reasonable reading of the code that gives effect to all of its provisions. While the proposal at issue is a relatively minor change to the rear and side of the house, the code must be applied consistently across all residential project types. If the appellant’s reasoning were followed, a one-story home that exceeds the maximum GFA limit could demolish a large portion of the existing structure and rebuild the same amount of floor area as a second story. Though a second story may otherwise be allowed, this reconfiguration would significantly alter the form, massing, and presentation of the noncomplying structure, an outcome that meaningfully affects the manner in which the facility does not comply. Rather, this provision is intended to distinguish between improvements that preserve the nature and location of a nonconformity and those that materially alter it. For example, a home with a legal noncomplying front yard setback may be permitted to construct a second story or expand toward the rear of the property, so long as the new work complies with all applicable development standards and does not intensify or extend the existing noncompliance. In that scenario, the front yard setback remains unchanged and the particular degree and manner of noncompliance are not affected. Section 18.70.090 states: a) Normal and routine maintenance of a noncomplying facility shall be permitted for the purpose of preserving its existing condition, retarding or eliminating wear and tear or physical depreciation, or complying with the requirements of law. Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 7  Packet Pg. 340 of 445  7 4 4 4 b) Incidental alterations to a noncomplying facility shall be permitted, provided such alterations do not increase the degree of noncompliance, or otherwise increase the discrepancy between existing conditions and the requirements of this title. c) Structural alterations to a noncomplying facility shall be permitted when necessary to comply with the requirements of law, or to accommodate a conforming use when such alterations do not increase the degree of noncompliance, or otherwise increase the discrepancy between existing conditions and requirements of this title. This section governs routine maintenance and repair of noncomplying structures. While it permits work necessary to preserve the structure’s safe and sanitary condition, it does not allow for modifications that expand or reconfigure the noncompliance. Because the proposed project involves removing existing GFA and enclosing a separate area with new exterior walls, it constitutes a reconfiguration, not routine repair, and is therefore outside the scope of Section 18.70.090. Section 18.70.100 states: A noncomplying facility which is damaged or destroyed by any means except ordinary wear and tear and depreciation may be reconstructed only as a complying facility, except as follows: a) When the damage or destruction of a noncomplying facility affects only a portion of the facility that did not constitute or contribute to the noncompliance, said portion may be repaired or reconstructed to its previous configuration. b) When the damage or destruction of a noncomplying facility affects a portion of the facility that constituted or contributed to the noncompliance, any replacement or reconstruction to such damaged portion shall be accomplished in such manner as not to reinstate the noncompliance or degree of noncompliance caused by the destroyed or damaged portion of the facility, and otherwise in full compliance with this title; however, if the cost to replace or reconstruct the noncomplying portion of the facility to its previous configuration does not exceed fifty percent of the total cost to replace or reconstruct the facility in conformance with this subsection, then the damaged noncomplying portion may be replaced or reconstructed to its previous configuration. In no event shall such replacement or construction create, cause, or increase any noncompliance with the requirements of this title. c) …. (not applicable to residentially zoned properties) Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 8  Packet Pg. 341 of 445  7 4 4 4 d) Notwithstanding subsections (a), (b) and (c) hereof, a noncomplying facility housing a conforming use in the R-1 and RE zones, which when built was a complying facility, which is damaged or destroyed by non- willful means (i.e., acts of God) shall be permitted to be replaced, on the same site, and in its previous configuration, without necessity to comply with the current site development regulations, provided that any such replacement shall not result in increased floor area, height, length or any other increase in the size of the facility. e) Except as otherwise provided in this section with regard to replacement or reconstruction of a portion of a facility to its previous noncomplying condition, all reconstruction shall be subject to all applicable laws, regulations, and procedures otherwise governing construction on the site at the time said construction is undertaken. The appellant acknowledges that that PAMC Section 18.70.100 sensibly requires that if a noncomplying structure is deliberately demolished and subsequently replaced or reconstructed, that such replacement or reconstruction may not reinstate the noncompliance. The appellant argues this section is inapplicable to their project, however, because they do not propose to “replace” or “reconstruct” the GFA that is being removed. The appellant relies on the Merriam-Webster dictionary to assert that the term “replace” does not encompass the “relocation” of GFA from one place to another. In fact, the Merriam-Webster definition of “replace,” also includes “to take the place of especially as a substitute or successor,” and “to put something new in the place of.” Under both of these ordinary dictionary definitions, the appellants proposal to remove GFA from a second story and add GFA to the ground floor could reasonably be considered “replacement.” Again, the Director’s interpretation does not introduce the term ‘relocation’ into the code, but instead relies on the ordinary meaning of the terms already present. Reconstructing noncomplying GFA elsewhere on the site, regardless of whether the total GFA increases, constitutes an effort to replicate or replace the prior noncompliance in a new location. The provision makes clear that unless narrowly exempted, such features may not be rebuilt. This aligns with the broader purpose of Chapter 18.70 to phase out noncomplying conditions over time. The appellant’s interpretation is not only contrary to this purpose, but it leads to an absurd result: there is no rational explanation for why the code would prohibit reconstruction of a noncomplying feature once removed, while permitting the same noncompliance to be reintroduced elsewhere as a new improvement. Finally, the appellant asserts that their project does not involve the relocation of GFA but instead involves the demolition of GFA on the upper floor and a separate enlargement on the ground floor. This argument attempts to conceptually separate the removal and addition components of the project. However, if treated independently, the ground floor expansion would constitute a prohibited increase in noncompliance. The appellant’s position relies on Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 9  Packet Pg. 342 of 445  7 4 4 4 linking the two elements to claim there is no net change in the degree of noncompliance, an approach that selectively combines and separates aspects of the project depending on the desired outcome. Harrington v. City of Davis (2017) 16 Cal.App.5th 420, 434- 45.) Greater deference is particularly appropriate where, as here, there are “indications of careful consideration by senior agency officials.” (Ibid.) FISCAL/RESOURCE IMPACT Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 10  Packet Pg. 343 of 445  7 4 4 4 STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 11  Packet Pg. 344 of 445  PLANNING & DEVELOPMENT SERVICES 250 Hamilton Avenue, 5th Floor Palo Alto, CA 94301 (650) 329-2441 CITY OF PALO ALTO | 250 HAMILTON AVENUE, PALO ALTO, CA. 94301 | 650-329-2441 DATE: May 8, 2025 TO: Planning & Development Services Staff and Interested Community Members FROM: Jonathan Lait, Director SUBJECT: Director’s Interpretation Regarding Relocation of Noncomplying Residential Gross Floor Area Under PAMC Chapter 18.70 Authority Palo Alto Municipal Code (PAMC) Section 18.01.025 authorizes the Director of Planning and Development Services to interpret provisions of Titles 16, 18, and 21 of the Palo Alto Municipal Code. When warranted, formal written interpretations may be issued and posted on the City’s website. Such decisions become effective fourteen days after posting unless appealed in accordance with PAMC Section 18.77.070. Director’s Interpretation Where an existing residential building exceeds the allowable gross floor area (GFA) PAMC Chapter 18.70 prohibits the relocation of non-complying floor area from one location to another. Applicable Code Section(s) • 18.70.080: Noncomplying Facility – Enlargement • 18.70.090: Noncomplying facility – Maintenance and repair • 18.70.100: Noncomplying facility – Replacement Discussion Palo Alto’s zoning code limits the allowable GFA on residential properties to regulate bulk, scale, and neighborhood compatibility. Some structures that comply with development standards at the time they are constructed may become noncomplying as a result of a change in the applicable regulations (e.g. rezoning or annexation). PAMC Chapter 18.70 sets forth the rules under which such noncomplying facilities may be maintained. Relocation of noncomplying GFA may be independently prohibited by PAMC Sections 18.70.080 and 18.70.100; in addition, relocated GFA does not fall within the scope of permitted alterations under PAMC Section 18.70.090. PAMC Section 18.70.080: Noncomplying Facility – Enlargement Section 18.70.080, subd. (a), expressly prohibits any improvement to a noncomplying facility that increases the noncompliance. If further clarifies that it does not prohibit improvement of a facility, Docusign Envelope ID: 3A798A6F-1F4E-4D19-8275-72D1C645C1F0 Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 12  Packet Pg. 345 of 445  Page 2 otherwise permitted by Title 18 (the zoning code), which does not affect the particular degree or manner of the noncompliance. Taken holistically, staff interprets this section to prohibit an improvement that does affect the particular degree or manner of the noncompliance. For example, if a structure is noncomplying because a parapet at the rear of the property exceeds the maximum height by five feet, it would not be permitted to demolish the parapet and reconstruct it identically at the front of the property instead. Even if the new parapet would not increase the amount by which the structure exceeds the maximum height, the change in location would affect the particular manner of noncompliance. Similarly, the relocation of non-complying floor area would violate this prohibition. Section 18.70.080 is intended to allow the improvement of a noncomplying facility in a manner unrelated to the particular degree or manner of noncompliance. For example, it would allow a structure that is non-complying for height to receive additional GFA provided the new area otherwise complied with the zoning code (e.g. setbacks, lot coverage and floor area limitations, height). PAMC Section 18.70.090: Noncomplying Facility – Maintenance and repair Section 18.70.090 allows for the maintenance and repair of a noncomplying facility. It allows for incidental alterations that do not increase the degree of noncompliance. It also allows for structural alterations that do not increase the degree of noncompliance, so long as they are “necessary to comply with the requirements of law or to accommodate a conforming use.” Incidental alterations are defined in PAMC Section 18.04.030 to mean alterations to the interior of a building that do not increase its structural strength; alterations to mechanical, electrical and plumbing systems; and changes to fenestrations that do not increase the building’s structural strength. Structural alterations are defined as any other alteration. Staff interprets this section to allow structural alterations only when necessary to comply with the requirements of law (e.g. building code) or when necessary to accommodate a change to a conforming use (e.g. to provide sufficient egress for a residential use). Absent a change to a conforming use, structural alterations would only be permitted to comply with requirements of law. An alternative interpretation would leave the phrase “necessary to accommodate a conforming use” without any meaning and collapse the distinction between the allowances for incidental and structural alterations in Section 18.70.090. Section 18.70.090 is intended to allow incidental maintenance and repair of noncomplying facilities in a manner that does not increase noncompliance. It is less permissive regarding structural alterations. The relocation of noncomplying floor area will typically involve structural alterations; in the absence of a change to a conforming use, such alterations are only permitted to the extent necessary to comply with law. PAMC Section 18.70.100: Noncomplying Facility – Replacement Section 18.70.100 governs the reconstruction of a noncomplying facility that is damaged or destroyed by any means other than ordinary wear and tear. This includes willful damage and destruction as part of a Docusign Envelope ID: 3A798A6F-1F4E-4D19-8275-72D1C645C1F0 Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 13  Packet Pg. 346 of 445  Page 3 construction project as well as non-willful means.1 The general rule expressed this section is that a damaged or destroyed noncomplying facility may only be reconstructed as a complying facility unless an enumerated exception applies. Proposed relocation of noncomplying GFA falls under subdivision (b), which states that a portion of a facility that contributes to the noncompliance, if damaged or destroyed, may only be replaced or reconstructed in a manner that does not reinstate the noncompliance or the degree of noncompliance.2 Staff interprets the term “replacement” to include replacing demolished GFA in the same or a different location. This section therefore prohibits the removal of floor area that was willfully destroyed and contributed to a noncomplying GFA condition, as well as its reinstatement – whether in whole or in part – at any location within the structure. For example, a project that removes existing GFA and proposes to reconstruct that floor area in a location that requires demolition and reconstruction of exterior building walls to accommodate the removed GFA would involve reconstruction that constitutes a reinstatement of the noncompliance. The interpretations provided herein are the only ones that give coherent and internally consistent meaning to each of the code sections discussed. In particular, if either section 18.70.080(a) or section 18.70.090(c) is interpreted to allow the relocation of noncomplying floor area, it is unclear what meaning section 18.70.100(b) could have. These interpretations are also consistent with prior direction from the City Council regarding interpretation of similar provisions in PAMC section 18.18.120; in 2015, the City Council directed that the noncomplying facility provision in that section should not be interpreted to allow the relocation of noncomplying floor area in the CD district. _____________________________ Jonathan Lait, Director Planning and Development Services Attachment: Applicable Municipal Code Sections Posted on Website: May 8, 2025 Appeal Deadline: May 22, 2025 1 An alternative interpretation that applies section 18.70.100 only to non-willful damage or destruction would render subdivision (d) unnecessary, as that section provides a different rule for noncomplying facilities that are damaged and destroyed by non-willful means. 2 Subdivision (b) also provides an exception where the cost to replace or reconstruct the facility in compliance would be at least double the cost to replace or reconstruct the facility to its previous configuration; this analysis assumes that the exception is not triggered. Docusign Envelope ID: 3A798A6F-1F4E-4D19-8275-72D1C645C1F0 Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 14  Packet Pg. 347 of 445  Attachment: Applicable Municipal Code Sections Page 4 18.70.080 Noncomplying facility - Enlargement. (a) Except as specifically permitted by subsections (b) and (c) hereof or by Section 18.12.050(a), no enlargement, expansion, or other addition or improvement to a noncomplying facility shall be permitted which increases the noncompliance. This section shall not be construed to prohibit enlargement or improvement of a facility, otherwise permitted by this title, which does not affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title. (b) Except in areas designated as special study areas, the director of planning and development services may permit minor additions of floor area to noncomplying facilities in the commercial CC, CS and CN zones and in the industrial MOR, ROLM, RP and GM districts, subject to applicable site development regulations, for purposes of on-site employee amenities, resource conservation, or code compliance, upon the determination that such minor additions will not, of themselves, generate substantial additional employment. Such additions may include, but not be limited to, the following: (1) Area designed and used solely for providing on-site services to employees of the facility, such as recreational facilities, credit unions, cafeterias and day care facilities; (2) Area designated for resource conservation, such as trash compactors, recycling and thermal storage facilities; and (3) Area designed and required for hazardous materials storage facilities, handicapped access, and seismic upgrades. (Ord. 5494 § 3, 2020: Ord. 5381 § 7, 2016: Ord. 5373 § 22 (part), 2016: Ord. 3890 § 20, 1989: Ord. 3683 § 18, 1986: Ord. 3048 (part), 1978) 18.70.090 Noncomplying facility - Maintenance and repair. (a) Normal and routine maintenance of a noncomplying facility shall be permitted for the purpose of preserving its existing condition, retarding or eliminating wear and tear or physical depreciation, or complying with the requirements of law. (b) Incidental alterations to a noncomplying facility shall be permitted, provided such alterations do not increase the degree of noncompliance, or otherwise increase the discrepancy between existing conditions and the requirements of this title. (c) Structural alterations to a noncomplying facility shall be permitted when necessary to comply with the requirements of law, or to accommodate a conforming use when such alterations do not increase the degree of noncompliance, or otherwise increase the discrepancy between existing conditions and requirements of this title. (Ord. 5381 § 7, 2016: Ord. 3683 § 17, 1986: Ord. 3048 (part), 1978) 18.70.100 Noncomplying facility - Replacement. A noncomplying facility which is damaged or destroyed by any means except ordinary wear and tear and depreciation may be reconstructed only as a complying facility, except as follows: (a) When the damage or destruction of a noncomplying facility affects only a portion of the facility that did not constitute or contribute to the noncompliance, said portion may be repaired or reconstructed to its previous configuration. Docusign Envelope ID: 3A798A6F-1F4E-4D19-8275-72D1C645C1F0 Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 15  Packet Pg. 348 of 445  Attachment: Applicable Municipal Code Sections Page 5 (b) When the damage or destruction of a noncomplying facility affects a portion of the facility that constituted or contributed to the noncompliance, any replacement or reconstruction to such damaged portion shall be accomplished in such manner as not to reinstate the noncompliance or degree of noncompliance caused by the destroyed or damaged portion of the facility, and otherwise in full compliance with this title; however, if the cost to replace or reconstruct the noncomplying portion of the facility to its previous configuration does not exceed fifty percent of the total cost to replace or reconstruct the facility in conformance with this subsection, then the damaged noncomplying portion may be replaced or reconstructed to its previous configuration. In no event shall such replacement or construction create, cause, or increase any noncompliance with the requirements of this title. (c) Notwithstanding subsections (a) and (b) hereof, a noncomplying facility in the commercial CS, CN and CC zones and the industrial MOR, ROLM, RP and GM districts, except for those areas designated as special study areas, existing on August 1, 1989, which when built was a complying facility, shall be permitted to be remodeled, improved or replaced in accordance with applicable site development regulations other than floor area ratio, provided that any such remodeling, improvement or replacement shall not result in increased floor area. (d) Notwithstanding subsections (a), (b) and (c) hereof, a noncomplying facility housing a conforming use in the R-1 and RE zones, which when built was a complying facility, which is damaged or destroyed by non-willful means (i.e., acts of