HomeMy WebLinkAbout2008-07-21 City Council Agenda Packet
1 07/21/08
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER
DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY
CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS.
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
July 21, 2008
6:00 PM
ROLL CALL
CLOSED SESSION
1. Conference with Labor Negotiator
Agency Designated Representative: Sherry Lund
Unrepresented Employees: City Manager
Authority: Government Code section 54957.6
2. Conference with Labor Negotiator
Agency Designated Representative: Sherry Lund
Unrepresented Employees: City Clerk
Authority: Government Code section 54957.6
3. Conference with Labor Negotiator
Agency Designated Representative: Sherry Lund
Unrepresented Employees: City Attorney
Authority: Government Code section 54957.6
SPECIAL ORDERS OF THE DAY
4. Proclamation Commending the Outstanding Contributions by Artist
Fletcher Benton
Attachment
5. Introduction of 2008 Palo Alto Management Fellows
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.
07/21/08 2
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER
DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY
CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS.
APPROVAL OF MINUTES
CONSENT CALENDAR
Items will be voted on in one motion unless removed from the calendar by two Council Members.
6. Approval of a Final Map to Create Six Residential Condominium Units
on a .57 Acre Lot at 433 W. Meadow Drive [08PLN-00149] (Item continued by staff recommendation to a date uncertain)
Attachment
7. Adoption of a Resolution Authorizing the City Manager to Execute the
Second Amended and Restated Northern California Power Agency
Metered Subsystem Aggregator Agreement and to Execute Subsequent
Amendments to the Agreement as Needed to Conform to Changes in
Regulatory Requirements
CMR Attachment
8. Policy and Services Committee Recommendations to Council in
Support of City’s Position on Southbound Highway 101 Ramp Metering
Project
CMR Attachment
9. Appeal of Director’s Approval of an Architectural Review Application for
a Four Story Commercial Mixed Use Retail/Office Building, Including
Design Enhancement Exceptions to Exceed the Maximum Height and
Floor Area, and a Variance Application for an Encroachment Into the
Bryant Street Special Setback at 278 University Avenue
CMR Attachment
10. Approval of a Contract with Geosyntec Consultants in the Total Amount
of $198,000 for Environmental Risk Assessment and Remediation Plan
Development Services for the Former Los Altos Treatment Plant Site
Located at 1237 North San Antonio Road - LATP Site Development
Preparation, Capital Improvement Program Project RF-09004
CMR Attachment
11. Adoption of a Resolution Amending the 2006-2009 Compensation Plan
for Classified Personnel (SEIU) Adopted by Resolution No. 8658 to
Reassign Fifteen Job Classifications from the Management and
07/21/08 3
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER
DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY
CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS.
Professional Personnel Group to the SEIU Unit and Change the
Compensation for Two Existing SEIU Classifications
CMR Attachment
12. Approval of a Utilities Enterprise Fund Contract With D'Arcy & Harty
Construction, Inc. in an Amount Not to Exceed $1,177,695 for
Wastewater Collection System Rehabilitation Capital Improvement
Program Project WC-06003 Project 19B
CMR Attachment
13. Approval of Amendment No. One to Refuse Enterprise Fund Contract
No. C07119835 With HF&H Consultants in the Additional Amount of
$20,323 for Services Relating to the Best and Final Offer Process for
the New Solid Waste, Recycling, and Organics Services Agreement
CMR Attachment
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.
REPORTS OF OFFICIALS
14. Confirmation of Approval of a Mitigated Negative Declaration for the
Mitchell Park Library and Community Center and an Addendum to the
Final Environmental Impact Report for the Main Library; Introduction
of an Ordinance Calling a Special Election and Ordering the
Submission of a Proposition Incurring Bonded Debt for the
Purpose of Construction and Completion of a New Mitchell Park
Library and Community Center, Renovation and Expansion of
Main Library, and Renovations to Downtown Library to the
Qualified Voters of the City of Palo Alto at the Special Municipal
Election to be Held on November 4, 2008; and Adoption of a
Resolution Determining that the Public Interest and Necessity Demand
the Construction and Completion of a New Mitchell Park Library and
Community Center, Renovation and Expansion of Main Library, and
Renovations to Downtown Library and Their Financing Through the
Issuance of General Obligation Bonds
07/21/08 4
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER
DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY
CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS.
CMR Attachment
15. Review of Results of Cost-Benefit Analysis of Climate Protection Plan
and Direction to Staff on Recommended Follow-Up Actions
CMR Attachment
COUNCIL MATTERS
16. Colleagues Memo from Council Member’s Kishimoto and Espinosa
Regarding Direction to Staff to Evaluate Resource Impacts of
Implementation of a Public Bicycle Rental Program
Attachment
17. Approval of an Employment Agreement With James Keene City
Manager
Attachment
COUNCIL COMMENTS, ANNOUNCEMENTS, AND REPORTS FROM CONFERENCES
Members of the public may not speak to the item(s).
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: 302:08 Page 1 of 3
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: UTILITIES
DATE: JULY 21, 2008 CMR: 302:08
SUBJECT: ADOPTION OF A RESOLUTION AUTHORIZING THE CITY
MANAGER TO EXECUTE THE SECOND AMENDED AND RESTATED
NORTHERN CALIFORNIA POWER AGENCY METERED SUBSYSTEM
AGGREGATOR AGREEMENT AND TO EXECUTE SUBSEQUENT
AMENDMENTS TO THE AGREEMENT AS NEEDED TO CONFORM
TO CHANGES IN REGULATORY REQUIREMENTS
RECOMMENDATION
Staff recommends that Council authorize the City Manager or his designee to execute the Second
Amended and Restated Northern California Power Agency (NCPA) Metered Subsystem
Aggregator Agreement with the California Independent System Operator Corporation (CAISO).
Staff also recommends that Council delegate the authority to the City Manager or designee to
execute subsequent amendments to the agreement as needed to conform to changes in regulatory
and CAISO Tariff requirements.
BACKGROUND
The City of Palo Alto is a member of NCPA. NCPA, acting on behalf of the City, schedules the
City’s electric load and resources within the CAISO balancing authority area pursuant to the
terms of the CAISO Tariff and the Amended and Restated NCPA Metered Subsystem
Aggregator Agreement (MSSAA). NCPA and the City have been operating under the terms and
conditions of the MSSAA since September 2002 (Resolution No. 8200, adopted July 15, 2002).
The City also participates in an aggregated pooling arrangement with other NCPA members,
known as “Pool Members” (Cities of Alameda, Biggs, Gridley, Healdsburg, Lodi, Lompoc, and
Ukiah; Plumas-Sierra Rural Electric Cooperative; and Port of Oakland). Under this pooling
arrangement, the City’s loads and resources are scheduled within an aggregated portfolio that is
operated and managed by NCPA. In addition to the general terms and conditions encompassed
within the CAISO Tariff, the MSSAA defines a number of specific terms and conditions under
which NCPA coordinates the pool’s load-following operations, reliability requirements,
scheduling, generation unit operations, and other functions within the CAISO.
7
CMR: 302:08 Page 2 of 3
DISCUSSION
The CAISO plans to implement a new market structure, which will change the environment in
which the City and NCPA will transact in the CAISO markets, on November 1, 2008. The
Market Redesign and Technology Upgrade (MRTU), which has been developed over the past six
years and approved by the Federal Energy Regulatory Commission (FERC), is intended to
increase the efficiency of the CAISO’s electric transmission grid operations and overcome flaws
in the current market design that were exposed during the 2000-01 electricity market crisis.
Some of the key elements of MRTU include: the implementation of a day-ahead market to trade
energy and clear congestion on the electric transmission grid; the use of a network model that
solves grid constraints before real-time operations; and the use of Locational Marginal Pricing
(LMP) as the basis for valuing grid usage charges. MRTU has required significant revisions to
the CAISO Tariff, and subsequently requires revisions to the MSSAA. The MRTU Tariff has
been approved by FERC pending final testing of the new market software.
