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HomeMy WebLinkAbout2026-05-11 City Council Agenda PacketCITY COUNCIL Special Meeting Monday, May 11, 2026 Council Chambers & Hybrid 4:30 PM Amended Agenda Amended agenda items appear below in RED   Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference 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 76, 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/362027238) Meeting ID: 362 027 238 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. Multiple individuals who wish to speak on the same item may designate a spokesperson. Spokespersons must be representing five or more verified individuals who are present either in person or via zoom. Spokespeople will be allowed up to 10 minutes, at the discretion of the presiding officer. Speaking time may be reduced if the presiding officer reduces the speaking time for individual speakers. Translation services are available upon written request to city.clerk@paloalto.gov received at least 24 hours before the meeting. 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 type 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. TIME ESTIMATES Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public.  1 May 11, 2026 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. CALL TO ORDER   SPECIAL ORDERS OF THE DAY (4:30 - 4:45 PM)   1.City Employee Years of Service Awards and Proclamation acknowledging Public Service Recognition Week 2.Recognizing May as Asian American, Native Hawaiian, and Pacific Islander (AANHPI) Heritage Month and May 10, 2026 as AANHPI Mental Health Awareness Day Item Removed Off Agenda AA1.Proclamation Recognizing National Police Week as May 10-16, 2026 and National Peace Officers' Memorial Day as May 15, 2026 New Item Added CLOSED SESSION (4:45 - 5:15 PM)   3.CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION Subject: Anne Kramer vs City of Palo Alto, Santa Clara County Superior Court Case No. 25CV461517 Authority: Government Code Section 54956.9(d)(1)   AGENDA CHANGES, ADDITIONS AND DELETIONS   PUBLIC COMMENT (5:15 - 5:45 PM) 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. COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (5:45 - 5:55 PM) Members of the public may not speak to the item(s).   STUDY SESSION (5:55 - 7:25 PM)   4.FY 2027 Proposed Operating and Capital Budget - Finance Committee Update and Council Budget Discussion. CEQA Status – Not a project Late Packet Report added    2 May 11, 2026 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. CONSENT CALENDAR (7:25 - 7:30 PM) Items will be voted in one motion unless removed from the calendar by three Council Members.   5.Approval of Issuing Purchase Order C27197248 with Solutions Simplified, Utilizing a State of California Department of General Services Software Licensing Program Contract SLP- 25-70-0181H, to Procure Zscaler Software Maintenance and Support for a Three-Year Term for a Total Not-To-Exceed Amount of $329,886; CEQA Status - Not a Project. 6.Approval of Contract Amendment No. 4 to Contract C19174648A with VERTEXONE SOFTWARE, LLC for the WaterSmart Utilities Customer Portal, to Extend the Term for Three Additional Years ending August 12, 2029 and Increase Compensation by $140,000, for a Revised Total Not to Exceed of $677,763; CEQA Status – Exempt under CEQA Guidelines Section 15308. CITY MANAGER COMMENTS (7:30 - 7:40 PM)   BREAK (15 MINUTES) ACTION ITEMS (Item 7: 7:55 - 8:55 PM; Item 8: 8:55 - 10:25 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters.   7.PUBLIC HEARING / QUASI-JUDICIAL. 3781 El Camino Real [24PLN-00161]: Request for Approval of Major Architectural Review Application to Merge Four Existing Parcels to Create a 63,025 Square-Foot Parcel and to Construct a Seven-Story, Multi-Family Residential Housing Development Project with 183 Units. Thirteen Percent of The Base Units Would be Provided at a Rate Affordable to Low Income. The Project is Proposed in Accordance with Builder’s Remedy (California Government Code Section 65589.5(d)(5)). A Senate Bill 330 Pre-Application was Filed on February 15, 2024. CEQA Status: Exempt Pursuant to Assembly Bill 130 (Public Resources Code Section 21080.66). 8.Expedited Evaluation of the Potential Temporary Closure of the Churchill Avenue Rail Crossing, Determination of Next Steps, and CEQA Status – Statutorily and Categorically Exempt. Supplemental Report added (Continued Item from 4/15/2026 – On April 15, 2026, the City Council Received Presentations and Public Testimony; The Item is Continued to May 11, 2026 for further Council Discussion, Deliberation, and Potential Action – No Additional Public Testimony Will be Heard on May 11, 2026.)  3 May 11, 2026 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. ADJOURNMENT INFORMATION REPORTS Information reports are provided for informational purposes only to the Council and the public but are not listed for action or discussion during this meeting’s agenda.   A.Informational Update on the Palo Alto Dark Fiber Expansion Plan and Fiber-to-the- Premises B.Palo Alto Transportation Management Association 2025 Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey OTHER INFORMATION Standing Committee Meetings this week Rail Committee May 12, 2026 Policy & Services Committee May 12, 2026 Council Appointed Officers Committee May 14, 2026 Climate Action & Sustainability Committee May 15, 2026 Public Comment Letters Schedule of Meetings AMENDED AGENDA ITEMS   2.Recognizing May as Asian American, Native Hawaiian, and Pacific Islander (AANHPI) Heritage Month and May 10, 2026 as AANHPI Mental Health Awareness Day Item Removed Off Agenda   AA1.Proclamation Recognizing National Police Week as May 10-16, 2026 and National Peace Officers' Memorial Day as May 15, 2026 New Item Added   4.FY 2027 Proposed Operating and Capital Budget - Finance Committee Update and Council Budget Discussion. CEQA Status – Not a project Late Packet Report added    4 May 11, 2026 Materials submitted 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: 362-027-238 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.  5 May 11, 2026 Materials submitted 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.  6 May 11, 2026 Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas. City Council Staff Report From: City Manager Report Type: SPECIAL ORDERS OF THE DAY Lead Department: Human Resources Meeting Date: May 11, 2026 Report #:2603-6072 TITLE City Employee Years of Service Awards and Proclamation acknowledging Public Service Recognition Week RECOMMENDATION Staff recommends that City Council recognize employees for their years of dedicated service and acknowledge National Public Service Recognition Week occurring throughout last week from May 3 – 9, 2026. ATTACHMENTS Attachment A: Public Service Recognition Week May 3 – 9, 2026 APPROVED BY: Sandra Blanch, Human Resources Director Item 1 Item 1 Staff Report        Item 1: Staff Report Pg. 1  Packet Pg. 7 of 212  PUBLIC SERVICE RECOGNITION WEEK May 3 - 9, 2026 WHEREAS, Americans are served every single day by public servants at the federal, state, county and city levels. These unsung heroes do the work that keeps our nation working; and across our nation, public employees take not only jobs, but oaths of office; and WHEREAS, many public servants risk their lives each day in service to the people of our communities, as well as providing safety inspections and patrols, maintaining our infrastructure, operate our public facilities, and provide the diverse services demanded by the American people with integrity and diligence; and WHEREAS, public servants provide institutional knowledge, experience, and continuity that support the long- term sustainability of our community assets and organizational history; and WHEREAS, here in our city, our staff promotes and sustains the superior quality of life in Palo Alto, and in partnership with our community delivers cost-effective services in a personal, responsive, and innovative manner; and WHEREAS, over the past year alone, our city staff oversaw the lending of over 1.3 million library materials; cleaned and treated 90+ miles of sewer lines; replaced over 55,000 square feet of sidewalk; processed 5,800 employee personnel transactions; facilitated the participation of over 13,500 individuals in a variety of classes, camps, and programs spanning arts, sciences, recreational activities and open space; maintained 32 parks and over 36,000 trees; provided nearly 4,000 ambulance transports; issued over 4,000 building permits and completed over 18,500 building inspections; and received over 50,000 calls for police or fire services, and much more, all with the professionalism we know and appreciate, day in and day out. NOW, THEREFORE I, Vicki Veenker, Mayor of the City of Palo Alto on behalf of the entire City Council, do hereby proclaim that May 3, 2026, to May 9, 2026, is Public Service Recognition Week. All citizens are encouraged to recognize the accomplishments and contributions of government employees at all levels - federal, state, county and city - and especially our City of Palo Alto employees. Presented: May 11, 2026 ______________________________ Vicki Veenker Mayor Proclamation Item 1 Attachment A - Public Service Recognition Week May 3 - 9, 2026        Item 1: Staff Report Pg. 2  Packet Pg. 8 of 212  City Council Staff Report Report Type: SPECIAL ORDERS OF THE DAY Lead Department: City Clerk Meeting Date: May 11, 2026 Report #:2604-6315 TITLE Recognizing May as Asian American, Native Hawaiian, and Pacific Islander (AANHPI) Heritage Month and May 10, 2026 as AANHPI Mental Health Awareness Day ATTACHMENTS Attachment A: Recognizing May as Asian American, Native Hawaiian, and Pacific Islander (AANHPI) Heritage Month and May 10, 2026 as AANHPI Mental Health Awareness Day APPROVED BY: Mahealani Ah Yun, City Clerk Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 1  Packet Pg. 9 of 212  RECOGNIZING MAY AS ASIAN AMERICAN, NATIVE HAWAIIAN, AND PACIFIC ISLANDER (AANHPI) HERITAGE MONTH AND MAY 10, 2026 AS AANHPI MENTAL HEALTH AWARENESS DAY WHEREAS, Asian American, Native Hawaiian, and Pacific Islander (AANHPI) Heritage Month is observed during the month of May to recognize the contributions and influence of AANHPI communities on the history, culture, and achievements of the United States, and to raise awareness of important issues affecting these communities, including mental health; and WHEREAS, the month of May was selected to commemorate the arrival of the first Japanese immigrants to the United States on May 7, 1843, and to mark the anniversary of the completion of the transcontinental railroad on May 10, 1869, the majority of the workers being Chinese immigrants, including but not limited to Asian American, Native Hawaiian, and Pacific Islander communities; and WHEREAS, citizens of Asian American, Native Hawaiian, and Pacific Islander descent represent more than 35 percent of Palo Alto’s population and are part of the more than 6 million AANHPI individuals residing in California, making these communities an invaluable part of the rich fabric of our City and State; and WHEREAS, for more than 200 years, AANHPI individuals have lived and worked in the United States and have made significant contributions across all sectors, including the economy, culture, education, government, the arts, law enforcement, the military, literature, science, and technology, despite institutional and systemic injustices that have been designed to silence and cover up these achievements and contributions; and WHEREAS, May 10, 2026, is recognized as AANHPI Mental Health Awareness Day, highlighting the need to increase awareness of mental health, reduce stigma associated with seeking care, and improve access to culturally and linguistically responsive services within AANHPI communities, which continue to experience some of the lowest rates of mental health service utilization among all racial and ethnic groups, due in part to stigma as well as cultural and linguistic barriers faced by individuals, families, and communities; and WHEREAS, raising awareness about the mental health of all individuals, and this month, especially of Asian American, Native Hawaiian, and Pacific Islander communities past and present, encourages professional interest in health and human services careers and fosters a diversified workforce that reflects the community. NOW, THEREFORE I, Vicki Veenker, Mayor of the City of Palo Alto, on behalf of the entire City Council, do hereby proclaim May as Asian American, Native Hawaiian, and Pacific Islander Heritage Month, and recognize May 10, 2026 as AANHPI Mental Health Awareness Day, and encourage all community members to celebrate the contributions of Asian American, Native Hawaiian, and Pacific Islander communities, and reaffirm the City of Palo Alto’s commitment to fostering an inclusive community, supporting culturally responsive mental health resources and well-being for all residents. Presented: May 11, 2026 ______________________________ Vicki Veenker Mayor Proclamation Item 2 Attachment A - Recognizing May as Asian American, Native Hawaiian, and Pacific Islander (AANHPI) Heritage Month and May 10, 2026 as AANHPI Mental Health Awareness Day        Item 2: Staff Report Pg. 2  Packet Pg. 10 of 212  City Council Staff Report From: City Manager Report Type: STUDY SESSION Lead Department: Administrative Services Meeting Date: May 11, 2026 Report #:2604-6321 TITLE FY 2027 Proposed Operating and Capital Budget - Finance Committee Update and Council Budget Discussion. CEQA Status – Not a project This report will be a late packet report published on May 7, 2026. APPROVED BY: Lauren Lai, Administrative Services Director Item 4 Item 4 Staff Report        Item 4: Staff Report Pg. 1  Packet Pg. 11 of 212  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: IT Department Meeting Date: May 11, 2026 Report #:2603-6149 TITLE Approval of Issuing Purchase Order C27197248 with Solutions Simplified, Utilizing a State of California Department of General Services Software Licensing Program Contract SLP-25-70- 0181H, to Procure Zscaler Software Maintenance and Support for a Three-Year Term for a Total Not-To-Exceed Amount of $329,886; CEQA Status - Not a Project. RECOMMENDATION Staff recommends that City Council approve and authorize the City Manager or their designee execute Purchase Order C27197248 with Solutions Simplified, utilizing the above-noted SLP-25- 70-0181H1 contract, to procure Zscaler software maintenance and support for a three-year term (July 31, 2026 to July 30, 2029) with an annual amount of $109,962 and a total not-to- exceed amount of $329,886. BACKGROUND The City implemented the Zscaler cloud security platform on July 31, 2023 as part of ongoing efforts to strengthen cybersecurity and modernize remote access. Zscaler provides a cloud- based Zero Trust model that helps protect City systems and data by securing access to the internet, cloud services, and internal applications, while supporting a hybrid workforce. Zscaler replaces traditional VPN-based remote access with application-level access, reducing exposure of the City’s internal network and improving security and performance for staff. As the City’s current subscription term approaches expiration, staff is recommending a three-year renewal to maintain day-to-day operations and cyber risk management. 1 State of California Software Licensing Program (SLP): https://caleprocure.ca.gov/PSRelay/ZZ_PO.ZZ_CTR_SUP_CMP.GBL?Page=ZZ_CTR_SUP_PG&Action=U&SETID=STAT E&CNTRCT_ID=SLP-25-70-0181H Item 5 Item 5 Staff Report        Item 5: Staff Report Pg. 1  Packet Pg. 12 of 212  ANALYSIS Approving this quote and issuing a purchase order will allow the City to continue using Zscaler’s Zero Trust cloud security platform without interruption for the period July 31, 2026 through July 30, 2029. Continuity of this service is critical to protecting City users and systems from evolving cyber threats, securing access to internet and SaaS applications (including Microsoft 365), and enabling reliable, secure access to internal applications for staff working on-site and remotely. A lapse in software maintenance and support could reduce the City’s ability to respond to security events, apply updates, and maintain stable connectivity for business applications. This procurement leverages cooperative contract SLP-25-70-0181H, under which the California Department of General Services (DGS) conducted a competitive solicitation and awarded Solutions Simplified as an approved vendor, allowing eligible public agencies to use the competitively solicited terms. The vendor offered a flat annual rate of $109,962 with no annual escalation, for a total not-to-exceed amount of $329,886 over three years. In addition to utilizing cooperative pricing, City staff negotiated below the cooperative contract price sheet rates, generating additional cost savings while maintaining the required maintenance and support coverage. The costs are expected to occur in FY 2027. Funding for this contract will be included in the FY 2027 annual budget development base budget process, subject to City Council approval consistent with how multi-year technology support contracts are funded in future years. The Information Technology Department (ITD) is supported through an internal service fund model. Approximately 49% of ITD’s costs are funded by the General Fund, with the remaining 51% supported by enterprise and special revenue funds. Staff coordinated with internal City stakeholders to confirm the renewal scope aligns with Citywide cybersecurity and operational requirements. Staff also worked closely with the vendor on the renewal quote to validate licensing needs, confirm service expectations, and ensure continued support for secure access to City applications and services. The approval of this contract is exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15061(b)(3). Attachment A: Solutions Simplified Quote no. 14505 for Zscaler : Darren Numoto, Chief Information Officer; Lisa Bolger, Assistant Director Information Technology/CTO Item 5 Item 5 Staff Report        Item 5: Staff Report Pg. 2  Packet Pg. 13 of 212  Solutions Simplified 3626 Fair Oaks Blvd. Suite 100 Sacramento, CA 95864 www.solutionssimplified.net Date: A Certified Women-Owned Business Quote #: Valid Until: Prepared By: Hanna Medina FEIN:47-5088841 Phone: 530-908-1171 Seller's Permit:102-806808 Fax: 916-244-0351 DUNS:80004788 Email: hanna.medina@solutionssimplified.net CAGE:7GNN0 CUSTOMER Parag Kumar Delivery:Electronic City of Palo Alto FOB:Destination, Freight PPD 250 Hamliton Ave 2nd Floor Payment Terms:Net 45 Palo Alto, CA 94301 USA Contract #:SLP-25-70-0181H parag.kumar@paloalto.gov (650) 329-2626 ITEM #PART #DESCRIPTION QTY UNIT PRICE EXT PRICE TAXED 1 ZIA-BIZ-EDITION 750 $46.50 $34,875.00 N 2 ZPA-BIZ-EDITION 750 $75.68 $56,760.00 N 3 ZCES-SUP-ESS 1 $18,327.00 $18,327.00 N $109,962.00 4 ZIA-BIZ-EDITION 750 $46.50 $34,875.00 N 5 ZPA-BIZ-EDITION 750 $75.68 $56,760.00 N 6 ZCES-SUP-ESS 1 $18,327.00 $18,327.00 N $109,962.00 ZIA Business EditionZscaler, Inc - ZIA-BIZ-EDITION ZPA Business EditionZscaler, Inc - ZPA-BIZ-EDITION Annual Zscaler Support Essentials (20% of List Price) 24/7 support. The published $0.20 price is not the Customer's final price. The purchase price of the software maintenance is based on a Commercial List Price that is 20.0% of the price you paid for thZscaler, Inc - ZCES-SUP-ESS ZIA Business EditionZscaler, Inc - ZIA-BIZ-EDITION ZPA Business EditionZscaler, Inc - ZPA-BIZ-EDITION Annual Zscaler Support Essentials (20% of List Price) 24/7 support. The published $0.20 price is not the Customer's final price. The purchase price of the software maintenance is based on a Commercial List Price that is 20.0% of the price you paid for thZscaler, Inc - ZCES-SUP-ESS Year One Subtotal: Year Two Term: 07/31/2027 - 07/30/2028 Year Two Subtotal: QUOTE 3/5/26 14505 7/30/26 Year One Term: 07/31/2026 - 07/30/2027 Item 5 Attachment A - Solutions Simplified Quote no. 14505 for Zscaler        Item 5: Staff Report Pg. 3  Packet Pg. 14 of 212  7 ZIA-BIZ-EDITION 750 $46.50 $34,875.00 N 8 ZPA-BIZ-EDITION 750 $75.68 $56,760.00 N 9 ZCES-SUP-ESS 1 $18,327.00 $18,327.00 N $109,962.00 Subtotal $329,886.00 NOTES:Tax Rate 8.75% 1. This quote is valid for 30 days from original quote date Tax $0.00 unless otherwise specified above.Total $329,886.00 2. We accept Purchase Order, Visa, Mastercard, & AMEX. 3. Orders placed on a credit card are subject to a 3% fee. THANK YOU FOR YOUR BUSINESS! Please contact us if you have any questions or need further information. 4. Our product return window is 30 days from receipt of order. There are no returns / refunds on software ZIA Business EditionZscaler, Inc - ZIA-BIZ-EDITION ZPA Business EditionZscaler, Inc - ZPA-BIZ-EDITION Annual Zscaler Support Essentials (20% of List Price) 24/7 support. The published $0.20 price is not the Customer's final price. The purchase price of the software maintenance is based on a Commercial List Price that is 20.0% of the price you paid for thZscaler, Inc - ZCES-SUP-ESS Year Three Term: 07/31/2028 - 07/30/2029 Year Three Subtotal: Item 5 Attachment A - Solutions Simplified Quote no. 14505 for Zscaler        Item 5: Staff Report Pg. 4  Packet Pg. 15 of 212  Renewal Term: July 31, 2026 - July 30, 2029 This is a 3-year non-cancellable term with an annual payment structure. The customer agrees that all payments will be paid in a timely manner based on the payment schedule below. Installment Payments: All payments are due NET 30 from their respective invoice date. Customer will pay Carahsoft the Total amount of this quote; in the following installments: Payment 1: $109,962.00 due NET 30 from the invoice date Payment 2: $109,962.00 will be invoiced 1 year from the original purchase date and due NET 30 Payment 3: $109,962.00 will be invoiced 2 years from the original purchase date and due NET 30 The total amount and payments due herein are separate from, and in addition to, any payments due in connection with any other Carahsoft transaction. Failure to pay any installment in a timely fashion will result in all remaining payments to become immediately due. Any fees paid will be non-refundable. For U.S. Government Resellers, such Resellers agree to obtain End User Customer’s acceptance of Zscaler’ s end user subscription agreement (EUSA) by either (1) obtaining End User Customer’s signature on a hard copy of the EUSA; (2) ensuring the EUSA link at:https://www.zscaler.com/legal/end-user-subscription-agreement-us-government-customersis included in the End User Customer’s final binding purchase order to Reseller; or (3) attaching the EUSA as an exhibit to Reseller’s final binding contract/order with End User Customer for the Zscaler Products.In addition to the EUSA, Zscaler's Deployment Services or Professional Services shall be governed by the terms at https://www.zscaler.com/resources/legal/deployment-and-ps-terms.pdfIf Resident Engineer services are purchased as part of this quote, those services are billed infull upfront.All subscriptions purchased herein are non- cancellableSFP (small form-factor pluggable) devices are NOT part of private service edges sku or offering and need to be ordered by Reseller Item 5 Attachment A - Solutions Simplified Quote no. 14505 for Zscaler        Item 5: Staff Report Pg. 5  Packet Pg. 16 of 212  City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Utilities Meeting Date: May 11, 2026 Report #:2602-5926 TITLE Approval of Contract Amendment No. 4 to Contract C19174648A with VERTEXONE SOFTWARE, LLC for the WaterSmart Utilities Customer Portal, to Extend the Term for Three Additional Years ending August 12, 2029 and Increase Compensation by $140,000, for a Revised Total Not to Exceed of $677,763; CEQA Status – Exempt under CEQA Guidelines Section 15308. RECOMMENDATION Staff recommends that the City Council approve and authorize the City Manager, or their designee, to execute Amendment Number 4 to Contract C19174648A with VERTEXONE SOFTWARE, LLC (Attachment A) for the existing WaterSmart Utilities customer portal to: (1) extend the contract term by three (3) years, through August 12, 2029; and (2) increase the contract not-to-exceed (NTE) amount by $140,000 for a revised total contract not-to-exceed amount of $677,763 over the 10-year term. EXECUTIVE SUMMARY The current contract with the Utilities water customer portal vendor, VERTEXONE SOFTWARE, LLC (VertexOne), is set to expire on August 12, 2026. Staff is seeking Council approval to extend the City’s contract for the WaterSmart portal by three (3) additional years to allow customers to continue to access WaterSmart and to support planned improvements necessary for evolving state reporting requirements. The WaterSmart customer portal provides customers with a convenient and secure way to access water consumption information and provides personalized water conservation recommendations, including monthly home water reports, leak alerts, and high-usage notifications supported by Advanced Metering Infrastructure (AMI) data, helping customers make informed decisions about water use in support of the City’s conservation goals. Extending the VertexOne contract also aligns with the Smart Energy Water (SEW) extension for MyCPAU (Staff Report #2601- Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 1  Packet Pg. 17 of 212  58491https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=57638433-bec8- 4ca2-b8cc-6864be2c1d46), allowing both customer-facing portals that are connected through Single Sign-On (SSO) to conclude at similar times, reducing administrative complexity and supporting coordinated planning for future procurements and upgrades. 2). BACKGROUND ANALYSIS 1 Staff Report 2601-5849, March 23, 2026: 2 Staff Report 2304-1380, June 19, 2023: https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82408&dbid=0&repo=PaloAlto&searchid=a8c392d4 -c7d5-4363-b6b2-43d3204d9e98&cr=1 Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 2  Packet Pg. 18 of 212  Integration and Operational Considerations: The WaterSmart portal is integrated with the City’s critical business systems and workflows, including MyCPAU via Single Sign-On (SSO), and the City’s billing system. These integrations provide customers with a seamless experience and reduce operational risk associated with platform changes. Summary Of Proposed Contract Terms Staff recommends extending the current VertexOne contract by three years, increasing the contract not-to-exceed amount by $140,000, and updating Exhibit C Compensation. This amendment results in a revised total contract not-to-exceed amount of $677,763. Since $169,301 remains under the current contract, only $140,000 is needed for the extension period. 5. Table 1: Amendment No. 4 Exhibit C Compensation Annual Costs NTEs Module/Functionality Year 8 Year 9 Year 10 VertexOne Digital Base $24,750 $25,492 $26,257 VXsmart $23,100 $23,793 $24,507 Home Water Reports Base $1,200 $1,236 $1,273 Home Water Reports Variable $274 $282 $291 SSO for End Customer Base $1,800 $1,854 $1,910 SSO for End Customer Variable $1,040 $1,071 $1,103 Transactional Fees - Estimated cost of all transactional fees, plus contingency $22,000 $23,000 $24,072 Year 8 Sub Total $74,164 Year 9 Sub Total $76,728 Year 10 Sub Total $79,412 Total Cost - Year 8 – Year 10 NTE $230,304 5 Staff Report 2407-3199, February 10, 2025: https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83238&dbid=0&repo=PaloAlto&searchid=de1bfff4- 9eb3-4679-b40e-8c28315f4e96 Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 3  Packet Pg. 19 of 212  FISCAL/RESOURCE IMPACT Approval of this amendment would increase the contract’s NTE by $140,000 to support the three-year extension. Through the City’s cost-sharing agreement with Valley Water, Contract S23185976, Valley Water will reimburse the City up to $200,000 per year for AMI-related programs and home water reports. This reimbursement will fully fund the WaterSmart portal through the cost-sharing agreement. Funding for the first year of the extended term is available in the proposed FY 2027 Utilities Department Water Fund budget. Funding for subsequent years is contingent upon Council appropriation and approval of funds through the annual budget process. STAKEHOLDER ENGAGEMENT Palo Alto markets the WaterSmart program through the City’s websites, at community events, via bill inserts, other social media, and newsletters. ENVIRONMENTAL REVIEW Council’s approval of the attached agreement described in this staff report does not meet the definition of a project under the California Environmental Quality Act (CEQA), pursuant to the California Public Resources Code Section 21065, because it is not an activity that will cause a direct physical change in the environment. In the alternative, Council’s approval of this agreement is exempt from review under CEQA Guidelines Section 15308, as an action taken for the protection of the environment. ATTACHMENTS Attachment A: Contract C19174648A Amendment Number 4 with VERTEXONE SOFTWARE, LLC. APPROVED BY: Alan Kurotori, Director of Utilities Staff: Linda Grand, Sustainability Programs Administrator Item 6 Item 6 Staff Report        Item 6: Staff Report Pg. 4  Packet Pg. 20 of 212  Vers.: Aug. 5, 2019 Page 1 of 10 AMENDMENT NO. 4 TO CONTRACT NO. C19174648A BETWEEN THE CITY OF PALO ALTO AND VERTEXONE SOFTWARE, LLC (FKA WATERSMART SOFTWARE, INC.) This Amendment No. 4 (this “Amendment”) to Contract No. C19174648A (the “Contract” as defined below) is entered into as of March 11, 2026, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and VERTEXONE SOFTWARE, LLC, a Delaware limited liability company, located at 1321 Upland Drive, Suite 8389, Houston, TX 77043 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of providing hosted software services, program administration, and support, for an online water efficiency platform, as detailed therein. B. The Parties entered into Amendment No. 1 on March 1, 2022, to update the effective launch date, revise Task 1.2 of the Scope of Services, and clarify compensation. C. The Parties entered into Amendment No. 2 on August 12, 2024, to extend the contract term by six months, from August 12, 2024, to February 12, 2025. D. The Parties entered into Amendment 3 on February 10, 2025, to extend the term by one year and six months, from February 12, 2025, to August 12, 2026, update the Scope of Services, and amend compensation terms without increasing the total Not-to-Exceed Compensation. E. The Parties now wish to amend the Contract in order to increase compensation by One Hundred Forty Thousand Dollars ($140,000) from Five Hundred Thirty-Seven Thousand Seven Hundred Sixty-Three dollars ($537,763) to a new total not to exceed Six Hundred Seventy- Seven Thousand Seven Hundred Sixty-Three Dollars ($677,763), and to extend the term until August 12, 2029, as detailed herein. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a. Contract. The term “Contract” shall mean Contract No. C19174648A between CONSULTANT and CITY, dated August 12, 2019, as amended by: Amendment No. 1, dated March 1, 2022 Item 6 Attachment A - Contract C19174648A Amendment Number 4 with VERTEXONE SOFTWARE, LLC.        Item 6: Staff Report Pg. 5  Packet Pg. 21 of 212  Vers.: Aug. 5, 2019 Page 2 of 10 Amendment No. 2, dated August 12, 2024 Amendment No. 3, dated February 10, 2025 b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 2. “TERM" of the Contract is hereby amended to read as follows: “SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through, August 12, 2029, unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 3. Section 4. “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to read as follows: “SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Six Hundred Seventy- Seven Thousand Seven Hundred Sixty-Three Dollars ($677,763). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.” SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “C” entitled “COMPENSATION, AMENDMENT NO. 4”, AMENDED REPLACES PREVIOUS. SECTION 5. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 6. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) Item 6 Attachment A - Contract C19174648A Amendment Number 4 with VERTEXONE SOFTWARE, LLC.        Item 6: Staff Report Pg. 6  Packet Pg. 22 of 212  Vers.: Aug. 5, 2019 Page 3 of 10 SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO _____________________________ City Manager APPROVED AS TO FORM: _____________________________ City Attorney or Designee VERTEXONE SOFTWARE, LLC By:_______________________________ Name:___ _________ Title:_____________________________ By:________________________________ Name:____ ________ Title:______________________________ Attachments: EXHIBIT “C” entitled “COMPENSATION, AMENDMENT NO. 4” (AMENDED, REPLACES PREVIOUS) Item 6 Attachment A - Contract C19174648A Amendment Number 4 with VERTEXONE SOFTWARE, LLC.        Item 6: Staff Report Pg. 7  Packet Pg. 23 of 212  Vers.: Aug. 5, 2019 Page 4 of 10 EXHIBIT “C” COMPENSATION, AMENDMENT NO. 4 (AMENDED, REPLACES PREVIOUS) The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the task-based rate schedule shown below in Table C-1 up to the not to exceed budget amount for each task set forth below. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, and the total compensation for Additional Services do not exceed the amounts set forth in Section 4 of this Agreement. REIMBURSABLE EXPENSES There are no reimbursable expenses under this Agreement. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, , for such services. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. Table C-1: Anticipated Quarterly Cost Structure* *CONSULTANT will invoice CITY upon completion of each task at the close of each quarter for all costs with exception of the Initialization fee, which is billable upon contract execution. No payment shall be due until each task is completed, or, in the case of reports, until the report is delivered. Payment for quarterly license shall commence in the quarter that the Launch Effective Date occurs. CONSULTANT and CITY agree that CONSULTANT will apply a $9,375 credit to each of the first and second quarterly license payments. All other payments will be made in accordance with Exhibit C. No further compensation will be made for services provided prior to this Amendment. Cost Structure - Years 1-5: Item 6 Attachment A - Contract C19174648A Amendment Number 4 with VERTEXONE SOFTWARE, LLC.        Item 6: Staff Report Pg. 8  Packet Pg. 24 of 212  Vers.: Aug. 5, 2019 Page 5 of 10 Component Q1 Q2 Q3 Q4 Totals Year 1 Integration $5,500 Initialization $20,000 Welcome Letters $16,875 Training $1,500 Reports $12,500 $12,500 $12,500 License $9,375 $9,375 $9,375 $9,375 $138,875 Year 2 Reports $12,500 $12,500 $12,500 $12,500 License $9,375 $9,375 $9,375 $9,375 $87,500 Year 3 Reports $12,500 $12,500 $12,500 $12,500 License $9,375 $9,375 $9,375 $9,375 $87,500 Year 4 Reports $12,500 $12,500 $12,500 $12,500 License $9,375 $9,375 $9,375 $9,375 $87,500 Year 5 Reports $12,500 $12,500 $12,500 $12,500 License $9,375 $9,375 $9,375 $9,375 $87,500 Sub-Total $488,875 Addition al Service $48,888 Item 6 Attachment A - Contract C19174648A Amendment Number 4 with VERTEXONE SOFTWARE, LLC.        Item 6: Staff Report Pg. 9  Packet Pg. 25 of 212  Vers.: Aug. 5, 2019 Page 6 of 10 s Total $537,763 Services Billed in Years 1-6: Years Total Amount Spent Year 1 $58,750 Year 2 $28,125 Year 3 $0 Year 4 $63,500 Year 5 $87,500 Year 6 (Q1-Q2) $43,750 Total $281,625 Cost Structure - Years 6-7: Module/Functionality Q1 Q2 Q3 Q4 Estimated Total Annual Cost Years 6-7 VertexOne Digital Base $4,500 $4,500 $4,500 $4,500 $18,000 VXsmart - $0.80 x 21,000 (total # of accounts $4,200 $4,200 $4,200 $4,200 $16,800 Home Water Reports Base $240 $240 $240 $240 $960 Home Water Reports Variable - $0.01280 for each account receiving reports (est. 15,625) $50 $50 $50 $50 $200 SSO for End Customer Base $3,250 $3,250 $3,250 $3,250 $13,000 SSO for End Customer Variable - $0.03207 for each account (est. 21,000) $169 $169 $169 $169 $674 Transactional Fees - $11,779 $11,799 $11,799 $11,799 $47,116 Item 6 Attachment A - Contract C19174648A Amendment Number 4 with VERTEXONE SOFTWARE, LLC.        Item 6: Staff Report Pg. 10  Packet Pg. 26 of 212  Vers.: Aug. 5, 2019 Page 7 of 10 Estimated cost of all transactional fees, plus a buffer Year 6 Q3 and Q4 Sub Total (Estimated annual cost minus services billed Q1 and Q2) $53,000 Year 7 Sub Total $96,750 Additional Services Budget Remaining $42,888 Estimated Total Cost - Year 6, Q3 – Year 7, Q4 $192,638 Total Billed during Contract Years 1-6,Q2 $281,625 Total Contract Not to Exceed (Amend No. 3) $537,763 Services Billed from Year 6, Q3 through Year 7, Q3: Years Total Amount Spent Year 6 (Q3 and Q4) $40,333 Year 7 (Q1-Q3) $46,504 Total $86,837 Cost Structure - Years 8-10: Module/Functionality Annual Cost Year 8 NTE Annual Cost Year 9 NTE Annual Cost Year 10 NTE VertexOne Digital Base $24,750 $25,492 $26,257 VXsmart $23,100 $23,793 $24,507 Home Water Reports Base $1,200 $1,236 $1,273 Home Water Reports Variable – (est. 15,578 accounts receiving reports) $274 $282 $291 SSO for End Customer Base $1,800 $1,854 $1,910 Item 6 Attachment A - Contract C19174648A Amendment Number 4 with VERTEXONE SOFTWARE, LLC.        Item 6: Staff Report Pg. 11  Packet Pg. 27 of 212  Vers.: Aug. 5, 2019 Page 8 of 10 SSO for End Customer Variable $1,040 $1,071 $1,103 Transactional Fees - Estimated cost of all transactional fees, plus a buffer $22,000 $23,000 $24,072 Total Annual Costs Year 8 – Year 10 Year 8 Sub Total $74,164 Year 9 Sub Total $76,728 Year 10 Sub Total $79,412 Total Cost - Year 8 – Year 10 NTE $230,304 Total Billed during Contract Years 1-7,Q3 $386,462 Cost Year 7, Q4 NTE Sub Total $23,109 Cost Year 8 – 10 NTE Sub Total $230,304 Total Contract Not to Exceed $677,763 Transactional Fees Pricing Transactional fees include the following: outbound message composition fee, document archival fee, pass through & management fees. Transactional Fee Pricing Composition Fee $0.005/communication Document Archival $0.005/communication SMS Pass Through $0.032/SMS Print Pass Through $0.52/Printed Document The pass through & management fee is only incurred if the outbound communication channel is Letter, SMS and/or voice channels. Emails do not incur a Pass Through & Management fee. Letters may not incur the pass through & management fee if the CITY is responsible for print services. Item 6 Attachment A - Contract C19174648A Amendment Number 4 with VERTEXONE SOFTWARE, LLC.        Item 6: Staff Report Pg. 12  Packet Pg. 28 of 212  Vers.: Aug. 5, 2019 Page 9 of 10 The table below provides more clarity around when the various transactional fees are charged. Transactional Fees by Channel Channel Composition Fee Document Archival Fee Pass Through & Management Fee1 Email X X SMS X X X Print X X X Voice X X 1Pass through fee from vendor, plus CONSULTANT administration charge Transactional Fees Scenarios Item Composition Fee Document Archival Fee Pass Through & Management Fee 1 Form Submission X 2 Home Water Reports X X X 3 Ad Hoc Utility Communication (City Staff Triggered Outbound Communication) X X X 4 Welcome Letters, Portal Nudge Letters, & Survey Letters X X X 5 Leak Alerts (AMI & Non- AMI) X X X 6 Usage Notifications (Unplanned Use, High Use) X X X 7 Bill Notifications (Bill X X X Item 6 Attachment A - Contract C19174648A Amendment Number 4 with VERTEXONE SOFTWARE, LLC.        Item 6: Staff Report Pg. 13  Packet Pg. 29 of 212  Vers.: Aug. 5, 2019 Page 10 of 10 Reminder, Bill Ready, Bill Forecast)1 8 Outage Notifications X X X *Fee pricing is based on the total number of communications with end customers. CONSULTANT will provide monthly invoice tracking to ensure spending will not meet the budget threshold without written approval from the CITY.* Item 6 Attachment A - Contract C19174648A Amendment Number 4 with VERTEXONE SOFTWARE, LLC.        Item 6: Staff Report Pg. 14  Packet Pg. 30 of 212  Certificate Of Completion Envelope Id: 2380BBBC-C952-4F2A-9977-E3BADFE707E5 Status: Completed Subject: Complete with Docusign: C19174648A Amendment 4 final.pdf, C19174648A Amendment 4 revised final ... Source Envelope: Document Pages: 10 Signatures: 2 Envelope Originator: Certificate Pages: 2 Initials: 0 Ann Marie Romero AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 annmarie.romero@paloalto.gov IP Address: 170.85.54.117 Record Tracking Status: Original 4/14/2026 11:22:30 AM Holder: Ann Marie Romero annmarie.romero@paloalto.gov Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Signer Events Signature Timestamp Keith Foerster Keith.Foerster@vertexone.ai CFO Security Level: Email, Account Authentication (None)Signature Adoption: Uploaded Signature Image Using IP Address: 24.162.82.191 Sent: 4/17/2026 8:23:50 AM Viewed: 4/17/2026 2:15:28 PM Signed: 4/17/2026 2:15:51 PM Electronic Record and Signature Disclosure: Not Offered via Docusign Tracey Brown tracey.brown@vertexone.ai CEO Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 2600:387:15:4e12::5 Signed using mobile Sent: 4/17/2026 2:15:53 PM Resent: 4/20/2026 10:42:49 AM Viewed: 4/20/2026 2:51:38 PM Signed: 4/20/2026 2:52:09 PM Electronic Record and Signature Disclosure: Not Offered via Docusign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 4/14/2026 11:26:20 AM Envelope Updated Security Checked 4/14/2026 11:38:25 AM Item 6 Attachment A - Contract C19174648A Amendment Number 4 with VERTEXONE SOFTWARE, LLC.        Item 6: Staff Report Pg. 15  Packet Pg. 31 of 212  Envelope Summary Events Status Timestamps Envelope Updated Security Checked 4/14/2026 11:38:25 AM Envelope Updated Security Checked 4/14/2026 11:38:25 AM Envelope Updated Security Checked 4/14/2026 12:50:04 PM Envelope Updated Security Checked 4/14/2026 12:50:04 PM Envelope Updated Security Checked 4/14/2026 12:50:04 PM Envelope Updated Security Checked 4/16/2026 1:57:55 PM Envelope Updated Security Checked 4/16/2026 1:57:55 PM Envelope Updated Security Checked 4/16/2026 1:57:55 PM Envelope Updated Security Checked 4/16/2026 1:57:55 PM Envelope Updated Security Checked 4/16/2026 1:57:55 PM Envelope Updated Security Checked 4/20/2026 10:42:47 AM Envelope Updated Security Checked 4/20/2026 10:42:47 AM Envelope Updated Security Checked 4/20/2026 10:42:47 AM Certified Delivered Security Checked 4/20/2026 2:51:38 PM Signing Complete Security Checked 4/20/2026 2:52:09 PM Completed Security Checked 4/20/2026 2:52:09 PM Payment Events Status Timestamps Item 6 Attachment A - Contract C19174648A Amendment Number 4 with VERTEXONE SOFTWARE, LLC.        Item 6: Staff Report Pg. 16  Packet Pg. 32 of 212  CITY COUNCIL Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Planning and Development Services Meeting Date: May 11, 2026 Report #: 2603-6070 TITLE PUBLIC HEARING / QUASI-JUDICIAL. 