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HomeMy WebLinkAbout2018-03-14 Planning & transportation commission Agenda Packet_______________________ 1. 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. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Planning & Transportation Commission Special Meeting Agenda: March 14, 2018 Council Chambers 250 Hamilton Avenue 5:30 PM Call to Order / Roll Call Oral Communications The public may speak to any item not on the agenda. Three (3) minutes per speaker.1,2 Agenda Changes, Additions, and Deletions The Chair or Commission majority may modify the agenda order to improve meeting management. City Official Reports 1. Assistant Directors Report, Meeting Schedule and Assignments Action Items Public Comment is Permitted. Applicants/Appellant Teams: Fifteen (15) minutes, plus three (3) minutes rebuttal. All others: Five (5) minutes per speaker.1,3 2. PUBLIC HEARING: Recommendation to the City Council Regarding the Adoption of an Ordinance Amending Palo Alto Municipal Code (PAMC) Title 18 (Zoning) to Add a New Chapter 18.30(K) (Affordable Housing Combining District) to Promote the Development of 100% Affordable Housing Projects Located Within One-Half Mile of a Major Transit Stop or High-Quality Transit Corridor, by Providing Flexible Development Standards and Modifying the Uses Allowed in the Commercial Districts and Subdistricts. CEQA: This Ordinance is Within the Scope of the Comprehensive Plan Environmental Impact Report (EIR) Certified and Adopted on November 13, 2017 by Council Resolution Nos. 9720 and 9721. For More Information Contact Graham Owen at Graham.Owen@cityofpaloalto.org. (Continued from February 14, 2018) Study Session Public Comment is Permitted. Five (5) minutes per speaker.1,3 _______________________ 1. 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. 2.The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3.The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. 3.Schedule and Approach for the Planning & Transportation Commission's Input and Recommendations Regarding Items in the February 2018 Housing Work Plan Referred to the Commission by the City Council Approval of Minutes Public Comment is Permitted. Five (5) minutes per speaker.1,3 4.January 31, 2018 Draft Planning & Transportation Commission Meeting Minutes Committee Items Commissioner Questions, Comments, Announcements or Future Agenda Items Adjournment January 31, 2018 Draft Meeting Minutes _______________________ 1. 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. 2. The Chair may limit Oral Communications to 30 minutes for all combined speakers. 3. The Chair may reduce the allowed time to speak to three minutes to accommodate a larger number of speakers. Palo Alto Planning & Transportation Commission Commissioner Biographies, Present and Archived Agendas and Reports are available online: http://www.cityofpaloalto.org/gov/boards/ptc/default.asp. The PTC Commission members are: Chair Ed Lauing Vice Chair Susan Monk Commissioner Michael Alcheck Commissioner Przemek Gardias Commissioner William Riggs Commissioner Doria Summa Commissioner Asher Waldfogel Get Informed and Be Engaged! View online: http://midpenmedia.org/category/government/city-of-palo-alto/ or on Channel 26. Show up and speak. Public comment is encouraged. Please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Commission Secretary prior to discussion of the item. Write to us. Email the PTC at: Planning.Commission@CityofPaloAlto.org. Letters can be delivered to the Planning & Community Environment Department, 5th floor, City Hall, 250 Hamilton Avenue, Palo Alto, CA 94301. Comments received by 2:00 PM two Tuesdays preceding the meeting date will be included in the agenda packet. Comments received afterward through 2:00 PM the day of the meeting will be presented to the Commission at the dais. Material related to an item on this agenda submitted to the PTC after distribution of the agenda packet is available for public inspection at the address above. 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. Planning & Transportation Commission Staff Report (ID # 8787) Report Type: City Official Reports Meeting Date: 3/14/2018 City of Palo Alto Planning & Community Environment 250 Hamilton Avenue Palo Alto, CA 94301 (650) 329-2442 Summary Title: City Official Report Title: Assistant Directors Report, Meeting Schedule and Assignments From: Hillary Gitelman Recommendation Staff recommends that the Planning and Transportation Commission (PTC) review and comment as appropriate. Background This document includes the following items:  PTC Meeting Schedule  PTC Representative to City Council (Rotational Assignments)  Tentative Future Agenda Commissioners are encouraged to contact Yolanda Cervantes (Yolanda.Cervantes@CityofPaloAlto.org) of any planned absences one month in advance, if possible, to ensure availability of a PTC quorum. PTC Representative to City Council is a rotational assignment where the designated commissioner represents the PTC’s affirmative and dissenting perspectives to Council for quasi- judicial and legislative matters. Representatives are encouraged to review the City Council agendas (http://www.cityofpaloalto.org/gov/agendas/council.asp) for the months of their respective assignments to verify if attendance is needed or contact staff. Prior PTC meetings are available online at http://midpenmedia.org/category/government/city-of-palo-alto/boards- and-commissions/planning-and-transportation-commission. The Tentative Future Agenda provides a summary of upcoming projects or discussion items. Attachments:  Attachment A March 14, 2018 PTC Meeting Schedule & Assignments (DOCX) Draft Planning & Transportation Commission 2018 Meeting Schedule & Assignments 2018 Schedule Meeting Dates Time Location Status Planned Absences 1/10/2018 6:00 PM Council Chambers Regular Riggs, Waldfogel 1/17/2018 6:00 PM Council Chambers Special 1/31/2018 6:00 PM Council Chambers Regular 2/14/2018 6:00 PM Council Chambers Regular 2/28/2018 6:00 PM Council Chambers Regular Cancelled 3/14/2018 6:00 PM Council Chambers Special 3/28/2018 6:00 PM Council Chambers Regular 4/11/2018 6:00 PM Council Chambers Regular 4/25/2018 6:00 PM Council Chambers Regular 5/09/2018 6:00 PM Council Chambers Regular Riggs 5/30/2018 6:00PM Council Chambers Regular 6/13/2018 6:00 PM Council Chambers Regular Riggs 6/27/2018 6:00 PM Council Chambers Regular 7/11/2018 6:00 PM Council Chambers Regular 7/25/2018 6:00 PM Council Chambers Regular 8/08/2018 6:00 PM Council Chambers Regular 8/29/2018 6:00 PM Council Chambers Regular 9/12/2018 6:00 PM Council Chambers Regular 9/26/2018 6:00 PM Council Chambers Regular 10/10/2018 6:00 PM Council Chambers Regular 10/31/2018 6:00 PM Council Chambers Regular Riggs 11/14/2018 6:00 PM Council Chambers Regular 11/28/2018 6:00 PM Council Chambers Regular 12/12/2018 6:00 PM Council Chambers Regular 12/26/2018 6:00 PM Council Chambers CANCELLED 2018 Assignments - Council Representation (primary/backup) January February March April May June Ed Lauing Susan Monk Doria Summa Przemek Gardias Michael Alcheck Billy Riggs Asher Waldfogel Michael Alcheck Przemek Gardias Susan Monk Ed Lauing Doria Summa July August September October November December Asher Waldfogel Ed Lauing Przemek Gardias Susan Monk Michael Alcheck Asher Waldfogel Billy Riggs Michael Alchek Asher Waldfogel Doria Summa Przemek Gardias Ed Lauing Subcommittees Draft Planning & Transportation Commission 2018 Tentative Future Agenda February 7, 2018, 2018, 2018 Draft-All Dates and Topics Subject to Change The Following Items are Tentative and Subject to Change: Meeting Dates Topics March 28, 2018  3255 El Camino Real Vesting Tentative Map  305 N. California Ave First Baptist Church  Study Session on Traffic Safety and Operations Annual Report  