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HomeMy WebLinkAbout2008-04-28 City Council Agenda Packet 1 04/28/08 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 Council Chambers April 28, 2008 5:30 PM ROLL CALL CLOSED SESSION 1. CONFERENCE WITH LABOR NEGOTIATOR Agency Negotiator: City Manager and his designees pursuant to the Merit System Rules and Regulations (Frank Benest, Emily Harrison, Lalo Perez, Russ Carlsen, Sandra Blanch, Lynne Johnson, Darrell Murray) Employee Organization: Unrepresented Employee Group Management & Professional Employees Authority: Government Code section 54957.6(a) 2. CONFERENCE WITH CITY ATTORNEY -- EXISTING LITIGATION Subject: Silvio Obregon and Margarita Obregon v. The City of Palo Alto, et al.; Santa Clara County Superior Court, Case No.: 107CV087343 Authority: Government Code section 54956.9(a) STUDY SESSION 3. Presentation on the U.S. Green Building Council’s (USGBC’S) Leadership in Energy and Environmental Design (LEED) Green Building Rating System for Commercial Buildings and Additional Information on Environmentally Preferred Purchasing, Community Environmental Action Partnership, and Green Building CMR:216:08 ATTACHMENTS CMR:217::08 ATTACHMENTS 04/28/08 2 SPECIAL ORDERS OF THE DAY 4. California Municipal Utilities Association Award for PaloAltoGreen 5. Proclamation Commending the Great Work of Carroll Harrington, Margaret Suozzo and Walt Hays in Organizing Palo Alto Earth Month PROCLAMATION 6. Proclamation Commending the Students of Addison Elementary School for Reducing Their Use of Plastic Bags PROCLAMATION 7. This Item Number Has Been Intentionally Left Blank 8. Mayoral Acknowledgement of Palo Alto Based Terradex for Receiving the United States Environmental Protection Agency 2008 Environmental Achievement Award 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 March 10, 2008 March 17, 2008 CONSENT CALENDAR Items will be voted on in one motion unless removed from the calendar by two Council Members. 9. Approval of Two Contracts with 3Degrees Group, Inc. for (1) Electric Green Energy Program Services in an Amount Not to Exceed $1,200,000 for a Term of Up to Five Years, and (2) for Natural Gas Green Energy Program Services in an Amount Not to Exceed $250,000 for a Term of Up to Five Years CMR:212:08 ATTACHMENTS 10. Approval of Solar Water Heating Incentive Program Services Contract with the Center for Sustainable Energy California in an Amount Not to Exceed $730,000 for a Term of Up to Five Years CMR:174:08 ATTACHMENTS 11. Approval of City Auditor Ideal Candidate Profile 12. Approval of an Access Agreement Between City of Palo Alto and Save 04/28/08 3 San Francisco Bay Association (Save the Bay) to Permit the Use of Real Property in Order to Implement a Habitat Restoration Project at the Baylands (Byxbee Park) CMR:210:08 ATTACHMENTS 13. Recommendation to Refer Composting Feasibility Study Results and Consideration of an Election that Could Allow Composting to Continue on a Portion of the Landfill After Closure to the Policy and Services Committee CMR:219:08 & ATTACHMENTS 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 PUBLIC HEARINGS 14. Approval of Record of Land Use Action for Site and Design Review to Allow the Construction of a 3,600 Square Foot Ultraviolet Disinfection Facility to Replace the Existing System, and the Adoption of a Resolution Approving the Negative Declaration for the UV Disinfection Facility for the Palo Alto Regional Water Quality Control Plant at 2501 Embarcadero Way CMR:214:08 ATTACHMENTS REPORTS OF COMMITTEES AND COMMISSIONS REPORTS OF OFFICIALS 15. Staff Recommendation for Council Direction on a Three Month Study Regarding a Single-Use Plastic Bag Reduction Program Incorporating the Increased Use of Reusable Bags CMR:202:08 ATTACHMENTS ORDINANCES AND RESOLUTIONS 16. Adoption of an Ordinance to Promote the Use of Recycled Water CMR:203:08 ATTACHMENTS 04/28/08 4 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. ________________________________________________________________________ CMR 216:08 Page 1 of 9 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: City Manager’s Office DATE: APRIL 28, 2008 CMR: 216:08 SUBJECT: UPDATE ON RECYCLING, URBAN FOREST MASTER PLAN, UTILITIES’ CONSERVATION-RELATED PROGRAMS, CLEAN RENEWABLE ENERGY BONDS AND CLIMATE PROTECTION PLAN This is an informational report, and no Council action is required. As part of the Earth Day presentation to Council, the following updates on City sustainability programs are included: Recycling, Urban Forest Master Plan, Utilities Conservation Programs, Clean Renewable Energy Bonds, and Climate Protection. Due to time limitations, staff’s presentation at the Council study session will focus on Green Building, Environmentally Preferred Purchasing and the Community Environmental Action Partnership (CEAP). However, staff familiar with the issues in this report will also be available at the study session to respond to Council questions. DISCUSSION RECYCLING The Recycling Program has been working on a variety of projects and collaborative efforts to implement the City’s Zero Waste Operational Plan. This report provides details on the Green Business Program; Palo Alto landfill restrictions; school green team facilitation; Bay-Friendly Regional Coalition, product stewardship and extended producer responsibility; and a summary of the third year results of the Construction and Demolition Debris Diversion Program. A more detailed report of Recycling Program activities can be found in the Recycling Program’s annual report. Green Business Program The City of Palo Alto is a partner of the Bay Area Green Business Program which rewards local businesses for taking actions to conserve resources, prevent pollution, and minimize waste. The number of Palo Alto businesses certified by the Bay Area Green Business Program has increased dramatically since 2007, from 12 last year to 32 this year, with additional businesses enrolled in the Program. Upon certification, a one-page Green Business Profile is created for the business and posted to the City’s web site, highlighting the business’s accomplishments. City staff actively promotes the program and was asked to deliver a waste reduction presentation to 200 attendees of the 2008 ________________________________________________________________________ CMR 216:08 Page 2 of 9 Santa Clara County Annual Green Business Conference. City staff also collaborates with the Palo Alto Chamber of Commerce on its Palo Alto Business Goes Green initiative to increase the number of businesses certified by the Green Business Program. School Green Teams The Recycling Program is working with the Palo Alto Unified School District and interested Palo Alto schools to establish sustained, site-based, multi-stakeholder, action- oriented Green Teams. Public and private elementary, middle and high schools are all included. The City has hired a contractor to help facilitate the creation of the Green Teams in concert with school administration, teachers, students, and parent volunteers. The Green Teams will develop environmental programs/actions that are cost-efficient, are adapted to site needs, incorporate action-oriented research methods, and include social marketing techniques when applicable. Twelve Green Teams will be developed in calendar year 2008. Schools have been selected according to their interest level. In addition, the contractor will support the five Green Teams already developed through efforts funded by the Palo Alto Unified School District. Bay-Friendly Regional Coalition Public Works and Utilities are taking an active role in the formation of the Bay-Friendly Regional Coalition, a membership organization comprised of individuals representing public agencies, businesses and non-profit organizations from all of the nine Bay Area counties, working together to promote Bay-Friendly landscaping and gardening. Bay-Friendly landscaping and gardening is a whole systems approach to the design, construction and maintenance of landscape that works in harmony with the natural conditions of the San Francisco Bay watershed. It is based on seven principles for sustainable landscaping: Landscape locally; landscape for less to the landfill; nurture the soil; conserve water; conserve energy; protect air and water quality; and create wildlife habitat. Bay-Friendly practices foster soil health and conserve water and other valuable resources while reducing waste and preventing pollution. The Bay-Friendly Regional Coalition builds on work done previously by StopWaste.Org. The Bay-Friendly program provides resources such as trainings, workshops and publications for the both public and private sector landscape professionals and the home gardener. The Bay-Friendly educational materials were developed with guidance from public and private landscape architects and designers, contractors, representatives from Alameda County public agencies and staff of StopWaste.Org. The Coalition is now working to provide these resources regionally. In January, the City of Palo Alto signed the Bay Friendly Coalition’s Declaration of Support of the Seven Bay-Friendly Principles, becoming one of the charter signatories. Product Stewardship and Extended Producer Responsibility The Principles of Extended Producer Responsibility (EPR), also known as Product Stewardship, are being applied by City of Palo Alto Public Works Refuse and ________________________________________________________________________ CMR 216:08 Page 3 of 9 Environmental Compliance Divisions to reduce the amount and toxicity of waste generated. EPR is a policy approach, officially adopted by the State in 2007, holding producers liable for the costs of responsibly managing products at the end of their useful lives. Producer responsibility from “cradle to cradle” is expected to drive green product design, reducing the burden on local governments which have neither the capacity nor funding to deal with toxic, disposable spent products. The goal of EPR is to shift responsibility for the growing group of products banned from landfills, such as fluorescent lamps, alkaline batteries, electronics and sharps (e.g., needles), local