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HomeMy WebLinkAbout2025-06-18 Retail Committee Agenda PacketRETAIL COMMITTEE Regular Meeting Wednesday, June 18, 2025 Community Meeting Room & Hybrid 9:00 AM Retail Committee meetings will be held as “hybrid” meetings with the option to attend by teleconference/video conference or in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/85845544145) Meeting ID: 858 4554 4145 Phone: 1(669)900-6833 PUBLIC COMMENTS General Public Comment for items not on the agenda will be accepted in person for up to three minutes or an amount of time determined by the Chair. General public comment will be heard for 30 minutes. Additional public comments, if any, will be heard at the end of the agenda. public comments for agendized items will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. Requests to speak will be taken until 5 minutes after the staff’s presentation or as determined by the Chair. Written public comments can be submitted in advance to city.council@PaloAlto.gov and will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your subject line. PowerPoints, videos, or other media to be presented during public comment are accepted only by email to city.clerk@PaloAlto.gov at least 24 hours prior to the meeting. Once received, the  Clerk will have them shared at public comment for the specified item. To uphold strong cybersecurity management practices, USB’s or other physical electronic storage devices are not accepted. Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks, posts, poles or similar/other types of handle objects are strictly prohibited; (2) the items do not create a facility, fire, or safety hazard; and (3) persons with such items remain seated when displaying them and must not raise the items above shoulder level, obstruct the view or passage of other attendees, or otherwise disturb the business of the meeting. 1 Regular Meeting June 18, 2025 Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. CALL TO ORDER  PUBLIC COMMENT  Members of the public may speak in-person ONLY to any item NOT on the agenda. 1-3 minutes depending on number of speakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.   ACTION ITEMS   1.Economic Development Activity Report June 2025 and Review of Sewer Use and Stormwater Ordinance Updates Impacts to Business 2.Review and provide feedback on Near-Term Streetscape Improvements and Outdoor Activation Standards for Pedestrian Only Ramona Street; CEQA Status – categorically exempt. FUTURE MEETINGS AND AGENDAS Members of the public may not speak to the item(s)   ADJOURNMENT     2 Regular Meeting June 18, 2025 Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1.Written public comments may be submitted by email to city.council@paloalto.gov. 2.For in person public comments please complete a speaker request card located on the table  at the  entrance  to  the Council  Chambers  and deliver it to the  Clerk prior  to discussion of the item. 3.Spoken public comments for agendized items using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom-based meeting. Please read the following instructions carefully. ◦You may download the Zoom client or connect to the meeting in- browser. If using your browser, make sure you are using a current, up-to-date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. ◦You may be asked to enter  an email  address  and  name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. ◦When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. ◦When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 4.Spoken public comments for agendized items using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN Meeting ID: 858-4554-4145 Phone: 1-669-900-6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329-2550  (voice) or  by  emailing  ada@paloalto.gov. Requests  for  assistance  or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service.  3 Regular Meeting June 18, 2025 Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. California Government Code §84308, commonly referred to as the "Levine Act," prohibits an elected  official of a local government agency from participating in a proceeding  involving a license, permit, or other entitlement for use if the official received a campaign contribution exceeding $500 from a party or participant, including their agents, to the proceeding within the last 12 months. A “license, permit, or other entitlement for use” includes most land use and planning approvals and the approval of contracts that are not subject to lowest responsible bid procedures and have a value over $50,000. A “party” is a person who files an application for, or is the subject of, a proceeding  involving  a  license, permit, or other entitlement for use. A “participant” is a person who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the definition of “financial interest” in the Political Reform Act, which encompasses interests in business entities, real property, sources of income, sources of gifts, and personal finances that may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a proceeding, and you have made a campaign  contribution to a Council  Member  exceeding  $500  made within  the  last  12  months, you must  disclose  the campaign contribution before making your comments.  4 Regular Meeting June 18, 2025 Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. Retail Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Manager Meeting Date: June 18, 2025 Report #:2505-4693 TITLE Economic Development Activity Report June 2025 and Review of Sewer Use and Stormwater Ordinance Updates Impacts to Business RECOMMENDATION Staff recommends that the Retail Committee to receive this Economic Activity Report for the month of June 2025 including a presentation on current Sewer Use and Stormwater Ordinance updates underway and the impacts to business. BACKGROUND The Palo Alto City Council approved Palo Alto’s comprehensive Economic Development Strategy in August 2023. The full strategy is available on the City’s business website, www.paloalto.gov/business. As part of its 2025 priority setting process, the City Council once again selected Economic Development, updating the focus by removing “Transition” and adding “Retail Vibrancy”. In March 2025, the City Council discussed the workplan for this priority which consisted of thirteen objectives. These objectives were informed by the Economic Development Strategy and other community needs, and pending formal approval scheduled in May 2025, serve as the focus of the City’s economic development work for 2025. ANALYSIS Sewer Use and Stormwater Ordinance Updates The City of Palo Alto is seeking public comment on proposed updates to the existing Sewer Use and Stormwater Ordinances, and two new