3781 El Camino Real [24PLN-00161]: Request for Approval of Major Architectural Review Application to Merge Four Existing Parcels to Create a 63,025 Square-Foot Parcel and to Construct a Seven-Story, Multi-Family Residential Housing Development Project with 183 Units. Thirteen Percent of The Base Units Would be Provided at a Rate Affordable to Low Income. The Project is Proposed in Accordance with Builder’s Remedy (California Government Code Section 65589.5(d)(5)). A Senate Bill 330 Pre-Application was Filed on February 15, 2024. CEQA Status: Exempt Pursuant to Assembly Bill 130 (Public Resources Code Section 21080.66). RECOMMENDATION Staff recommends that City Council: 1. Consider the project exempt from California Environmental Quality Act (CEQA) in accordance with Assembly Bill (AB) 130 (Public Resources Code Section 21080.66); and 2. Approve the Major Architectural Review application based on findings and subject to conditions of approval in the Draft Record of Land Use Action (RLUA) in Attachment B. EXECUTIVE SUMMARY The proposed residential project includes 183 rental units, thirteen percent of the base units of 1(23 units total)￿ would be provided at a rate affordable to low-income households or below, with two levels of above ground parking. The project includes demolition of 14 residential rental units as well as approximately 10,100 square feet of commercial floor area across four existing parcels located at 3727-3737 & 3773-3783 El Camino Real, 378-400 Madeline Court, and 388 Curtner Avenue. These four parcels would be merged through a Certificate of Compliance to create a single parcel for the proposed development. 1 Inclusionary percentage is based on the pre-density bonus count of 177 units. Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 1  Packet Pg. 33 of 212  The applicant filed a compliant pre-application in accordance with Senate Bill (SB) 330 on February 15, 2024 (24PLN-00048). Therefore, the project analysis is based on the applicable standards at the time the compliant SB 330 pre-application was submitted. In addition, the project is considered a “Builder’s Remedy project” as defined in the recently adopted AB 1893. Accordingly, the project may not be denied on the basis of inconsistency with the Zoning Ordinance or Comprehensive Plan land use designation. The project is further afforded numerous protections as detailed below. BACKGROUND Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 2  Packet Pg. 34 of 212  Code Section 65589.5(d)(5), commonly known as Builder's Remedy, and qualifies for additional protections as a "Builder's Remedy 2.0 project" under AB 1893. The applicant's full project description, including a list of waivers requested under State Density Bonus Law, is provided in Attachment F. As discussed in greater detail in this report, provided the project is designed in compliance with all relevant objective standards, the City may not impose conditions that would prevent construction of the project as proposed, even after the application of density bonus incentives, concessions, and waivers. Architectural Review – Major (AR): The process for evaluating this type of application is set forth in Palo Alto Municipal Code (PAMC) Section 18.77.070. AR applications are reviewed by the ARB and recommendations are forwarded to the Planning and Development Services Director for action within five business days of the Board’s recommendation. Action by the Director is appealable to the City Council if filed within 14 days of the decision. The Director may instead forward a project directly to City Council for final action in accordance with PAMC Section 18.40.180. AR projects are evaluated against specific findings. All findings must be made in the affirmative to approve the project. Failure to make any one finding requires project redesign or denial. The findings to approve an AR application are provided in Attachment B. Housing Accountability Act (Government Code 65589.5): The project constitutes a “housing development project,” as well as “housing for very low, low-, or moderate income households” under the Housing Accountability Act. The Housing Accountability Act Section 65589.5(d) states that a city cannot deny such a project or impose conditions of approval that would render it infeasible unless it makes specified findings. Among those findings are: that the project would have a specific, adverse impact upon the public health or safety that cannot be mitigated. “Specific, adverse impact” means “a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, written public health or safety standards, policies, or conditions as they existed” at the time of the preliminary application. Because the project is a “Builder’s Remedy 2.0 project,” under AB 1893, the City is further limited to only enforcing those objective standards that exist in a zone district or land use designation that allows the density requested. If there are no such zoning districts or general plan designations in the City, then the applicant may identify any City standards that facilitate the project and only those standards shall apply. If the project meets these identified standards, the City cannot impose conditions of approval that preclude the project from being constructed as proposed by the applicant. Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 3  Packet Pg. 35 of 212  Because the project is a “Builder’s Remedy 2.0 project,” under AB 1893, the “base density” for purposes of State Density Bonus Law shall be the maximum density permitted for Builder’s Remedy projects (e.g. three times the density permitted in the zoning code or general plan). The project applicant is also able to utilize incentives, concessions, and waivers under State Density Bonus Law when demonstrating compliance with the enforceable standards. Architectural Review Board On January 15, 2026, the ARB recommended approval of the project (3-0) with Vice Chair Adcock and Board Member Hirsch absent. The ARB also recommended that City Council consider the following conditions of approval for the project: Add third elevator to the northeast wing of the structure. Clear path of travel within bike room with the addition of a door to the parking garage. Add an off-street loading space. Improve the parking garage screening to neighbors. Recess the entrance along El Camino Real to ensure an 8-foot clearance when doors are open. Expand 3rd-floor balconies, where possible. Streamline balconies along El Camino Real with different materials to reduce transparency. Reduce the visual massing of the structure through architectural expertise with refined facade detailing, and upper story stepbacks, potentially moving the top floor back by 4 feet. Provide detailed courtyard sections explaining the spa and plantings. ANALYSIS Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 4  Packet Pg. 36 of 212  Other portions of the project site are designated multiple-family, where the permitted number of housing units varies by area, depending on existing land use, proximity to major streets and public transit, distance to shopping and environmental problems. Net densities range from 8 to 90 persons per acre (8 to 40 units). Density should be on the lower end of the scale next to single-family residential areas. However, densities higher than what is permitted may be allowed where measurable community benefits will be derived, services and facilities are available, and the net effect will be consistent with the Comprehensive Plan. Housing Element Consistency The project site was not identified as a Housing Inventory Site in the adopted Housing Element. However, the proposed development would provide 169 net new units units, including 23 units at a rate affordable to low-income, which would count toward the City’s Regional Housing Needs Allocation (RHNA). These units would help advance Housing Element implementation by contributing housing in areas outside the inventory. The project would also help offset shortfalls if identified inventory sites are not developed to their assumed capacity or timeframe. El Camino Real Design Guidelines Consistency The project is also subject to the El Camino Design Guidelines and South El Camino Design Guidelines to the extent that these guidelines include objective standards. The design guidelines are intended to direct the project design process toward solutions that, given site conditions and the requirements of the development program, best meet City goals and community values and expectations. Notable recommendations include landscaping buffers, screening of mechanical equipment and parking areas, pedestrian oriented designs in the CN district, minimizing the number of driveways, limiting building colors to no more than three primary colors, and defining corner elements. As proposed, the project is generally consistent with these guidelines, although only objective standards may be applied to the project. Where the guidelines encourage specific requirements such as colors and defining corner elements, the project complies with the related objective standards set forth under PAMC Chapter 18.24. Although the project does not include a ground floor commercial use and, accordingly, does not provide ground floor glazing/transparency, this deviation is permitted under the builder’s remedy. Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 5  Packet Pg. 37 of 212  Zoning Compliance Because the site area is comprised of four lots, there are two different zoning designations across these lots, including portions zoned CN and RM-30. The project does not propose to rezone these parcels for consistency across the resulting parcel. However, the site is located within the El Camino Real Focus Area. The El Camino Real Focus Area modifies and replaces some of the development standards provided in base zone districts and applicable combining district regulations for housing development projects. In some instances, the El Camino Real Focus Area standards refer to the governing base district regulations. Therefore, Attachment C includes a summary of the project’s consistency with the El Camino Real Focus Area standards as it would apply to each zone district on the site. Additionally, Attachment D includes a summary of the project’s consistency with the objective design standards set forth in PAMC Chapter 18.24. Multi-Modal Access Valley Transit Authority (VTA) bus line 22 runs along El Camino Real with a bus stop near the far southern corner of the project site. The project is located approximately 1.2 miles from the California Avenue Caltrain Station and fronts El Camino Real. California Department of Transportation recently installed Class III and Class IV bicycle facilities along El Camino Real adjacent to the project frontage, further enhancing multimodal access for cyclists. Vehicular access to the project site is provided from Curtner Avenue, consistent with the current parcels. The project includes a single vehicular access where there are two. Parking and Loading The project includes 196 vehicle parking spaces, 36 of which would be tandem, and six motorcycle parking spaces, exceeding the 183 vehicle parking spaces required under the Zoning Code (pursuant to the focus area standards). Of the resident-assigned spaces, 151 would be electric vehicle (EV)-capable, including one accessible EV space and one van-accessible EV space, with 39 non-EV spaces also provided. The project is required to provide 183 EV-ready spaces in compliance with the California Green Building Code (CalGreen). Therefore, a condition of approval has been added to require that parking comply with CalGreen requirements. Bicycle parking is provided within the parking garage near the El Camino Real frontage and includes 144 long-term bicycle spaces. An additional four short-term bicycle spaces are proposed to be Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 6  Packet Pg. 38 of 212  located within the front setback along El Camino Real. The Zoning Code requires 183 total bicycle spaces as well as 18 short-term spaces, while CalGreen requires approximately 23 short- term spaces. The conditions of approval require the applicant to provide short-term bicycle parking in conformance with CalGreen code requirements. Title 8 Consistency (Trees) The project site has a total of 41 existing trees representing 14 species that were assessed in the Preliminary Arborist Report dated July 11, 2024, by HortScience, Bartlett Consulting. Of the 41 trees documented, 31 trees are recommended to be removed, only one of which is protected, a bronze loquat that is within the foundation footprint along the Curtner Avenue frontage. A total of 12 trees would be preserved, including all trees within the El Camino Real right-of-way and all trees on the neighboring properties. The project proposes a total of 72 new trees along property lines, as street trees, and within open space areas. Tree replacement mitigation values for the project are further detailed in the Tree Disposition Table (L-5.4) of the plan set, see Attachment G. FISCAL/RESOURCE IMPACT Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 7  Packet Pg. 39 of 212  plus the applicable public art fee. These fees are required to either be paid at building permit issuance or, with the recordation of a lien on the property, may be deferred until occupancy. STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 8  Packet Pg. 40 of 212  Attachment G: Project Plans APPROVED BY: Item 7 Item 7 Staff Report        Item 7: Staff Report Pg. 9  Packet Pg. 41 of 212  Attachment A Location Map 3781 El Camino Real Item 7 Attachment A - Location Map        Item 7: Staff Report Pg. 10  Packet Pg. 42 of 212  1 1 1 4 5 8 DRAFT ACTION NO. 2026-__ On _________, 2026, the City Council of the City of Palo Alto (“City Council”) approved a Major Architectural Review application for development of 183 residential rental units (“the project”). In approving the application, Council makes the following findings, determinations, and declarations: SECTION 1. Background. A. On February 15, 2024, Camino Real Development LLC & Kendall Investors, LLC filed a compliant pre-application in accordance with Senate Bill (SB) 330 and with California Government Code Section 65589.5(d)(5) (also known as Builder’s Remedy). B. On June 10, 2024, Camino Real Development LLC & Kendall Investors filed an Architectural Review application (24PLN-00161) for construction of a 183 rental unit residential project to merge four existing lots to create a single resulting 63,025-square-foot parcel (1.49 acres). The project includes 177 base units and 6 density bonus units, for a total of 183 units, as well as the following density bonus waivers and concessions in accordance with State Density Bonus Law, and additional protections as a “builder’s remedy project,” under AB 1893: Waiver 1: Build-to-lines (90% of frontage built to setbacks where a maximum 50% along El Camino Real is required) Waiver 2: Upper Story Step Back (None proposed where a 10-foot step-back above 55 feet in height is required) Waiver 3: Lot Coverage (83% where maximum 80% is allowed) Waiver 4: Front setback (15 feet along Curtner Avenue, minimum 20 feet is required) Waiver 5: Rear and Side Daylight Plane (None provided where 10 feet at lot line then 45-degree angle is required) Waiver 6: Housing typologies (one to two-acre lots are required to provide a minimum of two housing types) Waiver 7: Street Trees (9 trees provided, required 16 trees) C. The project site is comprised of four existing lots: APN No. 132-41-084, approximately 9,160 square feet, developed with mixed-use; APN No. 132-41-083, approximately 18,376 square feet, developed with a commercial use; APN No. 132-41-020, approximately 29,618 square feet, developed with a multi-family residential use; APN No. 132- 41-019, approximately 5,627 square feet, developed with a multi-family residential use. Adjacent uses include a mix of commercial and low-intensity, one-story and two-story buildings, as well as low density residential uses surrounded by surface parking. Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 11  Packet Pg. 43 of 212  2 1 1 4 5 8 D. Following staff review, the Architectural Review Board held a duly noticed public hearing to review the Major Architectural Review application on January 15, 2026, and recommended approval to City Council. E. On ___________, 2026 the City Council held a duly noticed public hearing at which evidence was considered, and all persons were afforded an opportunity to be heard in accordance with the City Council’s policies and procedures. SECTION 2. Environmental Review. The City, as the lead agency for the Project, has determined the project is exempt from California Environmental Quality Act (CEQA) in accordance with AB 130 [Public Resources Code section 21080.66]. Documentation to support the streamlined review is available as part of the public record on file with the Planning and Development Services Division. SECTION 3. Architectural Review Findings. In order to make a recommendation of approval, the project must comply with the following Findings for Architectural Review as required in Chapter 18.76.020 of the PAMC. 1.The design is consistent with applicable provisions of the Palo Alto Comprehensive Plan, Zoning Code, coordinated area plans (including compatibility requirements), and any relevant design guides. A summary of the project’s consistency with the Comprehensive Plan is provided in this table. Because the project is a “builder’s remedy project,” as defined in Gov. Code section 65589.5(h)(11), and in accordance with Gov. Code section 65589.5(f)(6)(A), the project is required to comply only with objective, quantifiable, written development standards, conditions, and policies that would have applied to the project had it been proposed on a site with a general plan designation and zoning classification that allow the density and unit type proposed by the applicant. Moreover, in accordance with Gov. Code section 65589.5(f)(6)(D)(iii), a project that complies with such objective standards, conditions, and policies “shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, redevelopment plan and implementing instruments, or other similar provision for all purposes.” Comp Plan Goals and Policies How project adheres or does not adhere to Comp Plan The Comprehensive Plan land use designation for the site is Neighborhood Commercial (CN) and Multiple-Family Residential (MF). Consistent with the Comprehensive Plan’s encouragement of housing near transit centers, higher density multi-family housing may be allowed in specific locations in the Neighborhood Commercial land use designation. The project is located along a Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 12  Packet Pg. 44 of 212  3 1 1 4 5 8 high-quality transit corridor and the portions of the project site that are within these land use designations are identified as Housing Inventory Sites under the adopted Housing Element. Therefore, the proposed use multi- family residential use is consistent with these Comprehensive Plan land use designations. Housing Element Policy 4.3 Implement development standards, objective design standards, and architectural and green building standards that encourage new high-quality rental and ownership housing. The project complies with the implemented standards except where requests for waivers or concessions in accordance with state law is provided. The project provides the necessary upgrades to infrastructure on the site to provide new high-quality rental units. The project complies with all required green building requirements in accordance with state law and the city’s local reach code. Land Use and Community Design Goal L-1 A compact and resilient city providing residents and visitors with attractive neighborhoods, work places, shopping districts, public facilities and open spaces. The project redevelops existing developed parcels and provides an attractive development that is generally consistent with the City’s design criteria. Policy L-1.3: Infill development in the urban service area should be compatible with its surroundings and the overall scale and character of the city to ensure a compact, efficient development pattern. The project is an urban infill development proposal in the urban service area of the city. Policy L-1.4: Commit to creating an inventory of below market rate housing for purchase and rental. The proposed residential project includes 183 rental units, and 13 percent of the base 177 units (excluding density bonus units) would be provided at a rate affordable to low-income households or below. This would add 23 low income rental units to the City’s BMR housing stock. Goal L-2 An enhanced sense of “community” with development designed to foster public life, meet citywide needs and embrace the principles of sustainability. The project is designed to comply with CALGreen Tier 2 requirements that incorporate sustainable design, construction, and operational requirements to reduce energy and water operational costs and increase indoor air quality for building owners and occupants. Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 13  Packet Pg. 45 of 212  4 1 1 4 5 8 Policy L-2.2 Enhance connections between commercial and mixed use centers and the surrounding residential neighborhoods by promoting walkable and bikeable connections and a diverse range of retail and services that caters to the daily needs of residents. The project site is located on and adjacent to El Camino Real, a local serving and regional serving corridor, defined by a mix of commercial uses and housing. Caltrans recently installed Class III and Class IV bike lanes, which run along the project’s frontage on El Camino Real. Residents would be able to utilize these connections to other surrounding areas. Goal L-6: Well-designed buildings that create coherent development patterns and enhance city streets. The project frontage along El Camino Real provides a sidewalk and retains the existing four street trees. Alongside Curtner Avenue, the project proposes five new street trees for an inviting streetscape. The project includes high quality materials such as brick and stucco that aid in creating a cohesive design. Policy L-9.2 Encourage development that creatively integrates parking into the project, including by locating it behind buildings or underground wherever possible, or by providing for shared use of parking areas. Encourage other alternatives to surface parking lots that minimize the amount of land devoted to parking while still maintaining safe streets, street trees, a vibrant local economy and sufficient parking to meet demand. Parking would be screened behind the first floor amenity spaces alongside El Camino Real with the parking garage entrance located along Curtner Avenue. Further, 196 parking spaces would be provided on-site exceeding the El Camino Real focus area parking requirements. Transportation Element Policy T-3.7 Encourage pedestrian-friendly design features such as sidewalks, street trees, on-street parking, gathering spaces, gardens, outdoor furniture, art and interesting architectural details. The project includes direct connections to the sidewalk that help to activate the frontage along El Camino Real in addition to new street trees along Curtner Avenue. Policy T-3.9 Support citywide sustainability efforts by preserving and enhancing the tree canopy where feasible within the public right- of-way, consistent with the Urban Forest Management Plan, as amended. The project meets the tree canopy replacement requirements through on-site plantings. The project includes removal of 31 trees and replaces with 72 trees, which are proposed to be located along property lines, in the right of way, and within open space areas. The South El Camino Real Design Guidelines are applicable to the project, to the extent that the standards are objective, and the site is located within the Triangle Area Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 14  Packet Pg. 46 of 212  5 1 1 4 5 8 Pedestrian Node. The project is consistent with the Guidelines, below is an analysis of the applicable guidelines: 3.1.1 Effective Sidewalk Width: Create a 12-foot effective sidewalk width along El Camino Real The project proposes a 12-foot effective sidewalk width. 3.1.2 Sidewalk Setback Design: The design of the sidewalk setback should create an urban “downtown” character. The proposed sidewalk setback includes areas for short-term bicycle parking and architectural wall lights. 3.1.3 Build to lines: Buildings should be built up to the sidewalk to reinforce the definition and importance of the street. The project provides 90% built to the setback while still providing the effective 12-foot sidewalk width. 3.1.5 Minimum Height: Buildings should have a minimum height of 25 feet in order to provide presence along El Camino Real. The project is 82 feet in height to the parapets. 3.3.1 Usable Amenities: Landscape and hardscape features should not just be visually appealing, but also function as open space amenities to be used and enjoyed. The project includes outdoor seating areas, dining areas, and three spa areas with one cold plunge pool. 4.1.8 Expression of Use: Building forms should be articulated as an expression of the building use. The project has been revised to add additional definition to the two-story residential entry area at the building’s corner. The balconies also provide visible private outdoor space, identifying the residential uses. 4.2.1 Relationship of Entries to the Street: Buildings should have entries directly accessible and visible from El Camino Real. The building has an entrance facing El Camino Real and Leasing entrance facing Curtner Avenue visible from El Camino Real. 4.3.6 Design Consistency on All Facades: All exposed sides of a building should be designed with the same level of care and integrity. All sides of the building use the same variety of materials and level of detail. They are also articulated for visual interest and to reduce massing. 4.4.1 Amenities: Building design should offer amenities to users and the public such as protection from the elements and places for people to gather or retreat. The project provides a number of public and private gathering areas. 4.5.1 Flat Roofs and Parapets Encouraged. Flat roofs with parapets are strongly encouraged. The proposed building has a flat roof with parapet design. Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 15  Packet Pg. 47 of 212  6 1 1 4 5 8 4.8.1 Mix of Materials: Juxtaposition of contrasting materials can create interest when carefully integrated. This project includes stucco, brick, glass, wood-like panel soffits, and metal in a composed design. 2.The project has a unified and coherent design, that: a.creates an internal sense of order and desirable environment for occupants, visitors, and the general community, b.preserves, respects and integrates existing natural features that contribute positively to the site and the historic character including historic resources of the area when relevant, c.is consistent with the context-based design criteria of the applicable zone district, d.provides harmonious transitions in scale, mass and character to adjacent land uses and land use designations, e.enhances living conditions on the site (if it includes residential uses) and in adjacent residential areas. The project is consistent with Finding #2 because: The project is comprised of various residential amenity spaces at the first floor, third floor, and seventh floor and offers short-term bike racks for visitors and well as long-term bike lockers for residents. There is pedestrian access from El Camino Real and Curtner Avenue to promote walkability and connectivity. However, cars can only enter the garage on Curtner Avenue, as required per the objective standards. The pedestrian walkways are paved with attractive materials and landscaped. The project proposes to construct a building that is generally taller than the immediately surrounding buildings. However, adjacent to the project site to the north, there is another recently built residential building that is four stories in height. The proposed project is consistent with the findings to provide high quality materials and finishes in a neutral color palette. The building will have residential amenity spaces on the first floor with a majority of those spaces utilizing glazing, which helps to engage the sidewalk. While the project at 82 feet in height exceeds surrounding development, the project complies with the height limits within the El Camino Real Focus Area and deviates from the objective standards in a manner consistent with State law. 3.The design is of high aesthetic quality, using high quality, integrated materials and appropriate construction techniques, and incorporating textures, colors, and other details that are compatible with and enhance the surrounding area. The project is consistent with Finding #3 because: Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 16  Packet Pg. 48 of 212  7 1 1 4 5 8 The project proposes a contemporary style that is recognizable along the El Camino Real corridor overall and aligns with the recent residential development to the north of the project site. The project uses materials such as stucco, brick, wood-like panel soffits, and metal railings on the balconies and metal awnings. As conditioned, the stucco surfaces will be a smooth finish texture. The proposed colors are neutral and are compatible with surrounding color schemes. The design is functional, allowing for ease and safety of pedestrian and bicycle traffic and providing for elements that support the building’s necessary operations (e.g. convenient vehicle access to property and utilities, appropriate arrangement and amount of open space and integrated signage, if applicable, etc.). The landscape design complements and enhances the building design and its surroundings, is appropriate to the site’s functions, and utilizes to the extent practical, regional indigenous drought resistant plant material capable of providing desirable habitat that can be appropriately maintained. Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 17  Packet Pg. 49 of 212  8 1 1 4 5 8 6.The project incorporates design principles that achieve sustainability in areas related to energy efficiency, water conservation, building materials, landscaping, and site planning. The project is consistent with Finding #6 because: In accordance with the City’s Green Building Regulations, the project will satisfy the requirements for CALGreen Mandatory + Tier 2. This is demonstrated on the GB sheets in the plan set. SECTION 4. Conditions of Approval Architectural Review. Planning 1. CONFORMANCE WITH PLANS. Construction and development shall be in substantial conformance with the approved plans entitled, "3781 El Camino Real – Major Architectural Review” uploaded to the Palo Alto Online Permitting Services Citizen Portal on March 17, 2026, as modified by these conditions of approval. 2. BUILDING PERMIT. Apply for a building permit and meet any and all conditions provided in this document. A copy of this cover letter and conditions of approval shall be printed on the second page of the plans submitted for building permit. 3. BELOW MARKET RATE (BMR) HOUSING. This project is proposed as a Builder’s Remedy project, as defined in AB 1893, and is providing thirteen percent of the proposed 177 base units at prices affordable to lower income households. This also represents an alternative means of compliance with the City’s inclusionary housing requirement stated in Palo Alto Municipal Code Chapter 16.65. The applicant shall execute and record a BMR regulatory agreement in a form satisfactory to the City Attorney. The project shall conform to the approved regulatory agreement, which shall be recorded prior to issuance of building permit or final map, whichever occurs first. All BMR units constructed under this condition shall be in conformance with the City’s BMR Program rules and regulations, as modified by the concession granted pursuant to State Density Bonus Law regarding unit distribution. Failure to comply with the timing of this condition and any adopted BMR Program rules and regulations shall not waive its later enforcement. 4. RENTER PROTECTIONS. The project is subject to the renter protection requirements set forth in PAMC Section 9.68.060 for no fault evictions for rental properties with more than 10 units. This includes either rental fee waiver for the last month or relocation assistance as detailed in the municipal code. Notification requirements in accordance with the code is required. Documentation showing compliance with these code requirements must be provided to the project planner prior to issuance of a demolition/deconstruction permit. 5. PROJECT MODIFICATIONS. All modifications to the approved project shall be submitted for Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 18  Packet Pg. 50 of 212  9 1 1 4 5 8 review and approval prior to construction. If during the Building Permit review and construction phase, the project is modified by the applicant, it is the responsibility of the applicant to contact the Planning Division/project planner directly to obtain approval of the project modification. 6. LANDSCAPE PLAN. Plantings shall be installed in accordance with the approved plan set prior to occupancy and shall be permanently maintained and replaced as necessary. 7. STANDARD CONDITION FOR VAPOR INTRUSION. For projects which are known to be subject to risk of vapor intrusion, the applicant shall assess site conditions to determine both the nature and extent of contamination. If contamination at the site exceeds the most current environmental screening levels (ESLs) identified by the Regional Water Quality Control Board (RWQCB) for volatile organic compounds, the applicant shall prepare and submit a Site Management and Contingency Plan (SMCP) to either the Department of Toxic Substances Control (DTSC), RWQCB, or the County of Santa Clara Department of Environmental Health for approval. The SMCP shall include details regarding the pending development and propose remediation and/or mitigation to address any environmental risk identified in the site assessment. The applicant shall agree to and implement all recommendations of the reviewing regulatory agency approving the SMCP in order to reduce the exposure of future occupants to vapor intrusion. A copy of the approved SMCP shall be submitted to the Director of Planning prior to issuance of a building permit. If the reviewing agency requires that a vapor intrusion barrier system be installed, the VIMs shall be document in the building permit plan set prior to issuance of the building permit. Post construction indoor air monitoring shall be conducted for any VIMS systems and shall comply with the specific recommendations set forth by the regulatory agency approving the SMCP. 8. STANDARD CONDITION NESTING BIRD SURVEY. Vegetation or tree removal shall be prohibited during the general avian nesting season (February 1 – August 31), if feasible. If nesting season avoidance is not feasible, the applicant shall retain a qualified biologist, as approved by the City of Palo Alto, to conduct a preconstruction nesting bird survey to determine the presence/absence, location, and activity status of any active nests on or adjacent to the project site no more than 14 days prior to scheduled vegetation clearance and/or demolition activities. If nesting birds are found to be present, a suitable buffer (typically a minimum buffer of 50 feet for passerines and a minimum buffer of 250 feet for raptors) as determined appropriate by the biologist, shall be established around such active nests and no construction shall be allowed within the buffer areas until a qualified biologist has determined that the nest is no longer active (i.e., the nestlings have fledged and are no longer reliant on the nest). A report documenting any data recovered during monitoring Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 19  Packet Pg. 51 of 212  10 1 1 4 5 8 shall be prepared by a qualified biologist and submitted to the Director of Planning prior to final planning inspection. 9. CULTURAL SENSITIVITY TRAINING. Prior to issuance of any grading permit, the project applicant shall be required to submit evidence that a Cultural Awareness Training program has been provided to construction personnel. The training shall be facilitated by a qualified archaeologist in collaboration with a Native American representative registered with the Native American Heritage Commission for the City of Palo Alto and that is traditionally and culturally affiliated with the geographic area as described in Public Resources Code Section 21080.3. 10. SUB-SURFACE MONITORING. Prior to issuance of any tree removal, grading, demolition, and/or building permits or activities, the applicant shall notify the Director of Planning, of grading and construction dates and activities that require a qualified archeologist and Native American monitor to be present on the project site. The City shall then notify the tribe via e-mail correspondence 10 days prior to any grading or construction activities. If the tribe chooses not to send a monitor or does not respond within the 10 days, work shall continue without the monitor. 11. ARCHEOLOGICAL AND CULTURAL MONITORING. A qualified archaeologist and a Native American monitor, registered with the Native American Heritage Commission for the City of Palo Alto and that is traditionally and culturally affiliated with the geographic area as described in Public Resources Code Section 21080.3, shall be present during earthmoving activities including, trenching, initial or full grading, scraping or blading, lifting of foundation, boring, drilling, or major landscaping. The qualified archaeologist and Native American monitor shall have the authority to halt construction activities within 50 feet of a discovery in the event any cultural materials are encountered during ground-disturbing construction activities. The qualified archeologist and Native American monitor shall keep a daily monitoring log on days that monitoring occurs documenting construction activities that were monitored, location of the monitoring, and any cultural materials identified. These daily monitoring logs shall be made available to the City upon request. 12. ARCHEOLOGICAL AND CULTURAL TREATMENT PLAN. In the event any significant cultural materials are encountered during construction, construction within a radius of 50 feet of the find would be halted, the Director of Planning shall be notified, and the on-site qualified archaeologist, in collaboration with the Native American Monitor, shall examine the find and make appropriate recommendations regarding the significance of the find and the appropriate treatment of the resource. The qualified archeologist in collaboration with a Native American monitor, registered with the Native American Heritage Commission for the City of Palo Alto and that is traditionally Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 20  Packet Pg. 52 of 212  11 1 1 4 5 8 and culturally affiliated with the geographic area as described in Public Resources Code Section 21080.3, shall prepare and implement a treatment plan that reflects permit-level detail pertaining to depths and locations of excavation activities. The treatment plan shall contain, at a minimum: 1. Identification of the scope of work and range of subsurface effects (including location map and development plan), including requirements for preliminary field investigations. 2. Description of the environmental setting (past and present) and the historic/prehistoric background of the parcel (potential range of what might be found). 3. Monitoring schedules and individuals. 4. Development of research questions and goals to be addressed by the investigation (what is significant vs. what is redundant information). 5. Detailed field strategy to record, recover, or avoid the finds and address research goals. 6. Analytical methods. 7. Report structure and outline of document contents. 8. Disposition of the artifacts. 9. Security approaches or protocols for finds. 10. Appendices: all site records, correspondence, and consultation with Native Americans, etc. The treatment plan shall utilize data recovery methods to reduce impacts on subsurface resources. The treatment plan must be reviewed and approved by the Director of Planning, or the Director’s designee prior to implementation of the plan. 13. ARCHEOLOGICAL AND CULTURAL EVALUATION. The project applicant shall notify the Director of Planning, Native American Monitor, and Archeological Monitor, of any finds during grading or other construction activities. Any historic or prehistoric material identified in the project area during excavation activities shall be evaluated for eligibility for listing in the California Register of Historic Resources as determined by the California Office of Historic Preservation. Data recovery methods may include, but are not limited to, backhoe trenching, shovel test, hand augering, and hand-excavation. The techniques used for data recovery shall follow the protocols identified in the approved treatment plan. Data recovery shall include excavation and exposure of features, field documentation, and recordation. All documentation and recordation shall be submitted to the Northwest Information Center, and the Director of Planning. 14. UNANTICIPATED DISCOVERY OF BURIED ARCHEOLOGICAL AND TRIBAL CULTURAL RESOURCES. If human remains are found, the State of California Health and Safety Code Section 7050.5 states that no further disturbance shall occur until the County Coroner has Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 21  Packet Pg. 53 of 212  12 1 1 4 5 8 made a determination of origin and disposition pursuant to Public Resources Code Section 5097.98. In the event of an unanticipated discovery of human remains, the County Coroner must be notified immediately. If the human remains are determined to be of Native American origin, the Coroner will notify the Native American Heritage Commission, which will determine and notify a most likely descendant (MLD). The MLD has 48 hours from being granted site access to make recommendations for the disposition of the remains. If the MLD does not make recommendations within 48 hours, the landowner shall reinter the remains in an area of the property secure from subsequent disturbance. 15. The project shall be revised to comply with the applicable CalGreen requirements, including but not limited to meeting Electric vehicle and bicycle parking requirements. 