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HomeMy WebLinkAbout2024-06-13 Historic Resources Board Agenda PacketHISTORIC RESOURCES BOARD Regular Meeting Thursday, June 13, 2024 Council Chambers & Hybrid 8:30 AM Historic Resources Board meetings will be held as “hybrid” meetings with the option to attend by teleconference/video conference or in person. To maximize public safety while still maintaining transparency and public access, members of the public can choose to participate from home or attend in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. Masks are strongly encouraged if attending in person. T h e   m e e t i n g   w i l l   b e   b r o a d c a s t   o n   C a b l e   T V   C h a n n e l   2 6 ,   l i v e   o n YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org. Commissioner names, biographies, and archived agendas are available at https://bitly.com/paloaltoHRB.  VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/96800197512) Meeting ID: 968 0019 7512    Phone: 1(669)900‐6833 PUBLIC COMMENTS Public comments will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. All requests to speak will be taken until 5 minutes after the staff’s presentation. Written public comments can be submitted in advance to hrb@cityofpaloalto.org and will be provided to the Board and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your subject line. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson's presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non‐speaking members agree not to speak individually. The Chair may limit Public Comments to thirty (30) minutes for all combined speakers. The Chair may reduce the allowed time to speak on Study Sessions and Actions Items to two (2) minutes or less to accommodate a larger number of speakers. PowerPoints, videos, or other media to be presented during public comment are accepted only by email to hrb@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. CALL TO ORDER/ ROLL CALL PUBLIC COMMENT  Members of the public may speak to any item NOT on the agenda. Three (3) minutes per speaker. AGENDA CHANGES, ADDITIONS AND DELETIONS The Chair or Commission majority may modify the agenda order to improve meeting management. CITY OFFICIAL REPORTS 1.Historic Resources Board Schedule of Meetings and Assignments ACTION ITEMS Public Comment is Permitted. Applicants/Appellant Teams: Ten (10) minutes, plus ten (10) minutes rebuttal. All others: Three (3) minutes per speaker. 2.Review and Approve Changes to the Historic Resources Board Bylaws for Consistency with Amendments to Palo Alto Municipal Code Chapter 2.27, Historic Resources Board. 3.Recommendation on Tailored Mills Act Program APPROVAL OF MINUTES Public Comment is Permitted. Three (3) minutes per speaker. 4.Approval of Historic Resources Board Draft Minutes of April 11, 2024 BOARD MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS OR FUTURE MEETINGS AND AGENDAS Members of the public may not speak to the item(s). ADJOURNMENT 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 hrb@cityofpaloalto.org. 2. Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Board, 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. 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. 3. Spoken public comments using a smart phone will be accepted  through the teleconference meeting. To address the Board, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions above. 4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Board. 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: 968 0019 7512   Phone:1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.  1 Regular Meeting June 13, 2024 HISTORIC RESOURCES BOARDRegular MeetingThursday, June 13, 2024Council Chambers & Hybrid8:30 AMHistoric Resources Board meetings will be held as “hybrid” meetings with the option to attendby teleconference/video conference or in person. To maximize public safety while stillmaintaining transparency and public access, members of the public can choose to participatefrom home or attend in person. Information on how the public may observe and participate in themeeting is located at the end of the agenda. Masks are strongly encouraged if attending inperson. T h e   m e e t i n g   w i l l   b e   b r o a d c a s t   o n   C a b l e   T V   C h a n n e l   2 6 ,   l i v e   o nYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org. Commissioner names, biographies, and archived agendas areavailable at https://bitly.com/paloaltoHRB. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/96800197512)Meeting ID: 968 0019 7512    Phone: 1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tohrb@cityofpaloalto.org and will be provided to the Board and available for inspection on theCity’s website. Please clearly indicate which agenda item you are referencing in your subjectline.Spokespersons that are representing a group of five or more people who are identified aspresent at the meeting at the time of the spokesperson's presentation will be allowed up tofifteen (15) minutes at the discretion of the Chair, provided that the non‐speaking membersagree not to speak individually. The Chair may limit Public Comments to thirty (30) minutes forall combined speakers. The Chair may reduce the allowed time to speak on Study Sessions andActions Items to two (2) minutes or less to accommodate a larger number of speakers.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to hrb@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 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. CALL TO ORDER/ ROLL CALL PUBLIC COMMENT  Members of the public may speak to any item NOT on the agenda. Three (3) minutes per speaker. AGENDA CHANGES, ADDITIONS AND DELETIONS The Chair or Commission majority may modify the agenda order to improve meeting management. CITY OFFICIAL REPORTS 1.Historic Resources Board Schedule of Meetings and Assignments ACTION ITEMS Public Comment is Permitted. Applicants/Appellant Teams: Ten (10) minutes, plus ten (10) minutes rebuttal. All others: Three (3) minutes per speaker. 2.Review and Approve Changes to the Historic Resources Board Bylaws for Consistency with Amendments to Palo Alto Municipal Code Chapter 2.27, Historic Resources Board. 3.Recommendation on Tailored Mills Act Program APPROVAL OF MINUTES Public Comment is Permitted. Three (3) minutes per speaker. 4.Approval of Historic Resources Board Draft Minutes of April 11, 2024 BOARD MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS OR FUTURE MEETINGS AND AGENDAS Members of the public may not speak to the item(s). ADJOURNMENT 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 hrb@cityofpaloalto.org. 2. Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Board, 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. 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. 3. Spoken public comments using a smart phone will be accepted  through the teleconference meeting. To address the Board, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions above. 4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Board. 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: 968 0019 7512   Phone:1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.  2 Regular Meeting June 13, 2024 HISTORIC RESOURCES BOARDRegular MeetingThursday, June 13, 2024Council Chambers & Hybrid8:30 AMHistoric Resources Board meetings will be held as “hybrid” meetings with the option to attendby teleconference/video conference or in person. To maximize public safety while stillmaintaining transparency and public access, members of the public can choose to participatefrom home or attend in person. Information on how the public may observe and participate in themeeting is located at the end of the agenda. Masks are strongly encouraged if attending inperson. T h e   m e e t i n g   w i l l   b e   b r o a d c a s t   o n   C a b l e   T V   C h a n n e l   2 6 ,   l i v e   o nYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org. Commissioner names, biographies, and archived agendas areavailable at https://bitly.com/paloaltoHRB. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/96800197512)Meeting ID: 968 0019 7512    Phone: 1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tohrb@cityofpaloalto.org and will be provided to the Board and available for inspection on theCity’s website. Please clearly indicate which agenda item you are referencing in your subjectline.Spokespersons that are representing a group of five or more people who are identified aspresent at the meeting at the time of the spokesperson's presentation will be allowed up tofifteen (15) minutes at the discretion of the Chair, provided that the non‐speaking membersagree not to speak individually. The Chair may limit Public Comments to thirty (30) minutes forall combined speakers. The Chair may reduce the allowed time to speak on Study Sessions andActions Items to two (2) minutes or less to accommodate a larger number of speakers.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to hrb@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.CALL TO ORDER/ ROLL CALLPUBLIC COMMENT Members of the public may speak to any item NOT on the agenda. Three (3) minutes per speaker.AGENDA CHANGES, ADDITIONS AND DELETIONSThe Chair or Commission majority may modify the agenda order to improve meeting management.CITY OFFICIAL REPORTS1.Historic Resources Board Schedule of Meetings and AssignmentsACTION ITEMSPublic Comment is Permitted. Applicants/Appellant Teams: Ten (10) minutes, plus ten (10) minutes rebuttal. All others: Three(3) minutes per speaker.2.Review and Approve Changes to the Historic Resources Board Bylaws for Consistencywith Amendments to Palo Alto Municipal Code Chapter 2.27, Historic Resources Board.3.Recommendation on Tailored Mills Act ProgramAPPROVAL OF MINUTESPublic Comment is Permitted. Three (3) minutes per speaker.4.Approval of Historic Resources Board Draft Minutes of April 11, 2024BOARD MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS OR FUTURE MEETINGS ANDAGENDASMembers of the public may not speak to the item(s). ADJOURNMENT 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 hrb@cityofpaloalto.org. 2. Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Board, 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. 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. 3. Spoken public comments using a smart phone will be accepted  through the teleconference meeting. To address the Board, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions above. 4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Board. 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: 968 0019 7512   Phone:1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.  