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HomeMy WebLinkAbout2018-08-29 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 two minutes or less to accommodate a larger number of speakers. Planning & Transportation Commission Regular Meeting Agenda: August 29, 2018 Council Chambers 250 Hamilton Avenue 6:00 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: Three (3) minutes per speaker.1,3 2.PUBLIC HEARING / QUASI-JUDICIAL. 3877 El Camino Real [17PLN-00321]: Recommendation on Applicant's Request for Approval of a One Lot Vesting Tentative Map to Divide an Existing 0.75 Acre Parcel into 17 Residential Condominiums and one Commercial Condominium. Environmental Assessment: Mitigated Negative Declaration Adopted by Council on September 18, 2017. Zoning Districts: CS and RM- 30. For More Information, Contact the Project Planner Sheldon Ah Sing at sahsing@m-group.us. Study Session Public Comment is Permitted. Three (3) minutes per speaker.1,3 3.Implementing the Council Housing Work Plan Referral: Framework for the 2018 Comp Plan Implementation and Housing Ordinance Approval of Minutes Public Comment is Permitted. Three (3) 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 two minutes or less to accommodate a larger number of speakers. 4.June 27, 2018 Draft Planning & Transportation Commission Meeting Minutes 5.July 25, 2018 Draft Planning & Transportation Commission Meeting Minutes Committee Items Commissioner Questions, Comments, Announcements or Future Agenda Items Adjournment July 25, 2018 Draft Minutes June 27, 2018 Draft 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 two minutes or less 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 # 9518) Report Type: City Official Reports Meeting Date: 8/29/2018 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: Jonathan Lait 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: August 29, 2018 PTC Meeting Schedule and 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 Regular 3/28/2018 6:00 PM Council Chambers Regular Riggs 4/11/2018 6:00 PM Council Chambers Regular 4/25/2018 6:00 PM Council Chambers Regular Lauing, Riggs 5/09/2018 5/22/2018 6:00 PM 6:00 PM Council Chambers Council Chambers Regular Special Cancelled(Alcheck, Lauing, Monk, Riggs) Alcheck 5/30/2018 6:00PM Council Chambers Regular 6/13/2018 6:00 PM Council Chambers Regular Alcheck, Riggs 6/27/2018 6:00 PM Council Chambers Regular Alcheck 7/11/2018 6:00 PM Council Chambers Regular Cancelled 7/25/2018 6:00 PM Council Chambers Regular Gardias, Riggs 8/08/2018 6:00 PM Council Chambers Regular Cancelled 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 Cancelled 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 Draft Planning & Transportation Commission 2018 Tentative Future Agenda August 13, 2018 Draft-All Dates and Topics Subject to Change The Following Items are Tentative and Subject to Change: Meeting Dates Topics September 12, 2018  Housing Work Plan Ordinance  CEQA Ordinance  PAMC Title 8 Revisions September 26, 2018  Housing Work Plan: Recommendation on Draft Ordinance  874 Boyce Road Preliminary Parcel Map October 10, 2018  TMA Study Session  2018 Comp Plan Implementation/Housing Ordinance  285 Hamilton Ave-Houzz Roof Deck October 31, 2018  Cancelled Planning & Transportation Commission Staff Report (ID # 9356) Report Type: Action Items Meeting Date: 8/29/2018 City of Palo Alto Planning & Community Environment 250 Hamilton Avenue Palo Alto, CA 94301 (650) 329-2442 Summary Title: 3877 El Camino Real: Tentative Condo Map Title: PUBLIC HEARING / QUASI-JUDICIAL. 3877 El Camino Real [17PLN-00321]: Recommendation on Applicant's Request for Approval of a One Lot Vesting Tentative Map to Divide an Existing 0.75 Acre Parcel into 17 Residential Condominiums and one Commercial Condominium. Environmental Assessment: Mitigated Negative Declaration Adopted by Council on September 18, 2017. Zoning Districts: CS and RM- 30. For More Information, Contact the Project Planner Sheldon Ah Sing at sahsing@m-group.us. From: Jonathan Lait Recommendation Staff recommends the Planning and Transportation Commission (PTC) take the following action(s): 1. Recommend approval of the Vesting Tentative Map to the City Council based on the attached findings and conditions. Report Summary The applicant proposes a condominium subdivision that would allow for the single parcel division of airspace in conjunction with the development of 11 townhouse units and a mixed- use building with 4,027 square feet of commercial space and six residential flats on a 32,825 square foot “L” shaped lot with street frontage along El Camino Real and Curtner Avenue. The project site was the subject of Site and Design Review and Design Enhancement applications that were approved by the City Council on September 18, 2017. The intent of the subdivision request is to implement the approved project allowing for the private ownership of each unit/space. Background City of Palo Alto Planning & Community Environment Department Page 2 Project Information Owner: Zijin, LLC c/o Ran Lin Architect: EID Architects, LLC c/o Stuart Welte Civil Engineer: Langan c/o Vitina Mandella Representative: Brandon Arioli, Nuvera Homes Legal Counsel: Not applicable Property Information Address: 3877 El Camino Real Neighborhood: Ventura Lot Dimensions & Area: 313 feet deep x 77 feet wide (El Camino Real) + 53 feet wide x 164 deep (Curtner) 32,825 square feet Housing Inventory Site: Not applicable Located w/in a Plume: Not applicable Protected/Heritage Trees: Not applicable Historic Resource(s): Not applicable Existing Improvement(s): 5,860 square feet 2-stories & 22-feet tall (1938) Existing Land Use(s): Vacant restaurant and parking lot Adjacent Land Uses & Zoning: North: RM-30 (residential multi-family) West: CS & CN (Commercial Uses), Oil change shop, coffee shop, restaurants. East: CS (Commercial Uses) Gas station, credit union South: CN (Commercial Uses) Special Setbacks: Not applicable Aerial View of Property: City of Palo Alto Planning & Community Environment Department Page 3 Source: DigitalGlobe, US Geological Survey, USDA Farm Service Agency, Google 2018 Land Use Designation & Applicable Plans/Guidelines Zoning Designation: CS & RM-30 Comp. Plan Designation: Service Commercial and Multiple Family Residential Context-Based Design: Yes. However, not applicable with this request Downtown Urban Design: Not applicable SOFA II CAP: Not applicable City of Palo Alto Planning & Community Environment Department Page 4 Baylands Master Plan: Not applicable ECR Guidelines ('76 / '02): Yes Proximity to Residential Uses or Districts (150'): Yes Located w/in AIA (Airport Influence Area): Not applicable Prior City Reviews & Action City Council: Site and Design Review on September 18, 2017 (14PLN-00464) https://www.youtube.com/watch?v=jwaAr3z6X60&start=4777&width=420&height=315 http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=59481 PTC: Site and Design Review on March 8, 2017 (14PLN-00464) https://www.youtube.com/watch?v=e_BLBoO7LpE&start=11347&width=420&height=315 http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=56281 HRB: None. ARB: Preliminary Review on December 19, 2013 (13PLN-00439) http://midpenmedia.org/watch/pacc_webcast/December/PAARB_12 1913.html Architectural Review on April 6, 2017 (14PLN-00464) https://www.youtube.com/watch?v=ferj66yQ0Lg&start=14426&width=420&height=315 http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=56818 Architectural Review on May 18, 2017 (14PLN-00464) https://www.youtube.com/watch?v=Tay6Ssk7q0o&start=510&width=420&height=315 http://www.cityofpaloalto.org/civicax/filebank/documents/57841 Project Description The applicant requests approval of a Vesting Tentative Map for condominium purposes to create one 4,026 square feet commercial condominium, six residential flats in a mixed-use building, and 11 townhouse units over a basement garage. The commercial space and each residential unit will be individually owned with the land and improvements being in common ownership. Attachment C provides a summary of the project’s compliance with the zoning standards. Requested Entitlements, Findings and Purview: The following discretionary applications are being requested and subject to PTC purview:  Subdivision (Tentative Map): The process for evaluating this type of application is set forth in Title 21 of the Palo Alto Municipal Code and Government Code Section 66474. Palo Alto Municipal Code Section 21.12.090 requires the Commission to review whether the proposed subdivision complies and is consistent with the Subdivision Map Act (in particular Government Code 66474), Title 21 of the Palo Alto Municipal Code, the Palo Alto Comprehensive Plan, and other applicable provisions of the Palo Alto Municipal Code and State law. The Commission’s recommendation is forwarded to the City Council for final approval. The findings to approve a Subdivision are provided in Attachment B. City of Palo Alto Planning & Community Environment Department Page 5 Analysis1 Consistency with Application Findings The necessary findings for approval of the Tentative Map are contained in State law and incorporated into Title 21 of the Municipal Code. Under the Subdivision Map Act, the PTC and Council must make a series of “reverse” findings to justify approval. If the findings cannot be made, the subdivision must be approved. In particular, under Government Code Section 66474, the PTC shall recommend denying a Tentative Map if it makes any of the following findings: a) That the proposed map is not consistent with applicable general and specific plans. b) That the design or improvement of the proposed subdivision is not consistent with applicable general and specific plans. c) That the site is not physically suitable for the type of development. d) That the site is not physically suitable for the proposed density of development. e) That the design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat. f) That the design of the subdivision or type of improvements is likely to cause serious public health problems. g) That the design of the subdivision or the type of improvements will conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. Some relevant factors are discussed below and a detailed review of the proposed project’s consistency with applicable Title 21 findings has been performed and can be found in Attachment B. Neighborhood Setting and Character The project site is mid-block on El Camino Real. A coffee shop (Starbucks) is located immediately east of the project site and an automobile service use (Nine Minute Oil & Lube) is immediately west. A medical office (Agile Physical Therapy) is on the corner of El Camino Real and Curtner Avenue. A multi-family residential development is located to the north of the commercial properties that front on El Camino Real. Land uses on the southern side of El Camino Real are similar, with commercial properties fronting El Camino Real and multi-family and single-family residential properties to the south. 1 The information provided in this section is based on analysis prepared by the report author prior to the public hearing. Planning and Transportation Commission in its review of the administrative record and based on public testimony may reach a different conclusion from that presented in this report and may choose to take an alternative action from the recommended action. City of Palo Alto Planning & Community Environment Department Page 6 Within the vicinity of the site, buildings are generally low, one to two-story buildings. Buildings are located along the sidewalk, however, the sidewalk within the vicinity is not wide. The project proposes development that is consistent with the zoning code development standards and the vision of the South El Camino Real Design Guidelines. This includes providing the wide sidewalk, where none exists now and providing the build-to setback as encouraged in the guidelines. Zoning Compliance2 A detailed review of the proposed project’s consistency with applicable zoning standards has been performed. A summary table is provided in Attachment C. The proposed project complies with all applicable codes. State Density Bonus / Below Market Rate Housing Ownership housing projects with three or more units are required to meet the City’s Below Market Rate Housing Program (BMR). In accordance with PAMC Section 18.14.030, this project’s total BMR requirement is 2.55 units. When the BMR requirement results in a fractional unit, an in-lieu payment to the Residential Housing Fund may be made for the fractional unit instead of providing an actual BMR unit. Pursuant to project conditions of approval established during the review of the Site and Design Review, the project will enter into an affordable housing agreement with the City to meet these obligations. Consistency with the Comprehensive Plan, Area Plans and Guidelines3 The project site has two land use designations. The El Camino frontage is Service Commercial, while the Curtner Avenue frontage is Multi-Family Residential. The proposed tentative map is consistent with the Comprehensive Plan, in that the site allows mixed-use development and residential development. Review of the project finds it consistent with several Comprehensive Plan Goals and Policies, as further described in Attachment B. Multi-Modal Access & Parking The proposed map is consistent with the previous approvals and implements the conditions of approval from the Site and Design Review. A public access easement is required as a condition of approval with this Tentative Map, and will be dedicated to the City with the proposed Final Map, to create a 12-foot wide sidewalk along the El Camino Real. The below-grade garage will be held in common ownership for use by all condominium owners and parking spaces will be allocated as described in the Declaration of Covenants, Conditions and Restrictions (CC&Rs). In general, the CC&Rs state that 40 of the 61 total parking spaces will be reserved for the residential uses and 21 parking spaces will be reserved for commercial uses. The draft CC&R document may be found on the project website at http://bit.ly/3877ECRmap. 2 The Palo Alto Zoning Code is available online: http://www.amlegal.com/codes/client/palo-alto_ca 3 The Palo Alto Comprehensive Plan is available online: http://www.cityofpaloalto.org/gov/topics/projects/landuse/compplan.asp City of Palo Alto Planning & Community Environment Department Page 7 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 covered by the previous Initial Study and Mitigated Negative Declaration prepared for the Site and Design application (File No. 14PLN-00464) adopted on September 18, 2017. The adopted Mitigation Monitoring and Report Program (MMRP) with identified mitigation for nesting birds is provided in Attachment E. Public Notification, Outreach & Comments The Palo Alto Municipal Code requires notice of this public hearing be published in a local paper and mailed to owners and occupants of property within 600 feet of the subject property at least ten days in advance. Notice of a public hearing for this project was published in the Palo Alto Weekly on August 17, 2018, which is 12 days in advance of the meeting. Postcard mailing occurred on August 22, 2018, which is seven in advance of the meeting. Public Comments As of the writing of this report, no project-related, public comments were received. Alternative Actions In addition to the recommended action, the Planning & Transportation Commission may: 1. Approve the project with modified findings or conditions; 2. Continue the project to a date (un)certain; or 3. Recommend project denial based on revised findings. Report Author & Contact Information PTC4 Liaison & Contact Information Sheldon S. Ah Sing, AICP, Contract Planner Jonathan Lait, AICP, Assistant Director (408) 340-5642 (650) 329-2679 sahsing@m-group.us jonathan.lait@cityofpaloalto.org Attachments:  Attachment A: Location Map (PDF)  Attachment B: Draft Record of Land Use Action (DOCX)  Attachment C: Zoning Comparison Table (DOCX)  Attachment D: Applicant's Project Description (PDF)  Attachment E: Mitigation Monitoring and Report Program (PDF)  Attachment F: Project Plans (DOCX) 4 Emails may be sent directly to the PTC using the following address: planning.commission@cityofpaloalto.org 1 ATTACHMENT B ACTION NO. 2018-XX DRAFT RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION FOR 3877 EL CAMINO REAL: VESTING TENTATIVE MAP, 17PLN-00321 (BRANDON ARIOLI, APPLICANT) At its meeting on ______, 2018, the City Council of the City of Palo Alto (“City Council”) approved the Vesting Tentative Map for the development of a two-lot subdivision project making the following findings, determinations and declarations: SECTION 1. Background. A. On August 31, 2017, Brandon Arioli applied for a Vesting Tentative Map for the development of a one parcel condominium subdivision project with 17 residential units and 4,676 square feet of commercial space (“The Project”). B. The project site is comprised of one existing lot (APN No. 132-41-091) of approximately 0.75-acres with two separate zoning districts (CS and RM-30). The site contains one existing commercial structure. Commercial land uses are located adjacent to the lot to the north, south and west. To the project’s east are residential land uses. C. Following staff review, the Planning and Transportation Commission reviewed the project and recommended approval on August 29, 2018, subject to conditions of approval. SECTION 2. Environmental Review. The City as the lead agency for the Project has determined that the project is subject to environmental review under provisions of the California Environmental Quality Act (CEQA) under Guideline section 15070, Decision to Prepare an Initial Study-Mitigated Negative Declaration (IS-MND). An initial study was prepared for the project and it has been determined that there is potential for significant impacts that would require mitigation measures to reduce them to a less than significant level. These include mitigations for protection for nesting birds. The IS-MND was made available for public review beginning March 6, 2017 for 20 days, and adopted by the City Council on September 18, 2017. The Initial Study and Negative Declaration are contained as Attachment G in the September 18, 2017, City Council staff report (ID #8458). SECTION 3. Vesting Tentative Map Findings. A legislative body of a city shall deny approval of a tentative map, if it makes any of the following findings (California Government Code Section 66474). The City Council cannot make these findings for the following reasons: 2 1. That the proposed map is not consistent with applicable general and specific plans as specified in Section 65451: The site is consistent with the Comprehensive Plan as described below. 2. That the design or improvement of the proposed subdivision is not consistent with applicable general and specific plans: The Project is consistent with the following Comprehensive Plan policies:  Policy L-1.3 Infill development in the urban service area should be compatible with its surroundings and the overall scale and character of the city to ensure a compact, efficient development pattern.  Policy L-2.6 Create opportunities for new mixed-use development consisting of housing and retail.  Policy L-2.11 Encourage new development and redevelopment to incorporate greenery and natural features such as green rooftops, pocket parks, plazas and rain gardens.  Policy L-3.4 Ensure that new multi-family buildings, entries and outdoor spaces are designed and arranged so that each development has a clear relationship to a public street.  Policy L-4.2 Preserve ground-floor retail, limit the displacement of existing retail from neighborhood centers and explore opportunities to expand retail.  Policy L-6.1 Promote high-quality design and site planning that is compatible with surrounding development and public spaces.  Policy L-6.7 Where possible, avoid abrupt changes in scale and density between residential and non-residential areas and between residential areas of different densities. To promote compatibility and gradual transitions between land uses, place zoning district boundaries at mid-block locations rather than along streets wherever possible. The project includes a mixed-use building with frontage along El Camino Real with townhouse style residential buildings for the balance of the property. Parking is provided below grade and therefore allows for the integration of open space and plazas at-grade. The project complements the surrounding development and is consistent with the land-use designations for the property. The project was reviewed by the ARB, Planning & Transportation Commission and the City Council previously for design review. 3. That the site is not physically suitable for the type of development: 3 The site is an “L” shape lot with frontage on two streets. The design of the site includes appropriate separation between the mixed-use building and the solely residential component and the adjacent multi-family properties. The project is consistent with the City’s Performance Standards set forth in Palo Alto Municipal Code (PAMC) 18.23, ensuring compatibility between commercial and residential uses. Proposed lighting is directed downward to prevent spillover to adjacent properties. Trash enclosures are located in the basement of the project. The project provides the required setback above ground and includes vegetation and tree plantings within the setback and open spaces. Mechanical equipment areas are screened appropriately. The site circulation facilitates access for all modes of transportation. The project includes short- term and long-term bike parking. On-site vehicular traffic will be directed underground, leaving the aboveground for pedestrians and bicyclist. Wide walkways and plazas surround the commercial areas and provide connectivity to the residential areas. 4. That the site is not physically suitable for the proposed density of development: The allowed residential density for the site is 30 dwelling units per acre (Both CS and RM-30 districts), which based on the project site acreage amounts to 22 dwelling units that would be allowed. However, the project only proposes 17 dwelling units. The project is consistent with the maximum Floor Area Ratio and does qualify for an affordable housing density bonus. The density bonus floor area is applied to the below-market-rate units in accordance with the City’s Municipal Code. 5. That the design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat: As conditioned in the Final IS-MND approved by the City Council on September 18, 2017, the Project will not cause environmental damage or injure fish, wildlife, or their habitat, in that property is not adjacent to sensitive habitat areas and would incorporate mitigation measures to reduce impacts to nesting birds to a less than significant level. 6. That the design of the subdivision or type of improvements is likely to cause serious public health problems: An environmental analysis identifies potentially significant impacts related to the associated development project’s improvements that would require mitigation measures to reduce them to a less than significant level. These include mitigations for protection for nesting birds as reported in the Final IS-MND approved by the City Council on September 18, 2017. 