HomeMy WebLinkAboutStaff Report 11877
City of Palo Alto (ID # 11877)
City Council Staff Report
Report Type: Action Items Meeting Date: 1/19/2021
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Summary Title: Community & Economic Recovery
Title: Provide Feedback and Direction on the Community & Economic
Recovery Workplan and Approve Budget Amendments in Various Funds
From: City Manager
Lead Department: Administrative Services
RECOMMENDATION
Direction on the City of Palo Alto’s Community and Economic Recovery efforts including
feedback and direction to either continue to prioritize or to begin work on recommended
prioritized projects, community engagement strategies, and governance framework for future
work.
Should the City Council agree with the recommended prioritization, initial appropriation actions
are recommended in order to facilitate continued work through amending the Fiscal Year 2021
Appropriation ordinance for:
a) The Stanford University Medical Center Fund by:
a. Increasing the transfer to the General Capital Fund from Expansion Cost
Mitigation by $150,000; and
b. Increasing the transfer to the General Capital Fund from Community Health and
Safety by $500,000; and
c. Decreasing the Ending Fund Balance by $650,000.
b) The General Capital Fund by:
a. Increasing the transfer from the Stanford University Medical Center by $650,000;
and
b. Establishing the University Avenue Streetscape Update project in the amount of
$150,000 to support work on University Avenue; and
c. Increasing the Building Systems Improvements project (PF-01003) by $500,000
to support work on City Facilities related to COVID-19 mitigation.
c) The Fiber Optics Fund by:
a. Increasing the expense appropriation by $200,000; and
b. Decreasing the rate stabilization reserve by $200,000.
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Per the City of Palo Alto's municipal code, approval of the above budget amendments requires
a two-thirds vote by the City Council.
EXECUTIVE SUMMARY
The City’s work to help the community and local economy recover remains a para mount
concern in 2021. Although COVID-19 vaccines are now being distributed at the national, state,
and local levels, it remains unclear how long it will take to fully administer them. Accordingly,
the timeline and phases through which the City will reach the “next normal” remains unclear,
and the rapidly evolving circumstances (including revised guidance from Santa Clara County
through refreshed local health orders) continue to constrain the City of Palo Alto’s resources
and ability to provide services to the community.
Throughout Fall 2020, the City Council examined strategies for community and economic
recovery. The City Council discussed it over multiple weeks, including looking at existing efforts
such as “Uplift Local,” convening a panel of experts to discuss national and local trends, local
revenue levels, what the future of work may look like, and providing initial reactions to staff’s
organization of the ongoing workplan for Community and Economic Recovery.
This report further details the potential workplan across four focus areas: “Manage through
the Pandemic,” “Community Wellness and Welfare,” “Focused Business Support,” and “City
Priority Initiatives,” through individual work items and seeks feedback from the City Council
regarding the prioritization and resource provisioning necessary to accomplish these items.
Included in this report is a recommendation to appropriate funding for three specific projects:
Fiber to the Home, work on University Avenue and retrofits to City Facilities to ensure they can
mitigate the spread of COVID-19 to the greatest extent possible. As this work continues, staff
anticipates providing updates on the various work items to the full City Council and meeting
with ad hoc groups and standing committees, as appropriate, to ensure progress can continue
to be made.
The chart below provides a summary of the four focus areas and specific priorities within each
area, discussed with the City Council in December 2020. Staff has developed these priorities
based on the City Council discussions and feedback with the assumption that this is the highest
and most critical priority for 2021. In order to accomplish the work, kicking off these key work
items and continuing to focus on these areas requires these remain the priority. Should the
Council wish to identify additional priorities in 2021, this plan will need to be adjusted based on
resource needs and availability.