3 Regular Meeting June 13, 2024 Item No. 1. Page 1 of 2 Historic Resources Board Staff Report From: Planning and Development Services Director Lead Department: Planning and Development Services Meeting Date: June 13, 2024 Report #: 2405-3091 TITLE Historic Resources Board Schedule of Meetings and Assignments RECOMMENDATION Staff recommends the Historic Resources Board (HRB) review and comment as appropriate. BACKGROUND Attached is the HRB meeting schedule and attendance record for the calendar year. This is provided for informational purposes. Any HRB member who anticipates being absent from a future meeting is requested to notify staff well in advance. No action is required for this item. The City Council (on a 6-1 vote at second reading June 3, 2024) approved revisions to PAMC Chapter 2.27 to reduce regular HRB meetings to once per month and reduce the HRB to five members. The ordinance will be in effect as of July 4, 2024. Therefore, the July 11 HRB meeting will only require a quorum of the three HRB members whose terms did not expire in April 2024. However, two HRB members can continue to serve until Council appoints their replacements. Staff requests their attendance at the July and August meetings, to enable a five member HRB. The City Clerk received five applications, including one from a sitting HRB member, and anticipates scheduling interviews of all candidates August 5, 2024 (after the summer break). Council may schedule the HRB appointments on the Council August 12th or 19th agendas, though this is not assured. On the attached meeting schedule, the dates for all upcoming meetings on second Thursdays of each month are shown, and the dates of the fourth Thursdays are indicated as deleted. The publication of these regular HRB dates does not limit the ability of the HRB to set special meetings as needed, such as on the fourth Thursdays or quarterly evening outreach meetings if desired. Special HRB meetings require agenda publication at least 72 hours in advance. The HRB may wish to consider either exchanging the August 8 regular meeting date for a special Item 1 Staff Report     Packet Pg. 4     Item No. 1. Page 2 of 2 meeting date of August 22, or simply adding August 22 as a special meeting to welcome new board members if Council schedules the appointments before that date. ATTACHMENTS Attachment A: 2024 Meeting Schedule & Assignments AUTHOR/TITLE: Amy French, Chief Planning Official Item 1 Staff Report     Packet Pg. 5     Historic Resources Board 2024 Meeting Schedule & Assignments 2024 Meeting Schedule Meeting Dates Time Location Status Planned Absences 1/11/2024 8:30 AM Hybrid Regular 1/25/2024 8:30 AM Hybrid Regular 2/8/2024 8:30 AM Hybrid Canceled 2/22/2024 8:30 AM Hybrid Canceled 2/23/2024 6:00 PM Hybrid Community Meeting 3/14/2024 8:30 AM Hybrid Canceled 3/28/2024 8:30 AM Hybrid Regular 4/11/2024 8:30 AM Hybrid Regular Wimmer 4/25/2024 8:30 AM Hybrid Canceled 5/9/2024 8:30 AM Hybrid Regular Pease 5/23/2024 8:30 AM Hybrid Canceled 6/13/2024 8:30 AM Hybrid Regular 6/27/2024 8:30 AM Hybrid Canceled 7/11/2024 8:30 AM Hybrid Regular 7/25/2024 8:30 AM Hybrid Canceled 8/8/2024 8:30 AM Hybrid Regular 8/22/2024 8:30 AM Hybrid Canceled 9/12/2024 8:30 AM Hybrid Regular 9/26/2024 8:30 AM Hybrid Canceled 10/10/2024 8:30 AM Hybrid Regular 10/24/2024 8:30 AM Hybrid Canceled 11/14/2024 8:30 AM Hybrid Regular 11/28/2024 8:30 AM Hybrid Canceled 12/12/2024 8:30 AM Hybrid Regular 12/26/2024 8:30 AM Hybrid Canceled 2024 Subcommittee Assignments January February March April May June July August September October November December Item 1 Attachment A - 2024 HRB Meeting Schedule & Assignments     Packet Pg. 6     Item No. 2. Page 1 of 3 Historic Resources Board Staff Report From: Planning and Development Services Director Lead Department: Planning and Development Services Meeting Date: June 13, 2024 Report #: 2404-2957 TITLE Review and Approve Changes to the Historic Resources Board Bylaws for Consistency with Amendments to Palo Alto Municipal Code Chapter 2.27, Historic Resources Board. RECOMMENDATION Staff recommends that the Historic Resources Board adopt the proposed revisions to its Bylaws for consistency with amendments to Palo Alto Municipal Code Chapter 2.27, Historic Resources Board. BACKGROUND The Historic Resources Board (HRB) has three main guiding documents: PAMC Chapter 2.27, the HRB Bylaws, and the HRB’s Procedural Rules. Additionally, the City Boards, Commissions, and Committees (BCC) Handbook is a reference guide that also applies to advisory and regulatory bodies such as the HRB. On May 13, 2024, the City Council approved the first reading of an Ordinance modifying Palo Alto Municipal Code (PAMC) Chapter 2.27, Sections 2.27.010 and 2.27.030 (Attachment B)1. On June 3, 2024, the City Council approved the second reading of said Ordinance2. The report is to provide revisions to the HRB Bylaws (Attachment A) to better align with the amendments to PAMC Chapter 2.27. The City Clerk’s office would initiate changes to the BCC Handbook for consistency with the amendments to PAMC Chapter 2.27 at a later date. 1 City Council Meeting May 13, 2024, Agenda Item 9: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=14261 2 City Council Meeting June 3, 2024, Agenda Item 15: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=14299 Item 2 Staff Report     Packet Pg. 7     Item No. 2. Page 2 of 3 The City Clerk's office has often needed to pursue multiple recruitments for HRB positions and the HRB recently experienced members who had served multiple terms who then ‘termed out’. There are currently three HRB members whose terms did not end March 31, 2024. Four members are currently serving past their terms that ended March 31, 2024. Three of the four are now serving into the six-month timeframe prescribed in the City’s rules, until Council appoints their successors. The fourth member does not plan to continue their term. In response, staff prepared an Ordinance modifying PAMC Chapter 2.27, Sections 2.27.010 and 2.27.030 to minimally meet Certified Local Government (CLG) requirements. Said Ordinance was brought to the attention of the HRB at the May 9, 2024, meeting. On May 13, 2024, the City Council approved the first reading of the Ordinance. Council’s second reading of the ordinance is scheduled for June 3, 20243. ANALYSIS The HRB Bylaws were last updated in March of 2023. Staff recommends revising Sections 5.0 and 6.0 of the HRB Bylaws for consistency with the amendments to PAMC Sections 2.27.010 and 2.27.030, as detailed below: 1. Board Composition Amendments to PAMC Section 2.27.010 reduced the required HRB board members from seven to five, reduced the required number of professionals from three to two, removed the requirement for a member to own or occupy a Category 1 or 2 resource or property within a historic district, and expanded the professional fields consistent with CLG requirements for Historic Resources Boards. Staff revised Section 5.0 of the HRB Bylaws to align with these amendments (Attachment A). 2. Meeting Frequency Amendments to PAMC Section 2.27.030 (a) and (b) reduced regular meetings to once per month and reduced the size of the local quorum to three members. Staff revised Section 5.0 and Section 6.0 of the HRB Bylaws to align with these amendments (Attachment A). Consistent with CLG guidelines, the ordinance includes that there would be no fewer than four HRB meetings per year. ATTACHMENTS Attachment A: HRB Bylaws with proposed changes Attachment B: Ordinance modifying PAMC Chapter 2.27 Sections 2.27.010 and 2.27 3 Link to June 3, 2024 Council Agenda – see Item 15 on consent calendar https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=14299 Item 2 Staff Report     Packet Pg. 8     Item No. 2. Page 3 of 3 AUTHOR/TITLE: Amy French, Chief Planning Official Item 2 Staff Report     Packet Pg. 9     DRAFT 011415 cs 0131565 1 Rev. June 13, 2024 4 7 1 1 RULES AND REGULATIONS AND BY-LAWS OF THE PALO ALTO HISTORIC RESOURCES BOARD ARTICLE I Name Section 1.0 The name of this board shall be the PALO ALTO HISTORIC RESOURCES BOARD (HRB) ARTICLE II Section 2.0 This board shall perform any duties imposed upon it by Ordinances of the City of Palo Alto and by applicable State and Federal law, or as requested by the City Council of the City of Palo Alto. ARTICLE III Officers Section 3.0 The officers of the Board Shall consist of a Chairperson, a Vice Chairperson, and a Secretary who shall be a non-voting member. Section 3.1 The offices of Chairperson and Vice Chairperson shall be elected from among the appointed members of the Board, and the person so elected shall serve for a term of one year or until a successor is elected. Elections shall be held at the first meeting in April that has full member attendance each year or following the first meeting with newly appointed Board members in attendance, when this occurs after the first April meeting. Section 3.2 The Director of Planning and Community Environment of the City of Palo Alto or his/her designated representative shall be the Secretary of the Board. Section 3.3 The duties of the offices of the HRB shall be as follows: Section 3.31 It shall be the duty of the Chairperson to preside over all meeting of the Board, to appoint committees and to serve as an ex-officio member of the committees so appointed, to call special meetings of the Board and to designate the time and place of such meeting, to set the date and time for the public hearing held by the Board, to sign documents and correspondence in the name of the Board, and to represent the Board before the City Council, its commissions and committees, and such other groups and organizations as may be appropriate. The Chairperson may designate the Vice Chairperson, or in the Vice Chairperson’s absence, another member of the Board to act in his/her stead. Section 3.32 It shall be the duty of the Vice Chairperson to assist the Chairperson and to act in his/her stead during his/her absence. Item 2 Attachment A HRB Bylaws with proposed changes     Packet Pg. 10     DRAFT 011415 cs 0131565 2 Rev. June 13, 2024 4 7 1 1 Section 3.33 It shall be the duty of the Secretary to keep a record of all meeting of the Board, to accept in the name of the Board documents and correspondence addressed to it, to present such correspondence to the Board, and perform other staff functions as deemed necessary by the Board. The Secretary will determine the agenda for all public meeting of the Board, based upon an assessment of the applications made to the City requiring historic architectural review, and based also upon the desirability of hearing such other matters as may be deemed, by the Chairperson or by the Secretary, to be of concern to the Board. ARTICLE IV Committees Section 4.0 The Chairperson shall appoint special committees as they be desired or required. ARCTICLE V Quorums and Voting Section 5.0 Four Three members of the Board shall constitute a quorum for the purposes of conducting business. Section 5.1 All actions taken must be by affirmative vote of majority of those Board members