HomeMy WebLinkAbout2026-06-01 City Council Agenda PacketCITY COUNCIL
Regular Meeting
Monday, June 01, 2026
Council Chambers & Hybrid
5:30 PM
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.
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 June 01, 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 (5:30 - 5:40 PM)
1.Proclamation Honoring June 2026 as LGBTQIA+ Pride Month Late Packet Report added
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (5:40 - 6:10 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 (6:10 - 6:20 PM)
Members of the public may not speak to the item(s).
STUDY SESSION (6:20 - 7:20 PM)
2.Study Session on Flock Automated License Plate Recognition Technology; CEQA status –
categorically exempt.
CONSENT CALENDAR (7:20 - 7:25 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.
3.Approval of Minutes from May 11 and May 18, 2026 Meeting
4.Recommendation from Policy and Services Committee to City Council to Indefinitely
Defer Both Expansion of the Rental Registry Program to Properties with Two or Fewer
Units and Further Consideration of a Possible Rent Stabilization Ordinance. CEQA:
Exempt pursuant to CEQA Guidelines Section 15061(b)(3).
5.Approval of and Authorization to execute Purchase Orders with Jensen Precast and
Oldcastle Infrastructure for the Purchase of Electric Utility Underground Boxes Not to
Exceed $800,000 per year, for a Total Aggregate Not-to-Exceed Amount of $4,000,000 for
Five Years; CEQA Status – Not a Project.
6.Approval of Purchase Order C27197327 with Carahsoft Technology Corporation to
Procure DocuSign eSignature Software, Utilizing OMNIA cooperative contract no.
R240303 for a One-Year Term for a Total Not-To-Exceed Amount of $145,180; CEQA
2 June 01, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas.
Status - Not a Project
7.Approval of an Extension to Building Permit 18000-00536 for 429 University Ave; CEQA
status – Mitigated Negative Declaration (ENV20718).
8.Approval of Professional Services Contracts with Concourse Tech Inc., Contract No.
C26195689, and Prospect Silicon Valley, Contract No. C26195690, to Support Commercial
Efficiency and Electrification Programs for a Term of Three (3) Years for a Total Combined
Not to Exceed Amount of $898,500; CEQA Status – Not a Project
9.Approval of Professional Services Contract Number C27197243 with Euna Solutions,
Utilizing a TIPS Cooperative Contract, to Modernize the City’s Budget Development and
Publishing Software for a Five-Year Term, with Two One-Year Optional Extensions for a
Total Not-to-Exceed Amount of $1,322,230. CEQA Status - Not a project.
10.Approve Amendment No. 1 to Contract C21180768 with Public Safety Innovation, Inc. to
Extend Term by One Year and Update the Schedule of Rates at No Additional Not-to-
Exceed Financial Authority; CEQA Status - Not a project
11.Approval of Contract Amendment No. 3 to Contract Number C20176367 with LAZ Karp
Associates, LLC to Increase the Compensation by $713,311 for a revised total not-to-
exceed $3,035,596 and Extend the Term by 18 Months for the Parking Enforcement
Program for Residential Preferential Parking Districts; CEQA Status - Not a Project.
12.Approval of Amendment No. 1 to 14 Professional Services Contracts for GIS On-Call
Services: C26193271A with Lynx Technologies Inc, C26193271B with Seven Tablets Inc,
C26193271C with iSpatial Techno Solutions Inc, C26193271D with Geodesy,
C26193271E with UDC, C26193271F with NV5 Geospatial Inc, C26193271G with SSP
Innovations, C26193271H with Timmons Group, C26193271I with Infojini Inc,
C26193271J with Sybyte Technologies Inc, C26193271K with 360S2G, C26193271L with
Enterprise Maps, C26193271M with Farallon Geographics, C26193271N with Arini
Geographics, to increase the Not-to-Exceed Compensation by $2,000,000 and Extend
the Term for One Year; CEQA Status – Not a Project.
13.Approval of Contract Change Order No. 2 in the Amount of $1,000,000 to Contract No.
C23186274 with Monterey Mechanical Company for On-Call Emergency and Critical
Construction Services at the Regional Water Quality Control Plant, for a Revised Not-To-
Exceed Amount of $4,000,000, and Approval of Contract Amendment No. 1 to Contract
No. S24190553 with Carollo Engineers Inc. for On-call Engineering Services at the
Regional Water Quality Control Plant to Increase Compensation by $995,000 for a
3 June 01, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas.
Revised Total Not-to-Exceed Amount of $1,250,000, and to Extend the Contract Term
Through December 31, 2028; CEQA Status – Exempt Under CEQA Guidelines Section
15301
14.Adoption of a Resolution Amending Utilities Rules and Regulations Numbers 02
(Definitions and Abbreviations), 03 (Description of Utility Services), 04 (Application for
Service), 05 (Service Contracts), 09 (Disconnection, Termination and Restoration of
Service), 10 (Meter Reading), 11 (Billing, Adjustments and Payment of Bills), 18 (Utility
Service and Facilities on Customer Premises, 20 (Special Electric Utility Regulations), 21
(Special Water Utility Regulations), 22 (Special Gas Utility Regulations), 23 (Special
Wastewater Utility Regulations), and Utility Rate Schedule C-4 (Residential Rate
Assistance Program), and Repealing Rule 15 (Metering Equipment); CEQA Status – Not a
Project
CITY MANAGER COMMENTS (7:25 - 7:35 PM)
BREAK (15 MINUTES)
4 June 01, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas.
ACTION ITEMS (Item 15: 7:50 - 8:20 PM, Item 16: 8:20 - 9:20 PM; Item 17: 9:20 - 10:50 PM)
Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished
Business and Council Matters.
15.Adoption of the Community Development Block Grant (CDBG) Fiscal Year (FY) 2026-
2027 Annual Action Plan; and Approving Use of CDBG Funds for FY 2026-2027 as
Recommended by the Human Relations Commission. CEQA Status: Exempt under CEQA
Guidelines Section 15378(b)(4).
16.Outdoor Activation Standards, Pre-Approved Parklet Plans and Public Space Design
Concept for the Car-Free Portion of California Avenue; and FIRST READ: Adopt an
Ordinance Amending the Sign Code to Streamline Permitting of Signs in Conjunction
with a Parklet; CEQA Status - Exempt pursuant to CEQA Guidelines Section 15303.
17.Receive Update and Provide Direction to Staff on the Implementation of Senate Bill 79
(SB 79) and the Work Related to the Downtown Housing Plan. Adoption of Two
Temporary Ordinances Implementing SB 79, Adopting a Transit Oriented Development
Combining District, Excluding Certain Sites from Government Code Section 65912.157,
and Authorizing the Planning and Development Services Director to Make
Corresponding Updates to the Zone Map. CEQA Status: Exempt Under Government
Code section 65912.161(c)(2).
ADJOURNMENT
OTHER INFORMATION
Standing Committee Meetings this week
Finance Committee June 2, 2026 CANCELED
Economic Development Committee June 3, 2026
Public Comment Letters
Schedule of Meetings
5 June 01, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas.
AMENDED AGENDA ITEMS
1.Proclamation Honoring June 2026 as LGBTQIA+ Pride Month Late Packet Report added
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
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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.
6 June 01, 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.
7 June 01, 2026
Materials submitted after distribution of the agenda packet are available for public inspection at www.paloalto.gov/agendas.
City Council
Staff Report
Report Type: SPECIAL ORDERS OF THE DAY
Lead Department: City Clerk
Meeting Date: June 1, 2026
Report #:2605-6410
TITLE
Proclamation Honoring June 2026 as LGBTQIA+ Pride Month
This proclamation will be a late packet report published on May 28, 2026.
APPROVED BY:
Mahealani Ah Yun, City Clerk
Item 1
Item 1 Staff Report
Item 1: Staff Report Pg. 1 Packet Pg. 8 of 441
City Council
Staff Report
From: City Manager
Report Type: STUDY SESSION
Lead Department: Police
Meeting Date: June 1, 2026
Report #:2605-6381
TITLE
Study Session on Flock Automated License Plate Recognition Technology; CEQA status –
categorically exempt.
BACKGROUND
In April 2023, the City Council approved a three-year contract with Flock Safety (hereinafter
“Flock”) for the deployment of twenty fixed automated license plate recognition (ALPR)
cameras, as well as the associated Surveillance Use Policy.1 Based on the success of the first
twenty ALPR cameras deployed, and the identification of specific areas where additional
cameras would be useful, in December of 2024, the Council approved a five-year contract,
which deployed ten additional ALPR cameras and extended the term of the contract for all
thirty cameras thru December of 2029.2
In mid-2023, unbeknownst to many law enforcement agencies including PAPD, Flock had
added a new “Nationwide Lookup” search feature. Using this feature, an out-of-state local
law enforcement or federal agency could perform a broad search of data from Flock’s
entire nationwide network of over 6000 cameras belonging to more than 4000 agencies,
including the 20 cameras then-deployed in Palo Alto. The feature did not enable targeted
searches of any specific agency’s data. These searches could only be performed system-
wide and only when a full 7-digit license plate number was known. All searches required
articulation of a legitimate law enforcement purpose.
1 City Council, April 3, 2023; Agenda Item #11; SR2301-0741,
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82232&dbid=0&repo=PaloAlto&searchid=35d2643
9-835f-4015-b198-79ecd7231a2e
2 City Council, December 2, 2024; Agenda Item #11; SR #2408-3360,
Item 2
Item 2 Staff Report
Item 2: Staff Report Pg. 1 Packet Pg. 9 of 441
PAPD was first made aware of this issue in December 2025 and subsequently learned that
Flock had already disabled the feature for PAPD by late October 2024 and for all California
law enforcement agencies by March 2025.
ANALYSIS
An elderly man, who suffers from dementia, was discovered to have taken his
caregiver’s vehicle without permission and was missing. Flock data was used to
determine his path of travel and, ultimately, locate him safely within the hour;
A despondent teenager suffering from a mental health crisis had made threats of
suicide before leaving home in a vehicle. Flock data was used to determine their
path of travel and a Flock real-time alert allowed officers to locate them safely and
ensure they received appropriate care;
Two suspects committed an armed robbery in Palo Alto after having just committed
an armed robbery in another city. A Flock real-time alert allowed officers to locate
the vehicle’s direction of travel within minutes, and additional Flock alerts in another
city aided officers as they pursued the vehicle, apprehended the suspects, and
recovered multiple firearms;
Item 2
Item 2 Staff Report
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Two suspects committed a robbery at a shopping center and injured a police officer
during their escape. Palo Alto Flock data was used to identify the suspects and Flock
data in other cities enabled PAPD detectives to locate the suspect vehicle and,
ultimately, arrest both suspects within 24 hours.
A suspect was arrested in connection with a series of felony retail thefts in Palo Alto
and other cities throughout the region. Investigators were able to strengthen their
case by combining Flock data from Palo Alto and other cities to confirm that the
suspect’s vehicle had, in fact, been in the area of each of the thefts at the times of
the thefts.
Two suspects, responsible for dozens of residential burglaries throughout the region
(including multiple occupied burglaries in Palo Alto), were identified and arrested
through the investigative use of Flock data captured in multiple jurisdictions. The
suspects were ultimately located and arrested in another city with the help of Flock
data.
A Flock real-time alert notified officers of the presence in Palo Alto of a vehicle
wanted in connection with a shooting homicide in another city. PAPD officers
located the vehicle and arrested the homicide suspect.
To derive maximum benefit with the fewest cameras needed, the Department has placed its
cameras at strategically selected locations based on several factors: crime statistics,
common vehicular ingress and egress points, and traffic volume. The cameras at these
locations have proven to be effective at providing officers with real-time alerts when
vehicles of interest enter or flee the City via the most common ingress and egress points.
The cameras are placed on roadways with high traffic volume, with an emphasis on ingress
and egress routes and commercial and retail areas.
Applicable Law and Policy
California Civil Code § 1798.90.55 expressly prohibits sharing ALPR data with out of state or
federal agencies. Additionally, California Government Code § 7284 et seq. (known as the
California Values Act) prohibits the use or sharing of ALPR for immigration enforcement
purposes.
Beyond the restrictions imposed by California law, the Department’s Fixed ALPR surveillance
use policy, approved by the City Council in 2023,5 provides in relevant part:
Data is only accessible to trained PAPD staff with a legitimate law enforcement need,
and all queries are logged and subject to audit.
5 Approval of the policy is available at: City Council, April 3, 2023, Action Minutes,
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=43006
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The Department only shares its data with other local law enforcement agencies with
whom an MOU is in place, and does not share data with any non-law enforcement
entities.
Data not saved as evidence in a specific criminal investigation is purged after 30
days.
The Department makes accessible to the public, via its ALPR webpage,7 relevant policies as
well as information concerning the number of cameras deployed, the data retention period,
and the names of law enforcement agencies with whom it shares data by agreement. Flock
Safety also maintains a publicly accessible Transparency Portal8 containing much of the
same information.
Palo Alto Data Sharing
While its data was unknowingly included in the “Nationwide Lookup” searchable dataset for
a period of time ending in October 2024, PAPD has worked with Flock to confirm that no
PAPD data (i.e., license plates captured by Palo Alto cameras) was actually received by any
out-of-state agency or federal agency as a result of any “Nationwide Lookup” search. In
other words, PAPD had no records that matched the “Nationwide Lookup” searches
performed by out of state or federal agencies.
Even though no PAPD data was shared, PAPD reviewed a sampling of the searches
performed by out-of-state local law enforcement and federal agencies via the “Nationwide
Lookup” feature. The searches it reviewed all appeared to be linked to legitimate law
enforcement investigations (e.g., burglary, vehicle theft, assault).3 Additionally, PAPD found
that no searches had been performed by ICE, Customs and Border Patrol, or the
Department of Homeland Security; keyword searches did not identify any searches that
appeared to be associated with immigration enforcement or reproductive rights
enforcement.
Flock Updates
Flock has implemented several feature changes in response to concerns regarding potential
improper use.9 Among those changes:
Disabling the “Nationwide Lookup” feature for all California agencies;
Prohibiting any sharing agreements between California and non-California agencies;
7 City of Palo Alto’s Automated License Plate Recognition (ALPR) webpage;
https://www.paloalto.gov/Departments/Police/Public-Information-Portal/Automated-License-Plate-Recognition-
ALPR
8 Flock Safety, Palo Alto Police Transparency Portal webpage; https://transparency.flocksafety.com/palo-alto-ca-pd
9 Flock Safety, Flock Algins License Plate Reader Technology with State-Specific Legal Frameworks Blog, 2026;
https://www.flocksafety.com/blog/flock-aligns-license-plate-reader-technology-with-state-specific-legal-frameworks
Item 2
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Requiring a documented FBI National Incident-Based Reporting System (NIBRS) case
type for all searches to make auditing easier;
Filtering and blocking, by keyword, prohibited searches involving
immigration or reproductive healthcare. If a search containing a blocked keyword is
attempted, California agency data will not be queried and no data will be returned.
Flock has also expanded its compliance team to ensure that new features are thoroughly
vetted for state-specific legal compliance. In addition, Flock is in the process of
implementing updated processes for notifying customers of new system functionality and
any changes to user settings.
Regional Use of Flock
ALPR technology is widely used throughout Santa Clara County, with Flock being the
predominant vendor. Nearly all agencies – as well as most agencies in adjoining counties –
share their ALPR data with one another. ALPR data sharing among local law enforcement
partners allows agencies to collaboratively investigate, identify and apprehend multi-
jurisdictional offenders, or those who commit crimes in one jurisdiction but reside in
another. No other fixed-ALPR vendor has significant market share in California.
With that, as a result of recent concerns, several Santa Clara County jurisdictions have re-
examined their continued use of Flock ALPR cameras.
The City of Mountain View and Town of Los Altos Hills elected to discontinue use of Flock.
The Santa Clara County Board of Supervisors aborted its planned roll-out of Flock ALPR
cameras and is, instead, exploring alternative ALPR vendors. In the interim, the Sheriff’s
Office has also ceased accessing Flock cameras owned by the contract cities of Saratoga and
Cupertino.
On the other hand, the city councils of San Jose and Sunnyvale recently approved the
continued used of Flock ALPR with some minor policy modifications, and the cities of Santa
Clara, Milpitas, Morgan Hill, Gilroy, and Los Gatos-Monte Sereno have continued to use
Flock ALPR without interruption. The Town of Los Altos has indicated that it intends to
continue its use of Flock ALPR and has a pending informational session scheduled for its city
council. The City of Campbell is the lone city in the county that has been using an ALPR
vendor other than Flock.
In the greater Bay Area region, where Flock is similarly the predominant ALPR vendor,
notably, the cities of San Francisco, Oakland, Richmond, Berkeley and East Palo Alto have
recently approved the continued use of Flock ALPR, while Santa Cruz has discontinued use.
Menlo Park, Atherton, and Redwood City continue to use Flock ALPR uninterrupted.
Item 2
Item 2 Staff Report
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Nationwide, nearly 6000 law enforcement agencies in 49 states currently use Flock ALPR
cameras, including more than 300 law enforcement agencies in California. In total, fewer
than 70 agencies (about 1% of user agencies) nationwide have discontinued their use of
Flock (for any reason) since 2025, with fewer than 10 of those in California (about 3% of CA
user agencies).
Item 2
Item 2 Staff Report
Item 2: Staff Report Pg. 6 Packet Pg. 14 of 441
which it shares, meet or exceed industry standards, the IPA will also assess PAPD’s internal
policies and procedures with an eye toward areas where it may be able to do even better.
FISCAL/RESOURCE IMPACT
13
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
13 City Council, April 3, 2023, Item #11, SR #2301-0741, Attachment A, p.68 Sections 6.2 and 6.3 of Exhibit J in
Contract S23187316 between the City of Palo Alto and Flock Group, Inc.;
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82232&dbid=0&repo=PaloAlto
Item 2
Item 2 Staff Report
Item 2: Staff Report Pg. 7 Packet Pg. 15 of 441
Surveillance Use Policy for fixed Automated License Plate Recognition
ALPR) Technology
In accordance with Palo Alto Municipal Code Section PAMC 2.30.680(d), the Surveillance Use
Policy for the Police Department’s use of fixed ALPR technology is as follows:
1. Intended Purpose. The technology is used by the Palo Alto Police Department to
convert data associated with vehicle license plates and vehicle descriptions for official
law enforcement purposes, including but not limited to identifying stolen or wanted
vehicles, stolen license plates and missing persons, suspect interdiction and stolen
property recovery.
2. Authorized Uses. Department personnel may only access and use the ALPR system for
official and legitimate law enforcement purposes consistent with this Policy.
The following uses of the ALPR system are specifically prohibited:
a. Harassment or Intimidation: It is a violation of this Policy to use the ALPR system
to harass and/or intimidate any individual or group.
b. Personal Use: It is a violation of this Policy to use the ALPR system or
associated scan files or hot lists for any personal purpose.
c. First Amendment Rights. It is a violation of this policy to use the LPR system or
associated scan files or hot lists for the purpose or known effect of infringing
upon First Amendment rights of any person.
d. Invasion of Privacy: Except when done pursuant to a court order such as a
search warrant, is a violation of this Policy to utilize the ALPR to record license
plates except those of vehicles that are exposed to public view (e.g., vehicles on
a public road or street, or that are on private property but whose license plate(s)
are visible from a public road, street, or a place to which members of the public
have access, such as the parking lot of a shop or other business establishment).
3. Information Collected. A fixed ALPR system captures the date, time, location, license
plate (state, partial, paper, and no plate), and vehicle characteristics (make, model, type,
and color) of passing vehicles. using the Palo Alto Police Department’s ALPR’s system
and the vendor’s vehicle identification technology.
4. Safeguards. All data will be closely safeguarded and protected by both procedural and
technological means. The Palo Alto Police Department will observe the following
safeguards regarding access to and use of stored data (Civil Code § 1798.90.51; Civil
Code § 1798.90.53):
a. All ALPR data shall be accessible only through a login/password-protected
system capable of documenting all access of information by name, date, and
time.
City Council Approved: April 3, 2023
Item 2
Attachment A - Council-
approved surveillance use
policy for Fixed ALPR
Technology
Item 2: Staff Report Pg. 8 Packet Pg. 16 of 441
b. Persons approved to access ALPR data under this policy are permitted to access
the data for legitimate law enforcement purposes only, such as when the data
relate to a specific criminal investigation
c. Such ALPR data may only be released to other authorized and verified local
enforcement officials and agencies for legitimate law enforcement purposes.
d. Every ALPR system inquiry must be documented by either the associated case
number or incident number, and lawful reason for the inquiry.
5. Retention. The City’s ALPR vendor, Flock Safety, will store the data (data hosting) and
ensure proper maintenance and security of data stored in their data centers. Flock
Safety will purge the data 30 days after collection; however, this will not preclude Palo
Alto Police Department from maintaining any relevant vehicle data obtained from the
system after that period if it has become, or it is reasonable to believe it will become,
evidence in a specific criminal investigation or is subject to a discovery request or other
lawful action to produce records. In those circumstances the applicable data should be
downloaded from the server onto portable media and booked into evidence.
Information gathered or collected, and records retained by Flock Safety cameras will not
be sold, accessed, or used for any purpose other than legitimate law enforcement or
public safety purposes.
6. Access by non-City Entities. The ALPR data may be shared only with other local law
enforcement or prosecutorial agencies for official law enforcement purposes or as
otherwise required by law, and as provided below:
a. Requests
i. A law enforcement agency may make a written request for specific data,
including the name of the agency and the intended official law
enforcement purpose for access
ii. The request shall be reviewed by the Chief of Police or the authorized
designee and approved before access is granted
iii. The approved request is retained on file
iv. Requests for ALPR data by non-law enforcement or non-prosecutorial
agencies will be processed by the Department’s custodian of records and
fulfilled only as required by law.
b. Memorandaphilip of Understanding
i. Access to searchable data by other local law enforcement agencies shall
only be granted pursuant to an MOU with that specific agency
ii. Such MOU will provide that access will only be used for legitimate law
enforcement or public safety purposes
c. The Chief of Police or the authorized designee will consider the California Values
Act (Government Code § 7282.5; Government Code § 7284.2 et seq), before
approving the access to ALPR data. The Palo Alto Police Department does not
permit the sharing of ALPR data gathered by the City or its
contractors/subcontractors for purpose of federal immigration enforcement.
City Council Approved: April 3, 2023
Item 2
Attachment A - Council-
approved surveillance use
policy for Fixed ALPR
Technology
Item 2: Staff Report Pg. 9 Packet Pg. 17 of 441
7. Compliance Procedures. The Investigative Services Captain (or other police
administrator as designated by the Police Chief) shall be responsible for compliance with
the requirements of Civil Code § 1798.90.5 et seq. This includes, but is not limited to
Civil Code § 1798.90.51; Civil Code § 1798.90.53):
a. Only properly trained sworn officers, crime analysts, and police staff are allowed
access to the ALPR system or to collect ALPR information.
b. Ensuring that training requirements are completed for authorized users.
c. ALPR system monitoring to ensure the security of the information and
compliance with applicable privacy laws.
d. Ensuring that procedures are followed for system operators and to maintain
records of in compliance with Civil Code § 1798.90.52.
e. The title and name of the current designee in overseeing the ALPR operation is
maintained. Continually working with the Custodian of Records on the retention
and destruction of ALPR data as required.
f. Ensuring this policy and related procedures are conspicuously posted on the
Department’s dedicated ALPR website.
It is the responsibility of the Investigative Services Captain (or other police administrator
as designated by the Police Chief) to ensure that an audit is conducted of ALPR
detection inquiries at least once during each calendar year. The Department will audit a
sampling of the ALPR system utilization from the prior 12-month period to verify proper
use in accordance with the above authorized uses. The audit shall randomly select at
least 10 detection browsing inquiries conducted by department employees during the
preceding six-month period and determine if each inquiry meets the requirements
established by policy. This audit shall take the form of an internal Department
memorandum to the Chief of Police. The memorandum shall include any data errors
found so that such errors can be corrected. After review by the Chief of Police, the
memorandum and any associated documentation shall be filed and retained by the
Department.
City Council Approved: April 3, 2023
Item 2
Attachment A - Council-
approved surveillance use
policy for Fixed ALPR
Technology
Item 2: Staff Report Pg. 10 Packet Pg. 18 of 441
City Council
Staff Report
Report Type: CONSENT CALENDAR
Lead Department: City Clerk
Meeting Date: June 1, 2026
Report #:2605-6363
TITLE
Approval of Minutes from May 11 and May 18, 2026 Meeting
RECOMMENDATION
Staff recommends that the City Council review and approve the minutes.
ATTACHMENTS
Attachment A: May 11, 2026 Draft Action Minutes
Attachment B: May 18, 2026 Draft Action Minutes
APPROVED BY:
Mahealani Ah Yun, City Clerk
Item 3
Item 3 Staff Report
Item 3: Staff Report Pg. 1 Packet Pg. 19 of 441
CITY COUNCIL
DRAFT ACTION MINUTES
Page 1 of 4
Special Meeting
May 11, 2026
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual
teleconference at 4:30 P.M.
Present In Person: Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Stone, Veenker
Councilmember Reckdahl Arrived at 5:08 P.M.
Present Remotely:
Absent:
Special Orders of the Day
1. City Employee Years of Service Awards and Proclamation acknowledging Public Service
Recognition Week
NO ACTION
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
NO ACTION
Closed Session
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)
Item 3
Attachment A - May 11,
2026 Draft Action Minutes
Item 3: Staff Report Pg. 2 Packet Pg. 20 of 441
DRAFT ACTION MINUTES
Page 2 of 4
Sp. City Council Meeting
Draft Action Minutes: 05/11/2026
Agenda Item Number 3 Heard Out of Order
MOTION: Councilmember Reckdahl moved, seconded by Councilmember Lu to go into Closed
Session.
MOTION PASSED: 7-0
Council went into Closed Session at 9:01 P.M.
Council returned from Closed Session at 9:18 P.M.
Mayor Veenker announced that the City Council authorized the City Attorney by vote of 7-0 to
enter into a settlement agreement to pay $85,000 to resolve the claims against the city in Anne
Kramer vs City of Palo Alto, Santa Clara County Superior Court Case No. 25CV461517.
Mayor Veenker announced that on May 4, 2026, the City Council authorized the City Attorney
by a vote of 7-0 to enter into a settlement agreement to establish a process of consideration of
an alternative to the proposed Builder’s Remedy development project at 156 North California
Avenue. The settlement agreement was finalized on May 7, 2026.
Agenda Changes, Additions and Deletions
Public Comment
Council Member Questions, Comments and Announcements
Study Session
4. FY 2027 Proposed Operating and Capital Budget - Finance Committee Update and
Council Budget Discussion. CEQA Status – Not a project
NO ACTION
Consent Calendar
MOTION: Councilmember Lauing moved, seconded by Councilmember Reckdahl to approve
Agenda Item Numbers 5-6.
Item 3
Attachment A - May 11,
2026 Draft Action Minutes
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DRAFT ACTION MINUTES
Page 3 of 4
Sp. City Council Meeting
Draft Action Minutes: 05/11/2026
MOTION PASSED: 7-0
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
Ed Shikada, City Manager
Action Items
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).
MOTION: Mayor Veenker moved, seconded by Councilmember Lythcott-Haims to:
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.
MOTION PASSED: 7-0
8. Expedited Evaluation of the Potential Temporary Closure of the Churchill Avenue Rail
Crossing, Determination of Next Steps, and CEQA Status – Statutorily and Categorically
Item 3
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2026 Draft Action Minutes
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DRAFT ACTION MINUTES
Page 4 of 4
Sp. City Council Meeting
Draft Action Minutes: 05/11/2026
Exempt.
(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.)
MOTION: Vice Mayor Stone moved, seconded by Mayor Veenker to:
A) Direct staff to explore options for a long-term rail crossing guard contract and engage
PAUSD through the City School Liaison Committee regarding a potential long-term cost-
sharing agreement;
B) Direct the Jed Foundation, as part of its 2026 deliverables, to return to the Rail
Committee with targeted recommendations and evidence-based strategies to address
safety risks at all four rail crossings, and authorize any budget adjustments necessary to
achieve those deliverables;
C) Direct staff and Rail Committee to prioritize and expedite implementation of Quiet
Zones at all four rail crossings, with particular emphasis on accelerating the Churchill
Avenue crossing Quiet Zone; and
D) Explore gate(s) or other options in collaboration with Caltrain for enhanced enclosure or
safety measures in addition to the quad gates.
MOTION PASSED: 7-0
Adjournment: The meeting was adjourned at 9:19 P.M.
ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor
NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)
2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section
2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council
found action minutes and the video/audio recordings of Council proceedings to be the official
records of both Council and committee proceedings. These recordings are available on the
City’s website.
Item 3
Attachment A - May 11,
2026 Draft Action Minutes
Item 3: Staff Report Pg. 5 Packet Pg. 23 of 441
CITY COUNCIL
DRAFT ACTION MINUTES
Page 1 of 5
Regular Meeting
May 18, 2026
The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual
teleconference at 5:30 P.M.
Present In Person: Burt, Lauing, Lu, Lythcott-Haims, Reckdahl, Stone, Veenker
Mayor Veenker departed the meeting at 8:30 P.M.
Present Remotely:
Absent:
Special Orders of the Day
1. Recognizing May as Asian American, Native Hawaiian, and Pacific Islander (AANHPI)
Heritage Month and May 10, 2026 as AANHPI Mental Health Awareness Day
NO ACTION
Agenda Changes, Additions and Deletions
Public Comment
Council Member Questions, Comments and Announcements
Consent Calendar
Mayor Veenker and Councilmember Lu recused from Agenda item Number 11.
Councilmember Lauing, Burt, and Lythcott-Haims requested to pull Agenda Item Number 12.
Item 3
Attachment B - May 18,
2026 Draft Action Minutes
Item 3: Staff Report Pg. 6 Packet Pg. 24 of 441
DRAFT ACTION MINUTES
Page 2 of 5
City Council Meeting
Draft Action Minutes: 05/18/2026
MOTION: Councilmember Lythcott-Haims moved, seconded by Vice Mayor Stone to approve
Agenda Item Numbers 2-7, 9-11 and to pull Agenda Item Number 12 off of the Consent
Calendar (Agenda Item Number 8 Removed Off Agenda).
MOTION PASSED ITEMS 2-7, 9-10: 7-0
MOTION PASSED ITEM 11: 5-0-2, Veenker, Lu recused
2. Approval of Minutes from May 4, 2026 Meeting
3. 2026 Council Priorities & Objectives Q1 Update
4. Adoption of a Resolution Vacating a Portion of a Public Utility Easement at 590 Maybell
Avenue; CEQA Status – Exempt under Cal. Code Regs. Title 14, Section 15305
5. Adoption of a Resolution for Senate Bill 1, the Road Repair and Accountability Act, for
Fiscal Year 2027, Providing the Project List for the Street Maintenance Project, Capital
Improvement Program Project PE-86070; CEQA Status – Not a Project
6. Adoption of Resolution Suspending the Levy of Assessments on the Downtown Palo Alto
Business Improvement District (BID) Assessment for Fiscal Year 2027; CEQA status – not
a project.
7. Adopt a Resolution Approving Amendment Number 1 to California Board of State and
Community Corrections Agreement Number BSCC 1164-23 for Organized Retail Theft
Grant to Extend the Term One Year with No Change to the Not-To-Exceed Total; CEQA
status—not a project.
8. Adoption of a Resolution Authorizing the Borrowing of Funds on an Interim Basis for
Improvements to the City's Regional Water Quality Control Plant and Authorizing the
Execution and Delivery of a Revolving Credit Agreement and Related Note; CEQA Status
- Not a Project Item Removed Off Agenda
9. Approval of Construction Contract No. C26197232 with Selway Construction, Inc. in the
Amount Not-to of $261,600 and Authorization for the City Manager or Their Designee to
Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that
may Develop During the Project Up to a Not-to-Exceed Amount of $26,160 for Site Work
for a New Modular Restroom Building at Mitchell Park for the Park Restroom Installation
Capital Improvement Project (PG-19000); CEQA status – Exempt Under CEQA Guidelines
Section 15303
10. Approval of Construction Contract No. C26197180 with Casey Construction, Inc. in the
Not-to-Exceed Amount of $544,556 and Authorization for the City Manager or Their
Designee to Negotiate and Execute Change Orders for Related Additional but
Unforeseen Work that May Develop During the Project Up to a Not-to-Exceed Amount
Item 3
Attachment B - May 18,
2026 Draft Action Minutes
Item 3: Staff Report Pg. 7 Packet Pg. 25 of 441
DRAFT ACTION MINUTES
Page 3 of 5
City Council Meeting
Draft Action Minutes: 05/18/2026
of $54,456 for the Storm Drainage System Replacement and Rehabilitation Project (SD-
06101); CEQA status – Exempt under CEQA Guidelines Section 15301(c)
11. Approve Amendment Number 2 to Contract C3780 with Stanford University, to Extend
the Contract Term to September 30, 2027 for Public Safety Dispatch Services Provided
to the Main Campus of Stanford University; CEQA status—not a project.
12. PUBLIC HEARING / QUASI-JUDICIAL. 4103 Old Trace Road [25PLN-00298]: Request for
Approval of a Tentative Map to Allow for the Subdivision of a Vacant 1.02-Acre Lot to
Create Nine Residential Lots and One Private Street to Facilitate Construction of Nine
New Single-Family Residences and Seven Junior Accessory Dwelling Units (25PLN-
00296). CEQA Status: Exempt Pursuant to Assembly Bill 130 (Public Resources Code
Section 21080.66). Zone District: RE (Residential Estate) Item Removed Off Consent
Calendar to Be Heard on Action
City Manager Comments
Ed Shikada, City Manager
Action Items
13. Cubberley Project: Adopt the Cubberley Conceptual Master Plan and a Resolution
Adopting the CEQA Mitigated Negative Declaration and Mitigated Monitoring and
Reporting Program; Receive the Fourth Round of Community Polling Results; and
Provide Direction on Next Steps for a Possible Sales Tax Ballot Measure. CEQA Status - A
Draft Initial Study/Mitigated Negative Declaration (IS-MND) Report Circulated for Public
Review from March 2, 2026, to April 1, 2026. The City published the Final IS-MND on
April 9, 2026.
MOTION: Mayor Veenker moved, seconded by Councilmember Lythcott-Haims to:
1. Adopt a Resolution adopting the Final Initial Study Mitigated Negative Declaration for
the Project and associated Mitigated Monitoring and Reporting Program (Attachment
A); and
2. Adopt the Cubberley Conceptual Master Plan (Attachment B); and
3. Direct staff to pursue a ballot measure for a one-half-cent sales tax in the November
2026 election.
MOTION PASSED: 7-0
Item 3
Attachment B - May 18,
2026 Draft Action Minutes
Item 3: Staff Report Pg. 8 Packet Pg. 26 of 441
DRAFT ACTION MINUTES
Page 4 of 5
City Council Meeting
Draft Action Minutes: 05/18/2026
14. Update Regarding the Builder’s Remedy Project at 156 California Avenue and
Consideration of Adding Lot B (APN 124-28-003) Associated with the Development to
the City’s Housing Element Sites Inventory.
MOTION: Vice Mayor Stone moved, seconded by Councilmember Lythcott-Haims to direct the
Planning and Development Services Director to add Lot A (APN 124-28-045) to the Housing
Element Sites Inventory.
MOTION PASSED: 4-2-1, Reckdahl, Burt no, Veenker absent
15. FIRST READING: Adoption of an Ordinance to Amend Various Sections of Title 16
(Building Regulations) and Title 18 (Zoning) of the Palo Alto Municipal Code to
Implement Retail Vitality Policies in the Comprehensive Plan, including changes to the
Zoning Map for parcels zoned CN(GF). CEQA Status: The Ordinance is Consistent with
and Represents Implementation of Adopted Policies in the Comprehensive Plan, for
Which an Environmental Impact Report (Comprehensive Plan EIR) was Certified on
February 5, 2016.
Agenda Item Number 15 not heard and deferred to a date uncertain.
12. PUBLIC HEARING / QUASI-JUDICIAL. 4103 Old Trace Road [25PLN-00298]: Request for
Approval of a Tentative Map to Allow for the Subdivision of a Vacant 1.02-Acre Lot to
Create Nine Residential Lots and One Private Street to Facilitate Construction of Nine
New Single-Family Residences and Seven Junior Accessory Dwelling Units (25PLN-
00296). CEQA Status: Exempt Pursuant to Assembly Bill 130 (Public Resources Code
Section 21080.66). Zone District: RE (Residential Estate)
MOTION: Councilmember Lu moved, seconded by Vice Mayor Stone to:
1. Consider the project exempt from the California Environmental Quality Act (CEQA) in
accordance with Assembly Bill 130 (Public Resources Code section 21080.66); and,
2. Approve the Tentative Map application pursuant to findings and subject to conditions of
approval set forth in Attachment A (Draft Record of Land Use Action) of the
supplementary report.
MOTION PASSED: 6-0-1, Veenker absent
Adjournment: The meeting was adjourned at 10:35 P.M.
Item 3
Attachment B - May 18,
2026 Draft Action Minutes
Item 3: Staff Report Pg. 9 Packet Pg. 27 of 441
DRAFT ACTION MINUTES
Page 5 of 5
City Council Meeting
Draft Action Minutes: 05/18/2026
ATTEST: APPROVED:
____________________ ____________________
City Clerk Mayor
NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC)
2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section
2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council
found action minutes and the video/audio recordings of Council proceedings to be the official
records of both Council and committee proceedings. These recordings are available on the
City’s website.
Item 3
Attachment B - May 18,
2026 Draft Action Minutes
Item 3: Staff Report Pg. 10 Packet Pg. 28 of 441
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CITY COUNCIL
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: June 1, 2026
Report #: 2603-6144
TITLE
Recommendation from Policy and Services Committee to City Council to Indefinitely Defer Both
Expansion of the Rental Registry Program to Properties with Two or Fewer Units and Further
Consideration of a Possible Rent Stabilization Ordinance. CEQA: Exempt pursuant to CEQA Guidelines
Section 15061(b)(3).
RECOMMENDATION
The Policy and Services Committee and staff recommend that the City Council indefinitely defer the
following two rental policy efforts:
Expansion of the Rental Registry Program to properties with two and fewer units; and
Further analysis or preparation of a draft ordinance related to a local rent stabilization policy.
EXECUTIVE SUMMARY
This report transmits the March 10, 2026, Policy and Services Committee (P&S) and staff unanimous
recommendation to City Council to indefinitely defer the following two possible rental policy actions:
Expansion of the Rental Registry Program (RRP) to properties with two or fewer units; and
Pursuing further analysis or preparation of a draft ordinance for a local rent stabilization
program.
The P&S Committee voted 3-0 to forward to the Council a recommendation to defer both items
indefinitely, noting that the RRP data did not demonstrate the need for a local rent stabilization program
and that expanding the RRP would result in significant and undesired costs for the City and/or property
owners. This consent calendar item brings that recommendation to the Council for approval.
BACKGROUND
In November 2021, City Council directed staff to bring a proposal on expanding anti rent-gouging
measures addressing gaps in California's Tenant Protection Act of 2019 (TPA) to the Policy and Services
Committee.
In 2023, City Council adopted Palo Alto Municipal Code (PAMC) Chapter 9.65 and established the Rental
Registry Program (RRP) to collect data on Palo Alto's residential rental landscape, support data-informed
policy decisions, promote awareness of renter protections, and advance the City's Housing Element
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goals.1 The City Council directed staff to “commence with a phased implementation initially with
multifamily housing (3-units and above), and return to Council to evaluate the potential expansion to all
rental properties including single family homes at the end of year two.”2 The open registration period
for the first program year began in October 2024.
ANALYSIS
3 contains a comprehensive analysis supporting the
recommendation to defer both policy actions. A summary of the key staff findings is provided below.
The P&S Committee discussed both initiatives informed by the analysis provided. Though the Committee
reflected an appreciation for the intention of further policy actions, the committee identified that the
additional resources and program expansion were not appropriate at this time. Key feedback on the
Rental Registry Program included that while collecting additional data on 1- and 2-unit rental properties
would be helpful, the Committee felt it was not a priority since it would also be costly and place
administrative burdens on small landlords. Key feedback on the rent stabilization program included
concern about high costs and acknowledgement that rent stabilization policies often have unintended
consequences that go with them. The Committee also concluded that the City could always revisit these
policy topics if future Rental Registry Program data shows a need for additional regulations, which staff
and the Committee found was not supported based on the first year report.
1 See November 27, 2023, Staff Report #2308-1904 for more information:
https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=1f60dbbc-bd15-4f17-8ad5-
5e7231151395
2 See November 27, 2023, action minutes for details:
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=43088&dbid=0&repo=PaloAlto&searchid=dfdc91d2
-eea7-4f55-a34d-24ff6be8755a
3 https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=297911ba-82ea-4397-aaaf-
764df2976be1
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• Rent increases: Of the 5,174 market-rate units included in rent increase analysis, nearly two-
thirds (62.85%) reported no change in rent. Approximately one quarter of units (25.57%)
experienced an increase of between 0% and 5%, and approximately one tenth of units (10.94%)
experienced an increase above 5%.
• Market adjustments: Approximately 45% of renter-occupied units received some form of market
adjustment, including deed restrictions, rental assistance or subsidies, and rent discounts or
incentives.
From this and other data collected in the first program year, State rent stabilization protections under
the TPA appear to be functioning largely as intended for the majority of Palo Alto's registered rental
units.
Rent Stabilization Analysis
Staff analyzed legal constraints on the scope of a local rent stabilization program, the breadth of existing
statewide rent stabilization protections, and resource requirements.
Key findings included:
•Notable limitations to program scope: The Costa-Hawkins Rental Housing Act of 1995
significantly limits the scope of any local rent stabilization ordinance. It precludes regulation of
single-family homes, condominiums, and units built after February 1, 1995, and requires vacancy
decontrol for covered units.
•Existing State-level rent protections for many units: The TPA, enacted in 2019 and expanded in
2023, already caps annual rent increases for covered units at 5% plus local CPI, or 10%,
whichever is lower. The TPA covers nearly all units built over 15 years ago except for single-
family homes not owned by a large corporation or affordable units already subject to other rent
restrictions.
•Significant resource requirements: Based on peer city data, staff estimate that creating a local
rent stabilization program in Palo Alto would require approximately five additional full-time
employees and approximately $2 million in annual operating costs. Unit-level rental registry
program fees could need to rise to over $300 per unit for some units to achieve full cost
recovery, compared to the current Program Year 2 fee of $35 per unit.
Based on these findings and the moderate local rent increases shown in the RRP Program Year 1 data,
P&S supported staff’s recommendation to indefinitely defer further analysis or preparation of a draft
ordinance for a local rent stabilization program.
Rental Registry Program Expansion
With respect to Council's prior direction to evaluate expanding the RRP to properties with two or fewer
rental units, P&S and staff recommend deferring this expansion indefinitely as well. Program Year 1
surfaced the need for a number of operational refinements — including unit count verification
processes, registration notification procedures, and deployment of new reporting and payment tools —
that were still being refined in Program Year 2. Staff believe it is prudent to allow program processes to
mature and stabilize at this time rather than attempting to register an estimated 4,305 additional units
spread across over 4,100 properties, many of which may be owned by small landlords with limited time
and resources, in a still-developing program.
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Staff also noted that there would be additional staffing costs needed to support program expansion.
These costs would either need to be absorbed by the City at a time when the City budget is already
constrained or passed on to property owners through increased program fees. P&S found that the cost-
saving advantages for both the City and property owners were a strong reason to indefinitely defer
program expansion.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
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ATTACHMENTS
APPROVED BY:
Item 4
Item 4 Staff Report
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1
Policy & Services Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: March 10, 2026
Report #:2508-5120
TITLE
Discussion of the Rental Registry Program First Year Report and Rent Stabilization Analysis,
Including Recommendations to the City Council to Not Expand the Rental Registry Program to
Properties with Two or Fewer Units and to Defer Further Consideration of a Possible Rent
Stabilization Ordinance.CEQA: Exempt pursuant to CEQA Guidelines Section 15061(b)(3).
RECOMMENDATION
Staff recommend that the Policy and Services Committee discuss and provide feedback on the
findings from the first year of the rental registry program andthe related rent stabilization
analysis, and recommend the Council defer indefinitely:
a) an expansion of the rental registry program to properties with two and fewer units, and
b) further analysis or preparation of a draft ordinance related to possible implementation
of a local rent stabilization policy.
EXECUTIVE SUMMARY
This report presents the Rental Registry Program's first year findings andresponds to Council
direction to analyze the feasibility of a local rent stabilization ordinance and evaluate expanding
the Rental Registry Program to properties with two or fewer units.
The Rental Registry Program registered 95.4% of covered properties and 97.9% of covered units
in its inaugural year, with 414 properties and 7,653 unitsregistered. Key findings based on
landlords’ self-reported data include a 5.21% vacancy rate, median monthly rents for non-
discounted market rate unitsranging from $2,095 (studio) to $4,495 (three-bedroom), and
moderate rent increase activity with almost two thirds of market rateunits reporting no change
in rent.Detailed Program Year 1data is provided in Attachment A.
Regarding rent stabilization, thisreport examines state legal protections and constraints, the
effects of local rent stabilization measures in peer cities, and resource requirements. The Costa-
Hawkins Rental Housing Act significantly limits which units a local ordinance could regulate, and
Item 4
Attachment A - March 10,
2026 Staff Report,
Attachment & Exhibit
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the Tenant Protection Act already caps rent increases for most of those units. A local program
would require a conservatively estimated $2 million annual budget, including five new full-time
employees, in direct costs, which may eventually be cost recovered in part or in full through
higher rental program fees. Staff do not recommend pursuing a rent stabilization ordinance at
this time given the other competing priorities and the significant implementation resource
needs.
Staff similarly recommend deferring expansion of the Rental Registry Program to properties
with two or fewer units, pending further program maturation and improved fiscal conditions.
BACKGROUND
In November 2021, City Council directed staff to bring a proposal and discussion on “expanding
anti-gouging measures to address loopholes” to the Policy and Services Committee, referencing
gaps in coverage from California’s Tenant Protection Act of 2019, which introduced statewide
rent stabilization.1 In 2024, Council directed staff to prepare an analysis for a possible anti rent-
gouging policy.2
On December 9, 2024, staff held a preliminary discussion on this topic with the Housing Ad Hoc
Committee. Staff reviewed state law with the Housing Ad Hoc Committee and explained the
limits on local regulation imposed by the Costa-Hawkins Rental Housing Act of 1995 (Costa-
Hawkins), which precludes the City from implementing the kind of expansive local rent
stabilization program that would cover all units not regulated by the Tenant Protection Act. The
Housing Ad Hoc Committee discussed and deferred the matter until the first year Rental
Registry Program data was able to help inform the discussion. The Housing Ad Hoc has since
disbanded, and Council directed staff to engage the Policy and Services Committee for
additional consideration.
City Council established the Rental Registry Program (PAMC Chapter 9.65) to collect data on
Palo Alto's residential rental landscape, support data-informed policy decisions, promote
awareness of renter protections, and advance the City's Housing Element goals. The inaugural
registration period opened October 1, 2024, and focused on rental properties with three or
more units.
The program achieved a 95.4% property registration rate (414 of 434 properties) and a 97.9%
unit registration rate (7,653 of 7,821 units) by the close of the extended grace period on April 6,
1 See action minutes from November 29, 2021 Council meeting for details and other direction from Council on
renter protection policies:
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=42829&dbid=0&repo=PaloAlto
2 See 2024 Council Objective #55: https://www.paloalto.gov/files/assets/public/v/1/2024-council-priorities-
objectives-4-30_final.pdf
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2025. Registration fees were waived for Program Year 1; the Program Year 2 fee is $35.00 per
unit, with exemptions for owner-occupied units and 100% affordable housing properties.
Key findings from registered properties include: an occupancy rate of 94.8% and a vacancy rate
of 5.21%; a rental stock comprised of more studio and one-bedroom units (58.89% combined)
than larger units, with units of three or more bedrooms comprising just 5.97% of inventory; and
a building stock where nearly half of units (49.52%) were constructed between 1960 and 1979.
Over half of current renters (53.73%) began their tenancy within the prior three years. Median
monthly rents for non-discounted market rate units ranged from $2,095 for a studio to $4,495
for a three-bedroom unit. Almost two thirds of market rate units (62.85%) reported no change
in rent, while approximately one quarter of renters (25.57%) experienced a rent increase of
between 0% and 5% and one tenth of renters (10.94%) experienced a rent increase above 5%.
Detailed program data and administrative implementation notes from Program Year 1 are
provided in Attachment A. Data and analysis from Program Year 2 are forthcoming.
In addition to directing the Program Year 1 focus on properties with three or more units,
Council's November 27, 2023 action establishing the Rental Registry Program included direction
for staff to return with an evaluation of potentially expanding the program to all rental
properties, including single-family homes and properties with two or fewer rental units. The
American Community Survey estimates approximately 4,305 rental units on such properties in
Palo Alto, with roughly 4,116 being single-family residences 3. Staff's assessment of this
direction is discussed in the analysis section below.
ANALYSIS
State law protects many renters from certain rent increases under the Tenant Protection Act of
2019 (TPA). At the same time, Costa-Hawkins significantly limits the City’s ability to impose local
rent stabilization.
For covered units, the TPA restricts annual rent increases for units to either 10% or 5% plus the
percentage change in the cost of living (whichever is lower). Notable exemptions include units
built in the last 15 years, units already protected by affordability restrictions, and certain single-
family homes.
Costa-Hawkins places significant limitations on the scope of local rent stabilization programs.
Specifically, it prevents local governments from regulating the residential rent of single-family
homes, condos, or any units built after February 1, 1995.
3 U.S. Census Bureau, U.S. Department of Commerce. "Tenure by Units in Structure." American Community Survey,
ACS 5-Year Estimates Detailed Tables, Table B25032,
https://data.census.gov/table/ACSDT5Y2023.B25032?t=Units+and+Stories+in+Structure&g=160XX00US0655282.
Accessed on 24 Feb 2026
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Costa-Hawkins also requires local rent stabilization programs to include vacancy decontrol –
that is, when a tenancy ends, a landlord must be allowed to set the initial rent for the next
renter notwithstanding local caps.
There were three unsuccessful ballot initiative attempts (2018, 2020 and 2024) to repeal Costa-
Hawkins and therefore reduce barriers to local rent stabilization policies. Meanwhile, the TPA
was enacted in 2019 and expanded in 2023.
If Palo Alto were to establish a local rent stabilization program, it would be limited to following
protections for rental households:
1) Lowering allowed annual rent increases and/or establishing a tenant-initiated rent
increase petition program for units already protected under existing state law, such as:
x Units on market-rate, multi-family properties built before February 1, 1995.
2) Expanding rent stabilization protections to units not protected by existing state law,
such as:
x Affordable housing units not covered by AB 846;
x Duplexes built before February 1, 1995 where one unit is owner-occupied;
x Mobile homes; and/or
x Dorms built before February 1, 1995 (N/A in Palo Alto).
Effects of Local Rent Stabilization Measures
Public and academic opinions on the effects of local rent stabilization measures are mixed.
Furthermore, findings on the effects (positive and negative) of rent stabilization programs vary
by program and by source.
Supporters highlight that those living in units which can be regulated under local rent
stabilization programs benefit generally from increased predictability in housing expenses,
reduced displacement risk, and the promotion of lasting community connections. There is data
that confirms that cities with local rent stabilization policies have lower citywide rates of
residential mobility, however it remains unclear how reduced mobility may affect tenant
welfare.4 In some cases, it may prevent displacement, in others it may limit housing choices
and/or necessitate long commutes.5
Local rent stabilization programs can also provide renters with more direct benefits and
services. For example, Alameda’s rent program refunded $125,918 in invalid rent increases to
4 Chris Alvarez Campbell, Derek Hyra & David J. Schwegman (21 Nov 2025): Evaluating Rent Control Intensity in
California Cities, 2010–2019, Housing Policy Debate, DOI: 10.1080/10511482.2025.2582717
5 Chris Alvarez Campbell, Derek Hyra & David J. Schwegman (21 Nov 2025): Evaluating Rent Control Intensity in
California Cities, 2010–2019, Housing Policy Debate, DOI: 10.1080/10511482.2025.2582717
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80 different rental households in 2024.6 Similarly, Mountain View’s expansive Rent Stabilization
Program reported offering free legal assistance to 51 households through their Housing and
Eviction Help Center in 2022-2023.7 Palo Alto could offer similar direct benefits to those in
covered units, if it were to adopt a local rent stabilization program.
Opponents argue that local rental stabilization programs can have many unintended, negative
consequences. A 2018 policy brief developed by the Terner Center for Housing Innovation at UC
Berkeley confirmed that there is a significant body of literature showing rent controls without
vacancy decontrols – such as those established before Costa-Hawkins was passed in 1995 –
constrain new housing supply and lead to the removal of existing units from the market 8.
However, the data related to the negative consequences of programs with vacancy decontrol is
less clear. A 2025 study of multiple California cities with local rent stabilization programs with
vacancy decontrol found no consistent or significant relationships between the intensity of local
rent stabilizations measures and the citywide rental supply.9 On the other hand, the same study
did find evidence that cities with local rent stabilization policies had median rents $39 higher
than similar cities without these policies, but the relationship was not statistically significant.10
In some cases, there seems to be conflicting data around the potential negative consequences
of rent stabilization. For example, opponents argue that limited income potential may
disincentivize property owners from investing in maintaining or improving their rental units.11,12
Findings from a recent mail survey in Berkeley seem to support this argument with 65% of
renters in rent-stabilized units reporting that their unit was in the same condition as when they
moved in and 62% of renters considering their unit to be in good or excellent condition.13
However, a 1994 report conducted by the City of Berkeley’s Planning and Development
department analyzed the number and value of permits obtained before and during a period of
6 City of Alameda, City Attorney’s Office. Rent Program Annual Report 2024.
2024. https://www.alamedarentprogram.org/files/sharedassets/housingauth/v/1/resources/2024-rent-program-
annual-report.pdf (accessed February 19, 2026).
7 City of Mountain View Rent Stabilization Program. Annual Report FY 2022–23. January 26,
2024. https://issuu.com/mountainviewrentstabilization/docs/2024.1.26_annual_report_fy_22-23_pdf (accessed
February 19, 2026).
8 “Finding Common Ground on Rent Control: A Terner Center Policy Brief.” Terner Center for Housing Innovation at
UC Berkeley. May 2018. https://ternercenter.berkeley.edu/wp-
content/uploads/pdfs/Rent_Control_Paper_053018.pdf (accessed February 25, 2026).
9 Campbell, C. A., Hyra, D., & Schwegman, D. J. (2025). Evaluating Rent Control Intensity in California Cities, 2010–
2019. Housing Policy Debate, 1–25. https://doi.org/10.1080/10511482.2025.2582717
10 Campbell, C. A., Hyra, D., & Schwegman, D. J. (2025). Evaluating Rent Control Intensity in California Cities, 2010–
2019. Housing Policy Debate, 1–25. https://doi.org/10.1080/10511482.2025.2582717
11 “The Effects of Rent Control Expansion on Tenants, Landlords, and Inequality: Evidence from San Francisco.”
Diamond, Rebecca, McQuade, Tim, & Qian, Franklin. 4 March, 2019.
12 National Apartment Association. “10 Unintended Consequences of Rent Control Policies.”
https://naahq.org/news/10-unintended-consequences-rent-control-policies (accessed February 19, 2026).
13City of Berkeley Rent Stabilization Board. 2022 Tenant Survey: Presentation and Results.
2022. https://rentboard.berkeleyca.gov/sites/default/files/documents/2022%20Tenant%20Survey%20Presentatio
n%20and%20Results.pdf (accessed February 19, 2026).
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strong rent controls from 1979 to 1991 and found that there was no evidence that rent controls
reduced expenditures on repairs below pre-rent control levels.14
It is important to note that vacancy decontrol requirements under Costa-Hawkins may also
create incentives that work against the goals of many rent stabilization programs. Specifically,
to regain access to market rents, property owners may be incentivized to threaten or pursue
evictions of long-standing tenants.15 A study of San Francisco eviction filing rates from 2003 to
2013 found that living in a rent-controlled unit increases the likelihood of a tenant’s eviction by
approximately 127% per year.16 According to this study’s authors, this “finding is best
understood not as an inherent characteristic of rent control policy in general, but rather as the
result of specific state-wide laws, passed in the years following the adoption of rent control in
San Francisco, which granted rent-controlled property owners an economic incentive to evict
and the legal means to do so.”17 A local rent stabilization program in Palo Alto would be subject
to the same state-wide laws.
In conclusion, numerous arguments exist both for and against local rent stabilization, but most
lack strong, conclusive data to support them.
Resource Requirements
Staff reviewed recent rent stabilization program operating data from a variety of cities to
determine the resources required to administer different programs. Based on published data
from the peer cities of San Leandro, Mountain View, Alameda and Berkeley, local rent
stabilization programs required dedicated teams of anywhere from six to 29 full-time
employees and total program budgets up to and over $9 million annually. These programs
provided varying levels of services to up to 40,000 units and all had program fees to offset the
program costs at least partially. Staff estimates that expanding Palo Alto’s Rental Registry
Program to include rent stabilization would require approximately five additional full-time staff,
approximately $2 million in additional funding. Net program cost would depend on fees
assessed and based on other organizations, cost recovery is estimated to ramp up over 2-6
years.
14 City of Berkeley Planning Department. Historical Berkeley Rent Control, 1978–1994 (Planning Department
report). 1998. https://rentboard.berkeleyca.gov/sites/default/files/2022-
01/Historical_Berkeley_Rent_Control_1978-1994_1998_Planning_Dept_report%20%281%29.pdf (accessed
February 19, 2026).
15 Gardner, M., & Asquith, B. (2025). The Effect of Rent Control Status on Eviction Filing Rates: Causal Evidence
From San Francisco. Housing Policy Debate, 35(2), 334–354. https://doi.org/10.1080/10511482.2024.2393629
16 Gardner, M., & Asquith, B. (2025). The Effect of Rent Control Status on Eviction Filing Rates: Causal Evidence
From San Francisco. Housing Policy Debate, 35(2), 334–354. https://doi.org/10.1080/10511482.2024.2393629
17 Gardner, M., & Asquith, B. (2025). The Effect of Rent Control Status on Eviction Filing Rates: Causal Evidence
From San Francisco. Housing Policy Debate, 35(2), 334–354. https://doi.org/10.1080/10511482.2024.2393629
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The need for additional funding for a potential rent stabilization program should be balanced
against the City's current fiscal constraints and its efforts to prioritize resources. While program
costs could eventually be recovered, doing so comes at the expense of the landlord, who may
pass these costs through to the tenant despite anticipated local efforts to limit such pass-
throughs. Establishing a rent stabilization program is a significant undertaking requiring
specialized functions, administrative procedures, adjudication, and enforcement. Standing up
the program would require considerable staff time across several city departments, diverting
resources from other priorities at a time when the City is focused on reducing rather than
expanding its workforce.
A brief summary of peer jurisdiction’s rent stabilization programs and commensurate resource
needs are below.
Summary of Peer Program Resourcing
San Leandro established a new rent stabilization and registry program in February 2026. The
program will have six full-time employees in addition to the City’s existing five-person Rent
Board.18 The program requires a $1.3 to $2.2M General Fund loan to initiate both the rent
stabilization and rent registry portions of the program.19 The program will register and
regulate rents for approximately 7,700 units beginning this year.20 San Leandro staff
anticipate the program will achieve full cost recovery though collected program fees over the
next three to six years.21
Mountain View offers another relevant case study. The Rent Stabilization Division of the
Housing Department has 8 full-time employees and supports the City’s five-person Rental
Housing Commission. The Division currently has an approved annual budget of approximately
$2.6M, with recent annual revenues totaling $1.8M.22 Mountain View’s program registers
and regulates rents for approximately 14,500 units.23
18 City of San Leandro, Community Development Department, First Reading of an Ordinance to Amend the San
Leandro Municipal Code by Adding Chapter 4-46 to Establish Residential Rent Stabilization,
https://sanleandro.legistar.com/ViewReport.ashx?M=R&N=Text&GID=191&ID=6605505&GUID=BB2A856A-77CB-
4893-885E-603BADCC2F95&Title=Legislation+Text (accessed February 19, 2026).
19 ibid
20 City of San Leandro, Community Development Department, Draft Residential Rent Stabilization Ordinance and
Preliminary Cost Options, https://www.sanleandro.org/DocumentCenter/View/14185/Powerpoint_101325_Draft-
Rent-Stabilization-Ordinance?bidId= (accessed February 19, 2026).
21 City of San Leandro, Community Development Department, First Reading of an Ordinance to Amend the San
Leandro Municipal Code by Adding Chapter 4-46 to Establish Residential Rent Stabilization,
https://sanleandro.legistar.com/ViewReport.ashx?M=R&N=Text&GID=191&ID=6605505&GUID=BB2A856A-77CB-
4893-885E-603BADCC2F95&Title=Legislation+Text (accessed February 19, 2026).
22 City of Mountain View, City Manager, Adopted Budget Fiscal Year 2025-26,
https://www.mountainview.gov/home/showpublisheddocument/12247/638950076197470000 (accessed
February 19, 2026).
23 City of Mountain View, Rent Stabilization Division, Activity Report Fiscal Year 2025-26,
https://issuu.com/mountainviewrentstabilization/docs/rent_stabilization_division_report_fy_25-26 (accessed
February 19, 2026).
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Alameda’s rent program registers and regulates rents for approximately 16,500 units.24 The
program has five full-time staff housed in the City Attorney’s Office. The current annual
expenses associated with the program total $2M.25 Alameda collected $1.8M in Rent Review
Fee revenue in 2022.26 Petitions and similar issues are resolved by hearing officers and/or the
program administrator.
Berkeley’s Rent Board is supported by 29 full-time employees.27 The program registers and
regulates rents for 40,000 units 28 with a FY 2025-2026 annual budget of just over $9M.29 The
Rent Board reported revenue of just under $7M in FY 2023-2024.30 Berkeley’s Rent Board is
made up of nine elected commissioners.31
Program Considerations
By law, any rent stabilization program must allow a landlord to make a fair return on their
investment. The following program components ensure landlords can make a fair return, as
required:
x Annual general adjustments: Automatically allowed increases in rent based on a
formula determined by ordinance or rent board.
24 City of Alameda, City Attorney’s Office. Rent Program Annual Report 2024.
2024. https://www.alamedarentprogram.org/files/sharedassets/housingauth/v/1/resources/2024-rent-program-
annual-report.pdf (accessed February 19, 2026).
25 City of Alameda, City Attorney, “FY 2023-25 Biennial Budget”,
https://stories.opengov.com/alamedaca/published/KHkeRFzR4J (accessed February 19, 2026).
26 City of Alameda, “FY 23-25 Budget Summaries: Rent Review Fee”,
https://alamedaca.opengov.com/transparency#/69813/accountType=revenues&embed=n&breakdown=types&cur
rentYearAmount=cumulative¤tYearPeriod=years&graph=bar&legendSort=desc&proration=true&saved_vie
w=255143&selection=BD4055BF9DE56E9E99F25064297A4AB0&projections=null&projectionType=null&highlightin
g=null&highlightingVariance=null&year=2025&selectedDataSetIndex=null&fiscal_start=earliest&fiscal_end=latest
(accessed February 19, 2026).
27 City of Berkeley, Rent Stabilization Board, Recommendation to Board on FY 2025/26 Line-Item Budget, Staffing
Model & Expenditure Level,
https://rentboard.berkeleyca.gov/sites/default/files/documents/Budget_Rent_Board_Staff_Report.pdf (accessed
February 19, 2026).
28 City of Berkeley Rent Stabilization Board. “About/Contact Us.”
https://rentboard.berkeleyca.gov/services/aboutcontact-us (accessed February 19, 2026).
29 City of Berkeley, Rent Stabilization Board, Recommendation to Board on FY 2025/26 Line-Item Budget, Staffing
Model & Expenditure Level,
https://rentboard.berkeleyca.gov/sites/default/files/documents/Budget_Rent_Board_Staff_Report.pdf (accessed
February 19, 2026).
30 ibid
31 City of Berkeley Rent Stabilization Board. “Elected Rent Board.” https://rentboard.berkeleyca.gov/elected-rent-
board (accessed February 19, 2026).
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x Landlord-Initiated Petitions: Ability to petition for a greater increase if landlord is
unable to make fair return on their investment from the annual general adjustment.
Programs may optionally include tenant-initiated petitions to help tenants resolve concerns
such as an unlawful rent increase, failure to maintain a habitable premise, or a reduction in
housing services.
To administer these various program components, some cities primarily used their own staff
while others engaged consultants to provide customer support, legal services, administer
hearings, conduct mediations and/or complete property inspections. Some cities used either an
appointed or elected rent board with staff support to hear cases instead of hearing officers.
The City currently offers tenants and landlords (and all community members) access to free,
confidential and impartial mediation services through the Palo Alto Mediation Program to
resolve disputes.32 The Palo Alto Mediation Program is administered by Project Sentinel, a local
nonprofit, on behalf of the City. Chapter 9.72 of the Palo Alto Municipal Code requires landlords
to register with the City and requires parties to respond in many types of disputes involving
rental housing properties.33 Funding from the City is provided annually to support Project
Sentinel.
Rental Registry Program Data Considerations
Viewed alongside the preceding analysis of state law, the effects of rent stabilization measures,
and the resource implications of program administration, the Program Year 1 data offers
additional context. Ultimately, none of the below findings are intended to suggest that
affordability pressures do not exist for Palo Alto renters. Pressures clearly exists in a market at
these price points. Staff’s interpretation of the data in aggregate does not appear to
demonstrate a pattern of widespread, acute rent increases that would warrant standing up a
new local regulatory program.
When considered alongside Palo Alto's limitations under California's Costa-Hawkins Rental
Housing Act, the protections already afforded to many renters through the TPA and expanded
local just cause eviction protections beyond those required by state law under the TPA, and the
relatively narrow universe of units a local ordinance could reach, the practical impact of a rent
stabilization program would be limited. Paired with the significant resource requirements of
establishing such a program and the budgetary constraints currently projected for FY 2026 and
beyond, staff recommend indefinitely deferring implementation of a rent stabilization program
at this time.
Current Data Considerations Summary: Of the 5,174 units included in the rent increase analysis,
approximately one quarter of units (1,323 units; 25.57%) were reported with a rent increase of
32 Palo Alto Mediation. “Home.” https://www.paloaltomediation.com/home (accessed February 19, 2026).
33 City of Palo Alto. “Landlord Resources”. https://www.paloalto.gov/City-Hall/Housing/Tenant-Landlord-Resources/Landlord-
Resources (accessed February 19, 2026).
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between 0% and 5% and one tenth of units (566 units; 10.94%) were reported with a rent
increase above 5%. Nearly two-thirds of units (62.85%) were reported with no change in rent.34
A very small percentage (3 units in total) reported a rent decrease. See Exhibit 1 Figure 9 and
Table 7 in Attachment A for more information.
Arguably, these findings suggest that existing state protections aimed at keeping rent increases
below 10% (or 5% plus the percentage change in cost of living, if that’s lower) for covered units
are functioning largely as intended for the majority of Palo Alto's registered rental units.
Further analysis would be needed to determine what percentage of units that reported a most-
recent rent increase over 5% may have violated state law.35
A meaningful share of the rental stock already operates with some form of market adjustment
based on the self-reported data. About 26% of renter-occupied units carry deed restrictions,
rental assistance, or informal rent discounts, which may reduce the practical reach of additional
rent regulation on the units most in need of affordability protections.
The age of the housing stock is also a relevant consideration. With 74% of registered units in
buildings constructed before 1980, property owners face rising maintenance and potential
retrofit costs. Staff has heard directly from property owners that the market is price-sensitive
and that even modest cost increases are difficult to absorb. Constraints on rent adjustments
could, over time, affect the capacity to maintain these aging properties, a concern that takes on
added significance as the City explores mandatory retrofitting requirements for seismically
vulnerable buildings, which may represent a substantial additional cost obligation for many of
these same property owners.
Palo Alto renters also benefit from existing local protections beyond TPA. The City's ordinance
requiring landlords to offer one-year leases provides tenants with 12 months of rent
predictability at each lease term, addressing one of the more common concerns that rent
stabilization is designed to resolve.
Rental Registry Program Expansion
With respect to Council's direction to evaluate expanding the Rental Registry Program to
include single-family homes and properties with two or fewer rental units, staff recommend
deferring this expansion indefinitely. Program Year 1 was the City's first year administering the
registry, and the process surfaced a number of operational refinements, including unit count
36 Rental Registry Program participants were asked to report both the date and amount of the last rent increase for each unit.
Many participants reported a “$0.00” rent increase for a unit and a corresponding date in the past, confirming that the unit had
not experienced rent increases since that date. For example, reporting of “$0.00” for a rent increase frequently coincided with
known tenancy start dates, meaning that there was no change in rent since initial occupancy. However, some renters have
tenure lengths longer than the date of last rent increase reported as “$0.00,” so it is unknown if those renters had a rent
increase at some point earlier in their tenure.
35 In order to complete this analysis, staff would need to compare the rent increase amount to the TPA rent cap at the time the
rent was increased and then determine that the rent increase occurred in a covered building and was not associated with any
tenancy changes.
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verification against Santa Clara County Assessor data, registration notification challenges
associated with property sales, clarifications around senior housing and condominium
registration requirements, and the deployment of new reporting and payment functionality.
Program Year 2 is the first year in which returning participants are updating existing
registrations, paying the newly adopted registration fee, and using improved event-based
reporting tools. Staff believe it is prudent to allow these processes to mature and stabilize
before introducing a significantly larger population of property owners into the program.
Indeed, the estimated 4,305 units on properties with two or fewer units, predominantly single-
family residences, would require coordination with a substantially larger number of individual
property owners, many of whom may be owner-occupiers who would be exempt from
registration fees and/or would be navigating the program for the first time. Staff have
previously identified that expansion at this scale would require at least one additional full-time
employee.
FISCAL/RESOURCE IMPACT
The recommendation in this report does not have any budget or fiscal impact. However, if Palo
Alto were to pursue a local rent stabilization program or expand the Rental Registry Program
(RRP), it would need to be resourced. Because rental registries are often tied to rent
stabilization programs, many cities fund their rent stabilization program partially or entirely
through rental registry fees. The City’s current Rental Registry Program fee of $35 per unit in
Palo Alto supports approximately one full-time employee and specialized contract work needed
to run the rental registry program at its existing scale. The RRP is currently focused on
establishing and maintaining a multi-family rental unit inventory and does not regulate rents.
This program’s fee for covered units would need to be significantly increased if it were to be the
sole funding source to develop, implement and enforce a local rent stabilization program.
Based on a rough analysis, staff estimate that covered units may need to pay a fee up to or
above $300.00 per unit 36 in order to achieve full cost recovery for an expanded program. While
staff estimate that approximately five additional staff may be needed to run a rent stabilization
program in Palo Alto, the final size of the team needed would be based upon the number of
registered units (which would increase if the program were to be expanded to one- and two-
unit properties), the complexity of the program, the level of customer support provided to both
renters and landlords, the potential use of contracted services, enforcement procedures, and
other factors.
STAKEHOLDER ENGAGEMENT
This agenda item was publicly noticed as part of the March 10, 2026, Policy and Services
Committee meeting. City staff maintains a list of groups and individuals interested in renter
36 For reference, Berkeley currently charges $344 per fully covered unit, Richmond charges $267 per fully covered
unit and Alameda currently charges $170 per fully covered unit.
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protection policy development and the implementation of the rental registry program; an email
advertising the March 10, 2026 Policy and Services Committee meeting and discussion on this
topic was sent to this list after publication of this report. Staff also sent targeted emails to
representatives at the California Apartment Association, Alliance of Californians for Community
Empowerment, Public Advocates, Tenants Together, Palo Alto Forward and Silicon Valley at
Home after publication of this report. Lastly, staff sent an email after the publication of this
report to all property owners and/or representatives who have participated in the Rental
Registry Program to date, upon the publication of this staff report to inform them of this
upcoming policy discussion.
ENVIRONMENTAL REVIEW
Committee action on this item is exempt from review under the California Environmental
Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3), as it can be seen with
certainty that discussion and direction regarding regulation of residential rental units will not
have a significant effect on the environment.
ATTACHMENTS
Attachment A: Program Year 1 (FY 2024-2025) Summary Report
APPROVED BY:
Jonathan Lait, Planning and Development Services Director
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Page 1
CITY OF PALO ALTO
RENTAL REGISTRY PROGRAM
Program Year 1 (FY 2024–2025) Summary Report
Program Overview
City Council established the Rental Registry Program by adopting Palo Alto Municipal Code (PAMC)
Chapter 9.65. The program serves four purposes: understanding the residential rental landscape as
experienced by renters and landlords; supporting data-informed policy decisions that protect
public health, safety, and welfare; promoting community awareness of existing renter protections;
and supporting the City’s Housing Element goals for rental unit protection, preservation, and
production.
The City launched its inaugural registration period on October 1, 2024, running through January
15, 2025, with a grace period extended through April 6, 2025. Per City Council direction, Program
Year 1 focused exclusively on rental properties with three or more units. All information was self-
reported by property owners and property managers. Please see Exhibit 1 to this report for
additional program data analysis.
Registration Results
The program achieved a 95.4% property registration rate (414 of 434 properties) and a 97.9% unit
registration rate (7,653 of 7,821 units) by the close of the grace period on April 6, 2025. See the
summary table below or Exhibit 1 Table 1 for more information.
Registration Status Properties Units
Total Required 434 7,821
The majority of registrations were completed later in the registration period; only 55% of
properties (237) and 33% of units (2,581) completed by the initial January 15, 2025 deadline. The
remaining registrations arrived steadily through the extended grace period. Staff conducted
outreach through postcards, registration letters, direct email campaigns, staff-hosted workshops,
and one-on-one customer service. Only four properties did not complete registration by the close
of the grace period and received administrative citations.
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The 16 exempted properties (an estimated 148–162 units) were deferred to Program Year 2
because recent property sales resulted in new owners not receiving registration notice letters.
Key Findings from Registered Properties
Occupancy and Vacancy Rates
Of the 7,653 registered units, 94.79% were occupied and 5.21% were vacant. Among occupied
units, 93.13% were occupied by renters, 0.98% by property managers, 0.48% by owners, and
0.20% by rent-free occupants. Among vacant units, 3.68% were available for rent and 1.53% were
not available for rent. See Exhibit 1 Table 3 and Figure 1 for more information.
Unit Diversity
The registered rental stock is predominantly composed of smaller units. Studios and one-bedroom
units together account for 58.89% of all registered units. Two-bedroom units represent another
35.14%. Units with three or more bedrooms constitute 5.97% of the inventory. See the summary
table below or Exhibit 1 Table 4 and Figure 2 for more information.
Unit Type Avg. Size (sq ft)Units % of Total
Age of Building Stock
The registered rental stock spans buildings constructed from 1893 through 2022. Nearly half of all
registered units (3,790 units; 49.52%) were built between 1960 and 1979, and nearly three fourths
of registered units were built before 1980 (5,701 units; 74.49%). Only 1,203 registered units
(15.72%) are in buildings constructed after 2000. See Exhibit 1 Figure 3 for more information.
Properties that are 15 years old or newer are exempt from the rent stabilization provisions of the
California Tenant Protection Act of 2019 (TPA).
Amenities, Services, and Auto Parking
Among the most commonly included amenities for renter-occupied units were outdoor common
space (4,010 units), bicycle parking (3,853 units), laundry (3,650 units), and pool/spa access (3,073
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units). Utilities included in rent varied: refuse/recycling was included for 2,953 units, water for
2,916, and sewer for 2,233. Internet (347 units) and cable (370 units) were rarely included. EV
charging was available for 924 units. See Exhibit 1 Figure 4 for more information.