ADU Ordinance Revisions April 11, 2018  Study Session: StreetLight Data Trip Visualization Tool  2017 Housing Element HCD Report April 25, 2018  Downtown Parking Management Study Phasing Plan May 9, 2018  Review of 2019-2023 CIP for Comprehensive Plan Consistency Planning & Transportation Commission Staff Report (ID # 9002) Report Type: Action Items Meeting Date: 3/14/2018 City of Palo Alto Planning & Community Environment 250 Hamilton Avenue Palo Alto, CA 94301 (650) 329-2442 Summary Title: Affordable Housing (AH) Combining District Draft Ordinance Title: PUBLIC HEARING: Recommendation to the City Council Regarding the Adoption of an Ordinance Amending Palo Alto Municipal Code (PAMC) Title 18 (Zoning) to Add a New Chapter 18.30(K) (Affordable Housing Combining District) to Promote the Development of 100% Affordable Housing Projects Located Within One-Half Mile of a Major Transit Stop or High-Quality Transit Corridor, by Providing Flexible Development Standards and Modifying the Uses Allowed in the Commercial Districts and Subdistricts. CEQA: This Ordinance is Within the Scope of the Comprehensive Plan Environmental Impact Report (EIR) Certified and Adopted on November 13, 2017 by Council Resolution Nos. 9720 and 9721. For More Information Contact Graham Owen at Graham.Owen@cityofpaloalto.org. (Continued from February 14, 2018) From: Hillary Gitelman Recommendation Staff recommends the Planning and Transportation Commission (PTC) take the following action(s): 1. Find the proposed draft ordinance within the scope of the Comprehensive Plan Environmental Impact Report (EIR) certified and adopted on November 13, 2017 by Council Resolution Nos. 9720 and 9721; and 2. Recommend to the City Council adoption of an ordinance (Attachment A) amending Chapter 18.30 of Title 18 of the Municipal Code to add a new chapter establishing an Affordable Housing (AH) Combining District and related regulations. Background City of Palo Alto Planning & Community Environment Department Page 2 On February 14, 2018, the PTC held a public hearing on the subject ordinance. A video recording of the meeting is available online: https://youtu.be/58DuloYevNs?t=3694. The accompanying staff report is also available online: https://www.cityofpaloalto.org/civicax/filebank/documents/63360. The PTC formed an ad hoc committee to discuss the ordinance and present a recommendation for the PTC’s consideration. The ad hoc included Commissioners Gardias, Summa, and Waldfogel; their recommendation was forwarded to staff on March 6, 2018 and is included in this report as Attachment B. Based on the PTC deliberation on February 14th and input from the ad hoc committee, staff made some adjustments to the proposed ordinance. These changes are presented in Attachment A and the new edits are shown in a strikeout/underline format. The changes respond to some commissioner comments regarding high quality transit corridors/boundaries, qualifying housing affordability income levels, parking, and transitional height limits. More specifically, the proposed changes modify the number of eligible properties slightly by limiting qualifying project sites to within one-half mile of a major transit stop or quarter mile from a high-quality transit corridor. Previously the ordinance included properties within a half mile from a high-quality transit corridor. Parking was increased from .5 spaces per unit to .5 spaces per unit or bedroom, whichever is greater. The definition of an 100% affordable housing project was modified to restrict eligible projects to those rented at 60% the area median income level for Santa Clara County, or lower. This change corresponds with comments from a representative of Palo Alto Housing that their projects typically limit income levels to this threshold to qualify for federal income tax credits. A transitional height limit was added to the ordinance limiting the height of any qualifying building or structure within 50 feet of a residential property (RM-30 or lower density) to 35 feet in height, compared to the 50-foot standard previously proposed. The daylight plane requirement remains and is unchanged. None of the proposed changes are believed to impact the potential future filing of an application for a 100% affordable housing project near Wilton Avenue and El Camino Real. The ad hoc committee reports having conducted a series of interviews with affordable housing providers, market rate developers and community members, and having documented several observations that help them form the seven recommendations included in their letter. Principally, the ad hoc recommends the future Palo Alto Housing project discussed in the context of this ordinance be pursued through a development agreement, separate and apart from the proposed ordinance. Such an approach, suggests the ad hoc, would better inform the regulatory requirements of the subject ordinance. This concept was explored with the City Council in September 2017, but was framed using the Planned Community process. It is unclear if the ad hoc is recommending the Planned Community approach. However, any development City of Palo Alto Planning & Community Environment Department Page 3 agreement would 1) require the mutual agreement of the city and the applicant, and 2) still require a legislative change to adjust the underlying zoning for the property. The ad hoc’s second recommendation to adjust the qualifying affordable income levels to 60% of the county’s annual median income has been incorporated into the revised ordinance. Another ad hoc recommendation regarding transitional height limits has been included, however, the staff recommended approach extends to fewer properties than the ad hoc’s recommendation. Other ad hoc recommendations offer perspectives on the retail preservation waiver, parking, and open space, which are not addressed in the attached ordinance. Many of these concepts represent significant policy changes and may require city funds to implement. Staff recommends these concepts, if supported by a majority of the commission, be advanced to the city council for its consideration, but that the draft ordinance be transmitted to the city council in its current form with a commission recommendation at the March 14th meeting. Environmental Review The subject project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the environmental regulations of the City. Specifically, the project is consistent with and implements several policies and programs previously reviewed in the Environmental Impact Report (EIR) for the Comprehensive Plan Update, which was certified and adopted on November 13, 2017 by Council Resolution Nos. 9720 and 9721. No additional environmental analysis is warranted at this time. All future development that may be impacted by the proposed Code change will be subject to a project specific CEQA analysis as part of the required planning entitlement review (e.g. Rezoning, Architectural Review, Subdivision, etc.) to determine if there are any environmental impacts. Alternative Actions In addition to the recommended action, the Planning and Transportation Commission may: 1. Recommend approval of the draft ordinance with modifications; 2. Continue the ordinance to a date (un)certain; or 3. Recommend denial of the draft ordinance. Report Author & Contact Information PTC1 Liaison & Contact Information Graham Owen, Associate Planner Jonathan Lait, AICP, Assistant Director (650) 329-2552 (650) 329-2679 graham.owen@cityofpaloalto.org jonathan.lait@cityofpaloalto.org 1 Emails may be sent directly to the PTC using the following address: planning.commission@cityofpaloalto.org City of Palo Alto Planning & Community Environment Department Page 4 Attachments:  Attachment A: AH Combining District Regulations Ordinance (PDF)  Attachment B: Ad Hoc AH Committee Memo (DOCX) Not