In order to bring the existing MSSAA into alignment with the new MRTU Tariff, NCPA has
been actively working with the CAISO during the past year to revise and update the MSSAA.
As a result of this process, a number of provisions of the MSSAA have been modified, deleted,
and/or added to reflect the MRTU market design. The provisions changed include, but are not
limited to, the following:
• Terminology, References, and Definitions
• Term and Termination Provisions
• New and Revised Access and Scheduling Provisions
• Reliability and Operational Provisions
• New and Updated Settlement Provisions
These changes will be incorporated into the Second Amended and Restated NCPA Metered
Subsystem Aggregator Agreement that will be effective under MRTU, and will allow NCPA to
continue to manage the NCPA Pool Member loads and resources under the MRTU market
structure.
While the MSSAA amendments are close to final, the agreement is still subject to further
modifications by the CAISO or NCPA. Additionally, the CAISO is sill testing the software to
run its MRTU market, and as a result certain elements of the MSSAA revisions, which have to
be verified by the MRTU software, have not yet been finalized. However, once the revisions
have been finalized, the City, the other NCPA Pool Members, NCPA, and the CAISO will be
required to approve and execute the revised MSSAA in a timely manner so as to facilitate the
filing of the MSSAA with FERC. In order to ensure the amended MSSAA is effective on MRTU
startup, considering the FERC’s 60-day filing requirement and the current November 1, 2008
MRTU implementation date, the MSSAA should be filed with FERC on or before August 31,
2008.
RESOURCE IMPACT
Following the CAISO’s implementation of its MRTU market design, the costs for delivering the
City’s resources to meet the load-serving obligation of the City are projected to increase by
approximately $0.4 million per year, with an estimated upper limit of $1 million per year. Staff
CMR: 302:08 Page 3 of 3
has anticipated these increases and they have been incorporated in the FY 2008-09 Electric Fund
budget and electric rates.
POLICY IMPLICATIONS
This recommendation is consistent with the Council-approved Utilities Strategic Plan with
regard to managing supply portfolio risk to provide stable rates, and to manage business
processes cost effectively. This recommendation does not represent a change in current City
policies.
ENVIRONMENTAL REVIEW
The adoption of this resolution does not meet the California Environmental Quality Act’s
definition of a project, pursuant to California Public Resources Code Section 21065, therefore no
environmental assessment is required.
ATTACHMENTS
A. Resolution of the Council of the City of Palo Alto Authorizing the City Manager to Execute
the Second Amended And Restated NCPA Metered Subsystem Aggregator Agreement and
to Execute Subsequent Amendments to the Agreement as Needed to Conform to Changes in
Regulatory Requirements
B. Second Amended And Restated NCPA MSS Aggregator Agreement – Draft
PREPARED BY: ________________________________
DEBRA LLOYD
Senior Resource Planner
REVIEWED BY: ________________________________
JANE O. RATCHYE
Utilities Assistant Director, Resource Management
DEPARTMENT APPROVAL: ________________________________
VALERIE O. FONG
Director of Utilities
CITY MANAGER APPROVAL: ________________________________
STEVE EMSLIE/KELLY MORARIU
Deputy City Managers
CMR:316:08 Page 1 of 3
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PLANNING
AND COMMUNITY ENVIRONMENT
DATE: JULY 21, 2008 CMR: 316:08
SUBJECT: POLICY AND SERVICES COMMITTEE RECOMMENDATIONS TO
COUNCIL IN SUPPORT OF CITY’S POSITION ON SOUTHBOUND
HIGHWAY 101 RAMP METERING PROJECT
RECOMMENDATION
The Policy and Services Committee and staff recommend that the Council:
1. Continue support for the existing Council position on ramp metering as detailed in the
May 29, 1996 letter from Mayor Wheeler to Caltrans, and
2. Recommend that Santa Clara County implement a Memorandum of Understanding with
Caltrans for this issue similar to the one in place for San Mateo County, which would
specify the responsibilities of Caltrans and the local agencies in the oversight and
monitoring of the operations of the ramp metering program, and
3. Direct staff to convey the City’s position to VTA and Caltrans and report back to the City
Council.
BACKGROUND
On June 30, 2008 staff presented a review of eleven regional transportation issues to the Policy
and Services Committee, including the Southbound Highway 101 Ramp Metering project
(CMR:267:08). The full report from the Policy and Services Committee will be brought forward
to the City Council after the summer break. However, in order to provide timely input to the
Valley Transportation Agency (VTA) and Caltrans on the ramp metering project, staff is
bringing the Committee recommendation forward for Council approval at this time. Staff will
also bring forward a report to Council on the VTA Governance issue prior to the Council break.
VTA is the lead agency for the activation of ramp metering on the southbound ramps on
Highway 101 from Embarcadero Road in Palo Alto to De La Cruz Blvd. in San Jose. The ramps
to be metered in Palo Alto include the Oregon and Embarcadero southbound on-ramps. The
project schedule calls for completion of the ramp metering plans in the fall of 2008, initiation of
ramp metering by the end of the year and project evaluation in early 2009.
Staff has identified a number of issues related to ramp metering and its impact on Palo Alto.
These include the project’s impact on traffic on surface streets and the need for establishment of
CMR:316:08 Page 2 of 3
a formal process between VTA/Caltrans and the local agencies for monitoring and resolving any
problems that arise in the future. (See Attachment A, CMR 267:08 with Ramp Metering
attachments only).
The City Council last considered the issue of ramp metering in April 1996. The Council
endorsed the position that the ramp metering lights should not be turned on until such time as
there is a formal agreement between Caltrans and the local agencies detailing the operational
aspects of the project and the responsibilities and process for addressing operational concerns in
the event ramp metering had impacts on local streets. A copy of the letter from Mayor Wheeler
to Caltrans is included in Attachment A. Caltrans and the City/County Association of
Governments (C/CAG) created such a Memorandum of Understanding for the implementation of
ramp metering in San Mateo County (Attachment B). The MOU designates the C/CAG Board of
Directors as the policy body for policy decisions related to the implementation of ramp metering.
The MOU further establishes a Technical Committee comprised of representatives from
Caltrans, C/CAG and all the public agencies in the county. The Technical Committee is charged
with monitoring and overseeing the program, providing guidance and making all technical
decisions with regard to operational strategies and parameters of ramp metering. VTA staff has
indicated that this is not contemplated by VTA and that, at present, no VTA Board action is
anticipated before the ramp metering is turned on.
COMMITTEE REVIEW AND RECOMMENDATIONS
On June 3rd, the Policy and Services Committee voted 3-0 (Barton absent) to forward staff’s
recommendation to support the existing (1996) Council position on ramp metering, but added a
recommendation that Santa Clara County implement a Memorandum of Understanding with the
local agencies on this issue similar to the one in place in San Mateo County. The action minutes
from the P&S Committee meeting are provided as Attachment C. Upon Council action, staff
will draft an updated letter to Caltrans and VTA for the Mayor’s signature, reflecting Council
direction.
POLICY IMPLICATIONS
This recommendation is consistent with existing Council policy and Comprehensive Plan
transportation policies.
ENVIRONMENTAL REVIEW
VTA is the lead agency for this project and will need to complete the appropriate environmental
analysis prior to implementation of the ramp metering.
ATTACHMENTS
A: CMR 267:08, with Ramp Metering exhibits only
B: Memorandum of Understanding between C/CAG and Caltrans
C: Action Minutes from the Policy and Services Committee meeting of June 3, 2008
CMR:316:08 Page 3 of 3
PREPARED BY: _________________________________
GAYLE LIKENS
Transportation Manager
DEPARTMENT HEAD: _________________________________
CURTIS WILLIAMS
Interim Director of Planning and
Community Environment
CITY MANAGER APPROVAL: _________________________________
KELLY MORARIU / STEVE EMSLIE
Deputy City Managers
July 21, 2008
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
DATE: JULY 21, 2008 CMR: 319:08
SUBJECT: APPEAL OF DIRECTOR’S APPROVAL OF AN ARCHITECTURAL
REVIEW APPLICATION FOR A FOUR STORY COMMERCIAL MIXED
USE RETAIL/OFFICE BUILDING, INCLUDING DESIGN
ENHANCEMENT EXCEPTIONS TO EXCEED THE MAXIMUM
HEIGHT AND FLOOR AREA, AND A VARIANCE APPLICATION FOR
AN ENCROACHMENT INTO THE BRYANT STREET SPECIAL
SETBACK AT 278 UNIVERSITY AVENUE.
