HomeMy WebLinkAbout2008-04-14 City Council Agenda Packet
1 04/14/08
Agenda posted according to PAMC Section 2.04.070. A binder containing supporting materials is available in the Council
Chambers on the Friday preceding the meeting.
Special Meeting
April 14, 2008
ROLL CALL
COUNCIL CONFERENCE ROOM - 6:00 PM
STUDY SESSION
1. Joint Meeting with the Library Advisory Commission Regarding Library
Matters
POTENTIAL LIST OF TOPICS
COUNCIL CHAMBERS - 7:00 PM
SPECIAL ORDERS OF THE DAY
2. Proclamation for the Volunteer Center of Silicon Valley
PROCLAMATION
ORAL COMMUNICATIONS
Members of the public may speak to any item not on the agenda; three minutes per speaker. Council reserves the
right to limit the duration or Oral Communications.
APPROVAL OF MINUTES
CONSENT CALENDAR
Items will be voted on in one motion unless removed from the calendar by two Council Members.
3. Adoption of a Resolution Expressing Appreciation for Marilyn Gillespie
Upon Her Retirement
RESOLUTION
4. Approval of an Enterprise Fund Contract with Water Works Engineers
in an Amount Not to Exceed $130,870 for Design and Services During
04/14/08 2
Construction of the Recycled Water Contact Chamber Retrofit at the
Regional Water Quality Control Plant, Capital Improvement Program
Project WQ-80021
CMR:198:08 ATTACHMENTS
5. Preliminary Approval of the Report of the Advisory Board for Fiscal
Year 2008-09 in Connection with the Palo Alto Downtown Business
Improvement District and Adoption of a Resolution Declaring Intent to
Levy an Assessment Against Businesses within the Downtown Palo Alto
Business Improvement District for 2008-09 and Setting a Time and
Place for a Public Hearing for May 12, 2008 at 7:00 PM or Thereafter
CMR:190:08 ATTACHMENTS
6. Approval of a Contract with Rodan Builders, Inc., in the Amount of
$211,900 for the Renovation of the Open Space Maintenance Building at
Foothills Park, Capital Improvement Program Project OS-07003; and
Approval of a Budget Amendment Ordinance for the Fiscal Year
2007-08 to Provide an Additional Appropriation of $40,137 to
Capital Improvement Program (CIP) Project OS-07003, Open
Space Maintenance Shop Rehabilitation
CMR:189:09 ATTACHMENTS
7. Approval of an Access Agreement with Acterra to Permit the Use of
Real Property in Order to Implement a Habitat Restoration Project at
the Enid Pearson Arastradero Preserve
CMR:183:08 ATTACHMENTS
8. Preservation of the Below Market Rate Unit (BMR) at 502 Thain Way:
1) Approval of the City’s Acquisition of the Unit for the Purpose of
Renovation and Resale to a Qualified BMR Buyer; and 2) Approval of
the Method for Setting the Resale Price
CMR:206:08 ATTACHMENTS
9. Adoption of a Resolution Opposing Proposition 98
MEMO
AGENDA CHANGES, ADDITIONS, AND DELETIONS
HEARINGS REQUIRED BY LAW: Applications and/or appellants may have up to ten minutes at the outset of the
public discussion to make their remarks and put up to three minutes for concluding remarks after other members
of the public have spoken.
OTHER AGENDA ITEMS: Public comments or testimony on agenda items other than Oral Communications shall be
limited to a maximum of five minutes per speaker unless additional time is granted by the presiding officer. The
presiding officer may reduce the allowed time to less than five minutes if necessary to accommodate a larger number of speakers.
UNFINISHED BUSINESS
04/14/08 3
ORDINANCES AND RESOLUTIONS
REPORTS OF COMMITTEES AND COMMISSIONS
10. Finance Committee Recommendation Regarding the Update on General
Fund Infrastructure Backlog
11. Finance Committee Recommendation to Issue Request for Proposals
for Destination Palo Alto
CMR:176:08 ATTACHMENTS
12. Policy and Services Committee Recommendation Regarding Approval
of Proposed Revisions to City Facility Naming Policy
CMR:197:08 ATTACHMENTS
PUBLIC HEARINGS
13. TEFRA Hearing Regarding Conduit Financing for the Gideon Hausner
Jewish Day School Facilities Located at 450, 470, 490 and 560 San
Antonio Road, Palo Alto, and Adoption of a Resolution Approving,
Authorizing and Directing Execution of a Joint Exercise of Powers
Agreement Relating to the California Municipal Finance Authority, and
Approving the Issuance of Revenue Bonds by the California Municipal
Finance Authority for the Purpose of Financing or Refinancing the
Acquisition, Construction and Improvement of Certain Facilities for the
Benefit of Gideon Hausner Jewish Day School
CMR:184:08 ATTACHMENTS
REPORTS OF OFFICIALS
COUNCIL MATTERS
COUNCIL COMMENTS, ANNOUNCEMENTS, AND REPORTS FROM CONFERENCES
Members of the public may not speak to the item(s).
CLOSED SESSION
This item may occur during the recess or after the Regular Meeting.
Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker.
ADJOURNMENT
Persons with disabilities who require auxiliary aids or services in using City facilities, services, or programs or who
would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact 650-329-2550 (Voice) 24 hours in advance.
CITY OF PAL0 ALTO
MEMORANDUM
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: LIBRARY
DATE: APRIL 14,2008
SUBJECT: POTENTIAL TOPICS OF DISCUSSION FOR THE JOINT STUDY
SESSION WITH CITY COUNCIL AND THE LIBRARY
ADVISORY COMMISSION
Below are the potential topics of discussion for the joint study session with the Library
Advisory Commission scheduled for April 14,2008 at 6:00 PM.
1. Introductions
2. Review of LAC Last Year's Accomplishments
3. LAC Priorities for Upcoming Year
Library Director
:-&:E.& .%-en
EMILY HARRISON
Assistant City Manager
CMR: 190:08 Page 1 of 3
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
DATE: APRIL 14, 2008 CMR: 190:08
SUBJECT: PRELIMINARY APPROVAL OF THE REPORT OF THE ADVISORY
BOARD FOR FISCAL YEAR 2008-09 IN CONNECTION WITH THE
PALO ALTO DOWNTOWN BUSINESS IMPROVEMENT DISTRICT
AND ADOPTION OF RESOLUTION OF INTENTION TO LEVY AN
ASSESSMENT AGAINST BUSINESSES WITHIN THE DOWNTOWN
PALO ALTO BUSINESS IMPROVEMENT DISTRICT FOR 2008-09 AND
SETTING A TIME AND PLACE FOR A PUBLIC HEARING ON MAY
12, 2008 AT 7:00 PM OR THEREAFTER, IN THE CITY COUNCIL
CHAMBERS
RECOMMENDATION
Staff recommends that the City Council:
(a) Preliminarily approve the BID Advisory Board’s 2008-09 Budget Report for the Business
Improvement District (BID); and
(b) Adopt a Resolution of Intention to Levy Assessments in the Palo Alto Downtown Business
Improvement District for fiscal year 2008-09, setting a date and time for the public hearing on
the levy of the proposed assessments for May 12, 2008 at 7:00 p.m. or thereafter, in the City
Council Chambers (Attachment 3).