present, except to adjourn or continue for lack of a quorum. A tie vote constitutes a denial of an item, except that a member of the Board may then move that the item be reconsidered or continued to another meeting. A majority of the Board may then vote to reconsider or continue the item to another meeting. ARTICLE VI Meetings Section 6.0 Regular meetings of the HRB shall be held twice a monthly or at the pleasure of the Chairperson, but no fewer than four meetings per year. The Chairperson shall establish the dates of the meetings. Meetings shall be held on Thursday at 8:30 A.M. in the Palo Alto City Hall. HRB regular meetings shall occur on alternate Thursdays from ARB regular meetings. Regular meetings may be adjourned and reconvened upon a majority vote of the members present. Section 6.1 Special meetings may be called at any time by the Chairperson, or at the request of three members, by a written or oral notice given to each member at least 48 hours before the time specified for the proposed meeting. Item 2 Attachment A HRB Bylaws with proposed changes     Packet Pg. 11     DRAFT 011415 cs 0131565 3 Rev. June 13, 2024 4 7 1 1 Section 6.2 Boardmembers may attend remotely to the extent permitted by State law. ARTICLE VII Rules Section 7.0 All meetings of the Board shall be conducted in accordance with a modified Robert’s Rules of Order. THE FOREGOING BY-LAWS WERE ADOPTED BY A MAJORITY VOTE OF THE PALO ALTO HISTORIC RESOURCES BOARD THE 4TH DAY OF FEBRUARY 2015. Amended: January 6, 2017 March 9, 2023 June 13, 2023 Item 2 Attachment A HRB Bylaws with proposed changes     Packet Pg. 12     NOT YET APPROVED 1 0160142_20240430_ay16 Ordinance of the Council of the City of Palo Alto Amending Chapter 2.27 (Historic Resources Board) of the Palo Alto Municipal Code (PAMC) to Reduce the Number of Historic Resources Board Members from Seven to Five SECTION 1. Findings and Declarations. A. The City of Palo Alto is a Certified Local Government (CLG) with obligations to maintain a historic resources board of at least five members with at least two members in professions set forth by the State Office of Historic Preservation. B. Recent recruitment for the Historic Resources Board have not yielded sufficient candidates to fill all open seats or sufficient open seats to maintain a four-member quorum of the Board. SECTION 2. Section 2.27.010 (Historic Resources Board) of Chapter 2.27 (Historic Resources Board) of Title 2 (Administrative Code) of the Palo Alto Municipal Code (PAMC) is amended to read as follows (additions underlined and deletions struck-through): 2.27.010 Historic Resources Board. The Historic Resources Board shall be composed of seven five members appointed by the city council and serving without pay. Members shall have demonstrated interest in and knowledge of history, architecture, or historic preservation. One member shall be an owner/occupant of a category 1 or 2 historic structure, or of a structure in a historic district; three Two members shall be professionals in the disciplines of architecture, architectural history, planning, landscape architecture, or related disciplines, or pre-historic and historic archeology, folklore, cultural anthropology, curation, or conservation architects, landscape architects, building designers or other design professionals and at least one member shall possess academic education or practical experience in history or a related field such as American studies, American civilization, or cultural geography. The Palo Alto Historical Association shall be given notice of vacancies on the board and shall be encouraged to have its members submit applications. SECTION 3. Section 2.27.030 (Organization) of Chapter 2.27 (Historic Resources Board) of Title 2 (Administrative Code) of the Palo Alto Municipal Code (PAMC) is amended to read as follows (additions underlined and deletions struck-through): 2.27.030 Organization. (a) The Board shall hold meetings twice monthly or at the pleasure of the chairperson, but no fewer than four meetings per year. (b) and The Board shall establish such rules as may be appropriate and necessary for the orderly conduct of its business, consistent with City Council guidelines for boards and commissions. (c) The Board shall elect a chairperson and a vice chairperson from its membership who shall serve in such capacity for terms of one year each, or until a successor is elected. The Item 2 Attachment B: Ordinance modifying PAMC Chapter 2.27 Sections 2.27.010 and 2.27     Packet Pg. 13     NOT YET APPROVED 2 0160142_20240430_ay16 chairperson shall preside over meetings of the board, and in the absence or disability of the chairperson, the vice chairperson shall perform the duties of the chairperson. (bd) Four Three members shall constitute a quorum and decisions of the board shall be determined by majority vote of those members present at the meeting. Action minutes shall be kept by the Board. SECTION 4. Any provision of the Palo Alto Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 5. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 6. The Council finds that the adoption of this ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to CEQA Guideline Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. // // // // // // // Item 2 Attachment B: Ordinance modifying PAMC Chapter 2.27 Sections 2.27.010 and 2.27     Packet Pg. 14     NOT YET APPROVED 3 0160142_20240430_ay16 SECTION 7. This ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Attorney City Manager ____________________________ Director of Planning & Development Services Item 2 Attachment B: Ordinance modifying PAMC Chapter 2.27 Sections 2.27.010 and 2.27     Packet Pg. 15     Item No. 3. Page 1 of 3 Historic Resources Board Staff Report From: Planning and Development Services Director Lead Department: Planning and Development Services Meeting Date: June 13, 2024 Report #: 2405-3020 TITLE Recommendation on Tailored Mills Act Program RECOMMENDATION Staff recommends the Historic Resources Board (HRB): 1. Resume its discussion regarding the Mills Act Tailored Program Outline (Attachment A). 2. Discuss an approach/recommendation to present a Mills Act preservation incentive proposal to City Council including the review of the submitted letter with recommendations to City Council (Attachment B). BACKGROUND At the May 9, 2024, HRB meeting staff presented a report recommending the HRB discuss an approach/recommendation to present a Mills Act preservation incentive proposal to City Council.1 The HRB voted to continue the discussion to the June 13, 2024, meeting. Previously, the HRB ad hoc committee prepared a Mills Act Tailored Program Outline that was last updated in January of 2018 (Attachment A). As the name suggests, the program outline was tailored to meet the unique needs and goals of the community in Palo Alto. Other Tailored Mills Act programs have been successfully adopted by cities such as Oakland, Berkeley, San Francisco, Saratoga, Los Altos, San Jose and Campbell to address the specific needs of their communities. Some of these cities also experience similar complications of high property values and school districts supported by basic aid. The cities that have both basic aid school districts and a Mills Act program include Beverley Hills, Campbell, Los Altos and Saratoga. 1 May 9, 2024, HRB Meeting Agenda Item 3, Tailored Mills Act Program Recommendation to City Council: Packet_2024050316292674.pdf (cityofpaloalto.org) Item 3 Staff Report     Packet Pg. 16     Item No. 3. Page 2 of 3 Staff consulted with the Historic Preservation staff at some of these jurisdictions to confirm the following information in the table below to aid in the discussion. TAILORED MILLS ACT PROGRAMS City Basic Aid Number of Contracts Program Start Date City Revenue Loss Limits School District Revenue Loss Limits Beverley Hills Yes 6 2011 $500,000 per yr. ($5,000,000 for 10 yrs.) $400,000 per yr. ($4,000,000 for 10 yrs.) Campbell Yes 11 2011 No set limit (City receives >15% of property taxes with adjustment for special districts) - Oakland No 89 2006 $25,000 per contract (Increases subject to City Council Approval) - Saratoga Yes 17 2003 No set limit (No more than 3 contracts allowed in a calendar year) - RESOURCE IMPACTS Because a Mills Act contract results in a tax relief incentive for the property owner, it also results in a reduction in the annual revenue for the Palo Alto Unified School District and a small reduction in City General Fund revenue. The proposed Mills Act Tailored Program Outline includes tax redirection limitations ($150,000/year, to be adjusted annually in amount equivalent to the percent change of the overall assessed valuation) and property valuation limitations ($5,000,000 or less for residential and $10,000,000 or less for commercial) to combat potential fiscal impacts. It is worth nothing that the City Council may choose to further limit potential fiscal impacts through other various approaches. In other jurisdictions with similar basic aid school districts, potential revenue loss has been combated through limiting the number of contracts allowed in a given calendar year such as in Saratoga or by setting limits on the total revenue loss such as in Beverley Hills. The City of Campbell does not have any revenue loss limits, but a recent audit of its Mills Act program revealed homeowners spent $413,578 more than their County tax benefits and spent $646,325 more than the City tax benefits.2 On a cumulative basis, the City of Campbell homeowners’ expenditures for the improvement, maintenance, and restoration of their homes far exceed any tax benefits provided to them by virtue of the Mills Act. 2 April 23, 2024, City of Campbell City Council Staff Report: https://ca-campbell.civicplus.com/DocumentCenter/View/22450/Historic-Preservation-Ordinance-Update-April- 2023-Council-Meeting Item 3 Staff Report     Packet Pg. 17     Item No. 3. Page 3 of 3 The Draft HRB letter of Recommendations to City Council (Attachment B) requests a pilot program to be considered that incorporates some of these approaches utilized by other jurisdictions. Namely, the consideration of no more than three properties to be under contract and adherence with the previously prepared Mills Act Tailored Program Outline with tax revenue and property valuation limitations. NEXT STEPS Should the HRB concur with the submitted letter providing the HRB’s recommendations to City Council, staff recommends scheduling an introductory Council study session. The session goal would include establishing clear upfront expectations for homeowners considering a contract and reduce the subjectivity of application reviews. The study session would include a primer detailing the current incentives and regulations for historic resources in Palo Alto. Combining these efforts provides for a more efficient use of staff time and may improve the community’s