Yet Adopted 180206 SL/PCE Planning/AH Combining District Page 1 of 5 Ordinance No. ____ Ordinance of the Council of the City of Palo Alto Amending Chapter 18.30 of Title 18 (Zoning) of the Palo Alto Municipal Code to Add a New Chapter 18.30(K), Affordable Housing (AH) Combining District Regulations The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Chapter 18.30 (Combining Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended to add Section 18.30(K) as follows: New Chapter 18.30(K) AFFORDABLE HOUSING (AH) COMBINING DISTRICT REGULATIONS Sections: 18.30(K).010 Specific Purpose 18.30(K).020 Applicability of Regulations 18.30(K).030 Definitions 18.30(K).040 Zoning Map Designation 18.30(K).050 Site Development Review Process 18.30(K).060 Conformance to Other Combining Districts and Retail Preservation 18.30(K).070 Permitted Uses 18.30(K).080 Conditional Uses 18.30(K).090 Development Standards 18.30(K).010 Specific Purpose The affordable housing combining district is intended to promote the development of 100% affordable housing projects located within one-half mile of a major transit stop or one-quarter mile of a high- quality transit corridor, as defined in subdivision (b) of Section 21155 of the Public Resources Code, by providing flexible development standards and modifying the uses allowed in the commercial districts and subdistricts. 18.30(K).020 Applicability of Regulations (a) The affordable housing combining district may be combined with the CD, CN, CS, and CC districts set forth in Chapters 18.16 and 18.18 of this Title, in accord with the Chapter 18.08 and Chapter 18.80. Where so combined, the regulations established by this Chapter shall apply for 100% affordable housing projects in lieu of the uses allowed and development standards and procedures applied in the underlying district. A property owner may elect to use the site consistent with the underlying district, in which case the applicable regulations in Chapter 18.16 and 18.18 for the commercial districts shall apply. (b) The affordable housing combining district provides flexibility in development standards that allow for a density increase that would in most cases exceed density bonuses under state law, Not Yet Adopted 180206 SL/PCE Planning/AH Combining District Page 2 of 5 Government Code Section 65915. Therefore, a project applicant may utilize the affordable housing combining district and the provisions of this Chapter as an alternative to use of the state density bonus law implemented through Chapter 18.15 (Density Bonus) of this Title, but may not utilize both the affordable housing combining district and density bonuses. If an applicant utilizes state density bonus law, the regulations in Chapter 18.16 or 18.18 for the applicable underlying commercial district shall apply. 18.30(K).030 Definitions For purposes of this Chapter, the following definitions shall apply. (a) “100% affordable housing project” means a multiple-family housing project consisting entirely of Affordable Units, as defined in Section 16.65.020(f) of this code, and available only to households with income levels at or below 60 percent of the area median income for Santa Clara County. 18.30(K).040 Zoning Map Designation The affordable housing combining district shall apply to properties designated on the zoning map by the symbol “AH” within parentheses, following the commercial designation with which it is combined. 18.30(K).050 Site Development Review Process All projects shall be subject to architectural review as provided in Section 18.76.020 and shall not be subject to the requirements of site and design review in Chapter 18.30(G). 18.30(K).060 Conformance to Other Combining Districts and Retail Preservation The following requirements shall apply to projects in the AH affordable housing combining district: (a) Where applicable, the requirements of Chapter 18.30(A) (Retail Shopping (R) Combining District Regulations), Chapter 18.30(B) (Pedestrian Shopping (P) Combining District Regulations), and Chapter 18.30(C) (Ground Floor (GF) Combining District Regulations), and Pedestrian Shopping (P) Combining Districts shall apply. (b) Where applicable, the retail preservation requirements of Section 18.40.180 shall apply except as provided below. i. Waivers and Adjustments Except in the R or GF combining districts, the City Council shall have the authority to reduce or waive the amount of retail or retail like gross floor area required in Section 18.40.180 for any 100% affordable housing project if the City Council determines that it would be in the public interest. Any such reduction or waiver shall not be subject to the waiver and adjustments requirements in Section 18.40.180(c). In the R and GF combining districts, any reduction or waiver in retail or retail like gross floor area shall remain subject to the requirements of Section 18.40.180(c) or the combining district as applicable. 18.30(K).070 Permitted Uses The following uses shall be permitted in the AH affordable housing combining district: (a) 100% affordable housing projects; Not Yet Adopted 180206 SL/PCE Planning/AH Combining District Page 3 of 5 (b) In conjunction with a 100% affordable housing project, any uses permitted in the underlying district, provided the uses are limited to the ground floor. 18.30(K).080 Conditional Uses The following uses may be permitted in the AH affordable housing combining district in conjunction with an 100% affordable housing project, subject to issuance of a conditional use permit in accord with Chapter 18.76 (Permits and Approvals), provided that the uses are limited to the ground floor: (a) Business or trade school. (b) Adult day care home. (c) Office less than 5,000 square feet when deed-restricted for use by a not-for-profit organization. (d) All other uses conditionally permitted in the applicable underlying zoning district. 18.30(K).090 Development Standards The following development standards shall apply to projects subject to the AH affordable housing combining district in lieu of the development standards for the underlying zoning district, except where noted below: Table 1 Development Standards AH Combining District(1) Minimum Site Specifications Subject to regulations in: Site Area (ft 2 ) None required Site Width (ft) Site Depth (ft) Minimum Setbacks Setback lines imposed by a special setback map pursuant to Chapter 20.08 of this code may apply Front Yard (ft) Same as underlying district Rear Yard (ft) Same as underlying district Rear Yard abutting residential zoning district (ft) Same as underlying district Interior Side Yard if abutting residential zoning district (ft) Same as underlying district Street Side Yard (ft) Same as underlying district Build-to-Lines Same as underlying district Permitted Setback Encroachments Same as underlying district Maximum Site Coverage None Required Landscape/Open Space Coverage 20%(2) Not Yet Adopted 180206 SL/PCE Planning/AH Combining District Page 4 of 5 Notes: (1) These developments shall be designed and constructed in compliance with the performance criteria outlined in Chapter 18.23, as well as the context-based design criteria outlined in Section 18.13.060 for residential-only projects, Section 18.16.090 for mixed use projects in the CN, CC, and CS districts, and Section 18.18.110 for mixed use projects in the CD district, provided that more restrictive regulations may be recommended by the architectural review board and approved by the director of planning and community environment, pursuant to Section 18.76.020. (2) Landscape coverage is the total area of the site covered with landscaping as defined in Chapter 18.04. For the purposes of this Chapter 18.30(K), areas provided for usable open space may be counted Usable Open Space 25 sq ft per unit for 5 or fewer units (2), 50 sq ft per unit for 6 units