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HomeMy WebLinkAbout2024-09-16 City Council Agenda PacketCITY COUNCIL Regular Meeting Monday, September 16, 2024 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 comment, if any, will be heard at the end of the agenda. Public comments for agendized items will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. Requests to speak will be taken until 5 minutes after the staff’s presentation or as determined by the Chair. Written public comments can be submitted in advance to city.council@CityofPaloAlto.org and will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your subject line. PowerPoints, videos, or other media to be presented during public comment are accepted only by email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received, the  Clerk will have them shared at public comment for the specified item. To uphold strong cybersecurity management practices, USB’s or other physical electronic storage devices are not accepted. Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks, posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do not create a facility, fire, or safety hazard; and (3) persons with such items remain seated when displaying them and must not raise the items above shoulder level, obstruct the view or passage of other attendees, or otherwise disturb the business of the meeting. TIME ESTIMATES Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. CALL TO ORDER SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:35 PM) 1.Resolution in Support of Build the Future Santa Clara County AGENDA CHANGES, ADDITIONS AND DELETIONS PUBLIC COMMENT (5:35 ‐ 6:05 PM) Members of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on # 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 (6:05 ‐ 6:10 PM) Members of the public may not speak to the item(s). STUDY SESSION (ITEM 2: 6:10 ‐ 6:55 PM, ITEM 3: 6:55 ‐ 8:55 PM) 2.Caltrain Electrification and Local Coordination Updates 3.Update and Receive Council Input on Airport Long‐Range Plan Project CITY MANAGER COMMENTS (8:55 ‐ 9:10 PM) BREAK (15 MINUTES) CLOSED SESSION (9:25 ‐ 11:25 PM) 4.PUBLIC EMPLOYEE PERFORMANCE EVALUATIONS Authority: Cal. Gov. Code section 54957(b)(1) Titles: City Manager, City Attorney and City Clerk ADJOURNMENT INFORMATION REPORTS Information reports are provided for informational purposes only to the Council and the public but are not listed for action during this meeting’s agenda. 5.Sales Tax Digest 2024 Q1 (January to March) OTHER INFORMATION Standing Committee Meetings this week     Rail Committee September 17, 2024     Finance Committee September 17, 2024     Retail Committee September 18, 2024     City/Schools Liasion Committee September 19, 2024 Public Comment Letters Schedule of Meetings PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments for agendized items using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully. 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@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 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 $250 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. 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 $250 made within the last 12 months, you must disclose the campaign contribution before making your comments.  1 September 16, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCILRegular MeetingMonday, September 16, 2024Council Chambers & Hybrid5:30 PMPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. Information on how the public may observe and participate in themeeting is located at the end of the agenda. The meeting will be broadcast on Cable TVChannel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed toMidpen Media Center https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN   (https://cityofpaloalto.zoom.us/j/362027238)   Meeting ID: 362 027 238    Phone:1(669)900‐6833PUBLIC COMMENTSGeneral Public Comment for items not on the agenda will be accepted in person for up to threeminutes or an amount of time determined by the Chair. General public comment will be heardfor 30 minutes. Additional public comment, if any, will be heard at the end of the agenda. Publiccomments for agendized items will be accepted both in person and via Zoom for up to threeminutes or an amount of time determined by the Chair. Requests to speak will be taken until 5minutes after the staff’s presentation or as determined by the Chair. Written public commentscan be submitted in advance to city.council@CityofPaloAlto.org and will be provided to theCouncil and available for inspection on the City’s website. Please clearly indicate which agendaitem you are referencing in your subject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the  Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.TIME ESTIMATES Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. CALL TO ORDER SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:35 PM) 1.Resolution in Support of Build the Future Santa Clara County AGENDA CHANGES, ADDITIONS AND DELETIONS PUBLIC COMMENT (5:35 ‐ 6:05 PM) Members of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on # 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 (6:05 ‐ 6:10 PM) Members of the public may not speak to the item(s). STUDY SESSION (ITEM 2: 6:10 ‐ 6:55 PM, ITEM 3: 6:55 ‐ 8:55 PM) 2.Caltrain Electrification and Local Coordination Updates 3.Update and Receive Council Input on Airport Long‐Range Plan Project CITY MANAGER COMMENTS (8:55 ‐ 9:10 PM) BREAK (15 MINUTES) CLOSED SESSION (9:25 ‐ 11:25 PM) 4.PUBLIC EMPLOYEE PERFORMANCE EVALUATIONS Authority: Cal. Gov. Code section 54957(b)(1) Titles: City Manager, City Attorney and City Clerk ADJOURNMENT INFORMATION REPORTS Information reports are provided for informational purposes only to the Council and the public but are not listed for action during this meeting’s agenda. 5.Sales Tax Digest 2024 Q1 (January to March) OTHER INFORMATION Standing Committee Meetings this week     Rail Committee September 17, 2024     Finance Committee September 17, 2024     Retail Committee September 18, 2024     City/Schools Liasion Committee September 19, 2024 Public Comment Letters Schedule of Meetings PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments for agendized items using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully. 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@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 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 $250 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. 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 $250 made within the last 12 months, you must disclose the campaign contribution before making your comments.  2 September 16, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCILRegular MeetingMonday, September 16, 2024Council Chambers & Hybrid5:30 PMPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. Information on how the public may observe and participate in themeeting is located at the end of the agenda. The meeting will be broadcast on Cable TVChannel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed toMidpen Media Center https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN   (https://cityofpaloalto.zoom.us/j/362027238)   Meeting ID: 362 027 238    Phone:1(669)900‐6833PUBLIC COMMENTSGeneral Public Comment for items not on the agenda will be accepted in person for up to threeminutes or an amount of time determined by the Chair. General public comment will be heardfor 30 minutes. Additional public comment, if any, will be heard at the end of the agenda. Publiccomments for agendized items will be accepted both in person and via Zoom for up to threeminutes or an amount of time determined by the Chair. Requests to speak will be taken until 5minutes after the staff’s presentation or as determined by the Chair. Written public commentscan be submitted in advance to city.council@CityofPaloAlto.org and will be provided to theCouncil and available for inspection on the City’s website. Please clearly indicate which agendaitem you are referencing in your subject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the  Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERSPECIAL ORDERS OF THE DAY (5:30 ‐ 5:35 PM)1.Resolution in Support of Build the Future Santa Clara CountyAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (5:35 ‐ 6:05 PM)Members of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on # ofspeakers.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 (6:05 ‐ 6:10 PM)Members of the public may not speak to the item(s).STUDY SESSION (ITEM 2: 6:10 ‐ 6:55 PM, ITEM 3: 6:55 ‐ 8:55 PM)2.Caltrain Electrification and Local Coordination Updates3.Update and Receive Council Input on Airport Long‐Range Plan ProjectCITY MANAGER COMMENTS (8:55 ‐ 9:10 PM)BREAK (15 MINUTES)CLOSED SESSION (9:25 ‐ 11:25 PM)4.PUBLIC EMPLOYEE PERFORMANCE EVALUATIONSAuthority: Cal. Gov. Code section 54957(b)(1)Titles: City Manager, City Attorney and City ClerkADJOURNMENT INFORMATION REPORTS Information reports are provided for informational purposes only to the Council and the public but are not listed for action during this meeting’s agenda. 5.Sales Tax Digest 2024 Q1 (January to March) OTHER INFORMATION Standing Committee Meetings this week     Rail Committee September 17, 2024     Finance Committee September 17, 2024     Retail Committee September 18, 2024     City/Schools Liasion Committee September 19, 2024 Public Comment Letters Schedule of Meetings PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments for agendized items using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully. 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@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 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 $250 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. 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 $250 made within the last 12 months, you must disclose the campaign contribution before making your comments.  3 September 16, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCILRegular MeetingMonday, September 16, 2024Council Chambers & Hybrid5:30 PMPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. Information on how the public may observe and participate in themeeting is located at the end of the agenda. The meeting will be broadcast on Cable TVChannel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed toMidpen Media Center https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN   (https://cityofpaloalto.zoom.us/j/362027238)   Meeting ID: 362 027 238    Phone:1(669)900‐6833PUBLIC COMMENTSGeneral Public Comment for items not on the agenda will be accepted in person for up to threeminutes or an amount of time determined by the Chair. General public comment will be heardfor 30 minutes. Additional public comment, if any, will be heard at the end of the agenda. Publiccomments for agendized items will be accepted both in person and via Zoom for up to threeminutes or an amount of time determined by the Chair. Requests to speak will be taken until 5minutes after the staff’s presentation or as determined by the Chair. Written public commentscan be submitted in advance to city.council@CityofPaloAlto.org and will be provided to theCouncil and available for inspection on the City’s website. Please clearly indicate which agendaitem you are referencing in your subject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the  Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERSPECIAL ORDERS OF THE DAY (5:30 ‐ 5:35 PM)1.Resolution in Support of Build the Future Santa Clara CountyAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (5:35 ‐ 6:05 PM)Members of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on # ofspeakers.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 (6:05 ‐ 6:10 PM)Members of the public may not speak to the item(s).STUDY SESSION (ITEM 2: 6:10 ‐ 6:55 PM, ITEM 3: 6:55 ‐ 8:55 PM)2.Caltrain Electrification and Local Coordination Updates3.Update and Receive Council Input on Airport Long‐Range Plan ProjectCITY MANAGER COMMENTS (8:55 ‐ 9:10 PM)BREAK (15 MINUTES)CLOSED SESSION (9:25 ‐ 11:25 PM)4.PUBLIC EMPLOYEE PERFORMANCE EVALUATIONSAuthority: Cal. Gov. Code section 54957(b)(1)Titles: City Manager, City Attorney and City ClerkADJOURNMENTINFORMATION REPORTSInformation reports are provided for informational purposes only to the Council and the public but are not listed for actionduring this meeting’s agenda.5.Sales Tax Digest 2024 Q1 (January to March)OTHER INFORMATIONStanding Committee Meetings this week    Rail Committee September 17, 2024    Finance Committee September 17, 2024    Retail Committee September 18, 2024    City/Schools Liasion Committee September 19, 2024Public Comment Letters Schedule of Meetings PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments for agendized items using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully. 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@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 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 $250 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. 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 $250 made within the last 12 months, you must disclose the campaign contribution before making your comments.  4 September 16, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCILRegular MeetingMonday, September 16, 2024Council Chambers & Hybrid5:30 PMPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. Information on how the public may observe and participate in themeeting is located at the end of the agenda. The meeting will be broadcast on Cable TVChannel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed toMidpen Media Center https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN   (https://cityofpaloalto.zoom.us/j/362027238)   Meeting ID: 362 027 238    Phone:1(669)900‐6833PUBLIC COMMENTSGeneral Public Comment for items not on the agenda will be accepted in person for up to threeminutes or an amount of time determined by the Chair. General public comment will be heardfor 30 minutes. Additional public comment, if any, will be heard at the end of the agenda. Publiccomments for agendized items will be accepted both in person and via Zoom for up to threeminutes or an amount of time determined by the Chair. Requests to speak will be taken until 5minutes after the staff’s presentation or as determined by the Chair. Written public commentscan be submitted in advance to city.council@CityofPaloAlto.org and will be provided to theCouncil and available for inspection on the City’s website. Please clearly indicate which agendaitem you are referencing in your subject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the  Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERSPECIAL ORDERS OF THE DAY (5:30 ‐ 5:35 PM)1.Resolution in Support of Build the Future Santa Clara CountyAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (5:35 ‐ 6:05 PM)Members of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on # ofspeakers.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 (6:05 ‐ 6:10 PM)Members of the public may not speak to the item(s).STUDY SESSION (ITEM 2: 6:10 ‐ 6:55 PM, ITEM 3: 6:55 ‐ 8:55 PM)2.Caltrain Electrification and Local Coordination Updates3.Update and Receive Council Input on Airport Long‐Range Plan ProjectCITY MANAGER COMMENTS (8:55 ‐ 9:10 PM)BREAK (15 MINUTES)CLOSED SESSION (9:25 ‐ 11:25 PM)4.PUBLIC EMPLOYEE PERFORMANCE EVALUATIONSAuthority: Cal. Gov. Code section 54957(b)(1)Titles: City Manager, City Attorney and City ClerkADJOURNMENTINFORMATION REPORTSInformation reports are provided for informational purposes only to the Council and the public but are not listed for actionduring this meeting’s agenda.5.Sales Tax Digest 2024 Q1 (January to March)OTHER INFORMATIONStanding Committee Meetings this week    Rail Committee September 17, 2024    Finance Committee September 17, 2024    Retail Committee September 18, 2024    City/Schools Liasion Committee September 19, 2024Public Comment LettersSchedule of MeetingsPUBLIC COMMENT INSTRUCTIONSMembers of the Public may provide public comments to teleconference meetings via email,teleconference, or by phone.1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.2. For in person public comments please complete a speaker request card located on thetable at the entrance to the Council Chambers and deliver it to the Clerk prior todiscussion of the item.3. Spoken public comments for agendized items using a computer or smart phone willbe accepted through the teleconference meeting. To address the Council, click on the linkbelow 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 usingyour 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 inolder browsers including Internet Explorer. Or download the Zoom application ontoyour smart phone from the Apple App Store or Google Play Store and enter in theMeeting ID below.You may be asked to enter an email address and name. We request that youidentify yourself by name as this will be visible online and will be used to notify youthat it is your turn to speak.When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk willactivate and unmute speakers in turn. Speakers will be notified shortly before theyare called to speak.When called, please limit your remarks to the time limit allotted. A timer will beshown on the computer to help keep track of your comments.4. Spoken public comments for agendized items using a phone use the telephone numberlisted below. When you wish to speak on an agenda item hit *9 on your phone so weknow that you wish to speak. You will be asked to provide your first and last name beforeaddressing the Council. You will be advised how long you have to speak. When calledplease limit your remarks to the agenda item and time limit allotted.CLICK HERE TO JOIN    Meeting ID: 362‐027‐238   Phone: 1‐669‐900‐6833Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its publicprograms, services and meetings in a manner that is readily accessible to all. Persons withdisabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 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 $250 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. 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 $250 made within the last 12 months, you must disclose the campaign contribution before making your comments.  5 September 16, 2024 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. City Council Staff Report Report Type: SPECIAL ORDERS OF THE DAY Lead Department: City Clerk Meeting Date: September 16, 2024 Report #:2409-3454 TITLE Resolution in Support of Build the Future Santa Clara County RECOMMENDATION On behalf of the Mayor, this resolution supporting the Build the Future Santa Clara County initiative is presented for consideration for a vote of approval. ATTACHMENTS Attachment A: Resolution in Support of Build the Future Santa Clara County APPROVED BY: Mahealani Ah Yun, City Clerk Item 1 Item 1 Staff Report        Item 1: Staff Report Pg. 1  Packet Pg. 6 of 85  Resolution IN SUPPORT OF BUILD THE FUTURE SANTA CLARA COUNTY WHEREAS, the Council for a Strong America issued a report in early 2023 which details that the shortage of infant-toddler child care costs the United States $122 billion in lost earnings, productivity, and revenue every year; and WHEREAS, this shortage translates to a $15 billion economic threat to California and a $3 billion threat to Santa Clara County; and WHEREAS, a family living in Palo Alto needs to pay an average of $38,400 per child year for infant care, $30,600 per year for one preschooler's childcare; and $10,500 per year for one school age student’s afterschool childcare. WHEREAS, the two most significant monthly expenses faced by working families are rent and child care; and WHEREAS, the lack of an affordable child care option leads to underemployment, greater housing instability, less consumer spending, depressed business productivity and the near impossibility of seeking, securing and maintaining employment; and WHEREAS, investing in affordable childcare provides vital infrastructure to working parents and supports early childhood development, allows families to remain the Bay Area, creates a stronger economy, improves business productivity and consumer spending, decreases poverty, leads to safer communities, and provides additional revenue for cities; and WHEREAS, cities have a direct interest in building strong local economies, supporting and benefiting from local small businesses, attracting and retaining families and employers; and WHEREAS, one of the most impactful tools we can deploy to solve our greatest economic and societal challenges is investing in broadly accessible, high quality child care immediately; and WHEREAS, investments in the child care sector should prioritize supporting our most underserved children and their families, as demonstrated locally with the City’s Child Care Subsidy Program; and WHEREAS, the City of Palo Alto has actively demonstrated the importance of Early Care and Education since the 1970’s by commissioning and working on goals linked to a series of Child Care Master Plans, in addition to their support for ongoing work of the Palo Alto Early Care and Education Committee (PAACECE), the City’s key arm to work on child care issues; and WHEREAS, the City of Palo Alto has long recognized the importance of early learning and education as articulated in the Comprehensive Plan 2030 Policy #’s T-2.5 and C-1.15; and Item 1 Attachment A - Resolution in Support of Build the Future Santa Clara County        Item 1: Staff Report Pg. 2  Packet Pg. 7 of 85  WHEREAS, the City of Palo Alto understands that the ability to afford quality childcare is a crucial need for its workforce and has