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a) Maintaining services while managing daily pandemic needs such as testing, contact
tracing, exposures, and other tasks necessitated by COVID-19 is currently the highest
need of the City.
b) Continue high-volume public communications and enhanced community engagement
on managing through the COVID-19 pandemic to the City and the Community
c) Ensure the continued safety of employees and visitors in various City facilities and
workspaces
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d) Support Community Welfare and Wellbeing through development of a series of
community events, presentations, and engagement opportunities
Support and promote childcare programs
Provide school-aged youth programs
Promote adult and senior wellness programs
Build community emergency resilience
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e) Continue, and further promote, Uplift Local and other retail supportive strategies
f) Provide technical support for workplace environmental upgrades to mitigate risks for
local businesses
g) Advance sustainability and electrification goals (i.e. expand electric vehicle (EV)
infrastructure)
h) Refine the scope and breadth of the City’s economic support activities
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i) Further accelerate Fiber to the Home (FTTH) and pursue expanded community
engagement
j) Support experiences at Downtown and California Ave and redesign these corridors for
cars, pedestrians, and bicycle travelers and visitors
k) Develop remote work staffing models for delivery of services
l) Continue progress on the Housing Workplan, with a focus on renter protection and
affordable housing construction
In addition to the priorities identified in the recovery plan, other key staff work continues to be
underway, which requires continued, significant staff resources including, but not limited to:
− financial monitoring, reporting, and budget development through the Long-Range
Financial Report, Proposed Operating and Capital Budgets, and financial and investment
reporting;
− serving the community through the Development Center and permitting requests;
− continuing to provide public safety and emergency response 24/7;
− managing community facing programing in parks community services and library
services;
− managing labor relations and contracts;
− design and construction of capital projects such as the 101 Highway Bike and Pedestrian
Bridge;
− upgrading the City’s website and other technology infrastructure; and
− maintaining and providing for safe bike and pedestrian corridors and parking programs.
Based on the January 19, 2021, Council discussion, staff will incorporate Council input on this
framework to prioritize and develop additional scoping of the individual work items shown
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above, including goals, objectives, and timelines for each. In addition, the purpose of the
meeting is to discuss the resources necessary to accomplish each item that the City Council
wishes to further pursue.
BACKGROUND
Several recent Council conversations on the City’s budget and fiscal forecast, economic status,
and COVID-19 pandemic have informed the staff work presented as part of this Council report.
The City’s FY 2021 Adopted Budget reflected a reduction in General Fund revenues of $34.6
million which was anticipated due to financial impacts of the COVID-19 pandemic and economic
challenges. The Adopted Budget projected a nearly 40-50 percent reduction in major revenue
categories such as Transient Occupancy Taxes and Sales Taxes. A balanced budget was adopted
with expenses of $197 million, down from $230.8 million in the prior adopted budget,
representing a nearly 15 percent reduction in costs and services. This included over a 50
percent reduction in funding for capital investment while freezing 76.5 full-time equivalent
(FTE) staffing resources across the City (65 FTE in the General Fund), dropping authorized
staffing levels from 1,035 to 958 FTE. In addition, 26.2 FTE in part-time/hourly positions were
also frozen, approximately 25 percent of the authorized workforce. The City has reduced
service capacity in all areas, ranging from police, fire, and code enforcement to community
services and libraries, public works, transportation, and utilities, as well as the administrative
services needed to support these functions.
On October 19, 2020, the City Council reviewed and discussed the preliminary Q1 FY 2021
financial status report (City Manager’s Report #11596). This update provided a snapshot in time
and projected that revenues citywide were approximately in line with adopted budgeted levels.
With the information available at the time and persistent uncertainty as a result of the
pandemic, no action was taken. Staff has continued monitoring developments since then. At
the time, staff shared a series of upcoming Council actions on the budget, long range financial
forecast, and reviewed the preliminary development of a community and economic recovery
plan which was expected to be discussed in further detail over upcoming months.
Subsequently, on November 9, 2020 (City Manager’s Report #11702), the City Council reviewed
community and economic recovery strategies, such as “Uplift Local,” and other business
support activities and testing. Council also discussed options designed to help bolster the local
economy, and, in response to the significant impact this pandemic has placed on all
communities, including Palo Alto, began discussion of a more comprehensive Community and
Economic Recovery framework.