governments to the producers of those products. EPR is an essential component of achieving Palo Alto’s zero waste goal. In 2006, to advance EPR, the City joined other local governments to form the California Product Stewardship Council (CPSC). City staff was instrumental in the formation of this organization, initially serving on its Steering Committee, and serving on the Education and Policy Advisory Committee since it became a 501(c)(3) organization in 2007. Activities of the CPSC to date include: • Meetings with staff of Senator Joe Simitian and Assemblyman Ira Ruskin, key political consultants to the State Senate, and members of the Natural Resources Committee to provide education on EPR and an introduction to the CPSC • Delivery of presentations at conferences and working groups of local, regional and State water quality and solid waste agencies, educating local businesses, and discussing opportunities for advancing EPR and zero waste • Providing input at California Integrated Waste Management Board Policy Committee Meetings to indicate the City of Palo Alto’s support for EPR • Signing and submitting a Pledge of Support to the CPSC, indicating support of the mission and function of the CPSC • Sending letters to the State legislature in favor of or opposition to bills, based on inclusion in the bills of EPR language • Working interdepartmentally to include EPR in City purchasing policies and practices Landfill Restrictions Landfill restrictions to help reduce waste disposed of in the Palo Alto landfill are currently under development, with an anticipated effective date of July 1, 2008. Proposed restrictions would target residents and businesses self-hauling waste to the landfill, and tentatively include restricting disposal of: • Recyclables that are accepted at Palo Alto Recycling Center • Construction and demolition debris • Large “clean-out” type loads, instead referring them to the SMaRT Station for sorting and recovery of recyclables These restrictions are based on data from the 2006 Palo Alto Waste Composition Study and recommendations of the Zero Waste Operational Plan, approved in 2007. Staff will bring a report to Council in May 2008. ________________________________________________________________________ CMR 216:08 Page 4 of 9 Third Year Results of the Construction and Demolition Debris Diversion Program In May 2004, City Council adopted an ordinance, Requirement to Divert Construction and Demolition Waste from Landfill, which added Chapter 5.24 to the Palo Alto Municipal Code. In November 2004 the program was fully implemented with the primary goal of diverting construction and demolition debris from local landfills. November 1, 2007 marked the completion of the third year of the program. The program directly handles the debris generated from every demolition permit as well as all building permits with a valuation greater than $75,000. The third year of the program included review and approval of 531 projects participating in the program--a 9% increase from the previous year (483 projects). The total number of tons diverted from the landfill increased from 21,710 tons in the previous year to nearly 63,000 tons in 2006- 07. The number of projects completing salvage increased from 11% to 16%. The number of finished jobs that complied with the requirements of the program increased from 33% to 44%. (See Attachment A for complete details.) The most common material diverted from the landfill was concrete, representing 46% of all material diverted. Mixed C&D material (e.g., wood, metal, gypsum board, concrete) was the second most common material diverted from the landfill, representing 15% of all material diverted. Asphalt, ceramic tile and metal were the other materials most often diverted from the landfill. Additional program results include: • Commercial demolition projects generated 79% of all debris diverted from the landfill • 73% of all C&D related projects were residential: ƒ 75% were building permits ƒ 25% were demolition permits • 62% of all C&D debris generated was concrete • Steven’s Creek Quarry accepted the largest amount of C&D debris of any approved recycling facility, accepting 16% of debris diverted from the landfill • 41 projects received compliance letters for not complying with the program requirements Upon evaluation of the third year, the following adjustments to the program are planned to enhance the overall results: • Placing more focus on salvage as a viable option for diversion. Options include: ƒ Researching the possibility of developing a Resource Recovery Center for building materials that still have reusable value. ƒ Bringing in outside personnel to conduct site audits to help the applicant identify what items are salvageable prior to the demolition phase of the project. (This idea was discussed after the second year of the program and is still being explored as a possible option.) ƒ Exploring incentives to help increase salvage efforts. • Developing a comprehensive web page as a resource for citizens to list materials that are available for reuse, and to increase overall awareness of salvage ________________________________________________________________________ CMR 216:08 Page 5 of 9 URBAN FOREST MASTER PLAN The State (Cal-Fire) notified the City in early February that the City’s two grant applications for urban forestry projects were successful. The total funding award is $180,000. Of this, the City will use $120,000 to update its tree inventory and enhance the availability of this information in the GIS system. The other $60,000 will be used for a consultant to assist in the development of the City’s Urban Forest Master Plan, a comprehensive strategy and planning document targeted at urban forestry issues in Palo Alto. The two projects are complementary, with the inventory work gathering the data necessary to formulate goals and strategies for continued management and expansion of Palo Alto’s urban forest through the master plan. The State required the completion of additional documentation prior to initiation of the grant projects. Staff submitted this paperwork in mid-March. Once the City receives final approval from the State, work will begin in earnest on the inventory. The current timeline for completion of the inventory and integration into the GIS system is April/May 2009. A cross-departmental team, which also includes representatives from CANOPY, has already begun work on the master plan development. However, the majority of the plan development work will occur after completion of the inventory, with anticipated Council adoption of the plan in spring or summer of 2009. The grant requires that work on the projects be completed by March 2010. Staff plans to provide the Council with periodic status reports as the work progresses. UTILITIES’ CONSERVATION-RELATED PROGRAMS Over the last year (2006-07), the results of the City of Palo Alto Utilities (CPAU)’s efficiency and conservation programs have included: • The Electric Utility has implemented demand-side efficiency programs and large long-term supply-side efficiency improvements, and installed over 200 PV systems. Plans for 2008-09 include third-party conservation programs and required measurement and verification of the Utility’s efficiency program results. Achievements of the demand side programs include a reduction in peak demand by 1,100 kW; first year energy savings of 4,700 MWh; and lifecycle energy savings of 49,000 MWh, at a saved energy cost below the market cost of procured energy. Major savings in demand-side programs come from industrial cooling, low-income efficiency replacements, CFL rebates, and the Right Lights small business programs. Large long-term supply-side efficiency improvements come from a Shasta turbine upgrade (3,000 MWh/yr) and distribution system conversions (300 MWh/yr). • The Gas Utility implemented a Low Income Efficiency Program that replaced 12 furnaces and weather stripped/caulked leaks in 54 homes in 2007, saving a total of 9,600 therms. A Research and Development program with ground source heat pumps (GSHP) has been installed with ongoing comparisons made between ________________________________________________________________________ CMR 216:08 Page 6 of 9 traditional air conditioning and GSHP in two locations. The Utility is also developing a new solar water heating incentive program. • The Water and Wastewater Utilities have partnered with SCVWD to reduce residential and business water use; signed a new 3-year contract with SCVWD to continue cost sharing of efficiency and water conservation programs; and implemented programs including Water Wise House Calls, High Efficiency Toilet (HET) Rebate and Replacement, Washing Machine Rebates, and Outdoor Irrigation Rebates. A total of 99 acre feet of water and 66,000 therms of gas were saved in water/gas efficiency programs in FY 06/07. Current year programs emphasize outdoor water reduction programs and the use of Bay-Friendly plants. CLEAN RENEWABLE ENERGY BONDS The Administrative Services Department worked with Utilities to issue $1.5 million in Clean Renewable Energy Bonds to help finance solar panels on three City properties: Baylands Interpretive Center, Cubberley Community Center, and the Municipal Services Center. The bonds were issued in November 2007. Clean Renewable Energy Bonds (CREBs) are interest-free financing instruments (in lieu of receiving interest, lenders receive a tax credit against Federal income taxes) that can be used for wind, closed and open-loop biomass, geothermal, solar energy, small irrigation power, landfill gas, and other qualifying facilities. Congress authorized up to $800 million of these bonds with the passage of the Energy Tax Incentives Act of 2005. The City applied for the CREBs in late April 2006, and received approval in November 2006 from the Internal Revenue Service on its application for $1.5 million in CREBs. These bonds were approved specifically for use on the Photovoltaic Solar Panel Project (PE-05001) which placed solar panels at the three sites indicated above. The remaining project expenses were funded by the Electric Utility’s public benefit funds. Palo Alto was one of the first jurisdictions in the nation to issue these bonds. CLIMATE PROTECTION PLAN The Council approval of the CPP on December 3 2007 (CMR: 435:07) included recommendations for the City to reduce greenhouse gas emissions from municipal operations by 5% (3,266 tons of CO2) by 2009 and by 15% (10,000 tons) by 2015. Additionally the Council directed the City Manager to produce an annual report that details the actions leading to emissions reductions and the impacts of those actions. Since that approval, staff has been working to implement the recommendations of the Council regarding the CPP. These efforts have focused on: 1. Obtaining feedback from the public on the CPP. Staff has worked with a variety of public groups to solicit comments, suggestions and other feedback on the CPP. Staff has made many of the changes suggested by this feedback, and a revised version of the CPP is now on the City’s website. ________________________________________________________________________ CMR 216:08 Page 7 of 9 2. Reducing City emissions in 2009. Staff has analyzed the emissions profiles of each City department and developed emission reduction goals for each. These departmental goals range from a low of 4 tons required reduction for the City Auditor, to a high of 1,381 tons reduction for Public Works. Staff has met with department heads to present these reduction goals and initiate a dialog on how to develop a strategy for each department to meet its goals. The proposed reductions for each department are presented in Table 1. 