implemented a program which assists regular employees with child care expenses; and NOW, THEREFORE, BE IT RESOLVED that the City of Palo Alto continue to support efforts to provide universal child care (aka access to high-quality child care) to all children and families in Palo Alto; and be it further RESOLVED, that the City of Palo Alto will continue to empower City departments to promote the importance of childcare businesses in the city and provide support for providers who desire to operate within the city; and RESOLVED, that the City of Palo Alto will continue to empower and promote the importance of child care businesses through the work of the Palo Alto Advisory Committee on Early Care & Education (PAACECE) which advises the City on early care issues under the oversight of the Community Services Department and provides support for providers who desire to operate within this city; and RESOLVED, that the City of Palo Alto joins with Build the Future Santa Clara County through PAACECE in advocating for solutions to address our child care crisis, including but not limited to working with a diverse array of partners for the purpose of addressing this economic and social crisis. INTRODUCED AND PASSED: September 16, 2024 ATTEST: APPROVED: ___________________ _________________ City Clerk Mayor APPROVED AS TO FORM: ___________________ _________________ City Manager City Attorney Item 1 Attachment A - Resolution in Support of Build the Future Santa Clara County        Item 1: Staff Report Pg. 3  Packet Pg. 8 of 85  City Council Staff Report Report Type: STUDY SESSION Lead Department: Transportation Meeting Date: September 16, 2024 Report #:2409-3456 TITLE Caltrain Electrification and Local Coordination Updates ATTACHMENTS Attachment A: Presentation Caltrain Electrification + City Partnerships APPROVED BY: Philip Kamhi Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 1  Packet Pg. 9 of 85  Palo Alto City CouncilSeptember 16, 2024 Caltrain Electrification + City Partnerships Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 2  Packet Pg. 10 of 85  Caltrain Context •77 miles of track from end to end •31 stations •Bi-directional commute •41 at-grade crossings •Financial Challenges •Pre-pandemic 73% farebox recovery (nation leading) •Today: 23% farebox recovery (facing upcoming average $77M annual deficit) 2 Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 3  Packet Pg. 11 of 85  Ridership Growth / Cost Containment •Board Adopted Equity, Growth, and Recovery Policy •Revised schedule:Standardize, focused on more midday, evening and weekend service (diversify ridership) •Regional Coordination: Coordinated transfers, better signage Millbrae, GM group, Bay Pass participation, Clipper Start, fare integration •City Partnerships and toolkit: www.caltrain.com/citypartnership •Pass Forward Program: Bringing in new riders by providing free passes for low- income and equity priority community riders •Customer Experience/Fare Changes: $1 youth pass;300 new bicycle eLockers, new ticket options, new visual display signs being installed, station work, positive brand recognition •Cost Containment: Smaller trainsets, scheduling efficiencies, reduced overtime, internal efficiency programs •Electrification Planned September 21, 2024 Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 4  Packet Pg. 12 of 85  Transformational Moment Caltrain is the oldest continuously operating passenger railroad in the West (160 years) Steam 1864 Diesel 1950s Electric 2024 7 First time in a generation any US system fully converted from diesel to electric system Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 5  Packet Pg. 13 of 85  INSTRUCT IONSKey Milestones Complete: •Foundations (3,000+) •Poles (2,500+) •Traction Power Facilities (10) •Overhead Wire (2.5 million feet) •Upgraded the Signal System San Francisco to San Jose (31 at grade crossings) •12 trainsets delivered (more coming) •Over 1,000 First Responders Trained •Soft Launch (August 2024) Upcoming: •Additional trainsets and testing (Throughout 2024) •Fully Electric Passenger Service: September 21, 2024 5 Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 6  Packet Pg. 14 of 85  Public Train Tours –12,000 People (San Jose,San Francisco;San Carlos) Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 7  Packet Pg. 15 of 85  7 Electrified Service Plan Benefits Express from SF to SJ in under an hour Quicker local service, 77 minutes instead of 100 Save more than 20 minutes on trips from Southern Santa Clara County to SF Ride More, Wait Less First Class for Everyone Clean and Green Improved service for all riders 7 GHG emissions reduced by 250K MTCO2 annually –equivalent to taking 55,000 cars off the road each year Improves local air quality Quieter trains, both onboard and off Free Wi-Fi Smoother, quieter experience Outlets at every seat Digital trip information onboard Spacious, accessible bathrooms 20% more train service 26% more train service at equity priority stations Half-hourly service during weekends and off-peak Get There Faster Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 8  Packet Pg. 16 of 85  Electrified Service Plan Palo Alto 8 Weekday Schedule: www.caltrain.com/media/33909 Weekend Schedule:www.caltrain.com/media/33908 Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 9  Packet Pg. 17 of 85  City Fact Sheets www.caltrain.com/servicebenefits Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 10  Packet Pg. 18 of 85  Public Outreach Safety Campaign •Community Meetings •Residential Mailers •Onboard Outreach •School Campaign •Public Service Announcements •Right-of-way outreach Safety Video at caltrain.com/safety Right-of-Way Flyer Residential Mailer 10 Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 11  Packet Pg. 19 of 85  11 •Main Events: o Palo Alto Station Sept 21 2pm -6pm o Eshoo Train Ride Sept 21 o San Mateo Station Sept 22 2pm -6pm •Additional events at every city along the corridor •100% Electric fleet from San Francisco to San Jose •Faster, More Frequent Schedule •Free Caltrain Rides September Launch Parties -September 21 & 22 www.caltrain.com/launchparty Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 12  Packet Pg. 20 of 85  Connect with Caltrain Electrification 12 •Learn more at caltrain.com/electrification •Sign-up for Project Updates: caltrain.com/get-involved •Share Caltrain Electrification Benefits and News Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 13  Packet Pg. 21 of 85  City Partnership/Toolkit Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 14  Packet Pg. 22 of 85  Vital Role of Caltrain -City Partnerships The ability of Caltrain to sustain and expand service will depend in large part on cities actively supporting expansion of ridership to groups beyond Caltrain’s traditional core riders. Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 15  Packet Pg. 23 of 85  Caltrain -City Partnership Toolkit In partnership we can increase transit ridership and: ●Reduce traffic and parking demand ●Support downtown recovery (vibrancy and tax revenues) ●Improve employee recruitment and retention ●Incentivize workers to return to the office ●Reduce Greenhouse Gas Emissions ●More Info at: caltrain.com/citypartnership Creating vibrant, diverse, people-centered communities where people gather, work and connect 15 Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 16  Packet Pg. 24 of 85  ●City Worker Go Passes ●Transportation Demand Management ●Development Agreements ●Local Ordinances ●Transportation Management Association ●Station Access ●Parking Management ●Transit Oriented Development Partnership Models 16 Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 17  Packet Pg. 25 of 85  Request: Palo Alto Support Caltrain-City Principles Palo Alto has been a leader on the corridor Caltrain staff offer to present to the Rail Committee to provide more information and feedback on Caltrain/City partnership principles Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 18  Packet Pg. 26 of 85  18 Draft Policy Overview Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 19  Packet Pg. 27 of 85  19 Caltrain is a customer-focused rail system. Our mission is to offer safe, reliable, accessible, and sustainable transportation service that enhances quality of life for all. The Caltrain Station Access Policy supports Caltrain’s vision of being a vital link in the regional and statewide rail network by: •Improving connectivity to communities and other transit systems.•Contributing to the region’s economic vitality.•Partnering with local communities to ensure that diverse constituencies receive a world-class travel experience. Policy Purpose Statement Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 20  Packet Pg. 28 of 85  Safe Routes To, From, and Through Stations Goals C a l t r a i n A c c e s s P o l i c y U p d a t e 20 World-Class Customer Access Experience for All Users Ridership Growth through Strategic Access Investments Equitable Access Aligned with Diverse Community Needs Healthy and Sustainable Modes of Access Strategic Partnerships to Advance Station Access 1 RecapGoals and Objectives 2 3 4 5 6 Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 21  Packet Pg. 29 of 85  21 The Access Hierarchy is the systemwide aspirational framework to: 1)Guide station area planning and investment decisions. 2)Be used as a tool for decision making and weighing the tradeoffs of access investments to ensure sustainable modes are the highest priority. 3)Ensure proposed access improvements prioritize pedestrians, biking/ shared micromobility, and transit facilities as the highest priority. Access Hierarchy All Caltrain riders are pedestrians at some point in their journey. This includes people walking on foot, using wheelchairs and other mobility devices, and children in strollers. All forms of shared micromobility such as bike share and scooter share, and private bicycles and scooters. All connecting transit and shuttle services to Caltrain stations including bus, paratransit, private shuttles, light-rail, and other heavy-rail operators. Taxis, all forms of ride-hailing services, and private drop-off. Private and shared vehicle parking facilities. Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 22  Packet Pg. 30 of 85  22 Implementation Plan The following eight next steps support the application of the Station Access Policy and are organized in short, medium, and long-term time periods. Short term (0-2 years) •Dissemination of the Station Access Policy •Update the Caltrain Design Guidelines and Criteria •Develop a Parking and Curbside Management Strategy •Develop a Station Access Database Mid-term (2-5 years) •Document the Process for Access Improvements •Conduct Station Needs Assessments •Complete Project Identification, Evaluation, and Prioritization Long-term (5+ years) •Project Delivery and Policy Review Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 23  Packet Pg. 31 of 85  23 The Station Access Toolkit provides examples of actions to inform decision making that users of the Station Access Policy may select from when identifying possible access improvements. The Access Toolkit is comprised of actions organized into five categories: 1)Customer Experience 2)Active Transportation 3)Transit and Shuttles 4)Private Vehicles and Parking 5)Partnerships Station Access Toolkit Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 24  Packet Pg. 32 of 85  Questions Item 2 Attachment A - Presentation Caltrain Electrification City Partnerships        Item 2: Staff Report Pg. 25  Packet Pg. 33 of 85  City Council Staff Report From: City Manager Report Type: STUDY SESSION Lead Department: Public Works Meeting Date: September 16, 2024 Report #:2408-3410 TITLE Update and Receive Council Input on Airport Long-Range Plan Project RECOMMENDATION Staff recommends that Council receive an update on the Airport Long-Range Planning process and provide input to support development of a preferred alternative. EXECUTIVE SUMMARY Since March 2023, staff has been engaged in developing the Long-Range Facilities and Sustainability Plan (Long-Range Plan) for the Palo Alto Airport. This initiative aims to align Federal Aviation Administration (FAA) criteria with other City of Palo Alto planning documents, including the 2030 Comprehensive Plan, Baylands Master Plan, and Sustainability and Climate Action Plan. The project is also intended to prepare the airport for an expected transition to electrified aircraft, taking advantage of opportunities for solar electricity generation and underground infrastructure already installed during the multi-year apron reconstruction project. This project is federally funded by the FAA and adheres to federal guidelines for updating the Airport Layout Plan (ALP) and overall airport planning. The ALP is the guiding document that depicts future projects at the airport, and is an FAA required document. The project began with a comprehensive assessment of the current airport conditions and facilities. This was followed by forecasting airport operations to project demand over the next 20 years and identifying the critical aircraft for the airport. Based on these forecasts and the critical aircraft, potential facility improvements were developed based on FAA criteria. The potential improvements include extending the runway length from 2,443 feet to 3,500 feet. Additional FAA criteria highlighted a deficiency in runway width by 5 feet and a shortfall in runway-to-taxiway separation by 100 feet. Although the FAA criteria suggest considering a second runway due to current operational levels, the City of Palo Alto’s 2030 Comprehensive Plan restricts the airport to a single runway, and thus, a second runway was not evaluated in this project. Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 1  Packet Pg. 34 of 85  Five alternatives were developed with the FAA criteria and potential improvements in mind. While the City is not obligated to adopt a plan that meets the FAA criteria, the Long-Range Plan process is required to develop and consider alternatives that include them. The alternatives are intended to facilitate conversations, illustrate various impacts, and gather community and Council input. As part of the alternative development, staff reviewed the possibility of solar and the accommodation of eVTOL (electric vertical takeoff and landing) aircraft to support the transition to alternative fuels and a more sustainable future of aviation. Airport and Utilities Department staff are currently working to evaluate solar and microgrid technology on the airfield. Staff does not have a preferred alternative at this time. One will be developed after Council input from this Study Session. The preferred alternative will be presented at additional public meetings and presentations to neighboring jurisdictions before coming back to City Council for acceptance. Environmental review will follow. Community engagement and public information sharing included five public meetings, a dedicated project website, opt in to an email list sharing regular updates, and an online survey. Input was solicited at the public meetings and through email. A 94-octane unleaded fuel option has been available at the airport since January 2024, but not all aircraft based at the airport can use it. Since that time, staff has been working on a plan to promote that fuel and safely transition to a 100-octane unleaded fuel as soon as possible. Staff seeks input from the Council on the proposed alternatives, next steps, and other elements before developing a preferred alternative. Specific questions of interest include Councilmembers’ support or lack thereof for extending the runway, implementing runway safety improvements, relocating the terminal building, providing a vertiport location to support future eVTOL operations, and transitioning the airport to a generator of renewable energy to support an electric future. BACKGROUND On March 6, 2023, staff conducted a study session1 with the City Council that provided a comprehensive airport update. This update included information on the Long-Range Plan project that was beginning. Council provided feedback on topics including the airport’s voluntary noise abatement program, opportunities with solar and microgrid, potential release of airport land for parkland dedication, and community benefits of the airport. 1 City Council, May 17, 2023; Agenda Item #4; SR#2302-0948, https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/palo-alto-airport/information-study-report- airport-march-2023-1.pdf Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 2  Packet Pg. 35 of 85  To date, the Long-Range Plan project team conducted five public meetings. The Long-Range Plan project web page2 includes summaries and presentations from each of the meetings. The first public meeting on May 17, 2023 at the Palo Alto Art Center introduced the project goals and steps. The meeting gathered feedback through comment cards and an online form. Key topics included the need for an Instrument Flight Rule (IFR) holding spot, potential expansion or extension of the runway, and diverse land uses like homes on the hangars. Attendees also requested better public access for community events, improved noise abatement, and addressing sea level rise. Concerns were raised about maintenance and funding. Suggestions also included integrating conference spaces with the terminal, ensuring availability of alternative fuels, and maintaining airport operations. The second public meeting was held on August 24, 2023 in East Palo Alto at Bloomhouse. Due to limited participation, the same information was shared at additional meetings in Menlo Park and East Palo Alto on September 21, 2023. The second meeting provided an overview of existing conditions and inventory at the airport, the forecast of future operations, and the selection of the critical aircraft. An interactive exercise was included, asking participants to consider aspirational news headlines for the airport in 10 years. Proposed headlines included “Commercial Service is Brought to PAO”, “Airport Closes and Baylands Expands to Address Climate Change and Sea Level Rise”, “PAO Is a Hub for Innovation Aviation” and “Welcome Community – It’s a Public Airport.” Key topics from the meeting included East Palo Alto’s inclusion in the Long-Range Plan, environmental concerns such as pollution and noise, the relationship between the airport and the Baylands, and proposals for new hangars and extended runways. On October 18, 2023, the project team hosted the third public meeting at the Baylands Café to outline the FAA criteria and facility needs. Attendees participated in a visioning activity where they picked their top two sustainability priorities for the airport's long-term goals. Key priorities identified included electrification, noise reduction, a new terminal, remodeled hangars, potential runway extension, amenities like a restaurant and observation deck, solar panels, and addressing climate change and sea level rise. Public questions addressed topics such as the future of Reid-Hillview Airport, project funding, runway safety margins, and the role of the City of Palo Alto in the process. Concerns and suggestions from attendees included the need for more vehicle parking, alternative fuel options, wider roads, a new terminal with community amenities, solar implementation, and the potential impact of Long-Range Plan projects on noise and public engagement. On November 14, 2023, the project team conducted a sustainability charrette with stakeholders of the airport including community members surrounding the airport. The charrette was designed to allow a broad range of airport stakeholders an opportunity to provide input and feedback on airport sustainability objectives and visioning to date, as well as 2 Long-Range Plan web page, https://www.cityofpaloalto.org/Departments/Public-Works/Palo-Alto-Airport/Palo- Alto-Airport-Long-Range-Facilities-Sustainability-Plan-LRFSP Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 3  Packet Pg. 36 of 85  brainstorm new sustainability goals and possible strategies for implementation that are consistent with the airport’s vision and long-term planning. Participants were provided in advance with a briefing document and some key questions for discussion at the event. Key components included a flooding simulation, a brief overview of aviation sustainability, a brainstorming exercise, and a roadmap of next steps. Participants engaged in interactive breakout sessions where they were guided through the four-pronged Economic, Operational, Natural Resources, and Social (EONS) approach to aviation sustainability. Participants were asked to brainstorm sustainability goals for each category of EONS and identify actionable steps to achieve each goal. The workshop outcomes3 were shared with stakeholders and participants in a summary document via email. The fourth public meeting was held at the Palo Alto Art Center on February 21, 2024. Initial alternatives were introduced with various runway lengths demonstrating how the airport could potentially meet FAA criteria. The meeting also introduced the Vision, Mission, and Goals of the airport and the results of the sustainability charrette. Discussion focused on the benefits of the airport to nearby communities, such as emergency services and economic impacts, and concerns about the critical aircraft definition and its implications for airfield operations. Public meeting comments covered a range of issues including noise control, preferred runway options, environmental documentation, and considerations for helicopter and eVTOL (electric vertical takeoff and landing vehicle) aircraft. Suggestions included banning high-noise private aircraft, expediting the shift to unleaded fuels, and integrating