God) shall be permitted to be replaced, on the same site, and in its previous configuration, without necessity to comply with the current site development regulations, provided that any such replacement shall not result in increased floor area, height, length or any other increase in the size of the facility. (e) Except as otherwise provided in this section with regard to replacement or reconstruction of a portion of a facility to its previous noncomplying condition, all reconstruction shall be subject to all applicable laws, regulations, and procedures otherwise governing construction on the site at the time said construction is undertaken. (Ord. 5381 § 7, 2016: Ord. 4102 § 1 (part), 1992: Ord. 4016 § 46, 1991: Ord. 3905 § 18, 1989: Ord. 3890 § 21, 1989: Ord. 3048 (part), 1978) Docusign Envelope ID: 3A798A6F-1F4E-4D19-8275-72D1C645C1F0 Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 16  Packet Pg. 349 of 445  1 Subject – Appeal of Director’s Application of PAMC § 18.70.100 to Project Concerning 3886 Magnolia Drive, #25BLD-00025 Dear Mayor Lauing and Members of the City Council: My wife and I hereby appeal the Director’s May 8, 2025, Interpretation Regarding Relocation of Noncomplying Residential Gross Floor Area Under PAMC Chapter 18.70 (the “Determination”). The Planning Department, on the sole basis of the Determination, has rejected our application for a small remodel of our home in Barron Park which was built in 1948, long prior to Palo Alto’s annexure of our section of the City of Palo Alto. Background on Our Proposed Project Our home is currently two stories (although the second story is quite small and is essentially a permitted loft space). Our project is designed to convert our home fully into a single-floor home (in that respect, it is very much unlike the many second story additions routinely processed by the Planning Department). Essentially, the aim of the project is to create a closet in the room that we are using as our primary bedroom and relocate some utilities, such as the laundry and additional kitchen and cleaning storage, to a permitted rumpus room and provide interior access to that room from our existing kitchen. Currently, we maintain a closet in an upstairs, permitted loft area which entails navigating a steep and narrow staircase (the “Unsafe Permitted Loft Area”). The project does not enlarge the building envelope, add floor area, or replace any space that is “damaged or destroyed.” It removes from FAR the Unsafe Permitted Loft Area and does not “replace” or “reconstruct” that space (i.e., there will no longer be an upstairs loft area in my home and my home will be a single floor structure). Despite the project’s very modest scope (which is wholly consistent with the City’s goals of enabling aging in place), the Director has arbitrarily and erroneously invoked Palo Alto Municipal Code § 18.70.100 to deny the application. By its express and unambiguous terms, that provision applies when property is “damaged or destroyed” and that portion is “replaced” or “reconstructed.” We are, in fact, not “replacing” or “reconstructing” the Unsafe Permitted Loft Area and thus § 18.70.100 is inapplicable on its face. Instead, § 18.70.080 applies and our project was carefully designed to comply with that provision. Analysis Relevant Law and the Standard of Review When interpreting an ordinance, courts apply the same rules of interpretation applicable to statutes. See Save Our Heritage Organisation v. City of San Diego (2015) 237 Cal.App.4th 163, 174, 187 Cal.Rptr.3d 754.). Courts first examine the language of the ordinance, giving the words their usual and ordinary meaning, in the context of the ordinance as a whole and its purpose. See Audio Visual Services Group, Inc. v. Super. Ct., 182 Cal. Rptr. 3d 748, 754 (Cal. App. 2d Dist. 2015). In addition, courts “apply common sense to the language at hand” and interpret a Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 17  Packet Pg. 350 of 445  2 provision in a manner that makes “it workable and reasonable” and avoids an absurd result. Wasatch Property Management v. Degrate (2005) 35 Cal.4th 1111, 1122, 29 Cal.Rptr.3d 262, 112 P.3d 647. Interpretation of the Municipal Code presents a pure question of law and as such the Director’s interpretation is entitled to no deference. See MacIsaac v. Waste Management Collection & Recycling, Inc. (2005) 134 Cal.App.4th 1076, 10. See also Manriquez v. Gourley, 130 Cal. Rptr. 2d 209, 214 (Cal. App. 4th Dist. 2003) (review of an agency’s factual determinations are subject to the substantial evidence rule but “where … the determinative question is one of statutory or regulatory interpretation, an issue of law, [courts] may exercise … independent judgment.”). If we are forced to proceed with an appeal to Santa Clara Superior Court, the City would face the prospect of a significant award of attorneys’ fee award as we would be seeking to vindicate the public’s interest in the proper interpretation of the Palo Alto Municipal Code. See CCP § 1858 (“Upon motion, a court may award attorneys’ fees to a successful party against one or more opposing parties in any action which has resulted in the enforcement of an important right affecting the public interest …”). Also, in litigation the Planning Department would be subject to discovery aimed at determining whether it is invoking Section 100 even-handedly to small remodels like ours (this issue is also the subject of a pending request under the California Public Records Act and I respectfully reserve the right to update the Council once the City has produced adequate records in response to our request).1 The Director’s Determination The Director largely bases his rejection of our plan on Section 18.70.100.2 That section governs reconstruction of a residential structure that already exceeds current zoning limits and is damaged or deliberately demolished, and it generally (and sensibly) requires that if that facility is “replac[ed]” or “reconstruct[ed] that such replacement or reconstruction not reinstate the noncompliance. The full text of that provision is appended below with relevant highlighting. 1 Indeed, if Section 100 applies to our small project the Planning Department would necessarily have to reject every single remodel of any noncomplying facility (action which would invite a cascade of litigation centered on unlawful taking of property). Judging by the number of projects that are ongoing in Barron Park every day of the week, not even the Planning Department is taking such a restrictive view of Section 100. Indeed, and to its credit, the Planning Department attempted to get some clarity around the meaning and scope of Section 100 back in 2015 but that effort did not gain traction with the members of the City Council at that time. See City Council Staff Report # 6333. We suspect that the Planning Department would benefit from and even appreciate this Council’s guidance on this important issue. 2 Until the Determination was issued on May 8, 2025, the Director entirely rested his rejection on Section 100. In the Determination, he attempts to buttress the rejection with a new claim that we do not satisfy Section 80. This late argument clearly suggests that the Director lacks confidence in his application of Section 100. In any event, the Director’s belated interpretation of Section 80 suffers from the same type of flaw that infects his analysis of Section 100, namely that he inserts terms that are not found in the text of the Code (see infra at 5). Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 18  Packet Pg. 351 of 445  3 We are clearly not “replacing” or “reconstructing” the Unsafe Permitted Loft Area. We are demolishing it altogether and not replacing or reconstructing it. The Director would of course be correct if we were altering the Unsafe Permitted Loft Area and keeping it as loft space. But that is not our plan. Since we are not replacing or reconstructing the Unsafe Permitted Loft Area, Section 100 is inapplicable because it only governs replacing or reconstructing space (see highlighting below). The Director elides this unmistakable fact by arguing in the Determination that what we are doing is “relocating” non-complying floor area and that somehow triggers Section 100. We in fact do not agree that we are “relocating” square footage. Instead, and consistent with § 18.70.080, we are “enlarging” or “improving” a facility in a manner that does not “affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title.” However, even if the Director were correct in characterizing our project as “relocating” square footage, even then he would be incorrect in claiming that such “relocating” triggers Section 100. This is for the simple and unmistakable reason that Section 100 applies to replacing or reconstructing a portion of a noncomplying facility and we are not replacing or reconstructing the Unsafe Permitted Loft Area. The ordinary dictionary definition of replace is “to restore to a former place or position.” See https://www.merriam-webster.com/dictionary/replace. The ordinary dictionary definition of “reconstruct” is “to build or assemble (something) again.” See https://www.merriam-webster.com/dictionary/reconstruct. Our project does not restore the Unsafe Permitted Loft Area nor does it assemble it again. As such, Section 100 is wholly inapplicable and the Director has invoked it erroneously. Essentially, and improperly, the Director attempts to graft the additional terms bolded in red below to the following portion of Section 100: When the damage or destruction of a noncomplying facility affects a portion of the facility that constituted or contributed to the noncompliance, any replacement or reconstruction to such damaged portion, [or relocation thereof,] shall be accomplished in such manner as not to reinstate the noncompliance or degree of noncompliance caused by the destroyed or damaged portion of the facility, and otherwise in full compliance with this title. But the term “relocation” appears nowhere in the text of Section 100. It is clearly improper for the Director to insert new terms and limitations in existing Code. If the City wishes to revise the Code it is of course free to do so after complying with State and locale procedure for such modifications. Until then, the Planning Department is obligated to apply the Code as written. See CCP § 1858 (“In the construction of a statute or instrument, the office of the Judge is simply to ascertain and declare what is in terms or in substance contained therein, not to insert what has Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 19  Packet Pg. 352 of 445  4 been omitted, or to omit what has been inserted; and where there are several provisions or particulars, such a construction is, if possible, to be adopted as will give effect to all.”).3 Our Project Is In Full Compliance with § 18.70.080 Fortunately, the Palo Alto Municipal Code has a provision that is specifically crafted to provide Palo Alto homeowners with much needed breathing room to update and modernize their homes. Section 80 allows “enlargements” of facilities so long as they “do not increase the degree or manner of non-compliance.” The flexibility offered by Section 80 is essential to the Code’s statutory scheme. Without it, the City would invite challenges under both the California and U.S. Constitutions (regulatory takings jurisprudence), as well as under the Housing Crisis Act of 2019 and the Housing Accountability Act, which limit a local agency’s ability to down zone or impose new standards midstream. “Degree” in the context of Section 80 unquestionably speaks to quantity (the same 2,000 sq ft remains) and “manner” speaks to type of violation. Our proposed project keeps the existing Site Coverage and actually reduces FAR by 11 square feet. Nonetheless, the Director asserts that “relocating” floor area changes the “manner” of non-compliance because the second floor excess becomes first floor excess. To begin, and as noted above, the Director’s assertion that we are “relocating” floor area is simply incorrect. More fundamentally, there is nothing in the Code that says the vertical placement of excess floor area is itself a violation. The Director’s logic invents a brand-new metric—location—that appears nowhere in §§ 80, 90, or 100. Under the plain meaning rule, his attempt to graft new terms into existing code should be rejected. See Cnty. of Sacramento v. P. Gas & Elec. Co., 238 Cal. Rptr. 305, 311 (Cal. App. 3d Dist. 1987) (“Where the language is plain and admits of no more than one meaning, the duty of interpretation does not arise, and the rules which are to aid doubtful meanings need no discussion.”) (quotation omitted); see also Franklin v. Appel, 10 Cal. Rptr. 2d 759, 765 (Cal. App. 2d Dist. 1992) (“The court will not, under the guise of construction, rewrite a law, and will not give the words an effect different from the plain and direct import of the terms used.”). Thus, there is no question that our project comports with Section 80. Indeed, during the application process the Planning Department based its rejection of our plan solely on Section 100. It was only in the Determination that the Director first claimed that we do not satisfy 3 In his Determination, the Director cites in support of his interpretation the 2015 Council’s consideration of an amendment to a different provision of the Code, section 18.18.120. This provision of the Code is not at issue here and relates to commercial buildings in the Palo Alto Commercial District. (Determination at 3). The proceedings referenced by the Director related to a proposed amendment to the Code and not an interpretation of it. The fact that the Planning Department recognized in 2015 that it needed to amend the Code to apply to relocated space as to commercial buildings in the Commercial District underscores that the Department would need to do the same here to obtain the outcome the Director seeks. Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 20  Packet Pg. 353 of 445  5 Section 80 as well (as noted above in footnote 2, the last-minute citation to Section 80 likely reflects the Director’s growing realization that Section 100 is not in fact applicable to our project). Once again, the Director tries to graft terms into the Planning Code that are simply not there. The Determination claims that Section 80 “is intended to allow the improvement of a noncomplying facility in a manner unrelated to the particular degree or manner of noncompliance.” (Determination at 2, emphasis added). But the Code uses the term “affect” not “unrelated.” Our home does not affect the degree of noncompliance because it does not add to it in any respect. Here as well the Director must apply the Code as written and not language that the Director apparently wishes it contained.4 Conclusion In sum, and viewing the provisions “holistically” (as the Director purports to do), Section 80 allows “enlargements” of noncomplying facilities provided they do not “affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title.” § 18.70.080 (emphasis added). Section 100 applies when a property owner seeks to replace or reconstruct a non-complying facility or a portion of a non-complying facility. § 18.70.100 (emphasis added). With respect to our project, we are proposing an addition that does not affect the degree of non- compliance of our project. We are removing the Unsafe Permitted Loft Area and not reconstructing it. As such, Section 80 applies and is satisfied and Section 100 has no application as a matter of law. It is therefore not within the Director’s discretion to deny the application nor is his legal interpretation of provisions of the Code entitled to any degree of deference by the Council (or, if need be, a court). Relief Requested The relief we seek is modest: the ability to improve safety and accessibility in our longtime home without being compelled to demolish legally built, character defining portions of the structure. Timely intervention will spare everyone protracted appeals and public controversy, restore trust in the permitting system, and align City practice with the letter of its own ordinances. 4 California is of course in a housing crisis. It is therefore quite concerning to my wife and I and a number of other Palo Alto homeowners that the Director is so hostile to reasonable development efforts that he seems to create limitations on the right to develop property when none exist. Indeed, the State of California has directed complaints to the Planning Department for precisely this reason. See https://www.paloaltoonline.com/palo-alto/2025/04/03/state-orders-palo-alto-to-revise-laws-on-backyard-dwellings/. It is therefore no surprise that the Planning Department under the Director’s leadership receives abysmal reviews and remains the subject of much frustration in our community. See https://www.paloaltoonline.com/palo- alto/2024/12/10/residents-pan-permitting-laud-libraries-in-new-survey/. Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 21  Packet Pg. 354 of 445  6 My wife and I respectfully request that the Council reverse the Director’s May 8 determination and find that our remodel complies with § 18.70.080 and that § 18.70.100 does not apply and direct staff to issue ministerial approvals forthwith. We are available to answer any questions or provide supplemental material at the Council’s request. Respectfully submitted, /s/ Joseph and Colleen Petersen Owners / Applicants 3886 Magnolia Drive, Palo Alto, California 94306 (917) 859 9680 jpetersen@ktslaw.com Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 22  Packet Pg. 355 of 445  7 Appendix Relevant Provisions of the Palo Alto Municipal Code 18.70.100 Noncomplying facility - Replacement. A noncomplying facility which is damaged or destroyed by any means except ordinary wear and tear and depreciation may be reconstructed only as a complying facility, except as follows: (a) When the damage or destruction of a noncomplying facility affects only a portion of the facility that did not constitute or contribute to the noncompliance, said portion may be repaired or reconstructed to its previous configuration. (b) When the damage or destruction of a noncomplying facility affects a portion of the facility that constituted or contributed to the noncompliance, any replacement or reconstruction to such damaged portion shall be accomplished in such manner as not to reinstate the noncompliance or degree of noncompliance caused by the destroyed or damaged portion of the facility, and otherwise in full compliance with this title; however, if the cost to replace or reconstruct the noncomplying portion of the facility to its previous configuration does not exceed fifty percent of the total cost to replace or reconstruct the facility in conformance with this subsection, then the damaged noncomplying portion may be replaced or reconstructed to its previous configuration. In no event shall such replacement or construction create, cause, or increase any noncompliance with the requirements of this title. (c) Notwithstanding subsections (a) and (b) hereof, a noncomplying facility in the commercial CS, CN and CC zones and the industrial MOR, ROLM, RP and GM districts, except for those areas designated as special study areas, existing on August 1, 1989, which when built was a complying facility, shall be permitted to be remodeled, improved or replaced in accordance with applicable site development regulations other than floor area ratio, provided that any such remodeling, improvement or replacement shall not result in increased floor area. (d) Notwithstanding subsections (a), (b) and (c) hereof, a noncomplying facility housing a conforming use in the R-1 and RE zones, which when built was a complying facility, which is damaged or destroyed by non-willful means (i.e., acts of God) shall be permitted to be replaced, on the same site, and in its previous configuration, without necessity to comply with the current site development regulations, provided that any such replacement shall not result in increased floor area, height, length or any other increase in the size of the facility. (e) Except as otherwise provided in this section with regard to replacement or reconstruction of a portion of a facility to its previous noncomplying condition, all reconstruction shall be subject to all applicable laws, regulations, and procedures otherwise governing construction on the site at the time said construction is undertaken. (Ord. 5381 § 7, 2016: Ord. 4102 § 1 (part), 1992: Ord. 4016 § 46, 1991: Ord. 3905 § 18, 1989: Ord. 3890 § 21, 1989: Ord. 3048 (part), 1978) 18.70.080 Noncomplying facility - Enlargement. (a) Except as specifically permitted by subsections (b) and (c) hereof or by Section 18.12.050(a), no enlargement, expansion, or other addition or improvement to a noncomplying facility shall be permitted which increases the noncompliance. This section shall not be construed to prohibit enlargement or improvement of a facility, otherwise permitted by this title, which does not affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title. Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 23  Packet Pg. 356 of 445  8 (b) Except in areas designated as special study areas, the director of planning and development services may permit minor additions of floor area to noncomplying facilities in the commercial CC, CS and CN zones and in the industrial MOR, ROLM, RP and GM districts, subject to applicable site development regulations, for purposes of on-site employee amenities, resource conservation, or code compliance, upon the determination that such minor additions will not, of themselves, generate substantial additional employment. Such additions may include, but not be limited to, the following: (1) Area designed and used solely for providing on-site services to employees of the facility, such as recreational facilities, credit unions, cafeterias and day care facilities; (2) Area designated for resource conservation, such as trash compactors, recycling and thermal storage facilities; and (3) Area designed and required for hazardous materials storage facilities, handicapped access, and seismic upgrades. (Ord. 5494 § 3, 2020: Ord. 5381 § 7, 2016: Ord. 5373 § 22 (part), 2016: Ord. 3890 § 20, 1989: Ord. 3683 § 18, 1986: Ord. 3048 (part), 1978) Item 10 Attachment A - Council Report with Attachments, Dated June 16, 2025        Item 10: Staff Report Pg. 24  Packet Pg. 357 of 445  Colleen and Joseph Petersen 3886 Magnolia Drive Palo Alto, CA 94306 August 3, 2025 City Council City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 Subject – Appeal of Director’s Application of PAMC § 18.70.100 to Project Concerning 3886 Magnolia Drive, #25BLD-00025 Dear Mayor Lauing and Members of the City Council: Thank you for the opportunity to be heard at the August 18, 2025 Council meeting regarding the Director’s May 8, 2025, Interpretation Regarding Relocation of Noncomplying Residential Gross Floor Area Under PAMC Chapter 18.70 (the “Determination”). The Planning Department, on the sole basis of the Determination, has preliminarily denied our application for a very modest remodel of our home in Barron Park. That remodel is designed to convert our home to a one story residence in the interest of allowing us to “age in place” in a home built in 1948 in full compliance with Santa Clara county building code, long prior to Palo Alto’s annexure of our section of the City of Palo Alto. Introduction and Summary of Issue Our home is currently two stories. Our second story is quite small and is essentially a permitted loft space that is accessed through a very steep and narrow staircase (as a shorthand, we will refer to it here as the “existing second-floor room”). Our project is designed to convert our home fully into a single-floor home (in that respect, it has far less neighborhood impact than the many second story additions routinely processed by the Planning Department). Essentially, the aim of the project is to create a closet in the room that we are using as our primary bedroom and relocate some utilities, such as the laundry and additional kitchen and cleaning storage, to a permitted rumpus room and provide interior access to that room from our existing kitchen. We designed our project to comply with existing Palo Alto planning and building code. Specifically, Palo Alto Municipal Code § 18.70.080 expressly permits “enlargements” of noncomplying facilities provided they do not “affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title.” § 18.70.080 (emphasis added). Our project does not “affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title” because it does not: (i) enlarge the lot coverage or add total floor area. In fact, it reduces FAR by 11 square feet by eliminating the upstairs loft and building out on the first floor less square footage than we are removing from the second floor. Item 10 Attachment B - Additional Appellant Correspondence, Dated August 3, 2025        Item 10: Staff Report Pg. 25  Packet Pg. 358 of 445  2 Nonetheless, the Director has delayed the application for many months on the basis of the Department’s relatively new interpretation of a different provision, § 18.70.100. That section, on its face, is applicable to noncomplying facilities that are damaged or destroyed and the owner seeks to reconstruct that portion. Notwithstanding the fact that this provision is facially inapplicable to my project and does not override § 18.70.080 either explicitly or implicitly, the Department has invoked it and has refused to allow my application to proceed. There are two very significant flaws with the Department’s interpretation. First, it has no support in the actual language of § 18.70.100 (the full text of which is appended below). The Department’s grafting of additional restrictions in Section 100 effectively nullifies the standard governing “enlargements” in Section 80. Second, even the Department viewed Section 100 as having no such limitation until relatively recently. An e-mail produced by the City pursuant to a California Public Records Act request confirms that the City actually expressly permitted projects such as mine until September, 2016 and then abruptly abandoned that practice without seeking any changes to the actual language of § 18.70.100 (or even seeking any guidance from the Council). A copy of this e-mail is attached and the relevant language reads as follows: In the past, staff has permitted homeowners to remove square footage from one part of a house and add it back to another portion when the property was over FAR. This was done on a case by case basis and there was criteria to ensure the new square footage would be less impactful. Unfortunately, while this was a long standing staff policy, there is no provision in the code that allows this type of “cut and paste”. Therefore “cut and paste” is officially dead! Please ensure all projects conform to Code Section 18.70. Email from Jodie Gerhardt, Development Center Manager, September 23, 2016. In fact, Ms. Gerhardt had it backwards and the City’s prior interpretation of § 18.70.100 was the correct one because it simply does not speak to remodeling projects such as mine and has no language supporting the City’s new interpretation. Instead, Section 80 applies and it authorizes our modest project because that project does not “affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title.” Finally, we note that in the days prior to our appeal appearing on the Consent Calendar the City advised us that it was willing to amend the Code in a manner that would authorize projects like ours under a de minimis exception. We are grateful for that positive step and proposed that this appeal be suspended pending adoption of the exception but the City was not willing to agree to any sort of timeline on the amendment. Since we are literally “not getting any younger” and without any assurances on timing of the amendment, we believe we have no choice but to move forward with our appeal. We, along with similarly situated homeowners, eagerly await Council’s position on the Director’s Interpretation and thank the Council for its consideration of our appeal. Item 10 Attachment B - Additional Appellant Correspondence, Dated August 3, 2025        Item 10: Staff Report Pg. 26  Packet Pg. 359 of 445  3 Executive Summary Relief Requested: Reverse the May 8, 2025 Determination and direct ministerial processing of Permit #25BLD-00025. Basis: PAMC § 18.70.080 permits the proposed work because it does not increase the particular degree or manner of noncompliance. PAMC § 18.70.100 applies only when a damaged or destroyed noncomplying portion is replaced or reconstructed; here, the noncomplying second-floor room is being removed—not replaced or reconstructed—and thus § 18.70.100 does not constrain the new first-floor work, which is instead evaluated under § 18.70.080. Support: (i) the text of PAMC § 18.70.100; (ii) 2016 staff email stating that PAMC § 18.70.100 does not bar reconfiguration of floor area within the same nonconforming structure where the degree or manner of noncompliance is not increased; (iii) plan-set metrics table below demonstrating no increase. Before/After Zoning Metrics (Attach as Exhibit A) Metric Existing Proposed Lot Area (sf) 8,100 SF No Change Allowable GFA (sf) 3,180 SF No Change GFA (sf) 3,455.30 SF 3,444.06 SF FAR 3,455.30 SF = 42.65% 3,444.06 SF = 42.52% Site Coverage (%) 3,922.39 SF (48.42%) 3,912.53 SF (48.30%) Setbacks (F/R/S) (ft) 20’-2”/45’-1”/ 4’-10” No Change/43’-1”/ 4’-10” Height / Daylight Plane 18’-5”/(E) Non-Conforming gable on L Side to Remain (covered/uncovered) tandem Analysis Relevant Law and the Standard of Review When interpreting an ordinance, courts apply the same rules of interpretation applicable to statutes. See Save Our Heritage Organisation v. City of San Diego, (2015) 237 Cal.App.4th 163, 174, 187 Cal.Rptr.3d 754.). Courts first examine the language of the ordinance, giving the words their usual and ordinary meaning, in the context of the ordinance as a whole and its purpose. See Item 10 Attachment B - Additional Appellant Correspondence, Dated August 3, 2025        Item 10: Staff Report Pg. 27  Packet Pg. 360 of 445  4 Audio Visual Services Group, Inc. v. Super. Ct., 182 Cal. Rptr. 3d 748, 754 (Cal. App. 2d Dist. 2015). In addition, courts “apply common sense to the language at hand” and interpret a provision in a manner that makes “it workable and reasonable” and avoids an absurd result. Wasatch Property Management v. Degrate, (2005) 35 Cal.4th 1111, 1122, 29 Cal.Rptr.3d 262, 112 P.3d 647. Interpretation of the Municipal Code presents a pure question of law and as such the Director’s interpretation is entitled to no deference. See MacIsaac v. Waste Management Collection & Recycling, Inc. (2005) 134 Cal.App.4th 1076, 10. See also Manriquez v. Gourley, 130 Cal. Rptr. 2d 209, 214 (Cal. App. 4th Dist. 2003) (review of an agency’s factual determinations are subject to the substantial evidence rule but “where … the determinative question is one of statutory or regulatory interpretation, an issue of law, [courts] may exercise … independent judgment.”).1 If we are forced to proceed with an appeal to Santa Clara Superior Court, the City would face the prospect of a significant award of attorneys’ fee award as we would be seeking to vindicate the public’s interest in the proper interpretation of the Palo Alto Municipal Code. See CCP § 1021.5 (“Upon motion, a court may award attorneys’ fees to a successful party against one or more opposing parties in any action which has resulted in the enforcement of an important right affecting the public interest …”). Also, in litigation the Planning Department would be subject to discovery aimed at determining whether it is invoking Section 100 even-handedly to small remodels like ours (this issue is also the subject of a pending request under the California Public Records Act and I respectfully reserve the right to update the Council once the City has produced adequate records in response to our request).2 The Director’s Determination The Director largely bases his rejection of our plan on Section 18.70.100.3 That section governs reconstruction of a residential structure that already exceeds current zoning limits and is 1 The Department has argued that it is entitled to some degree of deference when interpreting the City’s own municipal code. While this may be correct as a general matter, that principle should not apply here when the Department’s interpretation has no grounding in the actual language of the Code and the Department followed the exact opposite interpretation prior to its unexplained about-face in 2016 (see Ms. Gerhardt’s September 23, 2016 e-mail). 2 Indeed, if Section 100 applies to our small project the Planning Department would necessarily have to reject every single remodel of any noncomplying facility (action which would invite a cascade of litigation centered on unlawful taking of property). Judging by the number of projects that are ongoing in Barron Park every day of the week, not even the Planning Department is taking such a restrictive view of Section 100. Indeed, and to its credit, the Planning Department attempted to get some clarity around the meaning and scope of Section 100 back in 2015 but that effort did not gain traction with the members of the City Council at that time. See City Council Staff Report # 6333. We suspect that the Planning Department would benefit from and even appreciate this Council’s guidance on this important issue. 3 Until the Determination was issued on May 8, 2025, the Director entirely rested his rejection on Section 100. In the Determination, he attempts to buttress the rejection with a new claim that we Item 10 Attachment B - Additional Appellant Correspondence, Dated August 3, 2025        Item 10: Staff Report Pg. 28  Packet Pg. 361 of 445  5 damaged or deliberately demolished, and it generally (and sensibly) requires that if that facility is “replac[ed]” or “reconstruct[ed] that such replacement or reconstruction not reinstate the noncompliance. The full text of that provision is appended below with relevant highlighting. We are clearly not “replacing” or “reconstructing” the existing second-floor room. We are converting it to attic space and not replacing or reconstructing it. The Director would be correct if we were altering the existing second-floor room and keeping it as loft space. But that is not our plan. Since we are not replacing or reconstructing the existing second-floor room, Section 100 is inapplicable because it only governs replacing or reconstructing space (see highlighting below). The Director elides this unmistakable fact by arguing in the Determination that what we are doing is “relocating” non-complying floor area and that somehow triggers Section 100. We in fact do not agree that we are “relocating” square footage. Instead, and consistent with § 18.70.080, we are “enlarging” or “improving” a facility in a manner that does not “affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title.” However, even if the Director were correct in characterizing our project as “relocating” square footage, even then he would be incorrect in claiming that such “relocating” triggers Section 100. This is for the simple and unmistakable reason that Section 100 applies to replacing or reconstructing a portion of a noncomplying facility and we are not replacing or reconstructing the existing second-floor room. The ordinary dictionary definition of replace is “to restore to a former place or position.” See https://www.merriam-webster.com/dictionary/replace. The ordinary dictionary definition of “reconstruct” is “to build or assemble (something) again.” See https://www.merriam-webster.com/dictionary/reconstruct. Our project does not restore the existing second-floor room nor does it assemble it again. As such, Section 100 is wholly inapplicable and the Director has invoked it erroneously. Essentially, and improperly, the Director attempts to graft the additional terms bolded in red below to the following portion of Section 100: When the damage or destruction of a noncomplying facility affects a portion of the facility that constituted or contributed to the noncompliance, any replacement or reconstruction to such damaged portion, [or relocation thereof,] shall be accomplished in such manner as not to reinstate the noncompliance or degree of noncompliance caused by the destroyed or damaged portion of the facility, and otherwise in full compliance with this title. But the term “relocation” appears nowhere in the text of Section 100. It is clearly improper for the Director to insert new terms and limitations in existing Code. If the City wishes to revise the do not satisfy Section 80. This late argument clearly suggests that the Director lacks confidence in his application of Section 100. In any event, the Director’s belated interpretation of Section 80 suffers from the same type of flaw that infects his analysis of Section 100, namely that he inserts terms that are not found in the text of the Code (see infra at 6). Item 10 Attachment B - Additional Appellant Correspondence, Dated August 3, 2025        Item 10: Staff Report Pg. 29  Packet Pg. 362 of 445  6 Code it is of course free to do so after complying with State and local procedure for such modifications. Until then, the Planning Department is obligated to apply the Code as written. See CCP § 1858 (“In the construction of a statute or instrument, the office of the Judge is simply to ascertain and declare what is in terms or in substance contained therein, not to insert what has been omitted, or to omit what has been inserted; and where there are several provisions or particulars, such a construction is, if possible, to be adopted as will give effect to all.”).4 Our Project Is In Full Compliance with § 18.70.080 Fortunately, the Palo Alto Municipal Code has a provision that is specifically crafted to provide Palo Alto homeowners with homes that do not comply with current code (which is in fact a significant percentage of homes in Palo Alto) with much needed breathing room to update and modernize their homes. Section 80 allows “enlargements” of facilities so long as they “do not increase the degree or manner of noncompliance.” The flexibility offered by Section 80 is essential to the Code’s statutory scheme. Without it, the City would invite challenges under both the California and U.S. Constitutions (regulatory takings jurisprudence), as well as under the Housing Crisis Act of 2019 and the Housing Accountability Act, which limit a local agency’s ability to down zone or impose new standards midstream. “Degree” in the context of Section 80 unquestionably speaks to quantity (the same 2,000 sq ft remains) and “manner” speaks to type of violation. Our proposed project keeps the existing Site Coverage and actually reduces FAR by 11 square feet. Nonetheless, the Director asserts that “relocating” floor area changes the “manner” of noncompliance because the second floor excess becomes first floor excess. To begin, and as noted above, the Director’s assertion that we are “relocating” floor area is simply incorrect. More fundamentally, there is nothing in the Code that says the vertical placement of excess floor area is itself a violation. The Director’s logic invents a brand new metric—location—that appears nowhere in §§ 18.70.080, 18.70.090, and 18.70.100. Under the plain meaning rule, his attempt to graft new terms into existing code should be rejected. See Cnty. of Sacramento v. P. Gas & Elec. Co., 238 Cal. Rptr. 305, 311 (Cal. App. 3d Dist. 1987) (“Where the language is plain and admits of no more than one meaning, the duty of interpretation does not arise, and the rules which are to aid doubtful meanings need no discussion.”) (quotation omitted); see also Franklin v. Appel, 10 Cal. Rptr. 2d 759, 765 (Cal. App. 2d Dist. 1992) (“The court will not, under the guise of construction, 4 In his Determination, the Director cites in support of his interpretation the 2015 Council’s consideration of an amendment to a different provision of the Code, section 18.18.120. This provision of the Code is not at issue here and relates to commercial buildings in the Palo Alto Commercial District. (Determination at 3). The proceedings referenced by the Director related to a proposed amendment to the Code and not an interpretation of it. The fact that the Planning Department recognized in 2015 that it needed to amend the Code to apply to relocated space as to commercial buildings in the Commercial District underscores that the Department would need to do the same here to obtain the outcome the Director seeks. Item 10 Attachment B - Additional Appellant Correspondence, Dated August 3, 2025        Item 10: Staff Report Pg. 30  Packet Pg. 363 of 445  7 rewrite a law, and will not give the words an effect different from the plain and direct import of the terms used.”). Thus, there is no question that our project comports with Section 80. There is also no question that had we submitted our application prior to Ms. Gerhardt’s September 23, 2016 e-mail abruptly reversing its longstanding interpretation without citation to the applicable code text, the project would have been quickly approved. Indeed, during the application process the Planning Department based its rejection of our plan solely on Section 100. It was only in the Determination that the Director first claimed that we do not satisfy Section 80 as well (as noted above in footnote 2, the last-minute citation to Section 80 likely reflects the Director’s growing realization that Section 100 is not in fact applicable to our project). Once again, the Director tries to graft terms into the Planning Code that are simply not there. The Determination claims that Section 80 “is intended to allow the improvement of a noncomplying facility in a manner unrelated to the particular degree or manner of noncompliance.” (Determination at 2, emphasis added). But the Code uses the term “affect” not “unrelated.” Our home does not affect the degree of noncompliance because it does not add to it in any respect. Here as well the Director must apply the Code as written and not language that the Director apparently wishes it contained. While we appreciate the Department’s commitment to approve our project in the future under a de minimis exception, our project satisfies current code and no such amendment is necessary. Conclusion In sum, and viewing the provisions “holistically” (as the Director purports to do), Section 80 allows “enlargements” of noncomplying facilities provided they do not “affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title.” § 18.70.080 (emphasis added). Section 100 applies when a property owner seeks to replace or reconstruct a