BACKGROUND
The Palo Alto Downtown Business Improvement District (BID) was established by the City
Council in 2004 pursuant to the California Parking and Business Improvement Area Law to
promote the economic revitalization and physical maintenance of the Palo Alto Downtown
business district. The Council appointed the Board of Directors of the Palo Alto Downtown
Business and Professional Association, a non-profit corporation, as the Advisory Board for the
BID. The Board’s purpose is to advise the Council on the method and basis for levy of
assessments in the BID and the expenditure of revenues derived from the assessments.
CMR: 190:08 Page 2 of 3
Pursuant to BID law, the Advisory Board must annually submit to the Council a report that
proposes a budget for the upcoming fiscal year for the BID. The report must: 1) propose any
boundary changes in the BID; 2) list the improvements and activities to be provided in the fiscal
year; 3) estimate the cost to provide the improvements and activities; 4) set forth the method and
basis for levy of assessments; 5) identify surplus or deficit revenues carried over from the prior
fiscal year; and 6) identify amounts of contributions from sources other than assessments.
The Council must then: 1) review the report and preliminarily approve it as proposed or as
changed by the Council; 2) adopt a resolution of intention to levy the assessments for the
upcoming fiscal year; and 3) set a date and time for the public hearing on the levy of assessments
in the BID. Absent a majority protest at the public hearing on May 12, 2008, at the conclusion of
the public hearing, the Council may adopt a resolution confirming the report for Fiscal Year
2008-09 as filed or as modified by the Council. The adoption of the resolution constitutes the
levying of the BID assessments for fiscal year 2008-09.
DISCUSSION
The Advisory Board has prepared a report (Attachment 1) for the Council’s consideration which
includes the proposed budget for the Palo Alto Downtown BID for fiscal year 2008-09. As
required by BID law, the report has been filed with the City Clerk and contains a list of the
improvements, activities, and associated costs proposed in the BID for fiscal year 2008-09. The
Advisory Board has recommended no change in the BID boundaries or the method and basis for
levying assessments. Many of the activities and improvements are an extension of those initiated
last year.
A map of the BID is attached (Attachment 2). The proposed assessments in the BID for fiscal
year 2008-09 are the same as the assessments in fiscal year 2007-08. No increases are proposed.
The budget report for fiscal year 2008-09 was reviewed and approved by the Palo Alto
Downtown Business and Professional Association at its board meeting on March 19, 2008
(Attachment 1).
RESOURCE IMPACT
Adoption of the proposed BID budget does not directly impact City revenue. BID assessments
are restricted for use exclusively by the BID. It is anticipated that a healthy BID will encourage
growth of the retail community and consequently result in additional sales tax revenue for the
City. Some staff effort is expended annually to administer the collection of the BID.
Staff will continue to monitor staff administrative time devoted to the collection of BID
assessments. If costs significantly exceed the estimated $16,000 estimate of administering
assessments, staff will consider an administrative charge to the Palo Alto Downtown Business
and Professional Association who administer the BID, as allowed for under the contract, to offset
these costs.
CMR: 190:08 Page 3 of 3
The Attorney’s Office will continue to provide legal oversight to the BID during the annual
reauthorization process. Administrative Services staff provides assistance in the collection of
BID assessments. The Economic Development Manager will continue to provide oversight to
the BID and will prepare the annual reauthorization.
ENVIRONMENTAL REVIEW
This action by the City Council does not meet the definition of a project under Section 21065 of
the California Environmental Quality Act, and therefore no environmental assessment is
necessary.
ATTACHMENTS
Attachment 1: Report of the Advisory Board with Regard to the Reauthorization of the
Downtown Palo Alto Business Improvement District for Fiscal Year
2008-09.
Attachment 2: Downtown Palo Alto Business Improvement District Map
Attachment 3: Resolution of the City Council of the City of Palo Alto Declaring its
Intention to Levy an Assessment Against Businesses Within the
Downtown Palo Alto Business Improvement District for Fiscal year
2008-09 and Setting a Time and Place for hearing Objections
Thereto
PREPARED BY: ________________________________________________
SUSAN L. BARNES
Economic Development Manager
DEPARTMENT HEAD: ________________________________________________
STEVE EMSLIE
Director Planning and Community Environment
CITY MANAGER APPROVAL: ________________________________________
EMILY HARRISON
Assistant City Manager
CITY OF PAL0 ALTO CONTRACT NO. C08125653
AGREEMENT BETWEEN THE CITY OF PAL0 ALTO AND
WATER WORKS ENGINEERS, LLC
FOR PROFESSIONAL SERVICES
"RECYCLED WATER CONTACT CHAMBER RETROFIT"
This AGREEMENT is entered into , by and between the CITY OF
Pa0 ALTO, a charter city and a municipal corporation of the State of California ("CITY"), and
WATER WORKS ENGINEERS, LLC a limited liability corporation with offices located at 3530
Grand Avenue, Suite 3, Oakland, CA 94610; Telephone: (5 10) 53 1-461 5 ("CONSULTANT").
RECITALS
The following recitals are a substantive portion of this Agreement.
A. CITY intends to construct a Recycled Water Contact Chamber Retcofit project ("Project")
and desires to engage a consultant to provide design as well as services during construction in
connection with the Project ("Services"). k
B. CONSULTANT has represented that it has the necessary professional expertise,
qualifications, and capability, and all required licenses andlor 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", attached to and made a part of this Agreement.
NOW, THEREFORE, in consideration of the recitals, covenants, terms, and
conditions, this Agreement, the parties agree:
AGREEMENT
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 fiom the date of its full execution
through completion of the services in accordance with the Schedule of Performance attached as
Exhibit "B", unless terminated earlier pursuant to Section 19 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", attached to and made apart
of this Agreement. 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.
Professional Services
Revised 10/18/07
CMR: 190:08 Page 1 of 3
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
DATE: APRIL 14, 2008 CMR: 190:08
SUBJECT: PRELIMINARY APPROVAL OF THE REPORT OF THE ADVISORY
BOARD FOR FISCAL YEAR 2008-09 IN CONNECTION WITH THE
PALO ALTO DOWNTOWN BUSINESS IMPROVEMENT DISTRICT
AND ADOPTION OF RESOLUTION OF INTENTION TO LEVY AN
ASSESSMENT AGAINST BUSINESSES WITHIN THE DOWNTOWN
PALO ALTO BUSINESS IMPROVEMENT DISTRICT FOR 2008-09 AND
SETTING A TIME AND PLACE FOR A PUBLIC HEARING ON MAY
12, 2008 AT 7:00 PM OR THEREAFTER, IN THE CITY COUNCIL
CHAMBERS
RECOMMENDATION
Staff recommends that the City Council:
(a) Preliminarily approve the BID Advisory Board’s 2008-09 Budget Report for the Business
Improvement District (BID); and
(b) Adopt a Resolution of Intention to Levy Assessments in the Palo Alto Downtown Business
Improvement District for fiscal year 2008-09, setting a date and time for the public hearing on
the levy of the proposed assessments for May 12, 2008 at 7:00 p.m. or thereafter, in the City
Council Chambers (Attachment 3).
BACKGROUND
The Palo Alto Downtown Business Improvement District (BID) was established by the City
Council in 2004 pursuant to the California Parking and Business Improvement Area Law to
promote the economic revitalization and physical maintenance of the Palo Alto Downtown
business district. The Council appointed the Board of Directors of the Palo Alto Downtown
Business and Professional Association, a non-profit corporation, as the Advisory Board for the
BID. The Board’s purpose is to advise the Council on the method and basis for levy of
assessments in the BID and the expenditure of revenues derived from the assessments.