RECOMMENDATION:
Staff recommends that the City Council set a public hearing on this item and the associated
variance for September 15, 2008.
DISCUSSION:
Following the Architectural Review Board’s (ARB) recommendation for approval on June 5,
2008, the ARB application for the construction of a new four story building was approved by the
Director of Planning and Community Environment on June 12, 2008. The application request
included Design Enhancement Exceptions for five additional feet in height and to exempt the
existing basement area from the floor area calculation. The application also included a variance
request to encroach three feet into the required seven foot special setback along Bryant Street.
On June 30, 2008 a request for an appeal was filled by Lynn Chiapella. She has questioned the
calculation of the seismic bonus related to the inclusion of the basement square footage in the
calculation and the fact that the bonus is used for new construction rather than rehabilitation of
the existing building. She also objects to the three foot setback encroachment, the five foot
height exception and the exemption of the basement square footage (Attachment A)..
Section 18.77.070(f) of the Palo Alto Municipal Code (PAMC) requires that an appeal of the
Director’s decision shall be placed on the consent calendar for Council consideration within 30
days. The variance element of the application has a different path. The variance is required by
Section 18.77.060(e) of the PAMC to be heard by the Planning and Transportation Commission
(P&TC) prior to City Council review.
Staff is requesting that the hearing of the appeal by City Council be continued to September 15,
2008 so the variance can be heard by the P&TC prior to the City Council review. The P&TC
hearing is tentatively set for July 30, 2008. This will enable the variance and the other elements
of the application to be heard by the City Council at the same time.
________________________________ ___________________________
CURTIS WILLIAMS STEVE EMSLIE/KELLY MORARIU
Interim Director of Planning and Interim Deputy City Managers
Community Environment
ATTACHMENTS
A. Appeal letters- original dated June 30, 2008 and the revised letter dated July 9, 2008
B. ARB Approval letter dated June 12, 2008
CMR:313:08 Page 1 of 4
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: JULY 21, 2008 CMR: 313:08
SUBJECT: APPROVAL OF A CONTRACT WITH GEOSYNTEC CONSULTANTS IN
THE TOTAL AMOUNT OF $198,000 FOR ENVIRONMENTAL RISK
ASSESSMENT AND REMEDIATION PLAN DEVELOPMENT SERVICES
FOR THE FORMER LOS ALTOS TREATMENT PLANT SITE LOCATED
AT 1237 NORTH SAN ANTONIO ROAD - LATP SITE DEVELOPMENT
PREPARATION, CAPITAL IMPROVEMENT PROGRAM PROJECT RF-
09004
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or his designee to execute
the attached contract with Geosyntec Consultants (Attachment A) in a not to exceed amount of
$198,000 for consulting services for the development of an environmental risk assessment and
remediation plan for the former Los Altos Treatment Plant site, including $180,000 for basic
services and $18,000 for additional services.
BACKGROUND
The former Los Altos Treatment Plant (LATP) is a 13.26 acre site located at 1237 North San
Antonio Road. The LATP was previously owned and used by the City of Los Altos as a wastewater
treatment plant from 1958 until 1972. The LATP and its associated sludge ponds were abandoned in
1972 when Los Altos was connected to the Palo Alto Regional Water Quality Control Plant. Upon
closure of the LATP, many of the buildings were removed. A half interest of the property was
purchased by Palo Alto in 1984 with the intent of developing solid waste facilities on the site.
Over the years, a portion of the site has been utilized by the City as a contractor storage and staging
area and a portion of the land was leased to “Nutek”, a small company whose business consisted of
using an electronic beam generator to sterilize materials for the pharmaceutical industry.
On November 13, 2007, Council approved an agreement with the City of Los Altos that provided for
the purchase of Los Alto’s other half interest in the property (CMR:409:07). Staff is currently
working with Los Altos staff and the Santa Clara County Local Agency Formation Commission
(LAFCO) to complete the annexation process to incorporate the property into Palo Alto City limits.
DISCUSSION
On June 9, 2008, staff provided Council with an informational CMR on the status of the feasibility
study for the former LATP site and nearby parcels (CMR:279:08). CMR:279:08 contains a full list
of potential uses being considered including: a new animal services center complex; a utility storage
CMR:313:08 Page 2 of 4
and contractor staging area; a recycling drop-off center; as well as other potential uses. Staff will
evaluate potential uses of the LATP during the LATP Master Plan Study (Capital Improvement
Program Project PE-09004) approved by Council along with the 2008-09 CIP.
Previous investigations have revealed relatively minor levels of contamination at the LATP
including reactive sulfides, soluble copper, lead, oil and grease, semi-volatile organic compounds,
metals and other substances above their respective Environmental Screening Levels established by
the San Francisco Bay Regional Water Quality Control Board.
Before any proposed development can occur at the LATP, site remediation (cleanup) and
preliminary development activities must consist of:
• Demolition and removal of all existing structures on the site, including buildings, concrete
foundations (or pads), asphalt surfaces and a large sewage digester tank;
• Dewatering and proper disposal of contaminated water within the sludge ponds;
• Removal and proper disposal or treatment and onsite capping of the sulfide reactive sludge
contained within the sludge ponds;
• Removal and proper disposal or capping of contaminated soils in accordance with the
remediation plan objectives that will be approved by the State; and
• Confirmation sampling and testing, backfill and other site preparation before new facilities
can be located.
Public Works staff has solicited proposals from experienced and qualified consulting firms to
evaluate the LATP site information, conduct an environmental risk assessment, prepare a
remediation action plan utilizing risk levels acceptable to the State, generate plans and specifications
for future remediation site work, develop a monitoring plan, and provide confirmation sampling and
analytical services so that the City can remediate the site to acceptable contaminate levels and reuse
the property.
Due to the nature and quantity of the work, outside resources from a contractor are required. The
work requires highly experienced and trained personnel with education specializing in each of these
disciplines: chemistry, toxicology, engineering, hydrogeology and biology. In addition, the
consultant must have experience with methods, processes and knowledge of the regulatory agencies
and permitting procedures necessary to clean up similarly contaminated sites. Staff will provide
administrative oversight of the contract to ensure that the consultant is operating within budget and
is in compliance with all laws and regulations.
Selection Process
A notice inviting formal bids for the project was posted at City Hall and sent to eight consulting
firms. The bidding period was 19 days. Proposals were received from seven qualified consultants
on May 27, 2008.
Summary of Solicitation Process
Proposal Description/Number Former Los Altos Treatment Plant Environmental Risk
Assessment /RFP #126986
Proposed Length of Project 18 months
CMR:313:08 Page 3 of 4
Number of Proposals Mailed 8
Total Days to Respond to Proposal 19
Pre-proposal Meeting Date N/A
Number of Proposals Received: 7
An evaluation committee consisting of four staff members from the Public Works Operations
Division reviewed the proposals to ensure that the firms were responsive to the criteria identified in
the RFP.
The criteria used to select the recommended firm included:
• Quality and completeness of proposal;
• Quality, performance and effectiveness of the solution and services to be provided by the
Proposer;
• Proposer’s experience, including the experience of staff to be assigned to the project, with
engagements of similar scope and complexity;
• Cost to the City (Proposal costs ranged $67,040 to $303,933 for basic services);
• Proposer’s financial stability;
• Proposer’s ability to perform the work within the time specified;
• Proposer’s prior record of performance with City or others;
• Proposer’s ability to provide future maintenance, repairs parts and/or services; and
• Proposer’s compliance with applicable laws, regulations, policies (including City Council
policies), guidelines and orders governing prior or existing contracts performed by the
contractor.