Parking was included in rent for 6,932 units (90.58%). An additional 231 units (3.28%) had parking
available for an additional fee and 410 units (6.14%) had no onsite parking offered. See Exhibit 1
Figure 5 for more information.
Stability and Turnover
Over half of current renters (3,834 units; 53.73%) started their tenancy within three years of the
April 2025 registration close. The next largest group (1,283 units; 17.98%) had tenures exceeding
10 years. Approximately 300 renter households (4.21%) have lived in their units for over 20 years.
See Exhibit 1 Figure 6 for more information.
The most common lease arrangement was a one-year lease (66.63%), followed by month-to-
month leases (28.44%). Under Palo Alto Municipal Code Chapter 9.68.030, all landlords must offer
a one-year lease term in writing, but renters or potential renters may decline this offer in favor of
a shorter, negotiated lease term (such as month-to-month).
Rental Discounts and Incentives
Of 7,127 renter-occupied units, 3,889 (54.57%) were market rate units without formal market
adjustments. The remaining 3,238 (45.43%) renter-occupied units received some kind of market
adjustment. Specifically, 981 units (13.76%) were deed-restricted, 554 units (7.77%) were deed-
restricted with rental assistance or subsidies, 418 units (5.87%) had rental assistance or subsidies,
and 1,285 units (18.03%) were market rate but with other rent discount or incentive, such as a
rent concession during the course of the lease term or an employee housing rate. See Exhibit 1
Table 5, Figure 8, and Table 6 for more information.
Rents for Market Rate Units
Rent data can be reported in aggregate for market rate studio, 1-, 2-, and 3- bedroom units. Rent
data for 4- and 5-bedroom units are known but excluded from aggregate reporting due to few and
potentially identifiable numbers. See Exhibit 1 Table 4, Table 5, and Table 6 for more information.
Median monthly rents for non-discounted market rate units were as follows:
Unit Type Median Rent 25th Percentile 75th Percentile
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3-Bedroom $4,495 $3,993 $4,993
Rent Increases for Market Rate Units and Market Rate Units with Other Rent Discounts
Among the 5,174 market rate units or market rate units with other rent discounts included in rent
increase analysis, almost half of units (2,470 units; 47.64%) reported no change in rent between
October 2022 and April 2025, including units with renters who had been in their unit for less than
one year. Another group of units (787 units; 15.21%) reported no rent increase over an even
longer timeframe, such as since before October 2022 or even beyond five years prior to open
registration. Approximately one-third of units (1,685 units; 32.57%) reported a rent increase
between October 2022 and April 2025. A small number of units (204 units, 3.94%) reported their
last rent increase in the more distant past, since before October 2022 and even beyond five years
prior to open registration.
Of the 5,174 units included in the rent increase analysis, only approximately one quarter of renters
(1,323 units; 25.57%) experienced a rent increase of between 0%-and 5% and approximately one
tenth of renters (566 units; 10.94%) experienced a rent increase above 5%. A very small
percentage, accounting for 3 units in total, reported a rent decrease instead of a rent increase. See
Exhibit 1 Figure 9 and Table 7 for more information.
Some reported rent increases may exceed Tenant Protection Act of 2019 (TPA) limits (5% plus local
CPI, or 10%, whichever is lower). However, the program data notes that caution is warranted in
interpreting these figures: the TPA does not apply to all units, allowable percentages vary year to
year, and some data entry errors may remain in this initial round of self-reported information.
Additionally, it is likely that some of the larger recent rent increases reported in Program Year 1
were associated with a change in tenancy, which is allowed under the TPA; however, change in
tenancy data was not collected during Program Year 1. Staff introduced an occupancy/tenancy
change reporting form in Program Year 2 to better understand the nature of reported rent
increases going forward.
Geographic Distribution
Most registered rental units were located within a half-mile of a commercial area (88.1%) and a
public park (77.6%). The majority of units (59.5%) were within a half-mile of a public school and
were within 500 feet of an arterial road (62.2%). Proximity to transit was lower: 27.4% of units
were within a half-mile of a Caltrain station and 33.0% were within a half-mile of a major bus stop.
Program Administration and Implementation Notes
Data Quality
The initial property inventory relied on Santa Clara County Assessor data. Staff identified minor
unit count discrepancies on approximately 30% of properties, which were resolved through
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systematic verification during registration review. Property owners and property managers reliably
reported accurate unit counts with no instances of over- or underreporting identified.
Property Inventory Refinement
The initial inventory methodology did not capture all 3+ unit rental properties. Staff identified
additional properties, primarily smaller rental properties and those in non-residential zoning
districts, estimated at approximately 852 units across roughly 229 properties. These have been
added to the inventory for Program Year 2.
Registration Clarifications
During implementation, staff clarified several registration requirements. Properties with three or
more units where the owner or manager occupied some units were still required to register.
Condominiums where a single owner holds three or more units and rents at least two were also
included. Units lacking independent cooking, bathing, or sleeping facilities (such as certain Junior
Accessory Dwelling Units) and units in hospitals, skilled nursing facilities, or continuing care
retirement communities were determined not to require registration.
Senior housing presented particular complexity. Some units, while residential in form, either
shared core living facilities or included individualized healthcare services in their rates. These were
exempted through a City-administered affidavit verification process.
Registration Fees
Program Year 1 registration fees were waived by City Council direction. For Program Year 2, City
Council approved a registration fee of $35.00 per unit, with exemptions for owner-occupied units
and units on 100% affordable housing properties. Staff has received feedback from property
owners that the Palo Alto rental market is price-sensitive and that the fee, combined with other
rising costs, may be impactful.
Event-Based Reporting
In addition to annual registration, the program requires property owners to report certain events
as they occur: rent increases, notices to quit, unlawful detainers, and evictions. Rent increases are
the most frequently reported event. Some property owners expressed unfamiliarity with these
requirements, and staff received complaints questioning the need for event-based reporting. In
response, staff released improved reporting forms, clearer rent increase reporting, and a new
optional rent decrease form.
Looking Ahead: Program Year 2
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Program Year 2 (FY 2025–2026) registration opened on October 1, 2025, with the annual open
registration period running through January 15, 2026. The City extended a grace period through
February 16, 2026 and is presently preparing to send administrative citations to unregistered
properties. The program continues to focus on properties with three or more units.
Program Year 2 incorporated the 16 properties previously exempted due to recent property sales
(148–162 units), as well as the approximately 229 additional properties (~852 units) identified
through improved inventory methodology during Program Year 1, and two newly constructed
properties (160 units).
City Council previously directed staff to evaluate potential expansion of the program to all rental
properties, including single-family homes and properties with two or fewer units. The American
Community Survey estimates approximately 4,305 rental units on such properties, with an
estimated 4,116 being single-family residences. Staff has noted that expansion at this scale would
represent a more than 600% increase in the number of property owners requiring coordination
and would require additional staffing. Based on FY 2025–2026 budget discussions, no additional
staffing was requested, and Program Year 2 has proceeded without this expansion.
As the Rental Registry Program’s online portal retains baseline registration information from
Program Year 1, staff anticipate a less time-intensive update process for returning participants,
though learning the new fee payment module will be part of the Year 2 experience.
Attachments
Exhibit 1: Program Year 1 (FY 2024-2025) Supplemental Program Data
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-2025) SUPPLEMENTAL PROGRAM DATA 1
Exhibit 1
CITY OF PALO ALTO
RENTAL REGISTRY PROGRAM
PROGRAM YEAR 1 (FY 2024-2025)
SUPPLEMENTAL PROGRAM DATA
October 30, 2025
Planning & Development Services Department
Rental Registry Program
rentalregistry@paloalto.gov
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-2025) SUPPLEMENTAL PROGRAM DATA 2
Property Inventory and Registration Status
Table 1: Rental Registry Program - Program Year 1 Property Registration Status (as of April 6, 2025)
Registration Status Number of Properties Number of Units
Properties in Completed Registration Status 414 Properties (95.4%) 7,653 units (97.9%)
Properties in Open Registration Status/Payment Pending 4 Properties (0.9%)
Properties Exempted from Program Year 1 Registration Requirement 16 Properties (3.7%)* 148 Units (1.9%)*
Total Number of Properties in RRP Requiring Program Year 1 Registration 434 Properties 7,821 Units
Additional Property Disposition Information
Properties Vetted/Removed from Program Year 1 Property Inventory 6 Properties** N/A
Properties Retained in RRP for Recordkeeping Purposes, but Not Registration 26 Properties*** N/A
Properties/Units Added for Program Year 2 ~229 Properties**** ~852 Units****
Properties/Units Added for Program Year 2 due to New Construction/Occupancy
Notes:
• The anticipated number of rental units in Palo Alto on rental properties with 3+ units (8,673 units) exceeds the American Community Survey estimates (7,545 units), which would be verified at the close of Program Year 2.
• *These properties were exempted from the Program Year 1 registration requirement because property owners did not receive critical registration notice letters because of incorrect contact information due to recent
property sales. Registration of these 16 properties will be required in Program Year 2. The estimated total unit count for these properties ranges from 148 units to 162 units and will be confirmed at Program Year 2
registration.
• **These properties were found to be either residential non-rental/entirely owner occupied (3 properties) or commercial property (3 properties).
• ***These properties are retained in the Rental Registry Program property inventory for administrative/recordkeeping purposes, but not for registration in Program Year 1 or Program Year 2. These properties are retained
because they were either rental properties with two or fewer units (18 Properties) or properties with one or more units as part of a hospital, extended medical care facility, skilled nursing facility, health facility, or continuing
care retirement community (8 Properties).
• ****The unit count for these properties is estimated at ~852 units across ~229 properties.
Table 2: American Community Survey (ACS) Distribution Estimate of Palo Alto Rental Households by Rental Unit Property Type
Mobile
Home
Boat, RV, Van,
etc.
Single Family
Detached
Single Family
Attached Duplex Triplex
and Fourplex
Small Sized
Rental Property
(5 to 9 Units)
Medium Sized
Rental Property
(10 to 19 Units)
Medium Sized
Rental Property
(20 to 49
Units)
Large Sized
Rental Property
(50 or More
Units)
Total
# of Units 89 0 3,289 827 189 715 1,343 1,234 1,621 2,632 11,939
% of Total Units 0.75% 0% 27.55% 6.93% 1.58% 5.99% 11.25% 10.34% 13.58% 22.05% 100%
Source: U.S. Census Bureau, 2019-2023 American Community Survey 5-Year Estimates Table, B25032 Tenure by Units in Structure: https://data.census.gov/table/ACSDT5Y2023.B25032?g=160XX00US0655282.
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-2025) SUPPLEMENTAL PROGRAM DATA 3
Occupancy and Vacancy Rates
Table 3: Program Year 1 Occupancy Rate and Vacancy Rate by Occupancy Type (7,653 Registered Units)
Occupant Type Number of Units Percentage Combined Percentages
Occupied by Owner 37 0.48%
Occupancy Rate 94.79%
Occupied by Property Manager 75 0.98%
Occupied by Renter 7,127 93.13%
Occupied by Rent-Free Occupant 15 0.20%
Vacant - Available for Rent 282 3.68%
Vacancy Rate 5.21%
Vacant - Not Available for Rent 117 1.53%
TOTAL 7,653 100.00%
Figure 1: Program Year 1 Unit Vacancies by Number of Bedrooms in Unit (399 Registered Units)
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-2025) SUPPLEMENTAL PROGRAM DATA 4
Unit Diversity
Table 4: Program Year 1 Rental Units by Number of Bedrooms (7,653 Registered Units)
Unit Type Average Size (sq ft) Number of Units Percentage of Units
Studio ±500 1,197 15.64%
1-Bedroom
2-Bedroom
3-Bedroom
4+-Bedroom +1,500 29 0.38%
TOTAL N/A 7,653 N/A
Figure 2: Program Year 1 Comparison Between Unit Size and Number of Bedrooms in Unit (7,653 Registered Units)
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
0 1 2 3 4 5
Si
z
e
o
f
U
n
i
t
(
S
q
F
t
)
Number of Bedrooms in Unit
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-2025) SUPPLEMENTAL PROGRAM DATA 5
Age of Building Stock
Figure 3: Program Year 1 Number of Registered Rental Units Built by Decade (7,653 Registered Units)
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-2025) SUPPLEMENTAL PROGRAM DATA 6
Amenities and Services
Figure 4: Program Year 1 Amenities/Services Included in Rent for Renter Occupied Units (7,127 Registered Units)
347
370
2953
2916
2233
982
1036
1562
3650
1459
3853
924
2761
3073
4010
2432
853
0 500 1000 1500 2000 2500 3000 3500 4000 4500
Internet
Cable
Refuse/Recycling
Water
Sewer
Natural Gas
Electricity
Outdoor Private Space
Laundry
Storage
Bicycle Parking
EV Charging
Gym
Pool/Spa
Outdoor Common Space
Indoor Common Space
Community Kitchen
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-2025) SUPPLEMENTAL PROGRAM DATA 7
Auto Parking
Figure 5: Program Year 1 Auto Parking Availability for Rental Units (7,653 Registered Units)
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-2025) SUPPLEMENTAL PROGRAM DATA 8
Stability and Turnover
Figure 6: Program Year 1 Tenure Length for Renters (7,136 Registered Units)
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-2025) SUPPLEMENTAL PROGRAM DATA 9
Figure 7: Program Year 1 Lease Lengths for Renter Occupied Units (7,127 Registered Units)
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-2025) SUPPLEMENTAL PROGRAM DATA 10
Occupancy of Market Rate Units and Units with Market Adjustments
Table 5: Program Year 1 Distribution of Market Rate Rental Units Versus Units with Market Adjustments by Occupancy Type (7,653 Registered Units)
Occupancy Type Market Rate Units Market Rate Units with
Other Rent Discount Deed Restricted Units
Deed Restricted Units with
Rental Assistance/
Subsidy
Units with Rental
Assistance/
Subsidy
Other/
Unknown if Market Rate Total
Occupied by Owner - - - - - 37 37
46 10 15 1 3 - 75
Occupied by Renter 3,889 1,285 981 554 418 - 7,127
12 1 2 - 15
Vacant - Available for Rent 22 - 7 3 1 249 282
6 - - - 3 108 117
TOTAL 3,963 1,307 1,003 559 427 394 7,653
Notes:
• Some market rate rental units do not have any rent discounts, whereas others do have some sort of rent discount. Examples of rent discounts in Program Year 1 data include:
o rent concessions, such as a free month during the lease term;
o lower rent rates offered to employees; or
o informal rent discounts, such as a lower rent rate for a family friend or for helping with property maintenance tasks.
• Market rate adjustments include deed-restrictions so that the unit is offered at below the market rate rent at a specified percentage level of area median income.
• Other market adjustments include a unit having some form of subsidy or rental assistance, such as a utility allowance or a Section 8 voucher to cover the difference between what a renter could afford and the market rent for the
unit.
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-2025) SUPPLEMENTAL PROGRAM DATA 11
Figure 8: Program Year 1 Distribution of Market Rate Rental Units Versus Units with Market Adjustments by Number of Bedrooms in Unit (7,105 Registered Units)
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-2025) SUPPLEMENTAL PROGRAM DATA 12
Rents for Market Rate Units
Table 6: Program Year 1 Median Monthly Rent for Market Rate Units by Number of Bedrooms in Unit (5,164 Registered Units)
Number of
Bedrooms
in Unit
Unit
Rent Type Number of Units Median Q1
(25th %)
Q3
(75th %)
IQR
(Inter-quartile
Range)
Min Max Avg Stnd Dev
Studio
Market Rate Unit 338 $2,095 $1,895 $2,395 $500 $0 $3,825 $2,176 483
Market Rate Unit
with Other Rent 118 $2,223 $2,064 $2,334 $271 $1,590 $3,453 $2,283 449
1
Market Rate Unit 1911 $2,600 $2,300 $3,000 $700 $0 $100,120 $2,757 2311
Market Rate Unit
with Other Rent 547 $2,800 $2,565 $3,330 $765 $1,000 $5,800 $2,971 575
2
Market Rate Unit 1463 $3,295 $2,895 $3,846 $951 $400 $398,508 $3,738 10373
Market Rate Unit
with Other Rent 573 $3,531 $3,291 $4,300 $1,009 $1,630 $6,138 $3,815 672
3
Market Rate Unit 167 $4,495 $3,993 $4,993 $1,000 $1,685 $18,000 $4,862 2265
Market Rate Unit
with Other Rent 47 $5,024 $4,929 $5,120 $191 $2,262 $6,694 $4,914 789
Notes:
• Number of Units is the total number of units included in this group (based on bedroom count and rent type). This tells us how large the sample size is — the bigger the number, the more reliable the rent statistics.
• Median is the "middle" rent value — half of the units rent for less than this amount, and half rent for more. This is often the most accurate reflection of typical rent because it isn’t skewed by outliers.
• Q1 (25th Percentile) shows that a quarter of the units rent for less than this amount. This shows the lower end of the rent range.
• Q3 (75th Percentile) shows that a quarter of units rent for more than this amount. This shows the upper end of the typical rent range.
• IQR (Interquartile Range) shows the range between Q1 and Q3 — it shows where the middle 50% of rents fall. A smaller IQR means rents are more consistent. A larger IQR suggests wider variability in rent pricing.
• Minimum is the lowest rent reported, which may sometimes reflect data errors (like a typo or missing zero). It is to be used as a flag, not a benchmark.
• Maximum is the highest rent reported. Like the minimum, maximum may include typos or unusually high figures, which can skew the average — so it's important to view this in context with the median and IQR.
• Average is the total of all rents divided by the number of units. While average gives a general sense of rent levels, it is sensitive to data errors or extreme values (too high or too low).
• Standard Deviation is a measure of how much rent values vary from the average. A low number means most rents are similar; a high number means there’s a lot of variation — which could reflect different unit sizes, locations, or
data errors.
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-2025) SUPPLEMENTAL PROGRAM DATA 13
Rent Increases for Market Rate Units
Figure 9: Program Year 1 Number of Market Rate Units Reported with No Change in Rent by Unit Tenure Length (3,254 Registered Units)
Notes:
• 3,254 units included in analysis; excludes units with rent decreases and date of last increase reporting errors
1277
802
352
184
116
52
56
47
55
37
276
0 200 400 600 800 1000 1200 1400
1 year or less
>1 to 2 years
>2 to 3 years
>3 to 4 years
>4 to 5 years
>5 to 6 years
>6 to 7 years
>7 to 8 years
>8 to 9 years
>9 to 10 years
Over 10 years
Number of Units with No Change in Rent
Un
i
t
T
e
n
u
r
e
L
e
n
g
t
h
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-2025) SUPPLEMENTAL PROGRAM DATA 14
Table 7: Program Year 1 Frequency of Rent Increases and Rent Increase Percentage for Market Rate Units (5,174 Registered Units)
Rent Increase Percentage
Rent Increase
Timeframe Date of Last Rent Increase
Rent
Increase
Reporting
Error
Rent
Decrease
No
Change
0% and
1%
1% and
2%
2% and
3%
3% and
4%
4% and
5%
5% and
6%
6% and
7%
7% and
8%
8% and
9%
9% and
10%
Over
10%
Grand
Total
Between
October 2022
and
April 6, 2025
(October 1, 2024 – April 6, 2025) 3 1 641 28 59 102 100 105 62 20 21 40 6 20 1,208
Prior to Open Registration 8 0 1039 21 86 110 122 103 58 28 16 13 23 11 1,638
Prior to Open Registration 4 1 430 13 36 49 71 90 44 17 5 6 11 8 785
Prior to Open Registration 0 0 249 7 15 11 20 27 15 6 8 8 11 1 378
Prior to Open Registration 0 0 111 3 4 8 5 14 10 1 1 1 5 0 163
Before
October 2022
Prior to Open Registration 0 0 181 1 1 5 11 13 5 0 3 7 4 2 233
Prior to Open Registration 0 0 61 0 0 2 1 0 6 2 2 1 0 1 76
Prior to Open Registration 0 0 59 1 0 0 0 1 0 0 0 0 0 0 61
Prior to Open Registration 0 1 49 1 0 0 1 1 0 0 1 1 0 0 55
Prior to Open Registration 0 0 38 0 1 0 1 2 0 0 1 0 0 1 44
Prior to Open Registration 1 0 29 1 7 5 11 4 4 1 3 0 0 2 68
Prior to Open Registration 2 0 370 0 6 8 10 19 24 5 2 0 6 6 458
Date of Last Rent Increase Reporting Error 0 0 5 0 0 0 0 1 0 1 0 0 0 0 7
Grand Total 18 3 3,262 76 215 300 353 380 228 81 63 77 66 52 5,174
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-2025) SUPPLEMENTAL PROGRAM DATA 15
Notes:
• For Program Year 1 initial registration, the City asked for the current monthly rent for each unit, as well as the initial monthly rent (if known) and the date and amount of last rent increase. Consequently, the City was able to gather
past rent increase information for Palo Alto rental units.
• This analysis reflects rent increase information gathered between October 1, 2024, through the close of the open registration period on April 6, 2025. Initial findings are provided for studio, 1-bedroom, 2-bedroom, and 3-bedroom
market rate units (5,164 units), both without and with some form of rent discount.
• Reported dates of the last rent increase were sorted into the open registration period of October 1, 2024, through April 6, 2025, and otherwise in half year increments prior to the October 1, 2024, start of open registration.
• The California Tenant Protection Act of 2019 (TPA; AB 1482) came into effect January 1, 2020, during the timeframe included in this analysis. Units regulated by TPA are limited to annual rent increases of no more than 5% + local CPI
(CPI = inflation rate), or 10%, whichever is lower. Properties that are 15 years old or newer are exempt from the rent stabilization provisions in TPA.
• Program Year 1 information shows possibility of some rent increases exceeding 5% + local CPI. However, caution is recommended for interpreting this Program Year 1 information for at least the following reasons:
o TPA does not apply to all residential rental units;
o Allowable rent increase percentages vary from year to year;
o TPA does not apply when a rent increase is associated with a change in occupancy;
o Staff were able to filter out clear errors, but other data entry errors might remain; and
o Future reporting may correct data entry errors.
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-2025) SUPPLEMENTAL PROGRAM DATA 16
Geographic Distribution
Figure 10: Program Year 1 Registered Rental Unit Locations (7,653 Registered Units)
Table 8: Program Year 1 Proximity of Registered Units to Special Features (7,653 Registered Units)
Feature Number of Registered Units
within Proximity
Number of Registered Units not
in Proximity
Public schools (1/2-mile radius) 4,553 units (59.5%) 3,100 units (40.5%)
Public parks (1/2-mile radius) 5,935 units (77.6%) 1,718 units (22.4%)
Caltrain stations (1/2-mile
radius) 2,100 units (27.4%) 5,553 units (72.6%)
Major bus stops (1/2-mile
radius; include VTA, SamTrans, 2,528 units (33.0%) 5,125 units (67.0%)
Commercial Areas (1/2-mile
radius) (Only if Possible) 6,744 units (88.1%) 909 units (11.9%)
Arterials (500 foot radius) 4,760 units (62.2%) 2,893 units (37.8%)
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POLICY & SERVICES COMMITTEE
SUMMARY MINUTES
Page 1 of 13
Regular Meeting
March 10, 2026
The Policy & Services Committee of the City of Palo Alto met on this date in Council Chambers
and by virtual teleconference at 6:00 p.m.
Present In-Person: Lythcott-Haims (Chair), Reckdahl, Stone
Absent: None
Call to Order
Chair Lythcott-Haims called the meeting to order. The clerk called the roll and all were present.
Public Comment:
1. David Page expressed concerns about the City helping ICE by sharing traffic camera
footage and requested data sharing with ICE be stopped as soon as possible.
Action Items
1. Nonprofit Partnership Workplan: Follow-up Recommendation on Winter Lodge Tennis
lease extension and Status of Phase I Grant Funding Process. CEQA Status: Not a Project.
Lupita Alamos, Assistant to the City Manager, provided background on the Nonprofit Workplan
Phase II, which stems from an audit report in 2022 that reviewed and recommended best
practices on nonprofit management. Nonprofit guiding principles are 1) impact-oriented focus
and accountability, 2) service alignment, 3) fairness, open access, equity, and inclusion, and 4)
flexibility for special circumstances. Four major bodies of work make up the Nonprofit
Partnership Workplan: NPW Phase I Funding Requests, Nonprofit Lease Agreements, Nonprofit
Multi-year Service Agreements, and comprehensive review of all grant programs including
Human Services Resource Allocation Process (HSRAP) and Community Development Block
Grant (CDBG). The framework discussed by P&S in November 2025 addresses public benefit,
financial relationship, and ensuring stability of the partnership. The Committee determined the
framework is good but wanted more information about the public benefit of Winter Lodge and
Lawn Bowl leases. Winter Lodge operates City leases for the ice rink and tennis courts, which
expire in 2040 and 2026 respectively. The presentation included a table summarizing Winter
Lodge Tennis public access and pricing compared to City rates for similar facilities. The lease
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terms allow pricing to be comparable to the market so funds can be accumulated for continued
maintenance and capital improvements. For the Nonprofit Workplan Phase I process, which
provides a structured approach to evaluate nonprofit funding requests that fall outside
established processes, staff recommends a broader discussion with the Council on purpose and
HSRAP alignment, tentatively scheduled for April 6, 2026. Staff is working on the materials to
give Council a broader, big-picture look at all the nonprofit contracts, including grants and
service agreements. A draft timeline from the packet was presented, which explores options to
keep Phase I within the original plan for the budget adoption process in June.
Public Comments:
1. Linda Jensen, Winter Lodge Executive Director, offered to answer any questions and
highlighted the long and successful partnership with the City of Palo Alto for almost 40
years and Winter Lodge's record of providing award-winning facilities and programs.
Their tennis programs are for all ages and abilities with a special focus on youth, whom
Winter Lodge sees as an at-risk, underserved population in Palo Alto. Linda Jensen
expressed support for recommending the tennis lease renewal to City Council so Winter
Lodge can continue serving the people of Palo Alto.
2. David Siegel, 35-year Palo Alto resident and president of the Palo Alto Pickleball Club,
shared concerns about the Kim Grant/Winter Lodge lease's rent, stating the lease calls
for only $100 to be paid over a 10-year period while Tom Sarsfield pays the City $14K
annually plus a 6-figure revenue share on City-sponsored classes. David Siegel also
shared concerns about the facility's public access, noting that City athletic facilities and
fields are open to the public at no charge when not in use while Winter Lodge charges
$40/hour, though the lease describes intent for public use. David Siegel expressed
concern about proposals to continue the Winter Lodge Lease for 14 more years. David
Siegel recommended 1) Winter Lodge tennis courts be open to the public at no charge
when not in use for instruction and 2) the lease be restructured with market-rate rent or
a revenue-sharing arrangement. David Siegel asserted that a revised lease could provide
meaningful financial benefit to the City, align Winter Lodge with standard practices for
City-owned athletic facilities, expand public access, and offset reduction in tennis court
availability if/when pickleball expands. It was suggested that the lease be extended a
few months rather than rush into a long-term renewal.
Councilmember Keith Reckdahl stated that Winter Lodge is an incredible community asset and
noted that price differences are apples and oranges when comparing their pricing to the City
because Winter Lodge pays for its own maintenance while City facilities are maintained using
taxpayer funds. Councilmember Reckdahl expressed concerns about resident discounts adding
pricing complexity because Winter Lodge would have to verify if someone is a resident, which
the City take that on instead, perhaps via the Enjoy! catalog. Councilmember Reckdahl
highlighted the expense of maintenance and wondered if the City's volume discount on tennis
court resurfacing could be applied to Winter Lodge so they don't have to pay market price,
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which would be a value add and not cost the City anything. Councilmember Reckdahl expressed
overall support for the Winter Lodge lease renewal.
Vice Mayor Greer Stone agreed that Winter Lodge fits within the parameters of nonprofits that
the City wants to support. They offer the third place for many members of the community,
providing recreational opportunities for countless children and adults. Due to the unique nature
of their lease agreement, they need to be fully self-funded, so allowing them to charge for their
facilities makes sense but the idea that the courts are public but not accessible without a $40
fee is problematic. Vice Mayor Stone acknowledged a lack of information on how much Winter
Lodge makes annually and wondered what removing the $40 fee would do to the Lodge's
ability to fund their own upkeep.
Real Estate Manager Sunny Tong confirmed a lack of financial information on Winter Lodge's
operations but noted it can be added as a reporting requirement if needed.
Vice Mayor Stone agreed more financial information would be useful. Vice Mayor Stone noted
that different rates for residents and non-resident complicates things, so making it free is
preferable and staff should have the freedom to pursue that in negotiation but also have the
information to know when it is no longer feasible from Winter Lodge's perspective.
Chair Lythcott-Haims shared about her own family's enjoyment of Winter Lodge and provided
some insight into Winter Lodge's history. Their site was threatened by the owner who wanted
to build condos there, so the citizens got a voter mandate and Winter Lodge land became City
land at the insistence of the voters. The City is required to keep the land for recreation and
programs are run on the site with no funding from the City, which creates the challenge of how
they pay their operating and capital expenses. Chair Lythcott-Haims asked Linda Jensen to
share annual operating expenses and respond to the idea of an alternate fee structure that
would create more sense of benefit for Palo Alto residents.
Linda Jensen responded that the fee comparison between the City's courts and Winter Lodge's
are apples to oranges because taxpayers fund City court expenses but Winter Lodge funds
itself. Linda Jensen suggested that when courts are not in use for classes and lessons, they
could be scheduled at the City rate or less. Linda Jensen emphasized that anyone can walk in
and sign up for classes. Linda Jensen stated the annual operating expenses for tennis are not
separated out from the other expenses but agreed to get that number for staff. Winter Lodge is
a 501(c)(3) operation, so profits can be held over year to year to cover major expenses like
tennis court resurfacing every 5 to 7 years, which now costs $160K for a single resurfacing.
Linda Jensen expressed interest in Councilmember Reckdahl's suggestion of working with the
City to take advantage of their volume discount with resurfacers.
Vice Mayor Stone clarified his earlier comments, stating that Winter Lodge's tennis school is the
only public one in the region, the rates are wonderful, and the classes and clubs for youth
should take precedent but when the courts are available and not being used, such as weekdays
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during school, that is when it makes sense to renegotiate pricing. Vice Mayor Stone asked staff
if members of the public can reserve public courts and what it costs.
Kristin O’Kane, Community Services Director, confirmed individuals cannot reserve City tennis
courts for individual tennis play and they are free.
Councilmember Reckdahl noted the USTA is allowed to reserve public courts when they have
tournaments and some public facilities do have fees, such as Rinconada Pool and Foothills Park.
Councilmember Reckdahl asked about the potential for the City to do Winter Lodge's
maintenance and what the lease charge might be as a result. Lupita Alamos clarified that
Winter Lodge has always fully maintained and operated the courts. Sunny Tong confirmed no
analysis has been done on the possibility of the City doing maintenance.
Linda Jensen shared that the 1985 voter mandate required the site to be operated for
recreation but at no cost to the City. This is also listed in City Ordinance 3650, which requires
the City to provide this site for community skating at no cost to the City. Councilmember
Reckdahl wondered whether the City could roll maintenance costs into the lease. Linda Jensen
said that would be great because resurfacing has become so expensive but the mandate of the
citizens stated it be at no cost to the City and the programs should be able to maintain
themselves.
MOTION: Councilmember Reckdahl moved, seconded by Councilmember Lythcott-Haims, to
recommend the City Council:
1. Approve the Winter Lodge tennis contract and align its term with the Winter Lodge
skating lease,
2. Explore feasibility of mutually beneficial maintenance agreements,
3. Direct staff to engage Winter Lodge through the lease renewal negotiations to explore
opportunities to provide free access to the tennis courts when not in use.
MOTION PASSED: 3-0
Chair Lythcott-Haims called attention to the continued discussion on the Phase I process. Lupita
Alamos reminded the Committee that Phase I information was presented as a status report and
will be continued for discussion with the Council on April 6. Chair Lythcott-Haims expressed
discomfort with the Phase I next steps implying a recommendation to Council and Lupita
Alamos suggested it be presented to Council not as a recommendation but a discussion.
Ed Shikada, City Manager, clarified that the discussion is meant to be done together with
Council to acknowledge the crossover between P&S and Finance that occurred with the new
year. It is an opportunity to make sure everyone is on the same page about the roles of the
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Finance and P&S Committees in the upcoming budget cycle. Staff are not prepared to answer
questions or come to resolutions at this time. It was agreed that Councilmember Reckdahl's
feedback on this item be sent to staff offline and brought to full discussion at the April 6 study
session.
2. Consider Policy Options to Encourage Multi-Family Development in Mixed-Use Districts
(2023-2031 Housing Element Program 3.9(A)) and Potential Recommendation for City
Council on Next Steps. CEQA Status: The Addendum to the Comprehensive Plan
Environmental Impact Report (EIR), approved by the City Council on April 15, 2024,
analyzed potential environmental impacts of the 6th Cycle Housing Element including
Program 3.9(A).
Robert Cain, Principal Planner, shared a presentation on Housing Element Program 3.9(A),
which aims to incentivize housing in areas currently dominated by office use. Robert Cain
emphasized that this is 1 of about 100 Housing Element programs and subprograms and is not
designed to be the primary way to encourage housing in the City but looks specifically at areas
where office is the dominant desire of developers. Palo Alto's housing needs and jobs/housing
imbalance are high and the City is focused on proactive solutions to better align housing needs
and job growth. Four submarkets throughout the City were studied and findings were
confirmed though developer interviews. Office sites outperformed housing at 3 of the 4
locations. This was used as the basis for the rest of the analysis. For policy options, City levers
being considered for locations where office outperforms residential are 1) fees, 2) taxes, 3)
building standards, 4) land use regulation. The Committee was asked to discuss policy options
and provide direction on which, if any, they want pursued.
Ed Shikada expressed amazement that there are 100 programs related to encouraging housing
and opined this is a good illustration of the numerous ongoing efforts.
Robert Cain highlighted that the number of housing initiatives in the last 8 years is
unprecedented and includes area plans, incentives, fees, and other ways to incentivize housing.
Councilmember Reckdahl thanked the team and noted townhouses are very popular but are an
inefficient use of space. Councilmember Reckdahl noted that more density would allow more
housing and asked what can be done to disincentivize townhouses or incentivize density.
Jonathan Lait, Planning and Development Services Director, responded they did not study how
to incentivize density but how office developments impact housing. Jonathan Lait shared that
rental housing is very different from for-sale housing and plays out over decades as developers
get their return through rents, which increase over time. Jonathan Lait noted that other
policies, such as the San Antonio Area Plan, are looking at increasing density in many areas of
the City. Jonathan Lait asserted that townhomes are more accessible entry-level homes and
having a variety of housing types is important.
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Ben Sigman, Managing Principal at Economic & Planning Systems, Inc. confirmed that their
focus was on disincentivizing office and how it relates to housing. This point in the building
cycle favors lower-density and for-sale ownership housing and townhomes are very popular
because they are much less expensive to build on a per-square-foot basis; they sell quickly and
at a premium, so the economics are very strong. When switching to a rental product, the
overall value per square foot is much less than condos or for-sale product, which influences the
economy. The costs associated with building at multi-family densities, which often include
things like structured parking, creates a less favorable revenue-to-cost ratio. Ben Sigman noted
that the other 99 initiatives likely cover things like lowering the cost for multi-family
developers, reducing policy burdens, and contributing directly to project costs. This project
spoke with about 4 prominent developer firms active in Palo Alto who all said they can build
more housing if they are allowed to build at lower densities. Multi-family is likely to come into
favor again but today's economics are very challenging for dense housing.
The Committee reviewed the 4 main lever options for incentivizing residential and agreed
against the tax option. It was noted that the building standards option, which would increase
standards and thereby building costs, seemed to be a punitive approach to disincentivizing
office. Councilmember Reckdahl suggested that limiting office FAR and increasing it for
residential is most effective but noted relaxing FAR for residential complicates urban planning
by modifying already modified zoning. Councilmember Reckdahl expressed concern around
grandfathering practices around existing offices and how that can affect developments and
redevelopments.
Jonathan Lait highlighted other initiatives the City has implemented to incentivize housing and
reiterated that Housing Element 3.9(A) is focused on disincentivizing office. Jonathan Lait
agreed that FAR is one of the best levers in this area and cautioned against standard reductions
that freeze current office in place, never to be redeveloped.
It was noted that 3,371 new housing units are currently in the pipeline. Vice Mayor Stone
celebrated this number as evidence that policies and implementation over recent years are
paying off. Vice Mayor Stone opined there is not much more to be gained from the land use
regulations option but the building standards and fees options are interesting. Vice Mayor
Stone asserted that the building standards should require Project Labor Agreements on any
development, especially City projects. It is an opportunity to require labor contracts in
construction projects, which is morally right, fits within City goals of livable wages and adequate
working conditions, and has the added benefit of incorporating higher business and building
standards to make housing more attractive to developers. Vice Mayor Stone acknowledged it
could be challenging for the full Council and community to accept but this is a great opportunity
to try it out. Vice Mayor Stone suggested that increasing fees on office development is a great
way to disincentivize new office and encourage housing; current fees are $68.50 per square
foot, far below the 2015 nexus study's determined maximum of $177 per square foot.
Chair Lythcott-Haims offered that FAR is already being limited and there are square footage
caps in place, so that is not something to tinker with right now. Chair Lythcott-Haims expressed
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concerns about using desirable design standards like skilled and unionized labor, TDM, and
increased community benefits to disincentivize building. Chair Lythcott-Haims agreed that the
City is not charging near what it could in fees per the 2015 nexus study.
Public Comment:
1. Jeremy L. thanked the Committee and staff for their hard work and stated support for
the City's efforts to implement the Housing Element. Jeremy L. stated that proposals to
disincentivize office may have value on their own but are not clearly furthering the
Housing Element goal to support housing in mixed use zones because there is not much
office being proposed in mixed use zones. The picture of the pipeline is partly a picture
of the City's real, meaningful progress and partly a picture of unplanned housing that
came from things like the builder's remedy. Jeremy L. noted that studying and
decreasing impact fees for housing and updating zoning in the downtown area and Cal
Ave can make a big difference and streamlining permitting can go hand-in-hand with
zoning. Jeremy L. asserted that the City should work on facilitating a zoning and fee
regime that makes it quick and easy to build housing in the places the City wants
housing. Jeremy L. acknowledged this is like preaching to the choir because much of this
is already in progress.
MOTION: Vice Mayor Stone moved, seconded by Councilmember Reckdahl, to forward for City
Council’s consideration:
1. Require PLAs for new office development,
2. Additional building standards for new office development as appropriate,
3. Increase the commercial linkage fee for office development.
MOTION PASSED: 3-0
3. Discussion of the Rental Registry Program First Year Report and Rent Stabilization
Analysis, Including Recommendations to the City Council to Not Expand the Rental
Registry Program to Properties with Two or Fewer Units and to Defer Further
Consideration of a Possible Rent Stabilization Ordinance. CEQA: Exempt pursuant to
CEQA Guidelines Section 15061(b)(3).
Julia Knight, Senior Program Manager for Development Services, presented an outline of
several renter protection policy options and stated the staff recommendation to indefinitely
defer further discussion of expanding the Rental Registry Program (RRP) or establishing a local
rent stabilization program at this time. The presentation included a timeline of key policy
developments and an overview of further P&S discussions on the calendar. Julia Knight shared
that the RRP's first year provides a clearer picture of the City's rental landscape and offers
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useful insights for policy discussion. The first year saw very high participation with a 97.9
percent unit registration rate. Several slides covered information collected from the program's
first year, including rental housing and market data (Attachment A). Expansion considered for
the program would include 1 and 2-unit properties, which would increase staff by 1 to 2 full-
time employees and double the registry fee per unit to cover costs. A local rent stabilization
program, if implemented, would need to remain within limits set by Costa-Hawkins Rental
Housing Act of 1995 and the California Tenant Protection Act (TPA) of 2019. Staff examined
programs in nearby peer cities and estimated a rent stabilization program in Palo Alto would
require 6 full-time employees, an annual budget of $2M, and an increase in the Rental Registry
Program fee to over $300 per unit. Staff recommended the P&S discuss findings from the first
year of the Rental Registry Program and recommend the Council indefinitely defer expanding
the program and further analyze or prepare a draft ordinance related to a possible future rental
stabilization program.
Public Comments:
1. Martha Stern is owner and manager of a 7-unit residential building in Palo Alto and has
owned the building for close to 18 years. Martha Stern expressed doubt that the
benefits of the Rental Registry outweigh the cost. While the information gathered is
interesting, the cost ends up being paid by renters. Martha Stern noted the cost of living
challenges in the Bay Area, including property insurance rising 140 percent from 2023 to
2025. Martha Stern emphasized the State already has a strict rent increase ceiling and
implored the City to leave it to the State. Martha Stern currently raises rent 1 to 3
percent a year to cover cost and keeps increases low to avoid unit turnover. A cap of 1
to 2 percent increase would force some landlords to increase rent the maximum
amount in order to bank for future cost increases. Martha Stern shared that an
unintended consequence of the rental registry is the public listing opens exposure to
charges for a myriad of reasons, all of which will be passed on to tenants.
2. Anil Babbar from the California Apartment Association spoke in support of the staff
recommendation and thanked them for the work that went into this report. Anil Babbar
noted the RRP data shows Palo Alto housing providers making rent decisions based on
the market, which has led to nearly two-thirds of market-rate units receiving zero rent
increases and a quarter of them receiving a rent increase below 5 percent, so the
recommendation to indefinitely defer a rent stabilization program is a data-driven one.
Anil Babbar pointed out a comparative study done by the Los Angeles Times that
concluded San Diego has higher development and unit count than L.A. in part because
L.A. has rent control and San Diego does not. Anil Babbar suggested that adoption of a
Rent Control Ordinance would add to the policy burden and make it harder to
incentivize multi-family housing.
3. Eileen Kim asserted that the registry creates a climate of surveillance and bureaucracy
that deters mom-and-pop housing and is redundant because California already has
robust statewide rent control under AB 1482. Eileen Kim noted that several peer cities
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have rejected registries because it was too heavy for a city of their size and an exercise
in redundancy. Eileen Kim stated the City is spending public funds to build a shadow
registry for information that already exists for free on platforms like Zillow, Trulia, and
MLS, costing taxpayers $2M annually to research a problem that does not exist. Eileen
Kim noted that builders will see this registry as a headache, expense, and invasion of
privacy, which creates a barrier to the housing the City wants to create. Eileen Kim
pointed out that the Registry exposes residents to data brokers and predatory
marketing and urged the City to discontinue it.
4. Jennifer L., Palo Alto resident of 26 years, spoke in support of removing rent control
from the City's agenda. Though it protects some people temporarily, rent control scares
investors away, makes it hard to find housing, and is bad for the economy. The data
from staff showed most landlords did not increase rent at all and those who did
increased only moderately, so rent control is not necessary for Palo Alto. The cost of
owning homes is increasing, with insurance more than doubling in the past year and
maintenance and utilities also increasing. Jennifer L. emphasized the $2M expense and
asked P&S not to implement it.
5. Hamilton H. expressed support for the staff's thoughtful recommendations, especially
not expanding to 1-person units, which are individuals who are non-professional
property managers and are busy with their kids, working overtime, and trying to hold
their lives together. If they have to go through this bureaucracy, they are going to be
pushed toward doing Airbnb, regardless of if it is legal. Hamilton H. emphasized the data
that showed landlords not raising rent at all or very little, which shows there is no
problem. Hamilton H. called attention to the City's budget problem and how this will
contribute to that as well as creating a privacy issue for residents. Hamilton H. noted
that the registry form is designed for multi-family professional properties and is out of
touch with individual renters. Hamilton H. asked P&S to follow staff recommendation
and realize City effort and funds can do much more valuable things.
Councilmember Reckdahl stated the Rental Registry is good information from a policy
perspective and while data on 1 and 2-bedroom units is desirable, the cost does not justify it.
Councilmember Reckdahl stated there is no need for rent control or stabilization and
highlighted the many unintended consequences that would go with it.
Vice Mayor Stone expressed support for the staff recommendation but noted the importance
of the Rental Registry Program in bringing important data that informs decision-making. The
RRP surpassed expectations for data and registration rate, thanks to staff and property owners.
Vice Mayor Stone stated there is no strong need to continue pursuing a Renter Stabilization
Ordinance at the moment because the data does not show it is necessary and the significant
cost is alarming. Vice Mayor Stone believed the Council may revisit the ordinance after the City
comes out of its deficit if the data shows a need for it. On expanding the RRP to 1 and 2-
bedroom units, Vice Mayor Stone agreed the data would be helpful but is not a top priority.
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Jonathan Lait noted the annual report will provide some insight into whether the issue needs
revisiting at some point.
Chair Lythcott-Haims agreed on not expanding the RRP to include 1 and 2-bedroom units, which
are single-family homes. Chair Lythcott-Haims empathized with landlords about the challenges
a new administrative requirement would pose and agreed with the staff report's statement that
State protections aimed at keeping rent increases low are functioning as intended for the
majority of Palo Alto's registered rental units. Chair Lythcott-Haims asked how the Fair Chance
Ordinance is related to, different from, or enhancing to this.
Julia Knight clarified that the Fair Chance Ordinance would provide additional anti-
discrimination protections for renters. It does not regulate rent but creates opportunities for
more people of diverse backgrounds and histories to access the rental market in Palo Alto.
MOTION: Councilmember Reckdahl moved, seconded by Councilmember Stone, to recommend
the City Council defer indefinitely:
1. An expansion of the rental registry program to properties with two and fewer units,
2. Further analysis or preparation of a draft ordinance related to possible implementation
of a local rent stabilization policy.
MOTION PASSED: 3-0
AA1. Recommend Approval of New Task Order 4.42 - Flock Safety Assessment for Inclusion in
the City Auditor's FY 2026 Audit Plan and Amend FY 2026 Task Order budgets to Support
this New Task Order with a Net Zero Financial Impact; CEQA – Not a project.
City Auditor Kate Murdock shared that the City reviewing Flock as a vendor is important but
Baker Tilly completed its conflict-of-interest check and recused itself from this assessment to
avoid a conflict of interest. As the City and vendor coordinate to set the scope for the
assessment, specific firms can be recommended to conduct this work. Baker Tilly will also
commit previously identified funds for the proposed assessment from the City auditor's
contracted budget.
Ed Shikada confirmed Baker Tilly will not be able to proceed with the audit and this item is an
opportunity for public input and recommendation from the Committee to the Council on next
steps.
Chantal Cotton Gaines, Deputy City Manager, clarified the Committee may recommend going
forward with an audit or discuss the scope of that audit but a general discussion of the benefits
of ALPR or whether or not to move forward with the Flock contract is beyond the scope of this
agenda item.
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Public Comments:
1. Austin M. appreciated the update that Baker Tilly is not handling the audit but asserted
that no audit can assuage concerns about Flock, ALPR in general, and the inherent risks.
Austin M. acknowledged it is not on the agenda but encouraged the Committee to focus
on canceling the Flock contract and cautioned them from relying on an audit to make
future decisions.
2. David Page from Midtown suggested ICE will be getting ALPR data from Flock and using
it to support their activities. David Page requested the Committee do the right thing by
shutting off the cameras now and getting out of the Flock contract when it expires in
June.
3. Cara Silver, long-term Midtown resident, stated it is unfortunate that the conflict of
interest was not caught sooner, as the data related to it was in the staff report. Cara
Silver stated the audit is unnecessary. California Sanctuary State Law SB 54 prohibits
cities from sharing personal information about immigration status with ICE and the
proposed audit fails to address this particular issue. Cara Silver stated Flock has
submitted data to federal agencies, such as in recent breaches in Colorado. Peer cities
have cancelled or delayed entering into contracts with Flock. Cara Silver noted there are
no federal or state regulations of the ALPR system and the recent proposed state
regulation was vetoed by Governor Newsom. Cara Silver stated that one of the cameras
in Palo Alto is located on the corner where many protests take place and urged the
Council to turn off the cameras.
4. Hamilton H. expressed strong support for the City to conduct a Flock Safety audit and
stated that Baker Tilly recusing itself is a positive development. Hamilton H. suggested
the audit should assess whether at least 2 PAPD staff are trained at the highest
administration level so the system can be properly configured and monitored at all
times. PAPD admin should review new software releases and notes promptly to ensure
settings remain properly configured. Hamilton H. disagreed with fellow residents who
want the system shut down because only 30 days of data is returned before it is purged
on the Flock servers, no out-of-state agency searches resulted in data being shared, the
data is only available to properly trained staff with legitimate enforcement needs, all
queries are logged and subject to audit, and all out-of-state access was automatically
disabled as of March 2025 across all Flock systems in California. Hamilton H. insisted
that ALPR cameras make the community safer and should remain in operation.
5. Anne M. opposed the ALPR cameras and questioned the need for an audit, suggesting it
is a backward-looking operation and evidence of uncertainty. Anne M. emphasized that
many cities in the county have discovered leaks from Flock data despite the assertion of
no public data sharing. Anne M. stated Baker Tilly recusing itself is proper and supported
the City auditor and police department taking a look at what has been happening with
Flock camera data. Anne M. asked the City to remove the inherent risk and danger
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SUMMARY MINUTES
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Policy & Services Committee Meeting
Summary Minutes: 3/10/2026
presented by the cameras to residents' First Amendment rights and privacy by capping
and turning off the cameras until the issues are resolved.
6. David preferred the Flock contract be cancelled, as Flock is a bad actor and lies
repeatedly. David posed several questions: 1) How does Flock ensure future changes to
their system will not lead to sharing outside of California or the City? 2) How can the
City ensure that federal law enforcement cannot gain access to the system, including
unauthorized credential sharing by in-state agencies? 3) What will the City's data be
used for when there is a focus on machine learning and sales data in and after the
contract terms? David noted that Flock retains data after cancellation and can do what
they want with it, such as training AI models, so more clarity is needed on what will
happen to the City data. David suggested that any audit done should be thorough.
The Committee agreed that the entirety of the question around the Flock contract needs to
come before the Council. Vice Mayor Stone expressed concern about the timeline for
addressing this and whether the Council can make a full decision while an audit is pending or if
the cameras can be turned off in the interim.
Ed Shikada responded that if an alternative service provider is found at $30K, staff can proceed
with the audit without Council approval. The Council agendas are packed through June, so the
Committee needs to clarify their sense of urgency about this item to determine when to put it
on the Council agenda. Ed Shikada also clarified that the Flock contract does not end in June but
extends for another year or two and noted they would not suggest the cameras be shut off
absent further direction from the Council.
The Committee discussed the risks of ALPRs and their potential for good and bad and debated
whether an audit is necessary to determine whether to continue with or terminate their
contract with Flock. It was suggested that the Independent Police Auditor could be a good
resource in auditing Flock in terms of City and Police Department policies and procedures.
Chair Lythcott-Haims expressed a feeling of urgency for this larger question of the contract with
Flock to come before the Council sooner than later. The Committee agreed this item should
come before the Council before July recess. Vice Mayor Stone added that it should be an action
item to give flexibility to make a decision.
Ed Shikada agreed to set expectations for the timeline when setting up their report to Council
and stated staff direction is to continue working with the IPA and independent auditor to bring
as much factual data and information to a Council discussion no later than June.
Councilmember Reckdahl suggested a study session where the Council can learn about the
situation, what happened, why Palo Alto did not lose data while other cities did, and how City
data is not going to ICE.
Vice Mayor Stone agreed the community needs to be updated on the facts because there is a
lot of troubling misinformation. Vice Mayor Stone asked if upcoming city manager comments
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SUMMARY MINUTES
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Policy & Services Committee Meeting
Summary Minutes: 3/10/2026
could concede time to the acting police chief to speak directly to the community about this and
show that the City is on top of it and their data is safe.
Chair Lythcott-Haims agreed that factual information and reassurances to the public are
important and should not be delayed.
NO ACTION
Future Meetings and Agendas
Chantal Cotton Gaines reported that the next meeting is set for Tuesday, April 14, and the
tentative items include legislative updates; the Fair Chance Housing Ordinance, which may
move to May; and 2 audit reports.
Adjournment: The meeting was adjourned at 8:50 p.m.
Item 4
Attachment B - March 10,
2026 Summary Minutes
Item 4: Staff Report Pg. 52 Packet Pg. 80 of 441
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: June 1, 2026
Report #:2603-6178
TITLE
Approval of and Authorization to execute Purchase Orders with Jensen Precast and Oldcastle
Infrastructure for the Purchase of Electric Utility Underground Boxes Not to Exceed $800,000
per year, for a Total Aggregate Not-to-Exceed Amount of $4,000,000 for Five Years; CEQA
Status – Not a Project.
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or their designee to
execute purchase orders as requested by the Utilities Department with Jensen Precast and
Oldcastle Infrastructure for the purchase of electric utility underground boxes not-to-exceed
$800,000 per year for a total aggregate amount not-to-exceed $4,000,000 for five years.
EXECUTIVE SUMMARY
The Utilities Department is requesting Council approve and authorize the purchase orders for
precast concrete underground utility boxes and equipment pads with aggregate annual
expenditures of up to $800,000 per year, for a total aggregate not-to-exceed amount of
$4,000,000 over five years.
Underground boxes and equipment pads are essential components of the City’s electric
distribution system, supporting capital improvement projects, system upgrades,
undergrounding efforts, and new customer connections. Due to increasing infrastructure
demands and capital project activity like Grid Modernization, current annual spending limits
have become insufficient to meet operational needs.
Through a formal prequalification process, Jensen Precast and Oldcastle Infrastructure were
evaluated and determined to meet the City’s technical, quality, and delivery requirements.
Establishing multiple prequalified manufacturers will enhance supply reliability, maintain
competitive pricing, and improve responsiveness to project and service demands.
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Under this authorization, the Utilities Department will procure materials on an as-needed basis
by soliciting competitive quotes from the prequalified vendors, ensuring best value while
maintaining flexibility.
BACKGROUND
ANALYSIS
Ability to meet CPAU technical and structural specifications
Compliance with applicable industry standards
Demonstrated manufacturing capacity and quality control processes
Delivery lead times and supply chain reliability
Product performance history and utility references
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Ability to accommodate City-standard designs and custom configurations
Following evaluation, Jensen Precast and Oldcastle Infrastructure were determined to meet the
City’s requirements and were selected as prequalified manufacturers.
Both manufacturers maintain a significant operational presence within California, with regional
production facilities capable of fabricating and delivering heavy precast concrete products to
the Bay Area. Underground vaults and transformer pads can weigh several thousand to over
20,000 pounds, requiring specialized handling and transportation. Having manufacturing
facilities in relatively close proximity to Palo Alto reduces transportation time, lowers risk of
delivery delays, minimizes freight costs, and improves responsiveness for urgent or unplanned
system needs. Local production capability also helps mitigate supply chain disruptions and
supports timely delivery for capital projects and customer service installations.
The City’s standard underground boxes and pads that will be procured under this authorization
include, but are not limited to:
Standard primary splice vaults (e.g., 4’x8’, 5’x10’, and 6’x12’ configurations)
Secondary/service pull boxes (traffic-rated and non-traffic-rated)
Three-phase pad-mounted transformer pads (various kVA sizes)
Single-phase transformer pads
Switchgear and sectionalizing switch pads
Vaults and large equipment enclosures for downtown installations
As materials are required, staff will solicit competitive quotations from the prequalified
manufacturers. Purchase orders will be issued based on technical compliance, delivery
schedule, and lowest evaluated price.
Accordingly, staff requests authorization to spend up to $800,000 per year in aggregate with
the two prequalified manufacturers for a five-year period, for a total not-to-exceed amount of
$4,000,000. This structure maintains competitive pricing while providing operational flexibility
to meet infrastructure needs. The materials come in various sizes and styles to meet unique
design requirements and field conditions. With multiple prequalified manufacturers, the City
will have more available options and lowest pricing to select from.
Any additional manufacturer may request prequalification in the future and will be evaluated
using the same established criteria and under the same aggregate term of $800,000 per year or
$4,000,000 over the five-year period.
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FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
APPROVED BY:
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: IT Department
Meeting Date: June 1, 2026
Report #:2603-6181
TITLE
Approval of Purchase Order C27197327 with Carahsoft Technology Corporation to Procure
DocuSign eSignature Software, Utilizing OMNIA cooperative contract no. R240303 for a One-
Year Term for a Total Not-To-Exceed Amount of $145,180; CEQA Status - Not a Project.
RECOMMENDATION
Staff recommends that City Council approve and authorize the City Manager or their designee
to execute Purchase Order C27197327 with Carahsoft Technology Corporation, utilizing an
OMNIA cooperative contract no. R2403031, to procure DocuSign eSignature software for a one-
year term through July 31, 2027, with a total Not-To-Exceed amount $145,180.
BACKGROUND
City of Palo Alto began using DocuSign on April 30, 2015, to improve operational efficiency by
enabling digital signatures, electronic forms, and automated workflows.
In July 2018, the City procured DocuSign services through Carahsoft Technology Corporation
using the State of California Multiple Award Schedules (CMAS), achieving approximately 50%
savings off list price and leveraging pre-negotiated terms and conditions. The purchase was
made under PAMC section 2.30.360(j) through a CMAS cooperative purchasing agreement. The
City renewed DocuSign services through CMAS in 2019, 2020, and 2021. On September 27,
2021, City Council authorized Purchase Order C22183161 with Carahsoft for a three-year term
(August 23, 2021 - August 22, 2024), with annual fees of $126,753 and a not-to-exceed amount
of $380,2582.
1 OMNIA Software Solutions and Services Contract R240303:
https://www.omniapartners.com/suppliers/carahsoft/public-sector/contract-documents#contract-2098
2 September 27, 2021 Report, Item #6, page 67, is available to view at
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=2282&dbid=0&repo=PaloAlto&searchid=2a644ec9-
3994-454c-90bc-d82144741806
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Following the CMAS term, City Council approved extensions through OMNIA cooperative
contracts. On September 9, 2024, Council approved Purchase Order C25192371 under OMNIA
contract no. 23-6692-0115 to extend services through August 2025, not-to-exceed $125,9655.
On August 18, 2025, Council approved Purchase Order C26195602 under OMNIA contract no.
R240303 to extend services through July 31, 2026, not-to-exceed $145,1806.
ANALYSIS
2 emissions avoided, and 23,878 pounds of printing-,
postage-, and storage-related waste eliminated.
2023: 25,671 envelopes
2024: 25,480 envelopes
2025: 26,152 envelopes
Envelopes purchased: 28,000
Envelopes used to date: 15,852
Projected usage by end of term: 24,242
Active users: 484 staff
Average time to fully execute a document: 3.1 days
Transactions completed within 24 hours: 63.6%
5 September 9, 2024 Report, Item #11, is available to view at
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82997&dbid=0&repo=PaloAlto
6 August 18. 2025 Report, Item # 11, is available to view at
https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=83556&dbid=0&repo=PaloAlto
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to use competitively solicited terms and pricing, including faster deployment, discounts off
MSRP, expedited response times, and 24/7 support.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
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Government - Price Quotation
Docusign Government at Carahsoft
11493 Sunset Hills Road | Suite 100 | Reston, Virginia 20190
Phone (703) 871-8500 | Fax (703) 871-8505 | Toll Free (888) 662-2724
www.carahsoft.com | sales@carahsoft.com
TO:Sherrie Wong
City of Palo Alto
PO Box 10250
Palo Alto, CA 94303 USA
EMAIL:AccountsPayable@CityofPaloAlto.org
PHONE: (650) 617-3152
FROM:Meagan Phillips
Docusign Government at Carahsoft
11493 Sunset Hills Road
Suite 100
Reston, Virginia 20190
EMAIL:Meagan.Phillips@carahsoft.com
PHONE: (703) 581-6727 FAX: (703) 871-8505
TERMS:OMNIA Software Solutions and Services contract: R240303
Term: January 1, 2025 - December 31, 2027
FTIN:52-2189693
Shipping Point: FOB Destination
Credit Cards: VISA/MasterCard/AMEX
Remit To: Same as Above
Payment Terms: Net 30 (On Approved Credit)
Sales Tax May Apply
QUOTE NO:64483653
QUOTE DATE:04/21/2026
QUOTE EXPIRES:07/01/2026
RFQ NO:
SHIPPING:ESD
TOTAL PRICE:$145,180.00
TOTAL QUOTE:$145,180.00
LINE NO.PART NO.DESCRIPTION -QUOTE PRICE QTY EXTENDED PRICE
1 DSI-0000488 eSignature Enterprise Pro for Gov - Envelope(Annual)
DocuSign, Inc. - DSI-0000488
Start Date: 07/01/2026
End Date: 06/30/2027
$4.2500 COOP 28,000 $119,000.00
2 DSI-0000148 Enterprise Premier Support 22% of Recurring Fees (22%
of List Price per $100 of List License Fees). Annual
DocuSign, Inc. - DSI-0000148
Start Date: 07/01/2026
End Date: 06/30/2027
$26,180.00 COOP 1 $26,180.00
SUBTOTAL:$145,180.00
TOTAL PRICE:$145,180.00
TOTAL QUOTE:$145,180.00
Please reference quote #64483653 along with ONMIA- Region 4- R240303 contract number onto Purchase Order.
Product Details
eSignature Envelope Allowance: 28,000
Overage/Usage Fees
eSignature Enterprise Pro for State and Local Government - Envelope: $12.32
Order Special Terms
Both parties hereby agree that the following Subscription(s), identified by their Subscription # and
Order Start Date, will be terminated upon the Order Start Date of this Order Form:
August 01, 2025: Subscription # SUB-3451779-1 (Q-58281526)
A prorated credit for the prepaid portion of the remaining Term of all the above Subscription #(s)
will be applied toward outstanding invoices and/or payment for this Order Form.
If Customer elects to renew its subscription with DocuSign for the same length of Term as
described in this Order Form, DocuSign agrees that the price for such subscription will not
increase over the previous Term for the same type eSignature Enterprise Pro for State and Local
Government - Envelopes, estimated Envelope Allowance and quantity of subscription(s) as
described in this Order Form. This offer applies to two one-year renewals only and does not
apply to any third-party products, Professional Services or new products not included in this
original Order Form.
This Order Form includes a total of Credits (the “Credit Allotment”), which can be used
throughout the Term, subject to the below Conditions (in addition to the terms of the Agreement).
Conditions:
1. Customer’s Credit Allotment begins consuming as of the Order Start Date, expires at the
CONFIDENTIAL
PAGE 1 of 3
QUOTE DATE:04/21/2026
QUOTE NO:64483653
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Attachment A - Carahsoft -
Docusign - Quote No.
64483653
Item 6: Staff Report Pg. 4 Packet Pg. 88 of 441
Government - Price Quotation
Docusign Government at Carahsoft
11493 Sunset Hills Road | Suite 100 | Reston, Virginia 20190
Phone (703) 871-8500 | Fax (703) 871-8505 | Toll Free (888) 662-2724
www.carahsoft.com | sales@carahsoft.com
end of the Term, and does not roll over at the end of the Term.
2. Use of Features will result in Credit consumption as listed at (“rate card”): IAM Platform
Rate Card
3. Customer’s use of eSignature Features listed on the rate card prior to the provisioning of
IAM will also consume credits from Customer’s Credit Allotment. For clarification, this
also applies if the Order Start Date is prior to the Order Form execution date.
4. Docusign may release new Features in the future that will require Credits to be
consumed in order to be used. Such Features will be consumed from Customer’s Credit
Allotment at the then-published rate of such Features.
5. Customer acknowledges and agrees that even though Docusign Navigator is included
and available as part of its purchase of the Docusign Services listed on this Order Form,
Customer has the option, at any time during the Term, to request that Docusign
Navigator functionality be turned on. Docusign will use commercially reasonable efforts
to turn on the Docusign Navigator functionality as soon as practicable.
6. Docusign will make commercially reasonable efforts to notify Customer of any Credits
that may be consumed in excess of Customer's Credit Allotment; provided that,
notwithstanding the foregoing, Customer will remain responsible for managing their use
cases and the way in which such use cases consume Customer’s Credit Allotment. If
Customer consumes their Credit Allotment prior to the Order End Date, the Parties agree
to negotiate in good faith any subsequent renewal based on the usage during the Term.
Terms & Conditions
Customer Data uploaded into a Docusign eSignature Government Product will be hosted
within Docusign’s FedRAMP Moderate authorized boundary. “FedRAMP” means the Federal
Risk and Authorization Management Program.
Docusign eSignature Government Products include features and functionality that allow
Customers to connect to other Docusign products or to third-party products or services for
interoperability purposes. Interoperability refers to multiple computer systems that are
connected in a manner that allows them to exchange information. These features are disabled
by default but can be enabled by Customer request. Customers may also use “connectors” to
connect Docusign eSignature Government Products to other systems to exchange information.
For example, a Docusign/Salesforce Connector can be used to connect Docusign eSignature
Government Products to a Salesforce product so that information may be exchanged between
the two connected systems.
If Customer chooses to connect Docusign eSignature Government Products to any other
Docusign product or to any third-party products or services, Customer authorizes Docusign to
export Customer Data outside of Docusign’s FedRAMP Moderate authorized boundary for the
processing and use of Customer Data by Customer, Docusign, and/or such third parties (as
applicable). For clarity, where Customers connect Docusign eSignature Government Products
with any other products or services (including but not limited to by use of Payments,
Comments, Connector or Agreement Action functionality), Docusign disclaims all liability for
FedRAMP control compliance or Customer's obligations relating to Customer Data exported
from Docusign’s FedRAMP Moderate authorized boundary.
If Customer is provisioned a demo or sandbox account (a “Sandbox Account”) Customer’s use
of that Sandbox Account is conditioned on the following: Customer acknowledges and is
aware that the Sandbox Account is a demo account and may or may not be within the
applicable FedRAMP environment. Customer will not input Controlled Information, Covered
Defense Information, Personally Identifiable Information, or any other sensitive or confidential
information in the Sandbox Account during the Term
CONFIDENTIAL
PAGE 2 of 3
QUOTE DATE:04/21/2026
QUOTE NO:64483653
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Attachment A - Carahsoft -
Docusign - Quote No.
64483653
Item 6: Staff Report Pg. 5 Packet Pg. 89 of 441
Government - Price Quotation
Docusign Government at Carahsoft
11493 Sunset Hills Road | Suite 100 | Reston, Virginia 20190
Phone (703) 871-8500 | Fax (703) 871-8505 | Toll Free (888) 662-2724
www.carahsoft.com | sales@carahsoft.com
Customer must reference Quote number on Purchase Order.
Should Customer purchase via Reseller all terms of Carahsoft Quote must be incorporated in Reseller quote and Customer Purchase Order to Reseller.
Any increase in subscription and support pricing will be in accordance with DocuSign's pricing and policies in effect at the time of the renewal or as otherwise agreed to by the
parties.
Licensee agrees that any order for DocuSign will be governed by the terms and conditions of the Carahsoft Docusign Service Agreement copies of which are found at
https://static.carahsoft.com/concrete/files/2616/5962/5258/DocuSign_Master_Services_Agreement_fo_Public_Sector.pdf and all Schedules and Documentation referenced
by the Terms are made a part hereof. The parties agree that any term or condition stated in a Customer purchase order or in any other Customer order documentation
(excluding Quotes) is void. In the event of any conflict or inconsistency among the following documents, the order of precedence shall be: (1) the applicable Quotes (and their
Contract Vehicle), (2) the TOU, and (3) the Documentation. Licensee acknowledges it has had the opportunity to review the Terms, prior to executing an order.
Should the customer purchase any version of DocuSign's IL-4 licensing the below terms will apply.
Reference the Memorandum previously provided to DISA Authorizing Official (dated October 22, 2023) detailing the Provisional Authorization (PA) granted by DISA, exceptions
to/exclusions from the PA, and conditions DocuSign is required to meet in order to maintain the PA for U.S. Department of Defense Impact Level 4 (DoD/IL-4). Customer
agrees:
- not to use DocuSign DoD/IL-4 in production without a BCAP connection (or DISA approval);
- not to process, store or transmit IL-4 production data without a BCAP connection to NIPRnet; o not to use DocuSign DoD/IL-4 to connect to any DocuSign services or
applications via an unauthorized endpoint outside of the NIPRnet or non-BCAP connections;
- Customer is responsible for any Customer Data sent to third party applications (regardless of whether such third-party applications are IL-4 certified);
Enterprise Premier Support for IL-4 customers is available from 9:00am - 8:30pm Eastern Standard Time.
CONFIDENTIAL
PAGE 3 of 3
QUOTE DATE:04/21/2026
QUOTE NO:64483653
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64483653
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CITY COUNCIL
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: June 1, 2026
Report #: 2605-6333
TITLE
Approval of an Extension to Building Permit 18000-00536 for 429 University Ave; CEQA status –
Mitigated Negative Declaration (ENV20718).
RECOMMENDATION
Staff recommends the City Council approve an extension to building permit 18000-00536 for a
term of three months, with additional three-month extensions not to exceed a total of 18
months to March 31, 2027.
BACKGROUND
In March 2017, Bellomo Architects on behalf of Kipling Post LP received the City’s approval to
demolish two one-story commercial structures at 425 and 429 University Ave and construct a
four-story mixed-use building. Demolition was completed in July 2019, and construction permit
18000-00526 was issued for the new building, comprising of two levels of below-grade parking
(18,124 sq ft), commercial space (18,305 sq ft), and three residential units (6,740 sq ft).
The Chief Building Official authorized three 180-day extensions (September 2022, May 2023,
January 2024) per Palo Alto Municipal Code 16.04.130, and 141 inspections were completed
between 2019 and 2023. In May 2023, the property owner requested a transfer to an owner-
builder permit and disclosed to the City a dispute and litigation case with the contractor firm. In
June 2024, Council approved further extensions to the property owner, with conditions on the
property remaining compliant with City code1. These conditions included planting trees on
Kipling Street, removing caution tape and cones surrounding the building.
Based on Palo Alto Municipal Code Section 16.04.130, the code provides that “the Chief
Building Official is authorized to grant no more than three extensions and reactivations of
1 June 16, 2024, City Council staff report agenda item 21 is available online at:
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permits, for periods of no more than 180 days each and may require that construction
documents be revised to partially or fully to comply with current codes and ordinances; and
payment of fees. Extensions and reactivations shall be requested in writing and justifiable cause
demonstrated. Additional extensions or reactivations beyond three may only be granted with
the approval of the City Council.” Additionally, Palo Alto Municipal Code 16.04.130 creates
California Building Code (CBC) section 105.5.1 which establishes a term limit for permits in that
“all work associated with a building permit must be completed and a final inspection issued
within 48 months of permit issuance. Once that term limit is exhausted without an approved
final inspection, the permit automatically becomes void.” As such, the owner has exhausted all
administrative extensions, requiring Council approval for any further extensions
ANALYSIS
FISCAL/RESOURCE IMPACT
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STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: June 1, 2026
Report #:2605-6354
TITLE
Approval of Professional Services Contracts with Concourse Tech Inc., Contract No. C26195689,
and Prospect Silicon Valley, Contract No. C26195690, to Support Commercial Efficiency and
Electrification Programs for a Term of Three (3) Years for a Total Combined Not to Exceed
Amount of $898,500; CEQA Status – Not a Project.
RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or their designee
to:
1. Execute Contract No. C26195689 with Concourse Tech Inc. for a not-to-exceed amount of
$148,500 over a three-year contract term ending June 4, 2029______ to develop a
Commercial Customer Characterization Tool and engagement platform for large
commercial and industrial customers as well as small and medium businesses;
2. Extend Contract No C26195689 with Concourse Tech Inc. for up to two (2) additional 12-
month periods with an annual not-to-exceed of $15,000 over the contract extension
period, subject to mutual agreement and available budget appropriations, for a total
contract amount not to exceed $178,500 over a five-year term ending June 4,
2031_______;
3. Execute Contract No. C26195690 with Prospect Silicon Valley (Prospect SV) for a not-to-
exceed amount of $750,000 over a three-year contract term ending May 3,
2029_______ to provide Technical Assistance and Equipment Option Analysis to support
electrification in commercial buildings; and
4. Extend Contract No C26195690 with Prospect SV Inc. for up to two (2) additional 12-
month periods with no additional cost to the City, subject to mutual agreement for a
total contract amount not to exceed $750,000 over a five-year term ending May 3,
2031______.
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EXECUTIVE SUMMARY
BACKGROUND
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In August 2025, CPAU issued three related RFPs for professional services to enhance the City’s
commercial efficiency and electrification program offerings:
ANALYSIS
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The Category 3 contract with Prospect SV will provide technical assistance and equipment
option analysis to support electrification of space heating and cooling, water heating and
commercial cooking equipment in commercial buildings. These services will help customers
evaluate replacement options, assess project feasibility, including assessing existing panel
capacity and space requirements of proposed electric equipment option(s), estimate cost
ranges of implementing feasible efficiency measures, and make informed decisions that align
with both operational needs and climate goals.
Solicitation Process
The City issued separate Requests for Proposals (RFPs) on August 14, 2025, for Category 2 and
Category 3 services. Through a competitive RFP process, staff selected Concourse Tech Inc. as
the vendor that best meets the City’s needs for Category 2. Through a similar RFP process, staff
selected Prospect SV as the vendor that best meets the City’s needs for Category 3.
Concourse Tech Inc. offers configurable cloud-based software solutions, specifically designed
for the public sector, that can support CPAU’s needs to characterize its commercial utility
customers and their energy use. Their platform provides flexibility to customize workflows, data
collection, and reporting, enabling CPAU to characterize and identify commercial customers
that would benefit from commercial electrification technical assistance and rebate offerings.
Concourse’s demonstrated experience, technical capabilities, and adaptable software tools
position them to successfully deliver the final products and services required for Category 2.
Prospect SV maintains local staff with extensive experience in building electrification,
equipment option analyses, permitting support, and project management for commercial and
multifamily electrification projects throughout the Bay Area. As part of its proposal, Prospect SV
has partnered with engineering firms and consultants with expertise in complex mechanical,
electrical and plumbing system designs, building energy modeling, electric load calculations,
and load management strategies. Its local presence and electrification expertise position
Prospect SV well to meet the electrification needs of CPAU’s commercial customers.
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Table 1: Summary of details related to RFP #195689 and RFP # 195690
Category 2 Request for Proposal # 195689
https://procurement.opengov.com/portal/palo-
alto-ca/projects/191814
Category 3 Request for Proposal # 195690
https://procurement.opengov.com/portal/palo-
alto-ca/projects/191820
Staff has added an Additional Services budget of
$13,500 for the purchase of external data sources to the contract, resulting in a total not-to-
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exceed three-year budget of $148,500 for the contract with Concourse Tech Inc. The two-year
extension option will add an annual not-to-exceed amount of $15,000 to cover the annual
maintenance and support. Staff will consider exercising the contract extension option if the tool
developed by Concourse Tech Inc. performs reliably, meets expectations for effective customer
targeting, and there continues to be a demonstrated need for staff use of the tool, with no
comparable alternative tool available at that time.
FISCAL/RESOURCE IMPACT
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projects, which aligns with Council’s Cap and Invest policy to promote investment in energy
efficiency programs for the natural gas portfolio and retail customers.
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
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administrative government activities will not result in any direct or indirect physical change to
the environment (CEQA Guidelines section 15378(b)(5)).
POLICY IMPACTS
ATTACHMENTS
APPROVED BY:
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CITY OF PALO ALTO CONTRACT NO. C26195689
AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF PALO ALTO AND COQUINA LABS INC. dba
CONCOURSE TECH INC.