3. Developing long term strategies for reducing emissions by 15% by 2015. The City has retained URS, a well respected Bay Area environmental consulting firm, to work with City staff to enhance the cost benefit assessments of the 120 suggested actions contained in the CPP. Additionally, the City is working with a group of Stanford undergraduates to analyze sustainability efforts related to Environmental Purchasing. Finally, staff is working with the Rocky Mountain Institute to develop an overarching methodology to ensure that all areas being examined (transportation, waste, purchasing, energy, green building) follow a uniform analytical approach. These three groups of outside experts are working collectively with staff to develop a comprehensive and robust assessment of options for the City to accelerate its carbon emission reduction plan, and to do so in the most cost-effective manner possible. Staff expects to issue a final report on the cost benefit analyses in June 2008. ________________________________________________________________________ CMR 216:08 Page 8 of 9 Table 1. Estimated greenhouse gas emissions by Department and 5% reduction requirements Emissions As Reported in the Climate Protection Plan Reductions Required Department Non Fuel Emissions = Electricity +Gas + Travel+Office Products Fuels = Mobile +Stationary and Off Road Other "Responsible" Emissions (leakage and biogenic) reported in CPP "Total Departmental Emissions" 2005 5% Reduction = Tons of CO2e ASD 2,099 19 2,118 106 Auditor 759 759 4 City Attorney 203 203 10 City Clerk 127 127 6 City Manager 217 59 276 11 Community Services 1,834 245 2,079 104 Fire 2,396 281 2,677 134 Human Resources 294 1 295 15 Library 825 825 41 Planning 1,005 34 1,039 52 Police 3,075 527 3,602 180 PWD 3,714 934 22,970 27,618 1,381 Utilities 4,414 677 19,358 24,449 1,222 Total 20,962 2,172 42,328 66,067 3,266 RESOURCE IMPACT All of the programs discussed in this report, except for Recycling’s landfill restrictions, are covered under existing program budget and staffing. The landfill restrictions resource impact and policy implications will be discussed in a future report to Council. ________________________________________________________________________ CMR 216:08 Page 9 of 9 POLICY IMPLICATIONS All of the above programs are in line with the City’s Sustainability Policy, Council’s adoption of the Climate Protection Plan, and other existing City policies. ENVIRONMENTAL REVIEW The actions described in this report are exempt from the California Environmental Quality Act (CEQA), pursuant to California Code of Regulations, Title 14 §15061(b)(3), because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. PREPARED BY: WENDY HEDIGER JOYCE KINNEAR KELLY MORARIU NANCY NAGEL JASON NORTZ ANNETTE PUSKARICH KARL VAN ORSDOL CITY MANAGER APPROVAL: ____________________________________________ EMILY HARRISON Assistant City Manager ATTACHMENT Attachment A: City of Palo Alto Construction and Demolition Diversion Program Year Three Review ________________________________________________________________________ CMR 217:08 Page 1 of 6 TO: HONORABLE CITY COUNCIL 3 FROM: CITY MANAGER DEPARTMENT: City Manager’s Office DATE: APRIL 28, 2008 CMR: 217:08 SUBJECT: STUDY SESSION: PRESENTATION ON THE U.S. GREEN BUILDING COUNCIL’S (USGBC’S) LEADERSHIP IN ENERGY AND ENVIRONMENTAL DESIGN (LEED) GREEN BUILDING RATING SYSTEM FOR COMMERCIAL BUILDINGS AND ADDITIONAL INFORMATION ON ENVIRONMENTALLY PREFERRED PURCHASING AND THE COMMUNITY ENVIRONMENTAL ACTION PARTNERSHIP The Earth Day Study Session will include updates on Environmentally Preferred Purchasing, the Community Environmental Action Partnership, and Green Building. ENVIRONMENTALLY PREFERRED PURCHASING Environmentally Preferred Purchasing (EPP) is the purchase of products or services that have a lesser or reduced impact on human health and the environment when compared with competing products or services that serve the same purpose. Such products or services may include those which contain recycled content, minimize waste, conserve energy or water, and/or reduce the amount of toxics disposed of or consumed. In its 2007-08 Budget, the City allocated $16.5 million on materials and supplies from its General, Enterprise, and Capital Improvement Project Funds. Incorporating EPP criteria into these direct expenditures could have an indirect impact on the City’s climate protection goals, as well as on other sustainability policies and programs such as Zero Waste, green building, and pollution prevention. Beyond City operations, the City’s purchase of EPP products and services, in conjunction with the environmental purchasing efforts of other Bay Area or State public agencies, might stimulate market demand and further expand access to these products and services. The City has already incorporated environmental criteria into some of its purchasing. For example, since 2000, the City reduced its energy use by 17% through its purchase and installation of energy efficient office and LED street lighting and low-mercury fluorescent lights; its purchase of 30%-100% recycled-content for copy and bathroom papers respectively; and the use of “less-toxic” custodial, pest control and printing services and products. These efforts, however, have been driven by specific department initiatives rather than by a systemic, citywide approach and are not always uniformly applied across the organization. To institutionalize the consideration of environmental impacts that are cost neutral to the City during the purchasing process, staff is in the midst of incorporating EPP ________________________________________________________________________ CMR 217:08 Page 2 of 6 criteria into several contracts that are going out to bid in spring of 2008. In addition, staff is drafting an EPP implementation plan which should be completed by June 2008. Since the adoption of the Climate Protection Plan in December 2007, which authorized the pursuit of EPP, staff has: • Completed an EPP policy and initial procedures. Procedures will be revised iteratively as the EPP program unfolds. • Set up an intranet infrastructure to connect the Purchasing Manual with environmental policies and related purchasing preferences • Begun the development of a cost benefit methodology to incorporate adders and operational efficiencies into the evaluation of product costs • Engaged City staff from several departments to redraft specifications and scoring for the copier contract and begun exploring options and drafting a timeline for the printer contract RFP to include automatic duplexing • Incorporated EPP criteria into the City’s Office Supply Contract which is going out for bid in May 2008. The EPP priorities for the contract are to identify 100% recycled content paper and remanufactured toner cartridges that offer both waste and greenhouse gas reduction opportunities. In addition, the RFP seeks to increase vendor responsibility for packaging and hazardous waste reduction and to include an on-line ordering system to make it easier for staff to identify and purchase green office supplies. • Worked with Stanford Student Environmental Consulting Team on assessing cost benefits of designated products • Started planning EPP priorities for 2008-2009 • Begun to explore opportunities to “green” other contracts including copiers, printers, and the City’s cafeteria and custodial vendors. This effort is in the beginning stages, and impacts will be contingent on cost benefits, City operational needs, and the extent of available products and services. • Saved $30,000 through avoided purchases. One aspect of EPP is to look at operational changes that might reduce the need for purchases and resource use, or that might offset the cost of more expensive EPP products or services. The City’s Administrative Services Department identified an opportunity to avoid a significant cost by using PDFs for a selection of monthly IT Division reports instead of printing paper copies. Environmental benefits from this project’s avoided paper use alone were a reduction of .76 metric tons of GHG emissions and an equivalent of six trees. In addition, the department avoided purchasing a new printer that would have been required had the paper printing of these reports continued. Similar paper-saving measures are being explored in other City departments. Budget Implications of EPP The implementation of Environmentally Preferred Purchasing Procedures requires staff time and may require additional financial resources when “green” products or services cost more than conventional ones. Through the effort to green the City’s office supply contract, staff