HomeMy WebLinkAboutStaff Report 4211
City of Palo Alto (ID # 4211)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 11/4/2013
City of Palo Alto Page 1
Summary Title: Second Reading - Parking Exemptions Code Ordinances
Title: SECOND READING: 1. Adoption of an Interim Ordinance to Amend
Chapters 18.18, Downtown Commercial (CD) District, and 18.52, (Parking and
Loading Requirements) to Make the Following Changes to be Effective for a
Period of Two Years: a. Delete Sections 18.18.090(b)(1)(C) and
18.52.070(a)(1)(D) to Eliminate the Parking Exemption related to the 200
Square Foot Minor Floor Area Bonus for Buildings not Eligible for Historic or
Seismic Bonus. b. Delete Sections 18.18.090(b)(1)(B), 18.52.070(a)(1)(B) and
18.52.070(a)(1)(C)(i) to Eliminate the Parking Exemption for On-site Use of
Historic and Seismic Bonus. c. Amend Section 18.18.080(g) to remove the On-
site Parking Exemption for Historic and Seismic Transfer of Development
Rights up to 5,000 Square Feet of Floor Area to a Receiver Site in the CD or PC
Zoning Districts. d. Amend Section 18.52.070(a)(3) to Remove the Sentence
Allowing Square Footage to Qualify for Exemption That Was Developed or
Used Previously for Nonresidential Purposes but was Vacant at the time of
the Engineer's Report. 2. Adoption of an Ordinance to Repeal Ordinance 5167
and Amend the Palo Alto Municipal Code to Delete Sections 18.52.060(a)(2)
and 18.52.060(c) Related to Parking Assessment Districts to Eliminate the
“Exempt Floor Area” Parking Exemption Which Allows for Floor Area up to a
Floor Area Ratio (FAR) of 1.0 to 1.0 to be Exempt From Parking Requirements
Within the Downtown Parking Assessment Area and Floor Area up to an FAR
of 0.5 to 1.0 to be Exempt Within the California Avenue Area Parking
Assessment District. These actions are exempt from the California
Environmental Quality Act (CEQA) under Section 15061 and 15301 of the
CEQA Guidelines (First Reading: October 21, 2013 PASSED: 8-1 Kniss no)
From: City Manager
Lead Department: Planning and Community Environment
Recommendation
City of Palo Alto Page 2
Staff recommends that Council adopt on second reading the following:
1. Adopt an Interim Ordinance (Attachment A) to amend PAMC Chapters 18.18, Downtown
Commercial (CD) District, and 18.52 (Parking and Loading Requirements), to make the
following changes, to be effective for a period of two years:
a. Delete Sections 18.18.090(b)(1)(C) and 18.52.070(a)(1)(D) to eliminate the
parking exemptions related to the 200 square foot Minor Floor Area Bonus for
buildings not eligible for Historic or Seismic Bonus.
b. Delete Sections 18.18.090(b)(1)(B), 18.52.070(a)(1)(B) and 18.52.070(a)(1)(C)(i)
to eliminate the parking exemption for on-site use of Historic and Seismic Bonus
floor area.
c. Amend Section 18.18.080(g) to remove the on-site parking exemption for floor
area bonuses derived through historic and seismic upgrades via the transfer of
development rights (TDR) program (where up to 5,000 square feet (SF) of floor
area for each type of upgrade has been allowed without having to be “parked”
for receiver sites in the CD or downtown PC zoning districts).
d. Amend Section 18.52.070(a)(3) to disallow the parking exemption for floor area
developed or used previously for non-residential purposes and vacant at the time
of the engineer’s report during the parking district assessment.
2. Adopt an Ordinance to amend the Palo Alto Municipal Code (PAMC) to permanently
delete Sections 18.52.060(a)(2) and 18.52.060(c) related to Parking Assessment Districts
to eliminate the “Exempt Floor Area” parking exemption which allows floor area up to a
floor area ratio (FAR) of 1.0 to 1.0 to be exempt from parking requirements within the
Downtown Parking Assessment Area, and floor area up to an FAR of 0.5 to 1.0 to be
exempt within the California Avenue area parking assessment district (Attachment B).
Background
On October 21, 2013, the City Council approved, with amendments to the original staff
recommendation, an interim ordinance to be effective for a period of two years to eliminate
parking exemptions related to the following:
1. 200 square foot Minor Floor Area Bonus.
2. On-site use of Historic and Seismic Bonuses.
3. Floor Area Bonuses derived through historic or seismic upgrades via the transfer of
development rights (TDR) program.
City of Palo Alto Page 3
4. Floor area developed or used previously for non-residential purposes and vacant at the
time of the engineer’s report during the parking district assessment.
Per staff’s recommendation at the Council hearing, the Council did not modify the existing
building replacement provision of code section 18.18.120(a)(2) and (b)(2) pertaining to
grandfathered uses and facilities as originally proposed. In addition, the Council modified the
ordinance to keep the 200 square foot Minor Floor Area Bonus for buildings not on the City’s
list of historic resources or seismic categories, but to eliminate the parking exemption
associated with this bonus. In addition, Council clarified that this bonus must be parked and
that if it cannot be parked on site, it can pay in lieu parking fees. A revised Interim Ordinance
which reflects Council’s action is included as Attachment A.
The Council also approved an Ordinance to Repeal Ordinance 5167 and amend Palo Alto
Municipal Code related to Parking Assessment Districts to eliminate the “Exempt Floor Area”
parking exemption which allows for floor area up to a floor area ratio (FAR) of 1.0 to 1.0 to be
exempt from parking requirements within the Downtown Parking Assessment Area and floor
area up to an FAR of 0.5 to 1.0 to be exempt from parking requirements within the California
Avenue area parking assessment district (Attachment B). There had been a moratorium on the
use of this ordinance since October 2012.
Discussion
At the October 21, 2013 Council hearing on the proposed ordinances, there were a number of
public speakers, including residents of the neighborhoods surrounding the downtown area, and
developers and commercial property owners with projects pending review that could be
impacted by the Council’s action on the interim ordinance. The residents expressed concern
with the intrusion of parking into the neighborhoods, indicating data has been collected to
document the increased impacts of parking in the area. Developers with projects in the
pipeline (submitted for planning review but not yet approved) expressed concern that the rules
would change in the middle of the process and asked that Council consider exempting the
pipeline projects from the interim ordinance.
After some discussion, the Council determined that the projects that had received final
planning approvals and/or building permits (refer to Table 5 in Attachment C, Council Report
Parking Exemptions dated October 21, 2013) would be exempt from the interim ordinance. The
Council also determined that the pipeline projects listed in Table 6 of the October 21st CMR
Report, reduced to five projects given the at-places memo (Attachment D) regarding project
changes for one of listed projects, would be subject to the provisions of the Interim Ordinance.
These projects would either need to be revised to reduce floor area, provide the required
parking spaces on site or pay the in-lieu fees (if in the assessment district). Staff has already
spoken to several of these applicants, who now intend to provide additional parking onsite
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and/or pay in-lieu fees.
Timeline
The Interim Ordinance to eliminate certain parking exemptions for a period of two years would
become effective 31 days after Council’s adoption. The interim ordinance would be in effect for
two years from its effective date unless amended or made permanent by Council. The
Ordinance establishing the moratorium on the use of Parking Exemptions within the Downtown
and California Avenue Parking Assessment areas will expire on December 28, 2013. In order for
the current provisions to stay in effect, the permanent ordinance will need to be adopted by
the City Council 31 days prior to the expiration (by November 27, 2013).
Environmental Review
The proposed Ordinances would eliminate certain exemptions to the parking regulations within
the Downtown and California Avenue areas of the City of Palo Alto, which will result in projects
that will comply with the remaining parking regulations established in the Palo Alto Municipal
Code. Each development project submitted under the revised regulations will be subject to its
own environmental review. Consequently, these ordinances are exempt from the requirements
of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of Title 14
of the California Code of Regulations since it can be seen with certainty that there is no
possibility the adoption and implementation of these Ordinances may have a significant effect
on the environment. Further, the actions are compliant with Section 15301 in that these
proposed ordinances will have a minor impact on existing facilities.
Attachments:
Attachment A: Interim Ordinance Parking Regulations (PDF)
Attachment B: Ordinance to Eliminate 1 to 1 Parking Exemption (PDF)
Attachment C: CMR Parking Exemptions dated October 21, 2013 (PDF)
Attachment D: Parking Exemptions At Places (PDF)
Attachment E: October 21, 2013 City Council Action Minutes (DOC)
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Ordinance No. ____
Interim Ordinance of the Council of the City of Palo Alto to Amend
Chapters 18.18, Downtown Commercial (CD) District and 18.52, Parking
and Loading Requirements, to Eliminate Certain Parking Exemptions
within the Downtown Area
The Council of the City of Palo ORDAINS as follows:
SECTION 1. Findings and Recitals. The Council of the City of Palo Alto finds and
declares as follows:
A. The City of Palo Alto downtown area has seen an increase in development and
has experienced increases in parking demand, as documented in downtown monitoring
reports produced in the past five years. According to the Downtown Monitoring Report
2011-2012 provided to the City Council on March 11, 2013, since 2008, eight projects were
approved which included seismic, historic and minor floor area bonuses totaling 28,676
square feet, with parking exemptions granted equivalent to 115 parking spaces. In addition
as of October 1, 2013, there are three additional projects pending in the Downtown totaling
approximately 77,788 square feet and requesting parking exemptions equivalent to 100
parking spaces.
B. No new parking structures have been added to the City’s inventory since 2003.
C. In addition, the overall vacancy rate within the Commercial Downtown (CD)
zoning district has dropped from a high rate of 6.39 percent in 2008-2009 to a 1.6 percent
rate in the 2011-2012 reporting period.
D. The Downtown Parking Survey conducted in Spring of 2013 shows that within
the Commercial Downtown core area, on-street parking occupancy between 12:00 noon
and 2:00 p.m. reached 87.9 percent overall.
E. According to the Downtown Parking Study, parking in hourly public lots and
garages was at 87.2% occupancy, while permit parking in public lots and garages was at
65.9% occupancy.
F. The Spring 2013 and Fall 2012 Downtown Parking Surveys also show that
compared to previous years, on-street parking use has increased in the Downtown North,
Professorville and South of Forest Avenue neighborhoods.
G. The City is experiencing increased office occupancy as employers are beginning
to transform work spaces from individual offices or cubicles to open space concepts
permitting more employees per square foot.
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H. Increased demand for parking caused by recent addition of office square
footage, increased office occupancy and an upswing in downtown retail activity has been
coupled with a decreasing supply of parking due to the use of existing parking exemptions
in new development and lack of a robust transportation demand management program.
I. The Downtown Parking Code was adopted at a time when the downtown was
underdeveloped and incentives for redevelopment were needed. One of the primary
incentives incorporated into the Code was a series of parking exemptions. These parking
exemptions were exceedingly successful in encouraging both the rehabilitation of historic
and seismically unsafe buildings and redevelopment in the Downtown core in general. The
City is now at a point where most of the historic and seismically unsafe buildings have been
renovated and the downtown has transformed into an economically thriving area.