Staff presented and Council discussed key elements of Community and Economic Recovery
including:
a) Assemble and facilitate discussion of major economic forces and trends
b) Develop analytical tools to evaluate fiscal scenarios
c) Identify potential City actions to support and accelerate (where possible) local
community and economic recovery
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PRELIMINARY
The November 30, 2020 and December 7, 2020 study sessions provided a continuation of the
City Council’s discussions on community and economic recovery, with a look at major economic
forces and trends. An expert panel discussed current economic trends, the City’s Sales Tax
revenues and impacts, as well as the work from home culture and future. The video from these
sessions can be found here: November 30, 2020 and December 7, 2020. This information
packed discussion, questions and answer session, and detailed analysis on the City’s major tax
revenues and current trends. The presentations also provided valuable insights about emerging
trends during this uncertain time to assist in informing and shaping future work as part of this
overall strategy.
The purpose of the January 19, 2021 Council discussion is to review the feedback provided by
the City Council at these study sessions and provide direction to staff on the priority projects,
governance, and engagement strategies to focus the organization’s limited resources during the
coming year and beyond. The preliminary framework organized an initial set of priority projects
into four focus areas:
These priority areas reflect the work done by other Bay Area institutions, while recognizing the
unique characteristics and need in Palo Alto as well as the City’s ability to have positive impacts
in the midst of the global forces at hand. The City remains nimble in the current environment
where change and uncertainty continue to dominate the evolving circumstances.
DISCUSSION
In order to continue the work on the community and economic recovery plan, staff is bringing
forward the following items in order to gain Council input and further direction:
• A distillation of the City Council’s discussion and feedback from the November 30 and
December 7 study sessions
• Refined framework of focus areas to identify a comprehensive list of projects, including
recommended prioritization of those projects
• Options for Community / stakeholder engagement and governance for the community
and economic recovery plan
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As the Council reviews these next steps and priorities, staff is seeking discussion and either
confirmation of recommended priorities or further direction on the projects identified within
the focus areas. Current recommended projects have been prioritized based on both project
readiness and short- and long-term impacts. As the Council reviews these projects, resource
needs must remain at the forefront and staff recommends approaching each project with a
framework to ensure it is measurable and the outcome is defined and achievable. Staffing
resources citywide have contracted over 7 percent, and more than 11 percent in the General
Fund. This corresponds to an equivalent level of service reductions already implemented
throughout the organization and the community. As outlined in the City’s FY 2022 Preliminary
General Fund Forecast, the City will continue to face extreme fiscal pressures in the near term,
further constraining resources.
These pressures emphasize the importance of clearly defining the goals and objectives of each
of the work items detailed in this report. One common framework to assist in ensuring we are
prioritizing with deliverables and action in mind is the SMART criteria (Specific, Measurable,
Actionable, Relevant, and Time-bound). Based on contemporary evolution of such efforts, staff
recommends that two more criteria be added to that list: Inclusive and Equitable, which would
yield SMARTIE criteria as a template to apply to further discussions. As the City continues its
ongoing work on Race and Equity, it is important to ensure that the lenses of inclusivity and
equity be applied throughout city processes. This framework is expected to be included as part
of the discussion at the City Council’s January 30, 2020 annual retreat and priority setting.
November and December 2020 Council Discussion and Feedback – Summary
As discussed above, the City Council heard from a panel of experts on Monday, November 30,
2020, consisting of Dr. Jerry Nicklesburg, Professor Nicholas Bloom, and the City’s Sales Tax
consultant, AvenuInsights. Through the panel discussion, the City Council heard not only about
the impacts of efforts to contain COVID-19’s spread on the larger economy, but also about
specific impacts to the City of Palo Alto’s sales tax base. Although vaccine distribution is now
underway, the uncertainty associated with further efforts to contain COVID-19 parallel to that
distribution remains. This is evidenced by the most recent Santa Clara County health guidance
provided between the November 30th and December 7th City Council meetings, highlighting the
rapidly changing nature of efforts to contain the spread of COVID-19.
The City Council offered feedback on the preliminary framework and projects identified in the
four elements of the City’s Community and Economic Recovery efforts as well as the
governance and community engagement strategies. Overall, the feedback from the City Council
offered:
− Managing through the pandemic is the top and core priority the four focus areas
identified,
− Additional items to be included in the different elements,
− Consensus that this topic should remain with the City Council, and
− Reinforced the importance of engagement with stakeholders throughout the process.