16. In accordance with Mitigation measure Air 2a of the Comprehensive Plan EIR, these BMPs shall be implemented during all demolition, grading, and construction activities to reduce construction-related particulate emissions: 1. Exposed surfaces (e.g., parking areas, staging areas, soil piles, graded areas, and unpaved access roads) shall be watered two times per day or covered. 2. Haul trucks transporting soil, sand, or other loose material off-site shall be covered. 3. Visible mud or dirt track-out onto adjacent public roads shall be removed using wet power vacuum street sweepers at least once per day. The use of dry power sweeping is prohibited. 4. Vehicle speeds on unpaved roads shall be limited to 15 miles per hour. 5. Roadways, driveways, and sidewalks to be paved shall be completed as soon as possible. Building pads shall be laid as soon as possible after grading unless seeding or soil binders are used. 6. Idling times shall be minimized either by shutting equipment off when not in use or reducing the maximum idling time to five minutes (as required by the California airborne toxics control measure Chapter13, Section 2485 of California Code of Regulations [CCR]). Clear signage explaining this rule shall be provided for construction workers at all access points. 7. Construction equipment shall be maintained and properly tuned in accordance with the manufacturer’s specifications. Equipment shall be checked by a certified mechanic and determined to be running in proper condition prior to operation. 8. A publicly visible sign shall be posted with the telephone number and name of an individual working for the construction contractor who can be contacted regarding dust complaints. This person shall respond and take corrective action within 48 hours. The BAAQMD’s phone number shall also be visible to ensure compliance with applicable regulations. Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 22  Packet Pg. 54 of 212  13 1 1 4 5 8 17. NOISE MITIGATION IN CONFORMANCE WITH COMPREHENSIVE PLAN POLICY N6.11.1 AND MITIGATION MEASURE NOISE-8 IN THE COMPREHENSIVE PLAN EIR. Noise control measures would include, but not be limited to, the following BMPs that would further decrease the project’s noise impacts during construction: The contractor shall use “new technology” power construction equipment with state-of-the art noise shielding and muffling devices. All internal combustion engines used on the project site shall be equipped with adequate mufflers and shall be in good mechanical condition to minimize noise created by faulty or poorly maintained engines or other components. The unnecessary idling of internal combustion engines shall be prohibited. Staging areas and stationary noise-generating equipment shall be located as far as possible from noise-sensitive receptors such as residential uses (a minimum of 200 feet)  The surrounding neighborhood shall be notified early and frequently of the construction activities. A “noise disturbance coordinator” shall be designated to respond to any local complaints about construction noise. The disturbance coordinator would determine the cause of the noise complaints (e.g., beginning work too early, bad muffler, etc.) and institute reasonable measures warranted to correct the problem. A telephone number for the disturbance coordinator would be conspicuously posted at the construction site. Utilize ‘quiet’ models of air compressors and other stationary noise sources where technology exists. Equip all internal combustion engine-driven equipment with mufflers, which are in good condition and appropriate for the equipment. Construct temporary noise barriers, where feasible, to screen stationary noise- generating equipment when located within 200 feet of adjoining sensitive land uses. Temporary noise barrier fences would provide a 5dBA noise reduction if the noise barrier interrupts the line of- sight between the noise source and receptor and if the barrier is constructed in a manner that eliminates any cracks or gaps. If stationary noise-generating equipment must be located near receptors, adequate muffling (with enclosures where feasible and appropriate) shall be used. Any enclosure openings or venting shall face away from sensitive receptors. Ensure that generators, compressors, and pumps are housed in acoustical enclosures. Locate cranes as far from adjoining noise-sensitive receptors as possible. During final grading, substitute graders for bulldozers, where feasible. Wheeled heavy equipment are quieter than track equipment and should be used where feasible. Substitute nail guns for manual hammering, where feasible. Substitute electrically powered tools for noisier pneumatic tools, where feasible. Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 23  Packet Pg. 55 of 212  14 1 1 4 5 8 Prior to building permit issuance the contractor shall prepare a detailed construction plan identifying the schedule for major noise-generating construction activities. The construction plan shall identify a procedure for coordination with adjacent residential land uses so that construction activities can be scheduled to minimize noise disturbance. 18. NOISE MITIGATION IN CONFORMANCE WITH COMPREHENSIVE POLICY N6.11.1 AND MITIGATION MEASURE NOISE-5a IN THE COMPREHENSIVE PLAN EIR. The project proponent shall implement a construction vibration monitoring plan to document conditions prior to, during, and after vibration generating construction activities for the adjacent residential uses. All plan tasks shall be undertaken under the direction of a licensed Professional Structural Engineer in the State of California and be in accordance with industry-accepted standard methods. The construction vibration monitoring plan shall be submitted to the City prior to issuance of a Grading or Building Permit and shall include, but not be limited to, the following measures: The report shall include a description of measurement methods, equipment used, calibration certificates, and graphics as required to clearly identify vibration- monitoring locations. A list of all heavy construction equipment to be used for this project and the anticipated time duration of using the equipment that is known to produce high vibration levels (clam shovel drops, vibratory rollers, hoe rams, large bulldozers, caisson drillings, loaded trucks, jackhammers, etc.) shall be submitted to the Director of Planning and Development Services or Director’s designee of the Department of Planning & Development by the contractor. This list shall be used to identify equipment and activities that could exceed the 0.3 PPV threshold at the adjacent residential uses based on the planned equipment, location, and duration of use. Where project construction activities may be anticipated to exceed the threshold, the applicant shall provide a plan to show how levels would be reduced by phasing activities that are known to cause excessive vibration, utilizing alternative equipment, and/or reducing the time period that the equipment is being used. Where possible, use of the heavy vibration-generating construction equipment shall be prohibited within 20 feet of the adjacent residential uses. o Smaller equipment (less than 18,000 pounds) must be used near the property lines adjacent to the existing residential uses to minimize vibration levels to 0.3 in/sec PPV or less. For example, a smaller vibratory roller similar to a Caterpillar model CP433E vibratory compactor could be used when compacting materials within 20 feet of the adjacent residential buildings. The smaller equipment intended to implement this requirement shall be individually identified among the list of equipment required under the above condition as the subset of equipment allowed for use at the property lines. o Avoid using vibratory rollers and clam shovel drops within 20 feet of the adjacent residential uses. Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 24  Packet Pg. 56 of 212  15 1 1 4 5 8 o Select demolition methods that do not involve large impact tools such as hoe-rams within 20 feet of the eastern property line. Portable jackhammers, saws, or grinders shall be used to minimize impacts to the ground. o Avoid dropping heavy equipment and use alternative methods for breaking up existing pavement, such as a pavement grinder, instead of dropping heavy objects, within 20 feet of the adjacent residential uses. • Develop a vibration monitoring and construction contingency plan to identify structures where monitoring would be conducted, set up a vibration monitoring schedule, define structure-specific vibration limits, and address the need to conduct photo, elevation, and crack surveys to document before and after construction conditions. Construction contingencies shall be identified for when vibration levels approach the limits of 0.3 in/sec PPV at the adjacent residential buildings. • At a minimum, vibration monitoring shall be conducted during demolition and excavation activities. • Designate a person responsible for registering and investigating claims of excessive vibration. The contact information of such person shall be clearly posted on the construction site. Conduct a post-construction survey on structures where either monitoring has indicated high vibration levels or complaints of damage has been made. Make appropriate repairs or compensation where damage has occurred as a result of construction activities. 19. OPEN AIR LOUDSPEAKERS (AMPLIFIED MUSIC). In accordance with PAMC Section 9.12, no amplified music shall be used for producing sound in or upon any open area, to which the public has access, between the hours of 11:00pm and one hour after sunrise. In addition, all rooftop gardens/decks shall comply with the provisions of PAMC 18.42.230. 20. NOISE THRESHOLDS ON RESIDENTIAL PROPERTY. In accordance with PAMC Section 9.10.030, No person shall produce, suffer or allow to be produced by any machine, animal or device, or any combination of same, on residential property, a noise level more than six dB above the local ambient at any point outside of the property plane. At building permit, provide the proposed HVAC specifications. If the proposed decibel level of the HVAC exceeds the decibel level of the HVAC evaluated in the CEQA analysis, a noise analysis of the proposed equipment’s consistency with the municipal code shall be required. 21.NOISE REPORT PRIOR TO INSPECTION. Where the acoustical analysis submitted at building permit for noise producing equipment projects noise levels at or within 5 dB less than the Noise Ordinance limits, the applicant shall demonstrate the installed equipment complies with the anticipated noise levels and the Noise Ordinance prior to final Planning inspection approval. 22. SIGN APPROVAL NEEDED. No signs are approved at this time. All signs shall conform to the requirements of Title 16.20 of the Palo Alto Municipal Code (Sign Code) and shall be subject to approval by the Director of Planning. Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 25  Packet Pg. 57 of 212  16 1 1 4 5 8 23. TRASH ROOM. The trash room shall be used solely for the temporary storage of refuse and recycling that is disposed on a regular basis and shall be closed and locked during non- business hours. 24. UTILITY LOCATIONS. In no case shall utilities be placed in a location that requires equipment and/or bollards to encroach into a required parking space. In no case shall a pipeline or water and wastewater services/laterals/meters be placed within 10 feet of a proposed tree and/or tree designated to remain, or within 5 feet where root barrier protection is installed, unless otherwise approved by urban forestry and waste-gas-water. 25. ESTIMATED IMPACT FEE. Development Impact Fees, currently estimated in the amount of $10,029,295.09 shall be paid in accordance with PAMC Chapter 16.64. The final Development Impact Fees shall be calculated before they are due, and payment may be deferred to the date the development is approved for occupancy as set forth in PAMC Section 16.64.030 and as permitted by SB 937. 26. IMPACT FEE 90-DAY PROTEST PERIOD. California Government Code Section 66020 provides that a project applicant who desires to protest the fees, dedications, reservations, or other exactions imposed on a development project must initiate the protest at the time the development project is approved or conditionally approved or within ninety (90) days after the date that fees, dedications, reservations or exactions are imposed on the Project. Additionally, procedural requirements for protesting these development fees, dedications, reservations and exactions are set forth in Government Code Section 66020. IF YOU FAIL TO INITIATE A PROTEST WITHIN THE 90-DAY PERIOD OR FOLLOW THE PROTEST PROCEDURES DESCRIBED IN GOVERNMENT CODE SECTION 66020, YOU WILL BE BARRED FROM CHALLENGING THE VALIDITY OR REASONABLENESS OF THE FEES, DEDICATIONS, RESERVATIONS, AND EXACTIONS. If these requirements constitute fees, taxes, assessments, dedications, reservations, or other exactions as specified in Government Code Sections 66020(a) or 66021, this is to provide notification that, as of the date of this notice, the 90-day period has begun in which you may protest these requirements. This matter is subject to the California Code of Civil Procedures (CCP) Section 1094.5; the time by which judicial review must be sought is governed by CCP Section 1094.6. 27. INDEMNITY. To the extent permitted by law, the Applicant shall indemnify and hold harmless the City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against any claim, action, or proceeding brought by a third party against the indemnified parties and the applicant to attack, set aside or void, any permit or approval authorized hereby for the Project, including (without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with attorneys of its own choice. Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 26  Packet Pg. 58 of 212  17 1 1 4 5 8 28. FINAL INSPECTION. A Planning Division Final inspection will be required to determine substantial compliance with the approved plans prior to the scheduling of a Building Division final. Any revisions during the building process must be approved by Planning. Contact your Project Planner, Steven Switzer at Steven.Switzer@PaloAlto.gov to schedule this inspection. Public Art Building Division Transportation Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 27  Packet Pg. 59 of 212  18 1 1 4 5 8 1. Evaluate project ingress and egress operations, including driveway functionality and queuing; 2. Analyze intersection operations and impacts at the Curtner Avenue / El Camino Real intersection, considering the existing “No Right Turn on Red” restrictions; 3. Evaluate potential impacts to the suggested safe routes to school along Curtner Avenue with respect to multimodal access; and 4. Identify and recommend improvements as necessary, subject to City approval. 34. OFF SITE IMPROVEMENTS: Off-site improvement plans shall be submitted to the Office of Transportation for review and approval. These improvements shall incorporate all recommendations identified in the transportation analysis prepared for the project. Off-site improvements include, but are not limited to, design modifications that support on site circulation and prevent queuing or other operational deficiencies within the public right of way. Any proposed modifications to the public right of way shall be evaluated to ensure they can be safely accommodated given existing lane geometry. 35. TRANSPORTATION DEMAND MANAGEMENT (TDM): The applicant shall prepare and submit a final TDM Plan consistent with the Comprehensive Plan policies for the El Camino Real corridor and that demonstrates a minimum 30 percent reduction in project generated vehicle trips. The plan shall identify parking and trip reduction measures, include trip targets and a monitoring and enforcement mechanism, and designate the responsible entity for implementation. All approved TDM measures shall be maintained for the life of the project. Monitoring reports shall be submitted two years after occupancy and annually thereafter. If performance targets are not met, the applicant shall implement modifications as required by the Director. Failure to correct deficiencies may result in administrative penalties or other enforcement actions consistent with the Municipal Code. 36. BICYCLE PARKING: In accordance with California Green Building Standards Code (CALGreen), the project shall provide one on-site short term bicycle parking space per 10,000 square feet. Short term bicycle parking spaces shall be located within 200 feet of building entrances and readily visible to passers-by. 37. LOADING ZONES: No project dedicated loading space shall be located within the public right of way. The project shall maintain at minimum one, on-site loading space. 38. CONSISTENCY WITH CALTRANS SR-82 IMPROVEMENTS: All off-site improvements shall be consistent with the recently completed Caltrans SR 82 (El Camino Real) improvements, including existing “No Parking” signage along El Camino Real. Any temporary alterations to bike lane enhancements shall be restored to existing conditions upon completion of the project. Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 28  Packet Pg. 60 of 212  19 1 1 4 5 8 39. BUS SHELTER COORDINATION: Potential impacts to the existing VTA bus shelter at the intersection of Curtner Avenue and El Camino Real shall be reviewed and approved through VTA’s development review process. The applicant shall comply with all requirements issued by the transit authority. Public Works Zero Waste Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 29  Packet Pg. 61 of 212  20 1 1 4 5 8 46. On the plans submitted for building permit provide cut-sheets for the color-coded internal and external containers, related color-coded millwork, and its colored signage in the building plans. Trash chutes must have colored doors with colored signage that complies with PAMC 5.20.18 requirements. 47. All indoor and outdoor common spaces are required to comply with the following: As per Palo Alto Municipal Code 5.20.108 the site is required to have color-coded refuse containers, related color-coded millwork, and colored signage. The three refuse containers shall include recycle (blue container), compost (green container), and garbage (black container). Applicant shall present on the plan submitted for building permit the locations and quantity of both (any) internal and external refuse containers, its millwork, along with the signage. However, for the copy/ mail area must have either a recycle bin only or all three refuse receptacles (green compost, blue recycle, and black landfill container). Please refer to PAMC 5.20.108 and the Internal Container Guide. Examples of appropriate signage can be found in the Managing Zero Waste at Your Business Guide. Electronic copies of these signage can be found on the Zero Waste Palo Alto’s website, https://www.paloalto.gov/Departments/Public-Works/Zero-Waste/What-Goes- Where/Toolkit#section-2 and hard copies can be requested from the waste hauler, Greenwaste of Palo Alto, (650) 493-4894. Public Works Engineering 48. PUBLIC WORKS APPLICATIONS, FORMS, AND DOCUMENTS: Applicant shall be advised that most forms, applications, and informational documents related to Public Works Engineering conditions can be found at the following link: https://www.cityofpaloalto.org/Departments/Public-Works/Engineering-Services/Forms- and-Permits 49. MODIFICATIONS TO PLANS: Approval of these plans does not include approval of a vesting tentative map. The civil sheets shall be updated accordingly to reflect this or a separate subdivision map application shall be filed. A tentative map is not required for the proposed development; however, a lot merger is required. 50. LOT MERGER REVIEW: The City contracts with a third-party surveyor that will review and provide approval of the lot merger’s technical correctness as the City Surveyor, as permitted by the Subdivision Map Act. The Public Works Department will forward a Scope & Fee Letter from the third-party surveyor, and the applicant will be responsible for payment of the fee’s indicated therein, which is based on the complexity of the lot merger. 51. STREETWORK PERMIT: The applicant shall obtain a Streetwork Permit from the Department of Public Works for all public improvements. Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 30  Packet Pg. 62 of 212  21 1 1 4 5 8 52. SPECIAL STREET LIGHT: This project is located within an area designated to have special streetlights as shown in the Special Street Light Style Placement Guide. Any new or replaced streetlights shall be installed to the standards adopted by the Public Works Department and Utility Department. https://www.paloalto.gov/files/assets/public/v/1/planning-amp- development-services/current-planning/pw-style-placement-guide-2020.pdf Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 31  Packet Pg. 63 of 212  22 1 1 4 5 8 59. GRADING AND EXCAVATION PERMIT: A Grading Permit is required per PAMC Chapter 16.28. The permit application and all applicable documents (see Section H of application) shall be submitted to Public Works Engineering. Add the following note: “THIS GRADING PERMIT WILL ONLY AUTHORIZE GENERAL GRADING AND INSTALLATION OF THE STORM DRAIN SYSTEM. OTHER BUILDING AND UTILITY IMPROVEMENTS ARE SHOWN FOR REFERENCE INFORMATION ONLY AND ARE SUBJECT TO SEPARATE BUILDING PERMIT APPROVAL.” Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 32  Packet Pg. 64 of 212  23 1 1 4 5 8 activity. A Notice of Intent (NOI) shall be filed for this project with the SWRCB in order to obtain coverage under the permit. The General Permit requires the applicant to prepare and implement a Storm Water Pollution Prevention Plan (SWPPP). The applicant is required to submit two copies of the NOI and the draft SWPPP to the Public Works Department for review and approval prior to issuance of the building permit. The SWPPP should include both permanent, post-development project design features and temporary measures employed during construction. 65. ENCROACHMENT PERMIT: Prior to any work in the public right-of-way, the applicant shall obtain an encroachment permit from the Public Works Department for any work that encroaches onto the City right-of-way. 66. LOGISTICS PLAN: A construction logistics plan shall be provided addressing all impacts to the public including, at a minimum: work hours, noticing of affected businesses, bus stop relocations, construction signage, dust control, noise control, storm water pollution prevention, job trailer, contractors’ parking, truck routes, staging, concrete pours, crane lifts, scaffolding, materials storage, pedestrian safety, safe routes to school and mitigation of construction impacts on Curtner Avenue, and traffic control. All truck routes shall conform to the City of Palo Alto’s Trucks and Truck Route Ordinance, Chapter 10.48, and the route map. The logistics plan shall be reviewed and approved by Public Works Department, who shall consult with the City's Chief Transportation Official and the Director of Planning and Development Services prior to approval. NOTE: Some items/tasks on the logistics plan may require an encroachment permit. 67. STORMWATER POLLUTION PREVENTION: All improvement plan sets shall include the “Pollution Prevention – It’s Part of the Plan” sheet. 68. C.3 THIRD-PARTY CERTIFICATION: Applicant shall provide certification from a qualified third- party reviewer that the proposed permanent storm water pollution prevention measures comply with the requirements of Provision C.3 and Palo Alto Municipal Code Chapter 16.11. Submit the following: a. Provide a stamped and signed C.3 data form (April 2024 version) from SCVURPPP. https://scvurppp.org/2024/09/19/provision-c-3-data-form-2024/ b. Final stamped and signed letter confirming which documents were reviewed and that the project complies with Provision C.3 and PAMC 16.11. 69 C.3 STORMWATER AGREEMENT: The applicant shall enter into a Stormwater Maintenance Agreement with the City to guarantee the ongoing maintenance of the permanent storm water pollution prevention measures. The City will inspect the treatment measures yearly and charge an inspection fee. The agreement shall be executed by the applicant team prior to building permit final. Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 33  Packet Pg. 65 of 212  24 1 1 4 5 8 70 C.3 FINAL THIRD PARTY CERTIFICATION PRIOR TO OCCUPANCY: Within 45 days of the installation of the required storm water treatment measures and prior to the issuance of an occupancy permit for the building, the third-party reviewer shall submit to the City a certification verifying that all the permanent storm water pollution prevention measures were installed in accordance with the approved plans. 71 PAVEMENT RESTORATION: The applicant shall restore the pavement along the entire project frontage, curb-to-curb, by performing a 3.5” grind and overlay. The exact restoration limits will be determined once the resulting road condition is known following completion of heavy construction activities and utility lateral installations, at minimum the extent will be the project frontage on Curtner Avenue. The extent of restoration required on El Camino Real shall be determined by the Public Works Department following completion of heavy construction activities and utility lateral installations 72 IMPERVIOUS SURFACE AREA: The project will be creating or replacing 500 square feet or more of impervious surface. Accordingly, the applicant shall provide calculations of the existing and proposed impervious surface areas with the building permit application. The Impervious Area Worksheet for Land Developments form and instructions are available at the Development Center or on our website. To determine the impervious surface area that is being disturbed, provide the quantity on the site plan. 73 OUTSIDE AGENCY APPROVAL: A portion of the proposed work is within Caltrans right-of- way. Evidence of Caltrans approval shall be submitted prior to issuance of City permits. 74 PRIOR TO PUBLIC WORKS FINAL/ACCEPTANCE (STORM DRAIN LOGO): The applicant is required to paint “No Dumping/Flows to Barron Creek” in blue on a white background adjacent to all onsite storm drain inlets. The name of the creek to which the proposed development drains can be obtained from Public Works Engineering. Stencils of the logo are available from the Public Works Environmental Compliance Division, which may be contacted at (650) 329-2598. Include the instruction to paint the logos on the construction grading and drainage plan. 75 PRIOR TO PUBLIC WORKS FINAL/ACCEPTANCE (RECORD DRAWINGS): At the conclusion of the project applicant shall provide digital as-built/record drawings of all improvements constructed in the public right-of-way or easements in which the City owns an interest. Urban Forestry 76. Post building permit issuance all protected trees are subject to a 14-day public notice prior to their removal. 77. URBAN FORESTRY GENERAL: The following general tree preservation measures apply to all trees to be retained: No storage of material, topsoil, vehicles or equipment shall be permitted within the Tree Protection Zone (TPZ). The ground under and around the tree Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 34  Packet Pg. 66 of 212  25 1 1 4 5 8 canopy area shall not be altered. No waste material or construction byproducts are allowed within the TPZ. Trees to be retained shall be irrigated, aerated, and maintained as necessary to ensure survival. 78. TREE DAMAGE: Tree Damage, Injury Mitigation, and Inspections apply to the Contractor. Reporting, injury mitigation measures, and arborist inspection schedule may apply pursuant to TLTM, Section 5.03.6. Contractor shall be responsible for the repair or replacement of any publicly owned or protected trees that are damaged during the course of construction, pursuant to Title 8 of the Palo Alto Municipal Code, and City of Palo Alto Tree and Landscape Technical Manual, Section 3.02. 79. TPZ EXCAVATION RESTRICTIONS APPLY - TLTM, Sec. 3.03.6 - B5,6: Any approved grading, digging, potholing, or trenching within the TPZ of a protected tree shall be performed using ‘air-spade’ method as a preference, with manual hand shovel as a backup. (TPZ= 10x the tree diameter at 54" above grade) For utility trenching, including sewer line, roots exposed with a diameter of 2 inches and greater shall remain intact and not be damaged. If directional boring method is used to tunnel beneath roots, then CPA Standard Detail #504 shall be printed on the final plans and the buffer distances in TLTM Table 3-4,Trenching and Tunneling Distance, shall be implemented by Contractor. Contractor must notify the Urban Forestry Section at (650) 496-5953 in advance of conducting any approved excavation within 10-feet of any street trees (or for any protected tree on EVSE projects). Urban Forestry may choose to monitor or review the work for compliance with the City’s Tree Protection Zone (TPZ) excavation standards. 80. TREE PROTECTION COMPLIANCE: The owner and contractor shall implement all protection and inspection schedule measures, design recommendations, and construction scheduling as stated in the Tree Preservation Report and/or T-1 Sheet Set and is subject to code compliance action pursuant to PAMC 8.10.080. The required protective fencing shall remain in place until the final landscaping or Urban Forestry inspection of the project is completed. 81. NO NET LOSS OF CANOPY: In order to comply with the City’s no net loss of canopy policy (PAMC 8.10.055; Urban Forest Master Plan Goals 6.A, 6.B, & 6.C; Comprehensive Plan, Natural Environment Chapter Goal N-2) all trees 4 inches DBH and larger are subject to replacement to avoid a loss of canopy at the neighborhood level. Replacement ratios are determined by table 3-1 in the Tree and Landscape Technical Manual, Section 3.02. New landscape tree plantings (24 inch box or larger) count towards the replacement total. Screening trees may also count toward the total depending on size and species selected. If unable to plant the required number of trees on site (our preferred solution) there is the option of paying in-lieu fees per each 24 inch box tree into the forestry fund. [Note: A replacement at ratio of 1:1 for trees listed as exempt species under PAMC 8.10.020 is recommended. Exempt trees may require full replacement on parcels zoned other than R1, RE, R-2, or RMD]. Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 35  Packet Pg. 67 of 212  26 1 1 4 5 8 82. PLAN CHANGES: Revisions and/or changes to plans before or during construction shall be reviewed and responded to by the (a) project site arborist, or (b) landscape architect with written letter of acceptance before submitting the revision to Planning and Development Services Department for review by Planning, Public Works, or Urban Forestry. 83. PLAN SET REQUIREMENTS: The final Plans submitted for a building permit shall include the location, DBH, canopy drip-line, and TPZ of all trees 4 inches DBH or greater as well as the following information and notes on relevant plan sheets: a. T-1 SHEET SET, The building permit plan set will include the City’s full-sized, T-1 Sheet Set (Tree Protection-it's Part of the Plan!), available on the Development Center website. A certified arborist shall complete and sign the Tree Disclosure Statement. b. TREE PRESERVATION REPORT (TPR), if indicated by Tree Disclosure Statement, All sheets of the Applicant’s TPR approved by the City for full implementation by Contractor, shall be printed on numbered T-1 Sheets (T-3, T-4, etc.) and added to the sheet index. c. TREE PROTECTION FENCING, The Plan Set (esp. site, demolition, grading & drainage, foundation, irrigation, tree disposition, utility sheets, etc.) must delineate/show the correct configuration of Type I, Type II or Type III fencing around each Protected Tree, using a bold dashed line enclosing the Tree Protection Zone (CPA Standard Detail #605). Fire 84. Install a NFPA 13 Fire Sprinkler System, NFPA 14 Standpipe System, NFPA 20 fire pump, NFPA 24 Fire Underground Service, NFPA 72 voice notification fire alarm system, Emergency Responder Radio Communication System and 2-way Communication System. 85. Fire sprinkler density for parking garage shall be Extra Hazard Group 2. Fire sprinkler for residential area shall be Light Hazard .1gpm/1500 sq ft. Provide Ordinary Hazard 2 fire sprinkler density in bike storage room. 86. Knox Remote Power Boxes are required for the main electrical disconnect, secondary electrical power source disconnects and 100% garage exhaust activation. 87. PAFD Hazmat site closure permit required. 88. Garage will require a manually activated smoke exhaust system for the removal of smoke/toxic fumes in the event of vehicle fires. 89. Do not install elevator shunt trip circuit breaker. Follow 2025 CBC section 3005.4.1 and install smoke detector in elevator machine room. Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 36  Packet Pg. 68 of 212  27 1 1 4 5 8 90. Install an electrical disconnect switch (EPO) for EVCE’s. 91. Install Knox key switch for Fire Department access through garage vehicle security barriers. Overhead utilities crossing Curtner Ave shall be placed underground. Watershed Protection The following comments are provided as a courtesy and these conditions of approval must be complied with before receiving a Demolition Permit for this project: 92. NOTICE OF REGULATION OF PCB MATERIAL – EFFECTIVE JULY 1st, 2019: Please be advised that requirements regarding stormwater control during building demolition for polychlorinated biphenyls (PCBs) became effective starting July 1st, 2019, in accordance with the San Francisco Bay Region Municipal Regional Stormwater NPDES Permit (MRP), Order No. R2-2015-0049. MRP Provision C.12.f. requires that San Francisco Bay Area municipalities develop a program to ensure that PCBs from building materials (e.g. caulk, paint, mastic) do not enter the storm drain system during building demolition. Palo Alto City Council adopted the PCBs regulation in May 2019. For specific questions about your project, please email CleanBay@cityofpaloalto.org, call 650-329-2122 or visit http://www.cityofpaloalto.org/pcbdemoprogram. 93. If the project is submitting a demolition permit application on or after July 1st, 2019, the applicant shall complete and submit the “PCBs Applicant Package,” including any required sampling reports (per the Applicant Package instructions), with the demolition permit application. The PCBs Application Package and other resources are outlined at http://www.cityofpaloalto.org/pcbdemoprogram. The Applicant Package will outline PCBs sampling and reporting requirements that must be met if the project meets ALL of the following conditions: a. The project is a commercial, public, institutional, or industrial structure constructed or remodeled between January 1, 1950 and December 31, 1980. Single-family and two-family homes are exempt regardless of age. b. The framing of the building contains material other than wood. Wood-frame structures are exempt. c. The proposed demolition is a complete demolition of the building. Partial demolitions do not apply to the requirements. 94. If the project triggers polychlorinated biphenyls (PCBs) sampling as identified on the “PCBs Applicant Package,” then the project shall conduct representative sampling of PCBs concentration in accordance with the “Protocol for Evaluating Priority PCBs- Containing Materials before Building Demolition (2018).” If the representative sample results or records DO NOT indicate PCB concentrations ≥50 ppm in one or more “priority materials,” then the screening assessment is complete. Applicant submits screening form and the supporting Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 37  Packet Pg. 69 of 212  28 1 1 4 5 8 sampling documentation with the demolition permit application. No additional action is required. If the representative sample results or records DO indicate PCBs concentrations ≥50 ppm in one or more “priority materials,” then the screening assessment is complete, but the Applicant MUST also contact applicable State and Federal Agencies to meet further requirements. Applicant submits screening form and the supporting sampling documentation with the demolition permit application, and also must contact the State and Federal Agencies as indicated on Page 3 of the “PCBs Screening Assessment Form.” IMPORTANT: ADVANCED APPROVAL FROM THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY (USEPA) OR OTHER STATE AGENCIES MAY BE REQUIRED PRIOR TO BUILDING DEMOLITION. IT IS RECOMMENEDED THAT APPLICANTS BEGIN THE PCBs ASSESSMENT WELL IN ADVANCE OF APPLYING FOR DEMOLITION PERMIT AS THE PROCESS CAN TAKE BETWEEN 1-3 MONTHS. 95. Requirement for oil-water separator in interior parking garage floor drains: If installed, parking garage floor drains on interior levels shall be connected to an oil-water separator prior to discharging to the sanitary sewer system. The oil-water separator shall be cleaned at a frequency of at least once every twelve (12) months or more frequently if recommended by the manufacturer or required by the Director. Installation, certification, and maintenance records shall be maintained and made available for inspection and copying as described in Section 16.09.155 of this Chapter. Oil-water separators shall have a minimum capacity of 100 gallons (PAMC 16.09.165(a)(8) and 16.09.170(a)(5)). 96. Exemption for requirements below: This requirement can be exempted if no washing is allowed on-site via rental/lease agreement, any hose bibs are to be fitted with lock-outs or other connection controls, and signage is posted indicating that car washing is not allowed (PAMC 16.09.170(a)(6)). a. Requirement for an oil-water separator for carwash area: A drain shall be installed to capture all vehicle wash waters and shall be connected to an oil- water separator prior to discharge to the sanitary sewer system. The oil-water separator shall be cleaned at a frequency of at least once every twelve(12)months or more frequently if recommended by the manufacturer or required by the Director. Oil-water separators shall have a minimum capacity of100 gallons. b. Requirement for bermed area around carwash: The area shall be graded or bermed in such a manner as to prevent the discharge of stormwater to the sanitary sewer system 97. Discharge drains for pools, spas, and fountains shall not be connected directly to the storm drain system or to the sanitary sewer system (PAMC 16.09.165(a)(7) and Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 38  Packet Pg. 70 of 212  29 1 1 4 5 8 16.09.170(a)(4)). Electrical Utilities 98. Ensure proposed location of transformers and switches have adequate space. Refer to CPAU drawings DT-SS-C-1005 for typical sizes of transformer pads, CPAU drawings DT- SS-U-1026 for typical sizes of switch pads, CPAU drawing DT-CL-U-1031 for pad mount clearance requirements. Please note that requests for account closures will be needed before electric facilities are removed for identified existing overhead and underground electric services. Water-Gas-Wastewater Utilities The following comments are required to be addressed prior to any future related permit application such as a Building Permit, Excavation and Grading Permit, Certificate of Compliance, Street Work Permit, Encroachment Permit, etc. These comments are provided as a courtesy and are not required to be addressed prior to the Planning entitlement approval: 99. The applicant is to submit flow monitoring data for the sewer connection utility impact study. The study must include, but not be limited to: flow rate data, depth of flow associated with the flow rate data, and a summary of the minimum and maximum flow rates for each flow monitor installed for a minimum monitoring period of fourteen (14) continuous days. i. Flow monitoring is to be performed downstream of the proposed connection point. No downstream overloading of the existing sewer main will be permitted. In addition, depending on the development size, the city may require the developer's architect/engineer to perform flow monitoring upstream of the proposed tie-in locations to quantify the impact of the new flows on the nearby and downstream sanitary sewer mains. The need for upstream flow monitoring will be developed on a case-by-case basis. ii. Following the APPROVED Study, should sewer main improvements be required, the developer shall prepare all construction plans and obtain all permits, and cover all costs necessary for upsizing, upgrading, or otherwise improving the public wastewater sewer system and public infrastructure to meet the proposed project's needs. The developer shall not be responsible for any marginal increase in cost associated with excess capacity requested by the City. iii. In the event that the construction plans for permitting deviate from the preliminary plans associated with the flow monitoring report, the developer’s engineer needs to submit an updated flow monitoring report to confirm development changes, changes in proposed flows, and the impact on any required sewer main with identified updates and/or changes to the required downstream sewer main improvements. Final Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 39  Packet Pg. 71 of 212  30 1 1 4 5 8 approval of constructed improvements by CPAU is required for the completed installation. CPAU reserves the right to solicit an additional study in the event of modifications to the development scope. PRIOR TO ISSUANCE OF DEMOLITION PERMIT (if required) 100. The applicant shall submit a request to disconnect utility services and remove gas meters. The utilities demo is to be processed within 10 working days after receipt of the request. The demolition permit will be issued by the building inspection division after all utility services and/or meters have been disconnected and removed. FOR BUILDING PERMIT 93. The applicant shall submit a completed water-gas-wastewater service connection application - load sheet for the City of Palo Alto Utilities. The applicant must provide all the information requested for utility service demands (water in fixture units/g.p.m., gas in b.t.u.h, and sewer in fixture units/g.p.d.). The applicant shall provide the existing (prior) loads, the new loads, and the combined/total loads (the new loads plus any existing loads to remain). 