This Agreement for Professional Services (this “Agreement”) is entered into as of the 4th day
of June, 2026 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California
chartered municipal corporation (“CITY”), and COQUINA LABS INC. dba CONCOURSE
TECH INC., a corporation, located at 169 Madison Ave., Suite 15520, New York, NY 10016
(“CONSULTANT”).
The following recitals are a substantive portion of this Agreement and are fully incorporated herein
by this reference:
RECITALS
A.CITY intends to create a customer characterization tool for staff to use for the commercial
energy efficiency and electrification program (the “Project”) and desires to engage a consultant to
provide a cloud-based customer characterization tool for customer identification, outreach,
engagement, and project management in connection with the Project (the “Services”, as detailed
more fully in Exhibit A).
B.CONSULTANT represents that it, its employees and subconsultants, if any, possess the
necessary professional expertise, qualifications, and capability, and all required licenses and/or
certifications to provide the Services.
C.CITY, in reliance on these representations, desires to engage CONSULTANT to provide
the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this
Agreement, the parties agree as follows:
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall provide CITY with access to its
proprietary cloud-based Customer Characterization Tool software-as-a-service platform and shall
perform the related implementation and other Services described in Exhibit A in accordance with
the terms and conditions contained in this Agreement. During the Term, CONSULTANT grants
CITY a limited, non-exclusive right to access and use such platform solely for CITY’s internal
business purposes in connection with the Project. The performance of all Services shall be to the
reasonable satisfaction of CITY. CONSULTANT shall use commercially reasonable efforts to
make the proprietary cloud-based Customer Characterization Tool software-as-a-service platform
available at least 99.5% of the time in each calendar month, excluding scheduled maintenance (for
which CONSULTANT shall provide at least forty-eight (48) hours’ prior notice to CITY, and
which shall be performed outside of normal business hours to the extent reasonably practicable)
and emergency maintenance or outages caused by factors outside of CONSULTANT’s reasonable
control.
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Optional On-Call Provision (This provision only applies if checked and only applies to
on-call agreements.)
CITY may elect to, but is not required to, authorize on-call Services up to the maximum
compensation amount set forth in Section 4 (Not to Exceed Compensation).
CONSULTANT shall provide on-call Services only by advanced, written authorization
from CITY as detailed in this Section. On-call Services, if any, shall be authorized by
CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager,
as identified in Section 13 (Project Management). Each Task Order shall be in substantially
the same form as Exhibit A-1 entitled “PROFESSIONAL SERVICES TASK ORDER”.
Each Task Order shall contain a specific scope of services, schedule of performance and
maximum compensation amount, in accordance with the provisions of this Agreement.
Compensation for on-call Services shall be specified by CITY in the Task Order, based on
whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set
forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s
Project Manager within the time specified by the Project Manager, and upon authorization
by CITY (defined as counter-signature by the CITY Project Manager), the fully executed
Task Order shall become part of this Agreement. The cumulative total compensation due
to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the
amount of compensation set forth in Section 4. CONSULTANT shall only be compensated
for on-call Services performed under an authorized Task Order and only up to the
maximum compensation amount set forth in Section 4. Performance of and payment for
any on-call Services are subject to all requirements and restrictions in this Agreement.
SECTION 2. TERM.
The term of this Agreement shall be from the Effective Date of this agreement through June 4,
2029, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance
of Services under this Agreement. CONSULTANT shall complete the Services within the term of
this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE
OF PERFORMANCE”. Any Services for which times for performance are not specified in this
Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and
timely manner based upon the circumstances and direction communicated to the CONSULTANT.
CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery
of damages for delay if the extension is required due to the fault of CONSULTANT.
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 One Hundred Thirty-
Five Thousand Dollars ($135,000). 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.
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Optional Additional Services Provision (This provision applies only if checked and a
not-to-exceed compensation amount for Additional Services is allocated below under this
Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not-
to-exceed compensation amount of Thirteen Thousand Five Hundred Dollars ($13,500)
for the performance of Additional Services (as defined below). The total compensation for
performance of the Services, Additional Services and any reimbursable expenses specified
in Exhibit C, shall not exceed One Hundred Forty-Eight Thousand Five Hundred
Dollars ($148,500), as detailed in Exhibit C.
“Additional Services” means any work that is determined by CITY to be necessary for the
proper completion of the Project, but which is not included within the Scope of Services
described at Exhibit A. CITY may elect to, but is not required to, authorize Additional
Services up to the maximum amount of compensation set forth for Additional Services in
this Section 4. CONSULTANT shall provide Additional Services only by advanced,
written authorization from CITY as detailed in this Section. Additional Services, if any,
shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project
Manager, as identified in Section 13 (Project Management). Each Task Order shall be in
substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK
ORDER”. Each Task Order shall contain a specific scope of services, schedule of
performance and maximum compensation amount, in accordance with the provisions of
this Agreement. Compensation for Additional Services shall be specified by CITY in the
Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit
C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s
Project Manager within the time specified by the Project Manager, and upon authorization
by CITY (defined as counter-signature by the CITY Project Manager), the fully executed
Task Order shall become part of this Agreement. The cumulative total compensation to
CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the
amount of compensation set forth for Additional Services in this Section 4.
CONSULTANT shall only be compensated for Additional Services performed under an
authorized Task Order and only up to the maximum amount of compensation set forth for
Additional Services in this Section 4. Performance of and payment for any Additional
Services are subject to all requirements and restrictions in this Agreement.
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly
invoices to the CITY describing the Services performed and the applicable charges (including, if
applicable, an identification of personnel who performed the Services, hours worked, hourly rates,
and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule
of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of
completion of each task. The information in CONSULTANT’s invoices shall be subject to
verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the
address specified in Section 13 (Project Management) below. CITY will generally process and
pay invoices within thirty (30) days of receipt of an acceptable invoice.
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SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed
by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it,
its employees and subcontractors, if any, possess the professional and technical personnel
necessary to perform the Services required by this Agreement and that the personnel have
sufficient skill and experience to perform the Services assigned to them. CONSULTANT
represents that it, its employees and subcontractors, if any, have and shall maintain during the term
of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature
that are legally required to perform the Services. All Services to be furnished by CONSULTANT
under this Agreement shall meet the professional standard and quality that prevail among
professionals in the same discipline and of similar knowledge and skill engaged in related work
throughout California under the same or similar circumstances.
SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of
and in compliance with all federal, state and local laws, ordinances, regulations, and orders that
may affect in any manner the Project or the performance of the Services or those engaged to
perform Services under this Agreement, as amended from time to time. CONSULTANT shall
procure all permits and licenses, pay all charges and fees, and give all notices required by law in
the performance of the Services.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for reasonable
direct costs, including, but not limited to, increases in the cost of Services, arising from or caused
by CONSULTANT’s material errors and omissions, including, but not limited to, the costs of
correcting such errors and omissions or any change order markup costs; provided, however, that
CONSULTANT’s obligation with respect to such material errors and omissions shall be limited,
at CITY’s option, to (i) re-performance of the deficient Services, or (ii) refund of fees paid for the
deficient Services in lieu of such re-performance. CONSULTANT shall not be responsible or
liable for any consequential, incidental, special, exemplary, punitive or indirect damages, except
for reasonable direct costs arising from delay or failure to perform the Services.
SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works
project, CONSULTANT shall submit estimates of probable construction costs at each phase of
design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s
stated construction budget by ten percent (10%) or more, CONSULTANT shall make
recommendations to CITY for aligning the Project design with the budget, incorporate CITY
approved recommendations, and revise the design to meet the Project budget, at no additional cost
to CITY.
SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees
that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be
deemed at all times to be an independent contractor and shall be wholly responsible for the manner
in which CONSULTANT performs the Services requested by CITY under this Agreement.
CONSULTANT and any agent or employee of CONSULTANT will not have employee status
with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY
pertaining to or in connection with any retirement, health or other benefits that CITY may offer its
employees. CONSULTANT will be responsible for all obligations and payments, whether
imposed by federal, state or local law, including, but not limited to, FICA, income tax
withholdings, workers’ compensation, unemployment compensation, insurance, and other similar
responsibilities related to CONSULTANT’s performance of the Services, or any agent or
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employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as
creating an employment or agency relationship between CITY and CONSULTANT or any agent
or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY
shall be construed as providing for direction as to policy and the result of CONSULTANT’s
provision of the Services only, and not as to the means by which such a result is obtained.
SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of
CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign
or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s
obligations hereunder without the prior written approval of the City Manager. Any purported
assignment made without the prior written approval of the City Manager will be void and without
effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement
will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the
parties.
SECTION 12. SUBCONTRACTING.
Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the
Services to be performed under this Agreement without the prior written authorization of the City
Manager or designee. In the event CONSULTANT does subcontract any portion of the work to
be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and
omissions of subcontractors.
Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY
agrees that subcontractors may be used to complete the Services. The subcontractors authorized
by CITY to perform work on this Project are:
CONSULTANT shall be responsible for directing the work of any subcontractors and for any
compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning
compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts
and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with
the prior written approval of the City Manager or designee.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Thomas Smyth as
the CONSULTANT’s Project Manager to have supervisory responsibility for the performance,
progress, and execution of the Services and represent CONSULTANT during the day-to-day
performance of the Services. If circumstances cause the substitution of the CONSULTANT’s
Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment
of a substitute Project Manager and the assignment of any key new or replacement personnel will
be subject to the prior written approval of the CITY’s Project Manager. CITY's approval of any
substitute Project Manager or key personnel shall not be unreasonably withheld, conditioned, or
delayed. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel
who CITY finds materially fail to perform the Services in accordance with this Agreement or
engage in documented misconduct. CITY's right to remove CONSULTANT personnel shall be
limited to situations involving material failure to perform the Services in accordance with this
Agreement or documented misconduct.
CITY’s Project Manager is Shelby Sinkler, Utilities Department, 250 Hamilton Ave., Palo Alto,
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CA, 94301, Telephone: 650-329-2525, Email: Shelby.Sinkler@paloalto.gov. CITY’s Project
Manager will be CONSULTANT’s point of contact with respect to performance, progress and
execution of the Services. CITY may designate an alternate Project Manager from time to time.
SECTION 14. OWNERSHIP OF MATERIALS. “City Data” means all data, information, and
materials provided by CITY to CONSULTANT, or generated, collected, or derived from such data
by CONSULTANT in connection with the Services. All work product, including without
limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications,
computations, models, recordings, data, documents, and other materials and copyright interests
developed under this Agreement, in any form or media, that are specifically created for CITY and
delivered to CITY as part of the Services (the “Deliverables”), including configurations and
customizations specific to CITY and CITY Data and compilations thereof, shall be and remain the
exclusive property of CITY without restriction or limitation upon their use. CONSULTANT
agrees that all copyrights which arise from creation of the Deliverables pursuant to this Agreement
are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright
or other intellectual property rights in favor of CITY with respect to the Deliverables.
Notwithstanding the foregoing, CONSULTANT retains all right, title and interest in and to its pre-
existing software, SaaS platform, and other proprietary tools, materials and technology, and any
general improvements or enhancements thereto. To the extent any such items are incorporated in
the Deliverables, CONSULTANT grants CITY a nonexclusive, perpetual, irrevocable, royalty-
free license to use them solely as necessary to use the Deliverables for CITY’s internal purposes.
Neither CONSULTANT nor its subcontractors, if any, shall make any of such Deliverables
available to any individual or organization without the prior written approval of the City Manager
or designee. CITY retains all right, title, and interest in and to all City Data, and CONSULTANT
may access and use City Data solely for purposes of performing the Services under this Agreement
and for no other purpose. CONSULTANT makes no representation of the suitability of the
Deliverables for use in or application to circumstances not contemplated by the Scope of Services.
SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized
representatives to audit, at any reasonable time during the term of this Agreement and for four (4)
years from the date of final payment, CONSULTANT’s records pertaining to matters covered by
this Agreement, including without limitation records demonstrating compliance with the
requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain
and retain accurate books and records in accordance with generally accepted accounting principles
for at least four (4) years after the expiration or earlier termination of this Agreement or the
completion of any audit hereunder, whichever is later.
SECTION 16. INDEMNITY.
16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify,
defend and hold harmless CITY, its Council members, officers, employees and agents (each an
“Indemnified Party”) from and against any and all third party demands, claims, or liability of any
nature, including death or injury to any person, property damage or any other loss, including all
costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and
disbursements (“Claims”) to the extent that such Claims arise out of, pertain to, or relate to the
negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents
or contractors under this Agreement, regardless of whether or not it is caused in part by an
Indemnified Party. CITY will reimburse CONSULTANT for the proportionate percentage of
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defense costs exceeding CONSULTANT’s proportionate percentage of fault as determined by the
final judgment of a court of competent jurisdiction.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to
require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active
negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of,
or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its
officers, employees, agents or contractors under this Agreement.
16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not
operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive
the expiration or early termination of this Agreement.
16.4 In addition to the foregoing, CONSULTANT shall indemnify, defend and
hold harmless CITY and its Indemnified Parties from and against any and all Claims by any third
party alleging infringement or misappropriation of any patent, copyright, trademark, trade secret,
or other intellectual property right arising out of the use of the Services or CONSULTANT’s
software, SaaS platform, or related technology by CITY in accordance with the terms of this
Agreement. NO LIMITATION OF LIABILITY SET FORTH ELSEWHERE IN THIS
AGREEMENT SHALL APPLY TO CONSULTANT’S OBLIGATIONS UNDER THIS
SECTION 16.4. CONSULTANT shall have the right to investigate, defend and settle any such
Claim. CONSULTANT shall have no liability for any Claim under this Section 16.4 to the extent
it is based on (a) CITY’s unauthorized modification of the Services or CONSULTANT’s
technology, or (b) CITY’s use of the Services in combination with products or services not
provided by CONSULTANT, where such Claim would not have arisen but for such modification
or combination.
SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under
this Agreement is effective unless it is in writing in accordance with Section 29.4 of this
Agreement. No delay or failure to require performance of any provision of this Agreement shall
constitute a waiver of that provision as to that or any other instance. Any waiver granted shall
apply solely to the specific instance expressly stated. No single or partial exercise of any right or
remedy will preclude any other or further exercise of any right or remedy.
SECTION 18. INSURANCE.
18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in
full force and effect during the term of this Agreement, the insurance coverage described in Exhibit
D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall
obtain a policy endorsement naming CITY as an additional insured under any general liability or
automobile policy or policies.
18.2. All insurance coverage required hereunder shall be provided through
carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or
authorized to transact insurance business in the State of California. Any and all contractors of
CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in
full force and effect during the term of this Agreement, identical insurance coverage, naming CITY
as an additional insured under such policies as required above.
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18.3. Certificates evidencing such insurance shall be filed with CITY
concurrently with the execution of this Agreement. The certificates will be subject to the approval
of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary
coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except
after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation
or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30)
days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written
notice of the cancellation or modification within two (2) business days of the CONSULTANT’s
receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates
evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term
of this Agreement.
18.4. The procuring of such required policy or policies of insurance will not be
construed to limit CONSULTANT’s liability hereunder nor to fulfill the indemnification
provisions of this Agreement. Notwithstanding the policy or policies of insurance,
CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss
caused by or directly arising as a result of the Services performed under this Agreement, including
such damage, injury, or loss arising after the Agreement is terminated or the term has expired.
SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The City Manager may suspend the performance of the Services, in whole
or in part, or terminate this Agreement, with or without cause, by giving thirty (30) days prior
written notice thereof to CONSULTANT. In the event of termination without cause, CITY shall
compensate CONSULTANT for all work performed through the termination date, including
reasonable, documented wind-down costs not to exceed ten (10) percent of the remaining contract
value. If CONSULTANT fails to perform any of its material obligations under this Agreement, in
addition to all other remedies provided under this Agreement or at law, the City Manager may
terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of
suspension or termination, CONSULTANT will discontinue its performance of the Services on
the effective date in the notice of suspension or termination.
19.2. In event of suspension or termination, CONSULTANT will deliver to the
City Manager on or before the effective date in the notice of suspension or termination, any and
all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed,
prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such
work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).
19.3. In event of suspension or termination, CONSULTANT will be paid for the
Services rendered and work products delivered to CITY in accordance with the Scope of Services
up to the effective date in the notice of suspension or termination; provided, however, if this
Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be
obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services
provided in material conformity with this Agreement as such determination is made by the City
Manager acting in the reasonable exercise of his/her discretion. The following Sections will
survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 19.5, 20,
25, 27, 28, 29 and 30.
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19.4. No payment, partial payment, acceptance, or partial acceptance by CITY
will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made
in accordance with Section 17 (Waivers).
19.5. Upon expiration or termination of this Agreement, CONSULTANT shall,
upon request, promptly and in no event later than ten (10) days, provide CITY with a complete
copy of all City Data in a commercially reasonable, machine-readable format, at no additional cost
to CITY. CITY shall have the option to specify a reasonable method for obtaining such City Data.
Such obligation shall apply to all City Data in the possession of CONSULTANT and its
subcontractors, if any. Upon written confirmation from CITY that the City Data has been
successfully transferred, CONSULTANT shall promptly delete or securely destroy such data from
its systems.
SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by
certified mail, addressed as follows:
To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
With a copy to the Purchasing Manager
To CONSULTANT: Attention of the Project Manager at the address of
CONSULTANT recited on the first page of this Agreement.
CONSULTANT shall provide written notice to CITY of any change of address.
SECTION 21. CONFLICT OF INTEREST.
21.1. In executing this Agreement, CONSULTANT covenants that it presently
has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which
would conflict in any manner or degree with the performance of the Services.
21.2. CONSULTANT further covenants that, in the performance of this
Agreement, it will not employ subcontractors or other persons or parties having such an interest.
CONSULTANT certifies that no person who has or will have any financial interest under this
Agreement is an officer or employee of CITY; this provision will be interpreted in accordance
with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the
State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any
conflict arises.
21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by
the Regulations of the Fair Political Practices Commission, CONSULTANT will file the
appropriate financial disclosure documents required by the Palo Alto Municipal Code and the
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Political Reform Act of 1974, as amended from time to time.
SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.
22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended
from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not
discriminate in the employment of any person due to that person’s race, skin color, gender, gender
identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic
information or condition, housing status, marital status, familial status, weight or height of such
person. CONSULTANT acknowledges that it has read and understands the provisions of Section
2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the
penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining
to nondiscrimination in employment.
22.2. CONSULTANT understands and agrees that pursuant to the Americans
Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to
the public, whether directly or through a contractor or subcontractor, are required to be accessible
to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a
manner that complies with the ADA and any other applicable federal, state and local disability
rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate
against persons with disabilities in the provision of services, benefits or activities provided under
this Agreement.
SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO
WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally
Preferred Purchasing policies which are available at CITY’s Purchasing Department, hereby
incorporated by reference and as amended from time to time. CONSULTANT shall comply with
waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero
Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and,
third, recycling or composting waste. In particular, CONSULTANT shall comply with the
following Zero Waste requirements:
(a) All printed materials provided by CONSULTANT to CITY generated from a
personal computer and printer including but not limited to, proposals, quotes, invoices, reports,
and public education materials, shall be double-sided and printed on a minimum of 30% or greater
post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any
submitted materials printed by a professional printing company shall be a minimum of 30% or
greater post-consumer material and printed with vegetable-based inks.
(b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in
accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended
Producer Responsibility requirements for products and packaging. A copy of this policy is on file
at the Purchasing Department’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no
additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from
the facility accepting the pallets to verify that pallets are not being disposed.
SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE.
CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62
(Citywide Minimum Wage), as amended from time to time. In particular, for any employee
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otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a
calendar week within the geographic boundaries of the City, CONSULTANT shall pay such
employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030
for each hour worked within the geographic boundaries of the City of Palo Alto. In addition,
CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in
accordance with Palo Alto Municipal Code Section 4.62.060.
SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of
the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to
time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the
event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal
year in the event that funds are only appropriated for a portion of the fiscal year and funds for this
Agreement are no longer available. This Section shall take precedence in the event of a conflict
with any other covenant, term, condition, or provision of this Agreement.
SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC
WORKS CONTRACTS.
26.1. This Project is not subject to prevailing wages and related
requirements. CONSULTANT is not required to pay prevailing wages and meet related
requirements under the California Labor Code and California Code of Regulations in the
performance and implementation of the Project if the contract:
(1) is not a public works contract;
(2) is for a public works construction project of $25,000 or less, per California
Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or
(3) is for a public works alteration, demolition, repair, or maintenance project of
$15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and
1773.3(j).
SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For
purposes of this Section 27, a “9204 Public Works Project” means the erection, construction,
alteration, repair, or improvement of any public structure, building, road, or other public
improvement of any kind. (Cal. Pub. Cont. Code § 9204.)
This Project is not a 9204 Public Works Project.
SECTION 28. CONFIDENTIAL INFORMATION.
28.1. In the performance of this Agreement, CONSULTANT may have access to
CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential
Information in strict confidence, not disclose it to any third party, and will use it only for the
performance of its obligations to CITY under this Agreement and for no other purpose.
CONSULTANT will maintain reasonable and appropriate administrative, technical and physical
safeguards to ensure the security, confidentiality and integrity of the Confidential Information.
Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its
employees, agents and subcontractors, if any, to the extent they have a need to know in order to
perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose,
provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality
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and security obligations of this Agreement.
28.2. “Confidential Information” means all data, information (including without
limitation “Personal Information” about a California resident as defined in Civil Code Section
1798 et seq., as amended from time to time) and materials, in any form or media, tangible or
intangible, provided or otherwise made available to CONSULTANT by CITY, directly or
indirectly, pursuant to this Agreement, including any City Data. Confidential Information excludes
information that CONSULTANT can show by appropriate documentation: (i) was publicly known
at the time it was provided or has subsequently become publicly known other than by a breach of
this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of
confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by
CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is
independently developed by employees of CONSULTANT without any use of or access to the
Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an
authorized representative of CITY.
28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential
Information to the extent required by order of a court of competent jurisdiction or governmental
body, provided that CONSULTANT will notify CITY in writing of such order immediately upon
receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing
so), to give CITY an opportunity to oppose or otherwise respond to such order.
28.4. CONSULTANT will notify CITY promptly upon learning of any breach in
the security of its systems or unauthorized disclosure of, or access to, Confidential Information in
its possession or control, and if such Confidential Information consists of Personal Information,
CONSULTANT will provide information to CITY sufficient to meet the notice requirements of
Civil Code Section 1798 et seq., as applicable, as amended from time to time.
28.5. Prior to or upon termination or expiration of this Agreement,
CONSULTANT will honor any request from the CITY to return or securely destroy all copies of
Confidential Information. All Confidential Information is and will remain the property of the CITY
and nothing contained in this Agreement grants or confers any rights to such Confidential
Information on CONSULTANT.
28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the
terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.
SECTION 29. MISCELLANEOUS PROVISIONS.
29.1. This Agreement will be governed by California law, without regard to its
conflict of law provisions.
29.2. In the event that an action is brought, the parties agree that trial of such
action will be vested exclusively in the state courts of California in the County of Santa Clara,
State of California.
29.3. The prevailing party in any action brought to enforce the provisions of this
Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that
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action. The prevailing party shall be entitled to recover an amount equal to the fair market value
of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third
parties.
29.4. This Agreement, including all exhibits, constitutes the entire and integrated
agreement between the parties with respect to the subject matter of this Agreement, and supersedes
all prior agreements, negotiations, representations, statements and undertakings, either oral or
written. This Agreement may be amended only by a written instrument, which is signed by the
authorized representatives of the parties and approved as required under Palo Alto Municipal
Code, as amended from time to time.
29.5. If a court of competent jurisdiction finds or rules that any provision of this
Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in
full force and effect.
29.6. In the event of a conflict between the terms of this Agreement and the
exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall
control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if
any), the exhibits shall control.
29.7. The provisions of all checked boxes in this Agreement shall apply to this
Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.
29.8. All section headings contained in this Agreement are for convenience and
reference only and are not intended to define or limit the scope of any provision of this Agreement.
29.9. This Agreement may be signed in multiple counterparts, which, when
executed by the authorized representatives of the parties, shall together constitute a single binding
agreement.
SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is
selected below, is hereby attached and incorporated into this Agreement by reference as though
fully set forth herein:
EXHIBIT A: SCOPE OF SERVICES
EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION
EXHIBIT C-1: SCHEDULE OF RATES
EXHIBIT D: INSURANCE REQUIREMENTS
EXHIBIT E: INFORMATION PRIVACY POLICY
EXHIBIT F: CYBERSECURITY TERMS AND CONDITIONS
THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS
ARE ATTACHED.
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CONTRACT NO. C26195689
SIGNATURE PAGE
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives
executed this Agreement as of the date first above written.
CITY OF PALO ALTO
____________________________
City Manager
APPROVED AS TO FORM:
__________________________
City Attorney or designee
COQUINA LABS INC. dba
CONCOURSE TECH INC.
Officer 1
By: ________________________________
Name: ______________________________
Title: _______________________________
Officer 2 (Required for Corp. or LLC)
By: ________________________________
Name: ______________________________
Title: _______________________________
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Thomas Smyth
CEO
Rapolas Binkys
Assistant Treasurer
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EXHIBIT A
SCOPE OF SERVICES
CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF
SERVICES”. Notwithstanding any provision herein to the contrary, CONSULTANT’s duties and
services described in this Scope of Services shall not include preparing or assisting CITY with any
portion of CITY’s preparation of a request for proposals, request for qualifications, or any other
solicitation regarding a subsequent or additional contract with CITY. CITY shall at all times retain
responsibility for public contracting, including with respect to any subsequent phase of this project.
CONSULTANT’s participation in the planning, discussions, or drawing of project plans or
specifications shall be limited to conceptual, preliminary, or initial plans or specifications.
CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on
any subsequent phase of this project have access to the same information, including all conceptual,
preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Scope
of Services.
Phase 1: Discovery and Requirements
Task 1.1 Project Kickoff
CONSULTANT will execute a project kickoff meeting which will include stakeholder interviews
with utilities staff and key account representatives to determine data sources needed for the tool.
CONSULTANT will include its Characterization results as .CSV outputs so that City of Palo Alto
Utilities (CPAU) can integrate these tables into its Customer Relationship Management (CRM)
tools and other future platforms. CONSULTANT will use commercially reasonable efforts to
integrate the platform with the CRM tool.
Task 1.1 Deliverables:
• Project Plans
• Requirements document
• Integration assessment report
Task 1.2 Data Inventory and Gap Analysis
CONSULTANT will collect data from the CITY and other resources to obtain the information
needed to build the Characterization Tool. All data will be open-source, delivered by the CITY, or
paid for by the CITY. CONSULTANT will not be expected to purchase any data for the analysis
tool. Exact data requirements will be discussed as part of the initial discovery phase.
CONSULTANT shall be responsible for identifying data requirements and notifying CITY of any
material data gaps or quality issues that may affect performance of the Services. The tool will
provide data including but not limited to commercial property inventory, utility usage, property
owner and tenant contact information, rooftop unit inventory, and property level Energy Use
Intensity (EUI) analysis. CONSULTANT will report the results and methodologies for the
Characterization Tool. Expected data collection needed to develop the tool includes, but is not
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limited to:
Inventory of Commercial Properties
• Commercial Property Aggregation: CONSULTANT will utilize multiple data sources such
as utility data, meter matching data, County data, commercial real estate data, satellite
imagery, GIS, and building footprint data. These sources are used to identify and aggregate
individual tax lot information into larger commercial complexes.
• Commercial Building Inventory: CONSULTANT will use remote sensing tools, such as
LiDAR, to identify individual buildings, rooftop equipment, and building data for each
property. Machine learning models are utilized to predict missing building attributes such
as number of stories, building vintage and other variables that are often missing at high
rates in the property databases.
• Best Contact Information Analytics: To improve CPAU’s ability to contact a
decisionmaker building site, CONSULTANT will utilize CoStar, county assessor, the Palo
Alto business registry, real estate data, business contact databases, such as Open
Corporates, and other sources to integrate contact information from its multiple sources to
identify the best commercial customer contact information.
• Commercial Property Level EUI: CONSULTANT will utilize monthly gas and electricity
consumption data from CPAU to calculate EUI (kBTU/sqft/year) at the property level
based on the property aggregation (total property sqft) and with aggregated kWh and therm
consumption for matched meters, kWh/sqft, and therms/sqft.
Identify Commercial Rooftop Packaged HVAC Units
• Commercial Rooftop Packaged HVAC Unit (RTU) Classification: CONSULTANT will
create a tool that uses high resolution ortho-imagery and supervised image classification
tools to identify rooftop units on each commercial building in CPAU territory.
• Commercial Energy Disaggregation Analytics: CONSULTANT will utilize building
energy modeling tools to identify cost-effective energy efficiency upgrades at commercial
properties through its load disaggregation algorithms that will identify different end-uses
including heating, cooling, and baseload kWh and therms. This analysis is what will
estimate RTU age through property heating and cooling efficiency as a proxy for age.
Task 1.2 Deliverables:
• Data inventory report
• Gap analysis of existing systems
Phase 2 System Design and Development
Task 2 System architecture design and technical specifications
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CONSULTANT will deploy a secure online data application for CPAU that allows program staff,
program administrators, and analysts at CPAU to access the results. CONSULTANT will develop
advanced mapping and visualization tools that can be customized according to CPAU’s needs.
This task includes, but is not limited to:
• Backend development with database and API creation
• Frontend development with responsive user interface
• GIS integration and data processing modules
• Customer segmentation algorithms and analytics
• Integrated testing throughout development process
CONSULTANT will ensure that all the project data will be stored on hyper-secure Amazon Web
Service (AWS), easily accessible by staff, which integrates the latest cyber-security tools and
standards for software as a service (SaaS) platform. The Characterization dashboard is available
as an Application Programming Interface (API) that will enable CPAU to integrate its functions
into existing technological tools.
Task 2 Deliverables:
• System architecture
• Working prototype
• Integration modules
Phase 3 Testing and Quality Assurance
Task 3.1 Internal Testing
CONSULTANT shall conduct functional testing of all system components, which includes
performance testing, optimization, security testing and vulnerability assessment. CONSULTANT
will also conduct integration testing with existing CPAU systems.
Task 3.1 Deliverables:
• Test results
• Performance metrics
• Security assessment results
Task 3.2 User Acceptance Testing with CPAU
CONSULTANT will plan, organize, and facilitate User Acceptance Testing (UAT) in coordination
with CPAU staff to validate that the tool meets business and operational requirements. This
includes developing a clear UAT plan, defining test scenarios and success criteria, scheduling
testing sessions, and providing guidance to staff throughout the process. The consultant will
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document feedback, track issues to resolution, and confirm final sign-off to ensure the system is
ready for deployment.
Task 3.2 Deliverables:
• UAT summary report
Phase 4 Training and Deployment
Task 4.1 CPAU Staff Training
CONSULTANT shall develop clear, user-friendly user manuals for both system administrators
and end users. CONSULTANT will ensure all documentation reflects finalized tool functionality
and incorporates feedback from UAT. CONSULTANT is to provide documentation in editable
and accessible formats for future updates and internal use.
CONSULTANT is to provide end-user training focused on core functionality, workflows, and best
practices aligned with day-to-day operations. CONSULTANT will deliver training sessions in
accessible formats (e.g., virtual sessions and recorded materials) to accommodate staff availability.
Task 4.1 Deliverables:
• User training manuals
• User training recordings
Task 4.2 Project Handoff
CONSULTANT will provide CITY with a login to the tool to access commercial customer
information and energy data. The tool will allow CITY to export and use the data for program
design, customer identification, outreach, and high-level energy analysis. CONSULTANT will
support a structured transition from implementation to operational ownership, ensuring the system
is fully deployed, validated, and supported by staff. This includes, but is not limited to:
• Production system deployment
• Data migration and system configuration
• Go-live support and initial user assistance
• Final system validation and acceptance
• Support procedures and escalation setup
Task 4.2 Deliverables:
• Production system
• Procedures document
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EXHIBIT A-1
PROFESSIONAL SERVICES TASK ORDER
CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions
of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this
Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical
and supporting personnel required by this Task Order as described below.
CONTRACT NO.
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.:
2. CONSULTANT NAME:
3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________
I hereby authorize the performance of the
work described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: ______________________
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
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EXHIBIT B
SCHEDULE OF PERFORMANCE
CONSULTANT shall perform the Services so as to complete each milestone within the number
of days/weeks specified below. The time to complete each milestone may be increased or
decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so
long as all work is completed within the term of the Agreement. CONSULTANT shall provide a
detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the
notice to proceed (“NTP”) from the CITY.
Milestones Number of Days/Weeks (as specified below)
Task 1 Discovery and Requirements Weeks 1-2
Task 2 System Design and Development Weeks 3-8
Task 3 Testing and Quality Assurance Week 9
Task 4 Training and Deployment Week 10
User Licenses Ongoing, during Term
Maintenance and Support Ongoing, during Term
Optional Schedule of Performance Provision for On-Call or Additional Services Agreements.
(This provision only applies if checked and only applies to on-call agreements per Section 1 or
agreements with Additional Services per Section 4.)
The schedule of performance shall be as provided in the approved Task Order, as detailed in
Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case
of Additional Services, provided in all cases that the schedule of performance shall fall within the
term as provided in Section 2 (Term) of this Agreement.
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EXHIBIT C
COMPENSATION
CITY agrees to compensate CONSULTANT for 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 rate schedule attached as Exhibit C-1 up to the not to exceed
budget amount for each task set forth below.
CITY’s Project Manager may approve in writing the transfer of budget amounts between any of
the tasks or categories listed below, provided that the total compensation for the Services,
including any specified reimbursable expenses, and the total compensation for Additional Services
(if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this
Agreement.
CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and
Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or
expenses incurred for which payment would result in a total exceeding the maximum amount of
compensation set forth in this Agreement shall be at no cost to the CITY.
BUDGET SCHEDULE
TASK NOT TO EXCEED AMOUNT
135,000.00
0
Total for Services and Reimbursable Expenses $135,000.00
Maximum Total Compensation $148,500.00
Fees for user licenses, maintenance, and support shall be prorated to the effective date of
termination or expiration of the Agreement.
REIMBURSABLE EXPENSES
CONSULTANT’S ordinary business expenses, such as administrative, overhead,
administrative support time/overtime, information systems, software and hardware,
photocopying, telecommunications (telephone, internet), in-house printing, insurance and
other ordinary business expenses, are included within the scope of payment for Services and
are not reimbursable expenses hereunder.
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Reimbursable expenses, if any are specified as reimbursable under this section, will be
reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will
be reimbursed are: NONE up to the not-to-exceed amount of: $0.00.
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EXHIBIT C-1
SCHEDULE OF RATES
CONSULTANT’s schedule of rates is as follows:
Table 2 – Commercial Customer Characterization Tool
Task Deliverable Assumptions/Not
120 $150 $18,000 Comprehensive i t 2.1
&
Requirement
s
gathering with all stakeholders
Requirements
Category 2: Documentation
2.1 Subtotal Customer Architecture Characterizat
ion
2.2 System Design and Backend Identification, Frontend Outreach, GIS/Data Engagement,
2.2 Subtotal Project 2.3 Testing Testing
Management 2.3 Subtotal 2.4 Training
&
Staff Training 60 $150 $9,000 Complete User
Manual/Docume System Launch
2.4 Subtotal 2.5 User
Licenses 20 $150 $6,000 Annual licensing for unlimited
Other
2.5 Subtotal
($)
2.6
Maintenance
& Support
0 N/A $24,000 Annual support and
fee Updates
2.6 Subtotal ($)
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EXHIBIT D
INSURANCE REQUIREMENTS
CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE
CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW,
AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR
AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH
OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY
STATUTORY
STATUTORY STATUTORY STATUTORY
YES
GENERAL LIABILITY, INCLUDING
PERSONAL INJURY, BROAD FORM
PROPERTY DAMAGE BLANKET
CONTRACTUAL, AND FIRE LEGAL
LIABILITY
BODILY INJURY
PROPERTY DAMAGE
BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
YES
AUTOMOBILE LIABILITY,
INCLUDING ALL OWNED, HIRED,
NON-OWNED
BODILY INJURY
- EACH PERSON
- EACH OCCURRENCE
PROPERTY DAMAGE
BODILY INJURY AND PROPERTY
DAMAGE, COMBINED
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
YES
PROFESSIONAL LIABILITY,
INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE (WHEN
APPLICABLE), AND NEGLIGENT
PERFORMANCE
ALL DAMAGES $1,000,000
YES
THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST
AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM
OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY
CONSULTANT
COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL
INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE:
A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR
CONSULTANT’S AGREEMENT TO INDEMNIFY CITY.
II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED
COVERAGE AT THE FOLLOWING EMAIL: PurchasingSupport@PaloAlto.Gov
III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL
INSUREDS:
A. PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,
INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR
CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE
ADDITIONAL INSUREDS.
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B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER
THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE
INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE
INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS
POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON
OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE
CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE
OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT
OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY
WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE
FILED WITH THE CITY OF PALO ALTO SENT TO THE FOLLOWING EMAIL:
Purchasingsupport@PaloAlto.Gov
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POLICY AND PROCEDURES 1‐64/IT
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EXHIBIT “E” INFORMATION PRIVACY POLICY
POLICY STATEMENT
The City of Palo Alto (the “City”) strives to promote and sustain a superior quality of life for
persons in Palo Alto. In promoting the quality of life of these persons, it is the policy of the City,
consistent with the provisions of the California Public Records Act, California Government Code
§§ 6250 – 6270, to take appropriate measures to safeguard the security and privacy of the
personal (including, without limitation, financial) information of persons, collected in the
ordinary course and scope of conducting the City’s business as a local government agency.
These measures are generally observed by federal, state and local authorities and reflected in
federal and California laws, the City’s rules and regulations, and industry best practices,
including, without limitation, the provisions of California Civil Code §§ 1798.3(a), 1798.24,
1798.79.8(b), 1798.80(e), 1798.81.5, 1798.82(e), 1798.83(e)(7), and 1798.92(c). Though some
of these provisions do not apply to local government agencies like the City, the City will conduct
business in a manner which promotes the privacy of personal information, as reflected in
federal and California laws. The objective of this Policy is to describe the City’s data security
goals and objectives, to ensure the ongoing protection of the Personal Information, Personally
Identifiable Information, Protected Critical Infrastructure Information and Personally Identifying
Information of persons doing business wit the City and receiving services from the City or a
third party under contract to the City to provide services. The terms “Personal Information,”
“Protected Critical Infrastructure Information”, “Personally Identifiable Information” and
“Personally Identifying Information” (collectively, the “Information”) are defined in the
California Civil Code sections,
reference.
referred to above, and are incorporated in this Policy by
PURPOSE
The City, acting in its governmental and proprietary capacities, collects the Information
pertaining to persons who do business with or receive services from the City. The Information is
collected by a variety of means, including, without limitation, from persons applying to receive
services provided by the City, persons accessing the City’s website, and persons who access
other information portals maintained by the City’s staff and/or authorized third‐party
contractors. The City is committed to protecting the privacy and security of the Information
collected by the City. The City acknowledges federal and California laws, policies, rules,
regulations and procedures, and industry best practices are dedicated to ensuring the
Information is collected, stored and utilized in compliance with applicable laws.
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The goals and objectives of the Policy are: (a) a safe, productive, and inoffensive work
environment for all users having access to the City’s applications and databases; (b) the
appropriate maintenance and security of database information assets owned by, or entrusted
to, the City; (c) the controlled access and security of the Information provided to the City’s staff
and third party contractors; and (d) faithful compliance with legal and regulatory requirements.
SCOPE
The Policy will guide the City’s staff and, indirectly, third party contractors, which are by
contract required to protect the confidentiality and privacy of the Information of the persons
whose personal information data are intended to be covered by the Policy and which will be
advised by City staff to conform their performances to the Policy should they enjoy conditional
access to that information.
CONSEQUENCES
The City’s employees shall comply with the Policy in the execution of their official duties to the
extent their work implicates access to the Information referred to in this Policy. A failure to
comply may result in employment and/or legal consequences.
EXCEPTIONS
In the event that a City employee cannot fully comply with one or more element(s) described in
this Policy, the employee may request an exception by submitting Security Exception Request.
The exception request will be reviewed and administered by the City’s Information Security
Manager (the “ISM”). The employee, with the approval of his or her supervisor, will provide
any additional information as may be requested by the ISM. The ISM will conduct a risk
assessment of the requested exception in accordance with guidelines approved by the City’s
Chief Information Officer (“CIO”) and approved as to form by the City Attorney. The Policy’s
guidelines will include at a minimum: purpose, source, collection, storage, access, retention,
usage, and protection of the Information identified in the request. The ISM will consult with the
CIO to approve or deny the exception request. After due consideration is given to the request,
the exception request disposition will be communicated, in writing, to the City employee and
his or her supervisor. The approval of any request may be subject to countermeasures
established by the CIO, acting by the ISM.
MUNICIPAL ORDINANCE
This Policy will supersede any City policy, rule, regulation or procedure regarding information
privacy.
RESPONSIBILITIES OF CITY STAFF
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A.RESPONSIBILITY OF CIO AND ISM
The CIO, acting by the ISM, will establish an information security management framework
to initiate and coordinate the implementation of information security measures by the
City’s government.
The City’s employees, in particular, software application users and database users, and,
indirectly, third party contractors under contract to the City to provide services, shall by
guided by this Policy in the performance of their job responsibilities.
The ISM will be responsible for: (a) developing and updating the Policy, (b) enforcing
compliance with and the effectiveness of the Policy; (c) the development of privacy
standards that will manifest the Policy in detailed, auditable technical requirements, which
will be designed and maintained by the persons responsible for the City’s IT environments;
(d) assisting the City’s staff in evaluating security and privacy incidents that arise in regard
to potential violations of the Policy; (e) reviewing and approving department‐specific
policies and procedures which fall under the purview of this Policy; and (f) reviewing Non‐
Disclosure Agreements (NDAs) signed by third party contractors, which will provide services,
including, without limitation, local or ‘cloud‐based’ software services to the City.
B.RESPONSIBILITY OF INFORMATION SECURITY STEERING COMMITTEE
The Information Security Steering Committee (the “ISSC”), which is comprised of the City’s
employees, drawn from the various City departments, will provide the primary direction,
prioritization and approval for all information security efforts, including key information
security and privacy risks, programs, initiatives and activities. The ISSC will provide input to
the information security and privacy strategic planning processes to ensure that information
security risks are adequately considered, assessed and addressed at the appropriate City
department level.
C.RESPONSIBILITY OF USERS
All authorized users of the Information will be responsible for complying with information
privacy processes and technologies within the scope of responsibility of each user.
D.RESPONSIBILITY OF INFORMATION TECHNOLOGY (IT) MANAGERS
The City’s IT Managers, who are responsible for internal, external, direct and indirect
connections to the City’s networks, will be responsible for configuring, maintaining and
securing the City’s IT networks in compliance with the City’s information security and
privacy policies. They are also responsible for timely internal reporting of events that may
have compromised network, system or data security.
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E.RESPONSIBILITY OF AUTHORIZATION COORDINATION
The ISM will ensure that the City’s employees secure the execution of Non‐Disclosure
Agreements (NDA), whenever access to the Information will be granted to third party
contractors, in conjunction with the Software as a Service (SaaS) Security and Privacy Terms
and Conditions. An NDA must be executed prior to the sharing of the Information of
persons covered by this Policy with third party contractors. The City’s approach to managing
information security and its implementation (i.e. objectives, policies, processes, and
procedures for information security) will be reviewed independently by the ISM at planned
intervals, or whenever significant changes to security implementation have occurred.
The CIO, acting by the ISM, will review and recommend changes to the Policy annually, or as
appropriate, commencing from the date of its adoption.
GENERAL PROCEDURE FOR INFORMATION PRIVACY
A.OVERVIEW
The Policy applies to activities that involve the use of the City’s information assets, namely,
the Information of persons doing business with the City or receiving services from the City,
which are owned by, or entrusted to, the City and will be made available to the City’s
employees and third party contractors under contract to the City to provide Software as a
Service consulting services. These activities include, without limitation, accessing the
Internet, using e‐mail, accessing the City’s intranet or other networks, systems, or devices.
The term “information assets” also includes the personal information of the City’s
employees and any other related organizations while those assets are under the City’s
control. Security measures will be designed, implemented, and maintained to ensure that
only authorized persons will enjoy access to the information assets. The City’s staff will act
to protect its information assets from theft, damage, loss, compromise, and inappropriate
disclosure or alteration. The City will plan, design, implement and maintain information
management systems, networks and processes in order to assure the appropriate
confidentiality, integrity, and availability of its information assets to the City’s employees
and authorized third parties.
B.PERSONAL INFORMATION AND CHOICE
Except as permitted or provided by applicable laws, the City will not share the Information
of any person doing business with the City, or receiving services from the City, in violation of
this Policy, unless that person has consented to the City’s sharing of such information
during the conduct of the City’s business as a local government agency with third parties
under contract to the City to provide services.
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C.METHODS OF COLLECTION OF PERSONAL INFORMATION
The City may gather the Information from a variety of sources and resources, provided that
the collection of such information is both necessary and appropriate in order for the City to
conduct business as a local government agency in its governmental and proprietary
capacities. That information may be gathered at service windows and contact centers as
well as at web sites, by mobile applications, and with other technologies, wherever the City
may interact with persons who need to share such formation in order to secure the City’s
services.
The City’s staff will inform the persons whose Information are covered by this Policy that
the City’s web site may use “cookies” to customize the browsing experience with the City of
Palo Alto web site. The City will note that a cookie contains unique information that a web
site can use to track, among others, the Internet Protocol address of the computer used to
access the City’s web sites, the identification of the browser software and operating
systems used, the date and time a user accessed the site, and the Internet address of the
website from which the user linked to the City’s web sites. Cookies created on the user’s
computer by using the City’s web site do not contain the Information, and thus do not
compromise the user’s privacy or security. Users can refuse the cookies or delete the cookie
files from their computers by using any of the widely available methods. If the user chooses
not to accept a cookie on his or her computer, it will not prevent or prohibit the user from
gaining access to or using the City’s sites.
D.UTILITIES SERVICE
In the provision of utility services to persons located within Palo Alto, the City of Palo Alto
Utilities Department (“CPAU”) will collect the Information in order to initiate and manage
utility services to customers. To the extent the management of that information is not
specifically addressed in the Utilities Rules and Regulations or other ordinances, rules,
regulations or procedures, this Policy will apply; provided, however, any such Rules and
Regulations must conform to this Policy, unless otherwise directed or approved by the
Council. This includes the sharing of CPAU‐collected Information with other City
departments except as may be required by law.
Businesses and residents with standard utility meters and/or having non‐metered monthly
services will have secure access through a CPAU website to their Information, including,
without limitation, their monthly utility usage and billing data. In addition to their regular
monthly utilities billing, businesses and residents with non‐standard or experimental
electric, water or natural gas meters may have their usage and/or billing data provided to
them through non‐City electronic portals at different intervals than with the standard
monthly billing.
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Businesses and residents with such non‐standard or experimental metering will have their
Information covered by the same privacy protections and personal information exchange
rules applicable to Information under applicable federal and California laws.
E.PUBLIC DISCLOSURE
The Information that is collected by the City in the ordinary course and scope of conducting
its business could be incorporated in a public record that may be subject to inspection and
copying by the public, unless such information is exempt from disclosure to the public by
California law.
F.ACCESS TO PERSONAL INFORMATION
The City will take reasonable steps to verify a person’s identity before the City will grant
anyone online access to that person’s Information. Each City department that collects
Information will afford access to affected persons who can review and update that
information at reasonable times.
G.SECURITY, CONFIDENTIALITY AND NON‐DISCLOSURE
Except as otherwise provided by applicable law or this Policy, the City will treat the
Information of persons covered by this Policy as confidential and will not disclose it, or
permit it to be disclosed, to third parties without the express written consent of the person
affected. The City will develop and maintain reasonable controls that are designed to
protect the confidentiality and security of the Information of persons covered by this Policy.
The City may authorize the City’s employee and or third party contractors to access and/or
use the Information of persons who do business with the City or receive services from the
City. In those instances, the City will require the City’s employee and/or the third party
contractors to agree to use such Information only in furtherance of City‐related business
and in accordance with the Policy.
If the City becomes aware of a breach, or has reasonable grounds to believe that a security
breach has occurred, with respect to the Information of a person, the City will notify the
affected person of such breach in accordance with applicable laws. The notice of breach will
include the date(s) or estimated date(s) of the known or suspected breach, the nature of
the Information that is the subject of the breach, and the proposed action to be taken or
the responsive action taken by the City.
H.DATA RETENTION / INFORMATION RETENTION
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The City will store and secure all Information for a period of time as may be required by law,
or if no period is established by law, for seven (7) years, and thereafter such information
will be scheduled for destruction.
I.SOFTWARE AS A SERVICE (SAAS) OVERSIGHT
The City may engage third party contractors and vendors to provide software application
and database services, commonly known as Software‐as‐a‐Service (SaaS).
In order to assure the privacy and security of the Information of those who do business with
the City and those who received services from the City, as a condition of selling goods
and/or services to the City, the SaaS services provider and its subcontractors, if any,
including any IT infrastructure services provider, shall design, install, provide, and maintain
a secure IT environment, while it performs such services and/or furnishes goods to the City,
to the extent any scope of work or services implicates the confidentiality and privacy of the
Information.
These requirements include information security directives pertaining to: (a) the IT
infrastructure, by which the services are provided to the City, including connection to the
City's IT systems; (b) the SaaS services provider’s operations and maintenance processes
needed to support the IT environment, including disaster recovery and business continuity
planning; and (c) the IT infrastructure performance monitoring services to ensure a secure
and reliable environment and service availability to the City. The term “IT infrastructure”
refers to the integrated framework, including, without limitation, data centers, computers,
and database management devices, upon which digital networks operate.
Prior to entering into an agreement to provide services to the City, the City’s staff will
require the SaaS services provider to complete and submit an Information Security and
Privacy Questionnaire. In the event that the SaaS services provider reasonably determines
that it cannot fulfill the information security requirements during the course of providing
services, the City will require the SaaS services provider to promptly inform the ISM.
J.FAIR AND ACCURATE CREDIT TRANSACTION ACT OF 2003
CPAU will require utility customers to provide their Information in order for the City to
initiate and manage utility services to them.
Federal regulations, implementing the Fair and Accurate Credit Transactions Act of 2003
(Public Law 108‐159), including the Red Flag Rules, require that CPAU, as a “covered
financial institution or creditor” which provides services in advance of payment and which
can affect consumer credit, develop and implement procedures for an identity theft
program for new and existing accounts to detect, prevent, respond and mitigate potential
identity theft of its customers’ Information.
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CPAU procedures for potential identity theft will be reviewed independently by the ISM
annually or whenever significant changes to security implementation have occurred. The
ISM will recommend changes to CPAU identity theft procedures, or as appropriate, so as to
conform to this Policy.
There are California laws which are applicable to identity theft; they are set forth in
California Civil Code § 1798.92.
NOTE: Questions regarding this policy should be referred to the Information Technology
Department, as appropriate.
12/5/2017
Recommended:
Director Information Technology/CIO Date
12/13/2017
Approved:
City Manager Date
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Information Security
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EXHIBIT “F”
CYBERSECURITY TERMS AND CONDITIONS
In order to assure the privacy and security of the personal information of the City's customers and
people who do business with the City, including, without limitation, vendors, utility customers, library
patrons, and other individuals and companies, who are required to share such information with the City,
as a condition of receiving services from the City or selling goods and services to the City, including,
without limitation, the Software as a Service services provider (the "Consultant") and its subcontractors,
if any, including, without limitation, any Information Technology ("IT") infrastructure services provider,
shall design, install, provide, and maintain a secure IT environment, described below, while it renders
and performs the Services and furnishes goods, if any, described in the Statement of Work, Exhibit B,
to the extent any scope of work implicates the confidentiality and privacy of the personal information of
the City's customers. The Consultant shall fulfill the data and information security requirements (the
"Requirements") set forth in Part A below.
A "secure IT environment" includes (a) the IT infrastructure, by which the Services are provided to the
City, including connection to the City's IT systems; (b) the Consultant's operations and maintenance
processes needed to support the environment, including disaster recovery and business continuity
planning; and (c) the IT infrastructure performance monitoring services to ensure a secure and reliable
environment and service availability to the City. "IT infrastructure" refers to the integrated framework,
including, without limitation, data centers, computers, and database management devices, upon which
digital networks operate.
In the event that, after the Effective Date, the Consultant reasonably determines that it cannot fulfill the
Requirements, the Consultant shall promptly inform the City of its determination and submit, in writing,
one or more alternate countermeasure options to the Requirements (the "Alternate Requirements" as
set forth in Part B), which may be accepted or rejected in the reasonable satisfaction of the Information
Security Manager (the "ISM").
Part A. Requirements:
The Consultant shall at all times during the term of any contract between the City and the Consultant:
(a)Appoint or designate an employee, preferably an executive officer, as the security liaison to the
City with respect to the Services to be performed under this Agreement.
(b)Comply with the City's Information Privacy Policy:
(c) Have adopted and implemented information security and privacy policies that are documented,
are accessible to the City, and conform to ISO 27001/2 – Information Security Management
Systems (ISMS) Standards. See the following:
http://www.iso.org/iso/home/store/catalogue_tc/catalogue_detail.htm?csnumber=42103
http://www.iso.org/iso/iso_catalogue/catalogue_tc/catalogue_detail.htm?csnumber=50297
(d)Conduct routine data and information security compliance training of its personnel that is
appropriate to their role.
(e)Develop and maintain detailed documentation of the IT infrastructure, including software
versions and patch levels.
(f)Develop an independently verifiable process, consistent with industry standards, for performing
professional and criminal background checks of its employees that (1) would permit verification
of employees' personal identity and employment status, and (2) would enable the immediate
denial of access to the City's confidential data and information by any of its employees who no
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longer would require access to that information or who are terminated.
(g) Provide a list of IT infrastructure components in order to verify whether the Consultant has met
or has failed to meet any objective terms and conditions.
(h) Implement access accountability (identification and authentication) architecture and support
role-based access control ("RBAC") and segregation of duties ("SoD") mechanisms for all
personnel, systems, and Software used to provide the Services. "RBAC" refers to a computer
systems security approach to restricting access only to authorized users. "SoD" is an approach
that would require more than one individual to complete a security task in order to promote the
detection and prevention of fraud and errors.
(i) Assist the City in undertaking annually an assessment to assure that: (1) all elements of the
Services' environment design and deployment are known to the City, and (2) it has implemented
measures in accordance with industry best practices applicable to secure coding and secure IT
architecture.
(j) Provide and maintain secure intersystem communication paths that would ensure the
confidentiality, integrity, and availability of the City's information.
(k) Deploy and maintain IT system upgrades, patches and configurations conforming to current
patch and/or release levels by not later than one (1) week after its date of release. Emergency
security patches must be installed within 24 hours after its date of release.
(l) Provide for the timely detection of, response to, and the reporting of security incidents, including
on-going incident monitoring with logging.
(m) Notify the City within one (1) hour of detecting a security incident that results in the unauthorized
access to or the misuse of the City's confidential data and information.
(n) Inform the City that any third party service provider(s) meet(s) all of the Requirements.
(o) Perform security self-audits on a regular basis and not less frequently than on a quarterly basis,
and provide the required summary reports of those self-audits to the ISM on the annual
anniversary date or any other date agreed to by the Parties.
(p) Accommodate, as practicable, and upon reasonable prior notice by the City, the City's
performance of random site security audits at the Consultant's site(s), including the site(s) of a
third-party service provider(s), as applicable. The scope of these audits will extend to the
Consultant's and its third-party service provider(s)' awareness of security policies and practices,
systems configurations, access authentication and authorization, and incident detection and
response.
(q) Cooperate with the City to ensure that to the extent required by applicable laws, rules and
regulations, and the Confidential Information will be accessible only by the Consultant and any
authorized third-party service provider's personnel.
(r) Perform regular, reliable secured backups of all data needed to maximize the availability of the
Services. Adequately encrypt the City of Palo Alto's data, during the operational process, hosted
at rest, and the backup stage at the Vendors' environment (including Vendor's contracting
organization's environment).
(s) Maintain records relating to the Services for a period of three (3) years after the expiration or
earlier termination of this Agreement and in a mutually agreeable storage medium. Within thirty
(30) days after the effective date of expiration or earlier termination of this Agreement, all of
those records relating to the performance of the Services shall be provided to the ISM.
(t) Maintain the Confidential Information in accordance with applicable federal, state, and local data
and information privacy laws, rules, and regulations.
(u) Encrypt the Confidential Information before delivering the same by electronic mail to the City
and or any authorized recipient.
(v) Provide Network Layer IP filtering services to allow access only from the City of Palo Alto's IP
address to the Vendor environment (primarily hosted for the City of Palo Alto).
(w) Offer a robust disaster recovery and business continuity (DR-BCP) solutions to the City for the
systems and services the Vendor provides to the City.
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(x) Provide and support Single Sign-on (SSO) and Multifactor Authentication (MFA) solutions for
authentication and authorization services from the "City's environment to the Vendor's
environment," and Vendor's environment to the Vendor's cloud services/hosted environment."
The Vendor shall allow two employees of the City to have superuser and super-admin access
to the Vendor's IT environment, and a cloud-hosted IT environment belongs to the City.
(y) Unless otherwise addressed in the Agreement, shall not hold the City liable for any direct,
indirect or punitive damages whatsoever including, without limitation, damages for loss of use,
data or profits, arising out of or in any way connected with the City's IT environment, including,
without limitation, IT infrastructure communications.
(z) The Vendor must provide evidence of valid cyber liability insurance policy per the City’s
EXHIBIT “D” INSURANCE REQUIREMENTS.
Part B. Alternate Requirements:
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CITY OF PALO ALTO CONTRACT NO. C26195690
AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF PALO ALTO AND
PROSPECT SILICON VALLEY
This Agreement for Professional Services (this “Agreement”) is entered into as of the 4th day of
May, 2026 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California
chartered municipal corporation (“CITY”), and PROSPECT SILICON VALLEY, a non-profit
corporation, located at 345 California St., Suite 600, San Francisco, CA 94104
(“CONSULTANT”).
The following recitals are a substantive portion of this Agreement and are fully incorporated herein
by this reference:
RECITALS
A. CITY intends to reduce greenhouse gas (GHG) emissions through customer adoption of
high-efficiency equipment and electrification technologies at commercial sites, including shared
equipment at multifamily properties (the “Project”) and desires to engage a consultant to support
customers in selecting optimal efficiency and electrification measures that align with their
operational needs and financial circumstances in connection with the Project (the “Services”, as
detailed more fully in Exhibit A).
B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the
necessary professional expertise, qualifications, and capability, and all required licenses and/or
certifications to provide the Services.
C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide
the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this
Agreement, the parties agree as follows:
SECTION 1. SCOPE OF SERVICES.CONSULTANT shall perform the Services described
in Exhibit A in accordance with the terms and conditions contained in this Agreement. The
performance of all Services shall be to the reasonable satisfaction of CITY.
Optional On-Call Provision (This provision only applies if checked and only applies to
on-call agreements.)
CITY may elect to, but is not required to, authorize on-call Services up to the maximum
compensation amount set forth in Section 4 (Not to Exceed Compensation).
CONSULTANT shall provide on-call Services only by advanced, written authorization
from CITY as detailed in this Section. On-call Services, if any, shall be authorized by
CITY, as needed, with a Task Order assigned and approved by CITY’s Project Manager,
as identified in Section 13 (Project Management). Each Task Order shall be in substantially
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the same form as Exhibit A-1 entitled “PROFESSIONAL SERVICES TASK ORDER”.
Each Task Order shall contain a specific scope of services, schedule of performance and
maximum compensation amount, in accordance with the provisions of this Agreement.
Compensation for on-call Services shall be specified by CITY in the Task Order, based on
whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set
forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s
Project Manager within the time specified by the Project Manager, and upon authorization
by CITY (defined as counter-signature by the CITY Project Manager), the fully executed
Task Order shall become part of this Agreement. The cumulative total compensation due
to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the
amount of compensation set forth in Section 4. CONSULTANT shall only be compensated
for on-call Services performed under an authorized Task Order and only up to the
maximum compensation amount set forth in Section 4. Performance of and payment for
any on-call Services are subject to all requirements and restrictions in this Agreement.
SECTION 2. TERM.
The term of this Agreement shall be from the effective date of this agreement through May 3, 2029
unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance
of Services under this Agreement. CONSULTANT shall complete the Services within the term of
this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE
OF PERFORMANCE”. Any Services for which times for performance are not specified in this
Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and
timely manner based upon the circumstances and direction communicated to the CONSULTANT.
CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery
of damages for delay if the extension is required due to the fault of CONSULTANT.
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 Eighty-
Two Thousand Five Hundred Dollars ($682,500) over the three-year term. 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.
Optional Additional Services Provision (This provision applies only if checked and a
not-to-exceed compensation amount for Additional Services is allocated below under this
Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not-
to-exceed compensation amount of Sixty-Seven Thousand Five Hundred Dollars
($67,500) for the performance of Additional Services (as defined below). The total
compensation for performance of the Services, Additional Services and any reimbursable
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expenses specified in Exhibit C, shall not exceed Seven Hundred Fifty Thousand
Dollars ($750,000), as detailed in Exhibit C.
“Additional Services” means any work that is determined by CITY to be necessary for the
proper completion of the Project, but which is not included within the Scope of Services
described at Exhibit A. CITY may elect to, but is not required to, authorize Additional
Services up to the maximum amount of compensation set forth for Additional Services in
this Section 4. CONSULTANT shall provide Additional Services only by advanced,
written authorization from CITY as detailed in this Section. Additional Services, if any,
shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project
Manager, as identified in Section 13 (Project Management). Each Task Order shall be in
substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK
ORDER”. Each Task Order shall contain a specific scope of services, schedule of
performance and maximum compensation amount, in accordance with the provisions of
this Agreement. Compensation for Additional Services shall be specified by CITY in the
Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit
C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s
Project Manager within the time specified by the Project Manager, and upon authorization
by CITY (defined as counter-signature by the CITY Project Manager), the fully executed
Task Order shall become part of this Agreement. The cumulative total compensation to
CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the
amount of compensation set forth for Additional Services in this Section 4.
CONSULTANT shall only be compensated for Additional Services performed under an
authorized Task Order and only up to the maximum amount of compensation set forth for
Additional Services in this Section 4. Performance of and payment for any Additional
Services are subject to all requirements and restrictions in this Agreement.
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly
invoices to the CITY describing the Services performed and the applicable charges (including, if
applicable, an identification of personnel who performed the Services, hours worked, hourly rates,
and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule
of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of
completion of each task. The information in CONSULTANT’s invoices shall be subject to
verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the
address specified in Section 13 (Project Management) below. CITY will generally process and
pay invoices within thirty (30) days of receipt of an acceptable invoice.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE.All Services shall be performed
by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it,
its employees and subcontractors, if any, possess the professional and technical personnel
necessary to perform the Services required by this Agreement and that the personnel have
sufficient skill and experience to perform the Services assigned to them. CONSULTANT
represents that it, its employees and subcontractors, if any, have and shall maintain during the term
of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature
that are legally required to perform the Services. All Services to be furnished by CONSULTANT
under this Agreement shall meet the professional standard and quality that prevail among
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professionals in the same discipline and of similar knowledge and skill engaged in related work
throughout California under the same or similar circumstances.
SECTION 7. COMPLIANCE WITH LAWS.CONSULTANT shall keep itself informed of
and in compliance with all federal, state and local laws, ordinances, regulations, and orders that
may affect in any manner the Project or the performance of the Services or those engaged to
perform Services under this Agreement, as amended from time to time. CONSULTANT shall
procure all permits and licenses, pay all charges and fees, and give all notices required by law in
the performance of the Services.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs,
including, but not limited to, increases in the cost of Services, arising from or caused by
CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such
errors and omissions, any change order markup costs, or costs arising from delay caused by the
errors and omissions or unreasonable delay in correcting the errors and omissions.
SECTION 9. COST ESTIMATES.If this Agreement pertains to the design of a public works
project, CONSULTANT shall submit estimates of probable construction costs at each phase of
design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s
stated construction budget by ten percent (10%) or more, CONSULTANT shall make
recommendations to CITY for aligning the Project design with the budget, incorporate CITY
approved recommendations, and revise the design to meet the Project budget, at no additional cost
to CITY.
SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees
that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be
deemed at all times to be an independent contractor and shall be wholly responsible for the manner
in which CONSULTANT performs the Services requested by CITY under this Agreement.
CONSULTANT and any agent or employee of CONSULTANT will not have employee status
with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY
pertaining to or in connection with any retirement, health or other benefits that CITY may offer its
employees. CONSULTANT will be responsible for all obligations and payments, whether
imposed by federal, state or local law, including, but not limited to, FICA, income tax
withholdings, workers’ compensation, unemployment compensation, insurance, and other similar
responsibilities related to CONSULTANT’s performance of the Services, or any agent or
employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as
creating an employment or agency relationship between CITY and CONSULTANT or any agent
or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY
shall be construed as providing for direction as to policy and the result of CONSULTANT’s
provision of the Services only, and not as to the means by which such a result is obtained.
SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of
CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign
or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s
obligations hereunder without the prior written approval of the City Manager. Any purported
assignment made without the prior written approval of the City Manager will be void and without
effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement
will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the
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parties.
SECTION 12. SUBCONTRACTING.
Option A: No Subcontractor:CONSULTANT shall not subcontract any portion of the
Services to be performed under this Agreement without the prior written authorization of the City
Manager or designee. In the event CONSULTANT does subcontract any portion of the work to
be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and
omissions of subcontractors.
Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY
agrees that subcontractors may be used to complete the Services. The subcontractors authorized
by CITY to perform work on this Project are:
Alter Engineers: Shannon Allison Email: shannon@alterengineers.com, Telephone: (510)
406-8535
IDeAS Consulting: David Kaneda, Email: dkaneda@ideas-c.com, Telephone: (408)930-
3560
CONSULTANT shall be responsible for directing the work of any subcontractors and for any
compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning
compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts
and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with
the prior written approval of the City Manager or designee.
SECTION 13. PROJECT MANAGEMENT.CONSULTANT will assign Doug Davenport as
the CONSULTANT’s Project Manager to have supervisory responsibility for the performance,
progress, and execution of the Services and represent CONSULTANT during the day-to-day
performance of the Services. If circumstances cause the substitution of the CONSULTANT’s
Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment
of a substitute Project Manager and the assignment of any key new or replacement personnel will
be subject to the prior written approval of the CITY’s Project Manager. CONSULTANT, at
CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not
perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate
or timely completion of the Services or a threat to the safety of persons or property.
CITY’s Project Manager is Jesus Prado, Utilities Department, 250 Hamilton Ave., Palo Alto, CA
94301, Telephone: 650-465-4518, Email: jesus.prado@paloalto.gov. CITY’s Project Manager will
be CONSULTANT’s point of contact with respect to performance, progress and execution of the
Services. CITY may designate an alternate Project Manager from time to time.
SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without
limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications,
computations, models, recordings, data, documents, and other materials and copyright interests
developed under this Agreement, in any form or media, shall be and remain the exclusive property
of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights
which arise from creation of the work product pursuant to this Agreement are vested in CITY, and
CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual
property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall
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make any of such work product available to any individual or organization without the prior written
approval of the City Manager or designee. CONSULTANT makes no representation of the
suitability of the work product for use in or application to circumstances not contemplated by the
Scope of Services.
SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized
representatives to audit, at any reasonable time during the term of this Agreement and for four (4)
years from the date of final payment, CONSULTANT’s records pertaining to matters covered by
this Agreement, including without limitation records demonstrating compliance with the
requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain
and retain accurate books and records in accordance with generally accepted accounting principles
for at least four (4) years after the expiration or earlier termination of this Agreement or the
completion of any audit hereunder, whichever is later.
SECTION 16. INDEMNITY.
16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify,
defend and hold harmless CITY, its Council members, officers, employees and agents (each an
“Indemnified Party”) from and against any and all demands, claims, or liability of any nature,
including death or injury to any person, property damage or any other loss, including all costs and
expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements
(“Claims”) resulting from, arising out of or in any manner related to performance or
nonperformance by CONSULTANT, its officers, employees, agents or contractors under this
Agreement, regardless of whether or not it is caused in part by an Indemnified Party.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to
require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active
negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of,
or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its
officers, employees, agents or contractors under this Agreement.
16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not
operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive
the expiration or early termination of this Agreement.
SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under
this Agreement is effective unless it is in writing in accordance with Section 29.4 of this
Agreement. No delay or failure to require performance of any provision of this Agreement shall
constitute a waiver of that provision as to that or any other instance. Any waiver granted shall
apply solely to the specific instance expressly stated. No single or partial exercise of any right or
remedy will preclude any other or further exercise of any right or remedy.
SECTION 18. INSURANCE.
18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in
full force and effect during the term of this Agreement, the insurance coverage described in Exhibit
D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall
obtain a policy endorsement naming CITY as an additional insured under any general liability or
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automobile policy or policies.
18.2. All insurance coverage required hereunder shall be provided through
carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or
authorized to transact insurance business in the State of California. Any and all contractors of
CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in
full force and effect during the term of this Agreement, identical insurance coverage, naming CITY
as an additional insured under such policies as required above.
18.3. Certificates evidencing such insurance shall be filed with CITY
concurrently with the execution of this Agreement. The certificates will be subject to the approval
of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary
coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except
after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation
or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30)
days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written
notice of the cancellation or modification within two (2) business days of the CONSULTANT’s
receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates
evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term
of this Agreement.
18.4. The procuring of such required policy or policies of insurance will not be
construed to limit CONSULTANT’s liability hereunder nor to fulfill the indemnification
provisions of this Agreement. Notwithstanding the policy or policies of insurance,
CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss
caused by or directly arising as a result of the Services performed under this Agreement, including
such damage, injury, or loss arising after the Agreement is terminated or the term has expired.
SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The City Manager may suspend the performance of the Services, in whole
or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written
notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material
obligations under this Agreement, in addition to all other remedies provided under this Agreement
or at law, the City Manager may terminate this Agreement sooner upon written notice of
termination. Upon receipt of any notice of suspension or termination, CONSULTANT will
discontinue its performance of the Services on the effective date in the notice of suspension or
termination.
19.2. In event of suspension or termination, CONSULTANT will deliver to the
City Manager on or before the effective date in the notice of suspension or termination, any and
all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed,
prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such
work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).
19.3. In event of suspension or termination, CONSULTANT will be paid for the
Services rendered and work products delivered to CITY in accordance with the Scope of Services
up to the effective date in the notice of suspension or termination; provided, however, if this
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Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be
obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services
provided in material conformity with this Agreement as such determination is made by the City
Manager acting in the reasonable exercise of his/her discretion. The following Sections will
survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25,
27, 28, 29 and 30.
19.4. No payment, partial payment, acceptance, or partial acceptance by CITY
will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made
in accordance with Section 17 (Waivers).
SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by
certified mail, addressed as follows:
To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
With a copy to the Purchasing Manager
To CONSULTANT: Attention of the Project Manager at the address of
CONSULTANT recited on the first page of this Agreement.
CONSULTANT shall provide written notice to CITY of any change of address.
SECTION 21. CONFLICT OF INTEREST.
21.1. In executing this Agreement, CONSULTANT covenants that it presently
has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which
would conflict in any manner or degree with the performance of the Services.
21.2. CONSULTANT further covenants that, in the performance of this
Agreement, it will not employ subcontractors or other persons or parties having such an interest.
CONSULTANT certifies that no person who has or will have any financial interest under this
Agreement is an officer or employee of CITY; this provision will be interpreted in accordance
with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the
State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any
conflict arises.
21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by
the Regulations of the Fair Political Practices Commission, CONSULTANT will file the
appropriate financial disclosure documents required by the Palo Alto Municipal Code and the
Political Reform Act of 1974, as amended from time to time.
SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.
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22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended
from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not
discriminate in the employment of any person due to that person’s race, skin color, gender, gender
identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic
information or condition, housing status, marital status, familial status, weight or height of such
person. CONSULTANT acknowledges that it has read and understands the provisions of Section
2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the
penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining
to nondiscrimination in employment.
22.2. CONSULTANT understands and agrees that pursuant to the Americans
Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to
the public, whether directly or through a contractor or subcontractor, are required to be accessible
to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a
manner that complies with the ADA and any other applicable federal, state and local disability
rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate
against persons with disabilities in the provision of services, benefits or activities provided under
this Agreement.
SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO
WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally
Preferred Purchasing policies which are available at CITY’s Purchasing Department, hereby
incorporated by reference and as amended from time to time. CONSULTANT shall comply with
waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero
Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and,
third, recycling or composting waste. In particular, CONSULTANT shall comply with the
following Zero Waste requirements:
(a) All printed materials provided by CONSULTANT to CITY generated from a
personal computer and printer including but not limited to, proposals, quotes, invoices, reports,
and public education materials, shall be double-sided and printed on a minimum of 30% or greater
post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any
submitted materials printed by a professional printing company shall be a minimum of 30% or
greater post-consumer material and printed with vegetable-based inks.
(b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in
accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended
Producer Responsibility requirements for products and packaging. A copy of this policy is on file
at the Purchasing Department’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no
additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from
the facility accepting the pallets to verify that pallets are not being disposed.
SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE.
CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62
(Citywide Minimum Wage), as amended from time to time. In particular, for any employee
otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a
calendar week within the geographic boundaries of the City, CONSULTANT shall pay such
employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030
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for each hour worked within the geographic boundaries of the City of Palo Alto. In addition,
CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in
accordance with Palo Alto Municipal Code Section 4.62.060.
SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of
the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to
time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the
event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal
year in the event that funds are only appropriated for a portion of the fiscal year and funds for this
Agreement are no longer available. This Section shall take precedence in the event of a conflict
with any other covenant, term, condition, or provision of this Agreement.
SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC
WORKS CONTRACTS.
26.1. This Project is not subject to prevailing wages and related
requirements. CONSULTANT is not required to pay prevailing wages and meet related
requirements under the California Labor Code and California Code of Regulations in the
performance and implementation of the Project if the contract:
(1) is not a public works contract;
(2) is for a public works construction project of $25,000 or less, per California
Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or
(3) is for a public works alteration, demolition, repair, or maintenance project of
$15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and
1773.3(j).
SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”.For
purposes of this Section 27, a “9204 Public Works Project” means the erection, construction,
alteration, repair, or improvement of any public structure, building, road, or other public
improvement of any kind. (Cal. Pub. Cont. Code § 9204.)
This Project is not a 9204 Public Works Project.
SECTION 28. CONFIDENTIAL INFORMATION.
28.1. In the performance of this Agreement, CONSULTANT may have access to
CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential
Information in strict confidence, not disclose it to any third party, and will use it only for the
performance of its obligations to CITY under this Agreement and for no other purpose.
CONSULTANT will maintain reasonable and appropriate administrative, technical and physical
safeguards to ensure the security, confidentiality and integrity of the Confidential Information.
Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its
employees, agents and subcontractors, if any, to the extent they have a need to know in order to
perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose,
provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality
and security obligations of this Agreement.
28.2. “Confidential Information” means all data, information (including without
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limitation “Personal Information” about a California resident as defined in Civil Code Section
1798 et seq., as amended from time to time) and materials, in any form or media, tangible or
intangible, provided or otherwise made available to CONSULTANT by CITY, directly or
indirectly, pursuant to this Agreement. Confidential Information excludes information that
CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it
was provided or has subsequently become publicly known other than by a breach of this
Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of
confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by
CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is
independently developed by employees of CONSULTANT without any use of or access to the
Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an
authorized representative of CITY.