rotorcraft and eVTOL planning. Participants also proposed improvements like better parking solutions, facilities for technical support, and increased hangar space, alongside a more comprehensive approach to noise mitigation and environmental impact. On June 20, 2024, the project team conducted the fifth public meeting to share updated alternatives based on comments received at the fourth meeting. Attendees voiced a variety of strong concerns and questions. Key issues included a need for better maps highlighting the airport's proximity to East Palo Alto, and dissatisfaction that local concerns, such as historic sites and pollution from leaded fuel, were not fully addressed. Some residents questioned the rationale behind proposed levee plans and the FAA and National Environmental Protection Act (NEPA) processes, expressing mistrust and confusion. There was a call for clearer explanations, particularly about flight operations, the difference between vertiports and heliports, and alternative plans that avoid major runway changes. Additionally, attendees expressed concerns about increased aircraft operations, noise impacts, and the airport's effects on neighboring communities that do not have jurisdiction over airport decisions. Requests included better communication overall, including through social media, additional meetings in East Palo Alto, and more accessible information about environmental and noise impacts. There were also 3 Sustainability Charrette Summary, https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/palo- alto-airport/lrfsp/pao-sustainability-charrette_whatweheardsummary_nov2023_final_1.pdf Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 4  Packet Pg. 37 of 85  specific comments about vertiport placements, potential noise from new aircraft types, and the need for cost transparency and environmental considerations. ANALYSIS The Long-Range Plan process for the Palo Alto Airport has the following key objectives: Assess the airport's issues, opportunities, and constraints. Evaluate the effects of recent national and local aviation trends. Determine the capacity of existing airport infrastructure. Identify the need for new improvements. Estimate costs and explore potential funding sources. Develop a timeline for implementing proposed projects. Ensure compliance with federal, state, and local regulations. When completed, the Long-Range Plan will include a detailed report on current and anticipated conditions, an Airport Layout Plan (ALP), and a schedule for prioritizing improvements and securing funding. The FAA requires the City to keep the ALP up to date at all times, and a current ALP is one of the requirements for grant funding. Any City-approved projects will need to be depicted on the ALP and receive FAA approval from the standpoint of safety, utility, and efficiency of the airport. An economic impact analysis was conducted to identify the economic impacts of aviation activity on the airport and surrounding community. Activity by aviation and non-aviation employers on the airport creates jobs, payrolls, and revenues. PAO serves as a dynamic hub for a range of valuable services and contributions that extend beyond numerical metrics. These include emergency services, medical transportation, education, and air mobility. Analysis completed demonstrated a total economic benefit of 176 jobs supported, and an annual output of $37.8 million. Direct on-airport economic benefits resulted from the activity of 12 businesses, City of Palo Alto staff, FAA Air Traffic Control Tower staff, and capital improvement projects. Direct on-airport output was determined to be $27.7 million, with support for 129 jobs. This initial phase of long-range planning for Palo Alto Airport focuses on gathering and organizing information about the current state of the airport and its surrounding community. It includes an overview of existing airport facilities, the surrounding airspace environment, and the airport's role within the broader aviation network. Additionally, it provides a comprehensive inventory of airside, landside, and support facilities, as well as details on airport access, wayfinding, and parking. The information collected during this initial phase serves as the foundation for further analysis and planning. This initial phase considered other City plans such as the Baylands Master Plan, the 2014 Airport Layout Plan, the City of Palo Alto Comprehensive Plan 2030, the draft Baylands Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 5  Packet Pg. 38 of 85  Comprehensive Conservation Plan, the Sustainability and Climate Action Plan, and the 2006 Palo Alto Airport Master Plan developed by the County of Santa Clara. Key issues and needs were identified through the inventory of existing conditions and discussions with airport staff, users, stakeholders, and the general public, and are summarized below: Sea level rise and levee obstructions may require a shift in the ultimate runway configuration. Analyze locations to site permanent helipad/vertiport. Demand for additional hangar space The possibility of the closure of nearby Reid-Hillview Airport may impact the demand and capacity for airside infrastructure at PAO. Need for a more permanent and user-friendly airport terminal. Repairs or upgrades to Building 17 to make it more attractive to tenants, possibly incorporated with new terminal facility. Create dedicated and permanent space for the Civil Air Patrol, Palo Alto Airport Association, and CalDART. Provide additional parking at the airport, as it is currently near capacity. Use existing airfield electrical infrastructure to support solar panels. Assess opportunities for Electric Vehicle (EV) and eVTOL charging stations. Confirm existing easements in place at the airport. Enhance airport’s community relations and better establish its role as a community resource/amenity. Continue the growth and branding of the airport as a hub to EV/tech companies. As per individual contracts, all airport tenants are billed for utilities by the City of Palo Alto, through the airport, which charges each tenant a specific percentage. Meter all facilities so that tenants will be charged for exact usage. A fire rescue boat and electric truck with emergency response capabilities will better enhance the safety of airport fire rescue operations. Provide more wayfinding signage for the airport; particularly, co-locate airport signage with existing municipal signage for Baylands Golf Links. Incorporate bicycle racks for tenants. Integrate facilities with the adjacent Baylands Golf Links and Baylands Nature Preserve, both of which are also city-owned. Aging equipment in the electrical vault may need replacement. Forecast The Forecast projects the future aviation demand for the airport through 2042, based on standards set by the FAA. It is an evaluation of historical trends in activity, industry trends, and local socioeconomic trends to understand what the demand on the airport could look like in 20 Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 6  Packet Pg. 39 of 85  years. The forecasted activity is not intended to suggest a specific growth target or activity level for the airport, but to serve as a guide for future planning. The forecast estimates a 1.13% annual increase in the number of based aircraft at the airport over the 20-year planning period. With 330 based aircraft in 2022, this would rise to 413 by 2042, though still below the historical peak of 527 aircraft in 2007. For airport operations, the forecast predicts a 1.07% annual increase during the first decade (2022-2032) and a 1.5% annual increase during the subsequent decade (2032-2042). This would result in operation levels reaching 181,995 by 2032 and 220,372 by 2042. The ten-year intervals are designed to account for potential future technologies that may utilize the airport, such as eVTOL companies, and to allow the airport flexibility in adjusting its plans for the second decade. The growth rate aligns with national trends at towered airports, and planning for this projection will enable the airport to accommodate the expected growth. Even with this projected growth, the forecasted levels would remain below the historical peak of 232,789 operations in 1992. As part of the forecast, the critical aircraft of the airport was determined to be the Pilatus PC- 12, which is a single engine turboprop aircraft. The airport’s critical aircraft, or design aircraft, represents the largest or most demanding aircraft currently using the airport facilities regularly for at least 500 operations annually. The Pilatus PC-12 had 842 IFR operations in 2022. There were more flights from the PC-12 under Visual Flight Rules (VFR), but those operations are not currently tracked. The airport has entered into a contract to use flight tracking software that will allow tracking of all flights. The critical aircraft influences key design aspects, including the sizing of runways and taxiways, as well as the placement of aircraft parking areas, hangar facilities, and protected airspace surfaces. Potential Improvements Based on FAA Criteria The Potential improvements were developed by analyzing the forecast, critical aircraft, and existing inventory to determine the facility and infrastructure improvements that should be made at the airport. This process involves evaluating the potential improvements across several major components, including airfield, airspace, landside facilities, general aviation, airport support facilities and equipment, utilities and infrastructure, and environmental impacts, shaping the alternatives development process by addressing the anticipated demands for each of these key areas. The review shows that the airport is currently operating at 71% of capacity and is expected to reach 96% of its capacity by 2042. Normally, the FAA would encourage an additional runway at those levels, but due to geographic constraints and the 2030 Comprehensive Plan the project team did not evaluate alternatives for a second runway. Based on the criteria applicable to the critical aircraft, it was determined that that runway was 5 feet deficient in width and 1,057 feet deficient in length. Additionally, the runway safety area Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 7  Packet Pg. 40 of 85  currently does not meet the 300-foot recommendation at the end of each runway. The runway to taxiway separation is also deficient by 100 feet. The airport has a demand for additional hangars, vehicle parking spaces, and a larger terminal. The airport should also work to integrate itself with the City of Palo Alto Bicycle and Pedestrian Transportation Plan4. Alternatives Staff developed five alternatives to demonstrate how the airport could incorporate the potential improvements based the FAA criteria for critical aircraft and address future demand as projected by the forecast. Other City plans such as the 2030 Comprehensive Plan and Sustainability and Climate Action Plan were also incorporated, and potential Santa Clara County Water District (Valley Water) and United States Army Corps of Engineers (USACE) projects were considered. The 2030 Comprehensive Plan states that the airport should be limited to one runway and only minor expansion should be considered to meet Federal and State airport design and safety standards. None of the alternatives evaluated an additional runway, but longer expansions were evaluated to show how the airport could meet FAA safety standards. The Plan also advises relocating the terminal away from the runway clear zone. Alternatives 2 through 4 relocate the terminal away from the runway protection zone. The 2030 Comprehensive Plan and the S/CAP include protection for sea level rise. Alternatives 2, 4, and 5 raise the runway to the new levee height to protect the City from sea level rise. The alternatives also attempt to meet the potential future demand of eVTOL aircraft by identifying potential locations for a vertiport, positioning the airport to transition to alternative fuels when those aircraft become operational. To support a more sustainable future of aviation, the alternatives review the potential location for solar systems at the airport. Staff is exploring the possibility of a microgrid at the airport with a backup power system to keep essential services available during power outages. The alternatives also explore the potential location of vertiports to support the transition to eVTOL aircraft when available. Staff has met with several companies interested in partnering with the City to introduce eVTOL aircraft at the airport. Other companies have approached the airport in support of eVTOL operations by providing sustainable alternative fuels like charging stations and possibly hydrogen. These companies have identified the Bay Area, and specifically the airport as an ideal location for eVTOL operations in the future. The alternatives were developed to meet the needs of the airport today and over the next 20 years. The range of alternatives shows various levels of balancing FAA criteria with airport and 4 CoPA Bicycle + Pedestrian Transportation Plan, https://www.cityofpaloalto.org/files/assets/public/v/1/transportation/projects/bicycle-pedestrian-transportation- plan_adopted-july-2012.pdf Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 8  Packet Pg. 41 of 85  City goals, environmental constraints, and implementation feasibility. Not every alternative will address all FAA criteria, but some show the 3,500 foot runway length resulting from the criteria. The alternatives also look to plan for increased operations, whether they be eVTOL or at the runway, a dual taxiway system to increase efficiency at the runway, and to locate a new terminal near the Air Traffic Control Tower to handle transient aircraft in a more efficient manner. The alternatives were developed with FAA criteria in mind. However, those criteria are not requirements. The alternatives are intended to assist with Council decision-making, promote community engagement, and gather input from users and the public, as well as to illustrate various impacts. The airport does not have a preferred alternative at this time. Alternative 1 (Exhibit A) is also known as the no-action or no-build alternative, which is required for evaluation purposes. This alternative assumes no improvements are made to the airport other than what is required for maintenance and ongoing operations. This alternative would not address any standard or safety issues on the airfield, does not address sea level rise or support sustainable operations, does not provide additional aircraft storage facilities, or provide dedicated facilities for eVTOL activity. There would also be no increase in construction or operational impacts to environmental assets and costs would be limited to maintaining existing facilities. Alternative 2 (Exhibit B) shifts the runway northeast to allow for the FAA-recommended separation between the runway and parallel taxiway and allows for a second parallel taxiway to decrease congestion. It also increases the runway length from the current 2,443 feet to 2,600 feet by displacing thresholds and uses the follow-on taxiway as additional runway pavement, requiring approximately 3.5 acres of fill (excluding proposed levee alignment from the Army Corps 2021 study) within the lagoon area adjacent to the duck pond to meet FAA grading standards. The runway would be raised to integrate into a new levee system as previously proposed by the Army Corps of Engineers in 2021 (shown in green on the drawing). This alternative does not provide the full runway length resulting from the FAA criteria, but does help to address sea level rise, shifts the runway farther from surrounding neighborhoods, provides an area designated for eVTOL activity, and increases aircraft storage capacity. Alternative 3 (Exhibit C) includes a 3,500 foot runway with a parallel taxiway on each side that has been shifted southwest to avoid impacts to the lagoon area off the RW 31 end, adjacent to the Duck Pond. However, this alternative requires acquisition of land from the off-airport golf course. While this alternative provides the runway length resulting from the FAA criteria, it would not integrate with the proposed levee system, shifts the runway approaches more over surrounding neighborhoods, divides the tie-down apron increasing taxi times and airfield inefficiencies, and would most likely require additional obstruction mitigation. The alternative does include a proposed area for eVTOL activity, an increase in aircraft storage capacity, and maintaining an adequate number of tie-downs. Alternative 4 (Exhibit D) includes a 3,500 foot runway with a parallel taxiway on each side, shifted northeast of the existing runway. It would impact the lagoon area adjacent to the Duck Pond and other facilities in that portion of the Baylands. This alternative would require Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 9  Packet Pg. 42 of 85  approximately 10.5 acres of fill (excluding proposed levee alignment from the Army Corps 2021 study) in the lagoon area. The runway would be elevated to integrate into the levee system and the shift would provide the recommended separation between the runway and existing parallel taxiway. This alternative has the greatest impact on the lagoon area near the Duck Pond, but shifts the runway farther from surrounding neighborhoods, provides an area designated for eVTOL activity, and increases aircraft storage capacity. Similar to Alternative 2, Alternative 5 (Exhibit E) shifts the runway northeast to allow for the recommended separation between the runway and parallel taxiway and allows for a second parallel taxilane to decrease congestion. It increases the runway length from 2,443 feet to 3,000 feet. This alternative would require approximately 6.5 acres of fill (excluding proposed levee alignment from the Army Corps 2021 study) in the lagoon area adjacent to the Duck Pond. The runway would be raised to integrate into a new levee system. This alternative helps to address sea level rise, shifts the runway farther from surrounding neighborhoods, provides an area designated for eVTOL activity, and increases aircraft storage capacity. The airport has received numerous comments expressing concern that FAA criteria used in the development of planning alternatives may require the City to make changes like lengthening the existing runway, and that the runway alternatives include filling in the Duck Pond. The alternatives were developed with FAA criteria in mind. However, those criteria are not requirements. The alternatives are intended to assist with Council decision-making and community engagement/input and to illustrate various impacts. The airport does not have a preferred alternative. Each alternative has differing conditions to consider. None of the runway alternatives being evaluated include filling in the Duck Pond. Alternatives 2 – 5 included the levee location considered by Valley Water and the USACE as part of the South San Francisco Bay Shoreline Phase II Investigations. However, in April 2024, the USACE concluded that there was no federal interest5 in the project. No levee alignment option has been advanced by the Council to date. This was included on the airport alternatives exhibits to demonstrate potential impacts considering the various adjacent projects in the vicinity. Some alternatives do include possible impacts to the area adjacent to the duck pond. During the study session on March 6, 2023, there was a question regarding land identified in the 2006 Santa Clara County PAO Master Plan as being designated for a second runway. There was a question about whether that land could be relinquished because a second runway is no longer being considered. Since 2006, FAA standards have changed and the runway to taxiway separation is currently deficient by 100 feet. The alternatives identify a shift of the runway to the east to meet the current FAA standards. The land east of the runway would most likely be 5 USACE South San Francisco Bay Shoreline Phase II Investigations, https://www.spn.usace.army.mil/Missions/Projects-and-Programs/Current-Projects/SOUTH-SAN-FRANCISCO-BAY- SHORELINE-PHASE-II/ Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 10  Packet Pg. 43 of 85  needed for the runway safety areas. This will be evaluated further as a preferred alternative is developed. Online Survey Results & Other Community Input Staff conducted a survey6 to gather public input on various alternatives for the airport. The survey was open from June 10, 2024 through August 10, 2024, and received 1,523 responses. It asked respondents to rank five alternatives, select a preferred runway configuration, and choose a preferred vertiport location. Additionally, participants were invited to comment on their rankings and selections and rank five focus areas for the Long-Range Plan. The alternatives listed in priority order: 1. Alternative 1 – No Action 2. Alternative 2 – 2600 foot Runway with displaced thresholds and Northeastern shift 3. Alternative 4 – 3500 foot Runway with Northeastern shift 4. Alternative 5 – 3000 foot Runway with Northeastern shift 5. Alternative 3 – 3500 foot Runway with Southwestern shift However, when looking at respondents first choice of alternatives the alternatives are ranked according to the table below. Of the 1,523 respondents, 1,328 provided answers, while 195 abstained from this question. Among those who ranked the alternatives, 43.3% chose Alternative 1 – No Action as their preferred option, while Alternative 4 – 3,500 FT Runway with Northeastern Shift was the second most preferred with 22.1%. Table 1. Survey Responses to Answer 1 Title Rank 1 %Key Findings and Comments Alternative 1: No Action 660 (1st)43.3% Strong preference for preserving the Baylands and Duck Pond. Significant opposition to airport expansion due to environmental and community concerns. Calls for minimal changes or alternative community uses for the airport land. Concerns about increased noise from more operations were prevalent. Alternative 2: 2600 foot Runway 174 (2nd)11.4%Concerns about the environmental impact of shifting the runway. 