support for historic preservation. ATTACHMENTS Attachment A: Mills Act Tailored Program Outline Attachment B: Draft HRB Letter of Recommendations to City Council AUTHORS: Amy French, Chief Planning Official Steven Switzer, Historic Preservation Planner Item 3 Staff Report     Packet Pg. 18     MILLS ACT TAILORED PROGRAM OUTLINE January 2018 Prepared by the City of Palo Alto & the Historic Resources Board Item 3 Attachment A Mills Act Tailored Program Outline     Packet Pg. 19     1 Introduction ...................................................................................................................................2 Tailored Program Summary......................................................................................................................2 Role of the Applicant................................................................................................................................3 Role of Planning Department....................................................................................................................3 Role of Historic Resources Board..............................................................................................................3 Role of Santa Clara County Assessor’s Office............................................................................................3 Role of California Office of Historic Preservation.....................................................................................3 Mills Act State Policy ....................................................................................................................................4 State Criteria for Eligibility........................................................................................................................4 State Contract Requirements ...................................................................................................................4 Proposed Local Mills Act Policy ...................................................................................................................5 Local Mills Act Criteria for Eligibility .........................................................................................................5 Local Mills Act Program Regulations.........................................................................................................5 Term Limitations.................................................................................................................................5 Tax Redirection Limitations.................................................................................................................5 Property Value Limitations..................................................................................................................5 Ranking System...................................................................................................................................6 Cancellation Penalty............................................................................................................................6 Fees.....................................................................................................................................................6 Submittal Date....................................................................................................................................6 Local Mills Act Contract Requirements.....................................................................................................7 HRB Review.........................................................................................................................................7 Rehabilitation and Maintenance Plan.................................................................................................7 Eligible Work..................................................................................................................................7 Ineligible Work...............................................................................................................................8 Tax Redirection...................................................................................................................................8 Property Inspection.............................................................................................................................8 Application Checklist ....................................................................................................................................9 Figure 1. Mills Act Contract Timeline............................................................................................................6 Item 3 Attachment A Mills Act Tailored Program Outline     Packet Pg. 20     2 INTRODUCTION Enacted by the State of California in 1972, the Mills Act grants participating local governments the authority to enter into contracts with owners of qualified historic properties who actively participate in the restoration and maintenance of their historic properties while receiving property tax relief (CGC 12.50280-50290, CRTC 1.9.439-439.4). It is the “single most important economic incentive program in California for the restoration and preservation of qualified historic buildings by private property owners.”1 An important feature of the Mills Act program is its flexibility. Although the State has certain requirements that must be included in all individual Mills Act policies, the program allows jurisdictions to develop additional requirements to insure that unique local goals and needs are met. By implementing a tailored Mills Act program in Palo Alto, with finely tuned eligibility criteria and contract requirements, the City can both incentive the thoughtful preservation of our shared heritage and wisely address the community’s priorities and needs. Tailored programs have been successfully adopted in other California cities that have similar complications like high property values and schools supported by Basic Aid.2 Tailored Program Summary The Tailored Mills Act Program for Palo Alto will be program, where all tax relief received by a property owner will be reinvested in the rehabilitation, preservation or restoration of the historic property. Work will be reviewed and approved by the Historic Resources Board (HRB) and will comply with the Secretary of the Interior’s Standards (Standards). Mills Act contracts will be open to all property types but will be limited in length, the maximum being 15 years. For educational purposes, property owners will be required to fund, with tax redirection, and display an interpretive panel along the public right of way that is visible to the public. The Mills Act program is voluntary and requires owner consent. COMMUNITY P RIORITIES AND NEEDS ADDRESSED BY THE TAILORED MILLS ACT PROGRAM 1. contributes to Affordable Housing 3. safeguards a Sense of Place 5. fosters Civic Pride 7. protects Palo Alto’s History 9. provides Preservation Incentive 2. encourages Seismic Safety 4. promotes Heritage Tourism 6. preserves Neighborhood Character 8. supports Environmentally Conscious Development 1 California Office of Historic Preservation, “Mills Act Program,” http://www.ohp.parks.ca.gov/?page_id=21412. 2 Other nearby communities with successful Mills Act programs includes Oakland, Berkeley, San Francisco, Saratoga, Los Altos, San Jose and Campbell. Cities that have both basic aid school districts and Mills Act program include Beverley Hills, Campbell, Los Altos and Saratoga. Item 3 Attachment A Mills Act Tailored Program Outline     Packet Pg. 21     3 Role of the Applicant The Applicant is responsible for the maintenance and upkeep of the property during the duration of the Mills Act contract and must follow the approved Rehabilitation and Maintenance plan. The Applicant is responsible for obtaining appropriate documents, signatures and recordation attachments as well as associated fees prior to work and successful contract recordation. Role of the Planning Department The Planning Department oversees all Mills Act applications and monitors existing Mills Act properties. The Historic Preservation Planner will work with property owners to complete their applications and develop rehabilitation and maintenance plans that are specific to each property. The Planning Department will keep the applicant(s) informed throughout the year, as the application moves forward through HRB review, City Council and the Assessor’s Office. Once a Mills Act contract is entered into, all subsequent work on the property during the duration of the contract will require staff approval which includes compliance with the Standards. Role of the Historic Resources Board The HRB will first hold a hearing to consider a recommendation to City Council whether to approve, modify or deny the initial Mills Act application. Once a Mills Act contract is entered into, all subsequent work on the property during the duration of the contract will require staff approval. If staff determines proposed work does not comply with the Standards, staff will refer the application to the HRB. Role of Santa Clara County Assessor’s Office The role of the Assessor’s Office is to locate and accurately assess all taxable property Palo Alto and also serve as the county’s official record-keeper of documents such as deeds, liens, maps and property contracts. In a Mills Act Historical Property contract, the Assessor’s Office assesses qualified properties based on a state prescribed approach and records the fully executed contract. All Mills Act properties will receive an initial valuation during the application process and will be assessed annually by the January 1st lien date and in subsequent years, as required by state law. The State Board of Equalization has strict guidelines the assessor must follow in order to value Mills Act properties (Revenue and Taxation Code Section 439.2). Role of the California Office of Historic Preservation OHP provides Mills Act information to local governments and uses information provided by local governments to maintain a list of communities participating in the Mills Act program as well as copies of Mills Act ordinances, resolutions, and contracts that have been adopted. OHP does not participate in the contract negotiations, is not a signatory to the contract and has no authority over the administration of the Mills Act program. Item 3 Attachment A Mills Act Tailored Program Outline     Packet Pg. 22     4 MILLS ACT STATE POLICY Effective March 7, 1973, Chapter 1442 of the Statutes of 1972 (also known as the Mills Act) added sections 50280 through 50289 to the Government Code to allow an owner of qualified historical property to enter into a preservation contract with local government. When property is placed under such a contract, the owner agrees to restore the property if