J. The lack of available daytime downtown parking for employees has resulted in
complaints from both merchants and other businesses about the lack of parking for their
employees.
K. The lack of available daytime downtown parking for employees has also resulted
in complaints from residents in the downtown and adjacent areas about congested parking
in their neighborhoods.
L. The lack of available daytime downtown parking results in traffic seeking
available parking spaces to circulate for longer periods of time, resulting in related impacts
on air quality from increased emissions.
M. The Palo Alto Zoning Ordinance Chapters 18.18 (Downtown Commercial District)
and 18.52 (Parking and Loading Requirements) provide for a variety of exemptions and
reductions to parking requirements within the downtown area that result in less parking
being provided than the calculated demand for parking in new projects.
N. The Transfer of Development Rights provisions for Historic and Seismic Upgrades
to Structures and the minor floor area bonuses were enacted to encourage restoration of
historic buildings and to make existing structures seismically safe and the program has been
successful. However continued application of the parking exemptions granted by these
provisions will exacerbate Downtown parking deficiencies.
O. The City Council desires on an interim basis for a period of two years to eliminate
the parking exemption related to the 200 square foot Minor Floor Area Bonus for buildings
not eligible for Historic Bonus; to eliminate the Transfer of Development Rights provision
that allows a 5,000 square foot floor area exemption from on-site parking requirements and
for floor area transferred to a receiver site within the CD zone district; and to disallow the
parking exemption for floor area developed or used previously for non-residential purposes
and vacant at the time of the engineer’s report during the parking district assessment.
Unless a new ordinance is adopted to permanently establish these provisions, these zoning
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code amendments shall “sunset” (expire) two (2) years following the effective date of the
amendment; after which time, if revised regulations have not been adopted, the previous
provisions shall be reinstated.
SECTION 2. Subsection 18.18.070(a) (Floor Area Bonuses) of Title 18 (Zoning) of the
Palo Alto Municipal Code is amended to read as follows:
(a) Available Floor Area Bonuses
(1) Minor Bonus for Buildings Not Eligible for Historic or Seismic Bonus
A building that is neither in Historic Category 1 or 2 nor in Seismic Category I, II, or III
shall be allowed to increase its floor area by 200 square feet without having this increase
count toward the FAR, subject to the restrictions in subsection (b). Such increase in floor
area shall not be permitted for buildings that exceed a FAR of 3.0:1 in the CD-C subdistrict
or a FAR of 2.0:1 in the CD-N or CD-S subdistricts. This bonus is not subject to transfer and
must be fully parked. In addition to any applicable parking provisions, this bonus may be
parked by the payment of in lieu parking fees under Section 18.18.090.
(2) Seismic Rehabilitation Bonus
A building that is in Seismic Category I, II, or III, and is undergoing seismic
rehabilitation, but is not in Historic Category 1 or 2, shall be allowed to increase its floor
area by 2,500 square feet or 25% of the existing building, whichever is greater, without
having this increase count toward the FAR, subject to the restrictions in subsection (b). Such
increase in floor area shall not be permitted for buildings that exceed a FAR of 3.0:1 in the
CD-C subdistrict or a FAR of 2.0:1 in the CD-N or CD-S subdistricts.
(3) Historic Rehabilitation Bonus
A building that is in Historic Category 1 or 2, and is undergoing historic rehabilitation,
but is not in Seismic Category I, II, or III, shall be allowed to increase its floor area by 2,500
square feet or 25% of the existing building, whichever is greater, without having this
increase count toward the FAR, subject to the restrictions in subsection (b). Such increase in
floor area shall not be permitted for buildings that exceed a FAR of 3.0:1 in the CD-C
subdistrict or a FAR of 2.0:1 in the CD-N or CD-S subdistricts, except as provided in
subsection (5).
(4) Combined Historic and Seismic Rehabilitation Bonus
A building that is in Historic Category 1 or 2, and is undergoing historic rehabilitation,
and is also in Seismic Category I, II, or III, and is undergoing seismic rehabilitation, shall be
allowed to increase its floor area by 5,000 square feet or 50% of the existing building,
whichever is greater, without having this increase count toward the FAR, subject to the
restrictions in subsection (b). Such increase in floor area shall not be permitted for buildings
that exceed a FAR of 3.0:1 in the CD-C subdistrict or a FAR of 2.0:1 in the CD-N or CD-S
subdistricts, except as provided in subsection (5).
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(5) Historic Bonus for Over-Sized buildings
A building in Historic Category 1 or 2 that is undergoing historic rehabilitation and
that currently exceeds a FAR of 3.0:1 if located in the CD-C subdistrict or 2.0:1 if located in
the CD-S or CD-N subdistricts shall nevertheless be allowed to obtain a floor area bonus of
50% of the maximum allowable floor area for the site of the building, based upon a FAR of
3.0:1 if in the CD-C subdistrict and a FAR of 2.0:1 in the CD-S and CD-N subdistricts, subject
to the restrictions in subsection (b) and the following limitation:
(A) The floor area bonus shall not be used on the site of the Historic Category 1 or 2
building, but instead may be transferred to another property or properties under the
provisions of Section 18.18.080.
SECTION 3. Section 18.18.080 (Transfer of Development Rights) of Title 18 (Zoning)
of the Palo Alto Municipal Code is amended to read as follows:
18.18.080 Transfer of Development Rights
(a) Purpose
The purpose of this section is to implement the Comprehensive Plan by encouraging
seismic rehabilitation of buildings in Seismic Categories I, II, and III, and encouraging historic
rehabilitation of buildings or sites in Historic Category 1 and 2, and by establishing
standards and procedures for the transfer of specified development rights from such sites
to other eligible sites. Except as provided in subsection (e)(1) and for city-owned properties
as provided in Chapter 18.28, this section is applicable only to properties located in the CD
district, and is the exclusive procedure for transfer of development rights for properties so
zoned.
(b) Establishment of Forms
The city may from time to time establish application forms, submittal requirements,
fees and such other requirements and guidelines as will aid in the efficient implementation
of this chapter.
(c) Eligibility for Transfer of Development Rights
Transferable development rights may be transferred to an eligible receiver site
upon:
(1) certification by the city pursuant to Section 18.18.070 of the floor area from the
sender site which is eligible for transfer, and
(2) compliance with the transfer procedures set forth in subsection (h).
(d) Availability of Receiver Sites
The city does not guarantee that at all times in the future there will be sufficient
eligible receiver sites to receive such transferable development rights.
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(e) Eligible Receiver Sites
A site is eligible to be a receiver site only if it meets all of the following criteria:
(1) It is located in the CD commercial downtown district, or is located in a
planned community (PC) district if the property was formerly located in the CD commercial
downtown district and the ordinance rezoning the property to planned community (PC)
approves the use of transferable development rights on the site.
(2) It is neither an historic site, nor a site containing a historic structure, as
those terms are defined in Section 16.49.020(e) of Chapter 16.49 of this code; and
(3) The site is either:
(A) located at least 150 feet from any property zoned for residential use, not
including property in planned community zones or in commercial zones within the
downtown boundaries where mixed use projects are.
(B) separated from residentially zoned property by a city street with a width
of at least 50 feet, and separated from residentially zoned property by an intervening
property zoned CD-C, CD-S, or CD-N, which intervening property has a width of not less than
50 feet.
(f) Limitations On Usage of Transferable Development Rights
No otherwise eligible receiver site shall be allowed to utilize transferable
development rights under this chapter to the extent such transfer would:
(1) Be outside the boundaries of the downtown parking assessment district,
result in a maximum floor area ratio of 0.5 to 1 above what exists or would otherwise be
permitted for that site under Section 18.18.060, whichever is greater, or result in total
additional floor area of more than 10,000 square feet.
(2) Be within the boundaries of the downtown parking assessment district,
result in a maximum floor area ratio of 1.0 to 1 above what exists, or would otherwise be
permitted for that site under Section 18.18.060, whichever is greater, or result in total
additional floor area of more than 10,000 square feet.
(3) Cause the development limitation or project size limitation set forth in
Section 18.18.040 to be exceeded.
(4) Cause the site to exceed 3.0 to 1 FAR in the CD-C subdistrict or 2.0 to 1
FAR in the CD-S or CD-N subdistricts.
(g) Parking Requirements
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The first 5,000 square feet of floor area transferred to a receiver site, whether
located in the CD District or in the PC District, shall be exempt from the otherwise-
applicable on-site parking requirements. Any additional square footage allowed to be
transferred to a receiver site pursuant to this chapter shall be subject to the parking
regulations applicable to the district in which the receiver site is located.
(h) Transfer Procedure
Transferable development rights may be transferred from a sender site (or sites) to a
receiver site only in accordance with all of the following requirements:
(1) An application pursuant to Chapter 16.48 of this code for major ARB
review of the project proposed for the receiver site must be filed. The application shall
include:
(A) A statement that the applicant intends to use transferable development
rights for the project;
(B) Identification of the sender site(s) and the amount of TDRs proposed to
be transferred; and
(C) Evidence that the applicant owns the transferable development rights or
a signed statement from any other owner(s) of the TDRs that the specified amount of floor
area is available for the proposed project and will be assigned for its use.
(2) The application shall not be deemed complete unless and until the city
determines that the TDRs proposed to be used for the project are available for that
purpose.
(3) In reviewing a project proposed for a receiver site pursuant to this
section, the architectural review board shall review the project in accordance with Section
16.48.120 of this code; however, the project may not be required to be modified for the
sole purpose of reducing square footage unless necessary in order to satisfy the criteria for
approval under Chapter 16.48 or any specific requirement of the municipal code.
(4) Following ARB approval of the project on the receiver site, and prior to
issuance of building permits, the director of planning and community environment or the
director's designee shall issue written confirmation of the transfer, which identifies both the
sender and receiver sites and the amount of TDRs which have been transferred. This
confirmation shall be recorded in the office of the county recorder prior to the issuance of
building permits and shall include the written consent or assignment by the owner(s) of the
TDRs where such owner(s) are other than the applicant.
(i) Purchase or Conveyance of TDRs - Documentation
(1) Transferable development rights may be sold or otherwise conveyed by
their owner(s) to another party. However, no such sale or conveyance shall be effective
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unless evidenced by a recorded document, signed by the transferor and transferee and in a
form designed to run with the land and satisfactory to the city attorney. The document
shall clearly identify the sender site and the amount of floor area transferred and shall also
be filed with the department of planning and community environment.
(2) Where transfer of TDRs is made directly to a receiver site, the recorded
confirmation of transfer described in subsection (h)(4) shall satisfy the requirements of this
section.
SECTION 4. Subsection 18.18.090(b) (Exceptions to On-Site Parking Requirement) of
Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows:
(b) Exceptions to On-Site Parking Requirement
The requirement for on-site parking provided in subsection (a) of this section shall
not apply in the following circumstances:
(1) The following square footage shall be exempt from the on-site parking
requirement of subsection (a):
(A) Square footage for handicapped access which does not increase the
usable floor area, as determined by Section 18.18.060(e);
(B) An increase in square footage in conjunction with seismic or historic
rehabilitation, pursuant to Section 18.18.070;
(C) An increase in square footage for buildings not in Seismic Category I, II, or
II or Historic Category 1 or 2 pursuant to Section 18.18.070(a)(1);
(D)(B) Square footage for at or above grade parking, though such square
footage is included in the FAR calculations in Section 18.18.060(a).