7. That the design of the subdivision or the type of improvements will conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. In this connection, the governing body may approve a map if it finds that alternate easements, for access or for use, will be provided, and that these will be substantially equivalent to ones previously acquired by the public. This subsection shall apply 4 only to easements of record or to easements established by judgment of a court of competent jurisdiction and no authority is hereby granted to a legislative body to determine that the public at large has acquired easements for access through or use of property within the proposed subdivision. The design of the subdivision will not conflict with any easements for access through or use of the property. A public access easement will be dedicated with the Final Map to the provide an additional four feet of sidewalk between the front property line and back of walk along the El Camino Real frontage to create a 12-foot effective sidewalk width. SECTION 4. Vesting Tentative Map Approval Granted. Vesting Tentative Map Approval is filed and processed in accordance to PAMC Section 21.13.020 and granted by the City Council under PAMC Sections 21.12 and 21.20 and the California Government Code Section 66474, subject to the conditions of approval in Section 7 of this Record. SECTION 5. Final Map. The Final Map submitted for review and approval by the City Council shall be in substantial conformance with the Vesting Tentative Map prepared by Langan titled “Vesting Tentative Map 3877 El Camino Real for Condominium Purposes,” consisting of seven (7) pages, stamped as received January 23, 2018, except as modified to incorporate the conditions of approval in Section 6. A copy of the Vesting Tentative Map is on file in the Department of Planning and Community Environment, Current Planning Division. Prior to the expiration of the Vesting Tentative Map approval, the subdivider shall cause the subdivision or any part thereof to be surveyed, and a Final Map, as specified in Chapter 21.08, to be prepared in conformance with the Vesting Tentative Map as conditionally approved, and in compliance with the provisions of the Subdivision Map Act and PAMC Title 21 and submitted to the City Engineer (PAMC Section 21.16.010[a]). SECTION 6. Conditions of Approval. Planning Division 1. MITIGATION MONITORING AND REPORTING PROGRAM. Mitigation Monitoring and Reporting Program (MMRP), prepared for this project in compliance with the California Environmental Quality Act (CEQA), shall be incorporated by reference as conditions of approval. The applicant shall comply with all specified mitigation measures in the timelines outlined in the project’s MMRP. Prior to requesting issuance of any related demolition and/or construction permits, the applicant shall meet with the Project Planner to review and ensure compliance with the MMRP, subject to the satisfaction of the Director of Planning of Planning and Community Environment. 2. BELOW MARKET RATE (BMR) HOUSING. A Density Bonus Developer and Regulatory Agreement in a form acceptable to the City Attorney for the two (2) BMR units shall be executed and recorded prior to final map approval or building permit issuance, 5 whichever occurs first. In addition, the payment for the 0.55 fractional unit shall be paid to the Residential Housing Fund prior to issuance of any building permits for the project; provided, however, that prior to issuance of the first building permit for the project, the applicant may elect to provide one additional inclusionary unit instead of paying the fractional in lieu payment (PAMC Section 16.65.060). 3. All BMR units constructed under this condition shall be in conformance with the City’s BMR Program rules and regulations. A BMR Agreement in a form acceptable to the City Attorney for the 2.55 BMR units shall be executed and recorded prior to final map approval or building permit issuance, whichever occurs first. Failure to comply with the timing of this condition and any adopted BMR Program rules and regulations shall not waive its later enforcement. 4. ESTIMATED IMPACT FEE. Development Impact Fees, currently estimated in the amount of $311,130.37 plus the applicable public art fee, per PAMC 16.61.040, shall be paid prior to the issuance of the related building permit. 5. IMPACT FEE 90-DAY PROTEST PERIOD. California Government Code Section 66020 provides that a project applicant who desires to protest the fees, dedications, reservations, or other exactions imposed on a development project must initiate the protest at the time the development project is approved or conditionally approved or within ninety (90) days after the date that fees, dedications, reservations or exactions are imposed on the Project. Additionally, procedural requirements for protesting these development fees, dedications, reservations and exactions are set forth in Government Code Section 66020. IF YOU FAIL TO INITIATE A PROTEST WITHIN THE 90-DAY PERIOD OR FOLLOW THE PROTEST PROCEDURES DESCRIBED IN GOVERNMENT CODE SECTION 66020, YOU WILL BE BARRED FROM CHALLENGING THE VALIDITY OR REASONABLENESS OF THE FEES, DEDICATIONS, RESERVATIONS, AND EXACTIONS. If these requirements constitute fees, taxes, assessments, dedications, reservations, or other exactions as specified in Government Code Sections 66020(a) or 66021, this is to provide notification that, as of the date of this notice, the 90-day period has begun in which you may protest these requirements. This matter is subject to the California Code of Civil Procedures (CCP) Section 1094.5; the time by which judicial review must be sought is governed by CCP Section 1094.6. Public Works Engineering Department 6. OFF-SITE IMPROVEMENTS: Submit a copy of the off-site improvement plans that includes the replacement of curb, gutter, sidewalk, utilities, landscape, etc. Provide Caltrans standard details along the project frontage. Plans shall include the proposed public access easement, grades along the conforms. a. STREET LIGHTING: The applicant is required to replace the existing street lights along the El Camino Real sidewalk project frontage. New pedestrian-scale 6 luminaires, poles and bases shall be centered between the roadway lighting to provide a combined spacing of roughly 60-ft O.C. Decorative roadway and pedestrian scale lighting standards are available from Public Works staff. Plot and label the new lights on the proposed Site Plan. b. SIDEWALK, CURB & GUTTER: As part of this project, the applicant must replace all existing sidewalk, curbs, gutters and driveway approaches in the public right- of-way along the frontage(s) of the property. The 4-foot wide extended sidewalk area along the El Camino Real property frontage shall be paved with City standard concrete and clear of obstruction such as planter or structures of any kind. On the Curtner Avenue frontage, the monolithic sidewalk, rolled curb and gutter shall be replaced in kind with any new street trees planted between the back of walk and the property line. Any existing non-compliant curb ramps adjacent to the required resurfacing work shall also be replaced. The site plan submitted with the building permit plan set must show the extent of the replacement work (at a minimum all curb and gutter and sidewalk along the project frontage) The plan must note that any work in the right-of-way must be done per Public Works’ standards by a licensed contractor who must first obtain a Street Work Permit from Public Works at the Development Center. Include the 12-foot wide dimension on the plans and verify that the sidewalk is unobstructed. 7. Subdivider shall prepare and submit documents per PAMC 21.16.020 along with the Final Map. 8. Subdivider provide closure calculations and cost estimate for the off-site improvements described above. 9. PUBLIC ACCESS EASEMENT: Owner or designee shall create a public access easement for the additional area behind the property line needed to create a 12-foot wide sidewalk along El Camino Real. Plot and label the Public Access Easement along El Camino Real that provides the 12-foot wide sidewalk. 10. A Subdivision Improvement Agreement is required to secure compliance with condition of approval and security of improvements onsite and offsite per PAMC Section 21.16.220. 11. The Final Map shall include CITY ENGINEER STATEMENT, CITY SURVEYOR STATEMENT, BENEFICIARY STATEMENT, DIRECTOR OF PLANNING AND COMMUNITY ENVIRONMENT STATEMENT and CITY CLERK. 12. The City of Palo Alto does not currently have a City Surveyor. The City retains the services of a contractor to review and provide approval on behalf of the City. The 7 contractor will be reviewing, signing and stamping the Final Map associated with your project. In effort to employ the services of the contractor, and as part of the City’s cost recovery measures, the applicant is required to provide payment to cover the cost of the contract’s review. Our intent is to forward your Final Map to the contractor for an initial preliminary review of the documents. The contractor will then provide a review cost amount based on the complexity of the project and the information shown on the document. We will share this information with you once we receive it and ask that you return a copy acknowledging the amount. You may then provide a check for this amount as payment for the review cost. The City must receive payment prior to beginning the final review process. 13. Subdivider shall provide electronic copies of the documents provided. PRIOR TO FINAL MAP RECORDATION. 14. The subdivider shall submit wet signed and stamped mylar copy of the Final Map to the Public Works for signature. Map shall be signed by Owner, Notary and Surveyor prior to formal submittal. 15. The subdivider shall provide a signed Subdivision Improvement Agreement and Security Bonds as described per PAMC 21.16.230. PRIOR TO ISSUANCE OF A BUILDING PERMIT OR GRADING AND EXCAVATION PERMIT 16. A Final Map shall be recorded with County Recorder by the owner or designee. SECTION 7. Term of Approval. Vesting Tentative Map. All conditions of approval of the Vesting Tentative Map shall be fulfilled prior to approval of a Final Map (PAMC Section 21.16.010[c]). Unless a Final Map is filed, and all conditions of approval are fulfilled within a two-year period from the date of Vesting Tentative Map approval, the Vesting Tentative Map shall expire and all proceedings shall terminate. An extension of time may be granted by the city council after recommendation of the planning commission, upon the written application of the subdivider, prior to the expiration of the Vesting Tentative Map approval, or any previous extension granted. Such extension(s) shall be subject to the maximum limitations set forth in the Subdivision Map Act. PASSED: AYES: 8 NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: _________________________ ____________________________ City Clerk Interim Director of Planning and Community Environment APPROVED AS TO FORM: ___________________________ Deputy City Attorney PLANS AND DRAWINGS REFERENCED: Those plans prepared by Langan titled “Vesting Tentative Map 3877 El Camino Real for Condominium Purposes, City of Palo Alto, Santa Clara County, California” consisting of seven (7) pages, stamped, January 23, 2018. ATTACHMENT C ZONING COMPARISON TABLE 3877 El Camino Real, File No. 17PLN-00321 Tentative Map Table 1: COMPARISON WITH CHAPTER 18.13 (RM-30 DISTRICT) Regulation Required Existing Proposed Minimum Site Area 8,500 square feet 21,867.8 sf (0.50 ac) 21,867.8 sf (0.50 ac) Minimum Site Width (2) 70 feet 55 feet 55 feet Minimum Site Depth 100 feet 180 feet 180 feet Table 2: COMPARISON WITH CHAPTER 18.16 (CS DISTRICT) Regulation Required Existing Proposed Minimum Site Area None 10,957.5 sf (0.25 ac) 10,957.5 sf (0.25 ac) Minimum Site Width (2) None 74 feet 74 feet Minimum Site Depth None 140 feet 140 feet August 31, 2017 City’s Current Planning Manager 250 Hamilton Avenue Palo Alto, CA 94303 Nuvera Homes 7041 Koll Center Parkway Suite #170 Pleasanton, CA 94566 Letter of Application For 3877 El Camino Real (14PLN-00464) Dear City’s Current Planning Manager, On May 18th, 2017,the Architectural Review Board (ARB) recommended approval of the Site and Design Review and Design Enhancement Exception applications for the demolition of a 5,860 square foot commercial building and construction of a new mixed-use project. The project includes a three-story 35-foot tall, 4,027 square foot mixed use building and 17 two-story (29’- 8”) dwelling units (flats and townhouses). Parking for the project is provided in a basement and includes 62 parking spaces on a 32,825 square foot lot having two zoning districts (CS and RM- 30). The project also includes a reduction in a rear setback for the basement from 10 feet to 6’- 2”. The City Council made its determination by making the following findings, determination and declarations The proposed subdivision complies with the design criteria of PAMC Chapter 21.20 and 21.28 in the following ways: 1) The design of the proposed seventeen-unit mixed use development is consistent and compatible with applicable elements of the City's Comprehensive Plan in that the site is designated on the Comprehensive Plan land use map as Service Commercial and Multiple Family Residential and is located within the Service Commercial (CS) and Residential Multi-Family (RM- 30) zoning districts and the Comprehensive Plan Table indicates compliance with applicable policies. 2) The design is compatible with the immediate environment of the site in that the proposed building is located within a CS and RM-30 zone district where other mixed-use buildings are common; 3) The design is appropriate to the function of the project in that the design makes the most functional use possible given the narrow constraints of “L” shaped parcel (0.75 acres) with street frontage on both El Camino Real (CS zoning district) and Curtner Avenue(RM-30). 4) The design promotes harmonious transitions in scale and character in areas between different designated land uses in that the scale of the proposed project creates a buffer between the commercial-properties along El Camino adjacent to the west of the project and the lower scale residential neighborhood to the east of the project; ' 5) The design is compatible with approved improvements both on and off the site in that the proposed residential use of the building will be compatible with the other mixed-use buildings in the area; 6) The planning and siting of the various functions and buildings on the site create an internal sense of order and· provide a desirable environment for occupants, visitors and the general community in that the proposed design makes good use of the available space on this narrow lot, accommodating the requirements for open space, parking and sufficient vehicular access; 7) The amount and arrangement of open space are appropriate to the design and the function of the structures in that ample open space is provided in the form of private patio areas and multiple balconies for each of the seventeen dwelling units as well as common open space along the commercial side of the property; 8) Sufficient ancillary functions are provided to support the main functions of the project in that the proposal includes sufficient parking and areas to accommodate trash and recycling needs of the development; 9) Access to the property and circulation thereon are safe and convenient for pedestrians, cyclists and vehicles in that adequate parking areas are proposed despite the narrowness of the lot; 10) Natural features are appropriately preserved and integrated with the project in that the proposal will ensure the preservation of existing trees; 11) The landscape design concept for the site, as shown by the relationship of plant masses, open space, scale, plant forms and foliage textures and colors create a desirable and functional environment in that the remaining open areas are fully planted and the utility equipment is screened as best is possible; 12) Plant material is suitable and adaptable to the site, capable of being properly maintained on the site, and is of a variety, which would tend to be drought resistant and to reduce consumption of water in its installation and maintenance; In conclusion, the proposed project is consistent for all of the reasons and findings specified above. 3877 El Camino Real Project Mitigation Monitoring Program 3877 El Camino Real Project Page 1 Mitigation Monitoring & Reporting Program February 2017 INTRODUCTION Section 15097 of the Guidelines for the California Environmental Quality Act (CEQA) requires that, whenever a public agency approves a project based on a Mitigated Negative Declaration (MND) or an Environmental Impact Report (EIR), the public agency shall establish a mitigation monitoring or reporting program to ensure that all adopted mitigation measures are implemented. This Mitigation Monitoring Program (MMP) is intended to satisfy this requirement of the CEQA Guidelines as it relates to the 3877 El Camino project. This MMP would be used by City staff and mitigation monitoring personnel to ensure compliance with mitigation measures during project implementation. Mitigation measures identified in this MMP were developed in the Initial Study prepared for the proposed project. As noted above, the intent of the MMP is to ensure the effective implementation and enforcement of all adopted mitigation measures. The MMP will provide for monitoring of construction activities, as necessary, and in the field identification and resolution of environmental concerns. MITIGATION MONITORING PROGRAM DESCRIPTION The City of Palo Alto will coordinate monitoring activities and ensure appropriate documentation of mitigation measure implementation. The table below identifies each mitigation measure for the 3877 El Camino Real Project and the associated implementation, monitoring, timing and performance requirements. The MMP table presented on the following pages identifies: 1. the full text of each applicable mitigation measure; 2. the party or parties responsible for implementation and monitoring of each measure; 3. the timing of implementation of each mitigation measure including any ongoing monitoring requirements; and 4. performance criteria by which to ensure mitigation requirements have been met. Following completion of the monitoring and documentation process, the final monitoring results will recorded and incorporated into the project file maintained by the City’s Department of Planning and Community Environment. The mitigation measure numbering reflects the numbering used in the Initial Study prepared for the 3877 El Camino Real (Dudek 2016). 3877 El Camino Real Project Mitigation Monitoring Program 3877 El Camino Real Project Page 2 Mitigation Monitoring & Reporting Program February 2017 No mitigation measures are required for the following resources:  Aesthetics  Agricultural Resources  Air Quality  Cultural Resources  Geology, Soils, and Seismicity  Greenhouse Gas Emissions  Hazards and Hazardous Materials  Hydrology and Water Quality  Land Use and Planning  Mineral Resources  Noise  Population and Housing  Public Services  Recreation  Transportation and Traffic  Utilities and Service Systems Mitigation Measure Implementation Responsibility Monitoring Responsibility Timing Performance Evaluation Criteria BIOLOGICAL RESOURCES Mitigation Measure BIO-1: If feasible, vegetation on the project site shall be removed outside of the bird-nesting season. If the start of site clearing, tree removal, or building demolition occurs between February 1 and August 31, a pre-construction survey for nesting birds protected under the Migratory Bird Treaty Act shall be conducted by a qualified biologist to identify the location of nests in active use that were established prior to the start of project implementation activities. The pre-construction survey shall take place no more than 7 days prior to initiation of construction. All trees and shrubs on the site shall be surveyed, with particular attention to any trees or shrubs that would be removed or directly disturbed. Further, the project applicant shall retain a qualified biologist to perform additional nesting bird surveys at least every 2 weeks during all phases of construction that occur during the nesting season. If an active nest of a protected bird is found on site at any time, the biologist shall, in consultation with the California Department of Fish and Wildlife (CDFW), determine whether construction work would affect the active nest or disrupt reproductive behavior. Criteria used for this evaluation shall include presence of visual screening between the nest and construction activities, and behavior of adult Applicant City of Palo Alto Department of Planning and Community Environment Prior to issuance of demolition permit Pre-construction survey is completed prior to demolition. Surveys are repeated throughout construction. Protection measures are implemented during demolition and construction. Nesting birds are not disturbed until young have fledged. 3877 El Camino Real Project Mitigation Monitoring Program 3877 El Camino Real Project Page 3 Mitigation Monitoring & Reporting Program February 2017 Mitigation Measure Implementation Responsibility Monitoring Responsibility Timing Performance Evaluation Criteria raptors in response to the surveyors or other ambient human activity. If construction could affect the nest or disrupt reproductive behavior, the biologist shall, in consultation with CDFW, determine an appropriate construction-free buffer zone around the nest to remain in place until the young have fledged or other appropriate protective measures are taken to ensure no take of protected species occurs. If it is determined that construction will affect an active raptor nest or disrupt reproductive behavior, then avoidance is the only mitigation available. Construction shall not be permitted within 300 feet of such a nest until a qualified biologist determines that the subject nests are no longer active. Prior to issuance of a demolition permit, the City of Palo Alto (City) shall verify that pre-construction surveys have been conducted within 7 days of the proposed start of demolition. If active bird nests are present, the City shall verify that CDFW has been consulted and either determined that construction will not affect an active bird nest or that appropriate construction-free buffer zones have been established or other appropriate protective measures have been taken. Mitigation Measure BIO-2: A pre-construction survey shall be conducted by a qualified biologist (i.e., a biologist holding a California Department of Fish and Wildlife (CDFW) collection permit and a Memorandum of Understanding with CDFW allowing the biologist to handle bats) no earlier than 30 days prior to initiation of construction and demolition activities to determine if active bat roosts or maternal colonies are present on or within 300 feet of the construction demolition area. Surveys shall include the structures proposed for demolition. Should an active maternity roost be identified, the roost shall not be disturbed, and demolition and construction within 300 feet of the maternity roost shall be postponed or halted until the juveniles have fledged and the roost is vacated, as determined by a qualified biologist. Consultation with CDFW shall also be Applicant City of Palo Alto Department of Planning and Community Environment Prior to issuance of demolition permit Pre-construction survey is completed prior to demolition. Avoidance measures are implemented during demolition and construction. Nonbreeding bat hibernacula may be safely evicted under the direction of a qualified bat biologist and with 3877 El Camino Real Project Mitigation Monitoring Program 3877 El Camino Real Project Page 4 Mitigation Monitoring & Reporting Program February 2017 Mitigation Measure Implementation Responsibility Monitoring Responsibility Timing Performance Evaluation Criteria initiated. Under no circumstance shall an active roost be directly disturbed. If nonbreeding bat hibernacula are found on the project site, the individuals shall be safely evicted under the direction of a qualified bat biologist and with consultation with CDFW. These actions shall allow bats to leave during nighttime hours, increasing their chance of finding new roosts with a minimum of potential predation during daylight. If it is determined that demolition or construction will not affect roosting behavior or disrupt a maternal colony, demolition or construction may proceed without any restriction or mitigation measure. If it is determined that demolition or construction will affect an active bat roost or disrupt reproductive behavior, then avoidance is the only mitigation available. Under no circumstance shall an active roost be directly disturbed. Demolition or construction within 300 feet shall be postponed or halted until the roost is naturally vacated as determined by a qualified biologist. Prior to issuance of a demolition permit, the City of Palo Alto (City) shall verify that pre-construction surveys have been conducted within 30 days of the proposed start of demolition. If bats are present, the City shall verify that CDFW has been consulted and either determined that construction will not affect an active bat roost or disrupt a maternal colony or that individuals in a nonbreeding bat hibernacula have been safely evicted. Due to regulations from the California Department of Public Health, direct contact by construction workers with any bat is not allowed. consultation with CDFW. Attachment F Project Plans Hardcopies of project plans are provided to Commission members. These plans are available to the public online and/or by visiting the Planning and Community Environmental Department on the 5th floor of City Hall at 250 Hamilton Avenue. Directions to review Project plans online: 1. Go to: bit.ly/PApendingprojects 2. Scroll down to find “3877 El Camino Real” and click the address link 3. On this project specific webpage you will find a link to the project plans and other important information A direct link to the project page is also provided here: https://www.cityofpaloalto.org/news/displaynews.asp?NewsID=4333 Planning & Transportation Commission Staff Report (ID # 9218) Report Type: Study Session Meeting Date: 8/29/2018 City of Palo Alto Planning & Community Environment 250 Hamilton Avenue Palo Alto, CA 94301 (650) 329-2442 Summary Title: Framework for the 2018 Comp Plan/Housing Ordinance Title: Implementing the Council Housing Work Plan Referral: Framework for the 2018 Comp Plan Implementation and Housing Ordinance From: Jonathan Lait Recommendation Staff recommends the Planning and Transportation Commission (PTC): 1. Review the framework for housing-related zoning changes to encourage production of a diversity of housing types in appropriate locations, as specified by the Council referral of 2018 Housing Work Plan items; and 2. Provide input to staff regarding possible zoning changes to inform preparation of a draft ordinance. Report Summary The Background section of this report summarizes work completed to date, including PTC study sessions, meetings with stakeholders who regularly use the zoning code, and a community open house on housing held in June 2018. The background section also provides updated findings from the Fehr & Peers’ study of parking occupancy rates at multi-family residential developments in Palo Alto. The revised study includes an intercept survey to obtain resident perspectives on parking conditions and availability, as well as an analysis of on-street parking surrounding the surveyed sites. The Discussion/Analysis section of this report:  identifies existing zoning regulations and how they relate to housing production;  offers ideas for zoning revisions;  details how the revisions would increase housing production and/or affordability; and  analyzes how the revisions fit in with the specific implementation items identified in the Council’s Housing Work Plan referral. City of Palo Alto Planning & Community Environment Department Page 2 The PTC is requested to provide comments on the draft ideas for zoning revisions. This input will inform staff’s preparation of a draft ordinance for PTC and Council consideration this fall. Background On February 12, 2018, the City Council approved a Housing Work Plan, which outlines steps to implement the City’s vision and adopted policies and programs for housing production, affordability, and preservation. The Work Plan includes select policies and programs from the adopted Comprehensive Plan, adopted Housing Element, and a City Council colleagues’ memo. The Work Plan describes the City’s progress towards the housing production goals at various income levels (i.e. RHNA) identified in the Comprehensive Plan Housing Element. The Work Plan also explains the City’s progress towards the housing projections developed during preparation of the updated Comprehensive Plan (i.e., 3,545-4,420 new units between 2015 and 2030). In both cases, the City is behind in its effort to meet these goals. The approved Housing Work Plan indicates what action is needed to spur the production of housing. The City Council referred to the PTC specific Work Plan items related to a 2018 zoning amendment ordinance. The PTC has held three study sessions to analyze various aspects of the Work Plan and to consider possible zoning changes to facilitate implementation of both the Work Plan and (by extension) the Comprehensive Plan housing production targets. A summary of previous study sessions is provided, as follows:  March 14th: The PTC discussed the Work Plan goals, timeline, and the PTC’s role in implementation.  April 25th: The PTC discussed key issues in the zoning code as they relate to the Council referral, including issues regarding development standards and the entitlement process.  May 30th: The PTC discussed parking topics as they relate to housing production, including a new study of parking occupancy in multi-family residential developments in Palo Alto. The purpose of the August 29th study session is to receive public input and Commission feedback on the conceptual framework of zoning changes to inform preparation of an ordinance for PTC and Council consideration. The City is pursuing these zoning updates in parallel with several other zoning and policy changes to achieve Work Plan, Comprehensive Plan, and Housing Element goals. Specifically, changes to local implementation of State Density Bonus Law, an updated Accessory Dwelling Unit Ordinance, a new Affordable Housing Overlay, and a new Workforce Housing Overlay are intended to facilitate affordable housing at varying income levels and market rate housing opportunities, consistent with the City’s adopted policy. City of Palo Alto Planning & Community Environment Department Page 3 As these zoning changes are implemented through individual development projects, the City will continue to evaluate the effects of the code change, and make additional revisions over time, as would be necessary. Community Outreach. As Council directed for the Work Plan implementation, the City has conducted two complementary community outreach efforts: (1) meetings with stakeholders who regularly use the City’s zoning code; and (2) a community meeting with the public at-large. Findings from these efforts are described below. (1) Stakeholder Meetings. Consultants conducted 16 meetings with 22 individuals (primarily architects and developers) in April and May 2018. Attachment A provides a summary of these meetings. Key findings were as follows:  Generally, stakeholders agreed with the direction of the Council referral, including streamlining the review process and reducing zoning constraints.  Density and parking were cited as the major constraints to configuring a site in terms of site planning, massing, and the number of units attainable.  There was a general sense that the current zoning does not support the City’s stated goals of multi-family housing, and a recommendation that the City instead allow the types of developments that it wants “by right” and/or through modifications to density, parking, and related standards.  Stakeholders expressed frustration about the length of time the entitlement process takes due to multiple reviewing bodies and instead recommended having one review body conduct design review based on a clear set of standards. (2) Community Open House. On June 28, 2018, the City held a community open house on housing topics to describe the Housing Work Plan, present ideas for its implementation, and solicit feedback from community members on proposed ideas. Over 30 community members attended the meeting, which included a presentation, an open house of “idea stations” that allowed participants to interact with staff and other participants one-on-one or in small groups, and a debrief to share community members’ comments. The presentation, idea station boards, and detailed feedback (in the form of notes taken by staff and individual feedback forms) may be reviewed on the project website: https://www.cityofpaloalto.org/gov/depts/pln/long_range_planning/housing_programs_and_p olicies/housing_work_plan.asp Attachment B provides detailed notes from the open house; key findings are summarized below:  Participants expressed a range of perspective on housing needs and ideas to spur housing production. There was little consensus about how to implement the adopted goals of the Comprehensive Plan, Housing Element and direction proposed in the Housing Work Plan. City of Palo Alto Planning & Community Environment Department Page 4  While some participants supported revisions to development standards and review processes to streamline housing production, others were concerned about impacts of new development on existing neighborhoods, traffic, and services.  Ideas for revisions to parking regulations had the greatest range in perspectives: some participants were concerned that reductions in parking requirements would lead to spillover parking in neighborhoods; others supported requirements that more closely matched demand, especially for populations with lower parking demand such as seniors, homeless, and low income households. Revised Parking Study. At the May 30, 2018 PTC meeting, a few Commissioners expressed concerns about the parking study prepared by Fehr & Peers, which assessed parking occupancy at nine multi-family housing sites throughout the city. Specifically, Commissioners wanted to understand the relationship between Census data and the empirical study conducted by Fehr & Peers; the PTC suggested that the study account for tenants parking on City streets, and asked for qualitative perspectives to understand where residents are parking and why. Based on additional data collection, Fehr & Peers has revised the parking study, which is provided in Attachment C. In June and July, 2018, they conducted new surveys at eight of the nine apartment complexes to measure peak parking demand for both off-street and on-street spaces.1 Most of the complexes demonstrated similar or slightly lower on-site parking demand between the previous surveys and the new surveys. In part, this may be due to summertime schedules and vacations. The updated report suggests reductions to parking requirements to better align parking supply with demand, as shown in the parking subsection below (see idea #6). In addition, Fehr & Peers conducted intercept surveys at one of the complexes, the Marc, to determine residents’ perspectives on parking conditions.2 Residents at this complex generally parked in the on-site garage since they have assigned spaces, feel safe, and can avoid the hassle of on-street parking. However, the sample size of one complex is too small to draw conclusions. Although anecdotally interesting, it falls short of staff’s expectations for data collection to meet the PTC’s interest in understanding tenants’ perspectives. Chart 1 responds to Commissioners’ questions about the relationship between Census data and the Fehr & Peers findings. It also provides data by tenure (rental vs. ownership-occupied households) as a proxy for income, in response to at least one Commissioner’s interest in the effects of income on vehicle ownership. The Fehr & Peers study analyzed parking occupancy for multi-family, renter-occupied households only. On the other hand, American Community Survey (ACS) data, gathered by the U.S. Census, takes a sample of all households, including 1 One apartment complex had been sold since Fehr & Peers conducted the original survey; the new owners did not want to participate in the updated survey. 2 For this in-person survey, Fehr & Peers intercepted residents in and near the project garage to ask questions about their perspectives on parking inside the project versus outside on the street. Only one property manager/owner allowed Fehr & Peers to conduct the intercept survey; the other eight declined to participate. City of Palo Alto Planning & Community Environment Department Page 5 renters, owners, and occupants of both single- and multi-family homes. Chart 1 reports the ACS data, which demonstrate that renters in Palo Alto have substantially fewer vehicles compared to owners. Accordingly, one might expect lower vehicle ownership rates among households in the sites surveyed by Fehr & Peers compared to the vehicle ownership rates among the total population citywide. Highest and Best Use: Office vs. Residential Development At least one Commissioner has asked whether bringing standards on par for these different use types would affect the feasibility of residential uses and a property owner’s decision-making about what type of project to pursue. The highest and best use of a property is determined by four key factors: 1. Legal permissibility (is it permitted by zoning and other regulations); 2. Physical possibility (do site specific features make development impossible or too costly); 3. Financially feasibility (does the potential use have value commensurate with its costs); and 4. Maximal productivity (the use that produces the highest “residual land value,” a metric of the value of the use, less the cost expended to build it). Currently, office, hotel, and multi-family residential (when part of a mix of uses) are legally permitted uses in most of the CD(C), CC(2), CS, and CN districts. However, as was documented City of Palo Alto Planning & Community Environment Department Page 6 in the April 25th study session and summarized in Idea #11 below, district regulations favor office and other non-residential uses versus residential uses through more generous development standards (e.g., parking standards, FARs), which affect the physical possibility of multi-family development. (See Attachment D for a comparison of how different use types can buildout in the CD(C) and CS districts.) While an office and multi-family use may both be financially feasible, an office use is often the maximally productive use, given higher densities, lower construction and operating costs, and higher lease rates, as shown in Chart 2 below. In order to change this equation to tip the balance toward multi-family residential uses, a change in the market and/or policy interventions are required. Modifications to development standards and use regulations affect physical possibilities and legal permissibility, respectively. While changes in construction costs, demand, and lease rates affect financial feasibility. During stakeholders interviews, a couple of developers indicated that the market for office uses in Palo Alto is softening. This statement is supported by data that shows a modest reduction in lease rates since the last quarter of 2017 (Chart 2) and the highest office vacancy rates in the last three quarters that the city has seen in the last four years in which data were available (Chart 3). In part, this may be due to the City’s policy interventions to reduce office construction and a greater market trend of companies and their employees wanting to locate in more urban locations, specifically San Francisco and Oakland, which are experiencing office construction booms.3 3 For example, see Newmark Knight Frank, 2018. Greater Oakland Office Market. Research 2Q 2018 http://www.ngkf.com/Uploads/FileManager/2Q18%20Greater%20Oakland%20Office%20Report.pdf and Newmark City of Palo Alto Planning & Community Environment Department Page 7 While the City’s decision-makers cannot control market factors, they can affect physical feasibility through zoning modifications. Ideas for these modifications are detailed in the section below. Discussion/Analysis This section presents a framework for the Comprehensive Plan Implementation and Housing Ordinance. With the exception of ideas presented in the “other” subsection below, all of these ideas have previously been reviewed by the PTC and/or by the community open house participants. Conceptual ideas are presented as a starting place for discussion purposes. Based on the Commission’s and community’s feedback, this list will be refined in preparation of an ordinance. Chapter numbers refer to subsections of the Palo Alto Municipal Code (PAMC). A. Density and Intensity Standards Current density/intensity maximums are one of the major items restricting housing production, according to architects and developers interviewed, and to the quantitative analysis of housing opportunity sites completed for Downtown.4 The following zoning revisions seek to remove constraints and provide incentives for residential development. 1. Modify PAMC Chapters 18.16 (Neighborhood, Community and Service Commercial District), 18.18 (Downtown Commercial District), 18.34 (Pedestrian and Transit Oriented Development [PTOD] Combining District) to eliminate residential density standards in the CD-C, CC(2), CN, CS, and PTOD districts Knight Frank, 2018. Greater San Francisco Office Market. Research 2Q 2018 http://www.ngkf.com/Uploads/FileManager/2Q18-San-Francisco-Office-Market_1.pdf. 4 Dyett & Bhatia and EPS. “Downtown Development Evaluation: Residential Capacity and Feasibility Analysis” October 30, 2017. <https://www.cityofpaloalto.org/civicax/filebank/documents/64477> City of Palo Alto Planning & Community Environment Department Page 8 Current Standard: The zoning code currently regulates density in two ways: residential density (dwelling units/acre) and intensity (FAR). Maximum residential density standards for the City’s commercial districts are shown in Table 1. Table 1: Existing and Proposed Residential Density Standards, by Commercial Zoning District Maximum Residential Density (du/acre) CD-C (Downtown) CC(2)/PTOD (Cal Ave.) CN District (El Camino) CS District (El Camino) Existing 40 40 (50 w/BMR units) 15 (20 for Housing Element sites) 30 Proposed -- -- -- -- Source: City of Palo Alto Municipal Code and Planning and Community Environment (PCE) Department, August 2018. The following Housing Element policy supports Idea #1: H2.2.8: Assess the potential of removing maximum residential densities (i.e. dwelling units per acre) in mixed use zoning districts to encourage the creation of smaller housing units within the allowable Floor Area Ratio (FAR), and adopt standards as appropriate. How the Current Standard Affects Development: Residential density can be an imperfect metric on which to consider a project’s potential impact, since density values vary based on the number of units. These values do not reflect the unit size or number of bedrooms in a project— metrics that relate more closely to population density. As a result, a proposed development that may otherwise fit into the allowable developable envelope (i.e., based on lot coverage, setbacks, and height and other standards) may have to propose larger units and/or more bedrooms in order to meet the density standard, as alluded to in the Downtown Development Cap residential study and described by stakeholders.5 This can directly affect affordability since larger units and lower density projects carry higher rents. Potential Benefits and Impacts: Eliminating residential density standards would allow more flexibility for developers to increase the overall unit count without affecting the massing or design of a project. A density standard would still be retained in the form of FAR. As a metric, FAR values can be more easily illustrated and compared between projects to demonstrate the relationship between total floor area and the site area, and the resulting massing. This change could modestly increase the number of units proposed and the affordability of those units without impacting the massing and bulk of a project. As an alternative, the City could require a minimum density threshold. Such a standard could ensure that a minimum number of units can be achieved, but it could also prevent a site from developing altogether if the minimum density is not achievable. 5 Dyett & Bhatia and EPS, 2007; and City of Palo Alto. Housing Work Plan 2018 Comp Plan/Housing Ordinance: Stakeholder Interview Summary, June 2018 (Attachment A) City of Palo Alto Planning & Community Environment Department Page 9 2. Modify PAMC Chapter 18.13 (Multiple Family Residential) to establish a minimum density of 8 du/acre and increase the maximum density standard in the RM-15 district from 15 to 20 du/acre to match the Housing Element standard Current Standard: The RM-15 district allows a maximum density of 15 units per acre, and does not regulate a minimum density. For example, on sites that are 5,000 square feet or greater, two units are allowed. However, the Housing Element identifies a realistic capacity of 20 units per acre for RM-15 sites, meaning that Housing Element sites that are zoned RM-15 must achieve a minimum density of 20 units per acre unless other sites (or replacement units) are identified. The following Housing Element policy supports Idea #2: Policy H2.1.3: Amend the zoning code to specify the minimum density of eight dwelling units per acre in all RM-15 districts. Consider amending the zoning code to specify minimum density for other multifamily zoning districts, consistent with the multi-family land use designation in the Comprehensive Plan. How the Current Standard Affects Development: As described in idea #1 above, residential density maximums may constrain both unit yield and affordability. Potential Benefits and Impacts: Increasing the residential density maximum would make the allowed densities in the Housing Element and district regulations consistent and provide an opportunity for some increased density. Setting a low floor for the minimum density at eight dwelling units per acre ensures that sites will not be underutilized, while not creating a burden on property owners and developers. This change could incrementally increase the number of units proposed and the affordability of those units, without impacting the massing and bulk of a project. 3. Modify PAMC Chapters 18.16 (Neighborhood, Community and Service Commercial District)and 18.18 (Downtown Commercial District) to allow residential development to utilize all existing FAR allowance (i.e., including existing non-residential allocation) Current Standard: The zoning code currently regulates allowable development intensity separately for residential and commercial uses, and generally allows the highest intensities for hotel and commercial uses, as shown in Table 2. In the Downtown and California Avenue areas, these commercial uses can achieve twice as much FAR as residential uses can. The code also requires a certain amount of ground-floor commercial development in each district. In the CD-C district, there is no specified FAR standard for the commercial component. However, in the CD-C/Ground Floor (GF) combining district, all ground-floor frontage must be commercial; residential is not permitted on the ground floor. The Comprehensive Plan and Housing Element provide policy support for Idea #3: Program L2.4.4 Assess non-residential development potential in the Community Commercial, Service Commercial and Downtown Commercial Districts (CC, CS and CD) City of Palo Alto Planning & Community Environment Department Page 10 and the Neighborhood Commercial District (CN), and convert non-retail commercial FAR to residential FAR, where appropriate. Conversion to residential capacity should not be considered in Town and Country Village.6 Policy L-2.4.7: Explore mechanisms for increasing multi-family housing density near multimodal transit centers. Policy H2.1.1: To allow for higher density residential development, consider amending the Zoning Code to permit high-density residential in mixed use or single use projects in commercial areas within one-half a mile of fixed rail stations and to allow limited exceptions to the 50-foot height limit for Housing Element Sites within one-quarter mile of fixed rail stations. Table 2: Existing and Proposed FAR Standards, by Commercial Zoning District Maximum Intensity (FAR) CD-C (Downtown) CC(2)/PTOD (Cal Ave.) CN District (El Camino) CS District (El Camino) EXISTING Residential Mixed Use Residential 1.0 1.0 0.5 0.6 Commercial (Max.) 1.0 0.25-0.35 0.5 0.4 Ground Floor Commercial (Min.) n/a (except GF overlay) 0.15-0.25 0.15 0.15 Subtotal Mixed Use 2.0 1.25 1.0 1.0 Non-Residential Commercial FAR 1.0 2.0 0.4 0.4 Hotel FAR 2.0 2.0 2.0 2.0 Bonus and/or TDR 1.0 0.5 N/A N/A Total Maximum FAR 3.0 1.5 0.9 1.0 PROPOSED Residential Mixed Use Residential 2.0 1.1 1.0 1.0 Commercial (Max.) No Change Ground Floor Commercial (Min.) n/a (except GF overlay) 0.15-0.25 0.0 0.0 Subtotal Mixed Use No Change Non-Residential Hotel FAR No Change Commercial FAR No Change Bonus and/or TDR No Change Total Maximum FAR No Change 6 Town and Country Village is located in the CC district and would not be affected by the proposed change. City of Palo Alto Planning & Community Environment Department Page 11 Source: City of Palo Alto Municipal Code and Planning and Community Environment Department, August 2018. How the Current Standard Affects Development: The Downtown Development Cap residential study identified FAR standards as one of the greatest obstacles to residential development. Current market trends support higher density residential uses. However, ground-up new construction will need to support the high cost of construction, as well as overcome the value of any existing use on the site. The report concludes that a ground-up project generally must at least double the existing residential density/intensity to overcome the high value of simply maintaining and earning income from an existing use.7 Stakeholders generally agreed with this assessment; FAR was cited by stakeholders as one of the top two constraints to development.8 Potential Benefits and Impacts: This idea would allow residential development to achieve the total FAR that is currently allowed for mixed use projects. It would not reduce the amount of commercial FAR allowed in a non-residential only development, nor would it affect ground- floor retail and/or commercial requirements in the Downtown or California Avenue areas, which have the highest concentrations of retail. Idea #11, below, explores a concept that would eliminate the ground-floor commercial requirement and retail preservation requirements on El Camino Real in certain locations between key retail nodes. Allowing residential FAR to compose the entire mixed use FAR allowance would remove some of the disincentive that currently exists for residential development compared with commercial development, due to construction costs, lease rates, and development standards. This change would not increase the total amount of development currently allowed by the code, but may incrementally increase the amount of future residential development, and therefore decrease the amount of new commercial development. B. Open Space Standards On-site open space is an important factor in supporting livability in higher density residential areas, but current standards are applied inconsistently across districts and housing types. Standardization can clarify what is expected of developers, while flexibility in where open space may be located can provide opportunities to develop sites with the allowable massing and unit density. 