Based on these criteria, the evaluation committee selected Geosyntec Consultants as the best rated
proposer. Geosyntec is a large consulting firm that specializes in environmental engineering and
remediation, geotechnical and civil engineering and construction related services. Geosyntec has 32
offices worldwide including offices in Oakland, San Francisco and Sacramento.
RESOURCE IMPACT
Funding for this contract is available in the FY 2008-09 adopted budget, LATP Site Development
Preparation, Capital Improvement Program Project RF-09004.
POLICY IMPLICATIONS
This project does not represent any change to existing City policies.
ENVIRONMENTAL REVIEW
The City of Palo Alto is the lead agency for this project. This project is categorically exempt from
the California Environmental Quality Act (CEQA) in accordance with Section 15306 because the
project only entails information gathering and preparing a plan for future action that will not cause a
major disturbance to an environmental resource. Any plan for future development on the property
will be subject to further environmental assessment.
ATTACHMENTS
Attachment A: Contract
CMR:313:08 Page 4 of 4
Attachment B: Certification of Nondiscrimination
PREPARED BY: __________________________________
RON ARP
Manager, Environmental Control Programs
DEPARTMENT HEAD: __________________________________
GLENN S. ROBERTS
Director of Public Works
CITY MANAGER APPROVAL: __________________________________
KELLY MORARIU and STEVE EMSLIE
Deputy City Managers
CMR: 314:08 Page 1of 4
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: HUMAN RESOURCES
DATE: JULY 21, 2008 CMR: 314:08
SUBJECT: ADOPTION OF A RESOLUTION AMENDING THE 2006-2009
COMPENSATION PLAN FOR CLASSIFIED PERSONNEL (SEIU)
ADOPTED BY RESOLUTION NO. 8658 TO REASSIGN FIFTEEN JOB
CLASSIFICATIONS FROM THE MANAGEMENT AND
PROFESSIONAL PERSONNEL GROUP TO THE SEIU UNIT AND
CHANGE THE COMPENSATION FOR TWO EXISTING SEIU
CLASSIFICATIONS
RECOMMENDATION
Staff recommends Council adoption of the attached resolution amending the 2006-2009
Compensation Plan for Service Employees International Union (SEIU), Local 521, to
reassign fifteen classifications to the SEIU bargaining unit for the pay period effective June
21, 2008. This reassignment is required pursuant to a Stipulated Order and Award between
the City and SEIU which resolved a longstanding grievance regarding the reassignment of
certain job classifications from the Management and Professional employee group to the
SEIU bargaining unit. The resolution also corrects the compensation for two Public Works
positions that were inadvertently omitted from the last salary schedule change.
BACKGROUND
Service Employees International Union (SEIU), Local 521 filed a grievance several years ago
claiming that the City of Palo Alto eliminated 45 job classifications involving 115 employees
from their bargaining unit by creating new management or professional classifications
outside of the SEIU unit. The issue was whether these job classifications in the Management
and Professional unit would be more appropriately assigned to the SEIU bargaining unit
based on the City’s Merit Rules and Regulations provisions which require the broadest
possible grouping of positions that share a “community of interest,” as well as job duties
historically performed by employees in each group. The remedy SEIU sought was to return
the job classifications and work traditionally performed by SEIU back to that unit.
11
CMR: 314:08 Page 2of 4
After many years of ongoing negotiations and grievance proceedings in which the City and
SEIU were unable to reach agreement, the parties finally agreed in late 2007 to have the
dispute heard by a mediator/arbitrator with extensive background in bargaining unit
definition. The arbitrator hearing this case worked for many years as an administrative law
judge for the Public Employee Relations Board and was well qualified to assess the parties’
positions and the classifications necessary to craft an appropriate and informed resolution.
The parties spent three days in mediation with the arbitrator in February and March 2008
discussing the classifications and criteria and spent extensive time outside those proceedings
reviewing and analyzing the details and duties of the classifications at issue.
DISCUSSION
A. Reassignments to SEIU
The arbitrator concluded that certain classifications are more appropriately classified in the
SEIU unit and issued a stipulated order and award to which the City and SEIU mutually
agreed. Effective with the pay period beginning June 21, 2008, the following 15
classifications involving approximately 31 employees shall be moved from the Management
and Professional group to the SEIU unit:
Business Analyst (except for one confidential position which shall be
assigned to Human Resources and shall have the title “Human Resources
Business Analyst”)
Coordinator, Public Works Projects
Coordinator, Utility Projects
Coordinator, Utility Safety & Security
Electric Project Engineer
Management Assistant
Managing Arborist (with the exception of one Supervising Arborist)
Payroll Analyst
Project Engineer (with the exception of one Supervising Project Engineer)
Sr. Buyer
Sr. Market Analyst
Technologist
Transportation Systems Management Coordinator
Utility Key Account Representative
Utility Market Analyst
Other provisions of the agreement include:
CMR: 314:08 Page 3of 4
Electric Project Engineer: This classification currently has two Electric Project Engineer
positions. Both positions will permanently remain in the Management, Professional and
Confidential Unit and will be re-titled Supervising Electric Project Engineer. If a third (or
further) Electric Project Engineer position(s) is/are authorized in the future, this/these
additional Electric Project Engineer position(s) shall be assigned to the SEIU Unit.
Sr. Technologist: The City will conduct a desk audit of the job duties performed by the
positions in the Sr. Technologist job classification. The desk audit will be completed within
sixty (60) days of final execution of the agreement.
The arbitrator worked with the City and SEIU to ensure that the pay and benefits for these
impacted employees would be minimally impacted. Employees being placed in the SEIU
unit will now have the benefit and protections provided in the existing agreement between
the City and SEIU such as pay increases, overtime pay, job security and access to the
grievance procedure but; to minimize the impact to affected employees, they will also
maintain, for as long as they remain in their current positions, their current salary level as
well as most management benefits with the exception of management annual leave. New
employees hired into these positions when vacancies occur will have only the SEIU benefits.
The City and SEIU are working together to ensure a smooth transition for these affected
employees.
B. Changes to Compensation for Two Public Works Classifications
In Fiscal Year 2006-07, six Motorized Equipment Mechanic positions in the Equipment
Management division of Public Works were reclassed to Motorized Equipment Mechanic II
to reflect a higher level of responsibility, certification requirements and skill level. The
division also employs one Mobile Service Technician whose responsibilities include heavy
equipment maintenance at the Landfill. Due to the Mobile Service Technician’s required
skill level and experience the position’s hourly rate has historically been placed five percent
(5 %) higher than the Motorized Equipment Mechanics. When the Motorized Equipment
Mechanics were reclassed and the associated hourly rate was increased, the hourly rate of the
Mobile Service Technician was inadvertently omitted from the salary schedule change,
creating an inequity that is being rectified with this amendment. In addition, a correction is
needed for an error made to the Motorized Equipment Mechanics – Lead who should be paid
seven percent (7%) above Motorized Equipment Mechanics II and was incorrectly paid by
approximately one-half percent (.5%).
RESOURCE IMPACT
CMR: 314:08 Page 4of 4
Funds to cover the employee salary and benefit costs of this amendment to the SEIU
Compensation Plan were previously included in the 2008-2009 Adopted Budget; therefore,
no budget adjustment is required.
POLICY IMPLICATIONS
The action recommended by this report is consistent with City Council direction.
ENVIRONMENTAL REVIEW
This is not a project under the California Environmental Quality Act (CEQA).