non-complying facility or a portion of a non-complying facility. § 18.70.100 (emphasis added). The Department properly recognized this distinction in its interpretation until Ms. Gerhardt’s announcement of a materially different approach, one that was not based on the actual language of the Code and one which constituted a significant and unexplained departure from past practice. With respect to our project, we are proposing an addition that does not affect the degree of non- compliance of our project. We are removing the existing second-floor room and not reconstructing it. As such, Section 80 applies and is satisfied and Section 100 has no application as a matter of law. It is therefore not within the Director’s discretion to deny the application nor is his legal interpretation of provisions of the Code entitled to any degree of deference by the Council (or, if need be, a court). Item 10 Attachment B - Additional Appellant Correspondence, Dated August 3, 2025        Item 10: Staff Report Pg. 31  Packet Pg. 364 of 445  8 Relief Requested The relief we seek is modest: the ability to improve safety and accessibility in our longtime home without being compelled to demolish legally built, character defining portions of the structure. Timely intervention will spare everyone protracted appeals and public controversy, restore trust in the permitting system, and align City practice with the letter of its own ordinances. My wife and I respectfully request that the Council reverse the Director’s May 8 determination and find that our remodel complies with § 18.70.080 and that § 18.70.100 does not apply and direct staff to issue ministerial approvals forthwith. We are available to answer any questions or provide supplemental material at the Council’s request. Sincerely, /s/ Joseph and Colleen Petersen Owners / Applicants 3886 Magnolia Drive, Palo Alto, California 94306 (917) 859 9680 jpetersen@ktslaw.com Item 10 Attachment B - Additional Appellant Correspondence, Dated August 3, 2025        Item 10: Staff Report Pg. 32  Packet Pg. 365 of 445  9 Appendix Relevant Provisions of the Palo Alto Municipal Code 18.70.100 Noncomplying facility - Replacement. A noncomplying facility which is damaged or destroyed by any means except ordinary wear and tear and depreciation may be reconstructed only as a complying facility, except as follows: (a) When the damage or destruction of a noncomplying facility affects only a portion of the facility that did not constitute or contribute to the noncompliance, said portion may be repaired or reconstructed to its previous configuration. (b) When the damage or destruction of a noncomplying facility affects a portion of the facility that constituted or contributed to the noncompliance, any replacement or reconstruction to such damaged portion shall be accomplished in such manner as not to reinstate the noncompliance or degree of noncompliance caused by the destroyed or damaged portion of the facility, and otherwise in full compliance with this title; however, if the cost to replace or reconstruct the noncomplying portion of the facility to its previous configuration does not exceed fifty percent of the total cost to replace or reconstruct the facility in conformance with this subsection, then the damaged noncomplying portion may be replaced or reconstructed to its previous configuration. In no event shall such replacement or construction create, cause, or increase any noncompliance with the requirements of this title. (c) Notwithstanding subsections (a) and (b) hereof, a noncomplying facility in the commercial CS, CN and CC zones and the industrial MOR, ROLM, RP and GM districts, except for those areas designated as special study areas, existing on August 1, 1989, which when built was a complying facility, shall be permitted to be remodeled, improved or replaced in accordance with applicable site development regulations other than floor area ratio, provided that any such remodeling, improvement or replacement shall not result in increased floor area. (d) Notwithstanding subsections (a), (b) and (c) hereof, a noncomplying facility housing a conforming use in the R-1 and RE zones, which when built was a complying facility, which is damaged or destroyed by non-willful means (i.e., acts of God) shall be permitted to be replaced, on the same site, and in its previous configuration, without necessity to comply with the current site development regulations, provided that any such replacement shall not result in increased floor area, height, length or any other increase in the size of the facility. (e) Except as otherwise provided in this section with regard to replacement or reconstruction of a portion of a facility to its previous noncomplying condition, all reconstruction shall be subject to all applicable laws, regulations, and procedures otherwise governing construction on the site at the time said construction is undertaken. (Ord. 5381 § 7, 2016: Ord. 4102 § 1 (part), 1992: Ord. 4016 § 46, 1991: Ord. 3905 § 18, 1989: Ord. 3890 § 21, 1989: Ord. 3048 (part), 1978) 18.70.080 Noncomplying facility - Enlargement. (a) Except as specifically permitted by subsections (b) and (c) hereof or by Section 18.12.050(a), no enlargement, expansion, or other addition or improvement to a noncomplying facility shall be permitted which increases the noncompliance. This section shall not be construed to prohibit enlargement or improvement of a facility, otherwise permitted by this title, which does not affect the particular degree of or manner in which the facility does not comply with one or more provisions of this title. Item 10 Attachment B - Additional Appellant Correspondence, Dated August 3, 2025        Item 10: Staff Report Pg. 33  Packet Pg. 366 of 445  10 (b) Except in areas designated as special study areas, the director of planning and development services may permit minor additions of floor area to noncomplying facilities in the commercial CC, CS and CN zones and in the industrial MOR, ROLM, RP and GM districts, subject to applicable site development regulations, for purposes of on-site employee amenities, resource conservation, or code compliance, upon the determination that such minor additions will not, of themselves, generate substantial additional employment. Such additions may include, but not be limited to, the following: (1) Area designed and used solely for providing on-site services to employees of the facility, such as recreational facilities, credit unions, cafeterias and day care facilities; (2) Area designated for resource conservation, such as trash compactors, recycling and thermal storage facilities; and (3) Area designed and required for hazardous materials storage facilities, handicapped access, and seismic upgrades. (Ord. 5494 § 3, 2020: Ord. 5381 § 7, 2016: Ord. 5373 § 22 (part), 2016: Ord. 3890 § 20, 1989: Ord. 3683 § 18, 1986: Ord. 3048 (part), 1978) Item 10 Attachment B - Additional Appellant Correspondence, Dated August 3, 2025        Item 10: Staff Report Pg. 34  Packet Pg. 367 of 445  11 Item 10 Attachment B - Additional Appellant Correspondence, Dated August 3, 2025        Item 10: Staff Report Pg. 35  Packet Pg. 368 of 445  City Council Staff Report From: City Manager Report Type: ACTION ITEM Lead Department: Utilities Meeting Date: September 15, 2025 Report #:2501-4048 TITLE Approval of a Third Phase Agreement with Northern California Power Agency for the Purchase of Battery Energy Storage Capacity from Trolley Pass Project LLC, over a Term of up to 20 Years for a Total Not to Exceed Amount of $161.7 Million; CEQA status: not a project under CEQA Guidelines sections 15378(a), (b)(5) RECOMMENDATION The Utilities Advisory Commission (UAC) and staff recommend that the City Council: 1. Authorize the City Manager, or their designee, to execute a Third Phase Agreement (Attachment A) with the Northern California Power Agency (NCPA) to purchase the output of a 50-megawatt (MW) share of a grid-connected battery energy storage system (BESS) owned by Trolley Pass Project LLC, a subsidiary of Aypa Power Development (Aypa), over a period of 20 years, at a total cost not to exceed $161.7 million; 2. Authorize the City Manager, or their designee, to execute on behalf of the City all related documents or agreements necessary to administer the Third Phase Agreement that are consistent with the Palo Alto Municipal Code and City Council-approved policies, including, but not limited to, collateral assignment agreements; and take any and all actions as are necessary or advisable to implement and administer the Third Phase Agreement; and, 3.Authorize the City Manager, or their designee, to approve and execute amendments to the Third Phase Agreement, as may be required from time to time, so long as the contract price and length of the agreement remain unchanged. EXECUTIVE SUMMARY Through a Request for Proposals (RFP) recently conducted by NCPA, the City can enter into an agreement to purchase energy storage capacity from Aypa's Trolley BESS Project. This agreement is for a 50 MW share of a grid-connected battery energy storage system (BESS) over 20 years, at a cost not to exceed $161.7 million. The project is expected to begin operations in June 2029. Item 11 Item 11 Staff Report        Item 11: Staff Report Pg. 1  Packet Pg. 369 of 445  The proposed contract is intended to help the City ensure continued compliance with its resource adequacy (RA) capacity procurement obligations and to provide a financial hedge against the market price exposure created by the solar resources in the City’s supply portfolio. The recommendation aligns with the City's 2023 Integrated Resource Plan (IRP) and will help satisfy requirements under Assembly Bill (AB) 2514 regarding energy storage procurement. BACKGROUND 1 1 The City’s most recent AB 2514 Energy Storage Report (Staff Report 12142, April 2021) found that “neither energy storage within the City nor on the transmission system [is] cost effective for the utility or its customers as a whole,” and therefore the City declined to establish an energy storage procurement target at the time. However, it also noted that staff “will continue to monitor this rapidly maturing space and continue looking for specific projects which by virtue of their location could provide extraordinary resiliency, lower carbon emissions, and/or lower distribution system costs,” and that staff will evaluate utility-scale storage proposals and “will move forward with competitive projects that complement CPAU’s existing supply portfolio.” This report serves as an update to this 2021 report’s analysis on the cost-effectiveness of utility-scale energy storage resources, with staff now finding them to provide a net benefit to the City. Item 11 Item 11 Staff Report        Item 11: Staff Report Pg. 2  Packet Pg. 370 of 445  Figure 1: Actual and Projected Load Compared to 2023 IRP Load Projections RA Requirements In response to the severe electricity shortages, rolling blackouts, and increasing wholesale electricity prices that gripped the state during the energy crisis of 2000-2001, in 2004 California adopted an official RA program. The purpose of the program is to ensure the safe and reliable operation of the electric grid by requiring utilities to procure and maintain sufficient generating capacity – including from BESS facilities – to meet statewide peak demand plus a planning reserve margin (currently around 15%). While the City currently meets its system RA obligations, approximately 50 MW of RA capacity from its largest hydroelectric resource is at risk starting as early as 2027 due to potential regulatory changes. The Market for Energy Storage and Renewable Energy in California California's renewable energy and storage market has evolved significantly over the past decade due to shifting state and federal policies. While solar and storage prices steadily declined from 2010 to 2020, they have begun to increase in recent years. This market shift is attributable to: (a) strong demand driven by the state's ambitious procurement requirements for renewable energy, RA, and storage; (b) pandemic-related supply chain issues and inflation; and (c) recent volatility in federal trade policy and uncertainty surrounding future federal tax incentives for renewable energy and storage projects. In 2022, Congress passed the Inflation Reduction Act (IRA), which provided generous benefits to developers of renewable energy and storage projects, and which extended those benefits into the 2030s. However, in July 2025 Congress passed a wide-ranging domestic policy law that Item 11 Item 11 Staff Report        Item 11: Staff Report Pg. 3  Packet Pg. 371 of 445  dramatically scales back those benefits for solar and wind projects and adds new restrictions on the incentives for energy storage and other renewable resources. Furthermore, the U.S. has recently imposed a shifting series of tariffs on imports coming from most countries, including very steep ones on goods coming from China – which is a major producer of solar cells, lithium- ion batteries, as well as the raw materials and components that go into those products. This unprecedented level of policy uncertainty facing the renewable energy and storage industry in the U.S. has caused many project developers to put their development efforts on hold and has led others to raise the prices of the projects they are marketing. 3, along with approximately 30,000 MW of behind-the-meter solar capacity.4 The state’s BESS capacity has also exploded, going from just 771 MW in 2019 to over 15,000 MW operating today.5 ANALYSIS 6 issued an RFP for new renewable and/or carbon-free generating resources and energy-storage resources.7 By the submission deadline in April 2024, NCPA had received a total of about 30 proposals, all of which were for solar and/or BESS facilities. Palo Alto staff evaluated these proposals, primarily based on the economic value provided by each project relative to its cost, narrowing the list down to a handful of projects. During the evaluation, some projects were removed from consideration after securing contracts with other buyers. Ultimately, Palo Alto staff expressed strong interest in the Trolley contract, as well as a portion of a 200 MW solar-plus-storage project located in Fresno County. Unfortunately, after months of negotiations between the project developer and NCPA and member utility staff, the solar-plus- storage discussions broke down due to an inability to agree to terms related to the risks associated with interconnection delays and tariff price risk. As a result, staff will pursue other avenues in the coming months for procuring additional renewable energy capacity. 3 Energy Information Administration: https://www.eia.gov/state/analysis.php?sid=CA 4 Solar Energy Industries Association: https://seia.org/wp-content/uploads/2025/03/California-3.pdf 5 Governor’s office: https://www.gov.ca.gov/2025/05/19/since-governor-newsom-took-office-californias-battery- storage-has-increased-1944-and-just-achieved-a-major-milestone/ 6 NCPA is a not-for-profit Joint Powers Agency whose membership includes municipalities, a rural electric cooperative, and other publicly owned entities, including the City of Palo Alto. The mission of NCPA is to provide members cost effective wholesale power, energy-related services, and advocacy on behalf of public power consumers through joint action. 7 Section 2.30.340(d) of the City’s Municipal Code permits the City to procure wholesale utility commodities and services through public agencies, including NCPA. Item 11 Item 11 Staff Report        Item 11: Staff Report Pg. 4  Packet Pg. 372 of 445  City of Rancho Cucamonga. The project is at an advanced stage of development, with an executed interconnection agreement (with Southern California Edison), and a Full Capacity Deliverability Status (FCDS) designation from the California Independent System Operator (CAISO), allowing its capacity to count towards RA obligations. It is expected to begin operating in June 2029. 13 Despite the significant increase in California’s BESS capacity over the last several years, solar generation capacity continues to grow at an even faster rate, suggesting that this value opportunity is likely to persist or even expand in the future. 13 The Trolley BESS project will be scheduled by NCPA in a way that maximizes the total net revenue it produces – whether in the ancillary services (regulation up/down) market, or in the energy market. Most likely it will be used in the “energy arbitrage” manner described here, charging during the lowest priced hours of the day and discharging during the highest priced hours. It will not explicitly operate as a “load-following” resource (i.e., one that attempts to balance the City’s load and resource supplies), because the City’s portfolio has a high concentration of solar generation it tends to have surplus supplies during the lowest priced hours of the day, and therefore the BESS will likely have the effect of balancing the City’s load and generation supplies. Item 11 Item 11 Staff Report        Item 11: Staff Report Pg. 5  Packet Pg. 373 of 445  Accurately predicting the net value of any 15- or 20-year contract is challenging due to significant uncertainties in future energy and RA prices, which are influenced by macroeconomic conditions, regulations, and regional power market dynamics. Furthermore, the Trolley contract has added economic valuation uncertainty due to the potential for a slight contract price increase discussed above even after execution. Nonetheless, staff anticipates the resource will be a beneficial long- term investment for the City. Item 11 Item 11 Staff Report        Item 11: Staff Report Pg. 6  Packet Pg. 374 of 445  Figure 2: Projected Annual Load and Energy Supplies with Trolley As a load-serving entity within the CAISO balancing authority, the City must comply with Resource Adequacy (RA) market obligations. CAISO RA requirements specify the annual and monthly generating capacity levels the City must procure for local, system, and flexible RA needs – which are based on the City’s projected peak load plus a planning reserve margin (PRM). The City currently satisfies its RA requirements by leveraging its own resources, participating in NCPA's Capacity Pool Program, and engaging in bilateral transactions with other market participants. The BESS capacity from the Trolley contract will contribute to the City's system RA requirements. Figures 3 below indicates that the City currently has system RA surpluses of approximately 50 MW per month. The recommended share of the Trolley contract would increase the City’s system RA surplus position by 50 MW. Note, however, that roughly half of the RA capacity that the City receives from its largest single resource (representing about 50 MW from the Western Base Resource hydroelectric contract) is at risk as early as 2027 due to potential regulatory changes. Item 11 Item 11 Staff Report        Item 11: Staff Report Pg. 7  Packet Pg. 375 of 445  Figure 3: Annual Average System RA Balance Forecast with Trolley Consistency with IRP’s Recommended Plan In 2023, in accordance with state law, the City adopted an Integrated Resource Plan (IRP) that included an extensive analysis of its future load and resource needs. The IRP’s Recommended Plan called for acquiring 25 MW of new solar generation capacity in both 2030 and 2031 (followed by additional volumes in the late 2030s and early 2040s), plus some BESS capacity in the early 2040s15. Approving the Trolley contract aligns with the IRP’s recommendations, although the BESS capacity will come online about a decade sooner than planned. This deviation is justified by the potential loss of significant RA capacity from the City’s existing supply portfolio—a possibility that was not apparent in 2023 – and the strong financial merit of the Trolley contract. Also, in the IRP staff noted that an important goal in new resource acquisitions was to diversify the City’s supply portfolio and reduce its seasonal and intraday market price exposure. Given that Palo Alto’s current electric supply portfolio lacks large-scale energy storage capacity, the recommended addition of 50 MW of BESS capacity will significantly diversify the City’s resource mix. And with a significant concentration of solar resources in both the City's supply portfolio and the broader CAISO grid, the addition of this BESS capacity will allow NCPA to balance the City’s load while substantially mitigating the City's exposure to daily low-priced hours. 15 Specifically, the Recommended Plan included 25 MW of 4-hour BESS capacity in 2041, 25 MW of 10-hour BESS capacity in 2043, and 25 MW of 8-hour BESS capacity in 2045. Item 11 Item 11 Staff Report        Item 11: Staff Report Pg. 8  Packet Pg. 376 of 445  Risk Management Assessment 17, which would protect the City and the other offtakers in a scenario where the facility is unable to produce the contracted output and the market price of the replacement storage capacity is higher than the price of this resource. And crucially, under the terms of the proposed contract the City is not at risk for paying for output that is not delivered. The City will only be obligated to pay if Trolley’s capacity is available to be used for RA compliance and energy arbitrage purposes. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW 17 The collateral requirement will initially be $20 million for NCPA’s share of the contract, increasing to $40 million on January 1, 2028. Once the project begins operating, the collateral requirement will be $32 million throughout the term of the agreement. Item 11 Item 11 Staff Report        Item 11: Staff Report Pg. 9  Packet Pg. 377 of 445  to CEQA Guidelines sections 15378(a) since Palo Alto’s purchase of capacity and storage under this Agreement has no potential to result in a physical change to the environment, and 15378(b)(5), since entering the agreement is an administrative action of government that will not result in physical changes to the environment. The Seller, Trolley Pass Project, LLC, is responsible for obtaining CEQA approvals from Rancho Cucamonga, the Lead Agency, under Article 13 of the Agreement. The City has no obligation to make any purchases under the Agreement until CEQA approvals for the underlying Project are complete, the judicial review period for CEQA challenges has passed, or such challenges, if any, have been dismissed. ATTACHMENTS APPROVED BY: Item 11 Item 11 Staff Report        Item 11: Staff Report Pg. 10  Packet Pg. 378 of 445  THIRD PHASE AGREEMENT FOR ENERGY STORAGE SERVICE AGREEMENT WITH TROLLEY PASS PROJECT LLC Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 11  Packet Pg. 379 of 445  i TABLE OF CONTENTS Section 1. Definitions.....................................................................................................3 Section 2. Purpose........................................................................................................10 Section 3. Sale and Purchase of Product...................Error! Bookmark not defined. Section 4. Billing and Payments ................................................................................11 Section 5. Security Deposit Administration.............................................................14 Section 6. Cooperation and Further Assurances.....................................................19 Section 7. Participant Covenants and Defaults .......................................................19 Section 8. Administration of Agreement..................................................................23 Section 9. Transfer of Rights by Participants...........................................................25 Section 10. Term and Termination..............................................................................26 Section 11. Withdrawal of Participants ......................................................................26 Section 12. Settlement of Disputes and Arbitration..................................................27 Section 13. Miscellaneous.............................................................................................27 EXHIBIT A. Project Participation Percentages ...........................................................40 EXHIBIT B. Eenergy Storage Services Agreement.....Error! Bookmark not defined. Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 12  Packet Pg. 380 of 445  1 This THIRD PHASE AGREEMENT (“this Agreement”) is dated as of ______________, 20__ by and among the Northern California Power Agency, a joint powers agency of the State of California (“NCPA”), and the signatories to this Agreement other than NCPA (“Participants”). NCPA and the Participants are referred to herein individually as a “Party” and collectively as the “Parties”. RECITALS A. NCPA has heretofore been duly established as a public agency pursuant to the Joint Exercise of Powers Act of the Government Code of the State of California and, among other things, is authorized to acquire, construct, finance, and operate buildings, works, facilities, and improvements for the generation and transmission of electric capacity and energy for resale. B. Each of the Participants is a signatory to the Joint Powers Agreement which created NCPA and therefore is a Member. C. Each of the Participants to this Agreement have executed the Amended and Restated Facilities Agreement, dated October 1, 2014, which establishes the framework under which Project Agreements are created for the development, design, financing, construction, and operation of specific NCPA Projects. Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 13  Packet Pg. 381 of 445  2 D. The Participants desire NCPA to enter into an Energy Storage Service Agreement (“ESSA”) with Trolley Pass Project LLC (“Seller”), to purchase the Product for the benefit of the Participants’ customers. E. Each Participant is authorized by its Constitutive Documents to obtain the Product for its present or future requirements, through contracts with NCPA or otherwise. F. To enable NCPA to enter into the ESSA on behalf of the Participants, pursuant to the terms and conditions of the Amended and Restated Facilities Agreement, NCPA and the Participants wish to enter into this Agreement to provide all means necessary for NCPA to fulfill obligations incurred on behalf of NCPA and the Participants pursuant to the ESSA, and to enable and obligate the Participants to take delivery of and pay for the Product and to pay NCPA for all costs it incurs for undertaking the foregoing activities. G. Upon full execution of this Agreement, NCPA will enter into the ESSA on behalf of the Participants, and such ESSA shall be deemed a NCPA Project by the Commission. H. Each of the Parties intends to observe the provisions of this Agreement in good faith and shall cooperate with all other Parties in order to achieve the full benefits of joint action. I. The Parties desire to equitably allocate costs of NCPA’s provision of services under this Agreement among the Participants. Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 14  Packet Pg. 382 of 445  3 J. The Participants further desire, insofar as possible, to insulate other Members who are not Participants, from risks inherent in the services and transactions undertaken on behalf of the Participants pursuant to this Agreement. NOW, THEREFORE, the Parties agree as follows: Section 1. Definitions. 1.1 Definitions. Whenever used in this Agreement (including the Recitals hereto), the following terms shall have the following respective meanings, provided, capitalized terms used in this Agreement (including the Recitals hereto) that are not defined in Section 1 of this Agreement shall have the meaning indicated in Section 1 of the Power Management and Administrative Services Agreement, dated October 1, 2014: 1.1.1 “Actual Contract Price Increase” has the meaning set forth in Section 1.1 of the ESSA. 1.1.2 “Administrative Services Costs” means that portion of the NCPA administrative, general and occupancy costs and expenses, including those costs and expenses associated with the operations, direction and supervision of the general affairs and activities of NCPA, general management, treasury operations, accounting, budgeting, payroll, human resources, information technology, facilities management, salaries and wages (including retirement benefits) of employees, facility operation and maintenance costs, taxes and payments in lieu of taxes (if any), insurance premiums, fees for legal, engineering, financial and other services, power management services, Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 15  Packet Pg. 383 of 445  4 general settlement and billing services and general risk management costs, that are charged directly or apportioned to the provision of services under this Agreement. Administrative Services Costs as separately defined herein and used in the context of this Agreement is different and distinct from the term Administrative Services Costs as defined in Section 1 of the Power Management and Administrative Services Agreement. 1.1.3 “Agreement” means this Third Phase Agreement, including all Exhibits attached hereto. 1.1.4 "All Resources Bill” has the meaning set forth in the Power Management and Administrative Services Agreement. 1.1.5 “CAISO” means the California Independent System Operator Corporation, or its functional successor. 1.1.6 “CAISO Tariff” means the duly authorized tariff, rules, protocols and other requirements of the CAISO, as amended from time to time. 1.1.7 “Capacity Damages” has the meaning set forth in Section 1.1 of the ESSA. 1.1.8 “Change in Tax Law” has the meaning set forth in Section 1.1 of the ESSA. 1.1.9 “Commercial Operation” has the meaning set forth in Section 1.1 of the ESSA. Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 16  Packet Pg. 384 of 445  5 1.1.10 “Commercial Operation Date” has the meaning set forth in Section 1.1 of the ESSA. 1.1.11 "Commission” has the meaning set forth in the Power Management and Administrative Services Agreement. 1.1.12 “Constitutive Documents” means, with respect to NCPA, the Joint Powers Agreement and any resolutions or bylaws adopted thereunder with respect to the governance of NCPA, and with respect to each Participant, the California Government Code and other statutory provisions applicable to such Participant, any applicable agreements, charters, contracts, or other documents concerning the formation, operation or decision making of such Participant, including, if applicable, its city charter, and any codes, ordinances, bylaws, and resolutions adopted by such Participant’s governing body. 1.1.13 “Contract Price” has the meaning set forth in Section 1.1 of the ESSA. 1.1.14 “Defaulting Participant” has the meaning set forth in Section 7.2. 1.1.15 “Electric System” has the meaning set forth in the Power Management and Administrative Services Agreement. 1.1.16 “Event of Default” has the meaning set forth in Section 7.2. 1.1.17 “Facility” has the meaning set forth in Section 1.1 of the ESSA. Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 17  Packet Pg. 385 of 445  6 1.1.18 “Final Independent Report” has the meaning set forth in Section 1.1 of the ESSA. 1.1.19 “General Operating Reserve” means the NCPA General Operating Reserve created through resolution of the Commission, as the same may be amended from time to time. 1.1.20 “Initial Independent Report” has the meaning set forth in Section 1.1 of the ESSA. 1.1.21 “Installed Battery Capacity” has the meaning set forth in Section 1.1 of the ESSA. 1.1.22 “MW” means megawatt. 1.1.23 “MWh” means megawatt hour. 1.1.24 “NCPA” has the meaning set forth in the Recitals hereto. 1.1.25 “Participant” has the meaning set forth in the recitals of this Agreement. 1.1.26 “Party” or “Parties” has the meaning set forth in the preamble hereto; provided that “Third Parties” are entities that are not Party to this Agreement. 1.1.27 “Power Management and Administrative Services Agreement” means the NCPA Power Management and Administrative Services Agreement, dated as of October 1, 2014, between NCPA and the Members who are signatories to that agreement by which NCPA provides Power Management and Administrative Services. Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 18  Packet Pg. 386 of 445  7 1.1.28 “Product” has the meaning set forth in Section 1.1 of the ESSA. 1.1.29 “Project” or “ESSA” means the Energy Storage Service Agreement, dated as of ____________, 20__ between NCPA and Seller, under which NCPA, on behalf of the Participants, purchases Product from the Facility located in San Bernardino County, California, consisting of a separately metered 300 MWAC section of a larger battery energy storage facility commonly known as the Trolley Battery Energy Storage Project. Upon final execution of the ESSA, the Project shall be deemed a NCPA Project in accordance with the Amended and Restated Facilities Agreement. The ESSA has been attached to this Agreement as Exhibit B. 1.1.30 “Project Costs” means all costs charged to and paid by NCPA pursuant to the ESSA. 1.1.31 “Project Participation Percentage” has the meaning set forth in the Power Management and Administrative Services Agreement, and are set forth in Exhibit A of this Agreement. 1.1.32 “Proposed Contract Price Increase” has the meaning set forth in Section 1.1 of the ESSA. 1.1.33 “Proposed Contract Price Increase Cap” has the meaning set forth in Section 1.1 of the ESSA. 1.1.34 “Revenue” means , with respect to each Participant, all income, rents, rates, fees, charges, and other moneys derived by the Participant from the Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 19  Packet Pg. 387 of 445  8 ownership or operation of its Electric System, including, without limiting the generality of the foregoing: (a) all income, rents, rates, fees, charges or other moneys derived from the sale, furnishing and supplying of electric capacity and energy and other services, facilities, and commodities sold, furnished, or supplied through the facilities of its Electric System; (b) the earnings on and income derived from the investment of such income, rents, rates, fees, charges or other moneys to the extent that the use of such earnings and income is limited by or pursuant to law to its Electric System; (c) the proceeds derived by the Participant directly or indirectly from the sale, lease or other disposition of all or a part of the Electric System; and (d) the proceeds derived by Participant directly or indirectly from the consignment and sale of freely allocated greenhouse gas compliance instruments into periodic auctions administered by the State of California under the California Cap-and-Trade Program, provided that such proceeds are a permitted use of auction proceeds, but the term Revenues shall not include (i) customers' deposits or any other deposits subject to refund until such deposits have become the property of the Participant or (ii) contributions from customers for the payment of costs of construction of facilities to serve them. 1.1.35 “Scheduling Protocols” means the applicable provisions of the Amended and Restated Scheduling Coordination Program Agreement, and any other contractual or other arrangements between NCPA and the Participants concerning the scheduling, delivery and metering of the ESSA. Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 20  Packet Pg. 388 of 445  9 1.1.36 “Security Deposit” means the account established by NCPA and funded by the Participants in accordance with Section 5, the funds of which are available for use by NCPA in accordance with the terms and conditions hereof. 1.1.37 “Seller” means Trolley Pass Project LLC, as set forth in Recital D of this Agreement, or as otherwise set forth in the ESSA. 1.1.38 “Storage Contract Capacity” has the meaning set forth in Section 1.1 of the ESSA. 1.1.39 “Supply Chain Event” has the meaning set forth in Section 1.1 of in the ESSA. 1.1.40 “Term” has the meaning set forth in Section 10. 1.1.41 “Third Party” means an entity (including a Member) that is not Party to this Agreement. 1.2 Rules of Interpretation. As used in this Agreement (including the Recitals hereto), unless in any such case the context requires otherwise: The terms “herein,” “hereto,” “herewith” and “hereof” are references to this Agreement taken as a whole and not to any particular provision; the term “include,” “includes” or “including” shall mean “including, for example and without limitation;” and references to a “Section,” “subsection,” “clause,” “Appendix”, “Schedule”, or “Exhibit” shall mean a Section, subsection, clause, Appendix, Schedule or Exhibit of this Agreement, as the case may be. All references to a given agreement, instrument, tariff or other document, or law, Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 21  Packet Pg. 389 of 445  10 regulation or ordinance shall be a reference to that agreement, instrument, tariff or other document, or law, regulation or ordinance as such now exists and as may be amended from time to time, or its successor. A reference to a “person” includes any individual, partnership, firm, company, corporation, joint venture, trust, association, organization or other entity, in each case whether or not having a separate legal personality and includes its successors and permitted assigns. A reference to a “day” shall mean a Calendar Day unless otherwise specified. The singular shall include the plural and the masculine shall include the feminine, and vice versa. Section 1. Purpose. The purpose of this Agreement is to: (i) set forth the terms and conditions under which NCPA shall enter into the ESSA on behalf of the Participants, (ii) authorize NCPA, acting on behalf of the Participants, to engage in all activities related to that basic purpose, and (iii) specify the rights and obligations of NCPA and the Participants with respect to the ESSA. Section 2. Sale and Purchase of Product. By executing this Agreement, each Participant acknowledges and agrees to be bound by the terms and conditions of the Agreement, and that the Agreement is written as a “take-or-pay” agreement. Any Product delivered to NCPA under the ESSA shall be delivered to each Participant in proportion to such Participant’s Project Participation Percentage as set forth in Exhibit A, and each Participant shall accept and pay for its respective percentage of such Product. To the extent a Participant is unable to accept such deliveries in full, NCPA shall dispose of such Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 22  Packet Pg. 390 of 445  11 surplus in its sole discretion, in such a manner to attempt to maximize Participant value and that Participant shall reimburse to NCPA any costs incurred by NCPA in doing so. Notwithstanding the above, NCPA may allocate Product procured through the ESSA among the Participants in such percentages as NCPA may, in its reasonable discretion, determine are necessary, desirable, or appropriate, in order to accommodate Participant transfer rights pursuant to Section 9. Section 4. Billing and Payments Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 23  Packet Pg. 391 of 445  12 costs for services provided in accordance with this Agreement and the Amended and Restated Facilities Agreement. Such invoice may be either the All Resources Bill or separate special invoice, as determined by NCPA. At NCPA’s discretion, invoices may be issued to Participants using electronic media or physical distribution. Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 24  Packet Pg. 392 of 445  13 thirty (30) Calendar Days after the Participant has disputed it, then the General Manager shall promptly submit the dispute to the Commission for resolution. If the Commission and the Participant fail to agree on the accuracy of a disputed invoice within sixty (60) Calendar Days after its submission to the Commission, then the dispute may then be resolved under the mediation and arbitration procedures set forth in Section 12 of this Agreement; provided, however, that prior to resorting to either mediation or arbitration proceedings, the full amount of the disputed invoice must be paid by the Participant. Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 25  Packet Pg. 393 of 445  14 maintained by NCPA pursuant to this Agreement at any reasonable, mutually agreed upon time. Section 5. Security Deposit Administration 5.1 Security Deposit Requirements. Each Participant agrees that any funds deposited at NCPA to satisfy Participant’s Security Deposit requirements pursuant to this Agreement shall be irrevocably committed and held by NCPA in the General Operating Reserve, and that such funds may be used by NCPA in accordance with Section 5.1.3. Each Participant’s Security Deposit will be accounted separately from and in addition to any other security accounts or deposits maintained pursuant to any other agreement between NCPA and the Participant, or any other such security account or deposits required of Members. In connection with fulfilling the Security Deposit requirements of this Agreement, Participant may elect to use its uncommitted funds held in the General Operating Reserve to satisfy in whole or in part its Security Deposit required under Section 5. If Participant chooses to satisfy in whole or in part its security requirements using its uncommitted funds held in the General Operating Reserve, then Participant is required to execute and deliver to NCPA an Irrevocable Letter of Direction, directing NCPA to utilize Participant’s uncommitted General Operating Reserve funds for such purposes, and the designated funds will thereafter be irrevocably committed and held by NCPA to satisfy the requirements of this Agreement. Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 26  Packet Pg. 394 of 445  15 5.1.1 Initial Amounts. No later than ninety (90) day prior to the Commercial Operation Date, each Participant shall ensure that sufficient Security Deposit funds have been deposited with and are held by NCPA in an amount not greater than the highest three (3) months of estimated Project Costs, as estimated by NCPA. Such Security Deposit requirement may be satisfied by Participant in whole or part either in cash, through irrevocable commitment of its uncommitted funds held in the General Operating Reserve in accordance with Section 5.1, or through a clean, irrevocable letter of credit satisfactory to NCPA’s General Manager. 