ordinances regarding Fats, Oil, and Grease and Liquid Hauled Waste. The updates will align with new state regulations, permit requirements, and formalize existing processes. Administrative revisions will also be made to simplify and organize the content into four separate Municipal Code chapters for easier use and reference: Sewer Use (Municipal Code Chapter 16.09), Stormwater (Chapter 16.11), Septic Hauler/Hauled Liquid Waste (proposed to be 16.66), and Fats, Oils and Grease (FOG) (proposed to be 16.13). Item 1 Item 1 Staff Report        Item 1: Staff Report Pg. 1  Packet Pg. 5 of 29  Read the proposed revisions for each chapter here: https://www.paloalto.gov/Departments/Public-Works/Watershed-Protection/Sewer-Use-and- Stormwater-Ordinance-Updates The City is collecting comments until July 15, 2025. The City also accepted questions and comments through various public meetings. Following review of public comments, staff will finalize the draft language and bring proposed ordinance revisions to City Council for consideration in Summer 2025. All businesses must comply required best management practices; those with an on-site storm drain inlet have additional trash control requirements. For restaurants, they will need to: comply with new standards for grease control devices (GCDs) when opening a new restaurant, a remodel, or if a current grease control device no longer works. Restaurants with an existing functional grease control device do not need to make changes. Beginning in January 2026, restaurants will need to provide secondary containment for waste fryer oil. Below is a summary table of the changes and impacts: TOPIC CURRENT NEW Allowed GCD materials Concrete and some metals Only fiberglass, polyplastic, and anti-corrosive metals GCD sizing Based on flow rate Flow rate AND cuisine type and meals served Plumbing fixture connections to GCD Limited kitchen and prep area fixtures. Select service areas. All kitchen, prep and service area fixtures Secondary containment for waste oil (fryer oil) Not required Required for all outdoor waste oil containers Required BMPs Limited Codified and explicitly defined Onsite trash management Through housekeeping practices at all businesses In addition – businesses with onsite storm drain inlets, ALSO manage trash through capture devices or trash removal measures Mobile business Mobile businesses deemed responsible party for discharges or other stormwater violations Mobile businesses AND customers hiring the businesses are also responsible A question was raised at the June 11, 2025 California Avenue business stakeholders meeting whether proposed Outdoor Activations would trigger the need for food service establishments to make infrastructure upgrades. Staff responded that staff is not recommending upgrades be required at this time, but that more frequent inspections are expected given the significant increase in food preparation that may be involved with outdoor activation. Item 1 Item 1 Staff Report        Item 1: Staff Report Pg. 2  Packet Pg. 6 of 29  Retail Business Report Attachment A to this report provides information about Certificates of Use and Occupancy issued to retailers between December 2024 and June 2025. The Certificate of Use and Occupancy is required for all businesses operating within commercial tenant spaces. This enables the City to review the proposed land use and assign occupancy limitations based on factors such as usage, square footage, and exiting. The requirement for the Certificate of Use and Occupancy can be triggered by several factors, including a new business, a name change, a change in ownership of the business or property, or a modification to the size of the tenant space. A Certificate of Use and Occupancy does not confer permission to occupy, which is granted when the building permit is 'finaled'. Based on this report, staff are now tracking and engaging with proposed new businesses, such as Yummy Future Coffee, at the former site of American Apparel. Through a separate report, staff are also able to track all businesses that apply for a Certificate of Use and Occupancy. This report allows Economic Development staff to connect with businesses before going through the process. 2025 City Council Priorities The City Council reviewed the 2025 priority objectives in March and are expected to review and adopt the final list in May. For Economic Development there are 12 priority objectives, of which seven will need additional funding to implement. Below provides highlights of progress made on some of the objectives underway. •Council approval of outdoor activation guidelines for California Avenue – the Outdoor Activation Guidelines have been presented to various groups, including the California Avenue Merchants and the Ad Hoc Retail Committee. Guidelines are scheduled to be presented to the full City Council for approval on June 17. The timing is intended to support an implementation timeline that aligns with preparations for the upcoming winter season. •Resume work on new parking garage structure in Downtown core – On April 14, 2025, the City Council directed staff to proceed with preliminary design and environmental review for Option 1a1, a new 274-space parking garage, featuring six levels of above- ground parking with a reserved area to allow for future construction of affordable housing on the site with separate access on Waverley Street. •Complete build-out of fiber-to-the premises pilot Phase 1 with grid modernization –An initial rate structure for the internet service provider services was reviewed with the Utilities Advisory Commission and Finance Committee, adoption of the rates is scheduled for City Council June 16th. 1 New Parking Structure Staff Report: https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=0e41aabf-074b-49ce-a26f-7cb360262171 Item 1 Item 1 Staff Report        Item 1: Staff Report Pg. 3  Packet Pg. 7 of 29  •Council consideration of an ordinance restoring subjective wireless communication facility regulations – This item was approved by the City Council on June 9, 2025. •Enhance partnerships with private-sector stakeholders - Meetings with business districts are scheduled in June with both Cal Ave. and Downtown districts. •Council approval of Ramona Street design and funding appropriations ($) – A consultant contract for near-term street improvements and outdoor activation standards was approved in December 2024 and work is underway. Funding for implementation of the streetscape improvements is included in the proposed CIP budget; completion is targeted for December 2025, contingent on Council approval of the funding. •Council approval of a design option for Cal Ave. ($) – Staff are in the process of finalizing design alternatives and engaging with the business and