94. The applicant shall submit improvement plans for utility construction. The plans must show the size and location of all underground utilities within the development and the public right of way including meters, backflow preventers, fire service requirements, sewer mains, sewer cleanouts, sewer lift stations, and any other required utilities. Plans for new wastewater laterals and mains need to include new wastewater pipe profiles showing existing potentially conflicting utilities especially storm drain pipes, electric and communication duct banks. Existing duct banks need to be daylighted by potholing to the bottom of the duct bank to verify cross section prior to plan approval and starting lateral installation. Plans for new storm drain mains and laterals need to include profiles showing existing potential conflicts with sewer, water, and gas. 95. The applicant must show on the site plan the existence of any auxiliary water supply, (i.e. water well, gray water, recycled water, rain catchment, water storage tank, etc). 96. The applicant shall be responsible for installing and upgrading the existing utility mains and/or services, laterals as necessary to handle anticipated peak loads. This responsibility includes all costs associated with the design and construction for the installation/upgrade of the utility mains and/or services/laterals. The Developer’s financial responsibility for utility upgrades exceeding the impacts of the development shall be limited to Developer’s fair share contribution, as reasonably determined by the Utilities Department. 97. An approved reduced pressure principle assembly (RPPA backflow preventer device) is required for all existing and new water connections from Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive. The RPPA shall be installed on the owner's property and directly Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 40  Packet Pg. 72 of 212  31 1 1 4 5 8 behind the water meter within 5 feet of the property line. RPPA's for domestic service shall be lead free. Show the location of the RPPA on the plans. An approved reduced pressure detector assembly (RPDA backflow preventer device, STD. WD-12A or STD. WD-12B) is required for all existing and new fire water connections from Palo Alto Utilities to comply with requirements of California administrative code, title 17, sections 7583 through 7605 inclusive. The RPDA shall be installed on the owner's property and directly behind the City owned meter, within 5' (feet) of the property line or City Right of Way. 98. All backflow preventer devices shall be approved by the WGW engineering division. Inspection by the city inspector is required for the supply pipe between the meter and the assembly. 99. The applicant shall pay the capacity fees and connection fees associated with new utility service/s or added demand on existing services. The approved relocation of services, meters, hydrants, or other facilities will be performed at the cost of the person/entity requesting the relocation. 100. If a new water service line installation for fire system usage is required. Show the location of the new water service on the plans. The applicant shall provide to the engineering department a copy of the plans for fire system including all fire department's requirements. 101. Each unit or building shall have its own water meter shown on the plans. Each parcel shall have its own water and sewer lateral connection shown on the plans. 102. A sewer lateral per lot is required. Show the location of the new sewer lateral on the plans. A profile of the sewer lateral is required showing any possible conflicts with storm, electric/communications ductbanks or other utilities. 103. All existing water, and gas. and wastewater services/laterals that will not be reused shall be abandoned at the main per the latest WGW utilities standards by CPAU. 104. Utility vaults, transformers, utility cabinets, concrete bases, or other structures cannot be placed over existing water, gas, or wastewater mains/services. Maintain 1' horizontal clear separation from the vault/cabinet/concrete base to existing utilities as found in the field. If there is a conflict with existing utilities, Cabinets/vaults/bases shall be relocated from the plan location as needed to meet field conditions. Trees may not be planted within 10 feet of existing water, gas, and wastewater mains/laterals/water services/or meters. New water or wastewater services/laterals/meters may not be installed within 10' of existing trees. Maintain 10' between new trees and new water and wastewater services/laterals/meters. Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 41  Packet Pg. 73 of 212  32 1 1 4 5 8 105. The applicant shall provide to the WGW Utility Engineering department a copy of the plans for fire system including all fire department's requirements prior to the actual service installation. 106. All utility installations shall be in accordance with the City of Palo Alto utility standards for water, gas, & wastewater. SECTION 5. Term of Approval. 1. Architectural Review Application. In the event actual construction of the project is not commenced within two years of the Effective Date, the approval shall expire and be of no further force or effect. An extension may be granted in accordance with the allowances set forth in the municipal code and state law. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: _________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED AS TO CONTENT: ___________________________ ___________________________ Assistant City Attorney City Manager ___________________________ Director of Planning and Development Services PLANS AND DRAWINGS REFERENCED: Those plans titled “C7_3781 El Camino Real_PLANS.pdf” consisting of 76 pages, dated and submitted March 17, 2026. Item 7 Attachment B - Draft Record of Land Use Action        Item 7: Staff Report Pg. 42  Packet Pg. 74 of 212  9 9 4 8 ATTACHMENT C 3781 El Camino Real, 24PLN-00161 Table 1: COMPARISON WITH CHAPTER 18.14 (HOUSING INCENTIVES) EL CAMINO REAL FOCUS AREA FOR CN DISTRICT (18.16) PARCELS Mixed-use and Residential Development Standards Regulation Required Proposed Minimum Site Area, width and depth None No change Minimum Front Yard (El Camino Real) 0-10 feet to create an 8-12 foot effective sidewalk width (1), (2), (8) 12 feet Rear Yard None Not Applicable Interior Side Yard None 10 feet Street Side Yard (Curtner Avenue)20 feet (2) 5* ft (ECR Focus Area Allowance) 15 feet Min. yard for lot lines abutting or opposite residential districts or residential PC districts 10 feet (2)Not Applicable Build-to-lines 50% of frontage built to setback on El Camino Real 33% of side street built to setback on Curtner Avenue(7) 90% of frontage built to setbacks Max. Site Coverage 50% 80%* (ECR Focus Area Allowance) 83% Max. Building Height 25 ft and 2 stories 85* ft (ECR Focus Area Allowance) 82 ft Max. Floor Area Ratio (FAR)0.5:1 4.0* (ECR Focus Area Allowance) 3.18:1 (88,112 sf of 27,665 sf lot size) Daylight Plane for lot lines abutting one or more residential zone districts None (6)Complies (Abutting CN) Minimum Usable Open Space 100 sf per unit (7,900 sf) (ECR Focus Area Allowance) 25,756 sf Max. Residential Density 122 DU/AC with 24.5% bonus (Cal. Gov. Code 65589.5(h)(11)(C)) 152 du/acre (1) No parking or loading space, whether required or optional, shall be located in the first 10 feet adjoining the street property line of any required yard. (2) Any minimum front, street side, or interior yard shall be planted and maintained as a landscaped screen excluding areas required for access to the site. A solid wall or fence between 5 and 8 feet in height shall be constructed along any common interior lot line.. (6) The initial height and slope shall be identical to those of the most restrictive residential zone abutting the site line in question. (7) 25 foot driveway access permitted regardless of frontage, build-to requirement does not apply to CC district. (8) A 12 foot sidewalk width is required along El Camino Real frontage Item 7 Attachment C - Zoning Consistency        Item 7: Staff Report Pg. 43  Packet Pg. 75 of 212  9 9 4 8 Table 2: COMPARISON WITH CHAPTER 18.14 (HOUSING INCENTIVES) EL CAMINO REAL FOCUS AREA FOR RM-30 DISTRICT (18.13) Regulation Required Proposed Minimum/Maximum Site Area, Width and Depth 8,500 sf area, 70 foot width, 100 foot depth No Change Minimum Front Yard (Curtner Avenue) (2) 20 feet 15 feet Rear Yard 10 feet 10 feet Interior Side Yard 6 feet 8-9 feet Street Side Yard 16 feet Not Applicable Setback from major roadways [18.13.040(b)(1)(A)] 25 feet Not Applicable Max. Building Height 35 feet 85* ft (ECR Focus Area Allowance) 82 feet Side Yard Daylight Plane None Not Applicable Rear Yard Daylight Plane None Not Applicable Max. Site Coverage 40% 80% (ECR Focus Area Allowance) 83% Max. Residential Density 122 DU/AC with 24.5% bonus (Cal. Gov. Code 65589.5(h)(11)(C)) 152 du/acre Max. Total Floor Area Ratio 0.6:1 4.0* (ECR Focus Area Allowance) 3.26:1 (115,100 sf of 35,360 sf lot size) Minimum Site Open Space 30% 17% Minimum Usable Open Space 150 sf per unit (15,600 sf) 100 sf per unit (10,400 sf) (ECR Focus Area Allowance) 25,756 sf Minimum Common Open Space 75 sf per unit (7,800 sf)4,285 sf Minimum Private Open Space 50 sf per unit (5,200 sf)7,152 sf Table 5: CONFORMANCE WITH CHAPTER 18.52 (Off-Street Parking and Loading) for Multiple Family Residential* Type Required Proposed Vehicle Parking 1 per unit (183 units) = 183 spaces (ECR Focus Area Allowance) 215 spaces (36 tandem) Bicycle Parking 1 per unit long term (183) 1 per 10 units short term (18) 144 long term 4 short term Loading Space 1 required for more than 50 units 0 provided Item 7 Attachment C - Zoning Consistency        Item 7: Staff Report Pg. 44  Packet Pg. 76 of 212  City of Palo Alto - Objective Design Standards Checklist Page 1 Objective Design Standards Checklist The Objective Design Standards Checklist is a tool to evaluate a project’s compliance with the Zoning Ordinance (Chapter 18.24). The Checklist is not the Zoning Ordinance. Applicants shall be responsible for meeting the standards in the Zoning Ordinance. To simplify evaluation of the Zoning Ordinance, language in the Checklist may vary from the Zoning Ordinance. (Note: sf = square feet) If a standard is not applicable to applicant’s project, please write N/A in Applicant’s Justification column. 18.24.020 Public Realm/Sidewalk Character Check Standard Sheet #Notes (b)(1) Sidewalk Widths (A) In the following districts, public sidewalk width (curb to back of walk) is at least: Commercial Mixed-Use District: CN, CS, CC, CC(2), CD-C, CD-S, CD-N, PTOD: 10 ft El Camino Real: 12 ft San Antonio Road, from Middlefield Road to East Charleston Road: 12 ft And consists of: AP1.00 Complies. 4 feet 2 inches foot Public Access Easement on El Camino Real – to create an effective 12- foot sidewalk Pedestrian clear path width of 8 foot minimum: 12 feet ☐ Landscape or furniture area width of 2 foot minimum: 4 feet ☐ If the existing public sidewalk does not meet the minimum standard, a publicly accessible extension of the sidewalk, with corresponding public access easement, shall be provided. ☐ (B) Public sidewalks or walkways connecting through a development parcel (e.g. on a through lot with a public access easement, leading to a commercial entry) must be at least 6 feet wide. (C) The width of walkways designed to provide bicycle access (e.g. pathway to bike racks/lockers) must be at least 12 feet wide, consisting of: AP1.00 Complies. 4 feet 2 inches foot Public Access Easement on El Camino Real – to create an effective 12- foot sidewalk ☒ Pedestrian clear path width (8 feet min.): 8 ft Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 45  Packet Pg. 77 of 212  City of Palo Alto - Objective Design Standards Checklist Page 2 Clear space/buffer – (2 feet min. on each side of path, ground cover is allowed): 4 feet and 6.5 feet Check Standard Sheet #Applicant’s Justification (B)(2) Street Trees 1. One street tree provided for every 30 linear feet of public sidewalk length and located within six feet of the sidewalk. L1 Does not comply. While the project proposes 5 new street trees with the existing 4 trees, it does not meet the required 16 trees. a. Length of parcel frontage/public sidewalk length: 190 ft (El Camino Real); 270 ft (Curtner Ave) b. Street Trees required (i.e. frontage/30 feet): 6 Trees (El Camino Real); 9 trees (Curtner Ave) = 16 trees total ☒ c. Street Trees provided: 9 trees (4 existing + 5 new) (B)(3) Accent Paving Parcels abutting University Avenue between Alma Street and Webster include accent paving along the project frontages, as indicated below: N/A Brick paving at corners ☐ Brick trim mid-block ☐Parcel abutting California Avenue between El Camino Real and Park Blvd include decorative glass accent paving along project frontages (B)(4) Mobility Infrastructure ☒ (A) On-site micromobility infrastructure (e.g. bike racks/lockers) is located within 30 feet of the primary building entry and/or on a path leading to the primary building entry; OR AP1.00 Complies Pi c k O n e ☐Existing micromobility infrastructure (e.g. bike racks/lockers) is already located within 50 feet of project site and located in a public right-of-way. Pi c k On e ☒(B) Primary building entries shall provide at least one seating area or bench within 30 feet of building entry and/or path leading to building entry. On AP2.01 Complies Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 46  Packet Pg. 78 of 212  City of Palo Alto - Objective Design Standards Checklist Page 3 (A) arterials (see Map T-5), except Downtown, seating areas or benches shall not be located between the sidewalk and the curb; OR ☐Existing seating areas or benches that are already located in the public right-of-way within 50 feet of the building entry. 18.24.030 Site Access Check Standard Sheet #Applicant’s Justification (b)(1) Through Lot Connections ☐ Through lots located more than 300 feet from an intersecting street or pedestrian walkway shall provide a publicly accessible sidewalk or pedestrian walkway (with public access easements) connecting the two streets. N/A (b)(2) Building Entries ☒ Primary Building Entries shall be located from a public right-of-way. If there is no public right-of-way adjacent to the building, entries shall be located from a private street or Pedestrian Walkway. AP1.00 AP2.01 Complies (b)(3) Vehicle Access ☒(A) Vehicle access shall be located on alleys or side streets when they abut the property. AP1.00 AP2.01 Complies ☒ (B) Except for driveway access and short-term loading spaces (e.g. taxi), off-street parking, off-street vehicle loading (delivery trucks), and vehicular circulation areas are prohibited between the building and primary building frontage. AP1.00 AP2.01 Complies (b)(4) Loading Docks and Service Areas Loading and service areas shall be integrated into building and landscape design and located to minimize impact on the pedestrian experience as follows: AP1.00 AP2.01 Complies ☐(A) Loading docks and service areas shall be located on façades that do not face a primary building frontage Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 47  Packet Pg. 79 of 212  City of Palo Alto - Objective Design Standards Checklist Page 4 ☐ (B) Loading docks and service areas located within setback areas shall be screened by a solid fence, or wall, or dense landscaping and separated from pedestrian access to the primary building entry to avoid impeding pedestrian movement/safety. 18.24.040 Building Orientation and Setbacks Check Standard Sheet #Applicant’s Justification (b)(1) Building Corner Elements (less than 40 feet in height) Corner buildings less than 40 feet in height and end units of townhouses or other attached housing products that face the street shall include all of the following features on their secondary building frontage: (A) height and width of corner element shall have a ratio greater than 1.2:1. For townhomes, the width would be equal to the smaller side of one unit?Building above 40 feet a. Secondary building frontage height: _____ feet b. Secondary building frontage length: _____ feet ☐ c. Secondary building frontage height to width ratio: ___ (B) minimum of 15% fenestration area. a. Total secondary building frontage façade area: ___ sf b. Secondary building frontage façade fenestration area: ___ sf☐ c. Percent of fenestration area _____ % Ch e c k A l l ☐(C) At least one facade modulation with a minimum depth of 18 inches and a minimum width of two feet. (b)(2)(A) & (B) Treatment of Buildings Corners on Corner Lots (40+ feet in height) Corner Buildings 40 feet or taller in height shall include at least one of the following special features: Ch e c k On e o r Mo r e wi t h i n A or B A. Street wall is located at the minimum front yard setback or build-to line for a minimum aggregated length of 40 feet on both facades meeting at the corner and includes one or more of the following building features: Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 48  Packet Pg. 80 of 212  City of Palo Alto - Objective Design Standards Checklist Page 5 ☒i. An entry to ground floor retail or primary building entrance located within 25 feet of the corner of the building. AP1.00 AP2.01 Complies ☒ii. A different material application and/or fenestration pattern from the rest of the façade. AP3.00 AP3.01 Complies ☐iii. A change in height of at least 4 feet greater or less than the height of the adjacent/abutting primary façade. B. An open space with a minimum dimension of 20 feet and minimum area of 450 sf. The open space shall be at least one of the following ☐i. A publicly accessible open space/plaza. ☐ii. A space used for outdoor seating for public dining. Ch e c k O n e o r Mo r e w i t h i n A o r B ☐ iii. A residential Common Open Space adjacent to a common interior space (i.e. lobby, retail, etc.) and less than two feet above adjacent sidewalk grade. Fences and railing shall be a minimum 50% open/transparent. (b)(3) Primary Building Entry The primary building entry meets at least one of the following standards: ☒A. Faces a public right-of-way.AP3.00 AP3.01 Complies ☒B. Faces a publicly accessible pedestrian walkway.AP3.00 AP3.01 Complies C. Is visible from a public right-of-way through a forecourt or front porch that meets the following standards: i. For residential buildings with fewer than seven units, building entry forecourts or front porch minimum dimensions of (min. 36 sf and min. dimension of 6 feet required): ___ sf and ___ ft. min. dimension Ch e c k O n e o r M o r e ☐ii. For commercial buildings or residential buildings with seven or more units, building entry forecourts or front porch minimum dimensions of (min. 100 sf and a min. width of 8 feet required): ___ sf and ___ ft. min. width (b)(4) Ground Floor Residential Units A. Finished Floor Height for Ground Floor Units Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 49  Packet Pg. 81 of 212  City of Palo Alto - Objective Design Standards Checklist Page 5 Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 50  Packet Pg. 82 of 212  City of Palo Alto - Objective Design Standards Checklist Page 6 ☐The finished floor of ground floor residential units, when adjacent to a public right-of- way, must be within the minimum and maximum heights according to setback distance from back of walk identified in Figure 2a and 2b of the Zoning Ordinance. Calculate minimum ground floor finished floor height: AP2.01 No ground floor units ☐Setback adjacent to public right of way: ☐ Minimum ground floor finished floor height: _____ feet 𝒚 = ― 𝟒 𝟏𝟓(𝒙)+ 𝟏𝟔 𝟑 where 𝑥 = setback length from back of walk, in feet and 𝑦 = ground floor finished floor height, in feet ☐Sites with slopes greater than 2% along building façade – Average height of finished floor: _____ feet Ch e c k A l l t h a t A p p l y ☒Sites located in flood zones – the minimum ground floor finished floor height shall be defined by FEMA, less flood zone elevation: ____ feet B. Setback Trees Ground floor units with a setback greater than 15 feet must have at minimum an average of one tree per 40 linear feet of facade length, within the setback area. AP2.01 No ground floor units Facade length: Trees required: tree(s) (i.e. façade length / 40) ☐ Trees provided: tree(s) C and D. Front Setback ☐C. Ground floor residential entries are setback a minimum of 10 feet from the back of public sidewalk; OR AP2.01 No ground floor units Pi c k O n e ☐ D. Where no minimum building setback is required, all ground floor residential units must be set back a minimum 5 feet from back of public sidewalk. Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 51  Packet Pg. 83 of 212  City of Palo Alto - Objective Design Standards Checklist Page 7 Check Standard Sheet #Applicant’s Justification E. Unit Entry A minimum 80% of ground floor residential units that face a public right-of-way or publicly accessible path, or open space shall have a unit entry with direct access to the sidewalk, path, or open space for minimum. AP2.01 No ground floor units a. Total number of ground floor residential units facing a public right-of-way, publicly accessible path, or open space:____units b. 80% of total units in (a): ___units ☐ c. Subset of number of units in (a) that have a unit entry with direct access to the sidewalk, path, or open space: ____entries (b)(5) Front Yard Setback Character Required setbacks provide a hardscape and/or landscaped area to create a transition between public and private space. The following standards apply, based on intended use and exclusive of areas devoted to outdoor seating, front porches, door swing of building entries, and publicly accessible open space and meet the following: (A). Ground-floor retail or retail like uses have a minimum of 10% of the required setback as landscape or planters.N/A i. Minimum setback area (setback x frontage x 10%): ____ sf☐ ii. Landscape or planter area in required setback: ____ sf (B). Ground-floor residential uses have a minimum of 60% landscaped area in the required setback area. i. Minimum setback area (setback x frontage x 60%): Ch e c k A l l t h a t A p p l y ☐ ii. Landscape area in required setback: Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 52  Packet Pg. 84 of 212  City of Palo Alto - Objective Design Standards Checklist Page 7 Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 53  Packet Pg. 85 of 212  City of Palo Alto - Objective Design Standards Checklist Page 8 (b)(6) Side Yard Setback Character ☐ (A) Each detached dwelling unit shall have at least one usable side yard, at least six feet wide, between the house and fence or other structure, to provide outdoor passage between the front and rear yards. N/A 18.24.050 Building Massing Check Standard Sheet #Notes (b)(1) Upper Floor Step Backs and Daylight Planes (A) When the height of the subject building is more than 20 feet above the average height (i.e. average of low and high roof elevations) of an adjacent building(s), an upper floor step back shall start within two vertical feet of the average height of the adjacent building. The step back shall be a minimum depth of six feet along both the façade on the primary building frontage and the façade facing the adjacent building, and the step shall occur for a minimum of 70% of each façade length. AP2.03 Stepbacks occur on floor three (24 feet). However, the full 6 feet in depth is not provided for a minimum of 70% of the façade length. It is worth noting that in some areas more than the 6 feet stepback is provided. i. Proposed building height: 82 feet ii. Average building height of the adjacent building(s): 33.75 feet ☒ iii. Building height where upper floor step back begins: 24 feet ☐(B) Notwithstanding, subsection (A), when adjacent to a single-story building, the upper floor step back shall occur between 33 and 37 feet in height. ☒ (C) If a project meets the following criteria, a daylight plane with an initial height of 25 feet above grade at the property line and a 45-degree angle shall be required. This daylight plane is required if all of these criteria are met: i. The project is not subject to a daylight plane requirement, pursuant to district regulations in Title 18; and ii. The project proposes a building which is more than 20 feet above the average height (i.e., average of low and high roof elevations) of an adjacent building(s); and iii. The project abuts residential units in the side or rear yard. AP3.00 AP3.01 AP3.02 AP3.03 The building does not comply with daylight planes. Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 54  Packet Pg. 86 of 212  City of Palo Alto - Objective Design Standards Checklist Page 9 (b)(2) Privacy and Transitions to Residential Uses When a building abuts a residential use on an interior side and/or rear property line, the building shall break down the abutting façade and maintain privacy by meeting all of the following: ☒ (A) Landscape Screening. A landscape screen that includes a row of trees with a minimum one tree per 25 linear feet and continuous shrubbery planting. This screening plant material shall be a minimum 72 inches (6 feet) in height when planted. Required trees shall be minimum 24” box size. AP1.00 AP2.01 Complies ☒(B) Façade Breaks. A minimum façade break of 4 feet in width, 2 feet in depth, and 32 sf of area (i.e. 8 ft tall minimum) for every 36 to 40 feet of façade length AP3.01 AP3.02 AP3.03 Complies ☒ (C) Maximum Amount of Transparent Windows. Within 40 feet of an abutting structure, no more than 15% of the facing façade area shall be windows or other glazing. Additional windows are allowed in order to maintain light, if fixed and fully obscured AP3.01 AP3.02 AP3.03 Complies (D) Windows. Within 30 feet of facing residential windows (except garage or common space windows) or private open space on an adjacent residential building, facing windows on the subject site shall meet the following: (i) Window sills at and above the 2nd floor shall be at least five feet above finished floor; or (ii) Windows shall have opaque or translucent glazing at or below five feet above finished floor; or (iii) Windows shall be angled up to 30 degrees (parallel to window) to face away from the adjacent privacy impacts; and (iv) Landscape screening shall be 24-inch box size or larger and eight+ feet height at planting; 50% evergreens; and located to align with proposed second floor windows at maturity. AP3.01 AP3.02 AP3.03 CompliesCh e c k A l l (E). Balconies: Within 30 feet of residential windows (except garage or common space windows) or private open space on an adjacent residential building, balconies and decks on the subject site shall be designed to prevent views: (i) No sight lines to the adjacent property window or open space are permitted within five feet above the balcony or deck flooring and a 45- degree angle downward from balcony railing. (ii) Submit section view of proposed balcony/deck and abutting residential AP3.01 AP3.02 AP3.03 Complies Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 55  Packet Pg. 87 of 212  City of Palo Alto - Objective Design Standards Checklist Page 10 windows and/or private open space. (iii) Provide balcony/deck design measure which may include: a. Minimum 85% solid railing b. Obscure glass railing c. Barrier with min. 18" horizontal depth from railing (e.g. planter) (b)(3)(A) & (B) Maximum Façade Length - facing a street or public path Buildings 70 feet in length or greater and greater than 25 feet in height For building facades 70 feet in length or greater and facing a public street, right- of-way, or publicly accessible path shall not have a continuous façade plane greater than 70% of the façade length without an upper floor modulation, of at least 2 feet in depth Not Applicable (see below for buildings between 150 feet and 250 feet in length) Largest façade length featuring continuous plane: Total Façade length: ☐ Percent of façade length without upper floor modulation (a/b) (maximum 70%): Buildings 250 feet in length or greater (A) Buildings 250 feet in length or greater, which face a public street, right-of- way, or publicly accessible path, shall have at least one vertical façade break with a minimum area greater than 400 sf and a width greater than or equal to two times the depth Not Applicable (see below for buildings between 150 feet and 250 feet in length) Total Building length: ☐ Number of vertical façade breaks: Width: 42 feet, Depth: 8 feet, Area: Buildings between 150 feet and 250 feet in length (B) Buildings 150 to 250 feet in length, which face a public street, right-of-way, or publicly accessible path, shall have at least one vertical façade break with a minimum area greater than 64 sf and a minimum width of 8 feet and minimum depth of 4 feet. Pi c k O n e C a t e g o r y ☒ Total Building length: 158 feet Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 56  Packet Pg. 88 of 212  City of Palo Alto - Objective Design Standards Checklist Page 11 Number of vertical façade breaks: 3 Width: 10 feet, depth 6 feet, area 60 sf Width: 10 feet, depth 5 feet, area 50 sf Width: 20 feet, depth 6 feet, area 120 sf = total 230 sf AP2.03 AP3.01 AP3.02 AP3.03 Complies Check Standard Sheet #Applicant’s Justification (b)(4) Special Conditions: Railroad Frontages All parcels with lot lines abutting railroad rights-of-way shall meet the following standards on the railroad-abutting façade(s):N/A ☐(A) A minimum facade break of at least 10 feet in width and six feet in depth for every 60 feet of façade length. Ch e c k Al l ☐(B) For portions of a building 20 feet or greater in height shall not have a continuous façade length that exceeds 60 feet. (b)(5) Diversity of Housing Types ☒ A diversity of housing types (e.g. detached units, attached rowhouses/townhouses, condominiums or apartments, mixed use) are required for projects on large lots: Less than one acre lots: minimum 1 housing types 1 to 2-acre lots: minimum 2 housing types; or More than 2-acre lots: minimum 3 housing types Does not Comply. 1.5 acre lot with 1 housing type (apartments) proposed 18.24.060 Façade Design Check Two or More Standard Sheet #Applicant’s Justification (c)(1) Base-Middle-Top ☒ Buildings three stories or taller and on lots wider than 50 feet shall be designed to differentiate a defined base or ground floor, a middle or body, and a top, cornice, or parapet cap. Each of these elements shall be distinguished from one another for a minimum of 80% of the façade length through use of three or more of the following four techniques: Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 57  Packet Pg. 89 of 212  City of Palo Alto - Objective Design Standards Checklist Page 11 Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 58  Packet Pg. 90 of 212  City of Palo Alto - Objective Design Standards Checklist Page 12 ☐ i. Variation in Building Modulation: Building modulation shall extend for a minimum 80% of the façade length feet, and shall include one or more of the following building features. ☒a. Horizontal shifts. Changes in floor plates that protrude and/or recess with a minimum dimension of 2 feet from the primary facade. AP3.01 AP3.02 AP3.03 Complies ☐ b. Upper floor step backs. A horizontal step back of upper-floor façades with a minimum 5 foot stepback from the primary façade for a minimum of 80% of the length of the façade Ch e c k o n e o r m o r e i f se l e c t e d ☒ c. Ground floor step back. A horizontal shift of the ground floor facade with a minimum depth of 2 feet for a minimum 80% of the length of the façade. Ground floor step backs shall not exceed the maximum setback, where stated AP1.00 ☒ii. Variation in Façade Articulation: Façade articulation modulation shall include one or more of the following building features.Complies ☒ a. Horizontal and/or Vertical Recesses or Projections. Recesses or projections such as a pattern of recessed grouping of windows, recessed panels, bay windows or similar strategies. The recess or projection shall be a minimum 4 inches in depth. AP3.00 AP3.01 AP3.02 AP3.03 ☒ b. Horizontal and/or Vertical Projections. Projections such as shading, weather protection devices, decorative architectural details, or similar strategies. AP3.00 AP3.01 AP3.02 AP3.03 Ch e c k o n e o r m o r e i f se l e c t e d ☐ c. Datum Lines. Datum lines that continue the length of the building, such as parapets or cornices, with a minimum 4 inches in height or a minimum 2 inches in depth and include a change in material ☒iii. Variation in two of the following: AP3.00 AP3.01 AP3.02 AP3.03 Complies C h e c k t w o i f s e l e c t e d☒a. Fenestration Size Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 59  Packet Pg. 91 of 212  City of Palo Alto - Objective Design Standards Checklist Page 13 ☒b. Fenestration Proportion ☒c. Fenestration Pattern ☐d. Fenestration Depth or Projection ☒iv. Variation in two of the following: AP3.00 AP3.01 AP3.02 AP3.03 Complies ☒a. Façade Material ☒b. Facade Material Size ☐c. Façade Texture and Pattern Ch e c k t w o i f se l e c t e d ☒d. Façade Color (c)(2) Façade Composition Building facades shall use a variety of strategies including building modulation, fenestration, and façade articulation to create visual interest and express a variety of scales through a variety of strategies. All facades shall include a minimum of three of the following façade articulation strategies to create visual interest: ☒A. Vertical and horizontal recesses such as a pattern of recessed grouping of windows or recessed panels. The recess shall be a minimum 4 inches in depth. AP3.00 AP3.01 AP3.02 AP3.03 Complies ☒B. Vertical and horizontal projections such as shading and weather protection devices or decorative architectural details. Projections shall be a minimum 4 inches in depth. ☒ C. Datum lines that continue the length of the building, such as cornices, with a minimum 4 inches in depth, or a minimum 2 inches in depth and include a change in material. ☒D. Balconies, habitable projections, or Juliet balconies (every 20 to 40 feet) with a minimum 4 inches in depth. ☒E. Screening devices such as lattices, louvers, shading devices, or perforated metal screens. Ch e c k T h r e e o r M o r e ☐F. Use of fine-grained building materials, such as brick or wood shingles, not to exceed 8 inches in either height or width. Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 60  Packet Pg. 92 of 212  City of Palo Alto - Objective Design Standards Checklist Page 14 ☒G. Incorporate a minimum of three colors, materials, and/or textures across the whole building. (c)(3) Compatible Rhythm and Pattern (A) Buildings shall express a vertical rhythm and pattern that reflects the size and scale of a housing unit and/or individual rooms and spaces. This may be achieved with building modulation to create vertically oriented façades (height greater than the width of the façade), façade articulation and fenestration repetitive vertically oriented patterns. Depending on the length of the façade, the following standards apply: ☐ i. For continuous façades less than 100 feet in length, the façade shall have vertically oriented patterns of vertical recesses or projections, façade articulation, and/or fenestration. ii. For continuous façades 100 feet or greater in length, the façade shall include either: ☒ a. A vertical recess or change in façade plane with a minimum 2 feet deep vertical shift modulation for a minimum 4 feet in width to establish a vertical rhythm between 20 to 50 feet in width; OR AP3.00 AP3.01 AP3.02 AP3.03 Complies Ch e c k O n e ☐b. A vertical recess or projection with a minimum depth of 2 feet that establishes the vertical rhythm between 10 to 16 feet in width (B) Residential mixed-use buildings ☐i. Vertical Patterns and Modulation: Façades shall use vertical patterns of building modulation, façade articulation, and fenestration. Ch e c k O n e o r Mo r e ☐ ii. Horizontal Patterns and Modulation: Façades that use horizontal articulation and fenestration patterns shall use a vertical massing strategy with a minimum 4 feet wide and 2 feet deep vertical shift in modulation at least once every 50 feet of façade length. (C) Storefronts ☐Storefront uses must express a vertical rhythm not to exceed 30 to 50 feet in width. (c)(4) Emphasize Building Elements & Massing (A)(i) Building Entries within Façade Design. Primary building entries shall be scaled proportionally to the number of people served (amount of floor-area or number of units accessed). Building entries shall meet the following minimum dimensions: C h e c k A ll☐a. Individual residential entries: Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 61  Packet Pg. 93 of 212  City of Palo Alto - Objective Design Standards Checklist Page 15 ☒b. Shared residential entry, such as mixed-use buildings: AP3.00 AP3.01 Complies ☐c. Commercial building entry: ☐d. Storefront entry: (ii) Primary building entries (not inclusive of individual residential entries) shall include a façade modulation that includes at least one of the following: ☐a. Recess or projection from the primary façade plane (minimum 2 feet). Ch e c k On e o r Mo r e ☒b. Weather protection that is a minimum 4 feet wide and 4 feet deep by recessing the entry, providing an awning or using a combination of these methods AP3.00 AP3.01 Complies (c)(5) Storefront/Retail Ground Floors A. Ground floor height shall be a minimum 14 feet floor-to-floor OR shall maintain a 2nd floor datum line of an abutting building. AP3.00 AP3.01 Complies a. Ground floor height (minimum 14 feet): 15 feet; OR☒ b. Height of 2nd floor datum line of abutting building: B. Transparency shall include a minimum 60% transparent glazing between 2 and 10 feet in height from sidewalk, providing unobstructed views into the commercial space. a. Façade area between 2 feet and 10 feet: b. Transparent glazing area between 2 feet and 10 feet: ☐ c. Percentage of transparent glazing (minimum 60%): ☐C. If provided, bulkheads and solid base walls measure between 12 and 30 inches from finished grade D. Primary entries shall include weather protection by recessing the entry, providing an awning or using a combination of these methods. a. Weather protection width (minimum 6 feet): 20 feet AP3.00 AP3.01 Complies☒ b. Weather protection depth (minimum 4 feet): 4 feet AP3.00 AP3.01 ☒ E. Awnings, canopies and weather protection: (i) When transom windows are above display windows, awnings, canopies and similar, weather protection elements shall be installed between transom and display windows. These elements should allow for light to AP3.00 AP3.01 Complies Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 62  Packet Pg. 94 of 212  City of Palo Alto - Objective Design Standards Checklist Page 16 enter the storefront through the transom windows and allow the weather protection feature to shade the display window. (ii) Awnings may be fixed or retractable (c)(6) Other Non-Residential Ground Floors ☐(A) Ground floor height must be a minimum 14 feet floor-to-floor OR match the 2nd floor datum line of an abutting building N/A ☐Ground floor height (minimum 14 feet): _____ feet; OR Pi c k On e ☐Height of 2nd floor datum line of abutting building: (B) Minimum of 50% transparent glazing between 4 and 10 feet in height from sidewalk or terrace grade, providing unobstructed views into the commercial space Façade area between 2 feet and 10 feet: Transparent glazing area: ☐ Percentage of transparent glazing (minimum 50%): (C) Primary entries include weather protection that is a minimum 6 feet wide and 4 feet deep by recessing the entry, providing an awning or using a combination of these methods. Weather protection width (minimum 6 feet): ☐ Weather protection depth (minimum 4 feet): (c)(7) Parking/Loading/Utilities (A) Entry Size No more than 25% of the site frontage facing a street shall be devoted to garage openings, carports, surface parking, loading entries, or utilities access. On sites with less than 100 feet of frontage, no more than 25 feet. AP3.00 AP3.01 Complies Site frontage: 234 feet Curtner Avenue Frontage devoted to garage openings, carports, surface parking, loading entries, or utilities access: 11 % ( 26 feet) ☒ Percent of frontage devoted to garage openings, carports, surface parking, loading entries, or utilities access 11% (B) Above Ground Structured Parking ☒ Above grade structured parking levels facing a public right-of-way or publicly accessible open space/path, with the exception of vehicular alleys, must be lined with commercial or habitable uses with a minimum depth of 20 feet AP3.00 AP3.01 Complies Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 63  Packet Pg. 95 of 212  City of Palo Alto - Objective Design Standards Checklist Page 17 (C)&(D) Partially Sub-Grade Structured Parking ☐Partially sub-grade parking must not have an exposed façade that exceeds 5 feet in height above abutting grade at back of sidewalk. N/A ☐Partially sub-grade parking must be screened with continuous landscaping and shrubbery with minimum height of 3 feet and be located within 10 feet of the sub-grade parking. 18.24.080 Open Space Check Standard Sheet #Applicant’s Justification (b)(1) Private Open Space ☒ (A) Floor area includes clear space with a minimum dimension of a circle with a six- foot diameter. Does not comply. Some of the units with balconies can not have a clear space with a minimum dimension of a circle with a 6 foot diameter. However, the total open space amount exceeds the requirement for the site. ☒(B) Minimum clear height dimension of 8’-6” feet. Complies ☒(C) Directly accessible from a residential unit.Complies ☐(C) Balconies are not located within the daylight plane. (b)(1)(E) Private Open Space - Ground Floor Patios ☐ (i) RM-20 and RM-30 districts: Minimum 100 sf of area, the least dimension of which is 8 feet for at least 75% of the area. ☐ (ii) RM-40 districts: Minimum 80 sf of area, the least dimension of which is 6 feet for at least 75% of the area ☐(iii) Street facing private open space on the ground floor shall meet the finished floor height for ground floor residential standards in section 18.24.040(b)(4) Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 64  Packet Pg. 96 of 212  City of Palo Alto - Objective Design Standards Checklist Page 18 (b)(2) Common Open Space ☒ (A)&(B) Minimum 200 sf of area. Area shall include a space with a minimum dimension of a circle with a 10-foot diameter. AP2.03 AP2.07 Complies ☒ (C) A minimum of 60% of the area shall be open to the sky and free of permanent weather protection or encroachments. Trellises and similar open-air features allowed AP2.03 AP2.07 ☒ (D) Notwithstanding subsection (1), courtyards enclosed on four sides shall have a minimum dimension of 40 feet and have a minimum courtyard width to building height ratio of 1:1.25 AP2.03 AP2.07 ☒(E) Common open space provides seating. AP2.03 AP2.07 ☒(F) Common open space has a minimum 20% of landscaping. AP2.03 AP2.07 ☒ (G) Planting in above grade courtyards has minimum soil depth of 12 inches for ground cover, 20 inches for shrubs, and 36 inches for trees. 