or more (2) Maximum Height (ft) 50’ Within 50 ft of a R1, R-2, RMD, RM-15, or RM-30 zoned property 35’ Daylight Plane for lot lines abutting one or more residential zoning districts Daylight plane height and slope shall be identical to those of the most restrictive residential zoning district abutting the lot line Maximum Residential Density (net) None Required Maximum Residential Floor Area Ratio (FAR) – Residential Portion of a Project 2.0:1 Maximum Non-Residential FAR 0.4:1 Vehicle Parking 0.5 per bedroom or unit, whichever is greater. The Director may modify this standard based on findings from a parking study that show fewer spaces are needed for the project. The required parking ratio for special needs housing units, as defined in Section 51312 of the Health and Safety Code shall not exceed 0.3 spaces per unit. Adjustments to the required ratios shall be considered per Chapter 18.52 (Parking). For Commercial Uses, See Chapters 18.52 and 18.54 (Parking). TDM Plan A transportation demand management (TDM) plan shall be required pursuant to Section 18.52.050(d) and associated administrative guidelines 18.52.050(d) Not Yet Adopted 180206 SL/PCE Planning/AH Combining District Page 5 of 5 towards the landscape site coverage requirement. Landscape and open space areas may be located on or above the ground level, and may include balconies, terraces, and rooftop gardens. SECTION 2. 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 3. 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 4. The City Council finds that the environmental impacts of this Ordinance were disclosed, analyzed and evaluated as part of that certain Final Environmental Impact Report for the Comprehensive Plan Update considered and certified by the City Council on November 13, 2017, by Resolution Nos. 9720 and 9721 (“EIR”). The City Council considered the EIR prior to taking action on this Ordinance, in conformance with the California Environmental Quality Act (“CEQA”), together with state and local regulations implementing CEQA. SECTION 5. This ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ _____________________________ Deputy City Attorney City Manager _____________________________ Director of Planning and Community Environment Ad Hoc Affordable Housing Overlay Committee: Przemek Gardias, Doria Summa, Asher Waldfogel Through a series of interviews over a very short period of time with affordable housing providers, market rate developers and community members we have observed that: 1. Affordable housing development below 60% AMI and above 60% AMI are in different financing markets, have different financial hurdles and metrics and need different solutions. 2. Under 60% AMI projects must cost under $500K per door to compete for limited tax-credit financing. 3. Affordable housing providers believe they do not need to provide parking above .5 spaces/unit, but cities may finance additional parking based on demand studies. 4. Actual parking demand in affordable units is between .5 and 1.3 spaces per unit in Palo Alto. Parking standards need to meet actual demand. 5. Retail space does not qualify for tax-credit financing. 6. Affordable housing projects that retain retail will need additional sources of funding and/or zoning concessions. 7. Existing PAMC development transitional height standards limit building heights to 35 feet within 150 feet of residential districts. This is a concern, particularly along the El Camino Corridor. 8. Affordable housing providers want more certainty in the development process. A general process that requires site-specific zoning changes does not meet their needs. Here are our recommendations: RECOMMENDATION 1: We recommend the City pursue a development agreement with PAH to advance the Wilton Court project. We believe a serious negotiation over the Wilton Court project will inform how to write a better city-wide ordinance. RECOMMENDATION 2: We recommend separating affordable housing into two work items: under 60% AMI (AH60) and 60% to 120% AMI (AH120). RECOMMENDATION 3: For AH60 we recommend the following options for retail preservation I. Where retail is retained, offer a zoning (height) concession. II. Where affordable housing provider financing precludes retail: City or a 3rd party may participate in project financing, potentially in exchange for an ownership position. III. As a last resort, City may waive the retail requirement as provided by the retail preservation ordinance. RECOMMENDATION 4: For AH60 we recommend City financial contributions to develop parking to meet demand based on measured parking utilization rates of comparable properties. The City may exercise an option to build additional parking available to the public. RECOMMENDATION 5: We recommend maintaining the transition height standards in all the C districts adjacent to residential districts. We recommend a community process with outreach before changing transition heights for AH60 housing. RECOMMENDATION 6: We recommend an open space standard for AH60, but we recommend against roof gardens adjacent to low density residential districts. RECOMMENDATION 7: We recommend folding AH120 work into the Housing Workplan effort. The regional consensus is to accomplish AH120 with inclusionary standards. We are not in a position today to make a recommendation on the right inclusionary standard. Planning & Transportation Commission Staff Report (ID # 9019) Report Type: Study Session Meeting Date: 3/14/2018 City of Palo Alto Planning & Community Environment 250 Hamilton Avenue Palo Alto, CA 94301 (650) 329-2442 Summary Title: Discussion of 2018 Housing Work Plan Items Referred to the Commission Title: Schedule and Approach for the Planning & Transportation Commission's Input and Recommendations Regarding Items in the February 2018 Housing Work Plan Referred to the Commission by the City Council From: Hillary Gitelman Recommendation Staff recommends the Planning and Transportation Commission (PTC): 1. Receive a presentation summarizing the February 2018 Draft Housing Work Plan reviewed by the City Council on February 12, 2018, focusing on those items referred to the PTC for input and recommendations, and 2. Review the proposed timeline in Table 3, below, and provide feedback on needed adjustments, respecting the Council’s desire to consider adoption of an ordinance this calendar year amending zoning standards to encourage production of a diversity of housing types in appropriate locations. Executive Summary As part of the City Council’s February 12, 2018 action on the Draft Housing Work Plan, the Council directed staff to prepare an ordinance amending the zoning code to encourage production of a diversity of housing types in appropriate locations and referred the ordinance to the PTC for input and recommendation(s) with the expectation that the ordinance would be returned to the Council for their consideration later in 2018. The Council also requested that staff hold a community meeting for public discussion of the draft ordinance, and provided additional direction on the content of the ordinance and other complementary endeavors from the Draft Housing Work Plan. The Council’s motion is included as Attachment A. Table 3, below, suggests a timeline for preparation and review of the 2018 ordinance, and is presented here for the PTC’s consideration this evening. The timeline anticipates an City of Palo Alto Planning & Community Environment Department Page 2 opportunity for the PTC to provide feedback on options for zoning changes along the lines suggested by the City Council over a series of four meetings, followed by two meetings that would be focused on review of a draft ordinance to accomplish the Council’s objective(s). Given the community-wide importance of this effort, staff recommends that the PTC meet as a whole, rather than utilizing a subcommittee. Background Staff prepared the February 2018 Draft Housing Work Plan for calendar years 2018 and 2019 in response to a November 6, 2017 City Council Colleagues’ Memo asking staff to outline the process and resources to study and implement various housing proposals. The Draft Housing Work Plan serves as the implementation program for the City’s vision and adopted policies and programs for housing production, affordability, and preservation. It consolidates the following efforts:  City Council Colleagues’ Memo: On November 6, 2017, the City Council stated their desire for zoning updates to encourage diverse housing near jobs, transit, and services, including increasing densities and reducing parking constraints.  