ATTACHMENTS
Attachment A – Resolution Amending the 2006-2009 Compensation Plan for Classified
Personnel (SEIU) Adopted by Resolution No. 8658 to Reassign Fifteen
Classifications from the Management and Professional Personnel
Group to the SEIU Unit and Change the Compensation for Two
Existing SEIU Classifications
PREPARED BY: Sandra T.R. Blanch, Assistant Director, Human Resources
DEPARTMENT HEAD:_________________________________________________
RUSS CARLSEN
Director of Human Resources
CITY MANAGER APPROVAL:__________________________________________
KELLY MORARIU/STEVE EMSLIE
Interim Deputy City Managers
CMR: 318:08 Page 1 of 4
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: UTILITIES
DATE: JULY 21, 2008 CMR: 318:08
SUBJECT: APPROVAL OF A UTILITIES ENTERPRISE FUND CONTRACT WITH
D’ARCY & HARTY CONSTRUCTION, INC. IN AN AMOUNT NOT TO
EXCEED $1,177,695 FOR WASTEWATER COLLECTION SYSTEM
REHABILITATION CAPITAL IMPROVEMENT PROGRAM PROJECT
WC-06003 PROJECT 19B
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or his designee to
execute the attached contract with D’Arcy & Harty Construction, Inc. (Attachment A) in an
amount not to exceed $1,177,695 for Wastewater Collection System Rehabilitation Capital
Improvement Program WC-06003 (WWC Project 19B).
Staff also recommends that Council approve and authorize the City Manager or his designee to
negotiate and execute one or more change orders to the contract with D’Arcy & Harty
Construction, Inc. for related, additional but unforeseen work which may develop during the
project, the total value of which shall not exceed $117,770.
DISCUSSION
Continuance of Contract Award From June 16 to July 21, 2008
Rehabilitation work on the wastewater collection system for this project will occur along
Arastradero Road between King Arthur’s Court and El Camino Real. This contract award was
originally scheduled for Council approval on June 16, 2008, to provide adequate time for the
winning bidder to be able to complete work on Arastradero before the start of the school year on
August 25. Immediately following completion of the work on Arastradero, the project is then
scheduled to move to the California Avenue area with the schedule minimizing California
Avenue area impacts during the September 21 Jewish Community Center event. However, the
Council approval for award of the contract was moved to July 21, 2008, in order to allow staff
adequate time to evaluate a bid protest filed by KJ Woods Construction Company, the low
bidder, on June 13, 2008. The roughly one month delay has removed any flexibility in the
schedule to accommodate anticipated construction issues.
12
CMR: 318:08 Page 2 of 4
In the protest letter, KJ Woods acknowledged that failure to complete forms in the Invitation for
Bids (IFB) that identified the contractor’s specific experience for the work included in the bid
items, as well as the experience of the contractor’s supervising staff could result in rejection of
the bid. The requirement for completing the forms (Form Numbers 2735-1 and 2735-2) was
stated in three different places in the bid documents: Section 2-Table of Contents, Section 300A
– Bidder Information, and Section 2735 – Polyethylene Sewer Pipe. Further information about
these forms was included in Section 2735 of the bid package. Section 2735 is a critical section
of the bid package because it includes construction methods and materials used for 75% of the
project. Thus, it is unlikely that a bidder would have overlooked this section. The city uses
specialized construction techniques in its wastewater collection system rehabilitation and
augmentation capital improvement program that requires a high level of expertise for correctly
installing lasting facility improvements. The required bid forms are not generic “just for
information” forms. The forms serve the important function of providing information critical to
the evaluation of the bids. Bidders acknowledge their obligation to provide the information in
the forms provided by signing the Bidder’s Bid Pages in Section 300 of the project Invitation for
Bids.
After receiving KJ Woods’ written protest, the City’s Purchasing division conducted an
investigation to determine whether the protest had merit. Following the investigation,
Purchasing informed KJ Woods in writing that the protest was denied and offered KJ Woods an
informal hearing with the Purchasing Manager. On July 8, the Purchasing Manager conducted
an informal hearing with KJ Woods. After further consideration of the issues discussed in the
hearing, the Purchasing Manager affirmed the City’s decision to deny KJ Woods’ protest in a
letter faxed and mailed on July 9. If KJ Woods was dissatisfied with the Purchasing Manager’s
response to the protest, KJ Woods had five working days to appeal to the Director of
Administrative Services. A timely appeal was filed by the July 16 deadline.
The City has had projects installed by inexperienced contractors that resulted in additional
construction costs, disruption to the community, increased and significant staff time to manage
the projects and contracts, arbitration, and increased maintenance costs. Staff has developed and
refined the issued bid documents over many years in order to be able to select the best qualified
bidders with project-specific experience for the City’s infrastructure replacement projects. Staff
has found that these forms have aided in the hiring of experienced contractors whose installations
have been of high quality, requiring reduced maintenance over time, and whose construction
practices have helped to minimize disruptions to the community. Staff uses the required forms
to quickly identify and verify the types of projects and specific experience bidders claim in their
bids.
For the last four fiscal years, the City has used some of the same forms on sanitary sewer
collection CIP projects to evaluate bidders’ specific project experience. It is noted that, with the
exception of one bid submittal, KJ Woods was a non-responsive bidder for failure to fill out the
required project experience forms on all but one of the IFBs the City issued over the last four
fiscal years. In the only instance where KJ Woods correctly filled out and submitted the required
forms, the firm’s bid was determined and declared to be a non-responsive bid because staff was
able to evaluate the information provided in the completed form and determine that the firm
CMR: 318:08 Page 3 of 4
lacked the required experience. KJ Woods failed to fill out the required forms for this IFB and,
as a result, similar to what has been done with past non-responsive submissions, has been
determined to be a non-responsive bidder. In the present case, however, staff expresses no
opinion as to KJ Woods’ qualifications or experience, based on the lack of properly completed
forms to use to make that determination.
Staff experience to date is that use of these IFB forms to thoroughly evaluate a bidder’s
experience for the project specific work has provided the City with the lowest possible total
overall project installation and maintenance costs and with well-qualified contractors.
Project Description
The work to be performed under the contract is for the replacement of approximately 8,100
linear feet of sanitary sewer mains of various sizes, 30 sewer manholes, and 200 sewer service
laterals. The scope includes the replacement of sewer mains, manholes, and laterals on
Arastradero Road and adjacent streets, as well as the replacement of sewer laterals on California
Avenue in the business district. As this sanitary sewer rehabilitation contract is a critical
component of the City’s overall infrastructure maintenance goals, staff wishes to avoid further
delay in completing the work. Any additional delay will also negatively impact back-to-school
traffic in the Arastradero Road area and the September 21 Jewish Community Center event on
California Avenue.
Summary of Bid Process
Bid Name/Number Project 19B Sanitary Sewer Rehabilitation/126462
Proposed Length of Project 180 calendar days
Number of Bids Mailed to
Contractors
8
Number of Bids Mailed to Builder’s
Exchanges
3
Total Days to Respond to Bid 21
Pre-Bid Meeting? Yes
Number of Company Attendees at
Pre-Bid Meeting
1
Number of Bids Received: 6*
Bid Price Range From a low of $958,000 to a high of $1,612,390
*2 responsive bids were received out of a total of 6 submittals. Bid summary is provided in
Attachment B.
Staff has reviewed all bids submitted and found that four out of six bids were non-responsive
because they failed to submit the required documentation for pipe-bursting experience. Staff
recommends that the bid of $1,177,695 submitted by D’Arcy & Harty Construction, Inc. be
accepted and that D’Arcy & Harty Construction, Inc. be declared the lowest responsive and
responsible bidder. The bid is eighteen percent below the engineer's estimate of $1,438,750.
The change order amount of $117,770, which equals 10 percent of the total contract, is requested
for unforeseen additional work that may develop during the project.
CMR: 318:08 Page 4 of 4
Staff confirmed with the Contractor's State License Board that the contractor has an active
license on file. Staff checked references supplied by the contractor for previous work performed
and found no significant complaints.
PROJECT COORDINATION
The work will be coordinated with the Public Works Department at the monthly department
coordination meetings and by meeting independently with Public Works’ project managers
whose projects may directly impact this project. During the coordination meetings, staff is
aggressively targeting areas such as Arastradero Road and California Avenue to more closely
plan and coordinate underground infrastructure into future street maintenance phases. The
targeted streets will be resurfaced in Public Works Engineering’s upcoming projects after utility
work is completed to prevent trenching in newly repaved streets.