necessary, maintain its historic character, and use it in a manner compatible with its historic characteristics. State Criteria for Eligibility As set forth in California’s Government Code 50280.1, a property is eligible for the Mills Act as follows: “Qualified historical property” for purposes of this article, means privately owned property which is not exempt from property taxation and which meets either of the following: (a) Listed in the National Register of Historic Places or located in a registered historic district, as defined in Section 1.191-2 (b) of Title 26 of the Code of Federal Regulations. (b) Listed in any state, city, county or city and county official register of historical or architecturally significant sites, places or landmarks. State Contract Requirements As set forth by California Government code 50281, the following requirements must be included in the language of any Mills Act contract: (a) The term of the contract shall be for a minimum period of 10 years. (b) Where applicable, the contract shall provide the following: (1) For the preservation of the qualified historical property and, when necessary, to restore and rehabilitate the property to conform to the rules and regulations of the Office of Historic Preservation of the Department of Parks and Recreation, the United States Secretary of the Interior’s Standards for Rehabilitation, and the State Historical Building Code. (2) For the periodic examinations of the interior and exterior of the premises by the assessor, the Department of Parks and Recreation, and the State Board of Equalization as may be necessary to determine the owner’s compliance with the contract. (3) For it to be binding upon, and inure to the benefit of all successors in interest of the owner. A successor in interest shall have the same rights and obligations under the contract as the original owner who entered into the contract. Item 3 Attachment A Mills Act Tailored Program Outline     Packet Pg. 23     5 PROPOSED LOCAL MILLS ACT POLICY The proposed Tailored Mills Act Program must include all the State contract requirements above. In addition, staff is proposing to include the following more restrictive criteria to balance historic preservation with the significant competing goals of the community, which is allowed under the State’s Mills Act program. Local Mills Act Criteria for Eligibility As allowed by the State, staff proposes the following local modifications of the term “qualified historical property” which will be defined as any property that meets any of the following: (a) Listed in the National Register of Historic Places or located in a registered historic district, as defined in Section 1.191-2 (b) of Title 26 of the Code of Federal Regulations; (b) Listed in the California Register of Historical Resources; (c) Listed on the City’s Historic Inventory as Category 1 through 4, as defined in Section 16.49.020 of PAMC (b); or (d) Contributing to a Local Historic District, as defined in Section 16.49.020 of PAMC (c). Local Mills Act Program Regulations As allowed by the State, staff proposes the following local regulations, which do not invalidate State requirements: (a) Term Limitations: Mills Act Contracts will have a minimum term of ten years and a maximum term of 15 years. This is accomplished by the City issuing a notice of nonrenewal in the 5th year of the agreement, after which the remaining 10-year term of the contract occurs before the agreement formally terminates. During the 10 year phase-out period, the property tax benefits enjoyed by the Mills Act property gradually decrease until they reach the full regularly assessed value of the property at the end of the final year (Figure 1). (b) Tax Redirection Limitations: A limit will be set on the total tax redirection that can be associated with Mills Act properties. Program impact on City revenues will be limited to $150,000/year, to be adjusted annually in amount equivalent to the percent change of the overall assessed valuation of the City for the previous year, excluding those properties that have been issued a notice of nonrenewal. (c) Property Value Limitations: A limit will be set on total property value that would be eligible for Mills Act contract. Pre-contract assessed valuation limits will be $5,000,000 or less for residential and $10,000,000 or less for commercial.3 3 To be adjusted for inflation Item 3 Attachment A Mills Act Tailored Program Outline     Packet Pg. 24     6 Figure 1. Mills Act Contract Timeline (c) Ranking System: A ranking system will be employed by the HRB when reviewing Mills Act applications that is based on community priorities and needs and utilizes the criteria listed below. Staff considers that the scope of the required rehabilitation plan will ensure that all applications for a Mills Act will bestow a major public benefit on the community by extensively rehabilitating and maintaining historic properties. Public access to private homes is not a requirement. A higher ranking will be given to those applications that demonstrate that entering into a Mills Act contract: ▪Will result in more affordable housing units; ▪Will substantially reduce the threat to the historic property of demolition, deterioration, abandonment and/or general neglect; ▪Will result in the greatest number of improvements to the historic property, resulting in the greatest benefit to the public. (d) Cancellation Penalty: Noncompliance with the provisions of a Mills Act contract will result in either legal action against the owner or contract cancellation. A contract may be cancelled if the City determines that the owner has breached any of the conditions of the contract or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified historical property. The contract may also be canceled it is determined that the owner has failed to restore or rehabilitate the property in the manner specified in the contract. No contract shall be canceled until property owner has been properly noticed and a public hearing is held. If the contract is cancelled, the owner must pay a penalty of 12.5% of the market value of the property at the time of cancellation, per state law.4 The cancellation fee shall be paid to the City Tax Collector at such time and in such manner as the City shall prescribe. (e) Fees: Initial permit and planning fees will be waived for Mills Act participants. There will be no application fee for submitting a Mills Act contract application but a one- time activation fee of $250 will be required if the contract is selected and initiated. 4 California Government Code, Article 12, Section 50286 Item 3 Attachment A Mills Act Tailored Program Outline     Packet Pg. 25     7 (f) Submittal Date: Applications will only be accepted and approved during the month of June in any given year in order to allow sufficient time for the City and Assessor’s Office to determine the cumulative financial impact, to record contracts prior to January 1st in any given year and to reduce the cost of processing applications. Local Mills Act Contract Requirements As allowed by the State, staff proposes the following local additions to the State’s contract requirements: (a)HRB Review: All Mills Act applications, including rehabilitation and maintenance plans and subsequent work, will be reviewed and approved by the Historic Resources Board. (b)Rehabilitation and Maintenance Plans: A rehabilitation and maintenance plan will be required to be submitted for attachment to the Mills Act contract. All work performed must conform to the rules and regulations of the California Office of Historic Preservation, including compliance with the Secretary of the Interior’s Standards and the State Historic Building Code. The rehabilitation plan must include restoration of the identified character defining features of the property and the removal or compatible replacement of incompatible alterations. The rehabilitation plan can include exterior and interior work that has been pre-approved. Qualified rehabilitation and restoration work that commenced up to two years before the establishment of the contract may be indicated on the ten-year rehabilitation plan. An annual report detailing the rehabilitation and restoration work performed during the past year along with the overall cost of the work performed will also be required. In general, work that is directly related to the repair or improvement of structural and architectural features of the historic building will qualify. Examples of eligible and ineligible work include but are not limited to: Eligible Work ▪Seismic upgrading ▪Foundation repair ▪Re-roofing and downspout restoration ▪Exterior siding and trim repair and restoration ▪Historic windows repair and restoration ▪Paint exterior ▪Removal of inappropriate additions and construction ▪Plumbing system upgrades Item 3 Attachment A Mills Act Tailored Program Outline     Packet Pg. 26     8 ▪Electrical system upgrades ▪Original door, hardware and other features restoration ▪Front iron fencing restoration ▪Chimney stabilization ▪Consulting/Professional fees (limit this?) ▪Repair and restoration of original interior features (like original built-ins and woodwork) must get HRB approval to be considered eligible ▪HVAC systems (heating, ventilation and air conditioning) ▪Solar panels must be essential to the operation or maintenance of the rehabilitated historic building and must get HRB approval to be considered eligible5 Ineligible Work ▪New construction and additions ▪Landscaping ▪Homeowner labor ▪Acquisition/furnishing costs ▪Parking lot (c)Tax Redirection: All tax savings must be redirected into rehabilitation work for the property and the anticipated construction must be equal to or greater than tax savings. (d)Property Inspection: The property will be inspected annually/ every two years/ dependent on work proposed by the Historic Preservation Planner (accompanied by the Building Official if necessary) to determine compliance with the Mills Act contract and approved Rehabilitation and Maintenance plan. (e)Educational Component: For educational purposes, property owners will be required to fund, with tax redirection, and display an interpretive panel along the public right of way that is visible to the community. The panel will include information on the history and architectural merit of the home for the public to enjoy. The property will also be used for exterior home tours at the discretion of the City and other promotional material with proper notification. 