6 2024 Long Range Planning Survey Results, https://www.cityofpaloalto.org/files/assets/public/v/1/public- works/palo-alto-airport/lrfsp/palo-alto-airport-survey-results_1.pdf Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 11  Packet Pg. 44 of 85  Seen as a compromise that improves safety while keeping the airport small. Worries that a longer runway could attract larger or corporate aircraft. Increased noise pollution from larger aircraft was a concern. Alternative 3: 3500 foot Runway SW shift 62 (5th)4.1% Emphasis on protecting the Baylands and Duck Pond. Provides a balance between meeting FAA safety recommendations and minimizing environmental impact. Criticized for complexity and potential disruption to the apron. Alternative 4: 3500 foot Runway NE shift 337 (3rd)22.1% Preference for meeting FAA recommendations and modernizing the airport. Support for readiness for future electric vertical takeoff and landing (eVTOL) operations. Alternative 5: 3000 foot Runway NE shift 95 (4th)6.2%  Seen as a balance between FAA recommendations and maintaining the current aircraft fleet. Concerns that a 3,500 foot runway might attract larger jets. Emphasis on balancing airport needs with environmental and community concerns. No Answer 195 12.8% Strong preference for preserving the Baylands and Duck Pond. Strong preference for closing the airport. Total 1,523 When asked which alternative contained their preferred runway length and location without consideration for the rest of the elements, 51.2% of the responders chose Alternative 1 – No Action as their preferred alternative, and Alternative 4 – 3500 foot runway with northeastern shift was the second preferred alternative with 23.8%. When asked what other improvements should be considered or shown in the alternatives, the following is a partial list of comments received: Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 12  Packet Pg. 45 of 85  Eliminate lead fuel Consider large solar panel installation over apron Additional noise abatement measures More room for the vertiport area Additional aircraft hangars Aircraft maintenance facilities Charging infrastructure for vehicles and aircraft Consider space for hydrogen refueling facility Identify power requirements for electric vehicles and aircraft Improve security and fencing Seaplane dock or ferry dock in the Baylands Additional community/viewing areas associated with the airport Incorporate a fire station Install an LPV (localizer performance with vertical guidance) approach Better transit connections to the airport Increase vehicle parking Of the five sustainability and resilience focus areas presented for consideration, Maintaining Harmony with the Baylands received the most number 1 (or most important) votes at 51.4% with Operational Excellence (31.2%) and Our Communities and Our People (24.9%) getting the second and third most first-place votes, respectively. Note: Values do not add to 100% due to some respondents providing the same ranking to more than one focus area. Petition On July 23, 2024, a petition was started on Change.org to save the Palo Alto Baylands from Airport Expansion. The petition calls for the protection of the Palo Alto Baylands and duck ponds and strongly opposes any runway extension. Unleaded Fuel The airport is committed to reducing the use of leaded aviation fuel (avgas) in a safe and efficient manner, while adhering to federal regulations that prohibit restrictions on the sale of leaded fuel. This is governed by both FAA Grant Assurances and the FAA Reauthorization Act of 2024. Despite these constraints, PAO continues to explore alternative strategies to minimize the reliance on leaded fuels. Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 13  Packet Pg. 46 of 85  On May 16, 2024, the FAA Reauthorization Act7 was signed into law which required the sale of 100LL until December 31, 2030 or until a replacement is widely available. The FAA Reauthorization Act places a $5,000 fine per day on airports that restrict the sale of 100LL. As part of the EAGLE program, the FAA has outlined a safe transition to unleaded avgas, with a key component ensuring that 100LL is available for aircraft throughout the transition. The FAA has outlined 2 pathways8 for fuels to receive FAA authorization. The first path is through the Supplemental Type Certificate (STC) process. The STC process does not necessarily need industry standards through the American Society for Testing and Materials (ASTM). There can be a significant cost when pilots apply for the STC through the FAA that includes the application cost from the fuel manufacturer which can range from $100 to $600. The second process is the through FAA Fleet Authorization, established by Congress. This process, initiated through the FAA and participating OEMs, is designed to meet the PAFI requirements for fuel. Any fuel that receives fleet authorization must also have the ASTM standards. Additionally, there would be no application cost as there is with the STC process. Currently there are two approved unleaded avgas products approved: 94UL and G100UL. Both have received approval through the STC process. Airport staff regularly communicates with the two FBOs on the field, and requests that they bring a 100-octane unleaded fuel when they are able to purchase it. The airport has been developing a plan to transition away from unleaded fuel. Below is a draft graphic that depicts the airport’s current path to phasing out leaded fuel. An important next step is to evaluate the ability to initiate a Request for Proposals for an FBO that would be required to sell an unleaded fuel option. The current FBO leases expire on June 30, 2024, and a new contract could be entered into with a company to provide an unleaded fuel option as well as the necessary infrastructure for eVTOL aircraft. 7 S. 1939 – FAA Reauthorization Act of 2024, https://www.congress.gov/bill/118th-congress/senate- bill/1939/text/is 8 FAA Authorization for New Fuel Pathways, https://flyeagle.org/fuel-developers/ Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 14  Packet Pg. 47 of 85  Next Steps Following the study session, the project team will develop a preferred alternative based on the collected feedback and information received to date. A subsequent public meeting will be scheduled to present this draft preferred alternative and gain community input. An additional survey may be conducted to gather further input on the preferred alternative. The project team will also prepare informational reports for neighboring City Councils to solicit their review and feedback. Revisions to the preferred alternative will be made in response to community and City Council input before the final proposal is presented to the Palo Alto City Council for acceptance. After the acceptance of the preferred plan, the CEQA and NEPA review will be conducted for the preferred alternative. Once the environmental review has been completed the final plan will be brought to Council for their approval. In parallel, airport staff have submitted a grant application for the environmental review and design process for a new terminal building, in alignment with the City Comprehensive Plan 2030. This new terminal would be relocated to the east side of the airport to reduce taxiing distance for transient pilots, thereby saving fuel. An FAA grant application has been submitted under the Bipartisan Infrastructure Law to support this project, which is not typically funded by the FAA. Additionally, airport and Utilities Department are assessing the feasibility, size, and potential funding sources for a solar installation with battery backup and microgrid capabilities. This Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 15  Packet Pg. 48 of 85  initiative aims to power the airport, support the Regional Water Quality Control Plant, and provide electric vehicle charging stations. FISCAL/RESOURCE IMPACT This is an informational report, and there is no fiscal impact at this time. Investment in the airport will require additional funding though the amount and source are to be determined based on the direction and design. STAKEHOLDER ENGAGEMENT Community and stakeholder input has been vital throughout the project. Airport staff have hosted 5 public meetings to gather input from the community. A survey of the alternatives was advertised and open from June 10, 2024, to August 10, 2024 to gather community interest in 5 alternatives for the airport. After this study session, it is anticipated that the project team will host another public meeting to gather input on a preferred alternative. Also, informational reports will be provided to neighboring City Councils for their input and feedback. ENVIRONMENTAL REVIEW Environmental review will begin after the City Council has accepted the draft plan and preferred alternative. Acceptance of the draft plan does not represent final approval of the document, and staff will bring the final plan to City Council for their approval after CEQA and NEPA review is completed. ATTACHMENTS Exhibit A: Alternative 1 Exhibit B: Alternative 2 Exhibit C: Alternative 3 Exhibit D: Alternative 4 Exhibit E: Alternative 5 APPROVED BY: Brad Eggleston, Director Public Works/City Engineer Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 16  Packet Pg. 49 of 85  X ROFAROFAROFAROFAROFAROFAROFAROFAROFARO F A RO F A ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA RO F A RO F A RS ARSARSARSARSARSARSARSARSARSARSA RSA RSA RSA RSA RSA RSA RSA RSA RSA RSA Alternative 12,443 FT Runway, No Action Palo Alto Airport Long-Range Facilities & Sustainability Plan (LRFSP) 400'400'0'200' NORTH DRAFT Legend Existing Runway, Taxiway, & Apron Existing Airport Property Line (ALP, 2017) Future Runway Protection Zone (RPZ) Future Runway Safety Area (RSA)RSA Future Runway Object Free Area (ROFA)ROFA Future Horizontal Levee Existing Baylands Trail Challenges ·Does not address sea level rise with the integration of higher ground or levees ·Does not provide infrastructure needed to support sustainable aviation operations ·Does not shift runway approaches away from neighborhoods ·Does not address deficiencies outlined in FAA Advisory Circular recommendations ··Additional Runway Length +1,057FT ··Additional Runway Width +5FT ··Additional Runway to Taxiway Separation +100FT ·Does not replace infrastructure that is at the end of its life cycle, increasing operational cost Opportunities Alternative Description This layout maintains the airport in its current configuration. ·Low up front cost ·No impacts from new construction Existing ATCT Existing Fuel Facility Existing Terminal Em b a r c a d e r o R o a d Em b a r c a d e r o R o a d Item 3 Exhibit A - Alternative 1        Item 3: Staff Report Pg. 17  Packet Pg. 50 of 85  RSA RSA RSARSARSA RSA RSA RSA RSA RSA ROFAROFAROFAROFAROFAROFAROFAROFAROFAROFA RO F A RO F A ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA RO F A RO F A RS ARSARSARSARSARSARSARSARSARSARSA RS A RSA RSA RSA RSA RSA RSA RSA RSA RSA RSA X EQP B L D FUEL F A R M TERM I N A L ROFAROFAROFAROFAROFAROFAROFAROFAROFAROFARO F A RO F A ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA RO F A RO F A RS ARSARSARSARSARSARSARSARSARSARSARSA RSA RSA RSA RSA RSA RSA RSA RSA RSA RSA RSA Alternative 22,600 FT Runway with Displaced Thresholds and Northeastern Shift Palo Alto Airport Long-Range Facilities & Sustainability Plan (LRFSP) Source: C&S Engineers, Inc. 400'400'0'250' NORTH DRAFT Challenges ·Addresses sea level rise with the integration of higher ground and levees ·Provides vertiport needed to support sustainable aviation operations ·Shift runway approaches farther from neighborhoods ·Addresses some FAA recommendations ··Increases runway length by 157FT (15% of recommendation) ··Increases runway width to 75FT ··Increases runway separation +100FT ·Replace infrastructure that is at the end of its life cycle, lowering operational cost ·Provides additional taxilane to increase safety Opportunities Alternative Description This alternative raises the elevation of the runway to integrate it into a new levee system. Additionally, this alternative shifts the existing runway northeast to reach the FAA recommended taxiway separation. Runway length is increased from 2,443 feet to 2,600 feet by displacing thresholds and utilizing the follow on taxiway as additional runway pavement. This increase in runway length results in the addition of 15% of the FAA recommended runway length. ·Does not fully address deficiencies outlined in FAA Advisory Circular recommendations ··Only increases runway length by 15% of recommendation (+157FT of +1,057FT) Existing Fuel Facility Existing Terminal Proposed Eqp. Storage Existing ATCTExisting RWY 13-31 (To Be Removed) Em b a r c a d e r o R o a d Em b a r c a d e r o R o a d Proposed Aircraft Maintenance /Office Proposed Large Conventional Hangars Pro p o s e d V T O L Co n v e n t i o n a l H a n g a r s Legend Existing Pavment Existing Airport Property Line (ALP, 2017) Future Runway Protection Zone (RPZ) Future Runway Safety Area (RSA)RSA Future Runway Object Free Area (ROFA)ROFA Future Horizontal Levee Existing Baylands Trail Proposed Building Proposed Photovoltaic Array (Micro-Grid) Proposed Airfield Pavement Proposed Deconstruction Proposed Levee (Army Corps, 2021) Proposed Fill Area Existing Runway Location Proposed Vehicle Pavement Proposed Small Conventional / T- Hangars Proposed Terminal Proposed ATCT Existing ATCT Proposed Large Conventional Hangars & Flight Education Proposed Vertiport (eVTOL) Proposed Parking Structure & Ultimate Vertiport Item 3 Exhibit B - Alternative 2        Item 3: Staff Report Pg. 18  Packet Pg. 51 of 85  RSA RSA RSARSARSA RSA RSA RSA RSA RSA X EQP B L D FUEL F A R M TERM I N A L EQP B L D FUEL F A R M TERMINAL ROFAROFAROFAROFAROFAROFAROFAROFAROFAROFAROFAROFAROFARO F A RO F A ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA RO F A RO F A RS ARSARSARSARSARSARSARSARSARSARSARSARSARSARSA RSA RSA RSA RSA RSA RSA RSA RSA RSA RSA RSA RSA RSA RSA Alternative 33,500 FT Runway with Southwestern Shift Palo Alto Airport Long-Range Facilities & Sustainability Plan (LRFSP) Source: C&S Engineers, Inc. 400'400'0'200' NORTH DRAFT Proposed Terminal Proposed Eqp. Storage Proposed Vertiport (eVTOL) Proposed Hangars Existing ATCT Existing Fuel Facility Challenges ·Provides vertiport needed to support sustainable aviation operations ·Addresses all FAA recommendations ··Increases runway length by +1,057FT (100% of recommendation) ··Increases runway width to 75FT ··Increases runway separation +100FT ·Replace infrastructure that is at the end of its life cycle, lowering operational cost ·Provides additional taxilane to increase safety Opportunities Alternative Description This alternative does not raise the runway elevation in a way that can be integrated into a new levee system. This alternative shifts the existing runway southwest away from proposed levees. This shift south allows the runway to reach 100% of the FAA recommended runway length and avoid extending into the dock pond area. Runway length is increased from 2,443 feet to 3,500 feet. Taxiways are constructed on both sides of the runway to decrease airfield congestion and increase safety. ·Does not integrate runway within proposed levee system ·Requires the reconstruction of entire airfield ·Requires property acquisition from neighboring golf course ·Brings runway closer to nearby neighborhoods ·Splits airfield increasing taxi times and carbon emissions ·Requires additional obstruction mitigation Existing ATCTExisting RWY 13-31 (To Be Removed) Em b a r c a d e r o R o a d Em b a r c a d e r o R o a d Existing Terminal Legend Existing Pavment Existing Airport Property Line (ALP, 2017) Future Runway Protection Zone (RPZ) Future Runway Safety Area (RSA)RSA Future Runway Object Free Area (ROFA)ROFA Future Horizontal Levee Existing Baylands Trail Proposed Building Proposed Vehicle Pavement Proposed Airfield Pavement Proposed Deconstruction Proposed Levee (Army Corps, 2021) Proposed Fill Area Existing Runway Location Proposed Vertiport (eVTOL) Item 3 Exhibit C - Alternative 3        Item 3: Staff Report Pg. 19  Packet Pg. 52 of 85  RSA RSA RSARSARSA RSA RSA RSA RSA RSA X EQP B L D FUEL F A R M TERM I N A L ROFAROFAROFAROFAROFAROFAROFAROFAROFAROFAROFAROFAROFARO F A RO F A ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA RO F A RO F A RS ARSARSARSARSARSARSARSARSARSARSARSARSARSARSA RSA RSA RSA RSA RSA RSA RSA RSA RSA RSA RSA RSA RSA RSA Alternative 4 Palo Alto Airport Long-Range Facilities & Sustainability Plan (LRFSP) Source: C&S Engineers, Inc. 400'400'0'200' NORTH DRAFT Proposed Terminal Proposed Eqp. Storage Proposed Hangars Existing ATCT Existing Fuel Facility Challenges ·Provides vertiport needed to support sustainable aviation operations ·Relocates runway farther away from nearby neighborhoods ·Addresses all FAA recommendations ··Increases runway length by +1,057FT (100% of recommendation) ··Increases runway width to 75FT ··Increases runway separation +100FT ·Replace infrastructure that is at the end of its life cycle, lowering operational cost ·Provides additional taxiway to increase safety Opportunities Alternative Description This alternative raises the elevation of the runway to integrate it into a new levee system. Additionally, this layout shifts the existing runway northeast to reach the FAA recommended runway to taxiway separation. Runway length is increased from 2,443 feet to 3,500 feet, to provide 100% of the FAA recommended runway length. Two parallel taxiways are constructed on both sides of the runway to decrease airfield congestion and increase safety. ·Requires significant fill within duck pond area to implement (more fill than any other Alternative) ·Requires the removal of trees within ROFA. Proposed Vertiport (eVTOL) 3,500 FT Runway with Northeastern Shift Existing ATCTExisting RWY 13-31 (To Be Removed) Obstruction to Proposed Runway Em b a r c a d e r o R o a d Em b a r c a d e r o R o a d Existing Terminal Legend Existing Pavment Existing Airport Property Line (ALP, 2017) Future Runway Protection Zone (RPZ) Future Runway Safety Area (RSA)RSA Future Runway Object Free Area (ROFA)ROFA Future Horizontal Levee Existing Baylands Trail Proposed Building Proposed Vehicle Pavement Proposed Airfield Pavement Proposed Deconstruction Proposed Levee (Army Corps, 2021) Proposed Fill Area Existing Runway Location Item 3 Exhibit D - Alternative 4        Item 3: Staff Report Pg. 20  Packet Pg. 53 of 85  RSA RSA RSARSARSA RSA RSA RSA RSA RSA X ROFAROFAROFAROFAROFAROFAROFAROFAROFAROFAROFARO F A RO F A ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA ROFA RO F A RO F ARS ARSARSARSARSARSARSARSARSARSARSARSARSA RSA RSA RSA RSA RSA RSA RSA RSA RSA RSA RSA RSA EQP B L D FUEL F A R M TER M I N A L Alternative 53,000 FT Runway with Northeastern Shift Palo Alto Airport Long-Range Facilities & Sustainability Plan (LRFSP) Source: C&S Engineers, Inc. 400'400'0'200' NORTH DRAFT Existing Terminal Proposed Terminal Proposed Eqp. Storage Proposed Hangars Existing ATCT Existing Fuel Facility Proposed Vertiport (eVTOL) Proposed Terminal Proposed Eqp. Storage Proposed Hangars Existing ATCT Existing Fuel Facility Proposed Vertiport (eVTOL) Challenges ·Fully integrates runway into levee system ·Provides vertiport needed to support sustainable aviation operations ·Relocates runway farther away from nearby neighborhoods ·Addresses majority of FAA recommendations ··Increases runway length by +557FT (53% of recommendation) ··Increases runway width to 75FT ··Increases runway separation +100FT ·Replace infrastructure that is at the end of its life cycle, lowering operational cost ·Provides additional taxilane to increase safety Opportunities Alternative Description This alternative raises the elevation of the runway to integrate it into a new levee system. Additionally, this alternative shifts the existing runway northeast to reach the FAA recommended runway to taxiway separation. Runway length is increased from 2,443 feet to 3,000 feet, to provide 53% of the FAA recommended runway length. A taxiway and a taxilane are constructed on the southwestern side of the runway to decrease airfield congestion and increase safety. ·Requires significant fill within duck pond area to implement ·Does not provide full runway length as recommended by FAA (+ 1,057FT) Existing ATCTExisting RWY 13-31 (To Be Removed) Em b a r c a d e r o R o a d Em b a r c a d e r o R o a d Legend Existing Pavment Existing Airport Property Line (ALP, 2017) Future Runway Protection Zone (RPZ) Future Runway Safety Area (RSA)RSA Future Runway Object Free Area (ROFA)ROFA Future Horizontal Levee Existing Baylands Trail Proposed Building Proposed Vehicle Pavement Proposed Airfield Pavement Proposed Deconstruction Proposed Levee (Army Corps, 2021) Proposed Fill Area Existing Runway Location Item 3 Exhibit E - Alternative 5        Item 3: Staff Report Pg. 21  Packet Pg. 54 of 85  City Council Staff Report From: City Manager Report Type: INFORMATION REPORTS Lead Department: Administrative Services Meeting Date: September 16, 2024 Report #:2405-2990 TITLE Sales Tax Digest 2024 Q1 (January to March) DISCUSSION This report transmits information regarding the City of Palo Alto’s sales tax receipts for the first quarter (January-March) of 2024. Listed below are highlights from the report; detailed discussion and data can be found in the attached City of Palo Alto Sales Tax