is exploring how to evaluate potential cost increases and find ways to offset these increases through operational efficiencies, and factor into cost-benefit ________________________________________________________________________ CMR 217:08 Page 3 of 6 calculations multi-year use and the achievement of environmental priorities such as waste reduction and climate protection. As EPP efforts unfurl, staff may deem it necessary to return to Council to seek approval for contracts that help achieve environmental goals, but may cost more. COMMUNITY ENVIRONMENTAL ACTION PARTNERSHIP (CEAP) The Education and Motivation chapter of the CPP described a standing committee to be created including citizens, staff, and experts to implement community-wide emissions reduction efforts. It followed the model created by the Green Ribbon Task Force (GRTF) including representatives of all the segments comprising the community: schools, businesses, nonprofits, neighborhood groups, government, and the faith community. After a few weeks of planning with a core group of citizens, the first two meetings of the CEAP took place on March 5 and April 9. At the March 5 meeting, with over 100 in attendance, participants were broken into small groups to talk through the draft mission and goals for the CEAP, as well as to brainstorm potential actions. At the April 9 meeting, the mission and goals were approved, as were the structure of the group and the group’s focus for the first year: climate protection. Each of eight segments (medical and Stanford communities were added as segments) will have one liaison to the CEAP, while all members of the public are welcome to attend meetings. Liaisons are responsible for communicating with their segments and facilitating the implementation of the actions or initiatives selected by their segments. The next meeting will take place May 7, 4 to 6 pm, at Cubberley Community Center. Budget Implications of CEAP In 2008-09, it is anticipated that staff resources will be required for the initial half of the year, until the group is completely launched and self-supporting. Additional expenses would be minor, under $5,000, and will be included in the 2008-09 City Manager’s (Sustainability Team) budget. GREEN BUILDING During the summer of 2007, City staff coordinated the presentation of two educational sessions in the Council Chambers regarding two green building programs: USGBC’s (United States’ Green Building Council) LEEDTM (Leadership in Energy and Environmental Design) and BIG’s (Build It Green) GPRTM (Green Point Rated). These sessions were intended for Council members in particular but were attended by others. Council Actions on Green Building in 2007 The Climate Protection Plan (CPP) included an incremental approach, originally recommended by the GRTF, requiring BIG’s program for residential projects and the USGBC’s program for non-residential projects. Also in 2007, Council: ________________________________________________________________________ CMR 217:08 Page 4 of 6 • Reviewed an implementation schedule for mandatory non-residential and multi- family residential green building by July 2008, and low density residential green building by July 2009 • Adopted a green building ARB approval finding and zoning text allowing the City to require green building checklists • Adopted an amended green building policy for City facilities that lowered the threshold from 10,000 square feet to 5,000 square feet, raised the LEEDTM level from Certified to Silver, and included limited exemptions • Adopted the 2005 California Energy Code Green Building Ordinance in 2008 On March 12 and April 9, 2008 the Planning and Transportation Commission (Commission) held study sessions to review and discuss staff’s proposal for green building criteria for private development. On April 9 and April 17, 2008, the Commission and ARB, respectively, were scheduled to review and recommend a draft green building ordinance and companion resolution to set green building criteria. Council adoption of the proposed ordinance and resolution will result in commencement of the mandatory residential green building program in 2008 rather than in 2009 as initially reported to Council in 2007. The Council date for adoption of the ordinance (May 12, 2008) would allow the ordinance to become effective by July 2008. The ordinance incorporates the use of the BIG’s GPRTM residential green building program and the (USGBC) LEEDTM non- residential green building program. The ordinance will include provisions for limited exemptions and specify methods of verification and enforcement. The staff report for Council’s May 12, 2008 public hearing of the proposed green building ordinance will provide additional discussion to support the adoption of the ordinance, and will include further description of outreach and Commission meeting minutes related to this topic. Green Building Working Group and Outreach An interdepartmental Green Building Working Group (Group), led by the City’s Chief Building Official and comprised of City staff from Public Works, Administrative Services, Utilities, and Planning and Community Environment Departments, is focused on issues related to establishing a mandatory green building program. The group includes three BIG certified professionals and a LEEDTM Accredited Professional; the group has also sought input from the two ARB members and a contract planner (working in the Individual Review program), who are all LEEDTM accredited. The Group and its members have been engaging in the following pursuits: • Assembling past-year data to assist development of the green building ordinance, and Title 24 data for summaries of building permit activity beginning in 2008 • Researching how to achieve the greatest efficiencies, rebates for certification or similar incentives to increase the level of green building • Pursuing staff training in conjunction with the rollout of the mandatory programs. Group staff members are attending regional BIG meetings, green building seminars and workshops, and members are looking toward obtaining additional training in LEEDTM and GPRTM. ________________________________________________________________________ CMR 217:08 Page 5 of 6 • Providing “At-a-Glance” Matrix of Incentives to Build Green, in collaboration with BIG, indicating rebates, tax credits and services available to help Palo Alto residents build or remodel their home “green”; grouped into six categories, the incentives correspond to BIG guidelines for new and remodeled homes. • Launching the Ask an Expert Hotline, a BIG service providing unbiased, customized responses, via phone or email, to green building questions from building professionals and residents of Palo Alto. The Hotline will provide information to make callers’ (clients’) homes healthier and higher performing; it is funded by Public Works (PW), Utilities, and Planning and Community Environment. • Collaborating on an author event at the Palo Alto Main Library in September 2007 with the Public Works Recycling Program, Palo Alto City Library, Friends of the Library, and Books Inc. Jennifer Roberts, environmental management specialist, energy expert, and author of Good Green Homes Redux: Designs that Reuse, Recycle and Reveal, and Good Green Kitchens, presented information and answered questions on practical, money-saving and environmentally conscious ways to build, remodel, and improve homes. In addition, the Palo Alto City Library expanded its collection of green building books available for loan to the community. • Sponsoring the Green Home Tour planned for September 2008 to showcase innovative new and remodeled green homes in Santa Clara and San Mateo Countries, enabling homeowners and/or developers to share their green building experiences with the community, educate tour attendees on the variety of green building materials and methods currently being used locally, showcase green building features which are both aesthetically pleasing and environmentally friendly, and demonstrate that homes can incorporate green features on any budget. The event also includes a green building materials and vendor faire. This study session will include a “primer” from the Chief Building Official on the LEEDTM green building program, providing the opportunity to discuss the differences among LEEDTM green building levels. The primer will also identify LEEDTM checklist points most frequently gained by development projects registered with the USGBC. The April 28 study session does not include discussion of the BIG program, which is used only in California and only for residential projects. In Palo Alto, green building checklists are required to be submitted with other planning entitlement applications but are not required or provided with building permit application materials. Green building information is provided at the Development Center kiosk and the Ask and Expert Hotline, and the Development Center website provides a link to USGBC and BIG web sites. The Santa Clara County Cities Association’s Green Building Collaborative advocates the countywide use of the LEEDTM checklist for non-residential projects and the GPRTM checklist for residential projects. Staff and a Council member are among the members of the Collaborative, and Palo Alto’s program development is being shared with the group. Other Bay Area cities have adopted policies and ordinances referring to these industry- recognized programs. ________________________________________________________________________ CMR 217:08 Page 6 of 6 Budget Implications of Green Building Substantial staff hours will be required to implement the City’s green building program and ordinance. Detailed estimates of the staff hours involved in outreach, education, and training will be provided with the ordinance when presented to Council. Financial incentives for exceeding minimum green points for residential construction are under consideration -- specifically, the use of Utilities funds earmarked for improved energy efficiency in Palo Alto and for training and education. Rebates associated with a dollar amount per point exceeded are being considered, and this concept is supported by