RESOURCE IMPACT
Funds for this project are available in the Wastewater Collection Funds Capital Improvement
Program budgets.
POLICY IMPLICATIONS
This recommendation is consistent with the Council-approved Utilities Strategic Plan, Key
Strategy #2, “Invest in utility infrastructure to deliver reliable service.”
ENVIRONMENTAL REVIEW
This project is categorically exempt from the California Environmental Quality Act (CEQA)
pursuant to CEQA Guideline Sections 15301 (b) repair and maintenance of existing public utility
facilities and 15302 (c) replacement or reconstruction of existing utility facilities involving no
expansion of capacity.
ATTACHMENTS
A: Contract
B: Bid Summary
C: Certificate of Non-Discrimination
PREPARED BY: Silvia Santos, Project Engineer
Edward Wu, Senior Project Engineer
Roger Cwiak, Engineering Manager
DEPARTMENT HEAD: __________________________________
VALERIE O. FONG
Director of Utilities
CITY MANAGER APPROVAL: __________________________________
STEVE EMSLIE/KELLY MORARIU
Deputy City Managers
CMR:311:08 Page 1 of 2
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS
DATE: JULY 21, 2008 CMR: 311:08
SUBJECT: APPROVAL OF AMENDMENT NO. ONE TO REFUSE ENTERPRISE
FUND CONTRACT NO. C07119835 WITH HF&H CONSULTANTS IN
THE ADDITIONAL AMOUNT OF $20,323 FOR SERVICES RELATING
TO THE BEST AND FINAL OFFER PROCESS FOR THE NEW SOLID
WASTE, RECYLING, AND ORGANICS SERVICES AGREEMENT
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or his designee to
execute Amendment No. One to Contract No. C07119835 with Hilton Farnkopf & Hobson
(HF&H) Consultants (Attachment A) to increase the compensation an additional amount not to
exceed $20,323 to provide services relating to the Best And Final Offer process for the new solid
waste, recycling, and organic services agreement. The total compensation shall not exceed
$225,487 with these proposed additional services.
BACKGROUND
In March 2007, Council approved Contract No. C07119835 with HF&H Consultants (HF&H)
(CMR: 154:07) to assist the City in the solicitation process for a new solid waste and recyclable
services agreement. Staff has been working with HF&H in researching and developing
recommendations for the Request for Proposals (RFP), creating the RFP documents for release,
and analyzing the proposals and costs received.
In July 2007, Council adopted a Code of Conduct relating to the procurement process for the
waste hauling contract. Resolution 8734 discourages councilmembers from conducting non-
public meetings or conversations with potential proposers and requires that any such non-public
meetings be disclosed within 30 days of the meeting. In accordance with this adopted Council
policy and in accordance with purchasing best practices, a series of public meetings have been
conducted to gather Council and community input on this significant procurement.
At the June 23, 2008 Council meeting, Council gave direction on the level of services to be
included in the new solid waste, recycling, and organic services agreement. On August 4, 2008,
staff will return to Council to report on the evaluation and ranking of the two proposals and to
request a recommendation on the company with whom staff should negotiate a final agreement.
CMR:311:08 Page 2 of 2
Staff then plans to return in September 2008, with a recommendation for approval and execution
of the final agreement. New services are scheduled to begin July 1, 2009.
DISCUSSION
In order to lower costs and reduce the rate impact to customers, the Steering and Advisory
Committee working on the new agreement decided to request a Best and Final Offer (BAFO)
from the two proposers. The BAFO request provides the proposers with an opportunity to
further refine their proposals and costs. It also provides an additional opportunity to maximize
the competitive process between the proposers, thereby creating potential additional savings to
the City.
The BAFO request is an extra step in the solicitation process that was not previously anticipated
and results in the postponement of taking to Council the ranking of proposers and
recommendation from July to August 2008. The BAFO process also affects the contract with
HF&H because it is an additional step that was not in the original scope of work and therefore
requires Council authorization for amending the contract. Amendment No. One (Attachment A),
to contract CO7119835 provides for additional analysis and support needed from HF&H to
review the BAFO from proposers and to analyze the BAFO impact on proposed costs for
services.
RESOURCE IMPACT
Funds for this contract amendment are available in the Refuse Fund Budget.
ENVIRONMENTAL REVIEW
This is not a project under Section 21065 of the California Environmental Quality Act (CEQA).
The City is preparing an environmental assessment in connection with award of the waste
hauling contract.
ATTACHMENTS
Attachment A: Amendment No. One to Contract No. C07119835
PREPARED BY: _____________________________________
PAULA BORGES FUJIMOTO
Executive Assistant
DEPARTMENT HEAD: _____________________________________
GLENN ROBERTS
Director of Public Works
CITY MANAGER APPROVAL: ______________________________________
KELLY MORARIU and STEVE EMSLIE
Deputy City Managers
CMR:321:08 Page 1 of 8
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: CITY MANAGER’S OFFICE
DATE: JULY 21, 2008 CMR: 321:08
SUBJECT: CONFIRMATION OF APPROVAL OF A MITIGATED NEGATIVE
DECLARATION FOR THE MITCHELL PARK LIBRARY AND COMMUNITY
CENTER AND AN ADDENDUM TO THE FINAL ENVIRONMENTAL IMPACT
REPORT FOR THE MAIN LIBRARY; INTRODUCTION OF AN ORDINANCE
CALLING A SPECIAL ELECTION AND ORDERING THE SUBMISSION OF A
PROPOSITION INCURRING BONDED DEBT FOR THE PURPOSE OF
CONSTRUCTION AND COMPLETION OF A NEW MITCHELL PARK LIBRARY
AND COMMUNITY CENTER, RENOVATION AND EXPANSION OF MAIN
LIBRARY, AND RENOVATIONS TO DOWNTOWN LIBRARY TO THE QUALIFIED
VOTERS OF THE CITY OF PALO ALTO AT THE SPECIAL MUNICIPAL ELECTION
TO BE HELD ON NOVEMBER 4, 2008; AND ADOPTION OF A RESOLUTION
DETERMINING THAT THE PUBLIC INTEREST AND NECESSITY DEMAND THE
CONSTRUCTION AND COMPLETION OF A NEW MITCHELL PARK LIBRARY
AND COMMUNITY CENTER, RENOVATION AND EXPANSION OF MAIN
LIBRARY, AND RENOVATIONS TO DOWNTOWN LIBRARY AND THEIR
FINANCING THROUGH THE ISSUANCE OF GENERAL OBLIGATION BONDS
RECOMMENDATION
Staff recommends that Council:
1) Confirm approval of a mitigated negative declaration for improvements to the
Mitchell Park Library and Community center and an addendum to the final
Environmental Impact Report (EIR) for improvements to the Main Library.
2) Introduce an ordinance calling for a special municipal election on November 4, 2008
for the purposes of ordering the submission of a proposition incurring bonded debt to
construct and complete a new Mitchell Park Library and Community Center,
renovate and expand Main Library and renovate Downtown Library. The ordinance
also includes direction to the City Attorney to prepare an impartial analysis of the
measure.
3) Adopt a resolution determining that the public interest and necessity demand these
improvements to Palo Alto’s library system.
4) Designate up to four Council members to author the argument in favor of the
measure.
CMR:321:08 Page 2 of 8
BACKGROUND
Palo Alto libraries are an important community asset. They provide more than just books – they
are a place for residents to learn and to gather and they enrich the culture of the City. The City
Auditor recently determined that Palo Alto libraries are in the poorest condition when compared
to libraries in ten surrounding communities. Significant upgrades are needed to complete
improvements to Palo Alto’s branch libraries. Although approximately 2,500 people visit Palo
Alto libraries daily, they are cramped, have poor lighting, and have no room for expansion of the
collections or to add needed seating. They also lack community meeting spaces, group study and
quiet reading areas.