(2) A conversion to commercial use of a historic building in Categories 1 and 2 shall
be exempt from the on-site parking requirement in subsection (a), provided that the
building is fifty feet or less in height and has most recently been in residential use. Such
conversion, in order to be exempt, shall be done in conjunction with exterior historic
rehabilitation approved by the director of planning and community environment upon the
recommendation of the architectural review board in consultation with the historic
resources board. Such conversion must not eliminate any existing on-site parking.
(3) Vacant parcels shall be exempt from the requirements of subsection (a) of this
section at the time when development occurs as provided herein. Such development shall
be exempt to the extent of parking spaces for every one thousand square feet of site area,
provided that such parcels were at some time assessed for parking under a Bond Plan E
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financing pursuant to Chapter 13.16 or were subject to other ad valorem assessments for
parking.
(4) No new parking spaces will be required for a site in conjunction with the
development or replacement of the amount of floor area used for nonresidential use equal
to the amount of adjusted square footage for the site shown on the engineer's report for
fiscal year 1986-87 for the latest Bond Plan G financing for parking acquisition or
improvements in that certain area of the city delineated on the map of the University
Avenue parking assessment district entitled, "Proposed Boundaries of University Avenue
Off-Street Parking Project #75-63 Assessment District, City of Palo Alto, County of Santa
Clara, State of California," dated October 30, 1978, and on file with the city clerk. However,
square footage which was developed for nonresidential purposes or which has been used
for nonresidential purposes but which is not used for such purposes due to vacancy at the
time of the engineer's report shall be included in the amount of floor area qualifying for this
exemption. No exemption from parking requirements shall be available where a residential
use changes to a nonresidential use, except pursuant to subsection (2).
SECTION 5. Subsection 18.52.070(a) (Parking Regulations for CD Assessment District,
On Site Parking) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as
follows:
(a) On Site Parking
Any new development, any addition or enlargement of existing development, or any use of
any floor area that has never been assessed under any Bond Plan G financing pursuant to
Title 13, shall provide one parking space for each two hundred fifty gross square feet of
floor area, with the following exceptions:
(1) Square footage for:
(A) Handicapped access which does not increase the usable floor area,
pursuant to Section 18.18.070(CD District Floor Area Bonuses).
(B) An increase in square footage granted for seismic rehabilitation, pursuant
to Section 18.18.070 (CD District Floor Area Bonuses).
(C)(B) Category I or II Historic Structures may take advantage of the following
exceptions during the life of the historic building:
(i) An increase in square footage pursuant to CD FAR Exceptions for Historic
Structures as contained in Section 18.49.060 (b)(3), and
(ii)(i) A conversion to commercial use that is 50 feet or less in height
and that has most recently been in residential use, if such conversion is done in conjunction
with exterior historic rehabilitation approved by the director upon recommendation by the
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Architectural Review Board and in consultation with the Historic Resource Board. Such
conversion must not eliminate any existing on-site parking.
(D) A minor increase of two hundred square feet or less, pursuant to CD
district FAR Exceptions for Historic Structures as contained in Section 18.49.060(b)(4).
(E)(C) At or above grade parking, though included in the site FAR calculations
(pursuant to CD district FAR Exceptions for non-historical/non-seismic buildings in Section
18.49.060(a)) shall not be included in the on-site parking regulations of this section.
(2) Vacant parcels subject to redevelopment shall be exempt at the time when
development occurs from the on-site parking requirements of one parking space for each
two hundred fifty gross square feet of floor area to the extent of 0.3 parking spaces for
every one thousand square feet of site area, provided that such parcels were at some time
assessed for parking under a Bond Plan E financing pursuant to Chapter 13.16 or were
subject to other ad valorem assessments for parking.
(3) No new parking spaces will be required for a site in conjunction with the
development or replacement of the amount of floor area used for nonresidential use equal
to the amount of adjusted square footage for the site shown on the engineer's report for
fiscal year 1986-87 for the latest Bond Plan G financing for parking acquisition or
improvements in that certain area of the city delineated on the map of the University
Avenue parking assessment district, entitled Proposed Boundaries of University Avenue Off-
Street Parking Project #75-63 Assessment District, City of Palo Alto, County of Santa Clara,
State of California, dated October 30, 1978, and on file with the city clerk. However, square
footage which was developed for nonresidential purposes or which has been used for
nonresidential purposes but which is not used for such purposes due to vacancy at the time
of the engineer's report shall be included in the amount of floor area qualifying for this
exemption. No exemption parking requirements shall be available where a residential use
changes to a nonresidential use, except pursuant to subdivision (1)(C) of this subsection.
SECTION 6. CEQA. The proposed Ordinance eliminates certain exemptions to the
parking regulations within the Downtown area of the City of Palo Alto, which will result in
projects that will comply with the remaining parking regulations established in the Palo Alto
Municipal Code. Further, each individual project submitted under the revised regulations
will be subject to its own environmental review. Consequently, this ordinance is exempt
from the requirements of the California Environmental Quality Act (CEQA) pursuant to
Section 15061(b)(3) of Title 14 of the California Code of Regulations since it can be seen
with certainty that there is no possibility the adoption and implementation of this
Ordinance may have a significant effect on the environment and Section 15301 in that this
proposed ordinance will have a minor impact on existing facilities.
SECTION 7. Severability. If any provision, clause, sentence or paragraph of this
ordinance, or the application to any person or circumstances, shall be held invalid, such
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invalidity shall not affect the other provisions of this Ordinance which can be given effect
without the invalid provision or application and, to this end, the provisions of this Ordinance
are hereby declared to be severable.
SECTION 8. Applicability to Pipeline Projects. This ordinance shall not apply to any
projects which have received all final planning entitlement approval as of the ordinance’s
effective date. Any bonus square footage certified and recorded under Sections 18.18.070
prior to the effective date of this ordinance shall continue to be exempt from parking to the
extent previously allowed under Sections 18.18.080 and 18.52.070. Staff is authorized to
establish administrative regulations to administer the inventory and transfer of this bonus
square footage.
SECTION 9. Effective Date. This interim ordinance shall be in full force and effect on
the thirty-first date after the date of its adoption, and shall “sunset” (expire) two (2) years
following the effective date, unless extended by Council. Upon expiration of this interim
ordinance, the previous provisions related to parking exemptions contained in Sections
18.18.070(a)(1), 18.18.080(g), 18.18.090(b)(1)(B) and (C),, and 18.52.070(a)(1)(B), (C)(i) and
(D) in effect immediately prior to adoption of this ordinance shall be reinstated.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
NOT PARTICIPATING:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Senior Assistant City Attorney City Manager
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____________________________
Director of Planning & Community
Environment
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Ordinance No. ______
Ordinance of the Council of the City of Palo Alto Amending Chapter 18.52 (Parking
and Loading Requirements) of Title 18 (Zoning) of the Palo Alto Municipal Code to
Eliminate the “Exempt Floor Area” Parking Exemption as Contained in Sections
18.52.060(a)(2) and 18.52.060(c) of the Palo Alto Municipal Code
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Findings and Recitals. The Council of the City of Palo Alto finds and
declares as follows:
A. On October 15, 2012, the City Council imposed a 45-day moratorium on the use
of the “Exempt Floor Area” parking exemptions related to the Downtown and California
Avenue Parking Assessment areas. On December 10, 2012, the City Council further
extended the parking moratorium for an additional year in order to allow time to further
study the issue and develop strategies to address the identified parking issues. The
moratorium is due to expire on December 28, 2013, and if no new ordinance is adopted, the
previous exemptions would be reinstated.
B. The purpose of this ordinance is to amend the zoning code to permanently
delete these “Exempt Floor Area” parking exemptions for properties within the Downtown
and California Avenue Parking Assessment areas.
C. The City of Palo Alto downtown and California Avenue areas have seen an
increase in development and have experienced increases in parking demand, as
documented in downtown and California Avenue monitoring reports produced in the past
five years.
D. According to the Downtown Monitoring Report 2011-2012 provided to the City
Council on March 11, 2013, since 2008, eight projects were approved which included
seismic, historic and minor floor area bonuses totaling 28,676 square feet, with parking
exemptions granted equivalent to 115 parking spaces. In addition as of October 1, 2013,
there are three additional projects pending in the Downtown totaling approximately 77,788
square feet and requesting parking exemptions equivalent to 100 parking spaces.
E. No new parking structures have been added to the City’s inventory since 2003.
F. In addition, the overall vacancy rate within the Commercial Downtown (CD)
zoning district has dropped from a high rate of 6.39 percent in 2008-2009 to a 1.6 percent
rate in the 2011-2012 reporting period.
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G. The Downtown Parking Survey conducted in Spring of 2013 shows that within
the Commercial Downtown core area, on-street parking occupancy between 12:00 noon
and 2:00 p.m. reached 87.9 percent overall.
H. According to the Downtown Parking Study, parking in hourly public lots and
garages was at 87.2% occupancy, while permit parking in public lots and garages was at
65.9% occupancy.
I. The Spring 2013 and Fall 2012 Downtown Parking Surveys also show that
compared to previous years, on-street parking use has increased in the Downtown North,
Professorville and South of Forest Avenue neighborhoods.
J. The City is experiencing increased office occupancy as employers are beginning
to transform work spaces from individual offices or cubicles to open space concepts
permitting more employees per square foot.
K. Increased demand for parking caused by recent addition of office square
footage, increased office occupancy and an upswing in downtown retail activity has been
coupled with a decreasing supply of parking due to the use of existing parking exemptions
in new development and lack of a robust transportation demand management program.
L. The Downtown Parking Code was adopted at a time when the downtown was
underdeveloped and incentives for redevelopment were needed. One of the primary
incentives incorporated into the Code was a series of parking exemptions. These parking
exemptions were exceedingly successful in encouraging both the rehabilitation of historic
and seismically unsafe buildings and redevelopment in the Downtown core in general. The
City is now at a point where most of the historic and seismically unsafe buildings have been
renovated and the downtown has transformed into an economically thriving area.
M. The City is experiencing increased office occupancy as employers are beginning
to transform work spaces from individual offices or cubicles to open space concepts
permitting more employees per square foot.
N. The lack of available daytime downtown and California Avenue parking for
employees has resulted in complaints from both merchants and other businesses about the
lack of parking for their employees.
O. The lack of available daytime downtown and California Avenue parking for
employees has also resulted in complaints from residents in the downtown, California
Avenue and adjacent areas about congested parking in their neighborhoods.
P. The lack of available daytime downtown and California Avenue parking results in
traffic seeking available parking spaces to circulate for longer periods of time, resulting in
related impacts on air quality from increased emissions.
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Q . The Palo Alto Zoning Ordinance Chapter 18.52 (Parking and Loading
Requirements) provide for a variety of exemptions and reductions to parking requirements
within the downtown and California Avenue areas that result in less parking being provided
than the calculated demand for parking in new projects.