CMR: 190:08 Page 2 of 3
Pursuant to BID law, the Advisory Board must annually submit to the Council a report that
proposes a budget for the upcoming fiscal year for the BID. The report must: 1) propose any
boundary changes in the BID; 2) list the improvements and activities to be provided in the fiscal
year; 3) estimate the cost to provide the improvements and activities; 4) set forth the method and
basis for levy of assessments; 5) identify surplus or deficit revenues carried over from the prior
fiscal year; and 6) identify amounts of contributions from sources other than assessments.
The Council must then: 1) review the report and preliminarily approve it as proposed or as
changed by the Council; 2) adopt a resolution of intention to levy the assessments for the
upcoming fiscal year; and 3) set a date and time for the public hearing on the levy of assessments
in the BID. Absent a majority protest at the public hearing on May 12, 2008, at the conclusion of
the public hearing, the Council may adopt a resolution confirming the report for Fiscal Year
2008-09 as filed or as modified by the Council. The adoption of the resolution constitutes the
levying of the BID assessments for fiscal year 2008-09.
DISCUSSION
The Advisory Board has prepared a report (Attachment 1) for the Council’s consideration which
includes the proposed budget for the Palo Alto Downtown BID for fiscal year 2008-09. As
required by BID law, the report has been filed with the City Clerk and contains a list of the
improvements, activities, and associated costs proposed in the BID for fiscal year 2008-09. The
Advisory Board has recommended no change in the BID boundaries or the method and basis for
levying assessments. Many of the activities and improvements are an extension of those initiated
last year.
A map of the BID is attached (Attachment 2). The proposed assessments in the BID for fiscal
year 2008-09 are the same as the assessments in fiscal year 2007-08. No increases are proposed.
The budget report for fiscal year 2008-09 was reviewed and approved by the Palo Alto
Downtown Business and Professional Association at its board meeting on March 19, 2008
(Attachment 1).
RESOURCE IMPACT
Adoption of the proposed BID budget does not directly impact City revenue. BID assessments
are restricted for use exclusively by the BID. It is anticipated that a healthy BID will encourage
growth of the retail community and consequently result in additional sales tax revenue for the
City. Some staff effort is expended annually to administer the collection of the BID.
Staff will continue to monitor staff administrative time devoted to the collection of BID
assessments. If costs significantly exceed the estimated $16,000 estimate of administering
assessments, staff will consider an administrative charge to the Palo Alto Downtown Business
and Professional Association who administer the BID, as allowed for under the contract, to offset
these costs.
CMR: 190:08 Page 3 of 3
The Attorney’s Office will continue to provide legal oversight to the BID during the annual
reauthorization process. Administrative Services staff provides assistance in the collection of
BID assessments. The Economic Development Manager will continue to provide oversight to
the BID and will prepare the annual reauthorization.
ENVIRONMENTAL REVIEW
This action by the City Council does not meet the definition of a project under Section 21065 of
the California Environmental Quality Act, and therefore no environmental assessment is
necessary.
ATTACHMENTS
Attachment 1: Report of the Advisory Board with Regard to the Reauthorization of the
Downtown Palo Alto Business Improvement District for Fiscal Year
2008-09.
Attachment 2: Downtown Palo Alto Business Improvement District Map
Attachment 3: Resolution of the City Council of the City of Palo Alto Declaring its
Intention to Levy an Assessment Against Businesses Within the
Downtown Palo Alto Business Improvement District for Fiscal year
2008-09 and Setting a Time and Place for hearing Objections
Thereto
PREPARED BY: ________________________________________________
SUSAN L. BARNES
Economic Development Manager
DEPARTMENT HEAD: ________________________________________________
STEVE EMSLIE
Director Planning and Community Environment
CITY MANAGER APPROVAL: ________________________________________
EMILY HARRISON
Assistant City Manager
_____________________________________________________________________________________________
CMR:189:08 Page 1 of 4
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: COMMUNITY SERVICES
DATE: APRIL 14, 2008 CMR:189:08
SUBJECT: APPROVAL OF A CONTRACT WITH RODAN BUILDERS, INC., IN THE
AMOUNT OF $211,900 FOR THE RENOVATION OF THE OPEN SPACE
MAINTENANCE BUILDING AT FOOTHILLS PARK, CAPITAL
IMPROVEMENT PROGRAM PROJECT OS-07003; AND APPROVAL OF A
BUDGET AMENDMENT ORDINANCE FOR THE FISCAL YEAR 2007-08
TO PROVIDE AN ADDITIONAL APPROPRIATION OF $40,137 TO
CAPITAL IMPROVEMENT PROGRAM (CIP) PROJECT OS-07003,
OPEN SPACE MAINTENANCE SHOP REHABILITATION
RECOMMENDATION
Staff recommends that Council:
1. Authorize the City Manager or his designee to execute the attached contract (Attachment A)
in the amount of $211,900 with Rodan Builders, Inc. for the renovation and improvement of
the Open Space maintenance building at Foothills Park (Capital Improvement Program
Project OS-07003); and
2. Authorize the City Manager or his designee to negotiate and execute one or more change
orders to the contract with Rodan Builders, Inc., for related, additional but unforeseen work
that may develop during the project, the total value of which shall not exceed $21,000.
3. Approve the Budget Amendment Ordinance in the amount of $40,137 to increase
appropriation to CIP Project OS-07003 (Attachment E).
BACKGROUND
The Open Space maintenance building was constructed in 1968 and includes a large workshop,
tool room, and supply storage area. Staff uses the area to construct signs and displays; to repair
equipment and park furnishings; and to store work tools, equipment and small vehicles. The
wood-framed building has not been improved since its construction in 1968 or repaired after a
flood in 1983. It has an un-insulated plank board exterior that leaks extensively, causing damage
to stored materials and equipment.
The project will install new exterior siding to the building, add rain gutters on both edges of the
roof, add insulation and sheetrock to all of the interior shop walls, replace existing windows and
doors with insulated and energy efficient windows and doors and install a new dust collection
system and exhaust system that will provide cleaner air for employee health and safety.
_____________________________________________________________________________________________
CMR:189:08 Page 2 of 4
This project was submitted as part of the 2005-2007 Capital Budget and funding was approved
by Council for the 2006-2007 Fiscal Year. Staff has worked with the engineering firm of
Grossman Design Group, Inc., to design improvements that will be durable, efficient, cost-
effective and aesthetically compatible with the rustic buildings of Foothills Park.
DISCUSSION
In preparing the designs and specifications for this maintenance building, the design consultants
were asked to incorporate materials and construction techniques that are sensitive to the
environment, low in on-going maintenance, and that would esthetically blend with the
appearance of Foothills Park. The size and dimensions of the maintenance building will remain
unchanged (Attachment C – Site Map).
Once renovated, the maintenance building will allow staff store materials, supplies and tools in a
safe and secure manner and will ensure that materials and tools are not damaged by water. With
improved lighting, park staff will be better able to work on the repair of small engines and tools
and construct park amenities. With the improved dust removal system and added building
insulation, staff will be able to work in a safer, more comfortable, and efficient environment.
Bid Process
A notice inviting formal bids for this project was posted at City Hall on February 11, 2008, and
sent to 10 builders' exchanges and 7 independent contractors. The bidding period was 29 days.
Bids were received from four qualified contractors on March 11, 2008 as listed on the attached
bid summary (Attachment D). Bids ranged from a low bid of $211,900 to a high of $479,000.
The low bid is 2% percent above the 2006 engineer’s estimate of $207,500.