Many residents in the community rely on Palo Alto libraries. Circulation and use of the libraries
continues to increase. Last fiscal year, users checked out over a million and a half books, DVDs,
and other items. The current libraries have served the community well over the decades. Fifty
years ago, Palo Altans passed a bond measure to build a new Main Library and a branch library
at Mitchell Park. However, current conditions don’t allow the libraries to offer the services and
resources Palo Alto residents and young people deserve. For example, they were not designed
to accommodate the variety of ways people now use libraries and they cannot support the
collection expansion the community has identified as a priority. Just as the community has
changed, the libraries must change to better meet the needs of residents. Today’s libraries must
serve many functions beyond information resources: community gathering places for diverse
programs and events, rooms for organizations to host meetings, spaces for people who want quiet
study or contemplation, and spaces for small groups to study together.
For the past two years, the City Council has placed plans for enhanced library facilities and
operations on the top priority lists. There have been substantial work efforts by the City Council,
Library Advisory Commission (LAC), Parks & Recreation Commission and staff developing
proposals for enhanced library and community center facilities and operations. The LAC met
eleven times over seven months and extensively publicized these meetings to seek input into the
Library Service Model Analysis and Recommendations (LSMAR) planning process. At four of
these meetings, the LAC also reviewed and provided input on the library facilities study
conducted by Group 4 Architecture to evaluate space needs and site options for the Mitchell Park
Library and Community Center and space issues at Main and Downtown libraries. These efforts
culminated in approval by Council of the LSMAR and Library Space Study in December of
2006.
On July 7, 2008, the Council reviewed the results of polling for a November 2008 bond measure
and directed staff to prepare the necessary items for placing a measure on the ballot that would
include improvements to the Mitchell Park Library/Community Center, Main Library, and
Downtown Library.
DISCUSSION
Based on the Council’s direction on July 7, 2008, there are several procedural requirements for
placing the measure on the ballot. First, the Council must adopt a resolution establishing the
public interest in and necessity of completing the proposed project and an ordinance setting the
CMR:321:08 Page 3 of 8
election date that also identifies the ballot question that will be presented to Palo Alto voters, the
total amount of bonded indebtedness to be incurred, and the tax rate implications of the measure.
The proposed ordinance and resolution are attached to this report as Attachments A and B. This
ordinance also includes direction to the City Attorney to prepare an impartial analysis of the
measure. Pursuant to Government Code section 43607, the ordinance must be introduced at one
meeting and adopted at a subsequent meeting. Following the adoption of the ordinance by the
Council on August 4, 2008, the City Clerk will file the appropriate paperwork with the County
Registrar of Voters by August 8, 2008 to ensure that the measure appears on the November 4,
2008 ballot. Second, the Council must decide who will draft the ballot arguments in favor of the
measure.
Ballot Question:
The ballot question may not exceed 75 words and should be presented in a clear and concise
fashion so that it is clearly understandable to the electorate. The following language is suggested
for the library bond:
YES
LIBRARY FACILITY, COLLECTIONS, SAFETY
IMPROVEMENT BOND.
To ensure seismic safety, enhance disabled access, provide
additional space to expand library collections, add new
children’s and group activity areas, replace outdated
lighting, and provide proper ventilation and air
conditioning systems, shall the City of Palo Alto issue
bonds up to $76,000,000 to construct a new energy-
efficient Mitchell Park Library and Community Center,
expand and renovate Main Library, and renovate
Downtown Library, with annual audits and independent
citizen oversight?
NO
Based on Council direction on July 7, the bond measure will include the construction of a new
approximately 51,000 square foot combined Mitchell Park Library and Community Center (built
to LEED Gold green building standards), complete renovation and an approximately 4,000
square foot expansion of the Main library and a complete renovation of the Downtown library.
The total project costs eligible for bond funding are approximately $73 million. With financing
costs included, the total bond amount that would appear on the November ballot is $76 million.
Based on these numbers, the best estimate of the tax rate for this bond measure is $27 per
$100,000 of assessed property value.
Ballot Arguments:
In accordance with California Elections Code Section 9282, the City Council must determine
whether it wishes to exercise its rights to author and sign ballot arguments regarding the
measure. The final date for filing a direct argument is 5:30 p.m. on Wednesday, August 13, 2008
with the City Clerk. Direct arguments may not exceed 300 words and can not be changed or
withdrawn after August 13, 2008.
CMR:321:08 Page 4 of 8
Section 9287 of the Elections Code instructs the Clerk to select one argument in favor and one
argument against a measure for printing and distribution to the voters. The arguments can be
authored by a maximum of five eligible voters. If more than one argument for or more than one
argument against the measure is received by the deadline, the City Clerk must select only one
argument for and one against, giving preference and priority in the following order to:
1) the legislative body, or member/members of the legislative body authorized by
that body;
2) the individual voters, or bona fide association of citizens, or combination of
voters and associations, who are bona fide sponsors or proponents of the
measure;
3) the bona fide association of citizens; or
4) individual voters who are eligible to vote on the measure.
In accordance with California Elections Code Section 9285, when an elections official receives
an argument relating to a city measure, she shall send a copy of the argument in favor of the
proposition to the authors of the argument against the measure and a copy of the argument
against the measure to the authors of any argument in favor of the measure immediately upon
receiving the arguments. The author or a majority of the authors of an argument relating to a city
measure may prepare and submit a rebuttal argument not to exceed 250 words. The final date for
filing a rebuttal argument with the City Clerk is 5:30 p.m. on Wednesday, August 20, 2008.
In general, no ballot argument shall be accepted unless it bears the name or names of the person
or persons submitting it, or if filed by an organization, the name of the organization and the name
of at least one of its principal officers. No more than five signatures shall appear with any
argument. All arguments must be accompanied by the form statement required by California
Elections Code 9600. The Elections Code also provides the method for the word count standard.
Arguments may be withdrawn by their proponents at any time prior to and including the final
date for filing arguments. An information sheet prepared by the City Clerk regarding measures
along with the required forms is attached to this report (Attachment C).
City Attorney’s Impartial Analysis
The City Council may direct the City Attorney to prepare an Impartial Analysis of the measure.
Direction to prepare such analysis is included in the attached ordinance. The analysis shall not
exceed 500 words in length and is due to the City Clerk by 5:30 p.m. on August 20, 2008.
RESOURCE IMPACT
There are numerous financial challenges facing the General Fund, including the need for new
revenue sources for facility and service enhancements. As stated in prior infrastructure studies
and as policy approved by Council, new infrastructure efforts and new service levels require new
revenue streams. As the Long Range Financial Forecast has demonstrated, there is very limited
capacity to absorb any new expenses. Debt financing the capital costs envisioned by the
LSMAR will require a fresh, ongoing revenue stream to finance the debt service.
CMR:321:08 Page 5 of 8
Based on Council direction on July 7, the bond measure will include the construction of a new
approximately 51,000 square foot combined Mitchell Park Library and Community Center (built
to LEED Gold green building standards), complete renovation and an approximately 4,000
square foot expansion of the Main library and a complete renovation of the Downtown library.
The total project costs eligible for bond funding are approximately $73 million. With financing
costs included, the total bond amount that would appear on the November ballot is $76 million.
Based on these numbers, the best estimate of the tax rate for this bond measure is $27 per
$100,000 of assessed property value.
The potential construction of a new, larger Mitchell Park Library and Community Center will
require an allocation of additional annual operating expenses, both from a facility maintenance
and library/community center operations standpoint. Staff has worked to develop an estimated
range of these anticipated annual operating costs, based on input from the Library, Community
Services, Utilities and Public Works departments as well as the independent library consultant
who has been working with Group 4 Architecture on these projects. These costs include the
following: additional library and community center staff necessary for larger Mitchell Park
facility (no more than 4 full time positions – three Library and one Community Center - as
recommended by library consultant); new Public Works Facilities Mechanic position for
building systems maintenance; custodial/maintenance costs; utility costs; library collection
maintenance; public computer replacement; security system costs; and furniture replacement.
The estimated annual cost for these items could range between $750,000 and $1.1 million. It is
difficult to produce a definitive estimate because the buildings are still in the preliminary design
phase. Additionally, based on the proposed construction schedules for the facilities, the total
annual amount would not be required before FY2013/14, allowing for these costs to be phased in
and evaluated over time.