18.24.090 Materials Check Standard Sheet #Applicant’s Justification ☒ (b)(1) Primary, secondary, and accent materials are allowed or prohibited as in the Residential and Residential Mixed-use Material List, which may be updated from time to time by the Director of Planning with a recommendation by the ARB. See webpage for list - https://www.cityofpaloalto.org/News-Articles/Planning-and-Development- Services/Multifamily-Mixed-Use-Objective-Standards Materials Comply 18.24.100 Sustainability and Green Building Code Check Standard Sheet #Applicant’s Justification Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 65  Packet Pg. 97 of 212  City of Palo Alto - Objective Design Standards Checklist Page 19 ☒ (b) See Chapter 16.14: California Green Building Standards additional requirements for green building and sustainable design. Notwithstanding Section 18.24.010(c), these regulations may not be modified through alternative compliance. Project is conditioned to comply with Calgreen Tier 2. Item 7 ​Attachment D - Objective Standards Consistency Analysis        Item 7: Staff Report Pg. 66  Packet Pg. 98 of 212  From:Michelle Lin To:Switzer, Steven Subject:Re: Questions application #: 24PLN-00161 Date:Friday, March 28, 2025 10:27:37 AM Attachments:image001.png image002.png CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. Hi Steven, Yes, please add me to the update of 3781 El Camino Real email loops. Have a nice weekend! Thanks, Michelle On Wed, Mar 19, 2025 at 8:20 AM Switzer, Steven <Steven.Switzer@cityofpaloalto.org> wrote: Hi Michelle- There is no scheduled meeting time. You can keep up to date with the project’s webpage at the following link: 3781 El Camino Real – City of Palo Alto, CA We don’t have an automated email, but I can add your name to a list to update as the project moves through the review process. Steven Switzer Historic Preservation Planner Planning and Development Services Department 650-329-2321 | Steven.Switzer@CityofPaloAlto.org www.cityofpaloalto.org Item 7 Attachment E - Public Comments        Item 7: Staff Report Pg. 67  Packet Pg. 99 of 212  From: Michelle Lin <alimus1123@gmail.com> Sent: Thursday, March 13, 2025 8:57 PM To: Switzer, Steven <Steven.Switzer@CityofPaloAlto.org> Subject: Re: Questions application #: 24PLN-00161 CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. Hi Steven, Thanks for the information. It's very clear. I have two more questions as follows. 1) When is the hearing time? Can we find the schedule online? 2) Is it possible to sign up for an update like a newsletter for this property? Thanks, Michelle On Wed, Mar 5, 2025 at 8:34 AM Switzer, Steven <Steven.Switzer@cityofpaloalto.org> wrote: Hi Michelle- The project is still under review. Construction for the project would not occur anytime soon. The project would need to complete its planning entitlements and environmental review before any construction could start. Item 7 Attachment E - Public Comments        Item 7: Staff Report Pg. 68  Packet Pg. 100 of 212  Below are some directions to view the project plans online and see status updates : 1. Go to: https://paloalto.buildingeye.com/planning 2. Search for “3781 El Camino” and open record by clicking on the green dot. You will need to select the application # 25PLN-00161. 3. Review the record details on the left side. There you will see a status updates section. 4. To review the plans open the “more details” option. 5. Use the “Records Info” drop down menu and select “Attachments” 6. Open the attachment named “C4_3781 ECR_PLANNING SET_PLANS.pdf” and dated 2/10/2025 to review the plan set. Steven Switzer Historic Preservation Planner Planning and Development Services Department 650-329-2321 | Steven.Switzer@CityofPaloAlto.org www.cityofpaloalto.org From: Michelle Lin <alimus1123@gmail.com> Sent: Friday, February 28, 2025 8:11 AM To: Switzer, Steven <Steven.Switzer@CityofPaloAlto.org> Subject: Questions application #: 24PLN-00161 CAUTION: This email originated from outside of the organization. Be Item 7 Attachment E - Public Comments        Item 7: Staff Report Pg. 69  Packet Pg. 101 of 212  Hi Steven, I'm a tenant on Curtner Ave. I'm wondering how the progress is now for the 3781 El Camino Real project since my family plans to move to another location before all the construction starts. And where can I see the update status for this planning development? Thanks, Michelle Item 7 Attachment E - Public Comments        Item 7: Staff Report Pg. 70  Packet Pg. 102 of 212  From:Kenneth Streib To:Switzer, Steven Subject:Re: 400 Curtner --- 3781 El Camino Real (24PLN-00161) Date:Tuesday, July 2, 2024 9:06:36 PM Attachments:image002.png image001.png image004.png CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. You hae indicted a parking space to unit ratio of about 1.14 or so. It seems many renters around here are couples and both work so at LEAST two cars per unit. Lots of single renters will have two cars, and there might be couples with three cars. This is all evidenced by the fact that there is NO street parking on Curtner. Thanks, Ken Streib On Friday, June 28, 2024 at 03:40:43 PM PDT, Switzer, Steven <steven.switzer@cityofpaloalto.org> wrote: I am the project planner –feel free to send the comments to me. Once we get further along in the review process the project may be scheduled for public hearing at which time I can provide you information on how to attend/ participate in said meetings. We are in the very early stages of review. The application submittal may require revisions in response to varying City Department comments on the project. Once I have more information, I would be happy to share it with you. Steven Switzer Historic Preservation Planner Item 7 Attachment E - Public Comments        Item 7: Staff Report Pg. 71  Packet Pg. 103 of 212  Planning and Development Services Department 650-329-2321 | Steven.Switzer@CityofPaloAlto.org www.cityofpaloalto.org From: Kenneth Streib <ken_streib@yahoo.com> Sent: Friday, June 28, 2024 3:14 PM To: Switzer, Steven <Steven.Switzer@CityofPaloAlto.org> Subject: Re: 400 Curtner --- 3781 El Camino Real (24PLN-00161) CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. THanks so much for your timely response. And where would be the best place to comment? email to city council? Thanks, Ken Streib On Friday, June 28, 2024 at 08:55:20 AM PDT, Switzer, Steven <steven.switzer@cityofpaloalto.org> wrote: Item 7 Attachment E - Public Comments        Item 7: Staff Report Pg. 72  Packet Pg. 104 of 212  Currently there are 177 units proposed with 203 proposed parking spaces in a parking garage. We are in the early stages of reviewing the project. You are more than welcome to comment on the project and provide any concerns in writing as it progresses through the review process. Steven Switzer Historic Preservation Planner Planning and Development Services Department 650-329-2321 | Steven.Switzer@CityofPaloAlto.org www.cityofpaloalto.org From: Kenneth Streib <ken_streib@yahoo.com> Sent: Thursday, June 27, 2024 7:56 PM To: Switzer, Steven <Steven.Switzer@CityofPaloAlto.org> Subject: Re: 400 Curtner --- 3781 El Camino Real (24PLN-00161) CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. I think the sign is back up or I was just missing it once. I hope this is enough parking, but I fear probably not. If it is not, and they start parking on the street, is there any sort of recourse for us who live here now? Thanks, Ken Item 7 Attachment E - Public Comments        Item 7: Staff Report Pg. 73  Packet Pg. 105 of 212  On Thursday, June 27, 2024 at 04:10:26 PM PDT, Switzer, Steven <steven.switzer@cityofpaloalto.org> wrote: I spoke with the applicant regarding this. Once I have an update I can relay that information over to you. Steven Switzer Historic Preservation Planner Planning and Development Services Department 650-329-2321 | Steven.Switzer@CityofPaloAlto.org www.cityofpaloalto.org From: McKay, Scott <Scott.McKay@CityofPaloAlto.org> Sent: Thursday, June 27, 2024 10:05 AM To: ken_streib@yahoo.com Cc: Switzer, Steven <Steven.Switzer@CityofPaloAlto.org> Subject: RE: 400 Curtner --- 3781 El Camino Real (24PLN-00161) Hi Ken, The address that the project was filed under is 3781 El Camino and the Planning application number is 24PLN-00161. The public notice signage may have been moved to Item 7 Attachment E - Public Comments        Item 7: Staff Report Pg. 74  Packet Pg. 106 of 212  Item 7 Attachment E - Public Comments        Item 7: Staff Report Pg. 75  Packet Pg. 107 of 212  attachments and clicking on links. I notice that the sign came down. Does that mean it was perhaps in the wrong place? Thanks, Ken Streib ----- Forwarded Message ----- From: Kenneth Streib <ken_streib@yahoo.com> To: City Mgr <citymgr@cityofpaloalto.org> Sent: Thursday, June 20, 2024 at 09:55:28 PM PDT Subject: 400 Curtner Greetings, I noticed a new project going up at 400 Curtner. Does the city council decide these things? I was wondering what the parking provisions will be at this new building. Thanks so much for your time, Ken Streib Item 7 Attachment E - Public Comments        Item 7: Staff Report Pg. 76  Packet Pg. 108 of 212  560 Mission Street, Suite 1900 | San Francisco, CA 94105 | T 415.743.6900 | F 415.743.6910 -743-6990 -743-6979 Atlanta | Austin | Birmingham | Boston | Century City | Charlotte | Chattanooga | Chicago | Dallas | Denver | Fort Lauderdale Houston | Jacksonville | Los Angeles | Miami | Nashville | Newport Beach | New York | Orlando | Philadelphia | Portland April 29, 2026 - 5th Floor Re: Invocation of “Builder’s Remedy 2.0” Under AB 1893, and CEQA Compliance for the Housing Development Project at 3781 El Camino Real (24PLN-00161) Dear All: This firm represents Vittoria Management, Inc. (the “Applicant”) in connection with its application for a housing development project consisting of 183 multifamily units (the “Project”) at 3781 El Camino Real (the “Project Site”) in Palo Alto (the “City”). The City determined the Project’s application complete for Permit Streamlining Act purposes on March 17, 2025. As explained in more detail in our previous communication, the Project is protected by the Housing Accountability Act (the “HAA”) inclusive of the Builder’s Remedy provision. The Applicant has also secured vested rights to develop the Project pursuant to the Housing Crisis Act of 2019 (“SB 330”). The purposes of this letter are to: 1. Document the Project’s eligibility for and affirmatively invoke the protections of Assembly Bill (“AB”) 1893, also known as “Builder’s Remedy 2.0”; and 2. Document the Project’s eligibility for the protections of AB 1633 and the “Infill Exemption” from the California Environmental Quality Act (“CEQA”), pursuant to CEQA Guidelines Section 15332. AB 1893’s Protections and Its Applicability AB 1893 went into effect on January 1, 2025 and provides significant new protections for Builder’s Remedy projects. Importantly, its new protections extend to proposals, including the Project, that predate AB 1893’s effective date.1 AB 1893 allows Builder’s Remedy projects to include 13% low 1 See Gov. Code § 65589.5(f)(7)(A) (as amended by AB 1893) (“For a housing development project application that is deemed complete before January 1, 2025, the development proponent for the project may choose to be subject to the provisions of this section that were in place on the date the preliminary application was submitted, or, if the project Item 7 Attachment F - Applicant’s Project Description        Item 7: Staff Report Pg. 77  Packet Pg. 109 of 212  Palo Alto Planning Department April 29, 2026 Page 2 #519811052_v3 income units,2 and for in-process projects switching to Builder’s Remedy 2.0 to make modifications to their proposal even if they exceed a 20% change in units or square footage.3 The Applicant is hereby electing to convert to Builder’s Remedy 2.0 and include 13% low income units (23 total units when calculated as a portion of the Project’s units totally which is below the base maximum per AB 1893) in the now-revised Project. The Applicant reserves all rights it has including under the HAA as amended by AB 1893, or any other state or local laws, to return to its original proposal for the Project if warranted at a later time. In addition to the above-described provisions, AB 1893 includes the following notable protections, of which we wish to remind the City: • Local agencies may not require a Builder’s Remedy 2.0 Project to apply for or receive approval of a general plan amendment, specific plan amendment, rezoning, or other legislative approval.4 Local agencies also may not require a Builder’s Remedy 2.0 Project to apply for or receive any approval or permit not generally required of a non-Builder’s Remedy project of the same type and density.5 • Local agencies may not adopt or impose any requirements (including fees), or undertaking any course of conduct, with respect to Builder’s Remedy 2.0 Projects that do not apply to other projects.6 • Builder’s Remedy 2.0 Projects are deemed consistent with all applicable local standards and plans, and may not be treated as nonconforming uses.7 • Prior to AB 1893, the HAA provided only that jurisdictions could not “disapprove” Builder’s Remedy projects, or condition such projects in a manner that rendered the affordable portion of the project infeasible. AB 1893 has significantly expanded the scope of prohibited actions. In addition to prohibiting a local agency from voting to disapprove a Builder’s Remedy 2.0 Project, AB 1893 also notably prohibits local agencies from: meets the definition of a builder’s remedy project, it may choose to be subject to any or all of the provisions of this section applicable as of January 1, 2025.”). See also Gov. Code § 65589.5(h)(5) (“Notwithstanding any other law, until January 1, 2030, ‘deemed complete’ means that the applicant has submitted a preliminary application pursuant to Section 65941.1 or, if the applicant has not submitted a preliminary application, has submitted a complete application pursuant to Section 65943.”) (emphasis added). 2 Gov. Code §§ 65589.5(d); (h)(3)(C)(i)(III) (as amended by AB 1893). 3 Gov. Code § 65589.5(f)(7)(B) (as amended by AB 1893). 4 Gov. Code § 65589.5(f)(6)(D)(i) (as amended by AB 1893). 5 Gov. Code § 65589.5(f)(6)(D)(ii) (as amended by AB 1893). 6 Gov. Code § 65589.5(f)(6)(E) (as amended by AB 1893). 7 Gov. Code § 65589.5(f)(6)(D)(iii) (as amended by AB 1893). Item 7 Attachment F - Applicant’s Project Description        Item 7: Staff Report Pg. 78  Packet Pg. 110 of 212  Palo Alto Planning Department April 29, 2026 Page 3 #519811052_v3 o Taking a “final administrative action” (other than a vote) that functions as a project disapproval;8 o Subjecting a Builder’s Remedy 2.0 to more than five hearings;9 o Wrongfully determining that a Builder’s Remedy 2.0 Project preliminary application has expired or failed to establish vested rights in contravention of the Permit Streamlining Act;10 o Maintaining a “course of conduct undertaken for an improper purpose” that functions as an “effective disapproval” of a Builder’s Remedy 2.0 Project.11 • AB 1893 also expands the HAA’s prohibition on unlawful conditioning. The local agency is now prohibited from imposing any condition that would render the Builder’s Remedy 2.0 Project as a whole infeasible (rather than just the affordable component of the project).12 The local agency is also now specifically prohibited from imposing a combination of conditions that would render the Builder’s Remedy 2.0 Project infeasible.13 The Project qualifies for AB 1893, as documented in the following chart: Summary of AB 1893 Criteria Project Consistency Affordability (Gov. Code § 65589.5(h)(11)(A)). The project is a housing development project that provides housing for very low, low-, or moderate-income households. Gov. Code § 65589.5(h)(3): 55 years for rental units, 45 years for ownership units. “Housing for mixed-income households” = • At least 7 % “extremely low income” ; or • At least 10 % “very low income”; or • Does the project satisfy one of the applicable affordability percentage requirements? • Yes, the Project includes 13% low income units, calculated as a portion of the Project unit total (which is less than the base maximum per AB 1893). Will the affordability of these units be ensured for the required period? • Yes, the Applicant will ensure affordability of the rental units for 55 years. 8 Gov. Code § 65589.5(h)(6)(A) (as amended by AB 1893). 9 Gov. Code § 65589.5(h)(6)(E) (as amended by AB 1893). 10 Gov. Code § 65589.5(h)(6)(H) (as amended by AB 1893). 11 Gov. Code § 65589.5(h)(6)(D) (as amended by AB 1893). 12 Gov. Code § 65589.5(d) (as amended by AB 1893). 13 Gov. Code § 65589.5(f)(6)(B) (as amended by AB 1893). Item 7 Attachment F - Applicant’s Project Description        Item 7: Staff Report Pg. 79  Packet Pg. 111 of 212  Palo Alto Planning Department April 29, 2026 Page 4 #519811052_v3 Summary of AB 1893 Criteria Project Consistency • site smaller than 1 acre, proposed at Housing element compliance (Gov. Code § 65589.5(h)(11)(B)). When application was “deemed complete” (this includes submission of SB 330 preliminary application or formal application)14 the jurisdiction did not have a housing element that was in substantial compliance 15 with this article. At the time of preliminary application submittal (or, if no preliminary application was submitted, the time of submission of a complete formal application), was the jurisdiction’s housing element certified as substantially compliant by HCD or a court of competent jurisdiction? • No – project qualifies for this requirement. Maximum density (Gov. Code § 65589.5(h)(11)(C)). Must comply with the greatest of the following densities (plus can add any density bonus per State Density Bonus Law): (i) The density does not exceed the greatest of the following densities: (I) Fifty percent greater than the minimum density deemed appropriate to accommodate housing for that jurisdiction as specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2 16 (this is known as the “Mullen density”). Does the project comply with the applicable maximum density? • Yes – Explanation below Using the options at left, we have identified the highest density for each APN of the Project Site, and calculated a weighted average by percentage of the site (63,025 square feet total) that each APN represents, to determine the base maximum density per AB 1893, as follows: APN 132-41-019 = 40 per comprehensive plan x 3 = 120 du/acre + 35 for “highest resource” tract = 155 du/acre 14 Gov. Code § 65589.5(h)(5). 15 See Gov. Code § 65589.55(a) (“For purposes of a local agency’s approval, conditional approval, or disapproval of a housing development project pursuant to subdivision (d) of Section 65589.5, a housing element or amendment shall be considered in substantial compliance with this article only if the element or amendment was in substantial compliance, as determined by the department or a court of competent jurisdiction, when a preliminary application, including all of the information required by subdivision (a) of Section 65941.1, was submitted or, if a preliminary application was not submitted, when a complete application pursuant to Section 65943 was submitted.”). 16 “The following densities shall be deemed appropriate to accommodate housing for lower income households: (i) For an incorporated city within a nonmetropolitan county and for a nonmetropolitan county that has a micropolitan area: sites allowing at least 15 units per acre. (ii) For an unincorporated area in a nonmetropolitan county not included in clause (i): sites allowing at least 10 units per acre. (iii) For a suburban jurisdiction: sites allowing at least Item 7 Attachment F - Applicant’s Project Description        Item 7: Staff Report Pg. 80  Packet Pg. 112 of 212  Palo Alto Planning Department April 29, 2026 Page 5 #519811052_v3 Summary of AB 1893 Criteria Project Consistency general plan, zoning ordinance, or state law, whichever is greater. (III) The density that is consistent with the density specified in the housing element. Add 35 du/acre to the maximum summarized above, if any portion of the site is located within any of the following: (I) One-half mile of a major transit stop.17 (II) A very low vehicle travel area. (III) A high or highest resource census tract, as identified by the latest edition of the “CTCAC/HCD Opportunity Map.”18 • 155 = 13.839 du/acre APN 132-41-020 = 40 per comprehensive plan x 3 = 120 du/acre + 35 for “highest resource” tract = 155 du/acre • 29,618 square feet/ 63,025 square feet x 155 = 72.841 du/acre APN 132-41-083 = 30 mullen + 50% = 45 du/acre + 35 for “highest resource” tract = 80 du/acre • 18,376 square feet/ 63,025 square feet x 80 = 23.325 du/acre APN 132-41-084 = 30 mullen + 50% = 45 du/acre + 35 for “high resource” tract = 80 du/acre • 9,160 square feet/ 63,025 square feet x 80 = 11.627 du/acre 13.839 + 72.841 + 23.325 + 11.627 = 121.63 (rounded to 122) du/acre maximum for the Property under B.R. 2.0, prior to using any State Density Bonus Law bonus yields a 177 unit “base” maximum. The State Density Bonus Law grants a 24.5% bonus for a project that includes 13% low income units. (Govt. Code § 65915(f)(1)) Here that allows up to 220 units. The Project’s proposed 183 units 20 units per acre. (iv) For a jurisdiction in a metropolitan county: sites allowing at least 30 units per acre.” Gov. Code § 65583.2(c)(3)(B). 17 “‘Major transit stop’ means a site containing any of the following: (a) An existing rail or bus rapid transit station. (b) A ferry terminal served by either a bus or rail transit service. (c) The intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods.” Pub. Res. Code § 21064.3. 18 See HCD, 2024 CTCAC Opportunity Map (https://belonging.berkeley.edu/final-2024-ctcac-hcd-opportunity- map). Item 7 Attachment F - Applicant’s Project Description        Item 7: Staff Report Pg. 81  Packet Pg. 113 of 212  Palo Alto Planning Department April 29, 2026 Page 6 #519811052_v3 Summary of AB 1893 Criteria Project Consistency The affordability requirement for AB 1893 is Minimum density (Gov. Code § 65589.5(h)(11)(D)). (i) On sites that have a minimum density requirement and are located within 1/2 mile of a commuter rail station or a heavy rail station, cannot go below the minimum. (ii) On all other sites with a minimum density requirement, the density of the project shall not be less than the local agency’s minimum density or 1/2 of the “Mullen density,” whichever is lower.19 Does the site have a minimum density requirement under the local zoning ordinance? If so, does the project satisfy the statutory minimum density requirements? If not, can it be revised to do so? • Not applicable here – project qualifies Site restrictions (Gov. Code § 65589.5(h)(11)(E)). The project site does not abut a site where more than one-third of the square footage on the site has been used, within the past three years, by a heavy industrial use, or a Title V industrial use, as those terms are defined in Section 65913.16.20 Does the project site abut a disqualifying industrial site? • No 19“The following densities shall be deemed appropriate to accommodate housing for lower income households: (i) For an incorporated city within a nonmetropolitan county and for a nonmetropolitan county that has a micropolitan area: sites allowing at least 15 units per acre. (ii) For an unincorporated area in a nonmetropolitan county not included in clause (i): sites allowing at least 10 units per acre. (iii) For a suburban jurisdiction: sites allowing at least 20 units per acre. (iv) For a jurisdiction in a metropolitan county: sites allowing at least 30 units per acre.” Gov. Code § 65583.2(c)(3)(B). 20 Gov. Code § 65913.16(b): (4) “Heavy industrial use” means a use that is a source, other than a Title V source, as defined by Section 39053.5 of the Health and Safety Code, that is subject to permitting by a district, as defined in Section 39025 of the Health and Safety Code,20 pursuant to Division 26 (commencing with Section 39000) of the Health and Safety Code or the federal Clean Air Act (42 U.S.C. Sec. 7401 et seq.). A use where the only source permitted by a district is an emergency backup generator, and the source is in compliance with permitted emissions and operating limits, is not a heavy industrial use. […] (11) “Title V industrial use” means a use that is a Title V source, as defined in Section 39053.5 of the Health and Safety Code.20 Item 7 Attachment F - Applicant’s Project Description        Item 7: Staff Report Pg. 82  Packet Pg. 114 of 212  Palo Alto Planning Department April 29, 2026 Page 7 #519811052_v3 The Project’s Eligibility for the Protections of AB 1633 and a CEQA Infill Exemption We first note for informational purposes that the Project is eligible for the protections of AB 1633, which became effective January 1, 2024, as documented in more detail in the below chart. Under AB 1633, it is now a violation of the HAA to fail to grant qualifying projects a CEQA exemption, where there is substantial evidence in the record that the project is eligible for such an exemption. AB 1633 limits the City’s authority to require analysis that is not legally required and beyond the limited scope of its discretion. AB 1633 Eligibility Criteria Project Consistency [S]ubstantial evidence in the record before the local agency that the housing development project is not located . . .” in the following areas:21 zone 22 coastal zone. of statewide importance . . . designated on the maps prepared by the Farmland Mapping and Monitoring Program of the Department of Conservation, or land zoned or designated for agricultural protection or preservation by a local ballot measure that was approved by the voters of that jurisdiction.”23 farmland of statewide importance by the California Department of Conservation.24 The Project site is not zoned or designated for agricultural protection, but rather is zoned for urban uses and surrounded by other urban uses. and does not contain wetlands. Cortese List “or a hazardous waste site designated by the Department of Toxic Substances Control,” unless the Department of Toxic Substances 21 Gov. Code § 65589.5.1(a)(1): On a site specified in subparagraphs (A) to (C), inclusive, or subparagraphs (E) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4.” 22 Gov. Code § 65913.4(a)(6)(A) (as amended by SB 423 (2023)). 23 Gov. Code § 65913.4(a)(6)(B). 24 See https://maps.conservation.ca.gov/DLRP/CIFF/, last accessed April 13, 2025. 25 Gov. Code § 65913.4(a)(6)(C) (“as defined in the United States Fish and Wildlife Service Manual, Part 660 FW 2 (June 21, 1993)”). 27 California Environmental Protection Agency Cortese List: https://calepa.ca.gov/sitecleanup/corteselist/, last visited April 12, 2025. Item 7 Attachment F - Applicant’s Project Description        Item 7: Staff Report Pg. 83  Packet Pg. 115 of 212  Palo Alto Planning Department April 29, 2026 Page 8 #519811052_v3 AB 1633 Eligibility Criteria Project Consistency uses.26 fault zone, “unless the development complies with applicable seismic protection building code standards adopted by the California Building Standards Commission . . ., and by any local building department . . ..”28 earthquake fault zone.29 subject to inundation by the 1 percent chance of flood,” unless the project has been issued a Letter of Map Revision or flood plain development permit.30 which is not a special flood hazard area.31 project has received a no-rise certification.32 an adopted natural community conservation plan . . ., habitat conservation plan . . ., or other adopted natural resource protection plan.”34 not identified for conservation. identified as candidate, sensitive, or species of special status by state or and surrounded by urban uses. We do not anticipate the Project site contains such habitat. 26 Gov. Code § 65913.4(a)(6)(E). 28 Gov. Code § 65913.4(a)(6)(F). 29 See https://usgs.maps.arcgis.com/apps/webappviewer/index.html?id=5a6038b3a1684561a9b0aadf88412fcf, last accessed April 13, 2025. 30 Gov. Code § 65913.4(a)(6)(G). 31 See https://hazards- fema.maps.arcgis.com/apps/webappviewer/index.html?id=8b0adb51996444d4879338b5529aa9cd, last accessed April 13, 2025. 32 Gov. Code § 65913.4(a)(6)(H). 33 See https://hazards- fema.maps.arcgis.com/apps/webappviewer/index.html?id=8b0adb51996444d4879338b5529aa9cd, last accessed April 13, 2025. 34 Gov. Code § 65913.4(a)(6)(I). Item 7 Attachment F - Applicant’s Project Description        Item 7: Staff Report Pg. 84  Packet Pg. 116 of 212  Palo Alto Planning Department April 29, 2026 Page 9 #519811052_v3 AB 1633 Eligibility Criteria Project Consistency species, or species protected by the Federal Endangered Species Act . . ., the California Endangered Species Act . . ., or the Native Plant Protection Act . . ..”35 easement.”36 easements recorded on the Project site, based on the Project’s title report. severity zone, as determined by the Department of Forestry and Fire Protection.”37 Hazard Severity Zone within the State Responsibility Area as determined by CALFire.38 The project’s parcel(s) is legal and located “within an urbanized area 39 and meets one or the more of the following criteria . . ..”40 distance” of “a high quality transit corridor,” as defined in Public Resources Code Section 21155(b), or “a major transit stop,” as defined in Pub. Res. Code Section 21064.3.41 qualifies under one or more other criteria. travel area”42 qualifies under one or more other criteria. 35 Gov. Code § 65913.4(a)(6)(J). 36 Gov. Code § 65913.4(a)(6)(K). 37 Gov. Code § 65589.5.1(a)(1)(B) (“Within a very high fire hazard severity zone, as determined by the Department of Forestry and Fire Protection pursuant to Section 51178, or within a high or very high fire hazard severity zone as indicated on maps adopted by the Department of Forestry and Fire Protection pursuant to Section 4202 of the Public Resources Code.”). 38 See https://osfm.fire.ca.gov/what-we-do/community-wildfire-preparedness-and-mitigation/fire-hazard-severity- zones, last accessed April 13, 2025. 39 A parcel is within an urbanized area if it meets the definition provided in Public Resources Code Section 21071. Gov. Code § 65589.5.1(b)(5). The Project site is located in an urbanized area because Palo Alto is a qualifying incorporated city because its population, when combined with the populations of contiguous cities Menlo Park and East Palo Alto, is greater than 100,000. 40 Gov. Code § 65589.5.1(a)(2). 41 Gov. Code § 65589.5.1(a)(2)(A). 42 Gov. Code § 65589.5.1(a)(2)(B). Item 7 Attachment F - Applicant’s Project Description        Item 7: Staff Report Pg. 85  Packet Pg. 117 of 212  Palo Alto Planning Department April 29, 2026 Page 10 #519811052_v3 AB 1633 Eligibility Criteria Project Consistency . . . as of the date of the” application’s submittal.43 A project is proximal an amenity if it is within: • .5 mile of “[a] bus station” or “[a] ferry terminal”; OR 1 mile of “[a] supermarket or grocery store,” “public park,” “community center,” “pharmacy or drugstore,” “medical clinic or hospital,” “public library,” or school serving any grade - kindergarten to 12th grade.44 Community Playing Fields; Grocery Outlet; Barron Park Elementary School; Cornelis Bol Park; and likely others. Analysis not required because the Project qualifies under one or more other criteria. – see row immediately below. (or 3 sides of a 4 sided project site) is adjoined by urban uses.45 shown on Google Maps. The project’s density meets the following criteria units per acre.”46 du/ac. 43 Gov. Code § 65589.5.1(a)(2)(C). 44 Gov. Code § 65589.5.1(b)(4). 45 Gov. Code § 65589.5.1(a)(2)(D). 46 Gov. Code § 65589.5.1(a)(3). Item 7 Attachment F - Applicant’s Project Description        Item 7: Staff Report Pg. 86  Packet Pg. 118 of 212  Palo Alto Planning Department April 29, 2026 Page 11 #519811052_v3 AB 1633 Eligibility Criteria Project Consistency “There is substantial evidence in the record that” • exemption”47; AND • That any categorical exemption sought is not barred by an 48 Urban Infill Exemption, see the discussion below. We anticipate that the City will find the Project eligible for a Class 32 Infill Exemption, because it meets the Class 32 Infill Exemption criteria and is not subject to any of the exceptions, as documented below. 1. The project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations. As revised to proceed under Builder’s Remedy 2.0, the Project is consistent as a matter of law. AB 1893 provides that any project that complies with AB 1893 “shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, redevelopment plan and implementing instruments, or other similar provision for all purposes.”49 On February 7, 2025, San Jose received a Technical Assistance letter from the Department of Housing and Community Development (HCD) that says due to AB 1893, lead agencies cannot rely on subdivision (a) of CEQA Guidelines section 15332 to preclude a project that meets the definition of “Builder’s Remedy” from utilizing a Class 32 Infill Exemption. Builder’s Remedy projects that meet all other criteria for a Class 32 Infill Exemption, and for which none of the exceptions criteria in Section 15300.2 of the CEQA Guidelines apply, are eligible for a Class 32 Infill Exemption. 2. The proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses. The Project Site is approximately 1.45 acres, and is entirely surrounded by urban uses. 3. The project site has no value as a habitat for endangered, rare, or threatened species. The Project Site is not identified in any regional, state, or federal plans for habitat or conservation. The Project Site is developed with urban uses and is surrounded by urban development and significant roadways including El Camino Real, and has no anticipated value as habitat for threatened, rare or endangered species. 47 Gov. Code § 65589.5.1(a)(4)(A) 48 Gov. Code § 65589.5.1(a)(4)(B). 49 Govt. Code §65589.5(f)(1)(D)(iii). Item 7 Attachment F - Applicant’s Project Description        Item 7: Staff Report Pg. 87  Packet Pg. 119 of 212  Palo Alto Planning Department April 29, 2026 Page 12 #519811052_v3 4. Approval of the project would not result in any significant effects relating to traffic, noise, air quality or water quality. The Project does not entail any unusual methods of construction or particularly impactful use, and we anticipate that the Project will be found not to cause significant traffic, noise, air quality, or water quality impacts. 5. The site can be adequately served by all required utilities and public services. The Project would not propose unusually intensive uses, and will be required to comply with all local regulations governing the provision of utilities and public services. Exceptions to Categorical Exemptions 50: 1. The project will not have a significant cumulative impact resulting from “successive projects of the same type in the same place, over time.”51 The Project is a single residential development, and there is no plan to propose “successive” development on the Project Site. Accordingly, we anticipate the City will conclude that the Project will not have any new cumulative impacts related to “successive projects of the same type in the same place, over time.” 2. The project will not “have a significant effect on the environment due to unusual circumstances.”52 There are no unusual circumstances related to the Project. In determining whether the “unusual circumstances” exception applies, the only questions are (a) whether there is any substantial evidence to support the City’s conclusion that the Project does not have unusual features that distinguish it from other comparable Class 32 infill projects, and (b) whether any project opponents have shown that “the project will have a significant environmental effect.”53 The Project is a typical infill housing development project and we anticipate that substantial evidence will demonstrate that the Project will not have a significant effect on the environment. Further, no opponents have demonstrated that the project “will have” significant environmental effects. 50 CEQA Guidelines § 15300.2. 51 CEQA Guidelines § 15300.2(b). 52 CEQA Guidelines § 15300.2(c). 53 Walters v. City of Redondo Beach (2016) 1 Cal.App.5th 809, 822-23 (emphasis in the original). Item 7 Attachment F - Applicant’s Project Description        Item 7: Staff Report Pg. 88  Packet Pg. 120 of 212  Palo Alto Planning Department April 29, 2026 Page 13 #519811052_v3 3. The project will not “result in damage to scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway.”54 The Project has no effect on scenic highways. 4. The project is not “located on a site which is included on any list compiled pursuant to Section 65962.5 of the Government Code.”55 The Project Site is not listed on the Cortese List and it is not designated by the Department of Toxic Substances Control as a hazardous waste site.56 5. The project will not cause a substantial adverse change in the significance of a historical resource.”57 The Project Site is not a designated as historic. This exception may only be applied to the extent that designation had already been made on or before the Project’s complete application was submitted.58 As outlined in this letter, the Project is eligible for AB 1633 and a Class 32 Infill Exemption. The Applicant would like to move forward with the process to complete CEQA, including any specific studies required, and look forward to discussing with the City as soon as possible. We appreciate the City’s attention to this Project. Sincerely, HOLLAND & KNIGHT LLP Genna Yarkin Chelsea Maclean 54 CEQA Guidelines § 15300.2(d). 55 CEQA Guidelines § 15300.2(e). 56 California Environmental Protection Agency Cortese List: https://calepa.ca.gov/sitecleanup/corteselist/, last visited April 12, 2025. 57 CEQA Guidelines § 15300.2(f). 58 Gov. Code § 65913.10. Item 7 Attachment F - Applicant’s Project Description        Item 7: Staff Report Pg. 89  Packet Pg. 121 of 212  Palo Alto Planning Department April 29, 2026 Page 14 #519811052_v3 Item 7 Attachment F - Applicant’s Project Description        Item 7: Staff Report Pg. 90  Packet Pg. 122 of 212  May 11th 2026 3781 El Camino Real Developer Leter Dear Honorable Mayor and Members of the City Council, We are pleased to present 3781 El Camino Real, a 183-unit mul�family residen�al development that directly responds to Palo Alto’s cri�cal housing needs and the City’s long-term vision for El Camino Real. This project was filed in February 2024 under California’s Builder’s Remedy provision — a state law that allows housing projects to proceed outside of local zoning restric�ons in jurisdic�ons whose Housing Element had not yet received HCD cer�fica�on. At the �me of filing, Palo Alto’s Housing Element had not been cer�fied; HCD cer�fica�on was subsequently received in August 2024. The project also invokes State Density Bonus Law and Assembly Bill 130, which provides a CEQA exemp�on for qualifying infill housing projects. On September 22, 2025, the Applicant formally invoked the AB 130 CEQA exemp�on and demonstrated the Project’s eligibility across all applicable criteria. While this is not a conven�onal en�tlement pathway, we have taken care to design a project that is though�ul, appropriately scaled, and reflec�ve of the City's vision for El Camino Real. The project delivers 183 units of new housing — including 23 units affordable to low-income households at or below 80% AMI, consistent with AB 1893's affordability requirements. We recognize that the project's affordability component has evolved since the original filing, and we are commited to delivering these 23 BMR units as a meaningful contribu�on to the City's housing goals. Beyond housing, the project offers tangible community benefits: it brings added vitality and ac�vates a stretch of El Camino Real that would benefit from reinvigora�on, with an architecturally engaging building; it improves streetscape condi�ons at the entrance to the Ventura neighborhood, including enhanced sidewalks; and it is broadly consistent with the El Camino Real Focus Area Plan and the City’s recently adopted Objec�ve Design Standards. The project has been subject to thorough review with City staff and appeared before the Architectural Review Board as required. We received design feedback that we have incorporated into the current plans — including expanding the third-floor balconies; adjus�ng the architectural detailing and materials along Curtner Avenue to further enhance the pedestrian experience; improving the appearance of the parking area and adding trellises along blank walls to increase visual interest; and improving bicycle circula�on by adding a door that connects the bike storage room to the garage, giving cyclists mul�ple paths of egress. We are grateful to City Council, City staff, and the ARB for the �me and rigor they have brought to reviewing this project. We respec�ully request your support in approving 183 units of new Item 7 Attachment F - Applicant’s Project Description        Item 7: Staff Report Pg. 91  Packet Pg. 123 of 212  mul�family housing at 3781 El Camino Real and look forward to delivering much-needed housing for the Palo Alto community. Sincerely, Alex Giovannoto Vitoria Management, Inc. President Item 7 Attachment F - Applicant’s Project Description        Item 7: Staff Report Pg. 92  Packet Pg. 124 of 212  3781 El Camino Real Design Updates Item 7 Attachment F - Applicant’s Project Description        Item 7: Staff Report Pg. 93  Packet Pg. 125 of 212  Expanded Patios on Podium Level ARB Comment: ARB members suggested expanding the patios at the podium level to enhance livability and activate the building's street presence. Design Response: 1 1 Expanded the patios at the podium level, maximizing usable outdoor space for residents and strengthening the connection between the building and the street. Item 7 Attachment F - Applicant’s Project Description        Item 7: Staff Report Pg. 94  Packet Pg. 126 of 212  Improved Bike Circulation and Trash Staging ARB Comment: ARB members recommended adding a door connecting the bike room directly to the garage for improved resident access. The City and ARB also recommended relocating the trash staging area — previously within the trash termination room — to a position adjacent to the street to allow for easier trash circulation. Design Response: 1 1 Added direct bike room access to the garage. Relocated trash staging to Curtner Ave frontage for efficient service access. 