Summary of Bid Process
Bid Name/Number: Open Space Maintenance Building
IFB #122241
Proposed Length of Project: 120 calendar days
Number of Bids Mailed to Contractors: 7
Number of Bids Mailed to Builder’s Exchanges: 10
Total Days to Respond to Bid: 29
Pre-Bid Meeting? Yes, non-mandatory
Number of Company Attendees at Pre-Bid Meeting: 0
Number of Bids Received: 4
Bid Price Range: (including all alternates) Low bid $211,900 to a high of $479,000
Staff recommends that the bid $211,900 submitted by Rodan Builders, Inc. be accepted and that
Rodan Builders, Inc., be declared the lowest responsible bidder. The change order amount of
$21,000 (which equals 10% of the total contract) is requested to resolve unforeseen problems
and/or conflicts that may arise during the construction period.
Staff checked references supplied by the contractor for previous work performed and found no
significant complaints. Staff also checked with the Contractor's State License Board and found
_____________________________________________________________________________________________
CMR:189:08 Page 3 of 4
that the contractor has an active license on file. The Contractor’s Certification of Non-
discrimination is Attachment D.
Work is expected to start in May 2008 and be complete in 120 days from the Notice to Proceed.
Care has been taken to plan the actual renovation of this building to avoid any inconvenience to
the public or disruption to essential park operations. While the Open Space maintenance
building is under construction, staff will store materials and supplies in the adjoining garage
building.
RESOURCE IMPACT
Funds for this project are included in Capital Improvement Program Project – OS-07003 (Open
Space Maintenance Building) approved in FY 2006-07 for $250,000 (Attachment G).
Design, construction and contingency costs will total $290,137. A Budget Amendment in the
amount of $40,137 is needed to increase the appropriation to this project. This additional
appropriation will be funded by the Infrastructure Reserve.
Because the improved maintenance building will be more energy-efficient and will better protect
materials, supplies and tools, this project will create a slight decrease in the annual cost for
utilities and replacement tools.
POLICY IMPLICATIONS
This recommendation does not represent any change to existing City policies. The proposed
project is consistent with existing City policy, including Comprehensive Plan Policy C-26:
Maintain and enhance existing park facilities.
ENVIRONMENTAL REVIEW
This project has been determined to have no significant effect on the environment and to be
categorically exempt from review under the California Environmental Quality Act (CEQA) as
repair and maintenance of existing streets and similar facilities pursuant to CEQA Guidelines,
Section 15301 (c).
ATTACHMENTS
Attachment A: Contract
Attachment B: Site Map
Attachment C: Bid Summary
Attachment D: Certificate of Nondiscrimination
Attachment E: Budget Amendment Ordinance
Attachment F: CIP Page
_____________________________________________________________________________________________
CMR:189:08 Page 4 of 4
PREPARED BY: ______________________________________________________
GREG BETTS
Open Space and Parks Division Manager
DEPARTMENT HEAD:________________________________________________
RICHARD JAMES
Director of Community Services
CITY MANAGER APPROVAL:__________________________________________
EMILY HARRISON
Assistant City Manager
ATTACHMENT A
ClTY OF PAL0 ALO CONTRACT
CONTRACT No. C08122241
COMMUNITY SERVICES DEPARTMENT
RECREATION and OPEN SPACE &SCIENCES DIVISION
OPEN SPACE MAINTENANCE BUILDING RENOVATION
This Contract, number C08122241 dated April, 15, 2008 is entered into by and between the City of Palo Alto, a
California Charter City ("City"), and RODAN BUILDERS. INC. ("Contractor").
For and in consideration of the covenants, terms, and conditions ("the provisions") of this Contract, City and Contractor
("the parties") agree:
1. Term. This Contract shall commence and be binding on the parties on the Date of Execution of this Contract,
and shall expire on the date of recordation of the Notice of Substantial Completion, or, if no such notice is
required to be filed, on the date that final payment is made hereunder, subject to the earlier termination of this
Contract.
2. General Sco~e of Proiect and Work. Contractor shall furnish labor, services, materials and equipment in
connection with the construction of the Project and complete the Work in accordance with the covenants, terms
and conditions of this Contract to the satisfaction of City. The Project and Work is generally described as
follows:
Title of Project: OPEN SPACE MAINTENANCE BUILDING RENOVATION; ( INVITATION FOR BID (IFB)
NO. 122241)
Bid: $ 21 1,900.00-
3. Contract Documents. This Contract shall consist of the documents set forth below, which are on file with the
City Clerk and are hereby incorporated by reference. For the purposes of construing, interpreting and resolving
inconsistencies between and among the provisions of this Contract, these documents and the provisions
thereof are set forth in the following descending order of precedence.
a. This Contract.
b. Invitation for Bid.
c. Project Specifications.
d. Drawings.
e. Change Orders.
f. Bid.
9. Supplementary Conditions.
h. General Conditions.
1. Certificate of Insurance, Performance Surety Bond, Labor & Materials (Payment) Surety Bond
j. Other Specifications, or part thereof, not expressly incorporated in the Contract Specifications .
k. Any other document not expressly mentioned herein which is issued by City or entered into by the
parties.
4. Compensation. In consideration of Contractor's performance of its obligations hereunder, City shall pay to
Contractor the amount set forth in Contractor's Bid in accordance with the provisions of this Contract and upon
the receipt of written invoices and all necessary supporting documentation within the time set forth in the
Contract Specifications and the City of Palo Alto Dept. of Public Works Standard Drawings and Specifications
(most current version), or, if no time is stated, within thirty (30) Days of the date of receipt of Contractor's
invoices.
5. 1nsu;ance. On or before the Date of Execution, Contractor shall obtain and maintain the policies of insurance
coverage described in the lnvitation For Bid on terms and conditions and in amounts as may be required by the
Risk Manager. City shall not be obligated to take out insurance on Contractor's personal property or the
personal property of any person performing labor or services or supplying materials or equipment under the
Project. Contractor shall furnish City with the certificates of insurance and with original endorsements affecting
coverage required under this Contract on or before the Date of Execution. The certificates and endorsements
CITY OF PAL0 ALTO -Contract #C08122241 PAGE I OF 7
_________________________________________________________________________________________________
CMR:183:08 Page 1 of 3
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: COMMUNITY SERVICES
DATE: APRIL 14, 2008 CMR:183:08
SUBJECT: APPROVAL OF AN ACCESS AGREEMENT WITH ACTERRA TO
PERMIT THE USE OF REAL PROPERTY IN ORDER TO IMPLEMENT
A HABITAT RESTORATION PROJECT AT THE PEARSON
ARASTRADERO PRESERVE
RECOMMENDATION
Staff recommends that Council authorize the City Manager or his designee to enter into an
access agreement with Acterra to permit the use of real property within the Enid W. Pearson
Arastradero Preserve in order to implement a habitat restoration project with specified grant
funding provided by the California Coastal Conservancy to Acterra.
BACKGROUND
On April 28, 1997, Council approved a five-year contract with Bay Area Action to act as the
steward of the Arastradero Preserve and to implement action steps of the Council-approved
Arastradero Management Plan (CMR:199:97). The contract with Bay Area Action, now named
Acterra, was renewed for additional five-year contracts on July 22, 2002, (CMR:339:02) and on
October 1, 2007 (CMR:374.07). In conformance with its contract, Acterra is responsible for
developing an annual work plan that details the work tasks that are to be performed and
accomplished by Acterra staff and volunteers for the restoration of habitat within the Preserve.