Digest and Legislative Update 2024 Q1 (Attachment A). Regional and statewide sales tax based upon adjusted economic benchmark year (Attachment A, p. 2) •Palo Alto: increased 7.8% •San Francisco Bay Area: decreased 3.5% •California statewide: decreased 3.8% City’s Most Significant Reasons for increases during this period (Attachment A, p. 2) •New Auto Sales segment increased by 24.9%, comprises 16.0% of total sales tax •Restaurant segment increased by 7.7%, comprises 17.3% of total sales tax County Pool (Attachment A, p. 3) •The City’s share of the county pool for this quarter is 6.0%, unchanged from Q1 2023 •Sales tax receipts from the County pool totaled $1.5 million ATTACHMENTS: Attachment A: 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update APPROVED BY: Lauren Lai, Administrative Services Director Item 5 Item 5 Staff Report        Item 5: Staff Report Pg. 1  Packet Pg. 55 of 85  CityꢀofꢀPaloꢀAltoꢀ SalesꢀTaxꢀDigestꢀSummaryꢀꢀꢀꢀꢀ CollectionsꢀthroughꢀMayꢀ2024ꢀ SalesꢀJanuaryꢀthroughꢀMarchꢀ2024ꢀ(2024Q1)ꢀ ꢀ California Overview For the year ending in the first quarter of 2024, cash receipts decreased 1.2% statewide and decreased 3.3% in S.F. Bay Area. However, when adjusted for non‐period related payments, the overall economic sales tax activity for the year ending in first quarter of 2024 decreased by 3.8% statewide and decreased by 3.5% in S.F. Bay Area. City of Palo Alto For the benchmark year ending in the first quarter of 2024, sales tax cash receipts for the city increased by 8.9% from the prior year. However, when adjusted for non‐period related payments, the overall economic sales tax activity in Palo Alto for the year ending in first quarter of 2024 increased by 7.8%. The most significant reasons for Palo Alto’s increase during this period were the restaurants and new auto sales segments, respectively. Restaurants increased by 7.7%, which comprises 17.3% of the total sales tax for the city. New auto sales for the same period increased by 24.9%, which comprises 16.0% of the total sales tax. Same quarter sales tax cash receipts increased by 0.7% in California from Q1 2023 to Q1 2024. The Palo Alto citywide sales tax cash receipts increased by 2.4% over the Q1 2023 to Q1 2024 period. Key reasons for the Palo Alto increase during this period were: 1) restaurants increased by 7.4%, which comprises 16.3% of the total sales tax for the city, and 2) new auto sales increased from Q1 2023 to Q1 2024 by 46.4%, which comprises 16.2% of the total sales tax for the city. According to the California New Car Dealers Association, 2024 Q1 California statewide new auto registrations reported a slight increase (0.7%) in new auto registrations from 428,561 in Q1 2023 to 431,638 in Q1 2024. The overall statewide new auto registrations are predicted to grow slightly (less 3%) in the remainder of the 2024 calendar year. Regional Overview The first chart on page two shows adjusted economic benchmark year amounts, which means that it shows the year ended first quarter of 2024 compared to the year ended first quarter of 2023 (benchmark years are rolling annual comparisons through the current quarter). The growth rates are different between the state and Palo Alto because the sales tax from businesses in Palo Alto performed better overall than the statewide average. ꢀwww.avenuinsights.com (800) 800-8181 Page 1 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 2  Packet Pg. 56 of 85  CityꢀofꢀPaloꢀAltoꢀ Regional Overview Chart (Economic) BENCHMARK YEAR 2024Q1 COMPARED TO BENCHMARK YEAR 2023Q1 ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 1st Quarter 2024 California Statewide Sacramento Valley% of Total / % Change Palo Alto S.F. Bay Area Central Valley South Coast Inland Empire North Coast General Retail Food Products Transportation Business to Business Misc/Other 26.0 / 1.9 17.3 / 6.6 19.7 / 17.8 33.5 / 6.1 3.5 / 26.7 100.0 / 7.8 28.9 / ‐1.4 21.2 / ‐0.6 23.3 / ‐7.5 15.8 / ‐6.3 10.8 / ‐3.9 100.0 / ‐3.8 26.0 / ‐4.1 22.4 / ‐0.2 19.4 / ‐4.8 21.2 / ‐2.9 11.0 / ‐7.4 100.0 / ‐3.5 28.2 / ‐2.2 16.8 / ‐1.7 27.0 / ‐4.7 14.2 / ‐7.1 13.7 / ‐4.5 100.0 / ‐3.9 37.8 / 0.4 14.6 / ‐4.1 22.3 / ‐8.2 14.7 / ‐7.3 10.5 / ‐7.7 100.0 / ‐4.3 27.1 / 0.1 23.3 / 1.0 24.2 / ‐6.3 15.4 / ‐6.0 10.0 / ‐0.3 100.0 / ‐2.3 34.7 / ‐5.9 17.9 / ‐9.0 23.6 / ‐19.1 10.6 / ‐16.9 13.2 / ‐9.2 100.0 / ‐11.5 27.3 / 3.2 18.3 / 1.5 28.7 / ‐5.1 10.4 / 0.7 15.3 / ‐1.1 100.0 / ‐0.5Total ECONOMIC SEGMENT ANALYSIS FOR YEAR ENDED 1st Quarter 2024 California Statewide Sacramento Valley Auto Sales ‐ New Palo Alto Leasing S.F. Bay Area Restaurants Central Valley South Coast Restaurants Inland Empire North Coast RestaurantsMiscellaneous Retail Miscellaneous RetailLargest Segment Restaurants % of Total / % Change 2nd Largest Segment % of Total / % Change 3rd Largest Segment % of Total / % Change 20.9 / 5.3 Auto Sales ‐ New 15.3 / 0.7 Auto Sales ‐ New 11.1 / ‐5.5 Miscellaneous Retail 16.7 / 0.8 Miscellaneous Retail 9.7 / ‐1.2 Auto Sales ‐ New 11.6 / ‐0.2 15.9 / 13.5 Department Stores 17.2 / 2.1 Auto Sales ‐ New 12.3 / ‐5.7 Miscellaneous Auto Sales ‐ 17.5 / ‐0.9 11.7 / 2.9 Department Stores 11.3 / 17.5 Auto Sales ‐ New Restaurants Restaurants 16.0 / 24.9 11.6 / ‐0.9 Miscellaneous Retail 10.9 / ‐5.5 11.6 / ‐6.3 Restaurants 15.6 / 7.7 Restaurants Retail 9.0 / 9.4 New 10.9 / ‐11.610.8 / 6.0 9.4 / ‐3.5 11.0 / 1.0 9.8 / ‐2.7 11.1 / ‐1.2 Gross Historical Sales Tax Cash Receipts by Benchmark Year and Quarter (Before Adjustments) $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $‐ Quarterly Benchmark Year www.avenuinsights.com (800) 800-8181 Page 2 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 3  Packet Pg. 57 of 85  CityꢀofꢀPaloꢀAltoꢀ Net Cash Receipts for Benchmark Year first Quarter 2024: $37,042,335 *Benchmark year (BMY) is the sum of the current and 3 previous quarters (2024Q1 BMY is sum of 2024 Q1, 2023 Q4, 2023 Q3, 2023 Q2) Net Pools & Adjustments 21.4% Leasing 20.9% Auto Sales ‐ New 16.0% All Other 34.0% Restaurants 15.7% Office Equipment 6.8%Apparel Stores 6.6%County Pool Results The California sales tax system is referred to as a ‘sales and use tax’ system which covers both sales tax and ‘use tax’. The County Pool revenues largely reflect use tax from qualifying transactions that do not involve a California based point of sale. Businesses report their use tax quarterly based on business activity conducted throughout the county. The County Pool is distributed each quarter based upon a formula where the jurisdiction’s quarterly percentage is based upon its total sales tax receipts for the quarter as a percentage of all sales tax receipts for all jurisdictions within the county. Thus, if local business activity (sales tax receipts) within Palo Alto increases in the quarter relative to the rest of the county, then the Palo Alto County pool percentage also will increase for the quarter compared to the rest of the county. The total county pool is multiplied by the city’s quarterly percentage to determine the jurisdiction share each quarter. In the first quarter of 2024, cash receipts for the overall County Pool increased by 1.9% from the same quarter in the prior year. The City’s share of the County Pool was unchanged from 6.0% to 6.0%. The City’s revenues from the County Pool increased from $1,499,631 in 2023Q1 to $1,523,986 in 2024Q1. www.avenuinsights.com (800) 800-8181 Page 3 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 4  Packet Pg. 58 of 85  CityꢀofꢀPaloꢀAltoꢀ TOP 25 SALES/USE TAX CONTRIBUTORS The following list identifies Palo Alto’s Top 25 Sales/Use Tax contributors. The list is in alphabetical order and represents the year ended first quarter of 2024. The Top 25 Sales/Use Tax contributors generate 61.2% of Palo Alto’s total sales and use tax revenue. Anderson Honda Apple Stores Archer Aviation Arco Am/Pm Mini Marts Audi Palo Alto Bloomingdale's Brilliant Earth Hermes Louis Vuitton Shreve & Co. Stanford Health Care Tesla Tesla Lease Trust Tiffany & Company Union 76 Service Stations Varian Medical Systems Volvo Cars Palo Alto Macy's Department Store Magnussen's Toyota Neiman Marcus Nordstrom Department Store Richemont Rivian Automotive Shell Service Stations HP Enterprise Services www.avenuinsights.com (800) 800-8181 Page 4 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 5  Packet Pg. 59 of 85  CityꢀofꢀPaloꢀAltoꢀ ꢀ Sales Tax from Largest Non‐Confidential Sales Tax Segments (Economic) $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $‐ Benchmark Year 2024Q1 Benchmark Year 2023Q1 ꢀwww.avenuinsights.com (800) 800-8181 Page 5 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 6  Packet Pg. 60 of 85  CityꢀofꢀPaloꢀAltoꢀ ꢀ Historical Analysis by Calendar Quarter Economic Category % 28.7% 20.9% 21.0% 15.6% 86.2% 13.8% 100.0% 2024Q1 2,373,414 1,727,252 1,739,261 1,288,207 7,128,134 1,143,798 8,271,932 2023Q4 2,262,034 1,951,428 2,315,882 1,348,051 7,877,395 1,867,172 9,744,567 2023Q3 2,619,833 1,870,170 1,834,297 1,277,173 7,601,473 1,986,175 9,587,647 2023Q2 2,439,519 1,546,096 2,017,885 1,349,926 7,353,426 2,084,763 9,438,189 2023Q1 2,350,567 1,302,322 1,640,927 1,195,458 6,489,274 1,586,938 8,076,212 2022Q4 2,571,178 1,517,005 2,305,038 1,260,287 7,653,508 1,935,580 9,589,088 2022Q3 2,194,817 1,597,816 1,802,777 1,230,824 6,826,234 1,862,181 8,688,414 2022Q2 2,095,020 1,724,861 1,920,316 1,227,240 6,967,438 686,044 2022Q1 2,031,199 1,701,538 1,639,417 1,018,577 6,390,731 1,721,924 8,112,655 2021Q4 2,136,501 1,687,189 2,282,253 1,083,309 7,189,252 1,806,328 8,995,580 2021Q3 1,689,561 1,812,731 1,687,461 999,729 Business To Business Miscellaneous/Other General Retail Food Products Subtotal Economic (Local Business) Net Pools & Adjustments Total Cash Receipts 6,189,482 584,508 7,653,481 6,773,990 Economic Segment Miscellaneous/Other Restaurants % 49.7% 14.1% 5.9% 2024Q1 4,114,784 1,162,863 489,040 2023Q4 4,409,850 1,214,598 689,939 2023Q3 4,635,983 1,154,189 480,649 2023Q2 4,197,978 1,214,502 512,077 2023Q1 3,818,384 1,073,621 448,322 2022Q4 4,490,992 1,114,637 545,797 2022Q3 4,087,158 1,102,248 381,616 435,730 423,601 233,387 99,811 2022Q2 4,008,008 1,093,944 479,710 495,508 454,349 250,715 104,253 80,950 2022Q1 3,949,786 902,707 432,956 392,724 367,144 191,755 91,634 2021Q4 3,969,954 947,771 679,381 540,782 525,295 190,610 108,203 227,256 7,189,252 1,806,328 8,995,580 2021Q3 3,752,178 884,911 412,016 406,274 388,703 181,460 90,773 Miscellaneous Retail Apparel Stores 5.3%440,402 586,863 478,973 509,894 423,470 538,573 Department Stores Service Stations 5.0%411,345 549,893 435,388 492,374 356,626 533,032 2.4%198,584 214,900 229,911 222,029 192,723 215,640 Food Markets 1.3%107,031 112,372 103,251 111,465 101,978 116,810 Business Services Subtotal Economic (Local Business) Net Pools & Adjustments Total Cash Receipts 2.5%204,085 98,980 83,130 93,106 74,150 98,027 62,683 62,025 73,169 86.2% 13.8% 100.0% 7,128,134 1,143,798 8,271,932 7,877,395 1,867,172 9,744,567 7,601,473 1,986,175 9,587,647 7,353,426 2,084,763 9,438,189 6,489,274 1,586,938 8,076,212 7,653,508 1,935,580 9,589,088 6,826,234 1,862,181 8,688,414 6,967,438 686,044 7,653,481 6,390,731 1,721,924 8,112,655 6,189,482 584,508 6,773,990 The chart above shows the categories and segments in quarterly economic basis amounts. The total amount is the net cash receipts, and it was obtained by adding up the categories/segments with the “Net Pools & Adjustments” amount. ꢀwww.avenuinsights.com (800) 800-8181 Page 6 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 7  Packet Pg. 61 of 85  CityꢀofꢀPaloꢀAltoꢀ Historical Analysis by Calendar BMY from 2015Q1 to 2024Q1 Economic Category Business To Business Miscellaneous/Other General Retail % 27.6% 19.2% 21.3% 14.3% 82.4% 17.6% 100.0% 2024Q1 10,222,577 7,095,324 7,897,514 5,290,982 30,506,397 6,535,938 37,042,335 2023Q1 9,631,298 5,953,026 7,658,078 4,965,161 28,207,563 5,799,633 34,007,195 2022Q1 7,896,075 6,558,902 7,381,386 4,063,916 25,900,278 5,452,388 31,352,667 2021Q1 7,611,571 5,918,263 4,346,606 2,409,724 20,286,163 6,194,515 26,480,678 2020Q1 8,308,564 6,876,494 7,343,919 4,766,327 27,295,304 5,517,214 32,812,518 2019Q1 6,943,096 7,953,725 8,114,526 4,866,749 27,878,096 7,279,063 35,157,159 2018Q1 6,184,439 6,545,872 8,396,707 4,739,636 25,866,655 2,976,828 28,843,483 2017Q1 5,317,252 6,320,172 8,408,295 4,604,281 24,650,000 4,680,293 29,330,293 2016Q1 4,919,417 5,805,795 8,036,424 4,550,695 23,312,331 4,040,097 27,352,428 2015Q1 4,159,698 5,357,777 8,083,498 4,267,423 21,868,395 3,795,270 25,663,665 Food Products Subtotal Economic (Local Business) Net Pools & Adjustments Total Economic Segment Miscellaneous/Other Restaurants % 48.3% 12.9% 5.8% 2024Q1 17,879,880 4,776,166 2,161,598 2,021,082 1,889,000 865,218 2023Q1 16,605,550 4,435,671 1,816,795 1,899,828 1,771,222 899,477 2022Q1 15,180,847 3,583,725 2,049,777 1,737,094 1,665,905 721,214 2021Q1 14,226,962 1,996,161 1,278,010 964,830 2020Q1 16,180,511 4,208,893 1,558,511 1,812,400 1,684,162 687,514 2019Q1 15,895,019 4,284,982 1,658,409 2,018,832 1,932,093 693,763 2018Q1 14,279,387 4,123,571 1,721,414 1,756,806 2,079,948 629,651 2017Q1 12,726,704 4,004,911 2,276,167 1,678,614 2,100,526 573,919 2016Q1 11,702,670 3,958,600 1,673,995 1,629,174 2,298,559 618,471 2015Q1 10,658,693 3,713,187 1,514,666 1,659,577 2,395,177 732,864 Miscellaneous Retail Apparel Stores 5.5% Department Stores Service Stations 5.1%769,134 2.3%406,403 Business Services Food Markets 1.3%474,673 355,787 581,268 321,146 718,091 940,138 765,322 786,093 925,420 711,989 1.2%438,779 423,233 380,450 323,518 445,221 454,861 510,556 503,066 505,442 482,242 Subtotal Economic (Local Business) Net Pools & Adjustments Total 82.4% 17.6% 100.0% 30,506,397 6,535,938 37,042,335 28,207,563 5,799,633 34,007,195 25,900,278 5,452,388 31,352,667 20,286,163 6,194,515 26,480,678 27,295,304 5,517,214 32,812,518 27,878,096 7,279,063 35,157,159 25,866,655 2,976,828 28,843,483 24,650,000 4,680,293 29,330,293 23,312,331 4,040,097 27,352,428 21,868,395 3,795,270 25,663,665 The chart above shows the categories and segments in benchmark year economic basis amounts. The total amount is the net cash receipts, and it was obtained by adding up the categories/segments with the “Net Pools & Adjustments” amount. Benchmark year (BMY) is the sum of the current and 3 previous quarters (2024Q1 BMY is sum of 2024 Q1, 2023 Q4, 2023 Q3, 2023 Q2). ꢀwww.avenuinsights.com (800) 800-8181 Page 7 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 8  Packet Pg. 62 of 85  CityꢀofꢀPaloꢀAltoꢀ Quarterly Analysis by Sales Tax Category: Change from 2023Q1 to 2024Q1 (Economic) Campbell ‐1.4% 6.2% 2.8% 1.3% ‐1.0% 20.5% 5.9% 1.0% 7.9% 1.9% 9.3% ‐3.8% ‐6.9% 15.6% 0.5% 5.2% 1.7% 0.9% 4.0% ‐0.9% 6.1% 3.1% 28.8% ‐5.5% ‐1.7% ‐0.2% 10.5% ‐1.1% 2,538,496 7,255,522 3,826,805 580,319 2,428,298 4.5% I.T. Infrastructure Office Equipment Restaurants Light Industry Electronic Equipment Miscellaneous Retail Energy Sales Cupertino 7,535,507 ‐3.7% I.T. Infrastructure Office Equipment Gilroy 3,724,834 2.7% Auto Sales ‐ New Miscellaneous Retail Misc. Vehicle Sales Los Altos 11.6% ‐16.1% 8.6% ‐20.9% 567,661 2.2% Electronic Equipment Recreation Products Business Services Heavy Industry Los Gatos Milpitas 9.4% ‐18.7%1,292,731 5,209,433 2,321,127 4,245,771 7,253,317 47,857,257 11,644,552 959,205 1,342,494 ‐3.7% Food Processing Eqp Bldg.Matls‐Retail Miscellaneous Other Auto Sales ‐ New 3.5%‐2.3% ‐15.8%3.8% ‐4.3% 5,321,308 ‐2.1% Miscellaneous Retail Electronic Equipment Office Equipment Bldg.Matls‐Whsle Heavy IndustryMorgan Hill Mountain View Palo Alto ‐0.9% 3.9% 6.9% 4.6% ‐3.3% ‐18.0%2,414,476 ‐3.9% Service Stations 4,671,866 ‐9.1% Restaurants 6,481,040 11.9% Auto Sales ‐ New Miscellaneous Retail Misc. Vehicle Sales ‐3.5% ‐36.4% ‐10.1%Leasing Business Services Leasing Office Equipment Bldg.Matls‐Whsle Auto Sales ‐ New Bldg.Matls‐Whsle Health & Government Miscellaneous Retail Heavy Industry 34.2%5.5%27.9% 2.2% Business Services RestaurantsSan Jose ‐9.2%38.6%44,338,639 7.9% Office Equipment Green Energy Santa Clara County of Santa Clara Saratoga 7.9% ‐13.3%‐4.4% ‐30.4%12,428,833 ‐6.3% Restaurants 1,112,269 ‐13.8% Restaurants 234,760 ‐0.8% Light Industry 6,605,585 11.0% Light Industry Electronic Equipment Office Equipment ‐3.6% ‐0.3% 7.6% 9.1% ‐41.8% ‐16.6%Food Markets Leasing 1.5% ‐10.1%22.0%232,850 Auto Parts/Repair Auto Sales ‐ New Business Services Bldg.Matls‐WhsleSunnyvale24.9%16.3% ‐13.7%7,332,989 Unlike the chart on page one which showed a ‘benchmark year’ through the first quarter of 2024, the chart above shows a comparison of one quarter only – first quarter of 2024 to first quarter of 2023. This chart is for local ‘brick and mortar’ businesses, and it excludes county pools and adjustments. ꢀwww.avenuinsights.com (800) 800-8181 Page 8 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 9  Packet Pg. 63 of 85  CityꢀofꢀPaloꢀAltoꢀ City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2023Q1 to 2024Q1 (Economic) California Avenue FOOD PRODUCTS GENERAL RETAIL ALL OTHER % CHANGE QoQ 2024Q1 QE 2023Q1 QE 90,606 24Q1 % OF TOTAL 23Q1 % OF TOTAL 2.0% 23.1% ‐4.8% 2.7% 92,380 21,954 38,511 60.4% 14.4% 25.2% 100.0% 60.9% 12.0% 27.2% 100.0% 17,827 40,465 148,897TOTAL152,844 El Camino Real and Midtown FOOD PRODUCTS GENERAL RETAIL ALL OTHER % CHANGE QoQ 2024Q1 QE 2023Q1 QE 24Q1 % OF TOTAL 23Q1 % OF TOTAL 5.2% ‐4.0% 49.0% 26.7% 156,412 148,644 37,191 195,113 380,948 32.4% 7.4% 39.0% 9.8%35,711 290,716 482,839 60.2% 100.0% 51.2% 100.0%TOTAL Greater Downtown FOOD PRODUCTS GENERAL RETAIL CONSTRUCTION BUSINESS TO BUSINESS MISCELLANEOUS TRANSPORTATION TOTAL % CHANGE QoQ 2024Q1 QE 2023Q1 QE 24Q1 % OF TOTAL 23Q1 % OF TOTAL 7.9% ‐5.6% 470.2% ‐26.3% ‐9.1% 516,354 478,353 247,632 8,003 45,854 7,561 61.5% 27.9% 5.4% 60.3% 31.2% 1.0% 233,851 45,632 33,808 6,872 4.0%5.8% 0.8%1.0% ‐42.3% 5.9% 3,092 839,608 5,362 792,765 0.4%0.7% 100.0%100.0% Stanford Shopping Center GENERAL RETAIL FOOD PRODUCTS ALL OTHER % CHANGE QoQ 2024Q1 QE 2023Q1 QE 24Q1 % OF TOTAL 23Q1 % OF TOTAL 14.5% ‐4.7% 31.1% 14.4% 1,294,515 145,028 214,421 1,130,136 152,251 163,515 78.3% 8.8% 78.2% 10.5% 11.3% 100.0% 13.0% 100.0%TOTAL 1,653,964 1,445,902 ꢀwww.avenuinsights.com (800) 800-8181 Page 9 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 10  Packet Pg. 64 of 85  CityꢀofꢀPaloꢀAltoꢀ City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2023Q1 to 2024Q1 (Economic) Cont. Town And Country Shopping Center FOOD PRODUCTS GENERAL RETAIL ALL OTHER % CHANGE QoQ 2024Q1 QE 2023Q1 QE 103,872 24Q1 % OF TOTAL 23Q1 % OF TOTAL 8.6% 9.7% ‐33.0% 8.1% 112,845 63,695 2,440 63.0% 35.6% 1.4% 62.7% 35.1% 2.2% 58,041 3,639 165,552TOTAL178,980 100.0%100.0% All Other Geos combined with Balance of Jurisdiction % CHANGE QoQ 2024Q1 QE 2023Q1 QE 24Q1 % OF TOTAL 23Q1 % OF TOTAL BUSINESS TO BUSINESS GENERAL RETAIL TRANSPORTATION FOOD PRODUCTS CONSTRUCTION MISCELLANEOUS TOTAL 0.0% 10.4% 34.3% 5.4% 152.8% 2.7% 2,248,812 1,708,428 1,418,608 1,107,512 62,911 2,248,217 1,547,799 1,056,270 1,050,429 24,884 34.1% 25.9% 21.5% 16.8% 1.0% 37.7% 25.9% 17.7% 17.6% 0.4% 43,968 6,590,238 42,803 5,970,403 0.7% 100.0% 0.7% 100.0%10.4% All Geo Areas Total Comparison 24Q1 & 23Q1 Balance of Jurisdiction Stanford Shopping Center Greater Downtown El Camino Real and Midtown Town And Country Shopping Center California Avenue % CHANGE QoQ 2024Q1 QE 2023Q1 QE 24Q1 % OF TOTAL 23Q1 % OF TOTAL 8.1% 5.9% 14.4% 26.7% 8.1% 3,282,003 3,036,339 792,765 1,445,902 380,948 165,552 148,897 49.8% 12.7% 25.1% 7.3% 50.9% 13.3% 24.2% 6.4% 839,608 1,653,964 482,839 178,980 2.7%2.8% 2.7%152,844 2.3%2.5% TOTAL 10.4%6,590,238 5,970,403 100.0%100.0% Palo Alto citywide QE 24Q1 & 23Q1 BUSINESS TO BUSINESS GENERAL RETAIL TRANSPORTATION FOOD PRODUCTS MISCELLANEOUS % CHANGE QoQ 2024Q1 QE 2023Q1 QE 24Q1 % OF TOTAL 23Q1 % OF TOTAL 5.5% 7.9% 34.2% 6.9% 33.0% 12.7% 11.9% 2,489,517 2,359,186 1,611,626 1,060,259 1,204,882 182,882 34.3% 24.0% 19.6% 17.8% 3.4% 36.4% 24.9% 16.4% 18.6% 2.8% 1,739,261 1,422,933 1,288,207 243,266 CONSTRUCTION TOTAL 70,132 62,205 6,481,040 1.0%1.0% 7,253,317 100.0%100.0% ꢀwww.avenuinsights.com (800) 800-8181 Page 10 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 11  Packet Pg. 65 of 85  CityꢀofꢀPaloꢀAltoꢀ City of Palo Alto Geo Area Pie Charts California Avenue2024Q1 SALES TAX AMOUNTS California Avenue2023Q1 SALES TAX AMOUNTS ALL OTHER, ‐4.8% CHANGE,$38,511 ,ALL OTHER, $40,465 ,27.2% TOTAL FOOD PRODUCTS,$90,606 ,25.2% TOTAL FOOD PRODUCTS, 2.0% CHANGE, $92,380 , 60.4% TOTAL 60.9% TOTAL GENERAL RETAIL,$17,827 , 12.0% TOTAL GENERAL RETAIL,23.1% CHANGE,$21,954 , 14.4% TOTAL El Camino Real and Midtown 2024Q1 SALES TAX AMOUNTS El Camino Real and Midtown 2023Q1 SALES TAX AMOUNTS ALL OTHER, $195,11351.2% TOTALALL OTHER,49.0% CHANGE,$290,716 , FOOD PRODUCTS,$148,644 , 39.0% TOTALFOOD PRODUCTS, 5.2% CHANGE, $156,412 ,32.4% TOTAL60.2% TOTAL GENERAL RETAIL, ‐4.0% CHANGE,$35,711 ,7.4% TOTAL GENERAL RETAIL, $37,191, 9.8% TOTAL ꢀwww.avenuinsights.com (800) 800-8181 Page 11 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 12  Packet Pg. 66 of 85  CityꢀofꢀPaloꢀAltoꢀ City of Palo Alto Geo Areas Pie Charts Greater Downtown 2024Q1 SALES TAX AMOUNTS Greater Downtown 2023Q1 SALES TAX AMOUNTS MISCELLANEOUS, ‐9.1% CHANGE, $6,872 ,0.8% TOTAL MISCELLANEOUS, $7,561 ,BUSINESS TO BUSINESS, ‐26.3% CHANGE, $33,808 , 4.0% TOTAL BUSINESS TO BUSINESS,$45,854 , 5.8% TOTAL 1.0% TOTALTRANSPORTATION, ‐42.3% CHANGE, $3,092 , 0.4% TOTAL TRANSPORTATION, $5,362 , 0.7% TOTAL CONSTRUCTION, 470.2% CHANGE, $45,632 , 5.4% TOTAL CONSTRUCTION, $8,003 ,1.0% TOTAL GENERAL RETAIL, ‐5.6% CHANGE, $233,851 , GENERAL RETAIL, $247,632 , 31.2% TOTAL 27.9% TOTAL FOOD PRODUCTS, 7.9% CHANGE, $516,354 , 61.5% TOTAL FOOD PRODUCTS,$478,353 , 60.3% TOTAL StanfordShopping Center 2024Q1 SALESTAX AMOUNTS StanfordShoppingCenter 2023Q1 SALESTAX AMOUNTS ALL OTHER, $163,515 , 11.3% TOTALALL OTHER, 31.1% CHANGE, $214,421 , 