SECTION 2. Section 18.52.060 (Parking Assessment Districts and Areas - General)
of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended to read as follows:
18.52.060 Parking Assessment Districts and Areas - General
(a) Definitions
(1) Parking Assessment Areas"
Parking assessment areas" means either:
The "downtown parking assessment area," which is that certain area of the city
delineated on the map of the University Avenue parking assessment district
entitled Proposed Boundaries of University Avenue Off-Street Parking Project No. 75-63
Assessment District, City of Palo Alto, County of Santa Clara, State of California, dated
October 30, 1978, and on file with the city clerk; or
The "California Avenue area parking assessment district," which is that certain area
of the city delineated on the map of the California Avenue area parking assessment district
entitled Proposed Boundaries, California Avenue Area Parking Maintenance District, dated
December 16, 1976, and on file with the city clerk;
(2) “Exempt Floor Area"
Within the downtown parking assessment area, "exempt floor area" means all or a
portion of that floor area of a building which is located at or nearest grade and which does
not exceed a floor area ratio of 1.0 to 1.0;
Within the California Avenue area parking assessment district, "exempt floor area"
means either:
(A) All or a portion of that floor area of a building which is located at or nearest
grade and which does not exceed a floor area ratio of 0.5 to 1.0 or
(B) The amount of floor area shown on the 1983-84 California Avenue area
assessment district rolls in the engineer's report for bonds issued pursuant to Title 13 of the
municipal code, whichever is greater.
(b) In-lieu fees
Except as provided in subsection (c) below, within any parking assessment district
established by the city for the purpose of providing off-street parking facilities, all or a
portion of the off-street parking requirement for a use may be satisfied by payment of
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assessments or fees levied by such district on the basis of parking spaces required but not
provided.
(c) Exempt Floor Area
(1) Unless a project for the construction of floor area has received design
approval prior to December 19, 1983, or has undergone preliminary review pursuant to
Sections 18.76.020 and 18.77.070 on December 1st or 15th, 1983, the only portion of
off-street parking required for construction of floor area in a parking assessment area
which may be satisfied by payment of assessments or levies made within such area on
the basis of parking spaces required but not provided, is that portion of the parking
requirements associated with the uses proposed to be conducted in that area of the
floor equal to the exempt floor area for the site. Where only a portion of floor area
constitutes exempt floor area, and uses with more than one parking standard as
required by this chapter are proposed for said floor, the use on that portion of the floor
which generates the highest parking requirement will be designated as the exempt floor
area.
(2) All other required off-street parking that is not satisfied by such payment
of assessments shall be provided in accordance with this chapter.
(3) This subsection shall be interpreted to allow changes in the use of all
exempt floor area and nonexempt floor area existing as of February 16, 1984 without
requiring additional parking; provided, that the change in use does not consist of a
change from residential to nonresidential, or an increase in actual floor area which does
not constitute exempt floor area.
(4) No project which has received design approval prior to December 19,
1983, or which has undergone preliminary review on December 1st or 15th, 1983, shall
increase the amount of floor area approved or reviewed or decrease the area designed
or intended for parking without meeting the requirements of this chapter.
SECTION 3. CEQA. The proposed Ordinance eliminates certain exemptions to the
parking regulations within the Downtown and California Avenue areas of the City of Palo
Alto, which will result in projects that will comply with the remaining parking regulations
established in the Palo Alto Municipal Code. Further, each individual project submitted
under the revised regulations will be subject to its own environmental review.
Consequently, this ordinance is exempt from the requirements of the California
Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of Title 14 of the
California Code of Regulations since it can be seen with certainty that there is no possibility
the adoption and implementation of this Ordinance may have a significant effect on the
environment and Section 15301 in that this proposed ordinance will have a minor impact on
existing facilities.
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SECTION 4. Severability. If any provision, clause, sentence or paragraph of this
ordinance, or the application to any person or circumstances, shall be held invalid, such
invalidity shall not affect the other provisions of this Ordinance which can be given effect
without the invalid provision or application and, to this end, the provisions of this Ordinance
are hereby declared to be severable.
SECTION 5. This ordinance shall be effective on the thirty-first date after the date of
its adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
NOT PARTICIPATING:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Senior Assistant City Attorney City Manager
____________________________
Director of Planning &
Community Environment
City of Palo Alto (ID # 4139)
City Council Staff Report
Report Type: Action Items Meeting Date: 10/21/2013
City of Palo Alto Page 1
Summary Title: Parking Exemptions Code Ordinances
Title: Parking Exemptions Code Review: Review and Recommendation to City
Council to Adopt: 1. Ordinance to Repeal Ordinance 5167 and Amend the
Palo Alto Municipal Code to Delete Sections 18.52.060(a)(2) and 18.52.060(c)
Related to Parking Assessment Districts to Eliminate the “Exempt Floor Area”
Parking Exemption Which Allows for Floor Area up to a Floor Area Ratio (FAR)
of 1.0 to 1.0 to be Exempt From Parking Requirements Within the Downtown
Parking Assessment Area and Floor Area up to an FAR of 0.5 to 1.0 to be
Exempt Within the California Avenue Area Parking Assessment District. 2.
Interim Ordinance to Amend Chapters 18.18, Downtown Commercial (CD)
District, and 18.52, (Parking and Loading Requirements) to Make the
Following Changes to be Effective for a Period of Two Years: a. Delete
Sections 18.18.070(a)(1), 18.18.090(b)(1)(C) and 18.52.070(a)(1)(D) to
Eliminate the 200 Square Foot Minor Floor Area Bonus and Related Parking
Exemption for Buildings not Eligible for Historic or Seismic Bonus. b. Delete
Sections 18.18.090(b)(1)(B), 18.52.070(a)(1)(B) and 18.52.070(a)(1)(C)(i) to
Eliminate the Parking Exemption for On-site Use of Historic and Seismic
Bonus. c. Amend Section 18.18.080(g) to Remove the On-site Parking
Exemption for Historic and Seismic Transfer of Development Rights up to
5,000 Square Feet of Floor Area to a Receiver Site in the CD or PC Zoning
Districts. d. Amend Section 18.18.120(a)(2) and (b)(2) Related to
Grandfathered Uses and Facilities to Clarify that a Grandfathered Use May be
Remodeled and Improved, But May Not be Replaced and Maintain its
Grandfathered Status. e. Amend Section 18.52.070(a)( 3) Related to Remove
the Sentence Allowing Square Footage to Qualify for Exemption That Was
Developed or Used Previously for Nonresidential Purposes but was Vacant at
the time of the Engineer's Report. These actions are exempt from the
California Environmental Quality Act (CEQA) under Section 15061 and 15301
of the CEQA Guidelines.
From: City Manager
City of Palo Alto Page 2
Lead Department: Planning and Community Environment
Recommendation
Staff and the Planning and Transportation Commission (PTC) recommend that Council adopt:
1. An Ordinance to amend the Palo Alto Municipal Code (PAMC) to permanently delete
Sections 18.52.060(a)(2) and 18.52.060(c) related to Parking Assessment Districts to
eliminate the “Exempt Floor Area” parking exemption which allows floor area up to a
floor area ratio (FAR) of 1.0 to 1.0 to be exempt from parking requirements within the
Downtown Parking Assessment Area, and floor area up to an FAR of 0.5 to 1.0 to be
exempt within the California Avenue area parking assessment district (Attachment A);
and
2. An Interim Ordinance (Attachment B) to amend PAMC Chapters 18.18, Downtown
Commercial (CD) District, and 18.52 (Parking and Loading Requirements), to make the
following changes, to be effective for a period of two years:
a. Delete Sections 18.18.070(a)(1), 18.18.090(b)(1)(C) and 18.52.070(a)(1)(D) to
eliminate the 200 square foot Minor Floor Area Bonus and related parking
exemption for buildings not eligible for Historic or Seismic Bonus.
b. Delete Sections 18.18.090(b)(1)(B), 18.52.070(a)(1)(B) and
18.52.070(a)(1)(C)(i) to eliminate the parking exemption for on-site use of
Historic and Seismic Bonus.
c. Amend Section 18.18.080(g) to remove the on-site parking exemption for
floor area bonuses derived through historic and seismic upgrades via the
transfer of development rights (TDR) program (where up to 5,000 square feet
(SF) of floor area for each type of upgrade is allowed for receiver sites in the
CD or downtown PC zoning districts).
d. Amend Sections 18.18.120(a)(2) and (b)(2) related to Grandfathered Uses and
Facilities to clarify that a grandfathered use/facility may be remodeled and
improved while maintaining ‘grandfather’ status, but that the floor area may
not be demolished and replaced onsite while maintaining such
‘grandfathered’ status.
e. Amend Section 18.52.070(a)(3) to disallow the parking exemption for floor
area developed or used previously for non-residential purposes and vacant at
the time of the engineer’s report during the parking district assessment.
Executive Summary
The Palo Alto Municipal Code (PAMC) Chapter 18.80 sets forth the process for amendments to
the City’s zoning regulations. The attached ordinances would amend the City’s zoning
regulations related to exemptions from provision of parking spaces for the development of new
floor area. The ordinances are recommended unanimously by the PTC and staff and would
City of Palo Alto Page 3
become effective 31 days following Council adoption. The City Council is requested to consider
and adopt the first ordinance (Attachment A) before mid-November, as it amends Chapter 18.52
to address “Exempt Floor Area parking exemption” in both the Downtown and California
Avenue Parking Assessment Districts. Adoption by mid-November would allow this ordinance to
become effective before the end of the current moratorium on Exempt Floor Area Parking
Exemptions, December 28, 2013. The Interim Ordinance (Attachment B) addresses parking
exemptions related to floor area bonuses, and is proposed to expire in two years (sunset) from
the date of Council action unless the ordinance is replaced by a permanent code change or
otherwise modified.
Pursuant to Section 18.80.090, the attached Ordinances include findings as to why the public
interest or general welfare requires these amendments. The findings cited to support the urgent
need for limiting parking exemptions in the Downtown Assessment District include the increase
in development within the past five years, including eight projects approved between 2008 and
2012 which included seismic, historic and minor floor area bonuses totaling 28,676 square feet
with parking exemptions granted equivalent to 115 parking spaces. In addition, as of October 1,
2013, there are three additional projects pending in the downtown totaling approximately
77,788 square feet and requesting exemptions equivalent to 100 parking spaces. Also, there
have been no new parking structures added to the City’s inventory since 2003 and there has
been a drop in the downtown commercial vacancy rate from a high of 6.39 per cent in 2008-
2009 to a 1.6 per cent rate in the 2011-2012 reporting period. The Downtown Parking Survey
conducted in Spring of 2013 shows that within the downtown core area, the on-street parking
occupancy between 12:00 noon and 2:00 p.m. reached 87.9 per cent overall, and parking in
hourly public lots and garages was at 87.2 per cent occupancy, while permit parking was at 65.9
per cent occupancy. The parking surveys also show that compared to previous years, on-street
parking use has increased in the Downtown North, Professorville and South of Forest Avenue
neighborhoods.