Adopted Housing Element: On November 10, 2014, the City Council adopted the 2015- 2023 Housing Element, which identifies housing needs and a series of policies and programs to address these needs for all income levels and populations (i.e., special needs households).  Adopted Comprehensive Plan: on November 13, 2017, the City Council adopted a new Comprehensive Plan, including a Land Use Element that includes a range of policies and programs designed to complement the Housing Element by addressing housing-related issues such as increasing residential densities, removing constraints to housing production, protections for existing units, and appropriate locations for new housing. The February 2018 Draft Housing Work Plan specifies actions in five areas over the next two years, with item #2 (in bold) representing the main focus of this staff report and the PTC’s efforts this year: 1. Complete ongoing projects and initiatives designed to stimulate the production of affordable and workforce housing; 2. Develop and adopt one or more zoning amendment ordinance(s) with provisions designed to encourage production of a diversity of housing types in appropriate locations; 3. Prepare the economic analyses necessary to consider increasing inclusionary requirements from 15% to 20% for new development, applying inclusionary requirements to new rental housing, and requiring payment of in-lieu fees or off-site replacement if existing units are removed from the housing stock resulting in a net loss of units; City of Palo Alto Planning & Community Environment Department Page 3 4. Use the City’s affordable housing funds to stimulate the rehabilitation and development of new affordable housing; and 5. Partner with other agencies and organizations to meet the needs of underserved members of our community and to engage in community conversations about the use of publicly-owned land for affordable housing. On February 5 and 12, 2018, the City Council discussed, took public comment on, and unanimously approved a motion embracing the components of the Draft Housing Work Plan. The Council Staff Report, including a link to the draft Work Plan may be found here: https://www.cityofpaloalto.org/civicax/filebank/documents/63054. The Council’s adopted motion can be found in Attachment A. As part of their action, the Council referred Items 2.1 through 2.6 of the Draft Housing Work Plan to the PTC for input and a recommendation for consideration by the City Council. These work plan items are presented below in the first column of the table below, with comments and changes made by the City Council in the course of their review in the second column. Table 1. Draft Housing Work Plan Items 2.1 through 2.6 with Comments & Council Changes Work Plan Items Referred for PTC Input and Recommendation Comments and Additions 2.1 Identify “By Right” Procedures for Implementation of SB35 The urgency for these items is less than expected because of the State’s determination of agencies subject to SB35; staff will be taking this up after the ordinance regarding items 2.4 through 2.6. 2.2 Strengthen objective standards in the zoning ordinance applicable to all multifamily housing projects to aid implementation of SB 35. 2.3 Consider Comprehensive Plan and SOFA Coordinated Area Plan changes to strengthen objectives standards applicable to all multifamily housing projects to aid implementation of SB 35. 2.4 Provide incentives and remove constraints for multifamily housing in the Downtown (CD-C), Cal Ave (CC(2)/PTOC), and El Camino Real (CN and CS) districts, including: 2.4.1 Review and revise development standards (e.g. landscaping, open space) 2.4.2. Consider eliminating dwelling unit densities and relying on FAR and average unit sizes 2.4.3 Review and revise permitted uses and use mix (e.g. allow 100% residential w/ground floor retail) 2.4.4 Review and revise level of permitting and plan review required The Council added the following items to the list on the left:  Increase Floor Area Ratio (FAR) in the Downtown, California Avenue, and El Camino Real areas; and  Explore excluding underground Floor Area Ratio (FAR) from parking requirements (The discussion was about allowing underground parking in R-1 districts without counting it towards FAR.) City of Palo Alto Planning & Community Environment Department Page 4 Work Plan Items Referred for PTC Input and Recommendation Comments and Additions 2.4.5 Allow parking reductions based on TDM plans and on payment of parking in lieu fees for housing (Downtown and Cal Ave) 2.4.6 Convert some non-residential FAR to residential FAR 2.4.7 Remove constraints to special needs housing 2.5 Support multifamily housing in the multifamily (RM) zoning districts by: 2.5.1 Consider establishment of minimum densities in all RM zones 2.5.2 Allow redevelopment (replacement) of existing residential units on sites that are nonconforming because of the number of units or FAR 2.6 Provide incentives and remove constraints in all zoning districts, including: 2.6.1 Adjustment to parking requirements to reduce costs (based on an ongoing study of parking demand by housing type and location) Council qualified this item and item 2.4.5 (above) by also directing staff and the PTC:  to identify the appropriate amount of parking for various housing types and locations, taking into account parking mitigations; and  to update the Transportation Demand Management Ordinance and to the extent that it does not already include metrics of measurements, accomplishments, and enforcement, include these metrics. Source: Palo Alto Planning & Community Environment, March 2018 An ordinance addressing items 2.4 through 2.6 above would include zoning changes primarily in the Downtown, California Avenue, and El Camino zoning districts (i.e., CD-2, CC(2)/PTOD, CN, and CS). Although reductions in parking ratios will be considered citywide, minimum densities and non-conforming provisions will be considered in the RM zones, and an item about underground parking was suggested for inclusion in the R1 (single family residential) zone. The summary in Table 2 below groups ordinance items by “key issue” and may provide a useful organizational structure for the PTC’s discussions. City of Palo Alto Planning & Community Environment Department Page 5 Table 2: 2018 Comp Plan and Housing Production Ordinance, by District and Key Issue Key Issue Downtown (CD-C), Cal Ave., (CC(2)/PTOD), and El Camino Real (CN and CS) Zoning Districts RM Districts All Zoning Districts Remove Development Constraints  Review and revise development standards (e.g., landscaping, open space)  Remove constraints to special needs housing in particular (based on Housing Element Program H4.2.1)  Review and revise permitted uses and use mix (e.g., allow 100% residential w/retail) n/a  Adjust parking requirements to reduce costs (based on parking study); identify the appropriate amount of parking for various housing types and locations, taking into account parking mitigations (1) Residential Density Changes  Consider eliminating dwelling unit densities and relying on FAR