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Home My WebLink AboutORD 57031 0160153_kb2_20240829_ay 1 1 9 5 2 Ordinance No. 5703 Temporary Ordinance of the Council of the City of Palo Alto Adding Section 18.14.070 to the Palo Alto Municipal Code to Create the Transit Oriented Development (TOD) Combining District and Excluding from the Effect of Government Code Section 65912.157 Those Properties that Permit Density and Floor Area Ratio at No Less Than 50% of the Standards in the Government Code 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. Docusign Envelope ID: C02D4E84-00E4-81EC-8118-BF2D35F6AB00 2 0160153_kb2_20240829_ay 1 1 9 5 2 G. HCD issued a set of “advisory clarifications on definitions for Metropolitan Planning Organizations” on March 23, 2026. The Metropolitan Transportation Commission (MTC), the metropolitan planning organization for the San Francisco Bay Area, released preliminary draft maps on April 8, 2026. H. Due to the short time between the issuance of guidance from HCD and MTC and the July 1, 2026 effective date of Government Code section 65912.157, there is insufficient time for the amendments to the zoning map proposed in this ordinance to be presented for review by the Planning and Transportation Commission. I. The City Council finds and declares that the implementation of Government Code section 65912.157 on July 1, 2026 will create significant incentive for redevelopment of properties in the TOD zones that the City has not already identified as being suitable locations for higher-density development, allow densities that would create unanticipated strain on public infrastructure and cause additional points of conflict between vehicles and bicycles or pedestrians in the affected areas. Existing infrastructure, including but not limited to water supply for fire suppression, stormwater management to reduce flooding, and wastewater mains will require significant increases in capacity to serve high density development in the TOD zones that may not be fully funded by proposed development under current standards. The rezoning and exclusion actions set forth in this ordinance would reduce these impacts for a temporary period, during which the City may plan for increased demands on infrastructure and transportation resources. Accordingly, pursuant to PAMC section 18.80.090, the City Council adopts this ordinance as a temporary measure to preserve the public health, safety, or welfare. SECTION 2. 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 (a) Purpose. (b) Applicability. The TOD Combining District shall apply to all sites within a TOD zone, except: (1) sites owned by the City of Palo Alto and (2) sites excluded by ordinance from the effect of Government Code section 65912.157 because they were designated as local historic resources on the Palo Alto Historic Resources Inventory as of January 1, 2025. It is the intention of the City Council that the TOD Combining District permit development in accordance with the development standards set forth herein. Therefore, to the extent standards contained elsewhere in this Title 18 necessarily preclude development of the densities and residential floor areas required for a site within the TOD Combining District to qualify under Government Code section 65912.161, subd. (b)(1)(A), such standards shall be applied to allow for development on that site of the densities and residential floor areas set forth in subdivision (c). Docusign Envelope ID: C02D4E84-00E4-81EC-8118-BF2D35F6AB00 3 0160153_kb2_20240829_ay 1 1 9 5 2 (c) Development Standards. Transit-oriented housing development projects may elect to utilize the following development standards in-lieu of the standards set forth in the underlying district. Except as provided herein, the standards in the underlying district shall apply: (1) For sites within ¼ mile of a TOD stop, unless the underlying district is more permissive: for lot lines abutting a low density residential district (RE, R1, NV-R1, R2, NV-R2, RMD) (2) For sites further than ¼ mile but within ½ mile of a TOD stop, unless the underlying district is more permissive: for lot lines abutting a low density residential district (RE, R1, NV-R1, R2, NV-R2, RMD) (3) For sites adjacent to a TOD stop, Maximum Residential 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 Docusign Envelope ID: C02D4E84-00E4-81EC-8118-BF2D35F6AB00 4 0160153_kb2_20240829_ay 1 1 9 5 2 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 unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 6. 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 as set forth in Government Code section 65912.161, subdivision (b), and by amending the zoning map to indicate which sites are and are not subject to Government Code section 65912.157. // // // // // // // // // // // // // Docusign Envelope ID: C02D4E84-00E4-81EC-8118-BF2D35F6AB00 5 0160153_kb2_20240829_ay 1 1 9 5 2 SECTION 7. This Ordinance shall be effective on the 31st day following its adoption and shall expire on July 1, 2027 unless extended or superseded. INTRODUCED: JUNE 1, 2026 PASSED: JUNE 15, 2026 AYES: BURT, LAUING, STONE, VEENKER NOES: LYTHCOTT-HAIMS ABSENT: LU, RECKDAHL ABSTENTIONS: ATTEST: ________________________________________________________ City Clerk APPROVED AS TO FORM: ____________________________ Assistant City Attorney Mayor APPROVED: ____________________________ City Manager ____________________________ Director of Planning and Development Services Docusign Envelope ID: C02D4E84-00E4-81EC-8118-BF2D35F6AB00 Certificate Of Completion Envelope Id: C02D4E84-00E4-81EC-8118-BF2D35F6AB00 Status: Completed Subject: ORD 5703 - Temporary Ordinance 50% Option Source Envelope: Document Pages: 5 Signatures: 5 Envelope Originator: Certificate Pages: 2 Initials: 0 Christine Prior AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Christine.Prior@PaloAlto.gov IP Address: 170.85.155.40 Record Tracking Status: Original 6/24/2026 8:36:21 AM Holder: Christine Prior Christine.Prior@PaloAlto.gov Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Signer Events Signature Timestamp Albert Yang Albert.Yang@paloalto.gov Assistant City Attorney City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 136.226.54.94 Sent: 6/24/2026 8:43:33 AM Viewed: 6/24/2026 10:11:42 AM Signed: 6/24/2026 10:52:30 AM Electronic Record and Signature Disclosure: Not Offered via Docusign Jonathan Lait Jonathan.Lait@paloalto.gov Director, Planning and Development Services City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 170.85.155.17 Sent: 6/24/2026 10:52:31 AM Viewed: 6/24/2026 11:03:11 AM Signed: 6/24/2026 11:03:19 AM Electronic Record and Signature Disclosure: Not Offered via Docusign Ed Shikada Ed.Shikada@paloalto.gov City Manager City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 170.85.54.89 Sent: 6/24/2026 11:03:20 AM Viewed: 6/24/2026 11:29:46 AM Signed: 6/24/2026 11:29:57 AM Electronic Record and Signature Disclosure: Not Offered via Docusign Veenker, Vicki Vicki.Veenker@paloalto.gov City of Palo Alto Security Level: Email, Account Authentication (None)Signature Adoption: Uploaded Signature Image Using IP Address: 73.92.102.134 Sent: 6/24/2026 11:29:58 AM Viewed: 7/9/2026 12:11:55 AM Signed: 7/9/2026 12:22:50 AM Electronic Record and Signature Disclosure: Not Offered via Docusign Signer Events Signature Timestamp Mahealani Ah Yun Mahealani.AhYun@paloalto.gov City Clerk Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 199.33.32.254 Sent: 7/9/2026 12:22:51 AM Viewed: 7/13/2026 5:53:56 PM Signed: 7/13/2026 5:54:08 PM Electronic Record and Signature Disclosure: Not Offered via Docusign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 6/24/2026 8:43:33 AM Certified Delivered Security Checked 7/13/2026 5:53:56 PM Signing Complete Security Checked 7/13/2026 5:54:08 PM Completed Security Checked 7/13/2026 5:54:08 PM Payment Events Status Timestamps