community on these alternatives prior to bringing them forward to the Retail Committee for review. Significant financial investment will be necessary for a new design, and financial support and feasibility will be an important variable for consideration. •Propose and implement outdoor activation guidelines for car-free Ramona St. ($) – outdoor activation guidelines are under development and scheduled for Retail Committee review at this June 18th meeting. •Refine destination marketing efforts and enhance Palo Alto’s reputation ($) – The City with the support of Good City Company and in partnership with the Chamber of Commerce is working with hotels to assess desire for establishing organized destination marketing efforts. FISCAL/RESOURCE IMPACT No additional funding is needed at this time for the information provided in this report. The City’s Economic Development and Retail Vibrancy efforts may result in changes to revenues, which will be incorporated into future projections and budgets as appropriate. STAKEHOLDER ENGAGEMENT Stakeholder engagement is a critical component of the City’s economic development function. Economic Development staff continues to meet frequently with business stakeholders through individual conversations, Business Connect, meetings with business districts, regular communication with the Chamber of Commerce, and through various other communication channels. ENVIRONMENTAL REVIEW Receipt and acceptance of this report is not a project under CEQA. ATTACHMENTS Attachment A: Permits (Retail) By Type APPROVED BY: Ed Shikada, City Manager Item 1 Item 1 Staff Report        Item 1: Staff Report Pg. 4  Packet Pg. 8 of 29  Retail Building Permits By Type: December 2024 - June 2025 Retail Permit by Type Description Permit No Date Issued Address Record Status Tenant Name Proposed Use Category Proposed Use Classification Use & Occupancy only 25BLD-00647 12/05/2024 195 PAGE MILL RD, STE# 117 Permit Issued The Rendezvous Retail Eating and drinking service Use & Occupancy only 25BLD-00736 12/16/2024 855 EL CAMINO REAL, STE# 103 Permit Issued Wilby Optical Retail Shopping center Use & Occupancy only 25BLD-01143 01/13/2025 448 CALIFORNIA AV Permit Issued Terun Pizzeria Retail Eating and drinking service Use & Occupancy only 25BLD-01153 01/23/2025 405 UNIVERSITY AV Permit Issued Pho Bang Mi Retail Eating and drinking service Commercial Remodel/Repair 23BLD-00451 03/24/2025 180 EL CAMINO REAL, STE# 110 Finaled STANFORD Retail Shopping center Commercial Remodel/Repair 24BLD-01803 03/26/2025 443 EMERSON ST Permit Issued TASTY POT RESTAURANT Retail Eating and drinking service Commercial Remodel/Repair 24BLD-03292 03/31/2025 222 UNIVERSITY AV Permit Issued VERIZON Retail Retail service Commercial Remodel/Repair 24BLD-03446 04/08/2025 201 HAMILTON AV 209 Permit Issued Scher Holdings LLC Retail Retail service Commercial Remodel/Repair 24BLD-03530 04/09/2025 180 EL CAMINO REAL, STE# D101 Permit Issued REFORMATION D101B Retail Shopping center Commercial Remodel/Repair 24BLD-03531 04/10/2025 180 EL CAMINO REAL, STE# DD1301 Permit Issued CEDAR &SAGE DD1300B Retail Eating and drinking service Commercial Remodel/Repair 25BLD-00011 04/18/2025 855 EL CAMINO REAL, STE# 158 Finaled SUSHI HOUSE Retail Eating and drinking service Commercial Remodel/Repair 25BLD-00085 04/28/2025 855 EL CAMINO REAL, STE# 98 Finaled FRAMEBRIDGE Retail Shopping center Commercial Remodel/Repair 25BLD-00114 04/29/2025 2515 EL CAMINO REAL, STE# 110 Permit Issued WOW TEA Retail Eating and drinking service Commercial Remodel/Repair 25BLD-00200 04/30/2025 170 UNIVERSITY AV Permit Issued Yummy Future Coffee Retail Eating and drinking service Commercial Remodel/Repair 25BLD-00370 05/12/2025 535 BRYANT ST Permit Issued PENG'S KITCHEN RESTAURANT Retail Eating and drinking service Commercial Addition & Remodel 24BLD-03211 05/16/2025 180 EL CAMINO REAL, STE# P450 Permit Issued RIVIAN HUB Retail Shopping center Commercial Addition & Remodel 24BLD-03224 05/19/2025 855 EL CAMINO REAL, STE# 157 Permit Issued ROOST AND ROAST Retail Shopping center Item 1 Attachment A - Permits (Retail) By Type        Item 1: Staff Report Pg. 5  Packet Pg. 9 of 29  Retail Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Manager Meeting Date: June 18, 2025 Report #:2505-4695 TITLE Review and provide feedback on Near-Term Streetscape Improvements and Outdoor Activation Standards for Pedestrian Only Ramona Street; CEQA Status – categorically exempt. RECOMMENDATION Staff recommends the Retail Committee review and provide feedback on the proposed Near- Term Streetscape Improvements and Outdoor Activation Standards for Pedestrian Only Ramona Street. EXECUTIVE SUMMARY The proposed near-term streetscape improvements for the pedestrian only portion of Ramona Street are intended to support a vibrant pedestrian street and attract Palo Alto residents and visitors. The Outdoor Activation Standards set forth the permit design requirements for outdoor dining and retail for the pedestrian only Ramona Street. The proposed Standards will facilitate flexible outdoor dining, retail, and other activities, enabling certain commercial uses of public sidewalks and roadway space. This staff report highlights: •Proposed streetscape improvements •Outdoor activation standards and fees •Stakeholder engagement •Fiscal impact The streetscape improvements include street resurfacing with colored and stamped asphalt, minor sidewalk repairs and curb ramps, installation of removable vehicle barriers and planters, signage, and tree well treatment. The Outdoor Activation Standards govern the use of the public right of way for permitted activities. The Outdoor Activation program will be administered by the Public Works Department via the City’s encroachment permit process. The program is consistent with Council Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 1  Packet Pg. 10 of 29  economic development priorities and advances Council action for Ramona Street to be a “pedestrian only street.” Fiscal impacts can be mitigated through permit fees. The streetscape design and development of outdoor activation standards is part of the scope of work for Urban Planning Partners. Funding for the implementation of the improvements is included in the proposed capital budget and will be considered by the City Council as part of the FY 2026 budget adoption. BACKGROUND Since the COVID-19 pandemic in 2020, the City Council has repeatedly affirmed its desire to have a portion of Ramona Street between Hamilton Avenue and University Avenue remain a car-free street. This action was continued through interim ordinances, with final action to amend the Comprehensive Plan and permanently designate this portion of Ramona Street as a pedestrian only street on March 10, 2025. In December 