13.0% TOTAL GENERAL RETAIL,14.5% CHANGE, $1,294,515 ,78.3% TOTAL GENERAL RETAIL$1,130,136 ,78.2% TOTALFOOD PRODUCTS, ‐4.7% CHANGE, $145,028 ,FOOD PRODUCTS, $152,251 , 10.5% TOTAL8.8% TOTAL ꢀwww.avenuinsights.com (800) 800-8181 Page 12 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 13  Packet Pg. 67 of 85  CityꢀofꢀPaloꢀAltoꢀ City of Palo Alto Geo Area Pie Charts Town And Country Shopping Center 2024Q1 SALES TAX AMOUNTS Town And Country Shopping Center 2023Q1 SALES TAX AMOUNTS ALL OTHER, $3,639 , 2.2% TOTALALL OTHER, ‐33.0% CHANGE,$2,440 , 1.4% TOTAL GENERAL RETAIL,9.7% CHANGE, $63,695 , 35.6% TOTAL FOOD PRODUCTS, 8.6% CHANGE, $112,845 , 63.0% TOTAL GENERAL RETAIL,$58,041 , 35.1% TOTAL FOOD PRODUCTS,$103,872 , 62.7% TOTAL All Other Geos combined with Balance of Jurisdiction 2024Q1 All Other Geos combined with Balance of Jurisdiction 2023Q1 SALES TAX AMOUNTSSALES TAX AMOUNTS MISCELLANEOUS, 2.7% CHANGE, $43,968 , 0.7% TOTAL MISCELLANEOUS,CONSTRUCTION, 152.8% CHANGE, $62,911 , 1.0% TOTAL CONSTRUCTION,$42,803 , 0.7% TOTAL$24,884 , 0.4% TOTAL FOOD PRODUCTS, 5.4% CHANGE, $1,107,512 ,16.8% TOTAL BUSINESSTO BUSINESS,FOOD PRODUCTS, $1,050,429 ,17.6% TOTAL 0.0% CHANGE,$2,248,812 , 34.1% TOTAL BUSINESSTO BUSINESS,$2,248,217 , 37.7% TOTAL TRANSPORTATION, 34.3% CHANGE,$1,418,608, TRANSPORTATION, $1,056,270 , 17.7% TOTAL21.5% TOTAL GENERAL RETAIL, 10.4% CHANGE,$1,708,428,25.9% TOTAL GENERAL RETAIL, $1,547,799, 25.9% TOTAL ꢀwww.avenuinsights.com (800) 800-8181 Page 13 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 14  Packet Pg. 68 of 85  CityꢀofꢀPaloꢀAltoꢀ City of Palo Alto Geo Area & Citywide Pie Charts All Geo Area Totals 2024Q1 SALES TAX AMOUNTS All Geo Area Totals 2023Q1 SALES TAX AMOUNTS TownAnd CountryShoppingCenter,8.1% CHANGE, $178,980 , 2.7% TOTAL CaliforniaAvenue,$148,897 , 2.5% TOTALCaliforniaAvenue,2.7% CHANGE, $152,844 , 2.3% TOTAL TownAnd CountryShoppingCenter, $165,552 , 2.8% TOTAL El CaminoReal andMidtown, 26.7% CHANGE, $482,839 , 7.3% TOTAL Balance of Jurisdiction,$3,036,339 , 50.9% TOTALEl CaminoReal andMidtown, $380,948 , 6.4% TOTAL Balance of Jurisdiction, 8.1% CHANGE, $3,282,003 ,49.8% TOTAL GreaterDowntown,$1,445,902 , 24.2% TOTALGreaterDowntown, 14.4% CHANGE, $1,653,964 , 25.1% TOTAL StanfordShoppingCenter, 5.9% CHANGE, $839,608 ,12.7% TOTAL StanfordShoppingCenter, $792,765 , 13.3% TOTAL Palo Alto citywide 2024Q1 SALES TAX AMOUNTS Palo Alto citywide 2023Q1 SALES TAX AMOUNTSCONSTRUCTION, 12.7% CHANGE, $70,132 , 1.0% TOTAL MISCELLANEOUS, 33.0% CHANGE, $243,266 , 3.4% TOTAL MISCELLANEOUS, $182,882 ,CONSTRUCTION, $62,205 , 1.0% TOTAL2.8% TOTAL FOOD PRODUCTS, $1,204,882 BUSINESSTO BUSINESS,$2,359,186 , 36.4% TOTALFOOD PRODUCTS, 6.9% CHANGE, $1,288,207 ,17.8% TOTAL BUSINESS TO BUSINESS, 5.5% CHANGE, $2,489,517 , 34.3% TOTAL 18.6% TOTAL TRANSPORTATION, $1,060,259 , 16.4% TOTALTRANSPORTATION, 34.2% CHANGE, $1,422,933 , 19.6% TOTAL GENERAL RETAIL, $1,611,626 , 24.9% TOTAL GENERAL RETAIL, 7.9% CHANGE, $1,739,261 , 24.0% TOTAL ꢀwww.avenuinsights.com (800) 800-8181 Page 14 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 15  Packet Pg. 69 of 85  City of Palo Alto City of Palo Alto Geo Area Pie Charts Town And Country Shopping Center 2024Q1 SALES TAX AMOUNTS Town And Country Shopping Center 2023Q1 SALES TAX AMOUNTS ALL OTHER, $3,639 , 2.2% TOTALALL OTHER, -33.0% CHANGE, $2,440 , 1.4% TOTAL GENERAL RETAIL,9.7% CHANGE, $63,695 , 35.6% TOTAL FOOD PRODUCTS, 8.6% CHANGE, $112,845 ,63.0% TOTAL GENERAL RETAIL,$58,041 , 35.1% TOTAL FOOD PRODUCTS, $103,872 , 62.7% TOTAL All Other Geos combined with Balance of Jurisdiction 2024Q1 All Other Geos combined with Balance of Jurisdiction 2023Q1 SALES TAX AMOUNTSSALES TAX AMOUNTS MISCELLANEOUS, 2.7% CHANGE, $43,968 ,0.7% TOTAL MISCELLANEOUS,CONSTRUCTION, 152.8% CHANGE,$62,911 , 1.0% TOTAL CONSTRUCTION,$42,803 , 0.7% TOTAL$24,884 , 0.4% TOTAL FOOD PRODUCTS,5.4% CHANGE, $1,107,512 , 16.8% TOTAL BUSINESSTO BUSINESS,FOOD PRODUCTS,$1,050,429 ,17.6% TOTAL 0.0% CHANGE, $2,248,812 , 34.1% TOTAL BUSINESSTO BUSINESS, $2,248,217 , 37.7% TOTAL TRANSPORTATION,34.3% CHANGE,$1,418,608, TRANSPORTATION, $1,056,270 ,17.7% TOTAL21.5% TOTAL GENERAL RETAIL,10.4% CHANGE, $1,708,428, 25.9% TOTAL GENERAL RETAIL, $1,547,799,25.9% TOTAL www.avenuinsights.com (800) 800-8181 Page 13 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 16  Packet Pg. 70 of 85  City of Palo Alto City of Palo Alto Geo Area & Citywide Pie Charts All Geo Area Totals 2024Q1 SALES TAX AMOUNTS All Geo Area Totals 2023Q1 SALES TAX AMOUNTS Town And Country ShoppingCenter,8.1% CHANGE, $178,980 , 2.7% TOTAL CaliforniaAvenue,$148,897 , 2.5% TOTALCaliforniaAvenue, 2.7% CHANGE, $152,844 , 2.3% TOTAL Town And Country ShoppingCenter, $165,552 , 2.8% TOTAL El Camino Real and Midtown, 26.7% CHANGE, $482,839 ,7.3% TOTAL Balance of Jurisdiction,$3,036,339 , 50.9% TOTALEl Camino Real and Midtown, $380,948 , 6.4% TOTAL Balance of Jurisdiction,8.1% CHANGE,$3,282,003 ,49.8% TOTAL GreaterDowntown, $1,445,902 , 24.2% TOTALGreaterDowntown, 14.4% CHANGE, $1,653,964 ,25.1% TOTAL Stanford ShoppingCenter,5.9% CHANGE, $839,608 , 12.7% TOTAL Stanford ShoppingCenter, $792,765 , 13.3% TOTAL Palo Alto citywide 2024Q1 SALES TAX AMOUNTS Palo Alto citywide 2023Q1 SALES TAX AMOUNTSCONSTRUCTION, 12.7% CHANGE, $70,132 , 1.0% TOTAL MISCELLANEOUS, 33.0% CHANGE,$243,266 , 3.4% TOTAL MISCELLANEOUS, $182,882 ,CONSTRUCTION, $62,205 , 1.0% TOTAL2.8% TOTAL FOOD PRODUCTS, $1,204,882 BUSINESS TO BUSINESS,$2,359,186 , 36.4% TOTALFOOD PRODUCTS,6.9% CHANGE, $1,288,207 ,17.8% TOTAL BUSINESS TO BUSINESS, 5.5% CHANGE, $2,489,517 , 34.3% TOTAL 18.6% TOTAL TRANSPORTATION,$1,060,259 ,16.4% TOTALTRANSPORTATION, 34.2% CHANGE, $1,422,933 , 19.6% TOTAL GENERAL RETAIL,$1,611,626 ,24.9% TOTAL GENERAL RETAIL, 7.9% CHANGE, $1,739,261 , 24.0% TOTAL www.avenuinsights.com (800) 800-8181 Page 14 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 17  Packet Pg. 71 of 85  California Legislative Update June 4, 2024 May 24 was the house of origin deadline, requiring bills to pass out of their house of origin to remain active for this legislative session, which will end on August 31. Act of 2024. As amended 7/13/23. Authorizes a bond measure of $14 billion for the construction and modernization of Transitional Kindergarten through community colleges public education facilities on an unspecified 2024 statewide ballot. Status: Awaiting dispensation in the Senate Appropriations committee. 2,159 bills have been introduced in the legislature so far this year, 1520 in the Assembly and 639 in the Senate. Of those, 931 Assembly bills have passed off the Assembly floor, and in the Senate, 479 Senate bills have passed to the second chamber. Four Assembly bills and seven Senate bills have been signed into law by Governor Gavin Newsom so far this year.Cal Cities Position: Watch AB 305 (Villapudua) California Flood Protection Bond Act of 2024. As amended 4/25/23. Places a $4.5 billion flood protection and dam safety improvement bond before the voters on the November 5, 2024, General Election ballot. Status: Referred to the Senate committee on Natural Resources. Cal Cities Position: Watch The house of origin deadline was preceded by the appropriations suspense process, during which the Assembly and Senate appropriations committees took up their suspense files to decide which legislation would continue its journey through the legislative process this year and which would be held under submission. It appears that the tenuous state budget situation led to a higher number of bills being held in committee. Of the 1,009 total bills on the suspense files, 689 moved to the floors, while 320 were held (31.7%). Over the past decade, the average percentage of bills held on suspense is 25%. AB 408 (Wilson) Climate-resilient Farms, Sustainable Healthy Food Access, and Farmworker Protection Bond Act of 2024. As amended 8/14/23. Would enact the Climate-resilient Farms, Sustainable Healthy Food Access, and Farmworker Protection Bond Act of 2024, which, if approved by the voters, would authorize the issuance of bonds in the amount of $3.65 million pursuant to the State General Obligation Bond Law, to finance programs related to, among other things, agricultural lands, food and fiber infrastructure, climate resilience, agricultural professionals, including farmers, ranchers, and farmworkers, workforce development and training, air quality, tribes, disadvantaged communities, nutrition, food aid, meat processing facilities, and fishing facilities. Status: Awaiting dispensation in the Senate Appropriations committee. Committee hearings have begun for second house legislation, and budget committees are wrapping up. Upcoming deadlines include June 15 for the legislature to pass the budget, June 27 for legislative measures to qualify for the November ballot, and July 3 for policy committees to consider legislation. A summary of salient legislation is provided in this report. Of particular note, SB 1494 (Glazer) which would have prohibited cities from entering a sales tax rebate agreement with a retailer starting next year and voided all existing agreements on January 1, 2030, failed passage on the Senate floor. The floor fight ended a successful opposition effort that included a broad coalition of cities and local government associations. Cal Cities Position: Watch AB 1510 (Jones-Sawyer) Fighting Fentanyl Bond Act of 2024. As amended 7/13/23. Would enact the Fighting Fentanyl Bond Act of 2024, which, if adopted, would authorize the issuance of bonds in an unspecified amount, for purposes of financing, among other things, substance use treatment, harm reduction programs, supportive services for students, programs targeting drug trafficking, Bonds AB 247 (Muratsuchi) Education finance: school facilities: Transitional Kindergarten Through Community College Public Education Facilities Bond Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 18  Packet Pg. 72 of 85  substance use treatment programs in prisons and juvenile facilities, and recovery housing and transitional housing for previously incarcerated individuals. Status: Awaiting hearing in the Senate Appropriations committee. Safety Bond Act of 2024. As introduced 12/5/22. Authorizes a $15 billion bond measure for the construction and modernization of public preschools, K- 12, California Community College, University of California, and California State University facilities. Status: Awaiting dispensation in the Assembly Appropriations committee. Cal Cities Position: Watch AB 1567 (Garcia) Safe Drinking Water, Wildfire Prevention, Drought Preparation, Flood Protection, Extreme Heat Mitigation, Clean Energy, and Workforce Development Bond Act of 2024. As amended 5/26/23. Would enact the Safe Drinking Water, Wildfire Prevention, Drought Preparation, Flood Protection, Extreme Heat Mitigation, Clean Energy, and Workforce Development Bond Act of 2024, which, if approved by the voters, would authorize the issuance of bonds in the amount of $16 billion to finance projects for safe drinking water, wildfire prevention, drought preparation, flood protection, extreme heat mitigation, clean energy, and workforce development programs. Status: Awaiting hearing in the Senate Natural Resources and Water committee. Cal Cities Position: None SB 638 (Eggman) Climate Resiliency and Flood Protection Bond Act of 2024. As amended 6/28/23. Would enact the Climate Resiliency and Flood Protection Bond Act of 2024 which, if approved by the voters, would authorize the issuance of bonds in the amount of $6 billion for flood protection and climate resiliency projects. Status: Awaiting hearing in the Assembly Water, Parks, & Wildlife committee. Cal Cities Position: Support if amended SB 867 (Allen) Drought, Flood, and Water Resilience, Wildfire and Forest Resilience, Coastal Resilience, Extreme Heat Mitigation, Biodiversity and Nature- Based Climate Solutions, Climate Smart Agriculture, Park Creation and Outdoor Access, and Clean Energy Bond Act of 2024. As amended 6/22/23. Would enact the Drought, Flood, and Water Resilience, Wildfire and Forest Resilience, Coastal Resilience, Extreme Heat Mitigation, Biodiversity and Nature-Based Climate Solutions, Climate Smart Agriculture, Park Creation and Outdoor Access, and Clean Energy Bond Act of 2024, which, if approved by the voters, would authorize the issuance of bonds in the amount of $15.5 billion to finance projects for drought, flood, and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature-based climate solutions, climate smart agriculture, park creation and outdoor access, and clean energy programs. Cal Cities Position: Support if amended AB 1657 (Wicks) The Affordable Housing Bond Act of 2024. As amended 3/4/24. This bill would enact the Affordable Housing Bond Act of 2024, which, if adopted, would authorize the issuance of bonds in the amount of $10 billion pursuant to the State General Obligation Bond Law. Proceeds from the sale of these bonds would be used to finance programs to fund affordable rental housing and homeownership programs, including, among others, the Multifamily Housing Program, the CalHome Program, and the Joe Serna, Jr. Farmworker Housing Grant Program. Status: Awaiting dispensation in the Senate Appropriations committee. Cal Cities Position: Support Status: Awaiting hearing in the Assembly Natural Resources committee. Cal Cities Position: Support if amended AB 2208 (Zbur) California Ports Development and Offshore Wind Infrastructure Bond Act of 2024. As amended 3/21/24. Enacts the California Ports Development and Offshore Wind Infrastructure Bond Act of 2024, to authorize $1 billion in general obligation bonds for offshore wind energy. Authorizes the bond act for the November 5, 2024, general election. Status: Awaiting hearing in the Assembly Natural Resources committee. Cal Cities Position: Track Broadband AB 1588 (Wilson) Affordable Internet and Net Equality Act of 2024. As amended 1/22/24. Would, under the Affordable Internet and Net Equality Act of 2024, require the Department of Technology, in coordination with the Public Utilities Commission and the Department of General Services, to develop and establish the Net Equality Program. The bill would require the state and state agencies to only enter into a procurement SB 28 (Glazer) Education finance: school facilities: Public Preschool, K–12, and College Health and 2 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 19  Packet Pg. 73 of 85  contract with an internet service provider offering affordable home internet service, which costs no more than $40 per month and meets specified minimum speed requirements, to households participating in certain public assistance programs, or with an internet service provider participating in the federal Affordable Connectivity Program, or any other state or federal program that offers broadband affordability assistance for households that qualify for that program, and that offers to households that qualify for those programs internet service that costs no more than $40 per month and meets specified minimum speed requirements. broadband service, and enable Public Housing Account recipients offering new broadband plans within low- income communities to provide a free or low-cost broadband plan to those communities as a condition of obtaining the grant. Status: Awaiting assignment to a policy committee in the Assembly. Cal Cities Position: Track Corporation Tax AB 1973 (Lackey) Personal Income Tax Law: Corporation Tax Law: Bobcat Fire: exclusions. As amended 4/18/24. Would, for taxable years beginning on or after January 1, 2024, and before January 1, 2029, provide an exclusion from gross income for any qualified taxpayer, for amounts received in settlement for costs and losses associated with the 2020 Bobcat Fire in the County of Los Angeles. Status: Referred to the Senate Governmental Organization and Energy, Utilities, & Communications committees. Cal Cities Position: Watch AB 1826 (Holden) Digital Equity in Video Franchising Act of 2024. As amended 5/16/24. Makes various changes to the statutes governing state video franchises, known as the Digital Infrastructure and Video Competition Act of 2006, and recasts those statutes as the Digital Equity in Video Franchising Act of 2023. Generally, these changes can be classified as broadening the authority of the California Public Utilities Commission over the issuance and renewal of state video franchises and over the quality-of-service franchise holders providing service to unserved households. Status: Awaiting hearing in the Senate Revenue & Taxation committee. Cal Cities Position: None AB 2128 (Ta) Income and corporation taxes: credits: work opportunity credit. As amended 5/1/24. For taxable years beginning on or after January 1, 2025, and before January 1, 2030, would allow a tax credit in an amount equal to 40% of the qualified wages paid or incurred to a qualified employee employed during the taxable year. The bill would define a qualified employee as an individual that, among other things, has been convicted of a felony, and has a hiring date not more than one year after the date the individual was convicted or was released from prison. Status: Awaiting hearing in the Senate Energy, Utilities, & Communications committee. Cal Cities Position: Track AB 2708 (Patterson, Jim) Office of Broadband and Digital Literacy: reports. As introduced 2/14/24. Would require additional information to be included in the annual report from the Office of Broadband and Digital Literacy to the budget committees of the legislature, including the total cost to complete the statewide open-access middle- mile broadband network, the total available funding for the statewide open-access middle-mile broadband network, and the projected completion date for the statewide open- access middle-mile broadband network. Status: Dead - held on the Assembly Appropriations suspense file. Cal Cities Position: None AB 2294 (Schiavo) Personal Income Tax Law: Corporation Tax Law: New Employment Credit. As introduced 2/12/24. The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including, for taxable years beginning on or after January 1, 2014, and before January 1, 2026, a credit for hiring qualified full-time employees, within a designated census tract or economic development area in an amount equal to 35% of the qualified wages, defined in part as those wages that exceed 150% of minimum wage but do not exceed 350% of minimum wage, paid to those employees multiplied by the applicable percentage for that taxable year. This bill would eliminate Status: Awaiting hearing in the Senate Energy, Utilities, & Communications committee. Cal Cities Position: Support SB 1383 (Bradford) California Advanced Services Fund: Broadband Public Housing Account. As amended 4/9/24. Would expand eligibility for the California Advanced Services Fund Broadband Public Housing Account, authorize the use of Public Housing Account funds for devices that improve existing 3 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 20  Packet Pg. 74 of 85  the requirement that the new employment be located within a designated census tract or economic development area. The bill would expand the definition of qualified wages to include that amount of wages that exceeds 100% of minimum wage but does not exceed 350% of minimum wage. The bill would expand the definition of qualified employee to include an employee that is a member of a targeted group, as defined. 