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Individual items and actions are discussed below in the workplan prioritization section below.
The City’s ongoing work on this topic will continue to return to the City Council for further
feedback and direction, and will include engagement with ad hoc bodies as well as standing
committees, e.g. Parks and Recreation Commission (PRC), Architectural Review Board (ARB),
the Planning and Transportation Commission (PTC), the Finance Committee (FC), and Policy and
Services (P&S) and Utility Advisory Commission (UAC).
Recommended Community and Economic Recovery Plan Focus Areas and Priority Tasks
Through the four focus areas, staff has recommended several work items to focus resources on
pursuing concurrently. For each focus area, the work items are organized to identify
recommended priorities and briefly described in scope, anticipated resources necessary to
bring them to completion, timeline, and the relative priority. These are followed by additi onal
ideas and work items discussed or included in the preliminary review with the City Council,
however, at this time they will be considered for further action at a later date or emphasis
provided in the normal course of current business. Given the unprecedented resource
constraints the City is facing, it will be necessary to focus resources to ensure measurable
identified outcomes are attained and some of the proposed items that surfaced during the
conversation with the City Council may not be able to be pursued immediately.
Manage through the Pandemic
As the focus area that the City Council voiced the strongest and most significant support and
key area for 2021 priorities, staff has recommended most of all work items in this element
continue to be prioritized. The workplan for this focus area includes the following items:
a) Maintaining services while managing daily pandemic needs such as testing, contact tracing,
exposures, and other tasks necessitated by COVID-19 is currently the highest need of the City
This work requires close communication and coordination among the City Manager’s Office,
the Office of Emergency Services, Human Resources, and the entirety of the organization.
The volume of work required to maintain services and ensure employee and community
safety by remaining in alignment with rapidly shifting health orders cannot be overstated.
Even though vaccines are now being distributed throughout the country, state, and county,
it remains unclear when they will be widely available and administered. As such, the highest
priority of the City, as an organization and community, remains the provision and
recalibration of services in the face of COVID-19. The City will continue coordination, to the
extent practicable and possible, with other levels of government and elected officials.
b) Continue high-volume public communications and enhanced community engagement on
managing through the COVID-19 pandemic to the City and the Community
This work has required a fully staffed communications team in the City Manager’s Office
and the repurposing of staff resources (on average equivalent to approximately one
position) from the Library and other departments in order to support the communication
and community engagement needed to inform, engage and support the community
through these difficult times. This volume of communication has been especially important
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given the rapidly changing circumstances that the community, businesses and community
partners have encountered. Guidance from the County evolves constantly, and quickly, and
the frequency of the City’s communications has enabled it to convey that revised guidance
to the community in a consistent, clear, and timely manner. Some focus areas include
generating electronic newsletters, additional blogs on key issues and events, new webpages
and websites, flyers, signage and printed materials, newspaper ads, news alerts and news
releases, FAQs, and other timely communication to the City Council, community,
businesses, and community partners. Other efforts include staffing the Community Support
Call Center with redeployed resources.
c) Ensure the continued safety of employees and visitors in various City facilities and
workspaces
The City will continue to examine its options for techniques, interventions, and retrofitting
of equipment to mitigate risk to employees and visitors. It is worth noting that, at the
moment, City facilities such as Council Chambers, libraries, and other public-facing
operations remain closed in compliance with the latest County guidance. The City is actively
managing HVAC systems in facilities serving essential functions to comply with CDC and
other guidance and is examining retrofitting facilities to provide ongoing improvements in
indoor air quality. Staff will pursue any investments necessary during this time to ensure the
City is adapting to the evolving County guidance and, once reopening is authorized, facilities
are aligned with community needs and safety considerations. In order to provide initial
resources for this project and reflect its high prioritization, this CMR recommends
appropriating funding of ($500,000) in the Capital Fund from the Stanford University
Medical Center (SUMC) Community Health and Wellness Fund to establish a project for City
facility environmental upgrades.