the ARB. The program would be designed to offset costs associated with review of the checklists and verification by a third party green point rater (for residential buildings). Additional, non-financial, incentives are being considered by other departments as well. PREPARED BY: AMY FRENCH NANCY NAGEL ANNETTE PUSKARICH JULIE WEISS CURTIS WILLIAMS CITY MANAGER APPROVAL: ____________________________________________ EMILY HARRISON Assistant City Manager ATTACHMENT: Attachment A: Environmental Purchasing Policy CMR: 212:08 Page 1 of 4 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: UTILITIES DATE: APRIL 28, 2008 CMR: 212:08 SUBJECT: APPROVAL OF TWO CONTRACTS WITH 3DEGREES GROUP, INC. FOR (1) ELECTRIC GREEN ENERGY PROGRAM SERVICES IN AN AMOUNT NOT TO EXCEED $1,200,000 FOR A TERM OF UP TO FIVE YEARS, AND (2) FOR NATURAL GAS GREEN ENERGY PROGRAM SERVICES IN AN AMOUNT NOT TO EXCEED $250,000 FOR A TERM OF UP TO FIVE YEARS RECOMMENDATION Staff recommends that City Council: 1. Approve and authorize the City Manager to execute the attached contracts with the 3Degrees Group, Inc. for Electric and Natural Gas Green Energy Program Services; and 2. Authorize the City Manager to extend the contract annually for up to four additional years, subject to Council approval of funding. BACKGROUND The City established PaloAltoGreen in April 2003 (CMR:230:03). Within two years, the program achieved the highest participation rate of any voluntary green power program in the nation, reported by the U.S. Department of Energy’s National Renewable Energy Laboratory. The program continues to maintain its number one status and recently surpassed the 20% participation rate milestone. PaloAltoGreen sales are about 4% of all electric sales. As part of its Climate Protection Plan (CMR:435:07), the City has set a goal of increasing this to 5% of annual energy sales by 2010 and 10% by 2020, and developing and implementing a voluntary non-fossil natural gas program, also included in the Gas Utility Long-Term Plan (approved Feb 11, 2008 CMR:134:08). DISCUSSION The current contract for marketing support and program administration for the City of Palo Alto’s Green Pricing Program, PaloAltoGreen, will expire on April 30, 2008. In December 2007, the City issued a Request for Proposals (RFP) seeking proposals from organizations interested in providing marketing and administration services for both the existing electric green power program, PaloAltoGreen, and in developing a similar program for biogas customers. 9 CMR: 212:08 Page 2 of 4 Selection Process The RFP was mailed to 28 firms and organizations that might have this service or know of companies who do. The list included: Green Power Network, California Municipal Utilities Association, the Center for Resource Solutions, Northern California Power Agency, California Energy Commission, and Hometown Connections of the American Public Power Association. These firms are all known to offer relevant services. In addition, the RFP was advertised via the Green Power Network. Two firms responded to the RFP. The primary goal of the two programs is to improve customer satisfaction by achieving high participation rates, measured as a percentage of customers participating in the program. A staff committee reviewed each firm's proposal, qualifications and submittal in response to the RFP relative to the following criteria: references; qualifications of principals and staff; familiarity with the City; financial stability; price range; completeness of proposal; proposal clarity; methodology; marketing support; program development; and completeness of response to scope of services. The committee recommended the use of a blended approach using both consultant expertise and in-house resources. This blended approach reduces costs for the program by increasing participation rates and reducing the need for additional internal staffing, as well as reducing the total cost of sales support, marketing communication materials, and program advertising. Based on the rankings of the selection committee, 3Degrees Group, Inc. (3Degrees), a California energy service provider serving retail corporate, non-profit and residential customers with renewable energy certificates as well as verified emissions reduction credits, was selected as the sole consultant for the electric and gas programs. Due to its history in creatively marketing highly performing voluntary green energy programs, 3Degrees is the most qualified to provide these services cost-effectively in such a highly specialized field. 3Degrees provides services for five green pricing programs or similar programs across the U.S. 3Degrees will provide services in the following areas: (1) Marketing support and Green-e energy certification; (2) Renewable energy certificates, verified emission reduction credits; and (3) Development and implementation of a voluntary natural gas green energy program. RESOURCE IMPACT Since PaloAltoGreen is a cost pass-through voluntary program, there is no net impact on City financial resources. Extra costs paid by customers for the program through their rates will go to fund the purchase of renewable energy and any renewable energy credits required to achieve 100% of customer energy usage. No change in Council approved fees for PaloAltoGreen are requested at this time. Funds for FY07/08 and 08/09 are included in the electric and natural gas fund budgets. Funds for subsequent years will be subject to appropriation of funds in subsequent budgets. Currently over 20% of electric customers are participating in PaloAltoGreen. Staff anticipates that this will increase to 25% to 30% during the course of the contract. For the PaloAltoGreen CMR: 212:08 Page 3 of 4 Biogas program, a recent survey of current PaloAltoGreen customers indicated that roughly 60% of the respondents would be likely to join. Based on these results, staff anticipates that 4% to 10% of natural gas customers would likely participate, leading to additional premium revenues and equivalent expenditures of up to $50,000 annually. Table 1. Staff five-year estimate of contract cost and retail electric revenue. MWhs Palo Alto Revenue 3Degrees Contract Net PA Revenue Average % Enrolled FY 07-08 49859 $ 747,884 $ 261,759 $ 486,125 20% FY 08-09 57338 $ 860,067 $ 172,013 $ 688,053 23% FY 09-10 63072 $ 946,073 $ 189,215 $ 756,859 25% FY 10-11 68748 $ 1,031,220 $ 206,244 $ 824,976 28% FY 11-12 72185 $ 1,082,775 $ 216,555 $ 866,220 29% FY 12-13 75794 $ 1,136,910 $ 227,382 $ 909,528 30% Table 2. Staff five-year estimate of contract cost and retail gas revenue. Therms Palo Alto Revenue 3Degrees Contract Net PA Revenue Percent of Total FY 08/09 519800 $ 571,780.00 $ 31,188.00 $ 540,592.00 4% FY 09/10 1039600 $ 1,143,560.00 $ 62,376.00 $ 1,081,184.00 8% FY 10/11 1559400 $ 1,715,340.00 $ 93,564.00 $ 1,621,776.00 12% FY 11/12 2079200 $ 2,287,120.00 $ 124,752.00 $ 2,162,368.00 16% FY 12/13 2599000 $ 2,858,900.00 $ 155,940.00 $ 2,702,960.00 20% POLICY IMPLICATIONS The recommended contract supports the Council-approved Gas Utility Long-Term Plan, the Long-term Electric Acquisition Plan, and the Comprehensive Plan Goal N-9. Furthermore, renewable energy plays an important role in achieving greenhouse gas reduction targets reflected in California Climate Action Team goals and AB 32 (California Global Warming Solutions Act of 2006), and identified in the Palo Alto Climate Protection Plan. ENVIRONMENTAL REVIEW These services do not constitute a project for the purposes of the California Environmental Quality Act (CEQA) pursuant to California Public Resources Code Section 21065, thus, no environmental assessment is required. CMR: 212:08 Page 4 of 4 ATTACHMENT A. Agreement Between the City of Palo Alto and 3Degrees Group, Inc. for Professional Services PREPARED BY: BRIAN WARD Utilities Account Representative JOYCE KINNEAR Manager, Utilities Marketing Services DEPARTMENT HEAD: _________________________________ VALERIE O. FONG Director of Utilities CITY MANAGER APPROVAL: _________________________________ EMILY HARRISON Assistant City Manager CMR: 174:08 Page 1 of 3 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: UTILITIES DATE: APRIL 28, 2008 CMR: 174:08 SUBJECT: APPROVAL OF SOLAR WATER HEATING INCENTIVE PROGRAM SERVICES CONTRACT WITH THE CENTER FOR SUSTAINABLE ENERGY CALIFORNIA IN AN AMOUNT NOT TO EXCEED $730,000 FOR A TERM OF UP TO FIVE YEARS RECOMMENDATION Staff recommends that City Council: 1. Approve and authorize the City Manager to execute the attached contract with the Center for Sustainable Energy California for Solar Water Heating Incentive Program services; and 2. Authorize the City Manager to extend the contract annually for up to four additional years, subject to Council approval of sufficient funds. BACKGROUND The City of Palo Alto Utilities Department (CPAU) proposed implementing a solar water heating incentive program in the City’s Ten-Year Energy Efficiency Portfolio Plan, approved by Council in April 2007 (CMR:216:07). Since that time, the State Legislature enacted California’s Solar Water Heating and Efficiency Act of 2007 (AB 1470) in October 2007, which requires natural gas utilities, including the three publicly-owned gas utilities, Palo Alto, Long Beach, and Coalinga, to implement and fund solar water heating incentive programs. The proposed contract is intended to ensure effective and successful design and implementation of a solar water heating program in order to meet the goals described in the City’s Ten-Year Energy Efficiency Portfolio Plan and to fulfill the statutory requirements described in AB 1470. A “solar water heating system” as defined in AB 1470 is a solar energy device with the primary purpose of reducing demand for natural gas through water heating, space heating, or other methods of capturing energy from the sun to reduce natural gas consumption in a home, business, or any building receiving natural gas that is a utility retail customer that meets or exceeds certain eligibility criteria. CPAU’s estimated proportionate share of the State goal to CMR: 174:08 Page 2 of 3 install 200,000 solar water heating systems by 2017 is approximately 530. As part of the Palo Alto Climate