2021, oil spill that occurred off the coast of the County of Orange near the City of Huntington Beach. The bill would repeal the provisions on January 1, 2029. Status: Dead - held on the Senate Appropriations suspense file. Cal Cities Position: None Development FeesStatus: Awaiting hearing in the Assembly Revenue & Taxation committee.AB 1820 (Schiavo) Housing development projects: applications: fees and exactions. As amended 4/29/24. Would authorize a development proponent that submits a preliminary application for a housing development project to request a preliminary fee and exaction estimate and would require the local agency to provide the estimate within 30 business days of the submission of the preliminary application. Specifies that the preliminary fee and exaction estimate is for informational purposes only and does not affect the scope, amount, or time of payment of any fee or exaction. Cal Cities Position: None AB 3160 (Gabriel) Insurance, income, and corporation taxes: credits: low-income housing. As amended 5/20/24. Provides that an allocation of $500 million to the Low-Income Housing Tax Credit is not subject to an appropriation in the annual Budget Act for the 2025 through 2030 calendar years. Status: Awaiting assignment to a policy committee in the Senate. Cal Cities Position: Watch Status: Referred to the Senate Local Government and Housing committees. Cal Cities Position: Oppose unless amendedSB 370 (McGuire) Personal Income Tax Law: Corporation Tax Law: wildfires: exclusions. As amended 3/28/23. Would, for taxable years beginning on or after January 1, 2020, provide an exclusion from gross income for any qualified taxpayer, as defined, for amounts received in settlements associated with the 2019 Kincade Fire in the County of Sonoma. Status: Awaiting hearing in the Assembly Revenue & Taxation committee. Cal Cities Position: None AB 2430 (Alvarez) Planning and zoning: density bonuses: monitoring fees. As amended 4/18/24. Prohibits a local jurisdiction from charging local monitoring fees on 100% affordable housing developments using Density Bonus Law (DBL) to ensure the continued affordability required under DBL and any applicable local inclusionary housing ordinance. Status: Referred to the Senate Housing and Local Government committees.SB 542 (Dahle) Personal Income Tax Law: Corporation Tax Law: wildfires: exclusions. As amended 2/5/24. Would, for taxable years beginning on or after January 1, 2022, and before January 1, 2029, provide an exclusion from gross income for any qualified taxpayer, for amounts received in settlement for costs and losses associated with the 2021 Dixie Fire in the counties of Butte, Plumas, Lassen, Shasta, and Tehama, or the 2022 Mill Fire in the County of Siskiyou. Cal Cities Position: Track AB 2433 (Quirk-Silva) California Private Permitting Review and Inspection Act: fees: building permits. As amended 5/20/24. Requires a local agency to complete plan check services for a building permit within 30 business days of a request from an applicant or employ a private professional to perform plan checking services. Status: Referred to the Senate Local Government and Housing committees.Status: Awaiting hearing in the Assembly Appropriations committee. Cal Cities Position: None Cal Cities Position: Oppose unless amended AB 2663 (Grayson) Affordable housing fees: reports. As amended 5/2/24. This bill, commencing on January 1, 2026, would require a local agency that collects inclusionary housing in-lieu fees to annually post on its website information related to the amount of fees collected in the previous year and whether the affordable housing SB 1102 (Nguyen) Personal Income Tax Law: Corporation Tax Law: oil spill: exclusions. As amended 4/11/24. Would provide an exclusion from gross income for any qualified taxpayer for amounts received in settlements associated with the October 2, 4 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 21  Packet Pg. 75 of 85  fees are intended to be used for a project, if any. Beginning on January 1, 2026, this bill also requires a local agency that collects affordable housing fees to post on its website, every five years, information regarding the amount of fees collected in the past five years and the projects the fees were spent on. governing the Economic and Workforce Development Program, provisions on the duties and membership of the program’s advisory committee, the decision criteria for allocating program funds to colleges, and the definitions that apply to the program’s provisions. Status: 2-year bill, awaiting dispensation on the Senate Appropriations suspense file. Cal Cities Position: None Status: Referred to the Senate Housing and Local Government committees. Cal Cities Position: Watch AB 1569 (Garcia) Salton Sea geothermal resource area: Lithium Valley Office of Development. As amended 5/18/23. This bill would establish the Lithium Valley Office of Development in the Energy Commission, and require the office, in consultation with relevant state and local agencies, to coordinate activities related to funding, economic development, construction, manufacturing, technical development, and reclamation of lithium located in the Salton Sea geothermal resource area. AB 2729 (Patterson, Joe) Residential fees and charges. As amended 4/25/24. Prohibits a local agency from requiring payment of fees or charges on a residential development before the date of final inspection or the issuance of a certificate of occupancy, whichever occurs first, except under specified conditions. Status: Referred to the Senate Local Government and Housing committees. Cal Cities Position: Oppose Status: 2-year bill, awaiting dispensation on the Senate Appropriations suspense file. AB 3177 (Carrillo, Wendy) Mitigation Fee Act: land dedications: mitigating vehicular traffic impacts. As amended 4/30/24. Would require a housing development to be located within 1/2 mile of a transit priority area for purposes of a local agency setting the rate for a mitigating vehicular traffic impacts fee to reflect a lower rate of automobile trip generation. Status: Referred to the Senate Local Government and Housing committees. Cal Cities Position: Track Cal Cities Position: Watch AB 1819 (Waldron) Enhanced infrastructure financing districts: public capital facilities: wildfires. As amended 5/2/24. This bill would authorize an enhanced infrastructure financing district that is at least partially in high or very high fire hazard severity zones designated by the State Fire Marshal, to finance heavy equipment to be used for vegetation clearance and firebreaks, undergrounding of local publicly owned electric utilities, as defined, against wildfires, and equipment used for fire watch, prevention, and fighting.SB 937 (Wiener) Development projects: permits and other entitlements: fees and charges. As amended 4/8/24. Extends development entitlements for certain housing development projects by two years and places restrictions on the fees and charges a local agency may impose on these projects. Status: Awaiting assignment to a policy committee in the Assembly. Cal Cities Position: Oppose unless amended Status: Awaiting hearing in the Senate Local Government committee. Cal Cities Position: Pending AB 2922 (Garcia) Economic development: capital investment incentive programs. As amended 4/15/24. Reestablishes, until January 1, 2035, the authorization for the local agency Capital Investment Incentive Program, which expired January 1, 2024. Economic Development Status: Awaiting hearing in the Senate Local Government committee. Cal Cities Position: SupportAB 1370 (Ta) California Community Colleges Economic and Workforce Development Program. As amended 3/28/2023. Would revise and recast several provisions of the California Community Colleges Economic and Workforce Development Program. The bill would extend the operation of the program indefinitely and would repeal the Job Development Incentive Training Program. The bill would revise and recast the principles SB 517 (Gonzalez) Economic development: movement of freight. As amended 3/22/23. Would authorize the Governor’s Office of Business and Economic Development (GO-Biz) to serve as the coordinating entity to steer the growth, competitiveness, and sustainability for freight and the supply chain across 5 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 22  Packet Pg. 76 of 85  the state and to promote and assess the continued economic vitality, economic competitiveness, and sustainability of the freight sector. Would also authorize GO-Biz to provide freight and supply chain economic competitiveness information. Status: 2-year bill. Awaiting hearing in the Assembly Jobs, Economic Development, & the Economy committee. Cal Cities Position: Watch Online Sales SB 1144 (Skinner) Marketplaces: online marketplaces. As amended 5/16/24. Expands existing requirements for online marketplaces to collect certain information from high-volume third-party sellers on those platforms, and permits a district attorney, city attorney, or county counsel to enforce the requirements. Status: In the Assembly, awaiting assignment to a policy committee. Cal Cities Position: Support SB 720 (Stern) Aviation: airports: report: emissions: GO-Biz. As amended 7/10/23. Would require GO-Biz to create a stakeholder group to identify and pursue opportunities to attract and develop sustainable aviation fuel production and infrastructure in the state to help reach the goal of net-zero greenhouse gas emissions in California. Status: 2-year bill. Awaiting hearing in the Assembly Natural Resources committee. Cal Cities Position: None Property Tax AB 1093 (Patterson) Property taxation: manufactured homes: tax collection. As amended 7/13/23. This bill would revise the Manufactured Home Property Tax Law procedures for issuing a tax clearance certificate or a conditional tax clearance certificate and for the collection of unpaid, estimated taxes. With respect to the collection of taxes that are not yet payable, the bill would require those taxes to be computed by a certificate or statement prepared by the tax collector, upon request by an escrow officer, as provided, giving their estimate of those taxes or assessments for the current fiscal year and one succeeding fiscal year. SB 864 (Smallwood-Cuevas) Workforce development: workplace rights curriculum. As amended 7/3/23. Would require the California Workforce Development Board to assist the governor with partnering with the labor commissioner and other subject matter experts in developing a workplace rights curriculum to be provided to all individuals receiving individualized career services, supportive services, or training services through the California workforce system. The measure would require each local workforce development board to ensure the provision of workplace rights training consistent with that workplace rights curriculum. The bill would require the comprehensive 4-year local plan to include a description of how the local board plans to comply with this requirement. Status: 2-year bill. Awaiting dispensation on the Assembly Appropriations suspense file. Status: 2-year bill. Awaiting dispensation on the Senate Appropriations suspense file. Cal Cities Position: Watch AB 1868 (Friedman) Property taxation: assessments: affordable housing. As amended 4/18/24. Presumes, rebuttably, that an assessor shall not include the value of the deed of trust that ensures compliance with affordability restrictions on a property developed consistently with the Habitat for Humanity model. Status: Awaiting a hearing in the Senate Revenue & Taxation committee. Cal Cities Position: Watch Cal Cities Position: Watch SB 1140 (Caballero) Enhanced infrastructure financing district. As amended 3/21/24. Would authorize a city or county official to electronically submit a copy of a city or county’s resolution of intention to establish an infrastructure financing district to each affected taxing entity, rather than mailing a physical copy. Status: In the Assembly, awaiting assignment to a policy committee. AB 2353 (Ward) Property taxation: welfare exemption: delinquent payments: interest and penalties. As amended 4/24/24. Creates a process for a developer building affordable rental housing that qualifies for the property tax welfare exemption to withhold property taxes, without penalty, while the county tax assessor determines if the development qualifies for the welfare exemption. Status: Awaiting assignment to a policy committee in the Senate. Cal Cities Position: Watch Cal Cities Position: Watch 6 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 23  Packet Pg. 77 of 85  Cal Cities Position: Watch AB 2506 (Lowenthal) Property taxation: local exemption: possessory interests: publicly owned housing. As introduced 2/13/24. Authorizes a county board of supervisors to exempt from property taxation any possessory interest held by a tenant of publicly owned housing with a value so low that the total taxes and applicable subventions on the property would amount to less than the cost of assessing and collecting them. Status: Awaiting hearing in the Assembly Revenue & Taxation committee. AB 3277 (Committee on Local Government) Local agency formation commission: districts: property tax. As introduced 2/27/24. Would require a commission to determine the amount of property tax revenue to be exchanged by an affected local agency if the proposal includes the formation of a district and the applicant is seeking a share of the 1% ad valorem property taxes. Status: Awaiting hearing in the Senate Appropriations committee. Cal Cities Position: Watch Cal Cities Position: None AB 2564 (Boerner) Property tax postponement: Senior Citizens and Disabled Citizens Property Tax Postponement Fund. As introduced 2/14/24. Would require money to be transferred, on June 30, 2025, and on June 30 each year thereafter, from the state General Fund to the Senior Citizens and Disabled Citizens Property Tax Postponement Fund when the balance in the latter fund is less than $15 million. SB 726 (Archuleta) Property taxation: exemption: disabled veteran homeowners. As amended 4/13/23. Increases the disabled veterans’ exemption from property taxation to $863,790, and indexes the increased amount for inflation, for lien dates between January 1, 2024, and January 1, 2034. Status: Awaiting hearing in the Assembly Revenue & Taxation committee. Cal Cities Position: WatchStatus: Awaiting assignment to a policy committee in the Senate. Cal Cities Position: Support SB 871 (Archuleta) Property taxation: homeowners’, veterans’, and disabled veterans’ exemptions. As amended 9/1/23. Amends the homeowners’ exemption from property tax to allow a property that receives the homeowners’ exemption to also receive the disabled veterans’ or veterans’ exemptions; and takes effect only if voters approve SCA 6 (Archuleta). SCA 6 is awaiting referral to a policy committee in the Assembly. Status: Awaiting hearing in the Assembly Revenue & Taxation committee. AB 2897 (Connolly) Property tax: welfare exemption: community land trusts. As amended 4/1/24. Expands the definition of a community land trust (CLT) to include a wholly owned subsidiary that is solely directed and managed by the CLT, and to provide that a CLT may sell a dwelling or unit to a qualified owner if that dwelling or unit is subject to a 99-year affordability restriction. Status: Referred to the Senate Housing and Revenue & Taxation policy committees.Cal Cities Position: Pending Cal Cities Position: Watch SB 1072 (Padilla) Local government: Proposition 218: remedies. As amended 4/24/24. Would establish the Property Tax Assistance for Descendants of Enslaved Persons Program for purposes of making, upon AB 3134 (Chen) Property taxation: refunds. As amended 4/24/24. Would require the county auditor, if the cancellation of property taxes will result in a refund, to either process the refund to the payor of the tax or notify the payor in writing of the requirements for obtaining a refund. The bill would require that a claim for a refund under this provision be deemed timely filed if it is filed within 60 days of the notice. This bill would also authorize an order for refund of taxes or assessments to be paid to the assessee of a property, without a claim for refund filed, if certain conditions are met, including, among other requirements, that the amount of the refund is less than $10,000. appropriation by the legislature, moneys available to persons who meet specified criteria for purposes of providing financial assistance equal to the total amount of property taxes paid on a residential dwelling, as defined, or $4,000, whichever is less, and as subject to specified limitations. The bill would, for purposes of determining a person’s eligibility for monies under the program, require the person to provide an affidavit, under penalty of perjury, containing specified information, if the residential dwelling is owned by the person on property owned by a nonprofit incorporated association. By expanding the crime of perjury, the bill would impose a state-mandated Status: Awaiting hearing in the Senate Revenue & Taxation committee. 7 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 24  Packet Pg. 78 of 85  local program. The bill would require the Franchise Tax Board to develop and administer the program and to provide funds to eligible claimants. The bill would set forth procedures for administering the program. Status: Awaiting assignment to a policy committee in the Assembly. homeowners’ exemption. Would authorize the legislature to exempt property eligible for the veterans’ exemption in an amount up to the full value of the property. If the legislature increases the homeowners’ exemption, the measure would require that the legislature provide the same increase in the veterans’ exemption, except as limited by the full value of the property.Cal Cities Position: Watch Status: Awaiting referral to a policy committee in the Assembly. Cal Cities Position: Track SB 1164 (Newman) Property taxation: new construction exclusion: accessory dwelling units. As amended 5/16/24. Would enact a property tax new construction exclusion for the addition or construction of an accessory dwelling unit between January 1, 2025, and January 1, 2030. Revenue and Taxation AB 2813 (Aguiar-Curry) Government Investment Act. As amended 4/29/24. This bill, for purposes of ACA 1, would define “affordable housing” to include rental housing, ownership housing, interim housing, and affordable housing programs such as down payment assistance, first-time homebuyer programs, and owner- occupied affordable housing rehabilitation programs. The bill would require a local government to ensure that any project that is funded with ACA 1 bonded indebtedness or ACA 1 special taxes to have an estimated useful life of at least 15 years or 5 years if the funds are for specified public safety buildings, facilities, and equipment. Status: Awaiting assignment to a policy committee in the Assembly. Cal Cities Position: Oppose SB 1327 (Glazer) Income taxation: credits: local news media: data extraction transactions. As amended 5/16/24. Imposes a Data Extraction Mitigation Fee; enacts credits against the Personal Income and Corporation taxes for news media entities that pay wages for current or newly employed journalists or acquire freelance content; and directs fee revenue to specified purposes, including to reimburse foregone General Fund revenue resulting from the credits.Status: Ordered to the Assembly Inactive file at the request of the author. Cal Cities Position: OpposeStatus: Awaiting a vote by the full Senate. Cal Cities Position: Watch AB 3005 (Wallis) Motor Vehicle Fuel Tax Law: adjustment suspension. As introduced 2/16/24. Would authorize the governor to suspend an adjustment to the motor vehicle fuel tax, scheduled on or after July 1, 2025, upon determining that increasing the rate would impose an undue burden on low-income and middle-class families. Would require the governor to notify the legislature of an intent to suspend the rate adjustment on or before January 10 of that year and would require the Department of Finance to submit to the legislature a proposal by January 10 that would maintain the same level of funding for transportation purposes as would have been generated had the scheduled adjustment not been suspended. Status: Awaiting hearing in the Assembly Transportation committee. SCA 4 (Seyarto) Property taxation: principal residence and family home transfers. As amended 4/19/23. Would place a measure before voters that repeals Proposition 19’s limitation on the parent-child and grandparent-grandchild exclusion from change in ownership of a principal residence to apply only if the property continues as the primary residence of the transferee. SCA 4 also reinstates the parent-child, grandparent-grandchild exclusion for up to $1 million in aggregate value of all other types of property that is not the principal residence. Under the measure, both changes become effective on January 1, 2025, if approved by voters. Status: Failed passage in the Senate Governance & Finance committee. Cal Cities Position: Watch Cal Cities Position: Oppose ABX1 2 (Fong, Vince) Motor Vehicle Fuel Tax Law: suspension of tax. Would suspend the imposition of the tax on motor vehicle fuels for one year. The bill would require that all savings realized based on the suspension of the motor vehicle fuels tax by a person other than an end SCA 6 (Archuleta) Property taxation: veterans’ exemption. As amended 4/19/23. Would allow a dwelling that receives the veterans’ exemption or the disabled veteran’s exemption to also receive the 8 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 25  Packet Pg. 79 of 85  consumer, be passed on to the end consumer, and would make the violation of this requirement an unfair business practice, in violation of unfair competition laws. The bill would require a seller of motor vehicle fuels to provide a receipt to a purchaser that indicates the amount of tax that would have otherwise applied to the transaction. Status: Awaiting assignment to a policy committee in the Senate. AB 2061 (Wilson) Sales and Use Tax: exemptions: zero-emission public transportation ferries. As amended 5/1/24. This bill, beginning January 1, 2025, and until January 1, 2030, provides a partial sales and use tax exemption for a zero-emission public transportation ferry. Status: Awaiting hearing in the Senate Revenue & Taxation committee. Cal Cities Position: Support Cal Cities Position: None AB 2274 (Dixon) Taxation: sales and use taxes: exemption: tax holiday. As amended 3/21/24. Would, on and after January 1, 2025, exempt from sales and use taxes the gross receipts from the sale of, and the storage, use, or other consumption of, any tangible personal property purchased during the first weekend in August, beginning at 12:01 a.m. on Saturday and ending at 11:59 p.m. on Sunday. Sales and Use Taxes AB 52 (Grayson) Income tax credit: sales and use taxes paid: manufacturing equipment: research and development equipment. As amended 6/15/23. The Bradley-Burns Uniform Local Sales and Use Tax Law, authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and current laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Status: Awaiting hearing in the Assembly Revenue & Taxation committee. Cal Cities Position: Oppose Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Exemptions from state sales and use taxes are automatically incorporated into the local tax laws. This bill would allow, for a taxable year beginning on or after January 1, 2024, and before January 1, 2029, a credit against those taxes to a taxpayer in an amount equal to the amount of tax reimbursement paid during the taxable year for sales tax on gross receipts that would be exempt from taxation under the Sales and Use Tax Law pursuant to the sales and use tax exemption described above but for the provision that prohibits that exemption from applying with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, the Bradley-Burns Uniform Local Sales and Use Tax Law or the Transactions and Use Tax Law, sales and use taxes imposed pursuant to certain provisions of the Sales and Use Tax Law, and sales and use taxes imposed pursuant to certain provisions of the California Constitution. AB 2647 (Low) Property taxation: disabled veterans’ exemption: welfare exemption: housing for law enforcement and firefighters. As amended 4/10/24. Expands the disabled veterans’ property tax exemption and would provide an unmarried surviving spouse a property tax exemption in the same amount that they would have been entitled to if the veteran was alive and if certain conditions are met. Status: Awaiting hearing in the Assembly Revenue & Taxation committee. Cal Cities Position: Pending AB 2854 (Irwin) Bradley-Burns Uniform Local Sales and Use Tax Law. As amended 4/10/24. Requires a local agency to annually provide specified information to the California Department of Tax and Fee Administration (CDTFA) regarding the rebate of Bradley-Burns Uniform Local Sales and Use Tax Law revenues. Provides that, in any case where a local agency fails to provide the information above in a timely manner to the CDTFA or fails to post the information on its internet website, the department must notify the local agency that it has 30 days from receipt of the notice to provide or publish the required information. If a local agency fails to provide or publish the information within 30 days after receiving the notice, the department may impose a penalty in an amount equal to the greater of the following: Status: Held on the Senate Appropriations suspense file. Cal Cities Position: None AB 2006 (Mathis) Sales and Use Tax Law: exemption: over-the-counter medication. As introduced 1/31/24. This bill would, until January 1, 2030, provide an exemption for the state portion of the sales and use tax imposed on the sale of, and the storage, use, or other consumption in this state of, over-the-counter medication. Status: Held on the Assembly Revenue & Taxation committee suspense file.