Community Welfare and Wellbeing
d) Support Community Welfare and Wellbeing through development of a series of community
events, presentations, and engagement opportunities
This work item would direct staff to develop a series to discuss many of the adapted
services available throughout the community providing forums for community engagement
and presentations on topics related to health, wellness, and resiliency. This could include
presentations by staff, guest speakers, or a panel of experts. Building on past practices of
highlighting non-profits throughout the community at a Council meeting and the Library
department speaker series, it is expected that this series would provide a reliable frequency
of events that enriches the wellness and resilience of the community and highlights the
services and its providers that they may avail themselves of. Specific work items staff will
prioritize and include in this series include:
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o Support and promote childcare programs
Staff and the Palo Alto Advisory Committee on Early Care and Education Committee,
which is an advisory committee to the City, on issues related to childcare and early
learning, have been meeting bi-weekly with local childcare provider since the
pandemic began. These meetings have given local providers a much-needed
opportunity to get crucial information on County and State guidelines, share their
operational struggles and successes, seek advice from other providers, and form a
sense of community during these challenging times. Details discussed will then be
shared with the community through the City’s communications channels. This work
will continue through the short-term as the situation continues to evolve.
o Provide school-aged youth programs
Both the Community Services and Library Departments continue to provide
programming and leadership growth opportunities for school-aged youth and teens.
While the format of these program offerings has shifted to a virtual model, the
range of programs continues to represent academic, creative, social and athletic
interests of Palo Alto youth. Staff continues to develop innovative programs for
youth, such as a mindfulness program and opportunities for safe outdoor activities.
o Promote adult and senior wellness programs
Similar to youth programs, the City continues to provide programming for adults.
The Library will continue to develop and provide community read events (Palo Alto
Reads, Book to Action, and Silicon Valley Reads) and ESL programming for English
language learners. These types of events allow the community to virtually meet,
connect together, and discuss important topics as well as learn and interact with
each other. Staff will continue to explore ways to promote the City’s
programming/services to adults, looking closely at opportunities of forming
collaborations/outreach with other local groups.
o Build community emergency resilience
The Office of Emergency Services (OES) continues to coordinate with other agencies
and City departments during this ongoing public health emergency. At the same
time, the City is preparing for a wide range of other possible threats and hazards;
more information on those efforts can be found at www.cityofpaloalto.org/thira.
Additionally, the City’s Emergency Services Volunteer (ESV) program continues to
grow, providing training to residents, businesses, and other community members.
See www.cityofpaloalto.org/emergencyvolunteers for more information on these
efforts. Finally, the City is evaluating new technologies to address our evolving
budget and personnel constraints, to increase efficiency of identification of,
response to, and recovery from various critical incident scenarios. Part of this focus
area includes developing a community engagement opportunity for the community
to learn and gain tools to be ready for future emergencies and build resiliency,
specifically focused on the first few days of an emergency.
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Focused Business Support
e) Continue, and further promote, Uplift Local and other retail supportive strategies
The City will continue to pursue opportunities to promote local businesses through the
“Uplift Local” initiative and facilitate communication among key stakeholders to ensure that
concerns can be addressed. This may include things like changes to physical infrastructure
(i.e. repurposing University and California Avenues) or encouraging support of local
businesses. Actions already attributed to this program include fast-tracked permitting
processes, opening of car-free streets in both University and California Avenue business
cores, and roundtable meetings with the businesses in these areas to have a continuous
dialogue on needs, challenges, and adaptations in alignment with changing health order
regulations. These actions include permitted outdoor business activities such as restaurants,
retail shops, salons, and fitness and a parklet program. Frequent communication, education
and support regarding health order requirements and mandates of local businesses. Staff
established a dedicated website to market and promote local businesses to the community
and visitors, developed holiday related campaigns to connect the community to business
offerings, and has hosted ongoing monthly check-ins with the community to raise concerns,
share input and gain updates on this program and other related City initiatives.