Protection Plan (CMR:435:07), the City has set a goal of achieving 1,000 systems by 2020. DISCUSSION In December 2007, the City issued a Request for Proposals (RFP) seeking responses from organizations interested in providing a turnkey solar water heating incentive program that would be available for CPAU customers. The RFP was sent to eight consulting firms known to offer relevant services (of these one responded to the RFP). The Center for Sustainable Energy California (CSEC) is a highly qualified non-profit organization with demonstrated capability to perform the work. The program will build on the Solar Water Heating (SWH) Pilot Project, currently being managed by CSEC for the State, which is specifically identified in AB 1470 as providing key data upon which the State will base much of its initial program guidelines. CSEC will provide services in the following areas: (1) Design of a comprehensive solar water heating incentive program; (2) Training for City staff, solar contractors, and utilities customers; and (3) Administration of the program, once implemented. CSEC was chosen by the California Public Utilities Commission (CPUC) to administer the San Diego Solar Water Heating Pilot Program. CSEC’s goal since the pilot program launched in July 2007 is to gain valuable information on the market, technologies, potential barriers, effectiveness and financials of solar water heating in California. Their knowledge and experience managing the State’s SWH Pilot Program in San Diego will greatly help the City navigate its own program. RESOURCE IMPACT The total budget impact by fiscal year is shown below: Year 1 Year 2 Year 3 Year 4 Year 5 Total Contract Not-to-Exceed Contract Estimate Per Year $155,000 $136,000 $140,000 $147,000 $152,000 $730,000 Note that these costs are for program development and implementation. Customer rebates will be paid out of energy efficiency incentive public benefit program funds. Funds for FY 07/08 and 08/09 are included in the Gas Fund adopted and adopted-in-concept budgets, respectively. Funds for subsequent years will be subject to appropriation of funds in subsequent budgets. POLICY IMPLICATIONS The proposed contract supports the Council-approved Gas Utility Long-Term Plan, the Ten-year Energy Efficiency Portfolio Plan, and Comprehensive Plan Goal N-9. Implementation of the solar water heating incentive program supports greenhouse gas reduction goals identified in the Palo Alto Climate Protection Plan and in the California Global Warming Solutions Act of 2006 (AB 32) and meets the statutory requirements of California’s Solar Water Heating and Efficiency Act of 2007 (AB 1470). CMR: 174:08 Page 3 of 3 ENVIRONMENTAL REVIEW The provision of these services do not constitute a project pursuant to Section 21065 of the California Public Resources Code, thus no environmental review under CEQA is required. ATTACHMENT A. Contract: Center for Sustainable Energy California PREPARED BY: AMANDA COX, Utilities Account Representative JOYCE KINNEAR, Manager, Utilities Marketing Services DEPARTMENT HEAD: _________________________________ VALERIE O. FONG Director of Utilities CITY MANAGER APPROVAL: _________________________________ EMILY HARRISON Assistant City Manager _________________________________________________________________________________________________ CMR:210:08 Page 1 of 3 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: COMMUNITY SERVICES DATE: APRIL 28, 2008 CMR:210:08 SUBJECT: APPROVAL OF AN ACCESS AGREEMENT BETWEEN CITY OF PALO ALTO AND SAVE SAN FRANCISCO BAY ASSOCIATION (SAVE THE BAY) TO PERMIT THE USE OF REAL PROPERTY IN ORDER TO IMPLEMENT A HABITAT RESTORATION PROJECT AT THE BAYLANDS (BYXBEE PARK) RECOMMENDATION Staff recommends that Council authorize the City Manager or his designee to enter into an access agreement with Save the Bay to permit the use of real property within the Baylands (Byxbee Park) in order to implement a habitat restoration project with specified grant funding provided by the California Coastal Conservancy to Save the Bay. BACKGROUND Since 2001, City staff has worked cooperatively with Save The Bay to involve local schools, community groups, businesses, and agencies in wetland restoration at the Baylands. The focus of Save the Bay’s work is native plant species propagation in order to restore habitat in the Baylands and lower reaches of San Francisquito Creek. Since the inception of the partnership, Save The Bay has engaged more than 12,000 students and community volunteers in wetland restoration at the Baylands Preserve, and has worked with City staff to establish a successful on- site native plant nursery. To date, volunteers have removed more than 50 tons of invasive weeds; and have collected seed, propagated, and planted more than 35,000 native plants to improve wetland transition zone habitat. By providing local opportunities for individuals to participate in hands-on restoration activities, Save the Bay involves a variety of community members in Bay education, habitat restoration, and environmental stewardship. DISCUSSION In order to be successful in re-establishing a healthy wetland habitat in the Baylands, staff has worked with Save the Bay to create a habitat restoration program. The program calls for planting 10,000 native plants, controlling weeds along San Francisquito Creek and adjacent areas of the Baylands, and monitoring the successful vegetation of the restored area. 12 _________________________________________________________________________________________________ CMR:210:08 Page 2 of 3 On December 13, 2007, the State Coastal Conservancy authorized a two-year, $125,000 grant to Save The Bay to undertake a habitat restoration project with school and volunteer groups at the Palo Alto Baylands Preserve. Under the terms of the grant, Save The Bay will implement a restoration project, including trash collection, eradication of non-native plants, collection of seeds or cuttings, and planting of appropriate native species. The Preserve will remain open during the entire restoration project. The completion date of the project stipulated in the grant agreement is seven years from the date the agreement is signed. The inclusion of a four-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 Save the Bay access to the project site by the City of Palo Alto for a period of seven years from the date this agreement is signed. The grant conditions require the the City to grant a non-exclusive access agreement to permit the restoration work. Because this agreement extends more than three years, Council authority to enter into this agreement is required under the City’s Code. This land owner agreement will satisfy the Coastal Conservancy’s requirement that the project site will be adequately sustained through 2015. RESOURCE IMPACT This access agreement with Save the Bay does not increase the City’s responsibilities or operating expenses. Work covered by the grant application to restore City-owned park land is currently a focus for Save the Bay. The City of Palo Alto works closely and cooperatively with Save the Bay to manage the natural resources of the Baylands 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. City is already responsible for the maintenance of the project site. The long-term success of viable wetland habitat will ultimately benefit native wildlife, and will reduce City labor and maintenance costs in controlling weeds in the Baylands Preserve. POLICY IMPLICATIONS This recommendation is consistent with existing City policy, and furthers the goals of the natural environment element of the City’s Comprehensive Plan (N-2 Examine and improve management practices for natural habitat and open space areas, including the provision of access to open space for City vehicles and equipment, to ensure that natural resources are protected.) ENVIRONMENTAL REVIEW The approval of this agreement is exempt under Section 15301(a) of the California Environmental Quality Act (CEQA) Guidelines; therefore, no environmental assessment is needed at this time. ATTACHMENTS Attachment A: Land Owner Agreement with Save the Bay PREPARED BY: ____________________________________________________ _________________________________________________________________________________________________ CMR:210:08 Page 3 of 3 DAREN ANDERSON Senior Ranger DEPARTMENT HEAD:______________________________________________ RICHARD JAMES Director of Community Services CITY MANAGER APPROVAL:_______________________________________ EMILY HARRISON Assistant City Manager CMR:214:08 Page 1 of 4 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: APRIL 28, 2008 CMR: 214:08 SUBJECT: APPROVAL OF SITE AND DESIGN REVIEW AND RECORD OF LAND USE ACTION TO ALLOW THE CONSTRUCTION OF A 3,600 SQUARE FOOT ULTRAVIOLET (UV) DISINFECTION FACILITY TO REPLACE THE EXISTING SYSTEM, AND THE ADOPTION OF A RESOLUTION APPROVING THE NEGATIVE DECLARATION FOR THE UV DISINFECTION FACILITY FOR THE PALO ALTO REGIONAL WATER QUALITY CONTROL PLANT AT 2501 EMBARCADERO WAY RECOMMENDATION The Planning and Transportation Commission (PTC), Architectural Review Board (ARB) and staff recommend that the City Council adopt a Resolution to approve a Negative Declaration and the application for Site and Design Review for a new ultraviolet wastewater treatment facility, based on the findings and draft conditions of approval in the Record of Land Use Action (Attachments A & B). PROJECT DESCRIPTION The Regional Water Quality Control Plant (RWQCP) began planning for a sustainable future with the initiation of the Long-Term Goals Study (LTGS) in 2000. Through a series of workshops, the RWQCP and stakeholders established a set of goals for the plant that meet the environmental and socioeconomic needs of the community. The disinfection system was the focus of the LTGS because of its use of hazardous chemicals, and was identified for change as the first step towards sustainability. Subsequent studies and workshops with the stakeholders concluded that ultraviolet (UV) disinfection presents the most viable alternative for replacing the existing chemical disinfection system. The life cycle analysis showed that the UV alternative releases