5 See National Park Service, Historic Tax Credit Qualified Expenses explanation on solar panels. Generally, HVAC features are included as eligible cost so the function and purpose of a renewable energy system will determine if it is an eligible expense. Systems that produce electricity to back feed the power grid may not qualify (https://www.nps.gov/tps/tax-incentives/before-apply/qualified-expenses.htm). Item 3 Attachment A Mills Act Tailored Program Outline     Packet Pg. 27     9 APPLICATION CHECKLIST Item 3 Attachment A Mills Act Tailored Program Outline     Packet Pg. 28     Esteemed City Council Members, Through the process of updating the local inventory during the 2024 workplan year, the HRB heard repeatedly that Palo Alto homeowners would be much more inclined to support historical designations for their properties if improved benefits for such listing were provided by the city and state. The HRB will continue to work with community members to create local incentives and public awareness of the benefits of listing on the local inventory in the 2025 workplan. That said, the HRB would be remiss not to revisit the most significant historic preservation incentive the state of California provides: The Mills Act. THE MILLS ACT: The Mills Act is an economic incentive program for owners of historic buildings that are listed on the National Register of Historic Places, or a state, county, or local register. These registers include the California Register of Historical Resources and the Palo Alto Historic Inventory. The Mills Act is the single most important economic incentive program for private property owners in California. Though Palo Alto does not have an official Mills Act process, the city holds one contract currently. The Squire House, at 900 University Avenue, entered into the Mills Act contract with the city in 1999. The contract has been continuously renewed. BACKGROUND ON PALO ALTO’S MILLS ACT DISCUSSION: The attached Tailored Mills Act program was originally drafted by the HRB in 2018 with the assistance of former historic preservation planners. An ad hoc committee refined and revised the program during the 2021-2022 workplan year. The document attached includes revisions made during this time. After updating the local inventory during the 2023-2024 workplan year, the HRB now turns to resuming work on the Mills Act program. In 1997, City Council withheld a Mills Act contract for another property, citing concerns over the deferment of tax dollars away from PAUSD. Today, Palo Alto’s schools benefit from a voter-approved parcel tax that provides over $15 million per year in locally controlled funding that cannot be seized by the state. As of October 2023, PAUSD Chief Business Officer Carolyn Chow indicated that the school district was operating with a balanced budget. REQUEST OF COUNCIL: With this in mind, the HRB again approaches Council to consider a “pilot” program for a Palo Alto Mills Act program. Program highlights and safeguards for this pilot include: ● Prioritization of properties that are threatened by development, have immediate rehabilitation needs, provide an element of public use, contribute to affordable or denser housing, or are considered the most significant to Palo Alto’s identity. ● Stipulations that the program will promote heritage tourism, encourage seismic safety, foster civic pride, and safeguard a sense of place. ● Proposed Mills Act contracts will be vetted and approved by Council, including all monetary projections of tax diversions. DRAFT Item 3 Attachment B DRAFT HRB Letter of Recommendations to City Council     Packet Pg. 29     ● Contracts will only be granted to properties whose significance has been verified by expert authority. ● Each contract will include an enforceable plan for public benefit and educational purposes. ● Each contract will include the state contract requirements for such agreements. The pilot program would identify properties that meet the qualifications above and would include no more than three properties. Owners would be approached to gauge interest in participating in the pilot program. The HRB expects that participation in the pilot program, as well as any future Mills Act Contracts, will be both a lengthy and involved process for property owners. The requirements and involvement in this process ensure that properties with the greatest needs, and few other resources for preservation, will receive the most benefit. We are asking for Council’s approval to move forward with a Mills Act Pilot Program, which will follow the tailored program summary as attached. Sincerely, DRAFT Item 3 Attachment B DRAFT HRB Letter of Recommendations to City Council     Packet Pg. 30     Item No. 4. Page 1 of 1 Historic Resources Board Staff Report From: Planning and Development Services Director Lead Department: Planning and Development Services Meeting Date: May 9, 2024 Report #: 2404-2961 TITLE Approval of Historic Resources Board Draft Minutes of April 11, 2024 RECOMMENDATION Staff recommends the Historic Resources Board (HRB) adopt the attached meeting minutes. BACKGROUND Attached are minutes for the following meeting: •April 11, 2024 ATTACHMENTS Attachment A: HRB 4.11 Minutes AUTHOR/TITLE: Amy French, Chief Planning Official Item 4 Staff Report     Packet Pg. 31     City of Palo Alto Page 1 Call to Order/Roll Call Present: Chair Alisa Eagleston-Cieslewicz; Vice Chair Samantha Rohman; Board Members Christian Pease and Caroline Willis Absent: Board Members Gogo Heinrich, Michael Makinen and Margaret Wimmer Public Comment Agenda Changes, Additions and Deletions City Official Reports 1. Historic Resources Board Schedule of Meetings and Assignments Chief Planning Official Amy French reported the absence of Board Members Heinrich and Wimmer. The decision for monthly meetings, at the Chair’s discretion, was affirmed as per the Palo Alto Municipal Code. No quarterly Historic Resources Board (HRB) meetings are currently scheduled, with a potential meeting in July. Ms. French is preparing a report for the City Council to propose modifications to the HRB composition and member count. While drafting the Certified Local Government (CLG) Annual Report, she discovered that the CLG requires a minimum of five members, including at least two professionals from a diverse range of professions. She is working on an ordinance change to align with this requirement, suggesting a reduction of two professionals who could be architects or from other professions. Ms. French presented the proposed changes to the draft language and advised that they would be posted online as a proposal to Council in May, followed by a recruitment process for an additional candidate. Board Member Willis inquired about the omission of the April 25, 2024, meeting from the schedule. Ms. French clarified that the Board has adopted a monthly meeting schedule, at the Chair’s and Staff’s convenience. With a Historic Planner joining the staff in May, the team anticipates increased capacity to support quarterly meetings. The frequency of meetings may be reassessed by the next Chair. The upcoming meeting is scheduled for May. Board Member Willis requested Ms. French to email the proposed ordinance changes. Ms. French agreed to the request. Action Items 2. PUBLIC HEARING/QUASI-JUDICIAL. 411 Kipling Street [24PLN‐00032]: Request for Historic Designation Reclassification, From a Local Historic Resource Category 4 to a Category 2. Environmental Assessment: No project under California Environmental Quality Act and CEQA Guidelines per Section 21065. Zone District: CD‐C (P) ‐ Downtown Commercial with Pedestrian Shopping Combining District. For More Information Contact Kristina Paulauskaite at Kristina.Paulauskaite@CityofPaloAlto.org. HISTORIC RESOURCES BOARD MEETING DRAFT MINUTES, April 11, 2024 Council Chamber & Virtual Zoom 8:30 A.M. Item 4 Attachment A - HRB 4.11 Minutes     Packet Pg. 32     City of Palo Alto Page 2 Associate Planner Kristina Paulauskaite advised that she was assisting Ms. French with the Historic Program with the City of Palo Alto (City). She presented an overview of the request to reclassify 411 Kipling Street from Category 4 to Category 2. This building, located in the Commercial Downtown with the Pedestrian Shopping Combining District zone, offers a contrast to the larger commercial scale and higher density of University Avenue. The building’s history was discussed. Constructed in 1902 as a one-and-a-half story home by George Wilbert Mosher, a prolific contractor and craftsman, the building remained largely unchanged until the late 1980s. Mr. Mosher, who constructed hundreds of buildings during the late 19th and early 20th centuries, made 411 Kipling Street a prime example of the early Palo Alto “Square Cottage” building type, featuring stylistic elements of Colonial Revival and Queen Anne Free Classic. In 1985, the building was surveyed for the Historic Resources Inventory and added to the local register as a Category 4 building, a classification for good examples of architectural styles that relate to the character of a neighborhood grouping in scale, materials, proportion, or other factors. It is not within the National Register of Historic District boundaries. In November 2023, Page & Turnbull prepared a Historic Resource Evaluation (HRE) for the City at the applicant’s expense. The HRE found the subject property individually eligible for listing in the City’s Historic Resources Inventory under Criterion 2, 5, and 6. In February 2024, Mark Sterns, on behalf of Hayes Group Architects, submitted a Major Historic Resources Board Review. The applicant requested a reclassification of the one-story commercial building from a “Contributing Building” Category 4 resource to a “Major Building” Category 2 resource on the Palo Alto Historic Inventory. The staff concurred with the findings of the Page & Turnball evaluation and supported the upgrade from a Category 4 to a Category 2. The Historic Resources Board (HRB) was requested to recommend the reclassification from Category 4 to Category 2 to the City Council for approval, disapproval, or modification. In addition to the recommended action, the HRB may continue or deny the reclassification. Ken Hayes, applicant, informed that 411 Kipling Street was originally built as a residential rental property. He highlighted that the immediate vicinity is an early 20th-century residential block, where every building, except the former Apple building, is locally listed as a Category 2, 3, or 4 historic structure. According to the Sanborn maps, 411 Kipling appears to be the first structure erected on that specific property. Mr. Hayes presented pictures of the building to showcase its stylistic elements and echoed Ms. Paulauskaite’s comments about the building’s classification process. He urged the Board to endorse the efforts to memorialize the building and support the Staff’s recommendation. John Shenk, applicant, expressed his gratitude to the Board and shared his anticipation for the processing of this matter. He considered Kipling as one of the most unique streets in Downtown. He voiced his enthusiasm to aid in preserving the building and enhancing its significance to the community. He observed that the public was largely unaware of these historic buildings that deserved more recognition Board Member Willis inquired if Mr. Shenk had thought about a Historic District on Kipling Street. Mr. Shenk confirmed that he had, although he was unsure of its implications. He noted that almost the entire block, with each of the homes in their various states of categorization, could be considered. He suggested collaborating with Mr. Hayes to explore this possibility. Chair Eagleston-Cieslewicz invited further discussion from the Board. Board Member Willis proposed that the Board should consider aligning the rest of the inventory with the City’s current standards at some point. Chair Eagleston-Cieslewicz agreed that the request was reasonable and asked for a motion. MOTION Motion by Board Member Willis that the HRB recommend the City Council reclassify the building at 411 Kipling Street from a ‘Contributing Building’ Category 4 resource to a ‘Major Building’ Category 2 resource on the Palo Alto Historic Resources Inventory. Seconded by Board Member Pease, the motion passed (4- 0-0-3) by roll call vote. 3. PUBLIC HEARING/QUASI-JUDICIAL. 