2024, the City Council approved a contract with Urban Planning Partners (UPP) to develop outdoor activation standards and streetscape improvements for approximately 200 feet of Ramona Street, which has been car-free since 2020. The proposed streetscape design (Phase 1) is focused on near-term improvements with a potential future phase (Phase 2) for more extensive upgrades to the street and street amenities. The consultant scope also includes developing outdoor activation standards for this street, including outdoor dining and retail. ANALYSIS Proposed Streetscape Improvements The pedestrian only Ramona Street was designated in 1985 as a Historic District in the National Register of Historic Places1 for its distinctive Spanish Revival and Monterey Colonial architecture. Based on strong stakeholder consensus and the historic elements of the street, the proposed streetscape design utilizes materials and colors that complement the architectural features of the styles, such as stucco walls, terracotta tiles, and ornate iron work. The streetscape is designed to have four distinct zones: arcade, activation zone, pedestrian zone, and emergency access. Outdoor dining, retail, and other permitted activities can occur in the activation zone. Proposed near-term streetscape improvements include the following: 1. Resurfacing Ramona Street between Hamilton and University Avenue, with stamped and colored asphalt to be used in the pedestrian only portion of the street. 1 https://www.cityofpaloalto.org/files/assets/public/planning-community-environment/historic- preservation/ramona-street-architectural-district-national-register-nomination.pdf Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 2  Packet Pg. 11 of 29  2. Repairing sidewalk and installing curb ramps to provide accessible paths for pedestrian travel. 3. Replacing the temporary vehicle barriers with permanent retractable or movable barriers, thus closing the street to vehicular traffic while allowing emergency, utility, and maintenance vehicles’ access. 4. Installing signage to guide vehicular, bicycle, and pedestrian traffic. 5. Installing planters and tree well treatment. Rough estimated costs of key elements of the near-term streetscape improvements are included below for reference purposes. A detailed cost estimate, including materials, labor, and contractor overhead and profit will be developed once the design has been finalized. •Stamped and colored asphalt – estimate is based on stamped and colored asphalt being used within the emergency access lane and at either end of the car-free area ($32,000). •Entry Planters - up to four planters, two at each end (costs range from $1,400 to $8,800, depending on the type of planter and the level of customization). •Retractable Bollards or Movable barriers - up to nine retractable bollards or Movable barriers, four on the University Ave side and five on the Hamilton Ave side (ranging from $100,000 to $189,000). These costs are for the bollards/barriers and their installation only, and do not include any re-routing of utilities. •Tree well treatment - for 18 tree wells along the car-free portion of Ramona Street (cost TBD). Traffic Signage and Parking Through a related but separate project, staff will be updating traffic signage at the University Avenue and Ramona Street intersection to indicate a portion of the street is closed to vehicular traffic. The project will include replacing signage on existing poles and installing a new pole with a “No Outlet” sign. Outdoor Activation Standards The Outdoor Activation Standards draw upon the City’s Ongoing Parklet Program while responding to the unique conditions of a historic district and a pedestrian only environment. The Standards differ from the Ongoing Parklet Program in a few key areas: Street Layout & Access • No vehicular setbacks, vehicle safety measures (e.g., wheel stops, reflective delineators), or guardrails needed • At-grade activation areas are allowed in order to reduce costs, allow flexibility, and mitigate drainage issues • ADA accessible dining and travel paths incorporated into the design Design Elements (Informed by Historic Designation and Stakeholder Feedback) Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 3  Packet Pg. 12 of 29  • Respect historic designation and minimize design elements and signage that detracts from the existing architecture • Use of materials and colors that complement the existing Spanish Revival style of architecture • Required use of high quality furniture • No roof structures or sidewalls, permitted use of umbrellas for weather protection. These standards would require the removal of existing structures that are not in alignment with these guidelines. • No electrical connections are allowed, eliminating the ability for installation of electric heaters or permanent lighting fixtures The Standards outline requirements related to location and site area, setbacks, permitted activities, design (edge treatments, umbrellas), outdoor seating, lighting, heating, branding and signage, site maintenance, trash management, operations, and fees. Detailed outdoor activation standards are included in Attachment A. It is important to note that if Council adopts the proposed Outdoor Activation Standards, the existing parklet program requirements will no longer be applicable once these standards become effective. Any businesses wishing to use outdoor areas in front of adjacent storefronts will be required to obtain a letter of consent as noted in the draft Outdoor Activation Standards. Some design elements are required while some are optional. When an applicant selects a design element, they must meet all of the requirements for that element. Design Element Required for All Permitted Areas Required for Outdoor Dining Optional Dividers  Site Maintenance  Waste Management  Barrier Planters  ADA compliance for Outdoor Dining  Umbrellas  Lighting (solar or battery powered) Heating (with appropriate hazmat permits)  Branding and Signage  Impact of Outdoor Dining on Sanitary Sewer Infrastructure The temporary expansion of outdoor dining (2,674 square feet of dining in parklets/street) on Ramona Street since 2020 has increased total restaurant capacity. The proposed outdoor activation standards will continue to allow restaurants the opportunity to offer outdoor dining, and it is important to acknowledge that this increased dining capacity could increase the risk of fats, oils, and grease (FOG) entering each building’s plumbing system and the City’s sanitary sewer. If each of the seven (7) existing restaurants chose to add outdoor dining in the activation area, the new additional dining area would be 2,770 square feet, resulting in a total of 184 Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 