●20% of any rebated SUT revenues during the applicable fiscal year; or,Cal Cities Position: Watch 9 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 26  Packet Pg. 80 of 85  ●$1,000 for each day the local agency fails to provide or publish the required information after receipt of the 30-day notice from the CDTFA. centralized platform, or any other person from advertising, displaying, or offering a room rate that does not include all fees or charges required to stay at the short-term lodging, and requires that they include in the total price to be paid, all taxes and fees imposed by a government on the stay before the consumer reserves the stay. This bill would require a place of short-term lodging, an internet website, application, or other similar centralized platform, or any other person to also disclose any additional fees or charges that will be added to the total price to be paid, or other penalty that will be imposed, if the consumer fails to perform certain cleaning tasks at the end of the stay, and to explicitly describe the cleaning tasks in a written or electronic notice that is affirmatively acknowledged by the consumer before the consumer reserves the stay. The bill would make a violation of its provisions subject to the specified civil penalty and enforcement provisions described above. Status: Awaiting assignment to a policy committee in the Senate. Cal Cities Position: Support if amended AB 3259 (Wilson) Transactions and use taxes: County of Solano. As amended 5/7/24. Authorizes Solano County, or any city within Solano County, to impose a transaction and use tax for general or specific purposes that exceeds the 2% statutory limitation. Status: Awaiting assignment to a policy committee in the Senate. Cal Cities Position: Watch SB 243 (Seyarto) Sales and Use Tax Law: exemption: gun safety systems. As introduced 1/25/23. Would, until January 1, 2028, exempt from sales and use taxes the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, a gun safety system, as defined. This bill contains other related provisions and other existing laws. Status: Failed passage in the Senate Governance & Finance committee. Cal Cities Position: Watch Status: Awaiting hearing in the Senate Judiciary committee. Cal Cities Position: Watch SB 584 (Limón) Laborforce housing: Short-Term Rental Tax Law. As amended 5/18/23. This bill would enact the Laborforce Housing Financing Act of 2023, and define “laborforce housing” as housing that, among other things, is owned and managed by specified entities solely for the benefit of residents and households unable to afford market rent, and whose residents enjoy certain protections. The bill would establish the Laborforce Housing Fund in the State Treasury and would make moneys in the fund available to the department, upon appropriation by the legislature, for the creation of laborforce housing and other specified housing projects by public entities, local housing authorities, and mission- driven nonprofit housing providers, as provided. Status: Awaiting hearing in the Assembly Housing & Community Development committee. SB 1086 (Seyarto) Sales and Use Tax Law: motor vehicle fuel tax: sales price: gross receipts. As introduced 2/12/24. The Motor Vehicle Fuel Tax Law imposes a tax upon each gallon of motor vehicle fuel removed from a refinery or terminal rack in this state, entered into this state, or sold in this state, at a specified rate per gallon. Existing sales and use tax laws provide a partial exemption from the taxes imposed by those laws for motor vehicle fuel that is subject to the taxes imposed by the Motor Vehicle Fuel Tax Law. This bill, beginning January 1, 2025, would exclude from the terms “gross receipts” and “sales price” under the Sales and Use Tax Law the amount of any motor vehicle fuel tax imposed pursuant to the Motor Vehicle Fuel Tax Law. Status: Failed passage in the Senate Revenue & Taxation committee. Cal Cities Position: Oppose unless amended SB 683 (Glazer) Hotels and short-term rentals: advertised rates: mandatory fees. As amended 9/7/23. Would, beginning July 1, 2024, require a person or a website, application, or other similar centralized platform that advertises a hotel room rate or short-term rental rate before the public in this state, or from this state before the public in any state, to include in the advertised hotel room rate or short-term rental rate all mandatory fees, that will be charged in order for the consumer to stay in the hotel room or short-term rental and include in the total price to be paid, before the consumer reserves the stay, all taxes and fees imposed by a government on the stay. Cal Cities Position: Watch Short-Term Rentals AB 2202 (Rendon) Short-term rentals: disclosure: cleaning tasks. As amended 3/21/24. Current law, commencing July 1, 2024, prohibits a place of short-term lodging, an internet website, application, or other similar 10 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 27  Packet Pg. 81 of 85  Status: Inactive file. Cal Cities Position: Watch (CEQA) exempts from its requirements residential projects on infill sites and transit priority projects that meet certain requirements, including a requirement that the projects are located within 1/2 mile of a major transit stop. CEQA defines “major transit stop” to include, among other locations, the intersection of 2 or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods. This bill would revise the definition of “major transit stop” to increase the frequency of service interval to 20 minutes. Transit AB 1837 (Papan) San Francisco Bay area: public transit: Regional Network Management Council. As amended 3/21/24. Establishes in state law the Regional Network Management Council and directs the Metropolitan Transportation Commission to facilitate the creation of the council. Status: Awaiting hearing in the Senate Transportation committee. Cal Cities Position: Track Status: Referred to the Senate Local Government and Housing committees. Cal Cities Position: Track AB 2634 (McCarty) Sacramento Regional Transit District. As amended 5/30/24. Exempts the Sacramento Regional Transit (SACRT) District from a requirement that each transit operator that offers reduced fares to senior citizens must also offer reduced fares to disabled persons at the same rate established for senior citizens until January 1, 2027. This bill mandates that if SacRT offers reduced fares to senior citizens only, under this exemption, the district shall not increase fares for disabled persons or disabled veterans. This bill requires, under this exemption, that if SacRT offers reduced fares to senior citizens only, then SacRT is to submit a report to the legislature by January 1, 2026. AB 1853 (Villapudua) San Joaquin Regional Transit District: meetings: surplus money investments. As amended 3/11/24. Would authorize the San Joaquin Regional Transit District board to provide, by ordinance or resolution, that each board member receive $100 for each board meeting and committee meeting attended, not to exceed $500 in a calendar month. Status: Awaiting hearing in the Senate Transportation committee. Cal Cities Position: Track AB 1924 (Nguyen, Stephanie) Sacramento Regional Transit District. As amended 5/13/24. This bill allows the Sacramento Regional Transit District to expand its service area to any city within Sacramento County and any other portion of the unincorporated territory within the boundaries of Sacramento County where the county has declared a need for the district to operate. Status: Awaiting a full vote of the Senate. Cal Cities Position: None SB 904 (Dodd) Sonoma-Marin Area Rail Transit District. As amended 3/21/24. Current law authorizes the board of the Sonoma-Marin Area Rail Transit District to submit to the voters of the district a measure proposing a retail transaction and use tax ordinance. SB 904 would also authorize special district taxes to be imposed by a qualified voter initiative and require the board of supervisors of the counties of Sonoma and Marin to call a special election on a tax measure proposed by the district’s board of directors or a qualified voter initiative in their respective counties. Status: Awaiting assignment to a policy committee in the Assembly. Status: Awaiting a full vote of the Senate. Cal Cities Position: Track AB 2325 (Lee) San Francisco Bay Area Rapid Transit District: officers: designation and appointment. As amended 5/30/24. Would eliminate the treasurer and controller as specifically designated officers of the San Francisco Bay Area Rapid Transit District and as positions subject to appointment and removal by the board. The bill would also eliminate specified qualifications applicable to the controller.Cal Cities Position: None Status: Awaiting hearing in the Senate Transportation committee. Cal Cities Position: None SB 960 (Wiener) Transportation: planning: transit priority projects: multimodal. As amended 5/17/24. Directs Caltrans to develop a transit priority policy, requiring inclusion of bicycle, pedestrian, and transit priority facilities in the Transportation Asset Management Plan, the State Highway System Management Plan, and the AB 2553 (Friedman) Housing development: major transit stops: vehicular traffic impact fees. As amended 4/15/24. The California Environmental Quality Act 11 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 28  Packet Pg. 82 of 85  plain language performance report of the State Highway Operation and Protection Program (SHOPP). This bill requires any project in the SHOPP to include bicycle, pedestrian, and transit priority projects unless a specified exception applies. Status: Awaiting assignment to a policy committee in the Assembly. Cal Cities Position: Track Employment Discrimination SB 1264 (Grove) Employment discrimination: cannabis use. As amended 4/29/24. Existing law prohibits employers from discriminating against individuals in hiring, termination, or employment conditions based on their off-the-job cannabis use or the presence of nonpsychoactive cannabis metabolites in drug screenings. Certain exemptions exist, such as for positions requiring federal background checks or security clearances. SB 1264 extends exemptions to additional applicants and employees within law enforcement agencies, including those involved in civil enforcement, animal control, or coroner functions. SB 1031 (Wiener) San Francisco Bay area: local revenue measure: transportation improvements. As amended 5/20/24. Authorizes the Metropolitan Transportation Commission to propose new taxes, allocate new revenue and issue bonds for specified transportation projects, and requires the State Transportation Agency to consider transit agency consolidation within the San Francisco Bay area. Status: Awaiting assignment to a policy committee in the Assembly. Status: Awaiting assignment to a policy committee in the Assembly. Cal Cities Position: Track Cal Cities Position: Watch Enforcement SB 1417 (Allen) Transit districts: prohibition orders. As introduced 2/16/24. This bill would provide that the Santa Monica Department of Transportation is also a transit district for purposes of provisions regarding prohibition orders. Status: Awaiting hearing in the Assembly Transportation committee. AB 491 (Wallis) Local government: fines and penalties. As amended 9/13/23. Makes several changes to a local agency’s ability to collect administrative fines or penalties, including changes that apply to all administrative fines and penalties, as well as changes that are specific to violations of cannabis-related ordinances. Status: Awaiting hearing in the Senate Judiciary committee. Cal Cities Position: SupportCal Cities Position: None Cannabis AB 1616 (Lackey) California Cannabis Tax Fund: Board State and Community Corrections grants. This bill amends the Board of State and Community Corrections (BSCC) Prop 64 Public Health and Safety Grant Program to expand the eligibility criteria so that all of California's 482 cities and 58 counties may apply for grant funding. The bill further directs the BSCC to prioritize the allocation of BSCC grants to programs addressing unlawful retail and cultivation activities. Status: 2-year bill. Awaiting hearing in the Senate Public Safety committee. Direct to Consumer AB 1111 (Pellerin) Cannabis: small producer event sales license. As amended 5/22/23. This bill establishes a small producer event sales license for licensed small-scale cannabis cultivators in California, utilizing the existing state framework for cannabis events established under AB 2020. The bill limits license issuance to cultivators meeting specific cultivation size criteria and designated equity licensees. Licensees are required to sell only their own cultivated cannabis products and transport them to event venues through licensed distributors. Additionally, the bill mandates event organizers to provide a list of small producer event sales licensees to the Department of Cannabis Control (DCC) for temporary event applications and grants DCC authority to take disciplinary action for violations. Sponsored by the Origins Council. Cal Cities Position: Support SB 820 (Alvarado-Gil) Cannabis: enforcement: seizure of property. As amended 5/1/23. Sponsored by the Rural County Representatives of California, this bill empowers the Department of Cannabis Control or local jurisdictions, with an inspection warrant, to seize specified property used in unlicensed commercial cannabis activities, along with vehicles valued over $5,000 used to conceal or transport cannabis products for those engaging in suchStatus: Held on the Senate Appropriations suspense file. Cal Cities Position: Watch 12 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 29  Packet Pg. 83 of 85  conduct. Specified property includes various equipment, materials, and currency exceeding $40,000. The bill excludes limited unlicensed commercial cannabis activities involving fewer than 1,000 living cannabis plants and real property. It establishes notice requirements and forfeiture proceedings, with seized property sold at public auction and proceeds split between the local jurisdiction and the Cannabis Control Fund. Proceeds allocated to the state are designated for use exclusively under the California Cannabis Equity Act, subject to legislative appropriations. Status: Awaiting hearing in the Assembly Business and Professions committee. SB 1109 (Bradford) Cannabis licensure. As amended 5/16/24. Requires the Department of Cannabis Control to collect demographic data about a person applying for a state license. Status: Awaiting assignment to a policy committee in the Assembly. Cal Cities Position: Pending Onsite Consumption AB 1775 (Haney) Cannabis: local control: cannabis consumption. As amended 4/25/24. This bill specifies that a local jurisdiction may allow a licensed retailer or microbusiness to prepare or sell pre-packaged non- cannabis-infused, nonalcoholic food or beverage products and to allow, and to sell tickets for, live musical or other performances on the premises by a licensed retailer or microbusiness in an area where the consumption of cannabis is allowed. Cal Cities Position: Support Industrial Hemp AB 2223 (Aguiar-Curry) Cannabis: industrial hemp. As amended 5/16/24. Allows for cannabis licensees to manufacture, distribute, or sell products that contain industrial hemp and places additional restrictions on industrial hemp products containing tetrahydrocannabinol (THC) or comparable cannabinoids. Status: Awaiting hearing in the Senate Business Professions and Economic Development committee. Status: Referred to the Senate Business Professions and Economic Development and Health committees. Cal Cities Position: Pending Cal Cities Position: Pending SB 285 (Allen) Cannabis: retail preparation, sale, and consumption of non-cannabis food and beverage products. As amended 4/11/23. Permits the preparation or sale of non-cannabis food or beverage products in compliance with all applicable provisions of the retail food code by a licensed cannabis retailer or microbusiness in the area where the consumption of cannabis is allowed. Specifies that the activities above must be authorized by a local jurisdiction, and only if access to the area where cannabis consumption is allowed is restricted to persons 21 years of age or older, if cannabis consumption is not visible from any public place or nonage-restricted area, and if the sale or consumption of alcohol or tobacco is not allowed on the premises. Authorizes a local jurisdiction to allow for the sale of prepackaged, non-cannabis-infused, nonalcoholic food and beverages by a licensed retailer. Status: Awaiting hearing in the Assembly Governmental Organization committee. Licensing Reform/Simplification SB 508 (Laird) Cannabis: licenses: California Environmental Quality Act. As amended 8/4/23. Establishes conditions under which the Department of Cannabis Control is not required to serve as a responsible agency under the California Environmental Quality Act (CEQA). Status: Awaiting dispensation in the Assembly Appropriations committee. Cal Cities Position: Support SB 1064 (Laird) Cannabis. As amended 5/16/24. Co- sponsored by the Rural County Representatives of California and the California Cannabis Industry Association, this bill revises the current licensing framework for retail, distribution, processing and manufacturing of cannabis or cannabis products for commercial cannabis activity by creating a uniform operator license, a revised premises license, as specified, and transforming a cultivation or laboratory license into a unified license by January 1, 2028. Cal Cities Position: Watch Cannabis Taxation AB 2555 (Quirk-Silva) Sales and use tax: exemption: medicinal cannabis: donations. As amended 4/8/24. This bill ensures continued access to medicinal cannabis donations for low-income patients by extending Status: Awaiting assignment to a policy committee in the Assembly. Cal Cities Position: Support indefinitely the sales and use tax exemption for medicinal 13 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 30  Packet Pg. 84 of 85  cannabis or medicinal cannabis products that are donated by cannabis licensees, also known as the Dennis Peron and Brownie Mary Act. The current exemption is set to expire at the end of 2024 and this bill would extend the sunset to Jan. 1, 2030. Status: Awaiting assignment to a policy committee in the Senate. Cal Cities Position: Watch SB 1059 (Bradford) Cannabis tax: cannabis retailers. As amended 4/24/24. Clarifies that the state’s 15% excise tax is calculated based on gross receipts of cannabis products and does not capture any tax or fee imposed by a local jurisdiction. In some jurisdictions, including the City of Los Angeles, local cannabis taxes or fees are being calculated after the state excise tax is applied. Status: Awaiting assignment to a committee in the Assembly. Cal Cities Position: Pending Testing Integrity AB 1610 (Jones-Sawyer) Cannabis: Department of Cannabis Control. As amended 7/5/23. This bill aims to tackle the issue of illegal over-reporting of potency for price markups in the cannabis industry. The bill mandates the Department of Cannabis Control (DCC) to maintain a record of recall orders on its website, including details like date, location, licensee name, and license number. It also requires the DCC to establish a blind proficiency test method for testing laboratories to ensure consistent results, conduct biennial in-person audits of testing labs, set guidelines for audit procedures, and establish quality assurance standards for cannabis products available for retail sale. Status: Awaiting hearing in the Senate Business, Professions, and Economic Development Committee. Cal Cities Position: Watch 14 Item 5 Attachment A - 2024 Q1 Sales Tax Digest Summary with County Pool and Legislative Update        Item 5: Staff Report Pg. 31  Packet Pg. 85 of 85