The City has not provided the resources needed to maintain its existing infrastructure. Presently,
Facilities Maintenance staff maintains a workload that requires that each person handle three
times as much area per person as compared to industry standards. A recent report completed to
quantify the City’s facilities needs recommended adding 4 facilities technicians (one of which
has been budgeted for FY2008/09) and 12 temporary full-time equivalents to catch up with the
maintenance and repair backlog. Since sufficient resources are not currently provided for
existing facilities, additional facilities cannot be maintained without a corresponding increase in
staff and operating expense.
Staff will also be evaluating the required library staffing levels pending the outcomes of the
library technology plan. A report analyzing the benefits and costs of utilizing automated
materials handling (AMH) systems and RFID technology in the libraries will be finalized within
two months. A key recommendation of the draft report is that AMH technology be installed at
Main, Children’s, and Mitchell Park libraries if the proposed bond measure passes. This will
allow for some staff efficiencies and will support the projected rise in circulation at the improved
libraries. While the cost to purchase AMH systems for Main and Mitchell Park is estimated at
$700,000, the life span of this equipment is long – approximately 20 years.
Regardless of any potential offsets, there will be some additional level of annual operating and
maintenance costs. To address these added costs, staff will need to evaluate potential service
CMR:321:08 Page 6 of 8
reductions in the General Fund or look to future economic development tax revenues. If staff is
unable to make service adjustments immediately, there is an option to use one-time money in the
first few years of facility operations. Staff will continue to develop and refine a plan for
addressing these added costs pending approval of a potential bond measure in November.
In addition to the ongoing operating and maintenance costs, there are costs associated with
furnishing and equipping these new facilities that cannot be included in a bond measure. These
costs include the furnishings, fixtures, and equipment for the facilities. The current estimate for
these items is approximately $4.3 million (based on the May 19 presentation). The Palo Alto
Library Foundation has discussed spearheading a fundraising campaign with other organizations
to cover the costs of these items plus approximately $1 million for additional items for the
collection. If this campaign does not raise all of the anticipated funds, the City would have to
explore other one-time funding options for these costs.
POLICY IMPLICATIONS
This report is consistent with existing City policies and with the establishment of the Library
Plan/Public Safety Building as a Top 4 priority for 2008.
ENVIRONMENTAL REVIEW
Typically, the types of environmental approvals at issue for the proposed library projects are
handled by the Director of Planning and Community Environment, who has reviewed and
approved the environmental review documents for the library improvement projects described in
this report. However, given the scope and public interest in these projects, staff is also asking
Council to confirm the Director of Planning and Community Environment’s approvals.
Mitchell Park
An Initial Study (IS) prepared for the proposed new Mitchell Park Library and Community
Center analyzed the environmental impacts resulting from the project and identified mitigations
that would reduce the impacts to a less than significant level. The Initial Study concluded that
impacts associated with Aesthetics, Air Quality, and Hazardous Materials were potentially
significant and required mitigation measures. Air Quality and Hazardous Materials impacts are
construction-related and require mitigation only during construction. Best Management
Practices set forth by the Bay Area Air Quality Management District (BAAQMD) will be
incorporated in the project to meet air quality standards prescribed by the BAAQMD during
construction. In order to ensure that removal of hazardous materials do not pose a hazard to
either constructions workers or the public, safety protocols and best management practices for
removal of any hazardous materials either in the buildings or the soil will be required The
aesthetic impact of removal of several mature trees will be mitigated by tree replacement and
additional landscaping. Based on the analysis in the IS, a Mitigated Negative Declaration
(MND) was prepared and circulated for a 20-day public review period beginning May 16, 2008
through June 5, 2008. Although an IS/MND had been prepared for the Mitchell Park Library
and Community Center project in 2002 and the current project is significantly reduced in scope
and impact from the 2002 concept, staff prepared a subsequent IS/MND rather than amend the
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2002 IS/MND to provide an opportunity for public comment. The Director of Planning and
Community Environment adopted the Mitigated Negative Declaration on June 6, 2008.
Main Library
A Final Environmental Impact Report (EIR) for the Main Library expansion (and the Art Center
project) was certified on June 24, 2002. The 2002 FEIR covered the library expansion, from
26,000 square feet to 66,000 square feet, and Art Center expansion, from 29,000 square feet to
56,000 square feet. The project has now been modified to remove the Art Center expansion
plans and considers instead a much smaller 4,000 square foot addition to the existing Main
Library. In 2007, an Addendum (dated November 24, 2007) to the 2002 EIR was prepared to
reflect the changes in the scope of the project. Based on the analysis in the Addendum, the
Director of Planning and Community Environment has determined that the FEIR certified on
June 24, 2002 provides adequate environmental clearance for the revised project and has
approved the Addendum.
Since the proposed project would reduce the total square footage from the previously analyzed
66,000 square feet to 30,763 square feet and retain the integrity of the historic building, the
Environmental Analysis reflected in the Addendum concludes no new impacts or mitigation
measures are required by the proposed project. The impacts and mitigation measures from the
2002 EIR are the same or modified to a lesser degree to reflect the smaller project, as
summarized below.
Biological Resources
The general impacts and mitigation measures from the 2002 EIR remain basically the same
although reduced in scope. The impacts and mitigations have been slightly modified because of
the reduction in the number of trees proposed for removal. Ten trees are now likely to be
removed whereas the 2002 project anticipated 85-121 trees to be removed. Replacement of
removed trees remains the mitigation measure.
Cultural Resources
Because the proposed project would not remove a building of historic significance (the Main
Library), the significant and unavoidable impact that was identified in the 2002 EIR has been
removed. The proposed project will be required to undergo review and approval by the Historic
Resources Board and would be required by the City to be consistent with The Secretary of the
Interior’s Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings.
Thus, the impact of the proposed project on cultural resource values would be less than
significant.
CMR:321:08 Page 8 of 8
Downtown Library
The Downtown Library project is exempt for the California Environmental Quality Act, per
section 15301, “Existing Facilities.” The proposed renovations to the Downtown Library are
limited to facility upgrades that will involve improvements related to the operation, repair,
maintenance, permitting, leasing, licensing, or minor alteration of existing public or private
structures, facilities, mechanical equipment, or topographical features, and will involve
negligible or no expansion of current use of the Downtown Library.
ATTACHMENTS
Attachment A: AN ORDINANCE OF THE COUNCIL OF THE CITY OF PALO
ALTO CALLING A SPECIAL ELECTION AND ORDERING THE
SUBMISSION OF A PROPOSITION OF INCURRING BONDED DEBT
FOR THE PURPOSE OF CONSTRUCTION AND COMPLETION OF A
NEW MITCHELL PARK LIBRARY AND COMMUNITY CENTER,
RENOVATION AND EXPANSION OF MAIN LIBRARY, AND
RENOVATIONS TO DOWNTOWN LIBRARY TO THE QUALIFIED
VOTERS OF THE CITY OF PALO ALTO AT THE SPECIAL
MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 4, 2008
Attachment B: RESOLUTION OF THE COUNCIL OF THE CITY OF PALO
ALTO DETERMINING THAT THE PUBLIC INTEREST AND
NECESSITY DEMAND THE CONSTRUCTION AND COMPLETION
OF A NEW MITCHELL PARK LIBRARY AND COMMUNITY
CENTER, RENOVATION AND EXPANSION OF MAIN LIBRARY,
AND RENOVATIONS TO DOWNTOWN LIBRARY AND THEIR
FINANCING THROUGH THE ISSUANCE OF GENERAL
OBLIGATION BONDS
Attachment C: Information sheet from the City Clerk regarding measures
PREPARED BY: __________________________________
Kelly Morariu
Interim Deputy City Manager
DEPARTMENT HEAD: __________________________________
DIANE JENNINGS
Library Director
CITY MANAGER APPROVAL: __________________________________
FRANK BENEST
City Manager