4  Packet Pg. 13 of 29  additional seats. Grease Control Devices (GCDs) were sized for pre-pandemic seating, and it is each dining establishment’s responsibility to ensure that their GCD is in working condition, maintained properly, and upgraded, if needed, to be sized appropriately for additional seating. Staff conducts regular inspections to track the condition and maintenance of GCDs that could impact a building’s plumbing systems and the City’s sanitary sewer system. Staff recommends continuing proactive inspections, requiring more frequent maintenance of restaurant GCD systems, identifying higher-risk systems for improvement, and mitigating future problems through plan review to correct GCD type, size and fixture connections. Depending on the success of these efforts, supplemental sanitary sewer fees may be required for outdoor dining permits to fund increased City maintenance costs. Restroom Capacity Similar to sanitary sewer system demands, outdoor dining also increases the demand for restroom capacity. However, it is typically impractical for most restaurants to individually increase the number of restrooms provided. The proposed outdoor activation standards do not require dining establishments to expand restroom capacity, however, portable restrooms may be required for any special events on the street. Outdoor Activation Fees Staff recommends the same fees for outdoor dining, as established for the Ongoing Parklet Program, and seeks feedback from the Retail Committee on potentially lower license fees for retail or other permitted activities. Fees noted below are proposed for fiscal year 2026 and are subject to Council approval in June. Specific fees include: Initial Application Fee: An initial application fee of $5,004 is required to establish an outdoor activation space to fully recover cost necessary to process an application, conduct site inspections, including Public Works, Utilities, and others such as Planning if applicable review. A portion is also based on staff time required for ongoing program administration such as customer service, compliance with standards, and complaint response. Annual Renewal Fee: An annual renewal fee of $604 is required to review the encroachment permit annually to fully recover costs at a flat rate. An application renewal is not expected to require the same level of staff effort as processing a new application and therefore the fee is less than the initial fee. Deposit Fee: Consistent with other programs in the City, staff recommend a deposit fee of $2,750 to address any unrepaired damage to the roadway or sidewalk or any costs that may be incurred due to the City having to remove permittee property in the activated space. License Fee: A license fee for use of the public right-of-way would be required. The City’s Parklet and outdoor programs operate with an annual license fee of $10.71 per square floor for use of the public right-of-way, which represented an 85% discount on the average 2022 ground floor retail rents in Palo Alto of $71 per square foot. This fee is already being used for outdoor dining Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 5  Packet Pg. 14 of 29  on Ramona St. that are in the public right-of-way. As of Q1 2025 as reported by CoStar, the average rent in the University Avenue (downtown ‘DT’) analysis area is reported at $76 per square foot. Since the activation zones will allow outdoor retail and other permitted activities Council may choose to maintain the same license fee for all permitted activities or adopt a different fee for activities other than dining. Implementation Timeline The near-term streetscape improvements are planned for completion by the end of the calendar year. A tentative project timeline is included in the table below: Timeline Activity June 16 Council consideration of funding for streetscape improvements June 18 Retail Committee meeting July Community meeting and feedback survey August 11 Council consideration of streetscape design and outdoor activation standards October 1 New outdoor activation standards go into effect October 1 Existing parklets and outdoor dining areas must be removed by this date in advance of streetscape project; City will start accepting applications for new outdoor activation permits Oct-Nov Ramona street re-surfacing project, including street improvements December New outdoor dining and retail areas, in compliance with adopted standards, can begin operations FISCAL/RESOURCE IMPACT The streetscape design and development of outdoor activation standards is part of the scope of work for Urban Planning Partners. $225,000 for the implementation of the streetscape improvements is included in the proposed capital budget and will be considered by the City Council as part of the FY 2026 budget adoption. Additionally, funding for resurfacing of the street with standard asphalt is included in the City’s annual street resurfacing contract, approved by Council on June 3, 2025. The outdoor activation of pedestrian only Ramona Street represents a unique environment that will likely require a higher level of maintenance than currently provided by the City. In addition to the ongoing needs for cleanliness of public spaces, potential fiscal impacts include staff time to review and process outdoor activation permits, additional costs associated with increased inspections. Staff time is partially recovered through the existing encroachment permit process. In order to ensure that pedestrian only Ramona Street is maintained in a manner consistent with local businesses’ needs and priorities, as well as supporting economic success, some level of coordination and collective support among the businesses is essential. The City will need to continue encouraging stakeholders to work together on issues of collective interest. Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 6  Packet Pg. 15 of 29  STAKEHOLDER ENGAGEMENT In February 2025, the City convened a meeting with the Downtown Stakeholder Working Group, comprised of members representing property owners, restaurants, retail, residents, and community partners, and with Ramona Street stakeholders. A survey seeking input on specific topics was also sent to all the stakeholders, to allow time for more detailed input. A summary of the feedback is included in the table below. Topic Feedback Overall Streetscape and Outdoor Dining Design •Consensus for street design to reflect Spanish Revival Style. •Consensus for greater design uniformity and design restrictions to achieve a cohesive look that is compatible with the historic street. Streetscape Elements •Asphalt treatment: preference for stamped and colored asphalt over painted or standard asphalt. •Tree wells: preference for flexi-pave treatment over decomposed granite. •Wayfinding/signage: preference for minimal signage and for focus to be on entry signs at either end of the car-free portion of the street. Entry elements to reflect the historic style of the street with earth tones, stucco finish, and blue/green accents. •Landscaping: preference for planting and trees; some noted a preference for planting to not obscure the historic architecture. Outdoor Dining and Retail Elements •Edge treatment: wrought iron or planters •Roof options: preference for no permanent roof structures; only umbrellas to provide shading •Furnishing: mixed feedback about flexible versus prescriptive furnishing options •Platform: mixed preferences about at-grade versus platform Outdoor Activation •Activities: preferred activation types were Play Area, Interactive Art, Performances, Retail Pop-ups Other Feedback •Safety and Cleanliness standards •Deliveries consideration •ADA compliance The City will host a community meeting in July to present the proposed near-term streetscape improvements and draft Outdoor Activation Standards and seek input on the asphalt stamp pattern and color, entry planters and signage, edge treatments and landscape palettes, and the design and colors of shade structures such as umbrellas. Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 7  Packet Pg. 16 of 29  ENVIRONMENTAL REVIEW The proposed program is categorically exempt under CEQA Guidelines Sections 15301 (existing facilities), 15303 (new construction or conversion of small structures), 15304(e) (minor temporary use of land having negligible or no permanent effects on the environment), 15305 (minor alterations in land use limitations), 15311 (accessory structures), and 15323 (normal operations of facilities for public gatherings). ATTACHMENTS Attachment A: Draft Outdoor Activation Standards APPROVED BY: Ed Shikada, City Manager Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 8  Packet Pg. 17 of 29  1 DRAFT 8 2 7 1 Draft Palo Alto Car-Free Ramona Outdoor Activation Standards 1. Street Zones 1.1 The car-free portion of Ramona Street consists of the following four zones: •Arcade: Extension of the building with entryways and recesses set back from the building front. •Activation Zone: Area designated for outdoor dining, retail. merchandise, and non- commercial activity. •Pedestrian Zone: An 8-foot zone that provides pedestrian circulation and access •Fire Access: Provides emergency access to the buildings on Ramona St. 2. Location and Site Area 2.1 Businesses are required to locate their Outdoor Activation space directly in front of the operator’s storefront. 2.2 Commercial outdoor activation is permitted in the following two zones as shown in Figure [1]. •Arcade Zone •Outdoor Activation Zone 2.3 Outdoor Activation spaces shall not obstruct or encroach upon the following: •8-foot pedestrian path on sidewalks •16-20 foot fire access zone •ADA access ramps •setbacks (see section 3.0) 2.4 Any outdoor activation extending beyond the applicant’s storefront requires a letter of consent from the neighboring ground floor tenant(s). See Appendix A for Letter of Consent information. Figure 1 Item 2 Attachment A - Draft Outdoor Activation Standards        Item 2: Staff Report Pg. 9  Packet Pg. 18 of 29  2 DRAFT 8 2 7 1 3. Setbacks: 3.1 Manhole Cover: outdoor activation areas shall be setback a minimum 5-foot radius for access. 3.2 Storm Drain Catch Basin: outdoor activation elements including planters, dividers, and furnishing shall not obstruct storm drain catch basins. 3.3 Utilities: outdoor activation areas shall not obstruct public utilities including water, gas, wastewater, electric, fiber, streetlight, telecommunication vaults, gas mains) 3.4 If improvements to an outdoor activation area conflict with public infrastructure (e.g., signage, benches), applicants must consult Public Works for potential relocation. If relocation isn’t feasible, outdoor activation area must accommodate existing infrastructure. 4. Permitted Activities 4.1 All activity must be contained within the applicant’s permitted outdoor activation space. 4.2 The following commercial and non-commercial activities are allowed within a permitted outdoor activation space: •Dining •Retail •Non-Commercial Activities (such as community events, live music, pop-up installations, and public art). City approval may be required. Contact City of Palo Alto for Requirements. 5. Design Elements 5.1 Barrier Planters (required for outdoor dining) 5.1.a Type: [TBD based on community feedback] 5.1.b Placement: planters shall be placed along the fire lane edge, within the site area. They shall have a gap of 12-24-inches between planters. 5.1.c Planting: planters shall be planted consistent with the Plant Palette in Appendix [B]. 5.1.d Plant maintenance: plants are subject to maintenance standards (see section 11.4) 5.2 Dividers (required for outdoor dining) 5.2.a Type: [TBD based on community feedback] 5.2.b Placement: dividers shall be placed along the both side edges, within the outdoor activation area. Dividers shall not obstruct storm drain catch basins or utilities as outlined in 2.0 Setbacks. 5.3 Umbrellas 5.3.a Type and size: center-pole design. [TBD based on community feedback] 5.3.b Colors: 2-3 color options. [TBD based on community feedback] 5.3.c Wind Rating: up to 30 mph when open; up to 55 mph when closed 5.3.d Freestanding Weighted Base: shall be a minimum of 250lbs (for umbrellas up to 13 feet) 5.3.e Clearance height: minimum 7-foot 6-inches from ground to canopy edge when fully opened Item 2 Attachment A - Draft Outdoor Activation Standards        Item 2: Staff Report Pg. 10  Packet Pg. 19 of 29  3 DRAFT 8 2 7 1 6. Outdoor Seating 6.1 Seating arrangement: Seating should be arranged in line with the slope (see Figure [2]) 6.2 Furnishing: Furnishings must be high-quality, durable, outdoor-rated, and non-reflective (e.g., not plastic) 6.3 Accessibility 6.3.a Any seating and dining must comply with the applicable accessibility requirements outlined in the adopted California Building Code. The establishment shall provide five percent accessible seating for each type of seating provided (table, booth, etc.) or a minimum of one seat per type, whichever is greater, in an outdoor seating area where the slope is no greater than two percent in any direction. 6.3.b Maintain a min. 4’ wide accessible path of travel to accessible tables and 5’ diameter turnaround space on the accessible path of travel 6.3.c Such ADA accessible seating shall be of the same size and appearance as the establishment’s other outdoor seating. 