fewer toxins, consumes less energy, and lowers the RWQCP’s greenhouse gas emissions substantially. On August 6, 2007 (CMR:322:07), Council authorized consultants, RMC Water and Environment, to design the new UV facility. Construction of the project is tentatively scheduled to begin at the end of 2008, once all entitlements have been received and funding is secured. CMR:214:08 Page 2 of 4 The proposed UV wastewater treatment facility will be replacing the existing chemical based treatment system. The new UV facility would consist of a 3,600 square foot concrete channel structure approximately 80 feet long and 45 feet wide, sitting 11 feet above grade. The UV facility and the associated lamp washdown and cleaning area would be permanently covered by an open-walled structure that would be approximately 30 feet tall. The project includes the installation of photovoltaic (PV) panels on the structure’s roof top. The base of the structure is unfinished concrete with aluminum railings. The metal canopy will have a dark brown finish, similar to the existing buildings at the facility. Attachment D includes additional background information, site photos, and photosimulations of the project. DISCUSSION The project site is located within the Palo Alto Baylands Nature Preserve, bordered by Embarcadero Road and Harbor Road, directly across from the Bay. The site is zoned Public Facility with the Site and Design Overlay PF(D). The RWQCP has the primary function of treating the entire City’s wastewater before it is released into the Bay. The wastewater plant functions are an existing permitted use, and the proposed UV facility is compatible with existing uses at the site. Within the RWQCP site, there are numerous buildings and structures, all related to its daily operations. Along the Embarcadero Road and Harbor Road frontages, there is existing mature vegetation approximately 50 to 75 feet tall that screens many of the internal structures. The RWQCP is surrounded by passive recreational uses, the Palo Alto Airport, and office warehouse uses. The project is in conformance with the zoning regulations for the PF zone district, but because the project is located in the Baylands Nature Preserve, there are additional principles for development that should be followed (see Attachment I). The overall mass of the project, due primarily to the canopy requirements, does not fit well with the Bayland’s aesthetic, but the project is well screened from all public views. However, the facility has a utilitarian function and has limited design alternatives. The proposed project meets the four Site and Design review findings as outlined in Attachment A, Section 3. BOARD/COMMISSION REVIEW AND RECOMMENDATIONS On March 12, 2008, the Planning and Transportation Commission reviewed the proposed project and recommended (6-0-0-1) that the project be approved, with two additional conditions. There was one member of the public who spoke in general support of the project, but voiced concerns about the loss of four parking spaces and questioned the format of the Record of Land Use Action. Verbatim minutes are found in Attachment K. At the PTC meeting, there was discussion about the importance of the landscape screening of the project and site overall. The conditions that were added by the Commission addressed these specific concerns. The first condition was to add landscaping to a section on Embarcadero Road that had a gap in the existing landscaping and secondly to prepare and implement a landscape plan for appropriate screening of the entire facility that is harmonious with the Baylands. Attachment A, Section 6, provides the complete list of draft conditions of approval for the project. CMR:214:08 Page 3 of 4 On April 3, 2008, the Architectural Review Board reviewed the proposed project and recommended (5-0) that the project be approved, with one additional condition to require that the project include an educational component for the public that describes the functions of this facility. The RWQCP has provided a summary of their existing educational program (Attachment E) that meets this ARB condition. No members of the public spoke on this item. Verbatim minutes are found in Attachment M. RESOURCE IMPACT The funds for the project have been appropriated in the Wastewater Treatment Enterprise fund. It is expected that grants and the State Revolving Fund will cover most of the estimated project cost of $21.3 million. Since the City is in the process of applying for more than one funding source, the specific breakdown of the funding for the project has yet to be determined. POLICY IMPLICATIONS The proposed project is consistent with the Comprehensive Plan and Baylands Master Plan and staff believes there are no other substantive policy implications. The project is well screened from public views, which mitigates its visual impact on the Baylands Nature Preserve. The project advances the City’s sustainability policies by using the UV treatment process and by incorporating the PV panels on the roof. ENVIRONMENTAL IMPACTS The proposed project is subject to environmental review under provisions of the California Environmental Quality Act (CEQA). An Initial Study has been completed and a Draft Negative Declaration has been prepared for this project in accordance with the CEQA requirements. The 30-day public comment period for this document was completed on February 29, 2008. No comments were received on the Draft Negative Declaration. PREPARED BY: _________________________________ CLARE CAMPBELL Planner DEPARTMENT HEAD: _________________________________ STEVE EMSLIE Director of Planning and Community Environment CITY MANAGER APPROVAL: _________________________________ EMILY HARRISON Assistant City Manager CMR:214:08 Page 4 of 4 ATTACHMENTS A. Record of Land Use Action B. Resolution Approving the Negative Declaration C. Location Map D. Applicant Submittal / Background E. RWQCP Educational Program F. Comprehensive Plan Table G. Zoning Table H. Correspondence I. Site Assessment and Design Guidelines, Palo Alto Baylands Nature Preserve (excerpt) J. PTC Staff Report, March 12, 2008 w/o attachments K. PTC Excerpt Verbatim Minutes , March 12, 2008 L. ARB Staff Report, April 3, 2008 w/o attachments M. ARB Excerpt Verbatim Minutes , April 3, 2008 N. Negative Declaration and Initial Study Checklist O. Plans (Councilmembers only)* * Prepared by Applicant; all other attachments prepared by Staff COURTESY COPIES Daisy Stark, Public Works James Allen, Public Works Phil Bobel, Public Works CMR:202:08 Page 1 of 3 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: APRIL 28, 2008 CMR:202:08 SUBJECT: STAFF RECOMMENDATION FOR COUNCIL DIRECTION ON A THREE MONTH STUDY REGARDING A SINGLE-USE PLASTIC BAG REDUCTION PROGRAM INCORPORATING THE INCREASED USE OF REUSABLE BAGS RECOMMENDATIONS Staff recommends that Council direct staff to: 1. Work with supermarket and pharmacy representatives during April, May and June 2008 to develop a single-use plastic bag reduction program incorporating the increased use of reusable bags; and 2. Return to Council as soon as practical after June 30, 2008 with recommendations for a comprehensive program and ordinance incorporating those recommendations. BACKGROUND The Palo Alto Zero Waste Operational Plan identified the need to control waste associated with single-use carryout bags. In addition, the San Francisco Bay Regional Water Quality Control Board is considering imposing new requirements for cities to control litter which ends up in creeks and San Francisco Bay. On March 17, 2008, staff summarized the problems associated with single-use bags for Council (CMR:158:08). Single-use plastic carryout bags made from polyethylene consume resources, create waste and litter, and negatively impact natural ecosystems. The fact that polyethylene plastic bags break down slowly in the natural environment makes them the least desirable option among all types of bags for protection of ecosystems. Reusable bags are the preferable alternative and are readily available and currently in use. Bring Your Own Bag Campaign The City of Palo Alto Public Works Recycling Program has conducted education campaigns about reusable bags, including their distribution, since the 1990’s. The City is coordinating a local Bring Your Own Bag (a.k.a. BYOBag!) campaign with retail stores from April-December 2008 and is collaborating in a Bay Area-wide campaign in April 2008. The BYOBag! Campaign is an outreach and education effort with the goal of increasing shoppers’ use of reusable bags whenever and wherever CMR:202:08 Page 2 of 3 wherever they shop in Palo Alto. In February 2008, shopping bag preferences of grocery and retail pharmacy shoppers were observed, indicating that shoppers used reusable shopping bags less than 10% of the time. The BYOBag! Campaign’s goal is to increase reusable shopping bag use to 30%, with a concerted effort extending April through December 2008. Community events will include a BYOBag! Campaign presence (e.g., May Fete Parade, Chili Cook-off). The Campaign is designed so the community works together toward this goal, engaging multiple sectors of the community including residents, businesses, nonprofit organizations, schools, and faith-based groups. For the duration of the Campaign, the BYOBag! message will be woven into the lives and activities of the Palo Alto community. For example: • Palo Alto retailers can become BYOBag! Campaign Partners, at no charge, by committing to actions at their store (e.g., placement of campaign signs/posters, offering incentives, selling reusable bags) to reinforce the BYOBag! message with shoppers. Retailers are rewarded with a mention in Campaign advertising. • Shoppers are rewarded with incentives (e.g., cash back, discounted purchases, entry into drawings) when shopping at BYOBag! Campaign Partner stores. • Non-retail businesses are becoming Community Partners (e.g., by distributing reusable bags to employees who pledge to use them). • Nonprofits are volunteering to help with outreach to shoppers and businesses and incorporating the BYOBag! message into their activities (e.g., children’s art activity at the upcoming Palo Alto