f) Provide technical support for workplace environmental upgrades to mitigate risks for local
businesses
The Utilities Department is currently exploring options for partnering with a contractor that
can provide an evaluative service to audit workplace safety of local businesses. This would
include examining airflow, air filtration, and other mitigation options for businesses to
ensure that they are able to operate while minimizing risk to employees, customers, and
visitors.
g) Advance sustainability and electrification goals (i.e. expand electric vehicle (EV)
infrastructure)
Through the Sustainability Climate Action Plan (S/CAP) conversations with City Council
(currently scheduled for a study session in February/March and action later in the year) the
City will further refine its goals and strategies to encourage widespread adoption of electric
vehicles, including the necessary charger infrastructure to meet the City’s goals. Work to
install 27 additional electric vehicle chargers at the Bryant, Cowper, and City Hall Garages
has just been completed, and the new California Avenue Garage includes 33 chargers –
these installations are part of a goal to install more than 600 ports and chargers throughout
the City within three years. The City is actively working to identify and pursue potential
grant funding from the state of California for additional chargers – most recently, $290,000
in CALeVIP (California Electric Vehicle Infrastructure Project) grant funding was approved to
support installation of Level 3 DC fast chargers in three City garage locations that will
support charging by residents living in multifamily residential units.
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h) Further refine the scope of the City’s economic support activities
Throughout the conversations in the fall of 2020, the City Council expressed interest in
revisiting the economic support function of the City of Palo Alto. As the City Council
provides greater direction on what this function could entail staff will be able to respond
with options for addressing those concerns. A potential first step in this process could be
conducting an economic scan of the City to assess the current economic landscape of the
City and options to expedite the economic recovery while also addressing community
needs. Accomplishing that task will require additional funding for consulting services.
City Priority Initiatives
i) Further accelerate Fiber to the Home (FTTH) and pursue expanded community engagement
The COVID-19 Pandemic has emphasized the need for a comprehensive Fiber to the Home
(FTTH) initiative. Already, staff has accelerated the FTTH business case and fiber expansion
plan through a contract amendment with Magellan Advisors (City Manager's Report
#11580). The amendment includes development of a business case and high‐level design for
FTTH, a local broadband market assessment, exploration of public private partnership
business models, and community surveys. Preliminary findings and recommendations are
scheduled to be completed by Q2 2021.
Should Council confirm authorizing this project and the appropriation of $200,000 in
additional funding, staff will be developing a new customer engagement platform for
community outreach and enhanced communications for FTTH initiative. In addition to
providing project updates, the platform will enable community stakeholders and members
to provide input on key topics under consideration and enable the City to gauge public
sentiment for decision making. Communications resources will be needed to further this
work; requiring use of authorized budgeted resources including personnel and contracts. In
addition, public-private partnership models and partners and/or service providers that the
City could engage with to build-out a citywide FTTH. The City is also considering offering a
cost-share bundle package of services to residential neighborhoods which includes FTTH,
electric undergrounding, and electrification. Project management resources are being
explored and additional resources may be needed to ensure successful execution of this
major City effort and would be brought back during one of the City’s budget actions.
j) Support experiences at Downtown and California Ave and redesign these corridors for cars,
pedestrians, and bicycle travelers and visitors
The City continues to look at options for supporting the two retail cores on University and
California avenue through strategies such as the installation of bollards and other means for
car-free streets. Initial work involves examining how the City can redefine and narrow
vehicular lanes and provide flexible opening and closing of streets on a trial basis in the
short term. Additionally, with Council’s direction to prioritize this, staff would begin a full
redesign of the University Avenue streetscape to increase vibrancy by expanding pedestrian
and outdoor spaces available for use by visitors and businesses while allowing for flexible
opening and closing of reduced vehicular lanes. In order to continue work on this project
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and reflect its high prioritization, this CMR recommends appropriating funding of $150,000
in the Capital Fund from the Stanford University Medical Center (SUMC) Expansion Cost
Mitigation Fund to establish/augment a project and begin design of options for parklets
and other reconfigurable spaces in the retail cores to facilitate car-free streets.
k) Develop remote work staffing models for delivery of services
The City continues to work on its re-occupancy plans and will maintain alignment of those
plan with evolving direction from the County. At the moment, this includes planning
through three phases: the current Shelter-In-Place (SIP), the medium-term (including
phased reopening), and the longer-term “next normal.” Although the natural inclination
might be to return to the pre-pandemic status quo, staff is taking this opportunity to
thoughtfully consider what alternatives could look like. This work includes prioritizing the
reopening of activities and facilities to align with community expectations and safety needs.