Background
Planning and Transportation Commission Review
On September 25, 2013, the Planning and Transportation Commission (PTC) reviewed and
recommended, by a 5-0-2 vote (Commissioners Tanaka and Martinez absent), the two attached
ordinances relating to parking exemptions in the zoning code. The PTC Report and meeting
minutes are provided as Attachments F and G. The Commissioners noted that the ordinances
are a step in the right direction. They discussed how charging higher in-lieu fees for not
providing required parking on a site could incentivize providing parking on site, and how an
update to the parking ratio and further progress in transportation demand management, such
as looking at incentives for other modes of transportation to bring fewer cars downtown and
using a business registry to obtain mode data from businesses, are needed. The PTC wanted to
ensure there are clear guidelines for what constitutes “remodel”, given that the interim
ordinance was written to disallow only replacement of grandfathered facilities. Commissioners
City of Palo Alto Page 4
also noted that the parking exemptions were put in place as incentives based on conditions at
that time; however, based on current conditions they are no longer needed. The
Commissioners would like to see the long term planning efforts, such as the update of the
Comprehensive Plan and the California Avenue Concept Plan move forward to provide guidance
on development and parking issues.
There were four public speakers, including three residents of Professorville or Downtown North
and one property owner with a planning application pending review by the Architectural Review
Board (scheduled October 17, 2013). The residents noted concern with destruction of
neighborhoods and the applicability of the California Environmental Quality Act (CEQA) and that
the intrusion of parking into the neighborhoods has increased over the years. Two of these
speakers asked that the City stop approvals of all permits via a moratorium. The property
owner (of 636 Waverley) noted that his project would be directly affected by a moratorium. He
also noted that his project included a 200 sf bonus floor area. Staff looked into this and can
confirm that the bonus floor area is requested for additional residential area above the 1:1
allowable residential floor area. However, it is not associated with exemption for parking since
residential parking is determined by the number of bedrooms; i.e. two or more bedrooms
require the provision of two covered parking spaces on site, not total floor area.
Council Direction
On July 16, 2012, the City Council considered the status of ongoing parking efforts for the
Downtown and directed staff to look at a variety of approaches to address the concerns of
businesses and neighbors. Council requested an evaluation of existing zoning regulations, and
an assessment of realistic parking ratios and the desirability and viability of parking exemptions.
Following that meeting, staff identified one particular parking exemption, applicable to the
Downtown and California Avenue assessment districts likely to exacerbate the parking problems
without providing a public purpose. This provision had allowed exemptions from parking
requirements for any property within the two parking assessment districts; specifically, up to a
1:1 floor area ratio (FAR) in the Downtown Assessment District and up to a 0.5:1 ratio in the
California Avenue Assessment District.
On October 15, 2012, the City Council adopted an Interim Urgency Ordinance that established a
45-day moratorium on the use of this “Exempt Floor Area” parking exemption pending further
study of Downtown and California Avenue parking issues (refer to Attachment C, CMR Report
and Minutes Excerpt dated October 15, 2012). On December 10, 2012, the City Council adopted
another Interim Urgency Ordinance to extend this moratorium for a period of one year through
December 28, 2013 (refer to Attachment D, CMR Report and Minutes Excerpt dated December
15, 2012).
On March 18, 2013, the Council gave additional direction on several items related to parking
City of Palo Alto Page 5
policy. This included directing staff to review and provide recommendations on Municipal Code
parking exemptions and the City’s Transfer of Development Rights (TDR) program. Since that
time, staff has examined the Municipal Code, and is recommending the subject changes. It is
important to note that this is the first step. Staff will most likely have additional
recommendations in the coming year. While the staff recommended interim suspension of the
subject parking exemptions is narrowly focused in the Downtown area, future
recommendations may be citywide and/or more comprehensive in nature. Furthermore, the
subject “interim” changes may or may not be recommended for permanent inclusions after
additional analysis is conducted during the two-year, interim stage.
Description of Proposed Ordinances
There are two types of ordinances under review. The first is a standard ordinance revision
permanently eliminating the Chapter 18.52 definition and rules for “Exempt Floor Area” within
the boundaries of the City’s two assessment districts. The ordinance would permanently
eliminate the use of this parking exemption for floor area of a building “at or nearest grade”.
This would affect the Downtown and California Avenue Parking Assessment Districts.
The second ordinance focuses on several parking exemptions that only affect downtown
properties zoned Commercial Downtown (CD), whether inside or outside the assessment
district. This is an interim ordinance which would be in effect for a trial 2-year period.
Ordinance to Eliminate the Exempt Floor Area Parking Exemptions: The first ordinance would
make permanent the elimination of the “Exempt Floor Area” parking exemptions related to the
Downtown and California Avenue Parking Assessment Districts. There is currently a one year
moratorium on the use of this exemption that expires on December 28, 2013. In the Downtown
Assessment District Area, this zoning code section allows floor area equal to the lot size to be
“un-parked”. For example, on a 10,000 sq. ft. property, the first 10,000 sq. ft. of building would
have to provide zero parking spaces. This provision was originally included in the zoning code in
the 1980s to encourage downtown development by providing a benefit to offset the parking
assessments enacted at that time. This was also done at the same time when properties were
downzoned within the downtown area. This strategy was successful in its time, but the
downtown area is now thriving and the exemption is no longer needed to encourage
development.
In the California Avenue Assessment District Area, this code section allows floor area equal to
half the lot size to be un-parked. For example, on a 10,000 square foot lot in the California
Avenue area, the first 5,000 sq. ft. of building would have to provide zero parking. Given that
there is no longer a need to incentivize development in the Downtown and California Avenue
areas and parking shortages are prevalent, the permanent elimination of this unnecessary
parking exemption is recommended.
City of Palo Alto Page 6
Interim Ordinance to Eliminate other Parking Exemptions within the Downtown Area: Since the
Council direction given in March, staff identified four (4) key areas where additional code
changes could be made to eliminate future use of parking exemptions for properties in the
Downtown area zoned CD. The second ordinance would be an interim ordinance for a period of
two years to eliminate the following four code provisions related to floor area and parking only
within the CD zone district.
1. Parking Exemptions Associated with the Transfer of Development Rights (TDR) Program:
The TDR program encourages seismic and historic rehabilitation of buildings within the
CD district by allowing for the transfer of certain development rights to eligible CD-zoned
sites that are not historic properties. These provisions include both transfer of bonus
floor area to another site and provisions for exempting some of the bonus floor area
from parking requirements. The program has been successful and has resulted in
seismic and historic restoration of many older buildings in the Downtown area.
However, staff believes an incentive can still be provided through bonus FAR area,
without increasing nearby parking issues. The Interim Ordinance, therefore, would
prohibit the creation of new bonuses as they relate to parking. Specifically, 5,000 SF of
transferred bonus floor area to a site would no longer be exempt from on-site parking
requirements. This exemption has been applied to floor area transferred to a receiver
site within a CD or PC district from another CD-zoned site or even from an RT zoned site
within the SOFA district. TDRs that have already been approved and earned under
existing zoning code provisions before the effective date of this ordinance would still be
allowed to be utilized. Likewise, “receiver” properties could still utilize TDRs for parking
exemptions that were transferred after the effective date of the ordinance provided they
came from qualfiying “sender” sites that had earned the TDRs before the effective date
of the ordinance. Eliminating the use of already approved and earned TDRs would likely
be subject to judicial challenge under a “takings” or “vested rights” legal theory. Staff is
expecting to address the provision of parking related to already earned TDRs during
future recommendations.
2. Minor Exemptions for Buildings Not Eligible for Historic or Seismic Bonus: The CD zone
district regulations also contain an exemption that allows a one time 200 square foot
floor area bonus increase for any building that does not qualify for the seismic or historic
bonuses. This increase, which has been used to increase floor area in both new buildings
and existing buildings, does not count towards the site’s gross floor area (GFA) and floor
area ratio (FAR), and is exempt from on-site parking requirements. Although it is minor,
any CD zoned property not eligible for the other bonuses may request it and the impacts
have been and will continue to be cumulative. The Interim Ordinance proposes to
eliminate this 200 square foot minor floor area bonus.
City of Palo Alto Page 7
3. Grandfathered Uses and Facilities: The CD Zone District contains provisions for
“grandfathered uses and facilities” that allow continuation of uses and rebuilding of
facilities that were in place prior to August 28, 1986 but which are no longer conforming
to the standards of the district. One of the provisions allows that the grandfathered
uses/facilities are permitted to remodel, improve or replace site improvements on the
same site as long as it is within the same footprint and does not result in an increase in
floor area, height, building envelope or building footprint. Because the existing code
language allows replacement of a grandfathered facility’s “site improvements”, this
provision has been used when completely rebuilding a structure to allow the same
amount of floor area without providingparking for the replacement floor area that is
considered “grandfathered”. Any additional square feet beyond that grandfathered must
be served by on site parking. The Interim Ordinance proposes to clarify that one may
remodel or improve the grandfathered floor area and keep the parking exemption, but
the floor area may not be demolished and rebuilt into a replacement structure. Staff
believes that this exemption will not be proposed for permanent elimination in entirety
after the interim ordinance as it could “lock” property owners into older buildings that
do not function well for modern businesses. However, during this interim period, staff
would like to quantify the impact of building modernization, particularly in terms of
parking, so that suitable impact fees, conditions and/or municipal code provisions can
be incorporated.
4. Unoccupied/Vacant Floor Area Exemption: This portion of the interim ordinance would
eliminate, with respect to properties within the CD assessment district, a sentence in
Section 18.52.070(a)(3) allowing exemption for existing floor area developed or used
previously for nonresidential purposes but unoccupied at the time of the engineer’s
report for the parking district assessment. In other words, as currently written, the
Municipal Code allows for floor area that was unoccupied at the time the Downtown
Assessment District was created, and therefore not assessed, to be “grandfathered” for
rebuilding purposes. These properties are not responsible for providing or paying for
additional parking when a building is razed and rebuilt, even though payments were not
made to the assessment district for the previously unoccupied square footage. The
interim ordinance will eliminate this existing inequity in the Code.
Discussion
TDR Categories
In 1986, the City enacted its TDR program designed to encourage private property owners to
upgrade seismically unsafe buildings and to encourage preservation of known historic buildings
in the downtown area zoned CD. Lacking the financial resources to provide monetary incentives
for safety upgrades and historic preservation, the City instead adopted development regulations
that would provide property owners in the downtown area incentive to upgrade and preserve
their properties through a bonus program. In 2002, the TDR program was expanded to the
City of Palo Alto Page 8
SOFA 2 area.
According to City records, the downtown has approximately 78 buildings that are eligible for a
seismic or historic bonus under the TDR program. These buildings fall into three general
categories: (1) properties which have applied for and received TDRs under the City’s ordinance;
(2) properties which have been seismically or historically upgraded, but which have not applied
for or received TDRs and (3) properties which may be eligible for TDRs, but which have chosen
not to upgrade.
Table 3 summarizes the potential TDR bonuses and parking exemptions of the 78 eligible
historic and seismic buildings previously identified by the City. (Note that some of the City’s
records are incomplete and therefore this table is subject to further refinement.)