4. Modify PAMC Chapters 18.16 (Neighborhood, Community and Service Commercial District) and 18.18 (Downtown Commercial District) to allow rooftop open space to qualify as usable open space for multi-family residential or residential mixed-use projects in the CD-C, CC(2), CN and CS districts (El Camino only), except on sites abutting single-family residential uses or zoning districts. Current Standard: The zoning code requires open space for residential uses in the City’s commercial district. The code defines usable open space to include outdoor areas on the 7 Dyett & Bhatia and EPS, 2007. 8 Stakeholder Interview Summary, 2018. City of Palo Alto Planning & Community Environment Department Page 12 ground floor, roof, balcony or similar locations. However, the code explicitly excludes rooftop gardens from qualifying as open space in the CD-C, CC(2), CN and CS districts. The Housing Element generally supports more flexible development standards to facilitate innovative housing solutions: Program H3.1.7: Ensure that the Zoning Code permits innovative housing types such as co-housing and provides flexible development standards that will allow such housing to be built, provided the character of the neighborhoods in which such housing is proposed to be located is maintained. How the Current Standard Affects Development: Current standards necessitate that open space is located on the ground floor, balconies, or similar locations that could be used for other uses, including residential space. Along with other development standards, such requirements can reduce the development “envelope” available on a site, especially on small sites, which can make site planning a challenge. Potential Benefits and Impacts: In areas of the City designated for higher density multi-family housing, options for how to configure the massing and site plan for a project can help maximize the number of units that are appropriate for a site. Moreover, rooftop decks in a climate such as Palo Alto can offer an amenity for residents to take advantage of views and community outdoor space. To address issues of privacy, noise, visibility, odors, and safety, the following standards and guidelines are proposed for consideration by the public, Architectural Review Board (ARB) and PTC. Staff intends to discuss these design-related concepts with the ARB in late September/early October:  Setbacks: Set back open space and required railings a minimum of 5 feet from all edges of the building to reduce visibility from the public right-of-way and adjacent buildings, and minimize privacy impacts.  Access: Locate access/means of egress (i.e., stairway and/or elevator penthouse) away from the building edge to the extent feasible or sufficiently screen to minimize visibility from the public right-of-way and adjacent buildings, and reduce privacy impacts.  Lighting: Any lighting shall be provided with cutoff fixtures that cast downward-facing light or low-level string lights. Photometric diagrams must be submitted for review by staff or decision-makers to ensure no spillover impacts into windows or openings of adjacent properties. Rooftop lighting shall not be visible from the ground level. (Also, note existing performance standards in PAMC Chapter 18.23.) Flexibility in how open space is configured provides options for site planning and may incrementally increase unit yield and, in turn, affordability. City of Palo Alto Planning & Community Environment Department Page 13 5. Modify PAMC Chapters 18.16 (Neighborhood, Community and Service Commercial District) and 18.18 (Downtown Commercial District) to eliminate tiering of open space requirements; provide a single requirement, regardless of the number of units. Current Standard: As shown in Table 3, the CN, CS, and CC(2)/PTOD districts identify tiered standards for open space based on the number of units in the residential project, with a substantial jump for projects with six or more units. The CD-C and CC(2)/PTOD districts tier the standards inversely, with a larger standard for smaller projects, for reasons that are not clear. The existing code provides some flexibility in that usable open space may be provided in any combination of private and common open space. The code also requires a minimum dimension of six feet for private open space and 12 feet for common open space, to ensure that spaces are truly usable. (No changes to these minimum dimensions are proposed.) Table 3: Existing and Proposed Open Space Standards, by Commercial Zoning District CD-C (Downtown) CC(2)/PTOD (Cal Ave.) CN District (El Camino) CS District (El Camino) Existing Open Space <5 units: 200 sq. ft./du 6+ units: 150 sq. ft./du <5 units: 200 sq. ft./du 6+ units: 100 sq. ft./du or less w/BMR units <5 units: 20 sq. ft./du 6+ units: 150 sq. ft./du <5 units: 20 sq. ft./du 6+ units: 150 sq. ft./du Proposed Open Space 100 sq. ft./du 100 sq. ft./du 150 sq. ft./du 150 sq. ft./du Existing Landscaping (Minimum) 20% n/a 35% 30% Proposed Landscaping (Minimum) No change Source: City of Palo Alto Municipal Code and Planning and Community Environment Department, August 2018. How the Current Standard Affects Development: Layers of development standards make interpreting the City’s code complicated and may reduce the development “envelope” available on a site. While these regulations are based on reasonable community desires (e.g., providing access to light, air, landscaping, and outdoor space), in combination they have the drawback of constricting the developable site area and therefore potential unit yield on a site. Potential Benefits and Impacts: Providing a single standard for each district—regardless of how many units are on the site—simplifies the code and eliminates any bias for projects that are choosing between proposing five or six units. This concept maintains required landscaping areas, reduces the requirement in the Downtown and for small projects on California Avenue District, and increases the requirement for small projects on El Camino Real. Smaller open spaces in the Downtown and California Avenue District reflect higher land values in these Example Standards from Other Cities Mountain View: 40 sq. ft./du Emeryville: 60 sq. ft./du Redwood City: 300 sq. ft./du San Carlos: 100 sq. ft./du (private); 15% of site area (common) City of Palo Alto Planning & Community Environment Department Page 14 locations and existing access to other amenities include existing parks, streetscapes, and community services. C. Parking Requirements Parking supports the convenience of getting to and from work, home, shopping, and other destinations. However, the findings in the Fehr & Peers study suggest that the City’s local parking requirements may be set too high for multi-family housing. To better align incentives for residential development, these revisions seek to better match supply with actual demand. 6. Modify PAMC Chapter 18.52 (Parking and Loading Requirements) to adjust parking requirements as follows: a. Align multi-family residential parking requirements with anticipated demand based on empirical data (see Table 4) b. Maintain parking requirements for single- and two-family residential uses. Current Standard: Parking standards are regulated by use, not district, such that the multi- family residential uses are the same across each residential and commercial district. As shown in Table 4, standards do vary by unit size (i.e., number of bedrooms) and use type (see bullet list below). The one location-based adjustment is for projects in proximity to transit. As noted in Table 4, specific project types are eligible for reductions:  Senior Housing: up to 50% reduction, subject to approval of a parking analysis;  Affordable Housing: up to 40% reduction depending on level of affordability and proximity to transit, support services and traffic demand management (TDM) measures;  Housing Near Transit: up to 20% reduction with approval of a TDM program;  Mixed Use Projects: up to 20% reduction with approval of shared parking; and  These reductions may be combined as long as in total no more than a 30% reduction of the total parking demand otherwise required occurs, or no less than a 40% reduction for affordable housing projects, or no less than 50% reduction for senior housing projects. TDM plans are required to reduce and manage single-occupant vehicle trips of an applicant in the following circumstances:  Projects that generate 50+ net new weekday or weekend peak hour trips;  Projects claiming a reduction in net new trips due to proximity to public transit or the implementation of a TDM plan; and  Projects requesting a parking reduction, including for affordable housing and housing near transit, as described above. City of Palo Alto Planning & Community Environment Department Page 15 Table 4: Existing and Proposed Parking Standards for Multi-family Residential Uses Use/Unit Type Existing Proposed State Density Bonus Law (1) Studio 1.25 1 1 1-Bedroom 1.5 1 1 2+ Bedroom 2 2 2 Guest 1+10% of total units included above n/a Senior Housing up to 50% reduction 0.75/unit, plus up to 50% reduction 0.5 Affordable Housing 20-40% reduction no change to reduction; reserved parking, if provided, limited to 1 space/du to maximize availability see above Housing Near Transit up to 20% reduction no change 0.5-1 Mixed Use Projects up to 20% reduction no change n/a (1) SDBL defines housing near transit; where ranges are reported, ratio depends on bedroom count. Source: City of Palo Alto Municipal Code and Planning and Community Environment Department, August 2018; Fehr & Peers, City of Palo Alto Multi-Family (Rental) Residential Development Parking Rate Study, July 2018. The following Housing Element policy supports Idea #6: Policy H3.3.7: Prepare a local parking demand database to determine parking standards for different housing uses (i.e. market rate multifamily, multifamily affordable, senior affordable, emergency shelters etc.) with proximity to services as a consideration. Adopt revisions to standards as appropriate. How the Current Standard Affects Development: According to developers and architects that are active in Palo Alto, parking requirements are one of the standards with the greatest effects on site planning and creating viable projects in Palo Alto due to a combination of required number of spaces, drive aisle width, and back-up distance. These stakeholders believe that the City’s multi-family housing parking ratios require parking supplies that exceed demand.9 These qualitative findings are corroborated by quantitative analysis. The City engaged Fehr & Peers, a transportation consulting firm, to conduct a study of parking demand in multi-family rental developments in Palo Alto. These developments included market rate, affordable, and senior housing projects at sites located at varying distances to transit. The updated report is included as Attachment C. The study observes the following trends:10  The lowest per bedroom parking demand rates were observed at the senior housing and affordable complexes and the highest at a market rate complex. 9 Stakeholder Interview Summary, 2018. 10 Fehr & Peers. City of Palo Alto Multi-Family (Rental) Residential Development Parking Rate Study. July 2018. City of Palo Alto Planning & Community Environment Department Page 16  Nearly all of the sites surveys have fewer parking spaces than are required by the code (based on code-permitted reductions); yet supply still exceeds demand.  Parking requirements exceed peak parking demand in the developments surveyed. Potential Benefits and Impacts: Finding the right balance between parking demand and supply helps to ensure sufficient parking availability, without causing spillover impacts into surrounding neighborhoods. Housing developments that have more parking than is needed add unnecessary construction costs and therefore contribute to the cost of housing. Efforts to better align parking to housing type, proximity to transit, and geography, could reduce these costs and increase housing opportunities without impacting surrounding neighborhoods from spillover parking. Coincidentally, these parking requirements are generally in line with State Density Bonus Law parking allowances, as shown in Table 4. While unbundled parking—where parking spaces are required to be leased separately from units—is often used as a way to discourage car ownership or attract tenants that do not own cars, it is not proposed here. Due to community concerns about spillover parking onto the street, the City’s policy should not discourage tenants from parking within their residential complex. Aligning supply and demand would help set the right amount of parking based on use and location, and free up space to be used for additional housing units, community space, or other amenities. 7. Modify PAMC Chapter 18.52 (Parking and Loading Requirements) to exempt the first 1,500 sq. ft. of ground-floor retail from parking requirements citywide to relieve physical and financial constraints of providing retail. Current Standard: Most residential uses are required to be part of mixed use developments in the CD-C, CC(2), CS, and CN districts. Typically, this commercial component is ground floor retail use, given the Retail Preservation Ordinance and especially, given retail requirements of the GF combining district. The parking requirements for ground-floor retail are as follows for citywide locations, Downtown, and California Avenue:  Retail: 1/200 – 1/350 sq. ft.  Eating and Drinking Services: 1 space for each 60 gross sq. ft. of public service area, plus 1 space for each 200 gross sq. ft. for all other areas.  California Avenue Assessment District: 1/240 to 1/350 spaces/sq. ft. for retail and 3/100 to 1/155 spaces/sq. ft. for Eating and Drinking Services  Downtown Assessment District only: blended rate of 1/250 sq. ft. for all non-residential uses How the Current Standard Affects Development: According to the stakeholder interviews, provision of parking for the commercial portion of mixed use residential buildings can be City of Palo Alto Planning & Community Environment Department Page 17 challenge to making a project viable.11 Assuming a typical, moderately-sized 2,000-square foot tenant space, these parking requirements would necessitate six to ten spaces for a retail tenant and 24 spaces for a sit-down restaurant tenant (assuming 60% of the tenant space is used for public service). Given parking dimension requirements in Section 18.54.070 of the City’s code, as well as drive aisle and backing out requirements (totaling approximately 300 square feet/space), a 2,000-square foot tenant space could necessitate an additional 1,700 to 7,000 square feet of area to accommodate these parking needs depending on the use and parking configuration—potentially more than two or three times the size of the tenant space itself. Structured parking areas are generally not leasable area, and therefore take the place of space that could be used for leasable retail, residential, or other uses. Potential Benefits and Impacts: Exempting a portion of ground-floor retail from parking requirements would help to relieve physical and financial constraints, and instead provide an incentive for including retail uses in a project. This concept minimizes spillover parking impacts by limiting the exemption to 1,500 sq. ft. (which could equate to four spaces for a retail use to 18 spaces for a high-intensity eating and drinking establishment). D. Project Review Process How a use is approved by the City, whether it is permitted through an administrative (staff- level) approval or a public review process, can present an incentive or disincentive to its development. These revisions seek to streamline the review process, while still providing opportunities for public and decision-maker input. 8. Modify PAMC Chapters 18.16 (Neighborhood, Community and Service Commercial District) and 18.18 (Downtown Commercial District) to eliminate Site & Design Review with the PTC and Council for residential and residential mixed use projects: a. Require Architectural Review by the Architectural Review Board. b. Maintain staff review, and the noticing and appeal hearing process to provide opportunities for public input. Current Standard: Currently, residential mixed use projects of ten or more dwelling units in the Downtown and on El Camino Real require Site and Design Review which includes design review by the Architectural Review Board (ARB) and PTC, who each make a recommendation to the City Council. The Architectural Review process includes consideration of a project with respect to Context- Based Design Criteria that seek to address the following items when reviewing proposed development: 11 Stakeholder Interview Summary, 2018. Residential Design Review Process Downtown and El Camino Real (CD-C, CN, CS):  Mixed use projects with fewer than 10 units: Architectural Review w/ ARB  All other projects: Site & Design Review w/ PTC, ARB, and Council City of Palo Alto Planning & Community Environment Department Page 18  Relationship between the site's development to adjacent street types, surrounding land uses, and on-site or nearby natural features;  Scale and mass consistent with the pattern of achieving a pedestrian oriented design;  Design that promotes pedestrian walkability, a bicycle friendly environment, and connectivity through design elements;  Usable open space for residents and visitors; and  Parking areas that do not overwhelm the character of the project or detract from the pedestrian environment. Site and Design Review is also used to evaluate projects in environmentally sensitive areas. Development east of Highway 101 is subject to the Site and Design Review provisions of the zoning code, including performance criteria related lighting, noise, and landscaping. These criteria and the review process with decision-makers aim to maintain and restore environmental quality of the Baylands, ensure fencing, signage, materials and colors are compatible with the area, and preserve views of the horizon line. How the Current Standard Affects Development: The public review process provides opportunities for community input and feedback from decision-makers, but also adds time, expense, and uncertainty from the perspective of applicants, which may affect their decision to pursue a development in Palo Alto. The combination of Site & Design Review and Architectural Review requires at least three meetings, though five meetings are typical for substantial projects. Applicants can expect this process to take 9 to 15 months; then, they can start the building permit review process. One exception to this procedure is for residential mixed use projects with nine or fewer units, which only require Architectural Review by the ARB (at least one meeting, though three meetings are typical for substantial projects). Potential Benefits and Impacts: Streamlining the review process by maintaining Architectural Review and eliminating Site & Design Review would maintain opportunities for public input and maintain project review of context-based design criteria, but eliminate the burden placed on projects to undergo review by three separate bodies. Opportunities for appeal would be maintained. 9. Modify PAMC Chapter 18.16 (Neighborhood, Community and Service Commercial District) to incorporate bonus height and density provided in Chapter 18.34 (Pedestrian and Transit Oriented Development [PTOD] Combining District) for certain types of projects: a. 100% affordable housing projects at a maximum of 80% of Area Median Income (excluding manager’s unit and any incidental community, non-profit, or commercial retail space) City of Palo Alto Planning & Community Environment Department Page 19 Current Standard: Around the California Avenue District, if property owners want to increase the intensity of a site and pursue the PTOD overlay, first they must undergo a rezoning to define the uses and intensities. The overlay application is reviewed and approved by the PTC and Council. Concurrently, the ARB conducts Architectural Review of the project design. How the Current Standard Affects Development: To pursue this process, at a minimum, there are three public meetings, though again, five meetings could be expected. Only two applicants have sought out this rezoning since its inception in 2006 and the resulting projects provided very few housing units (a total of 12 dwellings). Potential Benefits and Impacts: This concept aims to allow 100% affordable housing projects at a maximum of 80% of Area Median Income to receive the density and height benefits of the PTOD designation by right. In other words, this density and height increases would be codified in the base zoning district rather than requiring a separate legislative action by the PTC and Council to apply the overlay. The Architectural Review process by the ARB would be maintained to allow opportunities for public input and maintain project review of context-based design criteria. However, the process would provide an advantage to affordable housing projects by eliminating the burden of legislative action. Opportunities for appeal would be maintained. Notably, for a project proposing bonus density under State Density Bonus Law, this would increase the FAR for the base project on which the bonus density is assessed, such that FAR could be somewhat higher for a density bonus project. Likewise, this would increase the maximum FAR allowable for a project seeking streamlined review under SB35, which requires a City to ministerially approve projects that are consistent with the zoning code and that meet certain affordability requirements. E. Use Regulations/Mixed Use Requirements Residential uses are generally only permitted as part of mixed use developments in the Downtown, California Avenue, and many places along El Camino Real. This presents a challenge to affordable and market-rate housing developers who are not in the retail business from both financial and physical development standpoints. While ground-floor retail has been identified as a clear priority by the City Council, these revisions seek to identify project types and locations where 100% residential projects could be prioritized. California Avenue CC(2)/PTOD Process  Rezoning to PTOD: PTC recommends and establishes limits on allowable or required uses, and intensity.  