6.3.d See Appendix [C] for standards 7. Lighting 7.1 Permitted lighting: solar-powered string-lights and table lamps 7.2 Placement and specifications: 7.2.a Lighting must stay within the activation area and not encroach into pedestrian walkways 7.2.b Fixtures must aim downward, with shielding to prevent upward light spill 7.2.c Max output: 100 watts or 1,600 lumens per fixture 7.2.d All lighting must be rated for exterior use, listed, and carry a product certificate for its intended use by a recognized electrical testing laboratory. 8. Heating 8.1 Propane heaters are permitted with a HAZMAT permit and CERS submittal. 8.2 Propane (LPG) heaters that meet City of Palo Alto safety, and permitting requirements are permitted. All heaters are to be weather rated, certified for commercial outdoor use and installed according to manufacturer instructions and applicable fire and electrical codes. 8.3 HAZMAT permit is required for storage and use of liquid propane gas. A site plan with the desired location of each heater is required at time of the hazmat permit application. All storage locations and use areas must be noted in the HAZMAT permit application and approved during fire inspection. A final onsite hazmat inspection will be conducted to ensure the proper spacing of heaters from combustibles and emergency access/egress and storage of LPG. 8.4 Proposed outdoor storage of 20-pound containers requires plan review and inspection. 8.5 On-site storage of 20-pound propane containers (5 gal) is prohibited indoors. 8.6 Propane storage is not allowed in the public right-of-way. Figure 2 Item 2 Attachment A - Draft Outdoor Activation Standards        Item 2: Staff Report Pg. 11  Packet Pg. 20 of 29  4 DRAFT 8 2 7 1 8.7 If businesses do not have an approved private outdoor storage area, all propane containers must be removed from the premises at the close of business every day. 8.8 LPG Heaters are not permitted on the sidewalk in the pedestrian path of travel. 8.9 LPG heaters cannot be placed underneath overhead canopies, awnings, inside buildings or tents and they must have 5-feet clearance from any flammable materials. 8.10 Any use of a portable heater, portable generator, candles, open flame or any activity regulated by the Fire code must be approved and permitted by the Palo Alto Fire Department separately from the outdoor activation permit. 8.11 A fire extinguisher is required to be mounted within sight and have appropriate signage per the Fire Code. 9. Branding and Signage 9.1 Only one sign per business is allowed within the activation area. 9.2 Signs must be: •Non-illuminated and non-reflective •Limited to business name only (no advertising or promotional content) •Max size: 6 square feet; max letter height: 15 inches •Mounted no higher than 36 inches from street grade, on the outermost portion of the boundary element. 9.3 Signs are not permitted: •On umbrellas, awnings, or vertical screens above 36 inches •As painted murals, decals, or wraps on activation area surfaces •Any interference with existing poles or signage must be reviewed with Public Works 9.4 Design Guidelines: To create a unified and attractive streetscape, businesses are encouraged to: •Use high-quality materials such as metal, wood, or weatherproof composite panels •Use signage to reflect the unique identity of the establishment and contribute to the overall quality and legibility of Ramona Street streetscape. •Integrate signage into planters, railings, or low screening for minimal visual clutter •Freestanding sandwich boards may be used in activation zones subject to the city’s temporary sign regulations •Consider using coordinated colors or materials among neighboring businesses to reinforce district continuity •Please refer to City of Palo Alto Sign Code 10. Waste Management 10.1 All businesses participating in the Outdoor Activation Program are responsible for proper waste management in compliance with the City’s Zero Waste Palo Alto Ordinance and local solid waste sorting requirements. 10.2 Provide clearly labeled and color-coded containers for: •Recycling (blue-tinted liners) •Compost (green compostable liners) •Landfill (clear liners) 10.3 Containers must be: •Easily accessible to customers and staff •Routinely emptied and cleaned •Kept in a location that does not obstruct pedestrian paths 11. Operation Standards Item 2 Attachment A - Draft Outdoor Activation Standards        Item 2: Staff Report Pg. 12  Packet Pg. 21 of 29  5 DRAFT 8 2 7 1 11.1 Private Control: outdoor activation areas are deemed to be under the control of the permit holder. The permit holder is responsible for securing the outdoor activation and any fixtures and furnishings contained within it at all times, including during hours when the associated business is not in operation. 11.2 Hours of Operation: The outdoor activation area shall adhere to the same approved hours of operation as the associated business. 11.3 Site Maintenance Standards: 11.3.a Outdoor activation areas and the adjacent sidewalk shall be kept clean and litter free. Any food or drink stain shall be cleaned up immediately. Trash and recycling shall be removed, any debris such as leaves or dirt shall be removed, furnishing shall be cleaned daily, any damaged lighting or heaters shall be replaced immediately, and any landscaping shall be maintained (see X.X below). 11.3.b Power washing of the outdoor activation area and adjacent sidewalk is required monthly. 11.4 Plant and Planter Maintenance Standards: 11.4.a Plants shall be consistent with the landscape palette in Appendix [] or an approved equivalent. No plants shall have thorns, spikes, or sharp edges. Poisonous or invasive plants are not permitted. 11.4.b Plants must be kept alive, healthy, and free of significant pest infestation or disease. Dead or dying plants must be replaced within 14 days of observation or notification. 11.4.c Planters and surrounding areas must be kept free of weeds, trash, cigarette butts, and debris. 11.4.d Planters must be structurally sound and clean, free of cracks, chips, or peeling paint. 11.5 Amplified Sound: Amplified is not permitted in outdoor activation areas. Any ambient sound may only originate from the interior of the business’s occupied building. 11.6 Outdoor Dining Specific Operational Standards: 11.6.a Alcohol Service i. Conditional Use Permit is required for a business to serve alcohol. No amendment to an approved business’ Conditional Use Permit is required to serve alcohol in outdoor activation areas. ii. All outdoor activation areas in which alcoholic beverages are served shall comply with standards of the Department of Alcoholic Beverage Control, including having clearly discernable boundaries and signage, as required. iii. All physical requirements of ABC should be reflected in the design submitted for review. 11.6.b Tables shall be placed in conformance with the health and safety standards established by Santa Clara County and State of California. 