Table 3: TDR Bonuses for Originator Sites by Entitlement, October 2013
Origination Type Floor Area Parking
Exemptions
Number of
Properties
Properties with Documented Bonuses & TDRs
Downtown 123,783 471 32
SOFA 7,813 31 3
City Owned 7,500 30 3
Sub-Total 139,095 532 38
Property Upgraded, No Claim
Downtown 29,307 117 11
SOFA 7,500 30 3
City Owned 0 0 0
Sub-Total 36,807 147 14
Eligible Properties but not Upgraded
Downtown 65,976 264 25
SOFA 2,500 10 1
City Owned 0 0 0
Sub-Total 68,476 274 26
GRAND TOTAL 244,378 998 78
Notes:
City of Palo Alto Page 9
1. City Owned properties include three properties outside of the Downtown area that could only be used in
the Downtown area. Properties included: Children’s' Library, College Terrace Library, and Sea Scout
Building.
2. TDRs generated in the SOFA may be used on site or transferred into the downtown area. Assumption is
that SOFA current remaining 5,000SF (20 parking) TDRs will be transferred into the downtown area.
Thus, if all TDR bonuses were in fact utilized, there would be a total of 244,378 additional
square feet added to the downtown and a total of 953 exempt parking spaces.
While all properties in fact did not take advantage of the TDR program, the City’s data collected
to date shows that the TDR program was successful in incentivizing the private redevelopment
and upgrade of historic and seismically unsafe buildings in the downtown. Table 4 summarizes
the TDRs that were created, the TDRs that were transferred to a receiver site, the TDRs that
were used on site and finally the TDRs that were created but which still remain. (Again note
that some of the City’s records are incomplete and it is expected that these numbers will be
further refined.)
Table 4: Documented TDR Bonuses Used in the Downtown Area by Origin, October, 2013
Floor Area Parking
Exemptions
Number of
Properties
Properties with Documented Bonuses & TDR's By Origination
Downtown 123,783 471 32
SOFA 7,813 31 3
City Owned 7,500 30 3
Total 139,095 532 38
TDR's Transferred
Downtown 57,926 212 14
SOFA 2,000 8 1
City Owned 2,500 10 1
Total 62,426 230* 16
TDR's Used On Site
Downtown 47,586 219 20
SOFA 2,000 8 1
City Owned 0 0 0
Total 58,022 229* 21
City of Palo Alto Page 10
TDR's Remaining
Downtown 10,334 40 7
SOFA 3,313 13 2
City Owned 5,000 20 2
Total 18,647 73 11
*Some FAR transferred was not eligible for parking exemption.
Thus, according to the City’s records there are currently 18,647 square feet of TDRs that have
not been used and 73 available parking space exemptions.
Approved and Pending Projects
The Council has fairly broad discretion to decide how new regulations should be applied to
projects that have begun planning review but not received final planning entitlements. (These
pending projects are generally referred to as “pipeline” projects.) However, under State law,
projects that have obtained their entitlements and building permits and have begun work in
reliance on the building permit are largely exempt from new zoning provisions. (This is
sometimes referred to as the “vested rights doctrine.”) A key issue raised when the moratorium
on use of the “exempt floor area” parking was adopted in 2012 was the applicability of the
ordinance to projects that were in process (on file, pending decisions by the Director, Council or
building permit issuance). At that time, Council elected to exempt projects that had received
building permits, and those who had received Planning Permit approval. Planning projects that
had been submitted, but not yet approved, were subject to the moratorium. While Council is
required to exempt projects receiving building permits, it is a policy call whether to exempt
projects that are in earlier phases of entitlement review. As noted in the table below, there are a
number of projects that have received recent planning approval or are currently under planning
review.
City of Palo Alto Page 11
Table 5 – Summary of Approved Planning Entitlements with Parking Exemptions
Address Description Subject Parking
Exemptions
Applied
(# of spaces)
Planning
Entitlement
Status
Building Permit
Status
135 Hamilton A four-story 28,085 square foot mixed-use
building (19,998 square feet commercial
and two residential units) and below grade
parking on a vacant lot. Zone: CD-C(P)
(exemption using 5000 Sf TDR and 200 SF
exemption)
TDR 20
Bonus 1
Total 21
Approval
Effective 2/7/13
Building Permit
under review.
It is expected
that this permit
will be issued
prior to
ordinance
adoption.
611 Cowper A 34,703 square foot four-story mixed use
building (three floors commercial and one
floor residential) with below grade
parking, replacing two buildings totalling
7,191 SF commercial floor area and 1,270
SF residential floor area. Zone: CD-C(P)
(Exemption using grandfathered spaces,
10,000 SF TDR exemption and 400 SF
exemptions for two parcels)
Grandfather: 11
TDR 40
Bonus 2
Total 53
Approval
Effective 8/16/13
No Building
Permit
Application
submitted to
date
Table 6 – Summary of Pending Applications Requesting Subject Exemptions
Address Request Subject Parking
Exemptions
Applied
(# of spaces)
Planning
Entitlement
Status
Building Permit
Status
240 Hamilton A 15,000 square foot mixed use building,
replacing an (approx.) 7,000 SF building
(building plus mezzanine). Zone: CD-C(P)
(Exemption using 4,327 SF TDR exemption,
200 SF bonus, and “grandfathered” floor
area, including 2,000 that was not
assessed)
Grandfather: 8
TDR 17
Bonus 1
Total 26
Approved 7/23/13
but
Appealed to
Council. Hearing
to be scheduled.
Not Applicable
261 Hamilton Application for relocation of basement SF
in retail storage use to third story office
atop an historic category III,
“grandfathered” commercial building (over
3.0:1 FAR) having 38,926 SF (37,800 SF
assessed for parking); 37,800 SF
retail/office at end. Zone: CD-C(GF)(P).
(requesting creation of 15,000 SF FAR TDR
via rehabilitation).
No Subject
Exemptions
Applied – Bonus
Floor Area to be
used off site equal
to 60 parking space
exemption
Formal ARB
submitted
6/18/13
Not applicable
City of Palo Alto Page 12
Address Request Subject Parking
Exemptions
Applied
(# of spaces)
Planning
Entitlement
Status
Building Permit
Status
429 University 22,750 SF building with below grade
parking for 29 cars, replacing
“grandfathered” building. Zone: CD-
C(GF)(P).(exemption using 5,000 SF TDR,
200 SF bonus and grandfathered building).
Grandfather:TBD1
TDR 20
Bonus 1
Total TBD2
Prelim ARB
submitted
9/12/13
Not applicable
261 Hamilton Application for relocation of basement SF
in retail storage use to third story office
atop an historic category III,
“grandfathered” commercial building (over
3.0:1 FAR) having 38,926 SF (37,800 SF
assessed for parking); 37,800 SF
retail/office at end. Zone: CD-C(GF)(P).
(requesting creation of 15,000 SF FAR TDR
via rehabilitation).
No Subject
Exemptions
Applied – Bonus
Floor Area to be
used off site equal
to 60 parking space
exemption
Formal ARB
submitted
6/18/13
Not applicable
640 Waverley ARB application for a new 10,463 SF mixed
use building with 2 dwelling units and
5,185 SF commercial area (replacing 1,829
SF of “grandfathered” floor area) providing
17 spaces. Zone: CD-C(P). (exemptions
grandfathered, mixed-use parking
reduction and 200 SF bonus).
TBD3 Prelim ARB
submitted
9/16/13
Not applicable
500 University Three-story 26,806 SF commercial building
replacing 15,899 SF previously assessed
for 64 spaces not provided on site;
includes 24 parking spaces below grade.
Zone: CD-C(GF)(P). (Exemption using
grandfathered building, TDR and 200 SF
bonus).
TDR 20
Bonus 1
Total 21
Prelim ARB
reviewed. No
formal submittal.
Not applicable
301 High Addition and remodel of existing building.
Proposes 6,706 SF (including existing 6,255
SF plus bonus an ADA area). Zone: CD-
N(P). (requests 200 SF bonus).
Bonus 1 Formal ARB
Submitted
5/20/13
Not applicable
1 TBD = To be determined; project was recently submitted and floor area and parking determination are still under
review.
2 Ibid.
3 Ibid.
City of Palo Alto Page 13
In light of Council’s previous policy decision on this issue, staff makes the following
recommendations for pipeline projects:
1:1 Exemption Elimination: Apply new ordinance to all pipeline projects that have not
received final planning entitlement approval
200 Square Foot Bonus Exemption Elimination: Apply interim ordinance to all pipeline
projects that have not received final planning entitlement approval
On and Off site use of TDR Parking Exemption: Only apply to newly created TDRs. TDRs
approved and created before effective date of interim ordinance eligible for on or off site
parking exemption. TDRs created after effective date of ordinance would be eligible for
square footage bonus, but not parking bonus.
Grandfather Exemption Elimination: Apply interim ordinance to all pipeline projects that
have not received final planning entitlement approval
Vacant Building Exemption: Apply to all pipeline projects that have not received final
planning entitlement approval
Next Steps
The Interim Ordinance is proposed to be in place for a period of two years, during which time
staff will study the impacts on development of permanently removing these floor area bonuses
and parking exemptions. Much of this will be done during the policy recommendation phases
of the Downtown Development Cap Study. The following are some of the items that have been
identified for further analysis and consideration: residential parking program, in-lieu parking
provisions, adjustments to parking requirements, SOFA 2 parking exemptions (additional details
below), and other, city-wide parking exemptions. Other adjustments to the Municipal Code may
also be considered. Furthermore, historically made interpretations of the Municipal Code may
be taken to the PTC for consideration and recommendation to Council.
SOFA 2 Plan Area Policies and Programs:
Within the SOFA 2 Plan Area are several sites within the Downtown Assessment District. The
sites are located north of Forest Avenue, between Alma and Emerson Streets. The SOFA 2 Code
allows for parking reductions and exemptions. Residential Transition (RT) zoned sites in the
SOFA 2 area are allowed to participate in the City’s TDR program by transferring bonus floor
area achieved via historic and seismic rehabilitations to CD zoned receiver sites. Bonuses can
also be used within the SOFA 2 area. The same parking exemptions are currently available for
bonus floor area generated in the SOFA 2 area. Following Council action on the propeosed
ordinances, the SOFA 2 regulations and policies related to incentives for bonus floor area may
need to be reviewed in light of the proposed ordinances.
City of Palo Alto Page 14
Policy Implications
The Transportation Element of the Palo Alto Comprehensive Plan contains a primary goal
regarding parking to provide attractive, convenient public and private parking facilities. To
implement this goal, Policy T-45 states: “Provide sufficient parking in the University
Avenue/Downtown and California Avenue business district to address long-range needs.” The
proposed changes to the zoning regulations to eliminate some of the exemptions to the existing
parking requirements will improve parking availability in these areas and would be consistent
with the goals and policies of the Transportation Element of the Comprehensive Plan. (Refer to
Attachment E, Transportation Element Goals and Policies regarding Parking).
The Land Use and Natural and Urban Environment Elements contain the following policies and
programs which encourage the use of incentives to preserve historic buildings and encourage
seismic retrofits.