271 University Avenue [24PLN‐00039]: Request for Historic Designation Reclassification, From a Local Historic Resource Category 3 to a Category 2. Environmental Assessment: No project under California Environmental Quality Act and CEQA Guidelines per Section 21065. Zone District: CD‐C (GF)(P) ‐Downtown Item 4 Attachment A - HRB 4.11 Minutes     Packet Pg. 33     City of Palo Alto Page 3 Commercial with Ground Floor and Pedestrian Shopping Combining District. For More Information Contact Kristina Paulauskaite at Kristina.Paulauskaite@CityofPaloAlto.org. Ms. Paulauskaite presented a proposal to the Staff for the reclassification of 271 University Avenue from Category 3 to Category 2. This property, located in the Downtown North neighborhood, is prominently positioned along the commercial corridor of University Avenue. The building, a fine example of the Art Deco style, was constructed in 1930. From its inception until the 1940s, only a handful of modifications were made. In 1946, a fabric awning was added, and in 1965, the original storefront system was replaced with a new aluminum roll-up and swing glass storefront door system. From then until 2015, various other changes were implemented, but no major alterations have been made since. The building is a notable work of Carl I. Warnecke, a respected Bay Area architect who left a significant legacy in the architectural field, particularly in the East Bay. He primarily worked in Oakland and Piedmont through his partnership with Chester H. Miller, an Oakland native who gained his architectural knowledge through vocational training rather than formal education. Ms. Paulauskaite emphasized the building’s Art Deco style, its historical significance, and the timeline of its construction and modifications. The Staff agreed with her findings and supported the proposal to upgrade 271 University Avenue from a Category 3 to a Category 2 resource. The building is recognized as an exceptional work of Carl I Warneke and an outstanding representation of the Art Deco Zig-Zag Moderne style. The Historic Review Board (HRB) is being asked to recommend this reclassification from Category 4 to Category 2 to the City Council for their consideration and potential approval, disapproval, or modification. The HRB also has the option to continue or deny the reclassification process. Ken Hayes, applicant, expressed his gratitude to the staff for their assistance in advancing the application. He voiced his support for the project at 437 Kipling, which is currently under consideration for recognition as a Category 2 resource. He drew attention to the building’s Art Deco style, its historical significance, and the modifications it has undergone over time. The building is currently designated as a Category 3 resource, indicating local significance. The city engaged the services of Page & Turnbull, funded by the applicant, to evaluate the building’s eligibility for elevation to Category 2. The Historic Resources Evaluation (HRE) determined that the property qualifies for listing in the City’s Historic Resources Inventory under Criteria 2, 5, and 6. Mr. Hayes urged the Board to endorse this unique Palo Alto building and support the staff’s recommendation to elevate it from Category 2 to Category 3 Chair Eagleston-Cieslewicz opened the floor for discussion among the Board Members. Board Member Willis expressed her admiration for the building, describing it as one of her favorites in town. She recalled witnessing its construction in the 1980s and advocating for more extensive restoration of the first floor. Despite the fact that the interior of the building is not entirely original, Board Member Willis appreciated the preservation of much of the original detailing. She felt the building was on the verge of qualifying for Category 1, but believed the first-floor façade could be a potential obstacle. Vice Chair Rohman reflected on the city’s rich architectural diversity, expressing her appreciation for the care and effort invested in preserving these buildings and enhancing their status to ensure their continued preservation. MOTION Motion by Chair Eagleston-Cieslewicz that the HRB recommends the elevation of 271 University Avenue to a Category 2 on the Palo Alto Historic Resources Inventory for consideration by Council. Seconded by Vice Chair Rohman, the motion passed (4-0-0-3) by roll call vote. Board Member Willis communicated to Mr. Hayes and Mr. Shenk that the Board is looking for an additional member. She said that any suggestions from them would be highly appreciated. [The HRB adjourned for a brief intermission at 9:08 a.m. and reconvened at 9:14 a.m.] 4. Historic Resources Board Discussion of Work Plan for 2024-25 and Review of Certified Local Government (CLG) Annual Report Ms. French presented the staff report, discussing both the Work Plan and the CLG Annual Report. On March 28, the HRB initiated discussions on the achievements from 2023-24 and potential objectives for the 2024- 25 work plan. The proposed goals encompassed a limited modification to PAMC 16.49 and clarifications Item 4 Attachment A - HRB 4.11 Minutes     Packet Pg. 34     City of Palo Alto Page 4 about the HRB’s role (Goal 1), enhancement of preservation outreach including improved communication methods for community accessibility (Goal 2), training on the State’s historic building code (Goal 3), and additional preservation incentives, incorporating ideas from the 2023 reconnaissance survey/inventory update (Goal 4). Ms. French proposed extending the current work plan until the end of June, enabling the Board to complete the Mills Act Program in May and June. She noted that the topics were organized into three draft goals, with the State Historic Building Code training included in Goal 2. She explained that Goal 1 would necessitate Council direction and accommodation in the PDS department work plan. Given the City’s CLG status, any changes to the historic ordinance would need State office of historic preservation approval before adoption. The implementation of draft work plan Goal 1 could commence in July, pending Council direction. The HRB is scheduled to present the nominations to the Council on April 22, 2024. The HRB will deliberate on language clarifications regarding its role on three potential topics: the nomination process, the impact of HRB recommendations on exterior modifications, and the downgrading or removal of a locally listed Category 1 or Category 2. Ms. French emphasized clarifications concerning Goal 1 nominations, HRB suggestions/recommendations, and category downgrading. Goal 2 aims to discover innovative methods to promote preservation, including the application of existing zoning code incentives and the State historic building code. The goal also involves enhancing communication methods to provide the community with accessible information, such as using videos to help property owners understand local and State preservation incentives and codes. Additionally, it includes enabling the HRB staff liaison(s), the City’s historic preservation consultant, and the Chief Building Official to conduct ongoing training for the HRB, staff, and the community on the use of the State’s historic building code. Goal 3 pertains to additional incentives, requiring Council direction and accommodation in the PDS department work plan. The goal seeks to extend the community engagement initiated during the 2023 reconnaissance survey/inventory update. Board Member Willis expressed her preference to remove the topic of “removal or downgrading of a locally listed Category 1 or Category 2.” She acknowledged the necessity of addressing this issue, but suggested prioritizing other tasks. Her recommendation was to focus on updating the current inventory. Ms. French pointed out that task was already included under Goal 1 (c) as a related activity, which involves conducting a survey of all existing 1970s/1980s HRI properties listed in the inventory. Board Member Willis inquired about the presence of any 1970s/1980s properties in the inventory. Ms. French clarified that these properties were identified and listed during that period, not necessarily built. She further emphasized the importance of this activity and predicted the need for an HRB subcommittee and additional resources due to potential outreach requirements. She also mentioned the involvement of a qualified consultant for form preparation and anticipated that the work might extend beyond the current work plan timeframe. However, she expressed optimism about the upcoming addition of a new staff member to assist with these tasks. Board Member Willis understood Ms. French’s points but emphasized the need for the Board to lobby the Council more actively. She suggested exploring more efficient techniques for addressing these issues. Ms. French proposed modifying Goal 1 (c) to align more closely with the related activity. Chair Eagleston-Cieslewicz suggested renaming Goal 1 (c) to “category changes.” Ms. French agreed that would cover potential changes such as the removal of demolished properties from the inventory. Vice Chair Rohman concurred with the proposed classification of Goal 1 (c) as “category changes” and expressed her support for the discussed modifications. Ms. French stated that Goal 1 (c) would involve conducting a survey of all existing properties to determine any necessary category changes. Vice Chair Rohman sought clarification, asking if they would be reviewing all items currently on the inventory, including those confirmed in the meeting held on April 22, 2024. Ms. French clarified that the focus would be on properties surveyed during the 1970s and 1980s, as the ones confirmed recently would not be included. Item 4 Attachment A - HRB 4.11 Minutes     Packet Pg. 35     City of Palo Alto Page 5 Chair