Council approves rezoning  Major architectural review w/ ARB City of Palo Alto Planning & Community Environment Department Page 20 10. Consider modifying Chapter 18.40.180 (Retail Preservation) to exempt the following types of projects from the Retail Preservation Ordinance: a. 100% affordable projects (excluding manager’s unit) Current Standard: In 2017, the City Council adopted a Retail Preservation Ordinance that protects retail and retail-like uses from conversion to non-retail uses on a citywide basis. The purpose of the ordinance is to retain neighborhood-serving retail for residents, avoid the loss of sales tax revenue, prevent the higher lease rates from office uses from driving up lease rates for retail uses, and prevent private ground-floor office uses from detracting from neighborhood retail environments. In general this means that retail space must be replaced on an equal square foot basis when a property redevelops. The zoning code allows for waivers and adjustments, subject to approval by the Planning Director, for reasons of economic hardship or demonstration of an alternative viable active use. How the Current Standard Affects Development: According to market rate and non-profit developers, retail requirements can present a challenge to affordable and market-rate housing developers who are not in the retail business—from both a financial standpoint—their financing often does not include commercial development—and physically, since retail and residential have different building code requirements, necessitating additional ingress/ egress, mechanical and plumbing systems, and separate access and circulation for residents’ security. These factors can reduce residential unit yield on a given site, which makes a project more expensive and therefore reduces affordability.12 Staff and consultants conducted 24 informal interviews between November 2016 and January 2017 with developers/property owners, small retail/personal service business owners or store managers, architects, and residents to solicit feedback on retail preservation policies. Many stakeholders tended to favor more flexibility in finding tenants, based on current market conditions, and expressed concern about a proliferation in vacant spaces. Several stakeholders thought that protections should only be placed on University Avenue and the intersecting side streets Downtown and potentially on California Avenue, where the retail markets are strongest. Property owners 12 Stakeholder Interview Summary, 2018. 801 Alma, a 50-unit affordable housing development, was originally conceived to include ground-floor retail. However, the financing and logistics proved too complicated; ultimately, a 100% residential project was approved and constructed. City of Palo Alto Planning & Community Environment Department Page 21 and developers interviewed and/or who had requested waiver/exceptions have identified challenges in leasing retail spaces in less prime locations, including areas further from the main corridors of University Avenue, and on El Camino Real, despite at times lowering lease rates.13 Potential Benefits and Impacts: These retail protections have the benefit of preventing the conversion of retail uses and therefore preclude office uses from occupying these spaces, which was a key intent of the ordinance. However, the ordinance has an unintended consequence of preventing ground-floor residential uses where they may be viable and in some cases a better use than retail. Retail protection and affordable housing production are two key policy priorities in the city. To balance this tradeoff, this idea would provide a narrow exemption of the Retail Preservation Ordinance for affordable housing developments on sites outside of the GF overlay Downtown and which do not front California Ave. 11. Consider modifying PAMC Chapters 18.40.180 (Retail Preservation) and 18.16 (Neighborhood, Community and Service Commercial District) to allow 100% residential uses on El Camino Real between commercial nodes, consistent with the South El Camino Real Design Guidelines: a. Provide standards/guidelines for how to maintain ground-level interest b. Consider exempting these sites from the Retail Preservation Ordinance Current Standard: Use regulations in the zoning code generally only permit multi-family residential uses as part of mixed use developments in the Downtown, California Avenue, and many places along El Camino Real. The requirement for mixed use was a result of a fairly recent zoning text change; previously, multi- family residential housing use was allowed as a stand-alone use in some commercial zones, such as the CS zone along El Camino Real. The Housing Element provides support for high density nodes, though it is not explicit about types of uses. The Comprehensive Plan identifies an approach that is potentially inconsistent with the idea proposed here: Policy L-4.4: Sites within or adjacent to existing commercial areas and corridors are suitable for hotels. Give preference to housing versus hotel use on sites adjacent to predominantly single-family neighborhoods. Program H2.1.10: As a part of planning for the future of El Camino Real, explore the identification of pedestrian nodes (i.e. “pearls on a string”) consistent with the South El Camino Design Guidelines, with greater densities in these nodes than in other areas. 13 City of Palo Alto. City Council Staff Report: Retail Preservation Ordinance (First Reading). February 13, 2017 https://www.cityofpaloalto.org/civicax/filebank/documents/55798 South El Camino Real Design Guidelines’ nodes and corridors concept City of Palo Alto Planning & Community Environment Department Page 22 How the Current Standard Affects Development: See Idea #10 above. Potential Benefits and Impacts: The South El Camino Real Design Guidelines acknowledge that a continuous pedestrian-oriented environment along the 2+-mile corridor of El Camino Real is unrealistic.14 Instead, the guidelines describe a “node” concept to focus investment in areas with existing pedestrian amenities, retail uses, and good transit access. To create an attractive, active appearance for residential development on the ground-floor, while also maintaining privacy for residents, design standards and guidelines would be required. For examples, lobby, stoops, community spaces, and work-out spaces could be located on the ground floor to create visualize interest; individual units would not be permitted to front El Camino Real. F. Other Ideas Contemplated Staff presents additional ideas for the PTC’s consideration below to facilitate Work Plan and Comprehensive Plan goals. The PTC has either reviewed these ideas at a cursory level or not at all. Some of these ideas would take more research and work on the part of staff and consultants than can be completed before year’s end when the subject ordinance is slated for approval. Staff is looking to gauge the Commission’s interest in carrying any of these ideas forward for inclusion in a future ordinance. 12. Waive fees for developments that include at least 10% of housing units designated for individuals/households with special needs at below-market levels. 15 The City already exempts 100% affordable housing projects and below-market rates units beyond City requirements from various development fees: all development impact fees, including new parks, community facilities, and traffic fees. Based on the City’s current fee schedule, these fees total $12,783 per multi-family unit.16 This idea seeks to create an incentive for below-market rate units for households with special needs by expanding the fee exemption. For a 30-unit development, this could save a project, $383,500. 13. Modify PAMC Chapters 18.16 (Neighborhood, Community and Service Commercial District) and 18.18 (Downtown Commercial District) to provide a bonus of up to 0.75 FAR and 10 feet of building height in the CD-C, CC(2)/PTOD and a bonus of up to 0.5 FAR in CN and CS districts on Camino Real, only for the following project/property types: a. 100% affordable housing projects (excluding manager’s unit) 14 City of Palo Alto. South El Camino Real Design Guidelines. May 2012: 13. 15 The Housing Element defines special needs groups as including disabled households, senior households, female- headed households, single-parent households, large family households, overcrowded households, farm worker households and homeless. City of Palo Alto. 2015-2023 Housing Element. November 10, 2014: 28. 16 City of Palo Alto. Development Impact and In-Lieu Fees. July 1, 2018. City of Palo Alto Planning & Community Environment Department Page 23 b. Consolidation of two or more lots resulting in a parcel in excess of 10,000 square feet, but no more than 0.5 acres, to enable the residential development of small sites. Current Standard: Currently, the primary way for an affordable housing development to obtain a density and/or height bonus is to propose a project under State Density Bonus Law. Existing height standards are shown in Table 5; density and FAR standards are shown in Table 2, above. According to stakeholders and the Downtown Development Cap residential analysis, development is often limited by parcel size.17 Standards such as setbacks and open space that require specific numerical metrics (e.g., 10 foot rear setback) affect small sites more acutely. As noted in the study, many multi-family residential development examples found in the market are located on large parcels, of which there are few remaining. The following Housing Element policy supports this idea: H2.1.6: Consider density bonuses and/or concessions including allowing greater concessions for 100% affordable housing developments. Table 5: Existing Height Standards, by Commercial Zoning District Standard CD-C (Downtown) CC(2)/PTOD (Cal Ave.) CN District (El Camino) CS District (El Camino) Maximum Height (feet) 50 40 (or 50 w/ BMR units or hotels) 40 50 w/in 150’ of res. zone 40 n/a 35 35 Abutting RM-40 or res. PC 50 n/a 35 50 Source: City of Palo Alto Municipal Code, August 2018. How the Current Standard Affects Development: Stakeholders acknowledge that small sites can be difficult to develop since they cannot always achieve a unit yield that makes a site viable for development. Stakeholders expressed reluctance to propose projects under State Density Bonus Law, for fear that higher densities and heights would not be supported; rather, they generally prefer to propose projects that are consistent with the zoning code in order to move through the entitlement process more quickly.18 Potential Benefits and Impacts: Assembling parcels is challenging in Palo Alto, given the price of land and disparate ownership stakes throughout the city. An FAR of 0.5 to 0.75 and/or 10-foot height bonus would allow for an additional floor of residential development and may provide a real incentive to complete a deal for a site that is appropriate for development. Notably, for an applicant proposing a bonus density under State Density Bonus Law, this would increase the FAR for the base project on which the bonus density is assessed, such that FAR could be even higher for a density bonus project. Likewise, this would increase the maximum 17 Dyett & Bhatia and EPS, 2007. 18 Stakeholder Interview Summary, 2018. City of Palo Alto Planning & Community Environment Department Page 24 FAR allowable for a developer seeking streamlined review under SB35, which requires a City to ministerially approve projects that are consistent with the zoning code and that meet certain affordability requirements. To alleviate concerns about heavy massing on small sites, and related traffic and parking concerns, the lot consolidation incentive is bracketed to encourage assembly of sites that results in a site greater than 10,000 sq. ft., but no more than 0.5 acres in size. According to stakeholders, on El Camino Real, it is challenging for residential developers to get to the height limits of 40 and 50 feet in the CN and CS districts, respectively, based on the 50% lot coverage limit and the FAR limits of 0.5 and 0.6, respectively. Allowing an additional 0.5 FAR for these specific types of projects could allow a developer to actually achieve the height limit allowed, while not affecting daylight plane and other height requirements adjacent to residential zones. These changes could facilitate the development of sites that are currently non-viable for residential projects based on their small size and unit yield, in addition to affordable housing project specifically. 14. Within one-half mile of a fixed rail station, count multi-family residential uses or the residential component of a mixed use development at 50% square footage (i.e., effectively doubling the FAR). Notably, a project would still need to fit within the envelope determined by other required development standards. This new idea seeks to provide an incentive for residential use over the development of office or other non-residential uses. Offering double FAR can help to overcome the lower construction costs and higher lease rates of office uses. 15. Modify the Workforce Housing Overlay to accommodate a potential teacher housing project. This idea would need to be explored further as the potential project progresses. 16. Consider allowing residential uses to pay a fee in lieu of providing parking on site: c. Consider allowing housing developments to participate in the in-lieu parking program for the Downtown Parking Assessment District. d. Consider establishing a parking in-lieu fee program for California Avenue. The City’s district regulations create some bias toward development of non-residential uses over residential uses. In terms of parking, non-residential uses have the option of paying into the Downtown Parking Assessment District in lieu of providing parking on site. Given the high cost of land and the value of office lease rates, developers often choose to pay into the District and maximize their leasable area. Residential uses do not have this option. City of Palo Alto Planning & Community Environment Department Page 25 Commissioners have expressed mixed support for this idea. Additionally, some stakeholders have suggested that the current in-lieu fee would be too high for a residential developer to bear and would need to be reduced from $70,094/space in order to be a viable option. A similar parking in-lieu fee could be developed for California Avenue for both residential and non- residential uses. Relationship to Housing Work Plan/Council Referral The table below analyses how each of the ordinance framework items fits into the Housing Work Plan referral to the PTC. Table 6: Relationship between Work Plan Items and Proposed Ordinance Framework Ordinance Framework Ideas Work Plan Items Referred for PTC Input 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: #4: Allow rooftop gardens to qualify as usable open space #5: Simplify open space standards 2.4.1 Review and revise development standards (e.g. landscaping, open space) #1: Eliminate residential density standards in the CD-C, CC(2), CN, CS, and PTOD districts 2.4.2. Consider eliminating dwelling unit densities and relying on FAR and average unit sizes #10: Provide exemptions from the Retail Preservation Ordinance for 100% affordable projects #11: Allow 100% residential projects on El Camino Real, outside activity nodes 2.4.3 Review and revise permitted uses and use mix (e.g. allow 100% residential w/ground floor retail) #8: Eliminate Site & Design Review #9: Streamline PTOD regulations for 100% affordable projects 2.4.4 Review and revise level of permitting and plan review required *16: Allow residential uses to pay a fee in lieu of providing parking on site in Downtown and California Ave. *Other: Transportation Division staff are currently updating guidelines for administering, monitoring and enforcing TDM programs 2.4.5 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. #3: Allow residential development to utilize all existing FAR allowance 2.4.6 Convert some non-residential FAR to residential FAR *#12: Waive fees for special needs housing *#15: Modify Workforce Housing Overlay to accommodate a potential teacher housing project 2.4.7 Remove constraints to special needs housing *#13: Provide density bonuses for 100% 2.4.8 Increase Floor Area Ratio (FAR) in the City of Palo Alto Planning & Community Environment Department Page 26 Ordinance Framework Ideas Work Plan Items Referred for PTC Input affordable projects and lot consolidation *#14: Provide bonus density for all multi- family residential projects Downtown, California Avenue, and El Camino Real areas #2: Modify residential density standards in the RM-15 district 2.5 Support multifamily housing in the multifamily (RM) zoning districts by: i. Consider establishment of minimum densities in all RM zones ii. 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: #6: Adjust parking requirements based on empirical study #7: Exempt 1,500 s.f. of ground floor retail parking 2.6.1 Adjustment to parking requirements to reduce costs (based on an ongoing study of parking demand by housing type and location); identify the appropriate amount of parking for various housing types and locations, taking into account parking mitigations * = Ideas listed as “Other Items for Consideration” above which would need to be pursued through separate initiatives or ordinance due to time, resource, or other constraints. Source: Palo Alto Planning & Community Environment, August 2018 Environmental Review The City Council certified a Final EIR (http://www.paloaltocompplan.org/wp- content/uploads/2017/08/PaloAltoCompPlanFEIR_Aug2017.pdf) on November 13, 2017 to analyze potential impacts associated with the updated Comprehensive Plan. The 2018 Comprehensive Plan Implementation and Housing Ordinance will be evaluated pursuant to the California Environmental Quality Act (CEQA) once a draft ordinance is prepared. It is anticipated that the Ordinance will be consistent with the Comprehensive Plan and its Final EIR. At this 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 An anticipated timeline for development of the ordinance is provided in the table below. Table 7: Project Timeline Meeting Type Topic Date PTC Study Session Review objectives for housing work plan and city council direction March 14 (completed) PTC Study Session Overview of issues, including key findings from an analysis of residential capacity in Downtown April 25 (completed) City of Palo Alto Planning & Community Environment Department Page 27 PTC Study Session Parking, including key findings from an analysis of residential parking demand May 30 (completed) Community Meeting Present and receive feedback on ordinance framework ideas June 28 (completed) PTC Study Session Framework for ordinance August 29 ARB Hearing Review of rooftop open space design standards September 20 PTC Hearing Review Draft Ordinance September 26 PTC Hearing (continued, if needed) Recommendation on Draft Ordinance (as revised) October 10 City Council Hearing Draft Ordinance (First Reading) November 13 Report Author & Contact Information PTC19 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: Housing Work Plan_Stakeholder Summary (DOCX)  Attachment B: Housing Work Plan_Community Open House Summary (DOCX)  Attachment C: Revised Multifamily Parking Report (PDF)  Attachment D: Massing Studies by Use (PDF) 19 Emails may be sent directly to the PTC using the following address: planning.commission@cityofpaloalto.org 1 City of Palo Alto - Housing Work Plan 2018 Comp Plan/Housing Ordinance STAKEHOLDER INTERVIEW SUMMARY This memo summarizes findings from 16 stakeholder meetings (22 individuals) conducted in April and May 2018. The list of stakeholders is provided in Appendix A. An overarching summary and key findings by topic are provided below, along with excerpted quotations from the interviews. SUMMARY OF FINDINGS Generally, stakeholders agreed with the direction of the Council referral, including streamlining the review process and reducing zoning constraints. Density and parking were cited as the major constraints to configuring a site in terms of site planning, massing, and the number of units attainable. There was a general sense that the current zoning does not support the City’s stated goals of multifamily housing, and a recommendation that the City instead allow the types of developments that it wants “by right” and/or through modifications to density, parking, and related standards. Stakeholders expressed frustration about the length of time the entitlement process takes due to multiple reviewing bodies and instead recommended having one review body conduct design review based on a clear set of standards. FINDINGS BY TOPIC The following represent key findings from the stakeholder meetings. Unless otherwise indicated, these findings represent areas of consensus and/or reflect the perspectives of the majority of stakeholders. Development & Design Standards  Need more zoning flexibility, especially on small sites  There is no zoning designation that allows multifamily residential development at an economy of scale; sites are too small or standards do not allow viable densities  Parking and floor area ratio tend to be the development standards that are the most limiting to site planning and unit yield  FAR is more relevant than residential density; the latter—in addition to parking and other development standards—leads to larger units, which are less affordable; the two standards tend to complete with one another 2  Perspectives on height as a limiting factor were mixed—some stakeholders ran into limitations presented by height limits, while others were not able to achieve the height limit due to other development standard constraints; several stakeholders remarked that height can be an issue if they are trying to build a taller first floor height for retail  Desire for more flexibility in how open space requirements can be achieved—through rooftops, common, or private spaces; noise and screening can be handled  Densities and heights could be higher along University Ave., California Ave., and El Camino Real; some stakeholders also mentioned Alma Street  Perspectives on the context-based design criteria were mixed; while some stakeholders find them to be subjective and not necessarily aligned, others think that they provide flexibility for the designer and are not overly prescriptive compared to other nearby communities  A few stakeholders noted site planning constraints when addressing city transformer location requirements and removal of specimen trees. Parking  Required parking ratios do not reflect demand  Parking requirements are high compared to nearby communities and tend to drive site planning, commercial floor area, and unit yield  Parking ratios should account for proximity to Caltrain stations and reductions for bike parking and shared parking  Parking requirements should be more flexible in Downtown and Cal Ave. where there is less demand and higher costs; ideas include: shared parking, tandem configurations, off-site locations, allowing projects to pay into the assessment districts and encouraging use of parking lifts  In addition to the number of stalls required, drive aisle requirements, back-up distances, stall sizes that can make site planning challenging Excerpts from the Interviews “Fundamental issue is disconnect between a desire for housing production in certain locations and what the zoning allows” “To meet the Housing Work Plan goals, the City needs to make it feasible; currently, it’s not.” “We don’t have zoning in this town to make multifamily development work” “Not every unit of housing is the type of housing that you would want to live in, like a micro unit; likewise some people do not want a single- family home with a yard that they have to maintain.” “We don’t need to build parking for people who don’t have cars” 3  Parking becomes a major expense when its required to go underground  Many people living in multifamily housing use alternate travel modes—Caltrain, Uber, Marguerite shuttle, etc.; they don’t need parking spaces Project Review Process  Generally, developers try to conform to the zoning standards to avoid any discretionary review, but do not have the sense that it reduces the time it takes to work through the entitlement process  Planning staff are helpful in helping applicants navigate the entitlement process  Perspectives on the Architectural Review Board (ARB) review were mixed; while many stakeholders stated that the ARB review tends to be subjective, unpredictable, and does not always provide clear direction, others acknowledge receiving useful feedback  Hearing process is too long and unpredictable; the back-and-forth between ARB, Planning & Transportation Commission (PTC) and City Council is frustrating and time-consuming; process often leads to arbitrary requests and added requirements  Commissions have too much discretion about elements unrelated to the code; hearing bodies focus on elements outside their purview  The entitlement process takes so long that the market has changed 2 to 4 years later; a project may no longer be feasible between changes in the market, construction costs, and additional requirements applied during the entitlement process  Process is too onerous to go through for small projects; need to have a sizeable project to make it worthwhile  Staff Department Review Committee happens too early in the process and tends to be boilerplate comments  On the other