On September 12, 2005, Council approved the purchase of 13-acres of land within the Pearson
Arastradero Preserve that was formerly owned by the Bressler family, and later by the Peninsula
Open Space Trust (CMR 368:05). In the process of acquiring the property, Council approved a
resolution to accept a $1,000,000 grant from the California Coastal Conservancy for the
purchase, and agreed to provide the Coastal Conservancy an Irrevocable Offer to Dedicate Fee
Title for a conservation easement on the property. This conservation easement provided
assurance to the Coastal Conservancy and other funding agencies that the land would be held by
the City in perpituity as public open space land for conservation and recreation purposes.
Since the land was acquired in 2005, staff and Acterra have worked together to prepare a plan to
restore the property to riparian habitat and to re-connect two segments of Arastradero Creek
(Attachment B – Site Plan). When the property was formerly owned by the Bressler family and
_________________________________________________________________________________________________
CMR:183:08 Page 2 of 3
operated as a horse stable, an 1,100-foot section of a tributary to Arastradero Creek was
channeled through an underground concrete culvert. In 2006, City staff was successful in
obtaining a Riparian & Riverine Habitat grant from the State of California to remove sections of
the concrete culvert, re-contour the meandering path of the historic stream, and remove excess
piles of dirt that had been placed on the property over many years.
Working with detailed habitat restoration plans designed by H. T. Harvey and Associates, staff
and volunteers have begun a ten-year process to re-create a stream corridor supporting willows
and other native riparian plants in order to provide viable habitat for California Red-legged
Frogs, California Tiger Salamanders and other wildlife.
DISCUSSION
In order for the City to be successful in re-establishing a riparian corridor through the length of
the 13-acre property, staff has worked with Acterra to create a ten-year implementation plan. The
plan calls for planting 5,000 native plants, controlling weeds along the corridor and monitoring
the successful vegetation of the restored area
Acterra has applied for, and has been approved for a four-year, $72,000 grant from the California
Coastal Conservancy to provide resources for the coordination of volunteers, control of invasive
weeds, monitoring of the restoration project site, and for the dissemination of information about
the restoration project. While the “completion date” of the project stipulated in the grant
agreement is December 31, 2011, which is within the term of the current five-year agreement
between the City and Acterra for stewardship services, the contractual “termination date” of the
grant agreement is December 31, 2031. The inclusion of a twenty-year maintenance period is
intended to provide the Coastal Conservancy assurance that the funded project is adequately
sustained by the grantee beyond just the implementation period.
The attached agreement (Attachment A) assures Acterra access to the project site by the City of
Palo Alto beyond the period of the current stewardship agreement for monitoring of the
restoration site. This land owner agreement will satisfy the Coastal Conservancy’s requirement
that the project site will be adequately sustained through 2031.
The Acterra Board of Directors has approved a resolution (Attachment C) pledging its
commitment to maintain, monitor and support the project site until the termination date of the
grant agreement in 2031.
RESOURCE IMPACT
Work covered by the grant application to restore City-owned park land is currently a contractual
responsibility for Acterra under the terms of the Stewardship Agreement. The City of Palo Alto
works closely and cooperatively with Acterra to manage the natural resources of the Pearson
Arastradero Preserve. Since the plantings in the restoration site are native plants, once
established, these stock will need minimal care or watering to be self-sustaining. Since the City
already has an obligation under the terms of the conservation easements (agreed to during the
purchase of the property) to maintain and preserve the project site, the City is not increasing its
responsibilities or expenses by entering into this access and use agreement with Acterra.
_________________________________________________________________________________________________
CMR:183:08 Page 3 of 3
The long-term success of viable riparian habitat will ultimately benefit native wildlife, and will
reduce City labor and maintenance costs in controlling weeds in this area of the Pearson
Arastradero Preserve.
POLICY IMPLICATIONS
This recommendation is consistent with existing City policy.
ENVIRONMENTAL REVIEW
The approval of this agreement is not considered an action subject to the California
Environmental Quality Act; therefore, no environmental assessment is needed at this time.
Environmental review was completed for the actual re-creation of the ephemeral stream and re-
vegetation plan.
ATTACHMENTS
Attachment A: Land Owner Agreement with Acterra
Attachment B: Restoration Site Map
Attachment C: Resolution No. 1-08 from the Acterra Board of Directors
PREPARED BY: ____________________________________________________
GREG BETTS
Open Space and Parks Division Manager
DEPARTMENT HEAD:______________________________________________
RICHARD JAMES
Director of Community Services
CITY MANAGER APPROVAL:_______________________________________
EMILY HARRISON
Assistant City Manager
AGREEMENT REGARDING ACCESS TO AND USE OF REAL PROPERTY IN
ORDER TO IMPLEMENT A HABITAT RESTORATION PROJECT
(Pearson-Arastradero Preserve)
This agreement is entered into by Acterra, a California nonprofit organization '("the nonprofit
organization") and the City of Palo Alto ("the owner").
PERTINENT PACTS
A. The owner owns certain real property ("the property"), located at the Pearson-Arastradero
Preserve in the City of Palo Alto, Santa Clara County, California, as shown in Exhibit A,
which is incorporated by reference and attached.
B. The nonprofit organization is a California nonprofit organization existing under Section
501(c)(3) of the United States Internal Revenue Code and whose purposes are consistent with
Division 21 of the California Public Resources Code.
C. The owner seeks the assistance of the nonprofit organization in restoring the natural
resources and enhancing habitat on the property, and the nonprofit organization seeks to
provide this assistance.
D. On December 13,2007, the State Coastal Conservancy ("the Conservancy"), an agency of
the State of California established under Division 21 of the Public Resources Code,
authorized a grant to the nonprofit organization, subsequently awarded under Grant
Agreement No. 07- 100 ("the grant agreement"), to undertake on the property a habitat
restoration project with school and volunteer groups.
E. The grant agreement requires that the nonprofit organization enter into an agreement
sufficient to protect the public interest in any restoration projects implemented under the
Conservancy's grant, and to ensure that the nonprofit organization has permission to
implement and monitor project$-on the owner's land.
THE PARTIES AGREE AS FOLLOWS, in light of the Pertinent Facts, above:
1. DURATION. This agreement shall take effect when fully executed, on the date last signed
below, and shall run until the later of 20 years from its effective date or completion of the
restoration described in this agreement, unless the agreement is terminated earlier by either
party in writing, with written consent of the Executive Officer of the Conservancy, which
shall not be unreasonably withheld.
CMR:206:08 Page 1 of 4
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
DATE: APRIL 14, 2008 CMR: 206:08
SUBJECT: PRESERVATION OF THE BELOW MARKET RATE UNIT AT 502 THAIN
WAY: 1) APPROVAL OF THE CITY’S ACQUISITION OF THE UNIT FOR
THE PURPOSE OF RENOVATION AND RESALE TO A QUALIFIED BMR
BUYER; AND 2) APPROVAL OF THE METHOD FOR SETTING THE
RESALE PRICE
RECOMMENDATION
Staff recommends that the City Council:
1. Authorize the acquisition by the City of the Below Market Rate (BMR) unit located at 502 Thain
Way (Barron Square) for the purpose of preservation, renovation and resale as a BMR unit to a
qualified BMR buyer identified by PAHC Housing Services, LLC (PAHC) with a first right to
repurchase by the current owner; and
2. Approve setting the resale price at the City’s total direct costs; and
3. Direct the City Manager or his designee to approve the final resale price, execute the certificate
of acceptance and all other documents and deeds necessary to complete the purchase, renovation
and the resale.