28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential
Information to the extent required by order of a court of competent jurisdiction or governmental
body, provided that CONSULTANT will notify CITY in writing of such order immediately upon
receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing
so), to give CITY an opportunity to oppose or otherwise respond to such order.
28.4. CONSULTANT will notify City promptly upon learning of any breach in
the security of its systems or unauthorized disclosure of, or access to, Confidential Information in
its possession or control, and if such Confidential Information consists of Personal Information,
CONSULTANT will provide information to CITY sufficient to meet the notice requirements of
Civil Code Section 1798 et seq., as applicable, as amended from time to time.
28.5. Prior to or upon termination or expiration of this Agreement,
CONSULTANT will honor any request from the CITY to return or securely destroy all copies of
Confidential Information. All Confidential Information is and will remain the property of the CITY
and nothing contained in this Agreement grants or confers any rights to such Confidential
Information on CONSULTANT.
28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the
terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.
SECTION 29. MISCELLANEOUS PROVISIONS.
29.1. This Agreement will be governed by California law, without regard to its
conflict of law provisions.
29.2. In the event that an action is brought, the parties agree that trial of such
action will be vested exclusively in the state courts of California in the County of Santa Clara,
State of California.
29.3. The prevailing party in any action brought to enforce the provisions of this
Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that
action. The prevailing party shall be entitled to recover an amount equal to the fair market value
of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third
parties.
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29.4. This Agreement, including all exhibits, constitutes the entire and integrated
agreement between the parties with respect to the subject matter of this Agreement, and supersedes
all prior agreements, negotiations, representations, statements and undertakings, either oral or
written. This Agreement may be amended only by a written instrument, which is signed by the
authorized representatives of the parties and approved as required under Palo Alto Municipal
Code, as amended from time to time.
29.5. If a court of competent jurisdiction finds or rules that any provision of this
Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in
full force and effect.
29.6. In the event of a conflict between the terms of this Agreement and the
exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall
control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if
any), the exhibits shall control.
29.7. The provisions of all checked boxes in this Agreement shall apply to this
Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.
29.8. All section headings contained in this Agreement are for convenience and
reference only and are not intended to define or limit the scope of any provision of this Agreement.
29.9. This Agreement may be signed in multiple counterparts, which, when
executed by the authorized representatives of the parties, shall together constitute a single binding
agreement.
29.10. This Agreement is entered into solely for the benefit of CITY and CONSULTANT
and is not intended to confer any rights or remedies upon any third party. No third party shall be
deemed a third-party beneficiary of this Agreement or have any right to enforce any provision of
this Agreement.
SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is
selected below, is hereby attached and incorporated into this Agreement by reference as though
fully set forth herein:
EXHIBIT A: SCOPE OF SERVICES
EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION
EXHIBIT C-1: SCHEDULE OF RATES
EXHIBIT D: INSURANCE REQUIREMENTS
EXHIBIT E: INFORMATION PRIVACY POLICY
EXHIBIT F: CYBERSECURITY TERMS AND CONDITIONS
THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS
ARE ATTACHED.
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CONTRACT NO. C26195690
SIGNATURE PAGE
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives
executed this Agreement as of the date first above written.
CITY OF PALO ALTO
____________________________
City Manager
APPROVED AS TO FORM:
__________________________
City Attorney or designee
PROSPECT SILICON VALLEY
Officer 1
By: ________________________________
Name: ______________________________
Title: _______________________________
Officer 2 (Required for Corp. or LLC)
By: ________________________________
Name: ______________________________
Title: _______________________________
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EXHIBIT A
SCOPE OF SERVICES
CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF
SERVICES”. Notwithstanding any provision herein to the contrary, CONSULTANT’s duties and
services described in this Scope of Services shall not include preparing or assisting CITY with any
portion of CITY’s preparation of a request for proposals, request for qualifications, or any other
solicitation regarding a subsequent or additional contract with CITY. CITY shall at all times retain
responsibility for public contracting, including with respect to any subsequent phase of this project.
CONSULTANT’s participation in the planning, discussions, or drawing of project plans or
specifications shall be limited to conceptual, preliminary, or initial plans or specifications.
CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on
any subsequent phase of this project have access to the same information, including all conceptual,
preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Scope
of Services.
CONSULTANT will provide the following:
Task 1: Program Kick Off and Set Up
Task 1.1: CONSULTANT shall organize a kick-off meeting to review budget, staffing plan,
roles, customer project needs; identify customer-facing documents as well as program
management documents such as CONSULTANT invoices and program management reports.
The kick-off meeting will also set up logistics for ongoing meetings between CONSULTANT
and City of Palo Alto Utilities (CPAU).
Task 1.1 Deliverables: Meeting agenda and minutes
Task 1.2: Develop Program Documents: In collaboration with CPAU, CONSULTANT will
develop templates for customer-facing documents, checklists or resources to support
electrification projects, and program management documents.
Task 1.2 Deliverables: Templates for customer-facing documents, program management
documents, and resources to support customer electrification projects.
Task 2: Provide Technical Assistance for Electrification Projects at Commercial and Multifamily
Sites
Upon request by CITY, CONSULTANT shall perform one or more of the following tasks, as
directed by CITY and, where applicable, as authorized by Task Order pursuant to Section 1 of
the Agreement:
(i) Electrification Roadmap Development
Conduct site visits to assess customer’s mechanical and electrical infrastructure and
review as-built drawings (including EVSE readiness)
o Review existing design drawings, renovation reports, utility bills, and trend data.
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o Document existing MEP systems and assess electrical infrastructure.
Develop customer-specific mechanical systems strategies
o Develop recommendations for all-electric mechanical systems, including pros and
cons, that address design, construction, and operations considerations.
o Highlight potential ways to improve the energy performance of existing systems
that may remain in place.
o Review building energy systems and potential to improve energy performance,
and offer a high level assessment of what renovations and improvements could be
possible to develop further.
Perform electric load calculations and projections for the customer property
o Analyze existing electrical energy use at site via available data or direct
measurement.
o Analyze peak demand at site under current and new projected loads.
o Estimate annual operational energy use from available data, normalized to a
typical year's operation.
Develop a phased roadmap outlining electrification potential and timing
o Analyze and discuss potential service impacts resulting from electrification and
identify strategies to limit such impacts, including the use of technologies such as
smart panels, controls or batteries.
o Analyze and discuss the anticipated impact of EV charging on current plans
Deliverables:
Written report identifying customer’s potential electrification opportunities,
recommendations on phased roadmap to implement electrification projects, estimated
project implementation costs, and projected energy and CO2 savings
(ii) Equipment Option Analysis
Review and validate proposed equipment specifications
o Review the customer’s proposed equipment and provide feedback based on cost,
energy savings, and operations and maintenance.
o Where applicable, recommend alternative equipment/systems including feedback
based on cost, potential energy savings, and O&M considerations.
Provide comparative analysis with lifecycle costs and estimated savings
o Analysis will incorporate best practices, rapid assessment tools, and whole
building energy modeling.
o The life cycle cost analysis includes capital first costs, annual maintenance costs,
annual energy costs, and replacement costs.
Recommend alternatives where applicable, noting inefficiencies and compatibility issues
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Deliverables:
Written report summarizing analysis results, including life cycle cost analysis results,
demand control strategies, and operational strategies to optimize energy costs
(iii) Load Management Planning & Design Support for Reliability and Resiliency
Conduct detailed electrical load analysis to verify system capacity for building
electrification and EV charging infrastructure
Evaluate and identify cost-effective opportunities for battery energy storage systems
(BESS) and microgrid deployment to meet customer’s reliability and resiliency needs
Recommend load management strategies and EVSE design options
Provide peer review of customer’s design documents and calculations
Deliverables:
Written report summarizing analysis results and recommendations
(iv) Permitting Support
Assist customers with navigation of the permitting process, including review of permit
forms and documentation requirements, and explanation of feedback or edits by the
permit agency
Deliverables:
Completed review of customer documentation to support permit application
(v) Verify installation and achieved savings (kWh, therms, CO2 reductions)
Provide installation verification support and document achieved savings after
commissioning and/or system start-up is complete
Deliverables:
Installation Verification Report documenting any customer-installed measures and
nameplate efficiency, equipment commissioning verification, photos of installed
measures, customer invoice(s) for the project, and calculation of achieved savings in
kWh, therms, CO2 reductions
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(vi) Verify achieved savings 12 months after installation (kWh, therms, CO2 reductions)
Verify customer energy savings (kWh, therms, CO2 reduction) 12 months after
equipment installation/upgrade by following the IPMVP protocol
Deliverables:
Savings Verification Report documenting the methodology used to document customer
savings, and the calculation of annual savings (kWh, therms, CO2 reductions) based on
measures installed at customer property
Throughout each customer project, CONSULTANT will provide progress updates to CPAU on a
weekly basis, or as otherwise directed by CITY’s Project Manager, and coordinate with
customers as needed.
All energy, cost, demand, and greenhouse gas savings estimates or projections are based on
available data and reasonable assumptions and are not guarantees of actual performance.
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EXHIBIT A-1
PROFESSIONAL SERVICES TASK ORDER
CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions
of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this
Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical
and supporting personnel required by this Task Order as described below.
CONTRACT NO.
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.:
2. CONSULTANT NAME:
3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________
I hereby authorize the performance of the
work described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: ______________________
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
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EXHIBIT B
SCHEDULE OF PERFORMANCE
CONSULTANT shall perform the Services so as to complete each milestone within the number
of days/weeks specified below. The time to complete each milestone may be increased or
decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so
long as all work is completed within the term of the Agreement. CONSULTANT shall provide a
detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the
notice to proceed (“NTP”) from the CITY.
Milestones
Completion
Number of Days/Weeks (as specified below)
from NTP
1. Task 1: Program Kick Off and Set Up 4 weeks from NTP
2. Task 2: Provide Technical Assistance to
Electrification Projects at Commercial and
Multifamily Sites
Ongoing, per Task Order
3.
4.
5.
6.
7.
8.
9.
10.
Optional Schedule of Performance Provision for On-Call or Additional Services Agreements.
(This provision only applies if checked and only applies to on-call agreements per Section 1 or
agreements with Additional Services per Section 4.)
The schedule of performance shall be as provided in the approved Task Order, as detailed in
Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case
of Additional Services, provided in all cases that the schedule of performance shall fall within the
term as provided in Section 2 (Term) of this Agreement.
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EXHIBIT C
COMPENSATION
CITY agrees to compensate CONSULTANT for 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 rate schedule attached as Exhibit C-1 up to the not to exceed
budget amount for each task set forth below.
CITY’s Project Manager may approve in writing the transfer of budget amounts between any of
the tasks or categories listed below, provided that the total compensation for the Services,
including any specified reimbursable expenses, and the total compensation for Additional Services
(if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this
Agreement.
CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and
Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or
expenses incurred for which payment would result in a total exceeding the maximum amount of
compensation set forth in this Agreement shall be at no cost to the CITY.
BUDGET SCHEDULE
TASK NOT TO EXCEED AMOUNT
Task 1: Program Kick Off and Set Up $5,000.00
Task 2: Provide Technical Assistance to
Electrification Projects at Commercial and
Multifamily Sites*
$677,500.00
Sub-total for Services $682,500.00
Reimbursable Expenses (if any)$0
Total for Services and Reimbursable Expenses $682,500.00
Additional Services (if any, per Section 4)$67,500.00
Maximum Total Compensation $750,000.00
*Maximum of $20,000 per project (Task Order) for Small and Medium Business (SMB)
customers. Maximum of $40,000 per project for Key Account (KA) customers.
REIMBURSABLE EXPENSES
CONSULTANT’S ordinary business expenses, such as administrative, overhead,
administrative support time/overtime, information systems, software and hardware,
photocopying, telecommunications (telephone, internet), in-house printing, insurance and
other ordinary business expenses, are included within the scope of payment for Services and
are not reimbursable expenses hereunder.
Reimbursable expenses, if any are specified as reimbursable under this section, will be
reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will
be reimbursed are: NONE up to the not-to-exceed amount of: $0.00.
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EXHIBIT C-1
SCHEDULE OF RATES
CONSULTANT’s schedule of rates is as follows:
Company Staff Title Hourly Rate
2026 2027 2028
ProspectSV
Principal $307 $318 $330
P.M./Consultant $156 $162 $170
Senior Associate $146 $151 $157
Associates $104 $108 $112
Alter Engineers Partner $255 $265 $276
Engineer $165 $172 $178
IDeAS Consulting
Principal $325 $338 $352
P.M./Consultant $200 $208 $216
Project Engineer $175 $182 $189
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EXHIBIT D
INSURANCE REQUIREMENTS
CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE
CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW,
AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR
AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA.
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH
OCCURRENCE AGGREGATE
YES
YES
WORKER’S COMPENSATION
EMPLOYER’S LIABILITY
STATUTORY
STATUTORY STATUTORY STATUTORY
YES GENERAL LIABILITY, INCLUDING
PERSONAL INJURY, BROAD FORM
PROPERTY DAMAGE BLANKET
CONTRACTUAL, AND FIRE LEGAL
LIABILITY
BODILY INJURY
PROPERTY DAMAGE
BODILY INJURY & PROPERTY
DAMAGE COMBINED.
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
YES AUTOMOBILE LIABILITY,
INCLUDING ALL OWNED, HIRED,
NON-OWNED
BODILY INJURY
- EACH PERSON
- EACH OCCURRENCE
PROPERTY DAMAGE
BODILY INJURY AND PROPERTY
DAMAGE, COMBINED
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
YES PROFESSIONAL LIABILITY,
INCLUDING, ERRORS AND
OMISSIONS, MALPRACTICE (WHEN
APPLICABLE), AND NEGLIGENT
PERFORMANCE
ALL DAMAGES $1,000,000
YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST
AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM
OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY
CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’
COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL
INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE:
A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR
CONSULTANT’S AGREEMENT TO INDEMNIFY CITY.
II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED
COVERAGE AT THE FOLLOWING EMAIL: PurchasingSupport@PaloAlto.Gov
III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL
INSUREDS:
A. PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED,
INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR
CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE
ADDITIONAL INSUREDS.
B. CROSS LIABILITY
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THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER
THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE
INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE
INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS
POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON
OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE
CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE
OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT
OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY
WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE
FILED WITH THE CITY OF PALO ALTO SENT TO THE FOLLOWING EMAIL:
Purchasingsupport@PaloAlto.Gov
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POLICY AND PROCEDURES 1-64/IT
Revised: December 2017
INFORMATION PRIVACY POLICY
POLICY STATEMENT
The City of Palo Alto (the “City”) strives to promote and sustain a superior quality of life
for persons in Palo Alto. In promoting the quality of life of these persons, it is the policy of the
City, consistent with the provisions of the California Public Records Act, California Government
Code §§ 6250 – 6270, to take appropriate measures to safeguard the security and privacy of the
personal (including,without limitation, financial) information of persons, collected in the
ordinary course and scope of conducting the City’s business as a local government agency.
These measures are generally observed by federal, state and local authorities and reflected in
federal and California laws, the City’s rules and regulations, and industry best practices,
including, without limitation, the provisions of California Civil Code §§ 1798.3(a), 1798.24,
1798.79.8(b), 1798.80(e), 1798.81.5, 1798.82(e), 1798.83(e)(7), and 1798.92(c). Though some
of these provisions do not apply to local government agencies like the City, the City will conduct
business in a manner which promotes the privacy of personal information, as reflected in
federal and California laws. The objective of this Policy is to describe the City’s data security
goals and objectives, to ensure the ongoing protection of the Personal Information, Personally
Identifiable Information, Protected Critical Infrastructure Information and Personally Identifying
Information of persons doing business wit the City and receiving services from the City or a
third party under contract to the City to provide services. The terms “Personal Information,”
“Protected Critical Infrastructure Information”, “Personally Identifiable Information” and
“Personally Identifying Information” (collectively, the “Information”) are defined in the
California Civil Code sections,
reference.
referred to above, and are incorporated in this Policy by
PURPOSE
The City, acting in its governmental and proprietary capacities, collects the Information
pertaining to persons who do business with or receive services from the City. The Information is
collected by a variety of means, including, without limitation, from persons applying to receive
services provided by the City, persons accessing the City’s website, and persons who access
other information portals maintained by the City’s staff and/or authorized third-party
contractors. The City is committed to protecting the privacy and security of the Information
collected by the City. The City acknowledges federal and California laws, policies, rules,
regulations and procedures, and industry best practices are dedicated to ensuring the
Information is collected, stored and utilized in compliance with applicable laws.
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The goals and objectives of the Policy are: (a) a safe, productive, and inoffensive work
environment for all users having access to the City’s applications and databases; (b) the
appropriate maintenance and security of database information assets owned by, or entrusted
to, the City; (c) the controlled access and security of the Information provided to the City’s staff
and third party contractors; and (d) faithful compliance with legal and regulatory requirements.
SCOPE
The Policy will guide the City’s staff and, indirectly, third party contractors, which are by
contract required to protect the confidentiality and privacy of the Information of the persons
whose personal information data are intended to be covered by the Policy and which will be
advised by City staff to conform their performances to the Policy should they enjoy conditional
access to that information.
CONSEQUENCES
The City’s employees shall comply with the Policy in the execution of their official duties to the
extent their work implicates access to the Information referred to in this Policy. A failure to
comply may result in employment and/or legal consequences.
EXCEPTIONS
In the event that a City employee cannot fully comply with one or more element(s) described in
this Policy, the employee may request an exception by submitting Security Exception Request.
The exception request will be reviewed and administered by the City’s Information Security
Manager (the “ISM”). The employee, with the approval of his or her supervisor, will provide
any additional information as may be requested by the ISM. The ISM will conduct a risk
assessment of the requested exception in accordance with guidelines approved by the City’s
Chief Information Officer (“CIO”) and approved as to form by the City Attorney. The Policy’s
guidelines will include at a minimum: purpose, source, collection, storage, access, retention,
usage, and protection of the Information identified in the request. The ISM will consult with the
CIO to approve or deny the exception request. After due consideration is given to the request,
the exception request disposition will be communicated, in writing, to the City employee and
his or her supervisor. The approval of any request may be subject to countermeasures
established by the CIO, acting by the ISM.
MUNICIPAL ORDINANCE
This Policy will supersede any City policy, rule, regulation or procedure regarding information
privacy.
RESPONSIBILITIES OF CITY STAFF
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A. RESPONSIBILITY OF CIO AND ISM
The CIO, acting by the ISM, will establish an information security management framework
to initiate and coordinate the implementation of information security measures by the
City’s government.
The City’s employees, in particular, software application users and database users, and,
indirectly, third party contractors under contract to the City to provide services, shall by
guided by this Policy in the performance of their job responsibilities.
The ISM will be responsible for: (a) developing and updating the Policy, (b) enforcing
compliance with and the effectiveness of the Policy; (c) the development of privacy
standards that will manifest the Policy in detailed, auditable technical requirements, which
will be designed and maintained by the persons responsible for the City’s IT environments;
(d) assisting the City’s staff in evaluating security and privacy incidents that arise in regard
to potential violations of the Policy; (e) reviewing and approving department-specific
policies and procedures which fall under the purview of this Policy; and (f) reviewing Non-
Disclosure Agreements (NDAs) signed by third party contractors, which will provide services,
including, without limitation, local or ‘cloud-based’ software services to the City.
B. RESPONSIBILITY OF INFORMATION SECURITY STEERINGCOMMITTEE
The Information Security Steering Committee (the “ISSC”), which is comprised of the City’s
employees, drawn from the various City departments, will provide the primary direction,
prioritization and approval for all information security efforts, including key information
security and privacy risks, programs, initiatives and activities. The ISSC will provide input to
the information security and privacy strategic planning processes to ensure that information
security risks are adequately considered, assessed and addressed at the appropriate City
department level.
C. RESPONSIBILITY OF USERS
All authorized users of the Information will be responsible for complying with information
privacy processes and technologies within the scope of responsibility of each user.
D. RESPONSIBILITY OF INFORMATION TECHNOLOGY (IT) MANAGERS
The City’s IT Managers, who are responsible for internal, external, direct and indirect
connections to the City’s networks, will be responsible for configuring, maintaining and
securing the City’s IT networks in compliance with the City’s information security and
privacy policies. They are also responsible for timely internal reporting of events that may
have compromised network, system or data security.
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E. RESPONSIBILITY OF AUTHORIZATION COORDINATION
The ISM will ensure that the City’s employees secure the execution of Non-Disclosure
Agreements (NDA), whenever access to the Information will be granted to third party
contractors, in conjunction with the Software as a Service (SaaS) Security and Privacy Terms
and Conditions. An NDA must be executed prior to the sharing of the Information of
persons covered by this Policy with third party contractors. The City’s approach to managing
information security and its implementation (i.e. objectives, policies, processes, and
procedures for information security) will be reviewed independently by the ISM at planned
intervals, or whenever significant changes to security implementation have occurred.
The CIO, acting by the ISM, will review and recommend changes to the Policy annually, or as
appropriate, commencing from the date of its adoption.
GENERAL PROCEDURE FOR INFORMATION PRIVACY
A. OVERVIEW
The Policy applies to activities that involve the use of the City’s information assets, namely,
the Information of persons doing business with the City or receiving services from the City,
which are owned by, or entrusted to, the City and will be made available to the City’s
employees and third party contractors under contract to the City to provide Software as a
Service consulting services. These activities include, without limitation, accessing the
Internet, using e-mail, accessing the City’s intranet or other networks, systems, or devices.
The term “information assets” also includes the personal information of the City’s
employees and any other related organizations while those assets are under the City’s
control. Security measures will be designed, implemented, and maintained to ensure that
only authorized persons will enjoy access to the information assets. The City’s staff will act
to protect its information assets from theft, damage, loss, compromise, and inappropriate
disclosure or alteration. The City will plan, design, implement and maintain information
management systems, networks and processes in order to assure the appropriate
confidentiality, integrity, and availability of its information assets to the City’s employees
and authorized third parties.
B. PERSONAL INFORMATION AND CHOICE
Except as permitted or provided by applicable laws, the City will not share the Information
of any person doing business with the City, or receiving services from the City, in violation of
this Policy, unless that person has consented to the City’s sharing of such information
during the conduct of the City’s business as a local government agency with third parties
under contract to the City to provide services.
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C. METHODS OF COLLECTION OF PERSONAL INFORMATION
The City may gather the Information from a variety of sources and resources, provided that
the collection of such information is both necessary and appropriate in order for the City to
conduct business as a local government agency in its governmental and proprietary
capacities. That information may be gathered at service windows and contact centers as
well as at web sites, by mobile applications, and with other technologies, wherever the City
may interact with persons who need to share such formation in order to secure the City’s
services.
The City’s staff will inform the persons whose Information are covered by this Policy that
the City’s web site may use “cookies” to customize the browsing experience with the City of
Palo Alto web site. The City will note that a cookie contains unique information that a web
site can use to track, among others, the Internet Protocol address of the computer used to
access the City’s web sites, the identification of the browser software and operating
systems used, the date and time a user accessed the site, and the Internet address of the
website from which the user linked to the City’s web sites. Cookies created on the user’s
computer by using the City’s web site do not contain the Information, and thus do not
compromise the user’s privacy or security. Users can refuse the cookies or delete the cookie
files from their computers by using any of the widely available methods. If the user chooses
not to accept a cookie on his or her computer, it will not prevent or prohibit the user from
gaining access to or using the City’s sites.
D. UTILITIES SERVICE
In the provision of utility services to persons located within Palo Alto, the City of Palo Alto
Utilities Department (“CPAU”) will collect the Information in order to initiate and manage
utility services to customers. To the extent the management of that information is not
specifically addressed in the Utilities Rules and Regulations or other ordinances, rules,
regulations or procedures, this Policy will apply; provided, however, any such Rules and
Regulations must conform to this Policy, unless otherwise directed or approved by the
Council. This includes the sharing of CPAU-collected Information with other City
departments except as may be required by law.
Businesses and residents with standard utility meters and/or having non-metered monthly
services will have secure access through a CPAU website to their Information, including,
without limitation, their monthly utility usage and billing data. In addition to their regular
monthly utilities billing, businesses and residents with non-standard or experimental
electric, water or natural gas meters may have their usage and/or billing data provided to
them through non-City electronic portals at different intervals than with the standard
monthly billing.
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Businesses and residents with such non-standard or experimental metering will have their
Information covered by the same privacy protections and personal information exchange
rules applicable to Information under applicable federal and California laws.
E. PUBLIC DISCLOSURE
The Information that is collected by the City in the ordinary course and scope of conducting
its business could be incorporated in a public record that may be subject to inspection and
copying by the public, unless such information is exempt from disclosure to the public by
California law.
F. ACCESS TO PERSONAL INFORMATION
The City will take reasonable steps to verify a person’s identity before the City will grant
anyone online access to that person’s Information. Each City department that collects
Information will afford access to affected persons who can review and update that
information at reasonable times.
G. SECURITY, CONFIDENTIALITY AND NON-DISCLOSURE
Except as otherwise provided by applicable law or this Policy, the City will treat the
Information of persons covered by this Policy as confidential and will not disclose it, or
permit it to be disclosed, to third parties without the express written consent of the person
affected. The City will develop and maintain reasonable controls that are designed to
protect the confidentiality and security of the Information of persons covered by thisPolicy.
The City may authorize the City’s employee and or third party contractors to access and/or
use the Information of persons who do business with the City or receive services from the
City. In those instances, the City will require the City’s employee and/or the third party
contractors to agree to use such Information only in furtherance of City-related business
and in accordance with the Policy.
If the City becomes aware of a breach, or has reasonable grounds to believe that a security
breach has occurred, with respect to the Information of a person, the City will notify the
affected person of such breach in accordance with applicable laws. The notice of breach will
include the date(s) or estimated date(s) of the known or suspected breach, the nature of
the Information that is the subject of the breach, and the proposed action to be taken or
the responsive action taken by the City.
H. DATA RETENTION / INFORMATION RETENTION
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The City will store and secure all Information for a period of time as may be required by law,
or if no period is established by law, for seven (7) years, and thereafter such information
will be scheduled for destruction.
I. SOFTWARE AS A SERVICE (SAAS) OVERSIGHT
The City may engage third party contractors and vendors to provide software application
and database services, commonly known as Software-as-a-Service (SaaS).
In order to assure the privacy and security of the Information of those who do business with
the City and those who received services from the City, as a condition of selling goods
and/or services to the City, the SaaS services provider and its subcontractors, if any,
including any IT infrastructure services provider, shall design, install, provide, and maintain
a secure IT environment, while it performs such services and/or furnishes goods to the City,
to the extent any scope of work or services implicates the confidentiality and privacy of the
Information.
These requirements include information security directives pertaining to: (a) the IT
infrastructure, by which the services are provided to the City, including connection to the
City's IT systems; (b) the SaaS services provider’s operations and maintenance processes
needed to support the IT environment, including disaster recovery and business continuity
planning; and (c) the IT infrastructure performance monitoring services to ensure a secure
and reliable environment and service availability to the City. The term “IT infrastructure”
refers to the integrated framework, including, without limitation, data centers, computers,
and database management devices, upon which digital networks operate.
Prior to entering into an agreement to provide services to the City, the City’s staff will
require the SaaS services provider to complete and submit an Information Security and
Privacy Questionnaire. In the event that the SaaS services provider reasonably determines
that it cannot fulfill the information security requirements during the course of providing
services, the City will require the SaaS services provider to promptly inform the ISM.
J. FAIR AND ACCURATE CREDIT TRANSACTION ACT OF 2003
CPAU will require utility customers to provide their Information in order for the City to
initiate and manage utility services to them.
Federal regulations, implementing the Fair and Accurate Credit Transactions Act of 2003
(Public Law 108-159), including the Red Flag Rules, require that CPAU, as a “covered
financial institution or creditor” which provides services in advance of payment and which
can affect consumer credit, develop and implement procedures for an identity theft
program for new and existing accounts to detect, prevent, respond and mitigate potential
identity theft of its customers’ Information.
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CPAU procedures for potential identity theft will be reviewed independently by the ISM
annually or whenever significant changes to security implementation have occurred. The
ISM will recommend changes to CPAU identity theft procedures, or as appropriate, so as to
conform to this Policy.
There are California laws which are applicable to identity theft; they are set forth in
California Civil Code § 1798.92.
NOTE: Questions regarding this policy should be referred to the Information Technology
Department, as appropriate.
12/5/2017
Recommended:
Director Information Technology/CIO Date
12/13/2017
Approved:
City Manager Date
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EXHIBIT “”
CYBERSECURITY TERMS AND CONDITIONS
In order to assure the privacy and security of the personal information of the City's customers and
people who do business with the City, including, without limitation, vendors, utility customers, library
patrons, and other individuals and companies, who are required to share such information with the City,
as a condition of receiving services from the City or selling goods and services to the City, including,
without limitation, the Software as a Service services provider (the "Consultant") and its subcontractors,
if any, including, without limitation, any Information Technology ("IT") infrastructure services provider,
shall design, install, provide, and maintain a secure IT environment, described below, while it renders
and performs the Services and furnishes goods, if any, described in the Statement of Work, Exhibit B,
to the extent any scope of work implicates the confidentiality and privacy of the personal information of
the City's customers. The Consultant shall fulfill the data and information security requirements (the
"Requirements") set forth in Part A below.
A "secure IT environment" includes (a) the IT infrastructure, by which the Services are provided to the
City, including connection to the City's IT systems; (b) the Consultant's operations and maintenance
processes needed to support the environment, including disaster recovery and business continuity
planning; and (c) the IT infrastructure performance monitoring services to ensure a secure and reliable
environment and service availability to the City. "IT infrastructure" refers to the integrated framework,
including, without limitation, data centers, computers, and database management devices, upon which
digital networks operate.
In the event that, after the Effective Date, the Consultant reasonably determines that it cannot fulfill the
Requirements, the Consultant shall promptly inform the City of its determination and submit, in writing,
one or more alternate countermeasure options to the Requirements (the "Alternate Requirements" as
set forth in Part B), which may be accepted or rejected in the reasonable satisfaction of the Information
Security Manager (the "ISM").
Part A. Requirements:
The Consultant shall at all times during the term of any contract between the City and the Consultant:
(a) Appoint or designate an employee, preferably an executive officer, as the security liaison to the
City with respect to the Services to be performed under this Agreement.
(b) Comply with the City's Information Privacy Policy:
(c) Have adopted and implemented information security and privacy policies that are documented,
are accessible to the City, and conform to ISO 27001/2 – Information Security Management
Systems (ISMS) Standards. See the following:
http://www.iso.org/iso/home/store/catalogue_tc/catalogue_detail.htm?csnumber=42103
http://www.iso.org/iso/iso_catalogue/catalogue_tc/catalogue_detail.htm?csnumber=50297
(d) Conduct routine data and information security compliance training of its personnel that is
appropriate to their role.
(e) Develop and maintain detailed documentation of the IT infrastructure, including software
versions and patch levels.
(f) Develop an independently verifiable process, consistent with industry standards, for performing
professional and criminal background checks of its employees that (1) would permit verification
of employees' personal identity and employment status, and (2) would enable the immediate
denial of access to the City's confidential data and information by any of its employees who no
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longer would require access to that information or who are terminated.
(g) Provide a list of IT infrastructure components in order to verify whether the Consultant has met
or has failed to meet any objective terms and conditions.
(h) Implement access accountability (identification and authentication) architecture and support
role-based access control ("RBAC") and segregation of duties ("SoD") mechanisms for all
personnel, systems, and Software used to provide the Services. "RBAC" refers to a computer
systems security approach to restricting access only to authorized users. "SoD" is an approach
that would require more than one individual to complete a security task in order to promote the
detection and prevention of fraud and errors.
(i) Assist the City in undertaking annually an assessment to assure that: (1) all elements of the
Services' environment design and deployment are known to the City, and (2) it has implemented
measures in accordance with industry best practices applicable to secure coding and secure IT
architecture.
(j) Provide and maintain secure intersystem communication paths that would ensure the
confidentiality, integrity, and availability of the City's information.
(k) Deploy and maintain IT system upgrades, patches and configurations conforming to current
patch and/or release levels by not later than one (1) week after its date of release. Emergency
security patches must be installed within 24 hours after its date of release.
(l) Provide for the timely detection of, response to, and the reporting of security incidents, including
on-going incident monitoring with logging.
(m) Notify the City within one (1) hour of detecting a security incident that results in the unauthorized
access to or the misuse of the City's confidential data and information.
(n) Inform the City that any third party service provider(s) meet(s) all of the Requirements.
(o)Perform security self-audits on a regular basis and not less frequently than on a quarterly basis,
and provide the required summary reports of those self-audits to the ISM on the annual
anniversary date or any other date agreed to by the Parties.
(p) Accommodate, as practicable, and upon reasonable prior notice by the City, the City's
performance of random site security audits at the Consultant's site(s), including the site(s) of a
third-party service provider(s), as applicable. The scope of these audits will extend to the
Consultant's and its third-party service provider(s)' awareness of security policies and practices,
systems configurations, access authentication and authorization, and incident detection and
response.
(q)Cooperate with the City to ensure that to the extent required by applicable laws, rules and
regulations, and the Confidential Information will be accessible only by the Consultant and any
authorized third-party service provider's personnel.
(r) Perform regular, reliable secured backups of all data needed to maximize the availability of the
Services. Adequately encrypt the City of Palo Alto's data, during the operational process, hosted
at rest, and the backup stage at the Vendors' environment (including Vendor's contracting
organization's environment).
(s) Maintain records relating to the Services for a period of three (3) years after the expiration or
earlier termination of this Agreement and in a mutually agreeable storage medium. Within thirty
(30) days after the effective date of expiration or earlier termination of this Agreement, all of
those records relating to the performance of the Services shall be provided to the ISM.
(t)Maintain the Confidential Information in accordance with applicable federal, state, and local data
and information privacy laws, rules, and regulations.
(u) Encrypt the Confidential Information before delivering the same by electronic mail to the City
and or any authorized recipient.
(v) Provide Network Layer IP filtering services to allow access only from the City of Palo Alto's IP
address to the Vendor environment (primarily hosted for the City of Palo Alto).
(w) Offer a robust disaster recovery and business continuity (DR-BCP) solutions to the City for the
systems and services the Vendor provides to the City.
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(x) Provide and support Single Sign-on (SSO) and Multifactor Authentication (MFA) solutions for
authentication and authorization services from the "City's environment to the Vendor's
environment," and Vendor's environment to the Vendor's cloud services/hosted environment."
The Vendor shall allow two employees of the City to have superuser and super-admin access
to the Vendor's IT environment, and a cloud-hosted IT environment belongs to the City.
(y) Unless otherwise addressed in the Agreement, shall not hold the City liable for any direct,
indirect or punitive damages whatsoever including, without limitation, damages for loss of use,
data or profits, arising out of or in any way connected with the City's IT environment, including,
without limitation, IT infrastructure communications.
(z) The Vendor must provide evidence of valid cyber liability insurance policy per the City’s
EXHIBIT “D” INSURANCE REQUIREMENTS.
Part B. Alternate Requirements:
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Certificate Of Completion
Envelope Id: D7F22902-8004-40EB-ADEC-109E77F30979 Status: Completed
Subject: Complete with Docusign: C26195690 Cat 3 contract final combined.pdf
Source Envelope:
Document Pages: 34 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: 2601:205:4a80:e
Record Tracking
Status: Original
5/5/2026 2:03:59 PM
Holder: Ann Marie Romero
annmarie.romero@paloalto.gov
Location: DocuSign
Security Appliance Status: Connected Pool: StateLocal
Signer Events Signature Timestamp
Doug Davenport
doug.davenport@prospectsv.org
Executive Director
Douglas Davenport, Executive Director
Security Level: Email, Account Authentication
(None)
Signature Adoption: Drawn on Device
Using IP Address:
2001:5a8:465e:8b00:fc1f:a4a3:4a63:2ae2
Sent: 5/5/2026 2:06:21 PM
Viewed: 5/5/2026 2:20:08 PM
Signed: 5/5/2026 2:20:52 PM
Electronic Record and Signature Disclosure:
Not Offered via Docusign
Ann Togasaki
Ann.Togasaki@prospectsv.org
Director of Operations
Security Level: Email, Account Authentication
(None)Signature Adoption: Pre-selected Style
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Sent: 5/5/2026 2:20:55 PM
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Signed: 5/5/2026 2:24:19 PM
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In Person Signer Events Signature Timestamp
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Christine Tam
christine.tam@paloalto.gov
Senior Resources Planner
COPA
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(None)
Sent: 5/5/2026 2:24:21 PM
Electronic Record and Signature Disclosure:
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Silicon Valley
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Envelope Summary Events Status Timestamps
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Signing Complete Security Checked 5/5/2026 2:24:19 PM
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Payment Events Status Timestamps
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: IT Department
Meeting Date: June 1, 2026
Report #:2603-6085
TITLE
Approval of Professional Services Contract Number C27197243 with Euna Solutions, Utilizing a
TIPS Cooperative Contract, to Modernize the City’s Budget Development and Publishing
Software for a Five-Year Term, with Two One-Year Optional Extensions for a Total Not-to-
Exceed Amount of $1,322,230. CEQA Status - Not a project.
RECOMMENDATION
Staff recommends that City Council approve and authorize the City Manager or their designee
execute Contract C27197243 with Euna Solutions, utilizing the above-noted TIPS Cooperative
Contract Number 230105, to upgrade the City’s budget development software, replace the
publishing software, and streamline the budget process for a five-year term (July 1, 2026 to
June 30, 2031 and approve up to two, one-year optional extensions (July 1, 2031 to June 30,
2033) for a total not-to-exceed amount of $1,322,230 (Attachment A).
BACKGROUND
To facilitate budget creation, advanced forecasting and analysis, and budget publication, the
City uses two software solutions: Questica (budget creation and forecasting) and PADS
(publication). Both products are owned and provided by Euna Solutions through a TIPS
Cooperative Contract.
The City has used Questica as its enterprise budgeting system since June 23, 2014, following a
competitive procurement process1. Since then, the City Council has approved several
amendments to maintain and support the budgeting system:
Dec. 8, 2014 – Council approved Amendment No. 1, increasing total compensation and
extending services for a five-year term2.
1 June 23, 2014 City Council Staff Report: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-
reports/reports/city-manager-reports-cmrs/year-archive/2014/4516.pdf
2 December 8, 2014 City Council Staff Report: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-
minutes-reports/reports/city-manager-reports-cmrs/year-archive/2014/4516.pdf
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Sept. 23, 2019 – Council approved Amendment No. 2, extending the contract term
through June 30, 2024, and increasing total compensation5.
June 3, 2024 – Council approved Amendment No. 3, extending the contract through
June 30, 2026, and increasing the total not-to-exceed amount to $1,227,6586.
In addition to Questica, the City uses PADS to compile financial data, narrative text, and
graphics to create the City’s budget publications7. The system helps maintain a consistent,
professional, and visually appealing format.
The City first selected PADS through a competitive procurement process and has continued
using the system through later contracts and amendments:
Dec. 16, 2013 – Council approved Contract C14151788 for PADS, replacing the legacy
budget publishing software that was no longer supported8.
April 25, 2016 – Council approved Amendment No. 1, extending the term through June
30, 2019, and increasing the total not-to-exceed compensation to $363,5559.
July 1, 2019 – The City later entered Contract No. S20175881 with Finite Matters for
hosting, maintenance, and licensing services supporting PADS. Amendment No. 1
extended the contract term through June 30, 2022, and established a maximum not-to-
exceed compensation of $73,353.
Nov. 8, 2022 – The City transitioned to a SaaS service model through Contract No.
S23183412. The City later amended the contract to extend the term through June 30,
2026, and increase the total not-to-exceed compensation to $120,174.
ANALYSIS
After comprehensive assessment of the City’s budget development and publishing
requirements, staff determined that upgrading to Euna Solutions’ modern budgeting suite,
including their Euna Budget Pro and Euna Budget Book Studio products, is the most fiscally and
operationally advantageous path.
The scope of the assessment included:
Rigorous needs discovery, documenting existing and future needs. Staff conducted a
35-hour requirements gathering process, interviewing 26 budget analysts across various
departments.
5 September 23, 2019 City Council Staff Report: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-
minutes-reports/reports/city-manager-reports-cmrs/year-archive/2019/id-10618.pdf?t=59683.91
6 June 3, 2024 City Council Staff Report, Agenda Item No. 5:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=14299
7 FY 2026 Adopted Operating Budget: https://www.paloalto.gov/files/assets/public/v/1/administrative-
services/city-budgets/fy-2026-city-budget/adopted/fy-2026-adopted-operating-budget_final.pdf
8 December 16, 2023 City Council Staff Report: https://www.paloalto.gov/files/assets/public/v/1/agendas-
minutes-reports/reports/city-manager-reports-cmrs/year-archive/2013/13-4312.pdf
9 April 25, 2016 City Council Staff Report: https://www.paloalto.gov/files/assets/public/v/1/agendas-minutes-
reports/reports/city-manager-reports-cmrs/year-archive/2016/6832.pdf
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Legacy system replacement: A primary objective was replacing the legacy PADS
publishing system, which requires manual data compilation, with a modern, automated
platform integrated with the City's financial core.
Market analysis and comparing what other Bay Area city agencies are using.
Multi-stage competitive evaluation: A multi-department evaluation panel evaluated
five industry-leading vendors: Anaplan, ClearGov, Euna Solutions, Gravity, and OpenGov.
The evaluation followed a structured three-round process:
o First Round: Five firms participated in three-and-a-half-hour demonstration
sessions focused on core functionality and requirements matrix responses.
o Second Round: The field was narrowed to three firms for three-hour deep-dive
sessions regarding technical architecture and reporting.
o Third Round: Staff held targeted discussions with Euna Solutions to validate
system integration capabilities and finalize the implementation roadmap.
Strategic justification for selection
Operational Continuity: While other platforms were assessed, none significantly
outperformed Euna Solutions enough to justify the high transition costs, retraining
efforts for Citywide staff, and the operational risk of migrating the City’s complex fund
structures and workflows to a completely new environment.
System Enhancements: The new contract facilitates advanced forecasting, improved
SAP data integration, and greater public transparency by using Euna Budget Book Studio
to publish budget information in a modern, public-facing digital format.
Procurement Efficiency: Staff utilized the TIPS-USA Contract #23010515 cooperative
vehicle, which provided a pre-negotiated competitive framework. Furthermore, City
staff successfully negotiated pricing below these cooperative sheet rates and initial
quotes, securing $167,227.40 in savings for the City over the proposed 7-year term.
FISCAL/RESOURCE IMPACT
The total contract value for the initial five-year term is $968,408. This total includes $880,371
for professional services and recurring annual maintenance fees, as well as $88,037 reserved
for additional services. Should the City exercise the two optional one-year extensions, the total
potential contract value is an amount not to exceed $1,322,230.
Funding for this contract will be incorporated into the FY 2027 annual budget development
process, subject to City Council approval and consistent with how multiyear technology
contracts are funded in future years. As the Information Technology Department (ITD) is
supported through an internal service fund model, these costs are distributed across City
15 Cooperative Technology Solutions Products and Services Contract: https://www.tips-
usa.com/vendorProfile.cfm?RecordID=AB4A9AB026430832481F3CF7167BDE6C
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departments. Approximately 49% of the costs are funded by the General Fund, while the
remaining 51% are supported by enterprise and special revenue funds.
Year 1 07/2026 - 06/30/2027 $223,839 $20,000
Year 2 07/2027 - 06/30/2028 $160,772 $17,009
Year 3 07/2028 - 06/30/2029 $160,772 $17,009
Year 4 07/2029 - 06/30/2030 $165,209 $17,009
Year 5 07/2030 - 06/30/2031 $169,779 $17,009
Optional Year 6 07/2031 - 06/30/2032 $174,487 $0
Optional Year 7 07/2032 - 06/30/2033 $179,335 $0
Staff coordinated this effort with internal City stakeholders to ensure the recommended
solution reflects Citywide operational needs. The evaluation work and requirements
development included participation from the Office of Management and Budget, ITD, and other
departmental budget staff.
Staff also engaged vendors throughout the assessment process to validate technical
capabilities, implementation considerations, and options to improve system integration,
reporting, training, and public-facing budget publishing/transparency, which informed the
recommended scope and implementation approach.
The approval of this contract is not a project under the California Environmental Quality Act
(CEQA) under CEQA Guidelines section 15378(b)(2), (4) and (5).
Attachment A: EUNA Solutions, Contract C27197243
:
Darren Numoto, Chief Information Officer; Lisa Bolger, Assistant Director Information
Technology/CTO
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Professional Services
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CITY OF PALO ALTO CONTRACT NO. C27197243
AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF PALO ALTO AND EUNA SOLUTIONS, INC.
This Agreement for Professional Services (this “Agreement”) is entered into as of the 1st day of
July, 2026 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California
chartered municipal corporation (“CITY”), and EUNA SOLUTIONS, INC., a Delaware
Corporation, located at 1155 Perimeter Center West, Suite 500, Sandy Springs, CA, 30338
(“CONSULTANT”).
The following recitals are a substantive portion of this Agreement and are fully incorporated herein
by this reference:
RECITALS
A. CITY intends to modernize its budget and publishing software (the “Project”) and desires
to engage a consultant to upgrade to Euna Budget Pro, implement OpenBook & Budget Book,
develop new integrations with SAP, perform a business process review, and improve its reporting
capabilities in connection with the Project (the “Services”, as detailed more fully in Exhibit A).
B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the
necessary professional expertise, qualifications, and capability, and all required licenses and/or
certifications to provide the Services.
C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide
the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this
Agreement, the parties agree as follows:
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described
in Exhibit A in accordance with the terms and conditions contained in this Agreement. The
performance of all Services shall be to the reasonable satisfaction of CITY.
SECTION 2. TERM.
The term of this Agreement shall be from July 1, 2026, through June 30, 2031 with Two One-Year
Optional Extensions until June 30, 2033 unless terminated earlier pursuant to Section 19
(Termination) of this Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance
of Services under this Agreement. CONSULTANT shall complete the Services within the term of
this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE
OF PERFORMANCE”. Any Services for which times for performance are not specified in this
Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and
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timely manner based upon the circumstances and direction communicated to the CONSULTANT.
CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery
of damages for delay if the extension is required due to the fault of CONSULTANT.
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 ONE MILLION TWO
HUNDRED THIRTY-FOUR THOUSAND ONE HUNDRED NINETY-THREE Dollars
($1,234,193). 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.
Optional Additional Services Provision (This provision applies only if checked and a
not-to-exceed compensation amount for Additional Services is allocated below under this
Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not-
to-exceed compensation amount of EIGHTY-EIGHT THOUSAND THIRTY-SEVEN
Dollars ($88,037) for the performance of Additional Services (as defined below). The
total compensation for performance of the Services, Additional Services and any
reimbursable expenses specified in Exhibit C, shall not exceed ONE MILLION THREE
HUNDRED TWENTY-TWO THOUSAND TWO HUNDRED THIRTY Dollars
($1,322,230), as detailed in Exhibit C.
“Additional Services” means any work that is determined by CITY to be necessary for the
proper completion of the Project, but which is not included within the Scope of Services
described at Exhibit A. CITY may elect to, but is not required to, authorize Additional
Services up to the maximum amount of compensation set forth for Additional Services in
this Section 4. CONSULTANT shall provide Additional Services only by advanced,
written authorization from CITY as detailed in this Section. Additional Services, if any,
shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project
Manager, as identified in Section 13 (Project Management). Each Task Order shall be in
substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK
ORDER”. Each Task Order shall contain a specific scope of services, schedule of
performance and maximum compensation amount, in accordance with the provisions of
this Agreement. Compensation for Additional Services shall be specified by CITY in the
Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit
C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s
Project Manager within the time specified by the Project Manager, and upon authorization
by CITY (defined as counter-signature by the CITY Project Manager), the fully executed
Task Order shall become part of this Agreement. The cumulative total compensation to
CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the
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amount of compensation set forth for Additional Services in this Section 4.
CONSULTANT shall only be compensated for Additional Services performed under an
authorized Task Order and only up to the maximum amount of compensation set forth for
Additional Services in this Section 4. Performance of and payment for any Additional
Services are subject to all requirements and restrictions in this Agreement.
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly
invoices to the CITY describing the Services performed and the applicable charges (including, if
applicable, an identification of personnel who performed the Services, hours worked, hourly rates,
and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule
of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of
completion of each task. The information in CONSULTANT’s invoices shall be subject to
verification by CITY. CONSULTANT shall send all invoices to itinvoices@PaloAlto.gov. CITY
will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed
by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it,
its employees and subcontractors, if any, possess the professional and technical personnel
necessary to perform the Services required by this Agreement and that the personnel have
sufficient skill and experience to perform the Services assigned to them. CONSULTANT
represents that it, its employees and subcontractors, if any, have and shall maintain during the term
of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature
that are legally required to perform the Services. All Services to be furnished by CONSULTANT
under this Agreement shall meet the professional standard and quality that prevail among
professionals in the same discipline and of similar knowledge and skill engaged in related work
throughout California under the same or similar circumstances.
SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of
and in compliance with all federal, state and local laws, ordinances, regulations, and orders that
may affect in any manner the Project or the performance of the Services or those engaged to
perform Services under this Agreement, as amended from time to time. CONSULTANT shall
procure all permits and licenses, pay all charges and fees, and give all notices required by law in
the performance of the Services.
SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs,
including, but not limited to, increases in the cost of Services, arising from or caused by
CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such
errors and omissions, any change order markup costs, or costs arising from delay caused by the
errors and omissions or unreasonable delay in correcting the errors and omissions.
SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works
project, CONSULTANT shall submit estimates of probable construction costs at each phase of
design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s
stated construction budget by ten percent (10%) or more, CONSULTANT shall make
recommendations to CITY for aligning the Project design with the budget, incorporate CITY
approved recommendations, and revise the design to meet the Project budget, at no additional cost
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to CITY.
SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees
that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be
deemed at all times to be an independent contractor and shall be wholly responsible for the manner
in which CONSULTANT performs the Services requested by CITY under this Agreement.
CONSULTANT and any agent or employee of CONSULTANT will not have employee status
with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY
pertaining to or in connection with any retirement, health or other benefits that CITY may offer its
employees. CONSULTANT will be responsible for all obligations and payments, whether
imposed by federal, state or local law, including, but not limited to, FICA, income tax
withholdings, workers’ compensation, unemployment compensation, insurance, and other similar
responsibilities related to CONSULTANT’s performance of the Services, or any agent or
employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as
creating an employment or agency relationship between CITY and CONSULTANT or any agent
or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY
shall be construed as providing for direction as to policy and the result of CONSULTANT’s
provision of the Services only, and not as to the means by which such a result is obtained.
SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of
CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign
or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s
obligations hereunder without the prior written approval of the City Manager. Any purported
assignment made without the prior written approval of the City Manager will be void and without
effect. Notwithstanding the foregoing, CONSULTANT may assign this Agreement and any of its
rights or delegate any of its obligations to any affiliate, subsidiary, or to any person acquiring all
or substantially all of CONSULTANT’s assets without CITY’s consent but CONSULTANT shall
provide notice to CITY and agrees that assignee shall assume all obligations under this Agreement.
Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will
apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties.
SECTION 12. SUBCONTRACTING.
Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the
Services to be performed under this Agreement without the prior written authorization of the City
Manager or designee. In the event CONSULTANT does subcontract any portion of the work to
be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and
omissions of subcontractors.
CONSULTANT shall be responsible for directing the work of any subcontractors and for any
compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning
compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts
and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with
the prior written approval of the City Manager or designee.
SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Mack Unyi Email:
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Mackenzie.Unyi@eunasolutions.com as the CONSULTANT’s Project Manager to have
supervisory responsibility for the performance, progress, and execution of the Services and
represent CONSULTANT during the day-to-day performance of the Services. If circumstances
cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s
key personnel for any reason, the appointment of a substitute Project Manager and the assignment
of any key new or replacement personnel will be subject to the prior written approval of the CITY’s
Project Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT
personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative,
or present a threat to the adequate or timely completion of the Services or a threat to the safety of
persons or property.
CITY’s IT Project Manager is Andrew Raj, Information Technology Department, Project
Management Office, 250 Hamilton Ave, Palo Alto, CA, zipcode: 94301, Email:
Andrew.Raj@paloalto.gov CITY’s OMB Project Manager is Robert Valentukonis,
Administrative Services Department, Office of Management and Budget, 250 Hamilton Ave, Palo
Alto, CA, zipcode 94301, Email: Robert.Valentukonis@paloalto.gov. CITY’s Project Managers
will be CONSULTANT’s point of contacts with respect to performance, progress and execution
of the Services. CITY may designate an alternate Project Manager from time to time.
SECTION 14. OWNERSHIP OF MATERIALS. Deliverables. All Intellectual Property Rights
in and to the Deliverables except for any Confidential Information of CITY shall be owned by
CONSULTANT. CONSULTANT hereby grants CITY a license to use all Intellectual Property
Rights in the Deliverables free of additional charge and on a non-exclusive, worldwide, non-
transferable, non-sublicensable, fully paid-up, royalty-free and perpetual basis to the extent
necessary to enable CITY to make reasonable use of the Deliverables and the Professional
Services.
SAAS IP and Documentation. CITY acknowledges that, as between CITY and CONSULTANT,
CONSULTANT owns all right, title, and interest, including all Intellectual Property Rights, in and
to the SAAS IP and Documentation and, with respect to Third-Party Products, the applicable third-
party providers own all right, title, and interest, including all Intellectual Property Rights, in and
to the Third-Party Products.
SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized
representatives to audit, at any reasonable time during the term of this Agreement and for two (2)
years from the date of final payment, unless longer as required by law, CONSULTANT’s records
pertaining to matters covered by this Agreement, including without limitation records
demonstrating compliance with the requirements of Section 10 (Independent Contractor).
CONSULTANT further agrees to maintain and retain accurate books and records in accordance
with generally accepted accounting principles for at least two (2) years after the expiration or
earlier termination of this Agreement or the completion of any audit hereunder, whichever is later.
SECTION 16. INDEMNITY.
16.1. CONSULTANT shall indemnify, defend, and hold harmless CITY and its
agents, officers, directors and employees (“CITY Parties”) from and against any and all losses,
damages, liabilities, costs, including reasonable attorneys’ fees (”Losses”) incurred by CITY
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Parties resulting from any third-party claim, suit, action or proceeding (”Third Party Claim”) that
the SaaS, Software or Hardware, or any use of the SaaS, Software or Hardware in accordance with
this Agreement, infringes or misappropriates such third party’s intellectual property rights or for
any Third Party Claim based on CONSULTANT’s negligence or willful misconduct.
16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to
require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active
negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of,
or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its
officers, employees, agents or contractors under this Agreement.
16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not
operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive
the expiration or early termination of this Agreement.
SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under
this Agreement is effective unless it is in writing in accordance with Section 29.4 of this
Agreement. No delay or failure to require performance of any provision of this Agreement shall
constitute a waiver of that provision as to that or any other instance. Any waiver granted shall
apply solely to the specific instance expressly stated. No single or partial exercise of any right or
remedy will preclude any other or further exercise of any right or remedy.
SECTION 18. INSURANCE.
18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in
full force and effect during the term of this Agreement, the insurance coverage described in Exhibit
D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall
obtain a policy endorsement naming CITY as an additional insured under any general liability or
automobile policy or policies.
18.2. All insurance coverage required hereunder shall be provided through
carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or
authorized to transact insurance business in the State of California. Any and all contractors of
CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in
full force and effect during the term of this Agreement, identical insurance coverage, naming CITY
as an additional insured under such policies as required above.
18.3. Certificates evidencing such insurance shall be filed with CITY
concurrently with the execution of this Agreement. The certificates will be subject to the approval
of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary
coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except
after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation
or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30)
days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written
notice of the cancellation or modification within two (2) business days of the CONSULTANT’s
receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates
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evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term
of this Agreement.
18.4. The procuring of such required policy or policies of insurance will not be
construed to limit CONSULTANT’s liability hereunder nor to fulfill the indemnification
provisions of this Agreement. Notwithstanding the policy or policies of insurance,
CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss
caused by or directly arising as a result of the Services performed under this Agreement, including
such damage, injury, or loss arising after the Agreement is terminated or the term has expired.
SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The City Manager may suspend the performance of the Services, in whole
or in part, or terminate this Agreement, with or without cause, by giving thirty (30) days prior
written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material
obligations under this Agreement, in addition to all other remedies provided under this Agreement
or at law, the City Manager may terminate this Agreement sooner upon written notice of
termination. Upon receipt of any notice of suspension or termination, CONSULTANT will
discontinue its performance of the Services on the effective date in the notice of suspension or
termination.
In addition to any other express termination right set forth in this Agreement:
i. either Party may terminate this Agreement, effective on written notice to the other
Party, if the other Party materially breaches this Agreement, and such breach: (A) is
incapable of cure; or (B) being capable of cure, remains uncured thirty (30) days after
the non-breaching Party provides the breaching Party with written notice of such
breach; or
ii. either Party may terminate this Agreement, effective immediately upon written notice
to the other Party, if the other Party: (A) becomes insolvent or is generally unable to
pay, or fails to pay, its debts as they become due; (B) files or has filed against it, a
petition for voluntary or involuntary bankruptcy or otherwise becomes subject,
voluntarily or involuntarily, to any proceeding under any domestic or foreign
bankruptcy or insolvency Law; (C) makes or seeks to make a general assignment for
the benefit of its creditors; or (D) applies for or has appointed a receiver, trustee,
custodian, or similar agent appointed by order of any court of competent jurisdiction
to take charge of or sell any material portion of its property or business.
19.2. In event of suspension or termination, CONSULTANT will deliver to the
City Manager on or before the effective date in the notice of suspension or termination, any and
all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed,
prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such
work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).
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19.3. In event of suspension or termination, CONSULTANT will be paid for the
Services rendered and work products delivered to CITY in accordance with the Scope of Services
up to the effective date in the notice of suspension or termination; provided, however, if this
Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be
obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services
provided in material conformity with this Agreement as such determination is made by the City
Manager acting in the reasonable exercise of his/her discretion. The following Sections will
survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25,
27, 28, 29 and 30.
19.4. No payment, partial payment, acceptance, or partial acceptance by CITY
will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made
in accordance with Section 17 (Waivers).
SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by
certified mail, addressed as follows:
To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250
Palo Alto, CA 94303
With a copy to the Purchasing Manager
To CONSULTANT: Attention of the Project Manager at the address of
CONSULTANT recited on the first page of this Agreement.
CONSULTANT shall provide written notice to CITY of any change of address.
SECTION 21. CONFLICT OF INTEREST.
21.1. In executing this Agreement, CONSULTANT covenants that it presently
has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which
would conflict in any manner or degree with the performance of the Services.
21.2. CONSULTANT further covenants that, in the performance of this
Agreement, it will not employ subcontractors or other persons or parties having such an interest.
CONSULTANT certifies that no person who has or will have any financial interest under this
Agreement is an officer or employee of CITY; this provision will be interpreted in accordance
with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the
State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any
conflict arises.
21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by
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the Regulations of the Fair Political Practices Commission, CONSULTANT will file the
appropriate financial disclosure documents required by the Palo Alto Municipal Code and the
Political Reform Act of 1974, as amended from time to time.
SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA.
22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended
from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not
discriminate in the employment of any person due to that person’s race, skin color, gender, gender
identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic
information or condition, housing status, marital status, familial status, weight or height of such
person. CONSULTANT acknowledges that it has read and understands the provisions of Section
2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the
penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining
to nondiscrimination in employment.
22.2. CONSULTANT understands and agrees that pursuant to the Americans
Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to
the public, whether directly or through a contractor or subcontractor, are required to be accessible
to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a
manner that complies with the ADA and any other applicable federal, state and local disability
rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate
against persons with disabilities in the provision of services, benefits or activities provided under
this Agreement.
SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO
WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally
Preferred Purchasing policies which are available at CITY’s Purchasing Department, hereby
incorporated by reference and as amended from time to time. CONSULTANT shall comply with
waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero
Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and,
third, recycling or composting waste. In particular, CONSULTANT shall comply with the
following Zero Waste requirements:
(a) All printed materials provided by CONSULTANT to CITY generated from a
personal computer and printer including but not limited to, proposals, quotes, invoices, reports,
and public education materials, shall be double-sided and printed on a minimum of 30% or greater
post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any
submitted materials printed by a professional printing company shall be a minimum of 30% or
greater post-consumer material and printed with vegetable-based inks.
(b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in
accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended
Producer Responsibility requirements for products and packaging. A copy of this policy is on file
at the Purchasing Department’s office.
(c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no
additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from
the facility accepting the pallets to verify that pallets are not being disposed.
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SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE.
CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62
(Citywide Minimum Wage), as amended from time to time. In particular, for any employee
otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a
calendar week within the geographic boundaries of the City, CONSULTANT shall pay such
employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030
for each hour worked within the geographic boundaries of the City of Palo Alto. In addition,
CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in
accordance with Palo Alto Municipal Code Section 4.62.060.
SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of
the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to
time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the
event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal
year in the event that funds are only appropriated for a portion of the fiscal year and funds for this
Agreement are no longer available. This Section shall take precedence in the event of a conflict
with any other covenant, term, condition, or provision of this Agreement.
SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC
WORKS CONTRACTS.
26.1. This Project is not subject to prevailing wages and related
requirements. CONSULTANT is not required to pay prevailing wages and meet related
requirements under the California Labor Code and California Code of Regulations in the
performance and implementation of the Project if the contract:
(1) is not a public works contract;
(2) is for a public works construction project of $25,000 or less, per California
Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or
(3) is for a public works alteration, demolition, repair, or maintenance project of
$15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and
1773.3(j).
SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For
purposes of this Section 27, a “9204 Public Works Project” means the erection, construction,
alteration, repair, or improvement of any public structure, building, road, or other public
improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code
Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in
Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”.
This Project is not a 9204 Public Works Project.
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SECTION 28. CONFIDENTIAL INFORMATION.
28.1. In the performance of this Agreement, CONSULTANT may have access to
CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential
Information in strict confidence, not disclose it to any third party, and will use it only for the
performance of its obligations to CITY under this Agreement and for no other purpose.
CONSULTANT will maintain reasonable and appropriate administrative, technical and physical
safeguards to ensure the security, confidentiality and integrity of the Confidential Information.
Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its
employees, agents and subcontractors, if any, to the extent they have a need to know in order to
perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose,
provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality
and security obligations of this Agreement.
28.2. “Confidential Information” means all data, information (including without
limitation “Personal Information” about a California resident as defined in Civil Code Section
1798 et seq., as amended from time to time) and materials, in any form or media, tangible or
intangible, provided or otherwise made available to CONSULTANT by CITY, directly or
indirectly, pursuant to this Agreement. Confidential Information excludes information that
CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it
was provided or has subsequently become publicly known other than by a breach of this
Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of
confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by
CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is
independently developed by employees of CONSULTANT without any use of or access to the
Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an
authorized representative of CITY.
28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential
Information to the extent required by order of a court of competent jurisdiction or governmental
body, provided that CONSULTANT will notify CITY in writing of such order immediately upon
receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing
so), to give CITY an opportunity to oppose or otherwise respond to such order.
28.4. CONSULTANT will notify City promptly upon learning of any breach in
the security of its systems or unauthorized disclosure of, or access to, Confidential Information in
its possession or control, and if such Confidential Information consists of Personal Information,
CONSULTANT will provide information to CITY sufficient to meet the notice requirements of
Civil Code Section 1798 et seq., as applicable, as amended from time to time.
28.5. Prior to or upon termination or expiration of this Agreement,
CONSULTANT will honor any request from the CITY to return or securely destroy all copies of
Confidential Information. All Confidential Information is and will remain the property of the CITY
and nothing contained in this Agreement grants or confers any rights to such Confidential
Information on CONSULTANT.
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28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the
terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions.
SECTION 29. MISCELLANEOUS PROVISIONS.
29.1. This Agreement will be governed by California law, without regard to its
conflict of law provisions.
29.2. In the event that an action is brought, the parties agree that trial of such
action will be vested exclusively in the state courts of California in the County of Santa Clara,
State of California.
29.3. The prevailing party in any action brought to enforce the provisions of this
Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that
action. The prevailing party shall be entitled to recover an amount equal to the fair market value
of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third
parties.
29.4. This Agreement, including all exhibits, constitutes the entire and integrated
agreement between the parties with respect to the subject matter of this Agreement, and supersedes
all prior agreements, negotiations, representations, statements and undertakings, either oral or
written. This Agreement may be amended only by a written instrument, which is signed by the
authorized representatives of the parties and approved as required under Palo Alto Municipal
Code, as amended from time to time.
29.5. If a court of competent jurisdiction finds or rules that any provision of this
Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in
full force and effect.
29.6. In the event of a conflict between the terms of this Agreement and the
exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall
control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if
any), the exhibits shall control.
29.7. The provisions of all checked boxes in this Agreement shall apply to this
Agreement; the provisions of any unchecked boxes shall not apply to this Agreement.
29.8. All section headings contained in this Agreement are for convenience and
reference only and are not intended to define or limit the scope of any provision of this Agreement.
29.9. This Agreement may be signed in multiple counterparts, which, when
executed by the authorized representatives of the parties, shall together constitute a single binding
agreement.
SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is
selected below, is hereby attached and incorporated into this Agreement by reference as though
fully set forth herein:
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EXHIBIT A: SCOPE OF SERVICES
EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER
EXHIBIT B: SCHEDULE OF PERFORMANCE
EXHIBIT C: COMPENSATION
EXHIBIT C-1: SCHEDULE OF RATES
EXHIBIT D: INSURANCE REQUIREMENTS
EXHIBIT E: INFORMATION PRIVACY POLICY
EXHIBIT F: CYBERSECURITY TERMS AND CONDITIONS
EXHIBIT G: CONSULTANT END USER LICENSE AGREEMENT
THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS
ARE ATTACHED.
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CONTRACT No. C27197243
SIGNATURE PAGE
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives
executed this Agreement as of the date first above written.
CITY OF PALO ALTO
____________________________
City Manager
APPROVED AS TO FORM:
__________________________
City Attorney or designee
EUNA SOLUTIONS, INC.
Officer 1
By: ________________________________
Name: ______________________________
Title: _______________________________
Officer 2
By: ________________________________
Name: ______________________________
Title: _______________________________
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Melissa McCabe
Chief Sales Officer
Rob Crocker
Chief Financial Officer
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EXHIBIT A
SCOPE OF SERVICES
CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF
SERVICES”. Notwithstanding any provision herein to the contrary, CONSULTANT’s duties and
services described in this Scope of Services shall not include preparing or assisting CITY with any
portion of CITY’s preparation of a request for proposals, request for qualifications, or any other
solicitation regarding a subsequent or additional contract with CITY. CITY shall at all times retain
responsibility for public contracting, including with respect to any subsequent phase of this project.
CONSULTANT’s participation in the planning, discussions, or drawing of project plans or
specifications shall be limited to conceptual, preliminary, or initial plans or specifications.
CONSULTANT shall cooperate with CITY to ensure that all bidders for a subsequent contract on
any subsequent phase of this project have access to the same information, including all conceptual,
preliminary, or initial plans or specifications prepared by CONSULTANT pursuant to this Scope
of Services.
In the Scope of Services tables, entries in the column headed “Scope of Services” are defined as
follows:
In scope undertaken by CONSULTANT, with such help from the CITY
as detailed in the item description. There may be additional
CITY task undertaken by CONSULTANT, but will be undertaken by the CITY, with such help from CONSULTANT as is detailed in the
item description. There may be additional information
Not in scope undertaken by CONSULANT, nor will it be undertaken by CITY
Shared Task
undertaken by both CONSULTANT and CITY as detailed in
item description. CITY and CONSULTANT will determine how to share the responsibility for the task in a way that respects the
Budget Book Studio Guided Implementation
CITY will be responsible for creating the Views in Euna Budget and using the training content
provided to guide through configuring the layout and content of that data in each Digital
Budget Book you build. CONSULTANT’s assistance in this shall be delivered remote over a
period not exceeding 8 weeks and a total of 40 hours. Where the source system is not Euna
Budget, CITY is responsible for providing clean well-organized data in CSV files for upload.
CITY will need to provide CONSULTANT with a well formatted sample of the intended
budget book in order to provide recommendations for how to recreate that sample in Budget
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Book Studio.
Description
Budget Book
Analysis
Budget Book. This will be used to inform
recommendations on configuration changes needed to
the Euna Budget data model to accommodate the budget
book layout. This will also be used to make
recommendations for the creation of Views within Euna
Budget, in order to pull the data identified in the sample
into Budget Book Studio for a report or section of a
report within the sample budget book. This will also be
used to provide suggestion how to ideally use the native
Budget Book Studio functionality in order to produce a
In Scope
Review of
Account
Structure Data
Model
existing data model in Euna Budget Pro in order to
determine how recommended configuration changes will
need to be made to accommodate the sample budget
In Scope
Account Structure
Configuration
Changes
Within Euna Budget Pro, an existing account string
should already be set for data elements such as:
• Division/Department hierarchy;
• Fund Categories and Funds;
• Account Categories and Expense and Revenue GL
Accounts
• Statistical Account Categories and Statistical Accounts
• Other Chart of Account Segment Values
• Performance Measure Units
The Euna Budget Implementation may includes services
to setup the account structure configuration for the items
listed above. However, the Budget Book Studio
implementation does not include services to make
substantial changes to the existing account string or
relationships between the account string data structures
that were created during the initial Euna Budget Pro
implementation. It only includes building additional
entities/fields upon existing data elements to account for
missing data compared to the sample budget book. This
Not in Scope
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roll-up reporting elements to support data aggregation in
reports.
Additional Module
Implementation
that exists within a module that has not been utilized,
implemented or purchased by the CITY, the CITY is
responsible for configuration and data entry within that
module. For example, if a section of the sample budget
book contains performance measure data, but that module
is not utilized in Euna Budget Pro, then the CITY will
need to configure and fill data into that module to facilitate
Not in Scope
Import Supporting
Data within Euna
Budget Pro
data model in Euna Budget Pro in order to determine how
recommended configuration changes will need to be made
to accommodate the sample budget book in line with what
the CITY already has configured. Should data importing
be needed into any additional entities/fields that have been
newly configured in the data model, the CITY and project
lead will determine how to share the responsibility for
importing data values in those entities/fields, in a way that
respects the 40 hours allocated for the
Shared Task
Import Supporting
Data
Book Studio
available within Budget Book Studio and guide the CITY
through ideal use of the features in order to develop the
sample budget book. Should data importing be needed, the
CITY and project lead will determine how to share the
responsibility for importing data values in those
entities/fields, in a way that respects the 40 hours
Shared Task
Data Model
Configuration &
Testing Integration
from Euna Budget
structure data model, CONSULTANT will run working
sessions to do some initial configuration needed to the
existing data model with entities/fields to support creation
of the sample budget book layout in Budget Book
well as provide guidance to the CITY on the creation of
In Scope
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Additional Module
Implementation
that exists within a module that has not been utilized,
implemented or purchased by the CITY, the CITY is
responsible for configuration and data entry within that
module. For example, if a section of the sample budget
book contains performance measure data, but that module
is not utilized in Euna Budget Pro, then the CITY will
need to configure and fill data into that module to facilitate
Not in Scope
Train the Trainer
Training
CONSULTANT will provide training through online
content and webinar style training sessions, including an
optional introduction for newcomers to OpenBook.
In Scope
Guidance on
Budget Book
Creation
CONSULTANT will provide guidance and work
assistance to client on how to complete the creation of
the budget book sample within Budget Book Studio,
including tasks such as:
1. Manual input of values deemed non-automatable
2. Insertion of unstructured data from files such as
images, maps, award certificates, and charts
3. Sharing experience of layout and content options
Shared Task
Budget Book
Creation
book sample within Budget Book Studio. They will
provide configuration of the Euna Budget Pro data
model, analysis on essential View creation, training on
the Budget Book Studio product, expertise on best use of
the Budget Book Studio features and support through the
CITY Task
Custom Reporting
Entity Creation
reporting entities available within the Euna Budget
product. Should a custom reporting entity be needed, this
will require a separate change order contract for the
Technical Services team to create that custom reporting
Not in Scope
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HR Data Sync
HR Data Sync
Euna Budget and CITY’s HR or payroll system. This
integration synchronizes:
• New, deleted, and updated employees;
• New, deleted, and updated positions;
• Changes in employee-position relationships;
• Changes in position-costing center relationships.
The integration of profiles (bargaining units), grades, steps,
pay scales and benefits shall not be included unless
expressly referred to in the “Customizations” section of
this Scope of Work.
Notwithstanding responses to Requests for Proposals or
other communications between CONSULTANT and CITY,
the integration of custom chart field items is not included
unless expressly set out in the “Customizations” section of
In scope:
CONSULTA
NT will
create no
more than
one
integration
for
Employees,
one for
Positions,
one for
Position
Allocations.
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Business Process Improvement
Consulting Services -
BPI
• The budget process for both the operating and capital
budgets;
• The chart of accounts;
• Personnel planning and budgeting;
• Reporting requirements.
This process will require the participation of
stakeholders in group workshops and may include
or one-on-one workshops.
Budget Process
End to end review, including high level descriptions of
the tasks performed, the timing of these tasks, and
dependencies. CONSULTANT will facilitate a design of
the budget process as it relates to the Euna Budget system
being implemented, seeking opportunities for
improvement.
This output will be documentation of:
• Budget process stages;
• What happens in each stage;
• Input, outputs, and participants in each stage;
• Stage
permission
requirements.
Chart of Accounts
Determine the data model, including the COA, roll-ups
(whether part of the GL or not), and other budgetary fields
of data. Complete field mapping and prototyping in Euna
Budget.
Personnel Budgeting
Review and refine personnel budgeting process and
include common personnel budget issues including vacant
positions, overtime, benefits, allowances, and statutory
scope with:
90 Hours
of gaps,
for
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Reporting Requirements
Ensure reporting is supported by the data model. Identify
reports in three primary groups: those required for
developing budget, those required for managing budget, and
those disseminating for information “up and out”
(management and public). Reporting can be through
traditional print reports, saved searches, dashboards, smart
reports, and OpenBook.
CITY will assume responsibility for maintaining all process documents after hand-off.
Care Plus Premium Deliverables:
If a service is unused within a particular year, they do not roll over to the next year. The plan
includes the services listed below:
o Version Upgrades: Customization Upgrades
o Version Upgrades: Customization Review & Removal
o Version Upgrades: Custom Report Upgrades
o Read-Only SQL Access
o Annual Block of 50 Service Hours
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EXHIBIT A-1
PROFESSIONAL SERVICES TASK ORDER
CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions
of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this
Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical
and supporting personnel required by this Task Order as described below.
CONTRACT NO.
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.:
2. CONSULTANT NAME:
3. PERIOD OF PERFORMANCE: START: COMPLETION:
4 TOTAL TASK ORDER PRICE: $__________________
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________
I hereby authorize the performance of the
work described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: ______________________
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
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EXHIBIT B
SCHEDULE OF PERFORMANCE
CONSULTANT shall perform the Services so as to complete each milestone within the number
of days/weeks specified below. The time to complete each milestone may be increased or
decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so
long as all work is completed within the term of the Agreement.
Optional Schedule of Performance Provision for On-Call or Additional Services Agreements.
(This provision only applies if checked and only applies to on-call agreements per Section 1 or
agreements with Additional Services per Section 4.)
The schedule of performance shall be as provided in the approved Task Order, as detailed in
Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case
of Additional Services, provided in all cases that the schedule of performance shall fall within the
term as provided in Section 2 (Term) of this Agreement.