5.1.2 Subsequent Deposits. Periodically, and at least quarterly, NCPA shall review and revise its estimate of Project Costs for which Participant shall be obligated to pay under this Agreement. Following such review, NCPA shall determine whether each Participant has a sufficient Security Deposit balance at NCPA. To the extent that any Participant’s Security Deposit balance is greater than one hundred and ten percent (110%) of the amount required herein, NCPA shall credit such amount as soon as practicable to the Participant’s next following All Resources Bill, or by separate special invoice. To the extent that any Participant’s Security Deposit balance is less than ninety percent (90%) of the amount required herein, NCPA shall add such amount as soon as practicable to such Participant’s next All Resources Bill, or as necessary, to a special invoice to be paid by Participant upon receipt. Credits or additions shall not be made to Participants who satisfy these Security Deposit requirements in whole through Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 27  Packet Pg. 395 of 445  16 the use of a letter of credit; provided, that the amount of the letter of credit shall be adjusted, as required from time to time, in a like manner to assure an amount not to exceed the highest three (3) months of estimated Project Costs is available to NCPA, as determined by NCPA. 5.1.3 Use of Security Deposit Funds. NCPA may use any and all Security Deposit funds held by NCPA (or utilize a letter of credit provided in lieu thereof) to pay any costs it incurs hereunder, including making payments to Seller, without regard to any individual Participant’s Security Deposit balance or proportionate share of Project Costs, and irrespective of whether NCPA has issued an All Resources Bill or special invoice for such costs to the Participants or whether a Participant has made timely payments of All Resources Bills or special invoices. Should Participant have satisfied its Security Deposit requirements in whole or part through a letter of credit, NCPA may draw on such letter of credit to satisfy Participant’s obligations hereunder at NCPA’s sole discretion. Notwithstanding the foregoing, if any Participant fails to pay any costs incurred by NCPA pursuant to this Agreement, NCPA shall first use that non-paying Participant’s Security Deposit and shall not use any other Participants’ Security Deposit until such non-paying Participant’s Security Deposit has been exhausted. 5.1.4 Accounting. If Security Deposit funds or a letter of credit are used by NCPA to pay any costs it incurs hereunder as described in Section 5.1.3, then NCPA Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 28  Packet Pg. 396 of 445  17 will maintain a detailed accounting of each Participant’s shares of funds withdrawn, and upon the collection of all or a part of such withdrawn funds, NCPA will credit back to each non-defaulting Participant the funds collected in proportion to such non- defaulting Participant’s share of funds initially withdrawn. 5.1.5 Emergency Additions. In the event that funds are withdrawn pursuant to Section 5.1.3, or if the Security Deposit held by NCPA is otherwise insufficient to allow for NCPA to pay any invoice, demand, request for further assurances by Seller, or claims, NCPA shall notify all Participants of the deficiency. In conjunction with such notice, NCPA shall send a special or emergency assessment invoice to the Participant or Participants that caused or are otherwise responsible for the deficiency. Each Participant of such an invoice shall pay to NCPA such assessment when and if assessed by NCPA within two (2) Business Days of the invoice date of the assessment, or shall consent to and direct NCPA to draw on any existing letter of credit Participant has established for such purposes. In the event that the Participant or Participants that caused or are otherwise responsible for the deficiency cannot, does not or will not pay to NCPA the special or emergency assessment within two (2) Business Days after the invoice date, NCPA shall immediately submit a special or emergency invoice to all remaining Participants, and such remaining Participants shall pay to NCPA such assessment within two (2) Business Days after the invoice date of Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 29  Packet Pg. 397 of 445  18 the assessment, or shall consent to and direct NCPA to draw on any existing letter of credit that Participant has established for such purposes. 5.1.6 Security Deposit Interest. NCPA shall maintain a detailed accounting of each Participant’s Security Deposits, and withdrawals of such funds, held by NCPA. Security Deposits held by NCPA shall be invested by NCPA in accordance with the General Operating Reserve policies and investment policies adopted by the NCPA Commission. Interest earned on the Security Deposit funds shall be proportionately credited to the Participants in accordance with their weighted average balances held therein. Any Security Deposit losses caused by early termination of investments shall be allocated among the Participants in accordance with the General Operating Reserve provisions and guidelines approved by the Commission, as the same may be amended from time to time; provided, however, to the extent that either the General Operating Reserve provisions and guidelines do not apply or the Security Deposit is not adequate to cover the losses, then such losses shall be allocated among the Participants in accordance with their proportionate Security Deposit balances. 5.1.7 Return of Funds. Upon termination or a permitted withdrawal of a Participant in accordance with this Agreement, the affected Participant may apply to NCPA for the return of their share of Security Deposit funds ninety (90) days after the effective date of such termination or withdrawal. However, NCPA shall, in its sole but Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 30  Packet Pg. 398 of 445  19 reasonable discretion, as determined by the NCPA General Manager, estimate the then outstanding liabilities of the Participant, including any estimated contingent liabilities and shall retain all such funds, if any, until all such liabilities have been fully paid or otherwise satisfied in full. After all such liabilities have been satisfied in full, as determined by NCPA’s General Manager, any remaining balance of the Participant’s share of the Security Deposit will be refunded to the Participant within sixty (60) days thereafter. Section 6. Cooperation and Further Assurances. Each of the Parties agree to provide such information, execute and deliver any instruments and documents and to take such other actions as may be necessary or reasonably requested by any other Party which are consistent with the provisions of this Agreement and which do not involve the assumption of obligations other than those provided for in this Agreement, in order to give full effect to this Agreement and to carry out the intent of this Agreement. The Parties agree to cooperate and act in good faith in connection with obtaining any credit support required in order to satisfy the requirements of this Agreement. Section 7. Participant Covenants and Defaults 7.1 Each Participant covenants and agrees: (i) to make payments to NCPA, from its Electric System Revenues, of its obligations under this Agreement as an operating expense of its Electric System; (ii) to fix the rates and charges for services provided by its Electric System, so that it will at all times have sufficient Revenues to meet the obligations Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 31  Packet Pg. 399 of 445  20 of this Agreement, including the payment obligations; (iii) to make all such payments due NCPA under this Agreement whether or not there is an interruption in, interference with, or reduction or suspension of services provided under this Agreement, such payments not being subject to any reduction, whether by offset or otherwise, and regardless of whether any reasonable dispute exists; and (iv) to operate its Electric System, and the business in connection therewith, in accordance with Good Utility Practices. Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 32  Packet Pg. 400 of 445  21 (iv) if a Participant is in default or in breach of any of its covenants or obligations under any other agreement with NCPA and such default or breach is not cured within the time periods specified in such agreement. 7.3 Uncontrollable Forces. A Party shall not be considered to be in default in respect of any obligation hereunder if prevented from fulfilling such obligation by reason of Uncontrollable Forces; provided, that in order to be relieved of an Event of Default due to Uncontrollable Forces, a Party affected by an Uncontrollable Force shall: (i) first provide oral notice to the General Manager using telephone communication within two (2) Business Days after the onset of the Uncontrollable Force, and provide subsequent written notice to the General Manager and all other Parties within ten (10) Business Days after the onset of the Uncontrollable Force, describing its nature and extent, the obligations which the Party is unable to fulfill, the anticipated duration of the Uncontrollable Force, and the actions which the Party will undertake so as to remove such disability and be able to fulfill its obligations hereunder; and (ii) use due diligence to place itself in a position to fulfill its obligations hereunder and if unable to fulfill any obligation by reason of an Uncontrollable Force such Party shall exercise due diligence to remove such disability with reasonable dispatch; provided, that nothing in this subsection shall require a Party to settle or compromise a labor dispute. Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 33  Packet Pg. 401 of 445  22 7.4 Cure of an Event of Default. An Event of Default shall be deemed cured only if such default shall be remedied or cured within the time periods specified in Section 7.2 above, as may be applicable, provided, however, upon request of the Defaulting Participant the Commission may waive the default at its sole discretion, where such waiver shall not be unreasonably withheld. 7.5 Remedies in the Event of Uncured Default. Upon the occurrence of an Event of Default which is not cured within the time limits specified in Section 7.2, without limiting other rights or remedies available under this Agreement, at law or in equity, and without constituting or resulting in a waiver, release or estoppel of any right, action or cause of action NCPA may have against the Defaulting Participant, NCPA may take any or all of the following actions: (i) suspend the provision of services under this Agreement to such Defaulting Participant; or (ii) demand that the Defaulting Participant provide further assurances to guarantee the correction of the default, including the collection of a surcharge or increase in electric rates, or such other actions as may be necessary to produce necessary Revenues to correct the default. 7.6 Effect of Suspension. 7.6.1 Generally. The suspension of this Agreement will not terminate, waive, or otherwise discharge any ongoing or undischarged liabilities, credits or Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 34  Packet Pg. 402 of 445  23 obligations arising from this Agreement until such liabilities, credits or obligations are satisfied in full. 7.6.2 Suspension. If performance of all or any portion of this Agreement is suspended by NCPA with respect to a Participant in accordance with subsection 7.5(i), then such Participant shall pay any and all costs incurred by NCPA as a result of such suspension including reasonable attorney’s fees, the fees and expenses of other experts, including auditors and accountants, or other reasonable and necessary costs associated with such suspension and any portion of the Project Costs, scheduling and dispatch costs, and Administrative Services Costs that were not recovered from such Participant as a result of such suspension. Section 8. Administration of Agreement 8.1 Commission. The Commission is responsible for the administration of this Agreement. Each Participant shall be represented by its Commissioner or their designated alternate Commissioner (“Alternate”) pursuant to the Joint Powers Agreement. Each Commissioner shall have authority to act for the Participant represented with respect to matters pertaining to this Agreement. 8.2 Forum. Whenever any action anticipated by this Agreement is required to be jointly taken by the Participants, such action shall be taken at regular or special meetings of the NCPA Commission. Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 35  Packet Pg. 403 of 445  24 8.3 Quorum. For purposes of acting upon matters that relate to administration of this Agreement, a quorum of the Participants shall consist of those Commissioners, or their designated Alternate, representing a numerical majority of the Participants. 8.4 Voting. Each Participant shall have the right to cast one vote with respect to matters pertaining to this Agreement. A unanimous vote of all Participants shall be required for action regarding: (i) any transfer of rights to a Third Party as described in Section 9 of this Agreement; and (ii) for matters related to any of the following actions as provided for in the ESSA: (a) exercising any early termination provisions as set forth in the ESSA, and (b) exercising any assignment rights as set forth in the ESSA. For all other matters pertaining to this Agreement, a majority vote of the Participants shall be required for action. 8.5 Storage Rate Adjustment Event. Section 2.5 of the ESSA permits the Seller to request a Contract Price adjustment from NCPA to address cost increases that Seller incurs as a result of a Change in Tax Law or Supply Chain Event. If the Proposed Contract Price Increase or Actual Contract Price Increase is equal to or less than the Proposed Contract Price Increase Cap, then as further set forth in Section 2.5 of the ESSA, such Proposed Contract Price Increase or Actual Contract Price Increase shall be deemed accepted by the Participants and NCPA, and the parties to the ESSA shall amend the Contract Price in the ESSA. Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 36  Packet Pg. 404 of 445  25 If the Proposed Contract Price Increase and/or Actual Contract Price Increase is greater than the Proposed Contract Price Increase Cap by an amount that is less than or equal to fifteen percent (15.00%) of the original Contract Price, in aggregate, then the NCPA General Manager is hereby delegated authority by the Participants to approve the price increase based on their determination that (1) the Initial Independent Report or Final Independent Report supports the Proposed Contract Price Increase and/or Actual Contract Price Increase, and (2) the ESSA with the Proposed Contract Price Increase and/or Actual Contract Price Increase is still favorable when compared to current market conditions for similar products. The NCPA General Manager shall notify the Commission of the acceptable Proposed Contract Price Increase and/or Actual Contract Price Increase and associated modifications to the ESSA with the foregoing findings, if any, at the next available Commission meeting. If the Proposed Contract Price Increase and/or Actual Contract Price Increase is greater than fifteen percent (15.00%) of the original Contract Price, in aggregate, then the proposed modifications to the ESSA will be brought to the Commission for discussion and further action. Section 9. Transfer of Rights by Participants 9.1 A Participant has the right to make transfers, sales, assignments and exchanges (collectively “transfers(s)”) of any portion of its Project Participation Percentage and rights thereto, subject to the approval provisions in Section 8.4 of this Agreement, provided that the transferee satisfies all applicable criterion in the ESSA. If a Participant Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 37  Packet Pg. 405 of 445  26 desires to transfer a portion or its entire share of the Project for a specific time interval, or permanently, then NCPA will, if requested by such Participant, use its best efforts to transfer that portion of the Participant’s share of the Project. Section 10. Term and Termination. This Agreement shall become effective when it has been duly executed by all Participants, and delivered to and executed by NCPA (the “Effective Date”). NCPA shall notify all Participants in writing of the Effective Date. The Term of this Agreement shall be coterminous with the ESSA, and shall commence on the Effective Date, and shall continue through the term of the ESSA. Section 11. Withdrawal of Participants. No Participant may withdraw from this Agreement except as otherwise provided for herein. Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 38  Packet Pg. 406 of 445  27 Section 12. Settlement of Disputes and Arbitration. The Parties agree to make best efforts to settle all disputes among themselves connected with this Agreement as a matter of normal business under this Agreement. The procedures set forth in Section 10 of the Power Management and Administrative Services Agreement shall apply to all disputes that cannot be settled by the Participants themselves; provided, that the provisions of Section 4.5 shall first apply to all disputes involving invoices prepared by NCPA. Section 13. Miscellaneous Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 39  Packet Pg. 407 of 445  28 Receiving Party to deny or object to the Disclosure Request with respect to identified confidential information. In such case, the Receiving Party shall deny the Disclosure Request and the Supplying Party shall defend the denial of the Disclosure Request at its sole cost, and it shall indemnify the Receiving Party for all costs associated with denying or objecting to the Disclosure Request. Such indemnification by the Supplying Party of the Receiving Party shall include all of the Receiving Party’s costs reasonably incurred with respect to denial of or objection to the Disclosure Request, including but not limited to costs, penalties, and the Receiving Party’s attorney’s fees; or Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 40  Packet Pg. 408 of 445  29 13.3 Several Liabilities. No Participant shall, in the first instance, be liable under this Agreement for the obligations of any other Participant or for the obligations of NCPA incurred on behalf of other Participants. Each Participant shall be solely responsible and liable for performance of its obligations under this Agreement, except as otherwise provided for herein. The obligation of each Participant under this Agreement is, in the first instance, a several obligation and not a joint obligation with those of the other Participants. Notwithstanding the foregoing, the Participants acknowledge that any debts or obligations incurred by NCPA under this Agreement on behalf of any of them shall be borne solely by such Participants in proportion to their respective Project Participation Percentages, and not by non-Participant Members of NCPA, pursuant to Article IV, Section 3(b) of the Joint Powers Agreement. In the event that a Participant should fail to pay its share of the debts or obligations incurred by NCPA as required by this Agreement, the remaining Participants shall, in proportion to their Project Participation Percentages, pay such unpaid amounts and shall be reimbursed by the Participant failing to make such payments. 13.4 No Consequential Damages. FOR ANY BREACH OF ANY PROVISION OF THIS AGREEMENT FOR WHICH AN EXPRESS REMEDY OR MEASURE OF DAMAGES IS PROVIDED IN THIS AGREEMENT, THE LIABILITY OF THE DEFAULTING PARTY SHALL BE LIMITED AS SET FORTH IN SUCH PROVISION, AND ALL OTHER Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 41  Packet Pg. 409 of 445  30 DAMAGES OR REMEDIES ARE HEREBY WAIVED. IF NO REMEDY OR MEASURE OF DAMAGE IS EXPRESSLY PROVIDED, THE LIABILITY OF THE DEFAULTING PARTY SHALL BE LIMITED TO ACTUAL DAMAGES ONLY AND ALL OTHER DAMAGES AND REMEDIES ARE HEREBY WAIVED. IN NO EVENT SHALL NCPA OR ANY PARTICIPANT OR THEIR RESPECTIVE SUCCESSORS, ASSIGNS, REPRESENTATIVES, DIRECTORS, OFFICERS, AGENTS, OR EMPLOYEES BE LIABLE FOR ANY LOST PROFITS, CONSEQUENTIAL, SPECIAL, EXEMPLARY, INDIRECT, PUNITIVE, OR INCIDENTAL LOSSES OR DAMAGES, INCLUDING LOSS OF USE, LOSS OF GOODWILL, LOST REVENUES, LOSS OF PROFIT OR LOSS OF CONTRACTS EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND NCPA AND EACH PARTICIPANT EACH HEREBY WAIVES SUCH CLAIMS AND RELEASES EACH OTHER AND EACH OF SUCH PERSONS FROM ANY SUCH LIABILITY. Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 42  Packet Pg. 410 of 445  31 13.5 Waiver. No waiver of the performance by a Party of any obligation under this Agreement with respect to any default or any other matter arising in connection with this Agreement shall be effective unless given by the Commission or the governing body of a Participant, as applicable. Any such waiver by the Commission in any particular instance shall not be deemed a waiver with respect to any subsequent performance, default or matter. 13.6 Amendments. Except where this Agreement specifically provides otherwise, this Agreement may be amended only by written instrument executed by the Parties with the same formality as this Agreement. 13.7 Assignment of Agreement. 13.7.1 Binding Upon Successors. This Agreement shall inure to the benefit of and shall be binding upon the respective successors and assignees of the Parties to this Agreement. 13.7.2 No Assignment. Neither this Agreement, nor any interest herein, shall be transferred or assigned by a Party hereto except with the consent in writing of the other Parties hereto, which consent shall not be unreasonably withheld. 