hand, pre-application review process and early meeting with the ARB is generally seen as valuable  Several stakeholders suggested having a staff member act as point person (across departments) to shepherd the project through the entitlement process while staying focused on the big picture project purpose Excerpts from the Interviews “I spend 10x time on my Palo Alto project compared to projects in other cities and it’s not making the project better [just more expensive]” “Construction hard costs have gone up 35% since the project started; we’re on the fence about whether it made sense to build what’s been approved” 4 Uses, including Retail Protections and Office Market  Commercial, office and R&D markets are softer than they used to be; housing demand tends not to waver, making it a good long- term investment  Little desire to participate in office cap contest; office cap may have had an effect on applications, but office market is reaching its capacity  Ground-floor retail requirements are challenging; reasons cited include: high parking requirements, displaces potential units, hard for affordable housing developers seeking tax credits; changing nature of retail makes finding a viable tenant difficult  Retail Protection Ordinance does not make sense, since it’s not market driven; tenant spaces may stay vacant  Several stakeholders recommended consolidating retail in key locations, rather than requiring it everywhere Excerpts from the Interviews “Residential development doesn’t pencil in the Downtown right now: the sites are too small, you need separate egress, stairs, and access to do residential and retail; let residential come down to first floor or office on the ground floor [which pays the rent]” “Office development is lucrative, but well- capitalized investors don’t need a quick return; developers here are in it for the long haul and will respond to the City’s pro-housing policies” 5 Appendix A: Stakeholders Interviewed 1. Architarian Design 2. Bentall Kennedy 3. Center for Continuing Study of the CA Economy 4. Eden Housing 5. FGY (Fergus, Garber, Young) Architecture 6. Golden Gate Homes 7. Hayes Group 8. Lighthouse Public Affairs 9. Mid Pen Housing 10. Palo Alto Housing 11. Sand Hill 12. Sobrato Organization 13. SV@Home 14. Thoits Brothers 15. TOPOS Architecture 16. Windy Hill 1 City of Palo Alto - Housing Work Plan 2018 Comp Plan/Housing Ordinance COMMUNITY OPEN HOUSE SUMMARY This memo summarizes findings from the community open house on housing, held on June 28, 2018 at the Downtown Public Library. Over 30 community members attended the meeting which included a presentation, open house of “idea stations” that allowed participants to interact with staff and other participants one-on-one or in small groups, and a debrief to share community members’ comments. SUMMARY OF FINDINGS Participants expressed a range of perspective on housing needs and proposed ideas to spur housing production. There was little consensus about the adopted goals of the Comp Plan, Housing Element and direction proposed in the Housing Work Plan. While some participants supported revisions to development standards and review processes to streamline housing production, others were concerned about impacts of new development on existing neighborhoods, traffic, and services. Ideas for revisions to parking regulations were the most controversial topic: some participants were concerned that reductions in parking requirements would lead to spillover parking in neighborhoods; others supported requirements that more closely matched demand, especially for populations with lower parking demand such as seniors, homeless, and low income households. There was more consensus about ideas about how to balance housing and retail; participants were generally supportive of allowing more 100% residential projects and letting retail develop where it makes sense (i.e., Downtown, Cal Ave. and other significant corridors or nodes), rather than requiring it everywhere. Likewise, while the majority of participants seemed to agree with ideas for how to streamline project review for projects that were consistent with the zoning ordinance, some participants wanted to maintain the current project review process. MEETING NOTES Density and Development Standards  Support higher density near public transportation  Consider more multi‐generational housing and consider more floor area for that type of housing  Increase floor area, height, density; especially for Below Market Rate housing but maintain high quality of architecture 2  Supportive of higher density but not at the expense of higher parking needs that can’t be met or higher open space ratios that can’t be met without rooftop open space (note: rooftop open space not great in small lot areas)  Modify R‐1 zoning to have flexibility to construct multifamily project that’s walkable to commercial/amenities  On large residential lots, have incentives to build smaller residential units (i.e. ADU)  Supportive of height increases – especially for projects with grand floor retail preservation or affordable. President’s hotel a great example of high density, taller building that works.  Rooftop open space  London – upper most floor has to be available to general public as open space  Supportive of eliminating density and increasing FAR to allow for more floors  Use FAR as metric to determine how many units are allowed  Zone for multifamily and reduced unit sizes for new demographics: fewer 4 or more person families and more 2 or even 1 person households  Map affordable housing combining district overlay onto candidate areas of city  Raise height limit! Allow 5 or 6 stories on El Camino. At least 4 stories on corridors. Cal Ave, University, Hamilton, Lytton, Alma. Allow more mass up to 50 or 100 yards in from corridors  Zone a lot of areas in city to support multifamily. Allow duplexes and triplexes on previously only – R1 lots to help “missing middle”.  Allow higher FAR for multifamily and main + ADU  I would support offering bonus for affordable projects especially to meet the needs of Developmentally Disabled  Support the ideas here, great to offer incentives + bonuses in support of affordable developments or based on percentage/level of affordability  Density in “transit rich” areas sounds good, but very few Palo Altans would brag that any part of our city (w/possible exception of University Station) is transit rich  People with intellectual + developmental disabilities would benefit from an incentive to build affordable units for extremely low income individuals, but would need open floor plans to navigate their space 3  Stanford GUP updated DEIR shows that residential uses require much more diverse access to other parts of town (school, childcare, grocery, etc.) for which our transit options are meager. How will densities be tied to more appropriate transportation options for residential projects DEIR also concluded that TDM is not very effective for those residential transportation needs. Solving the transportation problem must either precede or go in tandem with dense housing development.  To encourage housing, don’t use 2 standards, FAR + units/acre. Too restrictive. Allow FAR to be the constraint not units/acre. But really need more FAR + height to accommodate more units + affordable units  Rezone office to housing. Keep 50’ height limit and sufficient parking  Housing in Stanford Research Park and Shopping Center  Wish there was an opportunity for general public to get a primer on what the impacts of reduced standards are. How can they assess whether certain incentives are worthwhile when they only hear the benefits and not the costs/impacts?  Why aren’t ALL development/density standard reductions tied to PRIORITY project types? Impacts are born by neighbors. Why are zoning “subsidies” offered evenly to all project types, regardless of connection to community needs?  Against raising 50’ height limit in City. Maintain this throughout City. Adding density without adding the proper infrastructures (road improvements, water systems, etc.) – and schools – is bad for everyone.  Strong housing overlay to incentivize housing development over office. Keep 50’ height limit, keep parking Housing and Retail  Require housing with commercial development  Less constraints on 100% affordable residential - No requirement for retail  Need to be cautious when near Single-Family neighborhood o No parking reductions o Under parked currently  Utilize RPP in appropriate places  It would be preferable to have people live and work in Palo Alto, if not then you can’t live in Palo Alto  Strict monitoring of concessions 4  Protect retail  Exempt parking requirements for commercial use in mixed use  Encourage mixed use  Encourage 100% residential  Discourage exclusive 100% commercial  Strive for building jobs/housing balance  Mixed use or small mall between Page Mill and Charleston  Don’t let parking limit housing. Should not be driver  Increase height max  Don’t support retail that isn’t supported by market  Consider allowing denser residential density in R-1 zoning near transit Community Notes  Save President Housing!  Allow more mixed use developments – people living over retail or commercial  Do not require retail for housing other than in commercial/transit served centers such as Cal Ave, University/Hamilton/Lytton. Do not spread up and down El Camino where retail will increase parking requirements that will escalate cost of housing.  Limit ground floor retail exceptions to narrowly defined housing affordability @ up to 80% AMI is our most needed supply. Save incentives (form of public subsidy) for most needed housing.  As we incentivize housing (of any price) via our zoning code, do we have any mechanism to reign it back in if necessary? We went “big” on office last decade and now we’ve created a new “crisis” for housing. How do we avoid careening from crisis to crisis?  Do not force retail sake. The market will dictate what works and what will die. Forcing grocery stores as a requirement is not a good idea – College Terrace Market was a prime example. Put retail in the places, not all places  Compact/dense Housing is needed when office expands. o Existing housing needs to be protected because it already houses the mix which is needed for effective balance of skills o Does City have interest in retaining existing or only propose new ones? 5  Maintain the apartments at the President Hotel  Be more creative with mix use development  Strongly support Idea #1 (priority locals for retail). Identify where retail is viable, consider both affordable and market rate housing in entirety on mixed use sites  Keep the apartments at President Hotel as residential units! They provide retail below, housing for 80+ people and have historic character! o YES!!  I support the Retail Preservation Ordinance. We need to support retail – small business in town. In North Ventura there might be places for 100% residential but not along major roads (Park Blvd.)  Retail requirements only make sense if the market will support. They required a grocery at College Terrace, no one shopped there it closed. Lack of housing, much more important than forcing unsupported retail.  Require developers to provide housing for a significant % of new development  It is my opinion that structures in the City of Palo Alto that fit within the concept and vision of housing and retail should be focused on and guided towards the City’s stated goals and visions. Example: Presidential Hotel at 488 University Avenue o It has retail o It has residential (affordable) o It could have a few floors of Hotel. That seems like multi use without compromise!  If require ground floor retail for affordable housing, must allow more height/mass/units and fund parking and fill funding gaps lost because retail and extra parking eliminate eligibility for tax credits. Same for ground floor office. Eliminate retail/office and “excel” parking requirements for affordable. Parking Requirements  Concern about subsidizing public parking when residents don’t park in garage or projects do not provide sufficient parking  Housing people is more important than parking cars  Need to provide housing and accommodate parking  Need realistic regulations – don’t over park 6  Look into incentivize foot traffic residents or individuals who don’t use cars to get to work  Housing for people who don’t want to use cars, example: The President Hotel  Reduce parking  Concern about spillover parking in neighborhood  Extremely low income households don’t have cars/demand  Provide transit passes  Residents parking on-street not in their single-family home garages, reducing parking supply  Add loading space for Uber/Lyft pick-up for multi-family/disabled housing  How to deal with rental housing with more than one or two renters – where do 5 renters park? Single vs multifamily  Please don’t pretend poor people won’t own cars or won’t have visitors  Yes to using surveyed parking demand rate rather than old numbers!!! For instance, DD only use 3 (including staff & parent use)  Do not increase parking requirement for residential by requiring ground-level retail except perhaps in retail business centers such as Cal Ave & University/Hamilton/Lytton  Allow more car share cars (Zip Car) around denser areas of town so families can get rid of their second car  Don’t provide less parking than needed  How did traffic consultants decide on their recommendations? Did they survey current residents?  We need to build more for people not for cars. People’s habits are and will continue to change. Traditional parking requirements are no longer applicable and severely and negatively affect housing opportunities. Parking needs to be relaxed in the right locations, near transit.  Understanding impacts on on-street parking is fundamentally important o If impact from studied sites is low now, how will that change with cumulative additional demands created by new developments? o How does “unbundling” impact up take of on-street parking use” doesn’t it incentivize on-street parking? 7  Parking study should also account for overlap of parking claims? o Can a tenant reject unbundled parking cost in favor of an RPP permit? o Do they claim both?  Parking permit programs for new development areas: 1. People parking for their job will take fewer spaces that belong to residents 2. Residents will have to think about owning 2‐3 cars because they need to pay $X per year for each car. This is especially true for developments near public transportation  How is it possible to expand Commercial & Retail and not provide an abundance of parking? o Answer: provide mass transit from choke points: o Provide an abundance of Uber/Lyft/pickup transitional transit o On call services? o Reducing lanes does not work. But continues traffic jam longer/smog  Don’t change parking requirements. I live in a multi-residential complex at Cal Avenue – we need more parking – not less! We need at the very least one parking space for every unit  The City should care more about housing humans than cars. The City should make walkable communities that have higher density housing near transit. Disincentivise car ownership by charging for parking. Free parking adds to traffic and is bad policy  No! Have you been to Los Robles Avenue after Buena Vista put requirements on resident parking? The street is full of cars for blocks in either direction  Parking requirements keep Palo Alto from meeting its housing goals  Free parking for all developments. Residents should not have to pay for more under parked projects  Explore dincentivizing driving Project Review Process  Combine roles of ARB and PTC and ensure no loss of oversight  Yes, do things to help housing to move through the process faster  Yes, but make sure that it is for projects that are increasing housing supply (more units than any lost onsite) 8  Please consider ways of not promoting displacement of existing residents (ex, President Hotel)  PTOD projects can be helpful to individuals with developmental disabilities who are extremely low-income and rely on public transportation  Think about those with disabilities who may benefit from PTOD housing  Send notices on new housing projects to people on the affordable housing waiting list  Streamline and speed up review of single-family housing  4 years is too long! Just ARB is good because they get into site and design too! Most projects have many hearings anyway!  Yes to PTOD bonus for affordable housing. Also allow for project with say, 50% VLI or ELI  If ADU’s are actually a priority reduce fees and process so average homeowners can feasibly build them  Give developer the option for one-stop or multi-step process  Streamlining approval of housing is important to meeting goals of adding to PA’s housing stock market rate and affordable  Providing incentives for affordable developments (include 100% affordable) to streamline or increase density is important  Streamlining should be careful not to hurt neighbors or quality  Allow 4 families to purchase a tear down single-family home and build a 4-unit condo together. Change zoning near train stations to allow these o $3M teardown + $2M to build 4 units = $5M/4 families = $1.25M/family = attainable housing!  Streamline even more – still a hard process for projects to get through!  Speed up the review process for residential developments that increase supply  Increase barriers for development that eliminates or decreases housing supply  Do reduce process requirements. If project meets zoning, facilitate speed  Developers want new process – better process  Look at bigger picture – 3 boards is a lot – but we do good things!  Support streamlining so long as no big downside to quality of development. Still needs to meet zoning 9  Process is intimidating – not incentivizing! Need constructive, focused criticism process  Does City concern itself with existing dense housing which could be changed for Commercial/Hotel/Office? If 2nd story gets a special review why does city architect gets to dictate only his ideas, shouldn’t he be a local architect retained?  #1 NO!! Process should not be eliminated!!  No, absolutely not! This attempts to subvert feedback and review at the expense of devel9per expedience. What projects would actually benefit?  Eliminate process! Good authoritarian IDEA. Trump would agree  Streamlining the review process strictly for the benefit of developers is bad. The City should be serving its residents first. Citizen input is vital on projects that affect their neighborhood  No on #2 (PTOD by right). Important for people to input on PTOD projects – not by right Other  Need more senior housing  Displacement is a concern of people with disabilities  Prioritize housing for people that live and work in Palo Alto  Stronger tenant laws  City needs to stand behind tenants  Rent control & stabilization  Rental units  Affordable housing preservation  Please for “In-laws” and ADU’s lowering the cost of putting in sewer lines, etc. that can be actually “add-ons” to existing. $20,000 many years ago stopped my mother from completing an ADU which a family member could be using now. $20k is too HIGH we don’t have it! City of Palo Alto Multi-Family Residential Development (Rental) Parking Rate Study Prepared for: City of Palo Alto August 2018 SJ16-1668 Table of Contents Executive Summary ................................................................................................................................ 1 1. Introduction ........................................................................................................................................ 1 2. Available Reports and Studies ........................................................................................................... 3 3. Parking Surveys .................................................................................................................................. 9 Previous Parking Surveys ..................................................................................................................................... 9 New Parking Surveys .......................................................................................................................................... 14 Selected Survey Sites .................................................................................................................................. 14 Methodology & Results ............................................................................................................................... 18 Data Analysis ............................................................................................................................................... 22 General Observations .................................................................................................................................. 24 4. Conclusions ......................................................................................................................................25 Appendices Appendix A: Summary Tables from Previous Parking Studies Appendix B: New Parking Survey Results Appendix C: Resident Intercept Survey Results List of Figures Figure 1: Previous Parking Survey Locations ........................................................................................................... 13 Figure 2: New Parking Survey Locations .................................................................................................................. 15 List of Tables Table 1: Available Multi-Family Residential Parking Survey Results ...................................................................... 10 Table 2: Selected Multi-Family Complexes .............................................................................................................. 14 Table 3: Parking Inventories at Survey Sites............................................................................................................ 19 Table 4: New Multi-Family Residential Parking Survey Results .............................................................................. 21 Table 5: Peak Parking Demand Rates by Housing Type.......................................................................................... 24 Palo Alto Multi-Family Residential Development (Rental) Parking Rate Study August 2018 i This page is intentionally left blank. Palo Alto Multi-Family Residential Development (Rental) Parking Rate Study August 2018 ES-1 Executive Summary Fehr & Peers conducted this study to provide the City of Palo Alto with parking demand rate data for rental multi-family residential developments (apartments) including market rate, affordable, and senior housing projects at sites located at varying distances to fixed rail transit stations and/or major bus routes. The following was observed regarding the nine sites in Palo Alto and the survey results: · The Affordable Housing complexes have a higher proportion of two and three-bedroom units, the Market Rate complexes generally have more one-bedroom than two+ bedroom units, and the Senior Housing complexes are comprised of primarily one-bedroom units. · On a per-unit basis, the lowest parking demand rates were observed at the Senior Housing complexes and the highest at Affordable Housing complexes. On a per bedroom basis, the Affordable and Senior Housing sites had comparable rates while Market Rate units had the highest rates. · Resident experiences at The Marc indicate that residents prefer to park at the apartment complex instead of on the street and that residents view having available parking/empty spaces any time of day as the “right amount of parking.” (Therefore, a complex where the supply is closer to the peak demand may be viewed as having “too little” parking since vacant spaces may be hard to find or inconvenient.) Fehr & Peers used the survey results to develop parking supply rates. A conservative approach was taken to develop the rates to reflect community concerns regarding neighborhood parking intrusion. Affordable Housing: · 1.0 parking space per studio and per 1-bedroom unit · 2.0 parking spaces per 2-bedroom or larger unit Reserved parking, if provided, could be limited to one space per unit to maximize parking space availability. Market Rate Housing: · 1.0 parking space per studio and per 1-bedroom unit · 2.0 parking spaces per 2-bedroom or larger unit Reserved parking, if provided, could be limited to one space per unit to maximize parking space availability. Senior Housing: · 0.75 spaces per unit ES-2 This page is intentionally left blank. Palo Alto Multi-Family Residential Development (Rental) Parking Rate Study August 2018 1 1. Introduction This study was conducted to provide the City of Palo Alto with parking rate data for rental multi-family residential developments (apartments) including market rate, affordable, and senior housing projects at sites located at varying distances to fixed rail transit stations and major bus routes. This study includes information from available reports, documents, studies, and the results of surveys conducted as part of this study. Fehr & Peers obtained the results of previous surveys conducted at various apartment complexes in the South Bay, and included them for informational purposes. Parking supply rates based on the Palo Alto survey results are provided at the conclusion of this report. 