Festival of the Arts). Ordinance Development Palo Alto’s first initiative to reduce the use of plastic bags was taken in 1988 when Chapter 5.35 of the Palo Alto Municipal Code (PAMC) was enacted. This Chapter was designed to ensure that stores offered paper bags to customers as an option so that customers were not, in effect, forced to take plastic bags. Staff has developed a draft Ordinance (Attachment A) to replace the existing Chapter 5.35 with new provisions requiring large supermarkets and pharmacies (as defined by the Ordinance) to phase out single-use plastic checkout bags within 6 months. The draft Ordinance would also strongly encourage the promotion of reusable bags. The draft Ordinance would still allow plastic bags at produce and meat departments at the affected supermarkets but would strongly encourage the stores to offer recycling of those bags. The draft Ordinance would only apply to approximately 12 large supermarkets and pharmacies in Palo Alto. However, staff is researching similar restrictions for other stores. DISCUSSION Staff has explained the draft Ordinance (Attachment A) to the affected supermarkets and large pharmacies by visiting each store. In addition, the draft Ordinance was discussed at an April 3, 2008 meeting with representatives from almost all affected stores. The meeting participants requested more time to work on a comprehensive approach to transitioning to reusable bags. Most store representatives felt that adopting the Ordinance restricting plastic bags now would result in an undesirable immediate shift to paper bags. Participants expressed the strong desire to establish a stakeholder’s group to develop companion programs to the Ordinance to help minimize the shift to paper and maximize the shift to reusable bags. Individuals volunteered for the stakeholder’s group and a first meeting time was established. CMR:202:08 Page 3 of 3 Staff is therefore recommending that the adoption of the draft Ordinance be deferred to allow the stakeholder’s group established on April 3, 2008, to work on a comprehensive approach during April, May, and June, a three-month period. Following that, staff would prepare new recommendations and return to Council as soon as practical. RESOURCE IMPACT The recommended series of meetings will not have significant resource impacts. POLICY IMPLICATIONS The recommendations are consistent with the City’s Zero Waste Operational Plan, Climate Protection Plan, Clean Bay Plan, and the Comprehensive Plan. They help implement policies articulated in those plans. ENVIRONMENTAL REVIEW Although the draft Ordinance is not being recommended for adoption at this time, it should be noted that the City of Palo Alto conducted an environmental review under the provisions of the California Environmental Quality Act (CEQA), consisting of an Initial Study followed by a Negative Declaration (Attachment B). The Negative Declaration identified that the adoption of the draft Ordinance would not result in any significant negative environmental impacts. This will be more fully discussed when the draft Ordinance is recommended for adoption. ATTACHMENTS Attachment A: Proposed Ordinance Attachment B: Environmental Checklist Form (Negative Declaration) PREPARED BY: PHIL BOBEL Manager, Environmental Compliance Division DEPARTMENT HEAD: GLENN S. ROBERTS Director of Public Works CITY MANAGER APPROVAL: EMILY HARRISON Assistant City Manager CMR:203:08 Page 1 of 3 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: APRIL 28, 2008 CMR:203:08 SUBJECT: ADOPTION OF AN ORDINANCE TO PROMOTE THE USE OF RECYCLED WATER RECOMMENDATIONS Staff recommends that Council adopt the proposed Ordinance (Attachment A) to promote the use of recycled water and move toward a fully sustainable water supply system in California. BACKGROUND The City of Palo Alto treats wastewater from homes and business at its Regional Water Quality Control Plant (RWQCP). The treated wastewater (recycled water) meets all standards for use to irrigate landscape, and for flushing toilets and urinals (toilets/urinals). Currently, the recycled water is used for irrigation at the Palo Alto Golf Course, Greer Park, and at the RWQCP. A pipeline is under construction to deliver recycled water to Mountain View (north of the Bayshore Area) for irrigation and potentially for toilet/urinal flushing. This pipeline project will be completed in approximately one year and implements a portion of the Master Plan for recycled water initially prepared in 1992. Palo Alto is studying the advisability of implementing a second portion of the Master Plan (covering the Stanford Research Park and associated areas) in the near future. To obtain State funding for such a project, State funding guidelines require that Palo Alto mandate the use of recycled water for those areas where it is available. DISCUSSION The proposed Ordinance would meet the requirements for possible State funding for a pipeline project within Palo Alto. It would require that customers (other than single-family residences), adjacent to a City recycled water pipeline, use the recycled water when it becomes available. However, retrofitting buildings to require dual interior plumbing (for toilet/urinal flushing) is not being proposed. (Dual plumbing for toilet/urinal flushing is addressed later in this report.) Other portions of the proposed Ordinance are not mandated by State funding requirements. These portions would require certain new and remodeled buildings to be constructed in a manner to readily accept recycled water (for the purposes described below) when it becomes available. These requirements are proposed because it is far cheaper to build in these features during initial construction rather than retrofit them. CMR:203:08 Page 2 of 3 Section 16.12.025 of the proposed Ordinance requires certain newly constructed landscaping to be installed with on-site infrastructure compatible with recycled water use. This is anticipated to cost very little additional money because new construction must already have a separate irrigation system, the main feature associated with the use of recycled water. The additional expense would primarily stem from use of purple colored pipe and certain other hardware requirements. (State regulations require “purple pipe” for recycled water pipelines to distinguish them from potable water lines.) Section 16.12.030 of the proposed Ordinance deals with dual plumbing toilet flushing, urinal flushing, and floor trap priming. This section does not require retrofitting of existing buildings. There are two situations where this would be required for new construction and remodeling. First, it would be required for buildings greater than 10,000 square feet (sq. ft.) which are inside a “Recycled Water Project Area.” Currently, there are no such areas within Palo Alto. Therefore, such areas would have to be so designated by the City Council in the future. Such a designation may be recommended by staff in the near future for the Stanford Research Park area and associated areas. The cost of dual plumbing for building interiors has been estimated to be on the order of 1% of the total building cost. Second, dual interior plumbing would be required for new (and remodeled) construction greater than 100,000 sq. ft. located anywhere in the City. Thus, even if the project is not within a Recycled Water Project Area, it would have to be dual plumbed if it met the 100,000 sq. ft. threshold. This requirement addresses the long term reality of water shortages in the Bay Area which will ultimately dictate more severe measures. Requiring dual plumbing now, at least for the very largest of buildings, will set the stage for substantial water reductions at a relatively small cost when compared to building retrofit. When a recycled water pipeline is ultimately constructed, the building would be ready to accept it. Toilet/urinal flushing can account for as much as 40% of internal water use. Staff believes it would be wise to take this opportunity to ultimately achieve such substantial water savings in Palo Alto’s largest buildings. An exemption process is provided in the proposed Ordinance because certain proposed projects may present unique construction challenges and costs. The City Manager would hear any appeals. Details of the exemption process will be established in the Rules and Regulations being developed now. Other Ordinance provisions establish the administrative features associated with the requirements, including: permitting, an exemption process, and enforcement of a recycled water program for Palo Alto. The details will be contained in Rules and Regulations referred to in the Ordinance. Most cities with established recycled water programs have set up program administration in this way. Palo Alto staff is working on Rules and Regulations now for adoption in Fiscal Year (FY) 2008-09. RESOURCE IMPACT Administration of a Recycled Water Program will not dictate a need for new resources in FY08-09. As the program becomes a reality in subsequent years, resources for design reviews and inspections will be needed. Staff envisions establishing a rate structure for the sale of recycled water which would cover those costs. For those limited buildings affected by the Ordinance, the cost of construction could be on the order of 1% greater than standard construction. This would be true, in principle, for City projects as well as private projects. However, it is unlikely that the proposed criteria would trigger coverage of any City projects. CMR:203:08 Page 3 of 3 POLICY IMPLICATIONS The recommended Ordinance is consistent with the City’s Comprehensive Plan and the Climate Protection Plan. ENVIRONMENTAL REVIEW The Recycled Water Ordinance is exempt from coverage under the California Environmental Quality Act (CEQA) under Sections 15307 and 15308 of Title 14 of the California Code of Regulations coupled with Sections 13554(c) and 13535.3 of the California Water Code. ATTACHMENTS Attachment A: Proposed Ordinance PREPARED BY: PHIL BOBEL Manager, Environmental Compliance Division DEPARTMENT HEAD: GLENN S. ROBERTS Director of Public Works CITY MANAGER APPROVAL: EMILY HARRISON Assistant City Manager