13.8 Severability. In the event that any of the terms, covenants or conditions of this Agreement or the application of any such term, covenant or condition, shall be held invalid as to any person or circumstance by any court having jurisdiction, all other terms, covenants or conditions of this Agreement and their application shall not be affected Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 43  Packet Pg. 411 of 445  32 thereby, but shall remain in force and effect unless the court holds that such provisions are not severable from all other provisions of this Agreement. Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 44  Packet Pg. 412 of 445  33 with its terms. Upon execution of this Agreement, each Participant shall deliver to NCPA a resolution of the governing body of such Participant evidencing approval of and authority to enter into this Agreement. Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 45  Packet Pg. 413 of 445  34 execution of this Agreement and no one Party is the author of this Agreement or any of its subparts. Those terms of this Agreement which dictate the responsibility for bearing any attorney’s fees incurred in arbitration, litigation or settlement in a manner inconsistent with the provisions of Section 13.2 were intentionally so drafted by the Parties, and any ambiguities in this Agreement shall not be interpreted for or against a Party by reason of that Party being the author of the provision. Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 46  Packet Pg. 414 of 445  35 IN WITNESS WHEREOF, NCPA and each Participant have, by the signature of its duly authorized representative shown below, executed and delivered a counterpart of this Agreement. NORTHERN CALIFORNIA POWER AGENCY 651 Commerce Drive Roseville, CA 95678 _____________________________ By: Randy S. Howard Title: General Manager Date: Approved as to form: _____________________________ By: Jane E. Luckhardt Its: General Counsel Date: Attestation (if applicable): _____________________________ By:__________________________ Its: Date: CITY OF SANTA CLARA 1500 Warburton Avenue Santa Clara, CA 95050 _____________________________ By:__________________________ Title: __________________________ Date: Approved as to form: _____________________________ By:__________________________ Its: City Attorney Date: Attestation (if applicable): _____________________________ By:__________________________ Its: Date: Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 47  Packet Pg. 415 of 445  36 CITY OF ALAMEDA 2000 Grand Street P.O. Box H Alameda, CA 94501 _____________________________ By:__________________________ Title: ________________________ Date: Approved as to form: _____________________________ By:__________________________ Its: City Attorney Date: Attestation (if applicable) _____________________________ By:__________________________ Its: Date: CITY OF LOMPOC 100 Civic Center Plaza Lompoc, CA 93436 _____________________________ By:__________________________ Title: ________________________ Date: Approved as to form: _____________________________ By: Its: City Attorney__________________ Date: Attestation (if applicable) _____________________________ By:__________________________ Its: Date: Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 48  Packet Pg. 416 of 445  37 CITY OF PALO ALTO 250 Hamilton Avenue Palo Alto, CA 94301 _____________________________ By:__________________________ Title: ________________________ Date: Approved as to form: _____________________________ By: Its: City Attorney__________________ Date: Attestation (if applicable) _____________________________ By:__________________________ Its: Date: CITY OF REDDING 777 Cypress Avenue Redding, CA 96001 _____________________________ By:__________________________ Title: ________________________ Date: Approved as to form: _____________________________ By: Its: City Attorney__________________ Date: Attestation (if applicable) _____________________________ By:__________________________ Its: Date: Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 49  Packet Pg. 417 of 445  38 CITY OF SHASTA LAKE 4477 Main Street Shasta Lake, CA 96019 _____________________________ By:__________________________ Title: ________________________ Date: Approved as to form: _____________________________ By: Its: City Attorney__________________ Date: Attestation (if applicable) _____________________________ By:__________________________ Its: Date:____________________________ CITY OF UKIAH 300 Seminary Avenue Ukiah, CA 95482 _____________________________ By:__________________________ Title: ________________________ Date: Approved as to form: _____________________________ By: Its: City Attorney__________________ Date: Attestation (if applicable) _____________________________ By:__________________________ Its: Date:____________________________ Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 50  Packet Pg. 418 of 445  39 CITY OF OAKLAND, acting by and through its Board of Port Commissioners 530 Water Street Oakland, CA 94607 _____________________________ By:__________________________ Title: ________________________ Date: Approved as to form: _____________________________ By: Its: City Attorney__________________ Date: Attestation (if applicable) _____________________________ By:__________________________ Its: Date:____________________________ Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 51  Packet Pg. 419 of 445  40 EXHIBIT A Table 1 of this Exhibit A lists the Members, and their respective initial Project Participation Percentage share of the Project, that are expected to execute this Agreement by signature, and therefore become Participants (the “Initial Participants): On the Effective Date of the Agreement, NCPA shall prepare Table 2 to reflect the Final Project Participation Percentages of each Participant, and such Table 2 will be added to this Exhibit A as an amendement to this Agreement. NCPA shall provide Notice to each Participant of Table 2 that is incorporated into this Exhibit A as described herein. Pursuant to Section 5 of Exhibit B of the ESSA, if, at Commercial Operation, the Installed Battery Capacity is less than one hundred percent (100%) of the Storage Contract Capacity, Seller shall have one hundred twenty (120) days after the Commercial Operation Date to install additional capacity such that the Installed Battery Capacity is equal to (but not greater than) the one hundred percent (100%) of the Storage Contract Capacity. If Seller fails to construct the Storage Contract Capacity by such date, Seller shall pay NCPA Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 52  Packet Pg. 420 of 445  41 Capacity Damages, and for each MW (or portion thereof) that the Storage Contract Capacity exceeds the Installed Battery Capacity, the Project Participation Share for the Participants shall be automatically adjusted and reduced, on a pro rata basis, to equal to actual amount of Installed Battery Capacity. Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 53  Packet Pg. 421 of 445  42 EXHIBIT B The Energy Storage Service Agreement between Trolley Pass Project LLC and Northern California Power Agency has been attached to this Agreement as Exhibit B. Item 11 Attachment A - Third Phase Agreement with NCPA for the Trolley BESS Project        Item 11: Staff Report Pg. 54  Packet Pg. 422 of 445  City Council Staff Report From: City Clerk Report Type: ACTION ITEMS Lead Department: City Clerk Meeting Date: September 15, 2025 Report #:2508-5127 TITLE Designation of Voting Delegate and Alternate for the League of California Cities Annual 2025 Conference, to be held October 8-10, 2025, in Long Beach, California RECOMMENDATION The City Council should consider attendee Vice Mayor Veenker and designate a voting delegate for the 2025 League of California Cities Annual Conference. BACKGROUND The League’s 2025 Annual Conference is scheduled for October 8-10, 2025 in Long Beach, California. Every year, the League of California Cities convenes a member-driven General Assembly at the Cal Cities Annual Conference and Expo. The General Assembly is an important opportunity where city officials can directly participate in the development of Cal Cities policy. Taking place on Friday, October 10, the General Assembly is comprised of voting delegates appointed by each member city; every city has one voting delegate. The appointed voting delegate plays an important role during the General Assembly by representing our city and voting on resolutions. To cast a vote during the General Assembly, the City Council must designate a voting delegate and up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity. Voting delegates may either be an elected or appointed official. At this time, Vice Mayor Veenker is the sole Council member that has expressed interest in attending and is registered to attend the 2025 Annual Conference. Please find attached correspondence received from the League of California Cities outlining the voting designations and process for the General Assembly. Staff anticipates the designated Item 12 Item 12 Staff Report        Item 12: Staff Report Pg. 1  Packet Pg. 423 of 445  voting delegate(s) to use the City of Palo Alto’s 2025 Federal and State Legislative Guidelines1 to help inform the City’s position on items to be voted on at the General Assembly meeting. FISCAL/RESOURCE IMPACT ATTACHMENTS APPROVED BY: 1 City of Palo Alto’s 2025 Federal and State Legislative Guidelines: https://www.paloalto.gov/files/assets/public/v/1/city-manager/legislation/2025-legislative-guidelines.pdf Item 12 Item 12 Staff Report        Item 12: Staff Report Pg. 2  Packet Pg. 424 of 445  1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org DATE: Wednesday, July 16, 2025 TO: Mayors, Council Members, City Clerks, and City Managers RE: DESIGNATION OF VOTING DELEGATES AND ALTERNATES League of California Cities Annual Conference and Expo, Oct. 8-10, 2025 Long Beach Convention Center Every year, the League of California Cities convenes a member-driven General Assembly at the Cal Cities Annual Conference and Expo. The General Assembly is an important opportunity where city officials can directly participate in the development of Cal Cities policy. Taking place on Oct. 10, the General Assembly is comprised of voting delegates appointed by each member city; every city has one voting delegate. Your appointed voting delegate plays an important role during the General Assembly by representing your city and voting on resolutions. To cast a vote during the General Assembly, your city must designate a voting delegate and up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity. Voting delegates may either be an elected or appointed official. Action by Council Required. Consistent with Cal Cities bylaws, a city’s voting delegate and up to two alternates must be designated by the city council. Please note that designating the voting delegate and alternates must be done by city council action and cannot be accomplished by individual action of the mayor or city manager alone. Following council action, please submit your city’s delegates through the online submission portal by Wed., Sept. 24. When completing the Voting Delegate submission form, you will be asked to attest that council action was taken. You will need to be signed in to your My Cal Cities account when submitting the form. Submitting your voting delegate form by the deadline will allow us time to establish voting delegate/alternate records prior to the conference and provide pre-conference communications with voting delegates. Conference Registration Required. The voting delegate and alternates must be registered to attend the conference. They need not register for the entire conference; they may register for Friday only. Conference registration is open on the Cal Cities website. Council Action Advised by September 24, 2025 Item 12 Attachment A - 2025 Cal Cities Voting Delegate Information Memo        Item 12: Staff Report Pg. 3  Packet Pg. 425 of 445  For a city to cast a vote, one voter must be present at the General Assembly and in possession of the voting delegate card and voting tool. Voting delegates and alternates need to pick up their conference badges before signing in and picking up the voting delegate card at the voting delegate desk. This will enable them to receive the special sticker on their name badges that will admit the voting delegate into the voting area during the General Assembly. Please view Cal Cities’ event and meeting policy in advance of the conference. Transferring Voting Card to Non-Designated Individuals Not Allowed. The voting delegate card may be transferred freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the General Assembly, they may not transfer the voting card to another city official. Seating Protocol during General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate. The voting delegate desk, located in the conference registration area of the Long Beach Convention Center in Long Beach, will be open at the following times: Wednesday, Oct. 8, 8:00 a.m.-6:00 p.m. and Thursday, Oct. 9, 7:30 a.m.-4:00 p.m. On Friday, Oct. 10, the voting delegate desk will be open at the General Assembly, starting at 7:30 a.m., but will be closed during roll calls and voting. The voting procedures that will be used at the conference are attached to this memo. Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city’s voting delegate and alternates. Once again, thank you for submitting your voting delegate and alternates by Wednesday, Sept. 24. If you have questions, please contact Zach Seals at zseals@calcities.org. Attachments: •General Assembly Voting Guidelines •Information Sheet: Cal Cities Resolutions and the General Assembly Item 12 Attachment A - 2025 Cal Cities Voting Delegate Information Memo        Item 12: Staff Report Pg. 4  Packet Pg. 426 of 445  1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org General Assembly Voting Guidelines 1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to Cal Cities policy. 2. Designating a City Voting Representative. Prior to the Cal Cities Annual Conference and Expo, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the voting delegate form provided to the Cal Cities Credentials Committee. 3. Registering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the voting delegate desk in the conference registration area. Voting delegates and alternates must sign in at the voting delegate desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the General Assembly. 4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city’s voting card by providing a signature to the credentials committee at the voting delegate desk, may sign petitions to initiate a resolution. 5. Voting. To cast the city's vote, a city official must have in their possession the city's voting card and voting tool; and be registered with the credentials committee. The voting card may be transferred freely between the voting delegate and alternates but may not be transferred to another city official who is neither a voting delegate nor alternate. 6. Voting Area at General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate. 7. Resolving Disputes. In case of dispute, the credentials committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the General Assembly. Item 12 Attachment A - 2025 Cal Cities Voting Delegate Information Memo        Item 12: Staff Report Pg. 5  Packet Pg. 427 of 445  Sixty days before the Annual Conference and Expo, Cal Cities members may submit policy proposals on issues of importance to cities. The resolution must have the concurrence of at least five additional member cities or individual members. How it works: Cal Cities Resolutions and the General Assembly General Assembly General Resolutions Policy Committees Developing League of California Cities policy is a dynamic process that engages a wide range of members to ensure Cal Cities represents cities with one voice. These policies directly guide Cal Cities’ advocacy to promote local decision-making, and lobby against statewide policies that erode local control. The resolutions process and General Assembly is one way that city officials can directly participate in the development of Cal Cities policy. If a resolution is approved at the General Assembly, it becomes official Cal Cities policy. Here’s how resolutions and the General Assembly work. The petitioned resolution is an alternate method to introduce policy proposals during the annual conference. The petition must be signed by voting delegates from 10% of member cities, and submitted to the Cal Cities President at least 24 hours before the beginning of the General Assembly. Petitioned Resolutions The Cal Cities President assigns general resolutions to policy committees where members review, debate, and recommend positions for each policy proposal. Recommendations are forwarded to the Resolutions Committee. Who’s who The Resolutions Committee includes representatives from each Cal Cities diversity caucus, regional division, municipal department, and policy committee, as well as individuals appointed by the Cal Cities president. Voting delegates are appointed by each member city; every city has one voting delegate. The General Assembly is a meeting of the collective body of all voting delegates —one from every member city. Seven policy committees meet throughout the year to review and recommend positions to take on bills and regulatory proposals. Policy committees include members from each Cal Cities diversity caucus, regional division, and municipal department, as well as individuals appointed by the Cal Cities president. During the General Assembly, voting delegates debate and consider general and petitioned resolutions forwarded by the Resolutions Committee. Potential Cal Cities bylaws amendments are also considered at this meeting. Cal Cities policy development is a member-informed process, grounded in the voices and experiences of city officials throughout the state. For more information visit www.calcities.org/general-assembly Prior to the Annual Conference and Expo Resolutions Committee The Resolutions Committee considers all resolutions. General Resolutions approved1 by either a policy committee or the Resolutions Committee are next considered by the General Assembly. General resolutions not approved, or referred for further study by both a policy committee and the Resolutions Committee do not go to the General Assembly. All Petitioned Resolutions are considered by the General Assembly, unless disqualified.2 During the Annual Conference and Expo 1 The Resolution Committee can amend a general resolution prior to sending it to the General Assembly. 2 Petitioned Resolutions may be disqualified by the Resolutions Committee according to Cal Cities Bylaws Article VI. Sec. 5(f). Item 12 Attachment A - 2025 Cal Cities Voting Delegate Information Memo        Item 12: Staff Report Pg. 6  Packet Pg. 428 of 445  City Council Staff Report From: City Manager Report Type: INFORMATION REPORTS Lead Department: Administrative Services Meeting Date: September 15, 2025 Report #:2503-4252 TITLE Semi-annual Reports of Contracts Awarded by the City Manager, Procurement Officer or Other Designated Employees for the period of January 1, 2025 through June 30, 2025; CEQA Status- Not a Project. RECOMMENDATION This is an informational report and no action is required. DISCUSSION Palo Alto Municipal Code (PAMC) Section 2.30.710(a)1 requires the City Manager to provide a semi-annual report to Council consisting of contracts awarded by the City Manager, Procurement Officer or other designated employees for: 1. Goods contracts $85,000 through $250,000 per year (Attachment A), and 2. Professional and General Services $25,000 through $85,000 and Public Works Contracts $85,000 through $250,000 per year (Attachment B). The contracts in Attachment A consist of nine (9) distinct awards for goods, and the contracts in Attachment B consist of seventy-seven (77) distinct awards for a range of services. These awards are a core element of the efficient and effective provision of services by the City to our community and reflect extensive coordination and prudent decision-making. 1 Palo Alto Municipal Code 2.30.710 City Manager reports Item A Item A Staff Report        Item A: Staff Report Pg. 1  Packet Pg. 429 of 445  The PAMC section that sets forth the authority designated by Council to the Procurement Officer to award and sign contracts is PAMC 2.30.2003 and to the City Manager to award and sign contracts is PAMC 2.30.2104. ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: 3 Palo Alto Municipal Code 2.30.200 Procurement officer contract award authority https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-61873 4 Palo Alto Municipal Code 2.30.210 City Manager contract award authority https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-61881 Item A Item A Staff Report        Item A: Staff Report Pg. 2  Packet Pg. 430 of 445  ATTACHMENT A Goods Contracts Awarded $85,000 through $250,000 per year January 1, 2025 through June 30, 2025 Contract Awarded To Award Date Award Amount Bidding Exemption or  Number of Bids         Sent/Received          *PAMC 2.30.360 Description COOPER POWER SYSTEMS 6/16/2025 $145,817.96 3457/3 3‐Phase Pad Mounted Distribution Voltage DASHER TECHNOLOGIES INC 2/20/2025 $189,154.23 2.30.360(j) HPE Aruba Networking CX 6300M GOLDEN GATE SYSTEMS LLC 2/20/2025 $201,307.31 2.30.360(j) Purchase of 150 HP EliteBook 640 Notebook PC MEIDEN AMERICA SWITCHGEAR INC 6/23/2025 $125,351.89 2.30.360(d) COP 60kV Circuit Breaker  PACE SUPPLY CORP 5/21/2025 $142,268.01 3485/6 Hydrant Steamer #76 PACIFIC FITNESS PRODUCTS LLC 1/22/2025 $103,723.87 2.30.360(j) Fitness Equipment for the Public Safety Building TRANE US INC 4/14/2025 $151,425.86 2.30.360(j) HVAC Equipment (7 units) TROJAN TECHNOLOGIES CORP 4/1/2025 $88,271.32 2.30.360 (e) UV Lamp,  UV System WINNER CHEVROLET INC 4/17/2025 $176,647.47 416/4 Purchase of Three Chevy Silverado EV Crew Cab Trucks *PAMC 2.30.360 https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-61990 Page 1 of 1 Item AAttachment A - GoodsContracts Awarded $85,000through $250,000 per year      Item A: Staff Report Pg. 3  Packet Pg. 431 of 445  ATTACHMENT B Services Contracts Awarded Professional Services and General Services $25,000 through $85,000 per year and Public Works Contracts $85,000 through $250,000 per year Contract Awarded To Award Date Award Amount Bidding Exemption or Number of Bids Sent/Received *PAMC 2.30.360 Description ACCO ENGINEERED SYSTEMS 6/23/2025 205,358.00 3500/5 Downtown Community Center Mechanical Upgrade Project AMERICAN COOLING TOWER INC 1/7/2025 65,716.00 3291/4 City Hall Cooling Tower Project ANAYA CONSTRUCTION 6/24/2025 47,400.00 4/1 PAO Modular Building Installation and Relocation APENA ENGINEERING 3/13/2025 103,951.10 3260/3 Greer Park Basketball Resurfacing Project APEX COMPANIES LLC 6/2/2025 103,800.00 3517/2 Purchase & Install of Traffic Control Devices ASCENSION GROUP PARTNERS 2/19/2025 38,425.00 2.30.360(i)PAO Rate and Fee Study and RFP Preparation Services ASSETWORKS INC 4/16/2025 51,059.47 2.30.360(k)YR 1 Maintenance- Fleet Focus Software ATKINSON ANDELSON LOYA 4/23/2025 70,000.00 2.30.360(g)Professional Legal Services BIBLIOCOMMONS INC.3/4/2025 82,360.60 2.30.360(d)BiblioCommons-Online Catalog-Year 1 BKF ENGINEERS 4/18/2025 85,000.00 3448/9 On-Call Surveying Services Year 1 CALIX INC 6/25/2025 31,900.00 2.30.360(d)Calix Smart Home Onramp Software CARAHSOFT TECHNOLOGY CORP.1/30/2025 42,550.00 2.30.360(j)Citibot Web Chat- Year 2 CARAHSOFT TECHNOLOGY CORP.4/22/2025 64,965.00 2.30.360(j)Envision Enterprise Software Subscription CITIZEN GROUP 7/2/2025 85,000.00 3538/9 Outreach and Graphic Design Services CITY OF SUNNYVALE 1/22/2025 45,000.00 2.30.360(k)Joint Fire Academy- City of Sunnyvale CJW ARCHITECTURE 2/19/2025 84,660.00 2.30.360(i)445 Bryant Street Renovation and Improvements project CJW ARCHITECTURE 4/2/2025 84,671.00 3/2 Police Department Space Assessment CLA-VAL COMPANY 4/9/2025 35,058.40 2.30.360(d)Certified Cla-Val Service Technicians CONKLIN BROS OF SAN JOSE INC 4/8/2025 50,554.94 2.30.360(j)445 Bryant Street Renovation and Improvements project CW EVENTS LLC 3/3/2025 49,992.82 2.30.360(i)Staff Appreciation Event DIPIETRO & ASSOCIATES, INC.6/25/2025 50,000.00 3/3 AED Maintenance Program Dudek 6/24/2025 48,480.00 2.30.360(i)Hazard Mitigation Grant Application EMBARCADERO MEDIA FOUNDATION 2/21/2025 65,000.00 3358/1 Zero Waste Advertising- YR 1 EPLUS TECHNOLOGY INC 1/30/2025 50,552.10 2.30.360(j)Support and Maintenance- Palo Alto Networks Advance Software EPLUS TECHNOLOGY INC 2/5/2025 65,358.94 2.30.360(j)DDI EIP Software for Fiber Optics Equipment ESCI INC 3/19/2025 49,000.00 2.30.360(i)Electrical Safety Training EV SPORTLINE 5/12/2025 26,411.69 298/1 Rivian Unit # 5573 Outfitting- PD Patrol EXAMINETICS, INC.5/6/2025 40,000.00 2.30.360(i)Hearing Exams FIBERSMITH SOFTWARE SOLUTIONS 5/1/2025 85,000.00 3356/6 Operations Support System and Business Support System Software FIRESTATS, LLC 1/16/2025 28,875.00 2.30.360(c)Statistical Analysis Tool and Management Software- Fire Dept FLEXGROUND LLC 6/23/2025 27,858.43 3/1 Rubber surfacing repairs-Mitchell Park GEORGE HILLS COMPANY INC 3/7/2025 50,000.00 2.30.360(g)Professional Legal Services GOMO CONSULTING 1/24/2025 50,000.00 2.30.360(i)Fiber Broadband Marketing HIREVUE INC 3/4/2025 48,500.00 2.30.360(d)Hire Vue Essentials- Hiring Platform *PAMC 2.30.360 https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-61990 Page 1 of 3 Item A Attachment B - Professional and General Services $25,000 through $85,000 per year and Public Works Contracts $85,000 through $250,000 per year        Item A: Staff Report Pg. 4  Packet Pg. 432 of 445  ATTACHMENT B Services Contracts Awarded Professional Services and General Services $25,000 through $85,000 per year and Public Works Contracts $85,000 through $250,000 per year Contract Awarded To Award Date Award Amount Bidding Exemption or Number of Bids Sent/Received *PAMC 2.30.360 Description HLP INC 5/28/2025 26,600.00 2.30.360(d)FY25 Chameleon Server HOHBACH-LEWIN INC 2/27/2025 43,000.00 2.30.330 Guardrail repairs at Alma Street INSIGHT PUBLIC SECTOR, INC.1/30/2025 29,120.00 2.30.360(j)Mimecast Managed Migration E2E- License INSIGHT PUBLIC SECTOR, INC.3/20/2025 82,471.95 2.30.360(j)Mimecast 365 Protect Service Renewal JACKSON LEWIS PC 3/3/2025 70,000.00 2.30.360(g)Professional Legal Services-Scope 1 JACKSON LEWIS PC 3/3/2025 35,000.00 2.30.360(g)Professional Legal Services-Scope 2 JACKSON LEWIS PC 3/11/2025 30,000.00 2.30.360(g)Professional Legal Services-Scope 3 JARVIS FAY LLP 3/17/2025 45,000.00 2.30.360(g)Professional Legal Services-Scope 1 JARVIS FAY LLP 3/17/2025 50,000.00 2.30.360(g)Professional Legal Services-Scope2 KZSU STANFORD UNIVERSITY 3/26/2025 33,410.04 2.30.360(d)City Council Radio Broadcast Service LN CURTIS & SONS 1/8/2025 30,000.00 2.30.360(j)NFPA PPE Inspection Program MCCAMPBELL ANALYTICAL INC 4/4/2025 45,000.00 3/3 Laboratory services for Watershed Protection MICROSOFT CORPORATION 6/16/2025 77,945.00 2.30.360(b)Microsoft Unified Enterprise Support MUNICIPAL RESOURCE GROUP LLC 4/18/2025 41,000.50 2.30.360(i)Strategic Plan for Library NAUTILUS ART STUDIO INC 3/7/2025 49,755.00 2.30.360(i)Bronze Sculpture at Baylands NEGAR FADAEIDEHKORDI 4/17/2025 30,912.50 2.30.360(i)Teaching Artist Services NEIGHBORS ABROAD 6/25/2025 50,000.00 2.30.360(d)Admin/Professional Services- Sister Cities OCLC INC 5/15/2025 34,920.00 2.30.360(d)Library Catalog Services OPTM 2/25/2025 72,896.10 4/4 Oracle Database Standard Edition PEOPLES ASSOCIATES STRUCTURAL 2/19/2025 50,000.00 2.30.360(i)On- Call Structural and Civil Engineering Services PRESERVATION ARTS LLC 5/30/2025 34,287.00 2.30.360(i)Refurbishing of Albuqurque Sculpture PUMP REPAIR SERVICE COMPANY IN 4/28/2025 43,918.28 2.30.160 Ldge Lift Station Pump #1 Repair QUALITY ASSURANCE ENGINEERING 4/16/2025 85,000.00 3457/5 On-call Soil and Materials Testing RIDLEY MASTER 3/3/2025 85,000.00 2.30.360(g)Professional Legal Services RINCON CONSULTANTS, INC.4/7/2025 38,025.00 2.30.360(h)635 Los Trancos Road - CEQA RINCON CONSULTANTS, INC.4/2/2025 80,889.00 2.30.360(h)2100-2400 Geng Road CEQA RINCON CONSULTANTS, INC.4/2/2025 39,484.00 2.30.360(h)929 Laurel Glen Drive - CEQA SALCIDOS BACKFLOW SERVICES INC 6/19/2025 83,982.00 3525/5 Backflow Repair & Retest Services- Year 1 SAVANT SOLUTIONS INC 4/3/2025 35,040.00 2.30.360(j)Palo Alto Networks Advanced Threat Prevention SECURITAS TECHNOLOGY CORPORATION 4/1/2025 36,125.42 2.30.360(j)Fire alarm panel replacement installation - Lot R SECURITAS TECHNOLOGY CORPORATION 6/2/2025 83,067.68 2.30.360(j)Fire alarm panel upgrade installation- 445 Bryant & Lot S/L SHI INTERNATIONAL CORP 4/28/2025 28,500.00 2.30.360(j)PD's 250 Net Motion licenses SHI INTERNATIONAL CORP 5/7/2025 40,039.73 2.30.360(j)Kentrik Pro Software STRATAGEM LLP 1/7/2025 30,000.00 2.30.360(g)Professional Legal Services TELECOMMUNICATIONS ENG ASSOC 2/5/2025 71,208.00 2.30.360(b)PD Analog Radio Maintenance *PAMC 2.30.360 https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-61990 Page 2 of 3 Item A Attachment B - Professional and General Services $25,000 through $85,000 per year and Public Works Contracts $85,000 through $250,000 per year        Item A: Staff Report Pg. 5  Packet Pg. 433 of 445  ATTACHMENT B Services Contracts Awarded Professional Services and General Services $25,000 through $85,000 per year and Public Works Contracts $85,000 through $250,000 per year Contract Awarded To Award Date Award Amount Bidding Exemption or Number of Bids Sent/Received *PAMC 2.30.360 Description THOMSON REUTERS - THOMSON WEST 7/1/2025 58,094.00 2.30.360(d)Legal Research Materials-West Law TOCHI 3/17/2025 80,570.00 3/3 Public Safety Building-Electrical Work TRANSCRIPTION PLUS LLC 3/26/2025 40,001.00 3277/12 Transcription Services TRIPLE HS, INC.2/24/2025 42,617.00 2.30.360(i)Project Management Services VAN DERMYDEN MAKUS LAW CORPORA 3/17/2025 50,000.00 2.30.360(g)Professional Legal Services VANCE BROWN INC 3/12/2025 47,803.62 2.30.360b2 Installation of Signs- Baylands VOCANTAS SOFTWARE 3/24/2025 29,260.00 2.30.360(b2)Vocantas UOC Support WSP USA INC 6/18/2025 84,136.30 3478/3 YR1-Landfill Groundwater Monitoring *PAMC 2.30.360 https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-61990 Page 3 of 3 Item A Attachment B - Professional and General Services $25,000 through $85,000 per year and Public Works Contracts $85,000 through $250,000 per year        Item A: Staff Report Pg. 6  Packet Pg. 434 of 445  City Council Staff Report From: City Manager Report Type: INFORMATION REPORTS Lead Department: Planning and Development Services Meeting Date: September 15, 2025 Report #:2507-4989 TITLE Accessory Dwelling Unit (ADU) – 2025 Quarter 2 (April– June 2025) Report RECOMMENDATION This is an informational report, and no action is required. ANALYSIS This report transmits information related to application activity for accessory dwelling units (ADU), including junior accessory dwelling units (JADU), for the second quarter of calendar year 2025. Since 2015, the City has received 887 ADU/JADU building permit applications and issued 690 building permits. Since the beginning of the Housing Element cycle in 2023, 243 ADUs and 73 JADUs have been permitted which is on pace to exceed the expected ADU production from this Housing Element; for an average of 126 units per year. In the first half of 2025, the City received 87 new applications, issued 63 ADU permits, and provided an approved Final Inspection on 80 ADU/JADU permits. The ADU sizes of open applications in this period range from 176 to 1,000 square feet, with an average size of 570 square feet. Approximately 38% of applications are located north of Oregon Expressway, and 62% are located south of Oregon Expressway. Since 2017, the majority of ADU/JADU permits relative to the Oregon Expressway has shifted between north and south from year to year. Further details can be found on Table 1 of the following page. Item B Item B Staff Report        Item B: Staff Report Pg. 1  Packet Pg. 435 of 445  Table 1: Summary of ADU Permits from 2015-2025 Category 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 (Q1-Q2) New ADU Applications Filed1 10 9 28 55 75 78 136 151 122 136 87 Permits: Ready to Issue (City Approved)2 8 5 12 39 62 46 112 127 135 131 64 Permits: Issued (Permit Obtained)3 8 5 12 36 62 43 89 120 125 128 63 Permits: Final Inspection Approved4 3 4 9 12 33 46 37 62 101 105 80 Permits Expired 1 1 1 6 2 Detached ADUs (Submitted)5 20 35 52 52 80 80 48 53 36 Detached ADUs (Issued)5 8 24 41 33 55 64 57 48 20 Attached ADUs (Submitted)6 8 20 23 20 56 44 43 47 30 Attached ADUs (Issued)6 4 11 21 9 34 32 40 52 21 Junior ADUs (Submitted)7 1 1 1 25 27 31 36 21 Junior ADUs (Issued)7 1 1 1 9 24 28 24 22 Average Application Processing Time (Days Including Weekends)8 127 214 118 183 135 197 162 193 187 193 188 Average Construction Time (Days Including Weekends)9 578 751 330 287 173 262 455 431 496 519 459 City Impact Fees Collected for New ADUs10 $451,514 $402,012 $198,962 $44,057 $139,592 $540,453 $487,322 $498,101 $310,952 ADU Size Smallest 150 SF 159 SF 220 SF 208 SF 178 SF 192 SF 227 SF 165 SF 176 SF ADU Size Largest 900 SF 900 SF 1,031 SF 1,000 SF 1,218 SF 2,217 SF 1,000 SF 1,000 SF 1,000 SF Average ADU Size 470 SF 469 SF 383 SF 518 SF 550 SF 589 SF 571 SF 558 SF 570 SF North 46%49%52%55%49%52%41%44%38%ADU Location Relative to Oregon Expressway South 54%51%48%45%51%48%59%56%62% Source: City of Palo Alto Accela Data January 2015 through June 2025 Notes: 1. Any ADU/JADU Application SUBMITTED for the year 2. Any ADU/JADU application Permit 'READY TO Issue' for the year (regardless of when it was submitted) 3. Any ADU/JADU Permit ISSUED for the year (regardless of when it was submitted) 4. Any ADU/JADU Permit receiving a Final Inspection (Ready to Occupy) for the year, regardless of when the application was submitted. Years 2015-2017 data point not available. Item B Item B Staff Report        Item B: Staff Report Pg. 2  Packet Pg. 436 of 445  Table 1: Summary of ADU Permits from 2015-2025 5. Any Detached ADU Permit Application submitted for the year/Any Detached ADU Permit Issued for the year, regardless of when the application was submitted. Years 2015-2016 data point not available. 6. Any Attached ADU Permit Application submitted for the year/Any Attached ADU Permit Issued for the year, regardless of when the application was submitted. Years 2015-2016 data point not available. 7. Any JADU Permit Application submitted for the year/Any JADU Permit Issued for the year, regardless of when the application was submitted. Years 2015-2016 data point not available. 8. Average number of days from permit application submittal to when permit is approved and ready to issue. This average includes weekends and days application is pending due to applicant preparation of resubmittal or additional information from applicant. 9. Average number of days from permit issued to final inspection completed. This average includes weekends and days staff is waiting for applicant to schedule the next required inspection; it also includes time related to the construction of a primary residence when the J/ADU is built at the same time. 10. Impact Fees collected for ADU’s permitted for the year. Years 2015-2016 data point not available. Item B Item B Staff Report        Item B: Staff Report Pg. 3  Packet Pg. 437 of 445  FISCAL/RESOURCE IMPACT ATTACHMENTS APPROVED BY: Jonathan Lait, Planning and Development Services Director Item B Item B Staff Report        Item B: Staff Report Pg. 4  Packet Pg. 438 of 445  Q1-Q2 2025 ADU/JADUs Submitted New Construction Conversion Type of Conversion # of Apps Dwelling Type Project Location Zoning District Date Filed Application Status Attached Detached Attached Detached Garage Other Acc. Structure of Space # of Bdrms ADU Size 1 JADU South R-1 1/7/25 Pending Resubmittal x x 1 200 2 ADU South R-1 (8000) 1/10/25 Permit Issued x 2 728 3 ADU North R-1 1/13/25 Permit Issued x 1 517 4 JADU South R-1 (S) 1/14/25 Permit Issued x x 1 493 5 JADU North R-1 1/27/25 Pending Resubmittal x 1 265 6 ADU South R-1 (7000) 1/28/25 Permit Issued x 1 558 7 ADU North R-1 1/28/25 Pending Resubmittal x x 2 944 8 ADU North R-1 1/30/25 Pending Resubmittal x 1 647 9 ADU South R-1 (8000) 1/30/25 Pending Resubmittal x 2 800 10 ADU North R-1 (10000) 2/3/25 Pending Resubmittal x 1 718 11 ADU North R-1 (S) 2/4/25 Incomplete x 2 799 12 JADU North R-1 2/5/25 Permit Issued x 1 286 13 ADU South R-1 2/6/25 Pending Resubmittal x x 2 745 14 ADU South R-1 2/10/25 Pending Resubmittal x x 1 825 15 JADU South R-1 2/11/25 Permit Issued x 0 389 Item BAttachment A - Q2 2025ADU Location Data Table       Item B: Staff Report Pg. 5  Packet Pg. 439 of 445  Q1-Q2 2025 ADU/JADUs Submitted New Construction Conversion Type of Conversion # of Apps Dwelling Type Project Location Zoning District Date Filed Application Status Attached Detached Attached Detached Garage Other Acc. Structure of Space # of Bdrms ADU Size 16 ADU North R-1 (10000) 2/11/25 Pending Resubmittal x 0 787 17 ADU South RM-15 2/12/25 Pending Resubmittal x x 2 680 18 ADU South R-1 2/12/25 Pending Resubmittal x 1 560 19 JADU North R-1 2/18/25 Pending Resubmittal x 0 246 20 ADU North R-1 2/18/25 Pending Resubmittal x 1 430 21 JADU South R-1 2/20/25 Permit Issued x x 0 293 22 JADU South R-1 2/20/25 Pending Resubmittal x x 0 230 23 ADU South R-1 2/20/25 In Plan Check x 2 400 24 ADU South R-1 (8000) 2/20/25 Pending Resubmittal x 2 781 25 ADU South R-1 2/21/25 Permit Issued x 1 545 26 ADU North R-1 2/24/25 Permit Issued x 1 748 27 JADU South R-1 2/25/25 In Plan Check x 1 499 28 ADU South R-1 2/25/25 In Plan Check x 1 748 Item BAttachment A - Q2 2025ADU Location Data Table       Item B: Staff Report Pg. 6  Packet Pg. 440 of 445  Q1-Q2 2025 ADU/JADUs Submitted New Construction Conversion Type of Conversion # of Apps Dwelling Type Project Location Zoning District Date Filed Application Status Attached Detached Attached Detached Garage Other Acc. Structure of Space # of Bdrms ADU Size 29 ADU North R-1 3/5/25 Pending Resubmittal x x 1 453 30 JADU South R-1 (S) 3/11/25 Permit Issued x x 1 395 31 ADU South R-1 3/13/25 Permit Issued x 1 796 32 ADU North R-1 3/17/25 Pending Resubmittal x x 0 403 33 ADU North R-1 3/18/25 Pending Resubmittal x 0 936 34 JADU South R-1 3/19/25 In Plan Check x 0 288 35 ADU South R-1 (8000) 3/19/25 Pending Resubmittal x 2 998 36 ADU North R-1 3/19/25 In Plan Check x 1 800 37 ADU South R-1 (8000) 3/20/25 Pending Resubmittal x 1 527 38 ADU South R-1 3/25/25 Pending Resubmittal x x 1 423 39 ADU South R-1 (8000)(S) 3/27/25 Permit Issued x 1 749 40 ADU North R-1 3/27/25 Pending Resubmittal x 1 667 41 JADU South R-1 3/31/25 Pending Resubmittal x x 1 420 42 JADU North R-1 (10000) 3/31/25 In Plan Check x 1 407 Item BAttachment A - Q2 2025ADU Location Data Table       Item B: Staff Report Pg. 7  Packet Pg. 441 of 445  Q1-Q2 2025 ADU/JADUs Submitted New Construction Conversion Type of Conversion # of Apps Dwelling Type Project Location Zoning District Date Filed Application Status Attached Detached Attached Detached Garage Other Acc. Structure of Space # of Bdrms ADU Size 43 ADU South R-1 3/31/25 Pending Resubmittal x x 1 308 44 ADU South R-1 4/3/25 Pending Resubmittal x 1 494 45 ADU South R-1 4/4/25 In Plan Check x 1 494 46 ADU North R-1 4/7/25 In Plan Check x 1 360 47 ADU South R-1 4/8/25 Pending Resubmittal x 2 653 48 ADU North R-1 4/8/25 Pending Resubmittal x x 1 751 49 ADU South R-1 4/9/25 Pending Resubmittal x 2 700 50 ADU South R-1 (8000) 4/10/25 In Plan Check x 2 649 51 JADU North R-1 4/11/25 Pending Resubmittal x 1 457 52 JADU South R-1 4/15/25 Pending Resubmittal x 1 176 53 ADU North R-1 4/16/25 Pending Resubmittal x x 1 408 54 ADU South R-1 4/17/25 Pending Resubmittal x 1 748 55 JADU South R-1 4/18/25 Pending Resubmittal x 1 468 Item BAttachment A - Q2 2025ADU Location Data Table       Item B: Staff Report Pg. 8  Packet Pg. 442 of 445  Q1-Q2 2025 ADU/JADUs Submitted New Construction Conversion Type of Conversion # of Apps Dwelling Type Project Location Zoning District Date Filed Application Status Attached Detached Attached Detached Garage Other Acc. Structure of Space # of Bdrms ADU Size 56 ADU South R-1 4/23/25 In Plan Check x x 1 794 57 ADU North R-1 4/24/25 Pending Resubmittal x 2 924 58 JADU South R-1 (7000) 4/28/25 Pending Resubmittal x x 1 390 59 ADU South R-1 4/28/25 Pending Resubmittal x x 1 495 60 ADU South R-1 4/29/25 Pending Resubmittal x 1 711 61 ADU South R-1 4/29/25 Pending Resubmittal x 1 698 62 JADU North R-1 5/1/25 Pending Resubmittal x x 0 401 63 ADU North R-1 5/1/25 Pending Resubmittal x 2 749 64 ADU South R-1 5/7/25 Pending Resubmittal x 1 747 65 ADU South RM-30 5/13/25 Pending Resubmittal x x 2 832 66 ADU North R-1 (10000) 5/14/25 Incomplete x 2 1,000 67 ADU North R-1 5/15/25 Pending Resubmittal x 2 650 68 ADU South R-1 (S) 5/15/25 In Plan Check x 1 496 Item BAttachment A - Q2 2025ADU Location Data Table       Item B: Staff Report Pg. 9  Packet Pg. 443 of 445  Q1-Q2 2025 ADU/JADUs Submitted New Construction Conversion Type of Conversion # of Apps Dwelling Type Project Location Zoning District Date Filed Application Status Attached Detached Attached Detached Garage Other Acc. Structure of Space # of Bdrms ADU Size 69 JADU South R-1 5/19/25 Pending Resubmittal x 1 498 70 ADU South R-1 5/21/25 Pending Resubmittal x 1 295 71 ADU South R-1 5/21/25 Pending Resubmittal x 1 295 72 ADU South R-1 5/23/25 In Plan Check x x 0 590 73 ADU South R-1 5/27/25 Pending Resubmittal x 1 716 74 ADU North R-1 5/28/25 Pending Resubmittal x 2 794 75 ADU North R-1 5/28/25 Pending Resubmittal x 1 273 76 JADU North R-1 5/29/25 In Plan Check x 1 326 77 ADU South R-1 6/3/25 In Plan Check x 2 749 78 ADU South R-1 (8000)(S) 6/5/25 Pending Resubmittal x 1 540 79 ADU North R-1 6/9/25 In Plan Check x 1 559 80 ADU South R-1 (7000) 6/11/25 In Plan Check x 1 459 81 ADU South R-1 6/13/25 In Plan Check x x 1 402 82 JADU North R-1 6/19/25 Pending Resubmittal x x 1 225 Item BAttachment A - Q2 2025ADU Location Data Table       Item B: Staff Report Pg. 10  Packet Pg. 444 of 445  Q1-Q2 2025 ADU/JADUs Submitted New Construction Conversion Type of Conversion # of Apps Dwelling Type Project Location Zoning District Date Filed Application Status Attached Detached Attached Detached Garage Other Acc. Structure of Space # of Bdrms ADU Size 83 ADU North R-1 6/23/25 Pending Resubmittal x x 1 341 84 ADU South R-1 (8000) 6/24/25 In Plan Check x x 1 749 85 ADU South R-1 6/24/25 In Plan Check x 0 749 86 ADU North R-1 6/26/25 Pending Resubmittal x 1 540 87 ADU South RE 6/30/25 In Plan Check x 1 795 Item BAttachment A - Q2 2025ADU Location Data Table       Item B: Staff Report Pg. 11  Packet Pg. 445 of 445