Level Name Start Date End Date Duration
(Days)
1 Business Process Management
2 Client Kick-Off Meeting (1st Meeting)7/5/2026 7/6/2026 1
2 Project Approach Discussion (2nd Meeting)7/7/2026 7/9/2026 2
2 Chart of Account Configuration Discussion (3rd Meeting)7/12/2026 7/16/2026 4
2 In Depth Operating Budget Discussion 7/12/2026 7/23/2026 11
2 In Depth Capital Budget Discussion 7/12/2026 7/23/2026 11
2 In Depth Salaries Budget Discussion 7/12/2026 7/23/2026 11
2 Module Entity/Field/Form Configuration 7/27/2026 8/21/2026 25
2 Module Data Importing 7/27/2026 8/21/2026 25
2 Ad Hoc View & Smart Report Configuration 7/27/2026 8/21/2026 25
1 Integrations
2 HR Data Synch (Personnel)8/24/2026 9/25/2026 32
2 Amended Budget Export (Capital)8/24/2026 9/25/2026 32
1 Budget Book Implementation
2 OpenBook & Report Studio Implementation - Pro 8/28/2026 10/9/2026 42
2 Budget Book Implementation - Pro 8/28/2026 11/18/2026 82
1 Extras
2 Single Sign On 8/24/2026 8/28/2026 4
2 Additional Professional Services 11/18/2026 12/18/2026 30
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EXHIBIT C
COMPENSATION
CITY agrees to compensate CONSULTANT for 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 rate schedule attached as Exhibit C-1 up
to the not to exceed budget amount for each task set forth below.
CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below,
provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for
Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement.
CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4),
within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the
maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY.
BUDGET SCHEDULE
Tasks Year 1
(07/01/2026–
06/30/2027)
(07/01/2027–
06/30/2028)
(07/01/2028–
06/30/2029)
(07/01/2029–
06/30/2030)
(07/01/2030–
06/30/2031)
(07/01/2031–
06/30/2032)
(07/01/2032–
06/30/2033)
Task 1
Amended Budget
Export (Capital)
2,500.00
Budget Book
Implementation – Pro
7,760.00
OpenBook & Report 2,328.00
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Studio Implementation
– Pro
Single Sign-On (SSO) 1,500.00
HR Data Sync 12,725.00
Business Process
Management – Pro
22,500.00
Operating Budgeting +
Capital + Personnel +
OpenBook + Budget
Book Care Plus Service
147,902.00 147,902.00 147,902.00 152,339.06 156,909.23 161,616.51 166,465.00
Optional Add on-
Strategic Budgeting
18,270.00 8,270.00 8,270.00 8,270.00 8,270.00 8,270.00 8,270.00
Optional-Ad On-Annual
Comprehensive
Financial Report (ACFR)
8,354.00 4,600.00 4,600.00 4,600.00 4,600.00 4,600.00 4,600.00
Subtotal
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Additional Professional
Services (Time &
Materials, $225/hour,
Net 30 – 5-Year Not-to-
20,000.00 17,009.28 17,009.28 17,009.28 17,009.28
Total Compensation $
243,839.00
$
177,781.28
$
177,781.28
$
182,218.34
$
186,788.51
$
174,486.51
$
179,335.00
REIMBURSABLE EXPENSES
CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime,
information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing,
insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable
expenses hereunder.
Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses
(by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00.
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EXHIBIT C-1
SCHEDULE OF RATES
CONSULTANT’s schedule of rates is as follows:
Additional Professional Services: $225 per hour
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EXHIBIT D
INSURANCE REQUIREMENTS
CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT
OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES
WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE
OF CALIFORNIA.
AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS SPECIFIED HEREIN.
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
AGGREGATE
YES GENERAL LIABILITY, INCLUDING PERSONAL
INJURY, BROAD FORM PROPERTY DAMAGE
BLANKET CONTRACTUAL,
PRODUCTS/COMPLETED OPERATIONS AND FIRE
PROPERTY DAMAGE
BODILY INJURY & PROPERTY
$2,000,000
$2,000,000
$2,000,000
$2,000,000
LIABILITY COVERAGE. THE POLICY SHALL AT A
MINIMUM COVER PROFESSIONAL MISCONDUCT
OR LACK OF REQUISITE SKILL FOR THE
PERFORMANCE OF SERVICES DEFINED IN THE
CONTRACT AND SHALL ALSO PROVIDE
COVERAGE FOR THE FOLLOWING RISKS:
(i) NETWORK SECURITY LIABILITYARISING
FROM UNAUTHORIZED ACCESS TO, USE OF, OR
TAMPERING WITH COMPUTERS OR COMPUTER
SYSTEMS, INCLUDING HACKERS, EXTORTION,
AND
(ii) LIABILITY ARISING FROM
INTRODUCTION OF ANY FORM OF MALICIOUS
SOFTWARE INCLUDING COMPUTER VIRUSES
INTO, OR OTHERWISE CAUSING DAMAGE TO
THE CITY’S OR THIRD PERSON’S COMPUTER,
COMPUTER SYSTEM, NETWORK, OR SIMILAR
COMPUTER RELATED PROPERTY AND THE DATA,
SOFTWARE AND PROGRAMS THEREON.
CONTRACTOR SHALL MAINTAIN IN FORCE
DURING THE FULL LIFE OF THE CONTRACT.
THE POLICY SHALL PROVIDE COVERAGE FOR
BREACH RESPONSE COSTS AS WELL AS
REGULATORY FINES AND PENALTIES AS WELL AS
CREDIT MONITORING EXPENSES WITH LIMITS
SUFFICIENT TO RESPOND TO THESE
OBLIGATIONS.
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YES CYBER AND PRIVACY INSURANCE.
SUCH INSURANCE SHALL INCLUDE COVERAGE
FOR LIABILITY ARISING FROM COVERAGE IN AN
AMOUNT SUFFICIENT TO COVER THE FULL
REPLACEMENT VALUE OF DAMAGE TO,
ALTERATION OF, LOSS OF, THEFT,
DISSEMINATION OR DESTRUCTION OF
ELECTRONIC DATA AND/OR USE OF
CONFIDENTIAL INFORMATION, “PROPERTY” OF
THE CITY OF PALO ALTO THAT WILL BE IN THE
CARE, CUSTODY, OR CONTROL OF VENDOR,
INFORMATION INCLUDING BUT NOT LIMITED
TO, BANK AND CREDIT CARD ACCOUNT
INFORMATION OR PERSONAL INFORMATION,
SUCH AS NAME, ADDRESS, SOCIAL SECURITY
NUMBERS, PROTECTED HEALTH INFORMATION
OR OTHER PERSONAL IDENTIFICATION
INFORMATION, STORED OR TRAMSITTED IN
ELECTRONIC FORM.
YES AUTOMOBILE LIABILITY, INCLUDING ALL
OWNED, HIRED, NON-OWNED
EACH PERSON
EACH OCCURRENCE
PROPERTY DAMAGE
BODILY INJURY AND PROPERTY
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
AND OMISSIONS, MALPRACTICE (WHEN
YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE,
SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT
SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY
AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS,
AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE:
A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR
CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY.
II. CONTRACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT
THE FOLLOWING EMAIL ADDRESS: Purhcasingsupport@paloalto.gov
III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL
INSUREDS”
A. PRIMARY COVERAGE
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE
AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH
ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.
B. CROSS LIABILITY
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THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE
POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED
AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL
NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE
NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY
WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM,
THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE
EFFECTIVE DATE OF CANCELLATION.
VENDORS ARE REQUIRED TO FILE THEIR EVIDENCE OF INSURANCE AND ANY OTHER RELATED NOTICES WITH THE CITY OF PALO ALTO AT THE FOLLOWING EMAIL ADDRESS: PurchasingSupport@PaloAlto.gov
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EXHIBIT E
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EXHIBIT F
CYBERSECURITY TERMS AND CONDITIONS
In order to assure the privacy and security of the personal information of the City's customers
and people who do business with the City, including, without limitation, vendors, utility
customers, library patrons, and other individuals and companies, who are required to share such
information with the City, as a condition of receiving services from the City or selling goods and
services to the City, including, without limitation, the Software as a Service services provider
(the "Consultant") and its subcontractors, if any, including, without limitation, any Information
Technology ("IT") infrastructure services provider, shall design, install, provide, and maintain a
secure IT environment, described below, while it renders and performs the Services and
furnishes goods, if any, described in the Statement of Work, Exhibit B, to the extent any scope of
work implicates the confidentiality and privacy of the personal information of the City's
customers. The Consultant shall fulfill the data and information security requirements (the
"Requirements") set forth in Part A below.
A "secure IT environment" includes (a) the IT infrastructure, by which the Services are provided
to the City, including connection to the City's IT systems; (b) the Consultant's operations and
maintenance processes needed to support the environment, including disaster recovery and
business continuity planning; and (c) the IT infrastructure performance monitoring services to
ensure a secure and reliable environment and service availability to the City. "IT infrastructure"
refers to the integrated framework, including, without limitation, data centers, computers, and
database management devices, upon which digital networks operate.
In the event that, after the Effective Date, the Consultant reasonably determines that it cannot
fulfill the Requirements, the Consultant shall promptly inform the City of its determination and
submit, in writing, one or more alternate countermeasure options to the Requirements (the
"Alternate Requirements" as set forth in Part B), which may be accepted or rejected in the
reasonable satisfaction of the Information Security Manager (the "ISM").
Part A. Requirements:
The Consultant shall at all times during the term of any contract between the City and the
Consultant:
(a) Appoint or designate an employee, preferably an executive officer, as the security liaison
to the City with respect to the Services to be performed under this Agreement.
(b) Comply with the City's Information Privacy Policy:
(c) Have adopted and implemented information security and privacy policies that are
documented, are accessible to the City, and conform to ISO 27001/2 – Information
Security Management Systems (ISMS) Standards. See the following:
http://www.iso.org/iso/home/store/catalogue_tc/catalogue_detail.htm?csnumber=42103
http://www.iso.org/iso/iso_catalogue/catalogue_tc/catalogue_detail.htm?csnumber=50297
(d) Conduct routine data and information security compliance training of its personnel that is
appropriate to their role.
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(e) Develop and maintain detailed documentation of the IT infrastructure, including software
versions and patch levels.
(f) Develop an independently verifiable process, consistent with industry standards, for
performing professional and criminal background checks of its employees that (1) would
permit verification of employees' personal identity and employment status, and (2) would
enable the immediate denial of access to the City's confidential data and information by
any of its employees who no longer would require access to that information or who are
terminated.
(g) Provide a list of IT infrastructure components in order to verify whether the Consultant
has met or has failed to meet any objective terms and conditions.
(h) Implement access accountability (identification and authentication) architecture and
support role-based access control ("RBAC") and segregation of duties ("SoD")
mechanisms for all personnel, systems, and Software used to provide the Services.
"RBAC" refers to a computer systems security approach to restricting access only to
authorized users. "SoD" is an approach that would require more than one individual to
complete a security task in order to promote the detection and prevention of fraud and
errors.
(i) Assist the City in undertaking annually an assessment to assure that: (1) all elements of
the Services' environment design and deployment are known to the City, and (2) it has
implemented measures in accordance with industry best practices applicable to secure
coding and secure IT architecture.
(j) Provide and maintain secure intersystem communication paths that would ensure the
confidentiality, integrity, and availability of the City's information.
(k) Deploy and maintain IT system upgrades, patches and configurations conforming to
current patch and/or release levels by not later than 30 days after its date of release.
Emergency security patches must be installed within 24 hours after its date of release.
(l) Provide for the timely detection of, response to, and the reporting of security incidents,
including on-going incident monitoring with logging.
(m) Notify the City within 24 hours of detecting a security incident that results in the
unauthorized access to or the misuse of the City's confidential data and information.
(n) Inform the City that any third party service provider(s) meet(s) all of the Requirements.
(o) Perform security self-audits on a regular basis and not less frequently than on a quarterly
basis, and provide the required summary reports of those self-audits to the ISM on the
annual anniversary date or any other date agreed to by the Parties.
(p) Accommodate, as practicable, and upon reasonable prior notice by the City, the City's
performance of random site security audits at the Consultant's site(s), including the site(s)
of a third-party service provider(s), as applicable. The scope of these audits will extend to
the Consultant's and its third-party service provider(s)' awareness of security policies and
practices, systems configurations, access authentication and authorization, and incident
detection and response.
(q) Cooperate with the City to ensure that to the extent required by applicable laws, rules and
regulations, and the Confidential Information will be accessible only by the Consultant
and any authorized third-party service provider's personnel.
(r) Perform regular, reliable secured backups of all data needed to maximize the availability
of the Services. Adequately encrypt the City of Palo Alto's data, during the operational
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process, hosted at rest, and the backup stage at the Vendors' environment (including
Vendor's contracting organization's environment).
(s) Maintain records relating to the Services for a period of three (3) years after the
expiration or earlier termination of this Agreement and in a mutually agreeable storage
medium. Within thirty (30) days after the effective date of expiration or earlier
termination of this Agreement, all of those records relating to the performance of the
Services shall be provided to the ISM.
(t) Maintain the Confidential Information in accordance with applicable federal, state, and
local data and information privacy laws, rules, and regulations.
(u) Encrypt the Confidential Information before delivering the same by electronic mail to the
City and or any authorized recipient.
(v) Provide Network Layer IP filtering services to allow access only from the City of Palo
Alto's IP address and Vendor IPs required to support operation of the service, to the
Vendor environment (primarily hosted for the City of Palo Alto).
(w) Offer a robust disaster recovery and business continuity (DR-BCP) solutions to the City
for the systems and services the Vendor provides to the City.
(x) Provide and support Single Sign-on (SSO) and Multifactor Authentication (MFA)
solutions for authentication and authorization services from the "City's environment to
the Vendor's environment," and Vendor's environment to the Vendor's cloud
services/hosted environment." The Vendor shall allow employees of the City to have full
admin access to the Vendor's application.
(y) Unless otherwise addressed in the Agreement, shall not hold the City liable for any direct,
indirect or punitive damages whatsoever including, without limitation, damages for loss
of use, data or profits, arising out of or in any way connected with the City's IT
environment, including, without limitation, IT infrastructure communications.
(z) The Vendor must provide evidence of valid cyber liability insurance policy per the City’s
EXHIBIT “D” INSURANCE REQUIREMENTS.
Part B. Alternate Requirements: N/A
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EXHIBIT G
CONSULTANT END USER LICENSE AGREEMENT
This agreement, including all documents referenced and incorporated below and the Order Form which by
this reference is incorporated herein (collectively, this “Agreement”), is a binding agreement between Euna
Solutions, Inc. (referred to as “Licensor” or “EUNA,” as part of the EUNA brand) and the entity identified
on the Order Form as the Customer (“Customer”). EUNA and Customer are sometimes individually
referred to as a “Party” and collectively referred to as the “Parties.” The Parties agree as follows:
LICENSOR PROVIDES THE SAAS OFFERING, PROFESSIONAL SERVICES, SOFTWARE AND
DOCUMENTATION SOLELY ON THE TERMS AND CONDITIONS SET FORTH IN THIS
AGREEMENT AND ON THE CONDITION THAT CUSTOMER ACCEPTS AND FULLY COMPLIES
WITH THEM. BY CHECKING THE “ACCEPT” BOX ON THE ORDER FORM OR ISSUING A
PURCHASE ORDER AFTER REVIEWING THESE TERMS YOU (A) ACCEPT THIS AGREEMENT
AND AGREE THAT CUSTOMER IS LEGALLY BOUND BY ITS TERMS AND CONDITIONS; AND
(B) REPRESENT AND WARRANT THAT: (I) YOU ARE OF LEGAL AGE TO ENTER INTO A
BINDING AGREEMENT; AND (II) IF CUSTOMER IS A CORPORATION, GOVERNMENTAL
ORGANIZATION, OR OTHER LEGAL ENTITY, YOU HAVE THE RIGHT, POWER, AND
AUTHORITY TO ENTER INTO THIS AGREEMENT ON BEHALF OF CUSTOMER AND BIND
CUSTOMER TO ITS TERMS. IF CUSTOMER DOES NOT AGREE TO THE TERMS AND
CONDITIONS OF THIS AGREEMENT, LICENSOR WILL NOT AND DOES NOT LICENSE OR
PROVIDE THE SAAS OFFERING, PROFESSIONAL SERVICES, SOFTWARE OR OTHER
DELIVERABLE TO CUSTOMER AND YOU MUST NOT DOWNLOAD, USE OR ACCESS THE
SAAS OFFERING, SOFTWARE OR DOCUMENTATION OR OTHERWISE RECEIVE THE
PROFESSIONAL SERVICES.
NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT OR YOUR OR
CUSTOMER’S ACCEPTANCE OF THE TERMS AND CONDITIONS OF THIS AGREEMENT, NO
LICENSE IS GRANTED (WHETHER EXPRESSLY, BY IMPLICATION, OR OTHERWISE) UNDER
THIS AGREEMENT WITHOUT AN APPLICABLE ORDER FORM AND PAYMENT OF ALL
REQUIRED FEES, COSTS AND AMOUNTS. THIS AGREEMENT EXPRESSLY EXCLUDES ANY
RIGHT CONCERNING ANY SAAS OFFERING, PROFESSIONAL SERVICES, SOFTWARE OR
DOCUMENTATION THAT CUSTOMER DID NOT ACQUIRE LAWFULLY OR THAT IS NOT A
LEGITIMATE, AUTHORIZED COPY OF LICENSOR’S SAAS OFFERING, SOFTWARE OR
DOCUMENTATION.
1. Definitions.
a. “Authorized User” means Customer’s employees, consultants, contractors, and agents (i) who
are authorized by Customer to access and use the SAAS Offering under the rights granted to Customer
pursuant to this Agreement and the applicable Order Form, and (ii) for whom access to the SAAS Offering
has been purchased hereunder.
b. “Confidential Information” means any information relating to a Disclosing Party (as defined
in Section 9), its business, technology, suppliers, licensors, resellers, distributors, customers, and third
parties to whom the Disclosing Party has an obligation of confidentiality, whether in tangible or intangible
form, which is either marked or designated as “confidential” or “proprietary,” or disclosed under
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circumstances indicating its confidential or proprietary nature, or otherwise would be known to be
confidential or proprietary by a reasonable person.
c. “Customer Data” means, other than Diagnostic Data, information, data, and other content, in
any form or medium, that is submitted, posted, or otherwise transmitted by or on behalf of Customer or an
Authorized User through the SAAS Offering or Professional Services, as applicable.
d. “Deliverable” means all documents, work product and other materials that are delivered to
Customer under this Agreement or prepared by or on behalf of the EUNA in the course of performing the
Professional Services or providing the SAAS Offering, including any items identified as such in the
applicable Order Form.
e. “Diagnostic Data” means all aggregated and de-identified information that EUNA’s systems
or applications automatically collect regarding Customer’s use of the SAAS Offering and its performance,
including to compile statistical and performance information related to the provision and operation of the
SAAS Offering.
f. “Documentation” means the applicable training, informational or support videos and
documentation relating to (i) the use of and access to the SAAS Offering and (ii) any error corrections, bug
fixes, enhancements, improvements, new releases, maintenance releases and updates thereto, provided by
EUNA to Customer in any format.
g. “Fees” means the fees set forth in the applicable Order Form, including any Third-Party Pass-
Through Fees as defined herein.
h. “Intellectual Property Rights” (i) all United States and foreign patents, patent applications, and
certificates of invention, and all continuations, continuations in part, extensions, renewals, divisions, re-
issues and re-examinations relating thereto; (ii) all moral rights and copyrights in any work of authorship
or other work recognized by applicable Law, including all copyright registrations issued by the United
States Register of Copyrights and applications therefor, together with any renewal or extension thereof, or
by similar authority in any other jurisdiction, and all rights deriving therefrom; (iii) all, whether registered
or unregistered, trademarks, service marks, domain names, trade names and trade dress, and all goodwill
relating thereto; (iv) all rights in all trade secrets, know-how, and confidential information; and (v) other
intellectual property rights protectible under any Laws or international conventions throughout the world,
and in each case including the right to apply for registrations, certificates, or renewals with respect thereto
and the right to prosecute, enforce, obtain damages relating to, settle or release any past, present, or future
infringement or misappropriation thereof.
i. “Law” means all applicable laws (including those arising under common law), statutes, codes,
rules, regulations, reporting or licensing requirements, ordinances and other pronouncements having the
effect of law in the United States, any foreign country or any domestic or foreign state, county, city or other
political subdivision, including those promulgated, interpreted or enforced by any governmental or
regulatory authority.
j. “Order Form” means the order form between the Parties that incorporates this Agreement.
k. “Public Facing Software” means a portion of the Software made available by the Customer to
members of the general public.
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l. “SAAS IP” means the SAAS Offering and the Documentation. For the avoidance of doubt,
SAAS IP includes proprietary data structures, database schemas, metadata, Diagnostic Data and any
information, data, or other content derived from EUNA’s monitoring of Customer’s access to or use of the
SAAS IP but does not include Customer Data.
m. “SAAS Offering” means the software-as-a-service offering, including any integrated platform
offering, as set out in the applicable Order Form.
n. “Professional Services” means the services set out in the applicable Order Form and any
associated statement of work attached or referenced in the Order Form (“Statement of Work”), if applicable.
o. “Term” has the meaning set forth in Section 0.
p. “Third-Party Pass-Through Fees” means fees charged to EUNA by third-party vendors for
products, services, or application programming interfaces ("APIs") that are incorporated into or required
for the operation of the SAAS Offering, which EUNA passes through to Customer at cost with no markup,
where such fees are attributable to Customer's selection of, or contractual relationship with, a specific third-
party vendor ("Customer-Selected Vendor"), and where the Customer-Selected Vendor's API or integration
is required to enable the functionality described in the applicable Order Form.
q. “Third-Party Products” means any third-party products described in the applicable Order
Form provided with or incorporated into the SAAS Offering.
2. Professional Services. Subject to and conditioned on Customer’s payment of Fees and compliance
with all other terms and conditions of this Agreement, EUNA shall provide to Customer the Professional
Services in accordance with the applicable Order Form and Statement of Work.
3. Software Subscription.
a. Provision of Access. Subject to and conditioned on Customer’s payment of Fees and compliance with
all other terms and conditions of this Agreement, EUNA hereby grants Customer a non-exclusive, non-
sublicensable, non-transferable (except in compliance with Section 22) right to access and use the SAAS
Offering during the Term, solely for use by Authorized Users in accordance with the terms and conditions
herein. Such use is limited to Customer’s internal use. EUNA shall provide to Customer the necessary
information to allow Customer to access the SAAS Offering. The total number of Authorized Users will
not exceed the number set forth in the applicable Order Form, except as expressly agreed to in writing by
the Parties and subject to any appropriate adjustment of the Fees payable hereunder.
b. Public Facing Software. Notwithstanding the definition of Authorized Users, Customer is permitted
to provide access to its constituents that are solely utilizing public facing functionalities of the SAAS
Offering that do not otherwise require a specific license from EUNA.
c. Documentation License. Subject to and conditioned on Customer’s payment of Fees and compliance
with the terms and conditions of this Agreement, EUNA hereby grants to Customer a non-exclusive, non-
sublicensable, non-transferable (except in compliance with Section 22) license to use the Documentation
during the Term solely for Customer’s internal business purposes in connection with its use of the SAAS
Offering.
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d. Optional Features. EUNA shall provide all extensions, enhancements, and other changes, which are
logical improvements to the SAAS Offering and to which EUNA makes generally available on a
commercial basis, without charge, to other licensees of the EUNA SAAS Offering. Updates do not include
any new software products that are then made generally available on a commercial basis as separate, price-
listed options or additions to the SAAS Offering nor do they include any Professional Services that may be
required for implementation.
e. Use Restrictions. Customer shall not use the SAAS Offering for any purposes beyond the scope of
the access granted in this Agreement or the applicable Order Form. Customer shall not at any time, directly
or indirectly, and shall not permit any Authorized Users to: (i) copy, modify, or create derivative works of
the SAAS Offering or Documentation, in whole or in part; (ii) rent, lease, lend, sell, license, sublicense,
assign, distribute, publish, transfer, or otherwise make available the SAAS Offering or Documentation to a
third party; (iii) reverse engineer, disassemble, decompile, decode, adapt, or otherwise attempt to derive or
gain access to any software component of the SAAS Offering, in whole or in part; (iv) remove any
proprietary notices from the SAAS Offering or Documentation; or (v) use the SAAS Offering or
Documentation in any manner or for any purpose that causes such SAAS Offering or Documentation to
infringe, misappropriate, or otherwise violate any Intellectual Property Right or other right of any person,
or that violates any applicable Law.
f. Suspension. Notwithstanding anything to the contrary in this Agreement, EUNA may temporarily
suspend Customer’s and any Authorized User’s access to any portion or all of the SAAS Offering if: (i)
EUNA reasonably determines that (A) there is a threat or attack on any of the SAAS IP; (B) Customer’s or
any Authorized User’s use of the SAAS IP disrupts or poses a security risk to the SAAS IP or to any other
customer or vendor of EUNA; (C) Customer or any Authorized User is using the SAAS IP for fraudulent
or illegal activities; (D) subject to applicable Law, Customer has ceased to continue its business in the
ordinary course, made an assignment for the benefit of creditors or similar disposition of its assets, or
become the subject of any bankruptcy, reorganization, liquidation, dissolution, or similar proceeding; or
(E) EUNA’s provision of the SAAS Offering to Customer or any Authorized User is prohibited by
applicable Law; (ii) any vendor of EUNA has suspended or terminated EUNA’s access to or use of any
third-party services or products required to enable Customer to access or use the SAAS Offering each a
(“Service Suspension”). EUNA shall use commercially reasonable efforts to resume providing access to
the SAAS Offering as soon as reasonably possible after the event giving rise to the Service Suspension is
investigated, contained, remediated, and cured. EUNA will have no liability for any damage, liabilities,
losses (including any loss of data or profits), or any other consequences that Customer or any Authorized
User may incur as a result of a Service Suspension.
g. Diagnostic Data. Notwithstanding anything to the contrary in this Agreement, EUNA may monitor
Customer’s use of the SAAS Offering and collect and compile Diagnostic Data. As between EUNA and
Customer, all right, title, and interest in Diagnostic Data, and all Intellectual Property Rights therein, belong
to and are retained solely by EUNA. Customer acknowledges that EUNA may compile Diagnostic Data
based on Customer Data input into the SAAS Offering. Customer agrees that EUNA may (i) make
Diagnostic Data publicly available in compliance with applicable Law, and (ii) use Diagnostic Data to the
extent and in the manner permitted under applicable Law. EUNA agrees to process Customer Data
available in accordance with EUNA’s privacy policy which is available upon request and online
at https://Eunasolutions.com/privacy-policy/. EUNA may update its privacy policy from time to time and
such updated privacy policy will be effective and applicable upon posting.
4. Customer Obligations.
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a. For Professional Services. In connection with the Professional Services, Customer shall:
(i) cooperate with EUNA in its performance of the Professional Services and provide access to
Customer’s premises, employees, contractors, and equipment as required to enable EUNA to provide the
Professional Services;
(ii) provide Cooperation, as defined herein, and perform Customer facing milestones and Customer
deliverables necessary to enable EUNA to continue to perform under the Order Form and Statement of
Work; and
(iii) take all steps necessary, including obtaining any required licenses or consents, to prevent Customer-
caused delays in EUNA’s provision of the Professional Services.
b. For the SAAS Offering. In connection with the SAAS Offering:
(i) Customer agrees to be responsible and liable for all uses of the SAAS Offering and Documentation
resulting from access provided by Customer, directly or indirectly, whether such access or use is permitted
by or in violation of this Agreement. Without limiting the generality of the foregoing, Customer agrees to
be responsible for all acts and omissions of Authorized Users, and any act or omission by an Authorized
User that would constitute a breach of this Agreement if taken by Customer will be deemed a breach of this
Agreement by Customer. Customer shall use reasonable efforts to make all Authorized Users aware of this
Agreement’s provisions as applicable to such Authorized User’s use of the SAAS Offering and shall cause
Authorized Users to comply with such provisions.
(ii) EUNA may from time to time make Third-Party Products available to Customer. For purposes of this
Agreement, such Third-Party Products are subject to their own terms and conditions and the applicable
flow-through provisions. Where a Third-Party Product or API is provided by a Customer-Selected Vendor,
Customer acknowledges that the pricing for such Third-Party Products or APIs is established and controlled
solely by the Customer-Selected Vendor and is not within EUNA's control. EUNA shall pass through any
increases in Third-Party Pass-Through Fees to Customer upon written notice as set forth in Section 5(c).
Customer's continued use of the SAAS Offering following the effective date of any such increase shall
constitute Customer's acceptance of the updated Third-Party Pass-Through Fees. For the avoidance of
doubt, EUNA does not markup Third-Party Pass-Through Fees and assumes no liability for pricing
decisions made by Customer-Selected Vendors.
(iii) EUNA will use commercially reasonable efforts to implement the SAAS Offering. Customer
acknowledges and agrees that Customer’s timely provision of (and EUNA’s access to) Customer’s
assistance, cooperation, and complete and accurate feedback, approvals, information, and data from
Customer’s officers, agents and employees as is reasonably requested by EUNA (collectively,
“Cooperation”) is essential to the implementation and operation of the SAAS Offering, and that EUNA
shall not be liable for any deficiency, delay or failure in implementing or operating the SAAS Offering if
such deficiency, delay or failure results from Customer’s failure to provide full Cooperation as required
hereunder. Cooperation will include designating a project manager to interface with EUNA during the
course of EUNA’s implementation or provision of the SAAS Offering. If Customer repeatedly fails to
provide Cooperation, EUNA may terminate this Agreement in accordance with Section 10(b)(ii).
5. Fees and Expenses.
a. Fees. Intentionally Omitted
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b. Taxes. Intentionally Omitted
c. Third-Party Pass-Through Adjustments. Notwithstanding anything to the contrary in this Agreement,
EUNA reserves the right to adjust the Fees payable under any Order Form to reflect changes in Third-Party
Pass-Through Fees imposed by Customer-Selected Vendors. EUNA shall use commercially reasonable
efforts to provide Customer with advance notice of anticipated Third-Party Pass-Through Fee changes as
soon as practicable after EUNA receives notice from the applicable Customer-Selected Vendor, which
notice shall identify: (i) the applicable Customer-Selected Vendor; (ii) the prior fee amount; (iii) the new
fee amount; and (iv) the effective date of the adjustment. Customer-Selected Vendor fee adjustments shall
be billed at cost with no markup by EUNA. Customer acknowledges and agrees that Third-Party Pass-
Through Fee increases do not constitute a material breach of this Agreement by EUNA
6. Service Levels and Support.
a. Service Levels. Subject to and conditioned upon Customer’s payment of Fees and compliance with
the terms and conditions of this Agreement, EUNA will use commercially reasonable efforts to make the
SAAS Offering available in accordance with the service levels set out in the provided service level
documentation posted from time to time on EUNA’s website at www.eunasolutions.com/sla/ (the “Service
Level Agreement”).
b. Support. Subject to and conditioned upon Customer’s payment of Fees and compliance with the terms
and conditions of this Agreement, EUNA will use commercially reasonable efforts to provide the support
services described in the support services documentation posted from time to time on EUNA’s website at
www.eunasolutions.com/sla/ (the “Service Level Agreement”).
c. Updates. EUNA reserves the right to modify the Service Level Agreement from time to time
effective immediately by posting an updated policy at the links referenced above. EUNA’s support
obligations extend solely to Customer’s designated support contacts. Customer acknowledges and agrees
that, as between Customer and EUNA, Customer shall be solely responsible to provide any and all support
to all other third parties. Unless otherwise stated in the Service Level Agreement, EUNA shall not have
any obligation to provide support services to any third parties.
7. Representations, Limited Warranties, and Disclaimer.
a. Representations. Each Party hereby represents and warrants that: (i) it has the full corporate right,
power and authority to enter into this Agreement and to perform the acts required hereunder; and (ii) the
execution of this Agreement by such Party, and the performance by such Party of its obligations and duties
hereunder, do not and will not violate any agreement to which such Party is bound or any obligation of such
Party.
b. Warranties for Professional Services. EUNA warrants that it will perform the Professional Services:
(i) in accordance with the terms and subject to the conditions set out in the respective Statement of Work
or Order Form and this Agreement;
(ii) using personnel of commercially reasonable skill, experience, and qualifications; and
(iii) in a timely, workmanlike, and professional manner in accordance with generally recognized industry
standards for similar services.
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c. Warranties for the SAAS Offering. EUNA warrants that during the Term, the SAAS Offering will
conform in all material respects to the Documentation when accessed and used in accordance with the
Documentation. EUNA does not make any warranties, representations or guarantees regarding uptime or
availability of the SAAS Offering except to the extent specifically included in the applicable Service Level
Agreement. THE FOREGOING WARRANTIES, REPRESENTATIONS AND GUARANTEES DO NOT
APPLY AND EUNA STRICTLY DISCLAIMS ALL WARRANTIES, REPRESENTATIONS AND
GUARANTEES WITH RESPECT TO ANY THIRD-PARTY PRODUCTS OR ANY FAILURE IN
PERFORMANCE CAUSED BY THIRD-PARTY PRODUCTS.
d. Remedies. EUNA’s sole and exclusive liability and Customer’s sole and exclusive remedy for breach
of the warranties, representations and guarantees in this Agreement shall be as follows:
(i) EUNA shall use reasonable commercial efforts to promptly cure any such breach; provided, that if
EUNA cannot cure such breach within thirty (30) days after Customer’s written notice of such breach,
Customer may, at its option, terminate this Agreement by serving written notice of termination.
(ii) For Professional Services, Customer’s remedy for breach of the foregoing warranties, representations
and guarantees shall be the re-performance of the relevant Professional Services free of charge to the extent
the breach was caused solely by EUNA. The foregoing remedy shall not be available unless Customer
provides written notice of such breach (which notice reasonably describes the breach and the deficiencies
identified by Customer) within thirty (30) days after delivery of such Professional Service or Deliverable
to Customer.
(iii) For any such breach involving a failure to meet the commitments in the Service Level Agreement,
EUNA’s sole obligation and Customer’s exclusive remedy shall be for EUNA to perform the remedies set
forth in the Service Level Agreement.
e. Disclaimer of Warranties. EXCEPT FOR THE LIMITED WARRANTIES SET FORTH IN THIS
SECTION OF THE AGREEMENT, THE PROFESSIONAL SERVICES, DELIVERABLES, SAAS
OFFERING AND EUNA IP ARE PROVIDED “AS IS” AND EUNA HEREBY DISCLAIMS ALL
WARRANTIES, REPRESENTATIONS AND GUARANTEES WHETHER EXPRESS, IMPLIED,
STATUTORY, OR OTHERWISE. EUNA SPECIFICALLY DISCLAIMS ALL IMPLIED
WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND
NON-INFRINGEMENT, AND ALL WARRANTIES ARISING FROM COURSE OF DEALING,
USAGE, OR TRADE PRACTICE. EXCEPT FOR THE LIMITED WARRANTIES SET FORTH IN THIS
SECTION, EUNA MAKES NO WARRANTY, REPRESENTATION OR GUARANTEE OF ANY KIND
THAT THE PROFESSIONAL SERVICES, DELIVERABLES, EUNA IP, OR ANY PRODUCTS OR
RESULTS OF THE USE THEREOF, WILL MEET CUSTOMER’S, AN AUTHORIZED USER’S, OR
ANY OTHER PERSON’S REQUIREMENTS, OPERATE WITHOUT INTERRUPTION, ACHIEVE
ANY INTENDED RESULT, BE COMPATIBLE OR WORK WITH ANY SOFTWARE, SYSTEM, OR
OTHER PROFESSIONAL, OR BE SECURE, ACCURATE, COMPLETE, FREE OF HARMFUL CODE,
OR ERROR FREE.
8. Intellectual Property.
a. Intentionally omitted.
b. Intentionally omitted.
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c. Customer Data. EUNA acknowledges that, as between EUNA and Customer, Customer either (i)
owns all right, title, and interest, including all Intellectual Property Rights, in and to the Customer Data, or
(ii) has a valid license with the right to sublicense the Customer Data to EUNA as provided herein.
Customer hereby grants to EUNA a non-exclusive, royalty-free, worldwide license to reproduce, distribute,
and otherwise use and display the Customer Data and perform all acts with respect to the Customer Data
as may be necessary for EUNA to provide the SAAS Offering to Customer, and a non-exclusive, perpetual,
irrevocable, royalty-free, worldwide license to reproduce, distribute, modify, and otherwise use and display
Customer Data incorporated within the Diagnostic Data. Customer represents, warrants and agrees that:
(A) it will comply with applicable Law, including the Laws of the territories and jurisdictions from which
any Customer Data is obtained or pertains, in collecting, using, disclosing, transmitting and in soliciting the
transmission of Customer Data into or with the SAAS Offering as contemplated under this Agreement; (B)
prior to transmitting (or soliciting the transmission of) any Customer Data to EUNA through the SAAS
Offering, Customer shall have all applicable consents and approvals required for the transmission of such
Customer Data to EUNA; and (C) EUNA’s use, storage, disclosure and other processing of Customer Data
in accordance with this Agreement or Customer’s instructions or direction will not cause EUNA or any of
its vendors to violate any applicable Law or infringe the rights of any individual or third party.
d. Passwords. Customer is responsible for the confidentiality and use of its passwords, other
credentials, and account, and in no event shall EUNA be liable for any loss of information of Customer or
other claims arising from unauthorized access to the SAAS Offering as a result of the failure by Customer
to protect the confidentiality of its passwords, other credentials or account.
e. Prohibited Information. Except as necessary to utilize the SAAS Offering, Customer shall not
transmit, disclose or otherwise provide (or cause or allow to be transmitted or provided to EUNA): (i) health
information, medical information, health insurance card information, policy identification numbers, or any
other information that would cause EUNA to be classified as a “business associate” under the Health
Insurance Portability and Accountability Act of 1996, as amended (“HIPAA”) or similar designation under
other Laws, (ii) information that causes EUNA to be subject to any Laws beyond those Laws generally
applicable to all cloud service providers, (iii) security passwords or credentials, and/or (iv) data revealing
race, ethnicity, political opinions, religion, sexual orientation, philosophical beliefs or trade union
membership or any other information identified under applicable Law as “sensitive information,” “private
information,” or like designation (collectively, “Prohibited Information”). If Customer transmits or
provides to EUNA any Prohibited Information, Customer shall indemnify and hold EUNA harmless from
and against any claims and liability arising from the transmission to EUNA of any Prohibited Information
or any processing of such information by EUNA, and EUNA shall have no liability or obligation whatsoever
with respect to such Prohibited Information or Customer Data provided to EUNA.
f. Feedback. If Customer or any of its employees or contractors provides, sends or transmits any
communications or materials to EUNA by mail, email, telephone, or otherwise, suggesting or
recommending changes to the SAAS Offering, Documentation, Software, Professional Services, or any of
EUNA’s Intellectual Property Rights, including without limitation, the SAAS IP and new features or
functionality relating thereto, or any comments, questions, suggestions, or the like (“Feedback”), EUNA
is free to use such Feedback irrespective of any other obligation or limitation between the Parties governing
such Feedback. Customer hereby assigns and agrees to assign to EUNA, and will cause its employees,
contractors and/or agents to assign to EUNA, all right, title, and interest in and to the Feedback, including
all Intellectual Property Rights in the Feedback, to EUNA without further consideration. EUNA is free to
use, without any attribution or compensation to any party, any ideas, know-how, concepts, techniques, or
other Intellectual Property Rights contained in the Feedback, for any purpose whatsoever, although EUNA
is not required to use any Feedback.
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g. Reservation of Rights. EUNA reserves all rights not expressly granted to Customer in this
Agreement. Except for the limited rights and licenses expressly granted under this Agreement, nothing in
this Agreement grants, by implication, waiver, estoppel, or otherwise, to Customer or any third party any
Intellectual Property Rights or other right, title, or interest in or to the Professional Services or SAAS IP.
9. Confidentiality. Intentionally Omitted
10. Survival. Sections 14, 15, 16, 17, 28, and 29 of the main body of this Agreement and Sections 3.g, 4,
5, 7, 8, 9, 10, 11, 12, and 14-34 of this Exhibit G survive any termination or expiration of this Agreement.
No other provisions of this Agreement survive the expiration or earlier termination of this Agreement.
11. Indemnification. Intentionally Omitted
12. Limitation of Liability.
a. IN NO EVENT SHALL EUNA BE LIABLE TO CUSTOMER OR TO ANY THIRD PARTY FOR
ANYLOSS OF , REVENUE, OR PROFIT OR LOSS OF DATA OR DIMINUTION IN VALUE, OR FOR
ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL, OR PUNITIVE
DAMAGES WHETHER ARISING OUT OF BREACH OF CONTRACT, TORT (INCLUDING
NEGLIGENCE), OR OTHERWISE, REGARDLESS OF WHETHER SUCH DAMAGE WAS
FORESEEABLE AND WHETHER OR NOT EUNA HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES, AND NOTWITHSTANDING THE FAILURE OF ANY AGREED OR OTHER
REMEDY OF ITS ESSENTIAL PURPOSE.
b. IN NO EVENT SHALL EUNA’S AGGREGATE LIABILITY ARISING OUT OF OR RELATED
TO THIS AGREEMENT, WHETHER ARISING OUT OF OR RELATED TO BREACH OF
CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE, EXCEED TWO-TIMES THE
AGGREGATE AMOUNTS PAID OR PAYABLE TO EUNA PURSUANT TO THE APPLICABLE
ORDER FORM IN THE TWELVE (12) MONTH PERIOD PRECEDING THE EVENT GIVING RISE
TO THE CLAIM. ADDITIONALLY, IN NO EVENT WILL EUNA BE LIABLE FOR ANY CLAIM
BROUGHT BY CUSTOMER MORE THAN ONE (1) YEAR AFTER THE CAUSE OF ACTION AROSE
OR REASONABLY SHOULD HAVE BEEN DISCOVERED. THE LIMIT IN THIS SECTION 12b.
SHALL NOT APPLY TO EUNA’S DUTY TO INDEMNIFY CITY AS DETAILED IN SECTION 16 OF
THIS AGREEMENT.
c. UNDER NO CIRCUMSTANCES SHALL EUNA HAVE ANY LIABILITY OR
RESPONSIBILITY FOR THE ACCURACY OF ANY CUSTOMER DATA THAT IS INPUTTED INTO
THE SAAS OFFERING.
13. Press Release. Intentionally Omitted
14. Information Security. Intentionally Omitted
15. Export of Data.
a. Customer Data. Upon termination, cancellation, expiration, or other conclusion of this Agreement:
(i) EUNA will disable Customer’s and its Authorized Users’ access to the SAAS Offering, including
removal of portal and user interface access to Customer Data.
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Professional Services
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(ii) Customer Data will be logically archived and marked as inactive within EUNA’s systems in accordance
with EUNA’s standard data retention practices. Such archival may include the use of logical deletion
mechanisms (including internal flags or similar controls) that prevent Customer access while preserving
system integrity, audit history, and compliance records.
(iii) Except as expressly required by applicable Law or as otherwise agreed in writing by the Parties, EUNA
shall have no obligation to immediately destroy, erase, or physically delete Customer Data from production
systems, archival systems, or backup media upon termination.
(iv) If Customer submits a written request for deletion of Customer Data following termination, EUNA will
review such request and, to the extent commercially reasonable and not inconsistent with applicable Law,
regulatory requirements, litigation hold obligations, contractual commitments, or legitimate business record
retention practices, delete or anonymize such Customer Data within a reasonable timeframe. Any non-
standard deletion efforts may be subject to a mutually agreed Statement of Work and applicable Fees.
(v) Customer acknowledges that EUNA maintains long-term archival and disaster recovery backups in the
ordinary course of business. Customer Data contained in such backups may not be immediately removed
and may remain until overwritten in the ordinary rotation cycle. EUNA will not restore or access such
backups for the purpose of providing Customer access following termination, except as required by Law.
b. Data Extraction. During the Term of this Agreement, Customer may utilize the standard functionality
of the SAAS Offering for its intended purpose, including the ability to download data and copies of
documents loaded into or generated by the SAAS Offering. Customer shall have the right to retain a copy
of all downloaded documents. During the Term of and within thirty (30) days following termination of this
Agreement, Customer may request EUNA to provide consulting services to Customer in order to perform
a custom extract of Customer data from the SAAS Offering. EUNA will provide the requested consulting
services for an hourly rate set forth in the Order Form or Statement of Work. Custom data extracts will be
provided electronically in a text delimited flat file format (or other mutually acceptable format) and will be
scrubbed of all EUNA proprietary data structures. Customer and EUNA will work together to determine a
list of the specific data elements to be provided, at which point EUNA will provide an estimate of the time
required to extract the data. Once the estimate has been provided, if Customer wishes EUNA to proceed
with the data extract, Customer will make a mobilization payment of fifty percent (50%) of the estimated
amount to EUNA. After receipt of this payment, EUNA will then have thirty (30) days to deliver the data
extracts to Customer. Customer shall have thirty (30) days upon receipt of the data to review for acceptance.
Upon acceptance, EUNA will provide Customer with a final accounting of hours and Customer shall be
responsible for payment of the additional consulting fees.
16. Authorized Reseller Status; Option to Purchase Affiliate Products. GTY Technology Holdings Inc.
is the parent company to multiple other SaaS companies under the Euna brand, including Euna Solutions,
Inc. in the U.S. (such subsidiaries, “Affiliates”). These Affiliates sell purpose-built products and services
for the public sector (“Affiliate Products”). As of the Effective Date, Affiliates include Euna Solutions
Inc., CityBase Inc., and Streamlink Software Inc. dba Amplifund. In addition to the products and services
that are the subject of this Agreement, Customer has the option to purchase from either Euna, as an
authorized reseller, or Affiliates, the Affiliate Products on same terms of the Agreement. Notwithstanding
the foregoing, Customer understands that different order forms, statement of work(s), and product specific
service level agreements may apply. Customer will be provided the Affiliate’s additional product terms
and will have the opportunity to review and consent to such terms.
17. Entire Agreement. Intentionally Omitted
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Solutions, Contract
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Professional Services
Rev. Oct 16, 2024
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18. Notices. Intentionally Omitted
19. Severability. Intentionally Omitted
20. Amendments. Intentionally Omitted
21. Waiver. Intentionally Omitted
22. Assignment. Intentionally Omitted
23. Successors and Assigns. Intentionally Omitted
24. Relationship of the Parties. Intentionally Omitted
25. No Third-Party Beneficiaries. Intentionally Omitted
26. Choice of Law. Intentionally Omitted
27. Choice of Forum. Intentionally Omitted
28. Export Regulation. Customer shall comply with all applicable Laws, and complete all required
undertakings (including obtaining any necessary export license or other governmental approval), that
prohibit or restrict the export or re-export of the SAAS Offering or any Customer Data outside the US.
29. WAIVER OF JURY TRIAL. Intentionally Omitted
30. Counterparts. Intentionally Omitted
31. Force Majeure. “Force Majeure Events” means events beyond a Party’s reasonable control, including
without limitation acts of nature, labor disputes, the stability or availability of the Internet or a portion
thereof, actions by a governmental authority (such as a moratorium on any activities related to this
Agreement or changes in Laws), telecommunication or Internet network failures or brown-outs, failures or
unavailability of third party systems, networks or software, flood, earthquake, fire, lightning, epidemics,
war, acts of terrorism, riots, civil disturbances, sabotage, power grid failures, and denial of service attacks
and other hacking attacks. Neither Party shall be liable for any loss, damage or penalty resulting from delays
or failures in performance resulting from Force Majeure Events (except for any obligations of Customer to
make payments to EUNA hereunder). The Party affected by the Force Majeure Event will promptly notify
the other Party and will resume performance when the Force Majeure Event is no longer effective and the
impact has been remediated.
32. Equitable Relief. Intentionally Omitted
33. Government Use. Intentionally Omitted
34. Cooperative Statement. Intentionally Omitted
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Solutions, Contract
C27197243
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Office of Emergency Services
Meeting Date: June 1, 2026
Report #:2603-6123
TITLE
Approve Amendment No. 1 to Contract C21180768 with Public Safety Innovation, Inc. to Extend
Term by One Year and Update the Schedule of Rates at No Additional Not-to-Exceed Financial
Authority; CEQA Status - Not a project
RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or their
designee to execute Amendment No. 1 to Contract C21180768 with Public Safety Innovation
Inc. (Attachment A) to extend the contract term by one year to May 23, 2027 and update the
schedule of rates for continued provision of as-needed specialized professional services across
a facet of network, computer, data, radio, and mobile systems that reside in vehicles, portable
platforms, and City facilities.
ANALYSIS
Palo Alto public safety departments operate critical emergency response vehicles, systems, and
supporting facilities that in some cases exceeds the skillsets of existing City staff to maintain.
Since 2013 the Office of Emergency Services has used contract support to maintain our
specialized emergency services vehicles, systems, and facilities to a high level of readiness and
service. The Office of Emergency Services initiated this current contract with Public Safety
Innovation in 2021 with a five-year term not to exceed $250,000 for the provision of on-call
specialized professional services across a facet of network, computer, data, radio, and mobile
systems that reside in vehicles, portable platforms, and City facilities.1
Over the past five years OES has issued 17 task orders encompassing:
Installation of vehicular components to response vehicles: warning devices,
telecommunications equipment, sensors;
1 Public Safety Innovation, Inc Contract for Specialized Professional Services C21180768
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Maintenance and repair of specialized public safety vehicle systems: masts, solar
systems, battery systems, touch screen systems, environmental systems, etc.; and
Provision of specialized systems: Mobile, portable, and equipment located in City
facilities, to support the Office of Emergency Services and other jointly-managed
equipment.
The end of the existing contract term for the contract with Public Safety Innovation ends May
23, 2026. Approval of Amendment One extends the term by one year, while also updating the
schedule of rates, so that additional services can be provided as needed, using existing contract
authority. This will enable a range of maintenance services OES anticipates will be needed over
the next twelve months to both emergency response vehicle systems and facilities. This
extended term will also provide OES an opportunity to pursue a request for proposals leading
to the establishment of a new contract for similar services.
FISCAL/RESOURCE IMPACT
Funding is available in the existing contract for this amendment to support an additional year of
on-call services. Approval of this amendment will not appropriate additional funds, and the
original not to exceed amount of $250,000 in the General Fund is unchanged. The City has
expended $181,422 to date.
STAKEHOLDER ENGAGEMENT
OES coordinated this staff report with Administrative Services Department and the City
Attorney’s Office. No other stakeholders were necessary for this effort.
ENVIRONMENTAL REVIEW
CEQA Status - Not a project under CEQA.
ATTACHMENTS
Attachment A: Public Safety Innovation, Inc. C21180768 Amendment 1
APPROVED BY:
OES Chief Ken Dueker, Director Office of Emergency Services
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Page 1 of 4
AMENDMENT NO. 1 TO CONTRACT NO. C21180768
BETWEEN THE CITY OF PALO ALTO AND
PUBLIC SAFETY INNOVATION, INC.
This Amendment No. 1 (this “Amendment”) to Contract No. C21180768 (the “Contract” as
defined below) is entered into as of May 11, 2026, by and between the CITY OF PALO ALTO, a
California chartered municipal corporation (“CITY”), and PUBLIC SAFETY INNOVATION, INC., a
California corporation, located at 9910 Horn Road, Suite 1, Sacramento, CA 95827
(“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 on-call services providing support for critical emergency response C4I (command, control,
computer, communications and information) systems and platforms (the “Project”). The Project
services are used by Palo Alto public safety department (such as Police, Fire, and the Office of
Emergency Services or OES), as detailed therein.
B. The Parties now wish to amend the Contract in order to extend the term by twelve
(12) months beyond the original termination date of May 23, 2026, to May 23, 2027.
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. C21180768
between CONSULTANT and CITY, dated May 24, 2021.
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 May 23, 2027,
unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.”
SECTION 3. 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-2” entitled “SCHEDULE OF RATES, AMENDMENT 1”, ADDED.
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C21180768 Amendment 1
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SECTION 4. 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 5. 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.)
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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
PUBLIC SAFETY INNOVATION, INC.
Officer 1
By:______________________________
Name:___________________________
Title:____________________________
Officer 2 (Required for Corp. or LLC)
By:______________________________
Name:___________________________
Title:____________________________
Attachments:
EXHIBIT “C-2” – SCHEDULE OF RATES, AMENDMENT 1, ADDED
Docusign Envelope ID: 7704E710-A7E8-4232-9316-05548ADA9AA4
Chuck Schuler
President / CEO
Secretary
Jana McKinny
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C21180768 Amendment 1
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EXHIBIT “C-2”
SCHEDULE OF RATES, AMENDMENT 1
CONSULTANT’s schedule of rates for May 24, 2026-May 23, 2027 is as follows:
Job/ Position Title/ Work Hourly Rate
Technician $165.00/hr
Technology Installation $128.00/hr
Engineering $250.00/hr
Consultant $250.00/hr
Travel (from business address to work site – round trip) $70.00/hr
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C21180768 Amendment 1
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Transportation
Meeting Date: June 1, 2026
Report #:2603-6080
TITLE
Approval of Contract Amendment No. 3 to Contract Number C20176367 with LAZ Karp
Associates, LLC to Increase the Compensation by $713,311 for a revised total not-to-exceed
$3,035,596 and Extend the Term by 18 Months for the Parking Enforcement Program for
Residential Preferential Parking Districts; CEQA Status - Not a Project.
RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or designee to
execute Amendment No. 3 to Contract C20176367 with LAZ Karp Associates, LLC (Attachment
A) to extend term by 18 months and increase compensation in an amount not to exceed
$713,311 for Parking Enforcement Program for Residential Preferential Parking Districts. This
amendment results in a revised total contract not-to-exceed amount of $3,035,596.
BACKGROUND
The Office of Transportation (OOT) is responsible for parking policies and program direction for
8 of the City’s 10 commercial and residential parking permit (RPP) programs that provide
parking availability for employees and residents. OOT released an RFP to contract (C20176367)
with LAZ Karp Associates (formerly Serco) to provide parking enforcement services for six
Residential Preferential Parking districts1.
On March 20, 2023, City Council approved a two-year, six-month extension of the original
three-year parking enforcement contract, with the expectation that a competitive solicitation
for parking enforcement services for the included Residential Permit Parking (RPP) areas would
be completed by August 28, 2025.
That solicitation was not completed within the extension period, and the contract term has
lapsed. The primary issue was that Office of Transportation staff did not fully account for the
1 Staff Report #10874 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-
manager-reports-cmrs/year-archive/2020/10874.pdf?t=70665.01 March 20, 2020.
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level of workload capacity required to complete the request for proposals process before the
extension expired. As a result, the solicitation timeline was not aligned with available staff
resources and operational demands.
ANALYSIS
FISCAL/RESOURCE IMPACT
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Significant cost savings were previously achieved throughout the contract’s initial term,
providing the opportunity to extend and renew the current services through early 2025 without
increasing the existing $2,322,285 contract limit. These cost savings in RPP enforcement
resulted from: 1) suspension of enforcement activities related to Covid-19 impacts in the last
three contract years, and 2) the adoption and transition to automated license plate recognition
enforcement and related modified staffing plans. Additional contract services authority is now
needed to continue program services, at approximately $50,000 per month, while City staff
procure a new contract for services to begin March 1, 2027. Funding for this extension is
available within the FY 2026 Adopted Operating Budget, which includes a loan of $0.3 million
from the General Fund to the Residential Preferential Parking Fund.
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
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AMENDMENT NO. 3 TO CONTRACT NO. C20176367
BETWEEN THE CITY OF PALO ALTO AND
LAZ KARP ASSOCIATES, LLC
This Amendment No. 3 (this “Amendment”) to Contract No. C20176367 (the “Contract”
as defined below) is entered into as of August 28,2025, by and between the CITY OF PALO ALTO,
a California chartered municipal corporation (“CITY”), and LAZ KARP ASSOCIATES, LLC, a
Connecticut corporation, located at One Financial Plaza, 14th Floor, Hartford, Connecticut 06103
(“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 parking enforcement services for the Downtown Residential
Preferential Parking (RPP) district, as detailed therein.
B. The Parties now wish to amend the Contract to extend the term through February
28, 2027, and increase the compensation by Seven Hundred Thirteen Thousand Three Hundred
Ten Dollars and Fifty Three Cents ($713,310.53), from Two Million Three Hundred Twenty Two
Thousand Two Hundred Eighty Five Dollars ($2,322,285) to a revised Not-to Exceed total
compensation of Three Million Thirty- Five Thousand Five Hundred Ninety-Five Dollars and Fifty
Three Cents ($3,035,595.53) , for a continuation of services.
C. As the Contract as amended by Amendment No. 2 lapsed on August 28, 2025, the
parties intend to revive the Contract through this Amendment No 3. Should applicable law
require that the Contract be revived, then all terms of the Contract as defined below are hereby
restated and in force, subject to the changes in Sections 2, 3, and 4 of this Amendment No. 3.
New consideration is being given as detailed in Section 3 “Not to Exceed Compensation”.
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. C20176367
between CONSULTANT and CITY, dated March 24, 2020, as amended by:
• Amendment No.1, dated February 16, 2023 and
• Amendment No.2, dated February 12, 2025
b. Other Terms. Capitalized terms used and not defined in this Amendment
shall have the meanings assigned to such terms in the Contract.
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Attachment A - Amendment
No. 3 to Contract Number
C20176367
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SECTION 2. Section 2, “TERM”, of the Contract is hereby amended to read as follows:
“The term of this Agreement shall be from the date of its full execution through February 28,
2027, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement”
SECTION 3. Section 4, “NOT TO EXCEED COMPENSATION”, of the Contract is hereby
amended to read as follows:
The compensation to be paid to CONSULTANT for performance of the Services described in
Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed Three Million Thirty-
Five Thousand Five Hundred Ninety-Five Dollars and Fifty-Three Cents ($3,035,595.53). The
applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “SCHEDULE OF
RATES,” which is attached to and made a part of this Agreement.
Additional Services, if any, shall be authorized in accordance with and subject to the provisions
of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services
performed without the prior written authorization of CITY. Additional Services shall mean any
work that is determined by CITY to be necessary for the proper completion of the Project, but
which is not included within the Scope of Services described at Exhibit “A”.
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. 3”, AMENDED,
REPLACES PREVIOUS.
b. Exhibit “C-1” entitled “SCHEDULE OF RATES, AMENDMENT NO.
3”,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.)
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No. 3 to Contract Number
C20176367
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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
LAZ KARP ASSOCIATES, LLC
Officer 1
By:
Name:
Title:
Officer 2
By:
Name:
Title:
Attachments:
EXHIBIT “C” entitled “COMPENSATION, AMENDMENT NO. 3” (AMENDED, REPLACES PREVIOUS)
EXHIBIT “C-1” entitled “SCHEDULE OF RATES, AMENDMENT NO.3” (AMENDED, REPLACES
PREVIOUS)
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COO
Mike Kuziak
President
John Svendblad
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No. 3 to Contract Number
C20176367
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EXHIBIT “C”
COMPENSATION, AMENDMENT NO.3
(AMENDED, REPLACES PREVIOUS)
The CITY agrees to compensate the CONSULTANT for professional services performed in
accordance with the terms and conditions of this Agreement based on the hourly rate schedule
attached as Exhibit C-1.
The compensation to be paid to CONSULTANT under this Agreement for all services, additional
services, and reimbursable expenses shall not exceed the amount(s) stated in Section 4 of this
Agreement. CONSULTANT agrees to complete all Services and Additional Services, including
reimbursable expenses, within this/these amount(s). Any work performed or expenses incurred
for which payment would result in a total exceeding the maximum amount of compensation set
forth in this Agreement shall be at no cost to the CITY.
1. Year One (3/1/2020 through 2/28/2021) Not to Exceed $748,672.00
2. Year Two (3/1/2021 through 2/28/2022) Not to Exceed $771,132.00
3. Year Three (3/1/2022 through 2/28/2023) Not to Exceed $802,481.00
4. Year Four (3/1/2023 through 2/28/2024) Not to Exceed $842,579.00
5. Year Five (3/1/2024 through 2/28/2025) Not to Exceed $884,708.00 or the
remaining balance of the maximum total compensation under this
Agreement, whichever is less.
Actual Compensation as of August 28, 2025 for years 1 through 6 (Yr 6: March 1, 2025
–August 28, 2025): $2,145,920.53
6. Year Six (08/29/2025 through 2/28/2026) Not to Exceed $289,675.00
7. Year Seven (3/01/2026 through 2/28/2027) Not to Exceed $600,000.00
Reimbursable Expenses: None
Maximum Total Compensation: $3,035,595.53
REIMBURSABLE EXPENSES
The administrative, overhead, secretarial time or secretarial overtime, word processing,
photocopying, in-house printing, insurance and other ordinary business expenses are
included within the scope of payment for services and are not reimbursable expenses. CITY
shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses
for which CONSULTANT shall be reimbursed are: None
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No. 3 to Contract Number
C20176367
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All requests for payment of expenses shall be accompanied by appropriate backup
information. Any expense shall be approved in advance by the CITY’s project manager.
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, including reimbursable expenses, for such services based on the rates set
forth in Exhibit C-1. 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.
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No. 3 to Contract Number
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EXHIBIT “C-1”
SCHEDULE OF RATES, AMENDMENT NO. 3
(AMENDED REPLACES PREVIOUS)
CONSULTANT shall be paid hourly for each officer and project manager that maintains a parking facility.
The tables below include the payment compensation schedule for the program including pre-defined
pricing for implementation of the program. The compensation tables shall remain fixed for term of the
contract.
Compensation Terms – Year 1
Project Manager – Direct Labor Rate 1,920 $49.67 $95,355
Overhead Rate (including Fridge, G&A and Fee) 1,920 $38.43 $73,791
Project Manager (fully burdened) 1,920 $88.10 $169,146
Parking Enforcement Officers – Direct Labor Rate 15,360 $19.00 $291,840
Overhead Rate (including Fringe, G&A and Fee) 15,360 $14.70 $225,844
Parking Enforcement Officer (fully burdened) 15,360 $33.70 $517,684
ODCs/Materials to include: bicycles/vehicles,
uniforms, fuel, cellphones, and other misc.
Officers (7 FT PEOs + 1 FT Supervisor) and
Compensation Terms – Year 2*
Project Manager – Direct Labor Rate 1,920 $51.15 $98,215
Overhead Rate (including Fridge, G&A and Fee) 1,920 $39.59 $76,005
Project Manager (fully burdened) 1,920 $90.74 $174,220
Parking Enforcement Officers – Direct Labor Rate 15,360 $19.57 $300,595
Overhead Rate (including Fringe, G&A and Fee) 15,360 $15.14 $232,619
Parking Enforcement Officer (fully burdened) 15,360 $34.71 $533,214
ODCs/Materials to include: bicycles/vehicles,
uniforms, fuel, cellphones, and other misc.
Officers (7 FT PEOs + 1 FT Supervisor) and
*3% cost of living increase
Docusign Envelope ID: FEDD5AAD-9BF5-4B03-83FF-98FB2C25C8E2
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Attachment A - Amendment
No. 3 to Contract Number
C20176367
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Vers.: Aug. 5, 2019
Page 7 of 8
Compensation Terms – Year 3**
Project Manager – Direct Labor Rate 1,920 $52.18 $100,179
Overhead Rate (including Fridge, G&A and Fee) 1,920 $40.35 $77,477
Project Manager (fully burdened) 1,920 $92.53 $177,657
Parking Enforcement Officers – Direct Labor Rate 15,360 $20.60 $316,416
Overhead Rate (including Fringe, G&A and Fee) 15,360 $15.93 $244,711
Parking Enforcement Officer (fully burdened) 15,360 $36.53 $561,127
ODCs/Materials to include: bicycles/vehicles,
uniforms, fuel, cellphones, and other misc.
Officers (7 FT PEOs + 1 FT Supervisor) and
**3% cost of living increase
Compensation Terms – Year 4***
Labor Categories Est
Hours
Hourly
Rate
Extended
Rate
Project Manager – Direct Labor Rate 1,920 $54.79 $105,195
Overhead Rate (including Fridge, G&A and Fee) 1,920 $42.37 $81,346
Project Manager (fully burdened) 1,920 $97.16 $186,540
Parking Enforcement Officers – Direct Labor Rate 15,360 $21.63 $332,237
Overhead Rate (including Fringe, G&A and Fee) 15,360 $16.73 $256,919
Parking Enforcement Officer (fully burdened) 15,360 $38.36 $589,156
ODCs/Materials to include: bicycles/vehicles,
uniforms, fuel, cellphones, and other misc.
N/A $55,968
Burdens and Fee G&A
ODCs and Materials (fully burdened)
Project Manager (1), Parking Enforcement
Officers (7 FT PEOs + 1 FT Supervisor) and
N/A $842,579
Docusign Envelope ID: FEDD5AAD-9BF5-4B03-83FF-98FB2C25C8E2
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Attachment A - Amendment
No. 3 to Contract Number
C20176367
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Vers.: Aug. 5, 2019
Page 8 of 8
Compensation Terms – Year 5
Labor Categories Est
Hours
Hourly
Rate
Extended
Rate
Project Manager – Direct Labor Rate 1,920 $57.53 $110,455
Overhead Rate (including Fridge, G&A and Fee) 1,920 $44.49 $85,413
Project Manager (fully burdened) 1,920 $102.01 $195,868
Parking Enforcement Officers – Direct Labor Rate 15,360 $22.71 $348,849
Overhead Rate (including Fringe, G&A and Fee) 15,360 $17.56 $269,765
Parking Enforcement Officer (fully burdened) 15,360 $40.27 $618,614
ODCs/Materials to include: bicycles/vehicles,
uniforms, fuel, cellphones, and other misc.
N/A $58,767
Burdens and Fee G&A
ODCs and Materials (fully burdened)
Project Manager (1), Parking Enforcement
Officers (7 FT PEOs + 1 FT Supervisor) and
N/A $884,708
***5% cost of living increase (based on Bay Area CPI 12/22)
Year 5 shall not exceed $884,708.00 or the remaining balance of the maximum total
compensation under this Agreement, whichever is lower.
Compensation Terms – Year 6 through Year 7
Labor Categories Rate
Project Manager – Direct Labor Rate $57.53/hr
Overhead Rate (including Fridge, G&A and Fee) $44.49/hr
Project Manager (fully burdened) $102.01/hr
Parking Enforcement Officers – Direct Labor Rate $22.71/hr
Overhead Rate (including Fringe, G&A and Fee) $17.56/hr
Parking Enforcement Officer (fully burdened) $40.27/hr
ODCs/Materials to include: bicycles/vehicles,
uniforms, fuel, cellphones, and other misc.
$0.00
$0.00
$0.00
Officers (7 FT PEOs + 1 FT Supervisor) and
ODCs/Materials (all fully burdened)
To be determined based
on actual use and hourly
rates above.
Docusign Envelope ID: FEDD5AAD-9BF5-4B03-83FF-98FB2C25C8E2
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No. 3 to Contract Number
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: IT Department
Meeting Date: June 1, 2026
Report #:2511-5458
TITLE
Approval of Amendment No. 1 to 14 Professional Services Contracts for GIS On-Call Services:
C26193271A with Lynx Technologies Inc, C26193271B with Seven Tablets Inc, C26193271C with
iSpatial Techno Solutions Inc, C26193271D with Geodesy, C26193271E with UDC, C26193271F
with NV5 Geospatial Inc, C26193271G with SSP Innovations, C26193271H with Timmons Group,
C26193271I with Infojini Inc, C26193271J with Sybyte Technologies Inc, C26193271K with
360S2G, C26193271L with Enterprise Maps, C26193271M with Farallon Geographics,
C26193271N with Arini Geographics, to increase the Not-to-Exceed Compensation by
$2,000,000 and Extend the Term for One Year; CEQA Status – Not a Project.
RECOMMENDATION
Staff recommends that the City Council authorize the City Manager or their designee to execute
Amendment No. 1 to 14 GIS on-call professional services contracts with each of the vendors
listed above, to increase the not-to-exceed compensation by $2,000,000 annually and extend
the term for one year. This amendment results in a revised total contract Not-to-Exceed
amount of $4,000,000.
EXECUTIVE SUMMARY
Staff recommends that the City Council authorize the City Manager or their designee to
approve Year 2 for 14 existing on-call professional services contracts for GIS support,
supplemental staffing, and programming services. The total spending across all 14 contracts
combined will not exceed $2,000,000 per year. No vendor is guaranteed work; services will be
used only as needed and issued through task orders with defined scope, schedule, and price.
These on-call contracts provide specialized GIS expertise to support the City’s ongoing
transition to an enterprise ArcGIS platform and several multi-year initiatives, including utility
network migrations (electric, water, gas, wastewater), electric grid modernization, public works
asset management, and key integrations with systems such as SAP, Accela, Laserfiche, and
outage management tools. This work enables more reliable operations, better data for
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decision-making, and improved public-facing and internal applications without adding
permanent staff.
BACKGROUND
1. Year 1 is nearing completion, and the City
continues to require GIS on-call support. Staff is now requesting approval for Year 2, from July
1, 2026, through June 30, 2027, and an additional $2,000,000 for a new not-to-exceed amount
of $4,000,000.
Table 1. FY26 GIS On-Call Projects by Funding Source (see further details below table)
Funding Source /
Department Amount Task Orders
Electric Service Order System
Electric Utility – Utility Network Model (UNM)
Migration & Integration
Modernizing Legacy Utility Applications
Electric Grid Modernization Support
New Utility GIS Tools in Development
Citywide IT operations and technology improvements
Upgrades and maintenance of City’s GIS platform
Automation of routine GIS workflows across
Utilities, Planning, Public Works, and other City
departments to improve efficiency and reduce
errors
Integration of GIS with enterprise systems such as
ERP, Permitting System, customer service, utility
management, and permitting tools
Replacement of a cloud-based civic technology
platform
ArcGIS Integrations
1 June 17, 2025 City Council Staff Report:
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=17567
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Table 1. FY26 GIS On-Call Projects by Funding Source (see further details below table)
Funding Source /
Department Amount Task Orders
Transition to an in-house ArcGIS-based tree
maintenance system
To support the City’s transition to a modern, enterprise-level GIS architecture centered on
ArcGIS Enterprise, the Information Technology Department (ITD) issued a Request for Proposals
(RFP) in early 20253. The intent was to establish a pool of qualified vendors capable of providing
GIS on-call services from July 1, 2025, through June 30, 2030. Each on-call contract is based on
hourly rates that vary by role and expertise, reflecting vendor specialization across the scope of
work. The on-call structure allows departments to access GIS expertise as needed, without
adding full-time staff positions, while maintaining flexibility as project priorities evolve.
ANALYSIS
These on-call contracts are recommended to continue in Year 2 because multiple complex,
multi-year GIS initiatives are already underway or scheduled to begin in FY27. The contracts
provide the staffing flexibility and specialized expertise needed to keep these projects on
schedule and support technology and utility modernization goals.
Major GIS initiatives expected to be supported by these on-call contracts in FY 2027:
1. Electric Service Order System (ESOS – New Project)
o Replace manual workflows and multiple SharePoint sites with a centralized, GIS-
integrated portal to manage electric service orders from planning through
construction.
o ESOS is expected to reduce delays, improve coordination, and automate currently
fragmented processes.
2. Electric Utility – Utility Network Model (UNM) Migration & Integration
o Migration from legacy CAD-based mapping to Esri’s Utility Network Model has
begun.
o Remaining work includes multi-year integrations with ERP, Permitting System, the
Outage Management System (OMS), and Automated Utility Design (AUD).
3.Future UNM Migrations – Water, Gas, and Wastewater: Similar migrations and integrations
are planned for water, gas, and wastewater utilities, mirroring the electric utility roadmap.
4.Modernizing Legacy Utility Applications: Replace outdated, custom tools with modern
ArcGIS-based systems across utilities to improve maintainability, integration, and
functionality.
3 2025 RFP: https://procurement.opengov.com/portal/palo-alto-ca/projects/140924
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5.Electric Grid Modernization Support: Provide GIS support for smart grid initiatives such as
Advanced Metering Infrastructure (AMI), Distribution Management System (DMS), FLISR
(Fault Location, Isolation, and Service Restoration), EV load forecasting, and related
analytics.
New Utility GIS Tools in Development: Continue development of tools for water sampling,
hydrant maintenance, backflow prevention, and main replacement tracking.
ArcGIS Integrations: Documentation Management System: Department-specific integrations
began in FY 2026. Replacement of a cloud-based civic technology platform that manages
zoning, construction and planning information, projected to save approximately $60,000
per year in license costs.
Public Works Asset Management: Transition from a commercial tree maintenance system to
an in-house ArcGIS-based system, improving integration with SAP and Accela and reducing
external licensing costs.
Rapid GIS Infrastructure Growth: The City’s ArcGIS platform has quadrupled in size in two
years due to increased demand for internal and public-facing applications, requiring
scalable support, performance tuning, and ongoing maintenance.
Upgrades and maintenance of the City’s GIS platform, data migration from legacy
systems to modern GIS platforms
Development and enhancement of web maps, dashboards, and mobile apps for staff
and public use
Support for asset and infrastructure management (e.g., electric lines, water pipes, street
trees)
Automation of routine GIS workflows to improve efficiency and reduce errors
Integration of GIS with enterprise systems such as ERP, Permitting System, customer
service, utility management, and permitting tools
Maintenance of foundational spatial datasets (e.g., parcels, utilities, maintenance
records)
Technical support to ensure systems are secure, highly available, and high-performing
Real-time mapping and data solutions for operations such as outage tracking and field
inspections
Utility GIS consultants to support Water, Gas, and Wastewater UNM migrations and
system integration experts to connect UNM with SAP, Accela, OMS, AUD, and other
systems
Electric utility consultants with smart grid and GIS alignment expertise
GIS integration specialists for AMI, DMS, OMS, and FLISR
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Data scientists and machine learning engineers to develop forecasting and optimization
tools (e.g., load prediction, EV planning)
Specialists to integrate CAD drawings into GIS for utilities and public works projects
Services under these on-call contracts will be assigned via task orders. Before issuing a task
order, staff will assess whether work can be performed internally or requires specialized
consultant support. Task orders will include documentation and knowledge transfer
requirements to ensure the City retains institutional knowledge.
Contractors will be selected based on availability, relevant expertise, and alignment with
project requirements. Staff will evaluate each task order’s scope, contractor qualifications, and
billing rates to ensure appropriateness and cost-effectiveness. Department directors or their
designees will approve all task orders, including contractor selection and budget adherence.
City Manager or designee will approve any task order over $100,000. Project managers will
oversee deliverables and budgets and will approve invoices only after confirming that billed
hours match work performed and that deliverables meet City standards.
These on-call contracts use the City’s standard professional services template, which allows the
City to: Terminate for convenience with written notice, terminate due to non-appropriation of
funds, temporarily suspend work by written notice, and elect not to issue additional task
orders.
FISCAL/RESOURCE IMPACT
Funding for these on-call contracts in FY 2027 ($450,000) is within proposed budgeted levels
within the Information Technology Fund. The Not-to-exceed amount is higher than the
budgeted amount to allow for other departments to be able to utilize these on-call contracts
with their contract services or capital budgets.
Funding for subsequent years of the contract will be subject to approval through the annual
budget development process. ITD is funded by an internal service fund. Approximately 49% of
the department is General Fund funded with the remaining 51% funded by enterprise and
special revenue funds.
STAKEHOLDER ENGAGEMENT
ITD collaborated with other departments to identify GIS needs, prioritize projects, and confirm
that the proposed on-call contracts and Year 2 extension will support key operational,
regulatory, and modernization objectives.