Land Use Element:
Policy L-56: To reinforce the scale and character of University Avenue/Downtown, promote the
preservation of significant historic buildings.
Program L-59: Allow parking exceptions for historic buildings to encourage rehabilitation.
Require design review findings that the historic integrity of the building exterior will be
maintained.
Program L-60: Continue to use a TDR Ordinance to allow the transfer of development rights
from designated buildings of historic significance in the Commercial Downtown (CD) zone to
non-historic receiver sites in the CD zone. Planned Community (PC) zone properties in the
Downtown also qualify for this program.
Program L-66: Revise existing zoning and permit regulations as needed to minimize constraints
to adaptive reuse, particularly in retail areas.
Natural And Urban Environment Element:
Program N-70: Continue to provide incentives for seismic retrofits of structures in the
University Avenue/Downtown area.
Staff believes the proposed changes remain consistent with the policies above, as historic
rehabilitation incentives would still be provided through the provision of additional floor area
associated with the TDR program. Furthermore, the proposed ordinance would still allow
historic buildings to be renovated and restored to retain their “grandfathered” status.
Resource Impact
The zoning evaluation work would be done within the currently approved work program of the
City of Palo Alto Page 15
Planning and Community Environment Department.
Timeline
The Ordinance establishing the moratorium on the use of Parking Exemptions within the
Downtown and California Avenue Parking Assessment areas will expire on December 28, 2013.
In order for these provisions to stay in effect the permanent ordinance will need to be adopted
by the City Council 31 days prior to the expiration ((by November 27, 2013). City Council action
on an Ordinance requires two actions, an introduction of the ordinance and a second reading.
Environmental Review
The proposed Ordinances eliminate certain exemptions to the parking regulations within the
Downtown and California Avenue areas of the City of Palo Alto, which will result in projects that
will comply with the remaining parking regulations established in the Palo Alto Municipal Code.
Further, each individual project submitted under the revised regulations will be subject to its
own environmental review. Consequently, these ordinances are exempt from the requirements
of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of Title 14
of the California Code of Regulations since it can be seen with certainty that there is no
possibility the adoption and implementation of this Ordinance may have a significant effect on
the environment and Section 15301 in that these proposed ordinances will have a minor impact
on existing facilities.
Attachments:
Attachment A: Ordinance for Elimination of 1 to 1 Parking Exemption (PDF)
Attachment B: Interim Ordinance to Eliminate Certain Parking Exemptions within the
Downtown Area (PDF)
Attachment C: CMR and Excerpt Minutes dated October 15, 2012 (PDF)
Attachment D: CMR and Excerpt Minutes dated December 15, 2012 (PDF)
Attachment E: Transportation Element Parking Goals & Policies (PDF)
Attachment F: Excerpt Minutes of the September 25, 2013 Planning and Transportation
Commission Meeting (DOCX)
Attachment G: September 25, 2013 Planning and Transportation Commission Staff
Report (PDF)
CITY OF
PALO
ALTO
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER
AGENDA DATE: October 21~' 2013
CITY OF PALO ALTO
MEMORANDUM
DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
10#:4139
#11
SUBJECT: Parking Exemptions Code Review: Review and Recommendation to City Council to
Adopt: '
.' /
1. Ordinance to Repeal Ordinance 5167 and Amend the Palo Alto Municipal Code to, Delete
Sections' 18.52.060(a)(2) and 18.52.060(c) Related to Parking Assessment Districts to,
Eliminate the "Exempt Floor Area" Parking Exemption Which Allows for Floor Area up to a
Floor Area Ratio (FAR) of 1.0 to 1.0 to be Exempt From Parking Require'ments Within the
Downtown Parking Assessment Area and Floor Area up to an .FAR of 0.5 to '1.0 to be
Exempt Within the California Aven~e Area,'Parking Assessment District.
2. Interim Ordinance to Amend Chapters 18.18, Downtown Commercial (CD) District, and
18.52, (Parking and Loading Requirements) to Make the 'Following Changes tp be Effective
for a Period of Two Years:
a. Delete Sections 18.18.070(a)(1), 18.18.090(b)(1)(C) and 18.52.070(a)(1)(D) to Eliminate
the 200 Square Foot Minor Floor Area Bonus and Related Parking Exemption for Buildings
not Eligible for Historic or Seismic Bonus.
b. Delete Sections 18.18.090(b)(1)(B), 18.52.070(a)(1)(B) and 18.52.070(a)(1)(C)(i) to
Eliminate the Parking Exemption for On-site Use of Historic and Seismic Bonus.
c. Amend Section 18.18.080(g) to Remove the On-site Parking Exemption for Historic and
Seismic Transfer of Development Rights up to 5,000 Square Feet of Floor Area to a
Receiver Site in the CD or PC Zoning Districts.
d. Amend Section 18.18.120(a)(2)and (b)(2) Related to Grandfathered Uses and Facilities
to Clarify that a Grandfathered Use May be Remodeled and Improved, But May Not be
Replaced and Maintain its Grandfathered Status.
e. Amend Section 18.52.070(a)( 3)
Related to Remove the Sentence Allowing Square Footage to Qualify for Exe'mption That
Was Developed or Used Previously for Nonresidential Purposes but was Vacant at the
Time of the Engineer's Report.
These actions are exempt from the California Environmental Quality Act (CEQA) under
S,ection 15061 and 15301 of the CEQA Guidelines.
The information provided in the staff report in /lTable 6" for 500 University Avenue was based on the
project's Preliminary Review project information. A revised project was recently submitted. The size of
the project remains the same; however the applicant is now providing two levels of under grade parking
with 65 spaces. Previously only 24 spaces were provided.
Per the Municipal Code, the new project requires 107 spaces. The property owner pay~ into the·
assessment district for 64 spaces and is therefore responsible for providing 43 onsite spaces. As noted
above, the property owner is providing 65 spaces (22 more than is required).·
AARONAKNIN
Interim Director
Planning and Community Environment
CITY OF PALO ALTO CITY COUNCIL
DRAFT ACTION MINUTES
Page 1 of 8
Special Meeting
October 21, 2013
The City Council of the City of Palo Alto met on this date in the Council
Conference Room at 5:34 P.M.
Present: Berman, Burt, Holman, Klein, Kniss, Price arrived at 5:57 P.M.,
Scharff, Schmid, Shepherd
Absent:
STUDY SESSION
1. Potential List of Topics for the Study Session with Senator Jerry Hill.
The City Council Adjourned to the Closed Session at 6:34 P.M.
CLOSED SESSION
2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS, CALIFORNIA
GOVERNMENT CODE SECTION 54956.8
Properties:
Cubberley Community Center, 4000 Middlefield Road, Palo Alto 94306
(including 8 acres owned by the City of Palo Alto and remaining acres
owned by the Palo Alto Unified School District); and Ventura School
site, 3990 Ventura Court, Palo Alto 94306
Agency Negotiators:
James Keene, Pam Antil, Lalo Perez, Joe Saccio, Hamid
Ghaemmaghami, Greg Betts, Rob De Geus, Thomas Fehrenbach,
Aaron Aknin, Molly Stump
Negotiating Parties:
City of Palo Alto and Palo Alto Unified School District
Under Negotiation:
Lease and/or Purchase/Sale*
Price and Terms of Payment
DRAFT ACTION MINUTES
Page 2 of 8
City Council Meeting
Draft Action Minutes: 10/21/13
*Purchase/sale is listed to comply with Brown Act legal requirements,
and include various types of transactions including but not limited to
easements, options, rights of first refusal and land exchanges.
The City Council Adjourned to the Council Chambers at 8:00 p.m. Mayor
Scharff announced there was no reportable action.
SPECIAL ORDERS OF THE DAY
3. Community Partner Presentation: Palo Alto Players at the Lucie Stern
Community Theatre.
MINUTES APPROVAL
MOTION: Vice Mayor Shepherd moved, seconded by Council Member Price
to approve the Minutes of August 19, 2013.
MOTION PASSED: 8-1 Berman abstaining
CONSENT CALENDAR
MOTION: Council Member Kniss moved, seconded by Council Member Price
to approve Agenda Item Numbers 4-10.
4. Approval of a Stewardship Agreement Between the City of Palo Alto
and the Santa Clara County Fire Safe Council (FSC) in the Amount of
$50,000 from the Public Works CIP PO-12003 for the Initial Year of
Services for Treatment Work Indicated in the Foothill Fire Management
Plan (FFMP).
5. Policy and Services Recommendation to Accept the City Auditor's
Office Fiscal Year 2014 Proposed Work Plan and Risk Assessment.
6. Policy and Services Recommendation to Accept the Report on the
Status of Audit Recommendations (June 2013).
7. Policy and Services Recommendation to Accept the Auditor's Office
Quarterly Report as of June 30, 2013.
8. Approval of a Utilities Enterprise Fund Contract with Efacec Advanced
Control Systems, Inc. in the Amount of $107,647 for Software and
Hardware Support Services for the City's Utility SCADA System (EL-
02010) and 10% Contingency of $10,700 for Related, but Unforeseen
Work; for a Total Authorized Amount of $118,347.
DRAFT ACTION MINUTES
Page 3 of 8
City Council Meeting
Draft Action Minutes: 10/21/13
9. Approval of Annual Report of Williamson Act Contracts Within the City
of Palo Alto.
10. Council Direction on Selection of Voting Delegate for the National
League of Cities Annual Business Meeting on Saturday, November 16,
2013.
MOTION PASSED: 9-0
ACTION ITEMS
11. Public Hearing: Parking Exemptions Code Review: Review and
Recommendation to City Council to Adopt: 1. Ordinance to Repeal
Ordinance 5167 and Amend the Palo Alto Municipal Code to Delete
Sections 18.52.060(a)(2) and 18.52.060(c) Related to Parking
Assessment Districts to Eliminate the “Exempt Floor Area” Parking
Exemption Which Allows for Floor Area up to a Floor Area Ratio (FAR)
of 1.0 to 1.0 to be Exempt From Parking Requirements Within the
Downtown Parking Assessment Area and Floor Area up to an FAR of
0.5 to 1.0 to be Exempt Within the California Avenue Area Parking
Assessment District. 2. Interim Ordinance to Amend Chapters 18.18,
Downtown Commercial (CD) District, and 18.52, (Parking and Loading
Requirements) to Make the Following Changes to be Effective for a
Period of Two Years: a. Delete Sections 18.18.070(a)(1),
18.18.090(b)(1)(C) and 18.52.070(a)(1)(D) to Eliminate the 200
Square Foot Minor Floor Area Bonus and Related Parking Exemption
for Buildings not Eligible for Historic or Seismic Bonus. b. Delete
Sections 18.18.090(b)(1)(B), 18.52.070(a)(1)(B) and
18.52.070(a)(1)(C)(i) to Eliminate the Parking Exemption for On-site
Use of Historic and Seismic Bonus. c. Amend Section 18.18.080(g) to
Remove the On-site Parking Exemption for Historic and Seismic
Transfer of Development Rights up to 5,000 Square Feet of Floor Area
to a Receiver Site in the CD or PC Zoning Districts. d. Amend Section
18.18.120(a)(2) and (b)(2) Related to Grandfathered Uses and
Facilities to Clarify that a Grandfathered Use May be Remodeled and
Improved, But May Not be Replaced and Maintain its Grandfathered
Status. e. Amend Section 18.52.070(a)( 3) Related to Remove the
Sentence Allowing Square Footage to Qualify for Exemption That Was
Developed or Used Previously for Nonresidential Purposes but was
Vacant at the time of These actions are exempt from the California
Environmental Quality Act (CEQA) under Section 15061 and 15301 of
the CEQA Guidelines.