2 2 Item 7 Attachment F - Applicant’s Project Description        Item 7: Staff Report Pg. 95  Packet Pg. 127 of 212  Updated Curtner Frontage ARB Comment: Rethink the garage entry materials, add visual interest to the blank flanking walls, and improve parking structure screening particularly from adjacent properties. Design Response: Redesigned the garage entry to better integrate with the architecture and added trellises on either side to activate the frontage. Enhanced parking screening strategy to improve views from neighboring properties. 1 2 1 Item 7 Attachment F - Applicant’s Project Description        Item 7: Staff Report Pg. 96  Packet Pg. 128 of 212  If you need assistance reviewing the above documents, please contact the Project Planner or call the Planner-on-Duty at 650-617-3117 or email planner@paloalto.gov Project Plans In order to reduce paper consumption, a limited number of hard copy project plans are provided to Councilmembers for their review. The same plans are available to the public, at all hours of the day, via the following online resources. Directions to review Project plans and environmental documents online: 1. Go to: https://www.paloalto.gov/Departments/Planning-Development-Services/Development- Services/Palo-Alto-Permit-View 2. Select the Planning Application Type. 3. Search for “3781 El Camino Real” and open record by clicking on the blue dot 4. Review the record details on the left side and open the “more details” option 5. Use the “Records Info” drop down menu and select “Attachments” 6. Open the attachment named “C7_3781 ECR_Plans.pdf” and dated 4/22/2026 to review the plan set. Direct Link to Project Webpage: https://www.paloalto.gov/Departments/Planning-Development-Services/Current-Planning/Projects/3781-El- Camino-Real Materials Boards: Color and material boards will be available to view in chambers during the hearing. Item 7 Attachment G - Project Plans        Item 7: Staff Report Pg. 97  Packet Pg. 129 of 212  City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Manager Meeting Date: May 11, 2026 Report #:2604-6320 TITLE Expedited Evaluation of the Potential Temporary Closure of the Churchill Avenue Rail Crossing, Determination of Next Steps, and CEQA Status – Statutorily and Categorically Exempt. BACKGROUND This item is a continuation of Agenda Item Number 1 on the City Council April 15, 2026 meeting agenda. The original staff report and attachments are available online here (Agenda Item Number 1): https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=20077 On April 15, 2026, City Council considered this item and continued it to May 11, 2026. On April 15, 2026, City Council heard the staff presentation and public testimony; this item continued to the May 11, 2026 City Council meeting is for continued Council discussion, deliberation, and potential action – No public testimony will be heard on May 11, 2026. ATTACHMENTS Attachment A: Supplemental Report Issued April 30, 2026 APPROVED BY: Ed Shikada, City Manager Item 8 Item 8 Staff Report        Item 8: Staff Report Pg. 1  Packet Pg. 130 of 212  Item No. 8. Page 1 of 2 9 8 9 9 City Council Supplemental Report From: Ed Shikada, City Manager Meeting Date: May 11, 2026 Item Number: 8 Report #:2604-6305 TITLE Expedited Evaluation of the Potential Temporary Closure of the Churchill Avenue Rail Crossing, Determination of Next Steps, and CEQA Status – Statutorily and Categorically Exempt. RECOMMENDATION Continue the expedited evaluation of the Churchill Avenue temporary rail crossing closure agenda item from the City Council meeting on April 15, 2026, as recommended by the Rail Safety Ad Hoc Committee to May 11, 2026, to finalize direction. BACKGROUND At the April 15, 2026, City Council meeting, the Rail Safety Ad Hoc Committee recommended that after receiving the evaluation and public input of the expedited evaluation of the Churchill Avenue temporary rail closure, the City Council continue the agenda item to the May 11, 2026, City Council meeting to finalize direction. This Supplemental Report addresses questions requiring follow-up from the City Council meeting on April 15. Quiet Zones Timeline Quiet Zone implementation along the Caltrain corridor is a City Council priority. The Quiet Zone effort is planned to be implemented in two phases: 1) Palo Alto Avenue (Alma Street) crossing; and 2) Churchill Avenue, Meadow Drive, and Charleston Road crossings. For the Palo Alto Avenue crossing, design was completed in 2025, and required improvements are under construction. Next steps consist of staff seeking final review by the California Public Utilities Commission (CPUC) and Federal Railroad Administration (FRA) staff before issuing the Notice of Establishment (NOE) expected in summer 2026. For the Churchill Avenue, Meadow Drive, and Charleston Road crossings, Quiet Zone implementation involves installation of four quadrant gate systems at each of these three Item 8 Item 8 Supplemental Report        Item 8: Staff Report Pg. 2  Packet Pg. 131 of 212  Item No. 8. Page 2 of 2 9 8 9 9 crossings. The study was completed in 2025 and the conceptual plan for improvements was approved by the City Council on November 10, 2025. Staff is collaborating with Caltrain as the City will complete the design and Caltrain will implement the construction. The initial estimated cost for all three crossings is $5.7 million. The project design is currently funded in FY 2027 ($0.4 million) and FY 2028 ($1 million), with construction funded in FY 2029 ($4.2 million) and 2030 ($0.1 million) based on the availability of Measure K funding, the local business tax measure that includes funding for rail grade separation and safety improvements. Project Design and Construction by Caltrain: This alternative was previously considered; however, due to limited staffing resources at Caltrain, it was determined that the City should complete the design before transferring the project to Caltrain for construction. Additionally, the FRA requires that Quiet Zone requests be submitted by the local agency. Caltrain recommended that the City secure all necessary CPUC and FRA reviews and approvals prior to transitioning the project. Process Efficiency and Streamlining in the Design Phase: The design phase includes procurement, agreement execution, and regulatory reviews. Procurement typically takes 3–6 months, while agreements with Caltrain require Rail Committee review and City Council approval. Negotiations, coordination, agendizing and approvals can be time- consuming and/or resource intensive. These activities could be streamlined by securing earlier funding availability (such as consolidating both phases of design into FY 2027) and providing the City Manager with authority to proceed with a solicitation exemption, negotiations, and contract execution. These actions could accelerate the project design timeline from 18 months to approximately 10 months. Allocate Dedicated Staff to Accelerate Implementation: The Office of Transportation has currently engaged an hourly project manager to advance efforts associated with the Churchill Ave evaluation of the potential temporary closure project. This position utilizes salary savings associated with current vacancies. To continue to accelerate this work into the next fiscal year following successful recruitment efforts, funding would be needed for a limited term position or ongoing hourly project manager. JED Foundation: APPROVED BY: Ed Shikada, City Manager Item 8 Item 8 Supplemental Report        Item 8: Staff Report Pg. 3  Packet Pg. 132 of 212  City Council Staff Report From: City Manager Report Type: INFORMATION REPORTS Lead Department: Utilities Meeting Date: May 11, 2026 Report #:2604-6221 TITLE Informational Update on the Palo Alto Dark Fiber Expansion Plan and Fiber-to-the-Premises RECOMMENDATION This report is for informational purposes only; no Council action is requested. EXECUTIVE SUMMARY This update summarizes construction milestones and program activities of the City-owned fiber backbone expansion (funded in the Fiber Optic Network System Rebuid CIP) and Fiber-to-the- Premises (FTTP) pilot. The City’s fiber network has proven to be a valuable investment in providing communication and data needs for utility facilities, public safety, City departments, and community centers. In addition, the City’s dark fiber licensing business, which serves commercial and institutional customers, has been successful by enabling customers to meet their bandwidth and data transmission requirements and raised over $30 million in reserves for fiber backbone expansion. Construction of the FTTP service infrastructure to launch service to a pilot area is complete. The new fiber hut at Colorado Substation is energized; fiber is spliced and connected back to Equinix; and networking equipment is installed. In the pilot area, aerial construction is complete; fiber distribution cabinets are deployed and active; and multiport service terminals are attached to poles and tested. After weather-related delays earlier this year, final end-to- end system testing is completed. Activation of 20 or more early adopters in the pilot area is targeted by the end of June. These early adopters will help staff validate contractor installation processes, service activation, customer service workflows, and network support. Staff will return to the Utilities Advisory Commission (UAC) and Council with early pilot service results, including customer, operational, and financial metrics, to help inform recommendations of the next phase(s) of the FTTP. Item A Item A Staff Report        Item A: Staff Report Pg. 1  Packet Pg. 133 of 212  Three key attributes to offering Palo Alto Fiber include offering the only Palo Alto-based internet service, owned and operated by the City, with transparency and accountability customers can rely on as a City service; local, professional and responsive customer service; and providing the community another internet option which would increase competition and lower rates amongst the internet providers. BACKGROUND 1). Included in the Council’s motion was to a) maximize number of homes and businesses reached; b) consider promotional rates to increase subscriptions (aka ”take rate”); c) define leading indicators and metrics to determine success; and d) recommend Council accelerate expansion if metrics are positive, including a potential bond to streamline construction and compress construction time as much as feasible. The City’s fiber optic backbone network was constructed in the mid-1990s. The estimated useful life of fiber plant is typically 30 to 40 years. Rebuilding and expanding the fiber backbone is essential to maintaining and improving network reliability and security, increasing network coverage and capacity for City departments, commercial dark fiber customers, FTTP, and supporting some “smart city” initiatives for Information Technology, Office of Emergency Services, Public Safety, Public Works, Transportation and Utilities. The FTTP pilot is intended to test the City’s readiness and viability to provide a competitively priced, local, high-speed internet option. Having other available internet service may reduce overall prices in Palo Alto and enhance customer experience. ANALYSIS 1 City Council, December 19, 2022; Staff Report #14800: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/2022/12-19-2022-id-14800.pdf Item A Item A Staff Report        Item A: Staff Report Pg. 2  Packet Pg. 134 of 212  As staff has advanced the pilot, one key lesson learned has been that fiber deployment does not generate cost efficiencies when coupled with grid mod work in all areas. While there are still opportunities to coordinate where beneficial, staff learned to better identify strategic areas for alignment, such as selected undergrounding areas. Staff is actively identifying opportunities to serve new multifamily residential developments because of lower and shared construction costs. FISCAL/RESOURCE IMPACT 3). Through Council authorization through the budget process, approximately, $5.5 million of $20 million was spent for the pilot which is a subset of phase 1 including aerial construction, pole make ready, fiber hut, reinforced foundation for the hut, networking equipment, data center, and system applications. $3 million of the $5.5 million are 3Fiscal Year 2025 Annual Comprehensive Financial Report: https://www.paloalto.gov/files/assets/public/v/1/administrative-services/financial-reporting/annual- comprehensive-financial-reports-acfr/current-2011-acfrs/city-of-palo-alto-acfr-fye-06.30.2025-final-secured.pdf Item A Item A Staff Report        Item A: Staff Report Pg. 3  Packet Pg. 135 of 212  one-time investment costs (i.e. fiber hut, data center, networking equipment) for FTTP pilot and future expansion. Additionally, the FY 2026-2027 proposed budget was built based on this current status update. STAKEHOLDER ENGAGEMENT 5). UAC recognized a substantial portion of the fiber funds are being used to enhance the fiber backbone. Enhancing the fiber backbone will happen regardless of FTTP being offered. The goals of the FTTP pilot are technical feasibility, operational efficiency, customer satisfaction, and internet pricing. UAC requested staff to return to them a few months after FTTP is launched with take rate, financial analysis, and other data metrics from the pilot to assess the business plan and financial viability of FTTP. 6). The rate structure includes a maximum price and allows flexibility for setting standard and promotional rates to remain competitive for Phase 1 customers. Staff expects to continue stakeholder coordination through regular UAC and Council updates and ongoing public engagement as pilot data becomes available. ENVIRONMENTAL REVIEW 7). APPROVED BY: 5 UAC Meeting January 7, 2026; Staff Report #2511-5445: https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=da34516b-4f8e-4af9-8bb6-6ea10ec1f235 6 Council Meeting June 16, 2025; Staff Report #2411-3776: https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=35104f06-6925-4fe3-89c7-b0e53e6eec42 7 https://www.paloalto.gov/files/assets/public/v/1/city-manager/communications-office/palo-alto-fiber/mnd- final-docs/final-initial-study-mitigated-negative-declaration.pdf Item A Item A Staff Report        Item A: Staff Report Pg. 4  Packet Pg. 136 of 212  City Council Staff Report From: City Manager Report Type: INFORMATION Lead Department: Transportation Meeting Date: May 11, 2026 Report #:2603-6168 TITLE Palo Alto Transportation Management Association 2025 Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey RECOMMENDATION No action is recommended; this is for information only. The 2025 Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey by the Palo Alto Transportation Management Association are being transmitted for compliance with the contractual agreement. EXECUTIVE SUMMARY The City contracts with the Palo Alto Transportation Management Association (TMA) to implement programs to reduce single-occupancy vehicle (SOV) trips to and from Palo Alto. The funding agreement between the Palo Alto TMA and the City restricts the use of City funds to trip reduction programs and requires the TMA to report on the use of these funds. The attached Annual Report covers the 2025 calendar year, detailing how the City’s contribution was used to support SOV trip reduction, including the results of the Fall 2025 Commute Survey. The attachment also includes the FY 2027-29 TMA Strategic Plan. The work of the TMA supports the City’s Sustainability and Climate Action Plan (S/CAP) Goals by working to reduce vehicle miles traveled and increasing the mode share for active transportation and transit. Additional program history can be found in the April 23, 2024, Finance Committee Staff Report.1 1 Finance Committee, April 23, 2024, Agenda Item #6; SR #2403-2761, https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=4692&meetingTemplateType=2&co mp iledMeetingDocumentId=9724 Item B Item B Staff Report        Item B: Staff Report Pg. 1  Packet Pg. 137 of 212  BACKGROUND 3￿ TMA formation was a key component of this approach. To this end, on August 11, 2014, City authorized a consulting contract that resulted in TMA-formation as a program of Silicon Valley Community Foundation in January 20164￿ Palo Alto TMA was subsequently incorporated as a 501(c)(3) non-profit entity on February 12, 2018. Table 1: Comprehensive Plan Policies and Programs related to PATMA Policy Program Description T-1.1 Take a comprehensive approach to reducing single-occupant vehicle trips by involving those who live, work and shop in Palo Alto in developing strategies that make it easier and more convenient not to drive. T-1.2 Collaborate with Palo Alto employers and business owners to develop, implement and expand comprehensive programs like the TMA to reduce single-occupant vehicle commute trips, including through incentives. T1.2.1 Create a long-term education program to change the travel habits of residents, visitors, shoppers and workers by informing them about transportation alternatives, incentives, and impacts. Work with the PAUSD and other public and private interests, such as the Chamber of Commerce and Commuter Wallet partners, to develop and implement this program. T1.2.4 Evaluate the performance of pilot programs implemented by the Palo Alto Transportation Management Association and pursue expansion from Downtown to California Avenue and other areas of the city when appropriate. T1.2.6 Pursue full participation of Palo Alto employers in the TMA. T-1.13 Encourage services that complement and enhance the transportation options available to help Palo Alto residents and employees make first/last mile connections and travel within the city for daily needs without using a single- occupancy vehicle, including shuttle, taxi and ridesharing services. T-2.2 As part of the effort to reduce traffic congestion, seek ongoing funding and engage employers to operate and expand TMAs to address transportation and parking issues as appropriate in the City’s employment districts. 3 City Council, September 16, 2013, Agenda Item #12; SR #4087, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=757&dbid=0&repo=PaloAlto&searchid=5783b38f- f4fb-425c-afda-dd1615e126cc 4 City Council, August 11, 2014; Agenda Item #4; SR #4766, https://www.cityofpaloalto.org/civicax/filebank/documents/43344 Item B Item B Staff Report        Item B: Staff Report Pg. 2  Packet Pg. 138 of 212  Table 1: Comprehensive Plan Policies and Programs related to PATMA Policy Program Description T2.2.1 Work in partnership with the Palo Alto TMA and Stanford University to aggregate data and realize measurable reductions in single-occupant vehicle commuting to and from Downtown and in the Stanford Research Park. T-5.5 Minimize the need for employees to park in and adjacent to commercial centers, employment districts and schools. T7.1.1 Expand transportation opportunities for transit-dependent riders by supporting discounts for taxi fares, rideshare services and transit, by coordinating transit systems to be shared by multiple senior housing developments, by maintaining a database of volunteer drivers and other transit options. Between 2016 and the present, Council has authorized funding agreements with PATMA to support TDM programs aimed at reducing vehicular trips and parking demand in Palo Alto’s commercial areas. During 2020, programs were adjusted to provide additional service for essential workers; and in 2021 programs were expanded from Downtown to the California Avenue Business District. Programs were also adjusted in response to changed user preferences and participation rates following the pandemic: Scoop and WAZE carpool programs were discontinued between 2021 and 2023, and the Bike Love incentive program was added in 2022. The Bike Love program provides $5 per day (up to $600 per year) to new bicycle or e-scooter commuters in geofenced employment areas in the city. In partnership with Palo Alto-based non-profit Silicon Valley Bicycle Exchange, PATMA also provides refurbished bikes at no cost to drivers who wish to begin bicycling to work in Palo Alto. On September 11, 2023, Council approved the current three-year funding agreement with PATMA, which provided $242,000 in FY 2024 (with $25,000 to reduce SOV trips beyond the California Avenue and Downtown districts), $400,000 in FY 2025, and $400,000 in FY 2026. The FY 2025 and FY 2026 amounts include a new $10,000 Electric Bike/Scooter Pilot program from the City’s Utilities Department and a $200,000 budget to serve to workers citywide in addition to maintaining the same balance of $200,000 for services in the Downtown and California Avenue districts. Funding levels, program types and outputs are summarized in Table 2. Outputs are summarized by calendar year and therefore summaries are not yet available for 2026, while funding is listed by fiscal year. Item B Item B Staff Report        Item B: Staff Report Pg. 3  Packet Pg. 139 of 212  Item B Item B Staff Report        Item B: Staff Report Pg. 4  Packet Pg. 140 of 212  Table 2: Summary of PATMA Results, 2018-2025 2016 2017 2018 2019 2020*2021 2022 2023 2024 2025 2026 # Parking Spaces Freed Up**~134 ~393 331 333 360 125 125 266 312 487 # Transit Pass Participants 42 102 227 221 260 119 120 252 300 468 # Lyft Active Users (3+/wk)4 18 10 7 10 5 4 3 4 3 # Waze Active Users start ~100 44 95 88 0.7 0.5 stop #Scoop Registrations 666 1,308 # Scoop Active Users ~88 173 50 10 2 stop # Bike Love Users (3+/wk) start 11 8 16 # Bike Love Users (1+/mo) 33 29 43 # Survey Responses NA NA 496 1,471 N/A 551 511 738 885 920 FY agreement amount ($k)100 100 480 480 750 350 150 200 242 400 400 Council approval or consideration date 6/13/16 2/13/17 7 6/27/17 12/10/18 5/15 & 6/17/19 8 5/13 & 5/26/20 9 11/30/20 6/2021 6/2022 9/11/23 3/x/24 10 2/12 & 6/17/24 11 6/16/25 12 *Numbers for Q1 only due to pandemic **Transit pass holders + Lyft users + Waze users + Scoop users + Bike Love 3+ users 7 City Council, June 13, 2016: Agenda Item #10; SR #6823, https://www.cityofpaloalto.org/civicax/filebank/documents/52687 8 Finance Committee, April 16, 2019; Agenda Item #4; SR #10198, https://www.cityofpaloalto.org/civicax/filebank/documents/70194, Presentation: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=63435.61&BlobID=70664 9 City Council, May 26, 2020; Informational Report; SR #11307, https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=64175.41&BlobID=76770; City Council, May 26, 2020; Agenda Item #1; SR #11376; https://www.cityofpaloalto.org/civicax/filebank/documents/76803, Action Minutes: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=48631.05&BlobID=77870 10 City Council, September 11, 2023; Agenda Item #7; SR #2308-1883; 11 City Council, February 12, 2024; Agenda Item #11; SR #2311-2233; https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=3638&meetingTemplateType=2&comp iledMeetingDocumentId=9079; City Council, June 17, 2024; Agenda Item #28; SR#2406-3140; https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=5334&meetingTemplateType=2&compile dMeetingDocumentId=10470 12 City Council, June 16, 2025; Agenda Item #23, SR #2503-4250; https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=6448&dbid=0&repo=PaloAlto Item B Item B Staff Report        Item B: Staff Report Pg. 5  Packet Pg. 141 of 212  ANALYSIS Regular reports are required under the TMA’s funding agreement with the City. In the past year, the TMA has reached new service milestones by providing commute support to over 500 workers. The TMA helped 471 low-income workers either via free transit passes or guaranteed rides home via an after-hours Lyft service. An additional 59 commuters participated in the Bike Love $5/day program. These programs reduced daily parking demand by almost 500 spaces in business districts. To support new transit users, PATMA provides free Clipper Cards loaded with annual or monthly passes for Caltrain, VTA buses, SamTrans buses, and Dumbarton Transbay buses. The TMA receives free Caltrain GoPasses via Caltrain’s PassForward Program which provides over $1.5 million in transit pass value yearly to the TMA. To support new bicyclists, PATMA promotes its Bike Love incentive app and provides free refurbished bicycles. A feature of the Bike Love app designed by mobile app developer Motion is the restriction that the $5 per day incentive (up to $600 per year) be spent at Palo Alto businesses, thereby re-circulating City funds into the local economy. The attached Annual Report covers the 2025 calendar year, detailing how public funds were spent to support SOV trip reduction, including the results of the Fall 2025 Downtown Commute Survey. The attachment also includes the 2027-2029 TMA Strategic Plan which is required to be updated by the funding agreement. The Annual Report highlights several accomplishments, noting that in 2025, the TMA: Reduced close to 500 parking spaces not needed in commercial areas around Palo Alto Serves and markets to low wage service sector workers beyond Downtown and California Ave, such as along El Camino Real, at the Stanford Mall, in Midtown, and in South Palo Alto Supports small businesses around the Caltrans El Camino Real repaving project by offering train and bus passes and refurbished bikes to workers who used to park on El Camino Real The following insights gleaned from the 2025 Commute Survey point to additional mode shift opportunities among workers in Palo Alto. Overall, the drive alone rate fell from 62% among respondents last year to 55% this year. The highest drive alone rates are among government employees even though their drive alone rate fell from 72% in 2024 to 67% in 2025. (BayPass for benefitted City of Palo Alto workers became available mid-2025.) 72% of respondents live in cities served by a train or bus that runs to Palo Alto. Item B Item B Staff Report        Item B: Staff Report Pg. 6  Packet Pg. 142 of 212  Service sector workers tend to live closer to work and government workers tend to live farthest away. 136 respondents (14.7%) live less than five miles from work and are open to an active commute. Total travel time or schedule is the overarching consideration when deciding how to commute. (Total travel time includes in-vehicle time plus access time and wait time, which is affected by service reliability or on-time performance.) 217 respondents (23.5%) said they needed more bike parking at work Barriers to a sustainable commute include perceptions about the timeliness of trains and buses, safety of stations and stops, safety of biking and scootering on roads with cars, and demands outside of work on their time. These data point to the potential for mode shift among workers who live less than five miles from work or who can take one train or bus to work in Palo Alto. Policy Implications The City’s Sustainability and Climate Action Plan (S/CAP) includes two mobility goals that are directly supported by the work of the TMA: Reduce total vehicle miles traveled 12% by 2030, compared to a 2019 baseline, by reducing commute vehicle miles traveled 20%, visitor vehicles miles traveled 10%, and resident vehicle miles traveled 6% Increase the mode share for active transportation (walking, biking) and transit from 19% to 40% of local work trips by 2030 In addition, the transportation demand management (TDM) services provided by the TMA are consistent with Comprehensive Plan policies and programs as listed in Table 1. FISCAL/RESOURCE IMPACT The current funding agreement is a three-year agreement expiring at the end of FY 2026 (June 30, 2026). As part of the FY 2026 Adopted Budget, a total of $400,000 was approved as the ongoing funding amount for the TMA from the University Avenue Parking Fund ($200,000) and the General Fund ($200,000). STAKEHOLDER ENGAGEMENT Monthly Palo Alto TMA Board of Directors meetings are open to the public and occur at 9 a.m. on the third Thursday of the month. Information about board meetings can be found at the Palo Alto TMA website: https://www.paloaltotma.org/ Item B Item B Staff Report        Item B: Staff Report Pg. 7  Packet Pg. 143 of 212  ENVIRONMENTAL REVIEW Transmission of these reports is for informational purposes only and does not approve any specific project or funding. It can be seen with certainty that there is no possibility of a significant impact on the environment (State CEQA Guidelines Section 15061(b)(3)) and this item is exempt from CEQA review. Attachment A: 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey : Ria Hutabarat Lo, Chief Transportation Official Item B Item B Staff Report        Item B: Staff Report Pg. 8  Packet Pg. 144 of 212  March 25, 2026 Palo Alto City Councilmembers Subject: PATMA’s 2025 Annual Report, Three-Year Strategic Plan, and 2025 Commute Survey Dear Councilmembers , The non-profit Palo Alto Transportation Management Association (PATMA) is pleased to present three reports for your consideration. Written in an easy to skim style, you will see attached PATMA’s 2025 Annual Report, Three-Year Strategic Plan (FY 2027 – FY 2029), and 2025 Commute Survey. In FY 2025, PATMA’s budget was restored to $400,000/year, closer to pre-pandemic levels. With the same budget level in FY 2027, we anticipate that 500 parking spaces will be freed up, greenhouse gas emissions reduced, and local businesses supported . We also understand the City’s budget situation and offer two additional budget scenarios. Three Budget Scenarios for FY 2027 Program Elements Expenses - $400,000 budget Expenses - $375,000 budget Expenses - $350,000 budget Transit Passes $262,504 $242,504 $217,504 Bike Love Rewards $45,242 $45,242 $45,242 Commute Survey $30,000 $25,000 $25,000 Refurbished Bicycles $5,200 $5,200 $5,200 Lyft Afterhours Rides Home $4,573 $4,573 $4,573 PATMA Administration $35,144 $35,144 $35,144 Business Expenses $17,337 $17,337 $17,337 Total $400,000 $375,000 $350,000 In the $375,000 budget scenario, PATMA expects to free up 450 parking spaces . With this lower budget, PATMA would cut staff program hours, reduce marketing on transit passes, and collect fewer commute survey responses. In the $350,000 budget scenario, PATMA would cut back further on staff hours, reduce marketing efforts, purchase fewer transit passes, collect fewer commute survey responses, and would expect to free up 400 parking spaces . PATMA is pleased to support the City Council’s 2026 goals of economic development and government efficiency, as well as its leadership on climate action. Let me know if you have any questions. Kind regards, Justine Burt Executive Director, Palo Alto Transportation Management Association Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 9  Packet Pg. 145 of 212  2025 Annual Report Three-Year Strategic Plan (FY 2027 - FY 2029) 2025 Commute Survey Submitted to the Palo Alto City Council and Finance Committee March 13, 2026 Prepared by: Palo Alto Transportation Management Association 855 El Camino Real #13A-200, Palo Alto, CA 94301 www.paloaltotma.org Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 10  Packet Pg. 146 of 212  2025 Annual Report January 1, 2025 – December 31, 2025 Submitted to the Palo Alto City Council Prepared by: Palo Alto Transportation Management Association 855 El Camino Real #13A-200, Palo Alto, CA 94301 www.paloaltotma.org March 2026 Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 11  Packet Pg. 147 of 212  Table of Contents Executive Summary ......................................................................................................................... 1 Introduction .................................................................................................................................... 1 About PATMA .................................................................................................................................. 2 PATMA’s Top Five Accomplishments .............................................................................................. 3 Programs ......................................................................................................................................... 4 Benefits of PATMA Programs .......................................................................................................... 8 Program Results .............................................................................................................................. 9 Finances ........................................................................................................................................ 13 Conclusion ..................................................................................................................................... 16 Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 12  Packet Pg. 148 of 212  1 Palo Alto Transportation Management Association 2025 Annual Report Executive Summary With leadership from the City of Palo Alto, as well as collaborative partnerships with regional transit agencies, local community-based organizations, and grantmaking organizations, in 2025, the Palo Alto Transportation Management Association (PATMA) delivered a dramatic increase in program results. PATMA’s sustainable transportation programs for workers – free train and bus passes, $5/day Bike Love bicycle commute incentive rewards, free refurbished bicycles, after-hour Lyft rides, and an e-bike e-scooter pilot – resulted in a reduction in demand for 482 parking spaces around town, 2,933,038 fewer vehicle miles traveled, and 1,152 fewer tons of greenhouse gas emissions. With these accomplishments, PATMA supported three of the 2025 Palo Alto City Council’s four priorities: economic development & retail vibrancy, climate change, and community health. Highlights of PATMA’s work in 2025 included: • Impact of program work o Close to 500 parking spaces not needed in commercial areas around Palo Alto • Geographic reach o Now serving low wage service sector workers around town: Downtown, on California Ave, along El Camino Real, at the Stanford Mall, at Midtown, and in South Palo Alto o In these areas, PATMA marketed sustainable transportation information and incentives and conducted the annual commute survey • Small business support o Around Caltrans’ El Camino Real repaving project where bike lanes replaced 220 on-street parking spaces, PATMA offered train and bus passes and refurbished bikes to workers who park on El Camino These developments lay a strong foundation for PATMA’s future work to accomplish even more sustainable transportation mode shift. Introduction The Palo Alto TMA is a non-profit working to reduce single-occupancy vehicle (SOV) commute trips, traffic congestion, demand for parking and greenhouse gas emissions by delivering targeted transportation solutions to Palo Alto workers. Financial support for this work comes from the City of Palo Alto’s University Avenue and California Avenue parking funds and from Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 13  Packet Pg. 149 of 212  2 the City’s General Fund. This funding allows PATMA to provide free transit passes, $5/day Bike Love rewards, refurbished bicycles, and late-night Lyft rides chiefly to low wage service sector workers in the commercial districts of Palo Alto. About PATMA Staff PATMA is a non-profit, staffed by ALTRANS TMA Inc., a firm specializing in transportation demand management (TDM). Staff providing on-going support for PATMA include: ● Justine Burt, Executive Director ● Lucey Gorrill, TDM Coordinator ● Stephen Blaylock, President, ALTRANS TMA Inc. ● Andrew Ridley, Chief Operating Officer, ALTRANS TMA Inc. Board of Directors In 2025, the City of Palo Alto’s new Chief Transportation Official Ria Hutabarat Lo joined PATMA’s board while Nathaniel Duncan moved on from his role at Patagonia as the Store Manager and stepped down from the PATMA Board. At the end of the year, board members included: ● Cedric de la Beaujardiere, resident (Board Chair) ● Rob George, Philz Coffee (Treasurer and a founding board member) ● Shannon Rose McEntee, retired and resident (Secretary) ● Ria Lo, City of Palo Alto ● Sebastian Mafla, Sheraton ● Alejandra Mier, Coupa Café ● Steven Lee, attorney and resident The PATMA board meets monthly on the third Thursday at 9:00am and efficiently works through one hour of agenda items. Nearly all board members regularly attend. The public is encouraged to join these virtual meetings. Meeting details and zoom links can be found on our Meetings page at https://www.paloaltotma.org/bod-meetings. Mission and Core Values PATMA’s mission statement reads “Better commutes for everyone.” Our core values describe how our non-profit improves life for the workers and residents of Palo Alto: • Traffic and parking – reduce traffic congestion and demand for parking • Climate change – transition to a zero-emission transportation system • Equity – fair outcomes, treatment and opportunities for all • Local businesses – help local businesses attract and retain employees • Health – encourage community health Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 14  Packet Pg. 150 of 212  3 Incorporating City of Palo Alto Priorities While the original motivation for the Palo Alto City Council to create PATMA was to alleviate traffic congestion and reduce demand for parking downtown, each year, PATMA overlays the City Council’s stated priorities to guide its work. In January 2025, the City Council announced its priorities for the year: 1. Implementing Housing Strategies for Social & Economic Balance 2. Climate Action & Adaptation, and Natural Environment Protection 3. Economic Development & Retail Vibrancy 4. Public Safety, Wellness & Belonging PATMA’s work supports three of these priorities: climate action, economic development & retail vibrancy, and public wellness. Regarding City Council’s priority of addressing climate action, PATMA helps reduce greenhouse gases from on-road transportation sources which are 56.8% of Palo Alto’s emissions, according to the City’s 2024 Greenhouse Gas Emissions inventory. One-third of these on-road transportation sources come from commuters which PATMA helps mode shift to sustainable transport. Supporting City of Palo Alto’s Sustainability/Climate Action Plan (S/CAP) The City of Palo Alto set a goal to reduce greenhouse gas emissions 80% below 1990 levels by 2030 and to become carbon neutral by 2030. One S/CAP mobility goal relevant to PATMA regarding reducing greenhouse gas emissions is “increasing the mode share for active transportation (walking, biking) and transit from 19% to 40% of local work trips by 2030.” The S/CAP focuses on launching effective programs for emissions reductions with the highest impact and lowest cost. PATMA’s programs help accomplish this goal as noted in the following section. Note that in the 2022 Greenhouse Gas Emissions Inventory, on -road transportation sources contributed 51.7% of GHGs. The jump to 56.8% in 2024 makes PATMA’s work even more vital to the City’s GHG reduction goals. PATMA’s Top Five Accomplishments The following provide highlights of PATMA’s work in 2025. 1. Reduced 1,152 tons of greenhouse gas emissions in 2025, a reduction beyond 603 tons in 2024 2. Continued to grow the transit pass program from a pandemic-induced low of 28 people served in May 2020 to a high of 468 in December 2025. Figure 1 shows the number of PATMA-granted transit passes in circulation among Palo Alto workers over the past seven years. Note that PATMA issued 522 transit passes but due to some worker turnover or people not activating passes, 468 were activated as of the end of 2025. Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 15  Packet Pg. 151 of 212  4 Figure 1: Transit Passes Activated 2019 – 2025 3. Received approval from transit agencies to continue distributing Caltrain GoPasses in 2025 and VTA SmartPasses through August 2025 to low wage service sector workers to help grow transit ridership. 4. Activated and distributed 352 Caltrain GoPasses from the Caltrain GoPass Donation Program. Likewise, 63 VTA SmartPasses were distributed to low wage service sector workers in 2025. 5. Completed e-bike and e-scooter pilot program with City of Palo Alto Utilities funding to develop case studies that will inspire other low wage service sector workers to consider active commutes. These activities demonstrate the power of partnerships with local and regional organizations as well as the trust PATMA has established with local business managers. Programs With funding from the City’s University Avenue Parking Fund, California Avenue Parking Fund, and General Fund, PATMA provides free Clipper Cards loaded with annual or monthly passes for Caltrain, VTA buses, SamTrans buses, and Dumbarton Transbay buses. PATMA also offers $10 Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 16  Packet Pg. 152 of 212  5 credits for after-hours Lyft rides of less than five miles, refurbished bicycles at no cost to the recipient, and $5/day Bike Love rewards for biking or e-scootering to work. During 2025, PATMA conducted extensive outreach along El Camino Real around Caltrans’ repaving and protected bike lanes installation to help mitigate the loss of on-street parking to small businesses. PATMA also continued to market mode shift programs in other commercial areas such as Downtown, along California Ave, at the Stanford Mall, at Midtown, and in South Palo Alto. Service sector workers who receive transit passes work primarily in food service establishments, retail, accommodation, and dental and medical offices. Light office workers who receive transit passes or accrue Bike Love rewards include staff at banks, insurance agencies, real estate management companies, and in educational services (tutoring). Programs with income thresholds Train and bus passes Transit pass benefits are provided to employees earning less than $111,700 per year who work in the commercial areas of Palo Alto and who do not already receive employer-supported TDM benefits. Workers at the Stanford Research Park, at Stanford University, and at developments with TDM plans are ineligible for PATMA’s programs as these organizations have their own TDM programs. Pilot: E-bicycles and e-scooters With funding from the City of Palo Alto Utilities Department, in 2025 PATMA wrapped up a pilot program to study e-bikes and e-scooters for active mobility commutes. Five pilot participants making less than $70,000/year received either an e-bike or a 12-month e-scooter lease. The intent was to study how many times a week they used the e-bike or e-scooter, how many miles they commuted, and understand barriers to device use. Insights gleaned will inform new PATMA active mobility pilots and programs moving forward. Refurbished bicycles In 2025, PATMA continued working with local non-profit Bike Exchange to provide eight refurbished bicycles and safety gear to essential workers. This p rogram is open to workers making less than $111,700/year. Figure 2 shows eight Palo Alto-based essential workers receiving their refurbished bicycles. Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 17  Packet Pg. 153 of 212  6 Figure 2: Essential Workers Take Delivery of Their “New” Refurbished Bikes Maria Jamilah Ahmed Claudia Grisel Sarat Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 18  Packet Pg. 154 of 212  7 Cody Eddy Lyft after-hours rides PATMA’s Lyft after-hours program provides rides home after transit stops running to workers commuting less than five miles. PATMA programs without an income threshold Bike Love rewards The Bike Love smartphone app provides daily incentives for active mode first-mile commute trips to transit and active mode commutes between home and work, of $5/day up to $599 per year per commuter. Automated travel mode detection identifies eligible bike, e-bike, e-scooter, and e-skateboard trips. Eligibility is determined by trips that stop or start within geofences around 30 Caltrain stations and seven commercial areas (Downtown, California Ave., Stanford Mall, El Camino Real, Midtown, and two areas East of Highway 101). Incentive dollars are instantly redeemable at local merchants via reloadable Apple/Google Wallet Virtual Visa cards. Figure 3 shows the current geofences that mark commute destinations where workers earn rewards. This map includes Caltrain stations, for workers who use a bike or e -scooter for first/last mile, as well as expanded commercial areas. Figure 3: 2025 Bike Love Geofence Boundaries Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 19  Packet Pg. 155 of 212  8 In 2025, 49% of the total number of transactions and 27% of the transaction value of redeemed rewards happened in Palo Alto, in support of the City Council’s 2025 priority for retail vitality. The ability of Bike Love users to redeem incentives at Palo Alto businesses helps keep dollars in the local economy. Figure 4 provides detail about where Bike Love users spent their reward funds. Figure 4: Where Bike Love Rewards Were Spent in 2025 All Palo Alto Mountain View Redwood City San Francisco San Carlos Sunny- vale Menlo Park Amazon or online Other cities Transactions value ($) 23,700 6,413 267 973 1,316 148 420 2,361 7,311 4,491 Number of transactions 1,582 777 38 78 62 16 21 114 228 248 Source: Motion This information is gathered from merchant identification numbers where rewards are redeemed. Part way through 2025, after conferring with the bank that issues the rewards, Motion (the software programming start-up that developed Bike Love) changed the app to only allow redemptions at Palo Alto brick and mortar businesses. For a quick overview video explaining the app, please visit Bike Love in 80 seconds (video). Benefits of PATMA Programs While PATMA programs save service workers and light office workers money on their commutes, many other benefits of these programs accrue to local businesses, workers, and Palo Alto residents. Businesses For business owners and managers, PATMA participation gives them a competitive advantage over similar businesses in nearby cities. Being able to provide transit passes to their employees helps shops, restaurants, and hotels attract and retain workers in competitive industries with high rates of staff turnover. Workers Workers who stop driving not only save money on variable vehicle costs such as gasoline, maintenance, and repairs, they also escape the stress of having to drive in traffic congestion and find parking. The workers who commute by active modes enjoy the benefits of exercise that allow them to arrive at work energized and refreshed. Palo Alto Residents PATMA’s programs on the City’s behalf reduce traffic congestion, free up parking spaces in commercial areas, and enhance the quality of life for residents by reducing the number of cars circulating on City streets and parked in lots, garages, and neighborhoods. Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 20  Packet Pg. 156 of 212  9 Program Results Results of the TMA’s program management, marketing, and administrative labor in Figures 5 - 11 depict the number of transit passes distributed by employer, types of transit passes distributed along El Camino Real, number of commuters shifted to sustainable mode, cost per user, parking spaces not needed, avoided vehicle miles traveled, and tons of greenhouse gases reduced. Among all businesses served, Figure 5 breaks out by business the number of their employees in descending order who had an active train or bus pass from PATMA in 2025. Figure 5: Number of Transit Passes Distributed by Employer in 2025 Employers Transit Pass Count Sheraton/Westin 45 Neiman Marcus 24 Bloomingdale's 19 Nobu Hotel 18 Whole Foods Market 17 Patagonia 15 Ettan 14 Apple 13 Macy's 13 Walgreens 11 Wells Fargo 10 AJ Tutoring 8 Philz Coffee 8 Rooh 8 Sephora 8 Coupa Café 7 Khazana 7 Crepevine 6 NOA Technologies 6 Rangoon Ruby 6 Avenidas 5 Backcountry 5 Citibank 5 Oren’s Hummus 5 Panda Express 5 True Food Kitchen 5 Agile Physical Therapy Sutter Health (contractor to PAMF) 4 Employers Transit Pass Count Blue Bottle Coffee 4 Christine Hansen DDS & Associates 4 Glass Slipper Inn 4 Lytton Gardens 4 Peloton 4 The Melt 4 The Real Real 4 Buca di Beppo 3 Comfort Inn 3 Local Union 271 3 Lululemon 3 Modern Animal 3 Mollie Stone's Market 3 Pacific Catch 3 Palo Alto Orthodontics 3 PIP Printing of Palo Alto 3 Rails Clothing 3 San Agus 3 Vein Treatment Clinic (VIP) 3 Vince 3 Watercourse Way 3 Webster House 3 Americas Best Value Inn Sky Ranch Palo Alto 2 Anthropologie 2 Arya Steakhouse 2 Coach 2 Crowne Plaza Hotel 2 Employers Transit Pass Count Dion Health 2 Equinox 2 Fleming’s Prime Steakhouse 2 Hobee's 2 Hotel Keen 2 L&P Aesthetics 2 Lenscrafters 2 Levi’s 2 Macarena Restaurant 2 Nordstrom 2 On Running 2 Palo Alto Bicycles 2 Palo Alto Inn 2 Palo Alto Oral & Maxillofacial Surgery 2 Peninsula Creamery 2 Ramen Kowa 2 Spring Spa 2 Summit Bicycles 2 Sunglass Hut 2 Tacolicious 2 University Chiropractic & Wellness 2 West Elm 2 Wetzel’s Pretzels 2 Yayoi 2 Allbirds 1 Arcteryx 1 Banana Republic 1 Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 21  Packet Pg. 157 of 212  10 Employers Transit Pass Count Beckstead Dental Group 1 Bell's Books 1 Beyond Explorations 1 Blue Danube Spa 1 Café 220 1 Cardinal Hotel 1 Chanel 1 Channing House 1 Christopher B. Wong DDS 1 City National Bank 1 City of Palo Alto 1 American Express (Employee: Kingston Technologies Inc) 1 Club Pilates 1 Curry Up Now 1 Dental office 1 Dinah's Garden Hotel 1 Dr Phillip Fletcher 1 Dr. William Tseng 1 Elisha Marie Skin & Body 1 Evvia Estiatorio 1 Fast Repair 1 Fjallraven 1 Free People 1 Gap 1 Go Fish Poke Bar 1 Guckenheimer: Palo Alto Club 1 H&R Block, Block Advisors 1 Hassett Hardware 1 Hummus Mediterranean kitchen 1 Illuminate Plastic Surgery 1 J Crew 1 Jerold H Lipson, D.D.S., M.S. Inc 1 Employers Transit Pass Count Joe & The Juice 1 K. Minamoto 1 KEEN 1 KinderCare Downtown Palo Alto 1 Kowa Ramen 1 La Bodeguita del Medio 1 La Selva Group 1 Landscaping 1 Law Office of Peter S. Stern 1 Levi's 2 Local Union 271 3 Mademoiselle Colette 1 Magnussen's Toyota of Palo Alto 1 McDonald's 1 Mendocino Farms 1 Nola's 1 Northern California Women's Imaging Center 1 Osteria Toscana 1 Outerknown 1 Palo Alto Academy Bilingual Montessori 1 Palo Alto Dermatology Institute 1 Palo Alto Pathology 1 Palo Alto Weekly 1 Pinkberry 1 PIP Printing of Palo Alto 3 Provident Credit Union 1 Reformation 1 Restaurante Macarena 1 Sanford Heisler Sharp McKnight, LLP 1 School of Rock 1 Silicon Valley Bicycle Exchange 1 Employers Transit Pass Count SkinSpirit 1 Sprinkles 1 Sprout Cafe 1 Starbucks 1 Sunglasses Hut 1 Sutter Health 1 Tamarine Restaurant 1 Taverna 1 Terun 1 Tesla 1 The Bike Connection 1 The IO Clinic 1 The North Face 1 The Palo Alto Inn 1 The Zen Hotel 1 Therabody 1 Tidal Partners 1 Tinder 1 Trader Joes 1 University Optometry 1 Urban Outfitters 1 VCA Palo Alto Animal Hospital 1 Victra 1 Visual Comfort & Co. 1 Vitality Bowls 1 Vuori 1 Waverley Surgery Center 1 Williams Sonoma 1 Woof Gang Bakery 1 Xfinity 1 Zola + BarZola 1 Grand Total (issued passes) 522 Figure 6 provides the number of transit passes PATMA distributed to businesses along El Camino Real (between Park Blvd and San Antonio Rd) by month. PATMA’s proactive transit pass outreach efforts were conducted along with Silicon Valley Bicycle Coalition volunteers to help reduce demand for parking around the time of the Caltrans repaving and bike lane project in 2025. Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 22  Packet Pg. 158 of 212  11 Figure 6: Transit Passes Distributed Along El Camino Real by Month in 2025 Month Caltrain VTA SamTrans Dumbarton Express Jan 3 7 0 0 Feb 1 4 0 1 Mar 1 0 0 0 Apr 0 0 0 0 May 4 3 0 0 Jun 2 1 0 0 Jul 1 1 0 0 Aug 0 0 0 0 Sep 3 0 0 1 Oct 0 0 0 0 Nov 1 3 1 0 Dec 0 1 0 0 Total 16 20 1 2 Overall, PATMA’s marketing and outreach efforts throughout Palo Alto in 2025 resulted in the following impacts. Figure 7: Number of Commuters Shifted to More Sustainable Commute Mode (average of three months) Program Q1 2025 Q2 2025 Q3 2025 Q4 2025 Transit passes 269 301 343 449 Bike Love (>12 rides/month) 15 17 19 16 Lyft 4 3 2 2 Total 288 320 364 467 Figures 8 and 9 show the average cost per month and the annual cost for PATMA to mode shift workers out of single-occupancy vehicles and into a sustainable transportation commute. Figure 8: Cost per User in 2025 Cost per User Monthly Average in Q1 2025 Monthly Average in Q2 2025 Monthly Average in Q3 2025 Monthly Average in Q4 2025 Annual Total Transit pass subsidy $19.06 $23.82 $47.65 $41.56 $395.53 Bike Love (users with 1 or more trips/month) $51.22 $71.36 $55.37 $52.16 $644.02 Lyft $54.81 $75.06 $72.10 $134.25 $909.05 Average cost/user $41.70 $56.75 $58.37 $75.99 $649.53 The cost per user rising in 2025 is attributable to the end of the VTA Smartpass pilot in August at which point PATMA started buying full-cost VTA passes again. Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 23  Packet Pg. 159 of 212  12 Figure 9 shows the number of parking spaces freed up around town as a result of PATMA’s work. Figure 9: Parking Spaces Not Needed Parking Spaces Not Needed Q1 2025 Q2 2025 Q3 2025 Q4 2025 Average Transit passes 269 301 343 449 341 Bike Love (> or = 12 trips/month) 15 17 19 16 16 Lyft 4 3 2 2 3 Total 288 320 364 467 360 Figure 10 shows the number of avoided vehicle miles traveled as a result of PATMA’s programs. Figure 10: Avoided Vehicle Miles Traveled in 2025 Program Q1 2025 Q2 2025 Q3 2025 Q4 2025 Total Transit pass subsidy 487,895 772,122 755,149 901,552 2,916,717 Lyft 214 175 147 238 774 Bike Love 3,013 4,381 4,357 3,796 15,547 Total 491,122 776,677 759,653 905,586 2,933,038 Adding up the four quarters, PATMA programs reduced vehicle miles traveled by 2,933,038. And finally, Figure 11 shows greenhouse gas emissions reduced as a result of these programs. Figure 11: Greenhouse Gases Reduced (tons) Program Q1 2025 Q2 2025 Q3 2025 Q4 2025 Total Transit passes, Lyft, and Bike Love 193 305 298 355 1,152 In 2025, PATMA’s work resulted in a reduction of greenhouse gas emissions of 1,152 tons, up from 603 tons in 2024. Testimonials Beyond the quantitative effect, PATMA also has a qualitative positive impact on workers in Palo Alto. The following feedback from employees of local businesses shows how much PATMA’s programs mean to the community. Here are some testimonials received from retail, accommodations, and personal services establishments. • "I love the new electric trains. The Express is 25-30 minutes between Palo Alto and San Francisco 4th and King. In terms of safety, all the signage is easy to read, the trains are clean and disabled-friendly. I like that Caltrain takes care of all members of the community who have an array of needs." Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 24  Packet Pg. 160 of 212  13 • “I am a business owner and my staff loves the train passes, and I love knowing they can get here safely and not take up customer parking spaces or have to move their cars around during the day. Thanks!!!!” • “This program helps me in many ways. I am able to come to work stress free, I get some steps in for my health, and it is helping me financially. I love this program. Getting up to take the train helps me mentally too because it gets me out in the beautiful weather.” • “I’ve been using the Palo Alto TMA service, so I am really enjoying my bus ride to Union City.” • “I bike to Caltrain from my house to 4th & Townsend and catch Caltrain. Huge fan of the new electric trains. They are much faster, more comfortable, quieter, brighter and definitely more reliable. As someone in the retail sector, the GoPass program has been a huge boon to me.” • “Thanks to this program I am driving less and becoming better with time management.” • “Agradezco al programa por facilitarme la movilidad hacia mi trabajo. (I am grateful to the program for facilitating my commute to work.)” Finances When PATMA was a burgeoning non-profit, it grew and demonstrated results which helped make the case for increasing its City funding allocation. Then in 2020, the pandemic altered commuting habits and parking fund revenues fell dramatically. PATMA has been expanding its positive impact since then. Figure 12 shows the history of PATMA’s funding allotments since FY 2016. Figure 12: PATMA Funding Since Inception PATMA continually strives to be a good steward of taxpayer dollars and use funding efficiently to maximize benefits. Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 25  Packet Pg. 161 of 212  14 Grant Funding In 2025, PATMA concluded grant work for two organizations that provided funding for pilot programs. • VTA Transit Oriented Communities - $24,550 for outreach and marketing along El Camino Real to encourage mode shift to VTA buses • City of Palo Alto Utilities - $10,000 grant for e-bike and e-scooter pilot These grants complemented City of Palo Alto funding. Even though both projects happened in 2024 and 2025, funding for these pilot programs was received in 2024. Revenues and Expenses Figure 13 provides specific information about income sources and expenses by month. Figure 13: PATMA Revenues and Expenses in 2025 Figures 14 and 15 show relative income sources and expenditures. Note that the fair market value of Caltrain GoPasses ($1,545,984) and VTA Smartpasses ($68,040) in 2025 that PATMA Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 26  Packet Pg. 162 of 212  15 received for free or at a discounted price respectively are not included in Figure 14’s Overview of 2025 Revenues. Figure 14: Overview of 2025 Revenues In terms of expenses listed in Figure 15, administration labor (ex.: bookkeeping, taxes, board meetings, reporting) was 10%, well below the 30% limit required in the contract between the City and PATMA. Other major program expenses included transit passes, refurbished bikes, Bike Love rewards, Lyft after hours, the annual commute survey, the e-bike and e-scooter pilot, and business expenses (ex.: mailbox rental, software, office supplies). Figure 15: Overview of 2025 Expenses Memberships $3,000 City of Palo Alto $400,000 Memberships City of Palo Alto Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 27  Packet Pg. 163 of 212  16 Conclusion With the City of Palo Alto’s support, in 2025, PATMA dramatically increased the number of workers who left their cars at home and took the train, bus, bike, or electric scooter to work. The number of transit passes distributed grew from 249 in January to 468 in December. Added to this number are the workers who received a refurbished bike for commuting, received Bike Love rewards, took after hours Lyft rides home after transit stopped running, or participated in the e-bike and e-scooter pilot. When added together, 482 workers commuted by sustainable transportation mode and freed up that number of parking spaces in the commercial areas of Palo Alto. Greenhouse gas reductions nearly doubled from 603 tons in 2024 to 1,152 tons in 2025. A number of collaborators were instrumental to these successes. Thanks to our colleagues at Caltrain and VTA, additional free Caltrain GoPasses and highly discounted VTA Smartpasses helped bring down PATMA’s cost/user. Grant providers supported PATMA with specific aspects of our mode shift work along El Camino Real and for the active mobility pilot. Local and regional non-profits such as Bike Exchange, Silicon Valley Bicycle Coalition, Seamless Bay Area , and Palo Alto Forward either provided services, volunteers, or introduced PATMA to potential funders to grow our work. Managers at local businesses and non-profits encouraged their employees to apply for PATMA’s programs. In addition, PATMA’s Board members provided valuable advice. All together, these collaborations helped position PATMA to have an even larger impact reducing traffic, demand for parking, and greenhouse gas emissions while supporting a vibrant retail community in 2026. Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 28  Packet Pg. 164 of 212  Three-Year Strategic Plan July 1, 2026 – June 30, 2029 Submitted to the Palo Alto City Council Prepared by: Palo Alto Transportation Management Association 855 El Camino Real #13A-200, Palo Alto, CA 94301 www.paloaltotma.org March 2026 Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 29  Packet Pg. 165 of 212  Table of Contents Executive Summary ....................................................................................................................................... 1 Introduction .................................................................................................................................................. 2 Context .......................................................................................................................................................... 2 PATMA Programs .......................................................................................................................................... 5 Accomplishments .......................................................................................................................................... 6 Three-Year Strategic Planning ....................................................................................................................... 6 Workplan ..................................................................................................................................................... 11 Budget ......................................................................................................................................................... 12 Conclusion ................................................................................................................................................... 14 Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 30  Packet Pg. 166 of 212  1 PATMA’s Three Year Strategic Plan July 1, 2026 – June 30, 2029 Executive Summary Each year, the Palo Alto Transportation Management Association (PATMA) conducts a Three-Year Strategic Plan with input from its Board of Directors. This plan provides a roadmap of goals, strategies, tactics, and objectives that ensure the non -profit will be able to help an increasing number of workers shift from driving single-occupancy vehicles to sustainable transportation modes. PATMA’s work supports local businesses with transportation demand management programs that help companies attract and retain workers: free transit passes, refurbished bicycles, $5/day rewards for active mobility commutes, and after-hours Lyft rides of less than five miles. For the past five years, PATMA has been rebuilding from a pandemic-induced 90% drop in transit pass requests in early 2020 and in 2025 far exceeded pre-pandemic numbers. For the 12-month period ending December 31, 2025, PATMA programs resulted in a reduction in demand for 482 parking spaces around town, 2,933,038 fewer vehicle miles traveled1, and 1,152 fewer tons of greenhouse gas emissions. Collaboration with our partners where our goals are aligned has been key to our progress as has the City of Palo Alto’s generous $400,000 budget allocation which has allowed PATMA’s programs to nearly double itsimpact in the past year. Building on these successes, this Strategic Plan provides details about how we will reach the following goals in the next three years. • Year 1: Grow PATMA’s impact by focusing mode shift efforts on workers for whom it would be easiest and most beneficial to switch from driving to train, bus, or bike • Year 2: Double PATMA’s positive impact from 2025 numbers: transit passes distributed, parking spaces freed up, and greenhouse gas emissions reduced • Year 3: Further grow PATMA’s positive impact to reduce traffic congestion, demand for parking, and greenhouse gas emissions. We have identified targets for additional mode shift: Palo Alto workers who live in San Jose, Fremont, Redwood City, East Palo Alto, and Mountain View who could take one train, one bus, bike or scooter to work. PATMA is poised to grow our impact further and needs to identify additional funds beyond the $400,000 budget to pay for additional bus passes, refurbished bicycles, Bike Love rewards, and additional labor for marketing and program administration. This is a good problem to have: knowing how we want to grow and being able to describe the path and resources needed to reach our goals for the next three years. 1 To calculate the total vehicle miles traveled reduction: distance in miles not travelled from home zip code to work zip code roundtrip, multiplied by the number of weekdays in a month, added up over 12 months. Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 31  Packet Pg. 167 of 212  2 Introduction The Palo Alto Transportation Management Association (PATMA) is a non-profit leading efforts to reshape commute behaviors around town. Abundant mass transit, active mobility (bicycle, electric scooter, walking), on-demand ride hailing options, as well as trip planning and real time arrival apps are available to enable many workers who live and work near major transit pipelines (Caltrain, VTA 22/522, SamTrans ECR, and the Dumbarton Express) to commute quickly and efficiently without needing to own a personal vehicle. In this context, PATMA provides information and incentives that encourage workers to shift out of their single -occupancy vehicles (SOVs) and into low-carbon transportation options. There is potential for PATMA to free up more parking spaces and reduce more greenhouse gas emissions. The following Three-Year Strategic Plan, which is compiled each year for the next three years, lays out goals, strategies, tactics, and objectives for PATMA’s work supporting Palo Alto businesses and workers. Background Context Several contextual elements inform this strategic plan, including: the City of Palo Alto’s ambitious greenhouse gas emission reduction goals, the fact that on-road transportation contributes more than half of Palo Alto’s greenhouse gases emissions, the goals the Palo Alto City Council sets each January, PATMA’s contract with the City of Palo Alto, PATMA’s bylaws, and PATMA’s mission and values. The following gives an overview of each element. Sustainability Climate Action Plan (S/CAP) The City of Palo Alto set a goal to reduce greenhouse gas emissions 80% below 1990 levels by 2030 and to become carbon neutral by 2030. One S/CAP mobility goal relevant to PATMA regarding reducing greenhouse gas emissions is “increasing the mode share for active transportation (walking, biking) and transit from 19% to 40% of local work trips by 2030.” According to PATMA’s 2025 commute survey findings, three of four sectors in Palo Alto already exceed the 40% metric: service, light office, and technology: • Service – 49.3% • Light office – 60.0% • Tech – 47.5% • Government – 33.3% Currently, the government sector is the only one that is not meeting that goal. This year, PATMA will begin offering programs to City of Palo Alto hourly workers who do not receive benefits, which will help mode shift more government workers. PATMA will continue working with the service sector - in retail, food service, accommodation, and healthcare – which has a high sustainable commute rate already but also high turnover. PATMA will also continue to market programs to serve more workers in the light office sector. Finally, PATMA supports mode shift efforts at large tech companies and the City of Palo Alto by sharing annual Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 32  Packet Pg. 168 of 212  3 commute survey findings, and in the case of tech companies, tabling at commuter fairs when requested. All of these efforts contribute results towards the City’s S/CAP goals. City Council Goals Each year, the Palo Alto City Council sets their goals for the year. In January 2026, those goals included: 1. Government efficiency 2. Housing production 3. Economic development 4. Renovation of Cubberley Community Center PATMA’s programs help address two of these: economic development and government efficiency. PATMA helps local businesses to attract and retain employees by providing low wage workers with commute counseling, access to free transit passes, rewards for bicycling to work, and late -night ride hailing services. These programs contribute to retail vibrancy and economic development. When PATMA begins providing mode shift programs to hourly City government workers this year, the City will be outsourcing mode shift work to a contractor instead of hiring new staff within. This is an example of government efficiency that will save the City money while expanding support for City workers. PATMA’s Contract with the City of Palo Alto The contract between the City of Palo Alto and PATMA provides guidance about how public funds should be used to ensure the public good as well as planning, reporting, and surveying requirements. • Use of City funds – “PATMA shall use the City Funds for “pilot projects” intended to reduce single occupancy vehicle trips by Downtown and California Avenue Business District workers, as mutually agreed upon by the City Manager and PATMA. For FY24 and FY25, $200,000 of City Funds may be used to reduce single occupancy vehicle trips anywhere in Palo Alto. Pilot projects may include purchase and distribution of transit passes, active commute rewards, support for carpooling, and other measures to address first mile and last mile connections. If PATMA uses City Funds to purchase transit passes to give away free-of-charge, the free transit passes shall be provided solely to low income workers.” • Planning – “PATMA shall: (a) conduct an annual strategic planning session producing 3-year goals and objectives and funding requirements, and prepare an annual budget with projected metrics (cost per mode shift, ROI, etc.), and (b) annually provide to the City a detailed, updated strategic plan and budget. The strategic plan may utilize scenarios to illustrate the return on investment associated with different funding levels. The strategic plan shall identify the projects proposed to be funded with the City Funds for the City Manager’s review and approval.” • Reporting – “PATMA shall provide the City with quarterly written reports on the implementation and effectiveness of pilot programs funded by the City, including Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 33  Packet Pg. 169 of 212  4 quantitative measures of SOV trip reduction and mode shift achieved, metrics used, cost per employee mode shift, and how the City Funds were expended. PATMA shall submit the reports at the same time that PATMA submits the quarterly invoice to the City.” • Surveying – “PATMA shall conduct a robust survey of Downtown and California Avenue Business District employee commute patterns on an annual basis. Additional areas of Palo Alto where the TMA has been active may be included in the survey.” PATMA’s Bylaws PATMA’s bylaws provide operating instructions for the non-profit. One way it does this is by ensuring PATMA’s board members represent a range of interests among the Palo Alto community as well as the number of board members PATMA should have. • Qualifications of Directors. “The Board shall in good faith strive to include as Directors, representatives from major stakeholder groups serving PATMA’s current or planned/proposed service areas, including representatives of the following industries: technology, real estate development, retail and/or hospitality, philanthropy, and traditional office (e.g., finance, accounting, legal) and including representatives representing residential interests.” • Number of Directors. “The authorized number of Directors shall consist of at least five but no more than thirteen Directors.” Mission and Core Values In 2024, PATMA rewrote its mission and values to be more concise and memorable. Mission Better commutes for everyone Core values • Traffic – lighten traffic congestion • Parking – reduce demand for parking in commercial areas • Climate change – transition to a zero-emission transportation system • Equity – fair outcomes, treatment and opportunities for all • Local businesses – help local businesses attract and retain employees • Health – encourage community health These reflect the Palo Alto City Council’s stated values and priorities and reinforce City policies. Higher Income Threshold In January 2025, PATMA’s board decided to raise the threshold to 80% of Area Median Income in Santa Clara County which in April 2025 was raised to $111,700/year for a household of one. Altogether, this context provides guidance to PATMA about how to structure our programs to best serve the public’s interest. Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 34  Packet Pg. 170 of 212  5 PATMA Programs Programs With a $111,700/year Income Threshold Transit Passes Currently, PATMA focuses on supporting essential workers in the commercial districts of Downtown and California Ave, at the Stanford Mall, along El Camino Real, at Midtown, and along San Antonio Rd. If any of these workers2 are driving to work and make less than $111,700/year, they may receive free Caltrain, VTA, SamTrans, or Dumbarton Transbay bus passes. Refurbished Bicycles In 2022, PATMA piloted a refurbished bicycle program with the local non-profit Bike Exchange. This refurbished bicycle program is for essential workers in Palo Alto making less than PATMA’s income threshold who would like to bike to work but do not own a bicycle. If they also need any safety equipment – helmet, lock, lights – Bike Exchange provides these to each essential worker receiving a refurbished bike. E-bike E-scooter Pilot With funding from the City of Palo Alto Utilities, this pilot studied two mode shift scenarios: active commutes via e-bike and first/last mile solutions via e-scooter. Five pilot participants making less than $70,000/year received either an e-bike and safety equipment, or a 12-month e-scooter lease. The intent was to study how many times a week they used the e-bike or e-scooter, how many device miles they traveled, and understand supports and barriers to device use. Lessons learned from this pilot can be found in PATMA’s 2025 Annual Report. After hours Lyft rides Workers who live less than five miles from work and who need to travel home from work late at night after mass transit stops can receive a $10 Lyft credit per ride. Program Without an Income Threshold Bike Love PATMA’s Bike Love app provides $5/day up to $599/year to workers in Palo Alto’s commercial districts to encourage commuters to leave their cars at home and bike or e-scooter to work. Unlike the transit pass program, there are no income restrictions for the Bike Love program. The app was designed to provide attractive financial rewards to build active mobility 2 With the exception of workers at businesses subject to a Transportation Demand Management (TDM) plan in which case those businesses are to provide their workers with TDM mode shift programs. Figure 1: Geofenced Areas for Bike Love Rewards Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 35  Packet Pg. 171 of 212  6 habits. See Figure 1 for a map of Bike Love program boundaries within which workers earn rewards. The Bike Love app also rewards travel to all 30 Caltrain stations for commuters who would be incentivized to bike or scooter to Caltrain and take the train to work. In 2025, 49% of the total number of transactions and 27% of the transaction values of redeemed rewards happened at Palo Alto-based businesses. This is another way that PATMA supports local businesses and multiplies program impact to benefit the local economy. Accomplishments PATMA’s sustainable transportation programs in 2025 resulted in a reduction in demand for 482 parking spaces around town, 2,933,038 fewer vehicle miles traveled, and 1,152 fewer tons of greenhouse gas emissions. The majority of these results were due to the transit pass program. See Figure 2 for the number of transit passes activated over the past five years. Figure 2: Transit Passes Activated 2019-20253 Three-Year Strategic Planning With the background context listed above, in December 2025, PATMA staff and board members met to discuss strategic planning for the next three years. Input gathered informed PATMA’s path 3 Note the reductions in the number of transit passes activated in January 2024 and January 2025. Caltrain GoPasses are good through the end of the year. PATMA asks pass holders to renew each December for the next year. Given the high turnover in the service sector, many do not renew for the next year as they may have switched to a job in a different city. Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 36  Packet Pg. 172 of 212  7 forward with goals (overall targets to achieve), strategies (plan of action), tactics (specific actions), and objectives (measurable outcomes) for FY2027-FY2029. Commute Survey Recent findings from the 920 workers who completed PATMA’s 2025 Commute Survey identified opportunities for more sustainable transportation mode shift. • Service and government sectors: 50.7% of service sector workers and 66.7% of government workers drive alone to work • Open to mode shift: 67.8% of workers surveyed who drive alone to work say they are open to switching to a sustainable commute • Near transit: 19% live less than one mile from a train or bus that runs from their home city to Palo Alto. Among survey respondents, 72% live in cities served by a train or bus that runs to Palo Alto. • Bike, electric scooter, or walk: 24% live less than five miles from work and are open to an active commute • Top 10 home cities among drive alone commuters who are willing to mode shift include: San Jose, Palo Alto, Redwood City, Sunnyvale, Mountain View, San Francisco, Santa Clara, San Mateo, Fremont, and East Palo Alto. • Bike racks: 200 survey respondents would like more bike parking outside of their work Figure 3 shows the home zip codes of survey respondents and their proximity to transit options. Green pins represent zip codes where one or more survey respondents live. Red circles show Caltrain stations and yellow circles represent BART stations. Figure 3: Survey Respondents’ Proximity to Transit Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 37  Packet Pg. 173 of 212  8 These insights as well as the following local and regional context, contribute to Year 1, Year 2, and Year 3 goals, strategies, tactics, and objectives. Year 1 (Jul 2026-Jun 2027) Local and Regional Context • The portion of Palo Alto’s greenhouse gas emissions from on-road transportation rose from 51.7% in 2022 to 56.8% in 2024. • The City of Palo Alto continues to enable Vision Zero and active mobility infrastructure that encourage more active commuting. • In spring 2026, live information will be available outside Downtown City garages about the number of parking spaces available inside to help drivers more easily find available parking. • Commercial and residential development efforts in Palo Alto will accelerate as the Planning Department processes proposed development applications to help meet the City’s Housing Element. • Caltrain continued its PassForward program for 2026, providing free Caltrain passes for PATMA to distribute to low wage workers. • Signatures are being gathered for a November 2026 ballot measure on mass transit funding. PATMA Goals • Grow PATMA’s impact by focusing mode shift efforts on workers for whom it would be easiest and most beneficial to switch from driving to train, bus or bike • Scale up the number of transit passes distributed and activated • Scale up the number of workers commuting by active mobility • Support S/CAP goals to reduce greenhouse gas emissions • Support local businesses to attract and retain workers PATMA Strategies • Develop or deepen relationships with managers at service sector and light office businesses • Develop or deepen relationships with community-based organizations that work on transportation, housing, climate and/or economic issues (Seamless Bay Area, Silicon Valley Bike Exchange, Silicon Valley Bicycle Coalition, Palo Alto Chamber of Commerce, Palo Alto Forward, Alta Housing, Avenidas) • Leverage expertise, connections, and resources with other local and regional organizations to increase program impacts: o Transit agencies (Caltrain, VTA, SamTrans, AC Transit) o Other nearby cities where large numbers of Palo Alto workers live (Redwood City, East Palo Alto, Mountain View, Fremont, and San Jose) o Metropolitan Transportation Commission Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 38  Packet Pg. 174 of 212  9 o City of Palo Alto (Utilities, Office of Transportation) o Local businesses o PATMA board members PATMA Tactics • Explore resurrecting a Scoop carpool matching program • Explore developing a vanpool matching program for low wage workers that super commute from the Central Valley or near Sacramento • Explore “transit-friendly work schedules” with local business managers • Market PATMA programs to hourly City of Palo Alto workers • Market PATMA programs to assisted living workers • Conduct spring active mobility marketing • Conduct summer program marketing • Promote “Refer a Co-worker” program outreach - workers receive a free $5 coffeehouse gift card if the coworker they refer receives a transit pass • PATMA board members reach out to their network to each let five managers at local businesses know about PATMA’s programs • Find transportation officials at five cities to let them know about PATMA’s programs -- Redwood City, East Palo Alto, Mountain View, San Jose, and Fremont -- and ask about communication channels that could help reach people who live in their city and work in Palo Alto • Conduct fall commute survey which also serves as a program marketing opportunity • Help City of Palo Alto parking program collect information from local business managers to inform parking policy changes PATMA Objectives • # freed up parking spaces • # workers using transit passes • # workers commuting by active mobility • # vehicle miles traveled reduced • # tons greenhouse gas emissions reduced • # commute survey respondents Year 2 (Jul 2027-Jun 2028) Local and Regional Context • In Year 2, results will be known from the Nov 2026 regional transit funding ballot measure which will provide critical funding for mass transit and yield service improvements • Possible upcoming changes in City of Palo Alto parking policies Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 39  Packet Pg. 175 of 212  10 • Follow-up from 2025 Urban Land Institute planning study for the Downtown Transit Center. An example is that Santa Clara Valley Transportation Authority is working to activate Palo Alto’s Downtown Transit Center with better lighting and a café • Possible availability of BayPasses for low wage Palo Alto workers PATMA Goals • Double PATMA’s positive impact from 2025 numbers: number of transit passes distributed, number of parking spaces freed up, and greenhouse gas emissions reduced • Identify and secure additional outside funding sources to purchase additional transit passes, bicycles, and bicycling rewards. PATMA Strategies • Negotiate BayPasses for low wage Palo Alto workers • Develop or deepen relationships with managers at service sector and light office businesses • Develop or deepen relationships with community-based organizations that work on transportation, housing, climate and/or economic issues • Be open to new opportunities to leverage expertise, connections, and resources with other local and regional organizations to increase program impacts: o Transit agencies (Caltrain, VTA, SamTrans, AC Transit) o Other regional cities where large numbers of Palo Alto workers live o Metropolitan Transportation Commission o City of Palo Alto (Utilities, Office of Transportation) o Other cities in the region o Local businesses o PATMA board members PATMA Tactics • Three seasonal marketing campaigns PATMA Objectives • # freed up parking spaces • # workers using transit passes • # workers commuting by active mobility • # vehicle miles traveled reduced • # tons greenhouse gas emissions reduced • # commute survey respondents Year 3 (Jul 2028-Jun 2029) Local and Regional Context Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 40  Packet Pg. 176 of 212  11 • Assuming the 2026 Bay Area ballot initiative passed providing more funding for transit agencies which allows them to increase service frequency • Mobility Hubs may be available around town • New parking policies may be in place • New sustainable transportation planning and payment apps may be available Goals • Further grow PATMA’s positive impact to reduce traffic congestion, demand for parking, and greenhouse gas emissions while supporting local businesses and workers. Strategies • Track developments in sustainable transportation planning and payment apps • Develop or deepen relationships with managers at service sector and light office businesses • Develop or deepen relationships with community-based organizations that work on transportation, housing, climate and/or economic issues • Be open to new opportunities to leverage expertise, connections, and resources with other local and regional organizations to increase program impacts: o Transit agencies (Caltrain, VTA, SamTrans, AC Transit) o Other regional cities where large numbers of Palo Alto workers live o Metropolitan Transportation Commission o City of Palo Alto (Utilities, Office of Transportation) o Other cities in the region o Local businesses o PATMA board members • Expand PATMA’s toolkit of information and incentives to encourage mode shift • Help expand clean transportation options available to workers in Palo Alto Tactics • Develop new case studies of workers who commute by transit or active mobility and promote • Test new technology sustainable transportation planning and payment options as they become available • Promote Mobility Hubs that are available Objectives • # freed up parking spaces • # workers using transit passes • # workers commuting by active mobility • # vehicle miles traveled reduced Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 41  Packet Pg. 177 of 212  12 • # tons greenhouse gas emissions reduced • # commute survey respondents Workplan Year 1 The flow of work over the course of FY2027 is shown in Figure 3. Figure 3: Year 1 Workplan Jul ‘26 Aug ‘26 Sep ‘26 Oct ‘26 Nov ‘26 Dec ‘26 Jan ‘27 Feb ‘27 Mar ‘27 Apr ‘27 May ‘27 Jun ‘27 Events X X X Market Transit Passes X X X X X X Commute Survey X X X Apply for Grant Funding X X X Deliver Commute Survey, Annual Report, and Strategic Plan reports X Market Active Mobility Programs X X X X X Budget Looking back at funding levels since PATMA’s inception in 2016, PATMA grew over several years and demonstrated cost-effective successes freeing up parking spaces, reducing greenhouse gas emissions, and reducing vehicle miles traveled until the pandemic. Figure 4 shows historic budget trends. Figure 4: PATMA Funding Since Inception Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 42  Packet Pg. 178 of 212  13 The PATMA baseline budget is $400,000. This level allows PATMA to continue with two part-time staff and pull in additional contractors on an ad hoc basis to support seasonal activities such as active mobility marketing in the spring and commute survey distribution in the fall. A status quo budget for FY2027 will allow PATMA to: • Perform marketing and outreach to target sectors • Develop or deepen relationships with business managers who are the gatekeepers to workers who could use PATMA’s programs and services • Conduct the annual commute survey • Maintain the number of parking spaces freed up, tons of greenhouse gas emissions reduced, and ease traffic congestion In 2025, the cost/user/year, or cost to free up a parking space, was $650 while in 2024 the cost/user/year was $672. This includes the cost to purchase transit passes, Lyft rides, and $5/day Bike Love rewards. Figure 5 provides three budget scenarios for PATMA’s projected expenses in FY2027. The $400,000 scenario represents a continuation of the restored budget PATMA realized in FY2026. The $375,000 budget would shrink the program to 400 parking spaces freed up. A smaller $350,000 budget would mean the number of parking spaces freed up would shrink further. Figure 5: Three Budget Scenarios for FY2027 Program Elements Expenses - $400,000 budget Expenses - $375,000 budget Expenses - $350,000 budget Transit Passes $262,504 $242,504 $217,504 Bike Love Rewards $45,242 $45,242 $45,242 Commute Survey $30,000 $25,000 $25,000 Refurbished Bicycles $5,200 $5,200 $5,200 Lyft Afterhours Rides Home $4,573 $4,573 $4,573 PATMA Administration $35,144 $35,144 $35,144 Business Expenses $17,337 $17,337 $17,337 Total $400,000 $375,000 $350,000 In the $375,000 budget scenario, PATMA would cut staff program hours, reduce marketing on transit passes and let the number of transit passes distributed fall, and collect fewer commute survey responses. In the $350,000 budget scenario, PATMA would cut back further on staff hours, reduce marketing efforts, purchase fewer transit passes, and collect a smaller number of commute survey responses. As circumstances change, PATMA has the ability to adjust income and expenses through various financial levers: reducing labor costs, reducing program expenses, requesting additional GoPasses from Caltrain and large employers in the area, and increasing grant writing and philanthropic fundraising. PATMA will continue to operate in a lean, efficient manner and use our budget effectively to maximize impact. Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 43  Packet Pg. 179 of 212  14 Conclusion Many public and private organizations in the Bay Area are working hard to facilitate a future seamless, integrated low-carbon transportation system that will lower personal transportation costs and reduce GHG emissions. PATMA will continue to monitor developments in these areas and adjust our programs accordingly to best serve Palo Alto businesses. In support of the local economy, over the next three years PATMA will look for opportunities to help more workers shift to a sustainable commute as we raise awareness about the benefits of transit and active mobility commutes, offer information about sustainable transportation options, and provide programs and incentives for mode shift. The Palo Alto TMA runs efficiently with two part-time staff members and the guidance of a dedicated Board. We are proud of our positive impact as we implement programs that support the City Council’s goals and the City’s policies. PATMA has ambitious plans to do more although growing our positive impact will require more resources. This is the main challenge we face in the next few years. We will continue to look for additional outside funding that will help us buy more bus passes, refurbished bicycles, and provide Bike Love rewards. Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 44  Packet Pg. 180 of 212  2025 COMMUTE SURVEY REPORT for and PATMA Board Members Cedric de la Beaujardiere, resident (Chair) Rob George, Philz Coffee (Treasurer) Shannon McEntee, resident (Secretary) Ria Lo, City of Palo Alto Sebastian Mafla, Sheraton Alejandra Mier, Coupa Cafe Steven Lee, resident December 2025 Prepared by: Justine Burt Lucey Gorrill ALTRANS TMA Inc 302 Toyon Ave, F-410 San Jose, CA 95127 www.altrans.net Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 45  Packet Pg. 181 of 212  Table of Contents Executive Summary .................................................................................................................................... 1 Introduction ............................................................................................................................................... 3 Survey Population ...................................................................................................................................... 3 Survey Methodology .................................................................................................................................. 6 Results ........................................................................................................................................................ 6 Key Insights .............................................................................................................................................. 16 Conclusion ................................................................................................................................................ 18 Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 46  Packet Pg. 182 of 212  1 2025 Commute Survey Report Executive Summary In September and October 2025, the Palo Alto Transportation Management Association (PATMA) team surveyed workers in commercial areas of Palo Alto to learn about their commute habits and preferences. The team conducted on-line and in-person surveys in English, Spanish, Mandarin, and Vietnamese beginning with emailing and texting then following up with door-to-door canvassing. This document provides highlights from the survey findings. The three main objectives of the commute survey were to 1) learn how workers commute, 2) determine which workers are open to shifting their commute from single-occupancy vehicles to mass transit or active mobility options, and 3) raise awareness of PATMA’s programs. Based on the 920 completed surveys, Figure 1 shows the percentage of respondents from the four main sectors into which PATMA classifies workers: technology, service, light office, and government. Figure 1: Survey Respondents by Sector Technology 27% Service 44% Light Office 5% Government 24% Technology Service Light Office Government Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 47  Packet Pg. 183 of 212  2 2025 Commute Survey Report Figure 2 below provides the primary mode workers use to commute each week. The survey found that overall, 54.8% of workers surveyed used a single-occupancy vehicle (SOV) as their primary commute mode in 2025, down from 62% in 2024. Figure 2: Primary Commute Mode of Survey Respondents By separating out commute mode by work sector, Figure 3 illustrates sector s with higher and lower drive alone rates. Figure 3: Commute Mode by Work Sector 54.8% 33.8% 5.2%4.0%1.6%0.5% 0 100 200 300 400 500 600 Drive alone Transit Carpool Bike Telecommute Walk Nu m b e r o f P a r t i c i p a n t s 50 . 7 % 36 . 3 % 5. 8 % 4. 2 % 2. 3 % 0. 5 % 0. 2 % 40 . 0 % 50 . 0 % 6. 7 % 3. 3 % 0. 0 % 0. 0 % 0. 0 % 52 . 5 % 38 . 8 % 3. 7 % 2. 9 % 1. 2 % 0. 4 % 0. 4 % 66 . 7 % 20 . 1 % 6. 8 % 5. 0 % 0. 9 % 0. 5 % 0. 0 % 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Drive alone Transit Carpool Bike Walk Telecommute Other Service Light Office Technology Government Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 48  Packet Pg. 184 of 212  3 2025 Commute Survey Report With respect to PATMA’s mission, data collected in the 2025 commute survey illuminates opportunities to reach more workers in order to help reduce traffic congestion, reduce demand for parking, support small businesses, lower greenhouse gas emissions, and address social equity issues. Introduction In 2025, the Palo Alto Transportation Management Association (PATMA) conducted its tenth annual employee commute survey as required by the funding agreement between PATMA and the City of Palo Alto (COPA). PATMA contracted with ALTRANS TMA Inc. to conduct the survey and performed outreach in September and October 2025. The survey was designed to identify how Palo Alto employees working in the commercial areas of Palo Alto - University Avenue (Downtown), California Avenue (Cal Ave), El Camino Real, the Stanford Mall, the Charleston Middlefield shopping center, and along San Antonio Road - commute to work, identify individuals currently driving alone who are open to shifting to a sustainable commute mode, and raise awareness of PATMA’s program offerings. Survey Population According to the most recent U.S. Census data, the total worker population in Palo Alto was 109,011 in 2022. The darker shaded areas of Figure 4 show where work centers are clustered around Downtown, along El Camino Real, and near San Antonio close to Highway 101. Figure 4: Density of Workers in Palo Alto Source: U.S. Census OnTheMap, 2022 Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 49  Packet Pg. 185 of 212  4 2025 Commute Survey Report The U.S. Census organizes sectors using the North American Industrial Classification System (NAICS) categories. Figure 5 shows the number of workers by NAICS codes. Figure 5: Palo Alto Workers by Sector NAICS Sector Number of Employees Percentage Agriculture, Forestry, Fishing, and Hunting 5 0.0% Mining, Quarrying, Oil and Gas Extraction 1 0.0% Utilities 282 0.3% Construction 881 0.8% Manufacturing 5,152 4.7% Wholesale Trade 971 0.9% Retail Trade 3,991 3.7% Transportation and Warehousing 2,217 2.0% Information 18,860 17.3% Finance and Insurance 4,283 3.9% Real Estate and Rental and Leasing 1,389 1.3% Professional, Scientific, and Information 23,575 21.6% Management of Companies and Enterprises 3,049 2.8% Administration & Support, Waste Management and Remediation 1,915 1.8% Educational Services 3,420 3.1% Healthcare and Social Assistance 30,187 27.7% Arts, Entertainment, and Recreation 831 0.8% Accommodation and Food Services 4,931 4.5% Other Services (excluding Public Administration) 2,315 2.1% Public Administration 756 0.7% Source: U.S. Census OnTheMap, 2022 PATMA organizes NAICS sectors into four employer categories – service, light office, technology, and government – and offers programs to workers in all but the technology sector. Figure 6 shows which NAICS code sectors PATMA includes in the service, light office, technology, and government categories. Figure 6: NAICS Codes and PATMA Classification NAICS Code NAICS Sector Name PATMA Classification 11 21 22 23 31-33 42 44-45 48-49 Agriculture, Forestry, Fishing and Hunting Mining, Quarrying, and Oil and Gas Extraction Utilities Construction Manufacturing Wholesale Trade Retail Trade Transportation and Warehousing Service Service Government Service Service Service Service Service Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 50  Packet Pg. 186 of 212  5 2025 Commute Survey Report NAICS Code NAICS Sector Name PATMA Classification 51 52 53 54 55 56 61 62 71 72 81 92 Information Finance and Insurance Real Estate and Rental and Leasing Professional, Scientific, and Technical Services Management of Companies and Enterprises Administrative and Support and Waste Management and Remediation Services Educational Services Health Care and Social Assistance Arts, Entertainment, and Recreation Accommodation and Food Services Other Services (except Public Administration) Public Administration Technology Light Office Light Office Technology Light Office Light Office Light Office Service Light Office Service Service Government Source: NAICS Association After sorting Census data for the number of workers in the four categories for statistical purposes, Figure 7 shows the number of workers in each category and the total worker population in Palo Alto. Figure 7: Number of Workers in Four Sectors PATMA Organization Category Number of Employees % Share Service 50,651 46% Light Office 14,887 14% Technology 42,435 39% Government 1,038 1% Total 109,011 Subtracting the 29,000 worker population at the Stanford Research Park, which has its own transportation demand management programs, leaves us with a worker population of 80,011. After cleaning the survey data of duplicate responses and incomplete surveys, there were a total of 920 complete surveys of which: • 404 respondents were service sector workers (44%) • 50 were light office workers (5%) • 247 were tech workers (27%) • 219 were government staff (24%) This year’s response rate was higher than the four previous years the survey was conducted. The number of respondents for each of the ten survey years is shown in Figure 8. Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 51  Packet Pg. 187 of 212  6 2025 Commute Survey Report Figure 8: Number of PATMA Commute Survey Responses by Year Year Number of Respondents 2025 920 2024 885 2023 738 2022 511 2021 551 2019 1,471 2018 496 2017 892 2016 829 2015 1,173 Compared to 2024, stronger working relationships with managers in the service and technology sectors in 2025 helped boost response numbers. Survey Methodology In September and October 2025, the PATMA team reached out to businesses and organizations to administer the survey. Survey questions asked about the primary travel mode workers use to commute, their home city, employer, income level, and openness to sustainable commute options. The survey was administered through the Fillout.com platform which respondents accessed via personal smartphones through a QR code, PATMA’s electronic tablets, or their computers. Fillout’s survey platform offers skip logic and survey branching to optimize question relevance to different respondents. Paper copies of the surveys in English and Spanish were distributed to managers at downtown hotels who collected responses from their staff. Electronic surveys in Mandarin and Vietnamese were administered at selected businesses. Block-by-block, door- to-door canvassing resulted in a dataset representing businesses and organizations in several commercial areas. Door-to-door outreach was bolstered by mass texting and email follow-up to business contacts. As noted above, the PATMA team secured 920 responses from a citywide worker population of 80,011. With a 95% confidence level and a sample size representing 1.1% of the population, the margin of error for this data is ±3%. Results Data collected in this survey shed light on several topics: • how people commute to work, • where they are coming from, Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 52  Packet Pg. 188 of 212  7 2025 Commute Survey Report • considerations that most influence their decision about how to commute, and • which workers could commute using one main transit or active mobility option. The following figures show results for each question. Q1. In which city and zip code do you live? Among survey respondents this year, the top 10 home cities are shown in Figure 9. Figure 9: Top 10 Cities of Survey Respondents Home City Number Survey Respondents 1 San Jose 180 2 Palo Alto 90 3 Redwood City 74 4 Sunnyvale 65 5 Mountain View 64 6 San Francisco 48 7 Santa Clara 41 8 San Mateo 36 9 Fremont 35 10 East Palo Alto 31 Note that 72% of respondents live in cities served by a train or bus that runs to Palo Alto. Figure 10 maps the home zip codes of survey respondents in San Francisco Bay Area1 counties. 1 The Bay Area refers to the nine counties touching the San Francisco Bay. Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 53  Packet Pg. 189 of 212  8 2025 Commute Survey Report Figure 10: Number of Respondents by Zip Code Some survey respondents live beyond the nine county Bay Area near Sacramento, in the North Bay, and in the Central Valley. Figure 11 shows the average distance of commutes by sector. Figure 11: Average Commute Distance by Sector (miles) 26.1 23.2 19.9 16.9 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Government Technology Light Office Service Number of Miles Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 54  Packet Pg. 190 of 212  9 2025 Commute Survey Report Service sector workers live closer to work in contrast to government workers that on average commute from farther away. Q2. What is the name of your employer? (This information will help us analyze commuting patterns for the four main types of employers [service, technology, light office, and government] in Palo Alto.) Employer names of survey respondents were organized into four main sectors of employers in Palo Alto, as seen in Figure 12. Figure 12: Survey Respondents by Sector Note that the number of respondents from technology companies located in Downtown, Amazon and Salesforce, is 74% higher this year than last. With Return to Office encouragement from management and corporate concern about greenhouse gas emission reductions, both tech employers urged their employees to fill out PATMA’s 2025 survey. Technology 27% Service 44% Light Office 5% Government 24% Technology Service Light Office Government Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 55  Packet Pg. 191 of 212  10 2025 Commute Survey Report Q3. How do you usually travel to work? If you use more than one type of transportation, choose the one used for the longest distance of your trip. Many commuters use more than one type of transportation for commuting. To be able to compare this year’s data with previous years’, we asked people about the main commute mode they used for the longest segment of their trip. Figure 13 provides information about the primary commute mode. Figure 13: Primary Commute Mode Figure 14 divides this data by sector for 2025 to allow comparisons between service, light office, tech, and government sectors. Figure 14: Commute Mode by Sector, 2025 54.8% 33.8% 5.2%4.0%1.6%0.5% 0 100 200 300 400 500 600 Drive alone Transit Carpool Bike Telecommute Walk Nu m b e r o f P a r t i c i p a n t s 50 . 7 % 36 . 3 % 5. 8 % 4. 2 % 2. 3 % 0. 5 % 0. 2 % 40 . 0 % 50 . 0 % 6. 7 % 3. 3 % 0. 0 % 0. 0 % 0. 0 % 52 . 5 % 38 . 8 % 3. 7 % 2. 9 % 1. 2 % 0. 4 % 0. 4 % 66 . 7 % 20 . 1 % 6. 8 % 5. 0 % 0. 9 % 0. 5 % 0. 0 % 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Drive alone Transit Carpool Bike Walk Telecommute Other Service Light Office Technology Government Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 56  Packet Pg. 192 of 212  11 2025 Commute Survey Report A comparison of commute modes over the past ten years is shown in Figure 15. Figure 15: Changes in Commute Mode, 2015-2025 Q4 If you drive alone to work, which of the following sustainable commute modes are you open to taking? Note that respondents could choose more than one option, and only respondents who said their main commute mode was by single-occupancy vehicle were given this question. Figure 16: Sustainable Commute Options Drivers Considering 57 % 56 % 53 % 49 % 52 % 60 % 55 % 56 % 62 % 55 % 18 % 18 % 20 % 27 % 25 % 9% 26 % 24 % 24 % 34 % 5%6% 8%9% 5% 2% 5% 7% 6% 5% 15 % 15 % 12 % 9%9% 7% 12 % 10 % 6% 5%5%5% 7% 6%8% 23 % 2% 1%1%2% 2015 2016 2017 2018 2019 2021 2022 2023 2024 2025 Drive Alone Transit Carpool Bike/Walk Telecommute 42.3% 11.8% 4.3% 9.6% 0.6% 0.6% 27.0% 3.9% 0 50 100 150 200 250 Train or bus Carpool Vanpool Bicycle Walk Telecommute None, I prefer to drive Not Applicable Number of Participants Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 57  Packet Pg. 193 of 212  12 2025 Commute Survey Report Note that of 920 survey respondents, 492 drive alone to work and among those, 42% were open to transit, 12% carpool, 4% vanpool, 10% bicycle, <1% walk, <1% telecommute, and 27% prefer to drive. Sorting zip codes of respondents who answered they were open to a sustainable commute and mapping the top 15 yields the graph below. Figure 17: Top 15 Zip Codes with Respondents Driving Alone and Open to a Sustainable Commute Many of these single-occupancy vehicle commuters may be able to commute by Caltrain, Caltrain and VTA, Caltrain and SamTrans, Dumbarton Express Bus, bicycle, e-bicycle, or e- scooter. Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 58  Packet Pg. 194 of 212  13 2025 Commute Survey Report Q5. If you drive alone to work, is your home located less than one mile from a Caltrain station, VTA 22/522 bus stop, SamTrans ECR bus stop, or Dumbarton Express bus stop? Figure 18: Live <1 Mile from Sustainable Transit Option Nearly 15% of respondents who drive alone to work report living close to a transit option that runs directly to Palo Alto. Q6. If you live less than 5 miles from work, are you open to switching to an active mobility mode (bicycle, electric bicycle, scooter, electric scooter, or other personal mobility device) for commuting? Figure 19: Live <5 Miles from Work and Open to Active Commute 258 175 55 8 0 50 100 150 200 250 300 No Yes Not Sure Not Applicable Number of Participants 14.7% 13.5% 0.4% 2.5% 9.1% 53.5% 0 100 200 300 400 500 600 Yes No I already do I already do sometimes I'm thinking about it Not Applicable Number of Participants Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 59  Packet Pg. 195 of 212  14 2025 Commute Survey Report Q7. What is most important to you when choosing how to commute to work? (select up to 3) Figure 20: Most Important Considerations When Choosing How to Commute “Travel time and schedule” predominates the list of factors workers consider when deciding how to commute. Note that survey participants were able to choose up to three answers. Q8. Does your workplace need additional bike racks outside? Figure 21: Need Additional Bike Racks 14.8% 35.5% 69.0% 19.7% 43.9% 14.1% 33.2% 14.3% 9.1% 0 100 200 300 400 500 600 700 Accessibility Cost Travel time or schedule Stress reduction Comfort and safety Ability to make stops to and from Flexibility Environmental impact Amount of things I need to carry Number of Participants 23.5% 69.9% 1.6% 0.2% 0 100 200 300 400 500 600 700 Yes No Not Sure Not Applicable Number of Participants Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 60  Packet Pg. 196 of 212  15 2025 Commute Survey Report Given that 217 out of 920 workers who answered this survey question said they would like additional bike racks, there is an opportunity for follow-up with managers in Palo Alto. Q9. What is your annual salary? Figure 22: Is Your Annual Salary Less Than $100,000 or More? Figure 22 shows that 61% of respondents earn less than $100,000/year which makes them eligible for PATMA’s free transit passes, refurbished bicycles, and after hour Lyft credits. Note that government workers were asked a different question about income and are not included in this graph. Q10. Are there any issues or concerns you would like to share about your commute? The answers to this open-ended question provide PATMA with insights to improve our programs, accomplish more mode shift, or share questions and concerns in the aggregate with our contacts at tech companies and City government. Concerns raised multiple times by respondents are grouped by topic in Figure 23. Under $100,000 61% Over $100,000 39% Under $100,000 Over $100,000 Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 61  Packet Pg. 197 of 212  16 2025 Commute Survey Report Figure 23: Respondent Concerns About Their Commute Topic # Comments on Topic Sample Comment Difficulties while driving: traffic, parking, cost of gas and tolls, road surface quality 36 "I am stuck in over an hour of traffic on the way home to San Francisco." Timeliness of transit: late, infrequent service, not reliable 28 "Need more bus frequency between East Palo Alto and Palo Alto downtown." Limited or no transit near home 15 "There is no direct route from San Ramon to my workplace near the Caltrain station." Difficult to get to bus or station 17 "The Caltrain and VTA stops are not within walkable distance from Milpitas." Safety, cleanliness, and comfort of transit and stations 18 "There should be more security and lighting at the Palo Alto train station." Housing affordability near work 2 "I live in San Jose with family since renting alone is a bit much for my budget. Otherwise, I’d rather live closer to work if I could afford it." Bike safety concerns 16 "No bike lanes near my house makes biking from East Palo Alto to Palo Alto a bit dangerous." Parking issues: cost or availability 29 "Parking is the biggest problem. Constantly moving cars across Palo Alto parking lots is time consuming." Pedestrian safety concerns 3 "Drivers looking to avoid traffic along major streets like University Ave will drive at illegally high speeds through the neighborhoods that run parallel to University (like Hawthorne Ave), making it less safe for pedestrians and families that live in these areas." Transporting children 3 "I commute over a bridge with my one year old daughter who attends day care in Palo Alto." Compliments gathered from the survey comments section include: • “I am a business owner and my staff loves the train passes and I love knowing they can get here safely and not take up customer parking spaces or have to move their cars around during the day. Thanks!!!!” • “Thanks for putting VTA back to work!!! When they were on s trike, I had to walk one hour from the Caltrain station to home!” • “I am enjoying the Caltrain pass. And meeting new people on the train going and coming from work.” • “This program helps me in many ways. I am able to come to work stress free, I get some steps in for my health and it is helping me financially. I love this program. Getting up to take the train helps me mentally too because it gets me out in the beautiful weather.” • “I'm very grateful for the Caltrain benefit! Thank you!” Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 62  Packet Pg. 198 of 212  17 2025 Commute Survey Report • “I am very happy with the program.” • “I’ve been using the Palo Alto TMA service so I am really enjoying my bus ride to Union City.” • “I bike to Caltrain from my house to 4th & Townsend, and catch Caltrain. Huge fan of the new electric trains. They are much faster, more comfortable, quieter, brighter and definitely more reliable. As someone in the retail sector, the GoPass program has been a huge boom to me.” • “Thanks to this program I am driving less and becoming better with time management.” • “Commuting to Palo Alto Downtown is made very easy. I have multiple options (Caltrain or SamTrans ECR) and I come and go as I please. It's really fantastic thank you team!” • “Commuting by bike to Salesforce is great - they have lots of bike racks.” • “Please continue with Palo Alto Link.” • “Agradezco al programa por facilitarme la movilidad hacia mi trabajo. (I am grateful to the program for facilitating my commute to work.)” • “Me siento muy agradecido con esta ayuda que nos estan brindando. (I feel very thankful for this help you are providing us.)” In 2025, the City of Palo Alto began the BayPass program for salaried City staff with benefits. Feedback includes: • "I really appreciate having the Caltrain commuter pass. Thank you!" • "I love the BayPass!" • "No concerns, I really enjoy free access to BART and Caltrain for work and pleasure." • "I am very happy in the last year that the City has implemented the Clipper BayPass! I love the unlimited free travel on public transport. It works seamlessly and I am very grateful!" • "I love-love-love the Clipper BayPass! So wonderful." • "Thanks for BayPass" • "I bike from Midtown Palo Alto. It's great!" • "Sometimes the Caltrain is delayed which is challenging when I have early morning meetings but otherwise living close to work and taking the train every day is very convenient." Key Insights The following insights gleaned from data and comments lead PATMA to believe that additional mode shift opportunities exist among workers in Palo Alto. • Overall, the drive alone rate fell from 62% last year to 54.8% this year • Highest drive alone rates are among government employees even though their drive alone rate of 66.7% in 2025 fell from 72% in 2024. • 72% of respondents live in cities served by a train or bus that runs to Palo Alto Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 63  Packet Pg. 199 of 212  18 2025 Commute Survey Report • Service sector workers tend to live closer to work and government workers tend to live farthest away • 136 respondents (14.7%) live less than five miles from work and are open to an active commute • Travel time or schedule is the overarching consideration when deciding how to commute • 217 respondents (23.5%) said they needed more bike parking at work • Barriers to a sustainable commute include perceptions about the timeliness of trains and buses, safety of stations and stops, safety of biking and scootering on roads with cars, and demands outside of work on their time. These data point to the potential for mode shift among workers who live less than five miles from work or who can take one train or bus to work in Palo Alto. Conclusion Given the openness of respondents to sustainable commute modes and the proximity of their home or workplace to transit options, survey results illuminate opportunities to mode shift more workers who commute to Palo Alto by providing information, equipment, and incentives. Some people would benefit from more availability of refurbished bikes, electric bikes, and electric scooters to connect to transit or for commutes of less than five miles. Others would benefit from information about real time train and bus arrivals, Guaranteed Ride Home availability, rapid bus schedules and routes, and safer bicycle routes between home and work. Item B Attachment A - 2025 Palo Alto TMA Annual Report, 2027-29 Strategic Plan, and 2025 Commute Survey        Item B: Staff Report Pg. 64  Packet Pg. 200 of 212  City Council Staff Report Report Type: SPECIAL ORDERS OF THE DAY Lead Department: Police Meeting Date: May 11, 2026 Report #:2605-6328 TITLE Proclamation Recognizing National Police Week as May 10-16, 2026 and National Peace Officers' Memorial Day as May 15, 2026 ATTACHMENTS Attachment A: Proclamation Recognizing National Police Week and National Peace Officers' Memorial Day 2026 APPROVED BY: James Reifschneider, Police Chief Item AA1 Item AA1 Staff Report        Item AA1: Staff Report Pg. 1  Packet Pg. 201 of 212  National Police Week, May 10-16, 2026 and National Peace Officers’ Memorial Day, May 15, 2026 WHEREAS, the United States Congress and President of the United States have designated May 15, 2026 as National Peace Officers’ Memorial Day and the week in which it falls as Police Week; and WHEREAS, the members of the Palo Alto Police Department play an essential role in safeguarding the rights and freedoms of its citizens; and WHEREAS, it is important that all citizens know and understand the problems, duties, and responsibilities of their police department, and that members of our police department recognize their duty to serve the people by safeguarding life and property, by protecting against violence or disorder, and by protecting the innocent against deception and the weak against oppression or intimidation; and WHEREAS, the Palo Alto Police Department has grown to be a modern and progressive law enforcement agency which unceasingly provides a vital public service; and WHEREAS, the City of Palo Alto asks all citizens to join in honoring the police officers, past and present, who by their faithful and loyal devotion to their responsibilities have rendered a dedicated service to their communities and, in doing so, have established for themselves an enviable and enduring reputation for preserving the rights and security of all citizens. NOW, THEREFORE I, Vicki Veenker, Mayor of the City of Palo Alto on behalf of the entire City Council do hereby proclaim the week of May 10-16, 2026, as Police Week and urge all citizens of Palo Alto to observe Friday May 15, 2026 as Peace Officers’ Memorial Day in honor of those peace officers who, through their courageous deeds, have lost their lives or have become disabled in the performance of duty. Presented: May 11, 2026 ______________________________ Vicki Veenker Mayor Proclamation Item AA1 Attachment A - Proclamation Recognizing National Police Week and National Peace Officers' Memorial Day 2026        Item AA1: Staff Report Pg. 2  Packet Pg. 202 of 212  City Council Staff Report From: City Manager Report Type: STUDY SESSION Lead Department: Administrative Services Meeting Date: May 11, 2026 Report #:2512-5685 TITLE FY 2027 Proposed Operating and Capital Budget - Finance Committee Update and Council Budget Discussion. CEQA Status – Not a project RECOMMENDATION This study session is intended to facilitate next steps in the FY 2027 Budget process. I The study session also provides an opportunity for the Finance Committee to discuss with the City Council the status of FY 2027 budget review in preparation for the Committee’s budget wrap-up work on May 19, 2026. Staff recommends that the City Council: Review the current proposed budget adjustments to the Fiscal Year 2027 Proposed Operating and Capital Budgets and Municipal Fee Schedule in alignment with the work completed by the Finance Committee on May 5, 2026 and May 6, 2026; Review the areas of focus for the City Council as identified by the Finance Committee and staff; and Provide feedback to the Finance Committee on any areas of focus or additional deliberations to review as part of the Budget Wrap-up Meeting scheduled for May 19, 2026. ANALYSIS Finance Committee reviewed the FY 2027 Proposed Operating and Capital Budgets and Municipal Fee Schedule at the Finance Committee Meeting on May 5, 2026 and May 6, 2026. This report supports the discussion on the Finance Committee proposed adjustments to the FY 2027 budgets and/or Municipal Fee schedule. Item 4 Item 4 Late Packet Report        Item 4: Staff Report Pg. 1  Packet Pg. 203 of 212  FY 2027 Budget documents are referenced below: FY 2027 City Manager Proposed Budget Transmittal Letter1 FY 2027 Proposed Operating Budget2 FY 2027 Proposed CIP Budget3 Budget Transmittal to City Council (May 4, 20264) - Agenda Report Finance Committee Review of Proposed Budgets (May 55 and May 6, 20266) Agenda Report Finance Committee Review of Proposed Municipal Fee (May 6, 2026) Agenda Report FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW 1 https://www.paloalto.gov/files/assets/public/v/1/administrative-services/city-budgets/fy-2027-city- budget/proposed/fy-2027-proposed-transmittal-letter_online.pdf 2 https://www.paloalto.gov/files/assets/public/v/1/administrative-services/city-budgets/fy-2027-city- budget/proposed/fy-2027-proposed-operating-budget_revised.pdf 3 https://www.paloalto.gov/files/assets/public/v/1/administrative-services/city-budgets/fy-2027-city- budget/proposed/fy-2027-proposed-capital-budget-book_online.pdf 4 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=18709 5 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=18568 6 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=18574 Item 4 Item 4 Late Packet Report        Item 4: Staff Report Pg. 2  Packet Pg. 204 of 212  ATTACHMENTS APPROVED BY: Item 4 Item 4 Late Packet Report        Item 4: Staff Report Pg. 3  Packet Pg. 205 of 212  1 Nonprofit Funding Levels Options for Consideration Option A: No Additional Funding Option B: Keep Total Nonprofit $’s Flat at FY2026 Level $6.74M Option C: Add Specific Additional Direct Allocations Option D: Maintain FY2026 Phase I Grant Funding Levels Includes: •FY27 budget direct allocations* ($78,280) •$111k partially funds add’l Direct Allocations** •No funding for NPW Phase I grant process Includes: •FY27 budget direct allocations* ($78,280) •$165,418 partially funds add’l Direct Allocations** •No funding for NPW Phase I grant process Includes: •FY27 budget direct allocations* ($78,280) •$235k fully funds add’l Direct Allocations** •No funding for NPW Phase I grant process Includes: •FY27 budget direct allocations* ($78,280) •$235k fully funds add’l Direct Allocations** •$193,366 to allocate to NPW Phase I grant process Funding Gap $0 $54,418 $124,000 $317,366 *FY2027 Proposed Budget Direct Allocations (Ongoing) = Environmental Volunteers ($10,780), Neighbors Abroad ($17,500) & YCS YCI ($50k) **Additional Direct Allocations = Magical Bridge ($150k), Cal Ave Music/PARF ($40k) & UNAFF ($45k) Attachment AItem 4 Attachment A - Nonprofit Funding Levels Options for Consideration        Item 4: Staff Report Pg. 4  Packet Pg. 206 of 212  1 Nonprofit Funding Levels Options for Consideration Option A: FY 2027 Proposed Budget Option B: Add $54,418 Option C: Add $124,000 Option D: Add $317,366 Description Proposed budget assumptions Keep Total Nonprofit $’s Flat at FY2026 Level $6.74M Make Specific Additional Allocations Maintain FY2026 Phase I Grant Funding Levels HSRAP & CDBG & Operating Services $6,492,914 $942,971 HSRAP + $152k CDBG + $5,397,943 Operating Services (includes $200k for allcove) FY 27 Budget Direct Allocations $78,280 Ongoing $: Environmental Volunteers ($10,780), Neighbors Abroad ($17,500) & YCS YCI ($50,000) Additional Direct Allocations**$111,000 For partial direct allocations &/or Phase I $165,418 (Partial funds) ($111k + $54,418) $235,000 ($111k + $124k) $235,000 ($111k + $124k) $0 $0 $193,366 (remainder of the $317k)NPW Phase I grant process Total Nonprofit $’s $6,682,194 $6,736,612 $6,806,194 $6,999,560 Funding Gap from Proposed Budget $54,418 $124,000 $317,366 **Additional Direct Allocations $235k = Magical Bridge ($150k), Cal Ave Music/PARF ($40k) & UNAFF ($45k) Attachment AItem 4 Attachment A - Nonprofit Funding Levels Options for Consideration        Item 4: Staff Report Pg. 5  Packet Pg. 207 of 212  Attachment B:CIP – KPIs: track delays, cost increase s, & deferred spending by program area. Original % Reappropriated Item 4 Attachment B - CIP - KPIs track delays, cost increases, & deferred spending by program area        Item 4: Staff Report Pg. 6  Packet Pg. 208 of 212  Project Deferrals by Program Area and Project Attachment B:CIP – KPIs: track delays, cost increases, & deferred spending by program area. Item 4 Attachment B - CIP - KPIs track delays, cost increases, & deferred spending by program area        Item 4: Staff Report Pg. 7  Packet Pg. 209 of 212  Cost Increases by Program Area and Project Attachment B:CIP – KPIs: track delays, cost increases, & deferred spending by program area. Item 4 Attachment B - CIP - KPIs track delays, cost increases, & deferred spending by program area        Item 4: Staff Report Pg. 8  Packet Pg. 210 of 212  Cost Increases by Program Area and Project (continue) Attachment B:CIP – KPIs: track delays, cost increases, & deferred spending by program area. Item 4 Attachment B - CIP - KPIs track delays, cost increases, & deferred spending by program area        Item 4: Staff Report Pg. 9  Packet Pg. 211 of 212  Attachment C Public Tree Maintenance Objectives For public tree maintenance, the main objectives for tree work associated with our target 7- year pruning cycle are: • Public Safety. This involves tree work to achieve hazard reduction, pedestrian clearance, vehicle clearance, and sign or street light visibility. For some species and situations this may also involve crown reduction and/or end weight reduction pruning. • Tree Health. This work focuses on the removal of dead, damaged, or diseased tree parts. This may also include removal of basal sprouts and defects such as crossing branches. • Tree Longevity. This work focuses on structural pruning to ensure long term tree stability and growth. The goal of the maintenance program is to keep the tree growing according to its natural form whenever possible. Most tree species do best when allowed to grow based on their genetics. This generally results in fewer long-term issues, and lower overall long-term maintenance costs. Correction of major issues when a tree is young and then minimal regular maintenance to catch new issues involving the main objectives of public safety, tree health or tree longevity as they arrive is our core maintenance strategy. In order to include aesthetics as a stand-alone maintenance objective, a significant budget increase would be required for the Street Tree Maintenance contract. Reducing the pruning cycle down to a 3- or 4-year return time would allow for an increased level of service. At that higher level of service an increase in proactive maintenance would allow for greater attention to smaller details, leading to more emphasis on aesthetics. This would catch potential tree issues when small, and corrective measures would be more minimal than if they occurred during a 7-year return time. Purely aesthetic pruning tends to lead to artificially perfect trees, requiring even more maintenance than a 3-year cycle could provide to maintain the forced shape. An example of this level of maintenance would be the urban canopy at Disneyland or other similar highly manicured resort destinations. It should be noted that the Electric Line Clearance Tree Trimming Contract is part of a separate program. That contract has a much narrower scope of work and does not provide whole tree maintenance as part of the scope for either private or public trees that require line clearance pruning. The main objectives for that work focus primarily on compliance with state regulations on clearance distance and public safety. Item 4 Attachment C - Public Tree Maintenance Objectives        Item 4: Staff Report Pg. 10  Packet Pg. 212 of 212