ENVIRONMENTAL REVIEW
The approval of this contract is exempt from review under the California Environmental Quality
Act (CEQA) under CEQA Guidelines section 15061(c)(3) because it can be seen that there is no
possibility that the activity in question may have a significant effect on the environment.
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ATTACHMENTS
Lynx Technologies Inc, Contact Number C26193271A5
Seven Tablets Inc, Contract Number C26193271B6
iSpatial Techno Solutions Inc, Contract Number C26193271C7
Geodesy, Contract Number C26193271D8
Utility Data Contractors, LLC, Contract Number C26193271E9
NV5 Geospatial Inc, Contract Number C26193271F10
SSP Innovations, Contract Number C2619327G11
Timmons Group, Contract Number C26193271H12
Infojini Inc, Contract Number C26193271I13
Sybyte Technologies Inc, Contract Number C26193271J14
360S2G, Contract Number C26193271K
Enterprise Maps, Contract Number C26193271L
Farallon Geographics Contract Number C26193271M
Arini Geographics, Contract Number C26193271N
APPROVED BY:
5 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/gis-on-
call/2026/c26193271a.pdf
6 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/gis-on-
call/2026/c26193271b.pdf
7 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/gis-on-
call/2026/c26193271c.pdf
8 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/gis-on-
call/2026/c26193271d.pdf
9 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/gis-on-
call/2026/c26193271e.pdf
10 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/gis-on-
call/2026/c26193271f.pdf
11 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/gis-on-
call/2026/c26193271g.pdf
12 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/gis-on-
call/2026/c26193271h.pdf
13 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/gis-on-
call/2026/c26193271i.pdf
14 https://www.paloalto.gov/files/assets/public/v/1/it-department/cmr-attachments/gis-on-
call/2026/c26193271j.pdf
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: June 1, 2026
Report #:2603-6129
TITLE
Approval of Contract Change Order No. 2 in the Amount of $1,000,000 to Contract No.
C23186274 with Monterey Mechanical Company for On-Call Emergency and Critical
Construction Services at the Regional Water Quality Control Plant, for a Revised Not-To-Exceed
Amount of $4,000,000, and Approval of Contract Amendment No. 1 to Contract No. S24190553
with Carollo Engineers Inc. for On-call Engineering Services at the Regional Water Quality
Control Plant to Increase Compensation by $995,000 for a Revised Total Not-to-Exceed Amount
of $1,250,000, and to Extend the Contract Term Through December 31, 2028; CEQA Status –
Exempt Under CEQA Guidelines Section 15301
RECOMMENDATION
Staff recommends that the City Council:
1. Approve and authorize the City Manager or their designee to execute Change Order No.
2, adding $1,000,000 to Contract No. C23186274 with Monterey Mechanical Company
for on-call emergency and critical construction services at the Regional Water Quality
Control Plant, for a revised total not-to-exceed amount of $4,000,000 over a five year
term; and
2. Approve and authorize the City Manager or their designee to execute Contract
Amendment No. 1 to Contract No. S24190553 with Carollo Engineers Inc. for on-call
engineering services at the Regional Water Quality Control Plant, increasing
compensation by $995,000 for a revised total not-to-exceed amount of $1,250,000 and
extending the contract term through December 31, 2028 for a total contract term of
four and a half years.
EXECUTIVE SUMMARY
The Regional Water Quality Control Plant (RWQCP) is an essential wastewater treatment facility
undergoing significant and complex rehabilitation to modernize aging infrastructure and ensure
continued regulatory compliance and service reliability. RWQCP treats wastewater from six
regional partner agencies, including the City of Palo Alto.
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The City relies on two on-call contracts to address urgent construction needs and critical
engineering support. These on-call contracts enable the efficient execution of required work,
avoiding the delay and processing of individual contracts and the need to familiarize new
contractors with each project.
BACKGROUND
1 MMC has completed four
work orders and is currently performing two additional work orders addressing high-priority
failures and deteriorated infrastructure.2,3 Total expenditures and commitments under this
contract are approximately $2.8 million to date.
1 City Council, March 6, 2023; Agenda Item #5; SR #2212-0703
2 City Council, May 5, 2025; Agenda Item #9; SR #2502-4128
3 City Council, October 20, 2025; Agenda Item #5; SR #2508-5114
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On-Call Engineering Services
ANALYSIS
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For context, the Sunnyvale Water Pollution Control Plant utilizes four on-call engineering
services contracts totaling $1,900,000 over four years (2022 - 2026) with an option to extend an
additional year.7 This equates to a yearly average of $475,000 over four years or $380,000 over
five years, if the contract is extended. Sunnyvale’s on-call engineering services agreements are
utilized in the same manner as the RWQCP; however, the higher contract amount enhances
their ability to perform the design services needed. Increasing the on-call engineering contract
value will align the RWQCP with nearby treatment plants and funding authorization, while
improving the efficiency of related projects.
FISCAL/RESOURCE IMPACT
Table 1: Examples of Major Projects funded from WQ-19002
Project Description Total Cost Palo Alto Share Estimated Time
12 kV Electrical Distribution8 $12.3 million $4.6 million*FY2025 – FY2027
Long Range Facilities Plan9 $2.7 million $1.0 million FY2025 – FY2027
On-call Emergency and Critical
Construction
$3.0 million
($4.0 million)
$1.1 million
($1.48 million)
FY2024 – FY2028
7 Sunnyvale City Council, May 6, 2025; Agenda Item #1.E; File #25-0423
8 City Council, October 28, 2024; Agenda Item #5; SR #2408-3389
9 City Council, June 10, 2024; Agenda Item #6; SR #2405-2993
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Table 1: Examples of Major Projects funded from WQ-19002
Project Description Total Cost Palo Alto Share Estimated Time
On-call Engineering Services $0.26 million
($1.25 million)
$0.09 million
($0.46 million)
FY2025 – FY2027
(2028)
*Palo Alto’s share of the project is being reimbursed by Valley Water by the Guiding Principle
Five (GP5) grant.13 If additional funds are required, they will be subject to Council approval
through the City’s standard appropriation process.
Recommendations included in this staff report are shown in parentheses for reference.
STAKEHOLDER ENGAGEMENT
This project is part of the RWQCP’s minor capital improvement program funded by the City of
Palo Alto and its five partner agencies who use the RWQCP for wastewater treatment. The five
partner agencies are regularly updated on both the need for and progress of wastewater
treatment capital work. Updates are provided annually and at other periodic meetings to
inform partner agency staff on the major capital improvement program. With respect to Palo
Alto, public meetings associated with the City’s budget process serve as the primary venue for
engaging the community on new projects and associated rate impacts.
ENVIRONMENTAL REVIEW
Council action on this is exempt from review under the California Environmental Quality Act
pursuant to CEQA Guidelines Section 15301 (b), which includes maintenance of existing publicly
owned wastewater facilities involving negligible or no expansion in use.
ATTACHMENTS
Attachment A: Contract C23186274, Change Order No. 2 with Monterey Mechanical Company
Attachment B: Contract S24190553, Amendment No. 1 with Carollo Engineers Inc.
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer
13 City Council. June 3, 2024; Agenda Item #6; SR #2404- 2877
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Contract Change Order
City of Palo Alto
Department: Public Works WQCP
Contract Number: C23186274
CONTRACT CHANGE ORDER PAGE 1 OF 3
Contract Change Order #02
Project Title:On-Call Emergency Construction Services Project No.:WQ - 19002
Contract Number:C23186274 Date:3/11/2026
Contractor:Monterey Mechanical Company Change Order:02
Description of Change Order
Background Information:The 5-year contract runs from March 21, 2023 to March 15, 2028 for
$1,500,000 ($300,000 / year) to cover the cost of immediate mobilization and
construction costs by the on-call contractor for handling emergency and
urgent construction services at the Palo Alto Regional Water Quality Control
Plant. Change Order No. 1 was signed on July 15, 2025 for $1,500,000 being
added to the original contract amount, bringing the revised contract amount to
$3,000,000.
Change Order Justification:The three completed work orders (2301, 2303, 2307) and the three ongoing
work orders (2302, 2304, 2305) amount to approximately $2.8 million to date
for emergency and urgent construction services. This leaves approximately
$200,000 for the remainder of the contract.
Another $1,000,000 is requested to replenish the contract with funds to cover
future unforeseen urgent and emergency work over the next two years. This
C/O will be subject to approval by the Palo Alto City Council.
Description of Work to be Performed:Unexpected breakdowns or failures of equipment, piping, electrical, concrete,
etc., requiring use of the funds in this contract for urgent, critical repair work.
Incorporates Field Order Number(s):N / A
Cost Time
This change order will:
No cost change: N/A
Increase cost by $ 1,000,000
Decrease cost by $ N/A
G/L account number (s):31651
This change order will:
No change in time
Increase time by days
Decrease time by days
The date of completion as of this change order
remains as:
March 15, 2028
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Attachment A - Contract
C23186274, Change Order
No. 2 with Monterey
Mechanical Company
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CONTRACT CHANGE ORDER PAGE 2 OF 3
Basis for change in cost:
Unit price(s)
Lump sum
Cost plus
Other:
Contract Change Order – continued
CONTRACTOR CERTIFICATION: The undersigned Contractor approves this Change Order as to the changes, if any, in
the contract price specified for each Line Item and as to the extension of time allowed, if any, for completion of the entire
work on account of each Line Item, and agrees to furnish all labor and materials and perform all work necessary to complete
any additional work specified therein, for the consideration stated therein. It is understood that the time and cost adjustments
set forth in this Change Order include full compensation for any impacts or delays associated with the Line Items addressed
in this Change Order.
CLAIM PROCEDURE: Any items in Contractor’s Change Order Request that are not included in this Change Order are
hereby deemed rejected as of the date of this letter. If Contractor wishes to dispute this rejection, it may submit a Claim
pursuant to Section 4.2 of the Contract General Conditions within thirty (30) days of the date of this Change Order.
Accepted for Contractor:Accepted for City of Palo Alto:
By:By:
Title:Monterey Mechanical Co. Project Manager Title:Public Works Department - Project Manager
Date:Date:
PC
O
N
o
.
A
S
I
E
W
A
C
O
R
C
O Description Amount Reason for Change
-02 Unexpected emergency repairs $1,000,000 Replenishment of contract funds for unforeseen work.
Total for this change
order $1,000,000
Scope of Work
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Attachment A - Contract
C23186274, Change Order
No. 2 with Monterey
Mechanical Company
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C23186274, Change Order
No. 2 with Monterey
Mechanical Company
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CONTRACT CHANGE ORDER PAGE 2 OF 3
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Attachment A - Contract
C23186274, Change Order
No. 2 with Monterey
Mechanical Company
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Contract Change Order
City of Palo Alto
Department: Public Works WQCP
Contract Number: C23186274
CONTRACT CHANGE ORDER PAGE 3 OF 3
Document Preparation City Approval – WQCP Head
By:By:
Title:Tom Kapushinski
Sr. Project Engineer Title:Aaron Gilbert
Plant Manager, Water Quality Control Plant
Date:Date:
City Approval – Division Head
Signature required on all change orders
By:
Title:Karin North
Asistant Director, Public Works, ESD
Date:
City Approval – Department Head
Signature required when any individual Change Order exceeds $10,000.
By:
Title:Brad Eggleston
Director of Public Works
Date:
Contract Change Order – continued
Summary of Amounts Payable Under Contract (For Internal Purposes Only)
Original Contract Amount:$1,500,000.00
Previous Change Orders $1,500,000.00
This Change Order $1,000,000.00
Revised Contract Amount:$4,000,000.00
Compare to:
Original Contract
Authorization:$1,500,000.00 Contingency:0.00
Contract Amendment
Authorizations $1,500,000.00 Contingency added:0.00
Contingency
Authorizations:$0.00 Used to date 0.00
Total Authorized Funding:$4,000,000.00 Balance remaining 0.00
Change orders shall not be initiated for Council-approved contracts if the revised contract total exceeds the total
authorized funding amount.
Commented [RG1]: Pending Council approval.
Commented [RG2]: Pending Council approval.
Item 13
Attachment A - Contract
C23186274, Change Order
No. 2 with Monterey
Mechanical Company
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Item 13
Attachment A - Contract
C23186274, Change Order
No. 2 with Monterey
Mechanical Company
Item 13: Staff Report Pg. 11 Packet Pg. 263 of 441
Contract Change Order
City of Palo Alto
Department: Public Works WQCP
Contract Number: C23186274
CONTRACT CHANGE ORDER PAGE 3 OF 3
Item 13
Attachment A - Contract
C23186274, Change Order
No. 2 with Monterey
Mechanical Company
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Vers.: Aug. 5, 2019
Page 1 of 5
AMENDMENT NO. 1 TO CONTRACT NO. S24190553
BETWEEN THE CITY OF PALO ALTO AND
CAROLLO ENGINEERS, INC.
This Amendment No. 1 (this “Amendment”) to Contract No. C24190553 (the “Contract” as
defined below) is entered into as of June 1, 2026, by and between the CITY OF PALO ALTO, a
California chartered municipal corporation (“CITY”), and Carollo Engineers, Inc., a corporation,
located at 2795 Mitchell Drive, Walnut Creek, CA 94598 (“CONSUNTANT”). 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 to supplement engineering services for the Regional Water Quality Control Plant
(the “Project”) and to provide engineering consulting services on an as-needed basis in connection
with the Project (the “Services”), as detailed therein.
B. An ongoing task order as part of the Contract is focused on the structural,
mechanical, and electrical rehabilitation of the existing four gravity thickeners. The estimated
construction completion is at the end of 2028. Additional time for contract performance is required
to leverage the existing engineering consulting knowledge to promote project consistency and
efficiency. The project is being designed and will be eventually constructed such that phasing is
incorporated to facilitate plant operation during construction
C. The Parties now wish to amend the Contract in order to extend the time for
performance by 78 weeks (from 156 weeks to 234 weeks) and increase the maximum
compensation by Nine Hundred Ninety-Five Thousand ($995,000) from Two Hundred Fifty-Five
Thousand Dollars ($255,00) to One Million Two Hundred Fifty Thousand Dollars ($1,250,000 ).
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. C24190553
between CONSULTANT and CITY, dated June 13, 2024, as amended by:
This Amendment No.1, dated June 1, 2026
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:
Docusign Envelope ID: 10B63556-A754-4C37-9FD3-39F58ED96F09
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Inc.
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Page 2 of 5
“The term of this Agreement shall be from the date of its full execution through
December 31, 2028.”
SECTION 3. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby
amended to read as follows:
“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, with a total Not to Exceed Compensation of One
Million Two Hundred Fifty Thousand Dollars ($1,250,000). 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 “B” entitled “SCHEDULE OF PERFORMANCE”, AMENDED, REPLACES
PREVIOUS.
b. Exhibit “C-1” entitled “SCHEDULE OF RATES”, ADDED / 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.)
Docusign Envelope ID: 10B63556-A754-4C37-9FD3-39F58ED96F09
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S24190553, Amendment
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Inc.
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Page 3 of 5
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
COROLLO ENGINEERS, INC.
Officer 1
By:
Name:
Title:
Officer 2 (Required for Corp. or LLC)
By:
Name:
Title:
Attachments:
Exhibit “B” entitled “SCHEDULE OF PERFORMANCE”, AMENDED, REPLACES PREVIOUS
Exhibit “C-1” entitled “SCHEDULE OF RATES”, AMENDED, REPLACES PREVIOUS
Docusign Envelope ID: 10B63556-A754-4C37-9FD3-39F58ED96F09
Rick Chan
Senior Vice President
Katy Solem
Client Services Director
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S24190553, Amendment
No. 1 with Carollo Engineers
Inc.
Item 13: Staff Report Pg. 15 Packet Pg. 267 of 441
Vers.: Aug. 5, 2019
Page 4 of 5
EXHIBIT B
SCHEDULE OF PERFORMANCE
AMENDMENT NO. 1
(AMENDED-REPLACED PREVIOUS)
CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks
specified below. The time to complete each milestone may be increased or decreased by mutual written
agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the
term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule
below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY.
Milestones
Completion
Number of Weeks (as specified below)
from NTP
1. Year One Services 52
2. Year Two Services 104
3. Year Three Services 156
4. Year Four Services 208
5. Year Five Services 234
Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This
provision only applies if checked and only applies to on-call agreements per Section 1 or agreements
with Additional Services per Section 4.)
The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1
(Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional
Services, provided in all cases that the schedule of performance shall fall within the term as provided
in Section 2 (Term) of this Agreement.
Docusign Envelope ID: 10B63556-A754-4C37-9FD3-39F58ED96F09
Item 13
Attachment B - Contract
S24190553, Amendment
No. 1 with Carollo Engineers
Inc.
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Vers.: Aug. 5, 2019
Page 5 of 5
EXHIBIT “C-1”
SCHEDULE OF RATES
AMENDMENT NO. 1
(AMENDED-REPLACED PREVIOUS)
CONSULTANT’s schedule of rates is as follows:
Docusign Envelope ID: 10B63556-A754-4C37-9FD3-39F58ED96F09
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S24190553, Amendment
No. 1 with Carollo Engineers
Inc.
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Utilities
Meeting Date: June 1, 2026
Report #:2501-4065
TITLE
Adoption of a Resolution Amending Utilities Rules and Regulations Numbers 02 (Definitions and
Abbreviations), 03 (Description of Utility Services), 04 (Application for Service), 05 (Service
Contracts), 09 (Disconnection, Termination and Restoration of Service), 10 (Meter Reading), 11
(Billing, Adjustments and Payment of Bills), 18 (Utility Service and Facilities on Customer
Premises, 20 (Special Electric Utility Regulations), 21 (Special Water Utility Regulations), 22
(Special Gas Utility Regulations), 23 (Special Wastewater Utility Regulations), and Utility Rate
Schedule C-4 (Residential Rate Assistance Program), and Repealing Rule 15 (Metering
Equipment); CEQA Status – Not a Project
RECOMMENDATION
Staff recommends that Council adopt the attached Resolution (Attachment A) amending
Utilities Rules and Regulations 02, 03, 04, 05, 09, 10, 11, 15, 18, 20, 21, 22, 23, and Utility Rate
Schedule C-4, and Repealing Rule 15 (Metering Equipment); as attached.
EXECUTIVE SUMMARY
Utilities Rules and Regulations (Rules) are updated as needed to ensure current procedures are
in place to continue City of Palo Alto Utilities (CPAU) operations. The recommended changes to
the various Rules and Regulations add new provisions, remove outdated sections, update
language for clarity, and reflect changes to applicable regulations, business practices and
procedures. The proposed expansion of the City’s Rate Assistance Program of increasing the
number of eligible participants and changing the residential discount rate from 25% to 35% for
electric services (under Utility Rate Schedule C-4 - Residential Rate Assistance Program) was
vetted and approved by the Utilities Advisory Committee and Finance Committee as part of the
FY 2027 budget meetings. The new gas fees (under Rule and Regulation 22 – Special Gas Utility
Regulations) for unauthorized and unscheduled gas disconnection which requires staff time was
approved by Finance Committee during the Municipal Fee section of the budget hearing.
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In addition, the staff has updated the Rules to align with the State of California’s new laws on
Accessory Dwelling Units (ADU) and the State Water Resources Control Board Cross-Connection
Handbook on customer responsibilities, testing requirements, and enforcement actions to
safeguard the public drinking water system.
BACKGROUND
changes do not impact long range planning, policies, or programs. The
changes mainly reflect daily operational changes and procedures that are currently in place.
ANALYSIS
Utilities Rules and Regulations (02, 03, 04, 05, 09, 10, 11, 15, 18, 20, 21, 22, and 23)
Senate Bill (SB) 1211, Assembly Bill (AB) 2533, and Senate Bill 1077
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Utilities Rule and Regulation 03 (Description of Utility Services)
-Connection Control and Backflow Prevention
requirements was standardized, and the Rule clarifies that customers are responsible for
installing, testing, and maintaining required assemblies in accordance with state regulations.
The update also aligns with the State Water Resources Control Board's Cross-Connection
Control Policy Handbook.
-Metering by reaffirming the prohibition on utility resale while
allowing cost allocation under specified conditions.
-owned or maintained
infrastructure, expanding the language for consistency and broader applicability. The list of
services that may require contracts is updated, described as illustrative and non-exclusive, and
expanded to include long-term service agreements, loans or leases for efficiency or reliability
improvements, distributed generation and Energy Storage Facility projects, dark fiber services,
reservation of electric capacity, installation of additional service or lateral connections, and
fiber internet services.
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Utilities Rule and Regulation 09 (Disconnection, Termination and Restoration of Service)
-initiated termination or disconnection, revisions focus on accurately distinguishing
procedures that apply to non-payment from those that apply to other violations. The document
clarifies that 10-day and 48-hour notices are specific to non-payment cases and removes
extraneous or duplicative clauses. Additional edits refine the list of violations that may lead to
termination or disconnection and strengthen language describing unsafe conditions, improper
equipment, and customer impacts on the electric distribution system. Several operational
clarifications were added, including processing timelines for mailed or third-party payments
and emphasizing the need for customers facing imminent disconnection to use methods that
post payments immediately.
-of-service section preserves the distinction between
disconnection for non-payment and termination for other causes, and it outlines the conditions
under which service will be restored once financial, physical, or safety issues have been
resolved.
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Utilities Rule and Regulation 11 (Billing, Adjustments and Payments of Bills)
-party payments and credit card limits. Several sections were
reorganized for clarity, including delinquency rules, dispute processes, and the Budget Billing
Payment Program. Customers served with AMI water meters are not eligible for water leak
adjustments because such Customers can receive email notifications based on City-set
thresholds to alert them of unusually high water flows and/or potential leaks. The edits
removed the maximum credit card payment of $5,000 per account and cost recovery fee for
credit card payments over $5,000, since the City will be implementing a new credit card service
fee for cost recovery. Billing adjustments for water leaks remain capped at $2,500. Maximum
billing for undercharges will no longer be subject to the $500 dollar per Account, per incident,
for cost recovery. The retroactive billing adjustment (back bill or refund) shall not exceed three
years. If requested, CPAU will offer payment arrangement or budget billing for retroactive back
bill adjustments.
-family residential services in wildfire-risk areas must be underground whenever CPAU
determines elevated threat levels. Rules governing number of services reinforce the “one
Point-of-Service per lot” standard, while retaining CPAU discretion to allow additional service
points and clarifying cost responsibility. Edits across protective device and equipment sections
reaffirm Customer/Applicant responsibility for installation, maintenance, and compliance with
CPAU standards, including protective coordination, short-circuit rating alignment, and safe
operation of generation equipment. CPAU retains discretion to require agreements and
conditions under which CPAU will install and maintain such facilities.
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Utilities Rule and Regulation 21 (Special Water Utility Regulations)
Proposed edits in Rule 21 further clarify and strengthen the City’s requirements for maintaining
reliable backflow protection across the water system. The revisions reinforce that Customers
are responsible for installing, testing, and maintaining approved backflow prevention
assemblies in accordance with State Water Resources Control Board requirements and the
City’s Cross Connection Control Program, which is administered under the California Health and
Safety Code. The Program documents and tracks all Customer-owned devices to ensure they
meet annual inspection and testing standards that safeguard the potable water supply from
cross-contamination. If a Customer fails to submit the required annual test report within 90
days, the City may arrange for inspection and testing at the Customer’s expense, and may
curtail or terminate water service if compliance is not achieved. A new section was added for
development that impact the City’s water infrastructure. Developers may be required to
provide a fire flow test to quantify fire flow and domestic water demands as part of a capacity
study. All costs associated with the capacity study and Applicant’s share of necessary water
system improvements are the full responsibility of the Applicant.
Utilities Rule and Regulation 22 (Special Gas Utility Regulations)
The revisions to Rule 22 add a new section barring unauthorized construction activity near
service lines, adding a defined 10-foot buffer and clearer consequences for proceeding without
CPAU permission, including potential service disconnection and responsibility for related fees.
The proposed fee will be included in the Municipal Fee Schedule as discussed during the FY
2027 Proposed Budget meetings with the Finance Committee. A new section was added for
development that impacts the City’s gas infrastructure. Developers may be required to provide
a capacity report to quantify the project’s demands as part of a capacity study. All costs
associated with the capacity study and Applicant’s share of necessary gas system improvements
are the full responsibility of the Applicant.
Utilities Rule and Regulation 23 (Special Wastewater Utility Regulations)
In addition to adding new ADU language, a new section was added to address development
that impact the City’s wastewater infrastructure. Developers may be required to provide a
sewer capacity and flow monitoring report to quantify the project’s demands. All costs
associated with the capacity study and Applicant’s share of necessary wastewater system
improvements are the full responsibility of the Applicant.
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Utility Rate Schedule C-4 (Residential Rate Assistance Program)
FISCAL/RESOURCE IMPACT
Approval of changes to Utilities Rules and Regulation 2, 3, 4, 5, 9, 10, 11, 15, 18, 20, 21, 22, and 23,
will not result in a significant change in net operating revenues or expenses. Changes to Utility Rate
Schedule C-4 of increasing the electric rate discount rate from 25% to 35% and expanding the
number of eligible participants for the rate assistance program will cost approximately $300,000
and $80,000 from the electric and gas public benefit funds respectively.
STAKEHOLDER ENGAGEMENT
1, staff presented the FY 2027 Utilities Budget to the Utilities Advisory Committee
(UAC), recommending two changes in the City’s residential rate assistance program. The changes
include a) increasing the residential electric rate discount from 25% to 35%; and b) increasing the
qualifying income level from 50% (Very Low Income) to 80% (Low Income) of the Santa Clara
County Area Median Income (AMI). On March 25, 2026, staff presented the changes of the rate
assistance program to the UAC Budget Subcommittee. Given rising affordability concerns, both
the UAC and subcommittee were supportive of the proposed changes to the rate assistance
program.
1 Utilities Advisory Committee Meeting on May 6, 2026:
https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=7833047e-6411-4548-8b9e-
c22862b8bd11
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On May 5, 20263, staff presented the FY 2027 Utilities Budget to the UAC, recommending two
changes in the City’s residential rate assistance program. The changes include a) increasing the
residential electric rate discount from 25% to 35%; and b) increasing the qualifying income level
by approximately 50% for entire rate assistance program. Finance Committee expressed support
for the proposed expansion of utility assistance programs for lower-income residents and
emphasized the importance of communicating those benefits to the public. Additional comments
noted that the revised income thresholds would also apply to S/CAP-related assistance programs.
On May, 20264, staff introduced the new gas disconnection fees for non-scheduled gas service or
disconnection call during after-hours and weekends. These fees reflect the Utility’s cost to
disconnect gas service prior to construction to discourage unsafe or hazardous construction
activities within 10 feet of a live gas service or meter. The responsible party will be responsible
for the disconnection and/or removal fees and penalties. Finance Committee tentatively
approved of the proposed FY 2027 municipal fees including the new gas fees.
ENVIRONMENTAL REVIEW
The adoption of the resolution amending Utility Rules and Regulations does not meet the definition
of a “project” under Public Resources Code 21065 or CEQA Guidelines Section 15378(b)(2), thus no
CEQA review of this action is required.
ATTACHMENTS
APPROVED BY:
3 Finance Committee Meeting on May 5, 2026:
https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=1c90c2b7-8128-4dab-8581-
e7d87c08a1c7
4 Finance Committee Meeting on May 6, 2026:
https://cityofpaloalto.primegov.com/viewer/preview?id=0&type=8&uid=09639f78-ff3b-4b7e-9877-c6ef67e46219
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ATTACHMENT A
RESOLUTION NO. _____________________
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING
AMENDMENTS TO UTILITIES RULE AND REGULATION 2 (DEFINITIONS AND
ABBREVIATIONS), UTILITIES RULE AND REGULATION 3 (DESCRIPTION OF
UTILITY SERVICES), UTILITIES RULE AND REGULATION 4 (APPLICATION
FOR SERVICE), UTILITIES RULE AND REGULATION 5 (SERVICE
CONTRACTS), UTILITIES RULE AND REGULATION 9 (DISCONNECTION,
TERMINATION AND RESTORATION OF SERVICE), UTILITIES RULE AND
REGULATION 10 (METER READING), UTILITIES RULE AND REGULATION 11
(BILLING, ADJUSTMENTS AND PAYMENT OF BILLS), UTILITIES RULE AND
REGULATION 18 (UTILITY SERVICE AND FACILITIES ON CUSTOMER
PREMISES), UTILITIES RULE AND REGULATION 20 (SPECIAL ELECTRIC
UTILITY REGULATIONS), UTILITIES RULE AND REGULATION 21 (SPECIAL
WATER UTILITY REGULATIONS), UTILITIES RULE AND REGULATION 22
(SPECIAL GAS UTILITY REGULATIONS), UTILITIES RULE AND REGULATION
23 (SPECIAL WASTEWATER UTILITY REGULATIONS), AND APPROVING
AMENDMENTS TO UTILITY RATE SCHEDULE C-4 (RESIDENTIAL RATE
ASSISTANCE PROGRAM), AND REPEALING UTILITIES RULE AND
REGULATION 15 (METERING)
The Council of the City of Palo Alto does hereby RESOLVE as follows:
Section 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utility Rule and Regulation 02 (Definitions and Abbreviations) is hereby amended as
attached and incorporated. Utility Rule and Regulation 02, as amended, shall become
effective June 1, 2026.
Section 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility
Rule and Regulation 03 (Description of Utility Services) is hereby amended as attached
and incorporated. Utility Rule and Regulation 03, as amended, shall become effective
June 1, 2026.
Section 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utilities Rule and Regulation 04 (Application for Service) is hereby amended as attached
and incorporated. Utility Rule and Regulation 04, as amended, shall become effective
June 1, 2026.
Section 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utilities Rule and Regulation 05 (Service Contracts) is hereby amended as attached and
incorporated. Utility Rule and Regulation 05, as amended, shall become effective June 1,
2026.
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Attachment A - Resolution
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ATTACHMENT A
Section 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utilities Rule and Regulation 09 (Disconnection, Termination and Restoration of Service)
is hereby amended as attached and incorporated. Utility Rule and Regulation 09, as
amended, shall become effective June 1, 2026.
Section 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utilities Rule and Regulation 10 (Meter Reading) is hereby amended as attached and
incorporated. Utility Rule and Regulation 10, as amended, shall become effective June 1,
2026.
Section 7. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utilities Rule and Regulation 11 (Billing, Adjustments and Payment of Bills) is hereby
amended as attached and incorporated. Utility Rule and Regulation 11, as amended, shall
become effective July 1, 2026.
Section 8. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utilities Rule and Regulation 18 (Utility Service and Facilities on Customers Premises) is
hereby amended as attached and incorporated. Utility Rule and Regulation 18, as
amended, shall become effective June 1, 2026.
Section 9. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utilities Rule and Regulation 20 (Special Electric Utility Regulations) is hereby amended
as attached and incorporated. Utility Rule and Regulation 20, as amended, shall become
effective June 1,2026.
Section 10. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utilities Rule and Regulation 21 (Special Water Utility Regulations) is hereby amended
as attached and incorporated. Utility Rule and Regulation 21, as amended, shall become
effective June 1, 2026.
Section 11. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utilities Rule and Regulation 22 (Special Gas Utility Regulations) is hereby amended as
attached and incorporated. Utility Rule and Regulation 22, as amended, shall become
effective June 1, 2026.
Section 12. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utilities Rule and Regulation 23 (Special Wastewater Utility Regulations) is hereby
amended as attached and incorporated. Utility Rule and Regulation 23, as amended, shall
become effective June 1, 2026.
Section 13. Pursuant to section 12.20.010 of the Palo Alto Municipal Code,
Schedule C-4 (Residential Rate Assistance Program) of the Palo Alto Utilities Rates and
Charges is hereby amended to read as attached and incorporated. The foregoing Utility
Rate Schedule, as amended, shall become effective July 1, 2026.
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Attachment A - Resolution
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ATTACHMENT A
Section 14. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code,
Utilities Rule and Regulation 15 (Metering Equipment) is hereby repealed as attached
and incorporated. Utility Rule and Regulation 15, as repealed, shall become effective
June 1, 2026.
Section 15. The Council finds that the fees and charges adopted by this
resolution are charges imposed for a specific government service or product provided
directly to the payor that are not provided to those not charged, and do not exceed the
reasonable costs to the City of providing the service or product.
Section 16. Council finds that the adoption of this resolution is statutorily exempt
from the California Environmental Quality Act (CEQA), pursuant to California Code of
Regulations Title 14, Chapter 3, Section 15273(a), because the fees and charges proposed
are necessary to recover the cost of providing utility service and meet operating expenses.
After reviewing the reports presented, the Council incorporates these documents herein
and finds that sufficient evidence has been presented setting forth with specificity the
basis for this claim of CEQA exemption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST: APPROVED:
____________________________ _________________________________
City Clerk Mayor
APPROVED AS TO FORM: _________________________________
City Manager
____________________________
Senior Deputy City Attorney
_________________________________
Director of Utilities
_________________________________
Director of Administrative Services
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Attachment B: Table of URLs
efinitions and
Abbreviations
Rule and
Regulation 2
/files/assets/public/v/1/agendas minutes
reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-02-definitions-and-
abbreviations.pdf
ription of Utility
Services
Rule and
Regulation 3
/files/assets/public/v/1/agendas minutes
reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-03-description-of-
utility services.pdf
Application for Service Rule and
Regulation 4
/files/assets/public/v/1/agendas minutes
reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-04-application-of-
utility services.pdf
vice Contracts Rule and
Regulation 5
/files/assets/public/v/1/agendas minutes
reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-05-service-
contracts.pdf
Disconnection,
Termination and
Restoration of Services
Rule and
Regulation 9
/files/assets/public/v/2/agendas minutes
reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-09-disconnection-
termination-and-restoration-of-service.pdf
Meters and Meter
Reading
Rule and
Regulation 10
/files/assets/public/v/1/agendas minutes
reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules and regulations/rr 10 reading.pdf
Billing, Adjustments and
Payment of Bills
Rule and
Regulation 11
/files/assets/public/v/1/agendas minutes
reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-11-billing-adjustments-
and-payments-of-bills.pdf
Utility Service and
Facilities on Customer
Premises
Rule and
Regulation 18
/files/assets/public/v/2/agendas minutes
reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-18-utility-service-
connections and facilities premis.pdf
Special Electric Utility
Regulations
Rule and
Regulation 20
/files/assets/public/v/1/agendas minutes
reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-20-special-electric-
utility regulations.pdf
Special Water Utility
Regulations
Rule and
Regulation 21
/files/assets/public/v/1/agendas minutes
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minutes/2026/june/rules-and-regulations/rr-21-special-water-
utility regulations.pdf
Special Gas Utility
Regulations
Rule and
Regulation 22
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reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-22-special-gas-utility-
regulations.pdf
Special Wastewater
Utility Regulations
Rule and
Regulation 23
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reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/rr-23-special-
wastewater-utility-regulations.pdf
Residential Rate
Assistance Program
Utility Rate
Schedule C-4
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reports/agendas-minutes/city-council-agendas-
minutes/2026/june/rules-and-regulations/utility-rate-schedule-c-4-
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CITY COUNCIL
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: June 1, 2026
Report #: 2603-6082
TITLE
Adoption of the Community Development Block Grant (CDBG) Fiscal Year (FY) 2026-2027
Annual Action Plan; and Approving Use of CDBG Funds for FY 2026-2027 as Recommended by
the Human Relations Commission. CEQA Status: Exempt under CEQA Guidelines Section
15378(b)(4).
RECOMMENDATION
The Human Relations Commission (HRC) and staff recommend City Council take the
following actions:
1. Adopt the draft Fiscal Year (FY) 2026-2027 Annual Action Plan (Attachment A) and
the associated resolution (Attachment B) allocating Community Development
Block Grant (CDBG) funding for FY 2026-2027;
2. Authorize the City Manager to execute the FY 2026-2027 CDBG application to fund
the FY 2026-2027 Annual Action Plan (AAP) and any other necessary documents
concerning the application, and to otherwise bind the City with respect to the
applications and commitment of funds;
3. Authorize staff to submit the FY 2026-2027 AAP to U.S. Department of Housing and
Urban Development (HUD) by the extended deadline of August 16, 2026.
EXECUTIVE SUMMARY
The CDBG Entitlement Program provides grants to entitled cities and counties to develop
viable urban communities by providing decent housing and a suitable living environment,
and by expanding economic opportunities. HUD requires entitlement jurisdictions to
prepare an Annual Action Plan (AAP) to allocate funding to specific projects within the fiscal
year timeframe (FY 2026-27). The City released a Notice of Funding Availability (NOFA) in
November 2025, requesting applications for the FY2026-27 funding cycle. The City received
a total of eleven (11) CDBG applications.
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On April 9, 2026, the HRC provided funding recommendations for the CDBG FY 2026-2027
funding cycle.1
It is not possible to fund all applications at the requested amounts due to the limitations of
available funds. However, the proposed recommendations:
Allocate all available CDBG program funds;
Are consistent with the City’s CDBG Consolidated Plan (ConPlan);
Are consistent with the City’s 6th Cycle Housing Element goals and programs as
they pertain to CDBG; and
Will result in funding key services and projects that benefit many low- and
very-low-income Palo Alto residents.
Staff recommends that City Council review and approve the 2026-2027 AAP (Attachment A),
the associated Resolution (Attachment B), and authorize staff to submit and execute
associated documents necessary to implement the FY 2026-2027 AAP.
BACKGROUND
The CDBG program, administered by HUD, provides annual grants on a formula basis to
states, cities, and counties to develop viable urban communities by providing decent
housing, a suitable living environment and by expanding economic opportunities,
principally for low- and moderate-income persons. The HUD regulations require all CDBG-
funded activities meet one of the three national objectives:
1. Benefit low- and very-low-income persons;
2. Aid in the prevention or elimination of slums or blight; or
3. Meet other community development needs having a particular urgency or
posing a serious and immediate threat to the health or welfare of the
community.
The City’s CDBG program has primarily been focused on meeting the first objective of
benefiting low- and very-low-income persons.
Consolidated Plan & Annual Action Plan
HUD requires preparation of a five-year strategic plan, referred to as a ConPlan, which must
address priority housing and community development needs and set goals related to those
needs. The CDBG program is currently guided by the FY 2025-29 ConPlan adopted by
Council on June 9, 2025. HUD also requires the submittal of an AAP, which must identify the
specific projects to be funded to implement strategies identified in the ConPlan.
The FY 2026–2027 AAP builds on a comprehensive assessment of affordable housing and
community development needs, shaped by public participation. Staff presented the draft
1 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=18927
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AAP to the HRC on April 9, 2026. It was also made available for a public review period
beginning May 1, 2026, through May 31, 2026, which constitutes the required 30-day
public review and comment period. Once adopted by City Council, the FY 2026-2027 AAP
will be effective July 1, 2026, through June 30, 2027.
ANALYSIS
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Program Income (PI) comes from loan repayments on specific properties acquired or
rehabilitated with CDBG funds. Cities are required to estimate anticipated program income
for the activity budget for the upcoming year. Based on past years, PI for FY 2026-2027 is
estimated to be $100,000.
Table 1. FY 2026-2027 CDBG Estimated Funds Available
CDBG Funds Available Available for Funding
FY 2026-2027 Entitlement Grant $512,139
Program Income in FY 2026-2027 (Estimated)$100,000
Estimated Total CDBG Funds Available for Allocation $612,139
Public Services (15% Cap) — The amount of any CDBG funds that may be obligated
toward Public Services during a program year is capped at 15 percent of the sum of
the grant allocation plus the total amount of prior year program income.
Planning & Administration (20% Cap) — The amount of any CDBG funds that
may be obligated toward Planning & Administration during a program year is
capped at 20 percent of the sum of the grant allocation plus the total amount of
prior year program income.
Table 2. FY 2026-2027 Breakdown of Capped/Un-Capped Funds
CDBG Amount
Public Services 15% Maximum
15% x [Grant allocation ($512,139) + program income ($100,000)]
$91,821
Estimated Planning and Administration 20% Maximum
20% x [Grant allocation ($512,139) + program income ($100,000)]
$122,428
Un-capped Funds $397,890
Estimated Total Available for CDBG Allocation $612,139
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CDBG 2026-27 Funding Allocations
Table 3: Fiscal Year 2026-2027 CDBG Budget
Applicant Agency Requested Funding Recommended
Allocation
CDBG Applicants
Public Services (15% Cap = $91,821)
LifeMoves – Case Management at Opportunity
Center $75,000 $30,500
Silicon Valley Independent Living Center (SVILC) –
Case Management Services $21,419 $15,750
Project Sentinel – Fair Housing Services $25,000 $16,250
Next Door Solutions to Domestic Violence $10,000 $6,500
Catholic Charities – Long Term Ombudsmen
Program $14,910 $6,500
La Comida – Food Assistance Program $28,000 $6,321
RotaCare Bay Area – Mobile Clinic $16,000 $4,500
YWCA – Services for Victims of Domestic Violence $24,500 $5,500
Subtotal $91,821
Economic Development (No Cap)
Upwards – Training for Family Child Care Home $72,000 $72,000
Subtotal $72,000
Housing Rehabilitation (No Cap)
Rebuilding Together Peninsula – Safe at Home $73,585 $73,585
Subtotal $73,585
Public Facilities & Improvements (No Cap)
Public Works – ADA Curb Improvements N/A*$172,335
Peninsula Healthcare – Facility Rehabilitation $79,970 $79,970
Subtotal $252,305
Planning & Administration (20% Cap = $122,428)
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Planning and Development Services – Program
Administration
N/A*$122,428
Subtotal $122,428
Grand Total for CDBG Budget $612,139
*“N/A” indicates that no formal application was submitted. These uncapped projects were previously awarded
funds, and additional funding was determined to be necessary through staff and HRC review based on
identified need.
FISCAL/RESOURCE IMPACT
There is no fiscal impact to the General Fund associated with this action as CDBG funding is
provided by HUD. The Community Development Block Grant Fund is a Special Revenue Fund
that recognizes revenue provided by Housing and Urban Development (HUD) and disburses
that revenue through grants to eligible recipients. These are restricted funds that can only
be used for eligible purposes as discussed above. Associated grant funding is also used to
support program administration for consultant services and liability insurance. If approved,
corresponding appropriation actions will be taken with, or following, the adoption of the FY
2026-FY 2027 budget.
STAKEHOLDER ENGAGEMENT
Prior to the submission of the FY 2026-2027 AAP to HUD, the City must hold two public
hearings on the draft FY 2026-2027 AAP and post the FY 2026-2027 AAP for a 30-day public
review and comment period.
The HRC meeting on April 9, 2026, served as the first public hearing.
The 30-day public review and comment period on the draft AAP began on May 1, 2026, and
ended on May 31, 2026. At the time of this report staff did not receive public comment on
the 2026-2027 AAP.
The City Council meeting on June 1, 2026, serves as the second public hearing for review
and approval of the FY 2026-2027 AAP.
To inform the public of the two public hearings and 30-day public review and comment
period, a public notice was published in the Palo Alto Daily Post on March 27, 2026.
ENVIRONMENTAL REVIEW
For the purposes of the National Environmental Policy Act (NEPA) and the California
Environmental Quality Act (CEQA), budgeting by itself is not a project. Prior to the
commitment or release of funds for each of the proposed programs, projects, and activities,
staff will carry out the required environmental reviews or assessments and certify that the
review procedures under HUD, NEPA, and CEQA regulations have been satisfied for each
activity.
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ATTACHMENTS
Attachment A: FY 2026-2027 Draft Annual Action Plan
Attachment B: Draft Resolution to Adopt FY 2026-2027 Annual Action Plan
APPROVED BY:
Jonathan Lait, Planning and Development Services Director
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City of Palo Alto
Draft FY 2026–2027 Annual
Action Plan
Community Development Block Grant (CDBG) Program
Prepared by: City of Palo Alto Planning & Development Services Department Draft for Public Review
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Executive Summary
AP-05 Executive Summary - 91.200(c), 91.220(b)
1.Introduction
The City of Palo Alto (City) Fiscal Year (FY) 2026-27 draft Annual Action Plan (AAP) contains the City’s
plan to carry out housing and community development activities funded by Federal formula grant funds
received from the U.S. Department of Housing and Urban Development (HUD), Community
Development Block Grant (CDBG) program. This AAP covers the second year of the City’s five-year
2025-2029 Consolidated Plan, which was adopted by the Palo Alto City Council on June 9, 2025. The
Planning and Development Services Department is the lead agency for the Consolidated Plan and
subsequent 5 Annual Action Plans for the City’s CDBG program.
The City’s FY 2026-27 AAP covers the time-period from July 1, 2026, to June 30, 2027. The FY 2026-27
AAP contains the accomplishments the City expects to achieve in FY 2026-27. All the projects, programs,
and activities in FY 2026-27 AAP reflect the 2025-2029 Consolidated Plan goals. CDBG-funded programs
and activities principally benefit City residents that have extremely low, low, and moderate- incomes
and/or populations that have special needs, such as the elderly, disabled, and homeless.
Entitlement community grantees may use CDBG funds for a range of eligible activities, including public
services, public facility and infrastructure improvements, housing rehabilitation, downpayment
assistance, tenant-based rental assistance, and job creation or retention efforts. These activities are
primarily intended to benefit HUD-defined low- and moderate-income (LMI) households. LMI households
are those with incomes at or below 80% of the Area Median Income (AMI), adjusted for household size.
Census block groups are generally considered eligible when at least 51% of households are LMI.
Primary Needs
The City of Palo Alto is a small Bay Area community known as the birthplace of Silicon Valley’s high-tech
industry. It is home to major companies and research institutions such as VMware and Hewlett-Packard,
and it also hosts Stanford University. According to the 2024 American Community Survey (ACS) 5-year
estimates, the City has a population of approximately 67,237 and covers roughly 25 square miles, making
it less densely populated than many peer entitlement jurisdictions.
Palo Alto is located within a region characterized by significant income diversity, including some of the
highest-earning households in the nation. The regional economy relies on a broad workforce that spans a
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wide range of income levels, including many lower-wage earners who support essential services and
industries. Lower-income residents face substantial challenges related to housing affordability, driven by
a highly competitive market and strong demand from higher-income households. Of the City’s 25,486
households, 43% of renters and 24% of homeowners experience housing cost burden—defined as paying
more than 30% of gross income toward housing—with some paying more than 50%.
Throughout the consultation process for this plan, stakeholders consistently emphasized the negative
impacts of high housing costs on the ability to recruit and retain workers in critical roles, including public
safety, education, and essential service positions across the region.
2.Summarize the objectives and outcomes identified in the Plan
This could be a restatement of items or a table listed elsewhere in the plan or a reference to another
location. It may also contain any essential items from the housing and homeless needs assessment, the
housing market analysis or the strategic plan.
Priority needs identified in this Annual Action Plan (AAP) include:
•Housing: Increasing the supply of affordable housing and improving the condition of existing units.
•Homelessness: Stabilizing people at-risk of and experiencing homelessness through housing
solutions, and facilitation of supportive services including mental health and addiction recovery
services.
•Community development: Enhance neighborhood safety and quality through cleanups, improved
street lighting and park improvements, bolster/create public space for senior activities, and food
pantries.
•Economic Development: Provide more opportunities for resident workforce development and/or
build outreach campaign for existing programs, create community partnerships to address
childcare access as a component of workforce participation.
•Fair Housing: Improve navigation and case management services for residents needing housing,
legal services (related to housing), and basic services documentation assistance.
Palo Alto has therefore identified the following goals for the FY2026-27 AAP through extensive data
analysis and community outreach:
1.Increase the supply and improve the condition of affordable housing for households with incomes
ranging from 0-80% AMI.
2.Respond to homelessness and risk of homelessness through housing stabilization, supportive
services, mental health services, and economic resiliency programs.
3.Strengthen neighborhoods through investing in infrastructure and public facility improvements
that prioritize safety, accessibility, and community building.
4.Support projects that increase opportunities for workforce development.
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5.Provide supportive services to low-income households through bolstering case management and
navigation of services including legal assistance and tenant/landlord resolution.
3.Evaluation of past performance
The City is responsible for ensuring full compliance with all rules and regulations governing the CDBG
entitlement grant program. The City’s Annual Action Plans and CAPERs have documented the goals,
projects, and programs completed over the past five years. A review of past CAPERs demonstrates a robust
performance record in the use of CDBG funds. Palo Alto has been strategic in leveraging federal dollars
and cultivating community partnerships to maximize program impact. For example, an analysis of the
2020–2024 CAPERs show:
•LMI elderly assisted: 711
•Residents who received counseling services: 672
•Homeless individuals who received shelter or assistance: 863
•Individuals that received housing complaint services: 82
•Persons with disabilities that received assistance: 6,771
•LMI homeowners that received home improvements: 19
•Workforce development program assistance: 51
4.Summary of Citizen Participation Process and consultation process
[Palo Alto held a Human Relations Commission public meeting on 4/9/26 to review proposed CDBG
awardees in FY2026-27. The 30-day comment period notice was posted in the Daily Post on 3/27/26 to
inform residents of the AAP public comment period that will run from 5/1 to 5/31. City Council will hold
a public hearing to adopt the FY2026-27 AAP on 6/1/26.]
5.Summary of public comments
[Any comments received during 30-day comment period will be summarized here]
6.Summary of comments or views not accepted and the reasons for not accepting them
[Not applicable. All comments were accepted. The City attempted to incorporate feedback received from
outreach efforts throughout the process.]
7.Summary
This 2026–2027 AAP reflects resident feedback, demographic analysis, community stakeholder input, and
an assessment of City resources, goals, and relevant plans and policies.
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PR-05 Lead & Responsible Agencies - 91.200(b)
1. Agency/entity responsible for preparing/administering the Consolidated Plan
The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant
program and funding source.
Agency Role Name Department / Agency
Table 1 – Responsible Agencies
Narrative
The City of Palo Alto serves as the Lead and Responsible Agency for the U.S. Department of Housing and Urban Development’s (HUD) entitlement
programs within the City.
The Department of Planning and Development Services administers the City’s Community Development Block Grant (CDBG) program. In addition,
the City joined the HOME Consortium in 2015 and receives federal HOME Investment Partnerships Program (HOME) funds through Santa Clara
County.
Consolidated Plan Public Contact Information
Leif Christiansen, Senior Housing Specialist
City of Palo Alto Department of Planning and Development Services
250 Hamilton Avenue, 5th Floor
Palo Alto, CA 94301
Phone: (650) 329-2195
Email: leif.christiansen@paloalto.gov
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AP-10 Consultation - 91.100, 91.200(b), 91.215(l)
1. 1. Introduction
Public participation plays a vital role in the development of the Consolidated Plan and Annual Action Plans.
Palo Alto coordinated closely with Santa Clara County and other entitlement jurisdictions in stakeholder
consultation and resident engagement to leverage opportunities and minimize duplication. Community
outreach for this planning period included the following:
• A Consolidated Plan website—www.letstalkhousingscc.org—with information about the Planning
process including a short video and presentation; a link to the resident survey and activities to
prioritize housing and community development needs; and community resources. The website
contains a translation feature for easy conversion into multiple languages.
• A community survey, available between October and December 2024, and promoted through
supportive service and public agencies that work with low- and moderate-income residents, city
social media, and the Consolidated Plan website. A summary of survey findings is below.
• Two virtual regional workshops open for all residents living in and stakeholders serving residents
in the county. The workshops included a brief overview about the Planning process, simple
activities to express priority needs, and in-depth discussions about needs in breakout rooms.
Interpretation was available in Spanish, Vietnamese, and Mandarin.
• Three focus groups with stakeholders in housing, supportive services, and community
development serving residents throughout the county. After a brief presentation about the
Consolidated Plan process—including information on how to circulate the survey and
letstalkhousingscc.org website to client-stakeholders participated in in-depth discussion about
priority needs and solutions to needs. Attendees represented affordable housing developers,
nonprofit housing rehabilitation providers, unhoused service providers, community organizations
and advocates for special needs populations, people with lived experience, legal advocates,
childcare service providers, and public housing staff.
• One-on-one interviews with the Continuum of Care and coordination with the City of San Jose,
who receives HOPWA and ESG funding and distributes that funding to the County’s public service
departments.
• A complete survey analysis and overview of engagement is provided in the appendix of this plan.
Engagement Promotion.
City Staff promoted the Consolidated Plan engagement opportunities through a multi-channel outreach
strategy. This included targeted email announcements, updates posted on the City’s website and official
social media platforms, and in-person outreach at community events such as local festivals and farmers’
markets.
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Provide a concise summary of the jurisdiction’s activities to enhance coordination between
public and assisted housing providers and private and governmental health, mental health and
service agencies (91.215(l)).
During the development of its Consolidated Plan and Annual Action Plans—and as part of its ongoing
practices—the City coordinated with a wide range of housing, public health, mental health, and social
service agencies to discuss community needs. These discussions provided opportunities for agencies to
network, share information about their programs, and identify areas of collaboration. Their collective
feedback was especially valuable in shaping the priorities of this Plan, particularly regarding special needs
populations and general and mental health services within the City and Santa Clara County.
The City also participates in the County’s quarterly CDBG Coordinators Group meetings, where
entitlement jurisdictions across the region convene to discuss proposed uses of federal funds for the
upcoming program year.
In addition, the City takes part in the County’s Regional Housing Working Group, a forum for both
entitlement and non-entitlement jurisdictions to coordinate responses to regional housing challenges.
The City is represented on the Continuum of Care (CoC) by its Human Services Manager. The CoC is a
broad coalition of stakeholders committed to preventing and ending homelessness in Santa Clara County.
Its key responsibilities include ensuring community-wide implementation of strategies to address
homelessness and monitoring both programmatic and system-level effectiveness.
Describe coordination with the Continuum of Care and efforts to address the needs of
homeless people (particularly chronically homeless individuals and families, families with
children, veterans, and unaccompanied youth) and people at risk of homelessness.
The Santa Clara County Office of Supportive Housing serves as the administrator of the regional
Continuum of Care (CoC). The City maintains ongoing coordination with the County CoC to support efforts
to prevent and end homelessness, and City staff participate in monthly CoC meetings. The Santa Clara
County CoC includes a broad range of stakeholders, including governmental agencies, homeless service
and shelter providers, individuals with lived experience of homelessness, housing advocates, affordable
housing developers, and representatives from the private and philanthropic sectors.
The City’s Human Services Manager represents Palo Alto on the CoC Board. The CoC meets monthly to
plan programs, identify gaps in the homeless services system, establish funding priorities, and advance a
coordinated, systems-level approach to addressing homelessness. City staff also meet and consult
regularly with County CoC staff and peers from other jurisdictions through the quarterly countywide CDBG
Coordinators Group meetings, with additional communication occurring as needed by email or phone.
The CoC is governed by the CoC Board, which uses a system-change framework to guide regional strategies
to prevent and end homelessness. The Board is composed of the same members who serve on the
Destination: Home Leadership Board. Destination: Home, a public-private partnership focused on
collective-impact strategies to end chronic homelessness, serves as the governing body for the CoC and is
responsible for implementing its bylaws and operational protocols.
Regional CoC efforts include the development of the Community Plan to End Homelessness, which
outlines strategies to address the needs of individuals and families experiencing homelessness—including
chronically homeless households, families with children, veterans, and unaccompanied youths as well as
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those at risk of homelessness. The CoC is currently updating its five-year strategic plan, and the City will
participate in this regional planning process.
During the development of the Consolidated Plan, the City consulted with the CoC and the County Office
of Supportive Housing to help identify community needs. The City also invited service providers and
organizations serving people experiencing or at risk of homelessness to participate in Consolidated Plan
and Annual Action Plan engagement meetings. These organizations included Abode Services, which
administers tenant-based rental assistance; Destination: Home, which leads regional homelessness
prevention and policy efforts; and LifeMoves, a shelter and homeless services provider operating in San
José and Palo Alto. Destination: Home also provided input through a phone interview to help identify
needs among homeless and at-risk populations.
Describe consultation with the Continuum(s) of Care that serves the jurisdiction’s area in
determining how to allocate ESG funds, develop performance standards for and evaluate
outcomes of projects and activities assisted by ESG funds, and develop funding, policies and
procedures for the operation and administration of HMIS
The Santa Clara County Office of Supportive Housing serves as the administrator of the regional Homeless
Management Information System (HMIS). The County and its consultant, Bitfocus, jointly operate and
oversee the HMIS, with Bitfocus providing both the software platform and system administration. HMIS
in Santa Clara County is funded by HUD, the County of Santa Clara, and the City of San José. The system is
used by many service providers throughout the region, including those serving Palo Alto, to record client
information and report program outcomes.
2. Agencies, groups, organizations and others who participated in the process and
consultations
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1 Agency/Group/Organization Catholic Charities of Santa Clara County
Agency/Group/Organization Type Services - Housing
Services-Children
Services-Elderly Persons
Services-Persons with Disabilities
Services-homeless
Services-Health
Services-Employment
What section of the Plan was addressed by Consultation?
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or
A representative from Catholic Charities of Santa Clara County
participated in the November 14, 2025 NOFA Kickoff meeting.
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2 Agency/Group/Organization LifeMoves
Agency/Group/Organization Type Housing
Services - Housing
Services-Children
Services-Health
What section of the Plan was addressed by Consultation?
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or
A representative from LifeMoves participated in the November 14, 2025
NOFA Kickoff meeting
Agency/Group/Organization
Agency/Group/Organization Type
Services-Victims of Domestic Violence
What section of the Plan was addressed by Consultation?
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or
A representative from Next Door Solutions to Domestic Violence
participated in the November 14, 2025 NOFA Kickoff meeting
Agency/Group/Organization
Agency/Group/Organization Type
Service-Fair Housing
What section of the Plan was addressed by Consultation?
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or
A representative from Project Sentinel participated in the November 14,
2025 NOFA Kickoff meeting
Agency/Group/Organization
Agency/Group/Organization Type
Services-Elderly Persons
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What section of the Plan was addressed by Consultation? Housing Need Assessment
Non-Homeless Special Needs
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or
A Silicon Valley Independent Living Center representative attended the
November 14, 2025 NOFA Kickoff meeting
Agency/Group/Organization
Agency/Group/Organization Type
What section of the Plan was addressed by Consultation?
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or
A representative from Upwards attended the December 11th, 2024
Stakeholder Workshop.
Agency/Group/Organization
Agency/Group/Organization Type
What section of the Plan was addressed by Consultation?
How was the Agency/Group/Organization consulted and
what are the anticipated outcomes of the consultation or
A representative from Rebuilding Together participated in the
November 14, 2025 NOFA Kickoff meeting
Table 2 – Agencies, groups, organizations who participated
Identify any Agency Types not consulted and provide rationale for not consulting
Not applicable. No agency types were intentionally left out of the consultation process. Over 40 agency types were contacted during the
consultation process. Details of these efforts are within the Consolidated Plan.
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Other local/regional/state/federal planning efforts considered when preparing the Plan
Continuum of Care Regional Continuum of
Care Council,
Destination: Home
experiencing homelessness.
End Homelessness governmental actors, nonprofits, and other community members as they make decisions
about funding, programs, priorities and needs. This effort aligns with the Strategic Plan's
goal to support activities to end homelessness.
Work Annual Plan Housing Authority vouchers.
Table 3 - Other local / regional / federal planning efforts
Describe cooperation and coordination with other public entities, including the State and any adjacent units of general local
government, in the implementation of the Consolidated Plan (91.215(l))
The Consolidated Plan was developed in close coordination with jurisdictional partners throughout Santa Clara County. The Santa Clara County
Office of Supportive Housing (OSH) initiated this collaborative effort in spring 2024 by convening all entitlement jurisdictions. Together, the
jurisdictions issued a joint RFP to select a consultant team to prepare the plans. Participating in entitlement jurisdictions included Cupertino, Gilroy,
Milpitas, Mountain View, Palo Alto, the City of Santa Clara, Sunnyvale, and the Urban County.
Collaboration on stakeholder engagement and resident participation began with a joint meeting to review the proposed engagement strategy.
Each jurisdiction contributed lists of priority stakeholders and organizations to streamline outreach and avoid duplication. Regional engagement
activities included two virtual evening open houses for residents and stakeholders, three stakeholder consultation workshops held on different
days and times in December, and a joint community survey that was widely promoted across jurisdictions.
The jurisdictions also collaborated on a regional housing market assessment, which included jurisdiction-level data to support consistent
comparisons of housing needs and ensure uniform market information across all plans.
The Association of Bay Area Governments (ABAG) was invited to participate in a meeting focused on regional housing and community development
needs. ABAG provided relevant reports and data for incorporation into the Consolidated Plans.
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In addition, the County hosts regular CDBG Coordinators Group and Regional Housing Working Group meetings, which jurisdictions attend. These
meetings provide a forum to discuss projects serving homeless and special-needs populations, pending legislation, and local initiatives affecting
affordable housing and services for lower-income households. Jurisdiction staff also support the countywide biennial Homeless Census, which
identifies homeless populations across the region and informs strategies and service priorities to address their needs.
Narrative
N/A
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AP-12 Participation - 91.401, 91.105, 91.200(c)
1. 1. Summary of citizen participation process/Efforts made to broaden citizen participation
Summarize citizen participation process and how it impacted goal setting
Engagement that was done in coordination with the County and was targeted to residents included:
•A Consolidated Plan website—www.letstalkhousingscc.org—with information about the Planning process including a short video and
presentation; a link to the resident survey and activities to prioritize housing and community development needs; and community
resources. The website contains a translation feature for easy conversion into multiple languages.
•A community survey, available between October and December 2024, and promoted through supportive service and public agencies
that work with low- and moderate-income residents, city social media, and the Consolidated Plan website.
•Two virtual regional workshops open to all residents living in Santa Clara County and stakeholders serving residents in the county. The
workshops included a brief overview about the Planning process, simple activities to express priority needs, and in-depth discussions
about needs in breakout rooms. Interpretation was available in Spanish, Vietnamese, and Mandarin.
•Public hearings: Two public hearings were held to solicit community feedback and review funding recommendations and plan content.
One hearing was conducted with the City’s Human Relations Commission, and the second with the Palo Alto City Council.
•Public comment on the 2025-2029 Consolidated Plan was open from May 5, 2025 through June 4, 2025. A link to the Consolidated Plan
draft document was provided on the Letstalkhousingscc.org website and on the City of Palo Alto website.
A full survey analysis and summary of resident engagement activities is included in the appendix of this plan. The survey was distributed by all
participating entitlement jurisdictions and made available on the Let’s Talk Housing website, individual city websites, and in printed form—
offered in both English and Spanish—at community events.
From the North County area, 876 residents completed the survey, including 79 respondents who also identified as stakeholders working in
various housing and community development roles.
Survey respondents were asked to identify their priority housing, community development, and economic development outcomes. The results
below reflect responses from Palo Alto residents only, ranked by frequency of selection:
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•The top housing outcomes were more affordable rental housing and supportive housing for the unhoused (both at 35%), followed by
more affordable homeownership (29%), increased shelter capacity (26%), and security deposit assistance for low to moderate income
renter households (24%);
•The top community development outcome in Palo Alto was affordable childcare (41%), followed by supportive services for the unhoused
(38%), access to reliable public transit (35%), supportive services for low-income residents, people living with disabilities (32%), and
mental health services (26%);
•The top economic development outcome selected by respondents in Palo Alto was job training programs (62%), followed by
revitalization of neighborhood businesses/commercial areas (47%), improved transportation to areas with job opportunities (41%), more
opportunities for small or start-up businesses 41%), and center for seasonal and day laborers (35%).
Citizen Participation Outreach
1 Public
Meeting targeted/broad
community
of Human Relations
Commission to
review proposed
received] received]
Ad targeted/broad
community
period notice posts
5/1, for 5/1 to 5/31
received] received]
Outreach targeted/broad
community
Action Plan available
for public review
received] received]
Public
Hearing
targeted/broad
community
Council held a public
hearing to adopt 26-
27 Annual Action
received] received]
Table 4 – Citizen Participation Outreach
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Expected Resources
AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2)
Introduction
In FY 2026-27, the City will allocate a total of $612,139 CDBG funds to eligible activities that address the needs identified in the Consolidated
Plan. These CDBG funds reflect the sum of a $512,139 FY2026-27 Entitlement Grant and $100,000 Program Income (estimated) to be
receipted in FY 2025-26. The City acknowledges that program income receipts may vary and endeavors to forecast future income while
implementing necessary adjustments to the ongoing program budget. It should be noted that while the HUD CDBG allocations are critical, the
allocations are not sufficient to overcome barriers and address all needs that low- income individuals and families face in attaining self-
sufficiency. The City efforts include leveraging local county, regional, state, and federal funds estimating $5.3 million, that align with goals
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outlined in the Consolidated Plan.
Anticipated Resources
CDBG public -
federal Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services 512,139.00 100,000.00 0.00 612,139.00 1, 500,000.00
creation and preservation of
affordable rental units,
improvements in low-income
neighborhoods, and public
services that benefit low-income
and special needs households.
Table 5 - Expected Resources – Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how
matching requirements will be satisfied
Other State and Federal Grant Programs
Additional federal programs that fund community development and affordable housing activities include:
•Section 8 Housing Choice Voucher Program;
•Section 202;
•Section 811; and
•Affordable Housing Program (AHP) through the Federal Home Loan Bank.
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These programs would not be provided to the City but rather to the Santa Clara County Housing Authority (SCCHA) and affordable housing
developers.
County and Local Housing and Community Development Sources
HOME funds can be used to fund eligible affordable housing projects for acquisition, construction, and rehabilitation. The City joined the Santa
Clara County HOME Consortium in 2015 and does not receive federal HOME funds on an entitlement basis from HUD. The HOME Consortia
consists of the cities of Cupertino, Gilroy, Palo Alto, and the Urban County. Developers of affordable housing projects are eligible to
competitively apply through an annual request for proposal process directly to the County for HOME funds to help subsidize affordable housing
projects in Palo Alto. If the City receives HOME dollars from this process, the City is required to provide a 25 percent match, which will be
provided by the City’s Affordable Housing Fund. Certain non-profit organizations known as Community Housing Development Organizations
(CHDOs) may also apply for funding from the State Department of Housing and Community Development for housing projects located within
Palo Alto.
Other local resources that support housing and community development programs include:
•Palo Alto Commercial Housing Fund, which is for the development of workforce units and paid by mitigation fees on commercial and
industrial projects; and
•Palo Alto Residential Housing Fund, which is for the development of below market rate (BMR) housing units and paid by miscellaneous
funding sources.
The City will continue to seek opportunities for projects that meet local bond requirements in order to bring additional resources to help the
City’s affordable housing shortage.
If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs
identified in the plan
The City of Palo Alto's 2023–2031 Housing Element includes a strategic initiative to redevelop city-owned surface parking lots, particularly in the
downtown area, to support affordable housing development. This approach aims to utilize underutilized public land to meet the city's housing
goals. The City plans to issue requests for information (RFIs) to explore public-private partnerships for redevelopment, conduct parking studies
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to assess current usage, and evaluate opportunities for reconfiguring or replacing parking as needed. A schedule of actions will be developed to
guide implementation, with clear milestones to ensure accountability and progress toward the City's RHNA goals.
Discussion
HUD allocations are critical to overcoming barriers; however, they are not sufficient to address all the needs of LMI households. Therefore, the
City will continue to leverage other funding sources to provide services to populations in need.
Currently, the City is not eligible to receive direct funding under the HOME Investment Partnership Act, Emergency Solutions Grant, or Housing
Opportunities for Persons with AIDS.
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Annual Goals and Objectives
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e)
Goals Summary Information
Affordable housing
supply and
condition
Housing Housing $73,585.00 rehabilitated: 5 units
2
Homelessness and
Risk of
Homelessness
$35,000.00 other than Low/Moderate
Income Housing Benefit:
450 Persons Assisted
3
Neighborhoods Special Needs
Non-Housing
Community
Development
Services and
Public
Improvements
$396,983.15 other than Low/Moderate
Income Housing Benefit: 74
Persons Assisted
Public Facility or
Infrastructure Activities
other than Low/Moderate
Income Housing Benefit:
6,681 Persons Assisted
Other: 2 Other
4
Opportunities for
Workforce
Development
Community
Development
Development $72,000.00 businesses
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Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
5 Supportive Services
for Low Income
Households
Special Needs
Non-Housing
Community
Development
Services and
Public
Improvements
Tenant Assistance
Services
$34,570.85 other than Low/Moderate
Income Housing Benefit:
112 Persons Assisted
Table 6 – Goals Summary
Goal Descriptions
1 Goal Name Affordable housing supply and condition
Goal
Description
Assist in the creation and preservation of affordable housing for low-income and special needs households.
2 Goal Name Respond to Homelessness and Risk of Homelessness
Goal
Description
Prevent and end homelessness, such as funding affordable housing opportunities, resource centers for homeless
individuals, and support for tenants of single-room occupancy units.
3 Goal Name Strengthen Neighborhoods
Goal
Description
Provide community services and public improvements to benefit low-income and special needs households. This includes
assisting those with disabilities to transition from unstable housing to permanent housing, supporting residents of long-
term care facilities, and supporting individuals experiencing domestic violence.
4 Goal Name Increase Opportunities for Workforce Development
Goal
Description
Support economic development activities that promote employment growth and help lower-income people secure and
maintain jobs. This includes funding nonprofits working toward developing the skills of low-income and homeless
individuals.
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5 Goal Name Supportive Services for Low Income Households
Goal
Description
Provide supportive services to low-income households through bolstering case management and navigation of services
including legal assistance and tenant/landlord resolution.
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AP-35 Projects - 91.420, 91.220(d)
Introduction
The Consolidated Plan goals represent high priority needs for the City of Palo Alto and serve as the basis for the strategic actions the City
undertakes to meet these needs.
# Project Name
Table 7 – Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
The City awards CDBG funding to projects and programs that primarily benefit low-income, homeless, and special needs households. Projects
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are only considered for funding within the Consolidated Plan period if they address the goals cited in the plan.
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AP-38 Project Summary
Project Summary Information
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1 Project Name 2026 Project Sentinel - Fair Housing Services
Target Area Citywide
Goals Supported Supportive Services for Low Income Households
Needs Addressed Community Services and Public Improvements
Funding CDBG: $16,250.00
Description Fair Housing Services. Eligible Activity (Matrix Code): O5J, Fair Housing Activities CDBG National
Objective: LMC 24 CFR 570.208(a)(2)
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
12 unduplicated low and moderate income individuals will be provided with fair housing services of
complaint counseling, investigation, and where appropriate enforcement referral.
Location Description Citywide
Planned Activities Project Sentinel will provide comprehensive fair housing services of investigation, counseling, and legal
referrals for victims of housing discrimination; community education and outreach regarding fair
housing law; and analyses for City staff and officials regarding fair housing practices and trends. We
provide proactive fair housing education to housing providers to avoid costly violations and reactive
enforcement investigations when violations are alleged.
2 Project Name 2026 Upwards
Target Area Citywide
Goals Supported Increase Opportunities for Workforce Development
Needs Addressed Economic Development
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Funding CDBG: $72,000.00
Description WeeCare/Upwards assists Family Childcare Home microenterprise businesses and will provide business
improvement services to such businesses in the City. Eligible Activity (Matrix Code): 18C Economic
Development: Micro-Enterprise Assistance. CDBG National Objective LMC
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
9 daycare microenterprises will benefit from this project.
Location Description Citywide
Planned Activities WeeCare/Upwards is a for-profit organization. Project activities would support their specific BOOST
program for low-income Family Child Care Home (FCCH) providers in Palo Alto. The BOOST program
provides specialized technical assistance and business support for income qualifying FCCH’s. Training
includes the utilization of the Child Management System (CCMS), aimed at helping providers create
work plans, set goals, enhance capacity, and generate revenue to achieve service and operational
objectives. The BOOST program addresses various aspects such as family matching, children's program
enrollment, tuition collection, weekly curriculum, licensing regulations, program expansion, and staff
recruitment. The intent is to assist small businesses in implementing best practices for organizational
growth and sustainability, ultimately supporting low to moderate-income families served by FCCH.
3 Project Name 2026 Rebuilding Together Peninsula - Safe at Home
Target Area Citywide
Goals Supported Affordable housing supply and condition
Needs Addressed Affordable Housing
Funding CDBG: $73,585.00
Description Eligible Activity (Matrix Code): 14A, Objective LMH
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Estimate the number and
type of families that will
benefit from the proposed
activities
5 LMI households will benefit from home improvements.
Location Description Citywide
Planned Activities RTP project activities preserve affordable housing by transforming homes at no cost to the service
recipient. The majority of the low-income homeowners served will be elderly seniors and/or people
with disabilities, who are physically and/or financially unable to maintain safe living conditions for
themselves and their families. Funding covers the costs of home repair, such as construction materials
and payment of subcontractors.
4 Project Name 2026 SVILC Case Management
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements
Funding CDBG: $15,750.00
Description Case Management. Eligible Activity (Matrix Code): 05B, Handicapped Service, Objective LMC
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
24 unduplicated Palo Alto residents will benefit from one-on-one housing assistance.
Location Description Citywide
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Planned Activities The Housing Assistance and Emergency Services for Persons with Disabilities program assists very low-
income Palo Alto residents with disabilities or chronic health conditions and their families in their
housing search for affordable, accessible housing. The program provides education and training on all
aspects of how to conduct a housing search to transition from homelessness, health care facilities, or
unstable, temporary housing into safe, long-term community-based housing. It includes group
workshops, one-on-one service training, and access to IL (Independent Living) services, including
emergency food assistance, security deposits/rent (as available funding allows), information, and
referral, to ensure long-term sustainability of housing.
5 Project Name 2026 Next Door Solutions to Domestic Violence
Target Area Citywide
Goals Supported Supportive Services for Low Income Households
Needs Addressed Community Services and Public Improvements
Funding CDBG: $6,500.00
Description Eligible Activity (Matrix Code): 05G, Services for victims of domestic violence, Objective LMC
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
20 unduplicated Palo Alto residents will benefit from client centered services.
Location Description Citywide
Planned Activities Assist Palo Alto residents identifying as victims/survivors of domestic/intimate partner violence (DV) will
receive client-centered services through Community Support Advocacy: crisis intervention counseling,
risk assessment, safety planning, legal advocacy and attorneys, restraining order assistance, case
management, other support services through walk-in or virtual; Support Groups; Emergency Shelter and
24/7 Crisis Hotline.
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6 Project Name 2026 Catholic Charities Long Term Care Ombudsman Program
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements
Funding CDBG: $6,500.00
Description Eligible Activity (Matrix Code): 05A, Senior Services, Objective: LMC
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
The program will provide advocacy and complaint investigation for 50 elderly residents of long-term
care facilities in Palo Alto.
Location Description Citywide
Planned Activities Catholic Charities’ Long-Term Care Ombudsman Program (LTCOP) project activities include regular
contact with Palo Alto Residential Care Facilities to observe and monitor conditions of care and handle
and resolve issues regarding residents’ rights, unmet needs, allegations of abuse, and complaints
effectively, thus promoting resident well-being.
7 Project Name 2026 LifeMoves Case Management
Target Area Citywide
Goals Supported Respond to Homelessness and Risk of Homelessness
Needs Addressed Homelessness
Funding CDBG: $30,500.00
Description Eligible Activity (Matrix Code): 03T, Operating Costs of Homeless/AIDS Patients Programs, Objective
LMC
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Estimate the number and
type of families that will
benefit from the proposed
activities
350 unduplicated individuals (homeless and/or very low-income individuals per year) will receive case
management services, including assistance with housing/job searches, referrals, and mentoring
Location Description Citywide
Planned Activities LifeMoves project activities include continuing and expand case management and supportive day
services for individuals experiencing homelessness in Palo Alto at the Opportunity Services Center
(OSC), in alignment with the City of Palo Alto’s Consolidated Plan and funding priorities. The project will
provide intensive, client-centered case management to support participants in accessing permanent
housing, increasing income and benefits, and achieving long-term self-sufficiency. In addition, the OSC
will offer essential day services including food, clothing, shower(s), and laundry (dryer) that address
immediate basic needs, reduce barriers to engagement, and provide a stable point of access to housing-
focused services for unsheltered and highly vulnerable residents.