Departments will work on individual re-occupancy plans coordinated through an oversight
committee consisting of representatives from the City Manager’s Office, Human Resources,
Administrative Services, and Public Works. Through this work, the City will identify the
sequencing of reopening and re-occupancy and return to the City Council to provide
updates as those plans solidify.
l) Continue progress on the Housing Workplan, with a focus on renter protection and
affordable housing construction
Progress continues on a number of housing initiatives and staff plans to prioritize this new
work that is about to begin. The Planning and Transportation Commission is scheduled to
offer comments on three draft alternative plan scenarios for the North Venture Coordinated
Area Plan (NVCAP) that will be presented to the City Council in the first quarter of 2021.
Based on Council direction, environmental and more detailed land use analysis will be
prepared. Additionally, work has begun to assemble of team of community stakeholders
and consultants to assist staff with the preparation of a new 2023 – 2030 Housing Element
for the City’s Comprehensive Plan. This housing cycle will require the City to plan for
significantly more housing than in previous housing cycles to meet statewide housing
production objectives.
Following up on Council direction, staff will be meeting with local housing advocates and
scheduling meetings with the Planning and Transportation Commission to explore the
possibility of additional amendments that would facilitate more accessory dwelling unit
production in Palo Alto. Work is also expected to begin during the first quarter of 2021 to
re-evaluate the housing development impact fee imposed on commercial development.
With the assistance of a consultant, the Architectural Review Board and Planning and
Transportation Commission, staff work continues to update subjective development
standards into clear objective standards. This effort will enable the City to continue to
advance high quality urban design principles on development applications that may be
subject to streamlined application review processes.
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Other work items for consideration for inclusion in the Community and Economic Recovery
Plan
The staff and Council identified other areas of interest for consideration as part of this focused
Community and Economic Recovery workplan. Many of these items have been transmitted to
staff to work to address through the normal course of business, however, overall, it is expected
that these areas will be addressed later. As discussed above, given limited resources, a
prioritization of efforts is necessary to ensure we can accomplish the goals outlined. Other
areas of interest include:
− Completing the Caltrain Grade Separation community planning process;
− studying the generation of sales and use taxes and refining estimates for new “base”
level of tax revenues which staff expects to continue to review as part of its financial
work;
− pursuing feedback on City Services through Net Promoter Score (NPS) or a similar
mechanism;
− expanding the City’s partnership with the Chamber of Commerce;
− examining options for Palo Alto scrip or a similar merchant gift card;
− exploring the creation of an ombudsperson role within the City organization to help
businesses (specifically retail) navigate regulations;
− expansion of bicycling and pedestrian friendly streets citywide;
− support for the arts which staff expects to highlight as part of work item d, the series of
events for community wellness and wellbeing;
− providing resources for community events through grants;
− modifying community programming through car-based activities (i.e. drive-in) which
staff expects to work on as part of work item d, the series of events for community
wellness and wellbeing;
− increasing mental health support for the community which staff expects to highlight as
part of work item d, the series of events for community wellness and wellbeing; and
− repurposing of existing spaces, such as parking garages, for fitness and dispersing
community and commercial activities which staff expects to continue through its work
on “Uplift Local” and other retail and business support adaptions these concepts of the
repurposing of spaces and adjusting with the changing health orders will continue.
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Governance
Given the breadth and scope of this work and its critical role in shaping Palo Alto over the
coming months, Council directed staff to return to the full Council with updates and additional
direction as needed as work on these elements continue. As resource needs solidify, necessary
appropriation actions will also be brought forward for City Council approval to ensure that
progress towards completing the tasks described above can be achieved. Updates on various
work items will be provided as often as practicable and feasible and may be through a variety of
channels such as verbal comments during the City Manager’s Updates, information memoranda
to City Council, or study sessions and action items at City Council when necessary.
