City Council - November 18, 2024

Residential impact fees move to distinct per-square-foot rates

The Palo Alto City Council unanimously adopted an interim ordinance converting residential development impact fees for parks, community services and libraries from per-unit charges to per-square-foot charges. The adopted structure sets distinct rates of $18.70 per square foot for single-family housing and $44.50 per square foot for multifamily housing.

Council discussion focused on whether the higher multifamily rate could disproportionately affect apartment and condominium projects. Julie Lythcott-Haims questioned that disparity and supported the motion after it was expanded to require further analysis. Patrick Burt cited nexus and proportionality concerns in supporting distinct rates as an interim approach, while Ed Lauing and Vicki Veenker also backed the temporary structure as the city pursues a fuller review.

The council directed staff to evaluate eliminating or reducing the three fees for qualifying affordable units, including projects with at least 20% of their units affordable at or below 80% of area median income. Staff will also analyze a proposed 50% fee reduction for units serving households from 81% to 100% of area median income and determine where any waiver should apply.

Additional work will examine public-art fees, bedroom-based and hybrid bedroom-and-square-foot fee structures, and charges for home additions and complete rebuilds based on incremental increases in size. Staff could return with fiscal, policy and potential legal analysis of affordable-housing fee relief in the first half of 2025, with broader fee and likely nexus-study work continuing during the year.

Council relaxes retail rules and orders a broader review

The council also unanimously adopted urgency and interim retail-revitalization ordinances that relax selected commercial-use rules. The amended package authorizes automobile showrooms in the GF and R combining districts, including applicable areas on University Avenue and California Avenue, and clarifies that permitted financial institutions must offer public-facing, retail-based walk-in services.

The ordinances modify formula-retail and retail-like-use provisions and apply a more flexible hardship standard. They leave in place California Avenue's 1,800-square-foot threshold for fitness studios before a conditional use permit is required.

At Lydia Kou's request, staff will refine the pedestrian-activity standard before the interim ordinance's second reading so it reflects the council's intent without being unduly subjective or impractical. The council also directed staff and the Planning and Transportation Commission to review the retail-preservation ordinance's geographic boundaries and permitted uses. Three public speakers supported greater retail flexibility and called for broader, simpler and faster zoning changes.

Camera issues affected four of nine reviewed firearm-pointing incidents

Palo Alto's Independent Police Auditor identified body-worn-camera activation or equipment problems in four of nine incidents in which officers pointed firearms during the first half of 2024. The auditor found the firearm use justified and consistent with policy and training in all nine incidents, and reported that footage from other officers preserved the information needed for review. It found no evidence that officers intentionally avoided accountability.

The auditor also reviewed two incidents that met its use-of-force criteria, including one involving less-lethal munitions, and did not disagree with the Police Department's policy determination. No Tasers were deployed during the reporting period. Council members nevertheless pressed for continued attention to camera reliability, less-lethal-force training and post-incident evaluation.

The Police Department expected to receive replacement cameras in January 2025, and the auditor planned to monitor whether the equipment resolves activation and battery problems. Council members also sought clearer RIPA dashboard information and analysis of possible racial disparities. Staff anticipated an outside report on the data and potential dashboard improvements in early 2025, with 2024 data expected to be uploaded around April. The study session ended without council action.

Library products contract wins approval over data objection

The council approved a three-year contract with Califa Group for discounted library products on a 6-1 consent-calendar vote, with Greg Tanaka opposed. Contract C25192518 has a not-to-exceed total of $330,000, and the record says an additional $30,000 annual appropriation is anticipated in each of the second and third years.

Tanaka said the staff report described increased use but did not include totals for the prior year or previous contract period. He said the missing information prevented a per-use comparison with other services and an assessment of whether the contract represented good value.

Council adopts higher Utilities Director salary range

The council adopted revised salary schedules that raise the Utilities Director classification by 5%, increasing its annual maximum from $377,104 to $395,970. The action also adds the Animal Care Specialist classification with an annual maximum of $84,552.

Greg Tanaka said he opposed the salary item while supporting an increase in principle. He argued that part of the Utilities Director's compensation should vary based on measurable outcomes such as utility reliability and cost control. The item was approved as part of the consent calendar, but the record does not support a reliable item-specific vote tally.

Primary sources

Watch the meeting on YouTube · Read the official meeting packet