DRAFT ACTION MINUTES
Page 4 of 8
City Council Meeting
Draft Action Minutes: 10/21/13
MOTION: Mayor Scharff moved, seconded by Council Member Burt to
adopt:
1. An Ordinance to amend the Palo Alto Municipal Code (PAMC) to
permanently delete Sections 18.52.060(a)(2) and 18.52.060(c) related to
Parking Assessment Districts to eliminate the “Exempt Floor Area” parking
exemption which allows floor area up to a floor area ratio (FAR) of 1.0 to
1.0 to be exempt from parking requirements within the Downtown
Parking Assessment Area, and floor area up to an FAR of 0.5 to 1.0 to be
exempt within the California Avenue area parking assessment district
(Attachment A); and
2. An Interim Ordinance (Attachment B) to amend PAMC Chapters 18.18,
Downtown Commercial (CD) District, and 18.52 (Parking and Loading
Requirements), to make the following changes, to be effective for a
period of two years:
a. Delete Sections 18.18.070(a)(1), 18.18.090(b)(1)(C) and
18.52.070(a)(1)(D) to eliminate the parking exemption related to the
200 square foot Minor Floor Area Bonus for buildings not eligible for
Historic or Seismic Bonus (keep sq footage but eliminate parking
exemption)
b. Delete Sections 18.18.090(b)(1)(B), 18.52.070(a)(1)(B) and
18.52.070(a)(1)(C)(i) to eliminate the parking exemption for on-site
use of Historic and Seismic Bonus.
c. Amend Section 18.18.080(g) to remove the on-site parking exemption
for floor area bonuses derived through historic and seismic upgrades
via the transfer of development rights (TDR) program (where up to
5,000 square feet (SF) of floor area for each type of upgrade is
allowed for receiver sites in the CD or downtown PC zoning districts).
d. Amend Section 18.52.070(a)(3) to disallow the parking exemption for
floor area developed or used previously for non-residential purposes
and vacant at the time of the engineer’s report during the parking
district assessment. (keep sq footage but eliminate parking
exemption)
MOTION SEPARATED FOR THE PURPOSE OF VOTING: Mayor Scharff
bifurcated the Motion to allow separate votes for Item Numbers One and
Two.
BIFURCATED MOTION: Mayor Scharff moved, seconded by Council
Member Burt to adopt:
1. An Ordinance to amend the Palo Alto Municipal Code (PAMC) to
permanently delete Sections 18.52.060(a)(2) and 18.52.060(c) related
to Parking Assessment Districts to eliminate the “Exempt Floor Area”
DRAFT ACTION MINUTES
Page 5 of 8
City Council Meeting
Draft Action Minutes: 10/21/13
parking exemption which allows floor area up to a floor area ratio
(FAR) of 1.0 to 1.0 to be exempt from parking requirements within the
Downtown Parking Assessment Area, and floor area up to an FAR of
0.5 to 1.0 to be exempt within the California Avenue area parking
assessment district (Attachment A); and
MOTION PASSED: 9-0
BIFURCATED MOTION: Mayor Scharff moved, seconded by Council
Member Burt to adopt:
2. An Interim Ordinance (Attachment B) to amend PAMC Chapters 18.18,
Downtown Commercial (CD) District, and 18.52 (Parking and Loading
Requirements), to make the following changes, to be effective for a
period of two years:
a. Delete Sections 18.18.070(a)(1), 18.18.090(b)(1)(C) and
18.52.070(a)(1)(D) to eliminate the parking exemption related to
the 200 square foot Minor Floor Area Bonus for buildings not
eligible for Historic or Seismic Bonus (keep sq footage but
eliminate parking exemption)
b. Delete Sections 18.18.090(b)(1)(B), 18.52.070(a)(1)(B) and
18.52.070(a)(1)(C)(i) to eliminate the parking exemption for on-
site use of Historic and Seismic Bonus.
c. Amend Section 18.18.080(g) to remove the on-site parking
exemption for floor area bonuses derived through historic and
seismic upgrades via the transfer of development rights (TDR)
program (where up to 5,000 square feet (SF) of floor area for each
type of upgrade is allowed for receiver sites in the CD or downtown
PC zoning districts).
d. Amend Section 18.52.070(a)(3) to disallow the parking exemption
for floor area developed or used previously for non-residential
purposes and vacant at the time of the engineer’s report during the
parking district assessment. (keep sq footage but eliminate parking
exemption)
AMENDMENT: Council Member Klein moved, seconded by Vice Mayor
Shepherd to exempt the pipeline projects at 240 Hamilton Avenue, 261
Hamilton Avenue, 429 University Avenue, 640 Waverley Street, 500
University Avenue, 301 High Street as listed in Table Six of the Staff Report.
AMENDMENT TO MOTION FAILED 4-5 Klein, Shepherd, Kniss, Price yes
DRAFT ACTION MINUTES
Page 6 of 8
City Council Meeting
Draft Action Minutes: 10/21/13
INCORPORATED INTO THE MOTION WITH CONSENT OF THE MAKER
AND THE SECONDER to add to 2b and 2C “to have Staff return with
replacement incentives for historic and seismic bonus” to read as follows:
b. Delete Sections 18.18.090(b)(1)(B), 18.52.070(a)(1)(B) and
18.52.070(a)(1)(C)(i) to eliminate the parking exemption for on-
site use of Historic and Seismic Bonus and to have Staff return
with replacement incentives for historic and seismic bonus.
c. Amend Section 18.18.080(g) to remove the on-site parking
exemption for floor area bonuses derived through historic and
seismic upgrades via the transfer of development rights (TDR)
program (where up to 5,000 square feet (SF) of floor area for each
type of upgrade is allowed for receiver sites in the CD or downtown
PC zoning districts) and to have Staff return with replacement
incentives for historic and seismic bonus.
MOTION AS AMENDED PASSED: 8-1 Kniss no
12. Public Hearing: Adoption of Eight Ordinances: (1) Repealing Chapter
16.04 of the Palo Alto Municipal Code and Amending Title 16 to Adopt
a New Chapter 16.04, California Building Code, California Historical
Building Code, and California Existing Building Code, 2013 Editions,
and Local Amendments and Related Findings; (2) Repealing Chapter
16.05 of the Palo Alto Municipal Code and Amending Title 16 to Adopt
a New Chapter 16.05, California Mechanical Code, 2013 Edition, and
Local Amendments and Related Findings; (3) Repealing Chapter 16.06
of the Palo Alto Municipal Code and Amending Title 16 to Adopt a New
Chapter 16.06, California Residential Code, 2013 Edition, and Local
Amendments and Related Findings; (4) Repealing Chapter 16.08 of the
Palo Alto Municipal Code and Amending Title 16 to Adopt a New
Chapter 16.08, California Plumbing Code, 2013 Edition, and Local
Amendments and Related Findings; (5) Repealing Chapter 16.14 of the
Palo Alto Municipal Code and Amending Title 16 to Adopt a New
Chapter 16.14, California Green Building Standard Code, 2013 Edition,
and Local Amendments and Related Findings; (6) Repealing Chapter
16.16 of the Palo Alto Municipal Code and Amending Title 16 to Adopt
a New Chapter 16.16, California Electrical Code, 2013 Edition, and
Local Amendments and Related Findings; (7) Repealing Chapter 16.17
of the Palo Alto Municipal Code and Amending Title 16 to Adopt a New
Chapter 16.17, California Energy Code, 2013 Edition, and Local
Amendments and Related Findings; and (8) Repealing Chapter 15.04
of the Palo Alto Municipal Code and Amending Title 15 to Adopt a new
Chapter 15.04, California Fire Code, 2013 Edition, and Local
Amendments and Related Findings.
DRAFT ACTION MINUTES
Page 7 of 8
City Council Meeting
Draft Action Minutes: 10/21/13
MOTION: Vice Mayor Shepherd moved, seconded by Council Member Kniss
to adopt the following:
1. Ordinance repealing Chapter 16.04 of the Palo Alto Municipal Code and
amending Title 16 to adopt a new Chapter 16.04, California Building
Code, California Historical Building Code, and California Existing Building
Code, 2013 Editions, and Local Amendments and Related Findings.
2. Ordinance repealing Chapter 16.05 of the Palo Alto Municipal Code and
amending Title 16 to adopt a new Chapter 16.05, California Mechanical
Code, 2013 Edition, and Local Amendments and Related Findings.
3. Ordinance repealing Chapter 16.06 of the Palo Alto Municipal Code and
amending Title 16 to adopt a new Chapter 16.06, California Residential
Code, 2013 Edition, and Local Amendments and Related Findings.
4. Ordinance repealing Chapter 16.08 of the Palo Alto Municipal Code and
amending Title 16 to adopt a new Chapter 16.08, California Plumbing
Code, 2013 Edition, and Local Amendments and Related Findings.
5. Ordinance repealing Chapter 16.14 of the Palo Alto Municipal Code and
amending Title 16 to adopt a new Chapter 16.14, California Green
Building Standard Code, 2013 Edition, and Local Amendments and
Related Findings.
6. Ordinance repealing Chapter 16.16 of the Palo Alto Municipal Code and
amending Title 16 to adopt a new Chapter 16.16, California Electrical
Code, 2013 Edition.
7. Ordinance repealing Chapter 16.17 of the Palo Alto Municipal Code and
amending Title 16 to adopt a new Chapter 16.17, California Energy Code,
2013 Edition.
8. Ordinance repealing Chapter 15.04 of the Palo Alto Municipal Code and
amending Title 15 to Adopt a new Chapter 15.04, California Fire Code,
2013 Edition.
MOTION PASSED: 8-0 Klein absent
13. Approval of Contract for the Downtown Development CAP to Dyett &
Bhatia Urban & Regional Planners in the Amount Not to Exceed
$200,000 (Continued from October 7, 2013).
MOTION: Vice Mayor Shepherd moved, seconded by Council Member Price
to approve and authorize the City Manager or designee to execute contract
with Dyett & Bhatia Urban & Regional Planners (Attachment A) in the
amount of $200,000 for the Downtown Development Cap Study - Phase 1
project.
DRAFT ACTION MINUTES
Page 8 of 8
City Council Meeting
Draft Action Minutes: 10/21/13
MOTION TO CALL THE QUESTION: Council Member Burt moved,
seconded by Vice Mayor Shepherd.
MOTION TO CALL THE QUESTION PASSED: 6-2 Schmid, Holman no,
Klein absent
MOTION PASSED: 7-1 Schmid no, Klein absent
ADJOURNMENT: The meeting was adjourned at 11:39 P.M.