2 This page is intentionally left blank. Palo Alto Multi-Family Residential Development (Rental) Parking Rate Study August 2018 3 2. Available Reports and Studies Fehr & Peers reviewed several reports and studies that included parking demand rates for multi-family market rate, affordable, and senior residential developments in the Bay Area near rail stations (Caltrain, Bay Area Rapid Transit (BART), and light rail transit (LRT)). Industry standard parking generation sources and studies from Los Angeles and San Diego that include parking data for affordable housing were also reviewed. These reports and studies are: · Santa Clara Valley Transportation Authority’s (VTA’s) A Parking Utilization Survey of Transit- Oriented Development Residential Properties in Santa Clara County · Metropolitan Transportation Commission’s (MTC’s) Reforming Parking Policies to Support Smart Growth · Transform’s GreenTRIP Parking Database · Robert Cervero, et al, University of California Transportation Center, UCTC Research Paper No. 882 Are TODs Over-Parked? · Los Angeles Department of City Planning’s Local Trip Generation Study · City of San Diego’s San Diego Affordable Housing Parking Study · Institute of Transportation Engineers, Parking Generation, 4th edition These reports and the general results that are applicable to parking demand rates for the City of Palo Alto are summarized in the following sections. A Parking Utilization Survey of Transit-Oriented Development Residential Properties in Santa Clara County This research project was completed by Santa Clara Valley Transportation Authority (VTA) and San Jose State University in 2010. Twelve TOD residential properties near light rail and Caltrain stations in Santa Clara County were surveyed as part of the study. (A table from this report summarizing the results included in Appendix A.) The study does not specify whether the surveyed properties are market rate, affordable, or senior housing; it is likely that they are market rate properties. The parking supply rates ranged from 1.31 to 2.31 spaces per unit with an average of 1.68 spaces per unit, whereas the peak parking demand rates ranged from 0.84 to 1.54 spaces per unit with an average of 1.31 spaces per unit. The study found that the parking supply exceeded the parking demand at every site surveyed indicating that the code requirements for the city they are located in may be too high. This research project shows overall that parking demand at residences near a transit station is less than current zoning code requirements. 4 Reforming Parking Policies to Support Smart Growth The Metropolitan Transportation Commission (MTC) developed this handbook to help city officials, politicians, and planners with the planning and implementation of parking policies and programs that will support transit–oriented development (TOD). The document is intended to allow users to explore potential parking strategies that have been shown to work in different types of communities, identify best practices about policies and programs, and establish implementation guidelines to best gain the support of the public. It includes representative parking requirements for four types of land uses in five different location types. The rates for residential units in suburban centers/town centers range from 1.00 to 1.50 spaces per unit. Although the report does not differentiate among market rate, affordable, or senior housing, it is likely that these rates are for market rate properties. TransForm’s GreenTRIP Parking Database TransForm’s GreenTRIP Parking Database (http://database.greentrip.org/) is a compilation of data gathered at approximately 80 multi-family residential sites in the San Francisco Bay Area. It includes the building location, place type (e.g. transit town center or city center), type of residence (family, senior, diverse abilities, condominium), percent of units below market rate, number of units, number of parking spaces, parking utilization, parking supply rate, parking demand rate, and traffic reduction strategies in place. The database can provide insight into why parking use fluctuates based on location, transit access, and TDM strategies. The GreenTRIP Parking Database allows data filtering for the study site parameters listed above. For the all- residential, senior housing study sites in Santa Clara County, parking demand rates range from 0.27 to 0.71 spaces per unit. For the all-residential, non-senior housing study sites that are 50 to 100% below market rate (affordable housing) in Santa Clara County, parking demand rates range from 0.96 to 1.34 spaces per unit. Some other relevant example results are: · 801 Alma in Palo Alto (0.3 miles from a Caltrain station) with 50 units, 60 parking spaces (1.20 spaces per unit), and a peak parking demand of 1.02 spaces per unit, · Madera Apartments in Mountain View (0.1 miles from a Caltrain station) with 203 units, 279 parking spaces (1.37 spaces per unit), and a peak parking demand of 0.88 spaces per unit, and · Arbor Terrace Apartments in Sunnyvale (0.2 miles from a VTA Rapid 522 stop) with 175 units, 359 parking spaces (2.05 spaces per unit), and a peak parking demand of 1.37 spaces per unit Palo Alto Multi-Family Residential Development (Rental) Parking Rate Study August 2018 5 Are TODs Over-Parked Robert Cervero at the University of California Transportation Center (UCTC) led this study with the University of California, Berkeley. The study finds that parking demand rates for residential units at transit-oriented developments (TODs) in the San Francisco Bay Area ranged from 0.74 to 1.69 spaces per unit, averaging 1.20 spaces per unit. For all surveyed sites, the average parking supply was 1.59 spaces per dwelling unit. (A table from this report summarizing the results is included in Appendix A.) The study does not specify whether the surveyed properties are market rate, affordable, or senior housing; based on a review of the survey locations, most, if not all, are market rate properties. Varying development contexts explains the range in peak parking demand rates. Well-established sites with complementary land uses (such as office, restaurant, health club, hotel, and retail uses) had lower parking demand rates, while less dense and less diverse sites had higher parking demand rates. Los Angeles Trip Generation Study In 2015 Fehr & Peers conducted a parking study in conjunction with a trip generation study for the Los Angeles Department of City Planning. The study surveyed 42 affordable housing sites inside and outside Transit Priority Areas (TPAs) in Los Angeles (20 inside a TPA, 22 outside a TPA). The study compared the observed parking demand rates to the Los Angeles Municipal Code (LAMC) parking requirements. All observed parking demand rates were lower than LAMC requirements. (A table from this report summarizing the results is attached.) Some relevant parking rates and results are: · Affordable family housing within a TPA (8 surveyed) have a parking supply rate of 1.15 spaces per unit and a peak parking demand rate of 0.85 spaces per unit · Affordable family housing outside a TPA (6 surveyed) have a parking supply rate of 1.17 spaces per unit and a peak parking demand rate of 0.82 spaces per unit · Affordable senior housing within a TPA (5 surveyed) have a parking supply rate of 0.60 spaces per unit and a peak parking demand rate of 0.44 spaces per unit · Affordable senior housing outside a TPA (8 surveyed) have a parking supply rate of 0.70 spaces per unit and a peak parking demand rate of 0.48 spaces per unit San Diego Affordable Housing Parking Study In 2011 the City of San Diego conducted a parking study for affordable housing in various contexts throughout the city. The study documented parking rates for 21 housing developments to develop a citywide parking demand model. Variables considered includes walkability, access to transit, and housing type (e.g. single-family, senior, etc.). The parking study concluded that parking demand for affordable projects is about one half of typical rental units in San Diego, with almost half of all units surveyed having 6 no vehicle. Higher parking demand was generally associated with larger unit size and higher income for affordable housing developments. (A table from this report summarizing the results is attached.) In all projects surveyed, the amount of peak parking used was less than the amount supplied. Some relevant parking rates are: · Villa Harvey Mandel Affordable Rentals located 1,500 feet from the 12th & Imperial Transit Center in San Diego with 90 units, 26 parking spaces (0.29 spaces per unit), and a peak parking demand of 0.28 spaces per unit · Windwood Village Apartments in San Diego (not located near major transit service) with 92 units, 195 parking spaces (2.10 spaces per unit), and a peak parking demand of 1.56 spaces per unit · Renaissance Senior Apartments in San Diego with 96 units, 103 parking spaces (1.07 spaces per unit), and a peak parking demand of 0.39 spaces per unit Parking Generation, 4th Edition The Institute of Transportation Engineers published Parking Generation, 4th edition in 2004 to provide parking demand rates for various land uses based on survey data collected in primarily suburban, low- density areas. While the report does not provide authoritative findings, recommendations, or standards on parking demand, it is often referenced by planners and designers in making parking supply estimations and decisions. Some relevant results are: · Low/Mid-Rise Apartment (Land Use 221) has an average weekday peak parking demand of 1.23 spaces per dwelling unit in suburban context and 0.42 spaces per dwelling unit in urban context · Residential Condominium/Townhouse (Land Use 230) has an average peak parking demand of 1.38 spaces per dwelling unit in suburban context · Senior Adult Housing – Attached (Land Use 252) has an average peak period parking demand of 0.59 spaces per dwelling unit City of Palo Alto Municipal Code The City of Palo Alto Municipal Code, Chapter 18.52 Parking and Loading Requirements outlines the current parking supply requirements for multi-family residential units. Based on Table 1 in Section 18.52.040 Off- Street Parking, Loading and Bicycle Facility Requirements, market-rate multi-family residential complexes should have: · 1.25 parking spaces per studio unit, · 1.5 parking spaces per 1-bedroom unit, · 2 parking spaces per 2-bedroom or larger unit, and · 1 guest parking space per project plus 10% of total number of units (for projects exceeding 3 units). Palo Alto Multi-Family Residential Development (Rental) Parking Rate Study August 2018 7 Additionally, the following parking supply reductions may be taken: · Housing for seniors may be reduced by up to 50% of the total spaces required for the site, subject to submittal and approval of a parking analysis justifying the reduction. · Affordable housing may be reduced by up to 20% for low income units, up to 30% for very low income units, and 40% for extremely low income and single room occupancy units. The reduction shall consider proximity to transit and support services and traffic demand management measures may be required. · Up to 20% reduction for housing near transit facilities and approval of a Transportation Demand Management (TDM) program. 8 This page is intentionally left blank. Palo Alto Multi-Family Residential Development (Rental) Parking Rate Study August 2018 9 3. Parking Surveys Fehr & Peers gathered the results of previous parking surveys for multi-family residential developments within and near Palo Alto and conducted new parking surveys. This section presents the survey methodology and results. Previous Parking Surveys The results of previous parking surveys conducted for multi-family developments in the South Bay from other Fehr & Peers studies, TransForm, and studies conducted by other consultants were compiled. Available information about each site, such as the number of units, walking distance to the nearest rail station, type of rail service, peak parking demand, and parking supply and demand rates, is presented in Table 1. Figure 1 shows the locations of each development. All developments are market-rate, except for Madera Apartments in Mountain View which has seven affordable-housing units and 196 market-rate units. Some of the developments may not be directly applicable to Palo Alto but the information can be used for comparison purposes. The parking supply rates ranged from 0.92 to 2.09 spaces per unit and the parking demand rates ranged from 0.56 to 1.41 spaces per unit, which indicates that the developments generally had enough parking to meet demand. The highest parking demand rate is from a complex that is not near a rail station or major bus route, suggesting that complexes far from transit may require more parking than those close to transit. The peak demands were approximately 20 percent lower than the parking supply for all but one of the complexes, Avalon Towers on the Peninsula. It has a low parking supply rate of 1.24 spaces per unit and is 0.8 miles from the closest Caltrain station. Several complexes had parking supplies that are 40 to 60 percent higher than their peak demands. 10 Table 1: Available Multi-Family Residential Parking Survey Results Name of Complex Address Distance to Rail Station Type of Rail Number of Units No. of Occupied Units Supply Demand Over- supply 1 1 BR 2 BR 3+ BR Total Units (Bedrooms) No. of Spaces Rate Per Unit Rate Per Bedroom Peak Parking Demand Rate Per Unit Rate Per Occupied Unit Rate Per Bedroom 801 Alma 801 Alma St., Palo Alto 0.3 miles Caltrain (Palo Alto) 10 24 16 50 (106) 50 60 1.20 0.57 51 1.02 1.02 0.48 18% Park Place Apartments 851 Church St., Mountain View 0.7 miles Caltrain/ LRT (Mountain View) 181 186 6 373 (571) n/a 511 1.37 0.89 339 0.91 n/a 0.59 51% Avalon Mountain View 1600 Villa St., Mountain View 0.8 miles Caltrain/ LRT (Mountain View) 117 75 56 248 (435) n/a 426 1.72 0.98 301 1.21 n/a 0.69 42% AvalonBay Creekside 151 Calderon Ave., Mountain View 0.4 miles Caltrain/ LRT (Mountain View) n/a n/a n/a 294 (n/a) 288 436 1.48 n/a 365 1.24 1.27 n/a 19% Avalon Towers on the Peninsula, (ATOP) 2400 West El Camino Real, Mountain View 0.8 miles Caltrain/ LRT (Mountain View) 90 115 6 211 (338) 203 262 1.24 0.78 258 1.22 1.27 0.76 2% Madera Apartments 455 W. Evelyn Ave, Mountain View 0.2 miles Caltrain/ LRT (Mountain View) 116 87 0 2032 (290) n/a 342 1.68 1.18 214 1.05 n/a 0.74 60% Palo Alto Multi-Family Residential Development (Rental) Parking Rate Study August 2018 11 Table 1: Available Multi-Family Residential Parking Survey Results Name of Complex Address Distance to Rail Station Type of Rail Number of Units No. of Occupied Units Supply Demand Over- supply 1 1 BR 2 BR 3+ BR Total Units (Bedrooms) No. of Spaces Rate Per Unit Rate Per Bedroom Peak Parking Demand Rate Per Unit Rate Per Occupied Unit Rate Per Bedroom Central Park Apartments 100 N. Whisman Rd., Mountain View 0.3 miles LRT (Whisman) 68 204 82 354 (722) n/a 696 1.97 0.96 490 1.38 n/a 0.68 42% Kensington Apartments 1220 N. Fair Oaks Ave., Sunnyvale 0.2 miles LRT (Fair Oaks) n/a n/a n/a 186 (n/a) 182 317 1.70 n/a 262 1.41 1.44 n/a 21% Park Central Apartments 1050 Benton St., Santa Clara 0.7 miles Caltrain/LRT (Santa Clara) 85 88 0 173 (261) n/a 345 1.99 1.32 219 1.27 n/a 0.84 58% Mansion Grove Apartments 502 Mansion Park Dr., Santa Clara 0.9 miles LRT (Orchard) 502 494 4 1,000 (1,502) n/a 1,670 1.67 1.11 1,317 1.32 n/a 0.88 27% Ironworks Apartments (North) 457 E. Evelyn Ave., Sunnyvale 0.4 miles Caltrain (Sunnyvale) 7 72 38 117 (265) n/a 244 2.09 0.92 148 1.26 n/a 0.56 65% Ironworks Apartments (South) 388 E. Evelyn Ave., Sunnyvale 0.4 miles Caltrain (Sunnyvale) 44 23 0 67 (90) n/a 109 1.63 1.21 54 0.81 n/a 0.60 91% 12 Table 1: Available Multi-Family Residential Parking Survey Results Name of Complex Address Distance to Rail Station Type of Rail Number of Units No. of Occupied Units Supply Demand Over- supply 1 1 BR 2 BR 3+ BR Total Units (Bedrooms) No. of Spaces Rate Per Unit Rate Per Bedroom Peak Parking Demand Rate Per Unit Rate Per Occupied Unit Rate Per Bedroom Montrose Apartments 1720 W. El Camino Real, Mountain View 1.4 miles Caltrain/LRT (Mountain View) 148 80 0 228 (308) n/a 354 1.55 1.15 219 0.96 n/a 0.71 62% Source: Fehr & Peers, TransForm, and Hexagon Transportation Consultants. 1. Oversupply = (Supply – Demand) / Demand 2. Madera Apartments has seven affordable-housing units and 196 market-rate units. S S a n A n t o n i o R d Ta smanDr Brokaw R d Fremont Ave N Mathilda Ave Tasman Dr El Camino Real JuniperoSerraBlvd OregonExpy FoothillExpy Page M i l l R d Monta g u e E x p y Lawrence Expy N 1 S t S t Alm a S t El Camino Real Central Expy San Thomas Expy San A n t o n i o A v e |}82 |}237 |}87 |}237 |}85 |}85 |}82 £¤101 £¤101 £¤101 !"#880 !"#880 !"#280 Palo Alto Station California Station San AntonioStation Mountain ViewTransit Center Sunnyvale Station Santa ClaraStation Whisman LightRail Station Fair Oaks Light Rail Station Orchard LightRail Station 801 Alma MaderaApartments AvalonBayCreekside Park PlaceApartments MontroseApartments AvalonMountain View Mansion GroveApartmentsAvalon Towers Central ParkApartments IronworksApartments KensingtonApartments ParkCentral Los AltosHills Palo Alto San Jose East PaloAltoMenlo Park Sunnyvale Mountain View Mountain View Los Altos Santa Clara Fremont MilpitasStanford San Jose \\Fpsj03.fpainc.local\data\Projects\_SJ16_Projects\SJ16_1668_Palo_Alto_On_Call\Phase 12 - TO11, Multifamily Parking Demand\Graphics\GIS\MXD\SJ16_1668_Fig0x_Parking Study Locations.mxd Previous Parking Study LocationsFigure 1 Light Rail Train (901) Surveyed Sites LRT Station Light Rail Train (902) Caltrain Station Caltrain Route 14 New Parking Surveys During November and December, 2017, surveys were conducted at nine apartment complexes in Palo Alto to measure their parking demand during various days of the week and times of day. The sites were re- surveyed in June and July, 2018. Selected Survey Sites The nine multi-family complexes were selected in concert with City staff based on development type (i.e. Market Rate, Affordable Housing, or Senior Community) and distance from transit, where transit is defined as fixed rail stations (primarily Caltrain stations) and/or major bus routes (primarily El Camino Real) so that the effects of transit proximity can be discerned. Table 2 lists the locations of the properties along with their types and distance-to-transit categories. Table 3 shows their locations in relation to nearby Caltrain stations (Palo Alto, California, and San Antonio). Distances are based on the shortest pedestrian or bicycle route measured from the complex to the nearest Caltrain station as calculated by Google Maps (typically from the middle of the apartment complex to the closest pedestrian/bicyclist entrance of the Caltrain station). Table 2: Selected Multi-Family Complexes Type Near Transit (<0.5 miles) Mid-Distance to Transit (0.5 to 1.0 miles) Far from Transit (>1.0 miles) Affordable Housing California Park Apartments (2301 Park Boulevard) Oak Court Apartments (845 Ramona Street) Colorado Park Apartments (1141 Colorado Avenue) Market Rate Housing2 -- The Marc (501 Forest Avenue) Midtown Court Apartments (2721 Midtown Court) Tan Plaza Apartments (580 Arastradero Road) Senior Housing Sheridan Apartments1 (360 Sheridan Avenue) Lytton Gardens (330 Everett Avenue) Stevenson House (455 E. Charleston Road) Source: Fehr & Peers, 2018. 1. Sheridan Apartments is an affordable housing complex for senior & disabled residents. For the purposes of this analysis, Sheridan Apartments was considered as a Senior Housing complex. 2. Distances thresholds for “Near Transit,” “Mid-Distance to Transit,” and “Far from Transit” categories were revised after selecting the properties. Because of this revision, there are no Market Rate Housing complexes “Near Transit” and two Market Rate Housing complexes “Far from Transit.” Palo Alto Station California Ave. Station San Antonio Station A l p i n e R d Oreg o n A v e SanAntonioRd Sand H i l l Rd SanAntonio Ave WElCaminoReal FoothillExpy Centra l E x p y Oreg o n E x p y PageMillRd JuniperoSerraBlv d El Ca m i n o R e a l Alma St|}82 |}85 |}82 £¤101 £¤101 !"#280 California ParkApartments Oak CourtApartments The Marc SheridanApartments Tan PlazaApartments Colorado ParkApartments Midtown CourtApartments StevensonHouse LyttonGardens Los Altos Hills Palo Alto Palo Alto EastPalo Alto Menlo Park Sunnyvale Mountain View Los Altos N:\Projects\_SJ16_Projects\SJ16_1668_Palo_Alto_On_Call\Phase 12 - TO11, Multifamily Parking Demand\Graphics\GIS\MXD\SJ16_1668_Fig0x_Parking Study Locations.mxd New Parking Survey LocationsFigure 2 New Parking Survey Locations Caltrain Station Caltrain RouteAffordable Housing Market Rate Housing Senior Housing 16 Each of the observed sites are described below: · Affordable Housing o California Park Apartments is directly west of the California Avenue Caltrain Station on Park Boulevard. The complex is bordered by non-residential land uses, although single-family and multi-residential units are nearby. The complex is also within walking and biking of many restaurants, several grocery stores, and other amenities. The complex has unassigned, uncovered parking spaces for residents only. Street parking is restricted to two hours maximum between 8:00 am and 5:00 pm, Monday through Friday. o Oak Court Apartments is in a residential area of Palo Alto south of the University Avenue downtown area among other multi-family residential complexes and single-family homes. The complex is within walking and biking distance of the University Avenue downtown area, as well as other various grocery stores and amenities. Access to the Palo Alto Caltrain Station is provided on both the east and west sides of the Caltrain tracks, and the station is accessible via both local streets and bicycle and pedestrian paths. The complex has assigned, underground parking for residents only. Street parking is available on most adjacent blocks and is time-restricted for all users except those with residential permits. (Permits are for multiple residential complexes including Oak Court Apartments.) o Colorado Park Apartments is in a residential area of Palo Alto southeast of the US 101/Oregon Expressway interchange and is surrounded by single-family and multi-family residential units. The complex is within walking and biking distance to several schools and parks, but it is not within walking distance to any restaurants, grocery stores, or other amenities. (The Midtown Shopping Center, the nearest shopping center, is approximately 0.7 miles from the complex.) The complex has assigned parking in a residents-only surface- level lot. Most of the parking is covered, but a portion of the spaces are uncovered. Colorado Avenue, the only street bordering the complex, has unrestricted street parking near the site. · Market Rate Housing o The Marc is in a mixed residential/commercial area of Palo Alto near the University Avenue downtown area. A mix of residential units and commercial units surround the complex. The complex is within walking and biking distance of the University Avenue downtown are, as well as other stores and amenities. Access to the Palo Alto Caltrain Station is provided on both the east and west sides of the Caltrain tracks, and the station is accessible via both local streets and bicycle and pedestrian paths. All parking spaces are assigned to residents, although parking is partially in a gated garage and partially in a surface-level lot. Street Palo Alto Multi-Family Residential Development (Rental) Parking Rate Study August 2018 17 parking is restricted to two hours maximum between 8:00 am and 5:00 pm, Monday through Friday. o Midtown Court Apartments is directly north of the Midtown Shopping Center in Palo Alto. The complex shares driveways with another apartment complex and is surrounded by both residential units and commercial land uses. The complex is within walking and biking distance of many restaurants, a grocery store, and other amenities. Access to the California Avenue Caltrain Station is somewhat impeded because the complex is on the opposite side of Caltrain tracks as the station. The complex has both assigned and unassigned parking spaces in a surface lot, with both covered and uncovered spaces. Minimal street parking surrounds the complex, although the parking lot at the Midtown Shopping Center does not restrict parking outside of business hours. o Tan Plaza Apartments is in a primarily residential area of Palo Alto near the intersection of El Camino Real and Arastradero Road. The complex is near mostly residential buildings and some hotel and retail land uses. The complex is within biking distance to select restaurants and stores to the south along El Camino Real. The complex has a gated surface lot for residents only, and all spaces are assigned and covered. Clemo Avenue south of the complex has unrestricted street parking. · Senior Housing o Sheridan Apartments is in a residential area of Palo Alto to the south of the California Avenue downtown area. The complex is near several multi-family residential complexes. It is also within walking and biking distances to restaurants and various amenities on California Avenue. The complex has a resident-only surface lot with assigned parking. Street parking is available on most adjacent blocks and is time-restricted for all users except those with residential permits. (Permits are for multiple residential complexes including Sheridan Apartments.) o Lytton Gardens is in a partially residential, partially commercial area of Palo Alto to the north of the University Avenue downtown area. The complex is next to multi-family residential areas, restaurants, and retail land uses. The complex is within walking and biking distance to the University Avenue downtown area. The complex has gated, assigned, underground parking for residents. Street parking is available on adjacent blocks and is time-restricted for all users except those with residential permits. (Permits are for multiple residential complexes including Lytton Gardens.) Additionally, there is a parking lot near the complex that is reserved for other multi-family residential complexes and retail shops. 