BACKGROUND
502 Thain Way is one of six, one-bedroom BMR units in the 65 unit Barron Square condominiums
located at Maybell Avenue and El Camino Real. The complex was built in 1979 and thus has some
of the oldest units in the BMR program. Barron Square is an attractive development with strong
sales values for the market rate units; the BMR units are located together in one building with two
similar market rate units at the rear of the complex. Unit 502 has not been occupied since late 2004.
Following a lengthy probate process, PAHC found little interest in the unit from the BMR waiting
list, primarily due to concerns about past problems with water intrusion and its poor interior
condition. A qualified applicant agreed to purchase the unit contingent upon his review of the mold
testing. The seller refused to accept any contingencies, claiming the right to sell the unit at market
price because the resale deadlines in the deed restrictions had been exceeded. On May 7, 2007,
Council authorized the purchase of the property by the City and the subsequent resale to the
purchaser, together with a deferred payment renovation loan of up to $45,000 and time for the
completion of the inspection report. (See Attachment A CMR: 227:07).
CMR:206:08 Page 2 of 4
DISCUSSION
The City acquired the unit for $108,900 on June 5, 2007 and then entered into the purchase contract
to resell the unit at the same price to the BMR purchaser. The purchaser contracted for a mold
report; after reviewing the report, the purchaser decided to go ahead with his purchase of the BMR
unit and escrow closed on September 5, 2007. Once he had ownership, the purchaser contracted for
further investigation of the unit.
Earlier this year, the purchaser and his contractor met with Barron Square Homeowners Association
(HOA) and PML Management Corporation (the company responsible for repairs and maintenance)
to discuss the findings and recommendations in the inspection reports. The purchaser made both
written and verbal requests to the HOA and PML to conduct the repairs necessary. The HOA
refused to accept any responsibility for the mold remediation. The purchaser has decided that he
cannot continue to pay the monthly mortgage, homeowner’s dues and taxes, which total about
$1,100 per month, without having a place to live. On February 25, the purchaser gave the City and
PAHC official notice of his intention to sell the property. As provided in the BMR deed restrictions,
the City must exercise its right to purchase at the BMR resale price by April 24 or else the owner can
claim the right to sell the unit without BMR price restrictions.
The staff recommendation is to repurchase and rehabilitate the unit and then resell it to a qualified
BMR buyer from the waiting list at a price that recoups the City’s direct costs. As the legal owner,
the City will be in a better position to negotiate a solution with the HOA regarding responsibility for
the mold remediation costs and the common area repairs. If necessary, litigation against the HOA
may be undertaken. In general, City practice has been to only take on ownership of BMR units as a
last resort if there is no other way to preserve them in the program due to the financial risks and
increased staff workload.
As the property owner, the City would need to pay the $545 monthly holding costs for property
taxes and HOA dues and be directly responsible for the completion of the interior renovations. The
City’s investment in the unit will total $121,700 as follows once the City takes title from the current
owner:
$109,500 BMR price (based on June 2007 purchase price plus one-third CPI)
8,725 Amounts already paid to purchaser as reimbursement for construction and
assessment costs
2,000 Estimated escrow, title costs for three purchase / sale transactions
1,475 HOA dues and taxes for the three months City already held the unit
$121,700 Total City expenditures by close of escrow
Future costs the City would incur include: 1) estimated $7,000 in holding costs for about one year;
and 2) interior renovation estimated at $40,000. This would bring the City’s total investment in the
unit up to $168,700.
Assuming the City can offer the renovated unit for resale for not over $170,000 (recouping all of the
City’s direct costs), that price would be affordable, with a five percent down payment, to a single
person with an income of $66,500, which equals 90 percent of the 2008 area median income. This
CMR:206:08 Page 3 of 4
price is lower than the one-bedroom 800 High BMR units which sold for $189,450 with good
demand from the waiting list. Due to the limited supply of new or completely renovated one-
bedroom BMR units, staff believes this unit will be attractive to the waiting list and sell quickly once
its problems are resolved and it has been completely renovated. The purchaser has requested that the
City provide him with an opportunity to repurchase the unit once it is renovated and ready for
occupancy. Staff supports his request and proposes that he be given a first right of refusal to
repurchase at the resale price the unit would be offered to the BMR waiting list (as described above)
for 30 days prior to the unit being advertized to the BMR waiting list.
If the City does not exercise its right to purchase by April 24 (within 60 days of the notice to sell),
then the deed restrictions allow the owner to sell the unit at market rate and retain the proceeds; this
would result in the loss of this unit from the BMR Program. Staff reviewed this course of action, but
is not recommending it because there would probably further delays in remedying the conditions
with the unit which could adversely affect the other five BMR units in the building. However, there
is clearly a difference between the current BMR restricted price and the value at market rate that
would provide an incentive for a potential buyer to purchase the unit, deal with its problems and then
use it as a home or resell it for profit. For example, there are two market rate one-bedroom units on
the second floor of the building which sold in the last three years for $486,000 and $510,000
respectively. While the upper floor units would have higher values, these prices give some
indication of the market value of 502 Thain Way if it was in good condition and ready to occupy.
RESOURCE IMPACT
The BMR Emergency Fund (BMR Fund) has a current available balance of $455,000. This Fund
will be used to pay all costs related to the preservation of the 502 Thain Way unit, including the
purchase price, renovation, holding and transaction costs estimated at $170,000. The proceeds from
the eventual resale will be deposited back into the BMR Fund to be immediately available for any
future needs related to the preservation of BMR ownership units.
POLICY IMPLICATIONS
The staff recommendation does not represent any change to existing City policy, which is to protect
and preserve the BMR ownership units in the City’s affordable housing stock.
TIMELINE
Should Council approve the staff recommendation, a purchase contract will be prepared and
executed with the City as the buyer without any contingencies other than City review and acceptance
of a preliminary title report with escrow to close as quickly as possible. Once the City has legal title
to the unit, the City Attorney will initiate negotiations with the HOA and PML regarding the
satisfactory completion of repairs and the remediation. If necessary, litigation against the HOA will
follow. Lastly, the unit will be offered for sale to the BMR waiting list.
ENVIRONMENTAL REVIEW
The provision of City funds to preserve a single-family ownership unit as affordable housing is
categorically exempt under Section 15326 of the California Environmental Quality Act (CEQA).