and average unit sizes  Convert some non-residential FAR to residential FAR  Increase housing FAR in the Downtown, Cal Ave, and El Camino Real areas  Consider establishment of minimum densities n/a Provide Flexibility  Allow parking reductions based on TDM plans and on payment of parking in-lieu fees for housing (Downtown and Cal Ave.). Update the TDM Ordinance to the extent that it does not already include metrics of measurements, accomplishments, and enforcement; include these metrics  Allow redevelopment (replacement) of existing residential units on sites that are nonconforming because of the number of units or FAR n/a Streamline Processes  Review and revise level of permitting and site plan review required n/a n/a Note: (1) Council also requested exploration of excluding underground Floor Area Ratio (FAR) from parking requirements (their discussion revolved around R-1 zone districts). The Council motion was not clear about whether this analysis would be part of the 2018 or 2019 ordinance. Staff suggests completing this item in 2019 along with the rest of the revisions to the low- density residential zoning districts. Source: Palo Alto Planning & Community Environment, March 2018 City of Palo Alto Planning & Community Environment Department Page 6 The February 2018 Draft Housing Work Plan and the Council’s motion also address other housing policy implementation items that will be referred to the PTC at a later date. These include items identified for inclusion in a 2019 zoning ordinance amendment, ongoing initiatives that the PTC has already been working on (e.g. an update to the City’s Accessory Dwelling Unit Ordinance), and adjustments to the City’s inclusionary housing program. Discussion Housing development, including the production of affordable units, is constrained in Downtown, California Avenue, and El Camino Real for several reasons:  The value of existing uses and high cost of construction reduce owners’ financial incentive to redevelop  The easier-to-develop larger sites have already been developed; redevelopment on the smaller remaining sites is challenging, unless parcel consolidation can be achieved  Zoning regulations constrain site planning and the density that can be achieved  Some Zoning regulations prioritize non-residential development by allowing higher intensities for offices and hotels compared to residential uses Housing Work Plan items in Table 1 and 2 are intended to lead (indirectly) to housing production by providing allowable residential densities that will encourage site redevelopment and by providing flexibility for property owners, developers, and architects in site planning and massing. Other Housing Work Plan programs, such the North Ventura Coordinated Area Plan and use of the City’s Commercial and Residential Housing Funds, are expected to spur a direct increase in multi-family housing development. Preparation and consideration of a zoning ordinance reflecting items 2.4 through 2.6 in Table 1 will advance implementation of the City’s 2017 Comprehensive Plan and 2014 Housing Element, as well as responding to the Council’s direction on February 12, 2018. Each of the items outlined in Table 1 and Table 2 are either explicitly stated in an adopted Housing Element or Comprehensive Plan program, or supported by their adopted policies. The Housing Element and the Comprehensive Plan both involved a significant amount of community outreach and decision-maker input, and benefited from technical studies and information available during the course of their development. As a result, the City Council’s discussion did not anticipate extensive additional analysis or outreach, although the Council did request staff to hold one public meeting for community questions and comments. Consistent with this discussion and direction, staff anticipates that the current planning effort will include the following additional technical analyses and community outreach: City of Palo Alto Planning & Community Environment Department Page 7  A study (already underway) to analyze parking occupancy rates associated with various housing types and locations that can be used to inform recommended adjustments to parking requirements;  Outreach to individuals or small groups with expertise in developing and/or designing market-rate and affordable housing development to identify constraints and opportunities;  Presentation and analysis of recent projects and opportunity sites, including conceptual site analyses, to inform the Commission’s discussions and assess opportunities and impacts associated with potential zoning changes;  Dissemination of summary materials for public information/input regarding objectives of the proposed ordinance as well as issues and opportunities associated with potential zone changes;  One community workshop for the community at-large to review the draft ordinance framework and provide input and questions; and  Preparation of a draft ordinance for the PTC’s review and noticing of a public hearing. Throughout this process, the PTC will be asked to review and providing feedback on options for the zoning changes requested by Council. Then, the PTC will review and provide input on a draft Ordinance, ultimately making a recommendation to the City Council. The suggested approach/schedule in Table 3 calls for the PTC to make a recommendation to the City Council in September, so the City Council can schedule their first hearing in early November 2018. Table 3: 2018 Comp Plan and Housing Production Ordinance - Work Program and Timeline Task Timeline for Completion PTC Study Session to Review Objectives for Housing Work Plan and City Council Direction March 14, 2018 (Meeting #1) PTC Study Sessions to Review 2018 Zoning Options  Remove Development Constraints  Residential Density Changes  Provide Felxibility & Streamline Processes April 2018 (Meeting #2) May 2018 (Meeting #3) June 2018 (Meeting #4) Community Meeting July 2018 PTC Hearing on Ordinance – Recommendation to Council August 2018 (Meeting #5) September 2018 (Meeting #6) Environmental Review The City Council certified a Final EIR on November 13, 2017 to analyze potential impacts associated with the Comprehensive Plan. The 2018 Ordinance will be evaluated pursuant to the California Environmental Quality Act (CEQA) once a draft is prepared. It is anticipated that the Ordinance will be consistent with the Comprehensive Plan and Final EIR. If needed, an Addendum to the EIR would be prepared to address any new or unaniticpated impacts. At this City of Palo Alto Planning & Community Environment Department Page 8 time, no substantially greater or more severe impacts are anticipated and no development is proposed, beyond what is allowed by the Comprehensive Plan. Next Steps Staff will return to the PTC with issues, options, and recommendations for the 2018 Ordinance in April 2018. Report Author & Contact Information PTC1 Liaison & Contact Information Jean Eisberg, Consultant Planner Jonathan Lait, AICP, Assistant Director (415) 841-3539 (650) 329-2679 jean@lexingtonplanning.com jonathan.lait@cityofpaloalto.org Attachments:  Attachment A: 02-12-18 City Council Action Minutes (PDF) 1 Emails may be sent directly to the PTC using the following address: planning.commission@cityofpaloalto.org CITY OF PALO ALTO CITY COUNCIL ACTION MINUTES Page 1 of 9 Special Meeting February 12 2018 The City Council of the City of Palo Alto met on this date in the Council Chambers at 5:00 P.M. Present: DuBois arrived at 5:03 P.M., Filseth; Fine arrived at 5:03 P.M., Holman arrived at 5:05 P.M., Kniss, Kou, Scharff, Tanaka, Wolbach Absent: Closed Session 1. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his Designees Pursuant to Merit System Rules and Regulations (James Keene, Ed Shikada, Rumi Portillo, Sandra Blanch, Nicholas Raisch, Molly Stump, George Sakai, Terence Howzell, Lalo Perez, Kiely Nose) Employee Organizations: Utilities Management and Professional Association of Palo Alto (UMPAPA); Service Employees’ International Union (SEIU General), Local 521; Palo Alto Peace Officers’ Association (PAPOA); Palo Alto Fire Chiefs’ Association (FCA); International Association of Fire Fighters (IAFF), Local 1319; Palo Alto Police Managers’ Association (PAPMA); and Unrepresented Management, Professional Employees, and Limited Hourly Employees Authority: Government Code Section 54957.6(a). MOTION: Vice Mayor Filseth moved, seconded by Council Member Wolbach to go into Closed Session. MOTION PASSED: 6-0 DuBois, Fine, Holman absent Council went into Closed Session at 5:01 P.M. Council returned from Closed Session at 6:44 P.M. Mayor Kniss announced no reportable action. ACTION MINUTES Page 2 of 9 City Council Meeting Action Minutes: 2/12/18 Special Orders of the Day 2. Proclamation Expressing Appreciation to the Foothill College Paramedic Program for Educating Paramedic Students and Their Support of the City of Palo Alto’s Emergency Medical Services. 3. Recognition of the Palo Alto Science Fair Student Winners. Agenda Changes, Additions and Deletions None. Minutes Approval 4. Approval of Action Minutes for the January 22 and January 29, 2018 Council Meetings. MOTION: Vice Mayor Filseth moved, seconded by Council Member Wolbach to approve the Action Minutes for the January 22 and January 29, 2018 Council Meetings, including changes to the January 29, 2018 minutes as outlined in the At Place Staff Memorandum. MOTION PASSED: 9-0 Consent Calendar MOTION: Council Member Scharff moved, seconded by Vice Mayor Filseth to approve Agenda Item Numbers 5-10. 5. Resolution 9735 Entitled, “Resolution of the Council of the City of Palo Alto Approving and Attesting to the Veracity of the 2016 Annual Power Source Disclosure Report.” 6. Annual Review of the City’s Renewable Procurement Plan, Renewable Portfolio Standard Compliance, and Carbon Neutral Electric Supplies. 7. Review of Fiscal Year 2018 Mid-year Budget and Approval of Budget Amendments in Various Funds. 8. Approval and Authorization for the City Manager to Execute Contract Number C18169608 With Clean Harbors Environmental Services, Inc. for Household Hazardous Waste Management and Emergency Response Services for a Term of Three Years With the Total Not-To- Exceed Amount of $990,000. ACTION MINUTES Page 3 of 9 City Council Meeting Action Minutes: 2/12/18 9. Park Improvement Ordinance 5426 Entitled, “Ordinance of the Council of the City of Palo Alto for Peers Park Dog Off-leash Exercise Area (FIRST READING: January 29, 2018 PASSED: 9-0).” 10. Ordinance 5427 Entitled, “Ordinance of the Council of the City of Palo Alto Amending Section 2.08.120 of Chapter 2.08 and Section 2.30.270 of Chapter 2.30 of Title 2 of the Palo Alto Municipal Code to Update job Titles of Attorneys in the City Attorneys’ Office to Conform With Changes Adopted by Council in the FY 2018 Annual Budget (FIRST READING: January 29, 2018 PASSED: 9-0).” MOTION PASSED: 9-0 Action Items 10A. Review and Accept a Proposed Housing Work Plan for 2018-2019 and Refer Specific Elements to the Planning & Transportation Commission for Preparation of Related Zoning Ordinance(s) (Continued From February 5, 2018). MOTION: Council Member Fine moved, seconded by Council Member Scharff to: A. Direct Staff to: i. Complete ongoing projects and initiatives designed to stimulate the production of affordable and workforce housing; ii. Develop and adopt one or more zoning amendment Ordinances with provisions designed to encourage production of a diversity of housing types in appropriate locations; iii. Prepare the economic analyses necessary to prepare and consider Ordinances increasing inclusionary requirements from 15 percent to 20 percent for new development, applying inclusionary requirements to new rental housing, and requiring payment of in-lieu fees or off-site replacement if existing units are removed from the housing stock resulting in a net loss of units; iv. Use the City’s affordable housing funds to stimulate the rehabilitation and development of new affordable housing; v. Partner with other agencies and organizations to meet the needs of underserved members of our community and to engage in ACTION MINUTES Page 4 of 9 City Council Meeting Action Minutes: 2/12/18 community conversations about the use of publicly-owned land for affordable housing; vi. Add an item to the 2018 Ordinance to increase housing Floor Area Ratio (FAR) in the Downtown, California Avenue, and El Camino Real areas; B. Refer Work Plan Items 2.1 through 2.6 to the Planning and Transportation Commission for input on the preparation of a 2018 Housing Ordinance and a recommendation for consideration by the City Council; and C. Refer Work Plan Items 3.1 through 4.2 to the Policy and Services Committee for input on possible policy changes and on the use of City housing funds. AMENDMENT: Council Member Scharff moved, seconded by Council Member Wolbach to add to the Motion, “Staff to evaluate the correct amount of parking for the number of cars anticipated for a project and not require less parking than needed taking into account parking mitigations.” AMENDMENT RESTATED AND INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “direct Staff and the Planning and Transportation Commission to identify the appropriate amount of parking for various housing types and locations, taking into account parking mitigations.” (New Part D) INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion Part Ai, “include exploring excluding underground Floor Area Ratio (FAR) from parking requirements.” AMENDMENT: Council Member Holman moved, seconded by Council Member DuBois to add to the Motion, “direct Staff to hold a community meeting to allow the public to discuss and ask questions regarding the draft Housing Work Plan.” INCORPORATED INTO THE AMENDMENT WITH THE CONSENT OF THE MAKER AND SECONDER to replace in the Amendment, “Draft Housing Work Plan” with “2018 Housing Ordinance.” AMENDMENT TO THE AMENDMENT: Council Member Wolbach moved, seconded by Council Member XX to replace in the Amendment, “community meeting” with “town hall.” AMENDMENT TO THE AMENDMENT WITHDRAWN BY THE MAKER ACTION MINUTES Page 5 of 9 City Council Meeting Action Minutes: 2/12/18 AMENDMENT RESTATED AND INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “hold a community meeting where the public may discuss and ask questions regarding the draft 2018 Housing Ordinance.” (New Part A.vii.) AMENDMENT: Council Member Holman moved, seconded by Council Member XX to add to the Motion Part A.ii., “with consideration of maximum average unit sizes” after “diversity of housing types.” AMENDMENT WITHDRAWN BY THE MAKER AMENDMENT: Council Member Holman moved, seconded by Council Member XX to replace in the Motion Part A.iii., “20 percent” with “30 percent.” AMENDMENT RESTATED: Council Member Holman moved, seconded by Council Member DuBois to replace in the Motion Part A.iii., “20 percent” with “25 percent.” INCORPORATED INTO THE AMENDMENT WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Amendment after 25 percent, “which will identify the variables, such as height, density, and parking that will allow the higher percentages.” AMENDMENT AS AMENDED RESTATED: Council Member Holman moved, seconded by Council Member DuBois to replace in the Motion Part A.iii., “20 percent” with “25 percent, which will identify the variables, such as height, density, and parking that will allow the higher percentages.” AMENDMENT AS AMENDED PASSED: 6-3 Filseth, Fine, Scharff no AMENDMENT: Council Member Holman moved, seconded by Council Member XX to remove Part A.vi. from the Motion. AMENDMENT FAILED DUE TO THE LACK OF A SECOND AMENDMENT: Council Member Holman