18 o Stevenson House is in a residential area of Palo Alto near the intersection of Charleston Road and Middlefield Road. The complex is near primarily single-family residential homes and elementary schools. A small shopping center with restaurants and a grocery store is within walking and biking distance of the complex. The complex has assigned parking spaces for residents in a surface lot. Some of the parking spaces are covered. Street-parking is available on the east side of Charleston Road for residents with parking permits. All observed sites have dedicated parking facilities for residents, visitors, and staff where the number of parked vehicles could be counted (no private one and two-car garages). No observed sites offer unbundled parking. The number of units by bedroom count, number of parking spaces, and parking supply rates per unit and per bedroom are presented in Table 4. The properties also have at least 45 units, with unit occupancy at or above 95%. Methodology & Results This section summarizes the survey methods and results. Parking Inventories A parking inventory was conducted at each selected survey site to verify the parking supply. The inventory included counts of the numbers of spaces and how they were identified, e.g., reserved, visitor, staff, office, Americans with disabilities Act (ADA)-compliant, etc. Spaces that had no identification were designated as “general”. The parking inventories are presented in Table 3. The parking requirements per City code are also presented. Many of the sites have fewer on-site spaces than the code requirements. If complexes provide less parking than the code requirements and parking occurs on adjacent streets, this may contribute to a perception of the city code being too low. Palo Alto Multi-Family Residential Development (Rental) Parking Rate Study August 2018 19 Table 3: Parking Inventories at Survey Sites Name of Complex Number of Parking Stalls Required Parking Supply1 General Reserved ADA- Compliant Visitor Office/ Staff/ Vendor Future Neighbor EV Total Affordable Housing California Park Apartments 67 - 3 - - - - 70 762 Oak Court Apartments - 85 2 20 - - - 107 872 Colorado Park Apartments - 86 2 - 2 - - 90 992 Market Rate Housing The Marc - 153 2 - - - 2 157 1723 Midtown Court Apartments 58 10 - - 1 - - 69 83 Tan Plaza Apartments 65 10 2 - 2 5 - 84 127 Senior Housing Sheridan Apartments - 20 1 - - - - 21 474 Lytton Gardens 3 38 5 5 - - - 51 424 Stevenson House 35 2 3 6 4 - - 50 974 Notes: 1. Required parking supplies were calculated using the City of Palo Alto’s parking requirements. 2. Per the City of Palo Alto’s parking requirements, a 20% parking reduction was applied to affordable housing with low income units. 3. Per the City of Palo Alto’s parking requirements, a 20% parking reduction was applied to market-rate housing nearest to transit. 4. Per the City of Palo Alto’s parking requirements, a 50% parking reduction was applied to senior housing complexes. Source: Fehr & Peers, 2018. 20 Parking Occupancy Surveys Parking occupancy surveys were conducted in November and December, 2017 to count the numbers of parked vehicles on-site by space type on a weekday (Tuesday, Wednesday, or Thursday) at three time periods (midday, evening, and late night - after midnight) and on a weekend day at two time periods (midday and late night). An additional round of parking occupancy surveys was conducted in June and July, 2018 on a weekday during the late-night period to capture total on-site and potential on-street parking demand. The summarized results showing the numbers of parked vehicles, parking demand rates per unit, per occupied unit, and per bedroom are in Table 4. The peak (highest) on-site parking demand survey results are shown. The peak demand rates are based on the highest observed on-site demand plus the highest observed on-street demand. It should be noted that it is difficult to discern whether the vehicles parked on street are associated with the apartment complex or with other homes or land uses in the area. All of the on-street parked vehicles are included in the demand rates yielding conservative results. (More detailed survey results are included in Appendix B.) Most of the complexes achieved their peak parking demand on weekdays during the late night period. Two had identical peak parking demands during the late night period on weekdays and on weekends (California Park Apartments and Tan Plaza). One of the senior housing complexes reached its peak parking demand during the late night weekend period (Stevenson House). Only three of the complexes, Oak Court Apartments, Lytton Courtyard, and Stevenson House, have designated visitor spaces. Oak Court Apartment has 20 visitor spaces and the number of vehicles parked in those spaces remained at 6 or 7 throughout the survey period. Lytton Courtyard has 5 visitor spaces with 1 or 2 parked vehicles. The number of vehicle in the six visitor spaces at Stevenson House ranged from 2 to 5. Palo Alto Multi-Family Residential Development (Rental) Parking Rate Study August 2018 21 Table 4: New Multi-Family Residential Parking Survey Results Name of Complex Distance to Rail Station (Nearest Caltrain Station) Number of Units No. of Occupied Units Supply Peak Demand Demand Rates (Per Unit) Demand Rates (Per Bedroom) Over- Supply Range3,4 1 BR 2 BR 3+ BR Total Units (Total Bedrooms) No. of Spaces Supply Rate per Unit Supply Rate per Bedroom On- Site 2 On- Street 1,2 On- Site 2 On-Site & On- Street2 Rate Per Bedroom (On-Site) 2 Rate Per Bedroom (On- Site & On- Street)2 Affordable Housing California Park Apts. 0.1 mi. (CA) 1 31 13 45 (102) 45 70 1.56 0.69 49 19 1.09 1.51 0.48 0.67 3-43% Oak Court Apts. 0.6 mi. (PA) 9 18 26 53 (123) 53 107 2.02 0.87 66 12 1.25 1.47 0.54 0.63 37-62% Colorado Park Apts. 1.8 mi. (CA) 8 24 28 60 (140) 60 90 1.50 0.64 78 13 1.30 1.52 0.56 0.65 0-15% Market Rate Housing The Marc 0.7 mi. (PA) 70 44 4 118 (170) 114 157 1.33 0.92 93 5 0.82 0.86 0.55 0.58 60-69% Midtown Court Apts. 1.1 mi. (CA) 31 15 0 46 (61) 44 69 1.50 1.13 46 13 1.05 1.34 0.75 0.97 17-50% Tan Plaza Apts. 1.5 mi. (SA) 6 50 5 61 (121) 60 84 1.38 0.69 70 14 1.17 1.40 0.58 0.69 0-20% Senior Housing Sheridan Apts. 0.3 mi. (CA) 57 0 0 57 (57) 57 21 0.37 0.37 20 3 0.35 0.40 0.35 0.40 0-5% Lytton Gardens 0.5 mi. (PA) 51 0 0 51 (51) 51 51 1.00 1.00 35 0 0.69 0.69 0.69 0.69 46% Stevenson House 1.2 mi. (SA) 120 0 0 120 (120) 120 50 0.42 0.42 41 0 0.34 0.34 0.34 0.34 22% Notes: Complexes are color coded by distance to transit, with darker colors indicating higher distance to transit. 1. Only a portion of the on-street parked vehicles are associated with the apartment complex. 2. On-site demand represents the higher peak demand observed of the two studies. On-street demand is from the new study only. Entire on-street demand included in demand rates. 3. Oversupply = (Supply – Demand) / Demand 4. Because it is not possible to determine how many on-street vehicles are generated by the complex, Oversupply Range represents the minimum (100% of on-street parking is generated by the complex) and maximum (0% of on-street parking is generated by the complex) oversupplies. If no on-street parking was observed, one oversupply percent is given. Sources: City of Palo Alto, Fehr & Peers. 22 Resident Intercept Surveys The Planning and Transportation Commission requested that resident intercept surveys be conducted to gauge residents’ perspectives on parking conditions. One property, The Marc, allowed Fehr & Peers staff to conduct a survey on June 21, 2018. Two staff members went to the complex and recorded resident responses to the following three questions: · What is your overall sense of the parking supply at this complex? (Too much parking, too little parking, or about the right amount of parking) · How do you feel about parking in the garage compared to on-street parking/parking in neighboring lots? · How do you feel about using the parking structure/lot at this complex? Do you feel safe using the parking structure/lot at this complex? Seven residents (four female and three male) agreed to be interviewed. Overall, residents feel like the parking supply at The Marc is about right, although one resident mentioned that the parking structure is “packed” sometimes. All residents preferred parking in the complex instead of parking on the street. Several residents mentioned that they prefer parking in the complex because they have their own reserved space, while others stated that parking on the street is a “hassle.” All residents also reported that they feel safe parking at the complex. One male resident mentioned that there is occasionally homeless activity near the parking complex. Appendix C shows the full responses of the resident intercept surveys. The Marc showed low parking lot occupancy during the previous (57%) and new (62%) parking surveys, indicating that the parking supply is more than adequate. The Marc also had assigned parking for most residents and showed the lowest number of on-street vehicles of all observed Market Rate and Affordable Housing complexes. Data Analysis The parking occupancy surveys results were reviewed and statistical analyses were performed, including a multi-variant linear regression analysis, to determine the correlation between the peak parking demand and the number of dwelling units (categorized by number of bedrooms) and total number of bedrooms, and to determine whether distance to transit had any statistical significance. In addition the highest peak demand rates for each category were reviewed. The conversion of parking demand rates to parking supply rates is discussed in the next chapter. Palo Alto Multi-Family Residential Development (Rental) Parking Rate Study August 2018 23 Statistical Analyses The best statistical analysis results regarding peak parking demand compared to the number of units are summarized below. These equations should be used with caution due to the low sample size. Affordable Housing Peak Parking Demand = 1.33 (X1) + 1.52 (X2+), where X1 = Number of one-bedroom units and X2+ = Number of two (or more)-bedroom units The results are inconclusive regarding distance to transit. Market-Rate Housing Not accounting for distance to transit: Peak Parking Demand = 0.56 (X1) + 1.42 (X2+), where X1 = Number of one-bedroom units and X2+ = Number two (or more)-bedroom units Accounting for distance to transit: Peak Parking Demand = 0.67 (X) + 27.88 (Y), where X = Total number of units Y = Walking distance to closest rail station in miles Senior Housing Peak Parking Demand = 0.40 (X1), where X1 = Number of one-bedroom units The results are inconclusive regarding distance to transit. Highest Demand Rates To ensure that a sufficient amount of parking is provided parking demand rates used in selecting the parking supply are based on 85th percentile rates, not average rates. Since the number of survey sites is low, the highest rate for each category would represent the 85th percentile rate. Therefore, the highest of the peak 24 parking demand rates for each category is used, not the average of the rates, to develop parking supply rates. The highest rates and the range of rates for each category are presented in Table 5. Table 5: Peak Parking Demand Rates by Housing Type Housing Type Range of Peak Parking Demand ratess Maximum Peak Parking Demand Rate Spaces per Unit Spaces per Bedroom Spaces per Unit Spaces per Bedroom Affordable Housing 1.47-1.52 0.63-0.67 1.52 0.67 Market Rate Housing 0.86-1.40 0.58-0.97 1.40 0.97 Senior Housing 0.34-0.69 0.34-0.69 0.69 0.69 Source: Fehr & Peers. General Observations Some general observations regarding the survey sites and results are presented below: · The Affordable Housing complexes have a higher proportion of two and three-bedroom units, the Market Rate complexes have more one-bedroom then two+ bedroom units, and the Senior Housing complexes are comprised of primarily one-bedroom units. · On a per-unit basis, the lowest parking demand rates were observed at the Senior Housing complexes and the highest at Affordable Housing complexes. On a per bedroom basis, the Affordable and Senior Housing sites had comparable rates while Market Rate units had the highest rate. · Resident experiences at The Marc indicate that residents prefer to park at the apartment complex instead of on the street and that residents view always having available parking/empty spaces as the right amount of parking. (Therefore, a complex where the supply is closer to the peak demand may be viewed as having “too little” parking.) Palo Alto Multi-Family Residential Development (Rental) Parking Rate Study August 2018 25 4. Conclusions The information contained in this report, primarily the results of the parking surveys conducted at complexes in Palo Alto, were used develop parking supply rates. The rates are based on the goal of the parking supply being adequate to accommodate the peak demand on site to minimize intrusion into surrounding neighborhoods. Parking supply rates are typically about 10 percent higher than the anticipated peak demand to account for demand variations, to reduce the amount of vehicular circulation to locate the last vacant spaces, and to limit over-supplies. Parking supply rates for each of the apartment categories were selected based on the highest surveyed parking demand including both on-site and on-street spaces and the statistical analysis results. These rates include guest parking. Applying the resulting supply rates to the survey sites would result in supplies exceeding the parking demand by over 20 percent in most cases. Therefore these supply rates would minimize parking intrusion. The supply rates and discussions on how they were derived are presented below: Affordable Housing: · 1.0 parking space per studio and per 1-bedroom unit · 2.0 parking spaces per 2-bedroom or larger unit Reserved parking, if provided, could be limited to one space per unit to maximize parking space availability. All three of the survey sites have similar parking demand rates on both a per-unit and per-bedroom basis. The linear regression analysis indicates that the per unit demand rate is similar regardless of the number of bedrooms. This is primarily due to the low proportion of one-bedroom units and higher number of two and three-bedroom units to accommodate families (and their limited effect on parking demand). Therefore the parking rate is 2.0 spaces per unit with two or more bedrooms to acknowledge the higher parking demand associated with the larger units. The rate of 1.0 space per studio/one-bedroom unit was selected as it is the minimum acceptable supply rate. A higher rate is not needed as it would result in an oversupply. Market Rate Housing: · 1.0 parking space per studio and per 1-bedroom unit · 2.0 parking spaces per 2-bedroom or larger unit Reserved parking, if provided, could be limited to one space per unit to maximize parking space availability. 26 The market rate sites showed more variation in parking demand rates, especially on a per-bedroom basis. The linear regression analysis indicated demand rates in proportion with the number of bedrooms. On average these complexes are an even mix of one and two-bedroom units with few three-bed-room units. The parking rates of 1.0 space per studio/one-bedroom unit and 2.0 spaces per unit with two or more bedroom, even though identical to the Affordable Housing rates, maintain the magnitude of rate increase in the linear regression but set the minimum rate at 1.0 space per unit. Senior Housing: · 0.75 spaces per unit All of the Senior Housing survey sites comprised one-bedroom units. The highest demand rate was 0.69 spaces per unit and per bedroom. This rate was used to develop the parking supply rate. Palo Alto Multi-Family Parking Demand Rate Study March 2018 Appendix A: Summary Tables from Previous Parking Studies Summary Table from “A Parking Utilization Survey of Transit-Oriented Development Residential Properties in Santa Clara County” Summary Table from “Are TODs Over-Parked?” Summary Table from “Los Angeles Trip Generation Study” Summary Table from “San Diego Affordable Housing Study” Appendix B: New Parking Survey Results Stalls Occupied Parking Occupancy Demand Rateb Stalls Occupied Parking Occupancy Demand Rateb Stalls Occupied Parking Occupancy Demand Rateb Stalls Occupied Parking Occupancy Demand Rateb Off-Site Parking Demanda Stalls Occupied Parking Occupancy Demand Rateb Stalls Occupied Parking Occupancy Demand Rateb California Park 45 45 70 1.56 1.09 19 0.27 0.42 28 0.40 0.62 41 0.59 0.91 49 0.70 1.09 19 27 0.39 0.60 41 0.59 0.91 Oak Court 53 53 107 2.02 1.25 36 0.34 0.68 43 0.40 0.81 66 0.62 1.25 62 0.58 1.17 12 46 0.43 0.87 59 0.55 1.11 Colorado Park 60 60 90 1.50 1.30 36 0.40 0.60 56 0.62 0.93 78 0.87 1.30 70 0.78 1.17 13 44 0.49 0.73 70 0.78 1.17 1.69 1.21 -- 0.34 0.57 -- 0.47 0.79 -- 0.69 1.15 -- 0.69 1.14 -- -- 0.43 0.73 -- 0.64 1.06 The Marc 118 114 157 1.33 0.82 59 0.38 0.52 64 0.41 0.56 90 0.57 0.79 93 0.59 0.82 5 59 0.38 0.52 79 0.50 0.69 Midtown Court 46 44 69 1.50 1.05 22 0.32 0.50 27 0.39 0.61 46 0.67 1.05 41 0.59 0.93 13 28 0.41 0.64 42 0.61 0.95 Tan Plaza 61 60 84 1.38 1.17 38 0.45 0.63 39 0.46 0.65 70 0.83 1.17 ------14 49 0.58 0.82 70 0.83 1.17 1.40 1.01 -- 0.38 0.55 -- 0.42 0.61 -- 0.69 1.00 -- 0.59 0.87 -- -- 0.45 0.66 -- 0.65 0.94 Sheridan 57 57 21 0.37 0.35 17 0.81 0.30 19 0.90 0.33 20 0.95 0.35 17 0.81 0.30 3 16 0.76 0.28 18 0.86 0.32 Lytton 51 51 51 1.00 0.69 31 0.61 0.61 26 0.51 0.51 25 0.49 0.49 31 0.61 0.61 0 23 0.45 0.45 35 0.69 0.69 Stevenson 120 120 50 0.42 0.34 33 0.66 0.28 39 0.78 0.33 41 0.82 0.34 35 0.70 0.29 0 35 0.70 0.29 36 0.72 0.30 0.60 0.46 -- 0.69 0.39 -- 0.73 0.39 -- 0.75 0.39 -- 0.71 0.40 -- -- 0.64 0.34 -- 0.75 0.43 Notes: a. Only a portion of the on-street parked vehicles are associated with the apartment complex. b. On-site demand rate per unit. Late Maximum Demandb Occupied units Market Rate Average: Senior Average: Affordable Average: Weekday - (June & July 2018) Late Palo Alto Parking Survey Results (By Housing Type) Midday Late Weekend (November & December 2017)Weekday - (November & December 2017) Supply RateSite Capacity (Spaces)Total units Midday Evening Palo Alto Multi-Family Parking Demand Rate Study March 2018 Appendix C: Resident Intercept Survey Results What is your overall sense of the parking supply at this complex? (Too much parking, too little parking, or about the right amount of parking) How do you feel about parking in the garage compared to on-street parking/parking in neighboring lots? How do you feel about using the parking structure at this complex? Do you feel safe using the parking structure at this complex? Female Fine, has a reserved space In complex preferred, has own space Yes, feels safe Male Fine, has a reserved space In complex preferred, has own space, really does not like street parking Feels safe, sometimes homeless activity around parking structure Female Right amount She lives here with a designated spot, feels satisfied parking in structure Yes, positive Female Right amount, has a reserved spot Prefer to park in structure, on-street is a hassle as you have to move it constantly Yes, positive Male Right amount Prefer parking in garage Yes, it is safe Male Right amount Prefer parking at garage because of designated spaces Yes, completely safe Female Sometimes it's packed, but most of the time the right amount. Never felt it's too little. Prefers parking at garage, has a designated space, wont' get into hassle of finding on-street parking Yes, completely safe Gender Questions Resident Intercept Surveys - The Marc, 6/21/2018 FRONT PERSPECTIVE REAR PERSPECTIVE 10,000 ft2 Lot │ 10,000 ft2 Office Building│ 1.0 FAR │40 Off-Site Parking Spaces 100 ft100 f t 50 ft 50 f t 100 ft 25 ft 25 ft UNIVE R S I T Y A V E N U E BACK Y A R D SID E S T R E E T LO T L I N E 100 ft 10 0 f t 50 ft 100 ft 50 f t commercial KEY commercial KEY Zoning Requirements • 50 ft height limit • 1.0 max. FAR • No setbacks • No max. lot coverage *images not to scale; numbers are approximate CD-C DISTRICT (DOWNTOWN) FRONT PERSPECTIVE REAR PERSPECTIVE 10,000 ft2 Lot │ 20,000 ft2 of Mixed-Use│ 2.0 FAR │ 9 1BD & 2BD Units │ 10,000 ft2 of Retail │ 56 Parking Spaces Zoning Requirements • 10 ft rear setbacks • 20% landscaping coverage • 150 ft2 usable open space per unit • 50 ft max. height • 2.0 max. FAR • 40 unit/acre density max. CD-C DISTRICT (DOWNTOWN) 100 ft residential residential KEY KEY retail retail parking 100 ft 55 ft 10 0 f t UNIVE R S I T Y A V E N U E SI D E S T R E E T 50 ft 45 f t 9 0 f t *images not to scale; numbers are approximate Parkin g Acces s FRONT PERSPECTIVE REAR PERSPECTIVE residential residential KEY KEY retail retail parking parking *images not to scale; numbers are approximate 10,000 ft2 Lot │ 13,500 ft2 of Residential│ 1.35 FAR │ 9 1BD, 2BD & 3BD Units │ 10 Parking Spaces CD-C DISTRICT (DOWNTOWN) Zoning Requirements • 10 ft rear setbacks • 20% landscaping coverage • 150 ft2 usable open space per unit • 50 ft max. height • 35% FAR bonus • 40 unit/acre density max. • Reduced parking ratio (0.5 spaces/unit) FRONT PERSPECTIVE REAR PERSPECTIVE 30,000 ft2 Lot │ 60,000 ft2 Hotel │ 2.0 FAR │100 Guestrooms │ 100 Below Grade Parking Spaces 150 ft 20 0 f t 165 f t 125 ft 30 ft 30 ft 10 ft 10 f t 15 ft 15 ft 25 f t EL CA M I N O R E A L BACK Y A R D SI D E S T R E E T SID E Y A R D 150 f t 200 f t 25 ft 125 ft 165 f t hotel KEY hotel parking KEY Zoning Requirements • 10 ft front setback • 10 ft setback abutting residential • 50% frontage build-to lines • 33% side street build-to lines • 35 ft height limit near residential • 2.0 max. FAR *images not to scale; numbers are approximate Par k i n g Acc e s s CS DISTRICT (EL CAMINO REAL) FRONT PERSPECTIVE REAR PERSPECTIVE 30,000 ft2 Lot │ 30,000 ft2 of Mixed-Use│ 1.0 FAR │ 15 1BD & 2BD Units │ 1,000 ft2 of Retail │ 25 Parking Spaces CS DISTRICT (EL CAMINO REAL) Zoning Requirements • 10 ft front, rear and side yard setbacks • 5 ft street side yard • 50% max site coverage • 30% landscaping coverage • 150 ft2 usable open space per unit • 35 ft height limit near residential • 1.0 max. FAR 150 ftresidential residential KEY KEY retail retail parking parking 100 ft 10 0 f t 2 0 0 f t EL CAM I N O R E A L S I D E S T R E T 30 ft 10 ft 1 0 f t 5 f t 35ft 9 0 f t 150 ft 20 0 f t BACK YARD SI D E Y A R D 30 ft 100 ft 1 0 0 f t 35ft 70ft 105ft 90 f t *images not to scale; numbers are approximate