8 Project Name 2026 RotaCare Bay Area Mobile Clinic
Target Area Citywide
Goals Supported Respond to Homelessness and Risk of Homelessness
Needs Addressed Homelessness
Funding CDBG: $4,500.00
Description Eligible Activity (Matrix Code): 03T: Homeless Programs, Objective LMC
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
100 individuals assisted
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Location Description Citywide
Planned Activities This project provides free, accessible medical services to under and uninsured individuals to reduce
barriers to essential care. Services will be delivered through our RotaCare Rotary Mobile Medical Clinic,
with follow up care available at our San Jose clinic when the unit is not deployed within the Palo Alto
area to ensure continuity of care. Project activities include adult primary care such as evaluation of
acute medical concerns and preventative health services, along with prescription refills and laboratory
testing at Quest Diagnostics. The project will also provide referrals for imaging studies, specialist
consultations, diabetic retinal screening, and connections to additional community resources. Diabetic
patients will have access to diabetic self-management classes to support long term health outcomes.
9 Project Name 2026 YWCA
Target Area Citywide
Goals Supported Supportive Services for Low Income Households
Needs Addressed Community Services and Public Improvements
Funding CDBG: $5,500.00
Description Eligible Activity (Matrix Code): 05G, Services for Victims of Domestic Violence, Objective LMC
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
40 individuals assisted
Location Description Citywide
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Planned Activities YWCA Golden Gate Silicon Valley (YWCA GGSV) provides essential domestic violence (DV) services,
including a 24-hour English & Spanish Support Line (250+ additional languages through interpretation
service), crisis counseling and support groups for adults and children, emergency shelter and housing
services, over the phone response to law enforcement calls, personal advocacy, individual therapy,
transportation, criminal justice and social services advocacy, temporary restraining orders, court
accompaniment, household establishment assistance, children’s programming, and workforce
development services. Our services are survivor-centered, trauma-informed, culturally responsive, and
coordinated.
10 Project Name 2026 Planning and Administration
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Affordable Housing
Homelessness
Community Services and Public Improvements
Tenant Assistance Services
Economic Development
Funding CDBG: $122,427.80
Description Eligible Activity (Matrix Code): 21A, General Program Administration Planning and Administration
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
The City will provide general administrative support to the CDBG program.
Location Description Citywide
Planned Activities CDBG program administration
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11 Project Name 2026 ADA Curb Ramps
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements
Funding CDBG: $172,335.35
Description Eligible Activity (Matrix Code): 03L, Sidewalks, Objective LMC
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
6,681 severely disabled adults assisted
Location Description Citywide
Planned Activities This Public Works project will provide ADA curb ramps within the City for the benefit of severely
disabled adult residents.
12 Project Name 2026 Peninsula Healthcare Connection Rehabilitation
Target Area Citywide
Goals Supported Strengthen Neighborhoods
Needs Addressed Community Services and Public Improvements
Funding CDBG: $79,970.00
Description Eligible Activity (Matrix Code): 03E, Neighborhood Facilities, Objective LMC
Target Date 6/30/2027
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Estimate the number and
type of families that will
benefit from the proposed
activities
TBD once completed
Location Description Citywide
Planned Activities This project will refurbish and transform PHC’s newly acquired house at 51 Encina Avenue into a
dedicated facility for behavioral health, therapy, and addiction treatment services. This historic
property, located in the heart of Palo Alto, presents an opportunity to expand essential healthcare
services for our unhoused, low-income, and undocumented neighbors. Funding requested here is
focused on pre-construction phase activities.
13 Project Name 2026 La Comida Food Assistance
Target Area Citywide
Goals Supported Supportive Services for Low Income Households
Needs Addressed Community Services and Public Improvements
Funding CDBG: $6,320.85
Description Eligible Activity (Matrix Code): 05W, Food Banks, Objective LMC
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
40 individuals assisted
Location Description Citywide
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Planned Activities La Comida provides healthy meals, resources, and a warm environment each weekday. We will also
engage and energize Palo Alto residents to support and volunteer for senior needs, causes, and
projects. This project will support the needs of the growing population of seniors who are now
accessing the services of La Comida.
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AP-50 Geographic Distribution - 91.420, 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where
assistance will be directed
The City allocates CDBG funds to benefit low-moderate income (LMI) households and does not have any designated target areas. Instead, the
City focuses CDBG funds on public services, housing preservation, economic development-business assistance, and capital improvements across
the City as a whole.
Geographic Distribution
Citywide 100
Table 8 - Geographic Distribution
Rationale for the priorities for allocating investments geographically
N/A
Discussion
N/A
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AP-75 Barriers to affordable housing -91.420, 91.220(j)
Introduction
The City of Palo Alto is committed to providing equitable opportunities to all residents of Palo Alto in order to expand access to housing and
increase housing mobility. The City will take action to overcome patterns of segregation, address disparities in housing needs and access to
opportunity, and foster inclusive communities. The City’s Housing Element contains a list of actions established to reduce the barriers to
affordable housing, including but not limited to racial inequities, high housing and land costs, regulatory constraints, and public resistance.
Currently the City is experiencing a constrained housing supply market, so when housing developments produce housing units that are
considered “relatively” affordable, higher-income buyers and renters outbid lower-income households. Subsequently, a home’s final sale or
rental price may exceed the projected sales or rental costs. Public subsidies are often needed to guarantee affordable homes for low- and
moderate-income households.
The City wants to ensure adequate planning is undertaken to provide its “fair share” of affordable and market-rate housing, demonstrating a
strategy for removing barriers to increase housing production that addresses today’s housing shortage.
To address the requirements of AB 686, the City participated in the 2025-30 Santa Clara County Consolidated Plan (ConPlan). The County’s
ConPlan identifies five goals for the County and each of its participating jurisdictions, including Palo Alto. Additionally, the ConPlan identifies
regional and local barriers to fair housing around the region, with heavy emphasis on racial and economic disparity, land use and zoning, and
lack of assistance and resources. Programs were identified to reduce barriers in the City, including adjusting zoning amendments to expand
affordable and alternative housing opportunities and increasing accessibility to information.
Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such
as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and
policies affecting the return on residential investment
Palo Alto is addressing the barriers to affordable housing through:- Density Bonus Ordinance: City lowered eligibility requirements, allowing up
to an 80% density bonus and provided more exceptions to applicable zoning and development standards. Notably, if 100% affordable
development is within half a mile of a major transit stop, City cannot impose any density limits and is entitled to a maximum height increase of
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three additional stories or 33 feet.
-Remove Density requirements in certain zoning districts.
-Below Market Rate (BMR) Housing Program: 1974 Developers must allocate a percentage of units as BMR housing in approved project of 3 units
or more. The program originally required that for developments on sites of less than 5 acres, the developer must provide 15% of the total
housing units as BMR housing units. If the site was larger than 5 acres, the developer was required to provide 20% of the units as BMR housing.
The City of Palo Alto has historically used in-lieu fees & development impact fees charged on new, market-rate housing and/or commercial
development to finance 100% affordable developments. Updated Commercial and Residential Impact Fee Nexus Studies and adopted two
ordinances making changes to its BMR program and adopted a new fee structure, effective 06/19/2017.
-Fair Housing: Protect tenants from displacement through more robust tenant protections and better access to legal services. City provides
CDBG funding to Project Sentinel, a non-profit entity that provides expertise in fair housing law and tenant-landlord disputes. Program services
include information, referrals, community outreach, and education. Project Sentinel resolves fair housing complaints via investigation,
mediation, education, and outreach to both property owners and tenants about fair housing policies. Increase access to lending opportunities
for residents of historically low-income communities of color.
-Housing Incentive Program (HIP): Effective 05/02/2019, an alternative to the State Density Bonus law and provides development incentives
including no housing density restrictions, increased floor area ratios, and increased lot coverage. HIP is available to specific areas of the City
where higher-density development is encouraged. - Affordable Housing (AH): 2018, City Council adopted Affordable Housing Combining District
to provide flexible development standards beyond the State Density Bonus Law to allow 100% affordable housing projects located in a
commercially zoned area.
-Workforce Housing (WH): 2018, Encourages housing near rail transit by modifying development standards by modifying flexible development
standards for the public facilities (PF) zoning district. The average Palo Alto home, as of 02/01/2023, costs about 8 times the national average
home price, and the monthly rent is about 2.5 times the national average.
-Accessory Dwelling Units and Junior Accessory Dwelling Units: City amended its Ordinance Title 18, which included “the development of a
single-family home, ADU, and/or a JADU on a lot that allows for single-family development shall not be considered a multifamily development,
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nor shall they require Architectural Review pursuant to other sections of Chapter 18.
-City Amended Chapter 9.68 (Rental Housing Stabilization) of the Municipal Code to expand just cause eviction protections to renters, including
reducing the minimum time period required for renters to qualify for just cause eviction protections.
Discussion
NA
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AP-85 Other Actions - 91.420, 91.220(k)
Introduction
The following provides a description of today's obstacles and or barriers to meeting LMI or underserved
populations, including vulnerable populations, housing preservation needs, lead-paint issues, increased
earning capacity for LMI households, city delivery structure for supporting needed services, and regional
approaches to serving and helping the homeless populations.
Actions planned to address obstacles to meeting underserved needs
The City collaborative works with social service providers, affordable housing developers, housing
preservation entities, fair housing, and homeless assistance agencies to address obstacles to permanent
housing for all residents. To address this, the City supplements its CDBG funding with other resources
and funds, such as: To address this, the City supplements its CDBG funding with other resources and
funds, such as:
•Support social services entities including RotaCare and Catholic Charities that provide needed
supportive services for extremely low-income and or elderly residents.
•In FY 2025-26, the City’s Human Service Resource Allocation Process (HSRAP) provided about
$600,000 from the General Fund in support of human services. The HSRAP funds, in conjunction
with the CDBG public service funds, are distributed to local non-profit agencies.
•Support low income persons with disabilities. Provide CDBG funds to Silicon Valley Independent
Living Center (SVILC) with case management needs.
•Support the city’s homeless population through CDBG awards and other funding sources to
LifeMoves Shelter
•The Housing Authority of the County of Santa Clara (HACSC) administers the federal Section 8
program countywide. The program provides rental subsidies and develops affordable housing
for low-income households, seniors and persons with disabilities living within the County.
Actions planned to foster and maintain affordable housing
The City will foster and maintain affordable housing by continuing the following programs and
ordinances:
•Support low income homeowners through annual CDBG allocations for housing rehabilitation.
Provide CDBG funds to Rebuilding Together Peninsula to preserve existing affordable housing
stock. The City is also planning an affordable housing rehabilitation and replacement project,
Buena Vista Mobile Home Park that will benefit approximately 270 residents.
•Annual CDBG allocations to Rebuilding Together Peninsula to preserve existing affordable
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housing stock.
•The Below Market Rate Emergency Fund, which provides funding on an ongoing basis for loans
to BMR owners for special assessment loans and for rehabilitation and preservation of the City’s
stock of BMR ownership units.
•Apply to both the State of California HOME program, and the County’s HOME Consortium to
fund supported affordable housing projects.
•The Commercial Housing Fund and Residential Housing Fund are used by the City to assist new
housing development or the acquisition, rehabilitation, or the preservation of existing housing
for affordable housing.
•The Density Bonus Ordinance regulations allow for bonuses of 20 to 35 percent, depending on
the amount and type of affordable housing provided.
•The City is collaborated with Santa Clara County and Eden Housing in the development of
Michell Park Place, a new affordable housing development project providing 50 affordable units
located in one of the City’s LMI census tracts. This development opened in winter of 2025.
•The City awarded $5M to Charities Housing in 2025 to support the development of a 100%
affordable housing development (130-units) serving low-income households.
•The City’s participation in the County's HOME Consortium will allow developers of affordable
housing projects to be eligible to competitively apply through an annual RFP process directly to
the County for HOME funds to help subsidize affordable housing projects in Palo Alto, including
acquisition, construction, and rehabilitation.
Actions planned to reduce lead-based paint hazards
The City’s housing and CDBG staff provides technical assistance, information, and referrals to property
owners, developers, and non-profit organizations rehabilitating older housing about lead-based paint
(LBP) hazards. Any house to be rehabilitated with City financial assistance is required to be inspected for
the existence of LBP and LBP hazards. The City will provide financial assistance for the abatement of LBP
hazards in units rehabilitated with City funding. The City also requires that contractors be trained and
certified in an effort to decrease the risk of potential use of LBP in new units. All development and
rehabilitation projects must be evaluated according to HUD’s Lead Safe Housing Rule 24 CFR Part 35.
Rebuilding Together Peninsula, through its housing rehabilitation program, ensures each rehab includes
lead-based paint assessment and mitigation on impacted areas for each housing case.
Actions planned to reduce the number of poverty-level families
The City, in its continuing effort to reduce poverty, will prioritize funding agencies that provide direct
assistance to the homeless and those in danger of becoming homeless. In FY 2026-27, all CDBG
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programs will work at reducing the number of poverty-level families in Palo Alto.
Actions planned to develop institutional structure
The administration of the City’s CDBG program requires collaboration between several departments
including the finance department, administration, Human Services, and Planning and Development
Services Department staff. The Planning and Development Services Department assigns critical staff to
manage project development, subrecipient contracting and technical assistance, consultant
management, collaboration with public works department staff, and fund draws and activity spending.
The Finance Department assists in the process by reconciling CDBG and City budget accounts and
drawdown approvals. The Human Relations Commission and Council hold public hearings and
recommend recommendations and final approvals of annual CDBG project activities and projects.
The City strives to improve intergovernmental and private sector cooperation to synergize efforts and
resources and develop new revenues for community service needs and affordable housing production.
Collaborative efforts include:
•Regular meetings between entitlement jurisdictions at the CDBG Housing Coordinators meetings
and Regional Housing Working Group.
•Joint jurisdiction Request for Proposals and project review committees.
•Collaborations between the City’s housing and public works departments.
•Coordination on project management for projects funded by multiple jurisdictions.
•HOME Consortium meetings between member jurisdictions for affordable housing projects.
Actions planned to enhance coordination between public and private housing and social
service agencies
City will continue participation in HOME consortium meetings with County, consortium members, and
other local service and housing providers to discuss housing and community development topics.
Discussion
NA
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Program Specific Requirements
AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4)
Introduction
Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the
Projects Table. The following identifies program income that is available for use that is included in
projects to be completed.
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the
Projects Table. The following identifies program income that is available for use that is included in
projects to be carried out.
program year and that has not yet been reprogrammed 0
address the priority needs and specific objectives identified in the grantee's strategic plan.0
been included in a prior statement or plan 0
Total Program Income:0
Other CDBG Requirements
1.The amount of urgent need activities 0
2.The estimated percentage of CDBG funds that will be used for activities that
benefit persons of low and moderate income. Overall Benefit - A consecutive
period of one, two or three years may be used to determine that a minimum
overall benefit of 70% of CDBG funds is used to benefit persons of low and
Discussion
NA
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Resolution No. _______________
Resolution of the City Council of the City of Palo Alto Approving
The Use of Community Development Block Grant Funds for
Fiscal Year 2026-2027
A. On June 9, 2025, the Palo Alto City Council approved and adopted a document entitled “Consolidated
Plan” which identified and established the Palo Alto housing and non-housing community
development needs, objectives and priorities for the period July 1, 2025, to June 30, 2030.
B. The Fiscal Year 2026-2027 Annual Action Plan, the annual funding update to the Consolidated Plan,
was subjected to public review and commentary during the period from May 1, 2026, through May
31, 2026.
C. The potential uses of Community Development Block Grant (CDBG) funds were evaluated in light of
the needs and objectives identified in the Consolidated Plan and reflected in the recommendations
and comments of the Human Relations Commission Selection Committee, Human Relations
Commission, and other interested citizens.
D. Under the CDBG program, the highest priority is given to activities which will benefit persons with low
and moderate incomes.
E. The City Council and the Human Relations Commission have held publicly noticed public hearings on
the proposed uses of the CDBG funds for Fiscal Year 2026-2027.
F. CDBG funds allocated to the City for Fiscal Year 2026-2027 are proposed to implement the programs
described in this resolution.
NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows:
SECTION 1. The uses of CDBG funds for Fiscal Year 2026-2027 are hereby approved and
authorized for the following programs:
Name of Program Amount
1. Catholic Charities of Santa Clara County – Long Term Care Ombudsman
Program. Advocate for the rights of seniors and disabled residents in long
term care facilities.
$6,500
2. LifeMoves – Opportunity Services Center. Provide case management
services to Opportunity Services Center clients, specifically with locating
housing and/or employment and benefits counseling.
$30,500
3. Silicon Valley Independent Living Center – Housing and Emergency Services.
Provide case management services to low-income individuals with disabilities
to secure affordable and accessible housing.
$15,750
4. Project Sentinel – Fair Housing Services. Provide fair housing services
including complaint investigation, counseling, advocacy and community
education
$16,250
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5. La Comida – provide food assistance, resources and social engagement
opportunities for the older adult community. $6,320.85
6. Next Door Solutions to Domestic Violence – assist residents identifying as
victims of domestic violence by providing crisis intervention counseling and
other critical services.
$6,500
7. YWCA – provide essential domestic violence services, including crisis
counseling and emergency shelter and housing services. $5,500
8. RotaCare Bay Area Mobile Clinic – provide case management services for
individuals experiencing homelessness. $4,500
9. Peninsula Healthcare Connection Rehabilitation – funds will refurbish a
facility dedicated to providing behavioral health, therapy and addiction
treatment services.
$79,970
10. ADA curb cut-City of Palo Alto – major curb ramp improvement project that
will bring many ramps up to current ADA accessibility standards. $172,335.35
11. WeeCare/Upwards - a micro-enterprise project that will provide Palo Alto
home childcare business improvement services. $72,000
12. Rebuilding Together Peninsula – Safe at Home. Provision of critical health
and safety related home repair needs for low-income Palo Alto
homeowners.
$73,585
13. CDBG Program Planning and Administration. $122,427.80
$612,139
SECTION 2. The total amount set forth under Section 1 of this resolution represents the
proposed allocation of $512,139, in CDBG funds from the United States Department of Housing and Urban
Development (HUD) for Fiscal Year 2026-2027, and $100,000, in anticipated program income for Fiscal
Year 2025-2026 from Alta Housing.
SECTION 3. The City staff is hereby authorized to submit the Fiscal Year 2026-2027 Annual
Action Plan, update and appropriate funding to HUD for the Fiscal Year 2026-2027 CDBG funds, and such
money shall be spent as set forth in this resolution. The Mayor, City Manager, and any other designated
City staff or officials are hereby authorized to execute such application forms and any other necessary
documents to secure these funds. The City Manager or designee is authorized to sign all necessary grant
agreements with the program providers set forth in Section 1.
SECTION 4. The funding amounts set forth in Section 1 of this resolution are based on
final allocation amounts from the Federal Fiscal Year 2026-27 HUD appropriations; City Staff is authorized
to adjust increasing or decreasing the funding amounts set forth herein as consistent with the adopted
Citizen Participation Plan.
SECTION 5. The City Council hereby finds that the Fiscal Year 2026-2027 CDBG program
authorized under Section 1 of this resolution is not a project under the California Environmental Quality
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Act (CEQA). However, the Council further authorizes and directs City staff to prepare certifications that
may be required, under CEQA and the National Environmental Policy Act (NEPA), for each project under
the Fiscal Year 2026-2027 CDBG program prior to the release of funds for any such project.
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INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST: APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
City Manager
Sr. Assistant City Attorney Director of Planning and
Development Services
APPROVED AS TO CONTENT:
Director of Administrative Services
CDBG Program Manager
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: June 1, 2026
Report #:2602-6010
TITLE
Outdoor Activation Standards, Pre-Approved Parklet Plans and Public Space Design Concept for
the Car-Free Portion of California Avenue; and FIRST READ: Adopt an Ordinance Amending the
Sign Code to Streamline Permitting of Signs in Conjunction with a Parklet; CEQA Status - Exempt
pursuant to CEQA Guidelines Section 15303.
RECOMMENDATION
Staff recommends that the City Council:
1. Approve the Outdoor Activation Standards and encroachment permit requirements for
the car-free portion of California Avenue as documented in Attachment A.
2. Approve the Pre-approved Parklet Plans with standardized parklet designs for California
Avenue summarized in Attachment B.
3. FIRST READ: An ordinance amending the Sign Code (PAMC section 16.20.160) to allow
parklet permittees to post certain types of parklet signs in compliance with the Outdoor
Activation permit standards in lieu of the Sign Code’s default review process; see
Attachment C.
4. Approve the proposed public space design concept outlined in Attachment D.
EXECUTIVE SUMMARY
This Staff Report presents for City Council consideration the Proposed Outdoor Activation
Standards, Pre-Approved Parklet Plans, a Sign Code amendment to streamline parklet signage
permits, and a pedestrian-priority public space design concept for the car-free portion of
California Avenue.
On April 16, 2026, the ARB recommended the approval of the Outdoor Activation Standards
and Pre-approved Parklet Plans by a 5-0 vote and expressed strong support for the public space
design concept.
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The proposed Outdoor Activation Standards, Attachment A, enhance the commercial district’s
vibrancy and economic vitality by enabling outdoor dining, retail display and related activation
while ensuring spaces remain accessible, safe, equitable, and well-designed. Compared to the
City’s existing parklet program, the proposed program expands beyond parklets to include a
broader range of outdoor activation types, including parklets, café seating, and retail displays,
and establishes California Avenue specific design standards and pre-approved parklet plan set
(Attachment B) to reduce design costs, expedite permitting, and support year-round use.
BACKGROUND
Develop revised standards for outdoor activation, specifically permitting parklet structures
for California Avenue.
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• Utilize the ARB for design recommendations and review process for standard and custom
designs (to support year-round outdoor dining).
ANALYSIS
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5. Provides design guidance on the aesthetics of improvements to support the commercial
district as an outdoor dining destination.
6. Prohibits large-format tents, residential fencing, and temporary improvements.
7. Enables equal or greater outdoor dining area (subject to permit requirements and
obtaining letters of consent to extend beyond the establishment’s street frontage).
Improvements to the On-going Parklet Program
The proposed Outdoor Activation Standards adapt the City’s Ongoing Parklet Program and
update pre-approved parklet plans to encourage commercial activation of car-free California
Avenue in the following ways:
1. Supports a wider range of activities with standards and guidance for the layout of
parklets, café seating, and retail displays.
2. Activates both roadway and sidewalk.
3. Enables transparent and weather adaptable parklets, rather than requirements for
traffic safety, which can obstruct views to storefronts from the roadway.
ARB Ad Hoc Committee
Between October 2025 and March 2026 staff met frequently with an ARB ad hoc committee,
consisting of Mousam Adcock and Marton Jojarth, to refine design standards and pre-approved
parklet designs. ARB Ad Hoc input focused on:
1. Limiting ARB Review to special cases - rely on staff discretion and reserve full ARB
review for special cases.
2. Designing light, airy, and transparent parklets.
3. Reducing the size and appearance of roofs.
4. Enabling three-season weather comfort, that maintains visual openness.
5. Restricting planter heights that maintain visibility.
6. Ensuring high quality, commercial grade materials and finishes.
Pre-Approved Parklet Plans
Proposed pre-approved parklet plans offer businesses a ready-to-use option to reduce design
costs, shorten review time, and improve predictability. The plan set includes three base
models, with options for enclosure and weather protection:
(1) Cabana, with a sloped roof and overhangs
(2) Pergola, with flat roof, no overhangs and use of steel brackets
(3) A roofless parklet, with no area limits
Design adaptations for a car-free environment include lighter, more transparent structures,
options for year-round weather, and structural solutions to avoid pavement and sidewalk
attachments. The plan set reflects lessons learned from the implementation of the on-going
parklet program. For narrow parklets, which are only five feet wide due to the setback for the
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gas main, the roof can overhang the sidewalk by three feet, effectively creating an eight-foot
deep parklet.
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Outdoor Dining / Proposed
Activation
Sidewalks
(SF)
Roadway
(SF)
Total Area
(SF)
# of Dining
Establishments
Outdoor Dining Area in 2024 5,106 7,514 12,620 20
Outdoor Dining Area in 2025 5,168 5,482 10,650 19
Activation Standards 4,801 6,946 11,746 22
Activation Standards with
Encroachments 5,741 7,958 13,699 22
2026 Vacant Space (California
Hotel & 414 California Avenue) 1,945 2,812 4,757 NA
Potential Outdoor Activation
All Areas and Uses 12,839 17,940 30,779 NA
Permits
The Outdoor Activation Standards establish that applicants must obtain an Encroachment
Permit prior to construction, which is issued by Public Works. The installation must be
inspected prior to operation. The City retains discretion to approve, conditionally approve,
modify, deny, revoke, or modify permits as needed for public health, safety, welfare, and utility
access. The fee structure mirrors the existing parklet program, with an application fee, deposit,
renewal fee, and annual license fee charged per square foot.
Public Space Concept for Bikes on California Avenue
At the March 18, 2026, Economic Development Committee meeting, the Committee directed
staff to redesign the car-free portion of California Avenue as a pedestrian prioritized public
space, where bikes are allowed, rather than a two-way slow bike lane. In response, staff
developed the updated concept shown as Attachment D.
The revised concept maintains the shared central accessway for pedestrians, bicyclists,
emergency access and service vehicles, while prioritizing the experience of California Avenue as
a pedestrian oriented space and outdoor dining destination. The concept relies on changes in
direction, surface color and texture to naturally encourage slow bike speeds. Colored
thermoplastic bands create a bicycle ‘traffic calming’ texture to the roadway, extending from
sidewalk to sidewalk to define the pedestrian zone. The opening between the bands is a
smooth paved area that will naturally attract cyclists to ride to avoid the texture bumps. A
center line of white dots divides this area for east and west bound cyclists. The center line
takes a meandering route to encourage slow cycling speeds.
This updated concept represents a significant departure from the earlier, two-way bicycle lane
concept down the center of the street. Feeback from the ARB, merchants and community
members has been well supported, particularly in response to concerns that the previous bike
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lane concept would encourage speeding. This alternative is viewed as a placemaking solution
aligned with California Avenue’s role as a pedestrian-oriented commercial destination.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
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merchant desires and concerns. Staff has incorporated merchant feedback along the following
themes:
Request to permit a range of investment options.
Interest to invest in permanent solutions when the City Council approves the
permanent parklet program.
There is interest in pre-approved parklets.
Desire for additional parklet options where the sidewalk and roadway are level
to maximize all weather outdoor dining and minimize impact of gas lines.
Intention for best possible customer experience if paying for use of street.
Strong concerns regarding speeding bikes impacting pedestrian safety.
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ENVIRONMENTAL REVIEW
1.
ATTACHMENTS
APPROVED BY:
1 Previous Adopted Addendum: https://www.paloalto.gov/files/assets/public/v/1/city-manager/car-
free-streets/car-free-ca-and-ramona-eir-addendum-02-2025.pdf
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OUTDOOR
ACTIVATION
STANDARDS
City of Palo Alto
June 1, 2026
CAR FREE CALIFORNIA AVENUE
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Table of Contents
CHAPTER 1 — PROGRAM OVERVIEW ...................................................................................... 3
1.1 Introduc-on ......................................................................................................................... 3
1.2 Vision .................................................................................................................................... 3
1.3 Purpose ................................................................................................................................ 3
1.4 Objec-ves ............................................................................................................................. 3
1.5 Outdoor Ac-va-on Types ..................................................................................................... 4
1.6 Defini-ons ............................................................................................................................ 4
CHAPTER 2 — LOCATION, SIZE, SETBACK, USE & OPERATOR REQUIREMENTS .......................... 5
2.1 Loca-on ................................................................................................................................ 5
2.2 Size ....................................................................................................................................... 6
2.3 Setbacks and Clearances ...................................................................................................... 6
2.4 PermiIed Ac-vi-es .............................................................................................................. 7
2.5 Opera-ons and Maintenance Responsibili-es ..................................................................... 8
CHAPTER 3 — DESIGN STANDARDS ........................................................................................ 10
3.1 Accessibility ....................................................................................................................... 10
3.2 Parklets .............................................................................................................................. 11
3.3 Café Sea-ng Areas .............................................................................................................. 19
3.4 Retail Displays .................................................................................................................... 22
3.5 Planters .............................................................................................................................. 23
3.6 Umbrellas ........................................................................................................................... 23
3.7 Branding and Signage ......................................................................................................... 25
3.8 Waste Management ........................................................................................................... 26
3.9 Electrical ............................................................................................................................. 26
3.10 Ligh-ng ............................................................................................................................. 27
3.11 Hea-ng ............................................................................................................................. 28
CHAPTER 4 — ENCROACHMENT PERMITS .............................................................................. 30
4.1 Permit Process .................................................................................................................... 30
4.2 SubmiIal Requirements ..................................................................................................... 30
4.3 Failure to Maintain ............................................................................................................. 32
4.4 U-lity Maintenance and Public Safety ............................................................................... 32
4.5 Removing an Outdoor Ac-va-on Area ............................................................................... 33
4.6 Extension Beyond Establishment ....................................................................................... 33
4.7 Outdoor Ac-va-on Area Fees ............................................................................................ 34
4.8 Sharing Parklets .................................................................................................................. 34
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CHAPTER 1 — PROGRAM OVERVIEW
1.1 Introduction
The California Avenue Outdoor Activation Standards (Standards) set forth design, operational
and submittal requirements for commercial use of the public right-of-way within the car-free
portion of California Avenue extending from El Camino Real to Birch Street. The Standards
apply to applications seeking an encroachment permit for outdoor activation areas and provide
the basis for City review and approval of proposed improvements, furnishing and operations.
1.2 Vision
Car Free California Avenue is a community-oriented main street that is a visually open, walkable
and vibrant community destination for outdoor dining, shopping and events. Commercial
activation of the street strengthens economic vitality, supports social connection, and enhances
placemaking for residents, merchants and visitors.
1.3 Purpose
The purpose of the Standards is to allow local businesses to extend commercial activity onto
the public sidewalk and roadway for outdoor dining, retail, entertainment and related uses,
while ensuring spaces remain accessible, safe, equitable, and well-designed.
1.4 Objectives
Outdoor Activation advances the following objectives:
• Boost economic vitality by enabling year-round outdoor dining, retail, entertainment,
and services that improve customer experience and support business investment.
• Ensure accessibility and safety with universally accessible, ADA-compliant, well-designed
outdoor spaces.
• Enhance the street environment by improving the function, appearance, and overall
experience of a car-free community destination.
• Provide a clear, consistent and efficient process that supports local businesses with a
flexible and streamlined permitting process.
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1.5 Outdoor Activation Types
Outdoor Activation consists of two types of space:
• Parklets: Constructed outdoor areas with improvements for year-round outdoor dining,
retail, entertainment, or services.
• Café Seating/Retail Display Areas: Outdoor areas on the existing sidewalk or roadway
that primarily use removable furnishings such as tables, chairs, umbrellas, heaters and
retail displays.
1.6 Definitions
Outdoor Activation Zones on California Avenue are as shown in Figure 1.
Figure 1. Cross Sec-on of California Avenue with Street Space Zones
Frontage Zone — The por-on of the sidewalk adjacent to buildings, including
entryways, recessed doors, windows, awnings, and overhangs, that
func-ons as an extension of the building frontage.
Pedestrian Zone — The clear sidewalk path used for pedestrian movement, ADA access,
and emergency access to buildings.
Street Furniture Zone — The por-on of the sidewalk containing public ameni-es such as
street trees, landscaping, ligh-ng, benches, bike parking, and other
streetscape elements.
AcOvity Zone — The roadway space designated for outdoor dining, retail
merchandising, public sea-ng, Farmers’ Market opera-ons, events,
and other community uses that ac-vate the street.
Accessway — The roadway area for pedestrian and bicycle circula-on, as well as
emergency and authorized service vehicle access.
Outdoor AcOvaOon Area – The permiIed area of the public right-of-way within the car-free
por-on of California Avenue that is authorized for commercial use
by an adjacent business subject to these Standards.
Frontage Pedestrian Furniture Ac1vity Accessway Ac1vity Furniture Pedestrian Frontage
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CHAPTER 2 — LOCATION, SIZE, SETBACK, USE
& OPERATOR REQUIREMENTS
This section describes requirements for the location, size, setback, permitted activities,
operator requirements for parklets and café seating/retail display areas.
2.1 Location
Businesses are allowed to locate outdoor activation space directly in front of the operator’s
storefront. Commercial outdoor activation is permitted within the setbacks on Figure 2. and
Figure 3. which contain the following street space zones in Figure 1:
• Frontage Zone
• Street Furniture Zone
• Activity Zone
Figure 2. Setback Map – El Camino to Ash Street
Figure 3. Setback Map – Mimosa Lane to Birch Street
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Tactile Directional
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Car Free California Avenue - Activation Setback Plan Commercial Use Setbacks and Illustrative Build-out of Pre-Approved Parklets & Cafe Seating
City of Palo Alto
5/14/26
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1”=20’
Legend
Pedestrian Crossing
Pedestrian Pavement
Markings
Cafe Seating
Parklet
Setback
Gas Main
Retail
Restaurant
Commercial
Service/Office
VacantBike Racks
Farmers Market Tent
Tactile Directional
Indicator
Car Free California Avenue - Activation Setback Plan Commercial Use Setbacks and Illustrative Build-out of Pre-Approved Parklets & Cafe Seating
City of Palo Alto
5/14/26
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2.2 Size
The maximum size of a covered parklet is 350 square feet. A single business may have no more
than two covered parklets, for a maximum covered area of 700 square feet, provided the
covered area does not exceed area limits as permitted by these standards.
2.3 Setbacks and Clearances
Setbacks apply to all design elements including platforms, railings, screens, planters,
cantilevered awnings, and umbrellas. Outdoor activation areas shall not obstruct or encroach
upon:
• A required 8-foot pedestrian path of travel on sidewalks
• 20-foot emergency vehicle access (where applicable)
• Designated pedestrian zones
• Emergency egress
• Designated bike lanes
Fire Safety
• Two means of emergency access to and from buildings to the street right-of-way are
required.
• Minimum 4 feet from each property line, creating an 8-foot emergency
accessway between adjacent properties.
• Minimum 4 feet between structures to allow for emergency access.
• For multi-tenant buildings, enclosures may adjoin, provided building setback
requirements are met.
Utilities
Improvements within an outdoor activation area must not obstruct:
• Public utilities (e.g., water, gas, wastewater, electricity, fiber, streetlight,
telecommunication vaults)
• Gas mains or services.
o Parklets and outdoor dining improvements must maintain a 2-foot setback from
gas mains.
o Any improvement within 2 feet of a gas lateral (service line) is required to install
a gas shut-off valve and maintain access to the valve from the street. Installation
of the valve is at the sole expense of the applicant.
o Installation is required to be completed by the city or a qualified contractor, per
the current Utility Standards and approved by the city prior to final parklet
approval or issuance of occupancy permit.
o Each parklet shall have a remote methane gas detector installed. The device
must have an audible alarm to alert when methane gas is detected. The device
should be installed in accordance with the manufacturer’s recommendation and
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with consideration of where methane gas is likely to accumulate. In certain
conditions, it may require the installation of multiple devices to provide
adequate coverage.
o See Section 4.4 Utility Maintenance and Public Safety for additional
requirements
• Fire hydrants: minimum 15-foot clearance
• Manhole cover: maintain a 5-foot radius for access
• Storm drain catch basin: minimum 5-foot clearance; designs must allow maintenance
access
• Streetlight poles and luminaires will require maintenance or replacement. Parklets and
outdoor dining improvements cannot block access. Access and replacement typically
require a utility boom truck.
• Streetlight underground boxes: minimum 5-foot radius for access.
• Electric – Existing primary electric (12,470V) circuits cross Cal Ave along Birch Street.
Minimum horizontal clearance is 12-48” and vertical clearance is 12”.
• CPA inspectors must be present when potholing. No repairs can be made without CPA
Engineering approval nor without the inspector present.
Street Trees
• Maintain a 3-foot clearance from tree trunks or major branches.
• Closer encroachment requires urban forestry approval.
• To protect tree roots, enclosures may be installed adjacent to tree wells to direct foot
traffic away from roots.
If proposed improvements conflict with public infrastructure (e.g., signage, benches), applicants
must consult Public Works for potential relocation. If relocation is not feasible, design must
accommodate existing infrastructure.
2.4 Permitted Activities
Parklets and café seating/retail areas are permitted in conjunction with a legally existing and
permitted eating, drinking establishment and retail uses. All activities must be contained within
the applicant’s permitted outdoor activation space. Non-commercial activities, such as a
community or special event, may require a Special Event permit, please contact the City of Palo
Alto for requirements.
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2.5 Operations and Maintenance Responsibilities
1. Private Control
a. Parklets are deemed to be under the control of the permit holder. The permit
holder is responsible for securing the parklet and any fixtures and furnishings
contained within it at all -mes, including during hours when the associated
business is not in opera-on.
b. Businesses owners must abide by the guidelines set forth in this document and
the terms of their permit.
c. If a business does not comply with these guidelines, the city reserves the right to
enforce, modify or revoke a permit based on public safety, accessibility,
opera-onal conflicts, or other concerns.
d. Business owners are responsible for staying up to date with permit fees,
renewing their license and complying with stands/guidelines that may be
implemented in the future.
2. Alcohol Service
a. All parklets and café sea-ng areas in which alcoholic beverages are served shall
comply with standards of the Department of Alcoholic Beverage Control,
including having clearly discernable boundaries and signage, including adjacent
and non-con-guous areas to the ABC licensed establishment, as required.
b. All physical requirements of ABC should be reflected in the design submiIed for
review.
c. Businesses are to have an exis-ng CUP to serve alcohol at their main place of
business in order to serve alcohol at an outdoor parklet or cafe sea-ng.
d. Boundaries shall not be temporary construc-on such as rope and stanchion
systems, plas-c stanchions and chains, belts or weighted fabric systems, or
residen-al fencing.
e. If boundaries are provided, they are to be constructed of commercial grade
materials, finished natural materials, finished metal railings or planters
i. Boundary elements are to be securely weighted or aIached per
requirements sec-on 3.2.4(1)a, iii
ii. Provide clarity of separa-on between licensed and unlicensed areas
iii. Comply with ADA Accessibility and emergency egress and access codes
and standards
iv. Maintain openness and transparency, such as use of modular railings
spaced 2-3 feet apart
v. Shall not exceed 36 inches in height,
vi. Businesses are responsible for maintaining barriers and compliance with
ABC condi-ons.
3. Maintenance
a. Businesses owners must maintain and upkeep outdoor ac-va-on space. This
includes cleaning furnishings daily, removing trash and recycling, replacing
damaged ligh-ng or heaters if applicable, and maintaining landscaping.
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b. Businesses must comply with the city requests to temporarily remove furnishings
for city maintenance or special events.
c. Maintaining furniture/enclosures in good condi-on, required accessibility and
clearances and removing/storing movable elements when not in use, if required
4. Hours of Opera-on
a. Hours of opera-on are the same as approved hours for the establishment.
5. Dining
a. For outdoor dining, businesses are required to provide all furnishings.
6. Retail
a. For retail, sales businesses are required to maintain a minimum of 8’ of
unobstructed walkway space for pedestrians.
b. All displays must be removed daily. Nothing is permiIed overnight.
c. Electrical equipment, including light fixtures or generators is not allowed.
7. Entertainment
a. For live entertainment, business ac-vity is not to spill outside of permiIed
ac-va-on space.
b. Businesses must comply with the Palo Alto Municipal Code for noise limits.
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CHAPTER 3 — DESIGN STANDARDS
3.1 Accessibility
All outdoor ac-va-on areas are required to be accessible and useable by people with
disabili-es. All accessibility features shall be designed and constructed to conform to ADA
accessibility guidelines and standards.
1. Path of Travel
a. The sidewalk, parklet and cafe sea-ng area path of travel must comply with the
appropriate Americans with Disabili-es Act (ADA), Public Right-of-Way
Accessibility Guidelines and California Building Code (CBC) chapter 11B
accessibility provisions.
b. The parklet path of travel must comply with CBC chapter 10 egress requirements.
2. Grade Changes
a. The surface of the parklet plalorm must be flush with the adjacent sidewalk with
a maximum gap of 0.25 inches and 0.25 inches ver-cal tolerance.
b. Any abrupt changes in eleva-on exceeding 4 inches along an accessible path of
travel shall be iden-fied by 6-inch-tall warning curbs.
c. Parklets shall u-lize outdoor grade reflec-ve tape to mark changes in grade.
3. Ramps
a. If a ramp is required for access to the outdoor ac-va-on area or a por-on
thereof, it shall comply with all path of travel requirements above.
4. Outdoor Sea-ng
a. At least 5 percent of the sea-ng spaces and 5 percent of the standing spaces
shall be accessible. Accessible space shall meet the following requirements:
i. Interna-onal Symbol of Accessibility displayed at the table.
ii. Table surface between 28 to 34 inches.
iii. Minimum 27 inches of space from the floor to the boIom of the table.
iv. Knee clearance extends at least 19 inches under the table.
v. Total clear floor area of 30 inches by 48 inches per seat
vi. Maintain a minimum 4-foot-wide accessible path of travel to the
accessible tables, and a 5-foot-diameter (60 inches) turnaround space on
the accessible path of travel.
vii. ADA accessible sea-ng shall be of the same size and appearance as the
establishment’s other outdoor sea-ng.
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3.2 Parklets
Parklets are constructed outdoor ac-va-on areas in the public-right-of-way that support social
and commercial vitality of the street.
Design Guidance
The following design guidance establishes the intended design character for parklets on Car
Free California Avenue and shall be used together with the specific requirements in Sec-on 3.2.
1. Maintain visibility: Preserve views to storefronts, building façades, and across the street.
2. Light and transparent structure: Use slender support posts and wide spacing to
maximize visual transparency.
3. Minimal enclosure: Use open railings, low planters and walls, and limited sidewalls to
balance comfort and safety while maintaining sightlines and the open character of the
street.
4. Minimize massing: Use flat or low-pitch roof forms that do not block views.
5. Open to the sidewalk: Enable easy access between the sidewalk, parklet, and storefronts
(e.g., modular railings with spaced openings).
6. Operable weather protec-on: Support year-round dining while preserving an open-air
character during fair weather using transparent, easily retractable systems that are
integrated into the parklet design.
See Figure 4. For an example of setbacks and ac-va-on zones, and Figure 5. For an illustra-ve
example parklet and sea-ng plan.
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Figure 4. Example Parklet and Cafe Sea-ng Setbacks
Figure 5. Illustra-ve Parklet and Cafe Sea-ng Plan
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3.2.1 Parklet Types & Locations
The following four parklet types are permiIed:
• Narrow Parklet on roadway (former parallel parking spaces)
• Wide Parklet on roadway (former angled parking spaces)
• Combined roadway and sidewalk Parklet: permitted on sidewalks 22 feet or wider,
maybe up to 10-foot wide, with no more than 5 feet located on the sidewalk.
• Sidewalk Parklet: permitted on sidewalks 30 feet wide; maybe up to 12-foot wide on the
sidewalk, provided a minimum of 8 feet clear sky is maintained from any building
awning or projection.
Any parklet located on a sidewalk requires additional Public Works review for utilities, sidewalk
structural integrity, path of travel and other applicable requirements.
3.2.2 Platforms
Platforms are a level, horizontal surface extending from the sidewalk into the roadway,
providing a stable, accessible floor surface and protecting patrons from street runoff.
1. Structural
a. Parklets shall be constructed with quality materials and shall be of natural durable
wood (such as redwood, cedar, etc.), preserva-ve treated wood, light-gauge steel,
or other engineered material suitable for exterior condi-ons.
b. The parklet plalorm must support 100 pounds per square foot of live load.
c. All fastening hardware and fasteners adjacent to and into preserva-ve treated
wood must be made of one of the following: hot-dipped zinc coated galvanized
steel, stainless steel, silicon bronze, or copper.
2. Drainage & Ventilation
a. The underside of the plalorm shall be constructed to allow for drainage.
b. Adequate cross ven-la-on shall be installed to allow for the surface to dry within
24 hours.
c. Parklets shall not impede the flow of curbside drainage. The parklet design shall
include a minimum 6.5-inch-wide clearance from sidewalk curb along the en-re
length of the parklet. An ADA -compliant con-nuous gra-ng flushed with the
sidewalk and decking shall cover the clearance between the sidewalk curb and
the parklet floor. See Figure 6. for preferred plalorm aIachment at curb detail
and Figure 7. for alterna-ve plalorm aIachment.
d. Openings at either end of the parklet shall be screened with the permanent
aIachment of corrosion-resistant material (e.g. galvanized welded wire mesh)
having a maximum 0.25-inch mesh to prevent debris buildup beneath the parklet
and in the guIer. Any other gaps or openings in the plalorm or between the
plalorm and the substrate larger than .25 inch shall be screened with the
permanent aIachment of corrosion-resistant material (e.g., galvanized welded
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wire mesh) having a maximum 0.25-inch mesh.
e. If the parklet is uncovered, the parklet floor shall be sloped a minimum 1/8 inch /
linear foot and a maximum ¼ inch / linear foot towards the sidewalk. The closure
decking shall be removable for easy access for under plalorm inspec-on as
needed.
Figure 6. Preferred Plalorm AIachment at Curb
Figure 7. Alterna-ve Plalorm AIachment to Curb
3. Plalorm Attachment
a. The parklet is to be level with the sidewalk where there is a curb.
b. The City of Palo Alto strongly prefers free-standing plalorms that are not
anchored or aIached to the roadway or sidewalk. Anchored plalorms may
be considered through the encroachment permit review process where a
free-standing design is not feasible or would not meet safety, stability or
code requirements. Example circumstances would be a hybrid parklet that is
located on both the sidewalk and roadway where the transi-ons in surfaces
are uneven, or the crown of the road, cross slope or other pavement
irregularity requires minor anchoring for stability, or other site-specific
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condi-ons. Staff will review as part of the encroachment permit process.
Anchoring cannot exceed a maximum depth of 6 inches. Any anchoring
proposed into the public street will require Underground Service Alert (USA)
markings and addi-onal staff review.
c. The preferred grate support along the curb face shall be installed perpendicular
to the curb (per the detail provided in Figure 6).
d. Figure 7 is an acceptable alterna-ve where Figure 6 cannot be implemented.
The manner of anchoring shall employ concrete anchor bolts inserted into pre-
drilled holes in the curb. Anchor embedment into the curb shall be between 3”
and 4” in depth.
e. Parklet floor shall be made of exterior-rated material. They shall not be made
of metal, glass, or interior materials. The floor shall have slip resistance ra-ng
greater than R11 or a coefficient of fric-on greater than .5. Parklet floor shall
be designed for removal to allow immediate access to below grade u-li-es in
the event of maintenance, emergency (gas leak) or other circumstances.
Removable floor sec-ons shall be sized such that the weight of a removable
floor panel shall not exceed 30 pound to accommodate removal by one
person.
3.2.3 Roofs
1. Structural
a. Complete roof framing plan, which includes horizontal and ver-cal bracing and
support posts, is required to be submiIed with structural calcula-ons that meet the
standards in the currently adopted California Building Code as amended by PAMC
16.04, and current version of the American Society of Civil Engineer's ASCE 7 Chapter
15: Seismic design requirements for non-building structures. A licensed civil and/or
structural engineer who is registered in the State of California shall stamp and sign
the plan and associated calcula-ons, as well as conduct an onsite structural
observa-on to ensure the roof structural system and its suppor-ng elements were
built according to the plans prior to occupancy.
b. All connector hardware and fasteners shall be resistant to corrosion and listed as
compa-ble with the framing material.
c. Roofs may be a solid uniform material or open construc-on (i.e., trellis, pergola,
etc.).
d. Roofs shall not be aIached or connected to a building.
e. Roofs can be flat or sloped no greater than 1:12, and shall slope toward the street to
ensure rainwater drains into the street, with a minimum slope of ¼” drop / linear t.
f. The roof’s outer edge along the accessway and sidewalk may extend no greater than
12 inches into a gas main setback above 8 feet. Roofs may can-lever up to four feet
over the sidewalk area where sidewalks are 22 feet and wider to ensure that at least
one third of the sidewalk width is open to the sky.
g. The roof shall not extend more than 12 inches over the sides of the parklet into the
setbacks for emergency access at adjacent parklets.
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2. Height/loca-on
a. The roof shall have a minimum head clearance of 8 feet.
b. A parklet roof shall measure no taller than 11 feet, as measured from the plalorm
grade.
3. Materials
a. Rootops may be open or solid. PermiIed open trellis roofs are flame-retardant
fabric, pressure-treated wood, exterior grade wood (redwood, cedar or similar) or
light gauge steel.
b. PermiIed roof coverings are treated, exterior grade plywood, asphalt -les (on
sheathing and underlayment such as bituthene), transparent panels (UV resistant),
steel (sheets or standing seam) or corrugated metal panels or sheets. Metal roof
coverings to have durable commercial grade pre-finished metal panels; corrosion
resistant and low glare. Prohibited roof coverings are OSB, unfinished lumber or
wood surfaces, corrugated acrylic or plas-c panels, heavy materials, such as clay or
stone -les, vinyl, sot plas-cs, tarps or non-flame-retardant fabrics
c. All wood and metal must be sealed and finished, including all exposed surfaces of
plywood sheathing. Wood finishes can be stained, painted or sealed with exterior
grade products for weather protec-on.
d. If fabric shade sails or similar tension fabric coverings are proposed, the fabric cover
shall be limited to the top por-on of the parklet and not extend to addi-onal sides
perpendicular to the street or sidewalk. All fabrics and all interior decora-ve fabrics
or materials shall be flame-retardant in accordance with the provisions set forth in
CCR, Title 19, Division 1, chapter 8. The applicant shall provide cer-fica-on that the
fabric covering is flame resistant with any of the following:
i. NFPA 701 cer-fica-on
ii. ASTM E84 or UL 723
3.2.4 Enclosures
1. Railings
Railings shall be provided where a parklet includes a raised plalorm edge adjacent to
the sidewalk or roadway. In limited cases, a parklet without a plalorm may be
considered through permit review, subject to approval of edge treatment, ADA access
and other applicable safety requirements. Railings are also permiIed on sidewalks
subject to staff review.
a. Requirements
i. Height: up to 36 inches, measured from the surface of the plalorm.
ii. Stability: railings shall resist a 200-pound load at top and side of railing
iii. Anchoring: fasten railings to framing or structural elements. Railings can
be anchored to the sidewalk and roadway subject to staff review,
provided that the anchoring does not exceed a maximum depth of 3
inches.
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iv. Clearance: must not encroach on the 8-foot pedestrian path or ADA
accessible routes; must not obstruct hydrants, vaults, or emergency
zones.
v. Gripping surface: con-nuous and smooth.
vi. Cables: must be taut and spaced to prevent 4" sphere passing through
vii. Materials: commercial grade, powder-coated metal, treated hardwood,
composite/engineered wood, painted steel cable systems.
viii. Avoid: corrugated plas-c, fabric barriers, chain link, unpainted raw wood.
Residen-al fencing is prohibited.
ix. Finish: maIe or sa-n; neutral/coordinated colors (branded colors allowed
if aligned with Cal Ave design paleIe).
x. Openness: Architectural screens or laser cut metal panels more than 50%
open are acceptable.
xi. Excep-ons to the standard 36" railing height are permiIed up to 48" in
height for street facing bar sea-ng
2. Low Walls
a. Low walls may be used where wind protec-on is desired and to support windows
and operable panels above.
b. Requirements
i. Maximum height: 36 inches.
ii. Substan-ally solid from plalorm to top of wall.
iii. Constructed of durable materials capable of suppor-ng operable panels
above (e.g., sealed/stained wood, composite/fiber-cement, metal panel
systems, or planter-walls).
iv. All wood must be stained, painted or sealed with exterior grade products.
v. No opaque extensions above 36 inches.
vi. Excep-ons to the standard 36" wall height are permiIed up to 48" in
height for (1) street facing bar sea-ng and (2) ABC required boundaries
constructed of high-quality, commercial-grade materials in ac-ve use
prior to June 2026.
3. Sidewalls
a. A parklet sidewall is a ver-cal enclosure installed along the edges of a parklet
plalorm that provides privacy and/or weather protec-on to parklet occupants.
b. Requirements
i. Maximum height of six feet measured from the top of plalorm.
ii. Sidewalls may be provided using either of the following approaches:
1. Visually permeable sidewalls (e.g., louvers or architectural
screens).
2. Transparent panels which are encouraged to be operable (e.g.,
sliding, folding, or lit-up panels) to be open during fair weather.
iii. Total enclosure and ven-la-on:
1. Where located adjacent to a gas main, and to provide adequate
natural cross ven-la-on the combined open area of the four sides
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of the parklet must achieve a minimum 50% net open area to
allow for natural ven-la-on to prevent entrapment of gas vapors.
2. The side facing the sidewalk shall remain 100% open and
unobstructed with a minimum ver-cal clearance of 8 feet.
iv. Storefront visibility: sidewalls are to preserve openness and transparency
between the street and storefronts.
v. Materials: commercial grade, durable composite systems, powder-coated
metal, treated hardwood, composite/engineered wood, tempered glass
or plexi-glass. All wood must be stained, painted or sealed with exterior
grade products.
vi. Visual transparency: areas above 36 inches must be visually transparent
and not -nted glass.
vii. Anchoring: secured to framing and structure, wind-rated for outdoor use.
c. Not Allowed
i. Fully opaque walls or panels over 36 inches that block air flow and visual
transparency
ii. Temporary fencing/crowd-control barricades
iii. Plas-c shee-ng/tarps
iv. DIY structures from mixed salvage materials
4. Operable Weather Protec-on
a. An operable weather screen is a movable weather protec-on system integrated
into a parklet that can be deployed when needed for comfort and retracted to an
open-air condi-on. Operable weather screens are to improve customer comfort
during wind, sun, glare, or light rain.
b. Requirements
i. Retractable or operable systems shall remain fully retracted and open
during fair weather to maximize ven-la-on, visual openness and sight
lines to storefronts.
ii. Preferred operable types:
1. Retractable roll-down screens
2. sliding/folding/hinged panels
3. adjustable-height wind screens
4. retractable awnings/canopies designed to be fully stowed when
not in use.
iii. Operable weather screens are required to meet the 50% total net open
air for fully deployed weather protec-on on three sides and a completely
open side facing the sidewalk.
1. Op-ons for how retractable roll-down screens can meet this
performance requirement are:
a. A minimum screen openness factor of 40% when
deployed; or
b. A permanent open gap at the top with minimum 12-18
inches clear height measured from the top of the opening
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(can include openings in roof blocking) combined with
shades with a minimum 10% openness factor;
c. Permeable fixed elements (louvers or architectural
screens) with at least 50% open area; or
d. Other designs provided manufacturer’s specifica-ons,
openness data and calcula-ons can demonstrate
performance.
iv. Applicants must provide manufacturer specifica-ons for flame retardancy
(NFPA 701 or equivalent).
v. Materials and appearance: Use commercial-grade, outdoor-rated
materials; priori-ze transparent or visually permeable systems and
coordinated finishes.
vi. Securing and stowage: Use built tracks/guides and fastening when
deployed to prevent flapping and maintain alignment; provide a clean,
integrated stowed condi-on.
vii. AIachment: Integrate aIachment points into the parklet
framing/plalorm where feasible. Any aIachment to the ground
plane/sidewalk/roadway should be minimized, durable, and subject to
staff review.
3.3 Café Seating Areas
Café Sea-ng Areas are flexible, open-air spaces in the public right-of-way that extend dining
ac-vity from the establishment onto the sidewalk or roadway.
Types
Café seating may be located in one or both of the following areas, subject to Chapter 2 location
and setback requirements:
• Sidewalk Seating/ Display Areas: on sidewalk adjacent to the operating business.
• Roadway Seating/Display Areas: within designated roadway activity zone in front of
operating business.
Applicants proposing both sidewalk and roadway café seating shall demonstrate how the two
areas function together as a single ADA accessible outdoor environment.
Design Guidance
The following design guidance establishes the intended design character for café sea-ng areas
on Car Free California Avenue and shall be used together with the specific requirements of
Sec-on 3.3.
1. Layout café sea-ng to feel like an extension of the business and contribute to the vitality
of the street.
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2. Design for comfort and lingering with a mix of sea-ng op-ons that support different
group sizes and lengths of stay, such as:
a. Standard table sea-ng (two- and four-top)
b. Communal tables and benches
c. Lounge sea-ng with low-profile tables
d. Bar-height counters with stools
e. Include shade where feasible to improve comfort and usability.
3. Design for seasonal varia-on and year-round use by incorpora-ng elements such as:
a. Varied shade strategies (umbrellas, canopies, etc., as allowed)
b. Fes-ve/ambient ligh-ng
c. Warmth through radiant hea-ng (where permiIed)
4. Support social interac-on and street engagement: orient sea-ng to encourage people-
watching, casual conversa-on, and connec-on to street ac-vity, while maintaining
required clear paths of travel.
5. Strengthen connec-ons to storefronts: keep the area visually open so that storefronts,
entrances, and sidewalk ac-vity remain visible from the street, suppor-ng both safety
and a cohesive main-street experience.
6. Connect to nature: use planters, trellises, and plan-ngs (annuals and perennials) to
create a garden-like outdoor environment that enhances placemaking and comfort.
7. Support aIrac-ve and comfortable nighyme dining: provide ligh-ng appropriate for
dusk and evening use and consider comfort measures such as radiant hea-ng.
8. Allow flexibility for small-scale, occasional pop-up ac-vi-es (e.g., live music) without
compromising accessibility, safety, or circula-on.
Requirements
1. Accessibility
a. All café sea-ng and retail display areas shall comply with ADA accessibility
requirements. Applicants shall provide:
i. A con-nuous accessible route from business entrance, sidewalk and café
sea-ng area
ii. Accessible sea-ng integrated into the layout
iii. Required clearances around tables, chairs, and circula-on paths
iv. Accessibility informa-on shown on the furniture plan and maintained at
all -mes
2. Furniture
a. All applica-ons shall include a furniture layout plan iden-fying type, quan-ty,
and configura-on.
b. PermiIed furniture may include:
i. Movable tables and chairs
ii. Counters and sea-ng elements
iii. Benches
iv. Umbrellas or shade devices
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c. Furniture shall:
i. Be commercial-grade and designed for outdoor use
ii. Be safe, sturdy, and durable
iii. Not include inexpensive, monoblock or injec-on-molded plas-c chairs,
tables, or similar light weight residen-al furniture
iv. Maintain required clearances for circula-on and accessibility
v. Fixed furniture may require addi-onal staff review and approval
3. Enclosure
a. Where provided, enclosure elements shall be consistent with Sec-on 2.5 for
alcohol service. Enclosures are otherwise op-onal and may be used to spa-ally
define a café sea-ng area.
b. PermiIed enclosure types include:
i. Railings
ii. Planters
iii. Stanchions with rope or chain
iv. Low walls
v. Removable wind screens
c. Enclosures shall not exceed 36 inches in height except:
i. low wall height is permiIed up to 48" for street facing bar sea-ng; and
ii. Removable wind screens are permiIed up to 6 feet in height, provided
they are:
1. Primarily transparent above 36"
2. Not permanently aIached to the sidewalk or roadway
3. Readily and easily removable
4. Maintaining an open air outdoor cafe environment with no roof
5. Constructed of commercial-grade, outdoor-rated materials, such
as powder-coated metal, treated hardwood, composite or
engineered wood, tempered glass or plexi-glass. No -nted,
mirrored or shaded glass. All wood must be stained, painted or
sealed with exterior grade products.
6. Not obstruc-ng pedestrian or ADA accessibility in and out of the
sea-ng area
d. Planters and plan-ngs shall not exceed 36 inches in height
e. Include at least one clear point of entry
f. Exis-ng enclosure elements permiIed and installed prior to June 1, 2026, may be
permiIed to remain subject to City approval, provided these elements are
constructed of durable, commercial-grade materials, maintained in good
condi-on, and substan-ally comply with the design intent of these standards.
g. All enclosure elements must be shown on the site plan and are subject to City
approval.
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3.4 Retail Displays
Retail Display Areas are outdoor ac-va-on areas—small, curated extensions of retail shopping
into the public right-of-way that support browsing and retail sales. The following design
guidance establishes the design character for retail display areas on Car Free California Avenue
and shall be used together with the specific requirements of Sec-on 3.4.
Design Guidance
1. Merchandise as placemaking:
a. Retail displays contribute to street vitality and are to create storefront areas that
aIract customers, are easy to navigate, and well maintained.
b. Use selected items to create visual interest without appearing cluIered.
Requirements
1. Storefront rela-onship: Displays shall be arranged as an extension of the business
frontage so it is clear which business they belong to and can be easily supervised and
maintained.
2. Maintain a visually open environment: Use low-profile, visually permeable display
fixtures (e.g., tables, racks, stands) and avoid tall, opaque walls of merchandise that
block views to storefronts, building façades, or pedestrian ac-vity.
3. Create an orderly edge and predictable circula-on: Set displays in a consistent line and
alignment so pedestrians can easily understand where to walk and where to browse.
Avoid protruding into the 8-foot pedestrian zone.
4. Design for everyday setup, removal, and maintenance: Use sturdy, removable fixtures
that can be placed and removed efficiently each day. Displays should be stable, wind-
resistant, and maintained in a clean, commercial quality condi-on.
5. Priori-ze safety and accessibility: Keep walking surfaces clear of tripping hazards (cords,
loose mats, protruding supports). Ensure displays do not create obstruc-ons for people
using mobility devices or for people with low vision.
6. Use weather protec-on that supports the street: If umbrellas, canopies, or awnings are
used, size and place to support browsing comfort while remaining visually light and
compa-ble with the open character of the street.
7. Avoid spillover impacts: Display ac-vity should animate the frontage while avoiding
noise, glare, or opera-onal impacts that conflict with adjacent businesses, or the overall
pedestrian experience.
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3.5 Planters
Planters are op-onal and not required. Planters and plan-ngs can serve as buffers between
pedestrian and bicycle accessways. Planters are encouraged; they introduce nature and color,
enhancing customer experience and the street environment.
Design Guidance
1. Define ac-va-on edges without blocking pedestrian access, emergency access, or
visibility between storefronts.
2. Dining areas: define a clear, con-nuous border; Use one planter shape and vary sizes.
3. Merchandising: allow more flexible, clustered groupings; cluster sizes and layer
plan-ngs.
4. Coordinate plant paleIes along a frontage; use seasonal color to enliven areas.
Requirements
When provided, planters shall meet the following:
1. Plan-ng: Contain live plants; support seasonal plan-ng or drought-tolerant species.
2. Plant maintenance: Be maintained in good condi-on; be promptly replanted or removed
if plants fail.
3. Planter materials: planters shall be made of durable, aIrac-ve materials such as
powder-coated metal, fiberglass, reinforced concrete, finished wood with weatherproof
seal.
4. Height: Planters shall not exceed 30 inches when used to create the boundary of an
outdoor dining area. Combined height of planters and plants shall exceed 36 inches and
not obstruct visibility into/out of the sea-ng area.
5. Avoid: bright plas-c, untreated wood, mismatched DIY containers.
3.6 Umbrellas
Umbrellas may be used to provide effec-ve weather protec-on from sun, rain, and moderate
wind.
Requirements
1. PermiIed Types
a. Can-lever umbrellas
b. Center-pole (market-style) umbrellas
c. Mul--canopy umbrella systems
2. Material Specifica-ons
a. Canopy Fabric:
i. High-grade, solu-on-dyed acrylic
ii. UV-resistant, waterproof, mildew-resistant
b. Frame Material:
i. Corrosion-resistant frames (marine-grade aluminum, stainless steel, or
fiberglass).
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3. Wind and Stability
a. All umbrellas placed in the public right-of-way must be commercial grade,
intended for outdoor public and commercial use.
b. Umbrellas are not allowed to be anchored on the roadway or sidewalk.
c. Wind Performance
i. Umbrellas must be secured in a free standing, weighted base per
manufacturer recommenda-ons.
ii. Umbrellas must be rated by the manufacturer to remain stable in wind
condi-ons while open when installed according to the manufacturer’s
instruc-ons
iii. Umbrellas must be closed and secured during wind condi-ons per
manufacturer’s recommenda-ons.
d. Applicants must submit product specifica-ons and describe base and weight.
4. Size and Coverage
a. Clearance Height: minimum 7 clear feet from ground to canopy edge when fully
opened.
5. Wind and Stability
a. Wind Vents and Reinforced Seams: double-vented designs encouraged.
6. Weather and UV Protec-on
a. Waterproof coa-ngs and reinforced seams.
b. UPF 50+ ra-ng for UV protec-on.
c. Light or reflec-ve canopy colors are recommended for heat reduc-on.
7. Func-onality and Flexibility
a. Tilt and Rota-on Adjustments:
i. For can-lever umbrellas: 360-degree rota-on and adjustable -lt
preferred.
b. Retractability:
i. Retractable awnings are encouraged for year-round flexibility.
c. Ligh-ng Integra-on:
i. Ambient or task ligh-ng within umbrellas/awnings (compliant with
ligh-ng requirements).
8. Maintenance and Compliance
a. Condi-on: Canopies must be kept clean and replaced if they become faded,
ripped, or moldy.
b. Storage: Umbrellas must be stored in a closed posi-on or moved indoors during
non-opera-ng hours to prevent thet or wind damage.
9. Pop-up tents for events only, no permanent use of pop-up tents.
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3.7 Branding and Signage
Branding and signage on Cal Ave activation areas help define district identity, support business
visibility, and contribute to a cohesive and welcoming public realm.
Design Guidance
Businesses are encouraged to:
• Use high-quality materials such as metal, wood, or weatherproof composite panels.
• Use signage to reflect the unique identity of the establishment while contributing to an
overall cohesive streetscape.
• Integrate signage into planters, railings, or low screening to reduce visual clutter.
Requirements
The following standards apply to all signage in outdoor activation areas:
1. Parklet Sign Size: Parklet signage is limited to 6 square feet and shall be limited to
the name of the business. LeIers can be no taller than 15 inches.
2. Sign Type: Parklet signs are wall signs and shall be non-illuminated and non-reflec-ve.
3. Number of Signs: Businesses are permiIed one business sign on their parklet, and one
temporary sandwich board sign in their ac-va-on area.
4. Height: Any signage shall be affixed to the outermost por-on of the parklet
enclosure no higher than 36 inches from the street grade.
5. No Adver-sing: No form of adver-sing is permiIed to be painted or mounted on any
surface or area of the parklet or ac-va-on area.
6. Post Reloca-on: If a signage post is in conflict with the proposed parklet, the
applicant shall contact Public Works to evaluate reloca-ng the post. If reloca-on is
not possible, the applicant must redesign the parklet to fit with the exis-ng post.
7. Parking Signs: Any exis-ng parking signs installed adjacent to the parklet shall be
removed by the applicant and returned to the Public Works Department.
8. Construc-on: Signs shall be constructed wholly of metal, incombus-ble plas-c or
other approved fire-resistant material.
9. Accessibility: All signs are to meet ADA accessibility standards for sec-on 307.2
Protrusion Limits hIps://www.access-board.gov/ada/#ada-307_2 and sec-on 307.3
Post-Mounted Objects hIps://www.access-board.gov/ada/#ada-307_3.
10. Sandwich Boards
a. Size: Sandwich board signs are limited to no larger than 2 feet wide by 3
feet wide.
b. Loca-on: Sandwich board signs are not permiIed to obstruct the 8-foot wide
pedestrian path on sidewalks or ADA access.
c. Opera-ng Hours: Sandwich board signs must be removed when business is
closed and on display only during regular business hours.
d. Appearance: Sandwich board signs are to be professional in appearance, no
hand-painted signs.
(Reference: City of Palo Alto Sign Code)
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3.8 Waste Management
Clean and well-managed outdoor spaces are essential to public health, sustainability, and street
character. All businesses are responsible for proper waste management in compliance with Palo
Alto’s Zero Waste Ordinance and local sorting requirements.
Requirements
1. Keep parklets, cafe seating areas and adjacent sidewalks free of litter, food waste, and
stains
2. Clean surfaces daily and power-wash at least once per month
3. Prevent debris and liquids from entering storm drains or accumulating near planters
4. Maintain clear access to drainage grates and public infrastructure
5. Provide clearly labeled, color-coded containers for:
o Recycling (blue-tinted liners)
o Compost (green compostable liners)
o Landfill (clear liners)
6. Containers must be accessible, routinely emptied/cleaned, and located so they do not
obstruct pedestrian paths
3.9 Electrical
Requirements
All outdoor hea-ng and ligh-ng systems must be powered safely and in compliance with the
California Electrical Code and City of Palo Alto requirements. Electrical infrastructure must be
reviewed as part of the permit process when installing fixed ligh-ng, overhead hea-ng, or
building-mounted outlets.
1. Power Source
a. A weatherproof GFCI electrical outlet may be installed (with applicable permits)
on the exterior of the building at a minimum of 10 feet above the walking
surface.
i. Electrical power supply to the parklet, including the outlet(s), shall
comply with permanent wiring methods as outlined by the adopted
California Electrical code.
b. Electrical power supply cables between the building and the parklet shall be
secured to one (1) single overhead guide wire between the building and the
parklet structure.
i. No extension cords shall be permiIed for fixed ligh-ng or heaters.
c. No electrical power supply cables or conduits are allowed on or under the
sidewalk.
d. Parklet power sources shall not be pulled from the city sidewalk ligh-ng or
supported by trees.
e. Generators are not allowed in associa-on with parklets.
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2. All equipment must be:
a. UL or ETL cer-fied
b. Rated for outdoor commercial use
3. Not allowed
a. Televisions are not permiIed in parklets
b. Amplified sound is not permiIed on parklets. Any ambient sound may only
originate from the interior of the business’s occupied building.
c. Extension cords or power strips
3.10 Lighting
Design Guidance
Thoughtful, human-scale lighting improves comfort, safety, and appearance and contributes
significantly to street attractiveness. Businesses are encouraged to:
• Use ambient ligh-ng for general glow, task ligh-ng for tables, and accent ligh-ng for
architectural features or planters
• Select fixtures that complement storefront architecture and minimize visual cluIer
• Maintain consistent spacing of ligh-ng to reduce dark spots
Requirements
Businesses shall comply with the following standards, consistent with the City of Palo Alto
Lighting Ordinance at Lighting Ordinance Update – City of Palo Alto, CA and the California
Electrical Code:
1. Requirements
a. Rated for wet loca-on exterior use, listed and carry a product cer-ficate for its
intended use by a recognized electrical tes-ng laboratory.
b. Ligh-ng shall be the lowest intensity and energy use adequate for its purpose
and be designed to focus illumina-on downward to avoid excessive illumina-on
above the light fixture with a maximum of 100 waIs or 1600 lumens, whichever
is greater, per fixture.
c. Aim downward and be fully shielded to reduce glare and light spill (except string
lights).
d. Use warm-colored lights (2,700 Kelvin or less).
e. Turn off or use mo-on controls by 11 p.m., two hours ater business closing, or
one hour ater when exterior areas are no longer in use, whichever is later.
f. String lights, lanterns and other suspended decora-ve features spanning
between a building and a parklet are not permiIed.
2. Allowed Fixture Types:
a. LED-only ligh-ng
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b. String lights, wall-mounted downlights, solar or rechargeable table lamps or
other shielded, glare reducing fixtures
3. Electrical Power & Installa-on:
a. Power supply can come from a weatherproof GFCI outlet mounted on the
building (minimum 10 feet above ground) or solar powered illumina-on
b. Wiring must follow permanent wiring methods per the California Electrical Code
and run via a single overhead guide wire
c. No extension cords, power strips, or generator use
d. If installing permanent ligh-ng on the parklet or adding the exterior GFCI
receptacle at the building per Sec-on 3.8 Electrical, an electrical permit shall be
obtained and shall comply with permanent wiring methods per adopted
California Electrical Code.
e. Electrical equipment must be UL or ETL cer-fied for outdoor commercial use
4. Permits:
a. An electrical permit is required for all wiring and associated outlets.
3.11 Heating
Requirements
Outdoor heating may be used to enhance comfort in colder weather. Electric and propane
(LPG) heaters that meet City safety and permitting requirements are permitted. All heaters
must be weather rated, certified for outdoor commercial use, and installed per manufacturer
instructions and applicable fire/electrical codes.
Electric Radiant or Infrared Heaters
1. Suitable for wet locations and labeled for outdoor commercial use.
2. Any electrical equipment must be listed and carry a product cer-ficate for its intended
use by a recognized electrical tes-ng laboratory.
3. Located and installed per manufacturer requirements.
4. Meet City installation requirements, including:
a. Comply with power supply requirements in Section Electrical
b. Placed a minimum of 3 feet from combustibles or as required by Manufacturer’s
installa-on instruc-on, whichever is more restric-ve. The backside of radiant
heaters can be closer than three feet as long as installed per manufacturer ’s
specifica-ons.
c. Mounted securely
d. Ensure adequate airflow, and avoid installa-on in exposed, high-wind areas
e. Electrical cords must be rated for outdoor use, protected, and must not pose a
trip hazard
f. Do not place heaters on pedestrian paths of travel, including on sidewalks or in
any required accessible clearance zones
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5. A fire ex-nguisher is required to be mounted within sight and have appropriate signage
per the Fire Code.
Propane Heaters
1. PermiIed with an approved HAZMAT permit and CERS submiIal.
2. HAZMAT permit is required for storage and use of liquid propane gas. A site plan with
the desired loca-on of each heater is required at -me of the hazmat permit applica-on.
All storage loca-ons and use areas must be noted in the HAZMAT permit applica-on and
approved during fire inspec-on. A final onsite hazmat inspec-on will be conducted to
ensure the proper spacing of heaters from combus-bles and emergency access/egress
and storage of LPG.
a. Proposed outdoor storage of 20-pound containers requires plan review and
inspec-on.
b. On-site storage of 20-pound propane containers (5 gal) is prohibited indoors.
c. Propane storage is not allowed in the public right-of-way.
d. If businesses do not have an approved private outdoor storage area, all propane
containers must be removed from the premises at the close of business every
day.
e. LPG Heaters are not permiIed on the sidewalk in the pedestrian path of travel
f. LPG heaters cannot be placed underneath overhead canopies, awnings, inside
buildings or tents and they must have 5-feet clearance from any flammable
materials
g. Any use of a portable heater, portable generator, candles, open flame, or any
ac-vity regulated by the Fire code must be approved and permiIed by the Palo
Alto Fire Department separately from the outdoor ac-va-on encroachment
permit.
3. A fire ex-nguisher is required to be mounted within sight and have appropriate signage
per the Fire Code. A minimum 2-A:10-B:C rated fire ex-nguisher is required, to be
mounted 5 feet above the floor. Must be located in conspicuous loca-ons along normal
paths of travel and must not be obstructed or obscured from view with appropriate
signage. CFC 906
Item 16
Attachment A - Car Free
California Avenue Outdoor
Activation Standards
26.06.01
Item 16: Staff Report Pg. 38 Packet Pg. 374 of 441
30
CHAPTER 4 — ENCROACHMENT PERMITS
4.1 Permit Process
The Outdoor Activation permit process is as follows:
1. Any applicant seeking to install an Outdoor Ac-va-on space in the public right-of-way in the
City of Palo Alto must apply for and receive a valid Encroachment Permit before beginning
construc-on of the Outdoor Ac-va-on space. The permit applica-on will be reviewed by
the Department of Public Works and other relevant City departments, prior to approval.