CMR:206:08 Page 4 of 4
ATTACHMENTS
A) City Manager’s Report dated May 7, 2007 (CMR:227:07)
PREPARED BY: ___________________________________
Catherine Siegel, Advance Planning Manager
DEPARTMENT HEAD REVIEW: ________________________________________
STEVE EMSLIE
Director of Planning and Community Environment
CITY MANAGER APPROVAL: ________________________________________
EMILY HARRISON
Assistant City Manager
CC: Bill Fellman, Real Estate Division, Administrative Services Department
Marcie Mitchell, BMR Administrator, PAHC Housing Services, LLC
Mr. Randy Lu, Owner of 502 Thain Way
Barron Square Homeowners Association (c/o Marla Degner, President)
PML Management Corporation (c/o Deborah McGraw)
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: CITY
MANAGER’S OFFICE
DATE: APRIL 14, 2008 CMR: 176:08
SUBJECT: FINANCE COMMITTEE RECOMMENDATION TO ISSUE REQUEST
FOR PROPOSALS FOR DESTINATION PALO ALTO
RECOMMENDATION
At its February 20, 2008 meeting, the Finance Committee voted unanimously to recommend that
the City Council:
1. Direct staff to issue an RFP for visitorship services through Destination Palo Alto to
enhance the Palo Alto economy
2. Authorize staff to describe and link the Destination Palo Alto website to the City of Palo
Alto website
3. Direct staff to include $240,000 per year for the Destination Palo Alto program in the
2008-09 and 2009-10 proposed budgets
4. Identify a single point of contact within the City for Destination Palo Alto efforts
COMMITTEE REVIEW AND RECOMMENDATIONS
On February 20, 2008, the Finance Committee reviewed information about the Destination Palo
Alto effort, initiated by City staff based on a Colleague’s Memo in March 2006. The Finance
Committee’s review included questions about a single point of contact for the Destination Palo
Alto program internally within the City. Additionally, the Finance Committee underscored the
importance of metrics to measure success of the program. The committee was concerned about
the heightened level of special events within the City and the need for internal staff to facilitate
this effort. The City Manager indicated that the Special Events Team, headed by the Police
Department, will be coordinating permits for events going forward. The committee emphasized
that it is important to keep the existing stakeholders of the Destination Palo Alto Committee
engaged and asked that staff explore the creation of an advisory committee or City- appointed
committee to guide Destination Palo Alto efforts going forward.
The Administrative Services Department described the formula for estimating the City’s return
on its investment for Destination Palo Alto. Based on a 5% increase in the transient occupancy
tax for the five largest hotels in Palo Alto, the growth in revenue will be approximately $240,000
per year. This amount is proposed each year for two years as a part of the 2008-09 and 2009-10
budgets.
The Finance Committee approved the recommendations from the City Manager with the
addition of recommendation #4 in this report.
PREPARED BY: __________________________________
Susan L. Barnes
Manager, Economic Development/ Redevelopment
DEPARTMENT HEAD REVIEW: __________________________________
STEVE EMSLIE
Director of Planning and Community Environment
CITY MANAGER APPROVAL: __________________________________
FRANK BENEST
City Manager
ATTACHMENTS
Attachment A: CMR 146:08 “Direct Staff to issue an RFP for Visitorship Services for
Destination Palo Alto
___________________________________________________________________________
CMR 197:08 Page 1 of 2
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPT.: CITY MANAGER’S OFFICE
DATE: APRIL 14, 2008 CMR: 197:08
SUBJECT: POLICY AND SERVICES COMMITTEE RECOMMENDATION
REGARDING APPROVAL OF PROPOSED REVISIONS TO CITY FACILITY
NAMING POLICY
RECOMMENDATION
The Policy and Services Committee recommends that the Council consider approval of
proposed modifications to the existing Policy and Procedure 1-15 on Naming City-Owned
Land and Facilities (Attachment A) to accommodate naming opportunities associated with
significant donations to capital campaigns that raise funds for the acquisition, construction or
renovation of City facilities.
COMMITTEE REVIEW
Based on Council direction in early February 2008, the Policy and Services Committee
considered modifications to the City’s existing facility naming policy at its February 12 and
March 18 meetings. At the first meeting, staff posed a series of policy questions (Attachment
B) to the Committee and then returned at the second meeting with proposed revisions to the
City’s policy based on the direction received. The Committee took the following key policy
actions at the two meetings:
1) Recommended approval of policies that allow for naming of an entire building in
recognition of individuals or families making financial contributions but to not allow
naming of an entire building in recognition of corporate or commercial donations.
2) Recommended that the City Council accept corporate donations to name individual
rooms within buildings or other sub-facilities.
3) Recommended streamlining the review and approval process for naming recognition
associated with capital fundraising campaigns as outlined on page 7 of the revised
draft policy (Attachment A).
4) Recommended acceptance of the proposed revisions to Policy and Procedures 1-
15/MGR as shown on Attachment A.
The staff reports and minutes from the February 12 and March 18 meetings are included as
Attachments C-F.
___________________________________________________________________________
CMR 197:08 Page 2 of 2
RESOURCE IMPACT
The proposed modifications to the City policy on Naming City-Owned Land and Facilities
could result in substantial contributions to the City on projects that involve capital campaigns
where significant donations are recognized through naming opportunities.
POLICY IMPLICATIONS
These policy modifications, once developed and approved by the City Council, will be
incorporated into the policy on Naming City-Owned Land and Facilities as procedures for
offering naming opportunities in exchange for and/or in recognition of significant
contributions to capital campaigns organized and operated by authorized support groups.
Any implications to the City’s Gift Policy will be clearly stated in the final report.
ENVIRONMENTAL REVIEW
This is not a project requiring environmental review under Section 21065 of the California
Environmental Quality Act.
ATTACHMENT A: Draft of revised policy (1-15) for Naming City-Owned Land and
Facilities
ATTACHMENT B: List of questions discussed at February 12 Policy & Services meeting
ATTACHMENT C: February 12, 2008 Policy & Services report and attachments
ATTACHMENT D: Draft minutes from February 12 Policy & Services meeting
ATTACHMENT E: March 18, 2008 Policy & Services report
ATTACHMENT F: Draft minutes from March 18 Policy & Services meeting
PREPARED BY: __________________________________
Kelly Morariu
Assistant to the City Manager
CITY MANAGER APPROVAL: __________________________________
EMILY HARRISON
ASSISTANT CITY MANAGER
POLICY AND PROCEDURES 1-15/MGR
Revised: April 2008 (Deleted: Aplil2004 1
NAMING CITY-OWNED LAND AND FACILITIES
POLICY STATEMENT
Attachment A The purpose of this policy is to ensure that City-owned land and facilities, when named for
individuals, are persons who have made significant contributions or performed services deemed
to have been of major importance to the community.
This policy establishes uniform procedures for the naming of City-owned land and facilities as
set forth by Council Resolution No. 6211, approved on December 12, 1983, and revised by
Council on April 12, 2004. The policy is applicable to new and existing City-owned land and
facilities.
The policy provides a mechanism for citizens to suggest names which they believe should be
considered for new City facilities or land acquisitions and for the renaming of existing facilities I and lands. The policy also establishes criteria which will guide the Historical Association ,and the [ beleted: 1
appropriate City Commission or Committee in recommending names to the Council for
approval.
Naming and renaming City-owned land and facilities shall be the responsibility of the City
Council. However, places within City-owned land or facilities, such as a room or patio within a
building or a trail or athletic field within a park, which do not require formal dedication by the
City Council, may be named by the City Manager or hisher designee, subject to final approval
by the City Council via the consent calendar.
This process does not apply to the naming of streets which will continue to be processed through
the Planning and Community Environment Department (Policy and Procedure 1-16: Naming of
City Streets). The naming of a street may be considered an appropriate alternative means of I honoring an individual.
The Citv Council has determined that significant individual. family or foundation contributions
to the constr~tction/renovation of City facilities can be recognized tl~rough the naming of said
facilities after these groups. This document outlines the procedure to be follo~\red when a fund-
raising group or board. with the approval of the City Council, embarks upon a capital campaign
for the purpose of securing private f~inds for the acouisition of land. rei~o~ation/expansio~~ of an
existing buildine, or the construction of a new faciliw, and wishes to offer nanlirw opportunities
in recoalition of signifi cant donations of money or land, The Citv Co~lncil has determined that [~eleted: 7 1
significant contributions from corporations or corporate foundations to capital campaigns will
not be accepted in exchange for the abilitv to name entire facilities in recognitiol'i of these
corporate entities. I-Iowever, the City Council has agreed to allow naming recognition of
corporate or commercial entities in facility interiors or on sub-facilities as described in this
policy.