Eagleston-Cieslewicz added that would involve both upgrades and downgrades for consistency, as well as removals for any properties no longer in. Board Member Willis suggested modifying the report to refer to “inventory properties” for clarity, as the term “existing 1970s/1980s properties” could be confusing. Ms. French hoped that in the report it says Category 1 and Category 2 but acknowledged needing to make changes to the work plan to state, “historic resources inventory properties prior to April 22, 2024.” Vice Chair Rohman asked whether they should consider everything prior to when the current Board was seated. Ms. French said she could state “prior to the 2023 survey.” She asked for clarification regarding whether she should change Goal 1 (c) to Goal 1 (a). Chair Eagleston-Cieslewicz felt that keeping it as Goal 1 (c) was appropriate. Ms. French explained that Goal 1 in its entirety was to modify Chapter 16.49, and the current discussion did not pertain to this modification. She proposed having four goals and suggested extending the current term to the end of June. If the Mills Act is addressed now, it could replace the placeholder for Goal 4. Board Member Pease inquired if this would reorder or eliminate the Mills Act. Ms. French proposed that if the term of the work plan is extended to the end of June with the current Board, and the Mills Act is addressed now, it could be removed from the next year’s work plan and replaced by the current discussion as Goal 4. Board Member Willis asked Ms. French about the Council’s potential commitment to the Mills Act and its impact on more than three properties. Ms. French responded that she did not have a clear sense of it, but based on past experiences, the support has been minimal. The Board would complete their part, prepare a report, and see what could be done. Board Member Pease asked if it was appropriate to discuss the scope of the Mills Act review at this point or if they would need to wait. Ms. French welcomed the discussion and mentioned that there would be room on the agenda of the next meeting to tackle the Mills Act. Chair Eagleston-Cieslewicz invited discussion regarding Goal 2 from the Board. Vice Chair Rohman thought this was an important goal and did not feel it should be Goal 2. It is stated that the Commission is to identify, evaluate, register, and preserve historic properties, and she thought that should be prioritized first. She felt incentives were more important than communication/promotion. Chair Eagleston-Cieslewicz said she would be supportive of that as well. Ms. French sought clarification on whether the goal of communication/promotion was being changed to incentives. Board Member Willis clarified that the discussion was about reordering the goals. Chair Eagleston-Cieslewicz believed the discussion was about reordering and prioritizing the current Goal 3 over the current Goal 2. Board Member Pease said he agreed with reordering but wanted to emphasize the need to distinguish between general public outreach and addressing specific complaints about confusion and misunderstanding. He suggested that this change in order could help drive the other goals. Vice Chair Rohman suggested rewording Goal 2 to make it clear that the goal is education. Ms. French asked if the title of Goal 2 should be changed to “Education.” Board Member Pease suggested renaming it to “User Support,” emphasizing the need to provide easy and quick learning resources for those trying to understand the process. Item 4 Attachment A - HRB 4.11 Minutes     Packet Pg. 36     City of Palo Alto Page 6 Board Member Willis proposed renaming the goal to “Communication/Education.” She shared her struggle with creating a chart for incentives and expressed the need to make the code easier to understand. Ms. French felt the challenge faced was that people like Mr. Hayes and others who do this kind of work knows the codes in and out, but homeowners who are new to the process are unfamiliar with the codes. Chair Eagleston-Cieslewicz acknowledged the complexity of the code and the limitations it places on simplifying the presentation of various incentives, options, and classifications. Ms. French pointed out the complexity of the review process and the difficulty of explaining it, especially for projects subject to CEQA. She emphasized the importance of Board discussions in this context. Vice Chair Rohman suggested replacing the word “promote” in Goal 2 with “education” to reflect the goal of creating user-friendly, educational resources. Ms. French noted down “new user-friendly resources” and asked if this would become Goal 1. Chair Eagleston-Cieslewicz clarified that it would become Goal 3. She recapped the goals as follows: Goal 1 is to modify the ordinance, Goal 2 is to implement preservation incentives, Goal 3 is to focus on education, and Goal 4 pertains to properties surveyed in the 1970s and 1980s. Board Member Willis sought clarification on whether Goal 2 would remain as it is. Ms. French pointed out that it was moved to Goal 3. She reiterated the goals: Goal 1 involves Chapter 16.49 modifications, Goal 2 focuses on additional preservation incentives, Goal 3 is about education and creating user-friendly resources, and Goal 4 is to conduct a survey of all existing inventory properties before the action on April 22, 2024, excluding those in the 2023 inventory update. Vice Chair Rohman suggested upgrading Goal 4, which involves re-examining the 70s/80s inventory, to one of the top three goals. Board Member Willis proposed moving incentives to Goal 4, allowing the Board to apply learnings from Goals 2 and 3. Board Member Pease expressed openness to reordering but emphasized that discussing incentives was the quickest way to address the Mills Act. He suggested presenting a comparison of incentives between commercial and residential properties and any Board suggestions for Council, rather than rewriting the Mills Act drafts. Ms. French advised that the adopted workplan would be discussed on April 22, 2024. She planned to repackage and send out information stating that the Mills Act and other incentives had been discussed. She explained that incentives to the zoning code would require Planning Commission review and would not go to Council in Q1 of the fiscal year. She felt that having incentives as Goal 4 made sense timeline-wise, and a subcommittee could continue discussing incentives Board Member Pease expressed confidence in Ms. French’s judgement. He questioned the impact of transferable development rights on three downtown properties, all represented by the same professional. He voiced concern about the lopsided situation in residential areas and the risk to more buildings in town than anything downtown or commercial. He expressed worry about houses being replaced by cookie-cutter mansions and advocated for opportunities for property owners to consider preserving them fairly. Ms. French clarified that assigning a number to a goal does not prevent work from commencing. Once designated as Goal 4, it is on the Board’s radar to seek permission to allocate resources. Meanwhile, a subcommittee could collaborate with staff to discuss previously heard matters and work on this table. Board Member Pease expressed his understanding of the sensitivity and including it in the work plans. However, he emphasized the importance of the Board establishing a credible framework, without which he saw no need for staff work. Ms. French proposed taking a vote. Chair Eagleston-Cieslewicz responded that she would prefer not to vote on the order if the Board could agree that all items are important and will be addressed. Item 4 Attachment A - HRB 4.11 Minutes     Packet Pg. 37     City of Palo Alto Page 7 Ms. French suggested removing the numbers entirely, listing the items in order of appearance with bullet points Board Member Willis felt that numbers would be useful for reference purposes. Ms. French highlighted that the work plan specifies the quarter to initiate each goal. She explained that if it is a Category 4, she could still refer to it along the lines of “begin quarter 1 with subcommittee meeting with staff…” and leading up to more extensive work. Chair Eagleston-Cieslewicz agreed with this approach Ms. French initiated a discussion on the CLG Report, covering October 2022 through September 2023. During this period, there were thirteen HRB meetings, with eight HRB members serving due to a member’s departure and a replacement joining. HRB members and staff attended various trainings, which were individually reported. She mentioned that she would attach a list of properties previously deemed ‘potentially eligible’ that were professionally evaluated for eligibility for the California Register during the reporting period. The report, found on page 39 of the packet, includes these details. She also mentioned that the Office of Historic Preservation would provide feedback on any draft changes to the historic ordinance. Chair Eagleston-Cieslewicz noted that all of her trainings were through the California Association of Museums Annual Conference. The Palo Alto Art Center was a moderator for one of the panel discussions, but it was all through the Annual Conference. Ms. French acknowledged this and agreed to make the necessary adjustment. Vice Chair Rohman mentioned her participation in the Secretary of Interior Standards Bootcamp organized by the California Preservation Foundation. Ms. French replied requested the details and agreed to make the appropriate adjustments. Vice Chair Rohman agreed to provide the information via email and inquired about including her degree courses. Ms. French welcomed this addition. Board Member Willis suggested an edit on page 142 of the membership section to include professional titles, such as “H. Caroline Willis, Architect” and the same for Board Member Heinrich. Ms. French agreed to the adjustment and confirmed that she would initiate contact with Board Member Heinrich. Board Member Questions, Comments, Announcements or Future Meetings and Agendas Ms. French informed the Board of an upcoming meeting scheduled for April 22, 2024, and assured them that she would forward the details once they were published. Board Member Willis shared that the Palo Alto Stanford Heritage (PAST) will resume tours starting in May. Some of the scheduled tours include Stanford’s Palo Alto on May 11th, Upper College Terrace on May 18th, University Avenue on May 25th, and Greenmeadow on June 1st. Ms. French mentioned that the PAST website can be accessed via the City website. Adjournment MOTION Motion by Chair Eagleston-Cieslewicz to adjourn. Seconded by Board Member Pease, the motion carried unanimously by voice vote. The meeting was adjourned at 9:57 a.m. Item 4 Attachment A - HRB 4.11 Minutes     Packet Pg. 38     City of Palo Alto Page 8 Item 4 Attachment A - HRB 4.11 Minutes     Packet Pg. 39