moved, seconded by Council Member Kou to add to the Motion, “remove from Work Plan Item 1.7, ‘on Public Facility (PF) zoned parcels.’” AMENDMENT WITHDRAWN BY THE MAKER AMENDMENT: Vice Mayor Filseth moved, seconded by Council Member Scharff to add to the Motion, “remove Work Plan Item 5.1.” (New Part A.viii.) ACTION MINUTES Page 6 of 9 City Council Meeting Action Minutes: 2/12/18 AMENDMENT PASSED: 6-3 Fine, Kniss, Wolbach no AMENDMENT: Council Member Kou moved, seconded by Council Member Holman to add to the Motion, “as part of the 2018 Draft Housing Ordinance, direct Staff and the Planning and Transportation Commission to draft a Transportation Demand Management agreement that includes metrics of measurements, accomplishments, and enforcement.” AMENDMENT RESTATED: Council Member Kou moved, seconded by Council Member Holman to add to the Motion, “as part of the 2018 Draft Housing Ordinance, direct Staff and the Planning and Transportation Commission to update the Transportation Demand Management Ordinance to the extent that it does not already include metrics of measurements, accomplishments, and enforcement, to include these metrics.” (New Part E) AMENDMENT AS AMENDED PASSED: 5-4 Fine, Kniss, Tanaka, Wolbach no AMENDMENT: Council Member Kou moved, seconded by Council Member DuBois to add to the Motion, “explore a Recreational Vehicle Park at the Los Altos Water Treatment Plant, including an implementation plan.” INCORPORATED INTO THE AMENDMENT WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Amendment, “at various sites including” after “Recreational Vehicle Park.” AMENDMENT TO THE AMENDMENT: Council Member Wolbach moved, seconded by Council Member XX to replace in the Amendment, “a Recreational Vehicle Park at various sites including at the Los Altos Water Treatment Plant, including an implementation plan” with “additional services for vehicle dwellers.” AMENDMENT TO THE AMENDMENT WITHDRAWN BY THE MAKER AMENDMENT AS AMENDED RESTATED: Council Member Kou moved, seconded by Council Member DuBois to add to the Motion, “explore a Recreational Vehicle Park at various sites including at the Los Altos Water Treatment Plant, including an implementation plan.” AMENDMENT AS AMENDED FAILED: 3-6 DuBois, Holman, Kou yes AMENDMENT: Council Member DuBois moved, seconded by Council Member Kou to add to the Motion, “direct Staff to consider a quantifiable goal of increasing the proportion of affordable housing in our housing stock.” AMENDMENT FAILED: 4-5 DuBois, Filseth, Holman, Kou yes ACTION MINUTES Page 7 of 9 City Council Meeting Action Minutes: 2/12/18 MOTION AS AMENDED RESTATED: Council Member Fine moved, seconded by Council Member Scharff to: A. Direct Staff to: i. Complete ongoing projects and initiatives designed to stimulate the production of affordable and workforce housing; ii. Develop and adopt one or more zoning amendment Ordinances with provisions designed to encourage production of a diversity of housing types in appropriate locations, include exploring excluding underground Floor Area Ratio (FAR) from parking requirements; iii. Prepare the economic analyses necessary to prepare and consider Ordinances increasing inclusionary requirements from 15 percent to 25 percent, which will identify the variables, such as height, density, and parking that will allow the higher percentages for new development, applying inclusionary requirements to new rental housing, and requiring payment of in-lieu fees or off-site replacement if existing units are removed from the housing stock resulting in a net loss of units; iv. Use the City’s affordable housing funds to stimulate the rehabilitation and development of new affordable housing; v. Partner with other agencies and organizations to meet the needs of underserved members of our community and to engage in community conversations about the use of publicly-owned land for affordable housing; vi. Add an item to the 2018 Ordinance to increase housing Floor Area Ratio (FAR) in the Downtown, California Avenue, and El Camino Real areas; vii. Hold a community meeting where the public may discuss and ask questions regarding the draft 2018 Housing Ordinance; viii. Remove Work Plan Item 5.1; B. Refer Work Plan Items 2.1 through 2.6 to the Planning and Transportation Commission for input on the preparation of a 2018 Housing Ordinance and a recommendation for consideration by the City Council; ACTION MINUTES Page 8 of 9 City Council Meeting Action Minutes: 2/12/18 C. Refer Work Plan Items 3.1 through 4.2 to the Policy and Services Committee for input on possible policy changes and on the use of City housing funds; D. Direct Staff and the Planning and Transportation Commission to identify the appropriate amount of parking for various housing types and locations, taking into account parking mitigations; and E. As part of the 2018 Draft Housing Ordinance, direct Staff and the Planning and Transportation Commission to update the Transportation Demand Management Ordinance to the extent that it does not already include metrics of measurements, accomplishments, and enforcement, to include these metrics. MOTION AS AMENDED PASSED: 9-0 11. Adoption of Preliminary Goals and Objectives, Schedule, and Boundaries for the North Ventura Coordinated Area Plan Project; Authorization for the City Manager to Negotiate and Execute a Related Grant Agreement With Caltrans; Direction to Staff Regarding Recruitment of Community Working Group Members; and Approval of a Budget Amendment in the General Fund Reflecting $638,000 in Grant Funding, $250,000 in Matching/Supplemental Private Funding, and Equivalent Expenditures. MOTION: Council Member Holman moved, seconded by Council Member Wolbach to continue this item to a date uncertain, with a preference for the February 26, 2018 meeting. MOTION PASSED: 9-0 12. Resolution 9736 Entitled, “Resolution of the Council of the City of Palo Alto Scheduling the City Council Summer Break and Winter Closure for 2018.” MOTION: Council Member Scharff moved, seconded by Vice Mayor Filseth to adopt a Resolution scheduling the City Council 2018 Summer Break from Tuesday, June 26, 2018 to Friday, August 10, 2018, and Winter Closure from Tuesday, December 18, 2018 to Friday, January 4, 2019. MOTION PASSED: 9-0 Inter-Governmental Legislative Affairs None. ACTION MINUTES Page 9 of 9 City Council Meeting Action Minutes: 2/12/18 Council Member Questions, Comments and Announcements Council Member Kou reported her attendance at the San Francisco Airport Community Roundtable meeting. A discussion of adding a representative from Santa Clara County and Santa Cruz County occurred at the Roundtable. Council Member Scharff recalled that both Santa Clara County and Santa Cruz County will each be granted a member on the Roundtable, however, this change will require amendments to the Roundtable bylaws and adoption by each member agency. He announced that the portion of the Bay Trail over the Friendship Bridge between Palo Alto and East Palo Alto opened today. Council Member DuBois reported his attendance along with other Council Members at the Gunn High School choir and staff musical last week. The event took place at the Palo Alto High School Performing Arts Center. Council Member Wolbach reported that several Council Members and the City’s federal lobbyist met with the Federal Aviation Administration (FAA) while in Washington, D.C. last year. He requested a similar meeting be scheduled this year while Council Members attend the National League of Cities Conference. He reported his attendance at a meeting earlier today with Mountain View Mayor Lenny Siegel, Sunnyvale Council Member Gustav Larsson, and members of the Mountain View Transportation Management Association to discuss additional transportation management collaboration. Adjournment: The meeting was adjourned at 10:57 P.M.