I SECTION 1: PROCEDURE FOR NAMING NEW FACILITIES OR CITY-OWNED
LANDS
Page 1 of 8
CMR: 184:08 Page 1 of 4
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE: APRIL 14, 2008 CMR: 184:08
SUBJECT: TEFRA HEARING REGARDING CONDUIT FINANCING FOR THE
GIDEON HAUSNER JEWISH DAY SCHOOL FACILITIES LOCATED
AT 450, 470, 490 AND 560 SAN ANTONIO ROAD, PALO ALTO, AND
ADOPTION OF A RESOLUTION APPROVING, AUTHORIZING AND
DIRECTING EXECUTION OF A JOINT EXERCISE OF POWERS
AGREEMENT RELATING TO THE CALIFORNIA MUNICIPAL
FINANCE AUTHORITY, AND APPROVING THE ISSUANCE OF
REVENUE BONDS BY THE CALIFORNIA MUNICIPAL FINANCE
AUTHORITY FOR THE PURPOSE OF FINANCING OR REFINANCING
THE ACQUISITION, CONSTRUCTION AND IMPROVEMENT OF
CERTAIN FACILITIES FOR THE BENEFIT OF GIDEON HAUSNER
JEWISH DAY SCHOOL
RECOMMENDATION
1) Conduct a public hearing under the requirements of the Tax Equity and Fiscal
Responsibility Act of 1983 (TEFRA) and the Internal Revenue Code of 1986, as
amended (Code); and
2) Adopt a resolution (Attachment A) approving the issuance of the bonds by the
California Municipal Finance Authority (CMFA) for the benefit of Gideon Hausner
Jewish Day School (Borrower) in financing its project and authorizing the Mayor, City
Manager, or such other designated signatory to execute the Joint Exercise of Powers of
Agreement with the CMFA. (Attachment B)
BACKGROUND
The Gideon Hausner Jewish Day School (GHJDC) requested that the CMFA serve as the
municipal issuer of bonds in an aggregate principal amount not to exceed $25,000,000 of tax-
exempt revenue bonds. Proceeds from the issuance of the bonds will be used to finance or
refinance the acquisition, construction and improvement of certain facilities (450, 470, 490 and
560 San Antonio Road, Palo Alto) for the benefit of the GHJDC. The bonds will be part of a
finance plan which may occur over a period of multiple years.
In order for all or a portion of the bonds to qualify as tax-exempt bonds, the City of Palo Alto
must conduct a public hearing (TEFRA Hearing), providing the members of the community an
opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the
CMR: 184:08 Page 2 of 4
project. Prior to the hearing, reasonable notice must be provided to the members of the
community. Following the close of the TEFRA hearing, an “applicable elected representative”
of the governmental unit hosting the proposed project must provide its approval of the issuance
of the bonds for the financing of the project.
DISCUSSION
Since the facilities to be financed with the proceeds of the CMFA’s debt are located within the
jurisdiction of the City of Palo Alto, the City has been asked to conduct a TEFRA hearing and
adopt a resolution (Attachment A) that approves both the issuance of bonds by the CMFA for the
benefit of GHJDC and authorizes the Mayor, City Manager, or such other designated signatory
to join CMFA.
As cited in the published notice of March 28, 2008, the public hearing is simply an opportunity
for all interested persons to speak or to submit written comments concerning the proposal to
issue the debt and the nature or location of the facility to be financed; however there is no formal
obligation on the part of the borrower or the Council to respond to any specific comments made
during the hearing or submitted in writing.
The financing includes, but is not limited to: (a) financing or refinancing all or a portion of the
costs of (i) the renovation of existing classroom facilities; (ii) landscape improvements to all or a
portion of the School’s facilities; (iii) the acquisition, construction, improvement and equipping
of new educational facilities, which includes demolition of pre-existing buildings unfit for use as
school facilities, including a full-size gymnasium, a performing arts facility, multipurpose
facilities and/or additional educational facilities; (b) paying capitalized interest on one or more
series of the bonds; and (c) paying the costs of issuance of the bonds.
The recommendation includes consideration of the City’s membership in CMFA. The CMFA
was created on January 1, 2004 pursuant to a joint exercise of powers agreement to assist local
governments, non-profit organizations and businesses with the issuance of taxable and tax-
exempt bonds aimed at improving the standard of living in California. In order for the CMFA to
have the authority to serve as the issuer of the bonds for the project, it is necessary for the City of
Palo Alto to become a member of the CMFA. Adoption of the Resolution (Attachment A)
allows the City to join CMFA.
The Joint Exercise of Powers Agreement (Attachment B) provides that the CMFA is a public
entity, separate and apart from each member executing such agreement. The debts, liabilities
and obligations of the CMFA do not constitute debts, liabilities or obligations of the members
executing such agreement. The bonds to be issued by the CMFA for the project will be the sole
responsibility of the borrower, and the City of Palo Alto will have no financial, legal, moral
obligation, liability or responsibility for the project or the repayment of the bonds for the
financing of the project. All financing documents with respect to the issuance of the bonds will
contain clear disclaimers that the bonds are not obligations of the City of Palo Alto or the State
of California but are to be paid for solely from funds provided by the borrower.
The City will in no way become exposed to any financial liability by reason of its membership in
the CMFA. In addition, participation by the City in the CMFA will not impact the City’s
appropriations limits and will not constitute any type of indebtedness by the City. Outside of
CMR: 184:08 Page 3 of 4
holding the TEFRA hearing, adopting the required resolution and executing the Joint Exercise of
Powers Agreement of the CMFA, no other participation or activity of the City or the City
Council with respect to the issuance of the bonds will be required.
Based on the benefits of the projects to the Palo Alto community and the lack of any financial
obligations on the part of the City, staff recommends that Council approve the attached
resolution and membership in the CMFA.
RESOURCE IMPACT
As stated, the City will incur no financial obligation from approval of the recommendations.
Gideon Hausner Day School is requesting authority to issue up to $25 million in bonds. They
may issue bonds in a series over time as capital is needed for its projects. The City will receive a
fee for its services with each issue. The City would receive approximately $9,150 over time if
the par amount of the bonds issued is $25 million.
POLICY IMPLICATIONS
Actions recommended in this report are consistent with Council’s prior actions in supporting
non-profit financings under the TEFRA (e.g., approving tax-exempt financing through the
Association of Bay Area Governments for the Jewish Community Center projects,
CMR: 315:07).
ENVIRONMENTAL REVIEW
Action on this item does not constitute a project under Section 21065 of the Public Resources
Code.
PREPARED BY:
JOSEPH SACCIO
Deputy Director, Administrative Services
DEPARTMENT HEAD APPROVAL:
LALO PEREZ
Director, Administrative Services
CITY MANAGER APPROVAL:
EMILY HARRISON
Assistant City Manager
CMR: 184:08 Page 4 of 4
ATTACHMENTS
Attachment A: Resolution Approving, Authorizing, and Directing Execution of a Joint
Exercise of Powers Agreement Relating to the California Municipal
Finance Authority, and Approving the Issuance of Revenue Bonds by the
California Municipal Finance Authority for the Purpose of Financing or
Refinancing the Acquisition, Construction, and Improvement of Certain
Facilities for the Benefit of Gideon Hausner Jewish Day School.
Attachment B: Joint Exercise of Powers Agreement Relating to the California Municipal
Finance Authority