Businesses are encouraged to reach out to Public Works in advance to discuss parklet sizing
and design.
2. The Department of Public Works shall be an applicant’s primary point of contact.
3. Construc-on of an Outdoor Ac-va-on space cannot begin un-l a permit applica-on has
been approved, and the permit issued to the applicant. If work begins prior to approved
applica-on, the Outdoor Ac-va-on space materials will be removed, and the applicant will
be fined.
4. Prior to serving patrons and otherwise opera-ng the Outdoor Ac-va-on space, the Outdoor
Ac-va-on space must be inspected by the Department of Public Works and approved for
use.
5. An eligible establishment with a valid Encroachment Permit may construct and operate an
Outdoor Ac-va-on space subject to the standards and requirements contained in this
document, applicable sec-ons of the Palo Alto Municipal Code (PAMC), other documents
associated by reference, and other documents declared relevant by the Director of Public
Works and his or her designee.
6. The city reserves the right to approve, condi-onally approve, modify or deny any parklet
applica-on as its sole discre-on, including based on input from u-li-es staff and public
safety considera-ons. Submission of an applica-on does not guarantee approval, and the
city may revoke or modify a permit at any -me if deemed necessary for public health, safety,
welfare or u-lity access.
4.2 Submittal Requirements
1. Drawing Set
a. Site Plan
i. Site plan shall be drawn to scale on 11 x17 tabloid paper, including all
per-nent dimensions and the following informa-on:
ii. Loca-on of the business frontage
iii. Dimensions of the outdoor ac-va-on area
iv. ADA accessibility measurements
v. Setbacks from adjacent property lines and the accessway
Item 16
Attachment A - Car Free
California Avenue Outdoor
Activation Standards
26.06.01
Item 16: Staff Report Pg. 39 Packet Pg. 375 of 441
31
vi. Loca-on of public u-li-es including any manhole covers, guIer drains,
fire hydrants, and FDCs, light poles, etc. and their distances to the
outdoor ac-va-on area and proposed improvements
vii. Any adjacent installa-ons on the sidewalk including u-lity boxes, street
signs, bike racks, street furniture, street trees, tree wells, etc. and their
distances to the outdoor ac-va-on area and proposed improvements
viii. Crosswalks, bus stops, driveways and their distances to the outdoor
ac-va-on area and proposed improvements
ix. Width of sidewalk
x. Planters
xi. Loca-ons and extent of affected neighbors and their adjacent businesses
xii. Storm water drainage
b. Floor Plan
i. Floor Plan for the proposed outdoor ac-va-on area showing the
following informa-on:
ii. Total number and loca-on of tables and seats and/or benches
iii. Dimensions of tables, seats, and benches and other furniture
c. Eleva-ons
i. Eleva-on drawing showing the following information:
ii. Height and design of plalorm railings/enclosure
iii. Height and design of roof (if applicable)
iv. Hea-ng, ligh-ng, other electrical equipment
v. Electric power supply connec-on (show distance from ground to overhead
wire)
vi. Signage (if applicable)
vii. Storm water drainage
viii. Cross-sec-on drawing of parklet
d. Architect/Engineer/Construc-on firm contact (if applicable)
e. Construc-on Drawings showing the following informa-on:
i. Structural drawings
ii. Structural calcula-ons for the enclosure
iii. Complete roof framing plan (for parklets with roofs), including the
following:
1. Horizontal and ver-cal bracing,
2. Structural calcula-ons that meet the standards in the
current 2025 California Building Code.
3. Stamp and signature from a licensed civil and/or structural
engineer who is registered in the State of California
i. Hea-ng, ligh-ng, other electrical equipment
ii. Electrical power connec-on/source
2. Pictures of Exis-ng Condi-ons
a. The applica-on should include at least three photos showing exis-ng public right-
of-way for the proposed outdoor ac-va-on area, including the proposed
Item 16
Attachment A - Car Free
California Avenue Outdoor
Activation Standards
26.06.01
Item 16: Staff Report Pg. 40 Packet Pg. 376 of 441
32
sidewalk and roadway area to be converted into an outdoor ac-va-on area,
adjacent sidewalk and store frontage of the proposed business and adjacent
store frontages
3. List of Materials and Equipment
a. Materials paleIe showing the following informa-on:
b. Proposed materials for plalorm
c. Proposed materials for railings/enclosures
d. Roof material (if applicable)
e. Equipment sheet including image of equipment and any manufacturer
instruc-ons
4. Outdoor Ac-va-on Informa-on
a. Proposed use
b. Business hours of opera-on
c. Use of Parallel or angled parking spaces
5. Business Informa-on
a. Address
6. Business Owner Informa-on
7. Property Owner Informa-on (if different from applicant)
8. Insurance Documents
9. LeIer(s) of Consent – A parklet applicant must get a leIer of consent from the
neighboring ground-floor tenant(s) if the applicant’s parklet extends beyond their own
storefront (see Appendix A). If the neighboring ground-floor property is vacant, then a
leIer of consent is not required for the dura-on of the permit.
a. Parklet sponsor must obtain an up-to-date leIer of consent for any future license
renewals as requested by Public Works during future permit renewal processes.
i. If a parklet sponsor cannot obtain an up-to-date leIer of consent, or if
parklet occupancy is not in accordance with the terms of any applicable
law, these regula-ons, and/or any permit requirement, the parklet
sponsor is responsible for the removal of any structure of the parklet
permit extending into a neighboring frontage within 90-days.
10. Indemnity Acknowledgement
4.3 Failure to Maintain
Failure to Maintain an Outdoor Ac-va-on: Sponsor who fails to properly and sufficiently
maintain the cleanliness, safety, and accessibility of their space may be subject to viola-ons and
fines. If maintenance issues are not resolved, the City may revoke the encroachment permit,
and the sponsor may be required by the City to remove the Outdoor Ac-va-on space at their
own expense.
4.4 Utility Maintenance and Public Safety
Because an Outdoor Ac-va-on space may sit atop buried u-li-es, there may be instances
where it will need to be removed to access, clean, maintain, repair or other ac-on to the
Item 16
Attachment A - Car Free
California Avenue Outdoor
Activation Standards
26.06.01
Item 16: Staff Report Pg. 41 Packet Pg. 377 of 441
33
u-li-es beneath it. In the event of necessary u-lity maintenance or the unlikely event of a u-lity
failure such as a gas leak or water main break that threatens public safety, the City may request
the sponsor to move a plalorm or other improvement, or the City or u-lity owner may remove
improvements with liIle or no no-ce. The sponsors are responsible for the cost of reinstalling
and restoring any damage to the Outdoor Ac-va-on space. In instances of advanced no-ce
(such as street repaving, planned maintenance, etc.), the sponsor may need to remove and
reinstall the Outdoor Ac-va-on space at their sole expense. If the sponsor cannot remove the
space, the City will remove it at the sponsor’s expense. Sponsor accepts street repairs may
occur at any -me and may involve heavy construc-on work, noise, dust, vibra-on, traffic
disrup-ons and temporary or extended loss of use of the outdoor ac-va-on space, without
compensa-on from the city, and for which the City or u-lity owner is not responsible for any
impact of inconvenience.
Fire hydrants are rou-nely flushed for removing sediments and tes-ng the hydraulic capacity of
the drinking water system. The sponsor will be responsible for removing any items within the
drainage path of a hydrant being flushed. 6.5" of guIer space is insufficient for adequate
drainage for any flushing of fire hydrants. Sponsors accept fire hydrants may be flushed at any
-me. The sponsors will allow hosing and bypasses to be installed across plalorms and through
the ac-va-on space. Sponsors accept that plalorms may cause flooding. The sponsors are
responsible for the cost of reinstalling and restoring any damage to the outdoor ac-va-on
space, caused during any ac-vity to flow a fire hydrant flow.
4.5 Removing an Outdoor Activation Area
If the Outdoor Ac-va-on sponsor decides they no longer want to maintain an Outdoor
Ac-va-on space, the sponsor is responsible for no-fying the City and removing it at the
sponsors’ own expense. Immediately upon removal the Outdoor Ac-va-on area shall be
cleaned and restored to its previous condi-on to the sa-sfac-on of the City.
4.6 Extension Beyond Establishment
Outdoor Ac-va-on areas may extend beyond the applicant’s store front with a leIer of consent
from neighboring ground-floor tenants. If an outdoor ac-va-on area extends in front of
neighboring storefront(s) or proposes to extend in front of neighboring storefront(s), wriIen
no-ce will be sent to the affected neighbor(s) at the -me of permit applica-on and annual
renewal. The business adjacent to the affected neighbor(s) will also receive no-ces.
• If the neighboring ground-floor property is vacant, then the leIer of consent is not required
for the dura-on of the permit. Outdoor ac-va-on sponsors must obtain an up-to-date leIer
of consent for any future license renewals as requested by Public Works during future
permit renewal processes.
• If Outdoor ac-va-on sponsor cannot obtain an up-to-date leIer of consent, or if the
outdoor ac-va-on space occupancy in not in accordance with the terms of any applicable
law, these regula-ons, and/or any permit requirement, the outdoor ac-va-on sponsor is
Item 16
Attachment A - Car Free
California Avenue Outdoor
Activation Standards
26.06.01
Item 16: Staff Report Pg. 42 Packet Pg. 378 of 441
34
responsible for the removal of any structure on the outdoor ac-va-on permit extending into
a neighboring frontage within 90-days.
• If the affected neighbor(s) or adjacent business wish to claim the same space for their own
outdoor ac-va-on area, they must no-fy the city in wri-ng within 30 days of the no-ce.
• If a compe-ng claim for the space from the adjacent business is confirmed, the affected
neighbor has priority over the space. However, an outdoor ac-va-on area permit
applica-on must be submiIed by the affected neighbor within 60 days of the first no-ce to
claim the space.
• If a compe-ng claim for the space from the adjacent business is confirmed, and the affected
business does not claim the space, the adjacent business and original outdoor ac-va-on
area permiIee shall split the space.
• The space shall be split from the centerline.
• If applicable, an outdoor ac-va-on area sponsor must remove and/or alter their outdoor
ac-va-on area (applying for applicable permits) within 90 days of receiving no-ce of a
compe-ng claim for the space(s).
• related disrup-ons, for which the City or u-lity owner is not responsible for any impact of
inconvenience.
4.7 Outdoor Activation Area Fees
Outdoor Ac-va-on spaces are subject to the following fees outlined in the City’s Fee Schedule.
1. Permit Applica-on Fee
2. Deposit Fee (refundable). This deposit will be used to cover the cost of restoring the
right-of-way to its original condi-on if not done so by the permiIee. This includes, but is
not limited to, the following:
a. Removing the Outdoor Ac-va-on space structure
b. Removing bolts in the curb and the right-of-way and filling in holes
c. Removing exposed wiring
d. Repairing damage to the sidewalk
e. Removing construc-on debris and/or garbage
f. Parking or traffic control striping
g. Wheel stop removal or reinstalla-on
3. Permit Renewal Fee
4. Annual License Fee
a. This fee will be charged per square foot based on the total Outdoor Ac-va-on
space plalorm area
4.8 Sharing Parklets
Businesses are allowed to share a parklet under these rules:
1. The parklet must be owned and operated by a single business and the City will issue a
permit only to a single business. If an applicant desires to allow other businesses to share
the parklet, the permiIee of record will remain the responsible party for all requirements,
Item 16
Attachment A - Car Free
California Avenue Outdoor
Activation Standards
26.06.01
Item 16: Staff Report Pg. 43 Packet Pg. 379 of 441
35
including fees, insurance, and compliance with all laws, regula-ons, and permits. The
permiIee will also be responsible for all penal-es. Businesses must agree amongst
themselves how to share these responsibili-es and risks.
2. Applicants must comply with the LeIer of Consent requirements if they desire to use
adjacent space, even if they intend to share the parklet with that neighboring business.
3. The City is not a party to any contract between the businesses sharing the parklet and will
not mediate such issues between businesses.
Item 16
Attachment A - Car Free
California Avenue Outdoor
Activation Standards
26.06.01
Item 16: Staff Report Pg. 44 Packet Pg. 380 of 441
Item 16Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report Pg. 45 Packet Pg. 381 of 441
Item 16Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report Pg. 46 Packet Pg. 382 of 441
Item 16Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report Pg. 47 Packet Pg. 383 of 441
Item 16Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report Pg. 48 Packet Pg. 384 of 441
Item 16Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report Pg. 49 Packet Pg. 385 of 441
Item 16Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report Pg. 50 Packet Pg. 386 of 441
Item 16Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report Pg. 51 Packet Pg. 387 of 441
Item 16Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report Pg. 52 Packet Pg. 388 of 441
“
CONTACT:
SCALE:
05-18-2026
DATE SET ISSUE
phone: 415.637.2460
email: info@REIBuildup.com
231 Cross Rd, Oakland, CA 94618
REI Build Up Design
structural engineer:
City Stamps
ALI A RASIA
FORPDERETSIGE
R EENIGNELANOISS
R
STRUCTURAL
E
STAT OEF LAC FIOR AIN
Exp.
I
F
B
AS NOTED
PERMIT SET
S1.0
GENERAL
STRUCTURAL NOTES
Item 16Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report Pg. 53 Packet Pg. 389 of 441
CONTACT:
SCALE:
05-18-2026
DATE SET ISSUE
phone: 415.637.2460
email: info@REIBuildup.com
231 Cross Rd, Oakland, CA 94618
REI Build Up Design
structural engineer:
City Stamps
ALI A RASIA
FORPDERETSIGE
R EENIGNELANOISS
R
STRUCTURAL
E
STAT OEF LAC FIOR AIN
Exp.
I
F
B
AS NOTED
PERMIT SET
S2.0
FLOOR & ROOF
FRAMING PLANS
(CABANA)
3/4" THICK PLYWOOD SHEATHING w/ 10d NAIL @ 6" OC AT
PERIMETER EDGE NAILING @12" OC AT INTERIOR NAILING.
PROVIDE 2x BLKG AT ALL PERIMETER AND EDGES, TYP
Item 16Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report Pg. 54 Packet Pg. 390 of 441
CONTACT:
SCALE:
05-18-2026
DATE SET ISSUE
phone: 415.637.2460
email: info@REIBuildup.com
231 Cross Rd, Oakland, CA 94618
REI Build Up Design
structural engineer:
City Stamps
ALI A RASIA
FORPDERETSIGE
R EENIGNELANOISS
R
STRUCTURAL
E
STAT OEF LAC FIOR AIN
Exp.
I
F
B
AS NOTED
PERMIT SET
S2.1
FLOOR & ROOF
FRAMING PLANS
(PERGOLA)
3/4" THICK PLYWOOD SHEATHING w/ 10d NAIL @ 6" OC AT
PERIMETER EDGE NAILING @12" OC AT INTERIOR NAILING.
PROVIDE 2x BLKG AT ALL PERIMETER AND EDGES, TYP
Item 16Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report Pg. 55 Packet Pg. 391 of 441
CONTACT:
SCALE:
05-18-2026
DATE SET ISSUE
phone: 415.637.2460
email: info@REIBuildup.com
231 Cross Rd, Oakland, CA 94618
REI Build Up Design
structural engineer:
City Stamps
ALI A RASIA
FORPDERETSIGE
R EENIGNELANOISS
R
STRUCTURAL
E
STAT OEF LAC FIOR AIN
Exp.
I
F
B
AS NOTED
PERMIT SET
S2.2
CABANA
ELEVATIONS
NOTE:
ELEVATION ONLY SHOWS NO FLOOR JOIST
OPTION. REFER TO PERGOLA ELEVATION FOR
FLOOR JOIST OPTION, SMILAR.
S.A.D. WHERE CURB OCCUER
NOTE:
ELEVATION ONLY SHOWS NO FLOOR JOIST
OPTION. REFER TO PERGOLA ELEVATION FOR
FLOOR JOIST OPTION, SMILAR.
S.A.D. WHERE CURB OCCUER
NOTE:
ELEVATION ONLY SHOWS NO FLOOR JOIST
OPTION. REFER TO PERGOLA ELEVATION FOR
FLOOR JOIST OPTION, SMILAR.
S.A.D. WHERE CURB OCCUER
NOTE:
ELEVATION ONLY SHOWS NO FLOOR JOIST
OPTION. REFER TO PERGOLA ELEVATION FOR
FLOOR JOIST OPTION, SMILAR.
S.A.D. WHERE CURB OCCUER
Item 16Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report Pg. 56 Packet Pg. 392 of 441
CONTACT:
SCALE:
05-18-2026
DATE SET ISSUE
phone: 415.637.2460
email: info@REIBuildup.com
231 Cross Rd, Oakland, CA 94618
REI Build Up Design
structural engineer:
City Stamps
ALI A RASIA
FORPDERETSIGE
R EENIGNELANOISS
R
STRUCTURAL
E
STAT OEF LAC FIOR AIN
Exp.
I
F
B
AS NOTED
PERMIT SET
S2.3
CABANA
ELEVATIONS
NOTE:
ELEVATION ONLY SHOWS NO FLOOR JOIST
OPTION. REFER TO PERGOLA ELEVATION FOR
FLOOR JOIST OPTION, SMILAR.
S.A.D. WHERE CURB OCCUER
NOTE:
ELEVATION ONLY SHOWS NO FLOOR JOIST
OPTION. REFER TO PERGOLA ELEVATION FOR
FLOOR JOIST OPTION, SMILAR.
S.A.D. WHERE CURB OCCUER
NOTE:
ELEVATION ONLY SHOWS NO FLOOR JOIST
OPTION. REFER TO PERGOLA ELEVATION FOR
FLOOR JOIST OPTION, SMILAR.
S.A.D. WHERE CURB OCCUER
Item 16Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report Pg. 57 Packet Pg. 393 of 441
CONTACT:
SCALE:
05-18-2026
DATE SET ISSUE
phone: 415.637.2460
email: info@REIBuildup.com
231 Cross Rd, Oakland, CA 94618
REI Build Up Design
structural engineer:
City Stamps
ALI A RASIA
FORPDERETSIGE
R EENIGNELANOISS
R
STRUCTURAL
E
STAT OEF LAC FIOR AIN
Exp.
I
F
B
AS NOTED
PERMIT SET
S2.4
PERGOLA
ELEVATIONS
Item 16Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report Pg. 58 Packet Pg. 394 of 441
CONTACT:
SCALE:
05-18-2026
DATE SET ISSUE
phone: 415.637.2460
email: info@REIBuildup.com
231 Cross Rd, Oakland, CA 94618
REI Build Up Design
structural engineer:
City Stamps
ALI A RASIA
FORPDERETSIGE
R EENIGNELANOISS
R
STRUCTURAL
E
STAT OEF LAC FIOR AIN
Exp.
I
F
B
AS NOTED
PERMIT SET
S3.0
STRUCTURAL
DETAILS
Item 16Attachment B - Car Free California Avenue Pre-Approved Parket Plans
Item 16: Staff Report Pg. 59 Packet Pg. 395 of 441
NOT YET APPROVED
1
Ordinance No. ____
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. The City authorizes parklets for outdoor dining and other uses in PAMC Chapter 12.11.
B. The City Council now desires to allow duly permitted parklet permittees to post certain
kinds of signs in conjunction with a parklet without certain design reviews or toward
counting toward maximum sign area or number limits.
SECTION 2. Subsection (c) is hereby added to section 16.20.160 (Special Purpose Signs)
of Chapter 16.20 (Signs) of Title 16 (Building Regulations) of the Palo Alto Municipal Code to
read as follows:
(c) Parklet Permit Required for Certain Parklet Signs. Signs for the special purposes set forth in
this subsection (c) are permitted as provided herein without design review or permit issued
under this Chapter as long as: (1) the applicable regulations for the parklet allow for one or
more types of the signs below; (2) the sign(s) meet all requirements under PAMC Chapter 12.11
and its applicable regulations; and (3) the sign(s) (including design, placement, size, and any
other requirements) are approved by valid parklet permit issued under PAMC Chapter 12.11.
(1) One wall sign affixed to or painted on the parklet. A sign in compliance with this
subsection shall not be in violation of PAMC section 16.20.130 and shall not count toward any
limits on number or area of signs in section 16.20.130 (Wall signs) or 16.20.170 (Combinations
of signs).
(2) One freestanding sign. A sign in compliance with this subsection shall not be in violation
of PAMC section 16.20.100(a) and shall not count toward any limits on number or area of signs
in section 16.20.120 (Freestanding signs) or 16.20.170 (Combinations of signs).
SECTION 3. Severability. If any provision, clause, sentence or paragraph of this
ordinance, or the application to any person or circumstances, shall be held invalid, such
invalidity shall not affect the other provisions of this Ordinance which can be given effect
without the invalid provision or application and, to this end, the provisions of this Ordinance
are hereby declared to be severable.
SECTION 4. Effective Date. This ordinance shall be effective on the 31st day after
adoption.
SECTION 5. CEQA. The City Council finds and determines that this categorically exempt
under CEQA regulation 15303 (new construction or conversion of small structures).
Item 16
Attachment C- Ordinance
Amending the Sign Code
(PMAC section 16.20.160)
Item 16: Staff Report Pg. 60 Packet Pg. 396 of 441
2
INTRODUCED:
Item 16
Attachment C- Ordinance
Amending the Sign Code
(PMAC section 16.20.160)
Item 16: Staff Report Pg. 61 Packet Pg. 397 of 441
1 23456789
10111213
20
21222325
24
26
27
T T T T
TTT
T
T
T
81'
MH-043-2-21
-043-2-13
DEPTH 3.86'
12"SD
10+00
10+50
11+00
11+50
10+00
10+50
11+00
B-48
CV B-16 B-9
B-16 M
B-16M
B-9
B-16M
M
SCALE: 1" = 20'
Story (4)
0’20’40’60’80’100’
1”=20’
Legend
Pedestrian Crossing
Pedestrian Pavement
Markings
Cafe Seating
Parklet
Setback
Gas Main
Retail
Restaurant
Commercial
Service/Office
VacantBike Racks
Farmers Market Tent
Tactile Directional
Indicator
Car Free California Avenue - Illustrative Plan Pedestrian Priority Public Space, Commercial Setbacks and
Build-out of Pre-Approved Parklets & Cafe Seating
City of Palo Alto
5/14/26
El
C
a
m
i
n
o
R
e
a
l
Bi
r
c
h
S
t
r
e
e
t
Ash Street
Mi
m
o
s
a
L
a
n
e
Joanie’s CafeLa BohemeSekoyaUmeLotusMediterranean
Wrap
Kowa
Ramen
NamasteKali Greek
Bistro
La Bodeguita del MedioIzzy Eye Works Christian
Science
Reading
Room
Hairshaper’s
Club
Leaf & Petal Vin Vino Wine Mini Cat Town Casual
Chic
Salon
Square Pie
Guys
Zareen’sCalifornia Hotel Italico Croissant
California
Cafe
Anatolian
Kitchen
Zombie
Runner
Co ee
Palo
Alto
Sol
Sun of
WolfCountry Sun
Natural FoodsTerun PizzaJin Sho
The
Cobblery414 California Avenue Summit Bikes
California
Paint
Company
Spoke & Weal Performance GainesTerun
Omomi
Lash &
PMU
Abbey
Neuro-
psychology
Clinic
Massage
Therapy
CenterTechCU
Citibank
California Avenue
Optometry
Lee
Aldinger
Insurance
La Jolie
Nails
Salon
Item 16
Attachment D - Pedestrian Priority Public Space with Bikes Allowed Concept
Item 16: Staff Report Pg. 62 Packet Pg. 398 of 441
1 23456789
10111213
20
21222325
24
26
27
T T T T
TTT
T
T
T
81'
MH-043-2-21
-043-2-13
DEPTH 3.86'
12"SD
10+00
10+50
11+00
11+50
10+00
10+50
11+00
B-48
CV B-16 B-9
B-16 M
B-16M
B-9
B-16M
M
SCALE: 1" = 20'
Story (4)
0’20’40’60’80’100’
1”=20’
Legend
Pedestrian Crossing
Pedestrian Pavement
Markings
Cafe Seating
Parklet
Setback
Gas Main
Retail
Restaurant
Commercial
Service/Office
VacantBike Racks
Farmers Market Tent
Tactile Directional
Indicator
Car Free California Avenue - Activation Setback Plan Commercial Use Setbacks and Illustrative Build-out of Pre-Approved Parklets & Cafe Seating
City of Palo Alto
5/14/26
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5
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Joanie’s CafeLa BohemeSekoyaUmeLotusMediterranean
Wrap
Kowa
Ramen
NamasteKali Greek
Bistro
La Bodeguita del MedioIzzy Eye Works Christian
Science
Reading
Room
Hairshaper’s
Club
Leaf & Petal Vin Vino Wine Mini Cat Town Casual
Chic
Salon
Square Pie
Guys
Zareen’sCalifornia Hotel Italico Croissant
California
Cafe
Anatolian
Kitchen
Zombie
Runner
Co ee
Palo
Alto
Sol
Sun of
WolfCountry Sun
Natural FoodsTerun PizzaJin Sho
The
Cobblery414 California Avenue Summit Bikes
California
Paint
Company
Spoke & Weal Performance GainesTerun
Omomi
Lash &
PMU
Abbey
Neuro-
psychology
Clinic
Massage
Therapy
CenterTechCU
Citibank
California Avenue
Optometry
Lee
Aldinger
Insurance
La Jolie
Nails
Salon
Item 16
Attachment E- Car Free California Avenue Setback Plan
Item 16: Staff Report Pg. 63 Packet Pg. 399 of 441
Item 16
Attachment F - User Guide
and Applicant Checklist for
Cal Ave Preapproved
Parklets
Item 16: Staff Report Pg. 64 Packet Pg. 400 of 441
HOW TO PREPARE YOUR APPLICATION
3
PRE-APPROVED PLAN SET
The Pre-approved parklet plans for Cal Ave are available for download on the City's website
here. After reviewing this guide, confirming your eligibility and beginning to plan your
parklet design, work with your contractor to finalize your parklet design and prepare your
plan set. You or or contractor will indicate your parklet information, site plan, and design
selections directly on the pre-approvced plan set in the marked areas. Please fill out ALL
applicable marked areas on the plan set to streamline your permit review process.
DOWNLOAD THE PRE-APPROVED PLAN SET
Go to the City's website to download the
plan set.
www.CityofPaloAlto.org/Parklets
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--
WORK WITH YOUR CONTRACTOR TO PREPARE THE PLAN SET
The green shaded areas of
the plan set indicate the areas
that you and your contractor
must fill out, including:
•Selecting your design
features and parkelt type.
•Filling in the required
parklet information.
•Indicating your materials
choices
•Planning your site and
parklet configuration.CITY OF PALO ALTO PREAPPROVED PARKLETSFORCALAVE-2026 Item 16
Attachment F - User Guide
and Applicant Checklist for
Cal Ave Preapproved
Parklets
Item 16: Staff Report Pg. 65 Packet Pg. 401 of 441
HOW TO PREPARE YOU APPLICATION
4
APPLICATION PROCESS & CHECKLIST
The pre-approved parklet process is outlined below, including the Application Checklist.
Ensure you submit ALL the required checklist items for review.
PREPARE
•Review the Checklist below•Plan your parklet•Determine if you need a letter of consent (see Appendix A)•Consult your contractor and finalize parklet design
APPLICATION CHECKLIST
D Permit Application (See appendix for application)D Certificate of Insurance (See appendix for guidelines)D Letter(s) of Consent (if applicable) (See appendix for sample letter of consent)D Electric Permit (if applicable)□ HAZMAT Permit (if applicable) D Completed Pre-Approved Plan SetD All product specification sheets
MINISTERIAL REVIEW
PLAN APPROVAL, PERMIT PAYMENT & PERMIT ISSUANCE
( CONSTRUCTION & INSTALLATION
INSPECTIONS
( ONGOING MAINTEN ANCE
( PARKLET PERMIT RENEWAL (every year)
PARKLET REMOVAL (as needed)CITY OF PALO ALTO PREAPPROVED PARKLETSFORCALAVE-2026 )
)
)
Item 16
Attachment F - User Guide
and Applicant Checklist for
Cal Ave Preapproved
Parklets
Item 16: Staff Report Pg. 66 Packet Pg. 402 of 441
Item 16
Attachment F - User Guide
and Applicant Checklist for
Cal Ave Preapproved
Parklets
Item 16: Staff Report Pg. 67 Packet Pg. 403 of 441
Item 16
Attachment F - User Guide
and Applicant Checklist for
Cal Ave Preapproved
Parklets
Item 16: Staff Report Pg. 68 Packet Pg. 404 of 441
‐‐‐PW STAFF USE ONLY‐‐‐
SPECIAL PROVISIONS
1.Permittee shall provide the City evidence of Personal Injury and Property Damage insurance in a form acceptable to the City’s
Risk Manager, in the minimum amounts of $2,000,000 each for personal injury and property damage or else as indicated
below. Said insurance shall name the City of Palo Alto, its officers and employees as an additional insured and shall be primary
insurance with any City insurance being excess only. Said insurance shall be maintained so long as this permit remains in force,
and evidence of said current insurance and subsequent renewals shall be submitted to the City of Palo Alto, Public Works
Engineering Division.
2.Encroachment, construction or use shall not extend beyond the area identified and specified as part of this permit.
3.Encroachment shall not restrict visibility to any traffic control devices or signs.
4.No encroachment is permitted in exclusive bike lanes (where parking is not permitted); bus stops, or "no parking zones"
unless specifically authorized within this permit.
5.Encroachment shall not block or cover access to any utility pole, manhole, vault, cleanout, valve, junction or meter box.
6.Permittee shall maintain encroaching or constructed facility and/or the property in a good and safe condition. Construction
shall be in conformance with plans approved by the City.
7.Parklet requires Public Works Inspection prior to the start of construction.
8.Whenever construction, reconstruction or maintenance work to City facilities requires relocation or modification of the
encroachment, construction or use, such relocation or modification work shall be done by Permittee at Permittee's sole
expense.
9.Permittee shall assure adequate visibility of encroachment, construction or use during daytime and nighttime hours.
10.Permittee shall conform to all requirements of the Palo Alto Traffic Control Manual, as applicable.
11.Any public and/or private improvements damaged by the encroaching activities must be repaired or replaced in‐kind to the
satisfaction of the improvement owner and at Permittee expense.
12.Permittee shall comply with all applicable law including the Palo Alto Municipal Code, State and County Health Orders in
effect, and City ordinances, resolutions and regulations/guidelines (including the Parklet Standards, Requirements for parklets
and Weatherization Standards).
13.Permittee shall maintain the site in accordance with the parklet cleanliness standards.
14.See Attachment(s) A B C D E F for additional permit conditions.
15.OTHER:X
(A) This permit does not authorize the use of electric and propane devices.
Such uses require the approval of a separate electrical and hazmat permit.
(B) Expiration provisions: Applicant shall renew this permit within 4 weeks of
expiration. Expiration date is 1 year from date of permit issuance.
(C) Insurance Provisions: See Item 1 above. Applicant shall maintain valid
insurance for the life of the permit.
Item 16
Attachment F - User Guide
and Applicant Checklist for
Cal Ave Preapproved
Parklets
Item 16: Staff Report Pg. 69 Packet Pg. 405 of 441
S:\PWD\ENG\FORMS\Insurance\Insurance Certificate Submission Requirements.docx Rev 3/9/15
To obtain a permit for working or placing a private facility in the public right-of-way or public
property, it is necessary to file with the Public Works Engineering Services Division an approved
insurance certificate prior to permit issuance. See reverse page for sample certificate.
COVERAGE REQUIREMENTS
Coverage Type Requirement Minimum Limits*
EACH OCCURRENCE AGGREGATE
Comprehensive General Liability:
INCLUDING:
Occurrence-based Coverage
Personal Injury
Broad Form Property Damage
Blanket Contractual
Bodily Injury
Property Damage
Bodily Injury & Property
Damage Combined
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
Comprehensive Automobile Liability**:
INCLUDING:
Owned
Hired
Non-Hired
Bodily Injury (Each Person)
Bodily Injury (Each Occurrence)
Property Damage
Bodily Injury & Property
Damage Combined
$1,000,000
$1,000,000
$1,000,000
$1,000,000
* These minimums may be raised for some permits based on the evaluation by the City Risk Manager.
** Automobile liability insurance is required for a Street Work Permit only.
(A)BEST’S KEY RATING GUIDE Required insurance coverage shall be provided through carriers with a Best’s Key
Rating of A:VII or higher and are admitted to do business in the State of California. The certificate of insurance
must be completed and executed by an authorized representative of the company providing insurance. This
required insurance must be maintained for the life of the permit.
(B)ADDITIONAL INSURED For the Comprehensive General Liability policy, provide an endorsement that explicitly
names the city as additional insured with the following statement: “The City of Palo Alto, its Officers, Officials,
Employees, Agents and Volunteers are named additional insured ”. This statement must be placed on a CG 20 12
(Additional Insured - State or Political Subdivision - Permits). The form must state the policy number(s) to which it
applies and be certified by an authorized insurance agent. Reference to this attachment must be provided on the
face of the certificate.
(C)PRIMARY COVERAGE An included endorsement and statement on the certificate specifying the following: “This
insurance is primary coverage and that any city insurance is excess coverage only ”.
(D)CERTIFICATE HOLDER The City of Palo Alto, Public Works Engineering Services Division, 285 Hamilton Avenue Palo
Alto CA 94301, must be named as Certificate Holder.
(E)CRANE WORK Where work involves a crane, riggers coverage shall be provided in the amounts above.
(F)POLICY NUMBERS Relevant policy numbers must be shown on the face of the certificate and all attachments.
(G)INSURED NAME The insured shall be the same party as the applicant. If the application is made for a "d.b.a."
name, that name must also appear on the certificate as an insured.
(H)CANCELLATION The provision for 30 day notice to the City of Palo Alto for cancellation or change of coverage.
(I)EFFECTIVE PERIOD There must be a definite period of applicability. "Open" or "continuous" are not acceptable
expiration dates.
(J)INDEMNIFICATION The liability insurance policy shall include a contractual liability endorsement providing
insurance coverage for the Permittee’s agreement to indemnify the City.
-- Please see reverse for sample certificate –
Insurance Certificate Submission Guide
PUBLIC WORKS
Engineering Services Division
pwecips@cityofpaloalto.org – 650.329.2151
Item 16
Attachment F - User Guide
and Applicant Checklist for
Cal Ave Preapproved
Parklets
Item 16: Staff Report Pg. 70 Packet Pg. 406 of 441
Item 16
Attachment F - User Guide
and Applicant Checklist for
Cal Ave Preapproved
Parklets
Item 16: Staff Report Pg. 71 Packet Pg. 407 of 441
Item 16
Attachment F - User Guide
and Applicant Checklist for
Cal Ave Preapproved
Parklets
Item 16: Staff Report Pg. 72 Packet Pg. 408 of 441
CITY COUNCIL
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: June 1, 2026
Report #: 2605-6397
TITLE
Receive Update and Provide Direction to Staff on the Implementation of Senate Bill 79 (SB 79)
and the Work Related to the Downtown Housing Plan. Adoption of Two Temporary Ordinances
Implementing SB 79, Adopting a Transit Oriented Development Combining District, Excluding
Certain Sites from Government Code Section 65912.157, and Authorizing the Planning and
Development Services Director to Make Corresponding Updates to the Zone Map. CEQA Status:
Exempt Under Government Code section 65912.161(c)(2).
RECOMMENDATION
Staff and the SB 79 / Downtown Housing Plan Ad Hoc recommend that the City Council:
1. Receive an update on the approaches for the implementation of Senate Bill (SB)
79 (2025) and work related to the Downtown Housing Plan;
2. Introduce a temporary ordinance (Attachment B) excluding historic
resources designated on the City’s local register as of January 1, 2025, from the
development standards otherwise applicable under SB 79, through one year following
adoption of the City’s 7th Housing Element;
3. Introduce a temporary ordinance (Attachment C) establishing development standards
for all transit-oriented development (TOD) eligible parcels subject to SB 79 at 50 percent
of the otherwise allowable development capacity authorized under State law, and
simultaneously exempting those properties from default SB 79 standards through one
year following adoption of the City’s 7th Cycle Housing Element;
4. Direct staff to return with interim urgency versions of the above ordinances to be
introduced and adopted on June 15, 2026, when the above ordinances are agendized
for second reading.
5. Direct staff to prepare permanent ordinances to be presented to the Planning and
Transportation Commission, incorporating the provisions of the interim ordinances and
any additional provisions necessary and beneficial in implementation of SB 79.
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6. Direct staff to continue work to advance and complete the Downtown Housing Plan and
amend the scope of work as appropriate to take into consideration implementation of
SB 79.
EXECUTIVE SUMMARY
This item was originally scheduled for the March 9, 2026, City Council meeting and was
rescheduled to the May 4, 2026, City Council meeting, and subsequently to the June 1,
2026, City Council meeting.
SB 79 will take effect on July 1, 2026. The legislation is intended to facilitate the development of
multi-family housing on land located in proximity to qualifying transit stations, thereby
promoting transit-oriented development through the establishment of new minimum
standards for building height, residential density, and floor area. In the City of Palo Alto,
numerous parcels are located within the influence areas of three qualifying transit stations: two
Caltrain stations within the City of Palo Alto and one Caltrain station in the City of Mountain
View adjacent to Palo Alto.
This report provides an overview of the implications of SB 79, outlines the next potential steps
for the citywide implementation of state law through ordinances and policy options for City
Council consideration and direction.
BACKGROUND
SB 79, codified in Government Code Section 65912.155, et seq., supersedes locally adopted
standards for density, floor area ratio (FAR), and height in TOD zones. These new standards are
for housing projects proposed on qualifying sites located within one-half mile of a TOD stop,
provided the development meets specified statutory requirements. Local jurisdictions may
adopt an ordinance to exempt historic properties or may prepare a TOD Alternative Plan that
modifies applicable development standards, subject to review and approval by the California
Department of Housing and Community Development (HCD). Sites within the SB 79 influence
areas zoned at 50 percent of the standards in State law may also be exempted until one year
after the adoption of the 7th cycle Housing Element amendment (January 31, 2032).
On October 22, 20251, staff provided the City Council an update on the Downtown Housing Plan
and an overview of SB 79 and requested direction on the implementation of the State law. The
classification of qualifying transit stops, and key statutory provisions discussed in that
report are highlighted below:
1 October 22, 2025, City Council Staff
Report https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=18007
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Distance from Pedestrian Access Point to a TOD Stop
Tier 1 TOD Stop (Caltrain)Development
Standard Up to ¼-mile Up to ½-mile
“Adjacent”
(within 200’)
Bonus Height,
Density, and
Residential FAR
Height3 75'65'95'
Density 120 du/ac 100 du/ac 160 du/ac
Residential
Floor Area
Ratio (FAR)
3.5 3.0 4.5
The City Council appointed a SB 79 / Downtown Housing Plan Ad hoc Committee
(Councilmembers Burt and Lauing) to further evaluate the implications of SB 79. Staff met with
the Ad hoc Committee three times (January 27th, March 25th, and April 21st) since it was
formed and presented information on areas affected by SB 79, projected residential
development, and policy options for Council consideration.
Staff prepared the May 4, 20264, staff report outlining potential approaches for implementing
State law and identifying options available for the Downtown Housing Plan based on direction
from the Ad hoc Committee. The staff report also presented the Ad hoc Committee’s
recommendations for Council consideration. The discussion was rescheduled at the Council’s
direction. Staff now advise that the Council should select one of the options for addressing SB
79, which requires a local ordinance, that the Council adopt both the urgency and non-urgency
ordinances prior to July 1, 2026. Delaying adoption of the ordinances would create a gap
between the implementation date of SB 79 and the adoption of a local exclusion authorized in
the law.
ANALYSIS
SB 79 implementation is limited to sites that meet specific statutory eligibility criteria, including
applicable zoning designations and proximity to qualifying transit stops (Attachment A).
Metropolitan Transportation Commission (MTC), the region’s designated Metropolitan Planning
3 Note that a qualifying project may use the standards in SB 79 as its base density under state density bonus law;
however, if the project exceeds the City’s height limit due to the provisions of SB 79, the City is not required to
grant an additional height waiver.
4 May 04, 2026, City Council Staff Report
https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=18711&compileOutputType
=1
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Organization, is required to prepare and publish official maps identifying applicable TOD zone
boundaries. Staff has seen preliminary drafts that are generally aligned with staff expectation.7
SB 79 significantly reshapes development near transit:
SB 79 establishes state-mandated maximums for height, density, and FAR on qualifying
parcels near Caltrain stations, substantially limiting the City’s discretion under existing
zoning and adopted planning frameworks. Cities can adopt an Ordinance temporarily
exempting sites that are: within a Very High Fire Hazard Severity Zone, subject to
Flooding, are Historic Resources listed in the local register, or that are zoned for high
density residential use providing at least 50% of the capacity required by SB 79.
Downtown Housing Plan Scope Is Smaller Than SB 79 Impact Area:
While the University Avenue/Downtown Priority Development Area encompasses
approximately 206 acres, the Downtown Housing Plan covers only 76 acres. In contrast,
SB 79 affects a much larger area; approximately 325.23 acres, around the
Downtown/University Avenue Caltrain Station. This includes the Downtown Housing
Plan area, South of Forest Avenue (SOFA) areas, the transit center, and Stanford
Shopping Center.
Historic resources require consideration:
Downtown Palo Alto and the San Antonio Road area contain a high concentration of
historic properties or properties within historic districts. SB 79 includes limited
provisions for the protection of historic resources on the local register. The City is
allowed to adopt an ordinance to temporarily ensure these resources are protected.
Ongoing protection is achievable only by adopting, prior to January 31, 2032, a TOD
Alternative Plan; even then, protected historic resources cannot exceed 10% of the area
7 https://experience.arcgis.com/experience/934f95609d6b45c5be0f8f0030c01436?draft=true
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of a TOD zone under the current law. SB 79 currently does not provide express guidance
on the treatment of historic districts on the State or the National registers, but it
appears that a local ordinance may protect historic districts in addition to individual
historic structures. This is subject to change with additional guidance from HCD.
Small parcel sizes limit realistic redevelopment potential:
Feasibility analysis indicates that parcels smaller than approximately 5,200 square feet
are less likely to redevelop, unless multiple parcels are combined. This reduces
development potential particularly in the Downtown/University Avenue area, limiting
the number of sites that can realistically take advantage of SB 79 standards. Historically,
there has been little interest for lot consolidation in Palo Alto, even with development
incentives.
Redevelopment is likely to occur on a limited subset of eligible land:
Although SB 79 enables substantial theoretical housing capacity across all three station
areas, the realistic capacity is substantially lower and difficult to translate into future
unit production. To illustrate potential housing growth over the next 25 years within
these TOD areas, staff conducted a screening-level analysis that excluded parcels less
likely to redevelop, including those with historic resource designations, properties
redeveloped within the last 25 years, small lots that would not support feasible
redevelopment or meet SB 79 unit density standards, public facility and planned
community zoned properties, transit-owned land, sites with condominium subdivision
maps, and properties with office development exceeding 1.5 times the parcel area.
After applying these filters, staff estimates a more realistic picture of developable
property as follows:
o Downtown/University Avenue Transit Station Area: Approximately 163 acres
o California Avenue Transit Station Area: Approximately 222 acres
o San Antonio Transit Station Area: Approximately 32 acres
Further discounting is necessary, however, because redevelopment is costly and carries
risk for developers. Many property owners will be satisfied leaving their properties as-is
despite the potential for increased housing development. Staff anticipates that the vast
majority of single-family homeowners are unlikely to pursue apartment buildings on
their property, although some may choose to do so. A review of development activity
over the past 25 years shows that only ten percent of all parcels were redeveloped, with
exceedingly few single-family zoned properties converting to multifamily housing.
Applying a ten percent redevelopment factor consistent with this historical activity, and
a one percent factor for single-family zoned property, staff can estimate a theoretical
range of future housing production from SB 79 for each transit station area over the
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next 25 years. These figures are not a projection or formal estimate; they are simply a
calculation based on screening criteria and existing baseline data and are subject to
numerous variables that cannot be fully accounted for through this type of screening-
level analysis.
o Downtown/University Avenue Transit Station Area: Approximately 1600 units
o California Avenue Transit Station Area: Approximately 900 units
o San Antonio Transit Station Area: Approximately 200 units
The above analysis does not account for recent changes to state law that promote
greater development potential including exemptions to the California Environmental
Quality Act, allowances for taller buildings, greater floor area, reduced parking
requirements, and state density bonus concessions and waivers and application
streamlining. These measures add greater predictability to the development process
and may encourage additional property owners to consider redevelopment. During
discussions with the Council Ad hoc Committee, it was recognized that the city can
reasonably anticipate greater housing production over the next 25 years than it has
experienced historically, due in large part to state mandates promoting increased
housing production. In reviewing projected housing demand, the Ad Hoc considered a
realistic capacity up to 20% increase – a potential doubling of the initial staff estimate.
California Avenue faces the greatest zoning shift:
The California Avenue SB 79 area contains a substantial proportion of single-family
zoned property, including larger 10,000 square foot lots in the Old Palo Alto
neighborhood that would not require land consolidation to support apartment
development. New construction built to SB 79 standards may appear contextually
inconsistent with the historic development pattern northeast of the Caltrain station.
The commercial areas along and near California Avenue have seen little significant
redevelopment in recent years, due in part to small lot sizes and the former
requirement for on-site parking, both of which made redevelopment economically
impractical. The interaction of SB 79 with other state laws could catalyze future housing
or mixed-use development, with uncertain implications for the area's retail
environment. New development may also lack coordinated design or placemaking, with
larger parcels likely proving more attractive for redevelopment than smaller ones.
San Antonio Road area raises unique historic district uncertainties:
San Antonio Road area includes large concentrations of Eichler homes and a designated
historic district listed on the National Register. SB 79’s treatment of historic districts,
where individual properties are not separately listed, may be the subject of additional
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guidance from HCD. Because exclusion of historic sites is limited to 10% of TOD land
area after January 31, 2032, not all historic sites can be protected in the long term.
The Economic Feasibility Analysis prepared for the Downtown Housing Plan remains rele
vant:
While SB 79 provides development opportunities to owners of qualifying properties, the
feasibility of such projects depends on market conditions, broader market trends, site
constraints, competing uses, impact fees, and inclusionary housing requirements. This is
outlined in the Economic Feasibility Analysis prepared for the Downtown Housing Plan,
which was included as Attachment A to the October 22, 2025, City Council Staff Report9.
State Density Bonus Law:
SB 79 projects are eligible to use State Density Bonus Law to seek a density bonus,
incentives or concessions, waivers or reductions for development standards and parking
ratios10. The density allowed under SB 79 serves as the base density for calculating the
density bonus. However, a project proposing a height allowed by SB 79 that is more
than the local height limit is ineligible for a waiver for additional height beyond that
specified in SB 79. This does not apply for 100% affordable projects located within one-
half mile of a major transit stop.
Assembly Bill (AB) 130 (2025):
AB 130 (2025)11 significantly streamlines housing development approvals in urban
communities by creating a new statutory exemption from CEQA for qualifying infill
residential projects. This means that qualifying residential or mixed-use infill projects
(generally up to 20 acres) that are consistent with either applicable Comprehensive Plan
or zoning regulations (as modified by SB 79 and/or state density bonus law) could
bypass CEQA review entirely, with an accelerated permitting timeline. The exemption
applies to projects meeting minimum density thresholds, and site qualifications (i.e., not
located in floodplains, fault zones, wetlands, or very high fire severity zones, not a
hazardous waste site, and not demolishing a historic structure).
AB 130 amends the Permit Streamlining Act by imposing strict timelines for City review
and approval. If the City does not act within 30 days following its objective standards
review and the required tribal consultation, a project may be deemed automatically
approved. This substantially reduces staff’s ability to present projects for review by the
ARB, PTC, or City Council.
9 October 22, 2025, City Council Staff
Report: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=18007
10 https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=65915&lawCode=GOV
11 https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB130
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Developers must comply with the new labor standards for 100% affordable housing
projects and buildings over 85 feet in height, meet air quality requirements, and
perform contamination cleanup as appropriate. The law does not alter State Density
Bonus Law provisions, including waivers and parking reductions. This means that in
addition to the increased FAR permitted under SB 79, developers could seek to waive
maximum lot size limitations in residential zones, setbacks, open space requirements,
site coverage, daylight plane requirements, or even retail preservation requirements
through the State Density Bonus Law.
Assembly Bill (AB) 2097 (2022): AB 2097 (2022)15:
Eliminates minimum parking requirements for new development (residential,
commercial, and most other uses) located within one-half mile of high-quality transit
service (i.e., major transit stops such as the Caltrain Station). This essentially prohibits
local governments from enforcing minimum parking requirements for qualifying
projects. In Palo Alto, the State law is applicable to all properties that lie within one-half
mile radius of the University Avenue, California Avenue, and San Antonio Road Caltrain
Stations.
Assembly Bill (AB) 2576 (2026): AB 2576 (Harabedian):
Currently under consideration in the California Legislature, proposes amendments to
the provisions of SB 79. As currently drafted, AB 2576 would expand the definition of
eligible historic resources to expressly include resources in the local and State registers.
Additionally, it would remove the existing limitation that restricts the exclusion of
historic resource sites to no more than 10 percent of the total TOD zone area. At the
time of this report, AB 2576 remains pending in the State Legislature and has not been
enacted.
Other bills under consideration during this legislative session that would amend SB 79 do not
have any impact to Palo Alto at this time but could be further amended before this session
ends.
SB 79 Implementation Options:
On January 27, 2026, staff presented four potential approaches to implementing SB 79 based
on what the State law permits to the Ad hoc, each reflecting varying levels of effort and scope.
These approaches considered:
Existing and ongoing planning initiatives;
15 https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB2097
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Anticipated additional workload and its potential impact on City Council priorities for
the current year;
Expected near term planning initiatives;
Staff capacity and available resources;
Fiscal implications;
Opportunities for community engagement; and
Review and approval timeline established by HCD pursuant to the state law.
While all four approaches advance the State’s pro-housing objectives, they differ in the degree
to which the City exercises local control. The City may choose to allow SB 79 to preempt local
codes, adopt an ordinance clarifying how SB 79 applies locally, including exclusion of historic
properties, adopt an ordinance upzoning and temporarily exempting non-historic parcels in the
TOD zones, and/or prepare a Transit-Oriented Development (TOD) Alternative Plan, based on
the considerations outlined above. A TOD Alternative Plan requires environmental assessment
and is subject to HCD review.
In addition, the Ad Hoc reviewed options related to the Downtown Housing Plan and
consideration of whether this effort should continue in light of SB 79 broader reach over the
Downtown area. Discontinuing work on the Downtown Housing Plan would not require the City
to return MTC grant funds that have already been paid to the City.
Four SB 79 implementation approaches are listed below. The Ad Hoc recommends a
combination of Approach 2 and 3 below.
Approach 1: No action on SB 79
Under this approach, the default development standards established by SB 79 would
take effect on July 1, 2026, for all qualifying TOD zones. This approach requires no action
by the City and no review by HCD, resulting in automatic compliance with State law.
However, it provides the least amount of local control and community input and does
not protect historic resources.
Approach 2: Adopt a Local Implementing Ordinance / Protect Historic Resources
Under this approach, the default SB 79 standards would still take effect on July 1, 2026,
but the City would adopt an ordinance clarifying the application of SB 79 locally and
identify sites that are exempt. This approach provides additional local control and
community input and allows for the temporary exemption of historic resources.
Adoption of the ordinance would be subject to HCD review; however, prior approval is
not required. If this option were selected, staff recommend adoption of both a
temporary ordinance and an interim urgency ordinance, with the first reading of the
Item 17
Item 17 Staff Report
Item 17: Staff Report Pg. 9 Packet Pg. 417 of 441
temporary ordinance at tonight’s meeting, followed by a second reading on the consent
calendar on June 15, 2026, at which time the interim urgency measure would also be
introduced and adopted. This approach ensures that there is no “gap,” after July 1, 2026
and before the temporary ordinance becomes effective, where historic resources are
not protected. The permanent ordinance adoption through the Planning and
Transportation Commission (PTC) and City Council will happen later in the year. SB 79
includes a statutory exemption from CEQA review for ordinances that implement the
new state law. All ordinances implementing SB 79 are subject to review and approval by
HCD.
Approach 3: Rezone all TOD eligible sites to allow 50 percent of the SB 79 development p
otential
Pursuant to Government Code Section 65912.161(b), sites can be exempted from SB 79
default standards through January 31, 2032, if they allow at least 50 percent of SB 79
base density standards. Under this approach, the City would amend the zoning to allow
TOD-eligible sites to meet this 50% threshold standard and subsequently exempt those
sites from SB 79 until January 31, 2032. This option provides the city approximately six
years to consider advancing a TOD Alternative Plan to address future housing
production and plan for infrastructure upgrades in anticipation of future growth. The
cities of Los Angeles and San Francisco are both reportedly exploring this option17.
Should the Council select this approach, staff recommend adoption of both a temporary
ordinance and an interim urgency ordinance as explained for Approach 2 above.
Approach 4: Prepare a TOD Alternative Plan
Under this approach, the default SB 79 standards would take effect on July 1, 2026,
while the City concurrently prepares a TOD Alternative Plan applicable to all TOD zones.
The TOD Alternative Plan could include targeted development standards, infrastructure
planning, and a structured community outreach process. Adoption of a TOD Alternative
Plan would render planning efforts such as the Downtown Housing Plan redundant and
may overlap to some degree with other work related to Housing Element Program 3.7:
Objective Design Standards for the SOFA area. The approach, however, provides greater
local control and public input, but would require several hundred thousand dollars for
consultant work and significant staff resources, both of which are currently
unaccounted for and resourced. The TOD Alternative Plan would be subject to HCD
review and approval. The other options do not preclude the Council from adopting a
TOD Alternative Plan in the future, however, selecting Approach 4 without combining it
with Approach 2 and/or 3 would allow for development under the state standards until
17 Cal Matters article, dated April 15, 2026: https://calmatters.org/housing/2026/04/sb-79-implementation/
Item 17
Item 17 Staff Report
Item 17: Staff Report Pg. 10 Packet Pg. 418 of 441
the TOD Alternative Plan is adopted, potentially creating inconsistencies in development
patterns.
Options for the Downtown Housing Plan:
As noted above, continuing with the Downtown Housing Plan with SB 79 Implementation
Approach 4 is not recommended, but remains an option for the other approaches.
The Council Ad Hoc recommends Option B to continue work on the Downtown Housing Plan.
Option A: Refocus the Downtown Housing Plan on Development Standards:
Redirect the Downtown Housing Plan effort toward developing objective standards for
the downtown area and exploring lot consolidation opportunities. This option would
produce updated development standards but not a completed area plan policy
document. It utilizes existing grant funding productively; supports future objective
standards for SOFA II; allows for nuanced solutions addressing small lot sizes and other
downtown constraints.
Option B: Resume and Complete the Downtown Housing Plan:
Resume the full Downtown Housing Plan effort, modeling the plan on SB 79 standards
while addressing other local considerations. This option results in a completed area plan
policy document.
Option C: Discontinue the Downtown Housing Plan:
Discontinue work on the Downtown Housing Plan, recognizing that SB 79 largely
establishes development potential for the area. This approach recaptures approximately
$378K to the General Fund. Not recommended in part due to concerns expressed about
San Antonio Area Plan and increased housing production in that area but also has
reputational considerations that may impact future funding opportunities.
Proposed Ordinances
Since the May 4, 2026, City Council discussion of this item was continued to a later date. Staff
has identified a potential timing issue associated with implementation of the proposed local
ordinances prior to SB 79’s July 1, 2026, effective date. Specifically, because ordinances are
generally subject to two readings and a 30-day referendum period, an ordinance introduced at
this hearing would not be effective until July 16, 2026, approximately two weeks after SB 79
goes into effect. To address this issue, staff recommends that the City Council adopt interim,
urgency ordinances, which go into effect immediately, on June 15, 2026, as well as the
temporary ordinances provided with this report.
Item 17
Item 17 Staff Report
Item 17: Staff Report Pg. 11 Packet Pg. 419 of 441
Historic Resource Exemption Ordinance
Add Section 18.14.070 to the PAMC establishing a TOD Combining District;
Apply the TOD Combining District to all sites within a TOD zone except sites excluded
from SB 79 as local historic resources;
Establish development standards for sites subject to the TOD Combining District that
permit development capacity equal to at least 50 percent of the default SB 79
standards;
Item 17
Item 17 Staff Report
Item 17: Staff Report Pg. 12 Packet Pg. 420 of 441
Temporarily exclude TOD eligible parcels subject to the TOD Combining District from
application of the Government Code Section 65912.157 through one year following
adoption of the City’s seventh cycle Housing Element; and,
Authorize corresponding zoning map updates identifying sites subject to the standards
of the TOD Combining District and sites excluded from SB 79.
The proposed development standards for the TOD combining district are as follows, unless the
underlying zoning is more permissive:
For sites within one-quarter mile of a TOD stop, a maximum floor area ratio of 1.75:1;
For sites located between one-quarter mile and one-half mile of a TOD stop, a maximum
floor area ratio of 1.5:1;
For sites adjacent to a TOD stop, a maximum floor area ratio equal to the greater of
2.25:1;
Minimum setbacks consisting of ten-foot front and rear setbacks and four-foot side
setbacks; and,
Daylight plane standards starting at a height of 16 feet at the property line and
extending at a 45-degree angle.
The TOD Combining District would generally retain underlying zoning district standards
except where modified by the interim TOD development standards.
Relationship Between Temporary/Urgency Ordinances and Future Permanent Zoning
Ordinances
Staff anticipates that the temporary and interim urgency ordinances and companion zoning
ordinances would operate together as a phased implementation framework. The temporary
and urgency ordinances would provide immediate interim protections and development
standards necessary as of July 1, 2026, while the permanent zoning ordinances could allow
more nuanced standards if warranted, and review by the Planning and Transportation
Commission.
This phased approach is intended to:
Avoid a regulatory gap between SB 79’s effective date and completion of local zoning
amendments;
Preserve local planning authority to the maximum extent permitted under State law;
Provide certainty to property owners, residents, and the development community;
Maintain consistency with the City’s ongoing Downtown Housing Plan work program;
and,
Allow additional time for evaluation of whether preparation of a TOD Alternative Plan
is warranted.
Item 17
Item 17 Staff Report
Item 17: Staff Report Pg. 13 Packet Pg. 421 of 441
NEXT STEPS
If the City Council proceeds with the phased implementation strategy, staff will:
Return for second reading of the temporary ordinances for historic sites and 50% SB 79
capacity on June 15, 2026, as well as interim urgency ordinances covering the same
subject matter;
Prepare permanent ordinances for review by the Planning and Transportation
Commission;
Continue work on the Downtown Housing Plan and coordinate future public
engagement and Planning and Transportation Commission review processes.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
Item 17
Item 17 Staff Report
Item 17: Staff Report Pg. 14 Packet Pg. 422 of 441
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
Item 17
Item 17 Staff Report
Item 17: Staff Report Pg. 15 Packet Pg. 423 of 441
Item 17
Attachment A - Caltrain
Stations and TOD Eligible
Areas.
Item 17: Staff Report Pg. 16 Packet Pg. 424 of 441
Item 17
Attachment A - Caltrain
Stations and TOD Eligible
Areas.
Item 17: Staff Report Pg. 17 Packet Pg. 425 of 441
Item 17
Attachment A - Caltrain
Stations and TOD Eligible
Areas.
Item 17: Staff Report Pg. 18 Packet Pg. 426 of 441
***NOT YET APPROVED***
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Ordinance No. _____
Interim, Urgency Ordinance of the Council of the City of Palo Alto Excluding from
the Effect of Government Code Section 65912.157 Those Properties Designated
as Local Historic Resources Pursuant to Palo Alto Municipal Code Chapter 16.49
and Amending the Zoning Map (Palo Alto Municipal Code Section 18.08.040)
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. On October 10, 2025, the Governor of the State of California signed Senate Bill 79 (SB 79),
which adopted California Government Code sections 65912.155 through 65912.162 and
requires local agencies, effective July 1, 2026, to permit high density residential
development in designated transit-oriented development (TOD) zones within one-half
mile of certain TOD stops.
B. There are three TOD zones in Palo Alto, centered on the Palo Alto, California Avenue, and
San Antonio Road Caltrain stations.
C. California Government Code section 65912.157 sets forth residential development
standards that apply to housing development projects within TOD zones, such as a height
of 75 feet, density of 120 dwelling units per acre, and floor area ratio of 3.5 for projects
within one-quarter mile of a Caltrain station.
D. Government Code section 65912.161, subdivision (b), permits local agencies to exclude
certain properties from compliance with Government Code section 65912.157 by
adopting an ordinance implementing SB 79, including:
a. A site that permits density and residential floor area ratio at no less than 50
percent of the standards specified under Government Code section 65912.157.
b. Sites with a historic resource designated as of January 1, 2025, on a local register.
E. The City Council desire to adopt an ordinance pursuant to Government Code section
65912.161, excluding sites designated as local historic resources on the Palo Alto Historic
Resources Inventory pursuant to Palo Alto Municipal Code (PAMC) Chapter 16.49.
F. SB 79 charges the California Department of Housing and Community Development (HCD)
with promulgating regulations relating to the bill by July 1, 2026. SB 79 further chargers
metropolitan planning organizations with creating maps of TOD stops and zones in
accordance with HCD guidance.
G. HCD issued a set of “advisory clarifications on definitions for Metropolitan Planning
Organizations” on March 23, 2026. The Metropolitan Transportation Commission (MTC),
Item 17
Attachment B - Draft
Ordinance Historic Resource
Exemption.
Item 17: Staff Report Pg. 19 Packet Pg. 427 of 441
***NOT YET APPROVED***
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the metropolitan planning organization for the San Francisco Bay Area, released preliminary draft
maps on April 8, 2026.
Pursuant to Government Code section 65912.161, subdivision (b)(1), sites
designated as local historic resources on the Palo Alto Historic Resources Inventory as of January
1, 2025 are hereby temporarily excluded from the application of Government Code section
65912.157. These sites shall be excluded until one year following the adoption of the City’s
seventh cycle Housing Element.
The Director of Planning and Development Services is hereby authorized
and directed to update Section 18.08.040 (the Zoning Map) of Title 18 (Zoning) of the Palo Alto
Municipal Code to indicate which sites within the TOD zones are and are not covered by
Government Code section 65912.157, including sites excluded pursuant to this Ordinance.
Commented [AY1]: Only for urgency.
Item 17
Attachment B - Draft
Ordinance Historic Resource
Exemption.
Item 17: Staff Report Pg. 20 Packet Pg. 428 of 441
***NOT YET APPROVED***
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SECTION 5. The Council finds that the Ordinance is not a project under the California
Environmental Quality Act (CEQA) pursuant to Government Code section 65912.160,
subdivision (c)(2), because it makes the City’s zoning code consistent with the provisions of SB
79 by implementing Government Code section 65912.161, subdivision (b) and amending the
zoning map to indicate which sites are and are not subject to Government Code section
65912.157.
SECTION 6. This Ordinance shall be effective upon adoption by a four-fifths vote
of the City Council and shall expire 45 days thereafter.
OR
This Ordinance shall be effective on the thirty-first date after the date of its adoption.
INTRODUCED and PASSED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Director of Planning and
Development Services
Item 17
Attachment B - Draft
Ordinance Historic Resource
Exemption.
Item 17: Staff Report Pg. 21 Packet Pg. 429 of 441
***NOT YET APPROVED***
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Item 17
Attachment B - Draft
Ordinance Historic Resource
Exemption.
Item 17: Staff Report Pg. 22 Packet Pg. 430 of 441
***NOT YET APPROVED***
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EXHIBIT A – ZONING MAP
Item 17
Attachment B - Draft
Ordinance Historic Resource
Exemption.
Item 17: Staff Report Pg. 23 Packet Pg. 431 of 441
***NOT YET APPROVED***
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Ordinance No. _____
Interim, Urgency Ordinance of the Council of the City of Palo Alto Excluding from
the Effect of Government Code Section 65912.157 Those Properties Designated
as Local Historic Resources Pursuant to Palo Alto Municipal Code Chapter 16.49
and Amending the Zoning Map (Palo Alto Municipal Code Section 18.08.040)
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. On October 10, 2025, the Governor of the State of California signed Senate Bill 79 (SB 79),
which adopted California Government Code sections 65912.155 through 65912.162 and
requires local agencies, effective July 1, 2026, to permit high density residential
development in designated transit-oriented development (TOD) zones within one-half
mile of certain TOD stops.
B. There are three TOD zones in Palo Alto, centered on the Palo Alto, California Avenue, and
San Antonio Road Caltrain stations.
C. California Government Code section 65912.157 sets forth residential development
standards that apply to housing development projects within TOD zones, such as a height
of 75 feet, density of 120 dwelling units per acre, and floor area ratio of 3.5 for projects
within one-quarter mile of a Caltrain station.
D. Government Code section 65912.161, subdivision (b), permits local agencies to exclude
certain properties from compliance with Government Code section 65912.157 by
adopting an ordinance implementing SB 79, including:
a. A site that permits density and residential floor area ratio at no less than 50
percent of the standards specified under Government Code section 65912.157.
b. Sites with a historic resource designated as of January 1, 2025, on a local register.
E. The City Council desire to adopt an ordinance pursuant to Government Code section
65912.161, excluding sites designated as local historic resources on the Palo Alto Historic
Resources Inventory pursuant to Palo Alto Municipal Code (PAMC) Chapter 16.49.
F. SB 79 charges the California Department of Housing and Community Development (HCD)
with promulgating regulations relating to the bill by July 1, 2026. SB 79 further chargers
metropolitan planning organizations with creating maps of TOD stops and zones in
accordance with HCD guidance.
G. HCD issued a set of “advisory clarifications on definitions for Metropolitan Planning
Organizations” on March 23, 2026. The Metropolitan Transportation Commission (MTC),
Item 17
Attachment C - Draft
Ordinance 50 Percent SB 79
Development Standards.
Item 17: Staff Report Pg. 24 Packet Pg. 432 of 441
***NOT YET APPROVED***
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the metropolitan planning organization for the San Francisco Bay Area, released preliminary draft
maps on April 8, 2026.
Section 18.14.070 (Transit Oriented Development (TOD) Combining
District) of Chapter 18.14 (Housing Incentives) of Title 18 (Zoning) of the Palo Alto Municipal Code
is hereby added to read:
18.14.070 Transit Oriented Development (TOD) Combining District
Commented [AY1]: Only for urgency.
Item 17
Attachment C - Draft
Ordinance 50 Percent SB 79
Development Standards.
Item 17: Staff Report Pg. 25 Packet Pg. 433 of 441
***NOT YET APPROVED***
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(1) For sites within ¼ mile of a TOD stop, unless the underlying district is more
permissive:
Maximum Floor Area Ratio 1.75:1
Minimum setbacks (feet)
Front and rear 10
Side 4
Daylight Plane for lot lines
abutting a low density
residential district (RE, R1,
NV-R1, R2, NV-R2, RMD)
Initial height: 16 feet,
measured at the property line
Slope: 45 degrees
Maximum density None
(2) For sites further than ¼ mile but within ½ mile of a TOD stop, unless the
underlying district is more permissive:
Maximum Floor Area Ratio 1.5:1
Minimum setbacks (feet)
Front and rear 10
Side 4
Daylight Plane for lot lines
abutting a low density
residential district (RE, R1,
NV-R1, R2, NV-R2, RMD)
Initial height: 16 feet,
measured at the property line
Slope: 45 degrees
Maximum density None
(3) For sites adjacent to a TOD stop, Maximum Floor Area Ratio shall be the greater
of 2.25 or the FAR provided in the underlying zone.
SECTION 3. Pursuant to Government Code section 65912.161, subdivision (b)(1), sites
subject to the TOD Combining District are hereby temporarily excluded from the application of
Government Code section 65912.157. These sites shall be excluded until one year following the
adoption of the City’s seventh cycle Housing Element.
SECTION 4. The Director of Planning and Development Services is hereby authorized
and directed to update Section 18.08.040 (the Zoning Map) of Title 18 (Zoning) of the Palo Alto
Municipal Code to indicate which sites within the TOD zones are and are not covered by
Government Code section 65912.157, including sites excluded pursuant to this Ordinance.
SECTION 5. If any section, subsection, sentence, clause, or phrase of this Ordinance is
for any reason held to be invalid or unconstitutional by a decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this
Ordinance. The City Council hereby declares that it would have passed this Ordinance and each
and every section, subsection, sentence, clause, or phrase not declared invalid or
Item 17
Attachment C - Draft
Ordinance 50 Percent SB 79
Development Standards.
Item 17: Staff Report Pg. 26 Packet Pg. 434 of 441
***NOT YET APPROVED***
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unconstitutional without regard to whether any portion of the Ordinance would be
subsequently declared invalid or unconstitutional.
Item 17
Attachment C - Draft
Ordinance 50 Percent SB 79
Development Standards.
Item 17: Staff Report Pg. 27 Packet Pg. 435 of 441
***NOT YET APPROVED***
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Item 17
Attachment C - Draft
Ordinance 50 Percent SB 79
Development Standards.
Item 17: Staff Report Pg. 28 Packet Pg. 436 of 441
***NOT YET APPROVED***
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Attachment
Fee Category and Fee Title FY 2026 Recommended Fee Unit Note:
Building Permit Fees
Alternative Fee Arrangement If project is out of scope from a traditional building structure and/or
additional services are required, then an alternative fee
arrangement may be established by the Chief Building Official to
achieve cost recovery. This exception may apply in cases when
construction valuation (commercial), square footage (residential), or
stand-alone fees are not practicable for the project.
Construction and Demolition
Demolition Permit 1,195 per permit Price does not include C&D Fees
Noise Exception 211 each
Electrical Permits
Energy Storage System - Single-Family System 450 per permit
Energy Storage System - Multi-Family / Commercial System 1,000 per permit
Electrical Service - New or Replacement: 400 amp and Greater 958 each
Electrical Service - New or Replacement: Less than 400 amp 621 each
SolarAPP+PV and ESS 450 per permit Available as instant permit
SolarAPP+PV 450 per permit Available as instant permit
Electrical Permits - Electrical Vehicle Charging Stations
Single-Family (Level 1 and 2) 1,327 per station
Single-Family (Level 3) 1,527 per station
Multi-Family / Commercial (Level 1 and 2): 1-6 Stations 4,326 for 1-6 stations
Multi-Family / Commercial (Level 1 and 2): Each addl 6 stations 1,134 for each additional station
Multi-Family / Commercial (Level 3 and 4): 1-6 Stations 5,238 for 1-6 stations
Multi-Family / Commercial (Level 3 and 4): Each addl 6 stations 1,134 for each additional station
Electrical Permits - Photovoltaic Systems
Multi-Family / Commercial System (10kW or less) 1,000 per permit
Multi-Family / Commercial System (11kW-49kW) 1,000 per permit
Multi-Family Commercial System (50kW or greater) 1,000 per permit Plus an additional $7 per kw>51k but less than 250k, $5 per kw>250k.
Single-Family Systems (10kW or less) 450 per permit
Single-Family Systems (greater than 10kW) 450 per permit Plus an additional $15/kw > 15.
Single-Family Systems (Reinstallation) 450 per permit
Mechanical Permits
HVAC Systems (i.e., Air Conditioners, Heat Pumps, Air Handling
Unit): Multi-Family / Commercial (Groups of 5): Direct replacements
902 per permit
HVAC Systems (i.e., Air Conditioners, Heat Pumps, Air Handling
Unit): Multi-Family / Commercial (Groups of 5): New - with curb
1,539 per permit
HVAC Systems (i.e., Air Conditioners, Heat Pumps, Air Handling
Unit): Multi-Family / Commercial (Groups of 5): New - without curb
1,232 per permit
HVAC Systems (i.e., Air Conditioners, Heat Pumps, Air Handling
Unit): Single-Family
714 per permit
Plumbing Permits
Solar Hot Water System 450 per permit
Subdivision - Four or Less Parcels
Conditional Use Permit - Day Care Center 219 each
Item 17
Attachment C - Draft Ordinance 50
Percent SB 79 Development Standards.
Item 17: Staff Report Pg. 29 Packet Pg. 437 of 441
***NOT YET APPROVED***
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Item 17
Attachment C - Draft Ordinance 50
Percent SB 79 Development Standards.
Item 17: Staff Report Pg. 30 Packet Pg. 438 of 441
***NOT YET APPROVED***
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Item 17
Attachment C - Draft
Ordinance 50 Percent SB 79
Development Standards.
Item 17: Staff Report Pg. 31 Packet Pg. 439 of 441
City Council
Staff Report
Report Type: SPECIAL ORDERS OF THE DAY
Lead Department: City Clerk
Meeting Date: June 1, 2026
Report #:2605-6414
TITLE
Proclamation Honoring June 2026 as LGBTQIA+ Pride Month
ATTACHMENTS
Attachment A: Honoring June 2026 as LGBTQIA+ Pride Month
APPROVED BY:
Mahealani Ah Yun, City Clerk
Item 1
Item 1 Late Packet Report
Item 1: Staff Report Pg. 1 Packet Pg. 440 of 441
HONORING JUNE 2026 AS LGBTQIA+ PRIDE MONTH
WHEREAS, the first Pride Parade took place in New York City on June 28, 1970 on the one-year
anniversary of the Stonewall Uprising inspiring similar parades and events across the country during the
month of June; and
WHEREAS, in 1999, June was declared as Gay and Lesbian Pride Month by President Clinton,
formalizing a decades long tradition of honoring and celebrating the LGBTQ+ community; and
WHEREAS, the City Council of the City of Palo Alto recognizes and proclaims the month of June 2026
as Pride Month to affirm that people who identify as LGBTQ+ are welcome in Palo Alto to live, work and
play, and to commit to supporting visibility, dignity and equality for LGBTQ+ people in our diverse
community; and
WHEREAS, Palo Alto will observe Pride Month with its first Pride event on June 7, 2026 to honor the
history of the LGBTQ+ movement and to support the rights of LGBTQ+ citizens to experience equality and
freedom from discrimination; and
WHEREAS, the Intersex-Inclusive Progress Pride Flag builds on previous designs to maximize
intersectional representation and is currently the most accepted standard as a symbol of pride, inclusion, and
support for LGBTQ+ people; and
WHEREAS, all people are born equal in dignity, rights and worth, and the City of Palo Alto calls
upon the people of this community to embrace this principle and work to eliminate prejudice toward
LGBTQ+ people everywhere it exists; and
WHEREAS, LGBTQ+ individuals have had immeasurable impact on the cultural, civic and economic
successes of our great city; and celebrating Pride Month enhances awareness, support and advocacy for
both Palo Alto’s and the broader LGBTQ+ community, and is an opportunity to take action, engage in
dialogue, and strengthen alliances to build acceptance and advance equal rights.
NOW, THEREFORE I, Vicki Veenker, Mayor of the City of Palo Alto, on behalf of the entire City
Council, do hereby proclaim the month of June 2026 as Pride Month in support of the LGBTQ+ community.
BE IT FURTHER RESOLVED, that the Intersex-Inclusive Progress Pride Flag will be raised in the
Council Chambers on this day, June 1, 2026, and in King Plaza on June 7, 2026, to celebrate Palo Alto’s
LGBTQ+ community and to affirm Palo Alto’s commitment to ensuring that all LGBTQ+ persons feel safe
and welcome here, whether they live in, work in, or are visiting Palo Alto.
Presented: June 1, 2026
______________________________
Vicki Veenker
Mayor
Proclamation
Item 1
Attachment A - Honoring
June 2026 as LGBTQIA+
Pride Month
Item 1: Staff Report Pg. 2 Packet Pg. 441 of 441