In addition to returning to the City Council as a committee of the whole for updates,
engagement with various ad hoc groups and standing committees (e.g. Parks and Recreation
Commission (PRC), Architectural Review Board (ARB), Planning and Transportation Commission
(PTC), Finance Committee (FC), and the Policy and Services (P&S) Committee) is also
anticipated. Staff will also work to keep the community informed of progress on these work
items, as described in greater detail in the Stakeholder Engagement section of this report.
STAKEHOLDER ENGAGEMENT
In various discussions the Council identified several areas for specific stakeholder engagement
and enhanced community engagement for specific work items outlined above. A desire to
cultivate community leaders including emergency volunteers, and neighborhood leaders to
support these recovery efforts is a key priority across all elements of the Community and
Economic Recovery Strategy. There is also a separate but related County ambassador program
underway and staff will continue to connect into this effort as appropriate to support
community engagement during the pandemic. Currently, each prioritized work item is expected
to include engagement. For example, Community Welfare and Wellbeing work items will
include connecting with our local non-profits and arts organizations, building on community
resiliency and other management through the pandemic would engage emergency volunteers,
and more. Staff is planning roundtable forums for specific interest areas to allow for two-way
communication and feedback on initiatives. Similar to the Race and Equity work, a common
hub of information through a central website, regular updates to the City Council and the
community, and online and virtual engagement platforms will be used to engage and inform.
In addition, staff is exploring a community leadership council concept or other venue to engage
and tap into the City’s existing neighborhood associations and other engaged groups like Cool
Block neighborhood blocks, emergency services volunteers. Not only would this provide an
opportunity to maximize already established groups and networks and further community
welfare and wellness. A broader group such as this is both resource intensive and would require
increased responsibility on our community networks but may provide a singular place for
engaged citizens and community leaders to tap into for information-sharing and an opportunity
for those engaged to share with their networks as a way to connect together during this
challenging time.
City of Palo Alto Page 15
RESOURCE IMPACT
The City continues to face unprecedent financial constraints. The prudent measures to contain
costs in the adoption of the FY 2021 Budget have resulted in significant impacts on service
delivery as well as position eliminations, reductions, and freezes. Additionally, the evolving
nature of the pandemic has resulted in persistent uncertainty for economic and revenue
forecasting, and the City will likely face continued adversity and resource scarcity over the
coming years.
As a result of these circumstances, it is imperative that the City prioritize its ongoing work to
ensure that the needs of the community remain met to the extent practicable and possible.
This Community and Economic recovery workplan will serve as the template for the
periodization of services across the different elements for the foreseeable future, from
managing through the pandemic in the short- and medium-terms to focusing the City’s efforts
on priority initiatives even through the long-term.
This report includes recommendations to appropriate funding for specific projects in three
funds, the Fiber Optics Fund for Fiber to the Home and in the General Capital Fund for work on
University Avenue ($150,000) and City Facilities ($500,000) through transfers from the Stanford
University Medical Center (SUMC) fund. A transfer from the Stanford University Center Medical
Fund of $150,000 would come from the expansion cost mitigation funding to establish the
University Avenue Streetscape Update capital project to cover the costs of work on University
Avenue while $500,000 of funding from the Community Health and Safety funding would
increase the Building Systems Improvements capital project (PF-01003) for COVID-19 mitigation
at City Facilities. These actions would leave approximately $2 million in each of these
allocations in the SUMC fund.
To the extent additional resource are identified and need to be appropriated for other work
items, they will be brought forward to City Council for approval. Through the remainder of FY
2021 and the development of the FY 2022 Budget, staff will continue to look for opportunities
to reduce costs to align with available resources while minimizing impacts to the community.
However, at this stage of resource scarcity it must be noted that every further reduction will
constrain service delivery and limit options for meeting community expectations.
ENVIRONMENTAL IMPACT
The action recommended is not a project for the purposes of the California Environmental
Quality Act.