11.7 Outdoor Retail Specific Operational Standards: 11.7.a All displays must be removed daily. Nothing is permitted overnight. 12. Submittal Requirements: 12.1 Site Plan: Site plan shall be drawn to scale on 11 x17 tabloid paper, include all pertinent dimensions and the following information: •Location of the business frontage •Dimensions of the outdoor activation area(s) •Location of any ADA seating and accessibility measurements (required for outdoor dining) Item 2 Attachment A - Draft Outdoor Activation Standards        Item 2: Staff Report Pg. 13  Packet Pg. 22 of 29  6 DRAFT 8 2 7 1 •Type and location of planters (required for outdoor dining) •Type and location of dividers •Planting palette •Location of public utilities including any manhole covers, gutter drains, fire hydrants, and FDCs, light poles, etc. within 15 feet, and their distances to the outdoor activation area. •Any adjacent installations on the sidewalk including adjacent activation areas, utility boxes, street signs, bike racks, street furniture, street trees, tree wells, etc. and their distances to the outdoor activation area •Width of sidewalk •Locations and extent of any neighboring business(es) the proposed outdoor activation area extends in front of. •Location of signage 12.2 Floor Plan: floor plan of the proposed outdoor activation area showing: •Total number and location of tables and seats and/or benches, including which are ADA seating. •Dimensions of tables, seats, benches. 12.3 Signage: Elevation of signage with dimensions of signage area and lettering. 12.4 Pictures of existing conditions: The application should include at least three photos showing existing are to be converted into the outdoor activation area, the adjacent sidewalk and store frontage. 12.5 List of materials and equipment 12.6 Product sheet for planters, dividers, umbrellas and umbrella stand (including type, size, colors). 12.7 Product sheet for furnishings including tables, chairs, benches. 12.8 Equipment sheet for lighting and heaters including image of equipment and manufacturer’s instructions. 12.9 Outdoor Activation Information: •Business Name •Business Address •Business Owner and contact info •Property Owner Name and Contact Info (if different than business owner) •Proposed Use of the outdoor activation area •Business hours of operation 12.10 Certificate of Insurance (see Appendix [D]) 12.11 Letter(s) of Consent: An outdoor activation area applicant must get a letter of consent from the neighboring ground-floor tenant(s) if the applicant’s outdoor activation area extends beyond their own storefront (see Appendix [A]). If the neighboring ground-floor property is vacant, then a letter of consent is not required for the duration of the permit. i. Outdoor activation area applicant must obtain an up-to-date letter of consent for any future license renewals as requested by Public Works during future permit renewal processes. (i) If an applicant cannot obtain an up-to-date letter of consent, or if outdoor activation occupancy is not in accordance with the terms of any applicable law, these regulations, and/or any permit requirement, the outdoor activation area sponsor is responsible for the removal of the outdoor activation area extending into a neighboring frontage within 90-days. Item 2 Attachment A - Draft Outdoor Activation Standards        Item 2: Staff Report Pg. 14  Packet Pg. 23 of 29  7 DRAFT 8 2 7 1 12.12 Indemnity acknowledgement 13. Fees: Outdoor Activation Areas are subject to the following fees outlined in the City’s Fee Schedule: •Permit Application Fee •Deposit Fee (refundable). This deposit will be used to cover the cost of restoring the right-of-way to its original condition if not done so by the permittee. This includes, but is not limited to, the following: 1. Removing the outdoor activation structures and fixtures 2. Removing bolts in the curb and the right-of-way and filling in holes 3. Removing exposed wiring 4. Repairing damage to the sidewalk 5. Removing construction debris and/or garbage 6. Parking or traffic control striping 7. Wheel stop removal or reinstallation •Permit Renewal Fee •Annual License Fee: This fee will be charged per square foot based on the total outdoor activation area. 14. Failure to Maintain: An who fails to properly and sufficiently maintain the cleanliness, safety, and accessibility of their outdoor activation area may be subject to violations and fines. If maintenance issues are not resolved, the City may revoke the encroachment permit and the permittee may be required by the City to remove the outdoor activation area at their own expense. 15. Utility Maintenance & Public Safety: Because an outdoor activation area may sit atop buried utilities, there may be instances where an outdoor activation area will need to be removed to access a utility beneath it. In the event of necessary utility maintenance or the unlikely event of a utility failure such as a gas leak or water main break that threatens public safety, the City or utility owner may remove the outdoor activation area with little or no notice. Operators are responsible for the cost of re- installing and restoring any damage to the outdoor activation area. In instances of advanced notice (such as street repaving, planned maintenance, etc., the permittee may need to remove and reinstall the outdoor activation area at their sole expense. If the sponsor cannot remove the outdoor activation area, the City will remove the outdoor activation area. 16. Outdoor Activation Removal: If for some reason the permittee decides they no longer wants to maintain an outdoor activation area, the permittee is responsible for notifying the City and removing it at the permittee's own expense. Immediately upon removal the outdoor activation area shall be cleaned and restored to its previous condition to the satisfaction of the City. Item 2 Attachment A - Draft Outdoor Activation Standards        Item 2: Staff Report Pg. 15  Packet Pg. 24 of 29  8 DRAFT Appendix A: Sample Letter of Consent Item 2 Attachment A - Draft Outdoor Activation Standards        Item 2: Staff Report Pg. 16  Packet Pg. 25 of 29  9 DRAFT Appendix B: Plant Palette [pending community feedback] Item 2 Attachment A - Draft Outdoor Activation Standards        Item 2: Staff Report Pg. 17  Packet Pg. 26 of 29  10 DRAFT Appendix C: Accessible Table and Chair ADA Requirements Item 2 Attachment A - Draft Outdoor Activation Standards        Item 2: Staff Report Pg. 18  Packet Pg. 27 of 29  11 DRAFT Appendix D: Certificate of Insurance Requirements Item 2 Attachment A - Draft Outdoor Activation Standards        Item 2: Staff Report Pg. 19  Packet Pg. 28 of 29  12 DRAFT Item 2 Attachment A - Draft Outdoor Activation Standards        Item 2: Staff Report Pg. 20  Packet Pg. 29 of 29